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HomeMy WebLinkAbout2013 Ordinance No. 061• • • ORDINANCE NO. w SERIES OF 2013 ~ lio. lo(&> -do 13 BY AUTHORITY COUNCIL BILL NO . 57 INTRODUCED BY COUNCIL MEMBER WOODWARD AN ORDINANCE AUTHORIZING THE SALE OF 3415 SOUTH BROADWAY IN THE CITY OF ENGLEWOOD TO THE ENGLEWOOD URBAN RENEW AL AUTHORITY (EURA). WHEREAS , in the mid-1980 's the Englewood Urban Renewal Authority (EURA) acquired the majority of the land on which this urban renewal project is proposed; and WHEREAS, in 2012 the Board of the EURA and the Englewood City Council both agreed to gauge interest in developing the property by issuing a Request for Proposals (RFP); and WHEREAS, a draft RFP was prepared and was reviewed by the EURA and Council; and WHEREAS, the EURA Board selected Medici Communities as the preferred developer; and WHEREAS, simultaneous to negotiations with Medici, the EURA Board directed staff to obtain an update to the appraisal of the property obtained in September 2012; and WHEREAS, that new appraisal was obtained and the fair market value of the City-owned property was determined to be $215,000; and WHEREAS, the City will receive $215,000 from the EURA once the closing on the sale of the remainder of the project property occurs; and WHEREAS, the design of the redevelopment project shall be substantially as presented to EURA and City Council in Medici Community's 3rd Submittal to the EURA; and WHEREAS, should construction of the redevelopment project fail to commence within the time period required by the EURA, the ownership of the property shall revert to the City and no payment shall be due from EURA to the City. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ENGLEWOOD, COLORADO, AS FOLLOWS: Section 1. The City Council of the City of Englewood, Colorado hereby authorizes the Mayor to sign a Contract to Buy and Sell Real Estate containing the conditions listed, attached hereto as Exhibit 1. Section 2 . The City Council of the City of Englewood, Colorado hereby authorizes the Mayor to sign the Quit Claim Deed for the sale of 3415 South Broadway to the Englewood Urban Renewal Authority. Introduced, read in full, amended and passed as amended on firs! reading on the 21st day of October, 2013. Published by Title as an amended Bill for an Ordinance in the City's official new s paper on the 25th tfoy of October, 2013. Pub lished as an amended Bill for an Ordinance on the C it y's otlicial website beginn in g on th e 23rd clay of October, 2013 for thirty (30) days. Read by title and pa ssed as amended on final reading on the 4tl, day of November, 2013. Publi sh ed by title as amended in the City's official newspaper as Ordinance No./z._{_, Series of 20 13 , on the 8 th day of November, 2013. Publi shed by title as amended on the C it y's officia l website b eginnin g on the 6 th clay of November, 2013 for thirty (30) clays. I, Loucrishia A. Ellis, City Clerk of the C ity of Englewood, Colorado, hereby certify that the above and foregoing is a true copy q,i t9e Ordinance passed as amended on final reading and published by title as Ordinance Noftt..L , Series of 2013. ~ucris :a A Ellis ~ • • • • • • CONTRACT TO BUY AND SELL REAL ESTATE This Contract is made on the ____ day of ________ ~ 2013, between THE CITY OF ENGLEWOOD, a Municipal Corporation, 1000 Englewood Parkway, Englewood, Colorado 80110 County of Arapahoe [Seller], and ENGLEWOOD URBAN RENEW AL AUTHORITY (EURA), 1000 Englewood Parkway, Englewood, CO. 80110 [Seller] agrees to buy, and the undersigned Seller, agrees to sell, on the terms and conditions set forth in this Contract, the following described real estate in the County of Arapahoe, Colorado, to wit: Lots 44-45 BLK 1, Enwood Addition City of Englewood, Colorado As shown on the attached Exhibit A This property shall be purchased together with all interest of seller, all improvements and all attached fixtures thereon. The purchase price shall be Two Hundred and Fifteen Thousand DOLLARS ($215,000) payable in U. S. Dollars by Buyer to Seller. This. Contract shall not be assignable by Buyer without Seller's prior written consent. Except as so restricted, this Contract shall inure to the benefit of and be binding upon the heirs , personal representatives, successors and assigns of the parties. Subject to tender or payment by Buyer with the Seller shall execute and deliver a good and sufficient Quit Claim Deed to Buyer, conveying the Property subject to the following conditions: 1. The Property is sold "as is, where is". All warranties expressed or implied including fitness for purpose of use are hereby waived by the Buyer. 2. The City (Seller) will not provide title insurance. 3. Adequate parking shall be provided for businesses fronting Broadway based upon the 2013 Parking Study. EURA will negotiate an equitable agreement to pay ongoing maintenance of shared parking; however, existing businesses fronted on the West side of the 3400 block of Broadway shall be exempt from any payments for 12 months after the completion o f construction. 4 . The design of the redevelopment project shall be substantially as presented to EURA and City Council in Medici Community's 3rci Submittal to the EURA. 5. Payment to the City for the property shall be made within 10 working days of the date of the real estate closing between EURA and Medici Communities, LLC . 6. Should construction of the redevelopment project fail to commence within the time period required by the EURA, the ownership of the property shall revert to the City and no payment shall be due from EURA to the City . 7 . The EURA agrees that the property shall not be sold to or developed b y another developer other than Medici Communities, either separately or as part of EURA' s entire ownership , unless approved by both the EURA and the City. E X H I B I T 1 xcept as otherwise pro vided in this Contract, the property and inclusions shall be delivered in the condition existing as of the date of this Contract, ordinary wear and tear_ expected. Closing sha ll take place at CityCent:er Englewood or at ano ther place and date mutually agreed upon by th e parties. ENT1P.,J3 AGREEMENT. This Contract constitutes the enti r e contract between the parties relating to the s ubject her eof, and any prior agreements pertaining thereto, whether oral or written, hav e been merged and integrated into thi s Contract. NOTICE OF ACCEPTANCE: COUNTERPARTS. If accepted, this document shall become a contract b etw een Seller and Buyer. A copy of this document may be executed by each party, separately, and when each party has executed a copy thereof, such copie s taken together shall be deemed to be a full and complete contra ct between the parties. ENGLEWOOD URBAN RENEW AL A UTHOIUTY Buyers Address: 1000 Englewood Parkway Englewood, CO 0 110 ATTEST: Buyers Address: 1000 Englewood Parkway Englewood, CO 80110 Date of Buyer's signatme __ !_'0-+/_·_3u_,,--+/2_z_t ~_S __ r, ATTEST: -2- • • • • • • CITY OF ENGLEWOOD, COLORADO Seller: Rand y P. Penn, Mayor Sellers Address: 1000 Englewood Parkway Englewood, CO 80110 Date of Seller's signature _______ _ ATTEST: Loucrishia A. Ellis, City Clerk -3- -2; '· ... . ~~ .... ·: 10 .. : I . t : I . I I I I I I ' . c(( [. ~ ~. ~ ~-: 2~~ {. ' ii:if.'? I ~ I ·S SUB. : I I I l I . · A ·f ·G · . , ·= ~:.:-~ : .,. ' :-:--------~ ' . . Ex nibr :----T~·----~·-····~••==-•--h·,, ":,; .. :• I ?_.~·\ ~ .·.·.,: ··. . . r:S;·. :m· ~~, ©: ·ltt: ~:. ~ l I • ! • • .. • • • COUNCIL COMMUNICATION Date: Agenda Item: Subject: October 21, 2013 11 a ii Ordinance Approving the Sale of City- Owned Property Located at 3415 S. Broadway to the Englewood Urban Renewal Authority Initiated By: Staff Source: Community Development Alan White, Community Development Director COUNCIL GOAL AND PREVIOUS COUNCIL ACTION Medici Communities presented the proposed project to City Council and EURA members at the September 3, 2013 and September 9, 2013 study sessions. Sale of the City-owned portion of the redevelopment property was discussed on September 23, 2013 and October 14, 2014 as an executive session topic. RECOMMENDED ACTION Staff recommends approval of an ordinance, on first reading, approving the sale of City-owned property located at 3415 S. Broadway to the Englewood Urban Renewal Authority (EURA). The sale is contingent upon two conditions as requested by Council: 1. Adequate parking shall be provided for businesses fronting S. Broadway based on the 2013 parking study. 2. The design of the redevelopment project shall be substantially as presented to EURA and City Council in Medici Community's 3 rd Submittal in the EURA 3. Should construction of the redevelopment project fail to commence within the time period required by the EURA, the ownership of the property shall revert to the City unless the City and EURA agree otherwise. BACKGROUND, ANALYSIS, AND ALTERNATIVES IDENTIFIED In the mid-1980's the Englewood Urban Renewal Authority (EURA) acquired the majority of the land on which this urban renewal project is proposed. Also during this time, the City acquired a SO-foot wide parcel fronting Broadway as a result of a fire at the structure previously occupying that parcel. Together the two parcels comprise 1.8 acres. The parcels have remained vacant since they were acquired and have been used for parking . Although two previous attempts to redevelop the property had not been successful, in 2012 the Board of the EURA and the City Council both agreed to gauge interest in developing the property by issuing a • Request for Proposals (RFP). A draft RFP was prepared and was reviewed first by EURA, then Council. The final draft was reviewed by EURA in October 2012. The EURA Board decided that the RFP should be issued early in 2013. The RFP was reviewed by Council one last time on February 25, 2013. The RFP soliciting development proposals was issued on March 6, 2013. The RFP was mailed to 42 local (Front Range) real estate development companies in addition to a handful who called in response to the sign posted on the property. The submittal deadline was April 12 th . At their April 10th meeting the EURA Board scheduled a special meeting on April 24th to review the development proposals received and establish the next steps in the selection process . The Board also requested the participation of two Council members in this process. The selection of two members from Council occurred on April 22 nd . Three proposals were received by the deadline. EURA reviewed the proposals on April 24th and eliminated one proposal from further consideration. The Board directed staff to request additional information from the remaining developers, with a deadline of May 3"1 to reply. On May 8 th the additional information was reviewed and the Board set July 10th as the date for presentations by the two developers. After the presentations, the Board had additional questions and concerns and requested information for a second round of presentations. The Board met on .August th to review the additional information and conducted second interviews/presentations on August 14th • Due to the late hour, the Board postponed selecting a preferred developer until a special meeting held on August 21 s t • At that meeting, the Board selected Medici Communities as the preferred developer. Simultaneous to negotiations with Medici, the EURA Board directed staff to obtain an update to the appraisal of the property obtained in September 2012. That new appraisal was obtained and in the opinion • of the appraiser, the fair market value of the City-owned property was determined to be $215,000. FINANCIAL IMPACT The City will receive $215,000 from the EURA once the closing on the sale of the remainder of the project property occurs. The project has an estimated value of $24.8 million. The City will receive one-time revenues including use tax, permit fees and parks fee in lieu of dedication. It is anticipated that Medici will request redevelopment assistance under the City's incentive policy which will affect the net one-time revenues to the City. The project includes 23,500 square feet of commercial space and sales tax revenue from these uses is anticipated. Property tax revenue will be received by the City and other taxing entities once construction is complete and the property is included on the county tax roll . LIST OF ATTACHMENTS Proposed Bill for an Ordinance • • • • COUNCIL COMMUNICATION Date: Agenda Item: Subject: November 4, 2013 11 b i Ordinance Approving the Sale of City- Owned Property Located at 3415 S. Broadway to the Englewood Urban Renewal Authority Initiated By: Staff Source: Community Development Alan White, Community Development Director COUNCIL GOAL AND PREVIOUS COUNCIL ACTION Medici Communities presented the proposed project to City Council and EURA members at the September 3, 2013 and September 9, 2013 study sessions. Sale of the City-owned portion of the redevelopment property was discussed on September 23, 2013 and October 14, 2014 as an executive session topic. RECOMMENDED ACTION Staff recommends approval, on second reading, of Council Bill No. 57, as amended, an ordinance approving the sale of City-owned property located at 3415 S. Broadway to the Englewood Urban Renewal Authority (EURA). The sale is contingent upon three conditions as requested by Council: 1. Adequate parking shall be provided for businesses fronting S. Broadway based on the 2013 parking study. 2. The design of the redevelopment project shall be substantially as presented to EURA and City Council in Medici Community's 3rd Submittal to the EURA. 3. Should construction of the redevelopment project fail to commence within the time period required by the EURA, the ownership of the property shall revert to the City unless the City and EURA agree otherwise. BACKGROUND, ANALYSIS, AND ALTERNATIVES IDENTIFIED In the mid-1980's the Englewood Urban Renewal Authority (EURA) acquired the majority of the land on which this urban renewal project is proposed. Also during this time, the City acquired a SO-foot wide parcel fronting Broadway as a result of a fire at the structure previously occupying that parcel. Together the two parcels comprise 1.8 acres. The parcels have remained vacant since they were acquired and have been used for parking . In 1989 th e EURA entered into a lease agreement with th e City to lease the prop e rty for interim parking. • Thi s was app roved by Ordinance N o. 41, series of 1988. After the initial term, th e le ase was renewed und er Ordinance 19, Se ri es of 1993 for a thre e-y ea r t erm with the abi lity to renew for successive one year te rm s. Th e l ease was n o t r e newe d in 1996 nor in any subseq u ent yea rs. Both leases contain ed provisions th at the lease was for pa rkin g as an int e rim us e an d th e lease was ca nce ll ab le if a r edeve lop m e nt proposal acceptab le to th e Ci ty and EURA was submitted b y a r e d eve lope r. Although two pr ev io us atte m pts to red eve l o p th e prope rty had n o t b ee n su ccessful , i n 20 1 2 th e Roard of the EURA and th e City Co un ci l both ag reed t o ga uge i nteres t in devel op ing th e p ro p e rt y by issuing a Request fo r Proposa ls (RFP). A draft RFP was pr e pared and was r eviewed first by EURA, then Co un c il. The f in al d raft was r ev iewe d by EURA in Octo b er 2012. Th e EURA Board d ec id ed th at th e RFP shou l d be issued ea rl y in 2013. Th e RFP was rev i ewed by Counc il one last time on February 25, 2013. T he RFP so li citin g development proposa ls was issu ed o n Marc h 6, 20 13. Th e RFP was m ail ed to 42 loca l (F ron t Ra n ge) r ea l estate deve lop ment compan i es in addition to a handfu l w h o ca lled in respons e to th e sign posted on th e prope rt y. Th e submittal d ea dlin e was Ap ril 12 th . At th eir Apri l 10th m eet in g th e EURA Boa r d sc h ed ul ed a special m ee tin g o n Ap1·il 24 th to rev i ew the d eve lo pm ent prop osa ls r ece ived and estab li sh the n ex t st eps in t h e selec tion process. Th e Boa r d also request ed th e pa rti c ipatio n of t wo Counci l m emb ers in thi s process. Th e selection of tw o m emb e rs from Co un c il occ urr ed o n Apri l 22 nd . Thr ee proposals were r ece iv ed by th e deadline . EURA r ev iewe d the proposa ls on April 24 th and elimin ated o ne proposal fr om furth e r co nsid era tion. The Board dir ec ted sta ff to r eq uest add iti o n al inform ation from th e r em ainin g d eve lope rs, with a dead lin e of M ay 3'r1 t o r ep ly. On May 8 th the additio nal in fo rmati o n was rev iewed an d the Boa rd set Jul y 10th as the date for • prese ntati o ns by th e two dev elo pers. After the pr ese ntations, the Boa rd had additional questions and co nce rns and requested information fo r a second ro und of p r esenta ti ons. Th e Board met on August 7th to 1·ev i ew th e add iti o nal in fo rm ation and conducted second interviews/presentations on August 14th . Du e t o the lat e h o ur, th e Board postponed selecting a prefe rr ed deve loper until a special m ee tin g held o n Au gust 2 1st . A t that me eti ng, the Board selected Medici Com muniti es as the preferred dev elo p er. Simultaneo us to n ego tiations with Medici, the EURA Boa rd dir ec te d staff to obtain an updat e to the app raisa l of the prop erty obtained in September 2012. That new appraisa l was obtained and in the opinio n of th e app raise r, th e fa ir m ark et va lu e of the City-own ed property was determined to be $215,000. FINANCIAL IMPACT T he C ity w ill rece ive $2 1 5,000 frorn the EU RA o n ce th e closing on the sale of th e rem ainder of the p ro j ect property occurs. Th e proj ec t has an es tim at ed va lu e of $24.8 million. Th e City wi ll rec eive one-time revenues including us e tax , permit fees and p arks fee i n li eu of d edic ation . It is a nti c ip at ed th at M ed ic i w ill r eque st r edev e lopm ent ass ista nce under th e C ity's in ce ntiv e policy which w ill affect th e net one-time r eve nu es to th e C it y. The project includes 23,500 squ a r e feet of conrn1ercia l space and sa l es tax r eve nu e fr o m th ese uses is anticipated. Pr ope rty tax re ve nue will be rece ived by th e City and other ta x ing entities o nce construction is compl ete and th e property is includ ed on the county tax ro ll. LIST OF ATTACHMENTS Council Bill No. 57, to which is attached a Sal es Agreement •