John Scarffe, Central City.  The City of Central Council approved an ordinance for a long-term lease between the City and the Central City Building Authority for the Belvidere Theatre during a regular meeting at 7 p.m. on Tuesday, August 21, 2018, at the City Hall, 141 Nevada Street. The Council also appointed a new judge and added and excluded property in the Business Improvement District.

The Council considered an ordinance approving a long-term lease between the City, as Lessor, and the Central City Building Authority, as Lessee, concerning the Belvidere Theatre, according to the meeting minutes. The Central City Building Authority is a Colorado nonprofit corporation. The property is owned by the City and is located at 139 Nevada Street, immediately adjacent to City Hall.

The City Council must approve long-term rentals or leasehold agreements having a duration of more than one year by ordinance. In this case, the lease agreement proposes an initial term exceeding one year, according to the minutes.

The property was listed as one of Colorado’s “Endangered Places” by Colorado Preservation, Inc. To be eligible for tax credits, the Building Authority will need to be exempt from federal taxation under Section 501(c) of the Internal Revenue Code. Approving the lease agreement will permit the Building Authority to apply for grants and tax credits to assist the City in its goal of rehabilitating the historic Belvidere Theatre, including but not limited to tax credits for qualified costs incurred in the preservation of historic structures pursuant to the Colorado Job Creation and Main Street Revitalization Act, according to the minutes.

The Council approved the first reading of the lease agreement and set the second reading and public hearing for Tuesday, September 18, 2018, at 7 p.m. in the Council Chambers.

The Council also approved a resolution appointing the Municipal Judge and setting the term and compensation for service.

City Manager Daniel Miera explained that David R. Gloss has resigned as the Municipal Judge for the City of Central. Council held a work session on Monday, August 13, to meet with two candidates for the vacant position, according to the minutes. Staff requested the approval of the appointment of either Louis A. Gresh or Jack W. Berryhill as the Central City Municipal Judge effective September 1, 2018, to expire on January 31, 2020, with eligibility for renewal of additional two-year terms. The total fiscal impact is $4,200 annually at $700 per month when court is in session.

Mayor Heider added that both candidates were well qualified, according to the minutes. She noted that she had worked with Judge Berryhill in her position in Jeffco and that he resides in Gilpin County. The Council appointed Jack W. Berryhill as the Municipal Judge.

The Council considered an ordinance conditionally approving the inclusion of property into the boundaries of the Central City Business Improvement District (CCBID), and an ordinance excluding property from the boundaries of the CCBID, according to the minutes.

These two ordinances concern the same City property that was previously excluded from the boundaries of the CCBID. A petition requesting the inclusion of the City property into the CCBID boundaries and a petition requesting the exclusion of the City property from the CCBID Boundaries were filed with the City Clerk on or about July 18, 2018, according to the minutes.

The Petitions were executed by the City manager. Following the date that the City property was excluded from the boundaries of the CCBID in 2017 (by and through prior Ordinance 17-07), owners of the 2003 bonds issued by the CCBID contested the exclusion of the City property from the CCBID because, in the Bondholder’s opinion, the exclusion created uncertainty and potential disputes regarding whether the exclusion would reduce the number of properties from which property tax revenues associated with the debt service mill levy may be generated for repayment of the bonds.

Although the property is City-owned and therefore exempt from taxation, any of the 16 parcels could be leased or sold to a private party for future development, in which case property tax revenues for the repayment of the bonds could potentially be generated.

The Bondholder contested the exclusion of the City property. To address the Bondholder’s concerns, the City has agreed to work cooperatively with the CCBID to include and then re-exclude the City property from the boundaries of the CCBID.

CCBID has filed a petition with the Gilpin County District Court to request that the Court set a hearing on the petition to examine and determine the validity of the CCBID’s power as a business improvement district.

The hearing on the petition took place on Friday, August 10, 2018. The Court entered its Judgment and Decree on the Verified Petition on Monday, August 13, 2018. Given that the Court entered its Judgment and Decree of record, the City Attorney recommended that City Council proceed with consideration of the two ordinances. The Council approved the ordinances.

(Originally published in the September 20, 2018, print edition of The Mountain-Ear.)