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HomeMy WebLinkAbout2024 - RESO 20 - RWR AgreementCITY OF WHEAT RIDGE, COLORADO RESOLUTION NO. 20 Series of 2024 TITLE: A RESOLUTION ADOPTING A FIRST AMENDMENT TO A COOPERATION AGREEMENT BETWEEN THE CITY OF WHEAT RIDGE AND THE WHEAT RIDGE URBAN RENEWAL AUTHORITY DBA RENEWAL WHEAT RIDGE PROVIDING FOR AN EXTENSION OF A SALES TAX SHARING AGREEMENT WITH U.S. RETAIL PARTNERS IN AN AMOUNT NOT TO EXCEED $2,000,874 OR FIFTEEN YEARS FROM THE ORIGINAL AGREEMENT DATE 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 (the “City Council”) established the Wheat Ridge Urban Renewal Authority d/b/a/ Renewal Wheat Ridge (the “Authority”) 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 I-70/Kipling Corridors Urban Renewal Plan (the “Urban Renewal Plan” or the “Plan”) for the area described therein (the “Urban Renewal Area”); and 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 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 Plan adopted the utilization of property and sales tax increment for the Property and authorizes the Authority 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, the Authority and the Developer entered into a Redevelopment Agreement on March 15, 2019 (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 2 precedent, the Authority will reimburse the Developer for eligible costs incurred in connection with such eligible improvements in the maximum amount of $8,441,138 (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, on May 13, 2019, the City of Wheat Ridge entered into a Cooperation Agreement with the Wheat Ridge Urban Renewal Authority, dba Renewal Wheat Ridge to pledge one-cent of its three and one half percent sales tax for a period of five years or $2,000,874; and WHEREAS, circumstances such as the Covid pandemic and consumer retail trends drastically impacted sales tax generation within the activity; and WHEREAS, the County Assessor’s property tax calculations did not meet the anticipated revenues expected to be generated; 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 the Authority believe it is in the best interests of the City and the Authority to enter into a First Amendment to a Cooperation Agreement (the “First Amendment”) EXHIBIT A related to the Project; and WHEREAS, the First Amendment will extend the Cooperation Agreement an additional 10-years, or 15-years from the original agreement date in an amount not to exceed $2,000,874, whichever occurs first; and WHEREAS, there has been filed with the City Clerk of the City (the “City Clerk”) the proposed form of the First Amendment. 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, entering into a First Amendment to the May 13, 2019, Cooperation Agreement is in the best interests of the inhabitants of the City. Section 2. Approval of a First Amendment. The First Amendment, 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 First Amendment, 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 First Amendment by the Mayor shall be 3 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 agents of the City directed toward the redevelopment of the Project and the execution and delivery of the First Amendment are hereby ratified, approved and confirmed. Section 5. Severability. 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 7. Effectiveness. This Resolution shall take effect immediately. DONE AND RESOLVED this 22nd day of April 2024. Bud Starker, Mayor Attest: Margy Greer, Sr. Deputy City Clerk