Denver Newspaper Agency Gets Lease, Tax Break

The DNA handles all of the business dealings for the Rocky Mountain News and the Denver Post, which remain as independent editorial voices through a joint operating agreement.

The new building, which would house the News and the Post, as well as the DNA, would have 10 to 12 stories and about 300,000 sf of space, as well as 700 to 800 covered parking spaces. The DNA has the land under contract and is expected to close next month. The rebate would be used to offset improvements.

With one dissenting vote, the council also agreed to a new lease with the DNA for the Rocky Mountain News building at 100 Gene Amole Way. The city bought the building last year for $16 million for a proposed justice and jail center, but the News continues to occupy it. The city hasn't decided yet whether to put the jail and courtroom on the site of the News building.

Under the new agreement, the DNA would pay $150,000 per month in November and December of this year. Next year, the DNA will pay $125,000 per month and $150,000 per month at least through August. If the new building isn't completed, the DNA could continue to lease the News building for all of 2006.

All together, the DNA will pay the city $3.3 million, enough to cover the interest expense on the certificate of participation, or COP financing, on the News building. The DNA also will pay all of the operating expenses while its lease runs, which amounts to about $10 per sf, or about $2.2 million a year.

The DNA also has informally agreed to keep 200 call center jobs in Denver, but not in the new building. City councilman Rick Garcia says he will ask the DNA to put that in writing for the length of the lease in the News building.

Councilwoman Kathleen MacKenzie voted against the lease agreement She says she worries the city is becoming "too cozy" with the media by approving the deal.