Denver says if it can’t process construction permits in roughly 180 days, the city will refund developers’ fees

Denver Mayor Mike Johnston says the city will change the way it approves construction projects by revamping the permitting process to speed up and streamline reviews.

Under Johnston’s first-ever executive order, which was unveiled Monday afternoon, the new Denver Permitting Office will begin reviewing permit applications in mid-May with a promise to process applications in 180 days. If the one-stop shop fails to meet that threshold, developers may be able to recoup up to $10,000 in application fees.

In an interview with The Denver Post ahead of the announcement near Union Station, Johnston said that when he was campaigning for his position in 2023, he often heard complaints about the city’s permitting system, which for years has faced backlogs and delays in review cycles.

“People around the city said, ‘We love Denver and more and more, we don’t build here — or try to avoid building here — because it’s so difficult, so complicated and so slow that it raises costs,’ ” he said.

The new office, he hopes, will make Denver “the best place to do business as opposed to one of the most challenging.”

Johnston announced the changes at the Urban Egg, a new location for the breakfast and lunch eatery at 1550 Wewatta St. Randy Price, the owner of the restaurant, said it recently went through the city’s express permitting pilot program for the 16th Street Mall corridor to build its new location.

“This has been an unbelievable experience for transforming the process of permitting and getting us moving quickly,” Price said. “As an owner and a business founder, all you want to do is get in, get open, hire new staff members, contribute to (the) community and start producing tax revenue for the city.”

Currently, site development plans for large-scale housing and commercial projects pass through seven city departments and can take more than two years to process, according to a city news release summarizing the changes.

The new process will streamline permits from the Department of Community Planning and Development, the Department of Transportation and Infrastructure, Denver Parks and Recreation, the Fire Department, the Department of Housing Stability, the Department of Excise and Licenses, and Department of Public Health and Environment.

Construction permits are required for new buildings, buildouts and remodeling.

Applicants will also have a “project champion” at the city who helps them navigate the process, the release says.

The office, which will have an in-person counter open from 8 a.m. to 4 p.m. on weekdays, will be committed to answering any questions on permitting within two days.

If the city fails to meet its accountability standard of 180 days, developers can bring their application to a review board made up of department directors for all the relevant agencies. If that board can’t make a final decision on the permit within 30 days, the city will refund some or all of the applicant’s permitting fees, Johnston said.

“I have no desire to pay anybody back money. So that’s a good incentive for us to get it right,” Johnston said.

Morgan Cullen, the director of government affairs for the Home Builders Association of Metro Denver, said its task force has met with city officials and suggested improvements on permit reviews for several years.

In a statement, he said the association “is looking forward to reviewing the steps proposed … to streamline the review and permitting process. Improving permitting timelines is an important priority for HBA members that are actively building in Denver. The permitting process is a significant factor in the cost of building a home, and any improvements to that process will help our members better provide attainable housing in Denver.”

Johnston said this is the first time the city has ever committed to a specific timeframe for processing permits. The planning department long has had target review times depending on the type of permit or plan, but at times has missed the mark significantly amid backlogs.

The most recent figures on Denver Development Services’ public dashboard show permit approval times have averaged 256 days for major commercial projects, which include large multifamily residential buildings. Application approvals have averaged 355 days — nearly a year — for major residential projects, including new houses.