URA Period:  2018 – 2043

Location: The Tejon and Costilla Urban Renewal Area is comprised of approximately 1.5 acres in Downtown Colorado Springs. The Area includes four city lots in a city block and adjoining alley and street rights-of-way. The Area is bounded on the north by the north right of way line of East Costilla Street, on the east by the east right of way line of South Tejon Street, on the south by the south right of way line of East Cimarron Street, and on the west by the west right of way line of South Nevada Avenue.

Plan Goals: The main public purpose of the Tejon and Costilla Urban Renewal Plan is to reduce, eliminate and prevent the spread of blight within the area through redevelopment by private enterprise. The plan sets goals to achieve this through implementing established objectives for the area and assisting with the eligible costs of redevelopment, promoting economic growth and private investment through Tax Increment Financing. Establishment of the urban renewal area will take advantage of improving conditions and the upcoming development cycle by focusing urban renewal efforts in a small area. The urban renewal designation allows new sales and property tax revenues generated by the project to be used to fund sidewalks, utility and other public improvements at the site. The project expands both the City and County’s property/sales tax base and creates new opportunities for the collection of Lodgers and Automobile Rental Tax (LART) dollars. It is anticipated to create over $200,000 in LART tax annually.

The eight-story Marriott branded hotel is envisioned with 262 rooms, 4,000 square feet of meeting space, large suites to accommodate families or other groups and a two-level, underground parking garage with 224 spaces that will be open to the public as well as hotel guests. Other hotel amenities include an indoor pool and fitness center, a street-level, indoor-outdoor restaurant, an outdoor courtyard and a rooftop restaurant and outdoor bar. Hotel Equities will employ about 175 full-time people and 60 to 75 part-time workers. The construction will result in an estimated $117 million in annual economic activity over two years. The economic impact of the hotel once completed will be $35 million a year.