Crane returns, shipping containers to be removed at Rocky Mountain Building downtown
The shipping containers in front of the Rocky Mountain Building on Central Avenue at the corner with 6th Street are being removed on Nov. 20, according to the city.
The tradeoff, is that the sidewalks will be blocked and a lane of traffic on 6th Street is closed again as the crane was being reassembled on the site on the evening of Nov. 19.
On Oct. 29, Brock Cherry, city planning director, sent an email to Bill Preston, interim CEO of Alluvion, regarding the shipping container.
City directs Alluvion to remove shipping container from Rocky Mountain Building site
In his email, Cherry wrote, “due to ongoing construction inactivity and a significant increase in community complaints, the container must be removed from both the project site and the city’s right-of-way by Nov. 15. Failure to comply will result in the city taking necessary action regarding the container’s illegal encroachment on public right-of-way. It is important to note that a shipping container will not be permitted for pedestrian or site protection, regardless of any potential resumption of construction.”
Cherry wrote that before the container can be removed, Alluvion must provide the city with either a signed letter from a licensed engineer confirming the safety and stability of the building or a proposed alternative to the container, which must be approved by city staff.
Crane being reassembled at the Rocky Mountain Building at 5:15 p.m. on Nov. 19, 2024. Photo by Jenn Rowell | The Electric
City officials told The Electric that there’s a concern about the structural stability of the northeast corner of the building’s upper floor and have, for months, been awaiting an engineering assessment that Sletten Construction was conducting to determine its stability.
The city’s Nov. 15 deadline for removal of the shipping containers came and went and the containers remained onsite as of Nov. 19.
Asked on Nov. 15 if the city had received the necessary information from Alluvion and what the plan was, Cherry told The Electric that “the city met with Alluvion and Sletten this afternoon. My intention is to issue a press release by the end of next week concerning the containers and outlining a timeline for the stabilization of the building.”
The Electric asked again on Nov. 19 for an update.
Meredith Dawson, the city’s new communication specialist responded, “we have some great news. The containers will be removed tomorrow, Nov. 20. We plan to have a press release go out by the end of the week with details about future construction work.”
Maia LaSalle, Alluvion spokeswoman, told The Electric on Nov. 6 that they’d received the letter and “have been in communication with the city and our partners. We are actively working with all parties to resolve the situation in the best interest of patients and the downtown community.”
The Electric followed up with Alluvion on Nov. 19 and LaSalle responded that they believed the city was issuing a press release and did not answer any questions.
During the Nov. 19 City Commission meeting, City Manager Greg Doyon said that city officials had hoped for years that someone would develop the building rather than tear it down.
Alluvion closed on the purchase of the building of the Rocky Mountain Building in February 2019.
Crane being removed from Alluvion project downtown
In February 2023, the city planning office said it has received a permit application from Alluvion for the third phase of the Rocky Mountain project, which was estimated at $25 million, according to the application, and included the interior renovation.
The first phase was asbestos abatement, the second was exterior and structural work.
Last summer, Alluvion paused construction on the building and in September 2023, LaSalle told The Electric that Alluvion’s initial budget was set around $22 million, but had since been revised to more than $40 million to account for inflationary impacts.
“With the expanded budget, we are experiencing a brief funding gap, which is not uncommon for a project of this scale,” LaSalle said in September 2023. “As we all know, businesses go through various cycles, and it is essential to adapt to those changes and be nimble. Alluvion Health is no different. Right now, we are in a position where we need to strategically assess our financial commitments and prioritize our spending.”
In February 2024, Cherry told The Electric that based on a call with Sletten, “the cost of removing the crane is around $30,000. If Sletten has to remove and then reinstall it, the total cost would be approximately $60,000. With the recent transitions at Alluvion things still seem to be in the air. Currently, the city is working with Sletten, hoping that the site will not need to be demobilized.”
The crane was removed in May and the travel lanes and partial sidewalks on 6th Street reopened but the shipping containers remained on Central Avenue.
Doyon said during the Nov. 19 commission meeting that Alluvion was facing “financial challenges” and that the entity was working with their contractor, Sletten Construction, to resolve the financial problems associated with the project.
“So we have been exceedingly patient with them,” Doyon said.
In October 2023, Sletten filed a construction lien for $3,434,462.97 for their work on the Rocky Mountain Building.
According to the lien filed in the Cascade County Clerk and Recorder’s Office, Sletten began providing services and materials under a construction contract on or after April 22, 2022 and last furnished materials and services on Aug. 4, 2023.
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In October 2023, William M. Kronmiller and Company, or WMK, placed a construction lien on the Rocky Mountain Building for $752,102.12 of unpaid bills under their contract, plus interest at the rate of 18 percent per annum from and after Nov. 19, 2023. WMK was contracted for labor and materials for steel and steel erection, according to the filed lien. WMK began providing services and materials on April 7, 2020 and last provided services on Aug. 3, 2023, according to the lien.
In November 2023, Liberty Electric, as a subcontractor on the project, filed a construction lien on the property for $252,631.07 of unpaid bills for services and materials. According to the lien, Liberty was hired for labor and materials for electrical and fire alarm work that they began on April 12, 2022 and last provided services and materials on Oct. 3, 2023.
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In August 2023, SouthernCarlson filed notice of its right to file a lien for unpaid services as a subcontractor to Sletten.
Doyon told commissioners during their Nov. 19 meeting that as Alluvion works through its financial challenges, the city has been receiving questions and complaints about the shipping containers and sidewalkers.
A group of city staff toured the Rocky Mountain Building several months ago, Doyon said, and at that time, Alluvion and Sletten were working on structural adjustments to make it marketable for sale to resolve Alluvion’s financial issues.
The building is listed for sale on Aug. 28 for $3.2 million.
In June, city staff told The Electric that they’d been working with Alluvion and Sletten to get streets and sidewalks operational and safe around the building. City staff said at that time that the roadway had been reopened and half of the sidewalk on 6th opened. Alluvion was maintaining a fenced/barricaded perimeter to keep individuals away from the building for safety and security, staff said.
Staff said over the summer that Alluvion had swept the inside of the conex and planned to power wash it over the summer.
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Also in June, city staff told The Electric that, “the intent is to remove the conexes (shipping containers) and direct pedestrian traffic back onto the sidewalk, but before that occurs Sletten has engaged with the structural engineer to assess the integrity of the building façade on the southeast corner of the property that has not been braced. Sletten was hoping to get the analysis results from the structural engineer in the next month or so,” according to city staff, “and then officials will have a better idea of the path to having a safe pathway on the sidewalk.”
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City staff said told The Electric earlier this year that they were pursuing options to reopen the public rights of way spaces at the request of commissioners.
Doyon told commissioners during their Nov. 19 meeting that the shipping containers will be removed from Central Avenue but the sidewalks will be closed for the next eight to 12 weeks until the structural issues can be resolved.
“It’s still going to be an inconvenience,” Doyon said, but staff felt it was preferable to have a sidewalk closure rather than the shipping containers.
Cherry told commissioners that staff is talking to Alluvion and Sletten to get a finalized timeline.
He told commissioners that he wanted to release a press release this week but “the public wants clarity” so was waiting on details.
On the afternoon of Nov. 22, the city issued a release that said, in full, “earlier this week, the shipping containers associated with Alluvion Health’s construction of the downtown Rocky Mountain Building were removed. In order to ensure pedestrian safety while construction continues, the sidewalk in front of the Rocky Mountain Building will
be closed. Construction, which consists of the shoring and stabilizing of the building, is expected to be complete mid-March.”
“Our prerogative is to assist the property owner,” Cherry said, and is having conversations with the contractor to get it shored up.
Doyon said “that’s the best arrangement” for the immediate issue.
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