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HomeMy WebLinkAbout12-15-2025 Study Session Agenda PacketSTUDY SESSION AGENDA CITY COUNCIL MEETING CITY OF WHEAT RIDGE, COLORADO Monday, December 15, 2025 6:30 p.m. This meeting will be conducted as a virtual meeting, and in person, at: 7500 West 29th Avenue, Municipal Building, Council Chambers. City Council members and City staff members will be physically present at the Municipal building for this meeting. The public may participate in these ways: 1. Attend the meeting in person at City Hall. Use the appropriate roster to sign up to speak upon arrival. 2. Provide comment in advance at www.wheatridgespeaks.org (comment by noon on December 15, 2025) 3. Virtually attend and participate in the meeting through a device or phone: Click here to pre-register and provide public comment by Zoom (You must preregister before 5:00 p.m. on December 15, 2025) 4. View the meeting live or later at www.wheatridgespeaks.org, Channel 8, or YouTube Live at https://www.ci.wheatridge.co.us/view Individuals with disabilities are encouraged to participate in all public meetings sponsored by the City of Wheat Ridge. The City will upon request, provide auxiliary aids and services leading to effective communication for people with disabilities, including qualified sign language interpreters, assistive listening devices, documents in Braille, and other ways of making communications accessible to people who have speech, hearing, or vision impairments. To request auxiliary aid, service for effective communication, or document in a different format, please use this form or contact ADA Coordinator, (Kelly McLaughlin at ada@ci.wheatridge.co.us or 303-235-2885) as soon as possible, preferably 7 days before the activity or event. Public Comment on Agenda Items 1. Lutheran Legacy Campus Update 2. Staff Report(s) 3. Elected Officials’ Report(s) ITEM NO. 1 Memorandum TO: Mayor and City Council FROM: Patrick Goff, City Manager Lauren Mikulak, Community Development Director DATE: December 15, 2025 SUBJECT: Lutheran Legacy Campus Update ISSUE: In 2018, SCL Health purchased a 26-acre parcel at the Clear Creek Crossing (CCC) development to replace the existing, aging Lutheran Medical Center located on West 38th Avenue at the Lutheran Legacy Campus. The new state-of-the-art Lutheran Hospital opened in August 2024 at CCC, after a successful merger between Intermountain Health and SCL Health in 2022. The move of Lutheran Hospital to CCC provided the rare opportunity to reimagine the future of a 100-acre site in the heart of the City. This memorandum and study session will provide the newly elected Mayor and Council with a summary of prior actions and future steps for the redevelopment of this property. PRIOR ACTION: • City Council awarded a contract to MIG, Inc. on January 25, 2021, to lead the community through a master planning process for the Lutheran Legacy Campus. • City Council approved the Lutheran Legacy Campus Master Plan on October 25, 2021. • City Council passed a resolution on May 13, 2024, supporting the initiation of a legislative zone change for the Lutheran Legacy Campus. • Wheat Ridge voters passed a ballot measure at the November 2024 election — approved by 67% — amending the City Charter to allow building heights in the center of the campus to five stories and lowering height allowances on the perimeter of the site to 30 feet. • City Council approved a Code change to make available a form of mixed-use zoning for the Lutheran Legacy Campus on January 27, 2025. • City Council approved a Service Plan and Intergovernmental Agreement for the Legacy Metropolitan District Nos. 1-12 on February 24, 2025. • City Council approved a rezoning of the property to Mixed Use – Lutheran Legacy Campus on April 28, 2025. • City Council approved the Lutheran Legacy Campus Urban Renewal Plan on September 22, 2025. • Renewal Wheat Ridge approved a Public Finance Agreement with Legacy Community Authority and High Road Ventures, LLC on December 2, 2025. Study Session Memo – Lutheran Legacy Campus Update December 15, 2025 Page 2 BACKGROUND: Lutheran Legacy Campus Master Plan SCL Health was prepared to market the Lutheran Legacy Campus site in late 2020; however, City staff requested that any sale or marketing be put on hold. With such a large opportunity site embedded in an established residential neighborhood, the City wanted to establish a community-created vision before fielding any development inquiries or land use applications. SCL Health agreed to fund and partner in the master planning process. City Council awarded a contract to MIG, Inc. in January 2021 to lead that process. From April 2021 to October 2021, over 1,200 residents participated in surveys, meetings, and workshops to shape the plan’s goals and priorities. Community members were asked to share their vision for the future of the Legacy Campus. That public process culminated in a plan that outlines the following key community expectations and goals for the Campus: • provide public open space, • provide a mix of housing types, • integrate existing assets like the chapel, Blue House, and Rocky Mountain Ditch, • ensure development on the perimeter serves as a buffer and transition between the campus and existing adjacent neighborhoods, • integrate office and civic uses, and • provide neighborhood-serving retail that complements the area but doesn’t compete with economic development efforts at nearby Wadsworth and 38th Avenue. City Council formally adopted the Master Plan in October 2021. Lutheran Legacy Campus Rezoning The Lutheran Legacy Campus is just under 100 acres in size and originally contained many hospital-related buildings including West Pines Behavioral Health, Collier hospice facility, various medical office buildings, multiple accessory buildings such as the Blue House and chapel, and most notably, the original Lutheran Hospital building. The site was zoned primarily Planned Hospital District (PHD), and permitted uses included only hospitals, hospice care, and accessory uses customarily associated with a medical campus. There were small portions of other zone districts on the campus: one medical office building zoned Planned Commercial Development (PCD), and some lots along Dudley Street zoned Residential-Two (R-2) and Residential-One (R-1) that were platted in the 1940s as part of the hospital campus but never developed. The Master Plan recommended that the City apply one zone district to the Campus that aligns with the vision in that Plan, allowing a mix of land uses (residential, office, civic, retail and cultural), a mix of housing types, and requiring open space and multimodal Study Session Memo – Lutheran Legacy Campus Update December 15, 2025 Page 3 facilities. Council passed a resolution in support of initiating a legislative zone change for the Legacy Campus in May 2024. The Planning Division, with assistance from the City Attorney, developed the new Mixed-Use Lutheran Legacy Campus (MU-LLC) zoning regulations for the Legacy Campus which align with the recommendations of the Master Plan. The zoning regulations are based on the current mixed-use zoning regulations in Article XI of Chapter 26 but are highly customized to include specific recommendations and requirements of the Master Plan, including: • Low-density overlay around the campus perimeter which limits permitted uses in these areas to low-density housing (single-unit or duplex) and lowers building heights. • Requires 20% of the campus to be designated as public open space for the benefit of the entire community (double the standard for other mixed-use zones). • Taller buildings (up to 5 stories) including apartments will only be permitted in the center of the campus, not on the edges. • Important community assets like the chapel and Blue House will be required to be preserved. • Landscape buffers and large setback requirements to protect existing residential neighborhoods to the east and south. The MU-LLC zoning aims to create a realistic future—one that balances the most likely future land uses with the values of this community. While it is unlikely that every Wheat Ridge resident will embrace every aspect of this vision, at 100 acres in size and with a wide range of goals, there is something for everyone within the plan and the zoning: • Acres of dedicated publicly accessible open space • An improved and publicly accessible trail along the alignment of the Rocky Mountain Ditch • New sidewalks along Dudley Street and along both sides of Lutheran Parkway and Lutheran Parkway West • New bicycle facilities along Lutheran Parkway and Lutheran Parkway West • A first-of-its-kind tree preservation and replacement approach that protects the mature tree canopy • Protection of important landmarks like the Blue House and chapel that maintain the cultural heritage of the city and campus • A wide range of housing types that diversifies the city’s housing stock • Housing and open space along the perimeter of the campus that honors the character of the adjacent neighborhoods • Civic uses and a minimum 10,000 square feet of retail development Study Session Memo – Lutheran Legacy Campus Update December 15, 2025 Page 4 These new MU-LLC zoning regulations were approved by City Council in January 2025 and the zoning was applied to the Legacy Campus in April 2025. Charter Amendment Wheat Ridge is one of the few communities in Colorado that restricts building height in its City Charter. The charter limits new buildings in most areas of the city to 35 feet for residential structures and 50 feet for non-residential. This charter limit was originally established in 1983, so many existing buildings, including the 91-foot-tall former hospital, exceed this limit. The charter amendment that was approved by 67% of voters on November 5, 2024, lowers the maximum building height within the Campus for residential structures to 30 feet (2.5 stories) near the neighborhoods adjacent to the east, west and south of the Campus and limits buildings to 70 feet (5 stories) in the interior portion of the Campus. The charter amendment was critical to achieving many goals of the Master Plan because it: • Guarantees lower heights adjacent to existing neighborhoods, • Frees up land for public uses like open space, trails, plazas, and sidewalks, by... • Clustering taller buildings in the middle of the campus, • Allows a variety of housing types–detached and attached, to rent and to own, and • Ensures visual variety so not all building heights are the same height. Selection of Developer/Owner Intermountain Health used a comprehensive request for proposal process to gauge interest from the development community for the sale of the former Lutheran Medical Campus. After thoroughly evaluating ten distinct proposals, Intermountain narrowed the search down to three potential buyers. City staff interviewed the finalists and provided feedback to Intermountain. Ultimately, Intermountain finalized terms and conditions and went under contract to sell the property to E5X. On May 20, 2025, Intermountain Health announced that E5X Management, Inc. is under contract to purchase and redevelop the former Lutheran Medical Campus. E5X Management, Inc., headquartered in Centennial, Colorado, is a leading real estate development firm specializing in mixed-use, master-planned communities throughout the Denver metro area. As of the writing of this memo, the anticipated closing date is scheduled for December 10, 2025. Legacy Metropolitan District The City received a draft Service Plan from Intermountain Health for the Legacy Metropolitan District Nos. 1-12 on January 27, 2025, for the Legacy Campus. Metropolitan districts in Colorado are a common tool for financing the public infrastructure portion of development projects. All special districts in Colorado Study Session Memo – Lutheran Legacy Campus Update December 15, 2025 Page 5 organized under Title 32 of the Colorado Revised Statutes (C.R.S.) are required to file a service plan with the city council of the municipality in which the district is proposed. The purpose of the Districts will be to provide all or a portion of public improvements for the benefit of the residents and taxpayers located within the boundaries of the Districts, rather than those costs being borne by the city or its residents generally. Cost of public improvements is estimated at $100 million. The Service Plan would allow for a maximum debt of $110 million and a maximum debt mill levy of 67 mills for up to 40 years. Future property owners within the boundaries of the Districts would pay an additional 67 mills in property tax which equates to approximately $2,500 annually for a residential property valued at $600,000. City Council officially approved the Legacy Metropolitan District Service Plan and Intergovernmental Agreement on February 24, 2025. Lutheran Legacy Campus Urban Renewal Plan The Master Plan recommends that the City create an urban renewal area for the Legacy Campus to support the funding and financing of public amenities and infrastructure. The creation of an urban renewal area and plan authorizes the use of tax increment financing (TIF) for the removal of blight conditions. TIF uses net new tax (primarily property tax) generated by the development to fund public improvements that are needed and support the redevelopment. Renewal Wheat Ridge (RWR), the City’s urban renewal authority, contracted with Economic and Planning Systems (EPS) to complete a Conditions Survey to analyze conditions within the Plan Area to determine whether factors contributing to blight are present and whether the Plan Area may, therefore, be considered eligible as an urban renewal area under the provision of the Colorado Urban Renewal Law. It is the conclusion of this survey that there are physical conditions within the Plan Area sufficient to meet criteria in Colorado law as "blighting factors." Specifically, six of the possible eleven blight factors were found to be present. EPS created the Lutheran Legacy Campus Urban Renewal Plan with the purpose and vision of reducing, eliminating and preventing the spread of blight and to stimulate and catalyze growth and investment within the area boundaries. To accomplish this purpose the Plan is intended to promote local objectives expressed in adopted community plans such as the Lutheran Legacy Master Plan and the newly adopted City Plan. City Council approved the Lutheran Legacy Campus Urban Renewal Plan on September 22, 2025. Study Session Memo – Lutheran Legacy Campus Update December 15, 2025 Page 6 Public Finance Agreement Renewal Wheat Ridge (RWR) approved a Public Finance Agreement with the Legacy Community Authority (Legacy Metropolitan District) and High Road Ventures (E5X) on December 2, 2025, to pledge property tax increment revenue that RWR receives within the Plan Area to the Metropolitan District to assist in funding and financing public improvements. The Agreement, among other things, pledges TIF generated by the tax increment area to the Metropolitan District’s planned debt financing for the lessor of $75 million or 25 years based on a total project budget of $217 million including approximately $100 million in demolition and public infrastructure improvements. The Agreement allows RWR to potentially benefit financially from an expected future refinance of the Metropolitan District’s initial financing in an amount of $1 million, subject to adjustments for project cost savings or overruns, or more or less efficient refinancing outcomes. RWR’s total participation is the sum of three elements: 1. $1 million base participation obligation; 2. 20% of any cost saving or overrun; 3. 33.33% of any variation in the future refinance proceeds. This mechanism allows for the project to leverage the full TIF revenue potential to secure a portion of the financing necessary to undertake the project, while also providing for a potential financial outcome to RWR after the project’s completion when final projects cost, and future financing uncertainties are known. Entitlement Review and Approvals With zoning in place since April 2025, the next step in the redevelopment process is the entitlement and development review phase. This includes several required approvals such as a concept plan, site plans, subdivision plats, civil construction plans, demolition permits, right-of-way permits and building permits. Each document is reviewed by city staff for compliance with the MU-LLC zoning district, the adopted Master Plan, and all other applicable city regulations. Given the complexity of a 100-acre redevelopment site, the entitlement process typically takes at least a year and often longer, as applications are revised and resubmitted multiple times. To date, the city has received and reviewed the first two applications for the site: a concept plan and a subdivision plat. A concept plan is required in all mixed-use zone districts for phased developments or any site of ten acres or larger. Its purpose is to establish the overall development framework for the Campus before detailed plans are submitted. E5X submitted its concept plan earlier this year, which included a tree inventory, preliminary traffic analysis, and preliminary drainage analysis. City staff is currently reviewing the submittal for alignment with the underlying zoning and Master Plan. Study Session Memo – Lutheran Legacy Campus Update December 15, 2025 Page 7 Prior to submittal of the concept plan, a neighborhood meeting hosted by E5X was held on August 8, 2025, with both in-person and online engagement opportunities. All property owners and occupants within 1,000 feet of the site were notified prior to that meeting, and consistent with city requirements, an informational letter will be mailed to the same recipients prior to Concept Plan approval. The first subdivision plat for the property was recently approved. It is considered a preliminary plat because it serves the sole purpose of consolidating and reconfiguring the property for the purpose of the land sale. This first subdivision filing creates the 89- acre parcel E5X is purchasing, and the two lots retained by Intermountain for Collier hospice and the Foothills medical office building. Additional land use approvals will be required prior to vertical development, including: • Review of demolition permits and associated documents; • Review of civil construction plans for new streets, sidewalks, utilities, and drainage improvements; • Review of future subdivision plats establishing development blocks, easements, and lot lines; and • Review and approval of site plans for each phase of the project. The City’s What’s Up Wheat Ridge project page will be updated soon to coincide with the Concept Plan mailing and to provide detailed information about the demolition and deconstruction phase. New City Hall and Agreement for the Exchange of Land The Lutheran Legacy Campus Master Plan contemplated civic uses on the campus, and this idea was further supported by the city’s facility planning efforts. The City completed a Facilities Master Plan (FMP) in 2023 which determined the current municipal building at 29th and Wadsworth is obsolete and does not provide the adequate space and amenities required for the delivery of modern government programs and services. Recommendations from the FMP were presented to City Council at the February 5, 2024, study session. One recommendation from the FMP was to relocate all city functions currently located at the municipal building and leased office space to the Lutheran Legacy Campus. An architectural firm was hired in 2024 to explore the potential reuse of the Legacy Campus as a future home for the Wheat Ridge City Hall and Police Department. At a study session on June 16, 2025, Anderson Hallas Architects presented their recommendations regarding a new city hall facility at the Legacy Campus. A rough order of magnitude cost estimate of $80 million was developed for the preferred design. Council consensus was to continue pursuing a new city hall. Among the next steps Study Session Memo – Lutheran Legacy Campus Update December 15, 2025 Page 8 presented were to execute a development agreement with E5X to include the potential sale of the current city hall property. Staff has been working with E5X to determine a boundary for a potential civic parcel at the Legacy Campus and to negotiate a proposed Land Exchange Agreement. Both parcels are considered roughly equal in size (approximately 4.5 acres) and value. The intent of the land swap agreement is to secure a new civic center site on the Legacy Campus for the City; allow E5X to purchase and redevelop the existing civic center site in the future; and establish a structured, transparent pathway for advancing both projects including milestones, public processes, and protections. A Land Exchange Agreement has been drafted and includes the following key deal points: Due Diligence Periods • The City will have 180 days after E5X completes demolition of all buildings on the New Civic Center Site to conduct due diligence and an additional 120 days if a Phase II environmental study is required • E5X will have 180 days from the effective date of the Agreement to conduct due diligence of the Existing Civic Center Site and an additional 120 days if a Phase II environmental study is required • Either party may terminate the Agreement during the due diligence period if the results of the due diligence are unsatisfactory Closing Requirements • Closing will occur within 20 days of the end of the due diligence period • Conditions precedent to closing: o New plat for Legacy Campus in which New Civic Center Site is depicted as a legally subdivided parcel o City Council shall have approved an ordinance approving sale of the Existing Civic Center Site • The City will continue to operate out of the Existing Civic Center Site under a Lease Agreement for $1 per year during the transition Post-Closing Obligations • City o Responsible for designing, funding, and constructing the new City Hall • E5X o Must demolish exiting buildings on site o Construct general infrastructure on the larger Lutheran Campus Study Session Memo – Lutheran Legacy Campus Update December 15, 2025 Page 9 Reverter Rights • Both parcels are subject to a Reversion Period during which the properties revert back to their original owners if key milestones aren’t met, such as: o The City’s failure to commence design on the New Civic Center o The City’s failure to obtain financing for the New Civic Center o The City’s failure to commence construction on the New Civic Center o The Redeveloper’s failure to commence or complete demolition of the existing structures on the New Civic Center Site The purpose of this approach is two-fold; 1) to provide a reasonable due diligence period and timeline to close, and 2) to acknowledge through the tool of a reverter that several key milestones and approvals – by City Council and potentially by voters – are still required prior to achieving a New Civic Center. RECOMMENDATIONS: Staff recommends proceeding with entitlement reviews, finalize the land exchange for a new civic center, and actively monitor financing agreements to ensure redevelopment of the Lutheran Legacy Campus delivers on community goals while protecting City interests. Advance Entitlement and Development Review • Continue reviewing and processing E5X’s Concept Plan and subsequent applications (site plans, plats, demolition permits, civil construction plans). • Ensure all approvals align with the MU-LLC zoning district and the adopted Master Plan. • Maintain transparency through public notifications and updates on the What’s Up Wheat Ridge project page. Support Civic Center Relocation • Pursue the Land Exchange Agreement with E5X to secure a 4.5-acre parcel on the Legacy Campus for a new City Hall and Police Department. • Approve ordinance authorizing sale of the existing Civic Center site, contingent on due diligence and reverter protections. • Begin planning, financing, and design work for the new civic facility to meet modern service delivery needs. ATTACHMENTS: 1. Lutheran Legacy Campus Concept Plan Narrative Summary 2. E5X Lutheran Legacy Campus Presentation | 200 Kalamath St. Denver, CO 80223 | (303) 531-4905 | www.pcsgroupco.com Lauren Mikulak, AICP Community Development Director Phone: 303-235-2845 PCS Group, on behalf of E5X Management, is please to present this narrative as required for the Concept plan submittal. Welcome to LEGACY The primary goal of the Conceptual Planning efforts, is to ensure compliance with the existing Master Plan and Zoning that established a development framework to guide the future planning and development on the Lutheran Campus. The Development Framework is intended to communicate key development parameters and considerations to ensure that any future redevelopment of the Campus reflects the values and priorities expressed by the community throughout the planning process. A Once in a Generation Opportunity It is extremely rare to have an opportunity to re-envision a property of this scale, especially with such a central location. And it is even less likely in a community like Wheat Ridge that is largely built out. SCL Health will maintain its hospice program and the Foothills medical office building at the existing campus, the remainder of the property is being conceptually planned utilizing the Lutheran Legacy Campus Master Plan as the guiding document for decision making. Lutheran LEGACY Concept Plan The Conceptual Planning has been heavily influenced by the community involvement through the City of Wheat Ridge Master Planning efforts. In general, lower density housing with a maximum height of 30’ is along the perimeter of the Campus. Internal to the property we anticipate a mix of higher density residential uses. The Concept Plan highlights the preservation of the existing Chapel and Blue House. The initial Park and Open Space planning ensures that the overall campus will meet the minimum 20% of the property as required in the City of Wheat Ridge Master Plan. ATTACHMENT 1 | 200 Kalamath St. Denver, CO 80223 | (303) 531-4905 | www.pcsgroupco.com | 2 Character of Development The purpose of this Concept Plan proposal is to provide a general/preliminary outline for the redevelopment of the Lutheran Medical Campus. Details regarding the final location, specific form and design of buildings and parking areas have been intentionally omitted in the interest of providing flexibility in the future design intent. Requirements of the future development related to access, drainage, open space and zoning are shown to establish the overall concepts, land use and circulation for the development. The overall concept for the project is a comprehensive and thoughtful urban development plan focused on creating a vibrant community. Key elements: 1. Residential variety: ensure a mix of housing types, such as single-unit homes, townhouses, and multi-unit dwellings to accommodate different demographics, including families, seniors, and young professionals. 2. Civic area: incorporate a civic area that can serve as a hub for community events, local government services, and social gatherings. 3. Historic preservation: preserve the chapel, blue house and tb tent historic structures, integrating them into the new development to maintain the area’s heritage. These structures can be re-purposed for a number of uses including community use, retail, or potentially even educational purposes, or similar. 4. Public open spaces: create well-planned parks and green spaces areas that encourage outdoor activities and community interaction. Include features like playgrounds, picnic areas, and areas for social gathering. 5. Parks and trails: develop a network of walking and biking trails that connect residential areas with parks, the civic area, and other amenities. This promotes an active lifestyle and enhances accessibility throughout the community. 6. Pedestrian & bicycle-friendly design: ensure that streetscapes are designed for pedestrians, with sidewalks, safe crossings, and traffic calming measures. Incorporate landscaping, benches, and public art to create an inviting atmosphere. 7. Sustainable practices: integrate eco-friendly design principles, such as green building standards, rain gardens, and the use of native plants, to enhance environmental sustainability. 8. Mixed-use development: include a minimum of 10,000 square feet to accommodate sales tax generating uses and neighborhood-serving uses such as any neighborhood-serving retail, restaurant, or personal services use approved by the community development director. These elements will help create a well-rounded and desirable community that emphasizes quality of life while preserving historical significance. We look forward to working with the City of Wheat Ridge on this exciting and important addition to the community. Sincerely, John Prestwich, President, RLA John Prestwich Mixed-Use Lutheran Legacy Campus General Information ATTACHMENT 2 .02Illustrative Concept Plan .03Illustrative Open Space .04Charter Height Limit .05Entry from 38th Avenue .06Entry from 38th Avenue .07Entry from 38th Avenue .08Secondary Entry Concept –complimentary to the existing clock tower .09Blue House –reimagined as a fine dining restaurant .10Blue House –reimagined as a fine dining restaurant .11Blue House – reimagined as a fine dining restaurant .12Blue House – new patio seating .13Entry to the Civic Area –Holiday Tree location and fire pits .14Restored Chapel with a brunch restaurant and speak easy .14Restored Chapel with a brunch restaurant and speak easy .15Restored Chapel with a brunch restaurant and speak easy .16Civic Area –splash pad play area .17Civic Area –Summer Play/Game Lawn, Winter Ice Rink .18Civic Area –Summer Play/Game Lawn, Winter Ice Rink .19Every 3rd Hour –Coffee, Grab and Go, Lunch, Sundries .20Legacy Memorial Plaza with brick pavers, Tuberculous Tent .21Entry to the Civic Area –Holiday Tree location .22Dudley Street – low brick wall and open fence with columns .23Dudley Park – park features a custom fox play structure .24Rocky Mountain Trail – part of the trail system through the campus .25Rocky Mountain Park – along the trail is a park with plazas, seating, pond, community connections, and play areas. Thanks. For Watching, Discussion