HomeMy WebLinkAbout2013 Resolution No. 065• RE SOI.UTI O 'N0 . (;!{_
SERIE S f'F 20 I J
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A RE SO L T ION APPRO\• ING 1\ REDEVEL OP MENT 1\SS ISTAN F. /\GREEM ENT \\II r H
BR OADBEL L LLC, FOR THE REDEV ELOPME NT OF 500 1 SOUTI I BROADWAY IN
EN GLEWO OD. OLORAD O.
WIIERE,\S, Lhc su ct:~i"ul attrnction nn d rclc nti vn o f hi gh qu niit y O(:\'cl opmcnt to the C il )' o r
En glcw ooJ p1ov idc s c i1p luy111c111 ,u1d h0 us illg u ppo111u11 11c!> 111 HI i111.:1c .. scd 1cv t:m1c fut ci t1 L(;'ll
scr,,ccri ancl is th ere fore an 11 npo rt :u1t publi c pu rpos e; and
WI l ER£1\S , it is imp rt an1 fo r th e C11 y of Englewood 10 ;i11r :1c 1 new f.n lcs ;i nd use lax reve nue
m 1t-:, '11y ;rnd rc ,n am .!O mpc1 11i ve with ot ht•r J,.,ca l gm•t·n 11n<.·11 1;; 111 crcatmg a ss i!>rnn c<.· fo r
u:d1:, el pmc nt o f ex 1st mg s pace in th e 'it y; a nd
,V~ER.f.1\S. Bmadb cll is th e cun-cm d~vl!l upcr 1hut has ti ~n·nm c1 to pur ch ase the ,·ocant
fo rm er La rry M1ll1•r \J 1.:.s;rn prop ert y ni 5001 South Bro nd,,a y :u1d has prnm1sed 10 m111 all y
dev el o p the site r,s n grocl!r}-:111 1.:lt Ncd rctntl s11c, and
WHEREA S, pu rs u n11 1 1c 1ht.: provisions o f Sec ti on 3 1 15 903, C .R.S .. the Cny h:i s th e
au th od ty to ncgot ia1c fo r 111ccnt1 ve pa ymen ts or credit Ii with tax payers w ~.11 cs t:,bli sh new
husin cs s fr,~i lities o r wh o exp n11d <!'<istin g bus in es s fo c1\i tics; nnd
WHEREA S. th er e has be en µre posed a Kcc!r vc loµmcnt .'\ssistm1 cc.:: Acrl'ct11c nt bc twc {:11 the
Cit)' :md Bronrlhcll I .I r:. n cnp y o ( wh i t:h 1-; auad1cfl hcrn1n :1s Exh ih11 "A '' ~n,I mcorpnr:1 1ctl
hc:r~m b y th is rcf'c rcncc: and
WI JERE/\ , pursuant 10 the Const ilU tio n of the State of Colorad o, and the Hom< Kule Clmn er
and ordrnauccs o l the Cit y o f l:.11 glewood1 the Cny ha s nu tho r11 y 1c-en ter 11110 th e proposed
Redevelopment Ass istan ce .f!\p.rccmen1 : a nd
WHERE AS. the Cit y Co uncil fin ds 111:u th e pro po si::d Red -:ve lopmt:nt Ass is,~mce Agr~t:rnc:nl is
co nsistent w11h and 111 fu rtheran ce of the bus mc...ss ass istan ce poli cies f 1hc City. i:ln d dc si1 c<; t~
app rove 1h~ Ab'Teem ent :md m:!hon ze us e·-a.·c 1ni on and 11n p!t'm~n1a 11o n.
'("';. ·11 1ERF FO RE. BE IT R.E LVE D 13\ Tllr-CIT Y COUNC Ii . OF THE CITY 0F
FN(';l F.WOOn , C:0 1 ,OR /\110, TH A r ·
S1:,,llllil.l, 'Il ic pro po ~i:J Rcd cvcl op11 1c111 A..;!\blu11 1.:c Agn:c1111;111 hctWl:c..:n lhc 'uy u f'
Englewoo d ;ind Broadbcll LL . is hc rc b) llpp ro \'cd, a co py r wlu ch 1s anachcd her et o as
Exh ib11 A .
ec 1i01J.l . n1c Mayo r is hcreh I au1honzcd 10 cxcc:u 1c the Ag1c c1m:11t u11 Uclta!f uf th e C uy
Cuu 1u.:i l uf 1l 1c Ci t v uf E11 1!lcw,..1 uU.
AJ)(Jl'TED AND APPROV ED this I" dny o f July, 20 1 J
shia A . Elli s , ll )' Clerk
I. Lo ucn ~hi a A. Elli ~. Ci ly l'lc1k ll11 tJ1c_;:11 y llf E111.dc,\10 0J, ( ).y1,1d1.,, he1cl.i yt c111f"y the
al,u ,c is a 11 uc CO i')' o f Reso luti o n \J o /(S , Sen cs of 2 I} / . /M
~~,r;Ej;rft"='-74::J
.oucrishia A . Ellis , Cny C le rk
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RED F.V F.I.OP MENT AS SIST CE AG REE M ENT FOR
BR OADll ELL LL C, IN TH]: CIT Y OF EK GLE IV OOD
TH.iS •\GR.EE MENT (' Agree ment") is ma de and entered ,mo as of the _____ da y of
-~~----· 2013, between the en Y 0 ~ E:-lliLEWOOD , a Co lorod o
hom·, cule m•JJJ.i c ipal corp ora tion (the "C ity"). and BR OAD BEI.L LLC' n Colorado Limit ed
Li abi lit y Co mpa.,y ("Broad bcll ").
\VHEREAS . lhc C1t y wishes to p1ov idc 1;c:rt.1i:1 Uu ::.il u.:::.~ ass1s1a11 cc in cnnnccti on with the
redeve lop ment o l the 3.7 acre sue fon ncrl ) occupied by Lari)' Mil le, Nissan ,ocatcd a t 5001
So mh Broad wa y in Englewood. Colomd o (the "Pro,1 cct"); and
\VHEREA S, Oroa dbe ll 1s th e current developer th at ha s a cun trnc t to purchase the Project :mo
i111 c11<ls tu initia ll y Jcvt:loµ the Proj ec t as ti groccry -,:mchorcd rct111 l s11 c: and
\VI IC llE . .\S, Oroad bc ll pl11ns to constnict n 27.000 square foo 1 S:11outs Farme r's Mar ket
(''Sproms") and an S,000 ~q uarc ruut t\dvi.1 11 .,;c Autt..1 P•11 t:-. ~•0 1 c . Brn ndb d l .ilso pl ans to de\'clop
an actd 1t1onal 15,000 squart! loo t reta il butld111g.
\VHERE AS, Rr(larl h!:1 1 plan , fnr th e proJcct 10 gen erate new sale s and t:s ... · ta.x reve nu e. ,1 nd
crea te new jvbs m the Cat y: and
\V H..E REAS, Ci ty Cou11ci l fi nds th e execu1ion ofth1s Ag ri..·cmcnt wil l serv e lU pruv 1Je hi.:nr::f!t
and advan ce th e publi c inte res t and wel fa re of the Cit)'.
NO\V , TH ERE FORE , in consi derat ion of the mu tual pro rmses sr t fort h hc l0w, 1hc· Ci ty ;rnd
Droadbc ll , agree as fo ll ows:
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Use Tax Rebates. llte C11 y sha ll re bate to l:lroadhe ll , ,u¾ o f the Bu 1ld mg Use Tax and
Use Tax on Furnit ure. F:xtur es . an d Equip me nt actuall y coll t.-cted , U1 an amount not 10
exceed S6S ,O OO, fro m 1he i11"1?os i11 on of 1h e C'ity's '\.5% l l,e Tax att rib utable 10 the
constru ction of the Proj ect
Sa les Tax Reba tes . The C it y sha ll rebat e to Broaclb cll . 50% of th e Sales Tax 11ctu,ll y
co llcc h!d , ma n amount nm to exceed St 82 ,000, fro m t..he impositmn ot 1J1e t 'if y's 3.)%
Ge nera l Sa\e, Tax nn reu-ii l s:i.les f'lccumng at the ProJ CC t (''Sales Tax t!s.,). Th e rebmc
period shall co mm c..-n cc upon the issuance of th e cc rt ifi c:11 c of o=cu pan cy fo r Sprou ts
The totitl Sulc!, Tax rebate ~1i ... 11 not cxcec<l•S 182,000 ,,or srlull Sales Taxe s be reb .itcd for
longer thnn three (3) year s.
Pavmcnt of Fu nds. 11,c Use Tax rchmc sha ll be paid within sixty (60 ) days fro m fu nds
rece ived fro m the Projec t for Us e Tax pa ym ent s. 11 1c Sa les T:ix rcb:ni:s sha ll be paid
mu 1ua lly f1u111 Sa les Ta>.es coll ected. No i111 ercs t s hall be paid on amounts su bject to
rebate
1 lsc ~fF11ncls Fu nds rchated purs uant to this Agreeme nt shall be used hy Broadbcll sole ly
fo r ob li gatio ns inc urr ed by Broa dbe ll fo r design and co ns tru ctio n of Trnffic s 1gn il l, medi rm
111 od dicat1011s1 in 1crs cc t1o n uli gmn cm for th e Projec t "lm pro vc mrnt s", all ofw h.1 ch shall be
pcrfo nned at Broadbc ll 's expense .
5. The Rehatcd Funds sboll not exceed the octu3I cos t of lmprovcment s.
6 . Em ire Agree ment. Thh iltslrUrueat sh all i;o ::cititutc tlic emirc agreement bc1wecn the Cit y
nnd Broa.dbell and supcr.icdcs an y prior agn.:crc cnts between the part ies an d their agents or
repre~entatives, all of which are me rged int o and re iooked by thi s Agreement with respect
to iLc; subject rnan ~r. Contac t info m1 ation is as f,. ;;ow~:
8.
Gregory D. Ham, Chief Opei~tu1g Office,
Broadbell LLC
C/0 Cadence Deve lopmcat L LC
8430 East Orchard Ro ad . Suite 43S0
Greenwood Village, CO 80 111
Tcnnina 1i on Thi s Agreement shall te rmi na te nn d bccor .c vo id and of no fo:-c:e or effect if
Broadbell bas not completed the pmJ c:.c t (as cvi denct:-.'"' • the 1s5 unnce o f a cert ifi cate o f
occupancy for SpmuL,) within tw o (2 ) year. follo"ong th e fu ll ex ecut ion of thi s
Agreement; or '>bou ld foi l to com ply with 11ny City code.
Su borrlinn t1on . The C1 ty'!i obh gar mn rmrs u;mt lO this Agree ment are su bordina te to the
Cit y'!i obligations for the rep aym ent of an y cunenl or future bonded indc btedne~s and arc
co ntingen t up oo. the ex isten ce of a surp lus in sa le.~ and use tax I e\'cnucs in exce ss of the
sa les nnd use 1:1.x revenues necessary 10 meet such e:us:ing or furure bo nd in deb tedness.
T h e City sha ll meet its obliga ti on!i und er this Agreemen t onl y after the Ci ty b.2.s sati sf. ·
all o the r oh Hgm ions wit h respect 10 1he use of sa les tax re venues for bonC rc;,aymen t
purposes. Fo r the purposes of this Agrcemeul, the te rms ''bonded indeblc:dncss/' "bonds ,"
aud simi lar terms d escribing lh c possi ble fonnn of indebtedness include all fo rms o f
ind e btedness that may be incu rred by tbe Ci ty, in cl uding, but aot limiled to , general
obligati on b ond s , re venue bonds. revenue anticipation notes, tax incremt.'Tlt r.otes, tax
ir.crcmect bonds, and all other fo:1ns of contractu al ind eb 1e<lne.-.s uf wha ts oe ver naturi; tha t
is in nuy w ay secured or co llalcrn ll.7..ed by sole s and use ta.l revenues o f the City .
9 . Annual Appro priation. Nolhing in this Agreement shall be deemed or construed as
cr::.at ing a multiple fi scal year obligation 011 the part of the City within the meaning of
Colorad o Constituti on Art ic le X, Sec tion 20 , or any other const i1uti on al or starut ory
provision, a.ud the City 's obligations he rc.."U.Jlder are expressly co ndi tion.ii upon annual
ap propriation by the City Council , in it~ so le discreti on Rro nri hell und erst and!-i and
•~cos th a t an y d ec ision of Cuy Cow1cil to no, appropria te funds for payment shall he
withoul pcnnlty or reeo w-sc to the City and, fW1hc:r, sh.e ll not affcc1, im pair, or in va lida te
any of the rema i.JUJlg ~cnm; or provisions of thi s Agree□ent .
l 0 . GovcrniggJ~.~.w.;~. nlis: Agreement slui ll be gov erned and co n.c;trued m a:c cordJnce
wit h t11c la ws of the State o f Co lorado. This Agrccmcm shall be subject to, w1d construed
in stri ct accordance v.ith the Ci ty of Englewood City Charter and the Cit y ofEnglt!wood
M11ni c1p fll Code . ln th e even t of a di spute co ncemins any prov ision of thi s Agreement ,
th e panics agree th.at pri or to commencing any hti gatio:i ; they sh.'\11 firs t engage in a good
fo ilh tbe services o fu mut uall y 1!cccp table, qua lified, an d experienced mc dia1 or or panel
of mcdiotors fo r the purpose of reso lving such dispute. In the event suc h d is put e is oo t
full y reso lved by med iation or ot herwise withi n 60 doys 3f\cr n request fo: mcd ia.1 io 11 by
either pan-y, then Ctlh cr part y ma y co mme nce legal proceedings regarding L~e dispu te.
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11ic venue fo r ,my law sull co nccmi.ng thi s a grc;ernt!11 l shuJI be i11 the Dist ri ct Cow, fo r
Ampahoc Co umy , Col~,•~o
!&ill_<;hall tnge . f;,rr ,,. The C:1 ry shall ha ve no obli gation to make any rehal c r •ymc'Tl t
he reund er ch1.,:t. , the •r•-,rl ency 01 any Jegal c,hall cnge to l.}j::, Agreement. The f,dl1 ies
coven i-•v ,t\ r .. ~~-"' will initi ate :tn y legal chD!J engc to the validi 1y or :nforcco bilit y 01
1h1 5 A~.., ... ,.,.!'··., d;~, ~-~t any challen ge by an y 1lurd part y. An y fun d& appro pri uled for
pa ymt:n t u. ,t.r 1 • :!i Agreement shnll be esc rowed i.n a sep arate Ci ty .:cco unt in the event
there 1s a lcg u: '"'··· .... eng· to th is Agrec:mcnt.
~...Jlrn!. l11ls Ajrecmt•Jt is per sonal 10 Broa dbe ll . Broadh cll may not ass ign any of
th e obl :gatio ns , be nefit s o :-provisions o f the Agreement in whole or in un y part w i1 ho u1
the ex pressed wri tt en authori zation of the City Council. Any purponed a:;s ig.i uncnt,
tr.msfc r, pla.l gc, o r c 1:c u11 1bran~ made without such priJ r wri tten autho ri za tion sha ll be
voi d.
Mlll.i!il V cnt ure . Nothing in thi s Agreement is in tended or shall be construed to create a
joi n! ven ture het'.l.'ccn 1h e Cit y :uid Broadbell ru1d th e City shall never be liab le or
re spo nsible fo r any ,:ebt or oblig~t ion ofBroad bell LLC, a Co lorn do corp ora tion .
BROADB E1?t LLC
a CQ!o, · ·
CITY OF EN GLEWOOD
-✓
By: / ~..l..<'+----!1-----l+I------
ATrEST:
By:------------
Randy P. Penn, Ma yo r
ATTEST·
Lou crishin A. Ell is, City Clerk
COUNCI L COMMU N ICi TI ON •~--~----.------~
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D ATE :
Julyl ,20 13
INITIArf O RV :
C o 111rn L1mty O e\'elop,n e nt
AGFNOA JTFM :
1 1 C II
~URJF CT:
ll roa d bcll l.1.C Red eve lo pm e n t
;\::,)i::,l d llLC t\g ·rc1, 11.::n t
STM I-;o u wn ,
A l,111 \1 l h tc, Co m munity Dev lo p rn c nl D irec t o r
COUN CIi C.OA I AND l'N EV I OI JS COUNCIi ACT ION:
Ci ty Cou nci l d isc u~)t:d th e µ1u p L.::,1:J Rc:1...lt:ve lup1:11.:nt t\::,::,i:,lc1 11 Lt: t\g1e ~111 e 11t <1 '. tht: Ju 11t:: 3. 20 13 ,rnd j1 m e
17, 20 I _1 Exe c ut ive Sess io ns w it h consensus to b n ng the A gree m e nt ro rwa rd ior con s1cierat 1on at J11
up1...o ming C 11 ~, C,J un c1I mt.• 1,ng
Englewood'~ Comp reh ensi ve Pl.m ~l.1 IE>'-;, go.i i o f co n11 n 11111 1y rt:v1t .1liz ,1 11on .1nd in<"re.,sed h o usin g
o ppo 1t t 1rn t 1es r he R l:'t ,11 ! 1\na lysis ,ind S1t f• D l~velo p 111 ..:n 1 A::i st.· ... sn 1l~nt ::,pb 1f1c,1 ll v 1d e 111 if1b t l ,t> f o 11,1e 1 L.i rl)
M il ler Niss a n propert y as a 1e ta11 d eve l o pmen t o ppommi 1v.
ll FCOMMEN DEO ,\(TI O N :
Sl(tH l t.!t.u 111 111 1::11d::i thttl uU1 1d l c1 d u p1 til t' t1 lta d 1tU R1:~u l u 1iu 11 ..;u th o riLir 1g 1h e C iry o f Eng le w ood tu e m er
1n tc an ag r em en 1 v:11 h Ih e developers ror the form er t ;m y I\ ull er N issan pro perty, Ca d ence l Jpital
Investme n ts , d.b .,1 . Broad ell LLC. Th e p ro posed 11<e o l f un ds w,11 su p po 1l infr ast ruc tu re re l>t e d lo a
c;.i gn,1 li1 p(i intpr,ectinn 1k11 w i ll h,, nr>cr.o ,;,;,1ry t n fo c iht,11 lr.1ff1c ~Pn er.1t ed by th e d Pve l o fJm en t
8,'CKG ROUND, ANALYS I S, AND ALTE NNATI Vt S IUENIIFIH):
C ... Je nce Oeve lo pm en l, LLC is 1m rf ?r r o nlrrtrt 10 r 11 rc h ;1c;.p th P v .1 c ,n 1 I irry tvhll Pr N ii;c;.,1n (I i'v\N }
p roperl y JI 500 1 Sou :h Broa dwJy. An ince ntive J.SrCt•rn c n t '"':ll s u ppor t th e lr,:m s form J lio n fr o m
an :w l o -onented site to c1 g 10Ct'l)·t'l tK l 10 1t d rt t,1il $1t t". f'i.;:11d i11 • C u u11dl', d L l1 u11 u 11 1l 1t:: 1t1 L +..'11 t1 v e
1gr e m en t, C;iden ce 1s expec ted tu clo se on pu rcl1 ;1se o f th e pr op ert y on l uly U. 101 J .
Proiecl Overv iew
Th e p ropo sed cle vel o pmen t is o n a µM cel o f ap pro xima tely 3 . 7 i\Cres and invo lve~ th e c o nstru c ti on
of a 17 ,00 0 square foul Sp r o u ts Far mers M ark et Jnd cH"I 8 ,075 sq u.1r e fo o l Advan ce A u i o Part s
re tail sl ore. All r a p o rti o n o· ar e ..:is1ing bu ild in g will b e d em o lis h e d to ,iccommo d at e a
signali z ed J ccess o n Broad ,,a y, resultin g in ~afer traffic ci rc ula ti o n. The r~1aain cl er o f 1h e si te will
accommo d ate .:1 p p ro :-.im ~11c ly 8,600 sq u JrC fee t of th is spJ CC, w hic h is be in g ma rketed 10 b o th
restau ro nt and r ettiil users. Th is proJe c t cr\rri es a n estu nat d d ev elo p rn en 1 LOSI o f app ,o:-.ima td y
$1 1,0 0 0,000 .
Sp ro u ts l"ciri n rr. M._)rk c t h,1s corn rni 11 c d to th e p ro jec t ,111cl 1!, ,1 ~1gnif1c,:in 1 dnver 111 the desi gn of 1h e
prop os d si te pl:m . Sp ro u ts f;ume rs M;,rke t g,os; arrnua l ,evenu(lS arc p1 01ec1e d ,It ;ipprox 1m ,ll e ly
S20 millio n 111 th e fir st fu ll yea r o l o p erd l ion, 01 w hi ch ,,pproxi m,:-it el.,• 20 pr:rce nl o r S,4 m illion is
ta'Cable . ade n e rur lh cr p, J c l r. gro s annu:11 sa le!t rrO'll 1be re11 1,1i ninr, 16.D00 squa re fee l o t
rc ti11I o n 1l 1c ~i l c, 111 th sa m e tim e fr ,une, at $3 85 ,ni l iu n. CJdence pr Je ts 101~11 Sitles tav
revenues at 527 5,000 tr n m 1h r.i develo pmen 1 in th P ll rc.t fu ll v .t r n1 n rp;,1 1,on I nr.l1 r\nr111 .:1 I c;;-i jpc;
i ix r vem1e j1;, es ltnn t C 10 inc r e,1se to 51 :-'h,OUU ,1n n uc1 lly h~ 1b ro Pnrl , yPa r thrr>e
FINA ,\JCl /\l IMl'/\Cf:
The f in anc,JI Ass 1stan (e ,\gr tt111 e n t in volve> a 5:.50.000 111 le11 th ~ 10 ·eir11liww C ctd enu, tu r t.u~b re ,ti ed
tu l l 1~ lldi'ii L ~ig11dl /i 111t:'1)t:L li u 11 c1 h ~1111 1!.!11 t un 1:3 ru JU w,w l hi:: J)~lt't:lllt n l. IJ J~t:J u 11 th t: ii1fu rr 11dliu11
P'O\ill~d i11 lli •· pru lv 1111.i p rt;:"IL'11h:d I,)' C:.1d1.:11u• µ1u\id c) fu1 1h c t.l,.ih: { l,uildi ng t1 )c ta.x ,111d 11st: t,1\t:!i
CJ i .1111i ttJ1c, lt\tu it:s ,rncf l .. q l11p111t"nl ctnd ivr ~..ti c) 1!3(. r~t Ic ons oftn·: ag1c1:11lCll l ,u e cl ) follows .
I ) Rebr.11 c S01
}', of .J c iu.il Ouil d 1ng U <ic T.t>. ;rnd furrntu re, 11...;tl,tt!:, rn d Cq"J1p m e 111 use t~x coll ec ted,
11 0 1 to cxcrcd Sti 8. 00
J Rd"~Hc 50'1·. rn ,1 c1 t1.1I ::..1k•~ t ,Y": coll C"1..t~d, 'lfJt to c,<...cc d )I 12,000 o, , )'l'.-.rs w l11che"e' 111 c :.,
lll'S l
3) u~e 0 1 1u11d~ 1s 111 11 11 d 10 th e rr;;fiic s1g11al, m ecll.111 111 od11 1c,111 ons, ,1nd •n t erse ho n ah gn n1 c 11 t
-l J R,.:b ;it c sh,1II not e-.:ceed :he act L1 ,1I cost 01 i111 p 1ov mcnts
~11;, cl o n the d ,•el oper's pro l or111,1, ,eh~,t~s 10 1al,ng . "J)O,(!()fJ wo.1kl occur <;om et1111 e 111 111e ~,..,r o ncl 1ull
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YP Jr o 1 o pP1a 11 n n to r ~p ro u1 1, f h PrPc1 1ter, JII ~al r ~ r,1x rr•,·e n11r wnt ,ld ,l(Cr l l rl 10 1!1P C 11)1 An11 11:il 1;,;1 lpo:; 1.1x •
~PvPn1 1P ,,_ pmJPClrd In rt" c h ) ~ 'i lJ,I .II U I h~ 1h1" P11rl nf yfl,•r ri, r·
LIST OF /\TT/\CHME 'TS:
Re ~u1u tiun
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