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HomeMy WebLinkAboutDowntown Development Authority - Minutes - 06/05/2003DOWNTOWN DEVELOPMENT AUTHORrTY REGULAR DIRECTORS' MEETING Kim JoRpAIN CmAtR 22 1.0524 (W) BILL BERTSCHY, COUNCIL LIAISON 48&4-8.838 (W) ANNE GARRISON, STAFF LIAISON 484-2020 (W) MINUTES OF JUNE 5, 2003 REGULAR MEETING THE BOARD OF DIRECTORS OF THE DOWNTOWN DEVELOPMENT AUTHORITY MET IN REGULAR SESSION AT 7:30 A.M. ON JUNE S, 2003 IN THE MEETING ROOM AT HOME STATE BANK LOCATED AT 303 EAST MOUNTAIN AVENUE, FORT COLLINS, CO 80524. PRESENT THERE WERE PRESENT: LARRY STROUD, CHAIR Kim JORDAN, VICE CHAIR JASON MEADORS, SECRETARY/TREASURER MARY BRAYTON GREG BELCHER BILL SEARS ABSENT: BILL BERTSCHY STEVE TAYLOR CAREY HEWITT STAFF: ROBERT STEINER, E%ECUTIVE DIRECTOR ANNE GARRISON LUCIA ULEY, COUNSEL GUESTS; JOHN FISCHBACH, MYRNE WATROUS, RICK GOODALE, DAVID SHORT, MICKEY WILLIS, STEVE S MISSY LEVINGER, MIKAL TORGERSON, Tim MERRIMAN, ALAN KRCMARIK, GREG GLEBE CALL TO ORDER MR. STROUD CALLED THE MEETING TO ORDER AT 7:37 A.M. AND ROLL CALL WAS TAKEN, APPROVAL OF MINUTES MR. BELCHER MOVED TO APPROVE THE MINUTES OF MAY 1 , 2003 THI5 WAS SECONDED BY MR. MEADORS AND CARRIED UNANIMOUSLY, PRESENTATION MR, STROUD PRESENTED A COMMEMORATIVE PLAQUE L15TING PROJECTS COMPLETED DURING HIS TENURE, TO OUTGOING BOARD MEMBER RICK GOODALE. MR. STROUD THANKED HIM ON BEHALF OF THE BOARD FOR HIS COMMITMENT TO THE DDA AND DOWNTOWN. ELECTION OF OFFICERS MS. JORDAN - NOMINATED BY MR, BELCHER AS CHAIR - VOTE WAS UNANIMOUS MR, TAYLOR - NOMINATED BY MR, MEADORS AS VICE CHAIR - VOTE WAS UNANIMOUS MR, MEADORS - NOMINATED BY MS. BRAYTON AS SECRETARY/TREASURER - UNANIMOUS PRESENTATION M5. JORDAN PRESENTED OUTGOING CHAIR, LARRY STROUD, WITH AN INSCRIBED GAVEL AND SOUNDING BLOCK, WITH THE DEEPEST APPRECIATION OF THE BOARD FOR HIS MANY SERVICES TO THE DDA AND DOWNTOWN. 1� NATIONAL BANK DISCUSSION OF THIS PROJECT 15 POSTPONED UNTIL THE JULY MEETING. DDA MINUTES PAGE 2 EMPIRE HOTEL MR, LEVINGER PROVIDED A BRIEF BACKGROUND AND DESCRIPTION OF HIS PURCHASE OF THE HISTORIC ARMSTRONG HOTEL. ORIGINALLY HE PLANNED TO PUT APARTMENT$ ON THE UPPER FLOOR FOR A FEW YEARS ONLY, BUT HAS SINCE DECIDED TO RESTORE IT AS A HOTEL ON THE ORDER OF THE RESIDENCE INNS, DDA IS BEING ASKED TO PARTICIPATE IN THE AMOUNT OF $282.000 TO RESTORE THE HISTORIC STOREFRONT, IN ADDITION THE BUILDING MUST BE FLOOD PROOFED TO CURRENT STANDARDS. TWO TRANSFORMERS WILL BE MOVED AND/OR BURIED, M5. BRAYTON INQUIRED ABOUT PARKING NEEDS, AND MR, LEVINGER RESPONDED THAT HE IS NEGOTIATING WITH QWEST AND SAFEWAY FOR ADDITIONAL SPACE. A CONCERN WAS RAISED WITH REGARD TO THE PROPOSED AWNINGS AND ELECTRICAL NEEDS. COUNSEL RESPONDED THAT THE ELECTRICAL PORTION WAS A PUBLIC IMPROVEMENT, AND THAT DDA HAS DISCRETION WITH REGARD TO AWNINGS. IT WAS CLARIFIED THAT MR. LEVINGER MUST RETURN TO THE BOARD FOR SIGNAGE. AT THIS JUNCTURE, MS. BRAYTON MOVED TO PARTICIPATE IN THE PROJECT UP TO $285,000 TO BE FUNDED BY TAX INCREMENT, THIS WAS SECONDED BY MR. BELCHER AND CARRIED UNANIMOUSLY. NATIONAL ASSOCIATION THIS PROJECT WAS PRESENTED BY MICKEY WILLIS AND Tim MERRIMAN, EXECUTIVE DIRECTOR OF FOR INTERPRETATION THE NATIONAL ASSOCIATION FOR INTERPRETATION, A NON PROFIT PROFESSIONAL ORGANIZATION FOR HISTORICAL HERITAGE, AND NATURE INTERPRETIVE EDUCATION AND TRAINING. A STAFF OF TWO IN 1995 HAS NOW GROWN TO ELEVEN, AND EXPECTS TO EXPAND TO TWENTY IN THE NEAR FUTURE. THE CV AXLE BUILDING AT 230 CHERRY STREET HAS BEEN IDENTIFIED AS THE PROPOSED NEW SITE. IT WILL REQUIRE FAgADE RESTORATION, AND THE DESIGN CALLS FOR THE BUILDING TO BE BRICK AND GLASS SKINNED, TOGETHER WITH SEVERAL PUBLIC IMPROVEMENTS SUCH AS PARKING AND SIDEWALK. DDA IS BEING ASKED TO PARTICIPATE IN THE AMOUNT OF $200,000 WHICH IS 22% OF THE ENTIRE PROJECT COST, THE CERTIFIED INTERPRETIVE TRAINING PROVIDED BY THIS ORGANIZATION BRINGS BETWEEN ONE AND TWO HUNDRED, OFTEN HIGH LEVEL INDIVIDUALS, A YEAR TO TOWN FROM MANY DIFFERENT NATIONS SO DURING THEIR STAY, THERE IS SOME ECONOMIC IMPACT. MS. BRAYTON INQUIRED ABOUT THE TIMEFRAME. THE END OF SUMMER COMPLETES THE PLANNING PHASE, AND BUILDING SHOULD COMMENCE IN SEPTEMBER, WITH A MOVE TO THE NEW SITE IN MARCH 2O04. MR, MERRIMAN EXPLAINED THAT PART OF THE BUILDING WILL NEED TO BE LEASED TO ASSIST WITH EXPENSES, AND THIS WILL BE USED AS AN INCUBATOR FOR NEW NON PROFITS. M5. BRAYTON THEN ASKED FOR REASONS FOR DOA TO EXCEED ITS NORMAL PARTICIPATION, AND THE FOLLOWING POINTS WERE OFFERED BY MR, STEWER: • WE ARE ALMOST AT THE POINT OF LOSING THIS PROFESSIONAL ORGANIZATION TO LOVELAND • IN 50 DOING WE STAND TO LOSE BETWEEN 1 I - 25 JOBS IN THE NEXT SEVERAL YEARS • AN OLD GARAGE 15 RENOVATED AND PROVIDES STIMULI FOR THE SURROUNDING AREA • ONE TO TWO HUNDRED PEOPLE COME TO TOWN EACH YEAR WITH DISPOSABLE INCOME • IT 15 A NON PROFIT, AND MAY ATTRACT OTHERS • ITS USE IS PERFECT FOR THE CENTRAL BUSINESS DISTRICT • BOHEMIAN FOUNDATION OFFERS THE KIND OF GRANTS MENTIONED BY MR. MERRIMAN • THE RIVER WILL PROVIDE A RICH TRAINING GROUND FOR THIS ORGANIZATIONS TRAINEES • THEY HAVE TRAINED THE ONLY THIRTY INTERPRETIVE PLANNERS IN THE NATION MR. MERRIMAN CONCLUDED BY STATING THAT A HERITAGE LIBRARY 15 PLANNED WHICH WILL BE HOUSED IN THE BUILDING, WITH MANY ORIGINAL AND FIRST EDITION BOOKS, MR. BELCHER MOVED TO PARTICIPATE IN THIS PROJECT UP TO $200,000 TO BE FUNDED THROUGH TAX INCREMENT. THIS WAS SECONDED BY MR. MEADOR$ AND CARRIED UNANIMOUSLY. WELCOME THE DOWNTOWN DEVELOPMENT AUTHORITY HAD NOT PREVIOUSLY BEEN ADVISED OF THE APPOINTMENT OF WILLIAM C. SEARS TO THE BOARD. AT THIS JUNCTURE, A WELCOME WAS EXTENDED AND HE WAS INVITED TO JOIN THE BOARD AT THE TABLE. XYLEM DESIGN MIKAL TORGERSON PRESENTED ON BEHALF OF PROJECT OWNER, GREG GLEBE, WHOSE 325 CHERRY ST PROPERTY IS LOCATED AT 325 CHERRY STREET, FOLLOWING SOME EXTENSIVE DAMAGE IN THE MARCH SNOWSTORM, THERE 15 A NEED TO REBUILD, AND A PROPOSAL TO DO SO IN A DIFFERENT MANNER HAS BEEN SUOGESTED. DDA MINUTES PAGE 3 IN RECENT YEARS, MUCH OF THE WORK OF XYLEM DESIGN, WHICH MANUFACTURES EASELS, HAS BEEN OUTSOURCED, REQUIRING LESS AND LESS SPACE FOR THE OPERATION. THEREFORE IT IS PROPOSED THAT THE STRUCTURE BE REBUILT TO APPEAR AS, AND EVENTUALLY BECOME SEVEN TOWNHOMES. THESE WOULD LATER BE CONVERTED TO RESIDENCES. THE REQUEST BEFORE THE BOARD TODAY IS FOR $50,000. STAFF IS RECOMMENDING $25.000. WITH A COVENANT THAT THE OWNER DEFER THE CONVERSION TO RESIDENCES UNTIL DDA'S INVESTMENT HAS BEEN RECOUPED, APPROXIMATELY THREE YEARS FOLLOWING COMPLETION. M5. BRAYTON MOVES TO SUPPORT THE PROJECT IN THE AMOUNT OF UP TO $25,000 USING TAX INCREMENT FUNDING, AND PROVIDING THE CORE AND SHELL BE BUILT AS PROPOSED. MR. BELCHER SECONDED THE MOTION. MS. JORDAN EXPRESSED CONCERN THAT THE PROJECT FELT TENTATIVE, BETWEEN THE COMMERCIAL AND RESIDENTIAL CONSIDERATIONS. PERHAPS RECONSIDERATION ON THE PART OF THE OWNER WOULD PROVIDE GREATER CLARIFY FOR THE BOARD. AT THIS POINT, M5. BRAYTON WITHDREW HER MOTION, AND MR, BELCHER CONCURRED. IT WAS THEN REQUESTED THAT MR. GLEBE RETURN TO THE BOARD AT ANOTHER TIME. A RECOMMENDATION WAS MADE TO DISCUSS THIS PROJECT WITH THE ASSESSOR. BEFORE AGREEING TO PAY THE DIFFERENCE BETWEEN THE PROPERTY TAXES NOW, AND HOW THESE WILL CHANGE AS THE RESIDENCES EMERGE. OPERA GARDENS INTRODUCING THIS PROJECT TO THE BOARD, MR. STEINER NOTED THAT DDA IS PART OWNER OF OPERA GALLERIA AND THE PARKING RAMP, AND THEREFORE BOARD PERMISSION IS SOUGHT IN THIS PROPOSAL PRESENTED BY MIKAL TORGERSON, THE PROJECT CALLS FOR THE CONSTRUCTION OF THREE PENTHOUSES ON TOP OF OPERA GALLERIA, AND THIS WOULD INCLUDE A CONNECTING BRIDGE FROM THE PENTHOUSES TO THE FOURTH LEVEL OF THE CIVIC CENTER PARKING STRUCTURE. MR. TORGERSON IS CONFIDENT THAT THE BUILDING HAS THE STRUCTURAL INTEGRITY TO SUPPORT THE ADDITION, WHICH WILL INCLUDE HANGING GARDENS, LAWNS AND POOL, IF PERMISSION 15 GRANTED, DDA 15 ASKED TO WRITE A LETTER TO THAT EFFECT. MR. MEADORS MOVED TO DIRECT STAFF TO WRITE A LETTER SUPPORTING THE CONSTRUCTION OF THE PENTHOUSES, AND CONNECTING BRIDGE IN ACCORDANCE WITH THE PLANS PRESENTED, THIS WAS SECONDED BY MR. BELCHER. MR. TORGERSON INQUIRED ABOUT THE NEED TO OBTAIN AN EASEMENT, AND MS. LILEY AGREED TO RESEARCH THE MATTER SINCE THERE ARE THREE OWNERS INVOLVED. MR, MEADORS THEN AMENDED HIS MOTION TO INCLUDE THE FOLLOWING STATEMENT: "AND TO ALLOW FOR PERMTSSTON OF ANY NECESSARY EASEMENTS. " MR. BELCHER SECONDED THE AMENDMENT AND THE MOTION CARRIED UNANIMOUSLY, DOWNTOWN STRATEGIC MAYOR MARTINEZ ASKED THAT DDA MANE A RECOMMENDATION TO COUNCIL WITH REGARD TO THE PLAN PARKING ISSUE. THE OPTIONS AS PRESENTED AT THE LAST MEETING ARE AS FOLLOWS: ENHANCED ENFORCEMENT, INSTALLATION OF METERS OR TO CONTINUE WITH THE PRESENT SYSTEM. INCLUDED IN THE BOARD PACKETS 15 A LETTER FROM THE DOWNTOWN BUSINESS ASSOCIATION, THAT ESSENTIALLY REFLECTS MR. STEINER's RECOMMENDATION. IN ADDITION TO DBA'S SUGGESTIONS WE SHOULD INCLUDE THE EXECUTIVE COMMITTEE'S RECOMMENDATION THAT SOME LANGUAGE BE ADDED ENCOURAGING THE CITY TO WORK WITH DOWNTOWN BUSINESSES TO PROVIDE A DISCOUNTED AND MORE EFFECTIVE VALIDATION PROGRAM, MS. BRAYTON THEN MOVED TO SUPPORT THE PARKING PROPOSAL FOR ENHANCED ENFORCEMENT SIMILAR TO THAT STATED IN DBA'S LETTER TO COUNCIL, IN ADDITION, A DISCOUNTED VALIDATION PARKING PROGRAM AND DISCOUNTED LONG TERM PERMITS SHOULD BE INCLUDED TO ENCOURAGE EMPLOYEES TO PARK IN THE GARAGES. ADJOURN THERE BEING NO FURTHER BUSINESS, THE MEETING ADJOURNED AT 9.20 A.M. JASON MEADORS, SECRETARY DOWNTOWN DEVELOPMENT ddoAUTHORITY TO: DDA Board of Directors FROM: Chip Steiner DATE: July 8, 2003 RE: First National Bank Attached is a letter from Marc Driscoll outlining First National Bank's plan for a $2.3 million facelift to its building at 205 West Oak Street. The letter is accompanied by a rendering and a copy of Latimer County's assessment of the taxable value of the completed project. While the hard cost of the project to the Bank is $2.3 million, the County is estimating a real increase in value of $256,000. The County's assessment is based on the income approach and it is concluding that a new fapade will not have much impact on the building's ability to generate additional revenue. An increase of $256,000 in value generates about $7,000 annually in tax increment. Therefore, if the completed project comes onto the tax roles in 2005, there will be a gross increment of roughly $50,000 through the year 2011. The Board is not bound to the $50,000 figure. State statute stipulates that downtown development authorities must pay market value for any real estate acquisition, subject to any additional considerations made by the Board. In this instance, the DDA is buying an easement on the fapade, not for the purpose of increasing the Bank's income, but for the benefit an improved building "face" provides to the public. Probably two-thirds of the improvement costs ($1.5 million) will be spent on the fapade of the building. The DDA easement would be for a period of seven years. If the value is depreciated at a straight 10 percent annually it will be worth around $725,000 at the end of that seven-year period. A value of $725,000 would generate a gross tax increment of $130,000 through the year 2011. Staff believes there are good reasons to pay more than $50,000 for the fapade easement and good reasons to stay at that figure. First National Bank is a cornerstone business in downtown Fort Collins and has been a supporter of the DDA since its inception in 1981. It is the largest bank in the City and had it ever chosen to leave the central business district it would probably have initiated an exodus of many other banking institutions. The Bank has played a pivotal role in many of the downtown redevelopment projects over the years and not all of them simply as a commercial lender. For instance, through a coalition of banks and under the auspices of the Community Reinvestment Act, First National Bank took the lead in capitalizing the acquisition and improvement of the old post office (now the Museum of Contemporary Art) by providing an interest -free loan that becomes forgivable after a period of years. For these reasons, the Board could find that the new fagade on the building is worth more than $50,000. On the other hand, the Board must consider whether such reasons truly warrant an exception. The Board so found with the Cortina project because it strongly believed a high -quality housing project was necessary to the future wellbeing of downtown. The Board must make a similar finding in the case of First National Bank. ®First National Bank June 30, 2003 Mr. Chip Steiner Downtown Development Authority 19 Old Town Square, Suite 230 Fort Collins, CO 80524 Dear Chip, Mark Driscoll PRESIDENT The First National Bank is in the process of a major facelift. Our 40 year old building was beginning to look a bit tired and we also realized that Mason Street has experienced significant improvements. The total estimated cost of the facelift is $2.3 million. I have spoken with the County Assessor's office to determine the probable increase in actual value for tax purposes. Christine Murray, senior appraiser in the Assessor's Office, has concluded by using the income approach, the increased value will be approximately $256,000. Copies of her appraisal are attached. We are requesting the participation of the DDA at whatever level the Board is comfortable. The facelift will be a significant improvement within the confines of the DDA. Chip, I am enclosing an artist rendering of the completed project and would like to thank you in advance for your support. Yours Very Truly, 205 West Oak Street P.O. Box 978 Fort Collins, CO 80522-0578 970.482.4861 INCOME APPROACH Effective Date of Valuation: 1 Jan 2003 Typical Date of Appraisal: I June 2003 2003 Parcel #: 97114-16-001 205 W.OAK - FIRST NATIONAL BANK BUILDING AREA - SF SIZE (SF) % Bank / Office 35,442 94.34% Office 2,125 5.66% TOTAL SF 37,567 100.00% POTENTIAL GROSS INCOME INC/SF SF NET Bank/Office $11.00 $35,442 $389,862 Office $9.00 times 2,125 $19,125 TOTAL SF $10.89 37,567 $408,987 LESS VACANCY & COLLECTION LOSS 9.00% $36,809 INCOME less V & C $372,178 ADDITIONAL INCOME $0 EFFECTIVE GROSS INCOME $372,178 OPERATING EXPENSES Management 4% $14,887 Utilities 3% $11,165 Janatorial 2% $7,444 Advertising I% $3 722 Insurance $0.30 $11,270 Repairs & Maintenance 5% $18,609 Reserves for Replacement 4% $14,887 Total Expenses 22% $81,984 EFFECTIVE GROSS INCOME $372,178 less OPERATING EXPENSES $81,984 NET OPERATING INCOME $290,194 VALUE (NET INCOME/OAR) $290,194 divided by 10.00% $2,763,800 VALUE PER SQUARE FOOT $74 INCOME APPROACH Effective Date of Valuation: 1 Jan 2003 Typical Date of Appraisal: 1 June 2003 2004 Parcel#: 97114-16-001 205 W.OAK - FIRST NATIONAL BANK BUILDING AREA - SF SIZE (SF) % Bank / Office 35,442 94.34% Office 2,125 5.66% TOTAL SF 37,567 100.00% POTENTIAL GROSS INCOME INC/SF SF NET Bank / Office $12.00 $35,442 $425,304 Office $9.50 times 2,125 $20,188 TOTAL SF $11.86 37,567 $445,492 LESS VACANCY & COLLECTION LOSS 9.00% $40,094 INCOME less V & C $405,397 ADDITIONAL INCOME $0 EFFECTIVE GROSS INCOME $405,397 OPERATING EXPENSES Management 4% $16,216 Utilities 3% $12,162 Janatorial 2% $8,108 Advertising 1% $4,054 Insurance $0.30 $11,270 Repairs & Maintenance 5% $20,270 Reserves for Replacement 4% $16,216 Total Expenses 22% $88,296 EFFECTIVE GROSS INCOME $405,397 less OPERATING EXPENSES $88,296 NET OPERATING INCOME $317,102 VALUE (NET INCOME/OAR) $317,102 divided by 10.00% $3,020,000 VALUE PER SQUARE FOOT $80 DOWNTOWN DEVELOPMENT ddoAUTHORITY TO: DDA Board of Directors FROM: Chip Steiner DATE: July 8, 2003 RE: Diorama Displays on the Poudre The DDA has received a request from David Lauer, representing Poudre RiverFest, for funding to pay for two or three dioramas along the banks of the Poudre at the Oxbow site. These dioramas would constitute DDA participation in the 2004 RiverFest (similar to its funding of stone benches this year and in years past). As of the date of this memo, no pricing has been established for the dioramas, nor has it been made clear just exactly what they will display. Mr. Lauer will be in attendance at the meeting to help clarify the project proposal. R i v e r F e s t RENDEZVOUS 633 Remington Street, Fort Collins, CO 80524 Phone — (970) 484-3678 Fax (970) 224-1726 Past Sponsors March 18, 2003 A-1 Wildwater Chip Steiner Fort Collins Downtown Development Authority Avogadro's 19 Old Town Square Fort Collins, CO 80524 A Wanderlust Adventures Re: Sponsorship of RiverFest 2003 Ben & Jerry s Ice Cream Dear Chip and the DDA Board, CH Diagnostics Friends of The Poudre and Trees, Water & People thank you for agreeing to sponsor the 17' Annual Poudre RiverFest! The City of Fort Collins Parks and Coopersmith Brewing Company Recreation Department, the Fort Collins Water Utility, and Colorado State University's Environmental Learning Center are our partners this year. Our two Downtown Development Authority 501-c (3) non-profit organizations are dedicated to the preservation and enhancement of the Cache la Poudre River, the quality of its water and its educational, recreational, Downtown Business Association ecological and historic values. RiverFest 2003 will once again be held behind The Northside Aztlan Center at Fort Collins Food Co -Op 112 E. Willow adjacent of downtown Fort Collins. It will feature the Second Annual Run for the River 5K foot race, canoe and kayak races and family ratting (water Mountain Shop level permitting), Procession of the River Species, live music, good food and drink by several vendors, more than 20 educational interactive displays coordinated by Mountain Whitewater Descents CSU's Environmental Learning Center, and Mountain Man Rendezvous encampments open both Saturday, Jun 7' and Sunday June 8'". New Belgium Brewery As a capital project next year we propose working with the City of Fort Collins to develop the first two or three of a total of 10 to 12 diorama displays placed Ranch -Way Feed along the urban river corridor from the Oxbow to the west end of Martinez Park I am in the process of getting pricing from Grand Visuals in Denver, and have received Rapid Transit Rafting guidelines through Timothy Wilder as to city staff recommendations. A copy of Timothy's email reply is attached. If this idea is acceptable to the DDA, I will begin Rocky Mountain Adventures working with the Art in Public Places Board, the Poudre River Heritage Alliance, Natural Resources Dept. and Parks and Recreation Dept, to make this a reality. Walrus Ice Cream The DDA's continued sponsorship will help guarantee that the value and importance of the river remains a big part of the public consciousness. Wheeler Commercial We hope to finalize the poster and other materials by April 25'. Again, thanks so much for your participation. 6 u Executive Director 493-1515 Page 1 of 1 David & Reggie and sometimes Jake & Anna From: '7imothy Wilder' To: <fotpl@attbi.com> Sent: Wednesday, March 05, 2003 3:33 PM Subject: Comments on FOP Poudre River Displays David, The City's River Team discussed your project this morning. In general, the group was supportive. They had the following comments: - Make sure you include mention of Native American history - Displays may need Art in Public Places Board review - Make sure that displays are integrated with the Poudre River Heritage Alliance projects, which focuses on water interpretation - Displays should include cultural history - Work with Natural Resources Dept. (start with Michelle Pawar) and Parks and Recreation Dept. (Craig Foreman) on your ideas. Hope these comments are helpful! Timothy Wilder, AICP City Planner City of Fort Collins PO Box 580 Fort Collins, CO 80522-0580 (970) 221-6756 (phone) (970) 224-6111 (fax) 3/18/2003 DOWNTOWN DEVELOPMENT ddoAUTHORITY TO: DDA Board of Directors FROM: Chip Steiner DATE: July 7, 2003 RE: Performing Arts/Civic Center/Gathering Place Last November at the DDA retreat, the Board established the development of a performing arts/civic center as its highest project priority. For the past few months an informal committee (Larry Stroud, Scott Smith, Jim Franzen, Mary Robertson, Lucia Liley, Steve Ryder, David Short, Bruce Hendee, Rich Harter, and I) has been meeting to discuss the steps necessary to get this project started. The focus of our discussions has been on: 1. Setting up an organization; 2. Funding mechanisms; 3. Project scope. Setting up an organization. To most effectively move this project forward we think a committee consisting of an executive branch and a working branch needs to be appointed by the Board of Directors. The executive branch would be composed of community leaders who can lend credence to the project and therefore help in private fundraising and who would, from time to time, sit with the working branch to give direction and make major decisions. The working branch of the committee would be divided into a number of sub -committees that would address issues such as site selection, fundraising, community outreach, volunteer coordination. The committee would be answerable either directly to the full Board or to a smaller group (for instance, the executive committee). To the project committee, we think it is important to bring in an outside management consultant at the very beginning of the process. The consultant would have proven skills in operating an entertainment venue, a clear understanding of efficient and effective design, and the ability to develop long-term corporate sponsorships. Funding mechanisms. There are two pieces to the money question: funding the pre - project expenses (campaign, design, possibly site acquisition, consulting services) and paying for the project itself. Town Square • Suite 230 • FortCotliiia, C(Aps4 To effect the first, the Board needs to authorize expenditures up to a certain amount (maybe $150,000 subject to approval by the executive committee). With regard to paying for the bricks and mortar, we have reached the conclusion that this project must ask as little as possible from Fort Collins taxpayers. Through the combination of DDA resources (estimated at $10 million through the year 2011), fundraising, and corporate sponsorships we think we can halve what was asked of voters two years ago. It is important to identify, and to the extent possible, secure financial commitments as early as possible. Toward that end the committee again recommends hiring professional consulting assistance so that we can quickly determine the potential for corporate sponsorships and for philanthropic giving. Scope of the Project. Both the Board of Directors at its retreat last November and the committee that has been meeting since then believed strongly that this project must be more than just a performing arts building, that it should be a "gathering place" (in Larry Stroud's words) for the whole community. In other words, it should serve more than the relatively few opera buffs who live in Northern Colorado. Toward that end, we have discussed everything from arts education facilities (actually a school) to ice rinks to farmers markets to hotels and convention centers, galleries, restaurants, community athletic facilities, and on and on. From these discussions emerged a "chautauqua" theme. Without belaboring the issue, the Chautauqua theme involves a place of intellectual, physical, and spiritual stimulation and rejuvenation. That is, it is a creative place that gives people the chance to expand their horizons and break away temporarily from the routine of their daily lives. To some extent, this idea involves little more than branding. However, if we brand, we need to be able to deliver the goods. Central to that need is a performing arts/civic center venue second to none in quality and big enough to attract acts from all over the world. Such a facility will serve as a catalyst so that other venues can be added as market conditions, money, and time permit. The Board has been provided a white paper from the existing committee and a "vision" letter from the Executive Director that go into much more detail about the Chautauqua theme. At this point, it is the performing arts/civic center that requires our attention. The Board is being asked to: 1. Formally establish a committee to oversee this project; 2. Authorize funding to the committee. Staff recommends that the existing committee be made a part of the formalized ad hoc committee. To that group we will add about ten additional people and, at various points, others to serve on necessary sub -committees. Should the Board approve the committee, Tom Gleason has very kindly and generously agreed to chair it on a temporary basis until it selects its own chair. Although there are a number of other people we have identified as being important to add to the committee, none have yet been formally asked. If the Board approves the above action our first steps will be to: 1. Extend invitations to those people we need to add to the committee; 2. Begin the RFP and selection process to hire a consultant; 3. Begin addressing site selection —the first step being to meet with the City regarding the site formerly proposed for the performing arts hall (Northwest corner of Mountain and Mason). DOWNTOWN DEVELOPMENT AUTHORITY TO: DDA Board of Directors FROM: Chip Steiner DATE: July 8, 2003 RE: Pine Street Trash Cans and Benches Subject to Board approval staff has tentatively agreed to pay for two benches and two trash cans to be placed on Pine Street. The merchants along the street met at length with the City, DBA, and DDA, outlining a list of their concerns (mostly being neglected, which is fairly accurate). In the course of the meeting they asked for benches and trash cans. Cost to the DDA would be around $3,500 and funds are available in the capital improvements line item of the administrative budget.