DENVER-The Denver Urban Renewal Authority's board, with one dissenting vote, agreed to negotiate exclusively with former Mayor Wellington E. Webb and developer Jim Sullivan, for the redevelopment Dahlia Square shopping center on East 33rd Avenue and Dahlia Street in Northeast Denver. Also on their team, called Alliance Development Partners, is Ron Bernstein. Bernstein served as the economic development director for Webb when he was mayor. Bernstein also has close ties to the center. His father built and owned it in the 1950s. Once a thriving center with a grocery store, bowling alley and a men's clothing store, it fell on to hard times more than 25 years ago.

"We know the history of this project," Webb recently told the DURA board. "This is a lifelong commitment." The DURA board will next consider the Alliance's proposal in mid-January. Currently, the preliminary plan calls for 203 homes in a wide range of prices, and a 12,500-sf, freestanding building for Denver Health clinic. The group also is in talks with the Catholic Archdiocese for affordable housing and with the fraternity Kappa Alpha Psi for senior housing.

But plans are evolving. Earlier plans called for two seven-story towers. In the current plans, the tallest building has four stories. It's too early to tell if there is going to be any retail on the site, Webb tells GlobeSt.com.

The group has agreed to pay the appraised value of the land of $10.35 per sf, which equates to about $3.5 million. Webb says his group is faced with two choices: Either build expensive homes on the site, or increase density. He notes that other developers would be competing for the deal if it would be a big money maker.

"Obviously, they need to take this plan from the conceptual level to the real level," says Cameron Berton, redevelopment analyst for DURA. "As everyone understands, DURA's participation is required as far as acquiring the land, cleaning the land and demolishing the existing buildings on the property. Now, we need a private developer. We welcome the opportunity to take it to the next step."

Webb, for his part, notes that the "community has been very patient," as far as the redevelopment. He tells GlobeSt.com that he is "very pleased" to have gotten DURA's blessing at this stage, but there are still a lot of issues that must be worked out both on DURA's side and from the development side. While converting Dahlia Square into something that the city and the neighborhood will be proud of is important, he notes that it still has to make his private group some money, too. "This is not a gift," the former mayor tells GlobeSt.com. Webb also adds that it has been more than two years since he has left office. City regulations required him to wait at least six months to work on a city project.