Revitalization Commission Agenda and Packet 2022 06 01

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SUBJECT: PUBLIC INFRASTRUCTURE ASSISTANCE AGREEMENT SPLIT MOUNTAIN COMMERCIAL 4 LLC DATE: JUNE 1, 2022 PAGE 3 OF 7 k.5 High Service Requirements or Site Underutilization At the time of the Highway 42 Conditions Survey Report, 950 Spruce Street was the location of the Louisville Library. There were no blight factors identified for the property. As noted by the applicant, this property has experienced persistent vacancies, even for first floor retail space, which is generally in high demand downtown. Though it is a commercial corner, the west side is adjacent to a public alley and the south side is a traditional parking lot, with a curb cut onto Front Street. The driveway curb breaks -up what could be a more consistent building fagade on Front Street and is less appealing to pedestrians. Staff feels these factors make a particular impact to this property, even though it is directly across the street from the highly active Louisville Library. The applicant proposes that four of the eleven blight factors are present on the property: • (A) Slum, deteriorated, or deteriorating structures: Commercial building has had consistent vacancies and is currently 46% vacant. • (C) Faulty lot layout in relation to size, adequacy, accessibility, or usefulness: Parking lot entrance adjacent to Front Street will be eliminated to activate the sidewalk and create consistent street frontage with building. • (E) Deterioration of site or other improvements: Sidewalk, curb, and gutter is non -compliant and requires repair; driveway curb cut will be eliminated. • (F) Unusual topography or inadequate public improvements or utilities: Xcel service requires upgrade; new residential units will be all -electric. Stormwater drainage and irrigation need to be addressed. Although vacancies have been persistent and can certainly lead to blight over time, the existing structure at 950 Spruce is not in a slum or deteriorated condition. In this area, participation by the LRC would be with the goal of preventing blight should vacancies continue and the building not be in a viable operating position. Staff concurs with the other three blight factors presented by the applicant. There are unique property conditions, that in tandem with market direction, are negatively impacting property performance —and detracting from this as a key commercial corner in downtown. Positive Effect on Property Values: To align with the objectives of the Highway 42 Plan and to further the current goals of the Commission to make sound investments, the project when completed should have a positive impact on property value. Increases in property value have a positive revenue impact on the URA and the ability to fund future opportunities; in addition, increases tend to have spillover effects to adjacent properties and the surrounding area. The Boulder County Assessor lists the value of 950 Spruce Street as $3,570,000, with an assessed value of $1,035,300. The actual and assessed value considers both the structure itself and the land. The Assessor lists the estimated property taxes for the property as $95,883. There are currently no retail type businesses in the building — meaning the City is not receiving any Sales Tax revenue from this commercial property. LOUISVILLE REVITALIZATION COMMISSION Agenda Packet P. 15