The concrete foundation and rebar of an unfinished condominium complex in the Dillon town core could be ripped out and rebuilt after the town this week reached a deal with a developer to resume the project.

The Dillon Town Council during its meeting Tuesday, Sept. 10, voted unanimously to approve a development agreement with Developer Jake Porritt to allow work to resume on the 80-unit condominium complex formerly known as Uptown 240.

The previous development agreement for the project – which broke ground in 2019 but stalled when the original financiers backed out during the pandemic – is null and void after Uptown 240 LLC filed for bankruptcy last year. Porritt purchased the property for $12.75 million during a bankruptcy sale earlier this year.

Porritt is the developer who also has other major redevelopment plans in Dillon, including plans to construct a controversial structure overlooking the Dillon Reservoir with 200 condominiums, three restaurants and retail space and another structure across the street from that with workforce housing, a parking garage and a grocery store.

Dillon town engineer Dan Burroughs motioned out the window of town hall to the unfinished Uptown 240 project across the street Tuesday as he told the Town Council that “a development agreement basically just sets up the framework for them to build in town.”

Burroughs outlined the terms of the development agreement, including provisions related to required public improvements like gutters, sidewalks and the installation of a new fire hydrant. He noted that the project includes nine units, most of which are smaller than the other units in the building, that will be sold at market rate but with a deed-restriction requiring the owner to work at least 30 hours in the county.

To help the developer get the long-stalled project off the ground, Burroughs said that the town, through the development agreement, has agreed to “essentially loan” the Porritt Group $1 million.

Burroughs noted that the developer can only spend that $1 million on demolition costs, costs associated with updating the project to meet current building codes, and to mobilize the crane for construction. The developer would have to spend the money up front and then provide receipts to the town for reimbursement, he said.

In exchange for the $1 million “loan,” Burroughs said that Porritt agreed in the development agreement to impose a covenant on each unit which will generate a 1% real estate transfer assessment of that unit in perpetuity. The 1% real estate transfer assessment would go toward the town’s housing fund, he said.

“Over time that 1% for the 80 units, every time they get sold, we will get 1% back and that includes the initial sale,” Burroughs said. “Over time that will generate more money than we’re putting into the project.”

Council member Renee Imamura commented, “having the developer offer this, and in perpetuity too, is great for the town of Dillon to put some money back into the town.”

Porritt said that the 1% real estate transfer assessment was “so generous in terms of the amount of capital we’re discussing” that he had to have multiple law firms “give us an opinion letter that says it’s OK for us to do.”