Denver City Council approved the $4.5 million purchase of a former state office building in Capitol Hill on Monday evening, paving the way for the first affordable housing development to tap the Vibrant Denver bond package.
The deal has been in the works since April. The Vibrant Denver bond package, overwhelmingly passed by voters in November, included $45 million of debt-funded investment in affordable housing and to reduce displacement of Denver residents. City officials hope to make five to seven investments in property purchases and site improvements using the fund.
The proposal initially garnered criticism from some council members, who said the city’s process to identify the land for purchase wasn’t transparent. But on Monday’s vote, the proposal got overwhelming support, passing 12-1.
District 7 Councilmember Flor Alvidrez was the lone dissenting vote. She said she wasn’t comfortable with a lack of commitment for family housing in the eventual development.
The building is at 251 E. 12th Ave., near the intersection of 12th Avenue and Grant Street.
Here’s what the affordable housing development might look like:
After the sale is closed in early June, the city will then issue a request for proposals for developers to turn the site into affordable housing. Depending on the winning proposal, the former Colorado Department of Labor and Employment building could be converted to residential use, expanded or demolished.
City officials say the location is attractive — it's near several public transit options, including the future Colfax bus rapid transit line, and it’s in a part of town that hasn’t seen new affordable housing units since before 2020.
The land was selected by a committee that includes mayoral staff, department heads and other city officials. Sites selected for the bond have to meet certain criteria, like proximity to major city infrastructure.
