Uptown 240 plans for crane removal Thursday as developer works on project financing
The crane towering above Uptown 240’s foundation will come down Thursday, according to Dillon Town Manager Nathan Johnson.
Buffalo Street will be closed between Lake Dillon Drive and residences from 7 a.m. to 7 p.m. Thursday as RMS Cranes removes its property.
“We’re anticipating a full day of activity,” Johnson said.
Uptown 240 owner Danilo Ottoborgo said the subcontracted RMS Cranes needed its crane at another project. He described the removal as temporary while Uptown 240 finalizes its financing. Once financing is received and construction begins, he said a new crane would be brought in.
This is not the end of Uptown 240. Ottoborgo said Wednesday he’s nearly complete with the final items required to get funding to cover costs owed. The town received bank letters from Ottoborgo on March 23 stating a lien had been secured for a bridge loan. The loan would cover incurred costs, he says, and pave the way to close on financing for further construction.
But, Johnson added, “I’m not going to hold my breath because we’ve heard it many, many times before.”
Ottoborgo said Wednesday there would be an all-hands meeting soon to coordinate the closing of the loan. His team has to work with his lender’s internal fund mandate and schedule, he said.
“Getting the crane out of there is going to be overwhelmingly positive for the community,” Johnson said.
He said RMS Cranes confirmed Tuesday morning they would be onsite to remove the crane. Johnson said the town would work with them to ensure a safe removal.
A Dillon staff summary stated Ottoborgo anticipated receiving a bridge loan at the end of 2021 and another construction loan in the first quarter of 2022.
Development on the planned 80-unit luxury condominium development in downtown Dillon has been stalled since developers lost funding at the onset of the COVID-19 pandemic, but they’ve attempted to secure a bridge loan to cover debts owed. The town received bank letters from Ottoborgo on March 23 stating a lien had been secured for the loan.
The property’s owners owed over $157,000 in delinquent taxes as of May, according to town officials, and Uptown 240’s 2020 property taxes were not paid and went to a tax sale. An investor reportedly paid what Uptown 240 LLC owed in taxes, but the lien on those taxes has not been paid off. In addition, Uptown 240 LLC is delinquent on its 2021 taxes due in 2022, town officials said previously.
Should Ottoborgo receive the bridge loan, construction will have until Aug. 30 to resume.
The Uptown 240 project began when the Ottoborgo family demolished its family restaurant to build the luxury housing project.
Ottoborgo had until Dec. 31, 2021 to close on the bridge loan he now expects. Since that deadline passed months ago, the town has reserved the right to remove construction materials from town-owned rights-of-way, according to an amendment to the original development agreement.
The town has been somewhat lenient with the developers, as councilors and Mayor Carolyn Skowyra have expressed wishes to see the project finished.
Dillon Town Attorney Nick Cotton has also stressed in the past the town’s hands have been somewhat tied. The property owner owns the property, and they are entitled to develop it, he said.
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