What is happening in downtown Greeley? There are a lot of changes in the works—including a new fire station, downtown hotel and relocation of City government offices.
Funding for the projects will come from Certificates of Participation (COPs). Here’s how this type of funding works: Instead of buying a bond, investors actually purchase a piece of the building and property. Each year, the city makes payments and purchases a portion of the building and property. After 20 years, ownership of the building transfers to the City of Greeley. This isn’t debt or a tax increase, which would need voter approval, for three important reasons:
The City successfully used this form of financing on two other occasions: acquisition and construction of Boomerang Links golf course and irrigation improvements at Highland Hills Golf Course, as well as construction of the Events Center at Island Grove Park.
The City has been actively engaged in the redevelopment of Greeley’s downtown. One aspect was the development of the new hotel and conference center in a prime location that made sense for significant economic improvement for our downtown. At the same time, the City analyzed the number and types of buildings occupied by City administrative offices. If City offices could be reasonably combined, surplus buildings or the space they occupy could be made available for various private redevelopments such as a hotel with conference space.
In 2015, the City issued a “Request for Proposals” for one of the surplus City buildings (Lincoln Park Annex block). This request attracted some strong proposals. After analysis of the proposals and discussions with the developer, the architect and others, it was decided to pursue a development agreement. That agreement was finalized by a city council vote on April 5, 2016.
With the signing of that agreement, a number of projects within the bigger downtown development and City office location picture have come together—meaning that City offices were moved to temporary quarters so that the block could be used for the hotel and conference center construction.
DOWNTOWN HOTEL & CONFERENCE CENTERConstruction completed - Open for business: September 2017
Hotel Franchise: Hilton/DoubleTree
Hotel Operator: Providence Hospitality
• 147-room hotel w/14,000 sf conference center
• Full service restaurant; 24-hr room service
• Adjacent parking - 195+ spaces (north half of block)
• Indoor pool, ballroom/meeting rooms, fitness room
• $31M construction investment; $44.3M total cost
• City leases south half of LPA site to Developer for 60 yrs. + possible 10 yr. extensions
• City receives .8% lease revenues annually; $80,000 in year 6, growing thereafter
• City clears north half of block for parking (195+ spaces; hotel manages); some public parking
• DDA provides $1.5M to match City Parking Fund of $900,000 for parking lot
Tax Increment Financing (TIF) district - property taxes generated from new use foster redevelopment
• City advances the hotel $8.638M from TIF revenues
- 2.6% interest rate, netting ROI of $11.3 million by year 13
- Developer pays a guaranteed minimum
• Converts an obsolete building with $1.5M in liabilities into a tax-producing asset
• High quality use/operator consistent with DDA, Visit Greeley (Chamber of Commerce), and City government priorities
• Adds large conference space venue; will compete favorably in region; limits regional leakage
• Provides an economic asset with a strong multiplier effect
• City’s support yields a favorable ROI via sales and property tax, as well as permits and fees
- Initial taxes & fees for development = $807,304
City funds secured with broad base of taxes and fees from project (priority debt repayment).
With so much progress being made on the hotel project planned for the Lincoln Park Annex block, it became apparent that the City’s office consolidation plans must be accelerated along with plans for a new fire station. The City intends to move City Hall from its current location within the next few years combining several administrative office and City Council space needs into one Municipal Campus on the same block as the City Hall Annex (1100 10th Street). The City has acquired land on that block in order to build a complex to consolidate the five separate downtown City Office buildings into a single campus and replace the old Fire Station #1.
There are several advantages to this. First is the customer service improvement that residents and others will experience by only having to visit one location to take care of City government business. It will also help the City modernize technology and work space proximity which gives employees better interaction and equipment for enhanced efficiency. The move will also free up a significant amount of downtown real estate to allow for private development, such as the new hotel and conference center.
Phase I of the building, now under construction, will house Municipal Court, the IT Department, Council's Chambers, GTV8, central records storage and the Water and Sewer department administrative offices.A possible City Center Phase II could include all remaining offices currently located in City Hall and the City Hall Annex.
CITY CENTER PROJECT
• Greater efficiency among City offices
• Better opportunities for shared staff functions
• Better customer service
• Cost avoidance: maintenance backlog - $7.4M among 4 existing buildings
• Design a new City complex in stages, if needed
• Consolidate downtown administrative offices
• Sell or lease surplus City buildings for redevelopment
• Acquire properties - City acquired 4 properties on the City Hall Annex block
• Downtown Safeway store - corporate decision to close; can’t be reused as a grocery. Vacant over a year and no other private interest and growing nuisance concerns; City acquired site
• Planning - City contracted with an architectural firm to refine office space plan and develop design concepts for new City Center campus building
• Moves - City offices/operations at Lincoln Park Annex moved into temporary facilities in support of hotel development prior to City Center construction (18 mo. to 2 yrs.)• Groundbreaking and Construction - a groundbreaking event was held on March 31, 2017. Construction has begun for Phase I of the City Center Municipal Campus.
• Carry Over Funds - Land purchases, building demo & architectural services funded from one-time unexpected revenues
• City Center Phase I - Fire Station #1, Municipal Court, Council Chambers, GTV8, IT, storage and the Water and Sewer department administrative offices - ($27M) reserved from available Certificates of Participation. See financing details.
This property was purchased to create temporary space for City offices while the first phase of the new City Center (City Hall) is being constructed.
This block is also the new location for Fire Station #1. Construction was completed in Fall 2017 with a ribbon cutting on August 18.
City Center Live Feed
City Center Phase I construction live images (updates every 30 minutes) and time lapse video.
Privacy and Security | ADA Policy | Contact Us | © City of Greeley 1000 10th Street Greeley, Colorado 80631 all rights reserved