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HomeMy WebLinkAboutDowntown Development Authority - Minutes - 02/05/1998ddoD NTOWN DEVELOPMENT AUTHORITY 19 OLD TOWN SQUARE, SUITE 230 Telephone (970) 484-2020 FORT COLLINS, CO 80524 Telefax (970) 484-2069 DOWNTOWN DEVELOPMENT AUTHORITY Regular Directors' Meeting MINUTES OF FEBRUARY 5. 1998 REGULAR MEETING The Board of Directors of the Downtown Development Authority met in regular session at 7:30 a.m., February 5, 1998 in the Meeting Room at Home State Bank - 303 E. Mountain Avenue. PRESENT There were present: Mary Brayton, Vice Chair Jason Meadows, Secretary Greg Belcher, Treasurer Margaret Brown Steve Slezak Chuck Wanner Larry Stroud John Pitner Absents Kermit Allard, Chair MINUTES Staff: Chip Steiner, Consultant Anne Garrison Lucia Liley, Legal Counsel Guests: John Daggett - Transportation, Jay Hardy, Bud Frick Mo. Brayton called the meeting to order and roll call was taken. A motion was made by Mr. Slezak to approve the minutes of January 8, 1998 which was seconded by Mr. Belcher and carried unanimously. DDA MINUTES PAGE 2 JOHN DAGGETT Mr. Daggett, used a schematic to provide the Board with an TRANSPORTATION overview of the Transportation Center. He explained how a citizen of Fort Collins would be able to avail themselves of what he termed "seamless transportation." An example might be biking to the bus stop, mounting the bicycle on the bus rack which proceeds to the Multi -Modal Transportation Center. The bike would then be housed in a storage compartment, and the individual could select perhaps a bus to Winter Park, and in future years, possibly a train to Denver. The purpose of Mr. Daggett's presentation was to obtain the Board's input prior to completion of the preliminary development plan, and in addition, obtain an endorsement of the concept and location of the project. In his overview, he touched on several points of the plan: * An arcade to soften the look of rows of metal buses * A traffic study to determine the impact of bus arrivals and departures with regard to train schedules. * A 'kiss and ride' drop off zone * CSU will be the site of the middle terminus, with Harmony providing the southern hub, and the downtown segment housed on the old freight depot block. The Board spoke of its concern that even with the proposed parking garage, Fort Collins continues to be underparked. Adequate parking is crucial to the life of any downtown, and consideration must also be given to those traveling from the north to the transit center. A suggestion was made to utilize the building pads for additional parking. Other observations referred to on street parking made necessary by the inability of some people to obtain permits for longterm parking. It would be helpful to get a grasp of those numbers. It was also pointed up that mass transit will become more significant in the next few years and we need to learn now to think in a new paradigm. Parking will always be an issue, but things change and we need to be farsighted enough to plan for those changes to the best of our ability. Following the presentation and question and answer period, Mr. Meadors moved to endorse the concept and location of the Multi -Modal Transportation Center, this was seconded by Mr. Belcher and carried unanimously. DDA/DBA The January Board discussion on this subject served only to AGREEMENT complicate the issue. Packets include Resolution 98-2 authorizing the chairman to enter into an agreement with the Downtown Business Association for the provision of reciprocal services. Attached to the Resolution is a letter to Me. Brayton in her capacity as President of the Downtown Business Association, confirming the exchange of services and outlining the obligations thereof. Two additions were suggested as follows: * The services rendered be valued at $10,000 * A seat on the DBA Board of Directors be offered to the DDA Mr. Slezak made a motion to adopt Resolution 98-2 with additions as noted, this was seconded by Mr. Stroud and carried unanimously. DDA MINUTES PAGE 3 PURCHASING Mr. Steiner stated that of recent date City staff had raised PROCEDURES some issues, regarding the Authority's failure to bid out the Right of Way design and construction of Home State Bank, and the Consultant's contract. Mr. Steiner explained that DDA is different from other entities and because of those differences, there is reason why it should not be subject to the City's bidding requirements, as they relate to capital improvements. DDA is, in truth, simply an advocate and not in the regulatory business. It works in a cooperative fashion with the private sector; often in partnership, and its role is to facilitate not hinder the development of these projects. Complications arise when a Right of Way project is on a City owned property, and tax increment money is being used. This is viewed by the City Bond Counsel as City not DDA money. In these instances, one of the Charter issues which cannot be avoided is bonding. Only by changing the Charter could this be circumvented. This is not a viable consideration. Thus when tax increment money is being used for a City improvement (as opposed to a public improvement) then it is a requirement to bond it. We can request an exemption on the bidding process without changing the Charter, when it comes to Administrative and Contractual Services. Ms. Liley offered the following clarification. The Charter provision only applies to public Right of Way work. Goods and services are not affected by the Charter, only by City Ordinance. Ms. Liley said that the question is, as it has been for the past five years: Is the DDA a City department? DDA maintains that despite its tie to the City, it is not, but is instead an entity set up by statute. The situation is generally understood by City Attorney, Steve Roy, as it is by DDA Counsel, both of whom would feel more comfortable if DDA obtained something from City Council which by ordinance agrees that for purposes of 'conflict' and 'bidding' requirements, it is not considered a City Department. Thus the DDA Board would be free to decide, as a policy matter, what should or should not be bid. As a result, the legal discomfort would be removed for the City, when DDA does not utilize its bidding process. Thus the following recommendations were offered: Ask City Council by ordinance to recognize that it is not a City entity for the purposes of bidding. Request an exemption under the Charter so that it can loosen up competitive requirements for public Right of Way work. Mr. Belcher made a motion to adopt the purchasing policy as set forth, and to request the above recommendations stated by Counsel, be pursued with the City. This was seconded by Ms. Brown and carried unanimously. ASSIGNMENT OF After signatures were affixed to Mr. Steiner's Professional CONSULTANT'S Services Contract, he changed his business to an 'S' CONTRACT Corporation. There are no changes to the basic contract or to the services agreed upon. The Board is asked for its consent to the assignment of the original Professional Services Contract to The Robert Steiner Company. Mr. Belcher moved that the Chair sign the contract as stated, this was seconded by Mr. Wanner and carried unanimously. DDA MINUTES PAGE 4 LPC UPDATE Mr. Frick, representing the Landmark Preservation Commission, advised that LPC had approved the concept of the Multi -Modal Transit Center at its January 13, 1998 meeting. He also reported that John Arnolfo, owner of the Silver Grill, had given a conceptual presentation of his project. The Commission is continuing its Rehabilitation Grant Program begun a couple of years ago, and the funding programs that are underway on Pine Street and North College, including the Northern Hotel's roof. Several other businesses have applied for assistance, in the amount of $45,000 however only $20,000 in funds is available. WORK/STUDY March 24, is the date now slated for the DDA Work/Study SESSION Session with City Council. The Board is asked to be present if at all possible. ADJOURN There being no further business, the meeting adjourned at 8:50 a.m. Jason Meadors, Secretary DOWNTOWN � dda DEVELOPMENT AUTHORITY 19 OLD TOWN SQUARE, SUITE 230 Telephone (970) 484-2020 FORT COLLINS, CO 80524 Telefax (970) 484-2069 TO: DDA Board of Directors FROM: Chip Steiner C DATE: February 28 1998 RE: Home State Bank Agreement Attached to this memorandum is a draft copy of the agreement between the DDA and Home State Bank for the reimbursement of $190,000 in sidewalk, utility, and landscape improvements around the project located at the southeast corner of East Mountain and Mathews.. The terms of the agreement are similar to all deals the DDA is involved with. 1. Payment for the improvements will occur only after the project is completed; 2. An accounting of the costs of the improvements provided to the DDA by the contractor; 3. DDA must accept the improvements and verify that they were done substantially in compliance with the design; 4. City approval of the improvements must be obtained prior to the release of funds. In addition, the owner is being asked (and has provided) documentation that the work was competitively bid. This is intended to satisfy current city requirements. Maintenance of the improvements will be the responsibility of the project owner to the extent that the City will not do such work itself. The project owner will indemnify the DDA against damage, liability, loss or expense connected with the improvements. This project differs from recent DDA deals in one significant way: tax increment financing is being used rather than administrative resources. The Authority has the funds available for this project in its tax increment reserve account. But, as the Board is aware, tax increment monies can only be used to service debt. A tentative agreement has been reached with First State Bank to borrow the funds at an interest rate two percent below prime and with no loan fees. Once the loan documents are signed the debt will immediately be repaid. The draft agreement attached to this memorandum does not include a paragraph addressing a guaranteed minimum tax increment generation. Legal counsel will provide the Board with the appropriate language to insert at the Board meeting. Although tax increment funds cannot be utilized without a extant DDA, the money cannot be spent without City approval. Therefore, to make this deal work, the City must grant the tax increment monies to the DDA. This requires City Council action and the item is scheduled for consideration March 17. AGREEMENT This Agreement is made and entered into this _ day of March,1998, by and between The Fort Collins Downtown Development Authority, a body corporate and politic, whose address is One West Art Center, 201 South College Avenue, Fort Collins, Colorado 80524 (the "DDA") and K & M Company, a Colorado General Partnership, whose address is Corporation, whose address is and 541 Investment WITNESSETH: Co., a Colorado _("Owners"). WHEREAS, the Owners have recently developed the following -described property, known as the "Mawson Block" (the "Property"), which is located within the boundaries of the DDA: Lots 8, 9, 19, 11, 12, 13, 14 and 15 inclusive; Block 141, City of Fort Collins, County of Larimer, State of Colorado. The street address of the Property is and WHEREAS, in accordance with the legislative purpose of downtown development authorities as set forth in C.R.S. §31-25-801, the DDA has substantial interest in the development, redevelopment and renovation of property within its boundaries and particularly the renovation of existing buildings in a manner consistent with the historic character of downtown Fort Collins; and WHEREAS, in exchange for certain commitments from the Owners in connection with the design, construction, maintenance and use of certain public improvements adjacent to the Property, the DDA has agreed to reimburse the Owners for a portion of the costs of such improvements; and WHEREAS, the Board of Directors ofthe DDA, at a duly -convened meeting, determined that this Agreement is consistent with the goals and purposes of the DDA and thereupon approved the terms of this Agreement and authorized the Chairman of the Board of the DDA to execute it. NOW, THEREFORE, by and in consideration of the above premises and the within terms and conditions, the parties hereto agree as follows: PUBLIC IMPROVEMENTS The Owners agree to make those public improvements adjacent to the Property set forth on Exhibit A attached hereto and incorporated herein by reference (the "Improvements"). The Improvements shall generally consist of utility, street, sidewalk, landscaping improvements, with associated grading work. 2. CONDITIONS TO THE IMPROVEMENTS In contemplation of this Agreement, the Owners designed the Improvements for that area directly abutting the and property lines of the Property. Such design, a copy of which is attached hereto as Exhibit "A" and incorporated herein by reference, has been submitted to and approved by the DDA. The Owners will cause the Improvements to be constructed substantially in accordance with the approved design therefor. Upon the occurrence of all of the following events, the DDA shall pay to the Owners a sum equal to the actual design and construction costs of the Improvements, but in no event shall the sum exceed One Hundred Ninety Thousand Dollars ($190,000.00): 2.1 Approval by the appropriate department of the City of Fort Collins ("City") of the completed Improvements; and 2.2 Approval by the DDA of the completed Improvements in accordance with the approved design therefor; and 2.3 Submittal by the Owners' construction contractor to the DDA an accurate and detailed accounting of the costs of the Improvements. 2.4 Submittal to the DDA of documents demonstrating that the work for the Improvements was competitively bid and that the Owners provided the City with financial guarantees for completion thereof. 2.5 Submittal to the DDA of documentation evidencing that the Owners have completed construction of private improvements to the Property in at least the amount of $ 2.6 Appropriation. In the event that payment as required herein is not made by December 31, 1998, the payment obligation of the DDA shall thereafter be expressly subject to an annual appropriation by the City of Fort Collins and the DDA for such purpose. 3. THE OWNERS' CONTINUING OBLIGATIONS The following provisions of this paragraph 3 shall apply to the Property and shall be binding upon all future legal owners of the Property. 3.1 Maintenance. If any of the Improvements have not been accepted by the City for permanent maintenance, the Owners shall be obligated to maintain, repair and replace such Improvements, including replacement of all or a part thereof if necessary, in a manner which will preserve them in substantially the same condition as that existing at the time of completion of the same. 2 3.2 Indemnification. The Owners shall indemnify and hold the DDA harmless from and against any damage, liability, loss or expense (including attorneys' fees) incurred by the DDA arising out of or in any way connected with the construction of the Improvements and the maintenance thereof until such time as the City accepts the same. 4. COVENANTS The provisions of this Agreement and the burdens and benefits therein shall be covenants running with the Property during the Grant Term and shall inure to the benefit of, and be binding upon, all future owners of the Property. This Agreement shall be recorded with the Clerk and Recorder of Larimer County, Colorado. 5. SUCCESSOR ENTITY TO THE DDA In the event that the legal existence of the DDA terminates during the term of this Agreement, it is expressly acknowledged by all the parties hereto that the City of Fort Collins is designated the DDA's successor entity, and all rights and obligations of the DDA set forth herein shall thereupon become the rights and obligations of the City of Fort Collins. 6. CITY OF FORT COLLINS AS THIRD -PARTY BENEFICIARY It is expressly acknowledged by the parties hereto that the City of Fort Collins is a third -party beneficiary to this Agreement and shall be entitled to enforce any and all provisions of this Agreement in the same manner as the DDA. ��►L���[4mly All notices which may be given to parties hereunder shall be in writing and shall be sent to the parties at the addresses specified below: DDA: The Fort Collins Downtown Development Authority ATTN: Anne Garrison One West Art Center 201 S. College Avenue Fort Collins, CO 80524 3 THE OWNERS: K & M Company, A Colorado General Partnership 541 Investment Co., A Colorado Corporation or to any change of address given in writing by one party to the other. 8. ATTORNEYS' FEES AND COSTS Should any party default in any of the covenants or obligations in this Agreement, the defaulting party will pay all reasonable expenses of enforcing this Agreement, including reasonable attorneys' fees. 9. GOVERNING LAW This Agreement shall be governed by, and its terms construed under, the laws of Colorado. 10. BINDING EFFECT This Agreement shall inure to the benefit of, and be binding upon, the heirs, personal representatives, successors and assigns of the parties hereto. DATED the date set forth above. DDA: THE FORT COLLINS DOWNTOWN DEVELOPMENT AUTHORITY, a body corporate and politic In Kermit Allard, Chair 4 OWNERS: K & M COMPANY, a Colorado General Partnership 0 0 John R. Moore, Partner Thomas K. Moore, Partner 541 INVESTMENT COMPANY, a Colorado Corporation Un Harry Devereaux, President ddoDOWNTOWN DEVELOPMENT AUTHORITY 19 OLD TOWN SQUARE, SUITE 230 FORT COLLINS, CO 80524 TO: DDA Board of Directors ` FROM: Chip Steiner DATE: February 28, 1998 RE: Anne Garrison Contract Telephone (970) 484-2020 Telefax (970) 484-2069 Anne Garrison's contract needs to be renewed. The 1997 contract and job description are attached to this memorandum. During the 1998 budget review process last year the Board of Directors approved a 3.5 percent increase in staff salaries. A 3.5 percent increase in Anne's compensation would provide for an annual salary of $28,200.65 for the period March 20, 1998 through March 19, 1999. For the 1998 budget year, the outlay is $27,962 (this is derived by three months' salary at Anne's current salary level plus nine months at the increased level). The total employment compensation package changes as follows: Contract period 3/20/97 - 3/19/98 3/20/98 - 3/19/99 Salary $ 27,247 $ 28,200 Employee Group Life Insurance 100 24 Unemployment Compensation(1) 150 166 Health insurance 4,000 4,198 Social Security 401 415 ICMA (retirement) 1,771 1,833 Dental insurance 260 270 Worker's compensation(2) 68 53 Long-term disability(3) 150 79 Totals: $ 34,147 $ 35,238 (1) Group life has dropped because the 1997-98 figure was never adjusted to reflect that the DDA was only paying for one, not two, employees and because the premium went down. (2) Worker's compensation drops because according to the City the multiplier fell from .26 to .19. (3) Long term disability was over budgeted in 1997; thus the reduction for 1998. The actual salary increase is for the Board of Directors to determine. The Authority has $8,000 available in contingency should the Board decide upon a higher compensation package. Based upon my own observations and the feedback I get, Anne does an exemplary (that's British for "top drawer" which is also British and means great or super) job and has earned a pay raise. DDA ADMINISTRATIVE MANAGER Job Description EXEMPT: Yes JOB CODE: 3396 SALARY LEVEL: Per Contract DIVISION: DDA LOCATION: 201 South College Avenue DEPARTMENT: DDA EMPLOYEE: Anne Garrison REPORTS TO: DDA Board of Directors SUMMARY: This is a full time position. Employee oversees the Downtown Development Authority (DDA) office and oversees the programs administered through the DDA. Works as a liaison to the DDA Board of Directors by performing increasingly important administrative and business details and maintaining the DDA office. ESSENTIAL DUTIES AND RESPONSIBILITIES include the following: Performs the day to day duties and operations of running the DDA office including phone answering, customer service, handling written and verbal correspondence, filing, paying bills, and record keeping; Under direction of the Board or other assigned personnel, helps DDA clients in the process of bringing downtown projects, issues, plans, to the Board for its consideration; Serves as liaison to the City of Fort Collins and other relevant agencies and organizations; Compiles and types business and statistical reports; Records minutes of Board of Directors meetings; Provides similar services to other organizations as directed by the Board of Directors of the Downtown Development Authority. CONTRACT THIS AGREEMENT, is made and entered into this 20th day of March 1997 between the Downtown Development Authority of Fort Collins, hereinafter referred to as "DDA" and Anne J. Garrison, hereinafter called "EMPLOYEE", pursuant to these terms and conditions: WHEREAS, the DDA wishes to employ the services of Employee as DDA Administrative Manager, and the Employee wishes to provide her services to the DDA in that capacity; and WHEREAS, the DDA and Employee desire to provide for certain procedures, benefits and requirements regarding the employment of Employee by the DDA. NOW, THEREFORE, for and in consideration of the mutual covenants and promises herein contained, the DDA and Employee do hereby agree to the following: 1. Scone of Services The DDA agrees to employ the Employee as DDA Office Manager and the Employee agrees to perform all functions and duties as specified in the job description attached hereto as Exhibit "A" and incorporated herein by reference. The DDA may designate a supervisor of the Employee. 2. Comoensation Commencing March 20, 1997 Employee shall be compensated at the rate of $1,060.09 bi-weekly, (plus reimbursement for actual approved expenses.) All payments shall be made bi-weekly for the remainder of the contract term. Employee shall maintain and submit to the DDA a log of all hours worked and all approved expenses incurred prior to any payment. 3. Term of Employment A. The term of this agreement shall be from the date of execution hereof to and including March 20, 1998. B. Nothing contained herein shall preclude renegoti- ation of this Agreement prior to the expiration of its term. C. It is understood and agreed to by the Employee that upon termination of this Agreement, either under this paragraph or under the provisions of Paragraph 14 hereof, the Employee shall not be entitled to any amount of additional compensation, as severance pay #otherwise, other than as pAided in Paragraph 14 and 06 of this Agreement. 4. Early Termination Either party may terminate this Agreement without cause prior to the expiration of the term hereof, by providing written notice of termination to the other party at least thirty (30) days prior to the date of early termination. Such notice shall be deemed effective as of the date of deposit into the United States mails, postage prepaid, addressed as follows: EMPLOYEE Anne J. Garrison 2260 Hiawatha Court, Fort Collins, CO 80525 EMPLOYER DDA/Board of Directors One West Contemporary Art Center 201 South College Avenue, Fort Collins, Co 80524 5. Insurance Coverage A. The DDA through the City shall make available to the Employee the same Flexible Benefit plans, along with long term disability and access to the Employee Assistance Program, for the Employee and dependents as provided under group plans for classified City employees. 6. Vacation, Holidays, Sick Leave, Retirement, Other Leaves/ Benefits A. Vacation is earned and credited bi-weekly at a rate based on the number of year's service with the DDA. Approval and timing of vacation shall be determined by the DDA Board of Directors with due consideration to the wishes of the employee and the needs of service. Vacation leave may be taken as earned in accordance with Exhibit "B". Employee will normally take vacation leave within one calendar year from the day earned. In no case may employee use more leave than earned. The employee may carry up to twice the amount of the December 31st vacation accrual rate up to a maximum of thirty (30) days from one calendar year to the next. The employee will forfeit vacation leave in excess of this amount without compensation unless the DDA Board of Directors grants an extension. B. Emp: ee shall be entitled to the )llowing nine (9) paid' -holidays if employed under the terms of this contract when they occur: New Year's Day, Martin Luther King Day, President's Day, Memorial Day, 4th of July, Labor Day, Veteran's Day, Thanksgiving and Christmas, plus two (2) floating holidays. C. Employee shall be granted up to ninety (90) days of sick leave in any twenty four (24) month period. As a new hire, employee shall receive fifteen (15) days during the first six (6) months. Employee shall not be granted sick leave until after the first thirty (30) calendar days of employment. Employee shall be permitted to use sick leave in the same manner which a City classified employee is permitted to use sick leave. D. Upon termination of employment pursuant to the contract, Employee shall be entitled to receive compensation for any unused vacation leave; however, Employee shall not be entitled to any compensation for unused sick leave. E. In lieu of Social Security, DDA will contribute 6.05% of gross annual salary into a 457 deferred compensation plan. F. Employee is eligible to participate in the Dental Reimbursement Plan in the same manner as a City Classified employee. G. Employee may be granted up to five (5) working days annually to care for immediate family members (see below) living in her home in cases of major or minor illnesses, childhood diseases or injuries. Guidelines for use of dependent care leave are as follows: * Birth or surgery: One (1) day emergency leave if birth or a surgery is on a scheduled working day; then up to five (5) days dependent care leave if care is required upon release from hospital. * Childhood diseases, Injuries and illnesses. Up to five (5) days dependent care leave. Immediate family is defined as: mother, father, spouse, stepmother, stepfather, foster mother, foster father, mother in law, father in law, daughter in law, son in law, grandmother, grandfather, sister(s) brother(s) child(ren), or any other relative actually living in the same household. H. Employee shall be entitled to one hundred and twenty (120) hours of paid military leave in the same manner which a City classified employee is permitted to use military leave. *loyee may be granted lea0 with full pay when performing jury duty or when required to serve as a subpoenaed witness in any municipal, county, state, or federal court, or before an administrative tribunal. J. Employee will be eligible for Emergency Leave, Injury Leave and Worker's Compensation in the same manner which a City classified employee is eligible. K. Employee will not be eligible for the General Employee Retirement Plan (GERP) or for tuition reimbursement. 7. Applicabiity of Personnel Policies The Personnel Policies and Practices of the City shall not be applicable to the Employee or this Agreement. S. Default Each and every term and condition of this Agreement shall be deemed to be a material element of this Agreement. In the event either party shall fail or refuse to perform according to the terms of this Agreement, such party may be declared in default thereof. 9. Remedies Upon Default In the event a party has been declared in default hereof, such defaulting party shall be allowed a period of five (5) days within which to cure said default. In the event the default remains uncorrected, the party declaring default may elect to: (a) terminate the Agreement and seek damages; (b) treat the Agreement as continuing and require specific performance; or, (c) avail him/her of any other remedy at law or equity. In the event the Employee fails or neglects to carry out the work in accordance with the Agreement, the DDA may elect to make good such deficiencies and charge the Employee therefor. In the event of default of any of the agreements herein by either party which shall require the party not in default to commence legal or equitable actions against the defaulting party, the defaulting party shall be liable to the non defaulting party for the non defaulting party's reasonable attorney's fees and costs incurred because of the default. 10. Proprietary Rights The DDA shall retain ownership of and the right to reproduce market, license, or otherwise distribute any program or material produced by the Employee under the terms of this Agreement. 11. Entire A4 emen This writing constitutes the entire agreement between the parties hereto. 12. This Agreement shall be binding upon the parties hereto and the heirs, successors and assigns of each respectively. ATTEST: DOWNTOWN DEVELOPMENT AUTHORITY OF TH ^ CITY OF FORT COLLINS, CQLORADO S phen Slezak, C a Anne J. GaY ison, Employee