A project to transform mostly vacant industrial buildings into a mixed-use district in the Cole neighborhood received key approvals Monday night from the Denver City Council. 

The council unanimously approved multiple items to propel the redevelopment of the former site of the Denver Rock Drill Manufacturing Co., located at 1717 E. 39th St., opening the doors to over 1 million square feet of development through a plan that will incorporate the over 100-year-old buildings on the property. 

The council approved a rezoning request, the establishment of an urban redevelopment area, public financing for the project and a development agreement with OliverBuchanan Group. 

Proposed uses at the site include 700 to 800 residential units, 40,000 to 60,000 square feet of office space, 100,000 to 150,000 square feet of retail and 150 to 220 hotel rooms. It would also incorporate 900 to 1,200 parking stalls and 71,000 square feet of publicly accessible open space, information presented to the council shows. 

The total project cost sits just under $585 million, said Tracy Huggins, theexecutive director of the Denver Urban Renewal Authority. The project will, inpart, be funded through a tax increment financing area, or TIF, after the councilapproved an urban redevelopment plan.

The TIF area will span the overall site of the 8.4-acre property that encompassesthe adjacent right of way. The area is generally bounded by East 40th Avenue tothe north, Franklin Street to the west, East 39th Avenue to the south andWilliams Street to the east.

The use of tax increment will allow for the reimbursement of up to $39.1million of eligible project costs that could encompass demolition andabatement work, and the rehabilitation of historic buildings on the site, amongother items.

Between half and two-thirds of the site will be preserved for either new openspace or for the preservation of the historic buildings on site, senior cityplanner Tony Lechuga said.

The redevelopment area spans 6.7 acres. A rezoning request approved onMonday will allow for a 16-story development on the northwest corner of thesite, while the remaining portion will allow building heights of up to 12 stories.

A development agreement between the developer, OliverBuchanan Group, andDenver includes a vesting portion that will lock in the allowable buildingheights and the open space requirements for a period of 15 years.

“It assures that if we change that five years from now, they will still be lockedinto what they agreed to today,” Lechuga said.

Ten percent of the residential units will be made available to people who makeno more than 50% of the area median income, city officials said. Of the income-restricted units, 20% will be two- and three-bedroom units.

The project is meant to transform a site where pneumatic drills were oncemanufactured, and it was largely supported by those who spoke at thepublic hearings.

“We are excited to welcome new neighbors and businesses, and we hope youshare that excitement,” said Reed Raskin, on behalf of the Cole RegisteredNeighborhood Organization.

The Rock Drill site was purchased by the Weiss family in the 1990s andoperated as an industrial storage facility, but has sat mostly vacant since 2010.