Demolition removes troubled shopping center ahead of schedule

August 2023 -- For more than a decade, the Holiday Shopping Center at the corner of West 10^th Avenue and Sheridan Boulevard no longer functioned as a viable place for businesses or for customers. The previous out-of-state owner allowed the buildings to deteriorate into unsafe conditions, leaving the center largely vacant. There had been two fires at the location, and worse of all, it mainly served as a place for criminal activity.

 

“The things that were happening there were not good for the neighborhood,” said Maddie Nichols, a longtime resident of the Two Creeks neighborhood where the shopping center is located. “It is an entrance to the city, and it didn’t say anything good for the city.”

 

The criminal activity was a constant stress for residents in the neighborhood, which is one of the oldest and most historic in Lakewood. It’s difficult to overcome the impressions left by vacant, dilapidated buildings, she said.

 

Despite numerous efforts over the years by Lakewood’s Economic Development Division to convince the former owner to clean up and refurbish the center, nothing changed. When the owner finally sold to local developer Trailbreak Partners, it opened an opportunity to try something new.

 

Lakewood City Council backed, for the first time, the creation of a pilot program through the Economic Development Fund to deal with vacant and derelict commercial properties. In April, council approved using the fund, which comes from the lodging tax paid by those staying in Lakewood hotels, to provide money to Trailbreak to tear down the shopping center now. Trailbreak will then repay the Economic Development Fund.

 

This pilot program helps speed up demolitions that might otherwise take years because developers usually must wait for building permits and securing construction financing before demolition of existing buildings occurs. The economic fund minimizes the time buildings stand vacant, and it creates a revolving loan program to address other vacant properties.

 

“Lakewood City Council supported this approach because the council members understood the Two Creeks neighbors, indeed the whole community, gain a better quality of life when a nuisance building isn’t attracting crime,” said Economic Development Director Robert Smith.

 

The city loaned Trailbreak just over $675,000 to demolish the shopping center. Repayment will occur when Trailbreak receives its funding or permits for its project at 995 Sheridan Blvd., but repayment will occur no later than Sept. 30, 2026. As the loan is secured by a lien against the property, Smith said the city is protected against any unforeseen circumstances such as the developer running into trouble on the project or other issues.

 

Demolition of the shopping center started on July 25 during an event that Nichols saw as a “celebration” that included Doug Elenowitz with Trailbreak Partners; Mayor Adam Paul; Ward 2 City Council member Sharon Vincent; Kathi Hasfjord with the Two Creeks Neighborhood Organization; and Scott Watkins with TOD Properties, which is a partner with Trailbreak on redeveloping the site; and several city officials.

 

Trailbreak plans to build a 361-unit apartment building that will breathe new life into the community. The seven-story building will include one level of underground parking, a pool, a full-sized fitness center and multiple public amenity spaces for residents. It will be just south of the Regional Transportation District’s Sheridan Station on the W Line and provide what’s known as transit-oriented development because it is housing within walking distance of light rail. These transit-related projects have been a focus of Trailbreak, which has also built townhomes in the Two Creeks neighborhood near the W Line.

 

“This demolition really creates progress for the community by removing a long-standing negative impact on the neighborhood,” Mayor Paul said of the demolition. “I’m thrilled to see this innovative economic development pilot program for addressing vacant buildings in the city get underway.”

 

For Nichols, she sees it as the culmination of a cooperative effort among the city, the developer and the neighborhood. She said Trailbreak came to Two Creek’s monthly meetings to explain what was happening and how the company purchased the property. When that kind of communication and cooperation doesn’t happen, residents can become concerned when they see building occurring in their neighborhood without knowing what is happening.

 

“To me, communication is so important,” she said. Nichols said this project was successful for one reason. “It was a community effort."