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HomeMy WebLinkAboutDowntown Development Authority - Minutes - 10/07/1999ddadbwrvrowry • DEVELOPMENT AUTHORITY 19 OLD TOWN SQUARE, SUITE 230 FORT COLLINS, CO 80524 Mary Brayton, Chair 484-1401 (W) Chuck Wanner, Council Liaison 484-0810 (H) Anne Garrison, Staff Liaison 484-2020 (W) DOWNTOWN DEVELOPMENT AUTHORITY Regular Directors' Meeting MINUTES OF OCTOBER 7, 1999 Telephone (970) 484-2020 Telefax (970) 484-2069 REGULAR MEETING The Board of Directors of the Downtown Development Authority met in regular session at 7:30 a.m. on October 7, 1999 in the conference Room at Home State Bank, 303 East Mountain Avenue. PRESENT There were present: Mary Brayton, Chair Larry Stroud, Vice Chair Steve Slezak Greg Belcher Carey Hewitt Chuck Wanner John Pitner Margaret Brown ABSENT Jason Meadors, Secretary/Treasurer STAFF Jay Hardy, Executive Director Anne Garrison Lucia Liley, Counsel GUESTS John Fischbach, Angela Milewski, David Short, Frank Lancaster, Susanne Durkin, Ron Phillips, Alan Krchmarik, Gary Diede, Ed Stoner CALL TO ORDER Ms. Brayton called the meeting to order at 7:35 a.m. and roll call was taken. The Chair extended its condolences on behalf of the Board of Directors to Jason Meadors, upon his recent bereavement. APPROVAL OF Mr. Belcher moved to adopt the minutes of September 2, 1999 as written, MINUTES this was seconded by Mr. Slezak and carried unanimously. DDA MINUTES PAGE MASON STREET In his opening remarks, Mr. Hardy shared that approximately 40% of PARKING GARAGE retail space on the ground level of the parking structure is already leased and tenant finish begins November 4. It is believed the parking ramp will open by November 22, in anticipation of the holiday season, and businesses may open as early as January 2000. In her address to the Board, Susanne Durkin explained some of the additional amenities planned for the new parking ramp. These will include brighter foot candles, lighter wall surfaces, security throughout the night, so the structure will be staffed 24 hours a day between the daytime parking staff and night time security services. Ms. Durkin reaffirmed that in accordance with the agreement, 300 spaces had been allotted to DDA for the benefit of the business community, 300 to the County and 300 to the City of Fort Collins. A great many individuals who currently hold permits for lots will be grandfathered into the new structure. This leaves a significant waiting list for others desiring space in the new ramp, even though a 30% oversell has been factored in. Mr. Hardy reminded the Board that when the parking survey was done in 1995 the need for two such parking structures was determined. The current ramp, therefore, was never intended to provide a complete answer to downtown's parking needs. Parking on Block #32 will be available for a short time before construction begins on the new City building, and the temporary lot which will eventually house the Transit Center will also remain open through Christmas. Some hourly spaces will be available in the new ramp during the year 2000, but by 2001 it could be 100% permit parking, although this is not likely. The cost of permits for the new structure will be $36.00 a month. Ms. Durkin observed that to avoid the problems being faced today with the Remington Street garage; long term maintenance for the Mason Street ramp has been built into the budget. REMINGTON STREET In 1998, Mr. Hardy noted that the Board had approved a commitment of PARKING GARAGE $15,000 toward an engineering study, in an effort to ascertain the maintenance needs of the Remington Street garage. It has now been determined that it will take $220,000 to implement these improvements, and DDA is being asked to assist with the City's shortfall. Mr. Hardy observed that should the Board wish to participate, this money would produce no revenue stream and no tax increment, and would have to be paid out of reserves. This presents a problem, because as a result of the project financial package just introduced to City Council, the reserves are simply not there at this time. The Board posed the following questions/suggestions: • Could revenue from one parking ramp be used to fund the other? • Could Parking Services implement elevated fines and stricter penalties? • More diligent monitoring of frequent violators and progressive ticketing • Suggestion to raise monthly permit rate on old structure to match new one • DDA sit down with Parking Services to strategize on policies which no longer meet needs of today's parking community. • A one time assessment of $50/space which should generate $160,000 DDA MINUTES PAGE Mr. Fishbach restated for the record that the original contract required the City to be responsible for all maintenance issues relating to the Remington Street Garage, and he therefore understood DDA's struggle with this issue. Mr. Phillips then suggested that the City find the funds to take care of this needed maintenance, and asked instead if DDA could fund the street and sidewalk improvements in a multi -block area at Four Comers. This being a completely different subject, Mr. Slezak moved to table the issue pending additional information on this new idea. This was seconded by Mr. Stroud. Mr. Hardy suggested meeting with Mr. Phillips and putting a proposal together for consideration by the Board, as with any other project. The motion carried unanimously. MARKETING OF MASON David Short, Executive Director of the Downtown Business Association, STREET GARAGE appeared before the Board with an offer to market the new parking structure, side by side with holiday promotional efforts being put out by the DBA for the Thanksgiving/Christmas Season. He stated that DBA had set aside $5,000 for a holiday media blitz to include television, radio and print publications, and asked if DDA would consider participating with an additional $3,000 for a marketing effort for the garage. Mr. Short committed to making the parking structures a top priority in the advertising campaign, inviting people to come downtown, park under cover, and shop at their leisure. Mr. Pitner made a motion to approve $5,000 toward this effort, and Mr. Fishbach immediately offered to match the amount. This was seconded by Mr. Slezak and the motion carried with Mr. Slezak opposed. Mr. Hardy agreed to meet with Mr. Short to determine dollar amounts and timeframe in which funds would be spent, and report back to the Board at the November meeting. OTS MAINTENANCE Mr. Hardy referred the Board to a memo from Mr. Fischbach included in the packets, in which a suggestion is made to resolve the Old Town Square maintenance issue. Mr. Fischbach proposed that DDA make $12,500 available to be used for capital improvements, and the City will match the amount, which would then be used for plaza maintenance. Funds would be administered through the DDA office, and the impact would be critiqued at year end. Once a year the list would be reviewed, and only projects directly relating to the plaza would be considered. Mr. Stoner listed some maintenance concerns which would take priority: * The fountain's infrastructure has failed, pumps, shafts etc., need replacing * Pot holes in pavers and risers near trees - need to regrade and repave * Storm drainage near the eagle has collapsed and requires attention • Ballasts and wiring on street lights have gone out in several instances • Drinking fountain water lines which go down 9ft are compromised It was Ms. Liley's recommendation, at this juncture, that an addendum be crafted to the existing agreement, specifying that the $12,500 donated by the City for maintenance of the plaza, be used to provide services over and above the regular cleaning and repairs being performed, and that it be utilized for the 'enhanced' maintenance of the plaza. • DDA MINUTES PAGE Mr. Stroud then made a motion to allocate up to $12,500 annually for capital improvements to the plaza, subject to an amendment to the original agreement, as stated by Counsel. This was seconded by Mr. Wanner. A friendly amendment was offered by Mr. Slezak that the funds be matched by Old Town Square Property Management, this was acceptable to both Messrs. Stroud and Wanner and the motion carried unanimously. Legal Counsel inquired if this was a one year contract only, or one year with renewals. The Board determined that a five year renewal period should be set, reserving the right to call it back for review. The process would include Messrs. Hardy and Stoner determining the needed improvements, prioritizing them and presenting them to the Board for approval, as with any other project. Mr. Hardy will also provide periodic updates to the Board. OTS PATIO LICENSE A recent change has taken place, and as a result, Counsel requested time AGREEMENTS to review the subject more completely. The Board, however, wanted to afford Mr. Stoner an opportunity to address the issue before a motion was made to table this item. Mr. Stoner offered the Board some background information, stating that restaurants were encouraged, initially, to put patios in the square to create ambience; it was never suggested that they should pay for them. Mr. Stoner called for equity among the 34 restaurants in downtown, not simply those located in the plaza, all of which are utilizing public property for private benefit. Mr. Stoner also cited certain legal concerns, pertaining to the covenants, which have been raised by Mr. Williams, who has been retained by the restauranteurs. A motion was then made by Mr. Pitner and seconded by Mr. Stroud that this issue be tabled until the next meeting. Ms. Uley clarified for the Board that there are a series of agreements, many of which go back a long time, and they are not all the same. Counsel feels it is important that some of the Board Members who are new to this process understand how these agreements came about and what are some of the differences. This then, will be the thrust of next month's discussion. NORTHERN HOTEL Mr. Hardy recapped for the Board that at the March meeting a commitment of $331,000 was made to the Northern Hotel. Since then, a request has been received from Funding Partners to obtain these funds up front, prior to the acquisition of the property on October 22, 1999. This is due to some timing issues which are fully explained in Ms. Gerard's letter included in the packets. This is contrary to DDA's earlier commitment and therefore requires Board approval. The monies would be borrowed from the City of Fort Collins only until the financing package is complete. Repayment to be made prior to December 31, 1999. Mr. Wanner moved to authorize the early payment of monies to Funding Partners, this was seconded by Mr. Belcher and carried unanimously. Ms. Liley urged that in addition to the security measures which will be - in place by October 22, 1999 she would like to negotiate some additional provisions within the structure of the subordinate lien. These would be the setting up of a reserve account; obtaining an architect's certification within a certain number of days after completion; having an administrative chart in case of default, plus a default interest rate, etc., These are measures DDA MINUTES PAGE agreed upon between Steve Roy and Ms. Liley. ADOPTION OF Resolution 99-3 - Floodplain Regulations - DDA's position RESOLUTIONS Mr. Slezak moved to approve, seconded by Mr. Stroud - vote carded with Mr. Wanner opposed. Resolution 99-4 - Determine and Fix Mill Levy Mr. Slezak moved to approve, seconded by Mr. Belcher - carried unanimously Resolution 99-5 - Repayment of bonds. It was noted by Mr. Krchmadk that this resolution should also include DDA's share of the cost of the new parking structure. With these changes noted, Mr. Wanner moved to approve, this was seconded by Mr. Slezak and carried unanimously. Resolution 99-6 - Appropriation of $100,000 into the O & M Fund A suggestion was made to expand the language in the third paragraph from 'facade acquisitions and sidewalk improvements' to read, 'any improvements which can be funded by the Downtown Development Authority.' Mr. Slezak moved to approve the resolution including a change of language, this was seconded by Mr. Belcher and carried unanimously. OTHER BUSINESS The finance package formulated by Mr. Krchmadk and Mr. Hardy was pulled from the consent agenda at Tuesday evening's Council meeting. It was, however, approved and is up for second reading on October 19. This package will save more than $100,000 over the life of the projects and all are included, with the exception of 401 West Mountain and the Armstrong Hotel. Baseball/MuRI-Use Facility - While this issue is not necessarily dead, it has lost some of its momentum. Too many issues are at stake, and the Rockies too, are in a holding pattern. There does not apear to be any possible sites located within DDA's current boundary. Retreat - Tentative arrangements have been made with the Edwards House from 12 - 5:00 p.m. on Thursday November 4, 1999. This time period will include luncheon and the regular meeting followed by a reheat. The City has requested DDA formulate a two year plan and of course DDA's future should be a point of discussion. The Board is encouraged to contact Mr. Hardy with other issues which are appropriate for the retreat agenda. The Board agreed to the November 4, date. ADJOURN There being no further discussion, the meeting adjourned at 10.15 a.m. Jason Meadors, Secretary dbwrvrowry • DEVELOPMENT AUTHORITY 19 OLD TOWN SQUARE, SUITE 230 FORT COLLINS, CO 80524 To: DDA Board of Directors From: Jay Hard a _ Date: October 20; �9 RE: Northern Hotel Resolution 99-7 Telephone (970) 484-2020 Telefox (970) 484-2069 During the regularly scheduled meeting on October 7, 1999 the Board approved the payment in advance of DDA's funding for the Northern Hotel. Further discussions on this topic revealed an issue regarding the facade. The Colorado Historical Society is contributing a substantial amount in the form of a grant to this renovation, and is therefore requiring an easement on the facade to be held by an entity whose sole mission is historic preservation. At this time that entity would be the private non-profit foundation (the foundation) of the State of Colorado Historical Society or the local Landmark Preservation Commission (LPC). In reality, this means the DDA would contribute the same amount of money ($331,000) but would not receive the facade easement. However, the facade will fall under a tighter scrutiny in the hands of the foundation or the LPC. Again, our focus is to see the project done, and done in a manner acceptable to all parties concerned. This change does not affect the outcome in any way, nor does it lessen the future maintenance and upkeep of the project. The DDA will, however, require an easement agreement in escrow to protect any elements of the aforementioned, which may arise. 0 RESOLUTION 99-7 OF THE BOARD OF DIRECTORS OF THE FORT COLLINS DOWNTOWN DEVELOPMENT AUTHORITY AUTHORIZING A GRANT OF THREE HUNDRED THIRTY ONE THOUSAND ($331,000) TO THE CITY OF FORT COLLINS FOR ACQUISTION AND RENOVATION OF THE NORTHERN HOTEL 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 CRS 31-25-808 (1) (g), the Downtown Development Authority is authorized to make a grant to the City of Fort Collins; WHEREAS, the Downtown Development Authority desires to make such a grant for purpose of acquisition and renovation of the Northern Hotel including the fagade thereof; WHEREAS, the Board of Directors of Downtown Development Authority finds that the renovation of the Northern Hotel, and specifically the renovation of its facade, fiuthers the DDA's statutory mission to restore and revitalize the downtown area and is in the best interests of its constituent within the DDA's boundaries. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE FORT COLLINS DOWNTOWN DEVELOPMENT AUTHORITY that a grant of THREE HUNDRED THIRTY ONE THOUSAND ($331,000) shall be made to the City of Fort Collins for the purpose of acquiring and restoring the Northern Hotel and specifically the renovation of its facade. Such grant shall be made within 5 days of the effective. date of the Fort Collins City Council ordinance appropriation of tax increment reserve monies into the Capital Improvement fimd of the DDA for such purpose. Passed and adopted at a special meeting of the Board of Directors of the Fort Collins Downtown Development Authority this 20m day of October, 1999. Mary J. Brayton, Chair ATTEST: Jason Meadors, Secretary RESOLUTION 99-6 OF THE BOARD OF DIRECTORS OF THE FORT COLLINS DOWNTOWN DEVELOPMENT AUTHORITY RECOMMENDING TO THE FORT COLLINS CITY COUNCIL THE APPROPRIATION OF ONE HUNDRED THOUSAND DOLLARS ($100,000) FROM TAX INCREMENT RESERVE MONIES INTO THE OPERATING AND MAINTENANCE FUND OF THE DOWNTOWN DEVELOPMENT AUTHORITY FOR PAYMENT OF OBLIGATIONS TO MAKE CERTAIN CAPITAL IMMOVEMENTS IN THE DOWNTOWN DEVELOPMENT AUTHORITY DISTRICT IN THE FISCAL YEAR 2000 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. 36, 1992, Section 5B and Section 5J thereof, the City Council may appropriate tax increment monies for purposes of debt service payments for obligations other than those of the City of Fort Collins Downtown Development Authority Tax Increment Revenue Refunding Bonds Series 1992; and, WHEREAS, the Downtown Development Authority finds it to be in the best interests and welfare of the Downtown Development Authority district to continue its program to assist and encourage downtown renovation and revitalization in the furtherance thereof, to provide funding for the acquisition and renovation of facades, construction and installation of public improvement, acquisitions of property interest and any other purpose authorized under CRS 31- 25-801 et sec; 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 from the tax increment fund to the Operation and Maintenance account of the Downtown Development Authority for expenditure in 2000 the sum of ONE HUNDRED THOUSAND DOLLARS ($100,000) for the acquisition and renovation of facades, construction and installation of public improvements, acquisitions of property interest and any other purpose authorized under CRS 31-25-801 et sec. Passed and adopted at a regular meeting of the Board of Directors of the Fort Collins Downtown Development Authority this 7 h day of October, 1999. Mary J. Brayton, Chair ATTEST: Jason Meadors, Secretary i E RESOLUTION 99-8 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, 2000 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, 2000. NOW, THEREFORE BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE DOWNTOWN DEVELOPMENT AUTHORITY that the following budget is adopted for the fiscal year ending December 31, 2000 and therefore recommends to the Council of the City of Fort Collins the adoption of this budget. Revenues: Ad Valorem Taxes $186,584 Auto Specific Ownership Tax 22,719 Interest Earnings 5,000 Tax Increment Funds 100,000 TOTAL $314,303 Expenses: Personal Services $107,435 Contractual Services 34,008 Commodities 2,300 Capital Outlay 100,000 Other 37.420 TOTAL $281,163 Passed and adopted at a special meeting of the Board of Directors of the Fort Collins Downtown Development Authority this 20th day of October, 1999. Mary Brayton, Chair ATTEST: Jason Meadors, Secretary