HomeMy WebLinkAbout10/01/2008October 1, 2008
Special Study Session with Mayor, City Council, WR 2020 and City staff
This is a first positive step in opening the dialogue between City Council and WR 2020.
The goal is to get some key information "on the table" with the vested parties and
potential decision makers in the room to avoid miscommunication & misunderstandings.
The following is list of essential questions that will be addressed by WR 2020 and City
staff: (space has been left between questions for your notes)
1. What has WR2020 accomplished and what, if any, valuable insights have been
gained because of and since its inception?
2. Are these accomplishments aligned with the NRS and other related City goals? At
what cost? Is there high perceived value for the money spent (good return on
investment)?
3. Given the accomplishments to date, what are the projections for future projects /
programs and at what costs?
4. How does the NRS fit into the on-going strategic plan of the City and what have
we learned about the NRS that needs to be modified?
5. Is WR2020 still the preferred vehicle for accomplishing the goals originally
described in the NRS and other City goals?
6. What about the WR2020 organization could be modified to better partner with the
City for progressing toward and ultimately achieving key City strategic goals?
7. What are the budget/economic opportunities and limitations that could provide for,
or constrain, WR2020 and City related operations in the coming year(s)?
8. For constraints that have been identified as reasonably likely, what adjustments
can be made to best use City financial resources including modifying WR2020 funding?
9. How would progressively reduced funding for WR2020 impact WR2020 projects
and programs and the City at-large?
10. What other City activities / operations would benefit from cuts to WR2020 funding
and do those trade-offs produce other necessary and/or preferable outcomes that are of
higher priority or value in the short, medium term?
Suggested Consensus:
I would ask for a consensus that $ be reflected in the proposed 2009
City budget for WR 2020 beginning 1/1/2009 and this amount be reflected in the
Council budget discussions on October 6`n
I would ask for a consensus that a regular study session be scheduled ASAP with
Council, WR 2020 and the City's Planning Department to discuss best practices
and possible changes to the City's building codes.
September 25, 2008
City of Wheat Ridge
7500 W. 29`h Avenue
Wheat Ridge, CO 80033
Attn: Mr. Randy Young, City Manager
Re: 2009 WR2020 Funding Allocation
Dear City Manager Young,
On September 9, 2008, Wheat Ridge 2020 submitted our 2009 funding request for City
Council's consideration. It was our understanding that funding appropriations would be made in
the amount of $1,500,000.00, as outlined in the City's Neighborhood Revitalization Strategy
(NRS) report under the five year implementation plan for WR2020. It is our understanding that
the City staff recommend to City Council that the 2009 appropriation to our organization be
made in the amount of $500,000.00. We also understand that this recommendation has been
proposed due to concerns with current and future revenue projections. These concerns are based
on the declining economic climate we are facing both nationally and locally.
In times of economic limitations, it is necessary to reconsider commitments, objectives
and goals. WR2020 provides the following information in an effort to provide City Council with
an understanding of how WR2020's activities are reaching the NRS goals. Additionally, this
report outlines the impacts of funding reductions with respect to our programs. It is important
for City Council to determine if WR2020 is meeting the expectations set by the NRS. It is also
important for City Council to review its commitment to the WR2020 NRS based projects. I hope
this information aids City Council as it considers of our requested 2009 funding allocation, and
balances the City's commitment to the NRS and other City programs and obligations.
In addition to the presentation of our budget and program goals, we are providing
recommendations for alternative funding sources. These recommendations provide potential
continued progress, although in a limited capacity, toward City Council's desired NRS goals.
City Council NRS Goals
In 2005 the Wheat Ridge City Council adopted the Neighborhood Revitalization Strategy
by Resolution No.36 to accept the full recommendations of the report. Recommendation No. 3
of the NRS calls for, "The Creation of a Public, Non-Profit Corporation capable of facilitating
and encouraging appropriate development in Wheat Ridge." City Council commissioned the
formation of Wheat Ridge 2020 to provide implementation services for a specific series of tasks
4350 Wadsworth Blvd., P.O. Box 1268 Wheat Ridge, CO 80034
Phone: (720) 259-1030 Fax: (303) 940-9332
City Manger R. Young
September 25, 2008
to invigorate reinvestment and revitalization in our community. City Council represented a
commitment to fund the organization for five years in the amount of $1.5M annually to support
the implementation tasks. The commitment to funding was based on providing the capability for
WR2020 to implement strategies quickly, and to provide sufficient seed fund equity to the
organization to allow it to grow and eventually function with limited or no City general fund
allocations after the five year seeding period.
City Council commissioned WR2020 to implement the following tasks, as outlined on page 3r of
the NRS, on an annual basis:
1. Invest $750,000 in real estate development activities to renovate houses in target areas.
2. Create and nurture developer interest in residential redevelopment in the City.
3. Package and market vacant land for new real estate development.
4. Create a low interest renovation loan fund, to help homeowners reinvest in their homes.
5. Create a community self help initiative, to support volunteer driven projects.
6. Create a program to support the upgrade of small apartment complexes.
7. Provide marketing and community branding initiatives.
8. Devise a series of neighborhood / city wide, citizen led improvement projects.
9. Option commercial property as a coordinated effort to support the City's commercial
corridor revitalization goals.
All activities as outlined on the NRS were designated as programs with anticipated losses of
approximately $450,000 annually. THESE FUNDS WOULD NOT GET RECOVERED.
In addition to these specific tasks, WR2020 has been requested to provide advocacy to
promote technical policy change, education to promote an understanding of best real estate
development practices, community outreach to promote and encourage citizen engagement on
community boards and commissions, and public addresses to citizens, civic groups, private
organizations promoting the message that Wheat Ridge is open for business and ripe for
investment. WR2020 also has taken over administrative functions for the Wheat Ridge Business
District.
It is also important to acknowledge that all these programs and projects require
administration and staffing.
To provide the necessary implementation of the NRS strategies, City Council has allocated
$4M over the past three years as follows:
2006 - $1.OM
2007 - $1.5M
2008 - $1.5M
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City Manger R. Young
September 25, 2008
Wheat Ridge 2020 NRS Strategy Implementation
WR2020 has devises, implements and administers programs that meet all nine specific
task areas outlined in the NRS and commissioned by City Council. WR2020 also provides
programs and leadership in areas that exceed its NRS objectives to assist in fulfilling the City's
overall economic development programs. In addition, WR2020 has invested significant amounts
of the City's contributions as part of our real estate development and lending portfolios, thus not
wasting the City's investments, but creating long term programs to help the City's revitalization
efforts. The following outlines WR2020's activities.
1. Invest $750,000 in real estate development activities to renovate houses in target areas.
In the past 2 years and 6 months, WR2020 has invested and reinvested portions of the City's
equity contributions in single family detached home renovations in the approximate amount of
$3.0M. Our residential investments have been made in blighted, abandoned, foreclosed, and
neglected properties located in the three major revitalization corridors identified in the NRS.
The average property value in these corridors is approximately $160,000. WR2020 renovates
the properties it purchases to a standard meeting all modern amenities and finishes typically
found in new production homes with a goal of attracting stakeholder families as buyers.
WR2020's completed single family detached homes are selling at prices ranging from $200,000
to $270,000 which is 125% to 170% higher than the average home prices in the revitalization
corridors. The total impact of our renovation projects for single family homes is approximately
$4.8M, or 160% greater than our investment. WR2020 has invested in ten (10) single family
detached home projects and sold three (3). The buyers of these properties all meet the NRS
target demographic of young, upwardly financially mobile, stakeholder families. WR2020
continues to recycle the equity it has invested in single family detached home development, and
desires to grow our portfolio.
2. Create and nurture developer interest in residential redevelopment in the City.
WR2020 hosts formal and informal meetings with developers, builders, and investors to
provide them with positive information regarding the City's revitalization efforts. WR2020 staff
provides these parties with land planning services, entitlement research, and insight to the City's
land use objectives. WR2020 has commissioned reports and surveys to identify market analysis
for residential development, commercial redevelopment, and mixed used development
opportunities in the City. WR2020 has invested approximately $100,000 for these efforts.
While these types of investments do not provide return revenue to our organization, they are
necessary elements to nurture developer interest in the City. These reports and surveys provide
developers with research materials that support redevelopment capacity of select properties and
corridors. WR2020 staff participate at local, regional, and national conferences providing
presentations to developer associations, planning associations, realtor associations, and housing
associations representing the City of Wheat Ridge and promoting development opportunity in the
City.
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City Manger R. Young
September 25, 2008
3. Package and market vacant land for new real estate development.
WR2020 provides agency services for the Wheat Ridge Urban Renewal Authority
administering the preparation, solicitation, and proposal review functions for the 44h Avenue
and Wadsworth Corridor redevelopment project. WR2020 prepared a site plan proposing a
mixed use development project consistent with the Wadsworth Corridor Sub Area Plan.
WR2020 generated the solicitation protocol for the Request for Proposals. WR2020 met with
more 25 local and regional developers to pitch the redevelopment proposal. WR2020 has
prepared letters and documentation requesting Jefferson County funding support for the
redevelopment of this site. WR2020 provided direct mail and media publication of the RFP
solicitation to more than 100 developers, and 3 media publications. WR2020 secured Phase I
and Phase II environmental investigation services from the Colorado Brownfield Foundation,
verifying the environmental conditions and liabilities of the site. WR2020 presented the 44th and
Wadsworth Redevelopment project at the Colorado Brownfield Foundation Annual Conference.
These services require considerable staff activity, and administration.
4. Create a low interest renovation loan fund to help homeowners reinvest in their homes.
WR2020 created and manages the Home Investment Loan Program (HIP) providing low interest
financing opportunities for Wheat Ridge home owners to reinvest in, and renovate their homes.
This is a revolving loan fund. As the loans are paid back, the equity will recycle for use in future
loans. WR2020 has administered $250,000 in lending. Our HIP program has initiated
approximately $1.4M in total redevelopment investment impact to the community. This program
is increasing home values in the NRS target areas. WR2020 has allocated an additional
$200,000 for this program for our 2009 fiscal year, with the goal of continuing to add to the
program again in 2010, extending the loan fund balance to $500,000. WR2020 charges modest
loan processing and closing fees to assist in the costs for preparation, closing, and recording of
mortgage and notes for the loans.
As a complement to residential development WR2020 provides incentives to assist small
business development in neighborhoods where it is working to attract new stakeholder families.
WR2020 has created a small business loan program called Building Up Business Loan Program
(BUBL). The BUBL program provides small business on the 38th Avenue corridor with access
to low interest financing to open, expand, and renovate their businesses and properties on 38th
Avenue. WR2020 has invested $150,000 in this lending program. We have closed one business
loan in the amount of $70,000 and are scheduled to close our second business loan within the
next 30 days. WR2020 intends to add an additional $100,000 to this program in 2009 with a
goal of creating a $500,000 revolving loan fund to continue to help small business in the City in
perpetuity.
The BUBL program also provides direct subordinate equity funds to allow business access to
the Small Business Administration's 504 Loan Fund. The SBA 504 program is a nationally
recognized tool for small business development and growth. WR2020 provides business
development tools for the businesses who participate in our BUBL program, by giving access to
small business resource professionals to help the business owners review their business plans,
generate market analysis reports for their businesses and clarify the business's capacity for
growth.
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City Manger R. Young
September 25, 2008
5. Create a community self help initiative to support volunteer driven projects.
WR2020 has initiated neighborhood self help programs, engaging citizens in neighborhoods
where we redevelop properties to participate in beautification and cleanup activities. WR2020
provides dumpsters for community cleanup projects throughout the spring- fall seasons.
WR2020 works with the City's Police Department to identify neighborhoods in distress and
coordinate cleanup projects with property owners.
WR2020 has also participates in the organization of community activities. In 2007, WR2020
provided management and resources to the Wheat Ridge Arts Council and the Wheat Ridge
Business District to host the Taste of the Arts Festival. The festival attracted 2,500 people to the
38`h Avenue Corridor for a day of community celebration. Many of the small businesses located
near the festival area realized significant business activity. This project also engaged citizen
volunteers to assist in the preparation, fund raising, and supervision of the event. This event also
provided the community with a place making opportunity, identifying an area of the City where
citizens want to visit, shop, eat, and walk. Place making is essential to redevelopment, as it
provides the cultural desire for people to go someplace. Developments like Belmar have
incorporated place making to attract residents and shoppers.
6. Create a program to support the upgrade of small apartment complexes.
WR2020 has partnered with a major regional real estate investor to renovate and upgrade an
18 unit apartment / condominium complex. WR2020 is investing approximately $700,000 in
this project. The complex had 14 units that were used as rental properties and 4 units are private
single family ownership homes. The proportion of rental to ownership units creates a hardship
on the families who own their units, by restricting them from refinancing, or selling their
property. The current average value of the condominium units is $93,000. WR2020 is acting as
the redevelopment coordinator of the rental units, and preparing them for sale for home
ownership. WR2020 is working with lending institutions to secure the financing programs for
new buyers. Upon redevelopment, the units are offered for sale from $155,000 to $165,000,
increasing home values and establishing more homeownership.
7. Provide marketing and community branding initiatives.
WR2020 provides public marketing information on the NRS, City's Sub Area Plans,
residential lending programs, small business lending programs, Urban Renewal projects, and
many other community programs and activities. WR2020 provides bi weekly electronic
mailings to its membership, and to our ever expanding contact list, updating people about the
City's planning activities, our programs, and providing education for important legislative
measures that affect economic development and redevelopment in the City.
WR2020 provides leadership and community outreach for the creation of corridor
monument sign design. WR2020 hired a local architect to provide design services for monument
signs. WR2020 hosted citizen input meetings to engage the community in the process to help
determine a design that exemplified the character of the community. WR2020 has presented the
design to the City, and the City is pursuing the appropriate bidding and construction services to
install the proposed monument signage at the Kipling corridor.
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City Manger R. Young
September 25, 2008
WR2020 is also creating neighborhood identification activities by educating
neighborhood members about Community Benefit District (CBD) programs. CBD programs
allow citizens to establish a neighborhood identity, define common goals for neighborhood
improvement and maintenance, and also generate a neighborhood Brand. Our neighborhood
branding activities are taking foot. Real estate trade publications are now advertising properties
in Wheat Ridge with neighborhood brands like Randall Park.
8. Devise a series of neighborhood /city wide, citizen led improvement proiects.
As mentioned above, WR2020 has initiated the Community Benefit District concept to
provide citizens, property owners, and business owners with a process to initiate neighborhood
or city wide improvement projects. The CBD program provides a mechanism for citizens to
work with the City by the establishment of a district and a citizen approved assessment to fund
capital projects, and maintenance services in excess of the basic city services provided in the
community. The CBD program provides a partnership between the City and the citizens to work
together to improve the community and engage citizen leadership.
9. Option Commercial property as a coordinated effort to support the City's commercial
corridor revitalization goals.
WR2020 initiated the 44' and Wadsworth Redevelopment project. The City adopted the
Wadsworth Corridor Sub Area Plan to provide a vision for redevelopment in this corridor.
WR2020 initiated a process with the WRURA to put that plan in action. WR2020 conducts real
estate negotiation and option acquisition services to initiate the redevelopment of this area in
accordance with the sub area plan goals. WR2020 optioned two of the major properties on the
site and is currently negotiating with additional property owners to secure adjacent land that will
aid in the redevelopment of this property.
WR2020 also established a Land Bank rogram where it has acquired commercial property
and accepted City property in an area of 389 Avenue. The Land Bank program is geared at
acquiring vacant, blighted, and underutilized properties and to assemble sufficient acreage to
initiate a comprehensive redevelopment. The program also includes planning services and
property management until a redevelopment project is defined and pursued.
WR2020 currently holds title to two properties on 38`h Avenue and High Court and continues
to inquire about additional real estate acquisition opportunities on this corridor. WR2020 is
leasing the property to a community church. WR2020 has performed a parking analysis, an
initial development design rendering, land survey, and released a redevelopment solicitation for
the property. Two developers have submitted redevelopment proposals, and one is currently
engaged in a due diligence agreement and negotiating the terns of the property's redevelopment.
Additional Activities
WR2020 provides education and leadership opportunities to community members to perpetuate
the advancement of the NRS. WR2020 hosts a series of classes known as the Planning Academy
to educate citizens on the development trends, practices, and issues that promote sustainable
redevelopment in the Metro Denver area. WR2020 engages the service of regional and national
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City Manger R. Young
September 25, 2008
builders and developers to present case studies and educate our local citizens on the necessity of
technical policy changes that will provide greater opportunity for redevelopment in the City.
WR2020 also hosts monthly committee meetings with citizens, members, and city staff to
promote education and advocacy for the policy changes that City Council must consider to assist
in reaching the NRS goals. WR2020 often participates at public meetings providing testimony in
support of policy initiatives that will foster redevelopment opportunities. WR2020 also takes
leadership positions to promote the success of ballot initiatives and ordinance adoption.
2009 WR2020 Budget and Fundin¢ Impacts
WR2020 submits the attached our 2009 Budget as designed and approved by the Board
of Directors on September 23, 2008. Our budget runs a fiscal year starting July 1" and ending
June 300 of each year. Under our budget, we have allocated funds as discussed above for
continued real estate redevelopment, residential lending, small business lending, Community
Benefit District organization, citizen self help programs, advocacy for policy change, citizen
education, continued real estate option and acquisition services for WRURA, and all the other
programs identified above. In addition WR2020 anticipates the need to provide staff support and
citizen education for many City initiatives such as the upcoming Urban Renewal Studies on the
Kipling Corridor, the acquisition of financing tools for the 44`h and Wadsworth Redevelopment
project, development of an environmental assessment database program for real estate located in
NRS corridors, and continued planning services for private land owners that will indicate
development options that meet the goals of the NRS. WR2020 will continue to support many
local service organizations, our public schools, and our arts groups that provide community
enhancement.
WR2020 developed our 2009 budget with the understanding that it should commit itself
to provide the services outlined in the NRS to the community with the level and capacity that the
NRS has identified. Significant budget reductions in the amount of $1 M will disable our
capacity to provide services and programs that promote the success of the NRS. Significant
funding cuts to WR2020 will eliminate the ability of the organization to act fast and implement
the brick and mortar development activities outlined in the NRS. Substantial funding cuts will
disable WR2020 from conducting the community outreach, education, and development services
City Council adopted in the NRS and commissioned WR2020 to provide.
Funding cuts will disable WR2020 from allocating more funds to our residential and
small business loan programs. This will have an adverse effect on the City's goal of creating
reinvestment opportunities for our citizens and generating small business growth. WR2020 has
allocated $300,000 towards these programs for 2009. This allocation is important to provide
more resources to our revolving loan funds, which currently have only small amounts of
returning equity. The allocation keeps the programs opreating as borrowed funds are
replenished. Reducing our funding will significantly reduce or eliminate the capacity to provide
additional funds to these programs and substantially slow down the programs' impacts.
WR2020's real estate redevelopment activities are consistent with two NRS objectives.
WR2020 has committed approximately $2.3M in brick and mortar residential and commercial
real estate development. WR2020 intends to continue to revolve the investments we have made
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City Manger R. Young
September 25, 2008
in real estate development to pursue the redevelopment strategies codified in the NRS.
Management and oversight of these brick and mortar projects is required to continue the
program. Funding cuts to these programs will require reallocation of recycled equity to
oversight and management operations. Reallocation of the funds from redevelopment to
management activities will reduce the balance of the portfolio and diminish the impact WR2020
projects provide in the community.
Many of WR2020's operations and programs do not yield returning equity or revenues.
These programs include the education and outreach programs outlined above. These programs
are critical to the success of the NRS because they provide the basis for citizen support for
technical policy changes that establish redevelopment opportunities in the City. While some of
these programs can continue on a limited basis, it is necessary for City Council to provide clear
direction to WR2020 on the strategic goals it desires to achieve, and the community outreach it
needs, to allow WR2020 to verify what programs get cut and what programs remain.
WR2020 has made a significant investment in the Community Benefit District program.
This program, if adopted by City ordinance, will provide additional resources to the City and the
formed districts to improve and maintain neighborhoods. It is anticipated that WR2020 will
provide the program management of the formed districts. WR2020 sees this as a potential
revenue generation opportunity. WR2020 has allocated $100,000 of our 2009 budget towards
the development and startup of CBD's in the community. This funding is necessary to assure that
the startup process of our first CBD's is managed appropriately. It also provides resources for
community outreach and education to engage citizens and businesses in taking the steps
necessary to create districts in the NRS corridors. The CBD program meets many of the citizen
lead community improvement project goals of the NRS. Limiting funding to WR2020 will
eliminate its ability to implement the program and meet the NRS objectives.
Wheat Ridge 2020 manages the option and redevelopment solicitation process for the
44a' and Wadsworth Redevelopment project. This process requires multiple staffing hours and
administration activities. At times, it has been referenced that WR2020 was created by the City
to serve in this capacity, repositioning long underutilized property for redevelopment.
WR2020's planning activities and community outreach provides the nexus for citizen
acceptance of these types of projects. Over the past two years, WR2020 has engaged adjacent
property owners and convinced them that projects like these are beneficial to the community.
Our advocacy has turned former naysayers into present advocates. The services provided to the
WRURA, the City and our citizens in performing the repositioning of this site, are core
principals of the NRS objectives. Funding reductions will decrease WR2020's ability to manage
projects like this.
Alternative Funding Recommendations:
Wheat Ridge 2020 currently receives funding from unrestricted City general fund
sources. The benefit of such fending is that WR2020's programs and projects are not subject to
conditions imposed by funding sources like HUD, HOME, or other Federal programs that tie
funding to helping specific social ailments. WR2020 is always interested in securing alternative
and additional funding from sources other than the City. WR2020 has received grants from
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City Manger R. Young
September 25, 2008
LMC Foundation, Jefferson County Realtors Association, Colorado Brownfield Foundation, and
a few others. These grants were received for specific uses. As such, the following
recommendations for alternative funding may provide limits to our programs and investment
options.
Community Development Block Grant (CDBG)
CDBG funds are allocated annually to the City from Jefferson County to provide brick
and mortar reinvestment to the community that benefits citizens who are defined as low and
moderate income earners. These funds can be used for housing projects, lending programs, and
infrastructure improvements in areas of the community that meet funding appropriation
purposes. WR2020 could potentially use these funds to promote our lending and real estate
development activities. However, the funds provided for these purposes must be used to benefit
low and moderate income families. Additionally, Jeferson County will need to approve the
programs and projects verifying they meet the purpose of the funding source.
While WR2020 can continue its operations by incorporating CDBG funds in its budget,
the impact of the projects and programs will not meet the City's desired NRS objective of
attracting high income earning stakeholder families, or redeveloping properties to house such
families. WR2020 will work to seek additional regional and federal funding sources but cautions
that these sources do not enable the flexibility and fast action City Council desired when it
created WR2020
Proiect Management Fees
WR2020 currently manages the WRURA 44~h Avenue and Wadsworth Blvd. project.
This is specifically the type of project WR2020 was formed to manage. WR2020 has not
requested a fee from the WRURA to manage this project. If the City desires the continuance of
WR2020 management on this project and others like this, WR2020 could assert a Project
Management Fee defined by a contract to cover the administrative costs.
The assertion of a project management fee is not consistent with the methodology for
WR2020's creation. WR2020 was created with a designated funding source to provide fast
acting leadership. Project management fee allocations will require additional layers, contracts,
reporting, and obligations on WR2020 and the municipal authorities we help to move projects
forward.
Program Fees
Currently WR2020 does not charge citizens to participate as members, enroll in the
Planning Academy, information services with respect to real estate development, provision of
neighborhood planning services, and public policy advocacy support. While these activities are
essential to customer service and to nurture and facilitate development in our community, they
require substantial man hours and have direct and indirect costs that are not recoverable.
WR2020 could initiate a fee schedule to charge citizens, neighborhood groups, and developers
for programs and services. The detriment to this procedure is that the WR2020 organization has
been positioned in the community by City Council and Staff as a provider of free services to
enable the implementation of the NRS objectives.
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City Manger R. Young
September 25, 2008
Rental Income
WR2020 currently redevelops residential properties to reduce rental activities and
increase homeownership. With the decline in home sales and increase in foreclosures, the rental
housing market is becoming increasingly stronger. WR2020 could generate income by renting
residential properties. This change in scope of residential redevelopment is a significant
deviation from the NRS objectives. The implementation of this new strategy will need the
support of City Council because of its significant departure from our commissioned services and
NRS objectives.
Reduced or Waived City Development and Permitting Fees
WR2020's contractors are required to submit for redevelopment permits. These permit
fees are paid by WR2020 through our project development funds. hi some cases the permit and
use fees are approximately 5% of our construction costs. Waiving these fees will aid in limiting
lost overhead costs to our redevelopment programs.
Additional alternative funding sources may be available, but additional time is required to
investigate such sources and verify the benefits and detriments of the sources with respect to the
NRS objectives.
Conclusion
Wheat Ridge 2020 greatly appreciates the strong relationship we have with the City of
Wheat Ridge and firmly believes that our combined attention on Community and Economic
Development Strategies will foster sustainable investment and development in our community.
WR2020 also understands that City Council needs to balance its strategic goals with the realities
of the economic conditions we now face. WR2020 believes that combined efforts between City
Council and our Board are essential to the implementation of both of our Strategic Plan Goals,
and the Neighborhood Revitalization Strategies. If it is necessary for City Council to reduce
funding from WR2020, it is essential for City Council to provide guidance to our organization in
determining what strategy areas it desires our organization's continued efforts. It will be
necessary for City Council to prioritize the NRS Goals it wants WR2020 to fulfill. By doing so,
WR2020 can identify to Council our capacities in fulfilling its altered NRS objectives and
outline the specific program changes and limitations.
WR2020 greatly appreciates your involvement and continued support.
Thank you,
Robert J. Osborn, Esq.
Executive Director
Page 10
9/30/2008
Ordinary Income/Expense
Income
4100 • Grants
Other Grants
Wheat Ridge 2020, Inc.
Profit Loss DRAFT Budget
Fiscal Year'08-'09
Board
Approved
Budget
Nearest ($100)
Jul '08 - Jun 09
1,500,000
10,000
4,000
4300-Membership
4500-Fundraising
4501-WR Sampling/Wines&Dines
4502-Dumpster Days
4550. HIP Loan Fees
HIP Loan Interest
4600. BUBL Loan Fees
4650 • Gain/(Loss) Sale of Property
4750. Donations
4751 • Planning Academy Sponsors
4752 • Taste of the Arts
4753 • Tree-a-thon
4750. Donations - Other
Total 4750. Donations
4790. Rental Income
Total Income
12,500
2,500
6,000
1,500
50,000
1,000
1,500
500
2,000
5,000
16,200
1,607,700
1,607,700
Expense
6000 • General & Administration
6010 • Personnel Expenses
6011 • Salaries
6011.01-PTO Current Year
6012 • Payroll Taxes
6013.403 b Pension Exp
6015 • Health Insurance
6016 • Training
6250. Consult serv, Confer, Mbr Educe
6016 • Training - Other
Total 6016 • Training
6017 • Accrued PTO Allocation
6018 • Workman's Compensation
6020 • Payroll Services
6050 • Recruiting/Relocation Costs
6070. Bonus Allocation
6075 • Employee Memberships & Licenses
6010 • Personnel Expenses - Other
Total 6010. Personnel Expenses
6100. Operations
6110•Rent
6120 • Utilities
6130. GL Insurance
6132. Bank Service Fees
6133 - Reconciliation Discrepancies
6900-Depreciation Expense
Total 6100. Operations
341,900
35,200
31,700
15,500
25,000
4,000
6,000
10,000
3,900
2,300
100
10,000
15,000
4,000
494,600
24,000
1,800
900
10,000
26,700
WR2020 BudgetDRAFT0809#8forF1ob0929.x1s
9/30/2008
Wheat Ridge 2020, Inc.
Profit Loss DRAFT Budget
Fiscal Year '08-'09
6200. Community Devel Activities
6205. Community Devel Intern
6210. Community Devel Proj Mkting
6220 • WR2020 Comm Dev NID Prog/Grants
6225 • WR Taste of the Arts
6230 • WR Sampling/Wines & Dines
6235 • WR Dumpster Days
6240 • WR Planning Academy
6822. Class Supplies- Planning Academ
6823. Meals-Planning Academy
6824. Speaker Fees-Planning Academy
6825 • Contingency-Planning Academy
Total 6240. Planning Academy
6260 • Annual Meeting
6270. Community Project Grants
6280 • Block Party Grants
6285-Ambassador Program
6291 • Landscape Projects
6291.01 • Landscape-4165 Pierce-Pinto
6291.02 • Landscape-3880 Chase-Vanderveen
6291.03 • Landscape-3895 Chase St
6291.04 • Landscape-3715 Marshall St
6291 • Landscape Projects - Other
Total 6291 • Landscape Projects
6295 • Design Ideas
6295.01 • Ranch House Idea Book
Total 6295 • Design Ideas
6200. Community Devel Activities - Other
Total 6200. Community Devel Activities
6300. Financial & Development Ins
6310 • Residential Insurance
Total 6300 • Financial & Development Ins
6500. Office Expense
6140. Communications
6510. Office Supplies
6515. Committee Refreshments
6520. Dues & Subscriptions
6521 • Corp Membership/Conference Fees
6530. Equipment Maint. & Repairs
6540. Office Equipment
6550. Postage
6560. Printing & Reproduction
6561 • Resid & Comm Finance Prog Print
6563. BOD Printing
6570 • Travel & Entertainment
6571 • Travel
6572. Meals
6573. Mileage
6574 • Lodging
Total 6570 • Travel & Entertainment
6999 • Miscellaneous Expense
Total 6500. Office Expense
Approved
Budget
Nearest ($100)
Jul '08 - Jun 09
2,500
10,000
100,000
5,000
20,000
2,500
3,200
3,200
4,000
25,000
2,000
10,000
6,000
6,000
30,000
220,200
19,000
6,000
5,000
200
10,000
7,000
1,100
2,200
1,000
2,300
100
6,000
3,900
2,700
13,800
9,000
76,700
W R2020 13udgetDRAFT0809#8forRob0929.x1s
9/30/2008 Wheat Ridge 2020, Inc.
Profit Loss DRAFT Budget
Fiscal Year '08-'09
Approved
Budget
Nearest ($100)
Jul '08 - Jun 09
6600 • Professional Services
6610 • Legal & Accounting & Audit 31,000
6620. Consultants 12,000
Total 6600 • Professional Services 43,000
6700. Finance & Resource Development
6710. Residential Lending
6720. Commercial Lending -
6730. Real Estate Develop Projects
6731 • RE Develop Projects-Consultants 12,000
6732- RE Develop Intern 2,500
6730 • Real Estate Develop Projects - Other 600
Total 6730 • Real Estate Develop Projects 15,100
6740. RE Survey/PlanMvestigations 40,000
6750 • RE Coordination Admin Fees 15,000
Total 6700. Finance & Resource Development 70,100
6800 • Public Relation Projects
6810 • Marketing 60,000
6820 • Events & Promotions 2,500
Total 6800 • Public Relation Projects 62,500
6000 • General & Administration - Other
1,000
Total 6000. General & Administration
994,800
Allocation for Lending and Development Projects
505,000
Total Expense Allocation 1,499,600
Net Ordinary Income 107,900
Other Income/Expense
4200. Management Fee Income 2,500
9100. Interest Income 55,000
57,500
Net Other Income 57
Net Income 165,400
WR2020 BudgetDRAFT0809#8forRob0929.x1s
WHEAT RIDGE 2020
d,
i Partners in a Vibrant Wheat Ridge
WR2020 Summary of Activities
1. Real estate development activities to renovate houses in target areas.
• WR2020 has invested in single family detached homes in the approximate amount of
$3.OM.
• WR2020's completed single family detached homes are selling at prices ranging from
$200,000 to $270,000 which is 125% to 170% higher than the average home prices in the
revitalization corridors.
• The total impact of our renovation projects for single family homes is approximately
$4.8M, or 160% greater than our investment.
2. Create and nurture developer interest in residential redevelopment in the City.
WR2020 has invests approximately $100,000 annually for these efforts.
WR2020 staff participates at local, regional, and national conferences providing
presentations to developer associations, planning associations, realtor associations, and
housing associations representing the City of Wheat Ridge and promoting development
opportunity in the City.
3. Package and market vacant land for new real estate development.
• WR2020 provides agency services for the Wheat Ridge Urban Renewal Authority
administering the preparation, solicitation, and proposal review functions for the 440
Avenue and Wadsworth Corridor redevelopment project.
• WR2020 provided direct mail and media publication of the RFP solicitation to more than
100 developers, and 3 media publications.
• WR2020 secured Phase I and Phase II environmental investigation services from the
Colorado Brownfield Foundation, verifying the environmental conditions and liabilities
of the site.
• WR2020 presented the 44h and Wadsworth Redevelopment project at the Colorado
Brownfield Foundation Annual Conference. These services require considerable staff
activity, and administration.
4. Create a low interest renovation loan fund to help homeowners reinvest in their homes.
• WR2020 created and manages the Home Improvement Loan Program (HIP)
• WR2020 has administered $250,000 in lending.
4350 Wadsworth Blvd., P.O. Box 1268 Wheat Ridge, CO 80034
Phone: (720) 259-1030 Fax: (303) 940-9332
• Our HIP program has initiated approximately $I AM in total redevelopment investment
impact to the community.
• WR2020 has allocated an additional $200,000 for this program for 2009 fiscal year
• goal to add to the program and grow the loan fund balance to $500,000
• WR2020 has created a small business loan program called Building Up Business Loan
Program (BUBL).
• WR2020 has invested $150,000 in this lending program.
• WR2020 intends to add an additional $100,000 to this program in 2009 with a goal of
creating a $500,000 revolving loan fund to continue to help small business in the City in
perpetuity.
• WR2020 provides business development tools for the businesses who participate in our
BUBL program, by giving access to small business resource professionals to help the
business owners review their business plans, generate market analysis reports for their
businesses and clarify the business's capacity for growth.
5. Create a community self help initiative to support volunteer driven projects.
• WR2020 provides dumpsters for community cleanup projects throughout the spring -
fall seasons. WR2020 works with the City's Police Department to identify
• Taste Of the Arts 2007
6. Create a program to support the upgrade of small apartment complexes.
• WR2020 is investing approximately $700,000 in an Apartment renovation Project at
the 6900 Block of 48th Avenue.
• Turning 14 units that were used as rental properties and 4 units are private single
family ownership homes.
• The current average value of the condominium units is $93,000.
• Upon redevelopment, the units are offered for sale from $155,000 to $165,000,
increasing home values and establishing more homeownership.
7. Provide marketing and community branding initiatives.
• WR2020 provides weekly electronic mailings
• WR2020 provides education for important legislative measures that effect economic
development and redevelopment in the City.
WR2020 has also provided leadership for corridor monument sign design.
WR2020 hired a local architect to provide design services for Kipling monument
signs.
• WR2020 hosted citizen input meetings to engage the community in the process to
help determine a design that exemplified the character of the community.
• WR2020 is created the Community Benefit District (CBD) programs.
8. Devise a series of neighborhood/ city wide citizen lead improvement projects.
• The CBD program provides a mechanism for citizens financed and led capital
projects, and maintenance services in excess of the basic city services.
4350 Wadsworth Blvd., P.O. Box 1268 Wheat Ridge, CO 80034
Phone: (720) 259-1030 Fax: (303) 940-9332
The CBD program provides a partnership between the City and the citizens to work
together to improve the community and engage citizen leadership.
9. Option Commercial property as a coordinated effort to support the City's commercial
corridor revitalization goals.
• WR2020 initiated the 44t` and Wadsworth Redevelopment project.
• WR2020 initiated a process with the WRURA to put that plan in action.
• WR2020 conducts real estate negotiation and option acquisition services to initiate
the redevelopment of this area in accordance with the sub area plan goals.
• WR2020 also established a Land Bank program where it has acquired commercial
property and accepted City property in an area of 38M Avenue.
Additional Activities
• WR2020 provides education and leadership opportunities to community members to
advance the NRS.
WR2020 hosts the Planning Academy to educate citizens.
• WR2020 also hosts monthly committee meetings with citizens, members, and city staff to
promote education and advocacy for the policy changes that City Council has requested
to assist in reaching the NRS goals.
• WR2020 often participates at public meetings providing testimony in support of policy
initiatives that will foster redevelopment opportunities.
• WR2020 also takes leadership positions to promote the success of ballot initiatives and
ordinance adoption.
4350 Wadsworth Blvd., P.O. Box 1268 Wheat Ridge, CO 80034
Phone: (720) 259-1030 Fax: (303) 940-9332