A deal that could incentivize redevelopment for the historic Rossonian building may help a long-running effort to reopen the hotel.
On Tuesday, a Denver City Council committee gave the first stamp of approval to a plan to create tax-increment financing for the Rossonian development.
Tax-increment financing, or TIF, is a common tool used by the Denver Urban Renewal Authority (DURA) to sweeten the redevelopment of blighted properties across the city.
Through TIF districts, companies that are redeveloping properties can get reimbursed by DURA for certain aspects of their project. Those funds are taken from future tax revenue generated in the district. The logic is that these new developments, which otherwise would’ve languished without the cash incentive, will in turn generate new tax revenue that those developers are entitled to a portion of.
Palisade, a major developer in the area, acquired the building at Washington and Welton streets in 2017. The goal was to rebuild it as a hotel and jazz lounge.
In the early 20th century, the Rossonian anchored Denver’s jazz scene and Black community, welcoming legends like Louis Armstrong, Duke Ellington, Ella Fitzgerald and more.
But development has been slow. TIF would be an opportunity to speed up development, according to Bill Pruter, DURA’s interim director.
“We've … concluded the project does require assistance in order for it to be delivered as has been contemplated,” he told Denver City Council’s finance and business committee.
The Rossonian’s owners envision turning the block into a hub with restaurants, event space and hotel rooms.
The Rossonian is just one part of a development that would breathe new life into the entire block.
While the iconic triangular-shaped Rossonian building will be internally gutted, its external facade remains the same. Its developer aims to build 18 hotel rooms and space for ground-floor food and beverage.
Buildings adjacent to the Rossonian will be, or already have been, demolished to make room for another 72 hotel rooms and an event space. Part of the Hooper building, which was built in 2022 and already houses residential units, will also be turned into 36 hotel rooms with ground-floor retail.
If fully approved by Denver City Council, DURA’s TIF waterfall would reimburse the developer up to $15.5 million dollars by diverting property and sales tax. The developer would provide the rest of the $101 million budget.
If approved, it would join a number of other projects along Welton Street that have received TIF funding. Those include an $42.3 million affordable housing development and a $40 million mixed-use development.
The developer is aiming for a 2028 opening.
