A five-party funding arrangement is to be considered by Denver City Council that would eventually allow some 2,800 new homes to be built on the former Stapleton International Airport property, which was decommissioned in the mid-1990s.

The Stapleton “Five Parties” (City and County of Denver, Denver Urban Renewal Authority, Denver Public Schools, Forest City and Park Creek Metropolitan District) have agreed on an arrangement to fund and build an additional school, fire station and other infrastructure at Stapleton.

A series of resolutions or ordinances sets up the funding arrangements. Those include a funding agreement between the city and the Park Creek Metropolitan District for the design and construction of a bridge on the final span of Central Park Boulevard over Sand Creek for a maximum cost of $8.4 million using city funds.

Another agreement between the city and the Denver Urban Renewal Authority would see the authority use future tax increment revenue (in 2025) to repay the city for the bridge’s construction, which will improve north-south connectivity in the Stapleton area.

The North Fire Station reimbursement agreement between the city, urban renewal authority and Denver Public Schools would have the school district issue certificates of participation (COPs) to help the city pay for the fire station, to be built in the vicinity of 50th Avenue and Central Park Boulevard. DPS will place $9.4 million of COP proceeds in an account with a trustee to reimburse the city for advances for the actual development costs of the fire station, which will improve emergency response times to Stapleton neighborhoods north of I-70.

A DPS/city post-election bond and mill levy agreement would use part of the Stapleton tax increment funding attributable to last year’s DPS mill levy increase to help build a new elementary school at Stapleton to meet future student population demands.

DPS Chief Financial Officer and former Colorado House Speaker Mark Ferrandino said existing schools in Stapleton are at or over capacity.

“We’ve had more families with kids decide they want to live at Stapleton than we originally thought,” he explained. “We thought we’d be good with the five elementary schools we have now, but we need seven.”

Ferrandino said the district expects to need the seventh school by the 2021-22 school year and may have to ask voters for another mill levy hike to pay for that school and possibly others.

Forest City, Stapleton’s developer, will apply all acquisition proceeds from the DPS site to repayment of grading and drainage. Additionally, Forest City will impose home builder fees to ensure $12.5  million is available to pay for open space.

Stapleton success faster, better than expected

At a recent Council finance and governance committee meeting, Council members were told that since 2001, the 4,700-acre Stapleton site had become home to 23,500 residents in more than 8,000 residential units. Over 1,000 acres of parks and open space were established, more than 10 million square feet of commercial development had occurred, which resulted in over $540 million in annual taxable sales, $900 million in local and regional infrastructure had been constructed and over $4 billion in property value created.

Laura Brudzynski in the city’s Office of Economic Development noted Forest City had already built some affordable housing at Stapleton, “and they plan to add more to get to 10 percent at build out. We believe they’re on track.”

Councilwoman Robin Kniech added Forest City was not required to build a certain amount of affordable housing compared to market housing, “but I’m glad to hear they’re looking to meet their goal at build out.”

Councilman Chris Herndon, whose district includes Stapleton, said the redevelopment success at the former airport site has been more than the city expected, and noted the single fire station now present at Stapleton is not enough to meet a standard four-minute response time for emergency responders.

“We can’t overlook the safety component for our residents out there,” he added. “And I’m one of them.”

Councilman Rafael Espinoza said he had several concerns about the five-party arrangement, but was pleased that all his questions had been answered.

“I’m impressed with the number of players involved and the positive outcome we have now,” he stated.

Kniech noted the agreements will also reduce the number of possible capital improvement projects to fund in this fall’s general obligation bond issue by two.