A proposed $12 million sale of Denver International Airport-owned land to a Greenwood Village developer could get a derailed Aurora master planned community back on track.
The sale, presented by DIA’s head of real estate Dan Poremba to Denver City Council’s business development committee Tuesday, is for a 628-acre parcel of DIA-owned property located in Aurora.
The land, commonly known as Section 11, is bounded by East 64th and East 56th avenues, west of Picadilly Road, and was originally slated for a project called Painted Prairie, according to documents filed with the city of Aurora.
Lion Land Ltd. LLC, owned by Chris Fellows – a principal on the original Painted Prairie development – made an unsolicited bid to purchase the land for $12 million, which is “above appraised value,” Poremba said.
The FAA has already approved the sale, Poremba said.
The land was under contract from 2004 to 2013, but economic conditions ultimately tanked the deal, Poremba said.
That effectively shelved Painted Prairie, a mixed-use community of townhomes and other residences, green spaces and commercial areas that was designed in collaboration with urban design firms Calthorpe Associates and Civitas, both of which are involved with the Stapleton master plan development.
Now, Poremba said, not only is the deal back on the table – it is necessary.
The original 1988 intergovernmental agreement between Adams County and Denver granting Denver the land to build DIA “requires DIA to make all reasonable efforts to sell this property since it’s not being used for aviation purposes,” Poremba told the committee.
The agreement required DIA to “dispose of its property interests in Section 11 ... no later than six months following commencement of aircraft operations.”
DIA opened for business in 1995.
The parcel needs a “significant amount” of infrastructure work, Poremba said, including sewer, water and drainage.
“The buyer is willing to take that on completely at their risk whereas most buyers will demand that ... some of those other contingencies be resolved prior to purchase.” Poremba said. “They feel they can solve certain issues related to this property that other buyers ... would require longer.”
District 5 Councilwoman Mary Beth Susman questioned why a buyer would want to take on a property with such substantial needs.
“Why does the buyer want to pay more than it’s worth with lots of complicated issues and do it quickly?” she asked. “Is there gold in them thar hills?”
Metro Denver’s hot residential market, the limited number of large land parcels available for residential development, the buyer’s familiarity with the property and good working relationship with the city of Aurora all are driving factors, Poremba said.
The area surrounding Section 11 is a hot ticket these days. The land is close to the new Gaylord Rockies Hotel, under construction on 80 acres north of East 64th Avenue, and not far from the 400-acre mixed-use development – including the new headquarters of Panasonic Enterprise Solutions – at the new Peña Boulevard and East 61st Avenue light rail station.
“After we close, we will start looking at any necessary modifications,” Fellows said. “Especially when you start looking at what impact the Peña station is going to have.”
But land use near DIA is a contentious issue. After years of fighting, Denver and Adams County this year reached an agreement that would allow commercial development on DIA property.
The original 1988 IGA prohibited such development.
Denver and Adams County voters both will need to approve the arrangement – listed on the November ballot as question 1A – since it pays Adams County and its cities, including Aurora, $10 million from Denver’s coffers upfront, and splits new local tax revenue from development on up to 1,500 acres.
Poremba said the land doesn’t fall under the 1A revenue-sharing deal since the sale is required by the original IGA. And the sale’s proximity to the November election is “coincidental.”
Aurora city attorney Michael Hyman agreed. “It looks to me like Denver is cleaning up some loose ends under the 1988 IGA prior to the election. I’m inclined to see the proposed sale as nothing more than just that.”
For Painted Prairie to get off the ground, a few additional parcels owned by the Denver Water Board and another private company need to be acquired, Fellows said.
Fellows says he has several financial partners but declined to name them.
