HomeMy WebLinkAbout1984-04-24 (Special) Meeting MinutesSPEC IAL MF.ETlNG :
COUN C IL CHA MBERS
City ol :nglewood , Colorado
April 24 , 1984
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The City Council ol thP City ol Engl ewood , Arapa ho e County ,
Colorado , met i n special s ssion on April 2 4 , 19R4 , at 5 :30 p .m.
Mayor Otis , presiding , called t he me e ting to order .
The invocation was qivtn by Co uncil Membe r Higd ay . The pledge
of a!legia nc was l ed by Ma yor Otis .
Mayor Otis asked for roll cal l. Upon a c a ll of the roll , the
fol l owi ng were present :
Council Membe1s Higday , Nea l , Vobejda , ~cist , Bile , Br a dshaw ,
Otis .
Absent : No ne .
The Mayor dec l ared a quorum pr esent .
Also pr sent wet Ci y Manage r HcCown
City Attorney Olsen
Assis ta n t City Manage r Va rg a s
Oir ec or of Community Dev~lopment Powets
Deputy City Clerk Owen
yor o•is stated th e pur pose ol th meeting wa s to consider an
amendm e n , :o the p arking lease in th 3300 block ol Sout h hCOma Street .
City At t orney o· pn st ated they have b en finalizing
negotia tions with Bruce L2acon , th e a ttorney represent ing Brady
Ent erp ris es on the le a se . Agreemen~ was r eachf'd wi'"h reg a rd to all t ),e
changes excep for one r e l a ting to ass ign ab il ity ol the lease , and Mr.
Deaco n wa s to fin d out what the ir rosition would be . Mr . Ol s en noted Mr .
Dea con was not y t pres e nt and t ccorrmenaca aJjou1n:ng until he ar r iv~d .
Council Membe r Higd ay s ated this wa s th• second meeting where
starting has been d l ay d . Mr . Hi<Jday a sked 1-'r. ,. !sen to remind the
Brady peopl to be punctual in the future .
Council Member NLal asked wh ~l we r e th L changes .
City Attorn y Olsen sat cl tnc ]~as
m0a ning[ul authotity to objc c·t to th0 ass ignm
did not giv e Council
11 •. Hru dy 's propos a l was
llp1il 24 , 1 qu 4
Pa<1c-2
t ha t t h0y wou l d h d ve t he r i ght to ossign t h e 100s al a n y tim t o a n w
parr y whi c h mea n t th roy no long e r would h ave a ny ob] 1g a tion to th !' Ci ty . ,
Mr . Ol se n ad\'iS e d Co uncil th y (Council) should h ave total co ntrol as he
l a ndlord t o who i t would be ass i g n d .
Counc1 l Memb f'r Ne.1 1 sta t ed ano ther i ssue wa ~ th r es olution o f
thC'rt; ha\'i n some su b!jlan inl ig ht t o r ene w th li"ase a ft 1 2 0 y ear s a n d
ask dhow th o t was r eso lv d .
City llttorney Olsrn s t atrd Co un ci l was goi ng o b as ked t o
appr ove a 15 year l ease w1lh a 5 yca 1 rene ~al up to a 20 y e~r limit ation
a ff o r ded b y the Ch a rt er . Then Br ady would s eek a ri ght t o pur chase th
pa rc e l . The provision sought the righ t of r efusa l if af ter 20 y ea rs th e
Cou n cil soug ht to l e ase it t o someon e e ls e . Th e terms would b e to ld t o
Brady who would have the r ight t o ma ch it .
Co un cil Me mber Bilo as k ed if the r ight to purchase wa s an
op tio n .
City Attor ney Olsen s at0d it was ~n option .
Counc i l Memb er Nea l asked if that was a n ou ri9ht opti on or an
opt ion conti ngent upo n a futur Counc il de clining tr r new .
City Atto rn ey Olse n st a ted it wou ld be an outr ig h op tion to
s ell not to le ase . Mr. Olsen noted the ar ti \'al of Mr . De acon .
Bruce Deaco n , a tto rn ey ~ith Calkins , ~rame r, Gr im~h aw & Ha rr in g ,
representing S . Bud Br ady , c ame f0rwPrd . Mr . Dea con tr &ns mi ted t he
r v i sed le a se . Mr . Deacon stated ch a nge s were n.ade t o provide th a t t he
d eve loper had the a b ili ty to b e t h e r e for app r oxima tel y 15 y ea rs plus one
r ene wa l term so the maximum im e th e deve l oper cou l d be th ere w it ho u t
g et t i ng fur the r cons ent fr om the City wa s 20 y ear s . Mr . Brady wo uld glee
not i ce to t he City 9 0 day s b e fore the e nd of th e cur r n t rene wa l t er~,
and then th ~ C ity would have 1 5 days a fter th at to eithe r c onsP n or nGt .
I[ the City did not r espond the renewa l period would go int o ef f ect . 1'.
~he C1 y r espond d ne gatively th P r enew a l p e r io~ would ~ot go into
effect which would trig ger an o p po rtun i y [or the tenan to purchase th~
prop cty at f air ma rk et va lu r .
Counc il Mem1'e r Wc>i st asked if a t t he end of 20 yea rs wo uld t h,
l nsc a lso b e at f ai r ma rk e t v alur 01 be a c on t inua ti on of th e t erms of
th, firs t.
Mr . DPac on stated c ontinu a ion o[ t he term s which was t he
1ni t1al amoun t , then th e f a i r market v~lu0 ad justments a l 4 1 r at every
four y i1r s the CP l i ncr eases .
Ap 1 i I 24 , 19 8 4
Pag ,• 3
Mr . Dene-o n d isc u ssed ho w de ter min a ti on of f a ir ma rket va lu e
wou l d bl' ~o n d ucted . Ii <' di scussed te r ms of right of first r e f u sal. He
s t 11 t <.•d th e r was a p r ovi sion of indemni t y from th e t e na n t jn f av o r of th e
l u ndlo r d . Mr . Deaco n di s c uss d l h0 Jc1ng ua g e of r e nt b i ng pa i d in adv;inc .
Ci y Ti tto rn ry Ol sen no t r-1 a ch r11HJe h wanted on pag 3 pa r ag r a ph
H , t n t h l i n do wn by i ns e r t i n g th e w 0 ...... ~ "o ff er " nfte r "l ea s e ".
Ci t y Attor ney Ols e n stated he had a c o ncer n o n p age 2 , pa r dg r aph
F , i l appeared to be an a ut omat i c r e ne wa l if t h Cit y did not act wi th in
15 days . That was oo sh o r t of t i mP fo r a mun ic ipa l ity t o ma k e a cru cial
dec i s i o n . Mr . O sen sa t ed f u r t h r it sho u l d not be a u t omati c .
l t was Lh conse ns ~s that a 30-da y p e r iod be al l owed a n d Cou n cil wou l d r spe n d .
City At o r ncy Olse n s t a t ed th er we r e tw o o t her it e ms . On e
r l aLpd to whe t h e r or no. th e Cou nc i l wa nt ed t o cr eat e t h ri gh t for
Brady to purcha s e aft r 20 y ea r s wh ich wou ld b e i rr e s e r v si b le . The
s cond co nc ern was t h e assign a b i lity c la us e .
Mr . Deac o n s a t ed if the Ci ty gr a n ted t h e d eve l ope r t o r ene w ,
the n no purch ase o pt io n c a me up un l ess t h e City wa s d ea ling with a thi r d
p rty . There f o r e it di d no t mean au t omat i ca lly a f t e r 20 y ea r s t he re wa s
an a ut oma ic purcha s right . The r e was o nl y a pu r cha s e rig ht i f the Ci t y d c l in ed to let t h e d ev elop r r e n e w.
Counci l Member Nea l seated g iving Br ad y th e r ight to purch a s e
tht• p rop rty in 2 0 yea r s at f c3ll ma r k t va lue gu a r a n t e ed t o t he c it i z ens
thal t '1 e y wou l d rec•iv e> t h e fu l. mark et va lu e fo r th a t hnd . The key
itP m was tha t the v al u e of th ~ Jto u nd b pre se rved fo r t h e c i ti z ens '
b n<'fi ; if n o t th e lan d the n ,,-,:, d oll a rs a s well a s groc e r y s t o r e , p a r k in g , etc .
""'ritten . Mr . Neal s tat d h e wa s comf or tab l e w it h the as s i g nm e n t c lau s e as
City At torney Ol s n s tated '.he essi g nme n t cl a us e as p r es e nt e~
p 0 r mit d Brady to assig n t h l e as to a n e n t ity 1,,:hi c h Co un c i l wo u ]C1 h ave
n0 co~ 1 0 1 o~ct the s e l€c ti on o t h r ~han thr o ugh th g e n era l zon i n
pr ovisions . M1 . Olsen advi s ed Cou nc il of hav in g veto po we r o v e r an y assi nmt.·nl .
r--·r . DC'Mco n gnvc argum t for k ec-pi n g t he la n guage a s is . Mr .
D neon s t ated the assignee wou l d have t o comply ~it h the cu rrent l ea s e an d with zon i ntJ .
April 2 4 , 1 984
PngE-
Cou ncil Meinbcr Nea l c ilu t ioned r est r ict ing
a n d as k ed if comp romis e l fl n g uary e> C"OUld b r int10duc
Council Mc-mb r NC'a l sugg sted ) imili ng the time in
be: assignc•d .
May or Ot i s d c)ar{•d a r e c ess i:ll 6:50 r .m.
7 :00 p .m. Mc:yor Otis asY.~rJ f o t r ol l C"'c-11 1 . Up c!1 a
fol l owin were pres e nt :
th e ass i g nmc nt c l i:i usc ,
d ;i ~ this m eling .
which t he l e a s<' rou l cl I
Coun c il r c on v ened a t
ca l l of th< t oll , lhc
Co uncil Member Higday , Ne a l, Vob(·j d a , Weist , B i lo , BL a dsha v,,
Otis .
Ab sent : No ne .
Th e M~y or de cla r ed a quo ru m pr es nt .
Mr . Ddaco n st a ted he pr o pose d to a l t e r the l a n _u a g e s o the Ctty
had t he co nsent r ight with respe ct to an assign e who wns no t a n n i t y
o f which Bu d Br ady wa s a ge nera l pa r t ne r or ha d subst a nti a l own rs h ip
inte r sl . Mr. Deac on stateJ th e la n g uage wou l d r ead i n p a r ag r a p h 11 ,
:o urt h line down "T e n an s h a ll n ot as sign (excPpt p u r su a nt t o p a r1 9 r a p h R
(fi nanci ng) a ll of its ri g hts a s tenant under th i s rou nd l ea s e with ou t
the p ri or written c onse n t of the l a nd lor d , whi ch c o ns Pn t 5 hal l not
unre aso nab l y d l a yed ''; an d Mr . Deacon st d t e d l he r e st r e rr a1 n ·d as
wr i tt en .
Mr . Olsen as ked Mr . Dea co n if he was ngre eing th ~t Ccti n c il woulri
ha ve 1n ess e nc e bla nke t auth o rit y to appro ve fin as si gn er .
M1 . Dea con stated th a t was c o rre c t .
COLI NCIL MEMBER H!GDAY MOVE D THAT TII F C lTY O< I\C:L fl,C\OD APPRO l/f.
THE GR OUND LEAS E MADE vi!TH s . BUD BRA DY . Cou n ~i I r-:~rrb, I Pt ansoa w
s eco n ded the motion .
COUNC IL MEMBER HIGDAY ;',OVEn TO IIM EKr> n 11 PI .C:: J ~FC TI C\1' H , LI?::::
10 , BY ADDING 11 OFFER '1 BETWEE t: 11 LCAS !:." AN :) "1"'1.1!" I t\ Tli/!.':" S f t\TE NC E ; AK D or:
PAGE 2 , SECTIO!, F. CHANGE 1 5 DAYS T O 'O DAYS ; 0 !; p;,Gr O SFCT I C\11 11 , Fir'.·;•
LI ~:E DOWN STRIKE 11 \.-:JTH HELD OR". Cou?1cil Mc;nb\.t Br aC1~"-.a 1,,; s~ron(u;:d t he
mo tion . Upon a c a ll of t he r o ll , t he-vo t e on t hC" ?.:-• n~rrrnt r esu lt d a c;
f ::,l l O l<S :
~.yes :
Na ys :
Co un ci l Mr•n.h l r!--1~1r.ri .. y , r:._ d , \l ob('lc~.1 , V,1£•is t ,
Bi lo , Br cid s hc:v.•, Vt lS .
Non .
I
I
Apri l 24 , 1984
PagC' 5
Coun~il Member Weist st ated he would a ppro ve the l ease if it
wu ' timed differently . Mr. Weist prefer r ed considerat ion after all of
th te nant s' l eases in thP former Herzog prop rty w~re sctl1ed and after
furth e r clarificati on of the direction of the d eve lopment .
Upon a c a ll of th e roll , the vol e on the original moti o n
r s uited as f ,llows:
Ayes: Council Member s Higd ay , Nea l, Vobejda ,
Bilo , Br adshaw , Otis.
Nay s: Counci l Member Wei st.
The Mayo r d ec l a r e d the moti o n carried .
COU~CIL MEMBER HIGDAY MOVED TO ADJOURN .
Mayor Otis adjourned the me eti ng without a vote at 7 :10 p .m.