Speaker 2: Moved and seconded public hearing 322 is now open. And may we have the staff report.
Speaker 4: Good evening, Mr. President.
Speaker 11: Members of City Council. My name is Tracy Huggins. I'm the executive director of the Denver Urban Renewal Authority. Get comfortable. I only have about 45 pages of text that I need to.
Speaker 6: Just kidding to go through. But there are a number.
Speaker 11: Of things that we do need to cover to make sure that this amendment is undertaken consistent with the urban renewal statute. So we are here this evening to ask your consideration of an amendment to the Walton Corridor Urban Redevelopment Plan to add the 2560 Welton Street Project and to create the 2560.
Speaker 4: Welton.
Speaker 11: Street property tax and sales tax increment areas. The Walton Corridor Urban Redevelopment Plan was approved by City Council in September of 2012. In doing so, council.
Speaker 6: Found the Walton Corridor.
Speaker 11: Urban Redevelopment Plan to be in conformance with the Denver Comprehensive Plan 2000 and is 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, again, we are here this evening requesting your consideration of an amendment to the Walton Corridor Urban Redevelopment Plan to add the 2560 Walton Walton Street Project. Create the 2560 Walton Street Property Tax Increment Increment Area and Sales Tax Increment Area, as well as to amend certain definitions in particular the definition of property tax increment to conform with statutory changes due to the passage of House Bill 15 1348. In addition to the Urban Redevelopment Plan Amendment, there are those three companion ordinances that will be considered following council action on the plan amendment. These include Council Bill 323 to approve the 2560 Walton Street Sales Tax Increment and Property Tax Increment Cooperation Agreement Council Bill 324 to approve the Intergovernmental Agreement among the City, Denver Public Schools and Borough and Council Bill 325 to approve the letter agreement among the city, urban drainage and flood control and dra. And each of these bills will be discussed later in my presentation. The Walton Corridor Urban Redevelopment Area, again, was established in 2012 for the purpose of encouraging redevelopment.
Speaker 6: Along the Welton Corridor.
Speaker 11: The urban redevelopment area is comprised of approximately 29 blocks, generally in approximately Brown 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 plan was originally approved, no projects were identified. However, the plan allowed for future projects to request tax increment assistance and contemplated tax increment areas that would be approved as projects were brought forward within the urban redevelopment area. To date, three projects have been approved. An affordable.
Speaker 4: Housing.
Speaker 11: Development project at 2300 Welton. A mixed use project I'm sorry, a mixed income residential project at 2460. Welton and a mixed use project at 28 a well 2801 Welton. The project being considered through the amendment this evening is the redevelopment of the site located at 2560 Welton Street. The project site is located at the southern corner of Welton Street and 25th Street. And the site is currently vacant and owned by the developer, a joint venture between Palisade Partners and Confluence companies. And as you can see on this slide, the site is located at the light rail stop at 25th and Welton. The project is comprised of an eight story steel and concrete building to include 129 apartment units.
Speaker 4: With 22.
Speaker 11: Units restricted to 80% of the area. Median income or AMI will also include approximately 10,000 square feet of ground floor retail and approximately 15,000 square feet of second floor office space. The project will also include 185 parking stalls within a structured parking garage. 27 of these parking spaces will be accessed from the alley, while the remaining 158 spaces will be accessed from 26th Street. The site is zoned CMC's eight Urban Center Mixed Use Up to eight.
Speaker 4: Stories is.
Speaker 11: Located in the Five Points Historic Cultural District and is immediately adjacent to the 2015 Wilton Light Rail stop after planning and neighborhood outreach efforts, including consultation with the Landmark Preservation Commission. There was general support for the proposed height of the building and the total cost of this project is expected to be just over $40 million. The apartments. Premier units range in size from 606 square feet, four studios to 1563 square feet for three bedrooms. The unit mix includes 12 studios, 94 one bedroom units, 19 two bedroom units and four three bedroom units. Market rate rents are expected to range from $1,250 per month to 2006 $2,630, depending on this on the unit size . 22 units, four studios, 16 one bedroom and two two.
Speaker 4: Bedrooms.
Speaker 11: Will be affordable at 80% AMI. And this.
Speaker 6: Affordability requirement.
Speaker 11: Will be in effect for not less than 25 years. The Urban Redevelopment Plan authorizes Darra to finance projects within the urban redevelopment area by the use of tax increment financing. The Urban Redevelopment Plan Amendment will add the 2561 street property tax increment and sales tax increment areas. Each of these will derive their incremental taxes just from the project site. Dora staff has reviewed the budgets and pro forma submitted by the RE developer and believes there is a financing gap in the project of $4.2 million. This financing gap will be addressed through property tax increment and sales tax increment again generated by the redevelopment of the property. The site is currently owned by the developer who is paying approximately $31,000 per year today in property taxes. This amount will constitute the base taxes from which property tax increment will be calculated. The estimated taxable value following redevelopment and the sales taxes generated by the retail component are anticipated to generate approximately $481,000 per year in net property and sales tax increment. These incremental tax revenues will be used to reimburse the developer for eligible expenses of $4.2 million over 25 years.
Speaker 6: Let's skip that.
Speaker 11: One. As noted previously, City Council found the urban redevelopment plan to be in conformance with the planned and is applicable supplements. Accordingly, any amendment to the Urban Redevelopment Plan must also be in conformance with the Urban Redevelopment Plan objectives. To maintain the continuing conformance with comp plan 2000. The general objectives of the Walton Corridor Urban Renewal Plan. Or to reduce or eliminate blighted conditions and to stimulate the continued growth and development of the urban redevelopment area. The proposed projects meets the following objectives of the Walton Corridor Urban Redevelopment Plan, and I'm certainly not going to walk through all of these, but just highlight several of those, including the objective, to eliminate the present and growing factors which contribute to the blight in the urban redevelopment area 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, which will reduce dependance upon private automobiles for transportation, to encourage high and moderate density development where appropriate, including structured parking, and to promote a diverse mix of dense housing options. In bringing forward this plan amendment. There are a number of legislative findings that council must make. These include that a finding that the 2560 Welton Street Project is located within the 29 BLOCK Welton Corridor Urban Redevelopment Area, and that it will promote the objectives set forth in the Welton Corridor. Urban Redevelopment Plan must find that a feasible method exists for the 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.
Speaker 6: Business concerns will be displaced.
Speaker 11: By the project. Finding that written notice of this public hearing has been provided to all property owners, residents and owners.
Speaker 4: Of business concerns.
Speaker 11: 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.
Speaker 4: Of business concerns.
Speaker 11: In the Walton Corridor Urban Redevelopment Area on April 29th.
Speaker 4: 2016.
Speaker 11: 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 any 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 consider can consider an urban redevelopment plan amendment if they previously failed to approve that plan amendment. For this project, this is the first consideration by Council of the 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 the City Council. As such, the requirement to wait at least 24 months since any prior prior public hearing is inapplicable. Must find that the plan amendment is in conformance with the Denver Comprehensive Plan. On May 4th, 2016, the Denver Planning Board unanimously found that the proposed amendment to the Walton Corridor Urban Redevelopment Plan conforms to the Denver Comprehensive Plan in applicable supplements. And a letter to the effect has been submitted as part of the record of this hearing and a request. The City Council concur with that 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 Walton Corridor. Urban Redevelopment Area by Private Enterprise 2560 Walton Street.
Speaker 6: LLC.
Speaker 11: An affiliate of Palisade Partners, is the property owner and a private development entity who intends to undertake the redevelopment project. Council must also find that 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.
Speaker 4: Services required to.
Speaker 11: Serve development within the 2560 Welton Street Urban Redevelopment Area or project area for the period during which the incremental property taxes are paid to the authority. And the plan allows for cooperative agreements between the city and Doura to be brought forward to address additional infrastructure.
Speaker 4: Requirements in city services.
Speaker 11: Services should they arise. And finally, this amendment to the Walton Corridor Urban Redevelopment Plan contains provisions for property tax increment financing. The passage of House Bill 15 1348 amended the statute governing urban renewal activities and now requires that before City Council can approve a new urban renewal plan or an amendment to an existing plan, you must find that an agreement has been entered into among the city Dora and the affected taxing district in regards to the allocation of property tax increment to the project. There are two other property taxing districts Denver Public Schools and urban drainage and flood control. As noted earlier, there is a companion ordinance to approve the 2560 Welton Street Cooperation Agreement. This agreement generally directs the responsibilities related to the tax increment. In addition, the cooperation agreement requires DAERA to require the developer to comply with DORA redevelopment programs, including the provision of project art, the first source hiring policy, the utilization of small business enterprises, and the Enhanced Training Opportunities Program. To satisfy the new statutory requirements with respect to the inclusion in the plan of the tax allocation provisions authorized by Section 3125 107 Perin nine of the Colorado Urban Renewal Law, Dura has negotiated agreements with the two taxing entities. This process included.
Speaker 4: Noticing the entities.
Speaker 11: Of our intention to utilize property tax increment to support the redevelopment project. Following that notification. The taxing entities each evaluated the impact the project would have on their services. Both Denver Public Schools and Urban Drainage and flood control determined that the 2560.
Speaker 4: Welton Street.
Speaker 11: Project would have minimal service impacts and have each agreed to allow the full available amount of property tax increment generated by their respective maladies to be allocated to the project. Yeah. In closing.
Speaker 6: The Denver Urban Renewal Authority is pleased to work with the.
Speaker 11: City and county of Denver to bring forward this project. The redevelopment of this site and the delivery of 129 housing units with a combination of market rate 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 2560 Welton Street Project advances many of the Urban Redevelopment Plan objectives which are intended to revitalize this important corridor. And therefore, we ask for your favorable consideration of this amendment, and I'll be happy to answer any questions that you may have.
Speaker 2: Thank you, Tracy. We have two speakers for 322 Paul books and Tracy Winchester.
Speaker 6: Thank you, Mr. President. Thank you, council members, for having me back up here. Tracy Winchester. I live at 217 South Jackson Street and Way News District. I am pleased to support 2560 Welton Street because it is everything and embodies everything that we've been trying to do in our revitalization plan. Again, the plan, as outlined by Will Austin, was started in 2009, 2010, 2011, which talked about bringing in new business, bringing in density, bringing in residential. And this incorporates what we want for the area. We had plenty of community meetings again to make sure that everybody was in favor of what this was going to be about, because it is talking about eight stories and this is new for this area. And so we did have some people who commented on that, but we've been zoned since 2010 for eight stories. And this is something that we see is going to be critical for the redevelopment of the area. Thank you.
Speaker 2: Thank you, Tracy.
Speaker 7: Thank you, President and council. My name's Paul Brooks with Palisade Partners. And I'm just here to answer any questions you may have. Thank you very much. Thank you.
Speaker 2: That concludes our speakers. Time for questions from members of council. Councilman Flynn.
Speaker 8: Thanks, Mr. President. Tracy. Just a couple of questions to clarify.
Speaker 5: In my mind here. If I can pull up your presentation again.
Speaker 1: Mm hmm.
Speaker 5: The the tax increment amount is the amount of the principal, if you will. 4.2 million is included in the slide. I'm scrolling down here for the sources and uses, and the $4.2 million tiff reimbursement is listed as a source. Is that needed up front because this is a reimbursable I don't understand. So the developers are going to have to get a bridge or some sort.
Speaker 11: Okay. That is correct. Yes. The developer will.
Speaker 4: Borrow money.
Speaker 11: To pay for those.
Speaker 6: Costs that then will be reimbursed through.
Speaker 11: The tax.
Speaker 5: Increment. And I notice that most of the reimbursements are in the construction phase.
Speaker 6: That's correct.
Speaker 5: Okay. Thank you. Those are my two questions.
Speaker 2: Thank you. Councilman Flynn and Councilwoman PANITCH.
Speaker 11: Thanks so much. Real quick question for Paul, please. Hi. Thank you again for including some affordable units in here. I think we talked about this in committee, but I'm going to acknowledge my memory is not what it was 6 hours ago. Did you all figure out whether you're going to be able to accept vouchers on at least the 80% of I army units, if not the market rate ones, in terms of just being able to provide just a little bit expanded flexibility for the potential of renters who may bring a voucher with them.
Speaker 7: Yes, we started to explore that possibility. And this through our due diligence up to this point, it looks like we should be able to do that. We are actually the next step is to reach out to HUD directly and make make sure that we're not missing anything, but we are exploring that possibility.
Speaker 11: Great. Thank you so much. And I think this was mentioned, but just clarify for me, I believe that, again, might have been mentioned. Was there an ID loan in terms of the 80% of my units in this building?
Speaker 7: Yes, there is.
Speaker 11: Okay. Thank you very much.
Speaker 2: Thank you, Councilwoman and each Councilman Espinosa.
Speaker 3: Just a first blush at the rendering and stuff. It genuinely looks like a really thoughtful project and so I'm glad to see us investing in something that seems to consider context and the way forward. But I did want to ask the question, since we just got done with the five points of the discussion, how, what, what elements of the culture district, even though no guidelines or standards exist, what, what makes this sort of of five points, you know, what is what what features.
Speaker 9: So yeah, we.
Speaker 7: Really started with a strong base and made sure it was masonry, which is very common throughout the district. We also kept with the Chamfered corner a lot of the brick detailing. Another common thing these days are vinyl windows. These are all, Anderson, 100 windows. So they're of a much higher quality. They went down and looked at breaking it up into 100 foot increments at the maximum. So it looked like it was actually if you look at the rendering, it actually has kind of three distinct bases along the bottom. And then we are really excited from a cultural perspective. We are right at the light rail stop and so we actually incorporated a little bit of a more modern element. But the idea is, is, is to have this area that people are very comfortable coming in and trying to have the retail actually flow in somewhat in a mini Union Station concept and then also have the office users that kind of be able to peer down into this space to really create a congregational area to kind of create that vibrancy. So that's just one of or a few of many of our architects down here tonight.
Speaker 3: So that's good. Any new space for Councilman Brooks? In my comment, you know, I was noting some of the things that you were talking about. I sort of internalized that that break up of the massing along with that adjoined the light rail station and stuff like that. That's again, the stepping back to the levels and all that other stuff. So yeah, just be so that so far so good. But yeah, if there's some last bit of element placards or sort of terracotta naming or so, I don't know what some sort of detail that sort of again still reinforces where you're at. Please don't, you know, please consider that as well. If you get.
Speaker 7: Something, we actually will. The building's been in the Lydian, it's the Lydian mode. After jazz scale, we're really going to honor the jazz heritage at this building and then hopefully the Ionian comes as well next. So but the and then at the Wheatley, which is our project down the way, we were really honoring Phillis Wheatley, the first female African American poet, the why Phillis Wheatley YWCA used to actually sit on that that area. We're actually in the process of creating a digital book and collage. And then and then we've also worked with, you know, part of the DURA requirements is to have public art component and so on that project. And we're probably going to carry it into this project as well. We actually have some exterior cylindrical posts that during the day you can actually read up on the history of the Wheatley on the levee, and it would be about the Lydian. And then at nighttime, intellectually cache some down light in a way that I think we'll will hopefully create in the evening. Kind of a nice energy.
Speaker 3: So perfect. That's exactly what I was asking for. So things.
Speaker 2: Thank you, Councilman Espinosa. Councilwoman Ortega.
Speaker 4: Crazy. Can you tell me what the how the 80% EMI is spread among the unit mix?
Speaker 11: Sure. Um, and if I can.
Speaker 4: Pull.
Speaker 6: This back. Uh. There we go. So make sure that I'm.
Speaker 11: That I'm answering your questions correctly.
Speaker 6: So the the.
Speaker 11: Lower portion of that slide shows the mix of the 22 affordable units. So four of them will be studios. 16 are one bedroom in two or two bedroom.
Speaker 4: Okay, great. Thank you. I I know you covered that, but somehow.
Speaker 3: Sure.
Speaker 4: All right. Thanks for the question.
Speaker 2: Thank you. Councilman Ortega. Councilman Brooks. Yeah.
Speaker 3: You know, this is I want to I want to bring Paul up to kind of talk about this. And Paul, I know you reached out to Tracy, reached out to myself. One of the requirements so we don't talk a lot about but I will be talking a lot more about we, we, we those projects that are funded by TIFF, we actually have requirements around minority contracting as well. And so just tell us a little bit about what you've done with that and what you're trying some of the numbers you're trying to get to there.
Speaker 7: So are in two as part of our you know, part of receiving the financing, we're required to submit an SBA, SBA plan and I believe it is a 23% of our hard costs of the project need to be funded by it. It's it's they've actually changed the requirement recently but women and minority owned businesses. SBA small business may I should have Matt McBride of confluence companies come up because he's the one who manages that entire process and make sure that we're in compliance with all of that. But we've done the same thing on the Wheatley and we're carrying forward obviously on this project.
Speaker 3: Yeah. And and just a further comment because I think this is really cool and that a lot of developers have done this. Paul reached out to Tracy, reach out to myself and ask about some of these opportunities, working opportunities for folks of color, you know, on his project. So I thought that was really cool and I think we need to do more of that. We need to. Tracy I'm telling you that we want to see more of that and we want to see that accountability. If we're doing these private kind of projects, he's doing a project in a neighborhood that's tripled the unemployment rate in the city. And so it's important that we're connecting people with jobs. Thanks.
Speaker 7: Thank you.
Speaker 2: Thank you, Councilman Brooks. Any other questions? 322 CNN. Public hearing is now closed. Time for comment. Councilman Brooks.
Speaker 3: Yep. Thanks, Mr. President. Thanks. Members of council. Thank you to remember the council, who is who who voted in 2012 for the Urban Renewal District. Wow. To see the projects come up is is really exciting that that night many people stood up thinking that eminent domain was the main reason we were, you know, having a conversation. But really, it was about projects like this that fit the scale of the neighborhood, both the built environment scale and the spirit, the scale of the neighborhood. And so I I'm so excited to support this. The thing I want to call out and highlight is I think we celebrate here this passage, but we don't know the frustration and the hard work that goes into this, the meetings of of toiling over the performa to make sure that it's right with Tracy and whoever the developer is. The issues with RTD, because this is on the light rail and and some of the access issues that we have here, the neighbors realizing, oh my goodness, the entitlement is a a zoning of, as you might say. And so all of those issues go in OED trying to figure out how what's the next level of affordability in housing in this. And so you know, Paul, thank you for, you know, fighting the good fight. I hadn't mentioned landmark, my goodness, which is a whole nother deal, but it all came out to be an excellent project. And one of the real mixed use projects, I mean, retail office and housing and different levels of affordability. So we're really excited. And Tracy, thank you so much. Many don't know that Tracy Huggins early on when we first did the urban renewal area said, hey, let's meet every other Friday with some developers, with stakeholders in the community to try to gin up some support. And, you know, I'll never forget those early mornings, like, what are we doing? But they're proven to be fruitful. So thank you. Thank you all for working really hard on this. Thanks.
Speaker 2: Thank you. Councilman Brooks, you know the comments, 322. CNN. Madam Secretary, welcome.
Speaker 4: Black eye. Brooks Clark. Espinosa. Hi.
Speaker 13: Flynn I.
Speaker 4: Gillmor, I.
Speaker 9: Cashman I.
Speaker 11: Can hear.
Speaker 4: You. Ortega Hi. Sussman, I. Mr. President.
Speaker 3: I.
Speaker 2: Councilman Clark, did you want to give a voice vote?
Speaker 7: I. All right.
Speaker 2: Karmel Madam Secretary, please. Because the voting announced the results.
Speaker 4: 1204.
Speaker 2: By 322 is in place on final consideration and do pass. Lastly, Councilman Clark, we need Council Bill three, 23, four and five on the floor for final passage in a block.
Speaker 9: Thank you, Mr. President. I move the council bills 323, 324 and 325 be placed upon final consideration and do pass in a block.
Speaker 2: It has been moved and seconded. Any comments? Catherine Brooks I'm assuming you don't have comments. I say that? All right. Madam Secretary, roll call.
A bill for an Ordinance authorizing and approving an amendment to the Welton Corridor Urban Redevelopment Plan to add the 2560 Welton Street Project and to Create the 2560 Welton Street Tax Increment Area.
 (FINANCE & SERVICES) Amends the Welton Corridor Urban Redevelopment Plan for the 2560 Welton Street Project in Council District 9. The last regularly scheduled Council meeting within the 30-day review period is on 6-13-16.  The Committee approved filing this bill by at its meeting on 5-3-16.