Denver may purchase halfway house for $26.2 million

570 W. 44th Ave. in Denver.Photo byGoogle Street View

The Finance and Governance Committee of the Denver City Council approved Tuesday buying a halfway house at 570 W. 44^th Ave. for $26.2 million.

The city currently leases the space, which is used for a residential community re-entry from prison program. Called the MOORE Center, or Men Overcoming Obstacles Re-Entry, the Second Chance Center runs the space, according to a presentation from city staff to the committee.

Even though the committee approved the purchase of the property, the full City Council still must sign off on it, too. The city hopes to close on the property in December, according to the presentation.

In 2019, Denver officials decided to close six city halfway houses run by private corporations, such as CoreCivic. The city in the meantime has bought some of their properties. Denver Director of Real Estate Lisa Lumley said the acquisitions are necessary and strategic because the sites already are zoned for community re-entry facilities.

Property in excellent condition

Lumley said the 33,000-square-foot property, which previously was known as Fox Center and run by CoreCivic, is in excellent condition. Payments on the property will cost the same as rent, which is $1.8 million annually up to $2.3 million closer to the end of the 10-year lease. Lumley said the impact on the city budget will be cost neutral or may even result in savings. The facility opened in June and provides 100 beds, according to the presentation.

The city is being offered right of first refusal on the purchase of the property. The owner plans to sell it regardless of whether the City and County of Denver is the buyer, Lumley said.

More capacity, shorter waiting lists

The more halfway houses Denver owns, the shorter the waiting list for parolees looking to leave prison. The list has been as long as eight months, city staff said. The current wait is about three and a half months, according to staff, but they would like to get it down to four to six weeks.

The city purchased Tooley Hall, 4280 Kearney, which has 57 beds. Denver also purchased properties at 2023 Dahlia and at 4511 W. 48^th Ave. The 48^th Avenue property is undergoing renovations and will open next year.

City ownership increases success rate

Council member Paul Kashmann asked during the committee meeting whether city staff has seen improvements at the halfway houses since the city took ownership. Staff said the city is seeing a success rate of about 65%, which is slightly higher than it was under private ownership.

Council member Darrell Watson praised the model of having a service provider like Second Chance Center embedded at the halfway houses. He said having people with lived experience run the homes is “a much better concept.”