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HomeMy WebLinkAboutDowntown Development Authority - Minutes - 08/14/1997ddoDANTOWN � DEVELOPMENT AUTHORITY ONE WEST CONTEMPORARY ART CENTER Telephone (970) 484-2020 201 SOUTH COLLEGE AVENUE, FORT COLLINS, CO 80524 Telefax (970) 484-2069 DOWNTOWN DEVELOPMENT AUTHORITY Regular Directors' Meeting MINUTES OF AUGUST 14 1997 REGULAR FETING The Board of Directors of the Downtown Development Authority met in regular session at 7:30 a.m., August 14, 1997 in the Third Floor Conference Room at 201 South College Avenue, One West Art Center. PRESENT There were present: Kermit Allard, Chair presiding Mary Brayton, Vice Chair Jason Meadore, Secretary Greg Belcher, Treasurer Steve Slezak Chuck Wanner Larry Stroud Margaret Brown John Pitner Staffs Chip Steiner, Consultant Anne Garrison Guests: John Fischbach, Jay Hardy, Karen McWilliams, Bud Frick, Ed Stoner CALL TO ORDER Mr. Allard called the meeting to order and roll call was taken. New Board Members, Margaret Brown, Larry Stroud and John Pitner were introduced and formally welcomed. MINUTES A motion was made by Mr. Belcher to approve minutes of June 5, and July 3, together with an amended version of the minutes of May 21, 1997, This was seconded by Mr. Meadore and carried unanimously. DDA MINUTES PAGE 2 DBA MARKETING Jay Hardy, Executive Director of the Downtown Business REPORT Association, (DBA) explained that the initial campaign budget projection was $35,000. This figure comprised $20,000 from DBA, $10,000 from DDA and $5,000 (15% marketing fees assessed each DBA member.) In essence this amounted to just under $6,000. These funds were used to retain a graphic designer who created a logo which represented the many elements of downtown. The logo can be used as a 'canopy' for general advertising, or individually by the businesses. The theme is tied in with the logo of "Shop, Eat & Enjoy Downtown." A DBA produced video prepared for television was viewed. Other marketing endeavors included three billboards placed strategically around town, a monthly section in the Coloradoan called the Downtown Tab, brochures, ads in the Visitors' Guide, Style Magazine, CSU Class Schedule, all of which are targeted towards selected demographics. In addition DBA has entered into partnerships with CSU with signage, promotionals and recognition in Game Programs this Fall. A half page ad appears in the Thrifty Nickel through the end of the year. There have also been other promotionals requested by the membership such as Gallery Walk and Fashion by the Fountain, and T-Shirts sporting the downtown logo. Also, Schrader Oil has involved the DBA in its frequent fueler program which nets DBA thousands of dollars worth of television and radio commercials plus 10,000 color print pieces paid for by Schrader. OTS CANOPY Mr. Steiner introduced this topic, explaining that years before, DBA had Bought to provide a protective canopy over the stage area of Old Town Square. DDA had pledged financial support, but the project had lacked the support of the Landmark Preservation Commission. DBA is requesting $10,000 from DDA to help underwrite the project estimated at $23 - $25,000. Mr. Steiner mentioned that at this time, LPC does not have design control over the plaza, and recommended the Board consider this request, but make it contingent upon a like level of financial participation from the owners of Old Town Square. Karen McWilliams and Bud Frick both spoke to the reasons for LPL's previous stand, explaining that the only signature building in that block is behind the structure. Although Mr. Hardy has been sensitive to this and other issues by selecting transparent materials, using only two poles for support and an elevation of 9 feet, LPC would like to see a more creative way of handling this, possibly a roll up/fold away type of assembly. Mr. Stoner addressed the amount of usage the stage receives in a season and the time consumed in installation and tear down of temporary canopies and their unsightly appearance. Ms. Brayton moved to fund this project in the amount of $10,000 contingent upon like participation on the part of Old Town Square owners. This was seconded by Mr. Slezak, who offered a friendly amendment, that participation be a DBA MINUTES PAGE 3 minimum of $10,000 with matching funds from Old Town Square. That DDA review the costs relative to the approved design, with the option to revisit the issue in the event that final costs are more than anticipated. In addition, DDA will have final design approval. Mr. Wanner offered a second friendly amendment, that DDA's participation not exceed 40% of total costs. The amendments being acceptable to all parties, the motion carried unanimously. Mr. Frick requested the Landmarks Preservation Commission become a regular line item on the agenda in the interest of broader communication and update between the two entities. OTS FUNDING Mr. Steiner referenced a previous DDA Board discussion regarding the use of pledged Enterprise Zone monies to be used for improvements to Old Town Square (OTS) Plaza. At that time, the Board authorized the Chair to enter into an agreement with OTS governing the application of pledged Enterprise Zone funds, for repair/maintenance improvements for which the owners are not obligated under the Revised Implementation Agreement between the City, DDA and OTS. The Board is being asked to compare the project program submitted by OTS to the existing obligations, and determine eligible expenditures. The itemized list contained in the packets was reviewed by the Board. Mr. Steiner's recommendation was to fund all listed items through Enterprise Zone monies, with the exception of the kiosks. Mr. Stoner addressed the activity in the Plaza which has heightened, requiring additional maintenance and cleaning, and defined the purpose of the kiosks which, initially, were installed by DDA, and now need renovation. Me. Brayton made a motion to appropriate funds for the balance of 1997 in the amount of $30,000. Mr. Meadora offered a friendly amendment to state 'pending a review and approval of Item #3.' This was seconded by Mr. Slezak and carried unanimously. PERFORMING ARTS A Denver consulting firm has submitted a proposal at the CENTER request of a group of people assessing the funding for a new Performing Arts Center. Special concerns are the site for this project and the cost of the study is estimated at about $13,000. Mr. Steiner recommends funding 50% of this cost. CSU has made its decision on a proposed site, but Mr. Fischbach advised that the City is open to other options and leans toward a downtown facility. Mr. Slezak made a motion to approve 50% of the study cost up to $6,500 which was seconded by Mr. Meadora and carried unanimously. OTHER BUSINESS • DDA Social to be held at Mr. Steiner's home on August 29, 1997. Details to follow. DDA MINUTES PAGE 4 • Another date for the annual retreat will be offered to Board Members in the next week or two. The regular October Board meeting will be held as usual, and not combined with the retreat. • DDA and DBA may relocate their office in order to obtain more space. • city Manager, John Fischbach provided the Board with an update on the lingering effects of the July flood. City funds will not be affected as they relate to the Courthouse/Parking Garage projects, and much of what the City has appropriated for the repairs of bridges, roads, bike trails etc., will be refunded by FEMA. ADJOURN There being no further business the meeting adjourned at 8:55 a.m. Meadors, Secretary • ALLARD & ASSOCIATES, CPAs, P,• A Professional Corporation 201 Linden, Suite 201 Fort Collins, CO 80524-2464 (970) 482-1893 FAX (970) 482-2346 TO: DDA Board of Directors A FROM: Kermit Allard, Chairman K �t DATE: August 31, 1997 RE: Management Services for DDA In the past 18 months the Downtown Development Authority has seen its agenda grow with a number of important issues and projects. These include the Poudre River planning and redevelopment, the Larimer County Courthouse and parking garage, and a new performing arts hall. In addition, large private investments are being made in the central business district such as Home State Bank, the co -housing project at Lee Martinez Park, the possibility of a new privately owned office building on block 31, the potential annexation of a Wal-mart super center, and a hotel/convention center. The DDA has been contracting on an hourly basis with Chip Steiner to provide executive services for the Authority. Earlier this summer that contract was verbally extended to November. The Board asked the Executive Committee to examine a more permanent solution. The Executive Committee approached Chip with the idea of re-establishing a more formal relationship between himself and the DDA. Following a series of meetings, the Executive Committee is recommending to the full Board that The Steiner Company be contracted with for an annual fee of $85,000 to provide complete management services to the Authority. Since Chip no longer has contractual obligations with Hensel Phelps and therefore no conflict of interest with regard to the Justice Center the Executive Committee is recommending the arrangement become effective immediately. For this fee The Steiner Company makes DDA business its primary responsibility. The company can incur other contractual obligations but Authority business will take priority. The Board will maintain the right to terminate the agreement at will if it believes the services provided are inadequate to the demands. The Executive Committee believes the use of a fee is the most equitable arrangement for the DDA and Chip. It allows Chip to keep his company active and involved in other jobs. For the DDA, a fee arrangement eliminates all the obligations and expenses it would normally incur as an employer. The fee, which is partially based on the salaries paid to senior City of Fort Collins executives, is a gross figure. There are no additional costs. The Steiner Company is responsible for any employee benefits, taxes, insurance, and all routine business overhead (i.e. office rent, equipment, telephone etc.). Members of American Institute of Certified Public Accountants Colorado Society of CPAs Wyoming Society of CPAs The Authority's office rent is to be substantially reduced in the near future because of a proposed relocation where the DDA will pay only for its pro rata share of the space. The Downtown Business Association has agreed to begin paying for the administrative services provided to it by the DDA. These savings coupled to what a full time executive director employed by the DDA would cost are roughly equivalent to the proposed fee to The Steiner Company. Responding to the direction of the Board, the Executive Committee has attached a resolution approving the agreement and authorizing the Chair to enter into the contract. The next agenda item dealing with the budget outlines how the Authority can meet these additional obligations. DOWNTOWN 0 DEVELOPMENT ddoAUTHORITY ONE WEST CONTEMPORARY ART CENTER Telephone (970) 484-2020 201 SOUTH COLLEGE AVENUE, FORT COLLINS, CO 80524 Telefax (970) 484-2069 TO: DDA Board of Directo� FROM: Chip Steiner DATE: September 1, 1997 RE: 1998 Budget items In 1997 the City moved to a two year budgeting cycle and therefore the DDA needs to take action on a number of budget -related issues. The Operating Budget. The Operating budget covers administrative, office and some capital improvement expenses of the Downtown Development Authority. It is funded through a 4.05 ad valorem tax, accumulated reserves, and various grant monies such as Community Development Block Grants and Enterprise Zone donations. Your packet includes two proposed 1998 administrative budgets. The first reflects positive action on the executive committee's recommendation regarding management services. The second leaves this expenditure and therefore the totals blank and will be adjusted if Board action differs from the executive committee recommendation. On the expenditure side please note the following changes: Under Contractual Services, legal services has been increased to $15,000. The DDA's demands on legal counsel increase with its overall workload. Expenditures in 1997 are projected to be 50 percent higher than originally anticipated and 1998 will probably continue that trend; 2. Depending on the outcome of the previous agenda item, contractual labor (under Contractual Services) has been projected both at $85,000 (alt. #1) and left blank in alt #2. Office rent (under Contractual Services) has been reduced to $3,840 in anticipation of the DDA paying only for that space it actually uses (the current arrangement has the DDA paying for 620 square feet although two-thirds of the space is used by the Downtown Business Association; 4. Under Capital Outlay, the DDA anticipates $27,000 in Community Development Block Grant monies (to replace Authority funds used for the co -housing project next to Lee Martinez Park) and, depending on the opinion of legal counsel, either $24,200 (used for budget purposes) or $30,000 in enterprise zone monies to replenish the Authority's 1997 expenditure on Old Town Square plaza improvements. These funds can be used for capital improvements in the central business district. On the revenue side, beginning balance is simply the sum of the cash carried forward from 1996 and all 1997 revenues less projected 1997 expenditures. The beginning balance differs in the two budgets since the outcome of the previous agenda item was not known when this memorandum was written. The other revenue sources include projected enterprise zone donations (from Old Town Square), funds from the Downtown Business Association for administrative services rendered to it by the DDA, Community Development Block Grant monies, and anticipated 1998 tax and interest revenues. The CDBG grant could be considerably bigger than is projected. Other grant monies will be sought over the year as well which could positively effect total available funds for the The payment from the DBA reflects the DDA Board's desire for the two organizations to more equitably participate in shared administrative and operating expenses. Finally, not all the capital improvement projects the DDA has committed to will actually occur. Therefore, some additional funds may become available through 1998 for reprogramming. The Authority should appropriate the monies regardless of their future use. A history of a recent capital improvement commitments is provided below. It is helpful to review the Authority's capital improvement activity for the year. The DDA began 1997 with $228,491 available for project and project related funding. This figure was generated by: Unspent 1996 capital improvement funds $ 9,822 $ 9,822 Committed but unspent 1996 cap imp. Funds: Cozzolas 20,000 ADI 7,000 200 Walnut 25,000 350 Linden 10,000 62,000 62,000 CDBG Grant $ 90,000 90,000 Unspent but budgeted administrative funds $ 7,687 7,687 Excess revenues over 1997 non -capital improvement budget' $ 58,982 $ 58.982 Total $228,491 The DDA projects all categories of its administrative budget except capital improvements based on the prior year's expenditures. This figure is subtracted from anticipated revenues and the resulting balance (if positive) is added to the capital improvement fund. To date, these funds have been spent/committed as follows: Continued 1996 commitments to: ADI $ 7,000(unspent) 200 Walnut 25,000(unspent) 350 Linden I0.000(unsl2ent) $ 42,000 $ 42,000 132-140 North College (under construction) 50,000 Rand -Scott (up to) 32,000 308 S. Howes (project completed) 1,200 Parking Garage Consultant (spent) 10,000 Co -housing project (funds paid to City of Fort Collins) 35,000 Performing arts feasibility study (unspent) 6,500 Up -front EZ funded OTS Plaza improvements 30,000 Old Town Square canopy (unspent) 10.000 Total $ 216,700 The enterprise zone improvements may be reduced to $24,200 depending on the opinion of legal counsel regarding the legitimacy of some of the proposed expenditures. The Board may wish to review these projects as it considers the 1998 budget. Resolution 97-3 approves the operating budget for 1998. Mill Levy. In addition to approving the 1998 operating budget, the Board needs to approve the ad valorem mill levy and recommend the same to City Council. The mill is left unchanged from 1997. Resolution 97-4 addresses the mill levy. Budgeted 1997 Estimated 1997 Projected 1998 PERSONAL SERVICES Salaries 27,247 27,247 27,962 Employees Group Life Ins. 100 100 100 Unemployment Compensation 150 150 150 Employee Group Health Ins. 4,000 4,000 4,000 Social Security (FICA) 500 500 500 ICMA 2,750 2,750 4,200 Dental Insurance 150 150 150 Long -Term Disability 150 150 150 Workers Compensation 125 125 125 Termination Pay 0 0 _ 0 35,172 35,172 37,337 CONTRACTUAL SERVICES Telephone 1,800 1,791 1,800 Postage 200 75 200 Employee Liability Ins. 6,000 7,061 6,000 Mileage 0 0 0 Outside Reproduction 150 450 500 Computer Charges 1,200 0 0 Maintenance Contracts 4,200 4,100 4,100 Legal Services 10,000 14,500 15,000 Janitorial Services 1,200 1,200 1,400 Contractual Labor 26,043 26,043(1) 85,000 Marketing (DBA) 10,650 10,000 10,000 Office Rent 8,700 8,700 3,840 Dues/Subscriptions 700 1,000 700 Other Contractual 500 100 500 Meals 100 350 350 71,443 75,407 129,390 COMMODITIES Office Supplies 150 100 200 Copier Supplies 500 1,000 1,000 Coffee Supplies 200 220 200 Other Commodities 0 _ 0 0 850 1,320 1,400 CAPITAL OUTLAY Enterprise Zone Imps 24,200(2) 59,000 Grant fund Improvements 90,000 27,000 DDA funded Improvements 228,491 96.700 0 228,491 210,900(3) 86,000 OTHER Loan Repayment 31,816 31,816 31,956 Transfer to General Fund 0 0 0 Contingency 4.000 4.000(1) 4.000 35,816 35,816 36,956 TOTALS 371,772 358,615 291,083 Ll Projected 1998 Revenues: Beginning Balance DBA funds CDBG Grant EZ funds Revenues Total Net surplus(shortfall) $58,807 (1) Estimated 1997 expenditures on this 55,821(4) 8,000 27,000 83,200 175,869 $ 349,890 budget presume Board approval of the previous agenda item regarding The Steiner Company consulting services. Cost of those services for the last quarter of 1997 is $21,250. Through September, the DDA will have spent $10,783 of the $26,043 budgeted for contractual services in 1997. The balance, $15,260, the DDA contingency of $4,000, plus unanticipated revenue of $1,035 the DDA from copier charges covers all but $1,000 of this expense. Unexpended monies in capital improvement can make up this difference. (2) The 1997 enterprise zone improvements are budgeted assuming legal counsel finds that the funding of kiosk repairs is not permissible. If the finding is otherwise, the bottom line will not change. The level of improvements will go up to $30,000 (per the Board motion at the August meeting) but the donation (i.e. revenues) will go up by a corresponding amount. (3) Capital expenditures projected for 1997 include the following commitments (date in parentheses indicates year commitment was made): ADI parking lot landscaping, $7,000. (1996) 200 Walnut, ROW improvements, up to $25,000 but current hard commitment is for $15,000. (1996) 350 Linden, ROW improvements, $10,000 (1996) 132-140 North College, facade improvements using CDBG funds, (1996--DDA stipulated project to be done within 12 months). Rand Scott building, facade improvements between $25,000 and $32,000 using CDBG funds. (1997). 308 S. Howes, ROW improvements of $1,200. Paid (1997). Goodale consulting services,$10,000. Paid. (1997). Co -housing, for parkland acquisition, $27,000 in DDA money and $8,000 in CDBG funds. (1997). Performing arts feasibility, $6,500, (1997). EZ upfront monies, either DT canopy, $10,000, (1997). Of this list, the ADI, 350 Linden need to be confirmed or reprogrammed (i.e. free up $17,000) and the level of total expenditure determined on Rand Scott and 200 Walnut (together, if funded at the lower levels, freeing up another $17,000). (4) Beginning balance is determined by subtracting total 1997 expenditures from 1996 balance forward plus 1997 revenues. Total cash and revenues for 1997 is $414,436. In this budget projection, total 1997 expenditures are $358,615 giving a beginning balance of $55,821. Budgeted 1997 Estimated 1997 Projected 199 PERSONAL SERVICES Salaries 27,247 27,247 27,962 Employees Group Life Ins. 100 100 100 Unemployment Compensation 150 150 150 Employee Group Health Ins. 4,000 4,000 4,000 Social Security (FICA) 500 500 500 ICMA 2,750 2,750 4,200 Dental Insurance 150 150 150 Long -Term Disability 150 150 150 Workers Compensation 125 125 125 Termination Pay 0 0 0 35,172 35,172 37,337 CONTRACTUAL SERVICES Telephone 1,800 1,791 1,800 Postage 200 75 200 Employee Liability Ins. 6,000 7,061 6,000 Mileage 0 0 0 Outside Reproduction 150 450 500 Computer Charges 1,200 0 0 Maintenance Contracts 4,200 4,100 5,000 Legal Services 10,000 14,500 15,000 Janitorial Services 1,200 1,200 1,400 Contractual Labor 26,043 14,377(1) Marketing (DBA) 10,650 10,000 10,000 Office Rent 8,700 8,700 3,840 Dues/Subscriptions 700 1,000 700 Other Contractual 500 100 500 Meals 100 350 350 71,443 63,704 COMMODITIES Office Supplies 150 100 200 Copier Supplies 500 1,000 1,000 Coffee Supplies 200 220 200 Other Commodities 0 0 0 850 1,320 1,400 CAPITAL OUTLAY Enterprise Zone Imps 24,200(2) 59,000 Grant fund Improvements 90,000 27,000 DDA funded Improvements 228,491 96.700 0 228,491 210,900(3) 86,000 OTHER Loan Repayment 31,816 31,816 31,916 Transfer to General Fund 0 0 0 Contingency 4,000 4.000 4.000 35,816 35,816 35,916 TOTALS 371,772 346,912 0 Projected 1998 Revenues: Beginning Balance DBA Funds CDBG Grant EZ funds Revenues Total Net surplus(shortfall) $ 67,524(4) 8,000 27,000 83,200 175,869 $ 361,593 (1) Estimated 1997 expenditures on this budget presume an outcome regarding The Steiner Company consulting services other than the Executive Committee recommendation. The "contractual services" line item reflects a 12 month projection based on average monthly expenditure for the first eight months of the year. (2) The 1997 enterprise zone improvements are budgeted assuming leghal counsel finds that the funding of kiosk repairs is not permissible. If the finding is otherwise, the bottom line will not change. The level of improvements will go up to $30,000 (per the Board motion at the August meeting) but the donation (i.e. revenues) will go up by a corresponding amount. (3) Capital expenditures projected for 1997 include the following commitments (date in parentheses indicates year commitment was made) : ADI parking lot landscaping, $7,000. (1996) 200 Walnut, ROW improvements, up to $25,000 but current hard commitment is for $15,000. (1996) 350 Linden, ROW improvements, $10,000 (1996) 132-140 North College, facade improvements using CDBG funds, (1996--DDA stipulated project to be done within 12 months). Rand Scott building, facade improvements between $25,000 and $32,000 using CDBG funds. (1997). 308 S. Howes, ROW improvements of $1,200. Paid (1997). Goodale consulting services,$10,000. Paid. (1997). Co -housing, for parkland acquisition, $27,000 in DDA money and $8,000 in CDBG funds. (1997). Performing arts feasibility, $6,500, (1997). EZ upfront monies, either DT canopy, $10,000, (1997). Of this list, the ADI, 350 Linden need to be confirmed or reprogrammed (i.e. free up $17,000) and the level of total expenditure determined on Rand Scott and 200 Walnut (together freeing up another $17,000). E (4) Beginning balance is determined by subtracting total 1997 expenditures from 1996 balance forward plus 1997 revenues. Total cash and revenues for 1997 is $414,436. In this budget projection, total 1997 expenditures are $346,912 giving a beginning balance of $67,524.