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HomeMy WebLinkAbout1993-06-02 EURA MINUTESENGLEWOOD URBAN RENEW AL AUTHORITY JUNE 2, 1993 Members of the Englewood Urban Renewal Authority convened in Conference Room A for their regular meeting. Present: Absent: Mulhern, Sam Waggoner, Kells Waggoner (arrived late) Lee Merkel, Executive Director/Executive Secretary Byrne, Whatton, Smith Also present: Planning Administrator Harold J. Stitt City Manager Roger Fraser Former EURA member Melvin Minnick Inasmuch as a quorum was not present, the meeting could not be formally called to order. Chairman Mulhern asked that City Manager Fraser proceed with the discussion regarding Cin- derella City Mall. City Manager Fraser stated that Cinderella City Mall is being offered for sale by the ownership partnership of Equitable/KRA VCO; it is bei ng offered as a "sealed-bid sale". Cushman- Wakefield has been retained to actively market the property for the next three to four months, and it is the hope of the ownership to receive bids as a result of this intensive marketing pro- gram. Mr. Fraser discussed the City's efforts to also "market" the Mall, and to talk to pro- spective redevelopers about the site, and also discussed the City's concerns on the sealed-bid sale process pursued by the Mall ownership. Mr. Fraser stated that City staff has been meet- ing with Equitable personnel to attempt to develop a strategy to identify the potential owners and thus avoid going through the sealed-bid process. Mr. Fraser cited several firms that have expressed interest in the Cinderella City Mall --among them being Rouse Company, and Pacifica Holding. Kells Waggoner entered the meeting during Mr. Fraser's discussion. Mr. Fraser noted that Pacifica Holding has acquired the Phar-Mor Plaza site, and the interest previously held by CleveTrust in the Bank One property. They have expressed interest in be- coming involved in other projects in the Englewood community, also. Development activity in downtown Denver was briefly discussed. Mr. Fraser stated that the Mall itself is structurally sound, but the parking deck does need a considerable amount of work. The focus is still to effect a change in ownership. The City does want to get citizen input on concepts and ideas for the Mall. The possibility of City own- ership of the Mall was cited; Mr. Fraser pointed out that the City owns the land used for parking at the current time, but not the land under the building itself. The issue of "friendly condemnation" has faded into the background at this point in the dis- cussions. There are stores in the Mall who want to continue in operation, and any means to avoid the legal procedures inherent with condemnation will be to the advantage of all. Kells Waggoner also noted that the word "condemnation" means an unsafe building in the minds of many, not a means to acquire property. Mr. Mulhern asked if consideration had been given to acquisition of the Mall by a non-profit group, such as Nature Conservancy. The ownership of land by the City was discussed; Mr. Fraser stated that it is not against the law for the City to own a property and lease all or parts of it to retail or other uses. Mr. Fraser reported on recent discussions with one of the major anchors, who one year ago had indicated they wanted to move out of the Mall; but now their attitude has changed, and they want to remain. Further brief discussion ensued. Chairman Mulhern and members of the Authority expressed their appreciation to Mr. Fraser for his discussion. ********** Mr. Mulhern presented a plaque of appreciation to Melvin Minnick for his service as a mem- ber of Englewood Urban Renewal Authority from 1979 to 1993, and for service as a Vice Chairman for 1991/1992. Mr. Mulhern and members of the Authority commended Mr. Min- nick for his many years of service, and expressed their appreciation that someone would de- vote that many years to a project. Mr. Minnick thanked the members for their recognition; he stated that he found his service on the Authority to be an enjoyable experience, and noted that there is still a lot to do. ********** The Revenue Report was reviewed by Mr. Stitt. He pointed out that the sales tax revenues which have been posted so far this year are "erratic". Revenues this year to-date are $351,581.05 compared to $401,365.18 in 1992. The loss of some businesses which may have moved out of the Mall has no direct correlation to sales tax revenues from other segments of the City which are included in the tax increment district. Property tax revenues are up from the same period of last year, $405,030.56 compared to $324,947.13. Mr. Stitt stated he understood that negotiations are going on for new tenants in the former Best Buy building, and for the former Ponderosa Steak House site. 2 ********** Mr. Merkel led discussion on the request from Pacifica Holding Company to amend Schedule C in the Agreement for Disposition and Redevelopment (ADR) on the Phar-Mor Plaza. The Agreement calls for the construction of 77,000 square feet of retail space to be completed no later than May 17, 1993. Pacifica Holding Company has recently taken title to the Phar-Mor Plaza development, and is involved in negotiations with a second anchor, the construction of which will exceed the required 77,000 square feet cited in the ADR. Mr. Merkel recalled that this issue had been briefly discussed late last year, and it was the determination at that time that the full build-out would still be required by the Authority. Staff recommended that the Schedule of Completion on the ADR be amended to extend the requirement for full build out of the required square footage to no later than June 30, 1994. Discussion ensued. Mr. Stitt pointed out tha t the non-compliance with the construction re- quirement, even though not the fault of Pacifica Holding Company, places them as owner of the site in default of the ADR. Mr. Stitt further pointed out that it is in the best interest of the Authority to extend the agreement to get the additional square footage built to deter possible criticism from bond holders. Kells Waggoner inquired whether the Phar-Mor Store is closing. Mr. Merkel stated that this is not the understanding of staff; the Englewood store appears to be one of the strongest Phar- Mor stores in the Denver metro area, and that merchandise had been consolidated at this store from two others that have been closed. Mr. Mulhern stated that Pacifica Holding Company is a very reputable, aggressive company . Brief discussion ensued. Inasmuch as there was not a quorum present to act on this matter, the possibility of a telephone poll was discussed. Mr. Merkel stated that he would contact Legal Counsel Benedetti to de- termine the proper procedure for such a poll, or whether a special meeting would be required. In the event a telephone poll was approved, Mr. Mulhern, Sam Waggoner, and Kells Wag- goner all stated that they would vote to approve Resolution #1, 1993, and the amendment of Schedule C of the ADR to extend the time for construction completion to June 30, 1994. ********** Mi. Stitt led discussion on the request from Wells Fargo, the current lender on the Englewood Marketplace. A Certificate of Completion was signed by former Authority Chairman Bob Voth, and dated May 3, 1989; however, it was not notarized and was apparently not recorded. The Agreement for Disposition and Redevelopment (ADR) on this site does require a Certifi- cate of Completion to be signed and recorded, and gives the developer/owner a clear right to the property. Wells Fargo is trying to clear the title to the property, and has requested that the Authority re-issue a Certificate of Completion which is signed, notarized, and recorded; or to submit an affidavit with the original Certificate of Completion certifying to the originality and correctness of that Certificate. Mr. Stitt stated that the developer of the site, Trammell Crow, did complete all construction phases on the site, and this is a formality to assist in the clearing 3 of the title to the property. Once the Authority executes the new Certificate, or approves the Affidavit, it will be mailed by federal express to the Wells Fargo office. Mr. Stitt stated that he discussed the situation with Legal Counsel Benedetti, and while both procedures (affidavit or issuance of a new Certificate of Completion) are appropriate, Mr. Benedetti suggested issuing a new Certificate and approving a Resolution, which would create a "paper trail" for the Authority. Mr. Stitt stated that he has reviewed the file for the construction of Englewood Marketplace, and there is correspondence and evidence that the Certificate was issued, and signed by then Chairman Voth, but not recorded. A performance bond was required of the developer, and with each phase of construction, a Certificate of Partial Completion was issued, and the bond was reduced accordingly. Discussion ensued. Mr. Mulhern stated that his initial reaction is that the affidavit would be the more "comfortable" route to follow. Kells Waggoner pointed out that none of the current Authority members were members of the board at that time, and he also urged that the affi- davit procedure be followed. Staff was directed to prepare an affidavit certifying the Certificate of Completion signed by Bob Voth on May 3, 1989. ********** Mr. Merkel stated that a committee has been formed to promote the relocation of the Engle- wood Depot to the vacant site at South Broadway and Englewood Parkway. The intent of this committee is to remodel the Depot, and use it for offices for the Englewood Chamber of Commerce, and possibly the Englewood Historical Society. Mr. Merkel stated that members of the City staff have been involved in discussions of this proposal since last November, and while they support relocation of the Depot, it is questioned whether the southwest corner of that intersection is the proper site. The Englewood Downtown Development Authority was also approached about sharing office space in the remodeled Depot, but it was the determina- tion of the EDDA that they were not interested, and further that the subject site should be de- veloped for retail purposes. Mr. Merkel stated that there have been inquiries about possible development of the site for retail purposes, one of them a firm who recently moved out of Cinderella City and no longer wants to be part of a mall. Another is a firm specializing in suede and leather products. Mr. Merkel suggested that uses for the Depot might include a museum, or move it to the pro- posed RTD park and ride site; it is important that it be retained in and made a part of the com- munity. Mr. Merkel stated that if the Depot were relocated and developed as a museum, it should be located in a "pedestrian area". Discussion ensued. Kells Waggoner noted that at one time, there was consideration to relocating the depot to the lower level of Cinderella City near the former theater area. 4 Ownership of the southwest comer of the Broadway/Parkway intersection ensued. Mr. Stitt suggested that if the Authority has any proprietary interest in the site, and it was "given" to purposes other than retail, bondholders might not be understanding. Kells Waggoner stated that he recalled the property that was acquired by the EURA was for street purposes, and that the vacant land is not part of that acquisition. Staff was urged to check this out. Darrell Smith entered the meeting at 6:50 P. M. Further brief discussion on the relocation of the Depot ensued. ********** Mr. Stitt excused himself to attend a Tri-Cities Group meeting. ********** I. CALL TO ORDER. The meeting of the Englewood Urban Renewal Authority was formally called to order at 7:00 P.M. Members Present: Mulhern, Smith, K. Waggoner, S. Waggoner Merkel, Executive Director/Executive Secretary Members Absent: Byrne, Wharton II. APPROVAL OF MINUTES March 3, 1993 Chairman Mulhern asked for a motion to approve the Minutes of March 3, 1993. Kells Waggoner moved: Sam Waggoner seconded: The Minutes of March 3, 1993 be approved as written. AYES: NAYS: Smith, K. Waggoner, S. Waggoner, Mulhern None ABSENT: ABSTAIN: Byrne, Whatton None The motion carried. ill. PHAR-MOR PLAZA Pacifica Holding Company 5 Mr. Merkel reviewed the previous discussion of the Authority members on this issue for Mr. Smith. Mr. Mulhern asked the pleasure of the Authority. Kells Waggoner moved: Sam Waggoner seconded: The Englewood Urban Renewal Authority adopt Resolution #1, Series of 1993, A RESOLUTION OF THE ENGLEWOOD URBAN RENEW AL AUTHORITY AUTHORIZING AN AMENDMENT TO THE AGREEMENT FOR DISPOSITION AND REDEVELOPMENT BETWEEN THE AUTHORITY AND EXCHANGE PLACE LIMITED LIABil.,ITY COM- PANY. AYES: NAYS: ABSENT: ABSTAIN: K. Waggoner, S. Waggoner, Smith, Mulhern None Byrne, Whatton None The motion carried. ********** Other items on the agenda, and their disposition, were reviewed for Mr. Smith. Mr. Smith inquired on the progress of the community involvement project. Mr. Merkel stated that the neighborhood meetings --"Englewood, Something to Talk About" --have begun and appear to be going well. A second effort to gain citizen input is "Englewood By Design" which will be kicked off with a reception on June 10 at Woody's Club. Thirty-eight invita- tions were sent to various citizens and business people asking them to attend this initial meet- ing; from this group it is hoped to form an "initiating committee" which will then proceed to get information on where the wants to go and what it wants to become; from this will come the revised Comprehensive Plan. Mr. Smith commented on the "City Briefs" which is mailed to members of Boards and Com- missions, and suggested that an effort might also be made to distribute information at school functions, and noted that school functions are well attended by families of the students in- volved in plays, musical functions, etc. Brief discussion ensued. The meeting was formally adjourned at 7:10 P.M. Gertrude G. Welty, Recording Sec 6