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HomeMy WebLinkAboutDowntown Development Authority - Minutes - 09/05/1996ddoDOWNTOWN 0 DEVELOPMENT AUTHORITY ONE WEST CONTEMPORARY ART CENTER Telephone (970) 484-2020 201 SOUTH COLLEGE AVENUE, FORT COLLINS, CO 80524 Telefax (970) 484-2069 DOWNTOWN DEVELOPMENT ADTRORITY Regular Directors, meeting MINUTES OF SEPTEMBER 5, 1996 REGULAR MEETING The Board of Directors of the Downtown Development Authority met in regular session at 7:30 a.m., September 5, 1996 in the conference room at 201 South College Avenue, One West Contemporary Art Center. PRESENT There were present: Stephen Slezak, Chair presiding Bonnie Bixler Szidon, Vice Chair Mary Brayton, Secretary Carey Hewitt, Treasurer Chuck Wanner Bill Attwooll Greg Belcher Jason Meadors Lucia Liley, Counsel Absent: Kermit Allard Bud Frick, LPC Liaison Staff: Chip Steiner, Consultant Anne Garrison Guests: Brad Page, John Fischbach, Jim Wurtz, Chris Ticnor, Dan MacArthur CALL TO ORDER Mr. Slezak called the meeting to order, and entertained a motion to approve the minutes of August 1, 1996. Mr. Hewitt moved to approve the minutes as written, seconded by Mr. Meadors and the motion carried unanimously. COOPERSMITH'S Brad Page distributed a diagram outlining a rectangular SILO silo. Landmark Preservation Commission, (LPC) like DDA is seeking other options. DDA MINUTES PAGE 2 Of those presented, LPC prefers the wider silo, painted Old Town green with Old Town Square and Coopersmith's logos affixed. The Board's discussion and lengthy questioning denoted a degree of reservation. The following concerns and observations were voiced: • Size of silo dominates due to height of building • Is there a combustible factor? • Spillage might encourage a rodent problem • Feasibility of placing silo inside the building • How do immediate neighbors view this addition? Ms. Liley counseled that because we are dealing with public land we should not approach this as a sale or rental, but rather in terms of a revokable license. In such instances, the statute permits the charging of a 'fair rate.' In the agreement, consideration would be given to maintenance issues, and the removal of the silo at the end of the term. Research will be needed to determine a fair value, and it is possible to prepare the license for a five to ten year term, with some automatic provisions to revoke with six months notice. Mr. Hewitt moved to approve the wider, green structure, with provisions as outlined by Counsel, and a satisfactory agreement as to license fee. Mr. Wanner seconded the motion, with the addition that the license should be tied tc Coopersmith's lease, so as one is concluded so is the other. LPC is scheduled to consider this design formally on September 10, 1996. The Board stated that should LPC's design approval result in major changes, Mr. Page must revisit the DDA Board. In the ensuing vote the motion carried 4-3 in favor of the project. FRIENDS OF LEE In a brief overview, Mr. Steiner encapsulated the history of MARTINEZ PARR this strip of land approximately twelve acres in size, situated on the southwest side of Lee Martinez Park and currently owned by Trillium Corporation. While it would seem DDA's position is clear in that residential development is critical to the success of the central business district, it is only fair to allow this delegation from the Friends of Lee Martinez Park (a separate entity from the Neighborhood Association) a hearing. Mr. Wurtz and others are searching for an equitable way to address the development of this property which is home to many events, and also represents some personal space ."a park still within the sounds of the city." A $15,000 donation has already been received, but whether or not raising a further $500,000 is viable is not known. If purchased by this group, the land would be turned over to the City for additional park land, and in order that it may be adequately maintained. Another option is to ask Trillium for more time, possibly six months, in order to draw up plans which are acceptable to the neighborhood and enable a developer to purchase with confidence and the support of the neighborhood. DDA MINUTES PAGE 3 Comments as follows were mixed: • Open to the residential development of the property if it is done with sensitivity • Too many hurdles might prevent a sincere developer from realizing a reasonable return on his investment • Feasibility of the Board doing some planning in partnership with the neighborhood • Concern that the asking price requires a certain density in order to realize a satisfactory investment return • The Board is sensitive to the 'neighborhood's' efforts and willing to assist insofar as it is meet for DDA to do so • The Board should signal Trillium that DDA is a player and hopefully our role would be to facilitate all sides rather than impede Mr. Steiner sought direction from the Board, specifically if the DDA is interested in doing some planning work on the site in partnership with the 'Neighborhood.' This might involve a financial obligation in identifying and paying a site planner in order to develop a plan which is saleable at the end of the six month period. Mr. Wurtz clarified the 'Neighborhood's' position by saying that their preference was to retain the site as part of the park, but this did not preclude the alternative of a grid site plan. Mr. Hewitt suggested we approach it from both sides; create a plan and look into the park option. Mr. Belcher proposed approaching the owners and asking them to make a donation by reducing the value of the property, which would give them a tax benefit in terms of capital gains liability. Mr. Wanner feels consideration should be given to a project such as this. If we are willing to expend $8,000 - $10,000 on a facade, surely this project warrants as much interest. Mr. Slezak offered that if Trillium, the 'Neighborhood' and DDA each underwrite one third of the planning costs, we could come up with something acceptable to all parties. Ms. Liley interjected to point out that this idea may not work from a developer's standpoint. No developer is going to accept a PUD they have not been involved in, and will want their lead architect to come in and work out all the considerations, of which we are unaware. The better way might be to require the developer to come in and take the lead role, then whatever monies DDA contributes would be spent getting a planner to review the plans and suggest revisions as needed from a DDA standpoint. Thus the developer would put in the time and bear the larger financial burden, and DDA could feed comments and suggestions from itself and the 'Neighborhood' to the lead person. Mr. Steiner and Mr. Meadors' comments indicated that while the DDA and the 'Neighborhood' should not simply react, neither could they dictate, but rather its role needs to be proactive. DDA MINUTES PAGE 4 In answer to Ms. Brayton's request for clarification, Counsel replied that we cannot legally require DDA's participation, but from a practical standpoint, it makes sense for a developer to want to come to some sort of meeting of the minds with the major players in order to have something viable at the end. Mr. Steiner then offered to contact the agent to discuss some of these points. At this juncture, Ms. Ticnor and Mr. Wurtz indicated a need to hear from the Board today that it supports the process suggested, so that in terms of Trillium, they can signal that entities such as DDA have been contacted and that should a purchase not be possible, the requested six months will not be a delay, but a productive outcome for all. Mr. Wanner then offered that within certain constraints, the Board would be interested in supporting, and contributing money toward such a process. If the other three players see fit to participate, i.e. the City, Trillium and the 'Neighborhood', then we should not put money on the table today, but rather indicate our intent that within certain parameters, we would like to become involved. Upon being asked for a motion, Mr. Wanner moved that DDA write a resolution or letter of intent saying the Board would like to indicate our interest in this piece of property which is deemed crucial to downtown and the Civic Center. That the Board sees this as important and in the beat interests of all parties to act cooperatively, in pursuing this in some sort of creative fashion in the next few months. We further Invite the owner, the City and the 'Neighborhood' to participate with us. Mr. Hewitt seconded the motion, and the vote was in favor with the exception of Mr. Attwooll who was opposed. COURTHOUSE Resolution 96-6 endorsing the Development of the Larimer RESOLUTION County Judicial Center on Block #31 was brought before the Board. Ms. Brayton made a motion to approve, with one change. This resolution was passed and adopted during a regular meeting instead of a special meeting of the Board. Mr. Wanner seconded the motion as amended and the Board was in favor with the exception of Ms. Szidon who was opposed. 185 N COLLEGE Ms. Liley reported that the property known as 185 North College Avenue closed on August 28, 1996. Zachary Wilson is the new owner having bought out Mr. Serafim Sofias. HISTORIC F.C. Ms. Szidon encouraged all who were able to attend a three DEVELOPMENT day workshop on Preservation. It will be held on October 1, CORPORATION 2 and 3, at the Linden Hotel. One of the focuses will be the Northern Hotel and the cost is $75.00. CONFERENCE ROOM The third floor tenant of One West Art Center will soon be moving to the Plaza level, so once again the conference room must be relocated. One West Art Center has no money to fund setting up a functional, more attractive conference room which would provide the proper business setting for meetings. Mr. Steiner suggested an option might be for the DDA to fund the monies needed, and then reduce the payment of the office lease until the monies were paid back. DDA MINUTES PAGE 5 Ms. Brayton moved to direct Mr. Steiner to locate a permanent site for the Conference Room and to authorize him to negotiate as he sees fit. She further stated that DBA should be included as a contributor in this venture. She asked that he return to the Board accordingly with a proposal. Ms. Szidon seconded the motion and the Board voted in favor with the exception of Mr. Slezak who was opposed. BOARD RETREAT The Board requested Ms. Garrison to pursue setting up a retreat at a time acceptable to Board members, possibly in the month of October. ADJOURN There being no further business, the meeting adjourned at 9:45 a.m. Mary Brayton, Secretary DOWNTOWN 0 DEVELOPMENT AUTHORITY ONE WEST CONTEMPORARY ART CENTER 201 SOUTH COLLEGE AVENUE, FORT COLLINS, CO 80524 TO: DDA Board of Director FROM: Chip Steiner DATE: September 27, 1996 RE: 1997 Budget Items 4 1. Ooerating Budget. Telephone (303) 484-2020 Telefax (303) 484-2069 Most of the proposed line items in the 1997 budget reflect modest adjustments to the 1996 budget. A 3.5 percent cost of living increase for full time staff is included in personal services. The Board can adjust and modify the budget as it wishes. It needs to make some specific decisions in the capital outlay fund. The original 1996 capital outlay fund had $90,922 in it. Through a re -appropriation in January, this was increased to $129,922 to accommodate projects the DDA had committed to but had not paid for in 1995 and for a one-time pass -through of an enterprise donation. To arrive at a potential capital outlay fund number please read through the following sequence: Beginning 1996 Balance $129,922 Less paid projects in 1996: Harmony Mill (40,000) Bristol Floral ( 8,500) Wall Mural ( 2,000) $ 79,422 Less 1996 Commitments: 200 Walnut Street (25,000) 350 Linden Street -(10,000) $ 44,422 Less projects committed to in 1995 and paid for in 1996: One -West facade ( 61000) Lindens (bourbon Street) ( 1.000) $ 36,822 Less remaining 1995 commitments: ADI (Old Senior Center) ( 7,000) Cozzola's (20,000) $ 9,822 1997 DOWNTOWN DEVELOPMENT AUTHORITY BUDGET PROJECTION Budgeted Estimated Projected 1996 1996 1997 PERSONAL SERVICES Salaries 25,875 26,325 27,247 Employees Group Life Ins. 145 100 100 Unemployment Compensation 155 125 150 Employee Group Health Ins. 4,275 3,500 4,000 Social Security (FICA) 360 450 500 ICMA 2,380 2,500 2,750 Dental Insurance 0 125 150 Long -Term Disability 310 125 150 Workers Compensation 232 100 125 Termination Pay 0 0 0 33,732 33,350 35,172 CONTRACTUAL SERVICES Telephone 1,800 2,005 1,800 Postage 200 115 200 Employee Liability Ins. 4,400 6,700 6,000 Mileage 0 0 0 Outside Reproduction 150 150 150 Computer Charges 1,200 1,200 1,200 Maintenance Contracts 0 4,200 4,20.0 Legal Services 10,000 8,000 10,000 Janitorial Services 1,200 800 1,200 Contractual Labor 30,000 24,000 30,000 Marketing (DBA) 5,000 5,000 5,000 Office Rent 8,700 7,500 8,700 Dues/Subscriptions 500 600 700 Other Contractual 1,000 125 500 Meals 0 50 100 64,150 60,445 69,750 COMMODITIES Office Supplies 300 300 150 Copier Supplies 500 500 500 Coffee Supplies 200 170 200 Other Commodities 0 0 0 1,023 1,023 850 CAPITAL OUTLAY Improvements 129,922 57,500 228,491 129,922* 57,500 228,491 OTHER Loan Repayment 38,851 31,585 31,816 Transfer to General Fund 1,569 1,569 0 Contingency 4,000 400 4,000 44,420 33,554 35,816 TOTALS 272,887 185,872 370,079 *This figure includes the re -appropriation of project funds in January, 1996 and therefore does not agree with the $90,922 in the budget approved by the Board a year ago. Net available in 1996 Capital Outlay Fund: $ 9,822 Re -appropriate 1996 committed but unspent funds 35,000 Re -appropriate 1995 committed but unspent funds 27,000 Carryforward positive balance from 1996 O&M estimated as follows: Personal Services Budget: 33,732 Year End Estimate 33.350 Surplus/(shortfall) 382 382 Contractual Services Budget: 64,150 Year End Estimate 60,445 Surplus/(shortfall) 3,705 3,705 Commodities Budget 1,023 Year End Estimate 1,023 Surplus/(shortfall) 0 0 Other: Contingency Budget: 4,000 Year End Estimate 400 surplus/(Shortfall) 3,600 3,600 Loan Repayment (Linden): 31,585 Year End Estimate: 31.585 Surplus/(Shortfall) 0 0 Total carryforward available: $ 7,687 7,687 Estimated 1997 Revenues: Ad valorem tax 149,584 Auto Specific 15,986 Interest earnings 5,000 CDBG Grant 90,000 185 N. College sale 30,000 Total 1997 Revenues 290,570 290,570 Estimated 1997 Expenses: Personal Services 35,172 Contractual Services 69,750 Commodities 850 Other: Contingency 4,000 Loan Repayment 31,816 Total Estimated 197 Exp.: 141,588 (141,588) Net Estimated surplus $148,982 148,982 Total available for Capital Outlay Fund: $228,491 • L-] L Going into 1997, the DDA has available, if the Board chooses to budget so, $228,491 for capital projects (facades, sidewalks, etc.). This money breaks out as follows: Dollars already committed: $ 62,000 CDBG Grant monies 90,000 Unrestricted/uncommitted 76,491 Reviewing the committed funds, the DDA presently has set aside: Cozzola's ADI 200 Walnut 350 Linden $ 20,000 7,000 25,000 10,000 $ 62,000 The status of these four projects is: Cozzola's--dormant although the pizzeria still owns the building; ADI--actively designing project (buffer to parking lot); 200 Walnut --actively marketing the space; 350 Linden --actively renovating. It seems reasonable to deduce that the funds committed to Cozzola's will go unused. Therefore, the Board can add that $20,000 to the unrestricted/uncommitted category if it chooses. The Authority's commitments to the other three projects should remain in place. The attached line -item budget reflects a capital outlay of $228,491. Resolution 96-6 approves the budget and makes the same recommendation to City Council. 2. Mill Lew. As noted above, $149,584 in revenues from an ad valorem tax is generated through a levy of 4.05 mills. Resolution 96-7 recommends to City Council setting the mill at that level. 3. Debt Service Appropriation The DDA's outstanding tax increment bonds have a payment obligation of $1,437,860 in 1997. This obligation is paid for from the following sources: Beginning fund balance $2,295,644 Tax Increment funds (estimated) 914,928 Investment earnings 100,000 $3,310,572 Resolution 97-8 recommends to City Council the payment of the $1,437,860 TIF debt obligation for 1997. RESOLUTION 96-7 OF THE BOARD OF DIRECTORS OF THE FORT COLLINS DOWNTOWN DEVELOPMENT AUTHORITY APPROVING AND RECOMMENDING TO THE FORT COLLINS CITY COUNCIL THE BUDGET OF THE ESTIMATED AMOUNTS REQUIRED TO PAY THE EXPENSES OF CONDUCTING THE BUSINESS OF THE DOWNTOWN DEVELOPMENT AUTHORITY FOR THE FISCAL YEAR ENDING DECEMBER 31, 1997 WHEREAS, the Fort Collins Downtown Development Authority has been duly organized in accordance with the Colorado Revised Statutes 31-25-804, 1973 as amended; and, WHEREAS, the Board of Directors of the Downtown Development Authority shall under Colorado Revised Statutes, 31-25-816, 1973 adopt a budget of the estimated revenues and expenditures to be received and incurred during fiscal year ending December 31, 1997. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE DOWNTOWN DEVELOPMENT AUTHORITY OF THE CITY OF FORT COLLINS, that the following budget is adopted for the fiscal year ending December 31, 1997 and therefore recommends to the Council of the City of Fort Collins the adoption of this budget. Revenues: Ad Valorem Taxes $149,584 Auto Specific Ownership Tax 15,986 Investment Interest 5,000 CDBG Grant 90,000 Re -appropriation of unspent 1996 funds 79,509 Undesignated Reserves (proceeds from the sale of 185 N. College Avenue) 30,000 TOTAL 370,079 Expenses: Personal Services $ 35,172 Contractual Services 69,750 Commodities 850 Capital Outlay 228,491 Other 35,816 TOTAL $370,079 Passed and adopted at a regular meeting of the Board of Directors of the Fort Collins Downtown Development Authority this 3rd day of October, 1996. Stephen Slezak, Chair ATTEST: Mary Brayton, Secretary RESOLUTION 96-8 OF THE BOARD OF DIRECTORS OF THE FORT COLLINS DOWNTOWN DEVELOPMENT AUTHORITY RECOMMENDING TO THE FORT COLLINS CITY COUNCIL THE DETERMINING AND FIXING OF THE MILL LEVY OF TEE DOWNTOWN DEVELOPMENT AUTHORITY FOR THE FISCAL YEAR ENDING DECEMBER 31, 1997 WHEREAS, the Fort Collins Downtown Development Authority has been duly organized in accordance with the Colorado Revised Statutes 31-25-804, 1973 as amended; and, WHEREAS, the Board of Directors of the Downtown Development Authority approved the 1997 Operations and Maintenance Budget through passage of Resolution 96-6. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE DOWNTOWN DEVELOPMENT AUTHORITY OF THE CITY OF FORT COLLINS, to recommend to the Council of the City of Fort collins the mill levy rate for taxation upon all the taxable property within the Downtown Development Authority District for the fiscal year ending December 31, 1997 be set at 4.05 mills which is sufficient to raise ad valorem revenues for the 1997 Operations and Maintenance Budget as approved by the Fort Collins Downtown Development Authority which levy represents the amount of taxes for the Downtown Development District to provide for payment during the ensuing budget year of all properly proposed demands against the Downtown Development Authority (however, said mill levy is subject to change based on assessor's calculations which have not been published at this time). Said mill levy shall be distributed to general expense, which levy as so distributed shall be certified by the County Assessor and the Board of County Commissioners of Larimer County, Colorado by the City Clerk as provided by law. Passed and adopted at a regular meeting of the Board of Directors of the Fort Collins Downtown Development Authority this 3rd day of October, 1996. Stephen Slezak, Chair ATTEST: Mary Brayton, Secretary E RESOLUTION 96-9 OF THE BOARD OF DIRECTORS OF THE FORT COLLINS DOWNTOWN DEVELOPMENT AUTHORITY RECOMMENDING TO THE FORT COLLINS CITY COUNCIL THE APPROPRIATION OF ONE MILLION, FOUR HUNDRED THIRTY SEVEN THOUSAND, EIGHT HUNDRED AND SIXTY DOLLARS ($1 437 860) IN THE I DOWNTOWN DEVELOPMENT AUTHORITY FUND TO THE CITY OF FORT COLLINS SALES AND USE TAX FUND FOR PAYMENT OF DEBT SERVICE FOR THE FISCAL YEAR ENDING DECEMBER 31, 1996 WHEREAS, the Fort Collins Downtown Development Authority has been duly organized in accordance with the Colorado Revised Statutes 31-25-804, 1973 as amended; and, WHEREAS, pursuant to Ordinance No. 15, 1983, the Council of the City of Fort Collins established a special fund consisting of separate accounts for: (1) operation and maintenance expenses of the Fort Collins Downtown Development Authority; (2)tax increment funds received by the Fort Collins Downtown Development Authority; and (3) project funds consisting of proceeds of bonds, loans and other forms of indebtedness; and, WHEREAS, the Council of the City of Fort Collins, in Ordinance No. 36, 1992 authorized the issuance of Tax Increment Revenue Refunding and Improvement Bonds Series 1987, dated May 15, 1988, in the aggregate amount of ELEVEN MILLION THREE HUNDRED EIGHTY THOUSAND DOLLARS ($11,380,000); and, WHEREAS, Section 2 of Ordinance No. 95, 1987 provides that tax increment monies will be pledged to the payment of interest on the Bonds; and, WHEREAS, interest on the bonds is due and payable. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE FORT COLLINS DOWNTOWN DEVELOPMENT AUTHORITY that it recommends to the Council of the City of Fort Collins the appropriation for expenditure in 1997 from the tax increment fund, the sum of ONE MILLION, FOUR HUNDRED THIRTY SEVEN THOUSAND, AND EIGHT HUNDRED SIXTY DOLLARS ($1,437,860) for payment of debt service for 1995 on the bonds authorized by City Council in Ordinance No. 36, 1992. Passed and adopted at a regular meeting of the Board of Directors of the Fort Collins Downtown Development Authority this 3rd day of October, 1996. Stephen Slezak, Chair ATTEST: Mary Brayton, Secretary