Denver may spend millions on hotel to shelter unhoused people
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Mayor Mike Johnston's administration wants the option to buy a hotel for $14 million more than what it sold for in 2022 to shelter people experiencing homelessness.
Driving the news: A Denver City Council committee approved a proposal Wednesday that gives the administration a chance to buy a current DoubleTree by Hilton hotel in the northeast part of the city.
Reality check: This doesn't necessarily mean the administration will choose to purchase the hotel, though if it does, the proposal calls for the city to pay $39 million for it — more than the $24.4 million its current owner, Denver Project Owner CP, paid last February.
- Laura Swartz, spokesperson for the city finance department, tells us the previous sale was completed during the pandemic and was purchased as part of a portfolio.
Of note: A separate proposal to lease the 300-bedroom hotel in northeast Denver was also approved Wednesday. It would cost up to $1.25 million and cover 12 months, with up to three additional months.
- The city would pay $83,333.33 a month for rent, and if it chooses to buy the hotel, any rent paid would be used toward the purchasing price.
- The hotel has a 450 total bed capacity and would be securing more beds for Johnston's goal to shelter 1,000 unhoused people. As of Tuesday, the city has housed 168 people.
State of play: Lisa Lumley, director of real estate for the city, told council members the hotel will provide sheltering for people removed from encampments and those who need emergency weather sheltering.
What's next: Denver City Council will consider both agreements for final approval on Oct. 30.