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HomeMy WebLinkAboutDowntown Development Authority - Minutes - 08/06/19980 0 DOWNTOWN DEVELOPMENT AUTHORITY Regular Directors' Meeting Kermit Allard, Chair 482-1893 (W) Chuck Wanner, Council Liaison 484-3014 (W) Anne Garrison, Staff Liaison 484-2020 (W) MINUTES OFAUGUST 6, 1998 REGULAR MEETING The Board of Directors of the Downtown Development Authority met in regular session at 7:30 a.m. on August 6, 1998 in the Meeting Room at Home State Bank 303 East Mountain Avenue. PRESENT There were present: Kermit Allard, Chair Mary Brayton, Vice Chair Greg Belcher, Treasurer Steve Slezak Larry Stroud Margaret Brown John Pitner ABSENT Chuck Wanner Jason Meadors, Secretary STAFF Chip Steiner, Consultant Anne Garrison Lucia Liley, Counsel GUESTS Jay Hardy, Jim Stouffer, Frank Vaught, Bob Mechels, John Fischbach, Alan Krcmarik, John Clark, Lance Freeman CALL TO ORDER Mr. Allard called the meeting to order and roll call was taken. 1i DDA MINUTES PAGE 2 APPROVAL OF A motion was made by Mr. Belcher to approve the minutes of July 2, 1998. MINUTES This was seconded by Ms. Brayton and carried unanimously. NORTHERN Potential conflicts of interest were declared by Ms. Liley, Counsel for the DDA, HOTEL and Mr. Stroud. Brad March, a partner in Ms. Liley's law firm, represents Mr. Mr. Stouffer, buyer of the Nothern Hotel. Mr. Stroud had also held discussions with Mr. Stouffer with regard to serving as a real estate broker in the transaction. Both absented the room during the ensuing discussion. Mr. Allard offered a compromise for this transaction only, that DDA consider using Jim Martell, thus freeing Mr. Stouffer to retain the services of Mr. March, who had been his ongoing Counsel on other issues beside this one. Other Board Members preferred retaining Ms. Liley and asking Mr. Stouffer to seek new counsel. Mr. Stouffer agreed to speak to Jim Martell, Mr. Stouffer's plans for the rehabilitation of the building include restoring the ground floor, in particular, to its original 1930's look, which will include reworking all plumbing, electrical, heating and sprinklers. Storefronts will be brought out to the street. The restaurant will remain where it has always stood. There will be an addition of conference, banquet rooms, and gold suites together with a 45 room boutique hotel. Mr. Stouffer estimates a project cost of six million dollars; three and one half to be taken up in renovation costs. The timetable calls for a real estate closing by the end of the year, which might be extended into 1999. At this juncture, Mr. Fischbach stated that this project was fundamental to the future of downtown, and was of great import from the City standpoint. The Board felt is was prudent to withhold a dollar commitment until the contract is finalized. A more complete cost estimate will available in the next 3 - 4 weeks. Mr. Stouffer plans to do a quality project without cutting comers, but financial assistance is both needed and welcome. Ms. Brayton then moved to adopt Resolution 98-7 in support of this project, this was seconded by Mr. Belcher and the motion carried, with Mr. Stroud abstaining. ROBERT BISETTI/ Mr. Steiner re -introduced this topic to the Board. He recalled that in an earlier CHRIS RAY discussion of the proposal two concerns surfaced, namely the number of PROJECT spaces which would be provided by the new parking ramp, and the need to recoup DDA's initial investment. Development of the lot would reduce current parking by over 50 spaces, however, 905 additional spaces will be provided with the advent of the parking structure. Thus, the question on the table is whether or not DDA wishes to sell the property. Ms. Brayton felt that it is incumbent upon the DDA to notify businesses affected by the possible sale of the lot One way might be to hold a block meeting to advise merchants of the proposal, hear their opinions, and although these are not necessarily the basis for a decision, the meeting will serve to inform tenants of development plans. DDA MINUTES PAGE 3 Mr. Belcher said that from his perspective, to take a difficult site which is currently producing little or no property or tax increment increases, and develop it would seem to be in everyone's best interests, especially with 905 additional parking spaces only half a block away. Mr. Slezak feels the proposal is well conceived and thought out However, he stated, there are more issues at hand. We have not actively tried to market the property, and downtown space is extremely desirable today. DDA has a fiscal responsibility to determine its value through an appraisal process. He further stated that the buyers should underwrite the expense of the appraisal. Mr. Pitner concurred with the foregoing remarks, stating that he felt the property was worth a great deal more than imagined. Ms. Brayton moved to schedule a neighborhood meeting to advise those interested of the possible development of the Mason Street lot, and to seek out a fair market value for the property. Mr. Belcher seconded the motion. Mr. Stroud observed that it was not necessary to obtain an appraisal, but simply a market valuation with which the Board is comfortable. However, Mr. Stroud asked the Board if it was a foregone conclusion that DDA would sell the land. If that is so, then there should be some format in which it is made public, so that it is not sold to the first person who comes along. Mr. Steiner reminded the Board that several months ago it adopted a resolution in which it was stated that DDA would not entertain other offers on the property for a period of six months. That period expires in September. Mr. Slezak suggested that DDA use the next 30 days to set up a neighborhood meeting, and take time to determine if this is really in the best interests of downtown, in light of the many projects being undertaken at this time. There being no further discussion, the motion carried unanimously. A debate arose regarding the agenda for the neighborhood meeting. It was felt it should be stated that there is a proposal; that consideration is being given to the sale of this lot, and it will entail some loss of parking. Some opposing viewpoints were expressed, those who felt full disclosure of the possible sale of property should be made, and the highest bidder accepted. Others felt that if Bisetti and Ray paid fair market value as determined by the Board then the property should be theirs, since they were the first to approach the Board. Ms. Liley suggested that following the market analysis, DDA enter into a contract with Bisetti and Ray which carries various contingencies on items such as neighborhood meetings, parking analysis, etc., all of these within a defined timeframe. Then hold the neighborhood meeting and advise that we have a pending proposal, carrying a number of contingencies which must be met, one of which is to hold a neighborhood meeting. In this way the Board is dealing with a 'live' project, and if all contingencies are met the BisettVRay venture can go forward. DDA MINUTES PAGE 4 Ms. Brayton used the foregoing clarification by Counsel to propose a motion, this was seconded by Mr. Pitner and carried with Mr. Slezak abstaining. Mr. Allard confirmed for the record, that it was the Board's wish to rescind the first motion referencing neighborhood meetings. IGA Ms. Liley explained the changes to this Intergovernmental Agreement, referring the Board to page 3 of 6, section 3.2. In this paragraph, DDA seeks to ensure that the continuing commitment to pay $300,000 out of the tax increment fund as a lease payment, will cease at the time DDA terminates, which was the original intent, and anticipated to be in the year 2006. The City's Bond Council had wanted to tie it to annexation of properties, and some of those were as late as 1990. If the DDA reinvented itself, or it had other projects, it does not want to have to pay $300,000 beyond the year 2006. The change will ensure that this obligation will cease in the year 2006. Ms. Brayton moved to adopt the amended IGA as presented, and authorize the Chair to sign accordingly. This was seconded by Mr. Belcher and carried unanimously. HORTICULTURAL In his introductory remarks, Mr. Steiner stated that a downtown location is still CENTER under consideration, along with several other sites. Although DDA has visited the issue on previous occasions, Jim Clark approached the Board today to seek its help with the funding of this project. Addressing site selection, Mr. Clark, accompanied by Mr. Freeman, of the City Parks and Recreation Board, stated that Lee Martinez Park; a CSU owned site just below the Holiday Inn; a proposal of land from Front Range Community College, and the Environmental Learning Center on Prospect are other considerations. As part of the information gathering process, and before returning to City Council in October, costs need to be assessed, particularly as they relate to Lee Martinez Park. Two hundred thousand has been pencilled in for the land purchase, this figure could be exceeded if the three properties along North College are purchased. Reviewing Resolution 98-6 Mr. Slezak asked if the funding of the Horticultural Center at a level of $300,000 was feasible, if the Northern Hotel project was also undertaken. Mr. Steiner took a moment to review the budget projections and to point out the variables. It was felt that the Board should undertake this project, and when faced with the next request, respond as is appropriate at that time. Ms. Brayton then inquired about a suggestion made previously by Mr. Steiner in which an ancillary group called Friends of the Horticultural Center would take over the maintenance and upkeep of Old Town Square, (including Huckleberry's,) with that entity contributing what is currently being paid for these services, perhaps with some additional assistance from DDA. Mr. Belcher then moved to adopt Resolution 98-6 in which DDA agrees to assist with the funding of this project for up to $300,000. This was seconded by Ms. Brown. Ms. Brayton would like to see, as part of the Resolution, DDA pursue DDA MINUTES PAGE S having the Friends of the Horticultural Center take over the care of the plaza. Mr. Steiner inquired if the "up to" language should be removed from the Resolution. After some discussion it was decided to amend the Resolution to read 'expenditure of $300,000' and delete the term 'up to'. The motion carried 6 - I with Mr. Slezak voting against the proposal. DDA BUDGET In accordance with the suggestion that the Budget be considered over a period of two meetings, this will constitute the Board's first reading. Mr. Steiner provided a brief overview and asked that any comments or suggestions should be made now, or called through to him at a later time. BYLAW CHANGES Mr. Steiner referred to the changes suggested, which were to strike the requirement for a seal because we do not have one; strike clause in Article 2, section 2.3 on Vacancies; which reads 'nominated by the Authority for term extension.' Change term of officers from one to two years; limiting the term in office to one term, a person cannot serve two consecutive terms; Secretary and Treasurer positions may be filled by one person, change the Bylaws to allow the Authority to contract for Management Services as well as to hire an Executive Director; current open meeting language is changed to conform to current statute on open meetings. Omitted are the bonding requirements which need to be waived, and signing off on payment authorizations, this either needs the signature of the Treasurer or authorization for Anne Garrison to sign them. Mr. Steiner suggests these be brought back in September, to allow him time to add the omitted areas. OTHER BUSINESS Due to time constraints, Mr. Allard requested that reports from Ms. Brown and Mr. Belcher who attended a FEMA meeting as representatives of the DDA, be received at the next meeting. ADJOURN There being no further business the meeting adjourned at 9:50 a.m. Jason Meadors, Secretary