Dairy Arts Center completes purchase of building from city

BOULDER — The Dairy Arts Center has completed the purchase of its building from the City of Boulder, a move authorized by a unanimous vote of the City Council in August.

The former Watts-Hardy Dairy at 2590 Walnut St. — built in 1970 — was transformed into a multipurpose arts center in the early 1990s but encountered financial difficulties. The city took ownership of the building, which enabled the nonprofit to complete necessary renovations and continue operations.

The sale price was $11.7 million, but with the city providing a credit for needed capital improvements, including HVAC and roof replacement, as well as an $8.7 million credit for past capital improvements made to the building, the balance of $1.5 million was paid at closing.

“This moment represents both a homecoming and a new beginning,” Melissa Fathman, executive director of the Dairy Arts Center, said in a written statement “The Dairy was founded by artists who envisioned a space where creativity could flourish across all disciplines. To once again own our building is to reclaim that founding vision in the fullest sense.

“We are forever grateful for the City’s assistance,” Fathman added. “But the arrangement was never meant to be permanent. The founders and early supporters are thrilled that we’re now in position to take full ownership of our beloved facility once again.”

The purchase ensures that the building, now home to the Dairy’s theaters, galleries, studios, and the Boedecker Cinema, will remain permanently dedicated to the arts.

“Ownership establishes a solid foundation and longevity of mission for the building,” Fathman said. “It means supporters know their generosity will be a vital investment in the arts and the community for years to come.”

The Dairy Arts Center supports more than 100 local arts organizations annually and welcomes over 200,000 visitors each year. It provides rehearsal, exhibition and performance space for artists and companies across disciplines, including theater, dance, film, music and visual art.

“Our mission-driven commitment to Boulder’s artistic community is not only important to our patrons, but vital to the ecosystem of local artists and organizations who rely on this space,” said Lisa Albright, chair of the Board of Directors for the Dairy Arts Center. “The Dairy stands today because visionary artists, generous citizens, and a supportive city each saw potential in this building — and together turned it into the beating heart of Boulder’s creative community.”

Geoffrey Keys, president of Keys Commercial Real Estate and chairman of the Facilities Committee of the Dairy Arts Center board of directors, highlighted the complexity of the deal.

“This five-year journey to bring the building back into the Dairy’s ownership was complex, but absolutely essential,” Keys said. “From a facilities standpoint, ownership gives us the ability to make long-term capital improvements and truly steward this building for generations to come. It’s a testament to the dedication of our board, our community, and the City of Boulder.”

Marc Painter, who led Holland & Hart’s pro bono representation of the Dairy, added, “We were grateful for the collaboration of the City’s staff and the City Attorney’s Office, as well as the support of City Council, in navigating the complexities of the Dairy achieving ownership again. All sides acknowledged that the flexibility that comes with restoring the Dairy’s ownership would provide even greater long-term benefits to the Boulder community.”

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