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ITEM 1 - CALL TO ORDER
Chairman Steve Burkholder called the meeting to order at 7:49 p.m. in the Council Chambers of the Lakewood Civic Center, 480 South Allison Parkway, Lakewood, Colorado.
ITEM 2 - ROLL CALL
Members in attendance: Steve Burkholder, Cheryl Wise, Tom Booher, Ray Elliott, Mike Stevens, Barbara Martin, Debbie Koop, Jackie Herbst, Carol Kesselman, and Jean Saum
Absent: Bob Murphy
ITEM 3 - RESOLUTION LRA 2003-07 - A RESOLUTION FOR DECLARING THE INTENT OF THE LAKEWOOD REINVESTMENT AUTHORITY TO ACQUIRE CERTAIN PROPERTIES IN THE COLFAX/WADSWORTH REINVESTMENT AREA FOR THE SPECIFIED PUBLIC PURPOSE OF REDEVELOPMENT IN CONFORMANCE WITH THE COLFAX/WADSWORTH REINVESTMENT PLAN, FOR GOOD FAITH NEGOTIATIONS TO ACQUIRE SAID PROPERTIES, AND AUTHORIZATION TO INITIATE AN ACTION IN EMINENT DOMAIN TO ACQUIRE SAID PROPERTIES IN THE EVENT GOOD FAITH NEGOTIATIONS DO NOT RESULT IN AN AGREEMENT TO ACQUIRE SAID PROPERTIES
Executive Director Mike Rock stated that the action LRA is being asked to take is similar to the action LRA took on the Belmar Project. It is the process of transforming property that has deteriorated into an asset for the community. The City has been concerned about the Colfax/Wadsworth property since 1992, when K-Mart left the site. Over the years, the property has suffered and is no longer a true retail center.
The City waited for a number of years to see if the private sector marketplace would step in and solve the problems on that site and redevelop it into a productive asset. That didn't happen for a number of reasons. For one, there are multiple owners on the site and a very complex ownership property line pattern. For another, there are drainage issues on the site and it's virtually impossible to address those drainage issues on anything less than an area wide basis, which means again that all the property owners need to come together and make the investment.
It has taken many years for the project to come to fruition and the City hopes to see construction start in early 2004. The Reinvestment Authority identified the urban renewal plan for the area in June of 2002, then entered into a redevelopment agreement with Wal-Mart in June of 2003. Now it's time to implement that redevelopment agreement. Wal-Mart has been on site doing the environmental assessment work. The appraisal process has been underway. In order to implement the project and implement the redevelopment agreement, the acquisitions of property need to be completed by the end of the year. Wherever possible, voluntary acquisitions either have been made or are being negotiated. Where it is not possible, it is necessary for the Authority to use eminent domain, which is one of the fundamental reasons for having a reinvestment authority. In some instances, eminent domain is necessary because of a complicated ownership pattern or ownership by a trust. In some situations, eminent domain acquisition is a friendly one, whereby the property owner prefers to have acquisition through eminent domain because it has certain tax benefits, particularly in terms of allowing a greater period of time to reinvest the proceeds from the sale. In other instances, there is simply a disconnect between what the property owners' demands for the property and what the property is really worth. In all cases, the property owner is paid for the property either at a value negotiated voluntarily or established by the courts through an appraisal process. In all cases, the property owner is made whole on the property. That process is the same that the City uses in acquiring rights-of-ways, for example or in some cases, parklands or other public property.
In addition, there is a relocation process in place for everyone who is displaced by this development. It is very consistent with the steps taken a number of years ago to get the Belmar Project underway. At the time, that was somewhat contentious as well. In fact, that process worked very well. All the acquisitions have been complete now for a period of time. All the relocations are done and were done very professionally and very fairly. Mr. Rock stated that the Authority is being asked to allow the same process to move forward on the Colfax/Wadsworth project.
Public Comment:
Don Matoush - 850 Allison Street - Lakewood, Colorado
Mr. Matoush stated that he is a taxpayer that has lived in Lakewood for over
30 years. He stated he lives near the Colfax/Wadsworth area. He asked if the
business owners and property owners inside the renewal zone were notified of
the preliminary agreement between Lakewood and Wal-Mart in June of 2003. If
the owners were notified, he wanted to know how and when they were notified.
If some were notified and not others, he wanted to know why. He stated that
fairness is essential.
Walt Heidenfelder - 940 South Yarrow - Lakewood, Colorado
Mr. Heidenfelder stated that the issue was discussed some time ago at a study
session. He asked what tax benefits Wal-Mart is expected to have in the future.
He asked what the tax revenue is to the City at the present location of Wal-Mart
in order to compare the present to the future and to see what benefit Wal-Mart
would get. He stated that he realized certain information is proprietary and
asked the Authority how they are making a decision and if they know what the
revenue is from the current location and asked if they have compared it to future
projections. He stated that many people would be upset if it turns out that
Wal-Mart receives a disproportionate cut in their future tax payments to the
City. He stated he realized there is a value in the redevelopment itself because
of the blighted area.
Mayor Burkholder closed the public hearing.
Vice-Chair Barbara Martin made a motion to adopt Resolution LRA 2003-7. It was seconded by Carol Kesselman.
Mayor Burkholder stated that the Authority was informed and on July 12, 2003, received a very detailed memo explaining the entire public finance agreement. The Authority has been very well informed of what is happening.
Mike Rock stated that information specific to any retailer is proprietary. The tax revenues are privileged from store to store. The Authority has received confidential information on that matter. In addition, the redevelopment process has been discussed publicly and extensively for nearly five years. There have been televised study sessions, specifically so the discussions around the redevelopment agreement were made available to the public. The redevelopment agreement is not a preliminary one; it is in fact an executed redevelopment agreement. Wal-Mart pays a large share of taxes into the City of Lakewood. As a retailer, it is the largest taxpayer. Basically, the City will receive a guaranteed amount of revenue from the site of $1 million per year. In addition, the City will share in additional revenues over time. The current site at 2nd & Wadsworth will stay open at this time.
LRA Director Becky Clark stated that the revenue base for the property at its current status is only $80,000 per year. It will be increased, at a minimum, to the guaranteed $1 million per year. The redevelopment plan was first adopted in 1999. The revised plan was adopted in 2002. From 1999 to 2002 is the time period in which various redevelopment scenarios were being contemplated. Near the end of 2000, Wal-Mart became serious about redeveloping the site. There is now a redevelopment plan with the signatures of the LRA, City Council, and Wal-Mart. Regarding notification, the actual property owners, tenants, individuals that are operating out of the businesses in that location have been notified directly by the broker that is working both in tandem with LRA and Goldberg Properties. They are doing the private acquisitions and have been taking care of the notification process. Those that cannot be privately acquired may be purchased through eminent domain procedures. Toward the end of December 2003, all of the properties and tenants will have been relocated so that Wal-Mart can get on site and proceed with environmental remediation and demolition. New construction should begin in February of 2004.
Vote: 10 Ayes. 0 Nays. The motion carried.
ITEM 4 - APPROVAL OF MINUTES
Barbara Martin made a motion to approve the minutes of the Special Meeting of the Lakewood Reinvestment Authority of June 30, 2003. It was seconded by Carol Kesselman.
Vote: 10 Ayes. 0 Nays. The motion carried.
ITEM 5 - ADJOURNMENT
There being no further business to come before the Authority, Chairman Burkholder adjourned the meeting at 8:09 p.m.
Submitted by
Margy Greer, City Clerk
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