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HomeMy WebLinkAboutDowntown Development Authority - Minutes - 04/01/1999AWNTOWN • DEVELOPMENT ddoAUTHORITY 19 OLD TOWN SQUARE, SUITE 230 Telephone (970) 484-2020 FORT COLLINS, CO 80524 Telefax (970) 484-2069 DOWNTOWN DEVELOPMENT AUTHORITY Regular Directors' Meeting Kermit Allard, Chair 482-1893 (W) Chuck Wanner, Council Liaison 484-0810 (H) Anne Garrison, Staff Liaison 484-2020 (W) MINUTES OF APRIL 1, 1999 REGULAR MEETING The Board of Directors of the Downtown Development Authority met in regular session at 7:30 a.m. on April 1, 1999 in the conference Room at Home State Bank, 303 East Mountain Avenue. PRESENT There were present: Kermit Allard, Chair Mary Brayton, Vice Chair Jason Meadors, Secretary Steve Slezak Chuck Wanner Larry Stroud John Pitner ABSENT Greg Belcher, Treasurer Margaret Brown STAFF Jay Hardy, Executive Director Anne Garrison Lucia Liley, Legal Counsel GUESTS Chip Steiner, Tom Livingston, John Fischbach, Bill Sears, Angela Milewski CALL TO ORDER Mr. Allard called the meeting to order at 7:30 a.m. and roll call was taken. APPROVAL OF Mr. Meadors moved to adopt the minutes of March 4, 1999 as written, MINUTES this was seconded by Mr. Pitner and carried unanimously. DDA MINUTES PAGE ARMSTRONG HOTEL Mr. Hardy provided the Board with background information on the project, and introduced Consultant, Chip Steiner and Project Manager, Tom Livingston who are representing Old Town Hotels, L.I.C. Formerly known as the Mountain Empire Hotel, this project reflects the goals of Downtown and the City Plan and provides the opportunity for an upscale Boutique Hotel in the City area utilizing a building that is a local historic landmark. The restoration of many historic elements are part of the project and the hotel will fill a need for conference rooms, one of which will hold up to one hundred people. Plans are in place to redevelop the entire main floor which is about 6,000 sq ft, to accommodate the lobby and meeting rooms, with an approximate 6,000 sq ft reserved for retail. Discussions are underway with Fort Collins Roral and other retailers to determine whether or not the finished space will suit their needs. Integration of retail to the lobby is planned, while the restaurant will be separate. DDA participation is being sought in the amount of $240,000 for the facade acquisition. This amount would be supported by tax increment which is projected to generate approximately $288,000 over an estimated four and one half years. Owner participation stands at about 95%. Mr. Steiner added that the owners are seeking a $95,000 grant from the National Historic Society, and if so, standards of the Secretary of the Interior will apply, which are quite rigorous, and similar to those applied to the Linden Hotel. Referenced in Mr. Hardy's accompanying memo is the question of parking, which has not yet been solidified, although some avenues are being explored. Mr. Livingston addressed the subject in more depth, explaining that there were twenty two guest parking spots currently available, and that negotiations are underway to lease space from surrounding parking lot owners, with a view to providing valet shuffle service. If the demand is there, this service could also be used on a per car pay basis by the retail tenants, and thus not cause any additional parking congestion. Research indicates that while on -College parking is at a premium, parking located off this corridor is relatively open. Water and sewer systems are adequate, electrical will need to be upgraded with an underground transformer, and some overhead cables, which currently exist, will be buried. The question was raised as to how the project would be funded. DDA would borrow the money to create a debt obligation. It is possible we would have funds on hand to reconcile immediately, and thus avoid finance charges. Counsel confirmed that payment would be rendered on completion as is DDA's custom, and inquired about an estimated date of completion. Mr. Steiner responded that May 2000 is projected. Ms. Liley then reminded the Board that just as we did with Home State Bank and the Northern Hotel it will be necessary to draft an agreement with the City, ordinances will need to be done, Bond Counsel's opinion sought, etc., and a determination as to who will pay these costs. Ms. Liley agreed to check with City Attorney's office to clarify some of the concerns raised. Counsel explained that even though tax increment is DDA's reserve fund, Bond Counsel has advised that technically it is City monies, which is why the use of this fund may trigger bidding and bonding requirements. DDA MINUTES PAGE Ms. Brayton moved that DDA commit $240,000 to the project, contingent upon the final agreement including a requirement for off-street parking for employees, and that the cost include any City required bidding and bonding requirements, this was seconded by Mr. Wanner and carried unanimously. MULBERRY/LEMAY Ms. Liley declared a conflict of interest and declined to take part in the CROSSING discussion. It is also noted that the Wal-Mart Annexation Agreement was prepared by the office of Jim Martell. In light of the upcoming election, and upon reviewing the file, it appears much discussion has taken place with regard to DDA's position on this issue. Also contained in the file is an Annexation Agreement prepared and signed by the Developer, Mark Goldberg, and directed to our attention in October 1998. The Board has not yet authorized the Chair to sign this agreement which leaves the Developer with no obligation to formalize it. Of recent date, two editorials have appeared in the Coloradoan referencing DDA as a financial beneficiary in the event the project passes. The question before the Boad is whether or not the Annexation Agreement needs to be signed prior to the election. Mr. Hardy further indicated that if this is the direction the Board wishes to take, he would recommend sending the Agreement accompanied by a letter stating that with the signing of this document we are looking to move forward. Ms. Brayton moved to direct the Chair to sign and formalize the Agreement with the Developer for Annexation into the DDA. This was seconded by Mr. Slezak and the motion carried with Mr. Wanner abstaining. Counsel was requested at this juncture, to speak to the generic process of an annexation. When an Annexation petition is received it must first be approved by the Board, following which it goes to City Council for an ordinance. Council will then adopt the ordinance amending the DDA boundaries. This can only occur after any contingencies within the petition are met. POUDRE RIVER PROPERTYMr. Hardy introduced Bill Sears, spokesman for the Poudre River Property OWNERS ASSOCIATION Owners Association, a group recently formed because of their interest in upcoming development which may impact their properties. Of special interest to them is the possible location of the Horticultural Center. The group feels that time and money was spent by the City to lay out that area of town, which has not been the beneficiary of many projects. They therefore seek DDA's assistance in helping them stay in the information loop. They would also like a voice in the site selection. LPC UPDATE Angela Milewski, representative of the Landmark Preservation Commission was present and reported that there was no new information at this time. ELECTION OF OFFICERS In the past, election of the Executive Board has taken place the month following the appointment of new Board Members. This has placed them at a disadvantage, since they do not know the members well enough to cast their vote. Therefore it was suggested that elections be held in May prior to these appointments. This was agreed to by the Board. DDA MINUTES PAGE CHIP STEINEWS The Board is invited to attend a pot luck dinner and presentation to APPRECIATION honor Chip Steiner and his many years of service to the DDA. The event will be held at the Adriel Hills Club House on April 11, between 12:30 and 2:00 p.m. for the Board, followed by an Open House for other invitees. ADJOURN There being no further discussion, the meeting adjourned at 8:35 a.m. Jason Meadors, Secretary ddaItWNToW" • DEVELOPMENT AUTHORITY 19 OLD TOWN SQUARE, SUITE 230 FORT COLLINS, CO 80524 To: DDA Board of Directors From: Jay Hard AA/ Date: May 13, 1999 ( Re: Art in Public Places Telephone (970) 484-2020 Telefox (970) 484-2069 During 1998, the City of Fort Collins presented an Art in Public Places concept to the Board of Directors. Over the past several months, this committee has been meeting to select the artist for the $230,000 project. Margaret Brown served the DDA as a member of this committee. The selection process is in the final stages and the artist will be in attendance to discuss his project, how it fits downtown, and any concerns the Board may have. During this visit the artist will also be visiting the DBA and City Council. AWNTOWN � DEVELOPMENT AUTHORITY 19 OLD TOWN SQUARE, SUITE 230 FORT COLLINS, CO 80524 To: DDA Board of Directors From: Jay Date: May 13, 1999 Re: City Drug Building —101 S. College Ave. Telephone (970) 484-2020 Telefax (970) 484-2069 The Kaplan Company, Inc. is planning a renovation of the City Drug building located at 101 S. College Ave. Les Kaplan and I have met a couple of times over the past month discussing the plans for renovation and the possibility of DDA participation in this project. The renovation of this building will feature three main elements.. 1) A decorative canopy and lighting system over the main entrance on Mountain Ave., creating a `2nd substantial entry' to the building, as well as adding to a dimly lighted area; 2) Renovation of the interior of this Mountain entrance, including a large atrium central to the second floor, as well as renovation of tenant finish of second floor; 3) Replacement of HVAC, second floor windows, and fagade `cleaning'. The Kaplan Company, Inc. is requesting DDA participation of $73,000. Total private investment is over $1.2 million, creating taxable improvements of $559,280.75. Tax increment would support this project at the requested level; however, it is in excess of the standard 10% DDA participation. ($559,280.75 x commercial factor of .29 x mill levy of .0905 x 5 years) Full tax increment would not allow for any costs, which would likely occur in creating the debt to cover the project. The DDA would institute an easement for the fagade acquisition. This historic building along with the adjoining building (107-115 S. College Ave.) renovation is a great opportunity to enhance the highest traffic intersection (both pedestrian and automobile) in downtown. Given the positive impact of this project to downtown, DDA participation seems to be appropriate. ddadbwrvrowry • DEVELOPMENTAUTHORITY 19 OLD TOWN SQUARE, SUITE 230 FORT COLLINS, CO 80524 To: DDA Board of Directors From: Jay Hard6 Date: May 13, 1999f Re: 107-115 S. College Ave. Telephone (970) 484-2020 Telefax (970) 484-2069 Imago Enterprises, Inc. is currently in the process of renovating this building located at 107-115 S. College Ave. Nico's Catacombs, the T-Shirt Gallery currently occupy this building. Gib's NY Bagels will be opening later this month in the space previously occupied by Threads Clothing Co. Les Kaplan and I met last month to discuss the plans for this renovation. The renovation will return the facade to the late -Victorian appearance, along with the preservation of many elements of the recessed arcaded area containing the lower stairwell. Additionally, the second floor of the building will undergo an extensive renovation including windows, restrooms, tiling, as well as exterior lighting for the building. All mechanical, electrical and plumbing will also be renovated. Imago Enterprises, Inc. is requesting DDA participation of $87,500. Total private investment into the property is over $1.3 million, with a taxable improvement of $666,948.48. As with the City Drug building, this request is in excess of 10%, but could be supported by the tax increment. Facade renovation costs for this project are $107,537. The DDA would again accept the facade easement for the building. However, full tax increment participation does not allow for any costs of indebtedness the project may incur. This building and its' tenants are important elements of downtown and Fort Collins. Additionally, the restoration of this building will have a major visual impact at a very high traffic area. The simultaneous renovation of both the City Drug and 107-115 S. College Ave. is an outstanding opportunity to have three corners of this intersection renovated in historic themes. DDA participation in the project would be appropriate. AWNTOWN � dda DEVELOPMENT AUTHORITY 19 OLD TOWN SQUARE, SUITE 230 FORT COLLINS, CO 80524 To: DDA Board of Directors From: Jay Hardf'r Date: May 13, 1999 Re: 185 N. College Ave. Telephone (970) 484-2020 Telefax (970) 484-2069 Mack and Jackie Anderson are planning the construction of a two-story structure on the southwest corner of LaPorte and College Ave at 185 N. College. This property was formerly owned by the DDA, and currently sits vacant, and in dire need of development. Chip Steiner is assisting the Anderson's in their development of the property. The project would consist of ground level restaurant and second floor office space. The Anderson's have experienced many challenges with this project (as outlined in your packet) and are anticipating construction this fall. As the intersection of LaPorte and College continues to gain significance through the construction of the parking ramp, Justice Center, and City building, this project will be magnified immensely over the next few years. This property is currently the home of arbitrary parked vehicles and a retention pond each time it rains. As the Northern Hotel across the street enters a redevelopment opportunity, the timing for this project is ideal. The opportunity for a two-story `end -cap' building at this intersection can be a great asset for downtown. The Anderson's are requesting $105,600 of DDA participation. Total private investment of the building will be in excess of $1 million. Total assessed value of the building at completion is $1.2 million (according to Larimer County assessor). The DDA would take ownership of the fagade in this project, which the tax increment will support. Additionally, the tax increment will allow for the costs associated with creating the debt for the project. Finally, the DDA has carried an emotional and financial investment in this project for over 13 years. The opportunity for the DDA to participate in this important corner would simply reinforce our efforts to enhance that area of downtown.