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HomeMy WebLinkAbout10/02/2007AGENDA WHEAT RIDGE URBAN RENEWAL AUTHORITY October 2, 2007 Notice is hereby given of a Public Meeting to be held before the City of Wheat Ridge Urban Renewal Authority on Tuesday, October 2, 2007, at 6:00 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 - September 5, 2007 4. Public Forum (This is the time for any person to speak on any subject not appearing ou the agenda. Public comments may be limited to 3 minutes.) 5. New Business A. Update on 44`n and Wadsworth Property Assemblage B. Resolution 03-2007, Approving Amendments to WRURA Improvements Agreement with Wheat Ridge Clyclery ~ C. Town Center Sales Tax Increment Allocation D. WRURA Board Structure 6. Adjournment ~ - MINUTES WHEAT RIDGE URBAN RENEWAL AUTHORITY September 5, 2007 1. CALL THE MEETING TO ORDER The meeting of the Wheat Ridge Urban Renewal Authority was called to order by Chair Williams at 6:02 p.m. in the council chambers of the Municipal Building, 7500 West 29°i Avenue, Wheat Ridge, Colorado. 2. ROLL CALL OF MEMBERS Authority Members Present: James Bahrenburg Janet Leo (left at 6:30 p.m.) Terrell Williams ' Rick Adams Tom Radigan Authority Members Absent: Lany Schulz Walt Petrit Also attending: Patrick Goff, Deputy City Manager - Jeff Parker, WRURA Attorney Ron Osborn, Wheat Ridge 2020 Mary Cavarra, City Treasurer Ann Lazzeri, Secretary 3. APPROVAL OF MINUTES - August 7, 2007 It was moved by Janet Leo and seconded by James Bahrenburg to approve the minutes of August 7, 2007. The motion passed with Rick Adams and Tom Radigan abstaining. 4. PUBLIC FORUM Charles Durbin requested an update on Cornerstone litigation. Jeff Parker and Patrick Goff informed Mr. Durbin that there is nothing new to report. 5. NEW BUSINESS A. Introduction and Welcoming of New Authority Members Chair Williams introduced new members of the Urban Renewal Authority: Rick Adams, Tom Radigan, and Walt Pettit. WRURA Minutes - 1- September 5, 2007 B. Update on Gemini Development Patrick Goff informed the Autharity that the developer who had previously expressed interest in developing the Gemini property has withdrawn his proposal. Ron Osborn commented that FirstBank is still participating in discussions regarding the area at 44`" and Wadsworth. Mr. Goff clarified that the Gemini property is in an urban renewal area. The property was taken out of the Town Center Urban Renewal Area and placed in the Wadsworth Urban Renewal Area in 2002. C. Update on 44'h and Wadsworth Land Assemblage - Rob Osborn Rob Osborn reviewed the Neighborhood Revitalization Strategy (NRS). He presented an overview of land banking which is a program that acquires underutilized, blighted or abandoned properties in order for redevelopment to occur which will benefit the community and create taxable revenue. Land banking is not urban renewal using eminent domain nor is it designed to benefit a private developer. Incentives for developers give opportunity for the city to see to it that redevelopment meets the city's goals for the area. He explained how land banking is accomplished; how land banking helps a community; reasons for land banking; elements of a land bank project; and benefits of ]and banking. He gave local and national examples where land banking was used. 44`h and Wadsworth is a good location to utilize land banking. Mr. Osborn stated that Wheat Ridge 2020 (2020) holds options on two properties in the 44`h Avenue/Wadsworth area and is working with a consultant to formulate a land use plan far the area. The plan incorporates eommercial retail, residential to buffer Upham Street, municipal use such as a library and/or city offices, and some senior housing. The City Council has approved a$1.5 million loan to WRURA toward this purpose. The banking industry will also be investigated regarding loans. Other financing could include bonding, tax increment financing and state, federal and local grants. Bids would be sent out for redevelopment proposals that would meet the city's goals. Rick Adams asked why this is being considered at this time. Mr. Osborn explained that property values are increasing in this area because of future Wadsworth corridor improvements. Further, 2020's options expire December 31, 2007. Owners would then be negotiating with private developers and the city would lose some say in directing the type of redevelopment that occurs. WRURA Minutes - 2- September 5, 2007 In response to a question about the status of the gas station in the area, Mr. Osborn stated that the owner has indicated a willingness to sell. 2020 does not have an option at this time because the owner is in the middle of an EPA clean-up order. 2020 and the city have acquired a Brownfields assessment grant to identify potential liabilities with the site. Tbis will begin September 14. When city entities own property, there is access to grants far clean-up, etc. In reply to a question from James Bahrenburg about purchasing the Gemini property, Mr. Osborn stated that the property is greatly overpriced at this time. Tom Radigan asked if CDOT plans to widen Wadsworth would affect the redevelopment plan. Mr. Osborn explained that CDOT must accommodate local plan implementation in regard to curb cuts, etc. Tom Radigan asked if present charter requirements would affect redevelopment in regard to building heights and density. Mr. Osborn replied that the Wadsworth plan does not increase densities but maximizes the densities. Zoning changes should be made in regard to parking in commercial areas. - Patrick Goff commented that the loan approved by city council would allow 2020 to purchase the Vohoska property. Mr. Vohoska has also offered to donate back $100,000 toward a library project. Mr. Vohoska has also received a letter of intent from another developer. Mr. Osborn stated that 2020 has a 30-day right of first refusal. It would take about $4 million to purchase the entire assemblage. There was discussion about approaching the owner of the gas station to get that property under contract. Rob Osborn recommended that the offer be made subject to the clean-up order requirements for the gas staYion site and any clean-up activities on WRURA's site related to the gas station and reduce the price of tlie acquisition in relation to the amount of clean-up that may be necessary. Jeff Parker mentioned that there is the possibility of state reimbursement for environmental clean-up. Rick Adams asked what would happen if there is a wave of protest over redevelopment of property. Mr. Osborn stated that there is overwhelming support for the NRS and the property would be redeveloped in accordance with NRS goals and the Wadsworth corridor plan. _ Mary Cavarra expressed her support of the plan because it would give the city some control in making sure a large portion of the redevelopment will WRURA Minutes - 3- September 5, 2007 consist of retail business. The city's sales tax is not keeping up with expenses. Rob Osbom commented that, over the years, as businesses leave on the northwest side of Wadsworth, they are being replaced with service oriented businesses associated with the hospital that don't produce any sales tax revenue for the city. D. Property Acquisition Loan - Patrick Goff James Bahrenburg expressed some concem about taking a vote without more membership present. Discussion followed. Circumstances prevent the Authority from meeting again until October 2. Accepting an option does not set up the purchase and sales agreement. There could be a contingency that funds from the city would not be transferred until settlement. It was moved by James Bahrenburg and seconded by Tom Radigan to accept the $1.5 million loan from the city contingent upon the Urban Renewal Authority purchasing the Vohoska property. The motion passed 4-0. [t was moved by James Bahrenburg and seconded by Tom Radigan to accept assignment of the option held by Wheat Ridge 2020 relating to the Vohoska property and to instruM staff to negotiate a purchase and sales agreement pursuant to the terms of the Option to Purchase. The motion passed 4-0. It was moved by James Bahrenburg and seconded by Tom Radigan to direct staff to cpntinue negotiations and investigations relating to financing opportunities for the purchase of properties in the 44t" and Wadsworth area. The motion passed 4-0. It was moved by James Bahrenburg and seconded by Tom Radigan to direct city staff to make a recommendation to City Council that they investigate renegotiating the IGA including the TIF provision and the cap of the Town Center Agreement. The motion passed 4-0. E. ADJOURNMENT The meeting was adjourned at 8:00 p.m. The next meeting is scheduled far October 2, 2007. Terrell R. Williams, Chair Ann Lazzeri, Secretary WRURA Minutes - 4- September 5, 2007 Wheat Ridge Urban Renewal Authority 7500 W. 29th Auenue Wheat Ridgg Colorado 80033 3032352846 303-235-2857 (Fau) TO: Urban Renewal Authority Board Members FROM: Patrick Goff, Executive Director_@~ RE: Update on 44`h and Wadsworth Property Assemblage DATE: September 27, 2007 1. Option to Purchase Assignment At the September 5, 2007 URA meeting, staff xeceived direction from the Boazd "to accepi' assignment of the option held by Wheat Ridge 2020 relating to the Vohoska properry and to instruct staff to negotiate a purchase and sales agreement pursuant to the ter•ms of the Option to Purchase. " The atlached Option to Purchase Assignment was received from WR2020 on September 25, 2007. WR2020 is assigning the option to WRURA to purchase the Voho:;ka property located at 7540 W. 44t' Ave, for the amount of $7,500.00. This option consideration shall be credited to the purchase price at settlement. WR2020 has commissioned a Phase I assessment of the properties (attached) to asses<, the environmental conditions of the properties. Estimates are that an initial report will be concluded and presented to WR2020 by mid-October. Staff recommends that negotiations to purchase the Vohoska property aze put on hold until WR2020 and the WRURA have a chance to review the Phase I environmental report. 2. Financing Negotiations At thF; September 5, 2007 URA meeting, staff received direction from the Board "to contiizue negotiations and investigations relating to financing opportunities for the purchase of properties in the 44`h and Wadsworth area. „ Staff continues to negotiate with I" Bank Wheat Ridge for a property acquisition loan in the amount of $4.0 million for the properties located at 7340 and 7540 W. 44' Avenue and other potential property acquisitions in the area. Bond counsel has concluded that this type of loan would not be eligible for tax- exempt status; therefore, the interest rate will be slightly higher than a tax-exempt loan. Specific rates are still in negotiations; however, the recent cut in interest rates by the Feds will likely benefit the V✓RURA. The initial terms of the loan deal would provide for an initial 3-yeaz interest only loan. Estimated annual debt service for the first three years of the loan would be approximately $240,000. Attachment: Option to Purchase Assignment Phase I Environmental Assessment Memo CONTRACT ASSIGNMENT This OPTION TO PURCHASE ASSIGNMENT ("AssignmenY') is made this day of , 2007 ("Effective Date") between WHEAT RIDGE 2020, INC., a Colorado nonprofit corporation with a business address of 4350 Wadsworth Boulevard, P.O. Box 1268, Wheat Ridge, Jefferson County, Colorado 80034 ("WR2020"). AND WHEAT RIDGE URBAN RENEWAL AUTHORITY, a Colorado Municipal Authority with a business address of 7500 West 291h Avenue,City of Wheat Ridge Municipal Building, Wheat Ridge, Jefferson County, Colorado 80033("WRURA"). For good and valuable consideration in the amount of SEVEN THOUSAND FIVE HUNDRED DOLLARS ($7,5000.00), the sufficiency and receipt of which is hereby acknowledged by the parties hereto, WR2020, (hereinafter "Assignor") assigns, sells, conveys, and transfers all of Assignor's interest to WRURA, (hereinafter "Assignee" in the contract described as follows: 1. Option to Purchase Contract by and between WR2020 and Vernon and Majorie Vohoska dated, January 3, 2007, for real property described as: 7540 West 44t' Avenue Wheat Rid¢e Jefferson Countv Colorado Parcel ID No. 39-234-04- 0021; as attached hereto as Exhibit "A". 2. Assignor agrees that all rights and obligations of Assignor, azising from the above listed contract or otherwise by law or by the existence of conditions precedent, which may or may not have occurred as of the date of this Assignment, are hereby included in this Assignment and Assignee hereby agrees to accept same as if Assignee was an original party to the aforesaid contract, releasing all rights and liabilities of the Assignor to the Assignee, and Assignee accepting all rights, further indemnifying the Assignor from any claims against the Assignor arising out of the terms of the listed contract. 3. Assignor represents and warrants that the interest of the Assignor in the contract subject to this Assignment is free of liens, claims, or encumbrances of any kind by third parties. 4. This Assignment shall be binding upon and inure to the benefit of the Assignor and Assignee and their respective affiliates, successors, assigns, heirs, and devisees and legalrepresentatives. 5. It is the intention of the parties to this Assignment, that in the event a court of competent jurisdiction finds any provision or portion of this Assignment unenforceable for any reason, the balance and remainder of the Assignment shall ATTACHMENT 1 remain effective and enforceable to the extent possible under the circumstances then existing. 6. Assignor and Assignee agree that this Assignment shall be deemed govemed by the laws of the State of Colorado, and fiuther, each agrees to submit to the subject matter and personal jurisdiction of the courts of Colorado. 7. This Assignment supersedes all prior and contemporaneous agreements and discussions of the parties hereto regarding the subject matter of the Assignment, and the contract assigned hereby, as written, and constitutes the entire agreement of the Assignment between the parties. 8. There are no contingencies other than those specifically listed herein, to the obligations, duties and performance of the parties hereto. , IN WITNESS WHEREOF, the Parties hereto, intending to be legally bound hereby, have hereunder set their hands and seals on this day of 2007. WHEAT RIDGE 2020, INC. By: Robert J. Osbom, Esq. Executive Director Wheat Ridge Urban Renewal Authority. By: Terrell Williams Authority President Sep.21. 2001 1:46PM WheatRidge 2020, [oc. PT7TtCHASE, OPTIOIV AGREE IIENT No. 1412 P. 4 This agreement dated the _ITO day of ~J 7. 2007, is hy and between Vernon and Marjorie Vohoska (herein colleCtively r Pet1•ed to as "Seller") and'Wheat Itidge 2020 (herein after refened to as "Buyer") . For good and valuable consideration, the receipt and sufficiency of wlnch is hereby acknowledged, 3EI.LET2 hereby grants to BUYER an exchisive option to purchase the real propeiTy described as follows: 7540 'UVest 44th Avenue V`Jheat l2id e lefferson Countv Colorado. Parce] [A No. 39-234-04-0021 more fully descri6ed in attached Exhibii A(herein after refeired to as the "Property") strictly according to ihe terrns and conditions contained with in this agreement (herein after refeized to as the "Option to Purchase Agreement"). TERM OF QPTION. This option to purchase shall cotnmence on the date of execution of this agreement, and Shall expire at 12 o'clock midnight, Three -Iiundrad Sixty-Five (365) days from the date of executian of this agreement. , ASSIGNMCNT OF OPTION. This option to purchase is assignable. The Sttyer may assign, delegate, transfer or convey of this Option to Purchase Agreement without the Seller's express wlitten peimission. I3U1'ETt'S RTG14T TO EXE, TiCISE OPTTON. Buyer may only exercise this option to purchase by deliveting written notice of intent to purchase to Seller. 5uch notice must specify a settlement date ( i,e. closing date) to occur on or before the expiration date of this agreement as set forth in Parag•aph 1 herein above. T3TJXER'S T2TGHT'S OF CANCE LLA'I'ION. Buyer may caneel this Option to Puzchase Agreement by providing written notice to the Seller, on or before thirty (30) days prior to the expira[ioii date of this agraement. Buyer's express written notice to cancel may be ri•ansm9tted by mail, facsimile, and electronic mail to Sellar, Receipt of delivery is not necessaiy to effectuate Suyer's notice of cancellation to Seller. 5. SELI,Eii'S TtiGHTS TO CANCET,LATTON. Seller may cancel tlus Option to Purchase Agreementby providing written notice to the Suyer, on or before thirty (30) days prior to the expiration date offhis agreement. Should Seller e7cerCise its right of cancellation, Buyer shall have ten (10) days after receipt of notica of cancellation from Seller to exercise the Buyer's rights under this sgreement, to purchase, or notify Seller of the Huyar's acceptance of Seller's canCellation, Seller's express written notice to cancel may be transmitted by mail, facsimile, and electronic mail to seller, Receipt o£deliverq is necessaty to effectuate adequate notice to Buyer. 6 OPTTON CONSTDERA TTON. Bnqer shall remit option consideration in the sum of $7,500 (Seven-Thousand Five-Hundred dollars) to an escrow account to be held by - Buyer's Counsel, or esci•ow agent, upon axecption of this Option to Purchase Agreement. Said Consideration is refundable to Buyer, in full, should the Seller exercise its rigJrt of cazaCellation, and Buyer accepts the Seller's cancellation, as petmitted herein above. In Sep.21, 2001 1:46PM WheatRldge 2020, Inc. No.1412 P. § the event Buyer tunelq exercises this aption and effectuate the conveyance of the Property, the option consideration shall be credited to the purchasa price at settlement. The option considezation shall not be refunded if Buyer fails to exercise tkris option, or cancels the option under its rights of cancellation. T'URCHA SE PRICE. The total purchase price for the Property parsuant to this Option to Purchase Agreement is One Million Pive Hundred Thousand Dollars ($1,500,000.00). 8. CLOSTNG ANb SETTLEi lYiENT. Closing and settlement shall be at a title company designated by the Buyer. All closing costs, except for the cost of extended coverage title insurance, and any points, fees and/oY charges imposed by the Buyer'S lender shall be the sole responsibility of the BLiyer, Seller shall only be responsible for its pro-rated shaze of the ad valorem taxes due as of the date'of closing. TT IS THE BC1 YER'S SOLE ItESPONSTBTLTTY TO ARRANCrB PINANCING FOR THB TRANSACTIOIVS. SELLER HAS MADE NO REPTZESENTATIONS TO BTJYER REGARDTNCr TT3E AVAILASTT,TTY OP PTNANCING OF BCT i'PR'S ABILITY TO QLIALTFY FOR FTNANCTNG. q, REMEDTES T7T'OlV DEFAUL'I'. (a) In the event of anq default by Buyer of the teilns of this Option to Purchase Agreement, Seller shall have the right to teiminate this Option to purchase Agreement and all rights hereundez by giving written notice of termination, Should Buyer clefauit, Buyer ralinquislies all cights to the option Consideration, and said consideration shall be paid to Seller. (6) In the event of anq such default by Seller of this Option to Purchase Agreement, Buyer shall have the option to teiniinate this Option to Purchase Agreement aud all rights hereunder bq giving written notice of termination or to such strict performance of this Option Agzeement. Seller' s default entitles Buyea• to a complete refund of the option consideration if the remedy of strict performance is not pursued. 10. COIVTTSSTONS, 7'here will be no real estate commissions paid as a result of this transaction, 11, MODTriTCATTON. Any modifica6on of any portion of this Option to Purchase Agreement must be made in writing sigXied bq both parties. 12. 12EFEIt] EiVCES IN R'OItUTiV G. Plural references made to the pu4ies involved in this Option to Purchase Agreetnent may also be singular, and s'rngle referezices may be plural. These references may also apply to Seller and Buyer heirs, executors, administrators; successozs oa• assigns. 13. TTME OF kERFORMANCE. Time is ofthe essence with respect to this Option to Purchase Agreement. 14, ENTIRE AGT2Ei ENTEIVT. As written, this Option to Purchase Agreement constiCUtes the fmal, entire agreement between the Huyer azid Seller. They have made no further Opiion 7340 W. 44i6 z DraB date: 11!8/06 R701/l Sep.27. 2007 1:47PM WheatRidge 2020, loc. No.1412 P. 6 promises o£ any kind to one another, nor have they reaChed any otfier undexstandings, either wririen or oral. 15. A.CTi7VOWT.EDGIVIENT. The undersigned Buyer hereby aclmowledge that it has read this Option to Put•chase Agreement, understands it, aggress to it aaid has been given an executed copy. This Option to Purchase Agreement may be recorded in the off'ice of the Clerk and Recorder for Jefferson County, Buyer and Seller are advised, and had opportunity to seek advice of legal, tax, teckmical expertise professionals of their own selection azid any other counsel of their choosing conceining this contract poor to signing. 16. CfTOTGE OF LA'1%V AND VENIIE. This Option to Purchase Agreement shall Ue construed according to the laws of the State o£ Colorado and is eaCUted in Jefferson County, Colorado. All parties agree that the venue £or auy dispute regarding this Option to Purchase Agreement shall be 7efferson County, Colorado. TN WTTNESS WEiETtEOF, the Parties hereto, intending to Ue legally bound hereby, have hereundex set their hands and seals on this -day of , 2007. SLL~E1`2: Data: 6~'/Cg~// „ v ` Vemon Vohoska bate: Marjo ~i~Y --aska r,. BT7YER: WHEAT RIDCrB~020, TNC. ATI'EST: By: ~k1 ~ _%kA ~ Option 7540 W. 44" 3 Draft date: ] 1/8/06 RJO/p Sep.27. 2001 1:47PM WheatRidge 2020, In c. No, 1412 P. 1 PertnersinaVibrantWheatRidge Aiipst [4EAT' RIDG~. 202Q 14, 2007 Tim ICelley T7epartment of Labor and Employment Oil and Public Safety 633 171h Street, Ste. 500 Denver, CO 80202-3660 Dear Tim, RE: bP5 grant for site assessment at southeast corner of'VJ. 44j° Avanua and Wadsworth Blvd. My organization is appreciative of your assistence in refarance to assessing the environmantal conditions on poRions of this tract. Whcat Ridge 2020, Tnc. has purchase options on two parcels. Jeffarson County properry tax asseesment information for the properties under option is listed below: -7540 W, 44j° Avenue, Wheat Ttidge, CO. 7efFerson County, Colorado Yareel ID Ato. 39-234•04-0021. Approx. 3.2 acres Owners: Vemon and Marjorie Vohaska. -7340 W. 44`" Avenue, Wheat ltidge, CO. 7efferson County, Colorado Yarcel lb No. 39-234•00-096. Approx. 4.166 acres Ownar: Milloie E. Kazl. I do not have legal desra9ptions of either 4act. T have enclosed a parcel map of the coiner and immediate environs with thase sites highlighted. As we further discussed, the Phase 1 assessmants will not require access to or invasive procedures on either tract and will be primarily comprised of records research and visual observations &om adj aceAit public right of way. Wheat Itidge 2020 would need to o6tain permission &om the owner of each site for assessment work that would require site accoss or invasive procedures. Wo agead 1haC the Phase 1 assessments would be completed as described a6ove and Phase 2 work, if needed, would not proceed until owner permission was obtained. Shonld you have any questions ot desire additiona] inForntation, please contact me. Lastlq, when a timeline far the completion of this work is ready, pleuse advlse ma of these dates, Thank you. Sincercly, M1~~'1rtG~- ~ ' Denisa Balkas, AICP Director of 12ea1$state I)evelopment End. P.O. nox 1268 tene,ar r.iocE. Co : ATTACHMENT 2 '2° 25`' 1030 rnx:3039409332 Sep.21. 2001 1:48PM WheatRidge 2020, [nc. 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E ~ = a d a x s R 9¢ 8 g ~ ~e3jEBeg )K&6)~~~aia~ ~g ~ 'g F r, a x a c p u s 8~ ~gY~~~•gE C'~~C`~~ ~ tt v: a c¢ a e ~ Wheat Ridge Urban Renewal Authority 7500 W. 29th Avenue Wheat Aidge, Colorado 80033 3032352846 303-2352857 (Fax) TO: Urban Renewal Authority Board Mem ers FROM: Patrick Goff, Executive Director RE: Amendment to WRURA Improvements Agreement with Wheat Ridge Cyclery DATE: September 27, 2007 Executive Summai'v The WRURA entered into an Improvements Agreement with Wheat Ridge Cyclery (Yhe Cyclery) on March 20, 2007 to assist in blight prevention and elimination by providing additional funds to the redevelopment of the Cyclery property. Section two and Exhibit B of the Agxeement (Improvements) describes the Eligible Improvements that are eligible for reimbursement from the WRURA and asserts that they must be completed by October 1, 2007. Section three of the Agreement (Sales and Property Tax Increment Rebates) authorizes the use of sales and property tax increment as an inducement for the Cyclery to complete the Eligible Improvements by the completion date of October 1, 2007. The Cyclery has contacted Staff and has requested an extension of one month (November 1, 2007) to complete the remainder of the Eligible Improvements, specifically, the Public Arts Panels as described in Exhibit B-7. Backeround The WRURA and the Wheat Ridge Cyclery entered into an Improvements Agreement on March 20, 2007 for improvements to the Cyclery property located at 7085 W. 38t' Avenue. It is WRURA's desire to assist the Cyclery in making a number of improvements to the property, which would improve the public appearance 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. As an inducement to the Cyclery to complete certain improvements, WRURA agreed to reimburse to the Cyclery those costs associated with these improvements by implemenring tax increment financing. Under the Agreement, the Cyclery will be receiving 100% of both the property tax and sales tax incremental revenue generated by the expansion of the business. The Agreement establishes WRURA's maximum obligation for reimbursement at $264,180, or 10 years of sales and property tax increment, whichever occurs first. The maximum obligation is equal to the estimated costs of the Eligible Improvements which are described in detail in Exhibit B of the Improvements Agreement. Staff has been notified by the Cyclery that the Public Arts Panels, with an estimated cost of $12,500, will not be installed by the required completion date of October 1, 2007. The WRURA attorney's office has confirmed that sales and property tax increment shall not accrue until all Eligible Improvements have been completed. Recommendations Staff recommends that the WRURA amend the cunent Improvementc Agreement with Wheat Ridge Cyclery to change the agreed upon completion date for Eligible Improvements from October 1, 2007 to November 1, 2007. Attachment: WRURA Improvements Agreement with Wheat Ridge Cyclery WHEAT RIDGE URBAN REN&WAI- AUTHORITY RESOLUTION NO. _0 (_-07 Series of 2007 A RESOLUTION OF THE WHEAT RIDGE URBAN RENEVVAI- AUTHORITY APPBOVING THE IMPROVEMENTS AGREEMENT WITH WfiEAT RIDGE CYCLERY WIIEREAS, the 38'" Avenue Corridor Redevelopment Plan provides for the redevelopment project consisting of the expansion of Wheat Ridge Cyclery at 38"' Avenue and Aigh Court; and WHEREAS, representatives of Wheat Ridge Cyclery and the staff of the Authority have negotiated an improvement agreement. THEREFORE BE IT RESOLVED by the Wheat Ridge LJrban Renewal Authority that: Section 1. The improvements Agreement between the Authority and Wheat Ridge Cyclery attached hereto as Attaclunent 1 is hereby approved. DONE AND RESOLVED this day of _MWD11 2007. I Chair ATTEST: Secretaty APPROVED AS TO FORM: Corey ffin , LJRA Attorney WHEAT RIDGE URBAN RENEWAL AUTHORITY IMPROVEMENTSAGREEMENT THIS AGREEMENT is made and entered into this Zllm day of ff&G~ , 2007, by and between the Wheat Ridge Urban Renewal Authority ("WRURA"), and the Wheat Ridge Cyclery, with a business address of 7085 West 38"' 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 seg., 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 boundaries, to businesses within the WRURA boundaries, and to owners of property within WRURA boundaries; WHEREAS, the Cyclery owns a business located at 7085 West 38`1' Avenue, Wheat Ridge, CO 80033, the legal description of which is attached hereto as Exhibit A(the "Property"), which is within the WRURA boundaries, and which provides an important economic base for the City of Wheat Ridge (the "City"); WHEREAS, WRURA desires to assist the Cyclery in making a number of improvements to the Property, which shall improve the public appearance 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; WHEREAS, the Cyclery desires to expend additional funds as part of the redevelopment of the Property that will assist in remedying blight and preventing future blight in the area, and WRURA desires to assist in providing this additional funding directed towazds blight prevention and elimination; and WHEREAS, WRURA desires to reimburse the Cyclery for its expenditures by paying to the Cyclery the sales and property tax increments WRURA receives from the Property, pursuant to the terms set forth in this Agreement. 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. Definitions. a. "Property Tax IncremenY" means the amount of property taxes paid to the County for the Property and then paid to WRURA by the County over and above the base amount of property tax last certified to the County for the Property prior to WRURA's implementation of property tax increment financing for the Property. ATTACHMENT 1 03116107 Ilsrv-ci-eng-0021users$IawhiteL entAgreement_Cyclery-4.doc b. "Sales Tax Increment" means the amount of sales tax generated by the Cyclery and collected by the City over and above the base amount of sales tax generated by the Cyclery on the Property and collected by the City in the year immediately preceding WRURA's implementation of sales tax increment financing for the Property. 2. Improvements. a. Attached to this Agreement as Exhibit B is a list of the Cyclery's plan for certain public improvements to the Property, which are referred to collectively as the "Eligible Improvements.° The Eligible Itnprovements shall be constructed in compliance with approved construction plans by a licensed contractor qualified to perform the wark. b. The Cyclery agees to complete the Eligible Improvements on or before October 1, 2007. Completion of the Eligible Improvements shall be deemed to have occurred upon final acceptance of the Eligible Improvements by the City. The Eligible Improvements shall be completed by October 1, 2007 regardless of cost increases or other unforeseen cireumstanees. 3. Sales and Property Tax Increment Rebates. a. Sales Tax Increment. As an inducement to the Cyclery to complete the Eligible Improvements, WRURA agrees to set aside and thereafter rebate to the Cyclery, on the percentage basis identified herein, the Sales Tax Increment generated by the - Cyclery to a maximum aggregate amount set forth in Section 4 of this Agreement. Such rebate shall be subject to the following: i. Commencing upon completion of the Eligible Improvements, WRURA shall rebate to the Cyclery one hundred percent (100%) of all Sales Tax Increment generated by the Cyclery and received by WRURA. The rebates shall be made annually on January 31st of each year, and shall be for the preceding year. ii. If, in any year, no Sales Tax Increment is generated by the Cyc]ery and received by WRURA, no rebate shall be due to the Cyclery for that year. iii. The Sales Tax Increment rebate payable to the Cyclery shall be pmrated for the initial year such rebate is due based upon the date the Cyclery completes the Eligible Improvements. b. Propertv Tax Increment. As an inducement to the Cyclery to complete the Eligible Improvements, WRURA agrees to set aside and thereafrer rebate to the Cyclery, on the percentage basis identified herein, the Property Taac Increment generated by the Property to a maximum aggregate amount set forth in Section 4 of this Agreement. Such rebate shall be subject to the following: i. Commencing on comple[ion of the Eligible Improvements, WRURA shall rebate to the Cyclery one hundred percent (100%) of all Property - Tax Increment generated by the Property and received by WRURA. The rebates 03/!6/07 Ilsrv-ci-eng-0021users$IawhitelAUFitesiURA138th AvenuelWRCycleryllmprovementAgreement_Cycleiy-4.doc shall be payable within thirty (30) days of receipt of the Property Taac Increment by WRURA from the County. ii. If, in any year, no Property Tax Increment is generated by the Property and received by WRURA, no rebate shal] be due to the Cyclery for that year. iii. The Property Tax Increment rebate payable to the Cyclery shall be prorated for the initial year such rebate is due based upon the date the Cyclery completes the Eligible Improvements. 4. Maximum Rebate. In no event shall the total amount rebated by WRURA to the Cyclery exceed the total estimated costs of the Eligible Improvements, which is Two Hundred Sixry Four Thousand One Hundred Eighty dollars ($264,180.00) (the "Estimated Costs"). Notwithstanding the foregoing, if the total actual costs of the Eligible Improvements are ]ess than the Estimated Costs, said maximum amount shall not exceed the actual costs of the Eligible Improvements. The actual costs of the Eligible Improvements shall be evidenced by invoices and receipts satisfactory to WRURA in form and substance. 5. Term. The term of this Agreement shall be ten (10) years from the completion of the Eligible Improvements. Upon receipt of the maximum rebate amount by the Cyclery in accordance with this Agreement, WRURA's obligation to rebate Sales Tax and Property Inerements to the Cyclery shall terminate. Upon expiration of the terxn of tlvs Agreement, the parties' obligations hereunder shall terminate, whether or not the maximum amount of Sales and Property Tax Increment rebate has been reached. 6. Inspection. The Cyclery agrees to permit officials or representatives from WRURA 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. 7. Compliance with law. In cacrying out its obligations under this Agreement, the Cyclery agrees to comply with all applicable laws, including City ordinances and building codes. 8. 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 LTABILITY 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. ' 03/16/07 Ilsrv-ci-eng-0021users.6lawhitelAil FileslUR4138th AvenuelWRCycleryllmprovementA.greement_Cyclery-4.doc 9. Miscellaneous. a. GoverninQ 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 the District Court of Jefferson Counry, Colorado. 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 consritute a waiver of any of the other terms or obligation of this Agreement. c. Integration. This Agreement and any attached exhibits constitute the entire Agreement between the Cyclery and WRURA, superseding all prior oral or written communications. d. Third Parties. There are no intended third-party beneficiaries to this Agreement. None of the professionals, contractors, or subcontractors hired by the Cyclery shall be intended third-party beneficiaries of this Agreement. C. Notice. Any notice under this Agreement shall be in writing, and shall be deemed sufficient when d'uectly presented or sent pre-paid, first class United States Mail, addressed to: WURA: Alan White, Executive Director Wheat Ridge Urban Renewal Authority 7500 W. 29th Avenue Wheat Ridge, CO 80033 With a copy to: Corey Hoffmann Hayes, Phillips, Hoffrnann & Carberry, PC Suite 450, The Market Center 1350 17" Sri'eet Denver, CO 80202-1576 Cyclery: ~OdAL-d l t~'~=$L 7085 West 38' Avenue Wheat Ridge, CO 80033 £ Severability. 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. ' D3/16/07 Ilsrv-ci-eng-0021users8lawhitelAll Filesl URA138th AvenuelWRCycleryllmprovement4greemen!_Cyclery-4.doc h. AssiQnment. 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. Governmental Immunitv. WRURA, its officers, and its employees, are 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 occunence) or any other rights, immunities, and protections provided by the Colorado Govemmental Inununity 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. 'rhe rights and remedies of WRURA under this Agreement are in addition to any other rights and remedies provided by law. The expiration of this Ageement 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. IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the date first set forth above. STATE OF COLORADO ) ) ss. COUNTY OF 7e TflrS o+'s ) The foregoing instrument was subscribed, swom to and acknowledged before me this ( s'7 day of (yl0.rch , 2007, bykunai~l K«-{el, as Vtce Ares• of the Wheat Ridge Cyclery. My cornmission expires: 10/Zvlu q (S E A L) t~ 3C Q-~•''~ '•,p~, TA/ty,• ~ Notary Public ~81.1C' • , Q,~' J 03/76/07 Ilsrv-ci-eng-002luser5.8lawhitelA(1 Filesl URAl38th AvenuelWRCyc7eryllmprovernentAgreement_Cyclery-4.doc WAEAT RIDGE URBAN RENEWAL EXHIBIT A Commencing at the southeast corner of Section 23, Township 3 South, Range 69 West of the 6t' Principal Meridian; thence S89°38'23"W a distance of 1018.72 feet along the south line of said Section; thence NO0°14'U1"W a distance of 30.00 feet to the southeast corner of Lot 1, Craig Subdivision and the Point of $ethence along the southerly and westerly lines of said Lot 1 and the westerly line of said Lot 2, fhe following 3 courses: 1) S89°38'23"W a distance of 104.97 feet to a point of curvature; 2} along the azc of a curve to the right having a radius of 15.06 feeY through a central angle of 90°07'36" and having an arc length of 23.60 feet, a chord bearing N45°17749"W and a ohord length of 21.24 feet to a point of tangency; 3) N00°14'01"W a distance of 210.97 feet to the northwest corner of the south 6 feet of said L.ot 2; Thenca N89°38'23"E a distanca of 120.00 feet along the north line of the sonth 6 feet of said Lot 2; thence S00°14'01"E a distauce of 226.00 feet along the east liue of said Lot 1 and said I.ot 2 to the Point ofBa 'n , Contaiuing 27,070 square feet or 0.621 acras more or less. EXHIBIT B ELIGIBLE IMPROVEMENTS AND ESTIMATED COSTS a. Masonrv. The Cyclery shall undercake a project at an estimated cost of Thirty Seven Thousand Twenty dollazs ($37,020.00) for masonry work azound the Property, which shall meet the specifica6ons set forth in the schedule attached hereto as Exhibit B- 1. b. Utilities. The Cyclery shall undertake a project to upgrade its power system to a 3-phase system and to underground the power line across High Court, at an estimated cost of Thirty Thousand Eight Hundred Twenty dollars ($30,820.00), which shall meet the specifications set forth in the schedule attached hereto as Exhibit B-2. c. Roof Svstem. The Cyclery shall undertake to expend approximately One Hundred Fifty Five Thousand Eight Hundred Ten dollars ($155,810.00) in roof repairs, which shall meet the specifications set forth in the schedule attached hereto as Exhibit B- 3. d. Pavine Stone/Hardscape and Landscaroing. The Cyclery shall undertake a project to install pave stone or stamped concrete along the new store front on High Court and install planter and landscaping at 38'1' and High Court at an estimated cost of Fourteen Thousand Eight Hundred Ten dollars ($14,810.00), which shall meet the specifications set forth in the schedule attached hereto as Exhibit B-4. e. Curb and Gutters. The Cyclery shall undertake a project to install 220 lineal feet of curb and gutter along High Court at an estimated cost of Eight Thousand Four Hundred Twenty dollars ($8,420.00), which shall meet the specificarions set forth in the schedule attached hereto as Exhibit B-5. f. Demolition. The Cyclery shall undertake a project to demolish certain improvements which are necessary for the elimination of blight and are part of the redevelopment of the Property, at an esrimated cost of Four Thousand Eight Hundred dollars ($4,800.00), which shall meet the specifications set forth in the schedule attached hereto as Exhibit B-6. g. Public Arts Pan els. The Cyclery shall undertake a project to install public arts panels at an estimated cost of Twelve Thousand Five Hundred dollars ($12,500.00), which shall meet the specifications set forth in the schedule atfached hereto as Exhibit B- 7. 03/16/07 Ilsrv-ci-eng-0021usersSlawhiteL111 Filesl URAl38th AverarelWRCyclerj,llmprovementAgreement_Cyclery-4-doc EXHIBIT B-1 MASONRY WORK SPECIFICATIONS 1. Upgrade 1304 square feet of concrete masonry block, split face and smooth face block with integral coloring. 2. Construct six upgraded stone columns at entrance, including upgraded capstones, construct 1,800 square feet of stone fa~ade, and install three stone landscape pillars with upgraded capstones. 3. Install new storefront window on existing west exterior wall. Total $37,020.00 03/16/07 Ilsrv-ci-eng-0021users$IawhilelAll Filesl URAl38th AvenuelWRCycleryUmprovementAgreement_Cyclery-4.doc EXHIBIT B-2 UTILITY WORKSPECIFICATIONS 1. Disconnect, relocate and underground overhead electric lines; convert to 3-phase. 2. Disconnect and relocate natura] gas line. Total $30,820.00 03116107 llsrv-ci-eng-0021 users$I a~,hitelA!! Filesi URA1381h Avenuel WRCyclery UmprovementAgreement_Cyclery-4.doc EXHIBIT B-3 ROOF SYSTEM SPECIFICATIONS 1. Insta117,000 square feet of new upgraded metal roof system with special bow trusses, spray-on insulation and green standing seam metal roofing. Total $155,810.00 03/16/07 Ilsrv-ci-eng-0021users$IawhitelA1l Filesl URAl38th AvenuelWRCycleryllmprovementAgreement_Cyclery-4.Joc EXHIBIT B-4 HARDSCAPE AND LANDSCAPE SPECIFICATIONS 1: Install 1,016 square feet of paver stone at front of new entrance. 2. Install additional landscaping in planter at northwest comer of building. 3. Install new street tree at southwest corner of building. Total $14,810.00 03/16/07 Ilsrv-ci-eng-0021users$lawhilelAl! Ff1esIURA138Ui AvenuelWRCycleryVmprovementAgreement_Cyclery-4.doc EXHIBIT B-5 CURB AND GUTTER SPECIFICATIONS 1. Cut and remove asphalt; install 147 linear feet of curb and gutter, drain pan, handicapped ramp; patch back and restripe. Total $8,420.00 03116107 Ilsrv-ci-eng001 Vusers$InwhitelA!! Filesl URAl38lh Avenuel WRCycleryllmprovementAgreement_Cyclery-4.doc EXHIBIT B-6 DEMOLITION WORKSPECIFICATIONS 1. Demolition of structures aud paved areas within urban renewal portion of property. Total $4,800.00 03/16/07 I1srv-ci-eng-0021users$IawhitelAll FilesIURA138th AvenuelWRCycleryllmprovementAgreement_Cyclery-4.doc EXHIBIT B-7 PUBLIC ARTS PANELS SPECIFICATIONS l. Fabricate and install art panels on west and south exterior walls, including azchitectural metal banding at top of parapets on south side of building. Total $12,500.00 03/21/07 Ilsrv-ct-eng-002lusers8fawhitelAll FileslURA138th AvenuelWRCycleryllmpravementAgreement_Cyc(ery4.doc EXHIBIT B-7 PUBLLIC ARTS PANELS SPECIFICATIONS 1. Fabricate and install art panels on west and south exterior walls, including architectural metal banding at top of parapets on south side of building. Total $12,500.00 03/16/07 Ilsrv-ci-eng-0021users$IawhitelAll FileslURA i38thAvenuelWRCycleryVmprovementAgreement_Cyclery-4.doc - WHEAT RIDGE URBAN RENEWAL AUTHORITY RESOLUTION NO. 03 Series of 2007 A RESOLUTION OF TAE WHEAT RIDGE URBAN RENEWAL AUTHORITY EXTENDING THE DEADLINE FOR COMPLETION OF THE ELIGIBLE IMPROVEMENTS BY THE WHEAT RIDGE CYCLERY WHEREAS, the 38`h Avenue Comdor Redevelopment Plan provides for the redevelopment project consisting of the expansion of Wheat Ridge Cyclery (the "Cyclery") at 38`h Avenue and High Court; WHEREAS, the Cyclery has requested an extension of the deadline to complete its improvements (referred to as the "Eligible Improvements" in the agreement dated March 21, 2007, hereinafter referred to as the "AgreemenP'); and WHEREAS, the Wheat Ridge Urban Renewal Authority is in favor of extending the deadline for completion of the Eligible Improvement to November 1, 2007. NOW, THEREFORE BE IT RESOLVED by the Wheat Ridge Urban Renewal Authority that: 1. Extension of deadline. The deadline of October 1, 2007 set forth in Section 2.b. of the Agreement for completion of the Eligible Improvements is hereby extended to November 1, 2007. All other terms of the Agreement remain in full force and effect. DONE AND RESOLVED this day of 2007. WHEAT RIDGE URBAN REPQEWAL AUTHORITY By: ATTEST: Secretary APPROVED AS TO FORM: WHEAT RIDGE CYCLERY Jeff Parker, WRLJRA Attorney Wheat Ridge Urban Renewal Authority 7500 W. 29th Avenue Wheat Ridge, Colorado 80033 303-2352846 303-235-2857 (Fax) TO: Urban Renewal Authority Board Me bers FROM: Patrick Goff, Executive Director RE: Town Center Sales Tax Increment Allocation DATE: September 27, 2007 Executive Summan' The City of Wheat Ridge, Wheat Ridge 2020 (WR2020), and the Wheat Ridge Urban Renewal Authority (WRURA) are warking cooperatively to assemble property at the southeast corner of 44th Avenue and Wadsworth Boulevard for a future public/private redevelopment venture. Wheat Ridge 2020 has obtained options to purchase two properties located at 7340 and 7540 W. 44th Avenue. The options for both properties expire on December 31, 2007 and WR2020 has first right of refusal to purchase the properties. It will be advantageous for the City, WR2020 and the WRURA to assemble as many properties as possible in this development area in order to control the future development of this site. On August 27, 2007, the City Council aproved a$1:5 million loan to WRURA to purchase the property located at 7540 W. 44~ Avenue (Vern's propeRy). In addition, WRURA is in the process of negotiating a property acquisition loan from i" Bank Wheat Ridge to purchase both properties. A loan from is` Bank will require the WRURA to provide proof of a revenue source sufficient to pay annual debt service on the loan. Back¢round The City adopted the Wheat Ridge Town Center Urban Renewal Plan on December 14, 1981 which provided for the utilization of property and sales taY increment in the commercial area east of Wadsworth Boulevard, between West 38"' Avenue and West 44`n Avenue. The property tax increment expired after 25 years in 2006. Through an Intergovernmental Agreement (IGA) between the City and the WRURA on June 26, 2006, the sales tax increment was amended so that the maximum increment for the Wheat Ridge Town Center Project paid to the WRURA shall not exceed $100,000 in any fiscal year. In addition, the increment was extended to and including December 31, 2008. The WRURA can use property and sales taY incremental revenues from the Town Center Project to pay its financial obligations and debts related to urban renewal projects. This revenue source would be accepted by 1 S` Bank as a source of income to pay annual debt service on the loan. Staff will meet with City Council at the October 1 " study session to recommend that the sales tax agreement be amended to remove the $100,000 annual cap and that the agreement is extended to and including December 31, 2014. Sections 3.C.3 and 3.C.5 of the IGA will be amended accordingly. If the proposed amendments were in place during the 2006 fiscal year, the additional financial impact to the City would have been approximately $166,000 for a total sales tax increment to WRURA of $266,000. Staff estimates the 2007 additional financial impact to the City will be approximately $168,000 for a total sales tax increment to WRURA of $268,000. Attachment: IGA between the City and WRURA Intergovernmental Agreement This Intergovernmentai Agreement is entered into between the City of Wheat Ridge, Colorado (the "City") and the Wheat Ridge Urban Renewal Authority (the "Authority") as of the 26th day of June, 2006, together referred to as the "Parties.". In consideration of the mutual promises and covenants contained herein, the receipt and sufficiency of which are acknowledged, the Parties agree as foliows: 1. Puraose of Aareement This Agreement is entered into in order to establish the rights and responsibilities of the City and the Authority with respect to: (1) operational assistance and (2) the sales tax increment applicable to the Wheat Ridge Town Center. 2. Operational Assistance A. Emplovees. 1. Executive Director. The City Manager has retained or shall retain a Director of Community Development and/or a Director of Economic Development and the Authority has retained said person as the Executive Director of the Authority. When the Executive Director of the Authority is also an employee of the City, he/she shall maintain records of his/her time spent on an hourly basis when serving as Executive Director. The Authority shall be responsible for and pay the City for such time expended on Authority matters related to the development activities, based upon his/her salary and fringe benefits. 2. Authoritv Emplovees. The Authority has and may continue to retain the professionai services of other staff, consultants, advisors, experts and legal counsel as necessary and in accordance with the Urban Renewai Law. 3. Citv Emplovees. Upon request of the Director of the Authority, and subject to approval of the City Manager or his designee, City employees may be assigned to work for the Authority. Such approval of the Manager shall include the right to limit or to withhold assignment of City employees to work for the Authority if, in judgment of the City Manager, the assignment of such employee(s) to work for the Authority is impairing the employee(s)' ability to complete his/her City duties. While performing services for the Authority, such City employees shall coordinate their services with the Director. 4. Emalovment Records. While serving as employees for or providing services to the Authority, records shall be maintained of such City employees' work, time and services. The expenses of such services attributable to the - Authority shall be billed to the Authority by the City. WRURAIGA ATTACHMENT 1 B. Personnei Actions Related to Employees 1. Notwithstanding Section 2.A.1, the selection, termination and other personnel actions related to any person performing the functions of the Executive Director of the Authority, who is not a City employee, shall be made by the Board of Commissioners of the Authority. The Board of Commissioners of the Authority agrees to consult with the City Manager prior to the retention of an Executive Director regarding methods and areas of cooperation between the Authoriry and the City relating to duties of the Executive Director vis-a-vis contemporaneous City duties, if any, and utilization of other City employees. 2. The selection, description of duties and services, termination and other personnel actions related to all other employees, consultants, experts, attorneys and advisors of the Authority shall be made by the Authority's Board of Commissioners. 3. Personnel actions relating to City employees shall in no manner be affected by this Agreement. In the event of any personnel action relating to any City employee while working under the terms and provisions of this Agreement, such action shall be subject to the City's personnel rules and regulations. C. Salaries and Procedures 1. The salary of the Executive Director of the Authority shall be established by the Board of Commissioners of the Authority; provided, however, in the event the Executive Director hired by the Authority is aiso a City employee, the Authority agrees that his/her total salary shall be in accordance with the salary set by the City for the DirectoYs position with the City; and the portion thereof attributable to the Authority shall be allocated antl paid as provided in this Agreement. 2. The salaries/fees of all other employees, consultants, experts, attorneys and advisors of the Authority shall be established by the Board of Commissioners of the Authority. Any Authority employee may be included in benefit programs available to City employees and the Authority shall pay for the costs thereof. D. Other Services 1. The City may provide the Authority with such other services as may be required in order to perform its urban renewal functions including, but not limited to, accounting, financial and budget management, planning services z and engineering services; provided, however, that nothing hereirt shall be construed as prohibiting the Authority from contracting with or retaining third parties to provide ali or a portion of any services. Records of all expenses and salaries related to such City services shall be maintained, and the Authority shall be billed by the City and pay the City therefore. 2. Annual or any special financial audits shall be performed by the City's independent auditor. All costs of any such audit or financial services shall be billed to and paid by the Authority. E. Office Space: Furnishinqs The City may make available appropriate office space and office equipment to the Authority. All furnishings, equipment and supplies for the Authority may be acquired by the Authority or rented from the City. All furnishings and equipment loaned or rented to the Authority by the City shall be billed to and paid by the Authority and remain the property of the City. All furnishings and equipment acquired by the Authority shall become the property of the City upon the dissolution of the Authority. F. Ooerations Inteqration 1. Citv Codes. The Authority shall comply with applicable City ordinances, codes, rules and regulations related to the development and/or redevelopment of the urban renewal areas, except as provided otherwise in the urban renewal plans and the Colorado Urban Renewal Law. 2. Reports to Council. The City Council shall be informed of the activities, functions, operations, legal processes and financial/budgetary administration and condition of the Authority on a periodic basis and as requested by CounciL 3. Meetin4s. The Board of Commissioners and City Council shall meet at the request of the Council to communicate and coordinate activities, functions and share ideas and actions related to carrying out urban renewal and/or redevelopment projects. 4. Powers of Authoritv. The parties acknowledge and agree that the Board of Commissioners shall exercise all powers provided in the Urban Renewal Law and as provided in the urban renewal (redevelopment) plans adopted by Council. G.Insurance The Authority shall pay for its own public liability insurance and other - insurance requirements; provided, however, that the City and the Authority agree 3 to include the Authority as an additional separate insured within the existing liability insurance coverages as a part of the services to be provided by the City to the Authority under the terms and provisions of this Agreement. H. Reimbursement of Citv The Authority shall reimburse the City for salaries, rents and costs incurred by the City in providing employees, insurance, equipment, facilities, services and supplies as provided herein. The City shail file invoices with the Authority each quarter for employees, facilities, equipment and services rendered during the immediately preceding quarter, including therein all costs of providing same. Such invoices shall be in sufficient detail and include all costs incurred by the City and shall sufficiently designate the types of services performed or provided by the City so that the Authority might properly determine the funds to which costs are being charged. Upon approval of such invoices by the Commissioners, the Authority shall make arrangements with the City to pay said invoices. It is the intent of the parties that the expenses be paid to the City at the earliest practicable time; however, the parties agree that this obligation of the Authority shall not impair the ability of the Authority to obtain debt financing, if necessary. Therefore, the financial obligation created hereunder shall be subordinated to any financial obligations, bonds, notes or other debt financing issued by the Authority. The total funds due the City by the Authority as provided herein shall bear interest at a rate agreed upon by the City and the Authority. It is the intent of the parties that the said principal and interest shali be paid in full by the Authority to the City from funds available to the Authority, including but not limited to, sales and property tax incremental funds. 3. Wheat Ridae Town Center Sales Tax Increment A. Sales Tax Increment Defined The City imposes a sales tax of 3% on retail sales within the City. The City has adopted the Wheat Ridge Town Center Urban Renewal Plan which was amended in 2000, which provides for utilization of a sales tax increment in the commercial area east of Wadsworth Boulevard known as the "Town Center ProjecY". Sales taxes collected on retail sales within the Town Center Project Area, as amended and as shown in Exhibit 1, are subject to an allocation formula whereby a portion of such sales taxes in excess of a defined base represents the "increment," or increased sales tax revenue, attributable to new retail activity within the Town Center Project. This increment is shared with the Authority pursuant to intergovernmental agreement between the Authority and the City. The City's "base" for calculating the increment was established in January 1981 at $528,330. B. Town Center Urban Renewal Plan Amendment In 2000, the City Council adopted an amendment to the Town Center Urban Renewal Plan which removed the "northern half' of the urban renewal area from urban renewal designation. The deleted area was subsequently included in the Wadsworth Boulevard Corridor Redevelopment Plan. C. Sales Tax Increment Allocation The Parties agree that the Town Center Project sales tax increment, as defined at Section 3.A hereof, shall be allocated between them as follows: 1. For all sales after January 1, 2006 irrespective of actual sales tax receipts, the City shall retain an amount equal to the sales tax receipts attributable to the Safeway store for the period November 1, 1994 through October 31, 1995. 2. After accounting for this retainage, the City and the Authority shall each receive 50% of the remaining sales tax increment from the Wheat Ridge Town Center Project. 3. The maximum sales tax increment for the Wheat Ridge Town Center Project paid to the Authority shall not exceed $100,000 in any fiscal year. The Authority's share of Town Center sales tax increments shall not exceed that figure in any case. 4. On or before June 27, 2006, the City shall make a one time payment to the Authority in the amount of $100,000, to account for outstanding obligations of the Authority and in consideration of the mutual revocation of the previous agreements related to allocation of the sales tax increment. 5. The sales tax increment for the Wheat Ridge Town Center is hereby extended to and including December 31, 2008. D. Ratification of Prior Actions The City and the Authority waive any claim for under or overpayments between them for all years prior to 2006. The City and the Authority each hereby ratify all prior actions taken by the other in reliance on prior intergovernmental agreements between them. 4. Citv and Authoritv Separate Nothing in this Agreement shall be interpreted in any manner as constituting the - City or its officials, representatives, consultants or employees as the agents or employees of the Authority, or the Authority or its officials, representatives, consultants 5 or employees as the agents or employees of the City. Each entity shali remain separate, subject to the cooperation and coordination of each entity's respective duties and powers with regard to urban renewal (redevelopment) activities. Neither party shall hereby assume the debts, obligations or liabilities of the other. The Authority shall be responsible for carrying out its duties and functions in accordance with the Colorado Urban Renewal Law, the urban renewal plans and other applicable laws and regulations. 5. Effect on Prior Aqreements All existing/prior cooperation agreements and/or intergovemmental agreements between the City and the Authority are hereby rescinded. The terms of this Agreement shall control the relationship between and activities of the City and the Authority. 6. Termination This Agreement may be terminated by the mutual consent of the parties at any time after giving at least (30) days written notice of intention to so terminate; provided, however, termination of this Agreement shall not release the Authority from its obligation to pay the funds due the City as provided herein, unless such obligation is specifically terminated by the City. 7. No Debt Nothing herein shall be construed as constituting any multi-year fiscal obligation within the meaning of Article X, Section 20 of the Colorado Constitution, it being the intention of the parties that all fiscal obligations herein be subject to annual appropriation. 8. Further Assurances The Parties agree to take such further acts as necessary to implement the provisions of this Agreement. IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first set forth above. WHEAT RIDGE URBAN RENEWAL AUTHORITY By: dd" Chair STATE OF COLORADO County of Jefferson ss. The foregoing instrument was acknowledged before me this ~0 54( day of 2006 by~,,-!l ar-G)Ylaw,c as Na 'r of the Wheat idg rban Renewal Authority. Notary Public ~ "•,F ~FQ.. • a~TaRl- My Commission expires: 0(/841G . CITY OF WHEAT RIDGE, COLO By: d ~ ~ & J ry iTullio, Mayor ATTESl : ~ amela ACle- FORM: STATE OF COLORADO ss. County of Jefferson The foregoing instrument was acknowledged before me this day of ej04Lt- , 2006 by Jerry DiTullio as Mayor and Pamela Anderson as City Clerk of the City of Wheat Ridge, Colorado. Witness my hand and official seal. My Commission expires: l.2/.2opV Notary Public ~OTAIpk~ ~'UB1.~~+ _ bJy OomA*n BapMM 11l1M E,:HIBIT 1 0 _ F ; ~ C P p u O f. ¢ : 6 F ( 4 E 9 a 9 a 0 ~ "1 E 6 A 1 J.. W ]9f N .VE 5 Q a ~ ¢ O 3 O T 1 R I ~ I5 6 a .z 7--M . A N.T.S. R R - um w~o ~ S - - wa ~ S 8 .R 8 R S ~ ¢ R s W x a ~ R R ~ ~ 4M RN ~ ~ I ~]50 ~3111 n g 1-F W JBTH~ . S Y ~ Y ~ C ( I "I Right-of-way ~ Property Line Sales Tax Increment Area Wheat Ridge Urban Renewal Authority 7500 W. 29th Avenue Wheat Ridge, Colorado 80033 303235-2846 303-235-2857 (Fax) TO: Urban Renewal Authority Board Members FROM: Patrick Goff, Executive Director-N RE: WRURA Board Structure DATE: September 27, 2007 Section 25-24 of the Wheat Ridge Municipal Code cunently defines the structure of the Urban Renewal Authority (URA) to consist of seven members, one member from each council district and three at large members. The at large members may include one city council member. Staff received dixection at the September 10, 2007 council meeting to bring forth an ordinance to amend this section of the code to allow at large members of the URA to include one "elected city official (excluding the Mayor)" and/or one "non- resident individual who owns a licensed business in good standing located within the city." Council Bill No. 24, an ordinance amending Article II of Chapter 25 of the Wheat Ridge Code of Laws concerning Urban Renewal, was approved by City Council on first reading at the September 24~' City Council meeting. A public hearing and second reading is scheduled for October g`n Attachments: Council Bill No. 24 CITY OF WHEAT RIDGE, COLORADO INTRODUCED BY COUNCIL MEMBER Council Bill No. 24 Ordinance No. Series of 2007 TITLE: AN ORDINANCE AMENDING ARTICLE II OF CHAPTER 25 OF THE WHEAT RIDGE CODE OF LAWS CONCERNING URBAN RENEWAL WHEREAS, the City of Wheat Ridge, acting through its City Council (the "Council"), has authority pursuant to Article XX, Section 6 of the Colorado Constitution and, inter alia, C.R.S. § 31-15-103 to protect the health, safety and welfare of the residents of the City; and WHEREAS, the Council has previously created the Wheat Ridge Urban Renewal Authority (the "Authority") pursuant to C.R.S. 31-25-101 et seq., by the adoption of Article II of Chapter 25 of the Wheat Ridge Code of Laws; and WHEREAS, the Council recognizes that members of the City's business community have an interest in the matters addressed by the Authority and would be productive members of the same; and WHEREAS, the Council also recognizes that all elected City officials, with the exception of the Mayor, should be eligible to serve on the Authority. NOW, THEREFORE, BE IT RESOLVED by the Wheat Ridge City Council: Section 1. Code of Laws Section 25-24 is hereby amended to read: Section 25-24 Same-Appointment of members; number. The authority shall consist of seven (7) members, one (1) of such members being from each of the existing, or hereafter altered, city council districts, and three (3) members to serve at large. The at large members may include one (1) ELECTED CITY OFFICIAL (EXCLUDING THE MAYOR), AND/OR ONE (1) NON-RESIDENT INDIVIDUAL WHO OWNS A LICENSED BUSINESS IN GOOD STANDING LOCATED WITHIN THE CITY. Each appointment to the authority shall be made by the mayor subject to approval by majority vote of the entire city council. The term of office of each member shall be five (5) years. Any member (WITH THE EXCEPTION OF A NONRESIDENT BUSINESS OWNER MEMBER) who shall change his personal residence to an address outside the city or outside the district he represents shall cease to be a member of the authority and his seat shall automatically be deemed vacant as of the date on which he ceased to be a resident of the city or of the district. ANY NONRESIDENT BUSINESS OWNER MEMBER WHOSE BUSINESS IS NO LONGER IN GOOD STANDING WITH THE CITY OR WHOSE BUSINESS CEASES OPERATIONS OR MOVES OUTSIDE THE CITY LIMITS SHALL CEASE TO BE A MEMBER OF THE AUTHORITY AND THE MEMBER'S SEAT SHALL BE DEEMED VACANT AS OF THE DATE ATTACHMENT 1 OF THAT OCCURRENCE. A member whose term has expired shall continue to hold office until his successor has been appointed and has qualified. Terms of office shall be staggered so that the term of at least one (1) member shall expire each year. The city council may appoint any number of ex-officio nonvoting members to serve for terms at the pleasure of the city council. Section 2. Safetv Clause. The City Council hereby finds, determines, and declares that this Ordinance is promulgated under the general police power of the City of Wheat Ridge, that it is promulgated for the health, safety, and welfare of the public and that this Ordinance is necessary for the preservation of health and safety and for the protection of public convenience and welfare. The City Council further determines that the Ordinance bears a rational relation to the proper legislative object sought to be attained. Section 3. Effective Date. This Ordinance shall take effect fifteen (IS) days after final publication, as provided by Section S.ll of the Charter. INTRODUCED, READ, AND ADOPTED on first reading by a vote of to on this _th day of September, 2007, ordered published in full in a newspaper of general circulation in the City of Wheat Ridge and Public Hearing and consideration on final passage set for , 2007, at 7:00 o'clock p.m., in the Council Chambers, 7500 West 29th Avenue, Wheat Ridge, Colorado. READ, ADOPTED AND ORDERED PUBLISHED on second and final reading by a vote of to, this _ day of September, 2007. SIGNED by the Mayor on this day of , 2007. Jerry DiTullio, Mayor ATTEST: Michael Snow, City Clerk Approved As To Form Gerald E. Dahl, City Attorney First Publication: Second Publication: Wheat Ridge Transcript Effective Date: