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Dos Rios developer asks Grand Junction for one‑year extension as market stalls
Summary
Developer May Riegler requested a one‑year extension on remaining Dos Rios land purchases, citing post‑pandemic borrowing and construction costs; city staff supported the extension and will bring a resolution to amend the purchase and sale agreement to the Nov. 19 council meeting.
May Riegler, the developer for the Dos Rios project, asked the Grand Junction City Council for another extension on the remaining land purchase deadline at the Nov. 3 workshop, citing higher borrowing costs and soft market conditions that have delayed vertical development.
Kevin Riegler, representing May Riegler, said the developer has been involved with Dos Rios for roughly five to seven years and has already invested "almost $7,000,000" in the site. He told the council the project’s timing was derailed by national construction cost and interest‑rate increases after the COVID period and that lenders and investors remain cautious for large projects. "We kind of just missed out that window," Riegler said, urging patience and continued partnership with the city.
City staff and the city attorney described the financing structure and the city’s exposure if development does not materialize. Jay (city staff) summarized the GID bond structure: project proceeds of about $10.7 million were issued to reimburse the city for infrastructure; annual debt service was presented as $705,000 for 2025, increasing to $936,650 in 2026 and to about $1,033,000 in 2027. Staff noted bond covenants that protect bondholders (including a payment‑in‑lieu requirement when tax‑exempt nonprofits locate in the district) and said refinancing or development would be required to relieve debt pressure.
Council members asked about metrics and milestones that would signal readiness to close, and whether smaller parcels or retail could move sooner; the developer said some townhouses and other smaller elements remain permitted and in progress, and that flagship projects (hotel, apartments) are likely needed to spur the retail. Several council members expressed support for an extension rather than forcing a closing that might jeopardize the overall vision.
Staff said they will prepare a resolution to amend the purchase and sale agreement and bring it to the Nov. 19 council meeting for formal action. No sale or final amendment was approved during the workshop.
