From: "Friends of Transit" Subject: New light-rail stations ripe for adjacent development Date: Sunday, December 29, 2002 4:16 PM Here is a copy of the text of a recent article in the Denver Business Journal that demonstrates that properties adjacent to the light-rail stations are ripe for development. Before long, we will see similar stories in the Greater Phoenix Area as our own light rail develops." * * * New light-rail stations ripe for adjacent development Six sites along T-REX line already eyed for mixed-use projects Erin Johansen Denver Business Journal ------------------------------------------------------------ The massive T-REX project that will provide metro Denver with a wider highway and a new light-rail line also promises to stimulate billions in real estate development over the next several years. Much of the development will be in the form of dense, mixed-used "Transit Oriented Development," or TOD, expected to proliferate near the new light-rail stations. And while many of the 14 new stations will have some level of development, Southeast Corridor Constructors - which is handling the T-REX project - and other key stakeholders have identified six stations they believe will especially see a stepped-up level of development. The stations - which are along I-25 at Broadway, University Avenue, Colorado Boulevard, Belleview Avenue, Arapahoe Road and Lincoln Avenue - all have characteristics that lend themselves to TOD, said Jerry Jaramillo, TOD specialist with Southeast Corridor Constructors and director of business development for Kiewit Construction Co. Southeast Corridor Constructors is a joint venture between Kiewit and Parsons Transportation created to work on the T-REX project. The $1.67 billion T-REX project began last summer and is to be complete in 2006. According to Jaramillo, four fundamental elements make TOD at light-rail stations more likely. At least several of these elements are present at the six sites. First, a master developer should be identified. Second, the land surrounding the station should be controlled by that master developer. Third, there should be an active master plan and, fourth, the development should have the support of the local government and other affected stakeholders. Because the T-REX team is starting to plan - and, in some cases, build - parking structures, light-rail stations and other improvements along the line, now is the time to negotiate with developers who are interested in building TOD near light-rail stations. According to Amy Ford, a spokeswoman for T-REX, the project's design is about 70 percent complete. The project team is in discussions with developers of several sites and has already negotiated some changes that will make future development more user-friendly. Broadway Station In December 2001, Cherokee Denver LLC purchased the 50-acre former Gates Rubber Factory site west of Broadway and I-25. The site is adjacent to the current light-rail station. T-REX and Cherokee Denver have negotiated a change to the placement of a flyover bridge at the site to better accommodate development. Cherokee will foot the bill. Cherokee Denver is the master developer of the site and is working on a master plan, which now includes 2 million square feet of office development, 4,000 residential units, 250,000 square feet of retail space and a hotel. "The market will play a big role in how this gets built out," said Steve Moyski, president of Cherokee Denver. Moyski said the development will likely include restaurants and "convenience" businesses such as a dry cleaner, coffee shop and video rental store. "People now park and ride the train downtown and eat there. They could park, eat and then ride the train," Moyski said. He said the project will cost "a billion dollars plus or minus" and probably won't be built by a single developer. It could take as long as 15 years for build-out. The city of Denver is working on a new zoning category specifically for TOD. This "transit mixed use," or TMU designation, will go before the City Council for a final reading Nov. 4. "The adoption is imminent," said Ellen Ittelson, director of planning services for Denver. Cherokee Denver will hold its third round of meetings to gather neighborhood feedback on the project Tuesday, Oct. 8. University Station Unlike the Broadway Station, the University Station does not have a single landowner. RTD and few private owners of adjacent housing have control of the four acres that could be developed around the station. Nonetheless, the location, with its proximity to the University of Denver, would be a good place for retail and housing, Jaramillo said. "It's lagging a little bit," he said. Colorado Station The city of Denver and other stakeholders have identified a 12-acre parcel near the Colorado Boulevard light-rail stop that could be developed as TOD. In fact, the city has worked on a master plan for this parcel, as has nearby landowner, WilsonThorn Properties, formerly known as Mile High Properties. WilsonThorn owns the adjacent Colorado Center, an office and retail development. "The most difficult part is that there are a lot of owners," said CEO George Thorn. "TOD can happen at any stop, but one of the difficulties is land assemblage. Nobody has been able to assemble all the pieces. We have a lot of interest in putting the site together. It's a real natural." Thorn said he has talked to owners of the parcel about acquiring their property and will continue to do so. Belleview Station Approximately 47 acres around the future Belleview Station - on Mountain View Golf Course - are owned by Dutch Bansbach and his relatives. Bansbach is working as master developer on that site and is putting together a plan that will include residential, retail and office development and a hotel. The golf course will continue to operate for two more years, Bansbach said. Bansbach, founder of Columbine Realty, said construction will probably not start until 2006. Arapahoe Station The city of Greenwood Village has control of about 2.5 acres around the Arapahoe Station site and is working on a master plan for development. "The program calls for 1.5 million square feet of office development, 250,000 square feet of retail, 400 to 600 residential units," said George Weaver, director of community development for Greenwood Village. A 400- to 500-room hotel and conference center, and a performing arts building may also be built at the site. "It's going to take eight or 15 or 20 years to build out, depending on the market," Weaver said. Lincoln Station The Bradbury family owns 46 acres adjacent to where the final light-rail stop on the southeast line will be built. Bradbury Properties Inc. intends to develop TOD there and has been working with T-REX on placement of its parking structure. The vision for the development includes at least 800 for-sale and rental apartments, up to 200,000 square feet of retail development and up to 1 million square feet of office space, Bradbury principal Gary Woods said earlier this year. Industry insiders have said Lowe Enterprises will develop the site for Bradbury, but Woods did not return a call about the status of the project. Copyright(c) American City Business Journals Inc. All rights reserved. You can view this article on the web at: http://denver.bizjournals.com/denver/stories/2002/10/07/story7.html