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Pioneers and Settlers in Lo-Do Denver: Private Risk and Public Benefits in Urban Redevelopment

Department of Economics, Colorado State University, Fort Collins, Colorado 80523-1771, USA, sweiler{at}vines.colostate.edu

Older industrial districts, often rich with history and architecture, are paradoxically central yet decaying features of the modern US urban landscape. However, several such areas are experiencing major renaissances through individual sparks of private business investment. Lower Downtown (LoDo) Denver is a well-known example of this phenomenon; less recognised is the influential role of craft breweries in its rebirth. This paper first explores a game-theoretical framework for understanding the private strategies in such pioneer enterprises, along with the potential market failures and externalities involved. A case study of the LoDo experience is then presented to highlight both the theoretical and policy perspectives of the research.

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