DENVER (KDVR) — The Denver Downtown Development Authority was joined by Denver Mayor Mike Johnston on 16th Street on Tuesday to announce that the board was well on its way to purchasing the Denver Pavilions.
The Denver Pavilions is a shopping district that takes up the two city blocks between 15th and 16th streets and between Welton and Tremont streets. On Tuesday afternoon, city leaders announced that the Denver Downtown Development Authority plans to purchase the site for $37 million.
Another $8 million in DDA funds has been made available for property improvements, leasing and redevelopment planning, according to a city release. The DDA intends to eventually sell The Pavilions to another entity to complete the new, mixed-use redevelopment vision for the site, the city added.
The DDA is a public entity using tax monies to support projects in the downtown area. Officials noted Tuesday that the DDA is not the city, but is a tool used to collect funds from within the central business district, which are then reinvested in the same area.
“The DDA will put a master plan together and bring in an international retail specialist to partner with us in restoring and enriching the Denver Pavilions as a retail, entertainment and engagement venue that will support and enhance the new housing that we are creating in downtown Denver,” said Doug Tisdale, DDA Board chief.
Tisdale said that the goal is to introduce the “Renaissance” of the Pavilions, rebirthing the area.
In May, city leaders announced they were rebranding Denver’s 16th Street Mall to just “16th Street,” the capstone to a $170 million renovation project. The goal was to shift public perception of the area to draw people back to a cleaner, safer and more modern downtown.
On Tuesday, city officials said that they are imagining the Denver Pavilions as an avenue to “rejuvenate the landscape of upper downtown.”
Mayor Mike Johnston said the Pavilions are an “incredibly important part” of the city, and will work as an anchor destination for the upper downtown area.
“This purchase represents more than a real estate transaction. It’s a bold commitment to restoring the vitality of our city center,” said Councilman Chris Hinds in a release sent by the city shortly after holding a press conference on 16th Street. “By bringing Denver Pavilions under public stewardship, the DDA can unlock private investment, activate ground-level uses, and preserve this pivotal block as a place where neighborhoods, commerce, and culture converge. As voters approved the DDA expansion and a $570 million investment pool to revitalize downtown without raising taxes, we have the means and the mandate to act decisively. The unanimous board vote signals that this is the kind of catalytic move that defines a city’s future.”
Right now, the Pavilions are plagued with vacant storefronts, although there is still a movie theater, bowling alley and a handful of restaurants and shops.
The DDA already purchased parking lots adjacent to the Pavilions for about $23 million. The DDA plans to continue developing the area and voiced plans to turn downtown commercial space into residential apartments.
“This is an incredibly exciting day,” Johnston said.
He spoke about Coloradans making memories at the Denver Pavilions, including having prom dinners at the mall, movies with a date and other classic activities.
“Our dream is that it remain another critical icon in the city for another 40 years,” Johnston said. “That it’s a place where another generation of Denverites come to their favorite retail shopping, or their favorite restaurant, or for a favorite date night. And today is a critical opportunity for that long-term investment.”
Johnston was questioned about the city’s budget and how the DDA’s purchase of the Denver Pavilions could contribute to the shortfall. He explained that the funds used by the DDA are not city funds and are not from the city’s general or capital funds. He stressed that the dollars used to purchase the Pavilions would not have been used for employee salaries.
Johnston said that the goal is for a “collaborative redevelopment” with the city and the DDA that could include a hotel, condos, adaptive reuse of the Pavilions site and more, but that in the end it will be an “anchor destination in upper downtown.”
Johnston said the goal is to make a spot similar to the Milk Market, Union Station and Larimer Square, in that it has opportunities that attract and keep both visitors and residents returning.
The DDA’s purchase of The Denver Pavilions is expected to be completed by the end of the year.
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