HomeMy WebLinkAbout1987-07-01 EURA MINUTES•
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I.
ENGLEWOOD URBAN RENEWAL AUTHORITY
July 1, 198 7
CALL TO ORDER.
The regular meeting of the Englewood Urban Renewal Authority was called to
order by Chairman Voth at 5:40 P. M.
Members present: Robert Mcintyre, James Tatton, Melvin Minnick, Ruth Cole,
Betty Keena, Robert J. Voth, Susan Van Dyke
Alice Hanson, Alternate Member
Wm. Richard Hinson, Acting Executive Director/Secretary
Members absent: Kristi Daugherty, Alternate Member
Also present: Penny Dietrich, EDDA Executive Director
Paul C. Benedetti, EURA Legal Counsel
Andy Mccown, City Manager
Harold J. Stitt, EURA Assistant to Director
John Pflaum, Mclaughlin Water Engineers
Hal Erickson, Mclaughlin Water Engineers
Phil Hendricks, EDAW
II. APPROVAL OF MINUTES.
June 3, 1987
Chairman Voth stated that the Minutes of June 3, 1987 were to be considered
for approval.
Totton moved:
Minnick seconded: The Minutes of June 3, 1987 be approved as written.
AYES:
NAYS:
ABSENT:
ABSTAIN:
Totton,
None
None
None
VanDyke, Voth, Cole, Keena, Mcintyre, Minnick
The motion carried.
III. LITTLE DRY CREEK -WEST OF BROADWAY
Preliminary Plan Review
Mr. Hinson stated that Mr. John Pflaum of Mclaughlin Water Engineers and Mr.
Phil Hendricks of EDAW are present to review the preliminary plans for Little
Dry Creek west of South Broadway one more time before preparing the final
drawings and putting the project out to bid.
Mr. Pflaum stated that they are well underway on the final design, and will
complete the final drawings during the month of July. Mr. Pflaum discussed
the work that is to be done by RBI under their contract on Little Dry Creek
from Clarkson to Broadway, and by Flatiron Structures under their contract for
the extension of the box culvert west of Broadway. The final phase of the
project, which these preliminary drawings are for, will be put out to bid in
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August, and will be for the area from Broadway west to the box culvert
extension.
Director of Engineering Services Ragland entered the meeting.
Mr. Pflaum stated that the improvements will include a concrete-lined channel,
a lake, and a fabridam at the entrance to the box culvert. There will be
bicycle/hiking trails along the lake, with grass and landscaping along the
slopes to the lake. Mr. Pflaum stated that there will be an access ramp to
permit maintenance vehicles to have access to the pump station and to the
fabridam . Mr. Pflaum discussed the location of the pump station, and the fact
that all water features will be on a separate pumping system --there will be
a pump for the water cascade, for the fountain area, for the plaza area, and
for the water recirculation system. The edge of the lake will be finished
with large boulders grouted into the channel bottom, with a 2'6" level portion
before sloping to the bottom of the lake. This has been developed as a safety
feature, and will have a depth of approximately 18".
Mr. Erickson further discussed the recirculation of the water in the lake
area, and the proposed pumping system. Mr. Erickson stated that the pumping
station will be buried except for the point of access, and the air intake sys-
tem. Chemicals will be used in the system to retard the growth of algae in
the water. The proposed lake will be 8'6" deep at t he maximum point, and ap -
proximately 100 -150 feet wide. There are storm sewer lines which will have
to be relocated and introduced into the box culvert below the lake.
Mr. Minnick asked if the system would use automatic strainers to clean the
water. Mr. Erickson stated they will use a screen and an air cleaning system.
The recirculation of the water and whether there would be sufficient flow was
discussed. Mr. Erickson noted that the Creek does flow 365 days per year, but
the flow may be low at times. Mr. Pflaum stated that the fabridam will main-
tain the lake level within 2" +/-. Mr. Pflaum pointed out there will be a
probe signaling device which will signal the onset of a heavy flow so that the
dam will deflate.
Ms. VanDyke inquired about the life expectancy of the dam. Mr. Erickson
stated that the dam is constructed very similarly to an automobile tire, and
with this particular dam being protected from the sun and hidden from view
which should protect it from vandalism, it should last at least 20 years or
so. Mr. Pflaum stated that the water curtain will hide the box culvert en-
trance, and the dam will be within the culvert entrance .
Mrs. Hanson asked how often the dam was estimated to co l lapse each year. Mr.
Erickson estimated that the dam would collapse once per year, but that during
the first year it could require some adjustment of the probe s i gnaling system.
Mr. Minnick inquired about lighting in the area. Mr. Pflaum s tated that a
lighting plan is being developed along the trail system, and in t he public
areas.
Mr. Tatton expressed concern that the 2'6" level area in the lake was insuffi-
cient, and suggested that this be widened to at least 4 '6". Mr . Pflaum sug -
gested that extending this safety feature more than 3' could impact the
capacity of the lake. Mr . Pflaum discussed the slope between the path and the
lake edge, and emphasized that this would not be a steep slope. Discussion
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ensued. Mrs. Ragland stated that the more shallow water area that is devel-
oped could cause algae problems in the water .
Mr. Minnick inquired as to the type of barricade which would be in place at
the service entrance. Mr. Pflaum stated that they propose to use barrier
posts, which would be lockable and removable.
Mr. Phil Hendricks of EDAW addressed the Authority, and discussed the land-
scaping plan for this portion of Little Dry Creek and the public areas. Ms.
Keena asked if EDAW would be "dictating where the trees will be planted". She
stated that she was aware that the redeveloper is ~oncerned about sight line
to the area and has urged the reduction or elimination of much of the proposed
vegetation. Mr. Hendricks stated that EDAW will be dictating the placement of
the plantings.
Mr. Hendricks then further described the finishing of the plaza area, noting
that the interlocking pavers will be used throughout the public area.
Mr. Ron Myles, Authority negotiating consultant, entered the meeting.
Mr. Hendricks stated that there will be accent lighting along the bike/hike
paths, and the trees will have up-lighting. All landscaping will be automati-
cally irrigated. Mr. Pflaum stated that there is a need to build in
flexibility in the proposed landscaping; for instance, the trees can be deco-
rated with small lights during the holiday season. The plaza is being desig -
ned to require minimal maintenance.
Mrs. Hanson asked if landscaping would be used to buffer the noise from U. S .
285. Mr. Hendricks stated that the plaza and creek improvements are lower
than U. S. 285, and there will be a slight berm which will be landscaped and
help buffer noise, but there is no actual intent to try to landscape to buffer
noise. This would require a very dense landscaping, which is not being
proposed.
Mrs. Hanson asked if a cross section on the pond was available to show the
topography. Mr. Pflaum stated that a cross section is being done a a part of
the bid package.
Mr. Hinson stated that the staff has met with Trammell Crow and representa-
tives of Mclaughlin Water Engineers and EDAW on the visibility issue. A com-
promise has been reached on the type of tree that is being proposed along the
Creek. The typical tree that is now proposed for use is the "umbrella" shaped
tree rather than the columnar shaped tree .
Mrs. Hanson asked if the final design plans would be brought back to the Au-
thority for further review. Mr. Pflaum stated that the final design plans are
being worked on now, with the intent to put the project out to bid in early
August. Mr. Hinson stated that in the past, the final plans have been devel-
oped from the comments elicited from the Authority during the review of the
preliminary plans.
Discussion ensued. Mrs. Keena stated that she could not favor any "slant" of
the sides of the lake. Mr. Pflaum stated that the surface of the ''level"
safety area would be roughed to help in retarding slippage if someone happened
to step into the lake. Mrs. Cole asked if widening the ''level" area to 3'
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would significantly impact the capacity of the lake. Mr. Pflaum stated that
it probably would not at 3' in width.
Ms. Daugherty entered the meeting at 6:30 P.M.
Further discussion on the safety feature ensued. Mr. Voth stated that this
area would not have a large number of young children running around unsuper-
vised as are found in parks and zoos. Further brief discussion ensued.
Keena moved:
VanDyke seconded:
AYES:
NAYS:
ABSENT:
ABSTAIN:
VanDyke,
None
None
None
The Urban Renewal Authority approve the preliminary plans
for Little Dry Creek west of Broadway, and auth-0rize the
drawing of the final plans preparatory to going out to bid
in early August.
Voth, Cole, Keena, Mcintyre, Minnick, Tatton
The motion carried.
IV. TRAMMELL CROW/ROSS INVESTMENT GROUP
Mr. Hinson stated that representatives of Trammell Crow and Ross Investment
Group are present to review the Schedule of Performance, and to give an update
on the leasing activities for the Englewood Marketplace. Mr. Hinson stated
that by Contract, the redeveloper is required to increase the Letter of Credit
to $200,000 once the financing is in place. Staff has received assurance from
the United Bank of Denver that a Letter of Credit in the amount of $200,000
has been mailed to the Authority offices.
Mr. Hackstaff of Ross Investment Group; Messrs. Slack, Baker, and Rothacker of
Trammell Crow, and Ms. Lynda McNeive, Legal Counsel, entered the meeting.
Mr. Rothacker addressed the Authority and summarized the progress that has
been made on the project. The Bank has sent an amendment to the Letter of
Credit to raise it to the required $200,000. They have signed leases with
Child's World and with Pier I Imports. Mr. Rothacker stated that there is a
"small glitch" in the lease with Pier I Imports but this is being negotiated
and they have hopes it will be resolved. Mr. Rothacker discussed the dif-
ficulty they have experienced in obtaining financing in Colorado; they have
obtained their financing from Wells Fargo in California. Mr. Rothacker stated
that it is their intent to close on the purchase of the property during the
third week of July. Englewood Marketplace Associates has been formed, and he
asked that the Amendment to the Development and Disposition Agreement be exe-
cuted as soon as possible.
Mr. Rothacker stated that Pier I has some problems with the plaza and what
they perceive as a inhibition of sight line to their store. Mr. Rothacker
stated that he felt most of those concerns have been mitigated within the last
few days as a result of the meetings with the URA and City staff.
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Mr. Rothacker stated that they would like to get the Preliminary Plans ap-
proved by the Authority before they waive the financing contingency. The re-
d:veloper is asking that the Authority extend the date on the financing con-
tingency to July 15. He emphasized that the extension of the date for the
financing contingency will have no impact on the date of closing, nor on the
completion date for the total project.
Discussion ensued. Ms. Keena stated that the normal procedure is to for a
redeveloper to work with the staff on such matters as amending the Schedule of
Performance and the staff then makes a recommendation to the Authority . Ms.
Keena asked why the people from Trammell Crow and Ross Investment were bring-
ing this to the Authority and not going through the accepted procedures.
Mr. Rothacker stated that they have been working on a "crisis mode". He
stated that the closing was to have occurred on July 15; they are prepared to
close on July 23. Mr. Rothacker stated that things they have been working on
for the last 20 to 30 days did not crystallize until just the last day or two,
and they did not have time go through the procedure with staff. He stated
that staff was informed several weeks ago that they would want to delay the
date of closing.
Mr. Hinson stated that he understands that the three things we are looking at
is the Date of Deed, the Preliminary Plans, and the Finish Date for completion
of the project. This date has not changed. Mr. Hinson pointed out that the
requirements for Preliminary Plans, which were specified in the Agreement,
require much more detail than that contained in the Preliminary Plans which
were submitted by Trammell Crow this evening. Mr. Hinson stated that as he
understands Trammell Crow's method of operation, they secure a tenant and
design buildings to the specifications of the tenant. Apparently, because
the anchor tenants were signed so recently, Trammell Crow could not prepare
the Preliminary Plans as required by the Redevelopment Agreement.
Ms. Keena asked if the Authority could still make whatever changes they wanted
in the Preliminary Plans. Mr. Hinson stated that he felt the Authority had
that right. Mr. Rothacker stated that he would be willing to represent to the
Authority that they will see "basically" what is represented on the drawings
before them this evening. They will do exactly what they have done in other
projects --brick buildings, glass, etc. It will be an attractive
development.
Ms. Keena stated that she was very concerned about the treatment of the rear
of the buildings facing onto Englewood Parkway. Discussion ensued. Mr.
Slack, architect on the project, stated that the Preliminary Plans before the
Authority indicates the location of the structures. The final configurations
of the buildings might change but the general location would remain as it is
indicated on these plans.
Ms. Keena asked how much square footage must be built to meet the minimum re-
quirements for the financing. Mr. Hinson stated that 94,000 square feet is
the minimum area as specified in the Financing Commitment letter.
Mr . Minnick expressed a desire that Child's World and Pier I would be com-
patible with the general type of construction in Trolley Square. He wanted to
see a cohesive development overall, not one that looks piece meal. Mr. Slack
stated that in previous developments done by Trammell Crow, they have tried to
blend in with the surrounding developments.
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Mr. Hinson stated that he has expre~sed concern on the location of the build-
ing at the intersection of the Englewood Parkway and Soijth Cherokee 5tr~et.
This will inhibit a line of traffic flow into and through the En~lewood
Marketplace Development and the Lincor devel0pment to the north and w~;t.
Discussion ensued. Mr. Pflaum stated that elevations for the 500 year flood
v1ere done based on a different site plan and building placement. The pr0posed
building placement in the new site plan will change the flow pattern of flood
waters. He stated that he has not had an opportunity to analyze this proposed
preliminary plan and the impact it will actually have on the flow patterns.
Discussion ensued. Mr. McCown asked why the buil~ing was moved to the proj-
ected intersection of South Cherokee Street and Englewood Parkway .. Mr. Slack
stated that the building was repositioned because of a general change in the
plan. Interest in this particular building has been expressed by two tenants
at this location. Mr. Slack stated that their development cannot take ad-
vantage of the Cherokee intersection, and the orientation of their buildings
to U. S. 285 is of higher priority.
Ms. Keena stated that a lot of the issues that have been raised seem to be
technical in nature, and she feels the Authority should have the benefit of a
recommendation from staff. She suggested that possibly the staff should be
given time to review the plans and formulate a recommendation, and come back
to the board within one week.
Mr. Rothacker stated that the redeveloper is asking for a two week delay in
the financing contingency, and that the preliminary plans be approved before
they waive the financing contingency. It is necessary to get the DOA Amend-
ment signed as soon as possible. Discussion ensued. Mr. Mccown asked why the
15 day delay is needed. Mr. Rothacker stated that they need to make sure that
the design of the plaza is acceptable to Pier I, and they need the plans ap-
proved for the square footage, because the contingency is based on this. Mr.
Mccown asked if there is a possibility that Pier I will walk away from the
lease if the landscaping is not worked out. Mr. Rothacker stated that he felt
there is some risk that this could happen, but he is of the opinion that
everything is pretty much resolved. Mr. Rothacker stated that they do want
the preliminary site plan approved so they can move ahead with further design
and leasing. He reiterated that they are planning to close on the purchase of
the property on July 23.
Discussion ensued. Mr. Baker pointed out that the Schedule of Performance was
initially compiled approximately one year ago.
Mr. Hackstaff asked that Mr. Rothacker restate what the developers are looking
for from the Authority.
Mr. Rothacker stated that:
1) The Assignment of the DOA from Ross Investment Group to Englewood
Marketplace Associates, Ltd. needs to be approved and signed as soon
as possible.
2) The financing contingency needs to be extended to July 15, 1987.
3) The Closing date needs to be changed from July 15 to July 23, 1987.
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Mr. Mcintyre noted that there are seven buildings indicated on the site plan.
He asked if all buildings would be constructed now, or as the leases are
signed. Mr. Rothacker stated that this will have to be considered by Trammell
Crow . They are working on deals for at least three additional structures be-
sides the Child's World and Pier I structures.
Further brief discussion ensued. Mr. Voth thanked the representatives for
attending, and suggested that the Authority go into Executive Session to con-
sider this matter further.
Minnick moved:
Totton seconded: The Urban Renewal Authority go into Executive Session.
AYES: Voth,
None
None
None
Cole, Keena, Mcintyre, Minnick, Totton, VanDyke
NAYS:
ABSENT:
ABSTAIN:
The motion carried.
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Minnick moved:
Keena seconded: The Urban Renewal Authority come out of Executive Session .
AYES: Cole,
None
None
None
Keena, Mcintyre, Minnick, Totton, VanDyke, Voth
NAYS:
ABSENT:
ABSTAIN:
The motion carried.
Discussion ensued on the preliminary plan submitted by Trammell Crow. Mr.
Benedetti cited the requirements for a preliminary plan that are set forth in
the ODA. It was the consensus of the Authority that the plans as submitted by
Trammell Crow do not the requirements of the DOA.
Keena moved:
VanDyke seconded: The
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2)
3)
4)
5)
Urban Renewal Authority agrees to:
Extend the date of waiver of financing contingency to
July 15, 1987.
Remove any and all grace periods.
Preliminary Plans to conform with the ODA shall be
submitted for Authority perusal by August 3, 1987.
Date for closing on the property shall be extended to
July 23, 1987.
Ross Investment Group shall be released from the
contract.
AYES:
NAYS:
Keena, Mcintyre, Minnick, Totton, VanDyke, Voth, Cole
None
ABSENT: None
ABSTAIN: None
The motion carried.
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VanDyke moved:
Minnick seconded: The Urban Renewal Authority direct the staff to convey to
Trammell Crow the dissatisfaction of the Authority with the
positioning of the building designated as "Building E" on
the preliminary plans, and that the building is to be
relocated.
AYES:
NAYS:
Mcintyre, Minnick, Tatton, VanDyke, Voth, Cole, Keena
None
ABSENT: None
ABSTAIN: None
The motion carried.
V. RELOCATION REQUESTS.
MiShell Archuleta
Mr . Hinson stated that MiShell Archuleta has been operating a business at 3485
South Bannock Street for some period of time, and is eligible for relocation
benefits. Ms. Archuleta has submitted a request for relocation expenses to
cover cartage, replacement of obsolete business cards, moving announcements,
storage, and cartage for a second move from storage. The total amount re-
quested by Ms. Archuleta at this time is $2,732.15, and staff recommends ap-
proval of this amount by the Authority.
Tatton moved:
VanDyke seconded:
AYES:
NAYS:
ABSENT:
ABSTAIN:
Minnick,
None
Mcintyre
None
The Urban Renewal Authority approve $2,732.15 in relocation
expenses for MiShell Archuleta.
Tatton, VanDyke, Voth, Cole, Keena
The motion carried.
VI. RELOCATION REQUEST
Joyce Hirsche
Mr. Hinson stated that Ms. Hirsche is the owner of AA Interiors of 211 West
Hampden Avenue, and owner of a rental house at 3463 South Bannock Street. Ms.
Hirsche has submitted a relocation reimbursement request in the amount of
$15,123 .87, which included cartage, packing, a telephone system purchase and
installation, printing, and storage. It is not the policy of the Authority to
pay for purchase of a telephone system, only for installation. Ms. Hirsche
does not have proper documentation for the storage and printing claims, and
these are recommended to be deferred until correct documentation is submitted.
Staff recommends payment of $6,341.50 at this time.
VanDyke moved:
Cole seconded: The Urban Fenewal Authority approve payment of $6341.50 to
Ms. Joyce Hirsche as a partial relocation reimbursement.
AYES:
NAYS:
Tatton, VanDyke, Voth, Cole, Keena, Mcintyre, Minnick
None
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ABSENT: None
ABSTAIN: None
The motion carried.
VII. HAMPDEN/BANNOCK DEMOLITION PROJECT.
Mr. Stitt stated that bids were requested for the demolition of 3455 South
Bannock Street, 3463 South Bannock Street, 3485 South Bannock Street, and 211
West Hampden Avenue. Nine contractors went on the walk through of the proj-
ect, and seven bids were received. Allied Demolition was low bidder at
$12,180. Allied Demolition was awarded the contract to demolish the old
Colorado Tool building on Broadway, and the staff is familiar with the work
they do. Staff recommends awarding the bid for demolition of these four
structures to Allied Demolition.
Totton moved:
Cole seconded: The Urban Renewal Authority award the contract to demolish
the structures at 3455 South Bannock Street, 3463 South
Bannock Street, 3485 South Bannock Street, and 211 West
Hampden to Allied Demolition in the amount of $12,180.00.
AYES: VanDyke,
None
None
None
Voth, Cole, Keena, Mcintyre, Minnick, Totton
NAYS:
ABSENT:
ABSTAIN:
The motion carried .
Mr. Minnick advised the staff to verify that the utilities to these structures
have been cut off. Mr. Stitt stated that all utilities have been or will be
cut off prior to the commencement of demolition.
VIII. FINANCIAL REPORT
Investment Report
Drawdown Report
Expenditure Report
Mr. Hinson reviewed the Financial Reports with the Authority. He noted that
there appears to be an additiQnal $377,000 available to the Authority, but
this will be earmarked for contingencies in court cases yet to be heard.
Mr. Hinson stated that the payoffs of promissory notes on properties previous-
ly owned by Mr. and Mrs. Bell and Mr. and Mrs. Vance occurred earlier on this
date .
The Authority is scheduled to close on the exchange of property with First
Interstate Bank next week.
IX. TRAMMELL CROW
Mr. Benedetti cited additional rev1s1ons that need to be made to the Schedule
of Performance, and problems on the submission and approval of the preliminary
plans within the time frame specified. Discussion ensued. Mr. Hinson stated
that preliminary plans are sent to various departments of the City asking for
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comments and suggestions, and this can take several days. Further discussion
followed.
Keena moved:
VanDyke seconded: The Authority will revise the schedule for submission of
plans by Trammell Crow as follows:
AYES:
NAYS:
ABSENT:
ABSTAIN:
Voth,
None
None
None
1) Preliminary Plans shall be submitted by Trammell Crow
for review by the Authority by August 3, 1987.
2) The Authority will responq to Trammell Crow on approv-
al or disapproval of the plans by August 17, 1987.
3) Trammell Crow will submit the final plans to the Au-
thority for their review by September 1, 1987.
4) The Authority will respond to Trammell Crow on approv-
al or disapproval of the final plans by September 15,
1987.
Cole, Keena, Mcintyre, Minnick, Totton, VanDyke
The motion carried.
x. CONSTRUCTION REPORTS
Randall & Blake
Flatiron Structures
Ms. Ragland reviewed the construction reports on the Little Dry Creek improve-
ment projects. Ms. Ragland also discussed the amenities that were bid as an
alternate for the Logan/U.S. 285 area which have been delayed to an un-
specified time because of budget problems. Ms. Ragland is asking the Authori-
ty to reconsider their previous decision to delay construction of these ameni-
ties, noting that there is still sufficient money in the budget for contingen-
cies. The total projected cost of the amenities is approximately $60,920.
Ms. Ragland stated that the possibility of constructing only part of the
amenities has been discussed with Randall & Blake, and they have indicated
that if only the gazebo is eliminated, they would reduce their contract amount
only by $8,200. Discussion ensued.
It was the consensus of the Authority that the entire alternate bid for ameni-
ties should be deleted from the RBI contract. Ms. Ragland stated that RBI
would landscape the area and install the sprinkler system, inasmuch as the
landscaping portion for the total project was one bid price. She noted that
this could result in additional cost if the Authority were to decide later to
actually construct the wall and sign, and/or the gazebo, because the sod and
plantings would have to be removed, and the sprinkler system could be damaged.
Mr. Minnick suggested that the staff work with the contractor and devise a
sprinkler system plan so that there is a record of the location of the lines,
which could be referred to in the future.
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Members of the Authority strongly opposed inclusion of the construction of the
gazebo, wall, sign and lighting at the Logan/285 site by Randall & Blake, and
agreed that these amenities be deleted from the work this contractor is to do .
Minnick moved:
Keena seconded:
AYES:
NAYS:
ABSENT:
ABSTAIN:
Cole,
None
None
None
The Urban Renewal Authority advise staff that only the
basic bid package awarded to RBI is to be done by that con-
tractor at the South Logan Street/U.S. 285 intersection.
The alternate bid for the gazebo, wall, sign, lighting and
miscellaneous concrete work shall be deleted from the
contract.
Keena, Mcintyre, Minnick, Totton, VanDyke, Voth
The motion carried.
XI. BIDDING OPTIONS
Little Dry Creek West of Broadway
Ms. Ragland presented a memorandum to the Authority setting forth several bid-
ding options for the consideration of the Authority. One option is to select
a contractor and negotiate a price; a second option is to select a limited
number of contractors and ask that they submit bids on the project; a third
option is to advertise asking contractors to submit prequalification state-
ments, and limit the bidding to the prequalified contractors; and a fourth
option is to have open bidding as we have done in the past. She stated that
as a result of conversations she has had with Mclaughlin Water Engineers and
with Mr. Benedetti, she questions whether the first three options cited in the
memo are any better than the open bidding process that has been used. Discus-
sion ensued. It was the general opinion there is a need for more and better
evaluation of the bidding contractors.
XII. OLD KING SOOPER'S BLOCK.
Mr. Hinson stated that the staff has again been in contact with the First Na-
tional Bank of Englewood to try to gain approval for the demolition of the Old
King Sooper's structure, and it appears that the Bank may be listening to the
arguments that the building is a safety hazard. The Bank officers have indi-
cated they are willing to ask the Bank Board to allow demolition under these
conditions: If the Authority closes with Trammell Crow, $450,000 from the
closing will be applied against the outstanding loan principal; or in the
event this closing does not occur, the Authority will pledge Deed of Trust on
the Authority property on the east side of South Acoma Street to further col-
lateralize the loan. Mr. Hinson stated that he is requesting that the Au-
thority authorize payment of the $450,000 from the Trammell Crow closing to
the Bank at time of closing with Lincor Properties (in November, 1987) or to
authorize giving the Bank a Deed of Trust to the property on the east side of
South Acoma Street should the Trammell Crow closing not occur.
Totton moved:
Keena seconded: The Urban Renewal Authority authorize payment of $450,000
to First National Bank in November, 1987, from the proceeds
of the Trammell Crow closing , or to grant to the Bank a
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Deed of Trust on the Authority's vacant land on the east
side of South Acoma Street in the event the closing does •
not occur. These actions are undertaken to write down the
loan on the Old King Sooper's Block and facilitate demoli-
AYES:
NAYS:
ABSENT:
ABSTAIN:
Mcintyre,
None
None
None
The motion carried.
tion of a hazardous structure.
Minnick, Tatton, VanDyke, Voth, Cole, Keena
Mr. Hinson stated that in 1986, a contract was awarded to Hillen Corporation
to demolish all structures on the Old King Sooper's block in the amount of
$65,400.00. The Wyatt's Cafeteria structure and the Texaco Service Station
were demolished, and one-half of the contract price was paid out. Demolition
of the Old King Sooper's building was delayed because of the inability of the
redeveloper of the site to obtain financing and close on the purchase of the
property from the Authority. First National Bank, holder of the note on the
block, would not allow the demolition of the structure. It now appears that
permission to demolish this structure may be forthcoming. Mr. Hinson stated
that he has discussed the potential demolition of the structure with represen-
tatives of Hillen Corporation, and they have indicated that because of the
increase in the cost of insurance and labor costs since the project was ini-
tially bid, they would request an increase of $6,840 in the contract amount.
Staff feels this is a reasonable increase, and would still place the total
contract amount below the next highest bid received at the time the bids were
taken.
Mr. Minnick excused himself from the meeting during the above discussion.
Keena moved:
Tatton seconded: The Urban Renewal Authority approve an increase in the
amount of $6,840 in the contract with Hillen Corporation
for the demolition of the Old King Sooper's building.
AYES:
NAYS:
ABSENT:
ABSTAIN:
Tatton, VanDyke, Voth, Cole, Keena, Mcintyre
None
Minnick
None
The motion carried.
XIII. UPDATE.
Mr. Hinson stated that Key Savings plans to move administrative employees into
the Trolley Square development, and are working on the building for tenant
finish at this time.
Mr. Hinson stated that Mrs. Barbara Holthaus is claiming ownership of part of
Little Dry Creek. An immediate possession hearing is scheduled for July 15.
The Farmer's Market is scheduled to open on July 7.
A building permit has been issued to Rocky Rococo.
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FEMA has indicated they will do the up-stream mapping on Little Dry Creek,
which will result in a savings to the City/Authority of $30,000 to $40,000 .
Mr. Hinson stated that the Authority needs to issue a Certificate of Comple-
tion for the Home Club property, inasmuch as Pennant Properties has done
everything that was required of them in the Contract.
VanDyke moved:
Keena seconded: The Urban Renewal Authority authorize issuance of a Cer-
tificate of Completion to Home Club.
AYES:
NAYS:
Totton, VanDyke, Voth, Cole, Keena, Mcintyre
None
ABSENT: Minnick
ABSTAIN: None
The motion carried.
Mr. Hinson stated that copies of the Linear Assignment and Assumption Agree-
ment were made for the Authority; bound copies will be forth coming when they
are available.
XIV. RESOLUTION #13, SERIES OF 1987.
Mr. Voth stated that the Urban Renewal Authority needs to consider Resolution
#13 , Series of 1987.
Tatton moved:
Keena seconded: The Urban Renewal Authority approve and adopt Resolution
#13, Series of 1987, A RESOLUTION OF THE URBAN RENEWAL AU-
THORITY TO APPOINT WILLIAM RICHARD HINSON AS ACTING SECRE-
TARY AND ACTING EXECUTIVE DIRECTOR OF THE AUTHORITY.
AYES: VanDyke,
None
Minnick
None
Voth, Cole, Keena, Mcintyre, Tatton
NAYS:
ABSENT:
ABSTAIN:
The motion carried.
Mr. Voth stated that he had written a letter to Mr. Hinson regarding his ap-
pointment as the Acting Executive Director/Secretary to the Authority, and
submitted copies of this letter to the members of the Authority .
VanDyke moved:
Keena seconded: The Urban Renewal Authority approve the letter written by
Chairman Voth to Mr. Wm. Richard Hinson regarding his ap-
pointment as Acting Executive Director/Secretary of the
Authority, dated June 9, 1987.
AYES:
NAYS:
Voth, Cole, Keena, Mcintyre, Totton, VanDyke
None
ABSENT: Minnick
ABSTAIN: None
The motion carried .
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Mr. Voth stated that City Manager Mccown had written a letter to the Urban
Renewal Authority members outlining the working relationship for the Authority
administrative staff and the City employees.
Keena moved:
VanDyke seconded: The Urban Renewal Authority approve the memorandum from
City Manager Mccown dated June 15, 1987, outlining the work
relationship for the Urban Renewal Authority administrative
staff with the City.
AYES: Cole, Keena, Mcintyre, Totton, VanDyke, Voth
None ' NAYS:
ABSENT: Minnick
ABSTAIN: None
The motion carried.
There being no further business to come before the Authority, the meeting was
declared adjourned at 9:30 P. M.
~LYi-¥ Gertrude G. Welty 7 ...
Recording Secretary
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