HomeMy WebLinkAboutMINUTES Town Board Special Meeting 2014-01-06Town of Estes Park, Larimer County, Colorado, January 6, 2014
Minutes of a Special meeting of the Board of Trustees of the Town of Estes
Park, Larimer County, Colorado. Meeting held in the Town Hall in said Town
of Estes Park on the 6th day of January, 2014.
Present:
Also Present:
William C. Pinkham, Mayor
Eric Blackhurst, Mayor Pro Tem
Trustees Mark Elrod
John Ericson
Wendy Koenig
Ron Norris
John Phipps
Frank Lancaster, Town Administrator
Greg White, Town Attorney
Jackie Williamson, Town Clerk
Absent: None
PRESENTATION/DISCUSSION ITEM:
1. CONTRACT FOR SALE OF LOT, 4 STANLEY HISTORIC DISTRICT FOR
THE ANSCHUTZ WELLNESS CENTER. Brian Herwig/Chief Executive Officer
for the Hospital stated Estes Park Medical Center (EPMC) has received the
support of the hospital board to provide funding for the purchase of Lot 4 and
raise the funds necessary to build a Wellness Center on the Lot 4. The project
would provide a new revenue source to help sustain the hospital, bring new
clientele to Estes Park seeking destination wellness, and the hospital staff
would receive training to provide better care at the hospital and the new
Community Wellness Center. The funding provided to help purchase Lot 4
would guarantee the hospital a long term ground lease with Grand Heritage for
the Wellness Center. Grand Heritage in turn would provide all to the
maintenance of the outside of the building with the hospital to maintain the
interior of the building. The hospital would coordinate with the other medical
facilities in town (Salud and Timberline) to provide services at the new
Community Wellness Center. In addition the new facility would not compete
with the local athletic clubs as it would provide high level executive physicals.
Dr. Frank Dumont/Chief of Staff stated the medical staff supports the project.
He reaffirmed the knowledge learned would be transferred into the other
hospital facilities and the Community Wellness Center.
Dr. James Hill/Executive Director of the Anschutz Health and Wellness Center
at Colorado University, Boulder Campus presented the Board with an overview
of the program including over 100 researchers working to understand disease
prevention and wellness. He stated the center would be a global brand for
health and wellness and bring the best wellness programs to Estes Park.
Anschutz Wellness program would bring their program content, staff and talent
to the Wellness Center to develop a world class facility.
Lucia Liley/Grand Heritage and the Stanley Hotel representative reviewed the
new proposal stating the property would have three components including a
long term ground lease with the hospital for a Wellness Center and a restricted
use covenant placed on that portion of land to restrict its use to a Wellness
Center, other hotel components owned and managed by Grand Heritage, and
approximately one-third of the property as open space per the Stanley Historic
District Master Plan. The purchase price for Lot 4 would be $1.325 million if
the Hospital District begins construction within two years, i.e. pulling a building
Board of Trustees — January 6, 2014 — Page 2
permit or $1.65 million if Grand Heritage builds the Wellness Center.
Contingencies for the proposal include a due diligence period of 60 days in
which Grand Heritage can walk away from the contract, approval of the sale of
the property, Town Board approval of all land use related actions for the
project: subdivision amendment, rezoning, use classification, ordinance
amending Stanley Historic District standards outlined in the Municipal Code,
development plan and special review, and final approval and expiration of all
timeframes for legal challenges by a third party. Closing would take place 10
days after all contingencies have been met.
Board comments/questions have been summarized as follows: remove the
parentheticals from 2(k); would the hospital own the land upon which the
Wellness Center would be located; the contract language outlining the
purchase is unclear; the parties of the contract should be clearly identified as
the Town of Estes Park and Grand Heritage; questioned the legal issues that
may surround the land use approvals; questioned the number of new jobs
created and the type of jobs created; the restricted use covenant should clearly
outline what a Wellness Center would be to ensure its use now and in the
future; would the Anschutz group have an agreement with the hospital outlining
the programming and marketing; requested the language under 3(c)
Promissory Note and 6(b) Final Approval be reworded to limit confusion; the
exhibit should be more detailed to provide additional labeling and dimensions;
questioned if a deed of trust would be issued; should the Town approve a
restrictive covenant limiting the use of the property; and add the three
conditions initiated ordinance, referendum and third party challenge to 6(b)
Final Approval.
Ms. Liley stated the property would be owned by Grand Heritage with a long
term ground lease between Grand Heritage and the Hospital District. The
additional funding would bridge the gap in financing needed to complete the
purchase. The reduced price of the property is due to the hospital receiving all
profits from the center and Grand Heritage supplying $200,000 in maintenance
and marketing annually. Mr. Cullen stated the hotel would need an additional
30 to 40 staff to operate the new facilities with a portion of those located off
property to complete marketing and ecommerce efforts. The Medical Center
would add approximately 24 to 36 employees with salaries 80-90% above the
median income. The new revenue is estimated at $220,000 in sales tax and
property tax to the Town and a total of approximately $600,000 to the
community as a whole. Mr. Cullen stated he is committed to developing a
Wellness Center and if it cannot be developed the property would be left as
open space.
Those speaking in favor of the proposed contract for Lot 4 included Sherry
Ruth/Town citizen, Greg Rosener/Town citizen, Howard Lauren/Town citizen,
Linda Wagner/Town citizen, Jim Cope/Town citizen, Ron Wilcocks/County
citizen, and Jon Nicholas/Town citizen. The tourist and not the locals support
the economy and shop downtown, therefore, the community must attract more
affluent tourist who would purchase luxury goods and increase sales tax
receipts; the Town needs funding to rebuild the community after the flood; Lot
4 is situated between two commercial properties and is a viable location for a
Wellness Center; Estes Park is surrounded by federally protected open space
land and Lot 4 is a prime commercial lot; the project meets the criteria by
Downtown Development Inc. and those of the Economic Development Council;
the property has not been managed as open space in the past and should be
developed; request the Board assure the contract is solid and send it to the
voters for their consideration; the community needs jobs, to retain families, a
year round economy to compete with other tourist communities, good paying
jobs, and clean industry; new jobs and industry would help meet the
communities economic goals; and the Stanley Hotel was built by F.O. Stanley
originally as a wellness center.
Board of Trustees — January 6, 2014 — Page 3
Those speaking against the proposed contract for Lot 4 included Tom
Gootz/Town citizen, Chris Reveley/Town citizen, Johanna Darden/Town citizen,
and Eric Waples/Town citizen. Comments have been summarized as follows:
the Town should adopt a policy on how to delineate which properties should be
sold before moving forward with this sale; open space was outlined as
important by the citizens through the last citizen survey; this property is an
important view corridor, wildlife habitat and buffer between the residential and
commercial uses; additional information should be provided on how many jobs,
taxation, non-profit status of the new center and effects on sales tax; clearly
define a Wellness Center and conduct a feasibility study before moving
forward; requested the Town embrace the Community Wellness Center and/or
a Performing Art Center instead of the current proposal; commented the
current proposed development is half again the size of the development
brought forward in 2006 and changes to the development code and Master
Plan are needed for the proposal; and the current Friends of Lot 4 consider
open space around the Stanley Hotel as essential.
Rebecca Urquhart/Town citizen spoke to the contract stating the contract does
not address what would happen to the property if the Wellness Center fails.
The approval of the contract would lead to an expansion of the Stanley Hotel
immediately with a two plus year gap before the new center and jobs would be
added to the community. The use covenant should clearly outline what could
be included in the center. The agreement should reserve the right of the Town
to repurchase the lot if the center does not get built. The public should be
made aware that public funds would be decreased if the Hospital District
remains a partner in the development of the Wellness Center.
Jon Nicholas/Town citizen stated the original Stanley Historic District Master
Plan was not developed to promote open space but to preserve and protect the
economic viability of the Stanley Hotel. The original Issue Committee Friends
of Stanley Lot 4 was formed to place proposals in front of the voters and not to
maintain Lot 4 as open space.
2. ACTION ITEMS:
1. REQUEST TO ENTER EXECUTIVE SESSION:
It was moved and seconded (Blackhurst/Norris) to enter into Executive
Session for the purpose of determining positions relative to matters that
may be subject to negotiations, developing strategy for negotiations,
and/or instructing negotiators, under C.R.S. Section 24-6-402(4)(e), and it
passed unanimously.
Whereupon Mayor Pinkham adjourned the meeting to Executive Session at
6:22 p.m. and called for a ten minute break.
Mayor Pinkham reconvened the meeting to open session at 7:15 p.m.
2. ORDINANCE #01-14 APPROVING THE CONTRACT FOR THE SALE OF
LOT 4, STANLEY HISTORIC DISTRICT FOR THE ANSCHUTZ WELLNESS
CENTER. Attorney White stated the Board would consider a contract with the
following changes: add a definition of a Wellness Center, remove the
parentheticals to 2(k), rewrite 3(c) the promissory note language, 6(b) updated
to state all land use approvals shall be completed by March 11th and three
reasons the closing could be extended include initiated ordinance, referendum
or third party litigation, add new Wellness Center definition to the use
covenant, and extend the signature of the contract to 4:00 p.m. on Friday,
January 10, 2014. Mr. Cullen agreed to the changes outlined. Attorney White
read Ordinance #01-14. It was moved and seconded (Blackhurst/Koenig) to
approve Ordinance #01-14, and it passed unanimously.
Board of Trustees - January 6, 2014 - Page 4
Whereupon Mayor Pinkham adjourned the meting at 7:20 p.m.
am C. Pinkham, Mayor
a kie Williamson, Town Clerk