Arvada City Council Approves Controversial Allendale School Redevelopment, Designated Drinking Zone

In a marathon meeting that stretched past 10 p.m., the Arvada City Council made two significant decisions Monday night that will reshape parts of the city: approving a 57-home development at the former Allendale Elementary School site and greenlighting expanded designated drinking areas in Olde Town.

Allendale Elementary: From Schoolyard to Subdivision

In the evening's most contentious decision, council voted 5-2 to rezone the 9.66-acre former Allendale Elementary School property from RN-7.5 (Residential Neighborhood) to R-6 (Residential 6), clearing the way for Denver-based Cardel Homes to build 57 single-family residences at 5900 Oak Street.

The decision came despite near-unanimous opposition from neighboring residents and a denial recommendation from the Planning Commission in August. Mike Griffith, Chair of the Planning Commission and At-Large City Council Candidate, cited multiple concerns in recommending denial. He questioned whether the lot sizes were compatible with the surrounding neighborhood and raised issues with the traffic study's validity, noting it was conducted after the school had already closed. Griffith also expressed concerns about the affordability and diversity of the proposed homes, arguing that taxpayers deserved greater returns from the property sale than what Cardel was offering.

"This is about money," said Tyler Richie, who lives on 59th Place near the proposed development. "I'd ask Cardel to figure out how to build single-family homes that fit in the R-7.5. You guys do it at Deer Creek. You guys do it down south."

A School Lost, A Neighborhood Changed

Allendale Elementary closed in 2019 as part of Jefferson County Schools' response to declining enrollment and budget pressures. The district has been maintaining the property at a cost of approximately $150,000 annually, according to testimony at the meeting.

After offering the site to the City of Arvada for potential public use—an offer the city declined due to lack of funding and identified need—Jeffco Schools initiated a Request for Qualifications and Request for Proposals process to sell the property. Cardel Homes was selected from three finalists, all of whom proposed single-family development.

Under the contract terms disclosed at the meeting, Cardel will pay the school district $62,500 per approved lot, generating approximately $3.5 million that will be reinvested into the district.

"The school district is spending about $150,000 per year to maintain this school site," said Jeff Keeley, a development consultant for the project. "So there's a need for them to sell the site."

However, several residents who opposed the sale noted the long-term implications. With the cost of building a new school estimated at upwards of $40 million and existing schools already struggling to accommodate overflow from recent closures, critics argued the district was trading short-term financial relief for future capacity problems.

The Density Debate

The crux of opposition centered on the proposed density. Under the existing RN-7.5 zoning, the site could accommodate an estimated 40 homes on 7,500-square-foot lots. The R-6 zoning allows for smaller 4,000-square-foot lots, enabling 57 homes.

Cardel representatives argued that the smaller lots actually create better neighborhood compatibility. "If we go to the RN-7.5, we will have to build a bigger home with a price point a million plus, which we believe is not very compatible with the surrounding product," said Brian Conway, representing Cardel Homes. "Under the R-6, it is very similar square footage and very similar pricing, which is very compatible with our neighbors."

The developer presented data showing proposed homes would range from 2,000 to 2,400 square feet and sell for approximately $700,000, compared to the surrounding neighborhood average of 1,700 square feet. Under RN-7.5 zoning, market conditions would require homes of 3,200+ square feet to be financially viable.

Traffic, Solar Panels, and Open Space

Residents raised numerous concerns during the three-hour public hearing:

Traffic: Multiple speakers questioned a traffic study conducted on a single day in November 2024. Diane Daugherty, who lives on Oak Street, warned that "daily backups due to increased volume of vehicles...would be atrocious and definitely create safety issues for pedestrians, children, animals, and bicyclists."

Traffic engineer Cassie Slade defended the methodology, noting the study was conducted while schools were in session and that Oak Street currently handles about 900 trips per day with capacity for 1,500.

Solar Impact: Neighbors on the northern boundary expressed concern about new two-story homes shading their solar panels. The developer presented a shade study showing minimal impact except on the winter solstice, though some council members found the analysis incomplete.

Trail Access: Several residents noted that the current site provides pedestrian access to Marge Roberts Park to the east. Council Member Rupert made preserving this connection a condition of approval, which the developer accepted.

Notably, the R-6 zoning requires 20% open space (about 1 acre), which would be publicly accessible. The RN-7.5 zoning has no such requirement.

The Vote

The comprehensive plan amendment from Public/Quasi-Public to Suburban Residential passed unanimously, 7-0. Council members acknowledged the site could no longer serve as a school and that residential use was the least impactful option.

The rezoning vote was closer: 5-2, with Mayor Pro Tem Moorman and Council Member Ambrose dissenting.

"I do not think the lot size reflects the immediate neighborhood," Ambrose explained, citing Criteria 5 of the rezoning requirements. "A more appropriate rezoning would be the duplexes, which does not look like 4,000-square-foot lots but matches the character of the neighborhood."

Council Member Marriott, who represents the district, framed the decision as finding middle ground: "If this neighborhood was the edge of town and this was development going out into green fields, I think it would be quite easy to designate how it should be developed. Neither of those are really the case here."

Mayor Simpson emphasized that while zoning was approved, the detailed site plan still requires administrative review and could be "called up" for public hearing if concerns arise.

"We will be watching this development closely to ensure that it doesn't have negative impacts on the neighborhood," Simpson said.

Housing Crisis Context

Several speakers supported the project from an affordability perspective. Vanessa Kendrick, a local realtor and former Arvada Chamber of Commerce chair, noted that at $650,000-$700,000, the homes would serve buyers earning $140,000-$160,000 annually—a critical income range for local workers.

"Without rezoning, fewer homes would be built at higher starting prices, and that would only widen our existing affordability gap," Kendrick testified.

The project is estimated to generate approximately $255,000 annually in property tax revenue for the city, according to Cardel Homes’ presentation.

Olde Town Drinking Zone Expands

In a far less contentious decision, council unanimously approved (7-0) administrative rules governing designated drinking areas in Olde Town Arvada.

The resolution allows patrons to purchase alcoholic beverages from restaurants and bars with state takeout licenses and consume them while walking in designated areas—specifically, the closed portions of Old Wadsworth and Grandview Streets near Olde Town Square.

Late Notice Frustrates Engaged Resident

Kelly Urgal, a 25-year Olde Town resident who describes herself as "actively engaged," revealed she only learned of the drinking zone proposal one week before the council vote.

"I have been an actively engaged resident of Olde Town for nearly 25 years. But just one week ago, I became aware of the proposal," Urgal told council. "I reached out to Council Member Marriott and thank you for engaging with me in electronic communication about this concern."

Urgal expressed concerns about "14 hours of unmonitored walking in the streets of Olde Town Arvada seven days a week drinking" without clear security plans or demonstrated community benefit.

"I am not understanding why we need to have 14 hours of unmonitored walking in the streets of Olde Town Arvada 7 days a week drinking. I also am not seeing any plans for security, which is very different from our fantastically wonderful festivals that we have," she said.

Urgal specifically questioned the lack of neighborhood voice in the decision-making process: "I am curious where the process was to include neighborhood voice and co-creation as there has been with other projects in Olde Town. And I am imploring you, city council, you councilman, council member Marriott as the link to all of this and the business improvement district board to pause this and engage those of us who are residents in this wonderful place of Olde Town Arvada in co-creating a better plan."

How It Works

• Businesses within the entertainment district can sell takeout beverages

• Each drink receives a QR code sticker linking to rules and a map of permitted areas

• Drinks must be consumed only within designated boundaries, marked by signage

• The program operates seven days a week during business hours

Council Member Marriott, who serves as liaison to the Olde Town Business Improvement District, noted the concept was successfully piloted during COVID-19 restrictions.

"We had a very good test of this for several years over during COVID times," Marriott said. "I think it was, at the very least, extremely compelling evidence that this is not a problem and an enhancement for some people who would like to come to Olde Town Arvada."

Business Support vs. Resident Concerns

Several business owners spoke in favor. Scott Spears, who owns two restaurants and three retail stores in Olde Town, argued the program creates equity: "Our businesses can sell to-go drinks legally, but a lot of the public are just walking around being illegal. So this will help most of the public become legal."

Stephanie Paul, another supporter, emphasized economic benefits: "By creating the designated drinking zone where visitors can responsibly, keyword responsibly, enjoy beverages while exploring Olde Town, this initiative would enhance Olde Town's already vibrant atmosphere and encourage people to stay longer and visit more businesses."

City staff clarified that the rules fall under the City Manager's purview, allowing quick amendments if problems arise. Police reported no significant issues with open containers during the COVID-era test period.

Council Member Davis, who frequents Olde Town, observed: "People have been very respectful of the drinking areas...I've seen some to-go items come from folks that may be outside of our designated drinking area, but people are very respectful and they wait until they get to the designated drinking areas."

The unanimous approval suggested council viewed this as a lower-stakes decision that could be easily modified if problems emerge, unlike the permanent zoning change at Allendale.

Other Business

Before the main hearings, council:

• Received a budget update on the Arvada Housing Authority's voucher program, which faces federal funding uncertainty through December

• Honored Joe Hengstler, executive director of the Olde Town Business Improvement District, who recently passed away from cancer

• Proclaimed October as National Manufacturing Month, National Hispanic Heritage Month, and Disability Awareness Month

• Recognized Archwell Health for supporting the city's Snow Buddies program

The housing authority currently maintains 562 vouchers with a waiting list exceeding 3,000 people. Federal funding is secured through November 2025, but the 2026 budget remains uncertain due to the federal government shutdown.

The meeting adjourned shortly after 10 p.m., with community members and council members visibly exhausted from the evening.

The Allendale development will now proceed to detailed site plan review with city staff. Shovels are not expected to hit the ground until multiple additional approval steps are completed, likely taking one to three years.