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Loveland council to consider sale of former county building

LOVELAND — City of Loveland economic developers will ask the city council, acting as the urban renewal authority, to approve a sales agreement for the former Larimer County office building at 205 E. Sixth St. in downtown Loveland and a lease for an unconnected parking lot near the building. If approved on Tuesday, the city would receive $450,000 from PDQ Properties LLC, a Loveland property developer, which plans to spend $2 million to upgrade the building and make it available for multiple office and retail uses. The parking lot, at 100 E. Sixth St., would be leased for $10 for a nine-year, 11-month term, with two optional renewals, but PDQ would pay $10,000 per year for maintenance of the lot. The lot includes about 40 parking spots. The building was first constructed to house the Loveland Public Library in 1967. When a new library was built in 1987, Larimer County bought it for $475,000 for its operations. The county built a new office building in 2018 and sold the building back to the city for $732,000 plus $271,000 for the parking lot. The city intended to sell them to a company that would redevelop the building and perhaps establish a headquarters operation there that would employ numerous workers who, it was believed, would help to support downtown retailers and restaurants. An appraisal of the building placed its value at $400,000 to $580,000. The city found a company, LPR Construction, a division of Longbow Industries, that wanted to move there. It offered to pay $732,000, with the city extending a $750,000 incentive agreement tied to redeveloping the property and adding employees to the operation.  The deal fell through, which forced the city to seek proposals from other potential buyers. A potential deal to Logiq Health LLC, a Texas company, for $2.1 million also fell through. PDQ, owned by Duke Marquiss and Kirk Johanson, has operated in the city for many years and has rehabilitated multiple similar buildings in Greeley, Fort Collins and Loveland, according to city documents distributed to the council.  The company plans to create separate leased spaces within the building for small offices for professionals such as accountants, attorneys and medical uses. It may create business condominiums if there is interest by users in buying space within the building. A potential retail or restaurant space may also be created on the first floor, documents said. The buyers would hope to have the project leased out within two years. No incentives or contingencies are offered, city staff said. If approved, the deal could close by the end of August, documents said. © 2020 BizWest Media LLC
Source: BizWest

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