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HomeMy WebLinkAboutDowntown Development Authority - Minutes - 10/02/2003DOWNTOWN DEVELOPMENT AUTHORkT`f REGULAR DiRECTORS.I MEETit4(3 MINUTES OF OCTOBER 2, 2003 REGULAR MEETING THE BOARD OF DIRECTORS OF THE DOWNTOWN DEVELOPMENT AUTHORITY MET IN REGULAR SESSION AT 7:30 A.M. ON OCTOBER 2, 2003 IN THE MEETING ROOM AT HOME STATE BANK LOCATED AT 303 EAST MOUNTAIN AVENUE, FORT COLLINS, CO 80524. PRESENT THERE WERE PRESENT: Kim JORDAN, CHAIR STEVE TAYLOR. VICE CHAIR JASON MEADOR$, SECRETARY/TREASURER BILL BERTSCHY MARY BRAYTON CAREY HEWITT BILL SEARS LARRY STROUD ABSENT: GREG BELCHER STAFF: ROBERT STEINER, EXECUTVE DIRECTOR ANNE GARRISON JIM MARTELL, COUNSEL GUESTS: JOHN FISCHBACH, ALAN KRCMARIK, MYRNE WATROUS, RANDY HENSLEY DAVID SHORT, MIKKAL TOROERSON. TIM WILDER, CLARK MAPES, TM MERRIMAN, Joe FRANK, MICKEY WILLIS, KEVIN BERRYHILL, AL MOREY CALL TO ORDER MS. JORDAN CALLED THE MEETING TO ORDER AT 7:35 A,M. AND ROLL CALL WAS TAKEN. APPROVAL OF MINUTES MR, MEADORS MOVED TO APPROVE THE MINUTES OF SEPTEMBER 4, 2003 THIS WAS SECONDED BY MR. HEWITT AND CARRIED UNANIMOUSLY. BUDGET RESOLUTION$ 2003-08 - OPERATING BUDOEI, 2003-07 - DETERMINE AND FIX MILL LEVY, 2003-08 - PAYMENT OF DEBT SERVICE FOR FISCAL YEAR 2004 WERE SUBMITTED TO THE BOARD FOR ADOPTION, MR, MEADORS MOVED TO ADOPT RESOLUTION #2003-06 WITH AMENDMENTS AS STATED TO THE LICENSE AND PERMIT COLUMN, PROORESSIVE OLD TOWN SQUARE VERBIAGE AND CORRESPONOINO REVENUE ADJUSTMENTS. THIS WAS SECONDED BY MR. BERTSCHY AND CARRIED UNANIMOUSLY, MS. BRAYTON MOVED TO ADOPT RE$OLGT oN #2003-07 WITH AN AMENDMENT $O THAT THE MILL LEVY IN THE SECOND PARAGRAPH MATCHES THE THIRD PARAGRAPH, THUS RAI$INO IT TO 5.0 MILL$. THE MOTION FAILED FOR LACK OF A SECOND. DDA MINUTES PAGE 2 MR. HEWITT THEN MOVED TO ADOPT RESOLUTION #2003-07 WITH THE MILL LEVY AT 4.05 MILLS AND CORRECTIONS AS STATED. MR. TAYLOR SECONDED THE MOTION WHICH CARRIED UNANIMOUSLY, M5. BRAYTON MOVED TO ADOPT RESOLUTION #'20O3-OB FOR PAYMENT OF DEBT SERVICE FOR FISCAL YEAR 2004. THIS WAS SECONDED BY MR. MEADOR$ AND CARRIED UNANIMOUSLY, HOLIDAY PARKING MR. STEINER RECAPPED THAT LAST YEAR THE CITY INSTITUTED A FREE PARKING PROGRAM FOR THE RAMPS ON THE SATURDAYS BETWEEN THANKSGIVING AND CHRISTMAS. THE CITY WAS SUPPORTED IN THIS ENDEAVOR BY BOTH DDA AND DBA. THERE WAS A 20% UPSWING IN USAGE AS A RESULT OF THIS PROGRAM, $O IT 15 PROPOSED THAT THE PROGRAM BE EXTENDED THIS YEAR TO FOUR SATURDAYS. WITH A COST TO DDA OF APPROXIMATELY $ 1 ,334.00. MR. TAYLOR MOVED THAT DDA FUND UP TO $ 1,334.00 FOR HOLIDAY PARKING, THIS WAS SECONDED BY MR. HEWITT AND CARRIED UNANIMOUSLY. DT STRATEGIC PLAN THE BOARD REVIEWED THE FINAL PHASE OF THE DOWNTOWN STRATEGIC PLAN. FUTURE DRAFTS WILL CONTAIN MINOR EDITS ONLY. MESSRS. WILDER AND MAPES PRESENTED, STATING THAT THE OBJECT OF THE PLAN WAS TO FOCUS ON SOME KEY ISSUES, USING A MARKET BASED APPROACH TO DETERMINE BOTH STRENGTHS AND WEAKNESSES. FORT COLLINS HAS A HEALTHY RETAIL BASE AND ENTERTAINMENT DISTRICT WHICH SHOULD BE STRENGTHENED. TEm T SIGNIFICANT IDEAS AND RECOMMENDATIONS, • ENHANCE ON -STREET PARKING ENFORCEMENT • DEVELOP A WAYFINDING PLAN - DIRECTIONALS - BETTER SIONAGE • ORGANIZATIONAL CHANGES - ALLIANCE, DDA AND DBA WORKING TOGETHER TO IMPROVE DOWNTOWN, WITH DDA SERVING AS AN INFORMATION AND BUSINESS PORTAL. • INFILL TRAN5ITION AREAS - SUPPORT REDEVELOPMENT ON WESTSIDE AND RIVER CORRIDOR AREAS. • SIGNIFICANT CATALYST PROJECTS, I.E. PERFORMING ARTS AND CONVENTION CENTER. • TALLER BUILDINGS - CREATIVITY ALLOWED. A STRAIGHT FORWARD REVIEW OF BUILDINGS UP TO SIX AND ONE HALF STORIES, GREATER SCRUTINY BEYOND THAT HEIGHT. • STRATEGIES TO ADDRESS FUTURE PARKING DEMANDS - AID CONGESTION BY PARKING AT THE PERIPHERY OF CORE AREA. • INTEGRATED PEDESTRIAN NETWORK - GETTING PEOPLE FROM A TO B • BETTER CAPTURE OF CSU MARKET - STRONGER COMMUNICATION, BETTER PEDESTRIAN AND TRANSIT LINKS. MAINTAIN DISTINCTION OF INDIVIDUAL NEIGHBORHOODS. • NEW CONCEPTS IN TRANSPORTATION - MAKE BETTER USE OF STREETS DOWNTOWN, I.E. MASON S HOWES COUPLET. REDESIGN CENTERLINE PARKING, VIRTUAL ARTERIALS, AND SIGNAL TIMING. THIS DOCUMENT WILL 00 BEFORE A PLANNING AND ZONING HEARING ON OCTOBER 15, AND BEFORE CITY COUNCIL ON NOVEMBER 4, 2003, THE LAND USE CODE WILL THEN BE REVISED FOR TALLER BUILDINGS. AT THIS JUNCTURE, MR. HEWITT MOVED TO ADOPT RESOLUTION #2003-09 - THE DOWNTOWN STRATEGIC PLAN. WITH THE CAVEAT THAT NO CHANGES ARE MADE TO THE DOCUMENT BY THE PLANNING AND ZONING BOARD. THIS WAS SECONDED BY MS. BRAYTON. MR. BERTSCHY STATED HIS NEED TO ABSTAIN FROM THE VOTE BECAUSE HE HAD NOT HAD THE OPPORTUNITY TO REVIEW THE DOCUMENT IN FULL. THERE WERE OTHER BOARD MEMBERS WHO ALSO FELT THE NEED FOR FURTHER REVIEW. THEREFORE, MR. HEWITT AND MS. BRAYTON W DREW THE MOTION, AND MS. JORDAN REQUESTED THE BOARD COMMIT TO READING AND DISCUSSINO CHANGES WITH MR. STEINER PRIOR TO THE P & Z MEETING. COUNCIL THEN SUGGESTED THAT MR, BERTSCHY IN ANY EVENT, ABSTAIN FROM THE VOTE SINCE AS A MEMBER OF CITY COUNCIL HE WOULD, IN ESSENCE, BE RECOMMENDING THE DOCUMENT TO HIMSELF. PINE STREET LOFT THIS PROJECT IS ESTIMATED TO COST $4.8 MILLION, AND WILL GENERATE TAX INCREMENT IN THE AMOUNT OF $34,000 ANNUALLY. THE PROPOSED SITE IS THE OLD POUDRE VALLEY CREAMERY LOCATION AT PINE AND JEFFERSON. REVIEWING THIS PROJECT FOR THE BOARD, MR. STEINER BELIEVES THE PROPOSAL WARRANTS SUBSTANTIAL PARTICIPATION FOR SEVERAL REASONS. AMONG WHICH R MAY GENERATE OTHER PARTICIPATION IN THE BLOCK. KEVIN BERRYHILL AND AL MOREY PRESENTED. THEY NOTED THAT IT WAS A DIFFICULT SITE AND IT WAS THEIR DESIRE THAT THE BUILDING BLEND IN WITH THE HISTORIC CHARACTER OF DOWNTOWN. THEIR HOPE IS THAT THE PROJECT WILL BE A CATALYST FOR OTHER DEVELOPMENT. THEY ARE NOW NEARING SECOND SUBMITTAL TO CITY STAFF. MS. BRAYTON INQUIRED ABOUT A COMPLETION DATE, AND PARKING WAS DISCUSSED. COMPLETION SHOULD BE BY THE END OF 2004. THEY WILL DDA MINUTES PAGE 3 ADD PARKING ON PINE STREET, AND TWENTY SEVEN SPACES IN THE PARKING GARAGE, THERE WILL ALSO BE SIX HANDICAPPED PARKING SPACES, THEN MR. BERTSCHY MOVED TO SUPPORT THE PROJECT UP TO $500,000. THIS WAS SECONDED BY MR. HEWITT AND CARRIED UNANIMOUSLY. NATIONAL ASSOCIATION IN AN EARLIER REVIEW OF THIS PROJECT, THE BOARD COMMITTED $200,000. AND REQUESTED FOR INTERPRETATION MR. MERRIMAN RETURN WHEN DESIGNS WERE FINALIZED. THE CHERRY STREET FACIADE HAS BEEN MADE MORE PEDESTRIAN FRIENDLY, AND A SUGGESTION THAT THE PLAZA SPACE REFLECT MORE OF A CAMPUS LIKE SETTING WAS ACCEPTABLE. MR. MERRIMAN EXPLAINED THEY HAD ATTEMPTED TO REFLECT SOMETHING OF THEIR WORK IN THE CHARACTER OF THE BUILDING, AND GIVEN CONSIDERATION TO WHAT 15 AROUND THEM. WOLF LYONS HAS SUGGESTED SOME MODIFICATIONS, AND THESE WERE SHOWN, AND MR. STEINER SUGGESTED THAT ON THERE BE NO WOOD PANEL AND PLANK DOOR ON THE CHERRY STREET FACADE SIDE, AND INCLUDE ADDITIONAL LANDSCAPING EXTENDING INTO THE PLAZA AREA. MR. MERRIMAN WILL BE READY TO BREAK GROUND IN MID NOVEMBER AND FINISH BY MAY 1, 2004. 223 NORTH COLLEGE MR, TORGERSON REPORTED THAT WHILE HE HAS BEEN SUCCESSFUL IN NEGOTIATING THE REMOVAL OF THE BILLBOARDS, IT COULD NOT TAKE PLACE FOR ANOTHER THREE YEARS. THE BOARD PREVIOUSLY APPROVED $50.000 TO ACQUIRE THE FA4ADE EASEMENT, SUBJECT TO THE REMOVAL OF THE BILLBOARDS. TODAY IT IS 5UGGESTED THAT DDA'5 COMMITMENT BE HONORED AT THE TIME THE BILLBOARDS ARE TAKEN DOWN. MR. STEINER SUGGESTED IN HIS MEMO TO THE BOARD THAT THERE MAY BE A DOWNWARD ADJUSTMENT BASED PROPORTIONALLY ON THE CONTINUED INCOME RECEIVED BY MR. TORGERSON FOR THE BILLBOARD LEASE. MR. STEINER ALSO STATED THAT THE BOARD SHOULD DETERMINE A TIME FRAME. WHICH AT A MINIMUM BECOMES VOID IN 201 1 WHEN THE TIF DISTRICT DISSOLVES. MR, TAYLOR INQUIRED ABOUT THE FEASIBILITY OF DDA PURCHASING THE LEASING RIGHTS, AND MS. JORDAN SUGGESTED UTILIZING A CONSERVATIVELY REMODELED BILLBOARD TO PROMOTE DOWNTOWN, AND ADVERTISE EVENTS TAKING PLACE. MS. BRAYTON FELT THAT MORE INFORMATION WAS NEEDED TO MAKE A DECISION. AND SUGGESTED IT MIGHT BE A GOOD RETREAT TOPIC. PARKING EQUIPMENT RESOLUTION #2003 1 O IS INCLUDED IN THE PACKETS FOR REVIEW, IT COMMITS IN WRITING WHAT RESOLUTION THE BOARD ALREADY APPROVED AT ITS LAST MEETING. OTHER BUSINESS RETREAT F0005 - THE BOARD 15 ASKED TO CONTACT MR. STEINER WITH ANY DISCUSSION POINTS APPROPRIATE FOR THE NOVEMBER RETREAT. ADJOURN THERE BEING NO FURTHER BUSINESS, THE MEETINO ADJOURNED AT 9:55 A.M. JASON MEADORS, SECRETARY DOWNTOWN DEVELOPMENT AUTHORITY TO: DDA Board of Directo FROM: Chip Steiner 0 DATE: November 3, 2003 RE: Affordable Housing Trust Attached to this memorandum is a proposal to create a statewide affordable housing trust and a fact sheet about the need for affordable housing. John Kefalas of Catholic Charities will present the proposal to the DDA Board. The outline of this proposal is to increase the documentary fee for residential properties from one cent per $100 of valuation to four cents per $100 of valuation and from one cent to two cents per $100 of valuation for commercial properties and vacant land. This would generate around $26.5 million annually. Fifty percent of the generated revenues would be reserved for households falling below the 50 percentile of adjusted median income (AMI) with priority given to those households at or below 30 percent AMI. Generally, trust fund revenues could not serve any household above 80 percent AMI. The fund would target preservation of existing affordable housing, new construction of both for -sale and rental affordable housing, rehabilitation of affordable housing, down payment assistance, and special -needs housing. It is unclear to DDA staff how funds would be allocated (grant process or some kind of dollars per population ratio) or what entity would administer the funds at the State level. Nor is it clear whether local agencies would apply for or receive "block" grants or whether funding would be on a project -by -project basis. Without question, the idea of an affordable housing trust fund would help bridge the growing gap between incomes and housing costs. The $26.5 million generated by the increase in doc fees is modest when considered on a state-wide basis. Nevertheless, encouraging the use of trust fund monies in combination with other revenue sources (e.g. Housing Authority financial programs, tax increment financing, historic preservation grants and tax credits, and Federal and State affordable housing tax incentives) means that considerable leverage can be provided to the housing development community. Staff recommends the Board endorse this concept although with the caveat that it needs clarification on the allocation process. While the Fort Collins Housing Authority is the logical entity to administer the funds locally, the DDA is in a good position to encourage developers to combine affordable housing trust funding with tax increment financing. 10 n1d T.0 RnuarP . SnitP 220 s ni ,fA i3i7S�T91 4' %%' 1ffiYt 3.Q80 +-. The Colorado Housing Trust Fund Coalition ColorudoHouunp Housing Fund Initiative, c/o of Catholic Charities, PO Box 19020, Denver, CO 80219-0020 Trust Fund Cuelftion 970-484-5010 x205; 303-742-0823 x773; 970-484-0259 (fax); www.coloradohousinarustfund.or > A Summary of the Colorado Housina Trust Fund Proposal for Leaislation INTRODUCTION The Colorado Housing Trust Fund (CHTF) will be a permanent state revenue source dedicated to the creation and preservation of high quality and affordably priced housing throughout Colorado. The CHTF offers a long-term solution to our state's affordable housing problem and will provide a needed stimulus to the Colorado economy by producing jobs, wages and tax revenue. The CHTF will create and preserve affordable housing by encouraging public/private partnerships, producing jobs, generating tax revenues and providing direct social and economic benefits to children and families. Rural and urban communities and the entire state of Colorado will benefit from the Colorado Housing Trust Fund. PURPOSE To establish a dedicated and dependable source of public revenue to fund the provision of affordable housing throughout the State of Colorado to be known as the Colorado Housing Trust Fund. USES Goal The goal of the Colorado Housing Trust Fund is to produce and preserve affordable housing for very low, low and moderate -income households in Colorado. The fund defines housing as affordable when total housing costs (such as rent plus utilities or mortgage and related expenses) represent approximately 30% of gross household income. Types of Projects To Be Funded The trust fund is intended to support a wide range of affordable housing production and preservation activities. These activities may include, but are not limited to: Preservation of existing affordable housing; New construction of affordable for -sale and rental housing, including necessary infrastructure development and land acquisition; • Rehabilitation of affordable for -sale and rental housing; • Down payment assistance; • Development of special -needs housing Eligible Applicants and Projects Eligibility to access trust funds will include all types of organizations including for profit and nonprofit entities, housing authorities, other agencies of local or state governments, local government special districts and any combinations of the above. Partnerships among entities that more effectively further the goals of the trust fund are encouraged, but not required. The trust fund will fund organizations, not individuals; individuals seeking support can access trust funds through participating organizations. To be eligible for funding, applicants must demonstrate that: • The proposed project is responsive to local needs and priorities. • The applicant has the capacity and/or prior experience required to develop or manage the project. • Eligible projects will be affordable, in whole or in part, to very low, low or moderate -income households. In the case of mixed -income projects, trust funds may only be used to support the development of the affordable units. • Affordable units will remain affordable for a minimum of 30 years, with priority given to projects that ensure permanent affordability. Homeownership projects may allow a sharing of appreciation on affordable units with eligible homeowners, while still preserving the long-term affordability of these units. • Funds from the housing trust will leverage additional funding from public and private sources. • In the case of new construction, projects will incorporate universal design features for people with disabilities, except where it can be shown that this will make the project unfeasible. Priorities In addition to these requirements, the trust fund prioritizes projects that: • Exceed the minimum standards for number of units that are wheelchair accessible and/or projects that incorporate universal design features throughout the property. • Demonstrate the availability of services such as transportation and childcare for interested residents when they are appropriate to the project. • Provide for meaningful resident participation in the management of the property. • Homes built or renovated via the trust fund shall be encouraged to be energy efficient. Type of Funding Provided The trust fund may make both grants and loans, with priority in the use of grant funds to be given to projects serving very low or low-income households. The trust fund requires that 50% of funds be reserved annually for projects serving households up to 50% AMI, with priority given to those projects serving households up to 30% AMI. Except in very high cost communities, trust funds may only be used to support the development of units serving households with incomes up to 80% AM]. ADMINISTRATION The agency charged with the administration of the CHTF will have the following qualifications: • Capacity to manage grant and loan funds for affordable housing development. • Experience working with affordable housing developers. • Capacity to work with all the partners and industries involved in affordable housing development, including federal, state and local agencies, private developers and banks and other financial institutions. • Commitment to providing affordable housing for the CHTF target populations. In addition, the process by which the CHTF is administered should: • Be coordinated with other public funds for affordable housing through the use of common application formats, requirements and/or due dates; in order to streamline the process of applying to multiple sources of funding. • Be cost-effective in order to minimize administrative costs. • Be responsive to local needs and priorities. Allow for stakeholder input into the administration of the CHTF. • Ensure that funds are equitably distributed throughout the state. REVENUE SOURCE Increase in the County Clerk & Recorder Documentary Fee (Section 39-13-102 (1), C.R.S.) The Colorado Housing Trust Fund Coalition (CHTFC) Executive Committee is recommending an increase in the documentary fee on residential, commercial/industrial and vacant -land real estate transactions as the dedicated revenue source for the proposed CHTF. State law requires that whenever a real estate transfer occurs, the buyer must pay a fee to the county clerk and recorder to record the deed of trust and other real estate documents. The documentary fee is based on the sales price of the property and applies when the property value exceeds $500. The documentary fee is currently set at $.01 per $100 of valuation. The proposed documentary fee increase would be $.04 per $100 in value on residential property, $.01 per $100 in value on commercial/industrial property and vacant land. The funds generated by the documentary fee increase would be collected at the county level and transferred to the state treasury. A $200,000 home sale would contribute $80 to the housing trust fund, while a $1 million commercial sale would contribute $100. The reduced -rate fee structure for commercial and industrial real estate transactions is an acknowledgment that commercial properties pay a higher proportion of the property taxes. The Colorado Housing Trust Fund Coalition (CHTFC) determined that a documentary fee increase is appropriate and reasonable because these funds would be dedicated to the sole purpose of creating and preserving affordable housing. Furthermore, this particular revenue source can generate the amount of funds needed to help provide the required housing - $26.5 million annually. This revenue source will leverage other financial resources and capital that will be re- invested into the homebuilding and real estate industries to their direct benefit. Another advantage of the documentary fee increase is its direct linkage to the real estate market and its ability to benefit from appreciation in property values that may occur in future years. Commercial/industrial property was included because of the logical association between jobs and housing, and since the CHTF would provide an economic stimulus to the Colorado economy, commercial and industrial developments would directly benefit. Vacant land is included because we need land to build homes, and a contribution from this real estate category will increase the developers' capacity to create affordable housing on this land. The Colorado Housing Trust Fund Cnl•n�7 Investing in Colorado's Future Trust Fund Coulydon Increased public investment in affordable housing would provide a critical economic stimulus while helping to create housing opportunities for Colorado's families and communities. The Colorado Housing Trust Fund (CHTF) will be a permanent state revenue source dedicated to the creation and preservation of high quality, affordably priced rental and homeownership opportunities. Colorado's Housing Needs • The lack of quality affordable housing is a statewide concern. Providing safe, decent, affordable housing is fundamental to the well-being of individuals, families and communities. • In 2002, the number of rent -burdened Colorado households, those earning less than $20,200, increased to 121,703. Many of these people are Colorado's service and retail workers. Despite higher vacancy rates, at least 36,502 new affordable rental homes would need to be developed in 2003 to begin to meet the demand for those most in need. • Meanwhile, teachers, police officers and other professionals struggle to afford a starter home in most communities. There are 42,354 Colorado households earning between $40,000 and $50,000 that would like to become homeowners. In 2002, the Colorado median home price was $192,121 - well beyond their means. • One in 5 homeowners and 2 in 5 renters in Colorado are paying more than 30% of their income towards monthly housing costs. These families are often forced to do without health care, car insurance, nutritious food and other family essentials. • According to the 2003 point -in -time survey, unemployment and inability to pay housing costs were the leading causes of homelessness in the Denver metro area; 67% are persons in families. Why the Colorado Housing Trust Fund? • The private market alone cannot solve Colorado's affordable housing crisis, and existing sources of equity are being fully utilized. • A housing trust fund will allow local communities to determine their priorities and more effectively plan for the housing needs of their residents. • Housing trust funds are proven tools. Across the nation, 34 states have created housing trust funds that successfully provide grants and loans to support affordable housing development. • A housing trust fund will be a flexible source of funding. The CHTF will support a variety of activities including new construction, preservation, land acquisition, down payment assistance and helping to offset infrastructure costs through both loans and grants. Economic Benefits • According to the Colorado Housing Trust Fund Impacts Report, a $26.5 million trust fund will produce 3,400 affordable housing opportunities, create 3,200 jobs, generate $334 million in economic activity and realize $26 million in tax revenue annually, with $13 million to local governments. • The construction and real estate industries alone would experience direct, indirect and induced economic impacts of $290 million and the creation of 2,804 jobs annually. • Each dollar of equity investment in a trust fund would leverage an additional ten dollars of public and private investment in affordable housing. • Formerly rent -burdened households will have average annual savings of approximately $2,400 per household. This will help low-income families become more self-sufficient. • Colorado's economic development efforts will receive a needed boost by supplying affordable housing near employment centers, enhancing our competitive positioning for future business. For More information contact: John Kefalas at 970-484-5010 x205 or 303-742-0823 x773; info ancoloradohousingtrusffund.org; visit our web site: www.coloradohousingtrusffund.org The Colorado Housing Trust Fund Coalition is a broad -based coalition whose mission is to establish a statewide housing trust fund with a dedicated source of public revenue for the creation and preservation of affordable housing throughout Colorado. DOWNTOWN DEVELOPMENT AUTHORITY TO: DDA Board of Directo FROM: Chip Steiner 0 DATE: November 3, 2003 RE: 223 North College (Billboards on Mikal Torgerson's building) Last month Mika] Torgerson explained that the agreement for the DDA to buy a facade easement on his building at 223 North College in return for the removal of the billboards on top of the building could not proceed because the billboard lease could not be terminated for another three years. Mr. Torgerson requested the Board consider buying the facade easement at the point in the future when the billboards could be removed. During the discussion, Steve Taylor suggested the DDA buy the billboard lease and Kim Jordan suggested the DDA use the billboards to promote downtown and downtown events. Mr. Torgerson is agreeable to the idea of the DDA buying the billboard lease. However, he does not wish to have the billboards used beyond the term of the existing lease. If the Board is comfortable with this legal counsel can draft a contract that stipulates removal of the signs at the end of the current lease. NOTE: DDA legal counsel needs to review the billboard leases prior to a deal being executed with Mikal Torgerson. amDOWNTOWN DEVELOPMENT AUTHORITY TO: DDA Board of Directo 4 FROM: Chip Steiner DATE: November 3, 2003 RE: Downtown Strategic Plan Last month the DDA Board postponed making a recommendation on the Downtown Strategic Plan until it had been reviewed by the Planning and Zoning Board. P&Z recommended approval of the entire plan although four of the six members present disagreed with the building height suggestions (minutes of the meeting are attached for Board consideration). City staff will be present at the meeting to re -visit the building height issue. In addition to the P&Z minutes, the packet includes preliminary materials on adding/revising height language in the land use code. Generally, the plan allows buildings as high as 12 stories on a few downtown blocks and then tapers the height down as sites approach residential neighborhoods and the historic center of the downtown. DDA staff supports this concept. The Board is being asked to make a recommendation to City Council on the entire plan. If it supports the plan it can still cite reservations about specific issues (e.g. building height, parking, areas where development is encouraged, etc.). The Plan retains two recommendations the Board will be discussing during the retreat portion of this meeting: 1) creation of a business improvement district to fund increased marketing; 2) the addition of a DDA staff member to market downtown real estate.