Yampa Valley Housing Authority counters 2 offers for Elk River Village
July 10, 2012
Steamboat Springs — The Yampa Valley Housing Authority has countered two offers to purchase the burdensome Elk River Village development site, but people close to the process are not optimistic that either of the proposed deals will be consummated.
Housing Authority Executive Director George Krawzoff said neither of the two offers would have wiped out the nearly $2 million in debt on the land just north of the 7-Eleven convenience store on Elk River Road. And both offers were complicated in their own way.
Krawzoff said this week that the Housing Authority had countered both offers and had not heard back from the prospective buyers.
"Activity is good, and not to diminish the work both entities put into their offers, but both need significant additional negotiation and work," Krawzoff said. "They were not close to satisfying our obligation and allowing us to move forward."
The Housing Authority is expected to discuss the future of Elk River Village at two points during its agenda for a regular monthly meeting at noon Thursday. Strategic directions for Elk River Village will be discussed relatively early in the agenda at about 12:20 p.m. Krawzoff and Housing Authority board President Rich Lowe will discuss the two offers toward the end of the meeting.
One of the offers came from Routt County homebuilder John McParland, who is interested in developing affordable housing on the site, and the second came from Denver developer Drake Real Estate Services, which has developed commercial real estate in recent years as well as managing property and purchasing and remodeling existing homes.
When housing was scarce
The board of directors has turned over since Housing Authority purchased the 10-acre Elk River Village site in 2006. For most of the intervening time, it has been making interest-only payments that totaled about $110,000 annually. In early 2012, the loan was restructured to include some principal. The money to carry the debt comes from the city of Steamboat Springs and Routt County, which combine to fund the Housing Authority with annual support of $168,000.
To reach Tom Ross, call 970-871-4205 or email tross@SteamboatToday.com