Credit crunch boosts cost of redevelopment

From the Colorado Springs Gazette

By RICH LADEN

THE GAZETTE

February 12, 2008 - 7:19AM

Homeowners and lenders aren’t the only ones feeling the financial pain of the nation’s subprime mortgage mess and credit crunch.

A first wave of road, utility and other improvements for the city’s North Nevada Avenue redevelopment project will cost millions more than expected because the Colorado Springs Urban Renewal Authority will have to pay a higher interest rate on money it’s borrowing to fund the work, an authority official said Monday.

The higher cost, however, isn’t expected to delay construction of a Costco Wholesale Club, Lowe’s Home Improvement Warehouse and Kohl’s department store, which will anchor a shopping center that will be a centerpiece of the Nevada project, the official said. The stores are expected to open in summer 2009.

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