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HomeMy WebLinkAboutDowntown Development Authority - Minutes - 06/01/2006DOWNTOWN DEVELOPMENT AUTHORITY REGULAR DIRECTORS' MEEnNo STEVE TAYLOR, CHAIR 221-0524 (W) KURT KASTEIN, COUNCIL LIAISON 223-0425 (W) LINDA GULA, STAFF LIAISON 484-2020 (W) MINUTES OF JUNE 1, 2005 REGULAR MEETING THE BOARD OF DIRECTORS OF THE DOWNTOWN DEVELOPMENT AUTHORITY MET IN REGULAR SESSION AT 7:30 A.M. ON JUNE 1, 2005 IN THE MEETING ROOM AT HOME STATE BANK LOCATED AT 303 EAST MOUNTAIN AVENUE, FORT COLLINS, CO 50524. PRESENT STEVE TAYLOR, CHAIR CAREY HEwm, SECRETARY/TREASURER MCCABE CALLAHAN KURT KASTEIN PATTY SPENCER ABSENT GEORGE BREUG KIM JORDAN WILLIAM SEARS JACK WOLFE STAFF ROBERT STEINER, DDA EXECUTIVE DIRECTOR MATT ROBENALT, DDA PROJECT MANAGER LINDA GULA, DDA STAFF LUCIA ULEY, COUNSEL GUESTS DARIN ATTEBERRY, CITY MANAGER, CHUCK SEEST, CITY FINANCE DIRECTOR, KATHY CARDONA, DAVID SHORT, HOWARD PERKO. CHRIS RAY, CLARK MAPES. JEAN HELBURO, MARTY HEFFERNAN, BLUE HAVATER CALL 70 ORDER MR. TAYLOR CALLED THE MEETING TO ORDER AT 7:35 A.M. ROLL CALL WAS TAKEN, APPROVAL OF MINUTES MR. HEW= MOVED TO APPROVE THE MINUTES OF MAY 4, 2005, SECONDED BY MR, KASTEIN AND PASSED UNANIMOUSLY. 145 E. MOUNTAIN - MOUNTAIN AVENUE MARKETPLACE MR. STEINER STATED THE BOARD HAD REVIEWED THIS PROJECT LAST MONTH, BUT IT WAS UNCOMFORTABLE WITH THE INTERIM PLANS PRESENTED BY MR. CHRIS RAY, OWNER. THE BOARD HAD SUGGESTED ENHANCING THE FACADE ON THE EXISTING BUILDING AND RECONSIDER PLANS FOR THE KIOSKS THAT HAD BEEN PROPOSED ALONG THE WESTERN EDGE OF THE PROPERTY. HE STATED MR. RAY HAS RESUBMITTED THE PROJECT AND BRICK AND AWNINGS HAVE BEEN ADDED TO THREE OF THE FACADES ON THE EXISTINO BUILDING. BECAUSE THE DDA WILL BE SEEKING A GRANT TO MAKE IMPROVEMENTS TO THE ALLEY RUNNING NORTH - SOUTH ON THE WEST EDGE OF THE SITE, MR, RAY HAS DECIDED NOT TO BUILD THE KIOSKS, HE PLANS TO CONSTRUCT A NEW BUILDING ON THE PARKING LOT AT SOME FUTURE POINT. THE REQUEST TO THE DDA IS FOR $ 1 70,000. STAFF PRESENTED THE FOLLOWING OBSERVATIONS: THE ORIGINAL COST OF IMPROVEMENTS TO THE EXISTING BUILDING WAS $576. 100, THE CURRENT ESTIMATE HAS GONE UP BY $ 1 72,400, AN INCREASE OF ABOUT 30 PERCENT. MR. RAY ATTRIBUTES THE INCREASE TO "MISSED CATEGORIES RECENTLY DISCOVERED, ENGINEERING ISSUES, MATERIAL COST INCREASES, EXTRA BRICK AND THE AWNINGS. DDA BOARD MINUTES PAGE 2 JUNE 1, 2006 2. ALTHOUGH THE KIOSKS ARE NO LONGER A PART OF THE PROJECT, THE FUTURE VALUE HAS NOT CHANGED. THAT I5, THE COMPLETED PROJECT WAS VALUED AT $2, 1 79,300 WITH THE KIOSKS, AND REMAINS AT THAT LEVEL WITHOUT THE KIOSKS. NOR HAS THE ESTIMATED AMOUNT OF TAX INCREMENT CHANGED (WAS $34,754 AND STILL IB $34,754). 3. STAFF'S REVIEW OF THIS PROJECT LAST MONTH DOUBTED THE 240 PERCENT INCREASE IN BUILDING VALUE RESULTING FROM THE PROPOSED IMPROVEMENTS. STAFF ALSO SUGGESTED THAT INCREMENT WOULD BE GENERATED BY THE COMPLETED PROJECT FOR FOUR YEARS, NOT FIVE. BOTH OF THESE ISSUES REMAIN. 4. THE CHANGES MADE TO THE FACADES HAVE SIGNIFICANTLY IMPROVED OVER THE ORIGINAL PROPOSAL. MR, RAY TALKED ABOUT THE PROJECT AND ALSO WHAT MIGHT HAPPEN TO THE ALLEY. HE STATED HE WILL RUN INTO SIGNIFICANT COSTS FOR THE RENOVATION BECAUSE OF BUILDING STRUCTURE, ENGINEERING COSTS, DEMOLITION COSTS, AND FOUNDATION LABOR REPAIRS. HE STATED THAT TAILGATE TOMMY's LEASE 15 UP IN SEPTEMBER. HE WILL BE NEGOTIATING WITH THEM ABOUT THE USE AND THE KIND OF RESTAURANT HE ENVISIONS IN THIS SPACE. HE WENT ON TO STATE THAT BASED ON DEMAND IN THE AREA, HE MAY BUILD A SECOND BUILDING IN THE FUTURE. THE BOARD DISCUSSED THE ASSESSED VALUATION ISSUES. THERE WERE QUESTIONS ABOUT THE KIND OF BUSINESS AND TENANT USE, BUILDING MATERIALS AND SIGNAGE ISSUES. MR. KASTEIN MOVED TO SUPPORT THE HARD COSTS OF PROJECT UP TO $76,275. SECONDED BY MR, HEWITT AND PASSED UNANIMOUSLY. SEARS-TROSTEL BUILDING MR. STEINER REVIEWED THE PACKET INFORMATION FOR THIS PROJECT. HE STATED THIS PROJECT 15 LESS A RENOVATION PROJECT AND MORE A COMPLETELY NEW BUILDING WITH NEW FOOTINGS, FOUNDATIONS, AND VERTICAL INFRASTRUCTURE, HE STATED THIS PROJECT HAS MERIT: I . IT 15 A SIGNIFICANT RENOVATION IN A DOWNTOWN DISTRICT THAT IS IN NEED OF REDEVELOPMENT; 2. THE IMPROVEMENTS BEING MADE WILL BRING THE STRUCTURE UP TO CURRENT BUILDING CODES; 3. THE DESIGN 15 ATTRACTIVE. STAFF HAD REOUESTED THE OWNER REPLACE THE CAST STONE ELEMENTS WITH REAL STONE. HOWEVER, THE PRODUCT THAT WILL BE USED IS APPARENTLY THE BEST AVAILABLE; 4. GREEN ELEMENTS IN THE CONSTRUCTION 00 BEYOND WHAT IS REQUIRED; 5. THE ADDITION OF 26 WELL -PAYING JOBS TO THE CENTRAL BUSINESS DISTRICT 15 PARTICULARLY IMPORTANT. MR. STEINER STATED THE TOTAL ESTIMATED COSTS ARE ESTIMATED AT $ 1 , 1 86,530. STAFF STRONGLY SUPPORTS A DDA INVESTMENT IN THIS PROJECT. IT RECOMMENDS A FAgAOE ACQUISITION OF $ 1 75,000 WHICH IS ROUGHLY 1 5 PERCENT OF THE TOTAL ESTIMATED PROJECT COST. MR, HOWARD PERKO, BUILDING OWNER/OEVELOPER PRESENTED AN OVERVIEW OF THE PROJECT. HE STATED THE TENANT WOULD BE CTL/iMOMPSON, INC. OF WHICH HE IS THE DIVISION MANAGER, MR. PERKO TALKED ABOUT THE LINDEN STREET FAS.A.OE, THE BUILDING MATERIALS BEING USED, LANDSCAPING, PARKING SPACES IN THE BACK OF THE BUILDING, JOB CREATION AND JOB OPPORTUNITIES, BOARD COMMENTS INCLUDED QUESTIONS ABOUT THE CAST STONE AND WHY IT WAS BEING USED (NOT REAL STONE), AND THE TIMEFRAME OF THE PROJECT, MR. HEWITT MOVED TO SUPPORT THE 35 1 LINDEN (SEARS-TROSTEL) PROJECT UP TO $ 1 75,000. SECONDED BY MR. CALLAHAN. MR. TAYLOR EXPRESSED CONCERNS ABOUT HE PRE -CAST STONE AND WHETHER IT HAS ENOUGH SUBSTANCE TO LAST LONG TERM. MR. STEINER SUGGESTED THE POSSIBILITY OF GETTING COST DIFFERENTIALS, MR. PERKO STATED CUT STONE WOULD NOT BE AVAILABLE IN TIME. HE WENT ON TO NOTE THE "SIGNATURE STONE" 15 PRETTY SIGNIFICANT AND IS THE BEST ON THE MARKET. THE MOTION PASSED UNANIMOUSLY. BOND AUTHORIZATION RESOLUTION MR. STEINER STATED DURING THE DISCUSSIONS ON FUNDING BEET STREET, BOND COUNSEL NOTED THAT THE ORIGINAL BALLOT LANGUAGE AUTHORIZING THE USE OF TAX INCREMENT FINANCING LIMITED ITS APPLICATION TO CAPITAL PROJECTS. THERE IS NO SUCH RESTRICTION IN EITHER THE STATE ENABLING LEGISLATION NOR IN THE DDA'S PLAN OF DEVELOPMENT, THE ORIGINAL BOND ORDINANCE, THEREFORE, NEEDS TO BE AMENDED AND APPROVED BY THE QUALIFIED ELECTORS WITHIN THE DDA DISTRICT. DDA BOARD MINUTES PAGE 3 JUNE 1. 2008 THE AUTHORITY IS ALSO APPROACHING THE $25 MILLION BOND CEILING ESTABLISHED BY THE ORIGINAL BALLOT LANGUAGE. IN ORDER TO ALLOW THE DDA TO MAKE USE OF THE ANTICIPATED INCREMENT THROUGH 20 1 I AND BEYOND IF AN EXTENSION TO THE DISTRICT IS APPROVED, THE CEILING NEEDS TO BE RAISED AS WELL. STAFF IS RECOMMENDING THAT IT BE CHANGED TO $75 MILLION (NET INCREASE OF $50 MILLION) HE STATED CITY COUNCIL MUST CALL FOR THE ELECTION. HE STATED RESOLUTION 2-2005 INCLUDED IN THE PACKET MATERIALS MAKES THAT RECOMMENDATION TO COUNCIL. THE BOARD DISCUSSED THE MARKETING NEEDED FOR THE CAMPAIGN FOR THE ELECTION AND HOW TO 00 ABOUT THE CAMPAIGN. MR. STEINER SUGGESTED THE NEED TO HAVE A PRIVATE GROUP RUN THE CAMPAIGN, HE NOTED THAT THE CLERK'S OFFICE IS SUGGESTING HAVING JUST ONE POLLING PLACE FOR VOTERS IN THE DISTRICT. THE BOARD ALSO DISCUSSED AT LENGTH DOLLAR AMOUNT AND WHAT WOULD BE A SUSTAINABLE AMOUNT FOR THE NEXT 3O YEARS. MR, HEWITT MOVED TO APPROVE RESOLUTION 2-2006 WITH THE AMOUNT BE CHANGED UP TO $ 1 50 MILLION WITH APPROVAL BASED ON REVIEW AND EDITING CHANGES BY MS. LILEY. SECONDED BY MR. KASTEIN AND PASSED UNANIMOUSLY. DOWNTOWN BUILDING HEIGHTS MR. CLARK MAPES, CITY PLANNER, PRESENTED INFORMATION CONCERNING "DOWNTOWN ZONE DISTRICT REGULATIONS FOR TALLER BUILDINGS." HE STATED AS PART OF SEMI-ANNUAL CHANGES TO THE LAND USE CODE, RECOMMENDATIONS FROM THE 2004 DOWNTOWN STRATEGIC PLAN (OSP) FOR BUILDING HEIGHT, MASSING, AND COMPATIBILITY, ARE BEING PROPOSED FOR INCORPORATION INTO THE DOWNTOWN ZONE DISTRICT. HE STATED CURRENT STANDARDS ARE NOT EFFECTIVE, NEED TO BE CIARIPIED, AND NEED TO BE CONSISTENT. THE PROPOSED CHANGE WOULD DIRECTLY IMPLEMENT THE RECOMMENDATIONS OF THE 2004 DOWNTOWN STRATEGIC PLAN IN THIS REGARD. MR. MAPES WENT ON TO NOTE THE CENTERPIECE OF THE PROPOSED CHANGE 15 A BLOCK BY BLOCK MAP OF MAXIMUM HEIGHT LIMITS, STANDARDS DESCRIBE THE HEIGHT LIMITS AS APPROXIMATE, TO CONVEY A SCALE OF BUILDING RATHER THAN FIXED POINTS IN SPACE. THERE ARE ALSO DESIGN STANDARDS FOR MITIGATNG THE BULK OF TALLER BUILDINGS (OVER 3 STORIES) WITH SETBACKS AND A PEDESTRIAN -ORIENTED BASE PORTION, HE STATED THE ITEM IS SCHEDULED FOR CITY COUNCIL AT THEIR REGULAR TUESDAY, JUNE 6 HEARING AND HE WAS HOPING FOR A RECOMMENDATION FROM THE DDA BOARD BEFORE THAT MEETING. AFTER DISCUSSION IT WAS AGREED THAT GENERALLY, THE BOARD SUPPORTS THE PROPOSED CHANGES, IT SPECIFICALLY SUGGESTED CLARIFYING THE SETBACK CRITERIA IN THE CANYON AVENUE/CIVIC CENTER SUB -DISTRICT. THE BOARD THOUGHT DEVISING MORE EASILY UNDERSTOOD SETBACK REQUIREMENTS WOULD HELP GUIDE DESIGNERS. IN THE OLD CITY CENTER THE SETBACK CALCULATION IS CONCISELY DEFINED. THE BOARD SUGGESTED SOMETHING MORE PRESCRIPTIVE THAN THE PROPOSED LANGUAGE CHANGE, BUT PERHAPS NOT AS PRESCRIPTIVE AS THE OLD CITY CENTER FORMULA. THE BOARD ALSO MADE TWO OTHER OBSERVATIONS THAT RELATE TO THE CODE ITSELF BUT NOT TO THE CHANGES BEING RECOMMENDED AT THIS TIME BY CITY STAFF, THESE WERE; I . CHANGING LANGUAGE IN THE SPECIAL PROVISIONS SECTION THAT CURRENTLY RESTRICTS THE LOCATION OF "MAJOR CIVIC" STRUCTURES TO THE CANYON AVENUE/CIVIC CENTER SUB -DISTRICT. THE DDA BOARD BELIEVES CIVIC STRUCTURES MAY BE APPROPRIATE FOR OTHER LOCATIONS IN THE DOWNTOWN. NOTE THAT THE NEW AZTLAN COMMUNITY CENTER IS NOT WITHIN THE CANYON AVENUE(CIVIC CENTER SUB -DISTRICT. 2. ALLOWING BUILDIN05 GREATER THAN FOUR STORIES IN SOME LOCATIONS OF THE OLD CITY CENTER CORE SUB -DISTRICT SUCH AS PARTS OF REMINGTON STREET, WHICH ALREADY HAS THE SEVEN -STORY DMA PLAZA, THE SOUTH SIDE OF EAST MOUNTAIN EAST OF REMINGTON WHERE REDEVELOPMENT NEEDS TO BE ENCOURAGED, AND IN THE AREA BETWEEN JEFFERSON AND THE POUDRE RIVER. THE BOARD SUGGESTS TALLER BUILDINGS BE CONSIDERED FOR THESE AREAS DEPENDING ON DESIGN AND SENSITIVITY TO MITIGATING NEGATIVE IMPACTS. THE BOARD SUGGESTED DOING A 2-PAGE MEMO TO CITY COUNCIL OUTLINING THE DDA'S POSITION HOLIDAY LIGHTS MR. STEINER STATED THE EXISTING HOLIDAY LIGHTING SYSTEM IS PRONE TO FAILURE AND BECAUSE IT TENDS TO DRAW MORE POWER THAN IS AVAILABLE, THE DOWNTOWN BUSINESS ASSOCIATON IS CONSIDERING REPLACING THE EXISTING LIGHTS WITH LED STRANDS. REGULAR STRANDS COST $2.80 EACH; LED STRANDS COST $ 1 2.00 EACH. THIS DOES NOT INCLUDE INSTALLATION. MR. STEINER STATED THE LED LIGHTS HAVE A LONGER LIFE AND DO NOT PULL AS MUCH ENERGY WHICH COULD PROVIDE SIGNIFICANT SAVINGS, STAFF IS SUGGESTING A ONE THE DDA INVESTMENT OF $ 100,000 TO PURCHASE LIGHTS, MR. STEINER STATED THE CITY IS BETTER EQUIPPED TO TAKE OVER THE MANAGEMENT OF THE LIGHTS (INSTALLATION AND REMOVAU. HE SUGGESTED THE DBA WOULD CONTRIBUTE $ 1 5,000 ANNUALLY TO THE COST OF POWER. DDA BOARD MINUTES PAGE 4 JUNE 1, 2006 MR. ATTEBERRY STATED THE HOLIDAY LIGHTING ISSUE HAS BEEN A STRUGGLE. HE STATED HE LIKES THE CAPITAL PURCHASE FROM THE DDA. HE WENT ON TO STATE HE AGREES IT OUGHT TO BE LIOHT AND POWER OR FORESTRY TO MANAGE INSTALLATION AND REMOVAL OF LIGHTS. HE STATED HE WOULD LIKE TO ENSURE CONTINUED CONTRIBUTION FROM THE DBA. HE FELT THIS IS A GOOD PROPOSAL. MS. SPENCER MOVED TO APPROVE UP TO $ 100,000 FOR THE PURCHASE OF LED LIGHTS FOR HOLIDAY LIGHTING AND TO NEGOTIATE WITH THE CITY FOR THE MANAGEMENT OF INSTALLATION AND REMOVAL OF LIGHTING ANNUALLY. SECONDED BY MR. CALLAHAN AND PASSED UNANIMOUSLY. COMMUNITY CENTER UPDATE MR. MARTY HEFFERNAN AND MS. JEAN HELBURG PRESENTED AN UPDATE ON THE NORTHSIDE AZT -AN COMMUNITY CENTER. THE PRESENTATION FOCUSED ON THE SIT£ PLAN, DESIGN, PHASED PLANNING, ACCESS, AND PARKING ISSUES. THE HOPE IS TO BREAK GROUND IN OCTOBER 2006. MS. HEL5URO STATED MANY ACTIVITIES AND PROGRAMS OPERATING AT THE EXISTING YAC (YOUTH ACTIVITY CENTER) WOULD BE MOVED TO THIS FACILITY WHEN THE YAC IS CLOSED. THERE WERE QUESTIONS AND DISCUSSION ABOUT ACCESS AND PUBLIC TRANSPORTATION ACCESS TO THE CENTER. FACADE GRANT RECOMMENDATION MR, STEINER STATED THE COMMITTEE FOR THE FACSADE GRANT PROGRAM WAS MAKING THE FOLLOWING RECOMMENDATION TO THE BOARD: I . FUND THE PROGRAM AT $500,000; 2. AWARD GRANTS EQUAL TO 50 PERCENT OF THE FACADE IMPROVEMENT COST UP TO A MAXIMUM OF $50,000; 3. PROJECTS ARE LIMITED TO EITHER THE GRANT PROGRAM OR THE USE OF A MF INVESTMENT, NOT BOTH: 4. CONSIDER PROJECTS ON A FIRST -COME -FIRST -SERVE BASIS; 5. SELECTION PROCESS TO BE THE SAME AS WITH ANY OTHER PROJECTS SUBMITTED TO THE DDA BOARD FOR REVIEW; G. NO PROJECT THAT HAS USED TIF IN THE PAST IS ELIGIBLE; 7. CRITERIA USED TO EVALUATE A PROJECT ARE THE SAME AS ALL OTHER PROJECTS - QUALITY MATERIALS, SENSITIVITY TO THE SURROUNDING BUILT ENVIRONMENT, PEDESTRIAN FRIENDLY. THE COMMITTEE DECIDED THAT A PROJECT WOULD NOT BE ELIGIBLE FOR BOTH THE GRANT AND TIF SINCE A TIF APPLICANT WOULD ALMOST CERTAINLY DO A FACADE IMPROVEMENT. FURTHER, THERE WOULD BE NO REASON TO SEEK A GRANT IF MORE FUNDS WERE AVAILABLE THROUGH A TIF INVESTMENT (OR, VICE VERSA, THERE WOULD BE NO REASON TO SEEK A TIF INVESTMENT IF MORE WERE AVAILABLE THROUGH A GRANT). THE COMMITTEE FELT THAT OFFERING BOTH ON A SINGLE PROJECT AMOUNTED TO DOUBLE-DIPPING, THERE WAS DISCUSSION AMONG BOARDMEMBERS ABOUT WHO QUALIFIES AND THE NEED TO FOCUS ON BUSINESSES/PROPERTIES WHO HAVE NOT PARTICIPATED IN THE PAST. MS, LILEY ASKED FOR CLARITY ON THE LANGUAGE OF #(5 AND THE INTENTION OF THE COMMITTEE. MR. HEW" STATED HE THOUGHT THE INTENTION WAS TO CREATE SOMEWHAT OF AN INCENTIVE TO THOSE PEOPLE AND BUSINESSES THAT HAVE BEEN SUPPORTING THE DDA, HAVE BENEFITED FROM THE ENHANCEMENT OF THE NEIGHBORHOOD, BUT IN A SENSE HAVEN'T BENEFITED DIRECTLY BY FIXING UP THEIR OWN STOREFRONT OR ENHANCING THE NEIGHBORHOOD THEMSELVES, HE STATED WE LOOKED BRIEFLY AT THE DOWNTOWN AND A LOT OF THE DOWNTOWN HAS RECEIVED MONEY. I GUESS WE COULD COME BACK AND REVISE THIS THING AND SAY SOMEONE IS ELIGIBLE, BUT IT REALLY WAS TRYING TO FOCUS ON THOSE PEOPLE WHO HAVE NOT BEEN PART OF THE PROCESS. MR. TAYLOR ASKED WHAT HAPPENS IF IN 1982 SOMEONE WAS GIVEN $2500, DO THEY NO LONGER QUALIFY FOR THIS? WOULD THE DDA BE ABLE TO ACHIEVE THE INTENT WITH SOME KIND OF TIME LIMIT WITHIN THE LAST 20 YEARS? MS. LILEY SUGGESTED MAKING A GENERAL RULE - THAT NO PROJECT THAT HAS USED TIF IN THE PAST IS ELIGIBLE BUT EXTENUATING CIRCUMSTANCES COULD JUSTIFY........ IT WOULD NOT BE A HARD AND FAST RULE. MR, HEWITT AGREED THAT WOULD GIVE A LITTLE MORE FLEXIBILITY, MR. CALLAHAN MOVED TO APPROVE THE FACADE GRANT PROGRAM AS PRESENTED WITH THE SUGGESTED LANGUAGE THAT NO PROJECT THAT HAS USED TIF IN THE PAST IS ELIGIBLE BUT EXTENUATING CIRCUMSTANCES COULD JUSTIFY CONSIDERATION. SECONDED BY MR. KASTEIN AND PA55ED UNANIMOUSLY. DDA BOARD MINUTES PAGE 5 JUNE 1, ZOOS OTHER BUSINESS SALES TAX UPDATE - MR. ATTEBERRY PRESENTED THE MONTHLY SALES TAX REPORT. HE STATED THE GOOD NEWS 15 THIS IS THE FIRST TIME THIS YEAR THE CITY WIDE SALES TAX IS HIGHER THAN DOWNTOWN. FOR APRIL SALES ARE SHOWING A 2.9% INCREASE FROM LAST YEAR. HE STATED RESTAURANTS AND ENTERTAINMENT ARE STILL GOOD. ADJOURN THERE BEING NO FURTHER BUSINESS, THE MEETING ADJOURNED 10:05 A.M. ��IALD CAREY HEW , SECRETARY