Denver city officials are working on plans to invest in private condo developments near transit stations, Mayor Michael Hancock told attendees of a Denver Metro Chamber of Commerce luncheon Tuesday.
The initiative, which hasn’t yet been announced in detail, aims to put together partnerships with private developers to build new condos near three rail stations. The transit-oriented developments would serve a mix of income levels.
“I am excited the Office of Economic Development has begun to forge partnerships that will bring a P-3 model (for private-public partnerships) to create new affordable condos at three TOD sites across the city,” Hancock told hundreds of business leaders at the Denver Performing Arts Complex. “These sites will allow our low-income residents to not only own a home, but to own a home that is (likely) to appreciate.”
By investing in projects, the city would offset some of the costs that have made developers hesitant to build condos in recent years. In particular, many developers have cited the increased risk of liability for faults they must take on under the state’s construction defects law, which state legislators have been reluctant to modify in recent sessions.
But city officials say they aren’t ready to release more information about the condo plan.
Derek Woodbury, the economic development office’s spokesman, told The Denver Post that it’s still in formation stages. Talks are underway with one likely partner, he said, while the city is reaching out to other potential development partners. He declined to name them or identify which three light rail and or commuter rail stations might be targeted, though he said they were on different lines.
In a statement provided to The Post, Hancock’s economic development director, Paul Washington, said: “We’re working to establish a replicable framework to include public-private partnerships to deliver mixed-income, for-sale housing at transit-oriented development sites. This will occur through strategic investments by the Office of Economic Development to support land acquisition, vertical development, and/or related infrastructure.”
Hancock’s Chamber speech mirrored his State of the City address last month, with a particular focus on the need for more affordable housing options for the legions of Denverites who are finding it harder to afford soaring rents and home prices.
He tailored the case for his audience, arguing that keeping Denver affordable — which has become a challenge as the city grows quickly — is key to continuing its years-long run of fast economic growth.
Hancock argued his administration’s 10-year, nearly $150 million affordable housing plan would make a dent in the problem, though some housing advocates have doubts. Meanwhile, though Hancock didn’t address the issue directly, some in the room Tuesday are among those who oppose the proposal’s inclusion of new development impact fees to help pay for it.
“We have heard from all sides,” he said. “But we also understand that if housing costs continue to burden our workforce the way they’ve been (doing so), at the risk of displacing more and more of our residents, then it will hurt our future economic growth and simply impact who Denver is as a community.”
The mayor and participants in a panel discussion that was moderated by Kelly Brough, the Chamber’s president and CEO, underlined that the affordable housing challenge is affecting a broad range of residents, from low-income to those with professional salaries who are in the middle class.
During his speech, Hancock also announced that he planned to ask the City Council this fall to renew the 4-year-old business personal property tax credit, which expires this year. Businesses that have invested in expansions or new operations in Denver can apply for a credit of part of their tax.