Denver to buy downtown Denver Post building for $88.5M
The city of Denver is facing criticism for considering an expensive proposal to purchase the former Denver Post building for nearly $90 million, despite being in the midst of a financial crisis.
The purchase will be discussed by the Finance and Governance Committee of the City Council next week.
Currently, the city already rents floors in the 11-story building, which offers about 304,000 square feet of space and a parking garage for 635 vehicles. The city currently occupies about 145,000 square feet on five floors and pays approximately $5 million in annual lease payments for half of the building.
The proposal suggests that the city needs additional space for the courts, with a projected need for over 171,000 square feet by 2030.
Proponents of the purchase argue that the building's proximity to other municipal buildings and existing judicial facilities makes it strategically advantageous for meeting future court requirements. They also highlight the existing infrastructure and security systems in place at the building. Additionally, once city departments vacate the Post building after the refurbishment of the Webb building, it could potentially house non-profits providing judicial advocate services and rental assistance programs.
However, the building is currently under a master lease held by DP Media Network, LLC until October 2029. The city will receive rent payments from the LLC, with the first year amounting to $7,794,602. This revenue is intended to help cover the financing costs of the building until 2029.
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Critics argue that the city's decision to purchase the building is questionable, given its current financial crisis. They question whether it is a prudent use of taxpayer money, especially considering the ongoing lease payments and the existing lease agreement with the LLC.
Furthermore, concerns are raised about the city's ability to fully utilize the building after 2029 and generate revenue through public access paid parking.
The proposal to purchase the Denver Post building will be closely scrutinized by taxpayers and city officials alike.