HomeMy WebLinkAbout2008 Ordinance No. 014•
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ORD INANCE 0. lj_
SER IES OF 200
BY AUTH OR IT Y
OUNC IL BILL NO . 8
INTRODUCED BY COUNC IL
MEMBER OAKLEY
AN ORDI NANCE APPROVI G THE PURCHASE AND SALE OF CO LORADO
DEPARTMENT OF TRANS PORTAT ION (C DOT) SURPLUS PROPERT IES LOCATED
ALONG SOUT H SA TA FL l:lY TH E CITY OF ENG LEWOO D, COLORA DO FOR
THE PR OPOSED DEV ELO PM ENT OF A HOTEL.
WH EREAS, the Co lorado Department of Transportat ion (CD OT) has surplu s property
ava ilable adjacent to th e Highway 85 /South Santa Fe Ri ght -of-Way, 330 1 South Santa Fe
Dri ve, which is onl y avai lab le to ot her locn l gove rnment s pursuant to a Righi of Firs t
Refu sa l: and
WHEREAS , the deve lop ment company -Va lue Pl ace Real Estate Serv ices LLC . or
such hote l franchi see as Va lu e Place may de sib'llate in the futur e. wishes to pu rclrnse th e
surplu s fo r th e purp ose of deve lop ing a Va lu e Pl ace Hotel : and
\VHEREA S, the Cit y is onl y actin g as a co nduit fo r 1hi s transacti on and does not wish
to in cur any liabilit y for being such a conduit; and
WH EREAS. th e Ci ty will purchase th e COOT propert y for $2 36.500.00, and
immedi ately se ll th e property to Value Place Rea l Estat e Services Ll.C for the
deve lopment of th e Val ue Pl ace Hotel for $236.500.00: and
WHEREAS , these propert y exchange s will co nvey to 1h c developer onl y what th e Cit y
rece ives from DOT ;
NOW. TH EREFO RE, BE IT ORDA INED BY THE CITY COUNC IL OF TH E C ITY OF
ENG LEWOOD. CO LORJ\DO, AS FOLLOWS:
Section I . The Cit y Co uncil of th e Cit y of Englewood, Co lorad o hereby approves th e
purcha se and sa le of the propert y desc rib ed in "Exhibit A."
Secti on 2. The Ma yo r and th e Cit y Clerk arc hereby au th orized to sign and attest a
Quit Claim Deed for th e sa le of thi s rropeny. in a fo nn as show n on ·"Ex hibit B".
Secti on 3. The Cit y Manager or dc signcc is hereby auth ori zed to sign th e Closin g
Doc ument s fo r the purchase and sub sequent sa le of thi s propert y.
Introduced. read in fu ll . and pa ssed on fi rst readin g on th e 4th day o f Fe bru ary, 2008 .
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11 b ii
Publi shed as a Bill fora n Ordinnnce on the 8th da y of February. 200 8.
Read by ti tl e and pa ss ed on final read in g on the 3'J day of March. 200 .
Pu blish ed by title as Ordi nance o. fl, Series of 200 8. on the 7th da y of Marci ,.
2008 .
I, Loucrishin A. Elli s, Cit y Cle rk of th e Cit y of Englewood, Co lorado, hereby ce rt ify
that th e above and fo regoi ng is a true copy of the Ordin ance passed n fin al readi ng and
publi shed by tit le as Ordina nce No. ,11_. Series of 2008 .
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EXHIBIT "A"
PROJECT NUMBER: NH-FCU 085-2(51) IXFU 085-2(24)
PARCEL NUMBER : SAR Rev .
DATE: October 30, 2001
DESCRIPTION
A remainde r parc el of land No. SAR Rev . of Iha Department of Transpo •t ation,
· Slate of Colorad o, conlai ning 23,889 sq . ft., more or less, In Lots 3, 4, 5 and thal
part of Lot 6, ail In Block 1 of CARROLL ADDITION In the SE1/4 of the SE1/4 of
Section 33, Township 4 South, Range 68 West, of the Sixth Principal Meridian , In
Arapahoe County, Colorado, said remainder parcel of land being more
particularly described as follows :
Commenc ing at the NW corner of the SE1/4 of the SE1/4 of sa id Section 33 ;
T:1ence S. 00° 13' 11 ' W ., along the west line of said SE 1 /4 of the SE 1/4 , a
distance of 44 .35 feet , more or less, to the TRUE POINT OF BEGINNING ;
1. Thence S. 71 • 35 ' 41' E., along the north property line , described in book
5902 , page 1, recorded in the clerk and recorder's olllce of Arapahoe
Co unty, a distance of 287 .41 leet;
2. Thence N. 20• 16' OB' E., a distance of 93 . 79 feet, to the north line of
Lot 3, Block 1 of Carroll addition ;
3. Thence N. 71 • 48' 42 ' W ., along the north line of said Lot 3, a distance of
144.71 feet;
4. Thence N. 89° 20' 05 ' W., E, distance of 167 .56 feet, to th e NW corner of
the SE 1/4 of the SE 1/4 of said se cti on 33 ;
5. Thence S. 00° 13' 11 ' W., a distance of 44 .35 feet , more or less, to the
TRUE POINT OF BEGINNING .
The above describe , ·e ma lnder parcel contains 23 ,889 square feet, rnore or
less.
BASIS OF BEARINGS : The astronomic bearing of N 88° 00 ' '18' W. from
COOT control point 'Platte ' to COOT control point #1-285 was based on a solar
observation . Po int 'Platte is a 3 1/4 ' aluminum cap In grass 'belt ' 40' south of
Hampden Ave . and 500'+/· west of South Platte River Dr. west. CP 1-285 is a 3
1/4 aluminum cap 30 ' south of Hampden and 1425' west of point 'Platte .'
Prepared by and for the Colorado Department of Tra.nsportation
James D. Styron/ 303-757-9924
2000 S. Holly St., Denver, CO 80222
Utrtl f-'nrm
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TIII S OEF.D , m:adt dus_da) of ____ , JO_,
htl\\Ccn
TIIF. IILl'ART/ll t~T OFTRANSl'OHT ATION,
STATE OF COi.OK.ADO
ofthr Ch) and CoWll ) ofD:n\'tr ind Start of C"londo,,rantor{s), ond
lor.u:>1.-pt. "!TrM.:ip:rt.:i.ucn
rr-or,,ny H1.r; ~-~ S.~1:iri
!~I!~ S. C.:.laet, it!., !;.-, n
1tohoulr galaddfcu is
of lhr County of and Stair ofColonulo, irantcrts),
G).01111, 0.Jlor.a::i l'.,◄'Jl
A.tu,: Hr,. reuer...,luw1
SEEAlTACHEO LEGAL DESCRIPTION FOR PARCEL , ATIA CIIED IIERETOAS PART OF l!X IIIB IT MA~.
SU llJ£CT TO &n)' and •II e.ucmcnts ofrecord, Md 10 an)' and all existing u11lhiu u consrructcd, -~d for 1htlr m1imrn1ncc u nrcusary.
Fonner l'rojcc1 Nu mbt-r:
COOT Parcel Number.
Pt ojcctCod::
TO IIAVE AND TO 1101.D lh, ,.m,, 101,lhu whh ,II ""' si,g,la, lh, •ppun""'" "' pd,il,t• """""'" !7~':';;.'~:.~,:;:r.;:~: ·~~::t.:::::'~;;t,, ~~Jh,:,~,:,';P,~';;:;;;~h~:~~·:i ';.";1=;::..~'.!, "'"'~•) .
IN Wll'N[SS WH EREOF, the gramor(s) has necu1ed this deed on tht dole ltl fonh lbo\•e.
Douclu \\. llcnnru, Ch Id Clerk for Hlr lu of \\'1y
STA TE OFCOI.ORAl)O )
City an d )H.
Cuu nlyo(Dt nl'tr )
UF.l'ARTM['iT OFTRA Sl'ORTATJQ..;,
STA TE OF COLO RADO
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ChldE:ui:lntt r
~ir~fi~ti~!::1';I~eu~1::~\~c~::,~~i~to/l~~rk "}~:'~jgl-u_o_f "~: ~-p;,n_m_"_' olJr.wpo~o1t.~ "•a"'1e""11T1f CS:111"iora;;;/r.,,-
~;~~~':u~fsit~dc:;!fr:S~tcb l sol,
--Niuu :and AdJrm of l'erson L,c:a tmg Nc"I)' Cre.11 rd Le511I Descript ion U Jl•l.5·106 ). r ,•K.<S') ------
:r,.11,,,JJ.kf\.4.1ot.QIIITn.A IM U[fll l'o'°"t ol J
• COUNCIL COMMUNICATION
Date :
Fe bru ary 4, 2008
Initiated By :
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Agenda Item:
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Community Deve l<'"men t Departm ent
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Subject :
Purc has e and Sal e of CDOT Surplu s Pro perly
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Staff Sou, ce:
Mark Graham, Sen io r Plann er
COUNCIL GOAL AND PREVIOUS COUNCIL AOlON
• At th e November 26, 2007 Council Study Sess ion, representatives from Value Pl ace
presented their development proposal and req ues ted that the City exercise a r1,;ht of first
refusal to purchase the COOT surplus property.
• On Jul y 16, 20 'Coun ci l dis cusse d CDOT's fair marke t va lu e price fo r the land and th e
new lan d app raisa l commi ss ioned by adjace nt property owner, Jim Ve no, th at resulted in a
red uced asking price for the CDOT land .
RECOMMENDED AOlON
Staff recomm ends t;1at Council adop t a Bill for an Ordinance auth ori zing th e purchase of th e
• designated CDOT surp lu s property and sale of same for developing a Hotel.
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BACKGROUND, ANALYSIS, AND ALTERNATIVES IOi:NTIFIED
The City has considered the use of th e CDOT surplus pr operty for at leas t fiv e yea rs for vari ous
purpos es. In 2002, a letter fr om th e City to COOT proposed three scenarios :
"Our firs t preferenc e is to respectfully request that COOT set aside the properties and not
dispos e of th r n at this tim e. This wo uld provide us an opportunity to carefu ll y plan for
pot ent ia l futur e use in a mann er most befitting our comm unity.
•11 th at is not a feasib le co nsideration, we would like to determine wheth er COOT wo uld be
willing to dee d th e lots to Engl ewood or allow our acquisition of the properties for a nominal
lee.
II neither of the above options are amenable to COOT, we would lik e to en ter into
negotia tions to discuss furth er op ti ons that wou ld allow Englewood to acquire th ese
properties.•
CDOT ag reed to keep th e property off the market until at least th e following bud get yea r. In 2003,
th e developer of th e Dri ve-In Theater property, Embrey Prop erties , requ es ted that CDOT give the
surplu s property to th em so they could provide a landsca pe buffer to th eir new development.
CDOT eventuall y issu ed a revocab le li cense agreement to Embrey that wi ll all ow th em to landsca pe
the CDOT prop erty so uth of lh e London Motel.
Voters pass ed RTD 's funding meas ure dubbed "Fa sTra c ks" in 2004, wh ich in ci •.1 ded fun ds to •
provide additi o nal parki ng in th e So uth wes t Corrid or and more pa rti c ul arl y in Englewood. One
opti on th at staff exp lored was to provid e a p edes tri an tunn el to access th e wes t side of Sou th Sa nta
Fe Drive and to acquire CDOT surplus properti es and priva te property fo , deve lop m ent of Park 'n
Ride facilities. Th ough preliminary engin ee rin g and cos t es tim ates for th e tunn el made it appear
feas ibl e, stJbseq uent enginee rin g an d cos t estimates indica ted it would be too expensive to build .
CDOT aga in offered to se ll surplu s prop ert y from a Sa nta Fe Drive transp ortati on improvemen t
project to th e taxing entities in 2006. O nl y En glewood respo nded thi s tim e. Jim Ve rio, a property
owner of two adjacent parcels, req ues ted th e City's invo lve ment to fa cilitate land assembly fo r
redevelopm ent. City staff worke d with the property owner, his commercial rea l es tate broker an d
poten ti al developers. W~ en the hotel development project matured, the parti es began serious
negoti ati ons o n land price. CDOT es tablished th e fair market valu e for th e land . M r. Veno, th e
broker, the hot el developer and :h e City co nt es ted the land va lue. Mr. Veno commissi o ned an
appraisal which va lued the land sign ifi cantly less than CDOT. CDOT co mpro mis ed and offered th e
propert y at a lower rate which is acceptable to the hotel deve loper.
Th e Englewood City Charter requires that Council adopt a Bill for an Ordinanc e for the purc has e
and sa le of real property. The contemplated action is for the City to purchase CDOT land adjacent
to land owned by )EV LLC a,·d under contract for sa le to Va lue Pla ce H otel. Englewood would
immediately convey th e land purcha sed from CDOT to Va lu e Pla ce Real Estat e Services, LLC for
hotel devel opment. Th e proposed development is a four-s tory b uilding with appr ox imately 120
rooms, accessed th rough a ce r•tral lobby and internal co rridors .
Th e deve lopment proposal affects two properti es: th e CDOT p ro pert \ and one owned by a priva te •
party. Th e CDOT property is vacant and has been for more th an a deca de. Both p roperties are
zoned 1-1, Light Indu strial, which p ermits commercial, offi ce an d itJdust ri al uses, including: outsi de
storage, warehousing, m anu facturing, offices and contractor shops, but not hote ls or ex tended stay
hotels.
H otels we re omitted fr o m th e 1-1 Distri c t when th e Unified D eve lopment Code (UDC) was adopted
in February 2004, though they were permitted by right before th e UDC. Staff presented th e issue
to th e Pl an ning and Zoning Commission at a Study Session on December 4, 2007. The Planning
and Z oning Commissi on cor. .red staff'5 request to m odify th e UDC to permit Extended Stay
H otels and to add H otels ano Extended Sta y H otels to th e list of permitted land uses in th e 1-1 zone
district at a Public Hearing on January 6, 2006. The Pl anning and Zoning Commission supports th e
proposed changes to th e UDC and recommends th at Council adopt an o rdin ance to make th e
changes. Fi nal approval on th e propose d UDC change is by City Council.
Th e c urrent vaca nt land does not genera te sa les tax and does no t generate property tax on
improve m ent s. Th e proposed $7.5 millio n in ves tm ent in commercia l buildi ng and site
improvem ents w ill ge nerate significant new p roperty ta x. Th e City w ill ca pture use tax on th e new
deve lopmen t and ongoing lodger's tax on the o p erati o n o f the faci li ty.
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FINANCIAL IMPACT
The cost of th e vacant COOT parce l is $236,500 for a littl e more than half an acr~ of land . The City
anticipa tes a simultaneo us closing on th e pur chase from COOT an d sa le to Valu e Pl ace tha t will not
requ ire th e City to post any funds . Th e City is not participa ti ng finan cia ll y in the transac tion th ough
staff time has been expen ded. Engle wood wi ll coll ect us e tax on th e new cons tru cti on materi als of
th e estima ted $7.5 million developme nt and co ll ect a 2% lodging Tax on th e 120 -124 room s
expected to rent fo r $209 per week .
LIST OF ATTACHMENTS
Map
Bill fo r an Ordinance
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C.,, of &sle-..4 Co-
va/-Pla.ce
&trmkd Stay Hotel
~a-en,, .. Map
Novembe,-2007
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