Milk Tea People Chosen for $640K Investment in Plan to Revive Downtown Denver

The City of Denver is banking on Milk Tea People to help revitalize downtown, proposing to invest $640,000 in expanding and relocating the tea bar.

This is one of ten projects picked to receive a total of over $100 million in an effort to attract people back to the city center. The lineup ranges from renovating parks to converting office spaces into housing. The investments were unanimously approved by the Downtown Development Authority Board on July 30; any project that costs over $500,000 needs to be cleared by the Denver City Council.

Kevin Ung, co-owner of Milk Tea People, says his business wants to use the money to move from its current Market Station location, at 1641 Market Street, into a larger space along 16th Street. He hopes the new space "will bring our community together," he says.

"We’ve done well at our current location, but have outgrown it and want to provide a better experience for our guests," Ung adds. "We will use the funds to provide more seating for our guests, new technologies to help with managing our workflow, and opportunities to recruit and supply new jobs for the community."

Milk Tea People launched in July 2021 and quickly developed a positive reputation for its minimalist design, carefully crafted recipes and dedication to excellence. The shop opts for high-quality organic ingredients in everything from its matcha lattes to specialty Wafchis, never using preservatives or artificial flavorings. In recognition of its work, the business was named Best Tea Shop in Westword's 2025 Best of Denver.

Ung, who was born in Denver, says Milk Tea People deliberately sought a DDA loan instead of a grant. "Our belief in this project and this city is profound. The terms of this agreement are a reflection of that," Ung says. "We see these public funds as a true partnership, and we will honor that commitment by paying it back with interest, because our responsibility to its people is not an afterthought, it's the core of our business."

The business is still in the process of leasing its new location, with plans to open early next year, Ung says. He does not anticipate a gap in service while moving Milk Tea People between the shops.
Voters approved the expansion of the Downtown Development Authority in November 2024, clearing the way for the DDA to invest hundreds of millions of dollars in the Central Business District without raising taxes or impacting the city budget.

Under state law, DDAs can collect some of the incremental property and sales taxes collected in a certain area and reinvest those funds in economic development activities within that area. Denver's DDA has existed since 2008, when it was introduced to cover the renovation of Union Station into a multi-modal transportation facility, but it previously only covered the region around the terminal.

With the 2024 expansion, $570 million was "unlocked" to be invested in downtown projects, according to the mayor's office.

"We are especially keen to be investing in local Denver businesses that generate greater economic impact for our residents," says Jordan Fuja, a spokesperson for Mayor Mike Johnston. "[Milk Tea People's] relocation and expansion will create more than twenty new jobs, bring an estimated economic impact of $7.5 million over the next five years, and drive more foot traffic to 16th Street."

City officials are pushing to revitalize downtown Denver after the COVID-19 pandemic, rising homelessness rates, burdensome construction projects and high-profile crime like the 16th Street stabbing spree hurt the area's reputation, keeping people away from the core city.

Applications for the new funding opened in March. The first investments were approved in April, contributing to the downtown safety plan that increased foot patrols and improved public safety, according to the mayor's office.

"Downtown Denver is the heartbeat of our city and the core of our economic growth, and supporting its revitalization with funding from the DDA is key to our success as a city," Mayor Johnston said in a July 30 statement about the latest awards. "These projects that the DDA approved today are exactly where we should be focusing. ...[They] will transform our city center into not just a central business district, but a central neighborhood district for everyone to come and enjoy."

Here are the other projects chosen to receive the latest round of city investments:

• $30 million to activate Civic Center Park via new infrastructure, lighting, garden walkways and tree canopy
• $23 million to purchase two parking lots near the Denver Pavilions block for redevelopment and affordable parking
• $17 million to help finance an office-to-residential conversion of the historic Symes Building
• $14.5 million to help finance an office-to-residential conversion of the historic University Building
• $7 million to renovate the McNichols Civic Center Building, creating outdoor garden dining spaces, a full-service kitchen and an arts marketplace
• $5 million to activate Skyline Park, improving accessibility, lighting, safety features, the performance stage and the concessions building
• $2.7 million to secure new downtown retail space for Green Spaces Market
• $750,000 to expand Sundae Artisan Ice Cream on Glenarm Place
• $400,000 to renovate space for the Denver Immersive Repertory Theater

More than 100 projects have submitted applications seeking funding. The DDA plans to distribute a total of up to $570 million.