A developer presentation on the future of Uptown 240 scheduled for the Dillon City Council meeting on Tuesday did not go as planned. The developers have alerted the board that they cannot speak openly yet, which will delay their update until the next Dillon City Council meeting on September 6.
“We won’t have a presentation as we planned,” City Manager Nathan Johnson said.
The new lender told the city it wanted to be very transparent but was unable to be for Tuesday’s meeting, Johnson said.
“I’m very discouraged about this,” Johnson said of the canceled presentation. The city remained in the dark about the project, he added.
Development of the planned 80-unit luxury condominium project in downtown Dillon halted in April 2020 when the pandemic began as the project lost significant amounts of funding.
Since then, the only major action taken at the site has been the removal of the red crane that towered over the property at the corner of Buffalo Street and Lake Dillon Drive. The developers have spent the last few months seeking funding and finding a lender. RMS Cranes removed the crane in the first half of June. Danillo Ottoborgo, president of Uptown 240, described the move as temporary, saying he plans to resume construction as soon as finances can be secured.
Ottoborgo wrote in an email Tuesday that he expects to receive final loan details this week.
“After completing this step, we will be over 90% of the closing process with only legal documents remaining,” he wrote. “We are looking forward to receiving one of our last files requiring acceptance.”
On Wednesday, Dillon Mayor Carolyn Skowyra said the city still wants to work with developers to see the project completed.
The developer’s message remains similar to what they’ve said about the project over the past year, saying the project is moving forward. Ottorborgo said in early June that he had nearly completed the final elements needed to secure funding to cover costs owed on the project. The city received bank letters from Ottoborgo on March 23 indicating that a lien had been obtained for a bridging loan. City staff said the loan would likely cover costs incurred and pave the way for future construction funding to close.
Johnson said in previous council meetings that the new developer seemed more interested in communicating with the city, though he noted Aug. 16 that the city was still somewhat in the dark.
The project is coming to an end. If Ottoborgo receives the bridging loan, construction will have until August 30 to resume, according to an agreement with the city council, but that will not be the first deadline the city has given the project. Previously, Ottoborgo had until December 31, 2021 to complete the bridging loan. An old Dillon staff summary indicated that Ottoborgo expected to receive a bridge loan at the end of 2021 and another construction loan in the first quarter of 2022.
Since last December 31 without Ottoborgo closing the loan, the city has reserved the right to remove building materials from city-owned rights-of-way, according to an amendment to the original development agreement. The city did not use its right to remove any equipment. The city won this right after the passage of December 31 without a bridge loan being guaranteed.