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HomeMy WebLinkAbout1988-03-02 EURA MINUTES• • • ENGLEWOOD URBAN RENEWAL AUTHORITY MARCH 2, 1988 I. CALL TO ORDER. 9 D The regular meeting of the Englewood Urban Renewal Authority was called to order at 5:45 P.M. by Chairman Robert Voth. Members present: Members absent: Also present: Cole, Mcintyre, Tatton, VanDyke, Voth Hinson, Executive Director/Executive Secretary Keena, Minnick, Daugherty, Hanson Harold Stitt, Assistant to the EURA Director Densel Ragland, Director of Engineering Services Greg Johnson, Bond Counsel from Kutak, Rock & Campbell City Manager Mccown Penny Dietrich, Executive Director of the EDDA Rita Hathaway, City Council Member II. APPROVAL OF MINUTES. February 3, 1988 Chairman Voth stated that the Minutes of February 3, 1988 were to be con- sidered for approval. Tott on moved: Mcintyre seconded: The Minutes of February 3, 1988 be approved as written. The motion carried, with Ms. VanDyke and Ms. Cole abstaining. III. SUB OR DI NATE DEBT DOCUMENT Resolution #4, Series of 1988 Mr. Hinson introduced Mr. Greg Johnson, Bond Counsel for the Authority from Kutak, Rock & Campbell. Mr. Hinson stated that Mr. Johnson has drafted a loan document for the consideration of the Authority, which document, if approved, is a pledge on the part of the Authority to repay money loaned to it by the City Council at a future point in time. The loan document sets forth the interest rate to be paid by the Authority, which is the rate of interest real- ized by the City on invested funds in 1987. The document provides for methods to increase the debt limit of the obligation as additional funds are loaned to the Authority by the City, or from any other source. The loan from the City will be repaid from tax increment revenues which are over and above the revenues needed to fund the debt service requirement of the Authority's bond issue. Mr. Hinson stated that the possibility of refunding the bonds had been discussed, but was not pursued when it was determined that the projected in- come level was insufficient to provide the coverage investors would expect. One route that was explored was the issuance of use tax bonds by the City of Englewood on behalf of the Authority, which the City Council elected not to do. City Council preferred to ''loan" the money to the Authority and have a loan agreement approved and signed. - 1 - Mr. Hinson stated that the figure of $788,000 represents the funds that were available to the City Council to loan to the Authority at this point in time; • the loan becomes effective when the funds are drawn on, and the notes would be issued at that time. The Authority has estimated that by June of 1988, the total additional funds needed would be approximately $950,000. Ms. VanDyke asked if the City were to loan additional funds to the Authority at a later point in time, would a new loan agreement have to be drafted, or could it be accomplished by an amendment to the document before the Authority now. Mr. Johnson stated that future loans from the City could be accomplished with an amendment to the existing document. Mr. Johnson stated that he and his firm have acted as bond counsel for the Authority for some period of time, and handled the first bond issue in 1985, and also the bond refunding issue in 1985. When the initial bond issues were done, the option to have subordinate debts was created, which means that the repayment of the bonds will have top priority, and the City will assume the subordinate position on repayment of the funds loaned to the Authority. In following the subordinate debt scenario, the Authority does not have to go back to the bond holders so long as the repayment is limited to the "excess" tax increment funds over and above the funds needed to service the bond issue. Mr. John Scott and Ms. Rosemary LaPorta entered the meeting. Mr. Johnson further discussed the repayment of the loan to the City, stating that in the event tax increment funds in excess of those needed to service the bonds are not available, the payments of principal and interest to the City • will be deferred, but interest will continue to accrue. The Agreement does not preclude the EURA from using funds from other sources, such as land sales, to repay the loan to the City. Or, if a bond refunding is done in the future, the City may be repaid with funds from the refunding. This loan agreement is structured so the debt can be repaid at any time. Mr. Johnson stated that a financing statement will have to be signed, and will be filed with the Secre - tary of State's Office. Discussion ensued. Mr. Tatton asked if he understood correctly that the EURA will still be able to refund bonds at a later date, and could pay the City off at that time. Mr. Johnson stated that this is correct. Ms. VanDyke asked if there was any value to be realized by the City lending these funds to the Authority. Does this give greater strength to an eventual bond refunding? Ms. Keena entered the meeting. Mr. Johnson stated that the City's lending the funds does indicate support for the project, and that the Authority needs to develop a history of tax incre- ment revenues. Mr. Mcintyre asked if additional funds had to be borrowed by the Authority, did the Authority have to go back to the City to request additional funds, or could the loan be secured from another institution. Mr. Johnson stated that the Authority could borrow additional funds from either the City or another • institution, but if more than the $788,000 set forth in this loan document were to be borrowed, the Authority would have to have the approval of the City to do so. - 2 - • • • M . Voth asked the pleasure of the Authority on the Subordinate Debt Document . Totton moved: Cole seconded: AYES: NAYS: ABSENT: ABSTAIN: Mcintyre, None Minnick None The motion carried. The Englewood Urban Renewal Authority approve and adopt Resolution #4, Series of 1988, A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE ENGLEWOOD URBAN RENEWAL AUTHORITY AU- THORIZING, APPROVING AND DIRECTING A BORROWING FROM THE CITY OF ENGLEWOOD, COLORADO IN A MAXIMUM PRINCIPAL AMOUNT OF $788,000 TO BE EVIDENCED BY ONE OR MORE INSTRUMENTS DESIGNATED AS "ENGLEWOOD URBAN RENEWAL AUTHORITY, SUBORDI- NATE TAX INCREMENT REVENUE NOTES (ENGLEWOOD DOWNTOWN RE- DEVELOPMENT PROJECT) SERIES 1988A," TO FINANCE CERTAIN PUBLIC IMPROVEMENTS AND UNDERTAKINGS IN CONNECTION WITH THE "ENGLEWOOD DOWNTOWN REDEVELOPMENT PROJECT," AN URBAN RENEW- AL PROJECT BEING UNDERTAKEN BY THE AUTHORITY PURSUANT TO THE "ENGLEWOOD DOWNTOWN REDEVELOPMENT PLAN." Tatton, VanDyke, Voth, Cole, Keena IV. LITTLE DRY CREEK Beautification Program Mr. Hinson stated that Mr . John Scott had asked to address the Authority on the proposed placement of his Indian sculpture along Little Dry Creek as part of the overall beautification program. Council Member Hathaway stated that she has been involved in discussions with Mr. John Scott regarding the placement of his sculpture, and introduced Mr. Scott and Ms. Rosemary LaPorta. Ms. LaPorta stated that she is President of the Englewood Cultural Center. She has done a study of the Indian tribes that were indigenous to this area, and is of the opinion that Mr. Scott 's sculpture is an historic representation of these native people. Ms. Hathaway pointed out that gold was discovered along Little Dry Creek, and suggested that the placement of the Indian sculpture as part of the Little Dry Creek beautification was appropriate. Mr. Scott discussed the sculpting of the Indian from an Elm tree trunk. He stated that the City has committed to build a pedestal on which to place the sculpture , and that he has refinished the sculpture to provide weather protec- tion for at least an additional four to five years . He has also agreed to replace the original wooden sculpture with a bronze figure . Mr. Totton asked about the possibility of the sculpture being vandalized . Mr. Scott stated that he really didn't fear vandalism, and pointed out that the sculpture had stood on his property for some time both during the time the sculpture was being done and after its completion with no vandalism. - 3 - Ms. Daugherty entered the meeting at 6:20 p.m. and took her chair with the Authority. Mr. Scott stated that a rough estimate of $24,000 has been given for the in- stallation of the iron fence posts, log chain fence, and other amenities he has proposed for the placement of the sculpture. This would include flood lights to light the area at night and meditation benches. Ms. VanDyke commended Mr. Scott on the sculpture and his efforts to find a location for the sculpture. Discussion ensued. Mr. Hinson stated that placement of the sculpture as part of the Little Dry Creek beautification program should be considered by the EURA and City Council jointly as all amenities in the project have been considered. Mr. Hinson pointed out that the amenities would have to tie into the other improvements along Little Dry Creek. The grade of the peninsula area considered for placement of the sculpture was discussed. Ms. Ragland stated that this area will be filled to street grade, and will be out of the flood plain. Further brief discussion ensued. Mr. Voth stated that if the space is available to accommodate the diorama proposed by Mr. Scott, he is of the opinion it is a good idea. Keena moved: Cole seconded: The Urban Renewal Authority recommend that City Council consider the placement of the Indian sculpture done by Mr. John Scott as part of the Little Dry Creek amenities in the peninsula area just west of South Broadway. AYES: NAYS: Totton, VanDyke, Voth, Cole, Keena, Mcintyre None ABSENT: Minnick ABSTAIN: None The motion carried. V. LINCOR IRREVOCABLE LEASE Sign Mr. Hinson discussed the placement of a sign in the median of Englewood Park- way at U. S. 285 identifying the Lincor Development and the anchor tenants in this development . A request for a variance to the Sign Code was filed, and the request was denied by the Board of Adjustment and Appeals following a Public Hearing on February 10. There have been a number of meetings regarding the placement of the sign since that time with the City Council, and as of February 29, City Council approved an ordinance for issuance of an irrevocable license to the Englewood Urban Renewal Authority, which license may be assig - ned to Lincor, to allow the installation of this sign . The proposed sign will be coordinated in design and color theme with the street signs along the En- glewood Parkway. The City of Englewood will be protected from any liability regarding the sign, and the Englewood Urban Renewal Authority or its assignee will be responsible for the installation, repair and maintenance of the sign. • • Mr. Hinson emphasized that this irrevocable license will be assigned to Lincor • Properties of Colorado upon the closing on the purchase of the Old King Sooper's Site, and all responsibilities pertaining to the sign will belong to Lincor . - 4 - • • • o nci Member Habenicht entered the meeting . Ms. Keena asked if there is any guarantee that Lincor will accept this assign- ment. Mr. Hinson stated that the assignment will be the "right" to erect a sign at this location, and the installation must be tied to the redevelopment agreement with Lincor. Mr. Mcintyre asked if the installation of the sign still has to be approved by the State. Mr. Hinson stated that this is correct. The Attorney General's Office has been contacted and is considering this request, because the State has the right to approve or disapprove placement of signs within 660 feet from the right-of-way of a State Highway. Mr. Hinson stated that it is hoped an answer would be coming from the Attorney General's Office within the next week or two. Brief discussion ensued. Totton moved: Keena seconded: The Englewood Urban Renewal Authority approve the CONTRACT FOR INFORMATIONAL STRUCTURE PURSUANT TO AN IRREVOCABLE LICENSE. AYES: NAYS: ABSENT: ABSTAIN: Totton, VanDyke, Voth, Cole, Keena, Mcintyre None Minnick None The motion carried . VI. FINANCIAL REPORTS Investment Report Expenditure Report Mr. Hinson reviewed the Financial Reports for the Authority, and pointed out the accounts which are earmarked for the retainage from RBI and retainage from Lillard & Clark. VII. CONSTRUCTION PROGRESS REPORT Lillard & Clark Ms. Ragland reviewed progress that has been made by Lillard & Clark on the Little Dry Creek improvements. Council Members Clayton and Koltay entered the meeting. Ms. Ragland stated that the level of work on the project will be increasing with the improvement of weather conditions. VIII. RANDALL & BLAKE Mr. Hinson reviewed meetings that have been held with representatives of Ran- dall & Blake (RBI) regarding their requests for reduction of retainage. Mr. Hinson stated that before any retainage is released, the Authority wants to be sure that RBI's surety is aware of the request and will stand behind its guarantee. Mr. Hinson stated that while there have been no formal claims filed against RBI , there have been statements from three different property owners of possible damage caused by RBI during the course of the Little Dry Creek improvement construction. Mr. Hinson stated that there has not been a - 5 - general walk through of the project, and the start-up date for completion of • the work is slated for April 2. Mr. Hinson stated that he will have a punch list of items to be completed by RBI at the next regular meeting. Mrs. Cole asked how much remained to be done. Ms. Ragland estimated about $25,000 worth of work, primarily miscellaneous items. Council member Kozacek entered the meeting. IX. LINCOR PROPERTIES OF COLORADO, INC. Progress Report Mr. Hinson stated that Lincor representatives have been showing the site to possible financing agencies. The lease with the anchor tenant is being nego- tiated and construction drawings have been received . Mr. Totton inquired about the parking situation on the site . Mr. Hinson stated that the proper number of spaces are provided on-site. Ms. Ragland displayed the parking and traffic flow plan for the Lincor Development, and discussed treatment of Girard Place to handle the traffic. Ms. Ragland stated that three lanes are proposed, with the two exterior lanes being used by through traffic, and the center lane will be used for turning movements. A four-way stop will be installed at the intersection of Girard Place with the exit from City Hall parking lot, and raised medians will be used at the Girard/Cherokee/Englewood Parkway intersection to direct traffic. Council member Kozacek expressed his concerns regarding the turning radius for • delivery trucks. Mr. Kozacek further discussed the restriction of truck traf- fic through the residential area north of Floyd Avenue. Ms. Ragland stated that West Girard Place will have to be signed to eliminate use by delivery trucks because the Girard Place/Cherokee/Englewood Parkway intersection medians will not accommodate turning movements by large vehicles. Council Member Hathaway stated that she has received some complaints on the use of South Cherokee Street and South Fox Street by trucks traveling to and from Dartmouth Avenue. Ms. Hathaway stated that the installation of the stop sign at Fox and Eastman has slowed the use of South Fox by trucks . Council Member Bilo entered the meeting . Councilman Clayton suggested the possibility of using painted medians rather than the raised medians at the Girard/Parkway intersection. Ms. Ragland stated that traffic personnel have recommended the raised median to better channel the traffic flow. Council Member Habenicht suggested that truck traffic should be kept off of South Broadway, and that a loop from Floyd up South Cherokee to West Eastman to South Elati and back to U.S. 285 be used. Ms . Habenicht expressed her opinion that the imposition of the delivery trucks onto South Broadway would "harm" Broadway, and again urged that the truck traffic should be kept on South Cherokee and South Elati Streets. x. ENGLEWOOD MARKETPLACE Progress is continuing on construction of the Englewood Ma r ketplace. - 6 - • . . • • • X . TROLLEY SQUARE . Coast-to-Coast Hardware were concerned that they might not be allowed a load- ing zone on South Bannock Street, but this concern has been resolved, and a loading zone has been approved. Mr. Hinson stated that it is his understanding that JWM Properties has received bids to remodel the structures, but the issue of the ground lease with the City of Englewood needs to be resolved. XII. LAWSUIT UPDATE. Mr. Hinson reported that on the Mountain Bell case the City and EURA have to have their final arguments submitted by March 15. Mountain Bell has two weeks to respond, and the Judge will then make his determination. Mr. Hinson reported on the Physical Whimsical case, which was heard last week. Four days were devoted to presenting testimony and evidence, and the fifth day was devoted to closing arguments. It had been previously ruled that Physical Whimsical had no right to any leasehold interest in the property, so they had pursued reimbursement on the cost of the fixtures they had placed in the building. A large list of fixtures was compiled by the officers of Physical Whimsical, but no cost figures were included. The valuation determination came in at $261,619.85, and the value of equipment purchased by Mr. Elinoff was estimated at $22,500. Mr. Hinson stated that the Authority has approximately $95,000 on deposit for this case. In the determination of the Court, it is the responsibility of EURA to deposit the amount of the award with the Court. Mr. Hinson offered the opinion to the EURA that when JWM Properties accepted the deed to Trolley Square from Mr. Brady in lieu of foreclosure, they also accepted the respon- sibilities he had agreed to regarding payment of judgments, court costs, etc. Mr. Hinson stated that the EURA legal counsel has briefly conferred with JWM legal counsel , and that he will be meeting with our attorney on March 4. Discussion ensued. The assumption by JWM of Brady's financial obligations was discussed. Mr. Clayton asked if the Authority had received a legal opinion on whether the financial responsibilities were in actuality JWM's. Mr. Hinson reiterated that he will be meeting with our legal counsel on March 4, and an- ticipated that a formal legal opinion will be forthcoming. The possibility of appeal of the decision was also considered. Mr. Totton suggested that possibly JWM might want to have a voice in whether the deter- mination is appealed, if they have the responsibility to pay the judgment. Mr. Hinson stated that there were no representatives of either Brady Corpora- tion or JWM Properties at the trial. There was no further business to come before the Authority, and the meeting was declared adjourned at 7:40 p.m . - 7 - Members of the Authority and City Council then met in an informal discussion • following adjournment of the formal meeting. Gertrude G. Welty Recording Secretary , / -8 - • ' •