Denver Mixed-Use Projects Face Labor, Cost, Permitting Obstacles
High-profile projects in the Denver pipeline are more than just pipe dreams but face significant challenges as they get off the ground, according to panelists at Bisnow’s Denver Sports and Entertainment event on Nov. 7.
Several large mixed-use projects, most anchored by major venues or featuring entertainment plans, are in planning and development stages across the city. All of them, from the National Western Complex up north to The River Mile that will rise where Elitch Gardens now sits, can expect to face significant workforce shortages, affordability issues and permitting obstacles that could slow progress.
Securing skilled workers is already a major challenge in both daily operations and new developments, said Matt Bell, senior vice president of venue operations at Kroenke Sports & Entertainment.
“One of the biggest challenges we have as a city is workforce development,” Bell said, saying he sees it every day in the culinary hospitality space. “We struggle to fill some current, some critical roles to keep these buildings moving. So as we continue to add different … types of development, the people to power those venues and to make those buildings work on a day-to-day basis is a concern.”
KSE owns and operates Ball Arena and is the company behind an expansive redevelopment surrounding it that was just approved by the Denver City Council.
The issue of limited construction labor is worsened by Denver’s competitive development landscape, said Brad Wentz, a construction executive at Turner Construction. He pointed out that people resources are already stretched thin.
“Where we are now, it’s tough to get people to do what we need to do,” Wentz said, adding that these challenges could intensify as more projects enter the pipeline. Without enough skilled workers, developers may struggle to keep up with construction demand, potentially delaying critical phases of downtown’s transformation.
Rising costs threaten the small, independent businesses that shape the River North Art District’s neighborhood fabric, said Kevin Preblud, chief operating officer of Exdo Development, which operates an entertainment venue in the area.
“Small businesses are getting priced out,” Preblud said, pointing to property tax hikes, insurance costs and minimum wage increases.
Denver’s permitting process is another challenge the panelists discussed. For large projects like those planned around Ball Arena, navigating the city’s permitting requirements can become a lengthy, resource-intensive process, said Sadie Cline, principal at Portland, Oregon-based ZGF Architects, which is working on the KSE project.
Cline said it will require significant coordination to streamline approvals and keep construction timelines on track despite strong city support for the development.
“We’re about to hand them something they’ve never been handed before,” Cline said.
Cline pointed to the importance of creating spaces that attract a wide range of residents and visitors, including young families. She said that there's an existing citywide shortage of childcare options. Addressing these gaps, she said, would make Denver’s developments more inclusive and sustainable in the long term.
The panelists mentioned Chicago’s Wrigleyville and The Battery in Atlanta as success models. These districts have become destinations by combining sports facilities with residential, retail and entertainment options that attract people every day of the week, the panelists noted.
For Denver’s mixed-use developments to thrive, the panel agreed, collaboration among developers, the city and community groups will be essential. Workforce shortages, affordability and a lengthy permitting process are real challenges, they said, but can be addressed through innovative solutions and ongoing coordination.
