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November 2016

 
Transportation
 
The Transit Alliance, creator of the Citizens' Academy which has educated an empowered over 750 Denver Metro residents since 2007, is holding its 6th annual fundraiser breakfast event on Thursday, November 17th from 7:30 AM-10 AM. This year, the event will be at the Denver Performing Arts Center in the Seawell Ballroom.  The keynote speaker will be internationally-recognized transit expert Jarrett Walker.  This is a fundraiser which helps defray the costs of the Transit Alliance programs, including the Citizens' Academy which is held tuition-free.
 
 
This year, the Regional Transportation District (RTD) has opened two new commuter rail lines-the University of Colorado A Line and the B Line. Both lines, as well as the G Line to Wheat Ridge, are part of the Eagle P3 Project. Since the opening of the A and B lines, there has been good news...and some frustrations. Here's an update on the commuter rail lines:
 
On the University of Colorado A Line (commuter rail service between Union Station and Denver International Airport): RTD's rail construction and operations contractor for the Eagle P3 Project, Denver Transit Partners (DTP), has been operating trains under a waiver from the Federal Railroad Administration (FRA). Since the A Line opened April 22, grade-crossing gate times for motorists and pedestrians have not yet reached a level of acceptable consistency. Since opening in April, the A Line has operated with flaggers at each of the crossings to monitor and control traffic in case the gates stay down too long.  Under the waiver, DTP has been paying for the flaggers at each grade crossing. The primary concern is to ensure that motorists and pedestrians can safely cross these at-grade train crossings.
 
On October 14, the FRA issued a waiver extension through Nov. 5.  The FRA indicated that under the waiver extension, progress needs to be made on the grade-crossing gate times for motorists and pedestrians. The goal was to complete the required gate-crossing modifications or, at least, make enough progress to further extend the waiver.
 
The daily average on-time performance for the line is 87.3 percent. RTD General Manager and CEO Dave Genova says, "That is not good enough. We want to be at a minimum of 90 percent or better." The average weekday ridership for September reached 18,881, which for the first time surpassed the projected weekday estimate of 18,600 average riders during the first year of operations.  To put that in perspective, the minimum goal for light rail on-time performance is 90 percent and light rail is performing at approximately 94 percent. These goals were set by the RTD Board of Directors.  Genova explains on-time performance to mean arrival at a location no more than one minute early or no more than five minutes after the scheduled arrival time. Across the entire RTD system, that is a strict standard.
 
In addition, the University of Colorado A Line is operating using a "positive train control" (PTC) system - a safety system mandated by Congress to be installed on all commuter rail systems by 2018. RTD is the first agency to install PTC on a new commuter rail line from the ground up.  DTP is testing new software to improve the timing and signaling. This testing would impact scheduled operations on the University of Colorado A Line, therefore the tests can currently only be performed during non-revenue hours.   
 
On Nov. 2, 2016 the FRA granted RTD and DTP an extension of their waiver, allowing for continued operation of the A Line and the B Line. Under the waiver extension, FRA noted that DTP must implement the items contained in a plan that was presented to FRA.
 
"We greatly appreciate the FRA granting the waiver extension, which is the direct result of the excellent working relationship between FRA, RTD and DTP," said Dave Genova. "The University of Colorado A Line and the B Line trains have and will continue to operate safely while the remaining crossing issues are being addressed. We also appreciate that our passengers have continued to embrace our commuter rail service, as we are already exceeding our ridership projections for the end of the first year of operation for both lines."
 
 
On the B line (commuter rail service between Union Station and Westminster): The daily average on-time performance is 95.9 percent. B line ridership is humming along at 1,511 per weekday in September, which far exceeds the projected estimates of 800 per weekday after one year of operation. The B Line, which opened in July, has a flagger in place at the one crossing on that line. The flaggers will remain in place until all actions are completed to correct crossing gate down time and other issues.
 
 
The G Line (commuter rail service between Union Station and Wheat Ridge) has ceased train testing until the grade crossings on the University of Colorado A Line are resolved. RTD has set a target to open the G Line this fall. The B and G lines use the same grade-crossing technology as the A Line.
 
 
The A, B and G lines are all part of RTD's Eagle P3 Project, designed, financed, built, operated and maintained (DFBOM) by Denver Transit Partners as a public-private partnership (PPP) with RTD. The University of Colorado A Line opened April 22, 2016; the B Line opened July 25, 2016; and the G Line is planned to open this fall.
 
Genova added, "We believe the system is operating safely and we err on the side of caution."  As background, in 2007, the Regional Transportation District (RTD) entered into the Federal Transit Association's (FTA) Public Private Partnership Pilot program or Penta P program.  RTD was the only agency to complete this program, which allowed RTD to combine the University of Colorado A, B and G commuter rail lines into one project, the Eagle P3 Project, and pursue a Full Funding Grant Agreement. As a direct result, RTD was successful in getting a $1 billion federal grant for this combined project.
 
Because of the major negative financial impacts of the Great Recession, without the P3 project approach, RTD would not have had the financial capacity to build or operate any of these three commuter rail lines.
In 2009-2010, following a competitive procurement involving three initial bidders, RTD entered into a 34-year concession agreement with DTP to DFBOM the A, B, and G lines, also known as the Eagle P3 project.
 
All at-grade crossings throughout the RTD system are safe  Train crossings are activating the flashing lights, warning bells and gates well in advance of arrival and often in excess of the required minimum activation times. Flaggers from DTP are staffing the crossings as an added safety measure until the final certification of the crossings is completed within the FRA and Public Utilities Commission (PUC) requirements.  RTD is deducting payment amounts to DTP for performance-related issues and is penalizing DTP for contractual non-performance, totaling $250,000/month for the A Line and $100,000/month for the B Line.
 
Trains are also required to sound horns when they approach at-grade crossings until "quiet zones" are established enabling termination of sounding of the horns.  The process of establishment of quiet zones has been initiated, but is on-hold pending certifications that the crossings are operating properly.  Once the final certifications are issued, RTD can continue the quiet zone application process.
 
Also light rail test trains are turning heads as they move through Aurora.  While smaller and slower than the commuter trains that run between downtown Denver and Denver International Airport, the vivid white trains are undergoing integration testing on the future R Line before the line opens to the public this winter.  The testing began in June and has largely taken place at night to minimize impacts to traffic.  Integration testing is a process whereby light rail vehicles run on the tracks so that technical and performance requirements can be evaluated. Crews measure track clearances, test train and traffic signal systems, and test electrical and communication systems. Once integration testing is completed, the R Line will be turned over to RTD's operations crews who will run the trains to gain familiarity with the new alignment prior to revenue service.
 
RTD and its contractor Regional Rail Partners unearthed a century-old train trestle bridge while working on a drainage project in the Grange Hall area on the North Metro Rail Line. Records indicate the track and bridge were built in 1909 and 1911 to carry the Burnham Yard Lead over Grange Creek. The bridge, a 14 pier, 209 foot long bridge was backfilled in 1951 by Union Pacific after the Grange Creek was piped. After the discovery, construction was halted to give the State Historic Preservation Office an opportunity to look at the find. On determination the bridge had no historical value, crews moved back into the area to continue construction. Learn more about the North Metro Rail Line at:
 
 
Denver City Council Member Mary Beth Susman reports that a couple of exciting things are happening along East Colfax. In partnership with RTD, Denver was awarded $1.35 million from a Federal Transit grant. The funds will go towards planning the Colfax Corridor Connections Bus Rapid Transit (BRT) project which has been in the initial planning stages. The BRT project will stretch from the Auraria Campus to Aurora along Colfax Avenue. Research shows the addition of BRT on Colfax would double the daily ridership along the corridor. The BRT vehicle is a bus like those on the 16th Street Mall with multiple door openings, curb level entry, and the opportunity to buy your ticket at a kiosk. It has a dedicated lane with head start priority at traffic signals.  The planning initiative will improve the Colfax corridor for greater economic development. Neighborhoods along the route will be better connected through an enhanced multimodal system that includes bike lanes, better pedestrian routes, and safety installations. More info on Colfax Corridor Connections at:
 
 
 
Real Estate
 
In September, Mayor Michael B. Hancock signed Council Bill 0625, establishing an affordable housing fund to help create or preserve 6,000 affordable homes for low- to moderate-income families in Denver. It will be financed by property tax revenue and an impact fee on new development that will take effect January 1, 2017.  The new fee will apply to building permits for new square footage, based on fees per square foot.
 
 
The new housing fund will be used to create and preserve housing for households across a wide income spectrum, including people experiencing homelessness and the most vulnerable households. The fund will support permanent housing and supportive services for at-risk residents, low- and moderate-income workforce rental housing, and moderate income for-sale housing. 
 
Council Member Susman also reports that the 9th and Colorado redevelopment project is progressing smoothly according to Frank Cannon of Continuum Partners who hosted a neighborhood meeting in October. The apartments going up around the parking structure are expected to be completed at the end of 2017, and the apartments to the east of the structure should be completed mid-2018. All of the commercial building west of Bellaire is planned to be completed by the end of 2018. They are adding a lane to both 8th avenue and Colorado Boulevard to ease traffic going in and out. The developer is no longer planning a hotel in the preserved bridge structure because the architecture is simply unable to accommodate a hotel design.  Residential units are now being considered.
 
 
Confluence reports that redevelopment of the High Line Canal is being planned by various community organizations.  Measuring 71 miles from canyon to plains the 130-year old canal is one of the nation's longest linear parks with its first headgate just north of Waterton Canyon's rocky mouth, at a diversion dam on the South Platte River. That dam's been closed for repairs, though, since the original structure was wiped out in a flood in 2013. Construction on the dam should wrap up next month -- too late for this year's run.
 
Denver Water owns the High Line, and contracts with seven parks and recreation agencies from Douglas County to Aurora to maintain the canal's bordering trails and greenways. "Other than where the diversion dam broke, High Line is 100 percent functional," says, says Tom Roode, Denver Water chief of operations and maintenance.
 
Despite rumors to the contrary, Denver Water intends to continue running its canal, sending irrigation water to 70 or so active contract holders situated between Waterton Canyon and Fairmount Cemetery, located at about mile 48 on the 71-mile High Line Canal Trail.  Canal users range from wildlife refuges and golf courses to private citizens filling small ponds on their private property. "Current customers," Roode says, "will always have a water supply, no matter what the future beholds for the canal."
 
"The High Line was a major water system when it was first created, but even then it wasn't very profitable because it's a leaky little canal," says Harriet Crittenden LaMair, executive director for the High Line Canal Conservancy.  The High Line changed hands a couple of times, until Denver Water purchased it -- along with Antero Reservoir -- from the city in 1924. The leaky canal delivered water to many of its original contract holders for the next six decades, until customers gradually began coming off of the canal in the 1980s.
 
"We've always known the canal is an inefficient way to deliver water," Roode says, noting that 60 to 80 percent of water put into the canal is lost to seepage and evaporation. "Now," LaMair adds, "there are better, more sustainable and economically feasible ways to bring water to customers. For example, the Rocky Mountain Arsenal, once a major canal customer, converted to a recycled water system in 2003.
 
"The canal's original purpose has changed," Roode says. To that end, the High Line Canal Conservancy and Denver Water have undergone a comprehensive planning project to identify new long-term uses for the space.  While Denver Water will continue to manage the canal for the foreseeable future, it gave the Conservancy permission to create a vision plan for the High Line, and that plan began to materialize by way of a four-part series of Conservancy-sponsored open houses that kicked off in June.
 
Meanwhile, Denver, Cherry Hills Village and Arapahoe County have already begun to address one such crossing problem at the intersection of Hampden Avenue and Colorado Boulevard. Funding has been secured to reroute the trail underneath both busy roads next to Denver's Wellshire Golf Course, and construction is expected to begin in 2017.
 
"We don't know what the future holds," Roode says, adding, "The first question we have to answer is what the vision for the canal will be."
 
 
 
Restaurant Chain Leases Dairy Block Space
Source: Business Denver
Romano's Macaroni Grill, which is relocating its corporate headquarters to Denver from Houston, leased 9,000 square feet of office space at the Dairy Block. The project by McWhinney at 1855 Blake Street involves the renovation of some existing historic buildings and construction of new office, retail and hotel space. The relocation is expected to occur in April and will result in the creation ultimately of at least 50 jobs.
 
Northwood Purchases LoDo Building
Source: Business Denver
Northwood Investors bought 1819 Wazee Street, a 23,500 square foot office building in LoDo. The company paid PostNet $7,880,000, or about $334 per square foot. Both PostNet, a franchised business support company, and Northwood are tenants in the building. 
 
Synergy Energy Expands Downtown Offices
Source: Denver Business Journal
Synergy Resources Corporation is expanding its Denver office space. The oil and gas company is moving into 38,000 square feet in the Denver Energy Center at 1675 Broadway. It had previously relocated its headquarters from Platteville, Colorado into smaller subleased quarters in the adjacent tower of the Denver Energy Center. The company's move is at odds with those of other energy companies that have been closing or reducing operations due to the lower price and demand for oil.  
 
Law Firm Takes Space in Union Tower West
Source: Denver Business Journal
The law firm of Bartlit Beck Herman Palenchar and Scott LLP leased 25,181 square feet in Union Tower West, a new office building under construction at 1801 Wewatta Street near Denver Union Station. The firm will move from its existing space at 1899 Wynkoop Street. Union Tower West is a 100,000 square feet office building being developed by Portman Holdings of Atlanta. The project also includes a 180-room Hotel Indigo and 10,000 square feet of retail space. Construction is scheduled to be completed in 2017. 
 
Evo Opening Denver Outdoor Gear Store
Source: Denver Business Journal
A Seattle based outdoors equipment retailer is opening its first Colorado store. Evo leased 10,000 square feet at 860 Broadway near downtown Denver. The company primarily sells skis, snowboards and mountain bikes. In addition to Seattle, Evo has a store in Portland.
 
Mill Creek to Start Capitol Hill Building
Source: Denver Cityscape
Pending final approvals by Denver planners, Mill Creek Residential Trust will begin construction shortly on Modera Capitol Hill, a 197-unit apartment building southeast of downtown. The eight story building will be located at the northeast corner of Grant Street and East 12th Avenue.
 
Mixed-Use Project Announced for Sloan's Lake
Source: Denver Post
Koelbel and Company and Trailbreak Partners are proposing to develop a mixed-use project on a full block in the Sloan's Lake redevelopment site. The project would occupy the block bounded by Perry and Quitman streets and West 16th and West 17th avenues. It would renovate the derelict Kuhlman Building into 49 affordable apartments and add about 27 for-sale rowhouses, plus a cafe and public plaza. The Kuhlman Building housed a nursing school, dormitory and administrative offices for the St. Anthony's Hospital, which previously occupied the site.
 
 
Cisneros Starting Sloan's Lake Apartments
Source: Business Denver
Leon Cisneros started construction on Sloan's Lake Flats, an 82-unit apartment building in west Denver. The five story building is located at 4601 West Colfax Avenue and will also contain about 6,000 square feet of ground level retail space. Plans filed with the City and County of Denver indicate that units will range in size from about 380 to 508 square feet. Limited liability companies associated with Cisneros acquired the 25,000 square foot site at the northwest corner of Vrain Street and West Colfax Avenue for $1 million in 2015, which equates to about $40 per square foot of land or $12,200 per unit.
 
 
Shift Opens Second Denver Office
Source: Business Denver
Co-working firm Shift opened a second office in Denver. The new quarters are in the former Fistell's Electronics Supply building at West 10th Avenue and Bannock Street, which was converted into 22,000 square feet of office space. Shift also operates a co-working space at 383 Corona Street. 
 
DHA to Build Sloan's Lake Apartments
Source: Business Denver
The Denver Housing Authority plans to develop Vida at Sloan's Lake, a 176-unit apartment building for low and moderate income residents. The 176-unit project will be located on West Colfax Avenue between Perry and Quitman streets, adjacent to the redevelopment of the former St. Anthony's Hospital. The seven-story building will contain a 30,000 square foot medical services center on the ground floor. Funding for the building includes low income housing tax credits provided by the Colorado Housing and Finance Authority. The site is currently being cleared and construction is scheduled to begin in mid-2017. 
 
Affordable Apartments Completed on Welton Street
Source: Denver Real Estate Watch
Century Development completed construction on Welton Place, a 223-unit affordable apartment building at 2300 Welton Street. The project is one of the largest recently developed in metro Denver that is oriented to low and moderate income residents. Welton Park's construction was facilitated by funding from the HUD 221(D)(4) program. low income housing tax credits and private activity bonds issued by the City and County of Denver. 
 
Work Started on Curtis Park Condos
Source: Denver Infill
Construction started on SPark, a 99-unit condominium project in the Curtis Park neighborhood. The community is being developed by Treehouse Brokerage and Development and Tres Birds Workshop on the block bounded by 25th, 26th, Arapahoe and Lawrence streets. SPark will occupy land that once contained public housing units owned by the Denver Housing Authority. A future phase is planned for the block north of 26th Street.  
 
 
Plans Submitted for Blake Street Hotel
Source: Business Denver
InterContinental Hotels Group filed plans with the City and County of Denver for a 150-room Even Hotel at 2250 Blake Street. The eight story hotel would be located on Blake Street between 22nd Street and Park Avenue West, replacing a parking lot on the site. The property is listed for sale by Tom Monks of Equity Commercial Real Estate..
 
Construction to Begin on Cherry Creek North Condos
Source: Business Denver
The Pauls Corporation is preparing to start construction on 155 Steele Street, a 12-story condominium building in Cherry Creek North. The project will contain 71 units. The site, which previously housed a restaurant, has been cleared and Haselden Construction selected as the general contractor.
 
Koelbel to Develop Congress Park Townhouses
Source: Business Denver
Koelbel Urban Homes is developing a 14-unit townhome community in Congress Park. The site at East 14th Avenue and Race Street was formerly the location of the Sewall Child Development Center. The site has been cleared and construction is scheduled to begin shortly. Sale prices were not announced.
 
Denver Starts Brighton Boulevard Reconstruction
Source: Denver Urbanism
City and County of Denver officials broke ground on the reconstruction of Brighton Boulevard in the RiNo neighborhood. The project will redesign the street with landscaping, new roadways, sidewalks, bicycle lanes, traffic signals, street lights and underground utility lines. The project is intended to both encourage and respond to new development along Brighton Boulevard and adjacent streets. The work between 29th and 47th streets will be done in four consecutive phases
 
Construction Starts on Catalyst HTI Building in Rino
Source: Confluence Denver
Koelbel and Company started work on the Catalyst Health Tech Innovation building in RiNo. The 300,000 square foot building is located at 35th Street and Brighton Boulevard and is scheduled to be completed in early 2018. The seven story building will include both office and retail space and will provide office and co-working space for companies, organizations and individuals in health care fields. About 40% of the office space is leased to Kaiser Permanente, which will operate a primary care facility in the building.
 
Zeppelin Starts Work on RiNo Building
Source: Business Denver
Zeppelin Development started construction on a 100,000 square foot mixed-use building in RiNo. Zeppelin Station will be located at 35th and Wazee streets, adjacent to a pedestrian bridge across the railroad tracks to RTD's 38th and Blake commuter rail station. Zeppelin Station will contain 75,000 square feet of office space and 25,000 square feet of ground floor retail space.
 
Mixed-Use Building Purchases on Colorado Boulevard
Source: Business Denver
Kentro Group bought a 26,000 square foot office and retail building in east Denver. The property is located at the northeast corner of East 7th Avenue and Colorado Boulevard. An investment entity associated with Leith Ventures sold the property for $7.1 million, or about $273 per square foot.
 
Denver Starts Construction on Levitt Pavilion
Source: Denver Post
The City and County of Denver began construction on the Levitt Pavilion, a $4.8 million outdoor entertainment and performance venue in southwest Denver. The pavilion is located in Ruby Hill Park at West Florida Avenue and South Platte River Road. It will provide about fifty annual free shows and programs of various types. The pavilion is part of a renovation of the park, which is the largest in southwest Denver.
 
Foundation to Build Baker Apartments
Source: Colorado Real Estate Journal
The Atlantis Community Foundation plans to develop Atlantis, a 63-unit affordable apartment building in the Baker neighborhood of south central Denver. The project at 201 South Cherokee Street received an award of low income housing tax credits from the Colorado Housing and Finance Authority. Construction is scheduled to begin by mid-2017.
 
Koelbel Building Lowry Townhouses
Source: Denver Real Estate Watch
Koelbel Urban Homes started 35 townhouses in the Boulevard One section of the Lowry neighborhood in east Denver. The project is part of the redevelopment of the 70-acre former US Air Force finance center on the west side of Quebec Street at East 1st Avenue. The townhouses are selling in a range of $710,000 to $850,000. Boulevard One will also include detached houses, condominiums, apartments and retail space.
 
AMLI Sells Lowry Apartments
Source: Business Denver
AMLI Residential sold AMLI at Lowry Estates, a 414 unit apartment community in east Denver, for $112,250,000, or about $271,000 per unit. The buyer was an entity affiliated with Mesirow Financial of Chicago. The property is located at the northeast corner of East Alameda Avenue and Fairmount Drive in the Lowry neighborhood. HFF brokers Jeff Haag and Jordan Robbins were agents for the sale.
 
Breakers Sale Sets Denver Record Price
Source: Denver Business Journal
A record price for a Denver area apartment community was set with the sale of The Breakers, a 1,523 unit community at 9099 East Mississippi Avenue in east Denver. A majority interest in the 190-acre property was acquired by BH Equities LLC, Pensam Residential and Wafra Capital Partners. The sellers were Bascom Group and Koelbel and Company, both of which will remain as minority owners. The purchase price was about $350 million, which equates to a per unit price of approximately $229,000. The sale was handled by ARA
 
Vukota Capital Purchases East Denver Apartments
Source: Business Denver
The Stratford at Lowry was acquired by Vukota Capital Management of Greenwood Village The 142-unit community is located at 425 South Galena Way, near the intersection of South Havana Street and East Alameda Avenue. The property was acquired from an affiliate of Jackson Square Properties for $20,750,000, or about $146,000 per unit. The Stratford at Lowry was built in 1979.
 
 

 

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