The Capital Development Committee voted to recommend support for the sale of the Colorado Department of Labor and Employment (CDLE) Unemployment Insurance building at 251 East 12th Avenue in Denver and asked staff to include language in the recommendation letter encouraging the department to pursue efficiencies with the proceeds.
Darcy Kennedy, deputy executive director and chief financial officer for CDLE, explained the department’s desire to sell the 251 building because much of the Unemployment Insurance (UI) workforce now operates in hybrid or remote arrangements and the building requires extensive work (asbestos remediation, freight elevator repairs and other infrastructure upgrades). She said CDLE plans to downsize to new leased space at 707 Seventeenth and co‑locate UI staff there.
Committee members asked about ownership and proceeds. CDLE and Department of Personnel and Administration staff said the U.S. Department of Labor (USDOL) holds an 81% equity stake tied to prior federal grant funding and renovations; the state’s share is about 19%. Cameron Kennedy (DPA real estate program manager) and Seth Ford (DPA legislative liaison) said the state received written confirmation of the USDOL’s 81% equity interest and that proceeds tied to federal equity would be returned to the relevant federal program areas (principally UI administration). Beau Pogue of Legislative Council explained the committee can fashion its recommendation to address the state’s 19% interest specifically.
Representative Winter asked whether the state’s 19% could be redirected to maintenance funds; staff and presenters said current rules direct that proceeds from the sale would be deposited in the State Unused Property Fund, which the committee heard is used for priorities including affordable housing, child care, behavioral health, energy projects and public‑private partnership (P3) work.
The committee voted to convene an executive session to discuss an offer on the property, then returned and approved a motion to recommend support for the sale of 251 East 12th Avenue and to include language directing staff to work with the department on encouraging operational efficiencies and to request a follow‑up briefing after sale. The motion passed 5–0.