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HomeMy WebLinkAboutDowntown Development Authority - Minutes - 05/07/1987ddoDANTOWN DEVELOPMENT AUTHORITY 102 REMINGTON STREET, FORT COLLINS, COLORADO 80524 Regular Directors Meeting May 7, 1987 • The Board of Directors of the Downtown Development Authority met in regular session at 7:30 a.m., May 7, 1987 in the DDA Conference room. There were present: George Betz, Chairman presiding Barbara Schofield Eldon Ward Chuck Wanner Lucia Liley Jeanne Abdelnour Earl Wilkinson Bill Friedrichsen Loren Maxey Staff: Also: Chip Steiner, Executive Director Jan Martin Alan Krcmarik Kay Rios Greg Denton Bill Starke Joe Lewandowski Dave Herrera David Bailey Chuck Mabry Ed Baldwin Linda Hopkins Jo -an Barnett Chairman George Betz called the meeting to order and asked for approval of the minutes of April 7, 1987. Earl Wilkinson moved for approval seconded by Barbara Schofield. The first item discussed was the property at 185 N. College (Small Wonder). There were two parts to this item: report from legal counsel and sale of the property. Under legal counsel, Greg Denton stated that back taxes are due on the property and he has been working with Mr. Hawley to resolve this problem. Mr. Denton also reported that Mr. Hawley has gotten the business back and has been operating it without a lease. However, Mr. Denton has drawn up a lease agreement between the DDA and Mr. Hawley whereby the lease payment will be $550 per month and back rent will be paid on March and April. Discussion followed. Ms. Schofield asked Mr. Denton if it was clear to Mr. Hawley that the property must be kept up (weeds, no broken down cars etc.) and Mr. Denton replied that it was. Y Y' (303) 484-2020 PRESENT MINUTES 185 N. COLLEGE LEGAL ISSUES The second part to this item was sale of the property. Mr. Steiner stated that the original plan was to acquire property, have eastbound LaPorte vacated, and sell property for redevelopment. The money from the sale would cover the shortfall for debt service. However, the City lacks funds to reconstruct LaPorte/College intersection at this time, which makes the sale of the existing property difficult. Staff is seeking advice and direction of the Board on how to proceed, especially if this property is not sold. Discussion followed. It was suggested that the Mason Street Parking lot property could still be sold. Earl Wilkinson stated that it would be important to maintain Mason Street lot as a parking lot since the area needs that parking -- for that reason he was hesitant to sell the property because it was unlikely anyone would buy the land and keep it for parking. He suggested that the Parking Commission could buy the lot and that the DDA should make this recommendation to City Council. At this point Loren Maxey, City Council representative to the DDA, was introduced. He stated that the Council was in the process of combining boards and commissions, and that one of the discussions involved combining the DDA and Parking Commission. Mr. Maxey stated that the informal feeling from Council was that this combination was appropriate and should proceed as quickly as possible. Discussion followed. Earl Wilkinson asked if it was appropriate to appoint a DDA liaison to work with Council and legal counsel on how to mesh the two. Chairman George Betz reminded the Board that two separate items were being dealt with --and that the immediate need was the sale of the property. Mr. Steiner stated that the DDA could wait 2-4 weeks to see what impact the refunding of the bonds would have on the debt service. Earl Wilkinson moved that the DDA request Loren Maxey to move ahead with City purchase of Mason Street parking lot, with funds available, at his discretion. Lucia Liley seconded the motion. Discussion followed. A roll call vote was taken and the motion passed unanimously, with the exception of Loren Maxey who abstained. Mr. Betz asked for liaison volunteers to work on combining DDA and Parking Commission --Eldon Ward and George Betz will be the liaisons. The conversation then reverted back to the property at 185 North College. Chip Steiner asked if the DDA sold the property with the promise that the intersection would be reconstructed, would it be agreeable to state that tax increment could go to the reconstruction? Discussion followed. It was decided that this item needed to be worked on. The next item discussed was the Major Motors building. Lucia Liley withdrew from this discussion. Mr. Steiner gave the background: as part of the agreement with Historical Opera House, $5,000 of project tax increment was to be used by the Housing Authority for renovation of the 2nd floor of Major Motors Building. In order to provide a place for some of the displaced tenants of the Opera House project, the Housing Authority had to proceed with the renovation. According to the agreement on Opera House, no funds would be spent by the DDA until taxes on completed project were certified. This presents a problem to the Housing Authority which has already done its work and would like the money now. Mr. Steiner stated that the DDA can: SALE OF PROPERTY MASON STREET LOT COMBINE DDA PARKING COMMISSION MOTION ROLL CALL VOTE MAJOR MOTORS BUILDING/HOUSING AUTHORITY LUCIA LILEY WITHDRAWS 2 0 1. Take money from O&M and reimburse; 2. Wait for completed refunding and new money; 3. Re —appropriate certain funds in capital project. Mr. Steiner further stated that the DDA must have an additional agreement with Historical Opera House to reimburse the DDA if the project fails to proceed or is not completed. If the project is done, the DDA reduces total expenditure on project by $5,000. Discussion followed. Eldon Ward stated that the DDA made a commitment, and that the Housing Authority did a great job. Mr. Ward moved that the DDA take appropriate action to reimburse the Housing Authority for the Major Motors renovation as quickly as possible, and sign an additional agreement with Historical Opera House to insure reimbursement of the $5,000 to the DDA. Jeanne Abdelnour seconded the motion. A roll call vote was taken and the motion passed unanimously. The next item discussed was Remington Place, the congregate care facility proposed for the 200 block of Remington Street. The project will consist of 156 residential units of senior housing and has P & Z approval. Mr. Ed Baldwin was introduced as construction manager and representative for the developer, and then gave a brief presentation of the project. Mr. Steiner then presented the options available to the board: Project has been plugged in to cashflows with entire increment flowing to debt service. The DDA can: 1. Leave as is; 2. Participate--$34,000 of increment would finance about $260,000 in improvements. The risks: Leave as is--DDA may capture no increment; Participate --means shortfall beginning 1994 Mr. Steiner informed the Board that City Manager Steve Burkett wants a financial analyst to study the project to determine the "need" of DDA participation. Discussion followed. Earl Wilkinson stated he had a problem hiring consultant to determine the need --the DDA needs to be able to make the decision. Barbara Schofield asked about the developer's financing. Mr. Baldwin stated that it is not committed yet. Ms. Schofield suggested that the DDA send the message that it is pleased and hope that the developer moves forward --when financing is in place, come back to the DDA and a better judgement can be made. The rest of the board agreed with Ms. Schofield and stated that they were interested in the project. The board directed staff to continue working with the developer on this project. Lucia Liley returned to the meeting. The next item discussed was the funding of a market analysis for additional downtown retail. Mr. Steiner suggested some possible approaches including: 1. Find an interested property owner willing to pay for the study. 2. Draft an agreement with Ross of do the study but include a guarantee that the Authority would recoup the cost. 3. Pay for the study and issue a RFP which would stipulate the reimbursement of the cost. MOTION—ELDON WARD ROLL CALL VOTE CONGREGATE CARE LUCIA LILEY BACK ROSS CONSULTING/ ADDITIONAL MARKET STUDY 3 4. Skip the study or do it in—house and follow with an RFP if appropriate. 5. Drop the idea. Discussion followed. The Board was split as to whether an additional analysis was needed. Chairman George Betz suggested this item be delayed to next meeting --need additional information. Director Barbara Schofield suggested Mr. Steiner meet with Ross Consulting and convey the Board's concerns and present the results at the next meeting. Under other business, Eldon Ward suggested that the Board might want to consider having a retreat as soon as the new Board members are announced. There being no other business, the meeting was adjourned. Earl Wilkinson, Secretary OTHER BUSINESS RETREAT ADJOURN 4