After a tense discussion and weeks of delays, Denver City Council approved up to $812 million in spending to complete the first two phases of the National Western Center project.
“We're pleased with the outcome, but this was over a two-year process that was community driven,” said Brad Buchanan, executive director for the National Western Center Authority. “Community showed up. They supported. Council did their homework, and they made the right choice.”
But the project received only mixed support, with council members and some neighborhood leaders calling for the city to make a bigger — and stronger — commitment to funding community projects alongside the new hotel, arena and more.
The project has already spent or committed nearly $800 million of tourism taxes. The council on Monday authorized another $812 million, bringing the total cost to roughly $1.6 billion. And future parts of the project are still in the works.
“There is no more cherished tradition in Denver than the Stock Show,” Mayor Mike Johnston said in a statement. “Today, we are further committing to carrying that feeling throughout the rest of the year with events, entertainment, and a renewed dedication to putting people to work and improving the lives of neighbors through sustained – and lasting – trust and partnership.”
With council’s approval on Monday, the city will provide $23.3 million annually over the next 35 years for the project. The redevelopment — including the new spending and the previous spending — is funded by local tourism taxes voters approved in 2015.
The project, and its expanding cost, is a legacy of Mayor Michael Hancock’s administration.
What does the next $812 million get Denverites?
The newly approved money will fund;
- A new equestrian center for horse-related events
- A 160-room hotel
- The adaptive reuse of a historic building
- A community center that is supposed to be community-run
- A parking garage
- A few dozen units of affordable housing for people making between 50 and 100 percent of the area median income
The next phase of construction will likely cost around $325 million, with the rest of the new investment paying for interest.
The project includes a private consortium of developers and builders known as Community Activation Partners. The group is led by the Toronto-based private equity company Fengate and the builder Hensel Phelps. Perkins+Will, Oak View Group, McWhinney Real Estate, Sage Hospitality and 4240 Architecture are also part of the team.
Even this new funding won’t complete the full plans for the National Western Center. The next frontier is the “triangle,” a space of roughly 50 acres. Plans there could include more community-oriented projects and income-restricted housing. Work there can’t begin until the current events center is demolished.
Passing the $812 million for construction was controversial.
Several weeks ago, the approval of the funding hit a roadblock when members of the Community Investment Fund — a group created by the National Western Center Authority to represent Globeville and Elyria-Swansea neighbors in the development — asked for $16 million for community-based projects.
In contrast, the project’s backers proposed that community investments would be funded by donations from visitors and a fee on hotel stays. NWCA estimated that would add up to about $9.1 million over 35 years.
Buchanan said the completion of this phase of the project will bring community benefits including:
- 30 to 40 units of workforce housing
- A new community center
- A connection from the 51st Avenue bridge to a commuter rail platform
- Five acres of plaza space
- “Round up” donations from visitors that will go to the Community Investment Fund
- A 1-percent hotel booking fee
- An annual fundraising event.
The NWCA is an organization created by the city of Denver with a 13-member board. Most of its board members are mayoral appointees, although Colorado State University, the Western Stock Show Association and two Globeville Elyria-Swansea neighborhoods also have representation.
On Monday, at-large Councilmember Sarah Parady called out the funding proposal for a vote, forcing a discussion.
Parady asked council members to vote no on the contract and instead introduce a new proposal. Her plan would allocate less money to the project, with a separate bill instead sending $16 million of tax dollars in the Community Investment Fund.
Tourism tax dollars funds could be given to the Community Investment Fund, as long as the work funded projects on the campus itself, Parady said.
But assistant city attorney Josh Roberts said giving $16 million to a community group would still require a competitive procurement process and would not be automatically given to the Community Investment Fund.
The Community Investment Fund has said it would work with the city’s procurement process to pick contractors, just like the National Western Center Authority has.
Councilmember Serena Gonzales-Gutierrez asked whether the community is held up as a stakeholder in the process.
“I want to keep the door open to these conversations about how we treat community as true stakeholders and investors in this project going forward,” she said.
She agreed with the idea of introducing a new measure with dedicated funding for community projects.
“If these kinds of uses are eligible for public money, it’s really important to direct public money in that way,” she said.
Despite neighborhood criticism, multiple Globeville and Elyria Swansea neighbors came out in support of the current funding proposal for $812 million. Some raised questions about whether the members of the Community Investment Fund were actually looking out for the best interests of the community and reaching out to neighbors.
Others, including CdeBaca, asked the council to vote down the measure and commit to paying directly into the Community Investment Fund.
Hinds raised concerns about the city’s $250 million budget hole, which is forcing furloughs and potential layoffs. He said employees in the city are concerned about allocating $800 million or more to the National Western Center.
Nicole Doheny, the city’s Chief Financial Officer, said the tourism tax dollars cannot be used to address the city’s budget crisis.
Darrell Watson, the councilmember representing the district where the National Western Center is, supported the $812 million in funding.
“The yes vote unlocks community benefits and funding for the [Community Investment Fund],” he said.
He also said he planned to work with the community to find more funding for their work from other revenue sources.
The funding was approved on a 9-4 vote, with council members Gonzales-Gutierrez, Parady, Shontel Lewis and Jamie Torres opposing it.
Shannon Hoffman, the project manager of the Community Investment Fund, said she hopes council follows this vote with another ordinance providing a direct allocation of $16 million to the fund.
