Fort Collins renewal authority approves $800,000 for motel acquisition
The appropriation would fund a court deposit under a proposed immediate-possession agreement, giving the authority use of the property once paid. The deposit is not the final price; valuation would proceed separately, with a trial possible if needed.
The Fort Collins Urban Renewal Authority Board approved an $800,000 supplemental appropriation to acquire the former El Palomino Motel at 1220 North College Avenue.
The appropriation would fund an $800,000 court deposit under a proposed agreement for immediate possession with the property owner. A staff member said the terms had essentially been agreed upon, but the agreement was not yet finalized. Under the proposed agreement, the authority would have 60 days after a court order granting immediate possession to deposit the money. The owner could apply to withdraw $250,000 from the deposit.
The authority would gain full possession and use of the property upon making the deposit. It began condemnation proceedings after negotiations failed. The staff member said the authority wanted possession as winter approached so it could secure the property, which was in poor condition and beginning to attract nuisances and other problems. He said experience at another motel the authority owns just north showed the value of keeping the property “fenced and boarded up and secured and patrolled” before winter.
The deposit would count toward the property's final compensation rather than settle its price. The staff member said the authority did not believe the property was worth near $2.6 million, and it might not be worth $800,000. He said the authority had argued it was worth zero and could be entitled to some of the deposit back if the court's valuation came closer to that figure.
A public commenter said he was speaking on behalf of the Fort Collins Chamber and had hoped it would submit a formal letter. He said the chamber did not normally endorse eminent domain but supported this action because of “public health and safety hazards that extend well beyond their property lines” that threatened neighboring properties and the public. A board member called the property a nuisance and blight for years, perhaps decades, and said nearby residents, business owners and workers would welcome the authority taking possession and making it safe through winter.
Under the proposed agreement, just compensation would be the only issue left for trial, if one is needed. The staff member said the valuation process would proceed separately and might take place 12 to 18 months later.