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HomeMy WebLinkAboutDowntown Development Authority - Minutes - 10/03/1996DOWNTOWN � ddo DEVELOPMENT AUTHORITY ONE WEST CONTEMPORARY ART CENTER 201 SOUTH COLLEGE AVENUE, FORT COLLINS, CO 80524 DOWNTOWN DEVELOPMENT AUTHORITY Regular Directors' Meeting MINUTES OF OCTOBER 3, 1996 Telephone (970) 484-2020 Telefax (970) 484-2069 The Board of Directors of the Downtown Development Authority met in regular session at 7:30 a.m., October 3, 1996 in the conference room at 201 South College Avenue, One West Contemporary Art Center. PRESENT There were present: Stephen Slezak, Chair presiding Bonnie Bixler Szidon, Vice Chair Mary Brayton, Secretary Kermit Allard Chuck Wanner Greg Belcher Jason Meadors Absent: Carey Hewitt, Treasurer Bill Attwooll Staff: Chip Steiner, Consultant Anne Garrison Lucia Liley, Counsel Bud Frick, LPC Liaison Guests: Brad Page, Scott Smith, Peter Wray, Ted Shepard Jay Hardy CALL TO ORDER Mr. Slezak called the meeting to order, and entertained a motion to approve the minutes of September 5, 1996. Ms. Brayton moved to approve the minutes as written, this was seconded by Ms. Szidon and the motion carried unanimously. DDA MINUTES PAGE 2 COOPERSMITH'S SILO Mr. Steiner's recap of the last meeting restated the Board's decision to place the silo next to Coopersmith's. The task before the Board today is to review and approve the licensing agreement. Mr. Steiner felt it might be prudent to turn the final design decision over to LPC to preclude this project being delayed between the two groups. Ms. Liley disclosed that Coopersmith's is a client of her company. In discussion with Mr. Steiner and Coopersmith's prior to this meeting, both requested Me. Liley draw up the agreement. This, however, is a matter for Board approval. Provisions for this agreement were taken from Old Town Ale House, as well as the facade agreement. The question posed was whether or not the Board was comfortable with this arrangement. Ms. Liley suggested the option of deferring finalization of the agreement. The Board could vote on it today, then have it reviewed by independent counsel. "What we have asked Ms. Liley to do, and she has complied is to draft an agreement," noted Mr. Meadors, who then moved that DDA contract with Counsel for the limited purpose of the drafting of this license agreement, this was seconded by Mr. Allard and the motion carried unanimously. Ms. Liley briefed the Board on the terms of the agreement stating that this is a license agreement as opposed to a lease, which means it has a shorter term with termination rights. • Initial term of license is for five years • License can be continued for additional terms • Agreement is made with both the owners of the property, then with Coopersmith's as tenants. • Agreement can be terminated with twelve months written notice. • Failure to cure a violation within ten days after written notice of default is given, may result in termination. • Termination is automatic if Coopersmith's ceases to do business. Other points covered in the agreement state that it may be used only as a silo, government regulations must be adhered to and insurance requirements met, maintenance obligations including vandalism are included, and the suggestion was made to escrow funds for the removal of the silo. Mr. Slezak asked if the legal description was being prepared. He also suggested that a construction easement be incorporated into the agreement. In addition, it is requested that Coopersmith's provide a certificate of insurance to the DDA annually. An attempt to establish a reasonable license fee generated the following comments: $120 a year for this viable tenant to downtown and the DDA The silo represents a substantial Coopersmith's will derive a profit month is suggested. DDA is a resource pool of capital monies will be used to help other who is also a benefit intrusion, and from it, so $300 a for other projects, so properties. DDA MINUTES PAGE 3 • The silo is very visible, public response may not be positive, therefore DDA needs to show a reasonable return for it. • Brad Page suggested there may be a misconception regarding profit to be derived, and spoke of labor and raw goods and the need to stay competitive. He suggested a figure between the two amounts already being considered. • Scott Smith asked if $18 a square foot or $1,800 annually would be acceptable. Mr. Meadors moved to adopt the license agreement at $1,800 annually, with the amendments heretofore stated. This was seconded by Mr. Allard, and the Board voted 4-3 in favor of the motion with Ms. Brayton, Me. Szidon and Mr. Slezak opposed. Mr. Frick, Landmark Preservation Commission's liaison to the DDA Board stated that LPC had been looking into a corrugated silo similar to one already in place in San Francisco. It was decided that DDA does not need to review the matter again, but would appreciate a closing report from LPC. it also requests that LPC act expediently in this matter. Ms. Brayton called for a friendly amendment to this effect, which was seconded by Mr. Belcher and carried unanimously. Mr. Smith expressed his concern regarding DDA being able, arbitrarily, to give Cooperamith's notice. Ms. Liley responded that while DDA would not do that, they could terminate with twelve months notice, or as a result of a violation. She added, it was for this reason that Mr. Steiner has suggested they increase the amount of their annual fee to $3,600 and allow the Board to extend the period of licensing from five to ten years. Cooperamith representatives indicated a renewed interest in this option, but the Board having cast its vote and the matter now being closed, declined to revisit the issue. LINDEN STREET Mr. Allard excused himself from this discussion because of a SIGNAGE potential conflict of interest. A group of merchants have organized themselves with the desire of promoting businesses in the 200 block of Linden Street, using appropriate signage. The group seeks DDA's endorsement. Mr. Steiner explained the area is a public right of way and not under DDA's jurisdiction, but that it is an item for legitimate funding. Presenting both sides of the issue, Mr. Steiner addressed concern about fragmenting the downtown into mini retail centers, or in this case, does it unify these stores with others in the area. Diversity allows for a more attractive shopping environment, and recent improvements to Linden Street have encouraged these merchants to strive for greater visibility. Ms. Brayton shared that representatives from Linden Street had appeared before the DBA Board requesting they be included in events which take place downtown, rather than being regarded as a separate entity. Ms. Szidon moved to designate $5,000 toward the purchase of signs as per the renderings, and subsequently $4,000. There was no second to either of these motions. DDA MINUTES PAGE 4 Mr. Wanner feels these designs are not similar to anything else downtown, and we need unity. Mr. Steiner added that it does begin to establish a pattern which takes us down to the river. Ms. Brayton moved to support the Linden Street merchants but at their own expense. There was no second to this motion. Mr. Belcher moved to give $2,000, this was seconded by Mr. Wanner and the Board voted 4-1 with Ms. Brayton opposed. PRINCIPLES & In his overview, Mr. Steiner saw no problem with the POLICIES document, but cited three areas of concern: • Too much conformity stifles creativity and diversity • Creating mini -downtowns could be risky - dilutes social/ cultural identity, undermines investments, jeopardizes economy. • Emphasis on natural area preservation does not acknowledge the interplay between urban Fort Collins and the natural areas which pass through. Mr. Wray advised the Board that the latest draft of Principles and Policies would be available on Friday October 4, 1996. This document reflects the goals of the Downtown Plan and Civic Center Plan, using the format of redlining and strike out to show changes from the last document. A Citizens Advisory meeting will take place on October 9, and following this the document will go to the Planning & Zoning Board on October 29, 1996. City Council will review it on November 5, and the final draft will be ready a week later. Mr. Wray thanked the Board for its letter of support, and Mr. Steiner added that it was important for the Board to make a written recommendation immediately, so it can be available to Planning & Zoning and City Council. It was decided to make it an agenda item at the retreat on October 10, 1996. It was repeatedly requested that Board members fax their comments to Mr. Steiner. Me. Szidon expressed appreciation for Mr. Steiner's research and his guidance on this important issue. BUDGET Mr. Steiner referred the Board to a budget recap and other relevant materials in the packet as he reviewed this item. It was suggested that the funds which have been held over for Cozzola's Pizza be returned to Capital Improvements. Mr. Allard had several line items for which a more in depth explanation was needed. They were as follows: Social Security, Employee Liability, Maintenance Contracts, Dues and Subscriptions and other Contractual. In addition, Mr. Allard inquired about the possibility of early payment of Debt Service. Responses will be provided at the retreat. DDA MINUTES PAGE 5 Resolution 96-7 - Recommending the approval of the 1997 DDA Budget. Resolution 96-8 - Recommending the approval of the 1997 Mill Levy to be Bet at 4.05 mills. Resolution 96-9 - Appropriation of $1,437,860 for Debt Service payment for fiscal year 1997. Mr. Allard moved to adopt Resolutions 96-7, 96-8 and 96-9, this was seconded by Mr. Wanner and carried unanimously. Resolution 96-10 - Authorizing DDA to enter into a Licensing Agreement with Progressive Old Town Square to place a silo on DDA owned property. Mr. Allard moved for adoption of this resolution which was seconded by Mr. Belcher and carried unanimously. Resolution 96-11 - directing legal counsel to prepare an intergovernmental agreement with city for purpose of supporting art in central business district and authorizing the chairman to enter into said agreement. Ms. Brayton moved to adopt this resolution which was seconded by Mr. Wanner and the Board voted its approval with Mr. Allard opposed. ADJOURN There being no further business, the meeting adjourned at 9:35 a.m. Mary Brayton, Secretary