HomeMy WebLinkAboutDowntown Development Authority - Minutes - 07/01/2004DOWNTOWN DEVELOPMENT AUTHORITY
REoULAR DIRECTORS' MEETING
MINUTES OF JULY 1. 2004
REGULAR MEETING_
THE BOARD OF DIRECTORS OF THE DOWNTOWN DEVELOPMENT AUTHORITY MET IN REGULAR
SESSION AT 7:30 A.M. ON JULY 1, 2004 IN Tie MEETING ROOM AT HOME STATE BANK LOCATED
AT 303 EAST MOUNTAIN AVENUE, FORT COLLINS, CO 80524.
PRESENT Kim JORDAN, CHAIR
STEVE TAYLOR, VICE CHAIR
JASON MEADORS. SECRETARY/TREASURER
WRY BRAYTON
CAREY HEWITT
BILL SEARS
JACK WOLFS
LARRY STROUD
ABSENT BILL BERTSCHY
STAFF ROBERT STEIN". EXECUTIVE DIRECTOR
LINDA GuLA
LUCIA LILEY, COUNSEL
GUESTS DAINN ATTEBERRY
STEVE SHRADER
PALIA EDWARDS
MIKE POWERS
JEANNE SHOAFF
KIN ALBRECHT
RYAN HOUDEK
KERRY GALLANT
MYRNE WATROUS
CALL TO ORDER MS. JORDAN CALLED THE MEETING TO ORDER AT 7:30 A.M. ROLL CALL WAS TAKEN.
APPROVAL OF MR. MEADORS MOVED TO APPROVE THE MINUTES OF JUNE 3, 2004. SECONDED BY MR. SEARS
MINUTES AND PASSED UNANIMOUSLY.
MELTING POT MR. STEINER PRESENTED BACKGROUND INFORMATION ON THE SITE AT 334 EAST MOUNTAIN
AVENUE STATING IN 2002 THE BOARD APPROVED $40,060 TOWARD REDEVELOPMENT OF THIS
PROPERTY, AT THE TIME. IT WAS GOING TO BE A NIGHTCLUB CALLED RHYTHMS. THAT MONEY WAS
INCLUDED IN THE LATEST BOND ISSUE SO THE FUNDS ARE AVAILABLE. THE PROPERTY IS NOW
BEING LEASED BY THE OWNERS OF THE MELTING POT FRANCHISE. THE TOTAL COST OF THE
PROJECT IS ESTIMATED AT $ 1 ,014, 1 41 . THE FRANCHISE OWNERS ARE REQUESTING $70.000
FROM THE AUTHORITY. STAFF SUPPORTS THE REOUEST.
JULY 1, 2004
DDA MINUTES
PAGE 2
MR, RYAN HOUDEK AND MB. KERRY GALLANT, MELTING POT FRANCHISE OWNERS, WERE AVAILABLE
FOR QUESTIONS. MR. HOUDEK STATED THE COSTS HAVE BEEN MUCH HIGHER THAN ESTIMATED.
THE PLANS INCLUDE REDOING THE CONCRETE. ETCHING INTO THE CONCRETE, AWNINGS, SIGNAGE
AND A MASONRY FRONT INCLUDING SOME NEW WINDOWS AND OVERHANGS.
DISCUSSION AMONG BOARDMEMBERS FOCUSED AROUND THE USE OF MATERIALS ON THE EXTERIOR
FAgA.DE, THERE WERE QUESTIONS AND CONCERNS ABOUT THE USE OF FAUX STONE INSTEAD OF
REAL STONE OR BRICK. THE CONCENSUS MONO BOARDMEMBERS WAS THAT THERE WOULD BE
SUPPORT TO GIVE MORE MONEY TO THIS PROJECT IF REAL STONE OR' BRICK WERE USED CM THE
FA;ADE INSTEAD OF FAUX MATERIALS. MR. HEWITT STATED HE WOULD APPRECMTAE HAVING THE
ARCHITECT COME TO EXPLAIN THE DIFFERENCE IN COST FOR FAUX VERSUS REAL MATERIALS.
(NOTE: MR. HOUDEK AND MS. GALLANT STATED THEY WOULD CONTACT THE ARCHITECT TO SEE IF
HE WOULD BE AVAILABLE TO PRESENT INFORMATION LATER AT THIS MEETING.)
LATER IN THE MEETING MR. DAVID CRESS, ARCHITECT WITH RB +B, WAS AVAILABLE TO ANSWER
QUESTIONS. MR, STEINER STATED THE QUESTION ON THE TABLE WAS WHAT WOULD R TAKE TO
UPGRADE FROM FAUX MATERIALS TO REAL MATERIALS OR SHOULD IT EVEN BE CONSIDERED.
DISCUSSION ENSUED WITH BOARDMEMSERS AND MR. HOUDEK AND MR. CRESS CONCERNING
MATERIALS AND COSTS AND THE COMPATIBILITY OF MATERIALS. AFTER THE DISCUSSION, MS.
JORDAN STATED IT FELT LIKE THERE WERE TOO MANY UNKNOWNS AND IT WOULD BE BETTER TO ASK
THEM TO COME BACK. MR, HOUDEK STATED THAT THE RISK TO THE PROJECT BY GOING AWAY FOR A
MONTH WOULD BE SIGNIFICANT.
MR. STROUD STATED, BREAKING FOR HIMSELF, HE WOULD BE WILLING TO SPEND MORE THAN WHAT
THE TAX INCREMENT WOULD SUPPORT IF WE COULD GET SOMETHING NICER. MS. BRAYTON
CONCURRED.
MR. STEINER SUGGESTED SCHEDULING A SPECIAL MEETING OR ASSIGN THE DECISION TO THE
EXECUTIVE BOARD.
MS. BRAYTON MOVED TO CALL A SPECIAL MEETING OF THE BOARD ON JULY 8. 2004 AT 7;30
A.M, TO RECONSIDER THE REQUEST. SECONDED BY MR, TAYLOR AND PASSED UNANIMOUSLY.
SCHRADER OIL MR. STEINER INDICATED SCHRADER OIL CO. Ig PROPOSING TO BUILD A NEW OFFICE
REDEVELOPMENTBUILDING AND TRUCK WASH ON PROPERTY HE OWNS ALONG THE 100 BLOCK OF
WILLOW STREET. THE EXISTING BUILDING WILL BE DEMOLISHED. BRAD MARCH, ESQ., WHO
DRAFTED THE PROPOSAL BEFORE THE BOARD, HAS CALCULATED THAT THE OFFICE IMPROVEMENT
WILL CREATE ABOUT $23,600 IN ANNUAL TAX INCREMENT BASED UPON CONSTRUCTION COST OF
$800, 000. IF THE TRUCK WASH IS INCLUDED, THE INCREMENT GOES UP TO $28.800
ANNUALLY. THE REQUEST BEFORE THE DDA IS FOR $ 165,000 STAFF SUPPORTS AN
INVESTMENT OF $ 1 42,000
MR. MARCH PRESENTED INFORMATION ON THE PROPOSAL AND NOTED THAT IN THE EARLY 1 9OO'S
SOMEONE PUT A MANUFACTURED GAS PUNT ON THE PROPERTY WHICH CAUSED SOME
POLLUTION ISSUES. HE STATED NOT MUCH ATTENTION HAS BEEN PAID TO THIS PROPERTY FOR
OUITE SOME TIME AND BECAUSE OF THE CONTAMINATION, THE TAX VALUE MAY COME DOWN. MR.
SCHRADER NOTED THEY ARE BUILDING A STEEL FRAME BUILDING WITH A BRICK AND STUCCO
EXTERIOR, SIMILAR TO THEIR CONVENIENCE STORE ON NORTH COLLEGE.
MS. ULEY QUESTIONED IF THEY INTENDED TO FILE. AN ABATEMENT AND IF $O, THE DDA'S STANDARD
AGREEMENT HAS A COVENANT THAT STATES YOU CANNOT SEEK TO REDUCE TAXES IN ANY FORM.
MR. MARCH STATED THE NATURE OF THE ABATEMENT IS THAT THERE HAVE BEEN ENVIRONMENTAL
PROBLEMS ASSOCIATED WITH THIS PROPERTY AND THEY HAVE PAID SUBSTANTIAL AMOUNTS ON
REMEDIATNG. AS A RESULT, THE PROPERTY IS SUBSTANTIALLY LESS VALUABLE, AND THEY SHOULD
BE ENTITLED TO A REDUCTION IN VALUE.
MS. BRAYTON ASKED ABOUT THE TRUCK WASH. MR. SCHRADER STATED THE TRUCK WASH IS AN
ADD -ON TO THE MAINTENANCE BUILDING THAT ALLOWS THEM TO WASH THEIR OWN VEHICLES.
MB. BRAYTON ASKED FOR CLARIFiCATON FROM STAFF ON WHY WE HAVE NUMBERS WRH AND WITH-
OUT THE TRUCK WASH. MR, STEINER STATED THE TRUCK WASH WOULD ADD TAX INCREMENT.
HE DIDN'T THINK THE DDA WOULD CONSIDER INVESTING MONEY IN A FACYADE. His CALCULATION
OF $500,000 WAS BASED ON BOTH BUILDINGS, HE SUGGESTED THAT IF THE BOARD APPROVES
THIS PROJECT THEY MAY WANT TO MAKE IT CONTINGENT ON TAKING THIS PROJECT TO THE
COUNTY ASSESSOR TO GET AN ESTIMATE.
JULY I , 2004
DDA MINUTES
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MR. STROUD MOVED TO APPROVE THE AMOUNT OF MONEY FOR THE PUBLIC IMPROVEMENTS
AND FACJADE THAT TAX INCREMENT IN SIX YEARS WOULD SUPPORT. SECONDED BY MS. BRAYTOW
MR. STROUO STATED HE WOULD BE WILLING TO GIVE EVEN MORE MONEY IF ADDITIONAL
ENHANCEMENTS WERE ADDED TO LANDSCAPING, SIDEWALK, AND PUBLIC IMPROVEMENTS AT SOME
FUTURE POINT.
KIM NOTED THERE WAS A MOTION ON THE FLOOR, AND NOTED LARRY'S COMMENT TO CONSIDER
DOING MORE UPGRADES. THE MOTION PASSED UNANIMOUSLY,
CHAMBER ENVIRON-
MR. HENDEE WAS NOT PRESENT SO THIS ITEM WAS TABLED.
MENTAL COMMfTTEE
MUSEUM OF
MR. STEINER STATED THERE WAS AN ADDITION TO THE AGENDA. LAST WEEK HE HAD MET WITH MIKE
CONTEMPORARY ART
POWERS. WHO IS ON THE BOARD OF DIRECTORS OF MOCA, ABOUT A PROPOSAL FROM MOCA.
(MOCA)
MIKE POWERS, PAULA EDWARDS, AND JEANNE SHOAFF WERE AVAILABLE TO ANSWER QUESTIONS.
MR, $MINER STATED THERE IS PROPERTY AROUND MOCA THAT THE MUSEUM WOULD LIKE
TO DONATE TO THE DDA AS AN EASEMENT AND THEREBY ALLOW THAT LAND TO BE ADDED INTO THE
DESIGN PROCESS FOR THE REDEVELOPMENT OF OAK STREET PLAZA. THERE IS NO COST TO THE
DDA, IT IS SIMPLY THE GRANTING OF THE BASEMENT ON THAT LAND,
MR. POWERS PRESENTED AN OVERVIEW OF WHAT WAS BEING PROPOSED. THEY ARE SUGGESTING
THAT MR. STEINER. MR, POWERS AND MS. LILEY OE TOGETHER TO COME UP WITH A CONTRACT
THAT WOULD THEN COME BACK TO THE DDA BOARD. THAT WOULD ENABLE GOVERNMENTAL MONEY
BE SPENT TO MERGE THAT PIECE OF LAND INTO THE DESIGN OF THE REDEVELOPMENT OF OAK
STREET PLAZA.
MR, TAYLOR ASKED IF THE EASEMENT WAS ONLY ON THE ONE SIDE OF THE BUILDING THAT IS
FACING THE PLAZA OR WOULD THEY BE ASKING US TO TAKE THE PIECE THAT IS FRONTING ON
COLLEGE AS WELL. MR. POWERS STATEG THEY OERNIETLY ARE ASKING FOR THE PIECE ON THE
OAK STREET SIDE BECAUSE THAT IS WHERE THE DESIGN WILL BE DONE. HE STATED HE DIDN'T
THINK THE CITY IS PLANNING TO MOVE THE DESIGN AROUND TO THE FRONT OF THE BUILDING, MR.
ATTEBERRY STATED HE THOUGHT BOTH PIECES SHOULD BE CONSIDERED - THE OAK STREET PIECE
AND THE COLLEGE AVENUE PIECE. HE STATED HE WOULD BE OPEN TO EVALUATING WHETHER THE
COLLEGE PIECE MAKES SENSE. MR, STEINER STATED MOM A DESIGN POINT OF VIEW IT MAKES
TOTAL SENSE TO AT LEAST WRAP IT AROUND THE STAIRS ON THE COLLEGE SIDE,
MR. SEARS ASKED WHY NOT 00 ALL THE WAY ALONG ON THE FRONT OF THE EAST SIDE.
MS. SHOAFF STATED R WOULD MAKE MORE SENSE TO GO ON THE FULL EAST SIDE. MS. EDWARDS
STATED THE BOARD HAD DISCUSSED THIS POSSIBILITY AND IS OPEN TO THIS IDEA IF THE DDA WANTS
TO CONSIDER R.
JASON MOVED TO SUPPORT THE CONCEPT OF MOCA PROVIDINQ AND EASEMENT TO THE DDA FOR
WHATEVER THE DDA DEEMS APPROPRIATE, SECONDED BY MR, HEWITT AND PASSED
UNANIMOUSLY,
MR, $MINER STATED HE THOUGHT WE SHOULD ACCEPT THE EASEMENT IF THEY WANT TO GIVE IT TO
US, HE ALSO STATED HE WOULD LIKE TO AT LEAST CHAT BRIEFLY WITH THE CITY ABOUT THIS
BECAUSE ACCEPTING THE EASEMENT HAS IMPLICATIONS IN TERMS OF MAINTENANCE AS WELL AS
REDESIGN.
EXECUTIVE DIRECTOR MS. JORDAN STATED MR. STEINER'S CONTRACT IS UP FOR RENEWAL AND THE EXECUTIVE
CONTRACT COMMITTEE IS SUGGESTING THAT WE EXTEND HIS CONTRACT FOR TWO MONTHS TO ALLOW US TIME
TO GET A REVIEW DONE.
MR. WOLFE MOVED TO EXTEND MR. STEINER'S CONTRACT FOR TWO MONTHS TO ALLOW TIME MR
A REVIEW BY THE BOARD, SECONDED BY MR. HEWITT AND PASSED UNANIMOUSLY.
JULY 1, 2004
DDA MINUTES
PAGE 4
COMMUNITY CAPITAL THIS ITEM WILL BE SCHEDULED FOR A LATER DATE.
PROGRAM
ADJOURN THERE BEING NO FURTHER BUSINESS, THE MEETING WAS ADJOURNED AT 9: 10 A.M.
SON MEADORS, SECRETARY