Brandon Leuallen, The Business Times

The Grand Junction City Council signaled strong support during its Nov. 17 workshop for allowing the city to apply for a $5.07 million federal grant that could finally restore the long-vacant Union Station Depot.

Although the city is not being asked to contribute funding, and the depot owners said they will handle nearly all of the grant preparation work, city staff noted a risk remains that the city could be responsible for repayment if the project falters.

The workshop marked a turning point for a project that has been under development for a decade. The city’s support is also contingent on the group securing bank funding to cover the difference. 

Major turning point for facility

According to the presentation, the Federal Railroad Administration grant would provide roughly 80 percent of a $6.3 million rehabilitation and site expansion, including structural repair, historic preservation, design work and the purchase of land for a much larger parking area.

Union Station Depot co-owner Dustin Anzures told the council the depot project already has key commitments in place.

“We do have a lease agreement with Amtrak for three 20-year terms to return to the depot as the operating train station,” he said. “They have a commitment to relocate into Union Depot.”

He added the project has statewide support.

“We also have support right now from the Colorado Department of Transportation, and their grants team will be compiling the benefit-cost analysis that will accompany the full application,” Anzures said.

Inside the building, the development team plans a hospitality-centered redevelopment.

“It is going to leave us adequate room to program a full-service restaurant, activate the trackside patio, breakfast, lunch and dinner, as well as an upstairs cocktail lounge, a retail place and a public social lounge in the main hall,” Anzures said.

Future rail opportunities

Anzures highlighted long-term rail investments occurring across the West.

“We are no longer in a climate where rail is contracting. In fact, it is the opposite. It is being invested in, it is being expanded,” he said. “We are trying to be way ahead of that curve, so that we can be prepared when the growth makes its way through Grand Junction.” 

He pointed to Utah’s efforts to build an intrastate commuter line that would terminate in Grand Junction, plus federal discussions about reviving Amtrak’s Pioneer Route, which once connected Denver and Seattle.

Parking and site expansion

Parking remains a major challenge.

“The parking lot that is attached to this parcel has 17 spaces. That is clearly not going to be adequate for the amount of activity and the amount of hours that we want to be open for business,” Anzures said.

The grant would allow the project to acquire eight land parcels across the street, creating an expanded parking area that would also serve the planned Colorado Department of Transportation mobility hub and long-term Amtrak travelers. Anzures said a future phase could include redevelopment of another historic rail building into a boutique hotel.

How the agreement may work

Anzures emphasized the depot team would handle nearly all of the grant preparation work, saying the application would be delivered to the city in a nearly complete form, so staff would only need to review it and provide feedback.

“We certainly are not asking the city to make a huge investment of time up front,” he said. 

Anzures also emphasized match funding would be secured without city dollars.

“We are talking to private investors, and we are working with ANB Bank to secure the line of credit,” Anzures said, noting private financing and existing grants are expected to meet the 20-percent-match requirement.

City staff caution about risk

Assistant City Manager Jay Valentine told the council the administrative responsibility is significant if it becomes the federal grantee.

“It is a federal grant, so it is not just a couple-page application. There is a lot of work to be done,” Valentine said. “If awarded, the reporting requirements and all that are a heavy lift as well.”

City Attorney John Shaver said the project carries risk for the city.

“It is a lift, and I would be remiss to not mention it is a risk,” he said. “If you receive the grant and the project does not go as planned, we would have to pay that back,” he said.

Shaver said the city can build protections into its agreement with the depot, but he cautioned that those safeguards are not absolute. If the project were to run into serious problems, the city could still face challenges enforcing the agreement or recovering costs, because legal remedies are not always guaranteed to be effective.

Council members express support

Council member Scott Beilfuss said the depot owners have demonstrated long-term commitment.

“We are looking at about three decades where that building has been deteriorating and slowly going back into the dirt,” he said. “Over the past 10 years, Dustin and Veronica have truly proven that they are going to take this project across the finish line.”

Council member Jason Nguyen said the depot represents major potential for revitalization.

“I think there is a lot of potential there,” Nguyen said. “I am excited to see, as downtown develops, what it becomes.”

Council member Anna Stout emphasized the significance of the deal’s structure.

“This is the first time the city is not being asked to put cold hard cash up,” Stout said. “This is the kind of partnership we should be eager to participate in.”

The other members of council also expressed support for the application. 

Next steps before deadline

Grand Junction City Manager Mike Bennett said staff will put forth a resolution in December authorizing the city to submit the grant application. If the project is awarded, Bennett said the city will then finalize a subrecipient agreement with the depot to establish roles, responsibilities and compliance requirements.

Bennett said the depot team must fully secure its matching funds before the city can submit the application, which is due Jan. 7.