Developers report progress on Broomfield Town Square; HUD financing and bond sale remain hurdles

Tim Fratagel, a development executive for the Broomfield Town Square project, briefed council on progress and barriers for the mixed‑use redevelopment centered on the existing Safeway building and adjacent sites. Fratagel said engineering and architecture work continues and recent earthwork near the existing pond was investigative—piezometric and groundwater testing for the lake design—not the start of vertical construction.

Fratagel described Phase 1 components: a 318‑unit multifamily building, ground‑floor retail totaling about 35,000 square feet in the Safeway/Market Hall footprint, and a separate 161‑unit building near existing tennis courts; each vertical building will be financed and capitalized independently. "We've applied to HUD, gone through a HUD interview process, [and] been invited to submit both of those projects for HUD financing," Fratagel said. He added that lenders are active but private equity remains harder to secure.

Council members pressed on schedule and permitting. Councilmember Marsh Holshan asked about a probable groundbreaking date; Fratagel replied the team is targeting around August–September next year. Councilmember Lim asked whether the project team has submitted permit documents; Fratagel said the team has not yet submitted a permit set and is finishing construction documents first. The developer noted a Corps of Engineers 404 permit is in process for floodway‑related matters and emphasized the team wants a permit‑ready set before issuing bonds.

Financing remains the principal uncertainty. Fratagel said bond yields are higher than several years ago, which reduces bond proceeds for district infrastructure; staff and developers will do value‑engineering and explore alternative funding if necessary. "If bond yields continue to rise, you will have a growing shortfall in the budget to complete district infrastructure," he said, outlining options including tabling a sale, trimming nonessential features, or seeking alternative grants.

On tenanting, Fratagel reported promising activity: a prospective anchor tenant for about 18,000 square feet of Market Hall office space and lender interest for the Market Hall, plus the developer City Street Investors likely taking multiple space commitments. He also said a beer garden concept of roughly 5,000 square feet (indoor plus outdoor) is highly likely. The previously approved 12 townhomes will likely be developed later by a third‑party builder partner to avoid crane and staging conflicts with larger vertical construction.

Developers requested ongoing coordination with city staff on permitting and said they saw no city staff delays in the process. There was no formal council action on the update; staff and the developer said they will return with permitting submittals, bond sale timing, and capital closing details as those items mature.