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The original item was published from 12/16/2022 9:57:00 AM to 6/1/2023 12:05:00 AM.

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Posted on: December 14, 2022

[ARCHIVED] Blog: SPECIAL CITY COUNCIL MEETING: Tuesday, December 13, 2022

Montrose, CO — City Councilors held a special meeting Tuesday afternoon, December 13, to consider a pair of incentives for two local businesses making long-term investments in Montrose. 

Councilors Barbara Bynum, Dave Frank, Doug Glaspell, J. David Reed, and Ed Ulibarri met in City Council Chambers along with city staff. 

The following is a summary of the primary topics discussed during the meeting. 

Watch the meeting here.

ADAPTIVE REUSE PROJECT AND BUSINESS INCENTIVE AGREEMENT FOR THE POMONA BREWING COMPANY BUSINESS EXPANSION PROJECT 

City Councilors were presented with the details for an adaptive reuse project and a proposed business incentive agreement with the owners of Pomona Brewing Company. The applicant for the incentives, S&J Development, is working with their tenant, the Pomona Brewing Company, to transform the property located at 830 North Townsend. The incentive funding will help pay for a commercial kitchen in the new brewery.

Councilors met with the owners and developers of the project to get more information about the new brewery. The owners plan to begin with a small brewpub that will provide a limited menu with the hope to expand down the road. The brew pub’s commercial kitchen will provide food to go or be consumed on the premises along with their craft beer. 

  • Total Project Costs - $1,108,909
  • Total Kitchen Costs - $126,935
  • Electrical $32,348
  • Plumbing Grease Trap, Floor Drains, Etc $15,825
  • HVAC Ansul Hood, Make Up Air $18,500
  • New Floor Tile Kitchen Grade $7,506
  • Walk Up Counter Shutter $875
  • Drive-Through Service $4,250
  • FF&E Griddle, Fryers, Sinks, Refrigeration $30,391

Total requested (less than 10% of Project Cost) amount: $109,695

The council then debated the pros and cons of the project including the potential sales and restaurant tax collection that would benefit the city. The owners estimate their project will create 8 new jobs at the opening of the brewery. 

The council accepted public comment before voting 3-1 to approve the incentives package. The funds will come from remaining Downtown Development Authority (DDA) TIF funding. 

With the council’s approval, $109,695 was granted for the support of the structural improvements for the commercial kitchen to be used by the Pomona Brewing Company. The kitchen will be the property of S&J Development and will remain with the building.

Other key figures include:

  • Owner Contribution: $1,127,036
  • Traditional Loan Funding: $90,000
  • Region 10 SBA Loan: $50,000
  • S&J Business Loan for Build-out: $290,449
  • Pomona Brewery Contribution: $40,000

BUSINESS INCENTIVE AGREEMENT FOR THE RATHBONE HOTEL

City Councilors were presented with a proposal for a business incentive agreement with the owners of the Rathbone Hotel, currently under construction in downtown Montrose. The incentive agreement provides funding for fire suppression systems, some masonry work to preserve and rehabilitate the exterior and historic architectural aspects of the building, and streetscape improvements around the site. 

The Rathbone Hotel is the former historic Knights of Pythias building, located at 33 S Cascade Ave. The building was recently added to the city’s historic register while rehabilitation work continues to transform it into a new boutique hotel. 

The total amount of the requested incentives package topped out at $500,181.00. 

  • Total Project Costs: $5,181,538
  • TIF Eligible Expenses: $893,750
  • Masonry (Historic) $720,570
  • Historic Windows (Above Standard Window Cost) $70,000
  • Fire Suppression $53,900
  • Exterior Improvements (Sidewalk, Landscaping, etc.) $49,280

Total Requested (10% of Project Costs) amount: $500,181

Beginning in October work began to transform the vacant structure into a boutique hotel set to open in 2024. The building’s new owners said renovations will brighten the empty building's appearance and add 17 upscale boutique hotel rooms to downtown Montrose. The second level will include 10 "lofted" suites which will take advantage of the 26-foot vaulted ceilings in the old meeting space of the Knights of Pythias. 

The hotel’s name, the Rathbone, is a nod to Mr. Justus Rathbone, the founder of the Knights of Pythias organization. 

The building’s co-owner, Clay Bales, of KM Hotels, met with the council to provide more information about the project. Mr. Bales expects the hotel to create 12 new jobs in the community with projected annual revenues of $1.2 million. 

During the public meeting, the council voted to enter into an executive session to discuss the matter with the city attorney and city administration. After exiting the executive session the council then voted unanimously to approve the incentives package. The incentives will come from remaining Downtown Development Authority (DDA) TIF funding. 


Building renderings show an updated facade with a focus on preserving the historic building’s original character. Hotel rooms will feature minimalist decor and take advantage of the second story’s large windows to utilize natural light. 

Additional project details are listed as follows:

  • Owner Contribution: $1,800,000
  • Traditional Loan Funding: $3,300,000
  • Region 10 Funding: $400,000
  • Jobs Created: 12
  • Yearly Budget for Salary: $375,000
  • Total Yearly Projected Revenue: $1,250,000

The council then added an agenda item to discuss its next regular meeting on December 20, 2022. Due to holiday travel, the council will not have a quorum to approve any agenda items on that date. The council decided to cancel the December 20, 2022, meeting altogether. 

Instead, it will hold a special meeting, before the Monday, December 19, 2022, Work Session, at 9 a.m. to discuss and vote on the 2022 Supplemental Budget and the city's recycling contract for 2023. Both those meetings will be recorded and broadcast on the city's cable channels as well as be available for on-demand viewing on the city's YouTube channel. 

•••

All City Council meetings are recorded and made available online via the city’s website and cable channels 191 for Charter subscribers and 970 for Elevate subscribers. Replays of council meetings are also broadcast at 6 p.m. on the same channels on days that the council is not in session. 

In addition, each regular meeting is archived on the City of Montrose’s YouTube channel

 Residents can watch all regular City Council meetings and work sessions live or on-demand through the city’s Public Meetings Portal.

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