News

Durango Mall, Developers Agree to Terminate Contract

13 January 2026

Durango, CO: The City of Durango was notified on Jan. 9 that the purchase and sale agreement between Kensington Development Group and the Durango Mall has been terminated.

The notification was sent to the city's Community Development Department by the mall’s legal counsel, Newbold Chapman & Geyer PC, who wrote that the mall has withdrawn its authorization necessary for Kensington to pursue a development and use application with the city. The notification does not state why the contract was terminated, which was effective Jan. 8.

The conceptual plan for the redevelopment was first announced at the December 2025 Community Development Commission meeting, and called for a partial demolition of the mall, the construction of an organic grocery store, and between 230 and 270 apartment units.

The project was within the suggested boundaries of the proposed South Durango Urban Renewal Authority Plan Area, which is being reassessed now that the mall sale has been terminated. The proposed plan area also includes land across the Animas River along State Highway 3 and Sawmill Road. This new plan area is being reviewed by the Durango Renewal Partnership, Durango’s Urban Renewal Authority.

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