1. Heartland Corner Redevelopment Project
August 1, 2017

2. Direction
Staff is seeking direction from Council on the negotiations with the developer:
Continue with the negotiations and bring an agreement back for consideration by Council
Identify and implement the HIP Streets infrastructure plan where feasible

3. agenda Project and Project Status Proposed Deal Points
Public Improvements
Parking
HIP Streets Infrastructure Plan
Scope of the improvements
Timing
Questions/Council Direction

4. Project

5. Project

7. Proposed Deal Points City Would… LURA would…
Provide up to $1,650,000 to the Loveland Urban Renewal Authority for public improvements in support of the project
Waive materials use tax
Invest the funds in public improvements including the streetscape, alley, utility and other public improvements
Repay the City with 3 percent interest from the tax increment finance and sales tax generated by the project

8. Proposed deal points Developer would… Complete the project
Provide a corporate guarantee (not through the LLC) for the repayment of the City’s investment
Agree to share in the sales proceeds if the property sells within 10 years of completion

9. Proposed Repayment schedule/Guarantee
The table is an estimate; the guarantee will reflect the final negotiated contribution
The Developer will not agree to a guarantee to the additional work related to the HIP Streets Plan infrastructure

11. HIP Streets Infrastructure Plan
Approved in 2009 but it is being updated, it is expected to be brought before Council in November 2017, however the proposed parking configuration is not expected to change
For that block, the sidewalks are extended and the angled parking becomes parallel
Caveat: Seeking direction, but we do not have cost estimates at this time for the additional proposed streetscape improvements
There is a question of timing the HIP Streets Plan infrastructure improvements with the redevelopment project

12. Hip Streets infrastructure plan
Option
Pro’s
Con’s
Completed by
#1 Complete the minimal streetscape work required for the project
Initial cost to the project is reduced
Any improvements will be throw away when the HIP Streets Plan is implemented
Developer
#2 Complete north side of 4th Street only
Opportunity to complete a portion of the HIP Streets plan
The improvements will cost more and there will be additional disruption to the property owners when the south side is completed
City
#3 Complete both north and south sides of 4th Street
Opportunity to complete a block from the HIP Streets plan and improve the streetscape
The cost will be higher and there will be disruption to the adjacent properties

13. Questions/Council Direction