DENVER | Main Development Thread #7

[wong21fr]

Originally Posted by DenverInfill

After the city refused to allow them to have a curb cut on 17th Street (the right decision IMO by the city), I was afraid they'd walk away from the project but moving on to the SDP phase is a good sign and, hopefully, an indicator that the developer is moving forward with an alley-access design.

Why would they submit a SDP that continues to show a curb cut on 17th knowing it won't be approved?

Looks like the city did agree to a redesigned curb cut based upon some of the documentation included with the formal SDP package that was submitted.

It appears they moved the cut adjacent to the alley so that it functions like an alley extension and redesigned the vehicle movements. Can't imagine that they would submit this and a new transportation plan without getting the go ahead from the city.

[DenverInfill]

Originally Posted by Denver

Its possible the reached a deal with the city???

Maybe. We'll see I guess.

I support the city's refusal to provide a curb cut on 17th Street. There's only 115 feet between California Street and the curb cut for the alley. That's not a lot of room for yet another vehicle access point. Cars accessing the tower's parking levels can use the alley. That's what alleys are for (in part).

[PLANSIT]

That is the location of the “X” bus stop and future location outbound Colfax BRT station. Need all the space you can get.

[H. H. Holmes]

Originally Posted by Denver

It was torn apart by the LDDRB Staff. Given their comments it seems like this one is going to have a pretty significant redesign.

What was their critique? That is doesn't look enough like a LoDo warehouse?

I actually think the design is quite nice, especially the glass wrap around the right/top - only thing I'd change is the awkward balconies. It has way more personality than the new-ish Market Station building that is kitty-corner, which I assume was approved by LDDRB? Sometimes I think a design review board can be too restrictive, and we end up with a boring assembly of basic and matchy-matchy buildings (see the West Loop in Chicago - a similar urban neighborhood trying to "maintain character" though that same lens, to its detriment IMO).

Or maybe I'm off base, and they only took issue with the balconies.

[laniroj]

Originally Posted by DenverInfill

After the city refused to allow them to have a curb cut on 17th Street (the right decision IMO by the city), I was afraid they'd walk away from the project but moving on to the SDP phase is a good sign and, hopefully, an indicator that the developer is moving forward with an alley-access design.

Why would they submit a SDP that continues to show a curb cut on 17th knowing it won't be approved?

I had thought about that curb cut and for the life of me, can't figure out why they would want this? Is it a security concern (vagrants). Are they not able to fill ground floor retail space there - I would think a bank would pay to have that as a retail location - they'll overpay for anything downtown!

As a developer, this is the type stuff that really pisses me off about big nationals. Why even propose an entrance on 17th - it's bad design! It's bad for the built environment, detracts from the overall building appeal, and mucks up pedestrian flow and traffic flow (loading, etc). Just do the right thing damnit!

[TakeFive]

Denver Developers Have Capital But Contend With Economic Challenges
August 1, 2022 By Nancy Kristof, Bisnow Denver

High demand and economic uncertainty are converging on Denver-area development and construction companies trying to keep up with the needs of a swelling city while macroeconomic factors throw up hurdles.

Money is flowing into Denver because of the city’s rapid growth, but it takes more than financing to get a project done in today’s uncertain climate, according to panelists at Bisnow Denver Construction and Development event at Industry RiNo Station...

“There is just a ton of money and capital to support some of the projects that we’re doing, particularly in multifamily,” said Milender White Executive Vice President Albus Brooks, also a former Denver city council member.

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

From the Central Park update desk


Bisnow/Nancy Kristof

Northeast Denver Housing Center is building 127 income-qualified rental units adjacent to Sprouts market on Central Park Boulevard. The A Line townhomes are also under construction on the west and north sides of the lot, while the tower crane for High Street Residential's 301 market-rate units is visible in the background.

Denver Apartment Construction Has Never Been Busier As Renter Population Swells
August 22, 2022 By Nancy Kristof, Bisnow Denver

Stop in Sprouts Farmers Market at 35th Avenue and Central Park Boulevard in Denver at lunchtime and you’re likely to see some shoppers clad in yellow safety vests. They are just a few of the many people building the 771 multifamily units under construction within a five-block radius of the store, including the two projects circling the parking lot.

“There’s never been more apartments under construction in the metro Denver area, ever,” Apartment Association of Metro Denver Executive Director Mark Williams told Bisnow.

Central Park Station Residences


Courtesy of Trammell Crow and KTGY

High Street Residential is under construction on 301 units along the Central Park Boulevard corridor, with another 368 units planned to break ground in 2023.

... phase one of the Central Park Station Residences being developed by High Street Residential, the multifamily subsidiary of Trammell Crow Company. The project will bring 301 units to the corridor and offer a level of quality that’s a step up from current inventory, High Street Residential Principal and Senior Vice President Erik Hagevik said. Phase 1 includes secure parking in the podium and a third-floor amenity and pool deck.

Courtesy KTGY

[TakeFive]

Perhaps this a problem tailor made for The Jetsons?

Originally Posted by laniroj

I had thought about that curb cut and for the life of me, can't figure out why they would want this? Is it a security concern (vagrants). Are they not able to fill ground floor retail space there - I would think a bank would pay to have that as a retail location - they'll overpay for anything downtown!

Interesting if not earth shattering

ViewRay Will Relocate HQ To Denver In Latest Win For Region's Life Sciences Industry
August 8, 2022 By Nancy Kristof, Bisnow Denver

Medical device company ViewRay will relocate its headquarters from Cleveland to Denver, the latest win for a region that wants to grow its presence as a life sciences hub.

ViewRay manufactures and sells radiation therapy systems, and said in a news release that the move from the Cleveland area will “help attract top-tier talent from the state’s growing medical technology sector.”

ViewRay’s 50-plus local employees work in 14K SF in Granite Tower at 1099 18th St. in downtown Denver.

This is what I've been talking about...

As of February, bioscience companies made up the largest share of prospects in the economic development pipeline for metro Denver, and state and local officials have big goals for growing the life sciences industry.

The company plans to add a 10K SF training center to support development, manufacturing and physician training elsewhere in the Denver metropolitan area in 2023, ViewRay Director of Marketing Communications Samantha Pfeil told Bisnow in an email.

[TakeFive]

Not being more business-friendly is why many look at Colorado as a "Backwater State."

https://www.bisnow.com/national/news/dat...-ready-to-join-the-mile-high-club-114515

On paper, Denver and submarkets like Colorado Springs and Fort Collins seem like places data center developers should be flocking to, but the hyperscale builders that lease to big tech companies have stayed away. While the past two years have seen cities like Atlanta, Phoenix and even nearby Salt Lake City emerge as digital infrastructure hubs led by massive hyperscale campuses, Colorado has remained a relative backwater.

Is there any hope for Colorado?

Yet industry insiders, speaking at Bisnow’s DICE Denver event at the Gaylord Rockies Resort and Convention Center, say that shifting market dynamics have developers and investors giving the region a closer look.

Blackstone-backed QTS Realty Trust earlier this year hinted at plans for a major new data center campus in the Denver area. And this month, the power crisis in Northern Virginia's industry-leading data center market has led developers to begin exploring other markets, and insiders say several hyperscale builders have been calling around about Denver.

Who oh why is this the case?

So why aren’t hyperscalers coming to Colorado? Panelists at DICE Denver pointed first to a lack of state-level tax incentives. Most U.S. states now offer some kind of tax break to encourage data center development. Additionally, in a sector where speed to market is everything, developers are hesitant to launch hyperscale projects in locations where the municipality and local utility are inexperienced with build-outs on that scale.

“Incentives are important, and this should be an area of focus,” said Thomas Bailey, senior director for corporate economic development at Colorado utility Xcel Energy. “This is one decision by the state of Colorado that would make Denver a Tier 1 market probably within the next two years.”

Why does Colorado being a Blue State mean it doesn't need to compete?

[mojiferous]

Originally Posted by TakeFive

Not being more business-friendly is why many look at Colorado as a "Backwater State."

https://www.bisnow.com/national/news/dat...-ready-to-join-the-mile-high-club-114515

Is there any hope for Colorado?

Who oh why is this the case?

Why does Colorado being a Blue State mean it doesn't need to compete?

I can add some inside information here - this is nothing more than industry propaganda in an attempt to get some incentives. The reason Denver and the Front Range don't have more data centers has more to do with the fact that free industrial land near data backbones is expensive here, we don't have a lot of free water or power for cooling, and we're more than one "hop" away from most major population centers. Geography and cheap land coupled with a desperate local government willing to give out incentives is what they have traditionally looked for - Phoenix serves southern California, Sacramento & the East Bay for SF & the Valley, the river valleys in eastern Washington and Oregon serve Portland/Seattle... One big outlier is New York City, because Wall Street wants their server farms as close as possible and there are entire buildings in the financial district that are now just floors and floors of servers. Everywhere else the data companies search for the cheapest, most suitable land they can find.

And honestly, server farms are the 2020s Walmart - a relatively expensive tax outlay that a lot of municipalities fight for that turns out being worth a lot less than was promised - they 🞵🞵🞵🞵 up power and water, create local heat islands like other heavy industry, they actually pollute fairly heavily, and because of advances in remote administration they don't actually bring that many high-paying jobs. They call them "high tech" jobs because they involve fancy computers, but the server farm companies have realized they can automate a lot, have centralized higher-paid admins remote, and treat the onsite admins like low-paid/low-skill workers. It is like bringing a heavy manufacturing plant that only employs a tiny handful of people. The name "data warehousing" is actually pretty apt.

If our state and local governments wanted to provide incentives for high tech industry, they should build some really impressive incentives for chip manufacturing and tout the fact that we will likely still have water in 10 years unlike Phoenix and have a reliable electric system and aren't overrun with extremists like Texas. But I would argue against further incentives for data centers.

[TakeFive]

This is a seriously good post

Originally Posted by mojiferous

If our state and local governments wanted to provide incentives for high tech industry, they should build some really impressive incentives for chip manufacturing and tout the fact that we will likely still have water in 10 years unlike Phoenix and have a reliable electric system and aren't overrun with extremists like Texas. But I would argue against further incentives for data centers.

Nice description of the challenges with tech and data centers; it sent me a-Googling. Last point made, first:

I digress

Going back a couple of decades the benefit of off-shoring or letting SE Asia (notably China) do all the manufacturing brought numerous benefits. It lowered the cost of most all of the everyday goods we consume. It let somebody else handle the 'dirty work' of manufacturing which was a big plus from an environmental standpoint.

Fast Forward to a rapidly changing world and those benefits have become a huge concern from both a competitive POV as well as for National Security.

Here’s what’s in the bipartisan semiconductor chip manufacturing package
August 9, 2022 By Katie Lobosco, CNN

Washington (CNN) - Congress has passed a bill that will invest more than $200 billion over the next five years to help the US regain a leading position in semiconductor chip manufacturing.
Once a leader in semiconductor chip manufacturing, the US has lost ground as other countries like China ramped up production, forcing many American manufacturers to import chips – which are essential to the production of cars, smartphones and medical equipment.

The new funding is intended to help companies bring chip manufacturing back to the US and, as a result, help lower costs and prevent supply chain disruptions.

Unfortunately Colorado lost its chip chops a couple of decades ago.

AFIAK, most of these $billions will flow into Red States like Arizona, Texas, Ohio and Indiana with the exception of New York State and possibly Michigan. The R&D money will likely be spread around but the manufacturing money is already allocated essentially. The one gripe is the outsized benefits to Intel in Ohio partly because Intel has lost a lot of its competitive edge but Oh Well.

[TakeFive]

Originally Posted by mojiferous

And honestly, server farms are the 2020s Walmart - a relatively expensive tax outlay that a lot of municipalities fight for that turns out being worth a lot less than was promised - they 🞵🞵🞵🞵 up power and water, create local heat islands like other heavy industry

Source: Shutterstock, courtesy of Stream Data Centers

Water is Life
March 11, 2022 By Voices of the Industry

It quickly became clear there's a lot of biased POV's from Google feeds and I wanted something more factually based and up-to-date. This piece is very good.

For the past half century, the Phoenix metro area cities have been very proactive about safeguarding water supplies. The region was one of the earliest to implement widespread water reclamation and reuse projects (all golf courses and large-scale landscaping, for example, must be irrigated with reclaimed wastewater) and to limit groundwater draws.

I remember the question of water usage coming up with TSMC's (Taiwan Semiconductor) new $12 billion microprocessor Fab; they claim to recycle 86.7% % of their water (2019).

Three of the world’s largest data center operators have recently made water sustainability commitments. Google has pledged to be “water-positive” by 2030 – replenishing 120% of the water consumed across its offices and data centers.

Microsoft has also committed to being water positive by 2030. Facebook has also committed to being water positive by 2030.

BTW, this is another very good source regarding water usage in data centers for Utah.

Originally Posted by mojiferous

They call them "high tech" jobs because they involve fancy computers, but the server farm companies have realized they can automate a lot, have centralized higher-paid admins remote, and treat the onsite admins like low-paid/low-skill workers.

While this is true it doesn't mean such investments are either good or bad. The other side is that they impose minimal demands on infrastructure (like roads etc) other than power and water and those can be almost entirely mitigated with the latest tech and using renewable energy sources.

I would agree that with the completion of the Gross Reservoir expansion that the Denver metro area should be reasonably secure for water assuming additional conservation measures.

[Sam Hill]

Sorry in advance for cluttering up the joint with useless babble, but I figured this is the best place to leave this useless babble since this is the place that spawned it.

Remember that silly Trader Joe’s debate a few months back? Well, since then I’ve talked to quite a few (mostly Colorado-based) friends and relatives about TJ’s and the verdict is in: Trader Joe’s is weird and expensive.

Some of the comments (paraphrased) that I have received:

“Are you kidding me? The first time I shopped there I was totally lost! You practically need a guide from a seasoned TJ shopper to figure out how to even shop there! You just think it’s normal because you’ve been shopping there for 15 years!”

“You just think it’s cheap because you’re comparing everything to fancy Whole Foods type 🞵🞵🞵🞵! Yes, Columbus brand is cheap compared to Boar’s Head. But I don’t buy Boar’s Head because I can’t afford it! Where’s the cheaper options???!!!”

“Why is everything pre-packaged in a way that forces you to buy a certain amount! So frustrating!”

“Sometimes I just want a cheap, normal version of something and don’t need TJ’s fancy ‘gourmet’ spin on it!”

No one agreed with me that TJ’s is cheap. Anyway, y’all were right and I was wrong.

Carry on…

[TakeFive]

The Year-End Sprint

With Labor Day now behind us and Autumn leaves turning soon, snow can't be too far behind.


Courtesy Kanonsky/ThinkStock via K99

Now that Ken and Ryan nicely list future projects in the planning pipeline in their areas of focus and with plenty of capital still sloshing around the Big Question is how many groundbreakings will there be before New Years Eve?

I'll guess three!

[laniroj]

Originally Posted by TakeFive

...I would agree that with the completion of the Gross Reservoir expansion that the Denver metro area should be reasonably secure for water assuming additional conservation measures.

True so long as there is enough precipitation and runoff to fill Gross Res and partially sustain the rest of the west. I'm not aware of a single reservoir in Colorado that has filled to capacity (for more than a couple weeks due to a big storm) over the past 20 years. When they do fill, inevitably the Feds order us to release water for downstream (ab)users serving big ag mainly in California. Within the next 20 years, I definitely think Denver Water and Los Angeles DWP will become the two most powerful entities in the entire West - more powerful than the Cities they serve (which arguably is already the case).

We just need a water pipeline already. It would be so damn easy. One $15 billion pet project from the gubment and the west is green like Hawaii.

[laniroj]

Lots of cranes and activity in Sunnyside. Does anyone have info on anything up there? Near as I can tell they are all stealth mode except for that Zia one that completed a year or so ago. Any info/renderings/active pictures would be appreciated!!

[RyanD]

Originally Posted by laniroj

Lots of cranes and activity in Sunnyside. Does anyone have info on anything up there? Near as I can tell they are all stealth mode except for that Zia one that completed a year or so ago. Any info/renderings/active pictures would be appreciated!!

Should have something on DenverInfill by the end of the week-ish

In the meantime, enjoy some Arapahoe Square I posted today:

https://denverinfill.com/2022/09/arapahoe-square-roundup-sep-2022.html

[wong21fr]

Originally Posted by RyanD

Should have something on DenverInfill by the end of the week-ish

In the meantime, enjoy some Arapahoe Square I posted today:

https://denverinfill.com/2022/09/arapahoe-square-roundup-sep-2022.html

Thanks for the update Ryan. The three tower proposal is certainly eyebrow raising.

[TakeFive]

Coloradans want you to stop moving to Colorado
Sep 12, 2022 by: DJ Summers

DENVER (KDVR) — Coloradans have had enough of newcomers. And, according to a recent poll, even those newcomers are sick of newcomers.

Along with the booming economy, the state’s housing has bloomed to some of the nation’s most unaffordable, its unhoused homeless population tripled, trails and parks have become more crowded than ever before, traffic has become the nation’s 15th most congested, and metro violent crime rates have risen. Colorado has become the nation’s car theft capital, the nation’s cocaine use capital, and one of the states with the highest rise in overdose deaths.

Is there some kind of survey-poll to back this up?

A joint Rasmussen Reports/NumbersUSA Education and Research Foundation survey says Colorado residents believe the state grew too much too fast, and that leaders should discourage more.

Pollsters asked 1,024 likely Colorado voters a series of questions about Colorado’s open space development, population growth and future by telephone and internet. Only 43% of them say they were born in Colorado. Sixty-three percent say they would like state and local leaders to somehow restrict development to make it harder for people to move to Colorado. Most Coloradans, though, want to keep their own areas free of the kind of crowding that would lower housing prices.

Something has to be done NOW

Which proposals do you like best?

• Hiring Border Guards?
• Telling all dog pounds to let their dogs go, run free
• Putting something stinky in the water
• Importing hordes of NYC rats
• Name your own plan

[Sam Hill]

Sixty-three percent say they would like state and local leaders to somehow restrict development to make it harder for people to move to Colorado. Most Coloradans, though, want to keep their own areas free of the kind of crowding that would lower housing prices.

That’s the dumbest thing I’ve ever read.

[UrbanT]

A reporter from businessden tweeted renderings of two CMK proposals. The 37 story proposal near 21st and Lawrence as well as the triple 25 story proposal at 2200 stout. https://twitter.com/tgounley/status/1569370124951474176?s=46&t=8EAd2FAdVvKEvzCY6-mNhw