HomeMy WebLinkAboutMemo - Mail Packet - 11/29/2022 - Memorandum From Clay Frickey Re: Albertsons Update
Urban Renewal Authority
222 Laporte Ave.
Fort Collins, CO 80522
970.416.2517
970.224.6107 - fax
fcgov.com
MEMORANDUM
DATE: November 21, 2022
TO: Urban Renewal Authority Board
THRU: Kelly DiMartino, City Manager
Tyler Marr, Deputy City Manager
Josh Birks, Deputy Sustainability Officer
FROM: Clay Frickey, Redevelopment Program Manager
RE: Albertsons Update
Bottom Line:
The URA Board gave staff permission to begin conducting due diligence related to acquiring the former
Albertsons site in July. Staff have completed the three tasks initially authorized by the Board. In January,
staff requests an Executive Session to share the findings of the appraisals of the three properties along
with potential financing options for acquisition.
Background:
At the Board’s regular meeting in July, the Board provided direction for staff to pursue three courses of
action related to acquiring the former Albertsons site at 1636 N College Avenue:
1. Begin discussions 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
This memo provides an update on the three actions approved by the URA Board.
Begin Discussions for Acquiring the Albertsons Site and Two Adjoining Buildings
Staff began reaching out to all the property owners in August. Staff has discussed redevelopment
opportunities with the property owners of the two adjoining buildings. Both property owners have been
responsive and wish to keep communication channels open as discussions continue about the future of
Country Club Corners.
Staff has made numerous attempts to contact the property owner of the former Albertsons. Albertsons
and the property owner have not responded to URA staff. Staff were able to talk on the phone with the
listing agent for the Albertsons site in late August. The listing agent indicated Albertsons retained them
to find a sub-lease for the site or someone who would be able to buy Albertsons out of their lease. The
listing agent indicated to staff that they are not in communication with the property owner.
DocuSign Envelope ID: 5CC5A11E-B655-4DFE-A39D-8E61F798D40F
Discuss Funding Options with City Staff and the City Council Finance Committee
URA and City Finance staff met to discuss funding options on November 17. City staff indicated a
willingness to consider partnership opportunities to fund acquisition of the properties while expressing a
preference for the URA to seek financing in the private market. URA staff are exploring private financing
options to see which financing option is most viable. Staff will present these financing options to the
Board in January.
Conduct a Commercial Real Estate Appraisal of the Albertsons Site and Two Adjoining Buildings
The URA’s on-call appraiser completed appraisals of the three properties in October and November.
Staff would like to share these appraisals with the Board in an Executive Session in January. This will give
the Board a sense of the amount of capital it will require to potentially acquire all three sites and discuss
how to proceed.
DocuSign Envelope ID: 5CC5A11E-B655-4DFE-A39D-8E61F798D40F