The city of Salida is planning some big changes that will clean up a years-long blight on the downtown community, while addressing the area’s workforce housing shortage.
Salida has completed a lengthy process to acquire two properties in downtown Salida with the plan to reuse the properties for affordable workforce housing.
Relying on the eminent domain process, the city has acquired adjacent properties at 102 D Street and 223 East 1st Street, the southwest corner of the intersection of 1st Street and D Street.
The existing dilapidated structures on the sites are in extreme disrepair. In fact, they have been the subject of numerous municipal court complaints against the previous owners – John Mehos and PMM, LLC. The buildings have sat empty since 2017 when they were deemed uninhabitable by the Chaffee County Building Department and Salida Police Department. In fact, in May 2018, nine former tenants filed suit against the owners. Among the code violations; no heat in the apartments, raw sewage leaking in the basement, no hot water, and rodent and insect infestations, including bedbugs.
Apartments at 102 D Street (left) and 233 East First Street (right) now acquired by City of Salida . Merrell Bergin photo
With both properties now the possession of the City, the first work will be to remove the existing structures and prepare the property for possible development as new affordable workforce housing.
“With the current ongoing housing crisis affecting residents, businesses, and workers in Salida, this is a crucial acquisition to provide long-term relief through affordable housing,” said Mayor Dan Shore. “The City Council and I have worked diligently through the eminent domain process to acquire these properties to give opportunities to our workforce.”
Eminent domain is a process by which a local government uses its rights to acquire private property for public use, upon payment of just compensation to the property owner. On May 2, 2022, the City of Salida participated in a valuation hearing to determine the amount of just compensation to be paid to the property owner. During the valuation hearing, an independent commission heard evidence from real estate experts about the value and condition of the properties and found the fair market value to be $620,000. The City deposited this amount into the court’s registry on May 18, 2022. This payment finalized the transaction, ensuring that the property is now in the public domain and that it will be used for public purposes.
Shore explained that the city’s use of eminent domain was not a decision made lightly by the City Council. “But it was the only choice to take control of an unfortunate situation and turn it into a positive outcome for Salida. We realize that this was a long process, and appreciate the community’s faith in the City Council’s decision to pursue an eminent domain action to take control of our destiny to provide housing for our workforce.”
Featured image: The D Street Apartments at the corner of D and First streets in Salida remain unoccupied since being declared uninhabitable in May 2017. The property, as it looks today, five years later. Merrell Bergin photo
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