Tuesday, March 17, 2026, 1:30 p.m. (Denver time), Cathy Reynolds City Council Chamber 1437 Bannock Street, Room 450
This special session of the City Council's planning board working group received an update from Community Planning and Development (CPD) staff Andrew and Rob on a missing middle housing project, including preliminary results of a financial feasibility study for three Phase 1 strategies (limiting mass and scale of new residential development, an infill bonus, and an affordability bonus) in the urban neighborhood context. Staff reported that missing middle development appears financially feasible in the urban context, that reduced floor area slightly lowers profitability of large spec homes, and that the fourplex model struggles under current building code requirements. Council members asked about effects on property values and taxes, how many lots could actually be redeveloped, risks of accelerating economic segregation, infrastructure and Denver Water tap-fee barriers, and text amendment criteria. Staff announced an upcoming community meeting series and said the full feasibility report is expected in the summer. No votes or decisions were made.
0:06 It's time for a special
0:07 session of City Council's
0:09 planning board working group.
0:14 Join us for City Council's
0:15 planning board working group
0:18 starting now.
2:23 Kevin Flynn, southwest
2:24 Denver's district 2. And so
2:28 your district 5 here planning
2:32 to District 8. Why do care
2:34 planning for Cashman South
2:35 district friends like Vice
2:37 Chair Planning board Alisha
2:40 Khan Court. Why wouldn't he
2:43 was the best month in a more?
2:44 Everyone, Andrew, every
2:46 community planning and
2:48 development and rob, take cbd
2:49 stuff. If you're a hose for
2:57 planning more. Okay. We going
2:59 to start You happy to go ahead
3:03 and get started as people are
3:05 walking moment check and I
3:09 think great. Became. All
3:11 right. Well, thank you again
3:13 for for taking the time to
3:17 meet with Andrew, myself are
3:18 going to give presentation
3:21 update house into profit in
3:22 coming a lot of time for
3:23 discussion on what we're
3:27 planning to share today. So
3:28 during today's meeting will
3:29 provide a quick reminder of
3:31 what the project goals and
3:32 strategies are. And then we'll
3:34 recap what we discussed in our
3:37 last chewing. Well as some
3:38 other recent meetings that in
3:44 between your last meeting will
3:44 share some of preliminary
3:48 financial Stability Fund news.
3:53 So as a unlucky housing
3:54 choices, schools were
3:55 developed, using plans and to
4:00 provide additional We're We're
4:03 a team. 2 more residents and
4:04 is more plentiful providing
4:08 improved supply. The project
4:10 will have to face is the first
4:11 phase. We're focused on
4:11 missing middle housing
4:16 approaches that center around.
4:17 Affordability in preserving
4:19 existing homes. These 2 will
4:20 then expand on these missing
4:22 middle housing opportunities.
4:22 But we're really excited about
4:23 the strategies we have in
4:24 phase one that we're
4:30 developing. As a reminder,
4:31 these first phase strategies
4:32 for use the mass and scale of
4:33 new residential development in
4:34 our scale residential
4:36 neighborhoods in an evil
4:37 missing middle housing when
4:41 existing house preserved or
4:43 when one of new units is
4:48 Affordable Housing Unit. So
4:51 quickly, to recap on some
4:53 recent meetings during our
4:55 last advisory committee
4:56 meeting in early FEBRUARY, we
5:00 shared our preliminary
5:03 results, of our financial
5:03 feasibility study with that
5:04 committee. And we had a great
5:05 discussion about those early
5:09 results. In our in our
5:10 continue to develop these
5:10 building on that as we
5:14 these 3 phase, one strategies.
5:17 Also during our last joint
5:17 session with this group, we
5:22 shared rv's one strategies
5:23 that we had that previous
5:25 slide showing. We've got some
5:26 great feedback on these
5:28 strategies, including some
5:29 potential unintended
5:29 consequences and concerns
5:31 about some of the plane
5:33 guidance. So now we hope to
5:37 build on that conversation and
5:40 share what we the preliminary
5:47 financial feasibility study So
5:48 what is an economic
5:50 feasibility analysis? So our
5:51 financial feasibility study is
5:53 being conducted by our
5:54 consulting team for this
5:57 project, which is our London
5:59 Studio, c some of members of
6:01 those teams are here today to
6:02 help answer some of the
6:04 questions that might come from
6:06 this group in this study looks
6:08 the inputs from construction
6:11 costs and land values drive
6:12 from developer interviews,
6:15 case studies and other work
6:16 into into their pro formas to
6:17 test a variety of scenarios to
6:21 understand what can be built
6:21 and and what what would be no
6:25 under current conditions.
6:26 Current zoning regulations and
6:27 proposed zoning rules with our
6:32 3 strategies. This financial
6:33 feasibility analysis helps us
6:35 determine whether individual
6:37 property owners, conventional
6:38 developers and affordable
6:39 developers might pursue the
6:40 new housing options under our
6:43 proposed rules. This study is
6:44 focused right now and what
6:45 we're going to look at the
6:49 results of today on the curb.
6:51 In context. We're continuing
6:52 continuing to work on the
6:52 urban edge in suburban
6:55 context. But as we move
6:55 forward, tons that were
7:00 meeting when we looked
7:02 locations land values, lot
7:04 sizes. All of that is based on
7:09 urban neighborhood So first,
7:10 we'll look at the economic
7:12 feasibility impacts of our
7:14 proposed for change the start
7:16 of changes that we're looking
7:18 to me to limit mass and scale
7:19 of new residential development
7:20 in our low scale residential
7:22 neighborhoods how these relate
7:25 to both single unit and
7:26 missing middle housing
7:27 development that would be
7:28 allowed under rules in these
7:34 areas. So the first part of a
7:38 strategy limit gross floor
7:40 area based on lot size based
7:42 lot size, the number units in
7:43 neighborhood context. And in
7:45 this case, we are specifically
7:50 looking context. We are also
7:51 proposing changes to the
7:53 building forms that address
7:54 compatibility like health. 3rd
7:55 stories need to be built. This
7:56 would help new development fit
8:00 better into existing
8:01 neighborhoods. But this also
8:02 is a balance to ensure 2 or
8:03 more units still fit within
8:08 this house scale form. So here
8:09 within single unit into unit
8:10 neighborhoods, the
8:11 profitability large homes and
8:14 duplexes. Has been slightly
8:18 reduced under the proposed 7
8:20 However, this also this tells
8:22 Bility also slowing some
8:24 speculative development. But
8:25 these these housing types are
8:26 still possible. Still feasible
8:30 to be built. Recently allowed
8:32 floor area for the traditional
8:35 dwelling financial feasibility
8:37 as low as for new single unit,
8:38 homes increases for 4 that
8:39 builder for with each
8:44 individual for each additional
8:47 So if a little bit more
8:50 closely in nation with first
8:52 floor area, reduces potential
8:53 returns. They're still a
8:54 positive return for single
8:56 into homes. Just not quite as
8:58 profitable for developers who
8:58 are building these massive
9:02 single unit homes. A suspect
9:02 in Italy and then would sell
9:03 them on the market for for
9:06 multiple millions of dollars.
9:08 These new single into unit
9:10 development as we reduce the
9:13 size naturally create housing.
9:14 That is that lower in cost 12,
9:17 still not being affordable.
9:18 Who work for lots of Denver
9:20 writes it is still more
9:20 affordable than than what
9:23 we've actually built
9:25 previously. Again, this
9:26 sliding scale where we're
9:29 allowing additional floor area
9:29 for each additional unit
9:31 encourages missing middle
9:33 housing units makes them more
9:35 profitable over these larger
9:35 detached homes, which is part
9:39 of the purpose of of this of
9:41 this strategy encourages
9:43 homebuilder to think more
9:44 units rather than more floor
9:45 area looking to maximize
9:48 profit on a property, which is
9:49 from cities and kind of how
9:49 something that we've heard
9:51 the paradigm shifts within
9:55 their development community
9:55 and where they actually start
9:56 to see more of these. These
9:58 units built. We're missing.
10:01 The housing units built. So
10:03 that will look at the
10:04 financial feasibility, the
10:05 ability to development and are
10:08 they being focused? So in
10:10 these next slides will look at
10:11 look at the results of this
10:13 feasibility analysis that
10:14 includes land costs,
10:17 construction costs, other soft
10:18 costs to compare that with
10:21 possible sale prices and
10:23 rental rates and he's revenues
10:24 to understand terms and
10:27 ruffles for projects
10:29 utilities. So we made some
10:30 assumptions order might
10:32 everybody that this part of
10:32 the financial feasibility
10:34 study a specific to the urban
10:36 neighborhood context,
10:37 properties within their
10:37 neighborhood context. So
10:38 again, we're looking at a 60
10:43 to 50 lot with an ally. These
10:44 models also have space for for
10:50 parking on site. Compare
10:51 what's possible is what's
10:52 being proposed unarmed with
10:57 this project. Salute existing
10:59 homes preserve. We generally
10:59 found that the development of
11:00 additional missing middle
11:05 feasible returns on the new
11:05 housing on these properties is
11:06 units are enough to offset
11:09 these development costs. And
11:10 additionally, the units
11:13 created by the strategy are
11:14 more horrible. Then what would
11:17 otherwise be redeveloped on
11:17 the spot on property that
11:18 would be redeveloped under our
11:25 current rules. So you can see
11:29 one additional in that sale
11:29 here the to the left in car at
11:31 prices of that, that new
11:33 units. So, you know, this
11:34 could be possible for a
11:35 property owner who already
11:38 owns the land and has no land
11:40 cost. There's also a situation
11:43 where developer buys this
11:44 property redevelops. This rear
11:45 lot keeps front home in place
11:47 and sells both. These are all
11:50 situations that that would
11:51 result these allow comes in
11:54 that backyard cottage create
11:55 smaller units which would be
11:55 more affordable at that sale.
12:02 Price of 361,000 based on this
12:02 model and return both of those
12:07 units would be feasible. So
12:09 this infill bonus housing does
12:10 result in for sale and rental
12:12 units that are less than half
12:13 the cost of the typical single
12:14 housing single unit housing
12:19 that would be result of this a
12:19 lot similar to this being
12:25 redeveloped into the current
12:27 rules terms investment for
12:27 homeowners builders
12:32 developers. So finally, we'll
12:32 take a look at the
12:38 affordability bonus. And we
12:39 are looking land costs and
12:41 development costs to
12:43 understand the the revenues
12:45 after the project returns for
12:46 for sale and rental projects
12:50 or products. So the strategy
12:52 has more very results. And
12:52 some of this is due to the
12:56 variety of building types on
12:59 the first on the left, double
13:00 duplex model would be the most
13:01 feasible creates fairly
13:08 attainable units as models
13:10 with the for double unit
13:10 required their end of show.
13:14 And that that death outline
13:14 the college corps in the
13:17 middle is slightly less likely
13:19 due to higher development
13:20 costs and the lower total
13:21 floor area divided by fewer
13:27 fewer units. Finally, a
13:28 far-right, this 4 plex model
13:30 really struggles to be
13:32 feasible to, to hire building
13:32 costs, likely due to some of
13:35 the building code requirements
13:38 what's required for attached
13:39 units, especially those that
13:44 stacked on top of one another.
13:47 But findings here that 2 plus
13:48 developments are peaceful
13:52 options within the support
13:53 ability bonus. However, target
13:55 audience here are really
13:56 mostly our affordable
13:58 developer seeing way. And so
13:58 those are looking for
14:01 profitability just to kind of
14:06 make that make this So it's
14:08 kind of lower threshold on
14:11 feasibility So the multiplex
14:12 example, again, this is not
14:14 feasible for market developers
14:15 due to those high construction
14:17 costs, but potentially again
14:17 for affordable housing
14:21 developers since they are. I'm
14:25 not looking to to turn a
14:28 profit the in the city read
14:33 about in a way that use most
14:35 efficient But it is worth
14:38 noting here that the that
14:41 building code updates, some
14:44 another review requirements
14:44 changes to condo defect
14:46 are also things that, you
14:49 know, well, some of this
14:52 project as as a recommendation
14:59 times. So just it will get to
15:00 discussion, we're looking
15:01 forward upcoming meetings with
15:03 our committee. Again, as I
15:04 mentioned, we continue this
15:06 conversation about feasibility
15:08 in the urban suburban
15:10 contacts. Those outcomes will
15:13 be slightly different again
15:15 because the use The contacts
15:17 are different, like build
15:17 contacts as well. So some of
15:18 the former changes will be
15:23 different. And that to
15:24 continue those conversations
15:24 continued to refine the
15:29 strategy the summer. We're
15:31 also looking forward to
15:32 beginning of our community
15:34 meeting series next for
15:35 starting at the Highland and
15:37 Cook Park Recreation Centers.
15:38 Then after spring break will
15:39 be hosting meetings in
15:43 Montbello and ask our park and
15:46 tonight will mostly Andrew
15:48 made an last week to post
15:49 flyers that every library and
15:51 community center in the city,
15:54 including those that are shown
15:58 here. But some of this was
15:58 Friday afternoon spiking
15:59 across the city's is to
16:04 deliver these these flyers and
16:05 time striving far-flung
16:05 corners of the city to make
16:10 sure that we notice as best as
16:11 possible. In addition, we've
16:14 noticed these meetings and our
16:15 survey on social media to all
16:19 registered neighborhood
16:23 organizations to our community
16:24 hard at work on a list that
16:24 have 4 for receiving e-mail
16:29 updates. Then we also have
16:31 ongoing community open houses
16:31 and meeting with our with our
16:36 including the Bear Valley and
16:37 South City Park in district 4
16:40 just this week, too. So with
16:45 that, I will stop turn it over
16:47 to council PRESIDENT Take over
16:52 the meeting and discussion.
16:53 Obviously everyone and I was
16:54 at a time last week and that's
16:56 what happened here had to town
16:57 for only trying to get caught
17:01 up on everything. Thank you
17:05 for that. Informative
17:05 presentation. I think there's
17:06 lots of questions. Know I have
17:09 my set of questions so far in
17:14 the q I have Councilmember
17:14 Cashman Council council
17:15 members plan announce they
17:16 need.
17:28 It kind care. And when it
17:29 comes from a caption. Thank
17:32 Thanks to the presentation. So
17:37 wondering if can now assist.
17:39 Assuming if I I forget what
17:40 the numbers are. But if I can
17:42 do 5,000 Square feet now and
17:45 now I can only build 4,000. My
17:51 property value Godin goes I'm
17:56 also guessing that we now she
17:58 I can believe duplex try
17:59 plexaderm whatever my property
18:02 value would go on. I'm just
18:05 wondering, any validity to
18:10 train of thought? And what
18:13 does that do with property
18:14 tax, blah, blah, blah, blah,
18:16 That's that's a great
18:17 question. And I might turn to