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HomeMy WebLinkAbout03.04.24 - Study Session NotesCITY OF WHEAT RIDGE, COLORADO STUDY SESSION NOTES Hybrid - Virtual Meeting March 4, 2024 Mayor Starker called the Study Session to order at 6:32 p.m. This meeting was conducted both as a virtual meeting and hybrid, where some members of the Council or City staff were physically present at the Municipal building, and some members of the public attended in person as well. A quorum of members of Council were present in Council Chambers for this session. Mayor Starker also explained the virtual/hybrid meeting format, how citizens will have the opportunity to be heard, and the procedures and policies to be followed. Council Members present: Scott Ohm, Jenny Snell, Korey Stites, Amanda Weaver, Leah Dozeman (virtual), Dan Larsen, Janeece Hoppe, and Rachel Hultin. Also present: City Manager, Patrick Goff; Deputy City Manager Alli Scheck; Director of Community Development, Lauren Mikulak; Director of Public Works, Maria D’Andrea; Renewal Wheat Ridge Executive Director, Steve Art; Assistant City Manager, Marianne Schilling; Sr. Deputy City Clerk Margy Greer; other staff and interested residents. Public’s Right to Speak No one came forward tonight. Note about Wheat Ridge Speaks: Members of the public may visit the Wheat Ridge Speaks website and enter written comments of up to 1,000 words on any Council agenda item. The deadline for the public to submit comments is 12:00 Noon Mountain Time on the day of a Council session so that Council members, other elected officials and City Staff have time to review the comments before the meeting on Monday evening. The City Clerk’s Office transcribes those Wheat Ridge Speaks comments into these minutes, placing each comment along with the record for that agenda item. 1. Amendment to the Cooperation Agreement between the City and Wheat Ridge Urban Renewal Authority for the Walmart Redevelopment Issue U.S. Retail Partners, LLC (the “Developer”) redeveloped the vacant Walmart retail building within the Applewood Village Shopping Center in 2019 which resulted in new retailers such as Hobby Lobby, HomeGoods, Sierra Trading Post, Ultra, Eyeglass World and Chick-fil-A. To assist in the redevelopment, the City, and the Wheat Ridge Urban Renewal Authority dba Renewal Wheat Ridge (RWR) entered into a Cooperation Agreement dated May 13, 2019 which authorized the City to pledge a 1.0 cent sales tax increment to the project for a period of five years up to a maximum amount of $2,000,874. The sales tax pledge will expire in 2024. Due to the emergence of the COVID crisis shortly after the new retailers opened, and other economic factors, the sales tax pledge is estimated to generate only $390,471, well short of the $2,000,874 originally estimated by revenue modeling. The Developer has requested an extension of the sales tax pledge for another ten years, without amending the maximum sales tax pledge of $2,000,874. City Manager Patrick Goff gave some background on the original cooperation agreement, stating that Walmart closed their doors in 2017 and two years later COVID hit, which caused another economic downturn for the US Retail shopping center. US Retail is requesting to extend the share of sales tax for another ten years up to original maximum, whichever comes first. Mr. Goff explained that the request is to continue the one-cent sales tax from the three and one-half cent of the current sales tax. He introduced Will Dennis, the representative from US Retail and stated that Steve Art, Director of the Urban Renewal Authority and the City’s Economic Development Director will be on hand to answer questions after the presentation. Mr. Dennis, representative of US Retail, gave a brief introduction of their company’s history, stating they own over 500 shopping centers across the country; have ben a public company since 1994; and their approach to corporate responsibility. He stated they pride themselves on their corporate responsibility; creation of long-term value; brand and reputation, and that they have unequaled strategic advantages. He spoke to their portfolio of shopping centers, anchor stores, location, service to communities; their team of experienced professionals; close relationships and communication with their tenants; flexible development; and redevelopment opportunities. Mr. Dennis gave a PowerPoint presentation showing their best-in-class operating platform, strong value creation pipeline, balance sheet and liquidity strength, and included the plans for moving forward on the Wheat Ridge site depicting renderings of retail store locations and plans for the future. He reviewed the history of site since Walmart vacated in 2017, stating that the shopping center has had its challenges. He also stated the Applewood Shopping Center is a core asset for Regency/US Retail Partners. In addition, challenges with the Jefferson County Assessor, the establishment of the property tax increment portion of the Agreement was delayed several years. Estimates indicate than an extension of the time for the sales tax portion of the agreement will put them close to the original financial assumptions within 7-10 years. He stated he is proud of the center and glad to be working with Wheat Ridge City Council. Staff Reports Renewal Wheat Ridge Executive Director, Steve Art presented the issue and summarized background on the issue, where on May 13, 2019, City Council approved a Cooperation Agreement authorizing the City to share 1.0 cent of its 3.5 cents sales tax for a period of five-years. Mr. Art stated that if approved, the City will continue to share 1.0 cent of its 3.5 cent sales tax generated from this project for a period of an additional 10-years or a maximum amount of $2,000,874, whichever occurs first. Based on current revenue projections, the maximum amount is estimated to be reached in Fiscal Year 2028. The redevelopment of the Walmart site is currently generating approximately $815,000 in sales tax revenue annually for the City. Mr. Art went on to explain that due to the emergence of the COVID crisis as well as other economic factors, the modeled timing and revenue assumptions have been different than the revenue models originally anticipated. The result is that the economic value of the agreement is approximately $3.7 million less than anticipated which is negatively impacting the operation and future investments of the shopping center. If the Cooperation Agreement is amended to extend the sharing of the sales tax by another ten years up to a maximum of $2,000,874, the economic value of the agreement will only be $2.6 million less than anticipated. CM comments and feedback Councilmembers asked detailed questions about several topics, engaging in discussion among themselves and with staff including: • Several CM expressed their thanks for the staff efforts on this complex issue. • A detailed discussion of the practical operation, legal requirements, and outcome desires for resolving this issue. MPT Stites proposed a consensus for City Council to move forward with a formal presentation at a future Council meeting adopting a resolution approving an Amendment No. 1 to the Cooperation Agreement between the City of Wheat Ridge and RWR to extend the sales tax pledge for another ten years up to a maximum of $2,000,874. There was General Consent from City Council to move forward with the Amended Agreement. 2. Final Design for The Green at 38th Issue Staff received direction from City Council in 2018 to engage a designer to develop conceptual designs for a community gathering space at The Green on 38th Avenue in front of Stevens Elementary. The final design is now nearly complete, and construction is scheduled to begin on June 1, 2024, when the school closes for summer break. Staff and the architect for the project, Architerra Group, will provide an update on the project and present the final design to City Council at the March 4th study session. Staff Reports Presentation on the issue was provided by City Manager Patrick Goff and included items, but was not limited to: • The background of the issue, including prior actions. • The financial impact. • The preferred concept design. Mr. Goff finished the presentation stating that the City and the School District have an existing agreement that allows for shared use of The Green, which has been in place for the last several years. The School District continues to be very supportive of this redesign and continued shared use, which as noted above, meets important goals for both the City and District. The original intent was for the City to enter into a long-term lease with the District to utilize the District’s property for this project. However, the District has now agreed to convey the property to the City in exchange for the City paying for and constructing a new parking lot for Stevens Elementary. Mark Taylor of the Architerra Group gave a PowerPoint presentation which included conceptual drawings and the design for The Green at 38th, located east of Wadsworth on 38th Avenue in front of Steven Elementary School. The Project Vision and Objectives included a formal performance space; a permanent structure for shade and performance or event support; a space or use that draws visitors to the park when no scheduled events are occurring; a shade/cover for users of the park; a visual and physical separation between the school and public space; a large unprogrammed green space; and the design should be self-contained so that adjacent roads don’t’ need to be closed for festivals/events. He showed four conceptual drawings of the space; a conceptual site plan stating the key considerations; providing some historical references, parking design and layout; the promenades showing sign markers; an art screen; pedestrian walkways; market layout; central gathering areas; play areas, musical play; stage; final concept and furnishings. Public Comments: From Wheat Ridge Speaks: Kathy Havens - Resident I have followed this project since its inception first became public. The proposed plans for this park, and for the front lawn of Stevens Elementary School, always included a new driveway or street to carry student drop offs and pick ups, from Upham Street, in a configuration that avoided student and park use automobile traffic on High Court. At a local District II meeting in February, 2024, we were advised that the school district was now proposing a through street, from Upham to High Court, to facilitate student drop offs/pick ups. Stevens has greatly increased its student population this year because of the closing of Wilmore-Davis. Traffic has exponentially increased this year with parents driving their children to school, especially since many of the students now live west of Wadsworth Boulevard and parents are concerned about their children crossing Wadsworth to reach their school. Traffic before school in the morning and after school in the afternoon, as it is now configured, needs to be considered by those planning for this park. The Stevens' property is used not only during the school day, but also after school, on weekends and throughout the summer for boys and girls soccer, softball, and baseball. The majority of these participants are brought to the games by their parents, who then stay to watch the games. Parking is often at a premium during these games, and is, in fact, often at a premium during the school day. Existing parking is often full even during school hours. Please provide some thought to these new conditions when planning for traffic and parking in the park. Visiting the area before, during and after the school day, and during athletic and other events, would be helpful. CM had comments and questions: Several CM and the Mayor thanked them for the informative presentation. CM engaged in a discussion and exchange of questions and proposals with the staff and among themselves, addressing the issue. In answer to a Council question, Patrick Goff stated that incorporating public art work into the project would be a different budget item for discussion. There was General Consent from City Council to move forward with the Amended Agreement. 3. Agreement with Jeffco School District for Development of The Green at 38th Issue Staff received direction from City Council in 2018 to engage a designer to develop conceptual designs for a community gathering space at The Green on 38th Avenue in front of Stevens Elementary. The final design is now nearly complete, and construction is scheduled to begin on June 1, 2024 when the school closes for summer break. Staff signed a nonbinding Letter of Intent with the Jefferson County School District which set forth the terms under which the District would convey the property necessary for The Green to the City in exchange for the City constructing a new parking lot for Stevens Elementary. The terms of the Letter of Intent have been incorporated into the attached Draft Contract to Buy and Sell Real Estate which will be presented to City Council at the March 4th study session. Staff Reports Presentation on the issue was provided by City Manager Patrick Goff and included unique items from the additional provisions of the contract in Section 29. Some of those where: 1. The City will cause the property for The Green to be a separately platted parcel – this process in underway. 2. The contract shall be conditioned on the inclusion of a reverter clause for the benefit of both Jefferson County Open Space (JCOS) and the Jefferson County School District. The City is currently working with JCOS to transfer the reverter from Town Center Park to The Green. The reverter clause will require the City to continue to operate The Green for “Park Purposes”. If the City fails to maintain the property for “Park Purposes”, JCOS may take over operation of the park and/or the property may be deeded back to the District. 3. The City will construct a parking lot and associated hardscape on District property that is like size and capacity as the current parking lot in exchange for the District deeding the property associated with The Green to the City. The engineers estimate for construction of the parking lot is approximately $1.4 million. Jefferson County School District Representative stated that the agreement is a standard real estate agreement. The parking lot still will be owned and maintained by the School District. The City agrees to use the Open Space property for park and recreation uses. The group finished the presentation and stood by to answer questions. CM had comments and questions: Several CM and the Mayor thanked Mr. Goff for the informative presentation. CM engaged in a discussion and exchange of questions and proposals with the staff and among themselves, addressing the issue. Mr. Goff explained the Open Space reverter issue and how the reverter is attached to property. He also explained that grants are being researched and staff is looking at other funding to make this possible. There was General Consent from City Council to move forward with the Amended Agreement. 4. Resolution in Opposition to HB24-1152 – ADU Policy Preemptions Issue The Colorado Legislature’s House Bill 24-1152 preempts and undermines the efforts of the City of Wheat Ridge to continue a well-researched and community-driven accessory dwelling unit (ADU) policy. Notably, it would void the City’s locally supported requirement that ADUs be owner-occupied. Council may consider providing consensus to oppose HB24-1152 by resolution. Staff Reports City Manager Patrick Goff stated that the City spent many hours working on the ADU ordinance they now have in place and this Bill is in direct opposition to one of the items Council has placed in the City’s Code: it preempts the requirement that ADUs be owner occupied, undermining the efforts of the City Council. Mayor Starker stated this is not only local preemption but it directly effects years of work done by City Council. He requested Council’s support for the proposed resolution. Discussion included but was not limited to: • The previous actions taken by the City. • The bill undermines the efforts of the City of Wheat Ridge. • The bill preempts the City’s requirement that ADUs be owner occupied. • The bill limits the City’s ability to regulate ADUs in the future. CM had comments and questions: Discussion ensued and Council Members proposed a process for reviewing legislation and deciding whether to take a position; a broader conversation to take place regarding preemptive legislation from the State; and discussing how often Bills may come before Council that need to be discussed and perhaps voted on. After discussion, consensus was obtained to have a Resolution brought forward opposing any legislation that preempts home rule authority; thus, allowing opposition to Resolution 24-1152 for that reason. 5. Staff Report(s) None. 6. Elected Officials’ Report(s) CM Ohm – stated he went to a new business, Illegal Peace, on Wadsworth and enjoyed it immensely. CM Stites – stated he and Councilor Weaver and he will be holding their District meeting on March 30th at 9:00 am at the Recreation Center. Greg Moss and Lindsay Reinhardt will be the guest speakers, talking about Lutheran Medical Center. CM Hoppe - thanked staff for the great working relationship they have the businesses. She stated she called staff and told them that the bike racks near Illegal Peace were blocking ADA accessibility, they spoke to the developer and it was quickly rectified. CM Larson – stated CM Bozeman and his District IV meeting is being held on April 2nd at Anderson Park, Anderson House and there would be two hot topics for discussion. Mayor Starker invited everyone to have Coffee with the Mayor on Saturday Morning at 9 am. He also stated there would be no Council meeting next Monday Night coffee due to a delegation of Council Members going to Washington D.C. City Manager Patrick Goff stated that as of today, $2 million is still in the budget for housing and the House will vote on it next week. ADJOURNMENT The Study Session adjourned at 9:02 pm. APPROVED BY CITY COUNCIL ON March 25, 2024. _________________________________ Margy Greer, Sr, Deputy City Clerk _________________________________ Korey Stites, Mayor Pro Tem