A bill for an ordinance authorizing and approving an amendment to the St. Anthony Urban Redevelopment Plan to add the Sloans Block 3 Project and to Create the Sloans Block 3 Sales Tax Increment Areas. Approves an amendment to the St. Anthony Urban Redevelopment Plan for the Sloans Block 3 Project to authorize the creation of two Sales Tax Increment Areas to provide funding for the preservation and redevelopment of the historic Kuhlman building and auditorium into new affordable housing, retail and restaurant space and townhomes in Council District 1. The Committee approved filing this bill at its meeting on 1-24-17.
Speakers will have 3 minutes unless another speaker has yielded his or her time, which would result in a total of 6 minutes. On the presentation monitor. On the wall you will see your time counting down. Speakers must stay on the topic of the hearing and must director comments to council members please refrain from profane and obscene speech . Direct your comments to council as a whole and and refrain from individual or personal attacks. We really don't like those. Okay, Councilman Espinosa, will you please put Council Bill 55 on the floor? Thank you, Mr. President. I move that council bill 55 be placed upon final consideration and do pass. It has been moved and it the public hearing for counsel, bill 55 is open. May we have the staff report? Tracy Huggins, it's good to see you. Good evening, Mr. President. Members of City Council. My name is Tracy Huggins. I am the executive director of the Denver Urban Renewal Authority here this evening to request of City Council your consideration of an amendment to the St Anthony Urban Redevelopment Plan to add the Sloan's BLOCK three project and to create the Sloan's BLOCK three sales tax increment areas. The scene at the Urban Redevelopment Area was established following City Council approval in July of 2013 and is comprised of approximately 32 acres generally bounded by Stewart Street on the west west Colfax Avenue on the South Perry Street on the East and West 17th Avenue on the North. The majority of the urban redevelopment area was occupied by the Saint Anthony Central Hospital campus prior to its closure. The redevelopment of the former hospital campus is primarily supported by two metropolitan districts, which use additional property taxes levied on the property to finance a variety of infrastructure improvements. Even with the use of metropolitan district financing, there was concern that the key objectives of the redevelopment plans could go unrealized without potential gap financing to support catalytic projects along West 17th Avenue and along West Colfax Avenue. In particular, the Colfax Parcel or BLOCK seven was challenged by difficulty in attracting new neighborhoods, serving retail to a largely blighted stretch of West Colfax and the anticipated extraordinary cost to support structured parking to meet the urban design objectives of Main Street zoning. The potential gap financing for the common parcel or BLOCK three was driven by a desire to preserve a 1939 structure that requires extraordinary abatement and renovation, including a complete replacement and mechanical systems historically served by the main hospital. Central Plan. With those concerns in mind. City Council approved the Urban Redevelopment Plan, which encompasses the nine blocks noted in this diagram. Council also approved the creation of a property tax increment area that is coterminous with the metropolitan district boundaries. Any property tax increment generated within the property tax increment area can only be utilized on approved projects. To date, council has approved two projects within the urban redevelopment area. Thus the BLOCK seven West Project, which will be the future home of the Alamo Drafthouse Theater. Miss Hawkins? Yes. Our, uh, you know, illumination has gone there, so if you could tell us the pages that you're on, that'd be helpful. Do you? The pages of. What? Mr. President, of this. So do you see this on your. On your screen? Some of us do. Does everybody have one? This one's on. The back. One. I will not be offended at all if you choose to turn around and look at your monitors instead of facing me. Okay. I think. I think some of us have enough. Yeah. They're not on there. Yeah, we have. Just like you have the slide slides. So I actually. Maybe I can do this. I believe I am on slide four. Okay, great. Do you want to give me a head? Not if you're. If you're with me on slide four, make sure we're synched up. Is that three or four on an hour's, guys? Four. Okay. So far, so good on slide four. Yeah. Okay. Go ahead. All right. All right. So, to date, council has approved two projects within the urban redevelopment area, the Sloan's BLOCK Seven West Project, which will be the future home of the Alamo Drafthouse Theater and the BLOCK seven East Project, which includes the redevelopment of the existing Raleigh Office Building and the construction of new retail along Colfax. Those projects were approved by City Council in January of 2015. The project, being considered this evening through an amendment to the Urban Redevelopment Plan, is the redevelopment of BLOCK three, which is generally bordered by West 17th Avenue, Perry Street, West 16th Avenue and Quitman Street. This launch block three project site covers an entire block within the urban redevelopment area and includes the existing vacant former nurse's dormitory, the Coleman Building and auditorium building. So I'm now on Slide six. So still with me? Yup. All right. So the BLOCK three project would include the following components. Rehabilitation of the 44,000 square foot historic Coleman building, a former nurse's dormitory into multifamily, affordable housing rehabilitation of the auditorium attached to the Coleman building into a 5000 square foot retail and or restaurant space. Construction of a new 2200 square foot single storey retail building. Construction of approximately 25 new market rate townhomes. Construction of a 4300 square foot public plaza, as well as the installation of streets, utilities and public space within the site, as well as storm drainage facilities for block three and adjacent blocks. So I'll touch on each of those components briefly. As far as the affordable housing, as part of the implementation of the previously negotiated affordable housing plan for the Saint Anthony site, the six story Coleman building will be redeveloped to include 49 affordable units. The building amenities will include an onsite leasing office community room with an entertainment area and kitchenette, as well as a fitness center. The building will have 30 reserved surface parking spaces and an additional 15 reserve parking spaces in the existing parking garage that is located on BLOCK five. This slide and I'm now on slide number eight provides a breakdown of the unit mix in the Coleman building. As you can see, of the 49 total units, three will be studios. 37 will be one bedroom, and the remaining nine units will be two bedroom. This slide also provides the expected expected rents for the various types of units, as well as the current income guidelines for persons at 60% of area median income. Or am I? I will note that this project did receive 4% low income housing tax credits through their application to the Colorado Housing and Finance Authority. So the income will be limited to 60% of AM I. On Slide nine, we show the retail, restaurant and Public Plaza components of the project. As I noted previously, it will include new retail, restaurant and public spaces. The renovated Coleman Auditorium building will include 5000 square feet of retail and or restaurant space. There will also be new construction at the corner of West 17th Avenue and Perry Street to provide an additional 2200 square feet of retail and restaurant space, along with a new 4300 square foot public plaza. These uses will be supported by approximately 32 parking spaces on block three. This project will also include for sale housing by virtue of the sale of approximately 25 for sale market rate townhomes. These townhomes will be three and four stories and will will face West 17th Avenue, Quitman Street and West 16th Avenue. Each townhome will have either one or two garage parking for their homeowners. The Urban Redevelopment Plan authorizes Jerry to finance projects within the urban redevelopment area by use of tax increment financing. The plan amendment will authorize the use of property tax increment financing as well as to add the loans. BLOCK three sales tax increment areas. Doris Gaff has done a thorough underwriting of the project and has reviewed the redevelopment budget and performance submitted by the developer and believes there is a financial gap in the project of approximately $6.5 million. This amount is subject to change based on the final pricing of those 4% low income housing tax credits. This financing gap will be addressed by reimbursing eligible costs through sales and property tax increment generated by the redevelopment of the property that is block three as well as amounts from the broader property tax increment area. Following redevelopment, the site is anticipated to generate approximately $120,000 per year in net property tax increment and approximately $95,000 per year in net sales tax increment. This amount of increment being generated from block three alone would not be sufficient to repay the entire $6.5 million financing gap in the project. Therefore, the incremental tax revenues from block three will be supplemented by taking an amount from the property tax that is generated through the development of blocks one, two and four of about $850,000 per year. And those amounts, again in combination will be used to reimburse the developer for those eligible expenses over a period not to exceed 25 years. In approving the Saint Anthony Urban Redevelopment Plan, City Council found the Urban Redevelopment Plan to be in conformance with the Denver Comprehensive Plan 2000 and its applicable supplements. Accordingly, any amendment to the Urban Redevelopment Plan must be in conformance with the Urban Redevelopment Plan objectives in order to maintain the continuing conformance with comp plan 2000. The general objectives of the Saint Anthony Urban Redevelopment Plan are to reduce or eliminate blighted conditions and to stimulate the continued growth and development of the urban redevelopment area. The proposed project meets the following objectives of the Saint Anthony Urban Redevelopment Plan to eliminate the present and growing factors which contribute to blight in the urban redevelopment area . To renew and improve the character and environment of the area and its surroundings by preventing or ameliorating economic, physical and environmental deterioration. To encourage residential retail and commercial development and redevelopment that is socially and economically inclusive and from which the urban redevelopment area and its environs can draw economic strength to encourage and protect existing development within and immediately adjoining the area by creating conditions from which these areas can draw new economic strength to more effectively use under to more effectively use underdeveloped land within the area to encourage land use patterns within the area where pedestrians are safe and welcome to promote a diverse mix of dense housing options to encourage re-use of existing buildings where appropriate, including adaptive reuse. To promote a diverse, sustainable near neighborhood economy, including mixed use and commercial development opportunities within the urban redevelopment area, and to improve access to healthy transportation options and existing parks. In approving the proposed amendment to the Urban Redevelopment Plan. There are a number of legislative findings that city council must make. Those include the finding that the Sloan's BLOCK three project is located within the Saint Anthony Urban Redevelopment Area and will promote the objectives set forth in the Saint Anthony Urban Redevelopment Plan. Also, finding that a feasible method exists for relocation of displaced individuals and families and business concerns. The project area contains no residences, therefore no individuals or families will be displaced. Additionally, due to the vacancy of the site, no business concerns will be displaced as a result of the project. Asking council to find that 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 Saint Anthony Urban Redevelopment area. That mailing was undertaken on January 13, 2017, which is at least 30 days prior to this public hearing. Council must find that no more than 120 days have passed since the first public hearing before City Council on this plan amendment. Tonight is the first public hearing before Council on this plan amendment. The statute also requires that two years must elapse before council consider an urban redevelopment plan amendment if they previously failed to approve an Urban Redevelopment Plan amendment for this project. This is the first consideration by City Council of this planned amendment for this project. Also, the plan amendment contains no property that was included in a previously submitted plan amendment that was not approved by City Council. As such, the requirement to wait at least 24 months since any prior public hearing is inapplicable. Must find that the plan amendment is in conformance with the Denver Comprehensive Plan. To that end, on January 18th, 2017, the Denver Planning Board, unanimously, with one abstention, found that the proposed amendment to the St Anthony Urban Redevelopment Plan conforms to the Denver Comprehensive Plan and applicable supplements. And a letter to the. To this effect has been submitted as part of the record of this hearing and is requesting that city council concur with the planning boards finding. The St Anthony Urban Redevelopment Plan is amended by the proposed amendment will afford maximum opportunity consistent with the sound needs of Denver as a whole for the rehabilitation or redevelopment of the area by private enterprise. The development team of Trail Brake Partners and Copland Company are the developers and private development entities who intend to undertake the redevelopment project. Council must find that 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 Sloan's BLOCK three project area for the period during which the incremental sales taxes are paid to the authority. The plan allows for cooperative agreements between the city and borough to address additional infrastructure requirements and city services should they arise. The Urban Renewal Authority has notified Council must find that 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 that an agreement has been negotiated governing the sharing of incremental property tax revenue. This amendment to the Saint Anthony Urban Redevelopment Plan invoke certain new statutory requirements. Recall that the original plan was approved in 2013, and now that we are coming forward in 2017, there are provisions of House Bill 15 1348 governing urban renewal activities that now require that City Council before City Council can approve a new urban renewal plan , or in this case, an amendment to an existing plan. You must find that an agreement has been entered into between Doura and the affected taxing districts in regard to the allocation of property tax increment to the project. There are three other property taxing districts. Those being Denver Public Schools. The Urban Drainage and Flood Control District. And the South Sloan's metropolitan districts that I mentioned at the beginning of this presentation. To satisfy these new statutory requirements. Dura has negotiated agreements with these three taxing entities. First, I'll speak to the school funding agreements between Durham and DPS in recognition of the proposed number of residential units expected to be delivered across the entire Saint Anthony Urban redevelopment area, including those blocks which do not have any direct involvement. During negotiating an agreement with Denver Public Schools, which provides that $2.5 million will be paid to DPS over a ten year period to address the impact the Saint Anthony redevelopment will likely have on their ability to provide services to the children in the area. The payment to DPS will be made from incremental property taxes generated from blocks one, two and four and will be paid first before any reimbursement to the BLOCK three project. As the BLOCK three project was part of the original evaluation that DPS made. In looking at the redevelopment of the entire area, they are finding, they being DPS, that there is no additional impact as a result of us bringing forward the BLOCK three project and they have acknowledged the same in an agreement with the Urban Renewal Authority. With urban drainage and flood control. They also were notified of the proposed amendment to the redevelopment plan to add the BLOCK three project. Following that notification, urban drainage evaluated the impact the project would have on their services and determined that the BLOCK three project would have minimal service impacts and have agreed to allow the full available amount of property tax increment generated by their mill levy to be allocated to the project. This again was memorialized in a letter agreement between urban drainage flood control and the Urban Renewal Authority and finally with the loans metropolitan district. At the time, the St Anthony Urban Redevelopment Plan was approved, including the creation of the seven block property tax increment area. Dura and the South Sloan's Lake Metropolitan Districts entered into a cooperation agreement under which Defra agreed to pay over to the Metropolitan District any amount of property tax increment generated by their mill levy. So in closing, Dora is very pleased to be working with the city and the developer to bring forward this project. The redevelopment of this site, the adaptive reuse of an existing historic building, the addition of addition of new retail offerings and a mix of housing options will create a truly mixed use. Mixed income development on this block. This loans block three project advances many of the urban redevelopment plan objectives. And we are asking for your favorable consideration of this amendment and will be I will be happy to answer any questions you may have at the appropriate time. Thank you, Ms.. Huggins. We have two speakers this evening. When I call you names, if you would please come to the front. Cameron. Cameron. Bertrand and Doug. Elements. Cameron. You'll be first, Mr. Burch, on the 3 minutes. Thank you very much. Hi. I am Cameron Bertrand and I live at 1145 Gaylord Street in Denver. I also work for TFG, South Sloan's Lake One LLC, which is the current property owner of the site. So I just wanted to come up and add my support to the passage of adding this project to the urban renewal area, but also as the developer of the St Anthony's site. Just take a moment to say that in some ways this is the culmination of a story that started back in 2013 when the council created the urban renewal area. And I think this is just the kind of project that we hoped would come forward. Historic preservation, environmental remediation, affordable housing, open space. It's a great outcome if you haven't been out to the site in a while. It's changed a lot. There are people living there and people shopping there and people eating there. And I think the variety of housing and neighborhood services that we wanted to see come about through the redevelopment of St Anthony's is really happening. And so in closing, I guess I would just thank everybody on City Council, your staff and in particularly the city and county of Denver staff, especially the public works and in this case also community planning and development. A project like this doesn't often go off this well this fast. And really three and a half short years, the place has really transformed. And I credit that to the partnership with the city. Finally, I would just like to say thanks to Trail, Brake and Coble, it's always great to work on Denver projects with Denver developers and the Denver Urban Renewal Authority for all their work not only on this project but throughout the city. Anthony site. Thanks. Thanks so much. Available for questions if needed. Thank you, Mr. Bertram. Doug Alliance. Hi. Good evening. My name is Douglas Honowitz and I live at 99, 63 East 29th Avenue in Denver. And I'm here on behalf of Trailer Park Partners and Cable Joint Venture Partnership, known as Sloan's BLOCK three LLC. Catchy name that is the applicant and redevelop her for the purposes of the discussion here this evening in Sloan's BLOCK three project. I echo what what Cameron was saying there this is tonight is really a culmination of years of work from a lot of people, both in the public and in the private sector, really trying to bring forward a terrific vision. And I appreciate council's consideration of the matter. The project that has been designed and that's being presented tonight is, is is really thoughtfully put together to try to realize some of the items that were contained in the general development plan for the St Anthony's area, in total from the urban redevelopment plan that was put in place back in 2013. And from our understanding of conversations over the years with the community members that were there historically and that have subsequently moved into the area, the vision really is to deliver upon a mixed use, mixed income project that serves the housing needs and the the services for this neighborhood in total from the work of the Borough Community Groups, City Council and OED Jafa, who has been actively involved in it and others tonight we can realize that vision. Restoring an old building and putting it back into use. That's a connection to the past and very important past of St Anthony's here. This is one of those key pieces of the project, the hospital in total that's being saved and reused to continue to serve the community of Denver to mixed housing options for sale for and for rent and restaurant and other other services to the area. We just really think it's going to be a catalytic project that is respectful to the neighborhood boundaries, strengthens the relationship with the park. And we just we're excited to be bringing it forward and very much appreciate your consideration of it tonight and look forward to your support of this measure. Thank you very much. And likewise, I'm happy to answer any questions. Thank you, Mr. Leno. It's all right. This concludes our speakers. Now, are there questions for members of council? All right. Public hearing from counsel Bill 55 is now closed. Comments from his counsel, Councilman Espinosa. Yeah, I just I'm glad that Cameron is here. Doug here with Tracy. I want to thank you, Cameron. I know early in my time in office, we had talks about the balance of this property and what it would be. And there was a question about the life of the Coleman building and what was going to be viable there. And we knew that we needed partnerships. And you established how that could be, but we still needed to find a developer willing to follow through. And when I met Doug and he came forward with this concept for affordable housing, it sort of filled a big it was it was filled a big void that was very much in need. And so I really I want to thank you for for bringing this forward being and everybody, Doug in our dialog and Tracy for helping see this through because we had good public meetings, we got good output and I mean good input and we're at a place on this development which is which is well, I'm heartened by this phase three. I'm not going to lie. I wish I wish it wasn't going to beat out the, you know, two blocks that are still sitting there vacant. And I wish we could have sort of built that sort of collaboration and seen those things through, particularly in BLOCK Two, because I thought we we had a good dialog leading up to that. But anyway, I do I probably shouldn't have mentioned that, but I do I do think that there is a nexus for the future and the vision you guys had put forward. And it is missing those two pieces. And I look forward to someday moving forward on that. But in the meantime, I think this is a great proposal and I think the city and the team for persevering and making it happen. So to Doug, Tracy and Cameron, thank you very much. Looking forward to supporting this. Thank you, Councilman Espinosa. Councilwoman Ortega. Thank you, Mr. President. I just want to go back to when these two gentlemen started this project with a lot of community meetings with the Sloan's Lake neighborhood. I attended a number of those at the old St Anthony's Hospital when the building was still there. And to see the progress that's been made in this short time frame and the fact that you're here tonight and there aren't any residents from the community, you know, testifying, says a lot about the important work that you have done with the Sloan's Lake neighborhood over these years. So first, I want to say congratulations and I'm happy to support these bills tonight. Thank you. Thank you. Councilman Ortega. Councilman Cashman. Thank you, Mr. President. Affordable housing, affordable housing, affordable housing. Thank you for what you're doing. Thank you, Councilman. Councilman Castro and Councilman Lopez. Thank you, Mr. President. I also wanted to extend my support for these for this bill. You know, it's been a long time coming. And, you know, I grew up just south of the hospital. My sister was born at the hospital. Broken nose at the hospital, not at the hospital, but, you know, ended up there. They didn't do a good job, obviously. But I'm pleased to see it develop. I, you know, had a meeting, a good meeting with Dora and Rose Cameron with the development side to really talk about the affordable housing and, you know, the effort that was made there. But the need in the future to really think about when we look at affordable housing and look at units that they are not just one bedrooms, that they are two, two and three bedrooms, because that's when we talk about families. Right. We can call one bedrooms, affordable housing anywhere in the city. But when you really look at the need that's out, there's two bedrooms. So when we look at developments, we look at it from look at it with opportunity to create those two bedrooms. So here's the here's the deal on West Colfax. We've seen such a lack of of development and such. And it's been really hard and a lot of hard work with the West. Colfax did kind of pushing that forward. And I think it's about time. It just saddens me that we can't do more. The retail side of this site to really bring that out. You know, I think Councilman Herndon, this is something that you and I have both talked about in the past. But when we look at the edges of this city, we have we are competing with our regional neighbors. They're building Belmar. We're building residential. So it's a it's important for us to be able to keep those Denver dollars and the Denver tax base in Denver and to really support those projects that do that and add a good quality of residential to the neighborhood. So here's to it moving forward. Thank you. Thank you. Councilman Lopez, it has been moves in Sacramento. Secretary Roll Call. Espinosa. Flynn. I. Gilmore. I. Herndon. I. Cashman. I can eat. Lopez. I knew Ortega. Sussman Black. All right. Clark. All right, Mr. President. I police close voting announce the results. 3939 Council Bill 55 has passed. Congratulations. All right, but we are not done. Councilman Espinosa, will you please put Council Bill 57 on the floor? Yes, Mr. President. I move that. Oh, God, I got it.