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HomeMy WebLinkAboutDowntown Development Authority - Minutes - 10/20/1999DOWNTOWN � dda DEVELOPMENT AUTHORITY 19 OLD TOWN SQUARE, SUITE 230 FORT COLLINS, CO 80524 Mary Brayton, Chair 484-1401 (W) Chuck Wanner, Council Liaison 484-0810 (H) Anne Garrison, Staff Liaison 484-2020 (W) DOWNTOWN DEVELOPMENT AUTHORITY Special Meeting of Board of Directors MINUTES OF OCTOBER 20, 1999 Telephone (970) 484-2020 Telefax (970) 484-2069 SPECIAL MEETING The Board of Directors of the Downtown Development Authority met in special session at 7:30 a.m. on October 20, 1999 in the conference Room at Home State Bank, 303 East Mountain Avenue. PRESENT There were present: Mary Brayton, Chair Larry Stroud, Vice Chair Jason Meodors, Secty/Treasurer Carey Hewitt Steve Slezak John Pitner Margaret Brown ABSENT Greg Belcher Chuck Wanner STAFF Jay Hardy, Executive Director Anne Garrison Lucia Uley, Counsel GUESTS John Fischbach, Angela Milewski CALL TO ORDER Ms. Brayton called the meeting to order at 7:35 a.m. and roll call was taken. APPROVAL OF Mr. Slezak asked Ms. Garrison whether he had indeed seconded a MINUTES motion to support DDA's participation in a joint marketing campaign to promote the new parking garage, in the amount of $5,000. A motion he later opposed. It was agreed that the tape would be reviewed, and with that understanding, Mr. Slezak moved that the minutes be approved, this was seconded by Mr. Pitner and carried unanimously. The tape revealed that both Messrs. Slezak and Belcher simultaneously seconded the motion. DDA MINUTES PAGE The discussion which followed Mr. Slezak's motion took a slightly different direction, which he then felt unable to support. Therefore, for the record, Mr. Belcher's motion is the accepted 'second' in Mr. Slezak's stead. NORTHERN HOTEL Mr. Hardy summarized for the Board its agreement to participate in the Resolution 99-7 funding of the Northern Hotel in the amount of $331,000, and later, at its October 7, 1999 meeting to furnish these funds prior to the acquisition of the property on October 22, 1999. DDA has now been advised by the State Historical Society, which is providing just over one half million dollars in the form of a grant to this project, that it is requiring an easement on the facade be held by an entity whose sole mission is historic preservation. At this time, the Foundation of the State Historical Society, or the local Landmark Preservation Commission are the suggested designees. Resolution 99-7 speaks to the fact that these monies are in the form of a grant to the City of Fort Collins, specific to the acquisition and renovation of the facade of the Northern Hotel. Mr. Meadors moved to approve Resolution 99-7, and this was seconded by Mr. Pitner. Angela Milewski, representing the Landmark Preservation Commission, (LPC) noted that Historical Fund grant monies, like DDA's are geared toward the exterior of a building. The interior, in particular the lobby, has many historical features which do not come under the purvue of any historical entity. This does not have to do with the motion, but it is a concern which has been discussed many times by the LPC. Ms. Milewski appealed to the City to take an active part in preserving some of these features. It is understood that the City is taking a 20 year license on the lobby area and in consideration of their financial participation, are able to describe a certain kind of lobby improvement, and require that it be kept open as a public area. Ms. Liley explained that even though DDA funds had been given to the City, specific restrictions had been placed on the grant, that these funds be used for facade renovation. In the legal documents, it will also be requested that the monies go into a reserve account, so that once the construction financing is in, the $331,000 in DDA funds will go into a facade account, and thus be used in keeping with the mission of the Authority. Several Board members had questions concerning the ownership and acquisition of this building, the risks involved and its timeframe. Mr. Hardy explained that the building must first be acquired by November 1, 1999 and this is an area in which DDA is assisting, in order for the tax credits to be issued. Once they are issued, the investors come on line. They cannot put their money down until the tax credits are issued, and these cannot be issued until the building is acquired. Karen Girard has indicated Letters of Intent from the investors and others are being held by the California attorneys. To secure the project further, is the fact that Alliance has been required to state a gross maximum cost, which is secured by insurance bonds in the event something unexpected would drive the cost higher than projected. Mr. Meadors expressed concern that the facade was being purchased by the DDA and administered by another entity, and the resolution does not reflect this fact. Normally DDA had something more tangible in hand at the conclusion of a project. DDA MINUTES PAGE Ms. Liley explained that what is being done here today with Resolution 99-7 is merely to approve the grant to the City of Fort Collins, we are not acquiring an easement, nor is the City. We are authorized under our statutes to give this grant to the City for the purposes of working on a facade and acquiring the Northern Hotel. Legally, it is important to ensure that the easement happens, because the DDA wants the protection of an easement. Thus, to make sure nothing prevents the easement from going to the Historical Society Foundation, DDA has done a regular facade easement which will be signed and put in escrow. If anything should occur with regard to the State deal, DDA will have a signed easement in favor of the City (not the DDA) which will then come into play. The resolution does not reflect this information because it is crafted solely for the purposes of making the grant, but in addition, DDA is attempting to ensure that those things which are important to it, do indeed take place. The Board entered into a general discussion in which the following issues were considered: ■ The project is not without risk, however every attempt has been made to minimize that risk ■ Attorneys from California and the City of Fort Collins have been involved in the legalities. DDA was brought in only a few days ago when the question of tax increment surfaced, hence the paucity of details ■ Because of the many entities involved, information has been fragmented and less than usual for a project of this consequence, because staff was not privy to the data earlier than this week Counsel then clarified for the Board that even though DDA money will be used for the initial acquisition, it must be emphasized that before construction begins, DDA's $331,000 will be replenished and placed in a segregated account, and this is part of the legal documentation. Thus these funds can only be used for the facade renovation, which means that in the event that other funding runs low, DDA funds can only be used for the facade portion of the project. Following this discussion, the motion to approve Resolution 99-7 which had been proposed and seconded earlier, was carried unanimously. RESOLUTION 99-6 This resolution was adopted at the October 7, 1999 regular Board meeting with the request for a change of language in the paragraph which speaks to DDA's facade and sidewalk program. Essentially, the language has been expanded to state that DDA may undertake any projects which fall within its authorized guidelines as shown under CRS 31-25-801 et sec; No further action is required on the part of the Board. RESOLUTION 99-8 This resolution pertains to the annual budget, presented to the Board at the September meeting with no changes being made. It is part of a two year budget approved by City Council a year ago. Both revenue and expenses are shown, and it is noteworthy that for the first time in DDA's history, revenues did not match up with expenses, because revenues were higher. Ad Valorem taxes show a $35,000 increase from a year ago, Auto Specific Ownership Tax is about $6,000 more, so there is quite a bit of additional revenue. DDA MINUTES PAGE Mr. Slezak moved to adopt Resolution 99-8, this was seconded by Mr. Pitner and carried unanimously. OTHER BUSINESS ■ Mr. Hardy commented that all items in the project financial package brought before City Council for second reading last Tuesday evening passed. This represents a saving for DDA of over $100,000 in interest and issuance costs over the next six years. Mr. Hardy called for special thanks to Mr. Fischbach and Alan Krchmarik for their assistance in putting the package together, and seeing it through Council channels. ■ Menu choices from the Edwards House were distributed, in order that a decision on luncheon choices could be made for the DDA Retreat and November Board meeting scheduled for November 4, 1999 ADJOURN There being no further discussion, the meeting adjourned at 8.05 a.m. Jason Meadors, Secretary DOWNTOWN � DEVELOPMENT AUTHORITY 19 OLD TOWN SQUARE, SUITE 230 Telephone (970) 484-2020 FORT COLLINS, CO 80524 Telefox (970) 484-2069 To: DDA Board2f Directors From: Jay Hard Date: November 799 RE: Four Corners Project (Laporte/Mason) At the October meeting of the Board of Directors, there was discussion regarding an approximate shortfall of $140,000 relating to the Four Corners projects. These projects are the Mason St. parking ramp, Justice Center, City Building, and the Transportation hub on the northeast comer of Mason and Laporte. I have met with Ron Phillips and Gary Diede from the City to discuss the proposal included in your packet. This proposal formally requests funding of $140,000 to assist with these projects. This proposal also outlines many different elements, which make up the shortfall. The majority of the assistance being requested relates to the "streetscape" elements of these projects. In reviewing this request, please consider the following issues: 1. This project will not generate any revenue with which to `repay' the debt; 2. Selected elements are not `bricks and mortar' (Le. Inspection fees, contingency fiord, construction management, etc.) However, these are expenses to the individual projects; 3. The City has made the commitment to fiord the Remington St. garage improvements; 4. Without funding, portions of these projects will be delayed or eliminated. If the Board chooses to participate, funding for the project would need to be on an extended payment basis. Currently the tax increment reserve fiord comprises approximately $40,000. At the end of FY 2000, the estimated total will be over $200,000. Additionally, I have requested the City provide cost estimates to repair/replace the sidewalk/curb on the north side of the 200 block of Walnut St. The completion of the recent renovations has concluded all projects being renovated on that side of the street. The Board may wish to consider this project as a part of this financing. DtWNTOWN � DEVELOPMENT ddoAUTHORITY 19 OLD TOWN SQUARE, SUITE 230 Telephone (970) 484-2020 FORT COLLINS, CO 80524 Telefax (970) 484-2069 To: DDA Board of Directors From: Jay Hardy Date: November 4, 1999 RE: Old Town Square Patio License Agreements In December 1997, the DDA Board of Directors voted to implement a $3/sf charge to all patio users in Old Town Square. These agreements are scheduled to activate on January 1, 2000. However, the property owner and tenants have notified the DDA that they wish the Board to revisit the amount to be charged. In general, the property owner and tenants are not against the philosophy of being assessed something for this space, however, they are opposed to the suggested fee. In visiting this issue it is important to note the City of Fort Collins is scheduled to implement a similar policy, charging between $1-3/sf for all other patios in the downtown area. This agreement would be for three years with inflationary consideration each year. Although the DDA can carry a different policy and pricing structure, many have raised concern about `equal treatment' amongst downtown tenants. The DDA has a very important commitment to the taxpayers and the implementation of these agreements is good policy. However, consistency in this issue is monumental to all involved, and the Board is asked to consider this factor in its decision making process. For your review, I have prepared the financial affect for each tenant, comparing the $3/sf with $1/sf. Tenant Square footage Annual Cost ($3 a CooperSmith's 860 $2,580.00 San Felipe's 443 $1,329.00 Suite 152 360 $1,080.00 Lucky Joe's 92.5 $277.50 $443.00 $360.00 $92.50 IWNTOWN • dda DEVELOPMENT AUTHORITY 19 OLD TOWN SQUARE, SUITE 230 FORT COLLINS, CO 80524 To: DDA Board of Directors From: Jay Hardy Date: November 4, 1999 RE: Employment Contracts Telephone (970) 484-2020 Telefox (970) 484-2069 Under the terms of the staff contracts, it states that DDA shall advise its employees of its desire to continue/discontinue employment 60 days prior to the termination of the agreement, on December 31, 1999. As a result, a Letter of Intent signed by Mary Brayton has been directed to the City, in order to comply with this requirement. The bylaws instruct the Executive Director to perform the evaluation of staff; and the Board conducts a similar process for the Director. Anne and I have met, and I will discuss this evaluation at the meeting, to whatever extent the Board desires. DOWNTOWN 41 DEVELOPMENT AUTHORITY 19 OLD TOWN SQUARE, SUITE 230 FORT COLLINS, CO 80524 To: DDA Board o Directors From: Jay Hard Date: November 4 99 RE: Contemporary Art Center Liaison Telephone (970) 484-2020 Telefax (970) 484-2069 The DDA has had a representative on the Contemporary Art Center Board for the past few years. Steve Slezak has served in this capacity. As the DDA term for Steve will be over this next summer, the Board is being asked to consider a replacement for this position. D�WNTOWN � dda DEVELOPMENT AUTHORITY 19 OLD TOWN SQUARE, SUITE 230 Telephone (970) 484-2020 FORT COLLINS, CO 80524 Telefox (970) 484-2069 To: DDA Board of Directors From: Jay Hard<� Date: November 4, L999 RE: Parking Garage Marketing Plan Update Attached is the preliminary marketing plan for the new parking garage on Mason St. The DBA is currently finalizing these promotional efforts. Additionally, the Ribbon Cutting Ceremony for the garage will be November 22°d at 9:00 a.m. The Grand Opening Party will be the Friday after Thanksgiving (November 26`h) from 1-4 p.m. All Board members are invited to both events, and will be receiving an invitation via mail. Civic Center Parking Structure Marketing Campaign Print Advertising -Style Magazine Winter Issue $700 -Coloradoan two 20inch flights $2000 -Northern Colorado Business Report $700 -Loveland Reporter Herald (undecided) Radio Advertising -Brill Communication $1200 -Clear Channel $1100 Television Advertising -AT&T Cable $1900 -US Cable (Intermountain CableComm is sending rates) Grand Opening Party November 26th 1:00 - 4:00 p.m. (working with project coordinator and city on costs) Other -Advertising $400 -Entertainment $500 -Webs site downtownforteollins.com $250 (setup and graphics cost only) -Ad designs and layout $500 -Downtown CCPS Informational Flyers $250 -TV production $500 Downtown Business Association Holidays and Event Marketing (w/ CCPS tags) -Print $3000* -Radio $1500* -TV $4000* *These amounts include negotiated matching advertising Downtown Business Association • 19 Old Town Square, Suite 230 • Fort Collins, CO 80524 Tel: 970-484-6500 • Fax: 970-484-2069