Church And State Unite With Private Enterprise To Misspend Tax Dollars While ‘Helping The Homeless’

by Regan Bervar | Dec 16, 2019 | General Featured

by Luke Schmaltz

The St. Francis Center (2323 Curtis St.) is embarking on a satellite project in the Cheesman Park neighborhood that stands to benefit a handful of people — none of whom live in the area.

The Warren Church complex sits mostly empty at 1640 E. 13th Ave. after it was closed in 2014 by its owners — the Mountain Sky Conference of the United Methodist Church. Regardless, for the last 10 years, the St. Francis Center (SFC) has operated an employment center for the homeless from one of the church’s auxiliary buildings. The SFC Employment Services Office also offers a free storage service for clients who need a safe place for their possessions while they are getting back on their feet.

The proposed project would remodel the existing structures into a supportive housing facility for those using the SFC employment service. Essentially, the complex would serve as a temporary residence for people working toward permanent housing. Rental rates would be based on the tenant’s individual income.

The controversy surrounding the project is assuredly not due to the nobility of SFC’s intentions. It can be universally agreed upon that helping the homeless is a good and necessary cause. Yet, conflict has arisen due to a set of blaring fiscal incongruencies as well as an array of social disparities and structural oversights. The inflated costs of the project presents a ledger of alarmingly lopsided numbers. Further, the tenant eligibility parameters raise legitimate safety concerns for neighbors while the remodel would violate numerous Department of Housing (DOH) regulations and zoning laws.

The facility is slated to be named the Warren Apartments but has been dubbed “The Gilded Dormitories” by critics of the project. Those in opposition — most of whom live, work and/or own property in the area — have formed a citizen group called Neighbors of North Cheesman Park. A founding member (requesting anonymity) who works in government finance has compiled a set of compelling comparisons which illustrate a profound misappropriation of taxpayer funds.

Do The Math

Recently, a copy of the St. Francis Center proposal was obtained by a Neighbors of North Cheesman Park member through the Colorado Open Records Act (CORA). The plans show a 6,090 square foot residential design consisting of 42 one-tenant units, each 145 square feet in dimension (10’ x 14’). The estimated construction price tag rings in at a whopping eight million dollars — $8,101,191.00 to be exact, which boils down to a cost of $192,886.00 to build each of the 42 (10’ x 14’) units. To give perspective on this, comparable structures in the area such as the Colorado School of Mines dormitories were built for $46M to house 400 people at a cost of $122,500 per unit and the University of Colorado Denver dormitories were built at a cost of $68M to house 550 people at a cost of $123,636.00. These data demonstrate that the Warren Apartments will be built with an excess cost 55.7% compared to local averages. Also, the 145 square-foot units will not include kitchens or restrooms. Additional comparisons lend further befuddlement to the exorbitant construction price tag, as it places the building costs at $7.34 per square foot — a rate 269.2% higher than the Denver per-square-foot average ($1.99) and 420.3% higher than the Colorado average ($1.41). These grossly uneven comparisons beg the question: why anyone would want to spend so much money for such a limited facility when the same money could be used to help many times the amount of projected beneficiaries.

Follow The Money

Gap funding for the Warren Apartments project will come from the Low Income Housing Tax Credit (LIHTC) program, from the Denver Office of Economic Development and the Colorado Division of Housing. A report issued by the St. Francis Center in January 2018 named the above entities as partners, investing $9.5 million, $500 thousand and $500 thousand, respectively. When the final closing on the property commences (it has been postponed several times), the Mountain Sky Conference of the United Methodist Church will receive $1.2 million, while BlueLine Development out of Billings, Montana, will be awarded the $8M remodeling contract and SFC will take over ownership and operations of the premises. Operating costs will flow to SFC from taxpayer revenue coffers in the form of vouchers, warranted by the fact that the facility will offer on-site services for residents.

Communication Issues

The Warren Apartments have been authorized for construction for some time, yet those living and working in the district were not informed through federally regulated means. The proposed build involves exterior remodeling of an existing structure. According to Denver Development Services, such an undertaking requires that “Building permits must be posted onsite and be visible from the street.” No such posting exists, and instead, stakeholders such as neighborhood property owner Chris Mast, are hearing about the project through the grapevine. In his case, he was informed via casual conversation with the Executive Director of Warren Village — an adjacent non-profit facility for low-income single-parent families.

Safety Last

When Mast approached an employee of the SFC employment office and asked about the Warren Apartments project, he was met with hostility. He was told, more or less, that if he doesn’t like it he should move. When he obtained a copy of the Saint Francis Center proposal, Mast discovered that the facility would adhere to the Housing First guidelines set forth by the National Alliance to End Homelessness. He found it concerning that a facility within several blocks of a daycare center and a transitional housing facility for single-parent families (both at Warren Village) is willing to house individuals convicted of felony assault, as long as they have not offended within the last year. The guidelines also state that there is no policy regulating on-site alcohol and drug use. Plainly put, violent criminals using toxic substances may be living next to families including recently displaced women and their children.

Zoning Violations

Thus far, the Warren Apartments issue has gone largely unopposed because it has been withheld from public knowledge. For those in city government who are in the know, the project has garnered support — especially among Denver City Council members who want to cultivate an image of homeless advocacy. Yet, in addition to the aforementioned issues, the remodel will violate zoning laws by establishing a “supportive housing” facility adjacent to an existing structure designed for the same purpose (Warren Village) and by operating a large residential property that is devoid of designated parking. To a lesser degree, the proposed remodel will also violate statutes regulating exterior alteration of historical structures.

There are many potential outcomes should the project see completion. In a best case scenario, numerous people in need are given a temporary place to live so that they can get back on their feet. In a worst-case scenario, this section of Capitol Hill becomes further stressed by a potential criminal element that endangers neighborhood children. Regardless, a massive amount of taxpayer funds and charitable money will be spent on an out-of-state contractor and awarded to religious organizations based in other districts of Denver. Bottom line, like all other misspendings of tax dollars, this project makes little sense.

The Neighbors of Cheesman Park have created a website with all of their financial findings which includes a comparative analysis.  To access this information, visit www.stfrancis-cheesmanproject.com.