Project Summary
The former commercial property, known locally as the old Walsh Hotel, on Sixth Street in downtown Alamosa sat vacant, blighted, and ultimately condemned after years of deterioration and environmental concerns. The site had long been viewed as a barrier to revitalization in the city’s core, limiting economic activity and posing increasing health and safety risks. Recognizing the location’s importance to downtown redevelopment, the City of Alamosa sought support to assess the property, ensure environmental safety, and position it for productive reuse.
Environmental assessments supported through EPA Brownfields funding enabled a rapid evaluation of the site’s conditions. With contamination concerns clarified and the property cleared for redevelopment, the City moved quickly to partner with a private hotel developer. A $1.3 million EPA grant provided timely environmental cleanup, allowing the project to advance without costly delays and significantly reducing redevelopment risk.
Construction is now underway for a four-story, 90-room hotel expected to generate $20 million per year in new economic activity. The project brings lodging capacity the community has long needed, increases walkability and downtown visitation, and supports broader tourism and economic development strategies. Extensive community engagement emphasized local priorities, particularly improved amenities and accessible commercial services.
The redevelopment stands as a flagship brownfield success story—transforming a once-hazardous site into a vibrant economic anchor. Through strong coordination among the City of Alamosa, EPA, state partners, and the private developer, the project demonstrates how strategic brownfield investment can eliminate public health risks, unlock redevelopment potential, and catalyze long-term economic growth in rural communities.
Environmental Challenges
Environmental risks stemmed primarily from long-term building deterioration and hazardous materials left in the condemned structure. EPA’s cleanup grant made it possible to remove or mitigate these issues quickly, ensuring the site posed no ongoing threats to public health.
Health, Safety & Protection: Cleanup eliminated unsafe conditions tied to the dilapidated structure. Environmental clearance reduced liability and allowed permitting to proceed.
Downtown Accessibility & Confidence: Hazard removal opened a previously unusable parcel for reinvestment. Cleanup reassured residents that redevelopment would proceed safely.
Financing and Deal Structure
The Alamosa hotel project was made possible through a blend of federal support, local leadership, and private investment. The EPA’s $1.3 million cleanup grant addressed key barriers to redevelopment by funding timely environmental remediation without imposing significant financial burden on the City.
Following environmental clearance, the City partnered with a private developer to construct the $20 million hotel. Building permits have been issued, and the project is slated for full completion by mid-2027. The collaboration streamlined due diligence, reduced redevelopment risk, and allowed the project to move forward on an accelerated timeline.
The deal structure demonstrates how rural communities can leverage targeted federal investments to unlock large-scale private development that would otherwise be cost-prohibitive. By eliminating the environmental barrier early, the City enabled economic growth while maintaining strong community alignment and transparent communication.
Quick Facts
Location: Downtown Alamosa, CO
Project type: Hotel Redvelopment
Site: Former blighted and condemned commercial parcel
Former Use: Several former uses; Vacant and unsafe structure with environmental concerns
Renovated Use: Four-story, 90- room hotel with community-serving amenities
Environmental Issues: Hazardous building materials, general site contamination risks
Reuse Partners:
- City of Alamosa
- US EPA
- CDPHE
- Private Developmetn Community
- Community Stakholders
- Colorado Brownfields Partnerhsip
- 9th Path Advisors
Social Impact
- Health & Safety: Cleanup removed hazards associated with the condemned structure
- Community Revitalization: The hotel activates a key downtown property, increasing foot traffic and improving urban vibrancy.
- Local Amenities: New lodging, retail, and visitor services support residents and travelers.
- Civic Pride: Replacing a long-blighted parcel strengthens Alamosa’s identity and downtown experience.
Economic Impact
- Major Private Investment: Hotel development drives $20M/year in local economic activity.
- Catalyst for Growth: The project anchors downtown revitalization and encourages additional investment.
- Business Support: More lodging capacity benefits local restaurants, shops, and events.
- Increased Revenue: Visitor spending supports city tax revenues and long-term fiscal sustainability.
Help for your project
Regardless of where you are in the process, the Colorado Brownfields Partnership (CBP) will help you learn about brownfields assistance for your community. We provide many types of support to communities interested in redevelopment of potentially contaminated sites. Contact info@cobrownfieldspartnership.org for more information.