On the Market: Walgreen’s development changes hands in Steamboat
June 3, 2011
Steamboat Springs — Construction could begin as soon as Monday on the new Walgreen's store in City South at the corner of U.S. Highway 40 and Pine Grove Road. But there will be a new developer in place.
Steamboat developer Brian Olson confirmed Thursday that he and partner Rod Forrester sold Lot 2 City South and the city entitlements along with it for $905,000.
The new developer is a suburban Chicago man with long ties to Steamboat, Patrick Corrigan, who is a preferred developer for Walgreens and said he has developed between 15 and 20 of the stores.
"I just finished one in Eagle River, Wis.," Corrigan said Thursday from his office in Wilmette, Ill. "The new store in Steamboat is on an excellent site."
Olson said it was difficult to let go of the project after a lengthy city planning process that saw him receive a vote of denial from Planning Commission only to have City Council reverse the verdict.
"It was thought. I'm very proud of the entitlements we got, and we wish we could have carried out the development," Olson said. "But it ultimately came down to a financing issue. It was difficult for Rod and I to obtain financing and this was best."
Corrigan, who has been coming to Steamboat for more than 30 years and owns a home here, will build the store and lease it to Walgreens.
Olson said he and his partner were approached by Corrigan.
Corrigan's business, Corrigan Properties, also develops other types of commercial buildings including medical office buildings.
Asked if there are compatible businesses that might be attracted to locate on a vacant site adjacent to the Steamboat Walgreens, Corrigan said, "yes," but the economic climate suggests it might not happen soon.
"It's a terrible time for development," Corrigan said. "It think it's down almost 90 percent nationally."
He said the new Walgreens will be the latest prototype for the store and larger than most. He expects it to be completed by Nov. 1. The general contractor is Waner Construction, of Littleton, a preferred Walgreens builder. Corrigan said he expects Waner to use as many local subcontractors as possible.
Waner also has built banks, restaurants and Whole Foods groceries in the Denver area.