Webb, Sullivan Looking at Dahlia Square

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DENVER-Former Mayor Wellington E. Webb is considering redeveloping the former Dahlia Square shopping center in northeast Denver. The Denver Urban Renewal Authority recently issued requests for proposals for the center, which it is putting on the market with an asking price of $3.6 million. About $8 million in city and federal funds could potentially be available for the redevelopment.

In April, Webb formed a company with his brother Joe and Jim Sullivan, called Alliance Development Inc., which would redevelop urban projects. Earlier this year, Sullivan told GlobeSt.com that he would consider redeveloping Dahlia Square more as a community service than as a way to make money.

“This is real preliminary,” Webb’s spokeswoman tells GlobeSt.com. “[Webb] and Sullivan are looking at some projects together, including Dahlia Square. They want to see if the numbers make sense.”

She says the city requires that former mayors not do any business with the city for six months after they leave office. “It’s now been almost two years since he left office,” she says.

John Huggins, economic development director for Denver, tells GlobeSt.com that if Webb decides to apply, he will be treated like any other developer and won’t get any special treatment. Webb’s spokeswoman says that is exactly what the former mayor wants.

Proposals must be submitted to DURA by Aug. 8. DURA wants to have a development agreement by Nov. 1, with whoever is selected. In addition to Webb’s group, other developers that have shown preliminary interest include Philip investment Group; Perry Rose Development, headed by local developer Chuck Perry and East Coast-based Jonathan Rose; Inner City Development, and Brownfield Partners. A non-profit arm of Brownfield Partners is cleaning up the landfill under the shopping center. Proposals must include 150 units of affordable single-family and senior housing, a health clinic and 15,000 sf of retail.