My husband George and I have lived near Highlands Square since 1990. We've witnessed the proliferation of wonderful shops, restaurants, stores and professional offices in the neighborhood. We've been here for the zoning controversies and for the bannishing of WalMart from the neighborhood. The North Denver tradition of feisty involvement is alive and well. It's been a source of inspiration, frustration and humor for many of us, I'm sure.
We are both Realtors with Nostalgic Homes, therefore we are constantly in touch with the housing concerns, both financial and esthetic, of our clients and neighbors. The well-being of these individuals and families is of utmost importance to us.
Our intent with this blog is to contribute to the neighborhood discussion, to share information that will be beneficial to established homeowners, buyers and sellers, and hopefully to entertain from time to time.
So, here goes the first one:
Newspapers and the blogosphere have been ablaze the past few months with the objections of neighbors to the proposed Red Peak Development, 160 units of rental properties in three 5-story buildings in the heart of Highlands Square. In my opinion, two issues central to the discussion have not been adequately aired in the midst of the uproar.
Issue #1: Fairness
Red Peak properties is leading the charge to develop the site. In fact, at this time Red Peak is not vested in ownership of the property, so their interest is speculative for the time being.
The “owner” of the land at issue, Tom Wooten, is not personally in title on the property. Mr. Wooten is the Senior Vice President of Newmark Knight Frank, a multinational New York-based firm that represents owners, tenants, investors and developers. Last year, NKF transactions were valued at more than $45 billion with annual revenues of over $993 million.
Mr. Wooten engineered the purchase of the sites in 2007, when it was an acknowledged fact that the Highlands neighborhood was a mish-mash of inappropriate zoning. The BluePrint Denver U-MS-2 (2 stories) designation for the business district was a matter of public record, as was the U-SU-A/B/C (single family) zoning for the residential streets in the area.
Mr. Wooten's investors paid a total of $6,563,800 for 53,680 SF of properties ($122/SF), according to public records. (For a basis of comparison, investors paid $1,100,000 for 12,600 SF ($87/SF) in 2008 for a parcel at 31st-32nd and Irving where appropriate development is taking place.)
Mr. Wooten was successful in convincing then-Councilman Rick Garcia and the Office of Planning that his rights as property owner should supersede BluePrint Denver’s designated zoning for Highlands Square. The decision to allow him main street — 5 story — zoning was discretionary and arbitrary.
This is a classic case of rationalizing the means to an end. The purchaser was aware that the zoning was slated to change to a category that would ultimately prohibit large-scale development The city fell into line with the notion that an inflated sales price was adequate justification for an outrageous zoning exception — main-street zoning — in an area of small businesses and single family homes.
Several bloggers have charged that the neighborhood association did not respond to this zoning exception in a timely manner. In fact, there was strenuous and well-documented objection. Neighborhood residents are angry because they’ve been betrayed by the very zoning process that promised to bring an end to neighborhood zoning disputes.
Factoid: Highlands residents have collectively invested more than $700 million in their properties, many paying a premium to be near Highlands Square. There are more than 2000 neighborhood residents’ signatures on the No High Rises for West Highlands petitions. The proposed Red Peak development will most certainly diminish the value of nearby homes. Do these homeowners not also have property rights? Why is the City protecting the investment of far-away institutional investors and ignoring the rights of the local property owners?
Issue #2: Individual Property Owners vs. the Corporate Presence in Highlands Square
The inherent charm of Highlands Square lies in the individuality expressed by business owners in their one-of-a-kind shops and the neighborhood of human-scale vintage homes that surrounds it. These shops and residences are the soul of Highlands. Their hard work and investment has resulted in the increased property values in the area.
Sure, there are exceptions. Chipotle is owned by McDonalds Corporation. But Chipotle has been a good corporate neighbor, donating money to the establishment of the Wolff Place Historic District. There is an 11-story senior residence owned by Beth Eden Baptist Church at 32nd & Julian. In fact, there are many such charitable institutions scattered around the neighborhood, and most of their residents don’t own cars.
The high quality of the restaurants and shops has brought many visitors to the neighborhood. Parking is at a premium. Most of the surrounding streets have strict limits on allowed parking time. Homeowners need a permit to park in front of their own homes. The availability of parking is an issue critical to the survival of the Highlands Square businesses.
So, enter Newmark Knight Frank with revenues of $993 million and Red Peak Development with a portfolio comprised of 2,054 rental units in the metro area. Enter 160 rental units in Highlands Square (potentially 320 human beings and their automobiles… and their friend’s automobiles?). Really?
The development represents an essential shift in the character, the ownership profile and the priorities of the neighborhood. And the neighbors are heartsick and angry.
We welcome your questions and comments, and of course we're always happy to help you with any real estate needs.
For more information visit No High Rises in Highlands Facebook page.
