The fate of Denver’s downtown has been an ongoing concern for city officials and business owners alike since the pandemic-forced shutdown sent office vacancy rates and retail revenue plummeting more than five years ago.
Some big steps, like the face-lift of the 16th Street mall, and smaller steps, such as the planned conversion of an office building into an apartments, have been taken to inject new life into downtown.
The latest effort, by the Denver Downtown Development Authority, to dole out $570 million in voter-approved funds is the biggest swing yet. This year alone, the city has committed more than $160 million across 13 projects aimed at reshaping downtown.
This means visitors and residents downtown can expect to see more cafes and ice cream shops, expanded retail, upgraded parks and buildings, and spaces designed to encourage people to linger, explore and return, if proposals submitted to the DDA are approved.
Denver’s existing DDA was established in 2008 and allowed the city to generate revenue from a portion of the property and sales taxes collected in the area of Union Station and Market Street Station.
Last year, voters approved additional borrowing authority of up to $570 million, allowing the city to fund projects.
The DDA is funded primarily through Tax Increment Financing, which is generated by increases in sales and property tax revenues within the DDA boundaries.
The DDA’s development zone generally encompasses most of downtown, stretching from 21st Street to Speer Boulevard to Logan Street and from Union Station to Civic Center Park.
“We’ve had over 80 applications already this year, and that’s just such a huge amount, and it’s been so gratifying to see all the interest in our downtown core and just the excitement that’s out there,” said Laura Swartz, the city’s Communications Director for the Department of Finance.
Swartz said the city oversees the full application process for the DDA, including collecting submissions, conducting all vetting of the applications and leading community engagement.
The Department of Finance is also one of the agencies that staffs the DDA, and they collaborate with several other city departments, including the Denver Economic Development & opportunity Department and Denver Arts & Venues.
In its pilot year, Swartz said the DDA originally expected to run two funding award cycles, one in the summer and one in the winter.
However, because of strong interest, the program completed four funding award cycles within the year.
As of Dec. 9, over 80 applications have been submitted for DDA funding, according to documents obtained from a city public records request.
Application submissions ranged from public art activations, business incentives, building revitalizations and restaurant openings to business expansions within the DDA boundaries, including Convivio Café eyeing a downtown spot for a potential second brick-and-mortar location.
While many applications focused on business growth and physical improvements, others emphasized the preservation of cultural heritage, most notably Sakura Square.
The application highlighted plans for the redevelopment of the Sakura Square Temple and Cultural Community Center,19th and Lawrence streets, an effort aimed at strengthening the site’s role as a cultural touchstone for the community.
“Sakura Square is the last remaining block of Denver’s historic Japantown and one of downtown’s most important cultural anchors,” said Nozomu Tim Higashide, CEO of Sakura Square, in an email statement regarding their DDA application.
“Our proposed redevelopment would reshape the block into a modern cultural, residential, and public destination that enhances downtown’s vibrancy and strengthens Denver’s collective identity. Central to this effort is protecting elements that already make Sakura Square so meaningful — the Tri-State/Denver Buddhist Temple, legacy businesses like Pacific Mercantile, and the community organizations rooted here.”
Higashide said the DDA investment would be a critical catalyst that would allow the project, and its long-term community benefits, to move forward.
Swartz said there are about 25 applications currently in review, while about 13 projects are underway, guided by a Plan of Development.
The city conducted surveys of downtown residents and visitors to determine how Denverites would like to see this money spent and used those findings to create the plan, which was adopted by Denver City Council on Dec. 9, 2024.
Since March, the DDA has awarded $166 million in funding, including $68 million in redevelopment opportunities, $46 million in new housing, $42 million in parks and public spaces, $6.1 million in business support and $3.8 million in downtown safety.
In early August, Milk Tea People founders Kevin Ung and Timothy Gardner announced they had received a $640,000 DDA loan to support their expansion into a larger space.
“When we first started, our commitment was simple: to serve this community and the people who make it so special. That promise has never wavered, and this expansion will allow us to double down on that commitment,” they said in a news release.
Milk Tea People’s DDA application said the popular tea shop will expand and relocate to a storefront along 16th Street, according to documents obtained through a public records request. The move is expected to create more jobs, add vibrancy to downtown and increase foot traffic.
A few other projects currently underway through DDA funding include $4.3 million for a new retail space for Green Spaces Market, $400,000 to renovate space for the Denver Immersive Repertory Theater, $17 million toward converting the historic Symes Building into 116 units of housing with updated retail and a new patio, $30 million for improvements to Civic Center Park and $7 million to reimagine the McNichols Building.
In addition, earlier this month, the Denver City Council voted unanimously to have the DDA pay $37 million to acquire the 350,000-square-foot Denver Pavilions at 500 16th St, plus $23 million for the two parking lots on both sides of Glenarm Place at the Denver Pavilions block on 15th Street, creating opportunities for mixed-use private redevelopment.
An additional $8 million is set aside for mall renovations and lease incentives.
Roughly 48 applications were declined for DDA funding, according to Swartz.
“Some applications were ineligible for DDA funding because they were not located at sites within the DDA’s geographic boundary (i.e., the downtown core). Others were duplicate applications submitted,” Swartz said.
“The primary reason for not selecting applications is that, with limited resources, the DDA must select the projects that are the best aligned with the criteria in the adopted Plan of Development, that are the most likely to come to fruition, and that will have a transformative impact on Downtown Denver.”
Applications are still being considered, but applications for projects in the Arts, Culture, and Activation category are temporarily on hold.
Swartz said this pause came after realizing that many proposals, while strong in concept, lacked feasible sites or the necessary property-owner approvals.
As a result, the city and DDA are revising the application process to give clearer guidance on eligible sites and requirements, with plans to reopen the category in early 2026.
Looking ahead, no additional project announcements are expected for the remainder of the year, Swartz said.
Swartz said that the DDA will hold a board meeting on Dec.17 as an annual wrap-up, during which the board will approve next year’s budget, review accomplishments from the past year and refine goals and programs based on applicant feedback.
The DDA is overseen by a seven-member board, and are appointed by the Mayor for four-year terms.
The board includes the president of the Denver City Council, Amanda Sandoval, and six members who are residents, landowners or business tenants within the boundaries of the DDA.
In 2026, the DDA plans to streamline operations, focus on awarded projects, continue funding projects across various investment areas and open applications for two expiring board seats.
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