Boulder council takes step on University Hill hotel proposal

BOULDER — Members of the Boulder City Council took a tiny step Tuesday night to move forward on a proposed hotel on a site across Broadway from the future events center on the University of Colorado Boulder campus. They told the city attorney to begin negotiations toward the sale of a city-owned parking lot on Pleasant Street.

While the move may please those on University Hill and in the business community, there were no promises from the council. Members will want to see what the developer of the hotel has in mind before they approve sale of the lot.

University Hill is an area of Boulder west of CU bounded by Broadway, Aurora Avenue, Ninth Street and Arapahoe Avenue. It has traditionally been a student-oriented business area known for its music scene, restaurants and retail shops.

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In recent years, however, it has declined, and a large number of vacancies exist. Hill proponents have been clamoring for the council to take some action — at least not stand in the way — of the hotel development that many think will be a catalyst for other commercial activity in the area.

Proponents have created a video that outlines the case for the hotel. And members of the council received a letter this week from businessman Jamie St. John pleading for action.

At issue is a proposal from Denver hotel developer Nichols Partnership, which hopes to redevelop land at University and Broadway to build a 189-room hotel, which would be directly across Broadway from the proposed CU events center. The plans as they currently sit call for purchase of the city-owned, 62-space Pleasant Street parking lot adjacent to the hotel site. The lot, as a parking study determined, is never more than 66 percent occupied.

At least some of the council members seemed to understand why the Hill businesses have been clamoring. “There’s a concern that they’re not being heard, that we’re just stringing them along,” said Mayor Suzanne Jones.

Indeed, St. John said in his letter that the area feels that it is “the victim of prolonged inaction and indecision over reinvigorating this special part of Boulder. This is the right project at this crucial time.”

St. John also characterized the business sector on the Hill as being placed in “economic purgatory.”

“Taking no action yet again, and letting this opportunity slip away, is in fact taking very directed action — action against the Hill,” he said.

Council member Lisa Morzel expressed the most reservations about the project during council discussion about how to direct the staff. “I don’t know what we’re negotiating. We need to get the price we want, or it’s not negotiable,” she said. She expressed concern about the size of the project, which would be the fourth largest hotel in the city in terms of number of guest rooms.

“We’re not approving a hotel,” council member Bob Yates said. “We’re approving negotiations about the sale of land, which will be contingent upon what they want to do.”

In the end, the council gave its “nod of five” to direct the staff to begin negotiations about sale of the land.