HomeMy WebLinkAbout2013 Resolution No. 038RESOLUTION NO . jf
SERIES Of 2013 --
A RESOLUTION APPROVlNG A REDEVELOPMENT ASSISTANCE AGREEMENT WITH
LCP OXFORD, LLC , FOR THE REDEVELOPMENT OF 1366 WEST OXFORD A VENUE IN
ENGLEWOOD, COLORADO .
WHEREAS, the successful attraction and retention o: !ugh quality development to the City of
Englewood provides employment :u1d housine opportun ities and increased revenue for citizen
serv'ces which is an important public purpose; and
WHEREAS, it is important for the City of Englewood to attract new ;ales and use tax revenue
in the City and remain competitive with other local governments in creating nssistnnee fo r
rttlcvelopmenl of exi~line space ir. tht: Ci1y ; anci
WHEREAS, LCP Oxford , LLC plans to demolish the former Manin Plastics Building and
ouild an apartment com?I«; and
WHEREAS, pursuant to the provisions of Section 31-15-903, C.R.S ., Ilic City has the
autl1ori1y to negotiate for incentive payments or credits wit.1 taxpoyers who establish new
business faci lities or who expand existing business fo:ilities: and
WHEREAS, a Redevelopment Assistance Agreement has been proposed between the City and
LCP Oxford, LLC , n copy of which is attached hereto a., Exhibit .. A" and incorporated herein by
this reference; and
WHEREAS , tho City Cow,ci.1 finds tha: the proposed Rcdevclopmen: Assistance Agreement is
cuusislenl with i111c.l iu funht:rauct: uf the: business assiSlaliCL'.: pulici~ of the Ci Ly, aml U.esin:s to
approve the Agreement and autl1orize its execution and impletnt:r1tation;
KOW, THEREFORE, BE IT RESOLVED BY TI-!E CITY COUNCTI_ OF THE CITY OF
E'IGLEWOOD, COLORADO, TiiAT:
Section I. The proposed Kcdevelopment Assistanee Agreement between the City of
E"glewood and LCP Oxford, LLC. is hereby approved, a copy of which is attached hereto as
Exhibit A.
Sec;ion 2. The Mayor is hereby authorized to execute the Agreement on behalf of the City
Council of the City of Englewood .
I, Loucr:shm A. Ell is, Ci1y Clerk for 1~_.&:ily of En~lcwood , Colorado . hereby ccniry 1hc
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.ou cr b hii: A. Ellis, Ci1y Cle rk
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REDEVELOPMENT ASSISTANCE AGREEMENT FOR
1'IIE OXFORD STATION TOD WITS LCP OXFORD, LLC
IN THE CITY OF ENGLEWOOD.
THIS ACJRP..EMENT (" Agn,ement") is made •nd entered into M of the __ day of
_____ _, 2013 , between lhe CITY OF ENGLEWOOD, a Colorado home rule municipal
corpo,.tion (the "City"), and LCP O,cford, LLC, • Colo,.do limited liability corporation. who se
address is 5711 South Nevada S11=1, Li11lcion, CO 80120 ..
WHllR.EAS, the City wisbcs lo pru vide "'"1ui11 bwiliac,,.. •.,.i,uwcc in cunneclion with the
rcdevclupmcot or• former indusL1al manufacturina facility of approximately 3.5 acres located at
South Navajo Street and Oxford Avenue also known as 1366 West Odore Avenue, in
Englewood, Colorado (the project); ond
WHEREAS, LCP Oxford, LLC has purchased and plans lo redevelop the property located at
1366 West Oxford Avenue , Englewood, CO 80110 into a 252 unil multifamily residential
project ; and
WHEREAS, it is anti cipRlcd that the project will generate property tax and revenue ; create
new hou1ins and a,sociated :inprovemml£ in lhe City; generate new sales 311d use tnx revenue,
and crmte new jobs in the City ; and
WHEREAS, City Cow1cil iwds the c~ccu1,011 qf this A(P'CC'Wcmt wili ,crvc to provide• public
bcncfit Blld advance the public interest and welfare of tho Chy.
NOW , 1'HEWORE, in consideration of the murual promises set fonh below, the City and
LCP Oxford, LLC agree as follows :
I. Building Use Tax Reh~. The City shall rebate to LCP Oxford, LLC, buildina use tax
revenues, derived from the impo,itiot of the C:iry's 3.So/o use tai, thlll nrc actually collected
by the City and attnbutable to this project Rebates shall no: exceed the lesser 11mowit' of
$260,000 or 55% of lite Building Use Tax due on this project.
2. FumjJUrc Fixtures & Eqyjpmcnt Use Tu Rebate, Tbe City shall rebate to LCP Oxford,
LLC , Furuitwe, Fi,twe$ & EquiptUCJtt U•t TW< derived from the impo£ition or the City'•
3 .5% Uae Tax, that arc actually collected by the City and atmbutable to the project . 1bis
rebate shall not exceed the lesser amount ors 17,500.00 or I OOYo of the Furniture, Fixtur&
11:. Equipment Uac Tax due on this project .
3. Wi!lm5!(SJ1ill!i.ui:hrmil..E=, The City shall waive buildinc permit fees attributable to
this project not to exceed the les,or of SO% oftht. onticipnte.1 fees nr $44,500 .
<. The City agrees to reduce "F.., in Liou" for Porlo:. Tb• City Gbnll wllive "Feeo in Liou"
for Purks nnributnble to tlw project , not to exceed lhc lesser of 50% of the tmticipntcd feca
or $48,500 .00 .
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S. l:uvm•Dl o[Pupda. The Dulldin~ and Fumlturc, Fixturca & Equipment Use 1'ox r<hn10, •
Hhu!I be paid by tho Chy in o •lnal• paymonl ond &hnll bo made nftor receipt of payment• o(
building u,o tax In an 111110Wll equnl to or in cxce., of the rebalr. •mount . Th• Ci ty ,hall
11ny r.o Interest on Uie nmnunl ,11hjlll'.I tn rchnl n Thr. w11iver of fees ,hall he mode upn n the
pn yn,ent nf the remaining (ccs owed .
6. JJJ!9.!lO'uud~. F1md1 rch•tod pur1ua111 to llu , Agroo111011t 1:1111 be uscd by LCP Oxfo11I,
LLC solely to rcimbun e l,CP Ox fo rd, LLC: for the 0011, incurred :Ur the rclot nlion or tho
in,provcment• ndjnucnt to their projeol in Uie Navajo Right ,u(-\\111y and the pedoatrillll
rainp nnd retaining w•ll at lhc Oxford-Nuvojo interaootion .
7. l!nlim Aru;qngpL This ituttrument shall con11ltute th e entire uareement between tho City
ind LCP Oxford, LLC und supersedes any prior uiuoancnls between Ute p;utlet and their
•~<111• or J'CPIC10111ativc•, all or wluch we n1eracd imo And revoked by thia AljJ'COmmt with
respect to ill subject maUcr. Contnct infotmatlon ia 11 !ollawa :
Jonathan Bu sh, M•naging Mcinber
LC!' Oxford, LL C
S'/ 11 South Ncvuda Street
Littleton, CO 80l20-461S
Mike l'l11bcrty, Deputy Cily Man.gcr
Alwi Wbltc , Dircctur of Community Dovoloptnent
1000 Englewood Porkwoy
Englewood, CO 80 110
8. I•DDIMUAO, This Agreement shall tcnnlnatc and become void and of no force nnd effect
upon tho Cl:y lfby April, 2018 LCr Oxford, LLC has not oomplc1cd the project (a,
ovidcnccd by the issuance o( • certificate or ot:011p111c y).
9. Subgrdinptjon . Th• Clly'c obliga \ioni punuanl to 1h11 Agroomont ore subordinate to tho
Ci!)l'I obligations for the repayment of any CWTent or !\nun, bonded indebtedne111 ond •r•
contin9C111 upon the ex.islence of• surpiu, in sales and u10 tax revenue.• In excaH ofthc
1nlcs and u,e tnx revenues necessary 10 meet such cxlslina or (ul\lro bond lndobttdness.
Tho City shall meet Ill obllgaUons wider U1i1 A1,1rccmcn1 only after tho City hu1 ~ati•r.c:d
all other obli~•tlo1111 with rol)loCI to the UIIC of HIOII oud use ta1.1·ovc,1uo1 fo r b011d
repayment purp01ca . !'or !he pwpoacaofthi, Agrccmrnl, tho lomu "bonded
indobtcdncas," "bonds," and 1imlh1r tmm., dcscribina the poo,ii,lo form, of indabtoclncuo
include all forma ofiDdcbtedntr;,: that may be incwrod by !he City, iDoludina, but not
limited to, general obligation bonds , revenue bonds, revenue anticipat ion nnt es , tu
increment notes, tux Increment t,ond•, •nd •II nther fnffll'I nf cnntnetual indebtedness of
whaW>cvor norure thot I• in any woy secured or collaternll1.cd by sale.\ and u.s.e Wt
revanucn orlho Clry .
9. MJY•I Anpmurialjog. Nothin g in thia A8J'Ocmcnt shall be deemed or co111trucd ••
creating• multiple fiacnl year obliantion on tho port o( tho City with.in tho meanlna of
Colorodo Cott1ti1Ution Anicle X, Section 20, or any otho:-ooutillltional or 1tatu1ory
provicion, and tht City's obligations hereunder are exprosslycondliional 11pon IUlllUnl
appropriation by tho Cily C'.ouncll, in 11s 110le d:screli on . LCY OKford, Ll..C understands
and •~ that any dcclalon of City Council to not appropriate funds fllr paymont sh.ID be
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wlthnUI reMII)' or recn11r11110 the Cliy and, t.uthcr, shall not affecl , Impair, or Invalidate
any nf the rem•lninl t"""' nr provu lona of thla Aarcement.
Qpy;mlnp Low· YcnYO· Thi~ Agreemenl Rhall be aovemod and conurued in accnrdnnoe
with Ille laws of the State of Colnrado . This Agri,ement ahnll be m1bject 10, Md conalrucd
in stricl aeeordanoo with lhc City of Englewood City Charter Md the Cily of Bn11le111ood
Municipal Codo . Tbe vanue for any law11Ult conr.emlng this •sre•menl ■hall be In lhe
Oiolriol Coun for Napohoe County, Colorodo . .
Loaal Cbn\lmlF · Eocrow . Tho City shall have no oblisation lo make any rebaie payml!llt
hereunder during lh.c pcndeocy of nny logal challenge lo this Agroomont, Tho plll'lioa
covenant that neither will lnllialc any legal challenge lo the validity or cnforccobillly or
1h11 Agreement ogainll any challenge by any third pariy . AJJy fundll appropriated for
payment wider Ilia Awe,menl shall be escrowed in , sq,aralo City ac count in U,c event
there i, u loaal challcugc tu Uus A!lrcemcnt .
Aujgnmcnl, This Agreement I, pononal to LCP O,ford, which may nol us,11111 w1y or tile
obllaations , benefits or provisions of the Agrccrucnl In whole or iu wiy part wllhout U1c
express written authorization of the City Cowicll , Any PUJ1l0Mod aaslgwncnt, tran.,rer ,
plodi•, or oncumblllDce made without au ch prior written 1u1horl1ation ahlll be void ,
No Jglnt Venture. Nothing In 1h11 Aarccmont IA inlcmdcd or shall be conllNcd 10 create•
joint vooturo between the City and LCP Oxford , LLC. 'lbe City 1ball never be hable or
responsible for any dobc or obliaation of LCP Oxford, U.C ,
Remainder of !'age lnlcolionally left blank
1:11 rt,t 1119no11
OMl'IINY . LCP OXFORD, LLC
By ;
Bi•;
Uuloton Capital Partners, LLC, ill Mnnagor
Denver City Town Co1npony, LLC, member
By :; -,..,..· .,...______
~T/\TilOFC..1Jl,URAlJO ) ·---------
MyQimmJ15loo E,phes ,0/31/2015
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COUNTY OF A~. lw<: ) ..io i J
Tht foregoing tnsuumcnl wa~ ncknowlodr,od before me thlg ..,J,2_ rloy of .!.!_~, by
Jono1h11n D111h, a, M11!14gin&; Member of LCI' Oxford , LLC
My conwu.,.ion expire,,: Io I 11 1 I c-'C'i ')
STATE OF COLORADO
COUNTY or-Av,,11,,bi"'---.
The foregoing insuument wa• acknowlodged before mo 11,,. _2fu,_ dny of -Cl:idL hy Si eve
Kurt~,"" Managing Member ofLCP Oxford, LLC
Mycommi.,innr.xpiffls: C:u,··/i 5 {' .--
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Cfl'Y OF llNOLllWOOD
Ry;,::--.,...-,,-~---,--,---
R.11mly I'. Ptw1, Mayor
Altest:
Loucrishia A. Ellis, City Clerk
l ,l) rM l119n0l3
My Commission EIC)IIIII 09.~lffllll
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• COUNCIL COMMUNICATION
DATE: AGENDA ITIM: SUBJECT:
April 15, 2013 11 Ci Littleton Capital Partners
Redevelopment Assistance Request
INITIAl'EO KY: STAFF SOURCE:
City Manager's Office Darren Hollingsworth, Economic Development
Manager
COUNCIL GOAL AND PREVIOUS COUNCIL ACTION
Council approved Littleton Capital Par:ners' (_CP) Planned Unit Developn·ent for the redevelopment and
reuse of th• fo rm er Mart,n Plastic, site o n Octoher ,, 2012. Addit ionally, City Council discussed the
proposed Redevelopment Assistance Agreement at the September I 0, 2012 and February 4, 2013 Executive
Sessions and there was consemus lo bring the prop osal for consideration at an upcoming City Council
meeting.
Englewood 's Comprehensive Plan slates a goal of community rev italitation and increased housing
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opportunities . The Retail Anal1,ls and Sile Development Assessment also recommends the development of
housing l o support existing and new retailers .
RtCOMMENDEO ACTION
Staff recommends that Council adopt the att ached resoluti on authorizing th e City ol Englewood lo enter into
an agreement with the d evelopers for the Martin Plast ics Proper!\'. Lit1le1on Cap ital Partners, d .b.a. LCP
Oxford, LLC and its management e, 1til'es . The proposed use of iunds w,11 offset the cost of public
111frastructure necessary to su;:,port tne p,oposed 2:i2 unit multi-family residential project near the Oxford
Light Rall St ation.
BACKGROUND, ANALYSIS, A~D ALTERNATIVES IDENTIFIED
The proposed project ,nvolves 1edev elopmen1 of a former industrial manu facturing facility to a residential
;,rojcct which capitalizes on its proximity to the adjacent Oxlord Light Rail Station. LCP is approved for a
252-unit mullifamily resi dential proj ec t on the 3.5 acre former Martin Plast ics facility. The total development
cos ts, is est imated at approximately $35,646,000. LCP points out a number of indirect benefits derived from
the propose d project including th e following;
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• The reuse and development on an underutilized 3.5 acre industrial site.
• The creation oi 252 market-rat e residential units ($1.40/sq . ft. or $1045/unit average) adjacent to the
Oxford LRT station .
11.1s1 ?rl on Cou11cil's gu,,I 10 a11r,1c1 m ~w sa1es ,1nd use tax. and retain and exi)and exisllng jobs in lil c
Citv, 1111:_. prnposl:!d ,,i;reern l-!111 1s pre!.entt!d fo r C·ty Council's con!iideration . The a3reemen1
conlains the following t-lements :
I. The C,ly ,hall ,ebate 10 LCP Oxford, huildinR use la x revenues. dedved fro111 the imposition
uf the Cily's 3.5% use tax. that are actually collected hy the city and ;1mil11,wi.J lc to this
project. Reha1es shall nnt excP.ed 1he lesser ilmount of $260,000 or 55% of lht 6uild111g
Matcnal U)e Tax due on this p10J ecl.
2. The City shall rebate to LCP O,.:<ord, Fur1 :i1ure Fb:turP.3 and Eq11ipm1ml Use Tax derive d from
the imposition of the city's 3.5% Use Tax, that .ire ,1ct11,1lly collected by the City and
.1rtribult1blc to this project. Thi s rebate sh"ll nol cx c1.::cU the l~s!ier amorn1t of $17500 or
100% or llit Fumilu1~. FiXIUn!) arn.l E4uiµ111e111 U:,~ T dX Ol.Jt Oil llii~ pruj~C..L
.1. 1°11H \.lly shall w~ive building p,mnit fees a11rihut.1hlP m thi~ projert not 10 P.XCP.P.ci the lessPr
of 5U'Y.. or i44, 500
4. The C ity agrees 10 rec ·uco "F ees in Liem" tor Par ks. Th~ City shall waive "Fees in Lieu" for
Pi.lrfo, ~,tt.,iblrl ab !c to this projccl, not to ex c eed the le sser o{ 50% or $48,500.
FINANCIAL IMl'ACT
·1 he development will yie ld property tax to the Ci t\' ;,tan e stimat ed S2 I 3,880 over the first 10 1•ears.
Addi11cJ11 .1lly, the City would receive appro>.:iin.:itel·,' S305,500 in direct revenues Jssoci.:iled with use l;ixes,
permit fees, and the parks fee in lieu .
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Th e project will ~<,11ernte approximately 300 to 350 new resid ~n ts. The tarueted demographics of residents •
for the project is Gener.it ion Y, whi ch tend< to spend t11'!1e and cesources outside nf their domicile . These
residents will bring spending potential lo support retailers, restaurants, entertainment establishments, and
service providers in Englewood ano th~ surrounding ;irea. Accordins to ar, economic impact model
preprued by Development Re5earch Partners {Patty Silverstein) the ave rage hocsehold spends approximately
J(,.1 '¼J of its h o useh o ld income on t.ix,1ble purchases. With lhe estimated popl,lation of 350 and
Englewuuu ·s 11 1edia11 household i11u,111e of $44,056 lhe IJ1>tt!11tial ~ross taxable sales of SS .6 million results In
approximately $195,nno in local sales tax gen e,ared far rh e area annually
LIST OF ATTACHMENTS
Prupu!:i~U Resolulio 11
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