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HomeMy WebLinkAboutDowntown Development Authority - Minutes - 11/18/200416 DOWNTOWN DEVELOPMENT AUTHORITY REGULAR DIRECTORS' MEETING KIM''JORDAN, .-CMAIR 22 1.015'24 {W? BILL SIZaT;1 OHY, COUNCIL LIAISON 49 1 *4'7 :*9 LINDA GULA. STAFF LIASON 484-20e20 (W) MINUTES OF NOVEMBER 18, 2004 REGULAR MEETING THE BOARD OF DIRECTORS OF THE DOWNTOWN DEVELOPMENT AUTHORITY MET IN REGULAR SESSION AT 1 1 :00 A.M. ON NOVEMBER 18, 2004 IN THE BALLROOM AT THE ARMSTRONG HOTEL LOCATED AT 259 SOUTH COLLEGE AVENUE. FORT COLLINS, CO 80524, PRESENT Kim JORDAN, CHAIR STEVE TAYLOR, VICE -CHAIR JASON MEADORS, SECRETARY/TREASURER MARY BRAYTON CAREY HEWITT BILL SEARS JACK WOLFE LARRY STROUD BILL BERTSCHY STAFF ROBERT STEINER, EXECUTIVE DIRECTOR LINDA GULA LUCIA LILEY, COUNSEL GUESTS BRUCE BIGGI, ALAN KRCMARIK, TOM HACKER, KELLY OHLSON, DAVID SHORT CALL TO ORDER MS. JORDAN CALLED THE MEETING TO ORDER AT 1 1: 10 A.M. ROLL CALL WAS TAKEN APPROVAL OF MR. SEARS MOVED TO APPROVE THE MINUTES OF SEPTEMBER 9. 2004, SEPTEMBER MINUTES 1 5, 2004, AND OCTOBER 7, 2004. SECONDED BY STEVE TAYLOR AND PASSED UNANIMOUSLY, LIGHTSOURCE MR. STROUD STATED HE WOULD BE ABSTAINING FROM DISCUSSION AND VOTING ON THIS ITEM, MR. STEINER REFERRED TO THE PACKET MEMO IN WHICH LIGHTSOURCE IS REQUESTING $ 1 2,000 - $ 1 4,000 FROM THE DDA FOR FAgADE AND RIGHT-OF-WAY CHANGES ENTAILING A NEW SIGN, PAINT, AWNING, A PATIO ENCLOSURE AND SOME LANDSCAPING, STAFF SUPPORTS PAYING FOR THE PAINTING, FURNITURE AND FINISH WORK WHICH TOTALS $5,403 - $5,903. IT DOES NOT BELIEVE THE DDA SHOULD PAY FOR THE AWNING OR THE SIGNAGE SINCE THESE ARE SUBJECT TO CHANGE IN THE FUTURE. REPRESENTATIVES FROM UGHTSOURCE WERE NOT AVAILABLE TO ANSWER QUESTIONS. DDA MINUTES PAGE 2 NOVEMBER 18, 2004 THE BOARD DISCUSSION FOCUSED PRIMARILY ON THE FAgADE PAINTING, THE "JOHNNY'S PLACE" SIGN REMOVAL AND THE FINISHING (LANDSCAPING, PLANTERS, SCONCES, ELECTRICAL). THERE WERE QUESTIONS FROM THE BOARD ASKING IF THE PROPOSED SIGN HAD BEEN APPROVED BY THE CITY; WHETHER THE SIGN WOULD BE BACKLIT OR IF IT WAS BRUSHED ALUMINUM. THERE WERE FURTHER QUESTIONS CONCERNING WHAT WAS ENTAILED IN THE FINISH WORK. MS. BRAYTON ASKED IF LIGHT50URCE UNDERSTANDS THAT THE DDA OWNS THE FA4ADE AND WHAT THAT MEANS. MR. STEINER STATED HE FELT THEY DO UNDERSTAND. MS. BRAYTON MOVED FOR TENTA71VE COMMITMENT OF THE FAgADE PAINTING, THE "JOHNNY'S PLACE' SIGN REMOVAL, OUTDOOR LANDSCSCAPING, AND PERMANENT PLANTERS UP TO $5,000. SECONDED BY STEVE TAYLOR AND PASSED UNANIMOUSLY. ADDITIONAL INFORMATION FROM LIGHTSOURCE WILL BE BROUGHT BACK AT THE DECEMBER BOARD MEETING. COOPERSMITH'S THIS ITEM WILL BE HEARD AT THE DECEMBER 2, 2004 BOARD MEETING. BREWPUB OTHER BUSINESS BUDGET - MR. STEINER HANDED OUT A REVISED CASHFLOW STATEMENT. UPDATES - MR. STEINER HANDED OUT AN UPDATED LIST, ADJOURN THERE BEING NO FURTHER BUSINESS THE MEETING WAS ADJOURNED AT 1 1 :45 A.M. JA50N MEADORS. SECRETARY DOWNTOWN DEVELOPMENT AUTHORITY TO: DDA Board of Directors FROM: Chip Steiner DATE: November 30, 2004 RE: Coopersmith's Poolside Patio Coopersmth's Brewpub is asking the Authority for permission to use a portion of the alley that bisects its two restaurant facilities for additional outdoor dining. The proposed design and a description of it are attached. Staff supports this proposal. Coopersmith's takes care of its outdoor dining areas and the more sidewalk activity that is visible from the street the more people will be attracted to downtown. The patio area will encroach into the alley about six feet. In staff's opinion, this "crowding" effect is good. It creates a greater sense of activity and it encourages interaction between pedestrians and diners. The plan also includes large roll -up glass paneled doors that will open the patio area to the interior of the poolside space. This is reminiscent of many restaurants in Europe and it works well. If the Board concurs with staff's recommendation, legal staff will draft a new patio license agreement. 19 Old Town Square • Suite 230 • Fort Collins, Colorado 80524 • tel: 970.494.2020 • fax: 970.484.2069 Patio Plan submitted by Coouersmith's BrewPub Patio Plan Phase 1 — outdoor patio and indoor/outdoor patio Mon -Fri. 11:00 am — 3:00 pm outdoor only Pub Menu Mon — Fri. 3:00 pm — close indoor/outdoor Pool Menu Sat. & Sun 12:00 —close indoor/outdoor Pool Menu Phase 2 If lunch becomes popular at poolside open indoor/outdoor everyday with new sandwich menu done out of pool kitchen Phase 3 Completely gut poolside kitchen. Put in charbroiler, fryers, different pizza oven t� �� r Z m r m n 0 z C) O A A 0 O m m z y m m m r m D 0 z Alp DOWNTOWN DEVELOPMENT AUTHORITY TO: DDA Board of Dirf FROM: Chip Steiner DATE: November 30, 2004 RE: Mason Street North Project Commitment Extension Developers of Mason Street North have requested a one-year extension to the DDA's commitment to fund certain public improvements associated with the project (see attached letter). This is the third such request. Staff believes the project will begin construction early next year and it recommends extending the commitment for another 12 months. However, it suggests the Board add language that no further extensions will be given if construction on the project has not begun by April, 2005. DOWNTOWN DEVELOPMENT AUTHORITY PROJECT COMMITMENT TERMS The Downtown Development Authority Board of Directors makes this preliminary commitment to participate in the Mason Street North Development based upon the following terms: 1. The commitment by the DDA is for a period of 12 months commencing on the date the Board of Directors votes in favor of participation. If this project is being funded from administrative resources, it is contingent upon re -appropriation of funds by City Council if the 12-month period extends into the next budget year. If this project is being funded through a tax increment debt instrument, the DDA commitment is contingent upon approval by City Council. Funding type: _Administrative x TIF. 2. The project owner must provide the DDA with periodic updates, the frequency to be determined on a case -by -case basis. 3. Extension of the 12-month commitment may be considered upon the formal request of the project owner or authorized representative and must be placed on the Board of Director's agenda no later than the 12s' month of the most recent commitment term then in effect. 4. If there is a change in project ownership, the continuation of this commitment requires notice to the Downtown Development Authority and the Board may, at its sole discretion, require reconsideration of the DDA commitment. 5. Reduction in the private investment for taxable improvements, here declared at $8,000,000, of more than 10 percent requires reconsideration of the Authority's commitment by the Board of Directors. 6. This commitment is contingent upon the completed project being consistent in scope, use, and design with that presented to the Board at the time this commitment was made. If no scope, use, and design have been provided at the time of this commitment, the commitment is contingent upon the acceptance by the Board of Directors of a scope, use, and design as submitted at some later date but prior to any disbursement of funds. 7. This commitment is expressly contingent upon the fulfillment of all the terms of, acceptance of, and execution of an agreement between the Downtown Development Authority and the project owner(s). The DDA Commitment is: $540,677 for certain public improvements and fagade easements to be documented by the formal agreement between developer and Authority. This commitment shall not be renewed if construction on this project has not commenced by April 30, 2005. The date of this commitment is: December 2, 2004. Project Owner Please Print Name and Title Robert Steiner, Executive Director Downtown Development Authority v MASON STREET NORTH, LLC 4676 BROADWAY BOULDER, CO. 80304 Mr. Robert (Chip) Steiner Executive Director Downtown Development Authority And The Board of Directors 19 Old Town Square Suite 230 Fort Collins, Co. 80524 Dear Chip Steiner and DDA Board Members, On behalf of the Mason Street North, LLC. I would like to thank you and your Board of Directors for the commitment you all have shown toward creating a better downtown for Fort Collins and the Northern Colorado Front Range Community. We at Mason Street North, LLC. would like to continue the efforts of your work with your continued commitment of future funding from the Downtown Development Authority to the improvements that we all planned together over the past many months for this wonderful mixed -use development project that is called Mason Street North. I can assure you that we have been working on the project checklist that Chip provided us and that we will comply with all terms of this list. The working plan for MSN has been and will be the following: 1. The City staff and legal team met with us and determine that we could alter the current deeded and recorded parking agreement for the MSN project to include these new areas to be funded by the DDA into the public trust. 2. The project completed the development approval process in the early spring of 2002 with a rarely seen unanimous consent vote from the Planning and Zoning Board. 1 of 3 3. The finished working blueprints for the project have been totally finished and have substantially worked their way through the City Building Department processes. 4. This Mason Street North site is so complex with all the easements that zig zag and cross each other that the first contractor came in with bids +/- $700,000 too high. We are now at the final stages of a bid process with a second Contractor, who is local to Fort Collins, Drahota Construction, Inc. and we are feeling much better with being close to the target market pricing of 1 bedroom residential units starting at $170,000 and 3 bedroom units topping at $394,000. 5. We have now received our loan commitment for the construction funding and are simply awaiting the final bid proposal from Drahota Construction. The DDA financial commitment is paramount to the success of the project. 6. We currently have 15 out of 20 residential pre-solds with letters of intent and are today converting them over to binding purchase contracts. The commercial spaces below have been more difficult to lease because of the current 11.9% office and retail vacancy rate we have here in Fort Collins. However, we are confident that with our creative marketing skills and your help we can overcome this issue. Fiber Optic and the possibility of a Public Entity involvement with a Culinary School are also possibilities. Once the bid proposal is submitted to us, early in December 2004, from Drahota Construction, and City staff signs the new plat and releases are building permit the estimated time line for construction is 11 months form start, which would take us to the late part of 2005, depending on weather. 8. The legal description for all of the Mason Street North site has been legally defined, platted, attorney certified and now waiting for the last two signatures of the City Engineering and utility staff before recording. All the signatures, insurance binders, loan docs, title work and agreements will be complete prior to construction start and will include the DDA's protection and participation as well. The conclusion of all this is that we need your continued help and financial support in order to create this now, nearly, $9,000,000 downtown infill new -urban project. The unforeseen obstacles of the most complex building site imaginable blended with 2of3 uncompromising structural designs has cost us all time and money. The development team is totally committed to making this Mason Street North Development Project a showpiece of design and construction for Fort Collins that is not only consistent with the DDA's vision but sets forth design characteristics that visually enhance the underlying character of Fort Collins and will underscore and foster the overall vision of the Downtown Development Authority as well as the character of the Community. We believe that we are offering a high end project at a great downtown location and at better market price values. On behave of the rest of the Mason Street North, LLC partners and development team, thank you for your patience and continued support of this project. It could not have happened without you. Sincerely, Peter f. Clyde Peter F. Clyde Mason Street North, LLC., Partner 2510 Westward Drive Lafayette, Co. 80026-9176 888-463-7039 Cc: Mickey Willis —via email. 3 of 3 DOWNTOWN DEVELOPMENT ddaAUTHORITY TO: DDA Board of � ectdrs FROM: Chip Steiner DATE: November 30, 004 RE: Jensen Investment Group Projects 301 South Colleee_Avenue Located at the southwest corner of College and Olive (south and across Olive Street from the Armstrong Hotel) this property most recently was rented to a turquoise shop and a small computer retailer. Prior to that it was a gas station. The proposal before the Board involves $100,000 for interior improvements, new facades on all four sides of the building and a large dining plaza on what is now a parking lot that fronts onto college and Olive. Fagade improvements entail replacement of the wood siding with brick, removal of the mansard roof and the addition of awnings. The parking lot will be repaved with brick and perhaps include a water feature or a sculpture. The perimeter of the area will be enclosed with a wrought iron fence. According to the Larimer County Assessor, the finished property will generate an additional $6,718 in annual property taxes that, over the five-year period the increment is collected for the DDA, will generate $33,590. The request from the developer is for $32,796 to be used for storefront improvements, awnings, the brick pavers in the dining plaza, the fencing and the fountain or sculpture piece. Staff believes DDA funds can be used for the fagade and storefront improvements. However, for Authority funds to be used for the brick pavers and the fencing requires that an easement be granted on that portion of the property and staff does not support this. Even with a public easement it will not be clear at all that the space is open and available to the public. There is a difference between a facade that presents an image to the public as opposed to a space that is intended for active public use. While it can be argued that the plaza contributes to the public streetscape, its use is clearly intended as a benefit to the tenants of the building. Staff also believes that Art in Public Places funds sho 4g sought for the sculpture or fountain. Staff does not know whether such funds caw bk- W. d for artwork located on private property. Staff s recommendation is to provide the funding for: 4 30 percent of storefront, windows, doors-- $8,400 25 percent of brick and stone for farade-- 16,330 Awnings-- 1,350 Total: $26,080 Funds for this project can be taken from the miscellaneous category of the 2004 bond issue. 130 South Colleee Avenue Until recently, this property was operated as Brotherton's Office Supply. The Crown Pub operates in the south half of the building. The proposal before the Board removes the massive wood elements and the incompatible brickwork from the fagade. These will be replaced with more historically sensitive materials. Most of the work will be done on the lower northern'/4 section of the fagade itself. That is, the Crown Pub fnade and the second floor fapade will not be affected. The County Assessor estimates $3,157 in annual tax increment generated by the completed project. This computes to $15,785 over a five-year period. The Authority is being requested to fund $15,470. The fagade to be removed is ugly. The proposed changes will make a significant improvement to the streetscape and staff supports the developer's request. Funds can be drawn from the miscellaneous line item of the 2004 bond issue. DOWNTOWN DEVELOPMENT AUTHORITY TO: DDA Board of Directors FROM: Chip Steiner DATE: November 30, 2004 li RE: Lightsource Attached is a breakdown of the costs for those items included in the "finishing" category for the Lightsource fagade improvements considered by the Board two weeks ago. A description of the sign is also included. Lightsource has spent around $50,000 for improvements to the portion of the building it owns. A few of the expenses may result in an increase in property taxes but staff does not believe it will be substantial. Nevertheless, even an increase of $1,000 is enough to cover the Authority's suggested commitment of $5,000. The cost range for items in the "finishing category" is $2350 - $3,650. Add to that the cost of fagade painting ($1,813) and the sign removal ($500) and the total ranges from $4,663 to $5,963. Staff recommends a commitment of up to $5,000. r lightsource crenttre co��uatw�c, lot. Mr. Robert Steiner Executive Director Downtown Development Authority 19 Old Town Square, Suite 230 Fort Collins, CO 80524 November 29, 2004 Dear Chip: Thank you for the meeting with me this morning. In preparation for Thursday's meeting, please find the information you requested below. Renovations Costs To date, Lightsource has spent an estimated $50,000 renovating the inside of our building. Below is a list of the improvements done: • Demolition of bar, DJ station, foam pit, stage and carnival lights • Electrical/IT business installation • Light fixtures and lighting installation • Roof repair • Plumbing repair • Foundation repair • Built-in fixture construction • Floor covering and installation • Painting, painting, and more painting (Johnny's Place walls were bright blue, dark blue, black, orange and pink with painted palm tress and topless women) Finishing Category Further breakdown of costs formerly mentioned: Electrical: includes wiring with eosed. conduit to baclilght sigh and d e4" sconces Planters Outdoor Sign Description Following is a description of the proposed outdoor sign: "...cast aluminum letters per Lightsource logo style. The word 'Lightsource' will be in upper and lowercase, scaled to 14 inches for uppercase. The words 'creative communications' will be in all lowercase and scaled to 7 inches. All lettering shall have a mill or brushed finish. Letters shall be installed individually on the north wall and illuminated indirectly (i.e. backlit to form halo behind solid letterforms, not individually illuminated letters)." I look forward to seeing you this Thursday. Please call if you need anything before then. Best regards, Lisa Malmquist Co-owner DOWNTOWN DEVELOPMENT ddoAUTHORITY TO: DDA Board of Directors FROM: Chip Steiner DATE: November 30, 2004 RE: Mason Street Parking Ramp Proposal The Board has previously considered the concept of adding a one -level deck to the Mason Street Parking Lot as proposed by Bill Coulson, developer of the Cortina project. Below are terms that staff believes should govern this project: 1. Lease the air rights for $1/year. 2. Lease to run for 30 years. 3. At the expiration of the lease, ownership of all improvements transfer to the DDA (or the City if there is no DDA) at no cost. 4. Development of the deck must fulfill City requirements for lighting, drainage, access, and any other reasonable criteria. 5. An agreement with the City for maintenance and parking enforcement must be executed prior to construction. 6. At the sole discretion of the DDA, it may contribute funds to the development of the deck that enable a third level to be added to the structure at a future date. The decision to do so will be made by the Authority in a timely manner so that construction of the project is not delayed (see attached estimate for upgrading foundations provided by The Architect's Studio). 7. The Authority reserves the right to review the facades of the garage. Any improvements to the facades proposed by the DDA will be paid for by the Authority but only after the City has approved the project (in other words, the City and the developer must reach an agreement on fagade design prior to the Authority proposing additional improvements). Staff is requesting Board input on the terms. Any adjustments will be incorporated in the legal documents necessary to allow the project to proceed. 19 Old Town Square Suite 230 Fort Collins, Colorado 80624 • teli 970.484.2020 • far: 970,484.2069 tr To: Chip Steiner DDA Project: Mason Street Parking Deck Date: Wednesday, November 24, 2004 Re: costs Project No.: ;A memo From: Carr Bieker Sent Via: Fax Fax No.: 420-0537 No. of Pages: 1 CC: Bill Coulson Attachments: Chip, The following are estimated costs to DDA associated with designing and constructing foundations and upper structure attachments which anticipate a future phase addition to the initial structure: Carr Bieker 1. Additional construction costs for foundation and pre -cast concrete attachments. $35,000.00 2. Additional architectural/structural fees: $ 3,000.00 TOTAL $38,000.00 Macintosh HD:Users:robadsteinecLibmry:MaiI:POP- steinco®frii.com@mail fnicom:IN80Kmbox:Mason Street PaMing.mim Architecture eetWO tmnsmittal DDA_11_24_Nd. Planning 151 West Mountain Avenue Fort Collins, Colorado 80524 970-482-8125 FAX 970-482-8450 DOWNTOWN DEVELOPMENT AUTHORITY TO: DDA Board of Directors FROM: Chip Steiner DATE: November 30, 2004 RE: Letter to Design Community Below is a draft letter addressing design of projects that involve Authority funds. With board approval it will be sent to the area architects, planners, and engineers. Dear: Over the past 20 years downtown Fort Collins has seen many wonderful additions to the built landscape. Coupled with the terrific tenants who occupy these buildings, the central business district has enjoyed a renaissance that is perhaps unequaled in Colorado. The Downtown Development Authority has participated in much of the redevelopment through its ability to apply tax increment financing to private projects. Conditions have improved to the point that the Authority believes its funds should be used to encourage as much diversity in design and use as possible. Toward that end, the DDA would like to make one suggestion and two requests. The Suaeestion. The majority of DDA funding goes to fagade improvements. The DDA asks that developers and the design community anticipating the use of tax increment funds to include Authority staff as early as possible in the design process. This will permit the DDA to give some direction in fagade design and help to avoid lengthy debate at Board of Director hearings. Two Requests. 1. Diversity in design. The DDA is looking for design diversity and is especially interested in considering projects that incorporate novel design approaches. This means it is willing to consider projects that risk deviating from more traditional and historic schools of design. The one constant the Authority looks for is a very strong pedestrian friendly and pedestrian -interesting design. 2. Quality. Perhaps the most distinguishing feature of any older central business district is the quality of materials and design used in building architecture. To the extent that DDA funds are used for fagade improvements, it is requesting that its 19. Old Town Square Suite 230 Fort Collins, Colorado 80524 • tel: 970.484.2020 • fax: 970.484.2069 funds be used to upgrade the quality of materials and design in a way that clearly differentiates the downtown environment from new developments in suburban locations. Exterior Insulation Finishing Systems (EIFS), veneers, fake mullions, etc. are OK in limited areas but the Authority asks that their use be minimized, at least on those projects where it is being asked to provide funds. The DDA understands that the owners of projects control style and usually work with tight budgets. The Authority is simply asking that consideration be given to diversity and creativity in design and to the use of high quality materials wherever possible and especially in those instances where DDA funding is being requested. Thanks. Sincerely,