Work to begin Monday on 302 Conifer in Fort Collins' Old Town North

302 Conifer is set to include a rooftop deck, a co-working space and a dog wash area, among other amenities. Workers are expected to start on the 76-unit apartment building next week after its financing closed Tuesday. Courtesy Carl Szanton.

Originally published at BizWest September 24, by Beth Potter

FORT COLLINS — Work is set to begin Monday on a 76-unit, income-restricted apartment complex approved at 302 Conifer St. in the Old Town North neighborhood.

Development firm Szanton Co., with offices in Denver and Maine, closed on the financing for the project Tuesday, including a $3.22 million loan at 3% from the Fort Collins Urban Renewal Authority. The firm is partnering with several other agencies on the funding for the estimated $26.2 million project on an empty 1.19-acre lot at the intersection of Conifer Street and Blue Spruce Drive.

Fort Collins leaders want to support housing projects such as this one, said Andy Smith, redevelopment manager at the Urban Renewal Authority.

“We're getting very creative and looking for new ways to fund affordable housing, so this is a pioneering project,” Smith said.

Putting together loan financing for such a project is “super-hard,” Smith said. All of the costs to build the new complex are the same as any other apartment building, from labor to

landscaping, but the projected future income is restricted, Smith said.

The apartments are meant to serve people in the “missing middle" company spokesman Carl Szanton said - a population that makes too much to qualify for other housing programs but who cannot afford to rent or buy homes at market rates.

It’s the first time that Szanton has built a housing project with funds from the Colorado Proposition 123 Equity program at the Colorado Housing and Finance Authority, and tenants will receive money as a result of that, Szanton said.

The Proposition 123 Equity program will be interesting for tenants, because money goes back to them as cash-back payments much like you would see from a cash-back credit

card, Szanton said. Those funds can be used for people to do things like save money for a down payment on their own homes or save for retirement.

“They can spend it on whatever they see fit. The idea is to help them,” Szanton said. “We're really excited that residents of 302 Conifer will be part of that tenant equity fund.”

In addition to the Proposition 123 award from the state Office of Economic Development and International Trade, and the Colorado Housing Financing Authority, Szanton Co. also

received a construction loan from FirstBank and a permanent loan from the Federal Home Loan Mortgage Corporation, which is commonly known as Freddie Mac. A secondary piece

of the debt also came from the Colorado Housing and Finance Authority, and the Fort Collins Urban Renewal Authority was a third-position loan, Szanton said. Szanton Co. paid $650,000 to purchase the land.

While the URA loan will be paid back with interest, the project could not be done without it, Szanton said. The Urban Renewal Authority also pledged a $100,000 grant, which is set to be

paid as a property tax reimbursement over three years, according to URA materials.

“To fill the gap, the project required an interest rate lower than what bank financing would have provided, so the URA wanted to be part of solving the problem,” Szanton said. “So they found a creative way to enter into the public-private partnership.”

Rents will start around $1,500 and will go up from there to close to market rate, Szanton said.

People who earn between 70% and 100% of the area median income can apply to live at the new apartments. In Larimer County, a person who makes between $62,580 to $89,400 —

the 70% and 100% area median income figures for Larimer County that are published by the Colorado Housing and Finance Authority and based on information from the U.S. Housing and Urban Development Department — could qualify to rent.

A family of four could make between $89,320 and $127,600 and qualify for an apartment in the complex, based on the area median income tables.

The apartment complex is expected to include eight studio apartments, 56 one-bedroom apartments and 12 two-bedroom apartments. Also planned are a rooftop deck, a fitness center, a co-working space, a dog wash spot and a rooftop solar array, among other things. The architect is Santulan Architecture of Denver; and the construction manager is Dohn Construction of Fort Collins.