DNA Might Get Tax Rebate

On the surface, it seems like a strange request. Often, TIF deals are repaid with sales taxes, while if the DNA decides to buy the land and build a 10-story, 300,000-sf building on the site, it will only have property taxes.

What happened, explains Bill Mosher, the developer of the building, is that a new lease for the existing Rocky Mountain News building with the city--keeping 200 DNA call center jobs in the city or county of Denver--and discussions about the aesthetic considerations around the proposed building, have all been grouped together during discussions with Mayor John Hickenlooper and economic development director John Huggins.

Mosher, principal of Mosher Sullivan Development Partners, says that Hickenlooper was extraordinarily pleased that the DNA is considering building a tower across from Civic Center Park. But the mayor would like a 25-foot setback along Colfax, to build a "tree lawn, a park across the park," from Civic Center Park, he says. That would help create a public plaza-type space, such as found around other nearby buildings, except in this case the DNA would be expected to maintain the new, little patch of green.

In addition, the mayor wants another 10-ft setback next to Pioneer Monument, a giant historic bronze sculpture of Kit Carson. Giving up the land, which is not required by city ordinance, will cost the city about $2 million in development rights, Mosher tells GlobeSt.com. Because of a height limitations, the DNA loses about 92,000 sf of buildable space in the new building, or about two full floors, he says.

That will make the design "challenging," to say the least. The initial cost to the DNA was estimated at more than $2 million, and the city agreed to cover about a third of it through a TIF mechanism, Mosher says. In other word, the city would rebate about $250,000 each year for three years through TIF. The city estimates the DNA will pay about $1.5 million annually in property taxes.

But later it was discovered that water lines for the fountain to Pioneer Monument need to be replaced, and that will cost about $1.3 million (including replacing the adjacent sidewalks), and the mayor wants the DNA to foot that bill, too, Mosher says. However, the city won't increase the amount of its rebate, he says.