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HomeMy WebLinkAboutDowntown Development Authority - Minutes - 03/02/2006DOWNTOWN DEVELOPMENT AUTHORTTY REGULAR DIRECTORS' MEETING STEVE TAYLOR, CHAIR 22I-0524 (W) (CURT KASTEIN, COUNCIL LIAISON 223-0425 (W) LINDA GuLA, STAFF LIAISON 484-2020 (W) MINUTES of MARON 2, POOS REGULAR MEETING THE BOARD OF DIRECTORS OF THE DOWNTOWN DEVELOPMENT AUTHORITY NET IN REGULAR SESSION AT 7:30 A.M. ON MARCH 21 2006 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. SECRETARYITREASURER GEORGE BRELIG MCCASE CALLAHAN Kim JORDAN KURT KABTEIN BILL SEARS PATTY SPENCER STAFF ROBERT STEINER, EXECUTIVE DIRECTOR MATT ROSENALT. DDA PROJECT MANAGER LUCIA LILEY, COUNSEL LINDA GULA GUESTS CITY MANAGER DARIN ATEBERRY. CITY FINANCE DIRECTOR CHUCK SEEBT, ALTERNATE COUNCIL LIAISON TO THE DDA, KAREN WETTKUNAT, KATHY CARDONA, DAVID SHORT, MIKE JENSEN, LORIN UNTERBERGER, JOHN COVALL, DAN RODNER. CALL TO ORDER MR. TAYLOR CALLED THE MEETING TO ORDER AT 7:35 A.M. ROLL CALL WAS TAKEN. APPROVAL OF MINUTES MR. WOLFE MOVED TO APPROVE THE MINUTES OF JANUARY 5, 2005. SECONDED BY MR. HEWITT AND PASSED UNANIMOUSLY. MR. TAYLOR INTRODUCED AND WELCOMED MATT ROBENALT. THE NEW PROJECT MANAGER FOR THE DDA. PENNY FLATS MR. STEINER REFERRED TO THE PACKET INFORMATION STATING THAT THIS DEVELOPMENT IS BEING PROPOSED ON BLOCK 33 (THE TROLLEY BARN BLOCK). HE STATED THIS PROJECT IS TO BE BUILT ON A BLOCK THAT WAS OWNED BY THE CITY AND IS ABOUT 90 PERCENT RESIDENTIAL (1 47 UNITS) WITH THE REST BEING COMMERCIAL TO BE BUILT IN FOUR PHASES. HE STATED STAFF RECOMMENDS THE BOARD APPROVE PARTICIPATION OF $9 10,000 TO A MAXIMUM OF $ 1, 187,000 DEPENDING ON AN ACCEPTABLE RECONCILIATION OF TAX INCREMENT CALCULATIONS AND SUBJECT TO THE DEVELOPER'S ACCEPTANCE OF THREE ANNUAL PAYMENTS FOR PHASE ONE, TWO ANNUAL PAYMENTS FOR PHASE 2. AND ONE PAYMENT FOR PHASE THREE, MR. STEINER EXPRESSED CONCERNS ABOUT DOING A ONE TIME BORROWING OF $ 1. 18 MILLION PARTICULARLY BECAUSE OF THE DDA SUNSET, HE STATED THERE WOULD BE NO GUARANTEE THAT EACH OF THE PHASES WOULD OCCUR ON THE TIMETABLE AND IF THEY DID NOT, THE DDA WOULD NOT SEE THE INCREMENT COMING IN FROM THE SUBSEQUENT PHASES, AND CONSEOUENTLY THAT WOULD MEIN THE DDA WOULD HAVE THE DEBT OBLIGATION WITHOUT THE REVENUE. HE ASKED THAT THE BOARD ALLOW COBURN COMPANY AND THE DDA STAFF TO RECONCILE TIRE DIFFERENCE IN INCREMENT NUMBERS. AT 7:55 A.M. BOTH COUNCILMEMBER KASTEIN AND COUNCILMEMBER WEITKUNAT RECUSED THEMSELVES FROM PARTICIPATION ON THIS ITEM AMC LEFT THE ROOM FOR THE DURATION OF THE PRESENTATION, MR. ATTEBERRY STATED IT WAS NOT ADVISABLE TO HAVE CITY COUNCIL PARTICIPATE ON CONSIDERATION OF THE ITEM BECAUSE OF THE APPEARANCE OF IMPROPRIETY, DDA BOARD MINUTES PAGE 2 MARCH 2, 2006 MR. JOHN COVALL AND MR. CAN RODNER FROM COBURN COMPANY (THE APPLICANT) PRESENTED AN OVERVIEW OF THE PROJECT AND WERE AVAILABLE TO ANSWER OUE9TONS. THEY HIGHLIGHTED: THE PROJECT AS COMMERCIAL AND RESIDENTIAL DEVELOPMENT DEMAND IN SMALLER UNITS CONCEALED PARKING AND POSSIBLE PARKING CONCERNS STREETWAYS AND PEDESTRIAN WAYS THE PHASING OF THE PROJECT QUESTIONS FROM THE BOARD FOCUSED ON PARKING, PEDESTRIAN WAYS, STORM DRAIN OUTFALL, ENERGY EFFICIENCY AND THE USE OF GREEN BUILDING MATERIALS. THERE WERE CONCERNS EXPRESSED ABOUT THE RESIDENTIAL ABSORPTION RATES IN THE DOWNTOWN AREA AND ALSO CONCERNS ABOUT THE PHASING IF IT DOES NOT 00 AS WELL AS EXPECTED. MR, WOLFS MOVED TO PARTICIPATE IN THE AMOUNT OF $9 10.000 TO A MAXIMUM OF $'I , 1 87,000 DEPENDING ON AN ACCEPTABLE RECONCILIATION OF TAX INCREMENT CALCULATIONS AND SUBJECT TO THE DEVELOPER'S ACCEPTANCE OF THREE ANNUAL PAYMENTS FOR PHASE ONE, TWO ANNUAL PAYMENTS FOR PHASE TWO AND ONE PAYMENT FOR PHASE THREE. SECONDED BY MS. JORDAN AND PASSED 8-0. (MR. KASTEIN RECUSED.) MR. STEINER STATED OUTDOOR LIVING EXPERIENCE HAS MADE A PROPOSAL TO THE CRY TO REDESIGN THE COLLEGE AVENUE MEDIANS AT THE INTERSECTIONS OF MOUNTAIN AND LAPORTE AVENUES. THE DESIGN INCLUDES WATER ELEMENTS. HE STATED THE COMPANY 19 PROPOSING TO DESIGN, CONSTRUCT, AND MAINTAIN THESE IMPROVEMENTS AT NO COST TO THE CT'. HE WENT ON TO NOTE THE DDA 19 BEING ASKED TO ASSIST IN THE RELOCATION OF AN ELECTRICAL BOX IN THE SOUTH PLANTER OF THE COLLEGE/MOUNTAIN INTERSECTION AT AN ESTIMATED COST OF $2,227. MR. STEINER STATED STAFF SUPPORTS THE REOUE9T CONTINGENT UPON THE EXECUTION OF A CONTRACT BETWEEN OUTDOOR LIVING EXPERIENCE AND THE CITY THAT CONTROLS DESIGN AND MAINTENANCE AND THAT SPECIFICALLY EXCLUDES THE DDA FROM ANY OBLIGATIONS WITH REGARD TO THE RELOCATION OF THE ELECTRICAL BOX. MR. LORIN UNTERBERGER WITH OUTDOOR LIVING EXPERIENCE WAS AVAILABLE TO ANSWER OUE9TION3. He OUTLINED THE PROJECT AND DESCRIBED THE WATER FEATURES BEING PROPOSED. BOARD OUESTIONS FOCUSED ON WHERE THE ELECTRICAL BOX WOULO BE RELOCATED; WHETHER THE CHANGE IN LOCATION WOULD INTERFERE WITH HOLIDAY LIGMTNO; AND WHAT THE PROJECT WOULD LOOK LIKE MS. JORDAN MOVED TO APPROVE FUNDING NOT TO EXCEED $2300 CONTINGENT UPON THE EXECUTION OF A CONTRACT BETWEEN OUTDOOR LIVING EXPERIENCE AND THE CITY THAT CONTROLS DESIGN AND MAINTENANCE AND THAT SPECIFICALLY EXCLUDES THE DDA FROM ANY OBLIGATIONS WITH REGARD TO THE RELOCATION OF THE ELECTRICAL BOX. LEGAL FEES MR. STEINER STATED AT THE RETREAT LAST NOVEMSER,.THE BOARD DISCUSSED THE IDEA OF CHARGING LEGAL FEES BACK TO PROJECTS IN WHICH THE DDA WAS INVESTING. HE REVIEWED THE FOLLOWING SUGGESTIONS INCLUDED IN THE PACKET MATERIAL ALL WITH THE OUALIFIER THAT CHARGES "NOT TO EXCEED ACTUAL LEGAL FEES:" I . FOR SIMPLE FACADE EASEMENTS ON COMMERCIAL PROPERTY, TWO PERCENT OF THE DDA INVESTMENT. 2. FOR SIMPLE FACADE EASEMENTS PLUS RIGHT-OF-WAY IMPROVEMENTS, 2,4 PERCENT OF THE DDA INVESTMENT, 3. FOR FACADE EASEMENTS ON RESIDENTIAL BUILDINGS WHERE LEGAL DOCUMENTS MUST ADDRESS CONDOMINIUM ASSOCIATION ISSUES, 3 PERCENT OF THE DDA INVESTMENT, 4. FOR FACADE EASEMENTS ON RESIDENTIAL BUILDINGS PLUS R(GHT-OF�WAY IMPROVEMENTS, 3.5 PERCENT OF THE DDA INVESTMENT. S. FOR PUBLIC WORKS PROJECTS (SUCH AS BUILDING A PARKING GARAGE), 3 PERCENT OF THE DDA INVESTMENT. THIS EXPENSE WOULD BE ADDED AS A COST OF ISSUANCE TO THE SALE OF BONDS AND THE PROCEEDS WOULD DO BACK TO THE AUTHORITY'S ADMINISTRATIVE FUND. 6. FOR REQUESTS FROM OTHER PUBLIC AGENCIES FOR DDA FUNDING OF NON -CAPITAL PUBLIC WORKS PROJECTS (STUDIES), FIVE PERCENT OF THE DDA INVESTMENT. ALL OTHER LEGAL EXPENSES SUCH AS DRAFTING/REVIEWING INTERGOVERNMENTAL AGREEMENTS, REVIEWING LEGAL DOCUMENTS, AND DRAFTING DOCUMENTS SOLELY FOR THE AUTHORITY WOULD BE DRAWN FROM THE ADMINISTRATIVE BUDGET. DDA BOARD MINUTES PAGE 3 MARCH 2, 2006 MS. LILEY STATED THAT THE MORE COMPLEX DOCUMENTS NEEDED FOR RESIDENTIAL PROJECTS AND THE ADDITIONAL TIME AND EFFORT NEEDED TO PROCESS THE DOCUMENTS WAS DRIVING THIS ISSUE. SHE STATED SHE WAS COMFORTABLE WITH WHAT WAS PROPOSED AND SUGGESTED RE-EVALUATING THIS ISSUE IN SIX MONTHS OR A YEAR. SHE NOTED IN EVERY SITUATION THE DDA WOULD COME CLOSE WITH THE PERCENTAGES IN RECOVERING LEGAL COSTS AND THAT THE DDA WOULD NEVER RECOVER MORE THAN THE ACTUAL COSTS. MR. HEWITT MOVED TO ADOPT THE LEGAL FEES AS OUTLINED ABOVE EFFECTIVE IMMEDIATELY. SECONDED BY MR. WOLFE AND PASSED UNANIMOUSLY. MS. PATTY SPENCER RECUSED HERSELF FROM PARTICIPATION ON THIS ITEM MR. STEINER REFERRED TO PACKET INFORMATION ON THIS ITEM AND STATED THE PROJECT IS LOCATED IN THE BLOCK NORTH OF COLORADO STATE UNIVERSITY ON COLLEGE AVENUE. THE AREA IS A MIXTURE OF OLDER BUILDINGS — MOSTLY COLLEGE DIRECTED BUSINESSES AND RESTAURANTS. HE WENT ON TO NOTE THE BUILDING IS BEING RENOVATED FOR ABOUT $57,000 AND SUGGESTED INVESTING THE FULL 1 0% WHICH WOULD BE $5700 TO BUY FASADE EASEMENTS, MS. TRICIA DIEHL ,THE OWNER/DEVELOPER OF THE PROJECT, REFERRED TO PHOTOS IN THE PACKET INFORMATION AND STATED SHE THOUGHT THIS IS A 0000 BLOCK TO START PULLING SOME OF THE DOWNTOWN ELEMENTS INTO THE AREA, SHE NOTED THAT TENANT INTEREST HAS BEEN PRIMARILY FROM RESTAURANTS. BOARD DISCUSSION FOCUSED ON HOW THE AREA WILL LIKELY BE REDEVELOPED OVER THE NEXT FEW YEARS AND THERE WAS GENERAL SUPPORT FROM BOARDMEMSERS EXPRESSING ENCOURAGEMENT THAT THIS PROJECT MIGHT HELP SPUR FURTHER DEVELOPMENT THAT AREA. MR. WOLFE MOVED TO SUPPORT THE 622 SOUTH COLLEGE PROJECT UP TO $5700 BASED ON THE INCREMENT. SECONDED BY MR. HEWITT AND PASSED 8-0 (MS. SPENCER RECUSED). NAMONAL DEVELOPMENT COUNCIL PROJECr UPDATE _ POSTPONED UNTIL APRIL. TASTE OF PHI LLY - POSTPONED UNTIL APRIL UPDATE ON cuLnJRAL COMMrrrEE_ MR. STEINER STATED THE CULTURAL COMMITTEE AND CITY ARE IN THE PROCESS OF PREPARING A SCOPE OF SERVICES TO MIRE A HEAD HUNTER TO PURSUE HIRING AN EXECUTIVE DIRECTOR, BUDGET RESOLUTION MR. STEINER STATED THE DDA BOARD AND CITY COUNCIL APPROVED $560,000 IN THE 2006 BUDGET FOR THE CULTURAL PROGRAM. HE NOTED WHEN THE DDA WAS CREATED IN 1 981 , THE BALLOT LANGUAGE SPECIFIED THAT PROCEEDS GENERATED FROM TAX INCREMENT FINANCING COULD ONLY BE EXPENDED ON CAPITAL ACTIVITIES, THE STATE OF COLORADO STATUTES GOVERNING DOWNTOWN DEVELOPMENT AUTHORITIES ALLOW FOR GREATER USAGE OF THE PROCEEDS FROM TAX INCREMENT FINANCING MR). STATE STATUTE INCLUDES PROGRAMS THAT ENHANCE ECONOMIC VITALITY AS AN ALLOWABLE EXPENDITURE OF TIF FINANCING. IN NOVEMBER, THE DDA WILL PLACE A BALLOT OUESTION BEFORE THE PROPERTY OWNERS WITHIN THE DDA'S BOUNDARIES THAT WILL SEEK TO UPDATE LANGUAGE FOR THE USAGE OF TIF PROCEEDS TO BE CONSISTENT WITH WHAT STATE STATUTE ALLOWS. SINCE THIS BALLOT ISSUE WILL NOT BE PRESENTED UNTIL NOVEMBER, THE DDA DESIRE$ TO EXCHANGE ITS BOND PROCEEDS FOR CAPITAL PROJECTS IN THE AMOUNT OF $550.000 WITH APPROPRIATIONS FROM THE CITY THAT COULD Be UTILIZED FOR INITATNG THE DDA CULTURAL PROGRAM. MR. STEINER STATED HE NEEDED A MOTION FROM THE BOARD APPROVING THIS TRANSACTION, MR. KASTEIN MOVED TO APPROVE A DDA RESOLUTION TO BE SIGNED BY THE DDA BOARD CHAIR RECOMMENDING TO CITY COUNCIL THE EXCHANGE OF FUNDING IN THE AMOUNT OF $560,000 FOR THE PURPOSE OF BEING ABLE TO SPEND MONIES ON THE CULTURAL PROGRAM AND AUTHORIZE THE CHAIR TO ENTER INTO AN INTERGOVERNMENTAL AGREEMENT WITH THE CITY TO CARRY THIS OUT, SECONDED BY MR. SEARS AND PASSED UNANIMOUSLY. SALES TAX UPDATE - MR. CHUCK SKEET, CITY FINANCE DIRECTOR, SHARED MFORMATON ON DOWNTOWN CITY SALES TAX COLLECTIONS AND PROVIDED HANDOUTS WITH A FIVE YEAR COMPARISON OF DATA. ICE RINK — MR, DARIN ATTEBERRY REPORTED THAT THE DOWNTOWN ICE RINK WOULD BE CLOSING AS OF FEBRUARY 26, 2005, HE STATED THE TOTAL NUMBER OF SKATER VISITS WAS 6,226, DDA BOARD MINUTES PAGE 4 MARCH 2, 2008 HOLIDAY SEASON - MS. JORDAN SUOOESTED PLANNING NEEDS TO START NOW FOR NEXT YEAR'S HOLIDAY SEASON AND THE MAJOR UPORADES NEEDED FOR DOWNTOWN DECORATIONS AND LIGHTING. NGRTHSIDE COMMUNm CENTER - MR. SEARS REQUESTED A PROJECT UPDATE ON NORTHSIDE COMMUNITY CENTER FOR A FUTURE MEETINO. ADJOURN THERE BEING NO FURTHER BUSINESS, THE MEETING ADJOURNED 9:05 A.M. CAREY HEWIV, SECRETA Y