The abandoned site of the Warren Church may be remodeled into supportive housing units.
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 St. Francis Center operates an employment service for the homeless from one of the old Warren Church buildings.
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.
In Colorado there has been little notice that the storied multi-billion dollar department in charge of the state’s transportation needs, CDOT, has evolved into little more than a massive piggy bank for former employees who have set up consulting firms to perform the jobs that CDOT used to perform itself.
When the State Auditor did a Performance
Audit on CDOT it found that 80 of the 84 consultant contracts it looked at had
serious flaws including “unapproved consultants labor rates, contracts without
proper approvals and contract terms that did not comply with state
requirements.” Yet in 2019 another quarter billion dollars will have been
squandered on consultants by CDOT. A total revamping of how CDOT performs, or
fails to perform, its basic functions needs to be undertaken.
Even more scandalous is the
anti-competitive practices undertaken by CDOT pursuant to a 2013 change in the
law whereby instead of requiring low bid for projects over $50,000 they are awarded
on the so-called “best value” method of Design Build (DB) or Construction
Manager/ General Contractor (CMGC). Since there is no clear public criteria for
determining who wins a contract under this system it has become a cesspool of
potential corruption. Not surprisingly it has led to only two firms controlling
over 80 percent of the market — Kraemer North America (a subsidiary of the
Japanese mega firm Obayashi Corporation) and Kiewit Corporation out of Omaha,
Nebraska. Experts estimate that the CMGC method is costing over 30 percent more
than of what it would cost under low bid competition and in turn costing
Colorado taxpayers billions of dollars every year.
The change in the 2013 law was comically
called the “Keep Jobs In Colorado Act.” Instead the act has resulted in
destroying or badly damaging Colorado firms who previously dominated the
competitive bid process. While the Colorado press has largely ignored the
scandal at CDOT it has not escaped the purview of federal authorities. The
national Engineering News-Record on November 29, 2019, announced that the
United States Department of Justice had “launched a multipronged effort to root
out bid-rigging, price fixing and other forms of collusion in construction and
other sectors on local, state and federal government funded contracts.” There
is now a strike force which is comprised of prosecutors in Washington as well
as 13 U.S. Attorneys offices in addition to FBI investigators and personal from
four inspector general offices.
CDOT Director Shoshana Lew
One of the key U.S. Attorney Offices is
that of Colorado. One of the items that possibly brought Colorado onto the
radar screen was the purported statement by a key member of CDOT. The high
ranked CDOT official allegedly stated that the $20 million contract for repair
of the Highway 36 sinkhole should not be competitively low bid because CDOT
could not guarantee, under such a method, that it be awarded to their friends
at Kraemer.
Federal authorities are apparently aware
that bid rigging has expanded far beyond various contractors illegally getting
together and now may involve state agencies.
In looking at CDOT one of the key areas of
investigation may be “bid suppression” as a form of a collusive bidding scheme.
The “Guide to Combating Corruption & Fraud in Development Projects” notes:
“Corrupt government and procurement
officials can facilitate the bid suppression efforts (e.g. by disqualifying
other legitimate bidders during the bidding process) . . . .”
Many local contracting firms in Colorado
are increasingly upset that they are not allowed to take an actual part in
bidding for CMGC projects. They are falsely urged to apply to make it seem that
the process is legitimate and then excluded by CDOT on criteria that only
applies to massive national or international firms like Kraemer and Kiewit.
According to federal sources one of the red
lights for a corrupt bidding process is lack of transparency. Under the prior
low bid process the exact figures for all parties were available after a
contract was awarded so losing bidders could see where they fell short. When an
in-state contractor asked CDOT for a copy of the winning bid under a recent
CMGC project he was given a document with almost all of the key relevant
information redacted by CDOT as shown at right.
Federal authorities are apparently hoping
to bring a case of bid suppression that would make national news as to ensure
the greatest effect. The indictment of Shoshana Lew or other high CDOT
officials regarding the duopoly that has overtaken state construction projects
would certainly fit the bill. However, there is no present indication of
personal financial benefit by any present CDOT official, which while not
necessary in such cases, is still preferred by some federal authorities.
Regardless of federal efforts to clean up
uncompetitive bidding in Colorado, it is clear that CMGC method of awarding
projects should be suspended in Colorado until a transparent competitive system
that will save Colorado taxpayers billions of dollars is undertaken. That and
tight restrictions on consulting contracts with CDOT are both long overdue and
badly needed.
The Winners And Losers Of Legalized Sports Betting In Colorado “One of the worst things that can happen to you in life is to win a bet on a horse at an early age.” Dan McGoorty
by Luke Schmaltz
On May 14, 2018, in a lawsuit filed by the
State of New Jersey, the Supreme Court of the United States ruled that the
Professional and Amateur Sports Protection Act (PASPA) of 1992 was
unconstitutional. Removal of this piece of anti-gaming legislation opened the
sports betting floodgates. Currently, a deluge of widely accessible sports
wagering is fanning out across the nation and is steadily flowing to the north,
to the south, across the Midwest and toward the west coast.
Mobile Betting: Emptying your bank account is just a click away. App-based betting means no more waiting in line at the wagering window.
After the Garden State legalized sports
betting one month later, other states began following suit (19 total to date)
including New York, Pennsylvania, Iowa, Illinois and most recently, Colorado.
Currently, 18 more states including Kansas, Missouri, Texas and California are
introducing similar legislation that will allow anyone with an internet connection
or a mobile device to get in on the action. The indications are two-fold —
pointing to massive tax revenues for state programs along with daunting
potential for negative social impact.
In Colorado, the ballot measure that passed
by a narrow margin on November 5 will grant the 33 licensed casinos in Black
Hawk, Central City and Cripple Creek the ability to offer betting on
collegiate, professional, Olympic and motor sports. Beginning in May 2020,
wagers can be placed in person at a casino sportsbook or online from anywhere
in the state. The second part of that allowance is where the issue compounds.
Widespread accessibility equates to more tax revenue and at the same time means
more inexperienced gamblers and folks who are simply prone to addictive
behavior will be blowing kisses from afar at lady luck.
The Good
Colorado Proposition DD passed by the
thinnest of margins — 50.8% to 49.2% to be exact — which equates to about
20,000 votes or so. It can be safely surmised that the idea won favor with voters
because it was introduced in conjunction with a previously passed bill applying
a 10% flat tax on sports betting.
This means that a sizable chunk of net
sports betting revenue will flow directly to the coffers of the Colorado Water
Conservation Board. These funds will be leveraged to implement the state’s
water plan (introduced by the office of former Governor John Hickenlooper) to
meet agricultural needs and the demands of a booming population. This explains
the appeal of the measure across so many demographics within a populace that is
seemingly more concerned with infrastructure planning, economic growth and
environmental issues and less adamant about the right to legally gamble on
Sunday’s big game.
For those who are adamant about their right
to legally wager on sports, the money is doubled, so to speak. Not only can
they gamble the game of their choosing without breaking the law, they can skip
waiting in line at the betting window and play the odds from the convenience of
their homes.
The Bad
Now that anyone in Colorado over 18 will
soon be able to gamble on any game at any time from anywhere, there’s an
excellent chance that the more pertinent issues listed above may be further
obscured by this newfangled vice. The best way to speculate on what is in store
for our Rocky Mountain State is to look back to New Jersey, where sports
betting has been legal for over a year. Officials from the Council of
Compulsive Gambling of New Jersey (CCGNJ) are expressing concern over the fact
that a 2019 Rutgers University survey discovered that 6.3 percent of state
residents have a gambling disorder — three times the national average.
Executive Director Neva Pryor explains: “It’s that accessibility that makes it
Legal In 2020: Sports betting will be legal in Colorado starting in May 2020. Bet on any aspect of any sport in real time from anywhere.
[gambling]
so easy.” Meanwhile, CCGNJ co-founder Arnie Wexler attests: “Two
years from now you won’t be able to get a seat in a Gamblers Anonymous room
because … people that never would gamble on sports illegally are now gambling
on sports.”
This is due largely to the fact that
participants are using online sportsbooks like FanDuel and DraftKings and/or
mobile apps developed by individual casinos. The convenience of digital wager
placement and the allure of immediate payment have direct appeal to those who
subscribe to the instant gratification mindset. Couple that with rampant cell
phone addiction that is already in place for many, and you have another “double
your money” scenario. On this side of the coin, however, the odds play on the
inherent weaknesses of those prone to compulsive behavior.
The Ugly
Initially, the top four major professional
athletic leagues — NFL, NBA, MLB and NHL — opposed legalization of sports
gambling. Yet, since PASPA was overturned they have all quickly assimilated
into the marketplace to secure their cut of the action. The NFL has inked a
sponsorship deal with Caesars Palace while the other three leagues have similar
contracts in place with MGM Grand.
Instant: Legalized sports betting has instant gratification appeal.
The four entities above, along with boxing,
golf, horse racing, tennis, wrestling and many more (that means you, college
sports) have well-documented histories of game fixing, rigging schemes and
gambling infestations of many stripes. Now that the leagues themselves have a
direct interest in betting revenue, gambling terms like “house rules” and “the
fix is in” may take on meaning of a never-before-seen magnitude.
What’s more, ESPN and FOX Sports 1 both
have shows dedicated to sports betting. As the phenomenon sweeps the nation
state by state, the ubiquity of it all could spell a distinct change in how
events are called by sportscasters. Wager and odds-based commentary may become
the dominating aspects of the live broadcast narrative rather than the facts of
the contest at hand.
Finally, to top it all off with a formidable one-uppance, not only can mobile app gamblers wager on an event when it is still underway, they can also bet on just about any aspect of the game at hand. At any point during play, a bettor can wager on such factors as Brandon Allen getting sacked a certain number of times, Jamal Murray hitting his next three-pointer or whether Nolan Arenado connects with the next fastball. Whatever the sport — that’s one way to empty out a bank account in record time.
It’s been over 50 years since Ed and Connie
Thomas first met here in Denver, nearly 47 years since they bought their first
and only home together, and 25 years since Connie was diagnosed with
progressive multiple sclerosis.
Friends Of The Family: From left, Barbara Betcher, Ed Thomas and Ashlie Woods.
The first 15 years after the diagnosis
Connie seemed to be doing okay, but eventually the disease advanced to the
point where she couldn’t work and had to retire. While Ed took care of her in
the beginning of her diagnosis, he could no longer handle the responsibility of
caring for his wife. He had to make the difficult decision to move his beloved
Connie into an assisted living facility, and soon the house became too much for
one man. So, he resolved to sell their family home.
A former Denver City Councilman, a police
officer of 23 years with the Denver Police Department, and former editor of the
Glendale Cherry Creek Chronicle, Ed Thomas has played an important role in the
Denver community. With his decision to move, he soon found himself seeking
support from the community that he helped serve and protect for so many years.
Friends of the family, Ashlie Woods and
Barbara Betcher, two brokers from the local Denver real estate firm Leonard
Leonard & Associates, stepped in to assist Ed with the sale of his home.
Woods and Betcher, who have known Ed for over 20 years, told him, “we’ll get
you through this and we’re ready to help in any way we can.”
Woods and Betcher were there from the
beginning, in 2016 when the decision was made to move Connie into assisted
living, for not only the physical process of moving but the emotional process
as well.
“They took control of the entire process
and did everything that needed to be done. I was a basket case, and they
handled everything,” Ed recounts. The decision to sell did not come easily.
Ed’s home meant, and still means, everything to him. It’s where he spent his
adulthood raising his family, a son and a daughter, and where he welcomed home
his three grandchildren. It is the only place he had known for years.
The Thomas Home: The family home at 7th and Cook — purchased in 1972.
Woods describes the entire process as “a
hands-on project, from beginning to end.” First, they needed to clear out the
house and downsize Ed’s belongings. Ashlie took the time to walk through with
Ed, often a couple times a week, to determine what needed to go and what he
could keep.
Next, Woods and Betcher needed to get the
house in shape and ready to show. They began with making small repairs
including updating the flooring, plaster fixes, and other jobs to ensure the
house was in saleable condition. They hired a staging company, while Betcher
helped with most of the staging.
Thomas proclaims, “It was absolutely
perfect and spotless.” So much so, that the first weekend the house went up for
sale, one of the first couples to walk through the door said, “We’ll take it.”
The house went under contract quickly,
selling for asking price the first weekend it was on the market.
With the quick sale of his home, Thomas
needed to move, and do it soon. When moving day came, Woods was there, stepping
in for his daughter, who could not be there to help. Without hesitation, Woods
assumed the role and offered her help.
Family Photo: Photo taken just after Connie was diagnosed with MS.
In helping find Thomas a more permanent
home, Betcher found the condo Ed resides in now, making sure he didn’t overpay
and negotiated the best deal for him.
Woods describes Thomas as a “real trooper
throughout this whole process.” With just his son here in Denver, Woods and
Betcher assumed the role of family and not just the professionals they are.
Taking the lead throughout the entire
process, Woods and Betcher went above and beyond what was required of them, all
without taking a commission for three years worth of work.
While life didn’t quite turn out as
expected, Thomas feels blessed to have his wife still with him despite this
disease. He is grateful for his life and what it has afforded him and is
appreciative of the community that gathered around him in a time of need.
Simply put, “You don’t get that lucky in
life very often,” Thomas expresses with gratitude.
Thomas says he would not have survived this
situation without his children, Betcher, or Woods. And for those who find
themselves in a similar situation, Thomas shares this sentiment: “Cherish the
love of your family and friends because one day you will need them.”
Strong Family: A family that has stayed
together with the help of their community.
Denver Union Station puts on quite the show
every holiday with a variety of events, festive decorations, and classic
holiday cheer for the entire family to enjoy. Don’t miss the quintessential
holiday celebration at Denver’s iconic landmark with these events and
activities that are sure to get you in the holiday spirit.
Photo courtesy of Denver Union Station
Grand Illumination
Friday, November 29, 5-8 p.m.
The holidays officially kick off with the
Denver Union Station Grand Illumination event. Join in the merriment of the
season with the ceremonious lighting of the Union Station building and the
40-foot Plaza Christmas tree. Entertainment is taken to the next level with a
vintage holiday performance by the Denver Dolls, holiday jingles by the Denver
Bronze, and a visit by Santa and Mrs. Claus. Open to the public and free to
everyone, with the lighting taking place around 6:15 p.m.
Union Station’s Holiday On The Plaza
November 30-December 31, 2019
Monday through Friday, 3-10 p.m.
Saturday and Sunday, 10 a.m.-10 p.m.
Join the first ever Union Station’s Holiday
on the Plaza event as the Terminal Bar’s Patio will be transformed into a
holiday winter wonderland! Throughout December, join Union Station for themed
family-friendly DIY crafts, Christmas trivia, live carolers, and more!
Santa At The Station
Sunday December 1, 8, 15, and 22
Santa Claus: Visit Santa at the Station on the first four Sundays in December. Photo courtesy of Denver Union Station
9 a.m.-2 p.m.
Kris Kringle will make his annual trip from
the North Pole to Union Station the first four Sundays in December. Check-in
when you arrive with Union Station’s new text-to-wait system and enjoy all the
station has to offer. Visits with Santa are free and open to the public, but
they are also offering a paid option called the St. Nick Express Family Pass.
For only $50, you can reserve a time slot and go directly to the front of the
line at the time designated. The pass will also include a commemorative Union
Station Christmas ornament.
Breakfast With Santa
Saturday, December 14, 8-11 a.m.
Visit Santa himself at breakfast with
Santa. Bring the kids and enjoy a curated breakfast buffet, story time, and of
course photo opportunities. For adults, Christmas cocktails will be provided
alongside breakfast. To help remember the event, attendees will receive a
commemorative Union Station ornament.
Shop & Dine
Get your Christmas shopping done early with
a visit to Union Station. With several shops located inside, you are bound to
find something for all those on your wish list. For the bookworm in your life,
stop in at a slightly smaller version of Tattered Cover Bookstore or pay a
visit at the 5 Green Boxes and walk away with a locally made craft, jewelry,
and gifts for those on your list. After you’ve crossed everyone off your list,
be sure to stop in at one of the many gastronomic choices that call Union Station
home. From breakfast at Snooze to an elegant dinner at Stoic and Genuine and
drinks at the Terminal Bar, there isn’t a reason to go anywhere else!
Grab A Drink At The Cooper Lounge
Add a little flare and a bit of decadence
this holiday season with Denver’s most glamorous lounge, The Cooper Lounge.
Enjoy views of downtown and Union Station’s Grand Hall Christmas tree, all
while sipping on one of their holiday drinks. Indulge in high-end, hand-crafted
cocktails, an extensive wine list, and food to pair it all with, for the
perfect night out this holiday season.
New Year’s Eve Party
Tuesday, December 31, 9 p.m.-1 a.m.
Start the New Year off right with Denver
Union Station’s New Year’s Eve party. Enjoy one evening, with three different
dazzling experiences.
Ring In The New Year: New Year’s Eve at Denver Union Station.
The Great Hall Silent Disco & Light
Show brings an epic light show to Union Station’s Great Hall all while dancing
to your choice of three live silent disco DJs, using provided wireless
headphones.
The VIP Speakeasy is a great way to start
2020 with the new “Roaring Twenties” and an exclusive VIP speakeasy in the
historic lower level of Union Station. VIP tickets include unlimited
complimentary drinks and hors d’oeuvres, a musical piano performance, and
access to the Great Hall Silent Disco and Light Show.
Or enjoy table service at The Cooper
Lounge. Partake in a selection of passed canapes and a complimentary midnight
toast with Ruinart Blanc de Blancs Champagne. Plus, patrons will enjoy access
to the Great Hall Silent Disco and Light Show.
Controversial: Short-term rentals in Denver are becoming more popular but not with everyone. Antagonists have claimed safety concerns but also lost revenue when only renting for a few days. Many homeowners skirt the rules by renting out a property that is not their primary residence.
The methodology dedicated to handling
Denver’s short-term rental (STR) industry is fairly new, as the governing
structures used today are from a 2016 city ordinance. Ongoing efforts to find a
perfect solution in an imperfect situation — one that makes everyone happy —
have been difficult to find. Denver is faced with rapid growth, and this
expansion has fallen upon current and future residents to placate.
Almost anyone who has heard of STRs has an
opinion about them due to a personal experience of some kind. Yet, multiple
people in the Mile-High City have declined to tell their story, and most who
elected to share spoke in hushed, prudent tones with lowered eyes. They shot
frequent glances around and recounted their anecdotes incompletely.
“I was told not to [speak on the record],”
said Rebecca after a pause. “I was told that there could be retaliation. I
don’t know what’s going on. I don’t know, I just think this is much bigger than
it appears.”
Rebecca declined to provide her last name.
She chose not to elaborate on her remarks, define what she believed retaliation
would entail or from whom it could come. A large portion of those who spoke to
the Glendale Cherry Creek Chronicle would not divulge any information at all
but acknowledged they were affected in some way.
Denver’s STR conversation has many sides.
The business side has provided crucial financial benefits for some. Others have
lost faith in their neighborhood’s economic value. But a report released in
April by the Denver’s Economic Development and Opportunity Department exhibited
that STRs have not had a significant impact on the cost of housing. According
to the report, only one percent of Denver’s housing supply is an STR, and revealed
weak correlation to local rent increases.
Still, like Rebecca, some are more
concerned with how STRs affect daily life in their community.
Sophi told the Chronicle that people have
mistakenly tried to enter her home in the middle of the night on multiple
occasions, as recently as this month. Intruders on her property were supposed
to be at the STR next door where they were staying.
Popular Site: Airbnb was founded in 2008 and is an online marketplace for arranging or offering lodging, primarily homestays, or tourism experiences. It is one of the most popular ways for short-term rentals to be listed and discovered.
“The dogs woke up and were barking and
trying to figure out what was happening — I thought somebody was breaking in,”
said Sophi. “I am often alone in the house. It’s not a great feeling to be next
to a really drunk [group of] guys or to have people trying our door. I think
once you get that many people together who are not all with it, that’s a safety
issue.”
Others have expressed similar safety
concerns but declined quotation.
Rebecca and Sophi share a home in Denver’s
Washington Park neighborhood next to a “mega-mansion” of roughly 2,000 square
feet. According to Sophi, the property has often hosted bachelor parties where the
guests’ goal is to “drink as much as they can and smoke as much as they can.”
As an STR property manager, David Pardo’s
“bread and butter” are “big and noisy parties.” Pardo, who has been an STR host
for over five years, has managed a combination of properties ranging from
one-bedroom apartments to larger townhouses. In an interview with the
Chronicle, he said that over 1,600 groups of guests have utilized his
properties. Some of these sites have specifically catered to events such as
bachelor and bachelorette parties, and Pardo estimated that he has hosted over
100 of these gatherings. These homes are located in areas of commercial use
where local zoning laws do not prohibit the operation of business, and
downtown, where noise is already generated from local bars and nightlife.
According to Pardo, the vast majority of
his guests have not broken any rules established by both the hosting platform
and himself. Most of the harm Pardo has experienced caused him personal
logistics problems but hasn’t affected close-by residents in any fashion.
“All the neighbors of my properties know
exactly what’s going on. They have all the contact info,” said Pardo. “We’ve
got all the noise awareness systems, sensors, cameras — we know what’s going on
because we don’t want our guests to have a [negative] impact. We build that
into our system. That’s not a requirement that the city has. That’s a
requirement that I have for myself. It’s personal practice for the sake of my
business.”
Not all STRs are in stride with legality. Denver’s
2016 rules state that an STR can only be operated from a primary residence. In
June a couple was charged with felonies for running an STR outside of their
primary residence.
Denver’s Office of Excise and Licenses
spokesman Eric Escudero said in a recent email correspondence with the
Chronicle that Denver is not anti-STR and explained how the city has
investigated potentially illegal STRs.
“After collecting evidence that shows
people are operating an STR that is not their primary residence, Denver frequently
sends out an affidavit to suspected illegal STR operators giving them one last
opportunity to come clean,” according to Escudero. “If they lie on the
affidavit attesting their STR is their primary residence, they could be charged
with the crime of influencing a public servant.”
To mediate the STR conversation and push
the industry in Denver toward more effective operation, Denver’s Short-Term
Rental Advisory Committee (STRAC) has orchestrated the rollout of a dual-phased
plan. The first section is focused on updating current language and defining
terms such as “primary residence” in a clearer fashion as 2019 concludes.
The Committee’s mission is to “provide
guidance and recommendations to Excise and Licenses policies pertaining to the
STR licensing program.” They have hosted meetings that encouraged public
comment, and members of the Committee include STR hosts, industry stakeholders,
residents of the neighborhood and elected city officials.
Hosts of STRs must also obtain licensure to
operate lawfully. Denver currently has a 78.3 percent compliance rate, one of
the highest in the nation according to the most recent data from the Office of
Excise and Licenses. In the same data set is the compliance rate of other major
cities: Nashville, 59 percent; New Orleans, 58 percent; San Francisco, 42
percent; Austin, 18 percent.
And while complaints about STRs are the
most common to the Office of Excise and Licenses, this data has shown that
Denver has displayed positive trends. STRAC provided data at their October
meeting as well; complaints about STRs to the 311-information hotline have gone
down from 92 in 2018, to 72 as of October 2019.
Phase two of STRAC’s plan is set to roll
out as 2020 hits its second quarter. Their proposed plans included finding the
best practices and legal parameters for property management requirements, as
well as working with other cities to draft effective new language centered
around platform accountability.
Industries that have thrived due to STRs
have taken a hit. Joyful Soul Cleaning’s owner Kayla Darling has operated her
business within STRs. She has been able to create jobs for many others in part
due to rental properties and joined the conversation with the hopes of changing
peoples’ hearts and minds but told the Chronicle that she has lost business due
to the decrease in rental properties.
“It’s definitely important to me that our voices are heard, so that we can say, hey we want to work with the city, we want to work with the communities to make [the STR business] a positive experience for everyone that we can,” said Darling. “But then also, we don’t want half of to go away.”
According to the Office of Excise and
Licenses, the number of unique property listings has dropped 21 percent since
last October, and 158 applications for licensure withdrawn since April.
Additionally, the total number of active licenses has gone up 24 percent. This
provides evidence that more residents have looked to follow compliance rules,
but less have listed their homes as an STR.
One thing is clear: the growing pains of
Denver’s STR industry can only be cured with efforts from all sides.
“Please, in all of this just consider that
there’s a very large portion of [STR] hosts that want to help,” said Joe (who
declined to give his last name). “I’m trying to assume some of the
responsibilities, and some of it is — we simply don’t even know [about
complaints]. I’ll tell you this. There’s change coming from the host community.
We’re taking more responsibility, we’re stepping up.”
