A bill for an Ordinance authorizing and approving an Amended and Restated Ironworks Foundry Urban Redevelopment Plan to expand the boundaries of the Urban Redevelopment Area, to authorize the Phase Two Urban Redevelopment Project and to create the Phase Two Property Tax Increment Area and the Phase Two Sales Tax Increment Area (FINANCE & SERVICES) Approves the Amended and Restated Ironworks Foundry Urban Redevelopment Plan authorizing the expansion of the Urban Redevelopment Area, addition of a project, creation of the Phase Two Property Tax Increment Area and creation of the Phase Two Sales Tax Increment Area, in Council District 9. The Committee approved filing this bill at its meeting on 5-13-15.
The estimated taxable value following redevelopment is anticipated to generate approximately $400,000 per year in net property tax increment and approximately $380,000 per year in net sales tax increment. If we were to use only these incremental tax revenues to reimburse the developer for the eligible expenses of the $6.5 million, the repayment would occur in approximately 21 years. However, the amendment to the Cooperation Agreement will allow for the incremental sales and property taxes from the Source Project, which are approximately $325,000 annually, to also be used to repay the Phase two project obligation. This combined repayment structure is expected to shorten the repayment period by approximately seven years, saving approximately $1.9 million in total tax increment reimbursement payments. The amended and restated urban redevelopment plan must continue to be in conformance with the city's comprehensive plan or Plan 2000 and its relevant supplement. Beginning with comp plan 2000, the project as an approved amendment to the plan for several citywide objectives, policies and actions in the Plan 2000, including encouraging quality infill development that offers opportunities for increased density and more amenities. And that broadens the variety of compatible uses, enhance existing business centers, and establish new business centers in a manner that offers a variety of high quality uses that support Denver's business environment, complements neighborhood residential areas, generates public revenue and creates jobs. Identify areas in which increased density and new uses are desirable and can be accommodated. Support development of neighborhood business centers that serve adjacent residential areas in existing neighborhoods and new neighborhoods within redevelopment areas. And use public private partnerships to facilitate development and redevelopment projects that advance the city's goals and objectives. Blueprint. Denver identifies Brighton Boulevard in general and the area site specifically as an area of change where growth is to be channeled to where it will be beneficial and can best improve access to jobs and services. With fewer and shorter auto trips situated along Brighton Boulevard, the projects as mixed use infill development are consistent with the city's goal of increasing activity along major road and transit corridors. The Source Project created new light industrial retail office and commercial space. The Phase two project furthers and complements the source project by adding a hotel, retail, light, industrial and amenity space. And approximately 300 stalls have structured parking to serve not only the patrons of the projects, but also neighborhood users. The projects together will create a cohesive space that will enhance the existing restaurant and urban marketplace environment, a destination hotel to foster tourism in the River North area, which will catalyze existing and new retail establishments and businesses. The River North Plan states that Brighton Boulevard corridor can become an attractive gateway to downtown Denver from I-70 and calls for the creation of a dynamic and compatible mixture of uses that serves and takes advantage of proximity to downtown and access to I-70. The Phase two project is ideally suited to forward the vision, purpose and goals layout laid out in the River North Plan, including the following. Promoting economic activity. Reactivating a vacant and underutilized site on Brighton Boulevard. Build upon the unique land uses that exist and identify redevelopment sites and opportunities that foster the creation of a compatible mix of uses. Add new development to the current uses and structures, creating a unique environment, both in terms of an eclectic mix of uses and exciting, innovative infrastructure. Encourage land uses that effectively increase the day and nighttime population of the area, providing the impetus for future commercial development. The 38th and Blake Station area plan states that the Brighton corridor is envisioned to have more intense development, with a greater mixture of commercial and employment uses and taller building heights than the area south of the station. The Phase two project furthers a number of objectives at the 38th and Blake Station Area Plan. The Station Area Plan acknowledged that more intense development, taller building heights and a greater mixture of commercial and employment uses are appropriate along the Brighton Boulevard corridor. It also recognized that the Brighton Corridor section of the station area north of the U.P. tracks is envisioned to have more intense development with a greater mixture of commercial and employment uses and taller building heights than the area south of the station. And finally, it noted that Brighton Boulevard is also the front door to the River North District. It should be a place where pedestrians find interesting shops and galleries and feel welcome to walk or visit. The general objectives of this urban redevelopment plan are to reduce or eliminate blighted conditions and to stimulate the continued growth and development of the urban redevelopment area. The Phase two project meets the following objectives of the amended and restated Ironworks Foundry Urban Redevelopment Plan to renew and improve the character and environment of the Urban Redevelopment Area and its surroundings by preventing or ameliorating economic, physical and environmental deterioration. To eliminate the present and growing factors which contribute to the blight in the urban redevelopment area. Such blighting factors are detrimental to the community and represent an economic liability to the city. To more effectively use underdeveloped land within the urban redevelopment area. To build to build upon present economic strengths near the urban redevelopment area. To encourage and protect existing development immediately adjoining the urban redevelopment area. By creating conditions from which these adjoining areas can draw new economic strength to improve the economy of the area by stabilizing and upgrading property values to enhance the current sales tax base and property tax base within the city. By stimulating the growth in assessed valuation and sales tax collections within the Urban Redevelopment Area to provide access to employment opportunities for low income and unemployed Denver residents. To create a local business climate that serves the neighborhood so that area residents can shop in the neighborhood, which could enhance city air quality improvement efforts. And finally, to carry out the objectives of the Plan 2000. In addition to making the finding of blight, council must also make other findings required by the Colorado Urban Renewal Law. These findings include that a feasible method exists for relocation of displaced individuals and families and business concerns. No individuals or families will be displaced from dwelling units as a result of adoption or implementation of the amended and restated Ironworks Foundry Urban Redevelopment Plan. Therefore, no relocation plan is necessary for individuals or families. Similarly, no business concerns will be displaced as a result of adoption or implementation of the amended and restated Ironworks Foundry Urban Redevelopment Plan. Therefore, no relocation plan is necessary for business concerns. Written notice of this public hearing has been provided to all property owners, residents and owners of business concerns in the resolution setting this public hearing. City Council requested Dura to undertake this task. Written notice was mailed first class mail to all known property owners, residents and owners of business concerns in the Ironworks Foundry Urban Redevelopment area at least 30 days prior to this public hearing. No more than 120 days have passed since the commencement of the public hearing before City Council on the plan. Tonight is the first public hearing before Council on the amended and restated Urban Redevelopment Plan. The amended and restated Ironworks Foundry Urban Redevelopment Plan contains no property that was included in a previously submitted urban redevelopment plan that Council failed to approve. Conformance with with the Denver Comprehensive Plan. On May 20th, 2015, the Denver Planning Board unanimously found that the amended and restated urban redevelopment plan conforms with the Denver Comprehensive Plan and its applicable supplements. A letter to this effect has been submitted as part of the record of this hearing. The plan provides maximum opportunity for redevelopment by private enterprise. 3330 Brighton Boulevard, LLC currently owns the Phase two parcel and is prepared to undertake the project. The school district number one in the city and county of Denver has been permitted to participate in an advisory capacity concerning the use of tax increment. Denver Public Schools has been consulted and has provided a letter of support for the amended and restated plan and the use of tax increment financing. A copy of this letter has been submitted as part of the record of this public hearing. Finally, the city and county of Denver can adequately finance or agreements are in place to finance any additional city and county of Denver infrastructure and services required to serve redevelopment within the amended and restated Ironworks Foundry Urban Redevelopment Area for the period during which incremental property taxes are paid to the authority. The plan allows for cooperative agreements between the city and Doura to address additional infrastructure requirements should they arise. In closing, the Denver Urban Renewal Authority is pleased to bring forward this amended and restated urban redevelopment plan to facilitate the full redevelopment of the area. As I mentioned earlier, the Source Project, which has been very successful, created new light industrial retail office and commercial activities along Brighton Boulevard. The Phase two project furthers and complements the source project by adding a hotel, retail, light, industrial and amenity space as well as structured parking to serve not only the patrons of the projects but also the broader neighborhood. These projects together will create a cohesive space that will enhance the existing restaurant and urban marketplace environment. A destination hotel will foster tourism to the River North area, which in turn will catalyze existing and new retail establishments and businesses and continue to support the city's vision for this important corridor. We ask for your favorable consideration of this amended and restated urban redevelopment plan, and I will be happy to answer questions when the time is appropriate. Thank you. Huggins. I'm going to call the four speakers that we have. First speaker is Kyle Zeppelin, second speaker McKee Zeppelin, third speaker Jason Caplan and fourth speaker Justin Croft. No. Thank you, Madam President. And members of council. My name is Kyle Zeppelin from Zeppelin Development. Address is 3457 Rigsby Court in Denver. Just wanted to provide some more background on the project. The source, as Tracy mentioned, is hopefully a good, good addition to the community in Reno and Denver. It includes it's basically a new version of an old idea, a public market and includes a butcher, a baker, a brewer, a couple acclaimed restaurants. The goal is to create a compatible flow of people that supports all the businesses and hopefully a great experience. At the same time, the opportunity with the neighboring site is really to expand on on the success of the project and how well it's been received. There's what we're doing on that side is basically adding 300 structured parking spaces, which is kind of a necessary evil to be able to provide that. The reality is that people do drive and try to accommodate that. There's we're basically doubling the size of the market. HALL So it's a modern form of what you see at the source. A lot of complementary functions there. We have a kitchen store. There's a significant amount of makerspace. So there is a ceramicist, there's pie making. And that's that is really combining basically the production elements with the experience and getting to know some, some of the people behind the products. So not having things just show up on your plate or in your glass, but actually having that become part of the experience. There's a major art component and then we're also including a major feature of the project is the hotel function. So it's a 100, 100 room hotel. It reflects a lot of the same design sensibilities. There's glass, garage doors and rooms. He experienced the light and and the views, but also be able to open up to the fresh air, a different kind of design than is typical. The whole character of the place is really drawing, drawing on what you see throughout the neighborhood. It's independent, it's local, it's creative. And they go with with the hotel. The market hall is to really be able to the in the expansion is to be able to reach a much broader audience, more of a national, international audience, to want to come experience some of the more interesting things, interesting people throughout the region. So appreciate your your consideration of the project and happy to answer any questions. Thanks very. Much. Thank you. Our next speaker, Micki Zeppelin. Good evening, Madam President, and members of Council. Thanks for another opportunity to speak to you. I've been involved in Rhino for some 15 years, and with the support of council and particularly Council President Monteiro, we were able to do the source and open in 2013. That project has really been a transformative project, I think. Tracy mentioned some of them, some of the assets, but it's really changed the neighborhood. And last week you heard on the bid and the give and I think it's as a gathering place, it was largely responsible for those things happening. It was really a place for community and has really become part of really the city environment. It's really created a a real place in the city. And I think with this new iteration, we're moving toward not only a place for the city, but really a national place. The hotel really is a unique kind of place that doesn't and won't exist in any other city. And I think you're going to see lots of travelers and nationally and internationally come to the source of this project. And it's really an important part of National Western. We've talked about National Western as appealing to the tourist. Also with a great art community. We're going to see really people attracted to Denver and to this arts community. And I think it adds significantly to the prestige of Denver, and I'm pleased to be part of it and. Hope you will support us. Thank you. Thank you. Jason Kaplan, followed by Justin Croft. Thank you. Council President and members of the city council. I'm Jason Kaplan, and I've been involved in commercial and residential development since about 2002 in Colorado and nationally. I represent River North Investment Partners and I am partners and co-developer with the Zeppelins on this project. It's been interesting and a lot of fun to work with the Zeppelins because they they as as you witnessed with the source, they have a specific vision that is very unique to real estate development. And in conjunction with that, they are really great at getting things done when there is a challenging project. And I really respect that. It's really good to be their team member. In addition to them, another very important team member is the group behind the St Julian in Boulder. And they are our operating partner. And one thing that's great about them, well, there's a bunch of things, but one thing specifically is their local. Another thing is they they understand the the superior quality of hospitality that's needed to function a hotel at the highest level. And then the last thing that I'd like to mention is they have a joint vision with us or together where they see the opportunity to provide a unique, a non-corporate hotel experience in the River North neighborhood. So with the team and with with DRA, we've, we've focused on a lot of different aspects for the development, but a few I'd like to specifically point out are to maximize the zoning of 12 stories. You typically are seeing one, two, five story buildings and, and in hopes of your support, we'll be able to utilize that zoning. Another thing is the 300 space parking structure in an area where you typically see surface parking lots. Another thing that the project will do is enable regional stormwater project. And then last but not least, and maybe the the most important is it really creates a dynamic project in the area in River North and on Brighton, which everybody really wants to see. And I, I'm available for questions when the time time is and I appreciate your support and, and I hope for your consideration or I appreciate your consideration and hope for your support. Thank you. Thank you. Justin Croft. Thank you, Madam President, and members of Council. My name is Justin Croft. And I am here with Zeppelin Development. I was project manager on the sauce and I'm serving as project manager on this project in front of you today. I was here last week to ask for your support on the Rhino bid and the gig, and just want to say thank you again for your support on that project. The vision that's been spoken about today, I just want to reiterate for this project is that it really is a highly public project and a project that we believe speaks to a lot of the values of the neighborhood, which I've had the good fortune to really understand closely in my work with the Steering Committee on the bid of the guide and doing some work with the art district as well. Just to briefly mention a few of the items that we believe that this project supports as far as the values of the neighborhood, one that it activates the street contributes to vibrancy in the district in that way, that it attracts small and supports small and creative businesses, which is really a vision that we have to attract and support independent businesses. A lot of makers in this project, and we believe that with the hotel component there will be even added support and people seeking out these specific independent businesses. It's a development that supports biking, walking and use of transit in the district being what will be a very active node, even more so than it is today in close proximity to the 38th and Blake Station and really supporting multimodal use. Also, with travelers coming from the airport and being able to utilize the hotel, we also believe that it maintains some of the gritty character of the area while working to enhance its livability. And you'll see there are a lot of kind of gritty elements with the architecture. Hard to read from this rendering, but they include use of recycled concrete, use of corrugated metal and some of the other things that up development has been known for. And then also, of course, contributing to a. Regional parking solution for. Right now. So thank you very much and asking for your support today. Thank you. That concludes our speakers. Are there questions for members of council? Councilwoman Shepherd. Thank you, Madam President. So I think one of your last points, Justin, is something that I want to hone in on. So we're talking about 305 parking spaces in the structured parking lot. And so that was my question. Is it meant. To serve just the new development or the source? And then you talked about a regional solution just then. So if you all could collaborate or elaborate on that, that would be helpful. Yeah. So that parking garage is certainly larger than we would have built parking for this project. So the idea is that it really is publicly available to people who would like to park there and walk in and, you know, travel, visit throughout the district as well as the patrons. Specifically visiting the project. How many spaces are actually. Required for the project itself? 150. Okay, so it's doubling. So I recall in when we went through budget hearings last year, there was funds appropriated, I thought, for curb and gutter. In this. Year's budget on Brighton Boulevard. Is that true? And if that's true, like when does that commence? It's a silly question. Or is that a silly question? Thank you. My name's Andrew Johnston with I'm the manager of financial development for the Department of Finance. Your question was in regards to when with the construction commence on Brighton Boulevard, with the street and the curb and gutter as it's projected to start in first quarter of 2017. So I'm assuming that's before when this project would commence. Is that correct? Or after. If it should be approved? I'm sorry. No. 2016 is when the construction is supposed to commence. Oh, I see. Okay. And then I just want to ask a couple of questions. Is there bus service on Brighton Boulevard going up that way? Okay. And then I recall also as part of that carbon gutter that there would be bike lanes. Are those going to be built in 2016, first quarter as well? So the reconstruction is scheduled to commence in 2016 and the plan is for redoing the entire street curb gutter and it will include bike lanes. Okay. Thank you. And then just finally, a quick comment. I've never heard somebody say that they actually had grittiness as a value. I think that's a very interesting urban design concept. I hope to hear more. Thank you. Councilman Shepherd, Councilman Fox. Thank you, Madam President. I have a question for Tracy. Tracy, in the materials that we received. We talked about the tax increments. It said available at stabilization. I presume that's when it's built out and getting the full amount. Correct. Would you would you translate for me what you intend to get toward this project? I presume the 6,970,000 is the problem. That's what you're solving for. Is that. Correct? The if I may. Let me see if I can find the the gap is 6.5 million. That is what I'll refer to as the principle of the gap. And then so what happens in a reimbursement structure is that that it redevelop or is responsible for still financing those costs. And then the tax increment is used to repay that obligation over time as the tax increment comes in with interest. Okay. So the 6.9 million councilwoman that was on the slide that had the various costs. That is a summary of the type of costs that we would be looking to reimburse. Again, the lion's share of that is the the parking garage. Would you tell me how much money do you intend to put toward this project? That comes, first of all, from the property taxes that it actually has involved in its lot. Then how much in the sales tax? I have the annual, but I don't have the total. And then how much you intend to contribute from the adjacent lot? And then tell me what percentage of public money is going to go toward the whole project? That was a lot of questions. Let's see if I can get them all in order. Well, they all deal with my favorite subject money. Mine too. So the amount of property tax increment that is expected to be generated from the phase two project. So the parking garage, the additional retail in the hotel is $400,000 per year. The sales tax increment from again the hotel project is projected to be $380,000 per year. And then the amount that is currently being collected from the Source Project, which is the number that I have with me this evening, is a combined sales and property tax is 325,000. But I want the total of what you are planning in each one of those lines to contribute. Because what I don't have is the number of years you are expecting each to contribute to the project. Sure. So on the source project, it will be that $325,000 per year starting in 2018, 2019 and going through 2024. That is after the source obligation is repaid and then it allows for that $325,000 or so per year to also be paid to to this project. All of that will be paid to it. The other two amounts, the 400,000 and the 380,000 in property and sales tax increment respectively will begin being paid as soon as it is being generated. So as the project is under construction and is completed, it will begin to generate that tax increment. It will be paid as soon as it is available, even in advance of the amounts coming from the source project. Because again, we have that period of time before the source project is repaid. To then be able to put all of these sources together for a hope for expected repayment in about 14 years from now. But you don't have it broken out according to the source of where it's coming from. No pun intended of the source. The actual line item there. So I apologize, Councilman. I'm not following the the question there. So I just jump to the last question. What percentage of this whole project are you intending to use? Public tax sources, meaning all of those that you've just talked about, those are all taxes that would have gone into the general fund per se. What? Well, actually, now they some of them would have gone into the school district, but they would have all been public tax sources. What percentage are you intending to use for this $41 million project? The six and a half million dollars is about 16%. Of the total project budget. Okay. Thank you. Thank you, Councilman Fox, Councilman Ortega. And a person that. Oh, no. So my first question is for Kyle, if you wouldn't mind coming to the microphone. It wasn't clear from the drawings if parking will continue on the source property or if you're looking to build out the whole front part of that. Assuming that the garage is going to be enough to park both both properties, both structures. So the intent is for the source property for that parking to remain intact. We would go ahead and repave the parking lot that would serve as basically short term parking to serve the source. Right. And then the structured parking would serve basically the surrounding neighborhood, including both hotel and the source. How many spaces do you have on the source site? The source is currently approximately 50, but 50 surface parking spaces. Plus, we use the neighboring lot as as kind of overflow parking. And how many do you have on that site? Approximately 150 spaces over there. Okay. I had one other question, and this is more I don't know if we have anybody from the planning department that was involved in looking at the project. I don't see anybody. Okay. Then I'm going to ask you this question. Tracy and Kyle, you may want to chime in as well. We've been working with the Planning Department and our Office of Emergency Management in looking at just some design issues around developments adjacent to railroad land, where we have consistently railcars that are not always necessarily compatible with either residential or largely populated areas. And I don't know if this is something that has come up so that in the design, looking at how we protect human life in the event that there might be some kind of incident on the rail corridor. I know, for example, in the past we've had various incidents where, you know, some of the residents have had to be evacuated and in so I don't know how much that is part of the thinking in terms of how are we addressing any potential. I know, Kyle, you talked about roll up windows. So can you just speak to that a little bit? So the the site layout has the parking structure at the back of the site. So that effectively creates a buffer where there's emergency access all around it. So we've basically tried with we're meeting all the requirements for life safety in that way. Another consideration is trains are a fact of life. And right now, um, at taxi we have uh, 20 acres down the street mixed use project that's gotten some acclaim and there's 20 or 30 bands of tracks. In some ways we talk about grittiness, but it really it adds to the ambiance. It is something that people are attracted to. It's not as polished as maybe more established parts of town, but there's a certain amount of creative freedom that you get in a neighborhood like this that isn't necessarily possible in other parts of the city. So I think you answered the question by talking about the parking garage being the buffer. So I appreciate that. All my other questions have been asked by previous colleagues, so yield to them. Thank you. Councilman Ortega. Councilman Brooks. Yeah. Thank you, Madam Chair. Yeah, some of the questions were asked around the regional parking. Kyle, I believe I know the answer to this, but I'm going to have you. You're still encouraging multi-modal options on your site, though, correct? Absolutely. We're intending to max out the count for bike parking. We're just a few blocks away from the new Rhino's state, the new station. And right now, that's that includes a bridge connection. That's a connection between the neighborhoods. So the goal is for people to leave their cars behind, whether it's in our parking structure or somewhere else, circulate throughout the neighborhoods, support local business, and hopefully have a great experience along the way. Yeah, you know, this regional park, it is important for folks coming outside the area like these fine folks here and Chris Moore may be coming to enjoy, but we want folks within that vicinity to ride their bike or walk or catch a ride or something. The zip cars and all those. You still have parking for that, right? Smart cars. So yeah, we have some extensive we have dedicated car to go spaces over at the source. Okay, but we'll scale up to address the new development. Great. Okay, Tracy. Just a big, big, hairy question for you. So recently at the state, as quick as last week, the governor signed into law HB 15 1348, which impacts Dora Urban renewal authorities and tax increment financing projects. And it's a it's called a fairness bill. And I'm just wondering, there's a lot of speculations on how this bill may affect projects like these that are coming through. But I'm wondering how this bill you can speculate how this bill might affect this project. I don't believe it will affect this project at all. And I. With one eye watch, said David Broadwell. As I as I'm talking through this the bill it was just signed by the governor and it becomes law effective August 5th of this year. So the action taking taken tonight clearly will be well in advance of that. The other requirements of the bill don't then come into actual effect until projects undertaken on or after January 1st of 2016. So this project being approved now being a really the the final project, final piece of this urban renewal area, we do not see there being any impact of 1348 on this project. Okay. So I'll let it go because we got a long night tonight. Okay. Thank you. Councilman Brooks. Councilwoman Robb, followed by Councilwoman Lehman. Thank you, Madam President. I'm hung up on parking questions as well. Sort of like Councilwoman Shepherd, because we both represent districts where our folks are crying for parking and very disturbed, at least about a perceived, if not real, lack of parking in new projects. So my first question on the parking is the garage parking that's financed a great deal by the tax increment. Will it be free parking or paid parking? Very. Thanks for the question. So the goal with with the parking is, is to really enhance the flow of people. We do have the ability to charge for parking. We have a surface lot now that we don't charge for specifically for that purpose. So really, you know, the intent is to offer the first couple of hours for free and then be able to kind of keep the costs down from there. It will be to an extent, market driven. Um, but we're not the, the parking to a large degree waits down the project economically, which is part of the parking. Always waits down projects, doesn't it? It does, especially in this case, because there there isn't a street grid, there isn't an alley. So there's basically, you know, no outlet really to put it. So it really kind of increases the burden to to do do a little bit more. Okay. So my next question is for Tracy Huggins. So we did something similar at the Loewenstein in the parking garage that was free parking. How do we legitimize using tax increment to build parking that people are paying for or. Are not paying. For. Or are paying for at some level after 2 hours or in the future could be charged. So remember that the primary objective of our involvement is to eliminate the blighting conditions in a way that is consistent with an outcome that the city is looking for. So we take the project as it is presented to us, which in this case is the combination of the hotel, the parking and the the other retail space. And then within that, once we have identified what the financing gap is, we then look for those public purpose costs that we can then reimburse. Parking is clearly one of those because it is a a use that is necessary to support the project by the public to be able to come and enjoy the project. So in saying that we are paying for the parking is true because that is the most obvious public purpose cost in there and it is the cost that is creating the financing gap in this project, just as it was a cost that was creating the financing gap in the loan scheme. Okay. So other developers that aren't getting TIFF are required to build a certain amount of parking. How do we legitimize building twice that amount on the public dollar? So this again goes to the the emerging development along this corridor. And so that was one of the things that was important for us, as well as for the city administration when they were evaluating this project that this was going to be parking in excess of what the project itself required because there is additional development occurring along this corridor and having a reservoir of parking to be able to basically serve those overflow needs. Will there be parking on this street as it's designed? When Brighton is built out. Yes. I'm trying to recall the designs. And it was like it was. I don't. There's limited parking if there is some parking. But I don't think there's much street parking. We know if it will be metered or free. I don't know the answer to that. Okay. And finally, this is a question maybe for Sky Stuart or the administration. I believe that we invested in the in DC see capital improvement projects, $44 million in our 2015 budget summit. There were lots of different uses of that. But how much of that was infrastructure investment in this area? That's a great question. I don't remember the total amount off the top of my head that went specifically to infrastructure. You're right, there were different. Components in there, including some park uses and some. Street uses for Brighton Boulevard. But I can get you that breakdown. And 44 million is about four times our annual discretionary IP, is that correct? That sounds right. And I think it was 47 million. Okay. Thank you. That's one, Rob. I'm done. Oh, thank you, Councilwoman Lehman. Yes. I don't know who to ask this question. For, but you. Said there was a storm water project as part of this because somebody explained that to me. And also talk about the relationship. Between. This project and seeing that the. Light rail that's there is out of the floodplain. Sure. So there's a stormwater outfall that serves the Montclair Basin. It runs through the neighborhood that takes up approximately 30 feet off one side of the site. So there's basically construction on that stormwater pipe that's occurring simultaneously with the project, construction that we've been able to work with public works and come up with a phased approach where it basically works for everybody. So it creates some inefficiencies for land use to have that taking up a significant area. We've been able to work together to come up with a solution and organize the construction so that it's compatible. To what year are you building it to the. 100 year flood. Or the five year flood or what are you. So that the project meets all the requirements for stormwater with both water quality and detention? So I think that's not particularly in a flood zone, but the stormwater pipe in question is really originates in a couple neighborhoods over and then it runs through the neighborhood. So basically serves a neighbor, some neighborhoods more in Montclair, basically further east, it just runs through the neighborhood. So it was in their capital budget. They had a pretty tight schedule to be able to work with RTG on the construction. So we're able to work together to to accommodate that. Okay. I would just like more information about that. Thank you. Thank you. Councilman Ortega. Just a follow up question. Excuse me. On this particular point related to the stormwater, this is a project that came to committee last week, and I'm not making the connection between the project. Is the project being asked to offset any costs towards that? Or help me understand how the Montclair Basin and the Parkville Basin project that we have moving through the city now that moved out of committee last week. For different the different. Interfaces with this project. Councilwoman Ortega, Councilman Brooks wants to take a shot at your. This is this is totally different project. This is a 33/33 Street outfall. What we were talking about in committee was a larger regional Park Hill Basin and Montclair Basin. So. Okay. I'd like to learn a little bit more about the difference between the two, because I know that for the Montclair Basin, we were we're actually moving a major project forward that deals with that in the Parkville Basin. So. Thank you. Any other questions from members of council? Team, then the public hearing is closed. Councilwoman Fox, you rang in where? You just want to comment time. Okay, great. Same with you, Councilwoman Ross. Yes. Brooks okay. Thank you. I'll I'll go ahead and allow for other people to speak before me. This project is in my current district, but let's go ahead and start with Councilwoman Fox. Madam President, I'd be glad to defer to you as the council person. Mayor, so let me come second. Okay. Councilwoman Robb, I agree. Go ahead. And then you can speak after us to. I'm good to Councilman Brooks. You know, I'm not going to help you. All right. Okay. I will speak. So it just seems like yesterday that we were dealing with the major issues on this property when it was loaded with empty truck trailers and crime and illegal dumping and pollution. And I'll even throw some graffiti in there. So I want to say that I'm very excited to see the transformation on this property come so quickly and have a clear and progressive vision. The original project of the source has been an anchor for economic growth along Brighton and it's great. The next level is able to continue in the creation of the hotel market and a production hub that will continue to make River North or Rhino an innovative engine for Denver. I think through the years that I worked here and firmly believe that this project complements the momentum happening in Reno and also the attraction that we will have to the future National Western Center and also the development for this area. So I am 100% supporting this going forward, and I would ask that my colleagues support this effort as well. So. Next one up is councilman fights. Thank you, Madam President. I agree with much of what the proponents have said. This area is blighted. Certainly the Zeppelin and his group do excellent work, supported many of the projects they've had, including the tax increment financing on the first block that's now being absorbed into this. So there's a lot that I like and I have no objection to having a hotel there. But I am not going to be supporting this tonight. First of all, when you consider the financing charges, Tracy, based on what you said, the public will be putting in 17% of the project very close. I take a look and I want you to envision. Two squares. They showed it on the on the screen. But in vision square, a convention square B, square A was the first project. And that was one where I actually did vote for some tax increment financing for and that was the original source. And that's just about to be paid off in 2018. And the usual idea of tax increment financing is that you build a project and then after you have had some of that increment helping to build the project, then that money goes back to the originating tax sources such as the school, such as city funds, mean it's a way to also invest in our future with this project. They want to build a hotel, a private hotel. This is not a public project. This is a privately owned hotel. And they don't have enough money in tax increment, sales tax, the property tax coming off that part of square B where the hotel is going to be built to finish it off in the time frame that they feel is economically viable. So they're going to go back and absorb block A so that the money doesn't come to the tax sources, to the schools, to the city. It's going to be used. Now, in addition to those things that are being generated by BLOCK B, to pay 17% of this private hotel and parking, which I'm now discovering may have some charges connected to it. This, to me is not the role of tax money to to build a private hotel. And so as I look around, I feel this one is off the mark. If they wanted to do it privately, I'd be all in favor of it. But to use tax money in there, I am not convinced it's that blighted, that particular just square of cement. And so I will not be supporting this project. Thank you, Councilman Fox. Councilman Rob. Thank you, Madam President. Pro tem. That was before that. Yeah, I'm struggling with this a little bit tonight. I definitely agree that making Zeppelin Kill Zeppelin are visionary developers without their vision. Literally, the Zeppelin vision, Cherry Creek, the Golden Triangle, and now the Brighton Boulevard Reno area definitely wouldn't be the same. But. And it not but but and we are legitimately putting considerable dollars for infrastructure into this area, as my questions indicated. And it's it's very exciting. But when we add to the infrastructure dollars we're already putting into their tax increment for parking, we are further investing in an infrastructure for the area beyond the project, beyond this project. And Endura projects have a but for argument, but for this money they couldn't happen. And yet we are over parking. The other side of that is, Hey, terrific, it's great when we have a chance and we have the land that we can provide an innovative parking solution. But the consequent is consequent is that areas that need parking and are paying considerable sales tax to the general fund and do not get sales or property tax relief are disproportionately contributing to the infrastructure in this area and in the areas where parking is in such demand. It's because there's not a lot of land up here. At least we have land. So this solution can't innovatively be transferred very easily to other areas. So I am just scratching my head on this one. But if I do vote no as I listen to the rest of the comments, I think you can understand my reservation. Thank you. Thank you. Councilwoman Robb. Councilman Brown. Thank you, Madam President. More than a decade ago, when I was a greenhorn, city council member does take a while to relinquish that title, I guess. Greenhorn. But anyway, I toured Brighton Boulevard, spent about a half a day there and I came away with one simple thought and that was that. This really isn't Brighton Boulevard. It's barbed wire boulevard. So I personally changed the name. And after that tour, if someone would have told me that in the final weeks of my campaign excuse me, of my service on this council, that there would be a hotel proposed for Brighton Boulevard. I would have told them that there were smoking local weed and now you be able to get both from Brighton Boulevard. But I am excited, as you are, about this project and Micky and Kel, especially Micky, thank you for your vision because this place, frankly, when I thought it was an embarrassment and we had the taxis coming down from DIA and that was their entrance to our city and it's changing and it will continue to change. And it's no longer Barbwire Boulevard, it's Brighton Boulevard. And you should be proud of what you've done because we are very grateful. Thank you, Madam President. Thank you. Councilman Brown. Councilman Kennish. Thank you. Madam President, I am supportive of the project that's been described. But I chimed in to, in response to Councilman Rob's question, because one of the things being a long time follower of tax increment financing from long before I was elected, we had an evolution in state law where originally project dollars could only be used on the project site. And, you know, several years back, the legislature changed that and allowed for them to be used for the betterment of the area, including outside the immediate site. So if you were to think I get the question about the additional parking being independent from the project, but in theory nothing would stop us from actually coming forward with a proposal just like we did in the downtown area. TIFF If you remember, you know, thinking about using sources outside the area for this. So if we if we had the hotel as one project, nothing would stop us from having a proposal to use some of that increment for a parking garage should it be needed . So in my mind I, I have a pretty strict view of the, but for analysis as well. And, but what we could do in two swoops we can do and one is, is my view of this so that if we believe that these parking spots are necessary and we do have the opportunity to do them and they are worthy of our investment, it should not matter necessarily that they're being packaged with the 150 that are necessarily required for the hotel. I you know, so there's an efficiency in my mind to doing something together that we could have done separately. And it doesn't necessarily get to the deeper part of your question regarding overall city resources, which is is one that I share, frankly, in terms of, you know, this council for two years advocating for a greater amount of staffing and dollars for infrastructure in areas experiencing change. And, you know, we get some positions and some investment in those areas, but we continue to need to advocate for that in this upcoming budget cycle. So I do believe, however, that we can't miss an opportunity this time limited, right. So that this land will not be available if we don't seize it now, because we can see the pace of change happening in Brighton as well. So it seems prudent to me to, to go forward while we have the opportunity, I would strongly urge just to be charging for the parking because I think that we know if you build it and it's free, then people will come. They won't make the choices that you've described. You've described a process by which you want people to think about taking a bike and think about taking transit. They won't go through that exercise if it's really free and easy. And we should make parking available for those who need it as residents. But for those who have those other options, I do think that it behooves us to think smartly about how we use this resource that we're investing in. But I will be supporting the project tonight as well as, you know, this component of it that's been called into question. So thank you, Madam President. Thank you, Councilwoman Kenney. Councilwoman Ortega. Thank you, Madam President. So this is my old council district and I can remember when many of these warehouses on Brighton Boulevard were used for raves. We often had the police down there. You know, it was not the thriving area that it is today. And there's been a lot of work and a lot of investment in the part of many different individuals and businesses in this in this area. I've been to the source on numerous occasions and both parking lots are always full. So Kyle, when you said basically we have 200 parking spaces there today and and almost all of them were utilized during your busiest times in the evenings, sometimes during lunch hour on weekends. So I think until we have the infrastructure in place, that makes it easier and more convenient for alternative means of transportation, biking to the site . It's not really safe to bike on Brighton Boulevard right now. There are no curbs, no no real bike lanes that are safe. I mean, people are kind of taking their hands and their lives, their lives in their own hands by by trying to ride on this corridor, especially with some of the big truck traffic. And so I think the need for that many parking spaces is warranted, especially given the fact that you're going to add that much more commercial space on the site, you know, the hotel with 100 rooms and an additional element to the project. So it's absolutely going to be needed and. Over time, we will see more and more people biking to the site and using light rail. Once it's open, actually, there will be commuter rail on that stop. Yeah. Um, but I think in general, this is a great project. We knew that when you did the source that this other site, which you all had purchased, was going to be coming next. And we weren't sure exactly what all that was going to entail. But to see a hotel there, I think it will absolutely be utilized. And again, with the proximity to national western and the kinds of changes that were we're seeing come about for that, I just think this is a great project and look forward to, you know, the opportunity to see all the other new things that will be there. So I will be supporting this tonight. Thank you, Councilman Ortega. Councilman Brooks. Thank you. Thank you, Madam Chair. And this is exciting to be able to take take on this district starting on July 20th. And I want to thank you, Madam Chair, for being in the wild, wild west. I think Councilman Brown called it barbed wire street, but this is the wild, wild west out there. And, you know, to have a council person advocating for these kind of projects means a lot and not to the to the folks on the private side. And so I appreciate that. You know, if you have not been on Brighton recently or in the past, I invite you to go and I invite you to go because Brighton is in the middle of a renaissance, an incredible transformation. If it's if it's not smart, it will lose its edginess, it will lose its grittiness, it will lose all that cool factor. But people go there for those specific issues. They like the gritty. They like for whatever reason, no street lights, no curb and gutter, nowhere to park your car. They like that. And that's what makes it cool. And I just want to commend, number one, the Zeppelins for being told what they couldn't do. I didn't ask them this question. But there are folks in the hotel industry who do not believe that a hotel is viable and bright and I'm putting my money on the Zeppelins just because taxi one and two I never thought would make it years ago. On the other side of the river, when. When Brighton wasn't even hot. And so these. These folks really invest and put their money where their mouth is with nothing, no infrastructure at all. In the middle of one of the worst basins in the city today, Montclair and Park Hill basis, but yet they're putting in investment. And so I, I am excited to support this project. And, you know, I believe that. And just shake my head. Shake your head, Tracy, if I'm right or this is all this is our property tax you're using our property tax are using sales tax and property say, okay, so there is a lodgers tax that still will be recouped and is coming to the city. Correct. And so, you know, Councilman Futz is is you know, when we have this conversation, she is always keen on the financials, but I always want her to talk about the other side of the equation, too. And what what else is this property generating for the city? It's not a zero sum. We're just losing money. We're actually gaining tax increment from this area as well. That is going back to the general fund. And I think it's important to realize that. And although it's, you know, it's just 100 rooms, I can guarantee you these rooms are going to be for most of the year. And I think that's important. So, you know, I will be supporting this. This is just we will also be building a bridge to connect with the 38th and Blake Station, which will just be on the back of this building as a city. And so if folks who are coming from DIA do not want to stay at the hotel, that that we're building it right there at DIA or they don't want to come to Union Station now. They have one room hotel and one of the coolest arts arts district in the country. And so I'm excited to support this. And I want to thank Councilwoman Monteiro, I think the Zeppelins. For their courage and for their vision and putting this project together. Thank you. Thank you, Councilman Brooks. Councilman Fats. Thank you, Madam President. I just want to clarify one thing that was said. It is not the intention of the administration and potentially the intention of this council to have the lodgers tax that is being generated or future generated from this project or from any other project to go into the general fund. If there will be an issue going to the people, most likely if this council sends it to the people to use the lodgers tax for the stock show and that area. So it is not something that would be going into the general fund. Oh, yeah. How many books do you want to respond? And we also have a comment from Councilwoman Ortega. You know, me and Councilwoman Fox can be talking all night about this issue, but, you know, they're not 100% of all of the taxes that we are recouping. Is ours going to the stock show? When that goes on, on the ballot. And so we are paying down debt. We are paying down debt for the convention center until 20 2021. Somebody can help me out there, but I just think, you know, it gets real complicated in there, but it's not all going back to the stock show. You are correct that the convention center is included in that, but it's not intended to fund filling potholes. Councilman Fox, Councilman Ortega, did you? Councilman Brooks raised my point. I was just going to ask Andrew Johnson to help us clarify that. But I think Councilman Brooks covered. Are we good? Yeah. Okay. Thank you. Okay, Madam Secretary, roll call on Council Bill 302. BROOKS Hi. BROWN Hi, Fats. No can eat lemon. LOPEZ All right. Nevitt I. Ortega, I. Rob Shepherd, I. Susman Madam President, I. Madam Secretary, closed the voting and announced the results tonight. Two names. Ten eyes, two nays. Council Bill 302 has passed. I also wanted to just give a minute. A request was made by Tracey Huggins from Denver Urban Renewal Authority to just take a second to make a comment. Thank you for this. A formative of personal privilege. And also let's also not forget the companion council bill for the cooperation agreement as well. Why don't why don't I go ahead and do that? Perfect. Thank you. Councilor McKinney, will you please put companion bill three or three on the floor? Thank you. Madam President, I move that council bill 303 be placed upon final consideration and do pass. Thank you. It has been moved and seconded comments by members of council. Councilwoman Fox. The bill that we just passed with the tax increment and this bill are companion bills. So I'll be voting against this one as well. Okay. Thank you. Other comments by members of council CNN. Madam Secretary, roll call on 303. Brooks, I. Brown I thought, how can each. Lehman I. Lopez All right. Nevitt. Ortega Hi, Rob. No. Sheppard, I. SUSMAN Madam President. All right, Madam Secretary, close the voting and announce the results. Ten Eyes. Two nays. Ten Eyes. Two nays. Council Bill three. All three has passed. Okay, now I will invite Tracy Hogan's back up. Thank you, Madam President. As you know, these projects take a long time for us to put together. And this will be the last urban renewal project that we bring before this council. So on behalf of myself, the entire staff of. Dora, our. Board, I want to thank each and every one of you for your careful and thoughtful consideration of each and every one of these projects. Over the years, we have undertaken projects in almost everybody's district. And it is certainly our hope that those projects were beneficial for you and your constituents and wanted to thank you for your service . Thanks. Thank you. Okay. Council Bill 56 approves a zoning map amendment. The Council is required by law to conduct hearings on zoning map amendments and council's actions are subject to court review in order to provide a record for court review. Testimony is recorded and any items presented to the Council are marked as exhibits and become a part of the record. Speakers should begin their remarks by telling the council their names and cities of residents and if they feel comfortable doing so, their home addresses. Councilman McKinney, will you please put Council Bill 56 on the floor? Yes, Madam President. Thank you. I move that council. The statistics be placed upon final consideration and do pass it. Thank you, Councilman Brown. It has been moved and seconded. The public hearing for Council Bill 56 is open. May we have the staff report? Madam President, Members of Council David Jaspers, senior city planner with Community Planning and Development in front of you with rezoning of 195 South Monica Parkway. This is going. The request is to go from ESU d x that's urban edge single unit with a 6000 minimum square foot lot to SMU three. It's in Council District five. In the hilltop neighborhood. And it's at the location intersection of South Monaco Parkway and Cedar Crescent. Our park is directly to the west of this location. The request is to take this property, which is just over 2.3 acres. It is currently a single story. Church property owner Cedar Metropolitan LLC is proposing a rezoning to allow multiple units of residential building on site. As I mentioned, the rezoning was for that ESU, DCS two, SMU three, SMU three is the suburban neighborhood context multi-unit with a three storey maximum height. I'll run through the existing context of the site, including the zoning, historic district and structures, transit service, land use and building performance scale. Here. You can see the zoning on site, as I mentioned. Yes, you do. To the north is a townhouse district that is actually the garages of the townhouses that are still in the are to a to the west of the site to the south is more single unit and there is SMU three along Monaco, um, to the south and of course to the west is OSA, which is the open space of Chris Moore Park itself. Uh, the historic district. The church did receive a certificate of non historic status last year, so it is clear that there is RTD Tram Transit Service nearby. Route 65 runs north south on Monica with 30 minute frequencies for most of the day and Route three runs along Alameda, one block to the south and the east west direction with 50 minute frequencies during peak periods and 30 minutes the rest of the day. Zoom into the site a little bit more and look at the existing land uses. As I mentioned, there is the church there in the site. The only other uses are townhouses on. The only other uses on the block are the townhouses where the park single family neighborhood and to the east is apartments directly to the south side daycare. Visual cues here. What we're looking at here is the site itself of the church. Um, to the east across Monaco is the apartments which are approximately two storey apartments with some taller apartments behind it. Complex to the south, it's the daycare on the top and the closest single family home across the street to the from the site on the south side, there's Chris Moore Park. There's the townhouses that are actually on the block in question. And this is on the northern boundary of the site. You actually see the entrance parking lot to the church. The garages to the top of the townhouse are directly in front of you. And to the right is a maintenance facility for the park. Quickly learn through the process. Planning Board heard this case on January 21st and forwarded it to the Council Subcommittee. Two different meetings there in February and March. Four neighborhoods and plans. The City Council was to hear this as a public hearing back in March. It was continued to the stage. That was partly and due because of the different public outreach that was occurring from the applicant. As you see, there was lots of letters of opposition in support for this case to consider. It's my understanding at the time of the staff report, the applicant was seeking a restrictive land use covenants that would be required on the property that has a limit the density of allowed various different building forms and vehicular access. That is not what you're considering today. You're just looking at a straight zone district and I would ask the applicant to answer questions regarding that potential restrictive land use covenants. But we are looking at is our review criteria.