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HomeMy WebLinkAbout1988-10-12 EURA MINUTES,. • •• • CITY OF ENGLEWOOD URBAN RENEWAL AUTHORITY OCTOBER 12, 1988 I. CALL TO ORDER. D R A F T The meeting of the Englewood Urban Renewal Authority was called to order at 5:30 P.M. by Chairman Robert Voth. Members present: Mcintyre, Minnick, Totton, Voth, Byrne Hinson, Executive Director Members absent: Cole, Keena Daugherty, Alternate Member Hanson, Alternate Member Also present: Densel Ragland, Director of Engineering Services Richard Wanush, Director of Community Development Harold Stitt, Assistant to EURA Director II. APPROVAL OF MINUTES. September 7, 1988 Chairman Voth stated that the Minutes of September 7, 1988 were to be con- sidered for approval . Minnick moved: Totton seconded: The Minutes of September 7, 1988 be approved as written. The motion carried, and the Minutes were declared approved. Ms. Hanson entered the meeting and took her chair with members of the Authority. III. CONCRETE WORKS OF COLORADO Ratification of Contract Mr. Hinson stated that the EURA is responsible for the perimeter improvements to the Phar-Mor site. These improvements include curb, gutter and sidewalks bordering the site. The contractor for Phar-Mor contacted the City and stated that they wanted to pave the parking lot immediately before the asphalt plants closed for the winter, which necessitated getting the perimeter improvements done prior to the paving of the parking lot. Concrete Works of Colorado has worked on other facets of the project and the work has always been very satis- factory. When the contractor working on the Phar-Mor site declined to bid on the perimeter improvements , Concrete Works of Colorado was contacted to see if they were interested. They submitted a bid for the project, not to exceed $24,000. A memorandum was mailed to members of the Authority, and a follow-up telephone call was made to get approval to go ahead with the perimeter con- crete work, which approval was given. The perimeter concrete work has been completed, and the paving of the parking lot is nearly completed as of 5:00 p.m. this date . Mr. Hinson asked that the Authority ratify the telephone vote approving the letting of the contract to Concrete Works of Colorado. -1 - 9E Mcintyre moved: Minnick seconded: The Urban Renewal Authority ratify letting the contract for perimeter concrete work on the Phar-Mor site to Concrete • Works of Colorado for an amount not to exceed $24,000. AYES: NAYS: ABSENT: ABSTAIN: Tatton, Voth, Byrne, Mcintyre, Minnick None Cole, Keena None The motion carried. IV. 1989 BUDGET Resolution #12, Series of 1988 Mr. Hinson stated that Resolution #12, Series of 1988 has prepared, which sets forth the source of funds for the 1989 Budget, and the proposed application of those funds. Mr. Hinson suggested that the Authority might wish to go into Executive Session for a more in-depth discussion of Budget issues, particular- ly those dealing with right-of-way negotiations. Minnick moved: Tatton seconded : The Authority go into Executive Session to discuss Budget AYES: NAYS: ABSENT: ABSTAIN: Voth, None Cole, None issues. Byrne, Mcintyre, Minnick, Tatton Keena The motion carried. * * * * * * * * * * Minnick moved: Mcintyre seconded: The Authority come out of Executive Session. AYES: NAYS: ABSENT: ABSTAIN: Byrne, Mcintyre, Minnick, Tatton, Voth None Cole, Keena None The motion carried. Tatton moved: Minnick seconded: The Urban Renewal Authority approve and adopt Resolution #12, Series of 1988, A RESOLUTION OF THE ENGLEWOOD URBAN RENEWAL AUTHORITY ADOPTING THE 1989 BUDGET. AYES: NAYS: ABSENT: ABSTAIN: Mcintyre, Minnick, Tatton, Voth, Byrne None Cole, Keena None The motion carried. -2 - • • ' • • • Mr. Hinson stated that , as had been mentioned previously, one means of funding the 1989 Budget for the EURA is to borrow the funds. It has been suggested by City Council that the EURA contact the Englewood Non-Emergency Employees Re- tirement Board to determine if that Board would "invest" in the project by loaning to EURA the funds required for the 1989 Budget. A Subordinate Debt Note R-3, similar to those signed for the loans from the City, has been pre- pared, as has a Resolution, #13 of 1988. Ms. Daugherty entered the meeting at 5:55 P.M. and took her chair with the members of the Authority. Mr. Hinson stated that any loan from the Non-Emergency Employees Retirement Board to the EURA would have to be approved by the City Council. He reminded the Authority that when Council first suggested this funding source, Council- man Koltay had put forth the idea of guaranteeing the interest and principle to allay any concerns of the Board regarding risk. He mentioned that the Au- thority might want to ask Council to provide such a guarantee. Mr. Hinson reviewed the process to be pursued on this request for a loan: 1) The Authority should pass a resolution approving its 1989 Budget and establishing the funds needed through a Subordinate Debt arrangement. 2) The Authority should then pass a resolution authorizing the issuance of the Subordinate Debt Note contingent upon Council's approval of the issuance of the additional debt. If the Authority felt the Note should be guaranteed, the Resolution could also be contingent upon such a guarantee from Council . 3) A formal request will be conveyed to Council from the Authority to act on the guarantee and additional debt approval. 4) A formal request will be conveyed to the Retirement Board from the Authority for the loan. Mr. Hinson stated that an 8.1% interest rate is proposed for the Subordinate Debt with the Retirement Board, the same rate of interest that the City in- vestments earned in 1987 and the rate charged by the City on Notes R-1 and R-2. Discussion ensued. Minnick moved: Mcintyre seconded: The Englewood Urban Renewal Authority approve and adopt Resolution #13, Series of 1988, A RESOLUTION OF THE ENGLE- WOOD URBAN RENEWAL AUTHORITY TO ISSUE A PROMISSORY NOTE TO THE CITY OF ENGLEWOOD NON-EMERGENCY EMPLOYEES RETIREMENT BOARD. AYES: NAYS: ABSENT: ABSTAIN: Mcintyre , Minnick, Totton, Voth , Byrne None Keena , Cole None The motion carried. - 3 - ' Minnick moved: Mcintyre seconded: The Urban Renewal Authority ask the Englewood City Council to guarantee to the Englewood Non-Emergency Employees Re-• tirement Board that any loan made to the EURA will be repaid. AYES: NAYS: Mcintyre, Minnick, Totton, Voth, Byrne None ABSENT: ABSTAIN: Cole, Keena None The motion carried. V. SOUTH ACOMA STREET 3400 Block South Mr. Hinson stated that a meeting had been held with the merchants in the 3400 block of South Broadway regarding proposed usage of the vacant land owned by the EURA on the east side of the 3400 block of South Acoma Street. These mer- chants want to see an interim use of the site as a parking lot until such time as the economy picks up sufficiently to warrant development of the site. The Authority must make a decision on whether they want to do something with the lot, or leave it vacant. If the Authority determines to develop the lot for an interim use, funds would have to be borrowed from the City to accomplish this. If it is the determination of the Authority that EURA does not want to assume the interim development of the lot, the City Council may want to do something with it. Mr. Hinson stated that he, personally, feels the parking lot is a feasible interim use, and that it is his hope the Authority would give the City of Englewood permission to make the improvements to the lot if • the Authority chose not to construct the lot itself. Because of a lack of operating funds, if a lot were constructed, the City would have to be willing to assume the maintenance costs of the lot. Mr. Hinson reiterated the options for the site set forth in his memorandum to Acting City Manager Vargas on September 22, 1988. Mr. Hinson stated that he had discussed this matter with Authority member Kee- ~---na, who could not be in attendance at this meeting. Ms. Keena does not feel that the Authority should borrow additional money to make the interim improve- ments on the site, because such improvements are not "essential" to the com- pletion of the Downtown Project. Mr. Minnick stated that he did not object to an interim use of the site for parking purposes, so long as the Broadway merchants realize that the land is publicly owned by the Authority, and is not private property. Ms. Daugherty stated that the merchants want a commitment from the City or from the EURA that there will be no further redevelopment in the 3400 block of South Broadway, and that if the merchants are willing to make financial in- vestments in their properties they can expect to remain in their present loca- tion for a given length of time. Discussion ensued. Mr. Hinson pointed out that during the course of the entire EURA project, the EURA has cooperated with Council on any and all decisions regarding land ac- quisition, design elements, etc. Any further redevelopment in the City will • have to be a conscious decision on the part of both the EURA and the City -4 - • • • Council. If it is the determination of the City Council that there shall be a moratorium on redevelopment, the Authority would honor that moratorium if they are so informed. Mr. Minnick stated that if the Authority received an offer to purchase from a redeveloper, they would obligated to sell to pay off the bonded indebtedness. Mr. Totton asked if Mr. Hinson had talked to Mr. Bell, EURA Financial Advisor, and to our bond counsel about possible ramifications if funds are expended on the interim use of the site as a parking lot. Mr. Hinson stated that he had not discussed the issue with Mr. Bell or Mr. Johnson. He pointed out improve- ment of the site for parking purposes would be providing a method to generate increased sales in the downtown area. Mr. Voth stated that the Authority needs to get an opinion from our legal counsel on whether the Authority can make a commitment regarding the length of time the land can be used for an interim use. Ms. Daugherty stated that the rumor is that the City Council is willing to make a five~year commitment, and that any businessman who might borrow funds to improva ~the facade of the store would have that debt "forgiven" if his property is condemned for redevelopment. Mr. Hinson stated that the Broadway Revolving Loan Program does apply to all businesses in Englewood, and noted that the City could pass an ordinance providing that businesses with loans from the Program that are condemned would have the loan "forgiven." Ms. Cole entered the meeting at 6:25 p.m. and took her chair with members of the Authority . Mr. Totton stated that he would like to see a parking lot on the site as an interim use, but advised that if a parking lot is chosen as the interim use that it be a "first class" parking lot. Mr. Totton stated that ''nothing is so p~rmanent as something temporary". "-- Mr. Hi~son stated that he understood that City Council has identified $53,000 that may~...be used to provide some landscaping and a base coarse for the lot. This dues not include asphalt paving, which would require additional funds. Mr. Totton asked if the $53,000 would be a grant from the City, or would it be another ''loan". Mr. Hinson stated that he understood it would be a loan, but that the Authority could ask that the funds be "given" for the improvement of the lot on an interim basis. Ms. Hanson asked if there was investigation of "paid" parking on the lot. Have any estimates or projections of revenue been done on the supposed in- crease in sales revenue. Mr. Hinson said that there was no way to project increased sales taxes attributable to increased parking availability, and that there were no pay lots outside of downtown Denver, so it is improbable that a pay lot would be used at all. Mrs. Cole asked if there had been discussion on leasing the lot to the mer- chants. Mr. Hinson stated that this possibility also relates to the fact that the merchants want a time commitment. Mr. Minnick pointed out that the EURA does not want to get in the position of giving the merchants a "leasehold" interest in the property, either. -5 - ',,· Mr. Totton asked when the construction equipment was to be moved out. Ms. Ragland estimated that Lillard & Clark should be finished with the job within • the next two weeks. Ms. Ragland pointed out that if a parking lot with paving is the chosen interim use, one-half of the block would be done at a time, and there could be no use of the half block on which the work was being done. She discussed the paving process and what is entailed in determining the drainage and preparing the ground for the asphalt paving. Mr. Hinson asked the pleasure of the Authority: 1) Do we want to ask City Council to "give" the money to the Authority to improve the lot on an interim basis; 2) Does the Authority want to ask the City Council to "loan'' the money to the EURA; or 3) Does the Authority want to give City Council the right to develop and maintain the parking lot, while the Authority retains ownership of the land. Mr. Mcintyre suggested that it would be worthwhile to come up with the addi- tional funds required to pave the lot. Otherwise, trying to remove snow from a lot with a base coarse will be extremely unsatisfactory during the winter months . .. · Discuss1on ensued. Mr. Hinson suggested that an Agreement could be drafted which would give the City the right-of-entry to the site for the interim development, but the Authority would retain the right to sell the site for redevelopment. Another option is for the Authority to lease the site to the City for a nominal amount per year. This lease could be on a year-to-year basis, and the City would need to be responsible for the development and main- tenance of the parking lot. Ms. Hanson suggested that if the Authority leases the site to the City, the • EURA is, in effect, making a commitment. She asked if the EURA would be creating problems for itself if the land is needed for other forms of revenue and it is tied up in a lease with the City. Mr. Voth suggested that the City would have to purchase the site if they wanted to preserve it for parking pur- poses and the Authority needed the site for redevelopment. Mr. Hinson stated that he would discuss all the issues raised by the Authority members with Steve Bell, Greg Johnson, and Paul Benedetti before proceeding with the lease to the City. Totton moved: Cole seconded: The Urban Renewal Authority proposes to lease the east side of the 3400 block of South Acoma Street to the City of En- glewood for $1/year, with the provisions that: 1) The proposed lease shall have the approval of the Le- gal Counsel to the EURA. 2) The City of Englewood will be responsible for develop - ment of the site for an interim use. Further, the City will assume responsibility for maintenance of the site and carry proper insurance on the site during the period of the interim use. 3) If the City wants to develop a lease agreement with • the Broadway merchants for use of the lot, they may do -6 - • • • so, but such agreement shall not be binding on the Authority . 4) The lease agreement with the City shall be cancelable if a redevelopment proposal is acceptable to EURA and the City is submitted by a redeveloper. 5) The City of Englewood shall have the option to pur- chase the site at fair value. Mr. Totton stated that any agreement made on the land between the City and the merchants has to take into account the obligation of the EURA to develop the land for revenue to pay off the bond issue. Discussion ensued. The vote on the motion was called. AYES: Minnick, None Keena None Totton, Voth, Byrne, Cole, Mcintyre NAYS: ABSENT: ABSTAIN: The motion carried. VI. EXECUTIVE DIRECTOR CONTRACT EXTENSION Mr. Voth suggested that a sub-committee of the Authority be appointed to pre- pare a performance review for the Executive Director for the past year, and to make a recommendation on extension of the contract for an additional year . Ms. Byrne, Mrs. Cole and Mr. Minnick volunteered to serve on the committee to prepare the performance review/contract extension of the Executive Director. Mr. Hinson asked that if the Authority determined to extend his contract for another year, that the salary remain at the current level. He pointed out that it has been the determination of City Council that department heads shall not receive a salary increase in 1989, and he felt that this position should be in line with that decision of the Council. VII. FINANCIAL REPORT Expenditure Report Investment Report Tax Increment Report Mr. Hinson stated that there is one more payment to be made to Lillard & Clark, and that should be the end of their involvement in the Little Dry Creek improvements . The Authority still has retainage from the RBI Contract, and will continue to hold this retainage until their insurance company states in writing that claims against RBI by adjoining property owners will be covered. Mr . Hinson discussed the revenue projections, and the projected amount that will have to be drawn from the reserve fund to meet the debt service payment in December. He noted that the project i ons presented at the last meeting are holding firm. -7 - Mr. Hinson reviewed the tax increment report, and noted that there should be the first ever incremental payment to EURA in November of this year from Area #1. Area #2 has far exceeded the base level, and has been submitting tax in-• crement revenue all year. Mr. Hinson stated that he has asked the County Assessor to identify tax credits which may apply against property tax collections next year. A reply has not been received at this point in time. VIII. CONSTRUCTION REPORT. Ms. Ragland stated that work is progressing on the lighting around the foun - tains and along the Creek. Lillard & Clark are pretty well finished with their portion of the project. IX. PROGRESS REPORTS Mr. Hinson stated that tenant finish is now being done on the Chinese res- taurant which is going in to the Englewood Marketplace. Sound Warehouse is signed and will have a 12,000 square foot area. The Phar-Mor construction appears to be on schedule. The contractor antici- pates being able to turn the building over to Phar-Mor for tenant finish by the first of December. Work is progressing on Trolley Square. They have three tenants, and have had several inquiries from possible tenants. Ms. Daugherty asked that construction trailers affiliated with the construe -• tion of the Sound Warehouse building not be parked on the 3400 block of South Acoma if at all possible. Mr. Hinson stated that the construction equipment will have to be housed on-site. There being no further business to come before the Authority, the meeting ad- journed at 7:20 p.m. ~ertrude G. Welty Recording Secretary -8 - •