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HomeMy WebLinkAbout1987-10-07 EURA MINUTES• • • I. LENGLEWOOD URBAN RENEWAL AUTHORITY October 7, 1987 CALL TO ORDER. qb The regular meeting of the Englewood Ur ban Renewal Authority was called to order at 5:40 P.M. by Vice-Chairperson Ruth Cole. Members present: VanDyke, Cole, Keena, Totton Hanson, Alternate Member Hinson, Acting Executive Director Members absent: Voth, Mcintyre, Minnick Daugherty, Alternate Member Also present: City Manager Mccown Harold J. Stitt, Assistant to EURA Director Neil Lillard, Lillard & Clark Phil Hendricks, EDAW Penny Dietrich, EDDA Executive Director II. APPROVAL OF MINUTES. September 2, 1987 Mrs. Cole stated that the Minutes of September 2, 1987 were to be considered for approval. Keena moved: VanDyke seconded: The Minutes of September 2, 1987 be approved as written. AYES: NAYS: ABSENT: ABSTAIN: Cole, Keena, Totton, VanDyke None Voth, Mcintyre, Minnick None The motion carried. III. OLD KING SOOPER'S DEMOLITION Change Order Mr. Hinson stated that when the specifications for the demolition of the Old King Sooper's structure were written, certain assumptions had to be made be- cause there were no construction drawings available for reference. These as- sumptions pertained to the wall depths, and the manner in which the building was constructed over the Little Dry Creek conduit. The contractor's bid was based on these assumptions. However, when the demolition crew got on the site and involved in the actual demolition work, it was determined that the walls were much deeper than assumed, and that there was an extensive network of walls around and over the box conduit. This necessitated a lot of "handwork" on the job with jackhammers to accomplish the demolition without damaging the box conduit. Hillen Corporation, the demolition contractor, has submitted a change order to the contract, asking for an additional $7,362.50 for expenses incurred on this phase of the demolition. City engineering staff monitored - 1 - the work, and verified the use of the on-site equipment and labor hours; however, the overhead rate charged by the contractor was 25%, and the City and Authority have used only 15% overhead on previous jobs. Therefore, the staff • has recommended payment of $6,640.10. Brief discussion ensued. Totton moved: VanOyke seconded: The Urban Renewal Authority approve the Change Order to the contract with Hillen Corporation on the Old King Sooper's Demolition, and authorize payment of $6,640.10 as recommen- ded by staff. AYES: NAYS: ABSENT: ABSTAIN: Cole, Keena, Totton, VanDyke None Mcintyre, Minnick, Voth None The motion carried. IV. LITTLE DRY CREEK CONSTRUCTION CONTRACT Phase II Ms. Oensel Ragland, Director of Engineering Services, Mr. John Pflaum and Mr. William Taggart of Mclaughlin Water Engineers, and Mr. Hal Erickson of EDAW, entered the meeting. Mr. Hinson stated that bids were opened on October 1 for construction on the • final phase of Little Dry Creek improvements in the downtown area. Mr. Minnick entered the meeting at 5:45 P.M. Mr. Hinson stated that the low bid was submitted by Lillard & Clark in the amount of $2,869,447.79. Estimates from Mclaughlin Water Engineers was in the amount of $2,676,794.80. Mr. Hinson stated that the staff has done an analy- sis of revenues and expenses which the Authority can anticipate, and discussed the various budgetary breakdowns which the staff has presented to the Authori- ty. Mr. Hinson stated that the funds available, based on the current esti- mates, are below the low bid which was received. The City Administration is looking into funds which may be available, and Mr. Hinson has talked to Mr. Bell of E. F. Hutton regarding the possible restructuring of the bond debt. Mr. Hinson stated that the staff is not asking the Authority to make a deci- sion on awarding the contract at this meeting; this, in fact, cannot be done until alternatives on financing and the scope of the project have been more fully explored. Mr. Hinson outlined various alternatives in the construction of the project for the Authority's consideration. Mr. Taggart, of Mclaughlin Water Engineers, stated that they have studied the project further to determine wherein expenses might be reduced. Some of the possibilities include the use of roughed, colored concrete rather than sand- stone along some of the water walls, the simplification of the Broadway foun- tain and the elimination of one pump line, the elimination of a plaza and ar-• bor at Broadway, the elimination of the Acoma fountain. Another possibility - 2 - • • • is to reduce the landscaping that was proposed in the area of the Acoma foun- tain, and to seed the sloped area with native grasses, and reduce or eliminate the uplighting on the cascade and trees. Another possibility would be to re- duce the size of the fabridam, and reduce the size and depth of the lake. This would increase the amount of fall for the water curtain over the box con- duit entrance. Mr. Taggart stated that they do not have firm figures on a savings if the size of the fabridam were to be reduced. Ms. VanDyke asked if the lake would and fountain were to be eliminated. monetarily by eliminating the Acoma lake. have to be lowered if the Acoma water wall Is there a great deal to be gained f ealures and lowering the depth of the Mr. Totton suggested moving the water wall in, making a smaller plaza at Aco- ma, and keep the lake at the same depth. Ms. Keena asked if the lake were to be decreased in size and depth, how would the box culvert entrance be handled. Mr. Taggart stated that one pump would be eliminated, the depth of the lake lowered, and the fall of the water curtain over the box culvert would be increased. Ms. VanDyke asked if, in the future, it would be possible to increase the depth of the lake when the monetary situation improves. Ms. Keena stated that as she understands the discussion, to increase the depth of the lake the fabridam would have to be replaced, because the smaller fabridam results in the lowering of the lake depth. Ms. Daugherty entered the meeting at 6:20 P.M. Ms. Cole asked if, with the reduced size of the dam, there would be an ade- quate supply of water to keep water in the water features. Mr. Taggart stated that there should be a sufficient supply of water, and they will keep a recy- cling system and provide chemical treatment system to combat the growth of algae, because the reduced depth of the lake will promote faster algae development. Ms. VanDyke asked about the width of the lakes under the new proposal. Mr. Taggart estimated a reduction of about 25 ft. in width. Ms. Keena asked what the bottom line cost would be if everything were · to be eliminated by the lakes and the greenery; what would the cost be to "hide the black hole" and do flood control measures. Ms. Ragland pointed out that some of the greatest cost is affiliated with the pump station, which is needed for the water curtain over the box culvert entrance. Mr. Taggart estimated a cost of 1.6 to 1.8 million. Ms. Keena asked if the staff had been in contact with Trammell Crow regarding the possible change in design on this phase of the improvements. Mr. Hinson stated that Trammell Crow has been told in the past there would be a plaza, and they have brought several tenants by to look at the plans for the improve- ments. He has not been in contact with Trammell Crow since the bids were opened on October 1. -3 - Ms. Keena asked if the 2.9 million bid amount included a contingency fund. services is over and above the 2.9 million base bid amount. Mr. Hinson stated that the contingency amount and the amount for inspections • Ms. Keena asked if the staff had checked references on the low bidder, and determined whether comparable jobs have been done by this contractor. Mr. Taggart stated that his firm has worked with Lillard & Clark on several jobs, and they have done good work on all those projects. Ms. VanDyke stated that the original design for the Little Dry Creek improve- ments is a one-of-a-kind in the Denver Metro area, and that she has been told it will provide great potential to Englewood if constructed as originally designed. She asked that this concept be taken into consideration before too much is cut out of the project. Mr. Hinson stated that the staff and consultants have tried to present a ''worst case scenario" to the Authority for their consideration. The staff and city administration are exploring the possibility of obtaining additional funds to enable the construction of the improvements as specified in the bid. Mr. Hinson stated that he hoped the staff would have the additional informa- tion on financing within the next couple of weeks, and advised the Authority that there will probably be a special meeting called to consider the issue further. Mr. Tatton stated that he would like to see a breakdown showing the hard con- struction costs separately from the engineering costs for drawing the specifications and revisions. Mr. Taggart stated that Mclaughlin does ask permission of the Authority to • work with Lillard & Clark on items wherein the cost might be reduced. Ms. Ragland stated that this is an awkward situation, because Lillard & Clark have not been awarded the bid. The possibility of totally rejecting all bids and readvertising for new bids was considered. Mr. Mccown suggested that the Authority might want to consider approving the request of Mclaughlin Water Engineers to work with Lillard & Clark, but to make it clear that no commitment on the award of the bid is made at this time. Mr. Lillard stated that he would work with Mclaughlin representatives, and that he did have some ideas of possible cost reduction for the project. Minnick moved: Totton seconded: The Urban Renewal Authority hereby authorizes Mclaughlin Water Engineers to negotiate with Lillard & Clark on cost estimates and reduction for the Little Dry Creek project, with the clear understanding that the Authority in no way commits to the award of the construction bid to Lillard & Clark at this point in time. AYES: NAYS: ABSENT: ABSTAIN: Keena, Minnick, Tatton, VanDyke, Cole None Mcintyre, Voth None - 4 - • • • • The motion carried . v. LINCOR PROPERTIES OF COLORADO, INC. Amendment to Agreement Mr. Hinson introduced Ms. Mary Anne Shube of Linear Properties of Colorado to the Authority. Mr. Hinson stated that he has discussed with the Authority in the past the efforts of Lincor to secure an anchor tenant for the project, and the fact that they had been negotiating with Children's Palace for several months be- fore this particular business committed to the Trammell Crow site. Lincor has contacted numerous retailers in an attempt to secure an anchor tenant. Mr. Hinson stated that Lincor is requesting that the .Schedule of Performance be amended by delaying the Date of Deed from November 13, 1987 to January 22, 1988; the anchor tenant and financing contingency would be delayed from Oc - tober 13 1987 to January 15, 1988; the compression of review periods for the preliminary ·and final plans, and the delay of the project completion date by two months to March, 1989 . Ms. Shube addressed the Authority, and noted that they are negotiating with a general retailer from the Mid-west, who has indicated quite a bit of interest in the site, but the president of the company has not been able to get to Den- ver to personally view it. Ms. Shube gave a thumbnail sketch of the profile of the retailer for the benefit of the Authority. Ms. Shube stated that she feels confident this prospective tenant will make a decision within six weeks to two months, and asked the Authority to approve the change in the Perfor- mance Schedule to grant th i s time change. Keena moved: Minnick seconded: The Urban Renewal Authority approve the amendment to the Agreement for Disposition and Redevelopment with Linear Properties of Colorado, Inc. by the changes in the Perfor - mance Schedule as cited on Exhibit C, dated October 7, 1987. AYES: NAYS: ABSENT: ABSTAIN: Minnick, Tatton, VanDyke, Cole, Keena None Mcintyre , Voth None The motion carried. VI. LAND ACQUISITION First National Bank of Englewood Mr. Hinson stated that a negotiated settlement on the purchase price of land owned by the First National Bank and condemned by the Authority has been reached. Mr . Hinson s tated that he had talked to members of the Authority on the telephone to determine whether they approved the proposed settlement fig- ure , and has prepared a resolution to ratify the verbal approval given by the members of the Authority. Mr. Hinson stated that Mr. Opperman, legal counsel for the Authority in matters of eminent domain, has recommended that the Au- thority settle for the negotiated amount . - 5 - Minnick moved: Keena seconded: The Urban Renewal Authority approve and adopt Resolution #17, Series of 1987, A RESOLUTION OF THE ENGLEWOOD URBAN RENEWAL AUTHORITY RATIFYING A SETTLEMENT PRICE FOR THE AC- QUISITION OF A PARCEL OF PROPERTY OWNED BY THE FIRST NA- TIONAL BANK OF ENGLEWOOD. AYES: NAYS: Minnick, Totton, Cole, Keena Van Dyke ABSENT: ABSTAIN: Voth, Mcintyre None The motion carried. VII. BRADY/JWM PROPERTIES, INC. Assignment of Agreement Mr. Hinson stated that this matter cannot be considered by the Authority at this meeting, inasmuch as approval of the proposed Agreement wording has not been received from JWM Properties, Inc., which is a subsidiary of McCullough Associates. Mr. Hinson stated that he would hope to have something ready for the Authority to consider within the next couple of weeks, and that the City Council could also take action on the transference of the ground lease from Brady to McCullough. VIII. LITTLE DRY CREEK EMINENT DOMAIN CASE Graham Respondents Mr. Hinson discussed the eminent domain case which was instituted by the Au- thority to gain clear title to the portion of Little Dry Creek within the Phase III development area. Descendants of Messrs. Graham and Nielsen have stated they have an interest in the Little Dry Creek flood plain. Mr. Richard Graham has indicated to Mr. Opperman's Office that he and his siblings will be willing to settle on this issue for the sum of $1,500 total, or $500 each . Mr. Schell, an associate of Mr. Opperman's, has recommended that the Authority accept this offer to settle. Brief discussion ensued. Totton moved: Minnick seconded: The Urban Renewal Authority accept the offer of Richard N. Graham to settle the claim for the total sum of $1,500. AYES: NAYS : ABSENT: ABSTAIN: Totton, VanDyke, None Voth, Mcintyre None The motion carried. IX. FINANCIAL REPORTS Cole, Keena, Minnick Mr. Hi nson reviewed the Expenditure Report with the Authority, and noted that the figures cited for RBI reflect the reduction in amenities along Little Dry Creek at Logan Street. - 6 - • • • • • • Mr. Hinson stated that the Investment Report reflec ts l .5 million dollars in a liquid account; this is being held in the liquid account for a short time un- til the financial needs are determined before it is invested. The Investment Report was further considered. Mrs. Cole and Ms. VanDyke asked that the interest rate of 4.750% paid by Central Bank be investigated. Mr. Hinson stated that the staff will bring a proposed 1988 administrative budget to the Authority at the next meeting. X. CONSTRUCTION REPORT. Mr. Hinson reviewed the construction report prepared by Mr. Smith of the En- gineering Services Department. Mr. Hinson stated that he would like to schedule a tour of the Little Dry Creek area within the near future. He stated that he had toured the Creek recently, and was impressed with the improvements that have been completed. Mr. Minnick asked who was responsible for repair on South Clarkson Street at the Little Dry Creek crossing. Ms. Ragland stated that South Clarkson was disturbed because of water line replacement, and that she is under the impres- sion that the City would be making those repairs. XI. ENGLEWOOD MARKETPLACE Mr. Hinson stated that the groundbreaking for the Englewood Marketplace has been scheduled for October 22 at 8:00 A.M. Invitations are being sent to all Authority members and others who have worked on the proj ect . XII. SOUTH ACOMA STREET 3400 Block Mr. Hinson stated that the Engineering Services Department has done some studies on what can be done on the east side of the 3400 block of South Acoma Street. Ms. Keena stated that something must be done to establish the fact that that vacant property is owned by the Authority, and to break up the "sense of ownership" that appears to be developing on the part of some of the adjoining Broadway businessmen. Mr. Tatton asked if the Broadway businessmen were going to make any effort to improve the rear of their stores. If they expect the City and/or Urban Renew- al Authority to do something for them, they should do something in return. Ms. Daugherty pointed out that one of the problems is that none of the Broad- way businessmen know how long they will be there. Mr. Hinson stated that the Facade Improvement program has approximately $25,000 available for use on facade improvement and interior improvements. Mr. Hinson further pointed out that part of the 3400 block of South Acoma Street will be used for con s truction staging . XIII. LAND ACQUISITION Mr. Hinson asked that the Authority go into Executive Session . Minnick moved: Tatton seconded : The Urban Renewal Authority go into Executive Session. - 7 - AYES: NAYS: ABSENT: ABSTAIN: VanDyke, Cole, Keena, Minnick, Tatton None Voth, Mcintyre None The motion carried. * * * * * * * * * * VanDyke moved: Minnick seconded: The Urban Renewal Authority come out of Executive Session. AYES: NAYS: ABSENT: ABSTAIN: Cole, Keena, Minnick, Tatton, VanDyke None Voth, Mcintyre None The motion carried. XIV. PUBLIC FORUM. Ms. Penny Dietrich, Executive Director of the Englewood Downtown Development Authority, presented members of the Authority with copies of newspaper adver- tisements which will appear weekly in the Englewood Sentinel and may be placed in other papers of general circulation, also. Ms. Dietrich stated that the camera ready art will be made available to individual merchants for use with their individual advertisements. xv. COMMISSIONER'S CHOICE. Ms. Keena asked who maintains the public improvements that are being made by the Authority. Mr. Hinson stated that the City will assume the maintenance responsibilities for the public improvements. Ms. Hanson expressed her concern that it appeared Children's Palace will not install display windows on the rear of the building. She stated that she did not recall that this was an "option" but was a requirement of the Authority. Discussion ensued. Ms. Keena explained that the display window issue could not be forced on Children's Palace, and that the Authority had merely request- ed the company to consider the proposal. Mr. Hinson circulated a get-well card for Mr. Voth, and stated that Mr. Voth has been having back problems recently and is confined to bed on Dr.'s orders. Minnick moved: VanDyke seconded: The Urban Renewal Authority go into Executive Session. AYES: NAYS: ABSENT: ABSTAIN: Cole, Keena, Minnick, Tatton, VanDyke None Mcintyre, Voth None The motion carried. * * * * * * * * * * - 8 - • • • • • • Mr. Hinson was asked to leave the meeting . * * * * * * * * * * VanDyke moved: Keena seconded: The Urban Renewal Authority come out of Executive Session. AYES: NAYS: Keena, Minnick, Totton, VanDyke, Cole None ABSENT: ABSTAIN: Mcintyre, Voth None The motion carried. Mr. Hinson was called back into the meeting. Ms. Keena explained to Mr. Hin- son the discussion which had ensued among the members of the Authority and their decision to offer to him the position of Executive Director with a one year contract retroactive to September 29, 1987. Mr. Hinson stated that the proposal, as outlined by Ms. Keena, was satisfactory to him, and he would ac- cept the position of Executive Director of the Englewood Urban Renewal Authority. Keena moved: Totton moved: The Englewood Urban Renewal Authority approve, by Resolution #18, Series of 1987, a one year employment contract for Wm. Richard Hinson retroactive to September 29, 1987 as Executive Director of the Englewood Urban Renewal Authority. The salary for Mr. Hinson is hereby established at $48,200 per year, and Mr. Hinson shall receive the standard fringe benefits of City Employees, with a maximum on vacation accrual of 30 days. Mr. Hinson shall be eligible for mileage reimbursement at $.21 per mile. AYES: NAYS: ABSENT: ABSTAIN: Minnick, Totton, None Mcintyre, Voth None The motion carried. VanDyke, Cole, Keena Ms. VanDyke was given the appraisals on the First National Bank property for her review. Ms . VanDyke stated that she has heard that Ross Investment Group wants to help the Authority and the downtown project by doing some advertising. She stated that she understood Mr. Hackstaff of RIG would be in touch with the staff to discuss his proposal. The meeting adjourned at 8:35 P.M . Recording Secretary - 9 -