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HomeMy WebLinkAboutDowntown Development Authority - Minutes - 01/23/1986D&NTOWN � DEVELOPMENT AUTHORITY 102 REMINGTON STREET, FORT COLLINS, COLORADO 80524 DOWNTOWN DEVELOPMENT AUTHORITY Regular Directors Meeting January 23, 1986 The Board of Directors of the Downtown Development Authority met in regular session at 7:30 a.m., January 23, 1986 in the DDA Conference Room. There were present: Barbara Schofield, Chairman presiding George Betz Eldon Ward Earl Wilkinson Barbara Liebler Bill Friedrichsen Larry Estrada Chuck Wanner Dan Larsen Staff: Chip Steiner, Acting Director Jan Martin Also: Robert N. Linda Hopkins Greg Denton Bruce Freestone Walt Brown Dick Beardmore Carol Oborne Laurie Howell Chris Sholly Lisa Morrison Paul Nolan Barbara Schofield called the meeting to order and asked for approval of the minutes of January 9, 1986. Dan Larsen moved for approval, seconded by Earl Wilkinson. (303) 484-2020 PRESENT MINUTES The first order of business was discussion of the Opera House OPERA project. Walt Brown reported that he was donating 4500 square feet HOUSE to the theatre portion of the project. The theatre would use the atrium as a lobby. Open Stage would also pay property tax. The main questions requiring answers on this project were: 1. Can the development fees be paid by the DDA? Both bond counsel and DDA legal counsel agree that paying development fees is a legitimate use of Tax Increment funds. Development fees are spent for public improvements. Therefore, financial participation by the DDA in this area is the same as making alley or sidewalk improvements. The purpose of DDA participation in such public improvements is to encourage private investment in the downtown. Private investment is needed to raise the downtown tax base which in turn is necessary to avoid taxing the rest of the community to pay for public improvements in the downtown. 2. How can DDA participate in the Open Stage Theatre? This question did not get answered. The theatre is a different project and will be brought back to the Board at a later date. 3. What value would the County Assessor's office assign the project? The Assessor's letter estimates the value of the completed project at $5,400,000. Using 1977 as base tax year and current mil levy, the supportable debt is $495,900 (with 1.25 debt coverage). Using 1986 mil, supportable debt is $530,000 (with 1.25 debt coverage). The developer request is for a maximum of $404,000. The increment is well above the request. 4. What about parking? Only a portion of the project (about d) is a PUD. Developer has spaces available to meet PUD requirements. The staff recommendation for this project is participation at requested level of $404,000 for the following reasons: a major College Avenue renovation; the project is well -conceived and designed; project meets with DDA and City objectives to promote historic preservation and to prevent deterioration of downtown properties; the request for funds is well below increment generated and therefore frees up money to permit DDA to pursue other non - increment generating projects. DDA commitment should be contingent upon proof developer has adequate financing to complete project, pedestrian -guidelines used in design of sidewalks, City Council approval and appropriation of funds, and the ability of DDA to market bonds. Bruce Freestone of Open Stage Theatre spoke on his group's fundraising efforts. A discussion of the paying of development fees by the DDA ensued. Eldon Ward reported that this subject was discussed at an Urban Land Institute conference he had recently attended. Conclusions there were that there is usually a bigger problem waiving development fees than having them paid for, and that there needs to be direct benefit between the fees nad the area being charged. There is a big difference in Council or DDA paying the fees -the Downtown Development Authority is in the business of development. Earl Wilkinson moved support of the project up to $403,945 and further authorized staff to enter into negotiations with the developer and bring a contract back to the Board. Chuck Wanner seconded the motion. Discussion followed. Larry Estrada stated his support of the project, but added that he was guarded on paying the development fees. He does not want every developer coming to the DDA expecting to have development fees paid. He is in favor of paying them in this case. Barbara Schofield stated that the downtown is the "heart and soul" of the city and this project is representative of that concept. A roll call vote was taken with the Board unanimously approving this project. Earl Wilkinson brought up the fact that there is no other way to assist this project except through the development fees since we cannot assist with parking. Also he brought up the he could not remember parking space requirements ever being waived any place else except the downtown area. They were waived in the downtown area because it was impossible to develop the parking downtown, there was no place to put it. Mr. Wilkinson felt there was a correlation - since there is no other way to assist the project except for development fees unless we went to the railroad and tried to buying land for parking, for example. Robinson Piersal Plaza was pulled from the agenda. Next item on the agenda was discussion of the agreement with the LDC in regard to the property located at 185 North College Ave. known as Small Wonder. Chip Steiner gave an update on the purchase of the property. He stated it should go to Council on February 18. The Board decided not to vote on the agreement with LDC until the document is in final form. The next item discussed was the date for a special meeting to discuss the hiring of an executive director. Monday, February 10, 7:00 p.m. was set for that meeting. There being no other business, the meeting was adjourned. Barbara Liebler, Secretary MOTION AGREEMENT WITH LDC SPECIAL MEETING ADJOURN