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Home My WebLink About01/14/2002AGENDA' CITY OF WHEAT RIDGE URBAN RENEWAL AUTHORITY , Monday, January 14, 2002 5:30 p.m. Notice is hereby given of a Special Meeting to be held by the City of Wheat Ridge Urban Renewal Authority on 7anuary 14, 2002, at 5:30 p.m., in the second floor conference room on the Municipal Building at 7500 West 29`h Avenue, Wheat Ridge, Colorado. 1. Call meeting to Order 2. Roll Call ofMembers 3. Approval of Minutes - December 17, 2001 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 Agenda For a conference with the Board Attorney (or special counsel, as the case may be) for the purpose of receiving legal advice on specific legal question under C.R.S. Section 24-6-402(4)(b); Related to contracts for acquisition of property in the 44`h/Ward and 38`h/Sheridan re-development areas. For the purpose of determining positions relative to matters that may be subject to negotiations, developing strategy for negotiations, and/or instructing negotiators under C.R.S. Section 24-6-402(4)(e). Related to re-development at 40/Ward, 38t'/Sheridan and 44t'/Wadsworth. 6. New Business Ridge Shopping Center ' 7. Old Businesses 8. Adjournment. NIINUTESOF WHEAT RIDGE URBAN RENEWAL AUTHORITY December 17, 2001 5:30 p.m. 1. CALL THE MEETING TO ORDER The Wheat Ridge Urban Renewal Authority meeting was called to order by Chair Matthews at 530 p.m The meeting was heid in the second floor conference room of the Municipal Building, 7500 West 29th Avenue, Wheat Ridge, Colorado. Chair Matthews announced a change in the order of the agenda to hold the executive sessions prior to new business. 2. ROLL CALL OF MEMBERS Norm Burkpile Sandra Collins Vance Edwazds Jim Goddard Elwyn Kiplinger Janet Leo (arrived at 6:00 p.m.) Dick Matthews Kandi McKay Commissioners absent: John Hall Margy Platter Also attending: Alan White, Plamiiug Director Jim Windholz, Urban Renewal Attorney Marilynn Force, Economic Development Director Arnie Ray, Szymanski Ray Steve Szymanski, Szymanski Ray Jeff Bailey, The Cornerstone Group I, Inc. David Schneider, City Council Representative - District III (arrived at 6:12 p.m.) Ann Lazzeri, Secretary 3. APPROVAL OF MINUTES The minutes of the regular meeting of Novembar 27, 2001 were presented for considerarion. It was moved by Norm Burkpile and seconded by Sandra Collins to approve the minutes of November 27, 2001 as presented. The motion passed unanimously. 4. PUBLIC FORUM There were none present to address the AuthoriTy. WRURA Minutes Page 1 12-17-O1 5. EXECUTIVE SESSION It was moved by Vance Edwards and seconded by Sandra Collins to enter into executive session under C.R.S. 24-6-402(4)(a) and (e) for the purpose of developing negotiation strategies for the potential redevelopment and/or acquisition of properties in the 38tn Avenue Corridor, Wadsworth Boulevard Corridor and 44th Avenue/Ward Road Redevelopment Areas and instructing negotiators, consultants and attorneys. The motion passed unanimously. It was moved by Vance Edwards and seconded by Norm Burkpile to also enter into executive session under C.R.S. 24-6-402(4)(a) and (e) for the purpose of receiving legal advice. The motion passed unanimously. The regulaz meeting was adjoumed to executive session at 535 pm. All individuals listed as present at the beginning of the minutes were present for the executive session. The executive session was adjourned to the regular meeting at 6:55 p.m. 6. NEW BUSINESS A. Amendment to Agreement with Szymanski/Ra.y Alan White presented an amendment to the agreement with Szymanski/Ray (contained in the staff report) to continue to provide development consultation services to the Authority. It was moved by Norm Burkpile and seconded by Sandra Collins to amend the agreement with Szymanki/Ray to continue to provide consultation services to the Authority in an amount not to exceed $28,000. The motion passed unanimously. B. Contract with Art Anderson to undertake a blight study Alan White presented a proposal from Arthur L. Anderson and Associates (contained in the staff report) to conduct a blight survey for the azea of 3915 Upham to 4281 Upham including the adjacent right-of-way of Upham Street. It was moved by Sandra Colliris and seconded by Jim Goddard to approve a contract with Arthur L. Anderson and Associates to conduct a blight survey for the area of 3915 Upham to 4281 Upham including the adjacent right-of-way of Upham Street. The motion passed unanimously. WRURA Minutes Page 2 12-17-01 WALMART BEST GUESS PROJECTIONS FROM SZYMANSKI & RAY Based on numbers provided by Goldberg Properties ~ ,AT!-lU J'l F6I 6:14 Pn4 SZYMAPdS~i/RAY SZxN,L4NSKI I.RAY FAX PIO, 303 535 8810 P. 1/ 2 T0: Marilyn Force, City of \Vheat Ridge - Fax: 303-200-9701 Jim Windholz-Pax: 303-443-7835 FROM. ArneRay-Pax:303-595-8810 Steve Szymanski - .Var.: 303-595-8810 SUQ7.- 44th & Ward 17fITE: Januaty 10, 2002 v:303-595-4422 v:303-595-3311 Enclosed is our lst cut public (i.e. City 1 WRRA) pro-forma forthe 44th & Ward project. This is based primarity on the Goldberg numbers, with a few exceptions: - We have added a 15% contuigency because of the early basis for cost estimates, especial(y for land acquisition, relocation, remedintion and demolition. . - We have increased ihe cost recoveiy fromCpOT to include the ROW acquisition wsts. - We have continued to include a 1% PIF in addition to the 2% sales taxes. Based on these nwnbers, it appears that virtually all of the sales taXes and PIF would be required to service tha $20 million in public debt over a 20-year iepayment. There ivouGd be rriinimal revenues availab(e for the City to recover its currezat $892,000 in annual sales taxes frpna tlze Wal-N(art at Apptewood Village SC. We want to emphasize that these esEimates are very preliminary and that we have noi had the opportunity to independeaitly review of verify the various cost estimatas. Please get any cotnments or questions to us and let us luzow Uow we cwt be of assistance. 901 Rcroma Str¢et • Denv¢n Codorpdo 80204-4013 • Fax: (303) 595-8810 Arnold Ray (303) 595-4422 • Steve Szysnamski (303) 595-3311 .AN-IU-fJl FR] 6::5 'h9 SZYN:AKSK]/ER`( FhX N0, 3G3 595 8810 P. 2/ 2 City of Wheat Ridge to-dan-oz Ealimated Public Cost for the 44lh 8. Ward Project Szymanskl I Ray PUblic Cosls Land Acquisition a) " 23.80 acres@ $14.00 $14,514192 ROW Acquisition 2.59 . ecres Q $14.00 ' $1,579,486 Relocation . Remeiliation & Demolltion - 5650,000 On-Site Costs b) . $5,345,063 Ramp Engineering c) . $7.395,000 Ramp Construction ' $5.558.700 Interest Cdfry lo Ciry on Ramp ConsWction (vs. CDbT reim6ursement) $785,200 Off-sile (lraffic signap d) $150,000 condemnation Costs ~ $1,o0o,000 Sub-TOtal $30,977,641 Contingency@ $4,646,848 Total Estimated Cost Basis e) $35,624,287 Cost Recnvery CDOT Reimbursement Q g) $8,533,186 Parcel resale to developer 23.80 acres @ $7,00 - $7.257,096 Total Estimated Cost Recovery $15,780,282 - Net Pubiic Cost "GAP" h) 419,834,005 ESlimated Annual Uebt Service Total Bond Issue Q 2.50°k Cost of Issue -$20,342,569 Annual Debt Sarvice @ 8.00% @ 20 Years -$2,071,936 PotenUalSales 7ax Revenues . Wal-Mart - Texable Sales 220.000 9F @$341 Taxable Sales per SF $75,020,000 Mnual Sales 7ax Revenues @ 2,00yo $1,500400 Public Irnprovement Fee @ . 1.00~/0 $750,200 7olalPotentialMnualSalesTaxRevenue;+PIF . - ~ $2,250,600 ~ (note; total salas tax revenue + pIF, NOT Ihe incremental seles tax revenues) . Coverege o( Sales Tazas + pIp vs. Annual Debl Service 1.09 Noles: ' a) Need to 2view the estimated acquisition, relocation and remediation I demolilion msls b) Need lo c18rily lhe "on-site costs". Wnat are they? Should this be a City or developer cost? . c) Neetl lo review CDOT's COSI basis. timing oFconslruction vs. CDO7 reimbursement and inle2st carry. . d) Should the traffic signal be a Ciry or tleveloper cost? . e) Who carnes the cost risk For additional crosfs 6eyond 6udget7 1) Need to veriy which wsts zre elegible ror cosl recovery (orm CDOT i.e. does this (include the ROW ecqu isition cost?) g) Wbat Is the dispositlon of COOTS old / excess ROW7 . h) How wili the GAP be funded? At what issue cost and inierest rate7 Letter sent to City of Wheat Ridge asking for the City to sell property in front of King Soopers back to owners to build a fueling center in WHURA area Real Estate Investments January 7, 2002 Mr. Scott Staples Manager City City of Wheat Ridge 7500 West 29' Avenue Wheat Ridge, CO 80215 JAN - a zooz Re: Ridge Shopping Center, 38t` and Sheridan / Ground Lease Deaz Mayor and Council Members: 6500 S. Quebec Street Suite 300 Englewood, CO 80111 (303) 741-6644 Fex: (303) 741-6645 As the owners of the Ridge Shopping Center, located at 38~' and Sheridan, we have been approached by our anchor tenant, King Soopers ("Kings"), with the request to install a gas station ("Fuel F,acility"), as a means of increasing overall revenues for the Center. Kings is williug to construct the Fuel Facility at their own cost provided that they are not required to pay base rent. As additional consideration for the Fuel Facility, Kings is willing to extend their current lease term by an additional eight (8) years to a new twenty (20) year terni. Sixnilar facilities at other Kings stores indicafe an increase in_revenues with a corresponding increase in sales tax. It is our fiutlier understanding that fuel sales themselves will generate direct or indirect tas benefits to the City. The proposed location of the Fuel Facility would include a portion of the parking lot along 38th Avenue, wluch is owned by the City and leased to us for a period equivalent to the Kings lease term, including options, for a rental rate of $10.00 ("Ground.Lease"). Placing the Fuel Facility partially on our fee interest and partially on the Crround Lease is problematic for Kings, as well as our lender. Furthermore, the anticipated use is outside the parameters of the Ground Lease, which was intended for parking purposes only. City of Wheat Ridge January 7, 2002 Page 2 Pursuant to the terms of the Development Agreement dated April 28, 1995, which includes the Ground Lease, we are granted the right to purchase the entire parldng area for the fair mazket value at the time of the exercise. However, due to the fact that we will not be receiving any additional base rent from the Fuel Facility, acquiring the property for anytlung more than a nominal sum is difficult to jnstify. Arguably, the Crround Lease has little value to the City as there is no rent payable during the term of Kings lease and there is no independent access. On the otfier hand, as indicated above, construction of the Fuel Facility will result in immediate direct economic benefit to the City, as well as, a longer period of assured sales taY revenues from Kings operations. We therefore; respectfully, request the City's agreement to sell to us the Ground Lease property for the total considerarion of $10.00. This proposal is not submitted pursuant to Secfion 18 of the Development ?;greement, but is an, independent request in order to facilitate a new use of the Ground Lease property resulting in substantial sales tax and other benefits to the City. Time is of the essence. We would respectfully request your response as soon as possible Very truly youxs, 38TH & SHERIDAN; LTD, PARTNERSHIP By: PERRY & BAILEY LC, General Parkner By: k-~ Robert E. Perry, Manager CONFIDENTAL DRAFT RESPONSE LETTERS FROM WHURA TO GOLDBERG/WALMART FOR THEIli STANCE IN REFUSING TO WORK WITH WURA'S CONTRACTED EXPERTS SZYMANSKI AND RAY THREE EXAMPLE DRAFT LETTER' S IN TOTAL