X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

(To read more on the debt and equity markets, click here.)

DENVER-Cherokee Development, which is cleaning up the former Gates Rubber Co. site on the west side of Broadway at Interstate 245, is seeking $85 million in tax increment financing to help offset infrastructure costs. When completed, the Cherokee site, one of the key high-density, transit-oriented developments in the metro area–and one of the largest infill sites near downtown Denver–is expected to have a completed value of more than $1 billion.

The idea behind a TIF is that it will create development that otherwise would not be built, generating taxes that otherwise would not exist. But the additional revenues beyond the TIF would flow to holders of bonds issued by the city, if it decides to go forward, not to Cherokee. The council is scheduled for a final hearing in February.

John Huggins, economic development director for Denver, tells GlobeSt.com that the $85 million, based on his analysis, is the appropriate amount. The TIF money will allow increased affordable housing opportunities, and will help bring more public art, plazas and open space to the project. The total infrastructure cost is estimated at $126.24 million.

The project is expected to generate more than $1 billion in private investment during the next 15 to 20 years and generate more than $16 million per year in incremental revenues by 2032. It also is expected to provide $1.5 million revenue stream for city services. In addition, the city will benefit from the developer’s “upside” potential as the development increases in value. Cherokee is cleaning up the property and will soon choose a vertical developer to actually construct buildings on the first phase of the land.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.