Colorado Springs City Council approves annexation of 108-acre parcel

A 108-acre parcel of land with almost 700 feet of frontage on Interstate 25 has been approved for annexation by the Colorado Springs City Council.

The move clears the way for a partnership headed by Vince Colarelli of Colarelli Construction and Nevada-based investor Ski Broman to build a two-phased 550,000-square-foot office/industrial complex just south of the Harrison Interchange. Once completed, the office and industrial center will represent an investment of about $75 million.

The site is zoned Planned Industrial Park II and includes 65 acres of industrial property and 43 acres of open space. Entryways will probably be off Janitell Road and off Executive Circle.

"We're designing it not only to be functional with wide turn- arounds for trucks and easy access onto I-25 from Janitell Road, but we're offering upgraded architecture and a quality that so far doesn't really exist in Colorado Springs like it does in Denver," Colarelli said. "We are working up pricing for a couple of prospects."

Vineyard LLC expects the purchase of the property from the Gray Family Trust to close early next month. The former owners have operated a golf course and winery on the south side property since 1999.

Stan Kensinger and Jim DiBiase of the Olive Real Estate Group will handle leasing and sales for the project.

"It's close to decision makers, to I-25 and to the Colorado Springs Airport, all attractive to industrial users," Kensinger said, adding Vineyard Commerce Park will be the first covenant- controlled commercial park in the city.

Prior to acceptance by the city, the property had been under careful scrutiny because Federal Emergency Management Agency maps indicated that more than 40 acres were in a flood plain. As it turned out, the maps were erroneous and only about six acres at the property extreme north and extreme south ends were subject to flood plain restrictions, said city planner David Litzleman.

Colorado Springs Utilities plans to set up a demonstration project for flood plan management in part of the adjacent open space.

"This annexation request was really pretty smooth," Litzelman said. "The initial concept plan has been approved, and once the property closes, I imagine the new owner will submit a more detailed development plan. The city certainly appreciates adding property that will generate property and sales or use tax revenue."

Infill annexations like the Gray property are becoming increasingly rare. Litzelman said that only a 65-acre property, which includes six Pride Soccer fields and is zoned for office and retail uses, is still up for review.

Rumors have been circulating that part of the Gray land would be donated to a nonprofit organization, but Colarelli wouldn't confirm that possibility.

"We're focused on getting phase one under way, possibly as early as this summer, depending on the market," he said. "And if all goes well, we could break ground on phase two next year."

Colarelli acknowledged that leases must be signed before breaking ground on the first phase, but said he's not afraid of the current bearish economy.

"It's a large parcel right in the middle of several distribution routes and close to the airport and downtown," he said. "Even if build-out takes longer than expected, it's still a great project for investors and tenants."

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