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N.Y. nonprofit joins city's effort to revitalize

$50 million over 5 years target for Seedco-led entity

Joanne Kelley, Rocky Mountain News

Published February 27, 2007 at midnight

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The city of Denver unveiled plans Monday to revitalize its poorest neighborhoods by teaming with a New York-based nonprofit with a national reputation for quickly attracting new capital to distressed areas.

The partnership with Seedco Financial Services aims to create new jobs and promote affordable housing and commercial development in depressed areas such as Montbello and Lincoln Park, among others.

"We've been trying to get things going in these neighborhoods for years," said Denver City Council member Doug Linkhart. "We just don't have that much money. That's why we go to (a group in) New York."

Seedco was chosen to operate the new financing entity - what's known as a community development financial institution. It will partner with local institutions, both public and private, to pump more than $50 million into the Denver area over the next five years.

"We don't see our money operating by itself," said Seedco Financial President William Grinker. "We'll leverage local resources."

Grinker said initial projects likely will focus mainly on mixed-use developments that have both residential and commercial components. He said his group tries to selectively engage in "high-risk lending" to provide financing "where conventional financing is not available."

His company played a major role in helping small businesses in lower Manhattan recover from the disruption caused by the Sept. 11, 2001, terrorist attacks. Seedco has also done work in Memphis, Tenn., and other Southern cities.

Denver Mayor John Hickenlooper noted that cuts in federal "block grant" funds have made it even more difficult for the city to support community development projects. Denver has lost about $2.1 million, or 18 percent, of that funding in the past few years.

"For a great part of our community, there is no piggy (bank)," Hickenlooper said in announcing the launch of the new entity.

Few financial institutions have been willing to fill the gap, said Jacky Morales-Ferrand, director of the city's division of housing and neighborhood development.

"The private sector was not investing in low-income opportunities," Morales-Ferrand said.

The city itself plans to invest $2.7 million in the organization in 2007 and about $15 million over five years.

Seedco soon will set up a Denver office and hire local staff to carry out its economic development strategy for the city. The Colorado Housing and Finance Authority will provide the new organization with office space initially.

Nationally, Seedco manages about $178 million in assets and offers a diverse range of loan funds and technical assistance.

Details of the project

The city of Denver has launched a "community development financial institution" that initially will focus on several depressed neighborhoods, including the areas of West Colfax, Villa Park, Sun Valley, Lincoln Park, Five Points, Montbello and Clayton.

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