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HomeMy WebLinkAbout1998 Resolution No. 100• • RF.SOLUTION NO. !!f2. SERIES OF 1998 A RESOLUTION SUPPORTING THE MAS'l'RR DEVELOPMENT AGREEME ~ T PROPOSED BY ·THE ENGLEWOOD K.""\lllO NMENTAL FOUNDATION AND MILLER/WEINGARTEN FOR THE RHDEVELOPMENT OF THE CINDERELLA CITY SITE. WHEREAS, the Englewood Environmenw Foundation w.,, fwmed to relie,a , •• , burdens which would otherwise be a88urned by the Ci,;y ofEnglewoon .lorado in connection wi th the environm ental remediation , l.i.nd use pl.ailmng and prep b. · ti on for de ve lopment of the Cind erella City shopping ce nter ; and WHEREAS, the Englewood Environm£ntal Foundation was formed to provide s uppor t for the red evelopment and enhanc ement of the Caty's comme rcial environme nt and is a separate and distinct co rporation ; and WHEREAS, the City Council of the C,cy of E nglewood , Co lorado support<d t h e Master Plan proposed on August 10, 1998 by w En&iewood Envcronmental Foundation and Miller/Weingarten for the redevelopment of 11,e Cinderella City site; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF E~;GLF.W OOD , COLORADO . THAT: ~-The City C,,uncil of the Cuy ol Lnglewood , Co lorado hereby supports the Mast \.-Development Agreement be nr.:ee:o the Englewood Environm ental Foundation and Miller Veingarten for the redevelop men d t,e Cinderella City site, attached hereto as "Exhibit A". ~. Thi s resolution s uppon. m :m .-.ay waives or delegates the City's regulatory pow ers , duties and responsibilities wtth respect to zoning and gove rnme ntal issues. ADOPTED AND APPROVE D tlw! 2"" of :'<ovember . 1998 . I. Loucrishi a A. Ellfa . City C.:erk fo'ith, ,·o:, of Englewooc. Colo rado. hereby ce rtify the ,So.,"•""'""""'"'"'"""-• . S<oo o< ,~ ~(/4J ucri shi a A . Elli s •· • • COUNCIL COMMUNICATION Date Agenda Item Subject Resolution supporting the Master Development Agreement between Miller/ W~ingarten and th& Englewood Envf ronmentP.l Foundation - November 2 , 1998 11 Ci Clndereii~ City Redevelopment Initiated By Slaff Source Bob Simpson , Director I Englewood Envi ronmental F~ .. i:id 1tion En•Jie wood Environmental Foundation COUNCIL GOAL AND PREVIOUS COUNCIL ACTION City Council has made Cinderella City redevelopment the City's top priority for the past eight years. During the past 18 months , the Council has supported th e transit oriented development concept. The project concept and developer responsibilities have been the to pic of many Council meetings. RECOMMENDED ACTION Staff recommends that Council approve the resolu tio n to autho, 12.e En3lewood Environmental Foundation (EEF) to enter into a long term lease of the identified property with MillerM ein garten (VM) Development. (See attached agreement and map.) BACKGROUND, ANALYSIS, AND ALTERNATIVES IDENTIFIED The deal sheet sets forth the major provisions cl the fo rmal Developer Agreement between M/W and the EEF. With the Agreement , The Englewood Env ironmental Foundation will continue to own the sub ject property and under the terms of the Master Deve lope r Agreement, EEF transfers responsibilities and risk for property development to the Master Developer. The Master Developer Agreement includes five majo r elements. 1. Describes M/W responsibilities for deve loping the land and building on -si te , and off-s ite infrastructure. 2. Provides. authority and resp onsibility for assembling land consistent wit h the approved Master Plan . 3 . Des ignates responsibility for building the reta il project. 4 . Provides deta il s about the 75 -yea r ground lease with reta il "go dark" provisi on s. 5 . Includes a short -term option for the develope r, M/Vv , to lease and develop Phase II prope rt ies at market rate . FINANCIAL IMPACT This agreement establishes the pr'ce fo r the property lease at $10 million wi th closi ng on December 29, 1898 . LIST OF ATTACHMENTS Proposed Re sol ution Agreement Map •· • • Part! .. : Prapa,ty Dellnltlon: Transaction Type: Price: Closi119 Date: Phue II Option: Mamrdnwloper Obligations: DEAL SHEET I devo,per Developfflell~ ,i\grNment Erglnood Town Can1ar Project Octobw21,1991 Cly,_ Englewood. Colorado rcity"), Engtewood Environmental FOl6ldllian ("EEF') and Miner Weingarten Realty LLC ("7 11 I ;a,aloper") 1. Pa-eels held for retail deve lopment by Miller Wetngarten (parcels snown ui b!ue on attaehed map) 2. P¥king shared by all owners as provideo in reciprocal eaeement (p,ltcns or area shown in green on attached map) 3. f>.n:e!s to be sold to Wal-Mart (parcels shown in orange on attached map) 4 . Pan:als to be leased/purchased to Forest City (parcels Shown in red an altil<:hed map) Ground lease to M/W with rights to use common area parking subject to redprocal easement and CAM Agreement. 75 .,ear ground lease to M/W with go dark provision $ !0,000.000 due at clesing on December 29. 1998 Oe0!mber 29 . 1998 Mesardeveloper granted Option tc · ~uire on lease terms simliar to the acqusilion of the Phase I properties. the surplus lands owned by the City adj-,t to Englewood Pa1'1<Way between EJati and Cherokee Streets. hereafter referred !:i as ·111e Phase II properties". Option expires July 1. 2000. and must be exerc,sed between 1/1/2000 and 711/2000 . Acquisi- tion i;ox:e is fa ir market value for retail use at the time of exercise of the ~~ ,..asterdevefoper development rights are limtttd to retail on the p-operty. Crty has the right to discuss with other developers or users and ~emative uses on a back up bas is. t . EEi" contracts with M/W as Masler Developer to complete s~e per approved Master Plan and in accordance with plans and specs to be utu.lly agreed upon . M/W contract wtth guaranteed maximum price and cost savings to be shared . M/W responsible for all cost 011erruns, except costs re lated to demolition or resulting from change ., SC<lpe requested by C,ty (whieh will be change order ttems paid by City) Redfrvlopment or Foley Bldg . a Cay Hall adud9d from •• ~ 111d Cly -.. ~ far tiL 2. Comp111e "" NqUltldfl:• ~ n1 oll'llla • * ••itWOIII- PllljeCI 111,d will~ City t'lllr ■ Ill d.-~ on pacalt3jjii ol comp1911Dn lpplltd III budget amount 3. Fulftll obl igations under RTO contract to build !rand facility and pllkingflpec:n 4 . FulfiU obl1gation1 under atr'I future RTtl c:onnc alt:Qinad far pn,jlld enhanc.ament l\inda (asaumes fund, from RTD orbn Olhef' IOUfces -not MatetOeve!Oper-are sufflc:ient 10 n..r oblgadonl) 5. Perlormance dates for conslNction and pllased C3eirvr, to be set by performance schedule to be attac:,ect as sc!'lt0IR IO 0ewtopment Agre9ment . including : a. Roads b. Utilities c. Tranart . Plaza and Boulevard d. Parking Lots a"ll1 Slr\Jctures e. Parcels to be de!Mlred to Wal-Mart and Forest City 6. Offs,tes to be completed by Master Developer • a. Englewood Paricway , induding CherotcN lnlllr1U!ion b. EiatiStreet c. Traffic Signals d. Inca-to be completed J01ntly by EEF and M/W, •with EEF to be reimbursed for Hs cost based on ~ of completion and budget line fer work done to date 7. Ccmp lele purchase cf Goldmine site as prcvided · existing Option Agreement . and incorporate 11!• in ptejeCI per plan. 8. Signed lease w,th cinema operator for multiplex theah!r (wrth dosing contingency) by December 15, 1S98 9. Complete ccn5tructicn (C .O.) of no less than 200,000 sf ot rwtail sp~ce by date(s) set forth in performance ~. &ubjecl to ~ ~. with penalty of $3 ,000 dally for delay . 10, Construct,cn and nominal lease of 20 ,000 sf r~ rooftop and connecting pedestrian ~ridge to Museum of Outccor Arts n so requ"st•d by City b)' · .~vember 2, 1998 . Museum of Outdoor Arts to be responsib le for inc.--:::,,enta l coat fer re inforced rcof top and cost cf bridge . Bridge subject to capatat:o,ty with he,gnt at retad building . • 2 • • • EEF Obligaticns: 11 . City CDU1Cil IPP!O'(alfor rttlll lllNSC11 spec:et largerthan 7,000 If on the flm :/me leased, and ,paces gl9lllr lhlll 75,000 If for the durall9n d the project. 12. Oeveloc,ment adheres to Cily approved Delign Standards and Guidelines for the Project. 13. Accept property ·as ii", but dtmolltlon co mpleted to stage per specs to be mutually determined . 14. Casualty and liability insurance to be obtained by WW. 15. Masterdelleloper to indemn ify Eel' and City for ci11m 1 (including i,nvironmental) arising from worl< done by M/W . 16. Obtain City consent for genera ! C0r.lrlctor-M-W hll engaged Waner Construciion/Saunders Conatrudlon a, Its General Contr'Jdcr 17. 1'ake ove r zon in; or any other pem11tting prcces:i aa the applica nt (1f not then comp l~ed) as cf date of mutual execution er Development Agreement 18. Negcbate in good faith (wrth City representatrve parttc,paton as City determines) parking ava il.lb11ity on site and costs for off site parcels (Chud< E Cheese and Banks). 19. Join in CAM Agreement. 20. In the event Maste rdevEloper mat£, ·"f de faults on projed , follow ing notice and right to cure . E:F has right to term in ate Oeve lcpme ot Agreement and to take over project C;ty issues COP yielding net proceeds suffic ient lo comi~ete redevelopment or Foley Bldg . and to fund City 's cont ri bution for the project 2. City redeve lops Foley Bldg . as Civic C;>nter Bldg per performance schedu le. 3. EEF de li vers site to M/W, with demolition co mplete and partial fill , per agreed upo n specs and tme per performance schedule . 4 . City ad opts Des ign Guid eli nes per schedu le of performance (ea t November 15, 1998). 5. City prov ides land needed for Englewood Parkway per performance schedu le e. EEF complll8I ,.........._., cantracr 11y Oecember29, 11191 ·• requmg ~ cla, I ; • J~ • willl no llu lllan 275 raidential..,. • .._ «1,000 rid ... .,,. nail and CllfflfflStial -IO be~ per pe,fom•ICI liCNdla (NI . .lint 1. 2000) 7. EFF c:omplelel Sale Agr--.1 wilh Wal-Matt wilh cloaong on or priorlllo-nber29, 19N. 8, C!ty and EEF join in CAM~ 9. EEF ret.aina de-<eloprnenl "ljjjD an Selbe P..-ce l and pamng are~ no,tt, fJI Raidlnlial. ~Cllr canlinues lo make miiallle m.mbar of paning apaca llarlai ali&ling davelopmer.t pet' approved Maler Plan and atr canlrad conwnilments with Theater andoelllll'lananlloruaers. 10 Manage disblnemem frcm =-rudion fund for project, including coope,21ion in l)tecassing o:a.s lft:m COP ~ and RTO or other grants . Funds distursed per . .;ustcma,y con5tn:ction draw procedUNS. 11 City don not waive ;.>,et 1Uc■1 ital dnmunities. dlAin and responsi bi lities Contract Contlngencin: • 1. Close Wal-Mart sale en or 0l!ltlr1! Closing Date 2. Development A;reement wi!b IWldel'ltiaJ ClevelOper (specmc perfo,mance ocntract wrth r.cnrefur.dable deposit) on er before Closing Date 3. Closing COP on or t:em <:-.g Date Eihibita to be Completad 1. Master Plan 2. Construe: j on Plans and Si::e::fic;alions 3. Property m~p-<0mmon area and aselsa le parcels 4. ProJed Budget Profo rma 5. Project Performa nce Sct-edl.ue 6. Cash llow-consrruC!lon ccs:: •che-:u le 7. PUD and Design Guide lin~ 8. RTO Contract with Cit)' cl :.~iewccd 9. Go ldmine Purchase Op~cn • •• TOTAL PAGE .005 •• Master P .'an: Ownership Plan !Gill~D['IUOftll.VI' DAfflOl1>il'll'MAIOnW:n '-""""""""""" KEY: n ed by Engkoood f r,,.,,datw,, Co1111J10n Arta R,ta,..,,, bi· tht FDtindolion • Dnrhptd by Mil/tr Ir ...ig.,tm o..,d by Engbood f """"'4ii,,, UIUtd by Mi/1,r u-""l- • (),.,d by Engbr»J Frmmdon.n Leased by Fomt Ci!'f Y,llw. O•~•d by Engbood F,111ndolion - l-fftd b;Wa/Mor1 mhptd by Mi/1,r W. igl111111 .""1,/1