HomeMy WebLinkAbout2010 Resolution No. 040COl<TRACf NO, 'l'o-,).O/ O
• RE OLUT IO I NO . _j{)_
SE RIES OF 2010
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A RES L T ION SU PPORT ! GA RE N I' CO 'CES Sl0 'TO TJI F LE:.SE AG REEME 'I
IIFl'IVEEN Till : ENGLEWOOD ~ICI El LA ' RE SERV OIR FO NDAT ION (E MRF )
AN D n 0 1' DE N\/ ER . I C
\V II EREAS. lltt.: Englcwoocl'~lc l cllan Rcsc rvoil Founcla1ion (EtvlRF) ,,:1s fo rm ed to oversee
1hc ckvclop mcm of the ~lcLdl3n Kc se r,01r propc11y: an d
\\'I IEREAS. City Counci l rcv1cwcd the I cltcr o f Intl.Ill a11d pa ssed Reso luti on o. -W. Scrics
o1'200 su1>p o11 1ng 1l1e 11cgo 1inti on ,,r a lt.:.i!-oc agrcc11lcn 1; nnd
WH EREAS. th e Lease wuh TT of Denver, Inc. wa s for np prox 1mn tcly JJ..79 acre s of the
Englcwoocl/tvlcLcll an Reservoir Fou nda11 011 propcn y: :md
WH EREAS. ,he EMRF Board of Directors has unanu nously approved the lea se with 'IT of
Denver, Inc.: and
\\'HERE.I\ . under 1hc 1crms of th e Lcn sc Agre eme nt . rental rates we re cstabl ishccl for ;i tlurty
(JO) year 1c11 n. fo ll ow in g a ''du e chll gcnce" period : and
\\'1 IEREAS. prior to th e end nfthL· dm· d1hgcncc pcriCld o n June I. 2010. ~ltkc War..:. 111ilio 1i1y
\I\\ 11..:r of rr of D..:mcr. apprn:u:hc d 1hc Et-.lR F n 1,,ll'd with .1 rcqu c.-.1 for certain rcn ,al
w11ccs~1(1 11 :,, \\'l11ch was ha:,,cd on d1 :-.cov cr) of c:ost that wo ul d h:nc 1fl hL· 111cu1n.:d 10 hutld 1111 the
snc due to :,:p i] co 11d nio11s that wcrL' nnl ev id en t when he c111 crcd 111 10 the l.ca~c: and
\\'Hl::.Rb\S. rc nl would bc rcdm:cd III tht.: first tent 10) yea rs Uy $50.000/yc ar and :in
additi onal redu cti on o r $40.000 year is pro posed to go mt o c ffcc11fand when a sc1 :oml dca lc rslup
1!-clcvclo pcd tin th c propcny:
NOW , T IIER l,FORF . HE n IU : OLV Ell IJ Y TII E CITY COUNL'II ()I· TI i i· l'I l'Y lll'
l'~GLEWOOD. COLO RADO. TII \T
Section I I hL' { 'ny Cn11nc!I nl the City 111' l·nµk,Hiod. Co lor.. herein· s upp11rts the Rcnl
Co11ccss1P t11<l the I c;1q• Aµ.rccm..:111 hcl\\CC 11 th e h1!,!lcwm 1d Mel cllan R..:~cn u 11 1-'ou ndallon and
ri pf lkll\..:1. In c
\l)t ll' 11 ·1 > ANIJ ,\l'l'l(O\ I I> tlu, c l SI da; ol J1111 c. cO I O
\ 1 1 ES'I
\
->ft_ u lf'ttli_/
1 tiuc nshm A Fll1 s. C11y Clerk.
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CO U NCI L COMMUNI CATI ON
Dale: Agenda Item : I Suhject:
June 2 1, 20 10 1 1 l iii I Reso I11 1io n of support l o l he En glewood M cl ellan
Rese rvo ir Fo un da ti on for an ;i rnendment to [MRF
I ase w it h TT o f D enver, ln r
lniliated Bi•:
nglewoocl Mcl ell an Rese rvoir Founda ti o n
I Sl aff So urce:
Micha I Flaherty , EM RF Director
COUNC IL GOAL A, D PREVI O US COUNCIL ACTION
In 1999, Ci ty C ouncil auth orized th e creation o f th e Englewood M c l ell an Rese rvoir Founda ti on
(E MRF .) On December 17, 2007, Cot111c il supported EMR F in th sale of ap p roxim a1el1• 1 I acres o f
PAS S l o RTD for $3.2 m illion. D1iri ng an Exec utive Ses sio n of june 2, 2008, City Coun ci l review ed
th e term s o f a Le11 er of Intent fr o m TT o f D enver to leas app roxim ately 12. 79 acres o f Pl arr1 ing
Area 84 (PA 84 ), and in stru c ted EMRF to proceed with leas e negotia ti ons. C ity Counci l approve d a
leas agr c m enl with TT o f D enve r on O cto b er 19, 1009. D uring an Exe utive Se ssio n of Jun e i,
2010, [MR F st aff prese nted the p ,oposecl am enclm enl fo rm to City Coun d
RE COMMENDED ACTION
rM RF reum uncnds Council approvill o f the reso lutio n supportm g an am end m ent to the lease
l1gree men l h el wc 11 [MR~ and TT o ( D enver.
BACKGROUND
0 11 O ctober 19, 2009, ity Council p,1,s d a reso lu 11 0 11 support ing th e lease o f FMR F pro perly to
TT o f D enver, d.b .a, l11fin i11 o f Li tt ! •10 11 . Under th e tcrrn s of Ihe lea!'.l e agr eeme nt , r •nt al ra tes were
ec 1Jblishc d for a 30·)'l'ill 1,-.rm, foll owin g ;i "d 11 P dili genc p" prriod. Prior to th e L1ncl o f th e due
dilige nce p l •ri o rl n n lu ne 1, 20 10, tl w 111 ajonty ow ner of n o f D r nvN , ,1pp ror1ch2d the EMRF I30L11TI
\\llh c1 n•q11 t•,1 for tert a1 11 1e111al conct•)sions. ·11w, 1 q ues t wa~ b,tsP d 011 cli ~Lovery c,f cost th ,11
wo uld havr 10 hP 1nu m ecl to ht11lci 011 the sit e du e to soil co ncl nions lhill were 1101 ev ident w hen he
i'llt c.•rt.·cl into thC' le.i se. The 101L,I cos ls to dC"ve lop th e p ro pl1 rt y '\Ot1i cl l w III e'<cess o f $1 million.
\i\l h1le rr o l D(•1wc•r h;,~ mplet d 111 0s 1 of th • pl,11 111 ing, ~111 gi11 ccring .rn d l'L!llllitt in~ work , shor t of
ohl,1min J-t l us huildmg p •rmi t necc•,i.1 1ry to he8in rons1ruction, l hev h,wP 11 01 vel cornpleted ,111
.1W('l•m~n l ior proJ ct 11nancmg cl ue to the tost :..t.1l,1 1io11 .
[l\'1R r is pr pa red to make lease adj ustments in or der 10 1ll ow TT of De nve r to gr fo rw,,rd wim th e
p 1ojC:'ct Tlw ra tio1wle 10:-rec.0 111 111ending a ent concession i.., h,PiC'd nn a num be r o; .'i1L10 r'::>. Th 0
f1r~t and 111 0..,1 Impor1,1n t Is to pres rve the )Q.yea r leJse \\ 1th TT o f Dem er an d lhe In ·ome th,1l 11
\\Ill generate 10 [MRF and will he p,issed on l o th e C it1's LATR fund The ~/\\Rf Bo.ircl members
be hev th at th e opening 01 th e 111 11 111 11 dea lers hip w il l have d pm1 tive I111pc1c t on fut ure de\ loprne nt
of [MRF p rope, lies .
Th e lease term of 20 years wi th one re newa l op ti on of ten ye ars and nine re newal opt io ns remains
'lnchanged, as does th e initial depos it of $200,000 an d co 11 stru ctio n ren t of $17,875/rno nth .
FINANCIAL IMPACT
The ta ble below ou tli nes the propose d changes 10 th e lease .
---Yea rs Current Annual Prooosed Annual R_eductlon Cumulatl·,o
6/1/1 0 -4/t/11" $214 496 $214 ,496 No chanae No chanae
1-2 $428 992 $378 992 ($50 000\/vear l 1$100 000 )
3-5 $428 ,992 $338,992 ($90 ,000 )/vear ($370 ,000 )
6-10 $4 71,891 $381 891 ($90 ,000I/vear 1$820 ,000) _
11-12 $519 080 $479 080 ($40,000)/year 1$900 000 )
1 otal 12 Years $5 757 071 S4 857 071 ($900 000\
Valu e/Saft .. $9 .06 $7.64
13-15 $519 080 $519 08 0 No chanae ($900 ,000 )
16-20 570 988 57 0,9~8 No chanQe (!fil)QJ)QQL
21 -25 628,087 62 8 087 No chanae ($9 00 000)
26 -30 690 896 690 89 5 No chanae ($900 000 )
Total 30 Years $16 764 166 15 •,04166 ($900 000\
Value/Saft .. $8,57 $8 ,62
· Constru ction peri od 1s 6/1/20"10 -1/1/7.01 1 or opening or bu sin ess (whi chever co mes first )
"Value based on 20 10 dollars -Shea to Scham p Sal e $7 27/sf (200c), EMR F to RTD Sa le -$7 25/sf
LI ST OF AH•CHM EN TS
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