by Mark Smiley | Sep 25, 2015 | Main Articles
Slowing Metro Economy May Pull Rug From Under City’s Building Binge, Real Estate Firm Warns
by Glen Richardson
Home sweet apartment home! To millennials and older lifestyle renters apartments are not only a place to hang their hat but the linchpin for Denver’s apartment building binge. As apartment projects currently under construction come onto the market, however, weakening in demand could be on the horizon by year-end warns Denver-based James Real Estate Services (JRES).
In an average year there are approximately 4,000 to 5,000 new apartment units built in Denver, but in 2014 alone almost 10,000 units were built with another 20,000 units anticipated for 2015. An additional 20,000 units are in the planning stage for 2016. Thus over three years, over a decade’s worth of apartment houses may be built. Of course Denver is experiencing an influx of millennials because of its booming economy, but any slowdown may leave a glut in the apartment market.
In its latest quarterly analysis of the metro market known as the Apartment Perspective, Eric Karnes — JRES Director of Market Research — writes, “we see a strong possibility for deteriorating market conditions during 2015 and 2016.”
Skewed Numbers?
It is generally considered that if the apartment vacancy rate is below 5% it is an indication of an extremely healthy market for developers. But JRES raises doubts about the claims that the vacancy rate in Denver is actually under 5%. In reality Apartment Perspective says, “We believe that the metro Denver vacancy rate is more accurately in the 6-7% range rather than the estimated 4.9%.”
Stinging Analysis
In Denver the influx of younger residents or “millennials” benefits apartment demand, as does the rising demand for apartments by 
older “lifestyle renters” who no longer desire the responsibilities of property ownership. To some extent the number of college and university students also affects the market. In terms of younger renters, however, JRES says it is important to recognize that many are burdened by student loan debts and may not be making adequate salaries to justify renting some of the apartment units popular among developers.
An article in The Wall Street Journal in May indicated that continued high rent in cities like Denver is a result of the type of apartments being built. The article points out: “ [I]n some places, including Denver, Tampa, Baltimore and Phoenix, virtually all new apartment construction has targeted to high-end renters.” As a practical mat-
ter that means the developers of the high-end apartment complexes may soon be in a bind. The higher rents are necessary to pay the loans taken out to build the units and a downturn in the economy may result in a significant amount of bank foreclosures similar to what happened in Denver when the office building boom crashed in the 1980s.
But studio apartments, also called “efficiencies” by some, are returning as a popular unit type, especially in new upper-rental rate apartment communities. Many of these projects are oriented to younger residents who are attracted to urban locations and amenities, but prefer to live alone and do not need large apartments. Smaller “micro” apartments are popular in expensive cities such as New York, San Francisco and Seattle and are coming to Denver. One such project is Turntable Studios, recently opened in a former hotel near Sports Authority Field. There will be apartments at Turntable under 350 square feet but will cost over $1,000 a month to rent.
Demand Is Key
Overall, since upcoming supply is known, it now all boils down to demand. JRES recommends that buyers, sellers and renters maintain a healthy skepticism and carefully track employment growth. Even if there is a downturn in the apartment market, however, it should not last more than several 
years as long as the economy remains healthy and excessive development is avoided, JRES suggests.
James Real Estate Services, Inc. is a commercial real estate appraisal-advisory firm based in Cherry Creek. The firm offers a wide range of real estate appraisal services and products that help clients effectively analyze commercial and residential real estate assets and markets — as well as manage asset risk to realize asset value in a changing real estate marketplace. Information: 303-388-1100.
A Dozen Denver Apartments Open In 2015’s Second Quarter; Another In Glendale
A dozen new apartment complexes opened in Denver County during the second quarter of 2015 alone. Furthermore, Solana Cherry Creek — a new 341-unit development — just opened in nearby Glendale.
Apartments opening in Denver in recent months are:
Avenue 8 — Offering 163 units at 5805 East 8th Ave. by Rosemark Development Group in the Denver East.
Peregrine Place — A 65 unit complex by Catamount Properties at 4400 East Mississippi Ave. in Denver South.
Platt Park North — This is a 60-unit town home rental complex at 110 East Mississippi Ave. by Pando Holdings.
Steele Creek — The 12-story building at 3222 East 1st Ave. in Cherry Creek East is by BMC Investment.
Studio LoHi — Simpson Housing Group has opened this 114-unit complex at 2559 17th St.
by Mark Smiley | Sep 25, 2015 | Main Articles
by Charles Bonniwell
Mayor Michael Hancock’s appointment of CRL Associates lobbyist and former councilwoman Allegra “Happy” Haynes as newest executive director of the Denver Department of Parks and Recreation has been met with widespread criticism from across the Denver political spectrum.
An expensive national search was undertaken by the city for the new parks executive director headed up by a 10 person search committee which included Haynes. Denver Mayor Michael Hancock brought the search to a sudden halt declaring that he was simply going to appoint his long-term political ally to the $139,500 position without further ado. He declared sua spointe to the surprise of the search committee that “she is going to make one dynamic, awesome director of the city parks and recreation.”
Others were less enthusiastic about her appointment. Park advocate Trish Abbott noted, “She comes in the great tradition of Wellington Webb’s first appointment to the position, Charles Roberts, who went to jail for stealing a grease trap from the parks department to put in an A&W he had an interest in over in Aurora. The appointment demonstrates how little this mayor cares what the citizens of the city think. I would like to think this is the lowest of the low but we have got many more years ahead of us with Mayor Hancock.”
Denver historian Phil Goodstein declared, “Hancock has clearly shown he has a thorough contempt for parks and quiet open space. On the contrary, Hancock demands parks become commercial ventures. Where possible, he has even been ready to sell them off.”
As for Haynes, Goodstein opined, “She has been part of the nefarious machine of CRL Associates, a lobbying firm which puts Brownstein Hyatt to shame in terms of directing city council and assuring the adoption of very bad policy . . . If anything, Haynes is the personification of old institutional Denver: smug self-centered, utterly linked to the Democrats, and having no conception that any alternatives are possible.”
Few individuals were willing to go on the record praising her appointment although City Councilman Albus Brooks, a political ally of Mayor Hancock and Haynes declared that Haynes is “a stateswoman of Denver” who is well equipped to deal with the “complexity and the politics” of the job.”
Upon assuming the job Haynes declared that the job was “an appointment of a lifetime” although at age 62 she is approaching the normal retirement age for Denver employees.
Haynes has quickly become mired in controversy as she does not wish to give up her position as president of the Board of Directors for Denver Public Schools. She is up for re-election this November.
Denver Attorney Joe Halpern indicated that “Happy Haynes was a prime mover in the destruction of the Hentzell Park Natural Area. She advocated for the land swap as a Denver Public Schools board member.”
Community activist Dave Felice was not pleased by the appointment and her desire to hold two positions noting, “How can we expect better from someone who was in favor of giving away 11.5 acres of Hampden Heights North (Hentzell) Park?”
While some individuals publicly raised the question of finding serious conflicts of interest in being both the executive director of Denver and president of the Denver School Board, Haynes does not. She said, “During
the day, I’ll devote my work time to my role in Parks and Recreation,” and her nights she would work on being the president of the School Board. She has requested an advisory opinion from the Denver Ethics Board. That Board has come under fire itself for failing to find conflicts of interest in various other cases involving members of the Hancock administration including Planning Board head Brad Buchanan and interim Parks head Scott Gilmore and his wife Councilwoman Stacy Gilmore.
Trish Abbott noted, “I don’t see a problem. Ms. Haynes is best known for doing what she is told although with no small degree of utter incompetency. I am sure she can do two jobs very badly as easy as she can one. She is after all an all purpose political hack. In either position she is simply doing whatever the mayor or the people that control him want done, so I don’t see any conflict of interest. Moreover the Denver Ethics Board has indicated by and large that conflicts of interest don’t really exist as a theoretical concept in Denver government these days under Mayor Hancock no matter how blatant.”
Some citizens in Denver have indicated that they believe the entire Parks Department is under the control of lobbyists for real estate developers. When the Parks Advisory Board opposed Mayor Hancock’s giveaway of undesignated parkland in Hentzell Park he began to replace its members with real estate lobbyists like Marcus Pachner and Happy Haynes’ sister Khadija Haynes.
Regarding the appointment of Happy Haynes as executive director of Denver Parks, Joe Halpern stated, “She is the proverbial fox in the henhouse.”
Increasingly some good government advocates in Denver see the only solution to the destruction of the Denver Parks and Recreation Department is to advocate for voter approved Charter changes to limit the powers of the mayor. Joe Felice suggested, “Perhaps it is time for an elected independent park commission to take these decisions away from the mayor’s office.”
Trish Abbott and some other park advocates indicate that they concur with Felice’s concept. Whether they can make a vote a reality is an open question according to political insiders.
by Mark Smiley | Sep 25, 2015 | Editorials
Michael Hancock’s appointment of CRL Associates lobbyist and former politician Allegra “Happy” Haynes as the head of Denver Parks and Recreation was the final straw for many Denver citizens regarding whether the municipal government of Denver can be reformed as it is presently constituted to respond to the wishes of its citizens. With the ethically challenged Brad Buchanan in charge of Denver Community Planning and Development and the citizen boards of both Planning and Parks stuffed with lobbyists and political shills, there is almost no effective citizen input anywhere in the process. At one time local neighborhood associations thought they had the ear of their duly elected city councilperson, but in many cases that is no longer true.
Citizens have fought back bringing lawsuits in the case of numerous ill-conceived projects, but lower Denver courts to date appear to believe their job is to prevent any of the cases from ever being heard by a jury of Denver citizens. Many residents increasingly believe the system most definitely does not work and the deck is stacked against the average citizen in favor of real estate developers and other politically connected groups.
Historian Phil Goodstein has queried why we even pretend that people like Happy Haynes and Brad Buchanan are anything but bought and paid for hacks of CRL Associates and Brownstein Hyatt. He has suggested, somewhat facetiously, that we monetize the process similar to Hancock’s efforts to monetize Denver parks. Under the Goodstein plan the positions of executive directors of parks and planning would be put out to bid to the likes of CRL Associates and Brownstein Hyatt “who would pay to name their puppets to office.” Would his suggestion actually be any worse than the present system?
At the spring municipal election three candidates — Wayne New, Rafael Espinoza and Paul Kashmann — upset candidates strongly supported and funded by Mayor Michael Hancock and his coterie of lobbyists and real estate developers. But as Rafael Espinoza has articulated the Denver City Charter invests enormous power in the Denver mayor. Maybe it’s finally time to take some of that power away and in turn empower average citizens of the City and County of Denver.
Concerned citizen Dave Felice has suggested that we alter the City Charter with a citizen initiative to provide for a separately elected independent parks commission that would appoint its own executive director. While we are at it, a separately elected Community Planning and Development commission would also be appropriate.
Of course Denver is not the only municipality in Colorado that has seen its planning process hijacked by real estate developers. In Aspen and Steamboat Springs the citizens got so tired of an endlessly corrupted process that they changed their city charters to require a public vote to approve certain real estate projects. You have the feeling that some truly destructive neighborhood projects now under construction in Denver would have never seen the light of day under such a system.
The City Council could hardly object to such charter changes. In 2010 they merrily gave away to the mayor any and all control of the parks in Denver. The suggested charter changes would simply in turn take it away from the mayor and give it back to the people not only for parks but also development and planning. As a practical matter what in the world do the citizens of Denver have to lose from such changes to the City Charter?
— Editorial Board
by Valley Gadfly | Sep 25, 2015 | Valley Gadfly
Our expectation as we go outside for work or play this month — on, say, a haunting cloudy day with autumn leaves crunching underfoot — is the Valley’s mystical transformation into fall. It is an unnervingly freakish feel. Streets are filled with spooky people who by all appearances are enjoying a moonlight cemetery excursion.
The hootenanny of Halloween happenings kick-up as quickly as the fall foliage in offices, homes, street corners and paranormal parties producing ghoulish possibilities.
Here are our spine-chilling choices for shopping, dining and entertainment to ward off evil spirits, witches and monsters so you can sink your teeth into fall fun:
3 For a relaxing break from this month’s freakish Halloween events take in the music review Sondheim On Sondheim. Dazzling show plays weekends at the Cherry Creek Theatre, Oct. 2-25. Information: 303-800-6578.
3 Four Mile Park’s Pumpkin Harvest Fest is perfect spot to enjoy fall fun, foliage and music Oct. 3-4, 10 a.m.-4 p.m. Information: 720-865-0800.
3 Monumental paintings and lithographs by Fritz Scholder titled Super Indian are at the Denver Art Museum, Oct.4-Jan. 17. Information: 720-865-5000.
3 See musical story of a poet who keeps mythical creatures as pets as St. Martin’s Choir, Ballet Arts and Confluence String Quartet perform at St. John’s Episcopal Cathedral Oct. 9, 7:30 p.m. Information: 303-298-1970.
3 Enjoy top fun on Halloween and every Thursday and Saturday as the Bull & Bush offers King and Queen cuts of prime rib. Information: bullandbush.com.
3 City’s oldest remaining greenhouse City Floral welcomes the season with fun Fall Festival Oct. 17-18, 10 a.m.-4 p.m. Information: 303-355-4013.
3 Haunted by roof or storm damage to your home? Don’t freak out with spooky offers, contact Core Contractors. Information: 303-997-1559.
3 Delight in frightful fun while viewing fabulous fall foliage by taking the entire family to Denver Botanic Gardens’ newest event, Glow At The Gardens, Oct. 14, 21 and 28. There will be colorful pumpkin displays, luminaria-lined pathways and cocktail parties each evening, 6-9 p.m. Fall-themed activities, scary stories and scavenger hunts are included. All activities are built in to the admission price but there are separate costs for food plus a cash bar. A different musical group will entertain in the Glow Lounge each evening. Information: 720-865-3500.
Like humans, plants have different personalities and change their colors as Halloween looms. That’s why some have colorful masks while others don’t. Whether you have a big yard, live near a park or are a hop, skip and jump from downtown, observe and take pleasure in autumn’s parade of bright yellow, orange and red colors.
The cool waves of fall colors coupled with streets filled with costumed creatures create hypnotic and haunting surroundings that produce an eerie, frightening feeling.
Rustic architecture, tree-lined sidewalks and creepy characters make every street a Boo Boulevard. Expect haunted houses, tortured souls and spooky parties to cast a spell every “witch” way you turn. Enjoy carving out memories as well as carving pumpkins but with a monstrous 31 days of Halloween fun be sure to take a few “coffin” breaks.
— Glen Richardson
The Valley Gadfly can be reached at newspaper@glendalecherrycreek.com.
