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HomeMy WebLinkAbout2011 Ordinance No. 010ORDINANCE NO . _m SC:H..IES UF 2U 11 BY A "ufHORlT Y COUNCIL BILL NO . 11 l'NTRODUCED BY CO UNCIL M EMBER WILSON AN ORDLNANCE CONS ENT l'NG TO T HE FIRS T A.Iv!EN D M ENT TO DEC L ARA T ION OF COVENANTS [M POS l'N G AND IMPLEM ENTING T HE RI VER POINT PUB LI C l'M PROV EMENT FE E (''PU' Covcnam Ame ndment "). WH EREAS , th e Cit y of Englewoo d 0"11S app roximately 54.5 acres that are leased to the S heridan Re<lcve1L,p111 e111 A ~c 11cy (the: "Agency") pursuant to a Gro und Lease da ted No vember 27. 20 06; and WHEREA S, th e lanrl tl 1at is the subjec t of the Ground Leas e is pan of the Rive r Po in t at Sheri da n co m:n erci ill a1ea that 1s being deve loped by \V ei ngartcn Mi ller Sherida n Ll .. C, e Colora do !united linb ili1 y co mpnn y (''\V?vt S''), the Ground Lease is for an in..i ti:i l 20 year tcnn, with thr c:c 20- yca r re new al opti ons; aid WHEREAS, as consideration for the Gro un d Lea se , :he Agen cy paid re:ll of$4,190,000 fo r the initia l 20-yea r tenn, wi ;h lessl'r amo unl s of re nt to be pa id for the en suing three 20.year tt.:nn s, and , si nce the land covered by the Gro wid Lease was pa:t o f the origin::il Eng lewood Go l f Cou rse-, th e Agency egre ed to re de sign and rebuild. at it s ex pe nse, .1 port io n of th e Englewoo d G ol f Course Com p lex ; and \VH.ERE AS, in 2007 1 th e Agency iss ue ... ,on ds to fln ance a port ion oftbe Ri ver Po int at Sherid an deve lopnent as :in urban renewt1 l projc-ct und er 1he r.olorarlo l irhan Renewal l 11w ; and WHE REAS . in urck1 whelp pay tl,c Agency's bo nd s a nd to pay the city of Shen da n fo r it s added costs in nrovicling municipa l se rvices to Rive r Po lnt at Sh eridan, \\'lvl S, with the approva l of the Agency, ru:orded toe Decl ara tion of Cove nan ts lm pos iJ 1g an d lmplem ent in g the Rive r Po mt P11h lic Improvement Fee on Fehm:iry 20, 200 7 (the 'Dec laration"). whic h 1mp O$cd a onc •p e rce nt Publi c Imp rove ment Fee (the "P IF ") on sal es of goo ds an d se rv ices in Ri ver Poi nt at She ridan ; and \H[EREA S, the Dcc larat ,on cov ers the pr opcny th at is the subjec t of th e Ground Le ase and also tbe prope n y thnt 1s owned by WMS and by the hrgcr retai lers m K1 ve r Point at Sher idan ; and \VH EREA S, by th e tcnns of the Declarat ion. th e PIF wil l end . as to th e prope rt y that lS th e subjcc 1 of 1h c Gro"J 11d Lco sc, whe n th e Ground Lea se e nds, ~,o as not to burden the property o f lh e Cit y of Eng lewood wh en con trol o f that pro pert y is return ed to the City at the end of the Ground Lease; NOW, THEREl'ORE, DE IT ORDAINED BY T H E C ITY CO UNC IL OF THE CITY OF ENGLEWOOD. COLORADO, AS FO LLOWS 9bv S1.:ct inn I. Th e C ity Cou n1.:1l of tlu .. C it y of Englewood. Colorn do hcrchy consc ut s 10 the PLF ·'First ,\m~n l nu.:m 10 D::clarnt1on uf Covt:.nam~ Imposing and lm plcnu~11 ti11g 1hc.:: t<...1vc1 l'o int Publi c l111 provc1m:11 1 1-'cc··. atta ched hereto .1 s All ac hmc nt I, fCl r and on beh alf o f lhe Cuy o f E11i;lewood, Cn lor;1 cl o . Sect ion 2. The M .1yt 1f is :1uthonztxl 10 ,ign the i;t:c.:o nd :11 ncn d n1e 11 1 o f 1he "f.ir,._, /\nu:11 d111c11 1 in Dcdarat1 on ofCuvc11:11n s lmpn si ng rin d lin plc mc:ui11g the Ri·.,cr Po111l Puhlk linprc1vi.:mc111 Fee" for ;1 1u\ l•II l 11.:l 1a lf (Ir 11 1..: Cit y ~J r E1 1gkwuud , Cu l~11 m.lo . lmroc\u ccJ , rca<l in ful l. and pass ed on lirst rea d111 g on the 22 nd day of February, 201 1 Pub lished by T 1t le as ,, Bill rm an Ord iaanct: in th e C11 y·s 0Eic1:1\ news pa pe r on the 25 th cla y 11 \' l'cb ruary , 20 1 I. Pu h!ishcd as a Di ll f,Jr nn nJ in :mcc o n the C il y' s o ff,cia l wcb s11 c bc g11 1J1 i1 1g 011 ll n: ~J1 d ll.Jy ur Fch111 ary, 2 0 1 I ro r thirt y IJ O) days R~a d hy 11tl t.! .1 ml passed on fin:il n.:;1cl1 ng 0 11 t lic 7•h d.iy ,,f' Man:11 . 20 11. l'ubh :1hcrl hy tit le i111h c C11 y ·r: c,fn c 1:d 11cw::p;1pcr a:: O rcli n:-incc-No ./l<sc nes o f 2011 , o n til e I Ith cl.1y of Ma1 ch, 20 1 I Puh l1shcd hy tlll c on lh c Cny ·s off1 c 1a l webs ite bcg 111,1 mg 011 th e 9th dny o l :vi arch, 201 1 fo r 1h 1rt y (JO) da ys . J,1111t~ K . Woudwmd, Mayn1 FIRST AMENDMENT TO DECLARAT ION OF COVENANTS IMPOSfNG AND I MPLEMENTING THE RIVER PO INT PUD LI C IMPROVEMENT FEE n-ns FfR ST AMEND MENT TO DECLARATION OF CO VENA.\JTS IMI'OSIN G AND IM:P LEMENTING THE RTVF.R POINT PUB LI C IMPR OVE M E NT HE (th is "PrF Cove nan t Amendm en t") is made as of Mar ch __ , 20 11, by We ingarte n Y!il ler Sheri dan , LLC, a olorad o limit ed liab ility co mpan y ("Dec laran t"). Reci ta ls This PfF Cove nan t Ame ndme nt is made with res pec t lo th e foll owing facts : A. Declarant exec ut ed that certain Declara ti on of Covenants l mpo sing and Im pleme nting th e River Point Publi c [mp ro vem ent Fee whi ch was record ed on Febr uary 20, 2007 , a l Rece pti on No. B7 02 16 13 of the record~ o f th e Clerk and Reco rd e r o f Arapah oe Cou nty , Colorad::> (th e "Origi nal PI F Covenant"). B . As more full y se t forth in th e Original PIF Coven an t, the PIF Coven ant imposed a Pu bli c Im prov ement Fee on ce rt ain PfF Sa les made within the PIF Property to be used as se t forth i.n t he !'Tr Cove nant includi ng, with out limitation, fo r th e pay men t o f Publi c Fin anci ng to pay fo r certain publi c imp rove ments of the commer cial project in the Ci t-y of Sheri dan, Co lo:ado , kn own as River Po int at Sheri dan. C . Sher ican Redeve lopmen t Agency (" Agency") in cooperati on witl1 Dec laram an d oth ors has ent ered into a refun di ng of the initial Publi c Financing and, in co nn ect ion with th e ref'UJ1ding of th e ini tial Publi c Finan cing, Agen cy and Dec larant have agreed to ar:iend and resta te th e PIF Agree ment. D. ln corncction wi th th e refund ing of the initial Public Financin g. Dec larant desires tu arn cnd th e PJF Cove nant as more parti cu!ar ly se t fo rth here in below . E. ·1 he Age ncy and tbe City of Englewood, Co lorado des ire to evidence, that tl ,cy have taken all app rop ri ate ac ti on and do hereby consent to this PIF Cove n ant Amendmen t. :,..JQW , THE RE FORE , Dcc lar:u1t am end s th e P!F Covenan t as more pa.rti cu lar ly sc i fort h herein be low: Section I . Capita li zed tem1 s that are not def med in this PIF Covenant Amendme nt have the mean ing defined in the Original PlF Covena· (. Section 2. ·n,e followi ng defin iti ons from Secti on I of the Pff Cownant are amend ed t o read as fo ll ows: "l.n dent urc" means an Indenture of Tru st b> and between th e Agency and the Trustee, as the snmc may from tim e to time be in effect, incl ud ing any sup plement or amendmen t thereto, executed an d de li ve red in connection with an y Publ ic Fin ancing . Dt.t.00096"6100119 199 ,299vJ 11 Pl F Agre emen t'' meR.n!-a Puh \i c Finance and Pub lic l mpr ovemcnt Fee Agree men t betwe~n th e Declnra nt and th e Agen :y, as t.1e sam e ma y from time to time be i11 effcc~ inc lud ing any supµlement or arnc Jmen t the reto, exec ut ed and del ivered in co nn ccti o11 wi th any P·.1b lic F111ancing. "PIF Covtrn ult " me,,n s the Origina l PIF Covc n,mt, as am ended by tl 11s I'll' r.nvenanl Amcnd:ne nt. "PIF Proper ty" mean s t he rta l pro perly descri bed on Exh :bil ,\ 3tla chc-d hr,n:ln . For the purp us c of clarifi cation, the PIF Proper ty hn s not chtmgcd sin ce the d;de of 1he Or igin al !'Lr Covenan t. Ra1hcr1 the names ctc <.I boundarie s uf 1.:ert uin lots ~md UluL.ks an d ot h er prop erty loca ted withi n River Po int at Sherida n Subd iv ision Fil ing Nu. I ha·,c cha nged as a result of rep latli ng pon ions of th e PIP Proper ly as River Poinl al S heridan f'il ing N os. 2, 3 and 4 . "f ru stec" means the bank or tru st com puny du ly in co rporated an d existin g under and by viri ue of 1h e laws of an y Slale ur or the U11 itcd St a les u f Amcri c>1 1ha 1 is July a ppn i11 lcd an d serv ing as Tm stc c und er th e lnd c11tu re. Scc1ion 3. The fi rst sc11tcn<.;c or Sect ion 8 of th e Ori[\inal PIF Cove nant is de leted in it s e ntirety and rep la ced will, th e fo llowing : "The Pub li c l n-.prov emcnt Pee rc\·e1:ues ge nera ted pur su:rnt to this PI F Covcmun , aft er c.lcd uct ion ufany ...:ul h..:,.a iu11 ft:\; urn i1.::1 tln; Co ll c;1;L i 11 g 1\gt;1 1t Agreement, sha ll be used to pa y l'ub li c Fi nan cing Requir ement s in acco rdan ce with 1h e ter ms of the Ind en tu re and the PIF Agreeme nt, Age ncy ad min ist rri tive cn~t.t.1 :-md to reimh 1:rse the City fo r the cost of providi ng muni c ip nl servi ces to River Point.11 Se ctio n 4. Section I 6 Ami,n umcn l by Dcd anrn l is Jdcrc J i11 it s entir ety and replac,d with th e folbwing : Section I 6. Amend men t by Declanml. Subje ct to the provi sions hereof reg:iruing obl.:l in ing th e prior wri tt en approva l of tl 1e Age ncy an d , i f' 1equi rc d by the Ind entu re , th e Tru stee, Dcclnrn nl may amend th e pro visions or thi s Plf-Cove1:am with the wnsenl of 1he Ow11cr s whu hu iJ fee ti tle to not less than se ven ty-l i ve pe rce nt (75%) of the tota l acreage of th e Plr Pro pe rt y. prov ided, howe ve r, th at so lon g as th e E nglewoo d Lease rema ins in effect, the Tenant und er th e Eng lew ood Lease shall have th <' so k right of consent as to the land su bj ect 10 the Englewoo d Lea se; mid prov ided fu r1hcr, that th is PlF Covcna m sha ll neve r imp ose th e Pu blic Jmprov cmc11 l Fee or. the fee interest of the Cit y of Englewoo d in the land subj ect to th e Eng lewood Lease eit her be fore or a. 9.er the Eng lewoo d Leas e ter.n inates anci co ntro l of the le ase d land rcvtrts lo ih e Ci ty o f Englewoo d. Section 5. Exc ept as .un ende d here by , the teems .u1d provis ;on s of the Ori g inal PIF Covenant rema 'n in fo ll fo rce and effe ct an d are here by ratified en d co nfirm ed. l)AL ·0009(5 6/00 l 19: 199 1299,J IN WITNESS \VHEREOI', Dec larant has ~xcc utcd thi s PlF Co venant Amendm en t as of the date fir st se t fo rth ab ove . ST A TE OI:-l E XAS J )s s . CO UNTY 01' HA RRI S ) \\IEINGARTEN MJLLER SH ERIDAN LLC, a Co lora do limited lia bility company Dy: WEINGART EN REALTY INV ES TORS, a Te xas Real Estate Investment Trust, Man age r By : _____________ _ Nam e: ____________ _ T itl e: !)ate· _____________ _ TI1e forego ing in strum ent was ac knowle d ged before me thi s __ day of March , 2011, by ------,-------•as _________ of Weinganen Re~lty In vestors, a Texas Rea l Estate ln vestrnent Trust., Mana ger of Wein garte n Mill er Sheridan LLC, a Co lorudo lim ited lia bili ty com pany. W ,tness my lumtl w,Li ufj cial seal. My co nuniss io n expires : _____ _ Nowy Publ ic DAL OO OQti~MOOJ I() 1991291l\•1 C:ONSP'.NT OP' f.HF.RrDAN l lEDEVELO l 'MENT i\C ICNCY STA'l'I; OF CU LOrv\DO )ss . COU NTY OF AJv\l'i\l-lO E ) SHE RIDAl'1 REDEVEI..Oi'MENT i\GENCY , a Color:,dn 11rban renewal aul1 11m ty By · _____________ _ Nam e: _______________ _ Ti tle : ____ _ OaH!: _______________ _ ·1 Il e lorcgomg in strument was ack11 ow lcd~cd before me th is __ d ay of March, 20 11, hy , as ___ of Sll orda.1 Kcclcvcl opmcnt Age ncy, a Co \0:·ado urban rc-1 ~~wa l n:1thnr i1y W itn ess my hand amJ orri t.:ia l ~.c c1l. My co ,:111,i ss io n cxµires: __ Nn1ary i'ublic DAL 000%50100 1 \9 · \99 1299 •3 4 CUNStNT OF CITY OF ENGLEWOOD, COLORADO STA TE CF COLO RAD O ) )ss. COUN TY OF ARAPAHOE ) C ITY OF ENG LEW OO D, COLORADO , a Colorado ho me rul e mw1 icipal co rp ora ti on [l y: ________ _ Name: James K Woocl~ Ti tle: Mayor ·n,c foreg oing in strumen t was ackn owl edge d befo re me this __ dny of March, 20 1 I , by __________ ,, as _ of City of Eng lewood, Co lorado , a Col orado home ru le munic ipal corpora tio n. Witn ess my hand nn cl offic ial sea l. tv'y co mmi ss ion ex pire s: _____ _ Notary Pu b I ic DAL :00096;G/Ol 119 .l 991 299•·3 E.Xll [B I TA Legal Uescr ipu on KJV ER POINT AT SHERID AN SUJ DIVISlO. FJJ..\:-JG NO . 2, COUN T Y OF ARA l 'A\ !OE, STATE Of OLORA DO , ACCU \W INU ·10 T l·IE R.EPLA T lti,CORDED DECE MBER 19, 2007 , 1 INDE R RECE PTI ON NO . B7 158299. EXCEPT ING Tl IEREFRO M LOT 2, 13LOCK 6 RIV ER f'O l'I\T AT SI IER.IDA SUl3 DIVIS ION FI Ll:-JG 0. 3, CO L'NTY OF ARAP AH E. ST AT E Of CO LORAD O, ACCORDING TO THE R.EPLAT RECORD [:D MARCIi lJ , 20 09 UNDER R.ECEPT ION NO . 13 902536 X RIVER PO INT AT S HERJDA N SUBDIV IS ION FIU N(; NO 4, C:OUN T Y OF ARA PA HOE, STATE OF CO i .O R.ADO , ACCOllDfNG TO THE HE l'LAT RE C0 RD l:iD NOVl .-:MBER 20, :W 0 8, IJNDER RECEJ'TI N NO . A8! 28/i3 5 COUNCIL COMMUN ICAT I ON Dat e: Age nd a It em: Suhjed: Februa ,y 22, 20 1 I 9 a v A Bi ll fo r an O rd1nJn ce authorizing and app rov in g th e Fir st Am enO m e nl to De clc1 ra1 ion of CovPn.ln ts Imposing and Imple menting th e River Point Public Imp ro vem ent Fee Init iated By: I Staff Sou rce: Finan ce a1d Admin1 str at1 ve Servic s De partment Frank G ,yglew ic z, Direc tor COUNCI L GOAL AND PRE VIO US COUNCI L ACTION City Council di sc uss ed th is am endment of Cove nant s Imposi ng and Im plem enting th e Rive r Point Pu bl ic l rn p rove n 1ent Fee o n Februa ry 14, 20 11. Ci ~ Co uncil di sc us se d v;:uious as pec ts of the Rive r Point dev elo::rn1 enl numerous tim es in th e pa st includ in g the wcund lease b etween th e Cit y and the Sheridan Re d eve lo pm ent A gency. RECOMMENDED ACTION Staff recommends th e C ity Council appro,e th e attac hed bill for an orcl inan.:e au th o rmng an c ;lpprovmg thP Firi.i A rn Pndm Pn l tn D r rl:ir,1 ti nn ni C:nvPn ,1n ts Imposing and Im plemen tin g th e River Point Publi c Improve m ent Fee. BACKGROUND, ANALYS I S, AND ALTERNATIVES IDENTI FIED Th e City o f Sheridan de clar ed cert ain areas w i th111 its b o undari es as blighted in 200} Jnd b e gan an 11n prove ment progra m t ha t incl uded leasing a portion (,4 .o ac res) of th e Englewood Golf Co urs e (now Bro k en Tee Go lf Cours e). Esse11 11 all y, th e fo ll owing am endm ents chan1:e how th e public im provemen t fee (PI F) is all oca ted in the fu 1urC! and should have no fin ancii1 1 or oth er irn pac l on lhe City uf E11gl ewuu d . The fi rs t sen tence of Section 8 of th e O ng1n al PI F Coven dnt reads as fo ll ows and 1s de le1ed i n i ts cnt.r cty ; "The Publi c Impr oveme nt Fee reven ues ge nerated pw su;rnt to lh1 s Pl~ L ove nant , ;ift P1 rl Pr:t1 rt1 11n n f :inv rnll erti on fpp un dP r th P rnll Pr ll o n Age nt Ag ree ment , sha ll b e use d (1) one-half fo r th e pa yment of an v Publi c Fin ancin g Requi 1ements in acco rd ance wil h th e ie rm s o r 1h e Ind ent ure, and (i i) u 11 e•hd lf fu, th t! ;\gt.-:nL y, u1 tli t! City by ag reeme nt with Age ncy, to prov ide mu n1c 1pa l se rvices Rive r ?o int , or (ii i) as m ay oth e1 be provid ed in th e PIF Agr ee men t." T he rrphlccment tex t re~1ds as 1o ll ows: "Th e Pllblic Improvem en t Ff:'e rPvPn11p~ gPnP r.=t l Prl p 1ir,;11.=1n1 10 l his l'I F C ovenant, .i h rr deducti o n o f J ny coll l:ct,o n fee under th e Collectm g Age n t Agre einl;!nt , 51,al! b .. U!>e tl tu µc 1y Pu lJliL Fi nar ,Ling Re q u11ement 111 .,L c.11cl ,1nce wi th 1l ·e l erms of th e Ind e n ture an d th e PIF Agree m en t, Age ncy ad rninis trJ tive cos ts, i11 1d 10 re ·mburse Lile Ci l~' for lh e c osf of p r ovi ding m unicipal serv ices 10 R1ve 1 i'oilll." Se c.t i("l n 1 (l A 111e nchnt:nt by Decl,ir.1 n t n f tlw Oric in;i l PIF r nvP11;11H n~:ids as fo llmvs and is deleted m it s en1irety: Se c ti on ! b. 1\mendrn en1 by De cl.1r 2n t. ··s ub1ect 10 the p• ovis10 113 h~reof r · ga rd1n g ob tain ing th e prior w rit1e 11 appro'-'al of th e Agency an d, if requi r~d by th e ln d~mu ,e, th e Trustee, D ecla ra n t may a me nd the p1ovis1o ns o f t11's PIF Covenan t w rlh 1he c<mc;en t o f l h e Own t:rs w ho hol d fee 11t l P to nn t IP ,, 1h:~r ,;, .. vcn1 y.fi vf! :1c:r ce 11: (7 51¼,) of th e totil l i1 C1 c,1 gc o f thr PIF Propert y; prov ided, h owever, th:\t ~o l o ng ,1s th -• Eng lcwucJd Lv ,1~:.;: rt:111.1 111 ~ i 11 dft:ct, 1h e T enant u 11r.cr the [nglev\'oud Lensc sh.111 h:we l he sole n gh1 of co nsen t r1s 10 rh e ldnd subject to the Engl evvoo d l e:l se, ;rnd provided fu rth er, th il t n o il lll tnd n,eni to th is PI F Co,,en ant sht1I I i1 r,por;e l he Public !,r1p1 0\ einent Fee o n t!,e fee mtere'-1 in th e lil1 id sub1ect 10 the Engl ewond Le,,se.'' T h e rcpi'.:1ccmr11 1 l ex ! rc,1d~ ,1:, (o ll o,v,; Sec.:l 1o n 16 . A ir,e 11dn1 en1 by~De d ar;int. ubj cc t to the provisio ns ·1e r eof regard ing obtJi run r, th prior wrill<:n .1p p 10\'a l o f th e Agency an d, ii rcqun eC by th e Inden tur e, 1h e Trt1s 12e. Declar an t m ay ame n d th e ri ~ov isiom, of this ?IF Covenant w ith the ccnse 111 of th e C vn ers w h o ho ld fo e 111 l e to no t lt)ss than o;0 ven1y.fi"P p prrpnf (7c;'1/oi o i th e tota l acr eage of lhc ?IF Pro p ert y; provided , h o wc,•c r, that so lo ng as the En g l ewood Lease rern.1ln~ 1r 1 d f t!Lt, 1h e Tcn,rnt u1 n.J~, lht En~l ewcl,d Le a~e ~hal l •1ave the so l e ri ght o f co11se111 as to the land sub1e ct to 1he Englewood I.ease; anc l pmvidecl further, that this PIF Co,enanl shall never impose the Public l 111p mvement FeP n n 1h e fi,p i nt eres t of th e City oi Engl ewood i n the land su bj ect to the [:,glewood Lease e ith er b efore o r aft er the Englewood L'=ase terminat(:)5 :in d rnn t·n l o f th e le ased land reve rt s ro rh e Ci ty of Enslewoo d. FI NANC l,\l IMPACT Thie; acti on w ill h;i "p no fin ,rnr 1,11 i111 p ,1 c 1 o n th e Ci ty of En gle""ood as the pro v isions of th e u ngma l l ea 5c rirc n u t 11npa c tc d by thi ~. rin t Amendment ~1n d th e PIF t ~rmina tes w he n th e lea;e is te r,nitldh..'l.i. LI ST OF ATTACHMENTS Pro p osed Bi l l fo , an O rdin ance