As City Council prepares to vote on the Group Living Proposal in October, several neighborhood organizations and residents are sounding off against the plan, saying it doesn’t address the right issues and would negatively impact neighborhood characteristics.
Their calls are growing so loud that it’s causing some councilmembers’ support for the proposal to waiver.
Group Living Proposal
The Group Living Proposal was developed by CPD to address rising housing costs and the threat of displacement for Denver’s low-income residents. The plan seeks to overhaul several parts of Denver’s zoning code. Most notably, the number of unrelated people that can live together in a single-family dwelling would increase to eight from its current limit of four. It would also consolidate group living use restrictions into two categories — Residential Care and Congregate Living — and allow developers to build them in single-family neighborhoods.
Residential Care include homeless shelters, community corrections facilities, and sober living homes. Dormitories and tiny home villages are examples of Congregate Living facilities.
Following the bill’s hearing before the Land Use, Transportation, and Infrastructure Committee (LUIT) on September 1, Councilwomen Amanda Sawyer (District 5) and Kendra Black (District 4) penned an op-ed in The Denver Post calling for the plan to undergo a more strenuous review before it’s approved.
Op-Ed: Denver Councilwomen Amanda Sawyer, above, (District 5) and Kendra Black, below, (District 4) penned an op-ed in The Denver Post on September 1, 2020, calling for the group living plan to undergo a more strenuous review before it’s approved. Denver Councilmembers Kevin Flynn (District 2), Jolon Clark (District 7), and Paul Kashmann (District 3) co-signed the op-ed.
“We don’t dispute the need for change. However, rubber-stamping this proposal is not the best way to update the code to modern reality,” they wrote. “With CPD now kicking off a two-year project aimed at eliminating single family zoning, and neighborhood plan updates underway across the city, we have to look at group living in a broader context.”
Councilmembers Kevin Flynn (District 2), Jolon Clark (District 7), and Paul Kashmann (District 3) co-signed the op-ed.
In the op-ed, the councilmembers objected to the fact that the plan does not address the most problematic part of the city’s zoning code, Chapter 59. It was adopted in 1956 and has functioned as Denver’s second zoning code since 2010 when the city adopted its new code. Properties covered by Chapter 59 make up approximately 20 percent of Denver’s total zone districts, according to city estimates.
City auditor Timothy O’Brien issued a report in 2015 saying the coexistence of both zoning codes negatively impacts the “equal treatment of all citizens and long-term success of the city’s goals.” CPD agreed with O’Brien’s recommendation to undertake a cost-benefit analysis of switching to a single zoning code, but it was never implemented.
Neighborhood organizations and residents have been echoing these concerns since March, according to Jerry Doerskin, a Southmoor Park resident. Doerskin says the plan lacks practicality and should affect the entire city if it’s truly worth its salt.
“It’s grossly unfair to impose these kinds of zoning changes on four-fifths of Denver and leave the rest untouched,” he told the Glendale Cherry Creek Chronicle.
Doerskin says the practical application of the plan will ruin the characteristics of his neighborhood by severely taxing the city’s aging infrastructure.
In January, Colorado’s mayors united to call for more infrastructure funding after the American Society of Civil Engineers (ASCE) gave the state a C- on its 2020 infrastructure report card. ASCE found the state’s roads, drinking water supply, and energy grid face significant challenge because the state hasn’t adequately maintained its infrastructure, amounting to a $14 billion funding gap.
Over the past two years, state lawmakers have given $2.7 billion to cities and counties to help pave their roads. However, this creates a paradox for the state’s budget, as it is now being asked to support local road projects when it’s proven to be ineffective at adequately funding state projects.
Exemplar 2: Developers in Colorado and throughout the country are enthusiastically backing zoning for group living which will lower the cost of living units and greatly increase urban density.
Infrastucture was a driving force behind Doerskin and other members of a group he co-founded to oppose the Group Living Proposal called Safe and Sound Denver, submitting a petition with over 2000 signatures of Denver residents who oppose the proposal prior to the September 1 LUIT meeting.
“There is very little to support in this bill,” he said. “I know addressing homelessness and high living costs in Denver are valid concerns, but to totally increase density like this is unreasonable. I could support a moderate increase of unrelated people living together. But, if that’s not acceptable to Council, they should vote it down and take up the issues one at a time.”
High Hurdles
Even if Denver didn’t have an infrastructure issue, existing state laws present hurdles to development that lawmakers haven’t figured out how to cross.
Colorado outlawed inclusionary zoning practices in 1981, thus preventing cities and counties from implementing rent control policies and requiring developers to set aside a certain amount of units for low-income residents. In 2000, the Colorado Supreme Court reinforced the law in Telluride v. Thirty-Four Venture when it added home rule municipalities to its jurisdiction.
Denver-area Democrats have tried to pass legislation overturning the Telluride decision in 2020, but it never made it out of committee.
On top of these restrictions, Denver has a hard time incentivizing developers to build affordable units because the of the city’s construction permit fees. Developers may be asked to pay permit fees which are determined based on the value of their project and an extra fee to expedite the city’s review of their permit application. After that, developers have to pay an affordable housing fee of up to $1.65 per square foot.
Once the coronavirus pandemic hit and material prices began to skyrocket, the city faced even higher hurdles. The price of lumber has climbed $300 per thousand board-feet since mid-March and steel has increased 10 percent to almost 3700 Yuan.
A Private Enterprise
While Group Living Proposal supporters claim they are looking toward Denver’s future, some residents worry the city will be dragging along historical problems.
In 2017, CPD coordinated with the mayor’s office to create the Group Living Advisory Committee (GLAC), a 48-member congregation of community members, neighborhood organizations, private and public interests tasked to identify outdated areas of the city’s zoning code.
Members represent various industries ranging from corrections to homeless services and developers. Both At-large councilwomen, Robin Kneich and Deborah Ortega, represent City Council.
Neighborhood organizations make up just eight representatives on GLAC, leading some residents like Paige Burkeholder, to suspect that the project is meant to serve private interests and help term-limited politicians like Mayor Michael Hancock line up future campaign donations.
“Overall, this is such a massive overhaul to the zoning code with very little input and dialog from residents of neighborhoods,” Burkeholder told the Chronicle.
Two GLAC members Burkeholder focuses on are Geo Group and Core Civic, both of whom are private corrections companies. Between 2012 and 2017, both companies spent approximately $718,000 to lobby state lawmakers in Colorado, according to Follow The Money, a campaign finance research database.
Core Civic runs its state-level lobbying operations through Greenberg Taurig, a firm several councilmembers know well. Since 2003, Greenberg Taurig has donated at least $23,000 between Hancock and Ortega’s campaigns, according to each candidate’s financial disclosure forms. An overwhelming majority of the donations went to Mayor Hancock.
What About The Future?
Colorado has been experimenting with similar rules since July when Governor Polis suspended limitations on the number of people who can live together to help unhoused and displaced people into the state’s shelter system. Similarly, LUTI passed a temporary moratorium on group living developments in Chapter 59 communities and CPD issued a memo in September staff saying the agency considers enforcement of group living rules its lowest priority in September.
But, while these changes are neither permanent nor readily noticeable for many residents, some say the focus should continue to be on the future of the proposal and nailing down how it will impact homeowners across Denver.
“The only way to make this proposal work is to go back to the beginning and start over,” Burkeholder said. “We need to make sure every voice is heard, not just the one’s the city wants to hear.”
Exemplar: Drawing of Group Living in the Five Points area of New York circa 1840.
Average Rent In Q2 Declines To Just $1,506 Per Month; Nearly Every Age, Size Of Apartments Saw Drop In Rent Prices
by Glen Richardson
For the first time in more than a decade average rents in Denver fell in the second quarter of 2020. The last time average rents dropped year over year was in the first quarter of 2010, according to the Apartment Association of Metro Denver.
Blockbuster Buildup: The Bromwell, an apartment complex along the Speer Blvd. corridor, is among the apartments that are just opening. It adds another 171 homes onto city’s constant apartment buildup.
The coronavirus economy combined with new apartments coming on the market burst Denver’s decade-long rent bubble. New construction added 1,170 units in the second quarter, including 936 in the metro area alone. Released July 21, the rent data was conducted for the Apartment Association by DU’s Daniel School of Business and Colorado Economic Management Associates.
Compared to Second Quarter 2019, average rents dropped to $1,506 per month, a $30 monthly decrease or a $360 annual decline. Taking an optimistic point of view, Mark Williams, Executive Vice President of the Apartment Association, says that is good news for future renters. “Not only are rents not climbing, they went down for all but one floorplan type. There were decreases in all categories, except for two-bedroom, one-bathroom units. This is likely because a renter who had an extra bedroom has added a friend to his or her lease.”
Metro Wide Drop
The decrease in rent was consistent across most geographic areas or 24 of 36 submarkets. Nearly every age and size of apartments saw declines in rental prices.
Enormous Pull: With 14-stories and 142 homes, The Pullman Apartments on Wewatta St. in the Union Station neighborhood is among new apartments that have opened in Denver. New construction added 1,170 units in the Second Quarter helping to burst city’s decade-long rent bubble.
Newer properties saw the steepest drop in rental rates. Apartment complexes built in 2010 or later have average rents of $1,840, a $105 drop from the previous quarter.
Properties built in the 1970s remain the least
expensive to rent, averaging 20% less than the average rental cost for all apartments.
Virus Specific Data
The Second Quarter survey was modified to collect COVID-19 specific data, asking about delinquent patterns for the months of April, May, and June 2020. The results demonstrate that delinquency was very low, with a majority of rental providers responding that 95% of renters paid their rent.
“The Q2 report continues to show relative stability in the apartment market,” Williams notes. Adding, “which was difficult to predict at the start of the COVID-19 pandemic.”
Over the past several months, housing providers have worked closely and diligently with residents who were impacted by pandemic hardships to create flexible payment plans and create solutions that were a win-win for everyone involved.
Vacancies Flat
The Denver metro apartment market added 1,170 new units, a net positive absorption of 3,801 units for the second quarter. In the Second Quarter, discounts and concessions were steady, coming in at $84, compared to $88 in the first quarter.
Gold Standard: While apartment construction slowed in the second quarter, building continues unabated in nearly every neighborhood. This 17-story tower will house 373 apartments in the Golden Triangle neighborhood.
“That means that 3,801 more apartments were rented than in March 2020, when the COVID-19 situation started to evolve, indicating that demand for rental housing is still very strong,” Williams points out.
The survey found the average overall vacancy was 5.1%, which is down from 5.9% in the previous quarter, but virtually flat compared to a year ago. This is in line with historical patterns, which show slightly higher vacancies in the first quarter compared to the second and third quarters.
More Units Opening
New blockbuster apartments are expected to open in the weeks and months ahead and will likely continue to impact rental rates. In LoDo, Market Station, a new full block development will add 225 apartment homes. Another big complex, this one a 17-story tower with 373 homes will open before yearend at 10th and Acoma in the Golden Triangle neighborhood.
Pint-Size Property: This five-story micro-apartment complex nearing completion on Adams St. in Cherry Creek could be one answer to the coronavirus economy. The 37-unit complex has apartments ranging from 300-800-sq.-ft. in size.
Two new developments are also nearing completion along the Speer Blvd. corridor and expected to open this year adding 413 apartment homes. The Modera West Wash Park with its two sharp points will add 242 apartments averaging 864-sq.-ft. in size. Then at Speer and Logan, The Bromwell will add another 171 homes with leasing beginning to get underway.
In Cherry Creek North a five-story micro-apartment complex is nearing completion at 135 Adams St. Depending on price, the 37-unit complex ranging from 300-800-sq.-ft. in size could become a popular coronavirus economy size-style. Despite the new apartments opening and additional projects being proposed, construction of new apartments did slow in the second quarter. Year over year construction during the period totaled just 8,978 units, the lowest number since the second quarter of 2016.
Rental Assistance Rises
Denver is using Federal COVID-19 relief funds to more than triple rent and utility assistance, trying to keep people housed now that Denver’s eviction moratorium has ended. The City Council has approved adding $5 million to the housing assistance fund that started the year with a budget of $2 million.
The coronavirus economy has sparked a sharp increase in the demand for rental assistance. Britta Fisher, who heads Denver’s housing department, says the assistance program helped 996 households last year and had already assisted 704 through May of this year. “This clearly shows that households, including families, are feeling the stress of this economic and health crisis,” she says.
In the past grants have paid up to 80% of rental assistance. City Council, however, has approved eliminating the requirement that recipients pay a portion of the housing cost and now 100% of rent will be covered. Denver’s housing department says this should allow the program to more quickly get funds to residents who need rental and utility assistance.
Rent Relief Donations
Moving Experience: Coronavirus economy and health crisis is forcing many apartment renters to move. Many are relocating to less expensive apartments or downsizing to smaller units to cut cost. (Photo by Kevin J. Beaty/Denverite)
With requests for rental assistance up sharply and showing no sign of subsiding, it is becoming increasingly clear that city-federal assistance programs won’t be adequate. In May an apartment landlord group raised $74,000 from its members to establish a rent relief fund. The funds will be doled out to people to have lost income or suffered illness due to the coronavirus pandemic.
The Colorado Apartment Association which contributed $25,000 to the landlord fund is also asking other Valley residents and businesses to contribute. Funds would go to a Resident Relief Foundation to help “Coloradans help Coloradans.”
The foundation initiative is hoping to raise $10 million for rental assistance. The foundation notes that demand is so high during the current health-economic crisis it is only taking applications from tenants facing imminent eviction. The Denver Apartment Association is an affiliate of the Colorado Apartment Association.
“We dance round in a ring and suppose, but the secret sits in the middle and knows.” — Robert Frost, The Secret Sits
by Luke Schmaltz
It is practically unheard of that a retail business — one which relies heavily on public awareness of its whereabouts — would treat the opening of a new location like a covert, psi-ops, top-secret government installation. Yet, until recently, this seems to have been the case with the small-format Target store slated to open at Lowry Boulevard One in fall of 2020.
A Public Mystery
Bullseye: Residents who thought they were living in a district exceptional to generic corporate influence will have to get used to looking at this symbol every day.
The entire arc of this narrative is, in fact, shrouded in secrecy — as the issue first came to the attention of The publication from a Lowry Boulevard One resident. The Chronicle was contacted by this person who, first and foremost, insisted upon anonymity. Once agreed upon, they went on to explain a community-wide sentiment of disdain over recently-announced plans that a Target store was to be the anchor business for the retail shopping complex at First Avenue and Quebec Street.
According to this caller, the developer, in securing neighborhood support for the project, sent out numerous emails to homeowners and other residents. These emails asked recipients their opinions on the type of retail business that would fulfill their needs while resonating with the unique, upscale tone of the neighborhood. Preferences were unanimous for a specialty grocery store along the lines of Tony’s Market, Trader Joe’s or Whole Foods.
Come to find out, through Boulevard One Design Review Committee Meetings and statements on the Lowry Redevelopment Authority website, that the space is slated to host a small-scale Target store — not exactly the brand that comes to mind for rounding out a one-of-a-kind, distinctive, freshly-reimagined residential district. The space in question currently is a vacant, partially developed 30,000 square-foot storefront facility — no doubt a consistent subject of curiosity and concern for area residents.
Confidential Solidarity
Requests for commentary on this issue were either deflected to other entities or ignored entirely by the Lowry Redevelopment Authority, Denver District 5 City Council Office, Lowry United Neighborhoods (LUN), Lowry Community Master Association (LCMA), Boulevard One Master Association (BOMA) and to some degree — Target Corporate Headquarters.
Construction: The construction at Boulevard One is underway, yet far from complete.
Mary Carr, Executive Director of LCMA responded in an email explaining: “Boulevard One is actually its own Master Association and is not a part of the Lowry Community Master Association (LCMA) and for that reason the LCMA is not involved in any of their development decisions. I have cc’d Jean Lindholm with the Lowry Redevelopment Authority — she can get you over to the appropriate person with the Boulevard One Master Association.” No follow-up communication from Lindholm was ever received.
Meanwhile, multiple attempts to communicate with District 5 City Council Members, LUN and BOMA were ignored entirely and only after numerous emails and voicemails, Jill Lewis, a Target Corporate Headquarters Communication agent, finally offered a definitive statement via email on the matter: “At Target, we continuously explore possible locations for new stores, including in the Denver area. We are currently focused on new store growth with our small-format stores, which are smaller than our general merchandise Target stores and are located in dense urban and suburban neighborhoods as well as college campuses. I can tell you we are pursuing the opportunity to reach guests in the Lowry neighborhood, and at this time, we don’t have any additional information to share.”
Bankrupt Beginnings
Rewind to January 2020 when Lucky’s Market — the original planned occupant of the retail space — filed for Chapter 11 bankruptcy in a motion to close 32 of its 39 locations. This effectively took them out of the running for the property. According to the Lowry Redevelopment Authority (LRA) meeting notes for May 2020, “The LRA has repurchased the property as of May 14, 2020, and notice of repurchase has been given to CK under a Right of First Offer (ROFO) agreement. CK intends to give notice of their desire to purchase the property from the LRA within the next few days with the selection of a closing date.”
Signage: As of August 12, 2020, the Boulevard One construction site signage still identified Lucky’s Market as the anchor retail business of the development.
Throughout the remainder of the meetings notes, the future owner of the property is referred to simply as “CK.” Further investigation into Boulevard One community plan and lot plan schematics, “CK” is revealed as Confluent Development/Kelmore Development Co. The former’s website describes the configuration as: “Confluent Development and Kelmore Development serve as co-owners and co-developers for The Boulevard at Lowry, a 200,000-square-foot commercial mixed-use redevelopment project in the heart of Denver’s revitalized Lowry neighborhood. Situated on more than five acres, the 1.5-block infill development will consist of retail, restaurant, office and entertainment space, including a restaurant sitting on the community park across Lowry Blvd.” Not surprisingly, no qualified representative from “CK” was available to comment on the situation for this article.
Meet The New Neighbors
What Could Have Been: A conceptual artist’s rendering of what the Boulevard One retail complex was supposed to look like.
According to LRA meeting notes from July, 16, 2020, the plan to lease the property to Target was announced on July 7 via virtual open house meeting. The plan has since been added to the LRA website and the Boulevard One website with the following statement: “The store would offer a shopping experience tailored to the needs of local guests, including free and convenient same-day services such as Order Pick Up and Drive Up. Target stated they would look forward to building a local team of talented members who will help them serve the Denver community. The developer also shared that they continue to engage and are also in advanced negotiations with multiple specialty grocers to join the project, either on the current parcel or an adjacent parcel.”
The 30,000 square-foot building which will house the small-format Target is just one-fourth the size of a normal store, which makes one wonder which of the many attracting features may be left out due to size restrictions. Lifelong loyalists to the corporate brand may see the opening of another branch of their favorite retail destination. Yet, upon entering, they may be taken aback when they realize there may be no pregnancy-detecting buying algorithms analyzing their purchases for coupon targeting, no open breastfeeding areas in either the electronics or housewares departments and no refrigerated Doritos for their famous “Walking Tacos” recipe. The latter is a brand-specific marketing original — which instructs shoppers to crush up a bag of Doritos, add taco ingredients and enjoy the concoction with a spoon. If this practice were to become commonplace at Boulevard One, residents and stakeholders alike would have another situation to be secretive about.
Denver’s Odd Couple Alienates Glendale Residents, Businesses At Meeting Tay Anderson And Emily Sirota Called An ‘Embarrassment’
by Mark Smiley
After a week of consternation, the Glendale City Council elected at its meeting on July 21, 2020, to support Governor Jared Polis and his statewide mask mandate and to opt out of the controversial, and seemingly highly unpopular, mask mandate of the Tri-County Health Department (TCHD).
Bully: Known as the young political bully of Denver, Tay Anderson who sits on the Denver Public Schools board, snickered and mocked at citizens who did not support his position on Tri-County Health Department’s mask order.
It was expected to be a relatively mundane meeting of the Glendale City Council on Tuesday, July 14, 2020, called to discuss whether Glendale should adopt a mask ordinance closer to Denver’s or instead stay within TCHD’s mask order which applies to the counties of Adams, Arapahoe and Douglas.
TCHD’s board voted to implement the mandate on Wednesday, July 8, 2020, by a close 5 to 4 vote. The order also allowed each county and its individual municipalities the option to opt out by July 24, 2020. At the time of publication, Douglas County, Castle Rock, Bennett, Parker, and Brighton had already chosen to opt out. Douglas County indicated that it was giving notice that it was dropping out of TCHD altogether.
The July 14th Council Meeting
But what was supposed to be a relatively noncontroversial, technical meeting on what was the better choice for Glendale, turned into a wild donnybrook when two Denver elected officials, Tay Anderson (member of the Denver School Board) and Emily Sirota (a recently appointed State House Representative), decided to make the meeting a cause celeb. They notified local television stations that they, and their supporters, planned to go to the meeting and disrupt it. Two of the local television stations live streamed the entire two and one-half hour meeting.
Embarrassment: Emily Sirota joined Tay Anderson and a few others to encourage Glendale’s City Council not to adopt an ordinance similar to Denver’s order to opt out of TCHD’s mask order.
The City Council, at the end of meeting, continued it until the following Tuesday to give the city staff a chance to prepare a resolution in line with Denver’s for the City Council to consider.
The Odd Couple In Action
Standing at the back of the room leaning against the wall, Anderson and Sirota appeared to giggle, laugh and mock any Glendale residents who did not speak in favor of their position. Anderson shouted from the back of the room for the Council to shut down when an opponent went over three minutes, not withstanding the fact the Council did not limit anyone to three minutes.
Mayor Dunafon felt compelled to repeatedly admonish Anderson and Sirota to stop harassing and laughing at people who came to the podium who did not agree with them. Anderson appeared to be the worse of the pair. The 21-year-old demands people address him as “Director” or “Director Anderson,” claiming the title as a result of being on the Board of Directors for the Denver Public Schools.
When he spoke, he threatened to recall members of the City Council unless they voted for the TCHD order, but did not explain why if the Denver order was appropriate for Denver, which surrounds Glendale and is the city he lives in, why it wasn’t appropriate for Glendale. In a moment of apparent hubris, he declared that: “I am not the mayor of Denver — Yet!”
Known as the young bully of Denver politics he had also threatened recall for Greenwood Village Council members if they did not vote to rescind Resolution 40-20 on police immunity. He successfully threatened the Stapleton neighborhood to change its name, even though it had undergone a vigorous election just recently and had voted to keep the Stapleton name. Anderson had said he and his cohorts would march and take over the streets of Stapleton unless they acceded to his demands, which they did.
Threatens: Tay Anderson argues before the Glendale City Council at the July 14, 2020, special meeting. He closed his statements by threatening a recall against those that voted to opt out of TCHD’s mask order.
Emily Sirota, State Representative for House District 9, was very concerned at the prospect of Glendale not adopting TCHD’s order rather than one closer to Denver’s. She declared: “Both residents of Glendale and those who live in surrounding parts of Denver who often frequent businesses and restaurants in Glendale are very concerned and if you opt out of this order, they won’t feel comfortable shopping here.”
Other Public Testimony At Council Meeting
Veteran: Chris Shiroma, a veteran, pleaded with Glendale City Council to opt out of the TCHD mask order citing the difficulty people in his situation have in finding a job.
In an effort to convince the City Council to remain under TCHD’s mask mandate, Anderson and Sirota organized a group to email members of the City Council throughout the day and appear before the council during the public comments portion of the meeting. To their surprise, there were more people signed up to speak on behalf of opting out of mandatory mask requirements altogether at the meeting, although the City Council did not appear to consider that an acceptable option. In total, 23 people signed up to address the Council.
Restaurateur: David Peterson, owner of the Bull & Bush Brewery, spoke in favor of opting out of the TCHD mask order. He indicated it would be difficult to police as a business owner.
“Who is responsible for policing this?” asked David Peterson, owner of the Bull and Bush Brewery in Glendale. “We have enough going on as it is. I don’t need to be the police and enforcer of this mandate.” Peterson referenced the clause in the mandate that requires members to be in the same household to dine together. Peterson already requires masks to enter his restaurant.
Nurse: Lance Anthony, longtime Glendale resident, called the mask order “insane” and asked the City Council to opt out.
Lance Anthony, a longtime resident of Glendale, simply said, “Opt out, this is insane. If you can smell cigarette smoke through your mask, it is not working.” Anthony who has been a paramedic and a nurse pointed directly at Anderson and Sirota and demanded they stop interrupting the meeting and harassing everyday citizens.
“I think people can make their own decisions and a requirement to wear a mask should not be mandated,” said Ricky King, former Glendale City Councilmember and Glendale employee for 22 years.
Citizen Comment: Morgan Watters spoke at both the special meeting held on July 14 and the regularly scheduled July 21 meeting. She was supportive of Tri-County’s mask order but appeared to ultimately understand the action taken by Glendale City Council.
Public comments lasted just under one hour and after listening to all testimony, City Council decided to consult with their constituents individually and reconvene on Tuesday, July 21, 2020.
TCHD’s Dr. Douglas’ Antics Condemned
Dr. Douglas
Strangely, Sirota approached Deputy City Manager Chuck Line on a number of occasions referring to emails she was receiving from the head of TCHD, Dr. John M. Douglas, indicating that TCHD was going to change the order to address the household controversy. It is a mystery why Dr. Douglas would communicate with Sirota who does not live or work in Glendale, rather than with Glendale officials.
The general disgust with the antics and lack of professionalism of Douglas was exemplified by the comments of Glendale City Manager Linda Cassaday at the meeting. She pointed out she had been on a two hour Zoom conference call with Douglas who failed to ever note the same to her. It was apparent that Douglas was watching the
Glendale proceeding on the live stream and was making positions up as the meeting was going on. In fact, as of the July 21 meeting no changes had, in fact, been made. After the meeting there were calls for the immediate resignation of Dr. Douglas from TCHD.
Sidekick: Emily Sirota, District 9 House Representative, teamed with Tay Anderson on opposing citizens who did not agree with their position. She, along with Anderson, were called an “embarrassment” by some.
Sirota is the wife of David Sirota, author, journalist, former radio host, and former writer for Bernie Sanders. David Sirota has many friends and acquaintances in Glendale and so his wife’s conduct shocked many people. One attendee stated: “I really like David, but she is apparently just an ultimate ‘Karen.’ Why she wants to be the sidekick to an obese, balding, bully punk like Tay Anderson is beyond me. She is not the person I assumed her to be. Unlike David she sure isn’t making any friends among the residents of Glendale or anywhere else from what I can tell.”
Governor Polis Intervenes
But upending the applecart on Thursday, July 16, 2020, Governor Polis issued a statewide mask mandate as the number of COVID-19 cases were showing what he called a “significant uptick.” The order for wearing a face mask applies to everyone in the state who is age 10 and older whenever they are anywhere in public and indoors. People who have medical conditions or disabilities that prevent them from wearing face masks are exempt. On July 21, he issued another edict, last call for alcohol is 10 p.m., effective for 30 days. The question for Glendale then became supporting the Governor’s order or that of TCHD.
At the Glendale City Council meeting on July 14, 2020, Deputy City Manager Chuck Line explained that among the problems with the TCHD’s mandate is that it groups people into “households” instead of simply limiting a group’s size in restaurants, businesses and outdoor recreation. This means, under TCHD’s mandate, people must wear a mask and maintain six feet of social distancing while at restaurants, businesses and outdoors unless they reside in the same home. It was pointed out that the average age in Glendale is 27 and 58% of the residents live alone in apartments. That means that a majority of Glendale residents could never go to a Glendale restaurant with anyone, including their parents and children.
The TCHD mandate appeared to have been drawn for wealthy individuals in single family homes in towns like Cherry Hills Village and not urban areas like Glendale where there are only two single family homes.
Council Takes Action
At that meeting the City Council voted 7 to 0 to support the Governor’s mask order and opt out of the TCHD order. The vote was almost unanimously praised at the podium by speakers from residents and business owners alike.
The Equipment, Operators For Pre-Pandemic Passenger Load
by Glen Richardson
It has been a ridership roller coaster for RTD buses and trains since the pandemic hit in March, and the roads and tracks ahead look bleak. The ritual of standing shoulder-to-shoulder with strangers during rush hour is history, eradicated by the coronavirus.
Triple Threat: RTD needs to triple the number of trains and buses it has in order to serve the same number of passengers the agency had prior to the pandemic.
While the agency grapples with a path forward, it also faces plummeting ridership and tax revenue. Even if RTD’s financial projections — originally forecast as a $1.1 billion revenue loss through 2026 — drops to just 9% vs. the originally predicted 24% — the road ahead remains treacherous and volatile.
Social distancing rules will not only impede but essentially preclude a rebound. Why? To operate what was a pre-pandemic commuter load back in January, now requires three times the equipment and operators because of the cap on number of passengers. Bottom Line: The agency will likely not be able to restore service to its pre-pandemic levels — or anything close to it.
Huge Debt Burden
RTD was in a delicate financial spot even before the coronavirus. By adding five new train lines since 2012 — a fifth is expected to open in Sept. — the agency is drowning in debt. RTD is due to pay $252 million in debt and interest this year alone. That’s why the agency had made a $40 million cut in its 2020 budget. Even if RTD loses significantly less than the quarter-billion dollars originally projected for 2020, the budget is still a full blown problem.
RTD’s FasTrack program has never met the yearly forecasts following voter approval of the package in 2004. The recession that followed made the difference between forecasted and actual revenue even larger. Thus, RTD took out loans to build many of the train lines it promised voters in 2004.
That’s why now it’s saddled with massive debt payments. RTD now estimates that more than 90% of the $194 million in FasTracks sales tax revenue it expects to collect in 2021 will go to debt service.
Cost Cutting
Crowded Cars Eradicated: Standing shoulder-to-shoulder with strangers has been eradicated by the coronavirus. As a result RTD now needs three times the equipment and operators for a pre-pandemic passenger load.
“We have an incredible system right now but it came as an expense,” admits Heather McKillop, RTD’s financial officer. “It comes as a long-term expense that has to be paid off.”
In addition to the lower-than-expected sales tax revenue, staff must also deal with higher-than-expected operations and maintenance costs for its new train lines plus an aging system that needs repair.
The agency is now cutting cost by delaying projects and freezing administrative hiring. RTD is also reportedly considering furlough days for all workers. Collective bargaining agreements with drivers, however, don’t allow for furloughs and likely won’t apply to them. Given the recent hiring and retention problems with drivers, that is probably a good thing.
Altering Schedules
Among the possible solutions is altering schedules to avoid crowded trains while increasing frequency throughout the day rather than being concentrated at rush hour. That assumes, of course employers are willing to stagger work hours to ease crowding in public transportation. Even so, the agency must demonstrate that the system is clean, safe and that social distancing is mandated.
Aging Buses: As coronavirus costs soar, RTD must also maintain an aging bus line that needs repair. In addition, operation and maintenance costs for new train lines is higher than expected.
As with so many other businesses, the scary part for RTD is the potential duration of the crisis — it isn’t going away anytime soon.
RTD resumed fare collection and front-door boarding on all buses July 1 and passengers are required to wear face covering. Nevertheless they’re only buying time with the virus, they’re not removing it from the equation. The agency must also face the fact many previous riders may continue to work remotely — even if only some of the time — when the coronavirus ends.
Reimagining RTD
“The world has changed, we recognize that and we are reimagining RTD to support this new normal and these new challenges,” says Bill Van Meter, assistant general manager of planning.
Much of RTD’s budget gap for 2020 will be funded by a large grant from the Coronavirus Aid, Relief & Economic Security Act (CARES). RTD leadership admits, however, that they cannot count on a second round of funding.
The agency is continuing to reduce costs and streamline to close the large financial gap. Cuts made to the 2020 budget under the worst-case scenario may result in a surplus by the end of the year, which would be carried forward to the 2021 budget. That would help offset projected losses of sales and use tax revenue, decreased fare collection and the unlikely allocation of additional CARES Act funding.
Riding Healthy
Healthy Ride: Beyond social distancing, electrostatic cleaning of cars is an added burden for agency saddled with huge debt, higher-than-expected operations and maintenance costs for its new train lines plus an aging system that needs repair.
Denver and state health officials say social distancing — at least six feet from other passengers — must be maintained. RTD claims it is adding additional vehicles on busy routes to help maintain the required space between passengers.
RTD is also requiring face covering among both passengers and operators. Staying quiet, as conversation — especially yelling or singing — amplify the spread of the virus. “A quiet car is a safer car,” they say.
Finally, health officials urge passengers to use hand sanitizers or wipes after riding buses and trains.
Largest, Most Costly Riots In History Devastate Denver; City Has $226 Million Budget Gap, Up $46 Million In A Month
by Glen Richardson
Already reeling from three months of city-state coronavirus shutdown orders, more than a week of protests and riots against racism and police brutality have left Denver devastated. Clashing with police, rioters looted and caused nightly property damage to businesses just as they were beginning to reopen.
Riots Devastate Denver: More than a week of nightly protests and riots against racism and police brutality have devastated Denver. The riots are the largest and most costly in Denver’s history. Photo: Hart Van Denburg, CPR News
In size, scope and scale, the riots are the largest and most costly in Denver’s history. Protests were longer and more destructive than any previous race riot dating back to the1880 Chinese Halloween riot on Wazee St. Neither the Holy Week protest following MLK’s Assassination or the Chicano Crusade for Justice were of the same magnitude or duration.
The Mile High City’s worst previous riot happened when the Denver Broncos won their first Super Bowl in January 1998. Thousands of fans went on a rampage overturning cars, looting and vandalizing city buildings. Smaller scale disturbances have followed other Broncos championships plus when the Avalanche won their first Stanley Cup in 1996 and again in 2001.
Capitol Carnage
Near the Capitol on Colfax Ave., down the 16th St. Mall and along South Broadway, businesses were boarded-up nightly on block after block. Many had done so as a safety precaution, but others covered damage or the properties had been vandalized. Corporate and privately owned establishments large and small worried about insurance coverage as their bank accounts, hopes and dreams drained. Since businesses were just reopening following the pandemic, employers are considering whether to postpone or return workers to downtown job sites.
Battered by days of protests, nine state buildings, including the State Capitol and adjacent monuments, were damaged or defaced. It included every set of stairs to the Capitol building, every sign, plus lights that line the walkway. Many trees plus the building’s parking lots were also damaged. Some second floor windows were smashed by rocks, including windows at the offices of Gov. Jared Polis and his chief of staff. Windows on the truck of Senate President Leroy Garcia parked outside the Capitol building were also shattered. Restoring-replacing marble, granite, brass and glass doesn’t come cheap. The state is self-insured for up to about half a million dollars.
Rent Roulette: June was the second straight month Denver rents decreased. City may face a serious decline as huge complexes such as the Deco Apartments on Colorado Blvd. open.
Downtown rioters claiming to seek justice, ironically vandalized a monument honoring victims of injustice. Known as the Khachkar Memorial to the Armenian Genocide, it commemorates the victims of all crimes against humanity, including racism and slavery. Initial assessment of riots by the Downtown Denver Partnership suggest that slightly more than half of the damaged properties were along the 16th Street Mall.
Budget Gap Grapple
Overtime costs for large groups of police plus the Colorado National Guard on the ground during the riots will add millions of dollars to the city’s growing budget deficit. Denver is now facing a $226 million projected budget gap for 2020, up $46 million from what the city projected just a month ago (Chronicle June).
Marathon March: More than 3,000 Denver Public Schools students and alumni trooped down Colfax Ave. on May 7, the 11th consecutive day of protests in Denver.
As riots stoked Denver’s financial slide, the city is reaching out to its landlords seeking rent relief. It is a tenant in 15 leases, including the Denver Post Building. Denver recently agreed to a $10 million sublease for an additional 92,000-sq.-ft. on the Post’s ninth floor. That’s in addition to space leased on floors one, seven and eight, where the city will spend about $32 million over the course of those leases.
City departments working in the Post building include Parks & Recreation, Public Health & Environment, and the Office of Emergency Management. On May 4 the City Council unanimously approved a measure proposing to defer rent for three months in exchange for extending each lease term by three months.
Rent Heebie-Jeebies
With the city’s massive apartment buildup and more units expected to open in the coming months, officials are nervously watching how Denver’s rent trends will impact the city’s outlook. Denver rents declined 0.4% in June, and are down slightly compared to the same time last year.
Human Hurricanes: Downtown was boarded up as human hurricanes raged nightly for more than a week. Some covered damage or vandalism, others were a safety precaution.ٌ
Currently, median rents in Denver stand at $1,067 for a one-bedroom and $1,351 for a two-bedroom apartment. June was the second straight month that the city has seen rents decrease after an increase in March as the pandemic hit.
Denver’s year-over-year rent growth lags the state average of 0.3%, as well as the national average of 0.8%. The dips are occurring at a time when rent growth normally picks up steam seasonally. If the trend continues it could lead to tighter competition for rental units at the middle and lower ends of the market, while luxury vacancies get harder to fill.
Cost Cutting
To battle the double-barreled economic hit, city officials say they plan to mitigate through furloughs, spending cuts, hiring slowdowns and investment prioritization. Furloughs are mandatory days off without pay. City employees must now take eight furlough days — five scheduled and three flexible — in 2020, which Mayor Hancock believes will add about $16 million back to the city’s general fund.
Of the approximate 12,000 city employees, all nonuniform employees will be required to take the furloughs. Uniformed employees, who are under collective bargaining agreements, are not required to take them — nor are elected officials,
Mayor Hancock says, however, that Denver is expediting city construction projects which he claims will, “Keep the whole ecosystem of the economy moving.”
Remodel Rein-In
Nevertheless, the Mayor has put a crucial portion of Denver’s massive National Western Center campus remodel on hold. The city’s ramshackle National Western Complex — home of the National Western Stock Show & Rodeo — is supposed to be made over into a hub where food and agricultural science meet arts and entertainment.
Hold Your Horses: As city’s financial woes worsen a key portion of the National Western makeover has been put on hold. Known as the Triangle, a 10,000-seat arena would replace the Denver Coliseum to host the stock show and concerts.
A combination of voter-approved tourism taxes and private investors are meant to pay for the project wedged between I-70 and the Platte River in Elyria-Swansea.
On hold is a key portion of the campus, known as “the Triangle” (named for its shape), with a 10,000-seat arena to replace the Denver Coliseum and host the stock show, concerts, and other events. A new exposition hall and the restoration of a 110-year-old building, which may be converted into a market, are also paused. The Triangle portion of the $1 billion National Western project is estimated at $528 million.
