ROCK SPRINGS — Rock Springs Mayor Max Mickelson said the city will revisit options for the First Security Bank building next month after a deal to sell the building fell through.

The building was originally purchased by the Rock Springs Urban Renewal Agency before being acquired by the city. Mickelson said the intent was to secure an anchor project that could help drive broader downtown growth, similar to redevelopment efforts in Boulder, Colorado and Fort Collins, Colorado.

Kody Watts, representing Armin Way, had proposed converting the building into 17 multifamily units on the second and third floors, with retail or restaurant space on the ground floor and storage units in the basement. Watts agreed to buy the property for a price of $415,000, in November 2025, but the deal fell through and renegotiations are underway.

The city included strict construction requirements in its proposed agreement to prevent a buyer from holding the property long term without completing the project. Mickelson said the city does not want to sell the building only to see it remain idle.

“The last thing we want to do is sell the building to someone who sits on it for a decade and hopes that it becomes worth more,” Mickelson said.

If negotiations do not move forward, Mickelson said the city could relist the property and seek other developers, though he acknowledged no viable buyer has emerged in recent years.

Another option under consideration would involve pursuing affordable housing through federal programs similar to those used in Cheyenne. Mickelson said he spoke with Cheyenne Mayor Patrick Collins to better understand how that city financed conversion of a historic property into affordable housing.

Rock Springs faces a shortage of affordable housing, Mickelson said, calling it a significant barrier to economic development.

It’s hard to attract young people if your starter homes are half a million dollars

Rock Springs Mayor Max Mickelson

Mickelson said he would prefer that the city not remain in the real estate business long term. Under revised terms from the Wyoming Business Council, the state would now recapture 25% of sale proceeds from the building rather than the previous 90%, potentially allowing the city to reinvest a larger share into smaller, more feasible redevelopment projects.

“I don’t think it’s appropriate for us as a city to sink a whole ton of taxpayer money into revitalizing private buildings because their owners neglected them,” he said. “We have to find a path that is good stewardship of taxpayer money and good stewardship of our history downtown.”

Mickelson also expressed support for the Wyoming Business Council’s shift toward funding infrastructure rather than directly subsidizing private companies. He said infrastructure limitations have previously cost the region potential manufacturing projects.

“There’s a tension between the people who want to see growth and the people who like it just the way it is,” Mickelson said. “You can retain your core characteristics and adapt to the environment that you’re in.”

Despite setbacks, Mickelson said he remains committed to seeing the First Security Bank building completed.

“If it takes the thousandth attempt to succeed, the first 999 were just learning,” he said. “What matters is that you are persistent and you accomplish the goal.”

Mickelson plans to bring the issue before the city’s building committee next week, with discussion by the Rock Springs City Council targeted for its first meeting in April and a potential decision at the second April meeting.