Hard questions are being asked after a private event at Larimer Square rerouted traffic for three days, closed businesses and created numerous inconveniences for the neighborhood’s residents — an event that put virtually no money in the city of Denver’s coffers.
Ameriprise Financial, a Minneapolis-based company, hosted a private “welcome” party for the company’s top advisers, who are in town for a convention. The event sealed off the popular Larimer Street to the public Wednesday night and congested traffic since Monday while the event was being set up.
In addition to the inconvenience factor, eyebrows are being raised regarding the city’s apparent lack of financial benefit from this deal. By finding its way through a policy loophole, Ameriprise was able get the street-closure permit — which normally has a price tag of approximately $22,000 — for free.
“People are somewhat taking advantage of the current policies and procedures,” said Kevin Scott, special event and film liaison for Denver. “I think this event really brings some of that to light even more. A lot of policies and ordinances are being reviewed.”
It’s not unusual for Denver streets to be closed for events — for everything from festivals to fundraisers. City policy allows the fees for such events to be waived when it benefits a nonprofit, but the line between for-profit and nonprofit organizations is becoming increasingly hazy as such events gain in popularity.
Ameriprise worked with Larimer Associates, the managing company for Larimer Square’s real estate, which consists of restaurants, coffeehouses and specialty boutiques. Larimer Associates then enlisted the help of an area nonprofit organization, We Don’t Waste, to file the permit request.
“The ordinance provides that there must be a (nonprofit) beneficiary involved, and we were approached by Epicurean Catering and Larimer Square to see if we were interested in being a beneficiary in their activities, and we agreed,” said Arlan Preblud, executive director of We Don’t Waste.
In exchange for filing the paperwork and proving that it could meet the city’s insurance requirements for the event, We Don’t Waste received a financial contribution from Ameriprise.
Preblud said the event helped foster relationships between his organization and for-profit companies, which he hopes will continue to benefit We Don’t Waste and its hunger-fighting mission in the future.
A Larimer Square spokeswoman said We Don’t Waste benefited both from the financial donation and that it got all the leftover food from the event. Epicurean did not return a message Thursday evening.
While all of this was done legally, it raises serious procedural questions for city officials.
“The event scene is changing a bit,” Scott said. “And we are working on policies and procedures to find a better way.”
He did not specify which policies are being reviewed.
The city of Denver’s special-event requests, which include private parties such as the one Wednesday night, increased by 30 percent from 2010 to 2011. Now, Scott says, the city is receiving more and more requests that straddle the blurry line between charitable good and corporate play.
While the street fee was waived, Ameriprise still bought out most of Larimer Square’s businesses for the night, closing off the sidewalks to any pedestrian not wearing a party badge, and paid a private company for the barricades and any additional police presence that was needed, and gave the city $350 for parking meters.
When Mark Greenberg, owner of The Market, received an offer letter from Larimer Associates asking for him to name his price for closing down his business for the night, he refused to entertain the idea.
“This was not a political statement for me. It was a business statement,” Greenberg said. “I have a good rapport with Larimer Square. I can see why they did it. But I don’t think it was good for the block to close the street, personally.”
Greenberg, who has been in business at 1445 Larimer St. for 29 years, relies on a client base of about 500 regular customers daily.
“I’m not upset with Larimer Square,” he said. “But those people are never going to come into my store. My base of business is local, regular people.”
The Market stayed open, but customers couldn’t access the front door.
“They had to come in through the backdoor, by the dumpsters,” Greenberg said.
He never responded to the letter with his closing quote and doesn’t know how much Ameriprise paid other businesses in Larimer Square for the night.
Neither Larimer Associates nor Ameriprise would disclose what the businesses were paid.
“I’m sure it was a big dollar amount, or I don’t think (the businesses) would’ve closed,” Greenberg said.
Ocean Prime, 1465 Larimer St., was the only other business that stayed open as its front door faces 15th Street.
Without the city, and subsequently the taxpayers, receiving a financial perk from these events, residents were left feeling as if their hands were tied.
“The neighborhood sure wasn’t consulted,” said Dave Caprera, whose apartment overlooks Larimer Square, in an e-mail to The Denver Post.
The loud music reverberated throughout Caprera’s apartment well into the evening hours Wednesday.
“There should be a city policy that includes neighborhood input,” Caprera said. “I question the economic, social and political decision to sell a public street for three days to a private concern.”
