The Denver Health parking lot at 155 W. Fifth Ave. in Denver on July 22, 2025. (Hayden Kim/BusinessDen)
A deal between Denver Health and a local developer could close in mid-August after the Denver City Council transferred public funds for a planned income-restricted housing project.
An LLC tied to developer Jeff Shanahan of Shanahan Development is under contract to pay $5 million for the 155 W. Fifth Ave. property, Denver Health spokeswoman Jacque Montgomery told BusinessDen.
The site in the Baker neighborhood is currently a parking lot. At 1.1 acres, the pending deal works out to $104 a square foot.
Denver originally lent Shanahan $5.6 million in federal American Rescue Plan Act dollars at 1% interest over 20 years to help finance an affordable housing project at 1530 W. 13th Ave. in the Lincoln Park neighborhood. He bought that 1.4-acre property in March 2023 for $5.75 million and told BusinessDen he would build about 190 units.
The project never broke ground. And this January, Shanahan sold the property for $12.5 million to an obscure LLC that BusinessDen later linked to the Denver Broncos. The property is just north of the shuttered state-owned Burnham Yard railyard, a possible site for a new stadium.
On Monday, without discussion, the City Council approved a measure that shifts that $5.6 million loan to a forthcoming project by Shanahan at the Denver Health lot.
“We saw an opportunity to contribute positively to addressing affordable housing in Denver,” Montgomery said in an email.
The new lot is zoned C-MX-8. That generally allows for a mix of uses up to eight stories, although projects with income-restricted units are typically eligible for additional height.
Shanahan, who did not respond to a request for comment, will have to build at least 60 rental units and at least 69 for-sale units, according to city documents. The rentals must include 15 units each reserved for those making up to 30%, 60%, 70% and 80% of the area median income. The for-sale units will be less restrictive, going simply to those earning no more than 80% AMI.
Shanahan has not submitted development plans to the city for the project, which city documents state must be completed within five years.
The Broncos, meanwhile, are still required to build housing at the property the team bought from Shanahan.
“The rental and occupancy covenant is recorded against title to the land, so the only thing that could be developed on that site is at least 190 affordable rental units, restricted between 30-80% AMI. Even if the current owner sells, that sale would still be subject to the covenant and the future owner would still be required to develop in accordance with the covenant,” Katherine Wamsley, spokeswoman for Denver’s Department of Housing Stability, said in an email.
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Read more: Broncos must build income-restricted housing after $7M deal by Burnham Yard
Read more: Amid Broncos talks, Denver Water tells neighbors it ‘intends’ to buy their property
Read more: Developer ‘sitting here in purgatory’ after acquisition notice from Denver Water
The Denver Health parking lot at 155 W. Fifth Ave. in Denver on July 22, 2025. (Hayden Kim/BusinessDen)
A deal between Denver Health and a local developer could close in mid-August after the Denver City Council transferred public funds for a planned income-restricted housing project.
An LLC tied to developer Jeff Shanahan of Shanahan Development is under contract to pay $5 million for the 155 W. Fifth Ave. property, Denver Health spokeswoman Jacque Montgomery told BusinessDen.
The site in the Baker neighborhood is currently a parking lot. At 1.1 acres, the pending deal works out to $104 a square foot.
Denver originally lent Shanahan $5.6 million in federal American Rescue Plan Act dollars at 1% interest over 20 years to help finance an affordable housing project at 1530 W. 13th Ave. in the Lincoln Park neighborhood. He bought that 1.4-acre property in March 2023 for $5.75 million and told BusinessDen he would build about 190 units.
The project never broke ground. And this January, Shanahan sold the property for $12.5 million to an obscure LLC that BusinessDen later linked to the Denver Broncos. The property is just north of the shuttered state-owned Burnham Yard railyard, a possible site for a new stadium.
On Monday, without discussion, the City Council approved a measure that shifts that $5.6 million loan to a forthcoming project by Shanahan at the Denver Health lot.
“We saw an opportunity to contribute positively to addressing affordable housing in Denver,” Montgomery said in an email.
The new lot is zoned C-MX-8. That generally allows for a mix of uses up to eight stories, although projects with income-restricted units are typically eligible for additional height.
Shanahan, who did not respond to a request for comment, will have to build at least 60 rental units and at least 69 for-sale units, according to city documents. The rentals must include 15 units each reserved for those making up to 30%, 60%, 70% and 80% of the area median income. The for-sale units will be less restrictive, going simply to those earning no more than 80% AMI.
Shanahan has not submitted development plans to the city for the project, which city documents state must be completed within five years.
The Broncos, meanwhile, are still required to build housing at the property the team bought from Shanahan.
“The rental and occupancy covenant is recorded against title to the land, so the only thing that could be developed on that site is at least 190 affordable rental units, restricted between 30-80% AMI. Even if the current owner sells, that sale would still be subject to the covenant and the future owner would still be required to develop in accordance with the covenant,” Katherine Wamsley, spokeswoman for Denver’s Department of Housing Stability, said in an email.
Read more: Broncos buying around possible Denver stadium site
Read more: Broncos, Denver Water talking about agency’s land near possible stadium site
Read more: Broncos must build income-restricted housing after $7M deal by Burnham Yard
Read more: Amid Broncos talks, Denver Water tells neighbors it ‘intends’ to buy their property
Read more: Developer ‘sitting here in purgatory’ after acquisition notice from Denver Water
