A bill for an Ordinance authorizing and approving an amendment to the Welton Corridor Urban Redevelopment Plan to add the 2460 Welton Street Project and to Create the 2460 Welton Street Property Tax Increment Area (FINANCE & SERVICES) Approves an amendment to the Welton Corridor Urban Redevelopment Plan for the 2460 Welton Street Project in Council District 8. The Committee approved filing this bill at its meeting on 12-16-14.
are going to be on 1102. And this also for council we have a companion bill correction 1101 in council members 1102 is a companion bill that we will also vote on after the public hearing. Councilwoman Ortega, will you please put Council Bill 1101 on the floor? Absolutely, Mr. President. I move that council bill 1101 be placed on final consideration and do pass. Thank you. Councilman Ortega has been moved and second in a public hearing for council bill. Um, no one is open. May we have the staff report? Good evening, Mr. President, members of city council. We are here tonight to talk about a proposed amendment to the existing Walton Corridor Urban Redevelopment Plan to add the 2460 Welton Street Redevelopment Project. The Walton Corridor Urban Redevelopment Plan was approved by City Council in September of 2012. In doing so, council found the Walton Corridor Urban Redevelopment Plan to be in conformance with the Denver Comprehensive Plan 2000 and its applicable supplements. While the Urban Redevelopment Plan authorizes the use of tax increment financing, TIFF cannot be used until it is specifically approved for a project. Therefore, the Denver Urban Renewal Authority is here this evening requesting City Council's consideration of an amendment to the well-known Corridor Urban Redevelopment Plan plan to add the 2460 Walton Street Project and create the 2460 Welton Street property tax increment area. The Walton Corridor. Urban redevelopment area, as I mentioned, was established in 2012 to encourage redevelopment along the Welton Corridor. The urban redevelopment area is comprised of approximately 29 blocks, generally and approximately bounded by Broadway Street on the West Glenarm Place and 24th Avenue on the South Downing Street on the east and on the north by either California street or the alley between Welton and California streets. At the time, the Urban Redevelopment Plan was originally approved. No projects were identified. However, the plan allowed for future projects to request TIFF assistance and contemplated tax increment areas would be approved as projects were brought forward within the area. To date, one project has been approved. The Affordable Housing Development Project at 23 Welton. The project, being considered through an amendment to the Urban Redevelopment Plan this evening is the redevelopment of the site located at 2460 Welton Street. The project site is located at the southern corner of Welton Street and 25th Street. The project is comprised of three discrete buildings, built a above below grade structured parking. A five story stick on podium building at the corner of 25th and Welton will include 82 apartment units, 18 of which of which will be rent restricted to 80% of the area, median income or AMI and 3500 square feet of ground floor commercial space adjacent to the building facing Welton Street to the corner of 25th Avenue are nine townhomes, and additional five townhomes will be built facing the adjacent property to the southwest. The project would include ten ground floor parking spaces and 84 below grade parking spaces. In addition to the 14 parking spaces each under each of the townhomes. The apartment units range in size from 550 553 square feet, four studios to 938 square feet for the two bedrooms. The unit mix is noted on this slide here with which you can see that there are four studio units, if you will, with a zero separate bedroom and one bathroom, 53 one bedroom, one bath and seven two bedroom, two bath. Those are the market rate units. On the affordable units, there are 17 one bedroom, one baths and one two bedroom, two bath unit. The Urban Redevelopment Plan authorizes dirt to finance projects within the urban redevelopment area by the use of tax increment financing. The plan amendment will add the 2460 Welton Street Property Tax Increment area. Dura staff has reviewed the budgets and pro forma submitted by the developer and believes there is a financial gap in the project of $1,350,000. This financing gap would be addressed through the property tax increment generated by the redevelopment of the property. The site is currently owned by the developer who is paying approximately $15,000 per year in property taxes. This amount will constitute the base taxes from which property tax increment will be calculated. The estimated taxable value following redevelopment is anticipated to generate approximately $130,000 per year in net property tax increment. Again, these incremental property tax revenues will be used to reimburse the developer for eligible expenses of $1,350,000 over 25 years. As I noted previously, City Council found the Urban Redevelopment Plan to be in conformance with the Denver Plan 2000 and its applicable supplements. Accordingly, any amendment to the Urban Redevelopment Plan must be in conformance with the Urban Redevelopment Plan objectives to maintain the continuing conformance with the comp plan 2000. The general objectives of the Walton Court or Urban Redevelopment Plan are to reduce or eliminate blighted conditions and to stimulate the continued growth and development of the area. The proposed project meets the following objectives of the Walton Corridor Urban Redevelopment Plan 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 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 more effectively use underdeveloped land within the urban redevelopment area to encourage land use patterns within the urban redevelopment area and its environs, which will reduce dependance upon private automobiles for transportation, to encourage land use patterns within the area and its environs that result in a more environmentally sustainable city to encourage land use patterns within the area where pedestrians are safe and welcome to encourage the participation of existing property owners within the area in the redevelopment of their property. Encourage high and moderate density development where appropriate, including structured parking promoted to a diverse mix of dense housing options. Promote a diverse, sustainable neighborhood economy, including mixed use and commercial development opportunities along the urban redevelopment area. There are a number of findings that are required by Colorado Urban Renewal Law in requesting the plan amendment. The first of those is that the 2460 Welton Street Project is located within the 29 BLOCK Welton Corridor Urban Redevelopment Area, and it will promote the objectives set forth in the Welton Corridor Urban Redevelopment Plan 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 by the project. 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 to undertake this task. Written notice was mailed first class mail to all known property owners, residents and owners of business concerns in the Welton Corridor, Urban Redevelopment Area on December 5th, 2014, which is at least 30 days prior to this public hearing. The statute requires that no more than 120 days have passed since the first public hearing before City Council on the Plan Amendment. Tonight is the first public hearing before Council on this Urban Redevelopment Plan Amendment. The statute also requires that two years must elapse before council can 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 an Urban Redevelopment Plan amendment for this project. Also, the plan amendment contains no property that was included in a previously submitted urban redevelopment 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. Conformance with the Denver Comprehensive Plan. On December 3rd, 2014, the Denver Planning Board unanimously found that the proposed amendment to the Welton Corridor Urban Redevelopment Plan conforms to the Denver Comprehensive Plan and applicable supplements. A letter to this effect has been submitted as part of the record of this hearing. Endura is requesting that the City Council concur with this finding. The Walton Corridor Urban Redevelopment Plan, as 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 Welton Corridor. Urban Redevelopment Area by Private Enterprise 2460 Walton Street, LLC, an affiliate of Palisade Partners, is the property owner and a private development entity who intends to undertake the redevelopment project. This plan amendment to the Walton Corridor, Urban Redevelopment Plan contains provisions for property tax increment financing. Accordingly, Denver Public Schools District One has been permitted to participate in an advisory capacity with respect to the inclusion in the plan of the tax allocation provisions authorized by Section 31, Dash 25, dash 107 and nine of the Colorado Urban Renewal Law. Finally, the city and county of Denver can 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 2460 Welton Street Urban Redevelopment Project area for the period during which the incremental property taxes are paid to the authority. The plan allows for cooperative agreements between the city and Darra to address additional infrastructure requirements and city services should they arise arise. In closing, jurors very pleased to be working with the city and county of Denver and the developer to bring this project forward. The redevelopment of the site and the delivery of 96 housing units with the combination of for sale, for rent and affordable units near downtown and along an existing transit corridor captures many citywide goals, objectives and strategies that are found in the Denver Comprehensive Plan. The Northeast Downtown Neighborhoods Plan and the Walton Corridor Urban Redevelopment Plan. The 2460 Walton Project advances many of the plan objectives which are intended to revitalize this important corridor. We asked for your favorable consideration of this amendment, and I will be happy to answer any questions when the time is appropriate. Thank you, Tracy. We have two speakers lined up and you can both come to the front pew. Tracy Winchester and Mr. Sekou. Thank you very much. My name is Tracy Winchester. I live at 217 South Jackson Street, Denver, Colorado. I am the executive director of the Five Points Business District. I have been the executive director since 2011, which means I have been very much involved in what has been going on in the revitalization of the well two street corridor . I worked closely with Tracy Huggins, Endura, to come up with the study to determine whether or not we had a blighted area and therefore qualified as an urban renewal area. One of the plans that Tracy did not talk about, because there was a study that was done in 2013 that specifically talked about what would it take for the revitalization of the Welton Street corridor? I quote, target 4 to 500 new residential units, including mixed income, rental and townhomes in non-core areas, and a prioritized commercial uses for a mixed use district. This is one of the very targeted goals that we have for the Welton Street corridor. And so we are very much in support of 2460 here today because this project exemplifies what we need, what we want, the vision for this community on the Welton Street corridor. I also would like to encourage that all of the members, please look at what this is happening here today, that we're far ahead of schedule. We are really ahead of schedule because of what your efforts have been with regards to housing and revitalization in the city of Denver. And we are part of your plan, and so we therefore encourage you to approve this project today. Thank you so much for your time. Thank you, Miss Winchester. Mr. Sekou. My name is Jeremy Sekou. Advocacy group, Black Star Action Movement. Self-defense. Representing poor, working poor and homeless people. We stand categorically opposed to this project. It smacks of race and class discrimination. And as a further continuation of the gentrification of the five. Fabulous. We talk about affordable housing units. I'm on Section eight today and with my voucher I can't afford to live in the neighborhood that I was born and raised in for 62 years. 62 years and now I can't live in the neighborhood I grew up in because the cost of the rent is beyond my budget. And that just doesn't impact me. That impacts all folks in my neighborhood was born and raised there, and now we're scattered all over the city, living in Wheat Ridge, Littleton, Aurora, and a neighborhood that was 90% African-American is now down to less than 20%. These are the intended, quote unquote, consequences of your actions over a period of time over the last 15 years. Now. I don't know about you guys, but imagine if you were in my shoes and this was happening in your neighborhood and you were going around sites such as this where you have no black folks working there in the construction. No black folks internal in the upper management of this development company. And now we have a miniature version of South African. So who is this really for? As if we don't pay taxes. And then you use federal funds to do this with. And then you're going to have a unanimous vote here tonight in support of the project. Because the horse is out the barn now. So we go through this dog and pony show. To make it look as if. There's some fairness and justice in this. And then right around the corner, we got Martin Luther King's birthday. We're getting ready to celebrate. And I watch all the y'all sit there and participate in his legacy as he flip flops in his great. It's a shame. And it's okay because this is all short lived. Because as the next mayor of the city and county of Denver. Mr. SACA. Mr. SACA, Mr. Sector Union. Thank you, Mr. SACA. All right, that concludes our speakers. Any questions from members of council? Catwoman Ortega I have one question for Tracy, if you wouldn't mind coming to the microphone. So as a city, we traditionally use the TIFF tool tax increment financing for commercial projects more so than residential. So can you give us some examples of other residential projects that we have used TIFF for? Certainly we have a a rather, rather lengthy list, including the existing project that is along the Welton Corridor, the 2300 Welton, which is 100% affordable residential in downtown. We have a number of specific tax increment supported projects that include ground floor retail, but the upper floors, many of the historic buildings that were repurposed include affordable housing. So the Denver Dry Goods buildings, the buildings that are part of the Mercantile Square Project, Boston Lofts Guaranty Bank Building. So again, a number of projects downtown have had a mixture of residential as well as commercial projects such as City Park South was primarily residential, St Luke's primarily residential. So it's not unusual for us to use tax increment financing to support residential projects. So I don't remember if I heard you say that this does include any commercial component. So this is consistent with what we've done. Yes. In other areas that has the ground floor with commercial in the housing. Yes, there's about 3500 square feet of planned commercial space in this project. Okay. Thank you. I'd like to make a comment, but I'll wait till the comment period. Yes. If I. Katzenberg seven questions. Yeah. Thank you. Mr. President, we call upon the earth, the development crew, the developer here. And and, Paul, can you talk a little bit about the commercial, the retail aspect that you guys are thinking about for this site? And then, as most of you all know, this Five Points is a historical kind of community. And we really asked folks who are coming in and in a part of the development to to really reach back and think about us. I want you to kind of talk about the naming of this this building in this development and and how that's a part of the history. Well, thank you, Mr.. Councilman Brooks, President and members of City Council. We're excited about the retail presence in this project. And then in addition to that, we are in the process of working on a few other projects in the neighborhood that we hope to provide even additional retail. And so I only mention that because we kind of look at this as. Kind of we want to look at. All the needs and services that would be attractive to the neighborhood. And. And make sure that they all fit and they all. Function properly. And so we're in the process right now. Of moving forward with the retail space and kind of. And we've always made a promise to the citizens of the neighborhood that we really want this amenity to them, that we want this to serve them and be something of their interest. We even plan to do. A process. Where we can collect ideas and collect some of their thoughts and needs. So as of today, we don't have any specific tenant suggested, but we do foresee. There to be you know, it could be one large retail space, but more than likely two. Spaces. So we're excited for that. And then in regard to the naming, we. Kind of found a gem that you don't always find when you're, you know, doing development. And we started looking into the. Site and we we discovered that there. Was formerly on. This site, which is currently. Dirt. A Phillis Wheatley YWCA on the site. And for those who don't know, Phillis Wheatley. Was the first African-American female and she. Was actually a slave and eventually emancipated and eventually emancipated. And she wrote short writing poetry. And she actually. Was it took the court. Because they thought there was no way that was possible for an African-American female at the time. And she was found innocent, obviously. And those of like George Washington have praised her poetry and such. And so we're really looking forward to really representing her. And what she's. About with this project. And also, that's the namesake for the project. Thank you. Thank Catherine Brooks. Any questions for 1101? C nine public hearing is now closed on for comments. Councilman Brooks. Yeah, thank you, Mr. President. And, you know, I think for city council to two plus years ago, we were here going over this urban renewal area, attempting to try and get a new kind of vision for what the historic Five Points in Welton was to become. And it's really exciting to see. This is the third project actually. You'll see two today and 23. Welton came by about four or five months ago, which was 225 affordable units. And I'm glad someone talked about Section eight housing vouchers because 2300 Welton, which would be the new development just breaking ground except Section eight vouchers. So we're really excited about this. And I think Tracy really underscored the important point. A mix of housing is what we're really looking for on Welton. You can't find the type of mix of housing anywhere in the city like you can in Welton, and 30% of all of our rental units, all of them are affordable in Section eight. And so this 80% am-I level, which many of you are trying to do your calculations at home, is between the 40 and $60,000 range a year, depending on the number of people you have in your household, is a missing component in this neighborhood. There are actually a ton of units available. Very low vacant vacancy, understandably, for the 30 to 60% am-I. But we need we need more. And that's been addressed. But, you know, the last development, major development on Welton was the Point Project in 2001. And that's where Coffee at the Point is right now. And to see 14 years later, we finally are getting a development off the ground is really exciting. And to know that it meets some of the needs of the neighborhood is really exciting. Paul Bucks You don't need to do any outreach to the community. I can tell you what they want right now. And it's a fresh food grocer as a retail spot in your building. So they told me to tell you that. But you know, we're really excited about this development. The community engagement process on this was lengthy. This is within the historical landmark district. So this this this developer went through an entire process with both Curtis Park Five Points Community and San Rafael to make sure that this was the right type of building, the historic nature of it , and making sure that it met the needs of many folks in the community. So we're really excited. This is just the beginning now. This is just the second project. You will see Tracy Huggins up here many more times because the market is here and now we have some cool redevelopment ideas in the future. So I hope that you all will be voting for this as this fits the guidelines of many of the plans laid out in front of city council in the city. Thank you. Thank you, Councilman Brooks. Councilwoman Ortega. Thank you, Mr. President. I just wanted to express my support for this project as well. We have seen lots of different projects on the one street corridor coming forward, and we're seeing some transformation of that part of downtown. And you know that the downtown Denver Partnership has been working to expand, you know, the what we've known as the Silver Triangle in that area of the city for quite some time. The need for affordable housing is important. And although some might think that 80% is not low enough, as Councilman Brooks said, having a mix of income levels becomes really important. I know over a course of time we've seen some changes with some of the housing that existed in this area. But the kind of changes that are occurring that bring some of the retail to the community is also important because I know in in this area, some of those services have not been available for for a long time. And so some of these projects are bringing those services to the community while at the same time, by creating the opportunity for Section eight units within some of these different buildings, it's still keeping many of the same people in the community and bringing in other people that will help support part of that retail that is being brought forward. So Tracy, to you and your board and the team of people who have worked with you both, Tracey's actually, I want to commend you both on your efforts. And obviously, Councilman Brooks, your leadership in working with the community is is important. So I'm happy to support this moving forward. Thank you, Councilwoman Ortega. Councilwoman, can each. Thank you. Mr. President, my comments were very similar to Councilwoman Ortega's. To compare and contrast earlier, we had called out a bill for a large site with a single master developer and being able to kind of have a mix of affordability in an area where you have one person kind of doing some of the planning is one thing. But to try to have the mix of projects in an area like Welton where you have separate owners, really does rely on the leadership. And I just you know, that leadership Councilman Ortega named him. You know, it's Councilman Brooks. It's it's Tracy Huggins with Dora and Tracy with the Five Points Business District that you wouldn't think necessarily would have a mission to be looking out for this housing mix. But you have been at every affordable housing discussion that I've held and many others, making sure that the business district has a voice in that diversity of housing . And so just kudos on that. And the one other thing I wanted to add for those who may be concerned about this level of affordability not being deep enough, the thing that's really important about the this level of affordability isn't so much necessarily that it's deeply affordable, but it's that the folks who live in are guaranteed against rent increases outside their income range. It's not impossible, perhaps, to find market rate units at some of these prices, but what will happen over time is prices will go up and those folks who are there will end up moving. We've seen that, you know, time and time again where people have to move every six months or a year because of price increases. So the important thing and the thing that I appreciate is that even though this isn't the deepest level of affordability, it will be guaranteed. So the people who live there can count on it. And that's really a valuable asset for our community, along with the kind of housing we built at 2300. Welcome. So thank you for the thoughtfulness that you all put in together in structuring this, and I'm happy to support it this evening. Thank you, Councilwoman Kathryn Brooks. Nothing, you know, and I just got to throw some support into the Office of Economic Development is never get the credit. But they these guys invested in this project so that we could keep these affordable units affordable and so that we could make this project pencil out. So thank you guys so much for your vision around the city, your device around the city. And it's it's it's very much appreciated. So obviously economic development. Paul Washington and crew. Thank you. Thank you, Councilman Brooks. All right. Any comments on 1101? And then we'll be voting on this companion bill 1102 right after Madam Secretary. Oracle Brooks. Yeah, but. But she is sorry. Watching the game. Can each have. Can each layman i Lopez Monteiro Nevett I Ortega, i rob Shepherd. I Mr. President. I Madam Secretary, please go to the voting. Announce the results. Tonight. Ten eyes 11. No one has been placed more on fine consideration and does pass. Councilwoman Ortega, will you please put 1102 on the floor for final consideration and do pass? Absolutely, Mr. President, I move that council will love no to be placed on final consideration and do pass. We're going to wait for technology to catch up on our screens. And while that's come in, Councilman Brooks. I interrupt for a second is 11 minute 1103. No. 1102 It's a companion bill to 1101 we're. I'm sorry, where is it listed. With on Bill's for final consideration. And it's not under the public. Oh, I see. Okay. Thank you. All right, we'll move. We need a second on the screen. Got the second. Any comments, Councilman Brooks, did you have an additional comment? Vote for this too, please. Thank you. See no other comments, Madam Secretary, roll call works. I. Can each Lehmann high. Lopez. Montero. Nevitt. Ortega. I. Rob Shepherd. Hi, Mr. President. Hi. Secretary, please close the Vali Nasr results tonight. Tonight's 1102 has placed the have been placed on final consideration and does pass. Okay. Our second public hearing is going to be on 1103. But just to let councilmembers know after that, we will be voting on 1104, which is a companion bill to that one. Councilman Ortega, will you please put 1103 on the floor for final consideration and do pass?