HomeMy WebLinkAboutDowntown Development Authority - Minutes - 08/04/2005DOWNTOWN DEVELOPMENT AUTHORITY
REout1AR DIRECTORS MEETING
KIM JO RDAN, CHAIR
KJ6 T KAS!40tN, COUNCIL LWSON
WNOA OIJI A. 'STAFF I,. AMON
MINUTES OF AUGUST 4, 2005
THE BOARD OF DIRECTORS OF THE DOWNTOWN DEVELOPMENT AUTHORITY MET IN REGULAR SESSION AT
7:30 A.M. ON AUGUST 4, 2005 IN THE MEETING ROOM AT HOME STATE BANK LOCATED AT 303 EAST
MOUNTAIN AVENUE, FORT COLLINS, CO 80524.
PRESENT Kim JORDAN, CHAIR
JACK WOLFS
KURT KASTEIN
GEORGE BREUG
BILL SEARS
CARP Hewm
ABSENT STEVE TAYLOR
LARRY STROUD
JASON MEADOR$
STAFF ROBERT STEINER. EXECUTIVE DIRECTOR
LUCIA LILEY, COUNSEL
UNDA GULA
GUESTS- DARIN ATTEBERRY, KAREN WOTKUNAT, CHUCK SEEST, ALAN STROPE, COREY SEITZ, DAVE EDWAROS, KAREN
GARRISON, DAVID SHORT.
CALL TO MS. JORDAN CALLED THE MEETING TO ORDER AT 7:35 A.M. ROLL CALL WAS TAKEN.
ORDER
APPROVAL OF MR. SEARS MOVED TO APPROVE THE MINUTES OF JULY 7, 2005. SECONDED BY MR. WOLFS AND
MINUTES PASSED UNANIMOUSLY.
URBAN LIVING MR. STEINER REFERRED TO A REOUEST FOR DDA PARTICIPATION IN A PROJECT CALLED URBAN UVINO LOFTS
LOFTS LOCATED AT 2 1 0-2 12 WEST MAGNOLIA. HE STATED THERE ARE 16 RESIDENTIAL UNITS ANO A SMALL
AMOUNT OFFICE SPACE. ESTIMATED COST OF THE PROJECT IS $8.9 MILLION. THE DEVELOPERS HAVE
PROJECTED $74,050 IN ANNUAL INCREMENT, ACCUMMULATINO $370, 248 OVER FIVE YEARS. THE
REOUEST TO THE DDA IS FOR $425,0786, HE STATED STAFF IS SUPPORTING THE PROJECT; R IS
ATTRACTIVE, WELL DESIGNED, AND IT INCLUDES MANY ENERGY EFFICIENT FEATURES.
STAFF BELIEVES THE PROJECT'S APPRAISED VALUE WILL BE CLOSER TO $6 MILLION. THIS WOULD
GENERATE ABOUT $64,300 ANNUALLY IN TAX INCREMENT OR $257,300 OVER FOUR YEARS, HE WENT ON
TO NOTE BECAUSE OF THE APPROACHING SUNSET OF THE DDA TAX INCREMENT PROGRAM, IT IS BECOMING
INCREASINGLY DIFFICULT TO PARTICIPATE IN PROJECTS AT LEVELS COMPARABLE TO PAST YEARS BASED
PRIMARILY ON THE AMOUNT OF TAX INCREMENT BONO GENERATED, STAFF RECOMMENDS THE BOARD
CONSIDER PARTICIPATION IN THIS PROJECT AT $350,000,
ALAN STROPE AND COREY SEITZ, PROJECT DEVELOPERS, GAVE AN OVERVIEW OF WHAT IS BEING PROPOSED.
THEY FOCUSED ATTENTION ON THE HIGH QUALITY MATERIALS AND THE ENERGY SAYING FEATURES. MR. DAVE
EDWARDS, THE PROPERTY OWNER AND RESIDENTIAL DWELLER ADJACENT TO THE PROPOSAL, SUPPORTED THE
PROJECT, HE STATED THEY WILL BE EXCITED TO HAVE NEW NEIGHBORS AND HE SUPPORTS HIGHER DENSITY
RESIDENTIAL.
THERE WERE BOARD COMMENTS AND DISCUSSION ABOUT THE ASSESSED VALUE OF THE PROJECT AND THE TAX
INCREMENT THAT THE DDA MIGHT RECEIVE FROM THIS PROJECT.
MR, HEWITT MOVED TO COMMIT UP TO $350,000 TO THIS PROJECT, STATING IT IS COMPATIBLE WITH THE
NEIGHBORHOOD, AND IT IS A GOOD OUAUTY PROJECT. SECONDED BY MR, WOLF AND PASSED UNANIMOUSLY,
DDA BOARD MINUTES
PAGE 2
AUGUST 4, 2005
ARTS ALIVE MR.STEINER STATED MUCH OF THE DATA USED BY THE DDA AND THE CITY OVER THE PAST FEW YEARS
FUNDING REGARDING CULTURE AND THE ARTS IN FORT COLLINS HAS BEEN DRAWN FROM A SURVEY CONDUCTED BY
REQUEST AMERICANS FOR THE ARTS IN A 2001 SURVEY CALLED "ARTS AND ECONOMIC PROSPERITY." HE STATED
ARTS ALIVE HAS BEEN ASKED TO PARTICIPATE IN A FOLLOW-UP SURVEY THAT WILL UPDATE THE 2001 DATA
AND INCLUDE AN ECONOMETRIC INPUT/OUTPUT MODEL THAT IS CUSTOMIZED TO THE LOCAL ECONOMY. HE
STATED ARTS ALIVE IS ASKING THE DDA FOR $6.500 TO FUND THE STUDY AND WENT ON TO NOTE THE
STUDY DIRECTLY RELATES TO THE AUTHORITY'S EFFORTS TO ESTABLISH A DOWNTOWN CULTURAL
NEIGHBORHOOD. STAFF RECOMMENDS SUPPORTING THE REQUEST.
MS. JORDAN STATED SHE THOUGHT THE INFORMATION WOULD BE HELPFUL TO THE DDA.
MR. WOLFS MOVED TO AUTHORIZE UP TO $6,500 FOR THE ARTS ALIVE PROJECT. SECONDED BY MR.
SEARS AND PASSED UNANIMOUSLY.
NATIONAL MR. STEINER STATED DDA STAFF REQUESTED NDC TO SUBMIT A PROPOSAL TO WORK WITH THE DDA TO
DEVELOPMENT DEVELOP A COMPREHENSIVE PACKAOE OF FINANCIAL TOOLS AND THEN TO ALSO ASSIST IN THE
COUNCIL DEVELOPMENT OF SPECIFIC PROJECTS, THIS REQUEST DREW OUT OF TWO MEETINGS WITH THE CITY AND AT
CONTRACT THE LAST MEETING IT WAS SUGOESTEO THAT THE DDA TAKE THE LEAD ON THIS AND THEN DEPENDING ON THE
OUTCOME, THE PROGRAM MIGHT BE EXPANDED TO INVOLVE THE CITY. NDC IS A NON-PROFIT ORGANIZATION
THAT PROVIDES EDUCATIONAL, FINANCIAL, EQUITY AND LENDING SERVICES TO ITS CLIENTS,
THE PROPOSAL IS OUTLINED IN THE FOLLOWING SCOPE OF SERVICES
I . TO PROMOTE A VITAL ECONOMY IN WHICH DOWNTOWN CULTURAL AND BUSINESS INTERESTS HAVE
OPPORTUNITIES FOR GROWTH AND EXPANSION AND TO HELP ADVANCE THE VISION OF A DOWNTOWN
CULTURAL NEIGHBORHOOD BUILT UPON THE MODEL OF A YEAR-ROUND CHAUTAVOUA, THE DOWNTOWN
DEVELOPMENT AUTHORITY IS COORDINATND ITS RESOURCES TO SUPPORT SEVERAL CULTURAL AND
ECONOMIC DEVELOPMENT. PROJECTS. THE NATIONAL DEVELOPMENT COUNCIL (NDC) WILL PROVIDE
TECHNICAL ASSISTANCE TO THE DDA IN GRAFTING AND/OR EVALUATING BUSINESS MODELS FOR RUSLIC-
PRIVATE PARTNERSHIPS WITH THE INITIAL FOCUS BEING ON THE DEVELOPMENT OF A YEAR-ROUND
COMMUNITY (FARMER'S) MARKET AND CULINARY SCHOOL. SUCH ASSISTANCE WILL INCLUDE BUT IS NOT
LIMITED TO WORKING WITH THE CRY OF FORT COLLNS (THROUGH THE DDA) ON THE ESTABLISHMENT OF
A HOUSING AND URBAN DEVELOPMENT 108 LOAN PROGRAM (USING CDBG ENTITLEMENTS AS
"COLLATERAL"), PREPARATION OF AND SEEKING AN ALLOCATION FOR NEW MARKETS TAX CREDITS,
REVIEWING THE APPLICABILITY OF LOCAL, STATE AND FEDERAL FUNDING OPTIONS AVAILABLE FOR
DEVELOPMENT AND REDEVELOPMENT, ASSIST IN SEEKING SUCH FUNDS FROM LOCAL, STATE, AND
FEDERAL SOURCES (m.o. HUD BEDI GRANTS. SPECIAL CONGRESSIONAL GRANTS, FEDERAL TRANSIT
ADMINISTRA'RON GRANTS, EDA GRANTS, EPA BROWMFIELDS ORANTS, ECONOMIC DEVELOPMENT
PROGRAMS, COLORADO ENTERPRISE FUND, URBAN EMPOWERMENT ZONES, ENTERPRISE ZONES, ETC.),
DEVELOPING APPROPRIATE ORGANIZATIONAL STRUCTURES FOR PUBLIC -PRIVATE DEVELOPMENT
PARTNERSHIPS, ASSIST IN DEVELOPMENT OF REQUESTS FOR PROPOSALS AND REQUESTS FOR
OUALIFICATIONS, DEVELOPING FINANCIAL MODELS FOR DEVELOPMENT AND REDEVELOPMENT PROJECTS,
ASSIST WITH MARKETING AND SOLICITING DEVELOPER INTEREST IN DDA PROJECTS, ASSIST IN
STRUCTURING AND FINANCING PROJECTS BROUGHT TO THE DDA INCLUDING ANALYS15 OF APPLICABLE
TAX BENEMTS(CREDNS.
2. AS REQUESTED BY THE DDA, DEVELOP WORKING PAPERS IDENTIFYING POTENTIAL APPROACHES TO
SUPPORT PUBLIC AND PRIVATE DEVELOPMENT VENTURES. THESE CAN INCLUDE EXAMPLES OF PROJECTS
FROM OTHER COMMUNITIES, PUBLIC DEVELOPMENT INSTITUTIONS IN THOSE COMMUNITIES, PUBLIC
POLICIES ACHIEVED, AND DEVELOPMENT OF FINANCE SUMMARIES.
3. DEVELOP MATERIALS FOR REVIEW AND DISCUSSION WITH OTHER PUBLIC ENTITIES
4. UNDER CERTAIN CONDITIONS, NDC MAY PROVIDE FINANCING AND DEVELOPMENT ASSISTANCE THROUGH
ITS NON-PROFIT DEVELOPMENT AFFILIATE, NDC HOUSING AND ECONOMIC DEVELOPMENT CORPORATION
(HEDC) AND ITS ECONOMIC DEVELOPMENT BANK, GROW AMERICA FUND (GAF). HEDC CAN ACT AS A NON-
PROFIT SPONSOR/DEVELOPER FOR CERTAIN AFFORDABLE HOUSING, PUBLIC PURPOSE AND ECONOMIC
DEVELOPMENT PROJECTS OR PROVIDE INVESTMENT SERVICES THROUGH ITS NEW MARKETS TAX CREDIT
AFFILIATE. IT CAN ALSO PROVIDE SMALL BUSINESS LOANS FOR PUBLIC ENTITIES PARTICIPATING IN GAF
AND/OR INVESTING WITH NEW MARKETS TAX CREDITS.
5. AS DIRECTED BY THE DDA. NDC WILL WORK ON SPECIFIC PROJECTS SUCH AS THE DEVELOPMENT OF A
COMMUNITY MARKET AND CULINARY SCHOOL.
DDA BOARD MINUTES
PAGE 3
AUGUST 4, 2005
MR. STEINER STATED THE COST FOR NDC SERVICES IS FIXED AT $72,000 ANNUALLY ALTHOUGH THE
AUTHORITY MAY OUALIFY FOR A GRANTREBATE OF $24.000. STAFF STRONGLY RECOMMENDS
CONTRACTING WITH NCD. IF THE AUTHORITY 15 NOT PLEASED WITH THE RESULTS. THE CONTRACT CAN Be
TERMINATED AT ANY TIME. BECAUSE THERE IS A PRESSING DEADLINE FOR NEW MARKETS TAX CREDITS
APPLICATIONS. STAFF IS ALSO ASKING THAT THE BOARD ACT AT ITS AUGUST MEETING AND DIRECT LEGAL
COUNSEL TO WORK WITH NDC ON REQUIRED CONTRACT DOCUMENTS.
MS. KAREN GARRISON, NDC STAFF, GAVE AN OVERVIEW OF THE NATIONAL DEVELOPMENT COUNCIL. THE
BOARD DISCUSSED THE RELATIONSHIP, THE DIFFERENT SERVICES OFFERED, PROJECT FINANCING AND
THE DIFFERENT FINANCING TOOLS.
MR. STEINER STATED HE THOUGHT THIS SHOULD HAVE BEEN DONE A LONG TIME AGO. WHAT NDC BRINGS TO
THE TABLE COULD BE USED REGARDLESS OF OUR OWN INTERNAL OBJECTYES. HE STATED HE ALSO THINKS IT
CAN BE USED EXTENSIVELY BY THE CITY. THE CITY HAS EXPERTISE IN A NUMBER OF AREAS, BUT HE STATED
HE DIDN'T THINK IT HAS THE COMPREHENSIVE PACKAGE THAT NDC BRINGS.
THE BOARD DISCUSSED TOOLS AVAILABLE AND THE BENEFIT OF THE TIMING OF DOING THIS NOW. AND ALSO
HOW THE ALLOCATION OF MONEY WORKS AND THE PROJECTS THAT MIGHT BE IN THE PIPELINE MR THE
FUTURE,
MR. WOLFE MOVED THAT THE DDA CONTRACT WITH NDC FOR THE SCOPE OF SERVICES OUTLINED IN STAFF's
MEMO (SEE ABOVE) WITH THE CONDITION THAT THE FINAL AGREEMENT BE WORKED OUT WITH THE ODA'S
LEGAL COUNSEL. SECONDED BY KURT KASTEIN AND PASSED UNANIMOUSLY,
MR. KASTEIN STATED AT NEXT MONTH'S MEETNO HE WOULD LIKE TO SEE THE INITIAL PROJECTS IN THE
PIPELINE,
MR. HEWITT STATED HE THOUGHT WE SHOULD SPEND SOME TIME AT THE NOVEMBER RETREAT EVALUATINO
THIS RELATIONSHIP.
URBAN RENEWAL MR, ATTEBERRRY STATED THAT THE CITY IS GOING THROUGH A NEW BUDGETING PROCESS AND THEY ARE
AUTHORITY LOOKING AT SERVICES THAT THEY CAN POTENTIALLY STOP DOING. IN LIGHT OF DECLINING REVENUES, THEY
ARE RETHINKING THE ENTIRE MODEL AND THAT INCLUDES HOW THEY PARTNER WITH OTHER ENTITIES.
MR, ATTEBERRY STATED IN DECEMBER THE COUNCIL CREATED AN URBAN RENEWAL AUTHORITY ON NORTH
COLLEGE AND THEY ARE NOW TRYING TO FIGURE OUT HOW TO BEST STAFF T. HE WENT ON TO STATE THE
REASON HE WAS CONING TO THE DDA BOARD IS SIMPLY BECAUSE THE CITY HAS A LOT OF FAITH IN THE
WORK THAT MR. STEINER HAS DONE WITH THE DDA. HE WENT ON TO NOTE AS THE CITY IS LOOKING AT NEW
PARTNERSHIPS, ONE OF THE THINGS THAT THEY HAVE WANTED TO PURSUE IS POSSIBLY PARTNERING WITH
MR. STEINER TO SERVE AS AN EXECUTIVE DIRECTOR FOR THE NORTH COLLEGE URBAN RENEWAL
AUTHORITY. HE STATED THE CITY OUGHT TO TAP INTO A RESOURCE THAT WE ALREADY HAVE. HE STATED HE
WAS LOOKING AT ALL OPTIONS AND WANTED TO BRAINSTORM AND TALK WITH THE DDA BOARD ABOUT
EXPLORING THIS IDEA.
JACK WOLFS COMMENTS THAT HE WOULD NOT BE IN FAVOR OF IT BECAUSE THE DDA HAS 50 MUCH ON ITS
PLATE WITH RESPONSIBILITIES NOW. HE STATED HE WOULD HAVE TO THINK LONG AND HARD ABOUT
TRYING TO EXTEND THE EXECUTIVE DIRECTOR'S RESPONSIBILITIES BEYOND WHAT IS TRYING TO BE
ACCOMPLISHED IN THE DOWNTOWN. HE STATED ME UNDERSTANDS THE IMPORTANCE OF NORTH COLLEGE; IN
TERMS OF DEDICATING ADDITIONAL RESOURCES, IT IS GOING TO HAVE TO COME FROM SOMEWHERE ELSE.
MR. $MINER STATED HE WAS FLATTERED BY THE REQUEST, BUT IT 15 THE BOARD'S CALL. HE STATED HE
HAS OFFERED TO MR. ATTEBERRY THAT HE COULD BE A RESOURCE TO THE CITY.
MS, JORDAN STATED OUR DIRECTION TO YOU IS THAT WE HAVE NOT CLOSED THE DOOR AND WE
WILL BE TMELY IN OUR RESPONSE TO YOU. IT IS A GOOD EXECUTIVE SESSION TO►IC, WE WOULD ALL BE
BEST SERVED BY NARROWING THE DISCUSSION TO A FEW PEOPLE AND THEN GETTING BACK TO YOU. IT
DESERVES CONSIDERATION AND IT IS A GOOD "OUT OF THE BOX" POTENTIAL STRATEGY THAT DESERVES SOME
0000 THOUGHT PROCESS.
DDA BOARD MINUTES
PAGE 4
AUGUST 4, 2005
BOND RECOM- MR, STEINER REFERRED TO THE PACKET MEMO OUTLINING THE BOND RECOMMENDATION TO CITY
MENDNATON COUNCIL. HE PRESENTED RESOLUTION 2005-06 AND NOTED A COUPLE OF CHANGES.
I ). IN THE FOURTH LINE OF THE HEADING THE WORDS "FUNDS THEREFROM" BE DELETED.
2) THE LAST WHEREAS Be DELETED.
WITH THOSE CHANGES, MR. STEINER REQUESTED BOARD APPROVAL OF RESOLUTION 2005-06.
MR, SEARS MOVED TO APPROVE RESOLUTION 2005-06. SECONDED BY MR. HEWITT AND PASSED
UNANIMOUSLY.
UPDATES MR. STEINER PROVIDED A MEMO OF UPDATES TO THE BOARD. HE ALSO DISTRIBUTED THE LATEST
CITY SALES AND USE TA% SUMMARY, THERE WERE COMMENTS FROM BOARDMEMSERS ABOUT THE
POSITIVE SALES TAX NUMBERS FOR THE DOWNTOWN AREA. .
OTHER MS. GULA ANNOUNCED THAT MARY BPAYT WS RECEPTION WAS SCHEDULED FOR AUGUST 1 7,
BUSINESS 2005 AT ENLIO'S FROM 5:30 — 7:30 P.M.
ADJOURN THERE BEING NO FURTHER BUSINESS, THE MEETING ADJOURNED 9:00 P.M,