What’s Working: Is charm an economic impact? A Denver developer with a love for historic preservation says yes.
Also: Colorado’s unemployment rate is higher than the nation's for the first time in three years, but we’re tops for job openings. Plus: Fruition closing, see how computers are made in Denver, more!
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Scientists may have proven that beauty is in the eye of the beholder, but a Colorado developer focused on historic preservation says beauty is in the reuse of buildings that were oriented to the pedestrian before we became a car-focused society, and that preserving them can lead to some interesting returns on investment.
That’s according to Grant Bennett, principal of the Denver-based company Proximity Green, which helps public-private partnerships finance complicated real estate projects.
He says “historical buildings (pre-1940s-ish) were built with the pedestrian in mind … scale, setting, context, function,” and that when you’re in them, your “conscious or unconscious acknowledgment of a really great place speaks to this issue. Nobody feels at home in a big box parking lot, or the walking approach to the big box. Alternatively, Larimer Square,” which has 24 historically preserved buildings filled with with designer shops and fancy restaurants, “feels like a living room. You’re comfortable in it. It’s visually interesting and dynamic.”
Colorado developer Dana Crawford saw the potential for Larimer Square when she began buying and restoring derelict properties there in the 1960s. Her work led to the designation of Denver’s first locally protected historic district in 1971. Since then the square has seen its share of financial ups and downs. But Bennett says the economic impact of Crawford’s investment over time has been, “direct: many tens of millions of dollars; indirect: hundreds of millions; and induced: priceless. … When Monday Night Football does the downtown shot midgame at Larimer Square, I’m not sure how you can even assign value beyond immeasurable.”
He also said financial return on investment isn’t what most people think about with historic preservation. “Certainly the historic world has measured this, but it’s not the primary driver so people aren’t trying to maximize it.”
When asked how the Office of Economic Development and International Trade measures ROI on historic preservation, spokesperson Alissa Johnson cited the number of new housing units built as a result of historic preservation tax credits since 2018 — 377, with 200 more coming online in the next year and a half. And developers who take on historic preservation projects have been awarded $57 million in historic tax credits since 1990.
PlaceEcomonics, a private sector firm that analyzes the economic impacts of historic preservation, cites several economic benefits from projects in cities across the U.S. in its list of 24 reasons why historic preservation is good for a community. These include job creation, downtown revitalization, heritage tourism, increased property values and “strength in up and down markets.”
Bennett doesn’t dispute any of those impacts, but his firm likes projects that combine “adaptive reuse, historic preservation and affordable housing together” to turn old buildings into a benefit directly impacting a societal need. They include Pancratia Hall Lofts, a former classroom and dormitory building on the historic Loretto Heights campus in southwestern Denver, with 74 rent-controlled apartments available for as low $1,017 per month to tenants earning no more than 30% of Denver’s median.
And equally important to Bennett are the “sense of place and sense of pride preserving history creates” when developers do things like turn bricks made in the Trinidad Brick Company between 1910 and 1978 into a road running through town, “because they were important enough to carry a certain feeling forward as they revitalize downtown,” he said.
“There’s probably zero direct economic return that’s really measurable from making it brick versus making it asphalt,” he added. “That being said, the charm that it brought is massive.”
So does charm have an economic impact?
“Nobody drives past a Starbucks to get to another Starbucks,” Bennett said, quoting real estate developer and placemaker Jeff Hermanson. “On the other hand, people would drive outsize distances to go experience a place that tells a story, which speaks to the intangible impacts. Simply put, people want places with a human scale, and historic preservation often provides that exact recipe for the built environment.”
➔ Boulder County Courthouse lands National Historic Landmark. History Colorado has spent $360 million on historic preservation projects across the state since 1990, and the state has 29 federally designated National Historic Landmarks, including one newly designated in a group of 19 by Secretary of the Interior Deb Haaland on Monday.
The Boulder County Courthouse on Pearl Street received its designation for its pivotal role in advancing LGBTQ+ rights, for example. The Department of the Interior said it “became a beacon of equality and justice in 1975 when Boulder County Clerk Clela Rorex issued the first same-sex marriage license in the nation.”
Other designations recognized African Americans, Asian American Pacific Islanders, and women’s history, in addition to moments important in development of American technology, landscape design and art, DOI added.
Send story tips, leads or ideas you’d like Tracy to know about to tracy@coloradosun.com.
Section by Tracy Ross | Reporter
Colorado jobless rate up to 4.3%, as state tops U.S. for openings, layoffs
More Colorado workers found themselves unemployed in November, pushing the state’s unemployment rate up two-tenths of a point to 4.3%. The U.S. rate increased one-tenth of a point to 4.2%, making it the first time in three years that Colorado’s rate was higher than the nation’s.
These are preliminary numbers that could be revised, according to the state’s Department of Labor and Employment on Friday. But as shared, the number of employed Coloradans shrunk in the past month by 4,900 to 3.1 million in November, while unemployed workers increased by 4,600 to 139,300. While a rising unemployment rate is a concern, a state labor economist said last month that rates “are still well below historical averages.”
But also of note is how many jobs were created during the month. According to the labor department, there were zero created. Employers actually lost 3,900 nonfarm payroll jobs in November, which includes an increase of 1,600 jobs by the government. Minus those new government roles, private employers reduced payroll jobs by 5,500, leading the nation, the conservative think tank Common Sense Institute pointed out. Colorado had 3,011,000 jobs in November.
In the past 12 months, the overall number of jobs created was 52,900 with about two-thirds added by private employers and the rest by the government. Colorado’s job data, however, continues to have ongoing issues due to “the modernization of Colorado’s unemployment insurance system,” and has been temporarily suspended, according to a note in the BLS monthly report.
The state has been working on resolving the issue but at least one local economist shared, “It’s definitely a concern to us data users,” said Bill Craighead, program director for the University of Colorado, Colorado Springs Economic Forum.
Other job data from October, released Tuesday by the Bureau of Labor Statistics, ranked Colorado in the top one or two spots for job openings, layoffs, hiring and other labor data in the monthly compilation known as the Job Openings and Labor Turnover summary.
The state has landed at the very top before, such as in August 2021 in the pandemic recovery when it had the highest rate of layoffs. But it seems rare for a state to have the most job openings, layoffs and separations in the same month. That’s what happened in October. Colorado also ranked second highest for the rate of people quitting their jobs and the rate of employers hiring workers.
Katherine Bauer, a BLS economist who tracks JOLTS data, said that monthly estimates tend to be volatile because it’s based on small survey samples. It’s best to look at trends over time.
But for Colorado, “rates for hires and total separations are roughly in line with recent trends. Colorado job openings are much higher than is typical,” Bauer said. “In our experience, it’s not surprising to see a state that has high job openings also have high hires and total separations. When these measures are high, it can indicate a high level of churn in the economy.”
>> View Colorado’s detailed November job report
Section by Tamara Chuang | Business/Technology Reporter
Sun economy stories you may have missed
➔ Colorado’s budget deficit is now forecast to be smaller than the $1 billion hole originally predicted. The state budget hole will be more like $750 million >> Read story
➔ Never tried Enstrom’s toffee? You’re missing out on a nearly century-long Colorado holiday tradition. “If you don’t give Enstrom toffee, people are asking, ‘do you not like me anymore?’” >> Read story
➔ Bogus oil and gas data filed for wells in or near 15 Front Range cities and towns, Colorado regulators say. Case has been referred to prosecutors, though Energy and Carbon Management Commission investigation has found no new health risks >> Read story
➔ Southern Colorado ski area, closed for more than 20 years, gets $250K from state, boost from community. The grant will help volunteers at Cuchara Mountain Park use a snowcat-pulled passenger sled to ferry skiers while they work on a chairlift. >> Read story
➔ Colorado’s new hands-free law, which bans cellphone use while driving, goes into effect Jan. 1. The new law is aimed at boosting safety on the roads. >> Read story
➔ Building a grid good enough to support thousands of new EVs and heat pumps will cost Colorado Xcel customers $5 billion. State’s largest utility wants new and improved substations to meet “a demand on the grid we haven’t seen since the advent of air conditioning.” >> Read story
Reader poll: Retirement savings results
There was a lot of interest in last week’s update on the state’s mandatory retirement-savings plan called SecureSavings (registration is required for most employers who don’t offer one). But based on the reader survey, interest may be less about the details of Colorado’s offering and rather just retirement in general.
Colorado Sun news readers tend to be more educated, at least in my opinion, so it may not be a surprise that most of the 145 people who took last week’s poll have a retirement account and nearly 70% have saved up more than $100,000 so far.
In response to some of the questions readers asked:
We also talked about it Tuesday on the Sun-Up podcast. Listen in!
➔ Take the new poll: What’s your economic expectations for 2025? >> cosun.co/WW2025poll
Section by Tamara Chuang | Business/Technology Reporter
Other working bits
➔ James Beard award-winning restaurant Fruition to close. It’s been a rough few years for the restaurant industry, especially for the fine-dining restaurants in Denver, which we reported on earlier this year. Now, chef-owner Alex Seidel has announced that Fruition, which helped put the Denver dining scene on the global map, will serve its last dish Jan. 12. In our story last August, Seidel was glum about the diminishing diners, higher costs and local regulations. >> Read Fruition statement
➔ Denver computer maker wants to show how stuff gets made in America. Manufacturing is alive and well in Colorado. Computer company System 76 has been building its Linux-based machines in a plant in north Denver. Now, the company is inviting the curious for a behind the scenes look at how computers and keyboards are made from scratch. They also host monthly meetups with the next one scheduled Jan. 8. >> RSVP or book a free tour
➔ SBA offering up to $9 million in awards to boost entrepreneurship. Cash awards of $75,000 will be given out during round one of the U.S. Small Business Administration’s 2025 Growth Accelerator Fund Competition. The contest is open to organizations that are creating ecosystems to support entrepreneurs. Round one is seeking “unique solutions” for startup challenges in the ecosystem. Make it to round two and there’s another $150,000 award to build and scale the proposed solution. Applications open Jan. 8 with a webinar to kick things off. >> Details, rules
Got some economic news or business bits Coloradans should know? Tell us: cosun.co/heyww
Thanks for sticking with us for this week’s report. What’s Working is skipping next week to enjoy the holidays. But we’ll be back in the new year. Stay safe and enjoy the holidays. As always, share your 2 cents on how the economy is keeping you down or helping you up at cosun.co/heyww. ~ tamara & tracy
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