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HomeMy WebLinkAbout02-24-2025 Special Study Session NotesSPECIAL STUDY SESSION NOTES CITY OF WHEAT RIDGE, COLORADO Hybrid - Virtual Meeting February 24, 2025 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. The Mayor explained the virtual/hybrid meeting format, how citizens will have the opportunity to be heard, and the procedures and policies to be followed. 1. Call to Order Mayor Starker called the Special Study Session to order at 7:45 p.m., following a Regular Meeting of City Council. 2. Attendance Council Members present: Jenny Snell, Rachel Hultin, Janeece Hoppe, Amanda Weaver, Korey Stites, Dan Larson, Leah Dozeman and Scott Ohm. Absent: None. Also present: City Manager Patrick Goff, Deputy Community Development Director Lauren Mikulak, Senior Deputy City Clerk Margy Greer, and other staff and interested residents. 3. Public’s Right to Speak None. 4. Fruitdale School Lofts City Manager Patrick Goff introduced this item and reviewed the long timeline of prior actions regarding the historic designations, the project milestones, and the current situation. On November 28, 2016, City Council approved an Amended and Restated Development Agreement with the Wheat Ridge Housing Authority (WRHA) and Fruitdale School Partners LLC (FSP), for the redevelopment of Fruitdale School into a sixteen-unit residential development with five of those units restricted as affordable. The investment from the City and the WRHA into this project assisted in the preservation and rehabilitation of a National Registered historic property and the creation of affordable rental units for Wheat Ridge residents. FSP is in active negotiations to sell this property to Foothills Regional Housing. A sale of this property will impact the terms and conditions of the Agreement the City and WRHA entered into with FSP. The timeline for the redevelopment of Fruitdale School goes as far back as 2007 with significant action undertaken by the WRHA. Key actions taken by City Council are summarized below. • October 5, 2015 – City Council reviewed a mixed-use development proposal from Hartman Ely Investments (HEI) for the redevelopment of Fruitdale School • January 11, 2016 – City Council reviewed a residential only development proposal from HEI and considers a public-private partnership • February 8, 2016 – City Council approved Resolution No. 15-2016 supporting the redevelopment of Fruitdale School, authorizing financial participation in the amount of a $1.925 million loan and a $470,000 grant • February 22, 2016 – City Council approved Resolution No. 17-2106 approving the development agreement for the project and authorizing a loan up to $2.115 million and a $470,000 grant • May 9, 2016 – City Council approved an application from the WRHA for a zone change on the property from A-1, C-1 and R-3 to Mixed-Use Neighborhood • November 7, 2016 – City Council received an update on the project at study session including new terms for the City’s $2.115 million loan which would extend the payback period • November 28, 2016 – City Council approved an Amended and Restated Development Agreement with WRHA and FSP As part of the Amended and Restated Development Agreement, the City and WRHA committed to the following financial obligations: City loan - $2,115,000 (20-year term; interest accrues in 2018) City loan - $470,000 (35-year term; interest accrues in 2027) WRHA loan - $170,000 (35-year term; interest accrues in 2037) WRHA loan - $400,000 (35-year term; interest accrues in 2017) Fruitdale School Partners made one payment in the amount of $1.5 million to the City in 2018 towards the $2.115 million Freddie Mac loan leaving an outstanding total balance of $1.085 million owed to the City and $570,000 owed to the WRHA. The repayment of the remaining loans is contingent on FSP earning a 20% cash-on-cash return which has not occurred to date. Foothills Regional Housing has offered to purchase the property and assume the remainder of the $1.494 million loan; contribute $100,000 cash to the purchase price; pay $515,000 to cover deferred development and asset management fees; and increase the affordability of the existing units by additional project-based vouchers over time. Terms the for the Wheat Ridge Housing Authority is to forgive the $570,000 in loans and the City’s contribution would be $1.5 million of NOAH funds to the purchase price and receive $1,085,000 in repayment of the City load to the General Fund. Goff introduced Dani Ashley with Foothills Regional Housing (FRH) and spoke to the goals of FRH regarding the property and adding to their affordable housing portfolio. Community Development Director Lauren Mikulak reviewed the recommendations with Council. Staff recommended approval of the purchase and sale agreement between FRH and FSP. A sale to FRH would preserve and increase the affordable units from five to sixteen and preserve an historic asset in Wheat Ridge in partnership with FRH as a trust community partner. Staff offered three options to Council. After much discussion amongst Council and staff, Council reached consensus to move forward with the third option which is staff’s recommendation that the WRHA forgive the $570,000 in long-term loans and the city co tribute the full $2 million of NOAH funding to the project. There is some uncertainty concerning the status of the $2 million NOAH funding and if the Federal government will honor the budget appropriation. It may be prudent for the city to allocate the entirety of these funds for this project before the funding is rescinded. Contributing the full $2 million to this project would allow FRH to free up additional funding in their budget for other projects such as IVES II. 5. Staff Report(s) None. 6. Elected Officials’ Report(s) None. 7. Adjournment With no further business to come before Council, Mayor Starker adjourned the meeting at 8:11 p.m. _________________________________ Margy Greer, Senior Deputy City Clerk _________________________________ Korey Stites, Mayor Pro Tem