Denver’s City Council gave the green light to Alterra Mountain Company’s move into the former Denver Post building near Civic Center Park. The 12‑year lease covers roughly 65,000 square feet and will bring the building’s occupancy to about 54 percent.
Incentives and employment boost
Under the agreement, Alterra will pay $22 per square foot, with a modest $0.50 increase each year on a triple‑net basis. The city estimates it will collect roughly $15.7 million over the lease term. In exchange, the company receives a package of incentives designed to keep it in Denver rather than relocating to Utah.
Alterra plans to relocate about 275 current employees from its River North office and add close to 100 new positions over the coming years. Company officials say the staff will work downtown three days a week and will enjoy free parking on the building’s deck.
Council debate and concerns
The vote was not unanimous. Councilmembers Shontel Lewis, Flor Alvidrez and Serena Gonzales‑Gutierrez opposed the measure. Lewis, who is running for mayor, argued that the city’s real‑estate strategy was poorly timed given the city’s finances and the broader shift toward remote work. She warned that forcing employees to return to a downtown office could breed resentment.
Alvidrez raised a fairness issue, noting that free parking would be offered to highly paid corporate workers while many low‑income city employees still struggle to find affordable parking.
Real‑estate director Lisa Lumley defended the deal, saying the incentives were necessary to keep a tenant in Uptown, an area that has struggled with vacancy. She also emphasized that the city’s need for office space has not changed and that the lease helps address lingering court‑facility needs after the Denver Post’s parent stopped paying rent.
Financial and contractual details
Alterra’s current River North lease runs through 2029. The landlord warned the company could owe millions if it leaves early, but Alterra’s chief development officer Krista Springer said the company intends to exit the River North space under the terms of its existing lease, regardless of the council’s vote.
If Alterra terminates the new lease early, it would owe $1.5 million. The agreement also includes a provision that the city will receive a steady stream of revenue, helping fund municipal services.
What this means for downtown Denver
Supporters view the deal as a step toward revitalizing downtown office space, which has seen high vacancy rates since the pandemic. Critics worry that incentives and free parking amount to corporate handouts at taxpayers’ expense.
The council’s 8‑3 vote reflects a balance between economic development goals and concerns about fiscal responsibility. As the lease takes effect, Denver will watch whether the promised job growth and increased downtown activity materialize.
Original reporting: Denverite — read the source article.
