Revitalization Commission Agenda and Packet 2013 01 28

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11 City,/ Louisville COLORADO • SINCE 1878 LOUISVILLE REVITALIZATION COMMISSION SUBJECT: DATE: DELO APPLICATION FOR ASSISTANCE JANUARY 28, 2013 PRESENTED BY: AARON M. DEJONG SUMMARY: DELO, LLC has submitted an application for assistance from the Louisville Revitalization Commission. This memo is a review of the application and a recommendation from staff for the level of assistance to the project for the construction of public infrastructure to service their project. BACKGROUND: The DELO project rests in the center of the Urban Renewal Area, totaling 9.23 acres along the east edge of the Burlington Northern Santa Fe (BNSF) railroad. The developers owning the project, RMCS, have incrementally acquired this property since 2010 and intent to construct a mixed -use neighborhood of varying residential products and commercial space. The project consists of building two apartment buildings with 130 apartments and 12,000 square feet of commercial space. The project also anticipates 30 cluster homes and 59 rowhomes. A graphic of the site plan is attached. Estimated total private development costs for DELO are $53,000,000. The submitted application did not include a 10—year proforma for the project or a Sources and Uses Budget. Staff accepted the application without this information for the following reasons: 1) The Urban Renewal Area was formed to invest in projects which address blighting factors. This request is for infrastructure to remove barriers to development for property owned by DELO as well as property adjacent to the improved infrastructure. Conducting an analysis to show whether projects utilizing the needed infrastructure investment can absorb the costs for the improvements may not be warranted in this request. 2) The request for assistance is not an incentive to attract a development. The applicant is not requesting funding to make the project profitable. The request is for infrastructure to make the resulting development possible. 3) Multiple properties will utilize the new public infrastructure, including the public. The new streets and underground infrastructure will not only be used by DELO, other adjacent property will have the infrastructure barrier removed for their future redevelopment plans. The new streets provide an additional travel corridor (although not as convenient by design) for traffic travelling north and south, which is perceived as community benefit and a critical element for Highway 42 to remain as a three lane corridor. Conducting an analysis whether only the DELO redevelopment can accommodate the infrastructure costs may LOUISVILLE REVITALIZATION COMMISSION