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HomeMy WebLinkAboutDowntown Development Authority - Minutes - 04/06/1995ddDAVNTOWN 0 DEVELOPMENT AUTHORITY ONE WEST CONTEMPORARY ART CENTER Telephone (303) 484-2020 201 SOUTH COLLEGE AVENUE, FORT COLLINS, CO 80524 Telefax (303) 484-2069 DOWNTOWN DEVELOPMENT AUTHORITY Regular Directors' Meeting MINUTES OF APRIL 6 1995 REGULAR MEETING The Board of Directors of the Downtown Development Authority met in regular session at 7:30 a.m., April 6, 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 Bixler-Szidon Carey Hewitt Chuck Wanner Staff: Chip Steiner, Consultant Anne Garrison Absent: Roger Gunlikson Jim Martell Ed Baldwin Others present: Dr. Patrick McKee, John Arnolfo, Carol Rates, Nancy Hansford, Barb Breen. CALL TO ORDER Steve Slezak called the meeting to order. He then corrected the March 2, minutes ae follows: The vote on Mr Wanner's amendment, regarding Opera Gallerie's operating hours should be corrected to read 5 to 1, and the name of Max Werner, a first floor retail tenant, should be changed to Mark Wernisont. Steve Slezak then called for a motion to approve the minutes as corrected. Rick Goodale so moved, Carey Hewitt seconded and the motion carried unanimously. ADMIMISTRATIVE Introduction of Anne Garrison as the new Administrative MANAGER Manager, with a request for approval of her contract which CONTRACT includes the following changes: • Probationary period to be ninety (90) days. • Reduction from sixty (60) to thirty (30) days termination notice. • Re -written job description, indicating a raised expectation in responsibility to be assumed. In addition, legal counsel recommended the following items, not yet added to the contract: E DDA MINUTES a During probationary period, separation can occur with PAGE 2 no notification, no additional compensation, and without cause. e In the job description, it be noted this is a full time position. Mr. Wanner moved to approve the contract with the specified amendments, Mr. Goodale seconded and the motion was carried unanimously. OPERA At the last board meeting, a resolution was passed with GALLERIA regard to Opera Galleria's operating hours. Legal counsel suggested a formal resolution be passed. This document is included in the packets with suggested modifications in bold print. Mr. Goodale moved for approval of the resolution, seconded by Mr. Wanner and the motion carried unanimously. REMINGTON Mr. Steiner presented a proposal from Dr. Patrick McKee, COURT requesting DDA participation for 24 - 36 residential units at the northwest corner of Remington and Magnolia. A 24 unit investment is estimated at $750,000, and the DDA is being asked to consider a contribution of $13,300 to cover street oversizing fees, asphalt overlays, landscaping and sprinkler system. An elevation and site map suggest this project would provide a high quality, much desired, residential addition to the downtown area. Mr. Steiner reported a balance of $40,000 in the DDA's capital improvement fund. There are no further monies forthcoming, since the deadline for possible CDBG assistance was inadvertently overlooked. The Board then recognized Dr. McKee and a question and answer period ensued. The following suggestions were made by the Board: e Approach Frank Bruno to have street oversizing fees waived. e Ensure that landscaping is not jeopardized if overlay is more than anticipated. e Consider a partial funding with additional funds to be contemplated if needed. s The Board advised it may request a line by line account of expenditures. Dr. McKee affirmed that he would be ongoing with the project with or without the participation of the DDA., and added that the land cost is high because the property is zoned commercial. He feels, however, that the project will enhance a corner which is currently blighted. Mr. Goodale indicated he would support a motion to provide funds for asphalt, landscaping and sprinkler system. He recommended Dr. McKee request a waiver of oversizing fees, and Mr. Steiner offered to assist in any needed research. Me. Brayton moved to grant $6,500, and if City will not waive fees, Dr. McKee should return to the Board for further consideration. Carey Hewitt seconded and the motion was carried unanimously. ONE WEST Carol Kates, acting as spokesperson for One West, requested FACADE $6,000 in DDA participation which it would match. A total of $12,000 is needed to complete the project which comprises stabilizing the building to protect it from additional structural and interior damage. Financial assistance is DDA MINUTES crucial to the long term welfare of the historic old Poet PAGE 3 Office. Their Board has committed $2,600 in matching funds, they have received $2,500 from an outside donor, and four major fund raisers are planned. It is confident it can raise the balance. Any excess funds would be used to address the heating system. The timeframe for the completion of the work is September. Ms. Bixler Szidon moved that the board allow One West $6,000 as a match if it successfully raises $6,000. This was seconded by Carey Hewitt and the motion carried unanimously. OTHER BUSINESS The Board recognized John Arnolfo from the Silver Grill who requested DDA participation in facade improvements for his restaurant. Costs are estimated at $25,000 to remove paint, add new awnings and rebuild door and transom. While retaining the integrity of the two buildings located at 216/218 and 212/214 Walnut Street, he would tie them together with a uniform paint selection. He circulated an approved $5,000 grant application, which had been submitted to the City with a timeframe of April - October. He also shared his plans to open an Expresso/ice Cream store at Harmony and Lemay this year. The Board had previously responded favorably to this project and now offered the following recommendations and suggestions: • Research available assistance offered through tax credits and Local Development Corporation. • Return to Board with the specific amount needed having exhausted these other avenues. ADJOURN There being no further business, the meeting was adjourned. Ed Baldwin, Secretary ddaDI: � DEVELOPMENT AUTHORITY ONE WEST CONTEMPORARY ART CENTER Telephone (303) 484-2020 201 SOUTH COLLEGE AVENUE, FORT COLLINS, CO 80524 Telefax (303) 484-2069 TO: DDA Board of D� tar FROM: Chip Steiner DATE: May 1, 1995 RE: Remington Place Street oversizing Fees Last month the Board of Directors favorably considered a request from Patrick McKee to provide DDA financial participation for the cost of certain public improvements associated with the development of a downtown residential project. A part of the request from Dr. McKee was for the payment by the DDA of over $7,000 in street oversizing fees. The Board suggested Dr. McKee, with the assistance of the DDA, attempt to get this fee waived by the City. Following discussions with the appropriate City officials, it has become clear that waiver of any City fees is limited to base industry development which creates primary jobs. Market rate residential development does not qualify for relief of city fees regardless of its location. Dr. McKee has asked the DDA to reconsider payment of the street oversizing fee and has added a request for DDA payment of the parkland fee (see attached letter). Street oversizing = $7,008.00 Parkland = 9,384.00 Total: $16,392.00 At the conclusion of last month's Board meeting, the Authority had made two financial commitments against the $40,000 it had available. Beginning Balance $40,000.00 Commitment to Remington Place (6,500.00) Commitment to One West (6,000.00) Balance available $27,500.00 In addition, the DDA has expressed support for participation in the Silver Grill facade although no dollar commitments have been made. The Board will also be considering another request for financial participation later in this meeting from Bourbon Street Restaurant. Page 2. Remington Place Remington Place is being required to pay over $16,000 in fees for which it gets no direct benefit. on the other hand, the owner has clearly indicated that he would proceed with the project regardless of DDA participation which suggests that, barring surprises, the project pencils out. The DDA suggested that should the City be unable to waive fees, Dr. McKee should return to the Authority. Additional participation is being recommended. However, recognizing that resources are limited, the Board may want to limit the extent of that additional participation. April 27, 1995 Mr. Stephen Slezak, chairman Downtown Development Authority 201 S. College Fort Collins, c0 Dear Mr. Slezak: Recently I made application to the Downtown Development Authority for a grant to assist in development of two six -writ apartment buildings at the corner of Remington and Magnolia. The authority suggested that, together with Mr. Steiner, we approach the city to request waiver of the street oversize fee. The city has advised us that the fee is waived only for base irdustry projects that result in primary job creation, and that an attempt to get a waiver for market rate residential writs would require action by the City Council. In accordance with the Authority's suggestion, I am, in light of the city's position, respectfully resubmitting my request for a grant of $7008.00 (seven thousand and eight dollars) to offset the street oversize fee. I also respectfully request a grant to cover payment of the Parkland fee for this project, which is $9384.00 (nine thousand three hxmdred eighty fair dollars). The total request, then, is: Street Oversize Fee $ 7008.00 Parkland Fee $ 9384.00 Total: $ 16,392.00 Quality residential units of the type we are constructing are very desirable for the develclanent of the downtown area; yet lard and other development costs are formidable. For this reason I hope the authority will look favorably on and support this request. Patrick McKee 900 Gregory 482-0383 ddoDOWNTOWN � DEVELOPMENT AUTHORITY ONE WEST CONTEMPORARY ART CENTER Telephone (303) 484-2020 201 SOUTH COLLEGE AVENUE, FORT COLLINS, CO 80524 Telefax (303) 484-2069 TO: DDA Board of Director FROM: Chip Steiner /1 DATE: May 1, 1995 RE: Linden's/Bourbon Street Proposal The DDA has been approached to participate in both facade and sidewalk improvements at 214 Linden Street (Linden's/Bourbon Street Bar and Restaurant). A rendering is attached. The requested DDA participation would involve an awning, wrought iron railing to delineate a patio dining area, and wrought iron window boxes. The work would be done in conjunction with the Linden Street improvements which broke ground earlier this week and is now under way. Estimated cost breakdown for the proposed work is: Awning $1,750 - 2,000 Wrought Iron Railing 3,200 Window Boxes 2,160 Total $7,110 - 7,360 On an earlier agenda item the Board considered additional financial participation in the Remington Place project. Depending on the Board's decision on that item the Authority could have as little as $11,100 available. A complicating factor in this request is that the applicant does not own the properties upon which the improvements will be placed. This is not a problem for the wrought iron railing which will be placed in the public right-of-way. But the window boxes and awning constitute facade improvements for which the DDA must take an ownership interest. Without the consent and signature of the building owner (who is on a round -the -world bicycle tour) DDA financial participation is not feasible for these two items. Nevertheless, the proposed improvements will make a significant contribution to the renovated 200 block of Linden Street and some level of DDA involvement is strongly recommended. No Text D&NTOWN � DEVELOPMENT AUTHORITY ONE WEST CONTEMPORARY ART CENTER Telephone (303) 484-2020 201 SOUTH COLLEGE AVENUE, FORT COLLINS, CO 80524 Telefax (303) 484-2069 TO: DDA Board of Directors FROM: Chip Steiner DATE: May 1, 1995 RE: Larimer County Enterprise Zone Lew Wymisner, Larimer County Enterprise Zone Administrator, is suggesting, via the attached memorandum, that the Downtown Development Authority take a more active role in utilizing the benefits of the enterprise zone as they apply to DDA objectives for the central business district. The Authority and the EZ have a standing agreement permitting donations to be made to projects qualifying through the policies of the Downtown Plan and Plan of Development. Mr. Wymisner believes the Authority is in a good position to evaluate projects which meet the objectives of the Downtown Plan. Therefore, it makes sense to have projects seeking EZ tax benefits be submitted through the DDA, and if qualifying, the Authority would simply process the paperwork (as it would do in any case) according to the existing DDA-EZ agreement. Essentially, this new process assists the EZ administrator in determining what projects qualify under the Downtown Plan and Plan of Development and gives more responsibility to the DDA. A good example of how this process might work is the current effort on the part of One West Art Center to raise funds for its facade rehabilitation project. Under the existing system, One West would have to strike its own agreement with the EZ to process donations and thereby get the advantage of EZ tax credits. This requires the EZ administrator to make a determination that One West's objectives are consistent with EZ objectives. Under the proposed approach, One West would work through the DDA with its proposal. The DDA would help determine if the project meets with the objectives of the Downtown Plan and the Plan of Development. If so, the DDA would so inform the EZ administrator and all donations to the One West project would be made under the auspices of the existing DDA-EZ agreement. A Comminnenr To Progress COLORADO MEMO Employment & Training Services Joni Friedman, Director 3842 S. Mason (303) 223.2470 FAX (303) 223-7456 TO: Chip Steiner, Consultant to the Fort Collins Downtown Development Authority (DDA) FROM: 0 Lew Wymisner, Larimer County Enterprise Zone Administrator RE: Enterprise Zone Projects and the DDA DATE: April 27, 1995 Pursuant to previous conversations between the two of us, I would like to propose the following to the DDA Board of Directors: A goal of the DDA is, "sustaining and improving the economic health and welfare of the Fort Collins central business district;' as stipulated in the City of Fort Collins Downtown Plan. This goal is consistent with the goals of the Larimer County Enterprise Zone program. As such, the Enterprise Zone Administrator can support projects and programs through the DDA by providing a state tax credit incentive to contributors for such projects and programs. I believe that the DDA is in a position to identify projects and programs that fit the framework of the stated goals. I am requesting the DDA's assistance by utilizing the Enterprise Zone agreement already in place with the DDA when such projects are to be implemented in the Fort Collins central business district. While this procedure would commit the DDA to some additional paperwork, the DDA's administrative office is already familiar with the procedures required to facilitate this proposal. This proposal would, I believe, provide an active, positive, cooperative role for the DDA regarding the Enterprise Zone contribution tax credits benefiting projects in the Fort Collins central business district. I will attend the DDA Board meeting on May 4 to formalize this proposal. Thank you for your consideration in this matter. BOARD OF COUNTY COMMISSIONERS Courtlyn W. Hotchkiss Janet Duvall Jim Disney District I District 11 District III D&NTOWN DEVELOPMENT AUTHORITY ONE WEST CONTEMPORARY ART CENTER Telephone (303) 484-2020 201 SOUTH COLLEGE AVENUE, FORT COLLINS, CO 80524 Telefax (303) 484-2069 TO: DDA Board of Direct FROM: Chip Steiner DATE: May 1, 1995 RE: Assignment of 185 North College Avenue Lease The DDA is being asked to approve the assignation of the Lease and Option Agreement for 185 North College from Jim Sofias, the current leaseholder, to Daedalus ventures Limited Liability Company. Copies of the assignment and the Articles of Organization are attached to this memorandum. Members of the LLC are Zachary G. Wilson and Serafim (Jim) Sofias. For the Board's information, the leaseholder has provided the Authority with proof of insurance and has recently come current on rent for the last two months. Legal counsel will advise the board further on the issue. DAVID H. JOHNSON MICHAEL 0. LIGGETT THOMAS H. MOORE ERIC A. PETERSON DAVID S. POWER KELSEY J. SMITH GAVE WILLIAMS ZACHARY 0. WILSON MOORE, SMITH & WILLIAMS, P.C. ATTORNEYS AT LAW 425 WEST MULBERRY STREET, SUITE 112 FORT COLLINS, COLORADO 40521.2896 April 25, 1995 Downtown Development Authority One West Art Center 201 South College Avenue Fort Collins, Colorado 80524 Re: Lease Option Assignment Sofias to Daedalus Ventures LLC Ladies and Gentlemen: TELEPHONE (303)092.9770 FACSIMILE (303) 492.0339 The Fort Collins Downtown Development Authority is the lessor under a Lease and Option Agreement of September 6, 1993 for the property located at 185 North College Avenue. Serafim ("Jim") Sofias is the lessee under the Agreement. For business planning purposes, Mr. Sofias desires to assign the Lease and Option Agreement to a Colorado limited liability company to be formed. I have provided for your information a copy of the proposed Articles of Organization. I will also be a member in the limited liability company. Prior to formalizing my business association with Mr. Sofias, I wanted to make sure that the Downtown Development Authority would consent to an assignment of the Lease and Option Agreement to the limited liability company. The written consent of the lessor is required under the Lease and Option Agreement, pursuant to paragraph 10. Also, I wanted to make sure that Mr. Sofias was not considered in default of the Agreement by the lessor. By the time the DDA is required to formally approve this consent, Mr. Sofias should be current in his obligations. I have provided for your review and approval a copy of a Lease and Option Agreement Assignment. If this meets with your attorney's approval, please contact me. I intend to file the Articles of Organization for the LLC within the next several days, and I would prefer having the LLC formally in existence prior to the execution of the Assignment. If you have any questions, please have your legal counsel contact me. Thank you for your cooperation. Sincerely, Zachary G. Wilson Enclosures sld M 11 ARTICLES OF The undersigned natural person of the age of 18 years or more, acting as the organizer of a limited liability company under the Colorado Limited Liability Company Act, adopts the following Articles of Organization for such limited liability company. FIRST: The name of the limited liability company is: Daedalus Ventures LLC SECOND: The address of the principal place of business is: 425 West Mulberry, Suite 112 Fort Collins, Colorado 80521 THIRD: The limited liability company is organized for any legal and lawful purpose pursuant to the Colorado Limited Liability Company Act. FOURTH: The address of the initial registered office of the limited liability company is: 425 West Mulberry, Suite 112 Fort Collins, Colorado 80521 and the name of its initial registered agent at such address is Zachary G. Wilson. FIFTH: Management of the limited liability company is vested in the members. SIXTH: The name and business address of the persons who shall be the initial members are: Zachary G. Wilson 425 West Mulberry, Suite 112 Fort Collins, Colorado 80521 Serafim D. Sofias 181 North College Fort Collins, Colorado 80524 SEVENTH: The name and address of the organizer is: Zachary G. Wilson 425 West Mulberry, Suite 112 Fort Collins, Colorado 80521 EIGHTH: Upon the death, retirement, resignation, expulsion, bankruptcy or dissolution of a member or the occurrence of any other event which terminates the membership of a member(s) in the Limited Liability Company, the d t • • remaining member(s) may unanimously agree within ninety (90) days to continue the business of Daedalus Ventures LLC. Zachary G. Wilson STATE OF COLORADO ) ss. COUNTY OF LARIMER ) The foregoing Articles of Organization was subscribed and sworn to before me this day of April, 1995 by Zachary G. Wilson. WITNESS my hand and official seal. My commission expires: Notary Public - 2 - ASSIGNMENT OF LEASE AND OPTION AGREEMENT THIS ASSIGNMENT is made this day of , 1995, by and between Serafim D. Sofias, ("Assignor") and Daedalus Ventures LLC ("Assignee"). RECITALS 1. On or about September 6, 1993, Assignor entered into a Lease and Option Agreement with the Fort Collins Downtown Development Authority, which Lease and Option Agreement is attached hereto as Exhibit "A". 2. Assignor desires to assign, and Assignee desires to assume, the rights, duties, and liabilities of the Assignor under said Lease and Option Agreement. NOW, THEREFORE, for valuable consideration, the receipt of which is hereby acknowledged by Assignor, Assignor assigns said Lease and Option Agreement to Assignee effective as of the date hereof, for the balance of the lease term through September 5, 1996. Assignee shall also have the right to exercise the option to purchase the subject property as set forth in the Lease and Option Agreement. Assignee shall assume all rights and duties required of Assignor under the Lease and Option Agreement, including all payments required thereby and shall comply with all the terms and conditions of the Lease and Option Agreement. Assignee shall indemnify and hold harmless Assignor in the event Assignor is held responsible for any payments or defaults after the date hereof. ASSIGNOR: By: Serafim D. Sofias ASSIGNEE: DAEDALUS VENTURES LLC CONSENT Lessor hereby consents to this assignment. This consent shall not release Lessee (Assignor) from any obligation under the Lease and Option Agreement, and lessor specifically reserves all rights and remedies it may have against lessee. FORT COLLINS DOWNTOWN DEVELOPMENT AUTHORITY By: ddoDANTOWN DEVELOPMENT AUTHORITY ONE WEST CONTEMPORARY ART CENTER Telephone (303) 484-2020 201 SOUTH COLLEGE AVENUE, FORT COLLINS, CO 80524 Telefax (303) 484-2069 TO: DDA Board of Di r �t s FROM: Chip Steiner C DATE: May 1, 1995 RE: Other Business 1. Retreat. Please check your calendars in advance of the May 4, 1995 Board meeting to abet the selection of a retreat date. Suggestions are : Thursday, May 25--lunch through 4/5/6 p.m. Friday, May 26-- It " Saturday, May 27--8 a.m. through lunch. Thursday, June 1--Either a.m. or p.m. Friday, June 2--Lunch through 4/5/6 p.m. Saturday, June 3--8 a.m. through lunch.