Every underutilized commercial site was tabbed for a “world-class” multi-use development where those with disposable income – as well as those hoping to earn some – could live, work and play.
Clean up the filth left behind by decades of manufacturing operations? Do you take MasterCard or Visa? Tear down dozens of concrete and steel hospital and office buildings and re-sculpt the earth for new uses? Let me write a check.
Unfortunately, as we know too well, as the 2000s hit mid-decade, that once-predictable stream of dollars turned to dust, the massive construction cranes that had dotted our skyline became a thing of the past and dreams of a shiny new Denver were put on hold.
This year marks an even century since Charles Gates, Sr., purchased the Colorado Tire & Leather Company for $3,500, setting the stage for the time when Gates Rubber Company (the name was changed in 1919) would become one of Denver’s most important early commercial ventures. In its heyday, Gates employed hundreds and later thousands of workers on its South Broadway campus, working virtually around the clock making a variety of products for the automotive industry.
Ninety years later, in 2001, with its manufacturing operations gone to other states and countries, and its headquarters having moved to downtown Denver, Gates offered to sell off its Broadway holdings, ending its historic south Denver run.
Blinded by the light of potential profit, with no economic downturn yet in sight, noted brownfield reclamation experts Cherokee Investments jumped on 50 acres bounded by Broadway, Santa Fe Dr., I-25 and Arizona Ave.
Cherokee had grand plans to raze the well-aged buildings that remained, cleanse the earth of the solvents, adhesives and petroleum product left behind by decades of manufacturing, and in their place construct a multi-billion-dollar, multi-use, transit-oriented city-within-a-city that would change the face of Broadway forever.
Trammell Crow real estate joined the project early, purchasing several acres between Mississippi and Arizona avenues, on which they built Alexan Broadway Station, a surprisingly successful rental apartment complex mixing some 500 market-price and affordable units.
But Cherokee suffered along with much of the country when the economy slumped, and was unable to acquire financing to finish the agreed-upon environmental remediation. In 2006 Gates took back control of a 16-acre plot between Broadway and the railroad tracks to the west, with plans to take the cleanup to completion. Cherokee retained control of 24 acres between the tracks and Santa Fe Dr., but that site has since been taken over by Wells Fargo Bank.
Dan Scheppers, remediation programs manager for Colorado Department of Health & Environment, told the Profile that while the state monitored VCUP (voluntary cleanup) program has been virtually completed on the Wells Fargo-owned portion of the site, substantial cleanup work remains east of the tracks. “Some of the technical folks that worked for Cherokee have been trying to help Gates get a handle on what’s been done and what needs to be done to help keep redevelopment hopes alive.
“We’ve had additional discussion with Gates around the groundwater plume that goes under I-25 and north along Lincoln St. They did continue to do some sampling along there and it appears to be responding well to the treatment being done. They’ll undertake additional work there by this summer.”
City Council president Chris Nevitt’s District 7 encompasses the property. “The (redevelopment) plan we had before was fantastic and I’d love to see it happen,” he said, “but it’s probably unrealistic in the short and even medium term. We need to revisit what our vision is and how we get that done. We need a real committed developer before we talk about changing the vision we bought into.
“Meanwhile, from the city’s point of view, when things are booming, you build, and when they’re not, you plan. We’ve addressed a host of infrastructure issues around the I-25-Broadway interchange, and potential changes to Broadway itself. We’re trying to nail down loose ends to have an integrated comprehensive plan together, so when the private side is ready to take action, the city will be a catalyst, not an impediment.”
Across the street, from Broadway to Logan St., I-25 to Arizona Ave., the Dallas-based Lionstone Group purchased the remaining 30 acres that once belonged to the Gates family. The environmental issues addressed by Lionstone were nowhere near as burdensome as those faced by Cherokee, and Lionstone has been able to move forward, though a bit haltingly in recent years.
After redeveloping and successfully leasing three historic brick office buildings on the north end of the property, Lionstone sold the trio – including more than 315,000 square feet of office space – and an adjacent 675-space parking garage to Walton Street Capital LLC of Chicago at the end of last year for $49.5 million. Lionstone continues to seek out development partners to fulfill the residential/commercial plans for the remainder of their plot.
Lionstone spokesman Doug McKinnon said, “Interestingly, as of late we have been responding to an increasing number of requests from potential developers of apartments and other multi-family residential projects. The market dynamics in Denver are very positive right now for projects like the Alexan apartments across the corner.
“And with the purchase of our office buildings and the increasing strength of the commercial market, we’re hearing from parties wanting to buy part of the property for that type of use.”
McStain Enterprises, which originally contracted to build 43 duplex homes along Lincoln, Sherman and Grant streets south of Mississippi Ave., “is about 98 percent built out,” according to McKinnon. McStain has been in and out of Chapter 11 bankruptcy in recent years.
While we’re on the topic of major projects on hold, let’s head up to 9th Ave. and Colorado Blvd., the former location of the University of Colorado Health Sciences Center.
In the past couple of years, Shea Properties reportedly spent $6 million on rezoning and planning for another multi-use residential/commercial redevelopment that would have transformed that 30-acre plot to accommodate 1,200 residential units, 150,000 square feet of retail and 500,000 square feet of office space.
Late last month Shea was dropped as project developer. Apparently the company was unable to come up with the financing needed to purchase a piece of the property by this past summer, per their contract, and an extension did not lead to any better success.
Future plans for the site will be discussed at the next Colorado Blvd. Healthcare District meeting in early March (for information, contact Councilwoman Marcia Johnson, 303-355-4615).
DU’s neighbors are keeping their eyes on the latest iteration of developer George Thorn’s (Mile High Development) plan to build a residential tower on a tiny, pie-slice piece of land adjacent to the University light-rail station.
Since first presented several years back, Thorn’s plan has shifted from student housing to “workplace housing” and now to affordable senior housing.
In partnership with Koelbel & Co., Thorn hopes to mimic a similar project the pair plans to open in July at the Yale Ave. rail station. The six-story Yale Ave. project has 50 affordable senior units and 3,000 square feet of ground-floor retail. The University Station effort, which is dependent on being awarded low-income housing credits by the Colorado Housing and Finance Authority, would also be six stories, and would contain 60 apartments with no retail element. Parking requirements would be met with a mix of on-site parking with spaces leased for tenants from the light rail station parking garage to the south.
Thorn applied unsuccessfully for the needed tax credits last year, but is hopeful the switch to senior housing will result in a positive outcome.
