Alterra's move to the old Denver Post building: the deal, the incentives and what Council members asked
The Ikon Pass company would lease two floors of the city-owned building at 101 W. Colfax. A committee advanced the lease and a $7 million downtown loan agreement 6-0. Mayor-Council takes it up Tuesday.
Alterra Mountain Company, the ski company behind the Ikon Pass, plans to move its headquarters from River North to the former Denver Post building at 101 W. Colfax Ave., which the city now owns. The move has drawn criticism in north Denver, and company executives told a Council committee last week that they had decided to leave their RiNo offices well before talks about this building began, Denverite reported.
Why it matters to residents: the city is the landlord here. Rent from the building is supposed to help pay for it, and the deal includes a year of free rent, two years of free parking and a low-interest loan from the Downtown Development Authority.
What is before the Council
There are two items, introduced Sept. 8:
- Council Bill 26-1334 approves a funding agreement between the city and the Denver Downtown Development Authority for the project.
- Council Resolution 26-1337 approves a lease with Alterra for about 64,654 square feet.
The Governance and Intergovernmental Relations Committee approved both for filing on Oct. 20, 6-0. Voting yes were Kevin Flynn, Serena Gonzales-Gutierrez, Council President Diana Romero Campbell, Amanda Sawyer, Jamie Torres and Darrell Watson. Stacie Gilmore was absent (roll call). The building is in District 10, represented by Chris Hinds.
The terms, as presented to the committee
From the city's presentation on our meeting page:
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- Rent: a 12-year lease at $22 a square foot, triple net, rising 50 cents a year (video at 13:36).
- Free rent and parking: a construction period, then one year of free rent and two years of free parking. City staff projected about $15.7 million in total revenue over the lease. Alterra could leave at year five by paying a $1.5 million fee (video at 14:39).
- Occupancy: staff said the building is 32% occupied and would reach 54% with Alterra (video at 11:30).
- Improvements: the city would credit Alterra for tenant improvements over the life of the lease instead of paying up front (video at 15:09).
- The DDA loan: up to $7 million at 2% for up to half the cost of improvements, repaid over the lease. The city is not a party to that loan (video at 4:43). A $1 million no-interest state loan would pass through the DDA, bringing the total to $8 million (video at 23:14).
- Other incentives: up to $485,000 in city job grants paid over two years, plus a state package of about $3.9 million, mostly tax credits for new jobs (video at 8:53).
An Alterra executive told the committee the company would move 275 employees and has committed to hire 106 more (video at 36:50). City economic development staff said job counts would be checked against occupational privilege tax records before grants are paid (video at 25:49).
What members asked
- Watson, whose District 9 includes RiNo, said the administration's communication with his office and the neighborhood's improvement districts fell short, and asked what the process will be when DDA incentives draw a business from one district to downtown. The presenter apologized and said the council member should be called in the future (video at 16:40).
- Paul Kashmann (District 6) questioned whether the city was giving too much away, Denverite reported (video at 33:43).
- Gonzales-Gutierrez asked whether the construction period plus the free year amounts to about two years without rent (video at 30:36).
- Flor Alvidrez (District 7) asked how the general fund will be protected and when rent will cover the building's debt payments, and said she had been asking for a cash-flow statement since budget season (video at 49:44).
What our records add
The city bought 101 W. Colfax under resolution 23-1899 in late 2023 and financed it through a 2024 facilities lease, 24-0249. At a Sept. 21 budget hearing, a Council member noted the 2027 budget includes $10.3 million for the building's annual payments and property management and asked for a building-specific cash-flow statement; staff said they would follow up (video at 1:08:11).
What's next
The items are on the Mayor-Council agenda Tuesday, Oct. 27 (agenda). City staff told the committee the full Council would take them up in early November, with the lease starting Oct. 1, 2027, after construction (video at 15:40). Find your Council member on the district map.