A bill for an ordinance approving the Emily Griffith Opportunity School Urban Redevelopment Plan and the creation of the Emily Griffith Opportunity School Redevelopment Area and the Emily Griffith Opportunity School Tax Increment Area. Approves the Emily Griffith Opportunity School Urban Redevelopment Plan authorizing the creation of an Urban Redevelopment Area and tax increment areas in Council District 9. The Committee approved filing this bill at its meeting on 7-25-17.
Yep. 12 eyes. Eight or nine has passed. Congratulations. Okay. Councils now convene, reconvene and will resume its regular schedule. Councilman Espinosa, will you please put Councilman 18 on the floor? Sorry. I don't know what this little amendment is. I remember that council bill 810 to be placed upon final consideration do pass. It has been moved in second at great. The public hearing for Council Bill 18 is now open. May we have the staff report? Tracy Huggins. Good evening, Mr. President. Members of City Council. My name is Tracy Huggins. I'm the executive director of the Denver Urban Renewal Authority. Bringing forward for your consideration tonight the creation of an urban redevelopment area of the site previously occupied by the Emily Griffith Opportunity School in downtown Denver. And that is not doing what I want it to do. Yeah. The proposed urban redevelopment area is comprised of approximately 2.4 acres and is located in downtown Denver's cultural core, as defined in the 2007 downtown Denver area plan. The area is generally bounded by Welton Street to the northwest, 13th street to the northeast, Glenarm place to the southeast and 12th street to the southwest. The site is located in Council District nine. The urban redevelopment area was occupied by the Emily Griffith Opportunity School, a Denver public school, for nearly 100 years prior to its closure. The vocational school was named for Emily Griffith, a local teacher who advocated that persons of all ages and races should have the opportunity to learn and better themselves. The school was expanded several times and continued to operate at this location until its programs were to reload. Relocated to 1860 Lincoln Street beginning in 2013. Since relocating, the buildings have remained vacant. In May of 2016, the Emily Griffith Opportunity School was designated historic at the local level and restrictions were placed on the amount and nature of the possible redevelopment. Most of the structures fronting the Welton Street must be retained and setbacks were established for new development to ensure that the appearance and massing of the Welton Street buildings are preserved, any future development on the site will be subject to the design standards and guidelines approved by Denver City Council with the designation and must be approved by the Landmark Preservation Commission. A fundamental consideration in approving an urban redevelopment area is a finding by council that the area is blighted as required by the Colorado Urban Renewal Law. To this end, Durham commissioned Matrix Design Group to conduct a study to determine if the area is blighted. That study, dated July of 2017, has been filed with the city clerk as part of the record of this public hearing. In summary, the Blight study found the following five factors that constitute blighting conditions. Slum deteriorated or deteriorating structures. At the time, the field study was performed in September of 2016. Structures in the area were found to be in fair condition. Most issues found were related to broken windows in the school buildings. These broken windows were fairly widespread, but all had been boarded. Suggesting that ongoing maintenance is still occurring despite the vacancy of the campus. The frequency of broken windows continues to increase and the campus buildings are becoming increasingly dilapidated. An additional area of concern was noted with the concrete window lintels, which were severely crumbled in many locations, creating small piles of rubble on the ground underneath them. While the buildings on the Emily Griffith campus were not found to be in an advanced state of deterioration, it does remain ongoing and the buildings are receiving only stopgap maintenance rather than repairs. This situation leads to a finding of slum deteriorated or deteriorating structures. Predominance of defective or inadequate street layout. There is relatively poor circulation in the vicinity of the area relative to the rest of the central business district and civic center area. The area is immediately adjacent to the Colorado Convention Center, which is a sprawling structure occupying more than six full city blocks. The sheer size of the convention center breaks the continuity of the street grid in the area, with the exception of Stout Street, which passes underneath the convention center but does not serve any of the property in the study area. The Convention Center is one of the largest super blocks in the downtown area, but it is also important to note the presence of the courthouse and the detention center to the south, as well as the Denver Center for Performing Arts and Area Campus in the vicinity to the west. All three properties also break the continuity of the street grid, creating dead ends and a lack of redundancy that felt funnels traffic onto certain streets and creates longer walking distance for pedestrians. Overall, the urban renewal area encompasses an area of downtown that is somewhat isolated and removed from the surrounding area, both physically and psychologically. Pedestrian activity and private investment in this section of downtown is far lower than the rest of the central business district to the northeast. Although none of these isolation issues are expected to be corrected by the urban renewal process. They do represent a challenge to the redevelopment of the area because of the lack of connections to the surrounding street grid and poor provisions for local traffic. A finding of inadequate street layout has been made. Unsanitary or unsafe conditions. Records from the police department show that over the past five years there were 91 reported crimes in the area and in the surrounding rights of way, not including minor traffic incidents. Emergency responses are more frequent still, with one in fact being observed during the field study by our consultant. But it was not recorded as a reported crime of incidents that were recorded. Nine were various forms of assault. Three were street robberies, 23 vehicular hitting runs, and three were business burglaries. The remaining crimes were mostly related to drugs, criminal trespassing and larceny. These crime statistics represent an elevated of both violent and nonviolent crime, given the study area finding of unsanitary or unsafe conditions. Environmental contamination of buildings or property. The condition study notes the former Emily Griffith Griffith facility had an onsite body shop, including paint facilities, which is a use that is commonly associated with environmental contamination. The use of hazardous substances over many years technically represents a recognized environmental condition. In addition, an appraisal commissioned by the city and county of Denver in 2014 noted that, quote, The building contains asbestos and lead based paint, and the cost of remediation and repurposing while retaining the existing structure would be very significant and economically counterproductive. And quote the former presence of the auto body shop and the noted presence of asbestos and lead based paint support. A finding of environmental contamination of buildings or property. The existence of health, safety or welfare factors requiring high levels of municipal services or substantial physical underutilization or vacancy of sites, buildings or other improvements. Elevated crime levels revealed in police records already discussed coincide with high levels of municipal services. Emergency responses from the Denver Police Department are common in the study area. Additionally, relative to the rest of the central business district, the study area is substantially underutilized. The formerly the former Emily Griffith campus is a full city block that lies vacant compared to the rest of the central business district. There is very little history of private investment in the vicinity of the study area. Therefore, there is a finding of the existence of health, safety or welfare factories factors requiring high levels of municipal services or substantial physical underutilization or vacancy of sites, buildings or other improvements in the study area. These blight factors individually and collectively impair or arrest the sound growth of the municipality and constitute an economic and social liability and a menace to the public health, safety, morals or welfare of this area. In bringing forward this urban redevelopment plan, Dürer has sought to align the goals and objectives of the plan with the existing city plans and their approved supplements for the area, including the Denver Comprehensive Plan Plan 2000 Blueprint, Denver and the 27 Downtown Area Plan and reviewing the Urban Redevelopment Plan. City planning staff found that the Urban Redevelopment Plan conforms to Plan 2000 by furthering several citywide objectives, policy and action in the plan, including the conservation of raw materials by promoting efforts to adapt existing buildings for new uses rather than destroying them. Conservation of land by promoting infill development within Denver at sites where service and infrastructure are already in place. Encouraging quality infill development that is consistent with the character of the surrounding neighborhood, that offers opportunities for increased density and more amenities. And that broadens the variety of compatible uses, promotion of standards and incentives for design that enhance the quality and character of the city, including the preservation of significant historic structures and features. Preservation of Denver's architectural and design legacies while allowing new ones to evolve. Leveraging city resources to protect Denver's landmarks and eligible historic buildings. And to avoid their demolition. And ensuring downtown's future as Denver's preeminent center for business, tourism and entertainment, including through continued support of the re-use of historic buildings in and around downtown. Blueprint. DENVER Denver's Integrated Land Use and transportation plan adopted by the City Council in 2002, identifies the urban redevelopment area as being located within within an area of change with the concept land use of downtown. Blueprint Denver recognizes downtown as the centerpiece of the city and region with the highest intensity of uses in Colorado. Blueprint Denver further states that downtown has the most intense land use, development and transportation systems, and the vision is to continue more of the same type of high quality office, hotel, retail, residential and mixed use development. The Urban Redevelopment Plan is consistent with the intent and vision for areas of change and the downtown concept land use. The Downtown Area plan identifies several strategies and objectives to serve as a tool to help community leaders, decision makers and citizens build upon downtown's assets and guide future development. The long term vision seeks to achieve a vibrant, economically healthy, growing and vital downtown through a sustained effort in each of these elements. Prosperous, walkable, diverse. Distinctive and green. The Urban Redevelopment area is located within the cultural core, which is generally defined in the downtown area plan as the area encompassing the convention center. Denver Performing Arts Center, Civic Center Park, Denver Public Library, Denver Art Museum and various municipal and governmental buildings. A key recommendation identified in the plan calls for the creation of a mixed use public private development that includes the Emily Griffith Opportunity School and other complementary uses. Though the Opportunity School moved to another location. The Urban Redevelopment Plan is consistent with the recommendation for mixed use development in this area. The proposed urban redevelopment plan seeks to eliminate blight through the creation of the Emily Griffith Upper Opportunity School Urban Redevelopment Area. Creation of the area authorizes Dora to seek property owner and developer interest in redevelopment projects within the area and provide tax increment financing in support of those efforts. The main goals of the Urban Redevelopment Plan are to eliminate blight, renew and improve the character of the area, encourage commercial, residential and retail development. Encourage and protect existing development more effectively. Use underutilized land. Encourage land use patterns that result in a more environmentally sustainable city. Encourage land use patterns where pedestrians are safe and welcome. Encourage participation of existing property owners in the redevelopment of their property. Encourage high and moderate density development where appropriate. Encourage the re-use of existing buildings, including historic preservation and adaptive reuse. And improve. And provide employment centers near transit. This urban redevelopment plan does not include any approved projects. The entire site was purchased by Stonebridge Companies in May of 2017. Stonebridge, who is a hotel developer, is in the process of working with a variety of stakeholders to determine the optimal development plan for this site. Once this process is complete and to the extent the proposed project is determined to require tax increment assistance, an amendment to this urban redevelopment plan, along with new agreements with the other taxing entities, would be required to add an approved project in order to preserve the opportunity to fully utilized tax increment. The plan approves the use of sales and property tax increment financing. The plan is presented this evening, approves a property tax increment area and sales tax increment that is coterminous with the urban redevelopment area. So it's really important to note that even though we are asking you to approve the plan and approve the use of tax increment , we are not authorized to use any tax increment until such time as we would come forward and ask for an amendment to the plan to add an approved project. We are preserving the opportunity to allow for the tax increment to be an available tool. But again, we are asking you to take this action. Are not authorized to actually spend any of the increment that we may collect. There are a number of other findings required by the Colorado Urban Renewal Law, and those include that the urban redevelopment area described in the plan is found and declared to be a blighted area as defined in the Colorado Urban Renewal Law. And the conditions of blight constitute an economic and social liability and a menace to the public health, safety, morals or welfare. This is a legislative finding by City Council. Based upon the blight study and other evidence that has presented, has been presented to you that the boundaries of the urban redevelopment area have been drawn as narrowly as feasible to accomplish the planning and development objectives of the plan. If any individuals or families are displaced from dwelling units as a result of adoption or implementation of the Emily Griffith Opportunity School Urban Redevelopment Plan. A feasible method exists for the relocation of those individuals or families in accordance with the Act. If business concerns are displaced by the adoption or implementation of the Emily Griffith Opportunity School Urban Redevelopment Plan, a feasible method exists for the relocation of those business current business concerns in accordance with the ACT. This area in does not contain any residents nor businesses. Therefore, they will not be displaced as a result of any project that would be undertaken. Written notice of this public hearing has been provided to all property owners, residents and owners of business concerns. In the resident in the resolution setting this public hearing, city council requested Dura to undertake this task. Written notice was mailed first class mail to all property owners, residents and owners of business concerns in the Emily Griffith Opportunity School Urban Redevelopment area at least 30 days prior to this public hearing. No more than 120 days have passed since the first public hearing before City Council on the plan. Tonight is the first public hearing before Council on this plan. This is the first consideration of an urban redevelopment plan for this site. And this the city council has not previously failed to approve an urban redevelopment plan for this site. Again, this is the first consideration by City Council of an urban redevelopment plan for this site. And as such, the requirement to wait at least 24 months into any prior public hearing is inapplicable. Conformance with the Denver Comprehensive Plan on July July 19, 2017, the Denver Planning Board unanimously found that the Urban Redevelopment Plan conforms with the Denver Comprehensive Plan and applicable supplements. A letter to the effect has been submitted as part of the record of this hearing, and Dura would request that City Council concur with that finding. The Emily Griffith Opportunity School Urban Redevelopment Plan will afford maximum opportunity consistent with the sound needs of Denver as a whole for the rehabilitation or redevelopment of the Emily Emily Griffith Opportunity School Urban Redevelopment Area by Private Enterprise. And again, while we are not requesting approval of a project tonight, the site is owned by a private entity that intends to redevelop the property once a redevelopment project has been determined. The Urban Redevelopment Plan does not consist of an area of open land which is to be developed for residential uses or any any agricultural land. The Urban Renewal Authority has notified the boards of each other taxing entity whose incremental property tax revenue would be allocated under the Urban Redevelopment Plan, and an agreement has been negotiated governing the sharing of incremental property tax revenue. There are two other property taxing districts. Denver Public Schools and Urban Drainage and Flood Control District during has negotiated agreements with both DPS and urban drainage, which allow DAERA to collect any increment in any incremental property taxes generated in the urban redevelopment area, but does not authorize the use of their respective portions of the property tax increment on any future project. Similar to the way that we would work with City Council at such time, if ever as a project is identified. These agreements will be renegotiated to reflect the impact the project may have on the their respective ability to deliver services to the urban redevelopment area. Additionally, if the Urban Redevelopment Plan is not amended to add a project by December 31st of 2020, the agreements terminate and any amount of incremental property taxes collected by DRA would be returned to the original taxing entities. The city and county of Denver can adequately adequately finance and agreements are in place to finance any additional city and county of Denver infrastructure and services required to serve development within the Emily Griffith Opportunity School Urban Redevelopment Area for the period during which the incremental property taxes are paid to the authority. The plan allows for a cooperative agreements between the city and borough to address additional infrastructure requirements should they arise. And finally, it is important to note that no acquisition by eminent domain is authorized by the plan. The slide you've been waiting for. In closing, Dora is very pleased to be working with the city to bring forward this urban redevelopment plan for this very important site. The Emily Griffith Opportunity School Urban Redevelopment Plan captures many citywide goals, objectives and strategies that are found in the Denver Comprehensive Plan 2000 Blueprint, Denver and the Downtown Area Plan. We look forward to working with all parties to bring about the revitalization opportunities outlined in these plans, and I would thank you for your favorable consideration and I will be happy to answer any questions when the time is appropriate. All right. Thank you, Tracy Huggins. Efficient, effective as always. All right. We have no speakers this evening, so I'm going to call you up, Tracy, because we're in the question portion. Once you confer with. Hello. Okay. Yes, sir. Yes. So you made this abundantly clear. But I think it's important for folks who are, you know, at home listening and been following this project that we are simply setting the base for the tax increment financing option, but we are not actually focusing on a project. That is correct. I just want you to and tell folks what setting the base actually means. Sure. So under urban renewal law, we are able to capture the incremental sales and property taxes that a project area generates in order to provide a mechanism for financing a future project. This is a fairly unique circumstance where the property right now is is tax exempt and is is has been has a taxable assessed value of zero because of its previous ownership by Denver Public Schools under the law. There are two times when the assessor looks to determine what the actual taxable value is. One is in late December, the other is August 25th because the purchase transaction occurred in May. By taking action tonight, they at the assessor will look back to the value last certified in December of 2016 and find that the value is zero. If we wait until after August, that sale transaction will be recorded against the property and the property will have lost its tax exempt status. So the value related to the sale will then instead go into the base as opposed to the increment. That's right. All right. Thank you, Joan. Okay. Okay, great. That concludes our questions. Counsel Bill 818 is now closed. Look for comments by members of council. So this is this project is in my district. I have been a part of it from the very beginning, working with stakeholders, working with the Denver Public Schools and historic Denver to ensure that the preservation of this building stays intact. Yet revitalization and opportunities are also a part of it. I am in favor of this because I think this is a good, good move for us as a city, and it allows us to move forward with possible plans of expansion of tourism and our downtown revitalization in this part of the area. So we want to remind council we get another crack at this when a project is actually before us, a project is not before us. Again, we are just setting the base. We are setting the area. So with that, no, no other comments. Madam Secretary, roll call. Clare by Espinosa, i Flynn. I. Gilmore i. Herndon, i. Cashman Can Eat. Lopez All right. New Ortega like I black. Mr. President. I put Kosovo voting in thus results. 13 Eyes. 13 eyes council bill 810 has passed. Thank you, Tracey. Thank you. All right. Moving on to the.