Denver is a city at a crossroads—grappling with increasing regulation, housing affordability challenges, and a rapidly evolving urban core, all while experiencing major public and private reinvestment. In this Q&A, we spoke with Amy Hansen, real estate attorney and shareholder at Polsinelli—a leading voice in the business and development community—about how Colorado’s complex policy landscape is shaping the way business gets done in Denver.
1.Colorado has become of the most regulated states in the country. How have you seen that impact on your work and the overall ability to do business in Denver?
Our clients are certainly impacted by Colorado’s heightened and everchanging regulatory landscape. Businesses need predictability and that extends to local permits and approvals, including process and timeline. Uncertainty is bad for business. Moreover, the business community needs to have confidence that rules won’t change on them mid-project, and that they can secure the approvals necessary in a reasonable time frame. Mayor Johnston has made streamlining the development approvals process a priority, which is welcome news among many small businesses. However, Denver City Council recently adopted an ordinance banning new gas stations, making it retroactive. Landowners and developers had already invested significant time and capital on new locations, and a lawsuit is now pending challenging this ordinance. This kind of mid-stream change in the rules sends the wrong message to those looking to invest in our community.
2. The Downtown Denver Development Authority was recently renewed and its next iteration is beginning to ramp up. What does this tool represent for our city and, if executed to its fullest potential, what will it mean for downtown?
The renewal and extension of the Downtown Denver Development Authority (DDDA) is a tremendous opportunity for downtown, at a time when investment is greatly needed. It is expected that these DDDA dollars will draw significant private investment in our city center. The importance of downtown to Denver’s tax base can’t be overstated. Downtown Denver comprises only 1.8% of the land area of Denver, but 30% of the jobs in Denver are located downtown and an outsized portion of the city’s property tax and sales tax comes from downtown. The DDDA’s investment in downtown will help drive property tax and sales tax revenues that benefit all parts of our city.
3. We are in the midst of the legislative session in Colorado. What do you see as the most critical opportunities for our area in the year ahead in terms of policy?
We must continue to address housing in our state and should all realize that there is not any one change in the law that will be the silver bullet to fix this situation. Simply put we need more of the “missing middle” housing and we need a broad set of policies that support the production of housing that is attainably priced. There are two issues being considered in the current legislative session that could be part of the solution– construction defect litigation reform and “smart stair” legislation. Construction defect reform continues to be an elusive issue for our lawmakers and I am hopeful that this year we will make progress. Smart stair legislation would allow residential buildings up to five stories to be built with only one set of stairs (not two). This opens up small infill sites, that are not large enough to accommodate a building with two sets of stairs, to be developed with residential.
4. What would you tell someone in the industry who is looking to invest in downtown today?
This is a very exciting time for downtown Denver. The $150 million reimagining of 16th Street is wrapping up, and the result is beautiful. No other city in America is making that kind of investment in the public realm in its city center. The renewed and expanded DDDA is taking applications for development proposals, so that it can deploy $570 million into catalytic projects in downtown. And we have so much vibrancy as a city. For instance, the Michelin Guide came to Denver, which is something very few cities can boast. We have always been a great sports town, but things are better than ever in that arena. NBA championship, NBA and NHL MVPs in the same year, a rising young quarterback. And, we have a new women’s soccer team with a new stadium in the works. Denver was recently named one of the hottest job markets in the country. It is easy for business and civic leaders to get caught up in the work that remains, but there is also a lot to celebrate. We are seeing years of hard work pay off which is incredibly rewarding!
