Denver council decides not to buy halfway house for $26.2 million

The Denver City Council decided Monday not to buy this halfway house.Photo byGoogle Street View

The Denver City Council decided Monday not to buy a halfway house at 570 W. 44^th Ave. for $26.2 million.

The council voted unanimously against the proposal. Before the vote, Council President Amanda Sandoval told members the mayor’s office had requested they vote against the purchase.

City Council member Amanda Sawyer asked Real Estate Director Lisa Lumley if the city would ever purchase a property for more than the assessed price. Lumley said they would.

The city currently leases the space, which is used for a residential community re-entry from prison program. Called the MOORE Center, or Men Overcoming Obstacles Re-Entry, the Second Chance Center runs the space, according to a presentation last month from city staff to the Finance and Governance Committee of the City Council.

Even though the city decided not to purchase the property, the lease runs through 2034 so it will continue to be used as a halfway house.

In 2019, Denver officials decided to close six city halfway houses run by private corporations, such as CoreCivic, the presentation explains. The city in the meantime has bought some of their properties. Lumley said the acquisitions are necessary and strategic because the sites already are zoned for community re-entry facilities. The city can avoid public pushback such projects generate by buying properties already zones for that use.

Property in excellent condition

Lumley told the committee the 33,000-square-foot property, which previously was known as Fox Center and run by CoreCivic, is in excellent condition. Payments on the property would have cost the same as rent, which is $1.8 million annually up to $2.3 million closer to the end of the 10-year lease. Lumley said the impact on the city budget would have been cost neutral or may even have resulted in savings. The facility opened in June and provides 100 beds, according to the presentation.

The more halfway houses Denver owns, the shorter the waiting list for parolees looking to leave prison. The list has been as long as eight months, city staff said. The current wait is about three and a half months, according to staff, but they would like to get it down to four to six weeks.

The city purchased Tooley Hall, 4280 Kearney, which has 57 beds. Denver also purchased properties at 2023 Dahlia and at 4511 W. 48^th Ave. The 48^th Avenue property is undergoing renovations and will open next year.

City ownership increases success rate

Council member Paul Kashmann asked during the committee meeting whether city staff has seen improvements at the halfway houses since the city took ownership. Staff said the city is seeing a success rate of about 65%, which is slightly higher than it was under private ownership.

Council member Darrell Watson praised the model of having a service provider like Second Chance Center embedded at the halfway houses. He said having people with lived experience run the homes is “a much better concept.”