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HomeMy WebLinkAboutDowntown Development Authority - Minutes - 05/04/1995ddoDANTOWN � DEVELOPMENT AUTHORITY ONE WEST CONTEMPORARY ART CENTER Telephone (303) 484-2020 201 SOUTH COLLEGE AVENUE, FORT COLLINS, CO 80524 Telefox (303) 484-2069 DOWNTOWN DEVELOPMENT AUTHORITY Regular Directors' Meeting The Board of Directors of the Downtown Development Authority met in regular session at 7:30 a.m., May 4, 1995 in the conference room at 201 South College Avenue, One West Contemporary Art Center. PRESENT There were present: Stephen Slezak, Chair presiding Rick Goodale Mary Brayton Bonnie Bixlar-Szidon Carey Hewitt Chuck Wenner Ed Baldwin Staff: Chip Stainer, Consultant Anne Garrison Lucia Liley, Legal Counsel Absent: Roger Gunlikson Jim Martell Others present: Dr. Patrick McKee, Lewis Wymisner, Maggie Kanze, Tanya Spasev, Jim Sofias, Zachary Wilson, Key Bank Representative. CALL TO ORDER Steve Slezak brought the meeting to order and called for a motion to approve the minutes of April 6, 1995. Mary Brayton so moved, Ed Baldwin seconded and the minutes were unanimously approved as written. RMCINGTOR PLACE Chip Steiner briefly recapped the recommendations made to Dr. McKee at the April meeting. City officials advised that waivers for street oversizing fees are limited to base industry development, which in turn creates primary jobs. Residential developments, therefore, do not qualify. Dr. McKee returned to the Board, as requested, to resubmit his application in the amount of $16,392.00. This figure comprises $7,008 for street oversizing and $9,384.00 for parkland fees. Compounding the Board's desire to participate is that only $27,000 is available for capital improvements. At this juncture, Rick Goodals suggested a 50 - 50 partnership on the street oversizinq fees. Lucia Liley cautioned that the Board cannot participate in the payment of 'just fees'. Counsel stressed that care should be exercised in committing DDA MINUTES funds unless used solely in the public right of way. Another PAGE 2 concern was whether parkland fees benefited the owner. Bonnie Bixler-Szidon then made a motion to participate in the funding of this project in the amount of $6,500, as previously committed by the board in April. Mr. Baldwin seconded and the motion to reconfirm the commitment of $6,500 was carried unanimously. The Board suggested that if Dr. McKee was ongoing with this development, i.e. if he intends to build additional units, he can return at a later date for additional funding. He affirmed that at this time he was permitting for only two buildings. BOURBON STREET Maggie Kunze, representing Red Ass Ale sought DDA SIDEWALK/FACADE participation in funding improvements which would entail a new awning, window boxes on one building, and wrought iron railings for a patio totaling $7,360.00. Of concern, is the fact that the applicant owns only one of the buildings in question. Some of the thoughts which surfaced were: a Small projects such as this should be handled by the applicant through LDC. s The need to remain consistent with the type of project in which the DDA generally participates. As a result, discussions centered around the wrought iron railing only. Me. Szidon made a motion to participate in the amount of $1,600,00 and Mr. Baldwin seconded the motion. It was requested that Mr. Steiner write a letter of support for the project to LDC. The Board, however, was not in consensus. The following questions were raised: s Should approval be contingent on LPC's approval of the project? s Has the DDA committed more than 50% for similar projects in the past? Following some clarification on the part of Lucia Liley, Ms. Szidon withdrew her motion. She restated it, proposing $1,600 for the wrought iron rail providing the other proposed improvements are made. This was seconded by Mr. Hewitt. The Board still appeared divided, as Mr. Goodale proposed a maximum participation of $1,600 for the wrought iron railing, provided the railing is completed. At this juncture a vote was taken resulting in 5 - 2 in favor of the motion. Mr. Goodale then moved that a letter be addressed to the LPC encouraging its approval of the project. This was seconded by Mr. Baldwin. Ms. Brayton inquired if the letter could indicate our support as opposed to our approval of said project. It was also thought a similar letter should be sent to the LDC. Mr. Goodale amended his proposal to include the LDC and Mr. Baldwin seconded the motion. The motion was now clarified to state that the Board would write separate letters, one to LPC encouraging design approval, and a second to LDC encouraging funding support. This motion carried unanimously. ENTERPRISE ZONE Representing the Enterprise Zone, Lew Wymisner addressed the Board requesting that Directors take a more active role in evaluating projects seeking tax credits which meet the objectives of the Downtown Plan and Plan of Development. The DDA is in a unique position to provide valuable input in these cases, and determine which would qualify. The Board DDA MINUTES would then process the paperwork, after which the Enterprise PAGE 3 Zone would assist the applicant in availing themselves of the benefits. There were a few questions, but essentially the DDA will simply be expanding a role it already fills. 183 N. COLLEGE The Board of Directors was asked to approve the Assignation of the Lease and Option Agreement for 185 North College Avenue, from Serafim (Jim) Sofias, current leaseholder to Daedalus Ventures Limited Liability Company. Lucia Liley having reviewed the documents stated that there was no legal reason for the Board not to give approval, since the LLC was assuming all obligations and that Jim Sofias was also liable. In essence, any risk to the DDA is significantly reduced. Zachary Wilson, Attorney for Mr. Sofias and a bank representative (not named) were present to answer questions for the Board's clarification. Subsequently, Mr. Hewitt moved to approve the assignation, Mr. Baldwin seconded and it was carried unanimously. OTHER BUSINESS a DDA Retreat - a tentative date was set for Wednesday May 24, 1995 between the hours of 12:00 noon and 4 - 5 p.m. The Edwards House will be hosting the event, and confirmation of this date will be obtained in the next day or so. • Monthly Financial Report - Inasmuch as the City is in a position to open, close and pay on blanket purchase orders In order to pay for expenses incurred by the DDA, a monthly report will be prepared by Rita Welch in Accounting, who has requested the Board review and sign its acceptance of the report, and return it for her records. A motion was made by Mr. Hewitt, seconded by Ms. Brayton authorizing the Chair so to do. ADJOURN There being no further business, the meeting was adjourned. Ed Baldwin, Secretary DAVNTOWN 0 DEVELOPMENT ddoAUTHORITY ONE WEST CONTEMPORARY ART CENTER Telephone (303) 484-2020 201 SOUTH COLLEGE AVENUE, FORT COLLINS, CO 80524 Telefcx (303) 484-2069 TO: DDA Board of Directors FROM: Chip Steiner n DATE: July 11, 1995 �P RE: Election of Officers The Board must select and vote for new officers for the 1995-96 term. Positions are: Chair; Vice -Chair; Secretary; Treasurer. These positions are now held by: Steve Slezak--Chair; Bonnie Szidon--Vice Chair; Secretary --Ed Baldwin; Treasurer --Carey Hewitt. Term of office is for one year. Members can hold an office for two or more years consecutively. dOD(%VNTOWN DEVELOPMENT AUTHORITY ONE WEST CONTEMPORARY ART CENTER Telephone (303) 484-2020 201 SOUTH COLLEGE AVENUE, FORT COWNS, CO 80524 Telefox (303) 484-2069 TO: DDA Board of Direc � S, FROM: Chip Steiner DATE: July 10, 1995 RE: Old Senior Center The DDA has been asked to participate in the facade improvements being proposed for Advanced Digital Imaging's new headquarters located in the Old Senior Center. Attached is a letter outlining the request and some elevations illustrating the proposed improvements. The Board may recall that it took a firm stand in support of ADI 's acquisition of the Old Senior Center. That support may have been the determining factor in Council's decision since City staff had recommended another buyer for the property. According to documents submitted by ADI, the proposed renovation work will cost about $250,000. This, coupled with the acquisition price, brings the value of the property to over $400,000. At its last meeting, the Board provided $1,600 to the patio expansion for Bourbon Street Restaurant. This leaves a balance of in the Authority's capital projects line item of $25,900. Because of the Authority's limited resources it has been fairly restrictive in providing project funding. At the retreat held last month, the Board discussed various methods of qualifying projects and, although there were no decisions reached, there was clear consensus that some projects warranted higher priority than others and that some method of ranking them would be useful. While no ranking system has been devised, the ADI proposal does help to meet one of the priority projects discussed at the retreat- -the re -invigoration of East Mountain Avenue. This objective ranked second to the improvement of the Northern Hotel. Because the corner of Mountain and Remington is an important and visible downtown location and because the DDA has placed the redevelopment of East Mountain as a high priority, the recommendation is to provide some funding to this project. However, because of the DDA's limited resources, such funding should be consistent with recent support extended by the DDA to important projects such as Remington Place. ' June 29, 1995 To: Downtown Development Authority AdVZIICetI From: Jim Stouffer Digital President Imaging, Inc.Advanced Digital Imaging, Inc. Subject: Renovation of Former Senior Center Your Film Attached please find copies of architect's renderings to PhOtOTl CD for the facade of the new home of Advanced Digital Imaging, Inc. to be known as the Colorado Center for bi Z4 HOu15� Creative Imaging. Construction has begun on the interior of the building to house ADI's expansion on the east side. The east elevation shows ADI's entrance at 101 Remington Street. The north elevation shows where one or two retail spaces are planned. In addition, a planter will extend along Mountain Avenue to hide the parking lot on the west side of the building. Evergreen shrubbery and perennials will be planted to provide year 'round landscaping. Materials include cloth awnings and Drive -It exterior finishing. Colors are to be determined. A request is hereby made of the DDA for facade renovation funds in the amount of $64,000.00 for improvements to the exterior of our building. Thank you for your consideration. I will look forward to hearing from you. 112 East Olive Street • Fon Collins. Colorado 80524 • 14W0 88&17OTO (3686) • Phone 303-i"3351 • Fax 303-482-0334 0 n _, I J •=OMNI �_ om� DdDuNrowN • DEVELOPMENT AUTHORITY ONE WEST CONTEMPORARY ART CENTER Telephone (303) 484-2020 201 SOUTH COLLEGE AVENUE, FORT COWNS, CO 80524 Telefox (303) 484-2069 TO: DDA Board of Dire ors FROM: Chip Steiner , DATE: July 11, 1995 RE: Retreat Recommendation At its retreat last month, the Board listed a number of projects it felt were important to pursue. It asked that a recommendation to City Council be put into the form of a resolution. Attached is a draft for Board consideration. n RESOLUTION 95-3 OF THE FORT COLLINS, COLORADO DOWNTOWN DEVELOPMENT AUTHORITY RECOMMENDING TO CITY COUNCIL THE IMPORTANCE OF CERTAIN PROJECTS TO THE CONTINUED HEALTH AND WELLBEING OF THE CENTRAL BUSINESS DISTRICT WHEREAS, the Fort Collins, Colorado Downtown Development Authority has been duly organized in accordance with the Colorado Revised Statutes 31-25-804, 1973 as amended; and, WHEREAS, the Board of Directors met in retreat May 24, 1995 and found that the renovation of key downtown properties to be vital to the continued health and wellbeing of the central business district; and, WHEREAS, the Board of Directors recognized the unique abilities of the City of Fort Collins to initiate the renovation of key downtown properties. NOW, THEREFORE, BE IT RESOLVED, by the Board of Directors of the Fort Collins Downtown Development Authority, that it hereby recommends to the Council of the City of Fort Collins that it utilize those powers at its disposal to effect the renovation and redevelopment of those properties vital to the continued success of the central business district. Passed and adopted at a meeting of the Board of Directors of the Fort Collins Downtown Development Authority this 13th day of July, 1995 Chair ATTEST: Secretary DANTOWN DEVELOPMENT ddoAUTHORITY ONE WEST CONTEMPORARY ART CENTER Telephone (303) 484-2020 201 SOUTH COLLEGE AVENUE, FORT COWNS, CO 80524 Telefox (303) 484-2069 TO: DDA Board of D' ctors FROM: Chip Steiner DATE: July 11, 1995 RE: Title Insurance Policy on Facade Agreements Last month the Board was provided with a memorandum regarding title insurance for facade improvements. Subsequent to the mailing of that memo, it became apparent that additional legal input should be provided to boardmembers prior to any decision being made. Attached to this memorandum is a two -page legal review provided by Lucia Liley and a copy of the original faxed memo. The Board is being asked to consider as a policy matter whether title insurance is necessary for projects of less than $10,000. �1 TO: DDA Board of Directors FROM: Lucia A. DATE: July 10, 19 5 SUBJECT: Title Insurance Policy Requirements for Facade Agreements Chip has asked that I provide the Board with my analysis of removing the requirement for a title insurance policy on small facade projects. I agree that the DDA's current practice of requiring such a policy is burdensome when only a relatively small cost for facade improvements is being funded by the DDA. The reason for requiring the policy is two -fold: To help ensure that no liens will be filed against the building (and facade); and if a lien is filed and foreclosed on, there is a source of funds to repay the DDA the amount it paid for acquisition of its ownership interest in the facade. From a practical standpoint, the DDA's real goal in the facade program is to end up with new or renovated facades. This is accomplished regardless of whether or not a lien may be filed or the DDA continues to have an ownership interest. However, the reason we make the effort to acquire an ownership interest in the facade is to ensure that public funds are used for public improvements. A lien foreclosure could remove the DDA's ability to enforce the covenants regarding redesign or removal of the facade. In addition, if the DDA ownership interest were lost, a question could potentially be raised that the public purpose of the funding no longer existed, i.e. that the DDA did not get the benefit of its bargain or even that the public monies were improperly expended since the improvement which was funded is no longer a public improvement. Although these and other issues could possibly be raised, in my opinion, it would be unlikely that they would pose a significant legal risk to the DDA so long as the transaction is lawful at the time of funding. A later action outside the control of the DDA which may have priority over the DDA's ownership should not serve to make the initial DDA transaction unlawful. Further, so long as the facade is not removed or substantially altered, one could argue that the public purpose is still met. Since all of the facades are newly constructed and a majority of them have other restrictions prohibiting substantial alterations without certain approvals, it seems likely that the public purpose would continue to be fulfilled, at least for a reasonable period of time necessary to amortize the DDA's contribution. In addition, there is a practical reason why the lien issue should not pose a significant risk. In the event a mechanic's lien were filed, it would almost certainly be on the entire building and not just the facade. Unless the owner wanted to lose his or her entire interest in the building, the lien would have to be paid. It would be rare for an owner (and lender) to lose a building for failure to pay a mechanic's lien. The steps I recommend if the DDA decides to eliminate the title policy requirement for projects of $10,000 or less are as follows: 1. Get an ownership and encumbrance report to substantiate who has a security interest in the property (e.g. a lender). All of these parties will continue to sign off on the facade agreement and the grant of facade ownership. 2. Require the owner to submit a list of all contractors and subcontractors on the project plus verification that payment has been made in full and/or lien waivers signed. 3. Add language to the facade agreement that, in the event the DDA's ownership interest is lost through the foreclosure of a mechanic's lien, the owner is liable to the DDA for repayment of the funds contributed. 2 d d0D0%NTOWN 0 DEVELOPMENT AUTHORITY ONE WEST CONTEMPORARY ART CENTER Telephone (303) 484-2020 201 SOUTH COLLEGE AVENUE, FORT COLONS, CO 80524 Telefcx (303) 484-2069 FAX MEMORANDUM TO: DDA Board of Dire rs. FROM: Chip Steiner A�p DATE: June 21, 1995 RE: Title Insurance Policy Requirements Normally, when the DDA buys a facade through its facade improvement program, it takes title to the building front and therefore requires that title insurance be provided by the building owner. Because the amount of funding provided by the DDA to some projects is very small I am suggesting that the title insurance policy requirement be set aside. The expense of obtaining a very difficult legal description (a description of the facade of a building in isolation from the rest of the structure) and buying the insurance seems out of proportion to the level of DDA participation. When the amount of DDA financial participation is directly related to the actual facade improvement costs and when there is substantial financial risk (e.g the Linden Hotel) title insurance is justifiable. When there is not direct linkage between DDA funding and the facade improvement costs and when DDA funding is below a certain level--$10,000?--the title insurance requirements seems like overkill. The DDA will be calling in the next few days to get the Board's reaction to this.