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March
29, 2006
By Christopher N. Osher
Denver Post Staff Writer
The Denver City Council on Tuesday granted
initial approval to authorizing $2.4 million in low-interest
federal loans for the Lowenstein Theatre redevelopment along
Colfax Avenue.
Councilwoman Jeanne Faatz led a feisty challenge
to dissuade her colleagues from supporting the project,
but in the end, she was the only council member to vote
against the proposal.
Faatz objected because the city already has
targeted $1.9 million in federal loans for the project.
She further stressed that the city may reimburse another
$4.6 million in developer costs by pledging future property
and sales taxes generated by the project.
Other council members said they viewed the
project as crucial to sparking redevelopment along Colfax
Avenue.
"Change won't come along Colfax unless
we put city muscle behind it," said Councilwoman Carol
Boigon.
The 56,000-square-foot project will have space
for the Tattered Cover Book Store, Twist & Shout Records
as well as an independent cinema, said developer Charles
Woolley II, whose St. Charles Town Co. purchased the vacant
theater just over a year ago.
John Huggins, the city's economic development
director, said the federal loans will come from the city's
pool of $8.8 million in so-called federal community development
block grant loan funds the city uses to generate economic
development.
He said the city usually extends loans to
20 to 25 projects annually. While the Lowenstein project
will use more of the loan funds than normal, Huggins said
the project should act as a catalyst to spur further development
along Colfax.
The council still must grant final approval
before the loans actually are approved.
Staff
writer Christopher N. Osher can be reached at 303-820-1747
or cosher@denverpost.com
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