HomeMy WebLinkAbout1999 Resolution No. 100•
RESOLUTION NO . M
SERIES OF 1999
A RESOLUTION ENCOURAGING THE ENGLEWOOD ENVIRONMENTAL
FOUNDATION TO CONCLUDE NEGOTIATIONS WITH TRAMMELL CROW AS THE
RESIDENTIAL DEVELOPER FOR S5 MIWON.
WHEREAS , The Englewood Envir 'mental Foundation wu formed to relieve the
burdens which would othe,wiae be auumed by the City of Englewood, Colorado, in
connection with the environmental nomediation, land uae planning and pn,paration for
redevelopment of the Cinderella City •hopping center; and
WHEREAS, the Englewood Environmental Foundation (EEF) waa formed to provide
support for the redevelopment end enhancement of the City's commercial environment and is
a separate and distinct corporation ; and
WHEREAS, tho City Council of the City ofEnglewood , Colorado , authorized EEF to
conclude negotietlons "for aale" with Legacy as residen~ d~veloper for $4. 76 million dollars
on October 4, 1999; and 1
1
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WHEREAS , EEF negotiated in good faith with Legacy but was unable to come to term•;
and
WHEREAS , Legacy was unwilling to be contractually obligated to close on the property
as requtsteri in February of ZOOO; and
WHEREAS , Legacy and Miller Weinearu,n could not come to terms concerning retail
sp ace on the piazza creating a $400 ,000 dollar reduction in contribution to the project; and
WHEREAS, Legacy did not condition closing upon the closing of Miller Weingaru,n ;
hcwever, it did req uire this term to be part of their due diligence ; and
WHEREAS , EEF gave notice to Legacy Partners that it was going to begin negotiatioo•
with Trammell Crow due to the op et .. erm s that could not be resolved; and
WHEREAS . the Englewood Ci ty Couucil supported EEF's decision to 11egotiate with
Trammell Crow at the same tim e it was negotiating with Legacy Partner , due to the open
terms ; and
WHEREAS. Tramm ell Crow bas advised EEF that they are prepared to meet the terms
requested by EEF and all of the other term s previously set forth with Legacy: and
WHERE AS , the re sidential prod ucts pl anne d by both comp anies are of a simil ar hi gh
qu ality nature:
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, hereby t11COunp1 the
Enslewood En,'UODDlental Foundetion to conclude negotlstione with Trammell C,llw as the
reeidential developer for $5 IDillion
~ This reooluaon of 1upport in no way waiv,1 or deleratea the City'• resuJatory
powere, dutiu and reaponeibilitiea with respect to zoning and governmental illluea .
ADOPTED AND APPROVED this 22nd dey of November, 1999.
~4 r.lao ~&J~
I, Louc:riabia A. Eliia, City Clerk for th• City of Engle ood
above ia a true copy or Reaolution No.&!2 Serie• of 199 .
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COUNCIL CQl1MUNICATION
Data Agendaltam
November 22, 1999
6 bi
11
Subject
Approval of resolution
authorizing Englewood
Environmental Foundation,
Inc . to negotiate with
Trammell Crow Residential
INITIATED BY
Ci Mana er's Office/EEF
STAFF SOURCE
Bob Sim son
COUNCIL GOAL AND PREVIOUS COUNCIL ACTION
City Council has determined that the CityCenter development would include a
residential element. Over the several months , City staff has attempted to secure
a residential developer for the site . On October 4, 1999, City Council authorized
the Englewood Environmental Foundation (EEF) to conclude negotiations with
Legacy Partners , LLC as residential developer st CityCenter Englewood for a
sale price of $4 ,750 ,000. EEF has negotiated in good faith with Legacy but was
unable to come to terms .
RECOMMENDED ACTION
Staff recommends approval of ihe re~olution .
BACKGROUND , ANALYSIS, AND ALTERNATIVES IDENTIFIED
While Legacy has provi ded an excellent product that it is capable of delivering lo
EEF, in attempting to conc lude negotiations with Legacy , the parties have not
been able to come to terms on csrtain key issues . Specifically, Legacy could not
meet the closing date required by EEF , Legacy was unable to come to
satisfactory terms with Miller Weingarten for the retail space on the Piazza,
which in turn negatively impacted the proposed lease price of th~ ,·etail property
bein9 leased by EEF to Miller Weingarten , and Legacy require ,d the closing of
the lease with the retail developer as a due diligence term . Cit>/ Council had
given r=EF the authority to enter into discussions with Trammell Crow Residential
simultaneously to their negotiations with Legacy . Trammell Crow indicated a
willingness to meet the terms that EEF has set with regard to timing , pricing and
closing independent of the ability of the retail developer to close .
EEF has provided notice to Legacy that ~ Is going to enter Into negotiations with
Trammell Crow Realdefttlai. The PllrpOM o/ ttlitl rasolution Is to formally •
a1.1thorlz11 negotiations with Trammell Crow.
FINANCIAL IMPACT
The sale price at which the Trammell Crow closing Is being negotiated Is
$5,000,000 includes the provision that the retail developer would lease the first
floor property on the piazza . The price being negotiated with Legacy was
$4,750,000 and did not Include the retail developer leasing the ground floor
space on the piazza, which would reduce the City's lease amount from the retail
developer by $400,000. ·
LIST OF ATTACHMENTS
Proposed Resolution