Milk Tea People Expands in Downtown Denver with Support from Denver DDA Loan Program

Photo by Developing Denver

DENVER, CO – One of Denver’s most recognizable tea shops is preparing for a major expansion on the newly rebranded 16th Street. Milk Tea People, known for its minimalist aesthetic, precise brewing techniques, and loyal fan base, has secured financing through the Denver Downtown Development Authority (DDA) to relocate to a significantly larger space along the corridor.

The move will see the shop grow to nearly three times its current size, adding seating for more guests, a full bakery, and an expanded menu alongside their signature teas. Construction plans include a full kitchen build-out, updated service areas, and custom architectural details designed to create a calming, intentional environment.

From Sauna Conversation to Local Favorite

Co-owners Kevin Ung and Tim Gardner first met years ago at a Lifetime Fitness in Colorado Springs. “We just kind of met through the connection of the love for business,” Ung said. “And we actually spoke in the sauna, of all places.” Seven years later, the idea for Milk Tea People emerged during a trip to Houston. Ung recalled spotting a busy food court kiosk. “I told him, ‘let's just get in line and see what they're all about.’ Sure enough they were serving boba tea, and I just kind of looked at Tim and said, ‘what if this could be a thing for us?’”

Ironically, Milk Tea People has never served boba…but the encounter sparked the vision for a quality-focused tea business that opened in July 2021 during the pandemic. After an SBA-backed loan fell through, “we financed everything with credit cards and our personal savings,” Ung said. Opening downtown during a time of shutdowns was a challenge. “We signed a lease prior to COVID happening,” Ung said. “We didn’t know what to do… we’re located downtown when it’s completely shut down.”

Regardless of the situation, both owners say they were “drawn to downtown Denver.” In a moment they describe as serendipitous, they sat on a tree stump near the future Market Station site, at the time an RTD parking lot, and called a broker. The broker told them the lot would soon be redeveloped, and a lease opportunity followed. While the Market Station paseo location has been successful, it has its limits. “We have a lot of guests that call us daily that say ‘where are you?’” Gardner said. “It’s kind of hard to find…we’d like to be on the main street to let people know that we’re here.” becoming one of the reasons they decided to relocate to the main street.

Inside the DDA Loan Process

Milk Tea People’s relocation will be supported in part by a DDA loan. Gardner said the process took about a year, with no guarantees. “It was just open up applications, answer their questions, see how it goes,” he said. Part of what helped their case was the shop’s draw as a downtown destination for both locals and international visitors. “We have a lot of people flying into Denver… from China, Kuwait, Saudi Arabia,” Gardner said, noting that the business appears on international review platforms similar to Yelp. “They come in, they bring money to Milk Tea People, and then they go shopping at other shops downtown.”

Gardner stressed the loan is not a grant. “The city is going to put a lien against us…we do have a responsibility to pay them back,” he said. The loan is structured with staged draws tied to project completion, and Milk Tea People is contributing its own funds as well. “They want to make sure we have skin in the game,” Gardner said.

The owners plan to invest $1.5 million into the new space through a mix of the DDA loan and their own money. The expansion will also grow the team from 9–10 employees to as many as 30–35, with starting wages around $19–$20 per hour plus higher pay for management roles. Ung added that the goal is to create “a space where people come to connect with either friends or family… a space where people can just come and relax.”

Designing a Destination

Service will remain rooted in what they call their “gifts of love”: intentional recipes, precise preparation, and thoughtful presentation. “Each drink is a gift of love,” Gardner said. “Everything about that drink is intentional.” He described the new space as “a place that says nothing but says everything… we hope it’s a place of peace for everybody.”

While offers to franchise have come in, both owners have declined. “The minute they get involved, they say, ‘the ube, we can make that cheaper… the cream, we can make that cheaper,’” Gardner said, noting that this goes against their goal of using only the highest quality ingredients. “We really want to give a gift to each guest that comes in.”

Photo by Developing Denver

Looking Ahead & Advice

While the 16th Street project is their primary focus, expansion isn’t off the table. For other business owners considering the DDA program, their advice is straightforward: “Get your business plan together and take it down to the DDA,” Gardner said. “You’ll probably need a business plan and some type of track record… the city wants to see people succeed, but they also want to make sure you have skin in the game.”

The team is currently in the underwriting process with the Denver DDA and hopes to open the new location sometime next year.

Learn more about Milk Tea People by visiting the link here: Milk Tea People Webiste

Learn more about the Denver DDA and how to apply by visiting the link here: Denver Downtown Development Authority Website

This post is completely editorial and has no outside influence. All images and photos copyright of Developing Denver.

---

See more behind the build on Denver’s greatest construction projects

Get a deeper dive on the who, what, when and why behind the city’s greatest construction projects with our premium member content.

Interested in sponsorship? Learn more about our sponsors and how to get involved.

All project information was sourced from publicly available site plans, renderings, and permitting documents.