Despite the spotlight shone on the 16th Street Mall and its nearly 300 businesses working through heavy construction, vacancies and desolate stores plague pockets of downtown Denver.

Denver’s new mayor wants to all change that – and fast.   

“Downtown Denver faces among the highest commercial vacancy rates of any city in the nation,” Mayor Mike Johnston said in a press release, adding that reversing the trend will require “a coordinated effort to revitalize” both the central business and neighborhood districts.

Johnston laid out his proposal to revitalize downtown when he unveiled his budget on Thursday. In particular, he plans to spend $58 million from his proposed $1.74 billion spending plan for next year.

Curbing homelessness is key

Johnston said the key to “downtown reactivation” lies directly in tackling homelessness.

“The first step to revitalizing downtown is helping people experiencing homelessness get access to housing and then permanently closing encampments,” he said, “while simultaneously working shoulder-to-shoulder with businesses and neighborhoods to reactivate these spaces and make downtown a vibrant neighborhood that is the economic, residential, and cultural center of our city.”

Downtown paints two contrasting cities: One is vibrant, thriving, drawing people from near and far who shop at the almost 300 businesses – some 60% locally owned – along the 1.25 mile outdoor mall from Broadway to Union Station. The other city is crime-ridden, where homelessness is rampant and residents, business owners and visitors encounter open-air drug use and panhandling and where they need to navigate around feces or used needles on the streets.

The competing assessments of the city’s famous 16th Street Mall are a microcosm of the debate over whether Denver is decaying or thriving, an introspection that has been occurring in the last few years. At the practical level, the stakes for Denver’s center city are large: It supports more than 1,800 jobs and generates more than $155 million in income for workers and nearly $380 million in sales for businesses, according to city data.

But the mall also encapsulates what the city envisions itself to be – hip, chic, cultured, a gem in a metropolis of more than three million people, but also a safe and short getaway for its residents, including families with young children.

Johnson, who vowed to end homelessness in his first term, has set out to house 2,000 homeless people over the next two years. Already, the city intends to spend about $50 million on his homeless initiatives through the rest of the year, aiming mostly at building micro-communities.

A complete mall

Of the $58 million for downtown revitalization, the single biggest spending item – $21.5 million – focuses on? completing the 16th Street Mall with an expanded tree canopy and new pedestrian spaces?.

The mall remains the focal point of downtown’s business district, and it is undergoing a major facelift that has inhibited foot and bus traffic. Some store owners lamented that the project is ill-timed and that, while it would benefit businesses once it is completed, it forces shops anew into a state of existential crisis. To enjoy the project’s full benefits, they first have to survive – again, following the economic crunch of the pandemic.

Others, however, remained optimistic. One business owner earlier told The Denver Gazette that the convention center, for example, is “coming back roaring.”

The city began a $149 million renovation project in April 2022 to build improvements in safety, mobility and fix deteriorating infrastructure on the mall. In the meantime, the construction has taken away restaurant patios, accessible walkways and the efficiency of RTD free shuttles that used to move some 3.6 million people every year.

It is expected to run through 2024, now potentially taking over $20 million more.

New and existing

Johnston wants to earmark $1 million? to help stabilize businesses affected by construction on the mall?. Some businesses have found trouble gaining customers during the construction. 

Another budget item – $4.5 million – is? for “downtown activation.”

This activation, Johnston’s administration said, will help attract new businesses and visitors along and near the rejuvenated 16th Street and “increase investments into a clean and safe downtown.”  

A complete Convention Center

Johnston also plans to allocate $16.6 million? to “ensure the success of the downtown Convention Center in both operations and maintenance?.”

Like the 16th Street Mall renovation, the Colorado Convention center – only two blocks away – saw a hefty expansion budget in the past few years.

The $233 million expansion started in 2021 and looked to add 200,000 square feet of new space with a ballroom, pre-function space and rooftop terrace. It is set to finish later this year.

The Colorado Convention Center upgrades are expected to generate an additional $85 million in annual economic impact by bringing people into the area for events. 

Richard Scharf, President and CEO of VISIT DENVER, said Johnston’s focus on downtown will help boost the operation of the city’s hotels.

“The Downtown Lodger’s Tax generated by these travelers is on a record pace for the second straight year, and the outlook for business, convention and leisure travel through 2024 is equally optimistic,” he said.

A complete public transit

The mayor also wants to earmark $14.7 million? for public transit along Colfax Avenue, saying the money would allow the city to leverage $136 million in Federal Transit Authority funding for a bus rapid transit option.

The East Colfax rapid transit project was pitched in 2020 and is reaching the final design stages. It would build one dedicated bus lane in each direction, stretching Colfax from Broadway to Yosemite. It will also include new and enhanced transit stations, service amenities, improved pedestrian and bike connections, according to the city.

The idea is to create an easier way to get around the city, including the downtown region, directly affecting foot traffic and business.

“Downtown Denver represents the heart and soul of our city, and the meaningful investment in its vibrancy outlined in Mayor Johnston’s proposed budget demonstrates tremendous leadership and vision that could not come at a better or more important time,” Kourtny Garrett, president and CEO of the Downtown Denver Partnership, said.