April 7, 2006

Contact: Hilarie Portell, Lowry Redevelopment Authority, (303) 326-7123

Lowry Redevelopment Creates $5.7 Billion Economic Benefit
25,000 People Live, Work and Go to School at Lowry

Denver, CO --The Lowry redevelopment created a $5.7 billion gross economic impact between 1994 and 2005, according to new research by Development Research Partners, a local real estate analysis and economic development research company. Approximately $3.3 billion directly benefited the City and County of Denver, including $128.1 million in taxes and fees. The remaining $2.4 billion benefited the City of Aurora, the State of Colorado and other states. The research was commissioned to update an economic impact report completed in 2004.

"Lowry is a maturing community, and the economic impact compounds every year," said Tom Markham, executive director of the Lowry Redevelopment Authority. "As we approach completion, we feel it's important to quantify the public benefit of redeveloping Lowry Air Force Base."

The data is also useful to the 25 communities with military bases announced for closure in 2005.

"We want to demonstrate that there can be life after base closure," said Markham, who is also president of the National Association of Defense Communities.

Lowry Air Force Base closed in 1994 and the redevelopment is approximately 80 percent complete. About 25,000 people live, work and go to school at Lowry. The total market value for residential and non-residential construction at Lowry is currently $1.5 billion.

Other study highlights:

Construction Activity: The total economic benefit of residential and nonresidential construction activity to the City and County of Denver since 1994 is $456.7 million, including $21.6 million in taxes and fees.

  • In 2004 and 2005, approximately 146,000 square feet of new commercial space and more than 650 residential units were built at Lowry, along with $10.6 million in infrastructure improvements.
  • Commercial development in 2004 and 2005 included the Lowry Medical Center, Lowry 24 Hour Fitness Club, Powerhouse Plaza Office Condominiums and the Richards Building.
  • The Lowry Redevelopment Authority has spent about $102 million in site-wide infrastructure improvements since 1994, including demolition of 291 Air Force buildings, demolition and recycling of 600,000 tons of concrete and runways, and construction of 37 miles of new roads and 53 miles of new utilities.
  • Construction at Lowry has employed an average of 768 workers per year.

Operations: The 102 employers at Lowry occupy 3.4 million square feet of space and employ 7,100 people.

  • Lowry employers are private businesses, nonprofit organizations, state and federal government and schools. About one-third of the employers are medical office firms. Office uses account for 37 percent of total non-residential, space, educational facilities 21 percent, medical uses 17 percent, recreational uses 12 percent, warehouse/distribution 8 percent and retail stores 5 percent.
  • 71 percent of Lowry employers are small businesses, with less than 50 workers. Seven percent of employers have more than 250 workers.
  • The average wage of Lowry workers is $50,800 per year, compared to the metro Denver average wage of $45,100.
  • As of December 31, 2005, the total occupancy rate of commercial space, excluding educational uses, was 88 percent.
  • Lowry employers have created a total economic benefit to the City and County of Denver of $1.9 billion, including $21.8 million in taxes and fees.
  • All remaining commercial parcels of land are under letter of intent or contract. Commercial development should be complete by 2009.

Resident and Employee Spending: More than 8,300 people live at Lowry in approximately 3,500 and apartments.

  • Home prices currently range from the mid $100,000s to over $1 million. The average home price in 2005, for both new and resale homes, was $495,100.
  • The average household income is $91,500, compared to $70,000 in metro Denver.
  • The Lowry Community Land Trust has sold 100 affordable priced between $115,000 and $142,000. Another 86 are planned or underway, with prices ranging from $138,000 to $167,000. An additional 100 affordable are being sold with no price controls, priced at approximately $150,000.
  • 437 of Lowry's 1,900 apartments are being leased to tenants with incomes ranging from below 30 percent to 60 percent of the area's median income.
  • Lowry residents and employees have provided a total economic benefit of $860.1 million, including $84.6 million in taxes and fees. The economic benefit includes spending habits and payment of sales and property taxes.
  • Residential development at Lowry should be complete by 2009.

Education: 9,500 students attend Lowry schools each year, not including 7,800 distance learners at two community colleges.

  • Educational opportunities at Lowry range from preschool to post-graduate. There are nine independent schools, one public elementary school, two community colleges and a Colorado Free University branch.
  • Two charter schools moved to Lowry in 2005.

Development Financing: The Lowry Redevelopment Authority (LRA) will spend approximately $555 million to prepare the Lowry site for sale to commercial and residential developers. About 70 percent of the funding comes from private sources and 30 percent from public sources. All borrowed funds are being repaid through land sales. Most property taxes are being diverted to retire bonds used for demolition, parks and a public school. There are no special taxing districts at Lowry.

Visitor Spending: Approximately 9.2 million visitors came to Lowry from 1994 to 2005, for attractions such as the Schlessman Family Library, Big Bear Ice Arena and Wings Over the Rockies Air and Space Museum.

  • Visitors spent an estimated $9.2 million on purchases and generated $143,000 in sales revenue for the City and County of Denver.

Payback of Investment: The City and County of Denver invested $1.37 million in Lowry to assist with masterplanning, infrastructure improvements, marketing and affordable housing. According to the study, this investment was paid back in economic benefits in less than one month.

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