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HomeMy WebLinkAbout1990-02-07 EURA MINUTESENGLEWOOD URBAN RENEWAL AUTHORITY February 7, 1990 ANNUAL MEETING I. CALL TO ORDER. The Annual Meeting of the Englewood Urban Renewal Authority was called to or- der by Chairman Robert Voth in Conference Room A. Members present: Byrne, Keena, Minnick, Voth, Schmidt, Bullock Wanush, Executive Director/Executive Secretary Members absent: Totton Daugherty, Alternate Member Also present: Harold J. Stitt, Planner Marlin D. Opperman, Legal Counsel Jim Kreidle, Kirchner-Moore, Bond Negotiation Advisor Mike Johnson, Davis Graham & Stubbs Wm. Hanson, Davis Graham & Stubbs Steve Bell, EURA Financial Advisor, Prudential Bache Greg Fulton, Prudential Bache Larry Malohn, Shearson Lehman William Clayton, Jr., City Councilman Mr. Voth welcomed Mrs. Meredith Schmidt and Mr. Tim Bullock to the Authority. Mrs. Schmidt has just been appointed to a five year term on the Authority; Mr. Bullock has also been appointed to a five year term on the Authority, and is a representative of the City Council. Mr. Voth asked that everyone introduce themselves and that Mrs. Schmidt and Mr. Bullock give a little background in- formation on their interests and occupations. II. APPROVAL OF MINUTES. December 13, 1989 Chairman Voth stated that the Minutes of December 13, 1989 are to be con- sidered for approval. Minnick moved: Keena seconded: The Minutes of December 13, 1989 be approved as written. The motion carried, and the Minutes stand approved as written. III. ELECTION OF OFFICERS Mr. Voth asked that the election of officers for the Authority be postponed to the next meeting on March 7th. Minnick moved: Byrne seconded: The election of officers for the Authority be delayed to March 7th. AYES: NAYS: Minnick, Schmidt, Voth, Bullock, Byrne, Keena None - 1 - ABSENT: Totton ABSTAIN: None The motion carried. IV. KIRCHNER-MOORE Jim Kreidle Mr. Wanush stated that the firm of Kirchner-Moore was engaged to analyze the Authority bond repayment schedule. Mr. Kreidle of Kirchner-Moore is present to make the initial report. Mr. Wanush asked that the Authority go into Ex- ecutive Session for this discussion. It was moved, seconded, and carried to go into Executive Session. * * * * * * * * * * Ms. Daugherty entered the meeting at 6:25 P.M. * * * * * * * * * * It was moved, seconded, and carried to come out of Executive Session. Members of the Authority expressed their appreciation to Mr. Kreidle, and he will report back to the Authority at their next meeting in March. Chairman Voth declared a short recess of the Authority. The meeting was called to order at 7:35 P.M.; all members present except for Mr. Tatton. V. LAW-SUIT UPDATE Marlin D. Opperman Mr. Opperman asked that the Authority be in Executive Session for his discussion. It was moved, seconded, and carried to go into Executive Session . * * * * * * * * * * It was moved, seconded, and carried to come out of Executive Session. Members of the Authority thanked Mr. Opperman for his attendance and update. VI. BOND WORK-OUT LEGAL COUNSEL Mike Johnson Davis, Graham & Stubbs Mr. Wanush recapped for the Authority the action which was taken at the meet- ing in December, 1989 wherein the Authority authorized Paul Benedetti, EURA Legal Counsel, and Assistant City Manager Linda Martin to review prospective Bond Work-out Counsel. Ms. Martin and Mr. Benedetti recommended that the firm of Davis, Graham & Stubbs be hired to serve as the legal counsel for the bond work-out project. Mr . Mike Johnson is representing this firm. Mr. Johnson has submitted a personal resume as well as a resume of his firm, and Mr. -2 - Wanush has met on several occasions with Mr. Johnson regarding the project. Mr. Wanush stated that he would recommend that Mr. Johnson be engaged to serve as the legal counsel for the Bond Work-out. Keena moved: Minnick seconded: The Urban Renewal Authority contract with Mike Johnson of Davis, Graham & Stubbs to serve as the legal counsel for the bond work-out. Mr. Bullock stated that he had previously expressed concern on the manner in which Mr. Johnson was selected, and also expressed concern on the hourly rate charged by Mr. Johnson. Mr. Bullock stated that the matter has been taken out of his hands, but he does want his concern noted. Ms. Keena gave a more detailed background on the selection of the bond work- out advisors and the bond work-out 1 egal counsel. The Authority delegated this responsibility to a Task Force which included staff and members of the Authority. Ms. Keena believes the delegation to have been appropriate, within the scope of the Authority's responsibility and satisfactorily completed by the Task Force. Mr. Bullock reiterated his concern on the rates . The vote was called on the motion: AYES: NAYS: ABSENT: ABSTAIN: Voth, Byrne, Keena, None Tot ton Bullock, Schmidt The motion carried. Minnick Mr. Bullock stated that he chose to abstain because he does not know what all was gone through in choosing the legal counsel. Mrs. Schmidt stated that she abstained because she doesn't feel that she has sufficient information, and is also concerned about the high legal fees. The motion carried. VII. CLEVETRUST Mr. Wanush stated that the acquisition of 21,267 square feet of land from the First Nati ona 1 Bank of Englewood for use as part of Englewood Parkway, was begun in 1984. The EURA was granted possession of the land, but a valuation was never determined. Negotiations have recently resumed and an offer of $500, 000 for the property has been accepted by both sides. Mr. Wanush re- viewed the negotiations, and pointed out that if the City Hall relocates within the next five years, CleveTrust will have the opportunity to purchase a parcel of land equal to that acquired by the EURA from the City for $500,000. The Authority is also responsible for payment of $9,000 for the appraisal done for the property owner. CleveTrust has agreed to pay $4,000 of this appraisal so the va 1 ue of the land purchase has been reduced to $496, 000. Funds have been transferred from the City to be added to those on deposit with the Courts to facilitate the transaction. Mr. Wanush stated that Mr. Opperman is trying to get signatures on the valuation agreements now. -3 - Ms. Schmidt asked if this property that was acquired was part of the Bank parking lot, and what portion of the City site would the Bank acquire. Mr. Wanush stated that it was part of the parking lot. The part of the City prop- erty to be acquired by the Bank would include a portion of the Courts if Hampden Place were straightened from east to west. Minnick moved: Byrne seconded: AYES: NAYS: ABSENT: ABSTAIN: Bullock, None Tot ton None Resolution #1, Series of 1990, A RESOLUTION OF THE ENGLE- WOOD URBAN RENEWAL AUTHORITY RATIFYING A SETTLEMENT PRICE FOR THE ACQUISITION OF A PARCEL OF PROPERTY OWNED BY THE FIRST NATIONAL BANK OF ENGLEWOOD, AND UNDER A LONG TERM LEASE TO CLEVETRUST REALTY INVESTORS, A MASSACHUSETTS UNIN- CORPORATED ASSOCIATION, be adopted and approved by the En- glewood Urban Renewal Authority. Byrne, Keena, Minnick, Schmidt, Voth The motion carried. VIII. REPURCHASE AGREEMENT TOPA Savings Bank Mr. Wanush stated that the Authority initially had $3.7 million on deposit with Bel Air Savings at 9.75%, which is the Reserve Fund. The Authority has drawn down on this account to make bond payments and there is now a balance of approximately $1.6 million on deposit. The Authority was approached last year with the request from Bel Air (now TOPA Savings) to terminate the repurchase agreement. At that time, it was determined there was no financial benefit to the Authority to terminate the agreement, and we so declined. The Authority has again been approached by Mr. Lipp of RCM Securities acting on behalf of TOPA Savings, regarding the possibility of terminating the agree- ment. TOPA has agreed to pay a premium to the Authority to compensate for interest that will be lost from having to invest the remaining funds at a rate lower than the 9.75%. Mr. Wanush stated that staff estimates the reserve fund will be depleted by June, 1991. Mr. Wanush stated that staff has done computations at various interest rates at which the funds may be invested. The staff estimates that the reserve fund would lose approximately $26,000 due to the lower investment interest rate. Ms. Keena asked what the rationale was for the offer of $45,000. Mr. Wanush stated that he didn't know, but that from the Authority's perspective, it was advantageous. Ms. Keena suggested that Mr. Wanush check with the banking com- munity to determine whether the premium amount is a reasonable amount in light of the benefits that TOPA might receive as a result of this transaction. Dis- cussion ensued. Mr. Bullock stated that he felt the Savings Bank is eager to terminate the agreement if they are wi 11 i ng to pay the premium of $45, 000. Ms. Byrne questioned the possibility of requesting a higher premium amount if the Bank is that eager to get out of the agreement. -4 - Ms. Schmidt asked who would handle the investing of the funds if the agreement is terminated. Mr. Wanush stated that the funds would be invested by the City Finance Department. Brief discussion ensued. Bullock moved: Minnick seconded: The Authority authorize Executive Director/Secretary Wanush to bargain with TOPA Savings Bank, the premium floor being $45,000 and no ceiling figure, to effect the buy-out and termination of the Repurchase Agreement. Discussion ensued. Ms. Byrne urged consideration of a higher premium floor amount. The vote was called: AYES: NAYS: Keena, Minnick, Schmidt, Voth, Bullock Byrne ABSENT: Tot ton ABSTAIN: None The motion carried. IX. FINANCIAL REPORT. Mr. Wanush reviewed the revenue comparisons prepared by Mr. Stitt. It appears that District #2 is down from the same period last year, with the closure of Buyer's Club accounting for this revenue shortfall. District #1 is up over the same period last year. Mr. Wanush stated that staff has regular contact with leasing agents at Trol- ley Square, but there is no activity to report. Li ncor leasing agents are busy contacting prospective tenants, but there is nothing to report to this date. Staff is working with Lincor on a potential childcare center. The Marketplace is virtually leased up. There is some activity on leasing the Buyer's Club space, but no immediate prospects. There is difficulty in find- ing a tenant capable of filling the entire space. The vacancy rates were briefly discussed, and Mr. Bullock noted that the vacancy rate in Englewood is very comparable to that in Denver. Ms. Keena stated that she had recently seen the new convention center, and that it will be very nice. Mr. Wanush noted that the American Planning Association (APA) National Con- ference is scheduled to be held in Denver in April, and that one of the mobile workshops will be a tour of The Plaza at Little Dry Creek and along the Creek. There was no further business to come before the Authority, and the meeting adjourned at 8:35 P. M. Recording Secretary -5 -