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HomeMy WebLinkAbout1997-12-03 EURA MINUTES-r -(' • • • ENGLEWOOD URBAN RENEWAL AUTHORITY December 3, 1997 I. CALL TO ORDER The regular meeting of the Englewood Urban Renewal Authority was called to order at 5:35 p.m. in Conference Room A of Englewood City Hall, Chairman Havens presiding. Present: Graebner, Roth, Weddle, Havens Absent: Knuppertz, Soulliere Also present: Executive Director/Executive Secretary Gryglewicz Harold J. Stitt, NBD Planning Coordinator A quorum was declared present. II. APPROVAL OF MINUTES February 5, 1997 Chairman Havens stated that the Minutes of February 5, 1997 were to be considered for ap- proval. Graebner moved: Roth seconded: The Minutes of February 5, 1997 be approved as written. The motion carried unanimously. III. TELEPHONE POLL RATIFICATION 1997 Debt Service Budget 1998 Tolling Agreement Mr. Gryglewicz reviewed the 1997 Debt Service Budget, which was ratified by Telephone Poll on February 21, 1997. The 1997 Debt Service Budget projected a deficit balance of $31,464,550. Brief discussion followed . Weddle moved : Graebner seconded: The Urban Renewal Authority ratify the Telephone Poll of February 21 , 1997 approving the 1997 Debt Service Budget. The motion carried unanimously . 1 Mr. Gryglewicz then reviewed the Telephone Poll conducted in November, 1997, regarding the Tolling Agreement for 1998. The response on this telephone poll was six in opposition to • approval, and one member of the Authority did not respond. There was no vote in favor of signing the tolling agreement. Graebner moved: Havens seconded: The Urban Renewal Authority ratify the Telephone Poll on the 1998 Tolling Agreement; the Authority refused to sign the Agreement. The motion carried unanimously . IV. NEW BUSINESS A. Revenue Report Mr. Stitt presented the Tax Increment Revenue Comparison Report, which reflect sales tax and property tax figures by month throughout the year, and provides a comparison for the same period in the previous year. Mr. Stitt noted that sales and property tax revenues have not been posted for December, 1997. However, property taxes through November, 1997 indicate reve- nues of $504,746.46 compared to 1996 property tax revenues of $520,645.86. Sales tax reve- nues through November, 1997 show revenues of $1,721,267.62; sales tax revenues through November, 1996 were $1,750,428.07. Mr. Stitt noted that property reassessments and appeals of the reassessments by property owners may account for some of the loss in property tax revenues . Brief discussion ensued. The revenue report was accepted as presented. B. Bond Status Ms. Weddle inquired about the status of the bonds. Mr. Gryglewicz stated it is his under- standing that the bondholders, through the Trustee, have filed suit against the City of Engle- wood; however, the City has not been served. Mr. Gryglewicz stated that the suit was report- edly filed on Wednesday, November 26, 1997. It is his further understanding that the suit is against the City of Englewood, requesting that the City extend the "life" of the tax increment district and bond repayment period. Mr. Havens asked how this suit might be resolved. Mr. Gryglewicz noted that the TIF will terminate in 2005, but may extend to 2007 without specific Court direction; even if the TIF is extended by the City at the direction of the Court, there is no way the debt will be retired so long as the default continues. Mr. Gryglewicz stated that the City's position is that the bonds, when marketed, were high risk, unrated, uninsured bonds and were purchased at the risk of the bondholder. The Offering Statement is clear that the bonds are not an obligation of the City of Englewood. 2 • • Ms . Weddle asked if bondholders could appeal to a higher court if they were dissatisfied with • the lower court ruling. Mr. Gryglewicz stated that he is unsure of this . • • Mr. Havens asked if there are other Authorities in Colorado that are facing the same difficul- ties that the EURA is facing . Mr. Stitt stated that several special improvement districts have gone into default on bond issues , and other URAs have had problems ; however, the EURA is the focus of problems in the metro area . Mr. Gryglewicz agreed, and stated that , to his knowledge, the EURA is the only entity that has been sued on bond default. C . 1998 Operating Budget The proposed 1998 Operating Budget was presented for consideration. Mr. Graebner asked about the source of funds for the Operating Budget. Mr. Stitt stated that there is a small carry- over of EURA funds from several years ago; both he and Mr. Gryglewicz were unsure of the amount remaining in the account. Graebner moved: Weddle seconded : The 1998 Operating Budget be approved as presented. The motion carried. D. 1998 Debt Service Budget The 1998 Debt Service Budget was presented for consideration. Mr. Gryglewicz acknowl- edged that this budget is based on estimates at this time. Revenues of $2,284,800 are pro - jected, with expenditures estimated at $3,604,500. A 1998 year-end deficit of $32,554 ,539 is projected . Brief discussion ensued. Roth moved: Havens seconded: The 1998 Debt Service Budget be accepted as presented. The motion carried unanimously. V. COMMISSIONER'S CHOICE Graebner moved : Havens seconded: The recording secretary be commended for the quality of the Minutes of EURA meetings . The motion carried unanimously . Recording Secretary Welty thanked the members for their commendation . 3 VI. DIRECTOR'S CHOICE Mr. Gryglewicz thanked the members for their attendance. He noted that if the EURA default can be resolved, there are several projects that the EURA could provide assistance on, such as the redevelopment efforts of both the Mall and the General Iron site. Mr. Havens asked for an update on the Mall redevelopment. Mr. Gryglewicz stated that clos- ing on transfer of the property from Equitable to the City is anticipated by mid-December. The lease with Montgomery Wards has been terminated, and they will vacate the premises by the end of December , as will Renzio' s restaurant. Environmental remediation will begin in January, 1998. The City has been working with the CRNA/Compass Group and with Mr. Miller of Miller Development on development of an acceptable site plan and tenant mix. There is discussion regarding the relocation of City Hall to the former Foley's building and using the existing City Hall site for retail and/or parking. Mr. Grygelwicz stated that a lot of progress has been made in the last three or four months, and that financing aspects remain to be resolved. Brief discussion ensued. The meeting was declared adjourned. ,&a:A, ,£~~~ Gertrude G . Welty, R~cordingiecffY f:\deptlnbd \grouplboards\uralm in 97\eurarn 12-3-97.doc 4 ... -· ' • • •