The Denver City Council today decided to allow an extension on a city contract with a non-profit that specializes in securing loans to revitalize impoverished neighborhoods.
The city last year gave a $3 million contract to Seedco Financial Services, $2.5 million of which came from federal Community Development Block Grant funds. The contract was supposed to be the first of a five-year commitment from the city.
Each year the city plans to give $3 million to Seedco, which will use the money to attract additional private investment for redevelopment.
Councilwoman Jeanne Faatz objected to allowing Seedco to continuing drawing down on the amount committed last year because she feared too much was going to administrative costs in New York. But the council approved the extension on a 10 to 2 vote, with Faatz and Councilman Charlie Brown dissenting.
Peter Chapman, a former economic adviser to Denver Mayor John Hickenlooper who is now running Seedco’s Denver operations, said Seedco actually succeeded in keeping its operating costs below its expected amount. He said Seedco has a national presence, allowing it to do a better job of attracting private and foundation support.
Chapman said Seedco’s Denver’s office has secured financing for three projects, and plans to have three additional deals finalized in a couple of weeks. He said another 28 projects still are in the pipeline.
