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HomeMy WebLinkAbout1987-11-04 EURA MINUTES• • • I. CITY OF ENGLEWOOD URBAN RENEWAL AUTHORITY NOVEMBER 4, 1987 CALL TO ORDER. The regular meeting of the Englewood Urban Renewal Authority was called to order by Chairman Robert Voth at 5:35 p.m. Members present: Cole, Mcintyre, Totton, VanDyke, Voth Hanson, Nonvoting Alternate Member Hinson, Executive Director Members absent: Keena, Minnick Daugherty, Nonvoting Alternate Member Also present: City Manager Mccown Director of Engineering Services Ragland Harold Stitt, Assistant to EURA Director Penny Dietrich, Executive Director of EDDA II. APPROVAL OF MINUTES October 7, 1987 October 22, 1987 Chairman Voth stated that the Minutes of the meetings of October 7, 1987 and October 22, 1987 were to be considered for approval . VanDyke moved: Cole seconded: The Minutes of October 7, 1987 and October 22, 1987 be ap- proved as written. AYES: NAYS: ABSENT: ABSTAIN: Mcintyre, Totton, VanDyke, Voth, Cole None Keena, Minnick None The motion carried. III. 1988 BUDGET Mr. Hinson stated that a proposed 1988 Budget for the Authority has been pre- pared for consideration. Mr. Hinson discussed the sources of funds for the budget, and the application of those funds . Mr. Hinson discussed the ad- ministration budget for 1987. Ms. Keena entered the meeting and took her chair with members of the Authority. Mr. Hinson further discussed the proposed 1988 budget, and pointed out that the budget must be adopted by the Authority and filed with the state prior to the beginning of the next f i scal year . -1 - Cole moved: Mcintyre seconded: The Urban Renewal Authority approve and adopt Resolution #19, Series of 1987, A RESOLUTION OF THE ENGLEWOOD URBAN RENEWAL AUTHORITY ADOPTING THE 1988 BUDGET. AYES: Mcintyre, None Minnick None Totton, VanDyke, Voth, Cole, Keena NAYS: ABSENT: ABSTAIN: The motion carried. IV. FINANCIAL REPORTS Expenditure Report Investment Report Mr. Hinson reviewed the financial reports with the Authority. V. TESTING SERVICES. Ms. Ragland submitted revised budgets for the testing services for construc- tion of the final phase of the Little Dry Creek improvements. Ms. Ragland stated that through negotiations with Mclaughlin Water Engineers, their proj-· ected budget has been reduced from a proposed $210,000 to $189,900. The En- gineering Services staff will be assisting in the inspection services, and there is approximately $23,000 in other funds available which can be used for this purpose. Ms. Ragland stated that construction is scheduled to begin in November, 1987 and will extend through August, of 1988; the inspection ser- vices budget will cover that period of time. Ms. Ragland stated that the bud- get includes funds to cover the period of time between the opening of the bids, and the meeting of the Authority on October 22 when the decision was made on the improvements to be made, and the bid was awarded. There will be some redesign changes, and the budget includes funds to cover these expenses. Ms. Hanson asked if it would save money if the Authority/City hired an on-site inspector rather than paying Mclaughlin. Ms. Ragland stated that the City will provide an assistant to McLaughlin's inspector, but because of the liability costs, most consultants want to be involved in the construction and inspection process to assure that the construction occurs in accordance with their specifications. Ms. Ragland stated that she would not recommend hiring our own inspector, and the consultants would not recommend it, either. Ms. Ragland stated that her staff will also be assisting in the construction stak- ing and surveying for the project. Ms. VanDyke asked what the Authority was charged for developing the improve- ment alternatives between the time the bids were opened and the date the bid was awarded. Ms. Ragland estimated a $7,000 charge was made to cover the development of the various alternatives considered by the Authority. Mr. Totton pointed out that there will be additional inspection services re- quired on the up-stream work. Ms. Ragland stated that staff is keeping track on the inspections required on the RBI project . She estimated that the work RBI is doing will run at l east two months over the completion deadline set forth in the contrac t. - 2 - • • • • • • Discussion ensued . Mcintyre moved: Totton and Keena seconded: The Urban Renewal Authority approve the budget for inspec- tion services for the final phase of the Little Dry Creek Improvements as follows: AYES: NAYS: ABSENT: ABSTAIN: Mclaughlin Water Engineers: CTL Thompson Engineering Services Other Funds Available Funds Required from URA Totton, VanDyke, Voth, Cole, Keena, Mcintyre None Minnick None The motion carried. VI. ASSIGNMENT AND ASSUMPTION AGREEMENT Brady to JWM Properties, Inc. $189,900. $40,000. $37,000. $266,900. -$23,000. $243,900. Mr. Hinson stated that McCullough Associates has purchased Mr. Brady's loan from Silverado Bank, and that rather than going through foreclosure proceed- ings, Mr. Brady transferred his rights and responsibilities in the Trolley Square project to JWM Properties, Inc., a subsidiary of McCullough Associates. This transfer has been approved by the Court, pending two actions: 1) Ap- proval by the Urban Renewal Authority of the assignment of the redevelopment agreement from Brady to JWM Properties, Inc., and 2), The approval by the City of Englewood of the assignment from Brady to JWM Properties, Inc., of the ground lease under the Trolley Square King Sooper's building. Mr. Hinson stated that he has had several discussions with Mr. John Martin, President of Preston Financial Corporation, President of McCullough Associ- ates, Ltd., and President of JWM Properties, Inc. Mr. Martin has asked that the Authority consider removing the following condition for approval: "2b. The Assignee shall pay to the Authority $7,152.90, the amount owned by Assign- or under the Redevelopment Agreement for extra work performed by the Authority because of the actions of Assignor in the construction of Englewood Parkway.11 Mr. Hinson stated that at the time the Parkway was constructed, the survey work was done, and the grades were set; the sidewalks were constructed in ac- cordance with the survey and grades. When the Trolley Square buildings were constructed, they were not constructed at the same grade, necessitating re- placement of a portion of the sidewalk to match the grade of the buildings. This was an error on the part of the contractors working for Mr. Brady. Mr. Hinson stated that the most important points of the Assignment and Assump- tion Agreement, in terms of benefit to the Authority, are 2a, 2c, and 2d which Mr. Martin has agreed to retain in the Agreement. - 3 - Discussion ensued. Mr. Voth suggested that if 2b is removed from this Agree- ment, that the Authority try to deduct this amount from any proceeds that might be returned to JWM Properties from moneys on deposit with the courts, or • if no moneys are due back from the courts, the Authority attempt to secure the payment from Mr. Brady. Mr. Voth stated he did not feel this is something that should be written off by the Authority without an attempt to collect. Keena moved: Cole seconded: The Urban Renewal Authority approve the Assignment and As- sumption Agreement by and between the Englewood Urban Re- newal Authority, S. Bud Brady and Brady Development Cor- poration, and JWM Properties, Inc., as amended with the deletion of §2b on Page 2. However, the amount of $7,152.90 due the Authority shall be deducted from any mon- ey to be refunded which is on deposit with the Courts. AYES: NAYS: Totton, VanDyke, Voth, Cole, Keena, Mcintyre None ABSENT: Minnick ABSTAIN: None The motion carried. Mr. Mccown asked what would happen if the City Council did not approve the assignment of the Ground Lease. Mr. Hinson stated that JWM Properties will assume the responsibilities of the Redevelopment Agreement only if the ground lease assignment is approved by City Council and the Redevelopment Agreement assignment is approved by the EURA. If City Council does not approve the • ground lease assignment, and the assignment and assumption agreement does not go into effect, the Urban Renewal Authority will be subject to payment of the leasehold determination for Physical Whimsical. Discussion ensued. VII. WELLS FARGO REALTY ADVISORS Assignment of Developer's Rights under Agreement for Disposition and Redevelopment. Estoppel and Agreement. Mr. Hinson stated that these two agreements have been submitted by Wells Fargo Realty Advisors. The "Assignment" is a form of additional collateral for the loan Wells Fargo has granted Trammell Crow for construction of the Englewood Marketplace, and will assure Wells Fargo the right to step in to complete the project in the event of a default by Trammell Crow. The Estoppel Agreement is an assurance from the EURA that the redeveloper (En- glewood Marketplace Associates) is in compliance with the Redevelopment Agree- ment Schedule of Performance, and is not in default under the terms of the Agreement. This will also assure Wells Fargo the right to remedy any default under its Deed of Trust provisions, and that plan approvals required by the Authority have been given. Also, it assures that the costs to be incurred by the Englewood Marketplace Associates during construction of the project are costs acceptable under the terms of the Redevelopment Agreement. Mr. Hinson stated that these assurances are required at this time because Wells Fargo must release a substantial sum of money to facilitate the construction of the -4 - • • • • project. These forms have been reviewed with the EURA legal counsel, and found to be in order. Staff recommends approv al by the Authority . Brief discussion ensued. Totton moved: Cole seconded: The Urban Renewal Authority approve the Estoppel Agreement and the Assignment of Developer's Rights under Agreement for Disposition and Redevelopment between Englewood Market- place Associates, Ltd., and Wells Fargo Realty Advisors. Staff is hereby directed to assure that all contracts, elevations, and final plan designs as approved by the EURA, are signed off by Trammel Crow/Englewood Marketplace Associates. AYES: VanDyke, None Minnick None Voth, Cole, Keena, Mcintyre, Totton NAYS: ABSENT: ABSTAIN: The motion carried. VII. SALE OF ACCENT LIGHTS Englewood Marketplace Mr. Hinson stated that Trammell Crow representatives said they were interested in purchasing some of the accent lights that the Urban Renewal Authority has in stock. Mr. Hinson suggested that in lieu of pursuing compensation from Englewood Marketplace Associates for the utility taps on the development site, they be asked to purchase a minimum of 20 of the accent lights at the Authori- ty's cost. Discussion ensued. Mcintyre moved: Cole seconded: The Urban Renewal Authority authorize the sale of 20 accent lights at the Authority's cost to Englewood Marketplace Associates and not seek compensation from them for utility tap credits. AYES: NAYS: Voth, Cole, Keena, Mcintyre, Totton, VanDyke None ABSENT: Minnick ABSTAIN: None The motion carried. * * * * * * * * * * Mr. Hinson stated there were several matters that needed to be discussed in Executive Session. Keena moved: Cole seconded: The Urban Renewal Authority go into Executive Session. AYES: NAYS: Cole, Keena, Mcintyre, Totton, VanDyke, Voth None -5 - ABSENT: Minnick ABSTAIN: None The motion carried. Cole moved: * * * * * * * * * * VanDyke seconded: The Authority come out of Executive Session. AYES: NAYS: ABSENT: ABSTAIN: Keena, Mcintyre, None Minnick None The motion carried. IX. RANDALL & BLAKE Tatton, VanDyke, Voth, Cole Little Dry Creek Construction Tatton moved: Cole seconded: AYES: NAYS: ABSENT: ABSTAIN: Mcintyre, None Minnick None The motion carried. The Urban Renewal Authority grant 18 weather days to RBI, extending the completion date of the contract to December 2, 1987 penalty free. Tatton, VanDyke, Voth, Cole, Keena X. LITTLE DRY CREEK Quiet Title Suit Keena moved: Tatton seconded: The Urban Renewal Authority authorize staff to continue negotiations with Ms. Barbara Holthaus through legal counsel. AYES: NAYS: ABSENT: ABSTAIN: Totton, VanDyke, Voth, Cole, Keena, Mcintyre None Minnick None The motion carried. XI. BOND ISSUE REFUNDING Mr. Hinson updated the Authority on progress of the bond issue refunding, and stated that representatives of E. F. Hutton will be going to New York and Chicago this next week to contact potential purchasers for the bonds. They are working to put the bonds on the market by December 1. The tentative clos- ing date will be December 24. - 6 - • • • • • • Mr. Hinson stated that he has talked to representatives of Kutak, Rock & Camp- bell, bond counsel; representatives of E. F. Hut t on; and Mr. Ron Myles on ways to structure the refunding taking into conside r ation Mr. Totton's suggestion that the bond reissue include funds to pay off the loan on the old King Sooper's site. Mr . Hinson cited expenses that are projected for the Authori- ty, and pointed out matters for which there is no estimated financial factor. He questioned that it would be in the best interest of the Authority to pay off the loan at this point in time, if in fact, the issue can be large enough to accommodate such an undertaking. Mr. Hinson pointed out that proceeds from any properties sold would likely have to be used to retire the bonds. Au- thority advisors suggested that the loan with the Bank continue to be carried by the Authority, and if need be, restructured at a later time. Mr. Hinson stated that Mr. Myles has suggested that the property on South Acoma Street could be a viable property in two or three years, and that the possibility of a hotel in Englewood still exists. Mr. Hinson stated it seems to be the consensus of people dealing in the bond markets that the market is strengthening as a result of the problems on the stock market. Mr. Hinson stated that he had been asked if he would be available to make pre- sentations to prospective purchasers; this might entail traveling with the bond consultants. He asked the opinion of the Authority on this issue. City Manager Mccown suggested that it is normal practice for bond underwriters to pay for the expenses associated with such travel. Discussion ensued. X. LINCOR PROPERTIES OF COLORADO, INC . Mr. Totton asked if any further progress had been reported on securing an an- chor tenant for this site. Mr. Hinson stated that he understood the prospects for one possible anchor have "dimmed", but that the chances of signing Toys 'R Us have improved. Ms. VanDyke asked if Ms. Shube had contacted Bonwit Teller; she understood they were looking at sites in the metro area. XI. TROLLEY SQUARE. Mr. Hinson stated that he understood JWM Properties were to bring in plans on retrofitting the rear of the Broadway structure. XII. PENNANT PROPERTIES. Mr. Hinson stated that he has been informed that Pennant Properties has leased 10,000 square feet adjacent to Buyer's Club to Montgomery Wards for their auto store. Mrs. Cole discussed her concern with the traffic patterns into the Buyer's Club site, and asked why the Kenyon/Santa Fe Drive intersection was closed. Mr. Mccown stated that this intersection was closed by Sheridan and the PUC. Englewood entered the issue to protest the closure of this intersection. Mr. Hinson stated that Buyer's Club is undertaking an extensive public relations/marketing campaign . -7 - XIII. ENGLEWOOD MARKETPLACE. Mr. Totton stated that he had talked to the Superintendent of the Englewood Marketplace Construction crew, and they will begin laying asphalt on the site on Friday, November 6. XIV. MISCELLANEOUS. The possibility of a Christmas dinner was discussed . Mr. Mcintyre was asked to look into the possibility of having the dinner at Pinehurst Country Club, the costs, and menu selections. Discussion ensued. The meeting adjourned at 8:00 P.M. ~~~L# Gertrude G. Welty 7 Recording Secretary -8 - • • •