by Charles C. Bonniwell
The CitySet hotel/dining development in Glendale at the southeast corner of Colorado Boulevard and Cherry Creek Drive South has been an extraordinary success. An open plaza anchored by two major hotels (Residence Inn Cherry Creek and the Hilton Garden Inn Cherry Creek) and features eight different dining options ranging from Jax Fish House and Silvi’s Kitchen to Platform T and Big Smoke Burger.
The development has but one major drawback — lack of sufficient parking. According to documents obtained though the Colorado Open Records Act, Stonebridge Companies headed by Navin Dimond, convinced the City of Glendale and its head 
of planning, Deputy City Manager Chuck Line, into reducing the parking requirements by 20 percent from 663 spaces to 553. The project was heavily promoted by then mayor Larry Harte according to Line. But the city and CitySet were fortunate that Line refused to lower the number of spaces down even more to 482 as originally demanded by Dimond and his experts in his filings with the city.
Why Damage Your Own Project?
Why would a developer want to hurt his own project with insufficient parking? First of all because the type of needed underground parking costs approximately
$40,000 per space. In CitySet’s case the reduction saved the developer Dimond over $4,000,000. Secondly, and most importantly, savvy developers like Dimond know after bamboozling a city they can later come back and force the public to pay for all the parking they need and that is exactly what happened in Glendale.
Once the project was started, Dimond, through his affiliated companies, howled that CitySet did not, in fact, have adequate parking for all of its customers. How much additional parking was needed? It was almost exactly the 112 spaces Dimond convinced Glendale not to require in the first place.
Once a city like Glendale has approved a project with an under supply of parking it has little choice but to later provide a solution at the expense of the taxpayer. CitySet is a major producer of municipal revenue for Glendale, not only providing sales and property taxes but also the considerable hotel room tax. Moreover, if a major development like CitySet should fail due to lack of sufficient parking it would cast a pall on development throughout the city and threaten the viability of future developments, like the proposed Glendale 180 development across Cherry Creek on East Virginia Avenue.
Glendale also does not wish to hurt valuable tenants who had no idea Dimond purposely demanded that the city parking requirements be reduced for his own financial benefit. Cameron Tune, owner of Big Smoke Burger at CitySet, makes it clear that for his business “making sure parking is convenient is a top priority,” and he strongly urged Glendale to find additional parking for customers. He notes customers to CitySet can also take advantage of the existing free valet parking, between the two hotels, offered Tuesdays through Saturdays.
New City Ordinance
So rather than limit the viability of the CitySet project, the City of Glendale passed an ordinance taking the adjoining streets of South Exposition Avenue and South Ash Street and converting them from broad boulevards without on-street parking into much narrower driving lanes and parallel parking on both sides of the street.
The ordinance did not establish just ordinary street parking but the spaces that are restricted to only customers of CitySet. This was accomplished by util
izing a purported competitive bidding process with the successful bidder being a charged a small monthly maintenance fee of $20 to $30. While anyone could have theoretically bid on the special parking, the only realistic likely bidder was, of course, Navin Dimond through his affiliated companies. Line did refuse to give CitySet a long term commitment as wanted by Dimond and limited the reserved on street parking to a yearly term.
The special parking ordinance does not solve all of CitySet’s parking problems as it provides about half of the 112 parking space shortfall, but everyone expects Dimond to return in the not too distant future and expect the city’s taxpayers to pay for rest of his parking needs.
Mistake Conceded
Deputy City Manager Chuck Line concedes, “Yes, I made a major error. I never should have recommended to the Planning Commission and the City Council a major reduction in parking for CitySet. Every time you let a developer and their experts convince you that they do not need the required parking I have regretted it, and I do regret it in the case of CitySet. But now we do need to make it work for everyone’s sake.”
One would have thought Glendale had learned the hard way, that not providing adequate parking always creates 
major problems in the future.
North Glendale adjoining Leetsdale Drive and anchored by Mir Park is going through a residential renaissance. The apartment buildings built there in the 1960s are becoming highly sought after when renovated to modern standards. But when the buildings were constructed the city had little or no required on-site parking believing that on-street parking would be sufficient. But with development in the area the applicable on-street parking is now woefully inadequate. The city is now desperately trying to find a solution to allow the area to prosper.
Similarly Glendale did not require sufficient parking at the Skyline retail development on Colorado Boulevard featuring Chili’s, AFC Urgent Care, Noodles Fresh,World Market, Mile High Comics, and other successful stores and eating establishments. Parking wars consistently break out with those controlling the parking, hiring towing companies to take away cars of individuals shopping at stores without adequate parking for their customers.
Developers Need And Want Municipal Concessions
The key to the success of any developer is obtaining monetary and other concessions from the applicable jurisdiction. For example, Dimond for his CitySet project got Glendale to pay almost $16 million of his development costs through tax rebates, covering everything from his cost of acquiring land to paying for landscaping and even public art. The modification to the Glendale Zoning Code regarding parking made him an additional $4,000,000 that comes out of the pocket of every man, woman, and child in Glendale.
This is why real estate experts shake their heads when watching Mohammad Ali Kheirkhahi and Authentic Persian and Oriental Rugs demand Glendale never even consider acquiring their land and forcing Glendale to exclude their property from the Glendale 180 project and the applicable special districts. But forcing the city to do so, through threats and lawsuits, they made monetary concessions legally impossible to grant for their property, thereby greatly devaluing any project on their land. As one expert noted (who did not want to be quoted by name for fear of possible retaliation from Kheirkhahi): “It is a truism in real estate development that ‘pigs get fat while hogs get slaughtered.’ By being the most brutal, vicious hogs possible they have monetarily slaughtered themselves. Not exactly terribly bright.”