PROJECT COULD COMBINE FACTORY SPACE, HOUSING

$6 million Globeville project could also include affordable housing in Denver

Denver City Council to discuss $6 million Globeville deal.

The city of Denver is putting an unusual twist on development at a planned site in Globeville: A new project could combine affordable housing and space for manufacturers.

It’s the latest version of the hands-on approach that the city has taken to development. By buying up land and then negotiating with developers about how to use it, Denver hopes to shape the future of gentrifying areas.

On Monday, the Denver City Council will consider paying up to $6 million to buy a car dealership at 4995 N. Washington St. City staff hope the site will become housing and retail space, such as a grocery store — but they also hope to attract high-tech and craft manufacturers.

That’s because there’s intense competition for warehouse space in Denver, according to Jeff Romine, the city’s chief economist.

“It’s those critical jobs that bring dollars in and bring investment in from outside — other parts of the world or the U.S. that are buying products that are made here,” he explained. “Those are great jobs. To have a broad economy, we need those production-oriented jobs.”

The city still is home to a variety of small manufacturers, such as Meier Skis in west Denver and Birdon, which makes military bridge-building machines in northeast Denver.

But they face a triple threat in greater Denver: Beer brewers, cannabis growers, and housing and commercial developers all love warehouses. The average asking lease cost for industrial space in the metro hit an all-time high this year, according to CBRE.

“Suddenly, because it’s sort of gritty but also more bohemian — it becomes more desirable and a place where they can have popups,” said Mickele Bragg, who leads global marketing and plastics for Geotech Environmental Equipment.

Her employer owns a 125,000square-foot plant in the Clayton neighborhood. It’s just east of the old Rock Drill factory, which is slated now for a $250 million development and already hosts popular events.

She and Romine both are concerned about small businesses. Finding nothing in Denver, many are moving east toward Aurora, Bragg said. To Romine, that means that Denver is losing jobs and opportunities.

“That’s where you see that kind of nurturing of small business and entrepreneurship. We’re trying to re-establish, make sure we have opportunities for those types of business to grow,” Romine said.

The city hasn’t yet finalized its purchase of the North Washing--