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HomeMy WebLinkAboutAgenda - Mail Packet - 7/26/2022 - Urban Renewal Authority Board Meeting Agenda - July 28, 2022 (6)City of Fort Collins Page 1 Jeni Arndt, Chair Joe Wise, Vice-chair Susan Gutowsky Julie Pignataro Tricia Canonico Shirley Peel Kelly Ohlson Emily Francis Kristin Stephens Kristen Draper Andy Smith Council Information Center (CIC) City Hall 300 LaPorte Avenue Fort Collins, Colorado Cablecast on FCTV Channel 14 on Connexion Channel 14 and 881 on Comcast Caitlin Quander Josh Birks Anissa Hollingshead Brownstein Hyatt Farber Schreck Interim Executive Director Secretary URBAN RENEWAL AUTHORITY BOARD MEETING July 28, 2022 ● 5:00 PM PUBLIC PARTICIPATION OPTIONS There will be four options for people who would like to participate in the meeting: • Live via the Zoom online meeting, • Live via the telephone, • Live in the Council Information Center, • By submitting emails to cfrickey@fcgov.com All options will be available for those wishing to provide general public comment, as well as public comment during individual discussion items. PUBLIC PARTICIPATION (ONLINE VIA ZOOM) Individuals who wish to address the Board via remote public participation can do so through Zoom at https://zoom.us/j/98687657267. Individuals participating in the Zoom session should watch the meeting through that site, and not via FCTV, due to the streaming delay and possible audio interference. The Zoom meeting will be available beginning at 4:30 p.m. on the day of the meeting. Participants wanting to ensure their equipment setup is working should join prior to 5:00 p.m. For public comments, the Chair will ask participants to click the “Raise Hand” button to indicate you would like to speak at that time. Staff will moderate the Zoom session to ensure all participants have an opportunity to address the Board. City of Fort Collins Page 2 In order to participate, you must: • Have an internet-enabled smartphone, laptop or computer. Using earphones with a microphone will greatly improve your audio experience. • Join the Zoom meeting using the link on the front page of the agenda or on the URA webpage a t: http://www.renewfortcollins.com/meeting-agendas. PUBLIC PARTICIPATION (VIA PHONE) • Dial public participation phone number, 1-346-248-7799. • Enter the Meeting ID: 986 8765 7267 followed by the pound sign (#). • The meeting will be available beginning at 4:15 p.m. Please call in to the meeting prior to 5:00 p.m., if possible. For public comments, the Chair will ask participants to indicate if you would like to speak at that time – phone participants will need to press *9 to do this. Staff will be moderating the Zoom session to ensure all participants have an opportunity to address the Board. PUBLIC PARTICIPATION (IN PERSON): To participate in person, individuals should be prepared to foll ow strict social distancing, sanitizer and facial covering guidelines. • A limited number of individuals may be allowed in the Council Information Center. Therefore, staging for individuals who wish to speak will occur in the City Hall lobby and outside (we ather permitting). • Individuals may be required to wear masks while inside City Hall and any other City buildings being utilized. • Individuals who wish to speak will line up at one of the two podiums available in Council Information Center, maintaining physical distancing. • Once a speaker has provided comments, they may be asked to leave the Council Information Center to make room for the next speaker. PUBLIC PARTICIPATION (VIA EMAIL): Individuals not comfortable or able to access the Zoom platform or abl e to participate by phone are encouraged to participate by emailing general public comments you may have to cfrickey@fcgov.com. If you have specific comments on any of the discussion items scheduled, please make t hat clear in the subject line of the email and send prior to the meeting Thursday evening. WATCH THE MEETING: ● Anyone can view the Board meeting live on Channels 14 and 881 or online at www.fcgov.com/fctv and will be replayed the following morning at 10 am. Documents to Share: If an individual wishes to speak to a document or presentation, email those materials to URA at cfrickey@fcgov.com no later than 3 p.m. the day of the meeting. Upon request, the City of Fort Collins will provide language access services for individuals who have limited English proficiency, or auxiliary aids and services for individuals with disabilities, to access City services, programs and activities. Contact 970.221.6515 (V/TDD: Dial 711 for Relay Colorado) for assistance. Please provide 48 hours advance notice when possible. A petición, la Ciudad de Fort Collins proporcionará servicios de acceso a idiom as para personas que no dominan el idioma inglés, o ayudas y servicios auxiliares para personas con discapacidad, para que puedan acceder a los servicios, programas y actividades de la Ciudad. Para asistencia, llame al 970.221.6515 (V/TDD: Marque 711 para Relay Colorado). Por favor proporcione 48 horas de aviso previo cuando sea posible. City of Fort Collins Page 3 PLEDGE OF ALLEGIANCE • CALL MEETING TO ORDER • ROLL CALL • AGENDA REVIEW • Executive Director’s Review of Agenda. • PUBLIC PARTICIPATION • PUBLIC PARTICIPATION FOLLOW-UP • COMMISSIONER REPORTS Discussion Items The method of debate for discussion items is as follows: ● Chair introduces the item number and subject; asks if formal presentation will be made by staff ● Staff and/or Applicant presentation (optional) ● Chair requests public comment on the item (three-minute limit for each person) ● Board questions of staff on the item ● Board motion on the item ● Board discussion ● Final Board comments ● Board vote on the item Note: Time limits for individual agenda items may be revised, at the discretion of the Chair, to ensure all have an opportunity to speak. Please sign in at the table in the back of the room. The timer will buzz when there are 30 seconds left and the ligh t will turn yellow. It will buzz again at the end of the speaker’s time. 1. Consideration and Approval of the Minutes for the May 26, 2022 Urban Renewal Authority Board Meeting. The purpose of this item is to approve the minutes of the May 26, 2022 Urban Renewal Authority Board meeting. 2. North College Property Acquisition The purpose of this item is to consider three activities related to potentially acquiring property in the North College Plan Area: 1. Begin negotiations for acquiring the Albertsons site and two adjoining buildings; 2. Discuss funding options with City staff and the Council Finance Committee; and 3. Conduct a commercial real estate appraisal of the Albertsons site and two adjoining buildings. Country Club Corners, the strip mall at the southeast corner of College Ave. and Willox Ln., developed in 1995. Albertsons anchored this strip mall. After a series of property sales, Albertsons closed in 2014 and has sat vacant since. Albertsons entered into a lease with the property owner that expires in 2030. The Covenants, Conditions, and Restrictions (CC&Rs) on the property have made filling this vacancy and others within Country Club Corners challenging. As a result, t he shopping center has fallen into disrepair. Purchasing the property could help the Authority achieve several goals and help create a more vibrant North College. • OTHER BUSINESS • ADJOURNMENT Agenda Item 1 Item # 1 Page 1 AGENDA ITEM SUMMARY July 28, 2022 Urban Renewal Authority Board STAFF Anissa Hollingshead, City Clerk SUBJECT Consideration and Approval of the Minutes for the May 26, 2022 Urban Renewal Authority Board Meeting. EXECUTIVE SUMMARY The purpose of this item is to approve the minutes of the May 26, 2022 Urban Renewal Authority Board meeting. ATTACHMENTS 1. May 26, 2022 (PDF) 1 Packet Pg. 4 City of Fort Collins Page 446 URBAN RENEWAL AUTHORITY BOARD May 26, 2022 5:00 PM • ROLL CALL PRESENT: Stephens, Wise, Gutowsky, Pignataro, Francis, Peel, Draper ABSENT: Smith (Excused), Arndt (Excused), Canonico (Excused), Ohlson (Excused) • AGENDA REVIEW Interim Executive Director Birks stated there were no changes to the published agenda. Vice Chair Wise outlined the public participation options. • PUBLIC PARTICIPATION - No public in attendance. • COMMISSIONER REPORTS 1. Consideration and Approval of the Minutes for the March 31, 2022 Urban Renewal Authority Board Meeting. (Adopted) The purpose of this item is to approve the minutes of the March 31, 2022 Urban Renewal Authority Board meeting. Commissioner Francis made a motion, seconded by Commissioner Gutowsky, to approve the minutes of the March 31, 2022 meeting. RESULT: ADOPTED [UNANIMOUS] MOVER: Emily Francis, District 6 SECONDER: Susan Gutowsky, District 1 AYES: Stephens, Wise, Gutowsky, Pignataro, Francis, Peel, Draper EXCUSED: Smith, Arndt, Canonico, Ohlson 2. Resolution No. 120 Accepting the Appointment of a Commissioner to the Authority. (Adopted) The purpose of this item is to accept the Mayor's appointment of Andy Smith to the URA Board. Clay Frickey, Redevelopment Program Manager, stated this item would accept the Mayor’s appointment of Andy Smith for his second term to the Urban Renewal Authority Board as an at large member. He noted Council already approved the appointment. Commissioner Stephens made a motion, seconded by Commissioner Francis, to adopt Resolution No. 120 appointing Andy Smith to the Urban Renewal Authority Board. RESULT: RESOLUTION NO. 120 ADOPTED [UNANIMOUS] MOVER: Kristin Stephens, Board Member SECONDER: Emily Francis, District 6 AYES: Stephens, Wise, Gutowsky, Pignataro, Francis, Peel, Draper EXCUSED: Smith, Arndt, Canonico, Ohlson 1.1 Packet Pg. 5 Attachment: May 26, 2022 (11822 : Minutes - 0526) City of Fort Collins Page 447 3. Resolution No. 121 Approving the Appropriation of Funds for Prospect South Bicycle and Pedestrian Connectivity Study. (Adopted) The purpose of this item is to appropriate $250,000 to prepare design documents for bicycle and pedestrian improvements in the Prospect South plan area. In 2020 and 2021, Urban Renewal Authority (URA) staff collaborated with the Institute for the Built Environment on a series of public workshops to generate ideas on how to best spend unpledged tax increment in the Prospect South Plan Area. The top priority project from this engagement was bicycle and pedestrian connectivity west of College Ave. On March 25, 2021, the URA Board adopted the Prospect South Community Investment Plan. The Prospect South Community Investment Plan identified five projects for investment with enhanced bicycle and pedestrian connectivity west of College Avenue as the top priority project. In accordance with the Community Investment Plan, staff seeks an appropriation of $250,000 to begin implementing bicycle and pedestrian improvements west of College Avenue. This process will entail: • Creation of an existing conditions report documenting the bicycle and pe destrian network in its current state; • Series of public meetings to generate ideas and solicit feedback on potential design solutions; • Development of a preferred design with preliminary engineering design (30% design); • Maintenance plan for proposed improvements; and • Initial survey and easement work for acquiring property needed for completion of bicycle and pedestrian network. This process of seeking an appropriation follows the City’s purchasing policies. $250,000 will provide ample budget for completing the study based on comparable projects. The study will enable the URA to seek bids for constructing the proposed improvements. The URA will have enough cash on hand to begin funding these improvements in collaboration with the City. Clay Frickey, Redevelopment Program Manager, stated this item relates to the Prospect South bicycle and pedestrian connectivity study appropriation that would be funded by unpledged tax increment revenue. He discussed the stakeholder outreach and public engagement that resulted in five top priorities: a westside bicycle and pedestrian corridor between the Mason Trail and College Avenue, sidewalk and crosswalk improvements across College Avenue, additional green plaza and outdoor dining areas, existing small business preservation, and enhancements to Creekside Park. Frickey noted a community investment plan for the Prospect South plan area has been adopted by the Board and it outlines a plan to invest in the priorities in order over the next decade or so. He outlined the goals of the connectivity study, which would create a 30% design document for the westside corridor improvements. He noted the scope of work for the ultimate construction of the project will include a maintenance plan and initial survey and easement work as much of the property is privately owned. He stated the $250,000 appropriation would provide a sufficient cushion wherein staff would not need to ask for an additional appropriation. Frickey noted the URA Finance Committee supported the appropriation. Commissioner Gutowsky asked if staff is anticipating pushback from the private property owners. Frickey replied it is difficult to determine that at this point as the property owners that would most likely be impacted have yet to be engaged. Commissioner Gutowsky asked whether this path would ultimately extend farther south to perhaps the Whole Foods area. Frickey replied that was one of the desires in the public outreach and the intent is to bring the connection to the Whole Foods parking lot. Commissioner Francis asked if this work would just include the corridor, not the green plaza and park enhancements. Frickey replied the Board could include those items in the scope of work. 1.1 Packet Pg. 6 Attachment: May 26, 2022 (11822 : Minutes - 0526) City of Fort Collins Page 448 Commissioner Francis expressed support for looking at the area more holistically from the beginning. She asked if the funds would be returned if they do not get expended. Frickey replied in the affirmative. Vice Chair Wise asked how many years are left of the Prospect South plan area. Frickey replied it goes until 2036. Vice Chair Wise asked if it is likely the corridor could be completed through acquisition of easements rather than having to acquire entire properties. Frickey replied this study will help to identify those specifics, but he did believe it would be feasible through easements, some of which are already in place. Commissioner Stephens stated these improvements would be beneficial to all properties in the area; therefore, garnering the easements should not be extremely difficult. She agreed with Commissioner Francis about examining the area holistically. She asked if there has been any outreach regarding small business retention. Frickey replied the URA has not yet done any outreach; however, some outreach through his office has occurred. Interim Executive Director Birks stated he is also the Director of the City’s Economic Health Office, which is actively attempting to define locations wherein the City wants to engage businesses and coordination of those efforts could be a good approach. Vice Chair Wise asked if there is any chance of getting some American Rescue Plan Act funding for this project. Interim Executive Director Birks replied that could be examined and the recently passed infrastructure bill could also potentially provide funding. Vice Chair Wise also concurred a more holistic approach would be beneficial. Interim Executive Director Birks replied that will be included in the request for proposal. Commissioner Francis questioned whether the community and stakeholder involvement plan is best suited to the population in the area. Frickey replied the consultant will be sought to provide an outreach plan that is more appropriate for the area. Commissioner Gutowsky asked about the impacts of URA projects improving properties and thereby increasing property values. Frickey replied the URA has not proactively done this type of work before; however, these projects are mutually beneficial for all stakeholders and the increased tax increment would still come to the URA. Caitlin Quander, URA legal counsel, stated the plan area could benefit with additional tax increment from increased assessed property values and property owners could also benefit from increased property values on the open market. She also noted this is just the first stage of this project for the 30% design and staff will need to return to the Board for any additional approval for easement requests or to undertake any type of improvement construction project. Commissioner Francis made a motion, seconded by Commissioner Gutowsky, to adopt Resolution No. 121. Commissioner Francis made a friendly amendment to include the study of green spaces and Creekside Park enhancements. Commissioner Gutowsky accepted the amendment. 1.1 Packet Pg. 7 Attachment: May 26, 2022 (11822 : Minutes - 0526) City of Fort Collins Page 449 RESULT: RESOLUTION NO. 121 ADOPTED [UNANIMOUS] MOVER: Emily Francis, District 6 SECONDER: Susan Gutowsky, District 1 AYES: Stephens, Wise, Gutowsky, Pignataro, Francis, Peel, Draper EXCUSED: Smith, Arndt, Canonico, Ohlson 4. 2021 Annual Report. (No Action Taken) The purpose of this item is to share the Urban Renewal Authority 2021 Annual Report with the Board. The annual report highlights projects from 2021 and provides an update on tax increment collection. To date, the North College Plan Area has generated $32.7 million in tax increment revenue and the Prospect South Plan Area has generated $7.5 million in tax increment revenue. Clay Frickey, Redevelopment Program Manager, presented the 2021 Urban Renewal Authority annual report noting the biggest accomplishment was getting the community investment plan adopted for Prospect South. He discussed the work done on North College Plan Area community hub and projects being planned in conjunction with the City of Fort Collins and the Midtown Business Improvement District. Commissioner Francis asked about the North College community hub timeline. Frickey replied the kickoff meeting was held in April and another meeting was held last week with 15 engaged community members. He stated the plan is to test out some of the ideas for inclusion in the community hub during the time community partners and a location are being sought. He noted staff is attempting to be opportunistic with property sales in the corridor. Commissioner Gutowsky asked how the community members were chosen. Frickey replied they were part of the initial engagement for the North College Community Investment Plan and they are mainly Spanish-speaking residents of the manufactured homes in the area. He noted any community members are invited to participate. Commissioner Gutowsky asked if the community hub is planned to be a Hispanic cultural center or a community hub for all. Frickey replied many of the resources will be focused on the Latinx community; however, other resources will also be available that will appeal to all members of the community, such as work force development and tutoring. Vice Chair Wise commented on the importance of the URA not providing exclusive projects. RESULT: NO ACTION TAKEN 5. Retreat Follow-up. (No Action Taken) The purpose of this item is to continue discussing topics brought up at the December 2021 Board retreat. This is the third retreat follow-up session. At this follow-up session, staff would like to discuss how staff and the Board can best work together to achieve the goals and objectives of the Urban Renewal Authority. Clay Frickey, Redevelopment Program Manager, provided a summary of the URA retreat and follow-up sessions. He stated today’s topic is related to what structure supports the work of the Board. He requested input regarding how much the current organizational structure supports the strategic plan and how the Board and staff can work best together to achieve the goals of the URA. 1.1 Packet Pg. 8 Attachment: May 26, 2022 (11822 : Minutes - 0526) City of Fort Collins Page 450 Chris Hutchinson, Trebuchet Group, discussed the pros and cons of the current make-up of the Board, which includes all members of City Council plus representatives from the taxing entities. He discussed other possible structural options and Frickey noted there are a wide variety of URA Board structures in other municipalities. Interim Executive Director Birks noted state statute allows only one Council member to be appointed if the structure changes to an appointed Board; however, the Council retains the ability to make all appointments other than the taxing entities which would remain regardless and would be appointed by those entities. He also noted the Council would retain the role of making findings of blight and approving renewal plans with any Board structure. Commissioner Francis asked if the structure of the Board has been found to be a problem. Frickey replied in the negative but stated staff wants to ensure the structure is set up well to achieve the goals of the strategic plan. Vice Chair Wise stated there is great value in having the entire Council be part of the Board as the URA priorities are based off City priorities. Interim Executive Director Birks noted part of the discussion may be related to Council’s workload and capacity as the city continues to grow and while a change in structure may not be beneficial now, it may be in the future. Vice Chair Wise suggested having more front end work done by a Board subcommittee could be helpful. Commissioner Francis suggested this may be a better conversation for Council to consider. Commissioner Stephens commented on the difficulty of having other community members interested in serving on the Board and noted Council would still need to adopt plans and read materials; therefore, it may not be much of a time saving benefit. Commissioner Draper concurred it is beneficial for the taxing entities to work with the entire Council. Interim Executive Director Birks noted Council would be adopting plans but would not be involved in implementation items such as appropriations, should an appointed Board be in place. Vice Chair Wise stated there is great value in having the perspective of the entire Council for input on projects. He stated he does not believe there is an issue with an unbalanced Board. Commissioner Francis suggested the possibility of having fewer meetings. Interim Executive Director supported Vice Chair Wise’s idea regarding possible work of a subcommittee as it is a step toward delegation, but it would be delegation of the already existing membership. He noted having the monthly meetings calendared is helpful. Frickey summarized the discussion to retain the Board structure with possibly adding subcommittee work and considering the meeting cadence. He also noted memos could be used to provide updates. 1.1 Packet Pg. 9 Attachment: May 26, 2022 (11822 : Minutes - 0526) City of Fort Collins Page 451 RESULT: NO ACTION TAKEN • OTHER BUSINESS Frickey suggested cancelling the June meeting and received no objections. • ADJOURNMENT The meeting adjourned at 6:27 PM. ______________________________ Chair ATTEST: ________________________________ Secretary 1.1 Packet Pg. 10 Attachment: May 26, 2022 (11822 : Minutes - 0526) Agenda Item 2 Item # 2 Page 1 AGENDA ITEM SUMMARY July 28, 2022 Urban Renewal Authority Board STAFF Clay Frickey, Redevelopment Program Manager SUBJECT North College Property Acquisition EXECUTIVE SUMMARY The purpose of this item is to consider three activit ies related to potentially acquiring property in the North College Plan Area: 1. Begin negotiations for acquiring the Albertsons site and two adjoining buildings; 2. Discuss funding options with City staff and the Council Finance Committee; and 3. Conduct a commercial real estate appraisal of the Albertsons site and two adjoining buildings. Country Club Corners, the strip mall at the southeast corner of College Ave. and Willox Ln., developed in 1995. Albertsons anchored this strip mall. After a series of property sales, Albertsons closed in 2014 and has sat vacant since. Albertsons entered into a lease with the property owner that expires in 2030. The Covenants, Conditions, and Restrictions (CC&Rs) on the property have made filling this vacancy and others wi thin Country Club Corners challenging. As a result, the shopping center has fallen into disrepair. Purchasing the property could help the Authority achieve several goals and help create a more vibrant North College. BACKGROUND / DISCUSSION In 2019, the Urban Renewal Authority convened a series of workshops for North College community members in collaboration with the Institute for the Built Environment and The Family Center/La Familia. The purpose of these workshops was to understand how the URA could best invest in North College over the last decade of the URA’s tax increment generation period. Community members frequently asked what the long -term plan was for the old Albertsons site. Community members see the vacant Albertsons site as a detriment to thei r community. Participants in the workshop series highlighted the Albertsons site as a key opportunity for investment. In conjunction with the URA’s growing reserve of unpledged tax increment, staff have done more research on the former Albertsons site to s ee if it is a good candidate for purchase and redevelopment. Staff have included research and background on the two inline buildings adjoining the former Albertsons site as well. Redevelopment of the former Albertsons would be impractical without also acqu iring the two adjoining inline buildings. Property Summary The site in question contains three buildings: the former Albertsons and two inline buildings attached to the former Albertsons. Each has a distinct history and are in various states of occupancy c urrently. The table below provides an overview of each property. The narrative that follows provides more details on each property along with staff’s level of engagement with the current property owners. 2 Packet Pg. 11 Agenda Item 2 Item # 2 Page 2 Address Most Recent Tenant Current Owner Most Recent Sales Price 1630 N College H&R Block Maria’s Braiding JT Enterprises LLC Estes Park, CO $795,000 (2019) 1636 N College Albertsons Realty Income Corporation San Diego, CA $8,665,557 (2010) 1642 N College Sparks Overland College Country Club LLC Northglenn, CO $2,800,000 (2017) 1630 North College Background The southern inline building attached to the former Albertsons site contains multiple tenant spaces with the address 1630 North College. Like 1642 North College, this inline building developed alo ngside Albertsons and opened in 1995. Numerous tenants have occupied these spaces over the past 25 years. Most recently, H&R Block occupied one tenant space at 1630 North College and Maria’s Braiding occupies another. H&R Block is temporarily closed. 1630 North College, like 1642 North College, has also seen various owners since opening. In 1998, the property sold for $3.2 million, then for $2.8 million in 2007, then for $2.8 million in 2017, and most recently for $785,000 in 2019. JT Enterprises LLC in Est es Park, CO is the current owner. Staff have not corresponded with JT Enterprises LLC to date. Albertsons Background The former Albertsons is in the Country Club Corners subdivision. Albertsons opened its store in Country Club Corners in 1995. Albertsons sold the property to VEREIT, a real estate investment trust, in 2010 for $8,665,557. At that time, Albertsons entered into a 20-year lease with VEREIT. This lease runs through 2030. Albertsons closed the store in 2014 due to growing competition in the Fort Collins market. In 2015, Albertsons and Safeway merged and retained its lease with VEREIT. Since the closure of Albertsons, numerous tenants have explored a sublease with VEREIT. None of the interested tenants have been able to reach an agreement on leasing terms. One barrier to leasing space in the former Albertsons space and the inline stores next door have been the Covenants, Conditions, and Restrictions (CC&Rs) on the property. Safeway has been unwilling to make exceptions to the CC&Rs that prevent uses such as bakeries, seafood, butchers, and other businesses that could potentially compete with a grocery store from locating at Country Club Corners. Staff reached out to Safeway to discuss the status of the former Albertsons site in November 2020. Safeway never responded to staff’s request to meet and discuss. In November 2021, Realty Income Corporation acquired VEREIT. Staff have not corresponded with Realty Income Corporation. With no tenant and a growing list of deferred maintenance, the former Albertsons site has fallen into further disrepair. Potential tenants have shared with staff that they believe the former Albertsons site would require $3 million of investment to make the building habitable. In its current state, the Albertsons property is a barri er to achieving the goals of the North College Urban Renewal Plan and the Authority’s Strategic Plan. 1642 North College Background 1642 North College is the address of the inline building on the north side of the former Albertsons building. The building is 3,142 square feet per the Larimer County Assessor’s records. This property was the location of Bullfrog Wine and Spirits before Bullfrog moved to the North College Marketplace (location of King Soopers on North College). Since Bullfrog vacated the buildi ng, there have been several tenants that have occupied the space. The current tenant is Sparks Overland, a company that sells camping equipment. 1642 North College has changed hands several times since it developed alongside Albertsons in 1995. The propert y sold for $3.2 million in 1998, then for $2.8 million in 2007, and most recently for $2.8 million in 2017. College Country Club LLC based in Northglenn, CO currently owns 1642 North College. Staff have not corresponded with College Country Club LLC to date. 2 Packet Pg. 12 Agenda Item 2 Item # 2 Page 3 Strategic Plan and Criteria Alignment Staff evaluated the acquisition of the former Albertsons site against the criteria established by the Authority Board earlier in 2022. Staff’s assessment is as follows: Historic context, environment, and building (c onnect to past, embodied energy, sense of place) Connecting residents to what they want to do (to schools, work, home, rivers, Denver) Housing options for everyone Sense of community - neighborhoods Community charisma and personality Avoid unfair impacts to government partners Benefits for all residents - no one left out Avoid cookie-cutter, strip mall development “That was amazing” projects in 30 years Avoid perception of entitlement to developers Everyone has high quality of life through equitable (opportunities and means) access This assessment assumes the Authority acquires the property that facilitates a redevelopment that provides community benefits. The sense of community and charm would increase by turning a vacant s torefront into a development that better reflects the values and needs of the North College community. A redevelopment that was mixed-use would also make the Country Club Corners strip mall into a more vibrant place that is not a cookie cutter strip mall. All elements in yellow indicate criteria that a redevelopment could achieve depending on the details and implementation of the redevelopment. Grey criteria are ones that are difficult to assess or would have a neutral impact. Acquiring the former Albertsons site aligns with the Authority’s Strategic Plan. Elements of the Strategic Plan with which this proposal aligns include: Why We Exist - Our residents feel greater civic pride and sense of belonging when reinvestment helps transform blighted areas into vibrant neighborhoods and amenities which enhance the local character, culture, economy, and quality of life. What We Do - Eliminate blight by catalyzing projects and accelerating investments that would not otherwise happen, thereby creating improvements with lasting value through tax increment financing. Guiding Principles - Stewardship, Strategic Purchasing the former Albertsons site would transform a languishing strip mall into an area that better meets the needs of the North College community. This investment is strategic and is a use of tax increment that would enable a development that would otherwise not happen due to the lease agreement between Albertsons and the property owner. Proposed Next Steps Staff seeks authorization for the following: 1. Begin negotiations for acquiring the Albertsons site and two adjoining buildings 2. Discuss funding options with City staff and the City Council Finance Committee 3. Conduct a commercial real estate appraisal of the Albertsons site and two adjoining buildings These steps will allow staff to explore acquiring the property for the purposes of redeveloping the site in a way that better aligns with the goals of the Authority. 2 Packet Pg. 13 Agenda Item 2 Item # 2 Page 4 CITY FINANCIAL IMPACTS The financial impact to the Authority will depend on the price of the property. Staff will have a clearer sense of the financial impact after conducting further due diligence. ATTACHMENTS 1. Powerpoint Presentation (PDF) 2 Packet Pg. 14 July 28, 2022 North College Property Acquisition ATTACHMENT 1 2.1 Packet Pg. 15 Attachment: Powerpoint Presentation (11820 : North College Property Acquisition) Ti meline of Events Country Club Corners develops Inline buildings sell Inline buildings sell again VEREIT purchases Albertsons 2 Albertsons closes Safeway and Albertsons merge 1642 N College sells Realty Income Corporation acquires VEREIT 1995 1998 2007 2010 2014 2015 2017 2021 2.1 Packet Pg. 16 Attachment: Powerpoint Presentation (11820 : North College Property Acquisition) 3 2.1 Packet Pg. 17 Attachment: Powerpoint Presentation (11820 : North College Property Acquisition) 4Former Albertsons Site 2.1 Packet Pg. 18 Attachment: Powerpoint Presentation (11820 : North College Property Acquisition) 51642 N College 2.1 Packet Pg. 19 Attachment: Powerpoint Presentation (11820 : North College Property Acquisition) 61630 N College 2.1 Packet Pg. 20 Attachment: Powerpoint Presentation (11820 : North College Property Acquisition) 71630 N College 2.1 Packet Pg. 21 Attachment: Powerpoint Presentation (11820 : North College Property Acquisition) Property Overview Ad dress Most Recent Te nant Current Owner Most Recent Sales Price 1630 N College H&R Block Maria’s Braiding JT Enterprises LLC Estes Park, CO $795,000 (2019) 1636 N College Albertsons Realty Income Corporation San Diego, CA $8,665,557 (2010) 1642 N College Sparks Overland College Country Club LLC Northglenn, CO $2,800,000 (2017) 8 2.1 Packet Pg. 22 Attachment: Powerpoint Presentation (11820 : North College Property Acquisition) Criteria Alignment Historic context, environment and building (connect to past, embodied energy, sense of place) Connecting residents to what they want to do (to schools, work, home, rivers, Denver) Housing options for everyone Sense of community -neighborhoods Community charisma and personality Avoid unfair impacts to government partners Benefits for all residents –no one left out Avoid cookie-cutter, strip mall development “That was amazing” projects in 30 years Avoid perception of entitlement to developers Everyone has high quality of life through equitable (opportunities and means) access 9 2.1 Packet Pg. 23 Attachment: Powerpoint Presentation (11820 : North College Property Acquisition) Strategic Plan Alignment •What We Do •Why We Exist •Guiding Principles •Stewardship •Strategic 10 2.1 Packet Pg. 24 Attachment: Powerpoint Presentation (11820 : North College Property Acquisition) Proposed Next Steps Staff seeks authorization for the following: 1.Begin negotiations for acquiring the Albertsons site and two adjoining buildings 2.Discuss funding options with City staff and the City Council Finance Committee 3.Conduct a commercial real estate appraisal of the Albertsons site and two adjoining buildings 11 2.1 Packet Pg. 25 Attachment: Powerpoint Presentation (11820 : North College Property Acquisition)