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RESOLUTION APPROVING AMENDMENT TO 2012 INTERGOVERNMENTAL AGREEMENT BETWEEN THE CITY OF COMMERCE CITY AND THE URBAN RENEWAL AUTHORITY OF THE CITY OF COMMERCE CITY
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Summary and Background Information:
• The Council approved a loan of $4 million to the Urban Renewal Authority (URA) in 2011 to purchase the Mile High Greyhound Park (MHGP) for redevelopment.
• The URA purchased the MHGP in 2011.
• The URA then requested the loan of an additional $2.5 million in 2012 for the demolition of the buildings on the MHGP property and Council approved that request.
• The URA demolished the MHGP buildings but then found an old landfill from a previous building demolition and encountered additional costs in cleaning up the landfill.
• At the beginning of the demolition the URA purchased an environmental insurance policy, which covered most of the cost of the additional clean-up, leaving net costs for the URA in the amount of approximately $185,663.
• Therefore the URA is requesting an amendment to the second loan agreement and promissory note in the amount of $250,000 to cover the additional costs and to provide a small amount for operating funds.
• The amendment to the loan agreement and promissory note requires resolutions by both the City Council and the URA Board.
• In addition, the Council will need to amend the 2014 budget to provide for the additional loan amount.
Staff Responsible (Department Head): Jim Hayes
Staff Member Presenting: Jim Hayes
Financial Impact: $250,000
Funding Source: Fund balance in General Fund.
Suggested Motion: I move approval of Resolution 2014-10.