The Colorado Economic Development Commission recently granted a one-year extension on a loan requested by the Colorado Transportation Investment Office (CTIO) for the acquisition of the Burnham Yard in Denver, while denying a two-year request.
The CTIO, which operates as a division under the Colorado Department of Transportation, had previously purchased the Burnham Yard, a former railyard, for $50 million from the Union Pacific Railroad in May 2021.
In light of constrained state funds during the pandemic, the CTIO sought to borrow $7.5 million from the state’s Strategic Fund, typically reserved for incentives related to corporate relocations and job creation initiatives.
At that time, the Strategic Fund had allocated $9.5 million to attract significant corporate investments.
This 59-acre parcel, characterized by its historic brick buildings, is located in the La Alma-Lincoln Park area of Denver.
When initially presented to the commission in 2021, the purchase was described as a once-in-a-generation chance to acquire valuable land in central Denver.
The Department of Transportation aimed to reserve 15 acres for infrastructure improvements, specifically to straighten and widen a problematic stretch of Interstate 25, which frequently experiences traffic congestion.
The CTIO also projected that the acquisition would yield better routing options for the Regional Transportation District’s rail lines and would facilitate planning for the Front Range Passenger Rail project, connecting Fort Collins to Pueblo.
Ultimately, the remaining acreage was intended for resale to cover the initial investment.
However, following extensive studies, CDOT announced that it no longer required any of the initially designated 15 acres, opting instead to pursue selling the entire lot to private developers.
The anticipated timeline for this sale is set for May 2026, which creates a pressing situation as the loan from the state’s economic development office is due on June 21.
According to Piper Darlington, head of the CTIO, the reassessment indicated that rerouting the transportation lines was more intricate than initially thought, prompting the decision not to retain the land as originally planned.
When the CTIO proposed a two-year loan repayment extension to the commission, the request was met with silence, culminating in commission chairwoman Carrie Schiff stating, ‘No motion, no action.’
After further discussion, the commission opted for a one-year extension, heeding board member Chris Franz’s call for caution around safeguarding taxpayer dollars.
The implications of keeping the loan funds tied up are significant; those resources might otherwise support vital state economic development efforts amid rising concerns about a potential recession.
Furthermore, the land has not undergone an updated appraisal since its original acquisition, raising questions among the commissioners regarding the value of the collateral linked to the $7.5 million loan and its impact on repayment terms.
There are inherent risks for taxpayers in the event CTIO sells the land at a price lower than its purchase value, whereas a potentially profitable sale could lead to the Strategic Fund missing out on financial benefits.
Commissioners emphasized that delaying action on this matter is detrimental to economic development, especially considering CDOT’s changed stance on retaining the land.
Burnham Yard presents a rare opportunity for development within central Denver, as it is one of the few available sites large enough to potentially accommodate a new stadium for the Denver Broncos, fulfilling various logistical and access requirements necessary for such an endeavor.
Moreover, its proximity to The River Mile, a transformative redevelopment project backed by Stan Kroenke, owner of the Denver Nuggets and Colorado Avalanche, and developer Rhys Duggan, enhances its attractiveness.
This proposed initiative aims to revamp the area around Elitch Gardens and the parking facilities of Ball Arena into a diverse urban neighborhood, complete with park spaces along the South Platte River.
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image source from：https://www.denverpost.com/2025/04/18/economic-development-loan-burnham-yard/
