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FAA sees "numerous abnormalities" in Denver's Park Hill land swap, seeks more time to examine offer

The Federal Aviation Administration has requested additional time to review a proposed transaction by the city of Denver to give a developer another 20 acres of land at Denver International Airport as part of the land swap involving the former Park Hill Golf Course, CBS News Colorado has learned.

On Monday, CBS Colorado reported the mayoral administration of Denver Mayor Mike Johnston had quietly promised another 20 acres to the developer, Westside Investment Partners, which was swapping the 155 acre former Park Hill Golf Course the developer owned, for 145 acres of land at the airport. That brought the actual acreage from the city to the developer to 165 acres of undeveloped land at the airport.

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Park Hill Park on Wednesday CBS

Johnston said the city needed to do that because fiber lines were found beneath the Denver International Airport site, diminishing the value of the 145 acres that the developer had agreed to accept in exchange for the former golf course property.

The FAA could have immediately agreed to the additional acreage, but did not. In a letter dated Oct. 24, the FAA chided Denver over the land swap deal, saying there have been "numerous abnormalities in the process for this land disposal."

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CBS

"The FAA has requested additional time until November 21, 2025 to review the proposed transaction of the additional 20 acres to Westside (the developer)," wrote Laura Swartz, Communications Director for Denver's Department of Finance, in an email to Denver City Council members sent Wednesday afternoon. The FAA has a measure of oversight over the 20 acres in question because the city is proposing to remove land from Denver International Airport's land plan.

The federal agency did not object to the initial 145 acres given to Westside, which has already been transferred to the developer. But last Friday, the FAA notified the city that it wanted more time to review the additional 20 acres.

"The city is happy to comply with the FAA's request for more time to review the 20-acre transaction," wrote Swartz.

"This does not impact Park Hill Park," said Swartz.

Park Hill Park is the new name given to what was formerly known as Park Hill Golf Course. The new park opened to the public Tuesday for activities like walking and jogging.

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CBS

However, if the FAA somehow nixes the deal for the additional 20 acres, the city of Denver will be on the hook for an additional $1.5 million payment to Westside Investment Partners, according to internal city documents obtained by CBS News under an open records act request. Those documents say the city has set aside a "contingency payment" that would go to the developer "...in case the city is ultimately unable to deed such additional 20 acres, (contingency payment) will be deposited in escrow pending resolution of whether the FAA will assert jurisdiction over the proposed conveyance of the additional acreage."

"We continue to believe this is a great outcome for the airport ... and for Denver residents," wrote Swartz, "who have received land for a new, large urban park in a much more accessible location."

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