Colorado cities capitalize on base closing

The closing of Lowry Air Force Base in Colorado has presented a unique opportunity for two cities to work together. Because the base crosses the city limits of Denver and Aurora, Colo., the cities have joined forces, creating the Lowry Redevelopment Agency (LRA) to transform the base into a mixed-use community with residential, commercial and educational spaces.

Lowry Air Force Base is located 15 minutes from downtown Denver. Approximately 88 percent of the base is located within the city limits, and the remainder is situated in Aurora, next to that city’s most historic neighborhoods. The base closing was announced in April 1991; in August 1994, Denver and Aurora created LRA, an independent, quasi-public agency, to acquire the property from the Air Force and oversee redevelopment. In April 1995, the Denver and Aurora city councils adopted the Lowry Master Plan. BRW, a unit of Dames & Moore, Los Angeles, is serving as lead engineering consultant for the redevelopment.

LRA initially agreed to purchase the base from the Air Force for $32.5 million. However, redevelopment costs for projects, such as bringing the roads up to city code, were higher than expected. Many redevelopment agencies working with base closures experienced similar problems and, last year, the federal government passed legislation that allows the Department of Defense (DOD) to give closed bases to local communities for free. LRA had paid $8 million toward base purchase at that time; DOD has forgiven the rest of the debt.

Approximately 75 percent of LRA’s redevelopment funds comes from revenue bonds, bank loans, real estate sales and leasing, and tax increment financing on the property. The remaining 25 percent comes from public sources, including federal, state and local grants.

As in other base redevelopments, LRA had to comply with the McKinney Act, a federal statute stipulating that surplus federal land be offered first to transitional housing providers. (The law has been reworked to exempt base closings from the McKinney Act, but it still requires redevelopers to consider the need for transitional housing in their plans. The change is partly in response to LRA’sdifficulties.) Initially, LRA and providers from Catholic Charities and the Colorado Coalition for the Homeless agreed to scatter transitional housing units throughout the property, but those providers found the arrangement difficult to manage and asked LRA to construct new facilities. LRA and the providers now are in binding mediation to find a solution with the next few months.

Redevelopment projects will create 4,000 new homes and apartments. Currently, there are 500 units from existing military housing and 700 new homes, apartments and townhouses. One senior community is open, and another is planned. Residential construction is scheduled for completion in 2004.

Commercial property will include a 95,000-square-foot Town Center with retail stores and 108 loft apartments. A business park with up to 2 million square feet of office space will feature bioscience, telecommunications, computer service and financial firms; no heavy industry will be included. Some employers that previously leased space from the Air Force are remaining on the property. Commercial development is scheduled for completion in 2006.

In addition to residential and commercial properties, educational and technological amenities are an important part of the community. The Higher Education and Advanced Technology (HEAT) Center, a 186-acre campus of the Community College System of Colorado, will offer academic programs and training emphasizing technology. It will serve up to 10,000 students when it opens in 2009.

All homes, educational institutions and businesses have a digital, broadband network installed with their utilities. The telecommunications options allow for remote home HVAC control and home technology customization.

The development also features 800 acres of recreational space, including public golf courses, sports fields and parks. Bike paths and 12-foot detached pedestrian sidewalks make the community pedestrian-friendly.

Denver and Aurora expect to profit from the base land sales after infrastructure costs are paid. Both cities also expect benefit from sales tax revenues collected on the base as well as from the commercial and educational opportunities.

LRA will dissolve when redevelopment is completed in 2008. The project won Denver and Aurora a 1999 Sustainable Community Award from the Joint Center for Sustainable Communities, Washington, D.C.