Highlands? Garden Village Denver, Colorado

Highlands’ Garden Village

Project Type: Residential

Case No: C033001

Year: 2003

SUMMARY Located three miles (4.84 kilometers) northwest of downtown Denver, Highlands’ Garden Village is a mixed-use urban infill project built on the site of a former amusement park. The 27-acre (11-hectare) project features 51 single-family homes, 63 rental apartments for seniors, 54 townhouses, 33 cohousing units, and plans to build ten live/work studios for artists, 14,000 square feet (1,300 square meters) of office space, and 82,400 square feet (7,665 square meters) of neighborhood retail uses. The community boasts a number of outdoor amenities, most notably a series of neighborhood parks and gardens that occupy 3.2 acres (1.3 hectares). Highlands’ Garden Village has garnered national attention for its preservation efforts, as well as the site’s numerous “green features,” including recycled wood furniture in the parks and the “Zipcar” share program, which provides compressed, natural gas–powered cars for the use of residents.

FEATURES

Built on the site of the 111-year-old Elitch Gardens Amusement Park The 1926 carousel house is completely renovated and serves as a community pavilion The historic Elitch Gardens have been preserved throughout the site and constitute part of the 3.2 acres (1.2 hectares) of open space The Elitch Theater has been redeveloped into a community arts and cultural center Connection of existing street grids and the addition of 82,400 square feet (7,665 square meters) of traditional main street retail and restaurants Single-family homes and townhouses meet or exceed the guidelines of Colorado’s Built Green Program and are E-Star certified by Energy Rated Homes of Colorado Highlands’ Garden Village

Denver, Colorado

Project Type: Residential

Subcategory: Planned Communities

Volume 33 Number 01

January–March 2003

Case Number: C033001

PROJECT TYPE

Located three miles (4.84 kilometers) northwest of downtown Denver, Highlands’ Garden Village is a mixed-use urban infill project built on the site of a former amusement park. The 27-acre (11-hectare) project features 51 single-family homes, 63 rental apartments for seniors, 54 townhouses, 33 cohousing units, and plans to build ten live/work studios for artists, 14,000 square feet (1,300 square meters) of office space, and 82,400 square feet (7,665 square meters) of neighborhood retail uses. The community boasts a number of outdoor amenities, most notably a series of neighborhood parks and gardens that occupy 3.2 acres (1.3 hectares). Highlands’ Garden Village has garnered national attention for its preservation efforts, as well as the site’s numerous “green features,” including recycled wood furniture in the parks and the “Zipcar” share program, which provides compressed, natural gas–powered cars for the use of residents.

SPECIAL FEATURES

PROJECT ADDRESS

West 38th Avenue and Tennyson Street Denver, Colorado 80202

DEVELOPER

Perry & Rose 910 16th Street Denver, Colorado 80202 303-446-0600 Fax: 303-446-0465 www.rose-network.com

SITE PLANNER

Master Site Plan Calthorpe Associates 1580 Findlay Way Boulder, Colorado 80305 303-554-7605 www.calthorpe.com Site Plan Civitas, Inc. 1250 Bannock Street Denver, Colorado 80204 303-571-0053 Fax: 303-825-0438 www.civitasinc.com

ARCHITECTS

Single-Family Homes and Townhouses Wolff/Lyon Architects 777 Pearl Street, Suite 210 Boulder, Colorado 80302 303-447-2786 Fax: 303-447-2968 www.wlarch.com

Seniors' Apartments OZ Architecture 1580 Lincoln Street, Suite 1200 Denver, Colorado 80203 303-861-5704 Fax: 303-861-9230 www.ozarch.com

Harry Teague Architects 412 North Mill Street Aspen, Colorado 81611 970-925-2556 Fax: 970-925-7981 www.harryteaguearchitects.com

Cohousing Cohousing Company 1250 Addison Street, Suite 113 Berkeley, California 94702 510-549-9980

Synergy Design 917 Cottonwood Circle Golden, Colorado 80401 303-278-1880

LANDSCAPE ARCHITECT

Lee Weintraub Landscape Architecture Community Design 59 Edgecliff Terrace Yonkers, New York 10705 914-965-6540 Fax: 914-965-6546 GENERAL DESCRIPTION

A garden community three miles (4.84 kilometers) northwest of downtown Denver, Highlands’ Garden Village is located on a 27-acre (11-hectare) infill site. Home to the Elitch Gardens, the project features a number of housing types, including single-family homes, cohousing, and seniors’ apartments. Interspersed throughout the community are 3.2 acres (1.2 hectares) of parks and gardens, reminiscent of the former amusement park. The project includes the connection of existing street grids and the addition of 82,400 square feet (7,665 square meters) of traditional main street retail uses and restaurants. Effective recycling and reuse programs have made Highlands’ Garden Village a national model for environmentally conscious development. These programs use wind to generate electricity for community buildings, provide residents with access to two energy-efficient cars, and reuse existing city water, sewer, and stormwater infrastructure surrounding the site.

THE SITE AND ITS HISTORY

The Elitch Gardens Amusement Park opened in 1890 and served as an escape from what was then a seemingly remote, bustling downtown Denver. For over a century, the amusement park offered the public entertainment in the form of carnival rides, live shows, wild animals, and botanical gardens. The Elitch Theater not only was one of America’s longest-running summer showcases, but it also was where the first movies in Denver were shown and where stars such as Grace Kelly and Sarah Bernhardt appeared.

While Elitch Gardens Amusement Park stayed much the same over the years, Denver continued to grow as a metropolitan area and housing was eventually developed around the park. In 1994, the amusement park shut down and a gaping hole was left in what had become a working-class neighborhood. Chuck Perry, a local developer and restaurateur, decided to redevelop the former amusement park into a viable community. Partnering with Jonathan F.P. Rose, a developer based in Katonah, New York, the Perry/Affordable Housing Development Corporation was formed and plans for the Highlands’ Garden Village were developed.

DEVELOPMENT PROCESS AND DESIGN

Rose and Perry bought the Elitch Gardens Amusement Park in 1998 and soon developed a plan for the $50 million mixed-use project. Much of this plan came out of a community-based planning process in which the developers met over 50 times with local residents and groups such as the West Highlands Neighborhood Association, the civic association for the neighborhood that surrounds the development.

While there was some disagreement as to what should replace the amusement park, in the end the planning process turned out to be beneficial. One main point of contention was that the new development would have to include seniors’ housing. Perry and Rose agreed to this and were rewarded by the city of Denver with a density bonus for the project. The major obstacle faced during the planning process was the site’s zoning regulations. It was formerly zoned as A-1, which allows only a few uses such as a prison or an amusement park.

After two years of negotiation, the area was rezoned as a planned unit development (PUD). In Colorado, a PUD is unique in that it provides developers with higher densities that can be changed quickly to respond to demographic conditions and fluctuating housing markets. Original plans for the development called for streets with widths of 30 feet (nine meters) or less. However, during the planning process the city of Denver required the streets to be 36 feet (11 meters) wide, with Perry and Rose eventually settling with the city on a width of 32 feet (ten meters). With narrower streets, Highlands’ Garden Village is able to have wider sidewalks that promote pedestrian traffic, reduce vehicular traffic speeds, and save money on construction costs.

Dismantling much of the old amusement park, including the “Twister” roller coaster, was a priority, but Rose and Perry wanted to retain some aspects that would give the new project an identity and pay tribute to Elitch. The centerpieces of Highlands’ Garden Village are two historic structures from the old park: the century-old, octagonal two-story Elitch Theater; and the Elitch entrance gardens, featuring a 1926 carousel house.

The gardens, the carousel house, and the theater all have undergone major restoration and play important roles in the community. The actual theater building is 5,890 square feet (547 square meters) in size and a “fly building” is attached to it that houses back-of-stage operations. Future development plans include demolishing this dysfunctional structure and replacing it with a smaller, updated fly house measuring 9,700 square feet (901 square meters). The Elitch Theater is used by a variety of performing arts groups and the gardens serve as attractive open space, with the floor of the former carousel featuring a meditative walking labyrinth, designed to the golden mean proportions. The golden mean ratio of 1.68:1 has more than just mathematical implications; it is a ratio that has been used in architecture since classical times and serves to strike a harmonic balance between the constructed and living worlds. The carousel itself, along with most of the rides from Elitch’s, was moved in 1995 when the owners relocated closer to downtown Denver in the Platte River Valley.

The residential units vary in both design and price, making Highlands’ Garden Village a socioeconomically diverse community. The master plan, designed by Calthorpe Associates, strives to blend the new homes and buildings into the existing older neighborhood that surrounds the amusement park. The 51 single-family houses are all sold and contain two to four bedrooms with one to two-and-a-half bathrooms each, with prices ranging from $211,996 to $429,666. They all are built in craftsman and Denver square styles with dormer windows and embellished trim details, and face outward toward existing homes. The houses have front porches and alley-loaded garages, with a few of the residences having wraparound porches. All homes in Highlands’ Garden Village received the five-star rating from the Denver Homebuilders’ Association’s Built Green Program and are E-Star certified by Energy Rated Homes of Colorado. Twenty of the homes have carriage houses built above the garage that can be used as a home office or as living quarters for family members, or rented out to help cover mortgage payments. The carriage units are rented from $600 to $800 per month and measure approximately 400 to 480 square feet (37 to 44 square meters) in size.

The Cottage Hill Senior Apartments comprise 63 rental apartments ranging from $604 to $1,250 per month in a three-story complex constructed around a private courtyard. Currently, 93 percent of the units are occupied, with 40 percent of all the apartments having been designated as affordable units ranging from $450 to $1,065 per month. In addition to seniors’ housing, the project includes an eight-building, 90-unit apartment complex, 54 rowhouses, and plans for ten live/work units intended for artists.

Offering a cost-saving and lifestyle alternative to single-family homes, Hearthstone is Highlands’ Garden Village’s 33-unit cohousing complex. Families live in one- to four-bedroom townhomes, but share certain amenities such as child care, meal preparation, and the 4,800-square-foot (446-square-meter) common house equipped with a gourmet kitchen, a playroom, and dining and sitting rooms. Traditionally, cohousing design calls for front entrances that open onto a community courtyard. In Hearthstone, one of the requests made to the design architect, Katie McKammet, was for a presence on the community’s streetfront. As a result, several of the residences have both front and rear entrances. The homes that face a public street have access from both the front and the rear, while those that front the courtyard have only one entrance and private backyards, or back entrances into their garages. Cohousing units are priced between $153,795 and $267,817, with each house bought under a condominium ownership structure.

Throughout the development process, emphasis was placed on preserving open space and rehabilitating the amusement park’s attractive amenities. In addition to the theater, the gardens, and the carousel, the project includes 3.2 acres (1.2 hectares) of community parks that encourage walking and jogging. Various gardens feature edible plants and in many cases existing trees and plantings were preserved or transplanted. For example, honey locust trees were transplanted around the single-family homes and tulip bulbs were saved for use in the gardens. A number of other, more extensive “green features” have garnered Highlands’ Garden Village national attention: 30 tons (27.2 metric tons) of concrete from the old site was crushed and reused as road base; the project uses alternative energy sources such as wind-generated electricity for parks, civic buildings, and apartment buildings; and various recycled products such as wood, insulation, and siding were used in the construction of the homes and townhouses.

The “Zipcar” share program provides residents with the option of renting one of two 2000 four-door Honda Civics, which run on compressed natural gas. They can reserve a car for periods ranging from one hour to three days using an online reservation system or by telephone. An automobile may be kept longer than three days if arrangements are made in advance. Currently, 13 members are signed up with the Zipcar program, with usage at approximately 418 miles (672 kilometers) and 122 hours a month per car. The program is an attractive option for those who choose not to own a vehicle or who need a second vehicle for short trips.

FINANCING, MARKETING, AND OPERATIONS

Located within an urban renewal area, Highlands’ Garden Village is eligible for city tax increment funds. Over a 20-year period, the project can receive upwards of $4.2 million for sewers, roads, and other infrastructure. This amount is dependent upon property tax and sales tax increases, with property taxes on the average home currently around $1,500 per year. The renovation of the theater, the carousel, and Elitch Gardens will also be reimbursed $4.6 million in tax increment funds.

The total development cost for the project is $90 million, though the property was broken up into smaller parcels, with each piece selling for a price between $10 million and $15 million, to make financing more manageable. The first phase of development included the construction of the seniors’ apartments and the single-family houses. A joint venture with Wonderland Homes, Perry/Affordable Housing Development Corporation purchased the land and used a loan for the development of the single-family residences. The seniors’ and multifamily housing units were financed through a tax-exempt bond offered through the U.S. Department of Housing and Urban Development, a Denver 4 percent home loan, and a Colorado state home loan. Perry sold lots to Wonderland Homes for construction of the cohousing, with Wonderland using a straight construction loan for development of those homes. Wonderland and Perry split the profits from the sales of the cohousing units. Perry/Affordable Housing Development Corporation owns the multifamily and seniors’ housing units, both of which are managed by a third-party management firm.

EXPERIENCE GAINED

In terms of financing, Rose and Perry would not do anything differently. By avoiding “Wall Street–like” money, the project was not rushed and could be developed at a manageable and rewarding pace. Throughout the different phases of development, Rose and Perry were mindful not to build more infrastructure than was required. Constructing roads, sewers, sidewalks, etc., ahead of anticipated home development would have left the project financially strapped. Neighborhood streets throughout the project were originally planned to be no wider than 30 feet (nine meters). During the planning process, the city of Denver required 36-foot (11-meter) widths for the streets, eventually settling for a width of 32 feet (ten meters). By making the streets narrower, developers were able to widen sidewalks, promote pedestrian traffic, reduce vehicular traffic speeds, and save money on construction costs. Developers of Highlands’ Garden Village did not adequately plan ahead to match various models of homes to their respective lots. Rose and Perry left this up to the homebuyers, and the project ended up not having enough design diversity on some streets. PROJECT DATA LAND USE INFORMATION Site area (acres/hectares): 27.39/10.8 Percentage complete: 75

GROSS BUILDING AREA Existing At Buildout (Square Feet/ (Square Feet/ Use Square Meters) Square Meters) Office 0 14,000/1,300 Retail 0 82,400/7,655 Residential 325,000/30,193 475,000/47,127 Parking 116,000/10,776 260,000/24,154 Open space 120,000/11,148 145,000/13,470 Total GBA 561,000/52,117 980,000/91,042

LEASABLE AREA Existing At Buildout (Square Feet/ (Square Feet/ Square Meters) Square Meters) Office net rentable area 0 14,000/1,300 Retail gross leasable area 0 82,400/7,665 Other (civic buildings) 22,000/2,044 22,000/2,044 Floor/area ratio: 0.5 Zoned: 1:1

LAND USE PLAN Use Acres/Hectares Percentage of Site Buildings 13.5/5.5 49.3 Streets/surface parking 8.9/3.6 32.5 Landscaping/open space 4.5/1.8 16.4 Civic buildings 0.5/0.2 7.8 Total 27.4/11.0 100.0

RESIDENTIAL UNIT INFORMATION Floor Area Number Range of (Square Feet/ Sold or Initial Sales/ Unit Type Square Meters) Leased Rental Prices Single-Family Zinnia 1,698/158 8 $250,000–315,000 (3 bedrooms, 2.5 bathrooms) Daisy with carriage 1,512/140 12 $255,000–360,000 (3 bedrooms, 2.5 bathrooms/ 1 bedroom, den, 1 bathroom) Daisy without carriage 1,512/216 7 $274,000–308,000 (3 bedrooms, 2.5 bathrooms) Forget Me Not with carriage 2,331/216 8 $348,000–427,000 (3 bedrooms, 2.5 bathrooms/ 1 bedroom, 1 bathroom) Forget Me Not without carriage 1,858/173 5 $279,000–350,000 (3 bedrooms, 2.5 bathrooms) Iris 1,957/182 6 $274,000–364,000 (4 bedrooms, 2.5 bathrooms) Violet 1,100/102 6 $211,000–270,000 (2 bedrooms, 1.5 bathrooms) Rental apartments 703–948/65–88 90 $604–1,250 Cohousing 1,304–2,114/121–196 33 $154,000–268,000 Seniors’ housing 395–995/37–92 63 $554–1,065 Townhouses Sunflower 1,183/110 14 $190,000–244,000 (2 bedrooms, 2.5 bathrooms) Marigold 1,432/133 18 $207,000–275,000 (3 bedrooms, 2.5 bathrooms) Primrose 1,479/137 6 $225,000–270,000 (3 bedrooms, 2.5 bathrooms)

DEVELOPMENT COST INFORMATION Site Acquisition Cost: $2,416,000

Site Improvement Costs Excavation/grading: $345,000 Sewer/water/drainage: $2,005,000 Paving/curbs/sidewalks: $1,414,000 Landscaping/irrigation: $543,000 Fees/general conditions: $226,000 Dry utilities: $419,000 Open space: $1,541,000 Demolition: $994,000 Environmental: $260,000 Total: $7,747,000

Construction Costs Office: $4,000,000 Retail: $6,000,000 Residential: $57,000,000 Civic space renovation: $1,300,000 Total: $68,300,000

Soft Costs Architecture/engineering: $1,243,000 Project management: $1,736,000 Marketing: $100,000 Legal/accounting: $437,000 Taxes/insurance: $342,000 Title fees: $21,000 Construction interest and fees: $550,000 Operating expenses: $493,000 Total: $4,845,000

Total Development Cost: $83,308,000

DEVELOPMENT SCHEDULE Planning started: July 1996 Site purchased: August 1998 Construction started: October 1998 Sales/leasing started: January 1999 Phase I completed: January 2001 Project completed: December 2005

DIRECTIONS

From Denver International Airport: Take Pena Boulevard to I-70 west. Travel on I-70 west to the Colorado Springs exit. Take 38th Avenue west exit to the right. Go west on 38th Avenue to Tennyson Street.

Driving time: 25 minutes in nonpeak traffic.

Adrienne Schmitz and Clark Mercer, report authors Leslie Holst, editor, Development Case Studies David James Rose, copy editor Joanne Nanez, online production manager

This Development Case Study is intended as a resource for subscribers in improving the quality of future projects. Data contained herein were made available by the project's development team and constitute a report on, not an endorsement of, the project by ULI–the Urban Land Institute.

Copyright © 2003 by ULI–the Urban Land Institute 1025 Thomas Jefferson Street, N.W., Suite 500 West, Washington D.C. 20007-5201 Highlands' Garden Village mixes different product types such as cohousing (at left), multifamily housing (background), and townhomes (at right) to enhance livability and community development. The popular community gardens (foreground) are organized and managed by the homeowners' association. These single-family homes are built in the Denver square architectural style and front on the Mary Elitch Memorial park. Hearthstone is Highlands' Garden Village's cohousing complex. The homes line a central courtyard and some feature private backyards. To re-create the historic garden feel of the former amusement park, the developer used native, drought-resistant plants wherever possible to create gardens that enhance the architecture. The developer constructed a walking labyrinth (for meditation purposes) on the floor of the 1926 renovated carousel pavilion. The open-air pavilion is used for community functions and can be rented for private events. Site plan.