HomeMy WebLinkAboutResolution 2017-0034CITY OF WHEAT RIDGE, COLORADO
RESOLUTION NO. 34
Series of 2017
TITLE: A RESOLUTION CONCERNING THE PROPOSED
REDEVELOPMENT AT THE SOUTHEAST CORNER OF 44TH
AVENUE AND JELLISON STREET AUTHORIZING A
COOPERATION AGREEMENT PERTAINING TO THE COLLECTION
OF TAX INCREMENT FINANCING
WHEREAS, 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; and
WHEREAS, the City Council of the City established the Wheat Ridge Urban
Renewal Authority d/b/a/ Renewal Wheat Ridge (the RWR) on October 18, 1981, as an
urban renewal authority pursuant to Colorado Revised Statutes, Part 1 of Title 31,
Article 25, as amended; and
WHEREAS, the City Council has adopted the 170/Kipling Corridors Urban Renewal
Plan, as amended (the Plan) for the area described therein (the Urban Renewal Area); and
WHEREAS, The Sheard Family Trust (the Developer) has acquired title to, certain
real property which is located at the southeast corner of 44th Avenue and Jellison Street
(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 City has determined and hereby determines that it is in the best
interests of the City and its citizens to assist in the redevelopment of the Project; and
WHEREAS, RWR has determined that the redevelopment of the Project in order
to remediate blight is consistent with and in furtherance of the purposes of RWR and the
Urban Renewal Plan; and
WHEREAS, the Urban Renewal Plan contemplates that a primary method of
financing projects within the urban renewal area will be through the use of property tax
increment revenues and City sales tax increment revenues; and
WHEREAS, the Urban Renewal Plan adopted the utilization of property and
sales tax increment for the Property and authorizes RWR to pledge such property tax
increment revenues and City sales tax increment revenues to finance public
infrastructure that benefits the urban renewal area pursuant to one or more Cooperation
Agreements (as defined therein); and
WHEREAS, RWR and the Developer entered into a 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, RWR will reimburse the Developer for eligible costs incurred in connection
with such eligible improvements in the maximum amount of $767,383 (the
"Reimbursement Amount ") with the Reimbursement Amount to be payable solely from
property tax increment revenues and sales tax increment revenues to be generated
from the redevelopment of the Project; and
WHEREAS, in connection with the execution and delivery of the Redevelopment
Agreement and the repayment of the Reimbursement Amount in accordance therewith,
the City and RWR believe it is in the best interests of the City and RWR to enter into a
Cooperation Agreement (the "Cooperation Agreement") related to the Project; and
WHEREAS, there has been filed with the City Clerk of the City (the "City Clerk")
the proposed form of the Cooperation Agreement.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Wheat Ridge, Colorado, that:
Section 1. Finding of Best Interests and Public Purpose. The City
Council hereby finds and determines, pursuant to the Constitution, the laws of the State
and the City's home rule charter (the "Charter"), and in accordance with the foregoing
recitals, that adopting this Resolution, redeveloping the Project and entering into the
Cooperation Agreement are in the best interests of the inhabitants of the City.
Section 2. Approval of Cooperation Agreement. The Cooperation
Agreement, as shown in Exhibit 1 in substantially the form on file with the City Clerk, is
in all respects approved, authorized and confirmed. The Mayor is hereby authorized
and directed to execute and deliver the Cooperation Agreement, for and on behalf of the
City, in substantially the form and with substantially the same contents as is on file with
the City Clerk, provided that such document may be completed, corrected or revised as
deemed necessary by the parties thereto in order to carry out the purposes of this
Resolution. The execution of the Cooperation Agreement by the Mayor shall be
conclusive evidence of the approval by the City Council of such document in
accordance with its terms.
Section 3. Direction to Act. The City Clerk is hereby authorized and
directed to attest all signatures and acts of any official of the City in connection with the
matters authorized by this Resolution and to place the seal of the City on any document
authorized and approved by this Resolution. The Mayor, the City Manager, the City
Clerk, the City Attorney, and all other appropriate officials or employees of the City are
hereby authorized and directed to execute and deliver for and on behalf of the City any
and all additional certificates, documents, instruments and other papers, and to perform
all other acts that they deem necessary or appropriate, in order to facilitate the
redevelopment of the Project and implement and carry out the transactions and other
matters authorized by this Resolution.
Section 4. Ratification. All actions (not inconsistent with the provisions
of this Resolution) heretofore taken by the City Council or the officers, employees or
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agents of the City directed toward the redevelopment of the Project and the execution
and delivery of the Cooperation Agreement are hereby ratified, approved and
confirmed .
Section 5. Severabilitv. If any section, subsection, paragraph, clause or
provision of this Resolution or the documents hereby authorized and approved shall for
any reason be held to be invalid or unenforceable, the invalidity or unenforceability of
such section, subsection, paragraph, clause or provision shall not affect any of the
remaining provisions of this Resolution or such documents, the intent being that the
same are severable.
Section 6. Repealer. All prior resolutions, or parts thereof, inconsistent
herewith are hereby repealed to the extent of such inconsistency.
Section 8. Effectiveness. This Resolution shall take effect immediately.
DONE AND RESOLVED this 25th day of September, 2017.
nelle Shaver, City Clerk
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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/al 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
I-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, conser\ration 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/K.ipling Corridors
Urban Renewal Plan and reimbursement of up 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 City
as 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 lawful
procedures 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.
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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) :Thfrd 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 prov1s1on 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·1he
Agreement.
( d) Entire Agreefuerit. 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) Se¥etabiUty'. 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) Assigrirtient. 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.
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IN WITNESS WHEREOF, this Agreement is executed by the Parties as of June 6,
2017.
CITY OF WHEAT RIDGE, COLORADO
Attest:
WHEAT RIDGE URBAN RENEWAL AUTHORITY
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ATTEST: Tim Rogers, Chairperson
Steve Art, Executive Director
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