Denver City Council passes East Colfax hotel financing, but bulk of new members vote no

A scaled-back plan to redevelop a dilapidated East Colfax lodge with the assistance of public funds moved ahead on Monday, though it acquired a chillier reception from the Denver Metropolis Council than it did final yr.

In June 2022, the council voted 9-3 to assist the redevelopment of the All Inn Motel at 3015 E. Colfax Ave. with tax increment financing, or TIF. That mechanism permits a developer to be reimbursed for sure prices by the extra tax income their venture creates.

On the time, property proprietor Encourage Funding Group, led by Brian Toerber, deliberate to renovate the present 54-unit constructing and construct an adjoining new construction, which might have 27 extra rooms and retail area.

However a lender on the venture backed out final yr, forcing Toerber to come back again to council this month with a brand new plan: Simply renovate the present constructing and skip the brand new construction.

The vote was nearer this time: eight in favor and 5 towards.

“I don’t imagine that using $3.3 million in metropolis tax increment financing for a non-public lodge for guests to our metropolis aligns with our metropolis’s pressing wants as we speak,” stated Councilwoman Sarah Parady.

“It drastically modifications the scope of the venture. I don’t see {that a} boutique lodge is the answer for what we’re going through at present,” stated Councilwoman Serena Gonzales-Gutierrez.

The nearer vote speaks to not solely the shift within the scope of the venture, but additionally the shift within the 13-member council, which seated six new members in July. 4 of these new members — Parady, Gonzales-Gutierrez, Shontel Lewis and Flor Alvidrez — voted towards the amended TIF plan, together with second-term Councilwoman Amanda Sandoval.

It was the council’s first considerably divided vote on a development-related difficulty for the reason that new members joined.

Encourage bought the All Inn property in 2016 for $3.55 million. On the time, Toerber stated, it was master-leased to a household that operated it, offering low cost rooms that have been a step above homelessness.

Toerber stated he purchased the positioning anticipating to do a residential venture on the website, however that then-Councilman Albus Brooks inspired him to contemplate a lodge. Toerber stated he spoke to neighbors and located they supported a lodge, and likewise heard that Nationwide Jewish Well being, the hospital one-half mile east, was enthusiastic about seeing extra rooms close to its campus. The sights of Metropolis Park are additionally close by.