City Council Agenda and Packet 2015 09 01

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City Council Meeting Minutes August 18, 2015 Page 14 of 18 covenants before they purchase of the property. She felt urban renewal was an appropriate tool for this property and the community is interested in filling the space. Council member Leh asked Mr. Bergman about the statement in his letter, which states Albertsons is prepared to institute a civil action, pursuant to Colorado Civil procedures to challenge the legality of the proposed plan, should it be adopted and will vigorously oppose the unconstitutional exercise of eminent domain powers to transfer properties from one private owner to another at the cost of Albertsons property interests and the restrictions. He asked if Albertsons position is that the mere adoption of the plan is a significant legal predicate to bring forward a civil action. Mr. Bergman stated it is certainly Albertsons position it is within their legal rights to challenge the adoption of the plan and referred to the Cooperation Agreement where the mandatory language of "shall" was used. He stated he is authorized to say Albertson's is prepared to challenge the plan if it is adopted. He stated Albertsons prefers to reach a mutually beneficial resolution that does not require taking Albertsons property rights and the installation of a competitor immediately next door. Council member Leh asked Mr. Bergman if he agreed the adoption of the plan is not the exercise of eminent domain power. Mr. Bergman stated he was not prepared to concede that point as it takes away Albertsons ability to file a lawsuit. Council member Leh voiced his concern over the intentions and the suggestion of a potential plan on the part of the City. He stated it is important to know the City Council has not made any decisions and the only thing on the table is the adoption of the urban renewal plan and the cooperation agreement. Mr. Bergman stated Albertsons agrees and referred to Council member Stolzmann's question. He explained Centennial Investments was one of the purchasers of the former Sam's Club site, which closed in January or March of 2014. A letter, dated January 6, 2014, from City Manager Fleming, stated "the City is exploring all options to allow the purchase of the property without the use restrictions ". Mr. Bergman stated it is likely the use restrictions were placed by Sam's Club for the sale of the property and noted those use restrictions can be removed by the new owner for a payment. Albertsons feels this is being sidestepped by the new owner. The letter also states "the City staff and I are willing to recommend to the City Council, actions to alleviate these factors (he felt it was a reference to other restrictive use covenants favoring neighboring properties) if it would result in appropriate new tenants for the property ". He noted Albertsons has concerns about what has transpired between the City and the owner of the property. City Attorney Light requested Mr. Bergman provide a copy of the letter to the City Clerk so it could be made part of the record. Council member Stolzmann asked Economic Development Director DeJong if the urban renewal plan, which includes requests for proposals to purchase or buy out the use 31