Redtail Ridge Final Plat Passed Despite Riskier Financial Agreement

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FOR IMMEDIATE RELEASE
Louisville, CO
August 21, 2024

Contacts: Sherry Sommer, Tamar Krantz, Dana Bove

REDTAIL RIDGE FINAL PLAT PASSED DESPITE RISKIER FINANCIAL AGREEMENT

On Tuesday night, the Louisville city council voted 5-1 to approve the Redtail Ridge Subdivision Plat with 9 conditions. Councilmember Hamlington voted no after expressing discomfort with changes to the proposed financial guarantee offered by the developer. “I have a responsibility to make sound financial decisions on behalf of the city. I am not certain that I feel confident in the proposed financing before us tonight without consulting outside counsel ourselves who have expertise in this area.”

Fourteen members of the public spoke up at the meeting– eleven expressed concerns about approval. Concern about the change to the terms to the financial guarantee between the preliminary and final subdivision plat agreements was a common theme.

Between the preliminary and final plat hearings, the financial guarantee terms were changed. According to the staff memo, “the City’s standard SIA requires a financial surety in the form of a letter of credit from the developer that the City can use to complete the infrastructure if the developer defaults on the agreement. Instead of providing a letter of credit, the applicant’s proposal is to use bond proceeds from the Redtail Ridge Metro District, which would be deposited in escrow and overseen by an escrow agent.”

During the meeting, City Attorney Kathlene Kelly explained that a letter of credit makes funds easier to access should something go wrong. She said .”I wouldn’t put that 5% that there’s bonds in the same level of protection as having the 15% warrantee letter of credit or cash guarantee that the city normally carries during the warranty period. Because in my view it’s not equivalent protection.”

Sterling Bay was not asked directly if they were able to get a letter of credit. Sterling Bay recently asked for a loan extension on $230M of debt on a Chicago office building. They are balking at a $40M paydown the lender is asking for in exchange for an extension. (“Sterling Bay, JPMorgan at odds with Wells Fargo on $230M Fulton Market debt–Balk at $40M paydown lender wants for latest loan extension, The Real Deal Real Estate News April 15, 2024)

In addition to concerns about the financial guarantee, residents expressed concerns about the process and consideration of an incomplete application.

A representative from Citizens for a vibrant sustainable Louisville, Sherry Sommer, expressed disappointment with the council’s decision. She said ”This was not ready to pass. There are nine essential conditions for approval that have not been met. In addition to the reduced financial guarantee, the contributions to public infrastructure are inadequate to deal with the traffic created by the project. There is no plan or financing to deal with the premature failure of the 36 interchange.” However, Citizens for a Vibrant Sustainable Louisville is still encouraged by the results of the election that overturned the previous, larger plan for Redtail Ridge. Overall square footage is smaller and the developer has promised a conservation easement on 47 acres of land north of the development.”

Under pressure from residents, the developer agreed to a prohibition on rodenticides for prairie dog control during the construction of public infrastructure. Dana Bove of Front Range Bald Eagle Studies said “This is a significant step in safeguarding not only these keystone species but also the many predators, including the bald eagles we have studied extensively, that rely on them” However, he expressed concern about eliminating all prairie dog colonies on site. “The data we have collected, that is in the report we have sent to each of you, clearly show that the Stearns eagles rely heavily on the RTR site for hunting and foraging, with a significant portion of their diet coming from the prairie dog colonies there. Removing this critical resource would almost certainly constitute a violation of the Bald and Golden Eagle Protection Act, as it would ‘adversely change feeding or other essential biological functions necessary for sustaining adult and juvenile eagles.’”

The citizens groups will stay involved as the development moves on through the next steps in the process.

References:

Councilmember Barbara Hamlington’s statement in meeting video 3:10:17 https://louisville.ompnetwork.org/embed/sessions/298470/08-20-24-city-council-meeting

Quote from staff memo page page 2/754 with more explanation on page 28/754. (Prairie dog information is also on page 2/754) https://www.louisvilleco.gov/home/showdocument?id=42848&t=638594178676004586

City attorney Kathlene Kelly statement in meeting video 3:13:19 https://louisville.ompnetwork.org/embed/sessions/298470/08-20-24-city-council-meeting