Intermodal Passenger Facility Planning and Decision-Making for Seamless Travel (2024)
Chapter: Appendix E: Denver Union Station Case Study
APPENDIX E
Denver Union Station Case Study
Introduction
Appendix E, a companion to Chapter 7 and Chapter 8, and presents a case study of governance, partnerships, funding, and financing of Denver Union Station [Union Station TOD Project | RTD-Denver (https://www.rtd-denver.com/about-rtd/projects/denver-union-station)]. A transit and real estate project rolled into one, the success of Union Station derives from coordination and collaboration among numerous public and private stakeholders, combining federal funding and financing with private investment to bring the project to fruition. The project anchors the city of Denver and serves as an economic catalyst for the neighborhoods surrounding the project. RTD (Regional Transit District, Denver’s regional transit agency) has estimated that the redevelopment of Union Station spurred $3.5 billion in private development in the surrounding area, with an annual economic impact of $2 billion. Private development at the station and in the surrounding area includes 3,000 residential units, 1.9 million square feet of office space, 250,000 square feet of retail uses, and 750 hotel rooms.
Evolving Governance
The development of Denver Union Station provides an excellent case study of how governance can change over time. The city of Denver originally laid out the Denver Union Station Master Plan in 2004. A supplement to the original plan was adopted in 2008 and included more concrete plans for redevelopment, including the creation of the Denver Union Station Project Authority (DUSPA), a nonprofit, public-benefit corporation formed by the City and County of Denver to finance and implement the project. Partners in DUSPA include RTD, the City and County of Denver, the Colorado Department of Transportation, and the Denver Regional Council of Governments.
Project elements were transferred to RTD, which operates and maintains them as a complete transportation district supplemented by contracts for some mobility services. Continuum and East-West Development Corporation (a joint venture called Union Station Neighborhood Corporation) is the master developer for the TOD project.
Innovative Financing
One of the challenges for the project was the Great Recession, which hit just as DUSPA was formed in 2008. Because of the resulting difficult financial market conditions, the project turned to federal financing opportunities. DUSPA, the public-benefit corporation created to finance and implement the project, secured $300 million in TIFIA and RRIF funds. It was the first time that the U.S. DOT combined a TIFIA and RRIF loan for a single project. The project was able to
Table E-1. Denver Union Station financing.
| Transportation Infrastructure Finance and Innovation Act (TIFIA) | Railroad Rehabilitation and Improvement Financing (RRIF) | |
| Loan amount | $146 million (30% of project cost) | $155 million (32% of project cost) |
| Interest rate | 3.99% | 3.91% |
| Term | 31 years | 29 years |
| Lien priority | Senior lien (rated A) | Subordinated lien (unrated) |
secure these loans thanks to pledged revenue from two primary sources: the establishment of a 30-year TIF district surrounding the station, and funds from a voter-approved 0.4% sales tax increase dedicating revenues for public transit projects in Denver. Table E-1 summarizes the two financing agreements.
Federal Grants
The Denver Union Station project also benefited from various federal funding and grant programs, including FTA Section 5309 [now the Capital Investment Grants (CIG) program]. In addition, the CIG program provided $1 billion for the construction of RTD’s A, B, and G Line light-rail/commuter service, which all originate at Union Station.
Public–Private Partnerships
Two master developers were involved in the project, which is also unique. Union Station Neighborhood Company focused on development of the area immediately surrounding Union Station, with the 19 acres previously owned by RTD sold off and developed by private real estate developers. The Union Station Alliance focused on the renovation of the historic station building, investing $35 million to convert it into a hotel with several ground-floor retail and restaurant tenants in the Great Hall, nicknamed “Denver’s Living Room.” A 99-year developer lease also includes an agreement that the hotel operator will pay for the long-term maintenance of the station building.
Value Capture
As mentioned previously, the debt service resulting from the TIFIA and RRIF loans is covered by future tax revenues from induced development. Private development at the station and in the surrounding area includes 3,000 residential units, 1.9 million square feet of office space, 250,000 square feet of retail uses, and 750 hotel rooms.
Abbreviations and acronyms used without definitions in TRB publications:
| A4A | Airlines for America |
| AAAE | American Association of Airport Executives |
| AASHO | American Association of State Highway Officials |
| AASHTO | American Association of State Highway and Transportation Officials |
| ACI–NA | Airports Council International–North America |
| ACRP | Airport Cooperative Research Program |
| ADA | Americans with Disabilities Act |
| APTA | American Public Transportation Association |
| ASCE | American Society of Civil Engineers |
| ASME | American Society of Mechanical Engineers |
| ASTM | American Society for Testing and Materials |
| ATA | American Trucking Associations |
| CTAA | Community Transportation Association of America |
| CTBSSP | Commercial Truck and Bus Safety Synthesis Program |
| DHS | Department of Homeland Security |
| DOE | Department of Energy |
| EPA | Environmental Protection Agency |
| FAA | Federal Aviation Administration |
| FAST | Fixing America’s Surface Transportation Act (2015) |
| FHWA | Federal Highway Administration |
| FMCSA | Federal Motor Carrier Safety Administration |
| FRA | Federal Railroad Administration |
| FTA | Federal Transit Administration |
| GHSA | Governors Highway Safety Association |
| HMCRP | Hazardous Materials Cooperative Research Program |
| IEEE | Institute of Electrical and Electronics Engineers |
| ISTEA | Intermodal Surface Transportation Efficiency Act of 1991 |
| ITE | Institute of Transportation Engineers |
| MAP-21 | Moving Ahead for Progress in the 21st Century Act (2012) |
| NASA | National Aeronautics and Space Administration |
| NASAO | National Association of State Aviation Officials |
| NCFRP | National Cooperative Freight Research Program |
| NCHRP | National Cooperative Highway Research Program |
| NHTSA | National Highway Traffic Safety Administration |
| NTSB | National Transportation Safety Board |
| PHMSA | Pipeline and Hazardous Materials Safety Administration |
| RITA | Research and Innovative Technology Administration |
| SAE | Society of Automotive Engineers |
| SAFETEA-LU | Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (2005) |
| TCRP | Transit Cooperative Research Program |
| TEA-21 | Transportation Equity Act for the 21st Century (1998) |
| TRB | Transportation Research Board |
| TSA | Transportation Security Administration |
| U.S. DOT | United States Department of Transportation |
