HomeMy WebLinkAbout10/30/2002AGENDA
CITY OF WHEAT RIDGE
URBAN RENEWAL AUTHORITY
October 30, 2002
Notice is hereby given of a Public Meeting to be held before the City of Wheat Ridge Urban
Renewal Authority on Wednesday, October 30, 2002, at 4:30 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 - October 14, 2002
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. New Business
A. Designation of Preferred Developer for 38th & Sheridan
- Short presentation by each developer
6. Old Business
7. Other Matters
A. Set November meeting date
B. Elect New Chairperson
8. Adjournment
MINUTES OF
WHEAT RIDGE URBAN RENEWAL AUTHORITY
October 14, 2002
5:30 p.m.
1. CALL THE MEETING TO ORDER
The Wheat Ridge Urban Renewal Authority meeting was called to order by Chair
Collins at 535 p.m. The meeting was held in the second floor conference room
of the Municipal Buiiding, 7500 West 29th Avenue, Wheat Ridge, Colorado.
2. ROLL CALL OF MEMBERS
Members present:
Members absent:
Sandra Collins
Vance Edwards
Mazy Hashem
Elwyn Kiplinger
Janet Leo
Tom Mallinson
Kandi McKay
Mazgy Platter
Norm Burkpile
John Hall
Also attending: Jnn Windholz, Urban Renewal Attorney
Alan White, WRURA Executive Director
Steve Szymanski, Szymanski/Ray
Arne Ray, Szymanski/Ray
Ann Lazzeri, Recarding Secretary
3• APPROVAL OF MINUTES
The minutes of the regular meeting of September 23, 2002 were presented for
consideration. It was moved by Vance Edwards and seconded by Elwyn
Kiplinger to approve the minutes as presented. The motion passed
unanimously.
,
4. PUBLIC FORUM
Mayor Crretchen Cerveny appeazed before the Authority and expressed
appreciation to those who serve on WRURA. She distributed copies of a
newspaper article concerning merchants associations as well as copies of material
concerning the public improvement fee associated with The Mills project in
Lakewood.
vy nu r,,ft rvimutes
10-14-02
Page 1
It was moved by Vance Edwards and seconded by Elwyn Kiplinger to move agenda
item no. 5(Executive Session) to agenda item 8(b). The purpose of the executive
session under C.R.S. Section 24-6-402(4)(b) and (e) is to receive legal advice related
to the request for proposal concerning redevelopment proposals for 38th Avenue and
Sheridan Boulevard and other legal issues related to a relocation policy. The motion
passed unanimously.
5. NEW BUSINESS
A. Discussion of Redeveloament Pronosals for 38tn
Arne Ray informed authority members that proposals had been received
from (1) Cornerstone Group One which proposed a Walgreen's drug as
the primary tenant and (2) Centers, Inc. which proposed an Eckerd's drug
as the primazy tenant. He suggested that Szymanski/Ray, Alan White and
Jim Windholz meet to identify a list of questions on each proposal,
interview each developer and bring the information back to WRURA at its
next meeting. He fiuther suggested that Katy Press contact all landowners
and tenants to inform them that two proposals aze now under consideration
and invite them to attend the WRURA meeting on October 28 where a
decision will be made to select a developer.
It was moved by Vance Edwards-and seconded by Kandi McKay to
direct staff and consultants to meet with the Cornerstone Group One
and Centers, Inc. for the purpose of having a recommendation at the
meeting of October 28; and that affected property owners and tenants
be informed about the proposals and invited to the WRURA meeting
on October 28. The motion passed unanimously.
B. Discussion ot" Lraft Relocation Policies
Jim Windholz referred to the draft relocation policies he submitted to the
Authority. During the executive session, he planned to seek direcfion
from the Authority on legal issues associated with the relocation policies.
He would then prepaze another draft to be presented publicly at the
October 28th meeting.
Alan White will arrange for a lazger meeting space for the October 28th
meeting.
6. OLD BUSINESS
There was no old business to come before the Authority.
WRURA Minutes Page 2
10-14-02
7. OTHER MATTERS
A. Set November meetine date - Since the first November WRURA
meeting will fall on a holiday, Alan White requested that the Authority set
another meeting date. There was a consensus of the Authority that the
first November meeting date should be deterinined at the October 28th
meeting.
B. Executive Session - The meeting was adjourned to executive session
according to the motion made earlier in the meeting. The executive
session began at 5:56 p.m.
Following is a list of those in attendance for the executive session:
Sandra Collins
Vance Edwazds
Mazy Hashem
Elwyn Kipiinger
Janet Leo
Kandi McKay
Margy Platter
Alan White
Jnn Windhoiz
Steve Szyxnanski
Arne Ray
Ann Lazzeri
The executive session was adjourned at 6:40 p.m.
is. AllJdi]RNMENT
It was moved by Mary Hashem and seconded by Vance Edwards to adjourn
the meeting at 6:40 p.m. The motion passed unanimously.
Sandra Collins, Chair Ann Lazzeri, Secretary
WKUKA Minutes Page 3
10-14-02
OF WHEqT
City of Wheat Ridge
Planning and Development Department
Memorandum caC ORA59
TO: Urban Renewal Authority Members
FROM: Alan White, Planning and Development Director n'~r~, , i
~~,i,ll
SUBJECT: Packet Materials
DATE: Qctober 29, 2002
Enclosed is the information for the Urban Renewal meeting on October 30`h. There ue two sets of
information:
A summary memorandum of the development proposals and questions/answers of the
developers from Syzmanski/Ray.
2. A summary of financial terms of the two proposals. THE INFORMATION CONTAINED
IN THIS SLTMMARY IS CONFIDENTIAL. It should not be disclosed.
We are planning to have the developers make a brief (15 minutes) presentation. The Authority will then
discuss the proposals with the expectation that one of the proposals will be selected. There is the
opportunity for an executive session if it is needed.
SZYMANSKI IR.AY
TO.
FROM.•
SUBJ:
DATE:
Alan White, WRLJRA-Fax: 303-235-2857
Jim Windholz, Esq. - Fax: 303-443-7835
Arne Ray - Fax: 303-595-8810 v: 303-595-4422
Steve Szymanski - Fax: 303-595-8810 v: 303-595-3311
WRURA - SWC of 38"' & Sheridan -
Summary of Development Proposals
October 29, 2002
Following is our summary of the two development proposals that have been submitted to the
Wheat Ridge Urban Renewal Authority WRURA for the southwest corner of 38t' & Sheridan in
the City of Wheat Ridge. This summary has been based on the six criteria established by the
WRURA in its recent Request for Proposals (RFP).
In August & September of 2002, the WRURA directed its staff to solicit proposals for the
redevelopment of the SWC of 38d' Avenue and Sheridan Boulevard in the City of Wheat Ridge.
The RFP was distributed to the following owners, developers and brokers who are active in
Wheat Ridge and the Denver Metropolitan area:
❑
Richard Oneslager
❑
Roger Loecher
❑
Hunt Properties
G
Bailey and Company
=
Trunmel Crow Company
~
Mark Goldberg
G
Greg Stevinson
~
Drake ReaLEstate Ser✓ices
❑
Sullivan Hayes
J
Dunton
^
Amcap
-
Jack Fox
In addition, the WRURA advertised its invitation for proposals in the following publications:
E Wheat Ridge for Transcript
Colorado Real Estate Journal
L Denver Post, Sunday Business Section
We understand that the WRURA forwarded severai additional RFP packages in response to
inquired received in response to the various ads.
901 Acoma Street • Demer, Colorado 80204-4023 • Fae: (303) 595-8810
Arno[d Ray (303) 595-4422 • Steve Szymanski (303) 595-3317
Summary of Development Proposals
October 29, 2002
The evaluation criteria established in the RFP for potential development proposals was:
a) Quality of the proposed plan - conformance with WRURA development goals
and redevefopment plan.
b) Projected long-term sales tax generation - considering uses, design quality, and
sales tvc generation potential
c) Long-term viability and competitiveness
d) Proven ability to perform and complete the project - including prior experience,
financial and legal abilities to carry out the plan, and any pre-leasing or letters of
commitment
e) Schedule - due diligence and development timeline, anticipated ability to complete
the redevelopment within a total of 18± months or less
fl Purchase Price - the cash price to be paid to WRLTRA at the c(osing on the
purchase of the redevelopment site. It is anticipated that the selected developer
will complete any necessary off-site and on-site access and infrastructure
improvements.
The WRLJRA has received two development proposals in response to its RFP. Both proposals aze
similaz in that a separate developer would build and lease a new building to a single tenant drug
store tenant on a pre-lease commitment, as follows:
71 Cornerstone Group as the developer for Wafgreen's Drug as the tenant
Centres, Inc. as the developer for Eckerd Drug as the tenant
WRURA staff has had subsequent interviews with both proposal teams. Our summary evaluation
ofthe two proposals, in accord with the WRURA criteria, follows:
901 Acoma Sheet • Denver, Colarado 80204-4023 •Fax: (303) 595-8810
Amold Ray (303) 595-4422 • Steve Szyrrtanski (303) 595-3311
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SZYMANSKI IXAY
TO:
FROM
SUBJ.-
DATE:
-
Alan White, WRURA-Fax: 303-235-2857
Jim Windholz, Esq. -Fax: 303-443-7835
Arne Ray - Fax: 303-595-8810 v: 303-595-4422
Steve Sz}nnanski- Fax:303-595-8810 v:303-595-3311
S WC of 38"' & Sheridan - Summary of Interview with Comerstone Group /
Walgreen's
October 29, 2002
Following is a summary of the interview between the WRURA and Cornerstone Group /
.
Walgreen's Drug that was held on Friday, October 25`11
Representing WRURA were: Alan White, Jim Windho(z, Steve Szymanski and Ame Ray.
The applicant was represented by: Jeff Bailey for the Cornerstone Group.
Key questions and responses were as follows:
1. Would you be willing to assume the demolition of existing structures?
Yes.
2. What are you envrronmental reguirements for the delivery of the site?
a. Would you accept an insurance policy in lieu of a Phase 2 analysis?
b. Would you be willing to pay the $15, 000 to $20, 000+/- cost of the policy?
They do not understand euvironmentai insurance. They are expecting to receive a clean site,
from the WRURA.
3. On your site plan, do you require the resiclentia[ tiouse to the soutti oj the vacant [ot on Sheridan %
Their site does not include the residence at 3749 Sheridan Boulevard.
4. What are your (right-in / right-out versus other) curb cut reguiremenis on Sheridan?
They feel that CDOT has already agreed to a 3-way movement off Sheridan Boulevazd (right-
in, left-in and right-out) and are prepared to move forwazd with that access. However, they do
want to continue discussions with CDOT in an attempt to obtain the right for a full movement
/ 4-way access.
5. Please verify your financial offer? Is there any flexiGility in your offer?
They have iucreased their proposed purchase price to $1,412,000. In addition, they will
assume the cost for demolition.
901 Acoma Street • Denver, Colorado 80204-4023 • Fctti (303) 595-8810
Arnold Ray (303) 595-4422 • Steve Srymanski (303) 595-3311
Walgreen's Interview Summary 2 October 29, 2002
6 Can you finance your payment benveen fhe execution of the DDA and the cZosing to cover our cosu for
acquisition and relocation prior to the closing on the resale ta you? On what terms?
They will be willing to fund up to the full purchase price between the execution of the DDA
and the closing on the resale. The interest cost to the WRiJRA will Prime+l%.
7. Will you / your tenant agree to a"covenant to operate"? For what term?
They feel that an operating covenant is unnecessary. Walgreen's has agreed to a 25-year lease
and they are not aware of any Walgreen's free-standing drive-thru's being closed before the
initial term.
8. Please verifyyour projected approval, financing, site plan and construction schedule. Also, pleare verify
the status, process /schedule and documentation for the tenant commitment and arry other reguired
commihnents / approvals
Their original proposal anticipates 4 to 6 months for site plan approval, 2 months for building
permit and 5 to 7 months for construction, a total of 13f months to open.
They did deliver a commitment letter from Walgreen's for this location.
9. Can you Ge flexible on timing if the urban renewal acguisition and relocation process takes longer than
anticipated?
They will accommodate extensions in our site delivery schedule due to any acquisition,
relocation or other challenges.
10. Are there any other terms, conditions ar requiremends that we should discuss for the urban renewal
authority or the deve[oper / tenant?
They have not delivered a rendering of the proposed store, but say that they will accommodate
to City design guidelines (anticipating brick and stucco).
Tliey said that Walgreeds may pursue another location at this intersection if they do not
receive ihe appxoval for this site.
We look forward to seeing you on Wednesday, October 30°i at 430 PM. Please let us know if you
have any cominents or questions in the meantime.
901 Acoma Street • Denver, Coiorado 80204-4023 • Fax: (303) 595-8810
Amold Ray (303) 595-4422 • Steve Szymanski (303) 595-3311
SZYMf1NSKI lRAY
TO: Alan White, WRLTRA-Fax: 303-235-2857
Jim Windholz, Esq.-Fas: 303-443-7835
FROM.~ Arne Ray -Fax: 303-595-8810 v:303-595-4422
Steve Szymanski - Fax: 303-595-8810 v: 303-595-3311
SUBT.• SWC of 38`" & Sheridan - Summary of Interview with Centres, Inc. / Eckerd Drug
DATE: October 29, 2002
Following is a summary of the interview between the WRLJRA and Centres, Inc. / Eckerd Drug that
was held on Wednesday, October 23rd.
Representing WRURA were: Mary Hashain, Alan White, Jim Windholz, Steve Szymanski and
Arne Ray.
The applicant was represented by: Ken Kazt for Centres, Inc. and Steve Messing, Regional VP of
Real Estate, and Brad Gubser, Director of Construction, for Eckerd Drug.
Key questions and responses were as follows:
1. Would you be wi[ling to assume the demolition of existing structures?
Yes.
2. What are yau emironmental requirements for the delivery of the site?
a. Would you accept an insurance policy in lieu of a Phase 2 analysis?
b. Would you be willing to pay the $15, 000 to $20, 000+/- cost of the policy?
They want to do actual cleanup and/or monitoring instead of using environmental insurance
instead. However, assuming that there are no extraordinary environmental conditions, they
will accept the site as-is and will assume the responsibility and cost for the environmental
cleanup of the site.
3. On your site plan, do you require the residential house to ihe south of the vacant lot on Sheridan?
They will redo tlie site plan so that they will not need the house at 3749 Sheridan Boulevard.
4. YPhat are your (right-in / right-out versus other) curG cut reguirements on Sheridan?
Their proposal anticipates only a rigltt-in / right-out curb cut along Sheridan Boulevazd.
5. Please verify your financial offer?
Their proposed purchase price is $1,500,000, as-is, where-is for the property without the house
at 3749 Sheridan Boulevard. They will also assume the cost for any environmental
\
901 Acoma Street • Demer, Colorado 80204-4023 • Fctt: (303) 595-8810
Arnold Ray (303) 595-4422 • Steve S_rymanski (303) 595-3311
Eckerd Interview Summary
October 29, 2002
remediation azid for demolition. They have ofFered to explore the potential to be the lender of
the GAP money (i.e. the sliortfall between WRURA's cost and the resale value of the site)
over several years on mutuafly acceptable terms concerning the amount of fiznds required, the
repayment term, interest rate and collateral.
6. Can you finance your payment behveen the ezecution of the DDA and the closing to cover our costs for
acquisition and relocation prior to the closing on the resale to you? On what terms?
They will be willing to fund up to the full purchase price between the execufion of the DDA
and the closing on the resale. The cost to the WRURA will depend on the amount of funds
needed and the amount of time that the funds are required. The specific terms would be
negotiated during the negotiation of the DDA.
7. Will you /your tenant agree to a"covenant to operate"? For what term?
They will agree to a two-yeu operating covenant. In addition, they will agree to a declining
penalty until the WRURA recovers its investment under TIF funding, up to a maximum of ten-
years.
8. Please ver~ your projected approval, financin~ site plan and construction schedule. Also, pleare ver~
the status, process / schedule and docunsentation for the tenant commitment and any other required
commitments / approvals .
This is similaz to their recent entry into the Phoenix mazket. The "Yeal estate committee" was
present at the October 23'd interview and has approved this site. Centres, Inc. has developed
110t Eckerd drug stores in other markets.
Their contingencies consist of:
° Title
° Survey
° Soils
° Environmental
° Permitting & signage
° Access
Once they take possession of tlie site and receive the necessary City permits, the will take 6f
months to complete construction and open their store.
9. Can you be f[exible on timing if the urban renewal acguisition and relocation process takes langer than
anticipated?
They aze prepared to begin construction as soon as they can obtain clean title to the site and
the required zoning entitlements. W ithin reason, they will accommodate to extensions in our
site delivery schedule due to any acquisition, relocation or other challenges.
10. Are there any other terms, conditions or reguirements that we should discuss for the urban renewal
authority or the developer/tenant?
901 Aconia Sheet • Denver, Colorado 80204-4023 • Fax: (303) 595-8810
Arnold Ray (303) 595-4422 • Steve Smjmmnski (303) 595-3311
Eckerd Lrterview Summary
October 29, 2002
The rendering in their proposal package shows their intended building on our site. Note that
the building consists of brick and glass walis as welf as screen wal(s and details along 38t'
Avenue and Sheridan Boulevard.
They say that they offer many items at lower price points than Walgreen's.
We look forward to seeing you on Wednesday, October 30'h at 430 PM. Please let us know if you
have any comments or questions in the meantime.
901 Acoma Sbeet • Denver, Colorado 80204-4023 • Fax: (303) 595-8810
Arnald Ray (303) 595-4422 • Steve Szymanski (303) 595-3311