By Christina Calloway
Just months after the Portales City Council finalized plans to transfer the city’s ownership of the Portales Inn, the reconstruction of the building into workforce housing has been delayed a year for lack of funding.
The building was to be transferred to Steve Crozier of Tierra Realty, who owns Hotel Clovis, in May but Crozier failed to secure a state Mortgage Finance Authority grant to fund the project.
This pushes the projected $12 million project supposed to create 68 additional households in Portales to May of 2017.
Crozier didn’t return a request for comment Monday.
Portales City manager Doug Redmond said the program is competitive and that 13 out of 32 applicants were funded.
“(Crozier) only missed the funding threshold by a few points,” Redmond said.
While Crozier waits another year to apply for the grant, the city will remain the owner of the Portales Inn.
Though the city has no financial ties to the project, it remains the facilitator of the building transfer process. The building was previously owned by the Maxwell group but owner Bob Morrow died last year.
Redmond said there aren’t many other funding opportunities for the project and the city will most likely have to wait another year before any action is taken at the site.
“We are simply holding the building until (Crozier) gets funding,” Redmond said. “It’s still a great economic development project.”