Council approves lease and LOIs for 4.42‑acre Salt Flats affordable housing parcel; Brickwell moves to seek LIHTC financing

Grand Junction City Council on Aug. 20 adopted an ordinance and two companion resolutions approving a 99‑year lease for approximately 4.42 acres of city‑owned Salt Flats property and authorizing nonbinding letters of intent that would allow Brickwell LLC to pursue Low‑Income Housing Tax Credit (LIHTC) financing for an affordable housing project.

The ordinance (Ordinance 52-75) authorizes the city manager to sign a lease for roughly 4.42 acres at 45028 Road to Brickwell. Council adopted the ordinance on final passage by a unanimous 7–0 vote. Two resolutions followed by unanimous votes: one (Resolution 51-25) authorizes the city manager to sign a letter of intent to explore a joint‑venture relationship contingent on Brickwell’s LIHTC award; the other (Resolution 52-25) authorizes a letter of intent describing a proposed in‑kind land contribution valued at $2,520,000 and a purchase/sale pathway for roughly 4.42 acres, contingent on financing.

City staff and the applicant described the actions as the next step in a larger Salt Flats master plan. The Salt Flats site is a 21‑plus‑acre property the city acquired and for which the city and state have invested in backbone infrastructure including extension of Grand Avenue and 28 Road and utility installations. The master plan aims for several hundred housing units across the full site; the parcel before council is intended for a LIHTC‑funded multifamily development that Brickwell expects to propose as a 4% tax credit project with roughly 144 affordable rental units on the leased lot. Staff said the broader Salt Flats concept requires a minimum of 324 units under the city’s CHFA (Colorado Housing and Finance Authority) grant agreement; Brickwell’s conceptual site plan and master plan contemplate up to about 450 units at full build‑out across the entire property.

Under the terms presented by staff, Brickwell must have a funded and permitted project within five years of the lease start date or the lease may be canceled. Council’s action tonight does not finalize any sale or joint venture; both letters of intent are conditional and intended to allow Brickwell to proceed with a CHFA/LIHTC application due Sept. 1.

Tamara Allen, the city’s community development director, described the city’s housing needs assessment and the city’s strategy to leverage municipally owned land to help produce affordable housing. She told council the target on the site included a mix of income bands, with a proposed average at about 58% of Area Median Income (AMI) and units proposed to range from 30% to 70% AMI. Applicant representative Tyler Elick said third‑party market and needs analyses will be part of the LIHTC underwriting and that tax‑credit investors provide guarantees that support project financing.

Council members asked about alternatives and felt it was appropriate to authorize nonbinding LOIs while preserving final approval authority for any sale, joint venture or tax‑exemption arrangement. City and applicant representatives said they had discussed the possibility of other vehicles such as involving the local housing authority as a fallback if a city partnership structure proved infeasible; they also emphasized that final legal structuring and any revenue or tax‑exemption decisions would return to council for approval.

The three actions passed unanimously. The immediate next step is for Brickwell to finish its CHFA/LIHTC application (deadline Sept. 1) and advance subdivision and permitting work; council will consider any final transaction documents if Brickwell secures funding.

What this means: If Brickwell is awarded LIHTC and other financing, the Salt Flats site could deliver a large block of new affordable rental units in coming years. Council’s actions tonight set the municipal approvals in place to enable the developer to complete financing applications and to negotiate final agreements if funded.