<html xmlns:v="urn:schemas-microsoft-com:vml" xmlns:o="urn:schemas-microsoft-com:office:office" xmlns:w="urn:schemas-microsoft-com:office:word" xmlns:m="http://schemas.microsoft.com/office/2004/12/omml" xmlns="http://www.w3.org/TR/REC-html40"> <head> <meta http-equiv="Content-Type" content="text/html; charset=us-ascii"> <meta name="Generator" content="Microsoft Word 15 (filtered medium)"> <style></style> </head> <body lang="EN-US" link="blue" vlink="purple" style="word-wrap:break-word"> <div class="WordSection1"> <p class="MsoNormal">Dear Steve,<o:p></o:p></p> <p class="MsoNormal"><o:p> </o:p></p> <p class="MsoNormal">Thanks for you opinion on the 302 Arapahoe annexation.  I have attached the language below from the annexation agreement.  I am sure that you are aware that detailed site plans are often not complete at the time of annexation.  We also see with most all developments that the designs often change slightly when going through the entitlement process.  It may relate to requirements from Xcel, or a regulation around road requirements or emergency access or unexpected natural conditions.  When site designs are completed there can be impacts on unit design, size or even number of units.  With the clause below, it gives us a path forward to solve issues that arise.  <o:p></o:p></p> <p class="MsoNormal"><o:p> </o:p></p> <p class="MsoNormal">While you may be uncomfortable with the word equivalent and how it plays out in this agreement, it clearly defines that the community will still receive on-site affordable housing.  I also trust our City Manager and trust that she will be able to properly use good judgement to ensure we receive an equivalent community benefit for minor adjustments.  It is also important to recognize that if the City Manager does not believe a change is equivalent, they can deny a change and require that an amendment to the annexation would go back through Planning Board and City Council.<o:p></o:p></p> <p class="MsoNormal"><o:p> </o:p></p> <p class="MsoNormal">Thanks for sharing your concerns,<o:p></o:p></p> <p class="MsoNormal"><o:p> </o:p></p> <p class="MsoNormal">Kurt<o:p></o:p></p> <p class="MsoNormal"><o:p> </o:p></p> <p class="MsoListParagraph" style="mso-margin-top-alt:0in;margin-right:54.75pt;margin-bottom:0in;margin-left:120.05pt;margin-bottom:.0001pt;text-indent:-.25in;mso-list:l0 level1 lfo1"> <![if !supportLists]><span style="font-size:11.5pt;letter-spacing:-.1pt"><span style="mso-list:Ignore">a)<span style="font:7.0pt "Times New Roman"">     </span></span></span><![endif]><i><u><span style="font-size:12.0pt">Modification of Affordable Housing.</span></u></i><i><span style="font-size:12.0pt"> <a name="_Hlk105487270">The Applicant and the City Manager, or her delegate, may agree to modify the requirements set forth in this Paragraph18 provided that the City Manager finds the proposed development would provide an affordable housing benefit that provides a community benefit at<span style="color:black"> least equivalent to the housing benefit provided by the Affordable Units required herein. </span></a><span style="color:black"> The City Manager may not accept cash-in-lieu to satisfy the requirement for any</span> of the on-site Affordable Units required under this Agreement<span style="color:black">.</span><o:p></o:p></span></i></p> <p class="MsoNormal"><o:p> </o:p></p> <p class="MsoNormal"><o:p> </o:p></p> <div> <div style="border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0in 0in 0in"> <p class="MsoNormal"><b>From:</b> Stephen Pomerance <stevepomerance@me.com> <br> <b>Sent:</b> Tuesday, June 21, 2022 10:32 AM<br> <b>To:</b> Firnhaber, Kurt <FirnhaberK@bouldercolorado.gov><br> <b>Cc:</b> Wallach, Mark <WallachM@bouldercolorado.gov>; HOTLINE <HOTLINE@bouldercolorado.gov>; Sugnet, Jay <SugnetJ@bouldercolorado.gov>; Council <council@bouldercolorado.gov>; Allen, Michelle <AllenM@bouldercolorado.gov>; boulderplanningboard <boulderplanningboard@bouldercolorado.gov>; Brockett, Aaron <brocketta@bouldercolorado.gov>; Friend, Rachel <friendr@bouldercolorado.gov><br> <b>Subject:</b> Re: [BoulderCouncilHotline] Annexation of 302,334 Arapahoe<o:p></o:p></p> </div> </div> <p class="MsoNormal"><o:p> </o:p></p> <div style="border:dotted #003333 1.0pt;padding:2.0pt 2.0pt 2.0pt 2.0pt"> <p class="MsoNormal" style="background:aqua"><b><span style="font-size:12.0pt;font-family:"Arial",sans-serif;color:black">External Sender</span></b><span style="color:black"> </span><o:p></o:p></p> </div> <div> <p class="MsoNormal">Hi Kurt,  <o:p></o:p></p> <div> <p class="MsoNormal"><o:p> </o:p></p> <div> <p class="MsoNormal">As a former council member, I would <b><u><span style="color:#FF2600">never</span></u></b> have voted to approve an Annexation Agreement with such unnecessarily fuzzy language as “equivalent” in it.<o:p></o:p></p> </div> <div> <p class="MsoNormal"><o:p> </o:p></p> </div> <div> <p class="MsoNormal">Why not just negotiate with the property owner/developer what they will do that is what the City wants and then put that in the AA? For example, the size of the units, number of bedrooms, prices, etc., should all be in it.<o:p></o:p></p> </div> <div> <p class="MsoNormal"><o:p> </o:p></p> </div> <div> <p class="MsoNormal">You have all the time in the world to do this. You have no obligation to operate on the developer’s time line.<o:p></o:p></p> </div> <div> <p class="MsoNormal"><o:p> </o:p></p> </div> <div> <p class="MsoNormal">Annexation is a legislative matter, and so the City can ask for what it wants/needs.<o:p></o:p></p> </div> <div> <p class="MsoNormal"><o:p> </o:p></p> </div> <div> <p class="MsoNormal">So take the time and get what you want, and have a bullet-proof agreement that guarantees you will get it.<o:p></o:p></p> </div> <div> <p class="MsoNormal"><o:p> </o:p></p> </div> <div> <p class="MsoNormal">This “equivalent” language is completely unnecessary. It allows too much flexibility, and so puts the CM in an impossible position. And it just creates more room for nonsense to happen.<o:p></o:p></p> </div> <div> <p class="MsoNormal"><o:p> </o:p></p> </div> <div> <p class="MsoNormal">Steve Pomerance<o:p></o:p></p> </div> <div> <p class="MsoNormal"><o:p> </o:p></p> </div> <div> <p class="MsoNormal"><o:p> </o:p></p> <div> <p class="MsoNormal"><br> <br> <o:p></o:p></p> <blockquote style="margin-top:5.0pt;margin-bottom:5.0pt"> <div> <p class="MsoNormal">On Jun 21, 2022, at 6:36 AM, Firnhaber, Kurt <<a href="mailto:FirnhaberK@bouldercolorado.gov">FirnhaberK@bouldercolorado.gov</a>> wrote:<o:p></o:p></p> </div> <p class="MsoNormal"><o:p> </o:p></p> <div> <div> <p class="MsoNormal">Dear Mark,<span style="font-size:12.0pt"><o:p></o:p></span></p> </div> <div> <p class="MsoNormal"> <span style="font-size:12.0pt"><o:p></o:p></span></p> </div> <div> <p class="MsoNormal" style="background:white"><span style="color:black">I am replying to your question on if the developer can, in the future, substitute on-site affordable units with cash-in-lieu (CIL)?<span class="apple-converted-space"> </span></span><span style="color:#212121">As per the annexation agreement, the units must be provided on-site. The Planning Board (PB) discussed their concerned that the clause in the annexation agreement that allows the city manager to approve an alternative outcome as long as it provides equivalent community benefit, would allow the city manager to approve CIL. While CIL is not considered an equivalent, the PB made an amendment to the agreement language specifying that the city manager could modify the affordable housing benefit with the exception of allowing CIL.</span><span style="font-size:12.0pt"><o:p></o:p></span></p> </div> <div> <p class="MsoNormal" style="background:white"><span style="color:#212121"> </span><span style="font-size:12.0pt"><o:p></o:p></span></p> </div> <div> <p class="MsoNormal" style="background:white"><span style="color:#212121">I hope that this answers your concern,</span><span style="font-size:12.0pt"><o:p></o:p></span></p> </div> <div> <p class="MsoNormal" style="background:white"><span style="color:#212121"> </span><span style="font-size:12.0pt"><o:p></o:p></span></p> </div> <div> <p class="MsoNormal" style="background:white"><span style="color:#212121">Kurt</span><span style="font-size:12.0pt"><o:p></o:p></span></p> </div> <div> <p class="MsoNormal" style="background:white"><span style="color:#212121"> </span><span style="font-size:12.0pt"><o:p></o:p></span></p> </div> <div> <p class="MsoNormal"> <span style="font-size:12.0pt"><o:p></o:p></span></p> </div> <div> <p class="MsoNormal"><b><span lang="EN" style="font-size:10.0pt;font-family:"Arial",sans-serif">Kurt Firnhaber<br> Director of Housing and Human Services</span></b><span style="font-size:12.0pt"><o:p></o:p></span></p> </div> <div> <p class="MsoNormal"><span lang="EN" style="font-size:10.0pt;font-family:"Arial",sans-serif"><image001.png></span><span style="font-size:12.0pt"><o:p></o:p></span></p> </div> <div> <p class="MsoNormal"><span lang="EN" style="font-size:10.0pt;font-family:"Arial",sans-serif">O: # 303-441-4424<br> C: # 303-917-0914<br> </span><a href="mailto:FirnhaberK@bouldercolorado.gov"><span lang="EN" style="font-size:10.0pt;font-family:"Arial",sans-serif">FirnhaberK@bouldercolorado.gov</span></a><span style="font-size:12.0pt"><o:p></o:p></span></p> </div> <div> <p class="MsoNormal"><span lang="EN" style="font-size:10.0pt;font-family:"Arial",sans-serif">Department of Housing & Human Services<br> 1300 Canyon Blvd  Boulder, CO 80302</span><span style="font-size:12.0pt"><o:p></o:p></span></p> </div> <div> <p class="MsoNormal"><a href="https://gcc02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.bouldercolorado.gov%2F&data=05%7C01%7Cfirnhaberk%40bouldercolorado.gov%7C7f1e3c94dac44692734608da53a39479%7C0a7f94bb40af4edcafad2c1af27bc0f3%7C0%7C0%7C637914259318596353%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&sdata=s0CFlO0I2654TVXHd1wlErLek2wTX8x%2BVqm7aBzlRKQ%3D&reserved=0"><span lang="EN" style="font-size:10.0pt;font-family:"Arial",sans-serif">Bouldercolorado.gov</span></a><span style="font-size:12.0pt"><o:p></o:p></span></p> </div> <div> <p class="MsoNormal"> <span style="font-size:12.0pt"><o:p></o:p></span></p> </div> <div> <p class="MsoNormal"> <span style="font-size:12.0pt"><o:p></o:p></span></p> </div> <div> <p class="MsoNormal" style="background:white"><span style="color:#212121"> </span><span style="font-size:12.0pt"><o:p></o:p></span></p> </div> <div> <p class="MsoNormal"> <span style="font-size:12.0pt"><o:p></o:p></span></p> </div> <div> <p class="MsoNormal"> <span style="font-size:12.0pt"><o:p></o:p></span></p> </div> <div> <div style="border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0in 0in 0in"> <div> <p class="MsoNormal"><b>From:</b><span class="apple-converted-space"> </span>Wallach, Mark <<a href="mailto:wallachm@bouldercolorado.gov">wallachm@bouldercolorado.gov</a>><span class="apple-converted-space"> </span><br> <b>Sent:</b><span class="apple-converted-space"> </span>Sunday, June 19, 2022 12:49 PM<br> <b>To:</b><span class="apple-converted-space"> </span>HOTLINE <<a href="mailto:HOTLINE@bouldercolorado.gov">HOTLINE@bouldercolorado.gov</a>><br> <b>Cc:</b><span class="apple-converted-space"> </span>Council <<a href="mailto:council@bouldercolorado.gov">council@bouldercolorado.gov</a>><br> <b>Subject:</b><span class="apple-converted-space"> </span>Annexation of 302,334 Arapahoe<span style="font-size:12.0pt"><o:p></o:p></span></p> </div> </div> </div> <div> <p class="MsoNormal"><span style="font-size:12.0pt"> <o:p></o:p></span></p> </div> <div> <p class="MsoNormal"><span style="font-size:12.0pt">In the staff memo (p.3), it is stated that the developer wishes to retain the option of requesting cash-in-lieu to fulfill his community benefit obligations, yet on p. 32 of the annexation agreement the developer acknowledges, without qualification, that cash-in-lieu is not an available option and that the 5 affordable units will be built to the specifications provided in that document. Please be prepared to explain the discrepancy, as the annexation agreement has already been executed, and the Planning Board unanimously  suggested that there be a clear obligation to provide the on-site, deed restricted housing.<o:p></o:p></span></p> </div> <div> <p class="MsoNormal"><span style="font-size:12.0pt"> <o:p></o:p></span></p> </div> <div> <p class="MsoNormal"><span style="font-size:12.0pt">BTW, what would be the cash-in-lieu payment required for these 5 units? I inquire, because it is likely that 5 additional market rate units of 3,300 square feet are likely to sell at anywhere from $2.5-3.5MM, for total additional revenue to the developer of $12.5MM-17.0MM. That is a lot of additional revenue and profit, and if the option exists, it is more than possible that the cash-in-lieu option will be exercised. It seems to me that the executed annexation agreement should control. What is the argument for giving the developer the cash-in-lieu option and not following the suggestion of the Planning Board?<o:p></o:p></span></p> </div> <p class="MsoNormal"><span style="font-size:10.5pt;font-family:"ArialMT",serif">_______________________________________________<br> bouldercouncilhotline mailing list<br> </span><a href="mailto:bouldercouncilhotline@list.ci.boulder.co.us"><span style="font-size:10.5pt;font-family:"ArialMT",serif">bouldercouncilhotline@list.ci.boulder.co.us</span></a><span style="font-size:10.5pt;font-family:"ArialMT",serif"><br> </span><a href="https://gcc02.safelinks.protection.outlook.com/?url=https%3A%2F%2Flist.bouldercolorado.gov%2Fmailman%2Flistinfo%2Fbouldercouncilhotline&data=05%7C01%7Cfirnhaberk%40bouldercolorado.gov%7C7f1e3c94dac44692734608da53a39479%7C0a7f94bb40af4edcafad2c1af27bc0f3%7C0%7C0%7C637914259318596353%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&sdata=CeQnAfBKriiHU2faLj7s5Ul9ztGm%2FlkQzLhGU57OPOo%3D&reserved=0"><span style="font-size:10.5pt;font-family:"ArialMT",serif">https://webappsprod.bouldercolorado.gov/mailing-lists/mailman-archive/bouldercouncilhotline</span></a><span style="font-size:10.5pt;font-family:"ArialMT",serif"><br> Do not reply to this message with unsubscription requests.<br> To unsubscribe from this list or subscribe to other City of Boulder lists:<br> </span><a href="https://gcc02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fbouldercolorado.gov%2Fnewsroom%2Fcity-of-boulder-email-lists&data=05%7C01%7Cfirnhaberk%40bouldercolorado.gov%7C7f1e3c94dac44692734608da53a39479%7C0a7f94bb40af4edcafad2c1af27bc0f3%7C0%7C0%7C637914259318596353%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&sdata=w6MIwikcTvVydw4BjNXm3E7%2BE5xYRYCQa8Bx1Fcf1%2BE%3D&reserved=0"><span style="font-size:10.5pt;font-family:"ArialMT",serif">https://bouldercolorado.gov/newsroom/city-of-boulder-email-lists</span></a><o:p></o:p></p> </div> </blockquote> </div> <p class="MsoNormal"><o:p> </o:p></p> </div> </div> </div> </div> </body> </html>