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HomeMy WebLinkAbout1989-07-12 EURA MINUTES' CITY OF ENGLEWOOD URBAN RENEWAL AUTH ORITY JULY 12, 1989 I. CALL TO ORDER. CJ F The Special Meeting of the City Planning and Zoning Commission was called to order at 5:45 P.M. by Chairman Voth. Members present: Minnick, Voth, Byrne, Cole, Mcintyre Wanush, Executive Director/Executive Secretary Members absent: Keena, Tatton Hanson, Alternate Member Daugherty, Alternate Member Also present: Harold J. Stitt, Assistant to the Director Steve Bell, Financial Advisor Carolyn Justice, Legal Counsel II. APPROVAL OF MINUTES May 3, 1989 Chairman Voth stated that the Minutes of May 3, 1989 were to be considered for approval. Minnick moved: Byrne seconded: The Minutes of May 3, 1989 be approved as written. AYES: NAYS: ABSENT: ABSTAIN: Voth, Byrne, Cole, Mcintyre, Minnick None Keena, Totton None The motion carried. III. 3400 BLOCK SOUTH ACOMA STREET Farmer's Market Mr. Wanush stated that when the Farmer's Market was looking for a new location in downtown Englewood, the 3400 block of South Acoma Street was suggested. Inasmuch as this property is owned by the EURA, a telephone poll was conducted to determine if members of the Authority would approve the use of the land for this purpose for one day per week, from July 11 through October. Mr. Wanush stated that by telephone poll the members gave approval for use of the site, and the staff is asking that this decision be ratified by formal vote at this meeting. Cole moved: Minnick seconded: The Englewood Urban Renewal Authority ratify approval of the use of the 3400 block of South Acoma Street (east side) for the Farmer's Market from July through October. - 1 - AYES: NAYS: ABSENT: ABSTAIN: Voth, Byrne, Cole, None Keena, Tatton None The motion carried. IV. TAX ABATEMENT ISSUE Mcintyre, Minnick Property Tax Abatements Mr. Wanush stated that at the meeting of the Authority on May 3, 1989, Ms. Justice was authorized to file suit on the issue of property tax abatements. Mr. Wanush stated that Ms. Justice is in attendance to bring the Authority up- to-date on the status of this issue. Mr. Wanush suggested that this discus- sion should be in Executive Session. Minnick moved: Cole seconded: The Authority go into Executive Session. AYES: NAYS: ABSENT: ABSTAIN: Byrne, Cole, Mcintyre, Minnick, Voth None Keena, Totton None The motion carried. * * * * * * * * * * Minnick moved: Byrne seconded: The Authority come out of Executive Session. AYES: NAYS: ABSENT: ABSTAIN: Cole, Mcintyre, Minnick, Voth, Byrne None Keena, Tatton None The motion carried. Mr. Wanush and Ms. Justice stated that the Authority members would be kept abreast of discussions on the property tax abatement issue. IV. BOND DEBT SERVICE RESERVE FUND Bel-Air Repurchase Agreement Mr. Wanush stated that RCM Government Securities, Inc., has submitted a letter on behalf of Bel-Air Savings requesting that the Authority renegotiate the Repurchase Agreement with Bel-Air Savings. They are requesting that the Au- thority establish a revised drawdown schedule with guaranteed minimum yearly drawdown amounts through 1994, and that the Authority agree not to replace these funds with Bel-Air until after 1994. Mr. Wanush stated that the effect of this request is that the Authority will ultimately lose interest income. The Authority would be forced to drawdown a minimum amount each year, whether needed or not, and could not replenish the reserve fund until after 1994. This would mean that funds not used and to be reinvested, would have to be invested at the current market rate, and not at the guaranteed 9.75% currently - 2 - , realized from the Bel-Air investment. Mr. Wanush stated that Mr. Bell, Finan- cial Advisor to the Authority, is present to discuss the request. Mr. Bell stated that Bel-Air Savings entered into a repurchase agreement with the Englewood Urban Renewal Authority in 1986. At the time the agreement was agreed to by both parties, no one anticipated use of the Reserve Fund to the extent that it has been used. The use of the Reserve Fund has created some "internal accounting" problems for Bel-Air. Mr. Bell discussed the accounting procedures used by Bel-Air as he understands them. Mr. Bell stated that the request to renegotiate the Repurchase Agreement has no advantages for the Au- thority, and that he has made this clear to RCM representatives when he has discussed the matter with them. Mr. Wanush stated that it is his recommendation that the Authority not agree to renegotiate the Agreement. Discussion ensued. It was the consensus of the Authority that the Repurchase Agreement with Be 1-A i r Savings sha 11 not be renegotiated. V. PENNHOUSE APARTMENTS Condemnation Suit Mr. Wanush requested that this matter be discussed in Executive Session. It was moved, seconded, and carried that the Authority go into Executive Session. * * * * * * * * * * It was moved, seconded, and carried that the Authority come out of Executive Session. Minnick moved: Cole seconded: The Urban Renewal Authority accept the offer of PennHouse Apartments to settle Case # 86 CV 2122 for the total sum of $22,629, of which amount $14,140 has already been paid to the Court. AYES: NAYS: ABSENT: ABSTAIN: Mcintyre, Minnick, Voth, Byrne, Cole None Tatton, Keena None The motion carried. VI. SENECA INSURANCE (PENNHOUSE) VS. EURA Damage caused by RBI during Construction Mr. Wanush stated that he has been told by the City Attorney's Office that a settlement has been reached on this case. The RBI Insurance Company handled the case, ~nd had indemnified the EURA. Mr. Wanush stated that he would try to verify settlement of this matter. -3 - VII. SALES TAX REVENUE PROJECTIONS Mr. Stitt discussed the sales tax revenue projections, and emphasized that these projections are just that --projections or "estimates" which are sub- ject to change with the changing of the retail market. Mr. Stitt stated that actual revenues from some of the recent retail outlets have not equaled the projections that were initially made. This reduces the total revenues which were anticipated for debt service, and also affects the amounts that have been drawn from the Reserve Fund for debt service payment. Mr. Stitt discussed the spread sheets that he has prepared on the projections, and stated that he has included a column for "required subsidy" to meet the bond payments. Mr. Stitt pointed out that if the remaining vacant square footage were to be leased, and realize sales at $125/square foot, this would still require drawing on the Reserve Fund. The required subsidy would decrease. Mr. Stitt stated that the revenue from property taxes is $200,000 short be- cause of the method used by the County Assessor in applying tax abatements. The possibility of leasing the vacant area for purposes other than retail was discussed. Mr. Wanush pointed out that leasing the area for any purpose other than retail is of no assistance to the Authority, or to the city as far as sales tax income is concerned. Mr . Wanush stated that he has met with the leasing agents for Phar-Mor Plaza and Trolley Square. He stated that the con- cerns that Phar-Mor Plaza agents have stated is the matter of visibility from U.S. 285. Mr. Wanush stated that the City has taken traffic counts on the streets adjacent to Phar-Mor Plaza to give an indication of the area traffic, and the City will do whatever we can to assist in the leasing of the remaining areas. Mr. Wanush stated that the Trolley Square leasing agents have stated that the parking facilities/availability is a large issue. Another complaint is that the trees planted along South Broadway to beautify the downtown area obscure the signs on the building. Prospective tenants have also talked to downtown merchants, who have run this particular development down; thus, the prospective tenants are not interested in the location . Mr. Wanush stated that he has discussed the matter of image and perception with the EDDA in hopes we can counter this negative attitude that a few downtown merchants may be fostering. Mr. Wanush stated that there is approximately 75,000 square feet of space which is vacant; if this could be leased, and sales of $125/ square foot could be realized, this would bring in an additional $295,000 to help pay off the bonds. Mr. Wanush discussed possible ways to attract pro- spective tenants, including the possibility of buying-down the price per square foot for a period of time. Mr. Voth suggested that if two or th r ee large tenants could be leased up, he is of the opinion that this would turn the project around, and the remainder could be leased. He agreed that the City/Authority may have to look into a subsidized program. Mr. Wanush stated that the Downtown Task Force is looking into possibilities to facilitate leasing of the vacant areas. Mr. Wanush stated that Mr . Stitt's projection reports will be done on a month- ly basis. - 4 - VIII. OLD BUSINESS Mr. Wanush stated that Mountain Miser is leasing an additional 2,000 square feet, which leaves an additional 2,000 square feet in the Marketplace to be leased. Ms. Byrne stated that she had spoken to the managers of Jasmine Chinese Res- taurant regarding the volume of business they did during the Independence Fair, and apparently business was not very good. Discussion ensued. Mr. Voth pointed out that it may take several years of holding the Independence Fair before it "catches on" with the public. Mr. Wanush stated that it appears the First National Bank of Englewood will not sign off on the condemnation action for the Englewood Parkway right-of- way, and that this issue will have to be settled in Court, even though Cleve- Trust has agreed to settle. Mr. Wanush stated that he has understands the papers on the property trade with First Interstate Bank of Englewood will soon be signed. There being no further business to come before the Authority, the meeting ad- journed at 6:40 P.M. Gertrude G. Welty Recording Secretary -5 -