Spectacular Summer Surge In Denver’s Short-Term Rental Listings

Spectacular Summer Surge In Denver’s Short-Term Rental Listings

Value Has Grown To $112 Million In Just 12 Months; Complaints Soar As Homes Become The Motel Next Door

by Glen Richardson

Highlands Hot: Unique and nostalgic homes have made short-term rentals in the Highlands neighborhood one of the hottest.

Valley neighborhoods are becoming more and more concerned about short-term rentals by homeowners through Airbnb and others. Their complaint is about the stream of homeowners, some new, renting the house next door for days or up to a few weeks. In neighborhoods such as the Highlands and the Golden Triangle many say the annoyance is progressively on the rise and threatening to escalate into citywide anger and fury.

That’s not a big surprise to Denver: Between January and July of this year the city received 112 complaints concerning primary residence, typically from local neighbors. Furthermore, residents contend that it’s unfair to expect neighbors to be the driving force behind legal compliance.

More than a year and a half after the City of Denver first tried to crack down on short-term rentals, the blossoming industry — buoyed by thousands of new homeowner hosts — has consistently stayed steps ahead of regulators. City records, combined with data provided by Denver-based analytics firm AirDNA reveals incessant problems with the city’s efforts to control a market that is bringing in more than $100 million a year.

Compliance Collapse

According to a study done and reported by BusinessDen — a website for local business news — less than half of the city’s known short-term rental landlords comply with licensing regulations. The bottom line, the study concludes: “The primary-residence requirement, designed to calm the fears of homeowners that their residential neighborhoods could become dominated by the motel next door has proven toothless and largely unenforceable.”

Denver’s Department of Excise & Licenses says the compliance rate is down due to the surge in people listing short-term rentals in the city. That’s because short-term rentals in Denver have grown in value to at least $112 million in the last 12 months. Moreover, it’s expected to top $200 million by 2021. AirDNA figures also show that properties in prime locations have annual cash flow topping six figures.

In only eight years San Francisco-based Airbnb’s initial plan to allow homeowners to host business travelers in a spare bedroom or to rent their family home to tourists while they’re out of town has made it a $25 billion c

Home Away From Home: Price versus hotels and all the comforts of home have given a big boost in demand for short-term rentals.

ompany. The reason is simple: In comparison to prices for staying in a hotel the cost of a short-term rental is significantly lower. A short-term one-bedroom home in Denver often starts as low as $50 per night. With a hotel there’s typically a bed, a television and maybe a desk and chair. With short-term rentals travelers think they’ve never left home.

Seeking Visitor Dollars

Recognizing the economic benefit to the city coming from short-term rentals Visit Denver — the private, nonprofit association that markets metro Denver — touts on its website that the city has approved and is licensing short-term rentals. The site does urge visitors: “If you are visiting Denver and interested in renting a home, or part of a home, for fewer than 30 days, make sure that you rent from homeowner-hosts who are licensed by the City and County of Denver.”

Denver’s rules don’t allow property owners to run more than one Airbnb location other than a basement or carriage house. Nevertheless, AirDNA records indicate that at least 39% of the city’s properties are offered full-time year-round. More: Another 17% run more than one property. Furthermore, multi-listing hosts account for 40% of Denver’s rentals on Airbnb or about 2,000 listings.

Excise & Licenses has only a single compliance officer to handle 2,200 unlicensed rentals plus another 2,000 listings run by mult

Area Anxiety: Residents worry growth of short-term rentals in Denver’s most popular neighborhoods will change their character and transform the quality of life.

i-unit hosts (prohibited altogether under Denver law). The department’s six inspectors help with short-term rental issues but also deal with the city’s 180 other business licenses plus evolving industries such as marijuana. George Mayl, president of Inter-Neighborhood Cooperation (INC), says it best: “They’re undermanned and understaffed.”

Beginning April 1 of this year Airbnb started collecting Denver Lodger’s tax on sales of short-term lodging. The deal resulted in the city receiving $3 million while not forcing short-term rental property owners to send taxes to the city. During the same period Airbnb made $69 million from rentals. Based on AirDNA data, the city should have received more than $7 million.

Property Value Impact

There is a lot of talk among property owners about short-term rentals and their impact on real estate values. One of the most common questions is do short-term rentals increase the value of a particular residential property? Some homeowners feel it can add as much as 40% to the property value due to generating additional income.

Commercial and residential lenders, however, don’t agree. “A short-term rental has zero impact on value and should not be factored in when evaluating a property.”

Why? Regulations, they argue, can and often change overnight. Moreover they point out that permits are very different than a change in zoning which provides much greater certainty for future buyers of a property. Lenders conclusion: “Don’t buy into the hype that the income from a nightly rental will increase the value of the property.”

Quality Quotient: With 82% of Airbnb properties ranked at least 4.5, the online marketplace now publishes a Quality Score of every Denver short-term rental property.

Investor Influence

While lenders don’t see a benefit to short-term rentals professional real estate investors are far more optimistic. The financial benefit of an Airbnb property is clear to some investors: They can make more money from short-term rentals for the same reason vacationers typically spend more on lodging while traveling than they do on rent.

So how many professional real estate investors list properties on Airbnb? And how large are their businesses?

The best way to see whether there is a major trend of professional investors using Airbnb would be to see how many hosts rent out multiple properties on the site. In Denver at least numbers imply that 40% of listings are from multi-listing hosts indicative of probable professional investors. AirDNA, it should be pointed out, helps real estate investors make short-term rental property investment decisions. Thus the presence of professional investors has become controversial. The upshot is that Airbnb has become close-mouthed about disclosing information.

Popular Park Hill Pizzeria Reopens With New Concept And Optimism

Popular Park Hill Pizzeria Reopens With New Concept And Optimism

Pizza Truck: Allegra’s Pizza now operates out of their pizza truck at Odyssey School of Denver at 21st and Monaco and Long Table Brewhouse at 29th and Fairfax. Pickup orders can be placed by calling 303-333-4442 or online at allegraspizza.com.

by Mark Smiley

For the last 10 years, residents of Park Hill and outlying neighborhoods enjoyed ordering pizzas from Allegra’s Pizza which was situated within Oneida Park at 23rd and Oneida in Park Hill. Rick Firmine and Todd Snyder, the current landlords purchased the strip in January 2017 and have been planning new development ever since.

The new development includes a 7,000 square foot outdoor courtyard for kids to play and adults to hang out. Included in this new development will be Little Man Ice Cream and a second location for the popular Virginia Vale restaurant Esters Neighborhood Pub. Paul Sullivan, owner of Esters, indicates that after taking possession this July of the 5,000 square foot property, the former home of a liquor and convenience store, he hopes to open by the end of the year.

When Allegra’s Pizza’s lease was up in April 2018, Firmine and Snyder wanted them to move across the street. Tony Uva, owner of Allegra’s Pizza, wanted to stay in Oneida Park but rather than moving across the street which Uva says was an expensive proposition, Uva suggested taking the vacant store next door to the pizzeria and creating a bistro.

That didn’t fit with the plans so Uva decided to take his show on the road, literally. Allegra’s Pizza closed its doors in Oneida Park on March 30, 2018, and reopened on May 18, 2018, operating out of the pizza truck they have owned the last couple of years. “Essentially what it is, is a kitchen on wheels,” said Uva. They have a permanent location in the parking lot of Odyssey School of Denver at 21st and Monaco where Uva was once a reading volunteer.

“We looked at other locations along Colfax and elsewhere and rent for 1,200 square foot of space was going for $5,000 a month,” said Uva. “We are paying the Denver Public Schools $25 per hour.”

New Plans: Oneida Park, former home of Allegra’s Pizza, is preparing for major renovations including a 7,000 square foot park set to open in 2018.

Tony and his wife Christine remain optimistic that the existing customer base will remain. The truck has the capacity to bake twelve 16” pizzas at any given time, and their two employees (down from 11) will keep the pies baking. Allegra’s Neapolitan Pizza operates the truck on Thursdays at Long Table Brewhouse at 2895 Fairfax Street in Park Hill and Fridays at Odyssey School. They open at 5 p.m. on both nights and at both locations.

Due to the confined area of the kitchen in the truck, Allegra’s will only be able to fill pickup orders. Orders can be placed by calling 303-333-4442 or online at allegraspizza.com.

Services For Civic Leader Chuck Warren Held At Saint John’s Cathedral

Services For Civic Leader Chuck Warren Held At Saint John’s Cathedral

Leading Light: Civic leader Chuck Warren, who led many of Colorado’s leading cultural institutions from the Denver Zoo to the Park People, passed away on July 29, 2018.

by Mark Smiley

Widely respected and beloved by many, civic leader Chuck Warren died at age 92 on Sunday, July 29, at his home in Denver. Memorial services were held at Saint John’s Cathedral on Washington Street where Warren had been a parishioner for most of his adult life. Eulogist Bill Houston remarked that Warren was known for his extraordinary ability to “make and retain” friends as the packed nave at the cathedral for the service demonstrated.

Warren grew up in Fort Collins, and after serving in the Navy during World War II returned to Colorado to earn a degree in Business Administration from the University of Colorado and later a master’s degree in Mass Communication from the University of Denver. He was a stock broker for Merrill, Lynch, Pierce, Fenner & Smith for 20 years and after the death of his father in 1978 he took over as president of Moody Warren Company, a company started by his grandfather who homesteaded farms in Colorado starting in 1966.

Having made his fortune at a relatively early age, Warren retired and spent the rest of his life giving back to Denver and Colorado. He served as the president and/or board member of an extraordinary number of civic organizations including, but not limited to, the Denver Zoo, the Denver Foundation, Children’s Hospital, the Park People and the Colorado Wildlife Heritage Foundation.

He is best remembered as Chairman of the Steering Committee of the Scientific and Cultural Facilities District from 1985 to 1988, and setting up the passage of the multi-county sales tax supporting many key institutions throughout metropolitan Denver.

A talented musician, he played drums with groups from his early teens to the end of his life. An enthusiastic member of the University Club, he was Club president and a prolific songwriter, performer and leader of the University Club Band. He played the drums at the Twelfth Night Show for an extraordinary 64 continuous years.

Veteran: Chuck Warren served in the Navy during World War II.

He was also a highly active member of the Denver Country Club for virtually his entire adult life. He helped longtime friend Bill Wilbur with the publication of the award-winning The History of The Denver Country Club (1888-2006).

His daughter Robin Warren Buckalew noted at the memorial service her father’s almost infatiguable energy and good humor. Hoping to slow him down just a little she bought him a hammock for the backyard which had to be returned as he refused to ever relax in it.

Chuck Bonniwell, publisher of the Glendale Cherry Creek Chronicle, who wrote the history of the Denver Country Club stated, “Chuck Warren was an extraordinary human being who made everything he did and participated in literally fun. One would go through the most exhausting and contentious negotiations over the printing and publication of the book with third parties and at the end he would laugh and say, ‘Boy, wasn’t that one great donnybrook! Hey, who do we have to take on next?’” Bonniwell went on to note, “Everyone who ever knew Chuck will greatly miss him. The world he inhabited is a little less joyful with his passing. I wish we could have cloned Chuck and his wonderful spirit.”

Chase Croquet Glory At 10th Wicket & Stick It Games Aug. 3

Chase Croquet Glory At 10th Wicket & Stick It Games Aug. 3

Cherry Creek’s Inclusive, Socializing Anniversary Tournament Offers Unadulterated Joy To Play Or Watch

by Glen Richardson

Lure Of The Mallet: Players can’t resist joining in the croquet battles. Friends and liquidcourage make smacking the balls around all the more fun.

Mallets rise, mallets fall. Moreover, it’s fun, offbeat and downright zany! The weird, wonderful and absolutely entertaining-exciting annual summer Wicket & Stick It games are returning to Cherry Creek North this month.

If you live in the Cherry Creek Valley and enjoy playing or watching competitive croquet, chances are you’ve marked your calendar for the annual Cherry Creek competition, Colorado’s largest croquet tournament. Widely considered one of the top croquet tournaments in the Rocky Mountain West, it’s being played for the 10th year Aug. 3, 2:30-7 p.m.

The Outdoor Plaza behind The Container Store at the Cherry Creek Shopping Center is again where the games will be played. The inclusive and unique fundraiser for the Cherry Creek Chamber of Commerce gives attendees the chance to win amazing prizes while enjoying fabulous food and refreshing beverages. Players and spectators receive drink tickets to enjoy a variety of premium beverages including Stella Artois and wine as well as tantalizing morsels from Cherry Creek area restaurants including the California Pizza Kitchen, Sol Mexican Cocina, Brightmarten and others. Moreover, a variety of ticket packages are available.

Round Robin Format

Silver Cup Winners: Celebrating winning last year’s tournament are Karrie Fletcher and Charlie Kercheval with Alpine Bank.

A new Round Robin format for the 10th Anniversary edition guarantees players three games. A total of 64 teams, each with two people, will vie for the Wicket & Stick It Silver Cup. Prizes are also awarded to the 1st, 2nd, and 3rd place croquet teams. In addition there are a variety of individual player honors including Best Wicket Shot. Start times for players are 3 p.m. or 4:15 p.m.

Sports fans that only want to watch the action have a choice of being either a general admission spectator or live it up as VIP spectator. General admission spectators receive unlimited food and one drink ticket. Or for an extremely enjoyable day where you can participate in Wicket & Stick It’s exciting social life, choose to be a VIP spectator. As a VIP you receive unlimited food and drinks plus a goody bag. Moreover you also get exclusive seating.

General Admission players also receive unlimited food; two drink tickets and the opportunity to play in three guaranteed games. Players choosing the VIP option receive unlimited drinks with personal beverage service plus unlimited food and a goody bag. In addition they receive exclusive seating.

Instructions Offered

VIP Mallet Mavens: For a fun, enjoyable day at the Wicket & Stick It games join in the exciting social life by becoming a VIP spectator or player.

Not sure that you have the skill to become a croquet legend? Not to worry, the Cherry Creek Chamber will have croquet referees on hand to provide instruction for the game’s newbies.

To get ready for the infamous Wicket & Stick It competition, many who take croquet seriously and are planning to play, seized the opportunity to take free lessons along with Chamber members. The Cherry Creek Chamber provided lessons and treats on Monday nights last month (July) at the Denver Croquet Club in Wash Park to prepare for the big tournament.

Each of the game’s 64 teams will have two players. Don’t have a team, but still want to chase croquet glory? Don’t worry, the Wicket & Stick It staff will find you a partner. Collaboration, capitulation and conflict are all dynamics of playing croquet with another person, and sound communication can lay the path to victory and the treasured Silver Cup.

Fun Set And Match

For many the game of croquet may conjure up visions of a well-mannered and civilized sport — stoic players in prim and proper dress. Not these days and certainly not at the Wicket & Stick It games. Instead it’s a fun, festive, offbeat, social event that’s just a lot of enjoyment.

Remember Lewis Carroll featured a surreal version of the game in Alice in Wonderland. A hedgehog was used as the ball and a flamingo as the mallet, while soldiers doubled over to make the hoops.

Whether you’re a spectator or a player that doesn’t rack up wicket points (the scoring moniker) you can still be a winner. Thus whether you join a team or attend as a spectator plan to dress for the occasion. Reason: Awards are also being given out for the Best Dressed attendee and the one with the Best Hat.

Unique, Historic Game

Racking Up Wicket Points: The joy of making a crazy, complicated shot is thrilling and joyous.3

The sport can best be described as a combination of golf (putting skills), chess (strategy) and billiards (angle play). While croquet requires a great amount of skill, few games provide more unadulterated joy to play or watch. Moreover, croquet was the first outdoor sport to embrace equality, allowing both sexes to play the game on an equal footing.

Croquet is believed to have started in Ireland in the 1830s. The game was introduced to England from Ireland in 1852. In the late 1970s, croquet began to be played as a competitive sport in the U.S. and Canada.

The front lawn of Donald Trump’s “winter white house” accommodates several reduced-size courses. Members of the National Croquet Center once played there as “limited reciprocal members.”

In 1985, croquet came to Denver with the vision of Sparky O’Dea who formed the Park Hill Croquet Club. Playing first in Denver’s City Park the club later moved to the big flower garden in Washington Park. They soon discovered the fenced Lawn Bowling Green and today share the space with the Lawn Bowling Club. Information: 303-388-6022.

No Rest For The Wicket: Using a mallet to hit a ball through a hoop may not sound exciting, but once players pick up a mallet it’s hard to put down.

Croquet Attire: Prizes for Best Dressed and Best Hat help but it’s your craziest friends that bring out the laughter and smiles and make the games enjoyable.

Can Denver Learn A Lot From Bee Colonies?

Can Denver Learn A Lot From Bee Colonies?

by Ruthy Wexler

Beekeeper: Katherine Cornwell at home with her two hives of bees. Now a planning consultant, she worked for years as city planner for Seattle; Madison, Wisconsin; and — for eight years — the city of Denver. Madison, she says, “is the most like a bee colony. Itsdemocratic process was sometimes irritating as hell … If they did not want to do something, that city could not be moved. But when an idea was good, action was swift.”

While Denver continues to expand, the local bee population goes about its own complicated business — and a growing number of beekeepers are available to help when the two paths cross. On a recent sunny Friday, a large swarm threatened the pleasure of outdoor diners at Proto’s Pizza and so the construction crew across 15th Street called Katherine Cornwell, who is registered with the Swarm Hotline — and, it turns out, knows quite a bit about Denver’s expansion.

The small crowd attracted by Cornwell’s actions — gently scooping bees from the tree they’d settled on into an ordinary packing box atop her car — wondered how on earth she’d get the entire swarm into that box.

“See those bees near the hole of the box?” Cornwell explained. “See how they’re putting their butts in the air and fanning their wings? They’re letting the other bees know that the queen is inside.”

Fascinating And Wonderful

Katherine Cornwell didn’t know how much she would have in common with bees when she began studying them 10 years ago. All she knew was, she’d fallen in love.

Captured: Katherine Cornwell outside Proto’s Pizza on 15th Street, where she captured the swarm and explained to onlookers how she did it. The key was making sure the queen got inside the box, so other bees would follow.

“I was watching TV, which I rarely do,” she recalls. “This Haagen-Dazs commercial comes on — bees flying over a field toward a big succulent flower … then the screen goes blank. Words appear, ‘The honeybees are dying’ — and I start sobbing.

“I cannot explain to this day why it moved me so much. I was determined to learn more. I studied with Corwin Bell in Eldorado Springs — which ranks as one of the most lovely experiences of my life. I learned how fascinating and wonderful bees are. And I realized that bee colonies embodied principles I’d been thinking about in my own field, city planning.”

Bees And People

Expert: Corwin Bell, whom Cornwell studied under, teaches Bee Guardianship courses that show how bees, humankind and the natural world are connected and promote alternatives to conventional beekeeping. A computer animator and filmmaker, Bell has filmed hours of footage of honeybees. He travels the world to witness beekeeping under every condition imaginable.

As city planner for Denver from 2000-2008, Cornwell was inspired by her boss, the late Jennifer Moulton. “All around the city, wonderful things were happening. Civic Center, Stapleton, Central Platte Valley, Lower Downtown Denver …. Jennifer had such vision about the future, while preserving the past …”

Cornwell, who was co-author and project manager for Denver’s University Park Plan; East and West Colfax; the Main Street Zone District, and co-author of Blueprint Denver, now feels frustrated that current projects — like the widening of I-70 — do not take urban and environmental principles into account.

“As a city planner, I can tell you this project is counter intuitive. Widening roads in the urban core makes congestion worse …

“Development is now crafted behind closed doors,” Cornwell observes. “The so-called experts are just lobbyists, lawyers and spineless bureaucrats.

“And here’s where this relates to beekeeping. Bees and people are both very complex. Both need communication, both need communities … But developers don’t trust citizens. Politicians don’t ask what citizens want. So wealthy individuals with high stakes interests are superimposing their vision on the people.

“It’s not just those in charge. Citizens are not participating. But all bees participate in their community.”

Participatory Democracy!

“Bees have different roles, which they perform meticulously,” Cornwell explains. “The sentinel bee protects the hive, the nurse bee raises the baby bees, the scout goes out to find new food and new hives …

“When a scout finds a new potential hive, she doesn’t order everyone to go there. She comes back and communicates through a waggle motion danced in a figure eight pattern. Where she stops on the figure eight and how long she waggles indicates direction and distance of the new find. The number of times she repeats the dance correlates to the find’s degree of awesomeness, persuading other bees to check it out …

“If they agree, they’ll waggle dance about it too, until the whole colony decides as a group to go there.

“If that’s not participatory democracy, I don’t know what is!

“Denver,” she says, “is not behaving like a bee colony.”

Back To The Box

After a good hour — and a minor catastrophe, where the box’s lid blew off and Cornwell had to start all over! — the hive of bees all seemed to be collected and she entertained a few more questions.

“How did that swarm end up here?”

“Sometimes hives are disturbed by construction,” Cornwell said. “Which might have happened here. But usually they swarm because a new queen was born. The hive splits and the old queen leaves with half the colony to find a new home.”

“How do you get the queen inside the box?”

Cornwell smiled. “Providence, good luck, or chance. Usually it’s pretty easy. If the bees are just hanging from a small branch, I’ll clip it so the whole thing falls into the box.

“Today, the bees were clumped on a tree trunk. So I gently scooped them a bit at a time until I saw them acting like I had the queen, you know, fanning their butts in the air.”

Mission accomplished, Cornwell put the box inside her trunk and began the drive to an organic farm in Boulder where the bees will take up residence in a hive box with million-dollar views of the Flatirons.

For more information on swarm removal or beekeeping visit coloradobeekeepers.org or call 1-844-779-2337.

Holly Street Condominiums Denied Rezoning Application

Holly Street Condominiums Denied Rezoning Application

City Forces Residents Into Mediation With Developer

by Mark Smiley

In the April 2018 edition, the Chronicle reported on a proposed condominium development called Green Flats that would be located on Holly Street, between Cedar and Alameda, south of the strip of businesses that includes Novo Coffee and Park Burger. The proposed project would have 27 condominium units, 40 uncovered parking spaces in back, a 20-foot setback from Holly street, and stand 35 feet high, seven feet higher than the Park Burger business complex.

On April 4, 2018, the overwhelming pro developer Denver Planning Board (an 11-person board appointed by Mayor Michael Hancock) entertained the application for this three-story condominium project. Residents from the neighborhood filed into the Planning Board meeting to speak in opposition.

All told, 17 people went on the record, some for, but mostly against the project. In a stunning turn of events, the Planning Board voted to deny the application finding that the “applicable review criteria have not been met.” The vote cast had six in favor, one opposed, and one abstention.

Residents who opposed this project had little time to celebrate . . . Most cities in Colorado prevent a similar proposal from being considered for at least a year, but not Denver. Instead the city forces the successful residents into immediate mediation with the developer with the city choosing a mediator who some claim leans toward being pro developer.

“The city is really pushing to have this developed,” said Denver realtor Denice Reich. “They are trading affordable housing for the myth replacement of affordable housing.”

Since the April 4 Planning Board meeting, the developer Jason Lewiston, president of Greenius LLC and the applicant representing the homeowners seeking the sale of their property Anna Dewitt, have submitted a revised application.

They are asking that all three parcels receive the same Urban Edge multi-unit 2.5 story designation that the current condos have only “with waivers.” The new application doesn’t include new plans, but now says there will be 25 units instead of 27. It is suspected by some opponents that the Planning Board’s staff recommended the amended application indicating it might be something the City Council finds acceptable. Critics charge that there is virtually no development the city doesn’t find acceptable.

The “mediation” was held on May 7, 2018, at Augustana Lutheran Church. According to some of the 24 attendees the mediator’s only task appeared to be to get a development that Lewiston would approve. The mediator made a list of questions and three residents were chosen to sit down with the developer and the applicants at a later date.

If you wish to follow what’s happening in this rapidly developing story, visit www. glendalecherrycreek.com or follow the Chronicle on Twitter, Facebook at @GCCChronicle.

 

Plan Denied: The initial proposed site development for a 27-unit condominium project on Holly Street was denied by the Denver Planning Board on April 4. On May 7, the city forced a pro developer on residents opposing the project.

 

Leading The Opposition: Denver Realtor Denice Reich has been opposed to the development on Holly Street stating that “they are trading affordable housing for the myth replacement of affordable housing.”