RIVER RUN COLORADO - FREQUENTLY ASKED QUESTIONS
IMPORTANT NOTE: This FAQ replaces earlier FAQs on this website. There have been substantive changes to the FAQ. Earlier versions should not be relied upon. This FAQ is provided as a convenience to persons interested in acquiring a home at River Run. It is not intended as a substitute for full and careful review of all documents related to such purchase, including the Purchase and Sale Agreement for a home and the Parcel Ground Lease for a parcel of land. Information contained in this FAQ is non-binding and subject to the terms of the actual documents governing the purchase. This information is subject to change without notice.
Revised Spring 2021
River Run Colorado’s Innovative Financial Model
Our goal is to make River Run Colorado the most affordable and highest quality residential community on Colorado’s Western Slope. To achieve affordability and quality, the developer/landlord, River Run Colorado QOZB, LLC, will:
Sell the homes at its cost, eliminating the usual new home-builder profit mark-up and providing a significant up-front financial saving to the River Run Colorado home buyer.
Lease the land on which the home is located, instead of subdividing the property and requiring the home buyer to buy the land with the house.
The benefits of this financial model are the following:
- The model allows the developer/landlord to absorb all the usual expenses of development -design, infrastructure, roads, fees, landscaping, brokerage, marketing, construction interest and multiple profit mark-ups– AND, rather than taking the profit on the sale of the home with the land, to recover its investment over time by leasing the land to the home buyer.
- If the developer subdivided the land and sold the individual parcels to a home buyer, those costs and multiple profit mark-ups would be added to the land cost to be paid by the home buyer, very likely resulting in an added cost for the land that could amount to as much as $110,000, bringing the cost of the home with the land to $245,000.
- In the prevailing low interest rate environment, qualified borrowers could expect a bank payment on a 30-year fixed rate mortgage of approximately $450 per month. After adding the monthly land lease of $650, the monthly cost of enjoying a stylish, high-quality new home would be an affordable – and very competitive — $1,100.
- Under the long-term lease model, the developer/landlord has an obvious incentive to make River Run Colorado a high-quality income producing property, allowing it to forego profit on the sale of the home.
- We expect that this financial model will disprove the myth that homes subject to a long-term land lease will not increase in value. Since the homes are true, site-built homes on a foundation, incorporating materials, construction and features not normally found in homes of this size and price, the value of a well-maintained home in River Run Colorado should keep pace with the appreciation of larger homes in the area. Importantly, the homes at River Run Colorado are designed and built to stand the test of time far better than similarly sized modular, manufactured, or park model homes to which they are frequently compared. Finally, once the community is fully developed, a waiting list of buyers seeking to become part of the community can be anticipated.
- Although a long term-land lease is not common in Colorado, it is used widely in California, Arizona and Hawaii.
Can I finance the purchase of my River Run Colorado home?
Colorado mortgage bankers have offered qualified home buyers attractive mortgage terms. Use the Contact page on our website to request further information.
How much is the monthly parcel ground lease and what are its advantages?
The 60-year parcel ground lease is $650 per month. The ground lease allows affordable access to a home without the need to finance the expensive land and land development costs, dramatically reducing the down payment requirement and monthly mortgage payment. If you sell your home in the future, the remainder of your 60-year lease would be assumed by the buyer. The 60-year term of the lease facilitates your ability to sell a home by leaving the new buyer with a long enough lease term to obtain attractive financing.
What does the monthly parcel ground lease cover?
The lease payment covers community management services and maintenance, including road maintenance, irrigation and fertilization, plus maintenance of plants, trees and shrubs on common areas and individual leased parcels. Leaf and snow removal on common areas is also included. River Run Colorado provides a large, fenced dog park exclusively for home owners, and home owners have access to the Colorado River and the KOA boat ramp.
What recurring expenses will home owners incur?
In addition to the initial $650 per month parcel ground lease charge, home owners are responsible for maintaining annual home insurance (currently approximately $50 per month) and for paying real estate taxes on the assessed value of the home (currently approximately $60 per month). Additionally, homeowners are responsible for monthly water, sewer and electricity charges. Electricity usage will be separately metered for each home and billed directly to the homeowner. Homeowners will be required to contract with the Town of Silt for curbside trash pickup – currently $25 per month. Conduit will be available at each home parcel for Comcast cable TV, internet and landline phone service at the homeowner’s option and additional cost.
Who is the Developer of River Run Colorado?
River Run Colorado QOZB LLC (RRC), a qualified opportunity zone business, is the Developer of the River Run Colorado residential community that is adjacent to the associated “Glenwood Springs West/Colorado River KOA Holiday”, both located in the Town of Silt, Garfield County, Colorado.
What are the homes like?
- They are not modular homes or factory-built “tiny homes” on a wheeled chassis
- They are traditionally constructed homes, built on-site, on a foundation, to the International Residential Building Code
- The homes have 670 square feet of living space and a full-height second bedroom upstairs
- They have 96 square foot front and rear covered patios at ground level, plus a 198 square foot fire-pit and seating area in front of each home
- Other Features:
- A floor-to-ceiling stone wall with a heat-generating fireplace
- Beam and rafter vaulting throughout, including the upstairs bedroom
- A walk-in closet in upper bedroom
- 125-amp electrical service
- Three mini-split air conditioning units
- High-density spray foam insulated roof and walls
- An easy to negotiate spiral stair
- Real wood beams and trusses
- Tongue and groove wood panel interiors
- High quality appliances
- Solid surface countertops
What are the dimensions and features of the homes that are now available for purchase at River Run Colorado?
- The homes are 12 feet wide and 40 feet long
- They have 670 square feet of living space and include a living/dining area, kitchen, full bathroom and bedroom on the first floor and a fully-enclosed second bedroom on the upper floor
- The homes are generously spaced 20-24 feet apart, with attractive screening landscaping provided
- The homes come with a refrigerator/freezer, range with oven, microwave oven, dishwasher, stack washer/dryer, surface lighting and three mini-split heating and cooling units with a fan only mode
Additional Storage Space
A self-storage facility on approximately three acres along the north and west boundaries of River Run Colorado is under consideration for development. If built, such a facility would be designed to provide frontage road screening and highway noise attenuation for residents, as well as indoor parking and self-storage of personal goods for residents and the general public.
What public transportation is available to and from River Run Colorado?
The Roaring Fork Transportation Authority provides service from the Fire House in Silt west to Rifle and east to West Glenwood and then south to Carbondale and Aspen.