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HomeMy WebLinkAbout2000-08-02 EURA MINUTESENGLEWOOD URBAN RENEWAL AUTHORITY August 2, 2000 I. CALL TO ORDER The regular meeting of the Englewood Urban Renewal Authority was called to order at 5:35 p .m . in the Community Development Conference Room of the Englewood Civic Center. Chairperson Robin Weddle presided. Members present: H araldsen, Roth, W oodward, Bertoluzzi , Garrett , Weddle Gryglewicz , Ex-officio Members absent: Lindsay Also present: EURA legal counsel Paul Benedetti City Attorney Dan Brotzman City Manager Gary Sears Community Development Director Robert Simpson Senior Planner Mark Graham II. APPROVAL OF MINUTES May 3 , 2000 June 21 , 2000 Ms . Weddle stated that the Minutes of May 3 and June 21 were to be considered for approval. Roth moved: Weddle seconded: The Minutes of May 3, 2000 be approved as written . AYES: NAYS : ABSTAIN : AB SEN: Roth, Woodward, Bertoluzzi , Garrett, Haraldsen , Weddle None None Lindsay The motion carried. Roth moved: Bertoluzzi seconded: The Minutes of June 21 , 2000 be approved as written . AYES : NAYS: ABSTAIN : ABSENT: Roth, Woodward, Bertoluzzi , Haraldsen, Weddle None Garrett Lindsay The motion carried. H:IGROUP\BOARDSIU RAIMinutes\Mu1 2000\EURA 8·2·2000.doc III. DESIGNATION OF NEW EXECUTIVE DIRECTOR City Manager Sears City Manager Sears addressed the members, and expressed his appreciation for their work , and to Mr. Gryglewicz for his leadership as Executive Director/Executive Secretary the past five years . Mr. Sears stated that the Authority will be asked to assist the City in new projects; to guide the Authority in their new role, he is making a change in the Executive Director/Executive Secretary position , and is naming Community Development Director Robert Simpson to this po- sition. Mr. Sears stated that Mr. Simpson , in his capacity as Director of Community Develop- ment and as Executive Director of the EURA , will be working on redevelopment of the General Iron Works (GIW) site at West Yale Avenue and South Santa Fe Drive . The Regional Transpor- tation District (RTD) is interested in developing at least part of the site as their regional mainte- nance headquarters, and City staff will be negotiating with R TD and with other developers who have expressed interest in the GIW site . Mr. Haraldsen referenced an article in a recent Englewood Herald in which it was stated " ... the proposal is to have the Englewood Urban Renewal Authority act as the holding entity for the land while the contracts are awarded for the development." M r. Haraldsen asked for clarification of what "holding entity" means . Mr. Haraldsen was advised that this clarity will be forthcoming during discussion scheduled later on the agenda. Mr. Garrett discussed the "holding entity" that was created on the Cinderella City mall site -the Englewood Environmental Foundation (EEF); this process has proven quite successful for the redevelopment of this site . However, in the GIW scenario it was felt that rather than creating another "foundation," the EURA could serve as the "holding entity" from time of purchase until the property is turned to a developer. Mr. Sears stated that the proposed scope of work of the Authority, and the staff change to guide activities of the EURA, has been discussed with City Council ; they have expressed their support for the increased scope of work and the staffing change . Mr. Sears emphasized that the scope of the Authority's activities will be focused on development/redevelopment, and that this change of focus has led to the change in personnel. Mr. Benedetti suggested that , procedurally , it would be best for Mr. Gryglewicz to submit his "resignation" as Executive Director/Executive Secretary of the Authority , and that the Authority may then designate Mr. Simpson as the Executive Director/Executive Secretary . Mr. Gryglewicz verbally submitted his resignation as Executive D irector/Executive Secretary of the Englewood Urban Renewal Authority . Discussion followed. Weddle moved: Roth seconded: The EURA accepts the resignation of Frank Gryglewicz as Executive Di- rector/Executive Secretary . H:IGROUP\BOARDSIU RA\Mu1utcs\M u1 2000\EURA 8-2-2000 .<loc Mr. Sears further addressed the reasoning for staffing changes , and noted that the City is trying to facilitate the Authority's ability to focus on the development/redevelopment challenges ahead . Mr. Haraldsen asked for explanation of the powers of the Authority. He again referenced the article published in the Englewood Herald, and the phrase "holding entity". Mr. Benedetti briefly addressed powers of the Authority . The vote on the motion was called: AYES: NAYS : ABSTAIN: ABSENT: Woodward, Bertoluzzi , Garrett , Haraldsen, Roth, Weddle None None Lindsay The motion carried. Garrett moved: Roth seconded: Robert Simpson be designated as the Executive Director/Executive Secre- tary of the Englewood Urban Renewal Authority. Mr. Bertoluzzi discussed concerns with the "process" that the change of staffing has followed. He asked if future personnel changes would be brought to the Authority for approval after Coun- cil/Manager determination, or if the Authority would be provided advance notice of a proposed staffing change and given an opportunity to discuss the proposal. He suggested it would have been appropriate for the City Manager to have sent the Authority a letter setting forth the events leading up to the personnel changes, and giving the Authority an opportunity to discuss the issue. Mr. Sears apologized for the way the personnel change has been presented to the Authority, and agreed that he should have communicated the City's intent to the Authority prior to this meeting. Mr. Sears discussed the urgency to effect the staffing change in light of the RTD issue on the GIW site . Mr. Benedetti discussed the relationship difference of the EURA and the City from other boards and commissions with the City; he noted that boards such as the Planning Commission are han- dled "internally" by the City Manager. Staffing of the EURA has been provided by the City , but an authority can engage their own staff if they have funding. The funding of the EURA has also been provided by the City, and the Authority has in the last few years met sporadically. Ms . Weddle asked if it was possible to have co-Executive Directors -Mr. Gryglewicz to handle financial issues, and Mr. Simpson to be responsible for developmental issues . Mr. Benedetti suggested that Mr. Gryglewicz will still have involvement with the Authority regarding financial issues. City Manager Sears agreed that if there are issues relating to the bonds , Mr. Gryglewicz will provide assistance to the Authority. Mr. Garrett stated his opinion that the members of the EURA were "blind-sided" by the City Council vote on the South Acoma parking lot issue; he stated that there was not consensus on the H:IGROUP\BOARDSIURA\Mu1utes\Min 20001EURA 8-2-2000.doc Council regarding the special improvement district, assessment methodology, and property trans- fer. Mr. Garrett suggested that this lack of consensus was not brought to the attention of the Au- thority prior to the meeting of June 21 51 . Mr. Bertoluzzi stated that he appreciated the rationale for the personnel change ; he was just ques- tioning the process. The vote on the motion to designate Mr. Simpson as Executive Director was called: AYES : NAYS: ABSTAIN: ABSENT: Bertoluzzi , Garrett, Haraldsen, Roth, Woodward, Weddle None None Lindsay The motion carried. IV. OLD BUSINESS Tri-Party (Acoma Street) Agreement Mr. Garrett stated that when the property transfer, special improvement district and assessment methodology were presented to City Council by the EDDA staff, the City Council had a three-to- three vote, with one member absent, on the issue. Because of the tie vote, the motion to approve the ordinance setting a special improvement district and assessments was killed . Mr. Garrett stated that the EDDA didn't like the way the assessments were done , but wanted to proceed anyway to establish the special district. Mr. Garrett stated that not all of City Council was com- fortable with the suggested procedure . Mr. Garrett stated that from the presentation EDDA gave to City Council, that organization did not care about the Acoma parking lot , but did care about development of the corner property on Broadway and Englewood Parkway . Mr. Garrett stated that he is confident there will be more development south and east of the Civic Center, and there is a great opportunity to make the Acoma project work. Mr. Garrett suggested that at least two of the Council members who voted against the ordinance are in favor of retaining and improving the parking lot, but were not in favor of the assessment methodology. Ms . Weddle referenced a copy of a letter sent to the EDDA and EURA members from Council member Bradshaw; she stated that this letter indicates the parking lot was the issue . Mr. Garrett discussed a proposal which City staff brought to City Council a number of months ago which would have been retail businesses on the ground level, and two stories of senior hous- ing above the retail. Bond monies were available that could be used to finance housing for sen- iors. To access the funds , an inducement resolution approval was required . When the EDDA heard about the inducement resolution , they became extremely upset and felt the proposed de- velopment would take away the parking lot on South Acoma Street. City Council did not ap- prove the inducement resolution, and agreed that senior housing on this site should not be pur- sued. H:IG ROUPIBOARDSIURA\Minutes\Mu1 2000\EURA 8-2-2000.doc Mr. Woodward stated that he understood if a third party offered to purchase this property , the Authority would have to accept the offer. Mr. Brotzman stated that the lawsuit on behalf of bondholders has been settled; if someone now offers to purchase the property the Authority needs to consider it, but if the board chose not to sell they do not have to do so. Mr. Benedetti stated that § 106 of the State Statute discusses disposition of property; as long as the Authority acts in a reasonable manner, there will be no problems with sale of property or holding the prop- erty . Mr. Benedetti noted that the Authority still owes over $30 million on the bonds, and this amount will never be paid off; however, investors will probably get all of their original principal and possibly 3 % interest. Mr. Haraldsen noted that the property had been vacant for a number of years; he suggested 30 to 40 years . It was pointed out to Mr. Haraldsen that this property became vacant only in the mid- 80 ' s -approximately 15 years vacancy. Mr. Benedetti stated that the EURA does have a lease agreement with the City of Englewood whereby the City pays the Authority a nominal sum per year and allows usage of the property as a parking lot. Mr. Brotzman further discussed the Tri-Party Agreement on South Acoma Street. He stated that he would recommend that the Authority not ratify the agreement. Staff needs to get together with EDDA personnel, and legal counsel, and work out a new agreement for development of the property. Mr. Simpson stated that a meeting with Mr. Celva and members of the EDDA Board has been scheduled for Thursday, August 3rd , at 9:00 a .m. to discuss the issue . Mr. Roth asked if whatever comes out of the meeting will be a "tri-party agreement". Mr. Simpson suggested that a variety of options will be explored. Mr. Garrett st ated that City Council committed to work with EDDA . Mr. Woodward asked if the issue could not be tabled rather than ratified or not ratified . Discus- sion ensued. Woodward moved: Roth seconded: The EURA table consideration of the Tri-Party Agreement. AYES: NAYS: ABSTAIN: ABSENT: Garrett, Haraldsen, Roth, Woodward, Bertoluzzi, Weddle None None Lindsay The motion carried. V. NEW BUSINESS A. Revenue Report Mr. Gryglewicz discussed the revenue report noting that sales tax revenues to-date in 2000 are down by 3.35 % from the 1999 revenues ; property tax revenues , however, are up by 15 .66 % over 1999. Discussion ensued. Mr. Gryglewicz stated that when Wal-Mart opens , he anticipates a H:IGROUPIBOARDSIU RA\Minutes\Min 2000\EU RA 8-2-2000 .doc further reduction in sales taxes from existing businesses, some of which will be in the TIF dis- tricts. However, the Wal-Mart sales tax increases will be payable to the City of Englewood. Mr. Simpson stated that Office Depot has indicated a strong desire to relocate to the CityCenter Englewood site and will vacate their premises south of U.S. 285. Home Depot has opened on South Federal , and is impacting our Home Base store. Mr. Simpson stated that staff has already been in discussion with Mr. Bruce Etkin , owner of the Home Base site , regarding possible rede- velopment of this site. B. General Iron Works Mr. Simpson stated that staff has been working on the General Iron Works issue for at least the past three years . The immediate area has undergone a lot of changes -Santa Fe improvements and light rail development, closure of Cinderella City, and the redevelopment of the site into the CityCenter Englewood. With the closure of the Mall, the GIW site really became the focus of redevelopment considerations. Staff has worked with RTD for several years on the light rail de- velopment. When voters approved the southeast corridor light rail extension, RTD began look- ing for an area to develop a light rail-car maintenance facility. An RTD study initially identified over 20 sites, which were rapidly narrowed down, and the GIW site emerged as the first choice. The City of Englewood is land-locked; any possible population growth must come from redevel- opment of existing sites . Mr. Simpson stated that the GIW site has many assets : the size of the site (approximately 20 acres+/-) and the proximity to light-ra il to name just two. It abuts both light industrial and residential neighborhoods. There have been several uses of the site since the closure of the ironworks, and the current owner is Barton Brothers. RTD wants to acquire the site and develop it for their maintenance site; RTD does not pay either property tax or sales tax, and this will be a 24-7 operation. Staff has talked to RTD regarding the site, and RTD is willing to do a joint development. This will create an opportunity to have the light rail facilities on the north portion of the site, and leave the south portion of the site available for other development. If RTD takes the north portion , the rail spur will be eliminated. Barton Brothers needs that rail spur in conjunction with their business operation; if they do not have the rail spur, and chose to remain on the south portion of the site, they would have to resort to use of large trucks to move their materials -this could triple the truck traffic in the immediate neighborhood. Mr. Simpson further addressed the City/RTD negotiations. An additional light rail station at Bates A venue would be one benefit to the City/neighborhood if a joint development by the City and RTD can be worked out. Mr. Simpson stated that one of the goals for redevelopment of the site is the need to generate revenues for the City. Development of additional housing is also a goal , and will be a support factor for the additional transit station. The availability of the GIW site, or even a portion thereof, provides an opportunity to introduce new housing options that do not exist in Englewood today. The EURA can provide assistance to bring this property back into productive operation, to de- velop into and become part of a viable community. H:IG ROUPIB OARDS IUR A\M in utesli"1 in 2000\EU RA 8·2·2000.doc Ms. Weddle asked about the EPA and Brownfields funds; is there contamination on the site. How does the City know whether problems could arise 10 years after development that would be health or safety issues. Senior Planner Graham stated that a survey of the GIW site was commis- sioned and completed in 1997/98; this study was done by Secor. Mr. Graham referenced the general survey area on a flip chart -east of Santa Fe Drive, and north of Dartmouth Avenue. The Secor Study was a records search; they found several problems , but did not conduct actual soils sampling tests. When RTD approached the City , Council agreed to participate with RTD in a study; approximately $100,000 in EPA funds were expended to assess the GIW site. The study indicates it will require approximately $1 million to clean up the southern part of the site. This is not a reasonable risk for the City to take on , or to buy into the title chain, and is a reason for the EURA to move in to assume ownership of the site. Mr. Graham discussed required proof of clean up by the State. The highest level of clean-up would be required for residential use of the land . Mr. Simpson stated that there are several things governmental entities can and should do, includ- ing land assemblage, demolition of existing buildings , and assist with environmental remedia- tion. The governmental entities can also facilitate the agreement between RTD and other devel - opers who are interested in the south portion of the site . A major developer who has expressed great interest in the GIW site was identified. It was noted that this developer has been in contact with the City for over one year, and has also been in con - tact with RTD. Other developers have also expressed interest in redevelopment of the site . Mr. Woodward inquired about the RTD development extending into Denver, what portion of the GIW site will remain for residential development, and also whether the Winslow Crane property in Englewood would be redeveloped . Mr. Graham stated that Mr. Winslow is interested in rede - velopment of his property. Mr. Graham indicated on the map of the GIW/Winslow area that part of the GIW site is proposed for development by RTD, and the portion remaining for other rede- velopment. Mr. Graham discussed the location of structures either in Denver or Englewood for the RTD project, and the permitting/inspection nightmare that would result if the buildings were to be constructed crossing the City limits line. RTD wants 11 acres, including that formerly used by Stearns-Rogers . Further discussion ensued. Mr. Haraldsen asked if the Winslow property also contains soils con- tamination . Mr. Graham stated that there have been known spills on the property , but no in depth analysis has been done. Mr. Graham pointed out that any form of redevelopment on the Winslow or GIW site will create increased traffic . Increased residential use in the north Engle - wood area will provide additional support to Broadway retail development. Mr. Simpson discussed improvements occurring along the Broadway corridor, as well as the Santa Fe corridor. Mr. Garrett reiterated that the RTD maintenance facility will be a 24-7 operation (24 hours per day, seven days per week); when they presented the proposal to City Council, it was suggested that RTD investigate acquisition of property immediately north of Yale for part of the RTD op- eration. H:IG ROUP\BOARDSIU RA\Minutes\M in 2000\EURA 8·2·2000.doc Mr . Woodward asked if RTD had the ability to condemn property . Mr. Simpson stated that they do; Mr. Simpson reiterated that RTD pays neither property nor sales tax . Mr. Haraldsen asked how many employees RTD will have on site . Mr. Graham estimated 300 employees for the 24-7 operation . Mr. Sears noted that public hearings were held by RTD on the proposal , and presented videos of a maintenance facility . Citizens in attendance were supportive of the maintenance facility . Dis- cussion ensued. Mr. Bertoluzzi asked if staff wanted the Authority to adopt the propos e d resolution included in the packet . Mr. Simpson discussed the need to develop a "plan ", and to establish existence of general blight in this area of proposed redevelopment. The first step to establish "blight " is to conduct a condition survey of properties. RTD has begun steps to acquire property; they are on an established time frame because of the southeast con-idor light rail line con s tructi o n. Mr. Gra- ham stated that RTD wants to make offers in September and close in October on their property acquisitions. Mr. Simpson further discussed the need for the blight survey and writing the urban rene wal plan for the redevelopment area. The s urvey will be done on all 1-1 and 1-2 zoned prop- erty north of Dartmouth and east of Santa Fe that is within Englewood. Mr. GaITett noted that there ma y be some residential uses within the 1-1 and I-2 , but the rede vel- opment efforts will not be taking the homes. Mr. Woodward asked who will be paying for the blight study. Mr. Simpson discussed the fi- nances of the Authority , and means of payment for surveys, etc . Ms. Weddle asked if any of the property owners in the area have objected to the proposal. Mr. Simpson stated that letters will be sent to all affected property owners notifying them of the pro- posed survey and redevelopment plan . Mr. Benedetti noted that City Council will have to ap- prove the findings of blight and also approve any plan that is written for rede velopment. Bertoluzzi moved : Garrett seconded: The EURA approve Resolution #1 , Series 2000 , entitled A RESOLU- TION OF THE ENGLEWOOD URBAN RENEWAL AUTHORITY IN I- TIATING A SLUM AND BLIGHT STUDY AND URBAN RENEW AL PLAN FOR INDUSTRIAL ZONED PROPERTIES NORTH OF DART- MOUTH AND EAST OF SANTA FE DRIVE IN ENGLEWOOD . AYES : NAYS: ABSTAIN: ABSENT: Haraldsen, Roth, Woodward, Bertoluz z i , Garrett , Weddle None None Lindsay The motion carried. H:IGROUPIBOARDSIU RA\Minutes\Min 2000\E URA 8-2·2000 Joe C. Meeting times/dates It was noted that several of the EURA members serve on more than one City board or commis- sion . Mr. Bertoluzzi is vice-chair of the Cultural Arts Commission, which meets the first Wednesday of every month at 5 :45 p.m. at the Englewood Recreation Center. The EURA has , traditionally , met the first Wednesday of every month at 5 :30 p .m. Discussion ensued. Staff was directed to explore with membership the possibility of changing the date/time of the EURA meeting to the second Wednesday of every month at 5:30 p.m . There was no further business brought before the Authority , and the meeting was declared ad- journed. H:IGROUPIBOARDSIU RA\Minutes\Min 2000\E URA 8·2-2000.doc