RIVER RUN - FREQUENTLY ASKED QUESTIONS
Revised February 2020
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 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.
Who is the developer of River Run?
RRC QOZB LLC (RRC) will develop the River Run residential community adjacent to the associated “Glenwood Springs West/Colorado River KOA Holiday” RV park, in the Town of Silt, Garfield County, Colorado. RRC has moved away from its original plan to sell “tiny homes” because of their space limitations, regulatory issues and limited financing options. The homes now being offered at River Run will have the same stylish features as the “tiny home” that has been on display at the Silt KOA and available for viewing on the River Run website, BUT will be significantly larger and improved.
What is your vision for River Run?
- When fully built-out, River Run will consist of:
- 70 fully-landscaped home parcels of approximately 2,500 square feet each, available for long term lease in a full-service community (parcel landscaping is included in the price of the home)
- 70 stylish, 650 square foot, two-bedroom homes, built on the 70 home sites using conventional construction methods, available for purchase with attractive financing options
- Generously sized parcels with homes spaced 20-24 apart and fully landscaped, with a fire-pit and parking for two cars
- All this on approximately seven beautifully landscaped and well-maintained acres adjacent to the KOA, with access to 3,000 feet of frontage along the Colorado River
What will the “improved” homes be like?
- They will no longer be “tiny homes”, factory-built, legally considered a recreational vehicle, delivered to Silt on a wheeled chassis and limited to 400 square feet of living space with a 120 square foot half-height loft
- They will now be traditionally constructed homes, built on-site, on a foundation, to the International Residential Building Code
- The homes will have 650 square feet of living space
- They will be true two-bedroom homes
- They will have front and rear covered patios at ground level (no more steps to a deck)
- Other improvements over the original model home:
- A bigger refrigerator
- A stack washer-dryer
- A bigger bathroom
- Additional windows
- Beam and rafter vaulting throughout, including the upstairs bedroom
What are the dimensions and features of the homes that will be available for purchase at River Run?
- The homes will be 12 feet wide and 40 feet long, with vaulted ceilings throughout
- They will have 650 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, accessed by a circular stairway
- Both bedrooms can accommodate queen size beds
- There will be 96 square foot covered patios at the front and back of the home
- The homes will be “green-built” and energy efficient, and will include features not typically found in homes of this size, including a stone fireplace, wood clad interior, in-floor radiant heat, mini-split air conditioning and solid-surface countertops
- The homes will come with a refrigerator/freezer, range with oven, microwave oven, dishwasher, stack washer/dryer, surface lighting, ceiling fans and window shades.
- Home buyers can choose from four exterior colors: dark brown, light brown, grey and white
What is the initial cost of a home at River Run?
The first 13 homes will be available for purchase for a promotional price of $130,000 — an incomparable value in light of the quality, style, location and community services available to purchasers.
Will the homes be affordable?
We are working with local banks that may be willing to offer attractively priced first mortgage financing to home buyers. The developer, RRC, is prepared to offer optional down payment assistance to qualified buyers in the form of a second mortgage.
It is our goal to allow buyers to move into one of the first 13 home at River Run for a down payment of not more than $10,000 and a monthly payment of $1,250 or less, including the ground lease and mortgage payments. Find more details on Financing Options here.
If you think you might want to take advantage of the promotional pricing on a home at River Run, it is not too soon to begin investigating your financing options.
To obtain contact information for local bankers willing to discuss financing options for the purchase of a new home at River Run, please call us at 970-445-3095.
NOTE: RRC is unaffiliated with any of the banks that may be interested in offering financing to River Run home buyers and cannot provide assurances regarding loan qualification or terms.
How much is the monthly ground lease and what does it cover?
The 60-year ground lease will be at an initial promotional rate of $650 per month. River Run will be a full-service residential community, and the lease will cover community management, as well as maintenance of grass, plants, trees and shrubs on common areas and on individual home parcels, to include irrigation, fertilization, mowing, pruning, leaf collection, snow removal, and the like. River Run will provide a dog park, and residents will have access the Colorado River through the adjacent KOA and its boat ramp.
What recurring expenses will home owners incur?
In addition to the initial $650 per month ground lease, River Run home owners will be responsible for annual home insurance charges (approximately $50 per month) and real estate taxes on the assessed value of the home (approximately $60 per month).
Additionally, homeowners will be responsible for monthly water, sewer and electricity charges that will be separately assessed and billed to homeowners. Given the small size, excellent insulation and efficient heating/cooling systems of the homes at River Run, home owners who practice reasonable conservation methods can estimate their average monthly water, sewer and electric costs at approximately $100/month, based on two-person occupancy.
Home owners will be required to contract with the Town of Silt for curbside trash pickup – currently $25 per month — and RRC will provide trash container screening enclosures at no cost. Conduit will be available at each home parcel for cable TV, internet and landline phone service from Comcast at the homeowner’s option and additional cost.
Phase-One Parcel and Home Development
Phase-one development will encompass the first 13 parcels and the first five homes, at the south end of the River Run property, closest to and with temporary access through the KOA. The first home will be used as a model home and the remaining four homes will be offered for sale. Landscaping for the first 13 parcels will be completed in the spring.
Who will build the homes at River Run?
The homes will be built by a reliable local contractor to the design and specifications developed by RRC and will carry a one-year warranty from the contractor.
Does RRC have plans to deal with the likely need of River Run residents for additional storage space?
RRC has plans to develop multi-story buildings on additional acreage along the north and west boundaries of River Run to provide space that can be rented by River Run residents and others at rates that will be competitive with similar self-storage space in the region for indoor parking and self-storage of personal goods. The buildings will also provide frontage road screening and highway noise attenuation for River Run residents.
Why do you prefer to rent the land under the homes rather than sell it?
There are two reasons why we chose to retain ownership of the land under the homes at River Run. The first has to do with maintaining the quality and character of the community. We have many millions of dollars invested in the adjacent KOA, and we will invest many millions more in River Run. We do not want to do anything at River Run that might diminish the value we have created at the KOA, or the value that we intend to create at River Run. If we subdivided and sold the parcels to home buyers now, before our vision for the community is fully realized, a homeowners’ association independent of RRC would provide upkeep and management of the community – possibly without the same incentive to maintain quality that RRC would have.
The second reason is related to our goal of creating affordable housing for the Silt market. It is less expensive to finance a $130,000 home without land and the related costs inherent in the subdivision process. Since the homes will now legally be considered as real estate, and not as recreational vehicles, and since the lease is very long term (60 years), the banks can offer attractive mortgage terms — now between 3.5% and 4% on a 5- or 7-year adjustable rate 30-year first mortgage.
May the landlord terminate the Ground Lease without cause?
The ground lease will be a sixty-year lease that will contain provisions adequately protecting any lessee who is in compliance with its terms. This is in sharp contrast to a mobile home community where the typical short-term lease creates significant risk for the homeowner. Once the River Run community is fully established in accordance with our vision, we may very well subdivide the property and offer lessees the right to buy their land parcel.
Should I be concerned that the homes at River Run will be built on a foundation and not on a moveable, wheeled chassis?
The answer is no, for two reasons. First, although the tiny homes that we originally planned to offer could theoretically have been moved, this would have required a semi-truck, road permits and a professional driver, given their weight and size. Considering all this, we would explain to potential buyers of the tiny homes that if they wanted to move from River Run, selling the tiny home was a better option than trying to move it. That option, of course, still applies to the new homes now under construction on a foundation. The owner can sell the unit subject to the ground lease, and we could help in the process, if requested.
Also, after carefully researching Colorado law and regulations, it became clear that we would not be able to guarantee to buyers that they could live in the tiny homes year-round.
What might be the impact of the new Golden Gate fueling station on the homes at River Run?
The Golden Gate Petroleum gas station/truck stop was recently completed on an independently owned, 5.2-acre parcel, adjacent to the acreage dedicated to the KOA and River Run.
We believe that the availability of nearby fueling plus a convenience store and potentially a liquor store (approval applied for) – as part of a new and well-maintained facility — will enhance the experience for both River Run residents and campground occupants.
The distance from the Golden Gate fueling area and/or building closest to the first home in River Run’s Phase 1 is approximately 620 feet.
The agreement between Golden Gate and the Town of Silt provides that there will be no overnight parking of trucks, no idling of trucks, no sleeping in trucks, no showers for truckers, no dump station and no propane tanks filled between 9pm and 7am.
Most importantly, the Silt Planning & Zoning Commission reviewed Golden Gate’s lighting proposal on a photometric map that showed no light pollution beyond the property lines, in accordance with the Town’s code. We have been assured that if in actuality the lighting is found to be in excess of the photometric map, the Town will require modifications by Golden Gate.
Golden Gate will soon add landscaping on their southern and western boundaries, consisting of deciduous and evergreen trees sized to meet minimum Town standards (2.5 calipers and six feet height, respectively).
What public transportation is available to and from River Run?
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.