HomeMy WebLinkAbout2000 Resolution No. 075RESOLUTION No.'K
SERIES OF 2000
A RESOLUTION SUPPORTING THE DEAL SHEET BETWEEN THE ENGLEWOOD
ENVIltONMENTAL FOUNDATION AND MILLER/WEINGARTEN CONCERNING SPACE
AT THE BALLY BUILDING.
WHEREAS, The Englewood Environmental Foundation was formed to relieve the
burde111 which would otherwise be aaaumed by the City of Englewood, Colorado, in
connection with the environmental remediation, land u,e planning and preparation for
redevelopment of the Cinderella City shopping center; and
WHE REAS, the Englewood Environmental Foundation was formed to provide support for
the redevelopment and enhancement of the City's commercial environment and ia , separate
and diatinct corporation; and
WHEREAS, the City Council of the City of Englewood, Colorado, aupported the Master
Plan propnaed on August 10, 1998 by the Englewood Environmental Foundation;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
ENGLEWOOD, COLORADO, THAT:
Sl:s:ti!m..l. The City Council of the City of Englewood, Colorado, hereby supports the Deal
Sheet between Englewood Environmental Foundation and Miller/Weingarten concerning
space at the Bally building, attached as "Exhibit K .
~ This resolution of support in no way wai ves or delegates the City's regulatory
powers, duties and responsibilitie s with res pe ct to zoning and governmental issues .
ADOPTED AND APPROVED this 21• day of August, 2000 .
1. Loucrishia A. Ellis, Ci ty Clerk foub.,,-C ity of En le w
above is a trUe cop y of Resolut io n No~ Series of 2 .
PARTIES:
LEASED
PUMIBBS:
TRANSACTION
TYPE:
TERM.:
PRICE:
DEAL SHEET
BALLY
Weinprten/MiJ!er/Enilewood LLC . Landlord ("WME") and
lnsiewood Environmental Foundation, [no.
Approximatoly 12,000 square foet on the lint (pound) fioor of the
proposed Bally Building.
Space leue, with one lump aum rental payment paid at the bqinninc
of the lease.
Approximately 75-yean (expiring when the WME Ground Lease
expires).
Th,, price will be actual WM;,,; COit, but not to exceed $690,000.
Actual costa will conailt of l) the actual hard coat and 2) actual soft
coat, computed as follow• (fol'll1.ula necessary since the amount will be
• shued cost for th• entire buildinr):
A. Hard Costs: The "not to exceed" cost includes hard coats
computed on th• basil of th• incremental coat of a 30,000 foot
building vs. a 42,000 foot buildin11. WME has oatimated the
coat of a smaller build.in& at $2.1 million and the larpr building
at $2.6 million (the not to exceed amount also indudel a
contingency of 10% for incomplete design and coata not yet bid.
Aocordinily, if the total cost of the building is $2,775,000 ($2 .6 x
10%) or greater, the hard coat shall be deemed to be $550,000.
If the hard cost of the total buildin11 ii leas than $2,775,000
million. tl.-· "savinp" shall be shared based on a fraction, the
numerator o" which is the square footage of the Leased
Premises an"" t he denominator is the square footage of the total
building. For example, if the ha.rd cost of the building ia $2.6
million, there would be Sli5,000 in savinp. Assuming the
Leases Premises are 12,000 feet and the total buildin& is 42,000
feet, the savings allocated to EEF would be $50 ,000 (12/42 x
S175,000), and the actual coat wou'd be deemed SG00 ,000.
B. Soft Costs: Soft costs consist of architect and engineering
(A&E), de ,elopment fee to WME. legal expense and interest.
1. Th• A&E shall be sh,.red on the same formula (the squere
foottlge in the Leas,1 d Prl?mises vs. the square footage ~
the total building), and shall not exceed $48,000.
2. The deve lopm ent fee shall be 5% of the hard costs.
3. The legal fee ■hall be limited to WME's le('l feea ,nly for
the leue, with regard to the space lease, anu hall not
exceed S15000.
4, lntereot 'aballaccrue at the rate of one-half pen:e~t below
prime, baaed on the amounts advanced from time to time
for construction of the Leased Premileo.
ff
To illuatn.te the calculation of price for the leased premilee, assume the total buildiq actual
coat at $2,600,000, tota!A&E at $168,000, legal fee of $16,000 and interest of $140,000. The
price would be $616,500 (hard cost = $500,000 ; A&E = $48 ,000··$168,000 x 12/42;
development fee" $26,000-6% of $500,000 hard coat; legal= $15,000, the not to exceed
amount; and interest of$40,000 • $140,000xl2/42).
NOTE : Price does not include any tap fees, (any tap fees required u a re1ul1,of
increuing size of building will be obligation ofEEF).
CONDmON OF THE
LEASED PREMISES:
COMPLETION DATE :
CAM CHARGES:
TAXES:
USES:
,\SSIGNMEN'f
AND SUB-!,ET:
WME shall deliver to Ee:'.' the leased premises in the condition
set forth on~-
The Le.ued Premises ahall he delivered to EEF in the ,
condition.B set forth on SlhillilA no later than the outeide date
WME ii required to deliver Bally ita space under the tenna of
the Bally Lease. In the event such delivery date ii later thnn
the eicht (8) month period in the Ground Lease between EEF
and WME, WME shall nevertheless be obligated to pay the
daily amount for delay to EEF as required under the Ground
Lease.
EEF shall pay a pro rata share of the CAM charges (as provided
in the CAM Agreement with WalMart as supplemented by the
Joinder Agreement between EEF and WME , referred to herein
as the "Sito CAM ch"'1'!•"), based upon square footage of the
building. EEF shall also pay a pro•rata charge of any buildinr
CAM coste (i.e. building insurance, utilitie,, taXes [see below],
common maintenance etc.) EEF will provide its own janitorial.
EEF shall have the .~ght to ha ve the Leased Premises
determined to be ta;c exe m pt , and WME shall cooperate with
EEF in obtaining a ~u exemption. To t he extent the Leased
Pn,miaeo are '101 exempt, EEF shall pay a pro rata share of the
n,al estate ta.'"s based upon the square footage of the building.
Cultural Arts, City offices, storage or related City uses, and any
lawful use . provided I) doe• not violate the ECR. and 2) does
not adversely impact the existing retail parkiu5, (but in any
event, such use shall be entitled co not less than 3/1 parking. In
addith>n , in t he event EEF desires to use such space for retail,
such use shall be subject to approval in the same manner as the
City approves first time tena nts in e:oi::cess of 7,000 square feet.
Right to assign or sublet with landlord's consent, which consent
shall not be unn,asonably withheld or delayed. Asaignee or
sublea see s will agree to be bound by terms of lease, includinr
•
MAINTBNANCE
AND RBPAJBS:
DAMAGE;
DES'l'llUCTION;
INSURA?'.L'E :
COMMON ARE-A:
provilioaa relatizit Ill permitted ,-, BEF lhall mlWll
aecoDdarily liable far &II)' financial obliptiona under tile Jaee.
Landlord reoponaible all atblr colll nlaliq to oullida of
premilN (un!Na calllld by lln&Dt) 111d tuant rnpoaaibla filr
all other term, Ullide pnmilM (unJ.o callNd by landlord). In
the evut any l7lleJll (i.e. HVAC) ii iutan.d by Landlord and
llled ucluaivei, by EBF, EEF ahall bo ,-poDlihJe far
maintainin& lvch .,.__ Luullard rwquind to maintain
buildin1 in lint clau condition, and to provide IIIOW r,,movaJ.
Landlord requind to maintain inaurance for full replacement
coat; and required to repair or rebuild in event of caaualty
re1ardlau to whether covered by inaurance (,rill be part of
Builclins CAM charpo). Tenant maintainl inaurance on EEF
and contenta wide premise,, tenant will also maintain liability
inaurance.
Coot to maintain any common areu inaide buildins, if any, will
be part cf the Buildint CAM charses 111d shared pro-rata bued
O!! IC!uart footap.
•
COUNCIL COMMUNICATION
DATE : August 21, 2000 AGENDA ITEM SUBJECT: Support of the Bally
11 cill Lease Agreement for
CityCenter Englewood
INmATED BY: Englewood Environmental STAFF SOURCE: Rick Kahm, Board
Foundation Director, Englewood Environmental
Foundation
PREVIOUS COUNCIL ACTION:
On August 10, 1998, City Council adopted Resolution No. 90 , Series ol 1998 supporting the
Master Plan proposed by the Englewood Environmental Foundation and Miller/Weingarten for
the Cinderella City site .
On November 2, 1998, City Council adopted Resolution No . 101, Series ol 1998 SIJpporting the
sale of property to Wai-Mart by the Englewood Environmental Four.elation (EEF) for the
development of the CityCenter project.
On January 31 , ~000, City Council adopted Resolution Number 4, Series of 2000 supporting
the final agri,ement for the sale of property from the Englewood Environmental Foundation to
Trammel Crow Residential.
RECOMMENDED ACTION:
Staff recommends that Cou ncil adopt a resolution, whi ch supports the lease agreement
between Weingarten/Miller/Englewood LLC and the Englewood Environmental Foundation for
the Baily's build ing in CityCenter Englewood .
BACKGROUND:
On August 4, 2000 EEF and Miller Weingarten closed on the lease of approximately lour acres
of ground !or retail development at CityCenter Englewood . The Bally lease is the first lease to
be brought forward by Miller Weingarten in this phase of the CityCenter development.
FINANCIAL IMPACT:
The proposed Resolution will demonstrate supper! for the EEF and Miller Weingarten as the
CityCenter Englewood moves into its final development phase .
LIST OF ATTACHMENTS:
Proposed Resolut ion