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HomeMy WebLinkAbout910503.tiff RESOLUTION RE: WELD COUNTY BUILDING LOCATION WHEREAS, the Board of County Commissioners of Weld County, Colorado, pursuant to Colorado statute and the Weld County Home Rule Charter, is vested with the authority of administering the affairs of Weld County, Colorado, and WHEREAS, in 1986-87, the Board of County Commissioners of Weld County developed a plan for future County facilities, and WHEREAS, in 1988 in accordance with the plan for future County facilities the Board developed the Weld County Business Park, located at "0" Street and 11th Avenue in Greeley, Colorado, and WHEREAS, the policy of the Board of County Commissioners of Weld County, Colorado, was to develop all future central County facilities at the Weld County Business Park, and WHEREAS, since the above stated policy was adopted over $3 million in facilities have been developed on said site, and WHEREAS, a Long Range Capital Plan, a copy of which is attached hereto and incorporated herein as Exhibit "A", presented in January, 1991, called for the expansion of administrative offices at the Weld County Business Park, and WHEREAS, after the above presentation of the Long Range Capital Plan, downtown property owners approached the County to expand in the downtown area instead of the Weld County Business Park, and WHEREAS, the Board directed staff to evaluate the downtown alternatives, and WHEREAS, on May 29, 1991, a report evaluating the alternatives, marked as Exhibit "B" and attached hereto and incorporated herein by reference, was presented to the County Commissioners, and WHEREAS, the Board agreed to evaluate the location sites on the basis of the most economical site for all citizens, future flexibility of space utilization, and accommodating parking needs. NOW, THEREFORE, BE IT RESOLVED that the Board of County Commissioners of Weld County, Colorado, based upon all the above factors, hereby selects the Weld County Business Park site as being in the best interest of all Weld County citizens for future County facility expansion, thus leaving the Board's past policy on location of new facilities unchanged. 910503 /-/ �r' ! A Page 2 RE: WELD COUNTY BUILDING LOCATION BE IT FURTHER RESOLVED that County staff is hereby directed to prepare a Request for Proposal for an architect to design and prepare bid specifications for the construction of an approximate 30,000 square foot building to house the offices of the Assessor, Treasurer, Clerk and Recorder, Engineering, and Road and Bridge. BE IT FURTHER RESOLVED that the Board hereby directs construction to commence as soon as possible on the above office facility to accommodate space needs of the jail and court facilities. The above and foregoing Resolution was, on motion duly made and seconded, adopted by he folio ng v to on the 17th day of June, A.D. , 1991. BOARD OF COUNTY COMMISSIONERS ATTEST: ��� WELD COUNTY C ORADO Weld County Clerk to the Board (AYE) Gordon . cy, Ca an By: Deputy Cler to the Board c Geo a Kennedy, Pro-Tem APPROVED AS FORM: C% denzt Constance L../Harbert X/1 � G.c.-G� (AYE) County Attorney C. W. Ki y ii(//)V V ��7A (NAY) W. H. Webster L 910503 RECOMMENDATIONS: Immediate (1991): 1. Move Consumer Fraud (D.A. ) across the street to provide relief to D. A. space needs (February, 1991) 2. Move Building and Grounds to Second Street (February, 1991) 3. Move Printing & Supply to old Building and Grounds location (February, March, 1991) 4. Remodel old Printing and Supply area into Training Center for Sheriff (March - May, 1991) 5. Using office landscaping realign Sheriff's Office space to relieve space needs (May, 1991) 6. Ambulance: A. Purchase land on 8th Avenue and construct 5,400 sq. ft. steel building for main station, similar to Western Hills Fire (1991) B. Relocate current ambulance building to West Greeley site. (1991) Short-Term (1-5 years) : 1. Construct a 34, 000 sq. ft. office building at Weld County Business Park and locate: A. Assessor B. Treasurer C. Clerk and Recorder D. Road and Bridge Administration E. Engineering 2. Allow District Attorney to expand into Assessor's former office area. 3. County Court clerical support relocate to Motor Vehicle and Elections former area. 4. Useful Public Service relocate to Treasurer's former space. 5. Relocate Law Library to Recording's old space. (Space designed for high load limits. ) 6. Expand Probation into former Useful Public Service area. 7. Convert old Law Library space to small court room for referee. 9105n:3 8. Convert former County Court clerical support area to District Court Room and support area. 9. Construct Road and Bridge warehouse adjacent to existing Road and Bridge Headquarters or County Shops area. 10. Move HRD Transportation unit into old Road and Bridge Headquarters. 11. Construct modular classrooms for Headstart and phase out Central school location. 12. Construct 150 bed minimum security facility at Weld County Business Park. LONG TERM (5-15 YEARS) : 1. Construct 30,000 sq. ft. office building at Weld County Business Park and locate: A. Commissioners B. Finance/Administration C. Accounting D. Personnel E. Purchasing F. County Attorney G. Planning H. County Council I. Road and Bridge (optional) 2. Construct Health Building at Weld County Business Park. 3. Further expansion of correctional facility as needed. 4. Expansion of courts, District Attorney, and Sheriff into vacated space of Centennial Complex. Centennial Complex becomes Criminal Justice Center. 5. If court expansion required, Sheriff's Office and Jail could be relocated to Weld County Business Park and existing space converted to court space. Jail should be retained as maximum security facility as long as possible. PROBLEM: 1. Courts are anticipating the following impacts: A. Additional referee appointment July, 1991 or 1992. (Small courtroom and one clerical office) B. New District Court Judge within next 2-5 years (Courtroom, chambers, jury room, and 3 clerical offices) C. County Court clerical support is in need of space D. Probation anticipates 3-5 additional staff in next 1-5 years 2. Sheriff's Office A. Minimum security facility for 150 inmates B. Office space and training room needed immediately 3. District Attorney A. Office space needed immediately 4. Assessor A. Office space needed immediately 5. Road and Bridge A. Office space to consolidate managers (4, 000 sq. ft. ) B. Warehouse to consolidate Road and Bridge operations 6. Headstart A. Condition of existing facility B. Expansion on District 6 sites 7. Ambulance A. Relocate from hospital to two sites 8. Health Department A. Long term vacate leased hospital space 9105n ISSUES: 1. Financial Considerations 2. Downtown development vs. Weld County Business Park 3. Parking 4. Expansion Capability INTERRELATED ACTIVITIES: Criminal Justice: . Courts . Sheriff . Jail . District Attorney . Probation . Useful Public Service . Coroner County Administration: . County Commissioners . County Attorney . Finance/Administration . Accounting . Personnel . Purchasing . Planning . Computer Services (optional) . Road and Bridge Administration (optional) County Functions: . Assessor . Treasurer . Clerk and Recorder Unrelated: . Road and Bridge . Communications . Veterans . Coroner . Headstart . Extension . Buildings and Grounds Human Services: . HRD . Social Services . Health 91.05 CASH FLOW ANALYSIS CASH REVENUES EXPENDITURES RESOURCES BEGINNING ENDING FUND CAPITAL FUND BALANCE FUND CONSTRUCTION BALANCE 1991 $1,250,000 $1, 058,800 $2, 068,800 $ 240, 000 1992 240, 000 943, 000 1, 183, 000 -0- 1993 -0- 991, 000 947, 000 44, 000 1994 44, 000 1, 040,000 900, 000 184, 000 1995 184, 000 1, 141,000 50, 000 1,275, 000 • 91_052q a; O 1 I I 1 I 1 I O O En O O O O O O O O O O 0 CI I I I I I I I CD O O En 4 a r-1 o H a) O+ 0 v1 .Y i+ H 0 H b 3 r- H n 0 G Ed ) 0 I I I O O I I 0 O a O O O O O O O O O O N O I I I O O 1 I O O 0 .1 O Oc O O o o O 4 O d v r 1 O cn d a> H HI N c0 O 44 0 H O V) U G O HI O I I 0 1 I I I O O 1) O 000 O O O O O O O I I o l+ I I I I O O cr, O` v n o r-I a) a1` .t aT En a` N ri co D` G O U V3 O on CO G G CO •r1 a it H N I I I CD I I 0 I O O •O O O O O O CD O O O 0 0 o A 0 U I I I o I I I o o v10 0 01 0 o CO al cr. '' rn O cn In m u o � H H H W HI a HI H w I .7 di O HI e O El H G O O. 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Warden we�.er Facility Location In 1986-87 the Board of County Commissioners directed staff to develop a site for future County facilities. At that time sites throughout the Greeley area were studied for the purpose of locating future County facilities. Based upon the study, the site at North 11th Avenue and "0" Street was determined by the Board as the best site for a campus like site, that could accommodate all County facilities at a central location. The site was purchased, and with the assistance via a grant from EDA - Department of Commerce, the Weld County Business Park was developed. The business park was developed in conjunction with the City of Greeley's cooperation and support. In the course of submitting the City of Greeley's land use applications and annexation application it was fully disclosed that the site would be used for economic development sites and County facilities. The County facilities were described as a jail, administrative offices, motor vehicle shop, warehouse, school, and storage facility. The PUD was approved and the site annexed on May 17, 1988 on that basis. Public hearings were held by the County and the City of Greeley regarding the land use changes and annexation during this process. In 1988-89 the County proceeded to construct the Human Resources Building, County motor vehicle shops, and fueling facility, which was an investment of nearly $3 million. In 1991 at the Board's direction during the 1991 budget process, a capital plan for the next 10-15 years was developed to accommodate future County facility needs. The plan was consistent with the Board's policy position developed in 1986-87 for capital planning that proposed locating all future facilities at the Weld County Business Park at "0" Street and North 11th Avenue. After presentation of the Long Range Capital Plan, downtown Greeley property owners approached the County to expand in the downtown area instead of the North Greeley site. At your direction downtown site alternatives have been developed for your consideration. The only viable options are: . ARIX Building . United Plaza Building . Purchase block to raze and construct a new facility (Block 63) An in depth study of the ARIX Building (attached) concludes that the ARIX Building is not a very economically viable option. Purchase of it would cost the County up to an extra $2 million, depending upon the various scenarios over the next 20 years. 91.05C1 The purchase of a city block would cost the County at least an extra $1,300,000+. In addition there is owner resistance to the sale of some properties. The County has no condemnation rights for the acquisition of land for office space, and would have to rely upon the City of Greeley to condemn. The demolition of the block would require the dislocation of several retail establishments, and spread County facilities over downtown locations. The proposal of building on Block 63 as an option includes a lease/purchase build-to-suit building. However, with the County's capital funding and tax exempt financing, a lease/purchase from a third party provides no economic incentive. Of the three options the United Plaza Building is the most economically viable. The attached proposal from the owners gives a good description of the facility. The County would have to look at either remodelling the building to make it efficient for County use or use it as is as a less efficient building, due to the division of the building into executive offices versus the open space required by the County operations. Since the building is only 29, 100 square feet, it would only resolve the short range space needs, meaning the County would be back looking at either the north site or other downtown options in 5-10 years. (See attached analysis of use. ) Both the ARIX Building and the United Plaza Building would require dislocation of existing tenants, thus having a potential loss of employment base to downtown Greeley, similar to County employees leaving. If it is the desire of the Board to continue to expand County facilities in downtown Greeley, then the United Plaza Building is the staff recommended option. This option needs to be weighted against the standing Board's policy developed in 1986-87 to locate all future County facilities at the Weld County Business Park at "0" Street and North 11th Avenue. This decision of the Board will set the direction of the County building program on a long-term basis for the next 20-30 years. Future expansion in downtown Greeley will be at the added expense of subsidizing the Greeley downtown development efforts, unless the City of Greeley or downtown land owners can provide competitively priced land to the $2,000 per acre land already owned by the County at the Weld County Business Park. The decision is a policy decision for the Board of County Commissioners. With the need for jail expansion in the next 12-18 months, it is suggested that the Board make a decision by mid-June, 1991, so staff can proceed in providing the needed space accommodations as directed by the Board. 91.05” ARIX BUILDING 91_0593 1 DOWNTOWN GREELEY VS. NORTH SITE ANALYSIS The following report is an analysis of the ARIX Building and County buildings at the Weld County Business Park. The Board's intent in 1985-1986 with the development of the Weld County Business Park was to locate all future County facilities at that location because of the efficiencies and economics of a campus setting. Three County facilities are already located at the site: Motor Vehicle Shops, Road and Bridge, and Human Resources. In 1991, a fourth facility will be built (Ambulance Headquarters) . The space plan developed in early 1991, called for two future facilities to be built over the next 2 to 15 years to displace County functions in the Centennial Complex, as that facility was transitioned into a criminal justice center. Downtown Greeley property owners raised the issue in early March of the County leaving Downtown. Suggested options are the ARIX Building or building on Block 63, primarily owned by John Todd and his family. The reasons for not expanding in Downtown Greeley in the original plan were the cost of land, parking, desire not to piecemeal facilities throughout Downtown Greeley, and ultimate lack of space to expand over a 20 to 30 year period. Background The Arix Building has initially been offered to the County at an appraised value of $2,750,000 based upon an appraisal done by Bridwell and Company on December 1, 1989. The property, which is located at the southeast corner of 8th Avenue and 8th Street, consists of a 72,943 gross square foot building situated on a rectangular 17, 488 square foot site. The basement level contains 20,677 gross square feet of office area and extends beneath the sidewalk area. The improvements were originally constructed in 1965 as a department store and consisted of some limited upper level office space. The improvements were mostly renovated in 1983 as office finish. The building has 60,272 square feet of net rentable office area. Above grade floor plates average approximately 13, 198 square feet of net rentable area ranging from 12,425 square feet to 13, 666 square feet (76% efficiency) , according to property management's calculations. There is no on-site parking although there is public parking available which is adjacent to the subject. The property is owned by a group of investors listed as follows: Guarantor ARIX Investors, Ltd. Gary R. Windolph N. Kent Baker C. Neal Carpenter Robert Shreve Eugene R. Brauer Eugene Brauer Family Trust Patrick C. Dwyer 910 2 Dale J. Steichen Gordon W. Bruchner Robert D. Thomas William Clark Linda Clark Les Ewegen Judy Ewegen John K. Jerome Linda L. Kadlecek James Kadlecek Charles Kadlecek John Kadlecek Ted Nelson Gene Pepin Robert W. Stanley Chris Scott Larry Scott Darrell Schurle Harriet Schurle Bill Kehler Pat Kehler Dale Boehner Stanley Commercial Radio Company Dorothy M. Stanley Richard R. Bond B-2 Properties Robert A. Stanley James A. Vohs Ruth L. Vohs Ralph Boehner Harriett Boehner F. W. "Fritz" Barsch Barbara Piper Greeley Sheltership ARIX, A Professional Corporation The building was financed by an Industrial Revenue Bond issued by Weld County in 1983, in the amount of $2,800,000. The outstanding balance is $2,300,000 payable as follows plus interest: Payment Date Principal amount December 31, 1991 $100,000 December 31, 1992 $110,000 December 31, 1993 $120,000 December 31, 1994 $125,000 December 31, 1995 $140,000 December 31, 1996 $150,000 December 31, 1997 $200,000 December 31, 1998 $200,000 December 31, 1999 $220,000 December 31, 2000 $240,000 �p qy 3 December 31, 2001 $240,000 December 31, 2002 $240,000 December 31, 2003 $240,000 The debt is held by Greeley National Bank as the original bond purchaser in 1983. The building is assessed by the Weld County Assessor at actual value of $1,962,694. In contacting current and former tenants (some who indicated I could use their name, other preferred I did not), general comments of concern were as follows: - Parking is a problem. - Heating and air conditioning have been a major problem. - One elevator is old (26 years old) and slow (5-10 minute waits at times) . - Only one elevator goes to basement. - Stairs are narrow and long (2 flights per floor) . - Heating pipes have broken and flooded areas. - A stream runs under structure and pump in elevator shaft runs constantly (floating slab) - Building hard to give directions to public, e.g. you have to go outside from first floor elevator to state offices on south side first floor. - Building has become a "government image building", therefore not good to market private businesses. - Offices have unit floor heaters in winter and open doors in summer. The main complaint was heating and air conditioning. I contacted Jerre' Hamilton in Laramie, Wyoming, who was the lead mechanical engineer for ARIX in 1983, when the system was redesigned. The original design engineer was Matt Pearson, and Hamilton only checked work. Neither are with ARIX any longer. He indicated the system has had problems. Specific issues are: - Cooling tower is old. - Boiler is original and was only re-tubed in 1983 (26 years old) . - There are design problems with heating. It was undersized, especially the baseboard elements. (Hence the space heaters at desks. ) - Control system has had problems. (Owner indicates this was corrected last year. ) - Air handling is marginal system. - New controls and new system in basement. The remaining HVAC is old with some supplemental modification to make variable volume system. Kent Baker was the principal on the job. He indicated the building was structurally sound. Inside redone, except for HVAC. New electrical inside brought up to 1983-84 code. Roofing was all new in 1983. Stream does exist under building but floor is floating slab with pressure on slab to avoid flooding. Pump in elevator shaft does run most of the time. Original elevator not replaced, only the additional one. 91.05n1 4 In evaluating the useability of the building for County purposes, it is not useable as is. The County offices to be located there initially (Clerk and Recorder, Treasurer, and Assessor) are all open space concept functions if you observe them. The ARIX Building is divided into multiple office suites, except the basement. The space would have to be remodeled with new tenant finish to be useable. The cost per two architects and reviewing construction cost publications would be $25-30 per square foot. Initially 34,000 square feet would be required to be remodeled. Eventually all the space would need to be remodeled. A full cost analysis of the ARIX Building versus new County structures will be addressed later in this report. Issues: The following are issues to be addressed prior to a cost analysis: - Parking: A major problem and complaint area from the public and employees has been the parking in Downtown Greeley. The problem will continue to exist at the ARIX Building. The building includes NO owner parking, only adjacent City owned parking. The total adjacent parking including the Murphy Lumber yard lot, City parking, and off-street is under 300 spaces. The train depot has another 300 spaces but is up for sale for $165,000. Three of the plaza blocks compete for the spaces to the east of the plaza as well as one block to the south, in addition to the ARIX Building needs. Ultimately 160+ employees would occupy the ARIX Building taking nearly one-half of the available parking, assuming the County or City purchased the train depot lot. Without the depot, County employees alone would consume all the parking in the area. - Age of Building: The original structure is 26 years old versus new construction in 1991-92, and another in 2001-2005. With the age goes costs for roofs, elevators, boiler, carpet, etc. - Elevator/Stairwells: With heavy public traffic, existing elevators could be a bottleneck. The stairs are narrow, two flights per level and unfinished. There could be a safety and traffic issue for public, especially elderly. One elevator is 26 years old and would need to be replaced in the future at a cost of $50,000. - Handicap: Access is available but more limiting than a single story structure on grade with abundant parking close to the building. - HVAC: Mechanical system has had problems and a new owner could expect to replace 26 year old boiler within the next 5-10 years. - Expansion: Future expansion for County needs in the 25-30 year time frame would face limitation in the Downtown Greeley area. - Landlord: The County only has need for half of the ARIX Building in the next ten years. This places the County in a landlord role with all the risks and problems. The cost analysis depends upon keeping the building leased at a rental growth rate of 45. With the County occupying the space and the other state and federal offices, the building would become a "government" building limiting its rental market to governmental agencies and non-profit organizations. One former 91.05'11 5 tenant moved for that very reason. With government reduction, some risks exist, such as state unemployment insurance vacating space recently. To locate County offices in the building will require the relocation of some existing tenants, since they occupy all floors except the basement if ARIX vacated their space. Over the next ten years, the new owner can expect to be asked to replace carpet and paint with the remodelled building already being eight years old. Consolidation of County Facilities: The long range plan started nearly five years ago would need to be modified if the ARIX Building was purchased since that initiative would be put on hold for nearly 15 years or abandoned all together. Future Buildings: The immediate space needed is for a 34,000 square foot building. It is anticipated that in the next 10-15 years, another 30,000 square foot building would be planned. However, there are a number of unknowns between now and ten years regarding space needs. Tax limitation, governmental organizational and programmatic changes could impact space needs dramatically. The legislature or referendum process would change the requirement of providing state court space, thus significantly reducing future county space needs. Custom Built Building: New structures can be custom designed for the exact County need. Even with a remodel of the ARIX Building, certain custom features, such as multiple access point cannot be accommodated. Cost Analysis: A detailed cost analysis has been done to compare the ARIX Building life cycle costs over a 10 to 20 year period to new County structures. Several scenarios were developed to address different purchase prices and phase-in of occupancy. To do an equitable analysis, conservative assumptions were made for the ARIX data, giving it the benefit of the doubt. Specifically, that available space would be rented similar to current tenants for the 10-20 year analysis. Cost data for the ARIX Building was taken from the ARIX provided appraisal with the same assumptions used for the income approach of the appraisal (details on page 43-44 of appraisal) . Basic assumptions of cost growth are used for both buildings. Cost data for new County structures are based upon the cost history of the new HRD building, which is the model for the new building, i.e. similar design and construction. The figures for the 15,000 square foot HRD Building were extrapolated to determine figures for the new structures with square footage figures of 34, 000 and 30,000 square feet. The new structures only total 64,000 because like the HRD Building, they are 92% efficient from a useable basis due to no elevators, large mechanical area, hallways, stairwells, etc. , versus the ARIX Building, which is only 76% efficient currently and with remodelling with corridors due to multi-level, would be in the low 80% efficiency level. 01.®col 6 be in the low 80% efficiency level. The cost analysis scenarios demonstrate that the ARIX Building over a 20 year life cycle does not approach a break even point with new County structures unless the ARIX Building could be purchased for $1, 747,000 without parking and remodelling costs of $25 per square foot. The break even point for the most realistic comparison is a purchase price of $1,295,031 plus the purchase of the train depot parking for $165,000 or a total of $1,460,031 with remodelling costs at $30 per square foot. This price would be nearly $1,455,000 off the asking price of $2,750,000 and $1,005,000 below the outstanding debt of the building. Although the price is substantially below the appraisal done December, 1989, it should be noted one of the comparable buildings used for the market value was the Madison and Main Building across the street that was remodelled in 1983 also. In the appraisal, it was listed at $700,000 with an estimate sales value of $500,000. It sold in July, 1990, for $225,000. The various scenarios are on the following schedules. The worse financial case is paying the asking price of $2,750,000 which would result in extra county cost of $2, 175,654 over a 20 year period. The on-going operational costs of comparing the two building options would never make the ARIX Building more attractive financially as you look at the operational costs at the end of 20 years. The difference in the initial costs between the ARIX Building and County structures is invested at 8.04% (current rate of ten year U.S. Treasury Bond) to factor in the cost of funds. Conclusion: Based upon the cost analysis, ignoring other factors cited in this report, the ARIX Building is only economical on a cost basis at a purchase price of $1,295,031. Anything over that amount would be a subsidy to Downtown Greeley from a business point of view. Even at that price, there will be the intangible loss of improved parking, decreased handicap accessibility, risk associated with being in a landlord relationship, restricted expansion capability in the future, loss of custom design, less flexibility to adapt to space needs (increase or decrease) , and the acquisition of an older structure with the potential of replacing the elevator, boiler, and roof in the next ten years. No economic value has been placed on these items listed. The option of building new structures on Block 63 is simply analyzed financially. The cost of the land would be the difference. The block cleared of buildings would well exceed a million plus dollars. Placing a structure or structures on the block would avoid building issues but still leave the parking issues and future expansion issues. The decision to weight these factors against the impact on Downtown Greeley is a political decision of the Board. Staff stands ready to make which ever choice of the Board work. S1.Or ncl COST ANALYSIS SCHEDULE A ASKING PRICE $2,750,000 GROSS SAVINGS - 20 YEAR LIFE CYCLE ARIX BUILDING BUILDING PURCHASE (1991) $2,750,000 REMODEL (1991) 846,875 OPERATING NET 1-10 YEAR (2,246) REMODEL (2001) 1,445,516 TOTAL COST 5,040, 145 COUNTY BUILDING PURCHASE (1991) 2,040,000 OPERATING NET 1-10 YEAR (869,549) BUILDING PURCHASE (2001) 2,670,000 TOTAL COST 3,840,451 NET SAVINGS TO COUNTY 1-10 YEAR 1,199,694 ARIX OPERATING 11-20 YEAR 3,564,489 COUNTY OPERATING 11-20 YEAR 2,588,529 NET COUNTY SAVINGS 11-20 YEAR 975,960 GROSS COUNTY SAVINGS 20 YEAR CYCLE $2,175,654 ASSUMPTIONS 1. Purchase ARIX building for $2,750,000. 2. County constructs 34,000 square foot building year one at $60.00/sq ft ($2,040,000) 3. Remodel ARIX year one for $846,875 (33875 sq ft @ $25/sq ft) 4. Remodel ARIX year eleven for $1,445,516 (39068 sq ft @ $37/sq ft) 5. 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SCHEDULE B DEBT REMAINING $2,300,000 GROSS SAVINGS - 20 YEAR LIFE CYCLE ARIX BUILDING BUILDING PURCHASE (1991) $2,300,000 REMODEL (1991) 846,875 OPERATING NET 1-10 YEAR (2,246) REMODEL (2001) 1,445,516 TOTAL COST 4,590,145 COUNTY BUILDING PURCHASE (1991) 2,040,000 OPERATING NET 1-10 YEAR (344,429) BUILDING PURCHASE (2001) 2,670,000 TOTAL COST 4,365,571 NET SAVINGS TO COUNTY 1-10 YEAR 224,574 ARIX OPERATING 11-20 YEAR 3,564,489 COUNTY OPERATING 11-20 YEAR 2,588,529 NET COUNTY SAVINGS 11-20 YEAR 975,960 GROSS COUNTY SAVINGS 20 YEAR CYCLE $1,200,534 ASSUMPTIONS 1. Purchase ARIX building for $2,300,000. 2. County constructs 34,000 square foot building year one at $60.00/sq ft ($2,040,000) 3. Remodel ARIX year one for $846,875 (33875 sq ft @ $25/sq ft) 4. Remodel ARIX year eleven for $1,445,516 (39068 sq ft @ $37/sq ft) 5. County constructs second building of 30000 sq ft year eleven at $89/sq ft ($2,670,000) 6. Operating expenses and construction costs grow at 4% per year. 7. 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CC CC F.,CC CC CC hn'Jt W a- Lai Ill cc - +Lai c La1 n_a nL0Lua{�—I¢-1 L.tLL CI.G3 t F- F. 6. ¢UZ W¢a+C^W T Cf Lr.. I— .- ll� er. La O CD CC la La.0:,b- CC1C Cr:=¢ O tLL O C O C w I- CC rl F.V:0 W C= -- If,0.F..•I C I- Z L. Li SCHEDULE C ASSESSED VALUE $1,962,694 GROSS SAVINGS - 20 YEAR LIFE CYCLE ARIX BUILDING BUILDING PURCHASE (1991) $1,962,694 REMODEL (1991) 846,875 OPERATING NET 1-10 YEAR (2,246) REMODEL (2001) 1,445,516 TOTAL COST 4,252,839 COUNTY BUILDING PURCHASE (1991) 2,040, 000 OPERATING NET 1-10 YEAR 49, 185 BUILDING PURCHASE (2001) 2,670,000 TOTAL COST 4, 759, 185 NET SAVINGS TO COUNTY 1-10 YEAR (506,346) ARIX OPERATING 11-20 YEAR 3,564,489 COUNTY OPERATING 11-20 YEAR 2,588,529 NET COUNTY SAVINGS 11-20 YEAR 975, 960 GROSS COUNTY SAVINGS 20 YEAR CYCLE $ 469, 614 ASSUMPTIONS 1. Purchase ARIX building for $1,962,694 (County Appraised Value) . 2. County constructs 34,000 square foot building year one at $60.00/sq ft ($2,040,000) 3. Remodel ARIX year one for $846,875 (33875 sq ft @ $25/sq ft) 4. Remodel ARIX year eleven for $1,445,516 (39068 sq ft @ $37/sq ft) 5. County constructs second building of 30000 sq ft year eleven at $89/sq ft ($2,670,000) 6. Operating expenses and construction costs grow at 4% per year. 7. Rental income grows at 4% per year. 8. County invests difference in initial investment of ARIX building vs. county building in 10 year treasury note at 8.04% (invests $769,569) . 91.05C)3 'i,"G!:-.;,0- G I-L• " • - " - r- T N. � C : h I: • 6, F. ; C r•44,4 "+LL r- is". t 4i 3 C� ii c n i c iL C L^ a r•.ti, C+! t N ! C li .. • f • I. • ! li _ - r 1 T " — . ?f�t11Cti L': I N : .- ii 7• . ; r in . !p• ...MV. r.. L.."N.C^1 L et c .fr • C u C` ii• =iG f. C9 1 c .! ^ r C Cv T C L CC N Li : r- ; co Ii T r.1 « N ...• C ' C i; j. V. 1 •0 i ... I 11 1 i 1 11 I is . ! .. 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II • • ' F. r4 C: . i I. ti .., r, ti.t.M lr : G -• •:i: f=. • :: T T • i N h f� r if,t.f� it ! 1. I N 1: ••• � In ^.[ti; r Clr r L'+ 1 Z. 1 r. 1 CJ 1 NH 1 1 1 L li ! !' i i I ti _ _ _ _ r. C� _ �C^f•:C Lam•' L u. t. ti5 C L' in e.:r, .- 1: L I!r Ir' h.w5 •• c N. A. I: �.: •It . n r .- C • C C C L' - " '' C r ff.: . c i O 1` f- r r ti f-c• i co t1 r- •�N CC — sG IL UL N N . fti !! }� ^ � Z- . .• 1: 77. — — 7 _ — — 7 — �. - -.- _ — f4 µ • •R - • •.• .,..;• ' ^ ti : CJ is. . .• :: . r• _ _ _ _ _ r: 4 - IA P1.4C en -J..": - i CJ : fr fl O n7 l', f,.T�,7%; h- I h : CJ t r • • _• •If =Ir' 101 04 c44%C*• S . fti fV l' } 1 '. i Cu 1 N II i I 1' i 1 I' i 1 1 II _ _ _ 0. C =r• r7::V. - - f 2" 7 - = fti . 11: !: I G•' rt.: - Nf •' _CZ • N ' CS 1' ! �(V !r T.� r C,R if, ! L4 is y • • r •t' 'T7 t. • ~++ : +V 1 Cu II .• 1• . P . 1 i1 1r ....rr, -Tf-CC' C S . ►1' CC,r, 1 T N " CC V'L'11% C• : f1' i f: II w • . 1. - ..y t, • , C,; I CS f 1 r t �'' I. r . i' _ R C I? F f='ir= ' =ir-i.--..:7;= ',`4 m L: 1 L'1 t' - Ln g `r ear� fV C2 f! i ..C, N. 17,L r L?4.L t fv : N l i Q: • : •1: C 04 I T.CU T N L7 l•.if. C : c i t 1! D. 1 ti N r' I•. - . - - - _ _ _ �.•7.. - - - _ . ,.. C4 m Cq T- C +l 1L =. a: L••i if •-• = r-.4 kr,iCr G IC.- IfT i, u" (r. �Q1 D. i cv , N t: 1 r 11 i• I I 11 C H. •. 4: 1 W i+; C .;.. :t `Ji ti d 1 .l LC. Y. ce 14 r r 6, N.. it t :h ..- ? — Id-E. e_ CC = C c 2 �� — U. W SL ==, V V SCHEDULED BREAKEVEN VALUE AT $25/SQ FT REMODEL COST GROSS SAVINGS - 20 YEAR LIFE CYCLE ARIX BUILDING BUILDING PURCHASE (1991) $1,747,000 REMODEL (1991) 846,875 OPERATING NET 1-10 YEAR (2,246) REMODEL (2001) 1,445,516 TOTAL COST 4,037,145 COUNTY BUILDING PURCHASE (1991) 2,040,000 OPERATING NET 1-10 YEAR 300,886 BUILDING PURCHASE (2001) 2,670,000 TOTAL COST 5,010,886 NET SAVINGS TO COUNTY 1-10 YEAR (973,741) ARIX OPERATING 11-20 YEAR 3,564,489 COUNTY OPERATING 11-20 YEAR 2,588,529 NET COUNTY SAVINGS 11-20 YEAR 975,960 GROSS COUNTY SAVINGS 20 YEAR CYCLE $ 2,219 ASSUMPTIONS 1. Purchase ARIX building for $1,747,000. 2. County constructs 34,000 square foot building year one at $60.00/sq ft ($2,040,000) 3. Remodel ARIX year one for $846,875 (33875 sq ft @ $25/sq ft) 4. Remodel ARIX year eleven for $1,445,516 (39068 sq ft @ $37/sq ft) 5. County constructs second building of 30000 sq ft year eleven at $89/sq ft ($2,670,000) 6. Operating expenses and construction costs grow at 4% per year. 7. Rental income grows at 4% per year. 8. County invests difference in initial investment of ARIX building vs. county building in 10 year treasury note at 8.04% (invests $553,875) . 91.0.21 � 0- G - - - - t _ _ 1 _ f- II CC Nt• ?tl P ti 1• I '.• f F ii ` rs - - ▪ s-CP' 17; i, L'' NI- --:. -At nI _ •-, .- - . Cu :1 v u ' 11 1 I. S _ III - - _ir t.- _ O. i. • 1 _ C P - I t I - - - 7- .7 - - G' - _ 2 N S N • :f _ - .. _ • 1: Z I I C _ " 2 L _ _ _ _ G _ •.Cti f` l r S G T - F _ < .,1( r_ L it r - - - 7. f. II = r v 11 i. r. "5 M1 V' L T G - i m 11 O M1 C .L F rG N 7 I PI II • ::. r -. - it t 7 v It • • . - _ -P ' L l' _ C It; G I C •• L• L IN • - N 7; T 4 i W7 .. D- 1 •• n 17 IL i 11 G C 77 f Cr: Cr: = i- (Y If L It W W t C G = G _ 1 L.,_1 W S a L D- = = LA t: b",7✓ U W Y. 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It .r X.I. .4 f",,: pm Cm fr. .0 i0 � 1 Cti I NN 1: ... r ✓- .... . t R 1. • .� n. i r.1 II • i , it i. • I i ll 71 _ r. C !1i C, C.ti..i` In fi ! i t! t Pi {. T r•••r C[, 1e X r • • a i .If 2 Ire 1 UN Cd •• C C..In IR 0 ' A'. I P? II • lr C, -+ P, I: B- i I fV • N 11 1 i v li • I it • . D _ n = i C ' r,.C =C'== =tr:C.OTC=9.2C ! If: t ill c - n'^ 0 c:f—T @ P7 ! Cy t Cti r. ! "C ►r T in ir.•10 cr i Cti 1 CJ li Cr • i •ii =N t ..N 7 f-Ire 0 lA C.7 ! 4 1 4 li }~ I ..ff• .r i f� • 11: .' ii r \+ 1: 1 ' i - r G - - C - :r?- L C _ :: I C .: in a,6 •1 w 1,i • C - c I, i !S 0:, CU ,%CT RI 4 C .l' s .1- t1 CC • •t 2.4 I If..•+ ffr f--+Iri IP C7 , in t N 11 .1.:-.. T fn .w Cr .. .. I r } i 1 C4 1 CL I 1 4' t: 1; i 1 . 1; C C C ..—. M IX CC L, L: '✓ G. r u. LC, CC X U. .. L'. C z .- L.I W lr• C W ti `: L.z z a �c x c¢ c c z►+ .y == • L =r I.. L• WI — Cti C .•t= Cg Ch •+ C ill.T. C. L v6— LO VI•.e } C4 d W d ih i..Z. ri Y C Co: DL 2:ii, CC: ••.CC ;-1 C r 6.CCLtCr—Z= L1 ,, •.Li: :—C: r-..r C1 F Le LL•.+Lc Co:Cy W Z LL .- ..iai CC i.iwr ..4134.:...1 CZ •Crr.L.W CC W. Wm r7 US liz La ice__.- =rco;z.`- - L; c c ri•r �- _"7..Lr.•1 LL_ I!.C►C.r'L - r 1.: 4 SCHEDULE E BREAKEVEN VALUE AT $30/SQ FT REMODEL GROSS SAVINGS - 20 YEAR LIFE CYCLE ARIX BUILDING BUILDING PURCHASE (1991) $1,460,031 REMODEL (1991) 1,016,250 OPERATING NET 1-10 YEAR (2,246) REMODEL (2001) 1, 718,992 TOTAL COST 4, 193, 027 COUNTY BUILDING PURCHASE (1991) 2,040,000 OPERATING NET 1-10 YEAR (438, 111) BUILDING PURCHASE (2001) 2, 670,000 TOTAL COST 5,148, 111 NET SAVINGS TO COUNTY 1-10 YEAR (955,084) ARIX OPERATING 11-20 YEAR 3,564,489 COUNTY OPERATING 11-20 YEAR 2,588,529 NET COUNTY SAVINGS 11-20 YEAR 975,960 GROSS COUNTY SAVINGS 20 YEAR CYCLE $ 20,876 ASSUMPTIONS 1. Purchase ARIX building for $1,460,031. 2. County constructs 34,000 square foot building year one at $60.00/sq ft ($2,040,000) 3. Remodel ARIX year one for $1,016,250 (33875 sq ft @ $30/sq ft) 4. Remodel ARIX year eleven for $1,718,992 (39068 sq ft @ $44/sq ft) 5. County constructs second building of 30000 sq ft year eleven at $89/sq ft ($2,670,000) 6. Operating expenses and construction costs grow at 4% per year. 7. Rental income grows at 4% per year. 8. County invests difference in initial investment of ARIX building vs. county building in 10 year treasury note at 8.04% (invests $436,281) . 4Dli� � ikm e% r, - - — r— � = i C _ it r,N — r4 — — t. u}isR f, . of i K+ It — . t aft C• -- ,T._ i C ir:•. CL P:C CJ R L i Cv I C II 03 I► e,, I. i .— . 1,J It T . to V' • i 11 _ _ A _ C. r.is r " r.r y+.. a _ - •• r..? V i4 N. Sr r C 11 S: .11 LT + L^ :1 Cr r n,C4 .Ti i N i C.} li J-▪ sri f I • l••I V 11 1 1 I li II i I I Il e. Cti 4% — LT r.. — CD =r'• V'C �•,C . C • 1" It C. PI C: :Li u5 Ai ice, s C. t TI: ;A. N co T r rr:. 'V Li L,C 7-1-7 ' r' tr. Il o • • • I • 1 •It ap 44, L? •+ CC. 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L: C — C..— — ='-:* : II,C•16 CC 17 C.C.r—L 1— 2 `.. ii SCHEDULE F ASKING PRICE $2,750,000 15 YEAR CONSTRUCTION OF SECOND BUILDING 15 YEAR MODEL GROSS SAVINGS - 20 YEAR LIFE CYCLE ARIX BUILDING BUILDING PURCHASE (1991) $2,750,000 REMODEL (1991) 846,875 OPERATING NET 1-10 YEAR (2,246) TOTAL COST 3,594,629 COUNTY BUILDING PURCHASE (1991) 2,040,000 OPERATING NET 1-10 YEAR (869,549) TOTAL COST 1,170,451 NET SAVINGS TO COUNTY 1-10 YEAR 2,424, 178 ARIX REMODEL (2006) 1,758,060 ARIX OPERATING 11-20 YEAR 1,629,646 TOTAL COST 3,387,706 BUILDING PURCHASE (2006) 3,240,000 COUNTY OPERATING 11-20 YEAR 460,770 TOTAL COST 3, 700, 770 NET COUNTY SAVINGS 11-20 YEAR (313,064) GROSS COUNTY SAVINGS 20 YEAR CYCLE $2,111, 114 ASSUMPTIONS 1. Purchase ARIX building for $2,800,000. 2. County constructs 34,000 square foot building year one at $60.00/sq ft ($2,040,000) 3. Remodel ARIX year one for $846,875 (33875 sq ft @ $25/sq ft) 4. Remodel ARIX year eleven for $1,758,060 (39068 sq ft @ $45/sq ft) 5. 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CZ C� r` i- V.•, r r.-:"V._ it w Z V.C.G.Ir r - Z U v UNITED PLAZA 9� UNITED PLAZA ANALYSIS In analyzing the United Plaza vs County facility, the operating costs appear to be comparable with the exception of elevator maintenance which is $3,985. County utility figures include water for more green area similar to the HRD Building. The United Plaza by its current design on the second, third, and fourth floor is laid out with individual and executive offices versus open space for the planned County use. This leaves two options: 1. Remodel those floors to create open space by removing the walls at an estimated cost of $20 - $25/square foot. Total added cost of $400,000 - $500,000. 2. Attempt to use the space as is in a less efficient way. A. This option would not allow the Clerk and Recorder to use the building. Motor Vehicle and Recording require the open space layout to function. B. The Assesor's Office with 38 people would require the entire second floor or over 6,000 square feet instead of the current 4,370 square feet. C. Planning and Building Inspection would require half of the third floor. Approximately 3,000 square feet is the same as currently used. D. Accounting, Personnel, GSA, and Purchasing would require the other second half of the third floor. Approximately 3,200 square feet is the same as currently used. E. The Finance, County Attorney, and County Commissioners would move to the fourth floor. F. Commissioners meeting room would be located on the north half of the first floor (39 X 68) . G. The south half of the first floor would be vacant or additional meeting area. The above moves would free up all of the Centennial Center's third floor, the Assessor's Office, and the first floor meeting room. This freed space could accommodate: 1. .Tail expanding into west half of third floor. 2. Relocation of DA auxiliary programs to east half of third floor. 3. Convert first floor meeting room to courtroom or county court clerical. 4. Convert Assessor's old area to law library or courtrooms. This arrangement splits the Assessor and Treasurer functions. To avoid this, the Treasurer could be moved to where Planning is scheduled to go. Then Planning could occupy the east half of the third floor Centennial Center and put the DA on the second floor. Use of the United Plaza is feasible, but not as optimum as design built space. The building is about 792 efficient. In the event the Board pursues the United Plaza building, it is suggested that an appraisal be done before offering any counter offer. The owners' offer of $2,200,000 with the donation of land still exceeds the Weld County Assessor's appraised value of $1,435,904 for the building by $764,096. r TENTH STREET INVESTORS P.O. BOX 1406 GREELEY, COLORADO 80632 (303) 356-6561 May 23, 1991 Don Warden Director of Finance and Administration Weld County P.O. Box 758 Greeley, Colorado 80632 Dear Mr. Warden : You will find attached a proposal from Tenth Street Investors offering to sell the United Plaza Building to Weld County. It is our understanding that your estimated space needs for the next ten to fifteen years are approximately 30, 000 square feet . The United Plaza Building contains 29 , 100 square feet . Although you have estimated the cost of constructing a new building to be approximately $60 . 00 per square foot, this figure is only an estimate. The United Plaza Building is a guaranteed price with no cost overruns and all parking, landscaping and lighting in place. The building is conveniently located close to your existing facilities, the post office and city hall. There would be no construction period as the building can be available for occupancy as needed. Movement of the county offices could be phased over a period of time or could occur all at once. The building is fully occupied, but leases are expiring and space in the building can be made available as required. Please give the attached proposal your serious consideration . Sincerely, B 72mn.av Norman M. Dean, Partner Tenth Street Investors 91.0,i n -)/ Proposal to Weld County from Tenth Street Investors 4t4/ c`-5t"-- May 23 , 1991 Tenth Street Investors, a joint venture consisting of Harry Asmus, Sara Asmus, Margaret Hume, The Honorable William West, Jerry Winters, Bonnie Dean and Norman Dean, proposes to sell to Weld County the four-story office building located at the southwest corner of the intersection at 11th Avenue and Tenth Street known as the United Plaza Building. Site Description The United Plaza site is a 47,834 square foot tract of commercial land. The legal description is the north 1/2 of lot 1 and all of lots 2 and 3, block 74, City of Greeley, Weld County, Colorado . Description of Building The building is a four-story, multi-tenant office building constructed in 1982 and occupied in 1983. It contains a gross enclosed area of 29 , 100 square feet . It is surrounded on the north and east by landscaping and walkways and on the west by an asphalt-paved parking lot. We believe the structural quality to be excellent, and it has been maintained in an excellent condition. The heating/ventilating and air conditioning systems all function efficiently and have been under contract for maintenance with Wyco, Inc . , 219 N. Summit View Dr . , Fort Collins, CO 80524, ( 303) 493-2121. The elevator was manufactured by the Otis Elevator Company and a maintenance contract with that company has been maintained. The central core of the building contains the elevator shaft as well as restrooms and a storage area on each floor. Other than that central core, all walls are removable, as electrical, telephone and HVAC are contained above a suspended ceiling. The foundation is made of reinforced, cast-in-place concrete walls resting on drilled piers ( caissons ) and grade beams. The structural walls are steel frame construction utilizing steel columns and beams. Exterior wall surfaces are faced with brick. The roof is flat consisting of 1-1/2" metal deck supported by steel beams and bar joists. It has a gravel surface over elastomeric roofing material, underlain by 1" rigid insulation. There is R-30 fiberglass batt insulation under deck. Drainage is by roof drains and downspouts and the roof is concealed by parapets. 21.05R3 R The ground level floor is a 4" cast-in-place concrete slab. Upper level floors consist of a steel floor pan topped with 3" of concrete and supported by steel beams and bar-joists . All exterior windows are of tempered, dual-pane glass mounted in bronze aluminum panes. Exterior doors are of similar construction. The main entry doors on the east and west sides of the building are automatically activated by sensors. The interior wall construction is drywall over steel studs and the lighting fixtures are recessed fluorescent fixtures . The restrooms as well as the entire building are accessible to handicapped. Availability Although the building is fully under lease at this time, space could be made available as needed. The ground floor containing over 6, 000 square feet is available immediately. The fourth floor containing almost 8, 000 square feet could be made available within a few months and the second and third floors containing approximately 15, 000 square feet would be available in 1992. If only a portion of the building were to be needed at once, present tenants would remain until additional space was needed, thus providing rental income which would more than cover the operating costs of the building. Parking One of the pressing needs of county offices is for adequate parking. The space immediately adjacent to the building contains 118 parking spaces . There is in addition a lot owned by United Bank of Greeley adjacent to this parking lot that contains 40 spaces which is not being utilized at the present time and could be made available. Location The building is strategically located in the downtown area. The main post office for the city is across the street to the north and City Hall is across the .street to the east. It is only one block west of the present county office building. Tenth Street is a one way street from the west providing easy access to the building and 11th Avenue is a main thoroughfare north and south also providing easy access to the site . Price The building was constructed in 1982 at a cost of $2 . 2 million representing a cost of $75 . 00 per square foot. This did not include the cost of the land which was $520,000 . Tenth Street Investors will sell the building to Weld County for $2. 2 million, exactly what the building cost to construct . It is doubtful that the building could be constructed today for that amount. The accounting firm of Anderson and Whitney can verify the figures quoted. Since one of the deterrents to building in the downtown area has been the cost of the land because the county has land available on the proposed site north of Greeley, Tenth Street Investors will donate the land to Weld County. The total cost of the land and building will be $2 . 2 million, the cost of the building alone. Tenth Street Investors are willing to make this contribution for several reasons. When the building was first constructed, tax laws made ownership of real estate attractive financially. The tax laws changed in 1986 making the ownership of real estate as an investment far less attractive . In addition, when the building was built, two of the investors owned a business that occupied the entire third floor . They have since sold that business. Another investor is now a resident of Wyoming. The space requirements of other investors have changed substantially during the years the building has been occupied. In addition, there is a potential income tax benefit through the donation of the land. Finally, there is a sincere desire on the part of the group to maintain a viable downtown area. It is our belief that a move of the offices from downtown would be counter-productive to the community' s effort and expenditure of money over the past several years to maintain an active downtown for the Weld County seat . We respectfully request your serious consideration of this proposal . We believe it represents the most prudent expenditure of Weld County taxpayers' dollars since it is doubtful that a building of this quality can be constructed for the price at which the United Plaza building is being offered and it becomes even more attractive when the building site and parking area will cost the county nothing. f 91. _z;2 ; TENTH STREET INVESTORS (A Joint Venture) STATEMENTS OF OPERATIONS Years Ended December 31 1990 1989 Revenue: Rent $ 352.737 S 332. 801 Expenses: Amortization 5,668 5,823 Depreciation 75,349 75,575 Insurance 3,494 2,989 Interest 154,845 170,574 Legal and accounting 2,760 3,046 Management fees and office expense 15,364 15,088 Property taxes 37,001 36,342 Repairs and maintenance 27,419 26 ,134 Trustee fees 27,394 28,090 Utilities 39.708 39,237 Total Expenses 389.002 402.898 NET LOSS $ (36, 265) $ (70,097) See Accompanying Notes to Financial Statements. 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I Ei r or GReeter - ---- --- -r . • p "' -. OFFICE OF THE MAYOR ry \ btity f V r' - �`" 100010TH STREET, GREELEY, COLORADO 80631 ` -Greeley May 22, 1991 Weld County Commissioners P.O. Box 758 Greeley, CO 80632 Dear Commissioners: The City Manager, at our meeting of May 21, 1991, reported on his conversations with Don Warden regarding the possibility of relocating certain county offices outside the downtown area. The Manager indicated he had made several suggestions on possible locations in the downtown area, possibly using property owned by the City of Greeley. We understand that you must consider the needs of the entire county and that you are being squeezed by the growth in the law and justice system. Nevertheless, we believe the county should not move the central county government operations outside the downtown. We believe further there are some reasonable cost options yet to be considered. The City and some downtown private property owners are ready to work with you to find a good location. The City will gladly cooperate to assure adequate parking is obtained. We urge you to study the impacts on the downtown, in which we have both invested heavily, carefully before a final decision is made. We suggest you delay, if necessary, to further investigate the alternatives. I and other members of the Council are available to discuss this matter further. lSiinceerely, tY\ William J. Morton Mayor Attachment Arm• g OFFICE OF THE CITY MANAGER Gfty of 1000 10TH STREET. GREELEY. COLORADO 80631 (303) 350-9770\ Greeley May 20, 1991 Don Warden Director of Finance and Administration Weld County P.O. Box 758 Greeley, CO 80632 Dear Don: Subsequent to our conversation, John Todd came to visit me and advised me he had also discussed with you the idea of using block 63 for the new county offices. His ideas and the thoughts I mentioned to you are very similar, although I had no idea his property would be available for the price he suggests. I am certain the City Council would be very supportive of working something out for all or part of block 63 . First, as John notes the city owns a sizeable portion of the block and I believe this could be made available to the County for either a building or parking (e.g. , some sort of property exchange as we discussed) . Second, the Austin property is in arrears in taxes and assessments and I think we could work out a way to acquire the property soon. Third, we would be willing to consider working out an arrangement for parking on the adjacent block 58 or perhaps that would be a better location for the new county building using block 63 for parking. Fourth, the City is currently making efforts to acquire the Union Pacific property east of block 63 part of which could be used for parking. Fifth, the City would consider acquiring all or part of the Todd property for public parking, e.g. , to replace lost parking or to provide additional parking for the county building. (I think we should consider not removing all the buildings because they might provide some covered parking at a reasonable cost. ) GREELEY Cited 9105(91 eu.wuivan Don Warden May 20, 1991 Page 2 To pursue this matter, I suggest we get together with John Todd and perhaps others to discuss and develop more specific possibilities. Also, I and other city staff are available to assist in gathering information and helping with the analysis of alternatives. Sincerely, adait Sgr Paul M. Grattet City Manager CC: John Todd Mayor and City Council ' WE E D O�t�TY GUTIERREZ AND KOPPES CO ':•"•SCS"'`ERS ATTORNEYS AT LAW y1m1 1.11 22 tai 37 912 EIGHTH AVENUE 77 GREELEY. CO. 8O631 CLERK 303.356.7158 TO THE 3QARD BMW L GUTIERREZ REBECCA A.BOPPES May 23, 1991 Commissioner Connie Harbert P.O. Box 758 Greeley, CO 80632 Dear Commissioner Harbert: Please be advised that I am a property owner, along with my business partner, Rebecca A. Koppes, of the property known as 912 Eighth Avenue and 914 Eighth Avenue, Greeley, Colorado. I was very disturbed when I read in the Greeley Tribune dated May 22, 1991 that the City of Greeley had offered my business in a trade with the County of Weld. I am somewhat confused as to how the City of Greeley can offer my private property to someone else. Please be advised that the two pieces of property owned by Gutierrez and Koppes, Attorneys at Law is not for sale. Gutierrez and Koppes has invested a tremendous amount of money in these two properties, and has no intention of selling the same. As you are aware, each piece of property is unique, and the property located at 912 and 914 Eighth Avenue is very unique, in that it is on Eighth Avenue and probably in the center of the business/commercial district in the City of Greeley. When my partner, Rebecca Koppes, and I purchased these two buildings, they were run down, and 912 Eighth Avenue was vacant. Gutierrez and Koppes came in and remodeled 912 Eighth Avenue and made it a productive and visually attractive part of Eighth Avenue. It has been my understanding, from the statements made by various county commissioners and city councilmen, that their goal was to keep businesses downtown and to try to fill all the vacant buildings and make the downtown viable as to productive businesses. The law office of Gutierrez and Koppes has accomplished that goal as to 912 and 914 Eighth Avenue. About a week and a half ago, I had a man called John Todd come into my office and request that I sell the property to him and, while I did not say that I would sell it, I did not say that I would not sell it. It has been my understanding that representations have been made that everybody on the block has agreed to sell except for me. I do not understand what type of representations have been made in that the property owners agreed to sell, when it's my understanding in my face-to-face conversations with some of them, that they do not intend to sell. Property May 23 , 1991 page 2 Please be advised that, should any questions arise as to what the intentions of Gutierrez and Koppes, Attorneys at Law in regard to 912 and 914 Eighth Avenue, it will be necessary to discuss the matter with Fred L. Gutierrez or Rebecca A. Koppes. No one in this world is authorized to speak for Fred L. Gutierrez or Rebecca A. Koppes. I have not authorized and do not authorize anyone to speak for me in relation to my business matters, and any person who represents to the County Commissioners or the City of Greeley to speak for me is a liar. I have not, and I have no intention of, authorizing anyone to speak for me in regard to my business affairs. Should the City Councilmen or the County Commissioners request my opinion or my position in the matter, or that of my business partner, Rebecca A. Koppes, I would suggest they contact me, personally or Rebecca A. Koppes. Again, I want to make it "perfectly clear" that no one in this world is authorized to make any representations regarding my, or my partner's, intent as to the selling or the not selling of 912 and 914 Eighth Avenue, Greeley, Colorado. A certain businessman and real estate developer in the City of Greeley, it is rumored, has gone around to various businesses on Eighth Avenue and advised them that, if they did not sell the property to him, he would condemn the property. While no one has conveyed to me the threat to condemn my property, I will take the position that, being a licensed attorney, I am fully capable of responding to any condemnation action brought against my private property. If it becomes necessary for me to take offensive action in this matter in order to protect my rights under the State of Colorado Constitution and the United States Constitution, I will do so. I have no intention of being deprived of my life, liberty and property so that some other private party can reap the benefits of my loss. I would suggest to the City of Greeley that, before they go offering private property in trades with other entities, they first should own the property that they are offering to trade. Please advise me of your intentions and suggestions in regard to my concerns as stated above. Please be advised that I am also a resident of the City of Greeley, I am a taxpayer of the City of Greeley, the County of Weld and the State of Colorado and I deserve the considerations and protection of the government also. Sincerely,/ 'f� Fred L. Gutierrez FLG/lbh 01.05I1 -• • • CERTIFICATE OF MAILING - I hereby certify that on this d2Aday of- May, 1991, a true and complete copy of the foregoing letter was placed in the U.S. Mail, postage prepaid to the following: Commissioner Gordon Lacy Councilman David Werking P.O. Box 758 City Hall Greeley, CO 80632 1000 Tenth Street Greeley, CO 80631 Commissioner George Kennedy P.O. Box 758 • Greeley, CO 80632 Commissioner Connie Harbert P.O. Box 758 Greeley, CO 80632 Commissioner Bill Kirley P.O. Box 758 Greeley, CO 80632 Commissioner Bill Webster P.O. Box 758 Greeley, CO 80632 William J. Morton City Hall 1000 Tenth Street Greeley, CO 80631 Councilman Ken Crumb City Hall 1000 Tenth Street Greeley, CO 80631 • Councilman Bernard. Kinnick City Hall 1000 Tenth Street Greeley, CO 80631 Councilwoman Nancy Brigden City Hall 1000 Tenth Street Greeley, CO 80631 . ! Councilman David Plasters City Hall • 1000 Tenth Street *64441- Greeley, CO 80631 Hello