The Denver City Council on Tuesday unanimously rejected a public hearing scheduled for next month to address a proposed affordable housing development in the city’s Sloan’s Lake neighborhood.

The council rejected consideration of the required public hearing “so issues can be ironed out,” according to District 5 Councilmember Amanda Sawyer.

In April 2019, the council approved an urban rezoning for a large parking lot located at the corner of 17th Street and Newton Avenue. Plans call for building a 16-story residential complex split between market-rate units and affordable housing units.

City Council’s resolution for a public hearing was its first mention of West Colfax’s “17th and Newtown Urban Redevelopment” plan since 2019’s rezoning.

The project anticipates roughly 158 affordable housing units, according to the Denver Urban Renewal Authority, which acts as a bridge between the city and potential developers for these types of projects.

Denver delayed consideration of the public hearing because “we weren’t completely done with final negotiations,” said DURA’s Executive Director Tracy Huggins.

Denver’s Planning & Zoning board unanimously supported the redevelopment application from Zocalo Community Development 10-0 during its Wednesday meeting.

“Now we’ve got a public process to move through,” CEO David Zucker said Wednesday.

The project follows an initiative to identify “blighted areas” in Denver to create more affordable housing opportunities. Blighted areas are known to be either desolate or underserved.

The project seeks to serve residents earning between 30% to 60% of the area median income, according to the city’s plan from 2019.

City staff and DURA are working on the plan which would authorize the use of Tax Increment Financing to fund the project. That financing method “allows the Denver Urban Renewal Authority to issue and repay redevelopment bonds by using the increment of increased taxes collected within the district after improvements are made,” according to the City of Denver.

Proposed development plans stirred local neighborhood organizations when the 17th and Newton development was introduced more than five years ago, according to Denverite reports at the time.

Residents worried about increased traffic, lack of parking spots and the taller building blocking sunlight and reducing privacy, according to published reports.

The proposed development is across from Sloan’s Lake and is adjacent to multiple neighborhoods.

Plans show commercial-use space for retail is intended for the lower floors of the 16-story building and in smaller buildings that would surround the property.

City Council must approve a resolution for a public hearing for the project to be considered. Once approved, the public hearing must take place within 30 days after.

It remains unclear when the council will reconsider a public hearing for the property.

“We stand with the city in trying to do everything we can, including maximizing the amount of affordability a project can deliver,” Huggins said. “It’s just a matter of the last few things that need to come together, and they just didn’t come together in time for the Council to approve that resolution.”

In other City Council action Tuesday:

• Councilmembers approved a $4.08 million loan agreement to develop and construct 102 affordable multifamily units, known as “The Irving at Mile High Vista” in the West Colfax area. The Mile High Vista is located only half a mile southeast of the proposed 17th and Newton development.
• The Council approved spending an additional $475,000 to help feed immigrants living in shelters. Denver contracts with Colorado Hospitality Services to provide food at immigrant shelters. Denver’s updated contract with the service adds up to a total of $925,000 needed to provide meals to immigrants living in city-provided shelters.