City details Circle K redevelopment plan: 45–50 workforce units, grocery space and complex TIF financing
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Summary
City staff presented a redevelopment proposal involving Circle K and the Convergys parcel that would include purchase of back lots, a land swap, 45–50 workforce housing units, and an expanded Circle K store with an additional 1,200 sq ft of grocery space; staff outlined financing options including TIF mechanics, tax-credit equity and a $600,000 city incentive gap.
City housing and public-works staff presented a redevelopment plan Monday that pairs a Circle K convenience-store redevelopment with new workforce housing on the rear parcels of the former Convergys site.
Melissa Cook (housing) and Andrew Hayes (public works) told council the city is considering a $600,000 purchase agreement to acquire the back lot the city already owns portions of and to complete a land swap that would provide Circle K the front parcels. The developer’s plan would include 45–50 workforce housing units on the back parcel and Circle K said it would add roughly 1,200 square feet dedicated to grocery items to help address a nearby food desert.
Staff framed the $600,000 as a gap‑closing incentive, not a direct demolition contract: the amount represents the demolition/transaction shortfall that makes the project feasible. The city is not proposing to federalize demolition work; staff warned using city funds directly for demolition could trigger federal environmental compliance obligations. Instead, the proposed structure is an acquisition/real‑estate incentive to enable a public‑private partnership. Staff described potential financing tools including tax‑credit equity (through the Colorado Housing and Finance Authority), private activity bonds, and working with the Urban Renewal Authority to reset a TIF baseline if demolition occurs and new construction follows.
Council members pressed staff on several points: there is no appraisal for the building (the $702,000/$121,000 figures cited are tax‑roll assessments), vandals had gutted interior systems and the roof had collapsed in places, asbestos abatement will be required, and state permits could determine the demolition timeline. Staff said Circle K has a contract with Convergys to perform demolition and that Circle K would execute demolition within 90 days of their contract execution, subject to permits. Staff also reported preliminary outreach: they had already contacted the developer to alert them to the reconsideration motion on a prior resolution and said the developer was "pretty disappointed."
Concerns from council included public‑safety and neighborhood impacts, with one councilor urging gated or secured designs given crime in the area. Staff pointed to other recent local affordable projects that included controlled access as examples and said security can be built into project plans and budgets if specified at the development stage. Staff said they would issue an RFP for the housing developer portion once site control is achieved.
No final purchase or appropriation was approved Monday; staff said the matter will come back as a formal item. Council asked staff to verify insurance/deductible history with Convergys and to provide further documentation about the property condition as part of forthcoming agenda materials.
