Downtown Denver business leaders are banking on two Colorado brands specializing in ice cream and milk tea to bring more families and visitors to 16th Street when its renovation finishes this fall.
Sundae Artisan Ice Cream and Milk Tea People were loaned a combined $1.4 million last month by the Downtown Development Authority (DDA), which oversees a special district raising taxes for downtown development projects.
It’s a sliver of the $100 million awarded by the district to ten projects — including $23 million to buy two parking lots and $30 million for improvements to Civic Center park — though its boosters say the shops are the kind of food and drink establishments they want to see on the mall.
“That is definitely a part of what our emphasis is, is getting good, relatable restaurants … in order to entice people downtown,” said DDA board chair Doug Tisdale.
Bringing people back to 16th Street is the goal now in front of the DDA and the city after a four-year, $175 million mall redevelopment project, along with the COVID-19 pandemic and outcry over crime and homelessness, turned the street into a shell of its former self.
Some of the restaurants, both chains and locally owned, that closed during those tough years included Bistro LeRoux, YumCha Dumpling, Panera Bread, Mellow Mushroom, Hard Rock Cafe, McDonald’s, Ana’s Norwegian Bakeri, Jason’s Deli and Sofia’s Roman Pizza.
With redevelopment nearing completion, though, Sundae and Milk Tea People plan to design signature locations in their respective pockets of the district, Tisdale said.
Sundae, which was founded in Vail by Kent Beidel in 2016 and has five locations, is renovating a corner property at 1600 Glenarm Pl., just a few blocks from Civic Center. The building’s ground floor lay vacant for years after the previous tenant, Cook’s Fresh Market, left in 2019.
In its application to the DDA, the company described its plan to create a “flagship” location with wide exterior windows so pedestrians along 16th Street can watch employees rolling waffle cones. Sundae also proposed an open kitchen where customers could see workers churning and freezing ice cream. An attached classroom could host ice-cream making workshops.
“I immediately thought of Ghirardelli Square in San Francisco,” said Tisdale, referring to the historic block that is home to the world-famous company’s original chocolate shop and the Ghirardelli Chocolate Experience, where tourists are lured by the sights and scents of fresh chocolate.
Tisdale and the board loaned $750,000 to Sundae Artisan Ice Cream to help it realize its vision. The company’s request was “a reasonable amount,” he said, as it was investing $2.45 million of its own money into the Glenarm shop and needed the extra funding to turn it into an attraction.
“That’s a very exciting, catalytic, transformative project,” he said.
In a statement, Sundae’s administration director Molly LaBrecque said the “financial support is extremely helpful to ensure that we are able to execute a robust design for a highly visible attraction on one of the most prominent corners of downtown Denver.
“Our goal for the location is to become a must-see, sought-after food destination for Denver locals and visitors alike,” the statement continued. Sundae doesn’t yet have an opening date.
In its own loan request, Milk Tea People proposed moving from its existing unit on 1641 Market St. to a larger, more prominent space within Market Station, a business hub off 16th Street, Tisdale said. Co-founder Kevin Ung said the move would help the business host larger groups and make the tea shop a place where people could gather downtown.
The DDA agreed to lend Milk Tea People $640,000 for its relocation and expansion within Market Station. Tisdale said it is about half of the total project cost. Milk Tea People will relocate in the spring, Ung said.
The terms of the loans are still pending approval from a majority of the city council, which Tisdale said needed to sign off on any DDA awards over $500,000. He said he had confidence the businesses would stick to their contracts and repay their loans over time, with interest.
The council is expected to vote on the loans in a matter of weeks. Council Member Chris Hinds, whose district encompasses downtown and east along Colfax Avenue, said he was unaware of but would learn more about the loans when contacted by The Denver Post.
The DDA was established as a special taxing district that focuses on downtown infrastructure projects. Last year, voters allowed it to take up to $570 million in added debt to boost efforts to spruce up downtown. Its development zone includes most of downtown between 22nd Street and Speer Boulevard, and Union Station southeast to Civic Center.
Businesses within the development zone can apply for funding for structural upgrades, business expansion, art installations or pedestrian improvements. The DDA is looking at more than 100 other applications, Tisdale said, with the goal of funding projects that will drive economic growth.
The DDA can award the publicly raised funds as loans, annual payments or in lump sums, according to its application portal.
The city of Denver ran its own grant program for existing businesses on 16th Street struggling during construction. It stopped taking applications in June, according to the program website. The city had doled out hundreds of grants to 16th Street businesses ranging from $2,000 to $15,000 since 2022, grant records show.