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HomeMy WebLinkAbout1987-01-07 EURA MINUTES• • • ENGLEWOOD URBAN RENEWAL AUTHORITY JANUARY 7, 1987 I. CALL TO ORDER. ~;~ q B The regular meeting of the Englewood Urban Renewal Authority was called to order by Chairman Robert Voth at 5:45 P. M. Members present: Mcintyre, Minnick, Totton, VanDyke, Voth, Cole, Keena Susan Powers, Executive Director/Executive Secretary Members absent: Alternate Member Daugherty Also present: Assistant Director Wm. R. Hinson Legal Counsel Paul C. Benedetti Director of Engineering Services D. A. Ragland EDDA Executive Director Dietrich Rick Dunn, JBC Investment II. APPROVAL OF MINUTES. December 3, 1986 Chairman Voth stated that the Minutes of December 3, 1986 were to be con- sidered for approval . Totton moved: Minnick seconded: The Minutes of December 3, 1986 be approved as written. AYES: NAYS: Minnick, Totton, VanDyke, Voth, Cole, Keena, Mcintyre None ABSENT: None ABSTAIN: None The motion carried. Ms. Powers stated that the City Council would be joining the meeting at 7:00 P. M. for the discussion with Mclaughlin Water Engineers and EDAW on Little Dry Creek. III. JBC INVESTMENT CORPORATION Old King Sooper's Block Ms. Powers introduced Mr. Rick Dunn of JBC Investment Corporation, and asked that Mr. Dunn bring the Authority up-to-date on the proposed development. Ms. Powers stated that following the meeting of the Authority in December of 1986, a letter was sent to JBC expressing the concern of the Authority on the prog- ress of negotiations, and the possible placement of JBC in default of the Agreement. Ms. Powers also handed members of the Authority copies of a report from Laventhol & Horwath on the proposed development of a port~on of the site by Movies One . City Manager Mccown entered the meeting. -1 - Mr. Dunn stated that the merger of Movies One with National Amusements Inc. has been delayed but should be completed within the next week or two. This • merger has been delayed because of another merger involving National Amuse- ments, Inc., which company was acquiring a large communications company and that closing had to occur prior to the end of the year. Mr. Tom Fitzpatrick, representing the Englewood Chamber of Commerce, entered the meeting. Mr. Dunn stated that the merger between Movies One and National Amusements, Inc. will result in a very good financial statement for this particular enti- ty. Mr. Dunn emphasized that the delay in the merger has not been a matter of price, but only the need to complete other mergers prior to the completion of this particular transaction. The lease terms quoted to National Amusements, Inc. and Movies One have been acceptable, and Mr. Dunn stated that within 30 to 45 days following the completion of the merger between these two companies, he anticipates that there will be a signed lease which will facilitate obtain- ing financing by JBC Investment Corporation for the total project. Mr. Dunn stated that JBC will very shortly be required to post a second $50,000 letter of credit in favor of the Authority. Mr. Dunn discussed the financial posi- tion of the JBC Investment Corporation, and noted that they are working on a proposal to purchase another company which will increase their financial capabilities to post the second Letter of Credit and pay for the design work for the congregate care portion of the proposed development. Mr. Dunn apolo- gized for the delays and stated that it has not been the intent of JBC to "string the Authority along", but it has been more difficult to obtain the financing for their proposal than was anticipated. Mr. Totton noted that he recalled mention that the Theatre company has review- ing three possible locations in this area; have they definitely committed to this site on the old King Sooper's block. Mr. Dunn stated that he does not have anything in writing. He recalled that the Theatre company was looking at this site and a site in Bear Valley which has been determined to be completely unacceptable. There is one other site in the Denver metro area that they have committed to and/or developed, but he is not sure of the location. Mr. Totton asked Mr. Dunn if he could obtain a letter of intent from the The- atre company. Mr. Dunn cautioned that until the merger between Movies One and the National Amusements, Inc. is completed it would probably be difficult to get such a letter, but he will request one. Ms. VanDyke asked if JBC is asking for a time extension on the Agreement. Mr. Dunn stated that in Ms. Powers's letter following the last Authority meeting, a date of January 7 was given to post the second Letter of Credit and show firm progress in the negotiations. He stated that the merger has been delayed between the two major companies, and JBC cannot meet this deadline; therefore, they do ask for a 30 day deadline to allow the merger to be completed and the financing obtained by JBC. Ms. Keena asked what a 30 day deadline would do to the remainder of the proj- ect. Ms. Powers stated that the demolition of the old King Sooper's structure would be delayed. The second letter of credit would be used to make the interest payments on the loan the Authority has on the property; if the merger does not go through, or if the financing cannot be obtained and JBC defaults on the Agreement, the Authority would have to make the interest payment, and -2 - • • • • • would have to go through the process of asking for proposals for development again . Ms. Powers asked if JBC closes the deal for the theatres, would this mean they would be able to purchase the total parcel of land at one time. Mr. Dunn an- swered in the affirmative. He stated that one of the big stumbling blocks to obtaining financing has been an uncommitted development for one half of the site; no lender would finance the purchase of the entire site without knowing the development proposal for the total site, and that there is something com- mitted for that development. Members of the Authority thanked Mr. Dunn for his attendance. Mr. Dunn ex- cused himself from the meeting. Discussion followed. Ms . VanDyke stated that if the extension is granted, JBC should be requested to waive the 30 day grace period if they are placed in default at the end of the time extension. Ms. Powers pointed out that JBC has posted one letter of credit, which was used to make an interest payment on the loan for the Authority; they have also expended funds for design fees, and have a considerable investment in the property. She stated that she feels they are motivated to try to make the proposal work, and that they are at risk if the Authority chooses to place them in default. Further discussion ensued. Mr. Totton stated that the Authority has had sufficient experience now to realize that the proposals for redevelopment and financing take longer than initially anticipated. Ms. Powers pointed out that trying to get something accomplished during the holiday season is extremely difficult. Ms. Keena stated that the fact they have expended $50,000, which the Authority has used, is a commitment . She suggested granting the 30 day extension. Ms. Daugherty entered the meeting at 6:15 P.M. Ms. Cole stated that she would agree with Ms. Keena. Mr. Benedetti suggested that the Authority also ask that JBC waive any claim to force majeur in addition to waiving the 30 day cure period after being placed in default. Cole moved: Keena seconded: The Urban Renewal Authority grant to JBC Investment Cor- poration a 30 day extension on the Agreement for Redevelop- ment; in return, JBC is hereby required to waive all claims to force majeur and to waive the 30 day cure period if the Authority finds it necessary to place them in default at the end of the 30 day extension. AYES: NAYS: ABSENT: ABSTAIN: Totton, VanDyke, Voth, Cole, Keena, Mcintyre, Minnick None None None The motion carried. -3 - IV. ROSS INVESTMENT GROUP, INC. Schedule of Performance Ms. Powers stated that Ross Investment Group, Inc. is requesting and amendment of the Agreement for Disposition and Redevelopment on the matter pertaining to Soils Testing, which was to have been completed by December 31, 1986. Ross Investment Group is requesting that an extension be granted for completion of the soils testing until April 15, 1987, or 10 days after all necessary soils reports are received by the Authority and the Redeveloper following agreement with the anchor tenant for a specific building location, whichever occurs first. Mr. Tatton asked if the EURA is responsible to cure any problems found in soils testing. Ms. Powers stated that the Authority is not required to cure any problems, but any such problems would provide Ross a reason to walk away from the project. Mr. Benedetti stated that the amendments to the Agreement be made at one time. Tatton moved: Keena seconded: The Urban Renewal Authority approve the request of Ross Investment Group, Inc. to extend the completion date for soils testing to April 15, 1987, or 10 days after all necessary soils reports are received by the Authority and the Redeveloper following agreement with an anchor tenant, whichever occurs first. AYES: NAYS: VanDyke, Voth, Cole, Keena, Mcintyre, Minnick, Tatton None ABSENT: None ABSTAIN: None The motion carried. V. RELOCATION PAYMENT Ivan's Tonsorium Mr. Hinson stated that he had miscalculated the time in which Mr. Yost had to file his request for relocation benefits, and that Mr. Yost's last claim was filed within the six month period. Therefore, he is bringing the request back to the Authority for their consideration. The request encompasses obsolete stationery, obsolete matches with advertising printed on them, and obsolete draperies, which were custom made for the former location and are not usable at the new site. Mr. Yost's request, which will be the final relocation request on this case, is for reimbursement of $817.94; this will bring the total reimbursement to Mr. Yost to $9,584.55. Mcintyre moved: Minnick seconded: The Urban Renewal Authority approve payment of $817.94 to Mr. John Yost, d/b/a Ivan's Tonsorium. This will be Mr. Yost's final relocation payment. - 4 - • • • • • • AYES: NAYS: Voth, Cole, Keena, Mcintyre, Minnick, Totton, VanDyke None ABSENT: None ABSTAIN: None The motion carried. VI. FINANCIAL REPORTS. Investment Report Expenditure Report Ms. Powers reviewed the financial reports for Investments and Expenditures. Mr. Tatton asked that the next Expenditure Report show a consolidation of all project costs. VII. CONSTRUCTION REPORTS. The construction reports on Little Dry Creek and for Floyd Avenue realignment were reviewed. It was suggested that the Authority might consider scheduling a bus tour to view the work that is being done along Little Dry Creek. VIII. 101 WEST FLOYD AVENUE Proposed Bingo Parlor Ms. Powers stated that there is a possibility that a Bingo Parlor will be pro- posed for 101 West Floyd Avenue. This would be a Conditional Use in the B-1 Zone District, and would have to go through a Public Hearing before the City Planning and Zoning Commission. Ms. Powers stated that she has reviewed the Comprehensive Plan and the Urban Renewal Plan, and it is her opinion that this is not the type of business that should be encouraged in the downtown redevelopment area. Ms. Powers suggested that if this proposal is actually filed, that perhaps the Authority should be prepared to oppose this use in this location. Ms. VanDyke asked if the City would gain anything from this sort of business. Would there be any value to suggesting a different location in the City. Ms. Keena stated that St. Louis Church on South Sherman has bingo games, and that anyone wishing to play bingo can go there. Discussion ensued. Ms. Keena stated that she felt any action the Authority takes should be "application specific", and it appears that an application or partial application has been filed for this specific location for a bingo parlor. Keena moved: Totton seconded: The Urban Renewal Authority adopt Resolution #1, Series of 1987, A RESOLUTION OF THE ENGLEWOOD URBAN RENEWAL AUTHORITY REGARDING A PROPOSED BINGO PARLOR AT 101 WEST FLOYD AVENUE, ENGLEWOOD, COLORADO. AYES: Cole, Keena, Mcintyre, Minnick, Tatton, VanDyke, Voth NAYS: None ABSENT: None ABSTAIN: None The motion carried. -5 - IX. ENGLEWOOD EXCHANGE UPDATE. Ms. Powers stated that the wall and welcome to Englewood sign along the south side of U.S. 285 has been completed. Ms. Ragland discussed the problems incurred on West Kenyon Avenue when Public Service Company bored into a water line under the street and caused partial collapse of portions of the street. This repair will have to be financed by PSC. X. KEY SAVINGS AND LOAN. Ms. Powers stated that the offer of the Urban Renewal Authority to purchase the fire damaged warehouse on the Key Savings Property has been accepted. Ms. Powers stated that the Key Savings building has been repainted. XI. TROLLEY SQUARE UPDATE. Ms. Powers stated there was nothing new to report on Trolley Square. XII. PROPERTY ACQUISITION. Ms. Powers stated that the Authority has closed on the acquisition of property on South Bannock Street owned by Mr. and Mrs. Robert Vance, and by Mr. and Mrs. Charles Bell. This is a contract purchase agreement with both parties, and the balance of the purchase price is due to be paid them in July, 1987. The Authority was not able to reach a purchase agreement with Ms. Joyce Hirsche, the remaining property owner on South Bannock Street. * * * * * * * * * * Mr. Voth declared a recess of the Authority until the members of City Council join the meeting. * * * * * * * * * * The meeting was reconvened with the following members present: Mcintyre, Minnick, Totton, VanDyke, Voth, Cole Alternate Member Daugherty Absent: Ms. Keena Also present: Mayor Otis, Councilmembers Vobejda, Bilo, and Higday. John Pflaum, Mclaughlin Water Engineers Phil Hendricks, EDAW XIII. LITTLE DRY CREEK Preliminary Design of Public Improvements Agreement for Final Design and Preparation of Construction Documents Mr. John Pflaum displayed depictions of the improvements proposed along Little Dry Creek from Broadway west to the existing bo x culvert . - 6 - • • • • • • Public Relations Specialist Dalquist entered the meeting . Ms. Powers discussed the cost estimates for the proposal, and funds available, plus possible sources of additional funding. Some contingencies or additive features which are not part of the base bid were identified and considered for possible delay. Ms. Powers also discussed the time factor in the award of the bid and the fact that Ross Investment Group has until July 15 to "walk" on the project. Discussion ensued. The possibility of phasing the development was discussed. Ms. Ragland empha- sized the need to have all the design work done up front. VanDyke moved: Minnick seconded: The Urban Renewal Authority approve the PRELIMINARY DESIGN, PUBLIC IMPROVEMENTS FOR DOWNTOWN ENGLEWOOD proposed by Mclaughlin Water Engineers, dated December 31, 1986. AYES: NAYS: ABSENT: ABSTAIN: Mcintyre, Minnick, Tatton, VanDyke, Voth, Cole None Keena None The motion carried. Tatton moved: VanDyke seconded: The Urban Renewal Authority approve the AGREEMENT FOR FI NAL DESIGN AND PREPARATION OF CONSTRUCTION DOCUMENTS LITTLE DRY CREEK IMPROVEMENTS, DOWNTOWN ENGLEWOOD, MWE JOB NO. 79- 058.10 in the amount of $221,500.00. AYES: NAYS: Mcintyre, Minnick, Tatton, VanDyke, Voth, Cole None ABSENT: Keena ABSTAIN: None The motion carried. There being no further business to come before the Authority, the meeting ad- journed at 8:55 P. M. ~£yk~ Gertrude G. Welty ' Recording Secretary - 7 -