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HomeMy WebLinkAbout1988-04-06 EURA MINUTES• • • ENGLEWOOD URBAN RENEWAL AUTHORITY APRIL 6, 1988 I. CALL TO ORDER. 9 8 The regular meeting of the Englewood Urban Renewal Authority was called to order at 5:40 P. M. by Chairman Robert Voth. Members present: VanDyke, Voth, Cole, Mcintyre, Minnick, Tatton Hinson, Executive Director/Executive Secretary Members absent: Keena, Daugherty, Hanson Also present: Harold J. Stitt, Assistant to the Director Paul C. Benedetti, EURA Legal Counsel Steve Bell, Financial Advisor, Prudential-Bache Steve Lyon, Hanifen-Imhoff Densel Ragland, Director of Engineering Services Mary Anne Shube, Linear Properties of Colorado Andy Mccown, City Manager Ron Fish, Planning & Zoning Commission II. APPROVAL OF MINUTES . March 2, 1988 Chairman Voth stated that the Minutes of March 2, 1988 were to be considered for approval. Mcintyre moved: Cole seconded: The Minutes of March 2, 1988 be approved as written. The motion carried, and Chairman Voth declared the Minutes approved as written. III. LINCOR PROPERTIES OF COLORADO, INC. Mr. Hinson stated that Ms. Mary Anne Shube was present to update the Authority on the status of negotiations with the anchor tenant. Mr. Hinson emphasized the need for confidentiality on the part of all persons regarding discussion of these negotiations. Copies of Ms. Shube's latest report were submitted to members of the Urban Renewal Authority. Ms. Shube stated that negotiations with the anchor tenant are going well at this point in time. While the commitment on the choice of site was given by the anchor six or seven weeks ago, Linear did not receive a copy of the lease until March 18. They have had their legal staff working full time on this lease, and a number of changes have been suggested and negotiated through con- ference calls. Ms. Shube stated that the next draft of the lease should be delivered to Linear on Monday, April 11, and another conference call is scheduled for Tuesday. If provisions of the lease have changed considerably from what was negotiated through the previous conference call, staff members from Linear will fly to Ohio to negotiate the remaining provisions of the -1 - lease. Ms. Shube stated that she felt it was a realistic estimate that the lease could be ready for signature by April 22. Ms. Shube estimated that if • the lease is signed on April 22, they could close on the property on April 29. Mrs. Hanson entered the meeting at 5:50 P. M. Ms. Shube stated that Linear has two commitments from financial institutions. Ms. Shube pointed out that they are continuing to negotiate with both lenders, but that any loan is subject to the signing of the lease, which is subject to approval of the installation of a sign in the Englewood Parkway median. Ms. Shube stated that Linear hopes to break ground in very early June. They have a nine month construction schedule, but the anchor tenant could possibly have their building completed within six months. The anchor has a 60 day fix- ture period following completion of the structure, and it is possible that the anchor tenant could be opening for business at approximately the same time the remainder of the development is being completed. Mr. Hinson stated that there are three very important dates for the Authority to be aware of: 1) Waiver of the Tenant Contingency and Financing Contingency; 2) Date of Deed, or closing date on the purchase of the land by Linear; 3) Date of completion of construction. Discussion ensued. Mrs. Cole asked if the negotiation of the lease has re- sulted in any changes to the plans as the Authority has seen them. Ms. Shube stated that the most recent plans have indicated the anchor tenant wanted • 50,000 square feet; in the recent conference call she alluded to earlier, the anchor tenant now wants 51,300 square feet. This is a minor change, and would not result in a change in configuration of the buildings. Ms . Shube stated that it is Lincor's hope that the preliminary plans can be submitted by Mon- day, April 11, at the latest, and that the Authority can review them at a spe- cial meeting on April 13. Mr. Hinson stated that the location of the structures is pretty well nailed down. There are sewer lines within the site that will have to be relocated, and the intersection of Girard, Cherokee, and Englewood Parkway will have to be constructed per direction from the City Council . Mr. Hinson discussed the issue of sign installation in the Englewood Parkway median just north of U. S. 285. This issue has been sent to the State Attor- ney General's office, and has been sent back to the State Highway Department . Representatives of the State Highway Department have indicated a willingness to work with the Authority in resolving this matter, and the EURA staff is trying to schedule a meeting regarding this matter within the next few days. Mr. Tatton asked if the dates of April 7 and 17 as set forth in Resolution #6, Series of 1988, needed to be changed. Mr . Hinson suggested that the dates of April 7 and 17 were appropriate for Section 1 of the proposed Resolution, and that a Section 2 should be added setting forth the dates of April 22 and April 29. - 2 - • • • • Totton moved: Cole seconded: The Englewood Urban Renewal Authority approve and adopt Resolution #6, Series of 1988, A RESOLUTION OF THE ENGLE- WOOD URBAN RENEWAL AUTHORITY AUTHORIZING AN AMENDMENT TO THE AGREEMENT FOR DISPOSITION AND REDEVELOPMENT BETWEEN THE AUTHORITY AND LINCOR PROPERTIES OF COLORADO, INC., ratify- ing the amendment to the Performance Schedule of the ADR with Lincor Properties of Colorado, Inc. AYES: NAYS: Cole, Mcintyre, Minnick, Totton, VanDyke, Voth None ABSENT: Keena ABSTAIN: None The motion carried. Totton moved: Minnick seconded: That Resolution #6, Series of 1988, be amended to include a Section 2, setting forth a change of date for the End of Anchor Tenant and Financing Contingency Period for Re- developer to April 22, and a change on the Date of Deed to April 29. AYES: NAYS: ABSENT: ABSTAIN: Mcintyre, None Keena None Minnick, Totton, VanDyke, Voth, Cole The motion carried. IV. FINANCIAL ADVISOR Steve Bell, Prudential-Bache Steve Lyon , Hanifen-Imhoff Mr. Hinson welcomed Mr . Bell and Mr. Lyon to the meeting. Mr. Bell addressed the Authority. He stated that with the take over of E. F. Hutton by Shearson/Lehman, there were a number of senior Hutton officers who were not retained, and he was one of them that was let go in December of 1987. Mr. Bell stated that he is now with Prudential-Bache in Denver . Mr. Bell stated that he has enjoyed a long relationship with the EURA, and wanted the members to know that he would welcome a con t inuation of that relationship in his new position with Prudential-Bache . He pointed out that while he was with E. F. Hutton, an agreement wi th the EURA, E. F. Hutton, and Hanifen-Imhoff wa s signed in 1985, and he would suggest that t his Agreement be terminated inas- much as the E. F. Hutton company no longer exists . Mr. Bell suggested that if the Authority was interested in a similar agreement with Prudential-Bache and Hanifen-Imhoff, he and Mr . Lyon would like to work with the Authority. Mr. Lyon stated that he has personally had a long association with the City, as he is a former Director of Finance, and that as a member of the Hanifen- Imhoff staff he is supporting Mr. Bell and their association with the Authority. Members of the Authority thanked Mr . Bell and Mr. Lyon for their attendance. -3 - V. SUBORDINATE DEBT BETWEEN EURA AND CITY OF ENGLEWOOD Amendment of Loan Agreement Mr. Hinson stated that the Subordinate Debt Agreement between the EURA and City of Englewood cites the figure of $788,000, when the City is actually loaning the Authority $778,000. City Council has asked that the exact figure be cited in the loan documents, and a resolution to amend the promissory note has been prepared for the consideration of the Authority. Minnick moved: Mcintyre seconded: The Englewood Urban Renewal Authority approve and adopt Resolution #5, Series of 1988, A RESOLUTION OF THE ENGLE- WOOD URBAN RENEWAL AUTHORITY TO AMEND A PROMISSORY NOTE WITH THE CITY OF ENGLEWOOD TO REFLECT A MAXIMUM LOAN AMOUNT OF $778,000 RATHER THAN $788,000. AYES: NAYS: ABSENT: ABSTAIN: Mcintyre, None Keena None The motion carried . Minnick, Totton, VanDyke, Voth, Cole VI. EURA FINANCIAL STATUS Executive Director Hinson discussed the projected expenditures of the Authori- • ty for the completion of the public improvements phases of the downtown re-• development, as well as expenditures for court issues that are yet to be determined. Mr. Hinson cited a construction fund schedule compiled with the assistance of Managed Financial Services, and stated that it appears that the Authority will experience a deficit in August, 1988 unless additional funds are made available to the Authority. Mr. Hinson stated that he had attended the City Council meeting on April 5, and again apprised them of the financial situation the Authority is facing. Mr. Hinson stated that it appears the Au- thority will need an additional $772,000 to meet expenditures projected for 1988, and will need $600,000 for 1989. Mayor VanDyke stated that the City Council is aware of the financial con- straints of the Authority, and will continue to support the EURA in all cir- cumstances. The Council members did ask City Manager Mccown and Executive Director Hinson to explore alternative funding for the $772,000 for the remainder of 1988. The Council wants to find the money within the City bud- gets, rather than going to a long -term bond issue. Mr. Hinson stated that decisions must be made by the Authority, but these decisions will have to be contingent upon the availability of the additional funds. Mr. Hinson stated that the economic climate has not changed apprecia- bly since last fall to warrant a refunding of the Authority's bonds without some financial backing by the City . Mr . Hinson stated that the revenues are coming on line much as was expected, but there is a short term cash flow problem for the Authority's operations, not bond service. Discussion ensued. Mr. Tatton asked about the possibility of putting out a Request for Proposals • on the South Acoma Street site and see if the sa l e and redevelopment of this site could help cover the expenses for 1989 . Mr . Hinson stated that if Linear can close on their site so that the Acoma Street property could be released as - 4 - • • • collateral by the Bank, this would be possible. He stated that he doubted a redeveloper would be interested in the site inasmuch as the property is encum- bered as collateral for the loan the Authority has with First National Bank. Mr. Hinson reviewed the expenses of the Authority, such as the award given in the Physical Whimsical case. Other court cases are the Mountain Bell case, the lawsuit filed by Wagner's, and the case yet pending on the First National Bank property that was taken for the Parkway. Mr. Hinson discussed the case on the First National Bank property in detail, and pointed out that the esti - mated cost is only an estimate --the final award could be considerably larger or smaller than the amount cited . Mrs. Hanson asked about the cost figures cited for the Acoma Street develop- ment, and asked what this entailed. Mr. Hinson stated that this was to im- prove the land for an interim use until an RFP is requested and awarded. Mrs. Hanson asked if this was an essential cost. Mr. Hinson stated that it is not an essential expense, and could be eliminated, but cited the commitments to the Broadway merchants to have a connection between the Broadway development and the new development. VII. LOCATION OF INDIAN SCULPTURE Mayor VanDyke stated that further consideration of the proposal to place the sculpture by Mr. John Scott as part of the beautification along Little Dry Creek has resulted in a proposal to place the sculpture at the southwest corner of South Acoma Street and Old West Hampden Avenue. This would allow better visibility and more pedestrian accessibility than the proposed location along South Broadway. Ms. VanDyke stated that this new location has been dis- cussed with Mr. John Scott, and he is very pleased with the proposed location. The issue of liability in the event of personal injury was discussed. Mr. Totton noted that the City has to have liability insurance anyway, and did not feel that there should be special concern because of the sculpture. A revised estimate of costs for placement of the sculpture was given to mem- bers of the Authority. Ms. Ragland noted that the sculpture would be placed in an area that is to be improved with landscaping and the amenities needed for placement of the sculpture are minimal. The new location is pedestrian oriented, and is farther out of the floodway . VanDyke moved: Cole seconded : AYES: NAYS: ABSENT: ABSTAIN: Minnick, None Keena None The Englewood Urban Renewal Authority acknowledges the ac- ceptability of the public area at the southwest corner of South Acoma Street and Old West Hampden Avenue for place- ment of the John Scott Indian monument. Totton, VanDyke, Voth, Co l e, Mcintyre The motion carried . Mr. Marlin Opperman , EURA Legal Counsel, entered the meeting . -5 - VIII. CONTACT FROM DENVER POST COLUMNIST City Manager Mccown stated that he had to leave the meeting shortly, but want- ed to let the members of the Authority know that he had received a telephone call from Denver Post columnist Woody Paige regarding the Trolley Square and redevelopment are~Past columns by Mr. Paige were recalled, and Mr. Mccown stated that he wanted the Authority to be aware that Mr. Paige is writing a column on Englewood. Mrs. Daugherty entered the meeting at 6:35 P. M. IX. PHYSICAL WHIMSICAL Mr. Hinson stated that Mr. Opperman and Mr. Benedetti have been asked to dis- cuss the recent monetary award to Physical Whimsical owners, and the respon- sibilities for payment of that award. Mr. Opperman asked that the Authority go into Executive Session. Minnick moved: Totton seconded: The Urban Renewal Autho r ity go into Executive Session. AYES: NAYS: Totton, VanDyke, Voth, Cole, Mcintyre, Minnick None ABSENT: Keena ABSTAIN: None The motion carried. * * * * * * * * * * Ms. VanDyke excused herself from the meeting at 7:15 p.m. * * * * * * * * * * Minnick moved: Cole seconded: The Urban Renewal Authority come out of Executive Session. AYES: NAYS: Voth, Cole, Mcintyre, Minnick, Totton, VanDyke None ABSENT: Keena ABSTAIN: None The motion carried. Totton moved: Cole seconded: The Urban Renewal Authority authorize Mr. Marlin D. Opper - man and Mr . Paul C. Benedetti to file an appeal on the decision rendered by the Courts in the Physical Whimsical case, that the required deposit be made to the Courts, and that collection of the deposit and attendant court costs from JWM be pursued. AYES: Voth, Cole, Mcintyre , Minnick, Totton NAYS: None - 6 - • • • • • • ABSENT: VanDyke, Keena ABSTAIN: None The motion carried. X. GUILFORD/GROSS SETTLEMENT Mr. Hinson reviewed the lawsuit filed by Mr. Buechler on behalf of Mr. Lawrence Guilford, owner of a strip of land 1 foot wide by 125 feet in length. Mr. Guilford had initially asked for $21,250, but after negotiation they have offered to settle the matter for $5,000. Mr. Opperman discussed the costs that could be accrued if the matter was pursued through a condemnation suit, and stated that he would recommend settlement for $5,000. Discussion ensued. Cole moved: Minnick seconded: The Urban Renewal Authority accept the settlement offer of $5,000.00 made by Mr. Buechler on behalf of Mr. Guilford/ Ms. Gross. This acceptance is contingent upon Mr. Guil- ford's acquisition of Ms. Gross's interest in the property to the satisfaction of the EURA Title Company. AYES: NAYS: Cole, Mcintyre, Minnick, Tatton, Voth None ABSENT: ABSTAIN: Keena, VanDyke None The motion carried . XI. FINANCIAL REPORTS. Investment Report Expenditure Report Mr. Hinson asked if members of the Authority had any questions regarding the financial reports. No questions were posed. XII. CONSTRUCTION REPORT. Lillard & Clark Mr. Hinson and Ms. Ragland discussed handicapped access to the plaza areas along Little Dry Creek. Ms. Ragland indicated locations of handicapped ramps to a portion of the plaza area, and indicated one location where she had given direction that a ramp be installed to provide access without wheelchair bound citizens having to go into the street. Alternate proposals for provision of direct handicapped access from the Pier I store to the plaza area abutting Bannock Street were discussed. There is direct handicapped access from the Pier I store to the Acoma Plaza area, but there is another elevation change from the Acoma Plaza to the Bannock Plaza area. Ms. Ragland stated that during discussions with Trammell Crow representatives, the issue of handi- capped access arose and was agreed to by them, but there is no written record of this discussion. Discussion ensued. Ms. Ragland stated that she needs to be able to inform the contractor of the determination of the Authority. The Contractor is ready to pour the lake bot- tom, and wants to begin on the Plaza area. If handicapped ramps are to be placed in this area, it should be integrated with the construction plans now. -7 - The Authority discussed the issue at length. It was the consensus of the Au- thority that if the access that is being provided meets the legal require-• ments, additional access should not be an issue. XIII. LITTLE DRY CREEK. Ms. Ragland discussed a memorandum setting forth the latest estimated cost for completing Little Ory Creek west of Broadway. These costs include such things as trash cans, bike racks, benches, landscaping, etc. Questions were posed on the cost of trash cans and the type of landscaping which is to be provided. Mr. Hinson stated that the Roecker Design Group was engaged several years ago to come up with a plan to coordinate the amenities throughout the downtown area. The style and color of trash cans, for instance, are predetermined ac- cording to this overall plan. Ms. Ragland stated that the landscaping is to provide shrubs to be planted in between the rock areas that will be on the slopes of the Creek. Mrs. Hanson suggested that the staff request a landscape plan that can be accomplished for a given price. Mr. Hinson suggested that he is to meet with City Council on April 11 regard- ing the additional funding requested by the Authority and that he should be able to tell the Authority at the special meeting on April 13 whether those funds are available or not . This could have an effect on the amenities sug- gested in Ms. Ragland's memorandum. XIV. RANDALL & BLAKE, INC. Mr. Hinson stated that the Engineering staff has conducted a walk-through of the RBI portion of the project, and has submitted a seven page punch-list of items that need to be completed by RBI before acceptance of the job by the Authority. XV. PRELIMINARY PLANS Lincor Properties of Colorado Mr. Hinson stated that if the preliminary plans are presented as hoped, a spe- cial meeting will be held on April 13 to review these plans. Other matters may be included on the agenda, as well. XVI. FINANCIAL ADVISOR AGREEMENT. Mr. Minnick suggested that action be taken to terminate the agreement with E. F. Hutton and the Authority, as suggested by Mr. Bell . Minnick moved: Mcintyre seconded: The Urban Renewal Authority terminate the agreement signed in 1985 between the EURA and E. F. Hutton/Hanifen-Imhoff. The staff is directed to develop a similar agreement with Prudential -Bache and the EURA; if Prudential-Bache wants to continue the relationship with Hanifen-Imhoff, it should be so noted in the Agreement. AYES: NAYS: Mcintyre, Minnick, Tatton, Voth, Cole None - 8 - • • • • • ABSENT: Keena, VanDyke ABSTAIN: None The motion carried. XVII. LAWSUIT UPDATE Mr . Hinson stated that the briefs on the Mountain Bell case are to be filed by May, and a decision is expected in June. The Evaluation Hearing on the Hirsche Condemnation case is going well. The lawsuit filed by Wagner's is scheduled to be heard later this summer; this is another instance wherein the financial responsibility is that of S. Bud Brady. The City of Englewood has been named as a third party defendant in a lawsuit filed by owners of property at 3375 South Bannock Street. XVIII. PUBLIC FORUM. Mr . Voth asked Mr . Fish if he wished to address the Authority. Mr. Fish de- clined, but expressed his appreciation for the opportunity to attend the meeting . The meeting adjourned at 8:20 P.M . Recording Secretary -9 -