Denver boosters boosted with gusto on Wednesday morning at the McNichols Buildings.
The topic of celebration: How the Downtown Development Authority would spend $100 million in voter-approved money — announced just a day after city workers received a note from Mayor Mike Johnston explaining how citywide layoffs would take place the week of Aug. 18.
But this tax-increment financing, approved by downtown voters in November, had nothing to do with the ailing general fund and its $250 million hole.
While much of the city will see cuts, downtown continues to spend big on its future — and it has the voter-approved dollars to do that.
“Here’s your headline: The Denver Downtown Development Authority is open for business,” said Doug Tisdale, the authority’s board chair. “It's open for recreation, it's open for entertainment, it's open for culture, it's open for living.”
“These investments mark a turning point supporting downtown's transformation into a neighborhood again,” City Council President Amanda Sandoval said.
“Today launches downtown Denver's economic recovery into overdrive,” Johnston said.
When asked about the optics of celebrating big spending a day after announcing layoffs to fill a $250 million budget gap, Johnston said the city obviously knows it’s facing economically challenging times.
One reason Johnston cited for the financial woes: a drop in sales taxes, as people spend less and go out less.
Tisdale pledged to use the spending to bring thousands of people downtown, noting that the $500 million previously invested in Union Station led to $5 billion in economic development and expansion.
“We think there are two parts of how you manage right on a crisis like this,” he said. “One is like any family or business, you have to reduce your expenditures to meet how much of revenue you have. The second is you do have to invest in the growth that's going to drive more economic development to help restore that revenue.”
Here’s how the money is being spent.
The new spending — representing $100 million of the long-term plan to spend $570 million — is concentrated in new investments in Upper Downtown, Civic Center, Glenarm Plaza, Skyline Park and Larimer Square.
In the mix: $23 million will fund the purchase of two parking lots on both sides of Glenarm Place at the Denver Pavilions. The land will be used for private mixed-use redevelopment and affordable parking along 16th Street.
Another $30 million will be used to “activate Civic Center Park,” making it more accessible. Reimagining the McNichols Building with a new restaurant and outdoor dining space, an arts marketplace and possible arts studios will cost $7 million.
Another $5 million will pay for improvements and activations in Skyline Park.
The authority helped fund the office-to-residential conversion of the Symes Building and the University building for $31 million. The projects will create a total of 236 new homes, a mix of market-rate and income-restricted housing aimed at working Denverites.
Additionally, $2.7 million will pay for a Green Spaces Market, where local artists, nonprofits and small businesses can set up shop. And hundreds of thousands will fund the renovation of space for the Denver Immersive Repertory Theater, the expansion of the Sundae Artisan Ice Cream flagship store, and the expansion and relocation of Milk Tea People.
Many of the projects will launch within the upcoming year.
The new projects are funded by tax increment financing, established in 2008 for the rehab of Union Station. The tax was reauthorized by voters in November to be used across downtown for new development, office-to-residential conversions, economic opportunities, childcare facilities, parks, arts and culture and improved pedestrian infrastructure.
Earlier this year, the authority unleashed a new downtown safety plan, with horse police patrols and motorcycle cops.
Another 100 applications for projects have been submitted to the Downtown Development Authority.
