Case Study: Pepsi Center Brownfields Project

DGS helped develop, implement and secure approval for the environmental remediation work that preceded the construction of the Pepsi Center Arena in Denver.  Working with a diverse group of builders, developers, contractors and environmental specialists, our attorneys helped to develop the Voluntary Clean-Up Plan that was approved the by the State of Colorado.  The plan was successfully implemented in conjunction with the design and construction of the Pepsi Center, and remains one of the most visible examples of the Brownfields development program across the State of Colorado and nationwide.

The Real Estate Group has taken lead roles in connection with the development of the Pepsi Center and the adjoining Six Flags Elitch Gardens which are both major landmarks in downtown Denver.  Both projects are brownfields projects in which the Real Estate Group, in conjunction with environmental lawyers from the Energy and Natural Resources Department took the lead role in developing environmental solutions for the projects.  Both projects included the design and negotiation of voluntary clean up plans with the Colorado Department of Public Health and Environment, allocation of responsibilities for and negotiation of long-term agreements with respect to environmental costs incurred and potential liabilities associated with environmental conditions on the properties, and, in one case, negotiation of a substantial settlement with one of the site contaminators.  In the Elitch Gardens project, we prepared and negotiated the agreements for the acquisition of the site from the seller, the limited partnership agreement for the ownership entity with financial partners and the design-build, cost-plus, guaranteed maximum price construction contract for the project.  In conjunction with lawyers from the Corporate Group, the Real Estate Group also prepared the private placement memorandum and disclosure documents for the limited partner investors in the project.  In the case of the Pepsi Center, the Real Estate Group prepared and negotiated the sale agreement for the site and handled the closing of the sale of the property.