HomeMy WebLinkAbout1984-04-10 (Special) Meeting MinutesS PE CIAL MEET ING:
COUNCIL CHAMBER S
City of Englewood , Color ado
April 10 , 1984
Th e City Council of the City of Engle wo od , Ara p a h oe County ,
Colo r ado , met in sp ec ial session on Apri l 10 , 1 98 4 , at 7:00 p .m.
Mayor Otis , presid i ng , ca lled th e meeting to o rd er .
COUNC IL ME MBER BRA DSHAW MOVED TO ADJOUR
P.M. Council Member Vobejd a second ed th e mo ion.
r oll , th e vote r esulted as follows:
THE ME ETING UNTIL 7 :30
Upon a call of the
Aye s :
Nay s:
Absent:
Council Members Hlgd ay , Vobejda , Br adshaw ,
Otis.
Non e .
Council Mem b ers Neal , Bile , Weist .
Th Ma yor declared the motion carr ied .
Mayo r Otis , presiding , called the meeting to orde r at 7:30 p .m.
and Council reco nvened at that ti me .
The Invocation was giv n by Coun ci l Mem ber Hlgday . The pledg e
of a llegia nc e was led by Mayor Otis.
Mayo r Otis asked for roll c a ll . Upon a call of the roll , th e
follo wing were present:
Council Members Higd ay , Vobejda , Keist , Br adshaw , Otis .
Absent : Council Memb e rs Nea l , Bila .
Th e May or d e clared a quorum present.
Also present were: City Man age r Mccown
C i ty Att o rn ey DeWitt
Assistant City Man ager Vargas
Director of Community Developm~nt Powers
Deputy City Cl er k Owen
llp1 i l l O, l 9 8 4
Pnc~h 2
COU NCIL MEMRCR BRIIDSHI\W MOVED TO OP EN TH~ PUBL I C HEAR I NG TO
CONSIDER AMENDMENT NO . 6 TO TH E ENG LEWOOD DOW NT OWN RCDCVELOP ME NT PLIIN .
Counc i 1 Member Hi gday seco nded th e motion . Upon ;1 c-r1 11 of the r oll , t-h
vole r sulted as follows :
/l yes :
Nays :
Ab s ent :
Cou nc i l Members Hi gday , Vo~ejda , Bila ,
B1 c1 dshaw , Otis .
None .
Council Members Neal , Weist .
Th Mayo r declared th e motion carri ed .
Mayo r Ctis apologizec1 for th e delay.
Ma yor Otis sta ed the purpose of the pu blic hearing wa s t o
consider amendi ng th Downtown Reve ]opment Plan to list additional
properties and leasehold interests for acquisito n by the Englewood Urb an
Re new al Autho rit y . The prop e r ties includ ed 33 11 South Broadway and
leases within 3315 -3386 South Br oa dway , 3340 -3384 South Acoma S treet , and
33 -95 Nest Girard Ave n ue .
Mayor Otis stated the r e was in adeq u a te evidence before the Urb1n
Rene wa l Authority to sho w that g ood faith nego tiations have occurred
bet ween t he ten a nts /p rope rt y ow ners a nd Br ady Corporation . Ma y or Otis
stated Brady r epresentatives informed the Urba n R newal Authority th at
offers hav e been mad e but th e te nants or prope r ty owners invo lv ed hav~
not had enough tim e to respond . Se ver a l tenants hav e requested City
Council not act on t c amendment since t hey have not had enough ti me to
co nsider the offers .
May or Otis subffiitted for the reco r d a letter fro m t h e Super Yarn
Market dated April 5 , 198 4, and a letter from Atler , Zal l a nd Haligman
d a ted April 9 , 1984 concerning the Physical Whimsical , lnc .
Mayor Otis stated since the Urb an Re newal Authority di d not
recc ivC' he necessary doc um entation to ma ke a re commendation to th City I
Coun cil re ga rd i ng the leases and property req uested by Br ady
reprPsentatives for acquisition b}' the Urban Rc~ewa l Authority , th e
Coun cil wou ld be unabl e to make any decision at this meting .
Mayor Olis info rm ed members of th ~udience they were welcome to
address Council on this subject even though a decision ~ould not be mad e ,
or th ~y cou)~ ~~it until th e nex~ hearing.
Mayo r Otis then asked Mr . Robert Paysinger r ep r esent ing S. Bud
Br ■dy and Brady D0velopment Corporation t o come forward.
I
Ap1 i I 10 , 198 4
Pag )
Mr . Pays inge r st a ted n~gotiations have t a k e n plac e over t h e l ~,t
month . Mr . Paysi ng er stated they !1 nve had probl ems obtaining apprais a ls
and 1he 1·efo r e th t£n a nt s ha v e not had en ough time to consider offers ,
Mr. l'.,y si nger stated on this dny of f e r s we r e se nt out to all t h e tenants
and 1~quesled a two wee k co nt i nuance until Monday , April 23rd .
Cou nc i 1 Membe r Bradsh a w stat ed she was un d r the imp r ess ion wh e n
h e h.is as k ed fo r c on tinuanc e of th e first hearing such it ems would b e
tak0n c a r e of b y this da te.
Mr. Paysi ng er st ated t hat was c o rr ct beca u se at that time th ey
we r 0 assured by the app r a is ors that t heir docume nt ati on would be d o n e .
Th a t did not occur . There was noth in g they cou ld do to fulfill the
obl iqalions to negot i ate in good f aith until the appra isals were
r ec0 i ved . Now that they are comi ng in , they have sat do wn with th e
te n~nts and p rogress has been made in some in stances . Mr. Paysinger
st ated th at a tw o week continuance should give e veryone a chance to
r eview the situation .
Council Member Bradshaw hnd a quest ion on t he ti me line. She
st ated sh e did not know how a public he ar ing could be held on the 23rd if
t he te nan ts d eadl in e was the 20th . How cou ld th a t g i ve t h• Urban Re ne wal
t 1 1c to ma ke a re comm ent at ion.
Mr. Pa ysinger stated he would be forwarding mate r ial to the
Urb an P.enwal Au ho rit y t hr oughout th at pe ri od .
Mayor Otis a sked for any c omme11ts from thP aud i ence .
Mr . Richard I. Brown , of Alters , Zal l and Ha li gan c ame forw ard
repr esenti ng Physica l Whimsical . Mr . Brown stated th ey received thei r
appr ~isal and offer at noo n on this date ; a nd in his opini o n the offer
w~s no t acceptable . Mr . Brown stated there has be e n no cons ide r ati on
given to these bu s inessmen for reimbursement for t he time and troubl e
caus~d to th em in the interruption of their busin ess a nd the uncert aint,·
to th ir liv 1 ihood . Mr . Brown r ead froffi Mr . Paysinger 's l ette r o ff er ,
''p l e ase r~view the agreement at your e ar liest convenie nc e , a nd call me
with your decision c oncerni ng this matt r o n or b e for e April 20, 1984 .
Please note that this if our fin a l of fer on this matter . J( we do n ot
h e,,r fro on or be:ore Apr il 20 , 19 84 , your lack of response will b
con side r ed a rejection of our offe1 ." Mr . Brown the n pro,·id d copi s of
the su bj ec t letter .
Mr. Br own sat d it nppea r d to him he offer was a manda te not
the begi nning of g ood f a ith n ego ialion s . Mr . Brown obj ected to Mr.
Paysjnger 's request f or a tw o w c k extension and suggested he (M r .
P~ysing~r} wou ld not b any more pr e pa red in t wo we e k s . Mr. Br o wn stated
Mnyo r Otis ha s al r eady f ou nd that there was not good faith negotia tion at
this pa rticular tim .
ll pr i l J O , 1 984
Page· 4
n quor u m o n the iss u e of good (fil th negot i c1 tions .
C i ty Att o rn ey De Witt p o int ed out hal Co u nci l would ac t t h ro u gl ·I
M1 . B r o wn apologlzed as 1 ·1. 11u d p1 c sum cd th cl t the issun had b ee n
vot"C'rl wh n he-he a rd Mr1yor Otis I s ·, 1 T;lent . Mr . Br own ask d Co u nc i J to
cons1dl.•r a 120 da y e>:t e n sion to er ,r lf' a prof ess i o n al app Laiso r . Mr .
Brow 11 s t ated g o od f a i th n p9otiatio 11, h ave n ot ta ken p la c e in r espec t to
Physic-al Whi msical . Mr . Brown stat •J th t=-first t i me the y had hea r d of v
n u mbc 1 was Mr . Paysi n ger 's 1 lte r c · yeslcr d=t y .
Lar r y Rich , a t to rn y re p r s .L ing M~n •s World Clothing S to re
l ocated at 3365 So uth Broadway , c nm forwa r d , Mr . Rich s t a ed hi s c l i en t
fir st received a l etter d a ted March 26 , 1 9 8 4 f rom t he Br ady Corpo r ation
a d v i si n g that th e y were t o move a n d of f e r ing X n umber of dollars . Mr .
Ri ch stated t hey met ~ith Mr . Paysinger one wee k ago and h g ave them
th r e options : 1) o ne would be a buy -out a t a d ollar f igu r e ; 2) they
wou ]ct discus~ rr.ov ing i n to a new f acili ty ; a nd 3 ) if the y could not a g ree
to a dollar amoun t , t he next step wa s c o n<lem n a ti o n . Mr . Rich sta ed thE:
two ~0ek conti n u a nce wa s not feasibl0 beca us e of the ime i would t a k E
t o g e t an app r aisa l a nd e nte r ed into ne g ot i at i o n s . Mr . Rich stated h is
clie n t would have t o s ay n o o Br ady i n th e ne x t t wo w~eks b ecause th ey
would not ag r ee , and then Brady would as k to co ndem n t he p r operty .
Council Mem b e r Higda y s ta t ed t h at Brady d oes no t c o mmen c e
c o ndemn a tion proceedings .
Mr . P ich stat ed Br ad y wou l d initiatr a r eq l1est t o t h e condemnina
authori t y th e n . Mr. Rich st a ted un til his cli e nt wa s abl e lo h,1v e th e ·
ti me to obtain heir own expert s to g ai n kn oy,;:edgc-of what the val u e of
thei r l easehold inte r ests we re t h ey would not b a ble t o discus s i t witl1
Br ady r epresentatives .
Mr . James Kurt z-Phelan of the fi r m Berenbaum & We i n sh1e nk ,
r e p re s ~nting the o wner o( the Eva n s Coffee S hop at 95 W. Gira r d , ~•i k
Katsnc ls cn , c a~e f orward . Mr . Kurtz -Phelan sta ed the y rec £i ved the s ame
1 tter as every o ne lse . M~. Kur t1-Phe la n p:o~ided pe rsonal h is tor i c al
bac kg r ou nd of his client coxing f r om Russi a and explai ned the human
ill'p act that has bee n experienced b y Mt . Ka tsnels o n as a r esu lt of this I pr oject .
Mr . Ed L c , LPC' and Mc1 rg orc1no , came fo rw nrd rep1 ?se:1ti ng TE>d
Val a is , Ted 's Custom Clothes at 33 We st Gi r ard . Mr . Lee staled t h ey h ad
rec eived a ~imil ~r lett r at noon on t his dat . Negotia tions s~arte<l
les s th a n 10 d ays ago , a nd he f elt hat in t wo we eks Mr . Btu::!:.,-y;ou ld n ot
bl in a p osition to come to the Coun ci l and Asse rt t h a t h e ha~ i n f act
nego t iated in good faith . Mr. Le stated Mt . Brany h as i ndicat<,d to
thes tenant s th a t he wou l d only p a y t he v~!ue of t hei r l e ase bnd som e
r eloca ion e xpe n ses un dcq · thP quise-of cond0IT1n r1 t ir-n . M,. L C'C' !;l.1tt=>C1 Mi
I
I
l'l p,, 1 10, 1 984
Paq, 5
Bt ;idy shou l d c o ns i de r cosls th.1t busin esses h ave in r e furbishi ng ne w
l Pil!H •hold sp ace a nd what th e ir lo s in profit s wou ld be .
City l\t l or ney De Witt st a t ed t h e cD ndemning a uthority wa s t h e
l11h.·in Renew a l Auth o rity , not City Co unci l. Acco r din<J to the statutes
thr•1,• wa s a r equi r eme nt th at t h e pl a n b e a p p r ov cl b y th e City Counc il a nd
City Coun c il wa s co nsid er in g a n am e nd men t to thnt pl a n.
Oli ve r Giseburt , 3 1 7 1 Sout h High , business s 338 5 Sou th Ba nn ock
o f Gi scb urt Insura nc e Agency , c ame fon-1a1~. Mr . Gis e burt pr ovided his
re col l e cti on of the hi sto r y in l a nd developme nt on th e subject a rea as
re 1n t ed to th am e ndme nt.
Fr ed Kaufm a n , Ka ufm a n 's Big & Ta ll Me n 's Stor e , 3395 S o u h
Br oad way . He st ated his prope rty wa s no t inc luded in th e dis cu ssion
but wa nted t o add h av ing bee n he ad of th e EDDA , havi ng b e en r e s po nsi ble
f ur brinq i ng in th e develope r , th at as a me rch a n t he f e lt the Brady grou p
was goi ng to treat him f airly beca use he owned his prope r ty and ha pp e ned
to fit i nto th e par am ters of what is env i sioned for the b l ock . Mr .
Kauf ma n stated he wa nt ed wh a t would b e good for t h e community a nd he
t hought othe r me rch ants felt the sam e . Mr . Kaufm a n r eca ll •d the Urb an
R0newa l Authority wa s brought into th e pl a n for onl y on e re aso n a nd th at
was to financ e the projec t .
Leo Len tsc h c ame forward a ni asked if 33 11 Sou th Broadway was
inc l uded . May or Otis st a ted i t was . Mr. Le n tsch sta t ed he d id no t
un d rst a nd why the re we re negotiati ons g o in g on b eca use the proper ty has
not been s old . Mr , Le n tsch stat ed 19 i ndividua ls from the Brady
Co n st ruction Com p a ny ente r e d his building inf o r ming him it was go ing to
be, de stroyed . Mr . Le n tsch st a ted t h is happen e d fi ve tim es i n on e week .
Council Membe r Br adsha w as ked wh at da es thib occurred .
Mr . Le nts ch stated th e l ast on e was t\\'O d ays ago . Mr . Lents ch
s tated people we re not b eing trea ted fairly .
Mr . Paysi nger c 3me f orward to a n s we r qu es t ic,ns . Council Member
Br~dsha~ as k ed w~en h e asked f or the p o s tponement tw o wee ks ago , was i t
h i s intent to d e ] iv0r th e l et t e r at the fin a l hour on t he d ay of t he
hC'.J rin g .
M1. Pa ysing e r st a ted t he i nt ent s·as on c e they ha d fi:,al
apprais a l s they were t o present hem to th e tena n ts . Mr . Pay singe r
st .-:i t'-d th ey hav been nego ti at in g with a ll the t nants for se ve r a l
mon t hs . He st a ted he wan t ed to get th e b st off e r out wh i ch was the f a i r
mr1 r ket val ue o f prop er ty i nte r est . He s t a ted Mr. Br ady did not want to
bu y bu R inesses ; he wa n ted to buy possesso r y int rest , leasehold inte r est ,
a le s s e e 's t ight to p ossession f o r h e t r m of t he l ease , a n d provi de
r e1 o c a t i ons co~ts . Mr . Pa ysin ge r sta t ed Ph y sic a l Whim~ica l at t o rn ys had
ll pr I I 10 , 1 98~
Pagt 6
figur es pri or to tod c1y p u rsu a nt t o t e l ephone con vc i satio n s . Mr .
Pa ysinq ~r stat Pd t he Br ady Corpora ti o n wants th e t~n ~nl s to mo v th e ir
bus i nc ·ss('s t o anot h _r l ocation and eith r sta rt up tHJcdn 01 mo ve t o ;:i
tem 1•o t i1 ry l e.cation a nd comC' b .J c k into Lh e projEct .
Co unc i l Mem ber Brad~ha w que r ied thC' tw o wee k d elay in timing
"-'ilh f i 11c1 l off ers .
Mr . Pa y singer stated it ma y be p rudent to e->:lend t he n ext
hearing until the 30t h so that ev r y b ody h a s mo r e time .
City At torn ey DcWit c asked Mr. Paysi nge r if th l? appraisers would
h av e suf fic ie nt tim e to have information avai ]a b le on the 30th .
Mr . Pays i n ge r s t ated ttu,y h ave b e n assur d b y the appr ais ers
th al lh y wou l d have thes e d oc um e n t s by th e 30th .
Council Mem ber We is t not d th a t Coun cil was not to decide at
this me ti ng w~e th e r or not nego t iation s we re con duct d in good f a ith ; i t
~as up t o the Urb an Rn wal Autl1ori ty to advis e Cou nci l o( this evidence .
Mr . We ist stated e v id e nce h Js b en pr esented th e1 ha s no t been a f ai r
amount o f tim e f o r th t e n dnts to gath e r thei r expert e va luatio n.
Mr . Paysinge r s t a t ed t hP tenants h ave had b~s ica l l y t he s ame
amount of ti me that th ey h ave had to pu thei r ap prais a ls togetner . ~hen
nego ·i~l io ns bega n se ve ral mo nt hs ag o , th e •~n ants could ha ve r e tained an
ap pr v isor fo r t he ir l eas e ho ld inte rest . Mr . Paysing e r stat d there was
c o nf usi on on th pa rt of t he ten ant s in t h a t some of hem feel Mr . Br ady
s hou l d buy a ll interests inc l ude p roj ec ted prof its . Mr . Pa ysi nger st ated
lh Py we r e only pr ov idi ng f ai r marke t va lu e for l easehold interests an~
r e loC'at ion expe n ses .
COUNCIL MEH RER HIGDA Y MOVED TO CON T IKUE THE HEAR I HG UNTIL 7 :00
P .M. ON AP RIL 30 , 1984. Cou :1 C'il Member Br ad shaw s co nd d the mot ion .
Up 'J n a calJ of th e r oll , t he \'Ote r esult e d as f ollo \·:s :
Ay e s :
Nays :
Ab s nt :
Coun cil M~mb0 r s Hi gd a l·, Vo b ejda , ~eist ,
Br ad sha w, Otis .
Non e .
Coun cil MPrrh e r s ~cn l , Bilo .
Thr ~:a yer d0cln r d ( mo tion c n 1r ied .
Apr il J O, 1984
Page 7
COUNCIL MEMBER H!GDAY MOVE D TO CLOSE TH E PUBL I C HEARI NG .
Cou n c il Me mb e r Br a dsh a w s eco nd ed th e mo ti o n. Up on a c a ll o f th e rol l,
th~ v ote r esu lted a s [o llows:
Ay es :
Nays :
Abs e n t:
Cou ncil Memb e r s Hi gd ay , Vo bejda , Weist ,
Bradsh a w, Ot is.
Non e .
Co un c il Membe rs Nea l , e i lo.
The Mayor d e cl a red the mot ion c arried an d adjour n ed th e
meet in g a t 8 : 25 p.m.