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Douglas County approves $500,000 deferred loan to Union Park (La Quinta) affordable housing project
Summary
The Board approved a $500,000 deferred loan and deed of trust to preserve 30 years of affordability at Unity on Park (formerly the La Quinta in Castle Rock), the renovated housing for people with intellectual and developmental disabilities.
Maureen Waller, a county staff member filling in for Dan Avery, asked the Board of County Commissioners on Dec. 17 to approve a $500,000 deferred loan between Douglas County and Unity on Park Street LLLP to complete renovations at Unity on Park (formerly the La Quinta hotel) and ensure affordability for 30 years via a deed of trust. "This request is seeking the approval of the $500,000 for a deferred loan agreement between Douglas County and Unity on Park Street," Waller said.
Waller explained the local history: in October 2022 the county allocated $6.4 million in American Rescue Plan Act (ARPA) funds to acquire the La Quinta Hotel; the property was conveyed in March 2023 to Wellspring Community for conversion to affordable apartments for individuals with intellectual and developmental disabilities. As recorded in the conveyance memorandum of understanding, Union Park (the project name) was obligated to repay $3.4 million to Douglas County. The agreement before the board restructures $500,000 of that obligation into a 30-year deferred loan and allows the remaining $2.9 million obligation to be paid back to the county.
Arty Lail of the Douglas County Housing Partnership described cost overruns: "The total cost overruns actually exceeded $600,000," he said, and asked the board to defer $500,000 of the repayment so the project can absorb the overruns without jeopardizing completion. Nicole De Vries, executive director of Wellspring Community, told commissioners residents began moving in Dec. 2 and described early tenant experiences. One new resident, Damon, told the board, "This is my apartment... I feel so free. I feel like I can just make my own decisions." Several public commenters praised the project.
The board moved and seconded a motion to approve the loan agreement and adopted it by voice vote.
Why it matters: the loan and deed of trust preserve long-term affordability for a project designed to serve residents with intellectual and developmental disabilities and complete renovation work facing reported cost overruns.
Funding and timeline: County staff said the ARPA-funded acquisition and subsequent state grants covered most repayment; the board restructured $500,000 into a 30-year deferred loan. The project had a ribbon-cutting scheduled for Dec. 19 and residents began moving in Dec. 2.
