Denver committee advances Alterra lease with $15.7 million revenue projection
The proposed 12-year deal covers 64,654 square feet and includes a possible $7 million downtown authority loan; City Council is scheduled to consider it Nov. 2.
Published at
A Denver committee advanced a proposed 12-year lease of city-owned space at 101 W. Colfax Ave. to Alterra Mountain Company on Oct. 20, moving the lease and a related funding agreement toward City Council consideration. The city estimates the lease would generate $15.7 million in rent, parking and operating-expense payments, according to materials prepared for the committee.
The Governance and Intergovernmental Relations Committee approved Resolution 26-1337 and Council Bill 26-1334 for filing in a block, with six votes in favor, none opposed and one member absent, the committee minutes show. The action is not final City Council approval.
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 receive one year of free rent and two years of free parking. The proposal lists a $1.5 million early-termination fee if the company leaves at the end of year five.
Under the proposed city-Downtown Denver Development Authority funding agreement, the authority 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. The city would transfer funds held in trust to the authority, but 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. These are proposed forms of assistance, not confirmed awards.
During the hearing, committee members asked for more detail about the revenue estimate, discounted parking, comparable lease terms and the building’s cash flow, including when it might cover its costs. Staff said they would provide parking figures, lease comparisons and an updated cash-flow analysis. Alterra’s representative said 275 employees would move downtown and the company had committed to hiring 106 more; a city representative described grant calculations based on 275 retained jobs and 59 new jobs. The hearing did not clarify whether the employment figures use different measures, the committee video shows.
The proposals were scheduled for Mayor-Council consideration on Oct. 27 and City Council consideration on Nov. 2.