Multiple developments dot Loveland downtown

LOVELAND — Loveland’s big investment in its downtown is starting to pay dividends with private sector investment following the city’s lead.

“I just think people are sensing the value of our DDA (Downtown Development Authority) and people are understanding that there are a lot of good properties to be redeveloped or developed,” said Sean Hawkins, the executive director of the DDA. “There are a lot of good business tenants. Others (patrons) are coming down and having a good time.”

The city of Loveland’s direct involvement kicked off the downtown revival. Early this century, the city created master plans for commercial use and streetscaping and brought strategic properties under its control, culminating in the 2½ city block, mixed-use Foundry project, which was completed in 2019.

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The city is following up with the recent decision to finish funding the Pulliam project at 545 Cleveland Ave., a Works Progress Administration project completed in 1938, which was initially used as the city hall. The city council recently directed staff to come up with an additional $3 million to complete funding for the renovation of the building, which is being aided by a $1 million federal grant and $2.25 million from the non-profit Pulliam Community Foundation. In total the project is expected to cost slightly more than $10 million.

“That was a really exciting day. We’ve been at it for 12 years,” said foundation President Norm Rehme about the 8-1 council decision. “There’s a real need for meeting space, and this building can provide that for everyone — from community groups, and weddings to businesses needing convention room.”

“It’s a real challenge to do this level of fundraising with an all-volunteer staff. But now we’re seeing the end of the campaign,” Rehme said.

Likewise, expect the city to be handing off the bulk of revitalization efforts to the DDA, which  was passed by voters in December of 2017. The DDA was granted authority to assume $60 million in debt, which can be paid back using tax-increment financing. In essence the DDA gets the increase of sales taxes that accrue in the district in order to repay the debt.

The math is a little complex in Loveland, Hawkins said, as the city’s own TIF financing also gets part of those funds. However he estimated the DDA is funded to the tune of about $400,000 annually today.

Natural Grocers tapped into those funds for its new location at North Lincoln and Eighth Street, getting a sales tax rebate that could bring the company $500,000 over 10 years. The DDA keeps the first $150,000 each year, but the grocery keeps the excess until it reaches the $500,000 limit.

“That corner had not produced any sales tax revenue since 2008, and it was a project we were very anxious to get back contributing,” Hawkins said. “They were impressed that it was right in the heart of the city’s downtown, and they were also impressed by rising traffic counts.”

Likewise the Cleveland Station, at the corner of Cleveland and Fifth Street, went to the DDA for $800,000 for widening sidewalks and improving historical building facades. Today, the site features live music and dining at the ground-floor saloon and traditional office space upstairs.

“We have one vacant space,” said leasing agent Rico Devlin, noting that many of the business tenants are coming downtown from newer developments near Interstate 25. “Part of it is right sizing and being closer to restaurants. But down here they are paying $25 (per square foot) as compared to $30 to $35.”
The restaurant, the Tom Davis Saloon, is also taking off, he said. “They are going strong, and I hear a lot of people all over town talking about them. It’s a happening place to be.”

Michael Pelphrey, a principal of Aslan Construction in Berthoud, recently bought the Elks Lodge on the 100 block of East Fourth St., with the idea of expanding the downtown music scene in a significant fashion. 

“Nobody is getting music right (in Northern Colorado) ,’’ said Pelphrey, who moved here from Austin, Texas, in the 1990s. “We’re going to start with the acoustics first.”
The property was purchased for $1.85 million and is a landmark building, which means a great deal of historical renovation. Plans include using the ballroom for a music venue, and include space for a restaurant, a downstairs bar, retail areas, and practice space.

“We’re going to be chasing financing wherever we can find it,” said Pelphrey about the renovation effort. “Loveland as a whole has been successful; I’ve seen retail space go from 12 bucks to 20, but this is definitely an opportunity to make this an entertainment destination.”

The Collection @ Sixth Street,  205 E. Sixth St., is following the lead of mixed use ground level commercial with residential upper levels, but it is bucking the trend of apartment dwelling by offering condos for purchase. Named for the fact the property was formerly the city library, the property is owned by 6th St. Library LLC, with Kurt Skott and Bob Dehn the majority owners.

Leasing agent Hilary Dehn said the time is right for the 15 units of condos, with private and secured parking.

“There are a lot of  apartment options, but these are the first downtown condos within a block or two of everything,” she said. “A Natural Grocers is going in a block away from us.”

Another big project on tap is known as the Draper/Heartland project and includes five existing buildings on the 300 block of Fourth Street and a 56-space parking lot owned by the city. Plans are to tear down three of the buildings, which are in disrepair, and historically renovate the other two buildings, creating 14,000 square feet of commercial and 96 multi-family units for rent. The site is formerly Draper Drug and Draper Soda Fountain, and the plans are to restore the most historically significant buildings.

Jay Hardy, who was a principal with Brinkman Construction when it was selected by the city for the Foundry project, has been retained by Burgener Holdings to help oversee the project. Hardy said the parking lot negotiation with the city is key to the project, as it will be developed into a 277-lot parking building.

“Our deal is not completely done,” Hardy said. “Basically we’ll pay for the ($11 million) garage,” securing parking for residents and creating more downtown parking for the district. Hardy said the developers are experts in downtown renovation and will likely be approaching the DDA for facade renovation money.

Hawkins said historical renovation is a key to successful downtowns, but there is more nuance in creating a blend of redevelopment. That is difficult for city councils to balance, he said, as council members need to balance the needs of an entire city when making decisions.

“The key is our organization is partnered with the city, but not bound by those confines,” he said.

“The city council is concerned with the downtown, but we wake up every morning thinking about it.”