HomeMy WebLinkAboutEconomic Advisory Commission - Minutes - 02/20/20131
Minutes
City of Fort Collins
Economic Advisory Commission
Regular Meeting
300 LaPorte Ave
City Hall
February 20, 2013
11:00 a.m. – 1:30 p.m.
For Reference:
Blue Hovatter, Chair 493-3673
Council Liaison Wade Troxell
Josh Birks, Staff Liaison 416-6324
Wendy Bricher, Minutes 221-6506
Commission members present: Commission members absent:
Michael Kulisheck Jim Clark
Christophe Febvre Channing Arndt
Daniel Lenskold Anne Hutchison
Blue Hovatter
Sam Solt
Glen Colton
Guests:
Wade Troxell, Councilmember
Mike Pruznick, Citizen
Dale Adamy, Citizen
Eric Sutherland, Citizen
Staff Present:
Wendy Bricher, Minutes
Josh Birks, Economic Health Director
SeonAh Kendall, Economic Health Analyst
Jessica Ping-Small, Sales Tax Manager
Agenda Item 1: Meeting called to order
Meeting called to order at 11:03 a.m.
Agenda Item 2: Approval of Minutes
Unanimous approval of minutes dated 1/16/2013
Agenda Item 3: Public Comment
Mike Pruznick presented information and his views to the EAC regarding fracking, Capital Expansion
Fees, talent management, business assistance, and Angel investors. In summary, Mr. Pruznick believes
that the citizens of Fort Collins care more about quality of life and not wealth (fracking); the new Capital
Expansion Fee rates do not support our sustainability goals - it increases at a higher proportionality on
smaller homes vs. larger homes; businesses are here to meet our needs; businesses should “earn” there
Financial Services
300 LaPorte Ave
PO Box 580
Fort Collins, CO 80522
970.221.6505
970.224.6107 - fax
fcgov.com
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assistance packages by giving back to the community; and he is concerned that Angel investors are
threatened by crowd funding.
Eric Sutherland spoke to the EAC regarding the Urban Renewal Authority (URA). He believes it is
insolvent and is carrying more obligations than can be repaid by Tax Increment collections (18 M) He
also commented that the URA is bound by state law, and not by charter. Glen Colton asked Mr.
Sutherland if he had documentation showing the 18M deficit. Mr. Sutherland answered that he did, but
did not have it readily available for the EAC to review. Christophe Febvre commented that historically
the EAC has been briefed on the URA and determined their role was to assess the economic value (cost
benefit) and not the legal issues of the URA. A compilation of past URA minutes, presentations, and
recommendations will be sent to the EAC, primarily as an update for new members.
Agenda Item 4: Follow-up Discussion Regarding Previous Meetings
The Economic Advisory Commission further discussed Housing Authority Fee Waivers at their February
meeting and determined that Option D supports the long-term goals of keeping Affordable Housing
options available to those who need it, meets our sustainability needs, and has the flexibility for the City
to support the needs of our low-income population moving forward.
After thorough consideration and discussion, the EAC developed the following recommendation to the
Fort Collins City Council.
Christophe Febvre moved and Sam Solt seconded:
The Economic Advisory Commission (EAC) supports the staff recommendation for Option D Make
the fee waivers optional, according to established criteria in amending the current ordinance for
Fort Collins Housing Authority Fee Waivers and recommends Council approve it on first reading.
Motion passed 6 – 0
Agenda Item 5: Member Updates/Future Agenda Items
Josh Birks provided an update regarding Foothills Mall. He stated that both parties are in discussions and
he is optimistic that an agreement will be made. Possible assistance packages for both Foothills and
Woodward will be presented to the EAC in March for review. Possible assistance may include Tax
Increment Financing (TIF), Metro Districts, and/or a public improvement fees.
Agenda Item 6: Capital Expansion Fees
Jessica Ping-Small, Sales Tax Manager, provided an update regarding the Capital Expansion Fees project
(last update was in 1996). Information discussed included background, definitions, methodology, fees,
updated fee schedule, neighborhood and community park fees, fire capital improvement fees, police
capital improvement fees, general government fees, single family building permit data, annual revenue
impact analysis, residential and commercial/industrial comparisons, fund balance analysis, and public
outreach efforts. The current update will retain the overall methodology of the 1996 study; however, trail
infrastructure is a new element that will be considered.
The EAC asked for clarification regarding the higher increase in fees for smaller homes. Jessica replied
that the fee change is based on occupancy rates and that occupancy rates in larger homes have
significantly declined over the past 10 years. The legal framework requires that there is a
demonstration of a needs and benefits and determines how you can structure your fees based on
occupancy rates. It was also clarified that the fees only cover a portion of the future development
expenses. After thorough discussion, the EAC made the following recommendation to Council:
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Glen Colton moved and Mike Kulisheck seconded:
The Economic Advisory Commission (EAC) supports the staff recommendation for the updated
Capital Expansion Fee Structure and recommends Council approve it on first reading.
Motion passed 6 – 0
Agenda Item 7: Economic Health Strategic Plan Priorities
Josh Birks commented that the Task Implementation Team is moving forward and provided a snapshot of
outside partners/entities that will be involved as well. A power point summary is attached for review.
Agenda Item 8: Business Assistance Policy Framework Update
Josh Birks provided the most current draft of the Business Assistance Policy Framework Policy, which
includes an introduction/summary, policy intent, policy objectives, policy framework, organization and
management, available assistance tools, application requirements, evaluation criteria, business assistance
inputs, economic and other analyses, minimum company commitments, compliance monitoring, and
annual reporting. The intent of the new Policy is to provide a structure that is more formal and
systematic. Each section was reviewed and feedback was provided as follows:
Glen Colton- Primary jobs is an artificial term. We need to focus more on jobs that support a local
economy and not get more dependent on jobs that are subject to national and global economies (large
employers in Fort Collins). Packages should be based on current market conditions – we don’t need to be
an open door to everyone.
Sam Solt- Our targeted industries are important to our focus in Fort Collins. We should reference the
Clusters in the policy and include them in the evaluation criteria. I don’t believe we should never “not
recruit” because you don’t always know the other side and what is coming (i.e. a large employer could
leave) and changes in the market place can happen very quickly. In addition, a focus allows the Fort
Collins to become known for its economic foundation which further enhances companies
participating in these segments access to private capital and long-term success.
Mike Kulisheck – Businesses should “earn” an assistance package. The assumption should be that you
don’t get a package. This gives us the opportunity to say “no”.
Christophe Febvre – It is reasonable for an assessment of current City economic circumstances to have a
bearing on the decision of, if and how much assistance to provide a company requesting a financial
package. There may be times where market conditions would lead us to be aggressive (economic
downturns, job-sector losses, etc.), and there are times where the City may want to back off assistance
packages (market conditions don’t demand it, booming local economy makes it undesirable to promote
further recruitment, etc.). So, in presenting a report card to Council for a requesting company, there could
value in the staff presenting some economic conditions assessment of this type.
Dan Lenskold – We need to structure the Policy to encourage more primary employers to locate here to
spread the economic risk of a major employer leaving. We should not put all of our eggs in one basket as
far as targeted industries. It is a financial and employment stability risk to rely on government-subsidized
companies (i.e. Alternative Energy Companies).
Blue Hovatter – We need to keep an eye on the federal budget for CSU and federally funded employers.
Josh Birks summarized that this Policy is just a piece of the pie and does not represent our entire focus.
Fort Collins does have a risk in large employers with 40% of jobs held by 7 employers city-wide and does
not include the federally funded entities such as CSU. We are working to move the veil of confidentiality
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earlier, and insure community benefits of a project outweigh the direct costs to the community. Josh also
commented that the Policy would be regularly updated and reviewed on an annual or biannual basis.
Meeting adjourned at 1:37 p.m.
The next meeting is scheduled on March 20, 2013 from 11:00 a.m. – 1:30 p.m.
CIC Room, City Hall