Amid Scandal And Explosive Growth Denver Public Works Is Under Scrutiny

by Mark Smiley | Apr 29, 2019 | Main Articles

Corrupt Bidding For Convention Center Expansion Alleged; City Auditor Now Scrutinizing On-Call Construction Contracts

by Glen Richardson

Denver’s reputation as one of the Best Places to Live — Ranked #1 by US News & World Report in 2016 — has been dealt another blow. Outdoor activities, proximity to the mountains, art, craft beers and marijuana that draws visitors to our city and distinguishes it from its metropolitan colleagues has been compromised by the Convention Center expansion scandal.

The scandal uncovered last November amounts to dereliction of duty by the City’s Public Works division delivering the services that help define the quality of life in Denver. Public Works said that it discover-ed the bidding process to pick a contractor for the project had been interfered with. Reportedly there was an improper release of city documents, improper discussions about the process and even altering of approved plans. The city claimed two companies, Trammell Crow and Mortenson, tainted the bidding. In response the companies retorted: “If Denver was truly unaware of Trammell Crow’s conduct, it was the City’s lapse in oversight that created the situation.”

The City’s Public Works is responsible for the design and construction management of streets, bridges and public buildings plus transportation through its offices of parking management, transportation planning and operations.

On-Call Audit

Since then a newly completed examination and audit of Public Works by City Auditor Timothy M. O’Brien, CPA, reveals the branch needs to improve contract competitiveness and enforce policies during the bidding process while working on some on-call contracts. “It’s in the best interest of the taxpayers to keep a close eye on the new construction projects going on with all the new bond money,” Auditor O’Brien explains. “I decided it was important to start auditing on-call construction contracts in a way we hadn’t before, to make sure we’re getting what we pay for and that we’re using a truly competitive process.”

The Auditor’s Office worked with CliftonLarsonAllen LLP to complete a third-party examination with limited scope of Halcyon Construction’s on-call contract with Public Works. Halcyon had an agreement with Public Works for up to $3 million to cover work between May 1, 2015, and April 30, 2018. According to the examination, Public Works should expand its pool of contractors to allow for a more competitive environment and for more opportunities for other contractors to be considered for work. Public Works should also make sure to follow the requirements of its mini-bid process, which was not used at all on some projects.

The examination also found significant increases in project costs due to change orders from Halcyon. The company had a considerably higher percentage of change orders than the other small business enterprise contractors in the bidding pool. In some projects tested, the change order amounts plus the original work order resulted in the total project cost being higher than other contractors’ bids submitted during the mini-bid process. Halcyon’s percentage of change orders through November 2018 was 27%, compared to other contractor percentages of 3.5%, 8.3%, and 8.2%. Furthermore, for three of the projects tested, the project managers could not locate any formal documentation evidencing that inspections were performed during these projects that could identify when performance was not in line with the work order.

Ordinance Delayed

Problems with construction management by Denver Public Works was first reported by District 10 City Councilman Wayne New last summer and published in a front page August 2018 Chronicle article. A construction management ordinance was drafted by New at that time and was finally announced by Public Works on March 27, six months later. Implementation of the new Public Works procedures will likely begin at an equally sluggish pace.

“There is no doubt now that the problems have resulted from Public Works’ inability to require pre-permitting and pre-construction planning and construction management agreements regarding area traffic flow, street closure, parking meter management, defined offsite parking arrangements and noise mitigation,” New said then.

The City Councilman says now as he did six months earlier, “it is my hope the ordinance will mitigate the trials and tribulations businesses and residents have experienced in Cherry Creek and throughout the City.”

Biking Boondoggle

The high-profile Executive Director of Public Works Eulois Cleckley — the hand-picked protégé of Mayor Michael B. Hancock — has emerged as a central figure in the growing glitches and uproar within the 1,300 employee Public Works department. He was chosen to implement Hancock’s Mobility Action Plan and thus take attention away from the City’s knotty high-density developments. That job, department insiders say, he has been successfully completing.

Hancock, Cleckley and Councilwoman Mary Beth Susman are now proposing the creation of a new Department of Transportation & Infrastructure. Unlike restructuring the department of Public Works, it will likely require voter approval but would push a rumored “in-the-works $900 million bond issue.” Meanwhile the City’s 2019 budget includes $27 million for transportation and mobility improvements including more than $7 million to build more and more bicycle lanes.

Akin to the unmanaged developments being built in almost every Denver neighborhood, new bike lanes are also clogging traffic and destroying commerce. Bicycle lanes on 14th and 15th Streets in Denver have stolen space from motorists and only made downtown traffic worse, particularly in proximity to hotels and public attractions. Lanes on South Broadway that cost roughly $13 million seem superfluous and have crushed business along the corridor. Owner Ron Vicksman of LeGrue’s — a Broadway landmark for nearly a century — attributed his decision to close after all those years was due to the loss of parking spaces following installation of the bike lanes. Vehicle registration fees, ownership taxes and gasoline excise taxes are big revenue raisers but bicycles aren’t contributors. Critics thus argue they are nothing more than a form of social engineering.

Sawyer Gaining Ground On Susman In District 5 Battle Royale

by Mark Smiley | Apr 1, 2019 | Main Articles

Four Candidates For A Single Seat
by Mark Smiley

The Denver municipal election is set for May 7, 2019, and City Council District 5 promises to be a close race with incumbent Mary Beth Susman vulnerable to defeat or perhaps a run-off election which would be slated for June 4, 2019. A run-off would occur if no candidate receives more than 50% of the vote. In that case, the top two vote getters would go head-to-head in the June 4th election.

Incumbent Susman has a reputation in Denver for being a proponent of high-density development even in quiet residential neighborhoods. As a result of her negative reputation she has garnered three opponents for the District 5 seat. District 5 includes the neighborhoods of Hilltop, Crestmoor, Mayfair, Lowry, Windsor, Washington Virginia Vale, Hale and Montclair.

One candidate who is apparently gaining ground and hoping to defeat Susman on May 7 or at least June 4, is Amanda Sawyer. Sawyer’s message is resonating with voters and experts say she has a legitimate shot to upset the incumbent Susman. Susman has $106,000 in her war chest while Sawyer has approximately $75,000.

Also in the hunt for the District 5 seat are Michele Fry and Steve Replin. Fry, a lifelong Mayfair resident, also has attracted supporters with her experience in government and close ties to the community. She has raised $24,000 to date.

Replin, although a dark horse candidate, has proposed a two-year moratorium on building anything within the city. To date, Replin has not yet reported any outside contributions to his campaign.

District 5 is known for activists fighting inappropriate development and, in at least one case, they were victorious. The proposed Green Flats project on Holly Street, which this newspaper covered extensively, was defeated by neighborhood groups even though Councilperson Susman tried to force the development on the neighborhood.

The Green Flats project is what prompted Sawyer’s interest to run for the District 5 seat. She has been vocal about development in her district and is unafraid to ask the tough questions of developers. She recognizes that development will happen in Denver, but she wants a more thoughtful approach and protection of the character of the neighborhoods.

As Denver voters are grappling with this decision in District 5, a candidate forum is scheduled to help them make an informed decision. The Cranmer Park/Hilltop Civic Association and Bellevue-Hale Neighborhood Association will co-host a forum on Tuesday, April 16, 2019, at 6:30 p.m. for the candidates seeking the District 5 Denver City Council seat: Michele Fry, Steve Replin, Amanda Sawyer and Mary Beth Susman.

Additionally, there will be information and presentations on ballot initiatives. Specifically, they have invited the supporting and opposing organizations for Initiative 300, The Right To Survive, to present their positions an take questions.

The forum will be held at Hill Campus of Arts and Sciences located at 451 Clermont Street in Denver. For more information on the candidates, visit their websites at: sawyerfordenvercitycouncil.org, www.fry for5.com, www.replinforcouncil.com, and www.susmanfordistrict5.com.

BLACK TIE SOCIETY CIVIL WAR

by Mark Smiley | Apr 1, 2019 | Main Articles

The Fight Leads Back To Brownstein Farber Law Firm
by Julie Hayden

It is the fight and the lawsuit that all the rich and powerful in Denver are obsessively talking about, but is being kept out of the news by the efforts of the all powerful Brownstein Hyatt Farber and Schreck LLP law firm (Brownstein Farber) its principals and/or persons on their behalf. It has been dubbed the “Black Tie Society Civil War” as many of the litigants are featured on webpages of “Blacktie Colorado” attending high society and major charitable soirées. The lawsuit accuses Cherry Creek multi-millionaire James Lustig of “masterminding” the scheme, using friends and family, tied by blood and marriage as “straw purchasers” to reap millions of dollars in stock manipulations. If you think the stock market is rigged for the benefit of the rich, the lawsuit appears to be proof positive of that fact.

Berlin Claims

David Berlin, a Denver securities mogul, through two investment companies he controls (Detroit Street Partners, Inc. and Birchwood Resources, Inc.) filed two lawsuits in late 2017 and early 2018 which were later consolidated into a single suit (the Lawsuit) in Federal District Court in Colorado. His companies are suing 20-odd individuals and companies who are a veritable “Who’s Who” of Denver society, alleging securities fraud and racketeering.

In the lawsuits Berlin alleged that the parties masterminded by James A. Lustig, another major Denver securities mogul, participated in a market manipulation scheme to fraudulently obtain allocation of initial public offering (IPO) shares from J.P. Morgan Securities LLC and eight other banks which include such other financial titans as Goldman Sachs & Co., Deutsche Bank Securities Inc., and Citigroup Markets Inc. (the Banks). He alleges they engaged in “countless instances of market manipulation, wire fraud, securities fraud and other racketeering activities” that cost Berlin entities “to the tune of tens of millions of dollars.” Lustig’s wife, Debbie, is the sister of Cindy Farber, who is the wife of Steve Farber, a co-founder of the all-powerful Brownstein Farber law firm. Steve Farber is in turn accused of heading one of the key defendants CLFS Equities, LLLP (CLFS).

Brownstein Farber Drafts Key Documents

Berlin claims Brownstein Farber drafted contractual provisions among the defendants that “would purport to keep [the scheme] confidential and “and were used in, “racketeering activity” as defined by Colorado statutes “and that Brownstein Farber’s actions could be construed as “having participated in racketeering enterprise” under Colorado law.

It goes on to specifically allege that “upon information and belief, Brownstein Farber co-founder Steven W. Farber is the ‘F” in CLFS.”

IPOs

The consolidated Lawsuit revolves around the fact that major banks act as underwriters for the initial offering to the public of shares in a company (IPO shares). The banks cannot simply reserve the IPO shares for themselves but must offer them to independent entities or individuals. The initial price of the IPO is set by the banks in consultation with company going public with the banks having the major say. If the initial offering price is set low enough it is almost guaranteed that the IPO shares can immediately be resold for a profit with little or no risk in the secondary market.

The holders of the IPO shares, unlike average investors, will make millions off the initial offering even if the shares later tank. Over the years the banks have indirectly tried to figure out various schemes to take as much of the profits on the immediate resale of IPO shares as possible for themselves which may have dubious legality, but they have gotten away with it for many a decade. The consolidated Lawsuit goes to extreme lengths not to allege any wrongful actions by the Banks and even refers to them as the “Innocent Banks” as Berlin clearly does not wish to offend some of the the most powerful financial institutions in the world.

The Allocation Scam

Berlin’s companies were for many years allocated IPO shares due to the fact they were deemed preferred customers with ten million dollars or more deposited with the bank. In order to rake in more of the profits the Banks began in 2011 to demand that the customer provide a minimum of $600,000 per year in commissions from trading through the bank rather than simply $10 million on deposit. In order to spread the wealth around the Banks adopted a rule that a group of clients with $600,000 or more would be given a greater number of IPOs than a single customer with the same amount of total commissions. Thus five customers with $600,000 in commissions each would collectively garner more IPO shares than a single customer who generated $3 million in commissions.

Berlin alleges that Lustig, with the help and connivance of Brownstein Farber, devised a racketeering scheme to take advantage of the new allocation rules to the detriment of the Berlin companies. Lustig set up a scheme whereby Lustig and other entities including CLFS would advance to straw companies he set up for relatives and friends $600,000 plus. The straw companies were then directed to buy shares of identified companies that would be quickly sold that afternoon. The sole purpose of the trades was to generate commissions for the banks so that the straw company would be allocated IPO shares. Berlin claimed the quick purchases and sale of stock with no purpose to profit on the sale were illegal “churning” and “wash sales.” The $600,000 plus would be repaid with interest by the straw companies. Forty percent of the profits from the immediate sale of IPO shares would then be paid to Lustig or Lustig entities under the guise of accounting and administrative services.

What is amazing is that even after paying the Banks huge sums of money in worthless commissions there was so much money in the reselling of the IPO shares that Lustig and the other Defendants still netted millions in profits.

Defendants’ Defenses

A principal defense by many of the Defendants to the purported illegal activity appears to the participation of Brownstein Farber in drawing up the documents regarding the purported scheme including non-disclosure agreements alleged to hide the illegal scheme from federal and state regulators. As stated in the Motion to Dismiss by Jeremy and Mia Abelson (son-in-law and daughter of James A. Lustig):

In fact, there would be no reason for anyone, especially the Abelson Defendants, to think there was anything untoward in actively and deliberately maximizing their eligibility for IPO allocation because the lawyers involved in the effort had raised no concerns or warnings. Specifically, according to Plaintiffs, the “highly sophisticated” Brownstein Hyatt Farber Schreck, LLP (“Brownstein”) was retained to draft non-disclosure agreements (“NDAs”) to be signed by the entities with which the Lustig Defendants are alleged to have engaged. Brownstein participation reassured the Abelson Defendants that engaging with the Lustig Defendants — and even entering into confidentiality agreements in connection with such engagement — was not unlawful or even problematic in any way . . . It is also evidence of good faith on the part of the Abelson Defendants (and negation of intent to defraud . . .) that they understood that highly reputable lawyers were involved and raised no red flags.

It is not clear how much of the defense that Brownstein Farber was involved doing legal work for the project (and therefore nothing could possibly be illegal) will stand up in court. Berlin alleges that the straw companies necessarily engaged in fraud on the Banks in order to get the IPO shares including that the funds used were from personal or family wealth, and (2) that Lustig did not have a beneficial interest in the profits from the IPO shares. Various of the Defendants seem to indicate they signed whatever Lustig and/or Brownstein Farber told them to sign without obtaining their own separate legal counsel.

Bo Brownstein To Jail And Close Connections

The Defendants were, however, undoubtedly aware that Drew “Bo” Brownstein (the son of the co-founder of Brownstein Farber, Norm Brownstein), was sentenced in 2012 to federal prison for a year and a day and fined $2.44 million for illegal insider securities trades. But in that case no one alleged that Brownstein Farber firm had set up the illegal insider trades.

The willingness to rely simply on Brownstein Farber was perhaps due to the close connections of all of the Defendants to each other. In addition, some of the Defendants may have employed Brownstein Farber in other unrelated legal matters. The Defendants are a dizzying montage of relatives and friends, including James Lustig’s close acquaintance William Sander and Sander’s step-son Jonathan Marsico, the nephew of mutual fund giant Tom Marsico; brothers Brandon and Brett Perry, in addition to their mother, Ricki Rest; Buzz Alterman and his ex-brother-in-law, Andrew Harrison; real estate titan Skip Miller, and Miller’s son-in-law and work colleague Steve Shoflick, who is married to Lustig’s niece; Lustig’s brother-in-law, and work colleague. Local investors Samuel Zaitz and William Hall are also Defendants along with Jake Cohen, Todd Eberstein and Jan Falber.

One of the other defendants, Jeremy Abelson typifies the close connections between the alleged “straw purchasers”: he is married to Lustig’s niece Mia Abelson who is Skip Miller’s daughter, is Schoflick’s brother-in-law and brother-in-law to Mia’s sister Melissa Mackiernan, another Defendant.

Other Defendants listed in the lawsuit include Denny Pepper, Ronald Vlosich, Kenneth Ricek, Aaron Wolk, John Goldenberg and Jonathon Vinnik.

David Berlin himself was very much part of that close-knit group of high society friends and relatives that he is now suing. As stated in Lustig’s Motion to Dismiss:

Demonstrating that David Berlin, the owner of both Plaintiffs, previously worked alongside many of the defendants and engaged in the conduct he now labels racketeering. Plaintiffs all allege they ‘previously had access to a database’ controlled by the Lustig defendants which contains information about IPO share distribution practices.

The Defendants, along with the defense that the documents were drawn up by Brownstein Farber and therefore must be legal, also state that the fraudulent misstatements were made to the Banks and not to Berlin and Berlin did not rely on them to his detriment. Moreover, they claim that the sale and immediate reselling of the stocks were not illegal “churning” or “wash sales” as those terms are defined. They also state that if Berlin has any cause of action it is against the Banks who drew up any and all new IPO allocation criteria that he is now complaining about.

Out Of The Public Eye

Why Brownstein Farber or people on their behalf have tried, heretofore highly successfully, to keep the lawsuits out of public purview is that in the lawsuits appear possible alleged criminal activities by Brownstein Farber and as well as each of the Defendants. Insiders indicate that at least in Colorado Brownstein Farber is almost bulletproof. The U.S. Attorney for the District of Colorado at the time of the filings was Bob Troyer, who was a former Brownstein Farber partner. The new U.S. Attorney for Colorado is Jason Dunn who was, at the time of his appointment, a Brownstein Farber partner.

Any claim of violation of Colorado securities or racketeering law would be brought by Colorado Attorney General Phil Weiser, who was elected in no small part because of money contributed or raised by Brownstein Farber. Insiders also note that most federal and state judges in Colorado have gotten their positions due in large part to the influence of Brownstein Farber, making any criminal legal action difficult.

The only real concern to the law firm is if authorities outside of Colorado take notice. Insiders note that the charges against Bo Brownstein were brought by the U.S. Attorney for Southern District of New York in a federal court in New York City.

The Denver federal court docket indicates that next action to be taken in the lawsuit is scheduled for May for a Status Conference with all the parties. More people may start to pay attention to the Black Tie Society Civil War as public awareness of its existence and implications grows and grows.


The above article cites Jeremy & Mia Abelson and Jonathan Marsico & Sam Zaitz as defendants in the Berlin litigation matter. They were all dismissed from the matter and are no longer defendants in this action.

Halt ‘Denveright Plan’ Vote Until After City’s Upcoming Elections INC Implores

by Mark Smiley | Feb 25, 2019 | Main Articles

Meetings To Explain Plan’s Impact Haven’t Occurred; Lowry’s Christine O’Connor Named Person Of The Year

by Glen Richardson

Denver’s Inter-Neighborhood Cooperation or INC passed a resolution Feb. 8 to postpone bringing the city’s “Denveright Plan” to a City Council vote until after the upcoming city elections. Little more than a couple of weeks earlier on Jan. 23, the organization named Christine O’Connor INC’s Person of the Year.

The voluntary coalition of registered neighborhood organizations representing two-thirds of Denver households urged the delay because the next City Council shouldn’t be accountable for a plan voted in by a prior council. Furthermore they say that, “the process did not include all neighborhood voices.” The Plan is currently scheduled for a City Council vote on April 15.

O’Connor received the Virginia Oredson Memorial Award during the 33rd Annual Awards Dinner held at the Holiday Inn Denver-Cherry Creek. For over a decade, she has led Lowry United Neighborhoods and worked with the broader east Denver neighborhoods on environmental and development issues on the former Lowry Air Force base property. In presenting the award the organization described her as, “An amazing and courageous community advocate and friend to so many.”

Daunting Documents

INC declared at its February Delegate Meeting that the sheer volume of the “Denveright” plan documents has been daunting for most neighborhood organizations and interested citizens to respond to thoroughly and intelligently by City-set deadlines. The documents total more than 1,000 pages, with over 100 goals, nearly 300 policies and recommendations, and more than 450 strategies addressing development through 2040 as Denver’s population increases.

The resolution also alleges, “meetings with neighborhoods to explain impacts of the documents have not occurred throughout the city; further, the city’s official website listing information received through citizen and neighborhood comments is missing many individual comments that were formally submitted.”

Also, the group asserts, “Information identifying changes made to the plan documents for the second draft are divorced from the materials listing specific requests for changes and additions received from the public.” Finally, according to INC, plan documents continue to be incomplete and vague in terms of addressing impacts on the city’s budget and work program, especially with the more than 450 proposed strategies.

Fights For Citizens

Person of the Year O’Connor has worked tirelessly to support the needs and desires of some of Denver’s most burdened neighborhoods, such as Cole, Globeville and Elyria/ Swansea. She currently serves as INC’s representative to the Citizens Action Group to the I-70 Superfund Site.

She worked with neighbors across north Denver, and participated in litigation regarding the  Platte to Park Hill Drainage Project and Denver’s taking of City Park Golf Course to support expansion of I-70.

More recently, O’Connor became one of the leaders in initiating a 2019 ballot measure called “Let Denver Vote.” This ballot measure, if approved, will allow Denver to pursue a future Winter Olympics’ bid only if spending is first approved by Denver voters. What Christine says she values most about INC is “the powerful link it provides among neighbors citywide and the opportunity to work on issues that go beyond one neighborhood.” Her hope for INC is that the “newer members will take the helm and pour their hearts and souls into bettering our City in the decades to come!”

City Wide Awards

Drew Dutcher of the Elyria-Swansea neighborhood was named Outstanding Delegate of the Year. The honor credits him “for his outstanding representation from his neighborhood and representation on behalf of INC to Citizen Advisory Boards connected to city endeavors.”

Public Safety honors were given to four groups for their, “legal win for a public health study related to environment health connected to the I-70 expansion.” They were the Chaffee Neighborhood, Elyria-Swansea Neighborhood, Colorado Latino Forum and the Colorado Sierra Club.

Ronnie Crawford from the Overland Park Neighborhood was presented with the Sustainability Award for his efforts to work with the city to sustain the environment connected to river ways, specifically the Platte River.

Sundial Star

Hilltop resident Denise Sanderson received a Neighborhood Star Award for her leadership of the Save the Sundial Committee and the significant fundraising efforts that were necessary to complete renovation of the Sundial & Plaza.

She was instrumental in getting the Sundial & Plaza put on Colorado’s “Most Endangered Places” list, giving the fundraising project more visibility and a sense of urgency. After years of raising awareness and funding to save this historic landmark, in early 2014, the Committee turned to The Park People, who adopted the project, taking the outreach and fundraising to another level.

It took nearly a decade, but the effort came to a celebratory close last year on Oct 3 when the Cranmer Park Sundial & Plaza officially reopened after completing nine months of restoration work. Now the Denver neighborhood park with a sweeping view of the Front Range has a solid foundation for generations to come.

More Valley Stars

Nine other residents were also given Neighborhood Star Awards for their work on specific projects that impacted the community. They are in alphabetical order:

Anne Callison, Winston Downs’s neighborhood, for her balanced leadership regarding information and education for a liquor-cabaret dance license at a cemetery.

Glenn Harper of the Sun Valley neighborhood for opening his restaurant to support a food bank and education to future chefs in his neighborhood.

John Robinson in the Harvey Park neighborhood for work on the Loretto Heights redesign and neighborhood festival fundraiser.

Greater Park Hill’s Blair Taylor for her activism in representing all neighborhood voices in projects that impact her area.

Diane Travis, Uptown on the Hill (Swallow Hill) for her education of residents and city on how to efficiently save historic flagstone sidewalks and for getting her suggestions adopted into city sidewalk planning.

Michelle Valeri from the Colfax Business Improvement District for her success with the Colfax Works program that employs the homeless.

Phyllis Ward of the University Park Community for her dedication to ensuring the neighborhood newsletter was distributed.

Brooke Webb in the Virginia Village-Ellis area for her efforts to improve the public image of the Ellis Elementary School and PTA.

Ann White of Montbello 20/20 for her leadership in health awareness and representing Montbello on the WorkNow program.

Denver Heroin Sites Bill Pulled

by Mark Smiley | Feb 25, 2019 | Main Articles

Rep. Garnett Blames Albus Brooks And Denver For Stunning Defeat
by Glen Richardson

In a stunning reversal of fortune, the sponsors of the so-called Safe Injection Sites (“SIS”) bill was dropped by its sponsors — House Majority Leader Alec Garnett and State Senator Brittany Pettersen. The proposed but never introduced bill would have, in effect, made heroin sales and use legal at and around designated sites, including 231 East Colfax by the State Capitol. At the SIS centers would be medical personnel to administer naloxone or other drugs which would revive a heroin user from overdoses, including where fentanyl is added to the heroin.

The SIS centers would also allow injection of methamphetamines and other drugs, including what is known as a “speed ball” where methamphetamines and heroin are mixed together. The bill was promoted as being “compassionate” to heroin users and limiting the harm incurred by users. Critics said the bill was little more than a backdoor method to legalize heroin and meth sales and use which critics say has been a long-sought goal of Mexican drug cartels who supply most of the heroin/ meth to Denver and the state.

Garnett Attacks Denver

State House Majority Leader Alec Garnett pointed the finger at Denver and City Councilman Albus Brooks for the loss. “I think Denver kind of wanted to be the first city in the country,” Garnett stated, “but I think the eagerness drew a lot of negative attention from the public, from the U.S. attorney and the feds.”

Councilman Brooks was the lead person on the Denver push. He brought Harm Reduction Action Center head Lisa Raville before the City Council. He obtained City Council approval by a 12 to 1 vote with only Kevin Flynn voting against the proposal. However, the approval of one or more SIS centers in Denver was made subject to approval of the State Legislature.

Brooks Responds

Brooks, in turn, blamed 710 KNUS radio host (and Chronicle columnist) Peter Boyles who, along with fellow radio host Stephan Tubbs, went to Vancouver, Canada, to see how SIS was working in that city which had approved them in 2003. The two broadcast live from Vancouver and posted pictures and videos of what they found along East Hastings Street which once had been a historic portion of Vancouver analogous to Larimer Square.

Radio Hosts In Vancouver

The descriptions and photographs painted a horrific picture of masses of heroin and meth users all along Hastings and adjoining streets. The Central American drug soldiers, they reported, controlled the streets and openly sold their wares to one and all. The SIS center was not cheerful and clean but a place of misery and pain, they reported. Many users did not bother to go into the SIS center itself, but simply shot up in the alleys and along the sidewalks. The addicts came to East Hastings Street they indicated not for the SIS center but because heroin and other drugs could be bought and consumed without fear of interruption or arrest.

Tubbs described one addict on the floor of the SIS center while his girlfriend jammed needles in his neck attempting to find a vein as the vein system in other parts of his body had apparently failed to be available.

The personnel at the SIS center told the two that they did not try to get heroin and other users into rehab as it would cause them to feel stigmatized and less likely to frequent the SIS center.

Brooks indicated that the live broadcasts had caused a groundswell of opposition to the SIS bill at the State Capitol. Brooks tweeted out: “Radio Hosts don’t have evidence. Last time I checked that’s not the truth.” Brooks claimed that he had been to Vancouver and saw nothing of the sort when he visited. It is not clear whether he was claiming the pictures and videos were somehow doctored or that he had been given a phony “Potemkin Village” tour of East Hastings and Vancouver.

Checks of Brooks’ expense records, according to former Speaker of the House Frank McNulty, show no expenses whatsoever concerning any trip to Vancouver. That fact could indicate he never, in fact, went to Vancouver, or his plane, hotel and other expenses were paid by third parties which could be illegal.

Pettersen’s Viewpoint

Interestingly co-sponsor State Senator Brittany Pettersen refused to appear with Garnett at his news conference and instead held her own conference. Insiders indicate that there is, in fact, a growing rift between Pettersen and Garnett. They indicate that Garnett, by blaming Denver and Brooks, was indirectly criticizing Pettersen’s husband, Ian Silverii, the executive director of ProgressNow Colorado, who had helped behind the scenes with the Denver rollout of the SIS legislation.

Supporters of Silverii think Garnett’s criticism of Denver and by implication Silverii and Brooks is badly misplaced. They point out that Silverii had obtained highly favorable coverage for SIS in The Denver Post, Westword, 5280 magazine, 630 KHOW radio and many other media outlets. Many others credit him with turning Channel 9 news anchor Kyle Clark into a very strong supporter of SIS centers and its failure is seen by many as a black mark on Clark’s record and reputation.

Pettersen in her news conference did not put the blame on Denver and by implication Brooks and Silverii but rather on Patrick Neville, the Republican Minority Leader of the House.

“This got caught up in the fact that Democrats hold every chamber, and there are desperate attempts to try to regain power,” Pettersen said. “This has been chosen as a political top target.”

She went on to note, “I’m unwilling to give them a political platform.”

Pettersen acknowledged that she needed no Republican votes and even had a Republican sponsor for her bill, Kevin Priola. She had, however, lost her own Democratic caucus.

The Fight Continues

The supporters of SIS centers are not going to simply disappear. An enormous amount of money was expended to promote the SIS legislation in Denver and at the Capitol and the financial backers are apparently not pleased. They are reportedly putting an enormous amount of pressure on Albus Brooks, Ian Silverii and Lisa Raville to figure out some way to legalize, directly or indirectly, heroin/meth sales in Denver by this summer.

Raville has told the press “It’s not May 4th yet. We certainly aren’t giving up the fight. We continue to look forward. We know this is the gold-standard evidence-based intervention that we want to push forward with.” May 4th is the last day of the Colorado legislative session and bills such as the “hospital provider fee” bill have been introduced and passed even at the very end of the legislative calendar.

Brooks in turn has tweeted out, “Denver will find a way to address this Public Health Crisis with or without the State.”

Opponents including Patrick Neville have indicated that they “will be there” to battle heroin legalization wherever the fight may be.

Retail Reversal: Shopping Center In Cherry Creek Making A Comeback

by Mark Smiley | Jan 28, 2019 | Main Articles

Retailers Click To Brick And Are Moving Into The Mall; Outdoor Shops Trading Storefronts For Mall Across Street
by Glen Richardson

Seemingly in a downward spiral following the addition of paid parking, the Cherry Creek Shopping Center is making a comeback.

As the New Year was getting underway General Manager Nick LeMasters disclosed that, “every single space in the mall is either occupied, under negotiation or under construction.” Unfazed by e-commerce and aided by developers and contractors choking retailers out of Cherry Creek North, LeMasters now says, “We are effectively full.”

As business stages a comeback, the shopping center is making capital investments to keep the momentum on an upward curve. For starters, the mall is installing solar panels on the roof along its western side. LeMasters says the project is nearly complete and will likely be turned on next month (March). “Because of the predominance of the sun in Denver — 300 days of sunshine — we’re going to be effectively powering half of the common-area energy supply with these solar panels,” he says. “It will reduce our overhead significantly, and it’s the right thing to do,” he points out.

Jumping Into Mall

Biggest news as 2019 got underway is that French luxury brand Hermes will begin construction of a 5,000-sq.-ft. space within the mall early this year. Expected to open in 2020, the mall store will replace the company’s standalone site across the street at 105 Fillmore St.

The upscale retailer will be placed next to similar shops, such as Louis Vuitton, Tiffany & Co. and Tory Burch, according to LeMasters. “Hermes is the personification of luxury, and luxury retailers want to be next to other luxury retailers,” he notes. “To be next to other luxury retailers, there’s spin-off business. They tend to complement each other more than compete with each other.”

Opening in late November, North Face also moved into the mall from its former Cherry Creek North location at 100 Detroit St. The retailer now has 5,000-sq. ft. in the lower level of the mall, near Nordstrom. The space used to be part of the jewelry company Tiffany and Co. that relocated within the mall. The move followed the announcement that the North Face’s central office is moving to Denver from San Francisco as part of parent company VF Corp.’s headquarters relocation.

More Making Leap

Hermes and North Face aren’t the only Cherry Creek North retailers who have recently moved into the shopping center. Jewelry maker Alex and Ani made the jump to the mall from 2827 E. 3rd Ave. Earlier this year women’s apparel store White House Black Market relocated to the mall from Cherry Creek North’s Clayton Lane. Also, Lucy Activewear closed its store on Clayton Lane and was folded into North Face now located in the mall. Plus A Pea in the Pod moved across 1st Ave. into the mall.

New additions to the Cherry Creek Shopping Center at year’s end included San Francisco- based candy shop Lolli and Pops, as well as several businesses that started as Internet retailers. Companies that started in the mall as popup operations and now have their own stores there include mattress maker Casper and stationary bike company Peloton.

Two major retailers — Macy’s Furniture Gallery and The Container Store — relocated within the shopping center, moving from the west to the east side of the mall. Macy’s Furniture Gallery is now adjacent to Macy’s Department Store. The re-imagined Container Store features an open layout plus a Custom Closet Design Center. The two stores built out in the space previously housing Rite Aid and Safeway.

Luring New Brands

The Shopping Center has recently lured several new brands. The Casper store allows customers to schedule a 30-minute “sleep trial” on a Casper mattress in one of the company’s makeshift bedrooms. Peloton opened a showroom at the mall in 2017 where potential buyers can demo the company’s stationary bikes. And Amazon has a pop-up store at the shopping center, where consumers can play around with its Fire tablets and Alexa smart-home devices.

Untuckit — a men’s apparel brand that sells shirts designed to wear untucked — is also opening a store in the shopping center, reveals LeMasters. “They’re going to start construction relatively soon,” he adds. “I think we’re going to see them in the first quarter of 2019.” Launched in 2011, its shirts are shorter than the typical men’s dress shirt. After four years as an entirely online retailer, the brand’s first brick-and-mortar store opened in 2015 in New York’s SoHo district.

“It’s interesting to see this trend that’s emerging with these native online brands that are recognizing the importance of brick-and-mortars,” LeMasters observes. “These brands were thought to be a threat to brick-and-mortar retail, but they’re clearly going to have the opposite effect.”

Stores, Theatre Updating

To encourage tenants to update their looks, LeMasters says the shopping center now offers leases shorter than the 10-year industry standard and builds “midterm remodel” language into its leases.

“We’ve found that a lot of retailers want to renovate,” LeMasters said. “They’re rolling out stores all the time and as they do so, they evolve their concept and their presentation.” Pandora is an example of a store in the midst of a midterm remodel.

More: AMC Theatres — an original tenant of the mall — is upgrading its look in 2019, which LeMasters called overdue. “Today’s moviegoer expects an upscale experience,” he says. “Our customers love the convenience of this particular theater, but it hasn’t kept pace with others in the market. It will have a completely new and upscale feel to it.”

Space Shuffle, New Stores

Stores are also getting moved around in the mall in the hopes of boosting sales. For example, LensCrafters soon will move to a different storefront in the mall, and a new retailer — which LeMasters declined to disclose — will take its place.

The year-end addition of Zara, a popular European outfitter, also required rearranging, so Brooks Brothers and Express both moved into different mall locations. Zara has taken up 38,000-sq. ft., making it the largest non-department store in the mall.

LeMasters says the mall will continue to look for emerging retail categories to bring in, such as e-commerce brands adding brick-and-mortar stores and not just selling online. Casper, Peloton and Amazon are examples of such businesses now in the Cherry Creek Shopping Center.

Making Mall Leap: The standalone Hermes store at 1st and Fillmore in Cherry Creek North will begin construction of a 5,000-sq.-ft. space in the Shopping Center early this year. The French luxury brand expects to open the mall store in 2020 to replace the site across the street.