Fairfax Land Swap Approved

Park Could Cost $1M or More; Developer To Chip In $650,000, Taxpayers To Foot The Rest

By Cara DeGette, GPHN Editor

Denver taxpayers could now be on the hook for $350,000 or more for a public park within a private development project on Fairfax Street.

The deal – approved Aug. 20 by the Denver City Council – is a sharp deviation from the city’s original rationale for promoting a controversial land swap deal that has created bitter rifts among Park Hill residents.

For nearly two years, Deputy Parks Director Scott Gilmore and other parks officials have repeatedly insisted the city has no money to build a park on city land at the former Xcel substation on the west side of Fairfax Street, between 28th and 29th avenues.

They, along with city Councilman Chris Herndon, have promoted the land swap deal as a way for the developer to foot the bill to build a small public park inside the Park Hill Commons residential and commercial project on the east side of the street. In exchange, the city would deed the former Xcel site to the developer.

Now, according to the council-approved contract, the developer, HM Capital, will chip in $650,000 to help build the park. City taxpayers will pony up the remainder of the costs. Denver Parks and Recreation will be responsible for design, construction, operation and maintenance of the park. The scheduled start date for construction is Fall, 2019.

During several hours of deliberations on Aug. 20, several city council members offered sharp criticism, as well as support. Councilman Rafael Espinoza called it a failure by city administrators to negotiate a better deal. “The math,” he said, “is in the developer’s favor.”

“Much was made of this being a gift, and it is … to the developer,” Espinoza said. “The developer is not going to build this park, but [he] could have … we could have gotten it all.”

‘How did that happen?’

In 2016, the city purchased the Xcel property for $50,000. However, the value of the land is estimated at closer to $1.5 million, which is the amount that Ben Maxwell, the principal of HM Capital, said he paid for a similar-sized property across the street.

Under the terms of the contract, Maxwell will take ownership of the former Xcel property for a future development. The public park will now be built across the street, in the middle of Maxwell’s Park Hill Commons Project.

During the council hearing, Gilmore, the deputy parks director, acknowledged that Maxwell’s payment of $650,000 will not cover the actual cost of building the park. The city, he said, will now pay the remainder.

During the meeting, Councilwoman Debbie Ortega asked Gilmore to clarify costs.

Initially, Gilmore had stated the costs for pocket parks generally ranges between $750,000 and $1 million.

“We have $650,000,” Ortega noted. “Who fills the gap?”

“As the parks department we have committed to fill in the gap,” Gilmore said. “It depends on what’s going to go into that park. We could do the park cheap, probably, and build the park for half million dollars. Or we could build the park that this community truly deserves. And then it might go to $800,000.”

Ortega then asked whether there is a high-dollar cap.

“You can’t really tell,” Gilmore said. “I would hope we don’t go over a million dollars but, um… you just don’t know what the final cost is going to be until you get those design documents and it goes out to bid and then the company gives us the cost of what it’s going to be to build that park.”

Gilmore did not say when his department will have an estimate on the final cost. However, Espinoza was not the only one to call it a bad deal for the city.

“The whole premise was that HM Capital was going to pay for the park,” said Tracey MacDermott, the chair of GPHC, Inc. “Now we find out not only did Ben Maxwell get a piece of property worth $1.5 million that he doesn’t have to pay for, and also, he no longer has  to fully pay for the park. How did that happen?

“Also, Scott Gilmore has consistently said the city has no money to build this park, and now they all of a sudden have hundreds of thousands to help pay for the park. Where is this money going to come from?”

Other council members, including Paul Kashmann, expressed criticism. Kashmann was particularly critical of the absence of city planners in any of the land swap or project discussions.

Half in support, half opposed

Though the council was being asked to vote specifically on the land swap deal, several members weighed in on the larger issues surrounding the development – most notably the lack of an affordable housing component in the Park Hill Commons project. Also at issue is the negative impact of gentrification in what has long been a diverse middle-class neighborhood.

During a public hearing before the vote, 29 people addressed the council – about half of them in favor of the land swap, and about half opposed.

Several praised Maxwell’s plans to improve the business block of Fairfax, which has been run down in recent years, with several empty storefronts. The entire east side of the street was demolished over a year ago pending the outcome of the land swap deal. Maxwell said that if the swap weren’t approved, he would scrap plans for any retail in the mixed-use development and convert the entire block to residential apartment dwellings and micro-units.

Jason Kleinhelter, who lives a block away, said he is weary of hearing gunshots in the neighborhood, and also of drug use. He has lived in his house since 2001, he said.

Several speakers, including Sandra Robnett, expressed concern that they would not feel welcome in a public park that is inside an upscale development project. Robnett, who is African-American and Latina, said she fears she will be targeted for police harassment. “We long-term residents should not live in fear of our new, non-ethnic neighbors,” she said.

Patricia Iwasaki, who has worked in Park Hill on sustainability and economic justice issues, said she was troubled by the city’s lack of transparency, as was Ali Larson, who lives nearby. Christine O’Connor termed it a “giveaway deal” that will benefit the developer, while neighbor Karen Williams called it “a great deal for the city.”

Tiffany Kampsnider, who spoke in support of the land swap, expressed hope that neighbors on both sides of the issue can reconcile their differences.

“I love this neighborhood and I just feel sad about what this has become: a racial issue in a neighborhood where neighbors are pitted against neighbors,” she said.

Hope to repair relationships

Several council members offered suggestions for how the Park Hill neighborhood could move forward.

At-large councilwoman Robin Kniech suggested that the developer consider offering “cultural competency training” to the employees of businesses  that open on the block.

Councilwoman Ortega expressed hope that the city and developer will work with the neighbors on finalizing the park design. The small park, about one-third of an acre, has already gone through at least five design iterations. Gilmore did not provide specifics, but he agreed that at least one member of the Park Hill community would be invited to serve on the design committee.

Ortega also said she views the experience as a “genuine opportunity” for the city, the developer and residents to “try to heal the wounds.”

“I am pleased that [the] parks and recreation [department] is committed to funding the rest of the park,” she said.

Maxwell, the developer, said he is eager to work with the community, and with GPHC, the Registered Neighborhood Association, to solicit businesses that are complementary to the neighborhood. For example, he said he is not interested in bringing in corporate chain stores, but rather locally-owned and operated companies.

“I regret this has turned into a fight over gentrification,” Maxwell said. “We came into this project with the idea that it would provide opportunities to live and work in the community.

“I hope we can do whatever we can to repair relationships.”

In the end, the council approved the land swap 12-0 on first reading, with Councilman Kashmann abstaining. Despite his criticism, Espinoza voted in favor of the deal. Three city council members did not offer any comments during hearing: Mary Beth Susman, Kendra Black, and Stacie Gilmore, who is the wife of Scott Gilmore.

For additional coverage about the Fairfax land swap deal, check out greaterparkhill.org/Fairfax.