DENVER | Main Development Thread #7

[Arapahoe]

Originally Posted by RyanD

Evolve Towers are also slowly plucking their way through the permitting process. Also, their latest design review last fall was finalized and approved. It would be great to see those as well.



https://denverinfill.com/2021/04/arapahoe-square-roundup-apr-2021.html

I really, really, REALLY wanted this to become reality. However, I saw the land was on the market again in Oct 2020 and that Ubuntu Partners were attempting to sell the designs, land and transfer all the completed work as part of the deal. Bid deadline was listed as of June of this year. Then nothing happened and the listing was pulled. Not a good sign, but keep hope alive.

[Denver]

Originally Posted by RyanD

Evolve Towers are also slowly plucking their way through the permitting process. Also, their latest design review last fall was finalized and approved. It would be great to see those as well.



https://denverinfill.com/2021/04/arapahoe-square-roundup-apr-2021.html

Given the legal troubles of the developer's husband, I highly doubt this moves forward with the current development team. No clue how they could finance this. My guess is they get this permit ready and then try to flip it.

[RyanD]

^ Interesting... Well time will tell with this one too.


Also, a friendly X Denver reminder before we all get cross-eyed. X1/X2 is now just X1. X3 is X2 and the new 23-story proposal on 2000 Welton is X3 not X4.

[TakeFive]

Originally Posted by Ndj

Crazy that downtown Denver can only sustain one major condo development a decade.

What's nice about this project is it is what I'll call upscale condos as apposed to totally high end which is about all that's been built so far.

Originally Posted by mhays

Also, if they plan to start in Q4, maybe they have the financial strength to build without presales. That's a huge advantage...they can build at today's prices but sell at tomorrow's.

My best guess is they decided the project is worth building even if they were to decide to convert it to rentals down the road. They'll have the extra legal costs related to condos is all.
That said I think these should sell well enough. It would make more sense to wait til they're ready to come out of the ground before they price it.

Originally Posted by bunt_q

We have also had helpful legislative fixes and supportive court decisions that have changed the construct defect liability risk landscape for developers since the last cycle.

Curious minds...

Assuming they pass the bi-partisan infrastructure bill in September how much more work/analysis is needed for the I-70/Floyd Hill project? Is 270 closer to being shovel ready?

Originally Posted by RyanD

Evolve Towers are also slowly plucking their way through the permitting process. Also, their latest design review last fall was finalized and approved. It would be great to see those as well.

Impossible not to like but I won't yet hold by breath on this one.

[Arapahoe]

A second tower crane has been installed at the Colorado Convention Center. They are removing the cladding from the Champa St side of the parking structure and have started hoisting steel girders to the roof where the gigantic new ballroom will be constructed - to be the largest ballroom in the state of Colorado, with an adjoining outdoor terrace and atrium overlooking the mountain views to the west.

[TakeFive]

Side Pocket

The window for the Transportation thread is now open (if briefly).

[DenvertoLA]

Originally Posted by Arapahoe

Not for long:

Denver Business Journal ran this article this morning.
Downtown Denver's largest condo project since 2009 is set to break ground soon

"The project’s developer, Vancouver, Canada-based Amacon, plans to break ground in the fourth quarter of this year, according to Mark Sheldon, the firm’s Colorado manager."

By James Rodriguez – Reporter, Denver Business Journal
10 minutes ago



https://www.bizjournals.com/denver/news/...cx_testVariant=cx_1&cx_artPos=0#cxrecs_s

copy and paste that whole article please

[mhays]

Can't do that, due to copyrights.

As for condos vs. rentals, I believe leaving the option open means assuming condos. It's not just insurance and finance, but also stuff like:
-- a lot of added documentation and redundant QC in the construction process, to prepare for suits
-- more utility metering, potentially
-- typically the option to upgrade units if they plan to start pre-sales by midway through construction, which can be written into various subcontracts
-- more parking for condos vs. rentals (they currently plan 461 units and 522 spaces, which is generous)

[TakeFive]

Originally Posted by DenvertoLA

copy and paste that whole article please

There will be tons of information coming out once they announce a groundbreaking. Still getting their sales team together and said it was too early to price the units.

Originally Posted by mhays

Can't do that, due to copyrights.

As for condos vs. rentals, I believe leaving the option open means assuming condos. It's not just insurance and finance, but also stuff like:
-- a lot of added documentation and redundant QC in the construction process, to prepare for suits
-- more utility metering, potentially
-- typically the option to upgrade units if they plan to start pre-sales by midway through construction, which can be written into various subcontracts
-- more parking for condos vs. rentals (they currently plan 461 units and 522 spaces, which is generous)

Interesting stuff.

Confluence built a condo complex called Zia in a neighborhood called Sunnyside. I thought, assuming more moderate prices these should be a good seller but perhaps their timing wasn't that good in hindsight - or that the location needs more time to appreciate the changing area.

Their Website now states.

Featuring 314 for-rent apartments and 120 for-sale condos, Zia Sunnyside will be an urban dwellers paradise. Conveniently located steps from the 41st & Fox Commuter Rail Station, residents will be one stop away from Union Station and all of Downtown Denver.

You do what you gotta do. It's a nice enough project and costs have only gone up since their groundbreaking in Sept 2018 so their investment is still good, I'd assume.


Rendering courtesy of Craine Architecture

[Arapahoe]

XD2 club levels ~17ft tall. Pretty expansive shared space consuming two full floors and also wrapping the parking levels. Constructions workers give it some perspective.

[gopokes21]

Originally Posted by bunt_q

This more than anything is evidence to me that you have no idea what you are talking about. Government construction, more than anything, is still stalled due to COVID. Governments still haven’t recovered their capital programs from the initial cuts they made at the start of COVID. And while there is a whole lot of money on its way, in the form of state and federal infrastructure money, I have never seen state and local construction as slow as it is right now. Even in 2009.

Well it would help if Denver would spend down its Elevate Denver bond program, or even half... before asking the voters for another bond package.

Eventually voters will keep saying yes and the City, moving at the speed of bureaucracy, will just be several bond packages behind schedule.

I think in/around Denver, we're seeing fewer, but larger projects. These mega projects around every corner are much more complicated in terms of financing stack, pre-development and entitlement processes, etc etc. We just need the dam to break but it's not like there's less activity overall in Denver, esp compared to 2009.

[bunt_q]

I actually think it’s the opposite. I think after a period of very large projects (which are still underway), people are scared to death of any more large projects, we have megaproject paralysis around Denver. (As a person whose career is doing these, it’s not great for me.) The problem is that we’re actually not great at project delivery (as evidenced by Elevate), so doing more smaller projects just slows everything down.

Agree completely on the bond programs. Also, to put a new arena into the bond program with no plans for completing the facilities that we already voted, let alone the remainder of the stock show campus, is also disingenuous. That’s the worst part, they’ll actually end up coming back for a third or fourth time before it’s complete. (As Robin Kniech pointed out.)

[The Dirt]

It's going to be a No Vote November for me. All of the ballot measures this year are mega dog doodoo. It just tells me that our politicians are massive pansies who are too afraid to do anything (bad or good), and would rather refer to the voters. Most of whom will be in their 70s, because anyone not retired isn't going to have enough time navigating all of the nonsense going on in Denver politics.

[Robert.hampton]

I think this bond package will have a real hard time passing. No one is buying the National Western Complex vision (including investors, which is why this is coming to a bond in the first place) and the rest of the projects are pretty visionless and filled with a bunch of deferred maintenance.

I'd rather spend all this money on a safe outdoor site in every neighborhood and then throw the rest of the unsanctioned campers in jail.

[Arapahoe]

Originally Posted by Robert.hampton

I think this bond package will have a real hard time passing. No one is buying the National Western Complex vision (including investors, which is why this is coming to a bond in the first place) and the rest of the projects are pretty visionless and filled with a bunch of deferred maintenance.

I'd rather spend all this money on a safe outdoor site in every neighborhood and then throw the rest of the unsanctioned campers in jail.

AMEN!!

[Denver]

New project (to me): 2700 Wewatta Way

Milender White, Urban Ventures and Rivet Development Partners are teaming together with Shears Adkins Rockmore Architects to build affordable housing in Denargo Market, a neighborhood just north of downtown Denver. The five-story apartment building, located at 2700 Wewatta Way, will provide permanently affordable housing for transition-age youths ages 18-25 years old. The community will provide opportunity for this age group to move out of poverty and instability due to trauma and homelessness and into an adult life filled with support and possibility for social enterprise and growth.

Construction type is wood-frame over concrete podium utilizing prefabricated wood wall panels built off-site by Milender White. The project will provide 56 one and two-bedroom units as well as common residential amenity spaces, a social enterprise retail space and only six surface parking stalls taking advantage of Denver’s new urban parking requirements.

The Milender White preconstruction team is currently working closely with the design team and ownership to create an efficient design. Pending LIHTC approval in November 2021, construction is expected to begin in Q2 2022.

[TakeFive]

Originally Posted by gopokes21

Well it would help if Denver would spend down its Elevate Denver bond program, or even half... before asking the voters for another bond package.

Interesting to compare and contrast.

Nov of 2007 voters passed the Better Denver Bond Program

• Mayor John Hickenlooper formed an Infrastructure Task Force in 2004
• In 2006, Mayor Hickenlooper formed the 115-member Infrastructure Priorities Task Force
• In 2007, Denver’s citizens passed the ballot initiatives that established the Better Denver Bond Program ... The City provided funding for more than 380 projects

I can recall posting about several projects in the 2011 to 2013 time period.

The Elevate Denver Bond Program approved November 2017.
"Featuring more than 500 projects over 10 years, this $937 million program will fix our streets and create new ways to get around town

• May 1, 2018 the First List of projects resulted from issuing $193 ml in bonds.
• May 6, 2019 the Second List of projects from issuing $82 ml bonds; a smaller list focused on Cultural facilities.
• October 15, 2019. the Third List, another long list of projects from issuance of $117.25 ml bonds.
• November 2, 2020 the Fourth List of projects from issuing $170 ml in bonds.

So far $562 ml in bonds have been issued out of $937 that the voters authorized.

[bunt_q]

Originally Posted by Robert.hampton

I think this bond package will have a real hard time passing. No one is buying the National Western Complex vision (including investors, which is why this is coming to a bond in the first place)

Well this is definitely not true. The market didn't cancel the P3, the City did. (Now, it wasn't going to be free...but it was never going to pay for itself; there are only two arenas in the U.S. that ever have. And the rest of the campus was definitely going to need public help; nobody ever said livestock events were standalone money-makers. But investors were very much interested and it was going to be much cheaper for the City long term.)

To be fair, the City actually views deferred maintenance as being a key part of the every-10-year-bond-programs. They've never been big on vision. We just do not have a capital program in Denver at all, really, outside of the periodic bond issuances, so the bond programs are the only place where there is any scope for vision at all. But they have always served to pay for major maintenance that we do not fund annually. (To tie back to the last point - this makes P3 projects look more expensive, because the maintenance costs that the City normally defers get priced in; the private guys are not contractually allowed to defer maintenance. Makes it really hard to do an apples-to-apples cost comparison.)

[TakeFive]

Originally Posted by Robert.hampton

I think this bond package will have a real hard time passing. No one is buying the National Western Complex vision (including investors, which is why this is coming to a bond in the first place) and the rest of the projects are pretty visionless and filled with a bunch of deferred maintenance.

I'd rather spend all this money on a safe outdoor site in every neighborhood and then throw the rest of the unsanctioned campers in jail.

The only thing "investors" would have been involved in was a proposed P3 which was always a reach. There was a brief period when many thought P3's could be some type of panacea.

Most of the National Western Center projects were to be funded by the 'tourism' tax per voter approval. Investors bought the bonds is all. First problem was there was a boatload of new or changed infrastructure projects needed. 2nd, the tourism tax is currently a dumpster fire.

Originally Posted by bunt_q

I actually think it’s the opposite. I think after a period of very large projects (which are still underway), people are scared to death of any more large projects, we have megaproject paralysis around Denver. (As a person whose career is doing these, it’s not great for me.) The problem is that we’re actually not great at project delivery (as evidenced by Elevate), so doing more smaller projects just slows everything down.

Colorado and Denver have a process problem.

The one saving grace may be the bipartisan infrastructure bill. Read somewhere that Federal funds could cover up to 90% of the cost - not sure where or how this specifically works. Additionally, presumably voter approval won't be necessary if they don't need to raise taxes.

Originally Posted by bunt_q

Agree completely on the bond programs. Also, to put a new arena into the bond program with no plans for completing the facilities that we already voted, let alone the remainder of the stock show campus, is also disingenuous. That’s the worst part, they’ll actually end up coming back for a third or fourth time before it’s complete. (As Robin Kniech pointed out.)

How quickly we forget. The Pandemic did slow things down for a period of time.

The arena is the one, next critical piece; the rest of the vision can happen over time. Early priority (in addition to infrastructure) went towards CSU's "Spur" facilities which is a Great Idea IMO.

[TakeFive]

I think I missed this one; good find.

Originally Posted by Denver

New project (to me): 2700 Wewatta Way

Milender White, Urban Ventures and Rivet Development Partners are teaming together with Shears Adkins Rockmore Architects to build affordable housing in Denargo Market, a neighborhood just north of downtown Denver. The five-story apartment building, located at 2700 Wewatta Way, will provide permanently affordable housing for transition-age youths ages 18-25 years old.

The Milender White preconstruction team is currently working closely with the design team and ownership to create an efficient design. Pending LIHTC approval in November 2021, construction is expected to begin in Q2 2022.

Milender White

I'm also looking forward to CDOT's old headquarters at 4201 Arkansas Ave 'winning' LIHTC approval.

David Sachs/Denverite penned a good piece about the old CDOT site as well as the competition for LIHTC's.

What ever happened to the big development with affordable homes planned on the old CDOT campus in Virginia Village?
Mar. 05, 2021

The residential portion includes 150 homes for people making 60 percent of the area median income or less, or about $54,000 for a household of three. Kentro Group, the developer, has secured federal tax credits. But it has had trouble getting state tax credits, which companies can get for building affordable housing. The credits are competitive; developers, nonprofits and local government agencies apply to the Colorado Housing and Finance Authority to get them and they’re necessary to make the project worthwhile for Kentro’s profit goals, said Chris Viscardi, director of development for Kentro. But Kentro has applied twice and not been approved.