HomeMy WebLinkAbout1997 Resolution No. 049•
•
RESOLUTION NO. !1..9..
SERIES OF 1997
A RESOLUTION AUTHORIZING AN iNCENTIVE PAYMENT AGREEMENT
BETWEEN THE FIRST DATA CORPORATION AND THE CITY OF ENGLEWOOD
FOR FIRST DATA'S NEW BUSINESS FACILITY TO BE LOCATED AT 750 WEST
HAMPDEN, IN THE CITY OF ENGLEWOOD , COLORADO.
llci {l)
WHEREAS, pursuant tn the provision.s of Section 31 -15-903, C.R.S., the City has the
authority to negotiate for incentive p1yme;its or credits with taxpayers who establish new
business fr-..cilities or who expand existing business facilities ; and
WHEREAS, pursuant to this legislation , n City and a taxpayer m,.y negotiate a contract
for an incP.ntive payment or a credit from a City to a taxpayer relating to the new or
ex panded business facilities;
NOW , THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
ENGLEWOOD , COLORADO , THAT :
~-The City Council of the City of Englewood, Colorado her eby authorizes the
Incentive Payment Agreement betw een First Data Corporation and the City of Eo glewood ,
attached hereto as "Exhibit 1 " .
ADOPTED AND APPROVED this 21st day of April, 199 7.
I, Loucri shia A. Elli s. City Clerk fo~Jf e Ci ty ofEn glewoort. Colo rado , he reby cemfy the
above is a true copy of Reso lution No.7 , Series of l9~d ~
Louc ri sh ia A. Ell is
•
•
•
ElWIW.T..l
INCENTIVE FAYMENT AGREEMENT
Thia Agreement is en..-.d into by and between Iha City of Englewood of the Cornty of
Aropahoe, State al Colcw2do (" the City") and lntegrLted Payment Systems Inc., a
Delaware Corporalion, a wholly owned subaidiary of First Data Corporation
("Taxpayer").
WHEREAS, pwswm to the provisions of Section 31-15-903, C.R.S., the City bas the
authority to negotiate tmr inoentive payments or credits with taxpayers who establiBh new
business fai:ilities or wbo expand existing business facilities ; and
WHEREAS, pun= to this legislation, a City and a taxpayer may negotiate a contract
for an incentive paymettt or a credit from a City to a taxpayer r•!lating to the new or
e•panded business facilities; and
WHEREAS, the City and the TQ%Pnyer desire to negotiate such a contract.
NOW, THEREFORE, IT IS AGREED by the City of Englewood and the TQ%Payer as
follows :
1. The Taipayer "5tablish a new business facility, as defined in Section 39-22-
508.2(3). C.R.s, but c'1tcluding the requirements or paragraph (b) of said subsection
(3 ), in the City oC EngL,wood . Thia new business facility will be located at 750 West
Hampden, Engle,a·ood, Colorado BOHO . 'J'i ,e purposes and functions oft.bis new
business fa cility lilclude office faciliti e!'=, customer service facilities and data
processing facililme, for check clearing, cnll-handling and money order records
retenhon Y?:rvioes.
2. The Tupayer !.bill comply with all of the provisions of Sections 39-5-107 and 39-5-
108, C.R.S .. =ing the filing of personnl property schedules associated with the
tn,able personu.i ,property located at or within such new business facili ty and used in
co nn ection '9.;u,. the ope rati on of such new business facility .
3. The City shall d orm the Sch oo l Dis trict and County, in which the Taxpayer's new
bus iness facility or ezpa nded bus iness facility is located, of this Agreement. The
Taxpayer shall be res ponsible fo r negotiating separate in centive payment
agreeme n ts witl:i the affect ed Schoo l Di strict a nd County.
4. The City shall a,.ake an annunl in ce ntive pa yment, to the Taxpayer, which payment
s hall equal fifty percent (50%) of the ,mount of truc es levi ed by the City for the City
mill levy u pon the waltl.e ~ lllillWlY loc ated at or within the new business
fa cility and used in connection with th e ope ration of such new bu s in ess fa cility. This
in cenove payn:ent re lates to the tax levied only by th e Ci ty of Eng lewood and not to
an y other tax Lt-"',ed by anoth er taxing en tity .
5. Thi s incentive ~aym ent to th e Taxpayer s h all be made by the City on or abo ut
Septe mber 1. l~9 and each year tt:ereafter fo r fo ur (4 ) ye ars , pr ov id ed th e Taxp ::iyer
has co mplied ..-n.h the provi sions of Section s 39 -5 -107 a nd 39-5-108 C .R.S .. and
pr0\1 ded. the !1!.rpayer h as paid an d is the refo re not delinqu ent in th e payment of its
property taJ:eo ,See Exhi bit Al
6. The City shall provide a rebate to Fint Data Corp. in the amount. af S8, 750 .00 for uae
taxes paid by Fi'8t Data Corp. for building materials.
7. The City shall waiv e or rebate a maximum of $17,500.00 in aallsluae tu on
equipment purchased for the 750 Hampden Center location. !!le City aales/use tax on
equipment ia S.5 %.
8. Prior to any payment, the Taxpayer shall invoice the City for ,be incentive payment
and provide the Cit-; with any docum entation dee med necessary lby the City to meet the
requirements of this Agreement.
9 . If the Taypayer should fail to meet its cap ital investment obliprtions set forth in
Exhibit A during any period of the Agreement the Taxpayer sbwl reimburse the Ci ty
for all amounts it has benefited under this Agreement.
10. Th e •rrurpayer s hall not ass ign or transfer its interest in this ~ment without the
written co nsent of the City . Any unauthorized assignm ent or mmofer shall render
this Agreement null , void an d of not effect as to the City.
11 . Thi s Agreement may nut be modified, amend ed or otherwise zltered unless mutually
agreed upon in writing hr the parties h ereto.
12. Either party may terminate this Agreement with er without g,,,:,d cause shown upon 30
days written notice to the other party prior to term. nation. In die ,,-,.,1 of termination
by the City, no damages, liquidated or otherwise, sball it:m,, tc, th• oe!lefit of the
Taxpnyer.
13. Un less otherwise agreed in writir,c, this Agreement and the i:::rterpmation thereof
shall be gove rned by the laws of th e State of Co lorado .
14. Sh ould any provision of this Agree ment be determined by a cr.=t of competent
jurisdiction to be unconstitutional or otherwisr: null and void.. it is the intent of th e
parties hereto that the remainin g provis ions of this Agreemect shall be of full forc e
anrl effect .
15. Notices to be provi d"d und er this Agreement shal l be given i::, writing wither by hand
delive ry, or depositea in the United States mail , certified IJL'.Cl.. retmn receip t
req ues ted , with sufficient postage, to the fo ll owing persons:
City of Englewood
Attn : City Manager
3400 Sou th Elali Street
En glewood , Co lorn do 80110
-3-
First Data C.:rrpor.1000
Attn: Leisi:i D . '.'ielson
6200 South Q:,ebec
Engl ewood. Colorado 8011 1
•
•
•
•
•
16. This Agreement repre.en&a the eotlnt &lid interraled agreement between the parue,,
and supenedes all prior negotiation., and r epresentati, ,a whether written or oral.
Nothing h erein shall be deemed to create any contractulll rolationahip, either eirpre••
or implied, between and any other conaultant or contractor or material supplier •o th o
City ofEn&lewood. Nothing here.in shall be deemed to give anyone not a party te this
Agr,,ement uy right of action agaimt a party which does ~ot otherwise exist wit hout
regard t,, this Agreement.
ATTEST: FIRST DATA CORPORATION
By :-------------Titl e: ____________ _
Al'TEST : CITY OF ENGLE WOOD
Loucrishia A. Ellis, City Clerk
By:
Thoma., J. Burns, M..yor
-4-
EXIDBni"A" •
FIRST DATA COIIJ'OJlATION
INCENTIVE -50 PERCE!lrl' DEDUCJ'ION IN PERSONAL PROPERTY TAX
CA PITAL YEA!l ACTlJAL ASSESS TAXABI.E "MIU. TAXES INCENTIV E
INVESTMENT VALUE RATE VAL UE LEVY DUE GIV EN
I 15.lOO.IXXl 29" Sl .ffl,(Q) ".663 m .m $6,111 CoDlllltnetmc:N
11 1198
15,.500.IXX> 29 5 sr.m .lXX> ,.66.l s1 2.m $6,111
J U • .500.000 29 5 s r.m.lXX> 1.66.l Sl2,222 $6,11 1
4 15.lOO IXXl 29 S s1 .m.coo j.f,63 s1 2.m $6,111 Eioin.don: 911noo2
' S24 445
12.590,IXX> by
buildina owner
(building CXIC·
rior and me-
charucali m-
nrovcme nul
1830.IXX> by
First Da ta
Corp .
(Leasehold
lmorove mcnu 1
15,l00 .000"
Equipme nt Firsl
D111Co ro. • I
18.920.IXX> I
I
•
•
•
•
COUNCIL COMMUNieA'IllQN
DATE: April 21, 1997 AGENDA ITEM SUBJECT: Oo;ni Dcvelopm:,m
and First Data Corp . Busines.s
11 C i ( l) & ( 2 ) Investment Agreements
lNITIATED BY: Neighborhood & Bu siness STAFF SOURCE: An Scibelli , Bu.sines:.
Devel opment Department Comm unity Coordinator
COUNCIL GOAL AND PREVIOUS COUNCIL ACTION:
City Council has established Economic Development and Quality of Life in Englewood as
goals .
A Council Srudy Se ss ion on Janu ary 13 , 1997 was he ld on this issue. No other formal actioo
has been taken .
RECOMMENDED ACTION:
Staff recommend s that City Council review, and t pprove the business agreements for Omni
Developmeor Corp . and First Data Corp . as submitted .
BACKGROUND. ANALYSIS. AND ALTERNATIVES IDENTIFIED :
n~sed on city business invesrrr.ent policies , staff has prepared the following agreements as th,ey
appl y to Omni De ve lopment an~ Firs t Data Corp.
The rede velop ment of Hampd en Center by Omni Development and Fir st Data Corp . was iru-
riall y discussed in study session on Janu ary 13. 1997. Please see auached ba•:kground memo
10 City Council dared January 8, 1997 . The agreements fo r these two entities are als o at -
tached. The Ag reement s are exactly th e same as presented at the stud y sessio n January 13 .
1997
FINANCIAL IMPACT Of REQUf,ST;
Omni Developmen! Ccrp .
First Data Corp.
Cost to Citv
$ 8,750.
1..llfil..
$17,500.
$24 ,445 .
$17,500.
il1.ill.,.
$50 ,695 .
~ J))
Building material use tax waiver
Landscape match
Personal property asse ssment rebate
over 4 years .
Use tax personal property
Building material use tax waiver
Benefit to Citv : 1bis development is a catalyst for redevelopment of the neighboring area .
The city will rece ive S36,575 in building materials from Omni Development use taxes
The initial 138 emplo:!'CCS a1 tbe facility will provide indirect benefits to the City , including
enhanced sales w: from patronage by employees of local restaurants and other service estab-
lishments .
LIST OF ATIAC.IDIENTS:
• Agreemem : Erst Oat.a Corp .
• Agreement : 0mm Developmem
• January 8, 1997 Background Memo to Cou nc il : re Firs1 Data Corp .
• Lener fr om Arapalloe County confirming County Personal Prope rty \\.' ,iver ($47,253)
• N~vember 27 , 1996 letter fr om City confirming City commitmt,1ts to First Data Corp .
• Det~mber 20 . 1996 lene r fr om First Data reque stin g building use tax waiver
• Janu1 ry IO . 1997 Je ner fro m Firn Data requ es 1ing equi pment ta x wa ive r ($1 67,500 based
on $5 .0 million oi equipmelll)
2
•
•
•
•
•
l!. ..
MEMORANDUM
TO: Mayor Thomas J. Bums
Members of the Englewood City CoUllCi
THROUGH: Doug Clark. City Manager
Roben Simpson. Di=ror of :-leighborhood & Busux.ss J)e,;e!opmem
FROM: Arthur Scfbelli . Bu ,·=~ Co=lity Coordimwr fr
DATE: January 8, 1997
SlllJECT: !'irn Data Corp ./Wesiem Union. Hampden Cemer ~opmcm
This me:no is m= to serve as background for an Economic Devel= MODosal fonh-
cominIT on the JanllllIY 20" regular m~ting age:ida. · • •
For tht· past fo ur moruhs. the Ofiic: of '.'ie:g.ilbcrhood and Business De-.'C!opmem bas main-
tained a -lialogue with Imermoumain P:irmC:'3 . the co nsulting firm reptt!Se!Jting FtISt Dm
Corp .. a company which has been considering several locations in the De::ive= Metropoliran
Are:i fo r a major data proc:ssing fudity .
PROPOSAL: The Cicy AIIOrney is pre;,w.ng an agr=r.m for your =ici=rion ar the
January 20• Council m~ting to address the following:
I. P:rsonal Properry Ta.,; rebate over four -y = period (mirrors A,apahoe Coumy agre:-
ment).
Z. Building Materials Use Ta.,; Waiver for building owner and le:ise:io lder (FDC).
3. P:rsonal Property (equipmem) Use Tu Waiver .
&1!.0IT Ifil'. COMPANY :
Firn Daxa Corp . moved to Colorado in 1970. ks Colorado workfare: ::iegan with roughly 200
employ= and has grown to more than :.000. Ar the time . Firn Dao.. one of the nation · s
leading proc:ssors of t:ransacrions. was a divis ion of American E.-tpress . It has siDce become a
II I ·; / I! I/ l II
54 billion, iDdepe:ldem public company , whose lll>clc is traded on the New York SIOCk fa.
c!mge. In 1995. Firn Data acquired Wcsu::u UDiSJI in its merger with Firn Financial Corp.,
mi bas. moved Wes= Union 's beadquartm w Colorado. Firs: Data Corp . bas divested
money ;ram -a mone-; order/check proc:ssing facility in Lllccwood.
JACJ:GROUND:
Rampcic C=r. at 750 West Hampden AvC!IIIC. bas bcel1 the £nilcwood locarica 1lllder cou;
sm:amm. Initially . 70.000 square feet oi the 156.000 square foot building would be used for
W= Union mone y order retenrioniproc:ssing servic:s and incoming custome~ service
piwne c:i=uni~~tions . The site is aaractive w ihe company for se.,eral re~ons :
i'urure square footage e:cpansion (nationally, the company bas a 20% atlDllal growth
:ate).
b) Location adjac::n to rede veloping Cindc::!la Cirv site . The restaurant and service es-
:abiishmems proposed are exc:lle:11 cJmple:nema.-y uses for office deve!opmem.
CJ Location adjac..-m to the proposed RTD site.
Jus: pr.or to Thanksgiving , Business Dcve!oprne:n Coordinator Art Scibelli and City Manager
Doug Carle me: with re;,rcsemativcs of both Im::.noum:ain Parme::s and Firn Data Corp. At
!i::.I :i=. the City agr=i to request a Pe::sonal ~percy Ta.,: (equipmcm) 50% R.:bate AF-· = t;:,m Anpahoe County spanning four ycm. The Fim Data Corp . was also informed
ti:2I a slmilar request would be made before the E:lglewood City Council . Ente::prise Zone ta,,: •
c:-::im znd !raining opportunirics were also exre:uied to the company at this time. (See at-
~ ~r oi '.'lovem.ber 17 to Firn Data Col?.)
T~ p=onal prope:ty ta.,; proposal was su bmine:: to Arapahoe Coumy and approved . It totals
~-,2;; ove: fo ur years . The City of Eng lewo od proposal totals approltimate'y S~.000 for
ct: = period . (See proposed agreemcm . l
Oi: D=be: 20 . 1996 . a subsequcn request fo r re!iei on building material and pe::sooal
pr;,pe:zy use ta.'t was rece ived from First Data Corp . (See De::embcr 20 . 1996 E::s, Data
C.,-rp . !=r.)
:-.~-JOBS / PAYROLL/EXPA .. 'ISION /Ctj>!HL IN•"ESDIENT:
F:.-s. Dm. Corp . prop oses to re!ccatc 90 emp io yees from the Lakewood facility . and ac'ti '18
o...-,; :u:-:s at Hampde::i C:mer fo r 1 total of · . .:8 .iew jobs in Englewo od. Toe oeed for an ad-
di::ona: :'aciliry was a:iggered due to the growth in the company 's data proc:ssing ind cust omer
se:--ic: :ipe:::i tions in suppo rt of irs fas , growing paymeru instruments business .
P:-o,=_. ~ew Hire s Tor.a l ':;:rn i2vme:'lt ~
1997 : 48 l:8 $6.02i .:9i
!998. 40 n Si,187,686
l?99: 40 21 8 SS .267 ,340
2000 : 40 2.18 S9 ,42::?.6 58
:
•
• 70,000 initial Sqauefoocaac:
•i.-.PomllalcmrS,-a: JQIID-ID.OQl>llldllial~.a..
• Temi of Flffl Dua Corp. Lease
• Leasebold Improvemcms Capiia1 l'.nvestmalt by Fim Da1a Corp.:
• Pfflonal Property Equipml:m Capiia1 l'.nvc:stm:m:
• Hampden Cemi:r Buildmg Improvem= BuiJdm& Os!Er:
(primarily exterior. mccbaoical and adjac:m pmjng IOls)
lOyem
$830,000
$5,500,000
$2,590,000
• ~ ~ Inc=scd property valuation wtll r=lt in e."tpandcd propeny laX
revenues to tbc Cicy after buiJding improvem= u: compl=d .
• 13::nlll E;rnendjtures : Expendinlie of payrolls or pmtions tllcreof will positively impact
Englewood's economy .
• ~ ~ ~: lu:developmem oc:::ipi=s iniiially 45 % of a major office com-
plex vacam and deteriorating for the past seven yc:m. lu:developmcm results in abaremem
of asbestos within =· Additionally. thc po=ial exists to oc::upy the emire build-
ing .
• ~ f2r redevejopmem Qf Cindere!!a !J!y: A ~ capirol invesimem in redevel-
opment of a property adjac..-m to Cil!derella City will _provide an importam catalyst for an-
ticipated redevelopment at thc Cinde::ella City siie..
\-.: ... ._w6-ar,..-.L.dOI
5334 South Pr ince Street• u meton , Colorado 80166-000 1
OFF ICE OF THE COUNTY ATTORNEY
Katl,rl;n L Schrctdor , County Attornay
J a nua ry 27, 1997
Ec~c=able Themas J. au_-:1s, Mayor
C~:y of Englewo od
340 0 South Elati s:=e e~
2:glewoo d, Colorado 80110-2300
C=. Ro s coe Davidson , Supe=incenCe~~
2-:glewood Sc~ool Di sc=icc
4:0 : Souc~ Baranock St=eec
2:g:ewood, Colorado 801 10
P•.1rsuanc co t:le p=ov:.s.:.ons a: Section 30 -:1-123 C .?...S., c::.e
2ca== of CotL~cy C=mm.:'..ss:.one=s c: F-=a;ahoe Coi.:..~ty did ence= into a=.
==:enc:.ve PayTl'ler:c Ag:::eemenc wi::: =ega=C. to Inceg:::-aceC Paym e=.:
Systems , Inc. (a whcll y owne':: s~s.:.C:.:'..a=--t o : Fi=sc Data Cor;,o=a-
t~~n ), a new b~s.:'..~ess c~ be locaceC a : 750 We s t Eampcien Ave .. A.s
se: f o r:~:~ c~e a::ac~eC ag:::eeme~:, ::le C~u..~:y w.:'..11 make an ar-~~a:
~=-ce~t~v e payme~c bes:.~.ni~s :.~ 1999. As f u=:he::: requ..:'..:::eC by :::e
~cve-noteC s~at:~:e , c~.:.s le~:e= shall be t~e County's no c.:.ce c:
t:'_:s a~:-eeme!::.
t~~f-~~ ~en:: ~.-usn, v =.
ACm:::.:.s-:=ac:.ve Deput:y .l.::cr:iey
x-· A.:-:~u:-sc:=e:::
NU lt:IJ
•
•
•
C IT y If ElGLEWOOD
ar~1c: o= H: ,;◄J)111tcJo ":.: 3:.is 1~:11 C!·,:;.1J,M:,~~
Nova~ :; . 1996
F:m Dae Corn .
L:isia D. Ne!s~n. Dir=or
6Z!J0 Saum Que::e:: Ser=
.E:lg!c-;vooci. CO 80 lll
Der Ms . Nelson:
It -:vas 1 ?i= =-'..Ilg .riI::. ;rcu oc =i: ::cr::i=g :: :-iov c:::ii:~ :5. 1996 .o disc-.i.ss F= Dm
Cor;:.·s ;-ro~e=ve ~ m ~ :--Z?' ofE=glewccC is 1 :u.f-~ 3ire.
:".=se :ie assur::i chat tile ~CG :iffic: ;if Bur..= Deve:cp= is ;;olIIIItiIIcd .o P=ini
the I=::!:ve Paymem . .i.gr= rm..:ici ~.:ai ;,rope:-:y ta.'t rebau:s wim tile .~ailce
C.."=f C.JJIIIIIissio= on F:o: Dara Cot;!. ·s ::etai:.
C1lr 06:: will al.so assist in =:::g Z!l':' mi ill S= of Coior:ido ~.se Zone c::-'..its
tim :=s: :Jara COI? i~ e•;~-oie :c. ·,e. ?'=a.ily . = Jf'..c: will assist in !r.iiratin'.; tI'lilliDg
:::cr.s for F= Coro . =:-Jit5 :n ;;i=: ii:= lS: Sc.:cc i :o C=, T.oe Bas'.!: P:inc:nies bl die
Wcri::br..: Coune. ~ re;;:.;..;□i _-'..r-' :c:: ~ :!..-:e:optta. •
. .1..-:::u: Sc:be!li
3~~ Commmri,; C.::o r'..il:a!cr
•
C: ~ Gi.a.ss-...:m. I=:,rc-. =.:::. ;:-.,__s :::: ..
Dcug C:.at!t. ::ig!ewocc. C;.y y(a:;:a<;-.
~c~ Simpson. Mamg,:: :i :-;~cc
md 3usiI!l:ss De-,elopm=
I
FJJt<;J'
DATA
CORP.
~ :•1u...,uwr.,,.,..,...,,
~v-.,-, ""
Deccmbc-20, I 996
.-YtSc=bdli
C"l!y of Englewood
j4()() S. Elati Street
E:iglewood, co 80 11 0-2300
De:irArt:
I :q:pre'"'..= the sttppon :md :issis:anr: you and the Ciiy ofE:,giewood are providm; lii the
FOPOsad redlvelopmm proj~ As has bell! discllSl&d,'" m Sll!aDI mimm::a a Nlid"in
two spe:ific IICS. First, any war-= off= ond Cl>SIS moc:arcd will! pcmc. pla =-rirw, mi
~ tIX is specifically ~ Sllugill by FDC .
S=nd. widi a praposed Februa:y large! daie, assiS1mlCI! in expe:iling any ~ is
~;neti. It is c:itical that we k:ep this mievelo pm= on :ia:kill cm= :xi m= ~-
11 :s :mpon.nr for tu City to be :iw= :Im :DC ha, bimi a =c-.ar. Nar,,.ay C=m=on,
wno will be providing loan! finim won. on our bf.ml!. FDC. !lilt the builiilna ow=. i,
:cpom1oie for this work :llld will br impac".td by tile fees and c:istS previously c!i=c::..
Yo ur assi:.= is grcstl y ~
Sinc::rely .
t.6siaD.Ndson
Dim::t,r, Fac:'Jity S,=vic:,;
:..'iiss •
•
•
Janl!JU:' , 199 i
Mr .. .\rthta Scfoe!li
City ofE.c.slewood
3400 So~ .Elari Street
Engiewooo. CO 801 I0-:?300
De:ir .-'-.r.:
lilill l :i 1997
We a;:,:,='.aie your ongoing o.ssistance on be:ialf of the Ciry of Englewood re3arriing our proje::
whiQ =~ as a :edevelocment c:ual yst in your community
During :he :mild~ut of our t-~s:!.iry , ,._., will purc:we and rake po ssession of approximaie!y S5.5
millioo -...-cr:-.h oi :iew equipme~t. FDC is seeking a sal es tax abate:nent on these pun::wes .
Relief :.s =~ar:, ·ue to the tremendous amount of investment FDC is making in the building
to fin:.sii it= ior oc:upaoc:,-. We would appn.::ate :,ou ?ursuing this abatement on our behalf
anti ra::ni :=:idy to assist you in an y way .
i look :Ortlit :o ~..ng fron: you and :ippr:::iate yo ur 1r.::irion to chis mane:.
Sinc=:y.
L>i/ss