On a sunny September morning, development professionals gathered at the parking lot located at 799 Logan St. in Denver’s Capitol Hill neighborhood, directly across from the Governor’s Mansion.
Though Governor Jared Polis does not reside in this building, he is advocating for new residential developments in the area.
The newly established Public-Private Partnership Collaboration Unit, referred to as the P3 office, is actively seeking proposals from developers to construct income-restricted housing on the half-acre parking lot at the intersection of Eighth Avenue and Logan Street.
Director of the P3 office, Tom Kurek, emphasized the importance of housing accessibility in Colorado.
“Gov. Polis has made a decision that we need more housing. We need more housing now, and that’s why this office was created — the P3 office,” Kurek stated.
According to the state’s request for qualifications (RFQ), at least 20% of the units developed on the site must be reserved for individuals and families earning no more than 80% of the area median income.
Currently, this 80% income threshold is set at $78,480 for individuals and $112,080 for families of four.
Additionally, developers will be required to allocate 28 parking spaces for use by the Governor’s Mansion.
The state plans to lease the ground for 99 years, with the rental income funding future maintenance and renovations of the mansion, which Governor Polis opts not to inhabit.
Last Thursday, Kurek, along with a group of technical advisers and state employees, guided several interested developers around the parking lot to address inquiries ranging from zoning issues to site setbacks.
The site previously housed brick buildings that were demolished sometime in the 1960s or 1970s, prompting developer Adam Berger to express caution.
“So there might be some surprises down there,” he remarked.
Adam Berger, operating under Adam Berger Development, indicated he is eager to explore the site further.
His specialty lies in creating modular developments, where buildings are constructed from pre-fabricated boxes that come with installed appliances.
These boxes are placed using cranes and subsequently connected, with a facade built around them.
Berger recently completed a 77-unit development in Denver’s Sun Valley neighborhood.
Though the Cap Hill parking lot is zoned for buildings of up to 12 stories, he expressed that his strategy would lean towards a five-story design.
“Twenty stories would be challenging for a modular approach, not to mention more costly. Our current plan is to potentially design five-story buildings, possibly above a podium setup,” Berger explained.
Other participants at the site visit included an architect from Cushing Terrell, who was seeking an opportunity to collaborate with a developer needing architectural expertise.
The application process for proposals concludes on October 24.
Kurek indicated that the state hopes to finalize a developer selection by the end of the year, with construction anticipated to commence in 2027 or 2028.
Although the P3 office will not provide direct construction financing, Kurek stated that it can assist with design and permitting costs.
Kurek is the second individual to lead the P3 office, which was launched in 2022.
Despite not having yet seen a project through from inception to completion, the office is collaborating on various housing developments throughout the state, extending from Lakewood to Durango.
“Our goal is to utilize the lot adjacent to the Governor’s Mansion for housing, highlighting the critical need for affordable housing solutions not just in Colorado but nationwide,” Kurek concluded.
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