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HomeMy WebLinkAboutDowntown Development Authority - Minutes - 12/01/2005DOWNTOWN DEVELOPMENT AUTHORRY REGULAR DIRECTORS' MEEnNG MINUTES OF DECEMBER 1, 2005 REGULAR MEETING THE BOARD OF DIRECTORS OF THE DOWNTOWN DEVELOPMENT AUTHORITY MET IN REGULAR SESSION AT 1 1 :00 A.M. ON DECEMBER 1, 2005 IN THE MEETING ROOM AT HOME STATE BANK LOCATED AT 303 EAST MOUNTAIN AVENUE, FORT COLLINS, CO 80524. PRESENT STEVE TAYLOR. CHAIR JACK WOLFE, VICE -CHAIR CAREY HEWITT, SECRETARY(TREASURER KIM JORDAN KAREN WEITKUNAT (ALTERNATE COUNCIL LIAISON) GEORGE BRELIG JASON MEADORS BILL SEARS LARRY STROUD STAFF ROBERT STEINER, EXECUTIVE DIRECTOR JIM MARTELL, COUNSEL LINDA GULA GUESTS DIANE JONES. KATHY CARDONA. DAVE EDWARDS, MIKE JENSEN, MCCABE CALLAHAN, JUDY SCHERPELZ, TM MERRIMAN, KAREN WEITKUNAT CALL TO MR. TAYLOR CALLED THE MEETING TO ORDER AT 7:30 A.M. ROLL CALL WAS TAKEN. ORDER MR. TAYLOR THANKED BOTH LARRY STROUD AND JASON MEADORS FOR THEIR YEARS OF SERVICE TO THE DDA AND PRESENTED THEM EACH WITH APPRECIATION PLAQUES FROM THE BOARD. THIS MEETING WAS THEIR LAST MEETING. APPROVAL OF MR. MEADOR$ MOVED TO APPROVE THE MINUTES OF NOVEMBER 3, 2005 AND THE RETREAT NOTES OF MINUTES NOVEMBER 3, 2005. SECONDED BY MR. WOLFE AND PASSED UNANIMOUSLY. ROCKY MOUNTAIN MR. STEINER STATED THERE ARE TWO PIECES TO THE RAPTOR CENTER AGENDA ITEM. RAPTOR I . A PRESENTATION ON THE CONCEPT PLAN. PROGRAM 2. A PROPOSAL FOR DDA FINANCIAL PARTICIPATION. MR. TM MERRIMAN, EXECUTIVE DIRECTOR OF THE NATIONAL ASSOCIATION FOR INTERPRETATION, GAVE AN OVERVIEW OF THE CONCEPT PLAN. HE FOCUSED ON THE MISSION, CORE VALUES, GOALS, LOCATION, GUIDELINES AND THE VOLUNTEERS. THE BOARD HAD COMMENTS ABOUT COMPARISONS TO THE TUCSON SONORAN DESERT MUSEUM AND QUESTIONS ABOUT THE POSSIBILITY OF SHARING THE SITE WITH OTHER RELATED USES. MR. $MINER REVIEWED THE REQUEST FOR FINANCIAL PARTICIPATION FROM THE DDA.. HE STATED THE DDA IS BEING ASKED TO PRONOE $ 1 MILLION UP FRONT MONEY WHICH WOULD BE USED TO PAY FOR MOST OF THE HARD DEVELOPMENT COSTS OF THE 3.5 ACRE PARCEL. THE AUTHORITY WOULD RECOUP $500,000 FROM THE SALE OF THE LOTS. HE STATED STAFF CANNOT SUPPORT THIS APPROACH. THE DDA IS BEINO ASKED TO TAKE THE ENTIRE DEVELOPMENT RISK ON THE 3.6 ACRE PARCEL WITH NO ASSURANCE OF TAX INCREMENT AND NO OUARANTEE THAT THE LOTS WILL SELL AT THE PROJECTED PRICES AND WITH NO KNOWLEDGE OF WHEN THE LOTS WILL SELL. HE FURTHER STATED THE INCREMENT GENERATED BY THE IMPROVED LOTS IS ESTIMATED AT $28.000 ANNUALLY AND $ 1 73,500 OVER A SIX -YEAR COLLECTION PERIOD WHICH FALLS FAR SHORT OF THE REQUESTED INVESTMENT, MR. STEINER WENT ON TO NOTE THE PROJECT IS IMPORTANT BUT THE FINANCIAL PLAN AS OUTLINED DOES NOT SEEM TO BE REALISTIC AND THE REQu EST TO THE DOA 13 SIMPLY NOT FEASIBLE. DDA BOARD MINUTES PAGE 2 DECEMBER 1. 2005 BOARD DISCUSSION REVOLVED AROUND THE TIMETABLE FOR THE PROJECT, THE POSSIBILITY OF SHARED USES, PRIVATE FUNDRAISINO, AND THE POSSIBILITY OF THE DDA TO COMMIT ON THE BACK END OF THE PROJECT. MR. TM MERRIMAN STATED THEY NEED AN EARNEST DESIRE FROM THE DDA AND THE CITY TO GET THIS PROJECT DOING AND TO HELP THEM "NO A NON-PROFIT PARTNER FOR THE BIGGER DEVELOPMENT. MR. TAYLOR STATED THAT BOARD SUPPORT HAS NOT DIMINISHED, HOWEVER, MS. GARRIT9ON'S EMAIL (INCLUDED IN THE PACKET) CREATED SO MANY QUESTIONS FOR HIM. HE STATED WE HAVE TO GO FURTHER INTO THE PROCESS TO DETERMINE WHERE WE MIGHT BE ABLE TO FUND AND THE VIABILITY OF THE PROJECT. SUGGESTIONS TO MR. MERRIMAN FROM THE BOARD; CSURF MAY BE ANOTHER FUNDING SOURCE. LOCO MIGHT BE EXPLORED FOR DEVELOPMENT OF THE SITE. EXPLORATION OF THE ISSUES AT THE VINE/LEMAY INTERSECTION MR. TAYLOR STATED THAT YHE BOARD WOULD INSTRUCT MR, STEINER TO CONTINUE WORKING WITH THE RAPTOR CENTER AND MAI ON THIS PROJECT AND CONTINUE TO LOOK FOR ANSWERS TO SOME OF THE QUESTIONS REGARDING FUNDING. MR. STEINER STATED HE WOULD ALSO KEEP THE NATIONAL DEVELOPMENT COUNCIL IN THE LOOP. COMMUNITY MR. STEINER STATED THE DOA HAS LONG DISCUSSED THE IDEA OF ESTABLISHING A CULTURAL CENTER FUND FOUNDATION AT THE COMMUNITY FOUNDATION. THE CONCEPT WOULD BE TO CREATE AN UMBRELLA FUND AND, BENEATH FUND THAT, SPECIAL PROJECT FUNDS FOR VARIOUS PROJECTS AND PROGRAMS THAT FIT WITH OR CONTRIBUTE TO THE LARGER CULTURAL CENTER CONCEPT. THE ADVANTAGE TO THE SUB -FUNDS IS THAT DONATIONS MADE TO THEM THROUGH THE DDA UMBRELLA FUND WOULD QUALIFY FOR ENTERPRISE ZONE TAX CREDITS. TIME ADVANTAGE TO THE DDA, OTHER THAN PROVIDING SUCH A DONATION CONDUIT FOR PROJECTS THAT ADVANCE THE IDEA OF THE CULTURAL CENTER IS THAT R AVOIDS ALL THE PAPERWORK ASSOCIATED WITH EZ PROJECTS. MR. STEINER STATED STAFF IS SUGGESTING THE DDA INVEST $ 1 50,000-$200,000 AS ITS CONTRIBUTION TO THE UMBRELLA FUND. MR, STEINER WAS ASKINO PERMISSION FROM THE BOARD TO ENTER INTO THE AGREEMENT WITH THE COMMUNITY FOUNDATION. THE BOARD DISCUSSED THE BENEFITS OF THIS PROCESS BEING; - A MANAGEMENT ENTITY FOR PEOPLE TO GIVE MONEY TO VARIOUS THINGS, RATHER THAN SETTING UP THEIR OWN CHARITABLE FOUNM,TION. • SINCE THE DDA IS AN ENTERPRISE ZONE PROTECT THERE WOULD BE THE TAX ADVANTAGE TO ANYONE AS A SUB FUND WITH THE UMBRELLA FUND. THEY HAVE TO GIVE MONEY THROUGH THE DDA TO CAPTURE THE ENTERPRISE ZONE TAX CREDIT. - THIS WOULD ALLOW PEOPLE TO MAKE A CONTRIBUTION TO SOMETHING LIKE THE CULTURAL CENTER CONCEPT OR IF SOMEONE WAS ENAMORED WITH A PARTICULAR PROJECT THEY WOULD HAVE A MECHANISM TO CONTRIBUTE MONEY. - THE MONEY DOES NOT GET SPENT WITHOUT DDA APPROVAL AND IT SHOWS UP AS AN ASSET ON OUR FINANCIAL STATEMENT. MR.DAVE EDWARDS, VICE CHAIR OF THE COMMUNITY FOUNDATION, STATED THE FOUNDATION IS A 30 YEAR OLD COMMUNITY BASED PHILANTHROPIC ORGANIZATION WITH $30 MILLION IN ASSETS. THEY AUTHORIZE GRANTS TO NON PROFIT ENTITIES IN THE COMMUNITY. HE STATED THE FOUNDATION IS LOOKING AT THIS AS A PARTNERSHIP AND IN SOME SENSE AS A BIT OF AN EXPERIMENT MS. JORDAN ENCOURAGED MR. STEINER TO BE VERY CLEAR ON HOW THE PROCESS WILL WORK BOTH FOR DONORS AND THE DDA. MR. WOLFE MOVED THAT THE DDA INVEST $200,000 AS A CONTRIBUTION TO A NEW FUND TO BE ESTABLISHED AT THE COMMUNITY FOUNDATION OF NORTHERN COLORADO: THE NAME OF THE FUND TO BE TIED TO THE CULTURAL NEIGHBORHOOD DISTRICT OR HOWEVER WE DEFINE IT; AND TO AUTHORIZE THE EXECUTIVE DIRECTOR TO EXECUTE THOSE DOCUMENTS. SECONDED BY MR. MEADORS AND PASSED UNANIMOUSLY, DDA MINUTES PAGE 3 DECEMBER 1. 2005 ICE RINK MR. STEINER STATED THE CITY NEEDS A LICENSE TO OPERATE THE ICE RINK ON THE PLAZA IN OLD TOWN AGREEMENT SQUARE. HE STATED HE IS ASKING THE BOARD TO AUTHORIZE HIM TO ENTER INTO A LICENSE AGREEMENT. MR. MEADORS MOVED TO AUTHORIZE COUNSEL AND THE EXECUTIVE DIRECTOR TO ENTER INTO A LICENSE AGREEMENT WITH THE CITY SPECIFICALLY FOR THE SEASONAL OPERATION OF AN ICE RINK IN OLD TOWN SQUARE, WITH SAID LEASE TO BE RENEWABLE ON AN ANNUAL BASIS, WITH A NOMINAL LICENSING FEE OF $ 1 /YEAR TO BE CHARGED TO THE LICENSEE. SECONDED BY MR. STROUD AND PASSED UNANIMOUSLY. KUNC RADIO MR. STEIN" STATED HE HAD MET WITH KUNC REPRESENTATIVES ABOUT BUYING RADIO SPOTS TO ADVERTISING ADVERTISE DDA MEETINGS AND TO INFORM THE PUBLIC ABOUT SPECIAL PROJECTS THE AUTHORITY IS INVOLVED WITH. HE WENT ON TO NOTE THE MOST EFFECTIVE APPROACH WOULD BE TO PURCHASE SPOTS FOR THE FRIDAY, MONDAY, AND TUESDAY PRIOR TO A BOARD MEETING. THE DDA CAN BUY SPOTS TO BE RUN DURING SPECIFIC HIGH LISTENER PROGRAMS, THIS WOULD COST ABOUT $4,600 ANNUALLY. MR. STEINER WAS ASKING THE BOARD FOR AUTHORIZATION TO EXPEND THESE FUNDS FROM THE ADMINISTRATIVE BUDGET FOR THIS PURPOSE. IT WOULD FOCUS ON SPECIFIC PROJECT INFORMATION AS WELL AS PROVIDING INFORMATION TO THE PUBLIC ON DATES AND TIMES OF MONTHLY BOARD MEETINGS. MR. SEARS MOVED TO ALLOCATE UP TO $4800 FOR RADIO SPOTS ON KUNC, SECONDED BY MS. JORDAN AND PASSED UNANIMOUSLY. CULTURAL MR. STEINER STATED BOND COUNSEL HAS RULED THAT THE DDA CANNOT FUND THE CULTURAL CENTER CENTER PROGRAM WITH TAX INCREMENT MONIES. HE WENT ON TO NOTE STAFF AND DDA LEGAL COUNSEL HAVE BEEN FUNDING WORKING WITH THE CITY FOR A RESOLUTION. OPTIONS INCLUDE USING $580,000 IN TIF MONEY TO PAY FOR CITY CAPITAL IMPROVEMENTS WITH THE CENTRAL BUSINESS DISTRICT AND HAVING THE CITY GRANT THE DDA AN EQUIVALENT AMOUNT OF FUNDS FROM ITS OWN RESOURCES OR BORROWING THE FUNDS FROM THE CITY AND PAYING THE LOAN BACK FROM ADMINISTRATIVE MONIES OVER THE NEXT FIVE OR SIX YEARS. BORROWING THE MONEY MEANS INCURRING INTEREST COSTS (ESTIMATED AT FIVE PERCENT) AND FINDING ROUGHLY $95,000 ANUALLY FOR THE NEXT SIX YEARS IN THE AUTHORITY'S ADMINISTRATIVE BUDGET. SWAPPING FUNDS WILL NOT HAVE AN IMPACT ON THE ADMINISTRATIVE BUDGET BUT WILL INCUR BOND ISSUANCE COSTS. HE STATED STAFF IS RECOMMENDING THE SWAP APPROACH. MR. STEINER WAS ASKING FOR BOARD DIRECTION. THERE WAS DISCUSSION AMONG BOARD MEMBERS ABOUT THE PROCESS AND PERCEPTION OF WHAT IS HAPPENING WITH THIS MONEY AND WHETHER THIS IS AN ACCEPTABLE INTERIM MEANS TO ACHIEVING THE GOAL OF ACCESSING THE $560,000 FOR THE CULTURAL PROGRAM. MR. STEINER WENT ON TO STATE BOND COUNSEL'S RULING AGAINST USING TIF MONIES FOR CULTURAL CENTER PROGRAMMING STEMS FROM THE ORIGINAL TIF AUTHORIZING BALLOT LANGUAGE THAT SPECIFIES FUNDING OF CAPITAL IMPROVEMENTS ONLY. TO RECTIFY THIS, VOTERS NEED TO APPROVE NEW LANGUAGE AUTHORIZINO THE USE OF TIF FOR ANYTHING PROVIDED FOR IN THE DDA'B PLAN OP DEVELOPMENT. THE INTENT IS TO PUT THIS ON THE BALLOT IN NOVEMBER. IF APPROVED, TIF MONIES IN THE FUTURE OAN BE USED FOR THE CULTURAL CENTER PROGRAM. MS. JORDAN MOVED TO AUTHORIZE THE EXECUTIVE DIRECTOR TO WORK WITH THE CRY TO DEVISE AN IGA CONSISTENT WITH THE PLAN OF DEVELOPMENT ENCOMPASSING THE PROVISIONS OF THE SECOND PARAGRAPH OF THE STAFF MEMO'. SECONDED BY MR. SEARS AND PASSED UNANIMOUSLY. *PARAGRAPH 2 OF STAFF MEMO - STAFF AND DDA LEGAL COUNSEL HAVE SEEN WORKING WITH THE CITY FOR A RESOLUTION. OPTIONS INCLUDE USING $560.000 IN TIF MONEY TO PAY FOR CITY CAPITAL IMPROVEMENTS WITHIN THE CENTRAL BUSINESS DISTRICT AND HAVING THE CITY GRANT THE DDA AN EQUIVALENT AMOUNT OF FUNDS FROM ITS OWN RESOURCES OR BORROWING THE FUNDS FROM THE CITY AND PAYING THE LOAN BACK FROM ADMINISTRATIVE MONIES OVER THE NEXT FIVE OR SIX YEARS. DDA MINUTES PAGE 4 DECEMBER 1. 2005 OTHER MS. WEITKUNAT STATED SHE HAS ASKED STAFF (WITH COUNCIL SUPPORT) TO BEGIN A DISCUSSION ON BUSINESS LOOKING AT THE LAND USES IN THE DOWNTOWN AREA AND DEVELOPING A SYSTEM OF APPROPRIATE MIXED USES FOR ALL BUSINESS. SHE SUGGESTED THAT THE DDA MAY WANT TO BE A CONTRIBUTOR IN THAT DISCUSSION. MS. JORDAN SUGGESTED THAT THE BOARD MAY WANT TO HAVE A 013OU3510H ABOUT REVIEWING FOR THE COMING YEAR. MR. STEINER STATED HE THOUGHT WE HAD PLANNED TO DO THIS ONCE A YEAR AT OUR WORKSESSION WITH CITY COUNCIL. MR. HEWITT 3UGGESTED THAT THE BOARD NEEDS TO Discuss THE DOWNTOWN PLAN IN THE NEAR FUTURE, ADJOURN THERE BEING NO FURTHER BUSINESS. THE MEETING ADJOURNED 9:30 A.M. aL�,�3 eo-to CAREY HEVIkT. SECRETARY