Denver projects proposed Alterra lease would generate $15.7 million

Denver projects that a proposed 12-year lease to Alterra Mountain Company at 101 W. Colfax Ave. would generate $15.7 million in rent, parking and operating-expense revenue, according to materials prepared for an Oct. 20 committee review. The proposal also includes two years of free parking and other potential public assistance.

The lease would cover about 64,654 square feet on parts of the building’s seventh and eighth floors from 2027 through 2038. After concessions, base rent would start at $22 per rentable square foot and increase by 50 cents annually; parking and operating expenses would be additional. Alterra would also receive one year of free rent. The presentation lists a $1.5 million early-termination fee.

Separately, the Denver Downtown Development Authority (DDDA) could lend Alterra up to $7 million at 2% interest for tenant improvements, furniture, fixtures, equipment and relocation. The loan could not exceed 50% of tenant-improvement costs. Under the proposed funding agreement between the city and the DDDA, the city would transfer funds held in trust to the authority; the city would not be a party to the loan with Alterra.

The presentation also lists up to $485,000 in performance-based incentives from Denver Economic Development & Opportunity, up to $500,000 for workforce training, and $3.9 million in proposed state tax credits, loans and grants. It does not specify the components or terms of the state assistance. These forms of assistance, like the lease and DDDA loan, are proposals, not confirmed awards or completed agreements.

As of Oct. 15, Legistar listed bill 26-1334, for the city-DDDA funding agreement, and bill 26-1337, for the lease, as committee action items scheduled for Oct. 20. The funding-agreement record and lease record did not show approval as of that date.