HomeMy WebLinkAbout2013 Resolution No. 002•
RESOLUTION NO ~
S£,RIJlS OF 2013
A RESOLU'l JON APl'KOVINO A REDEVELOPMENT ASSISTANCE AGREEMENT WITH
HAMPDEN BROADWAY, LLC , FOR THE REDEVELOl'MEN'l OF 3695 SOUTH LrNCOL N
STREET IN ENGLEWOOD , COLORJ\DC .
WHEREAS, the successful attraction and r:1ent1on of high quality developme:11 to the Ci1y of
Englewood provides employment and hous ing o~ponunilics and i11 ,rcased revenue fo r ~it izen
services ond is therefore on important pubhc pur;,ose ; nnd
WHEREAS. it is import ant for the City of Englewood to anract new s:iles and use iax revenue
in the Ci ty and remain competitive with other local govenuncnts in creatir.g assistance for
redevelopment of existing spac e i11 th< City, and
WHEREAS , Hampden Broadway Holdi ngs plans to de~ltsh the fo~r Flood M1ddJeSchool
and build an opnrtmen1 comple x; and
WH EREAS, pu,~uai:t to the pro visions oncc,ion 31 -1 S-903 , C.R.S .. :he City ha s the
· authonty to r.egotiote for incentive payments or credits with •••Jlll yers wh•, esta bl ish new
business facilities or who expand cxisnng business faciliucs ; and
WHEREAS , there has been proposed a Rcdevclo pmr .u Assistance Agreement between the
Ciry anc llampdcn Broodwoy, LLC, o copy of which is attached hereto as Exhibit "A" and
incorporated herein by this rtfcrcnce; •nd
WHEREAS . pursuant to the ConMitution of the Slate of Co lorodo , and the Home Kulc Charter
and ordinances of th e Ci ty nf Englewood , the City h2s authority to enter int o the proposed
Redevelopment A&!;i r.lancc Agrccmeni ; nnd
WH!:I:U::AS, the Cny Council finds 1t11 the proposed Rcdevclo?mcnt Assi,taucc Ag,ecment is
consistent with and in furtherance of the business assistance policies of the City, and desires to
approve the At>rcemont and authorize its execution and implementalion;
NOW , THEREFORE. OE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
ENGLEWOOD, COLORADO , THA"f:
Sectinn I TI,e pro1ioscd Rede velopment Assistance Agreement between the Cit y of
En glew ood and Hampden Broadway, LLC is hereby ap prnv1,rl , a copy of which is attached
hereto as Exhibit A .
!;cctic,i, 2. fhc Mayor is hcrcb) nutlmrizod to execute the i\~recmcnt on behalf of the City
Council cof the C ity of l!nglcwood .
Al)()PTFTJ ANn APPROVED this 7th <lay of .l :mu:i i,, }013 .
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l.011 · ishir, /1. Ellis, City Clerk
I. 1 oucrishia A. Ellii.. City Cl erk for•~ Cit y of Er1~Jcwood. Cti lor.1 <10 . hereby cc:nify the
abl 1vc is a tnit-C'o py of Rt!sol uti on Nn _A __ , Scri1~,;; of '.?011 . .
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REDEVELOrMF.N'f ASSISTANCE AGREEMENT FOR
UAMl'DEN BROADWAY, LLC,
[N Tm: crrv OF ENGLEWOOD.
THIS AG RF.EMEi-ff (' Agreaucnt") is made and entered into as of the __ day of
_____ .. __ . , 2012, betwoen lheCrrY OF ENGLEWOOD, a Colonido oome rule municipal
cor;,oratioo (the "City"), nnd HAMPDEN i:lROADWA Y, l.J.C, a Colorado limited hability
corporation.
WHF.RF.AS, the City wish~• to provide C<ltaul business assistance in c:onocction with !he
former Flood Middle School silt. redevelopment of approximately 4.56 a= located at South
Broadway and Kenyon A,·cnuc al,n known as 3695 South Lincoln Stn:ct , in Englewood,
Colorado (the p:cject); an~
lliHEREAS, Hompdcn Broadway, LLC plans to purclwc and cause the r-..aevelnpmcnt of the ·
propcn)· luc•tc:d •t 3695 Soulh Lincoln Strccl, Englewood, CO 80113 into an aparanc:it project;
and
WHEREAS ,.i t is an::cipatcd that the projcc:t will generate property ta> and revenue, and
create new housin& and associ&ted ifflJ)l'Ove:ments in the City; tu generate new sales and u.,c tax
revenue, and to create :icw jobs in the Ctty; aod
WHEREAS , City Cou.,cil finds L'te excc:ution of this Agreement will save to provide a public
benefit and advance the public intcreot and welfare of the City. '
NOW, TIIBREFORE. in consideration oftbc mutual promi ., .. set forth below, the City and
Hampdeo Bmn~way, LLC ai:rcc as follows:
I . t:se Tax Rcbat ... The Cit)· shall rchate to ·Hampden Broadway. UC. building use tax
revenu .. , derived from the imposition of the City\< 3 .SY, u.<e 1u. that an: actually collected
by the City and attn'bu1,1oi, to this project . R<bat"' shall not ex~ the lesser amount of
$170,000 or the actual cost incum:d for reloeotioo of the City Ditch. This reb,te i , tn
assist :n lh< uccc..;uy .-clocatioo ofth. City Ditch aero:;:; the subject property. The City
Dill:h Right-of-Woy vacatiou and HJlllll of a new Right-of-Wey rnwt be Approved by the
Water :wt Sewer Boan! and City Cuuucil, which approval proccsa ""lwre, approximately
six weeks to complete. Tb• construction of the 1cloc111ed City Ditch will be pur.ruant to
City appro,•cd plans and spcc ~ficatioiu . Consuuction may tllkc: ph,cc al an)' tim:: with the
he•ins or reconncc:tion limited to 48 h:>ws on an npprovcd date . Docwm:nlat ior. and Citv
approval of the completed Cit~ Ditch and doeuntentallon of the actual cost of rclocatiuo ,s
requi,cd prior to the processing ofthercquost for the rcbote ofbuildbg use ta>.
2. fl!l'!1lml. gi.B!ru!£, Toe building we tu rebate shall be paid by the City in a single
P•>mmt and .,hill be made after receipt of paymcnu of building use 1,x in au amount
equal to or in l!Xcess of the rebate amount. The City shall pay no i.utm:st oo the amount
subjcef to rcb,n e .
J.!!r. nJ l:U"'I,;, Pu.ids rebated pursuant to th '· /\j:r<cmmll ,noll he useri t,y Hnmr,dcn
Tlrondwny, Ll .. C &oltly to rcimbur'Jc Hamr,t.,.:n Bma.dwnv. LI.,(; for the: costs incunt:d for
thordocatiun of the City Dilch.
The City agrees tc reduce the pnrl< dedication fc•-in-licu fr.im $20,000 to $10,COO per ncre
of the p:uk ltind dcclh:ntinn rcqnirr.mr'.11t . A." rcquit'!'d by th!." City', ll11iJil.!<l Dt:v(.llopinenl
Cude, lhe nctu.11 tt :noun: clue will be b.im:d nn lhc 101111 uun:hcr or dwell inc unit~ X I .IC X
.0107 X $10,0(10 . fru cxumplc, hal'iCd on 310 u1Ut~1 thc land Uedmution n:qui1e111t..111 i!;
~.9706 acre5, which at S 10,000 per acre would total SS9,?06 .
5. Thr City 11grc::s 10 utilize 1lll credit from Xccl Bner(!Y for rnloca1in~ nn<l/or undcrgroundin,;
of Xcel nverh:ad utility distribution lines loc,ued on the propeny, estimated nt SJIJU,UUU .
The Xcc;.I agreement provide,.., cmly for ulilily linQ owm.,J by Xcel. Humpdcn Bmadwny,
LLC it rc:;ponsib)e for the cost .:>frclocation of all oth:r lines . IJampdcn Broadway, LLC
will cC1ordin:itc the Xcel unCcrgroundinc through the Ci1y':: Public Workn t>cpnnmcnt.
6. Prior to acquiring a building pr.rmit, Hampdl:n Rmadw11)1, U..C will clcpm::it .')I0 ,00(1 in
t:~row with the City Finar:cc Dcp:t.nmcn1 for 1h:cosl of i1S5ociated 1nojccl n:lutcd lraf!ic
itnprovcmcnls al lhc Dro11t.lwuy/Kc11yon int:rscctlon as dcc :ncd nccc!isn.ry t,y the City .
r hc:1:: funds wil 1 n:::mair. in escrow v,:!th 'he City fo r o pcri,(I of two ycan1 uf\l.:r iNsuo11 1\;=: of
~ certificate of occupancy or at i;uzh time n,; the development is 90% ocoupicd,
w:,icncvcr r.nmc5 fir,;t. At Uull lime, the Cit y will ~rund any kr.lour11 no! ob liga ted or
cxptmded hy the Ci•.y for ~uch traffic improvr.mcnts .
7. Entin: Awec::mcnt. Thif. imtrumcnt !>hnll comd1utc ll1e entire agn.:::cmr.ut between lhc Ci1y
nr.d Hnmpdcn Broodwny, LLC nnd ~u11cm:dcs any prior ngrccmt.11UI bet.ween the partier;
u1:d th•ir ugonls or reprci:cntotivc,, all of which nr• mcrg,d into and r:wol<o<I h)' this
Agrcr.m!':nl with re~~r.f to its suhJt:d matter Cont.tel tn!Ormatinn if as folinu•s:
Edward Bnrso~chi, Co•M 111u1i;c:
Thcm~r. Bradhury, Jr., Co-Mnnnga
Hampden D1 o•dway, LLC
4725 South Monaco Su,,ct, Sul:e 20S
Ucnver, CO 80237
Mike Fh1h011y, Deputy City Mllllllgc:r
Alon White, D!rcctnr o(Communi~y De~clopmcnt
IOOO Englewood Parkway
Englcwooc, CO 8011 0
R. TcnuinaLio1 1i. ·n,h, A~:n:(:mc:nt tihall tc.:nninutc und become void and ofno force or cfJcc1
upon the Ci 1y if, by Dccctr.hcr 31, 2015, llamP''-:n Drnorl\11,·ay, LLC llil) uot cu1111,lclcll the
project (as evidenced by lhc iG?.uancc ofn ccrtificctcofoccupancy); nr should Hampden
Broadway. LLC fail, uflcr o thi:"ty d:iy No1i c.t of Vlolntion, to com?IY \lo•ilh nny City code.
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9. Suhordir;ntjon. The City', obliaaliom pu1suanl lo 1hls AgRcmenl are subordinate 10 the
Cil)'s obll1111tions for the repayment of any curT<nt or future bonded indoblodiiOla and ore
continge.,t upon the Watcnc~ of a surplus in 1Gles and use tu revcnu:s i0 excess of the
..tes and uae tax revenues ncecuDJY lo meet aueh cxiatina or futun, bond indcbu:dn .. s.
The Cily shall mec-. iu obligations under this Agrccmon'. only ancr the City has satisfied
all other obligntion, with respect to the use of sales and usc Ill.\ rcvenut:S for bond
repayment pwpo!ic:.i , Fur I.be pwpUles oftlus Agrc1,,-manl1 the lt.rtm 11bonded
iudebtednc,,s," "bonds," and slmllar tom11 describin; the possible forms of Indebtedness
Include all forms of indebtedness that may be incwrod by the City, including, bal nol
limitod lo , gcr.cral ohlli;atinn bonds, revenue bo~d,, revenue anticipation r.olcs, tax
increment notes, tax incn:monl bonds , and aU other fnnn., of contrac\1Jul indebtedness of
whalaoe,·cr nature lhnl is in any way ,:cured or collaleralized by ssles and we tax
revenues of the Cily .
I 0. Annual Appruprjatjcm Nothing it, this Ab'Teoment shall he dccm<d or constr\led as
creating a :nultiple 6sca . year obligation on lhe part of the Cily within the meanioa of
Colorado Constitution Article X, Section 20, or any olker conslitulional or slatUtory
pro vision, and the Cily 's cbliaa1ions hereunder are cxprcsaly condition•! upon annual
Rppropr:Rt 1on by the Ci ry Council , in il1i imlt. di!lcretinn . H11mr:ien Rroadw11y , LLC
understands and ngrees that nny ctecis ion of Ci ty Council 10 not nppropriate funds for
payment shall be without penalty or recoW11e lo the City md, I\Jrther, shall not affect,
impair, or invali date acy of the remaining tenns or provisions of thic: Agreement.
t 1. Governing Law; V=iuc. Th.is Aar:cmcnl shilll bi.: e,uvcmod and r;onstrued in accordance
wilh the law• of tho State of Colonido . Thi, Agreement shall be subject lo, ond cou.strucd
In •lril:t acco:dance wilh lhe City uf llu~l•wuuu Cily Ch.,ter wiu the Cily of Englewood
Municipal Code. In the evem of a dispulc concerning aoy provision of this Agrecmcnt , 1
the parties agree lhal prior ·,o commencing wiy litiJllltion : 1hey shall 6rsi engage, in good
fai~\ the services of a mu1u1lly ac.:cptable , quahficd, and experienced mediator or panel
of mediatora for the pwpose o! resolving such dispule. In tho evenl such dispute is not
fully rcsol vcd by mediatioo or olherwise within 60 da)~ after a request fur medilllion by
either party, thrn cilhorpartymay commence legal proceedings rega.-tling lhe dispule .
The ,•enue fo r any lawsuil conccroing lhis a(!l'CCfflCnt shall be in the Districl Court for
Arapahoe County. Colorado .
12. l&w!l ChaU;nge · llscmw . The City shall have no obligalion to make. ony rcbal e p•yment
i,-,eundcr durins the pcndcncy of any legal challengo lo !:>is Agreement The ponies
coveuaot foa t ncilhtr will initiate any legal challenge to the vulidity or enforceability of
•.hi , Agroomont ognin•t MY chnilonge by ony third pony . Any funds •ppropri ntod for
paynicnl Wider thi s Agreement sho.11 be escrowed in a sepwtc City account in the event
there is a ),;gnl chollcn s c to this Agreement.
l3 . ~ This Agrr ·mcnl is personol to H•mpden Broa<lway, LLC and Hwnpden
Broadway; LLC may r-Jl asstgn any of die obligations, benefits or provisions of lhe
Agreement in wbolc 01 in any plllt without lhe express wtillcn aulhDrizution of the Cily
Couoc il. /\J!y purponcd ossignmcnl, 1ransfcr, pledge, or encumbrance made wilhoul such
prior wtitl~ auU1oriwtioo shall be voic .
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I 4. No Joint Ventur,;. Nothing In thb Agreement i, intended orsh•II be conatruod to c=t• ,
jobt venture between the Cily Wld Hampden Hrnndwny, I.LC . The City shall ncv.:r be
linhle or responsible for nny debt ur obligation or Hamr,dtn Broadwoy, LI.I:.
MAMPDEN BROA[)ll'AY . LLC
l:ly : __ ._' _,:-,:_-_ -_ -_ -~""--------
Thomil5 fl. BrndhUI)', J ;., ( ;r,.Mannger
STATE OF COLORADO
C:OIJNTY 0~ 7) e)'I 1/e,._.
The fmc:guing instrument wus utlmuwlcdgcd before me this/ 1~ day of ftf(C(,-IVI,:.,,.,
20.!_Z,. by Thoma, II. llradbury, Jr ., as Co,Mm,agcr ofHn :updcu 8,oudway, LLC
My commission cxp,rr.,: tfN//t'1(u11t1
STATE OF COLORADO
COUNrY OP b ~✓ti:
HUGHE. SMITH
NOTARY PUBLIC
STATE OF COLORADO
NOTARY ID 20084033111
MY COll,IIBBION EXPIRES IIEPTEIIBER 29, 1016
·n1: forc1:oing i1,~lniment wns acknowledged before me Ibis 11!':: day Or~'~
1:1'4PM 12114/2012
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__ , 20!1,. by F..Jward Banoc;h,, as Co-Manager of l!Ampdcn Broad••ay, LLC
My commission ••pires : /Jfl//1qfttJJ(p r •
r.rrv OF ENGL EWOOD
By:_~-----:~-=--:-:-----
P.andy P. Peon. Ma!'or
ATTEST:
Loucrishia A. llllis, City Clerk
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HUGH E. SMITH
NOTARV PUBLIC
STATE OF COLORADO
NOTARY IIJ 20084033111
IIY COMlllSSIO~ u••R~S oEPTEIISER 21,201'
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COUNCIL COMMUNICATION
Dale: Agenda Item: Subject:
11 Ci Flnorl Mirfdle School Redevelopment
January 7, W13 Assis tance Request -----
Initiated B1~ I Staff Source:
City Mana ge·'s Oif,ce Michael Flaherty, Deputy City Monuger
COUNCIL GOAL ANO PREVIOUS COUNCIL ACTION
City Coun ci l discussed the propo;ed Redevelopment Assistance Agreem ent at the December 10, 2012
Executive Ses!i ion and th ere Wil'-ron~?ns11s In hr ing lh P. propo sal forwa rd for consideration al an upcoming
City Council meeting .
One related goal ot rnglewood's Comprehensive Plan is to initiate business re:ention, revitalization, and
growth strategies. Th e Retail Anal1•s•s and Site Development Assessm ent also rec onmends coasidering C·ty
involvement in the riPvPlorment of th e former Flood Middle Scho el site. In add ition, late last summer City
Council implemented an Econom ic Development Incenti ve Policy airned ,,t encouraging redev elo pm ent in
Euglewood .
RFC:OMMENDED ACTION
Staff recommends that Co"ncil adopt the attached re solution author izing the Ci?y of Englewood to enter
into an agreement with Hampden Broadv,ay, LLC fur the City tu µ1u vidtt d~~i~lrl11ce io suppon
redevelopmen: of tne former Flood Middle School site . (Hampden ~roadway has been established by
Rar~ury Holdings to take owners hi p of the Flood prop erty from the Englewood School District and prepare
the site for vertical development b1• Wood Partners)
BACKGROUNU, ANALYSIS , ANO ALIEKNATIVES IDENTIFIED
TI,e pr o posed agreement calls for the City to assist Hampden Broadway with th e proposed redevelopment
of the former Flood Middle Sc ho ol, which was vacated in 200 7, when Englewood Schools merged the two
middle ,chools . TI,e prupused redeveloµ111e11t will ,e,ult in a privat e investment of $)8 million r,,, the
construction ol up to JI O apartment units that will house approximately 500 new residents .
Based on COLincrl's goal to attract new sales and use ta ,, and reta in ,,nd ex pand P.xisting jnhs in the City,
the proposed agreement is presented for City Council's consideration. If Council approves the agreement,
any assistance would be contingent upon the completion of tire new ueve lopment no later than December
31,201 S .
·17 ll' Cii t :,;hc1ll reb11t e lo Hampden Rro,,dway, LLC those use tax rc\·t..:1111cs deri ved from the City's
.l .:i'X , ~t:m.:ral use 1,,x th,11 are actt1c1lly aul'it1.1titbl e 10 this proj ec t. R1.::!'l,-it c s sh,,1111 01 <.:xct:cd
$170,000 rn t 1e :1(.111,11 LW,I i11unrcd ro1 1dnc.111u11 uf lh e Ci ty ;:>itL.li. w hich c vc:1 ,u 11 ount is lowe1.
~ Tin: C1t \1 will r1gt t!l: l1 1 1·t:c.J11 cc Ilic p ;uk d 1.Hli c,1t ifm fet'•i11 -lii:L1 i111rn $~t),(l(J(I w S 10,000 pt:r <K i t:! <Jf
the par~ 1,,nd :J e di G1 li1111 rt;.!q11i1 c 111 cnl .'\s 1t!qt1i1L•cl h\' l:t 1J,:ll..:!w11ocl '!. Unifit:cl Dcvt!lnp11lt:11 1 Cnde, tlt e
tll.l t11d t1rnU11 ,11 d11 1.; \'\1ill l.•t: 11,1:,.c tl u 11 ti 11:.: 111\;d 1111111l1c1 of dw.:lli11g 1111its X I .H X .0 107 X s-·10,tHIO. 1:1J 1
L!S .'tmple, h.1~1~cl r111 :1 ICI 111111 :,., 1:1~ 1.111d dt:dic~1tin11 n::q uii enn:111 b 1 ~J70(, ,1L1 Cs, which would 1111.il
$!':~J.70(1, c;ik11l.-11 l•cl a 1 $1 0 ,nflO p l'!r ,1c 1c-:.
:\. Tl,l: Ci lv will .i !;l l!l: tu u~~ ib l.n :di1 f1u 111 XLd r:1u:1g y to 1cl uc r1 lo.:.' (111uJcrg1uuml) Xcd ·~ uvcrl1 l:,1t l
utili :y tl 1!-o l1il,u1io11 li11e :,, wl11d1 i!I L:~li1 11.it~d 111 ui!I: $'\00,000, T!1t X1 .l!I ,1t9ee111 ~11l p1·vviJ~~ 1111ly fur
lililil y liu t-::,. tl\o'.-ned by xu~I. H ,1111pde11 B10.1dwc1v b rP.!\pom,i hlt! hu tlu~ c.:ost or ,~I UCiJ ling ,1'.I ul lu i1
litl!!S.
4. Ptirn l o ;,1..qui1ii1 ~ ,1 huilc.li11 g p 1.·:11 ni l, H,1111p de 11 61n,1d w o1y will dt:p1 :!l1I $10,000 •n t!~Cf'U 1N wilh tl1 e
C t1v ((II ti 1e u,~1 u l ,1s~uL i,11t~t: pwj•.!Ll-relali.:d 11 ,Hfit.i 111111 tlVl·11n :11b dt:!e111~d ru;lt'.~:t dlY l>y 1lu: C ity d l
th e l.~ro achw 1y aud Kel"l)'Oll i 11lt:rsec tion :1dj;1u:n1 10 ti t~ dcvclop111e11t. ·n,ese 1und s will 1e111ai11 in
~M..:1uw fo , ..t pe1iod o f twu yt'iU S ;,,;ter iss u,11n.c oi the t.:crtifi :.:t11t~ uf u<.:cupa11 ·.1 or at su ch ti mt the
d1.::v elup1rn.:11l b 90% uccupi!:!d, wliid1t::ver <.:utnes fir !II.
l'INANCIAL IMl'ACT
The p1lJp~11y wil i b ~g111 tL• y it:!ld p1 n pL•11 y la>. lo 11 11:! Ci t\' ~11 a,, c~t1111 .1tc d $ t ·1,ouo a 1u1ut1 lly . Since tl1 e
p1 upt•1ty hi.I~ 1101 p1 e viomly lx :t:,1 u11 the ldX rulls. llil: µ1up1::11y 1,·IX i11Lu 11:::: wi ll IJ~ lully "11~1" rt!lctl ive tu
c:u :1e nl rt:c ~ipls.
T l 1e re dt~veloprne 11t's projectl:!d $30 1n illin11 construc.:ii o n cm,1s, ba~ed 1>11 a11 es1imr1t•:d S 115,000 per unit. is
t!Xµt!C h~l.l :u yudd m1 l!:,lim ateU $:5001000 in Building U se Ta xi:!~.
111 addition, lhe !iOO new re sidents. with a µrujec ted averal?e a1111ual household income oi be1wc en $85,000
a ·1d S 100,C_ill ll, ,in• likely tu lie p11rd1asi11g gomJs and service, i11 11,e City uf f:11 glewood. TI1is s1:e11ding will
not only h elp i11111rn vt! ln1 si11~ss fm lrn . .:1tl m~rc.:ha nts, but ,-viii h . .'sult i11 increa se d Scl es Ta :-.e s 10 Ihe City .
US T Of ATTACHMENTS
Proposed Redevel opment Ass is 1ancc Agreem en t
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