After years of talks about what to do with underused state land in Lakewood, Colorado officials have cleared the way for an 11-acre overhaul that is supposed to look less like a sea of offices and more like a real neighborhood. The plan calls for a mixed-income community with roughly 120 affordable apartments, dozens of attainable for-sale homes, and a community building that packs in childcare and arts space, with construction slated to kick off in 2027. Local leaders and nonprofit partners say the goal is simple: make it possible for teachers, first responders, and other working families to actually live in the city they serve.
State approval moves project forward
The redevelopment crossed a major hurdle on Jan. 30 when the State Legislature’s Capital Development Committee signed off on the deal, allowing the Lakewood Complex project to shift from concept into financing, design, and full-on development, according to the Governor’s Office. The Department of Personnel & Administration’s Public-Private Partnership (P3) Collaboration Unit is steering the effort on parcels near the former DMV and other state offices at the Lakewood complex. State officials say construction is scheduled to begin in 2027.
What’s planned for the site
Early numbers for the site sketch out roughly 120 affordable rental units aimed at households earning about 30% to 70% of the area's median income. On top of that, the project is expected to add 50 to 60 attainable for-sale homes and another 10 to 20 deed-restricted units, according to the Governor’s Office. Plans also call for one large childcare center plus two in-home providers, a setup officials say is meant to help more parents stay in or rejoin the workforce. “Colorado needs more housing options for families at every income level,” Gov. Jared Polis said in the state announcement, framing the project as one piece of that larger puzzle.
Who’s building it
The state has lined up a trio of private and nonprofit partners: Metro West Housing Solutions, Oakwood Homes, and Elevation Community Land Trust. Together, they have said they intend to blend affordable units with open space and creative community uses, as reported by ColoradoBiz. Elevation CEO Stefka Fanchi, along with leaders from Metro West and Oakwood, has pointed to the project’s potential to lock in long-term affordability while also supporting local jobs and arts programming, rather than treating the site as just another housing subdivision.
How the state structured the deal
Under terms reported by BusinessDen, the state plans to sell about 6 acres along Reed Street to Oakwood and Elevation Community Land Trust for roughly $3.2 million. Another 5 acres would be leased to Metro West Housing Solutions on a 99-year agreement that starts at about $60,000 a year. Tom Kurek, who directs the P3 Collaboration Unit, told lawmakers that doing the initial planning and site work in-house helped cut the state’s upfront costs and attract private investment, stretching limited public dollars further than a more traditional approach.
Lawmakers and neighbors react
Members of the Capital Development Committee advanced the plan on a mostly bipartisan vote, though the details were not universally loved, according to BusinessDen. Some lawmakers questioned specific program elements. Sen. Byron Pelton, for one, zeroed in on the idea of artist space in the community building and said, “I’m just having a hard time with that aspect of this project,” before casting his dissent, the outlet reported.
Next steps and why it matters
With committee approval in hand, the development team now moves into the meat-and-potatoes work of lining up financing and refining the design ahead of the planned 2027 construction start. Project leaders say the mixed-income layout is designed to let residents move from renting to owning without leaving the neighborhood, according to Mile High CRE. The state’s P3 Collaboration Unit, created in 2022, has been trying to squeeze more housing out of underused public land while stretching scarce public money, ColoradoBiz reports.
On the local side, zoning changes and other recent measures have already opened the door for denser projects in Lakewood, raising the stakes for how quickly this one gets off the ground, according to Colorado Politics. For a city wrestling with housing costs and childcare shortages, supporters say the clock is now ticking to turn those 11 acres into something that actually feels like a community.
