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HomeMy WebLinkAbout1991-02-06 EURA MINUTES• • • ENGLEWOOD URBAN RENEWAL AUTHORITY February 6, 1991 I. CALL TO ORDER. D R A F T The regular meeting of the Englewood Urban Renewal Authority was ca 11 ed to order by Chairman James Tatton at 5:40 P.M. in the Community Room of the En - glewood City Hall. Members present: Byrne, Minnick, Schmidt, Tatton, Bullock Wanush, Executive Director/Executive Secretary Members absent: Daugherty, Alternate Also present: Paul C. Benedetti, Legal Counsel Alex Brown, Kirchner Moore Harold J. Stitt, Planner II. APPROVAL OF MINUTES January 9, 1991 Chairman Tatton stated the Minutes of January 9, 1991 were to be considered for approval . Bullock moved: Schmidt seconded: The Minutes of January 9, 1991 be approved as written. The motion carried. * * * * * * * * * * Mr. Bullock introduced Mr. Darrel Gease. Mr. Bullock stated that Mr. Gea se has recently interviewed to serve on a board or commission, and that he, Mr . Bullock, had been very impressed by Mr. Gease. Mr. Bullock stated that it i s possible Mr. Gease will be appointed to the Authority, and that he had invi\ed Mr. Gease to attend the meeting this evening. Mr. Gease is a teacher at St . Mary's Academy, and there may be a conflict with his teaching schedule and t he Authority meetings . * * * * * * * * * * III. ELECTION OF OFFICERS Mr. Totton stated that the Chair would entertain nominations for the Chairma n for 1991. Mr. Minnick nominated Mr . Totton as Chairman . Ms . Byrne seconded th e nomination . - 1 - Minnick moved: Byrne/Schmidt seconded: That nominations be closed, and James Totton be elec-• ted Chairman of the EURA. The motion carried. Mr. Tatton then called for nominations for Vice-Chairman. Ms. Schmidt nominated Mr. Minnick for Vice-Chairman. Mr. Bullock seconded the nomination. Schmidt moved: Byrne seconded: That nominations be closed, and Mr. Minnick be elected Vice-Chairman of the EURA. The motion carried. Mr. Totton asked for a motion designating the Executive Director/Executive Secretary of the Authority. Minnick moved: Schmidt seconded: Richard S. Wanush be designated Executive Director/ Executive Secretary of the EURA. The motion carried. IV. REVENUE REPORT Mr. Stitt stated that the sales tax revenues for January have not been posted • by the Finance Department to this date. The information that was submitted to the Authority in their packet is a recap of the 1990 revenues, both sales tax and property tax. In response to a query from Mr. Bullock, Mr. Stitt stated that the sales tax revenues posted in January are 17% ahead of revenues for the same month in 1990. Mr. Minnick asked about permit revenues for 1990. Mr. Wanush stated that per- mit revenues were up greatly in 1990 as a result of the July hail damage. V. UPDATE ON TRUSTEE LITIGATION Central Bank of Denver Mr. Benedetti reviewed the Hearing which was conducted on January 10 in Denver Probate Court on the request of Central Bank of Denver (Trustee) for instruc- t ions on payment of the $625,000 in principal to bondholders. The EURA had deposited with the Trustee sufficient funds to make both the principal and interest payments, due on December 1, 1990. The Court ruled that the Trustee must follow the Indenture, and make the principal payment, plus interest earned since December 1, to the bondholders. Mr. Benedetti stated that a num- ber of bondholders were present at the Hearing, and others had legal represen- tation in lieu of personal attendance. Mr. Benedetti stated that the Trustee used written and oral information given to the bondholders at the November 1, 1990 meeting on revenue shortfall and a projected default as a basis for their lawsuit, but the judge ruled that there is no default at the present time and the principal payment must be made. Mr. Benedetti stated that the Court did • leave the issue of attorneys fees for later argument. Several bondholders -2 - • • • argued that the Trustee should not use bond revenues to cover their legal ex- penses. Mr. Benedetti stated that it is clear the Trustee feels they have the right to use the bond revenues to cover legal fees, but will go through the Courts to reinforce that right. This will be contested by the Authority. Ms. Schmidt expressed her strong opinion that the Trustee should pay their own legal fees and those incurred by the Authority in this matter as well. Discussion ensued. Mr. Benedetti stressed the need for cooperation between the Trustee and the Authority because of the projected default and the need for all concerned to do what is best for the bondholders. Mr. Benedetti dis- cussed the ramifications of the default, and the possibility that Central Bank may not want to continue in the position of Trustee. Mr. Benedetti suggested that he and Mr. Wanush continue to work with Mr. Hoffman of Central Bank to determine what the intentions of the Bank may be. Mr. Totton commended Mr. Benedetti for his diligence in the litigation with the Trustee and his efforts to protect both the EURA and the interests of the bondholders. Mr. Benedetti expressed the opinion that the bondholders in attendance at the Hearing could see that the Authority is trying to stay on top of things, and is trying to protect the interests of the bondholders. Mr. Benedetti then discussed an organization called the "Municipal Bondholders Association'', and stated that he had recently been contacted by Mr. Walt Emery who requested a copy of the proposal to extend the term of a tax increment district beyond the present 25 years. Mr. Benedetti stated that he sent Mr. Emery this informa- tion, but also informed Mr. Emery that the Englewood City Council had declined to support this proposal. Mr. Emery 'indicated to Mr. Benedetti that his or- ganization may try to get this proposal enacted by the legislature. Mr. Benedetti commented that the proposed extension of tax increment district terms has been submitted to other urban renewal authorities. VI. EURA VS. ARAPAHOE COUNTY ASSESSOR Property Tax Increment Update Mr. Benedetti stated that Arapahoe County has not yet filed an answer to the suit filed against the County Assessor in November, 1990, but negotiations are on-going in efforts to reach a resolution. Mr. Benedetti stated that Mr. Na- gle, of the firm of Dietze, Davis & Porter, and Mr. Wanush met with the County Attorney and County Assessor recently. The County requested additional infor- mation from Mr. Wanush regarding demolitions in the tax increment district, which information has been supplied. We are trying to get the County to clarify the tax rolls back to 1986, and bring them current, and the Assessor is trying to get clearance from the County Attorney to do this. Mr. Wanush stated that the Assessor's office has agreed to recalculate the information from 1986 to the present time, and the County Attorney agreed to provide an opinion to the Assessor that this is proper. Mr. Benedetti pointed out that the experience of the Englewood Urban Renewal Authority with the method of figuring tax abatements by County Assessors is not unique. Other Authorities are experiencing similar problems, but not to the proportions that the EURA has. Mr. Benedetti stated that he has met with the Boulder Assessor regarding a similar situation. Efforts are being made to try to develop procedures to advise other bodies on the proper procedure. - 3 - Mr. Bullock asked if there was any way the Authority might recoup some of the losses as a result of the mi sapp l i cation of the abatement process. Mr . Benedetti stated that some taxing entities have the power to increase levies to make up for lost revenues; however, the Authority does not have that abili - ty. Mr. Bullock suggested annual or bi-annual audits of the tax rolls to make sure something like this does not occur again. Mr. Benedetti and Mr. Wanush discussed the need for the Authority to have input early on in the process ; it is too 1 ate to have input and effect a change when the eva 1 uat ions are received in the fall of each year. Discussion ensued. VII. BOND RESTRUCTURING OPTIONS Mr. Wanush asked that this discussion be in Executive Session. Minnick moved: Schmidt seconded: The EURA go into Executive Session. The motion carried; Mr. Bullock was temporarily out of the room when the vote was called. * * * * * * * * * * Byrne moved: Minnick seconded: The EURA come out of Executive Session. The motion carried. • Minnick moved: • Schmidt seconded: Executive Director Wanush be authorized to draft notice to bondholders stating the position of the Authority, said notice to contain alternatives which may be considered. This notice is to be reviewed by the Authority prior to AYES: NAYS: ABSENT: ABSTAIN: Bullock, None None None being sent to bondholders. Byrne, Minnick, Schmidt, Totton The motion carried. The next regular meeting of the Authority is scheduled for March 6th. Mr. Wanush and Mr. Bullock announced they had to attend the Council/Merchants Town Meeting at 7:00 P. M. There was no further business brought before the Authority. journed at 6:50 P.M. ·tertrude G. Welty j Recording Secretary - 4 - The meeting ad- •