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Home My WebLink About09/06/2005AGENDA WHEAT RIDGE URBAN RENEWAL AUTHORITY September 6, 2005 Notice is hereby given of a Public Meeting to be held before the City :of Wheat Ridge Urban Renewai Authority on Tuesday, September 6, 2005, at $: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 - August 2, 2005 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. Executive Session under C.R.S. Section 24-6-402(4)(b) for the purpose of receiving legal advice regarding specific legal questions regarding the terminated 38t' Avenue and Sheridan Boulevard redevelopment project. 6. Adjournment MINUTES OF WHEAT RIDGE URBAN RENEWAL AUTHORITY August 2, 2005 5:30 p.m. L CALL THE MEETING TO ORDER The meeting of the Wheat Ridge Urban Renewal Authority was called to order by Chair Williams at 5:30 p.m. in the council chambers of the Municipal Building, 7500 West 29th Avenue, Wheat Ridge, Colorado. 2. ROLL CALL OF MEMBERS Authority members present: Janet Leo Ralph Mancinelli Terrell Williams Authority members absent: Pete Ziemke Also attending: Alan VJhite, WRIJRA Executive Director Corey Hoffmann, WRURA Attorney Ann Lazzeri, Recording Secretazy Vern and Mazge Vohaska Tom Little Russell Baker 3. APPROVAL OF MINUTES It was moved by Janet Leo and seconded by Ralph Mancinelli to approve the minutes of June 21, 2005 as presented. The motion passed unanimously. 4. PUBLIC FORUM . Chazles Durbin asked for an update on the Cornerstone lawsuit. Corey Hoffinann reported that a brief was filed on July 25 and Cornerstone has two weeks to respond. He. anticipated a final solution in approximately 6 months. Chair Williams commented that bills aze being paid as funds aze released by the court. 5. - DISCUSSION OF 44`h AND WADSWORTH The following individuals joined the Authority to discuss possibilities for a cooperative effort between property owners and the city for future redevelopment of the azea at 44`h and Wadsworth: Mazge and Vern Vohaska (owners of 3.20 WRURA Minutes Yage I 08-02-OS acres known as the "Spartan pad"); Tom Little (Vern's Restaurant and Lounge); and Russell Baker (Fuller & Company). At the request of Chair Williams, Alan White stated that the owner of Time Squaze has indicated he plans a"facelift" for the center including a new tenant. Mr. White also presented a brief overview of the recently completed Neighborhood Revitalization Study. The study suggested that the 44~' and . Wadsworth azea showed a great possibility for redevelopment and possible establishment as the Wheat Ridge town center. The study aiso suggested the formation of a nonprofit organization that could purchase properties for redevelopment. Ra1ph Mancinelli commented that it is important for city council, planning commission and staff to be in alignment to assist property owners in redevelopment efforts. Mr. and Mrs. Vohaska indicated they were willing to work with the city for possible redevelopment of the 44'1' and Wadsworth azea. Mr. Vohaska also commented that recent significant tax increases in the area are important considerations for property owners. Mr. Baker stated that he represents clients who are very interested locating to the the 44`h and Wadswor[h azea. Mr. Little commented that he was highly in favor of the "town center" concept for the area. Chair Williams expressed the Authority's appreciation to those who participated in the joint discussion. 6. EXECUTIVE SESSION It was moved by Ralph Mancinelli and seconded by Janet Leo that the Wheat Ridge Urban Renewal Authority enter into an executive session on August 2, 2005, under CRS Section 24-6-402(4)(b) for the purpose of receiving legal advice regarding specific legal questions regarding the terminated 38`n Avenue and Sheridan Boulevard redevelopment project. The motion passed unanimously. The regulaz meering was adjoumed to executive session at 630 p.m. The executive session was convened in the lobby conference room at 6:34 p.m. Those attending the executive session were: Janet Leo, Ralph Mancinelli, Terrell Williams, Corey Hoffinann, Alan White, and Ann Lazzeri. WRURA Minutes Page 2 08-02-OS 8. ADJOURNMENT The executive session and the regulaz meeting were adjourned at 7:00 pm. Terrell Williams, Chair Ann Lazzeri, Secrefary WRiJRA Minutes 08-02-OS Yage .s Wheat Ridge Urban Renewal Au-thority 7500 W.29th Avenve Wheatliidge, Colorado 80033 303235-2846 3932352857 (Fax) TO: Urban Renewal Authority Boazd Members FROM: Alan White, Executive Director A RE: Settlement Request DATE: August 31, 2005 Attached is the documentation provided by the attorney for the former owners of 5280 W. 38b Avenue (the former Kitchen Masters location). An exeCUtive session has been scheduled to discuss how you want to proceed. The executive session will also include legal advice concerning the judge's latest order which is also attached. pUG-25-05 07:19AM FROM-Hayes Phillips, Hoffmann 8 Carbarry, PC +3038251269 T-446 P.002/004 F-682 DISTRICT COURT, " JEFFERSON COUN'fY, COLORADO 1 S` Judicial District CourC Jefferson Counry Court 8c Adminisirative Faciliry 100 Jeffenon County Pazkway Golden, CO 80401-6002 ♦COURT USE ONLY♦ plaintiff(s): Case No. 04CV3513 TBE CORNERSTONE GROUP ?C7CTT, L.L.C. Division 6, Couriroom 5-B befendant(s): WHEAT RIDGE URBAN RENEWAL ALJ'I'HORITY, and TBE CTTY OF WHEAT RIDGE, COLORADO, a body politic ORDER Comerswne moves to hold the Wheat Ridge Urban Renewai Aushoriry in contempt for disobeying ihis Court's order of December 30, 2004 regar4ling what funds must be escrowed and what funds may be spent. WRURA responds that it is complianee with boTh thc letter and spirit of the order. Both sides appeaz to be trying to re-write the order to their own benefit. Comerstone contends that the Court ordered that WR[JRA preserve the Ames property, worth $225,000, plus $200,000 for four years, for a total of $1,025,000. WRURA contends that the Court only intended that future ineremenu of the $200,000 annual tax receipts must be escrowed, and that the Court did not order W1tURA to "Yeplenish" any of the $200,000 annual inerements that were spent before the Court's ol'der. Neither of these interpretations is what the Court had in mind. The Court found that WRUTtA had committed $800,000 in "TiF" revenues ($200,000 times four) to the project, and that the remainder of thc TIF collections, estimaced to be in the ' range of $230,000 to $255,000 per yeaz, could be used for operating expenses or other projects. December 30, 2004 Order at 3. The Court's intent was, and is, that WRURA could spend money on attorneys and orher operating costs only to the extent it could do so without compmmisine its Commiunent of $200,000 per year for the four years, so that in the end, if a damages awazd were made to Cornerstone, there would be at ]east $800,000 plus accumulated interest escrowed for that purpose. That is the meoning of the sentence, "The Court's intent is that, absent very good cause shown, the only funds dispersible to pay operating expenses, settlement expenses, ~S~'is Fnr`~s 4 8559123 F SEAV~~~ Aup 24 2005, 326PM AUG-25-05 OT:19AM PROM-Hayes Phillips, Hcffmann & Carbarry, PC +3038251269 T-446 P.003/004 F-682 attorney's fees, or othenvise, will be such T]F Funds as might be received in excess of rhe $200,000 annually that was dedicated to this project " The only significance of the Ames property is that it represented an invesnnenc of WRUSA funds in the range of $206,000 according to the Coutt's findings, but that while W1tUSA had listed the propetty for sale at $210,000, it was enter[aining an ofFer to purchase it for $100,000. December 30, 2004 Order az 8. The Court ordered that this property could not be sold for less than its appr3ised value, and that if et were sold, the proceeds net of closing cosu must be escrowed pending further order. T'fiis order was made to prnvide some assurance that WRUSA would have the ability to honor the eommitment of $200,000 per year times four. The size of the bond ocdered by the Court likewise reIlecu the Coun's wish to secure WR.USA's ability to comply with the Court's order, i.e., on top of the fiinds that the Court believed WRUSA either had on hand in cash or propErty plus collections that the Coun believed would be made. The Court did not intend unreasonably to hamsting VJRUSA. The Court undcrswod that WRUSA would have some operating costs and that its lawyers would tike co be paid for sheir ongoing work on this case. However, the Court was satisfied that WRUSA could pay its teasonable operating costs out of eithet'I'IF funds generated in excess of $200,000 per year or other sources. The record of WRUSA's spending coupled wiih the Ciry of Wheat Ridge's refusal to guazantee WRUSA's commitmenu convinced the Court that WRUSA could depiete its assets and mfilce itself judgment-prooFvis-i-vis Cornerstone if given the chance. $ecause the pazties aTe unable or unwilling to come so an agreement on this, che Cour[ orders, in aid of its existing injuaction order, that all WRURA funds are hereby frozen unYi] thc parties can schedule and hold an evidentiary hearing. The Court will not entertain further piecemeal requests for authorization to spend funds until suah a heFU'ing is conducted. The Court will want testimony supported by documentation accounting for al1 funds spent by WRURA on fhis project, whether generated by tax revenues or otherwise. The Court will chen determine what needs to be replenished, if anyrhing; what must be escrowed; and what can be spent on attomeys or otherwise. The Cout[ requests that counsei refrain in firture filings from usingsuch expressions as "insists on wasting lhe Yune and tesources of the Court and the Authority," "insists on misleading the Court," "aitempt to mislead the Court," and similar expressions. IL is fine to have sharp disagreemenu with the opposing party, but even the most hotly disputed cases can be litigated with civiliry. ThC CAw[ furthe[ notif es the parties that it construes the term "confer" in C.R.C.P. 121 § 1-15(8) to mean to talk with opposing counsel, either in person or hy telephone. Exchanging correspondence does not comp[y. Dated in Golden, Colorado this 24_ day of_August , 2005 BY TFE COURT: 2 AUG-25-05 07.19AM FROM-Heyes Phillips, Hoffmann 8 Carbarry, PC +3038251269 T-446 P.DU4/004 F-682 R. BROOKE JACKSON District Court Judge CE, RTTFICATE OF SEIiVICE I hereby cettify thaz on the 24_ day of _August , 2005. I served a uve and accarate copy of the fotegoing docament via the method indicated: ROBERT T. HOSAN 1430 WYNKOOP, SUITE 300 DEN'VER, CO 80202 ( ) F'vst Class Mail ( ) Facsimile (x) Via Justice Link S7E'VEN J. DAWES 1312 LAR1METt ST, SUI1'E 550 DENvER, CO 80202 CO1tEY Y. HOFFMAN 135017TH ST., SUITE 450 DENY6R, CO 80202 MALCOLM L. MURRAY 1515 ARAPAHOE ST., TR. 1, 91000 DENVER, CO 80202 ( ) Firs[ Class Mail { ) Facsimile (x) Via Justice Link ( } First Class Mail ( ) Facsimile (x) Via Justice Link ( ) Pirst Class Mail ( ) Facsimile (x)Via Justice Link /s/ Mary DeRosa Division Clerk 3