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HomeMy WebLinkAboutDowntown Development Authority - Minutes - 02/11/1999dbwNrowry • 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 FEBRUARY 11, 1999 REGULAR MEETING The Board of Directors of the Downtown Development Authority met in regular session at 7:30 a.m. on February 11, 1999 in the Board Room at Home State Bank, 303 East Mountain Avenue. PRESENT There were present: Kermit Allard, Chair Mary Brayton, Vice Chair Greg Belcher, Treasurer Jason Meadors, Secretary Steve Slezak Chuck Wanner Larry Stroud Margaret Brown John Pitner STAFF Chip Steiner, Consultant Anne Garrison Lucia Liley, Counsel GUESTS CALL TO ORDER APPROVAL OF MINUTES Douglas Gennetten, Darin Atteberry Mr. Allard called the meeting to order at 7:35 a.m. and roll call was taken. Mr. Meadors moved to adopt the minutes of January 14, 1999 as written, this was seconded by Mr. Stroud and carried unanimously. DDA MINUTES • • PAGE 2 251 LINDEN STREET In reintroducing this project to the Board, Mr. Steiner referred to the October motion tabling a decision until the appropriation of funds had been approved by City Council. The request by Douglas and Renita Gennetten is for $20,000. DDA participation fits within the guidelines of 10% if the whole project is completed. Mr. Gennetten indicated he was experiencing some delay with the bidding process. Mr. Atteberry offered to check into it. The building is to be completed in two phases, the timeline being as follows: Phase 1.................................... End of 1999 Phase 2 ..........................(earliest)... End of 2000 There was discussion about splitting participation to correspond with the end of each phase, and the Board was reminded that monies being paid in 2000 would have to be reappropriated by City Council. Mr. Belcher moved that funds be provided at the end of Phase 1, in the amount of $10,000 with a further $10,000 being appropriated for Phase 2, at a later date. The latter to be conditional upon reappropriation. In addition, the applicant must return within two years, or reapply for the $10,000 balance. This was seconded by Mr. Meadors and carried unanimously. PASSARIELLO Mr. Steiner committed himself to the pursuit of a fitting tribute for Debra MEMORIAL Passariello, until such time as the new Executive Director is installed. The memo contained in the packets offers some of the ideas being considered. CONSULTANT'S The Board confirmed that Mr. Steiner's month to month contract with the DDA CONTRACT stands without need for further action on the part of the Board. PARKING ISSUES Ms. Brayton raised the problem of all day employee parking on College Avenue in particular, the resulting impact on merchants and the lack of space for customer vehicles. Again, Darin Atteberry agreed to look into the matter. OTS MAINTENANCE Messrs. Belcher and Slezak reported on a meeting they attended together with John Fischbach to discuss maintenance and other issues pertaining to Old Town Square. It was proposed that the City undertake the responsibility for the maintenance of Old Town Square, together with the general downtown area. It was evident that the City's vision incorporated the upcoming Civic Center Building. Old Town Square Property Management offered to pay $50,000 per annum toward maintenance costs, and this is the proposal currently on the table. Mr. Steiner suggested a contractual connection be made between City maintenance and the level of POTS property tax liability. EXECUTIVE SESSION At this juncture, there was a motion made by Mr. Meadors, seconded by Mr. Belcher that the Board adjourn to Executive Session for the purpose of discussing personnel issues. Emerging from Executive Session, Mr. Slezak made a motion to schedule a second interview for the two finalists, Dan Guimond and Jay Hardy, at which time the full Board will participate and make a decision. References are to be checked for both candidates. DDA MINUTES PAGE 3 The motion was seconded by Mr. Wanner and carried unanimously. It was requested a special meeting be convened for Wednesday February 17, 1999 beginning at 5:30 p.m. and allowing one hour for each candidate. ADJOURN There being no further discussion, the meeting adjourned at 9:25 a.m. Jason Meadors, Secretary dtwNrowry • DEVELOPMENT AUTHORITY 19 OLD TOWN SQUARE, SUITE 230 FORT COLLINS, CO 80524 TO: DDA Board of Directo FROM: Chip Steiner CJ DATE: March 4, 1999 RE: Anne Garrison Contract Telephone (970) 484-2020 Telefax (970) 484-2069 Anne Garrison's contract runs March to March and is due for renewal. Ms. Garrison's compensation history with the DDA is as follows: 1995 Salary--$25,000 Benefits $6,250 1996 Salary--$26,249 (+5%) Benefits--$6,563 1997 Salary--$27,247 (+5%) Benefits--$6,900 1998 Salary $28,200 (+3.5%) Benefits $7,038 With the change to a full time, "in-house" executive director, Ms. Garrison can expect increased responsibilities and work load. Furthermore, through the past year and especially in the last quarter of the year, Ms. Garrison has provided outstanding service to the Authority as it searched for a new director. Together, these suggest a 7.5% increase in compensation to be appropriate. This would bring Ms. Garrison's salary to $30,315 and her benefit package to $7,565. The Board may wish to consider changing Ms. Garrison's contract to conform to the DDA's budget year (which is the calendar year). To do so, the contract presently under consideration should be renewed for a ten month period and a new contract considered at the end of 1999. Two other changes to the contract: 1. It includes the addition of a clause providing for DDA payment of a parking permit in the Remington Parking Garage. The Authority already pays for this but it is being made a part of the contract. 2. It specifically states that the employee works under the supervision of the executive director. Although the approved 1999 budget does not include an allowance for a 7.5% increase in Ms. Garrison's salary, it can accommodates the change. For use both with this item and for the executive director's contract consideration an estimate of a revised budget resulting from the changes in DDA management looks like this (only changes are noted. The "+" means increased expenditures; the ` -" means a decrease in expenditures; therefore, the negative net change means projected expenditures for the year have been reduced —this is good). Was Will be Total chana Cummulative Personal Services 36,215 94,742 +58,527 58,527 Contractual Services Mileage 0 2,400 + 2,000 60,527 Contractual Labor 85,000 14,000 - 71,000 -10,473 Office Rent 4,032 6,032 + 2,000 - 8,473 Meals 350 1,000 + 650 - 7,823 Commodities 2,150 2,560 + 410 - 7,003 Capital Outlay 100,000 104,000 + 4,000 - 3,003 Net change All changes were pro rated based on the remaining 10 months of 1999. - 3,413 EMPLOYMENT CONTRACT THIS AGREEMENT, is made and entered into this 4th day of March 1999 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. Scope 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 Employee shall work under the direct supervision of the DDA Executive Director. 2. Compensation Commencing March 4, 1999 Employee shall be compensated at the rate of $1,165.96 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 B. Nothing contained herein shall preclude renegotiation 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 #4 hereof, the Employee shall not be entitled to any amount of additional compensation, as severance pay or otherwise, other than as provided in Paragraph #4 and #6 of this Agreement. 4. Early Termination Either parry 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 Executive Director 19 Old Town Square, #230 Fort Collins, CO 80524 5. Insurance Coveraee 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 31 st 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. Employee shall be entitled to the following 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. 0 I. Employee may be granted leave 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. L. DDA shall pay for one parking space in the Remington Street Parking Garage for the period of this contract. 7. Anplicabiity of Personnel Policies The Personnel Policies and Practices of the City shall not be applicable to the Employee or this Agreement. 8. 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 parry 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 Ri is 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 Agreement 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: Jason Meadors, Secretary DOWNTOWN DEVELOPMENT AUTHORITY OF THE CITY OF FORT COLLINS, COLORADO Kermit Allard, Chairman Employee Anne Garrison D�IWNTOWNdda � DEVELOPMENT AUTHORITY 19 OLD TOWN SQUARE, SUITE 230 FORT COLLINS, CO 80524 TO: DDA Board of Dire rs FROM: DATE: Chip Steiner March 4, 1999 RE: Executive Director Contract Telephone (970) 484-2020 Telefox (970) 484-2069 The DDA executive director's contract requires Board approval. The basic terms of the contract, which is attached, are essentially the same as the DDA has always used. Only the following terms have been adjusted specifically for the agreement with Mr. Hardy: 1. Salary is $55,000 2. DDA contribution to retirement is 9% of base salary 3. DDA provides a parking space as a benefit to the employee 4. The contract length is 10 months to keep it in sync with the DDA budget year. Subsequent contracts will be for a full year. EMPLOYMENT AGREEMENT THIS AGREEMENT, made and entered into this _ day of March, 1999 by and between the DOWNTOWN DEVELOPMENT AUTHORITY OF FORT COLLINS, hereinafter called "DDA" or "Employer", as party of the first part, and Jay Hardy, hereinafter called "Employee", as party of the second part, both of whom understand as follows: WITNESSETH: WHEREAS, DDA desires to employ the services of said Jay Hardy as the Executive Director of the Downtown Development Authority of Fort Collins; and WHEREAS, it is the desire of the Downtown Development Authority Board of Directors to provide certain benefits, establish certain conditions of employment and to set working conditions of said Employee; and WHEREAS, Employee desires to accept employment as Executive Director of said Fort Collins Downtown Development Authority. NOW, THEREFORE, in consideration of the mutual covenants herein contained, the parties agree as follows: Section 1. Duties. Employer hereby agrees to employ Jay Hardy as Executive Director of said DDA to perform those duties necessary and appropriate for the management of the DDA and to perform other legally permissible and proper duties and functions as the DDA shall from time to time assign. Section 2. Term. A. This Agreement shall commence on the 1 st day of March, 1999 and terminate on December 31, 1999 unless otherwise terminated as set forth herein. B. Employee agrees to remain in the exclusive employ of the DDA during the term of this Agreement, and neither to accept other employment nor to become employed by other employer until said termination date, unless said termination date is affected as hereinafter provided. The term "employed" shall not be construed to include occasional teaching, writing, consulting or military reserve service performed on Employee's time off, which endeavors shall not interfere with Employee's duties hereunder. C. Not less than 60 days prior to termination of this Agreement, DDA shall advise Employee of its desire to employ Employee for an additional one year term commencing on the expiration of the term of this Agreement. If DDA desires to retain Employee as Executive Director, DDA shall advise Employee at least 60 days prior to termination of this Agreement of the proposed terms of continued employment and Employee shall within 10 days of receipt of said terms accept or reject said offer. Section 3. Termination and Severance Pay. A. Employer may terminate this Agreement upon delivery of notice of termination to Employee. In such event, Employer shall pay Employee a lump sum cash payment equal to two (2) months salary provided that Employee shall not be entitled to any such severance pay if Employee is terminated for cause or for failing to fulfill his duties and obligations hereunder. B. Employee may terminate this Agreement by delivery to the Chairman of the Employer written notice of such termination. Such notice shall be given forty-five (45) days in advance of such termination, unless parties hereto otherwise agree. Section 4. Salar . Employer agrees to pay Employee for his services rendered pursuant hereto an annual base salary of $55,000.00 (Fifty Five Thousand Dollars and zero cents), payable in installments at the same time as other employees of the Employer are paid. In addition, Employer agrees to increase said base salary and/or other benefits of Employee in such amount and to such extent as the Board may determine that is desirable to do so on the basis of an annual salary review of said Employee. Section 5. Performance Evaluation. A. The DDA Board or its representatives shall annually or more often if Employer desires, review and evaluate the performance of the Employee. Such evaluation shall be prior to decision by DDA to continue employment of Employee. The Chairman shall provide the Employee with a written summary statement of the finding of the Board and provide an adequate opportunity for the Employee to discuss his evaluation with the Board or its representatives. B. Annually, or more often if Employer desires, Employer and Employee shall define such goals and performance objectives which they determine necessary for the proper operation of the Authority and in the attainment of the Board's policy objectives and shall further establish a relative priority among those various goals and objectives, said goals and objectives to be reduced to writing. They shall generally be attainable within the time limitations as specified and the annual operating and capital budgets and appropriations provide. C. In effecting the provisions of this Section, the Board and Employee mutually agree to abide by the provision of applicable law. Section 6. Hours of Work. Employee shall devote such time as is necessary to fulfill his duties and obligations hereunder. It is recognized that Employee must devote a great deal of time outside of the normal office hours to business of the Employer, and to that end Employee will be allowed to take reasonable compensatory time off during said normal office hours. Employee shall not be entitled to any compensation for compensatory time upon termination of this Agreement. Section 7. Automobile and Parkine. The Employee shall furnish his own automobile necessary to perform the functions and duties of his position and shall receive reimbursement for automobile allowance as permitted by IRS regulations for operation and maintenance of his own automobile when used for official business. DDA shall provide payment for one parking space in the Remington Street Parking Garage for so long as this agreement is in effect. Section 8. Vacation, Sick and Military Leave. A. The Employee shall receive ten (10) days of vacation leave which shall be used during the term of this Agreement or within forty-five (45) days thereafter. B. The Employee shall be credited with ninety (90) working days of sick leave which may be used during any twenty-four (24) month period of employment with Employer. C. Upon termination of employment by either party pursuant to this Agreement, Employee shall be entitled to compensation for all accrued vacation; however, Employee shall not be entitled to compensation for accrued sick leave. Section 9 Disability, Health and Life Insurance. A. Employer agrees to put force and to make required premium payments for Employee for insurance policies for life, accidental death, dismemberment, and long-term disability and major medical coverage group insurance covering Employee and his dependents, which policies are issued under the auspices of the City of Fort Collins. Any such insurance policies required hereunder shall provide the same benefits to Employee (and Employee's dependents) as are provided to employees of the City of Fort Collins through the City of Fort Collins' insurance program. Employer agrees to provide dental insurance to the extent possible within the budgeted funds for said insurance coverage and the extent possible under the terms of Employer's dental insurance carrier. u B. If directed to do so by Employer, Employee shall submit once per calendar year to a complete physical examination by a qualified physician selected by the Employer, the costs of which shall be paid by the Employer. Employer shall receive a copy of all medical reports related to said examination. Section 10. Retirement. Employer agrees to execute all necessary agreements provided by the International City Management Association Retirement Corporation (ICMA-RC) for Employer's participation in said ICMA-RC retirement plan. In addition to the base salary paid by the Employer to Employee, Employer agrees to pay an amount equal to 7.65 percent ($4,207.50) of Employee's base salary into the ICMA-RC on Employees behalf in equal proportionate amounts each pay period, and to transfer ownership to succeeding employers upon Employee's resignation or discharge, if Employee so desires. Employee may contribute his own funds to ICMA-RC retirement plan as he, at his sole discretion, may desire. Section 11. Dues. Subscriptions and Professional Development. A. Employer agrees to budget and to pay for the professional dues and subscriptions incurred by Employee within such budget necessary for his continuation and full participation in national, regional, state and local associations and organizations necessary and desirable for the good of the Employer. B. Employer hereby agrees to budget for and to pay the travel and subsistence expenses incurred by Employee within such budget for professional and official travel, meetings, and occasion adequate to continue the professional development of Employee and to adequately pursue necessary official and other functions for Employer and such other national, regional, state and local governmental groups and committees thereof which Employee serves as member. C. Employer also agrees to budget and to pay for the travel and subsistence expenses incurred by Employee within such budget for short courses, institutes and seminars that are necessary for his professional development and for the good of the Employer. Section 12. Civic Club Membership. Employer recognizes the desirability of representation in and before local civic and other organizations, and Employee is authorized to become a member of such civic clubs or organizations, for which Employer shall pay all expenses within those amounts budgeted by Employer for the same. Employee shall report to the Employer on each membership that he has taken out at Employer's expense. Section 13. General Provisions. A. The text herein shall constitute the entire agreement between the parties. B. This Agreement shall be binding upon and inure to the benefit of the heirs at law and executors of the Employee. C. If any provision, or any portion thereof, contained in this Agreement is held unconstitutional, invalid or unenforceable, the remainder of this Agreement or portions thereof, shall be deemed severable, shall not be affected and shall remain in fill force and effect. D. The terms and conditions hereof shall apply upon execution of the parties. IN WITNESS WHEREOF, the Downtown Development Authority of Fort Collins, Colorado has caused this Agreement to be signed and executed in its behalf by the Chair, and duly attested by its Secretary and the Employee has signed and executed this Agreement, both in duplicate, the day and year first above written. ATTEST: Secretary DOWNTOWN DEVELOPMENT AUTHORITY OF THE CITY OF FORT COLLINS, COLORADO Chair Jay Hardy dda6wNTOWN • DEVELOPMENTAUTHORI TY 19 OLD TOWN SQUARE, SUITE 230 FORT COLLINS, CO 80524 TO: DDA Board of FROM: Chip Steiner DATE: March 4, 1999 RE: Northern Hotc. Telephone (970) 484-2020 Telefax (970) 484-2069 Enclosed is a packet of information which spells out in some detail the redevelopment of the Northern Hotel. The developer is Funding Partners for Housing Solutions and the National Development Council. The purchase contract is to be signed March 5. Hard cost investment in the project is estimated at almost $6 million. The building is to be renovated to its 1936 Art Deco appearance. Street level will remain in commercial use. Upper floors will be affordable housing targeted for seniors. The development partnership is looking to the DDA for about 10 percent of the hard cost investment or $500,000 to $650,000. Based on a straight tax increment deal, the project would support a DDA investment of between $265,000 and $331,000. This figure is arrived at as follows: Investment generating a tax increment: Tax multiplier Mill levy (approx.) Tax increment generated Commercial Residential $6,000,000 $1,200,000 $4,800,000 .29 .08 $ 348,000 $ 384,000 .0905 .0905 $ 31,494 $ 34,752 Total annual tax increment: $31,494 34,752 $66,246 over four years = $265,000 over five years = $331,000. As noted, the request from Funding Partners for upwards of $650,000 is significantly higher than what can be supported by the projected tax increment from the project. The Board also needs to be aware that the City of Fort Collins is urging DDA participation at the $500,000 level (which has the net effect of reducing the City's level of participation). In other words, this project is important. The City has also pointed out that the DDA has $300,000 available to it from its previous commitment to the Horticultural Center which it could now divert to the Northern. First, this is not quite true since City Council hasn't yet formalized the decision to put the Center behind the Holiday Inn —although the outcome isn't in doubt. Jay Hardy expressed some reluctance to re- programming the $300,000 until the decision on the Horticultural Center is made official. I concur with this. Second, I believe it should be for the DDA to determine how the $300,000 is reprogrammed. That money was set aside for a public project that would have brought a wonderful and unique attraction into the central business district. Such a future purpose for the funds may yet emerge and it makes sense to set the monies aside for some other non -tax increment project. Nevertheless, redevelopment of the Northern is obviously important. Therefore, I suggest the Board consider a level of contribution higher than what is supportable by the increment generated by the project itself. However, because the City is urging the DDA to increase its level of participation beyond what can legitimately be supported with the tax increment, because increased DDA participation reduces City participation, and because City development fees (upon an existing property with existing improvements, with existing roads around it, with existing water and existing sewer lines serving it and with a 100 years' worth of property taxes already collected to pay for these "costs of growth") completely offset supportable tax increment participation ($331,000 in supportable tax increment debt vs. $376,772 in development fees), it seems reasonably fair to ask that City funds, not tax increment funds, guarantee any potential shortfall in debt service requirements. In other words, if this property doesn't generate enough property tax to pay for the agreed -upon level of DDA participation, the City be the financial backstop, not downtown -generated tax increment. A DDA commitment at this time is important to the other funding programs being sought by the development team. Historic preservation grant applications are due April 1. A DDA commitment will help leverage that request. The affordable housing tax credit application is due April 4. The DDA commitment will also help leverage that application. One last thing: restoring the Northern Hotel would be a significant milestone in the redevelopment history of downtown Fort Collins. The credit for this lies with Funding Partners and especially its Executive Director, Karen Gerard. Without her tenacity, patience, and creative financing the complex pieces of this puzzle would never have been brought together, much less assembled into a doable plan. FUNDING PARTNERS FOR HOUSING SOLUTIONS maliaa a!<ahvalle 1,?#eo is art!/%la roleeade March 1, 1999 Downtown Development Authority 10 Old Town Square Fort Collins, Colorado 80524 Dear DDA Board Members: I am writing to request DDA funding of a project which has been of great interest to the City of Fort Collins for a number of years: The renovation of the Northern Hotel. As you are aware, the building burned in the 1970's and has been partially condemned and vacant since that time. The following proposal, requesting DDA participation in the amount of $500,000 - $650,000 will cover approximately one half of the actual cost of the restoration of the facade and public lobby por- tions of the building, or approximately 10% of the hard costs of the overall project. Sufficient DDA funding will ensure the uncompromised quality of the building's restoration. Timely commitment of funding will significantly assist the Development Team in leveraging private, state and federal dollars, which comprise the vast majority of project funding. Thank you in advance for your favorable consideration of this request. We are most anxious to work with the DDA to bring this exciting project to successful fruition! Sincerely Karen G and Executive Director 301 EAS"F SRI'WAY DRIVE FOR'ICOLLINS, C01.ORA1)O 90525 • VAIL 10: P.O. BOX 2731 LOVELA%D, COLORADO) 80J39 • 970. 204. 1400 FAA: 970, 204. 1475 Project Description: Funding Partners for Housing Solutions and the National Development Council (NDC), form the Development Team working to redevelop the Northern Hotel, located at 172 North College Avenue in Fort Collins. The building burned in the 1970's resulting in portions of the building being condemned. The majority of the building's square footage is vacant, much of it in serous disrepair. The proposed redevelopment plan calls for the following features: 1. Historic renovation of the building to its 1936 Art Deco facade (see attached historic architectural drawings). 2. Designation of the first floor of the building, 13,800 square feet, for Commercial Retail use. Both College Avenue and Walnut Street sides of the building will have restored storefronts. 3. Designation of the renovated lobby as public space. 4. Designation of the top three floors of the building for rental housing units. Forty-seven apartments will be created: 6 efficiencies, 38 one bedrooms and 3 two bedroom units. Rents will range from approximately $375-$480 making them ideal for senior citizen occupancy. The funding sources identified for this project require professional management of apartment units and 'a minimum $300/unit/year Replacement Reserve. These measures are required to protect investor equity in the project. Including 7,500 square feet of basement storage/laundry space, and the new addition described below, a total of 43,100 square feet is designated as residential. 5. Construction of a new 4400 square foot addition to the third and fourth floors of the hotel, joining the "V" shaped building into a triangle. This addition will house 8 of the 47 apartment units and will allow for a single roof over the entire hotel. This design innovation will solve complex energy and drainage problems, create an atrium/courtyard into which interior apartment units will look, and allow for natural lighting of the stained glass dome on the lower level. Developer/Contractor Funding Partners for Housing Solutions and the National Development Council (NDC), both 501(c)(3) non profit organizations, form the Development Team working to redevelop the Northern Hotel. The NDC is recognized nationally as one of the leaders in the development of quality affordable housing using Housing Tax Credits and other public funds. NDC presently owns and manages in excess of 500 units. Funding Partners has focused its efforts on the financing of development and redevelopment of affordable housing and has the necessary local contacts and resources to implement a successful project. The Development Team has obtained the services of Richard Beardmore of AE Design and Mark Thorbum of University Designers and Builders to prepare rehabilitation cost estimates and assist in the selection of a qualified General Contractor. These entities have significant experience in the design and construction management of both housing and historic renovation projects. Danter Company, a nationally recognized market research firm, is in the process of completing a market study affirming the market for the proposed housing units. Site Control Negotiations for the acquisition of the building have resulted in agreement on the terms of the sale. A purchase contract is currently under attorney review, with signature required by March 5, 1999. The site is properly zoned for the proposed project and all infrastructure is in place including street paving, curb and gutter, sidewalks, water, sewer, gas, electric, cable and telephone service. In addition, the developer has completed a study on the building's structural integrity and Phase I environmental mitigation measures are included in estimated redevelopment costs. Project Costs and Sources of Funds; Project hard costs are estimated at $5,971,362. Of that $1,011,315 is for the rehabilitation of the building facade and the public lobby space. Other costs are noted below. Overall Project Facade/Lobby A. Hard Costs 1. Construction $5,971,362 $1,011,315 B. Soft Costs 1. Municipal Development Fees $ 376,745 $ 53,842 2. Architecture & Engineering $ 320,493 $ 83,810 3. Contingency $ 631,142 $ 73,679 4. Other Expenses (construction interest; loan, legal and developer fees; environmental review; etc) $ 894,000 $ 101,131 5. Soft Costs Sub Total $2,222,380 $ 312,462 TOTAL $8,193,742 $1,323,777 Funding for the redevelopment is projected from a variety of sources including Historic Tax Credits and grants, Housing Tax Credits and grants, CDBG/HOME funds, Municipal grants and DDA tax increment financing. Successful garnering of Housing and Historic Tax Credit allocations will bring approximately $4.7 million in equity to the project. Applications for tax credit funds are in progress, being due to the state by April 2, 1999. Execution of the purchase contract is specifically contingent upon successfully raising $2.5 million from non -tax credit grant sources. Leveraging funds from most of these sources is dependent upon local support, so DDA and City of Fort Collins applications are being prepared first. (Fort Collins Finance Committee will be reviewing our request at its March meeting). Based on projected grant amounts from outside sources with known interest in the project, the combined total of local funding required is $1- $1.3 million. Known Source Amount 1. Colorado Historical Society $ 450,000 2. Colorado Division of Housing $ 450,000 3. Federal Home Loan Bank $ 250,000 $1,150,000 Permanent debt of approximately $2.1 million is projected, an amount which can reasonably be supported by commercial and residential rental income. Inclusion of funding decisions from the DDA and the City of Fort Collins will greatly enhance the projects ability to compete for an allocation of tax credits in the previously mentioned April 1999 application round. Insufficient local funding will require additional fund raising efforts and/or modifications in the proposed renovation plan. K ::. 0 47:. is 0 0 i