The Denver City Council on Tuesday granted initial approval to authorizing $2.4 million in low-interest federal loans for the Lowenstein Theatre redevelopment along Colfax Avenue.
Councilwoman Jeanne Faatz led a feisty challenge to dissuade her colleagues from supporting the project, but in the end, she was the only council member to vote against the proposal.
Faatz objected because the city already has targeted $1.9 million in federal loans for the project. She further stressed that the city may reimburse another $4.6 million in developer costs by pledging future property and sales taxes generated by the project.
Other council members said they viewed the project as crucial to sparking redevelopment along Colfax Avenue.
“Change won’t come along Colfax unless we put city muscle behind it,” said Councilwoman Carol Boigon.
The 56,000-square-foot project will have space for the Tattered Cover Book Store, Twist & Shout Records as well as an independent cinema, said developer Charles Woolley II, whose St. Charles Town Co. purchased the vacant theater just over a year ago.
John Huggins, the city’s economic development director, said the federal loans will come from the city’s pool of $8.8 million in so-called federal community development block grant loan funds the city uses to generate economic development.
He said the city usually extends loans to 20 to 25 projects annually. While the Lowenstein project will use more of the loan funds than normal, Huggins said the project should act as a catalyst to spur further development along Colfax.
The council still must grant final approval before the loans actually are approved.
Staff writer Christopher N. Osher can be reached at 303-820-1747 or cosher@denverpost.com.
