Title
RESOLUTION APPROVING SECOND 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 URA initially operated under a budget of $4 million for the redevelopment of the property after a loan from the City. This included land acquisition, property management, and preliminary planning expenditures. The contract for the demolition and abatement was estimated at an additional $2.5 million, which necessitated the need for an additional loan from the City to the URA. Then, in October of 2013, the City loaned an additional $250,000 to the URA for final demolition/remediation and operating expenses. This additional amount brought the total loan amount to $6.75 million.
Currently, there is a balance of $28,982 remaining, which is not sufficient to cover the expenses of the site, such as weed maintenance consultant services. Therefore, staff is recommending the City Council consider an amendment to the loan agreement to provide an additional $100,000 to the URA for the MHGP Redevelopment Project. This amount was already approved by City Council in the 2016 annual budget, so the funds are already present. The amendment to the loan agreement is required to formalize the transfer of funds.
Staff Responsible (Department Head): Chris Cramer, Community Development Director
Staff Member Presenting: Chris Cramer, Community Development Director
Financial Impact: $100,000
Funding Source: 2016 Budget
Staff Recommendation: Staff recommends approval of the amendment to the loan agreement.
Suggested Motion: I move to approve Resolution 2016-18