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HomeMy WebLinkAbout1988-09-07 EURA MINUTES• • • 9 D R A F T ENGLEWOOD URBAN RENEWAL AU THORI TY SEPTEMBER 7, 1988 I. CALL TO ORDER. The regular meeting of the Englewood Urban Renewal Authority was called to order at 5:45 P.M. by Chairman Robert Voth. ·Members present: Voth, Cole, Keena, Mcintyre, Minnick, Byrne Hanson, Alternate Member Hinson, Executive Director/Executive Secretary Members absent: Tatton Daugherty, Alternate Member Also present: Densel Ragland, Director of Engineering Services Richard Wanush, Director of Community Development II. APP ROVAL OF MINUTES. August 3, 1988 Chairman Voth stated that the Minutes of August 3, 1988 were to be considered for approval. It was moved, seconded, and carried, that the Minutes of August 3, be approved as written. III. SUBORDINATE DEBT NOTE Note R-3 Mr. Hinson stated that the Broadway merchants in the 3400 block have been ask- ing that a parking lot be constructed on the east side of the 3400 block of South Acoma Street, which property is under the ownership of the Englewood Urban Renewal Authority. Mr. Hinson stated that original development plans for this section of the redevelopment area indicated an office structure on the north end of the block, with a hotel on the southern end. Current market conditions do not support this proposed development , and the only proposal that has been received on this property recently is from Trammell Crow. This informal proposal was for the construction of an additional 50,000 to 75,000 square feet of retail. However, such a development by Trammell Crow would entail the acquisition and clearing of property fronting on Broadway in that block, and selling the land back to Trammell Crow at a subsidized rate. Esti - mated expenses for acquisition, relocation and clearance range between $3,000,000 to $4,000,000. Mr. Hinson stated that it does not seem feasible at this time to spend this amount of money to generate roughly the same amount of sales tax that is being generated now. Mr . Hinson stated that it is his opinion that the wisest course right now is to "land bank" the property for development when the market picks up. -1 - City Council has listened to the suggestions of the Broadway merchants, and will make funds available to the Authority to develop the site as an interim • parking lot. These funds would be "borrowed" by the Authority, and would be a subordinate debt to the City of Englewood to be repaid from sales tax incre- ment revenues in the future. Ms. Keena stated that as she recalled, the last time use of this site was dis- cussed, the development of a parking lot and the development of an interim park area were considered. Ms. Keena stated that the possibility of a "crowd attractor" usage was considered, and that she is surprised that a decision has now been made that the Authority land is to be used as a parking lot without discussion and determination from the Authority. Ms. Keena stated that she would want to know the cost of constructing the parking lot, maintaining the parking lot, and the eventual demolition costs of the parking lot as compared to a landscaped open area which could be used for "crowd attractor" events. Ms. Keena stated that she felt there are other options that must be considered before she would be ready to borrow more money to develop an interim parking area. Mr. Hinson and Ms. Ragland pointed out that approximately $12,000 has been expended on the site to replace the curb and gutter, which had been badly damaged and could result in a possible lawsuit against the Authority if some- one had been injured. This improvement was also needed for stormwater drainage. Discussion ensued. Ms. Ragland suggested that the maintenance costs for an open, landscaped area would exceed maintenance costs for a parking lot. Ms. Byrne stated that City Council supported the proposal of an interim park- ing lot to give a feeling of permanence and stability to the Broadway businesses. Ms. Keena suggested that objections to the eventual removal of the interim parking lot will be "fierce". Mr. Minnick suggested that if the Broadway merchants want to have an interim parking area on this block, they should be charged for usage of the lot.· Ms. Keena stated that she felt it would be difficult to police on the proportion- ate usage of the lot by the paying merchants vs . non-paying merchants . Ms . Keena reiterated that the Urban Renewal Authority has not agreed that the site should be developed as an interim parking lot. Ms. Keena suggested that it might be better to pay to have the weeds on the lot cut , and to leave the land vacant. Mr. Hinson stated that he had been contacted by a Broadway merchant north of En~lewood Parkway about the possibility of his improving the lot and renting a portion of the lot for parking for his customers and employees. This proposal was discussed with Legal Counsel Benedetti, who cautioned that improvement of the lot by the businessman could give him a vested interest in the lot. Mrs. Cole suggested that if merchants are charged a fee for usage of the lot, this might create problems in the future when the "interim" use is terminated. Ms. Keena suggested that if the interim parking area is improved by the Au- • thority, and the .merchants are charged a monthly fee, she did not think this • would give a vested interest. She would not suggest a long-term lease, which could be interpreted as a vested interest. - 2 - • • Mrs. Hanson stated that she was also concerned about Broadway businesses having a vested interest in the site. Mrs. Hanson questioned that it should be a "paid" parking lot. She stated that she was not sure she wanted to see an interim parking lot on the site at all, but would rather have the land be left vacant. Mr. Voth suggested that the improvement of the block as an interim parking lot and the expenditure of the estimated $53,000 to make this improvement, might be of help to the Broadway merchants, and improve the business sufficiently that the increase in sales tax revenues would pay the development costs in five years time. He stated that he is hesitant to approve the interim use of the block for parking, because the Broadway merchants and their customers would think the parking lot is "forever". He suggested that if this site is developed for parking usage, there should be sufficient signage giving notice of the temporary nature of the parking, and that the lot is for sale for development. Mr. Voth suggested that something will have to be done with the site. It should not be left vacant and weedy . Ms. Ragland pointed out that people are parking on the site at the present time. Mrs. Cole suggested that if the site is left vacant, and nothing done, it will be a real eyesore in the downtown area. She cited all the efforts and money that have gone into making the downtown area more attractive to businessmen and customers. She stated that she did not envision development in this block for another five years, and possibly 10 years. Ms. Keena asked why the Authority should approve spending $53,000 for a proj- ect that will create problems for the Authority when it is eliminated. Ms . Keena suggested that attempts should be made to get the businessmen to share in the cost of the interim parking lot, if that is what is determined should be developed on the site. Mrs. Hanson suggested asking the Broadway businessmen to meet with the Au- thority to discuss proposals for the development of the site on an interim basis . Mr . Mcintyre stated that if the City feels it is important that this site be used for an interim park i ng area, let the City pay for the improvements , and not ask the Authority to bo r row money t o make improvements that the Authority has not determined should be made on this site. He asked for further informa- tion on the proposal from the businessman north of Englewood Parkway regarding use of the site . Mr . Hinson stated that this businessman had offered to pay for paving of part of the lot if he could be guaranteed use of a specific num - ber of spaces . Mr . Hinson felt that it would be impossible to provide this guarantee without hir i ng someone to police the lot . The possibility of metering the parking area was discussed . Mr. Hinson asked if the Autho r ity wanted to table this matter for further con - sideration. Mrs. Hanson suggested that she would be interested in considering any other proposed uses for the site. Mr . Voth suggested that information on maintenance costs of the park i ng lot vs . landscaped open area be submitted. • Ms . Daugherty entered the meeting at 6 :15 P.M. -3 - Mrs . Cole inquired about the possibility of cutting down on the cost of developing the interim parking lot, such as cutting down on landscaping of the lot. Mrs. Cole stated that she agreed it should be made clear to all businessmen and customers that this would be a temporary parking lot. Brief discussion ensued. Mcintyre moved: Keena seconded: The Urban Renewal Authority table the issue of Subordinate Debt Note R3 for further discussion. Ms. Ragland discussed the appearance of the corner of Englewood Parkway and South Broadway. A narrow strip of land immediately adjacent to the Parkway is owned by the Authority, and Mr. Friedman owns a larger parcel of vacant land, which is not well maintained. Mr. Wanush suggested that if weeds are on the site, that the property owner be ticketed and told to remove the weeds. If he does not do so, the City can have it done, and the property owner will be charged. Ms. Daugherty asked if there was anyway specific buildings could be painted, such as having a mural painted on the side to improve the appearance. Ms. Byrne suggested that she could discuss this at the School/City committee meet- ing. Mr. Voth pointed out that this is private property, and permission from the property owner would have to be obtained. The vote was called on the motion to table. AYES: NAYS: ABSENT: ABSTAIN: Cole, Keena, None Tot ton None The motion carried. Mcintyre, Minnick, Voth, Byrne Mrs. Cole again requested that staff look into the possibility of reducing the costs of the interim parking lot. Ms. Ragland pointed out that the costs the Authority would be charged would be for materials only. The City would pro- vide the labor and personnel. Mr. Voth asked whether this block is part of the EDDA District, and whether there is a possibility of assessment for improvements such as was done on the parking lot in the 3400 block of South Lincoln Street. Discussion ensued. Mrs. Cole pointed out that if this site were developed as a temporary, land- scaped parking lot, it would still be available for other uses. She stated that if the site were to be fenced off and left vacant, she is concerned that "people would be up in arms". Ms. Daugherty stated that the "rumor mill is that it will be paved", and that the customers and merchants were happy about this. Ms. Byrne stated that she had gotten the same impression, and that City Coun- • • cil felt it would be nice to do this to give a sense of stability for the • businesses on Broadway. Ms. Keena suggested that "a lot of things are nice, but is it appropriate for a governmental agency to borrow money to do it." -4 - • • • The Authority finances were discussed. Mr. Hinson stated that tax increment revenues are used to pay the bonds off first. When the revenues reach the point where the funds are sufficient to make the bond payments, and the reserve fund is back to the required level, then funds received over and above that amount may be used to retire bonds, or to pay subordinate debt notes. Mr. Hinson cited issues before the Authority that still have to be resolved, such as right-of-way for Englewood Parkway from First National Bank of Engle- wood and the completion of other court ca se s . Mr. Hinson pointed out that the only source of new moneys for the Author ity at this time is the City of Engle- wood. Unless the City makes the money available, the Authority cannot proceed with resolution of any of the outstanding issues. Mrs. Cole stated that she, like Ms. Keena, does not like the idea of accruing additional indebtedness, but neither does she like the idea of an eyesore in the downtown area that we have tried so hard to improve. Mr. Hinson stated that he does not think that Ms. Keena is saying that the land should never be used for a parking lot, but that more people should participate in the funding if this is, indeed, the interim use of choice. V. ENGLEWOOD MARKETPLACE Certificate of Partial Completion Mr. Hinson discussed a request from Trammell Crow Company that their Letter of Credit be reduced as per the Agreement for Disposition and Redevelopment. They are also requesting a Certificate of Partial Completion for the project. Based on the construction that has been completed to date, and after consulta- tion with Legal Counsel Benedetti, staff recommends that the Authority approve the Certificate of Partial Completion, and the reduction in the amount of the Letter of Credit as requested . Keena moved: Mcintyre seconded: The Englewood Urban Renewal Authority approve the issuance of a Certificate of Partial Completion for the Englewood Marketplace, and reduction in the amount of the Letter of Credit. AYES: NAYS: ABSENT: ABSTAIN: Keena, Mcintyre, Minnick, Voth, Byrne, Cole None Tot ton None The motion carried. VI. FINANCIAL REPORTS. Reserve Fund -Debt Service Payment Expenditure Report Investment Report Mr. Hinson presented an analysis of cash flow for the Authority, which indi- cates the drawdowns on the Reserve Fund to make the Debt Service Payments for 1988. Mr. Hinson stated that Hanifen-Imhoff had done some projections which indicated an anticipated drawdown of $1,009,000. The staff projections indi- cate a drawdown of $1 ,183,000. Mr. Hinson suggested that an explanation of the difference in these figures is that the sales tax revenues for the month of December would not be available to make the payment on the December 1st debt service date . Additionally, property taxes are not only substantially -5 - below projections but also substantially {approximately 20%) below last year's collections. Mr. Hinson discussed the property tax reassessment and the effect the reas- sessment and appeal procedures have had on the revenues coming in for the Au- thority. Mr. Hinson stated that the property tax revenues are approximately $100,000 below last year's collections to date, and approximately $300,000 below our projections for this year. On the other hand, sales tax revenues appear to be approximately $200,000 greater than projected. Discussion ensued. The appeals to reassessment were discussed further. Ms. Keena stated that the reductions are being applied only to the tax increment revenues, and not to the base amounts in the tax increment districts. She stated that when the bond holders realize this fact, she anticipated some lawsuits filed against the State of Colorado. Mrs. Hanson asked if there was anyway the Authority could lobby for a change in the way the reductions are applied. Discussion followed. The Expenditure Report was considered. Mr. Hinson stated that there have not been many legal expenses in the past month or two, and the administrative bud- get appears to be in pretty good shape. The Investment Report was submitted to the members of the Authority. VII. CONSTRUCTION REPORT. Mr. Hinson stated that it appears the final phase of the Little Dry Creek im- provements will be completed on schedule. Ms. Ragland stated that the contractors are experiencing difficulties in get- ting capstone of the proper thickness from the mountains. This might result in a completion delay of a few days. However, there have been extra facets of the project that have been done which were not included in the original con- tract, such as the fountain at Broadway, and time should be added in for that. Mr. Hinson stated that it appears, following completion of the Lillard & Clark portion of the Little Dry Creek improvements, that the Authority will be in a relatively "dormant" stage . There are currently no plans for additional public projects that the Authority will be involved in. He stated that the Urban Renewal Authority has served as the financing tool for the public im- provements along Little Dry Creek and the Englewood Parkway, and should not be eliminated as a future resource for the City. However, since there are a limited number of items pending which would require Authority action, meetings could be scheduled for every other month, or on an "as needed" basis. VIII. MISCELLANEOUS Mr. Hinson announced the resignation of Mrs . Penny Dietrich as Executive Di- rector of the Englewood Downtown Development Authority. Mrs. Dietrich has accepted a position as Director of Marketing for Nova Net Communications in Inverness Park. Ms. Keena asked that Mr. Hinson write a letter of apprecia- tion to Mrs. Dietrich for her help and support on the downtown improvement project. -6 - • • • • • • Ms. Daugherty asked if there was going to be anything else included on the statue of the Indian dedicated to the City by Mr. Scott. Mr. Hinson suggested that Ms. Daugherty might want to discuss this with Ms. Rosemary LaPorta and Mrs. Hathaway, inasmuch as both ladies have been very active in the placement of the statue and the Englewood Rendezvous. There being nothing further to come before the Authority, the meeting was de- clared adjourned at 7:00 P.M . - 7 -