The State Land Board on Wednesday unanimously selected Australian developer Lend Lease to build homes and commercial buildings on a fraction of the 26,000-acre Lowry Bombing Range.
It also chose Arapahoe Grasslands Conservancy as the team that will preserve most of the remaining parcel for recreation, education and restoration purposes. The board held 5,579 acres out of the conservation parcel for eventual use as water- storage facilities.
Development is expected to start by 2011 and extend through 2031.
Within the next 10 days, Lend Lease will sign a letter of intent to negotiate a deal with the board and place $10 million in an escrow account. Land Board officials are required to negotiate a draft lease with both Lend Lease and Arapahoe Grasslands within four months.
Lend Lease plans to develop the 3,209-acre site with 13,000 residential units. The $1.5 billion project also will include commercial development and open space.
Among the big reasons Lend Lease was selected from the field of four candidates: Its project will generate $328 million in revenue over 20 years, nearly $80 million more than the projected $248.5 million impact the development will have on the school system.
“Value, value, value is the name of the game on the development side,” said commissioner Holly Propst.
The parcel once held the Lowry bombing range and is thought to be the nation’s largest piece of undeveloped metropolitan property under one owner. The state holds the land in trust for the benefit of kindergarten through 12th- grade public education.
The Land Board has been charged with developing the parcel, which is five times the size of the Stapleton redevelopment, to maximize its value.
Another key reason the board selected Lend Lease is the company’s experience with environmental cleanup and its commitment to commercial as well as residential development.
“We don’t want just another bedroom community where people have to get in their cars and drive,” Propst said.
The board drew criticism from environmentalist Pam Kiely, who said members rushed to make a decision with Gov. Bill Owens is still in office. She said she had heard former Land Board staff members refer to the project as “Owens’ Ranch.”
“While it may be by chance that this decision coincides with the departure of Gov. Owens, appearances are most certainly otherwise,” she said. “This very much feels like a rush to get this done on his watch. … Why push this forward in the 11th hour of an outgoing administration?”
Kiely said she is pleased with the selection of Arapahoe Grasslands as its conservation partner: “That choice really does affirm the fact that the board can meet its fiduciary responsibilities through conservation.”
Staff writer Margaret Jackson can be reached at 303-954-1473 or mjackson@denverpost.com.
