(The Center Square) – The Denver Downtown Development Authority recently announced it will spend $45 million to revitalize a downtown Denver property.
The DDA plans to purchase the Denver Pavilions, a shopping mall located in the upper downtown district. It plans to spend $37 million to acquire the property and an additional up to $8 million for property improvements, leasing and redevelopment planning.
The city will then sell the property to someone else who it says “can implement the new, mixed-use redevelopment vision for the site.”
Denver Mayor Mike Johnston applauded the announcement.
“If you grew up in Denver, you have a great memory of going to the Denver Pavilions,” said Johnston. “We want the next generation to experience that same joy … Over the next several months we will be coming together as a city to bring the pavilions into a new era and to reinvigorate it as a vibrant hub of upper downtown.”
The DDA plans to continue to retain operating revenues from existing retail and parking operations at the Denver Pavilions during its redevelopment. The city and the DDA hopes this will bring new energy, as well as new housing, hotel, office, retail, restaurants and lifestyle amenities, to the downtown.
“This purchase represents more than a real estate transaction. It’s a bold commitment to restoring the vitality of our city center,” said Denver City Councilman Chris Hinds. “By bringing Denver Pavilions under public stewardship, the DDA can unlock private investment, activate ground-level uses, and preserve this pivotal block as a place where neighborhoods, commerce and culture converge.”
Originally opened in 1998, the open-air Denver Pavilions has over 40 stores and restaurants. The 350,000-square-foot mall is currently owned by Gart Properties.
The city’s purchase of Denver Pavilions, which has been plagued by vacancies since the pandemic, is a gamble it hopes will revitalize a once-thriving downtown district.
“The truth is, the pavilions has been a central gathering point for Denver,” said City Council President Amanda P. Sandoval. “We can, and must, reactivate that heart. Doing so translates directly into hundreds of new jobs and millions of dollars in revenue for our city. The vitality of our downtown depends on it.”
The DDA is funded by taxes generated within the downtown district. In 2024, voters approved $570 million to be used by the DDA for development in the downtown district.
Previously, the DDA already approved $23 million to purchase two parking lots near Denver Pavilions.
