Denver has 90 days to buy Xcel’s old Zuni Street steam plant

Neighbors are waiting to see what happens next.
5 min. read
Xcel Energy’s defunct Zuni Generating Station on the edge of Sun Valley. May 26, 2023.
Kevin J. Beaty/Denverite

It's suddenly crunch time for a group of westside residents who've been pushing the city to save Xcel Energy's defunct Zuni Generating Station.

For years, they've tried to convince Xcel to scrap their plans to demolish the hulking structure. They've meanwhile appealed to the city, under both Mayors Hancock and Johnston, asking they leverage public resources to save the historic building and turn it into something that might benefit the people who live nearby. Those conversations went dormant, thanks to the pandemic and our recent mayoral transition, leaving the power plant's future in limbo.

But things are moving now. Xcel sent the city a letter on Friday notifying officials that it's now time to sell or demolish the structures. The city gets first dibs on purchasing the site, and Xcel is giving them 90 days to make a decision.

Those preservation-minded residents are waiting in suspense to see what happens next.

Xcel says now's the time to decide.

The utility already has approval from state regulators to demolish the power plant, and they've cleaned it up in preparation for that deconstruction.

But Grace Ramirez, an Xcel community liaison, said the company has heard neighbors' calls to save the space. Those ongoing conversations led to the utility giving Denver a right of first refusal, she added.

"We are, no matter what, committed to having a conversation about a community benefit," she said. "What does a community benefit for this property look like, for the community, for the neighborhood?"

But something needs to happen soon, Ramirez told us.

"It's an old building, and we've delayed really moving forward with our Public-Utility-Commission-approved plan," she said. "From a safety perspective, we think its imperative to move forward with this next step."

In their letter, Xcel requested that Denver either buy the property or waive their right of first refusal. If the city opts out, Xcel will put the old power plant up for general sale for 30 days; if nobody buys it then, they'll move toward demolition.

A rendering of what Xcel Energy's old Zuni Generating Station could look like if it was saved through adaptive reuse.
Courtesy: Sun Valley Community Coalition

Community members are urging the city to act, and they're worried this is all happening too fast.

"This happened kind of all of a sudden," Jeanne Granville, president of the Sun Valley Community Coalition, told us after Ramirez informed her about the letter. "This is an important time, obviously, because the city is a key player, potentially, in this."

"Potentially" is the key word there.

Last November, Granville's neighborhood group penned a letter with 33 other organizations, asking Mayor Johnston to help them save the generating station.

"We are concerned that this once-in-a-lifetime opportunity could quickly slip away," they wrote.

But Granville said she's not sure where the mayor is on this question. She heard he toured the site, but it's still unclear whether he'll be game to buy it.

(Denverite write a follow-up if and when we hear his position on this.)

Glenn Harper, founder of Sun Valley Kitchen, and Jeanne Granville, head of the Sun Valley Community Coalition, chat in Harper's space on Decatur Street. April 19, 2024.
Kevin J. Beaty/Denverite

John Deffenbaugh, the president and CEO of Historic Denver who helped coordinate the community letter to Johnston, said he's yet to have any discussion with the city about this, despite some prodding.

He gets that Johnston has been very busy, he told us, but Xcel's new 90-day notice has created new pressure to act. He has plans to prod the city, again, this week.

"We will be asking for a meeting," he said.

City Council member Jamie Torres, whose district includes Sun Valley and the generating station, said any moves towards demolition will probably trigger a historic landmark review, which could force Xcel to change their plans.

"Is there some middle ground? Possibly," Torres wrote to us. "This is a huge opportunity for dialogue."

Ramirez said Xcel recognizes they could get gummed up by the landmark review, but told us she's not sure a historic designation would actually happen.

"We feel pretty strongly it'd be pretty hard to reuse the building," she said, adding that any new plan would also need to clear an onerous approval from state regulators.

If the plant is saved, it'll need a lot more remediation to make it safe for public use. Who would pay for that extra work is another open question, and the city has said they're not up for it.

But Granville and Deffenbaugh are still hopeful Johnston will come around. They'll need his help to do anything here, Deffenbaugh said, and told us he thinks we owe it to the old generating station. It enabled Denver's existence, he said, and we should remember that.

"It's presence has been so key for Denver to grow," Deffenbaugh said. "It almost needs the city's help now, for the city to give back."

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