Colorado city considers development proposal supported by Peyton Manning

A proposed development in Littleton could bring in a new restaurant, event space, a turf field for the community and connections to trails. The proposed project, 1st Street Farms, is inspired and supported by Denver Broncos legend Peyton Manning.

The city says the project will create a vibrant, community-centered destination. However, the developer wants millions of dollars up front through a proposed partnership to get the project underway and help close a funding gap. City leaders have since expressed concerns about taxpayer funds being used.

Many believe bringing 1st Street Farms to Littleton is a touchdown for the city. It's a proposed 5-acre community hub that would be built near Santa Fe Drive and Mineral Avenue, along South Platte Park.

"It's a really exciting project that I'm hoping happens in Littleton," Councilman Merrill Stillwell told CBS Colorado. "It's also in an area of town that could really use something like this."

Concerns do remain about where some of the money to build the project is coming from. Gastamo Group, a Colorado-based hospitality company, is asking the city of Littleton for a $5.5 million incentive package with $2 million up front to help close a funding gap due to high infrastructure costs.

"That's part of my concern, and why I think handing out cash up front is a bad use of taxpayer funds, and we're also taking on the risk of a development project," Stillwell said. "My concern is also that we're setting a precedent that every new business that comes to town is going to be asking for money. We just don't have the money as a city to afford that kind of incentive package."

The city also won't collect sales tax on the project for its first five years, meaning it would take over a decade for the city to get its money back through sales taxes.

In a statement, the city says it's considering the proposed partnership because it benefits the local economy, and the project would remain financially accountable. 

"The proposed partnership would involve sharing the sales tax generated by the project and a forgivable loan, to be funded through use tax revenues generated by development and that would otherwise be used for future capital projects — not from the city's general fund or voter-approved revenues — and would be structured as a performance-based public-private partnership," the city shared. 

Peter Newlin, CEO of Gastamo Group, spoke about the project during a study session in mid-April.

"When I see what he (Peyton Meyton) did for the Broncos, when I see what he does for the community around, when I see the sense of hope he builds, when I see the joy that he creates," Newlin continued. "How do we tell the story of Peyton Manning through the commitment to the Broncos, through the legacy of football and his family, to the connection that he has in each of us?"

The city says the project will generate revenue and produce more than $35 million in annual economic impact, create more than 300 local jobs and attract visitors. The event space would also be available to the city and local nonprofits at no cost.

Newlin added that he also wanted to build something accessible to everyone, that everyone in the community can use.

"This is the center of life. This is the community hub," Newlin said. "We wanted to build something that stood in time. We wanted to build something that is a home for everyone."

Pat Dunahay, a nearby resident and business owner, believes the project will be beneficial to the city, and its location is also among the last undeveloped areas in Littleton until recently.

"It's a special piece of ground and a special project. Peyton Manning is a real, true grassroots celebrity, and I don't think you're going to see a lot of these project opportunities come Littleton's way," Dunahay said. "We want special, really cool places like this that will go on for many, many decades."

If the project does not go through, about 270 townhomes will be built instead.

Stillwell hopes the city doesn't have to take the risk but can find ways to incentivize the developers to move forward with the project.

"I would like to go back to the drawing board and figure out a way that doesn't take money away from needed programs and still incentivizes them to come to Littleton," Stillwell said. "We're hopeful to work with them over the long term, and I'm excited about it. Let's just be smart and try and figure out a fair deal for both sides."

"I have full faith in our council, and our city leadership will figure this out, and that it's fair and reasonable for both sides," Dunahay said.

Negotiations are still underway to finalize the agreement. Recommendations will be brought back to Littleton City Council June 9, when the city council is also expected to vote on it.