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Massive redevelopment around Ball Arena could deliver “shock of energy” to downtown Denver

A massive redevelopment project surrounding Ball Arena that would transform downtown Denver over the next three decades by adding thousands of new homes, commercial property and open space received approval Wednesday from a key city board.

The plan also would guarantee the Denver Nuggets and Colorado Avalanche won’t leave any time soon because the city’s approval hinges on a promise to keep the two pro teams playing at the downtown arena.

The proposed development would include up to 6,000 new housing units with 18% of those qualifying as affordable housing, a new city recreation center, retail space, a hotel and a signature park with walking and biking trails on the 70 acres surrounding Ball Arena adjacent to Denver’s downtown.

The plan would include at least two multi-story towers, although their exact height and size are yet to be determined.

The project is being proposed by Kroenke Sports and Entertainment — the company that owns the Nuggets and Avalanche — and it would largely replace an area that now is mostly parking lots. So far, there has not been a discussion about building a new arena; the existing facility opened in 1999.

The development at 1000 Chopper Circle would “stitch together” the city’s three major sports venues — Empower Field at Mile High, Coors Field and Ball Arena — while also connecting downtown neighborhoods such as Sun Valley, Jefferson Park and Lower Downtown that now are split by busy streets, railroad tracks and the Platte River, according to a vision plan on the Kroenke Sports and Entertainment website.

Elitch Gardens is not included in the zoning request or development plans. The proposed River Mile development, which would replace the amusement park and its surrounding parking lots, is a separate transformational project.

Tony Lechuga, a senior city planner, said the Ball Arena project would bring a “shock of energy” to downtown, which has seen a decline in the number of people who commute to offices and then stay for dining, shopping and entertainment since the COVID-19 pandemic changed work habits.

“It’s huge,” said Lechuga, who has led the city’s negotiations with Kroenke over the development plans. “This could be absolutely transformational to the city and downtown as we know it.”

The city’s Planning Board approved the zoning changes, which move the property away from legacy zoning codes into two more updated zoning districts, Lechuga said.

The board approved one section to be classified as a center district, which was created with the idea of building a modern downtown. That would include two to three blocks of transit stations, the arena itself, Interstate 25 and Speer Boulevard.

The other area would be rezoned to a transition district that would limit building heights similar to what is allowed in the LoDo neighborhood. That zone would be the south end of the property along Auraria Parkway between Speer and Ninth Street, and between Auraria and Chopper Circle.

The Denver City Council and Mayor Mike Johnston must approve the zoning changes before work can start. The rezoning request next will go to the council’s Platte River committee and a public hearing before the full council is tentatively set for October.

The Kroenkes own 80% of the property included in the plans, but the Auraria Higher Education Center, Regional Transportation District and Xcel Energy also have interest in the land. Kroenke has been negotiating with the city for two years on how the development will look and how the city will protect affordability, cultural interests and coveted views of the mountains, the South Platte River and downtown.

The Kroenke family has told city planners it will ask to create new metropolitan districts, which could assess taxes to pay for infrastructure such as roads and sewers.

Community agreements

The negotiations over the development plan have included a community group that represents surrounding neighborhoods along with housing and transportation advocates to receive their input on what they would like to see included.

The development would be built in phases, with the first phase mostly involving commercial and entertainment space around the arena, said Matt Mahoney, Kroenke Sports and Entertainment’s senior vice president of development. There would be some rental housing in those buildings and the company would make sure 18% of that housing would be considered affordable, he said.

It’s not yet clear whether the development would include parking garages to make up for some of the spaces lost around the arena.

As part of the deal, city planners are working on a community development agreement that would allow Kroenke Sports and Entertainment to build taller structures as long as they meet certain provisions laid out by planners. If approved, the new zoning code would restrict towers to either five stories or 70 feet tall unless those provisions are met. Those provisions include the 18% affordable housing component as well as an agreement to build a new Denver recreation center, Lechuga said.

“What that means is someone could build a larger tower, but the taller the tower, the more affordable housing they have to provide,” he said.

While specific design plans have not been finalized, there was discussion before the Planning Board on Wednesday that indicates Kroenke is considering at least two towers with up to 300 units on site that could reach 30 stories each.

The deal also will include a community benefit agreement that will mirror the community development agreement, but could have other components such as a requirement to build a daycare center or an assurance that the community’s Indigenous roots will be honored and respected.

Neither of those agreements have been finalized, but planners said they should be by the time the City Council considers the zoning change.

The plan has support from surrounding neighborhood organizations as well as the Denver Economic Development Council, the Denver Metro Chamber of Commerce and other business groups.

“The future of our city”

However, discussion at Wednesday’s meeting indicated some people in surrounding neighborhoods question whether Kroenke Sports and Entertainment is serious about building housing and how affordable it will be if it is built.

The city also is asking for an exemption that would allow Kroenke to build taller structures that could potentially block views of the Rocky Mountains, the South Platte, downtown or the Tivoli building on the Auraria Campus.

The old rules, known as a view plane, already are ineffective, Lechuga said.

The origin point that establishes the view plane for the Rocky Mountains is where an earlier city hall was located at 14th and Larimer streets. But views already are blocked because the Auraria Campus is state-owned and not obligated to follow city building codes. So campus buildings already obstruct views, he said.

The city has design standard guidelines that it can use to protect those views, he said.

Chris Shears, principal at the Shears, Adkins, Rockmore architecture firm, said the overall development will incorporate plans for the Auraria Campus, downtown and other areas.

“We have a clear picture of the future of our city and that’s pretty exciting,” Shears said.

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Originally Published: July 18, 2024 at 6:00 a.m.

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