GOLDEN URBAN RENEWAL AUTHORITY BUSINESS MEETING City Council Chambers 911 Tenth Street April 14, 2014 6:30 p.m. ****************************************************************************** I. Call to Order II. Roll Call III. Approval of Minutes – Business Meeting of 2/10/14 and 3/10/14 IV. Public Comment V. Reports of Committees/Matters for the Authority 1. Finance Committee 2. Human Resources Committee 3. Communications Committee 4. Development and Operations a. Discussion/Update re on 8th Street Apartments Urban Renewal Project b. Discussion/Update re Natural Grocers Project c. Discussion/Update re Lots 2 and 4 d. Discussion/Action re Banks gate to parking structure e. Discussion/ Action re City Cooperation Agreement f. Discussion/Update/Action re Miners Alley and Washington Ave projects g. Review DDA status and Board h. URA legislation update VI. New Business 1. Discussion/action re energy efficiency/ tenant improvements grant request from 5 Star Bakery Company 2. Discussion/action re patio grant request from Blue Canyon/Foss 3. Discussion/action re grant request form Golden Gallop VII. Commissioners Concerns VIII. Staff Report IX. Public Comment X. Adjourn GURA Mission Statement: To implement urban renewal projects, consistent with community values, that: • Improve the community’s physical presence within each project; • Promote each project’s desired character, and • Contribute to the economic stability and vitality of each project. Memorandum To: GURA Board of Commissioners From: Steve Glueck, Executive Director Date: April 9, 2014 RE: Meeting Memo for April 14, 2014 meeting This memo will provide background information on selected items to be discussed at the upcoming GURA meeting. V.4.a. 8th Street Apartments Urban Renewal Project. The “West 8th Apartment” project is nearing completion with the occupancy of the western building in the next several weeks and the completion of the east building and clubhouse by this summer. Based upon the terms of the Owner Participation/Redevelopment Agreement, the next steps will include certification of completion of the basic and additional items required by the Agreement, as well as documentation of actual costs. The agreement also provides that the first TIF rebate is to be based upon the property tax year when the project is complete. According to the County Assessor, the 2014 assessed value of the project will be the valuation as of January 1, 2014, when the project was only about 1/3 to ½ complete. Accordingly, the first year of full increment and the first payment to the project will be the 2015 tax year, collected and partially rebated in 2016. Although the 2014 valuation is not yet known, there should be some level of property tax increment directed to GURA. While the board has adopted policies for the division of increment to the general fund and the special project fund, in this specific case it will be necessary for the board to determine how much of the increment to use for operations, and how much to use to fully or partially repay the loan from the downtown fund for establishment of the project URA plan. V.4.b. Natural Grocers Project. The Natural Grocers project, within the Central Neighborhoods URA project is moving closer to construction with concurrent City review of the building permit plans and Council review of a final plat to adjust lot lines. In terms of the GURA agreement, the final steps are the execution of the façade and community garden leases. As noted in March, the developer has proposed that the community garden lease terms would be simplified by adding the Denver Urban Gardens (DUG) (as non-profit operator with a local committee) as a party to the lease. DUG is also the leaseholder for the Golden community garden near the City recreation center. The final version of the three party lease was referred for comment to Commissioner Gould as the most involved with that aspect. Staff and Commissioner Gould will update the board regarding whether there are any issues requiring board concurrence before execution of the leases. Assuming a construction start later this spring, there will be no 2014 property tax year (2015 collection) increment for use by GURA or to begin property tax TIF rebates in 2015, however, it is expected that the sales tax increment and rebates will begin early in 2015. In this fashion, year one of the sales tax portion of the agreement will be 2015 and year one payments under the property tax portion of the agreement will occur in 2016. 1 V.4.c. Lots 2 and 4. ARES representatives continue to pursue ways to comply with parking requirements as the City’s parking study proceeds. There is no specific update. V.4.d Banks Gate to Parking Structure. Staff has reviewed the situation near Prospectors Alley whereby the gate from the few spaces within the parking structure assigned for use by the Banks Agency property is not allowed to be locked by the City Fire Marshall and, as an unlocked gate, tends to facilitate trespass by the general public across land owned by the Banks family. Unfortunately, there do not appear to be physical solutions to the situation (under the current agreement) that do not involve the removal of a parking space. Such ideas could include creating a fenced corridor directing users to the alley so that they do not cross the private property. This could occur from the current gate location, or for a much higher cost could involve relocating the gate and exit. The creation of a defined path from the gate to the alley would be affordable for GURA, but the loss of a parking space is likely not desirable for the Banks’ property. Staff is beginning to think that the most effective solution may be a renegotiation of the agreement if the property owner pursues a redevelopment of the property, perhaps converting the designated spaces in the structure to undesignated public spaces, with “cash in lieu” credit for the project. Discussions with the property owner should continue. V.4.e. City Cooperation Agreement. City Council reviewed the various agreements among the City, GURA, and DDA in recent weeks. City Council reviewed the co-operation agreements on April 10th, and was expected to approve them as written. At this time, it is appropriate for the GURA board to approve the agreement by the attached Resolution. V.4.f. Miners Alley and Washington Ave Projects. There is progress to report for each of these projects, however, no specific construction schedule. As the board will recall, you authorized up to $150,000 for Miners Alley repaving in March. In recent weeks, the Urban Drainage and Flood Control District has expressed strong support for choosing this location for their pilot project to evaluate porous block pavers that would best address our drainage concerns and provide a very attractive surface for both vehicular and pedestrian/business use, at a lower cost to GURA. In addition, City Public Works staff has asked to slow down the construction schedule due to heavy workload demands from private development and public projects. For this reason, the schedule for Council to authorize the change order to the City concrete contractor was delayed from April 10th to at least April 24th. Staff hopes to have additional information by the meeting. The preliminary design work for the Washington Avenue from 14th to 18th Streets project continues with more detail to impacts of the vertical grade going up to 15th Street on the parking design for the first part of the block from 15th to 16th. Staff will present a sketch of current ideas at the meeting. City Council did discuss the repaving project from 11th to 13th Streets on March 20th and determined that a final funding decision will be made in late summer or early fall (as better cost and revenue information becomes available) but that Council’s first choice is the flex space option that GURA agreed to partially fund in March, and that Council was thankful for the board position on “tactical urbanism” and the need to fund and install amenities to demonstrate the use of such flex space. V.4.g. Review DDA Status and Board. City Council made appointments to the DDA board on March 20th, including four members of the prior downtown development task force. Staff is currently assembling information for the board to begin their process. The first scheduled meeting is April 21, 2014 (and it is expected that the board will continue meeting on the third Monday of the 2 month for regular meetings). In addition to electing officers and approving by-laws etc, the Board will begin to review documents related to their obligation to present a “Downtown Development Plan” to Planning Commission and City Council by fall. It will be necessary to address the GURA funding agreement with the DDA in coming months as well. The GURA board had suggested a joint meeting that could occur in May or June. V.4.h. URA Legislation Update. As of the first week of April, a draft of a bill regarding urban renewal is circulating at the legislature. It has two main elements of concern. If enacted as currently drafted, it would require urban renewal authorities that adopt new urban renewal plans after the effective date (assumed to be August 2014) to include a board member appointed by the Board of County Commissioners in addition to the City Council appointed board members. The second element of the bill would limit the percentage of the property tax increment available to the URA to the percentage of sales tax increment pledged by the municipality, unless a separate agreement is reached with an individual taxing authority (such as the county or school district).