The city was in the early stages of a condemnation proceeding with plans to raze the building to make way for a 4,000-seat auditorium that would be part of the $268-million expansion of the convention center. However, appraisals of the property indicate it would cost the city $11 million to $14 million to buy the building, while the city was only prepared to pay up to $9 million. Denver-based ROC Properties paid $6.5 million for it a year ago.
The auditorium may be added in a future phase of the convention center.
As reported earlier in GlobeSt.com, Denver-based Matrix Bancorp is thinking of moving its $1.3-billion bank in Las Cruces, NM to either Denver or Phoenix. Its parent company is headquartered in Denver,about two blocks from the Terracentre. If it can buy Terracentre, it bolsters the chances of moving to Denver, says Stephen Skiba, the new president and chief executive officer of Matrix Capital Bank.
Matrix would like to put a retail bank on the ground floor and then occupy at least 50% of the building. Federal regulations require banks to occupy at least half of the building they own, so it doesn't look like they're speculating on real estate, Skiba says.
''From a cost of capital, it certainly makes more sense for us to own than to rent,'' Skiba says. ''It's pretty hard to find buildings that you can occupy 50% of a building. This is good news.''
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