Disgruntled former workers repeated their claims of wage theft by Focus Points during the August 4 council meeting, but councilmembers' biggest concern about the nonprofit's request was the vagueness of its plan to build affordable housing units. According to Focus Points executive director Jules Kelty, the nonprofit's expansion plan was created in response to feedback from residents of the neighborhood.
The resource center's location is zoned for a single-unit detached dwelling, which would allow Focus Points to rent to one or two people. Focus Points was hoping to get the property rezoned as a campus that "allows for a diversity of residential, civic, public, institutional" uses, according to the Denver Department of Community Planning and Development (CPD).
Council had received thirty letters of support for Focus Points's rezoning bid from groups like the National Western Center, Our Lady of Grace Catholic Church and the National Veterans Chambers of Commerce. At the meeting, a half-dozen speakers offered support for the nonprofit, with some saying how much its programs had helped their families.
While presenting Focus Points's rezoning bid, CPD staff noted that seven wage theft investigations were ongoing, and several of the workers who have filed complaints with the Denver Auditor's Office spoke at the meeting, too. All immigrants who worked at Comal Heritage Food Incubator run by Focus Points, they've accused the nonprofit of wage theft, worker misclassification and discrimination. Before Comal closed in February, it was an award-winning eatery where immigrants worked while training to open their own businesses.
"I came with a lot of illusions about starting my own business because that was the idea they had idealized for us," Noemi Salvidar told council. "But instead, they just profited from our immigrants status to get donations."
"I came with a lot of illusions about starting my own business because that was the idea they had idealized for us," Noemi Salvidar told council. "But instead, they just profited from our immigrants status to get donations."
At the meeting, community activists also spoke in opposition of Focus Points, including Candi CdBaca, the former councilwoman for the area who's been helping former Comal employees with their labor complaints. A spokesperson for the Globeville Elyria Swansea Coalition said that Focus Points hadn't held to agreements in a neighborhood memorandum of understanding, adding that "we weren't aware of the wage theft accusations" when the nonprofit lent its support to the proposed expansion.
Councilman Darrell Watson, who now represents Globeville and Elyria Swansea, brought up the labor complaints immediately after the public hearing, giving Kelty the chance to address the allegations. "We are working with the Department of Labor and Wage [a division of the Auditor's Office], and we're complying with everything that they're asking," she said. "If there's any findings, we'll comply, but that's all I'll say on that topic right now."
Council confused by Focus Points Housing Plan
Councilmembers had plenty to say about the Focus Points affordable housing plan, though.
Council president Amanda Sandoval said the whole thing was "clear as mud, which is concerning," adding that she didn't understand why Focus Points had a waiver that would allow it to keep the resource center at 75 feet instead of 150 feet; those waivers are only given when council is changing rezoning laws.
Sandoval said she was also confused by Focus Points asking for a campus zone district, considering the designation "is in direct conflict with the Elyria Swansea neighborhood plan, the plan that Focus Points was a part of." That plan is meant to guide development in the area; according to Sandoval, it advises against campus zoning districts because they increase density.
Sandoval said she was also confused by Focus Points asking for a campus zone district, considering the designation "is in direct conflict with the Elyria Swansea neighborhood plan, the plan that Focus Points was a part of." That plan is meant to guide development in the area; according to Sandoval, it advises against campus zoning districts because they increase density.
"The use table on a campus zone district is so broad," Sandoval said. "To get a campus zone district, you can basically do anything: You can run a school, you can let people sleep there...how did you get a campus zone district from the small area plan you were supposed to take guidance from?"
After Councilwoman Amanda Sawyer asked CPD if it's true "there is no project," and the CPD spokesman agreed, Sandoval addressed Kelty: "You do not have a development plan, you're not under agreement, you're not under contract, you don't have a developer?"
"Yes, that's accurate," Kelty responded.
Councilwoman Sarah Parady then said that "nothing seems too concrete here." More questions followed about how Focus Points could make guarantees about affordable housing.
Part of the Focus Points plan calls for building affordable housing with the assistance of Low-Income Housing Tax Credits, a federal program that heavily discounts taxes for affordable housing developments. But Councilwoman Diana Romero-Campbell noted that these tax credits are "very, very competitive."
A project needs approval from a city review team before receiving LIHTC, Sawyer added, saying that she didn't see how Focus Points could promise LIHTC-supported housing without that approval.
After Councilwoman Amanda Sawyer asked CPD if it's true "there is no project," and the CPD spokesman agreed, Sandoval addressed Kelty: "You do not have a development plan, you're not under agreement, you're not under contract, you don't have a developer?"
"Yes, that's accurate," Kelty responded.
Councilwoman Sarah Parady then said that "nothing seems too concrete here." More questions followed about how Focus Points could make guarantees about affordable housing.
Part of the Focus Points plan calls for building affordable housing with the assistance of Low-Income Housing Tax Credits, a federal program that heavily discounts taxes for affordable housing developments. But Councilwoman Diana Romero-Campbell noted that these tax credits are "very, very competitive."
A project needs approval from a city review team before receiving LIHTC, Sawyer added, saying that she didn't see how Focus Points could promise LIHTC-supported housing without that approval.
Parady then questioned why the nonprofit wanted to involve a community land trust, a nonprofit formed to own land and lease it out to affordable housing developers. She also said that Focus Points wrote in its application that it had met with her, but she didn't remember meeting with them on the date listed.
Councilwoman Serene Gutierrez Gonzales then added that nonprofit wrote that it met with her before the application was turned in, but her records showed that it met with her after, which the lawmaker said was "highly inappropriate."
Watson attempted to delay the vote on the rezoning, but Sawyer and Councilwoman Jamie Torres both said they didn't think it would save the rezoning bid. Their comments led Watson to withdraw his motion to delay.
"This is not savable," Sawyer said. "If they're going to change their zoning, they need to withdraw their application and refile their application and go through the whole process again. They can't just change it on the fly."
Back to the drawing board
Denver City Council "worked masterfully as a team to assess the application, the zoning code and the testimony," CdeBaca tells Westword. "I don't think I have ever witnessed a unanimous vote to block a rezone.""I'm happy to see that the majority of the members of the council were able to see that they didn't prepare themselves," says Maria Elena Perez Reyes, one of the former Comal workers. "They couldn't even show how their good intentions for the community were going to help."
"The proposal was indeed inappropriate, and the many inconsistencies were on full display," CdeBaca adds. "I hope they also receive justice in the wage theft investigation, and I hope that the Focus Points board reassesses their role and leadership or lack thereof in our community."
Focus Points now has to wait a year before it can present another zoning request. Kelty won't say whether Focus Points plans to apply again or even whether it still has plans to expand the Family Resource Center. The nonprofit is "disappointed," she says in a statement to Westword.
“We respect the council’s decision and the process that led to it," Kelty adds. "We’ll continue providing essential programs like early childhood education, family support services, and healthy food access, and we’ll keep exploring ways to meet the evolving needs of the community we’re proud to serve.
