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Home My WebLink About09/07/2010AGENDA WHEAT RIDGE URBAN RENEWAL AUTHORITY September 7, 2010 Notice is hereby given of a Public Meeting to be held before the City of Wheat Ridge Urban Renewal Authority on Tuesday, September 7, 2010 at 6:00 p.m., in the Lobby Conference Room of the Municipal Building at 7500 West 29th Avenue, Wheat Ridge, Colorado. Individuals with disabilities are encouraged to participate in all public meetings sponsored by the City of Wheat Ridge. Call Heather Geyer, Public Information Officer at 303 -235 -2826 at least one week in advance of a meeting if you are interested in participating and need inclusion assistance. 1. Call the Meeting to Order 2. Roll Call of Members 3. Approval of Minutes -August 3, 2010 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. 44` and Wadsworth Redevelopment — Phase II — Wazee Partners, LLC 6. Urban Renewal and Redevelopment Consulting Proposal — Britt Nelson, NewCity Development 7. Community Development Referral — 3490 Youngfield/Wells Fargo Bank 8. 44 and Wadsworth Redevelopment Update 9. Other Matters 10. Adjournment MINUTES RENEWAL WHEAT RIDGE August 3, 2010 1. CALL THE MEETING TO ORDER The meeting of Renewal Wheat Ridge was called to order by Chair Adams at 6:03 p.m. in the council chambers of the Municipal Building, 7500 West 29 Avenue, Wheat Ridge, Colorado. 2. ROLL CALL OF MEMBERS Authority Members Present: Rick Adams James Bahrenberg Janet Leo Walt Pettit Tom Radigan Larry Schulz Authority Members Absent: Becky Bye Also Attending: Patrick Goff, Executive Director Corey Hoffmann, RWR Attorney Ann Lazzeri, Recording Secretary 3. APPROVAL OF MINUTES It was moved by Janet Leo and seconded by James Bahrenberg to approve the minutes of June 1, 2010 as written. The motion passed unanimously. 4. PUBLIC FORUM (This is the time for any person to speak on any subject not appearing on the agenda.) There were no members of the public present. 5. STAFF UPDATES Patrick Goff reported that the balance of the library donation held by the Foundation is $93,000 as of the end of June. 6. EXECUTIVE SESSION It was moved by Janet Leo and seconded by James Bahrenberg and Walt Pettit to enter into executive session to consider the purchase, acquisition, Renewal Wheat Ridge - 1 — August 3, 2010 lease, transfer or sale of real, personal or other property located generally at 44 Avenue and Wadsworth Boulevard pursuant to C.R.S. Section 24- 6-402(4)(a). The motion passed unanimously. The regular meeting was adjourned to executive session at 6:08 p.m. The executive session convened at 6:09 p.m. The executive session adjourned to regular meeting at 7:31 Those attending the executive session were: Rick Adams, RWR Member James Bahrenberg, RWR Member Janet Leo, RWR Member Walt Pettit, RWR Member Tom Radigan, RWR Member Larry Schulz, RWR Member Patrick Goff, Executive Director Corey Hoffmann, RWR Attorney Ann Lazzeri, Secretary The regular meeting was reconvened at 7:33 p.m. 7. OTHER MATTERS Patrick Goff reported that staff will meet with a prospective tenant who has expressed interest in the thrift store at 38 and Kipling. There has also been interest expressed by developers for three properties located in urban renewal areas. 8. ADJOURNMENT It was moved by James Bahrenberg and seconded by Janet Leo to adjourn the meeting at 7:39 p.m. The motion passed unanimously. The next meeting is scheduled for August 17, 2010. Rick Adams, Chair Ann Lazzeri, Secretary Renewal Wheat Ridge August 3, 2010 -2— Awe- RENEWAL WHEAT RIDGE Progress Through Partnership MEMORANDUM TO: Renewal Wheat Ridge Board Members FROM: Patrick Goff, Executive Director DA RE: 44` and Wadsworth Redevelopment — Phase II — Wazee Partners, LLC DATE: September 2, 2010 Phase II of the 44th and Wadsworth Redevelopment project consists of approximately 3.5 acres of land on the eastern half of the development. The future use of this pad has been contemplated to include retail, senior housing, multifamily, office and/or medical office uses. Weston Solutions has been in discussions with Wazee Partners, LLC (Wazee) who have expressed interest in this property for a multifamily development. Wazee is a direct developer and buyer of multifamily apartment properties located throughout the western United States. Based in Denver, Colorado, the Principals of Wazee and its affiliates have purchased over 600 units during the past five years. Wazee has extensive knowledge and experience in the development and acquisition of both market rate and affordable multifamily properties. Wazee does not believe that new market rate construction if justified during these tough market times. Therefore, Wazee's development concept utilizes the Low Income Housing Tax Credit (LIHTC) affordable housing development program passed into legislation by the Tax Reform Act of 1986. This program is significantly different than the Section 8 housing program in that tenants must pay 100% of their rent payment but at a rate no higher than 60% of Area Median Income (AMI). Wazee has been invited to the September 7` RWR meeting to discuss their proposed project in greater detail with the RWR Board. Attachment: 1. Wazee Partners, LLC informational brochure 7500 West 29` Avenue Wheat Ridge, CO 80033 Phone: 303.235.2805 Fax: 303.235.2805 www.ci.wheatridge.co.us WAZEE PARTNERS, LLC 1743 Wazee Street, Suite 450 Denver, CO 80202 (303) 832 -4400; FAX: (303) 832 -6154 Wazee Partners, LLC is a direct developer and buyer of multifamily apartment properties located throughout the western United States. Based in Denver, Colorado, the Principals of Wazee Partners and its affiliates have purchased over 600 units during the past five years. We have extensive knowledge and experience in the development and acquisition of both market rate and affordable multifamily properties. Our strong relationships with debt and equity investors enable us to proceed expeditiously with transactions. Below are some of the projects currently owned by the Principals of Wazee Partners, through Menola Land LLC or other affiliated entities: Project Transaction Location: Asset Type: Transaction Transaction Name: Date: (City/State) Type: Size: Olive Street 2002 Denver, Multifamily Acquisition/Rehab 28 units Apartments CO Rose Park 2004 Billings, Multifamily / Acquisition/Rehab 112 units Plaza MT LIHTC Apartments Fraser Tower 2005 Billings, Senior Housing Acquisition/Rehab 64 units Apartments MT Northeast 2006 Sterling, Multifamily / Acquisition/Rehab 48 units Plaza CO LIHTC Apartments GAO Homes 2007 Denver, Multifamily / Acquisition/Rehab 44 units CO LIHTC Juanita 2007 Denver, Senior Housing Acquisition/Rehab 188 units Nolasco CO / LIHTC Residences Platteview 2007 Casper, Multifamily / Acquisition/Rehab 48 units Apartments WY LIHTC Sage Tower 2008 Billings, Senior Housing Acquisition/Rehab 81 units Apartments MT / LIHTC The Principals of the above entities have extensive experience developing, owning and managing tax credit properties over the last 8 years. Their portfolio consists of eight apartment properties in the U.S. mountain west region, three of which are senior properties. The property management affiliate of Wazee Partners, LLC is Community Management, LLC ( htip:// www. communitymanagementdenver .com/ Community Management is a Colorado limited liability company engaged in the management of multifamily and elderly Section 42 tax credit rental properties located in Colorado. Community Management is a U.S. Department of Housing and Urban Development approved management agent and maintains required Colorado Real Estate Commission licenses. Community Management has completed two years of CHFA HAP Contract Administrator, Management and Occupancy Reviews with no outstanding non - compliance findings. The Company currently manages 250 senior affordable apartment units in the Denver metro area. For more information, please contact: CHRIS DOWNS 1743 Wazee Street, Suite 450 Denver, CO 80202 Phone: 303 - 832 -4400 X662 Fax: 303 - 832 -6154 Email: chrisQcdownslaw.com TYLER DOWNS 1743 Wazee Street, Suite 450 Denver, CO 80202 Phone: 303 - 832 -4400 X679 Fax: 303 - 832 -6154 Email: tdownsAwazeepartners.com Given the current level of multifamily apartment rents in the immediate area, Wazee Partners does not believe new market rate construction is justified. The most sensible multifamily development approach would be to employ the Section 42 Low Income Housing Tax Credits. The Low Income Housing Tax Credit ( "LIHTC ", or, the "Program ") is an affordable housing development program passed into legislation by Section 42 of the Tax Reform Act of 1986. The LIHTC provides funding for the development costs of rent restricted housing by allowing investors in these projects to take a federal tax credit equal to a large percentage of the cost incurred for development of rent restricted housing. Development capital is raised by "syndicating" the credit to an investor or, more commonly, a group of investors. In order to take advantage of the LIHTC program in Colorado, a developer must propose the project to the Colorado Housing Finance Authority ( "CHFA "), seek and win a competitive allocation of tax credits, complete the project, certify its cost, and rent -up the project to low income tenants. The first step in the process is for a project developer /owner to submit an application to CHFA, which will consider the application competitively. The application will include estimates of the expected cost of the project and a commitment to comply with either of the following conditions, known as "set - asides": • At least 20% or more of the residential units in the development are both rent restricted and occupied by individuals whose income is 50% or less of the area median gross income. • At least 40% or more of the residential units in the development are both rent restricted and occupied by individuals whose income is 60% or less of the area median gross income. Typically, the project owner will agree to a higher percentage of low income usage than these minim ums, up to 100 %. Low income tenants can be charged a maximum rent of 30% of the maximum eligible income, which is 60% of the area's median income adjusted for household size as determined by HUD. There are no limits on the rents that can be charged to tenants who are not low income but live in the same project. For example, tenants in a Section 42 Affordable Housing Development located in Jefferson County, CO would be eligible to rent an apartment at the property only if their incomes were less than or equal to 60% of the Area Median Income ( "AMI "): 2010 Section 42 Income Limits for Jefferson County, CO Household Size: Area Median Income 40% AMI 50% AMI 60% AMI One Person: $53,200 $21,280 $26,600 $31,920 Two Persons: $60,800 $24,320 $30,400 $34,480 Three Persons: $68,400 $27,360 $34,200 $41,040 Four Persons: $76,000 $30,400 $38,000 $45,600 A likely rent schedule for tenants residing at a Section 42 apartment project in Jefferson County, CO is below: 2010 Section 42 Maximum Rents for Jefferson County, CO Unit Configuration: Unit Size 40% Rents 50% Rents 60% Rents 1 Bedroom, 1 Bath: 725 square feet $570 / month $713 / month $738 / month 2 Bedroom, 1 Bath: 850 square feet $684 / month $855 / month $881 /month 2 Bedroom, 2 Bath: 975 square feet $791 / month $988 / month $1,041 / month The Section 42 Program is significantly different than the Section 8 housing program. Section 42 tenants must pay 100% of their rent payment, even though the rent payment cannot be greater than 60% of AMI. Section 8 tenants (either project based or voucher based), pay only 30% of their monthly income towards rent (regardless of how little income they make), with the Federal Government (via HUD) providing the remainder of the market rent payment. For example, if a Section 8 tenant only makes $200 per month in income, the maximum rent they can pay is $60 per month ($200 x 30 %). If the market rent for the unit is $700 per month, HUD will pay the remaining $640 in rent. Section 8 is intended to house the very poor, or people who have difficulty finding or keeping work. Section 42 is workforce housing for those making less than the average area median income. SAMPLE MULTIFAMILY BUILDING ELEVATIONS POTENTIAL MULTIFAMILY SECTION 42 LIHTC DEVELOPMENT 44 & WADSWORTH WHEAT RIDGE, CO PROJECT ARCHITECT: KEPHART ARCHITECTS AND PLANNERS The below elevations are examples of a local Section 42 project designed by the architectural firm Wazee Partners would retain for this project: SAMPLE EXISTING LIHTC BUILDINGS POTENTIAL MULTIFAMILY SECTION 42 LIHTC DEVELOPMENT 44" & WADSWORTH WHEAT RIDGE, CO PROJECT ARCHITECT: KEPHART ARCHITECTS AND PLANNERS The building below is an example of a local Section 42 project designed by the architectural firm Wazee Partners would retain for this project: �,j„ RENEWAL Iff WHEAT RIDGE Progress Through Partnership MEMORANDUM TO: Renewal Wheat Ridge Board Membe s FROM: Patrick Goff, Executive Director RE: Urban Renewal and Redevelopment Consulting Proposal Britt Nelson, NewCity Development DATE: September 2, 2010 RWR contracted with Leland Consulting Group in November 2009 to conduct four market analyses for use in strategically positioning catalyst areas (nodes), within the City's urban renewal areas, for reinvestment. Those four nodes are L 38 Avenue and High Court 2. Interstate -70 and Kipling Street 3. 38 Avenue and Kipling Street 4. 44 Avenue and Kipling Street Each analysis investigated the opportunities for, and barriers to, investment in these specific areas of the City. Specifically, the analyses evaluated the area's market readiness and the necessity for public intervention and assistance. In addition, each analysis provided recommendations and data to assist RWR in proactively promoting projects within these areas which will provide a public benefit. Britt Nelson with NewCity Development, LLC submitted an Urban Renewal and Redevelopment Consulting proposal to assist RWR in carrying out the vision and revitalization of each of the nodes analyzed by Leland Consulting Group. Mr. Nelson has been invited to the September 7th RWR meeting to discuss his proposal in greater detail. Attachment: 1. NewCity Development, LLC proposal dated, August 23, 2010 7500 West 29 Avenue Wheat Ridge, CO 80033 Phone: 303.235.2805 Fax: 303.235.2805 www.ci.wheatridge.co.us NEWCITY DEVELOPMENT LLC August 23, 2010 Mr. Patrick Goff City Manager City of Wheat Ridge 7500 W 29th Ave Wheat Ridge, CO 80033 RE: Urban Renewal and Redevelopment Consulting. Dear Patrick: The following is a proposal for Urban Renewal and Redevelopment Consulting. NewCity Development, LLC. (Britt Nelson) will represent and act as an objective advocate while providing seasoned real estate experience and consulting services. NewCity Development, LLC will bring our development knowledge and retail background and contacts to the table. Through our recent conversations, I view my role as one that can truly lend a hand and be of value and benefit to you and your team. In general, NewCity Development, LLC (Britt Nelson) will focus on the following areas: • 1 -70 and Kipling • 38 and Kipling 44 and Kipling • 38 "' and Nigh Court Once engaged by the City of Wheat Ridge, we will be responsible for assisting City Management the URA, Council and Staff in carrying out the vision and revitalization of each of the areas mentioned above. The responsibilities would include but not limited to: A. Work with the URA, City Management and Council to strategically revitalize and help shape the redevelopment each area. o Discussions with City Management, Staff and Council on current status and vision for each area. • Review current City Comprehensive Development Plan. • Meet with various other city departments that these redevelopment areas impact. • Identify problems and initiate solutions regarding any of the above. • Identify and develop specific strategic plans for 2 of the most desired areas of revitalization and redevelopment initially. B. Facilitation and Shaping of Redevelopment areas • Open dialog with targeted and current land owners. • Bring about a targeted list of development partners and retailers through current City list of contacts and build with Britt Nelson's contact data base locally and nationally. • Work with and facilitate contacts and meetings with City Management to generate or get further interest with various developers and retailers that best fit the area of redevelopment. (i.e.: attend ICSC regional and national conventions on the behalf of the City). • Assist the City in identifying proper development partner —s in the assembly of the property where needed. • Assist and facilitate between City and developer regarding all issues of a given project. • Assist and facilitate with the financing community to bring capital to the project. (if needed) • Assist City Management politically regarding a redevelopment. This can be locally and or through the State Legislature. C. Development Phase o Once development partner identified for a given development, NewCity will become a liaison between the developer and the City, working on the city's behalf. (If needed). With the assistance of City Management, Staff, URA and Council, together we will be able to take the initial information provided to you, create and implement a strategic plan that revitalizes these areas to bring forth the necessary retail revenue to the City of Wheat Ridge. /am proposing a one year contract arrangement. The fee for consulting services to be at an hourly rate of $150.00 1hour with a not to exceed of $4,500.00 1month, plus reimbursement for any travel costs, subject to prior approval. In addition, NewCity Development, LLC will be reimbursed for all direct expenses in connection with the work including, but not limited to, long distance phone calls, express mail, delivery services, mileage, parking, photography, copying, printing and computer plotting costs. Contract amounts, reimbursables, monthly time and activity reports will be invoiced to the City of Wheat Ridge on the 30` of each month. Weekly communication regarding activity will be communicated to City Management. This assignment will have the highest priority and all information provided and shared by both entities shall be held in strict confidence. This approach allows NewCity Development, LLC. to represent you as an objective advocate while providing a seasoned real estate perspective and services. After your review of this proposal, I would welcome the opportunity to answer any of your questions or address any comments. Thank you for the opportunity to provide our services to the City of Wheat Ridge, Colorado Respectfully submitted, NEWCITY DEVE�GW, ' NT, LLC - 1 Britt C. Nelson President RENEWAL WHEAT RIDGE Progress Through Partnership TO: Urban Renewal Authority Members FROM: Patrick Goff, Executive Director RE: WZ -10 -06 /Wells Fargo Bank — Amendment to FDP DATE: September 3, 2010 The Community Development Department has received an application for approval of a Planned Commercial Development administrative amendment to the final development plan for the construction of a Wells Fargo Bank in the Applewood Village Shopping Center at 3490 Youngfield Street. The current use of the property is as a bank. The redevelopment will consist of demo of the existing building and reconstruction, including landscaping improvements. The City's Zoning and Development Code requires the review by Renewal Wheat Ridge (RWR) of land use applications in an urban renewal area. The Code requires a recommendation from RWR based on its review of the application "against the provisions of the urban renewal plan with respect to the land area, land use, design, building requirements, timing and procedure." You are not making a recommendation on whether the request should be approved or not. Your task is to determine if the request is in compliance with the I -70 /Kipling Corridors Urban Renewal Plan. Your finding will be one factor to be considered in the approval process. I- 70/Kipling Corridors Urban Renewal Plan The recommended vision for the I -70 /Kipling Corridors area is one that will... create a series of destinations that are both region- serving and locally supportive. The Plan envisions quality materials; notable architecture; strong internal and external connections; and, host environments for public events and cultural venues. New uses and redevelopment of existing uses may be developed in mixed -use and multi -use formats where feasible, and in an architectural style that is regionally- relevant. Whereas existing neighborhoods will be stabilized, new neighborhoods will be co- located with commercial, employment and institutional uses. Improvements in the physical realm will be consistent and communicate a unified identity and brand. Connections for vehicles, pedestrians, bicycles and other modes of transportation will be improved and strengthened in a manner that is regionally- relevant and in accordance with the Architectural and Site Design Manual. Potential land uses with the Urban Renewal Area include a range of commercial, employment (industrial and office), residential, institutional, lodging, civic, cultural and parking. Other more general development objectives include flexibility given changing market conditions; 7500 West 29 Avenue Wheat Ridge, CO 80033 Phone: 303.235.2805 Fax: 303.235.2805 www.ci.wheatridge.co.us adaptability to a range of uses and product types; and, consistency in building material and development quality. Recommended Findings: The Urban Renewal Concept Plan recommends that the subject property be considered for Commercial uses. Staff finds that the administrative amendment to the final development plan is in conformance with the I- 70 /Kipling Corridors Urban Renewal Plan. The new proposed Wells Fargo Bank structure will be replacing an existing vacant wood structure that is not in character with the rest of the Applewood Village Shopping Center. The proposed new structure will be primarily tow -toned masonry veneer, as well as stucco on two architectural towers and stacked stone as a pilaster feature which will match its new retail neighbor to the north. The towers will have low pitched roofs in similar style to the other buildings in the development. Colors will be complimentary to the existing architecture. Attachments: 1. Community Development Staff Report (excluding exhibits) 2. Urban Renewal Concept Map City of �W he " atpidge COMMUNITY DEVELOPMENT Community Development 7500 West 29th Avenue Wheat Ridge, Colorado 80033 303.235.2846 Fax: 303.235.2857 Community Development Referral Form Date: August 25, 2010 Response Due: September 8, 2010 The Wheat Ridge Community Development Department has received an application for approval of a Planned Commercial Development administrative amendment to the final development plan for the construction of a Wells Fargo Bank in the Applewood Village Shopping Center at 3490 Youngfield Street. No response from you will constitute having no objections or concerns regarding this proposal. Case No.: WZ- 10- 06/Wells Fargo Bank Request: Approval of an administrative amendment to the existing final development plan to allow for redevelopment of property located at 3490 Youngfield. Current use of the property is as a bank. The redevelopment will consist of demo of the existing building and reconstruction, including landscaping improvements. Please respond to this request in writing regarding your ability to serve the property. Please specify any new infrastructure needed or improvements to existing infrastructure that will be required. Include any easements that will be essential to serve the property as a result of this development. Please detail the requirements for development in respect to your rules and regulations. If you need further clarification, contact the case manager. Case Manager: Meredith Reckert Voice: 303.235.2848 Fax: 303.235.2857 Em mreckert@ci.wheatridge.co.us DISTRIBUTION: Water District (Consolidation Mutual) Fire District (Wheat Ridge Wheat Ridge Building Division Renewal Wheat Ridge Xcel Energy Sanitation District ( Applewood) Wheat Ridge Public Works 'The Carnation City " Lil a 0 "The Carnation City" •4 2 3490 Youngfield 'IN 1�1 1-70 f Kipling Road Corridors Urban Renewal Concept Map WTI 7- Stable Residential Neighborhoods 0 L: LELAND CONSULTING GROUP (20 July 2009) Villa C " n t e, 43