HomeMy WebLinkAboutStudy Session Agenda Packet 09-18-17
STUDY SESSION AGENDA
CITY COUNCIL CITY OF WHEAT RIDGE, COLORADO
7500 W. 29th Ave.
Wheat Ridge CO September 18, 2017
6:30 p.m.
Individuals with disabilities are encouraged to participate in all public meetings sponsored by the City of Wheat Ridge. Call Sara Spaulding, Public Information
Officer 303-235-2877 at least one week in advance of a meeting if you are
interested in participating and need inclusion assistance.
Citizen Comment on Agenda Items
1. Staff Report(s)
2. 2017 Justice Assistance Grant Public Notice
3. Security Assessment Report
4. Swiss Flower Shop TIF
5. Activate 38 Demonstration Project
6. Elected Officials’ Report(s)
ADJOURNMENT
Memorandum
TO: Mayor Jay and City Council THROUGH: Patrick Goff, City Manager
Daniel Brennan, Chief of Police FROM: Dave Pickett, Division Chief DATE: August 30, 2017 (for September 18 Study Session)
SUBJECT: Staff Report: 2017 Justice Assistance Grant
ISSUE:
The Wheat Ridge Police Department (WRPD) received an Edward Byrne Justice Assistance Grant (JAG) for the years 2017 and 2018 in the amount of $10,178. This grant can be used for the following purposes:
• Law enforcement programs
• Prosecution and court programs, including indigent defense
• Prevention and education programs
• Corrections and community corrections programs
• Drug treatment and enforcement programs
• Planning, evaluation, and technology improvement programs
Historically, the department has used these grant funds to purchase equipment or for crime
prevention programs. The Police Department plans to use the 2017 grant to pay part of the cost of a stationary Automatic License Plate Reader (ALPR). This unit would be placed in areas of the city experiencing crimes, where the ability to identify vehicles moving in and out of the area would greatly assist our investigation efforts. This unit would also alert designated officers if a
vehicle entered the area that was stolen or associated with a wanted person.
FINANCIAL IMPACT: An ALPR suitable for mounting on a trailer will cost $16,678. This price does not include the trailer mount, which will be budgeted through separate funds. The JAG grant would cover
$10,178, and the balance of the cost would be covered with asset forfeiture funds.
BACKGROUND: A stationary ALPR is a system that involves a series of cameras that record the license plates and vehicle descriptions of all vehicles passing within its designated area. It then compares those
plates and descriptions with those entered into state and national databases as stolen or associated
with wanted individuals. This information can be immediately transferred to patrol officers working in the area. The information that the ALPR captures is regulated by state statute.
Staff Report: 2017 Justice Assistance Grant
September 18, 2017
Page 2 Wheat Ridge only maintains ALPR data in accordance with state statute and has a policy governing ALPR use.
The department currently has a mobile ALPR mounted on a patrol vehicle that is used to provide directed patrol in designate areas. The proposed unit would be housed in a trailer that would be parked at specific locations and would record license plates even if the associated beat officer were on another call or outside the area. Areas experiencing notable criminal activity such as the
Kipling corridor would benefit from this system.
RECOMMENDATIONS: Grant requirements include advising City Council as well as seeking input from community members on the proposed use of grant funds. The Police Department has posted the information
concerning this grant on its website and advertised this study session meeting as an opportunity
for citizens to comment. Staff is requesting City Council approve the use of JAG funds to purchase a stationary Automatic License Plate Reader system.
Memorandum
TO: Mayor and City Council FROM: Patrick Goff, City Manager DATE: September 13, 2017 (for September 18, 2017 Study Session)
SUBJECT: Facility Security Assessment Report
ISSUE: On May 22, 2007, City Council awarded a contract to iParametrics, LLC to conduct security assessments for the Wheat Ridge Municipal Building, Wheat Ridge Recreation Center and the Wheat Ridge Active Adult Center. The scope of work included security assessment reports for each
facility and development of a security master plan to include recommendations for facility security
upgrades. Representatives from iParametrics will provide a summary of the security assessment report to the Mayor and City Council at the September 18, 2017 study session. BACKGROUND: It today’s society, there has been a paradigm shift in the various ways in which government entities
encounter and face threats. Security of government facilities and employees are more at risk in today’s threatening environment than ever before. The challenge is how to continue to provide open, quality government services to citizens and customers while balancing facility and team member safety and security.
Three facilities, with high public use and visitation are included in the initial assessment. These assessments identify potential security risks and include recommendations related to interior and exterior physical improvements that could be implemented to mitigate risk to employees and customers in the buildings.
Attached is the Security and Risk Assessment Public Report. The more detailed Security Master Plan that includes recommendations for facility security upgrades will remain a confidential document as disclosure of its contents would be contrary to the public interest and would identify current organizational security vulnerabilities. The Security Master Plan is therefore unavailable
for public inspection pursuant to C.R.S. 24-72-204(2)(a)(VIII).
ATTACHMENT: 1. Security and Risk Assessment Public Report
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Security and Risk Assessment
Public Report
Wheat Ridge, Colorado
September 18, 2017
Attachment 1
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THIS PAGE INTENTIONALLY LEFT BLANK
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Table of Contents
1. Background ...................................................................................................................................... 4
2. Executive Summary .......................................................................................................................... 5
3. Risk Assessment Process ................................................................................................................. 6
4. Municipal Building ........................................................................................................................... 9
5. Recreation Center ............................................................................................................................ 9
6. Active Adult Center ........................................................................................................................ 10
7. General Recommendations for Improvement .............................................................................. 10
Appendix A – Design Basis Threat .............................................................................................................. 12
Appendix B – References and Acknowledgements .................................................................................... 16
Appendix C – Acronyms .............................................................................................................................. 17
Appendix D – Definitions ............................................................................................................................ 18
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1. Background
The Protection of Assets is a complicated and daunting task for any organization. When it extends
to a Municipality the size of Wheat Ridge with real property facilities, housing over 250 employees,
and providing direct services to more than 2,000 city residents and visitors each day, that task can
be overwhelming without adequate planning and resources. In order to accomplish the goals for
the security of the City facilities there are four critical steps:
• Identify the assets to be protected,
• Identify the threats to be protected from,
• Develop standards for adequate protection, and
• Establish a Risk Management Process to ensure adequacy.
The city has taken initial steps to establish a security program; however, these actions have
highlighted the need for a more consolidated and comprehensive strategy to ensure security
management approaches that provide an adequate level of protection for all facilities in keeping
with the city goals.
Therefore, the City of Wheat Ridge has contracted with iParametrics, LLC to deliver a Security Risk
Assessment Report that addresses the security risk based on requirements of each particular site
as well as a Master Plan including cost estimates and recommendations. Pursuant to C.R.S. 24‐72‐
204(2)(a)(VII) the full report is confidential; the disclosure of its contents would be contrary to the
public interest and is therefore unavailable for public inspection. This report s however; is
classified as Official Use Only and the Contents may be distributed with permission of the Wheat
Ridge City Manager.
In accordance with the terms of the agreement, the assessment includes the following:
• A Security threat assessment to identify security related threats from internal and external
sources during and after operating hours.
• Crime analysis.
• Identification of critical assets and pair most likely threats to identify most likely security
scenarios on which to base the security program, analyze vulnerabilities, assess impacts of
threat scenarios, identify actions that mitigate risk and provide an analysis of mitigation
actions.
• A review of security staffing models and staffing levels at each site.
• A review of incident reports for the past two years.
• A physical evaluation of each site during and after operating hours. (Restricted)
• Review of security systems (access control, intrusion detection, video surveillance, lock and
key control).
• Interviews with staff members.
• A physical evaluation of areas surrounding the buildings including loading docks, service
areas, parking lots.
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• A review of security related policies and procedures.
• A review of security training.
• A review of security related emergency response documents.
• A review of the City’s mass notification capabilities.
The Security Risk Assessment and Master Plan includes the following:
• Technical and physical security measures to mitigate or reduce risk to staff, information
and physical assets (facilities) including specifications for any recommended system
installations.
• Security Awareness programs intended to reduce victim assisted crimes.
• Modification to existing policies and procedures as appropriate.
• Initial incident response measures for security driven events.
• Implementation strategies with detailed security design cost estimates for recommended
measures
• Two presentations to management to review findings and recommendations.
2. Executive Summary
In consultation with the Executive Management Team (EMT) and key stakeholders, iParametrics
conducted a security threat assessment of the existing security platform/posture. Throughout the
week of July 10, 2017, the security specialists analyzed the Municipal Building, the Recreation
Center and the Active Adult Center. The assessment included:
• Analysis of crime statistics and incident reports (Design Basis Threat (DBT) evaluation)
• Identification of critical assets
• Security staffing and organizational structure
• Review of security operations
o Policies, plans and procedures
o Building security systems installation and maintenance
o Response force performance
The assessment team conducted over 75 interviews and visited the three facilities during
operational hours and after hours. These visits allowed the team to review the physical security
infrastructure of the properties, security training, emergency response documents and mass
notification capabilities at each location. Detailed analysis of each facility is provided in the
restricted report, here are our key observations.
a. The City of Wheat Ridge is part of the Denver metropolitan area and is located along
several regional travel routes. Due to the location of the City crime rates from adjacent
jurisdictions effect all security aspects of municipal properties.
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b. The Municipal Building is an aging facility that with its current configuration and
infrastructure does not provide for the effective employment of modern security
enhancements.
c. The city does not have a single point of contact for security or facility security related
incidents.
d. Visitor access control. Balancing the need to provide a full host of City services to the
community, while still providing effective protection to employees and facilities is at the
core of an effective risk management program.
e. Enhancements to better facilitate the use of a centralized online process for the reporting
of security related incidents.
f. Enhancements to the electronic security systems.
g. Establish a city wide operational mass notification system.
h. Establish city wide security policies and procedures.
3. Risk Assessment Process
Our process, which has been successfully implemented on several thousand government facilities,
is in conformance with Interagency Security Committee (ISC) Risk Management Process for
Government Facilities, ASIS SPC.1 and RIMS RA.1‐2015, ISO3100, ISO/IEC 31010:2009. This
methodology allows us to assess target value from the attacker perspective (essentially from the
outside looking in), assess risk from the client perspective (essentially inside looking out) as well as
give asset owners a roadmap forward in mitigating and recovering from an undesirable event.
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Figure 3.1 – Risk Process and System Solution for Risk Assessment and Mitigation
Risk identification ascertains the sources and nature of risk and the effect of uncertainty on
achieving the organization’s objectives. While this can be accomplished using a range of
techniques for identifying the nature and sources of risk, they will all contain the following
components, along with an understanding of the interplay between these components for a
comprehensive identification and characterization of the associated risks:
• Asset and service identification, valuation, and characterization;
• Threat and hazard analysis;
• Vulnerability and capability analysis; and
• Criticality and impact analysis.
Our formula for the calculation of risk follows the equation:
THREAT x VULNERABILITY x CONSEQUENCE (IMPACT) = RISK
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a. Developing the Design Basis Threat
Using the output from the asset identification, valuation and characterization phases we
considered sources of risk that create uncertainty in achieving the City’s objectives. We
determined what are the threats and/or opportunities associated with potential risk events (risk
pairings). The output of the threat analysis assessment is a comprehensive list of threats and
opportunities focusing on prioritizing the most relevant to the achievement of objectives and an
estimate of the likelihood of each threat occurring (i.e., an intentional/malevolent event or
dependency/proximity hazard).
For Intentional/Malevolent Threats such as acts of vandalism, theft or terrorism, likelihood is
based on the adversary’s objectives and capabilities and the attractiveness of the region, facility,
and threat/asset pairing relative to alternative targets. We worked directly with the Department of
Homeland Security (DHS) Fusion Center, the Colorado Department of Public Safety and the law
enforcement officials from Wheat Ridge and Jefferson County to leverage knowledge of threat
intelligence from our Federal Risk Programs to develop clear postulated threat data based on real
world statistics and intelligence to create a comprehensive list of specific human threats and their
likelihood of occurring to the City and its critical assets.
b. Making the Facility Security Level (FSL) Determination and Vulnerability Analysis
The FSL determinations for City facilities direct the user to a set of baseline standards customized
to address site‐specific conditions. It applies to all facilities whether City‐owned or leased, to be
constructed, modernized, or purchased. This determination serves as the basis for implementing
protective measures under the prescribed security criteria and standards. The FSL determination
ranges from a Level I (lowest risk) to Level III (highest risk). Five key factors are taking into
consideration when determining the FSL:
• Mission Criticality
• Symbolism
• Facility Population (to include visitors)
• Facility Size
• Threat to Tenants
The Municipal Building assessment determined it to be a Level III, indicating that the facility
requires a HIGH Level of Protection (LOP). The Recreation Center and Active Adult Center
assessment determined them to be a Level II, indicating that these facilities require a MEDIUM
LOP. The FSL should be reviewed and adjusted, if necessary, as part of each initial and recurring
risk assessment.
c. Impact Analysis
Impact and Consequence Analysis provides a measurement of impact (both criticality and
consequence) of the undesirable events relative to an organization’s operation. It measures the
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impact of what losing a tangible or intangible asset, activity, or function will have on the
operations of the organization.
The criticality of an asset, activity, or function can be intrinsic or derivative. The intrinsic criticality
indicates the direct value of the asset, activity, or function in achieving the objectives of the
organization. The derivative criticality indicates the indirect consequences of the risk event, and
how the resultant consequences, indirectly related to the asset, activity, or function, will affect the
organization in achieving its objectives. We considered the following elements in evaluating
impact:
The value of the asset to on‐going operations and value generation;
The value of the asset to internal and external stakeholders;
Timeframe of criticality – the time period an asset can be unavailable before effects are
significant;
Relational affects: the effect on other assets and processes; and
Public Relations: the impact on brand, image and reputation.
4. Municipal Building
The Municipal Building is located on a 9‐acre site, in the southern most
end of Wheat Ridge, Colorado. The area is a mix of professional offices,
retail businesses, medical offices, a church, a city park and private
residences. The building is a multi‐story, single‐tenant structure built
primarily of steel, concrete block, brick and glass panels with a roof
composed of steel supports, metal roofing material or a rubberized
membrane. Parking is located on all sides of the facility.
The City of Wheat Ridge provides direct service to the public at this
location. Visitors to the administrative portions of the facility are directed to the first‐floor public
lobby. The lobby is staffed with a receptionist during most public service hours. Access to the
building elevator is from the first‐floor public lobby.
The facility is equipped with an electronic Access Control System (ACS) and manually keyed locks.
The Municipal Building has several perimeter entrances and exits. All doors are operational and
can be properly secured either electronically or by key.
5. Recreation Center
The Wheat Ridge Recreation Center is located on a 5‐acre site, 2 miles
northwest of the City Municipal Building. The area is a mix of retail
businesses, medical offices, city and county parks and private
residences. The building is a multi‐story, single‐tenant structure built
primarily of steel, concrete block, brick and glass panels with a roof
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composed of steel supports, metal roofing panels, an EMPT membrane overlaid with rock ballast.
Access to the parking areas is uncontrolled.
The City of Wheat Ridge provides direct service to the public at this location. Visitors access the
facility from the public entrance on the east side of the building. The lobby is staffed with up to
three receptionist/cashiers during peak public service hours located inside the public lobby.
Visitors are not screened nor are they escorted while on site. Access to the building elevator is
from the north hallway adjacent the gym.
The facility is equipped with an electronic ACS and manually keyed locks.
The Recreation Center has numerous perimeter entrances and emergency exits. All doors are
operating properly.
The Parks and Recreation division have established emergency plans for medical emergencies, and
some security procedures.
6. Active Adult Center
The Wheat Ridge Active Adult Center is located on a 1‐acre site, 1‐mile
northeast of the city center. The area is a mix of private residences, a
private and city park. The building is a single‐story, single‐tenant
structure built primarily of wood studs, brick and glass panels with a
roof composed of wood spanning supports and asphalt shingles. Parking
is located on the west and north sides of the facility.
The City of Wheat Ridge provides direct service to the public at this
location. Visitors access the facility from the public entrance on the
west and east side of the building. The lobby is staffed with a receptionist/cashier. Visitors are not
screened nor are they escorted while on site.
Access control consists of an ACS and manually keyed locks.
The Recreation Center has six perimeter entrances and exits. All doors are operating properly.
The Parks and Recreation division have established emergency plans for medical emergencies, and
some security procedures.
7. General Recommendations for Improvement
a. Create/Assign a City Security Director
b. Make improvements to the electronic security systems (ESS)
c. Develop clear and standardized policies throughout the city for visitor management, access
control, security response and cash handling.
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d. Develop an incident reporting and tracking system.
e. Develop a strategy for mass notifications.
f. Develop a security awareness training program.
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Appendix A – Design Basis Threat
1. Background
Wheat Ridge, Colorado is a western suburb of Denver located in Jefferson County. As of 2016, the
population was 31,372, an increase of 4% or 1,145 as of 2010. The city has a total area of 9.56
square miles with a population density of 3,244 people per square mile. As a suburb of Denver,
Wheat Ridge is part of both the greater Denver Metropolitan Area and the Front Range Urban
Corridor. It borders other communities on all sides including Arvada to the north, Lakeside,
Mountain View and Denver to the east, Lakewood to the south, Applewood to the southwest and
Fairmont to the northwest.
The City has over 250 employees working in several facilities throughout the City. Some employees
work in jobs requiring them to work outside of City controlled facility and interact with the
community on a face‐to face basis. These interactions include site visits, facility inspections and
delivery of services. The remainder of City employees works in forward facing offices where face
to face contact with customers is essential to the mission of serving the community. The vast
majority of these exchanges occur without incident even in some of the most serious cases.
However, in a small number of these cases, the contact becomes hostile, threatening and
occasionally dangerous. The threats addressed in this report are those most likely to occur in and
around City employees, facilities and customers.
The following Design Basis Threat is based on, and in certain cases excerpted from documents and
information provided by:
• Department of Homeland Security Interagency Security Committee,
• Federal Bureau of Investigation Uniform Crime Reporting,
• Department of Homeland Security Fusion Center,
• Wheat Ridge Police Department,
• Surrounding law enforcement agencies and
• Incident Reports from multiple City departments.
2. Applicability and Scope
This report is applicable to all buildings and facilities in Wheat Ridge, Colorado occupied and/or
managed by City employees for department activities. Management officials, security
organizations, and working groups should reference the most current edition of the DBT, unless a
current agency‐specific threat assessment publication addressing the Undesirable Events is
available.
The DBT is an estimate of the threat City operations face across a range of Undesirable Events and
is based on the best intelligence information, assessments, incident reports and crime statistics
available at the time of publication. Users of the DBT must consider that undiscovered plots may
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exist, adversaries are always searching for new methods and tactics to overcome security
measures, and the lone adversary remains largely unpredictable.
3. Definitions (Listed by relationship to each other)
For the purposes of this report, the following definitions apply. For ease of comparison, the
definitions are grouped according to relationship to each other.
Design‐Basis Threat (DBT): A profile of the type, composition, capabilities, methods (tactics,
techniques, and procedures), and the goals, intent, and motivation of an adversary upon which the
security engineering and operations of a facility are based.
Baseline Threat: The estimate of the relative threat posed to a City facility from an Undesirable
Event. Baseline threat is categorized as Low, Medium or High.
Undesirable Event: An incident directed towards a City facility that adversely impacts the
operation of the facility, the mission of the agency, or personnel.
Facilitating Event: An activity or action associated with the pre‐planning or preparation for an
event, which potentially increases the likelihood of success of an Undesirable Event by making it
less difficult to achieve and/or assisting its progress.
Level of Protection (LOP): The degree of security provided by a particular countermeasure or set of
countermeasures. Levels of Protection used in this Standard are Low, Medium and High.
Level of Risk: The combined measure of the threat, vulnerability, and consequences posed to a
facility from a specified Undesirable Event.
Risk: A measure of potential harm from an Undesirable Event that encompasses threat,
vulnerability, and consequence.
Threat: The intention and capability of an adversary to initiate an Undesirable Event.
Vulnerability: A weakness in the design or operation of a facility that can be exploited by an
adversary.
Consequence: The level, duration, and nature of the loss resulting from an Undesirable Event.
4. How to Apply This Report
The DBT establishes the characteristics of the threat environment to be used in conjunction with
all baseline physical security standards.
The intent of the DBT is three‐fold:
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• To inform the deliberations of working groups as they establish standards.
• To support the calculation of the threat, vulnerability, and consequence to a facility when
calculating risk to a City facility and determining an appropriate Level of Protection,
particularly when applying Physical Security Criteria.
• To determine specific adversary characteristics that performance standards and
countermeasures are designed to mitigate.
5. Standard Development
As the City leaders develop standards to address threats against City facilities, they must have a
clear understanding of the threat they are trying to counter. Security professionals should use the
DBT as the basis for quantifying and characterizing threats in general.
For example, requirements for response force training, equipment, and weapons should be based
on the DBT’s postulated adversary capabilities for such events as robbery, assault, workplace
violence, ballistic attacks, etc. In the case of graduated standards increasing levels of protection
should be based on descriptions of factors that heighten the threat or increase the intensity of the
event for higher‐risk facilities.
6. Risk Assessments
The DBT provides specific details as to the characteristics of each event that might take place at a
City facility. They are based on a worst‐reasonable‐case scenario. Each event provides sufficient
information from which the threat, consequences, and vulnerability can be estimated in the
conduct of a risk assessment.
7. Undesirable Events
This section lists the Undesirable Events that could have an adverse impact on the operation of a
facility or mission of a City agency.
Undesirable Event
Assault ‐ Physically assaulting (with or without a weapon) a person or person inside the facility
or on the property. Includes the crimes of homicide, aggravated assault and rape.
Kidnapping ‐ Abduction of an occupant or visitor from a facility, including from inside secured
areas (e.g., a child care center) or outside on the site (e.g., a City‐controlled parking lot).
Robbery ‐ Unlawful taking of City‐owned or personal property from an employee or other
person(s) by force or threat of force. The incident could occur inside or outside of a facility.
Theft ‐ Unauthorized removal of City‐owned or personal property from a facility.
Vandalism ‐To willfully or maliciously destroy, injure, disfigure, or deface any public or private
property, real or personal, without the consent of the owner or person having custody or control
by cutting, tearing, breaking, marking, painting, drawing, covering with
filth, or any other such means as may be specified by local law.
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Undesirable Event
Civil Disturbance ‐ Deliberate and planned acts of violence, destruction or denial of access
stemming from organized demonstrations on or near City property.
Workplace Violence ‐ Violence perpetrated by an authorized occupant or an employee. The
assailant can be another employee, authorized tenant, or an authorized visitor.
Insider Threat ‐ Individuals with the access to and/or inside knowledge of an organization that
would allow them to exploit the vulnerabilities of the entity's security, systems, services,
products, information, or facilities with the intent to cause harm.
Explosive Device ‐ Mailed or Delivered ‐ An explosive device sent to the facility through U.S.
Mail or a commercial delivery service, including an unwitting courier.
Explosive Device ‐ Man‐Portable ‐ An explosive device concealed in a backpack, briefcase or
other innocuous container which is capable of being carried by a single operative, and placed
outside of a secure area, near an entrance to the facility or carried into a facility by an adversary
or an unsuspecting occupant, visitor or courier and left to detonate after the adversary departs.
Explosive Device – Vehicle Borne Improvised Explosive Device (VBIED) – An attack that utilizes
a vehicle to deliver an improvised explosive device against a facility. A passenger sedan
containing an IED with a 50‐200 pound (TNT equivalent) explosive main charge, utilizing a
remote control, timed, or victim operated trigger.
Arson ‐ Deliberately or attempting to set fire in or around a facility or associated grounds and
assets.
Active Shooter ‐ An active shooter is an individual actively engaged in killing or attempting to kill
people in a confined and populated area, typically through the use of firearms.
Ballistic Attack ‐ Small Arms ‐ One or more individuals armed with small arms fire Small Arms
indiscriminately at a facility from outside.
Unauthorized Entry ‐ Unauthorized access to a facility or controlled area by forced entry or
surreptitiously by stealth. Includes the use of deceit, coercion, or social engineering to gain
access to a facility through a controlled entrance.
Disruption of Facility or Security Systems ‐ Physically accessing facility or security systems for
the purpose of disruption or manipulation of the systems.
CBR Release ‐ Internal ‐ Intentional release of a CBR agent carried into the facility, including in
general interior spaces (lobbies) or into specific rooms or systems (HVAC rooms).
CBR Release ‐ Mailed or Delivered ‐ A CBR substance or dispersal device sent to the facility
through U.S. Mail or a commercial delivery service, including an unwitting courier.
Release of Onsite Hazardous Materials ‐ Unauthorized access to hazardous materials stored
onsite with the intent of harming personnel or damaging the facility.
Vehicle Ramming ‐ Driving a vehicle in an attempt to penetrate a facility (e.g., lobby or loading
dock) or breach a defined perimeter.
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Appendix B – References and Acknowledgements
8.1.1 10‐28‐14 Memo to Chief Daniel Brennan (Parks and Recreation)
8.4 10‐14‐14 Recreation Center Code of Conduct (Parks and Recreation)
8.4 10‐28‐14 Ballroom Rental Guidelines (Parks and Recreation)
8.4.2 12‐2‐14 Policy 6002‐15 Disciplinary Issues with Recreation Center Patrons (Parks and
Recreation)
Anti‐harassment and workplace violence policy (City)
Background check (City)
Citizen Injury Incident Report (City)
Emergency Action and Safety Plan (City)
Communication Plan (Police Department)
EAP manual cuts (Park and Recreation)
Emergency Response Poster (Park and Recreation)
General Security Plan (Parks and Recreation)
IT Consolidated Policy Rev 2016 (IT)
Parks Rules and Regulations 12‐2015 (Park and Recreation)
Risk Management Plan (Park and Recreation)
Risk Management Policy (Park and Recreation)
Soccer Meeting (when to call police) (Park and Recreation)
City of Wheat Ridge Municipal Building Infrastructure Survey Security & Resilience Report (PCII)
dated June 28, 2016.
Aerial images Google Earth
The Lighting Handbook, 10th Edition, Illuminating Engineering Society (IES)
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Appendix C – Acronyms
ACS Access Control System
DBT Design Basis Threat
DHS Department of Homeland Security
EMT Executive Management Team
FSL Facility Security Level
HVAC Heating, Ventilation and Air Conditioning
IED Improvised Explosive Device
ISC Interagency Security Committee
LOP Level of Protection
VBIED Vehicle‐Borne Improvised Explosive Device
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Appendix D – Definitions
Assets: People, information, and property for which the public transportation system is
responsible as legal owner, employer, or service provider.
Baseline Threat: The estimate of the relative threat posed to a City facility from an Undesirable
Event. Baseline threat is categorized as Low, Medium or High.
Consequences: The severity of impact and probability of loss for a given threat scenario.
Consequences may be measured in qualitative or quantitative terms.
Countermeasures: Those activities taken to reduce the likelihood that a specific threat will result
in harm. Countermeasures typically include the deployment and training of personnel, the
implementation of procedures, the design or retrofit of facilities and vehicles; the use of
specialized equipment, the installation of alarms/warning devices and supporting monitoring
systems; and communications systems and protocols.
Crime Prevention: The systematic study of the interrelationships among those who commit crime,
the location where crime occurs, and the victims of crime to identify patterns, and develop
operational and design/engineering strategies to reduce the likelihood of crime and public fear.
Design‐Basis Threat: A profile of the type, composition, capabilities, methods (tactics, techniques,
and procedures), and the goals, intent, and motivation of an adversary upon which the security
engineering and operations of a facility area based.
Facilitating Event: An activity or action associated with the pre‐planning or preparation for an
event, which potentially increases the likelihood of success of an Undesirable Event by making it
less difficult to achieve and/or assisting its progress.
Level of Protection: The degree of security provided by a particular countermeasure or set of
countermeasures. Levels of Protection used in this Standard are Low, Medium and High.
Level of Risk: The combined measure of the threat, vulnerability, and consequences posed to a
facility from a specified Undesirable Event.
Risk: A measure of potential harm from an Undesirable Event that encompasses threat,
vulnerability, and consequence.
Security Breach: An unforeseen event or occurrence that endangers life or property and may
result in the loss of services or system equipment.
Security Incident: An unforeseen event or occurrence that does not necessarily result in death,
injury, or significant property damage but may result in minor loss of revenue.
Official Use Only
Contents of this report may not be distributed without permission of the Wheat Ridge City Manager.
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Scenario analysis: An interpretive methodology that encourages role‐playing by transportation
personnel, emergency responders, and contractors to brainstorm ways to attack the system. This
analysis uses the results of threat analysis, paired with the system’s list of critical assets.
Transportation personnel use this analysis to identify the capabilities required to support specific
types of attacks. This activity promotes awareness and highlights those activities that can be
performed to recognize, prevent, and mitigate the consequences of attacks.
System Security: The application of operating, technical, and management techniques and
principles to the security aspects of a system throughout its life to reduce threats and
vulnerabilities to the most practical level through the most effective use of available resources.
System Security Management: An element of management that defines the system security
requirements and ensures the planning, implementation, and accomplishments of system security
tasks and activities.
System Security Program: The combined tasks and activities of system security management and
system security analysis that enhance operational effectiveness by satisfying the security
requirements in a timely and cost‐effective manner through all phases of a system life cycle.
Threat: A threat is any action with the potential to cause harm in the form of death, injury,
destruction, disclosure, interruption of operations, or denial of service. Threats include a number
of hostile actions that can be perpetrated by criminals, disgruntled employees, terrorists, and
others.
Threat Resolution: The analysis and subsequent action taken to reduce the risks associated with
an identified threat to the lowest practical level.
Undesirable Event: An incident directed towards a City facility that adversely impacts the
operation of the facility, the mission of the agency, or personnel.
Vulnerability: A weakness in the design or operation of a facility that can be exploited by an
adversary.
Vulnerability Analysis: The systematic identification of physical, operational and structural
components within transportation facilities and vehicles that can be taken advantage of to carry
out a threat. This includes vulnerabilities in the design and construction of a given transit facility or
vehicle, in its technological systems, and in the way it is operated (e.g., security procedures and
practices or administrative and management controls). Vulnerability analysis identifies specific
weaknesses with respect to how they may invite and permit a threat to be accomplished.
Official Use Only
Contents of this report may not be distributed without permission of the Wheat Ridge City Manager.
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Official Use Only
Memorandum
TO: Mayor and City Council THROUGH: Patrick Goff, City Manager
FROM: Steve Art – Urban Renewal Executive Director DATE: September 18, 2017 SUBJECT: Sheard Family Trust Redevelopment and Cooperation Agreement
ITEM: The Sheard Family Trust entered into a Tax Increment Financing (TIF) agreement with Renewal
Wheat Ridge (RWR) for development of a new retail/office building and additional light industrial/makerspace at the southeast corner of 44th Avenue and Jellison Street. At a future meeting, Council will be asked to ratify the Redevelopment Agreement and adopt a resolution approving a Cooperation Agreement between the City and RWR.
PRIOR ACTION: This is the first briefing to City Council on this project. RWR adopted resolutions approving the Agreement and a Cooperation Agreement at its September 5, 2017 meeting.
FINANCIAL IMPACT:
If approved, the City will forego 1½ cents of its local three-cent sales tax to the project until the termination of the TIF term, which is when the reimbursement amount of $767,383 is paid in full.
BACKGROUND:
The property is located at the southeast corner of 44th Avenue and Jellison Street on a site that previously contained an abandoned residential unit. The property was purchased by the owners of Swiss Flower in 2016 with the concept of developing a new retail site for Swiss Flower & Gift Cottage. The owners have been working on site plans and building elevations for the past year.
The property consists of two parcels which were recently re-platted to create the development
site. The proposed development, when done, will create 19,800 square feet of new retail and light industrial space. Construction is planned in three phases. Phase I includes a two-story
retail/office building measuring 6,600 square feet that will house Swiss Flower and office space
relating to the business. The project is currently under construction and the building’s footings have been poured. The building should be completed sometime in early 2018. The estimated value of this structure is $1.69 million which equates to $225 per square foot of valuation. When complete, the retail business is anticipated to generate about $1.32 million per year, or $200 per
square foot.
Study Session Memo – Sheard Family TIF
September 18, 2017
Page 2 The Phase II activity will include construction of 6,000 square feet of light industrial/makerspace
behind the new retail structure and is expected to be completed by 2022. It may and have a
market value of $884,000. The new spaces will be leased to smaller businesses that may support the retail activities of Swiss Flower and Gift Cottage. Phase III will create an additional 7,200 square feet of makerspace with anticipated completion
in 2025, and a value of $1.03 million. As in Phase II, these spaces may be leased to artisans who
will create products for retail sale. When complete, the entire development will contain 19,800 square feet of new retail and maker-space that will be constructed between 2018 and 2025. The existing Swiss Flower building will remain in place and be used for sales of larger retail items.
FINANCIAL IMPLICATIONS:
The proposed public investment for the Sheard activity is a bit lower than the other public investment projects in Wheat Ridge and a lower return is expected. This lower return $3.09 per every $1.00 of investment) is due to the unique nature of this project compared to the larger developments listed below.
Project Terms Public Investment Estimated TIF Revenues ROI/$1 Dollar Hacienda Colorado 100% Property
Tax/50%
Sales Tax/8 years
$1.01M $4.3M $4.26
Kipling Ridge 100% Property and Sales Tax/10 Years
$3.455M $13.8M $3.99
Corners at Wheat Ridge 100% Property Tax/33%
Sales Tax/1% PIF/12-15 Years
$6.25M $25.0M $4.00
Sheard Project 100% Property Tax/50% Sales Tax
$767,383 $2.37M $3.09
ELIGIBLE IMPROVEMENTS/ACTIVITY EVALUATION: In order for RWR to consider the use of TIF, the project is required to demonstrate a need for
public assistance. Swiss Flower utilized a consulting firm, Economic and Planning Systems
(EPS), to perform an analysis of the public improvements and the need for the use of TIF for this activity. RWR staff and City personnel also utilized EPS for reporting on the need for public assistance. EPS developed the eligible costs, ran a financial analysis for the need of public assistance and estimated the activities potential revenue generation.
Study Session Memo – Sheard Family TIF
September 18, 2017
Page 3
Attached to this report are the eligible costs for the entire development. Most of the public
improvements will occur in Phase I of the activity and therefore, most of the TIF increment will be generated in this phase. The identified public improvements include the cost of the land, site work, public utility
improvements, utility tap fees, landscaping and other public improvements. All costs have been
reviewed and approved as eligible TIF costs. These improvements total just under $1.6 million and are divided as $1.2M for Phase I, $206K for Phase II and just under $207K for Phase III. EPS then evaluated these eligible costs against the activities return on investment (ROI). For a
project of this type, and other TIF agreements approved by RWR, a typical developer’s ROI is
somewhere between 6-8%. This is calculated by dividing the annual net-operating-income by the total cost of the activity. If the activity received no public assistance through the TIF, it would generate a return of 5.6%. In order for this project to land at a 7% return, the activity requires a subsidy of $767,383.
PROPOSED AGREEMENT: The proposed TIF agreement between Sheard and RWR will provide a final payout of $767,383 if the entire development occurs. Because the activity is being developed in three separate phases, each phase will receive eligible reimbursement based upon that portion of the activity
receiving its certificate of occupancy (C/O) from the City. Based on calculations from EPS and
vetted through staff, upon completion of Phase I, the Sheards will be eligible to receive $695,312. Phase II will be eligible for $27,464 while Phase III will be eligible for $44,607 for a total of $767,383. COOPERATION AGREEMENT:
In addition to the Redevelopment Agreement between RWR and Sheard, a Cooperation Agreement also is required between RWR and the City of Wheat Ridge. The Cooperation Agreement details the intent of the proceeds and obligations of both parties as it relates to the collection of funds from the sales tax TIF referenced in the documents. In essence, the
Cooperation Agreement provides the mechanism that allows the obligated activities incremental
sales tax to flow to the City and then be distributed into a special account of RWR to fund the activity. The Cooperation Agreement requires the City to continue to share 1½ cents of its 3 cents sales tax with RWR until the reimbursement amount, $767,383, is paid to the developer. REPORT PREPARED BY:
Steve Art – Urban Renewal Executive Director ATTACHMENTS: 1. Resolution 14 and Redevelopment Agreement
2. Resolution 15 and Cooperation Agreement
3. EPS proforma evaluation 4. EPS PowerPoint presentation
TITLE:
WHEAT RIDGE URBAN RENEW AL AUTHORITY
RESOLUTION 14-2017
A RESOLUTION APPROVING THE REDEVELOPMENT AGREEMENT
BETWEEN THE WHEAT RIDGE URBAN RENEWAL AUTHORITY
D/B/A RENEWAL WHEAT RIDGE AND THE SHEARD FAMILY TRUST
IN AN AMOUNT NOT TO EXCEED $767,383
THEREFORE, BE IT RESOLVED by the Wheat Ridge Urban Renewal Authority as
follows:
Section 1. The Redevelopment Agreement between the Wheat Ridge Urban Renewal
Authority d/b/a Renewal Wheat Ridge (the "Authority") and The Sheard Family Trust, attached
hereto as Exhibit A, is hereby approved, and the is hereby authorized to execute the
Redevelopment Agreement on behalf of the Authority.
ADOPTED the 5th day of September, 2017.
WHEAT RIDGE URBAN RENEWAL AUTHORITY ~\ ~ ~
Tim Rogers, Chairperson
APPROVED AS TO FORM:
~tt~;~ ...
REDEVELOPMENT AGREEMENT
THIS REDEVELOPMENT AGREEMENT (this "Agreement") dated as of September 5,
2017, is made by and between WHEAT RIDGE URBAN RENEWAL AUTHORITY d/b/a/
RENEW AL WHEAT RIDGE, an urban renewal authority and a body corporate and politic of the
State of Colorado (the "Authority"), and the Sheard Family Trust (the "Developer"). The
Authority and Developer are sometimes collectively called the "Parties," and individually, a
"Party."
RECITALS
All capitalized terms used, but not defined, in these Recitals, have the meanings ascribed
to them in this Agreement. The Recitals are incorporated to this Agreement as though fully set
forth in the body of this Agreement.
WHEREAS, the City of Wheat Ridge, Colorado (the "City") is a home rule municipality
and political subdivision of the State of Colorado organized and existing under a home rule charter
pursuant to Article XX of the Constitution of the State of Colorado;
WHEREAS, the City Council of the City (the "City Council") established the Authority
on October 18, 1981;
WHEREAS, the City Council has adopted the I-70/Kipling Corridor Urban Renewal Plan,
as amended (the 11Urban Renewal Plan" or the "Plan");
WHEREAS, the Developer seeks to construct three (3) office and retail buildings
consisting of approximately 19,800 square feet of combined office and retail space to be known as
the Swiss Flower and Gift Cottage (the "Project") upon the property more particularly described
in Exhibit A, attached hereto and incorporated herein by this reference (the "Redevelopment
Property");
WHEREAS, the Authority has determined that the redevelopment of the Project in order
to remediate blight is consistent with and in furtherance of the purposes of the Authority and the
Urban Renewal Plan;
WHEREAS, in order to facilitate the acquisition, construction and installation of the
Project, the Authority seeks to reimburse the Developer for the cost of certain eligible
Improvements up to a maximum aggregate amount of Seven Hundred Sixty Seven Thousand
Dollars ($767,000.00) in three (3) separate development phases (as further defined below, the
"Reimbursement Amount") as set forth in this Agreement through utilization of property tax
increment and sales tax increment;
WHEREAS, pursuant to the Act and the Urban Renewal Plan, the Authority may finance
undertakings pursuant to the Plan by any method authorized under the Act or any other applicable
law, including, without limitation, issuance of notes, bonds and other obligations in an amount
sufficient to finance all or part of the Plan; borrowing of funds and creation of indebtedness;
advancement of reimbursement agreements; agreements with public or private entities; loans,
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advances and grants from any other available sources; and the Plan authorizes the Authority to pay
the principal and interest on any such indebtedness from property and sales tax increments, or any
other funds, revenues, assets or properties legally available to the Authority;
WHEREAS, the Urban Renewal Plan, as amended, contemplates that a primary method of
financing projects within the urban renewal area will be through the use of property tax increment
revenues and sales tax increment revenues; and
WHEREAS, the Parties have agreed to enter into this Agreement for the redevelopment
of the Property in accordance with the Urban Renewal Plan and the Colorado Urban Renewal Law,
Part 1 of Article 25 of Title 31 of the Colorado Revised Statutes, as amended (the "Act").
NOW, THEREFORE, in consideration of the mutual covenants and promises of the
Parties contained in this Agreement, and other valuable consideration, the receipt and adequacy of
which are acknowledged, the Parties agree to the terms and conditions in this Agreement.
AGREEMENT
1. DEFINITIONS. In this Agreement, unless a different meaning clearly appears from the
context, capitalized terms mean:
"Act" means the Colorado Urban Renewal Law, Part 1 of Article 25 of Title 31 of the
Colorado Revised Statutes, as amended.
"Agreement" means this Redevelopment Agreement, as it may be amended or
supplemented in writing. References to Sections or Exhibits are to this Agreement unless otherwise
qualified. All exhibits attached to and referenced in this Agreement are hereby incorporated into
this Agreement.
"Authority" means Wheat Ridge Urban Renewal Authority d/b/a Renewal Wheat Ridge,
an urban renewal authority and a body corporate and politic of the State of Colorado which has
been duly created, organized, established and authorized by the City to transact business and
exercise its powers as an urban renewal authority, all under and pursuant to the Act, and its
successors and assigns.
"Certificate Relating to Reimbursement Amount" means the certification in
substantially the form of Exhibit C, attached hereto relating to the satisfaction of the conditions
precedent set forth in Section 3 .1 relating to the payment of the Reimbursement Amount.
"City" means the City of Wheat Ridge, Colorado, a home rule municipality and political
subdivision of the State of Colorado organized and existing under a home rule charter pursuant to
Article XX of the Constitution of the State of Colorado.
"City Requirements" means, collectively, the Wheat Ridge Zoning and Development
Code, Architectural and Site Design Manual, Subdivision Improvement Agreement, Streetscape
Design Manual, International (Building) Codes and Site Drainage Requirements, except as may
be amended by mutual written agreement of the City and Developer through land use or building
permit approvals or otherwise.
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"Default" or "Event of Default" means any of the events described in Section 16;
provided, however, that such events will not give rise to any remedy until effect has been given to
all grace periods, cure periods and periods of enforced delay provided for in this Agreement.
"Developer" means the Sheard Family Trust, and any successors and assigns approved in
accordance with this Agreement.
"Developer Advances" means, collectively, amounts advanced or incurred by Developer
to pay any Eligible Costs.
"Effective Date" means the date of this Agreement.
"Eligible Costs" means, collectively, the reasonable and customary expenditures for the
acquisition, design, construction and installation of the Eligible hnprovements, including, without
limitation, reasonable and customary soft costs and expenses, as set forth in Exhibit B attached
hereto, as it may be amended hereunder. Eligible Costs also includes all reasonable and customary
costs and expenses related to the engineering and design work for the Eligible hnprovements. The
maximum amount of Eligible Costs to be paid or reimbursed pursuant to this Agreement shall be
the Reimbursement Amount as defined in this Agreement.
"Eligible Improvements" means the improvements set forth on Exhibit B attached hereto,
as amended in accordance with this Agreement.
"Executive Director" means the Executive Director of the Authority.
"Exhibits" The following Exhibits attached to this Agreement are hereby incorporated into
and made a part of this Agreement:
Exhibit A: Legal Description of the Property
ExhibitB: Eligible Improvements
Exhibit C: Certificate Relating to Reimbursement Amount
"Party" or "Parties" means one or both of the parties to this Agreement.
"Pledged Property Tax Increment Revenue" means one hundred percent (100%) of the
annual ad valorem property tax revenue received by the Authority from the Jefferson County
Treasurer in excess of the amount produced by the levy of those taxing bodies that levy property
taxes against the Property Tax Base Amount in the TIF Area in accordance with the Act and the
regulations of the Property Tax Administrator of the State of Colorado, but not including any
offsets collected by the Jefferson County Treasurer for return of overpayments or any reserve funds
retained by the Authority for such purposes in accordance with C.R.S. §§ 31-25-107(9)(a)(III) and
(b).
"Pledged Sales Tax Increment Revenues" means, for each year that this Agreement
remains in effect, fifty percent ( 50%) of that portion of the Sales Tax revenue received by the City,
and remitted to the Authority in accordance with the Act and the Plan, equal to the product of the
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Sales Tax rate of three percent (3.00%) times the amount of the taxable transactions subject to the
Sales Tax in the TIF Area, less the Sales Tax Base Amount.
"Pledged Revenues" means the total aggregate principal amount of the Reimbursement
Amount as defined in this Agreement.
"Pledged Tax Increment Revenues" means, collectively, the Pledged Property Tax
Increment Revenues and the Pledged Sales Tax Increment Revenues.
"Project" means the redevelopment of the Property.
"Project Account" means the account of the Special Fund created in Section 5.2 into
which the Authority shall deposit the Pledged Tax Increment Revenues.
"Property" means the real property described in Exhibit A attached hereto.
"Property Tax Base Amount" means the amount certified by the Jefferson County
Assessor as the valuation for assessment of all taxable property within the TIF Area in accordance
with Section 31-25-107(9)(a)(I) of the Act. The Property Tax Base Amount and increment value
shall be calculated and adjusted from time to time by the Jefferson County Assessor in accordance
with C.R.S. § 31-25-107(9) and the rules and regulations of the Property Tax Administrator of the
State of Colorado.
"Reimbursement Amount" means a maximum amount equal to Seven Hundred and Sixty
Seven Thousand Dollars ($767,000.00), which is the maximum amount that will be paid to the
Developer to reimburse the Developer for Eligible Costs in accordance with the terms and
provisions hereo£ No interest shall accrue on the Reimbursement Amount.
"Sales Tax" means the municipal sales tax of the City on sales of goods and services that
are subject to municipal sales taxes pursuant to the Wheat Ridge City Code. In the event that the
Sales Tax is subsequently increased above 3.00%, the amount of Sales Tax subject to this
Agreement shall not be increased above 3.00% unless otherwise authorized by the City Council.
"Sales Tax Base Amount" means the total collection of Sales Taxes levied at the rate of
three percent (3.00%) within the TIF Area for the applicable twelve-month period in accordance
with Section 31-25-107(9)(a)(I) of the Act.
"Sales Tax Increment Termination Date" shall be the date the Reimbursement Amount
is paid in full from the Pledged Revenues.
"Special Fund" means the special fund of the Authority defined in C.R.S. § 31-25-
107(9)(a)(II).
"TIF Area" means that part of the urban renewal area described in the Urban Renewal
Plan within which the tax increment provisions of C.R.S. § 31-25-107(9) apply. The TIF Area is
the same as the Property.
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"Urban Renewal Plan" or "Plan" means the I-70/Kipling Corridor Urban Renewal Plan,
approved by the City Council, as amended, and as may hereinafter be amended from time to time.
2. FINANCING AND CONSTRUCTION OF PROJECT.
2.1 Construction of Project. As set forth in Section 4, if Developer proceeds with the
Project, then Developer shall be responsible for acquiring, constructing and installing the Project,
including, without limitation, all Eligible Improvements, and shall be responsible for compliance
in all respects with the City Requirements.
2.2 Financing the Eligible Improvements. Developer shall be responsible for initially
financing the costs and expenses in connection with the acquisition, construction and installation
of the Eligible Improvements, including, without limitation, all design costs, engineering costs and
other soft costs incurred in connection therewith.
3. CONDITIONS PRECEDENT TO PAYMENT OF REIMBURSEMENT AMOUNT.
3.1 Conditions Precedent. Unless waived in writing by the Executive Director, the
following conditions precedent shall be satisfied prior to Developer receiving reimbursement for
Eligible Costs pursuant to the terms and provisions of this Agreement:
(a) Substantially all of the Eligible Improvements that are public improvements
that Developer is required to install pursuant to the Subdivision Improvement Agreement shall be
completed; and
(b) No Events of Default by Developer shall have occurred and be continuing
under this Agreement.
4. DEVELOPER.
4.1 Acquisition, Construction and Installation of Project. This Agreement shall not
obligate the Developer to proceed with the Project. If Developer proceeds with the Project,
Developer shall be responsible for the financing, design, acquisition, construction and installation
of the Project, subject to the provisions in this Agreement regarding reimbursement of Eligible
Costs in accordance herewith. The design and construction of the Project shall comply in all
material respects with all applicable codes and regulations of entities having jurisdiction, including
the City Requirements. Notwithstanding any provisions to the contrary contained herein, the
Developer shall be entitled to reimbursement for Eligible Costs incurred in connection with an
Eligible Improvement only if such Eligible Improvement complies with City Requirements.
If Developer proceeds with the Project, Developer will pay or cause to be paid all required
fees and costs, including those imposed by the City, in connection with the design, construction,
applicable warranty requirements, and use of the Project.
The Parties agree that ifthe Developer has not Commenced Construction of the Project by
June 1, 2018, that this shall not constitute an Event of Default hereunder, but that the Authority
shall have the right to terminate this Agreement as set forth in Section 18.
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4.2 Eligible Improvements. The list of Eligible Improvements set forth in Exhibit B,
attached hereto may be amended at the written request of Developer with the written consent of
the Executive Director, unless such consent is not required pursuant to the terms of Exhibit B.
4.3 Access to Property. Developer will permit representatives of the City and the
Authority access to the Property and the Project at reasonable times during regular business hours
and with prior notice as necessary for the purpose of carrying out or determining compliance with
this Agreement, the Urban Renewal Plan, the City Requirements or any City code or ordinance,
including, without limitation, inspection of any work being conducted.
4.4 Maintenance of Project. Developer shall be responsible for the maintenance of
those portions of the Project as set forth in the Subdivision Improvement Agreement.
4.5 Appeal of Property Taxes. Developer shall provide written notice to the Authority
of any requested reduction by Developer in any portion of the Property's real property tax assessed
valuation or abatement of any portion of the Property's real property taxes.
4.6 Notification of Sale of Property. Developer shall provide written notice to the
Authority of the sale of all or any portion of the Property by Developer during the term of this
Agreement.
5. THE AUTHORITY.
5.1 Payment of Reimbursement Amount. Upon compliance with the conditions
precedent set forth in Section 3.1 relating to the payment of the Reimbursement Amount, or the
Executive Director's waiver of any such conditions precedent, the Authority agrees that it shall
reimburse Developer for Eligible Costs incurred in connection with the acquisition, construction
and installation of Eligible Improvements in an amount equal to the Reimbursement Amount, but
solely from the Pledged Revenues received by the Authority as described in Section 6 below. The
Authority will have thirty (30) days after the Developer has submitted the Certificate Relating to
Reimbursement Amount of each phase as defined in Section 6 to confirm whether or not such
Certificate complies with the terms and provisions of this Agreement and whether the conditions
precedent set forth in Section 3 .1 have been satisfied or waived by the Executive Director. If the
Authority does not provide written approval or disapproval within such thirty (30) day period, the
Certificate shall be deemed approved by the Authority. If the Authority notifies Developer in
writing within such thirty (30) day period that the Authority disputes that the conditions precedent
set forth in Section 3 .1 have been satisfied or waived, or that there is not sufficient documentation
relating to all or any portion of the Eligible Costs that have been incurred by the Developer, and
sets forth a detailed explanation why the conditions precedent have not been satisfied, waived or
sufficiently documented, such portion of the Reimbursement Amount that is in dispute shall not
become due and payable until Developer and Authority have resolved the dispute. The Parties
agree to cooperate in good faith to resolve any dispute relating to the satisfaction of the conditions
precedent set forth in Section 3.1 within thirty (30) days after either Party's written request
therefor.
5.2 Special Fund; Project Account. The Authority agrees to establish the Special Fund
in accordance with the provisions of the Act and to establish the Project Account as a separate trust
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account within the Special Fund. The Authority agrees to deposit the Pledged Tax Increment
Revenues into the Project Account of the Special Fund upon receipt of the same. All Pledged Tax
Increment Revenues on deposit in the Project Account of the Special Fund are hereby pledged to
the payment of the Reimbursement Amount as set forth herein.
5.3 No Election Required. The Parties acknowledge that according to the decision of
the Colorado Court of Appeals in Olson v. City of Golden, 53 P.3d 747 (2002), an urban renewal
authority is not a local govenunent and therefore is not subject to the provisions of Article X,
Section 20 of the Colorado Constitution. Accordingly, the Authority may enter into this
Agreement with Developer, and agree to remit the Pledged Revenues to Developer to reimburse
Developer for Eligible Costs in accordance with the provisions of this Agreement without electoral
authorization, and such obligations are not subject to annual appropriation.
5.4 No Impairment. The Authority will not enter into any agreement or transaction that
impairs the rights of the Parties, including, without limitation, the right to receive and apply the
Pledged Revenue in accordance with the terms and provisions of this Agreement.
6. PAYMENT OR REIMBURSEMENT OF ELIGIBLE COSTS: PHASING. Upon
compliance with the conditions precedent set forth in Section 3.1, Developer shall be reimbursed
by the Authority for Eligible Costs, but solely from Pledged Revenues deposited into the Special
Fund and the Cash Payment as defined herein, in an amount not to exceed the Reimbursement
Amount as follows:
6.1 Phasing of Project. The Parties agree that the Project shall be developed in three
(3) separate and discrete phases, for a total Reimbursement Amount of Seven Hundred Sixty Seven
Thousand Three Hundred and Eighty Three Dollars ($767,383.00), each of the three (3) phases
shall be subject to separate reimbursement as provided herein, and shall require a separate
Certificate Relating to Reimbursement Amount as follows:
(a) Certificate Relating to Reimbursement Amount (Phase One): Developer
shall complete the Eligible Improvements for Phase One no later than December 31, 2018,
as evidenced by a Certificate of Occupancy for Phase One, and shall within thirty (30) days
thereafter submit its Certificate Relating to Reimbursement Amount (Phase One) in an
amount not to exceed Six Hundred Ninety-Five Thousand, Three Hundred Twelve Dollars
($695,312.00) as more particularly described in Exhibit B, attributable to Phase One;
(b) Certificate Relating to Reimbursement Amount (Phase Two): Provided that
the Certificate Relating to Reimbursement Amount (Phase One) has been provided to the
Authority, and that no more than one (1) year has elapsed since the Authority's receipt of
the Certificate Relating to Reimbursement Amount (Phase One), Developer shall complete
the Eligible Improvements for Phase Two no later than December 31, 2022, as evidenced
by a Certificate of Occupancy for Phase Two, and shall within thirty (30) days thereafter
submit its Certificate Relating to Reimbursement Amount (Phase Two) in an amount not
to exceed Twenty-Seven Thousand, Four Hundred and Sixty-Four Dollars ($27,464.00)
as more particularly described in Exhibit B, attributable to Phase Two; and
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(c) Certificate Relating to Reimbursement Amount (Phase Three): Provided
that the Certificate Relating to Reimbursement Amount (Phase Two) has been provided to
the Authority, and that no more than one (1) year has elapsed since the Authority's receipt
of the Certificate Relating to Reimbursement Amount (Phase Two), Developer shall
complete the Eligible Improvements for Phase Three no later than December 31, 2025, as
evidenced by a Certificate of Occupancy for Phase Three, and shall within thirty (30) days
thereafter submit its Certificate Relating to Reimbursement Amount (Phase Three) in an
amount not to exceed Forty-Four Thousand, Six Hundred and Seven Dollars ($44,607.00)
as more particularly described in Exhibit B, attributable to Phase Three.
6.2 Pledged Property Tax Increment Revenue. The Authority shall reimburse one
hundred percent (100%) of the Pledged Property Tax Increment Revenue to Developer received
by the Authority from the Jefferson County Treasurer as defined herein until the total amount of
Pledged Revenues paid to Developer equals the Reimbursement Amount, provided that each of
the three (3) phases has been completed. In the event twenty-five (25) year time frame for the
Authority's receipt of property tax increment pursuant to the Act expires prior to the
Reimbursement Amount being paid in full, this Agreement shall nonetheless terminate as a matter
of law, and no further payments shall be due the Developer. In the event that Developer does not
submit a Certificate Relating to Reimbursement Amount for any phase of the three phases as
defined herein, such Reimbursement Amount shall be reduced by the value of the Eligible Costs
attributable to each phase.
6.3 Pledged Sales Tax Increment Revenues. The Authority shall reimburse fifty percent
(50%) of the Pledged Sales Tax Increment Revenue to Developer as defined herein until the total
amount of Pledged Revenues paid to Developer equals the Reimbursement Amount, provided that
each of the three (3) phases has been completed. In the event twenty-five (25) year time frame for
the Authority's receipt of sales tax increment pursuant to the Act expires prior to the
Reimbursement Amount being paid in full, this Agreement shall nonetheless terminate as a matter
of law, and no further payments shall be due the Developer. In the event that Developer does not
submit a Certificate Relating to Reimbursement Amount for any phase of the three (3) phases as
defined herein, such Reimbursement Amount shall be reduced by the value of the Eligible Costs
attributable to each phase. Upon the Sales Tax Increment Termination Date, the City shall no
longer be obligated to pay the Sales Tax Increment into the Special Fund of the Authority.
7. INSURANCE. On or prior to the Commencement of Construction, Developer will provide
the City and the Authority with certificates of insurance showing that Developer is carrying, or
causing prime contractors to carry, the following insurance: General Liability, with a general
aggregate of Two Million Dollars ($2,000,000); fire damage of One Hundred Thousand Dollars
($100,000); medical expense of Five Thousand Dollars ($5,000); products/completed operations
aggregate of Two Million Dollars ($2,000,000); personal and advertising injury of One Million
Dollars ($1,000,000) with each occurrence up to One Million Dollars ($1,000,000),
with deductible of Twenty-Five Hundred Dollars ($2,500) per claim. Excess liability shall be
covered in an amount equal to Ten Million Dollars ($10,000,000) per occurrence/ Ten Million
Dollars ($10,000,000) aggregate.
8. INDEMNIFICATION. From Commencement of Construction of the Project through
Completion of Construction of the Project, and for any action arising during that time period,
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Developer agrees to indemnify, defend and hold harmless the City and the Authority, its officers,
agents and employees, from and against all liability, claims, demands, and expenses, including
fines imposed by any applicable state or federal regulatory agency, court costs and attorney fees,
on account of any injury, loss, or damage to the extent arising out of any of the work to be
performed by Developer, any subcontractor of Developer, or any officer, employee, agent,
successor or assign of Developer under this Agreement, but only to the extent such injury, loss, or
damage is caused by the negligent act or omission, error, professional error, mistake, accident, or
other fault of Developer, any subcontractor of Developer, or any officer, employee, agent,
successor or assign of Developer, but excluding any injuries, losses or damages which are due to
the gross negligence, breach of contract or willful misconduct of the City or the Authority, as the
case maybe.
9. REPRESENTATIONS AND WARRANTIES.
9.1 Representations and Warranties by the Authority. The Authority represents and
warrants as follows:
(a) The Authority is a body corporate and politic of the State of Colorado, duly
organized under the Act, and has the power to enter into and has taken all actions to date
required to authorize this Agreement and to carry out its obligations.
(b) The Authority knows of no litigation, proceeding, initiative, referendum,
investigation or threat of any of the same contesting the powers of the Authority or its
officials with respect to this Agreement that has not been disclosed in writing to Developer.
( c) The execution and delivery of this Agreement and the documents required
and the consummation of the transactions contemplated by this Agreement will not (i)
conflict with or contravene any law, order, rule or regulation applicable to the Authority or
to its governing documents, (ii) result in the breach of any of the terms or provisions or
constitute a default under any agreement or other instrument to which the Authority is a
party or by which it may be bound or affected, or (iii) permit any party to terminate any
such agreement or instruments or to accelerate the maturity of any indebtedness or other
obligation of the Authority.
( d) The Pledged Revenues are not subject to any other or prior pledge or
encumbrance, and the Authority will not pledge or encumber the Pledged Revenues prior
to full payment of the Reimbursement Amount without the prior written consent of
Developer.
(e) This Agreement constitutes a valid and binding obligation of the Authority,
enforceable according to its terms, except to the extent limited by bankruptcy, insolvency
and other laws of general application affecting creditors' rights and by equitable principles,
whether considered at law or in equity.
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9.2 Representations and Warranties by Developer. Developer represents and warrants
as follows:
(a) Developer is a duly established Trust in good standing and authorized to do
business in the State of Colorado and has the power and the authority to enter into and
perform in a timely manner its obligations under this Agreement.
(b) The execution and delivery of this Agreement has been duly and validly
authorized by all necessary action on its part to make this Agreement valid and binding
upon Developer.
(c) The execution and delivery of this Agreement will not (i) conflict with or
contravene any law, order, rule or regulation applicable to Developer or to Developer's
governing documents; (ii) result in the breach of any of the terms or provisions or constitute
a default under any agreement or other instrument to which Developer is a party or by
which it may be bound or affected; or (iii) permit any party to terminate any such agreement
or instruments or to accelerate the maturity of any indebtedness or other obligation of
Developer.
( d) Developer knows of no litigation, proceeding, initiative, referendum, or
investigation or threat or any of the same contesting the powers of Developer or any of its
principals or officials with respect to this Agreement that has not been disclosed in writing
to the Authority.
(e) Developer has prepared or caused to be prepared a financing and
development plan for the Project and Developer reasonably expects that the Pledged
Revenues to be generated from the Project will be sufficient to pay the Reimbursement
Amount.
(f) This Agreement constitutes a valid and binding obligation of Developer,
enforceable according to its terms, except to the extent limited by bankruptcy, insolvency
and other laws of general application affecting creditors' rights and by equitable principles,
whether considered at law or in equity.
10. TERM. Except as specifically limited by Section 6 and the provisions of the Act, the term
of this Agreement is the period commencing on the Effective Date and terffiinating on the date that
the Reimbursement Amount is paid in full by the Authority from the Pledged Revenues as defined
in this Agreement; provided, that the following provisions shall continue beyond the term of this
Agreement: (A) any rights and remedies that a Party has for an Event of Default hereunder; (B)
any rights that a Party has to inspect books and records as set forth herein for a period of four (4)
years following termination of this Agreement; and (C) the indemnification provisions set forth in
Section 9.
11. CONFLICTS OF INTEREST. None of the following will have any personal interest, direct
or indirect, in this Agreement: a member of the governing body of the Authority or the City, an
employee of the Authority or of the City who exercises responsibility concerning the Urban
Renewal Plan, or an individual or firm retained by the City or the Authority who has performed
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consulting services to the Authority or the City in connection with the Urban Renewal Plan or this
Agreement. None of the above persons or entities will participate in any decision relating to the
Agreement that affects his or her personal interests or the interests of any corporation, partnership
or association in which he or she is directly or indirectly interested.
12. ANTI-DISCRIMINATION. Developer, for itself and its successors and assigns, agrees
that in the construction of the Eligible Improvements and in the use and occupancy of the Property
and the Eligible Improvements, Developer will not discriminate against any employee or applicant
for employment because of race, color, creed, religion, sex, sexual orientation, disability, marital
status, ancestry, or national origin.
13. NOTICES. Any notice required or permitted by this Agreement will be in writing and will
be deemed to have been sufficiently given for all purposes if delivered in person, by prepaid
overnight express mail or overnight courier service, by certified mail or registered mail, postage
prepaid return receipt requested, addressed to the Party to whom such notice is to be given (and
such Party's additional persons to copy) at the address( es) set forth on the signature page below or
at such other or additional addresses as may be furnished in writing to the other Parties. The Parties
may also agree on a different means of providing written notice hereunder, including, without
limitation, notice via electronic mail.
Notice shall be deemed received: (i) if delivered in person, upon actual receipt (or refusal
to accept delivery); (ii) if by prepaid overnight express mail or overnight courier service, on the
first business day following sending of the notice; and (iii) if by certified mail or registered mail,
postage prepaid return receipt requested, on the earlier of the date of the receipt or the third
business day following sending of the notice.
14. DELAYS; FORCE MAJEURE. Subject to the following provisions, time is of the essence.
Any delays in or failure of performance by any Party of its obligations under this Agreement shall
be excused if such delays or failure are a result of acts of God, fires, floods, earthquake, strikes,
labor disputes, regulation or order of civil or military authorities, or other causes, similar or
dissimilar, which are beyond the control of such Party.
15. EVENTS OF DEF A ULT. The following events shall constitute an Event of Default under
this Agreement:
(a) Any representation or warranty made by any Party in this Agreement proves
to have been untrue or incomplete in any material respect when made and which untruth
or incompletion would have a material adverse effect upon the other Party.
(b) So long as the Reimbursement Amount has not been paid in full, the
Authority fails to remit the Pledged Revenues on deposit with the Authority to Developer
on or prior to February 15 of each year.
(c) Except as otherwise provided in this Agreement, if any Party fails in the
performance of any other covenant in this Agreement and such default continues for thirty
(30) days after written notice specifying such default and requiring the same to be remedied
is given by a non-defaulting Party to the defaulting Party. If such default is not of a type
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which can be cured within such thirty (30) day period and the defaulting Party gives written
notice to the non-defaulting Party or Parties within such thirty (30)-day period that it is
actively and diligently pursuing such cure, the defaulting Party shall have a reasonable
period of time given the nature of the default following the end of such thirty (30)-day
period to cure such default, provided that such defaulting Party is at all times within such
additional time period actively and diligently pursuing such cure in good faith.
16. REMEDIES. Upon the occurrence and continuation of an Event of Default, the non-
defaulting Party's remedies will be limited to the right to enforce the defaulting Party's obligations
by an action for injunction, specific performance, or other appropriate equitable remedy or for
mandamus, or by an action to collect and enforce payment of sums owing hereunder, and no other
remedy, and no Party will be entitled to or claim damages for an Event of Default by the defaulting
Party, including, without limitation, lost profits, economic damages, or actual, direct, incidental,
consequential, punitive or exemplary damages. In the event of any litigation or other proceeding
to enforce any of the terms, covenants or conditions of this Agreement, the prevailing party in such
litigation or other proceeding shall receive, as part of its judgment or award, its reasonable
attorneys' fees and costs.
17. TERMINATION. This Agreement may be terminated by the Developer at any time prior
to the Commencement of Construction of the Project. In the event that Developer has not
Commenced Construction of the Project on or prior to June 1, 2018, then the Authority shall each
have the option to terminate this Agreement.
In order to terminate this Agreement, a Party shall provide written notic~ of such
termination to the other Party. Such termination shall be effective thirty (30) days after the date
of such notice, without any further action by the Parties, unless prior to such time, the Parties are
able to negotiate in good faith to reach an agreement to avoid such termination. Upon such
termination, this Agreement shall be null and void and of no effect, and no action, claim or demand
may be based on any term or provision of this Agreement, except as otherwise expressly set forth
herein. In addition, the Parties agree to execute a mutual release or other instruments reasonably
required to effectuate and give notice of such termination.
18. PAYMENT OF FEES AND EXPENSES. Each Party agrees to pay for its own fees, costs
and expenses incurred by such Party in connection with the execution and delivery of this
Agreement and related agreements and documents.
19. NONLIABILITY OF OFFICIALS, AGENTS, MEMBERS, AND EMPLOYEES. Except
for willful or wanton actions, no trustee, board member, commissioner, official, employee,
consultant, manager, member, shareholder, attorney or agent of any Party, nor any lender to any
Party or to the Project, will be personally liable under the Agreement or in the event of any default
or for any amount that may become due to any Party.
20. ASSIGNMENT. Except as hereinafter provided, this Agreement shall not be assigned in
whole or in part by any Party without the prior written consent of the other Party.
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21. SECTION CAPTIONS. The captions of the Sections are set forth only for the convenience
and reference of the Parties and are not intended in any way to define, limit, or describe the scope
or intent of this Agreement.
22. ADDITIONAL DOCUMENTS OR ACTION.
22.1 The Parties agree to execute any additional documents or take any additional action,
including, without limitation, estoppel documents requested or required by third parties, including,
without limitation, lenders, tenants or potential purchasers, that is necessary to carry out this
Agreement or is reasonably requested by any Party to confirm or clarify the intent of the provisions
of this Agreement and to effectuate the agreements and the intent. Notwithstanding the foregoing,
however, no Party shall be obligated to execute any additional document or take any additional
action unless such document or action is reasonably acceptable to such Party.
22.2 If all or any portion of this Agreement, or other agreements approved in connection
with this Agreement are asserted or determined to be invalid, illegal or are otherwise precluded,
the Parties, within the scope of their powers and duties, will cooperate in the joint defense of such
documents and, if such defense is unsuccessful, the Parties will use reasonable, diligent good faith
efforts to amend, reform or replace such precluded items to assure, to the extent legally
permissible, that each Party substantially receives the benefits that it would have received under
this Agreement.
22.3 The Executive Director shall have the authority to act on behalf of the Authority
under this Agreement.
23. AMENDMENT. This Agreement may be amended only by an instrument in writing signed
and delivered by the Parties.
24. W AIYER OF BREACH. A waiver by any Party to this Agreement of the breach of any
term or provision of this Agreement must be in writing and will not operate or be construed as a
waiver of any subsequent breach by any Party.
25. GOVERNING LAW. The laws of the State of Colorado govern this Agreement.
26. BINDING EFFECT. This Agreement will inure to the benefit of and be binding upon the
Parties and their respective legal representatives, successors, heirs, and assigns, provided that
nothing in this paragraph permits the assignment of this Agreement except as set forth in
Section 21.
27. EXECUTION IN COUNTERPARTS. This Agreement may be executed in several
counterparts, each of which will be deemed an original and all of which will constitute but one and
the same instrument.
28. LIMITED THIRD-PARTY BENEFICIARIES. Except as hereinafter provided, this
Agreement is not intended and shall not be deemed to confer any rights on any person or entity
not named as a Party to this Agreement; provided, however, that the City shall be deemed to be a
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third-party beneficiary under this Agreement to the extent that Developer or Authority have agreed
to undertake certain actions for the benefit of the City.
29. NO PRESUMPTION. The Parties and their attorneys have had a full opportunity to review
and participate in the drafting of the final form of this Agreement. Accordingly, this Agreement
will be construed without regard to any presumption or other rule of construction against the Party
causing the Agreement to be drafted.
30. SEVERABILITY. If any provision of this Agreement as applied to any Party or to any
circumstance is adjudged by a court to be void or unenforceable, the same will in no way affect
any other provision of this Agreement, the application of any such provision in any other
circumstances or the validity, or enforceability of the Agreement as a whole.
31. DAYS. If the day for any performance or event provided for herein is a Saturday, a Sunday,
a day on which national banks are not open for the regular transactions of business, or a legal
holiday pursuant to Section 24-11-101(1), C.R.S., such day will be extended until the next day on
which such banks and state offices are open for the transaction of business.
32. GOOD FAITH OF PARTIES. In the performance of this Agreement or in considering any
requested approval, consent, acceptance, or extension of time, the Parties agree that each will act
in good faith and will not act unreasonably, arbitrarily, capriciously, or unreasonably withhold,
condition, or delay any approval, acceptance, or extension of time required or requested pursuant
to this Agreement.
33. PARTIES NOT PARTNERS. Notwithstanding any language in this Agreement or any
other agreement, representation, or warranty to the contrary, the Parties will not be deemed to be
partners or joint venturers, and no Party is responsible for any debt or liability of any other Party.
34. NO WAIVER OF IMMUNITY. Nothing contained in this Agreement constitutes a waiver
of sovereign immunity or governmental immunity by the Authority under applicable state law.
[The remainder of this page is intentionally left blank.]
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IN WITNESS WHEREOF, this Agreement is executed by the Parties as of ____ _ ,
2017.
WHEAT RIDGE URBAN RENEWAL AUTHORITY
ATTEST: Tim Rogers, Chairperson
Steve Art, Executive Director
Notice Address:
Wheat Ridge Urban Renewal Authority
7 500 West 29th A venue
Wheat Ridge, Colorado 80033
Attention: Steve Art, Executive Director
Email: sart@ci.wheatridge.co.us
THE SHEARD FAMILY TRUST, DATED 6-24-1993
RUSSELL S. SHEARD AND HEIDI J. HAAS
TRUSTEES
By:
Name:
Title:
Notice Address:
The Sheard Family Trust, Dated 6-24-1993
Russell S. Sheard and Heidi J. Haas Trustees
9840 West 44th Avenue
Wheat Ridge, Colorado 80033
15
Heidi J. Haas Sheard
Trustee
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EXHIBIT A
LEGAL DESCRIPTION OF THE PROPERTY
Parcel A:
Lots 1, 2 and Tract A
44t1i Marketplace, as per plat recorded July 25, 2017 at Reception No. 2017076234,
Cotmty of Jefferson, State of Colorado_
.Parcel B:
Lot3,
44th Marketplace, as per plat recorded July 25, 2017 at Reception No. 2017076234,
Comty ofJefferson, State of Colorado ..
Parcel C:
Lot4,
44t1i Marketplace, as per platr~ecorded July 25, 2017 at Reception No. 2017076234,
County of Jefferson, State of Colorado.
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Description
EUgible Project Costs
Land
Elig~ble Buifdi.ng Costs [1)
Site-Detention Pond
Xce1I and Sitework
Parking Lot
Landscaping
Exterior Curb and Gutter
City Fees [2]
Electrical Lateral
Gas Lateral:
Water Tap
Sewer Tap
Asphalt, Curb, and Gutter
Subtotal
EXHIBITB
ELIGIBLE IMPROVEMENTS
Phase I Phase II
$253,500 $126,750
$481,800 $0
$89,000 $0
$63,050 $0
$3,500 $0
$95,000 $0
$187136 $0 ' $37,000 $0
$0 $7,500
$0 $7,500
$0 $15,000
$0 $15,000
$0 $35,000
$1,209,986 $206,750
Phase 111
$126,750
$0
$0
$0
$0
$0
$0
$0
$7,500
$7500 ' $15,000
$1.5,000
$35.000
$206,750
Total
$507,000
$481,800
$89,000
$63,050
$3,500
$95,000
$187,136
$37,000
$15000 ' $15,000
$30,000
$30,000
$70,000
$£;553:,466
1, G,,"l-?, 'l~ft:>
[1] El~ible building cost% detemiined by taking a vanilfa shell cost of $120.00 per sq. ft against an
tmpr:oved custom c·ostof $193.00 per sq. tt and applying the difference of$73.00 per sq_ ft to the
building sq_ ft in each pttase.
tiJ paid to city 'for future improvements in front of existing business
Source: Swiss Flower Shop; Economic & Planning Systems
\i.E?S0002\P.rtiJl 173013-Wheai Ridge 44111 .Ave lilf\M'odels'~173013-TIF Model-Oi3-15-2D17.xlsm]Elig Cost.·2
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EXHIBITC
FORM OF CERTIFICATE RELATING TO REIMBURSEMENT AMOUNT
Wheat Ridge Urban Renewal Authority
7500 West 29th Avenue
Wheat Ridge, Colorado 80033
Attention: Executive Director
The undersigned representative of (the "Developer") hereby makes the
following certifications in accordance with the terms and provisions of section 3 .1 of the
Redevelopment Agreement dated as of _, 2017 (the "Redevelopment Agreement"),
between the Wheat Ridge Urban Renewal Authority and Developer. All capitalized terms used
herein and not otherwise defined shall have the meanings set forth in the Redevelopment
Agreement.
The following conditions have been satisfied or waived in writing by the Executive
Director:
1. Substantially all of the Eligible Improvements set forth in Section 3.l(a) of the
Redevelopment Agreement have been completed for this Phase.
2. No Events of Default by Developer have occurred and are continuing under the
Redevelopment Agreement.
The total amount of Eligible Costs for which reimbursement is requested is
______ for Phase __ . Attached to this Certificate is documentation related to the
Eligible Costs incurred by the Developer in connection with the financing, construction and
installation of the Eligible Improvements for which such reimbursement is requested.
The foregoing certification shall constitute the Certificate Relating to Reimbursement
Amount under the Redevelopment Agreement.
Date: _________ _
SHEARD FAMILY TRUST, DATED 6-24-1993,
RUSSELL S. SHEARD AND HEIDI J. HAAS SHEARD,
TRUSTEES
By: __________________ _
Name: Heidi J. Haas Sheard
Title: Trustee
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Within thirty (30) days of receipt of this Certificate by the Authority, the Authority shall
complete the applicable provision below and remit to Developer:
The Authority hereby verifies that: (a) this Certificate Relating to Reimbursement Amount
complies with the terms and conditions of the Redevelopment Agreement and that the
conditions precedent set forth in Section 3.1 of the Redevelopment Agreement have been
satisfied or waived in writing by the Executive Director, and (b) the documentation
submitted with this Certificate is sufficient to verify that the Reimbursement Amount
requested pursuant to this Certificate has been allocated to the reimbursement of Eligible
Costs incurred in connection with Eligible Improvements in accordance with the
Redevelopment Agreement.
The Authority hereby notifies Developer that (a) the Authority disputes that the conditions
precedent set forth in Section 3 .1 of the Redevelopment Agreement have been satisfied or
waived, and/or (b) that the documentation submitted with this Certificate is not sufficient
to verify that the total Reimbursement Amount requested pursuant to this Certificate is for
the reimbursement of Eligible Cost incurred in connection with Eligible Improvements.
Set forth below is a detailed explanation of the reasons why the Authority disputes that
these conditions precedent have been satisfied or waived or that such documentation is
insufficient:
WHEAT RIDGE URBAN RENEWAL AUTHORITY
Name:
Title:
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TITLE:
WHEAT RIDGE URBAN RENEWAL AUTHORITY RESOLUTION N0.15-2017
A RESOLUTION APPROVING THE COOPERATION AGREEMENT
BETWEEN THE CITY OF WHEAT RIDGE AND THE WHEAT RIDGE
URBAN RENEW AL AUTHORITY d/b/a RENEW AL WHEAT RIDGE
THEREFORE, BE IT RESOLVED by the Wheat Ridge Urban Renewal Authority as follows:
Section 1. The Cooperation Agreement between the City of Wheat Ridge and the Wheat Ridge Urban Renewal Authority d/b/a Renewal Wheat Ridge (the "Authority") to assist in the development of The Sheard Family Trust activity at 44th Avenue and Jellison Street,
attached hereto as Exhibit A, is hereby approved and the Chairperson or Executive Director is
authorized to execute the Cooperation Agreement on behalf of the Authority.
ADOPTED the 5th day September, 2017.
WHEAT RIDGE URBAN RENEWAL AUTHORITY
L.(L
Tim Rogers, Chairperson
Steve Art, Urban Renewal Executive Director
APPROVED AS TO FORM: c=::::2�;: t.--'1 If;!/-..
Corey Y. Hoffmann, WRURA Attorney
Attachment 2
COOPERATION AGREEMENT BETWEEN THE CITY OF WHEAT RIDGE AND
WHEAT RIDGE URBAN RENEWAL AUTHORITY
THIS COOPERATION AGREEMENT (this "Agreement") dated as of September 5, 2017, is made and entered into between the CITY OF WHEAT RIDGE, COLORADO (the "City") and the WHEAT RIDGE URBAN RENEWAL AUTHORITY d/b/a/ RENEWAL WHEAT RIDGE (the "Authority").
WHEREAS, the City is a Colorado home rule municipality with all the powers and authority granted pursuant to Article XX of the Colorado Constitution and its home rule charter
(the "Charter"); and
WHEREAS, the Authority is a Colorado Urban Renewal Authority, with all the powers and authority granted to it pursuant to Title 31, Article 25, Part 1, Colorado Revised Statutes ("C.R.S.") (the "Urban Renewal Law"); and
WHEREAS, pursuant to Article XIV of the Colorado Constitution, and Title 29, Article 1, Part 2, C.R.S., the City and the Authority are authorized to cooperate and contract with one another to provide any function, service or facility lawfully authorized to each governmental entity; and
WHEREAS, the City Council of the City (the "City Council") has previously adopted the 1-70/Kipling Corridors Urban Renewal Plan, as amended (the "Urban Renewal Plan" or the"Plan") for the area described therein (the "Urban Renewal Area"); and
WHEREAS, the Sheard Family Trust, an Colorado Revocable Living Trust (the "Developer") desires to construct three (3) office and retail buildings consisting of approximately 19,800 square feet of space on a parcel at the southeast comer of 44th Avenue and Jellison Street consisting of approximately 1.08 acres (the "Property"), which is in the Urban Renewal Area; and
WHEREAS, the Developer has submitted a proposal to the City and the Authority to redevelop the Property (the "Project"); and
WHEREAS, the Project is being undertaken to facilitate the elimination and prevention of blighted areas and to promote redevelopment, conservation and rehabilitation of the Urban
Renewal Area; and
WHEREAS, pursuant to section 31-25-112, C.R.S., the City is specifically authorized to do all things necessary to aid and cooperate with the Authority in connection with the planning or undertaking of any urban renewal plans, projects, programs, works, operations, or activities of the Authority, to enter into agreements with the Authority respecting such actions to be taken by the City, and appropriating funds and making such expenditures of its funds to aid and cooperate with the Authority in undertaking the Project and carrying out the Plan; and
WHEREAS, the Authority and the Developer expect to enter into a Redevelopment Agreement (the "Redevelopment Agreement") that sets forth the rights and responsibilities of each party with respect to the financing and construction of the Project; and
WHEREAS, in order to finance certain eligible improvements for the Project, the Redevelopment Agreement provides that, upon compliance with certain conditions precedent, the Authority will provide from reserves in the special account of the 170/Kipling Corridors Urban Renewal Plan and reimbursement ofup to $767,000 in three separate development phases as set forth in a Redevelopment Agreement executed on September 5, 2017 (the "Payment") with such Payment to be payable from the Pledged Property Tax Increment Revenue and Pledged Sales Tax Increment Revenues as the same are defined in the Redevelopment Agreement to be generated from the redevelopment of the Project; and
WHEREAS, in order to implement the provisions regarding the use of Pledged Sales Tax Increment Revenues generated from the Project, this Cooperation Agreement is necessary to cause the City to deposit such Pledged Sales Tax Increment Revenues into the Special Fund of the Authority to reimburse the Developer for Eligible Costs of the Project as defined in the Redevelopment Agreement; and
WHEREAS, capitalized terms used herein and not otherwise defined shall have the meanings set forth in the Redevelopment Agreement.
NOW, THEREFORE, in consideration of the mutual promises set forth below, the City and the Authority agree as follows:
I.COOPERATION.
(a)The City shall continue to make available such employees of the Cityas may be necessary and appropriate to assist the Authority in carrying out any authorized duty or activity of the Authority pursuant to the Urban Renewal Law, the Plan, or any other lawfully authorized duty or activity of the Authority.
(b)The City agrees to assist the Authority by pursuing all lawfulprocedures and remedies available to it to collect and transfer to the Authority on a timely
basis all Pledged Sales Tax Increment Revenues for deposit into the Project Account of the Special Fund until the total amount of Pledged Revenues as defined in the Redevelopment
Agreement paid to Developer equals the Reimbursement Amount, or the expiration of the twenty-five (25) year time frame for the Authority's receipt of sales tax increment pursuant to
the Act expires, whichever first occurs.
( c)To the extent lawfully possible, the City will take no action that
would have the effect of reducing tax collections that constitute Pledged Sales Tax Increment Tax Increment Revenues.
2
2. GENERAL PROVISIONS.
(a)Separate Entities. Nothing in this Agreement shall be interpreted in any
manner as constituting the City or its officials, representatives, consultants, or employees as the
agents of the Authority, nor as constituting the Authority or its officials, representatives,
consultants, or employees as agents of the City. Each entity shall remain a separate legal entity
pursuant to applicable law. Neither party shall be deemed hereby to have assumed the debts,
obligations, or liabilities of the other.
(b) Third Parties. Neither the City nor the Authority shall be obligated or
liable under the terms of this Agreement to any person or entity not a party hereto, provided,
however, that the Lender is a third party beneficiary to the provisions hereof related to the
collection and remittance to the Authority of the Pledged Revenues.
(c)Modifications. No modification or change of any provision in this
Agreement shall be made, or construed to have been made, unless such modification is mutually
agreed to in writing by both parties and incorporated as a written amendment to this Agreement.
Memoranda of understanding and correspondence shall not be construed as amendments to the
Agreement.
( d)Entire Agreement. This Agreement shall represent the entire agreement
between the parties with respect to the subject matter hereof and shall supersede all prior
negotiations, representations, or agreements, either written or oral, between the parties relating to
the subject matter of this Agreement and shall be independent of and have no effect upon any
other contracts.
(e)Severability. If any provision of this Agreement is held to be invalid,
illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall
not in any way be affected or impaired.
(f)Assignment. Except for the pledge under the Loan Documents, this
Agreement shall not be assigned, in whole or in part, by either party without the written consent
of the other.
(g)Waiver. No waiver of a breach of any provision of this Agreement by
either party shall constitute a waiver of any other breach or of such provision. Failure of either
party to enforce at any time, or from time to time, any provision of this Agreement shall not be
construed as a waiver thereof. The remedies reserved in this Agreement shall be cumulative and
additional to any other remedies in law or in equity.
3
IN WITNESS WHEREOF, this Agreement is executed by the Parties as of June 6,
2017.
(SEAL)
Attest:
Janelle Shaver, City Clerk
APPROVED AS TO FORM
Gerald Dahl, City Attorney
ATTEST:
Steve Art, Executive Director
20657920 v2
CITY OF WHEAT RIDGE, COLORADO
By: ______________ _ Joyce Jay, Mayor
WHEAT RIDGE URBAN RENEWAL AUTHORITY
Tim Rogers, Chairperson
4
Request for TIF Evaluation
Swiss Flower Shop
Prepared for:
The City of Wheat Ridge
Prepared by:
Economic & Planning Systems, Inc.
Date:
September 11, 2017
EPS #173013 Attachment 3
9840/9890 TIF Request
Economic & Planning Systems
9/11/2017Table 1
Eligible Project Costs
Description Phase I Phase II Phase III Total
Eligible Project Costs
Land $253,500 $126,750 $126,750 $507,000
Eligible Building Costs [1] $481,800 $0 $0 $481,800
Site-Detention Pond $89,000 $0 $0 $89,000
Xcel and Sitework $63,050 $0 $0 $63,050
Parking Lot $3,500 $0 $0 $3,500
Landscaping $95,000 $0 $0 $95,000
Exterior Curb and Gutter $187,136 $0 $0 $187,136
City Fees [2] $37,000 $0 $0 $37,000
Electrical Lateral $0 $7,500 $7,500 $15,000
Gas Lateral $0 $7,500 $7,500 $15,000
Water Tap $0 $15,000 $15,000 $30,000
Sewer Tap $0 $15,000 $15,000 $30,000
Asphalt, Curb, and Gutter $0 $35,000 $35,000 $70,000
Subtotal $1,209,986 $206,750 $206,750 $1,623,486
[2] paid to city for future improvements in front of existing business
Source: Swiss Flower Shop; Economic & Planning Systems
\\EPSDC02\Proj\173013-Wheat Ridge 44th Ave TIF\Models\[173013-TIF Model-08-15-2017.xlsm]Elig Cost-2
[1] Eligible building cost % determined by taking a vanilla shell cost of $120.00 per sq. ft. against an
improved custom cost of $193.00 per sq. ft. and applying the difference of $73.00 per sq. ft. to the
building sq. ft. in each phase.
2 of 10
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Economic & Planning Systems
9/11/2017Table 2
Total Project Cost
Description Phase I Phase II Phase III Total
Total Project Costs
Building $1,129,785 $605,000 $779,000 $2,513,785
Land $253,500 $126,750 $126,750 $507,000
Improvements $474,686 $80,000 $80,000 $634,686
City Permit Review $2,591 $0 $0 $2,591
Fire Dept Review $750 $0 $0 $750
Zoning Review $2,300 $0 $0 $2,300
Demo 9840 $9,150 $0 $0 $9,150
Demo 9890 $9,000 $0 $0 $9,000
Util Disconnect 9840 $3,500 $0 $0 $3,500
Util Disconnect 9890 $3,500 $0 $0 $3,500
Enviro Consulting $2,900 $0 $0 $2,900
Tree Removal 9840/90 $25,650 $0 $0 $25,650
EPS Consulting Fees $7,000 $0 $0 $7,000
Civil & ASMPE Engineering $121,000 $0 $0 $121,000
Subtotal $2,045,312 $811,750 $985,750 $3,842,812
Source: Swiss Flower Shop; Economic & Planning Systems
\\EPSDC02\Proj\173013-Wheat Ridge 44th Ave TIF\Models\[173013-TIF Model-08-15-2017.xlsm]Total Costs
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Economic & Planning Systems
9/11/2017Table 3
Development Pro Forma
Description Phase I Phase II Phase III Build-out
Square Feet 6,600 6,000 7,200 19,800
Operating Revenues $15.15 $10.00 $10.00
Rental Income $100,000 $60,000 $72,000 $232,000
CAM $18,000 $9,000 $10,800 $37,800
Total Income $118,000 $69,000 $82,800 $269,800
per sq. ft.$17.88 $11.50 $11.50 $13.63
Operating Expenses % of Rent
RE Taxes 10.0%$10,000 $6,000 $7,200 $23,200
Insurance 2.5%$2,500 $1,500 $1,800 $5,800
Utilities 2.5%$2,500 $1,500 $1,800 $5,800
Reserves 8.5%$8,500 $5,100 $6,120 $19,720
Total Expenses 23.5%$23,500 $14,100 $16,920 $54,520
Net Operating Income $94,500 $54,900 $65,880 $215,280
per sq. ft.$14.32 $9.15 $9.15 $10.87
Total Developer Cost $2,045,312 $811,750 $985,750 $3,842,812
per sq. ft.$309.90 $135.29 $136.91 $194.08
Developer Returns (w/out URA Investment)
NOI $94,500 $54,900 $65,880 $215,280
Total Construction Cost $2,045,312 $811,750 $985,750 $3,842,812
ROC 4.6% 6.8% 6.7%5.6%
Developer Returns (w/ URA Investment)
NOI $94,500 $54,900 $65,880 $215,280
Construction Cost $2,045,312 $811,750 $985,750 $3,842,812
URA Investment $695,312 $27,464 $44,607 $767,383
Net Cost $1,350,000 $784,286 $941,143 $3,075,429ROC7.0% 7.0% 7.0%7.0%
Source: Swiss Flower Shop; Economic & Planning Systems
\\EPSDC02\Proj\173013-Wheat Ridge 44th Ave TIF\Models\[173013-TIF Model-08-15-2017.xlsm]Op Rev-Exp
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Economic & Planning Systems
9/11/2017Table 4
Base Calculation
Description 9840 9890 Total
Total Acreage 1.12 1.00 2.12
Actual Value
Land Value [1]$161,500 $186,700 $348,200
Improved Value [1]$391,500 $100,800 $492,300
Total Value $553,000 $287,500 $840,500
per sq. ft.$11.3 $6.6
Assessed Value
Land Value [1]$37,430 $14,861 $52,291
Improved Value [1]$99,607 $8,024 $107,631Total Value $137,037 $22,885 $159,922
Estimated Base AV
% of Area Included in TIF Boundary 65.0% 100.0%
Estimated Area (sq. ft.)31,712 43,560
Value per Sq. Ft.$6.6 $6.6
Rate 29.00%7.96%
Total AV $60,696 $22,885 $83,581
Estimated Base Prop Tax 90.4600 $5,491 $2,070 $7,561
[1] 2015 payable 2016
Source: Economic & Planning Systems
\\EPSDC02\Proj\173013-Wheat Ridge 44th Ave TIF\Models\[173013-TIF Model-08-15-2017.xlsm]BASE
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Economic & Planning Systems
9/11/2017Table 5
Development Program and Market Values
Description Phase I Phase II Phase III Total
NW Corner W Side Interior
Comp: 2018 Comp: 2019 Comp: 2022
MARKET VALUE
Land Value
% of Total Area [1]20%20%60%100%
Total Area 15,312 15,054 44,905 75,272
Value per Sq. Ft.$4.00 $4.00 $4.00
Total Land Value $61,248 $60,217 $179,621 $301,087
Building Value
Building Area (Sq. Ft.)6,600 6,000 7,200 19,800
Value per Sq. Ft.$213 $110 $110
Improved Value $1,405,419 $659,091 $790,909 $2,855,419
Infrastructure Value $133,333 $133,333 $133,333 $400,000
Total Building Value $1,538,752 $792,424 $924,242 $3,255,419
Total Market Value $1,600,000 $852,642 $1,103,864 $3,556,505
per Bldg. Sq. Ft.$242.42 $142.11 $153.31
ANNUAL SALES (office users) (office users)
Sales per Sq. Ft.$200 $0 $0Total Annual Sales $1,320,000 $0 $0 $1,320,000
[1] Pro rata share based on building floor area.
Source: Economic & Planning Systems
\\EPSDC02\Proj\173013-Wheat Ridge 44th Ave TIF\Models\[173013-TIF Model-08-15-2017.xlsm]Market Values
6 of 10
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9/11/2017
Table 6Cumulative TIF Revenue
Description 5 Years 10 Years 15 Years 20 Years 25 Years
PHASE I
Property Tax
All Options $97,405 $272,717 $468,523 $684,754 $778,029
Sales Tax
Option A 25%$48,944 $102,982 $162,645 $228,517 $256,747
Option B 50%$97,888 $205,964 $325,289 $457,034 $513,494
Option C 75%$146,832 $308,946 $487,934 $685,550 $770,241
Option D 100%$195,776 $411,929 $650,578 $914,067 $1,026,988Combined
Option A 25%$146,349 $375,699 $631,168 $913,271 $1,034,776Option B 50%$195,293 $478,682 $793,812 $1,141,788 $1,291,523Option C 75%$244,237 $581,664 $956,457 $1,370,305 $1,548,270Option D 100%$293,181 $684,646 $1,119,102 $1,598,821 $1,805,017
PHASE IIProperty TaxAll Options $39,565 $111,900 $192,322 $263,843 $263,843Sales TaxOption A 25%$0 $0 $0 $0 $0
Option B 50%$0 $0 $0 $0 $0
Option C 75%$0 $0 $0 $0 $0
Option D 100%$0 $0 $0 $0 $0
Combined
Option A 25%$39,565 $111,900 $192,322 $263,843 $263,843
Option B 50%$39,565 $111,900 $192,322 $263,843 $263,843
Option C 75%$39,565 $111,900 $192,322 $263,843 $263,843
Option D 100%$39,565 $111,900 $192,322 $263,843 $263,843
PHASE III
Property Tax
All Options $57,602 $161,511 $278,305 $302,729 $302,729Sales Tax
Option A 25%$0 $0 $0 $0 $0Option B 50%$0 $0 $0 $0 $0Option C 75%$0 $0 $0 $0 $0Option D 100%$0 $0 $0 $0 $0CombinedOption A 25%$57,602 $161,511 $278,305 $302,729 $302,729Option B 50%$57,602 $161,511 $278,305 $302,729 $302,729Option C 75%$57,602 $161,511 $278,305 $302,729 $302,729Option D 100%$57,602 $161,511 $278,305 $302,729 $302,729
COMBINED (Total City Investment)
Property Tax
All Options $194,572 $546,127 $939,150 $1,251,326 $1,344,601
Sales Tax
Option A 25%$48,944 $102,982 $162,645 $228,517 $256,747
Option B 50%$97,888 $205,964 $325,289 $457,034 $513,494
Option C 75%$146,832 $308,946 $487,934 $685,550 $770,241
Option D 100%$195,776 $411,929 $650,578 $914,067 $1,026,988
Combined
Option A 25%$243,516 $649,109 $1,101,794 $1,479,842 $1,601,348
Option B 50%$292,460 $752,092 $1,264,439 $1,708,359 $1,858,095
Option C 75%$341,404 $855,074 $1,427,084 $1,936,876 $2,114,842
Option D 100%$390,348 $958,056 $1,589,728 $2,165,393 $2,371,589
Source: Economic & Planning Systems
\\EPSDC02\Proj\173013-Wheat Ridge 44th Ave TIF\Models\[173013-TIF Model-08-15-2017.xlsm]Cumulative
7 of 10
9840/9890 TIF Request Economic & Planning Systems 9/11/2017
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TIM MORZEL | SENIOR ASSOCIATE
ECONOMIC & PLANNING SYSTEMS September, 2017
REQUEST FOR TAX INCREMENT
FINANCING: SWISS FLOWER SHOPWHEAT RIDGE, COLORADO
Attachment 4
OVERVIEW
ECONOMIC & PLANNING SYSTEMS 2 SWISS FLOWER SHOP TIF REVIEW | 9/18/2017
SWISS FLOWER SHOP TIF REQUEST
PURPOSE
To provide the Wheat Ridge City Council with the
information necessary to evaluate the request for tax
increment financing (TIF) proposed by the Swiss Flower
Shop.
PRESENTATION OVERVIEW
•About Economic & Planning Systems
•Project Overview
•I-70/Kipling Urban Renewal Plan Overview
•Project Evaluation Criteria and Summary
•Estimated Project Investment
•Estimated City and URA Revenues
FIRM OVERVIEW
ECONOMIC & PLANNING SYSTEMS 3 SWISS FLOWER SHOP TIF REVIEW | 9/18/2017
ECONOMIC & PLANNING SYSTEMS
PROJECT OVERVIEW
ECONOMIC & PLANNING SYSTEMS 4 SWISS FLOWER SHOP TIF REVIEW | 9/18/2017
SWISS FLOWER SHOP
Project: Swiss Flower Shop
Location: SE Corner of 44th Avenue and Jellison Street
Development Program: 19,800 square feet of retail and maker space
Phasing:Built in three separate phases between 2018 and 2024
Estimated Annual Sales: $200 per square foot / $1.32 million per year
PROJECT OVERVIEW
ECONOMIC & PLANNING SYSTEMS 5 SWISS FLOWER SHOP TIF REVIEW | 9/18/2017
SWISS FLOWER SHOP: PHASE I
Program: 6,600 square feet of retail space
Est. Completion Year: 2019
Estimated Annual Sales: $1.32 million per year ($200 per sq. ft.)
Estimated Market Value: $1.60 million ($242 per sq. ft.)
PROJECT OVERVIEW
ECONOMIC & PLANNING SYSTEMS 6 SWISS FLOWER SHOP TIF REVIEW | 9/18/2017
SWISS FLOWER SHOP: PHASE II
Program: 6,000 square feet of maker space
Est. Completion Year: 2022
Estimated Annual Sales: N/A
Estimated Market Value: $853,000 ($142 per sq. ft.)
PROJECT OVERVIEW
ECONOMIC & PLANNING SYSTEMS 7 SWISS FLOWER SHOP TIF REVIEW | 9/18/2017
SWISS FLOWER SHOP: PHASE III
Program: 7,200 square feet of maker space
Est. Completion Year: 2025
Estimated Annual Sales: N/A
Estimated Market Value: $1.1 million ($153 per sq. ft.)
I-70/KIPLING
ECONOMIC & PLANNING SYSTEMS 8 SWISS FLOWER SHOP TIF REVIEW | 9/18/2017
URBAN RENEWAL PLAN
PURPOSE
•To reduce, eliminate, and prevent the spread of blight within the Area and to stimulate
growth and investment within the Area boundaries.
FINANCING MECHANISMS
•Approved to utilize property and sales tax increment for projects located in the plan area.
•It is at the discretion of the URA and the City to determine the appropriate projects, funding
periods, and revenue sharing amounts.
•Approved December, 2015
•25 Year TIF Clock (exp. 2040)
PLAN AREA
•Generally, surrounding the Kipling and I-70 corridors
•The proposed project is included in the area and located near at the intersection of 44th
Avenue and Jellison Street
I-70/KIPLING
ECONOMIC & PLANNING SYSTEMS 9 SWISS FLOWER SHOP TIF REVIEW | 9/18/2017
PLAN AREA
Project Location
I-70/Kipling Urban Renewal Area
PROJECT EVALUATION CRITERIA
ECONOMIC & PLANNING SYSTEMS 10 SWISS FLOWER SHOP TIF REVIEW | 9/18/2017
Three primary criteria for evaluating project requests for TIF:
1.Eligible Costs
2.Developer Returns (“But-for” analysis)
3.Project Revenue Generation Potential
PROJECT EVALUATION CRITERIA
ECONOMIC & PLANNING SYSTEMS 11 SWISS FLOWER SHOP TIF REVIEW | 9/18/2017
ELIGIBLE PROJECT COSTS
TOTAL ELIGIBLE
COSTS
$1.62 million
Description Phase I Phase II Phase III Total
Eligible Project Costs
Land $253,500 $126,750 $126,750 $507,000
Eligible Building Costs [1]$481,800 $0 $0 $481,800
Site-Detention Pond $89,000 $0 $0 $89,000
Xcel and Sitework $63,050 $0 $0 $63,050
Parking Lot $3,500 $0 $0 $3,500
Landscaping $95,000 $0 $0 $95,000
Exterior Curb and Gutter $187,136 $0 $0 $187,136
City Fees [2] $37,000 $0 $0 $37,000
Electrical Lateral $0 $7,500 $7,500 $15,000
Gas Lateral $0 $7,500 $7,500 $15,000
Water Tap $0 $15,000 $15,000 $30,000
Sewer Tap $0 $15,000 $15,000 $30,000
Asphalt, Curb, and Gutter $0 $35,000 $35,000 $70,000
Subtotal $1,209,986 $206,750 $206,750 $1,623,486
[1] Eligible building cost % determined by taking a vanilla shell cost of $120.00 per sq. ft. against an improved custom cost of $193.00 per sq. ft. and applying the difference of $73.00 per sq. ft. to the building sq. ft. in each phase.
[2] paid to city for future improvements in front of existing business
Source: Swiss Flower Shop; Economic & Planning Systems
\\EPSDC02\Proj\173013-Wheat Ridge 44th Ave TIF\Models\[173013-TIF Model-08-15-2017.xlsm]Elig Cost-2-PPT
PROJECT EVALUATION CRITERIA
ECONOMIC & PLANNING SYSTEMS 12 SWISS FLOWER SHOP TIF REVIEW | 9/18/2017
DEVELOPER RETURNS
PURPOSE
•Evaluate the need for public assistance in order for the project to be feasible.
•In other words, is the project feasible but-for the public investment?
METHODOLOGY
1.Summarize total project costs and annual net operating income (NOI)
2.Determine appropriate performance metric
–For the purposes of this analysis we are using return/yield on cost (Annual NOI /
Total Cost)
–Typical developer target = 6% to 8%
–Swiss Flower Shop Target Return = 7.00%
3.Estimate amount of public subsidy necessary for developer to realize an appropriate
rate of return
PROJECT EVALUATION CRITERIA
ECONOMIC & PLANNING SYSTEMS 13 SWISS FLOWER SHOP TIF REVIEW | 9/18/2017
DEVELOPER RETURN WITH AND WITHOUT PUBLIC SUBSIDY
PROJECT COST
Includes land acquisition, site work,
infrastructure, architecture & engineering,
vertical construction, tenant improvements,
and others.
ANNUAL REVENUE
Assumes a rental rate of:
•Phase I: $15/sq. ft. (NNN)
•Phase II: $10/sq. ft. (NNN)
•Phase III: $10/sq. ft. (NNN)
Project Return without City/URA Investment
Description Phase I Phase II Phase III Build-out
Project Cost
Developer Cost $2,045,312 $811,750 $985,750 $3,842,812
City/URA Contribution $0 $0 $0 $0
Net Cost $2,045,312 $811,750 $985,750 $3,842,812
Stabilized NOI $94,500 $54,900 $65,880 $215,280
Return-on-Cost 4.6%6.8%6.7%5.6%
Project Return with City/URA Investment
Description Phase I Phase II Phase III Build-out
Project Cost
Developer Cost $2,045,312 $811,750 $985,750 $3,842,812
City/URA Contribution $695,312 $27,464 $44,607 $767,383
Net Cost $1,350,000 $784,286 $941,143 $3,075,429
Stabilized NOI $94,500 $54,900 $65,880 $215,280
Return-on-Cost 7.0%7.0%7.0%7.0%
ESTIMATED PUBLIC
INVESTMENT
$767,383
PROJECT EVALUATION CRITERIA
ECONOMIC & PLANNING SYSTEMS 14 SWISS FLOWER SHOP TIF REVIEW | 9/18/2017
REVENUE GENERATION POTENTIAL
PROPOSED TERMS
Property Tax: 100% of annual property tax increment generated by each phase for a 10-year periodSales Tax: 50% of annual sales tax increment generated by each phase for a 10-year period
PROPERTY TAX AND SALES TAX REVENUEPHASE I (2019-2028)
Property Tax: $272,717Sales Tax: $205,964
Total Amount: $478,682
PHASE II (2022-2031)
Property Tax: $111,900Sales Tax: N/A
Total Amount: $111,900
PHASE III (2025-2034)
Property Tax: $161,511Sales Tax: N/A
Total Amount: $161,511
TOTAL REVENUE
POTENTIAL
$752,092
PROJECT EVALUATION CRITERIA
ECONOMIC & PLANNING SYSTEMS 15 SWISS FLOWER SHOP TIF REVIEW | 9/18/2017
SUMMARY
1.Eligible Costs $1.62 million
2.Developer Returns (“But-for” analysis)$767,383
3.Project Revenue Generation Potential $752,092
First 10 Years
Description Phase I Phase II Phase III Total
2018-2028 2018-2031 2018-2034
Property Tax $0 $0 $0 $0
Sales Tax $205,964 $0 $0 $205,964
Total $205,964 $0 $0 $205,964
Years 10 through 25
Description Phase I Phase II Phase III Total
2029-2040 2032-2040 2035-2040
Property Tax $505,312 $151,943 $141,218 $798,473
Sales Tax $615,059 $0 $0 $615,059
Total $1,120,371 $151,943 $141,218 $1,413,533
Project Total
Description Phase I Phase II Phase III Total
2018-2040 2018-2040 2018-2040
Property Tax $505,312 $151,943 $141,218 $798,473
Sales Tax $821,024 $0 $0 $821,024
Total $1,326,336 $151,943 $141,218 $1,619,497
URBAN RENEWAL AUTHORITY AND CITY REVENUE
ECONOMIC & PLANNING SYSTEMS 16 SWISS FLOWER SHOP TIF REVIEW | 9/18/2017
SALES TAX AND PROPERTY TAX
SALES TAX
City to receive 50% of sales during first 10
years of each phase and 100% thereafter.
Total Amount (2018-2040): $821,024
PROPERTY TAX
URA to receive 0% of property tax during first
10 years of each phase and 100% thereafter.
Total Amount (2018-2040): $798,473
TOTAL CITY/URA
REVENUE (2018-2040)
$1.62 million
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URBAN RENEWAL AUTHORITY AND CITY REVENUE
ECONOMIC & PLANNING SYSTEMS 17 SWISS FLOWER SHOP TIF REVIEW | 9/18/2017
SALES TAX AND PROPERTY TAX
Memorandum
TO: Mayor and City Council THROUGH: Patrick Goff, City Manager FROM: Scott Brink, Public Works Director
DATE: September 11, 2017 (For September 18, 2017 Study Session) SUBJECT: Activate 38 Project
ISSUE: Thirty-Eighth Avenue between Kipling Street and Youngfield Street has long been identified as needing various upgrades and improvements. In addition to the roadway condition itself and the lack of curb and
gutter, it needs improved bicycle and pedestrian facilities, improved drainage, enhanced overall safety features, and it has utility issues that need to be addressed. Comprehensively, the solution would be to combine all of the needs into a single construction project. However, past efforts to construct the entire
project have either lacked traction or failed after extensive discussion, with lack of funding being a primary factor.
As a result, more of a Band-Aid approach has been taken as resources allowed. For example, a very small segment of sidewalk along the south side of 38th near Tabor was constructed in 2015 with a small amount of funding dedicated for bike/ped improvements. As private property develops and re-develops, it provides opportunities to construct infrastructure, such as the new sidewalk along the north side of the roadway that was completed as part of the Fireside at Applewood Development. In 2016, Localworks, along with several other community partners were successful in attaining a $75,000 Active Living Grant for planning and assessment purposes to address multi-modal needs and safety on this corridor. Over the past year, Localworks and their partners have gathered community input through outreach forums, walking and bicycle audits, and other methods of data collection. The program is known as the Activate 38 Project, and the purpose is to identify and prioritize opportunities for improvements,
advocate for policy, and provide recommendations to increase active transportation, transit, and wheelchair rolling along 38th Avenue between Kipling and Youngfield.
Next Steps Localworks will be providing an update to the City Council on their progress to date. Activate 38 is also working with the City staff on a demonstration project along 38th Avenue from Nelson Street to Pierson
Street, which is scheduled for October 1-7. The attached memorandum from Localworks describes the program and the demonstration project in more detail. FINANCIAL IMPACT: None – Staff participation to assist and oversee the pilot project.
ATTACHMENTS: 1. Localworks Memo
7391 W. 38th Avenue, Wheat Ridge, CO 80033 ph: 720.259.1030 fax: 303.940.9332 |Page 1 of 1
MEMORANDUM SEPTEMBER 12, 2017
To: Wheat Ridge City Council From: Britta Fisher & Jenny Snell
City of Wheat Ridge Localworks
Rachel Hultin, Bicycle CO
Re: Activate 38 Project
ACTIVATE 38: WEST OF KIPLING is a program of Localworks, funded by a $75,000 Kaiser
Permanente “Active Living Neighborhood Grant,” support from the City of Wheat Ridge, and an
AARP Community Challenge Grant. The purpose of Activate 38 is to increase active
transportation, transit, and wheelchair rolling along 38th Avenue between Kipling and
Youngfield. Over the course of 2017 and early 2018, a coalition of residents, businesses, schools,
organizations, and city officials are working together to:
1.Gather community input through outreach, forums, events, walk, bike, and roll audits,
data collection, and mapping to inform an Active Transportation Assessment.
2.Plan a demonstration project addressing key stakeholder concerns then host a
community event to engage the community and solicit input on Active Living Plan
recommendations.
3.Work with coalition to develop an Active Living Plan identifying priority short and long
term improvements in the project area to increase active transportation, transit, and
wheelchair rolling.
The grant is divided into 5 phases to develop a community-informed Active Living Plan.
•Phase I: Initiate Coalition [Jan - Mar 2017]
•Phase II: Engage Stakeholders and Gather Input [Apr - Jun 2017]
•Phase III: Assess Corridor and Explore Possibilities [Jul - Sept 2017]
•Phase IV: Prioritize Improvements and Policies [Oct - Dec 2017]
•Phase V: Develop Active Living Plan [Jan - Mar 2018]
What is the ACTIVATE 38: WEST OF KIPLING Active Living Coalition?
The ACTIVATE 38 Active Living Coalition is open to anyone interested in improving conditions
along 38th Avenue. The coalition is currently supported by: Localworks, City of Wheat Ridge
(Public Works, Parks and Recreation and Community Planning), Colorado Senior Connection-
Wheat Ridge, Bicycle Colorado, CREA Results, Jefferson County Public Health, Radian |
Attachment 1
7391 W. 38th Avenue, Wheat Ridge, CO 80033 |Page 2 of 2
Placematters, Kullerstrand Elementary, Prospect Valley Elementary, Everitt Middle School, Five
Fridges Farm, Wheat Ridge Active Transportation Advisory Team, Wheat Ridge Education
Alliance, local residents, business owners and school leadership.
Coalition meetings are held monthly at a location in the project area and are open to anyone
interested in attending. The next meetings are November 1, 6:30-8:00pm at Everitt Middle
School, and December 13, noon-1:30pm at the Wheat Ridge Recreation Center.
Assessment Activities to date
•Community input at three coalition meetings on maps of project area
•Two Walking Labs in partnership with Kullerstrand and Prospect Valley
•Two Walk JeffCo walk audits in partnership with Jefferson County Public Health and
Colorado School of Mines
•One bicycle audit in partnership with the Wheat Ridge Active Transportation Advisory
Team
•Safe Routes to School parent surveys at Kullerstrand and Prospect Valley
•First person interviews with residents along 38th Avenue
•Community storytelling
•Intercept surveys at Wheat Ridge Recreation Center
•Bike rack usage spot surveying at Wheat Ridge Recreation Center
•Traffic and transit usage data collection through Wheat Ridge Public Works
Key concerns identified by stakeholders
•Make it safer to cross the street.
•Buffer cars from people walking, biking and rolling.
•Slow down cars.
•Improve the sense that 38th Avenue is a place for people.
Using data and community input, Activate 38 is working with the City of Wheat Ridge on a
demonstration project the week of Oct 1 - Oct 7 along 38th Avenue from Nelson Street to
Pierson Street. The demonstration project will include temporary installments addressing the
four key concerns and will include a community event at Louise Turner Park on Saturday
October 7, from 1 to 3 pm. The event will provide an opportunity to solicit feedback from the
community and provide additional opportunities for involvement.
For those unable to attend the event we will host a walk for key stakeholders such as city staff
and elected officials the week of October 9. Jenny Snell, Activate 38 Coordinator, will follow up
with you on details for that opportunity to learn more about the project and what has been
accomplished along the corridor.
ph: 720.259.1030 fax: 303.940.9332