Mayor, Cheyenne Leads push MOU to use voter-approved 6p funds to revive Heinz and 'the Hole'

The Finance Committee recommended that the City Council approve a resolution authorizing the City of Cheyenne to enter into a memorandum of understanding with Cheyenne Leads to establish a large-project gap‑financing program using voter-approved 6p sales and use tax funds to support downtown redevelopment, specifically naming the Heinz building and the site known as "the Hole."

Mayor Patrick Collins outlined the history behind the proposal, saying the city formed a URA and a tax-increment financing program after earlier downtown blight issues and that Proposition 12 on the 6p ballot created a $3,500,000 large-project completion fund “specifically named the downtown hole.” He told the committee the challenge is deploying the funds and that he asked Cheyenne Leads to partner with the city on a program to catalyze redevelopment.

Betsy Hale, CEO of Cheyenne Leads, told the committee Cheyenne Leads would act as a partner and manager of a gap‑financing program and said the ballot language specifically referenced working with Leads and the Hole. Hale described the financing need for downtown projects and the organization’s 40‑year track record. She said initial plans envision a first project to rehabilitate the Heinz and the Hole together—because, she explained, the buildings’ configurations (e.g., elevator and fire-stair needs) make the properties interdependent—and that the development could include housing and retail. Hale estimated total investment for the two buildings would be about $31,000,000 and said the proposed project partner, Overland Properties Group, intends to seek low-income housing tax credits through the Wyoming Community Development Authority.

Committee members asked about funding sources and timing. Collins and Hale said the city’s Proposition 12 fund includes $3,500,000 plus interest currently identified for the large-project fund; Hale said Cheyenne Leads expects to contribute equity and to seek other partners, philanthropic dollars, tax increment financing and other incentives to fill financing gaps. Hale said a development timeline was uncertain but she hoped to report back with more detail by January or February next year, and she said if Cheyenne Leads becomes a tenant—offering office space on a second floor—that would reduce the proposed residential unit count from 72 to 63.

There was no public comment. Committee member Renny moved and Roy Ball seconded adoption of the resolution; the committee voted by voice to recommend the resolution for the City Council to adopt on Monday.