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Home My WebLink About11/06/2007AGENDA WHEAT RIDGE URBAN RENEWAL AUTHORITY November 6, 2007 Notice is hereby given of a Public Meeting to be held before the City of Wheat Ridge Urbau Renewal Authority on Tuesday, November 6, 2007, at 6:00 p.m., in the City Council Chambers of the Municipal Building at 7500 West 29th Avenue, Wheat Ridge, Colorado. Call the Meeting to Order 2. Roll Call of Members 3. Approval of Minutes - October 2, 2007 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. Staff Updates b. Completion of Phase I Environmental Assessment-44`h & Wadsworth c. 2008 Budget Discussion 6. Adjournment MINUTES WHEAT RIDGE URBAN RENEWAL AUTHORITY October 2, 2007 CALL THE MEETING TO ORDER The meeting of the Wheat Ridge Urban Renewal Authority was called to order by Chair Williams at 6:10 p.m. in the council chambers of the Municipal Building, 7500 West 291h Avenue, Wheat Ridge, Colorado. 2. ROLL CALL OF MEMBERS Authority Members Present: Rick Adams James Bahrenburg Walt Pettit Tom Radigan Larry Schulz Terrell Williams Authority Members Absent: Janet L,eo Also attending: Pah-ick Goff, Deputy City Manager JeffParker, WRURA Attorney Ann Lazzeri, Secretary 3. APPROVAL OF MINUTES - September 5, 2007 Rick Adams offered the following correction to the minutes of September 5: Ron Osborn should be changed to Rob Osborn on the first page. It was moved by James Bahrenberg and seconded by Rick Adams to approve the minutes of September 5, 2007 as amended. The motion passed with Larry Schulz and Walt Pettit abstaining. 4. PUBLIC FORUM Charles Durbin was present but did not address the Authority. 5. NEW BUSINESS A. Update on 44th and Wadsworth Property Assemblage Wheat Ridge 2020 has commissioned a Phase I assessment of the properties to address environmental conditions of the properties at 7340 . and 7540 West 44`h Avenue. The report is estimated to be concluded and presented to WR2020 by mid-October. It is the recommendation of staff WRURA Minutes - 1- October 2, 2007 that the option ageement and negotiations to purchase the Vohoska property be put on hold until WR2020 and WRURA have had a chance to review the Phase I environmental report The Authority agreed with this recommendation. lf a Phase II assessment becomes necessary, the proper[y owner will be contacted regarding an extension for the option. Direction was given to Mr. Goff to find out how long a Phase II assessment would take. Staff continues to negotiate with 1 s` Bank Wheat Ridge for a property acquisition loan in the amount of $4 million for the properties located at 7340 and 7540 West 44th 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. B. Resolution 03-2007, Approving Amendments to WRURA Improvements Agreement with Wheat Ridge Cyclery WRURA entered into an Improvements Agreement with Wheat Ridge Cyclery on March 20, 2007 to assist in blight prevention and elimination by providing additional funds to the redevelopment of the Cyclery property. The Cyclery has requested a one-month extension (from October 1, 2007 to November 1, 2007) for the remainder of eligible improvements (specifically the public arts panels). It was moved by Larry Schulz and seconded by James Bahrenberg to approve Resolution No. 03, Series of 2007, a resolution of the Wheat Ridge Urban Renewal Authority extending the deadline to November l, 2007 for completion of the eligible improvements by the Wheat Ridge Cyclery. The motion passed unanimously. C. Town Center Sales Tax Increment Allocation Council agreed to amend agreement to remove cap and extend Sales Tax Increment Allocation through 2014. This will give WRURA additional revenues to pay debt service on future loans or other urban renewal projects. The amendment will be considered at the City Council meeting of October 22, 2007. D. WRURA Board Structure Staff received direction at the September 10, 2007 City Council meeting to bring forth an ordinance to amend Section 25-24 of the Wheat Ridge Municipal Code to allow at-large members of WRURA to include one elected city official (excluding the mayor) and/or one non-resident WRURA Minutes - 2- October 2, 2007 "individual who owns a licensed business in good standing located within the ciry. The ardinance (Council Bill No. 24) was approved by City Council on first reading at the September 24`1' meeting. A public hearing and second reading is scheduled for October 8"'. There was discussion about the definition of "individual who owns a licensed business" in the ordinance. Direction was given to Patrick Goff to contact Gerald Dahl, City Attorney, regarding clarification of the definition. 6. ADJOURNMENT The meeting was adjourned at 7:25 p.m. The next meeting will be held October 30, 2007. Terrell R. Williams, Chair Ann Lazzeri, Secretary WRURA Minutes - 3- October 2, 2007 Wheat Ridge Urban Renewal Authority 7500 W. 29th Avenue Wheat Ridge, Colorado 80033 3032352846 303-2352857 (Fax) TO: Urban Renewal Authority Board Members FROM: Patrick Goff, Executive DirectorD~ RE: Staff Updates DATE: November 2, 2007 1. Ordinance Amending Section 25-24 Appointment of Members 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 second reading as amended and became effective November 2, 2007 (Attachment 1). The amendment (underlined below) was made based on comments from the URA Board to define an "individual" more clearly. NON-RESIDENT INDIVID UAL WHO OWNS AN INTEREST IN OR IS A CORPORATE OFFICER OF A LICENSED BUSINESS IN GOOD STANDING LOCATED WITHIN THE CITY 2. Option to Purchase Assignment The attached Option to Purchase Assignment was received from WR2020 on November 1, 2007. WR2020 is assigning the option to WRURA to purchase the Karl property located at 7340 W. 44t' Ave. (Antique Mall) for the amount of $7,500.00. This option consideration shall be credited to the purchase price at settlement. The option expires on January 31, 2008 (Attachment 2). 3. Financing Negotiations Staff continues to negotiate with 151 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`h Avenue and other potential property acquisitions in the azea. In addition, Staff will be meeting with Jefferson County and the Colorado Housing and Finance Authoxity (CHFA) to investigate the use of Community Development Block Grant funds and New Market Tax Credits as additional financing sources (Attachment 3). 4. Wheat Ridge Cyclery Improvements Agreement Staff has been notified by the Cyclery that the Public Arts Panels will not be installed by the required completion date ofNovember 1, 2007 (as amended by the V✓RURA at the October 2, 2007 meeting). The Cyclery is in the process of installing the panels and estimates they will be installed by December 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. Staff recommends that the WRURA amend the current Improvements Agreement with Wheat Ridge Cyclery to change the agreed upon completion date for Eligible Improvements from November 1, 2007 to December 31, 2007 (Attachment 4). CITY OF WHEAT RIDGE, COLORADO INTRODUCED BY COUNCIL MEMBER BERRY Council Bill No. 24 Ordinance No. 1403 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 Artic►e 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 offcials, 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 inembers; 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 AN INTEREST IN OR IS A CORPORATE OFFICER OF A LICENSED BUSINESS IN GOOD STANDING LOCATED WITHIN THE CITY. Each appointment to the authority shall be made by the mayor subject to approvai by majority vote of the entire city council. The term of office of each member shail 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 ATTACHMENT 1 THE MEMBER'S SEAT SHALL BE DEEMED VACANT AS OF THE DATE 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 C/ause. The City Council hereby finds, determines, and deciares 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 shali take effect fifteen (15) days after finai publication, as provided by Section 5.11 of the Charter. INTRODUCED, READ, AND ADOPTED on first reading by a vote of 8 to 0 on this 240 day of September, 2007, ordered published in full in a newspaper of general circulation in the City of Wheat Ridge and Pubiic Hearing and consideration on final passage set for October 8, 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 7 to 0, this 8th day of October, 2007. SIGNED by the Mayor on this ~~a day of f' Ilio, TTEST- Michael l Snow, City Clerk 2007. Appr d As To Form Gerald E. Dahl, City Attorney First Publication: September 27, Second Publication: october is, Wheat Ridge Transcript Effective Date: xovember z, 2007 2007 2007 Page 1 of 2 Patrick Goff From: Gerald Dahl [gdahl@mdkrlaw.com] Sent: Wednesday, October 03, 2007 3:51 PM To: Patrick Goff Subject: RE: Ordinance Concerning Urban Renewal The terms are not defined elsewhere. As written, "individual" would mean a natural person who owns a business. I think that any part ownership would be fine; not restricted to sole proprietorships. Regarding officers of corporations, that is tougher, and I would say that simply being an officer is not being an owner. I had understood that the idea was to allow individuals "who owned a business in Wheat Ridge" to serve. If we need to create a definition and graft that on, we can do so. Gerald E. Dahl gdaW@mdkrlaw.com Direct: 303-493-6686 Munay Dahl Kuechenmeister & Renaud LLP 2401 15th Street, Suite 200 Denver, CO 80202 Phone: 303-493-6670 Fax: 303-477-0965 This electronic mail transmission and any accompanying documents contain information belonging to the sender which may be confidential and legally privileged. If you are not the intended recipient of this e-mail, you are hereby notified that any dissemination, distribution or copying of this e-mail, and any attachments thereto, is strictly prohibited. If you have received this e-mail in error, please notify me immediately by telephone or e-mail and destroy the original message without making a copy. Thank you. From: Patrick Goff [mailto:pgoff@ci.wheatridge.co.us] Sent: Wednesday, Odober 03, 2007 11:33 AM To: Gerald Dahl Subject: Ordinance Concerning Urban Renewal Jerry, I updated the URA last night about this Ordinance. They had a question about how the following amendment is defined: "NON-RESIDENT INDIVIDUAL WHO OWNS A LICENSED BUSINESS IN GOOD STANDING LOCATED WITHIN THE CITY." - Specifically concerning the definition of "Non-ResidenY" and "Individual"... are these defined elsewhere in the Code? Would this limit appoinhnents to the URA Board to only sole proprietors or would this include officers of corporations, etc, or would this restrict us in other ways we may not be thinking I 1/02/2007 Page 2 of 2 about? I thought this was a valid question that I should bring to you... Thanks Patrick Goff Deputy City Manager 7500 W. 29th Ave. Wheat Ridge, CO 80033 303-235-2805 303-234-5924(fax) www. ci. wheatri d ge. co. us 11/02/2007 pURCHASE OPTION AGREEMENT This agreement dated the 3~Sr day of _JMjjA-9-y 2007, is by and betwcen Milloie E_ Karl whose principal Place af t'eside°ce is 149 Badger Lane, Bailey, Colorado (herein collectively referred to as "SeIler°) and Wheat RidSe 2020 whose principal address is 4350 Wadswor[h Blvd., P.O. Box 1268, Wheat Ridge, Colorado (herein referred to as "Bayer"). For good and valuable consideration, the receipt and sufficiency of wluch is hereby acknowledged, SELLER hereby grants to BlJ1'ER an exclusive option to purchase the real property described as follows: 7340 West 44th Avenue Wheat Rid¢e Jefferson Coun Colorado. Parcel ID No. 39-234-00-096 more fully desc.`ribed in attached Eictubit A(herein after referred to as the "Property") slrictly according to the terms and conditions contained with in this ageement (herein after referred to as the "Option to Piu+chase Agreement"). 1. TERM OF OP1'ION. This option to purchase sba11 commence °n the date of execurion of ttris agreement, and shall expire at 12 o'clock midnigtR, Three -Hu°dred Sixty-Five (365) days from the date of execution of this agroement • 2. ASSIGNMENI' OF OPTION. This option to purchase is assignable. The Buyer may assign, delegate, transfer or convey of this Option to Purchase Ageement without the Seller's express wril#en Parmission. 3, BUYER'S RIGAT TO EXERCISE OPTION. Buyer may only exercise this option to purchase by delivering w►itten notice of intent to purchase to Seller. Such notice must specify a settlement date ( i.e. closing date) to oc.cm' an or before the expuation date of this agreement as set forth in ParagraPh 1 herein above. 4 BiJYER'S RIGHTS OF CANCELLATION. Buyer may cancel this Option to Purchase Ageement by providing written notice to the Seller, on or before thirty (30) days prior to the expiration date of this agreement. Buyer's express written notice to cance1 may be u-anSmitted by mai1, facsimile, and eleclronic mail to Seller. Receipt of delivery is not necessary to effecwate Buyer's notice of cancellation to Seller. 5. SELLER'S RIGHT'S TO CANCELLAI'ION. Seller may cancel this Option to purchase Agreement by providing written notice to the Buyer, on or before thirty (30) days prior to the expiration date of this agreement. Should Seller exercise its right of cancellation, Buyer shall have ten (10) days aRer receipt of notice of cancellation from Seller to exetcise the Buyer's riShu under this agree°le°t' t° Purchase' or notify Seller of the Buyer's acceptaz►ce of Seller's cancellation. Sellees expiess written notice to cancel may be transmitted by mail, facsimile, and electmnic mail to seller. Receipt of delivery is necessary to effectuate adequate n°tice to Buyer. 6 OPTION CONSIDERATION. Buyer shall remit option consideration in the sum of $7,500 (SeYen_Thoysand Five-Hundred dollazs) to an escrow account to be held by Buyer's Counsel, or escrow agent, upon execution of this Option to Auchase Agreement. Said Consideration is refizndable to Buyer, in full, should the Seller exercise its right of ATTACHMENT 2 cancellation, and Buyer accepts the Seltefs cancellation, as Pec'mitbed herein above. In the event Buyer timely exercises this opt►on and effectuate the comeyance of the Property, the option consideration s6a11 be credited to the ptuchase price at settlement. The option consideration shall not be cefunded if Buyer fails to exercise this option, or canceis the option under its rights of cancellet►on- 7. PURCHA.SE PRICE. The total purchase price for the Properry ptusuant to this Option to Purchase Ag'eement is One Mitt►°n Nine Hundred Fifty Thousand Dollazs ($1,950,000.00)- 8, GZOSING AND SETTLEMEN'i'. Ciosiag and settlement s6all be at a ritle company designated by the Buyer. All closing costs, except for the cost of extended wverage tiUe insurance, and any points, fees andlor charges imposed by the Buyer's lender shall be the sole responsibility of the Buyec. Seller shall only be responsible for its pro-tated shaze of the ad valorem taxes due as of the date of closing. TT IS TfE BUYER'S SOLE RESPONSIBILITY TO ARRANGE FINANCING FOR THE TRANSACTIONS. SELLER HAS MADE NO REPRESENI'ATIONS TO BUYER REGARDING THE AVAILABILITY OF FINANCING OF BIJYER'S ABILITY TO QUALIFY FOR FINANCING. 9. REMEDIES UPON DEFAi7LT. (a) In the event of aay defauit by Buyer of the tertns of Uus Option to Purchase Agreement, Seller shall have the right to terminate this OPtion to Purchase Agreement and all rights hereunder by giving written notice of terminahon. Should Buyer default, Buyer relin4irishes all nghts t° the °PU°° c°nsiderariony and said consideration shall be paid to Seller_ (b) In the event of any such default by Seller of this Oprion to Purchase Agreement, Buyer shall have the ophon to terminate thts Ophon to Purchase Age,ement and ail rights hereimder bY 81vin8 written notice of termination or to such strict performance of This Option Agreement- Sellee s default entitles Buyer to a complete iefund of the option consideration if the remedY of strict performance is not Pmwed- 10. CONIISSIONS_ lhere will be no real estate c°nunissl°°S pazd as a result of this transaction 11. MODIFICATION. Any n►odificatian of any portion of tlris Option to Purchase Agreement must be made in writing signed by both pmties. 12. REFERENCES IN WORDING. Phual references made to the parties involved in this Option to Purchase Ageement maY also be singular, and single references may be plural. These references maY alsO aMY tO Selles and Buyer heQS, eacecutoss, adminishatots, successrns or assigns. 13. TI1V~ OF PERFORMANCE. Time is of the essence with rcsPecrt to this Option to Purchase Agraemmt 14. ENTIRE AGItEEMENT. As written, tlus Option to Puerhase Agreement constitutes 2 vcaft aaze: t 1/8/06 Option 7540 W. 44'~ Rl0/// the finai, entire agreement between the Buyer and Seller. 'Chey have made no further promises of any kind to one another, nor have they reached any other understandinSs, either written or oral. . ACKNOWLEDGMENT. 3he uudersigned Buyer hereby xknowledge that it 6as read 15 tius Option to Purchase Agreeme°t, umderstauds it, aggress to it and has been aven an executed copy. This OPtion to Purcbase ASreement may be recorded in the office of the Clerk and Recorder for Iefferson Count3'. Buyer aud Seller are advised, and had opportunity to seelc advice of legal, cac, technical experase Professionals of their own selection and any othec counsel of their choosing concemII'S dfis C°IIuaa p°Or t° signing. 16. CHOICE OF LAW AND VENUE. Tlris ~°II to Punchase Agreement s6all be construed accoraing to the laws of die 5tate of Colarado and is executed IIJeffets°° Countp, Cola~dc+- All P~~ ~ee tt~at the venue for anydtwute lorado. Oprion to Pu~h'ese Agee°te°t s6a11 be Jefferson CountY, ~ ~ WITNlw~ ~ g this WHEitEpF, ihe Pacties hereto,. intend'►ng to be tegaliy bound heieby, have I herewder set dieir hands and seaLs on tLis da3' Of 12,007. SELLER Mi 1 ie V. Kar1 Date: BUYER: WHEAT RIDGE 2020, INC_ By: ATTEST: By:: praft date: 11/8l06 Option 7540 W. 44tb a inui new markets tax credit program Page 1 of 1 y.; mlomda housing and flnance autharlty i , . . r ~ a.. _ ~hr'Q " . , • ° . . , Hnonck7g the pbces where peaOe 7ive avd wak ~ new markets tax credit program ~ aW ~rc~.: New Markets Tax Colorado has an ezcitinq new program that will help our Credit Program mmmunities grow. The New Markets Tax Credit Program (NMTC), created as part of the Community Renewal Tax Relief Act of 2000, HelpfW Links New Markecs 7ax Creait encourages private capital investmen[ in low inmme communities by Program FAQs provldin9 taz credlts to investors. Denver office oeemnomic ()evelaVment New Markets Tax Credi[ The Colorado Housing and Finance Authority, in partnership with the comrado enterprise Funa Application City of Denver and the Cobrado Enterprise Pund, formed the ~oFi Fo„d website Commencs? Colorado Growth and Revitalization (CGR) Fund LIC, to appty for NMTCs. In 2005, the CGR Fund was awarded an allocation of $40 million.The CGR Fund partners are working closely with investors to identify and fund NMTC-eligible projects tha[ will have significant mmmunity and emnomic development benefts across Colorado. . The Fund will target 80% of its capital in major urban communities, and 20% in rural communities. The purpose of the NMTC is to spur private investment in low- income urban and rural communities. The program is based on the idea that there are viable business opportunities in low-income communities and that a federal tax credit would provide attractive incentive to increase the flow of investment capital to such areas. This investment provides much needed capital to assist in the economic revitalization of underserved communities by creating new jobs and financing small businesses. O2007 Cobrado Housing an.d Finance Authority en espznol privacy & ecurity policy a<cessibility mntact Business Finance 303.297J329 or 1.800.877.2432 ext329 Fax 303.291.5709 ATTACHMENT 3 http://www.chfainfo.com/business/nmtc/nmtc.icm 11 /02/2007 FAQs and helpful links Page 1 of 3 minrado housing and finance authartty ~ - - T HrarcGny tire ptoces where peaple 71ve and tsrork chfa 1 new markets tax credit program faqs New Markets Tax Credit Program Frequently Asked Questions Helpful Links New Markets Tax bVhat is the New Markets Tax Credit (NMTC) Program7 Credit Program FAQs How docs the NMTC Pro9ram work? oen,er office or ewnoimc New Markets Tax Credit W hat is a CDE7 Development Application How do L Flnd out what census tracts In my area qualiPy? coio.ado ente,prise wnd Who 6enefits hom NMTCS? ~oFi Funtl Websi[e Comments? Since CHFA is a Non-Proflt Or9anization, how can it apply for an albcation of NMTCs? What kinds of development activity will the CGR Fund pursue with funds se[ured throu9h NMTC investments? Can the NMTC be used for housing? What businesses quality as Active Low-income Community eusinesses for purposes of the New Markets Tax Credits? Who can invesY in a CDE? What triggers potential recapture of the credit? VJhat is the [ime limit for makin9 NMTC investments? Who will ensure mmpilance with NMTC regulatlons? What is the New Markets Tax QeAit (NMTC) Program? Part of the Community Renewal Tax Relief Act of 2000, the New Markets Tax Credit Pro9ram will spur approximately $15 billion in investments into priva[ely manaqed investment institutions. In turn, [hese privately managed investment institutions, or Community Development Entities (CDES), will make loans and capital investments in businesses in underserved areas. By making an investment in a CDE, an individual or corporate investor can receive a tax credit worth 39 percent (30 percent net present value) of the initial investment, distributed over 7 years, along with any anticipated return on their investment in the CDE. How does the NMTC Program work? The NMTC Program permits taxpayers to claim a credit against Federal income taxes for Qualified Equity Investments (QEIS) made to acquire stock or a capital interest in designated Community Development Entities (CDEs). These designated CDEs must use substantially all (defined as 85 percent) of these proceeds to make qualified Low-Income Community Investments (QLICIS). The investor, or a subsequent purchaser, is provided with a tax credit claimed over seven years. The investor receives a taz credit equal to five percent of the total amount paid for the capital interest or stock purchase over the first three years. For the final four years, the value of the tax credit is six percent annually. The Community Development Financial Institutions Fund (CDFI Fund) certifies CDES on an ongoinq basis, and allocates NMTC Allocations annually to select CDES through a competitive application process. What is a CDE? The CDFI Fund has the following requirements for qualification as a CDE. A CDE is any duly organized entiry treated as a domestic corporation or partnership for federal income tax purposes that: (a) has a primary mission of serving, or providing investment capital for, low-income communities or low-income persons; (b) maintains accountability to residents of low-income communities through their http://www.chfainfo.com/business/nmtc/nmtc_ faqs.icm 11/02/2007 FAQs and helpful links representation on any governing board of the entity or any advisory board to the entity; and (c) has been certified as a CDE by the CDFI Fund of the US Department of Treasury. How do 7 find out what census tracts in my area yua!ify? Investors or business owners interested in determining what census tracts qualify as Low-Income Communities should use the Community Development Financial Institutions Fund online New Markets Tax Credit Help Desk or call John Plakorus at CHFA, 303.297J494. Who benefits from NMTCs? eusinesses, investors, and communities will benefit from NMTCs. The NMTC program was designed to make investment capital available to businesses in qualirying low-income communities, to create jobs and spur additional economic development. The Federal Government created the NMTC as an inducement to private invesrors to open the flow investment capital into these communities. These tax credits, when considered along with the potential return on their investment in the CDE, create a substantial financial benefit for the investors as welL Since CHFA is a Non-Profit Organization, how can it applY for an aliocaCion of New Markets Tax CrediCS? eecause NMTCs can only be offered to investors that purchase stock or capital in a CDE, only for-profit CDEs may facili[a[e NMTC transactions. However, a non-profit entity may apply for a NMTC allocation with the intention of transferring the allocation to one or more for-profit subsidiary CDES. CHFA, in partnership with the City of Denver and Colorado Enterprise Fund, has formed a forprofit subsidiary known as the Colorado Growth and Revitalization Fund LLC, which is the CDE making NMTC transattlons. What kinds of development activity wlll the CGR Fund pursue with funds secured through NMTC Investments? The Fund willfinance a wide range of private business enterprises in Qualirying Low-Income Communities with funds secured through NMTC investments. Examples of qualifying activities include: loans, equity or capital investments; purchase of certain loans made by other CDES; financial counseling and related services to businesses. The focus of the CGR Fund's program is commercial real estate, commercial mixed-use and other real estate development and redevelopment projects. Additionally, the fund will target its funds to finance community development projects such as community facilities, and non-profit organizations. Can the NMTC be used for housing? As in the above question, the law requires that the NMTC be used to make loans or investments, or to provide counseling for businesses, not to develop affordable housing. In certain circumstances, NMTC may be used to finance mixed-use projects, where less than SO% of the gross rental income comes from dwelling units. In cases such as this, the Low-Income Housing Tax Credits and New Markets Tax Credits may NOT be used to subsidize the same square foot. NMTC funds MAY be used to finance businesses that purchase, rehab and sell single family homes by investing in businesses that are involved in affordable housing. Which businesses yualify as Actlve Low-income Community Businesses for purposes of the NMTC Program? Businesses eligible to receive NMTC financing are corporations, partnerships, sole-proprietorships and non-profits that are ac[ive and located in a low-income community, as defined by the NMTC http://www.chfainfo.com/business/nmtc/nmtc _ faqs.icm Page 2 of 3 11/02/2007 FAQs and helpful links Page 3 of 3 regulations. In general, a Low-Income Community is defined as a Census tract with a poverty rate of at least 20%, or with median income of up to 80% of the area or statewide median, whichever is greater. For a non-metropolitan census tract, 80% of the statewide median is a¢eptable. Furthermore, a Qualified Active Low-Income Community Business must derive at least half its gross income from business in the eligible area and must have a"substantial portion" (40%) of its tangible property located in a low-income community. Finally, the business must perform a substantial portion (40%) of its services in any low-income community. Banks, Credit Unions and other financial institutions are exduded from the definition of Qualified Active Low- inmme Community Business. Who can invest in a CDE? Anyone with a U.S. income tax obligation - including an individual, a company, or an investment fund - can invest in a CDE to receive the NMTC. Investors of all types may be interested in NMTC, including banks and thriks, insurance companies, investment banks, venture capital and other investment funds, insurance companies, individuals, corporations, and others. It is understood that inves[ors in a CDE will expect a retum from the credit above and beyond the federal tax subsidy. What triggers potential recapCUre of the credlt? According to the IRS regulations, there is a recapture event with respect to an equity investment in a CDE if (i) the entity ceases to be a CDE; (ii) the proceeds of the investment cease to be used in a manner that satisfies the substantially-all requirement outlined above; or (iii) the imestment is redeemed by the CDE. Bankruptcy of a CDE is not a recapture even[. In this event, the IRS will recapture all credits allowed [o the taxpayer who purchased the equity investment from the CDE at its original issue and to all subsequent holders of tha[ investment. Those taxpayers will also owe non-deductible interest on the amounts so recaptured. A CDE may apply for a waiver or ex[ension on recapture, and such a waiver or extension may be granted in specific circumstances. If such a waiver or eztension is granted, then the CDE may be required to adjust its policies in order to rectify the si[uation in the future. What (s the ttme Iiml[ for maktng NMTC investments? CDES successful in receiving an allocation of NMTC will have a maximum of five years to place credits with investors and secure cash for equity in the CDE. The CDE must utilize the cash received in exchange for taz credits within 12 months of receipt. If the cash is not invested in a qualified low-income community investment within 12 months of receipt, the CDE is considered to be in default. Who wtll ensure mmpliance wlth NMTC regulations? CHFA, the managing partner of the CGR Fund, has over 32 years of successfW compliance with Federal govemment fundinq programs. To enhance its ability to ensure regulatory compliance performance, the Fund has partnered with industry specialists to assist with deal structuring and compliance. OO 2007 Co._lorado Housing and Finance Authority Business Finance 303.297.7329 or 1.800.877.2432 ext.329 Fax 303191.5709 en espanol privaCy & security policy aCCesslbillty conlact http://www.chfainfo.com/business/nmtc/nmtc faqs.icm 11 /02/2007 WHEAT RIDGE URBAN RENEWAL AUTHORITY RESOLUTION NO. 04 Series of 2007 A RESOLUTION OF THE WHEAT RIDGE URBAN RENEWAL AUTHORITY EXTENDING THE DEADLINE FOR COMPLETION OF THE ELIGIBLE IMPROVEMENTS BY THE WHEAT RIDGE CYCLERY WHEREAS, the 38tn Avenue Conidor Redevelopment Plan provides for the redevelopment p~roject consisting of the expansion oF Wheat Ridge Cyclery (the "Cyclery") at 38~ 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 Mazch 21, 2007, hereinafter refened to as the "AgreemenY'); and WHEREAS, the Wheat Ridge Urban Renewal Authority is in favor of extending the deadline for completion of the Eligible Improvement to December 31, 2007. NOW, THEREFORE BE IT RESOLVED by the Wheat Ridge Urban Renewal Authority Yhat: 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 December 31, 2007. All other terms of the Agreement remain in full force and effect. DONE AND RESOLVED this day of 2007. WHEAT RIDGE URBAN RENEWAL AUTHORITY By: WHEAT RIDGE CYCLERY By: ATTEST: Secretary APPROVED AS TO FORM: Corey Hoffmann, WRURA Attorney ATTACHMENT 4 Wheat Ridge Urban Renewal Authority 7500 W. 29th Avenue Wheat Ridge, Colorado 80033 3032352846 303-235-2857 (Fax) TO: Urban Renewal Authority Board Members FROM: Patrick Goff, Executive Director-Q~ RE: Phase I Environmental Site Assessment DATE: November 2, 2007 Bureau Veritas North America, Inc. was retained by the Colorado Division of Oil and Public Safety to conduct a Phase I Environmental Site Assessment (ESA) of the properties located at 7340 W. 44`h Ave. and 7540 W. 44'h Ave. Based on the recognized environmental conditions identified during the Phase I ESA, a soil and groundwater investigation (Phase II ESA) is recommended to evaluate the potential impacts to the subject property. Attachments: Phase I Executive Summacy Iu r~~ a m e ~ EXECUTIVE SUMMARY Mr. Tim Kelley, Environmentai Protection Specialist, Colorado Department of Labor and Empioyment (CDLE), Division of Oil and Public Safety (OPS), retained Bureau Veritas North America, Inc. (Bureau Veritas) to conduct a Phase I Environmental Site Assessment of two vacant parceis, 7340 West 40 Avenue and 7540 West 40 Avenue, Wheat Ridge, Jefferson County, Colorado (the "subject property"). The objective of the assessment was to provide an independent, professional opinion regarding recognized environmental conditions (RECs), as defined by ASTM, associated with the subject property. This assessment was requested in association with an acquisition. This assessment was performed under the conditions of, and in accordance with Bureau Veritas' Proposal Number 1003.07.372 dated August 22, 2007, and ASTM E1527-05, Standard Practice for Environmental Site Assessments: Phase 1 Environmental Site Assessment Process. Any exceptions to, additions to, or deletions from the ASTM practice are described in the report. Details of the work pertormed, sources of information, and findings are presented in the report. Limitations of the assessment are described in Sections 12 and 1.4. The approximately 7.4-acre subject property is developed with a single story retail store (with meuanine), in a mixed-use commercial and residential setting. The subject property building contains approximately 34,000 square feet of interior floor space and was constructed in 1967. The remainder of the subject property consists of a foundation/buiiding pad associated with a previous building and paved areas. The planned short term use for the subject property is continued operation as a retail store. The subject property appeared to have been vacant land until the development of the subject property building in 1967. The eastern portion of the subject property building, currently occupied by an antique store, was previously occupied by a market, drug store, offices, and a retail store. According to owner interviews, the western portion of the subject property building burned down in approximately 1978. However, based on aerial photographs, the western portion of the subject property building appeared to have bumed down prior to 1975. Based on city directory research, this portion of the buiiding was previously occupied by various retail stores, including a discount department store, camera and photography processing store, and a hardware store. Based on available information, the adjoining properties were developed with a variety of retail stores from at least 1955 to the present. The surrounding properties have been occupied by retail filiinglservice stations, dry cleaners, a beauty parlor, restaurants, a clothing store and a grocery store as well as various other retail stores. This assessment has revealed no evidence of recognized environmental conditions in connection with the property, except for the following: • Transptn Eqpt&Bdy (7472 West 40 Avenue) was listed in the 1972 city directories as a historical address previously associated with the subject property. This facility is not included on the databases ATTACHMENT 1 S:\offceTrojectsWrojeds 2007\00 - OPS\10007-007204.00 CDLE OPS Phase I Work Plan Wheat Ridge, CO\Report\OPS Wheat Ridge Phase I - Rohde.doc ~ V VF7 1 ~ex ~ reviewed for this assessment and no further information is available regarding past operations (e.g. automotive service and body work, or the status of potential tanks at this former facility, etc). Based on operations, paints, and chemicals associated with automobile maintenance and body shops, this represents a recognized environmental condition to the subject property. ~ Robert Waxmans Inc was a photography processing store and Small Quantity Generator of hazardous waste located on the subject property between 1982 and 1992. This indicated the storage and use of hazardous substances on the properry. The waste management practices for the faciliry were not documented at the Colorado Department of Public Health and the Environment. Therefore, this is considered a recognized environmental condition for the subject property. • Dry cleaners have been present adjacent to and to the west of the subject property (in the vicinity of First Bank and its parking lot) for a period from at Ieast 1957 to 1963 and again in 1972. Additional information regarding these facilities and associated operating procedures was unavailable during this assessment (e.g., Iocation of dry cleaning machines, type and storage practices of solvents, etc.). Based on operations associated with dry cleaners and the length of time that the dry cleaners were present (at least 7 years), this represents a recognized environmental condition to the subject property. • Several gasoline filling/service stations have been present to the north (in the vicinity of Panda King, 7400 West 44th Avenue) and to the west (in the vicinity of First Bank and parking lot, 4390 Wadsworth Boulevard and 4322 Wadsworth Boulevard) of the subject property from at least 1957 to 1982. These facilities are not included on the databases reviewed for this assessment and no further information is available regarding past operations (e.g. automotive service [if any], or the status of any tanks at this former facilities [if any], etc). Based on the limited amount of information, the ciose proximity to the subject property, and the length of time that the gasoline filling/service stations have been present (from at least 1957 to 1982), this represents a recognized environmental condition to the subject property. The following notable findings, which are not considered to be recognized environmental conditions, were revealed during this assessment: Active remediation activities are underway at the property occupied by Performance Auto (7320 West 44th Avenue). According to information provided by the client, the groundwater flow direction is to the northeast and petroleum contamination has not been observed in groundwater monitoring wells instailed near the subject property. Based on this information, this facility is not considered a recognized environmental condition to the subject property. A former adjacent gasoline filling station was present to the north of West 44`" Avenue (currently occupied by AAA Propane Sales, 7405 West 44'" Avenue) in 1963 and from at least 1972 to 1982. According to the EDR database, three 1,000-gallon underground storage tanks (USTs) (contents unknown) were removed from the facility in May 1999. The USTs were closed in August 1999. Based on groundwater monitoring reports for nearby properties, groundwater flow direction is to the northeast, away from the subject property. Based on the closed status of the USTs, the absence of T~ re9 Ia~ ~ ~ existing USTs and groundwater flow direction, this facility is not considered a recognized environmental condition to the subject property. Based on the recognized environmental conditions identified during the Phase I ESA, a soil and groundwater investigation (Phase II Environmental Site Assessment) is recommended to evaluate the potential impacts to the subject property. Wheat Ridge Urban Renewal Authority 7500 W. 29th Avenue Wheat Ridge, Colondo 80033 303-2352846 303-235-2657 (Fax) TO: Urban Renewal Authority Boazd Members FROM: Patrick Goff, Executive DirectoL-94 RE: 2008 Budget DATE: November 2, 2007 Attached for further discussion are the 2008 proposed budgets For the following funds: Exhibit L• Town Center Fund Bxhibit 2: Walgreens Project Fund Exhibit 3: Wheat Ridge Cyclery Project Fund The major expenditures, all out of the Town Center Fund, aze for legal representation and reimbursement to the City for staff time provided for Urban Renewal activities. In addition, I've included $15,000 in 2008 to accept the options for the two properties located at 7340 and 7540 W. 44~' Avenue. With the $200,000 transfer from the Town Center Fund to the Walgreens Project Fund in 2007, the WRURA has now satisfied the courts order to escrow the required funds far the Cornerstone lawsuit. In addition, the property tax increment for the Town Center expired in 2006; therefore payments to the Wheat Ridge Fire District will expire in 2007. Sales tax and property tax increment are scheduled to begin with the completion of the eligible improvements for the Wheat Ridge Cyclery pxoject. The improvements aze estimated to be completed by December 1, 2007. One hundred percent of increment will be refunded to Wheat Ridge Cyclery to reimburse them for the eligible improvements. Staff recommends holding a public hearing for adoption of the 2008 budgets at the December 2007 WRURA meeting. EXHIBIT 1 WHEAT RIDGE URBAN RENEWAL AUTHORITY Town Center Fund 2005 Actual 2006 Actual 200 7 Adopted 2007 9-Month 200 7 Estimated 2008 Proposed BEGINNING FUND BALANCE $ 223,101 $ 122,792 $ 226,615 $ 219,384 $ 219,384 $ 565,681 Revenues 37-500-00-501 Property Tax Increment $ 275,084 $ 233,050 $ 240,000 $ 336,847 $ 336,847 $ - 37-500-00-504 Sales Tax Increment $ 100,000 $ 200,000 $ 100,000 $ - $ 260,000 $ 260,000 37-580-00-581 Interest $ 3,744 $ 3,585 $ 3,500 $ 9,041 $ 12,000 $ 10,000 TOTAL REVENUE $ 378,828 $ 436,635 $ 343,500 $ 345,888 $ 608,847 $ 270,000 Personnel 37-120-600-602 Salaries $ $ $ $ $ $ 37-120-600-625 FICA $ $ $ $ $ $ Total Personnel $ - $ $ $ $ $ Supplies 37-120-650-651 Office Supplies $ - $ 52 $ 200 $ - $ 100 $ 200 37-120-650-654 Printing & Photocopying $ - $ - $ 800 $ 316 $ 400 $ 800 37-120-650-655 Postage $ - $ - $ 200 $ - $ - $ 200 Total Supplies $ - $ 52 $ 1,200 $ 316 $ 500 $ 1,200 Services 37-120-700-702 Conference & Meetings $ - $ - $ 1,200 $ - $ - $ 1,000 37-120-700-706 Dues, Books, Sub $ 3,717 $ 250 $ 3,800 $ - $ 275 $ 1,000 37-120-700-740 Mileage $ - $ - $ - $ - $ - $ - 37-120-700-750 Professional Services $ 37,167 $ 18,822 $ 60,000 $ 29,069 $ 35,000 $ 60,000 37-120-700-758 City Reimbursement $ 6,683 $ 7,227 $ 5,000 $ - $ 5,000 $ 7,000 37-120-700-760 Utilities & Maint. $ 802 $ 529 $ 500 $ 424 $ 575 $ 600 37-120-700-799 Misc. $ 144 $ 457 $ 200 $ 900 $ 1,200 $ 1,200 Total Services $ 48,512 $ 27,285 $ 70,700 $ 30,393 $ 42,050 $ 70,800 Capital 37-120-800-801 Lands. Buildings, & Wat $ 81,013 $ - $ 20,000 $ - $ - $ 15,000 37-120-800-872 Site Improvements $ - $ - $ - $ $ - $ - 37-120-800-873 Payment to Fire District $ 14,613 $ 12,707 $ 16,000 $ - $ 20,000 $ 37-120-800-872 PTI - Marketplace $ - $ - $ - $ - $ - $ 37-120-890-897 Trans to Walgreens Fund $ 335,000 $ 300,000 $ 200,000 $ 200,000 $ 200,000 $ - Total Capital $ 430,625 $ 312,707 $ 236,000 $ 200,000 $ 220,000 $ 15,000 TOTAL EXPENDITURES $ 479,137 $ 340,044 $ 307,900 $ 230,709 $ 262;550 $ 87,000 ENDING FUND BALANCE $ 122,792 $ 219,383 $ 262,215 $ 334,563 $ 565,681 $ 748,681 EXHIBIT 2 WHEAT RIDGE URBAN RENEWAL AUTHORITY Walgreens Project Fund 2005 Actual 2006 Actual 2007 Adopted 2007 9-Month 2007 Estimated 2008 Proposed BEGINNING FUND BALANCE $ 2,013 $ 339,030 $ 643,939 $ 645,658 $ 645,658 $ 870,658 Revenues t $ - $ - $ $ $ $ 37-580-00-501 Property Tax Incremen $ - $ $ 15,000 $ 15,000 37-580-00-584 Sales Tax Increment $ $ - 107 2 $ $ - 724 6 $ 5,000 $ 7,265 $ 10,000 $ 12,000 37-580-00-581 Interest , , $ - $ 37-580-02-588 Sale of Property 37-590-00-592 Trans from Town Cent Fund $ $ - 335,000 $ 300,000 $ 200,000 $ 200,000 $ 200,000 $ _ TOTAL REVENUE $ 337,107 $ 306,724 $ 205,000 $ 207,265 $ 225,000 $ 27,000 Services ti M $ - $ - $ $ $ $ ngs ee 37-121-700-702 Conference & $ $ $ _ 37-121-700-706 Dues, Books, Sub $ $ $ $ $ $ 37-121-700-740 Mileage $ $ $ $ $ $ $ 37-121-700-750 Professional Services $ $ - $ $ $ 37-121-700-758 City Reimbursement $ $ $ $ 68 $ 100 $ 100 37-121-700-799 Misc. $ 90 $ 95 $ Total Services $ 90 $ 95 $ $ 68 $ 100 $ 100 Capital 37-121-800-801 Acquisition & Relocate $ $ $ $ $ $ $ $ _ 37-121-800-872 Site Improvements $ - $ $ $ $ $ $ 37-121-900-901 Loan Payment $ $ $ Total Capital $ $ $ - $ $ $ TOTAL EXPENDITURES $ 90 $ 95 $ - $ _ $ $ ENDING FUND BALANCE $ 339,030 $645,659 $ 848,939 $ 852,923 $ 870,658 $ 897,658 2007 Budget.xls EXHIBIT 3 WHEAT RIDGE URBAN RENEWAL AUTHORITY Wheat Ridge Cyclery Project Fund 2007 Adopted 2007 9-Month 2007 Estimated 2008 Proposed BEGINNING FUND BALANCE $ - $ $ $ Revenues 37-580-00-501 Property Tax Increment $ - $ $ - $ - 37-580-00-584 Sales Tax Increment $ 24,000 $ $ 2,000 $ 25,000 37-580-00-581 Interest $ - $ $ $ - 37-580-02-588 Sale of Property $ - $ $ $ - TOTAL REVENUE $ 24,000 $ $ 2,000 $ 25,000 Services 37-121-700-702 Conference & Meetings $ - $ $ - $ - 37-121-700-706 Dues, Books, Sub $ - $ $ - $ 37-121-700-740 Mileage $ - $ - $ $ 37-121-700-750 Professional Services $ $ $ $ 37-121-700-758 City Reimbursement $ - $ $ $ ' 37-121-700-799 Misc. $ - $ $ $ - Total Services $ $ $ $ ' Capital 37-121-800-801 Acquisition & Relocate $ - $ $ - $ - 37-121-800-872 Site Improvements $ 24,000 $ $ 2,000 $ 25,000 37-121-900-901 Loan Payment $ - $ - $ - $ - Total Capital $ 24,000 $ $ 2,000 $ 25,000 TOTAL EXPENDITURES $ 24,000 $ $ 2,000 $ 25,000 ENDING FUND BALANCE $ - $ $ - $ -