City staff pauses West Greeley predevelopment deliverables, continues negotiations and outreach

City of Greeley staff told the city council on Jan. 28 that negotiations over the West Greeley predevelopment agreement and lease remain active and that staff will not bring those agreements to council on Feb. 4 because the documents and analyses are not ready for council consideration.

The update, delivered during the council work session, gave council members an overview of outstanding legal red lines, additional financial modeling and planned community engagement. "We're not gonna be bringing forth to counsel, a predevelopment agreement or a lease agreement on the 4th because it's just not there," said Sarah Collin, staff member, explaining that staff wants to give council more time to review materials before a formal packet.

Why it matters: the West Greeley project is a major development proposal that would require negotiated agreements between the city and the developer (including a predevelopment agreement and lease). Council members asked for clearer risk assessments and more time to review legal red lines and financial assumptions before any formal action.

Staff said it is developing a third financial model to sit between a developer-provided model and a prior CBRE study, describing the new model as neither optimistic nor "fairytale" but based on market assumptions staff considers conservative. Staff also described planned joint legal-team meetings to resolve outstanding contract red lines. "We plan on having a joint meeting and to have this so we can resolve the red lines associated with this agreement as a whole," Collin said.

Council members pressed staff on the breadth of risk analysis they will provide. Councilor Olson asked that the risk assessment include not only financial risk but also operational, environmental, governance and partnership risks; Collin responded the risk assessment will cover financial, operational, environmental, market, governance and legal risks, among others. Councilor Veil asked about the next phases of outreach; Collin said staff will distribute a list of groups already contacted, continue community meetings (including sessions scheduled Thursday and Saturday of the week following the meeting) and roll out an online survey.

Multiple council members praised staff for stepping back to allow additional analysis. "Taking the time to do it right ... is what's more important," one council member said, thanking staff for delaying a rushed decision.

Next steps and staff direction: staff will (a) finish the third-party financial modeling, (b) convene joint legal-team meetings to resolve contract red lines, (c) hold additional community engagement sessions (including staff-led presentations on Thursday and Saturday), and (d) prepare a staff report and legally reviewed agreements that provide council sufficient time to review before any formal vote. Staff indicated they will not place the predevelopment or lease agreements on the Feb. 4 council agenda.

There was no formal council vote during the briefing. Staff said it will return with revised agreements and a staff report once the analyses and legal reviews are complete.

Ending: Council members encouraged continued outreach to boards and commissions that may be affected, including the Greeley Water Board and other advisory bodies, and asked staff to provide more detailed risk mitigation information when the item returns to council.