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Cigna to Establish Regional Headquarters at Colorado Center

April 23, 2018

 

 

Cigna to Establish Regional Headquarters at Colorado Center

Global insurance and health services company Cigna has signed a lease for 135,800 square feet in Colorado Center’s recently completed Tower 3. The Class A office building will serve as the company’s regional headquarters, housing more than 1,000 employees on five full floors. Colorado Center is located at Interstate 25 and Colorado Boulevard. “Our new home at Colorado Center is a significant investment in our Colorado workforce and affirmation of our continued momentum in the Mountain States region. Colorado Center is a fantastic 21st century facility that will provide collaborative workspaces and first-rate amenities that will enable our employees to better serve our clients and customers,” said John Roble, president of Cigna’s Mountain States Market. The company plans to take occupancy early next year. ASB Real Estate Investments and Lincoln Property developed the 227,000-sf Tower 3. They plan to add a 12,000-sf food hall at Colorado Center that will open in 2019 and include local chef-driven concepts, a live performance venue and outdoor plaza. (Colorado Real Estate Journal)

 

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Boulder Sets Affordable Housing Linkage Fee at $30, Just Shy of Country's Highest

The slow-growth majority on the Boulder City Council on Tuesday reversed a significant move made by the previous council, voting to increase by 150 percent the per-square-foot fee that commercial developers must pay into the city affordable housing fund. That fee, set at $12 just 16 months ago, will be raised to $30, the council decided in a 6-3 vote. Affordable housing linkage fees are onetime payments commercial developers must give cities in order to offset the impact of their new construction — and the jobs that construction brings — on the resulting demand for affordable housing in that city. Most cities do not have these fees. They are seen mostly in affluent communities on the coasts, and are used at higher levels in Bay Area cities with housing crises, such as Mountain View and Palo Alto. Palo Alto's fee is $35, which is the country's highest. At $30, Boulder's fee will fall just shy of that, but in effect it will be vastly steeper than the fee in Palo Alto, because land there is so much more expensive. This fee has been, for years now, the subject of considerable debate in Boulder. But the side favoring an increase won four of the five open council seats in the November election, delivering a six-member majority — Mayor Suzanne Jones and council members Mary Young, Lisa Morzel, Cindy Carlisle, Mirabai Nagle and Sam Weaver — that favored an increase. Council members spoke at length about their respective reasons for opposing or supporting the increase, and several among the majority noted along the way that Boulder voters elected them to do this. "Four of us that are up here now campaigned very strongly on linkage fee increases," Young said. "So I think the election speaks for itself." All nine members of the council profess a strong desire to create and to preserve affordable housing in a city famously short on that product. The majority believes the higher fee will help in that shared mission. The minority — Mayor Pro Tem Aaron Brockett and council members Bob Yates and Jill Adler Grano — believes the increase will have negative impacts and won't advance the mission. "There is not a right answer here," Mayor Suzanne Jones said prior to the vote. "We are all striving to manage variables and doing our best to get them all right." The vote will be made official May 1, but there is no more major discussion to come, and the final vote will likely be put on the council's consent agenda. Those who support an increased fee have said, generally, that the city's current fee is too low to incentivize housing over commercial development, and that this is exacerbating what is widely referred to as Boulder's "jobs/housing imbalance." Leonard May, the former council candidate who was recently appointed by the City Council to the city's new Housing Advisory Board, said a fee of $58 would be most appropriate. He was speaking on behalf of the citizen group PLAN-Boulder County. "The fundamental issue is stabilizing the erosion of middle- and lower-income households," May said. "Ultimately, the goal is to keep the people in the city that are reflective of the current income distribution." Bringing the fee up to $30, the council majority argued, will charge commercial developers at a level more equitable with what residential developers have to play. The majority is hopeful that this "parity" in cost will make commercial developers think twice. And when they don't think twice and still build commercial, the argument goes, at least Boulder will be getting a heap of cash for affordable housing. Once the fee is fully phased in, even a modestly sized 10,000-square-foot office building, for example, would bring in $300,000 for affordable housing. On the other hand, a massive office project, such as Google's new one in central Boulder, would bring in $6 million. In total, the city's affordable housing fund has $1.7 million right now. Future support for that fund will come either from cash-in-lieu fees that residential developers pay instead of building affordable units at their development sites, or from linkage fees. Grano, who opposed the increase, has long argued that Boulder should provide those incentives through zoning, and not through fees. She noted that in zones where developers have the choice to build either residential or commercial, they usually tend toward the former. Jim Robertson, the city's planning director, said the same thing, adding that "absolutely, the zoning is one of the main drivers" of a parcel's use. Weaver said that he agreed zoning is a significant tool, but that he doesn't believe it alone is the solution, in this case. Boulder previously raised its fee to $12, up from $9.53, and many have argued that the council hasn't left enough time for analysis of that increase's impact, and that it's inappropriate to command another increase so soon after the last one. Said citizen Phil Day during the comment period, "If that ($12) rate, after being thoroughly analyzed and considered, was voted upon, thought about, approved, how then, in less than one year, do you want to basically repudiate that analysis and double or triple the rate?" On the other hand, countered Weaver, waiting a few years to see how that $12 rate performs will mean the expensive consultant's study Boulder commissioned for this project will be that much older and staler. Opponents of the increased fee have said the higher fee will harm small businesses that seek to put up new facilities or get higher rents passed on to them from builders who have to pay higher fees. "I believe so strongly that this is going to negatively impact our affordable housing fund," Grano said. It does not make sense, she argued, to talk about bringing residential and commercial fees to "parity," as Weaver so often has, given that the former sells for so much more than the latter. Brockett cautioned that the increase is "dangerous to our local economy right now," noting, as others did, that Boulder's facing a $4 million budget shortfall because of low sales tax revenue, and that active dissuasion of commercial development could mean fewer people working in Boulder and paying sales tax here. Yates joked to the majority members that they could "get a pass" on following through with their campaign promises on this front, "because you did not know at that time that we would be facing sales tax headwinds." While developers of office space will have to pay the full $30 fee after the phase-in, other commercial users will be spared somewhat, due to a tier system approved Tuesday by the council. Hospital space, for example, will only have to pay a $20 fee, while warehouse users will pay the minimum fee of $10. (Daily Camera)

 

 

Denver Ranks No. 2 in Spending on Multifamily Construction

Denver ranks second in the nation for per-capita new multifamily construction spending, according to a report from Apartment List. It falls just behind Seattle. This report follows closely on the heels of one that says Denver leads the nation in apartment industry job openings. From 2000 to 2016, the report said that Denver metro spent $12 billion on new multifamily construction. Without controlling for population, this lands Denver at number 11 out of 25 metros for the most multifamily construction spending. New York City is first on that list. Controlled for population, the top five metros spending the most are Seattle, Denver, Dallas, Portland and Charlotte, respectively. Denver's spending on new residential, in specifically the multifamily sector, increased 12 percent from 2000 to 2016. The report from Apartment List said that new residential construction plays a "crucial role" in maintaining the affordability of housing, because it adds new housing units close to the urban core. These new housing units can help soften rent growth, and dense urban areas that support multiple transit options can reduce commute times and promote sustainability, the report said. However, Apartment List also released a report that said rent increased in 2017, despite an influx of new inventory. Though the multifamily sector continues to grow in the metro, decreased affordability for lower-income residents remains a contentious issue throughout the metro. Mayor Michael B. Hancock announced yesterday an initiative to double the affordable housing fund in order to help address the issue. Across the metro, affordable apartment complexes targeted for residents earning between 30 and 60 percent of area median income continue to break ground, including projects in Stapleton, Adams County, and Aurora. The data from Apartment List's report is based on the Census for the Bureau of Labor Statistics. (Denver Business Journal)

 

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CURRENT

1 MONTH PRIOR

1 YEAR PRIOR

FED TARGET RATE

1.75

1.75

1.00

3 MONTH LIBOR

2.36

2.25

1.16

PRIME RATE

4.75

4.50

4.00

10 YEAR TREASURY

2.96

2.87

2.24

30 YEAR TREASURY

3.14

3.10

2.89