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HomeMy WebLinkAbout1990-09-12 EURA MINUTESENGLEWOOD URBAN RENEWAL AUTHORITY September 12, 1990 I. CALL TO ORDER. D R A F T The Spec i a 1 Meeting of the Englewood Urban Renew a 1 Authority was ca 11 ed to order by Chairman James Totton at 5:30 P. M. Members present: Bullock, Byrne, Minnick, Schmidt, Totton Wanush, Executive Director/Executive Secretary Members absent: Voth Daugherty, Alternate Member Also present: Harold Stitt, Planner/Assistant to EURA Director Paul C. Benedetti, EURA Legal Counsel Pamela L. Pepper, Economic Development Administrator Guests: Meno and Betty Wilhelms II. APPROVAL OF MINUTES July 11, 1990 Chairman Totton stated that the Minutes of July 11, 1990 were to be considered for approval. Schmidt moved: Byrne seconded: The Minutes of July 11, 1990 be approved as written. The motion was approved unanimously, and the Minutes stand approved as written. Ill. REVENUE REPORT Mr. Wanush stated that the revenue report and a report on economic development activities both pertain to the EURA Bonds. Mr. Wanush asked Mr. Stitt to dis- cuss the revenue report. Mr. Stitt stated that the data included in the EURA packets did not include the property tax co 11 ected in September, which amount was $44 , 629. 71. The inclusion of this amount brings the total property taxes collected in 1990 to $497,929.16. Total sales taxes collected to date in 1990 are $837,016.97. Total property taxes collected to date are 0.16% ahead of this same time last year, while total sales taxes collected to date are 1.22% behind collections of the same time last year. Mr. Stitt then discussed a revenue projection report, pointing out tha t it appears the Authority will be $15,000+ behind last year's revenues. Because - 1 - of the wide fluctuation in sales tax revenues , and the impossibility to pre- dict property tax revenues, a firm conclusion cannot be reached on whether the ~ full bond payment can be made on December 1. ~ Mr. Wanush pointed out that even with the closure of the 102,000 square foot Buyer's Club, the sales tax revenues are only down 1.2% for the total URA Tax Increment District, which means that some of the businesses are doing very well. Mr. Wanush pointed out that the reports generated by Mr. Stitt do not show interest income . The tax increment revenues are invested every month, and earning interest, and the reserve fund is also earning interest. Ms. Byrne expressed concern on the apparent lack of advertising by Children's Palace. Mr. Bullock introduced Mr. and Mrs. Meno Wilhelms . Mr. Bullock stated that he had recently met with Mr. Wilhelms, and several other bondholders, and invited them to the meeting this evening . Mr . Bullock suggested that the Authority consider holding a public forum wherein bondholders could voice their concerns regarding the projected default on the bonds . Mr . Bullock stated that there were several suggestions made at the meeting he had attended, that he felt were do-able and might assist in the repayment of the bonds . Mr . Bullock stated that he would like Economic Development Administrator Pepper to meet with the people that he met with, to discuss ,steps that are being taken to encourage new businesses to locate in Englewood. It was the consensus of the Authority that a public forum might be a good idea, and dates for this meeting were discussed. It was finally determ i ned that the public forum would be scheduled for the evening of November 1, 1990, at 6:30 P. M., location to be determined by staff . Mr. Wanush asked for clarification on the purpose of the meeting so that this can be adequately transmitted in the notification to be mailed to bondholders. Bullock moved : Minnick seconded: The Englewood Urban Renewal Authority hold a public forum on the evening of November 1, 1990, 6:30 P.M., to which bondholders shall be invited to discuss the EURA Tax Incre- ment Bonds and the potential default on repayment of these bonds. AYES: NAYS: ABSENT: ABSTAIN: Minnick, None Voth None Schmidt , Totton , Bullock, Byrne The motion carried. IV. ECONOMIC DEVELOPMENT PROGRAM Strategic Plan Mr. Wanush introduced Pam Pepper, Economic Development Administrator for the City of Englewood . -2 - Ms. Pepper stated that copies of the Strategic Plan were included in the packets to the Authority Members. The Englewood Economic Development Coal i - ti on, of which Mr. Voth is a member, has worked on the development of this Plan since November, 1989. Ms. Pepper stated that if any members of the Au- thority had questions on the Plan, she would try to answer them. Ms. Pepper stated that many people are concerned about the vacant retail space and what is being proposed to get this space leased. Ms. Pepper discussed joint efforts among the Economic Development Office, the EDDA, and the Chamber of Commerce to produce a brochure containing information on Englewood, and encouraging business location in the City. The City, in conjunction with Sheridan, applied for an Enterprise Zone designation from the State, and has received notification of tentative approval of that designation. This would include the industrial areas of both municipalities, and could prove very helpful in encouraging new businesses, and the expansion of existing busi- nesses. There is an awareness of the need for improved s i gnage and access improvements to major retail centers in the City. Major changes were made in the Sign Code in December, 1989, which will allow larger signage areas for businesses, and funds are requested in the 1991 budget for additional City signage at major points of access. Improved access is being explored, and is in the five-year plan. Ms. Pepper addressed the various ways to "market" the City, including market- ing an individual property, promotion of the City as a whole, and public rela- tions. Ms. Pepper noted that the improvements to Little Dry Creek had been written up in an article in the June issue of National Geographic, advertise- ments promoting Englewood have appeared in the Colorado Business Magazine, and articles have been submitted to the Corporate Financial Officer magazine. Ef- forts have been made to streamline the development review process, which in- cludes "walking" some of the more complex developments through the process. Ms. Pepper stated that a shopper's survey is proposed for 1991, and funds have been requested in the 1991 budget to fund this survey. The results of this survey will be helpful in doing a targeted retail analysis, and to explore the idea of a shopper's shuttle for employees of outlying areas, such as Swedish or employees in the industrial area, to bring them into the downtown area for their lunch hours. Ms. Pepper discussed the marketing of individual properties. Englewood is a member of the Denver Metro Network, which exchanges information on properties available. Ms. Pepper stated that she also works with the individual leasing agents, and has assisted in supplying marketing data and information, or get- ting leads on financing possibilities. Ms. Pepper stated that the EDDA also keeps a property availability list for prospective tenants. Ms. Pepper dis- cussed a seminar pertaining to retail leasing that was held recently in which leasing agents from three Urban Renewal areas, Lincor/Phar-Mor Plaza, Trolley Square, and Buyer's Club, participated. This seminar was co-sponsored by the Chamber of Commerce, and she has received numerous comments on how informative this luncheon/seminar was from those in attendance. Ms. Pepper discussed some of the steps that the various leasing agents are taking to try to encourage tenants to locate in the vacant areas. Some of these proposals include such things as writing down the cost of tenant finish (forgiving monthly rent until the cost of the tenant finish is equaled). The leasing agents are making every attempt to come up with innovative and cre- ative ways to encourage leasing of the space. - 3 - Ms. Pepper stated that a fact sheet was prepared regarding the potential bond default, which was sent to a 11 major businesses. Ms. Pepper suggested that this fact sheet may be good information to have at the public forum on Novem-~ ber 1. The need to rea 1 i ze that the future of reta i 1 deve 1 opments in Englewood is tied to the future of Cinderella City was stressed by Ms. Pepper. Staff is working with representatives of Cinderella City to redevelop this Mall and to encourage new tenants. Cosmetic improvements, such as landscaping were discussed. Ms. Pepper stated that funds have been requested in the 1991 budget for landscaping improve- ments. Ms. Byrne discussed the fact that existing landscaping codes are not being enforced, and cited Araps Restaurant, the former Ralph Schomp parking lot, and the Church on South Broadway in approximately the 3100 or 3200 block as being very derelict in providing landscaping. Mr. Wanush stated that he would check these sites out. Ms. Schmidt inquired if the landscaping require- ments proposed would encourage Xeriscaping to conserve water. She stated that she would like to see Englewood take a leading role in conservation of water through promotion of Xeriscaping. Ms. Pepper stated that incentives for pro- viding Xeriscaping are not proposed. Mr. Bullock stated that the City does have an ordinance requiring that City properties be Xeriscaped. Mr. Bullock stated that a new printing operation, Copy Masters, has recently opened on Englewood Parkway, and he had occasion to talk to the owners of this business. Both gentlemen were very complementary to the City as a whole, and in particular to Ms. Pepper, for assistance in getting their business up and running. Ms. Pepper stated that the City has had a revolving loan fund, initially fun- ded by a Community Development Block Grant, which is used to assist businesses in improvements. The beginning capital was $150,000, and by pay-backs, the program has now 1 oaned over $265, 000. There is current 1 y another $30, 000+ available for loans, with a couple of applications pending. Ms. Pepper stated that she would like to expand this program by encouraging participation by the banking community. Only one business has defaulted on a loan through this program. Mr. Totton thanked Ms. Pepper for her presentation. V. TAX INCREMENT DISTRICT Arapahoe County Assessor Mr. Wanush stated that the Authority has had an on-going problem with the Arapahoe County Assessor for nearly two years regarding the apportionment of assessment reductions between the base amount and incremental amounts in Tax Increment Districts. Mr. Wanush stated that Mr. Benedetti, legal counsel for the Authority, was present to update the Authority on this matter. He asked that this portion of the meeting be in Executive Session since it involved the discussion of legal strategy. Mr. Totton excused himself from the meeting to keep a previous engagement. Minnick moved: Schmidt seconded: The Authority go into Executive Session. -4 - AYES: NAYS: ABSENT: ABSTAIN: Schmidt, Bullock, None Totton, Voth None The motion carried. Byrne, Minnick Ms. Pepper and Mr. and Mrs. Wilhelms left the meeting. * * * * * * * * * * Ms. Daugherty entered the meeting and was seated with members of the Authority. * * * * * * * * * * The Authority came out of Executive Session, and Mr. Minnick assumed the Chair. Mr. Benedetti recapped his discussion asking that the Authority outline what course of action is to be followed, and direct him to pursue that course of action. He asked that the Authority direct Mr. Wanush to authorize him, Mr. Benedetti, to file legal action. Bullock moved: Schmidt seconded: The Englewood Urban Renewal Authority hereby directs staff to authorize the filing of a law suit against the Arapahoe County Assessor prior to the expiration of the Statute of Limitations, said law suit to seek correction of the as- sessment apportionment between the base level and the in- cremental level in Tax Increment districts. All possible administrative remedies must continue to be pursued. AYES: NAYS: ABSENT: ABSTAIN: Bullock, Byrne, Schmidt, Minnick None Totton, Voth None The motion carried. Mr. Greg Fulton, bondholder, entered the meeting. VI. PROPOSED 1991 BUDGET Mr. Wanush presented members with a revised copy of the proposed 1991 Budget. Mr. Wanush reviewed the proposed budget in detail, stating that the estimated 1991 budget is $64,950. Estimated fund balance as of December 31, 1990 is $121,000, and the estimated fund balance at the end of 1991 is $56,050. Mr. Wanush asked if there were any questions. Mr. Bullock questioned the estimated amount of $20,000 budgeted for "bond at- torney". Mr. Wanush stated that as the Authority gets closer to the time of possible default on the bonds, he anticipated the need for additional legal expertise. This is an estimate of possible costs associated with the default. -5 - Byrne moved: Bullock seconded: The Englewood Urban Renewal Authority approve the proposed 1991 Budget. AYES: Byrne, Minnick, None Schmidt, Bullock NAYS: ABSENT: ABSTAIN: Totton, Voth None The motion carried. VII. LEGAL EXPENSES 1990 Year-to-Date Mr. Wanush reviewed a listing of the legal expenses by legal counsel used by the Authority year-to-date. Mr. Bullock expressed his concern on the fees charged by Davis, Graham & Stubbs. He pointed out that this is a large law firm, and clients are billed for every second of time. He personally feels that $190/hour is unreasonable. Mr. Wanush stated that the Authority has no "lasting reason" to stay with the firm of Davis, Graham & Stubbs. Mr. Johnson has not been asked to perform any further work on the bond issue, and the last billing covered work requested through May, 1990. Mr. Bullock stated that if there is a point in time where it would be con- venient to sever the relationship with this law firm, he would like to see the Authority do so, and engage some firm that is less expensive. Ms. Schmidt inquired whether the engagement of a new legal counsel might not be just as expensive up front while they familiarize themselves with the issue. Mr. Johnson is familiar with the bond problems, and we would not be paying for this "duplicative" effort on the part of a new attorney. Discussion ensued. The possibility of members of the Authority being sued by bond holders was briefly discussed. Mr. Bullock commented that members of the Authority were immune from suit other than for gross director negligence. Mr. Bullock reiterated that he felt the Authority should consider engaging a less expen- sive legal counsel. He asked if it would be out of line for him to present a list of names of attorneys who specialize in bond work to the Authority for possible consideration. Ms. Byrne inquired about sending out an RFP for legal counsel. Ms. Daugherty stated that if the Authority went the RFP route, it would cost more money. Mr. Bullock stated that there is a list of attorneys who specialize in the field of bonds, and he could get this information. He stated that it is per- sonal opinion that $150/hour would be the maximum the Authority should pay. VII I. OUTSTANDING ISSUES Mr. Wanush discussed a list of issues rema1n1ng for resolution by the Authori- ty, and contrasted this list to what was yet outstanding in August, 1989. The two primary issues remaining for resolution are the Tax Increment Bond Issue, and the Property Tax Revenue Distribution issue . -6 - IX. OLD BUSINESS Nothing was brought up under Old Business. X. PUBLIC FORUM Mr. Fulton did not address the Authority. XI. DIRECTOR'S CHOICE. Mr. Wanush had nothing to discuss under Director's Choice. XII. COMMISSIONER'S CHOICE. Ms . Byrne suggested that a sign be placed on the north side of Trolley Square giving directions to Phar-Mor Plaza. Ms. Byrne also pointed out that there is no signage on the rear of the Phar-Mor Plaza, and people can drive by on Floyd Avenue and not realize what businesses are there. Mr. Wanush stated that the City will be purchasing the property owned by Mar- shall Friedman in the 3400 block of South Broadway; this is a vacant parcel adjoining the property owned by the EURA. This area will be developed as a focal point for people in the downtown and entering the new development area on Englewood Parkway. Ms. Daugherty discussed the need to improve the appearance of the north wall of the building occupied by Sunset Flowers. Mr. Minnick suggested that information be disseminated to the institutions of higher education in the immediate area, such as Teikyo University, to en - courage those students to shop in the downtown area. Mr. Wanush stated that several members of the community have indicated they would work toward en- couraging those students to partake of Englewood's many offerings . The meeting adjourned at 7:25 P. M. Gertrude G. Welty -// Recording Secretary ,/ - 7 -