Fitzsimons Village – A Nationwide Boondoggle!
With the unforeseen coerced rezoning of the Fitzsimons boundary redevelopment area (FBRA) in 1997 all existing perimeter activities, business, commercial facilities, gas stations and restaurants were all forced by an Aurora council rezoning. Every single existing entity was now going to be demolished with or without owner approval. Either through a forced property sale, no building permit issued, or newly restricted development guidelines originated by the city of Aurora, headed by mayor Ed Tauer and the Fitzsimons boundary redevelopment plan of 1997. All existing vertical structures were going to be leveled to the ground. With or without owners consent. There would be no exceptions. Private property owners rights were circumvented. All the perimeter land emitting from the CU Anschutz Medical Campus would be used at the desecration of the city of Aurora, Fitzsimons redevelopment authority(FRA) leadership headed by mayor Ed Tauer. The entire focus of the perimeter feasibility redevelopment plan was to obtain blight condemnation and the development of the future entrance to the CU Anschutz medical campus.
After the CU Anschutz medical campus perimeter boundary redevelopment plan was conceived and conceptualized there was no construction activity for the next 13 years. Not one single entity was interested in the haphazardly planned CU Anschutz Medical Campus. With greedy Aurora mayor Ed Tauer concerned there was zero tax revenues being generated after more than a decade, eventually a private out of state developer Corporex began construction on Fitzsimons village across from the isolated CU Anschutz medical campus.
Corporex is a privately owned firm with over a 50 year history in pioneering building design approach, creating exceptional value, through the 70’s and 80’s guiding their investment philosophy measuring acceptable amounts of risk and reward through their past experience as a builder, operator, and management through business cycles. A Corporex cultural shift has occurred from physical structures to investment in talented people who are necessary to build and manage these business. Delivering superior returns to investors through highly selective management. Corporex has developed more than 18 million sq. ft. of commercial real estate across the United States over 1 billion in assets. Offering unmatched experience in efficient construction and value engineering.
In 2010 phase one Corporex began construction on the 32 acre, 80 million dollar Marriott Spring hill suites hotel with 157 rooms, 160,000 sq. ft. office space, 16,000 sq. ft. of retail space and a First bank out pad. The Aurora city council provided 17 million dollars in tax incremental financing(TIF) for infrastructure improvements. The city of Aurora partner with Corporex and committed 25 million dollars to finance and own the 30,000 sq. ft. conference center and 500 space parking garage. Using taxpayer financing. Now deceased mayor Steve Hogan stating we will look back on this as a change to what’s happened in this part of Aurora. Taxpayers are now the reluctant owner of the conference center and parking garage.
In 2016 phase two, Corporex constructed a 196,000 sq. ft. class A office, 12,000 sq. ft. of retail space, and a 249 room Hyatt Hotel, with the city of Aurora issuing 28 million dollars in tax increment financing bonds(TIF) subsidizing the development of Fitzsimons Village. Corporex CEO Mark Witkiewicz stating this is something Corporex has always envisioned. This next phase of Fitzsimons Village development will provide meeting space for healthcare and bio science professionals for trade shows, industry specific events, and conferences. Wendy Mitchell president of Aurora Economic redevelopment stating. Aurora continues to play a major role in Colorado’s bio science industry, this project will create 600 construction jobs and 200 permanent jobs. CU University of Colorado hospital president John Harney stating this will help keep teaching seminars on site instead of Denver.
In 2019 Corporex sold a 4.5 acre parcel of land at Fitzsimons Village to Legacy partners a privately owned real estate developer to construct a five story, 363, one, two and three bedroom Fitzsimons apartments with 497 parking spots. Located in the newly established opportunity tax zones created by the Trump administration to help revive low income inner communities. Named the Legacy at Fitz will include fitness center, yoga, observation deck, pool, courtyards, outdoor kitchens, and fire pits. Legacy partners was founded in 1968 stating they know what people want, creating communities that are relevant today. Legacy partners has developed and purchased over 60,000 apartments in 8 states, and manages over 14,000 apartment homes, with a gross value over 2 billion dollars, consistently returning exceptional results, by adapting to evolving trends, being a trendsetter with the best trained experienced personnel management team in the industry using comprehensive computerized operating systems that generate up to the minute cash flow analysis.
Financing was provided by Griffin institution capital. Griffin CEO Kevin Shield’s states: We have assembled a best in class multifamily development partners and this opportunity zone was culled from over 3 billion dollars in potential investments by our real estate team. Griffin capital has owned, managed, sponsored or cosponsored over 17 billion in assets. Griffin Capital senior executives have over 20 years experience and executed over 650 transactions in excess of over 22 billion dollars in value. Geffen Capital has zero experience in ESG knowledge, implementation, and is a dinosaur in todays financial arena. However the perfect financial partner for Corporex as these 2 obsolete, archaic real estate dinosaurs align to build and finance outdated, brown, obsolete, commercial real estate adversely affecting the Aurora community. Subject to lower property/appraisal valuations as the world now incorporates net zero real estate.
Fitzsimons Village Decades Behind In Commercial Real Estate and Financing!
Corporex, Legacy partners, Griffin capital, Fitzsimons redevelopment authority(FRA), and the city of Aurora. All billion dollar partners with a track record for decades not one principal addressed the number one commercial real estate problem. With real estate emitting 40% of the nations green house gases this is the number one concern of climate change, now being addressed by the Biden 2050 climate plan and the newly instituted SEC ESG climate task force. US government regulations will debut in early 2022 concerning mandatory ESG disclosure requirements. Additionally with the recent COP26 meeting net zero real estate is now the future of all construction worldwide.
Colorado House bill 19-1261 Colorado’s climate action bill has passed, and provides a framework for reducing Colorado greenhouse gas emissions(Co2) by 26% by 2025, 50% by 2030, and 90% by 2050.Additionally The Colorado Air Quality Control commission(CDPHE) has been directed to develop rules to achieve Colorado’s climate goals. In 2019 Senate bill 19-096 requires a greenhouse gas inventory, to inform Colorado policymakers and direct the Air Control Quality Commission rules to achieve these Co2 reductions within the designated timeframe. A 2019 Global strategy group poll found 84% of Colorado voters want Federal climate change reform and 79% of Colorado voters want 100% Colorado clean energy by 2045. Sixty one percent(61%) of Colorado voters support the state legislature enacting strong measure to combat climate change. Fitzsimons Village has FAILED ON COMPLIANCE!
What this accurately illustrates, documents, and nationally discloses is this antiquated Hodgepodge line up of partners has archaic obsolete leadership, zero strategic analysis, Noncompliance with forth coming Federal and state requirements, leading to outdated financing. With 37 trillion dollars of sustainable assets now under management world wide expanding exponentially to 53 trillion by 2025. After more than a decade, this selected obsolete partner alliance has zero integration of ESG at the strategy level. Not one single person has current ESG skills, leadership, or expertise. A complete failure of strategic alignment of industry partners. A common problem emitting from the entire CU Anschutz campus and surrounding perimeter area.
There is no energy/water efficiency incorporated into up to the minute cash flow analysis. There is no ESG investment grade data compiled with up to the minute accuracy that stakeholders expect. Therefore Legacy partners is emitting false misleading propaganda as their up to the minute cash flow is 30% higher than net zero certified building. This entire 200 million dollar misplaced investment in Fitzsimons Village has not been evaluated for financial exposure to the impacts of climate change. A key structural financial trend missing. Completely opposite of what each one of these partners state. This adversely effects the holding period as required by Griffen Capital and the Opportunity zone tax deferment. Fitzsimons financial stakeholders that have financially invested in Fitzsimons Village have not been properly informed with due diligence concerning climate change transitional risks, greenhouse gas emissions data is not collected or disclosed. Peak operating efficiency, green certification, ESG incorporation which are financially material to an investments financial performance. This includes aurora taxpayers. Completely mislead the public, investors and the surrounding community.
The EU has the Green taxonomy debuting in 2022. Over 1 trillion dollars in green bonds has been issued to date, over 500 billion in ESG bonds. The recently elected green president Biden has implemented the 2050 net zero emissions plan 29 years away. The city of Denver has a 20×50 2018 climate plan. The city of Aurora has failed now for over 2 decades to integrate, green building, net zero building, any climate change policy, below market green financing, expedited green building permits. The entire misguided focus of the 1997 perimeter study was condemnation and focusing on the entrance to the CU Anschutz medical Campus. Forcing and displacing low income workers out of affordable housing and becoming CU Anschutz refugees now living in unauthorized tents. A textbook example in how to divide a community. Specifically a failed response to the “S” social in ESG.
An adverse community result of these sub par selected partners, with zero experience in health care real estate, climate science, ESG, green certification, net zero building, the entire Fitzsimons Village is constructed to conventional deteriorating “brown” building techniques. Over 200 million dollars in construction using selected taxpayer funding, TIF delayed assessments, Aurora joint venture built to obsolete construction methods. There is no Energy Star, USGBC LEED certification, GRESB, Passive House or Net Zero certification. Therefore Fitzsimons Village is constructed to conventional archaic, decades old “brown construction” subject to emitting more greenhouse gases, no energy or water efficiency, lower brown appraisal, higher monthly operating costs, lower lease rates, subject to increased government regulation, lower indoor productivity and higher financing rates. This is the type of failed leadership emitting from the city of Aurora who completely failed their taxpayer fiduciary obligations by not incorporating green building, net zero construction, climate finance guidelines in property which was rezoned and coerced from private citizens and rezoned is now a national determent to the Aurora taxpayer community. Fitzsimons Village is a community liability not a community asset as erroneously stated by these officials.
Additionally as each year passes, these “brown” obsolete constructed buildings and apartments can be appraisal comps to nearby Central Park which is built to Energy star standards. Financially benchmarking the negligence and false propaganda emitted from these so called “Leaders”. Disenchanted financial investors from Griffin Capital now have public data, real estate appraisal comps, SEC disclosure requirements, ESG climate disclosure regulations available directly comparing the publicly emitted false rhetoric. As these greedy leaders selected and abused a government opportunity zone to construct this black swan. With an opportunity zone Federal tax requirement of a 10 year holding period. A direct comparison of a Fitzsimons Village “brown appraisal” to a Stapleton apartment “green appraisal” over a declining 10 year period. Therefore Fitzsimons Village is now a national textbook example of bifurcation of the real estate market.
With over 30 million taxpayer dollars abused, unscrupulously used to finance substandard conventional “brown” depreciating real estate. Tax assessment delayed using TIF to finance a high emission greenhouse emitting commercial project. Taxpayer’s are now financially committed and obligated to finance archaic 30 year old obsolete construction building techniques. The entire world is moving towards, sustainability, green building, net zero building and ESG financing. Completely absent from all the principals and missing attributes from Fitzsimons Village. Not one partner has any ESG knowledge. Sustainability is now a priority on Wall Street and worldwide markets.
Fitzsimons Village Is Not Well Certified
While the absence of any green building or net zero certifications adversely effects the Fitzsimons Village unorthodox development. Individuals are now spending 90% of their time indoors. The quality of indoor air is now a priority in all commercial real estate developments. Specifically after Covid 19. The indoor environment is more contaminated than the outdoor environment. The indoor environment contains carbon dioxide, carbon monoxide, radon, formaldehyde and asbestos. These air borne contaminants effect mental capacity. However with failed leadership in the CU Fitzsimons redevelopment authority(FRA), no net zero building expertise in the selected contractors, no independent comprehensive analysis by a third party. No comprehensive integration was strategically implemented in any of the 11 million square feet of new construction on the CU Anschutz medical Campus and the perimeter surrounding Fitzsimons redevelopment zone. Over 500 acres which were received free from the taxpayer and conveyed to the City of Aurora and the Regents of University of Colorado Anschutz Medical Campus. A misuse of taxpayer assets.
While energy and water efficiency is important and incorporated into all types of green building certifications. Lowering the monthly operating costs of commercial real estate, which effects the capitalization rate. The focus has shifted to include the indoor environment. Indoor air quality(IAQ) cognitive function is of primary importance, Having wide range implications for taxpayer financing. Taxpayer financing is a privilege and has been abused.
Delos pioneered the indoor environment which overlaps with the green building certifications. Applying a holistic approach which impacts indoor health. Delos has partnered with world class Cleveland Clinic, Mayo Clinic, and Columbia University developing the Well living lab. Using seven elements air, water, nourishment, light, fitness, comfort and mind incorporated into Well certified real estate designation. With over 450 buildings, 100 million sq. ft. in 27 countries now certified. Leading to higher lease rates, faster lease up rates, and improved cognitive memory. All critical elements that are completely absent from any construction fully controlled and under the documented authority of the University of Colorado Anschutz medical campus regents and the City of Aurora Fitzsimons redevelopment authority.
With no outside expertise consulted or selected, there was no research performed. Leading to incompetent decisions paid for by taxpayers. Delos strategically aligned with world class medical alliances (Mayo, Cleveland Clinic) has performed a study called the cogfx study. The crux of this study confirmed with competent world class medical alliances clearly showing incorporating the Well Building Standard improves cognitive memory by 100%. Doubling mental capacity! This is due to decreasing indoor containment’s and increasing the flow of fresh air, which dramatically improves cognitive memory. As this Well certification is absent on 11 million sq. ft of new construction, every single student, researcher, faculty member, visitor, and patient are all negatively effected and have their cognitive memory operating at a 50% below market capacity. A dumbed down bio science research campus! Scientifically documented! Permanently positioning the CU Anschutz medical campus and the Fitzsimons Village with construction disadvantages, market disadvantages, adversely affecting all the indoor occupants!, trade show conferences, Operating at a 50% cognitive level! Combine this fact with lower MCAT exam rates for CU Anschutz students which leads to subpar biotech research, lower productivity from taxpayer capital(NIH grants).
With a 30 million dollar conference center unknowingly paid for by Colorado taxpayers, Constructed to attract all out of state bioscience trade shows, visiting Bio science professionals are now at a 50% cognitive memory mental disadvantage. In an industry that prioritizes tacit learning the entire CU Anschutz Medical Campus, Fitzsimons Campus and Fitzsimons Village trifecta is at a immense market disadvantage. This effects initial tenant interest, tenant loyalty, tenant recruitment, vacancy rates, lease rates, building appraisal, and the primary disadvantage human talent will always be below par(substandard). Conventional buildings are subject to increased regulation. Increasingly becoming a real estate outlier, subject to a brown appraisal discount as educated people prefer sustainability characteristics. Therefore the coerced unknowingly taxpayer is the disenchanted financier of substandard obsolescence conventional real estate.
Legacy At Fitz – Fitzsimons Apartments
With 363 1,2, and 3 bedrooms apartments constructed by Legacy partners and financed by Griffin Capital who state they have decades of experience in building and financing. Have recently constructed Fitzsimons apartments that are designed and targeted to be used by CU Anschutz Medical Campus employees, students, researchers, and medical personnel who will all be at a market disadvantage. There is no Certified Well or Fitwel certification. There is no climate friendly, sustainable living lifestyle, Therefore these CU Anschutz employees will be subject to indoor air pollution at work and at home(Over 90% of the time). Decreasing their cognitive ability, biotech research funded by tax payer dollars, decreasing their individual employee productivity by $6,500 annually according to a Harvard study. All these facts are missing from the false rhetoric emitting publicly from all these: leaders, CEO’s, Public officials, and CU Anschutz Institution.
Touted by The CU Anschutz Medical Campus as a student recruitment enhancement, CU Anschutz is the recipient of over 500 million dollars ANNUALLY in research grants, NIH grants are paid for by the taxpayer. CU Anschutz has over 4,000 students enrolled annually, 65% female, 28% minority now have a relevant financial metric from world class Harvard stating. Every CU Anschutz students productivity is decreased by $6,500 dollars annually! Scientifically documented by a world class Institute. Yes mayor Steve Hogan was correct We will all look back and see the change in this part of Aurora. Permanently positioning the City of Aurora and the CU Anschutz medical campus as a second tier biotech research campus.
Fitzsimons Hotels
There are three hotels less than 3000 feet from the beleaguered CU Anschutz medical campus. The Hyatt Regency, Springhill suites, and newly constructed Hyatt House. 140 rooms, 8000 sq. ft. of retail constructed in a tax advantaged opportunity zone on the corner of Colfax and Peoria at a cost of 43 million dollars. The Hyatt House is also constructed to conventional brown building construction techniques.
Carbon Lighthouse delivers climate solutions to commercial real estate portfolios. Recently polled 1,000 US consumers about indoor air quality(IAQ). In a survey 77% responded that proof about a hotels IAQ would impact their decision where to stay. With 52% overnight visitors would be willing to pay more to stay at a hotel with better IAQ. None of these hotels have good indoor air quality. There is no green certifications, Well, or Fitwel certification. Not one of these hotels can produce proof of Indoor Air Quality. Therefore every single visitor to the CU Anschutz medical campus hotels, and perimeter buildings inhale polluted indoor air. Which is now a priority with Covid 19. Additionally there is no verbal or written communication emitting from the CU Anschutz concerning indoor air quality…from a medical research campus and hospital. This one simple fact clearly documents how the 500 million dollar’s in annual research grants are not used to benefit the community, Fitzsimons campus, CU Anschutz hospital or the tax payer financed development in the Fitzsimons redevelopment zone. Another missed fact, documenting the adverse effect of a second tier CU Anschutz medical campus education.
World Class Sustainable Architecture
While the city of Aurora and the beleaguered CU Anschutz medical campus operate on a small minded, second tier, obsolete mentality. Frivolously consuming valuable resources, Legitimate forward thinking world class leadership is available outside the obsolete municipal trifecta™ CU Anschutz medical campus.
The highest standards of Energy, water and waste. Over 400,000 sq. ft. of commercial sustainable apartments and commercial buildings. 76 complex in New York. One, two, and three bedroom apartments adjustable to meet changing market demands. Using outside energy consultants, sustainable architecture and diversified engineering teams. Systems include:
Hybrid solar thermal and photovoltaic panels deployed on roofs, overhangs and courtyards generating energy and storing the energy at night on site storage batteries. Incorporating geothermal heat pumps using the ground as energy storage. State of the art wind energy.
Storm water run off stored on site and treated on site. Used for irrigation, recycling, repurposing and converting to solid state energy. Storm water stored on the roof and heated by solar energy ready for immediate consumption. 100% total of water consumption reduced to zero through, collecting, filtering, storage, reusable for toilets, and irrigation. All waste composted, recycled or incinerated on location producing zero landfill waste contribution.
Sustainable architecture flexible housing accommodating changing market conditions. One bedroom apartments converted into 3 bedroom apartments for like minded students. Offering LED lighting and bilevel lighting controls. Possibly offering more studio apartments for students on a restricted financial budget.
Achieving three(3) separate green certifications: NYSERDA building, Passive House, and Net Zero energy. Aligning with the triple net zero Energy standard. Energy, water and waste. addressing climate change and housing equity. A sustainable asset and serving the community
Every apartment has a built in state of the art aquaponics farming for live fish and individual vegetable gardens, Communal greenhouse for vegetables, organics, urban farming, and designated wetland. Facilitating individual mental relaxation.
As we have now benchmark and documented the stark bleak contrast between a failed municipal trifecta™ CU Anschutz medical campus and a triple net zero development. In the past 2 years over 60 million sq. ft. in net zero real estate has been constructed in the United States. With greenhouse gas emissions accounting for 40% of current emissions, embodied carbon accounts for 11% the current brown building which is now a larger part of the problem. With the Global reporting initiative(GRI) Climate related financial disclosure(TCFD), Global real estate sustainability benchmark(GRESB) key stakeholders, financiers, institutions, are now all requiring ESG credentials. Otherwise there will be no financing available(coal plants) or if financing is obtainable there will be higher rates, passed onto the consumer. Fitzsimons Village fails on all these accounts, and will be discounted by a brown appraisal, due to the mismanaged leadership. Fitzsimons Village will never successfully recruit and retain world class talent, trade shows, researchers and medical personnel. The key element is missing from this selected group of leaders SUSTAINABILITY!
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