The Denver City Council on Tuesday approved the $88.5 million purchase of the former Denver Post building in downtown.

The building at 101 W. Colfax Avenue last sold for $93.4 million in 2006, according to real estate records.

Officials said the purchase is necessary, as the city needs more courtroom spaces by 2023.

The city, which began leasing space from the owner of the Denver Post back in 2016, currently occupies 50%of the 101 W. Colfax building. The city pays about $5 million annually.

The council postponed Tuesday’s vote for the purchase two weeks ago, citing cost concerns and the need for more information.

Purchasing the property outright provides additional office and court space to support judicial needs based on a 2020 masterplan and allows for new city services in the future, city officials said.

Denver Director of Real Estate Lisa Lumley said the city intends to close the sale either at the end of March or the first weekend in April. The Denver Post is still obligated to pay at least $7.8 million for the remainder of the lease, which expires in 2029, Lumley said.

Councilmember Kevin Flynn said the purchase is “financing based” and that councilmembers should vote “yes” so that the financing agreement can be evaluated down the line.

The city would essentially be paying itself by purchasing the building through mortgage payments until the Denver Post’s lease is up, according to Councilmember Chris Hinds.

The building opened as the joint headquarters of the Denver Post and Rocky Mountain News before the Rocky Mountain News was closed in 2009. In 2018, the Denver Post moved its newsroom and other operations out of the building to its printing plant in Adams County.