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HomeMy WebLinkAbout06/18/2025 - Economic Advisory Board - AGENDA - Regular Meeting Economic Advisory Board REGULAR MEETING June 18, 2025, 4:00 p.m. - 6:00 p.m. HYBRID MEETING OPTIONS Physical Location: 215 Laporte Ave EOC Training Space. Virtual option via Microsoft Teams: http://www.fcgov.com/eab-meeting 1. CALL TO ORDER 2. ROLL CALL 3. AGENDA REVIEW 4. CITIZEN PARTICIPATION 5. APPROVAL OF MINUTES 6. NEW BUSINESS a. Presentation and Discussion – City of Fort Collins Quarter Cent Sales Tax Renewal b. Dinner Break c. Discussion and Possible Action – Council Memo: Quarter Cent Sales Tax Renewal 7. UNFINISHED BUSINESS 8. BOARD MEMBER REPORTS 9. OTHER BUSINESS 10. ADJOURNMENT 6/18/2025 – AGENDA 5/21/2025– MINUTES Economic Advisory Board REGULAR MEETING Wednesday, May 21, 2025 – 4:00 PM 215 N Mason, EOC, or Microsoft Teams 1. CALL TO ORDER: 4:00 PM 2. ROLL CALL a. Board Members Present – • Braulio Rojas (Chair) (arrived late) • Chris Denton (Vice Chair) • Val Kailburn • Tim Cochran • Phillip Callahan • Brad Kreikemeier • Kim Palmer b. Board Members Absent – • Thierry Dossou c. Staff Members Present – • Tyler Menzales, Staff Liaison • Michael Bussmann, Economic Health Office • Clay Frickey, Planning Manager d. Guest(s) – • Hannah Wahl – Chamber of Commerce Advocacy Specialist 3. AGENDA REVIEW Menzales reviewed the published agenda. 4. PUBLIC PARTICIPATION None. 5. APPROVAL OF MINUTES – APRIL 2025 Cochran made a motion, seconded by Kailburn, to approve the minutes of the April 2025 meeting as presented. The motion was adopted unanimously. 5/21/2025– MINUTES 6. NEW BUSINESS a. Land Use Code Update Michael Bussmann, Economic Health Office, noted the phase one Land Use Code updates focused on residential zone districts and this upcoming phase is an update to commercial corridors. Clay Frickey, Planning Manager, stated the purpose behind much of this work is to align the Land Use Code and development outcomes with other big picture policy plans and community priorities. He provided information as to which commercial corridors will be the focus of the work, including the College, Harmony, Mulberry, and Timberline corridors, and noted the policy plans with which alignment is being sought include City Plan, the Economic Health Strategic Plan, Active Modes Plan, and Housing Strategic Plan. Frickey provided the timeline for the Land Use Code updates and provided a summary of community feedback received last fall. He stated there are four primary focus areas for feedback: design standards for commercial buildings and site design, development in the College corridor or transit-oriented development overlay district, development in the Harmony corridor and employment zone districts, and the development review process. Members and Frickey discussed the fact that developers and lenders will be the ultimate dictators of how much parking will be placed in multi-unit developments. Frickey noted limiting auto-oriented uses such as gas stations in the College corridor area has been discussed, though existing uses would be grandfathered. Additionally, he noted parking maximums have been discussed to be retained. Chair Rojas encouraged staff to proceed with caution when limiting parking so as not to ultimately have too little parking and pushing it onto residential streets. Frickey noted Longmont removed minimum parking requirements city-wide a couple of years ago and old minimum requirements turned into maximums. He stated there is a growing movement among cities to attempt to right-size parking. He also discussed possible opportunities and need for structured public parking at key locations accessible to bus rapid transit. In terms of the Harmony corridor employment districts, Frickey noted office environments have changed, and the Code is not aligned with the way office development occurs. He stated currently 25% of land area can be used for employment-supportive uses and there is talk of possibly relaxing that standard to a 50/50 split. Members discussed the importance of multi-story development rather than just parking lots. Bussmann noted changing the land use split to 50/50 would allow some of the remaining buildable land to not become corporate campus while still reserving some space for those uses in the community. A member asked if the plan has been examined to forecast whether it is 5/21/2025– MINUTES foreseen that there is enough space for the types of businesses that would provide employment for residents. Frickey noted there is data to show there is a great deal of land area available for primary employers even with the proposed changes. He also noted there are about 1.3 jobs per person in the Fort Collins area, which is considered to be quite healthy; however, he acknowledged the jobs/housing balance is a delicate one. Frickey outlined the proposed more specific design standards for commercial buildings, site circulation, and block size. Frickey discussed the proposal to streamline the development review process for things such as small business changes of use. He stated the concept may mean that short term improvements are not made to sites and they may naturally deteriorate to the point that a small business does not want to go into the site, thereby spurring redevelopment. Bussmann stated the goal of these development review changes is to balance the hurdles for small businesses with the community standards. Menzales stated an online question was submitted regarding whether the redevelopment process with King Soopers was positive and what was learned. Frickey replied people wanted to see that site have a more dense, urban style development, and the City did not have the standards to require that; therefore, proposed standards for projects around the MAX line will require denser development. He noted the City is trying to be collaborative in trying to achieve that vision rather than just putting it on private development. Frickey stated staff would like to return in July or August once draft Code language is developed to get a recommendation from the Board to City Council. b. Dinner Break (**Secretary’s Note: The Board took a brief recess at this point in the meeting.) c. Economic Health Council Priority Update Menzales noted Economic Health staff will be going to Council for a work session next week to discuss the Economic Health Council Priority, which includes advancing a 15-minute city by igniting neighborhood centers and pursuing an integrated, intentional approach to economic health. He outlined the five strategic objectives presented to Economic Health staff when it became a Council Priority: expanding business retention to include attraction, understanding barriers to business to support small businesses, developing a high-performing business research department, supporting and accelerating work force training programs, and coordinating and leveraging economic opportunities in innovation. Menzales discussed the Economic Health Strategic Plan’s vision statement and provided an overview of the highlights of Fort Collins’ economic profile noting Fort Collins is a growing, aging community with about 70% of its 5/21/2025– MINUTES population actively participating in the work force, which is a good percentage. He stated about 7,000 businesses are in Fort Collins and the average annual wage is about $67,000. He also noted 96% of all businesses in Fort Collins are small businesses with 50 employees or less. Menzales provided a chart indicating how various components of the job market and economy are interconnected. A Board Member asked if it is concerning that 2/3 of the large employers are government related. Menzales noted Fort Collins is home to many federal labs and employees and stated his team was asked to do a projection of what would happen if 1,000 federal employees were lost. He stated the ripple effect would be astounding and result in a loss of up to $333 million in revenue, or 1- 2% less sales tax revenue. Menzales also noted the community is relatively diverse in employment and could have a much higher number of federal employees. Menzales noted an online question was submitted regarding whether the Board has regular meetings with top five or ten employers to learn what business challenges they face. He stated the Board has not had those types of meetings, though Economic Health staff does have regular meetings with top employers and several hundred other businesses a year. Menzales discussed what an integrated, intentional approach to economic health looks like, including a switch from acting reactively to proactively to have communications with businesses before they are in crisis and economic mobility. He also went on to further detail the Economic Health approaches to the strategic objectives. Menzales discussed issues that are currently being tracked, including softening sales and use tax numbers which have resulted in a $5 million general fund shortfall, general economic uncertainty in terms of actions at the federal level, business owner mental health and burnout, record low restaurant profit margins, and tariffs increasing supply chain costs. Board Members commended the proactive approach and the fact that Economic Health is a Council Priority. They also discussed recent property valuations and their increases, which it was noted impact other aspects of the economy. Chair Rojas asked if someone from the County could speak to the Board regarding the property valuations. Menzales replied he could look into that possibility. 7. UNFINISHED BUSINESS None. 5/21/2025– MINUTES 8. BOARD MEMBER REPORTS New Board Member Kim Palmer introduced herself and discussed her employment history in Fort Collins. 9. STAFF REPORTS None. 10. OTHER BUSINESS None. 11. ADJOURNMENT a. 6:03 PM Minutes approved by the Chair and a vote of the Board/Commission on XX/XX/XX Signature: Headline Copy Goes Here Ginny Sawyer -Lead Policy and Project Manager Joe Wimmer –Utilities Finance Director Capital Sales Tax ¼- cent Renewal Headline Copy Goes Here 2 Renewal Timeline 2024 Q1 2025 Q2-Q3 2025 Q4-2025 ›November ballot›Begin Public Outreach and Engagement ›Refinement of all projects and Programs Council Touchpoints: ›March CFC ›Start to finalize total package ›Continue outreach Council touchpoints: ›May 27, work session ›July 8, work session ›July 15 or August 19 Ballot referral ›Begin package Development ›February Work Session ›March CFC ›April Work Session ›July CFC ›October CFC ›November Work Session Headline Copy Goes HereHistory of Dedicated Taxes 3 Tax Rate History 2.25% Base on-going rate from 1984- 2021 2.85% Base rate starting in 2021 with the addition of .60 increase from Keep Fort Collins Great 3.00% Total rate from 1994-2016 3.85% Total rate from 2016-2024 4.35% Headline Copy Goes Here 4 Tax Renewals Over Time Long-term Look at Possible Tax Renewals MULTIPLE ASSUMPTIONS 20502045204020352030202520202015 Open Space Yes (25 yr.) | 2006 - 2030 KFCG (10 yr.) | 2011 - 2020 KFCG.25 (10 yr.) | 2021 - 2030 Assume KFCG (10 yr.) | 2031 - 2040 Street Maintenance (10 yr.) | 2016 - 2025 Street Maintenance (20 yr.) | 2026 - 2045 Community Capital Improvement (10 yr.) | 2016 - 2025 Assume Capital Renewal (10 yr.) | 2026 - 2035 Assume Capital Renewal (10 yr.) | 2036 - 2045 2050 Tax Parks, Climate, Transit (26 yr.) | 2024 - 2050 Open Space Yes (25 yr.) 2030 – 2055? Headline Copy Goes Here 5 Capital Tax – Successful Project Package Asset Management & Master Plans Council Priorities Community Appeal Headline Copy Goes Here Headline Copy Goes Here 7 Totals & Summary ¼ Cent Tax Revenue •$11M annual revenue (2024) •$110M total revenue 2026-2035 (2024) Draft Project Package •$103M total projects (2024) Chart represents draft package ($103M) Headline Copy Goes Here 8 Comprehensive Project List Parks & Recreation •Community Bike Park •Downtown Parks Shop •Lee Martinez Farm Renovation •Mulberry Pool Recreational Replacement •Pickleball Complex & Courts (outdoor) Active Modes •Bike Infrastructure and Overpass/ Underpasses •Pedestrian Sidewalk Program •Recreational Paved Trails Program Zero Waste Infrastructure •Timberline Recycling Center Improvements •Construction Waste Diversion Equipment Housing •Affordable Housing Capital Fund Culture •Children’s Garden and Event Infrastructure •Historic Trolley Building Renovation Transit •Transfort Bus Replacement & Stop Enhancements Nature & River •Poudre River North – Access, Parks & Trails •Nature in the City Mobility/Safety •Arterial Intersection Improvement & Streetscape Program Headline Copy Goes HereOngoing Capital Programs-Transportation/Engineering 9 Arterial Intersection Improvements & Streetscape Program $12M • Shields and Prospect Intersection Improvements • Shields and Horsetooth Intersection Improvements • Drake and Lemay Intersection Improvements • College and Drake Intersection Improvements • Shields, Taft Hill, and N. Timberline Corridors • At least one streetscape project Bicycle Infrastructure & Overpass/Underpass Program $11M •Numerous bike lane and safe route to School projects •Potential grade separated crossings: •Power Trail connection to Caribou Drive •Power Trail connection to Nancy Gray Drive •Linden Street and Poudre River Trail Headline Copy Goes Here 10 Pedestrian Sidewalk Program $14M •Funding for construction of missing and ADA deficient sidewalks. •Provides approximately 1.5 to 2 miles of new sidewalk per year. •Priority is given to areas near schools to advance the Safe Routes to School Program. Transfort Bus Replacement & Stop Enhancements $3M •Approximately 150 bus stops will need replacement and updated amenities over the next 10 years. •At least 30 buses, including eight articulated MAX buses, reach •the end of useful life in the next 10 years. The previous 10-year capital tax funded $3M towards Transfort’s local match to leverage $12M in federal funds. Recreational Paved Trails $2.5M •Paved trails cost approximately $1 million per linear mile to build. •Additional annual funding through the capital tax will leverage Conservation Trust Funds and expedite Strategic Trail Plan implementation. Ongoing Capital Programs-Transportation/Engineering Headline Copy Goes Here 11 Funding Background Program 2005-2015 2016-2025 2026-2035 Arterials Streetscape Road Projects Bikes Intersections & Traffic Signals $11M Timberline Rd $5M Harmony Rd $4M Bike Implementation $1M Pedestrian Plan $3M North College Ave $4M Transit Replacement $900k Arterials $6M Bike Infrastructure $5M Bike/Ped Crossing $6M Bus Stops $1M Lincoln Ave Bridge $5.3M Linden St $3M Pedestrian Program $14M Bus replacement $2M Willow Street $3M Arterials & Streetscapes $12M ($18M) Bike Infrastructure & Crossings $11 ($20M) Pedestrian Program $14 ($16M) Bus Stops & Bus replacement $3M ($6M) Strategic Trails $10M $2.5 ($10M) $29M $45M $42.5M ($70M requested) Headline Copy Goes HereHousing 12 Affordable Housing Capital Fund $10M •Revolving Loan Fund start-up •Bonding against the sales tax to create $7.5M in available funds Headline Copy Goes Here 13 Funding Background Program 2005-2015 2016-2025 2026-2035 Housing Affordable Housing Fund $4M Affordable Housing Fund $10M $0M $4M $10M ($10M requested) Headline Copy Goes HereParks & Recreation 14 Mulberry Pool Recreational Replacement $10M Outdoor Pickleball Courts $4M Dog Parks $0M Community Bike Park $5M Lee Martinez Farm Renovation and Expansion $1M Downtown Parks Shop $7.9M Headline Copy Goes HereCultural Amenities 15 Children’s Garden and Event Infrastructure Upgrades $1.3M •A comprehensive renovation will rejuvenate the space to better align with current learning theory, and to address drainage and maintenance issues. Downtown Trolley Building $6.8M Building has been identified in the Downtown Masterplan as asset for community centered use •Currently houses object artifact collection and other storage Headline Copy Goes Here 16 Funding Background Program 2005-2015 2016-2025 2026-2035 Parks & Culture Lincoln Center $5M Park Upgrades $1.5M Senior Center $4M MOD $6M Carnegie $1.7M SECC $14M White Water Park $4M Gardens $2M Club Tico $250k Mulberry Pool $10M ($10M) Dog Parks $0 ($2.5) Pickleball $4M ($4M) Bike Park $5M ($5M) Lee Martinez $1M ($1M) Parks Shop $8M ($8) Trolley Barn $7M ($7M) Gardens $1.3M ($5.5M) $16.5M $24M $36.3M ($43M requested) Headline Copy Goes Here 17 Nature and Environment River/Accessibility Projects $8M •Looking at Lee Martinez and Legacy Park area to College •Focus on access for neighborhoods north of the river and river health – expanded scope to include Hickory Trail and Soft Gold Park Timberline Recycling Center Improvements $1M – reduced due to grant funding •ADA accessibility through ramps and walkways. •Expanded access to recycling bins to meet demand. Construction Waste Diversion Equipment Replacement: $2.2M •Five pieces of heavy machinery that support the Crushing and Recycling Facility. •In 2023, this facility processed approximately 138,000 tons of concrete and asphalt for reuse and diverting this material from the landfill. Nature in the City (NIC): $3M •City-led projects replace existing, resource-intensive and low habitat value landscapes with more diverse and efficient landscapes. •Community-led projects support efforts to extend naturalized landscapes throughout the community. Headline Copy Goes Here 18 Funding Background Program 2005-2015 2016-2025 2026-2035 River & Environment Nature in the City Fund $3M River Accessibility $8M ($8M) Timberline Recycling Improvements $1M Waste Diversion Equipment $2.2M ($2.2M) Nature in the City $3M ($3M) $0M $3M $14.2M ($14.2M requested) Headline Copy Goes Here 19 Draft Project Package 10-yr total (2024$) Pedestrian Sidewalk Program 14,000 Arterial Intersection Improvement & Streetscapes Program 12,000 Bicycle Infrastructure & Overpass/Underpass Program 11,000 Affordable Housing Capital Fund 10,000 Mulberry Pool Recreational Replacement 10,000 Poudre River North - Access, Parks, and Trails 8,000 Downtown Park Shop 7,900 Historic Trolley Building Renovation 6,800 Community Bike Park 5,000 Pickleball Outdoor Complex & Courts 4,000 Nature in the City 3,000 Transfort Bus Replacement & Stop Enhancements 3,000 Recreational Paved Trails 2,500 Construction Waste Diversion Equipment 2,200 Gardens on Spring Creek -Garden & Infrastructure 1,300 Lee Martinez Farm Renovation & Expansion 1,000 Timberline Recycling Center Improvements 1,000 Total $ 102,700 Headline Copy Goes HereNext Steps 20 •Finalize package •Refer to 2025 ballot Headline Copy Goes Here Headline Copy Goes Here Headline Copy Goes Here 23 Current CCIP Affordable Housing Funding Status Quo 2016-2025 Fund ($4.0M) •Development “last in” gap financing •Equity / direct subsidy •Fee Credits Considerations: •Funds are granted to projects and are not returned •Does not significantly “speed up” the pipeline •Has been used to fill gaps for multiple projects •Small portion of funding “stack” Headline Copy Goes Here 24 Affordable Housing Capital Fund Options Tool 1: Status Quo – Credits & Equity Current affordable housing fund structure •Fee waivers/credits •Direct subsidy/equity •Does not revolve •May not substantially accelerate pipeline Tool 2: Short-term loans Construction or Predevelopment Loans •Less than 5 years •1-3% Interest rate •May not substantially accelerate pipeline Tool 3: Long-term loans Long-term financing •Greater than 15 years •1% Interest rate •Allows for the utilization of different tax credit tools •Better advances pipeline Headline Copy Goes Here 25 Revolving Loan Fund Model Proposal Hybrid Model: Long- and short-term loans, interest generation for flexible application $5M into one project, long-term investment •Interest rate: if 1% •Annual payment to City: $50,000, interest only •Loan term: 16 years $2.5M reserved for shorter-term investments (2-3 years) •Interest rate: Varies, 1-3% •Annual payment to City: Varies, $25k - $75k •Loan term: 3 years or less Pros: Accelerates housing pipeline; creates new gap source of funding; replicable; balances long- and short-term needs Cons: Majority of fund revolves slowly; potential for smaller total interest payments to City; need shovel- ready projects for $2.5M portion of fund Headline Copy Goes Here 26 Potential Mechanism: Housing Revolving Loan Fund 10-year Bond Issuance $7.5M Housing Revolving Loan Fund (administered by partner) Fund Administrator Longer-term loans (>5 years) Construction loans (length of project) Short-term loans (<5 years) Voters approve CCIP and Bond Authorization $10M ($1M/Year) Debt Service Payments (10 yrs; City) Interest payments Repayment of loan principal