Vacant furniture store in downtown Greeley to get new life with the help of city funds

By Kelly Ragan

The old furniture store on 8th Avenue and 11th Street has been vacant for about five years, but it’s set to have a big new life. 

In fact, it’s set to represent the single largest capital investment in Greeley’s history, according to Benjamin Snow, the city’s director of Economic Health and Housing. The total expected cost: $71 million. The city is expected to pitch in about $3.1 million to help with development costs. 

The five-story residential development at 8th Avenue and 11th Street is set to include at least 194 apartments of varying sizes and a five-story parking garage.

Greeley City Council voted 7-0 to pass a resolution approving a redevelopment agreement for the property, solidifying a partnership between City of Greeley, the Downtown Development Authority (remember, they are two different taxing districts), and 1024 8th Avenue LLC.

“When we think about what we’re trying to do in the City of Greeley to increase density in our community with apartments, I think this is the perfect location for what we’re trying to do,” said councilmember Johnny Olson. “It brings in – not affordable, but very nice housing downtown, it helps with the businesses, connects people to the downtown. This is very much the kind of thing I am for in this location.” 

Councilmember Tommy Butler said this is the kind of project that will be great for downtown. 

“This is exactly what these kinds of funds are for,” Butler said. 

Mayor John Gates said he did hear from a constituent opposed to the project who voiced concern over building too many apartments in Greeley.

Gates said realistically, there are two options: the first is to leave an empty, dilapidated building empty. The second is to build something aesthetically pleasing and helpful to downtown Greeley. 

What can we expect with the project? 

The project has been in the works for about two years, Snow said. 

The proposed site plan calls for: 

• 20% studio apartments 

• 60% one-bedroom apartments 

• 20% two-bedroom apartments

The average unit size is about 742 square feet. 

The average rent is expected to be about $2.54/square feet, or about $1,885 per unit, with the smallest units starting at $1,525. 

The project is set to feature amenities including a 24-hour fitness center, heated pool for year-round use, outdoor courtyard with fire-pits and grill stations, and resident lounges. 

Milhaus, the developer, is an Indianapolis-based company that specializes in urban and multi-family developments. 

At the meeting, DDA Executive Director Bianca Fisher called the project exciting.

“I can count on one hand the number of developers we’ve had coming and looking to develop in our downtown,” Fisher said. “We are incredibly fortunate to have the local ownership and local property ownership downtown that advocates for fantastic partners and users – and we’re thrilled by the partners and company in Milhaus.”

Where does the city come in? 

Back in 2018, city council endorsed a redevelopment incentive program using Tax Increment Financing within the city’s redevelopment district. The idea is for the level of support coming from the city scales with the amount of private investment put into the projects. 

So what exactly is Tax Increment Financing? Someday this will come up in conversation around the dinner table, and you will feel like a smarty-pants for knowing this term. Remember us when you do. 

Tax Increment Financing, also known as TIF, is a financing method used by local governments to fund redevelopment projects or public infrastructure improvements in a designated area.

The intent, according to the U.S. Department of Transportation, is to improve the value of the existing properties and encourage new development in the district. 

TIF works by creating a special tax district in a particular area – in this case, downtown Greeley. The districts are often set up for 20 to 25 years. 

The city then freezes the property tax rate in the TIF district at its current level. As property values in the area then increase thanks to the redevelopment project or infrastructure improvement, the city then collects the additional tax revenue generated above the baseline. Essentially, the city borrows against the future increase in property tax revenues to pull the project off. 

Typically, TIF funds are used to finance the development of infrastructure, such as roads, utilities and public amenities to support new commercial and residential developments. 

Supporters of TIF argue that it can help revitalize neglected or underdeveloped areas. However, critics argue that TIF can divert tax revenue away from essential public services and school districts — essentially not paying its fair share of its growth impact on society.

Now back to Greeley’s role. 

The city has helped to fund projects using TIF before with projects such as the 55 Resort on 8th Avenue, The Maddie Apartments on 8th Avenue, and the University Flats project near the University of Northern Colorado Jackson Field.

For this project, the Downtown Development Authority is set to reimburse the project on net new property taxes paid by the developer and received by the DDA from the date of project completion through the life of the DDA tax increment district – which is set at 2032 – up to $1.7 million. 

The city is set to underwrite the project’s development fees based on the actual value of building construction up to $3.1 million.

“The funds are extended from a fund set up for this express purpose,” Snow said.