Beginning in 1989, with the decision to build the new Denver International Airport, a group of civic and community leaders began planning the future of the Stapleton property. Two private organizations were at the forefront of efforts to ensure the quality of Stapleton's redevelopment: Stapleton Tomorrow and the Stapleton Redevelopment Foundation.

Planning for the End and the Beginning
With the end of aviation activities at Stapleton all but certain, planning for the future of the property began when a group of 35 citizens undertook a large-scale community planning exercise known as Stapleton Tomorrow. Over the next two years, Stapleton Tomorrow sought the opinions of a broad spectrum of Denver residents about how to redevelop Stapleton. Creation of jobs, open space, and recreational and cultural opportunities emerged as predominant concerns.

In 1990, a group of civic and business leaders created the Stapleton Redevelopment Foundation. Financed by private philanthropy, this non-profit group was formed as a civic vehicle to work in partnership with the City administration. Its aim was simple - maximize the public benefits from redevelopment of the Stapleton site. Private funds from corporations, foundations, and individuals supported the activities and redevelopment objectives of the Foundation.

Stapleton's Tomorrow's work concluded in 1991 with the creation of a concept plan for Stapleton re-use. The plan emphasized economic development; benefits to adjacent neighborhoods; enhanced environmental quality; high standards of urban design; educational and cultural opportunities; and the generation of revenues to support airport objectives. The Denver City Council adopted the Stapleton Tomorrow concept plan in June 1991 as part of the Denver Comprehensive Plan.

In 1993, The City and County of Denver entered into a partnership agreement with the Foundation. Working with elected City officials and staff, the Foundation agreed to fund and guide creation of a development plan and the physical and financial development program for the Stapleton site.

The Foundation also agreed to assist the City in defining a long-term management structure for the Stapleton redevelopment program and in pursuing desirable first-phase projects and demonstration opportunities.

To oversee creation of a plan for the redevelopment, a Citizens Advisory Board (CAB) made up of 42 members representing a variety of perspectives and constituencies including business, neighborhood, and professional associations was appointed by Denver’s mayor.

In 1995, the Stapleton Development Plan was published. The development plan called for new neighborhoods for a new generation and a desire to reclaim and recycle urban land, creating a new standard of living within Denver’s city limits. Stapleton refines the balance between home and workplace, marketplace and green space, private life and public involvement.

With the completion and adoption of the Stapleton Development Plan, three major steps moved Stapleton from the planning to the action stage: establishment of the Stapleton Development Corporation (SDC), signing of a Master Lease and Disposition Agreement (MLD) between SDC and the City, and preparation of a blight study by SDC.

Stapleton Development Corporation
In November 1995, Denver Urban Renewal Authority (DURA) signed a cooperation agreement to create the private, nonprofit Stapleton Development Corporation (SDC) as a vehicle to lease and sell Stapleton Property. SDC has 11 voting directors of which DURA appoints two directors and the Mayor of Denver appoints nine. Denver City Council must confirm all nine of the City's voting directors. There are five additional ex-officio directors - the Manager of Aviation, the City Council member whose district includes the Property, a member of the Citizens Advisory Board (CAB), one person each representing Commerce City and Aurora respectively.

SDC was created to serve as the primary vehicle for selling and leasing Stapleton and SDC entered into a master lease and disposition agreement (MLD) with the City in July 1998. The MLD gives SDC the responsibility to maintain and lease Stapleton for 15 years, an option to purchase the property, and the authority to sell parcels for uses consistent with the Stapleton Development Plan.

Two years after its creation, the SDC contracted for a study to determine whether the Stapleton property should be considered blighted and appropriate for designation as an urban renewal area. This was the first step to determine Stapleton's eligibility for tax increment financing (TIF), a mechanism by which the increase in property tax and/or sales tax revenues generated by the redevelopment can be used to help finance infrastructure construction. The new tax revenue that is created must be used for infrastructure improvements that have a public benefit and that support the redevelopment effort

The MLD was amended in 1999 to reflect revisions necessitated by the FAA and an agreement with the airlines. The airline agreement settled a dispute the airlines filed with the FAA and, among other things, provided for agreed upon sources of funding to pay certain costs associated with environmental remediation, demolition, and other disposition costs. Additional amendments to the MLD are anticipated so that it will conform to the purchase agreement between SDC and Forest City, the master developer.

After entertaining proposals to develop the remaining land at Stapleton in 1998 the SDC conducted a competitive process to select a master developer. SDC chose this approach for several reasons. A master developer for the entire parcel would promote development over time for the entire parcel, not just its edges.

In November 1998, SDC selected Forest City Enterprises, Inc. a family owned and publicly traded national real estate company with a commitment to mixed use urban infill projects, to be its development partner. Forest City offered experience in all aspects of development, access to capital, and national marketing expertise as well as commitment to affordable housing, sustainable development, minority participation, and other principles of the Stapleton Development Plan.

Forest City entered into an Exclusive Right to Negotiate with SDC for the purchase of Stapleton. SDC and Forest City finalized a purchase agreement in February 2000 that will obligate Forest City to buy all developable land at Stapleton. As a condition of selling the balance of the Stapleton property to a master developer, the Denver Department of Aviation committed to selling property that was environmentally remediated, substantially demolished, and zoned for redevelopment. The commitments, along with substantial understandings regarding future financing of infrastructure development on the site, are intended to be included in a new set of Master Lease and Disposition Agreements between SDC and the City.

The following are the principle terms of Forest City's Purchase Agreement with SDC:

· FC will purchase 2,935 developable acres at the appraised value of $79.4 million, increased annually by the Consumer Price Index. Bowes and Associates appraised the Property as of December 17, 1999. The appraisal assumed that there would be approximately 1,100 acres of regional parks and open space in addition to neighborhood parks, and that the land would be environmentally remediated, the appropriate buildings demolished, and runways removed.

· FC will purchase the Stapleton Property over a 15-year period, acquiring at least 1,000 acres every five years with a minimum purchase of 200 acres in 2000

• ·FC will pay a $15,000-per-acre "System Development Fee" totaling $44 million to be used by the Stapleton Metropolitan District to construct and develop regional parks and open space at Stapleton. These payments are in addition to the $79.4 million purchase price.

• FC will develop Stapleton according to the standards set out in the Stapleton Development Plan and according to performance standards and community participation standards set forth in the purchase agreement.

• FC will pay a $5 million down payment required for liquidated damages if default occurs or to be applied as the final purchase payment if no default occurs. The $5 million down payment will become non-refundable to Forest City when the:

1. Federal Aviation Administration has approved the appraisal and released their reversionary interests in Stapleton;

2. Title 32 metropolitan districts have been formed;

3. The Urban Renewal Plan has been approved and the tax increment financing authorized; and,

4. City Council has approved proposed changes to the MLD.

• FC will provide the City and SDC with a development schedule, which will be used by the City to schedule environmental remediation and demolition.

Forest City will determine which parcels at Stapleton are to be purchased and in what order, so long as the five-year milestones are met. Before Forest City is obligated to buy land at Stapleton, the City must:

• Complete zoning for the entire Stapleton site;

• Establish a tax increment financing mechanism for funding trunk infrastructure; and,

• Create Title 32 metropolitan districts to finance intract infrastructure.

Before Forest City is obligated to buy a particular parcel of land at Stapleton, the City's Department of Aviation must complete:

• Environmental remediation on that parcel; and,

• Demolition on that parcel.

Virtually all of the information contained in this article was obtained, with permission, from the StapletonDenver website.  SLDT