Denver city leaders have cleared the way for the next step of a proposal that would generate new incremental tax revenue in an area at 27th and Larimer. The proposal is a partnership between the City and County of Denver and The Denver Urban Renewal Authority (DURA). The new money, which will come from a combination of increased sales and property taxes, will help fund a redevelopment of the area spearheaded by Edens, a national real estate company headquartered in Washington D.C. In May, Edens made headlines by purchasing 120,000 square feet of retail space in Denver’s River North district.

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One council member is going against the grain on the proposal. District 9 Councilwoman Candi CdeBaca opposed the plan. However, all other members of council supported the pair of bills and both were ordered published.

The Denver Gazette was unable to reach CdeBaca for comment.

Tax Increment Financing (TIF) is a tool used to fund neighborhood restoration projects — typically blighted areas. Under Colorado law an area is considered blighted if it has “at least four of the following factors, substantially impairs or arrests the sound growth of the municipality, retards the provision of housing accommodations, or constitutes an economic or social liability, and is a menace to the public health, safety, morals, or welfare….” 

As DURA explains it, under this financing mechanism the existing level of property and/or sales tax collections in a project area is set as a base, and an estimate is determined for the new future level of tax revenues expected to be generated. The difference between the base and the expected level of increased taxes collected as a result of the redevelopment project constitute the “tax increment.”

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While the commercial endeavors in the area have attracted national chains like Patagonia and local breweries and restaurants, the rest of the area is not so fortunate according to Jeffery Bader, the senior redevelopment specialist at DURA. 

“In April 2021, a conditions study was conducted for the property in the proposed urban redevelopment area,” he said. “As the condition study found four factors of life to be prevalent, typically the minimum that state statute requires for there to be a blight finding, that gave the Urban Renewal Authority the confidence to move forward.”

There were 11 findings from the April study, but Bader focused on four of the findings: Deteriorating structures, the deterioration of the site and other improvements, environmental contamination of the site or substantial under-utilization of it.

Edens wants to redevelop the area to include affordable housing and commercial options, an outdoor plaza open to the public and underground parking to serve the area. This raised questions about historic structures in the area and whether plans have been made to preserve them.

“The Volunteers of America’s headquarter building stays,” Tom Kiler, an Eden representative, said. “That structures about 22 years old, so not quite the same age as historic but that were preserved because it’s been part of the community for over 20 years.”

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For the most part the area’s buildings are not old enough to gain the classification of “historic,” according to Kiler. This despite the block being in one of Denver’s oldest neighborhoods.

Edens will take over the space the Volunteers of America occupied while the they complete a move to a Commerce City location. The Volunteers of America’s headquarters will remain in Denver, however.

Those who wish to sign up for the public hearing may do so starting at 3 p.m. on the day of the hearing. The sign up period ends at 5:30 p.m. Members of the public may sign up online, or give written testimony by emailing dencc@denvergov.org.