Denver City Council considers millions in spending for homelessness, immigrant sheltering and airport contracts

The Denver City Council will consider tens of millions worth of contracts and contract amendments impacting Denver International Airport and will consider approving almost $10 million in contracts for homelessness and immigrant spending.

While the contracts for DIA are enormous, the revenue and budget of the airport are equally large. But there’s one problem: That money is federally required to only be reinvested at the airport or for airport related services.

In 2022, the latest financial report available, the airport reported $930.2 million in revenue, which is a roughly 30% or $213 million increase over 2021. This is against an operating expense of $542.6 million, netting hundreds of millions in profit that can only be reinvested in airport related expenses. One of the largest contracts on Monday’s agenda is a $10 million addition to an existing contract for on-call telecommunication infrastructure services at the airport.

This is worth more than both homeless and immigrant service contracts on the council’s agenda Monday.

So while DIA may be a major economic driver of the Rocky Mountain region, according to airport officials, the money it makes doesn’t always find its way directly back into communities off airport owned property.

"Airport revenues can only be expended for the capital or operating costs of the airport; the local airport system; or other local facilities owned or operated by the airport owner or operator and directly and substantially related to the air transportation of passengers or property," according to the Federal Aviation Administration. 

There have been some ways around this, as the airport is paying for a recruit class of Denver Police cadets in order to help fund Mayor Mike Johnston's immigration response program with the savings from the DPD budget. Since Denver police must patrol the airport, the city’s Department of Finance reasoned it is an “airport related expense.”

Here’s a summary of other business appearing before the council on Monday night:

Contracts and Resolutions:

24-0517: A resolution amending a contract with Roth Property Maintenance, LLC to add $2,750,000 for a new total of $26,450,000 and one additional year for a new end term of April 30, 2025, for janitorial services, citywide

24-0369: A resolution approving a contract with The Salvation Army for $8 million to support the intake, services, and operations at The Tamarac Family Shelter, in Council District 4 to the end of 2024.

24-0521: A resolution amending a contract with Colorado Safe Parking Initiative to reduce the amount by $400,000 for a new total of $350,000 and reducing the time by one year to maintain two safe parking sites and remove the contract requirement of developing additional lots in council districts 4 and 10.

24-0543: A resolution approving a contract with ViVe for $1,369,504 and a contract term through December 2024 to provide case management services for newcomer families and individuals including rental/deposit assistance, onward travel, and other supportive services, citywide.

Bills:

25-0542: A bill being introduced requesting to transfer and appropriate $1,129,000 from the Gateway Impact Fee Fire Trust Fund for payment of contract obligations related to the construction of a fire station.

24-0500: A bill on final consideration approving the purchase of eight vehicles from the Airport Capital Improvement and Equipment Fund to support operations at DIA.

Public Hearings:

24-0263: A bill for an ordinance changing the zoning classification for 3096 South Roslyn Street in Hampden

24-0269: A bill for an ordinance changing the zoning classification for 6750 East Exposition Avenue in Washington Virginia Vale

24-0156: A bill for an ordinance changing the zoning classification for 700 North Mariposa Street in Lincoln Park.