DENVER | Main Development Thread #6

[TakeFive]

Denverite... Very fair points.

I did say in my 1st comment that better oversight would be the best tonic. What I would also say is that the "power and authority" needs to be retained by the municipal (or appropriate) government. If a consumer advocacy group wants to be able to conduct inspections I see no problem so long as they report to or bring to the attention of the appropriate city agency any concerns. Or the city could subcontract out such inspections.

I also believe that the arbitration process should work much better to everybody's satisfaction than dealing with class action lawsuits. If for some reason(s) arbitration is ineffective then that should be addressed and rectified.

I don't recall the issues with One Lincoln Park and I never was aware of the problems with Panterra but what I would say is that it's not fair to over regulate and over burden the great majority of well-intentioned, professional, competent developers. Better supervision could be part of the solution. Perhaps Colorado can address the outlier by coming up with a housing lemon law for the truly bad messes that are made on occasion.

Whether the Condo defect law is being abused is the wrong question. The answer to that depends on who you ask. As bunt_q has discussed the fact that insurance costs to developers is extraordinary high tells you we're not dealing with ordinary, usual business risks. I've argued that in the past the demand likely wasn't there for condos. But that is clearly no longer the case but builders have no appetite for dealing with the risks from the defects law.

I do believe that the proposed bill is a very fair answer and I'm comforted by Mayor Hancock's support. Seriously.
Ultimately, each municipal jurisdiction needs to take care of their own. IIRC Panterra is (also) in Denver so I guess Denver needs to address their lack of oversight and enforcement and take corrective measures.

The politics of things we'll leave for another day. While I haven't been corrupted from living in a very conservative state it does raise one's antenna to excessive and unnecessary regulations.

[TakeFive]

Pretty Picture


Credits to bloomberg.com - Photographer: Matthew Staver/Bloomberg

Pretty clear sign?
Good article in BloombergBusness about building new spec office buildings.

(Bloomberg) -- Portman Holdings LLC, which has built high-profile properties such as San Francisco’s One Embarcadero Center, plans to break ground in June on its first U.S. office development without tenant commitments in more than 25 years.

Portman’s project is in Charlotte, North Carolina...

Relative to Denver

The company also has a spec office project in the works in Denver’s Union Station neighborhood and plans to break ground in three months on another one five blocks away.

“Denver is one of those areas that are on the front lines of office spec development,” said Jay Despard, managing director for Colorado of Hines. “In places like Denver, as opposed to San Francisco or New York, employers can maintain an employee base at a lower cost.

Certainly Hines is as familiar with the energy market as anyone. I'll guess that they feel the worst or lowest prices for crude oil will be a relatively short-lived situation. Energy may not be quite the positive that it has been for Denver but it's not likely to contract much. It may even provide entry for bigger companies who largely lost out in most of the recent fracking wave.

If energy is (largely) net neutral presumably there's enough positive things happening in Denver to warrant Hines going forward with their project on 15th Street. It won't be completed until some time in 2017 so they may be in a very good leasing position by then.

[mhays]

That sort of statement is often designed to influence competitors, while also signalling to potential tenants. It's not really a clear sign. On the positive side, (a) they wouldn't say it if they didn't want to build and (b) that goes double because they don't want to cry wolf and lose future credibility. More on the uncertainty side, between the fast rise in construction prices, the need to finish design, and the variability of interest rates, they only vaguely know the cost, so "wanting" to build now doesn't necessarily translate to wanting to build in a couple months.

[TakeFive]

mhays... You trying to rain on my parade?

BTW, danged if I can recall where at the moment but I read recently that construction costs are up a little over 5% in Seattle whereas Denver is up 3.5% or so. That makes sense in that Seattle is really revving up their office space construction where Denver is more riding the crest in general.

With respect to Hines, they announced the 1144 15th Street project last year. This was just a general discussion of office construction around the county in Bloomberg. My point was that nothing has (apparently) changed to deter their groundbreaking in May. That will also coincide with their finishing up a 300,000 sq. ft. project at 1601 Wewatta.

I wouldn't think any modest uptick in construction costs would deter them. Depending on actual starts this year there is a lot of projects that will be completed in 2014 so it's possible that labor availability may loosen up a bit.

[jimluka]

More layers of supervision, regulation, observation, and bureaucracy are not the answer either.

From a Seattle architects perspective; When permitting and inspection on a single family home are in the neighborhood of 45k affordability might as well be out the window.

http://blog.buildllc.com/2015/02/an-open-letter-to-building-depts/

http://blog.buildllc.com/2014/05/something-is-very-wrong/

In general, people intend to do their jobs competently, this applies to builders, GC's, architects and yes even developers. Find a practical balance that promotes an ecosystem where everyone is incentivized to do good and is able to make a living without being squeezed by growing regulatory and insurance fees. Allow a process to repair mistakes and we will all be better off in the long run. If defects are truly egregious there will always be a way to sue for reparations but it does not have to be inbuilt into the system from the start.

[mhays]

Originally Posted by TakeFive

mhays... You trying to rain on my parade?

BTW, danged if I can recall where at the moment but I read recently that construction costs are up a little over 5% in Seattle whereas Denver is up 3.5% or so. That makes sense in that Seattle is really revving up their office space construction where Denver is more riding the crest in general.

With respect to Hines, they announced the 1144 15th Street project last year. This was just a general discussion of office construction around the county in Bloomberg. My point was that nothing has (apparently) changed to deter their groundbreaking in May. That will also coincide with their finishing up a 300,000 sq. ft. project at 1601 Wewatta.

I wouldn't think any modest uptick in construction costs would deter them. Depending on actual starts this year there is a lot of projects that will be completed in 2014 so it's possible that labor availability may loosen up a bit.

My point is that decisions aren't made this early. They're gearing things up, and will decide when the price is more clear, market conditions are more clear, financing is more clear, etc.

[seventwenty]

Watching the SNL 40 show. 9News showed a preview for a very-pro NIMBY story for their Monday broadcast.

[TakeFive]

The final numbers are starting to roll in.

The good news is that after shrinking a tad last year DIA is once again growing and set a new record for passenger traffic. Final passenger count for 2014 was 53,472,514 for an increase of 1.7 percent. Denver did manage to hold onto the slot for 5th busiest U.S. airport but JFK is closing the gap with an estimated 53.2 million passenger count. Many airports set new records for passenger count.

Other notable changes:

• 1) LAX is now the 2nd busiest airport with a passenger count of 70.7 million in 2014
  2) DFW also saw a surge of over 5% to 63.5 million passengers
  3) SFO grew a healthy 4.8% to 47.2 million passengers
  4) Charlotte managed to stay ahead of Phoenix growing to 44.3 million passengers to Sky Harbor's 42.1 million

I once wondered how much DIA might be hurt by less emphasis on "hubbing" as opposed to more one-way point-to-point flights. So far, so good. It does appear with now fewer legacy airlines there has been much reconfiguring of flights around the country. I believe that United has retrenched a tad at DIA while Southwest is adding flights. Frontier is cutting many flights out of DIA.

I also took note of an interesting point made at the Charlotte Business Journal. While their passenger traffic grew the number of enplanements was actually down slightly as airlines add next-gen planes from Boeing and Airbus.

At a minimum DIA is doing fine, holding their own. Many airports are facing $billions in needed expansion and upgrades. DIA remains one of the most efficient airports for planes to fly in and out of. Another year and DIA will (also) have transit access and a nifty new anchor hotel. Carry on DIA.

[TakeFive]

per bloomberg.com


Why is it that the smartest Congressman on the Hill is an Independent? WaPo has the story by Ashley Halsey III HERE.

“Senator Sanders’ initiative to invest $1 trillion over five years through his Rebuild America Act will have a far-reaching impact on restoring and modernizing our nation’s aging infrastructure,” said Casey Dinges, senior managing director at the ASCE.

Sanders ... said targeted investments would be made in roads, bridges, transit, rail lines, water systems, ports and inland waterways, national parks, municipal broadband systems and the electric grid.

That might sound like a lavish amount of investment but spread over 5 years and 50 states it really isn't.

The American Society of Civil Engineers (ASCE) has calculated that an additional $1.6 trillion should be spent on infrastructure by 2020. A 2010 report by the University of Virginia’s Miller Center estimated that an additional $134 billion to $262 billion must be spent per year through 2035 to rebuild and improve roads, rail systems and air transportation.

I'm sure Colorado could easily identify places for investing their share. Between dam expansions already planned, other water & sewer needs around the state, airports, National Parks, grid improvements etc. Road, bridge and transit needs could easily gobble up more than half the funds between state, county and city jurisdictions.

"Mama needs a new pair of shoes."

P.S. - If I were Hillary's adviser I'd make this the centerpiece of a campaign.

[DenvertoLA]

Anyone have an update on 999 17th Street? I'm itching for that thing.

[TakeFive]

DenvertoLA... That's been one of my favs as well. Just a hunch but I think if the construction-defects bill gets passed they'll want to proceed with condos instead of apartments which was their original intent before the recession hit. It seems like a great location for that and just looks like a condo project to me. Plus with so many apartments being built it would just make good market sense.

----------------------------------------

I see where White Lodging has officially opened their new flagship 1,012 room JW Marriott convention hotel in Austin. I think that denconyny (or somebody) should start a petition that White Lodging build at least 27 stories at 15th and California Streets for their Le Meridien and AC hotels.

[BG918]

I see where White Lodging has officially opened their new flagship 1,012 room JW Marriott convention hotel in Austin. I think that denconyny (or somebody) should start a petition that White Lodging build at least 27 stories at 15th and California Streets for their Le Meridien and AC hotels.

The enigma known as Block 162 includes a 30 story 1000+ room hotel, likely a Hilton, at 15th & Welton. That was the proposal about 2 years ago. I don't know if that's still the plan but it could be playing into the relatively small size of the new convention area hotels like the Aloft and AC/Le Meridien.

[enjo13]

Originally Posted by BG918

The enigma known as Block 162 includes a 30 story 1000+ room hotel, likely a Hilton, at 15th & Welton. That was the proposal about 2 years ago. I don't know if that's still the plan but it could be playing into the relatively small size of the new convention area hotels like the Aloft and AC/Le Meridien.

Everything surrounding that block is becoming really frustrating. How in the hell has nothing happened there? Every time I walk by I get a little more angsty.

[COtoOC]

Originally Posted by urbanAcheiver

Hopefully Wheat Ridge around 38th. West Colfax? No chance. Have you ever driven down that shanty town region? Nothing but used car dealership lots and pawn shops. There isn't even the infrastructure to get started if you're a starving artist.

It would be nice if some developers started building there. They could turn those sleazy motels into hostels. This would all be possible if it weren't for the public housing on 14th and Knox. Perhaps the adult book store up the road too.

I wish there were a solution to the "sleazy motels" on E. Colfax as well. I drive though there a lot (going from Stapleton to Lowry) and see all the prostitutes, crack heads, drug deals going down, fighting, peeing on the sidewalk... that area will never clean up until the motels are gone. But then where do those lady workers/druggies/homeless families go?

[denconyny]

Originally Posted by TakeFive

I see where White Lodging has officially opened their new flagship 1,012 room JW Marriott convention hotel in Austin. I think that denconyny (or somebody) should start a petition that White Lodging build at least 27 stories at 15th and California Streets for their Le Meridien and AC hotels.

LOL

I have to say that this is a sweet project for Austin. Good for them.

But back to here..... why not 47 floors, might as well make it good?

More importantly though.... I doubt a petition such as this would really change anything. From my personal experience, whether it's pro or con, developers in the end do what they want to do.

And lastly, and most important, this development will be covering up another ugly surface parking lot (yay!). I'd settle for single story buildings on any or all of these ugly and numerous sites throughout DT and vicinity where a surface parking lot would bite the dust.

I know that we'd all like Denver to have a new signature tall building, who wouldn't want a new supertall being some 1000+ feet in the DT vicinity? But since Le Meridien/AC is so close to starting, and all of the rigamorrow with the city buildings department have probably worked their way through to being done for this project to get it climbing, personally I'm very happy (and hopeful) that this will be actually getting started very soon.

Maybe another petition for something else? I'd really like to see the Bell Tower project (remember that?) get going. Aren't there at least a few pot-loving billionaires out there who wouldn't just love a place like this in DT Denver? Or how about this one somewhere in Arapahoe Square? I even like this one - this could maybe use a few more floors? These would be worth some effort.....

My

[wong21fr]

So, some of the details were released on how the NWSS Complex Redo will be paid for:

How Denver officials will pay for revitalized National Western Stock Show complex

Denver's plan to transform the National Western Stock Show complex into a year-around events and education site called the National Western Center — spurring redevelopment in three surrounding neighborhoods — is expected to cost $856.4 million and take more than a decade to complete, city officials say.

-The bulk of the money, about $673.3 million, would come from the city.
-About $200 million of it would come from the city, via sales of city-owned land or other assets, naming rights for the buildings at the National Western Center, as well as lease and concession money from the center, state or federal grants, or capital budgets for public works and wastewater projects.
-The rest, about $476 million, would come from extending the city's existing 1.75 percent "lodgers tax" tax on hotel rooms and car rentals for at least 20 years beyond 2023, when the taxes currently expected to expire. The tax was approved by Denver voters in 1999 to pay for the expansion of the Colorado Convention Center, a project that will be paid off in 2023, Kennedy said.
-$117 million in RTA funding, via the creation of a massive new tourism zone that encompasses the stock show complex, downtown Denver, hotels near Denver International Airport and the Cherry Creek shopping district.
-$16.2 million from Colorado State University, about 2 percent of the overall project cost.
-$50 million from the National Western Stock Show itself, via donors and fundraising, about 6 percent of the overall project cost.

One interesting aspect is that $100M of this funding would go towards improving the Convention Center. This is likely for the improvements, such as a rooftop ballroom, that were identified in a study of the center last year. The other key component of the study was an additional 1,000-room or so full-service hotel. It's possible that some of that $100M would go towards an incentive for such a facility.

[Fritzdude]

Originally Posted by COtoOC

I wish there were a solution to the "sleazy motels" on E. Colfax as well. I drive though there a lot (going from Stapleton to Lowry) and see all the prostitutes, crack heads, drug deals going down, fighting, peeing on the sidewalk... that area will never clean up until the motels are gone. But then where do those lady workers/druggies/homeless families go?

I think you mistook East Colfax with West Colfax.

Both have issues, but at least East Colfax has cleaned up quite a bit from downtown out through Quebec. However, going further East on Colfax all the way to Anschutz Medical Campus is sketchy.

[BG918]

Originally Posted by wong21fr

The other key component of the study was an additional 1,000-room or so full-service hotel. It's possible that some of that $100M would go towards an incentive for such a facility.

The Block 162 developers are probably waiting on that subsidy to make their overall plan work with such a large hotel. That location would make the most sense tying the mall together with the convention center along California with AC/Le Meridien and the existing Hyatt.

I'm hoping 15th through downtown eventually gets reworked similar to what they did to 14th a few years ago. New landscaping, lighting and making the bike lane seem more permanent. Especially with all the new or planned developments including three of the tallest buildings that will be U/C downtown (Confluence, 1144 15th and AC/Le Meridien) and eventually Block 162 and the Pavilions parking lots.

[The Dirt]

Based on what I've heard, the developer isn't in a rush to develop block 162 and instead would rather wait to have all his ducks in a row for a taller development. It would include a major retailer (Target is out), hotel, office, an observation tower, and 16th street access. I'm okay with waiting until 2018 for a new tallest. This seems like the place to build it.

[enjo13]

Originally Posted by The Dirt

Based on what I've heard, the developer isn't in a rush to develop block 162 and instead would rather wait to have all his ducks in a row for a taller development. It would include a major retailer (Target is out), hotel, office, an observation tower, and 16th street access. I'm okay with waiting until 2018 for a new tallest. This seems like the place to build it.

Perfect is the enemy of good and all of that. Give me a less ambitious building and start to fill in that section of 15th please. They've been sitting on it for seven years now, it's time to build something.

Note: I get that these things are hard and economic factors exist. Doesn't mean I have to like it