HomeMy WebLinkAbout1990 Resolution No. 0040
RESOLUTION NO • ..!I__
Seri es of 1990
A RESOLUTION AMENDING THE GENERAL FUND I 990 BUDGET.
WHEREAS, the City Council of the City of Englewood, Colorado, desires
to make funds available to the Englewood Urban Renewal Authority for the
acquisition of those properties;
WHEREAS, the Englewood Urban Renewal Authority has ~egot1ated the
purchase of certain property ut11 ized for tho improvements to stre~ts in the
Urban Renew a 1 area and;
WHEREAS, these properties will be deeded to the City of Englewood;
NOW, THEREFORE, BE IT RESOLVED, by the City Counc 11 of the City of
Englewood, Colorado, as ,'ollows:
Section I. The following transfer of funds is hereby made from the
General Fiiiiatotlie Englewood Urban Renewal Authority Fund:
Source of Funds
Genera 1 Fund Fund Ba lance
~ation of Funds
EURA-Land Purchase
$338,000
$330,000
Section 2. The City Manager and Director of Finance are hereby
authorizedtomiie the above changes to the 1990 Budget of the City of
Englewood.
I, Patrich H. Crow, City Clerk of the City of Englewood, Colorado,
do hereby certify th.,t the above and foregoing is a true, accurate and
complete copy of Resolution N~. -4-, Series of 1990.
~Cro(/.&~
J
w '.
I"'
C IT,
e: Ir-;---~
V') -·
1-1;:'r-::';;===-=====r-~;"""'
)"'
DAT!
January 15, 1990
INITIATED BY
STAPF SOURCE
IS~O!/ACTION ROPOS!D
COUNCIL COMKUNIC.I.TION
AGENDA ITEM
11 (b)
SUBJECT EURA Acquisition of
First National Banlt
Property for Englewood Pnrkva:•.
Englewood Urban Renewal Authority
Rich ard S. Wanush, Exe cutive Director of EURA
The EURA acquisition of a 21,267 square foot parcel of bnd from First Nationd Bank
has been in condemnation proceedings since 1984 . Staff has made an offer of
$500,000 for settlement and the offer was accepted. Ila are requesting that the City
Council approve the transfer of $337,830 to the EURA to add to the $162,170 already C
committed !D that the t ransaction can be consummated . 1
FR!VIOUS COUNCIL ACTI~~
The City Council has adopted and approved Urban Renewal Plans from 1982 through
1985 . These approvals permitted the EURA to exercise its eminent domain authority
in carrying out the approved plans .
In January of 1989, the EURA presented the issues surrou1'11ng this proceeding in
study session and requested that the City Council authorize up to $600,000 for the
settlement of this case . The Counc il was reluctant to specify a number since it
could influence negotiations . Council did, however, pledge its support to any
reasonable settlement.
STAFF ANALYSIS
Tho EURA acquired use of a 21,267 square foot portion of tho First National Bank
property for Englewood Par;cway and requited turning lanos . (See attached map.)
This acquisitfnn eliminated 49 parking spaces on tho First National Bank lot . \/bile
the EURA made use of tho land and an eminent domain action was filed in 1984, the
EUii:\ never acquired title to the property.
The EURA' s original intention was to straighten Hampden Place ao that the
intersection with South Elati Street would be moved further from U.S. 285. The City
Hall site would Lhen have bean redeveloped and a new City Hall located elaewhere .
The lar,d made available from straightenb,g Hampden Place vould then be traded for
tho land taken from First National Bank.
0
Sub11quently , downtown development plans changed and di11cu1aion1 regarding the land
exchange wore put on hold, 'With potentially large legal feH in a condemnation
proceeding , there was no motivation to proceed ,
We have recently reopened negotiation• with CleveTru ■t , the party reap o n ■ible for
following through on the condemnation proceedings . Since we could no longer
guarantee the City Hall site, a straight land exchange was out of the que ■tion.
Apprahala wore done on both aides and ranged from oura of $315,000 to theira of
approximately $1 ,200,000. Because of costs of condemnation proceedings and the
uncertainty of the out come, CleveTrust and staff have agreed to a price of $500,000,
Since the EURA has already deposited the sum of $162,170 with the Court, an
additional $337 ,830 is needed to consummate tho deal. Tho EURA has no available
funds of its own, and is requesting that the City transfer $337,830 to tho EURA.
Since we could not guarantee to CleveTrust that we would vacate the existing City
Hall site within any given time frame, we proposed that any agreement exclude any
langu age relating to a land trade. It was our feeling that any agreement should be
final, without contingencies . It 1s difficult to anticipate problems that may arise
over time so it is generally wise to come to a conclusion. Also, if the City did
decide tc relocate and make the land available fo r development there would be more
land.
CleveTrust responded by saying that they wanted "exchange" language in the agreement
that would give them an option to purchase an equivalent amour.t of Ci ty land g the
City Hall were to relocate . In addition, they would pay tho same amount ($500 ,000)
we paid for their land minus the cost of constructing a parking lot. We agreed to
forward this proposal to Council if the cost of the parking lot were borne by them .
They agreed .
I have already pointed ov_t some negative aspects to agreeing to "contingencies".
There are also the following positive aspects:
1. The agreement is only for five years . It has a definite end .
2 , We would vacate a portion of Hampden Place first, then t r ansfer the land to
CleveTrust . Half of the vacation would revert to the City which would then
become part of the approximately 21,267 square feet that would be sold .
3 . We will receive more money for the land than if it were sold at market
value . (Assuming relatively stable land values over the next five years.)
4 . Moving the intersection at Hampden Place and South Ela ti Street further
north helps mitigate a current traffic problem .
BACKGROUND
See Staff Analyaia .
The total cost of the property 1s $500,000 , Since $162,170 1a available from the
\.,_) EURA , the City need• to transfer $337,830 to the EURA ,