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HomeMy WebLinkAboutDowntown Development Authority - Minutes - 12/07/1995ddDOWNTOWN 0 DEVELOPMENT AUTHORITY ONE WEST CONTEMPORARY ART CENTER Telephone (303) 484-2020 201 SOUTH COLLEGE AVENUE, FORT COLLINS, CO 80524 Telefax (303) 484-2069 DOWNTOWN DEVELOPMENT AUTHORITY Regular Directors' Meeting MINUTES OF DECEMBER 7, 1995 REGULAR MEETING The Board of Directors of the Downtown Development Authority met in regular session at 7:30 a.m., December 7, 1995 in the conference room at 201 South College Avenue, One West Contemporary Art Center. PRESENT There were present: Stephen Slezak, Chair presiding Mary Brayton, Secretary Carey Hewitt, Treasurer Greg Belcher Jason Meadors Kermit Allard Staff: Chip Steiner, Consultant Absent: Bonnie Bixler-Szidon Chuck Wanner CALL TO ORDER Mr. Slezak called the meeting to order. A motion was made by Mr. Allard to approve the minutes of November 2, 1995 with a correction. This was seconded by Mr. Meadors and the motion carried unanimously. DDA/LPC Mr. Steiner referred Directors to Resolution 95-8 contained RELATIONSHIP in their packets, together with a letter to LPC reaffirming the Board's desire to institutionalize the longstanding relationship between the two entities. Following some discussion, a motion was made by Mr. Hewitt to adopt Resolution 95-8, this was seconded by Mr. Goodale and the motion carried unanimously. CONSULTING Mr. Steiner's Professional Services Contract expires in SERVICES December 1995. If the Board so desires it can either renew it, or select from a variety of options offered by Mr. Steiner in lieu of these services. A motion was made by Mr. Allard to extend the Professional Services Agreement with Mr. Steiner for one year, with an addendum stating that the maximum hours now in effect could be increased, with the approval of the President, acting on behalf of the Board. This was seconded by Mr. Hewitt and the motion carried unanimously. Mr. Meadors queried whether an escalation of hours might 0 DDA MINUTES PAGE 2 adversely impact the budget. This led to a question by Mr. Goodale concerning the lack of increase in the tax increment. Mr. Steiner will investigate this matter and meet with Mr. Allard and Me. Liley. COZZOLA'S PIZZA In a letter to Mr. Cozzola last fall, the Board requested he return to us in December, if he was unable to obtain financing. It was learned that Mr. Cozzola was in Denver that morning pursuing various financial options. The following concerns were raised: • The validity of the project • Is Mr. Cozzola over extended? • How much of the work is being done by the owner? • Design is acceptable, but not historically correct. • Should funding be withdrawn since the deadline has past? Mr. Steiner called for a broader view of the project. It is a significant undertaking for the area, and while we should not jeopardize other projects, we can certainly support this one until funds are depleted. At which point, if another project is ready to go, support can be withdrawn or reviewed if plans are scaled down. Me. Brayton made a motion to continue support of this - project. She suggested a letter be sent to Mr. Cozzola stating final approval by DDA is necessary, and that other projects needing funding may take precedence. Final approval and clarification of the financial commitment to be made in 1996. Mr. Hewitt seconded and the motion carried unanimously. GOVERNANCE OF Discussions centered around a letter from the City's legal DDA MEETINGS counsel, concerning the rules governing DDA meetings. The issues involved open meetings and potential conflicts of interest, and also whether State or local laws take precedence. Ms. Liley sought to clarify the issues by stating that DDA is a separate entity, therefore, not part of the City. She feels City Council must define whether DDA should be under the City Code. Conflict of interest seems to be a primary concern. A City conflict may be any interest related to money. Personal interest might be a business or personal association. Should DDA fall within City Code, it must do a full disclosure to the City. DDA is in compliance in that all meetings are open, with at least 24 hours notice filed with City Clerk, and minutes are always taken. However, there are differences, and the City needs to understand them. In summary, Ms. Liley recommends that the City be advised that the DDA adheres to most of the provisions regarding open meetings and conflicts of interest, but because of specific state statutes governing dda's, certain differences exist to allow them to operate effectively. These differences will be outlined in letter form to the City Attorney. Mr. Allard made a motion to adopt Ms. Liley's recommendation Ms. Brayton seconded the motion which was carried unanimously. DDA MINUTES PAGE 3 BUSINESS As a result of several meetings of the special committee, IMPROVEMENT Counsel has been directed to examine the possibility of DISTRICT establishing a Business Improvement District (BID), and to determine whether or not the consolidation of such entities as DDA and GID under one umbrella might be feasible. OTHER BUSINESS It was agreed to adhere to the meeting date of January 4, 1996 as previously set. CIVIC CENTER Concern was expressed that DDA be fully represented in any decisions made with regard to the Civic Center. It is the Board's wish Mr. Steiner represent them on both the Advisory Board and the Task Force, so that DDA might have a guiding hand in the development of the Civic Center from the outset. Mr. Steiner agreed so to do. DDA OPEN HOUSE Directors are invited to attend the DDA open house on December 14, 1995 to be held at the Edwards House. Please RSVP when you have opportunity. BUSINESS AFTER Merchants in Opera Galleria are seeking ways to -- — -- HOURS increase awareness of their businesses, and Ms. -Brayton suggested holding a Business After Hours at their location. ADJOURN There being no further business the meeting was adjourned. Mary Brayton, Secretary ddDOWNTOWN 0 DEVELOPMENT AUTHORITY ONE WEST CONTEMPORARY ART CENTER Telephone (303) 484-2020 201 SOUTH COLLEGE AVENUE, FORT COLLINS, CO 80524 Telefox (303) 484-2069 TO: DDA Board of Dir ors FROM: Chip Steiner DATE: 1/2/96 RE: 200 Walnut Street Facade Request Two months ago the Board of Directors discussed participation in the renovation of the two-story property located at the corner of Walnut and Pine Street. The project is being submitted to the Board with additional details regarding the renovation. The attached letter from Tom Livingston explains that the renovation is intended to be historically accurate and all historic preservation designations will be sought in order to qualify for the corresponding tax credits. Because of this, closing on the property will not occur until this summer. The DDA is being asked to purchase the facades on both Walnut and Pine Streets for roughly $64,000. Total project cost excluding purchase price is estimated at $225,000 - $250,000. The 1996 DDA administrative budget includes $90,996 for capital projects (the line item actually includes an additional $20,000 but these funds have been earmarked for the Paramount Building). Because of this building's location at the entrance to the historic old town area and because a historic renovation will be a significant design improvement to the physical appearance of the central business district, acquisition of the facade(s) by the DDA should receive serious consideration. However, the Board is urged to consider participation in this project in perspective with other facade acquisition projects and with regard to the overall impact on the 1996 capital improvement budget. This request represents between 25 and 30 percent of the entire project cost. It is rare for DDA participation to exceed 10 percent. In the Harmony Mill, a project costing over $1 million, DDA participation is scheduled to be less than four percent. DDA participation in the ADI building amounts to three percent of the project cost. Even in the Linden Hotel, arguably the most important downtown historic structure, DDA participation was less than eight percent. The facade acquisition for the Children's Mercantile exceeded 10 percent of the renovation cost but involved completely rebuilding the front of the structure. Not counting the Linden Hotel, the most expensive facade acquisition has been the $60,000 paid for the Stone Lion storefront --a project that, to date, has generated an investment of $750,000 in building improvements excluding the second floor which remains unrenovated. If the DDA acquires the facades at 200 Walnut for the requested $64,000, more than 70 percent of its 1996 capital improvement funds will have been committed before the year is one week old. Some suggestions for the Board to consider: 1. Participate in right-of-way improvements rather than the facade(s). It may be appropriate to approach the City with a concept to extend the Linden Street improvements onto Walnut Street; 2. Simply approve_ a lesser amount of funds for facade acquisition;- 3. Acquire only the Walnut or Pine Street facade; 4. Approve a certain level of funding at this time and consider additional funding should the DDA be successful n:__c._ in receiving a CDBG grant; The Board might also suggest to the developer that any DDA funding be used to leverage a State historic grant as a method of generating enough revenue to make the project financially feasible. DDA assistance in the grant preparation would be provided at the developer's request. (For your comfort, I have committed to memory the submittal deadline for the 1996 CDBG grant application round--THURSDAY, March 28, 12 noon.) l December 29, 1995 VERM CLOMWNIES Mr. Chip Steiner Downtown Development Authority 201 S. College Avenue Fort Collins, CO 80524 Dear Chip: The Everitt Companies appreciate the DDA's ongoing support for the redevelopment of the "CC Forester Block" currently known as 200 Walnut Street in Old Town Fort Collins. Our architects, Vaught Frye, have completed drawings of the south and west elevations of the building for your review and evaluation. Also attached is a schedule of values prepared by our contractor, Dohn Construction, Inc., which identifies $64,146 of costs associated with the storefront reconstruction. We estimate that costs for redevelopment and restoration of the building in accordance with local and national historic guidelines will be between $225,000 and $250,000. This includes structural stabilization, interior restoration, and those improvements necessary to bring the space to leasable standards (excludes purchase price). The building at 200 Walnut has approximately 50 feet of frontage on Walnut Street and 80 feet of frontage on Pine Street. The building in its original configuration had access to both public right-of-ways. In an article written in 1907, the building was referred to as a state of the art commercial facility with the largest plate glass window in the city, thus reinforcing the importance of an accurate and complete restoration of the storefront improvements on both Pine and Walnut. After further evaluation of this project, we have extended our closing date to summer of 1996. It will be necessary for us to receive all appropriate local, state, and federal subsidies applicable to restoration of an historic structure in Old Town prior to proceeding. Without the appropriate support, we will have to pass on this project. In conclusion, the owners of 200 Walnut would be prepared to dedicate the storefront on both Pine and Walnut to the Downtown Development Authority as is customary for reimbursement of storefront reconstruction costs. Due to the historic significance of this structure, its visibility from College Avenue, and its prominent location as an entrance to Old Town, we are requesting that the DDA support this project and fund the entire storefront renovation cost. This total is based on the estimate of construction costs, an allocation of design costs applicable to the storefront, and the appropriate overhead and supervision needed to manage the project. We would appreciate it if you could give us a firm commitment on this project in the near future so that we can determine the feasibility of proceeding to the next step of our evaluation. Again, we appreciate your support of this project to date and hope we can look for your financial support as appropriate. Sincerely, rivingston resident TL/sv Corporate P.O. Box 2125 Fort Collins, Colorado 80522 3000 South College Fort Collins, Colorado 80525 (970) 226-1500 (303)623-6018 Denver Line FAX (970) 223-4156 12/29/1995 14:03 3034JW55 DOFH CONrTRUCTJ 1)1%0 1 001 DOHN CONSTRUCTION. INC. 1701 Se'romonte 00" Fort CCIBnt. Colorado 00524 003) 4904e55 PRELIMINARY SCHEDULE OF VALUES 200 WALNUT STREET - STOREFRONT RENOVATII WALNUT STREET 4 PINE STREET ELEVATIONS December 29, 1995 PAGE 02 Permit & Fees $ 1,769.00 Demolition 4,158.00 Courtyard Fence & Gate 1,140.00 . Concrete Walk 927.00 Masonry Repair 2,280.00 Rough Hardware 114.00 Caulking & Sealants 746.00 Structural Steel 2,850.00 Rough Carpentry 3,275.00 Finish Carpentry 2,425.00 Exterior Doors 1,220.00 Glass & Glazing 13,295.00 New Windows 16,946.00 Painting 3,420.00 TOTAL $54,565.00 Design & Engineering 3,750.00 Supervision Fee - 10% 5,831.00 TOTAL ESTIMATED COST $64,146.00 No Text ddDOWNTOWN 0 DEVELOPMENT AUTHORITY ONE WEST CONTEMPORARY ART CENTER Telephone (303) 484-2020 201 SOUTH COLLEGE AVENUE, FORT COLLINS, CO 80524 Telefmc (303) 484-2069 TO: DDA Board of DirervFs FROM: Chip Steiner DATE: January 2,_1996 / RE: Office Lease The DDA's office lease expires January 31. The lease provides for two one-year renewals at a mutually agreed upon rental rate. The Authority currently pays a gross rent of $12/square foot or $7,440/year. However, the net rate is $5,440 which allows for the amortization of the final $2,000 in tenant finish costs paid by the DDA when it first moved to One West Art Center. One West has tentatively agreed to renew the lease at $12/square foot ($7,440 annually) for the next 12 months. This is reasonable and the Board is encouraged to approve the renewal. Since the 1996 administrative budget appropriated $8,700 for office rent the Authority has the necessary funds available to meet this obligation. In addition to its consideration of rental rates the Board may want to discuss a new clause allowing the Authority to break the lease if acceptable conference room space is not provided by One West. A related issue and one which the Board may want to address at this time is whether the DDA should relocate its offices. It has traditionally done this as a way to provide assistance to buildings/projects in need of tenants and income. If this is deemed an important and immediate objective, the renewal of the lease with One West needs to be revised accordingly. D&NTOWN DEVELOPMENT AUTHORITY ONE WEST CONTEMPORARY ART CENTER Telephone (303) 484-2020 201 SOUTH COLLEGE AVENUE, FORT COLLINS, CO 80524 Telefax (303) 484-2069 TO: DDA Board of Direc s FROM: Chip Steiner DATE: January 2, 1996 RE: DDA/DBA Agreement Attached to this memorandum is an updated agreement with the Downtown Business Association for the provision of marketing and promotional services. Consistent with the approved 1996 operating budget, the cost of services provided to the DDA has been reduced to $5,000 plus secretarial support. The $5,000 reduction in the DDA's annually renewed contractual obligation with the DBA is in its third and final year. According to this schedule, the Authority will not contract with the DBA in 1997 for any marketing, promotional, or other services. This is in accordance with a long-time DDA objective to dissolve the financial partnership between the two organizations. This objective bears revisiting. without question, the Downtown Business Association received the greater benefit when this partnership was first established. However, the DBA has taken full and very responsible advantage of the partnership. Through the tremendous efforts of its professional staff, the DBA has been built into a highly effective and respected organization. It markets and promotes downtown Fort Collins, and consequently the whole community, as well as, and usually better, than any other local organization. Drawing between 150,000 and 200,000 people into the central business district with just two events pays enormous dividends to the DDA, to downtown businesses, and to the tag coffers of the city. The DBA deserves much of the credit for keeping the central business district's generation of total taxable sales at 16 percent of the community -wide whole through the past decade. This, as the DDA is well aware, occurs even as tens and hundreds of thousands of square feet are added to the commercial inventory at the south end of the City. This kind of performance bears directly on the success of downtown businesses. It also bears directly on the DDA's ability to pursue those improvements that enhance the physical appearance and attractiveness of downtown. Of course, the reverse is true as well, and it is this that suggests the partnership is worth main- taining. The work of the DDA and the DBA are mutually beneficial. Page 2. DDA/DBA January 2, 1996 The DDA's financial participation with the DBA no longer represents a significant portion of the organization's overall budget and has not for the past six years. Nevertheless, it has been a stable and consistent resource permitting the organization to more heavily focus on programming to benefit downtown and to worry much less about paying for administrative expenses. This ability to focus on what is important .for downtown is what the DDA,_ the private sector, and the whole community benefit from most. The DBA has proven it can operate outside the partnership with the DDA. The question is, does downtown, does the community, does the Authority, benefit from dissolving the relationship? AGREEMENT THIS AGREEMENT is entered into this day of January, 1996, by and between the Fort Collins Downtown Development Authority (DDA) and the Downtown Business Association (DBA) upon those terms and conditions set forth below. WHEREAS, DDA has been authorized by its Board of Directors to enter into an agreement for the performance of marketing and promotional services within the Downtown Development Authority District; and, WHEREAS, the DBA is capable of providing promotional and marketing services within the Downtown Development Authority; and, WHEREAS, the promotional and marketing services to be provided hereunder will be in furtherance of the purposes of the DDA as set forth in CRS 31-25-801 et seq. NOW, THEREFORE, it is agreed by and between the parties hereto: 1. DDA shall hire and retain DBA and does hereby hire and retain DBA to perform, on behalf of the DDA, marketing and promotional activities within the downtown development district which activities shall be subject to review by the DDA Board of Directors. A schedule of all activities to be performed under the terms of this Agreement shall be provided to DDA by the DBA. 2. In consideration of the services to be provided by DBA, DDA shall pay DBA a total of $5,000.00 in four quarterly payments of $1,250.00. The DDA shall further provide DBA with secretarial services to the extent such services do not affect the normal operations of the DDA. 3. Prior to the release of funds to the DBA from the DDA in calendar year 1996, DBA shall provide DDA with a report of activities planned for 1996, and annual budget. By: By: Tanya Spasev, Executive Director Steve Slezak, Chair Downtown Business Association Downtown Development Authority Date: Date: D:\A9fmt.dbe