Union Station Partners won’t drop out of the competition to redevelop the Denver’s historic Union Station, despite a significant financing gap in the transportation component of its plan.
The group, led by Cherokee Investment Partners, plans to tweak its numbers until the owners select a development team.
“It’s a dance,” said Ferd Belz, president of Cherokee Denver LLC. “There’s only so many chairs. Someone is going to sit down, and someone’s not.”
The group and a rival team led by Continuum Partners/East West Partners have been vying since midsummer for the development, which could be worth $1.5 billion when all private construction is completed on the 19.5-acre site.
A decision is expected this week.
Both teams still have gaps in the funding they would need to finance the project’s transportation infrastructure, said John Huggins, the city’s director of economic development.
The station’s ownership group, with the help of outside real estate advisers and investment bankers, developed a financing model for transportation infrastructure, public spaces and renovation of the historic station.
“If we can find a way to finance that publicly, we would be in a better position to negotiate with either development team as to the value we would get for the private development rights that are created on top,” Huggins said.
Friends of Union Station, a citizens group, recently threw its support behind the Union Station Partners team. That group’s plan would cost $100 million more than the Continuum/East West proposal.
No matter which team is selected, residents in the neighborhood want to make sure their voices are heard as construction disrupts everyday life.
“Once they start this, it won’t be just a mess at Union Station,” said Fabby Hillyard, executive director of LoDo District Inc. “The site is going to be crazy.”
Staff writer Margaret Jackson can be reached at 303-954-1473 or mjackson@denverpost.com.
