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HomeMy WebLinkAbout03/30/2011RENEWAL WHEAT RIDGE Progress Through Partnership AGENDA WHEAT RIDGE URBAN RENEWAL AUTHORITY March 30, 2011 Notice is hereby given of a Public Meeting to be held before the City of Wheat Ridge Urban Renewal Authority on Wednesday, March 30 at 6:00 p.m., in the Council Chambers of the Municipal Building at 7500 West 29th Avenue, Wheat Ridge, Colorado. Individuals with disabilities are encouraged to participate in all public meetings sponsored by the City of Wheat Ridge. Call Heather Geyer, Public Information Officer at 303 -235 -2826 at least one week in advance of a meeting if you are interested in participating and need inclusion assistance. 1. Call the Meeting to Order 2. Roll Call of Members 3. Approval of Minutes — February 15, 2011 4. Public Forum (This is the time for any person to speak on any subject not appearing on the agenda. Public comments may be limited to 3 minutes.) 5. Agreement to Amend /Extend contract with Wazee Partners, LLC 6. Update on 44 and Wadsworth 7. Other Matters 8. Adjournment MINUTES RENEWAL WHEAT RIDGE February 15, 2011 1. Call the Meeting to Order The meeting of Renewal Wheat Ridge was called to order by Chair Adams at 6:00 p.m. in the council chambers of the Municipal Building, 7500 West 29 Avenue, Wheat Ridge, Colorado. 2. Roll Call of Members Board Members Present: Rick Adams James Bahrenburg Janet Leo Walt Pettit Tom Radigan Larry Schulz Jesse Hill Also Attending: Patrick Goff, Executive Director Corey Hoffmann, RWR Attorney Steve Art, Economic Development/ Urban Renewal Manager John Reinsma, Weston Solutions Nick Moore, Weston Solutions Jared Johnson, Weston Solutions Tyler Downs, Wazee Partners Chris Downs, Wazee Partners Ann Lazzeri, Recording Secretary Chair Adams introduced Jesse Hill as a new member of Renewal Wheat Ridge. 3. Approval of Minutes — January 18, 2011 It was moved by James Bahrenburg and seconded by Walt Pettit to approve the minutes of January 18, 2011 as presented. The motion carried 4 -0 with Rick Adams, Tom Radigan and Jesse Hill abstaining. 4. Public Forum (This is the time for any person to speak on any subject not appearing on the agenda.) Renewal Wheat Ridge - 1 — February 15, 2011 5. Resolution 03 -2011— Infrastructure Improvement Agreement A. Notice to Proceed — Demolition of Existing Buildings and Infrastructure Patrick Goff introduced this item. The Notice to Proceed is to allow for demolition at 44 and Wadsworth. The Infrastructure Improvement Agreement is a master agreement that provides for the demolition as well as future work. As additional projects come forward, it will be necessary to approve separate Notices to Proceed. Corey Hoffmann briefly reviewed the Notice to Proceed and the Infrastructure Agreement. Nick Moore Weston Solutions Mr. Moore, an engineer working on both the demolition and the development of the project, explained that under their cost plus fixed fee contract, they don't typically carry a bond because they don't get paid until work is completed. Weston has budgeted for a warranty and performance bond at 3% of the total project cost which would amount to approximately $11,000. RWR could waive the requirement for a bond that would eliminate that amount from the total fee. Weston requires bonding for subcontractors who perform work over $100,000. John Reinsma Weston Solutions In response to a question from Tom Radigan, Mr. Reinsma stated that there will be no incremental costs as a result of green demolition. He noted that the selected contractor owns a recycling /salvage yard which will reduce the cost involved if it were necessary to take salvage to another recycling contractor. Patrick Goff stated that adequate funds are available for demolition costs. It was moved by Walt Pettit and seconded by James Bahrenburg and Larry Schulz to approve Resolution No. 03, Series of 2011, a resolution approving an Infrastructure Improvement Agreement with Weston Solutions in connection with a proposed redevelopment project in the City of Wheat Ridge. The motion carried 7 -0. It was moved by Larry Schulz and seconded by James Bahrenburg to issue a Notice to Proceed in an amount not to exceed $395,000 and that will exclude the bond of 3% for Weston. The motion carried 7 -0. Renewal Wheat Ridge -2— February 15, 2011 6. Resolution 04 -2011— Purchase Agreement with Wazee Partners Corey Hoffmann presented this item. He reviewed his memorandum that addressed the high points of the Purchase and Sale Agreement. The agreement is for purchase of a 2.71 acre parcel at a purchase price of $880,000 ($704,000 for purchase of land and $176,000 for development impact assessments). The purchase is contingent upon Wazee Partners receiving a CHFA tax credit allocation. Tyler Downs Wazee Partners In response to a question from Rick Adams, Mr. Downs explained that if their request is not approved by CHFA in the first round, they would reapply. Chris Downs Wazee Partners Mr. Downs commented that CHFA seems to typically encourage re- application and approve on the second round. CHFA likes local support as well as construction in urban renewal areas. Another favorable aspect is that the city has indicated commitment to the project by underwriting costs. CHFA is also favorable to senior housing. It was moved by Janet Leo and seconded by James Bahrenburg to approve Resolution No. 04, Series of 2011, a resolution approving a purchase agreement by and between the Wheat Ridge Urban Renewal Authority and Wazee Partners in connection with a proposed redevelopment project in the City of Wheat Ridge. The motion carried 7 -0. 7. Community Development Referral — Cabela's Annexation and Amended ODP This item was presented by Steve Art. The Wheat Ridge Community Development Department has received a two -fold application for approval of an amended Planned Commercial Development Concept Outline Development Plan (ODP) for property located at 4000 Cabela Drive and Specific Development Outline Development Plans for various properties within the concept ODP area. Renewal Wheat Ridge is charged with determining whether or not this application is in conformance with the Urban Renewal Plan. It was moved by James Barhenburg and seconded by Walt Pettit that Renewal Wheat Ridge finds that the application does comply with the stated goals of the Urban Renewal Area. The motion carried 7 -0. Renewal Wheat Ridge -3— February 15, 2011 8. Other Matters • Walt Pettit performed a detailed analysis of fees and credits associated with water taps for the 44 and Wadsworth redevelopment project. He provided copies of his analysis to the Board. He estimated total tap fees for site at $305,000 which does not include the commercial portion on Wadsworth. • Brief discussion was held regarding the possible construction of a Jefferson County building on the 44 and Wadsworth site. 9. Adjournment It was moved by Walt Pettit and seconded by Larry Schulz to cancel the March 1, 2011 meeting. The motion carried 7 -0. The meeting was adjourned at 7:42 p.m. The next meeting is scheduled for March 15, 2011. Rick Adams, Chair Renewal Wheat Ridge February 15, 2011 Ann Lazzeri, Secretary M HAYES, PHILLIPS, HOFFMANN & CARBERRY, P.C. 1530 Sixteenth Street, Suite 200 Denver, Colorado 80202 -1468 Telephone: (303) 825 -6444 Facsimile: (303) 825 -1269 Corey Y. Hoffmann Kendra L. Carberry Jefferson H. Parker Fairplay Office 675 Main Street P.O. Box 1046 Fairplay, CO 80440 Telephone: (719) 836 -9005 Facsimile: (719) 836 -9010 Elizabeth C. Gross Christine C. Stretesky Cristina DiMaria Of Counsel John E. Hayes Herbert C. Phillips J. Matthew Mire RENEWAL WHEAT RIDGE MEMORANDUM TO: FROM: DATE: RE: BOARD OF COMMISSIONERS COREY Y. HOFFMANN, ESQ MARCH 29, 2011 PURCHASE AND SALE AGREEMENT — NEED FOR AMENDMENT At the Renewal Wheat Ridge Board's special meeting of March 30, 2011, you will be considering whether to approve an Agreement to Amend the Purchase Agreement between Renewal Wheat Ridge ( "RWR ") and Wazee Partners, LLC ( "WP "). This Memorandum attempts to summarize the reasons and the timing for the proposed amendment. There are two mechanisms under the Purchase and Sale Agreement for WP to object to the legal adequacy of the property being acquired to assure it is getting the property necessary to construct the proposed 88 residential apartment units contemplated to be age restricted (senior) housing. The first mechanism is an opportunity to object to unsatisfactory title conditions under Article 4 of the Agreement. Any objection to title conditions is required to be cured by RWR by March 31, 2011, or the Purchase Agreement terminates automatically. The second mechanism specifically contemplated under the Purchase Agreement obligates RWR under Article 5 of the Purchase Agreement to deliver a Fully Improved Legally Subdivided Lot as a "condition precedent" to closing. The difficulty in this situation is characterizing whether certain exceptions to title indentified by the title commitment are unsatisfactory title conditions subject to Article 4 of the Purchase Agreement, or matters that can be resolved by the creation of the Fully Improved 3/19/11 Q: I USERSIWRURAICYH1101I1WAZEE PARTNERS -MKDOC March 29, 2011 Page 2 Legally Subdivided Lot as a "condition precedent" to closing pursuant to Article 5 of the Purchase Agreement. In addition, the title conditions shown by the title policy are attached to the entire RWR property consisting of over 9 acres, and the creation of "Fully Improved Subdivided Lot" to be conveyed to WP is intended to create a 2.17 acre lot through the City's subdivision process. As a result, many of the title conditions cannot be resolved until the "Fully Improved Subdivided Lot" is created. In other words, now that the title work has been received and evaluated by WP, they are unwilling to defer those title conditions that they deem unsatisfactory until the creation of the Fully Improved Legally Subdivided Lot, because to do so would in their opinion be a waiver of such title conditions that in the future could not be cured by the subdivision process. Thus, the amendment sought here would extend the time for curing unsatisfactory title conditions until May 16, 2011. A future amendment may be contemplated depending on what is included in the subdivision process, to better "marry" the title conditions to the subdivision process. However, if the amendment is not acted upon by RWR, the contract by its own terms will expire on March 31, 2011. 3/29111 Q:1 USERSIWRUMCM201II WAZEE PARTNERS --MO2. DOC 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 The printed portions of this form, except differentiated additions, have been approved by the Colorado Real Estate Commission. (AE41-8- 10) (Mandatory 1 -11) THIS FORM HAS IMPORTANT LEGAL CONSEQUENCES AND THE PARTIES SHOULD CONSULT LEGAL AND TAX OR OTHER COUNSEL BEFORE SIGNING. AGREEMENT TO AMEND/EXTEND CONTRACT Date: March 2011 1. This agreement amends the contract dated February 23, 2011 (Contract), between Wheat Ridge Urban Renewal Authori ty (dba Renewal Wheat Ridge), an urban renewal authority created pursuant to C.R.S. X31 -25 -101, et seq., and body politic an d corporate (Seller), and Wazee Partners, LLC, a Colorado limited liability company (Buyer), relating to the sale and purchase of the following legally described real estate in the County of Jefferson Colorado: See Exhibit A (attached hereto) consisting of approximately 96,105 square feet of land (2.206 acres + / -) and known generally as a part of 7300, 7340 and 7540 West 44` Avenue, Wheat Ridge, Colorado (Property). NOTE: If any item is left blank or is marked in the "No Change" column, it means no change to the corresponding provision of the Contract. If any item is marked in the "Deleted" column, it means that the corresponding provision of the Contract to which reference is made is deleted. 2. § 3. DATES AND DEADLINES. [Note: This table may be deleted if inapplicable.] Item No. Reference Event Modification I § 1.2 Definition of "Due Diligence Period" Change 3/31/11 to 5/2/11 2 § 4.1.3 Seller's Right to Cure Change 3/31/11 to 5/16/11 3 Exhibit A Legal Description Change El Paso County to Jefferson Coun 25 26 27 28 29 30 31 32 33 34 3. Other dates or deadlines set forth in the Contract shall be changed as follows: None 4. Additional amendments: None All other terms and conditions of the Contract shall remain the same. This proposal shall expire unless accepted in writing by Seller and Buyer as evidenced by their signatures below and the offering party to this document receives notice of such acceptance on or before March 30, 2011, by 5:00 pm Buyer's Name: Wazee Partners, LLC Buyer's Signature Date Seller's Name: Wheat Ridge Urban Renewal Authority Seller's Signature Date 35 No. AE41 -8 -10. AGREEMENT TO AMEND/EXTEND CONTRACT Page 1 of 1