Is it possible that a motel once valued at millions could be sold for just ten dollars? That’s the story of the Stay Inn right here in Denver. This four-story building at 12033 East 38th Avenue has a unique history. It reflects Denver’s efforts to address homelessness.
In 2023, the city of Denver bought the Stay Inn for $9 million. The plan was to convert the Stay Inn into transitional housing. It aimed to provide 95 guest rooms for people exiting homelessness. The city hoped to open the Stay Inn by the end of 2023. But, the project stalled. The Stay Inn remains unused to this day.
Now, Denver is looking for a partner to complete the mission. The city wants to sell the Stay Inn to an organization. This organization would turn the site into supportive housing. Denver listed the property for sale at just $10. This price is meant to entice buyers.
The city received $2 million in federal funding. This funding was from Housing and Urban Development. Most rooms in the Stay Inn had been remodeled. They included kitchenettes and fire sprinkler systems. Laundry facilities were also added.
Julia Marvin is a spokesperson for the Denver Department of Housing Stability. She said a private entity would be better equipped to manage the Stay Inn. They can handle the complexities of renovations. They can also operate it as supportive housing.
The selected partner must fund the acquisition. They must also cover due diligence and renovations. Renovations are expected to cost around $5 million. The $10 sales price makes the project financially viable.
The buyer must agree to keep the Stay Inn as transitional housing for 99 years. The housing could be offered to veterans, families, or couples. Any proposed sale must be approved by the Denver City Council.
Plans for the Stay Inn go back to 2021. U.S. Rep. Diana DeGette wanted to buy the property. She planned to use city and federal funds. She aimed to convert it into supportive housing. Budget negotiations in Congress stalled that plan.
The original owner, IH Holdings 16, planned to make the Stay Inn a nicer hotel. The pandemic changed those plans. IH Holdings worked with the city. They completed renovations before the sale. These included adding kitchenettes and upgrading systems. Hugo Weinberger, co-founder of IH Holdings, believed the Stay Inn would be a great asset for the city. It is close to a light rail. It could provide affordable housing.
Mayor Michael Hancock said the solution to homelessness is housing. The Stay Inn project shows Denver’s commitment. It aims to create more homes for unhoused residents.
So, while the Stay Inn stands empty today, its story is far from over. It represents Denver’s ongoing efforts to find creative solutions. These solutions address the complex issue of homelessness. The next chapter of the Stay Inn is yet to be written. It offers hope for a better future for many.