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HomeMy WebLinkAbout04/18/2006AGENDA WHEAT RIDGE URBAN RENEWAL AUTHORITY April 18, 2006 Notice is hereby given of a Public Meeting to be held before the City of Wheat Ridge Urban Renewal Authority on Tuesday, Apri118, 2006, at 5:30 p.m., in the City Council Chambers of the Municipal Building at 7500 West 29th Avenue, Wheat Ridge, Colorado. 1. Call the Meeting to Order 2. Roll Call of Members 3. Approval of Minutes - March 21, 2006 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. Outside Agency Reports 6. New Business A. Update on 3718 Ames St. B. Discussion of Town Center IGA with City of Wheat Ridge C. Wheat Ridge Cyclery Reimbursement Agreement Executive Session under C.R.S. Section 24-6-402(4)(e) for the purpose of determining matters that may be subject to negotiations, developing strategy for negotiations and/or instructing negotiators regarding a reimbursement agreement for Wheat Ridge Cyclery. 8. Adjournment MINU'i'ES OF WHEAT RIDGE URBAN RENEWAL AUTHORITY March 21, 2006 5:30 p.m. 1. 2. 3. 4. 5. CALL THE MEETING TO ORDER The meeting of the Wheat Ridge Urban Renewal Authority was called to order by Chair Williams at 530 p.m. in the council chambers of the Municipal Building, 7500 West 29th Avenue, Wheat Ridge, Colorado. ROLL CALL OF MEMBERS Authority members present: 7ames Bahrenburg Dennis Boyat Teri Carver Terrell Williams Pete Ziemke Commissioners absent: Janet I.eo Dean Gokey Also attending: Alan White, WRURA Executive Director Ann Lazzeri, Recording Secretary APPROVAL OF MINUTES It was moved by James Bahrenburg and seconded by Dennis Boyat to approve the minutes of March 7, 2006 as presented. The motion passed unanimously. PUBLIC FORUM Charles Durbin 3703 Ames Street Mr. Durbin expressed concern about the new Big Lots store. The building has no gutters which presents a safety issue. Alan White will look into the situation. OLD BUSINESS • Chair Williams refened to the properties recently sold at 38t' and Depew. He reported that he tried unsuccessfully to contact the owner. 03-21-06 - 1 - • Teri Carver attended a meeting of the Wheat Ridge Business District as a representative of WRURA. She reported that the Business District is combining membership with Enterprise Wheat Ridge membership. Alan White reported that he was unsuccessful in locating the owner of the restaurant building which stopped construction after six months. He will continue to attempt to locate the owner in order to discuss possible WRURA assistance to complete the building. • Alan White and Terrell Williams will be meeting with a representative of Times Square shopping center on Mazch 22, 2006 to discuss the possibility of offering WRURA assistance in improving landscaping and pazking For the center. 6. NEW BUSINESS A. Review of Land Use Case - MS0602/Roach Building - A request for consolidation of two pazcels of land located in the Wadsworth Boulevard Corridor Redevelopment Plan azea. The owner is proposing an addition to the existing building.. Consolidation of the two lots simplifies building code requirements. It was moved by James Bahrenburg and seconded by Dennis Boyat that the Authority finds the request has no material effect on the Redevelopment Plan. The consolidation of parcels reduces the number of owners in the area and would be advantageous in the event land assemblage is pursued in the future for a redevelopment project. The motion passed unanimously. B. Case No. WA-06-03 - Advance Auto - A request to subdivide an existing pazcel into two lots; one lot would contain the Advance Auto Parts store currently under construction; the second lot would be used to build a two- family dwelling. The second ]ot is zoned C-1 and would need to be rezoned to allow residential uses. The owner was advised to combine the subdivision and rezoning requests, but has elected not to do so. It was moved by Pete Ziemke and seconded by Dennis Boyat that the Authority finds the subdivision increases the number of owners in the area and would not be advantageous in the event land assemblage is pursued in the future for a redevelopment project. Without rezoning, the subdivision creates a commercial lot of limited utility and is not in conformance with the 38t' Avenue Redevelopment Plan. The motion passed unanimously. C. MS-06-04 - Wheat Ridee CVCIerV - A request for consolidation of two parcels of land located in the 38 Avenue Corridor Redevelopment Plan area. The owner is proposing an addition to the existing building and consolidation of the lots simplifies building code requirements. 03-21-06 - 2 - It was moved by Pete Ziemke and seconded by James Bahrenburg to adjourn the meeting at 6:55 p.m. The motion passed unanimously. Terrell R. Williams, Chair Ann Lazzeri, Secretary 03-21-06 - 4 Wheat Ridge Urban Renewal Authority 7500 W. 29th Avenue Wheat Ridge, Colorado 80033 303295-2846 303295-2857 (Fax) TO: Urban Renewal Authority Board Members FROM: Alan White, Executive Director " RE: 3718 Ames DATE: April 13, 2006 Terrell and I met with representatives of the Wheat Ridge Housing Authority to discuss a joint venture project for the house WRURA owns at 3718 Ames. The concept was for the Housing Authority to fund remodeling of the struchue, which could then be sold. Details of the arrangement would need to be set out in an Intergovernmental Agreement. The house was purchased by WRLTRt1 for slightly under $200,000. We could not sell it for that today as we let the previous owner remove the kitchen cabinets and the oid asbestos-laden furnace would need to be replaced. The Housing Authority is obtaining estimates for the cost of remodeling. Bottom line for WRURA is that it would probably be sold at a loss. The Walgreens developers filed a lis pendens against the property, which creates a cloud on the title. We contacted a title company to see if that encumbrance could be insured and we were told no. No title company will issue title insurance for a property which has been made a subj ect of pending litigation. Our attomey has contacted the developer's attomey and their client will not agree to release the lis pendens. Wheat Ridge Urban Renewal Authority 7500 W.29th Avenue WheatRidgg Colondo 80033 303235-2846 303235-2857 (Fax) TO: Urban Renewal Authority Boazd Members FROM: Alan White, Executive Director ~Qkw RE: Town Center Intergovemmental Agreement with City DATE: April 13, 2006 A series of Intergovernmental Agreements (IGA) between WRURA and the City have been approved since 1995. Many of the provisionsof these IGA's aze in conflict. On Apri17, 2005, I met with the City Attorney, Deputy City Manager, and Corey Hoffinan to discuss resolving the conflicts. We decided to create one new IGA that superseded all previous IGA's and addressed all issues (from rennbursing the City to sales tax increment payments out of Town Center). As for the Town Center sales tax increment, we agreed to propose in the IGA to continue imposing the increment, but reverting to the intent of one of the previous IGA's which we believe was to pay WRURA 50% of the increment generated by the Safeway project (subtracting the base amount from the old Safeway store for the period November 1, 1944 to October 31, 1995), up to an annual payment of $100,000. The City Attorney believes this provision is still in effect and that is why we have only received $100,000 this year instead of the actual $264,000. This is the only source of operating revenue for WRi.7RA and this will be a policy decision of Council whether to continue the payment and thus keep WRLTRA in business. We thought we should have a joint meeting with Council and possibly the WR2020 Boazd and Director to discuss WRiJRA's role in light of WR2020 and if, as the WRLTRA Board has discussed, we should be looking at creating other urban renewal areas in the City. You remember from my discussion of the financial status of WRiJRA that in order for us to pay our bills without the Court's continued permission, we agreed to deposit in the Walgreens Escrow fund an additional $200,000 because the developer would not aclmowledge the purchase of 3718 Ames as our contribution of $225,000 to the project. ] deposited $100,000 ofthis into the account last year. We won't have enough this year without the City's help. The City proposed that they loan the WRi JRA the $100,000, without interest, to be "paid back" in five years. The pay back would take the form of reducing the Town Center Sales tax increment to $80,000 for the next five yeazs. The City Attorney will be drafting the new IGA and it will be brought to you for consideration. Wheat Ridge Urban Renewal Authority 7500 W. 29th Avenue Wheat Ridge, Colando 80033 303235-2846 3037352857 (Fax) TO: Urban Renewal Authority Board Members FROM: Alan White, Executive Directar ~'t~t1► `y~N" RE: Wheat Ridge Cyclery Reimbursement Agreement DATE: April 14, 2006 Attached are a draft reimbursement agreement for Wheat Ridge Cyclery (WRC) and a memorandum from our attorney conceming the Agreement. The memorandum points out the latitude and restrictions we have in reimbursing WRC for any costs of improvements. The proposal is to reimburse WRC for certain improvements encountered in their expansion and rehabilitation endeavor. We would be establishing both a sales and property taac increment for the property and WRC would be reimbursed on an annual basis. We would need to amend the Urban Renewal Plan to establish the use of the tax increments. Issues to consider are the improvements to reimburse, the total cost of the reimbursement, and the length (number of years) of the reimbursement period. I am requesting an executive session on this matter so that the Board can instruct me on how you wish to proceed. Formal direction would need to be given once we adjoum from executive session. HAYES, PHILLIPS, HOFFMANN & CARBERRY, P.C. 1350 Seventeenth Street, Suite 450 Denver, Colorado 80202-1576 Telephone: (303) 825-6444 Facsimile: (303) 825-1269 John E. Hayes Corey Y. Hoffinann Kendra L. Carberry Fairplay Office 675 Main Street P.O. Box 1046 Fairplay, CO 80440 Telephone:(719) 836-9005 Facsimile: (719) 836-9010 Hilary Mogue Graham Jefferson H. Parker Peter F. Waltz Gregory D. Graham Of Counsel Herbert C. Phillips WHEAT RIDGE URBAN RENEWAL AUTHORITY MEMORANDUM TO: FROM: DATE: RE: BOARD OF DIRECTORS ALAN WHITE, EXECUTIVE DIRECTOR COREY Y. HOFFMANN ESQf,I{l JEFF PARKER, ESQ. Q~S`~4 d APRIL 7, 2006 REIMBURSEMENT AGREEMENT WITH WHEAT RIDGE CYCLERY This memorandum addresses the terms of the agreement entered into between the Wheat Ridge Cyclery ("Cyclery") and the Wheat Ridge Urban Renewal Authority ("WRURA"). An urban renewal authority has the general power to enter into agreements and expend funds for the redevelopment or rehabilitation of property within an urban renewal area. See C.R.S. 31-25-105(1)(b), (c), and (g). The provisions of the Urban Renewal Law do not, however, expressiy specify the exact nature of permissible expenditures. Therefore, we must look to the general purpose of Colorado's Urban Renewal law to ascertain what types of expenditures are allowed. An urban renewal authority only has the authority to take action aimed at eliminating and preventing the spread of blight. See, e.g., City & Counry of Denver v. Block 173 Assocs., 814 P.2d 894 (Colo. 1991) (where purpose behind urban renewal authority condemnation is anything other than elimination or prevention of blight, the authority lacks authority to condemn). Further, the essential purpose of any action taken by an urban renewal authority must be to obtain a public benefit, rather than to advance a private interest. See e.g., Denver West Metropolitan Dist v. Geudner, 786 P.2d 434, 436 (Colo. App. 1989) (in condemnation context); see also, Rabinoff v. District Court, 360 P.2d 114, 118-19 (Colo. 1961) (chief purpose of Urban 417106 Q: I USERSIWRURAVHPICYCLERYAGREEMENT_M07.DOC Apri17, 2006 Page 2 Renewal Law is to eliminate slum and blighted azeas, and acquisition and transfer of private property is an incidental act). The primazy public purpose must be kept in mind when reviewing for which expenses WRURA may reimburse the Cyclery. Because we aze dealing with such a general urban renewal purpose, it is difficult to reach precise conclusions regazding which projects aze subject to reimbursement. The more the project benefits the public, the stronger an argument can be made for its permissibility. The more the projecYs benefits accrue primazily to the Cyclery, the less easily WRURA's financial assistance can be justified. A legitimate argument could be made that all of the listed expendihues benefit the publiq because they improve the appeazance of the Cyclery, creating an attractive anchor business, which draws customers to the azea, encourages businesses to remain and attracts new business to the azea. Thus, if WRURA had a strong desire to pay all of the listed expenses, an azgument could be made to justify such payments. Nevertheless, there aze a few expenses that are less justifiable than others, because their benefits aze less public in nature. These aze (1) the expensive curved metal roof system; and (2) the store front system of lazger glass windows, a shading system and automatic doors. These appeaz to be more in the nature of upgrades that primarily benefit the Cyclery, whereas the other projects seem to be more public in nature. Ensuring that a business has a suitable roof directly eliminates a condition of blight, which is the deterioration of structures. However, the less expensive membrane roof will likely remedy any deterioration of the Cyclery's roo£ Although WRURA could likely justify the standard membrane roof, it may be difficult for WRURA to justify paying an extra $81,000 for an ornamental roo£ Likewise, it may be difficult to justify the payment of $76,800 for lazger glass windows, a shading system and automatic doors. The other projects have a greater public unpact. Undergrounding power lines directly impacts public views. Large azea store facades aze highly visible to public. Sidewalks and walkways are used by the publia Curbs and gutters provide direct public benefits. These should be more easily justified. We have attached a draft agreement to this memorandum addressing WRiJRA's and the Cyclery's obligations. References aze made to a number of exhibits, which need to be completed before signing. Currently, the projects the Cyclery has listed aze not detailed enough for WRURA to enforce. We recommend that once the exact nature of the projects is better known, more detailed specifications are listed as attached exhibits. As always, if you have any questions or concems, please feel free to contact us anytime. 4/7/06 Q:IUSERSIWRURAVHPICYCLERYAGREEMENT MOI.DOC WHEAT RIDGE URBAN RENEWAL AUTHORITY IMPROVEMENTSAGREEMENT THIS AGREEMENT is made and entered into this day of , 2006, by and between the Wheat Ridge Urban Renewal Authority ("WRURA"), and the Wheat Ridge Cyclery, with a business address of 7085 West 38h Avenue, Wheat Ridge, CO 80033 (the "Cyclery") (collectively referred to herein as the "Parties"). WHEREAS, WRLJRA is authorized under the provisions of Colorado's Urban Renewal Law, C.R.S. § 31-25-101, et seq., to enter into agreements and provide financial incentives for the redevelopment of property to eliminate blight; WHEREAS, such redevelopment may be made and encouraged by granting financial assistance to persons who reside within WRURA boundazies, to businesses within the WRURA boundaries, and to owners of property within WRURA boundazies; WHEREAS, the Cyclery owns a business located at 7085 West 38`h Avenue, Wheat Ridge, CO 80033 (the "Property"), which is within the WRURA boundazies, and which provides an important economic base for the City of Wheat Ridge; and WHEREAS, WRURA desires to assist the Cyclery in making a number of improvements to the Property, which shall improve the public appeazance of the Property, remedy its deterioration, maintain a positive business environment in the neighborhood, and serve as an anchor to attract other desirable businesses to the neighborhood. NOW, THEREFORE, in order to promote redevelopment and eliminate blight within the WRURA boundaries, and in consideration of the promises herein contained, the Parties hereby agree as follows: 1. Financial Incentive. WRURA shall provide the following financial incentives to the Cyclery, and the Cyclery shall undertake the following work on the Property: a. Masonrv. The Cyclery shall undertake and WRURA shall reimburse the Cyclery for up to $92,600 in masonry work azound the Property, which shall meet the specifications set forth in Exhibit A to this Agreement. b. Utilities. The Cyclery shall undertake and WRURA shall reimburse the Cyclery for up to $9,100 to upgrade its power system to a 3-phase system and to underground the power line across High Court, which shall meet the specifications set forth in Exhibit B to this Agreement. c. Roof System. The Cyclery shall undertake and WRURA shall reimburse the Cyclery for up to $33,000 in roof repairs to install a flat membrane roof, which shall meet the specifications set forth in Exhibit C to this Agreement. 04/07/06 Q: I USERSIYVRURAIImprovementAgreement_Cyclery. doc d. Paving Stone/Hazdscape. The Cyclery shall undertake and WRLJRA shall reimburse the Cyclery for up to $ to install pave stone or stamped concrete along the new store front on High Court, which shall meet the specifications set forth in Eghibit D to this Agreement. e. Curb and Gutters. The Cyclery shall undertake and WRURA shall reimburse the Cyclery for up to $7,300 to install 220 lineal feet of curb and gutter along High Court, which shall meet the specifications set forth in Exhibit E to this Agreement. 2. Commencement Date. All specified 'unprovements must be commenced no later than , 2006 and completed to no later than , 200_. If these deadlines aze not met, WRURA shall have the option, at its sole discretion, to not reimburse the Cyclery for the associated 'unprovement. 3. Inspection. The Cyclery agrees to permit officials or representatives from WRLJRA to inspect the Property at any reasonable time to determine whether the specified improvements have been commenced or completed, and to determine whether such improvements meet the requirements set forth in this Agreement. 4. Compliance with law. In carrying out its obligations under this Agreement, the Cyclery agrees to comply with all applicable laws, including the City of Wheat Ridge ordinances and building codes. 5. Limitation of Liability. IN NO EVENT WILL WRURA BE LIABLE FOR ANY CONSEQUENTIAL, INDIRECT, EXEMPLARY, SPECIAL OR INCIDENTIAL DAMAGES, INCLUDING ANY LOST PROFITS, ARISING FROM OR RELATING TO THIS AGREEMENT. WRURA'S TOTAL CUMULATIVE LIABILITY IN CONNECTION WITH THIS AGREEMENT WHETHER IN CONTRACT OR TORT OR OTHERWISE, SHALL NOT EXCEED THE AMOUNT AGREED TO BE PAID TO THE CYCLERY HEREUNDER. BOTH PARTIES ACKNOWLEDGE THAT THE FEES REFLECT THE ALLOCATION OF RISK SET FORTH IN THIS AGREEMENT AND THAT NEITHER PARTY WOULD ENTER INTO THIS AGREEMENT WITHOUT THESE LIMITATIONS ON THEIR LIABILITY. 6. Miscellaneous. a. Governing Law and Venue. This Agreement shall be governed by the laws of the State of Colorado, and any legal action concerning the provisions hereof shall be brought in Jefferson County District Court. b. No Waiver. Delays in enforcement or the waiver of any one or more defaults or breaches of this Agreement by the WRURA shall not constitute a waiver of any of the other terms or obligation of this Agreement. C. InteQration. This Agreement and any attached exlubits constihzte the entire Agreement between the Cyclery and WRURA, superseding all prior oral or written communications. 04/07/06 Q:IUSERSIWRURAIImprovementAgreement Cyclery.doc d. Third Parties. There aze no intended third-party beneficiazies to this Agreement. None of the professionals, contractors, or subcontractors hired by the Cyclery shall be intended third-party beneficiazies of this Agreement. e. Notice. Any notice under this Agreement shall be in writing, and shall be deemed sufficient when directly presented or sent pre-paid, first class United States Mail, addressed to: WURA: Alan White, Executive Director Wheat Ridge Urban Renewal Autharity 7500 W. 29th Avenue Wheat Ridge, CO 80033 With a copy to: Cyclery: Corey Hoffmann Hayes, Philiips, Hoffinann & Cazberry, PC Suite 450, The Mazket Center 1350 17' Street Denver, CO 80202-1576 7085 West 38th Avenue Wheat Ridge, CO 80033 £ Severabilitv. If any provision of this Agreement is found by a court of competent jurisdiction to be unlawful or unenforceable for any reason, the remaining provisions hereof shall remain in full force and effect. g. Modification. This Agreement may only be modified upon written agreement of the Parties. h. Assignment. Neither this Agreement nor any of the rights or obligations of the Cyclery shall be assigned by the Cyclery without the written consent of WRURA. i. Govemmental Immunitv. WRURA, its officers, and its employees, aze relying on, and do not waive or intend to waive by any provision of this Agreement, the monetary limitations (presently one hundred fifty thousand dollazs ($I50,000) per person and six hundred thousand dollars ($600,000) per occurrence) or any other rights, immunities, and protections provided by the Colorado Governmental Immunity Act, C.R.S. § 24-10-101, et seq., as amended, or otherwise available to WRURA and its officers or employees. j. Rights and Remedies. The rights and remedies of WRiJRA under this Agreement are in addition to any other rights and remedies provided by law. The expiration of this Agreement shall in no way limit WRURA's legal or equitable remedies, or the period in which such remedies may be asserted, for work negligently or defectively performed. 04/07/06 Q: I USERSI4VRURAIImprovementAgreement_Cyclery. doc IN VJITNESS WHEREOF, the Parties hereto have executed this Agreement on the date first set forth above. WHEAT RIDGE URBAN RENEWAL AUTHORITY WHEAT RIDGE CYCLERY By: STATE OF COLORADO ) ) ss. COUNTY OF ) The foregoing instnunent was subscribed, sworn to and acknowledged before me this _ day of , 2006, by , as of the Wheat Ridge Cyclery. My commission expires: (SEAL) Notazy Public 04/07/06 Q:IUSERSIWRUR.4llmprovementAgreement Cyclery.doc EXHIBIT A MASONRY WORK SPECIFICATIONS 04/07/06 Q: I USERSI WRURAIImprovementAgreement_Cyclery. dac EXHIBIT B UTILITY WORK SPECIFICATIONS 04/07/06 Q:IUSERSIWRURAIImprovementAgreement Cyclery.doc EXHIBIT C ROOF SYSTEM SPECIFICATIONS 04/07/06 Q: I USERSIYVR URAIImprovementAgreement_Cyclery. doc EXHIBIT D PAVING STONE/HARDSCAPE SPECIFICATIONS 04/07/06 Q: I USERSI WRURAIImprovementAgreement_Cyclery. doc EXHIBIT E CURB AND GUTTER SPECIFICATIONS 04/07/06 Q: I USERSI WRURAIImprovementAgreement_Cyclery. doc