The Grand Junction City Council on Oct. 1 approved an ordinance authorizing the city manager to sign a 99-year lease of about 3.14 acres at the Salt Flats site to nonprofit developer Rural Homes for a deed-restricted homeownership project.

Housing Manager Ashley Chambers told council the Salt Flats property is a 21.78-acre site where grant conditions require that 70% of units be affordable. The city purchased the site for $3,200,000 with a $2,200,000 land-banking grant awarded through the Colorado Housing and Finance Authority and Proposition 123. An additional $2,000,000 infrastructure grant for the first phase was awarded in 2024, Chambers said.

The lease being authorized Thursday applies to the project’s northeastern parcel and accompanies a purchase-and-sale letter of intent, Chambers said. Under the development plan presented to council, Rural Homes will deliver 48 homeownership units deed restricted at 100% of area median income or below. The units are modular and, Chambers said, have already been built at a factory in Buena Vista and will be delivered to the site once entitlements are complete. The lease formalizes site control so Rural Homes can secure funding and proceed with testing and site analysis.

Chambers described the broader Salt Flats plan as a multi-phase development currently projected to yield about 465 units, with at least 325 expected to be affordable under grant requirements and city goals. She said the city’s target for the overall housing initiative is to meet its Proposition 1/2/3 goals and to add a mix of rental and for-sale homes, including senior and veteran housing near the VA.

The lease carries a nominal $100 payment to satisfy CHFA financing requirements; the purchase-and-sale agreement shows a purchase price of $0 if that path is followed, Chambers said. The deed restrictions on the Rural Homes properties will be recorded for a minimum of 30 years; Chambers said the developer’s resale covenants effectively renew at each transfer so the restrictions endure.

Council adopted the ordinance on final passage by a recorded roll-call vote of 7-0.

The lease is intended to speed delivery of for-sale affordable units on land the city acquired for the purpose of advancing workforce and attainable housing in an infill location, staff said. The developer expects construction of phase 1 this winter and home availability next summer, with a second phase in spring 2027, subject to permitting and financing timelines.

The council did not receive an applicant presentation or public opposition during the public hearing. The ordinance passed unanimously.

Looking forward, staff said the Salt Flats project will continue in phases; the lease is one of several actions intended to demonstrate site control, secure grant funding, and move modular units to the site once permits and infrastructure work are complete.