HomeMy WebLinkAbout2013 Resolution No. 040RESOLUTION NO. Jfo
SERIESU~2Ul3 --
A RF.SOI .IJTION APPROVING AMF.NDMENT 1'0. I TO THF. REDF.VF.I.OPMENT
ASSISTANCE AGREEMINT WITH HAMPDEN BROADWAY, LLC, FOR THE
RllDEVELOPMENT OF 3695 SOUTI I LINCOLN STREIIT IN ENGLEWOOD, COLORADO .
WHEIU.AS , the successful attraction and retention of high quality development to the City of
Englewood provides empl<'ymcnl and housing opponunities and increased revenue for citizen
services and is therefore an imponaat puhlie J>Urpose; and
WHEREAS, it i, important for the City of Englewood to anrect new sales and use tax revenue
in the City illld remain competitive with other local governments in creating assistance for
redevelopment of ex1stu,g space in the City; and
WHEREAS, Hampden Broadway Holdings plans to dcmoiish the former Flood Middle School
and build an apartment complex; and
WHEREAS , pursuant 10 the provisions of Section 31-15-903, C.R.S ., the City has the
authority 10 nego11a1e for incentive payments or credits with taxpayers "'ho establish new
business facilities or who expand existing business facilities; and
WHl!REAS , City Council •pproved a Redevelopment A.<sistancc Agreement between the City
and Hampden Broadway , LLC, by the passage of Resolu•.ion No . 2, Series 2013; and
WHEREAS, Jased on new eosl estimates for public improvements on the site, Hampden
Broadway, LLC . has asked for a modification of the amount of rebate lo be approved ; and
WHEREAS, the proposed amendment removes the "lesser of' cap as 10 the acn 1a l cost of
relocoting the City Ditch .
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL Of THE CITY 01'
ENGLEWOOD, COLORADO, THAT :
Sectjon I . The proposed Amendment No. I , 10 the Rcdevclopmcnl Assistance Agr~emcnl
between the City of Englewood and Hampden Broadway, LLC . is hereby nsproved . a copy of
which is atta1. t!d hereto as Exhibit A.
~-The Mayor is hereby auth •rized 10 execute the Agreement on behalf of the City
Council of the City of Englewood .
ADOPTED AND APPROVED this 15th day of April, 2013 .
ATTEST :~
uc . lua A. Ellis, City Clerk
I, I oucri,hia A. Elhs, Cil y Clerk for Jhp_Cily of l'.11Blewood, Co lnrarto , herehy cel1ify Che
a hove is A m,e copy of Resolucioo No . ~ Serie.• of 2013 •
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AMENDMENT NO, J TO Tm IW>EVELOf!MENT ASSISTANCE AGREIMENT
FOR llAMPDEN BROADWAY, LLC, JN TRI CITY OF ENGLEWOOD.
THIS AGREEMENT ("Agreement•~. amendlns a prior •8Je'!llft"II~ is made 811d entered into
as of the __ day of_...,.. __ ,.., 2013, betweei, ihe CJTY OF BNOLBWOOD, a
Colmdo ~ rule mllllicipal co,poration (the "City"), 111d HAMPDBN BROADWAY, I.LC, 1
Colarado limited liability corporatioil .
WBBREAS, the City wubes to provide certain buainess amsamce in conn=tion with the
former Plood Middle School rite redcvelopmenl of approx.inlllely 4.56 -localed at South
Broadway and IC&yon Avcuue also known u 3695 South Lincoln Slreel. iD Englewood,
Colorado (tbe project); and
WHERBAS, &mpda Bn>adway, LLC plam to pmabasa and cau,e the NldeveloplllClll of the
property located at 369S Solllh Linooln Street, Ei,glewood, CO 80113 into an apanmcot project;
1111d
WHEllBAS, it is BD!icipatcd lhat the project will scncntc property l8X and revenue. 1111.d
create new bowing 111d usocialed improvaments in the Citr, to g~ new sales and 111e tax
raveDU, and to create new jobs in tbe City; and
WHEREAS, the Englewood City Collllcil aurhomed the Redovelopmmt Aasislonce
~ by dlepassaao ofllecolulion No . 2, Seri• of2013; and
WHEREAS, lhe Parties wiah lo c:wiJ'y the IIIIIOIIIII ofUao Tax nbale; 1111d
WHEREAS, City Cotmcil liDda the exccllliClll oflhis Apeemmt will serve to provide a public:
beaelil 111111 adYaDee i» public imnst and welfAle ofdle City.
NOW, nmR.EFORE, ill consideration of the 11111111Al promises set fot1h below, Ibo City and
Haq,clm B!Oldway, U.C IIIJIIIII u follows:
1. uae Tu Rebates . 1bc City sba1I rcblle to Hampdm Broadway, u.c, building uae 111
.rev01111111, derived from the Imposition of the City's 3.5% use tu. lbat arc IICtllllly collcctcd
by the City and allribulable to this p!Ojcct. R.ebatcuball not axceed $170,000. This rebarc
is to ISlisl in the acccsary relocation of the City Dit.ch across the subject property and
other public improvcmads . Tba City Dirdt lushl-of-Way vacation and JPD1 of a new
Ript-of-Way fflllSI be approved by the Water and Sewer Board 11111 City Comtcil, wbiob
approval process requires approximately 1ix weeks to complete. The collSb'uCllon of the
~ City Dilllh will be pumlllll to Cily approved plans 11111 spccUlcatiom.
0,.'3SII\IClion may lake place 11 Ill)' lime with IILe tie-1111 or recomieclion limited to 48
llt,,m 011 an approved dale. Docwnealation and City approval of the completed City Ditch
awl doc:umemation of the actual cost of relocation is requin,d prior to the p!OCC$$inl of the
requcrt for the rebate ofbuildina use Wt.
10'43 AM 4'9/20ll 1
2, Paymept o[f\mds, The bwldlng 1111 tu rebate abaU be paid by th• Chy in a sm&I•
paymeot 1111d ahall be made etltr recolpl of payme,111 of bulldina IIIO tax in 1111 IIIIOWII
equal to or in excess of lho n,bllle amoUDL 'l"ne City sbaU pay no inlorcat on Ibo amo11111
wbjeo1 to rebate,
3. Ug oflfupds, F1111da sd>111ed purauant to this Agrumcnt wll be uaed by Hampdca
Broadway, LLC solely to Rimbune Illllllpdca Btoadway, LLC for the costs incurrod far
lhe relocation of tho City Ditch and other public implOVCIIICola , llcbata aball aot eacccd
$170,000 .
4 . The City aaieca to rcdw:e the parkdcdicalion £co.in-li1111 Crom $20,000 to $10,000 per acre
of lhe pllic 1alld dedication requinm,enl. All raquircd by 1hr ".:lty's Unified Developmcat
Cock, lbe ac:tua.l amo1111t duo will be basc,l an the total numbe:-of dwelling wllll X I .8 X
.0107 X $10,000. Far owuplc, based 011310 llllits, the lllllldedication requittmmt ts
5.9706 ams, which at $10,000 por acre would total $59,706.
5, The City aan,os ta utilize Its cttldit fiom Xcel Energy foe relocation and/or undergrounding
a( Xc:rJ overhead utlllty cllatributlon llncs locatocl on the property, estimated 81 S300,000.
The Xcel qrecimc:nt provldls only for utility line, owned by Xcel. Hampden Broadway,
UC is n:spom!blc for the coll of ieloc:atlcn of au other lines. Hampden -Broadway, LLC
wiU coordiutc the Xcel Wldcrpoundmi throqh the City's PllbUe Wom: Department.
6. Prior to a~ a bulldlna-porml~ Hampdon Broadway,LLCwilldeposit SIO,OOOin
eacrow with the City Finance Departmc:nr for the coll of a.,soc!ated pJOjcct related traffic
lmproveinau.s at tho BroadwayllCenyon lalmeclion 18 deemcil n-,y by the City.
Thcscflmdl wll1 remain In escrowwllh Ilic City foraperindoftwo,yean after 1,1_ of
the cm111cato of occupancy or 81 such time 18 the devdopmtnt is 90% occupied,
wlllcbevcr comes lint. -Al that tinu,, tho City will refund any amoUDI not obliptod or
axperuled by the City for auch tRffic inlplovemenU .
1. Entire Atpp;mmt-This instrument ah.all CODllitutc tbc entire apemcn1 between the City
and H.unpdca Broadway, LLC IDd 111p1111oclea ony prior ,aroeme,su bltw-tbc parties
and their qenll or repres1111tativcs, all ofwblch ue mqed into wl IC\IObc! by 1bit
Agreemeal with respect to 11s subject matter. Comact infol1Dlliao is ac follows:
Edward Baniocdu, Co-Maaaer
Thomas Bradbury, Jr., Co-Mll!lger
Hampdmi Broadway, LLC
4725 Solllh Monaco Street, Suite lOS
Denver, CO 80237
Mike Flallcrty, Deputy City Manager
Alan White, Director of Commllllity DevoioplDCIII
1000 Eoalowood Parkway
Englewood, CO 80110
8. Tgmjnatjon, This Agreemc:DI shall tcrmina1c and ,ecomo void 1111d ofno fon:cor effect
upon lhc City if; by December 31, 2015, HD;,den Broadway, LLC has nol co1nplc:ted the
project (aa eviclcaccd by the issuance of I ccrtifica10 of occ:upancy); or should Hampdca
Broadway, LLC fail, after a thiny day Nollcc of Violation. to comply with any City code.
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9. iJmqrdjnatign . The City's obliplions pursuam to Ibis ~t are subordinate to tho
City's obliptiom for the repayment of any Clll'Nlll or future bonded indebtedneu 11111 are
continpm upon tho exiatencc of a surplus in saleo and 111e tax reveauoa in COICCIS of tllc
sales and 1110 tax revCDUC& ncceassry IO meet such exialing or futlll'o bond illdcblcdncss .
The City 1hall meet it! obllptlons 1111der lhls A&n,c:mc:Dt Ollly after the City bas 111\isfied
all other ~bllptions with respect IO the IIIO of &ales 111d USC tax revenues 'for bond
repaymenl PIIJllOSel. For the purposes of this Asreemeot. the u:rma 'bonded
indebtedne11," "bonds,• and similar ierms describing the possible fonns of illdebtedneaa
include all forms ofmdebtednerl that QIIY boioewnd bythc City, iilcludlna, ht not
limited to, genonl obligation bonds, revenue bonds, ftlYCll1UO 1111ticipation 1101e,., tax
increment notes, tax ID0RIIIICDI bonds, 1111d all other Corms of collll'IICl1lal indebtedness vf
wbataoever ruuure tbat is in any way aecured or collatenilized by sales and we tax
rew:nucs of the City.
I 0. AIIIP., 2llllllialilm. Nolhing in thi1 Aaro,,me,,t lhall be deomcd or consm,ed as
arca1izia • multiple 5!1Cal. year obligation on tho part of the Ci1y within the meaning of
Coloiado Comtitulion Article X. Section 20, or any olhcr constitutional or statutory
pJOVlalon, and the Cltr 's olillpllons hcn:undcr an: expressly coodiwmal up011 mnua1
appropriation by the City Council,.•. ilS sole~on. RmlpdcnBroadway, LLC
WM!erstands and asrees that any dec.1100 of City Council to not appropiiatc tbnds ior
~yment shall be without penalty or recourae lo the City and, further, ihaU not nffl!CI,
impair, orinYllidate any oflheremaiDiag tenm or provisions ofthiaAsreement.
11 . Oowmjpg Law: Vcnuc. This AarCCIIIClll lhall be governed and CODSll'lled in acco~
with the laws oflhe SWo of Colorado. This Agr=um lhall be subject 10, and CODS11\1ed
in strict acconlllloc with the City of l!Dalewcod City Chater and Ibo City of E.nglewcod
Mllllicipal Code. Ill the eveal of a clispllle conceniina any provii!OII of tliis Aareemail,
the parties agree thst prior to commmciDa 111Y litipticm; the) lhall first enpac, in aood
faith, Iha 1erw:a of a mutmlly acceptable, quali1ied, and e,,periellced ~• or panel
ofmediaton for~-~~~fi:esolW!IIIICh~te. llltbeeventsucq _~_is11ot
fully rc&0lvod by meiliatio11 or otherwise witbin 60 days after a request ·for mcdialion by
ellbcr party, thm cllberputy may co-legal proc,eedlnp regudlllg the dispute.
The YCIIIIC for 1111}' laWIUl.t CODCeniing illis aa,eemcm lhall be in !he District Court for
Ampaboc CoUDIY, Coloradl>.
12 . Lem ChoHppp· iifcrpw. Tbe City aliali have no obliption to mab uy rebate payment
bcn:undc:r dwmg the pe:Ddcncy o! any lop! challenge to lhia Agrccmcm. The parties
i:ovCIIIIII 1h11 neither will initiate any lop! challenge to the validity or en!on:cability of
this Apemmt against any cballCDgc by any lbiJd party. Any fimds approp,-iatcd for
pa)'IIICIII under this Agreement iball be escrowed in a separate City account in the ovent
there L• a lepl challenge lo lhl, Agreement.
13 . ~ Thi• Aa,eemeni is personal to Hampden Bmadway, UC and Hampden
Broadwa>~ LLC may not usign 111y of the obllptlons, bencfiis or provisions of lhe
Ap:ment ill whole or in any part withoUI Iha upras written authoriz.ation of the City
CoUDCil. Any purported -ip:mm:, tn,,,sfcr, pledge, or =Ullllmmce mad: v•·,thoUI aucll
prior wrinen authorization shall be void .
I 0:43 AM 411120ll 3
14. Nn Jgfpl YIDIYJ!. Notbina in this~ ii lntendet'. or 1ba11 be CODllnll!d to cnmie a
Join: vmmrc bclween th6 City and Banl>drn Broadway , U.C. The City lhall nover be
Uable or .nspoosible for 11111' debt or obUpn of Hamp( en llroedway, !.LC.
HAMPDEN BROADWAY, LLC
~: Sol,;,1.C.,..c ~e.,-s, UL
By: -~~"-r./v/~
Tbomu H. Bradbury, Jr. Co-M.an.,..-
STATE OPC9LORADO
COUNTY OF l) t"Ylt.lr)l.
Tho €oregoing iflltnlnH!nl .,.,.. oclcnowl::dgcd before me tbia J.t day of J1 /, ·L. •
201!, by Thomas JL Bndl,my, Jc, u Co-Manaa=ffBampdrn Bmadway,
~ s .. 1r.1c.:i,-~ r ... .....,..,1"5 ,w..c a..~ 1-1---~.,.
My oommlsdan cxpirm: 2. DI
HUGH E, SMITH
NOTARV PUBUC
STATE OF COLO!tADQ.
NOTARY ID 2DCl840SS1,-,
11'1 cmDIIOll!Xl'IN:llll'TEl&II 1',, ZOii
J0:4lAMfflllOll
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cotJNn · oF b e:(lvd..
Tb.<: roreaome imtrummt WIS acknowledged bel'are me !hi,~ day of A--il 1, ·,
_ ·-• 20J:J by EdwardBIIIOCChl, u ~M-,er,'{'fHampd= Broadway,'itF" ---
My commwioa a,n: oit/:z-1 !ze/b
tiUOH ·E. SMITH
HOrARV PU8UC
STATE ·OF COl.;OfW)O
NOTARY ID ZOIINIS3111
IW 5of.,it,e,1!1£ i?l.t~,U ,, ~ 11'!'1w'4tt..,_
IIY COIMll8IONEXPIIIII ..... R 21, »11
CnY OF ENGLEWOOD
By: ________ _
Randy P. PC111l, Mayor
ATTEST:
Low:rilbia A. E1lit, Cicy Clede
10:41 AM 4/9/2013 5
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COUNCIL COMMUNICATION
Oale: Agenda llem: Suhject:
11 C iii Amendment to ~lood Middle School
April 1 5, 2013 Redeveloµment Assistan~e Ag reeme nt
Initiated By: Slaff Source:
City Manager's Ofi,ce Darren Hollingsworlh, Economic Developmenl
Manager
COUNCIL GOAL AND PREVIOUS COUNCIL ACTION
Council approved a rewlution on Jam,ary 7, 2013 authorizing the Flood ,.,..tddle Scho ol Rede1 ·elopment
Assistance Agreement. During an Executiv e Session on March 25, City Council discussed the proposed
amendment and asked staff to bring i: forward for consideriltion.
RECOMMENDED ACTION
5taff rec:nmmenrls that C:our.c.i l apprnvP. the atlar.hed rP.sol11Iinn amending th e •w•ement with H ,1 mpdP.n
Broadway, LLC for the City to provide assi 1tance to support redevelopment of the former Flood Middle
Sc;huol site.
The amendment reO ec ts a wo,ding change in th~ Building Us,• Tax Rebate section of the agreement.
BACKGROUND, ANAL '\'SIS, AND Al TERNATIVES IDFNTIFIED
Earlier thi s year, City Council approved a Financial Assistance Agreement with Hampden Broadway, LLC.
developers of the Flood Middle School site . The devel opers receruly approached the City to request a
change in the wordinp related to the Building Use Tax Rebate .
The ,,r,reement contains the followinR wordi,111 chanRe:
1. The City shall reba te to Hampden Broadway , LL C th ose use tax revenues derived from the City's
3.5% general use tax that are actually attrlbuIable t~ this project. Rebates shall not exceed
$170,000 6f-lhe-aett1al east iAet,meEI ier reloeal ioA or 11,e Ci~. Qilek, ~iel,e er ameijAI Is lo .. e,.
FINANCIAL IMPACT
This amendment will not chan ge the financial impact noleo , · •vio usly,
UST Of ATTACHMENTS
Proposed Resolution