City advances Salt Flats land bank with letters of intent for homeownership and mixed‑income projects

The Grand Junction City Council approved two letters of intent Wednesday to transfer small parcels in the city‑owned Salt Flats land bank to private developers who plan homeownership and mixed‑income for‑sale projects.

By vote, council authorized the City Manager to sign a letter of intent for Bridal Homes LLC to acquire two lots (combined roughly 3.07 acres) for a proposed 48‑unit deed‑restricted homeownership development; the motion passed by voice vote with no recorded opposition. The LOI sets the purchase price at zero for subdivision and resale to individual purchasers and requires 48 deed‑restricted units at or below 100% AMI for a minimum 30‑year deed restriction.

Council also authorized a separate LOI for Vertical to acquire three Salt Flats parcels (roughly 3.42 acres) for a proposed 43‑unit for‑sale project with mixed incomes. Vertical’s proposal includes up to 23 units restricted at 100% AMI or below; market‑rate units on the same parcels would not be deed‑restricted. Council approved the Vertical LOI in a 6‑0 vote with one abstention.

Why it matters: Salt Flats is a city land‑banked site acquired with a Proposition 123 land‑banking grant; the city purchased the 21.78‑acre property earlier in the year and is deploying parcels to multiple developers across several phases. City staff and council framed the transfers as part of a strategy to increase homeownership and mixed‑income opportunities while meeting Proposition 123 commitments to count affordable units toward state goals.

Project details and conditions: Ashley Chambers, the city’s housing manager, said the Salt Flats site was acquired for $3.2 million with $2.2 million in Prop‑123 land‑banking grant funds and that Phase 1 infrastructure work is already underway. Chambers said the project site has a requirement (from the land‑banking grant) that at least 70% of units on the overall site meet the Prop‑123 “capital A” affordable definition; the remainder of the site may include attainable or market‑rate units to help cross‑subsidize lower AMIs.

Bridal Homes (labeled in staff materials as “Rural Homes” in some slides) proposes 48 modular, deed‑restricted homeownership units targeted at up to 100% AMI, with many units intended for lower AMI bands (70–80% AMI). Chambers said Bridal Homes is pursuing Prop‑123 scattered site homeownership funding and plans modular duplex and single‑family homes manufactured by a local factory partner.

Vertical’s proposal is a for‑sale community of approximately 43 homes, with 23 units deed‑restricted at 100% AMI and other units at market rate. The LOI before council set a symbolic purchase price of $100 and is contingent on Vertical delivering the deed‑restricted units and meeting required qualifications; the LOI and future purchase agreements will require further council review and ordinance approval when the final sale is executed.

Council comment and concerns: Councilmember Van Dyke said he was cautious about including market‑rate units on land acquired and assembled for affordable housing, arguing that providing very low‑cost site control or property could appear to subsidize market‑rate development and compete with private builders. Councilmember Stell (Stout) and others responded that the Salt Flats plan is intentionally mixed‑income so market units can cross‑subsidize deed‑restricted units and that the city would not realize the deed‑restricted units without the mixed‑income approach.

Next steps: Chambers said the LOIs are contingent on subdivision, final finance awards and contract execution; final purchase agreements and any required ordinance authorizing sale will return to council for approval.