On July 23, Town Manager David Harris informed The SUN via email that “it’s official,” the Town of Pagosa Springs was the successful bidder for Village Pointe Condominiums.
Harris explains that the town was the backup bidder for Elk Run Townhomes and Masters Place Condominiums.
The town plans to use any acquisitions from what it’s calling “Project 102” to increase the supply of workforce housing in the community.
Village Pointe Condominiums would add around 32 two-bedroom units to the workforce housing rental market.
Harris explained that, initially, the town would become the landlords of the condos, but that the town has not yet worked out the best long-term “organizational structure for this project.”
He mentioned organizing a “housing corporation” or using a property management company to run the day-to-day operations of the condos as possible ideas that the town could consider for long-term management.
The town’s successful bid for the Village Pointe condos was $4,905,472, according to documentation filed in U.S. Bankruptcy Court for the District of Colorado.
The debtor is listed as Village Pointe Property Owners Association, which are made up of timeshare owners whose properties are managed by Club Wyndham, according to the documentation.
Harris explained that the town is the “backup bidder,” and would only be able to acquire the other two properties — Elk Run and Masters Place — if the “winning bidder does not come through.”
In a phone interview, he explained that he did not expect the town to succeed in the acquisition of those two properties, adding that the successful bidders for the properties are serious about acquiring the buildings.
Harris explained that “there are many months to go before the town can close on the property.”
He mentioned the “legal complexity of the numerous owners” as the reason for such a long closing period, adding that “it will take until at least March to complete the closing” of the property.
In the email confirming the town’s successful bid for Village Pointe, Harris thanks Housing Coordinator Jeff Sams and Development Director James Dickhoff for their work on the issue.
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