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HomeMy WebLinkAbout1990-07-11 EURA MINUTES( • • • I. ENGLEWOOD URBAN RENEWAL AUTHORITY July 11, 1990 CALL TO ORDER. D R A F T The regular meeting of the Englewood Urban Renewal Authority convened in Con- ference Room A of the Englewood City Hall, Chairman James Totton presiding. Members present: Byrne, Totton, Voth Wanush, Executive Director/Executive Secretary Members absent: Bullock, Minnick, Schmidt Also present: Harold J. Stitt, Assistant Marlin D. Opperman, Legal Counsel There was no quorum present at 5:30 P.M., and the meeting could not be formal- ly called to order. II. REVENUE REPORT Mr. Stitt presented and reviewed the revenue report. Property Tax revenues collected to date amount to $409,593.49, and Sales Tax revenues to-date are $456,893.09. Mr. Stitt pointed out that the sales tax base level in Area 1 has not yet been reached, so no revenues are coming to the Authority from that Area. Mr. Wanush stated that it is still too early to be able to determine whether the full bond payment can be made in December, 1990. III. PHYSICAL WHIMSICAL Mr. Wanush stated that the issue before the Authority is a proposed settlement on the Physical Whimsical Leasehold interest case. He was approached by Mar- shall Fogel and Leo Zuckerman, principals in the Physical Whimsical ownership, about a possible settlement. Initially, they indicated that they would settle for the amount of money that is on deposit with the Court. Mr. Wanush stated that there is currently approximately $340,000 on deposit, $250,00 of which came from JWM, owners of Trolley Square, $65,000 deposited initially by the EURA, and the remainder from accrued interest. Mr. Wanush stated that a re- view of the Assignment and Assumption Agreement giving JWM the development rights previously held by Brady, indicates that the EURA agreed to appeal the determination of the lower courts granting the leasehold value in this amount to Physical Whimsical. Mr. Wanush stated that he had contacted John Martin of JWM to discuss the proposal, and Mr. Martin indicated that they would be will- ing to amend the Agreement so that the EURA would not be obligated to appeal. Through Mr. Martin's attorney, Mr. Zuckerman said in a letter that JWM would agree to the change for $30,000. Mr. Wanush and Mr. Zuckerman agreed to split the $30,000 payment . -1 - Mrs. Schmidt entered the meeting, and the meeting was formally called to or- der. Previous discussion was briefly recapped. Mr. Wanush stated that Mr. Opperman was asked to attend the meeting to discuss with the Authority the pros and cons of settlement vs. appealing the lower court decision. Mr. Opperman stated that in his opinion, the Physical Whimsical principals are concerned that if the case is appealed, there is a good chance the award will be considerably reduced. Mr. Opperman stated that the notice of appeal record was to have been forwarded to the higher court today, but that he had been informed that "someone from the other side said that a settlement was in the works, and it would not be appealed." Mr. Opperman stated that the appeal is "our appeal", and no one from the opposing side should have interfered with the process of forwarding the documents to the higher court. Mr. Opperman stated that the EURA does have good grounds for appeal; however, if the Au- thority does win on appeal, this would mean it would be referred back to the lower court and the trial process would begin again. He stated that he under- stood with . the current financial condition of the Authority that this cost would be unacceptable. Mr. Opperman stated that on principle, he does not want to see a settlement out-of-court; practicality dictates that if a settle- ment can be agreed upon, the EURA should do so. Mr. Tatton asked if there was any written documentation from JWM indicating whether or not they would agree to the proposed settlement. Mr. Opperman stated that he has seen nothing in writing from JWM; all he has received is a letter from Mr. Zuckerman stating that JWM has so agreed. Mr. Opperman stated that he has not been involved in the negotiations for settlement up to this point in time. Discussion ensued. Mr. Opperman pointed out that one issue that may arise in the future could be a question on why the Authority did not pursue the appeal to recover at least a portion of the funds on deposit in light of the finan- cial difficulties in meeting the bond payments. Mr. Opperman stated that it must be documented that $250,000 of that amount on deposit was paid by JWM in accordance with the Assignment and Assumption agreement, and that EURA would have no claim to any of those funds. It must be made clear that the majority of the money came from a third party, and it was their determination whether or not to appeal the case. It was agreed that this was a good point to be emphasized should the issue arise. Brief discussion ensued. Mr. Totton asked for a motion. Voth moved: Schmidt seconded: The Authority authorize further negotiations to reach an out-of-court settlement with representatives of JWM and Physical Whimsical. Final settlement agreement, with writ- ten documentation from all parties, shall be considered by the Authority. AYES: NAYS: ABSENT: ABSTAIN: Tatton, Voth, Byrne, Schmidt None Bullock, Minni ck None The motion carried. - 2 - • • • • • • Mr. Opperman stated that he would 1 i ke to see the negotiations pursued as quickly as possible . Further discussion ensued . IV. APPROVAL OF MINUTES. June 6, 1990 Mr. Tatton stated that the Minutes of June 6, 1990 were to be considered for approval. Schmidt moved Byrne seconded: The Minutes of June 6, 1990 be approved as presented. AYES: NAYS: ABSENT: ABSTAIN: Voth, Byrne, Schmidt, Tatton None Bullock, Minnick None The motion carried. There being no further business to come before the Authority, the meeting was declared adjourned at 6:20 P.M. ~fduk tertriieG.Werty II Recording Secretary -3 -