The URL can be used to link to this page

Home My WebLink AboutSeniors' Resource CenterI I* V, City of ��Wh6atR,�dge c,, c _j CO MM UNITY DEVELOPMENT .. 1- .......... City of Wheat Ridge Municipal Building 7500 W. 29 Ave. Wheat Ridge, CO 80033-8001 P: 301235.2846 F: 303.235,2857 August 17, 2010 John Zabawa Seniors' Resource Center 3227 Chase St. Wheat Ridge, CO 80212 Dear Mr. Zabawa: Please call if you have any questions. Sincerely Kenneth P. Johnstor Community Development Director Enclosure M wwwxi.wheatridge.co.us Na-MEM 4 Public Hearing considering: (1) a motion establishing a Business Development Zone to be known as the Senior Resource Center (SRC) Business Development Zone and (2) approving an Agreement to participate in said Zone in conjunction therewith. "T WIN Substitute motion • Mr. De Mott to approve an Agreement to Participate with the Seniors' Resource Center under the terms of the City's Business Development Zone Program and set the amount of the refund of the eligible fees and taxes at 100%; seconded by Mrs. Sang; carried 6-2 with Council Members Berry and Reinhart voting No.' 5. Resolution 38-2010 — approving a 28-lot Consolidation Plat on property zoned R-1 located at 3227 Chase §treet. (Case No. WS-1 0-0 1 /Seniors' Resource Center) AGREEINMENTTO PARTICIPATE IN THE CITY OF Win-.,q Rjwx BUSINEss DEVELOPNIFNT ZONE PROGRAM This Agreement to Participate in the City of Wheat Ridge Business Development Zone P1 4 (dais "Agyreement is made and entered into as of the li day of 2010, by and between SENIORS* RESOURCE CENTER, 3227 Chase treet, - C ; olorado 80212, hereinafter referred to as the *'Owner and the CITY OF WHEAT RIDGE, COLORADO, 7500 W. 29"' Avenue, Wheat Ridge, Colorado 80033 hereinafter referred to as the "City," collectively the - Parties," and each individually, as a WHEREAS, the City has adopted as a portion of the Wheat Ridge Code of Laws ("Code") Chapter 22, Article 1, Division 5, - Business Development Zone" (the - Program"), to encourage, in part, continued development and expansion of opportunities for employment in the private sector in the City; and WHEREAS, Owner has applied to participate in the Program; and WHEREAS, Owner is the owner and operator of real property and improvements thereon within the City and known as the "Seniors' Resource Center,*' which center provides services to area senior citizens including, but not limited to adult day and respite care, transportation services and job training, and WHEREAS, pursuant to Code See. 22-86 (b), the City Council has designated the real property owned by the Seniors' Resource Center as a - Wheat Ridge Business Development Zone"; and WHEREAS, Owner plans to construct additional facilities at the Seniors' Resource Center, and following said construction, it anticipates the ability to oftcr increased services to area senior citizens and WIJEREAS, while such increased services will not directly impact City revenue, the indirect benefits of having additional visitors to the area, providing valuable outlets and training for area senior citizens and providing for additional employment opportunities for those working for the Seniors' Resource Center (both during construction and as employees of the Center) are anticipated to be beneficial to the City; and WHEREAS, the Program allows the City to provide for the sharing of certain categories of fees, taxes and other business developirient-related charges for new development within the business development district ("Eligible City Fees, Charges and Taxes" as defined in Code Sec. 22-87 (2)) to the extent allowed by an agreement with a business owner, and WHEREAS, cost-sharing at the rate prescribed herein will serve to aid the expansion of the Seniors* Resource Center in that it will alleviate a portion of the costs associated with the expansion. NOW, THEREFORE, in consideration of the foregoing, and the covenants, promises, and agreements of each of the Parties hereto, to be kept and prefornied by cacti ol"thern, the Parties agree as follows: I . Recitals. The Recitals set forth above are incorporatcd in this Agreement by reference The terru, of this Agreement shall commence on September 1, 2010 and shall terminate August 31, 201 (the "Term"), Notwithstanding the foregoing, it is all express provision of this Agreement that this Agreement shall expire and be of no further force and effect upon the occurrence of the earlier to occur of: (1) expiration of the Term or (2) payment of the maximum amount to be shared as set forth in Paragraph 7 (whether or not the Term has expired), or (3) determination by the City of Owner's default, as provided in Paragraphs 13 or 15. 3. The Proiect. The project proposed by the Owner through which it desires to participate in the Program consists of the following, generally: acquisition of new real property upon which to expand services provided by Owner., new building construction of approximately 17,000 square feet, such square footage to expand the size of Owner's adult day program, to allow for the creation of a new community meeting room and to expand Owner's available services by approximately 3,0%. In addition, Owner's existing facilities shall be remodeled. The foregoing shall be collectively referred to herein as the "Project," and is more fully described below at Paragraphs 4 and 8. 4. Representations of Owner. Pursuant to Code Sec. 22-94, Owner hereby represents to the City the following: a. lniproyeanents 'ustif in xPr ecta))r(Lyal. 9�� __ i. Revitalization of land. Once the Project is completed, it is anticipated to be all attractive 17,000 square foot addition to the neighborhood which will complement the architecture of the Owner*s, existing facilities. Further, with the increased space, Owner will be able to expand the services it offers to the community. ii. Storm water detention, The engineers and architects for the Project have developed a unique solution to storm water detention which has been approved by the City. Owner shall build a detention pond on the north side of the existing property and wi surround the same with approximately three feet (3 °) of berm. iii. Estimated cost. The cost for the entire Project including the improvements described above is estimated to be $8.7 million. b. Lx ected incremental future tax revenues. Owner operates a non-profit organization. Any incremental future sales and use tax revenue will be indirectly, not directly generate(] by N this Project. Bencfits to the community which may generate future sales and use tax indirectly have been identified by the Owner as tblIoNvs: 1. Short positive impact during construction. Prior to the completion of the Project, the construction period is prQJected to last ten (10) months. During that time, the general contractor and estimated thirty (10) subcontractors will employ approximately 160 individuals. The estimated construction payroll for completion cif the Project is $2.4 million. ii. Long-term positive impact by addition of staff. With increased facilities and ability to increase set Owner will employ more permanent staff. Specifically, it is estimated that permanent staff will be added both to Owner's headquarters and to its volunteer program. It is anticipated that at the completion of' the Project, fifteen (15) full -tinge employees will be hired, representing all additional payroll increase of $324,470.00. iii, Long-term positive impact through ability to provide additional services. Upon completion of the Project, it is estimated that Owner will have capacity to serve thirty percent (30%) more clients over the following five (5) years. Specifically in the City, Owner will be able to provide senior services to approximately 2,340 City seniors, which represents increased service to 540 additional seniors than can currently be served. The goal of the programming is to allow senior citizens to remain in the community longer. i An indirect benefit will be continued shopping by the seniors and their friends and family in the area, likely contributing to the City's tax base. V. A detailed list of anticipated benefits, is f0tind in the letter dated June 11, 2010 Owner*s president., John Zabawa, attached hereto as Exhibit A and fully incorporated by this reference as additional representation of Owner, upon which the City relies. 5. Personal agreement; non-transferable; no third party beneficiaries The cost-sharing of F.�ligible City Fees, Charges and Taxes as approved herein shall constitute a personal agreement between the City and Owner. The terms of this Agreement do riot run with the land. The obligations, benefits and/or provisions of this Agreement may not be assigned in whole or in any part wlth0Ut the express authorization of the City Council. No third party shall be entitled to rely upon or enforce any provision hereof, 6. Agreement not to constitute debt or obligation of the City Nothing herein shall be construed to Constitute a debt or obligation of the City. Notwithstanding any other provision of this Agreement to the contrary, the Parties understand and acknowledge that the City is subject to Article X, § 20 of the Colorado Constitution ("TABOR"). This Agreement does riot create a rritilti-fiscal year direct or indirect debt or obligation within the meaning of TABOR and, therefore, notwithstanding anything in this Agreement to the contrary, all payment obligations of the City are expressly dependent and I conditioned upon the continuing availability of hands beyond the terra of the City's current fiscal period ending upon the next Succeeding December 31. Financial obligations of the City payable after the Current fiscal year are contingent upon funds for that purpose being appropriated, budgeted, and otherwise made available in accordance with ordinances and resolutions of the City and other applicable law. 7. Cost-sharing a, Estimated El ,it , �iit�Le_City Leg narges, and *Taxes. The following are estimates of the Eligible City Fees, Charges and Taxes which are the subJect of the cost-sharing herein. i. Use tax: $67,979.92; ii. Building permit and plan review fiees: $33,799.76 iii. Planning, review fees: $500; iv. Total estimated Eligible City Fees, Charges and Taxes: $102,279.48. b, f � j h1crernental Future ales, 'Tax Revenue,. The Expected Incremental Future Sales and Use Tax Revenue, as such term is defined in Code Sec. 22-87 (2), is S 0.00 c. Cost - sharing Pursuant to Code Sec. 22-88, cost-sharing of the Eligible City Fees, Charges and Taxes may be granted up to the Expected Incrernent'll Future Sales and Use Tax Revenue, However, it is anticipated that the Incremental Sales and Use Tax Revenue received from the Project is currently projected to be W00. Nonvithstanding the fi)re,going, and in reliance upon the representation of Owner of the benefits to the City of the PrQlect, the City and Owner agree to the cost-sharing for tile Eligible City Fees, Charges and Taxes as follows: 100% of the Eligible City Fees, Charges and Taxes shall be due and paid to the City by Owner. Upon receipt thereof, the City shall refund _ % of such Eligible City Fees, Charges and Taxes back to tile Owner in 12 equal monthly installments over the 12 month Tern'l, described in Paragraph 2 herein. In no event shall the City be obligated to refund more than ____% of eligible City Fees, Charges and Taxes received by it. 8. Legal challenge In the event of legal challenge to the Program as applied to Owner, any costs scheduled Z:� to be shared-back to Owner shall be escrowed until resolution of the dispute. 9. Waiver of Code reguirements To the extent any requirements of Code Sees, 22-85 through 22-96 have been waived, Such waiver has occurred pursuant to Code Sec. 22-93 (c) whereby the City Council has found 0 by a -'/, majority vote that such waiver is in the public's interest and will provide as substantial benefit to the City. 10. No joint venture Pursuant to Code Sec. 22-95, nothing herein shall be construed to create a joint venture between the City and Owner. Notwithstanding any provision hereof, the City shall never be a joint venture in any private entity or activity which participates in the Program, and the City shall never be liable or responsible for any debt or obligation of any participant, including the Owner, in the Program, 11. Use of funds Pursuant to Code Sec. 22-89, Owner expressly acknowledges and agrees that any Eligible City Fees, Charges and Taxes refunded to the Owner under this Agreement, up to the amount agreed upon by the City Council pursuant to this Agreement may only be used for the purpose of the Project, as described in Paragraph 12, on Owner's Property within the underlying business development zone. 12. Uses entimerated Pursuant to Code Sec, 22-90, the uses to which the Eligible City Fees, Charges and Taxes may be put by the Owner shall be strictly limited to those which are approved by the City Council and which relate directly to the Project within the City, which Project is anticipated to indirectly generate more rriunicipal sales and use tax revenues for the City in the future. Uses hereby expressly approved by City Council are as follows: - .17,000sqitai - Reino(leling of the Seniors' Resource Center located in the City: - Cooi Gire Xlancrgetnenl S"ci-vices: providing assessments. individual are plans, service delivery, emergency assistance, coordination of community resources and other programs, and is the entry point for victims* assistance; - A(lult Dqy atul Resl,)ite Care� providing services for seniors and adults with dcvclopmental disabilities and their families at five Jiff - crcnt sites; - 71'Clnvlaortation,5(, es: providing door-to-door ricks to doctors, shopping, COMI centers, meal sites and appointments; - In-Home Cen-e Set providing non-inedical services such as cooking, house cleaning, feeding, shopping, laundry, and companionship; - P'olunleer.5ei-vices: providing adult volunteers to assist seniors in day-to-day needs as well as information on personal safety; and /or - Job Thfining,Services: providing on-the-job training and support fbr finding permanent employment for older adults in the job market. 13, No Covenant to constrtict or too perate The intent of this Agreement is to provide for Owner's parti in the Program, in the event that Owner completes the Project. Notwithstanding any provision in this Agreement to I the contrary, Owner shall have no obligation under this Agreement to complete the Project. In 9 the event Owner fails to complete the PrQject, this Agrcenient may be tern at the option of' the City. 14. Remedies The Owner waives any constitutional claims against the City arising out of a breach of this Agreement. The Owner's remedies against the City under this Agreement are limited to breach of contract claims. In no event shall the City be liable for any form of damages, including without lin exemplary, punitive or consequential damages, including economic damages and lost profits. 15. Termination In the event Owner fails to comply with one or more of the terms of this Agreement, City may, in its sole discretion, terminate this Agreement. 16. Indemnification `ro the fullest extent permitted by law, Owner agrees to indemnify and hold the City harmless from any damage, liability or cost (including reasonable attorneys' fees and cost of defense) to the extent caused by the Owner's negligent acts, errors or omissions in the perl'orniance this Agreement and those of its sub-contractors, sub-consultants or anyone for whom the Owner is legally liable. To the extent permitted by the Colorado Constitution and statutes, the City agrees to indemnify and hold the Owner harmless from any damage, liability or cost (including reasonable attorneys' fees and costs of def'ense) to the extent caused by the City's negligent acts, errors or omissions arising fron this Agreement. These defense and indemnification obligations shall survive the expiration or termination of this Agreement. 'rhe Parties acknowledge that the provisions of this Paragraph are not intended to waive or alter any of the rights and defenses afforded to the City 'ity under the common law, the Colorado Governmental Immunity Act, C.R.S. §§ ?4 -l0 -101 et. seq. or any other law, 17. Severability If any part, term or provision of this Agreement or the Program is held by a court of competent jurisdiction to be illegal or in conflict with any law of the State of Colorado, the validity of the remaining portions or provisions shall not be affected, the rights and obligations of the Parties shall be construed and enforced as if the Agreement did not, contain the particular part, term or provision field to be invalid, and the Parties shall cooperate to cure any legal defects in the Agreement or the Program. Should the sharing of Eligible City Fees, Charges and Taxes pursuant to this Agreement be Judicially adjudged illegal, invalid or unenforceable under the present or future laws effective during the Term of this Agreement by a court of competent jurisdiction in a final, non - appealable judgment,, the Parties shall utilize their best, good filith efforts forts to restructure this Agreement or enter into a new a g consistent with the purposes of' this Agreement. Should the Parties be unsuccessful in their efforts, the Agreement shall terminate without penalty or recourse to either Party. 18. Governing law; venue I The laws of the State of Colorado shall govern the validity, performance and enforcement of this Agreement. Should either Party institute legal suit or action for enforcement of any obligation contained herein, it is agreed that venue of such suit or action shall be proper and exclusive in the district court 1'(,)r Jefferson County, Colorado. 19. Notices All notices require(] or permitted under this Agreement shall be in writing and shall be hand delivered or sent by certified mail, return receipt requested, postage prepaid, to be addressed to the Parties set forth below. All notices so given shall be considered effective upon the earlier of the actual receipt or seventy-two (72) hours after deposit in the (.,lined States Mail with the proper address. Either Party by notice so given may change the address to which future notices shall be sent: Notice to the City City Manager City of Wheat Ridge 7500 W. 29"' Ave. Wheat Ridge, CO 80033 Copy to: City Attorney City of Wheat Ridge 7500 W. 29"' Ave. Wheat Ridge, CO 80033 Notice to the Owner: John Zabawa Seniors' Resource Center 3227 Chase Street Denver, CO 80212 20, Entire agreement — amendments [INSERT (.ONTAC'F] Address This Agreement embodies the whole agreement of the Parties. There are no promises, terms, conditions, or obligations other than those contained herein, and this Agreement shall supersede all previous cornmu ni cations, representations or agreements, either verbal or written, between the Parties hereto. This Agreement may be amended only by written agreement between the Owner and the City acting pursuant to City Council authorization, 21. Effective date This Agreement shall be effective and binding upon the Parties upon the (late first set forth above. W IN WITNESS WHEREOF, Owncr and City have cacti caused this Agreement to be executed by their authorized representatives, State of Colorado Ss. County of Jefferson OWNER SENIORS' RESOURCE ("ENTER B V Nat ohn Zabawa Tit] rcsidcnt'CEO The foregoing Agreement was acknowledged before nic this/Oliay cat `44 2010, by John Zabawa as President of Seniors' Resource Center. CITY OF WHEA RIDGE ATT - T: Name: IVMichacl w Title: City Clerk Im L A I ;PmNo By: ' -*' Name: Title: , AtmweecVas to Form m d E. Dahl, City EXH I BIT A Zabawa Lettcr to Young dated June 1 20 1 0 LattaetLe0j, to IM S E N 10 RS' R E S 0 L) RCI E C E NTE R Buddmg i Foundma)n Tot Independent P var ,� Sit (e 19� Date' June I I , 20 To G, Randolph Young City Manager City of Wheat Ridge 7500 W 29"' Ave Wheat Ridge, CO 80033-80(J 1 Rl--',: Business Development Zone --Request to abate building permit fees and building use tax. Seniors' Resource Center (SRC) is in the final fund raising stages of Phase I of Our Capital Campaign. We are hoping to begin construction of a 17,000 square foot expansion of our Wheat Ridge Headquarters. With this critical abatement support from the City of Wheat Ridge and the City ('0LILICil, we will begin this project this summer and provide a positive economic impact for Wheat Ridge and Jefferson County lot years to come. We would like to provide some additional information about Seniors' Resource Center, this capital pro and address any concerns that the City and City Council may have in reducing the building permit fees and building use tax. First, here is all overview of the entire two phase $8.7 million dollar project. The dream is to dramatically increase the size of our headquarters and our capacity to serve the general public, This dream urst proved its viability in 2006, when, at the request of SRC, the Jefferson County Cou donated Our current site, the Columbia Heights Elementary School and the Wheat Ridge library. This proJect will begin with the construction of a new building on the adjacent property and then move into Phase 2 -- the remodel Our existing headquarters. Phase I involves the property acquisition and new building construction, with a goal of 57,600,000. The new building will provide 17,000 square feet of new construction, and will be the expanded lionne for Out Adult Day Program, provide room for other program growth and create a new community rricetingroorn. ]'his new building doubles the size Of OUrcurrent site and offers SRC the ability to expand all services by 30%. The Capital Campaign is intended to help SRC keep pace AA:ith the rapidly growing Denver metro area senior population by constructing a new building �khere more seniors can receive state-of-the art services. Once the new building is complete, the remodeling of our current main facility at a cost of S1.1 million will begin Phase 2. This remodel will give us the ability to build capacity in all Our other programs. like care management, transportation, volunteer services and in-home care. SRC is very, N cry close to the end of tile fundraising phase for Phase 1. We have only S279,968 left to complete this first nulestone, We are at $7,320,032, or 96% of our Phase I goal ot'$7,600,000. 3227 CHASE SIREEI + DENVER, COLORADO 802 12 * f303s 238-8151 # FAX 30 3) 238-8497 www,SR('Aging.org The project remains on track at its original cost. Any increase in total project expenses has been offset by the value engineering process. Through our value engineering process, we have re-bid several major components of the project and have realized a $221,000 savings in construction costs. There have been no revisions to the original total cost of the project. We do expect costs overall to remain consistent throughout the project. Here is a list of the benefits this project will provide to the city and surrounding community: 1. Expand employment opportunities - Our project will have a substantial impact on the City in several ways, (1) there will be a short terin positive impact during the construction phase; (2) there will be a long term positive impact with the permanent addition of SRC staff, and (3) this expansion will increase our capacity to provide more direct services, including our job training program. The construction period is projected for 10 months. During this time frame, the General Contractor, DRG Construction and their 30 subcontractors, will employ 160 individuals, We have estimated their total construction payroll for people working on this Wheat Ridge project to be $2.4 million or 65% of the total project cost. There will also be a permanent growth in SRC Wheat Ridge staff. Our program services are located at six unique sites. Two of these sites are located in Wheat Ridge, one at 3227 Chase St, which serves as our organizational headquarters, and one at 3812 Ammons St., which houses our Woodchuck volunteer program and serves as the organization's center for our Minor Home Repair program. The program builds wheelchair ramps, installs grab bars and provides seniors with other safety installations which Delp them remain in the community longer. You may be Surprised to learn just how big the total payroll for SRC is -- $6,355,335 -- which includes salaries, benefits and taxes. We have a total 71 full time employees and 230 part time employees at these six locations. The Wheat Ridge location is our largest site and serves as headquarters for all of our community programs as well as all of our Administrative and Development staff. Our total payroll for Wheat Ridge in 2009 was $4,088,334, which represents 189 full time and part time employees. This site also receives additional foot traffic daily of 65 clients, volunteers, community partners, donors and vendors. After the new building is completed in early 2011, we will expand our staff by a total of 15 FTE's, which represents an additional increase to the payroll of $324,470. 2. Redevelopment and revitalization of vacant land and special attention to storm water management. Shortly after the donation of Columbia Height by the County, we acquired the vacant lot just north of this project at 3281 Chase Street and our "mini land bank" project had sufficient land to begin this project. (You may remember the property at 3281 Chase as a failed attempt of an investor to build a duplex). Currently, we are also in serious negotiations with Billy Macintyre - who owns the property at 3283 Chase Street, just north of this lot and we could make another dramatic improvement to our area. Once the project is built, it will be a very attractive addition to the neighborhood and will complement the architecture of our current building. Storm Water Detention: The engineers and architects for the new project have also developed a unique solution to storm water detention. SRC architects and civil engineers have collaborated to come up with a unique plan that has been approved by the city. The plan is to build a detention pond on the north side of the property and surround it by 3 feet of birm. 3. Our new building and the increased organizational capacity will create direct spillover benefits to the city in these ways: Increased physical capacity of SRC will allow us to serve more seniors in Wheat Ridge and Jefferson County, and provide the support they need to remain in our community and avoid premature institutionalization. Overall, in 2009, SRC provided direct services to more than 18,000 seniors and individuals with disabilities, This total included individuals from our seven major program areas. Of the total, about 10% or 1,800 individuals live in Wheat Ridge. We have estimated that after the building is expanded we will have the capacity to serve 30% more clients over the next five years. This increase in capacity will mean SRC can provide ongoing support of 2,340 Wheat Ridge seniors per year in Wheat Ridge, rather than the current 1,800. This expansion project will also double the capacity of our Wheat Ridge Adult Day program and we expect increased traffic in our facility of caregiver family members, and new clients who visit the center. These clients will be stopping at Wheat Ridge businesses for food, gas and other purchases, The main function of SRC is to provide community based service for seniors and adults with disabilities so that individuals will remain in their homes for as long as possible. Besides being what everyone wants, and being more economical than instructional care, individuals will continue to shop and spend money in Wheat Ridge living in the community, which helps to maintain the city's tax base, 4. How will these projects provide joint benefit to the community? In addition to increasing the services available to Wheat Ridge residents we estimate an increase in all our community programs. Here is a list of the direct services SRC provides: - Coordinated Care Management Services-provides assessments, individual care plans, service delivery, emergency assistance, coordination of community resources and SRC programs, and is the entry point for victims' assistance; 8,018 individuals were served in 2009, and 150 individuals received assistance through the emergency and energy assistance funds at SRC; - Adult D4(v and Respite Care-provides services for seniors and adults with developmental disabilities and their families at five different sites; 329 individuals were served in 2009; - Transportation Services-provides door-to-door rides to doctors, shopping, community centers, meat sites and appointments; 138,395 one-way rides were provided in 2009; This includes the additional rides currently being funded by the City's CDBG program. - lit-flome Care Services-provides non - medical services such as cooking, house cleaning, feeding, shopping, laundry, and companionship; 86,152 hours of service were provided in 2009; - Volunteer Services - provides adult volunteers to assist seniors in day-to-day needs as well as inforrnation on personal safety; 1,421 volunteers worked with SRC in 2009 and contributed 198,952 hours of volunteer service to the community through the Agency Volunteer Program and Retired Senior Volunteer Program (RSVP) (the equivalent of 83 full-time employees), assisting 1,532 seniors; - Job Training Services-provides on-the-job training and support for finding permanent employment for older adults in today's challenging job market, in 2009, 121 seniors who were at or below 125% of the Federal Poverty Level participated in this program to help them return to the vIorld'orce, andS1?C- Evergreen provides the same comprehensive services to seniors fit the rural areas surrounding Denver and in 2009 provided services to approximately 4,528 seniors from four foothills counties. III addition to a growing relationship with the ('try, Police Department. Fire Department and Water District -- SRC partners and collaborates with more than 200 local, state and federal agencies In Colorado -- SRC is able to provide expanded service options above and beyond Our extensive programming within the organization because of these partnerships. These strong collaborations are just one of the reasons why SRC is a leader for seniors in the community. One of the key features of the new building will be an 810 square foot conference room, which will accommodate Lip to 50 people. Our plans are to make this conference room available to other organizations for free during normal business hours and for a small operational cost after hours, 5. 'Fhe Funds provided from this abatement request will go directly to this project We have attached a Campaign Status Report which provides greater detail about where the various sources of funds have come from so far. Here is a summary: Individuals $1,1 6,612 Corporations S 144,320 Grants $1,234,869 City offteat Ridge (June 2008) S 50,000 In-kind Support $2,461,020 Organizational funds S 243,211 Permanent Loan $2M0,000 Total Funds Committed as of June 2010 57,320,033 We will use these funds frorn this granted abatement on two specific construction area's #1 the Storm Water Retention Plan and the 42 the community kitchen. 6. The Project Cost Estimate A, detailed Worksheet is attached. The total construction cost is $3,776,651. This is based on the detailed list from our General Contractor DRG Construction, We are very pleased the City and City Council has been such a strong partner and advocate for SRC. As the 604. population ages and doubles in size by the year 2020, we know this aging demographic will continue to put pressure on SRC to keep up with the demand — and we would like You to be able to Delp LIS continue to provide more economical community Services versus more costly nursing home placements which are often that alternative. Thank You for considering this request. Sincerely, Jo , hil" , Zabawa Pregident/CEO Seniors' Resource Center Chase Street Capital Campaign SPECIAL DRAFT TO COMPLETE PHASE 1! I IT, Phase 1 $7,600,000 Tow Annual Appeals (5.1) $50,397 $16,000 Unrestricted Donations $10,266.00 Special Event (5.2) $171,068 $31,375 Other Special Events (5.3) $59,448 $3,122.00 $66,800 Leadership, Vol, staff (5.4) $137,202 $5,650,00 $10,000 Major Gifts (5.6) $439,654 $26,643,00 $160,000 Bequests (5.6) $328,844 $10,000 Corporation and Vendor (5.7) $144,320 $27,173.39 $20,000 Grants (5.8) $1,284,869 $1,100.00 $60,000 In-kind support (5.9) $104,055 $11,625,00 $225,000 In-kind Chase St Building $2,185,000 Value Engineering $171,965 Organizational Funds (5.11) $243,211 $8,146,00 Assumes a Permanent Loan $2,000,000 (Approved 9-2-0911) $579,175 I IT, Phase 1 $7,600,000 ----------- ---------- ----------------- -- ------ ------------- 1 General Conditions 390,680 Sitework and Demolition 315,361 Concrete 132,198 4 Masonry 121,175 5 Metals 145,357 6 Carpentry 352,769 7 Moisture Protection 177,860 8 Doors and Windows 279,250 9 Finishes 288,455 10 Specialties 27,165 11 Euipment 163,093 12 Furnishings 7,790 13 Special Construction 0 14 Conveying Equipment 135,325 15 Mechanical 469,769 16 Electrical 319,211 17 Burden and Taxes 136,818 18 Contractors Contingency 173,114 19 Contractors Fee 103,868 0 Band Costs 37,393 21 Total Contractor Direct Building Cost 3,776,651 LI-I Public Hearing considering: (1) a motion establishing a Business Development Zone to be known as the Senior Resource Center (SRC) Business Development Zone and (2) approving an Agreement to participate in said Zone in conjunction therewith, John Zebaba president • the SRC, spoke in favor of the designation of the area as a Business Development Zone and the extensive investments made to the project and the City of Wheat Ridge. C'1 wry - IrT#T 7177771711 arnollm o VesTialver Tor Tne Business Development Zone. Motion by Ms. Berry to designate Lot 1, Block 1, Senior Resource Center Subdivision Plat a Business Development Zone pursuant to Code Section 22, Division 5; seconded by Mr. Reinhart; carried 8-0. Motion by Ms. Berry to approve an Agreement to Participate with the Seniors' Resource Center under the terms of the City's Business Development Zone Program and set the amount of the refund of the eligible fees and taxes at 50 percent; seconded by Mr. Reinhart; Substitute motion by Mr. DeMott to approve an Agreement to Participate with the Seniors' Resource Center under the terms • the City's Business Development Zone Program and set the amount of the refund of the eligible fees i+#' taxes at 100%; seconded by Mrs. Sang; carried 6-2 with Council Members Berry and Reinhart voting No. Substitute Motion carried 6-2 with Council Members Berry and Reinhart voting No. m V:\Fomis\C,Al-'template Seniors' Resource Center Business Development Zone Program August 9, 2010 Page 2 [W N to] 1 1 E1198 uiMMI FINANCIAL IMPACT: The construction cost of $3.8 million would generate $101,779.48 in taxes and buildin BACKGROUND: Code of Laws Chapter 22, Article 1, Division 5, establishes an economic development tool known as the Business Development Zone Program (BDZP). The goal of the program is to encourage the development of private sector jobs, revitalize deteriorating areas of the City and encourage the development, redevelopment and expansion of businesses within the City. City 6ouncil exercising its legislative discretion to approve an agreement establishing what portion of fees and taxes will be refunded to the owner. Section 22-93 establishes that the City Council shall consider such an application at a public hearing after consideration of 5 criteria, which are discussed later in this report. amount of expected incremental future sales and use tax revenue which can reasonably ► anticipated to be derived by the City through the expanded or new tax generating business; The SRC will not directly generate future sales and use tax. However, as discussed in the application, the expansion does have the potential to generate spillover sales and use tax increases based on the following: construction Seniors' Resource Center Business Development one Pro grarn August 9, 2010 Page 3 The agreement establishes that a total of $102,279.48 of fees and taxes are eligible to be refunded. However, the agreement does not establish what percentage of those fees should be refunded. The City will expend staff time conducting plan review and inspections on this Seniors' Resource Center Business Development Zone Program August 9, 201 Page 4 * 25% fee refund = $25,569.87 * 50% fee refund — $51,139.74 refund = $76,709-61 * 100% fee refund = $102,279.48 RECOMMENDED MOTION: Motion #1. I move to designate Lot I , Block 1, Seniors' Resource Center Subdivision Plat a Busine Development Zone pursuant to Code Section 22, Division Motion #2. "I move to approve an Agreement to Participate with the Seniors' Resource Center under the terms • the City's Business Development Zone Program and set the amount of the refund of the eligible fees and taxes at _ percent." am I move to deny t h e Seniors' Resource Center Business Development Zone Program for the following reason(s) REPORT PREPARED BY: Ken Johnstone, Communij TWeveL-Meja jUrector ATTACHMENTS: 1. Agreement to Participate 2. Application Letter AGREEMENT TO PARTICIPATE IN THE CITY OF WHEAT RiDGE BUSINEss DEVELOPMENT ZONE PROGRAM WHEREAS, the City has adopted as a portion of the Wheat Ridge Code of Laws ("Code') Chapter 22, Article 1, Division 5, "Business Development Zone" (the "Program"), to encouraggin-part- continued develapment and expansion of private sector in the City; and LI 1 11 1111111111 1 1 maffffl= IMEREAS, Owner is the owner and operator of real property and improvements thereon within the City and known as the "Seniors' Resource Center," which center provides services to area senior citizens including, but not limited to adult day and respite care, transportation services and job training; and WHEREAS, pursuant to Code Sec. 22-86 (b), the City Council has designated thereal property owned by the Seniors' Resource Center as a "Wheat Ridge Business Development Zone"; and WHEREAS, Owner plans to construct additional facilities at the Seniors' Resource Center, and following said construction, it anticipates the ability to offer increased services to area senior citizens; and VAEREAS, while such increased services will not directly impact City revenue, the indirect benefits of having additional visitors to the area, providing valuable outlets and training for area senior citizens and providing for additional employment opportunities for those working for the Seniors' Resource Center (both during construction and as employees of the Center) are anticipated to be beneficial to the City; and WHEREAS, the Program allows the City to provide for the sharing of certain categories of fees, taxes and other business development-related charges for new development within the business development district ("Eligible City Fees, Charges and Taxes" as defined in Code Sec. 22-87 (2)) to the extent allowed by an agreement with a business owner; and WHEREAS, cost-sharing at the rate prescribed herein will serve to aid the expansion of the Seniors' Resource Center in that it will alleviate a portion of the costs associated with the expansion. Attachment 1 BEERM 3. The Project. 4. Regresentations of Owner. Pursuant to Code Sec. 22-94, Owner hereby represents to the City the following: i. Revitalization of land. Once the Project is completed, it is anticipated to be an attractive 17,000 square foot addition to the neighborhood which will complement the architecture of the Owner's existing facilities. Further, with the increased fa will • able to expand the services it offers to the community. ii. Storm water detention. The engineers and architects for the Project have developed a unique solution to stonn water detention which has been approved by the City. Owner shall build a detention pond on the north side of the existing property and will surround the same with approximately three feet (3) of berm. Estimated cost. The cost for the entire Project including the improvements described above is estimated to be $8.7 million. MEN 0), this Project. Benefits to the community which may generate future sales and use tax indirectly have been identified by the Owner as follows: i. Short-term positive impact during construction. Prior to the completion of the Project, the construction petiod is projected to last ten (10) months. During that time, the general contractor and estimated thirty (30) subcontractors will employ approximately 160 individuals. The estimated construction payroll for completion of the Project is $2.4 million. V. A detailed list of anticipated benefits, is found in the letter dated June 11, 2010 Owner's president, John Zabawa, attached hereto as Exhibit A and fully incorporated by this reference as additional representation of Owner, upon which the City relies. S. Personal aareemeut-z--Pon,-,,t-r,,#,nsferable; no third vartv beneficiaries 6. AgEeement not to constitute debt or obligation of the Cill M m by • ! and will provide a substantial benefit to the City. 10. NO ]oint venture • • . Pursuant to • M • Owner expressly acknowledges Eligible refunded City Fees, Charges and Taxes to the Owner under amount agreed the • • • • •♦ Project, • in Paragraph • business development 12. Uses enumerated the event Owner fails to complete the Project, this Agreement may be terminated at the option of the City. 14. Remedies The Owner waives any constitutional claims against the City arising out of a breach of this Agreement. The Owner's remedies against the City under this Agreement are limited to breach • contract claims, In no event shall the City be liable for any form of damages, including without limitation: exemplary, punitive or consequential damages, including economic damages and lost profits. 15. Termination In the event Owner fails to comply with one or more of the terms of this Agreement, City may, in its sole discretion, terminate this Agreement. 16. Indemnification 17. Severabilily If any part, term or provision of this Agreement or the Program is held by a court of competent jurisdiction to be illegal or in conflict with any law of the State of Colorado, the validLty of the remaining vortions or Drovisions shall not be affected. the rights and obligations o M it �Vrlwvlslwrl MO. TO oe invana, anu Lne rarues; snan cooperate to cure any Yegal OEM in the Agreement or the Program. Should the sharing of Eligible City Fees, Charges and Taxes pursuant to this Agreement be judicially adjudged illegal, invalid or unenforceable under the present or future laws effective during the Tenn of this Agreement by a court of competent jurisdiction in a final, non-appealable judgment, the Parties shall utilize their best, good faith efforts • restructure this Agreement or enter into a new agreement consistent with the purposes of this Agreement. Should the Parties be unsuccessful in their efforts, the Agreement shall terminate without penalty or recourse to either Party. 2 The laws of the State of Colorado shall govern the validity, performance and enforcement of this Agreement. Should either Party institute legal suit or action for enforcement of any obligation contained herein, it is agreed that venue of such suit or action shall be proper and exclusive in the district court for Jefferson County, Colorado. 19. Notices Notice to the City: City Manager City of Wheat Ridge 7500 W. 29"' Ave. Wheat Ridge, CO 80033 Copy to: [INSERT CONTACT] Address 20. Entire agreement — amendments This Agreement embodies the whole agreement of the Parties. There are no promises, terms, conditions, or obligations other than those contained herein, and this Agreement shall supersede all previous communications, representations or agreements, either verbal or written, between the Parties hereto. This Agreement may be amended only by written agreement between the Owner and the City acting pursuant to City Council authorization. 21. Effective date This Agreement shall be effective and binding upon the Parties upon the date first set forth above. 0 IA 1 111"- ESS WHEREOF, Owner and City have each caused this Agreement to executeR by their authorized representatives. I 64 a 1 I M Ilk" MWIMMWFR�� By: Name: John Zabawa Title: President/CEO State of Colorado ss. County of Jefferson Kffl#jHM, ii NOTARY PUBLIC By: Name: Jerry DiTullio Title: Mayor Name: Michael Snow Title: City Clerk am= 0: �. 13 t 1 H 0 S*t til :\IORS' RFC ()I'RCF. CF.N TF.R 1)a1 : .I hilt' I l . '11111 o: (1. Randolph 1'uun-1 ( ItN 'Mana11cr ('its ol Whcat Rld_e 7500 %\ 29'` A%c 1\ heat Rid_c. C0 S001; -5001 RF:: Business De%elopment "Lone -- Request to abate building permit fees and building use tax. Senior,' Iteso11rre Center (SRC) is in the final 111111 raisin- sta�11es of Phasc I ofour Capital ( an)11a111t. are to begin construction uf a 1 7.000 square loot expansion ofuur Wheat Ruf"e I leadquarters. With this critical abatement support li the City of - Wheat Riduc and the (-Its ( ouncil. e \\ ill be�vin this project this sttnlnlcr and pro\ i& a positi\ c economic impact fur 11 heat K1.1_c and .Iefl''I'Sllll Cuunt\ for years to conic. 1 \'c %%oula like to pro\ Idc sonic additional information about Sclliors' Resource Center. this capital lWulect and and concerns that the ('it\ and ( 'it\ Council Ina ha\ e in reducin_ the hullclin_ permit I.ccs and buildin� use; tax. 1 : 11st. her.• is an of - thc entire two phase S`+.7 million dollar project I'hc dream is to dranrlllcalk increase the site of our headquarters and our capacity to sere c the �encral llllhlir. I hI; dream lust proved its vulhility in ?000. when. at the request ol'SRC. the leflcrson Uount\ Commissioners dotlilled our current site. file CUllllllhla I leights Elcmentary School and the 1 \'heal Ridoc Iibrar". This pro \% III begin \\ith the construction of a 110 huildin_ on the adjacent property and then nto\c into Phase _' -- the remodel 01.11 existinL headquarters. Phase I imokcs the property acquisition and ne\\ building; consU �\ 1111 it `110,1 ofS'.(i0t) 0tr0. ['Ile Ile\ \ ill pru\ ide 17,000 square feet of ilea\ eonslruction, and \\ ill be the expanded home lot our Adult l)a\ Pro"I ant. pru\ i& room for other pro - gram grumh and create a tte\\ eunlnluntt\ nleetin� room. I his Ile\\ bulldin�11 double~ the site of our c1.0 rent site Auld oll' rs SR(' the abillt\ to expand all set ices b\ "W file Capital Canlpai�11n is intended to help SR(' I.eep glace 1.%1111 the rapldk �11r0\\ IIIV DcliVer metro area senior population by construc11in,-1 a nee\ huildill- �\ here more seniors ran rcccl� e state-of the art sen ices. (hire the ne�� huildiny11 is complete, the rcmodelino ufour eurrcnt plain lacilit\ at it cost of S1.1 1111 hcoin Phase 2. This remodel %� III 1'iVC us the ability 10 build capacity in all our other pru like care m allilf"llcllt• trallsportati011, V0luntecr scn ices and in -home care. SRC is eery, \erg• close to the end ul'the I'undraisin�11 phase for Phase I. We ha\c only 5279,908 left to complete this lust milestone. 11'c arc at $7. ;?It,l);?. ur 96 ufour Phase I , ;oal ol 7.()t►t►.tullr. �. ' (t� \�I �ih�i � ip� its r r�irit�.A!x.. - . 11\ ;i ,•,.,i•+ K' N' Attachment 2 I lie project 1*011allls 1111 track al Il.i oiiuinal co,t i ll\ nicteasc in unal pl'low c \Ilell,c Ina QcH A b\ file \ alllC Cl1LinlCCl'lll I)r0CCJS I Ill'ollLll out \ alllC 01L111eo'IIIL process. \\ C ha\ i - bld -; 1 manor Colllponcrlts of the projC.Ct anti ha\ e 1'Cali /Cd it S22 LON) savings in Co"strucll„n cost, ! here have been no rc\ imons to the original total cost elf the project We do expect costs o\, roll to renla-I1 consistent throuLhout the protect. I lo i, a list oftlte benefits this project \\ill provide to the clt\ ,111(1 1, 0111111(i11it\. 1. F,\pantl em Ploy file lit opportunities - Our I)rc>_ject "ill have a substantial impact on the ( it\ in several V\ays. H) there will be a short term IluOIkC ittlpact during the L0111 ICtion phase: (2) there \\ ill be it long term positi\c impact \w till the pernrtnoll addition of SRC stall: and 13) ibis expansion \wIll increase our capacity to provide more• direct ser\ ices. includino our doh tr.ulling program. l he construction period is projected air Ill months. During this tittle lianlc. the General Contractor. DR(; Construction and their 30 su vonuactors. \\ ill employ 1 NJ individuals We ha\ e ; �Iinlated then - total construction payroll for people \working on this Wheal Ridge project to he S2 4 nldlion or Oi of the total project cost. There \\ ill also he it permanent gr'o\\ th in SRC Wheal Rid_e stair. Our program see\ ices are located at six unique sites. 'I'\\o of these sites are located in Wheat Ridge, one at 3227 Chase St. \\ hich set as our oryanina brill headquarters, and one at 381 2 Amnions St., \\ hich houses our Woodchuck \ olunteer progran1 and saves as the organisation's colter for our :Minor I Ionic Repair progr.nn. I he grog - ant MAWS \\ 11CCIChalr ramps. installs grab bars and pre\ ides seniors V\ Ah other saIA% Installations \\ hich help then) rem ain in the community longer. You ula\ he surprised to learn lust ho\\ big the total payroll tier SR(' is -- W355,335 -- \\hich include, salaries. benclits and taxes. We ha \e it total 71 gull time employees and 2 part tittle employees at these si\ locations. The Wheat Ridge location is our largest site and serves as headquarters for all of our cottununit pixigrams as %ell as all of our Adnlinis i and Development staff. Our total payroll ti)r Wheat Wee in 2009 \vas S4,O88,334. \\hich represents 189 full tittle and part tittle employees. This site also receives additional loot tlaflic daily of05 clients, volunteers, eonllnL1116 partllo donors and youlors. '\Ilei the tie\\ building is completed in early 20H We "S expand our staffhv a total of 15 F1 F's. \vhrch represents an additional increase to the payroll of 5324,470. 2. Redevelopment and revitalization of vacant land and special attention to storm \\stet management. Shortly also the donation ol'('olunlhia I leight by the County, \\e acquired the Vacant lot just north of this project al 3281 Chase Street and our "mini land bank" project had sufficient land to beLrlt thls project. (You may remember the property at 3281 Chase its it failed attempt of,ul invc,tor to build a duplex). Currently. V\uc are also in serious negotiations \\ ith Rilly Macintyre - \V ho o\\ its the property at 3283 Chase Street, lust north ofthis lot and \\c could make another dramatic inlproyenlent to our area. Once the project is hush, it \\ ill he a vow atuao vc addition to the [lei,"ghborhood and \\ ill conlplcmcnr the architecture ofour current huildin'. Storm %% ater Detection: I iIC cn IIweI, acid architects 1 the nc\\ probe I ha\ c also kk:\ doped a unitluc soluuori to Scot - Iil \\ atCl' detention. Sk( arclikerls and ci\ it cn,;IIlccr� h;l\ C• collahor.IIc ! lei conic up \\ III) a unique plan shat has bccn appru\ed h\ the cut\ . l he plan is to I)L1II l .I kiCIcntion pond on the north side of - tile proper(\ and surround it h\ I'cl o4bu 3. Our net\ building and the increased organizational capacity \%ill create direct spill()\er benefits to the cite in these \vats: Incrcascd physical capacity ol'SRC' \\ill allot\ us to serve more seniors in Wheat Rid.,c and .Ict ii:rson Count\. and pro\ ide the support they need to remain in our conununity and a% old premature i list it Lit Iona II /al Ioil O\craf I. ill 2009. SRC pro\ Ided (Itrect ser\Ices to more than 1 8.00 ► seniors and individuals \\ Ith disabilities. I his total Included tlldi\iduals front our sex en nlaJor 1711 areas. Of the total, about 10 "o or 1.800 individuals live in Wheat Rld�0c. W e have estimated that alicr the building is expanded we will have the capacity to serve 30 more clients over the next It\ e Nears. This increase in ca pacity \\ill mean SRC can provide oil 1 support )1'2,340 Wheal Rid_-,C seniors per year in Wheal Ridge, rather than the current 1,800. This expansion project \will also double the capacity of our Wheat Ridge Adult hay program and \\c expect increased tl - afllC in our facility of caregiver IanuIx members, and new clients who visit the center fhesc clients \\ ill be stopping at Wheat Ridge businesses for food. ,gas and other purcha,cs. The main I'unction of SRC• is to provide contnlunity based service for seniors and adults \ \ith disabilities so that individuals will remain in their homes for as long as possible. Besides being \\ hat c\ cr\onc \wants, and being; more economical than instructional care, individuals \\ill continue to shop and spent] money in W heat Ridge li\in;; in the community. which helps to maintain the cit\'s tax base. 4. How will these projects provide joint benefit to the community? In addition to increasing the services available to Wheat Ridge residents \\e estimate an incrc,lsc ni all our conununit\ programs. Herz; is a list ofthe direct services SRC provides: - Coordinated Care Management Services- provides assessments. individual care plans. service delivery, emergency assistance coordination of community resources and SRC programs, and is the entry point for victims' assistance, 8,018 individuals were served in 2009, and 150 individuals received assistance through the emergency and energy assistance funds at SRC; -Adult Dat-and Respite Care- provides services for seniors and adults with de\clopmental disabilities and their families at five different sites; 329 individuals were served in 2009; - Transportation Services- provides door -to -door rides to doctors, shopping, community centers, meal sites and appointments; 138,395 one -way rides were provided in 2009; This includes the additional rides currently being funded by the City's CDBG program. - In- Honed Care Services- provides non - medical services such as cooking, house cleaning. Iecdirtg. shopping, laundry, and companionship, 86,152 hours of service were provided in 2009; - i "olrinteer Services - provides adult volunteers to assist seniors in day -to - day needs as well as inl6rlttation on personal safety; 1,421 volunteers worked with SIRC in 2009 and contributed 198,952 hours of volunteer service to the community through the :agency Volunteer Program and Retired Senior Volunteer Program (RSVP) (the equivalent ol'83 full -tinge employees), assisting 1,532 seniors; - Job Training .Services provides on - the - job training and support for tindin;" perin<ulent cnlplo\ meat for older adults in today's challenging job market; in 2009, 121 seniors who \\ere at or below 125 %, of the Federal Poverty Level participated in this program to help them return to the %iorkforce: and SRC- Evergreen provides the sank comprehensive services to seniors in the rural area, surrounding Denycr and in 2009 provided services to approximateh 3,528 seniors from four foothills counties. In addition to it groa ing relationship x ith the Oty. Police Department. 1•11 Department and W al,:l District -- SRC partners and collaborates l%ith more than 200 local. state and Icdcral auencic, in Colorado -- SRC is able to provide expanded service options abo\ e and beyond our e\tenl\ e programming within the organization because of these partnerships. These strow- co llaborations are just unc ol'thc reasons cvhy SRC is a leader Ibr scniors in the comnlunity. One oft lie key Matures of the new building will be an 810 square foot conlcrencc room, witch \1111 acconr►tlodate up 10 50 people. Our plans arc to make this conference room available to other or,,anizations lOr free during, normal business hours and Ibr it small operational cost after horn's. S. The Funds provided from this abatement request will go directly to this project. We have attached a Campaign Status Report which provides greater detail about c\ here the various sources of lilnds have come lronl so far. I Jere is a summary: Individuals S 1, 186,612 Cor poratlolls S 144.320 (,rants S1,234,809 City of' Wheat Ridge (.tune 2008) S 50.000 In -kind Support S2,401,020 Or-aniiat loll ill funds S 243,211 Permanent Loan S2,000,000 Coral Funds Committed as of June 2010 $7,320,033 �1 e will use these finds from this granted abatement on two specific construction area's ; tl the Storm �4 ater Retention Plan and tilt a2 the community kitchen. 6. 'rhe Project Cost h:stimate A detailed Worksheet is attached. The total construction cost is $3,776,651. "this is based on the detailed list from our General Contractor DRG Construction. We are wry pleased the City and City Council has been such a strong partner and advocate for SRC. As the 60+ population ages and doubles in size by the year 2020, we know this aging, demographic will continue to put pressure on SRC to keep up cl ith the demand and we could like you to be able to help its continue to provide more economical community services versus more costly nursinz home placements which are often that alternative. I'hank you for considering, this request. Sincerely, I ll La I id ( 'I�.O Seniors' Resource Center Chase Street Capital Campaign SPECIAL DRAFT: TO COMPLETE PHASE 1 ! 41M WLI -New CmsbtUCticm &_A0 6diam _ ___D Total Raised PTD T 1 01 20 rud Annual Appeals (5.1) S50.397 $16,000 Unrestricted Donations S10.26600 Special Event (5.2) S171 068 $31,375 Other Special Events (5.3) 559.448 S3 122 00 $66,800 Leadership, Vol, staff (5.4) S137.202 $565000 $10,000 Major Gifts (5.5) $439654 526.643 00 $150,000 Bequests (5.6) $328844 $10,000 Corporation and Vendor (5.7) S144.320 S27 173 39 $20.000 Grants (5.8) S1.284.869 51.100 00 $50,000 In -kind support (5.9) S104.055 S11.625 00 $225,000 In -kind Chase St Building 52.185.000 Value Engineering $171 965 Organizational Funds (5.11) $243.211 S8.14600 Assumes a Permanent Loan S2.000.000 (Approved 9- 2 -09!!) Total Raised 96.32% $7,320,032 Needed to complete Project 279,968 Phase 1 S7.600.000 $579.175 "Pkaee 2- $1 -1 MiNicm `Re4.,OdeQ o+ Fxiet ehg 4leadT" fens ran !-M-41 SENIORS RESOURCE CENTER NEW BUILDING CONSTRUCTION PHASE ONE SUMMARY Jun 10 PHASE ONE ESTIMATE LINE NO DESCRIPTIONS AMOUNT DIRECT BUILDING CONSTRUCTION SUMMARY: 1 General Conditions 390,680 2 Sitework and Demolition 315,361 3 Concrete 132,198 4 Masonry 121,175 5 Metals 145,357 6 Carpentry 352,769 7 Moisture Protection 177,860 8 Doors and Windows 279,250 9 Finishes 288,455 10 Specialties 27,165 11 Euipment 163,093 12 Furnishings 7,790 13 Special Construction 0 14 Conveying Equipment 135,325 15 Mechanical 469,769 16 Electrical 319,211 17 Burden and Taxes 136,818 18 Contractors Contingency 173,114 19 Contractors Fee 103,868 20 Bond Costs 37,393 21 Total Contractor Direct Building Cost 3,776,651 EST IEMBER REINHART Council Bill No. 10 Ordinance No. 1465 'Series 2010 WHEREAS, the Council wishes to enhance the effectiveness of the Business Development Zone program by reference thereto in the section of the Code of Laws pertaining to the use tax. NOW THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WHEAT RIDGE, COLORADO: Section 22-68 of the Wheat Ridge Code of Laws is amended by the addition of a new subsection (c), to read as follows Section 2. Severabili!Y, Conflicting Ordinances Repeated. If any section, subsection or clause of this Ordinance shall be deemed to be unconstitutional or otherwise invalid, the validity of the remaining sections, subsections and clauses shall not be affected thereby, All other ordinances or parts of ordinances in conflict with the provisions of this Ordinance are hereby repealed. Section 3. Effective Date. This Ordinance shall take effect fifteen (15) days after final publication, as provided by Section 5,11 of the Charter. INTRODUCED, READ, AND ADOPTED on first reading by a vote of 8 to 0 on this 14th day of June, 2010, ordered published in full in a newspaper of general circulation in the City of Wheat Ridge, and Public Hearing and consideration on final passage set for Monday, the 28 day of June, 2010 at 7:00 p.m., in the Council Chambers, 7500 West 29 Avenue, Wheat Ridge Colorado, READ, ADOPTED AND ORDERED PUBLISHED on second and final reading by a vote of _L to __g_, this 28th day of . junq ---1 2010. SIGNED by the Mayor on this _jBjj day of g 201 v ; K= Approved,-a� ' �to Form Gerald E. Dahl, City Attorney First Publication: June 17, 201 Second Publicatiow July 1, 20 Wheat Ridge Transcript Effective Date: July 16, 2010 ( ity 0 e ITEM NO: JE DATE: June 28,2010 " TITLE*- COUNCIL BILL NO. 10-2010 - A ORDINANCE AMENDING SECTION + • OF CODE OF LAWS TO PERMIT HEARING PUBLIC ' f BIDS/MOTIONS ORDINANCES FOR 2 ND READING (6/28/2010) RESOLUTIONS Council Action Form June 28, 20 10 Page 2 Alternatively, the City Council discussed two other options: 1) create a new program that wouko give City Council the ability to waive certain building permit fees and building use tax for targeted projects; and 2) amend the Business Development Zone Program to apply to a broader range • development scenarios. Staff does not believe it is necessary to create a new program alter the existing program. I FAM am # I REPORT PREPARED BY: Kenneth Johnst*ne. COO 111"ITIll • ra Council Bill No. 10 Ordinance No. Series 2010 TITLE: AN ORDINANCE AMENDING THE WHEAT RIDGE CODE OF LAWS TO PERMIT WAIVER OF USE TAX Section 22-68 of the Wheat Ridge Code • Laws is amended by the addition of a new subsection (c), to read as follows Section 2. SeverabilIN, Conflicting Ordinances Regealed. If any section, subsection or clause • this Ordinance shall be deemed to be unconstitutional or otherwise invalid, the validity • the remaining sections, subsections and clauses shall not be affected thereby. All other ordinances • parts of ordinances in conflict with the provisions of this Ordinance are hereby repealed. Section 3. Effective Date. This Ordinance shall take effect fifteen (15) days after final publication, as provided by Section 5.11 of the Charter. INTRODUCED, READ, AND ADOPTED on first reading by a vote of 8 to 0 this 14th day of June, 2010, ordered published in full in a newspaper of gener circulation in the City of Wheat Ridge, and Public Hearing and consideration on fin. passage set for Monday ; the 28 day of June, 2010 at 7:00 p.m., in the Coun Chambers, 7500 West 29 Avenue, Wheat Ridge, Colorado. 11 READ, ADOPTED AND ORDERED PUBLISHED on second and final reading a vote of — to this _ day of 2010. 1 SIGNED • the Mayor • this day • 2010. Jerry DiTullio, Mayor M2 [erm 1011IMMINIMMT IN= First Publication: June 17, 2010 Second Publication: Wheat Ridge Transcript Effective Date: SEN 10 RS' RESOURCE CENTER Budding a Foundation for Independent Living Since 1978, Date: J Line 11, 20 10 To: G, Randolph Young City Manager City of Wheat Ridge 7500 W 29"' Ave Wheat Ridge, CO 80033-8001 RE: Business Development Zone --Request to abate building permit fees and building use tax, Seniors' Resource Center (SRC) is in the final fund raising stages of Phase I of our Capital Campaign. We are hoping to begin construction of a 17,000 square foot expansion Of Our Wheat Ridge Headquarters. With this critical abatement support from the City of Wheat Ridge and the City Council, we will begin this project this summer and provide a positive economic impact for Wheat Ridge and Jefferson County for years to come. We would like to provide some additional information about Seniors' Resource Center, this capital project and address any concerns that the City and City Council may have in reducing the building permit fees and building use tax. First, here is an overview of the entire two phase $8.7 million dollar project. The dream is to dramatically increase the size of our headquarters and our capacity to serve the general public, This drearn First proved its viability in 2006, when, at the request of SRC, the Jefferson County Commissioners donated our Current site, the Columbia Heights Elementary School and the Wheat Ridge library. This project will begin with the construction of a new building on the adjacent property and then move into Phase 2 -- the remodel our existing headquarters. Phase I involves the property acquisition and new building construction, with a goal of $7,600,000. The new building will provide 17,000 square feet of new construction, and will be the expanded home For our Adult Day Program, provide room for other program growth and create a new community meeting room. This new building doubles the size of our current site and offers SRC the ability to expand all services by 30 0 1/0, The Capital Campaign is intended to help SRC keep pace with the rapidly growing Denver metro area senior population by constructing a new building where more seniors can receive state-of-the art services. Once the new building is complete, the remodeling Of Our Current main facility at a cost of$l. I million will begin Phase 2. This remodel will give us the ability to build capacity in all Our other programs, like care management, transportation, volunteer services and in-home care. SRC is very, Very close to the end of the ftmdraising phase for Phase 1. We have only $279,968 left to complete this first milestone. We are at $7,320,032, or 96% of our Please I goal of $7,600,000, 3227 CHASE SFREET* DENVER, COLORADO 80212 * (303) 238-8151 # FAX (303) 238-8497 www,SRCAging.org The project remains on track at Its original cost. Any increase in total project expenses has been offset by the value engineering process, Through Our value engineering process, we have re-bid several major components of the project and have realized a $221,000 savings in construction costs. There Dave been no revisions to the original total cost of the project. We do expect costs overall to remain consistent throughout the project. Here is a list of the benefits this project will provide to the city and surrounding community: T. Expand employment opportunities - Our project will have a substantial impact on the City in several ways. (1) there will be a short tern positive impact during the construction phase (2) there will be a long term positive impact with the permanent addition of SRC staff, and (3) this expansion will increase our capacity to provide more direct services, including our job training program. The construction period is projected for 10 months. During this time frame, the General Contractor, DRG Construction and their 30 subcontractors, will employ 160 individuals, We have estimated their total construction payroll for people working on this Wheat Ridge project to be $2.4 million or 65% of' the total project cost. There will also be a permanent growth in SRC Wheat Ridge staff, Our program services are located at six unique sites. Two of these sites are located in Wheat Ridge, one at 3227 Chase St, which serves as our organizational headquarters, and one at 3812 Ammons St., which houses our Woodchuck Volunteer program and serves as the organization's center for our Minor Home Repair program. The program builds wheelchair ramps, installs grab bars and provides seniors with other safety installations which help the remain in the community longer. You may be surprised to leartijUst how big the total payroll for SRC is -- $6,355,335 -- which includes salaries, benefits and taxes. We have a total 71 hall time employees and 230 part time employees at these six locations. The Wheat Ridge location is our largest site and serves as headquarters For all of our community programs as well as all of our Administrative and Development staff. Our total payroll for Wheat Ridge in 2009 was $4,088,334, which represents 189 full time and part time employees. This site also receives additional foot traffic daily of 65 clients, volunteers, community partners, donors and vendors. After the new building is completed in early 2011, we will expand our staff by a total of 15 FT E's, which represents an additional increase to the payroll of $324,470. 2. Redevelopment and revitalization of vacant land and special attention to storm water management. Shortly after the donation of Columbia Height by the County, we acquired the vacant lot just north of this project at 3281 Chase Street and our "mini land bank" project had sufficient land to begin this project. (You may remember the property at 3281 Chase as a failed attempt of an investor to build a duplex). Currently, we are also in serious negotiations with Billy Macintyre - who owns the property at 328' ) Chase Street, just north of this lot and we could make another dramatic improvement to our area. Once the project is built, it will be a very attractive addition to the neighborhood and will complement the architecture of our current building, Storm Water Detention: The engineers and architects for the new project have also developed a unique Solution to storm water detention. SRC architects and civil engineers have collaborated to come Lip with a unique plan that has been approved by the city. The plan is to build a detention pond on the north side of the property and surround it by 3 feet of birm. 3. Our new building and the increased organizational capacity will create direct spillover benefits to the city in these ways: Increased physical capacity of SRC will allow us to serve more seniors in Wheat Ridge and Jefferson County, and provide the support they need to remain in our community and avoid premature institutionalization. Overall, in 2009, SRC provided direct services to more than 18,000 seniors and individuals with disabilities. This total include(] individuals from our seven major program areas. Of the total, about 10% or 1,800 individuals live in Wheat Ridge. We have estimated that after the building is expanded we will have the capacity to serve 30% more clients over the next five years. This increase in capacity will mean SRC can provide ongoing support of 2,340 Wheat Ridge seniors per year in Wheat Ridge, rather than the current 1,800. This expansion project will also double the capacity of our Wheat Ridge Adult Day program and we expect increased traffic in our facility of caregiver family rnernbers, and new clients who visit the center. These clients will be stopping at Wheat Ridge businesses for good, gas and other purchases. The main function of SRC is to provide community based service for seniors and adults with disabilities so that individuals will remain in their homes for as long as possible. Besides being what everyone wants, and being more economical than instructional care, individuals will continue to shop and spend money in Wheat Ridge living in the community, which helps to maintain the city's tax base. 4. Flow will these projects provide joint benefit to the community? In addition to increasing the services available to Wheat Ridge residents we estimate an increase in all Our Community programs. Here is a list of the direct services SRC provides: - Coordinatt-4 Care Management Services-provides assessments, individual care, plans, service delivery, emergency assistance, coordination Of community resources and SRC programs, and is the entry point for victims' assistance; 8,018 individuals were served in 2009, and 150 individuals received assistance through the emergency and energy assistance funds at SRC; - Adult Day and Respite Care-provides services for seniors and adults with developmental disabilities and their families at five different sites; 329 individuals were served in 2009; Transl)ortafion Services-provides door-to-door rides to doctors, shopping, community centers, rneal sites and appointments; 138,395 one-way rides were provided in 2009; This includes the additional rides currently being funded by the City's CDBG program. - In-Home Care Services-provides non - medical services such as cooking, house cleaning, feeding, shopping, laundry, and companionship; 86,152 hours of service were provided in 2009; U"olanteer Services - provides adult volunteers to assist seniors in day-to-day needs as well as information oil personal safety; 1,421 volunteers worked with SRC in 2009 and contributed 198,952 hours of volunteer set to the community through the Agency Volunteer Program and Retired Senior Volunteer Program (RSVP) (the equivalent of 83 full-time employees), assisting 1,532 seniors; - Job Training Services- prov ides on-the-job training and support for finding permanent employment for older adults in today's challenging job market; in 2009, 1,21 seniors who were at or below 125% of the Federal Poverty Level participated in this program to help them return to the workforce; and SRC- Evergreen provides the same comprehensive services to seniors in the rural areas Surrounding Denver and in 2009 provided services to approximately 4,528 seniors from four foothills counties. In addition to a growing relationship with the City, Police Department, Fire Department and Water District -- SRC partners and collaborates with more than 200 local, state and federal agencies in Colorado -- SRC is able to provide expanded service options above and beyond our extensive programming within the organization because ofthese partnerships. These strong collaborations are just one of the reasons why SRC is a leader for seniors in the community. One of the key features of the new building will be an 810 square foot conference room, which will accommodate up to 50 people. Our plans are to make this conference room available to other organizations for free during normal business hours and for a small operational cost after hours. 5. 'Fite Funds provided from this abatement request will go directly to this project. We have attached a Campaign Status Report which provides greater detail about where the various sources of funds have come from so far. Here is a summary: Individuals $1,186,612 Corporations $ 144,320 Grants $1,234,869 City of Wheat Ridge (June 2008) S 50,000 In-kind Support $2,461,020 Organizational funds $ 243,211 Penrianent Loan $2,000,000 Total Funds Committed as of June 2010 $7,320,033 We will use these funds from this granted abatement on two specific construction area's #I the Storm Water Retention Plan and the #2 the community kitchen. 6. The Project Cost Estimate A detailed Work is attached. The total construction cost is $3,776,651. This is based on the detailed list from our General Contractor DRG Construction. We are very pleased the City and City Council has been Such a strong partner and advocate for SRC, As the 60+ population ages and doubles in size by the year 2020, we know this aging demographic will continue to put pressure oil SRC to keep up with the demand -,-, and we would like you to be able to help us continue to provide more economical community services versus more costly nursing home placements which are often that alternative. Thank you for considering this request. Sincerely, J 11 Zabawa , P dent/CEO - i4 Seniors' Resource Center Chase Street Capital Campaign SPECIAL DRAFT: TO COMPLETE PHASE 1! I I# # � - �. I Fl Annual Appeals (6.1) $50,397 $16,000 Unrestricted Donations $10,266.00 Special Event (5.2) $171,068 $31,375 Other Special Events (5.3) $59,448 $3,122,00 $66,800 Leadership, Vol, staff (6.4) $137,202 $5,650.00 $10,000 Major Gifts (5.5) $439,654 $26,643,00 $150,000 Bequests (5.6) $328,844 $10,000 Corporation and Vendor (5.7) $144,320 $27,173.39 $20,000 Grants (6.8) $1,284,869 $1,100.00 $60,000 In-kind support (5.9) $104,055 $11,625.00 $226,000 In-kind Chase St Building $2,185,000 Value Engineering $171,965 Organizational Funds (5.11) $243,211 $8,146.00 Assumes a Permanent Loan $2,000,000 (Approved 9-2-091!) ffMJWKJWJ MM $579,176 Needed to complete Project ANN= Phase 1 $7,600,000 .-�2 ________________ i --------------- MIN k . I General Conditions 390,680 2 Sitework and Demolition 315,361 3 Concrete 132,198 4 Masonry 121,175 5 Metals 145,357 6 Carpentry 352,769 7 Moisture Protection 177,860 8 Doors and Windows 279,250 9 Finishes 288,455 10 Specialties 27,165 11 Euipment 163,093 12 Furnishings 7,790 13 Special Construction 0 14 Conveying Equipment 135,325 is Mechanical 469,769 16 Electrical 319,211 17 Burden and Taxes 136,818 is Contractors Contingency 173,114 19 Contractors Fee 103,868 20 Bond Costs 37,393 21 Total Contractor Direct Building Cost 3,776,651 AGREENIENTTO PARTICIPATEIN T1111'111' OF'WHEM RIDGE BUSINESS DEVELOPNIENTZONE PRQ(_',RA.N1 This Agreement to Participate in the City of Wheat Ridge Business Development Zone Program (this "Agreement") is made and entered into as of the __.1. day of __ ____..___.,__._.,am..__________ -- 2010, by and between SENIORS' RESOURCE CENTER, 3227 Chase Street, Denver, Colorado 80212, hereinafter referred to as the "Owner" and the CITY OF WHEAT RIDGE, COLORADO, 7500 W. 29"' Avenue, Wheat Ridge, Colorado 80033 hereinafter referred to as the **City,*' collectively the *'Parties," and cacti individually, as a - Party." WHEREAS, the City has adopted as a portion of the Wheat Ridge Code of Laws ("Code") Chapter 22, Article 1, Division 5, "Business Development Zone" (the "Program"), to encourage, in part, continued development and expansion of opportunities for employment in the private sector in the City; and WHEREAS, Owner has applied to participate in the Program; and WHEREAS, Owner is the owner and operator of real property and improvements thereon within the City and known as the "Seniors' Resource Center," which center provides services to area senior citizens including, but not limited to adult day and respite care, transportation services and job training; and WHEREAS, pursuant to Code See. 22-86 (b), the City Council has designated the real property owned by the Seniors' Resource Center as a "Wheat Ridge Business Development Zone" and WHEREAS, Owner plans to construct additional facilities at the Seniors' Resource Center, and following said construction, it anticipates the ability to offer increased services to area senior citizens, and WHEREAS, while such increased set will not directly impact City revenue, the indirect benefits of having additional visitors to the area, providing valuable outlets and training for area senior citizens and providing for additional employment opportunities for those working for the Seniors' Resource Center (both during construction and as employees of the Center) are anticipated to be beneficial to the City; and WHEREAS, the Program allows the City to provide for the sharing of certain categories of fees, taxes and other business development-related charges for new development within the business development district ("Eligible City Fees, Charges and 'Faxes" as defined in Code Sec. 22-87 (2)) to the extent allowed by an agreement with a business owner, and WHEREAS, cost-sharing at the rate prescribed herein will serve to aid the expansion of the Seniors' Resource Center in that it will alleviate a portion of the costs associated with the expansion. NOW, THEREFORE, ill consideration ofthe foregoing, and the covenants, promises, and agreements of each of the Parties hereto, to be kept and preformed by each of them, the Parties agree as follows: 1. Recitals. The Recitals set forth above are incorporated in this Agreement by reference The term of this Agreement shall commence oil 20 a and sh terrilinate 20 (the "Term"). Notwithstanding the fore ping, it is an express provision of this Agreement that this Agreement shall expire and be of no further force and effect upon the occurrence of the earlier to occur of. (1) expiration of the Term or (2) payment of the maximum amount to be shared as set forth in Paragraph 7 (whether or not the Term has expired), or (3) determination by the City of Owner's default, as provided in Paragraphs 13 or 15. 3. The Project. The project proposed by the Owner through which it desires to participate in the Program consists of the following, generally: acquisition of new real property upon Which to expand services provided by Owner, new building construction of approximately 17,000 square feet, such square footage to expand the size of Owner's adult day program, to allow for the creation of a new community meeting room and to expand Owner's available services by approximately 30%. In addition, Owners existing facilities shall be remodeled. The foregoing shall be collectively referred to herein as the **Project," and is more fully described below at Paragraphs 4 and 8. 4. Representations of Owner. Pursuant to Code Sec. 2'.2 Owner hereby represents to the City the following: a- Improvements *Li, Lroyat. J ppt --- Revitalization of land. Once the Project is completed, it is anticipated to be all attractive 17,000 square foot addition to the neighborhood which will cornplernent the architecture of the Owner's existing facilities. Further, with the increased space, Owner will be able to expand the services it offers to the community. ii. Storm water detention. 'File engineers and architects Ibr the Project have developed a unique solution to storm water detention which has been approved by the City. Owner shall build a detention pond on the north side of the existing property and will surround the same with approximately three feet (3') of berm. iii. Estimated cost. The cost for the entire Project including the improvements described above is estimated to be $8.7 million. b. t.,x �)ecte�t increnjqntfl ftLture t ax revenue. Owner operates a non - profit organization. Any -_ incremental future sales and use tax revenue will be indirectly, not directly generated by N this Project. Benefits to the community which may generate future sales and use tax, indirectly have been identified by the Owner as follows: Short-term positive impact during construction, Prior to the completion of the Project, the construction period is projected to last tell (10) months.. During that time, the general contractor and estimated thirty (30) subcontractors will employ approximately 160 individuals. The estimated construction payroll for completion of the Project is $2.4 million. ii. Long-term positive impact by addition of staff. With increased facilities and ability to increase services, Owner will employ more permanent staff Specifically, it is estimated that permanent staff will be added both to Owner's headquarters and to its volunteer program. It is anticipated that at the completion of the Project, fifteen (1 5) full-time employees will be hired, representing all additional payroll increase of $324,470.00. iii. bong- term positive impact through ability to provide additional services. Upon completion of the Project, it is estimated that Owner will have capacity to serve thirty percent (30%) more clients over the following five (5) years. Specifically in the City, Owner will be able to provide senior services to approximately 2,340 City seniors, which represents increased service to 540 additional seniors than call currently be served. The goal of the programming is to allow senior citizens to remain in the community longer, iv. An indirect benefit will be continued shopping by the seniors and their friends and family in the area, likely contributing to the City's tax base. V. A detailed list of anticipated benefits, is found in the letter dated June 11, 2010 OwneCs president, John Zabawa, attached hereto as Exhibit A and fully incorporated by this reference as additional representation of Owner, upon which the City relies. 5. Personal agreement; non-transferable, no third party beneficiaries I The cost-sharing of Eligible City Fees, Charges and "Faxes as approved herein shall constitute a personal agreement between the City and Owner. The terms of this Agreement do not run with the land. The obligations, benefits and/or provisions of this Agreement may not be assigned in whole or in any part without the express authorization of the City Council. No third party shall be entitled to rely upon or enforce any provision hereof. 6. Agreement not to constitute debt or obligation of the City Nothing herein shall be construed to constitute a debt or obligation of the City. Notwithstanding any other provision of this Agreement to the contrary, the Parties understand and acknowledge that the City is Subject to Article X, § 20 of the Colorado Constitution ("TABOR"). This Agreement does not create a multi-fiscal year direct or indirect debt or obligation within the meaning of "I"ABOR and, therefore, notwithstanding anything in this Agreement to the contrary, all payment obligations of the (.'try are expressly dependent and M conditioned upon the continuing availability of funds beyond the term Of tile C1ty*S Current fiscal period ending upon the next succeeding December 31. Financial obligations of the City payable after the Current fiscal year are contingent upon Funds for that purpose being appropriated, budgeted, and otherwise made available in accordance with ordinances and resolutions of the City and other applicable law, 7. Cost-sharing a. Estimated s Chrr&,s and Taxes. Tile following are estimates of the Eligible City Fees, Charges and Taxes which are the subject of the cost herein. b. Ex ected Incremental Future Sales and Use Tax Revenue. The Expected Incremental Future. Sales and Use Tax Revenue, as such term is defined in Code See. 22-87 (2). is 0M. c. Cost- sharing. Pursuant to Code Sec. 22-88, cost-sharing of the Eligible City Fees, Charges and Taxes nlay be granted tip to the Expected Incremental Future Sales and Use 'Fax Revenue, However, it is anticipated that the Incremental Sales and Use "Fax Revenue received from the Project is currently projected to be $0.00. Votil>ithstttn(fing the fin-egoing, and in reliance upon the representation of Owner of the benefits to the City of the Project, tile City and Owner agree to the cost-sharing for the Eligible City Fees, Charges and Taxes as follows: r lthe )0 of the Eligible City Fees, Charges and 'raxes shall be due arid paid to City by Owner. Upon receipt thereof the City shall refund % of such ' Eligible City Fees, Charges and Taxes back to the Owner over the described l� 7-� month Terra ibed i re than n Paragraph h 2 herein. In no event shall the City be obligated eser I nIo on � than to refund rno of eligible City Fees, Charges arid oblig by it. di 14s n S 8. Legal challenge In the event of legal challenge to the Program as applied to Owner, any costs scheduled raj to be shared-back to Owner shall be escrowed until resolution of the dispute. 9. Waiver of Code reguirements M 7 'fo the extent any requirements of Code Sees. 22-85 through 22-96 have been waived, V such waiver has occurred Pursuant to Code Sec, 22-93 (c) whereby the City Council has found M by a 1 4 aiajority vote that such waiver is in the public's interest and will provide a substantial benefit to the City, 10. No joint venture Pursuant to Code Sec. 22-95, nothing herein shall be construed to create a joint venture between the City and Owner, Notwithstanding any provision hereof, the City shall never be a joint venture in any private entity or activity which participates in the Program, and the City shall never be liable or responsible for any debt or obligation of any participant, including the Owner, in the program. 11. Use of funds Pursuant to Code Sec. 22-89, 0 expressly acknowledges and agrees that any Eligible City Fees, Charges and Taxes refunded to the Owner under this Agreement, up to the amount agreed upon by the City Council pursuant to this Agreement may only be used for the purpose of the Project, as described in Paragraph 12, on Owner's Property within the underlying business development zone. 12. Uses enumerated Pursuant to Code Sec. 22-90, the uses to which the Eligible City Fees, Charges and Taxes ri'my be put by the Owner shall be strictly limited to those which are approved by the City Council and which relate directly to the Project within the City, which Project is anticipated to indirectly generate more municipal sales and use tax revenues 'for the City in the future. Uses hereby expressly approved by City Council are as follows: - 17,000sqiiai-e cottsti-i.ictioii, - Remodeling of the Seniors' Resource Center located in the City; - Coot C`at Alana Services: providing assessments, individual are plans, service delivery, emergency assistance, coordination Of C01111111,111ity resources and other programs, and is the entry point for victijns' assistance', - Adult Da ' v and Re re spite Ca: providing services tbr seniors and adults with developmental disabilities and their families at live different sites; - 71 providing door-to-door rides to doctors, shopping, community centers, meal sites and appointments, - In -He tne ("tire Sei providing non-medical services such as cooking, house cleaning, feeding, shopping, laundry, and cornpanionship, - tic hinleei- Set-vices: providing adult volunteers to assist seniors in day-to-day needs as well as information on personal safety; and/or Job 7) - tdning Sei providing on-the-job training an m d support for finding permanent en for older adults in the job market. 13. No Covenant to construct or too erate The intent of this Agreement is to provide f6r Owner's participation in the Program, in the event that Owner completes the Project. Notwithstanding any provision in this Agreement to the contrary, Owner shall have no obligation under this Agreement to complete the Project. In 0 the event Owner fails to complete the Project, this Agreement may be terminated at the option of tile City. 14. Remedies The Owner waives any constitutional claims against the City arising Out of a breach of this Agreement. The Owncr*s remedies against the City under this Agreement are limited to breach of contract claims. In no event shall the City be liable for any forril of damages, including without limitation: exerriplary, punitive or consequential damages, including economic damages and lost profits. 15. Termination In the event Owner fails to comply with one or more of the terms of this Agreement, City may, in its sole discretion, terminate this Agreement. 16. Indemnification To the fullest extent permitted by law, Owner agrees to indemnify and hold the City harmless from any damage, liability or cost (including reasonable attorneys' fees and cost of defense) to the extent caused by the Owner's negligent acts, errors or omissions ill tile perforinance this Agreement and those of its sub-contractors, sub-consultants or anyone for whom the Owner is legally liable. To the extent penrintcd by the Colorado Constitution and statutes, the City agrees to indemnify and hold tile Owner harmless fi•on any damage, liability or cost (including reasonable attorneys' - fees and costs of defense) to tile extent caused by the City's negligent acts, en or ornissions arising from this Agreement. These defense and indemnification obligations shall survive the expiration or termination of this Agreement. The Parties acknowledge that the provisions of this Paragraph are not intended to waive or alter any of the rights and defenses afforded to the City under the common law, the Colorado Governmental Immunity Act, C.R.S. §§ 24-10-101, el. scq. or any other law. 17, Severabili!j If any pail, term or provision of this Agreement or the Program is held by a court of competent jurisdiction to be illegal or in conflict with any law of the State of Colorado, the validity of the remaining portions or provisions shall not be affected, the rights and obligations of' the Parties shall be construed and crifiorced as if the Agreement did not contain the particular part, term or provision held to be invalid, and the Parties shall cooperate to cure any legal defects in the Agreement or the Program. Should the sharing of Eligible City Fees, Charges and Taxes pursuant to this Agreement be Judicially adjudged illegal, invalid or unenforceable under the present or future laws effective during the Terril, of this Agreement by a court of competent jurisdiction in a final, non - appealable judgrment, the Parties shall LltiliZC their best, good faith efforts to restructure this Agreement or enter into a new agreement consistent with the purposes of this Agreement. Should the Parties be unsuccessful in their efforts, the Agreement shall terminate without penalty or recourse to either Party. 18. Governing law; venue I file laws of the State of Colorado shall govens the validity, pertbrinancc and enforcement of this Agreement. Should either Party institute legal suit or action for criforcernent of any obligation contained herein, it is agreed that venue of such suit or action shall be proper and exclusive in the district Court for Jefferson County, Colorado. 19. Notices All notices required or Permitted under this Agreement shall be in writing and shall be hand delivered or sent by certified mail, return receipt requested, postage prepaid, to be addressed to the Parties set forth below. All notices so given shall be considered effective upon the earlier of the actual receipt or seventy-two (72) hours after deposit in the United States Mail with the proper address. Either Party by notice so given may change the address to which future notices shall be sent: Notice to the City: City Manager City of Wheat Ridge 7500 W. 29"' Ave. Wheat Ridge, CO 80033 Copy to: City Attorney City of Wheat Ridge 7500 W. 29"' Ave, Wheat Ridge, CO 80033 Notice to the Owner: John Zabawa Seniors' Resource Center 3227 Chase Street Denver, CO 80212 Copy to: 20. Eutire agreement — amendinents [INSERT CONTACT] Address This Agreement embodies the whole agreement of the Parties. There are no promises, terrns, conditions, or obligations other than those contained herein, and this Agreement shall supersede all previous cornuiunications, representations or agreements, either verbal or written, between the Parties hereto, This Agreement may be amended only by written agreement between the Owner and the City acting pursuant to City Council authorization. 21. Effective date This Agreement shall be effective and binding upon the Parties upon the date first set forth above. IN IN WITNESS WHEREOF, Owner and City have each caused this Agreement to be executed by their authorized representatives. OWNER SENIORS' RESOURCE CENTER By: _..._.r..._._._.._.___.....___ Name: John Zabawa Title: President/CEO State of Colorado ss. County of Jefferson The foregoing Agreement was acknowledged before, me this day oI`_,__,,___,.,._,,,, .... , 2010, by John Zabawa as President of Seniors' Resource Center. WITNESS MY HAND AND OFFICIAL SEAL, My Commission expires: NOTARY PUBLIC CITY OF WHEAT RIDGE By: I Name: Jerry DiTullio Title: Mayor ATTES Name: Michael Snow Title: City Clerk Approved as to Form Gerald E. Dahl, City Attorney m lam Zabawa Letter to Young dated June 11, 2010 Lit—tl—lcllecjl In 06/22/10 08:36:49 City of Wheat Ridge Page bp340-iq ESTIMATE OF VALUATIONS AND FEES jschumacher THE FOLLOWING INFORMATION ARE ESTIMATES ONLY AND NOT ACTUAL VALUES. CODE-- DESCRIPTION___. - - - -- VALUATION _,___.____FEE ___USE TAX prm Permit Fee 3,776,651.00 20,484.70 0.00 rvw Plan Review F 3,776,651.00 13,315.06 0.00 totva Total. Valuati 3,776,651.00 0.00 0.00 use Use Tax 3,776,651.00 0.00 67,979.72 TOTAL VALUATION: 3776,651.00 FEES VALUATION: 3776,651.00 PERMIT FEE: 20,484.70 USE TAX: 67,979.72 OTHER FEES: 13,315.06 TOTAL FEES: 101,779.48 Page I of 2 At the direction of Mayor and Council and our City Manager's office, we are moving forward processing a request from the SRC to abate certain building permit fees and use tax through the BDZP. Attached to this e-mail are the following: 1) a letter from Randy directing the SRC to make application; and 2) a response letter, with attachments, from the SRC. There may still be some holes in the information that we need from the SRC, but generally, it appears to cover what was requested in Randys letter. We need to begin drafting an agreement and packaging this request for City Council consideration in late July or early August. The code amendment that is proceeding to allow the waiver of building use tax is scheduled for public hearing on June 28, with an effective date of 15 days after publication, which I believe will be July 16, if published in the July I Transcript. So, we could process this request at City Council on August 9, which is also the date tentatively scheduled to approve the Subdivision plat for the SRC project. Procedurally, should we have two action items, one creating the BDZ for this area (likely limited to just the SRC project area) and a second item approving the Agreement that is contemplated in the program for the specific abatement for the SRC (requires a public hearing)? As we move this request forward, there is an understanding that the request from the SRC (as a non-profit organization that does not directly generate future sales and use tax), there may be the potential that City Council rnay need to grant specific waivers to certain aspects of the BDZ Program. The granting of waivers is contemplated in the program (at Section 22-93(c)) and requires a vote of Council and a finding of substantial public benefit. Exactly how we package these policy issues will require further analysis and discussion, The primary purpose ofthis e-mail is twofold: 1) request from City Attorney's office a draft of an agreement between the SRC and the City, as outlined in Section 22-94; 2) a recommendation as to how to package these items for a future City Council agenda (tentatively August 9) For example, would we have Council consider a Resolution establishing a BDZP for certain property (can use legal description fi pending subdivision application) and a Motion to approve an Agreement taller conducting a public hearing). Please let me know if I can answer any questions. Thanks. Ken lohnstone, AIC 1 CommunitV Devc'lopmen� DII ": ' i00 W, 29di A�ODUC W Rid'�4e 8 24 7/8/2010 Page 2 of 2 ( It �fl W CONFIDENTIALITY NO TIC LThis e-mail Contains busilicss-confildenual information. It is uumled only for the use ofthe indiVidUal OVCutity named above. If you are not the intended recipiclu, you arc notified that any disclosm Copying, distributioll, e1CCII'MuC sl0l M' USt OfthiS COluulUuiCWi0u is, piobibited. If you received this communication in crror, please notify us immediately by c-mail, attaching the original message, and delete the original Inessage front your Computer, and any network to which your compuler is connected. Thank you, MCEM City of /�P a �s vr, 4 C-1 ITEM NO- - a DATE: June 14, 201 alk TITLE: COUNCIL BILL NO. 10-2010 - AN ORDINANCE VAl' err isTAFtemplate June 14, 2010 Page 3 COMMENDED MOTION: I move to approve Council Bill No. 10-2010 on © reading, order it published and set the public hearing for Monday, June 28, 2010 at 7:| |p . in City Council Chambers, and that it wi take effect 15 days after publication." I am Mimi Ing reasonts) Iworm-mosullsomija Us CITY OF WHEAT RIDGE, COLORADO INTRODUCED BY COUNCIL MEMBER Council Bill No. 10 Ordinance No. Series 2010 Section 22-68 of the Wheat Ridge Code of Laws is amended by the addition of a new subsection (c), to read as follows: 1 NO 1 01 ollo I L. I I I K* tz I g 1 6111:14 ATTACHMENT 1 Section 3. Effective Date. This Ordinance shall take effect fifteen (15) days after final publication, as provided by Section 5.11 of the Charter. INTRODUCED, READ, AND ADOPTED on first reading by a vote of — to on this 14th day of June, 2010, ordered published in full in a newspaper of gene". circulation in the City of Wheat Ridge, and Public Hearing and consideration on filin passage set for the 2e day of June, 2010 at 7:00 pm., in the Council Chambers, 75 West 29 Avenue, Wheat Ridge, Colorado. READ, ADOPTED AND ORDERED PUBLISHED on second and final reading a vote of to this _ day of 2010. 1 Mayor on this day of 2010. J er r y DiTullio, M a y o r Michael Snow, City Clerk NMZE��# First Publication: Second Publication: Wheat Ridge Transcript Effective Date: City of Wheat Ridge Municipal Building 7500 W. 29"' Ave. Wheat Ridge, CO 80033-8001 P: 303.235.2819 F: 303.234.5924 ME= Following is a summary of the program to assist you in drafting your letter of intent. It also calls attention to the specific information we need from you to be able to draft the agreement and package the application for proper City Council consideration. iTlYing ssues, or concern to Me I in T11F, legisiati declarations: I 1. Expansion of employment opportunities. In your letter, please identify the addition employment that will ♦ generated through the construction process and how nLany- additional employees will • located at the facility at build out. Salary information would be helpful. www.d.w heats idge.coms 2. Redevelopment and revitalization of vacant land to address blighting influences, including lack • adequate drainage facilities. In your letter, please describe how your project will represent a, positive investment in a neighborhood needing reinvestment and also consider adding language regarding the stormwater detention and managginent with the prcjgcL 3. The project will have spillover benefit of creating additional businesses generating sales and use tax. In your letter, please discuss how yqu think y—our, p!:oiect addresses this issue. One suggestion would be the volume of traffic in terms of persons visitin the facifily and the likelihood they mgy stop at other Wheat Ridge businesses in the course of traveling to and from the SRC. Ill III I I I I I I Ill 1 111111 RIM I lillip I plll�� I I JU E. U" I t 0" HN d H W i Is I RX41 11 Lai I a by L'i MW —Mxtiol Lasth we neck building permit and use tax fees. The City Council may waive all or a portion of those taxes and fees. Please indicate how much of a fee tax waiver you anticipate requesting. Page I of 2 Kenneth Johnstone From: Kenneth Johnstone Sent: Wednesday, April 21, 2010 1:09 PM To: Randy Young; Patrick Goff; Ryan Stachelski Subject: SRC - Use Tax and Building Permit Fee Waivers Sensitivity: Confidential Gentlemen, I have taken a closer look at the Business Development Zone program code language, as well as the proposed Development Incentive Waiver Program and don't think either is a perfect fit for the request that we are anticipating frorn the SRC. That said, I think we all know that we need to come up with a process that allows Council to make the decision whether to provide such a waiver or partial waiver Some options: I. Pretend the SRC request for abatement of a portion of their use tax and building permit fee is consistent with the Business Development Zone Program. We would have to bluff our way through that analysis (keep it brief). This option would also require the SRC to pull together all application, document specific costs related to public or public related improvements and the City would need to draft all agreement. I am also concerned with the precedent this would set in terms ofany future requests to use that program, though we could hope manage that concern through our soon to be unveiled incentive program. 1 Amend the proposed Development Incentive Waiver Program (drafted by Dahl) to be more tailored to the SRC request. Currently this is drafted to apply to '*commercial" or "industrial" development or redevelopment. To the extent that the Business Development Zone program already appears to cover that type of development, I would propose that we could modify the current draft to apply more to projects creating "community benefit" or "providing needed services", etc. This might not have broad applicability for future projects, but would create another too] that is different than our existing tools. One concern with this approach would of course be the future applicability to the Exempla, campus. 3. The Business Developrilent Zone Program actually has a provision that specifically authorizes Council to make exceptions to the rules of the program by 'xi vote of Council. We could call a spade a spade and just acknowledge that Council would be making an exception to the strict interpretation of that program for a non-profit that is making a significant investment ill all underserved neighborhood, etc. I'm certain these aren't our only options and none is particularly attractive. We call perhaps discuss more next Monday morning when we meet. Is everyone available? Ken Johnstone, AICP Community r)eV6)p1n('11t Direclof 7500 W, 29th Avenue Wheat R4g, e, ( olorado 80011 ("Hilce 1 '03-215-2844 I ax: 303-234-2,92-1 , ,N Ea w,c i, wheairidgvxom. 4/21/2010 Page 2 of 2 1� I v DI vi 14 iwml s4 CONFIDENTIAHTY NOTICE: This c-nmil contains business-confidential inl'ormation. It is intended only for the use of the individual car entity maned above. if you are not the intended recipient, you are notified that any disclosure, copyiug, distribution, electronic storage or rase ear this Communication is pr(:,4ubitcd. Il'you received this communication in error, please notify us in"uediately by e-mail, attaching the original message, and delete the original messag'c lions your computer. and any network to which your computer is connected. J liank you, 4/21/2010 Incentive Policy and Guidelines L Discussion wltf, 1 � �• AN Oil City of Whoiitl%gg, 6Torado r' 1 Wheat Ridge City Council t / J 19 Apri1201 0 A 7:00 p.m. _ - ► Formal policy and guidelines for qualifying projects ► Defensible process for granting incentives (participating) "ciency for staff ance community goals ... based on the belief that positive economic growth and stabilization will result from the provision of incentives packaged to attract new investment and reinvestment ... Who will use it? - Any entity, private, public, non - profit or partnership of these that is requesting City assistance in advancement of a project What partner entities are mentioned in the Policy? Renewal Whe e , W R2020 Others Where will it live? To Be Determined , What will Council's role be? Council will continue to approve specific partnership terms, using the Policy as a platform for decisions ❖ Forces private sector to understand the City's goals before' asking for assistance .• - . Sends the message that City is open to partnerships, but that rojects seeking assistance must . be meritorious., •:• Streamlines decision - making., 10 ► Urban Renewal (Tax Increment Financing) ► Infrastructure Cost Participation ► Pedestrian Enhancements and Linkages ► Operating and Maintenance Costs ► Tax Abatement and Rebates ► Tax Exempt Bond Financing ► Local Grants ► Low Interest Loans ► Federal and State Grants ► Predevelopment Due Diligence K r µ ► Parking Districts ► Loan Pools ► Project Participation ► Business Relocation / Retention Assistance ► Development Approval Facilitation Incentive Policy (cont'd) 4 5 1. Development program addresses a market opportunity 2. Demonstrates a quantifiable need for public resources 3. Provides an opportunity to link activity centers , 4. Suggests ability to leverage public investment 5. Located adjacent to physical features that will enhance liketiho_od of success 6. Presents potential for gateway improvement 7. Favorable ownership patterns-' 8. Presence of unified stakeholders 9. Evidence of stability in property values ~ 10. Ability to access additional funding 11. Addresses a demonstrated community need 12. Advances municipality sustainability goals ► Refine Incentive Policy (council, Renewal Wheat Ridge and ► Adopt J Accept Catalyst Project Criteria W. repare Process Diagram :x Share with Partner Organization City of j�'Wh6attk e Or-FICE OFTHE CITY MANAGER SUBJECT: Economic Incentive Policy and Guidelines I. Mayor's proposal and memorandum dated March 15, 201 2. Jerry Dahl memorandum dated April 1, 201 3. Leland Consulting draft Economic Incentive Policy City of _�9rWh6atR,Ldgc OFFICE, OF rFIE MAYOR TO: City Council FROM: Jerry DiTullio, Mayor Council Member Stites DATE: March 15, 201 SUBJECT: Proposed Partial Use Tax Waiver Program for City Council BACKGROUND Example: Valuation of a given project: .60 of project: Use Tax: .03 X $600,000 $1,000,000 $ 600,000 $ 18,000 Analysis Below is a Strengths, Weaknesses, Opportunities and Threats (S.W.O.T.) analysis on implementing a vendor fee. Strengths • Creates a financial incentive tool which may be used by City Council to attract quality development or redevelopment projects. • At least 25% of the calculated use tax is still collected by the City on any given project City Council March 15, 20 Page 2 over $5,000 (See recommendations below). Tool is used on a case by case basis and does not set precedent on any future projects. • Loss of hard revenue to the City. • Any use tax waivers by City Council are both a quantitative and subjective decision Opportunities • Program promotes the City of Wheat Ridge to the business community by fostering good will and positive working relationships. • Makes the City of Wheat Ridge more competitive with its neighbors in attracting quality development and redevelopment projects. UIT27M * Council will be accused of micro management RECOMMENDATION As the proposed program relates only to a Council-permitted waiver of a portion of use tax, this proposal could be written as a new Code Section 22-69, appearing as the last section in the present division three of Chapter 22, relating to the use tax. The following is a recommendation of this proposed language: Section 22-69 Development Incentive Waiver Program. a. Waiver PEogram Established: There is hereby established a development incentive waiver program (the "Program") under which qualifying taxpayers may request a waiver of a portion of use tax otherwise payable in connection with the development of a new commercial or industrial enterprise within the City or the redevelopment of an existing commercial or industrial enterprise. b. Elig�jbilijy: Any single taxpayer otherwise liable for payment • more than a total of ' 000 in use tax in any one calendar year pursuant • Section 22-66 and/or Section 22- 68, which tax is imposed in connection with the development or redevelopment of a new commercial or industrial enterprise within the City, shall • eligible to apply for a partial waiver of use tax pursuant to the program. c. Application: Taxpayers wishing to be considered for a waiver shall file an application on forms provided by the City Treasurer. The application shall, at a minimum, include the following: City Council March 15, 2010 Page 3 I . Such waiver is restricted to any amounts of use tax in excess of $5,000 use tax to be paid in a single calendar year, and 2. Such waiver may not exceed 75% of such eligible use tax in excess of $5,000. 1 1 1 1 decision of the City Council shall • final and non-appealable. e. Criteria: In making its decision, the City Council shall consider, in addition to other factors relevant to the specific application, the following criteria: 1. The economic impact of the proposed new or redeveloped commercial industrial enterprise upon the City, measured in property, sales and use taxes permitIces. 2. The number of new jobs created and/or saved 3. Any off site costs or impacts of the project. i Example of use tax waiver as proposed: Valuation of a given project: $1,000,000 .60 of project: $ 600,000 Use Tax: .03 X $600,000 $ 18,000 Total amount eligible to be waived By Council: ($18,000 — $5,000) X .75 $ 9,750 (up to amount) The Mayor's Office encourages City Council to at least move the proposed use tax waiver program forward to 0 Reading so the program can • debated in a transparent and open forum. Recommended Consensus: I would ask for a consensus directing the City attorney to draft an ordinance for I" reading which creates a use tax waiver program as detailed in the Study Session memo dated March 21 10 and as discussed at the March 20, 2010 City Council Study Session. M U R R A Y D A H L_ KUEGHENfWE15 9, RENALO LLP MEMORANDUM TO: Mayor and Council CC: Randy Young, City Manager FROM: Gerald Dahl, City Attorney DATE: April 1, 2010 RE: Development Incentive Program You have asked me to briefly outline the major components of an incentive program designed to encourage new commercial and industrial development, as well as redevelopment of existing properties. As I understand it, the proposal would be to give the Council the ability to grant waivers of sales or use taxes or development fees as an incentive. There is no provision in the Wheat Ridge Code of Laws specifically for such a program. This would be similar to the Business Development Zone Program, Code Sections 22 -85 through 22 -96. A copy of those sections is attached. Notice that program allows Council to waive eligible "city fees, charges and taxes limited to use tax on furniture and fixtures associated with the initial development or redevelopment project, use tax on building materials, building permit fees and zoning fees." The Business Development Zone Program does not allow waiver of sales or property tax. If Council does not want to use the current Business Development Zone Program, there are two options: (1) expand the eligible waivers under the Business Development Zone Program to include sales and property tax or (2) enact a new program. A new program could be written as a new Code Section 22 -130, appearing as a new Article IV of Chapter 22; Taxation. The following is a rough draft of this proposed language: Section 22 -130 Development Incentive Waiver Program a. Waiver Program Established There is hereby established a development incentive waiver program (the "Program ") under which qualifying applicants may request a waiver of a portion of sales tax, use tax, and /or any development fee or charge under Chapter 26 of this Code [ "Eligible Charges "] otherwise payable in connection with the development of a new commercial or industrial enterprise within the City or the redevelopment of an existing commercial or industrial enterprise. GED/W R/Finance /Sales &UseTax b. Eligibility Any single taxpayer otherwise liable for payment of more than a total of $ in Eligible Charges in any one calendar year, which charges would otherwise be is imposed in connection with the development or redevelopment of a new commercial or industrial enterprise within the City, shall be eligible to apply for a waiver pursuant to the Program. c. Application Taxpayers wishing to be considered for a waiver shall file an application on forms provided by the city treasurer. The application shall, at a minimum, include the following: 1. applicant name, address and corporate structure; 2. description of the new or redeveloped commercial or industrial enterprise to be located within the city; and 3. estimate of the amount of Eligible Charges which, absent this waiver, would be paid within a 12 month calendar year in connection with development or redevelopment of the enterprise. d. Procedure Applications for waivers pursuant to the program shall be submitted to the City Manager who shall confirm their completeness and eligibility for consideration under the program. Applications shall be scheduled for consideration by the City Council within thirty (30) days of their being determined complete and eligible. The City Council shall have the exclusive authority to grant or deny any application for waiver, in whole or in part, and may apply any condition to the waiver provided, however, that: (1) such waiver is restricted to any amounts of Eligible Charges in excess of $10,000 to be paid in a single calendar year, and (2) such waiver may not exceed 75% of such Eligible Charges in excess of $10,000. The decision of the City Council shall be final and non - appealable. e. Criteria In making its decision, the City Council shall consider, in addition to other factors relevant to the specific application, the following criteria: 1. the economic impact of the proposed new or redeveloped commercial or industrial enterprise upon the City, measured in property, sales and use taxes and permit fees; 2. the number of new jobs created; and 3, any off site costs or impacts of the project. GED/W R/Finance /Sales &Use rax DIVISION 5. BUSINESS DEVELOPMENT ZONE Sec. 22 -85. Program established. There is hereby established within the city the "Wheat Ridge Business Development Zone' program. Sec. 22 - 86. Legislative declarations. (a) The city council of the city hereby finds and declares: (1) That the health, safety and welfare of the people of this city are in large part dependent upon the continued encouragement, development and expansion of opportunities for employment in the private sector in this city; (2) That there currently exists in this city businesses or vacant land which require new development or revitalization opportunities to overcome conditions of unemployment, underemployment, net out - migration of the population, diminution of tax revenues, chronic economic distress and blighting influences such as, but not limited to, deterioration of business districts, deterioration of public infrastructures, traffic and drainage problems or sudden severe economic dislocations; (3) That by creating new development, redevelopment or expansion opportunities for busi nesses within the city the city council will increase the likelihood that new and improved _ Businesses will generate more municipal sales and use tax revenues for the city in the u urf"�' re "— (b) It is therefore declared to be the policy of the city, in order to provide incentives for private enterprises to expand or for new businesses to locate in the city, to develop a program which empowers the city council to designate portions of the city as a "business development zone" and to provide for the abatement of certain categories of fees, taxes and other business development- related charges for new development or redevelopment within such districts. (c) The city council has enacted this division 5 of article I of chapter 22 of the Code of Laws as a joint benefit to the public at large and to private owners for the purposes of reducing blight in our business districts and of providing the city with increased sales and use tax revenues generated upon and by properties improved as a result of this program and allowing owners and proprietors opportunities to improve properties which generate sales activities, which improvements make those properties more competitive in the marketplace and fi ither vide to owners and proprietors additional contingent sources of revenues for rading uch properties. (d) The city council specifically finds and determines that creation of this "business development zone" division and the exercise of the powers enumerated herein are consistent with and promotes the public health, safety and general welfare of the citizens of Wheat Ridge. (Ord. No. 888, § 1, 1- 13 -92; Ord. No. 1993 -947, § 1, 12- 13 -93; Ord. No. 1272, § 1, 12 -9 -02) Sec. 22-87. Definitions. As used in this division, the following phrases shall have the following meanings unless the context clearly indicates another meaning: (1) The phraseeligible city fees, charges and taxes shall mean and shall be limited to use tax on furniture and fixtures associated with the initial development or redevelopment "project," use tax on building materials, building permit fees and zoning fees. (2) The phraseexpected incremental future sales and use tax revenue shall mean the amount of the additional sales and use tax revenue, as projected by the city, expected to be generated during the council- designated time period from the time of completion of the "project' over and above the sales and use tax fees generated on the premises in the twelve (12) months preceding the application described in section 22 -88. ARTICLE I. SALES AND USE TAX* (3) The phraseowner or proprietor shall mean the record owner, tenant or operator of an individual business or, in the case of a shopping center, the owner of the real property upon which more than one business is operated. (4) Project shall mean the specific development or redevelopment expenditures which relate both to the abatement of "eligible city fees, charges, and taxes" and "expected incremental future sales and use tax revenues." (Ord. No. 888, § 1, 1- 13 -92; Ord. No. 1272, § 1, 12 -9 -02) Sec. 22-88. Participation. Participation in the business development zone program shall be based upon approval by the city council, exercising its legislative discretion in good faith. Any owner or proprietor of an established, proposed or newly purchased business, or the owner or proprietor of an existing business which wishes to expand, may apply to the city for inclusion within the program. Abatement or sharing of eligible city fees, charges, and taxes shall, upon approval of the application by the city council, be granted up to the amount of expected incremental future sales and use tax revenue to be generated by the project during the agreed to time period. (Ord. No. 888, § 1, 1- 13 -92; Ord. No. 1272, § 1, 12 -9 -02) Sec. 22 -89. Approval of agreement; use of funds generally. Approval by the city council of an agreement implementing the provisions of this division shall entitle the applicant to share in the eligible city fees, charges and taxes up to the amount agreed by the city council; provided, however, that applicant may use such amounts only for the purpose of developing or redeveloping the business within the approved business development zone, which purposes shall be specifically enumerated in the agreement provided for in section 22 -94 hereof. (Ord_ No. 888, § 1, 1- 13 -92; Ord. No. 1272, § 1, 12 -9 -02) Sec. 22 -90. Uses enumerated. The uses to which the eligible city fees, charges and taxes may be put by an applicant shall be strictly limited to those which are approved by the city council and relate directly to the development or redevelopment of businesses within the city, which developed or redeveloped businesses will generate more municipal sales and use tax revenues for the city in the future. Priority shall be given to all businesses which make application for inclusion within this program and who agree to utilize the eligible city fees, charges and taxes for the public or public - related purposes identified section 22 -78 of this Code of Laws. (Ord_ No. 888, § 1, 1- 13 -92; Ord. No. 1272, § 1, 12 -9 -02) Sec. 22 -91. increments, sharing of funds. The base figure for eligible city fees, charges and taxes shall be divided into twelve (12) monthly increments, which increments are subject to agreement between the parties and approved by the city council, and which increments shall be reasonably related to the amount of sales and use taxes generated on the premises in the twelve (12) months preceding the application received by the city for participation in this program. The accounting and payment provisions of sections 22 -79 and 22 -80 hereof are hereby declared to be applicable to any application approved hereunder. i,# + —.I /Ma . ') .,,..,: , aa ..,,,,,Ia„rn..tt 1 ^71) /1 1 1 n i 1 12 /12 n/1) nin ARTICLE I. SALES AND USE TAX* (Ord. No. 888, § 1, 1- 13 -92; Ord. No. 1272, § 1, 12 -9 -02) Sec. 22 -92. Capital improvement fund. The one (1) percent of use taxes earmarked for the capital improvement fund may be utilized in this business development zone program for public improvements so long as the same are within the meaning of the phrase capital improvements as defined in the voter - approved sales tax referendum previously held within the city, and provided the public improvements are found and determined by the city council to be capital improvements which could be provided by the city from the capital improvement fund but for the provision of such improvements by the applicant, (Ord. No. 888, § 1, 1- 13 -92; Ord. No. 1272, § 1, 12 -9 -02) Sec. 22 -93. Criteria for approval of application. (a) Approval of an application for inclusion in this business development zone program shall be given by the city council at a public hearing held as a portion of a regularly scheduled city council meeting based upon the following criteria: (1) The amount of expected incremental future sales and use tax revenue which [can] reasonably be anticipated to be derived by the city through the expanded or new tax generating business; , C : (2) The public benefits which are provided by the applicant through public works, public improvements, additional employment for city residents, etc.; (3) The amount, if any, of city expenditures which may be deferred based upon public improvements to be completed by the applicant; (4) The conformance of the applicant's property or project with the comprehensive plan and zoning ordinances of the city; (5) The agreement required by section 22 -94 hereof having been reached, which agreement shall contain and conform to all of the requirements of such section. (b) Approval of any application shall be made by motion adopted by a majority of the entire city council. (c) The city council may by three - fourths ( 3/4) majority vote approve exceptions to the provisions of this division when such exceptions are found to be in the public's interest and such exceptions provide substantial benefit to the city. (Ord. No. 888, § 1, 1- 13 -92; Ord. No. 1993 -947, § 2, 12- 13 -93; Ord. No. 1272, § 1, 12 -9 -02) Sec. 22 -94. Agreement required. Each application for approval to the city council shall be subject to approval by the council solely on its own merits. Approval of one application shall not require, or be deemed precedent for, approval of any other application. Approval of an application shall require that an agreement be executed by the owner and the city, which agreement shall, at a minimum contain: (1) A list of those public or public- related improvements which justify applicant's approval, and the amount which shall be spend on such improvements; (2) The maximum amount of expected incremental future sales and use tax revenue and the maximum time during which the agreement shall continue, it being expressly I-- .rn:t-- ......n ..,..._.....a- ia_r___I.._ .rrr-- 17:,,__.II r - rn'+Ii n>> n 1n 11 11�n /IN nI n ARTICLE I. SALES AND USE TAX* understood that any such agreement shall expire and be of no further force and effect upon the occurrence of the earlier to be reached of the maximum time of the agreement (whether or not the maximum amount to be shared has been reached) or the maximum amount to be shared (whether or not the maximum time set forth has expired); (3) A statement that this is a personal agreement which is not transferable and which does not run with the land; (4) That this agreement shall never constitute a debt or obligation of the city within any constitutional or statutory provision; (5) The base amount which is agreed upon by month, and the fact that if, in any month as specified, expected incremental future sales and use tax revenue received from the property does not at least equal such amount, that there shall be no sharing of funds for such month; (6) The base amount shall be agreed upon, which shall consider the use taxes generated by the property in question, or a similar property within the city in the event of a new business; (7) A provision that any expected incremental future sales and use tax revenue shall be escrowed in the event there is a legal challenge to this business development zone program; (8) An affirmative statement that the obligations, benefits and /or provisions of this agreement may not be assigned in whole or in any part without the expressed authorization of the city council, and further that no third party shall be entitled to rely upon or enforce any provision hereof; (9) Any other provisions agreed upon by the parties and approved by the city council. (Ord. No. 888, § 1, 1- 13 -92; Ord. No. 1272, § 1, 12 -9 -02) Sec. 22 -95. Joint venture liability. The city council has enacted this business development zone as a joint benefit to the public at large and to private owners for the purposes of providing the city with increased tax revenues generated upon and by properties improved as a result of this program; public improvements being completed by private owners through no debt obligation being incurred on the part of the city, and allowing applicants an opportunity to improve properties which generate sales and other business activities. The city council specifically finds and determines that creation of this business development zone is consistent with the city's powers as a home rule municipal corporation, and that exercise of such powers in the manner set forth herein is in furtherance of the public health, safety and welfare. Notwithstanding any provision hereof, the city shall never be a joint venture in any private entity or activity which participates in this business development zone program, and the city shall never be liable or responsible for any debt or obligation of any participant in this business development zone. (Ord. No. 888, § 1, 1- 13 -92; Ord. No. 1272, § 1, 12 -9 -02) Sec. 22 -96. ESTIP and TIF. If the applicant, owner or proprietor participates in the city's Enhanced Sales Tax Incentive Program ( "ESTIP ") or if the owner's or proprietor's business is located in an urban renewal area in which all or a portion of sales tax revenues have been pledged as part of a tax increment financing program, he or she shall be ineligible for participation in this business development zone program. (Ord. No. 888, § 1, 1- 13 -92; Ord. No. 1272, § 1, 12 -9 -02) i * s RENEWAL if WHEAT RIDGE Incentive Policy & Guidelines GENERAL PURPOSE AND OBJECTIVES �I) The City of Wheat Ridge ( "City ") believes that certain types of investment in the City lead to positive economic growth and stabilization while also advancing a public benefit. As a result, in accordance with the provisions and conditions of this policy statement ( "Policy "), the City will, under specified criteria, on a case -by -case basis, consider the granting of incentives in order to attract new, or improve existing commercial and /or non - commercial assets' and to encourage the growth of Wheat Ridge in accordance with community- adopted goals and objectives. The City also acknowledges that different areas of Wheat Ridge face varying degrees of challenges in attracting private sector capital for quality (re) development. Therefore, the City has designed this Incentive Policy to: provide greater assistance to meritorious projects in areas of Wheat Ridge where market activity either has, or has the potential to, lag behind community needs and goals; and / or, raise standards of development, in an effort to level the financial "playing field" and effectively ready the environment for catalyzing investment. (See discussion of Catalyst Investment Areas.) Specifically, it is the objective of this Policy that the City's strategic investment of its incentive resources improve Wheat Ridge's entire portfolio of community assets and facilitate the development and redevelopment of projects that provide a public benefit. Further, it is the City's intent to manage the implementation of the Incentive Those investment projects (new development and redevelopment) which advance the City vision. RENEWAL WHEAT RIDGE Policy so that incentives are fairly distributed across geographic and market sectors and appropriately applied based on the community vision. This Policy provides private property and business interests and advocacy entities with tools to meet the challenges presented by (re) development and particularly infill development and redevelopment. Resources that are available through the City are designed to accomplish the following guiding principles: Guiding Principles Promote development that conforms to the community's vision as expressed in Envision Wheat Ridge, the City's Comprehensive Plan, and other widely accepted community plans. Provide preference for projects in targeted areas that: provide a public benefit, are vibrant. expand the community's residential base, connect concentrated areas of uses. emphasize sustainability in design and building materials, promote local flavor and economic diversity. and support transit- oriented development utilizing multiple modes of transportation. • Generate positive financial impacts and effectively leverage private dollars. • Provide short-term assistance for eligible projects that have verifiable financing gaps. Capitalize on near or mid -term market opportunities. • Provide assistance for the minimum possible length of time. The incentives offered under this Policy are not intended to replace other project financing from private or public sources. Rather, it is intended to be a flexible resource that spurs worthy projects by bridging funding gaps which may be created by the difficult and sometimes costly 2 RENEWAL v "�r11t -G�► NtIC� �. nature of such purposeful developments due to geography, product mix and / or development standards. The primary incentive programs available include: • Land Transactions • Urban Renewal (Tax Increment Financing) • Infrastructure Cost Participation • Pedestrian Enhancements and Linkages • Operating and Maintenance Costs • Tax Abatement and Rebates • Tax Exempt Bond Financing • Local Grants • Low Interest Loans • Federal and State Grants • Predevelopment Due Diligence • Fee Waives • Special Districts • Parking Districts • Loan Pools • Project Participation • Business Relocation / Retention Assistance • Development Approval Facilitation 3 RENEWAL WHEAT RIDGE CITY PARTICIPATION The City's decision to invest in a project centers on a number of important findings. Four of the key determinants include: • number and type of public benefit elements (direct or indirect); • potential of the project to succeed; • advancement of the Policy's guiding principles (as presented above); • demonstrable financial need; and, • evidence that the project accomplishes the goals of the community as specified in Envision Wheat Ridge, (list other relevant community plans) and all other Council - approved community plans related to the growth and development of the City (see Catalyst Project Investment Areas). Once these criteria are satisfactorily addressed, City staff will work with the applicant to further analyze specific details about the project's financial need and other factors as warranted. The financial need of the project will be determined based upon the nature and extent of the gap between total project costs and amount of private investment to cover those costs, assuming a market - average rate of return on the private investment. Based upon this information, City staff will then determine the extent of the City's participation in the project. The level of City participation will be dependent, in part, on the fiscal impact of the project to the City and expected private investment leverage resulting from its participation. Another factor will include the extent of public benefit the project provides. The map below illustrates the City's target areas for catalyst private investment. Final documentation for meritorious projects will be 4 y� RENEWAL E WHEAT RIDGE packaged along with City staff recommendations for final review and consideration by City Council. CATALYST INVESTMENT AREAS Together with Renewal Wheat Ridge, City Council has identified geographic areas of the community within which to target its incentives. Collectively they acknowledge that different geographic areas face varying degrees of challenges in attracting private sector capital for development consistent with the community's goals and objectives. Wheat Ridge's commercial corridors have demonstrated a range of challenges related to retrofitting the existing physical fabric which is not as prevalent in other locations with larger property assemblages, sufficient lot depths, and compatible land uses. Therefore, while projects outside these areas might prove worthy, the City has specifically targeted its incentives to provide greater assistance to catalyst projects in areas of Wheat Ridge where market support has either lagged behind community needs and goals, or where economic conditions are fragile or susceptible to market forces. What follows describes the Authority's and City's catalyst investment areas and the criteria by which they will be evaluated. The vision for each of these target investment areas are presented below. Target Investment Areas City of Wheat Ridge Comprehensive Plan (Envision Wheat Ridge) A general plan for the City known as the Envision Wheat Ridge adopted in the Fall of 2009. The plan specifically states, "Wheat Ridge will be a prominent and sustainable city, with a 5 RENEWAL WHEAT RIDGE prosperous future built upon the foundation of the community's major assets (comfortable neighborhoods, unique culture and history, abundant open space, terrific views, and proximity to Denver and the Rocky Mountains). The City will grow a broad and resilient local economy that provides family wage jobs and thriving business districts to balance with the community's friendly and established neighborhoods. In addition, Wheat Ridge will offer convenient transportation options, valuable services, and high quality of life for all residents. The City recognizes that attaining this vision will require an aggressive approach and willingness of the community to embrace change." Insert vision statements from urban renewal plans and / or description of targeted redevelopment areas identified in Envision Wheat Ridge. Catalyst Project Criteria The following comprehensive list of characteristics describes those elements common to most of the catalyst investment areas and used by the City in their identi ication. Projects outside these areas should possess a majority of the following characteristics, but at a minimum, show evidence of a market opportunity and / or development project with potential in the near -or long term. Characteristics include: 1. Development program addresses a market opportunity (void or niche) in the near- or long- term. z Exceptions include those areas determined by state or federal guidelines. C.a RENEWAL vV'y ?F ft1 rri;�i i 2 Demonstrates a quantifiable need for the public resources in order to make the project feasible (forms will be provided to applicants). 3. Provides an opportunity to strengthen and link existing or planned districts or activity centers. 4. Suggests ability to leverage existing or planned public investment. 5. Located with adjacency to physical features including parks and open space, that will enhance their likelihood of success. 6. Presents potential for creating entryways or gateway project. 7. Site possesses favorable ownership patterns including existing assemblage, public acquisition opportunity, motivated seller, etc. 8. Presence of unified, energetic stakeholders that are willing to advocate for project. 9. Evidence of stability in property values or upward trend in adjacent investment. 10. Located in an area that is able to access additional funding (beyond public resources). 11. Addresses a demonstrated community need, both perceived and quantified including workforce and J or affordable housing. commercial incubator space, etc 12. Advances municipal sustainability goals. In order to be considered for City incentives, a project falling within a catalyst investment area must advance and exceed stated community goals and positively address the above characteristics applicable to their location. A project possessing a majority of the above characteristics, yet outside a preference area, may also be considered for City incentives, but will be expected to undergo a greater level of scrutiny to ensure that it is consistent with stated goals and objectives and Policy Guiding Principles presented herein. 7 RENEWAL WHEAT RIDGE Catalyst Investment Defined This Incentive Policy defines catalyst investment areas as follows: "A catalyst investment area is an 'urbanized' place that has a concentration of jobs, housing units, commercial uses, public spaces, public transportation, and / or pedestrian activity and a sense of place. These areas are frequently located at significant activity nodes. Predominant land uses are commercial, non - commercial and public. Within these relatively compact geographic areas, different land uses are found side by side or within the same structures. The mix of uses are often located in developments with minimal setbacks, reduced parking requirements and taller structures, all in an effort to achieve higher densities necessary to support multiple nodes of transportation and pedestrian activity (where relevant), private investment and a sense of place. These areas are catalysts for public and private investment and economic activity, effectively building off the strengths of the surrounding area and connecting to surrounding uses. Implementation and management of catalyst areas is generally the responsibility of a combination of entities including business organizations, special districts, neighborhood and other interest groups, and individual property owners." BENCHMARKING THE MARKET The ability of the Policy to successfully marry market opportunity with market investment will hinge upon continual feedback to the City by representatives of the real estate and business investment markets and incentive recipients. Therefore, the City has an expectation of 8 RENEWAL WHEAT RIDGE investment partners to provide information on the performance of projects during start -up and through stabilization The receipt of project information beyond the period during which the City participates will be appreciated, but not required. Access by the City to this information will assist in staying current on market conditions and expectations among different geographic and market sectors, as well as provide the basis for refinements to the Policy and the City's decision - making parameters for participation in future projects. INCENTIVES For those incentives where developers are directly involved and in direct receipt of public dollars, the City maintains a policy that the developer pledge the following: A participation goal for minority and disadvantaged businesses to provide services and supplies. A stated goal to provide construction and /or permanent employment opportunities for Wheat Ridge residents Award of any incentive will be contingent on approval of the project by City Council. Land Transactions Urban Renewal (Tax Increment Financing) Infrastructure Cost Participation 3 The total value of the incentives will only be available at a level not to exceed the incremental dollars generated by the planned investment as determined by the City through regular review of the project's performance (open books). Select information will be kept confidential from the general public. RENEWAL WHEAT RIDGE P'c.ym.e. 1h ..... Q,- l • Pedestrian Enhancements and Linkages • Operating and Maintenance Costs • Tax Abatement and Rebates • Tax Exempt Bond Financing • Local Grants • Low Interest Loans • Federal and State Grants • Predevelopment Due Diligence • Fee Waivers • Special Districts • Parking Districts • Loan Pools • Project Participation • Business Relocation / Retention Assistance • Development Approval Facilitation 1. Land Transactions Purpose of Incentive The purpose of this incentive is to assist developers with land acquisition and assemblage for meritorious projects in targeted investment areas. 10 RENEWAL "veir r "Li Project Use • The City may make available publicly -owned lands in priority preference areas for projects, which advance the guiding principles of this Policy. • The City may initiate the development of surplus public lands as a joint venture with private developers. • The City may consider contributing publicly -owned land for appropriate infill projects, or swapping publicly -owned property for developer -owned parcels. • The City may pay for costs associated with Phase I environmental assessments on publicly -held properties, and where possible will, complete these analyses and include the appropriate documentation related to this assessment prior to disposition of the property to private interests. Note: This effort is often completed under the incentive Predevelopment Due Diligence. Limitations As identified through policies of the City Council. 2. Urban Renewal (TIF) Purpose of Incentive Tax Increment Financing (TIF) is a tool authorized under Colorado State statute by which local governments can publicly finance the rehabilitation or demolition of existing structures, construct or install new streets, utilities, open space and other improvements 11 RENEWAL ',, ►ir AT P}r'o' 11' It. ." .. that serve a public purpose. Expenditures are made within a defined area called an urban renewal area. The tax increment is derived from the difference in appraised value between the year in which the area and TIF was formally established by Council (base years and each year is in existence, for a period not to exceed 25 years. The increment is generated by real property taxes resulting from new construction and increases in market values due to public improvements and redevelopment efforts. Project Use • The City will consult with property owners within a designated area to ensure that TIF is awarded to meritorious projects. Note: This is accomplished through creation of an urban renewal area where the project is located. • The City may provide a rebate to the developer of the property tax increment or pledge the increment as payment of principal and interest on bonds issued to fund the improvements. The City may also elect to retain tax increment to meet operating or other demands within the TIF area. • The percent of TIF revenue made available to projects will be negotiated on a case- by -case basis and considered relative to those factors described in this Policy's guiding principles. Limitations TIF can only be used on expenses that provide a public benefit. Eligible project costs include: capital costs, financing costs, real property assembly costs, professional service costs for public improvements, imputed administrative costs, relocation costs, 12 �; RENEWAL WHEAT RIDGE organizational costs, interest before and during construction, and costs associated with operating the urban renewal area and project facilities. 3. Infrastructure Cost Participation G Purpose of Incentive i he City may elect to participate, either through a formal program or on a case -by -case basis, in the cost of construction and / or maintenance of infrastructure that will benefit multiple projects and properties. Project Use • The City will work with the developer and / or property owner to identify all on -site and off -site capital improvements necessary to service and / or support the project. • Where dollars have already been earmarked (i.e., in the City Capital Improvement Plan) or quantified; and public expenditures are imminent, the City may elect to contribute these dollars to the project. • Where dollars have not been earmarked, but improvements are considered to benefit from the project and area, the City may still elect to contribute dollars to the project. • The City will consider the quality of materials and their consistency with prevailing policies, standards and regulations. In instances where the City desires to raise standards of design and / or development, it may elect to participate in the cost of delivering these improvements. 13 RENEWAL WHEAT RIDGE Limitations 4. As identified through policies of the City Council. Pedestrian and Roadway Enhancements and Linkages Purpose of Incentive \ 0 Q(Y4 It is the City's intent (and past practice) to encourage pedestrian connections, access to multiple modes of transportation and linkages among activity areas both within the City's economic core and surrounding neighborhoods. To this end, the City may participate in projects that advance this objective in the form of expending capital for infrastructure and maintenance of public improvements. In the context of the catalyst areas, public improvements are considered to encompass streetscape and roadway improvements that encourage pedestrian and transit access, as well as public space amenities. Project Use The City may use CIP, bond and / or general funds for redevelopment within the catalyst areas to leverage grants and private funding sources. Grant programs are often administered by the Federal Highway Administration, the Federal Transit Administration, and the Colorado Department of Transportation. The City's goal is to use funds to leverage private dollars, yielding investment for streetscape improvements in the near - term. 14 RENEWAL WHEAT RIDGE Limitations The City will identify and evaluate projects as grant and /or other funds become available. Projects will be selected according to the criteria established by the grant program and any additional criteria that further the goals of this Policy and other adopted plans and policies. These criteria may include, but are not limited to, the following: Consistency of proposed improvements with the purpose of the grant program Equitable distribution of funds among the catalyst areas (over time) Ratio of private investment to public investment Limitations In order for the City to expend funds, resources must be in support of a catalyst project that advances the vision for that area. 5. Operating $ Maintenance Costs See discussion above under Incentive 4. 15 RENEWAL WHEAT RIDGE 6. Tax Rebates Purpose of the Incentive Tax rebate is a tool which allows eligible bu iness interests to be reimbursed all or a rttail usC. �a7� . M u5f_ t � portion of a�+ �ierem taxes for a specified period of time. The purpose of this incentive can be to minimize expenses associated with starting and / or relocating a business or moving a development towards stabilization as expeditiously as possible. Project Use Although the City may consider all applications for tax rebates that meet the eligibility requirements set forth in this Policy and compliant with relevant restrictions stated in the City Charter, it is especially interested in development projects that: • Result in the creation of new full -time jobs for Wheat Ridge residents • Increase the number and diversity (product type and price point) of residential units • Result in developments with little or no additional cost to the City • Have a positive impact on the larger Wheat Ridge community Retail Sales - Project Use The City will provide a rebate of a percentage of the sales tax increment attributable to appropriate capital improvements. 16 RENEWAL WHEAT rdlf:CA I.I .,,_.. n , . . The rebate shall be made either to the site developer as a reimbursement for site improvement expenses or rent discounts offered in an effort to reach project stabilization; or to the retail tenants of the improved center in order to assist in relocation or expansion - related costs of the tenants, or facade or signage improvements. The percent of the City's sales tax rebate and length of time will be negotiable. Limitations Until an urban renewal area is established, or City Council adopts a rebate policy, this incentive can only be granted on a case -by -case basis with approval by a majority of City Council. 7. Tax Exempt Bond Financing Purpose of Incentive The purpose of this incentive is to provide long -term financing for select economic development projects. Bonds are issued by the City and exempt from state and local taxes. Project Use Bond revenue can be used for specific purposes, as determined by the bond documentation, including right -of -way improvements (public and private), parking, 17 RENEWAL WHEAT RIDGE streetscape, infrastructure, as well as land acquisition. The City may provide support to projects that meet the City's bond documentation criteria for funding. The funds will be available in the form of 1) loans, 2) loan guarantees, 3) equity investments, and / or subordinated debt for construction, or, 4) permanent financing. Bond revenue may also be available to projects located in an urban renewal area. Criteria for funding within an urban renewal area are defined in the urban renewal plan for that area. Limitations Limitations will be largely dictated by the rules and regulations associated with the bond issuance and the terms and conditions that the City may ask developers to pledge when issuing the bonds. Private Activity Bonds Private activity bonds are designed to provide taxable and tax - exempt bond financing primarily for local improvement projects. Private Activity Bonds (PAB) are bonds that can be issued for specific purposes, as determined by federal tax law. PABs are not a direct source of funding, but rather a tax- financing mechanism. 18 REfV EWfii.L 8. Local Grants Purpose of Incentive The purpose of local grants is to reimburse private developers for the range of expenses which may contribute to a financing gap yielding projects financially infeasible. To this end, the City will also be sensitive to the taxable implications these grants may have for the developer and where possible, use transfer mechanisms (i.e., soft loans, accrual notes, etc.) which result in a favorable financial impact. Limitations This incentive is often used as a gap- financing tool of last resort. The use of this incentive is for projects facing extraordinary impediments to development and offering significant positive impact to the community and the surrounding area where the project is located. Limitations on how this incentive is used are predicated on the source of the funds and terms and conditions of the award to the City and the project. 19 RENEWAL WHEAT RIDGE 9. Low Interest Loans Purpose of Incentive The purpose of this incentive is to provide funds to developers at a lower rate of interest compared to conventional loans. This incentive effectively reduces the financial gap of a project, thereby enhancing its financial feasibility. 96, 151 wa xw) Project Use The City may facilitate the provision of this type of support to development projects that meet the City's criteria for funding. Loans can be used to support commercial, residential or mixed -use development projects, for both rehabilitation and new construction related expenses. Types of loans available include predevelopment, interim financing and bridge. The program can be expanded to include a set -aside for fagade improvements in targeted areas. Limitations Limitations will be largely dictated by the rules and regulations associated with the funding source and the terms and conditions of the specific award. 20 RENEWAL WHEAT RIDGE 10_ Federal and State Grants Purpose of Incentive The fundamental premise of the City's Incentive Policy is to catalyze investment and reinvestment in targeted areas. Whereas experience has proven that "catalyst projects" serve to prove to private sector investment markets that demand for community- beneficial developments exists; they set a positive precedent for future development. Given the importance of supporting catalyst projects in priority areas, the City may, at its sole aiscretion, elect to compete for federal or state grants to support deserving real estate development projects. Project Use if awarded, the City may provide this type of support to projects in an effort to close a demonstrable funding "gap." Use of the funds will be contingent on the project's ability to advance key community goals including sustainable development principals, as well as the guiding principals of this Policy. Grant funding is generally used for infrastructure improvements, environmental remediation, pedestrian and streetscape enhancements in the public right -of -way, and other costs as appropriate to the funding source. However, they may also be used for a range of economic development initiatives including business retention, relocation and expansion initiatives. 21 RENEWAL WHEAT RIDGE Limitations Limitations on how this incentive may be used are often predicated on the source of the funds and terms and conditions of the award to the City and the project. City Council will determine which projects they will submit for competition. Submittal is not a guarantee of City funding and City participation will be contingent upon award of grants. 11. Predevelopment Due Diligence Purpose of Incentive The purpose of this incentive is to provide property owners and developers with market, financial, design, engineering and other related information in an effort to both educate them about opportunities, as well as save them pre - development dollars. Project Use The City will establish an electronic "library" of studies and reports solicited by, and shared with, the City in the context of development and investment projects in targeted areas. As these studies and reports are made available, they will be submitted to the library for use by the private sector. 22 RENEWAL WHEAT RIDGE The City may also elect to dedicate staff or retain the services of consultants and other professionals at no cost to the developer in an effort to save them pre- development dollars, while ground - truthing project feasibility. Limitations As identified through policies of the City Council. 12. Fee Waivers ° Purpose of Incentive The purpose of this incentive is to encourage investment by waiving of delaying development fees until the developer sees a positive cash flow. Project Use The City stay waive or delay project - related development fees on a case -by -cast: basis for meritorious projects Based on preliminary consideration by City staff, tools / resources presented in red may not be available and will require additional discussion. 23 RENEWAL WHEAT RIDGE I. ., . 1-I1flitations Developers will need to negotiate with the City a specific threshold (to be deters onr & (h,rt they can demonstrate in order to be eligible for waivers or delays. 13. Special Districts and Improvement Districts Purpose of Incentive Special districts are special - purpose units of local governnient created to provide a service or services to a specific group of constituents. Assessed taxes are exclusively properly taxes. Improvement districts allow a municipality to levy and collect special assessments on property that is within the City or the City's extraterritorial jurisdiction (ETJ) to be used in the district. The assessment can be used to find things including streetscape. infrastructure. security. parks. recreation, parking and other public improvements Project Use • In order for a special district to be established 51 of the property owners must submit a petition request. • Upon receipt of the petition request and establishment of the dishict. the City Council will appoint an Advisory Board to prepare and advance an improvement plan for the area 24 RENEWAL WHEAT RIDGE ■ Upon creation of the district, property owners will be assessed an addrlion,;: f(-e f() fund nmprovernent protects and / or pay for the cost of maintaining these improvements • The district can pledge the assessment revenue as payment of principal and interest on bonds issued to fund public improvements which benefit projects within it. Limitations As improvement districts are enacted. pnmarrly to wise money for the provision of certain E services or improvements, eligible protects which require the revenue of a special district must serve a public purpose. 14. Parking Districts Purpose of Incentive A parking district is a designated area wherein parking design, development and management issues, beyond those provided for by standard municipal levels of service, are controlled by a select entity. The purpose of this incentive is to allow property and business owners to share in the cost of infrastructure and services in an effort to stabilize and distinguish a business and /or neighborhood district, and thereby potentially improve its market position. 25 RENEWAL WHEAT RIDGE Project Use • In order for a parking district to be established, 51 % of the property owners must submit a petition request. • Upon creation of the district, property owners will be assessed an additional fee to fund improvement projects within its area. • The district can then pledge the assessment revenue as payment of principal and interest on bonds issued to fund public improvements which benefit projects within it. Limitations As improvement districts are enacted primarily to raise money for the provision of certain services or improvements, eligible projects which require the revenue of a special district must serve a public purpose. 15. Loan Pools Purpose of Incentive The purpose of this incentive is to spread risk across multiple funding entities. Pools can be assembled with private, public and semi - public dollars. An obvious resource can be Community Reinvestment Act (CRA) dollars, managed by private lending entities that are required to be invested directly in the community. Commitments can take the Form of 0 RENEWAL WHEAT RIDGE loans, letters of commitment and stock purchases. Loan pools may also include program partnerships. Project Use The City will facilitate discussions with various local and regional lending entities (public public nd semi - private) to identify set - asides for a loan pool to be used by credible borrowers for the development of projects in targeted areas. The City may consider subordinating the loan pool fund, if necessary. Limitations Limitations will be largely dictated by the rules and regulations associated with the funding sources and terms and conditions of the specific award. 16. Project Participation Purpose of Incentive The purpose of this incentive is to offer public sector support to projects in an indirect way, as an alternative to direct financial participation. 27 RENEWAL WHEAT RIDGE Project Use • The City will consider taking space (relocating a department) in a newly developed or redeveloped commercial project. If their CIP plan includes the expansion of public facilities or spaces, the City may consider doing this in cooperation with the developer. (See Pedestrian Enhancements and Linkages.) • The City may provide the services of one of their departments or affiliates (Chamber, Economic Development) to either the developer or tenants in the development to advance the success of the project or their individual business. Limitations As identified through policies of the City Council. 17. Business Relocation / Retention Assistance Purpose of Incentive The purpose of this incentive is to assist existing businesses with their expansion, retention and relocation needs. Costs associated with relocation are an acceptable expense within an urban renewal area. However, projects not located within an urban renewal area may be required to buy -out leases (at a minimum) and possibly cover 28 RENEWAL JV±1EI =.I f�id1 relocation expenses in an effort to advance (re) development projects in infill areas. In addition to providing dollars for actual expenses, the City may partner with various economic development entities to assist with marketing and disruptions in operations. Project Use • The City may identify and /or retain someone to serve as a point - person for relocation inquiries. • Within existing urban renewal areas, the City will make sure that a relocation plan with specific provisions is in place. • The City may preemptively solicit the participation of a range of economic development partners to assist the City in their redevelopment goals and objectives. Limitations As identified through policies of the City Council and any other participating entities. 18. Development Approval Facilitation (Streamlining) Purpose of Incentive The City's organizational structure is expressly designed to allow for interdepartmental coordination for development projects. Its mission is to focus on and provide assistance to 29 RENEWAL WHEAT RIDGE priority projects that are eligible as defined under this Policy. Through staff project facilitation, the City will attempt to resolve questions that arise through a main point of contact who will then work with other departments as necessary, in order to facilitate a streamlined process for projects in pre - development. Project Use City staff representatives on the team will host a pre - development conference to address construction, platting, zoning and permitting issues. A project manager from the City will be assigned to serve as the primary contact for addressing internal problems and issues related to the project. Key staff will continue to facilitate issues that arise and eventually serve as advocates for projects between departments and with City Council, assisting with formal presentations and soliciting timing guarantees. Limitations This service applies to projects which meet the catalyst project criteria as outlined in this Policy. 30 RENEWAL WHEAT RIDGE F'•�.y. i.ti� Ili a X14. 1 .l. r, r " DEFINITIONS Capitalized terms used in this Policy, but not defined elsewhere, shall have the following meanings: Business Recruitment / Retention: Program, frequently administered by an economic development entity, which assists with the recruitment (attraction) or retention of business either into or within a designated area; program elements, might include financial assistance, regulatory assistance, and / or marketing. Capital Improvement Plan (CIP): Dollars earmarked for improvement and extension of infrastructure in municipalities. Density Bonuses: Incentive offered to developers of projects that meet specified goals (i.e., affordable housing, public spaces, transit, etc.) which reward them in the form of fee waivers, abatements, etc. for building -out their development envelope and advancing community goals. Development Fee Waivers: Monetary charges on development, capital and operating that are required to accommodate a project, which can be recouped (all or a portion). Note: Fees for se building permits, processing fee, etc. can be waived or delayed until the developer sees a positive cash flow as a means to encourage infill projects. Improvement District: Both an organizing and financing technique for area revitalization. Districts provide a stable stream of income for activities and projects considered special to area 31 RENEWAL W►iFAT F21L�G€ or in addition to general municipal services. Districts are a vehicle for providing additional services for a fee and should not be considered a substitute for services funded through traditional tax revenues. Infrastructure Cost Participation: Cost of infrastructure (either on -site or off -site) shared by developers and / or property owners with an entity (public, private, or semi - private organization) which will benefit from its availability - can be offered through a formal program or on a case -by- case basis. Land Assembly: Land assembled by public, private or non - profit entities in an effort to position it for development of larger projects. Assemblies can happen through purchases of properties, vacations and / or the rerouting of streets, alleys, etc. Land Donation / Write -Down: Property owner - public, private or semi - private organization - contributes land to a project either as a donation without an expected return, or at a reduced price. City- acquired property through fee simple transactions and foreclosures are an obvious source for land contributions. Land Swap: To develop specific infill sites in specified way, potentially contrary to the intentions of existing property owners and/ or developers, cities can offer an exchange of city -owned land of similar value in an alternative location. Loan Pool (Lending Pools): Several lending organizations contributing financing to a project or projects, thus sharing risk. An amount of capital pledged by several entities for lending to 32 RENEW.I.L businesses based on some agreed upon goals or other criteria. Pledges can be in the form of loans, letters of commitment and stock purchases. Pools can be either organized formally or on a case -by -case basis. Parking District: Designated area wherein parking design, development and management issues among multiple facilities beyond that provided for by standard municipal levels of service are controlled by a select entity. Pedestrian Enhancements and Linkages: Various public, private and non - profit initiatives to improve the pedestrian environment in a designated area, i.e., permanent and temporary streetscape elements, sidewalk widening, reduced speeds, etc. The resulting environment is designed to accommodate the needs of pedestrians, as well as through- and destination - traffic, by incorporating select infrastructure improvements, design elements, and traffic management mechanisms. Methods to achieving this include: separating traffic through the use of parallel streets; limiting access points; linking parking lots; coordinating traffic signals; adding alternative transportation lanes; widening sidewalks; providing crosswalks, street lights and furniture; preventing "deadening" uses without building fronts; and, incorporating transit stops. Predevelopment Funding Grants: Financing for project expenses incurred prior to construction, i.e., soft costs including consulting, design, engineering, planning, marketing, etc. Note: The Economic Development Administration (EDA) has funds for predevelopment and construction costs. 33 RENEWAL WHEAT RIDGE Public Subordination: City / County provide a guarantee to the lending organization that, in the event of default, debt service will be paid. Redevelopment: The reconstruction or improvement of an area within an existing built- environment. Revenue or General Obligation Bond: If a project has a secure revenue stream, such as parking fees resulting from construction of a parking structure, bonds may be issued and amortized by the anticipated revenue which results from the improvement that was funded. Bonds are not secured against the taxing authority of the City, and they do not require a public vote. Sales Tax Refund / Sharing: Refunds on net sales, use, franchise, transfer or other taxes. Sharing - future sales from a development can be rebated to the developer to pay for infrastructure - City / County agrees to split sales tax revenue with development, and then developer uses it to pay for infrastructure. Streamlined Development Approval: Initiative by government entity to facilitate a timely approval process for (re) development projects meeting certain criteria. Also referred to as a "green- tape" permitting program. Critical elements of program: 1) streamlined permit and entitlement process; 2) greater predictability; and, 3) fairness in fees and exactions. Components: 1) appointed case manager; 2) consolidated permit process; 3) waived or reduced fees; 4) reduced number of changes to previously approved plans; 5) stoppage to the 34 RENEWAL WHEAT RIDGE issuance of conflicting requirements by different departments; 6) a single public hearing; 7) streamlined environmental review process. Streetscape: Improvements to streets that enhance pedestrian activity. Streetscape enhancements may include: special paving, trees, planters, kiosks, fountains, plazas, benches, bicycle racks, vehicular and pedestrian lighting, and other public space amenities deemed desirable by the City. Tax Abatement or Rebate: Taxing entity (usually the City) abates or rebates a portion of a project's tax burden; this can happen in the form of an adjustment on an individual property basis, or in an abatement zone. Tax Exempt Bond Financing: Method of financing long -term debt issued by the government whereby bondholders need not include interest payments on taxable income. Tax Increment Financing (TIF): A district obtains funds from increases in regular tax revenues that arise from new development in the district; incremental increase in tax revenues over designated base year revenues is diverted to a special fund; diversion of regular tax revenues rather than additional fees to generate revenue for district investments. Can be used in conjunction with municipal bond issues whereby increment is pledged to repayment of the bond issue, or actual increase allocated to an administering agency directly to finance redevelopment activities. 35 RENEWAL WHEAT RIDGE Transfer of Development Rights (TDR): Ability to transfer property entitlements from one property to another when one of the parcels is located in a designated development area. Urban Renewal: Tool used for the purpose of eliminating slum or blighted areas within a municipality, and positioning properties for development or redevelopment. Actions under urban renewal include demolition of structures; construction of infrastructure and public spaces; sale of property; and, relocation of businesses and residents. 36 pl�--�---R 0 C I FROM: Jerry DiTullio, Mayor Council Member Stites DATE: March 15, 2010 SUBJECT: Proposed Partial Use Tax Waiver Program for City Council Example: Valuation of a given project: $1,000,000 .60 of project: S 600,000 Use Tax: .03 X $600,000 $ 18,000 Analysis Below is a Strengths, Weaknesses, Opportunities and Threats (S.W.O.T.) analysis on implementing a vendor fee. Strengths • Creates a financial incentive tool which may be used by City Council to attract quality development or redevelopment projects. • At least 25% of the calculated use tax is still collected by the City on any given project City Council March 15, 2414 Page 2 over $5,000 (See recommendations below). Tool is used on a c, b)L case J,&ULWjL-dg&Z2g grojects. 11M • Loss of hard revenue to the City. • Any use tax waivers by City Council are both a quantitative and subjective decision , Opportunities • Program promotes the City of Wheat Ridge to the business community by fostering good will and positive working relationships. • Makes the City of Wheat Ridge more competitive with its neighbors in attracting quality development and redevelopment projects. Threats • MEMEEEEEM= RECOMMENDATION As the proposed program relates only to a Council-permitted waiver of a portion of use tax, this proposal could be written as a new Code Section 22-69, appearing as the last section in the present division three of Chapter 22, relating to the use tax. Thefollowing is a recommendation of this proposed language: Section 22-69 Development Incentive Waiver Program. a. Waiver Program Established: There is hereby established a development incentive waiver program (the "program") under which qualifying taxpayers may request a waiver of a portion of use tax otherwise payable in connection with the development of a new commercial • industrial enterprise within the City or the redevelopment of an existing commercial or industrial enterprise. b. Eligi:bilLq: Any single taxpayer otherwise liable for payment of more than a total of $5,000 in use tax in any one calendar year pursuant to Section 22-66 and/or Section 22- 68, which tax is imposed in connection with the development or redevelopment of a new commercial or industrial enterprise within the City, shall be eligible to apply for a partial waiver of use tax pursuant to the program. c. Agplication: Taxpayers wishing to • considered for a waiver shall file an application on forms provided by the City Treasurer. The application shall, at a minimum, include the following: City Council March 15, 2010 Page 3 I . Such waiver is restricted to any amounts of use tax in excess of $5,000 use tax to be fa a single calendar year, and 2. Such waiver may not exceed 75% of such eligible use tax in excess of $5,000. The decision of the City Council shall be final and non-appealable. e. Criteria- In making its decision, the City Council shall consider, in addition to other factors relevant to the specific application, the following criteria: 1. The economic impact of the proposed new or redeveloped commercial industrial enterprise upon the City, measured in property, sales and use taxes a permit fees. 2, The number of new jobs created and/or saved 3. Any off site costs or impacts of the project. I Example of use tax waiver as proposed: Valuation of a given project: .60 of project: $1,000,000 $ 600,000 Use Tax: .03 X $600,000 Total amount eligible to be waived By Council: ($18,000 — $5,000) X.75 $ 18,000 $ 9,750 (up to amount) The Mayor's Office encourages City Council to at least move the proposed waiver program forward to l" Reading so the program can be debated in a transparel and open forum. Accommended Consensus: I would askfor a consensus directing the City attorney to draft an ordinance for 0 reading which creates a use tax waiver program as detailed in the Study Session memo dated March 15' 2010 and as discussed at the March 29 2010 City Council Study Session. .... .. . MEMORANDUM TO: Mayor Jerry DiTullio CC: Randy Young, City Manager FROM: Gerald Dahl, City Attorney DATE: December 14,2009 RE: Use Tax Waiver As the proposed program relates only to a Council-permitted waiver of a portion of use tax, this proposal could be written as a new Code Section 22-69, appearing as the last section in the present division three of Chapter 22, relating to the use tax. The following is a rough draft of this proposed language: Section 22-69 Develoll w ent Incentive Waiver Frog ram. a. Waiver Proaram Established: There is hereby established a development incentive waiver program (the "program") under which qualifying taxpayers may request a waiver of a portion of use tax otherwise payable in connection with the development of a new commercial or industrial enterprise within the City or the redevelopment of an existing commercial or industrial enterprise. b. L, , ligibility: Any single taxpayer otherwise liable for payment of more than a total of $10,000 in use tax in any one calendar year pursuant to Section 22-66 and/or Section 22- 68, which tax is imposed in connection with the development or redevelopment of a new commercial or industrial enterprise within the City, shall be eligible to apply for a partial waiver of use tax pursuant to the program. c. Aw-lication: Taxpayers wishing to be considered for a waiver shall file an application on forms provided by the city treasurer. The application shall, at a minimum, include the following: e. Criteria: In making its decision, the City Council shall consider, in addition to other factors relevant to the specific application, the following criteria: 1. The economic impact of the proposed new or redeveloped commercial or industrial enterprise upon the City, measured in property, sales and use taxes and permit fees. 1 2. The number of new jobs created 3. Any off site costs or impacts of the project.