Demolition crews tore down the old "Shuffle Inn" Wednesday morning.
The old biker bar on Colfax Avenue and Zenobia Street has been closed for years.
The Colorado Coalition for the Homeless plans to build a 101 apartment housing complex will provide homes for homeless and low-income families.
The new development will cost $17 million and is expected to bring $34 million into the local economy.
"In the end, we think this will help to revitalize this neighborhood, help revitalize the West Colfax Business District and help provide housing," Colorado Coalition for the Homeless President John Parvensky said.
The West Colfax Business Improvement District and the West Colfax Association of Neighbors helped sponsor the project. The complex is expected to be completed early next year.
(KUSA-TV © 2010 Multimedia Holdings Corporation)