HomeMy WebLinkAboutStudy Session Packet 12-03-12STUDY SESSION AGENDA
CITY COUNCIL MEETING
CITY OF WHEAT RIDGE, COLORADO
7500 W. 29th Ave.
Wheat Ridge CO
December 3, 2012
6:30p.m .
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PUBLIC COMMENT ON AGENDA ITEMS
APPROVALOFAGENDA
.L Cultural Commission year-end report -D iane Robb
2 . Staff Report( s)
a) C ommunication Center Reg ionalization
3. Perrin 's Row TIF Request
4 . E lected Offi ci a ls' Report(s)
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SUMMARY
Memorandum
Mayor DiTullio and City C~il
Patrick Goff, City Manage\/}
Daniel Brennan, Police Chief
December 3, 2012
Staff Report: Po li ce Department Regionalization Efforts
The Police Department has been engaged in regionalization efforts with surrounding communities that
seek to improve effectiveness and efficiencies in the deli very of public safety services. Since 2010.
the Chief Executive Officers (CEO's) of law enfo rcement agencies in Jefferson County have been
meeting regularly to discuss opportunities to consolidate and/or regionali ze law enforcement services
that result in improved Jaw enforcement services and/or re sult in cost sav ings for the citi zens in th e
affected communities.
TI1e Department is actively engaged in three on-going projects concerning potential consolidation or
regionalization of services. As you know, the Department has a history of successful cooperative or
regionalization efforts. Examples include the Rooney Valley Law Enforcement Firearms Training
Facility, the Foothill's Anjmal Shel ter, the Forensic Crime Lab agreement with the Lakewood Police
Department. and the recent regjonaJization efforts of the Lakewood and Wheat Ridge Police
Departments' SWAT Teams. The Department is currently working on three other projects of interest:
• Communications Center Regionalization
• Forensic Crime Lab Regionalization
• Records Management System Regionalization
The purpose of this staff report is to provide an update to C ity Council on the Communications Center
Regionalization process. Future staff reports will address the regionalization efforts concerning a
regionalized forensic crime lab and records management system.
Commun ication s Center Regionalization
In March 20 I 0, City Cou nci l conduc ted a Strategic Budget Retreat with City staff to discuss the City's
budget in response to the poor economic conditions that existed. Department directors were directed
to provide recommendations on potential budget reductions and other strategies that would assist the
City in reducing costs. The Department presented its budget. as well as strategies to address the
current budget deficit. One of the strategies presented was to look at conso lidating or regionalizing the
Department's Communication Center. This strategy was presented to City Council, based on several
factors which included the costs of maintaining communication equipment for a Communication
Center, redundancy of system costs, and staffing concerns.
Staff Report: Police Department Regionalization EfTorts
December 3, 2012
Page2
Maintaining the technology infrastructure and staffing for a Communications Center is expensive. For
instance, each 911 center has computer aided dispatch (CAD) software, hardware, phone systems.
recording systems for phone and radio, dispatch consoles, and staffing for the center. Each center
requires the same infrastructure, as well as backup redundancy. Some of these costs are covered by
Jefferson County Emergency CommunicaHons Authority (JCECA); however, the City pays for many
of these costs. including the costs to maintain the systems.
In 2009, the Department had an audit completed of the Communications Center by the Association of
Public-Safety Communications Officials (APCO}. While the assessment report spoke highly of our
personnel and equipment, the study recommended the Department increase staffing in the
Communications Center by 4-5 positions, and called for more workspace in the Cen ter. Since
previous requests for additional personnel were denied, and current economic conditions did not allow
for the hiring of additional personnel. Council gave direction to the Department to explore the
potential for consolidation or regionalization of the Department's Communication Center function.
One oflhe major challenges in exploring consolidation or regionalization of911 communication
centers is the cost of conducting a study that looks at the technology challenges, staffing, and the brick
and mortar issues if a new building is required. In 20 I 0, r met with Jefferson County law enforcement
CEO's to discuss their interest in doing a study in this area. Each of the agency heads expressed some
interest in a study. The Golden Police Department was also exploring consolidating or regionalizing
their agency's communication center.
With the support of both law enforcement and some fire department CEO's. I approached the JCECA
to ask the Authority to fund a communication center consolidation/regionalization study. After several
meetings and presentations. the JCECA gave finaJ approvaJ in 2012 to authorize $100.000 to fund a
study that would look into the consolidation/regionalization oflaw enforcement communications
centers. At this time, the Golden Police Department and Wheat Ridge Police Department have been
given di rection to explore the consolidationlrcgionalization of their communication centers. The
communities of Arvada, Lakewood and the Jefferson County Sheriff's Department have agreed to
participate in this study as well.
The City of Wheat Ridge agreed to serve as the purchasing agent for the request for proposal process.
At this time. a committee representing staff from the aforementioned agencies has reviewed the
submitted proposals and selected three vendors to conduct the consultant study. The timeline for the
project is:
• November 28, 2012
• December 2012
• December 2012
• January 2013
• March 31_ 2013
• March-Jw1e, 2013
Interview short list and select a consultant
Contract negotiations
JCECA Board approval of selected consultant
£nitial meeting with consultant and interested agencies
Completion of the study
Review of the study and recommendations
In summary. this study will provide the JCECA and participating agencies with a roadmap on the
potential costs, savings and benefits of consolidating or regionalizing E-911 services. There are
Staff Report: Police Department Regionalization Efforts
December 3, 2012
Page3
currently ten Public Safety Answering Points (PSAPs) in Jefferson County, so the concept th at a
smaller number ofPSAP's could reduce costs is intriguing. The Police Department will be bringing
recommendations to City Council mid-year 20 13.
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Is sue
Memorandum
Mayor and Ci ty Council r\J
Patrick Goff, City ManageW
Steve Art, Economic Development Manager
December 3, 2012
Perrin's Row Tax Increment Financing Request
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Should the C ity ofWheat Ridge and Renewal Wheat Ridge (R WR) enter into negotiations to
provide Tax Increment Fil1anc ing (TTF) for the development of up to 28 townhomes at 5670 W . 38th
Avenue (Perri n 's Row) with Crosswire Investments , LLC (Crosswire)?
Proposed Project
Crosswire contemplates up to 35,000 sq. ft. of new construction. The 28 units will vary in size from
1166 sq. ft. to 1479 sq. ft. with each unit having its own garage and visi tor parking. The uni ts are
anticipated to sell in the low to mid $200,000 range. The fi rst units would be available fo r
occupancy in the second quarter of2013 with the finaJ uni t occupied some time in 2016.
These proposed townhomes, to be constructed by a merch ant builder, are modeled after the
successful Central Park Row Homes in Stapleton. The architecture includes a contemporary blend
of brick, stucco and s iding a long w ith prom inent architectural metal for decks and awnings. Th e
townhomes wi ll be built to Energy Star standar ds .
Background
The site for the future Perri n 's Row development has been vacant for over 14 -years and was
previously the location of a gas station. At some undeten nined time the gas station ceased
operations and in 1990 the underground fuel tanks were removed . Contamin ation was found in the
s oil which was remediated by ground pumping and open soil r emed iation and the sj te h as been
determined to be clean of contamination.
In 1999, an application was submitted for a 16 .25 foot variance to the 50 foot front yard setback
requiremen t that would allow for the construction of a 6 , 700 s q . ft. retai l bui lding containing a
la undromat and convenience s to re with gas sales and car wash. This variance request was denied
by the Board of Adjustment in January J 999.
Subs equent to the variance denial, the s ite plan was redesigned, and in No vember 2000 a pem1 it
was appro ved to a ll ow construction of a convenience s tore with gas pumps, laundry bu il ding and a
car wash, meeting the current C-I regu lations and commercial development standards. Construction
Study Session-Perrin's Row Memo
December 3, 2012
Page 2
did not commence within 60-days and therefore the permit expired.
In 2002 an application was submitted and appr oval was granted for the co nstruction of 12 row
homes and 8 condominium units. At that time the property was rezoned from C-1 and R-3 to
Planned Mixed Use Development and preliminary and final development plans and a plat wer e
approved. Due to market conditions, tllis project was not initiated and the permit expi red.
The site was rezoned to Mixed-Use Neighborhood (MU-N) as part of the City-initiated rezoning of
the 38th Avenue corridor, effective November 25,2012.
The parcel is located within the 38Lh A venue Corridor Urban Renewal Plan (The Plan) area. The
Plan has stated objectives which are to strengthen the identity of 38th Avenue as the City's "Main
Street; to promote mixed-use development that includes a balanced mix of residential> r etail and
service businesses; to improve pedestrian and vehi cular circu lation and safety; to minimize
pedestrian and vehicular conflicts; encourage retention and enhancement of existi ng businesses
while creating opportunities for new complimentary uses and; to encou ra ge new development and
redevelopment that is compatib le in scale and design with the exiting character of the
redevelopment area.
The Plan authorizes RWR to participate in redevetopment activities including demolition, public
improvements, land acquisition, redevelopment and rehabilitation and relocation. Completion of
these activities may be financed in whole or part by RWR using TIF.
Development Lncentive Package Request
At the November 6. 2012 RWR meeting, Richard Oneslager with Crossw ire, presented to RWR the
proposed Perrin's Row project and his justification for the TlF request. Mr. Oneslager provided the
followi ng items as barriers to an adequate internal rate of return (fRR) to make the project feasible:
I. Current City charter restri ctions do not allow for adequate densities to make the proj ect
financially viable.
2. TI1e site suffers from its adjacency to aging residential and retail.
3. The downturn in the national development market as well as the local market conditions in
Wheat Ridge.
4. The per square-foot value of p roperty in this part of the Denver metro area are $20 to $30
less than areas in West Highlands.
5. New Wheat Ridge development stand ards
Crossw ire provided initial ca lcu la tions and preliminary pro forma to staff that indi cated if the s ite
were to d evelop with 100% private fmancing, there would not be adequate return on the investment
to move forward with th is project. C rosswi re's project assw11p tions indicate the project funding at
approximately $1,154,000 and sales revenues of $1,225,000 for total project net revenue of just
over $71,000. B ased on these unsubstantiated assumpti on s, Perrin 's R ow wou ld generate an
unacceptable lRR of l. I%. Current projects today rel y on an IRR around 10% to be considered
acceptable by the developm ent community.
C rosswire has requested a TlF agreement with RWR that would rebate all or a portion of the
property tax increment generated by the construction of the proposed 28 townhomes for a period of
Study Session -Perrin's Row Memo
December 3, 2012
Page 3
20 years. The TTF would provide reimbursement of up to $414,333 in public improvements
identified by Crosswire. Presently, the property generates approximately $16,000 in annual property
tax. However. the Jefierson County Assessor's Office is considering a reassessment of the
va luation for tax years 201 0 and 2011 which would decrease the annual property tax to $6,500.
After the development of Perrin's Row, the estimated appraised value of$175 per sq. ft. would
yield an actual value of $6 , I 00,000 and generate an annual tax bill of $40 ,000 and an increment to
RWR of approximately $33.500 annually ($40,000-$6,500 = $33,500).
This project would be similar to the Wheat Ridge Cyclery project in 2009 which provided a TIF for
the redevelopment of the Cyclery 1n the amount of $264,180 or ten years, whichever occurs frrst.
That project also included a sales tax component that will not be included in thi s request.
Process Approval
R W R authorized staff to proceed wi lh an evaluation of the TIF request and to forward the request to
City Council for initial discussion and direction.
In order for Crosswire to receive TIF, City Council must review the request and provide
authorization for RWR to enter into an agreement with Crosswire providing TIF for the project.
Legal counsel has reviewed Lhe initial request application and determined the project's scope is
small enough that it will not require an amendment to the 381h Avenue Urban Renewal Plan.
If City Council were to consider approval of a TIF agreement with Crosswire, RWR would contract
with a third party to review the project pro forma that would provide the Council and RWR with the
financial implications aiding in the evaluation and recommendation for approval or denial of the
TIF request Staff would enter into negotiations with Crosswire for TIF and provide a funding
recommendation to Council and RWR for approval or denial.
Council Considerations
Consideration -Should the City Council provide authorization for staff to work with Crosswire for
the future consideration of a TIF agreement for the development ofPerrin's Row?
Staff recommends moving forward with an evaluation by a third party of the TlF request for the
following reason s :
1. The project meets the objectives oftbe 381b Avenue Corridor Urban Renewal Plan, the 38lh
A venue Subarea Plan, Envision Wheat Ridge by providing new residential options.
2. TI1e project could be a catalyst for the redevelopment of adjacent properties along the
corridor similar to the redevelopment of properties adjacent to the Wheat Ridge Cyclery TlF
project.
3. The project site has been vacant for 14 years. This project will aide in eliminating blight
along the 38111 Avenue corridor.
4 . The project will bring new residents to thi s area ofthe City potentially increasing local
commerce activity.
5. Significant barriers exist (density restrictions, market conditions, etc.) that impede this
project from completing.