Denver downtown board approves proposed $240,000 loan for restaurant at former Illegal Pete’s site
The DDDA board approved a proposed 3% loan for the 16th Street project, but no final agreement, restaurant name or required City Council action had been verified by Aug. 15.
The Denver Downtown Development Authority board approved a resolution authorizing a proposed loan of up to $240,000 for tenant improvements and furniture, fixtures and equipment at the former Illegal Pete’s location at 1530 16th St. A final loan agreement and any required City Council action remained outstanding as of Aug. 15.
The proposed loan would support a 2,850-square-foot full-service restaurant and bar in the Sugar Building. Project materials estimate the restaurant at $1.2 million, making the DDDA request equal to 20% of the projected cost, the DDDA resolution and project terms show.
The applicant is identified as Paired Hospitality LLC or an affiliate. The documents do not name the restaurant or establish a final concept beyond describing it as a full-service restaurant and bar. The project schedule calls for permit submission in summer 2026, construction in fall and winter 2026-27, and a targeted opening in the first quarter of 2027.
The proposed loan would carry 3% interest over seven years, including 12 months of capitalized interest followed by six years of full amortization. The DDDA would not release funds until the applicant had invested $500,000 in equity. Disbursements would reimburse documented expenses after the submission of invoices, proof of payment and lien waivers. The money would be limited to tenant improvements and furniture, fixtures and equipment.
The financing would place the DDDA debt in a senior position and require a corporate guarantee from Paired Hospitality or Beckon Group. The resolution does not identify additional project collateral and says the agreement cannot create a lien or encumbrance on the 1530 16th Street property.
The board adopted the resolution July 22 and authorized its chair, in consultation with city and DDDA officials, to negotiate agreements with the applicant and any guarantor. Those agreements would require mutual execution and later ratification by the DDDA board.
The board also approved a petition to add the property to the DDDA boundaries and directed the petition and resolution to Denver City Council. Council approval would amend the authority’s boundary ordinance and make the property subject to future taxes imposed for the DDDA’s use and benefit. The resolution says a financing agreement could also require separate council approval if the city becomes a party.
A review of Denver’s DDDA board records and the city’s Legistar records did not locate, by Aug. 15, a subsequent City Council approval, final loan agreement, executed guarantee or record of disbursed funds.
The board’s action approved a proposed financing framework, not a completed loan closing. The opening date, final restaurant identity and construction progress remain subject to future agreements and development work.