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HomeMy WebLinkAbout1993-03-03 EURA MINUTESENGLEWOOD URBAN RENEWAL AUTHORITY MARCH 3, 1993 I. CALL TO ORDER. The regular/annual meeting of the Englewood Urban Renewal Authority was called to order by Chairman Tatton at 5:30 P. M. in Conference Room A of Englewood City Hall. Members present: Members absent: Also present: Byrne, Mulhern, Smith, K. Waggoner, S. Waggoner, Tatton Merkel, Executive Director/Executive Secretary Whatton (with previous notice) City Manager Roger Fraser II. INTRODUCTION OF NEW MEMBERS Mr. Tatton welcomed Mr. Steve Mulhern and Mr. Sam Waggoner, newly appointed members , to the Authority. He asked that everyone introduce themselves and give a bit of their back- ground. III. ECONOMIC DEVELOPMENT UPDATE City Manager Fraser addressed the Authority, and discussed the community outreach efforts that have been on-going for some time, and with the passage of Amendment #1 became even more critical. Mr. Fraser noted that Englewood as a community has an "esprit" that is unique in a metropolitan area, but it is still a community of 30,000 persons and requires an effort to keep the lines of communication open. The City must make the effort to go out to the people , not wait for those seeking information to come to the City. Mr. Fraser stated that within the very near future, the City will be distributing a newsletter directed to all employees, members of City Council, and members of all boards and commissions containing information that may not be readily available through regular media channels. A second approach to community outreach is a series of presentations that have been and are being made to neighborhood groups, such as Neighborhood Watch. Some of these meetings may well be scheduled in a private home , but will give people more of a one-on-one feeling to discuss issues of concern. Mr. Fraser asked for the participation of and ideas from all members of the Authority. Mr. Fraser noted that this year, the updating of the Comprehensive Plan will be a primary fo- cus of the Community Development Department and the Planning Commission; they are con- sidering using the "visioning" process, and will be going out to the community to determine the thoughts of the citizenry on "where we want to go" in the future for the City. The flow of information was further discussed. Ms. Byrne commented that her neighborhood e has changed; there are now more renters, and people are not as well acquainted as they once were, therefore information is not as freely exchanged. Mr. Smith agreed that the neighborhoods are changing; more young families are moving in; he commented on the need to retain a mix of younger families as well as the older population in our neighborhoods. Mr. Fraser then discussed the latest activities regarding Cinderella City. He recalled that his last meeting with the Authority was prior to the trip of some of the City administration to At- lanta to meet with Equitable personnel. At that time, the possibility of friendly condemnation was posed to Equitable as a "trump card"; it was clear that both KRAVCO and Equitable want to get out of the Cinderella City ownership and were not interested in investing anything further to improve the Mall. The idea of "condemnation" was not alarming to the Mall owners , and the indication was they would work with the City to find new ownership. Mr. Mulhern inquired whether the ownership is a 50/50 deal. Mr. Fraser stated that i t is not ; in fact, KRA VCO has 25 % interest, but is the managing partner, while Equitable has a 75 % interest in the ownership. The relationship between KRA VCO and Equitable has not been amicable for sometime, and Cinderella City Mall has suffered because of this contention be- tween the owners. Mr. Fraser noted that it is his understanding that KRA VCO has been "removed" from managing Cinderella City recently. The City contracted with MAS Marketing out of Chicago to do a survey on the Mall. This study included a telephone survey of 1, 000 women between the ages of 18 -65 on their shop- ping habits ; this was conducted with a "primary" survey area, and two peripheral areas being targeted. Results of the survey indicated that people no longer shop Cinderella City because of poor merchandising and because they cannot find what they want. There were no complaints about the location, access, etc. The MAS study does indicate there is continued viability for retail at Cinderella City ; however the approach to and type of merchandising may change. Mr. Fraser stated that staff is meeting with prospective developers/redevelopers of retail busi- nesses , but haven't worked out how an ownership transaction will occur. Mr. Fraser stated that staff is attempting to obtain some vital information from Equitable, but it has not been re- ceived. Mr. Fraser indicated that the staff hopes to have a basic agreement on a change of ownership worked out by Fall of this year. Mr. Fraser discussed the valuation figures that have been cited; some estimates indicate the structure itself has no value, but that the land is worth $15,000,000. Estimates to demolish and rebuild the parking deck are also cited in the $12,000,000 to $15,000,000 range. Discussion on past dealings with KRA VCO, both from the City's perspective and from the EURA' s during the redevelopment, ensued. Mr. Totton reported a comment from the man- ager of Joslins regarding deterioration of the Mall, and the fact that KRA VCO did not care. Mr. Fraser stated that Joslins isn't sure about their "future" with the Mall, and questioned that we could secure commitments from any of the present anchors even if new ownership was in place. 2 ' e Mr. Smith inquired about the expected loss of revenue to the City from Cinderella City, and an estimated time before we see a turn around. Mr. Fraser stated that revenues from Cinder- ella City in 1991 were $2, 100,000 to $2,200 ,000; revenues in 1992 were closer to $2,000,000. Projections for 1993 are at $1,900,000 but this may be optimistic . Ownership of segments of the Mall were discussed. Mr. Fraser stated that it appears the May Company does not "own" their building , but has a lease agreement. Joslins, on the other hand, does own their building. Kells Waggoner noted there are private ownerships on the pe- riphery of the Center along U.S. 285 , also. Ms. Byrne questioned the possibility of redeveloping only a portion of the Mall. Mr. Fraser stated that this is an alternative. Staff recently met with a developer from the east coast who toured the Mall, and this developer commented that the Mall structure itself was sound , but that the parking deck does need improvement. The developer further commented that to con- struct a Mall of the magnitude of Cinderella City on today's market would require in excess of $200,000 ,000. Mr. Totton inquired whether the study addressed the need for a hotel. Mr. Fraser stated that MAS study was not focused on this ; he further stated that comments from other people who have discussed the Mall are that a hotel is conspicuous in its absence. Mr. Totton commented that Mr. Jim Chambers, who worked in Economic Development for the City for a year, was try ing to attract interest from hotel chains, and reported that hotels would want a high visibility location --such as Santa Fe and U.S. 285 . Mr. Totton stated that in his opinion , the May Company structure at the Mall is a good location for a hotel, and i t wouldn't be too d ifficult to convert to hotel purposes. Mr. Smith stated that whatever form the redevelopment takes , it must be something that at- tracts people, that is different , and appealing. Mr. Smith discussed a new "civic center" that would encompass city offices, library, etc. Mr. Merkel stated that one of the concepts that has been considered is a "City Center" with amenities to tie the areas from Swedish Medical Cen- ter to Santa Fe together. Mr. Smith stressed the need for the City to be prepared to help "sell" whatever development occurs. Mr. Fraser stated that the three primary alternatives to be considered are: 1) Work with the existing facility and remodel it over time. 2) Continue to have three or four anchors, but to concentrate the anchors in one area, and to eliminate the east wing of the Center. 3) Scrape the site clean . Mr. Fraser further discussed the possible change in mix of tenants and merchandising ap- proaches. The "big box" type of store is something that might be considered. Mr. Fraser also discussed the market share of King Soopers; Englewood's store currently is approximately 60 ,000 square feet, and the prototype is now 100,000 square feet or above. Were King Soopers to consider relocation to the western segment of the Cinderella City site, this would 3 , provide greatly improved visibility from both U.S. 285 and South Santa Fe Drive. The e possibility of extending the Little Dry Creek design theme west to Santa Fe Drive , and developing a collection of good restaurants was also discussed. Ms. Byrne inquired about the transit station which has been previously considered on the western end of the Cinderella City site. Mr. Fraser stated that discussions are ongoing with RTD , but pointed out that the improvements on Santa Fe Drive do contain a High Occupancy Vehicle (HOV) corridor. Mr. Fraser cited problems with locating a transit station in close proximity to a mall, citing increased crime problems , gang activity, etc. There was further discussion on the "civic center" concept, and the need to "tie everything to- gether." Kells Waggoner commented that the Galleria in Houston has everything tied together , and that it is attractive and workable . Mr. Smith asked if the City was going to put money into the project with the developer, or "sit back". Mr. Fraser stated that the objective is to find a new owner for the Mall , and that the preferred scenario is not to put actual dollars into the project , but to provide whatever other assistance we can. Mr. Mulhern i nquired whether the study addressed Cinderella City in relation to other compet- ing redeveloping Malls, such as University Hills and Bear Valley. Mr. Fraser noted that peo- ple will drive to any Mall if the merchandising mix and selection is right. Mr. Fraser d is- cussed his concept of a "retail campus", with open space to tie into the Little Dry Creek im- provements, but we need a large attractor --on the order of a large King Soopers --to encour- age people to start shopping and continue shopping such a development. Mr. Tatton commented that any developer who undertakes this project will be very retail ori- ented. He further commented that in his opinion the City should not approach the redevelop- ment with the idea of "controlling" the architectural aspects of the redevelopment. He cited experiences of the Urban Renewal Authority in dealing with developers, in that "this is what is proposed , take it or leave it." Mr. Fraser stated that he preferred the use of the word "influence" versus "control". Mr. Smith stated that the City must still determine if the design is "right for the community", and that it has become obvious that the design of Trolley Square was not "right for the community". He stated that the City must be able to make modifica- tions to a proposal to assure that it fits into the character of the City, and that the City is liable for failures in this regard; the City must be able to compromise. Ms. Byrne stated that she has always wanted an ice skating rink in the City. Sam Waggoner suggested that consideration be given to a combination convenience store/entertainment center development. He suggested that water world --indoor and outdoor facilities as well as the ice skating rink --could be developed in addition to the retail development located as the "mid- point". A developer could also consider construction of go-cart tracks, and other family-ori- ented amusement uses. Sam Waggoner said that in his opinion, this would be unique and could be "sold" to the public. Mr. Fraser stated that the City has received calls from people 4 e who were looking to develop something o ther than retail on the site, and that one company is considering only two locations in the Denver metro area --one of which is Cinderella City. Kells Waggoner stated that there will have to be something to draw people into any area. Mr. Smith suggested that a good year-round farmer's market would be a good "people draw", and that the Santa Fe/U.S. 285 location would be ideal --easy access, good visibility. Sam Waggoner excused himself from the meeting to attend a previous commitment. Mr. Mulhern asked if the site were to be cleared and redeveloped. would Equitable be inter- ested in remaining involved. Mr. Fraser stated that it is his impression Equitable would not be interested. They want to get rid of this property. Mr. Smith commented that condemnation seems to be the better tax approach from an owner's viewpoint, and may be quicker than try- ing to negotiate their way out. Mr. Fraser stated that he just wanted to bring the Authority up-to-date, and give members an opportunity to ask questions regarding the Marketing study. Mr. Tatton thanked Mr. Fraser for his attendance. III. APPROVAL OF MINUTES December 2, 1992 Chairman Tatton stated the Minutes of December 2, 1992 were to be considered for approval. K. Waggoner moved: Smith seconded: The Minutes of December 2, 1992 be approved as written. The motion was declared carried on a voice vote. IV. ELECTION OF OFFICERS Chairman Vice-Chairman Executive Director/Executive Secretary Mr. Totton stated that he has submitted his resignation from the Authority to the City Council, though they have not yet accepted the resignation. He stated that he would entertain nomina- tions for the position of Chairman. K. Waggoner moved: Byrne seconded: That Steve Mulhern be nominated as Chairman of the Englewood Urban Renewal Authority. There were no further nominations; upon the call of the role: 5 AYES: NAYS: ABSENT: ABSTAIN: Smith, K. Waggoner, Byrne, Tatton, Mulhern None Whatton, S. Waggoner None Mr. Mulhern was declared Chairman of the Authority. Mr. Tatton called for nominations for Vice-Chairman. Byrne moved: Mulhern seconded: Darrel Smith be nominated as Vice-Chairman of the Authority. There were no further nominations. Upon call of the role: AYES: NAYS: ABSENT: ABSTAIN: Byrne, Mulhern, Smith, K. Waggoner, Tatton None S. Waggoner, Wharton None Mr. Smith was elected Vice-Chairman of the Authority. Mr. Tatton stated that he would turn the Chair over to Mr. Mulhern. Mr. Mulhern asked that Mr. Tatton please continue as Chairman for the duration of this meeting. Mr. Tatton asked for a motion to designate Mr. Merkel as the Executive Director/Executive Secretary for 1993. K. Waggoner moved: Byrne seconded: Mr. Lee Merkel be designated as the Executive Director/Executive Sec- retary of the EURA. AYES: NAYS: ABSENT: ABSTAIN : Smith, Byrne, Mulhern, K. Waggoner, Tatton None S. Waggoner, Whatton None The motion carried. V . 1993 BUDGET Mr. Merkel presented a proposed 1993 Budget for the consideration of the Authority. No funds have been approved by the City Council, and in 1992, the Authority operated on a "negative balance", with funds transferred in at the end of the year to cover expenses. It is anticipated that the City will take this same approach in 1993; however, the State does require that the Authority have an "approved budget" on file with them. 6 e K. Waggoner moved: Byrne seconded: The Urban Renewal Authority approve the 1993 Budget as presented. AYES: NAYS: ABSENT: ABSTAIN: Byrne, Mulhern, Smith, K. Waggoner, Totton None S. Waggoner, Whatton None The motion carried. VI. REVENUE REPORT Mr. Merkel presented the latest Revenue Report dated February 24, 1993. Year-to-date sales tax revenues are $169,740.31 compared to $192 ,820.07 in 1992; property tax revenues year- to-date are $24 ,402.64 compared to $25,872.85 in 1992. Mr. Waggoner inquired regarding revenues from Office Depot; does this store serve as ware- housing headquarters for the Denver area, and if so , are any revenues realized from the ware- housing operation, or only the direct over-the-counter sales. Mr. Merkel stated that he could not answer this question, but would find out and report back. The Authority received the Revenue Report for the record. VIII. ACOMA PARKING LOT LEASE Mr. Totton stated that this item pertains to property in the 3400 block of South Acoma Street, but is leased to the City of Englewood. The City has the option to renew on a year-to-year basis. Ms. Byrne noted the duplication of a phrase in the lead paragraph, and that the signature line should now be changed to reflect Mr. Mulhern as Chairman. Byrne moved: K. Waggoner seconded: The Acoma Street Lease between the Englewood Urban Renewal Authority and the City of Englewood be approved for renewal and transmitted to City Council for signature. AYES: NAYS: ABSENT: ABSTAIN: Byrne, K. Waggoner, Smith, Totton, Mulhern None S. Waggoner, Whatton None The motion carried. 7 IX. LEGISLATIVE UPDATE Mr. Merkel stated that legislation to extend the length of time for bond issue pay-back is once again before the Legislature. The length of time under current State Statutes is 25 years from date of issue; the proposal is to lengthen this time to 30 or 35 years. Paul C. Benedetti , who serves as legal counsel to the EURA, has been involved in this issue for over a year, and has co-authored the proposed legislation. Mr. Benedetti called earlier on this date to report that he has been asked to testify before the legislature regarding this issue, and he had told them he would do so unless "one of his clients" (Englewood) objected. Mr. Merkel stated that he in- formed Mr. Benedetti that the City of Englewood does not support or oppose this legislation. Discussion ensued . Kells Waggoner commented that there is trading of the EURA bonds, even though they are in default. Mr. Waggoner pointed out that if the legislation is enacted, it's not mandatory for the City Council to amend the Plan to extend the length of time. Mr. Waggoner further pointed out that this could be something useful as a bargaining point were bond financing needed for the Cinderella City Mall. Mr. Merkel stated that in light of Amendment #1, it is doubtful that the citizenry would vote to extend the length of time for funds to be expended in repayment of a "debt". Mr. Tatton recalled discussions and statements that bondholders made at an open meeting hosted by the Authority over two years ago. Bond purchasers did not ask for copies of the Prospectus, and did not acknowledge the "red flags" on the bond issue . Brief discussion en- sued . X. PUBLIC FORUM. No one was present to address the Authority. XI. DIRECTOR'S CHOICE. Mr. Merkel did not bring up anything further for discussion . XII. COMMISSIONER'S CHOICE Mr. Totton expressed his appreciation for the opportunity to serve on the EURA , and stated that he had no regrets for anything the Authority undertook and accomplished. He stated that it was unfortunate the financial projections were not more accurate, but stated that there had been a great deal of optimism regarding the financial health of the country in the early '80's. Mr. Tatton stated that he has been involved in the developer business for 55 years, and has seen many ups and downs in the financial world. Mr. Totton stated that he has a number of projects he is interested in, among them the Englewood Historical Society, and the State Historical Society wants to obtain some information and pictures that he has. 8 There was nothing further brought before the Authority, and the meeting was declared ad- journed at 7:30 P. M. Gertrude G. Welty, Recording Secre 9 ORDINANCE NO. /2_ SERIES OF 1993 BY AUTHORITY COUNCIL BILL NO. 16 INTRODUCED BY COUNCIL MEMBER HATHAWAY AN 'ORDINANCE APPROVING A LEASE FOR REAL PROPERTY IN THE 3400 BLOCK OF SOUTH ACOMA (PARKJNG LOT) BETWEEN THE ENGLEWOOD URBAN RENEWAL AUTHORITY AND THE CITY OF ENGLEWOOD, COLORADO. WHEREAS, the City leased the property on the east side of the 3400 Block of South Acoma Street for three-years at the rental rate of$1, per year by the passage of Ordinance No. 41, Series of 1988 ; and WHEREAS, the City of Englewood developed a parking lot on this parcel as an interim use until an acceptable development proposal was forthcoming; and WHEREAS, the City of Englewood wishes to renew the lease of said property from Englewood Urban Renewal Authority; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ENGLEWOOD, COLORADO, AS FOLLOWS : Section 1. Approval to renew the lease of real property between the Englewood Urban Renewal Authority and the City of Englewood, Colorado, is hereby approved . Said lease generally provides for the following: 1. The leased property is located on the East side of the 3400 Block of South Acoma Street, City of Englewood, County of Arapahoe, State of Colorado . 2. The term of the Lease is for a three (3) years and renewable for successive one year terms upon agreemen~between the EURA and the City of Englewood. The rent for the term hereof shall be Thirty Dollars ($30.00) thereafter the rent for each successive year is Ten Dollars ($10.00) and is due prior to each year the lease is renewed. 3. The leased premises are for municipal uses, including parking. 4. The Lease is cancellable for redevelopment purposes upon mutual agreement of the City of Englewood and the Englewood Urban Renewal Authority. Introduced, read in full, and passed on first reading on the 5th day of April, 1993 . Published as a Bill for an Ordinance on the 8th day of April, 1993. Read by title and passed on final reading on the 19th day of April, 1992 . 10 c Published by title as Ordinance No. f!l. Series of 1992, on the 22nd day of April, 1992. ~1:_£-1. '~~ -·-_ _:_, ClyCie E. Wi~ ATTEST: a~~,~~~ ------------~~-------Patricia H. Crow, City Clerk I, Patricia H. Crow, City Clerk of the City of Englewood, Colorado, hereby certify that the above and foregoing is a t77e copy of the Ordinance passed on final reading and published by title as Ordinance No. , Series of 1992. Patricia H . Crow - 2 - q ORDINANCE NO. fJ SERIES OF 1993 BY AUTHORITY A BILL FOR COUNCIL BILL NO. 16 INTROD~ COUNCIL MEMBER I)' AN ORDINANCE APPROVING A LEASE FOR REAL PROPERTY IN THE 3400 BLOCK OF SOUTH ACOMA (PARKING LOT) BETWEEN THE ENGLEWOOD URBAN RENEWAL AUTHORITY AND THE CITY OF ENGLEWOOD, COLORADO. WHEREAS, the City leased the property on the east side of the 3400 Block of South Acoma Street for three-years at the rental rate of $1, per year by the passage of Ordinance No. 41, Series of 1988; and WHEREAS, the City of Englewood developed a parking lot on this parcel as an interim use until an acceptable development proposal was forthcoming; and WHEREAS, the City of Englewood wishes to renew the lease of said property from Englewood Urban Renewal Authority; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ENGLEWOOD, COLORADO, AS FOLLOWS : Section 1. Approval to renew the lease ofreal property between the Englewood Urban Renewal Authority and the City of Englewood, Colorado, is hereby approved . Said lease generally provides for the following : 1. The leased property is located on the East side of the 3400 Block of South Acoma Street, City of Englewood, County of Arap a hoe, State of Colorado. 2. The term of the Lease is for a three (3) years and renewable for successive one year terms upon agreement between the EURA and the City of Englewood. The rent for the term hereof shall be Thirty Dollars ($30.00) thereafter the rent for each successive year is Ten Dollars ($10 .00) and is due prior to each year the lease is renewed . 3. The leased premises are for municipal uses, including parking. 4. The Lease is cancellable for redevelopment purposes upon mutual agreement of the City of Englewood and the Englewood Urban Renewal Authority. Introduced, read in full, and passed on first reading on the 5th day of April, 1993. Published as a Bill for an Ordinance on the 8th day of April, 1993. ATTEST : (}az;:r&..f~ Patricia H . Crow, City Clerk I, Patricia H. Crow, City Clerk of the City of Englewood, Colorado, hereby certify that the above and foregoing is a true copy of a Bill for an Ordinance, introduced, read in full, and passed on first reading on the 5th day of April , 1993. a~~v~-~ Patricia H. Crow -2- LEASE OF REAL PROPERTY THIS LEASE is made and executed on the day of , 199_ by and between the ENGLEWOOD URBAN RENEWAL AUTHORITY, a body corporate and politic, organized and existing under the laws of the State of Colorado, having its principal office at 3400 South Elati Street, Englewood, Colorado 80110, herein referred to as Lessor, and the CITY OF ENGLEWOOD, COLORADO, a municipal corporation organized and existing under the laws of the State of Colorado, City Hall, 3400 South Elati Street, Englewood, Colorado, County of Arapahoe, State of Colorado, herein referred to as Lessee. SECTION ONE DEMISE, DESCRIPTION, AND USE OF PREMISES Lessor leases to Lessee and Lessee leases from Lessor, those premises situate in the County of Arapahoe, State of Colorado, and more particularly described as: the South Half of Lot 2 and Lots 3 through 11, Block 2, City Gardens Subdivision, and Lots 1 through 14, Nielsen's Subdivision, City of Englewood Lessee may construct, at its own expense, any improvements it so desires on the property. The premises may be used for any purpose which furthers the goals of the Downtown Redevelopment Plan including but not limited to parking. SECTION TWO TERM The term of this Lease shall be for three (3) years , and shall be renewable for successive one year terms upon agreement of the Lessee and Lessor. SECTION THREE RENT The rent for the term hereof shall be Thirty Dollars ($30.00) which Lessee shall pay to Lessor at the time of delivery of the Lease. The rent for each successive year is Ten Dollars ($10.00) and is due prior to each year the lease is renewed. SECTION FOUR WARRANTIES OF TITLE AND QUIET POSSESSION Lessor covenants that Lessor is seized of the demised premises in fee simple and has full right to make this Lease and that Lessee shall have quiet and peaceable possession of the demised premises during the term hereof. · SECTION FIVE USES PROHIBITED No use shall be made or permitted to be made of the demised premises, or acts done, which will cause a cancellation of any insurance policy covering the premises, or any part thereof, nor shall Lessee sell, or permit to be kept, used , or sold, in or about the demised premises, any article which may be prohibited by the standard form of fire insurance policies. Lessee shall, at its sole cost, comply with all requirements pertaining to the demised premises of any insurance organization or company necessary for the maintenance of insurance, as herein provided, covering any building and appurtenances at any time located on the demised premises. SECTION SIX WASTE AND NUISANCE PROHIBITED During the term of this Lease, Lessee shall comply with all applicable laws affecting the demised premises, the breach of which might result in any penalty on Lessor or forfeiture of Lessor 's title to the demised premises. Lessee shall not commit, or suffer to be committed, any waste on the demised premises or any nuisance . SECTION SEVEN LESSOR'S RIGHT OF ENTRY Lessee shall permit Lessor and the agents and employees of Lessor to enter into and upon the demised premises at all reasonable times for the purpose of inspecting the same, or for the purpose of posting notices of non responsibility for alterations, additions, or repairs, without any rebate of rent and without any liability to Lessee for any loss of occupation or quiet enjoyment of the premises thereby occasioned. SECTION EIGHT LESSEE SHALL NOT ENCUMBER Lessee shall not encumber or cause any act to encumber the property with any mortgage, deed of trust, lien or other instrument. SECTION NINE SUBLETTING AND ASSIGNMENT Lessee shall not sublet the premises in whole or in part without Lessor's consent. Lessee shall not assign or transfer this Lease, or any interest herein, without the prior written consent of Lessor, and a consent to an assignment shall not be deemed to be a consent to any subsequent assignment. Any such assignment without such consent shall be void and shall, at the option of Lessor, terminate this Lease. Neither this Lease nor the leasehold estate of Lessee, nor any interest of Lessee hereunder in the demised premises or any buildings or improvements thereon shall be subject to involuntary assignment, transfer, or sale, or to assignment, transfer, or sale by operation of law in any manner whatsoever, and any such attempted involuntary assignment, transfer, or sale shall be void and of no effect and shall, at the option of Lessor, terminate this Lease. -2- • SECTION TEN NOTICES All notices, demands, or other writings in this Lease provided to be given or made or sent, or which may be given or made or sent, by either party hereto to the other, shall be deem ed to have been fully given or made or sent when made in writing and deposited in the U nited States mail, certified, postage prepaid, and addressed as follows: LESSOR: Englewood Urban Renewal Authority 3400 South Elati Street Englewood, Colorado 80110 LESSEE : City Manager City of Englewood 3400 South Elati Street Englewood , Colorado 80110 The address to which any notice, demand, or other writing may be given or made or sent to an y party as above provided may be changed by written notice given by such party as above provided. SECTION ELEVEN TAXES AND ASSESSMENTS As additional rental hereunder, Lessee shall pay and discharge as they become due, promptly and before delinquency, all taxes, assessments, rates, charges, license fees, municipal liens, levies, excises, or imposts, whether general or special, or ordinary or extraordinary, of every name, nature and kind whatsoever, including all governmental charges of whatsoever name, nature, or kind, which may be levied, assessed, charged, or imposed , or which may become a lien or charge on or against the land hereby demised, or an y part thereof, the leasehold of Lessee herein, the premises described herein, any building or buildings, or any other improvements now or hereafter thereon, or on or again st Lessee 's estate hereby created which may be a subject of taxation, or on or against Lessor by reason of its ownership of the fee · underlying this lease, during the entire term hereof, excepting only those taxes hereinafter specifically excepted. SECTION TWELVE CONSTRUCTION New Improyements. Lessee may construct those improvements necessary to carry out the uses hereby authorized. . SECTION THIRTEEN REPAIRS AND DESTRUCTION OF IMPROVEMENTS a) Maintenance Of Improvements. Lessee shall, throughout the term of this Lease, at its own cost, and without any expense to Lessor, keep and maintain the premises, including all parking improvements of every kind which may be a part thereof, and all appurtenances thereto, including sidewalks adjacent thereto, in good, -3 - sanitary, and neat order, condition and repair, and, except as specifically provided herein, restore and rehabilitate any improvements of any kind which may be destroyed or damaged by fire, casualty or any other cause whatsoever. Lessee shall keep all the sidewalks on and around the premises free and clear of ice and snow . Lessor shall not be obligated to make any repairs, replacements, or renewals of any kind, nature, or description, whatsoever to the demised premises or improvements thereon. Lessee shall also comply with and abide by all federal, state, county, municipal, and other governmental statutes, ordinances, laws, and regulations affecting the demised premises, the improvements thereon or any activity or condition on or in such premises~ b) Damae-e To And Destruction Of Improyements. The damage, destruction, or partial destruction of any building or other improvement which is a part of the premises shall not release Lessee from any obligation hereunder, except as hereinafter expressly provided, and in case of damage to or destruction of any such building or improvement, Lessee shall, at its own expense, promptly repair and restore the same to a condition as good or better than that which existed prior to such damage or destruction . Without limiting such obligations of Lessee it is agreed that the proceeds of any insurance covering such damage or destruction shall be made available to Lessee for such repair or replacement. SECTION FOURTEEN UTILITIES Le s see shall fully and promptly pay for all water, gas, heat, light, power, telephone service, and other public utilities of every kind furnished to the premises throughout the term hereof, and all other costs and expenses of every kind whatsoever of or in connection with the use, operation, and maintenance of the premises and all activities conducted thereon, and Lessor shall have no responsibility of any kind for any thereof. SECTION FIFTEEN LIENS Lessee shall keep all of the premises and every part thereof and all buildings and other improvements at any time located thereon free and clear of any and all mechanics' materialmen 's, and other liens for or arising out of or in connection with work or labor done, services performed, or materials or appliances used or furnished for or in connection with any operations of Lessee, any alteration, improvement, or repairs or additions which Lessee may make or permit or cause to be made, or any work or construction, by, for, or permitted by Lessee on or about the premises, or any obligations of any kind incurred by Lessee, and at all times promptly and fully to pay and discharge any and all claims on which any such lien may or could be based, and to indemnify Lessor and all of the premises and all buildings and improvements thereon against all such liens and claims of liens and suits or other proceedings pertaining thereto. SECTION SIXTEEN INDEMNIFICATION OF LESSOR Lessor shall not be liable for any loss, injury, death, or damage to persons or property which at any time may be suffered or sustained by Lessee or by any person whomsoever may at any time by using or occupying or visiting the demised premises or be in, on, or about the same, whether such loss, injury, death, or damage shall be caused by or in any way result from or arise out of any act, omission, or negligence of Lessee or of any occupant, any subtenant, visitor, or use of any portion of the premises, or shall result from -4- • or be caused by any other matter or thing, whether of the same kind as or of a different kind t han the matters or things set forth above, and Lessee shall indemnify Lessor against all claim s, liability, loss or damage whatsoever on account of any such loss, injury, death, or damage. Lessee hereby waives all claims against Lessor for damages to improvements that are now on or hereafter placed or built on the premises and to the property of Lessee in, on , ot about the premises, and for injuries to persons or property in or about the premises, from any cause arising at any time. SECTION SEVENTEEN DELIVERY OF PREMISES Lessee shall pay the rent and all other sums required to be paid by Lessee hereunder in the amounts, at the times, and in the manner herein provided, and shall keep and perform all the terms and conditions hereof on its part to be kept and performed, and, at the expiration or sooner termination of this Lease, peaceably and quietly quit and surrender to Lesso r the premises in good order and condition subject to the other provisions of this Lease . In the event of the nonperformance by Lessee of any of the covenants of Lessee und er taken herein, this Lease may be terminated as herein provided. SECTION EIGHTEEN REMEDIES CUMULATIVE All remedies hereinbefore and hereafter conferred on Lessor shall be deemed cumulative and no one exclusive of the other or of any other remedy conferred by law. SECTION NINETEEN INSURA..;.~CE Lessee shall maintain in effect throughout the term of this Lease personal injury liability insurance covering the premises and its appurtenances and property damage liability insurance in an amount not less than the liability limit established by state statutes for local governmental bodies. Such insurance shall specifically insure Lessee again st all liability assumed by it hereunder, as well as liability imposed by law, and shall insure both Lessor and Lessee but shall be so endorsed as to create the same liability on the part of the insurer as though separate policies had been written for Lessor and Les see. SECTION TWENTY EFFECT OF EMINENT DOMAIN In the event the entire demised premises shall be appropriated or taken under the power of eminent domain by any public or quasi-public authority, this Lease shall terminate and expire as of the date of such taking, and both Lessor and Lessee shall thereupon be released from any liability thereafter accruing hereunder. SECTION TWENTY-ONE SURRENDER OF LEASE The voluntary or other surrender of the Lease by Lessee, or a mutual cancellation hereof, shall not work a merger and shall, at the option of Lessor, terminate all or any existing subleases or subtenancies, or may, at the option of Lessor, operate as an assignment to it or any or all such subleases or subtenancies. -5- SECTION TWENTY-TWO DISPOSITION OF IMPROVEMENTS OR TERMINATION OF LEASE On termination of this Lease, Lessor shall become the owner of any improvements on the demised premises. SECTION TWENTY-THREE WAIVER The waiver by Lessor or the failure of Lessor to take action with respect to any breach of any term, covenant, or condition herein contained, shall not be deemed to be a waiver of such term, covenant, or condition, or subsequent breach of the same, or any other term, covenant, or condition thereon contained. The subsequent acceptance of rent hereunder by Lessor snall not be deemed to be a waiver of any preceding breach by Lessee of any term, covenant, or condition of this Lease, other than the failure of Lessee to pay the particular rental so accepted, regardless of Lessor's knowledge of such preceding breach at the time of acceptance of such rent. SECTION TWENTY-FOUR EFFECT OF LESSEE'S HOLDING OVER Any holding over after the expiration of the term of this Lease, with consent of Lessor, shall be construed to be an extension of the tenancy for one year, at the same annual rental as required to be paid by Lessee for the period immediately prior to the expiration of the term hereof, and shall otherwise be on the terms and conditions herein specified, so far as applicable . SECTION TWENTY-FIVE OPTION TO PURCHASE Lessee shall have an option to purchase from Lessor the premises at the sum of five dollars and twenty cents ($5.20) per square foot. It is estimated that there are 74,587 square feet, this estimate is subject to verification and if there are 7 4,587 square feet the purchase price would be $387,852.40 Notice of election of purchase option shall be made within the original three (3) year term of the Lease. Lessor shall deliver title by Warranty Deed, free of all liens, deed of trust claims, taxes and assessments, usual proration of truces and other charges shall be as customarily in the Denver metropolitan area. SECTION TWENTY-SIX TERMINATION This Lease may be terminated upon agreement of the Lessor and Lessee or for any reason heretofore stated in this Lease. This Lease is cancelable if a redevelopment proposal that is acceptable to the Lessor and Lessee is submitted by a redeveloper. -6 - ., SECTION TWENTY-SEVEN PARTIES BOUND The covenants and conditions herein contained shall, subject to the provisions as to assignment, transfer, and subletting, apply to and bind the heirs, successors, executors, administrators, and assigns of all of the parties hereto; and all of the parties hereto shall be jointly and severally liable hereunder. I N WITNESS WHEREOF, the parties have executed this Lease at Englewood, Colorado, the day and year first above written. ENGLEWOOD URBAN RENEWAL AUTHORITY By:55L MN_ Steven Mulhern, Chairman ATTEST: ~ ~ Executive Secretary STATE OF COLORADO ) ) SS. COUNTY OF ARAPAHOE) The foregoing Lease of Real Property between the ENGLEWOOD URBAN RENEW AL AUTHORITY and the CITY OF ENGLEWOOD was executed before me by Steven Mulhern as Chairman, and Lpg D 01,DhW. ~s Executm Secretary of the Englewood Urban Renewal Authority, on the .i'.r:'. ay of ~}:., aJJ.... , 1993. ATTEST: Patricia H. Crow, City Clerk J1Jt ~ADA2CoA~2&~UJ- Notary Public Address: CITY OF ENGLEWOOD By: Clyde E. Wiggins, Mayor -7- Date April 5, 1993 ~Cll... OOMMCINICATION 11 d Subject Lease of South Acoma Street Parking Lot INITIATED BY Englewood Urban Renewal Authority STAFF SOCJRCE Lee D. Merkel, Executive Director/Executive Secretary ISSCJE/ACTION PROPOSED The Urban Renewal Authority recommends approva l of a Bill for Ordinance approving a lease between the Englewood Urban Renewal Authority and the City of Englewood, Colorado for real property in the 3400 block of South Acoma (Parking Lot). PRE.VIOCl5 COCJNCll... ACTION City Council approved a lease of the property owned by the Englewood Urban Renewal Authority in the 3400 block of South Acoma Street in 1988, by Ordinance No. 41, Series of 1988. The initial lease was for a three year period, with the option to renew for successive one year terms. BACKGROCIND The vacant lot on the east side of the 3400 block of South Acoma Street is owned by the Englewood Urban Renewal Authority, and has been leased by the City of Englewood since 1989. The lot was improved to provide off-street parking for the businesses in the 3400 block of South Broadway, and along Englewood Parkway. STAFF ANALYSIS The vacant lot on the east side of the 3400 block of South Acoma Street is the Englewood Ur- ban Renewal Authority's remaining developable parcel in Downtown Englewood. There have been no redevelopment proposals submitted for this parcel, nor are any expected in the fore- seeable future. The lease of the lot to the City, and the improvement of the lot by the City, does provide off-street parking for the businesses in the 3400 block of South Broadway, and along Englewood Parkway. FINANOAL IMPACT The initial lease fee to the City of Englewood was $1.00 per year. This lease amount was in- creased through negotiation by former Executive Director Wanush to $10.00 per year.