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HomeMy WebLinkAbout2000-05-03 EURA MINUTES• • • ENGLEWOOD URBAN RENEWAL AUTHORITY May 3, 2000 I. CALL TO ORDER The meeting of the Englewood Urban Renewal Authority was called to order at 5:40 p.m. in the Community Room of Englewood City Hall, Chairperson Weddle presiding. Present: Bertoluzzi, Garrett, Haraldsen, Woodward, Weddle, Roth (entered late) Gryglewicz, Executive Director/Executive Secretary Absent: Lindsey Also present: EDDA Director Celva EDDA Chairperson Sanchez II. APPROVAL OF MINUTES February 2, 2000 Chairperson Weddle called for consideration of the Minutes of February 2, 2000. Garrett moved: Weddle seconded: The Minutes of February 2, 2000 be approved as written . AYES: NAYS: ABSTAIN: ABSENT: Bertoluzzi, Weddle, Haraldsen None Garrett, Woodward Lindsey, Roth The motion carried. III. ACOMA STREET PARKING LOT Chairperson Weddle welcomed EDDA Director Celva and EDDA Chairperson Sanchez to the meeting. Mr. Celva distributed plans for the proposed improvement of the Acoma Street parking lot, and development of the Broadway/Englewood Parkway frontage. The City of Englewood owns 50 feet fronting on South Broadway, the EURA owns approximately 27.5 feet fronting on South Broadway, and all of the property currently used for parking on South Acoma Street. Mr. Celva stated that the EDDA has been working with the City of Englewood, and with EURA attorney Benedetti, to facilitate transfer of the EURA property to EDDA; in turn EDDA has agreed to pay legal and other expenses incurred by the EURA up to $2,500 in connection with the conveyance of the parking lot to EDDA. Expenses over and above $2,500 will require au- thorization of the EDDA Board of Directors. 1 • • • Mr. Celva stated that the South Acoma Street frontage will be improved and turned over to the City; usage will be for the South Broadway merchants . The Broadway/Englewood Parkway frontage will be held by EDDA and marketed for development. EDDA envisions a one or two story structure, with retail on the first level and possibly office development on the second level. The development on the South Broadway/ Parkway frontage will have to be "self-contained" - they will not be pennitted to use any of the parking in the Acoma Street lot. This may entail de- velopment of underground parking for the retail/office use on South Broadway/Parkway use. Mr. Celva stated that the market will dictate what can be constructed on this site. Mr. Celva stated that the existing landscaped area in the center of the Acoma Street lot will be eliminated; this will result in a net gain of three parking spaces. Mr. Celva directed the attention of Authority members to a detailed cost sheet for improvement and landscaping of the Acoma parking lot. Mr. Celva stated that a special improvement district will need to be formed, and those businesses using the parking lot will be assessed for the im- provement costs . The assessments will be "weighted" -those businesses/properties closest to the parking lot will pay a higher assessment. Mr. Celva discussed improvements that will be done on South Broadway this summer; this in- cludes undergrounding of electrical service , new street furniture, transit shelters, etc. Mr. Celva stated that EDDA began the discussions regarding the parking lot because the Broad- way businessmen in the 3400 block, west side , were concerned that the EURA-owned property could be sold for redevelopment and they could lose their parking. Mr. Celva emphasized that the EDDA has not yet approached any of the property owners/business people about formation of a special improvement district, or the assessments the y would have to pay in conjunction with the project. Mr. Haraldsen asked if the South Broadway improvements would eliminate any of the parking on South Broadway. Mr. Celva responded that no on-street parking will be eliminated because of the Broadway improvements ; the street will not be widened. Mr. Celva stated that the city is agreeing to participate in the project, and will pay $90,200 to pave the Broadway/ Acoma alley in the 3400 block , and also provide assistance with the under- grounding costs . Mr. Garrett asked if businesses on the west side of the 3400 block of South Broadway will im- prove rear entrances to the stores if this project is approved . Mr. Garrett noted that some en- trances to businesses from the alley-side are better than others. Mr. Celva agreed that improved entrances from the alley will be very important in the project. Mr. Gryglewicz briefly discussed a draft "tri-party agreement", that has been developed in con- junction with EURA Attorney Benedetti , the EDDA attorney , and City Attorney Brotzman. Mr. Gryglewicz stated that he has received a copy of the draft agreement. 2 • Mr. Celva reiterated the proposal that the EURA tum the property they own over to EDDA at no cost, with the exception of the administrative expenses incurred as part of the transfer (EDDA to pay these costs); by this action the EURA and EDDA will be revitalizing and improving the property, and bring an increased retail presence to the area. The proposed retail improvements will increase revenues to the Tax Increment Financing district for EURA. • Mr. Garrett asked who will have development rights on the Broadway/Parkway frontage. Mr. Celva stated that EDDA will work with the City, but the property would be marketed and sold to a developer. He stated that he thinks the property should be brought under one ownership, mar- keted, and developed. He reiterated that the site , once developed, will have to be "self- contained" so far as parking is concerned -the developer must provide required parking for the development on the same site, and this may entail construction of underground parking. Mr. Haraldsen asked for clarification on why the City owns part of the Broadway frontage, and the EURA owns Broadway frontage and Parkway frontage . Mr. Celva stated that EDDA will tum the parking lot , once improved , over to the City for main- tenace; he stated that EDDA does not want to be in the business of owning and maintaining park- ing lots -they "try to avoid responsibility wherever possible." Mr. Haraldsen asked if there would be sufficient parking to accommodate the Broadway busi- nesses, plus parking for the new development , and for customers who may choose to park on Acoma and cross the street to Kinko's . Mr. Celva reiterated the need for the comer development to be "self-contained", and provide required parking on-site. Mr. Celva discussed the need for development of a management plan for the Acoma Street parking lot. He noted that the parking lot will have to accommodate customer parking as well as employee parking . Mr. Celva did note that the current parking lot is full on occasion -usually around the noon hour, and there is al- ways on-street parking along South Acoma Street. Mr. Celva briefly discussed the "tri-party agreement", and that EDDA will pay for the adminis- trative, legal and incidental costs incurred by EURA in the transfer of the property to EDDA. Once the comer lot is sold to a developer, the EDDA will return the proceeds, less expenses in- curred by EDDA in development of the parking lot, to the EURA. Mr. Bertoluzzi asked if the proposed development is contingent on the EURA "giving" the land to the EDDA . Mr. Celva stated that it is ; he pointed out that EDDA is estimating improvement costs of $500,000+ for the parking lot. The corner Broadway/Parkway frontage was assessed at $400 ,000. If EDDA were to pay the assessed value of the site , plus the $500,000 for parking lot improvements, Mr. Celva questioned that the idea of a special improvement district and assess- ments could be "sold" to the property owners and businessmen. Mr. Celva acknowledged that the extent of the special improvement district has yet to be determined ; he suggested that the dis- trict would encompass both sides of South Broadway, but didn't know whether the district would extend north of the Parkway, or south of Hampden Avenue . • Mr. Bertoluzzi asked who will own the land if the development does occur. Mr. Celva stated that the land would be sold to a developer. Mr. Bertoluzzi asked what impact this will have on 3 • the revenue stream coming to the Authority. Mr. Gryglewicz stated that revenues from the park- ing lot will not increase; if development does occur on the north end of the site, it could increase property tax revenues and sales tax revenues. • • Mr. Woodward questioned the economic feasibility of developing underground parking for the retail/office development on the Broadway/Parkway frontage . Mr. Celva pointed out that EDDA is not dictating the type of development, only suggesting that retail and office would be accept- able. Mr. Celva stated that Englewood Parkway is to be a vital link between South Broadway and CityCenter Englewood; the fact that it crosses the Wal-Mart parking lot does not make it a prime pedestrian link . Mr. Garrett discussed the improvements that will occur on the Parkway, includ- ing development of a "round-about" in the intersection at Cherokee Street, future street realign- ment of the Parkway, and development of s huttle service between CityCenter Englewood and the medical campus. Mr. Celva stated that he would appreciate it if the Authority could agree "in principle" to con- veyance of the property to EDDA at no cost; they could then begin the laying the groundwork for formation on the special district. Mr. Celva discussed the timing factor EDDA is facing to get everything done and through City Council in time to get this issue on the November ballot. He suggested the need for another Authority meeting to finalize the property conveyance . Mr. Bertoluzzi asked with whom Mr. Celva had been negotiating this property conveyance; he stated that he, as a member of the EURA, has not seen this plan before this evening. He ex- pressed discomfort with the request to grant approval without more information. Mr. Bertoluzzi pointed out that the land on South Acoma Street, and some of the Broadway frontage, is owned by the EURA; the Authority should be actively involved in planning the development and use of the land, or the disposition of the land. What he is hearing at this time is the EURA is to tum the land over to the EDDA , and the EDDA will then tum the parking lot over to the City. Mr. Celva stated that he wants the EURA to be an acti ve participant; the EDDA became in- volved to preserve the "arm 's length " relationship between the EURA and the City , and to assure continuance of the parking lot as a parking lot. Mr. Woodward requested clarification of the ownership , and of references to "bond holders". Mr. Gryglewicz discussed the formation of the EURA district , the formation of the tax increment financing , and sale of bonds. The bonds were sold at high interest (9 % to 11 %), unrated , unin- sured , and were basically "junk bonds ". The EURA was unable to meet the debt service pay- ment in June , 1991, and went into default. At the time of the default, the trustee called all bonds due , which accelerated payment; interest is compounding and the overall debt is increasing even though all revenues due and payable to bondholders received by the EURA is paid to the Trus- tee . Mr. Gryglewicz expressed the opinion that the proposed property conveyance and develop- ment can be a "win-win " situation; it could encourage the Broadway/Parkway frontage to de- velop , thereby increasing tax base for the City and Authority , and improvement of the parking lot will provide assurance to Broadway merchants of parking, plus the City will have control of the site. Mr. Gryglewicz pointed out, however, that if an offer to purchase the site were to be made 4 • • • to the EURA prior to conveyance of the land, the Authority would be obligated to accept that offer. Mr. Gryglewicz reiterated that any revenues coming to the Authority would go to the bondholders . Mr. Celva referenced the State Statutes, and questioned whether there is anything in the Statutes requiring or allowing an URA to acquire and hold land. Mr. Woodward asked if the Authority had a "mission statement". Mr. Celva suggested that the mission statement would be contained in the State Statutes . Mr. Garrett discussed the formation of the tax increment district, and how the TIF works. Mr. Garrett also made reference to an opinion from City Attorney Brotzman that conveyance of the property would not be defrauding bondholders. Mr. Gryglewicz further discussed the bond repayment default, the lawsuit by the Trustee on behalf of bondholders, and the undetermined expiration date of the TIF . Mr. Grygle- wicz stated that projections done by the City Finance Department have indicated that bondhold- ers should recoup their initial investment plus a small amount of interest by the termination of the TIF. Mr. Woodward asked for clarification of the EDDA sale of the Broadway/Parkway property, and disposition of the proceeds from this sale. Mr. Celva stated that all EDDA costs would be sub- tracted from the proceeds , with the remaining proceeds to go to the EURA and to the City. Mr. Celva expressed the opinion that the money the EURA may receive from the sale of the property would not have to be paid to the bondholders , that the only funds pledged to repay the debt is revenues from TIF. Ms . Sanchez noted that if the EURA were to try to market the property, the Authority would have to take the highest bid; EDDA, however, can look at what constitutes "best" use of the property. Mr. H araldsen asked what is needed for this to go forward. Mr. Celva stated that a resolution agreeing to the property conveyance, in principle , will be of assistance. He stated that he re- ceived his copy of the proposed tri-party agreement earlier this afternoon , and has not had time to review it; he commented that revisions will be made to the agreement. Mr. Celva reiterated that EDDA would like to receive "agreement in principle ". Mr. Garrett stated that , in his opinion , the Authority can say we are supportive of the idea, but do not have the details . Mr. Celva asked if any member of the Authority has substantive objections to the proposal. Mr. Bertoluzzi stated that he wants to make sure the Authority is acting in the best interest of the property and acting in the best interest of the bondholders and community. Mr. Celva stated that a final draft of the tri-party agreement should be available by the end of this week or middle of next week . Mr. Garrett stated that the Authority would look for information from our attorney , Paul Benedetti , and City Attorney Brotzman, on analysis of the agreement. He asked that Mr. Gryglewicz discuss this with legal counsel, and get an outline of the "pros and cons" to members of the Authority. 5 • • • Mr. Celva stated that by July 3rd, information needs to be introduced to the City Council, and ap- proval by City Council must occur on July l 71h . These dates are dictated by timing to get the is- sue on the November ballot. Discussion ensued. Mr. Garrett emphasized the need for the Authority to have a copy of the tri- party agreement, a report on the pros and cons from the legal advisors, and assurance that the negotiations between the EDDA, EURA, and City attorneys is completed. Mr. Bertoluzzi asked if a developer made an offer to purchase the EURA property, would this offer be accepted without approval by the Authority. Mr. Gryglewicz stated that a meeting of the Authority would have to be called to consider the offer; the Authority would have to vote on ac- ceptance of the offer. Mr. Haraldsen asked if bondholders are putting pressure on the City to get the money. Mr. Gry- glewicz stated they are not. He reiterated his opinion that all revenues coming to the Authority are payable to the bondholders. IV. REVENUE REPORT Mr. Gryglewicz discussed the revenue report, and cited comparisons on year-to-date between 1999 and 2000 revenues. Sales tax revenues are down, but property tax revenues are up . V. COMMISSIONER'S CHOICE Mr. Haraldsen stated he is pleased to have been appointed as a member of the EURA. Mr. Har- aldsen noted that he had worked for the U.S. Postal Service for 27 years . VI. DIRECTOR'S CHOICE Mr. Gryglewicz distributed notification of the Civic Center open house and tour for City Em- ployees and Board and Commission members scheduled for Friday, May 5 between the hours of 3 and 6 p.m . Mr. Gryglewicz briefly reported on the lawsuit filed by the Trustee. The City , County and Au- thority prevailed in this suit , and the only issue to be resolved is the termination date for the TIF. No further issues were brought forth for consideration. The meeting was declared adjourned. G~G~Re&ng~ 6