Monday, October 22, 2007

A National Media Triple Play for Denver in 2007

The Metro Denver Area has achieved a national media triple play in 2007 with three big media events each showcasing a different dimension of the Mile High City's character:

  • The year started out with a bang when Denver was chosen over New York to host the 2008 Democratic National Convention 100 years after the last time the city hosted a national political convention (see my July 18, 2007 blog entry on the opportunities and risks of the hosting the Democratic Nation Convention http://aviewoftherockies.blogspot.com/2007/07/con.html).
  • Then in the early Summer, Georgia resident, Andrew Speaker, who was infected with a dangerous strain of tuberculosis (TB), was brought to Denver's world-famous National Jewish hospital for treatment.
  • Finally, the Rockies are in the World Series for the first time in franchise history.

Denver's selection as host city for 2008 Democratic Nation Convention helps solidify the "Queen City of the Plains' " role as the "Capital of the Rocky Mountain Empire," the eight interior western states of Colorado, Arizona, New Mexico, Idaho, Montana, Utah, Wyoming and Nevada. In 2004 these states, which represent 44 electoral votes, all voted for George Bush but they are emerging as potentially key swing states which could help decide future presidential elections. This convention, the resulting media attention and the anticipated competitiveness of the Rocky Mountain Region in the 2008 Presidential Election are likely to dramatically raise the Metro Area's national and international profile, increase the region's national political influence, and showcase the exciting changes and new construction which have come to downtown Denver in recent times.

When Andrew Speaker was sent to Denver's National Jewish Hospital (http://www.njc.org/), it helped profile Denver's role as a center for high tech research and innovation and world class scientific resources. For several weeks there were regular reports on the national broadcast and cable networks live from National Jewish Hospital with press conferences being held by National Jewish Hospital Doctors on Mr. Speaker's condition. Hospital Doctors even corrected the diagnosis, originally provided by the Centers for Disease Control, of the precise strand of TB Mr. Speaker was suffering from. The fact that National Jewish Hospital was widely reported to be the best respiratory hospital in the world and the preferred location for treating the worst forms of TB was a tremendous prestige boost for the Denver Metro Area.

Finally, the Rockies surge to the World Series highlights Denver's position as a sports town par excellence and a very exciting place to live and do business in. The metro area is one of only 13 such areas to have a professional sports “grand slam” with teams in each of the four major leagues. Metro Denver has the smallest population of any metro area with a grand slam. Additionally, the Mile High City is one of only four cities which have a team from each league located within the city’s municipal border. The three main sports venues in Denver --Invesco Field at Mile High, the Pepsi Center, and Coors Field are all located within a few miles of each other in a compact area near the Central Business District. The Rockies and their home venue Coors Field symbolize Denver's emergence as a "major league city" and the provided an economic catalyst for the redevelopment and revitalization of Lower Downtown Denver (LoDo).

Consider for a moment the professional sports contests being hosted over a five day period in Denver starting this Saturday October 27:

  • Saturday October 27, Game 3 of the World Series, Rocks v. Sox, (national TV Fox);
  • Sunday October 28, Game 4 of the World Series, Rocks v Sox, (national TV Fox) and Colorado Avalanche v. Minnesota Wild (local TV);
  • Monday October 29, Game 5 of the World Series, if required (national TV Fox), & Denver Broncos v. Green Bay Packers (national TV ESPN Monday Night Football);
  • Tuesday October 30, no games in Denver
  • Wednesday October 31, Denver Nuggets v. Seattle Supersonics (national TV ESPN).
Over the five days between October 27 and October 31, there are six different games occuring in Denver, featuring all four Denver major professional sports teams, of which 5 are being shown on national telecasts. The highlight, Monday October 28, could see downtown Denver filled with more than 126,500 ticket holders and countless thousands of partying fans as the Rockies and the Red Socks and the Broncos and Packers play simultaneous nationally televised World Series and Monday Night Football games. This could turn out to be the single greatest night of live sports ever in Denver and the greatest five day stretch. Thank goodness for the breather on Tuesday October 30 before the Nuggets complete the stretch.

Saturday, October 13, 2007

Protecting the View Plane at Coors Field Through Transfer of Development Rights

As a native Coloradan, its been exciting watching the Colorado Rockies catch fire and roll through the the end of the baseball regular season and beginning of the playoffs. My vantage point in the New York Metro Area is particularly interesting because baseball is so socially and culturally important here.

During this same time period, I have also been following the intense debate about protecting the views of the Rocky Mountains seen from Coors Field. Given that the title of this blog is "A View of the Rockies," I feel compelled to comment on this issue.

From Denver media accounts, I understand that Bill and Paula Leak, long-time owners of the Light Bulb Supply Company at 2010 Delgany Street want to sell their property to a real estate developer. Much of the value of their property to a developer derives from its location and the fact that it could be zoned for a 14 story building. However, if a building that tall is built on the property, it could seriously degrade views of the Rocky Mountains from from parts of Coors Field such as the view beyond the left field wall above the third base line from Section 22 on the club level. (See, for example this story from the Rocky Mountain News, http://www.rockymountainnews.com/drmn/real_estate/article/0,1299,DRMN_414_5717928,00.html


Figures 1: View of Coors Field at Sunset with the Rocky Mountains in the Background (note this photograph is for illustrative purposes only and is not intended to reproduce the view plane being discussed in this blog entry).


Photograph from http://www.baseballpilgrimages.com/national/colorado.html

The views from Coors Field create a unique sense of place in the stadium and are an important amenity for the Denver Metro Area, helping to define and communicate what is unique and wonderful about region --a thriving urban scene in close proximity to one of the most spectacular mountain ranges in the world. As the baseball Rockies make their run through the playoffs this year and national telecasts show views of the mountains from Coors Field, it provides enormous promotional value for the Metro Denver Area.

This is a classic conflict between private property rights and the public interest. These issues can be very thorny and difficult to resolve in a way that is fair to both parties and is consistent with legal and economic principles. My guiding framework for resolving these types of conflicts is to use the minimum of amount of government power needed to resolve the issue and to establish market-based solutions whenever possible.

One solution, advocated by some neighborhood residents, would be for the City of Denver to establish a view plane ordinance which restricts the height of buildings near Coors Field. The problem with this idea is that it is unfair to the Leaks who have been present at this location for many years before Coors Field was built, running a business that generated economic value for the city when the neighborhood was extremely underutilized. The Leaks have a legitimate right to profit from the area's increase in property values and a simple view plane ordinance by itself could be construed as an unconstitutional "taking" of their property without providing just compensation.

Alternatively, the Denver Metropolitan Major League Baseball Stadium District, a public entity, could purchase the Leaks' land and would then control future development there. The problem with this idea is there are other properties which could also be developed which might cause view obstructions at Coors Field and this precedent could encourage private interests to attempt to coerce metro area tax payers into buying their property at inflated prices, even when there are no near-term development prospects.

However, there is a clear and obvious compromise to resolve this issue --the combination of a view plane ordinance with the use of Transfer of Development Rights (TDRs) also referred to as Transferable Development Rights. This idea was mentioned in a very thoughtful article by Bob Reuteman in the October 13, 2007, Rocky Mountain News (http://www.rockymountainnews.com/drmn/business_columnists/article/0,1299,DRMN_82_5721588,00.html).
TDRs, commonly known as "air rights," allow the owners of a low-rise property, built shorter than maximum zoning would normally allow for, to sell the right to build additional stories to a developer who wants to build a structure at another location that is taller than is permitted by that site's zoning.

TDRs can be a powerful tool for historic preservation and economic development. For example in New York City where TDRs are commonly bought and sold, the sale of air rights from a near-by church, allowed the 55 story Millennium Hotel to be built across the Street from the World Trade Center, bolstering the church's endowment and ensuring its survival in the high cost environment of the lower Manhattan commercial district near Wall Street. Additionally, Broadway Theatres in Manhattan have sold their TDRs, for use in near-by high-rise developments, preserving the theaters' economic viability as low rise, special use buildings in a neighborhood with some of the highest land prices in the world (See Figure 2).

Figure 2: In 2006, Developer SJP Residential Agreed to Purchase the Air Rights from the Al Hirschfeld Theatre in New York, Pictured Below, to Increase the Permitted Height of its 42 Story Condominium Project in Manhattan.


Photograph from Al Hirschfeld Theater entry in Wikepdia.


In the case of protecting the view plane from Coors Field, buildings in the view plane could be limited to six stories or less and property owners could be granted TDRs for the additional eight stories which they normally would have been entitled to build. Then owners like the Leaks could sell those TDRs to other developers in Denver who want to construct taller building in parts of town where view planes are less important.

According to Bob Reuteman, there is already an allowance for TDRs in the Platte Valley in the Denver Municipal Code. This code should be carefully examined and, if necessary, modified to create enough economic value for the Leaks and other property holders near Coors Field to be able to recover the full economic loss they suffer from having their properties height restricted to protect the Coors Field views. For example, in some jurisdictions, TDRs have limited value because they can only be sold to neighboring or adjacent sites and can not be marketed to developers across town. In the Coors Field case, the City of Denver needs to permit the TDRs to be marketed to a wide enough area in downtown Denver and streamline the approval process to ensure that their value is high enough to adequately compensate impacted landowners.

This is a winning, taxpayer friendly, compromise solution which balances individual private property rights with the public interest and minimizes harmful government interference in the workings of the private market.

Lets hope the baseball Rockies can also find a winning solution.

Sunday, October 7, 2007

Re-establishing a Chinese Cultural and Historical District in LoDo

As I pointed out in my September 30th blog entry, the LoDo block bordered by Market, Blake, 20th and 21st Streets was the final location of Denver's Chinatown. The Chinatown buildings were torn down in 1940 and today the area remains underutilized despite the fact that it is prominently located across the street from Coors Field. See photos in Figure 1 below.

Figure 1: Various Perspectives on the Underutilized Block Bound By Market, Blake, 20th and 21 Streets







The Denver Infill web site, written by Ken Schroeppel, also points out how underutilized this site is: (http://www.denverinfill.com/block_pages/northeast_downtown/block_037.htm)

"Isn't it ironic that a block directly across the street from Coors Field, a
facility that is hailed as the great facilitator of LoDo redevelopment, a block
that sits facing the front door of our major league baseball stadium, would
remain, ten years later, as a weedy, litter-filled, vacant lot? Most of
the Blake Street side of this block is owned by Public Service Co. of Colorado
(Xcel Energy) who also owns the electric-substation-wrapped-in-brick at the
corner of 21st & Market. Is there a reason they haven't sold this
property or redeveloped it at great profit? Are they holding it for some
future electric substation expansion project? Is this the best use of this
particular vacant land? Why must we have an ugly, weed-filled, vacant lot
across the street from the grand entrance of our beloved Coors Field?"

Denver Infill description of Block 37 in Northeast Downtown Denver

I am thinking that this site should be redeveloped into a Chinese Cultural and Historic District which would pay homage to the history of Denver's Chinatown and promote economic and cultural linkages between Denver and the Pacific Rim. I would envision this project having public, private and non-profit components. I am not sure of the exact mix of land uses for this site but they could include outdoor public sculpture, a museum/cultural center, retail, food service, and economic development/trade promotion services.

Over time, 20th Street between Market and Lawrence could evolve into an Asian cultural hub with the Japanese American cultural center, Sakura Square (at 20th and Lawrence Streets), at one end and the Chinese Cultural and Historic District at the other end. This idea is consistent with many of the objectives in the 2007 Downtown Denver Plan(http://www.downtowndenverplan.org/) such as Chapter 3, C4b "Encourage businesses that reflect ownership of and cater to culturally diverse markets such as Sakura Square," the idea of redeveloping Arapahoe Square as a densely populated mixed use neighborhood, "Cultivating a Mosaic of Urban Districts," and providing a pedestrian oriented neighborhood linkage between the Ballpark neighborhood and Arapahoe Square.

Saturday, October 6, 2007

A Family Connection to Lower Downtown Denver

As a follow up to my blog "Remembering the Destruction of Denver's Chinatown..." from last Sunday I wanted to write a short entry about my family connections to Lower Downtown Denver. After WWII, in approximately 1945, my maternal Grandfather, Fred Hosken, and Uncle, Ed Hosken, purchased the Refrigeration Service Company (RSC).

RSC was located at 1509-1515 Blake Street near the corner of 15th in LoDo for approximately 10 years until they moved to a York Street location north of Downtown Denver. At the time, Blake Street was part of Denver's Skid Row and every morning when they opened up the shop they had to chase homeless people away from the entryway. This portion of Blake Street had also been part of the original Chinatown District in Downtown Denver (See Areas "a" and "d" in Figure 1 below in the September 30th blog entry on Denver's Chinatown).

Of course, this area is now part of trendy LoDo. The current street address of the old RSC building is now 1517-21 Blake Street and houses Wahoos Restaurant on the ground floor and offices on the upper floors.

Contemporary Photograph of 1517-1521 Blake Street, former location of Refrigeration Services Company in LoDo.




Sadly, both my Grandfather and Uncle have passed away so I can't ask them for stories about the old neighborhood.

Sunday, September 30, 2007

Remembering the Destruction of Denver’s Chinatown and Avoiding the Mistakes of the Past

Remarkably, today there is no evidence that Chinatown ever existed in what is now the Lower Downtown (or LoDo) Historic District—apart from a small plaque placed by Lower Downtown District, Inc., on the site of a building at 20th Street between Market and Blake [http://www.lodo.org/walking_tour/hopalleychineseriothtm.htm]. Indeed, it would be difficult to imagine that LoDo, with its high-priced condominiums, upscale boutiques, and gentrified neighborhoods, once housed a thriving working-class Chinese-American community.”

From “History of and Memory: The Story of Denver’s Chinatown,” William Wei in Western Voices: 125 Years of Colorado Writing, Colorado Historical Society, 2004

A View of the Rockies supports urban infill and redevelopment efforts in Denver and believes that making Denver a denser, more transit-oriented city will promote the metro area’s physical, economic, cultural, environmental and social well being. Of course these changes to the built environment need to made in a way that is respectful to the cultural, historical and architectural context of the neighborhoods in which they occur. As we promote and celebrate the exciting changes that are happening in Denver today, we should always keep in mind that we want to avoid the mistakes of the past by preserving historically and culturally important places.

Let’s also keep in mind that building and maintaining a unique “sense of place” and promoting cultural and demographic diversity are keys to making cities attractive places to live, work and visit. These benefits enrich the city for residents, keep people from moving out to the suburbs, attract young, creative knowledge workers who crave idiosyncratic urban environments, draw in tourists and convince business travelers to stay over for the weekend to explore the city.

When I visited Denver a few weeks ago I spent time researching the history of Denver’s Chinese population in Lower Downtown and also exploring the Five Points neighborhood, the historic, cultural and economic center of Denver’s African American Community (more on Five Points in a later blog entry).

Many cities have destroyed or damaged unique urban neighborhoods in the name of “blight removal,” “slum clearance” and “urban renewal.” These neighborhoods were disproportionately populated by minority and lower income communities. Examples include the Fillmore District in San Francisco and the Hill District in Pittsburgh, which were vibrant regional centers of African American life. In Denver, urban renewal impacted many neighborhoods and communities. In this blog I focus on Denver’s Chinese district in Lower Downtown, which was chauvinistically known as “Hop Alley.”

Figure 1: Map of the Chinese Community in Lower Downtown Denver


Figure 1 from Master’s Thesis of Gerald E. Rudolph at Denver Public Library.


This district was originally located between Wazee and Blake and 15th and 17th Streets (see area "A" in Figure 1 above) but around 1900, the Chinese settlement moved to the alley between Blake and Market between 20th and 21st Streets. (see area “E” in the Figure 1 above and Figures 2a-c below). Also visit http://www.denvergov.org/Portals/142/documents/BallparkSummary.pdf ).

Figure 2a: The Alley where Denver’s Chinatown was located between Blake and Market looking from 20th Street toward 21st Street in 1929.





Figure 2b: Group of People in Alley Between Blake and Market Streets in 1920


Figure 2c: Denver's Chinatown in the Alley Between Market and Blake and 20th and 21st Streets.



Figures 2a-c from the Photography Collection of the Western History/Genealogy Department at Denver Public Library. Copyright © 1995-2007

The Chinese community began arriving in Denver in substantial numbers in approximately 1870 and worked in railroad construction, gold mining, clothes laundering and other occupations. From the beginning, the Chinese suffered from hostility and discrimination including an infamous race riot on October 31, 1880 where one laundry worker, Look Young, was lynched and tens of thousands of dollars of damage was done to Chinese-owned property. The local press engaged in yellow journalism, writing sensationalized stories about opium dens, Tong wars and other vices ascribed to the Chinese population.

Despite these injustices, Denver’s Chinese community persevered and developed a culturally unique micro-neighborhood in Lower Downtown Denver. Although the neighborhood’s population was never as large as San Francisco’s Chinatown (estimates of peak population range from 1,000 to 3,000 people), it was a vibrant, culturally and historically distinct district which made contributions to early Denver’s history, economy and culture.


According to Sanborn Fire Insurance Maps from Denver in the early 20th Century, Denver’s Chinatown contained residences, businesses, retail stores and other Chinese-owned properties. According to William Wei, as the Chinese population grew larger, the Chinatown district began to offer imported speciality Chinese products and provided a home for Chinese doctors, butchers, cooks, cigar makers and grocers, adding vibrancy and culture to Denver and bringing tourists to the city.

In 1882, the U.S. Congress passed the Chinese Exclusion Act which prevented new Chinese immigrants from entering the United States. Over time this Act caused the Chinese population of Denver to decline. In 1940 many buildings in the near-empty Chinatown were razed “before the army of social betterment…under the orders of Lyle D. Webber, chief city building inspector,” (Denver Post, June 14, 1940, page 1) forcing the remaining Chinese population to disperse. According to The Denver Post, the condemned property, from 2021 to 2047 Market Street ,was owned by Chinese-American families up until the time the buildings were destroyed.


Figure 3: Headline from June 14th 1940 article in The Denver Post.






Today all that remains of Denver’s Chinatown neighborhood are memories and photographs. After the buildings which made up Chinatown were demolished, the alley between Blake and Market and 20 and 21st Streets, which was once the heart of the Chinese district, was filled in by the construction of warehouses and industrial buildings almost as if to permanently prevent the Chinese from ever returning to this location. Note, in the contemporary photograph in Figure 4 below, the alley is blocked by the large red brick "Public Storage" warehouse which was built across the right of way where the alley previously ran.



Figure 4: Contemporary Photograph looking from 20th Street toward 21st Street, where the Chinatown Alley Once Ran Between Market and Blake Streets.






The alley between Market and Blake Streets still exists between and 19th and 20th and 21st and 22nd Streets providing a hint as to what the alley would have looked like between 20th and 21st Streets if it was still in existence today. See Figures 5 and 6 below.




Figure 5: Contemporary View of Alley Between Market and Blake Streets Looking From 20th toward 19th Street.




Figure 6: Contemporary View of Alley Between Market and Blake Streets Looking From 21st Toward 22nd Street.




Ironically, today many of the lots which contained the buildings which made up the Chinatown district are vacant or underutilized as is demonstrated by the contemporary photograph (Figure 7) below of the block between Market and Blake and 20th and 21st Streets. We lost a unique historical and cultural neighborhood and more than 65 years later we still don’t even have much to show for it.

Figure 7: Contemporary View of Underutilized Property on Blake Street Street from 21st Street Looking Toward 20th Street Where Chinatown Buildings Once Stood.




If the neighborhood had been left architecturally intact, it is difficult to say if Denver’s Chinatown would have organically rejuvenated itself as new cohorts of immigrants arrived in Denver or would have dwindled out of existence? If the neighborhood had survived, imagine how much more interesting and vibrant LoDo would be with a thriving Chinese-American economic and cultural district located across Blake Street from Coors Field? Sadly we will never be able to conclusively answer those questions because the neighborhood was destroyed.


As we celebrate Halloween this year, let’s remember that it will be the 127th anniversary of Denver's infamous anti-Chinese riot and more than sixty-seven years since the physical buildings of Chinatown were destroyed. We can use these memories to guide us in future efforts to preserve and protect Denver's historically and cultural important neighborhoods as the city is redeveloped and reinvigorated.

The following sources were used in this blog entry: The Denver Post, “Denver ‘Chinatown’ Ordered Torn Down,” June 14, 1940,” and “Hop Alley, Tong War Now Dim Memories," April 26, 1949; The Chinese in Colorado, 1869 – 1911, Master’s Thesis of Gerald E. Rudolph at the University of Denver, August 1964; “History of and Memory: The Story of Denver’s Chinatown,” William Wei in Western Voices: 125 Years of Colorado Writing, Colorado Historical Society, 2004. Denver Sanborn Fire Insurance Maps from June 1912, updated 1925, Volume 2, Map 183 and 184. Denver Sanborn Fire Insurance Map from 1929, updated 1961, Volume 1, Map 183. Special thanks to Bruce Hanson, reference librarian in the Western History and Genealogy Department in the Denver Public Library main branch who helped me uncover many of these sources.

Sunday, September 23, 2007

Relatively Low International Air Traffic at DIA: Part II

In my September July 13th and September 5th blog entries I discussed the fact that Denver International Airport (DIA) (the 5th busiest airport in the U.S.) “punches above Metro Denver’s population weight” (the 19th largest consolidated metropolitan statistical area (CMSA)) in the United States). However, in my September 5th entry I also pointed out that, domestically, DIA is the 4th busiest airport but for international passengers DIA “punches below Denver’s population weight” because it is only the 22nd busiest airport for international passenger originations. In this blog entry I explore the reasons underlying this dearth of international passengers at DIA.

To validate the data cited earlier on DIA international originations, I reviewed the U.S. Department of Commerce, Office of Tourism and Travel Industries (http://tinet.ita.doc.gov/ ) data on overseas visitors to select U.S. cities. This data is based on the Survey of International Air Travelers (In-Flight Survey) Program and the Visitor Arrivals Program (I-94 Form). According to this data, Denver is the 28th most popular City in the U.S. for international visitors.

I theorize that there are four primary interrelated factors which drive metro areas’ international air traffic density:
1) the location of metro areas within the United States relative to international destinations;
2) the absolute number of U.S. metro area residents with ethnic ties to overseas destinations;
3) the amount of international business linkages between overseas destinations and U.S. metro areas;
4) the amount of tourism between domestic metro areas and overseas destinations.

One of the reasons Denver ranks so high for domestic air traffic is because it is centrally located in the western United States between the large cities of the west coast and the mid-west making it an ideal domestic air hub. However, from an international air traffic perspective, hub cities in the United States tend to be located on the U.S. coasts, closes to the international destinations they serve as a hub for. For example, New York is a large hub for transatlantic European flights, Los Angeles for transpacific destinations and Miami for flights to Latin America, the Caribbean and South America.

Additionally, cities with large absolute numbers of ethnic residents with strong ties back to ancestral homelands have a ready made demand for direct international flights and are likely to have high international flight densities. The City of Denver which is a reasonable proxy for the Metro Denver area as a whole, has the 24th highest percent of foreign born population among U.S. cities. See Table 1 below.

Given that the Denver Metro Area is the 19th largest area in overall population, Denver does not have a large absolute number of foreign born residents driving demand for international flights compared to larger metro areas with higher percentages of foreign born populations.

Table 1: Large Cities Ranked by Percent of Foreign-Born Population in 2002



(Source: http://usgovinfo.about.com/cs/censusstatistic/a/foreignborn.htm)

Another key factor in driving international air traffic to U.S. metro areas is international business linkages between overseas destinations and U.S. metro areas. For example, New York City’s status as a global financial capital clearly drives demand for international air flights to and from New York. One possible proxy for measuring international business linkages is the size and number of multi-national corporations with headquarters located in an area. The State of Colorado is ranked 13th highest among the states in terms of Fortune 500 companies headquartered in the state (most of the Fortune 500 companies in Colorado are in the Denver Metro Area).

Table 2: States Ranked by Number of Fortune 500 Headquarters in 2007



(Source: http://money.cnn.com/magazines/fortune/fortune500/2007/states/CA.html )

Although I have not found good hard data on Denver’s ranking as an international tourist destination compared to other U.S. metro areas, some broad conclusions can be drawn. With its ski industry and year round alpine recreation amenities, Metro Denver and Colorado have a substantial tourism industry. However, Metro Denver is not as big a draw as coastal metro areas in states like California, New York, Florida, and Massachusetts.

Given, Denver’s land locked geographic position in the Western United States, its relatively low absolute number of foreign born residents compared to larger cities and other factors cited above, it is not too surprising that Denver has a relatively low density of international air traffic. There is probably not a “magic bullet” for Denver to rapidly increase the number of international destinations that are served by DIA. Instead, over time, as the Denver economy grows and develops additional international linkages I predict there will be a slow but steady incremental gain in international air traffic ultimately resulting in direct international flights between Denver and the Pacific Rim and additional cities around the world.

If I am missing any of the key reasons for DIA’s relatively low international flight density please send me a comment or email.

Tuesday, September 11, 2007

The Global Credit Squeeze and Metro Denver Real Estate Development

I am doing a short blog entry this week because I am headed to Denver tomorrow for a visit with family and friends and to spend time enjoying the Denver Metro area and exploring new developments around the region. This should give me lots of new material for future blog entries.

I am very excited about my visit to Metro Denver but wish I had a more optimistic blog topic than the one I am thinking about today: Will the global credit squeeze derail any of the large privately financed development projects underway in Metro Denver?

Today’s Rocky Mountain News reports that German lender HypoVerinsbank has pulled its $175 million construction loan for Spire (http://www.spiredenver.com/) , the 41-story residential condominium tower, in downtown Denver. (http://www.rockymountainnews.com/drmn/real_estate/article/0,1299,DRMN_414_5694959,00.html ). This news story made me very nervous.

According to the Spire development team, they believe they will be able to find a new lending partner and the loss of this financing will not impact the tower’s construction which has already begun. I hope they are right on both accounts.

Ultimately this incident raises the question: Is this an isolated occurrence or the first in a series of adverse consequences stemming from global capital market corrections which will impact locally in Colorado? Only time will tell but, as a Denver booster, I am hoping it is the former. Denver is poised to make important strides in improving the quality of its downtown built environment through private capital investments and it would be a huge shame if momentum was lost due to forces beyond local control. A View of the Rockies will be paying close attention to this issue in the coming weeks and months.

Wednesday, September 5, 2007

Relatively Low International Air Traffic at DIA

Denver International Airport (DIA) was the 5th busiest airport in the United States in 2006 based on the number of passengers on non-stop flight segments originating in Denver per data from the Bureau of Transportation Statistics (http://www.transtats.bts.gov/).


Total Passengers on Non-Stop Flights in 2006

by Originating U.S. Airport


However, as I have flown in and out of Denver over the years, I have always noticed how relatively few international flights DIA has compared to other large airports in the United States. According to the DIA website 18 international cities can be reached from DIA via non-stop flights including London, England, Frankfurt and Munich, Germany and numerous cities in Canada and Mexico. (see http://www.flydenver.com/diabiz/info/research/faqs.asp for the complete list). The Munich flight was just launched in March of 2007. Denver is working to initiate direct flight services to Tokyo and Beijing in Asia.

When you look at the BTS data, it turns out that although Denver is the 5th busiest overall airport in the United States and the 4th busiest airport in terms of originating domestic non-stop passengers, it is only the 22nd busiest airport in the United States in terms of originating passengers on international flights.

Domestic Passengers on Non-Stop Flights in 2006

by Originating U.S. Airport

International Passengers on Non-Stop Flights in 2006

by Originating U.S. Airport



Per the two tables immediately above, there is clearly a large drop off from being the 4th busiest airport in terms of domestic non-stop passengers to being only 22nd busiest for international passengers. This large disparity between international and domestic air traffic densities at DIA merits analysis and discussion which I plan to provide in a future blog entry.

Thursday, August 30, 2007

Denver Office of Economic Development Podcasts

I wanted to devote a short blog entry to the Denver Office of Economic Development Podcast web page (http://www.denveroedpodcasts.com/). This is a great source information on economic development issues from key leaders in Denver. Podcasters include: Tom Clark, Metro Denver Economic Development Corporation (MDEDC), Mary Rose Loney, DIA Partnership (which is planning to merge with MDEDC and become a special purpose entity with a continuing focus on DIA development issues see http://www.denverpost.com/search/ci_6703391), Tom Gleason, Forest City Stapleton, Michael Hancock, President, Denver City Council, Sandy Bracken, Bard Center for Entrepreneurship at CU Denver, and others.

I thought Tom Clark's podcast did an excellent job of explaining the role of the MDEDC in supporting a cooperative regional approach to economic development in Metro Denver. I also found the other podcasts to be extremely informative. Here's hoping that the Denver Office of Economic Development continues to update this web page with additional information.

Thursday, August 23, 2007

Denver’s Train to Plane: Lessons Learned from Personal Experience and Other Transit Agencies.

As part of the FasTracks rapid transit build out, the Regional Transportation District (RTD) is designing the East Corridor from Union Station to Denver International Airport (DIA) (http://www.rtd-fastracks.com/ec_1 ). RTD has announced that this Corridor will be built with electric commuter rail technology and it is targeted for construction between 2011 and 2014 with the rail system becoming operational in 2015. This line has the potential to dramatically improve transportation to/from DIA, reduce road congestion and provide a reliable way to get to/from the airport in adverse conditions.

However, for this transit option to fulfill its full promise, RTD must design the corridor with the needs of air travelers clearly in mind and should pay attention to the lessons learned from other transit systems. Even small considerations and amenities can substantially improve the overall experience and increase ridership particularly given the stressful nature of air travel today.

I have the following suggestions: provide a “one seat ride” between Union Station and DIA (i.e. not requiring any transfers from the commuter rail to an airport people mover train or buses to reach the airport terminal); make sure the DIA rail station connection to the airport terminals is convenient to air travelers; configure the rail car interiors and station platforms to accommodate passenger luggage; provide paid long term parking capacity on the East Corridor and at stations throughout the FasTracks system and ensure that the facilities at Denver Union Station promote smooth intermodal connections between the East Corridor and other transportation methods.



To my knowledge RTD and DIA have not released detailed design information for the DIA rail station but RTD has posted a rough schematic that shows the proposed DIA rail station will be located underground, on Level One, below a proposed future DIA terminal to be constructed south of and across 84th Avenue from the current Jeppesen Terminal. The new terminal will provide additional departing passenger ticket counters(http://eastcorridor.com/meetingminutes/CorMtng11-8_9-06/CorMtng_11-8_9-06_StationRecom-DIA.pdf).

RTD explains that further detail is not offered in its proposal because

“[s]tation location characteristics for DIA are not evaluated as part of the [East Line Environmental Impact Statement] EIS because it is being done as part of the DIA expansion project.”

In the recently released Preliminary Official Statement Dated July 25, 2007 for DIA Airport System Revenue Bonds, the airport also reveals some information about its rail station plans (http://www.flydenver.com/diabiz/stats/financials/reports/bonds_2007ABC.pdf).

“The airport plans to spend slightly more than $26 million on “Train System Projects” between 2008 and 2013….The 2008-2013 Capital Program also includes a terminal complex project that will provide access from a new rail station to be constructed by the Regional Transportation District...to the Airport terminal. RTD…is currently in the environmental processing and preliminary engineering phases of providing commuter rail service from Denver Union Station…to the Airport….RTD is planning to fund, design, build and operate a rail line to the Airport, as well as station platforms and other rail transit amenities at the Airport Station. The City…is planning to design, build and operate the rail station facilities required to provide access from the rail station to the terminal building including the elevators, escalators, baggage checking and security requirements necessary to accomplish this access.”

So between the information from RTD and DIA provided above, it appears the current design proposal will meet the “one seat ride” criteria unless passengers going to Jeppesen Terminal are required to board a people mover train which seems unlikely based on the information in the bond statement. The design of the connection between the airport rail station and the new airport terminal and the Jeppesen Terminal should facilitate easy pedestrian access. For example moving walkways, ramps, escalators and elevators could be employed.

I have found the connection between Hartsfield-Jackson Atlanta International Airport and the Metro Atlanta Rapid Transit Authority (MARTA) heavy rail transit system, to be very convenient and easy to use. It’s a short walk from baggage claim or the ticket counters to the MARTA trains. This contrasts with the less convenient connection between San Francisco International Airport and the Bay Area Rapid Transit (BART) trains which requires use of an escalator and the airport people mover train to connect between BART and the domestic terminals at San Francisco International Airport. Additionally, the airport rail links to John F. Kennedy Airport in New York, Newark-Liberty Airport in New Jersey and Logan Airport in Boston are also inconvenient because they require transfers from the mass transit system to an airport-based transit mode before connecting passengers to the airport terminal.

The rail cars on the East Corridor should be designed to accommodate luggage with luggage racks and floor space suitable for larger luggage. Additionally, East Corridor rail stations should have ramps and elevators leading to elevated platforms so that passengers can easily get their luggage from the street level onto the rail cars without ever climbing up any steps. Union Station itself should be designed to provide quick, easy connections between different transportation modes including light rail, commuter rail, buses and other modes.

Finally an important amenity which can be used to attract riders to the FasTracks airport rail link is to offer paid long term parking at rail stops. RTD is planning to have more than 3,000 parking spots at four different park and ride stations on the East Corridor. (see http://www.rtd-fastracks.com/media/maps/index.html for details). I am not sure how many, if any spaces, will be available for long-term, overnight use by air passengers. Obviously priority should be given to daily users who park at the stations during work-day commutes. However, in the context of appropriate land use considerations, RTD should provide long-term parking spaces to attract airport passengers.

The BART connection to San Francisco International Airport has not met its ridership expectations since its opening in 2003. However, the system is now offering long term parking at stations near the airport in an effort to increase ridership. (http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2007/07/13/BAG5CR00AJ1.DTL&hw=BART+SFO+Parking&sn=008&sc=497) . RTD should follow this idea and provide paid long-term parking spaces on FasTracks at East Corridor stations and stations on other connecting corridors where feasible.

The Denver Metro Area will maximize the benefits from the East Corridor as long as common sense design decisions are made which provide a comfortable and convenient experience to air travelers.



All images in this blog entry are from the RTD FasTracks web site http://www.rtd-fastracks.com/ except images of the Plane taking off and the DIA terminal which are Courtesy of Denver International Airport http://www.flydenver.com/.

Saturday, August 18, 2007

Creating a Signiture Public Art Attraction in Denver: A Call for Suggestions

Two years ago I spent a summer weekend in Providence, Rhode Island and attended WaterFire (http://www.waterfire.org/ww.waterfire.org/). Equal parts public art installation, seasonal festival, public spectacle, and performance art, WaterFire has evolved into a Providence icon.



The WaterFire web site provides an excellent description of this attraction:

“WaterFire Providence, the award-winning sculpture by Barnaby Evans installed on the three rivers of downtown Providence, has been praised by Rhode Island residents and international visitors alike as a powerful work of art and a moving symbol of Providence’s renaissance. WaterFire’s one hundred sparkling bonfires, the fragrant scent of aromatic wood smoke, the flickering firelight on the arched bridges, the silhouettes of the firetenders passing by the flames, the torch-lit vessels traveling down the river, and the enchanting music from around the world engage all the senses and emotions of those who stroll the paths of Waterplace Park. WaterFire has captured the imagination of over ten million visitors, bringing life to downtown, and revitalizing Rhode Island’s capital city.”

WaterFire has drawn thousands of visitors into Providence, helped reinvigorate the downtown area and provided a substantial economic boost to the city which is estimated to be in the millions of dollars each season.

Civic leaders in Denver such as Mayor Hickenlooper and staff in the Denver Office of Cultural Affairs clearly recognize the powerful economic devleopment impact that the arts can have on the city. Denver is already blessed with an outstanding series of annual events, festivals, and artistic and cultural organizations. The City of Denver also has a strong public art program (http://www.denvergov.org/Default.aspx?alias=www.denvergov.org/Public_Art_Program ). Metro Denver voters have wisely supported the regional Scientific and Cultural Facilties District (SCFD) (http://www.scfd.org/ ) through a tenth of a percent sales tax in the seven county Denver Metro Area.

However, I believe that the City of Denver and the metro area would benefit enormously from developing a signature public art attraction that is analogous to WaterFire. Such an attraction would need to be both spectacular and intellectually stimulating. It should be created by an artist who has a deep understanding of Denver so that it fits contextually into the local geography and built environment using media formats that are organic to Colorado. The attraction would need to generate strong support from the local community including residents, businesses and civic leaders. Making this attraction “green” (i.e. environmentally friendly) would also be important These are not easy requirements to meet but the payoff for Denver could be tremendous if a successful attraction was launched.

This attraction would serve as a powerful brand building campaign for Denver, and help to fulfill Mayor Hickenlooper’s vision that “Denver will ascend to be the cultural capital of the west.” It could draw in tens of thousands of visitors to Denver and provide enjoyment to local residents. Other local artistic and cultural entities would gain spillover benefits from the publicity and traffic it generates as Denver’s profile as an artistic destination is raised.

Blog readers, what do you think of this idea? This blog is making an open call for suggestions and opinions on this topic? Please provide your feedback on this idea and also let Denver civic leaders such as the Denver Office of Cultural Affairs( http://www.denvergov.org/HomePage/tabid/378071/Default.aspx) know what you think.


The WaterFire photographs in this blog entry are from http://www.waterfire.org. WaterFire installation & musical compilations © Barnaby Evans 1997-2007.

Monday, August 13, 2007

Metro Denver's International Competitiveness: Ranking Denver with OECD Data

A basic premise of A View of the Rockies is that Metro Denver does not just compete with cities in the United States for capital, employees and businesses, but also with metro areas around the globe. This blog entry explores Metro Denver’s international competitiveness by examining the area's rankings compared to international metro areas based on key metrics such as population, productivity, GDP per capita, employment rate and educational achievement.

The Organization for Economic Cooperation and Development (OECD) (http://www.oecd.org/) is an international organization which “brings together the governments of countries committed to democracy and the market economcy from around the world to: Support sustainable economic growth; Boost employment; Raise living standards; Maintain financial stability; Assist other countries' economic development; and Contribute to growth in world trade.” Headquartered in Paris, the OECD has 30 member nations in Europe, North America and Asia.


The OECD produced a publication called Competitive Cities in the Global Economy in 2006 as part of the OECD Territorial Reviews series which defines and compares 78 international metro areas. The OECD uses a methodology which looks at population population density, commute patterns and total population size to define metro regions. Listing all the metro areas included by the OECD in this report would be too lengthy for this blog but the U.S metro areas include the following : Atlanta, Baltimore, Boston, Chicago, Cleveland, Dallas, Denver, Detroit, Houston, Los Angeles, Miami, Minneapolis, New York, Philadelphia, Phoenix, Pittsburgh, Portland, San Diego, San Francisco, Seattle, St. Louis, Tampa Bay, and Washington D.C. International cities come from Canada, Mexico, Europe, Japan, South Korea, etc.

Any attempt at comparing economic data across nations is fraught with challenges due to differences in data collection methodologies and definitions between governments in different nations. These issues should be kept in mind in viewing the data presented in this blog. Note also that the metrics presented below are not comprehensive measures of global competitiveness but do provide useful measurements and indications.

So how does Denver compare to other international cities across key metrics reported by the OECD? The following table summarizes Denver’s rankings. Note the table is constructed in such as way that higher rankings are always better. So, for example, a higher ranking on unemployment means the actual unemployment percentage is low.


Metro Denver's International Rankings Based On OECD Competitiveness Metrics



Metro Denver scores extremely well (4th) both in absolute terms and relative to the national U.S. population in the percent of its population with higher education (referred to as "Tertiary" education in the table above). This rating indicates that Denver's labor force is highly skilled and well-positioned to participate in knowledge-based economic activities. Denver also scored well in the GDP per Capita (7th) and Productivity (13th) metrics which are also both indicators of the quality of the regional labor force.


However, in total population, Denver is one of the smallest metro areas analyzed by the OECD (61st). Many of the other international metro areas in the survey which have relatively small populations have the advantage of being national governmental capital cities and/or the largest city in their respective nations (e.g. Prague, Vienna, Stockholm, Oslo, Helsinki, Dublin and Auckland). Metro Denver's relatively small population, lack of national capital status, and its spatial isolation from other large metro areas may make it relatively harder to market the Denver Metro Area to international businesses and investors because there is a smaller chance that international decision makers will either visit Denver directly or visit near-by metro areas and do a side trip to Denver (less spill over). I believe this disadvantage implies that Metro Denver may need to work relatively harder and smarter than global competitor metro areas to develop international brand awareness and attract the global financial capital and businesses that a city with its high quality labor force and natural amenities would normally justify.


Denver also scores in the bottom half (upper portion) of the rankings of employment and unemployment scores relative to the home country national average score. To some degree scoring in the lower mid-range in these metrics should not be viewed as major competitive determent because the United States overall has relatively lower unemployment than many other nations with cities included in the survey. However, Denver does score below other U.S. cities on the employment metric except for St. Louis, Houston, Chicago, Cleveland, Pittsburgh and Detroit. Metro Denver's relatively weak score here may be in part due to the Metro Area's reliance on air transportation and telecommunications industries both of which were in economic down cycles during the 2002 and 2004 time frame when this data was gathered. This points out a larger concern about the Metro Denver economy -- that traditionally the Denver economy has been very cyclical with heavy dependence on a relatively small number of industries. This issue is something which merits further exploration and discussion in a later blog entry.

Saturday, August 4, 2007

Economic Base Analysis Part II: Location Quotients and Industry Growth Forecasts

In my blog from July 4, 2007, I presented data on the nine county Metro Denver and City and County of Denver location quotients which evaluated which industries are part of the areas' economic bases. In this blog, I combine Metro Denver location quotient data with forecasts of average annual growth rates by industry from 2004 through 2014 from the Bureau of Labor Statistics. This allows me to plot location quotient against economic growth forecasts and create a two by two matrix (see Figure 1 below).


Within the matrix two of the quadrants are particularly useful. Those industries which have location quotients greater than one and positive economic growth forecasts are likely to be positive drivers of the Metro Denver economy (see Quadrant I in Figure 1 and Figure 2 below). Those industries which have location quotients greater than one and negative economic growth forecasts are likely to negatively impact the Metro Denver economy (see Quadrant II in Figure 1 and Figure 3 below) and should be cause for concern among civic leaders and local government officials due to their risk of decline. Note I did not label the specific industries plotted in Figure 1 because the plots are too dense to allow for labels to be legible but the industries in Quadrants I and II with the highest location quotients are listed in Figures 2 and 3 below.

From a high level perspective, the good news for Metro Denver is that there are a lot more industries in Figure 1 Quadrant I/Figure 2 than there are in Figure 1 Quadrant II/Figure 3 which indicates that based on the composition of its economic base, Metro Denver is poised to benefit more from industry growth than it will be harmed by declines.


Figure 1: LQ versus Average Annual Growth




Figure 2: Growth Industries (from Quadrant I)



Figure 2 above shows that the Denver Metro Area economic base is well positioned in a range of knowledge-based, service sector industries which are poised for economic growth including professional and technical services, internet related employment and several financial services sectors among others. It is notable that the BLS forecasts for growth in the air transportation sector are proving to be accurate as shown by the strong performance of Denver International Airport (see my July 30, 2007 blog about DIA's expansion plans).



Figure 3: Industries at Risk for Decline (Quadrant 2)


According to Figure 3, the oil and gas extraction, telecommunications, postal, computer and electronic product manufacturing, and miscellaneous manufacturing sectors are forecasted to decline from 2004 to 2014. The forecast for declines in the oil and gas extraction sector appear to be quite wrong given that the sector has enjoyed a boom throughout the Rocky Mountain West, the nation and the world due to high energy prices and strong global demand.

However, the telecommunications and computer and electronic product manufacturing and miscellaneous manufacturing sectors appear to be sectors that pose the highest risk for declining in the near term and harming Metro Denver's economic health (the Postal sector is very small in terms of total employment). The Metro Denver Economic Development Corporation has correctly recognized the risk to these sectors by identifying “Broadcasting and Telecommunications” and “Information Technology – Hardware” as two of the three “industry clusters” it has “targeted for retention.” (see http://www.metrodenver.org/DenverProfiles/IndustryClusters/IndustryClusters.icm).

I believe, even high technology manufacturing will be increasingly hard to sustain in the Metro Denver Area and the United States as a whole and that manufacturing sectors have the highest risk of contraction of any sector within the metro area economic base. Increasing global competition in manufacturing will continue to take share from U.S. based manufacturers. If this belief is true, this implies that, over the long term, economic development officials should focus their efforts on retention and recruitment of telecommunications related companies, as opposed to companies in other at risk sectors, to achieve maximum benefit for the Denver Metro Area.

Monday, July 30, 2007

The DIA Expansion: Fullfilling the Vision

There was great news today for Metro Denver economic development wonks. Jeff Leib’s article in the Denver Post, “$1.2 billion makeover for DIA” (http://www.denverpost.com/news/ci_6496074 ), explains that Denver is issuing municipal revenue bonds to pay for major airport expansion items such as new gates, a commuter jet terminal, a new automated baggage system (sound familiar?), the FasTracks commuter rail station at DIA, and additional parking facilities. I plan to devote a future blog about design considerations for Denver’s “Train to Plane” rail connection.


DIA is expanding its facilities and infrastructure to accommodate increasing traffic. This is an important milestone in the history of aviation in Denver. DIA was envisioned as an economic development engine for Denver in much the same way as DFW airport is for the Dallas Metro Area. Building DIA was always a strategically sound idea based on the fact that Denver’s location, between the population centers on the West Coast and the Midwest, makes it a natural transportation hub (see my blog from July 13, 2007, “Spatial Isolation and Punching Above Denver’s (Population) Weight”) . Denver needed an airport farther away from the urban core of the city with room to expand as traffic increased and with space for appropriately sized and configured runways to handle weather related challenges in Denver. DIA is one of the few major airports in the country with plenty of room to expand its facilities and with flight paths into and out of the airport over relatively sparsely populated land. I personally fly Jet Blue out of John F. Kennedy Airport in New York regularly and as Jet Blue has grown and expanded, the airspace around JFK has gotten so congested that flights regularly suffer from serious delays. This summer in particular has been a nightmare. Reducing this congestion will be a really hard thing to do for JFK and most other large airports in the United States because they can’t expand the same way DIA can.

DIA suffered a number of set backs early in its history including the abandonment of the Denver hub by Continental Airlines and problems getting the first attempt at an automated baggage system running. Just as air travel industry was hitting stride in Denver, the events of 911 and the resulting airline financial problems sent the whole industry into a downward economic trajectory. However, Denver’s natural strategic advantages as an air transportation hub have allowed DIA to steadily build into a powerhouse as United Airlines retained Denver as a hub, Frontier Airlines was launched from a base at DIA and has expanded tremendously and more recently as South West Airlines has aggressively entered the market. The airline industry will always have cyclical ups and downs and Denver needs to be prepared for the downturn which will eventually follow today’s boom in travel, but DIA is positioned to play an increasingly prominent role in the national air transport system and to help drive the Denver Metro Area’s economic growth.
Photos provided courtesy of Denver International Airport.

Wednesday, July 18, 2007

The Opportunities and Risks of the 2008 Democratic National Convention

Congratulations to Denver Mayor John Hickenlooper for his well deserved second term in office. Expectations are a mile high. The new term will offer many opportunities and challenges. Perhaps none is bigger than an event I alluded to in my July 13, 2007 blog -- Denver's once-in-a-century opportunity to host a major national political convention. When the Democratic Party comes to town to formally select its 2008 Presidential nominee, it will be 100 years after Denver hosted its first major political convention.

In 1908, when the Democratic National Convention was in Denver, the city was trying to lure residents from the East Coast to the Rocky Mountain West and was in the midst of a major building effort based on then Mayor Speer's embrace of the City Beautiful movement. Today, Denver competes in a fierce struggle to lure global talent, capital and businesses and is experiencing an extended period of urban revitalization and construction.

The 2008 Democratic Convention is an unparalleled opportunity to show the world all that Denver has to offer. Its a chance to add luster to Denver the brand - and to place the metro area into the consciousness of decision makers from around the world as Denver will become the media capital of the planet for a four day period. It will also bring a multi-million dollar economic windfall to several sectors of the metro economy.

With this opportunity comes increased risks --- labor strife, political protest, financial shortfall, logistical snafus and, unfortunately, the possibility of a terrorist attack. If Denver wants to fulfill its aspirations, rise in the rankings of great cities and host future events like the Winter or Summer Olympics, it must successfully manage these risks.

I believe the "can do" spirit of Colorado can make the convention a huge success for Metro Denver, the State of Colorado and the entire region but it will take long days and late nights of planning, hard work and dedication and flawless execution.

Good luck to Elbra Wedgeworth, Mike Dino, Mayor Hickenlooper, Governor Ritter and the people of Colorado.