Loading...
HomeMy WebLinkAboutDowntown Development Authority - Minutes - 03/04/1999T1 7 DOWNTOWN DEVELOPMENT AUTHORITY • 19 OLD TOWN SQUARE, SUITE 230 Telephone (970) 484-2020 FORT COLLINS, CO 80524 Telefax (970) 484-2069 DOWNTOWN DEVELOPMENT AUTHORITY Regular Directors' Meeting Kermit Allard, Chair 482-1893 (W) Chuck Wanner, Council Liaison 484-0810 (H) Anne Garrison, Staff Unison 484-2020 (W) MINUTES OF MARCH 4, 1999 REGULAR MEETING The Board of Directors of the Downtown Development Authority met in regular session at 7:30 a.m. on March 4, 1999 in the conference Room at Home State Bank, 303 East Mountain Avenue. PRESENT There were present: Kermit Allard, Chair Mary Brayton, Vice Chair Greg Belcher, Treasurer Jason Meadors, Secretary Steve Slezak Chuck Wanner Larry Stroud John Pitner ABSENT Margaret Brown STAFF Jay Hardy, Executive Director Chip Steiner, Consultant Anne Garrison GUESTS Frank Bruno, Bruce Hendee, Karen Gerard, Dick Beardmore, Jack Gianola, Ann Tumquist and colleagues, Angela Milewski CALL TO ORDER Mr. Allard called the meeting to order at 7:35 a.m. and roll call was taken. APPROVAL OF Mr. Meadors moved to adopt the minutes of February 11, 1999 as written, MINUTES this was seconded by Mr. Slezak and carded unanimously. Mr. Meadors then moved to approve the minutes of February 17, 1999 this was seconded by Mr. Stroud and carried unanimously. DDA MINUTES PAGE NORTHERN HOTEL Mr. Steiner introduced Karen Gerard and Dick Beardmore to the Board, and provided an overview of the redevelopment plans for the Northern Hotel. The developer is Funding Partners for Housing Solutions and the National Development Council which hope to execute a contract for the building acquisition on March 5, 1999. Mr. Steiner pointed out that a relevant issue for the DDA was the amount of funding being supplied by the investors. He also mentioned that this project had been In negotiation for the past year, and the City and DDA needed to agree to participate, in order to secure the affordable housing tax credits and Historic Society grant. DDA would participate through a facade acquisition In the amount of approximately $265,000 to $300,000. Funding Partners is requesting $650,000 which Is a higher figure than can be supported by the projected tax increment. The City is urging DDA to participate in the amount of $500,000 which significantly reduces its level of participation. ■ A suggestion surfaced proposing that the City might consider waiving development fees. The City might also be able to 'back -stop' any increase above that which is supportable. City suggested that DDA divert the $300,000 designated for the Horticultural Center to the Northern Hotel. There is some reluctance, on the part of DDA however, until such times as a decision regarding the Center's location is formalized. Ms. Gerard indicated that the State Historic Grant is achievable when community support is demonstrated. Application on this and tax credits are due on Apnl 1, 1999. The subject of parking is also an issue, and Ms. Gerard indicated that a plan had been formulated, although there was no written agreement at this time. To this end, Mr. Steiner made the suggestion that permit parking in the garage could be obtained on a month to month basis, not by the Hotel, but by the individual residents. Original elevation maps obtained from the library archives were displayed, and now, as then, the proposed restoration would be circa 1936 - 1937. All units will be at 40% of median income. The first level will be reserved for commercial space which must be leased at market value, with the exception of ongoing leases which are already in place. Discussions centered around the impact it might have on Funding Partners if $331,000 in tax increment is committed, with consideration being given to revisiting the project funding if needed. Mr. Bruno expressed confidence that City staff would recommend $500,000. At this juncture, Ms. Brayton moved to commit up to $331,000 in tax increment generated by the project, with the contingency that the building acquisition contract is executed. The motion also includes the option for Funding Partners to return to DDA after Council has had an opportunity to DDANIINUTES • • PAGE 3 participate, to request any additional funding necessary. This was seconded by Mr. Slezak and the motion passed with opposition. LPC UPDATE Angela Milewski provided an update on behalf of the Landmark Preservation Commission, and indicated that of recent date six projects had been awarded funding; four residential and two non residential. CITY OFFICE BUILDING Returning to the Board a second time to provide an update on the new City Office Building, City Staff shared that RFP's have gone out, and that this 70,000 square foot office building is estimated at a cost of `j8.2 million. It is currently proposed that groundbreaking will begin between April and July 2000. Site elevation maps and artist renderings were displayed to explain the plans. In addition to the building, careful thought has been given to the center of the plaza which is a focal point of the project. Questions were posed concerning the positioning of the building on the comer, and there was some discussion about the bike path and pedestrian plaza which runs along Mason and LaPorte Sheets. The customer approach is projected through the parking lot in the center of the structure, although this is still under discussion. The center door will provide the formal access, although there will be several other doors by which to enter the building. The three story structure lends the Justice Center greater stature, and it has been designed with optimum flexibility. On entering, a very attractive rotunda will greet visitors, and provide the information center for the building. STAFF CONTRACTS Staff contracts were included in the packets for the Board's review. Mr. Slezak moved to approve both contracts as written, with one change noted on Mr. Hardy's in the area of retirement benefits. The motion was seconded by Mr. Belcher and carried unanimously. ADJOURN There being no further discussion, the meeting adjourned at 9:35 a.m. Jason Meadors, Secretary ddoNOWNTOWN DEVELOPMENT AUTHORITY 19 OLD TOWN SQUARE, SUITE 230 Telephone (970) 484-202( FORT COLLINS, CO 80524 Telefax (970) 484-2065 To: DDA Board of Directors From: Jay Hard r/� Date: April 1, 1 (/ Re: Armstrong Hotel (Mountain Empire Hotel) Old Town Hotels, LLC is currently planning a renovation of the existing Mountain Empire Hotel, as well as changing its name back to the original `Armstrong Hotel'. Chip Steiner, a representative of the project, met with me last week to discuss the project and the possibility of DDA participation. The renovation of this hotel would provide a much needed asset to the downtown in a way of an upscale, boutique hotel with an average cost of$125/room/night. This project will reduce the current room inventory of 68 to 54. The reduction is necessary to provide the spacing and amenities desired for the boutique ambiance. In addition, the project calls for a restaurant, bar, and meeting rooms for up to 100 people. Old Town Hotels is requesting $240,000, which includes facade acquisition Total project cost (including acquisition) is approximately $6,000,000, with 95% of costs being incurred by the owners. Of this amount, $2,300,000 is the total added taxable value. This investment will provide an approximate total of $288,000 in tax increment ($2,300,000 x commercial multiplier of .29 x the mill levy of .096539). This property is projected to begin generating increment in 2002 and supply $64,000 for 4 %2 years. The project will also be applying for fiuiding from the Colorado Historical Society and State Historical Fund. Parking for the project is a concern. Although the current parking is not adequate, the development plan references current negotiations taking place to alleviate this situation As noted in the packet the DDA, City Plan, and the Downtown Plan have all called for this type of project as a positive influence for the future of downtown. Given the positive impact of such a facility renovation, DDA participation seems to be appropriate. ddoMWNTOWN DEVELOPMENT AUTHORITY 19 OLD TOWN SQUARE, SUITE 230 Telephone (970) 484-2020 FORT COLLINS, CO 80524 Telefax (970) 484-2069 To: DDA Board of Directors From Jay Date: April 1, 1 9 Re: Mulberry/Lemay Crossing On April 6, 1999 the Mulberry/Lemay Crossing project comes before the electorate for a decision. Developer Mark Goldberg, has signed a Letter of Commitment for the annexation of the Property, which to date, the DDA Board has not directed the Chair to sign. As this election nears, DDA has been referenced as a financial beneficiary of this project in at least two separate editorials printed in the Coloradoan. In essence, due to the unsigned Annexation Agreement, the Developer has no such obligation to the DDA. In previous meetings, the Board has discussed the financial impact to the Authority should this Project be built. The question is: Does the Board of Directors wish to enter into this Agreement to be assured the Developer follows through with the annexation process in the event it is confirmed by the voters? adoan, Sunday, March 21,1M, Ei. Crossing ��� project benefits r downtown I support the Mulberry/Lemay Crossing Shopping Center with its Wal-Mart Supercenter. Fin not par� ularly a fan of Wal-Mart, but I --am committed to fairness in administer- ing land -use processes and foresight in planning for healthy oommunities and neighborhoods. It's important to re member that the eco nomic well being of downtown Fort Collins is not ger- mane to the land -use JIm criteria used in deter- �fisReidhead bo�p Soapbox However, since the is- sue is a central theme of public discussion, I offer..a different perspective for considera- tion. Mulberry/Lemay Crossing pro- vides an opportunity for much -needed collaboration and innovation. Since 1972, I've had the pnvflege to work with many dedicated people on critical downtown projects My experi- ences in downtown Fort Collins have shaped my thoughts on the Wal-Mart project. I oo-fouaded The Cupboard,, a small housewares and gift store; owned and renovated historic com- mercial buildings, helped establish and served as a board member of the Downtown Development Authority; was responsible for the restoration.of historic buildings as a member of the Historic Old Town Square construc- tion management team; helped create the Poudre River Trust, the publictpri- vate partnership that deals with the river corridor, and lived in Old Town for 10 years in a renovated historic building on Linden Street. I now live on West Mountain Avenue, 10 blocks from the center of downtown. Here's why I supjj�1Ort the Mulbei- ry�may Crossing snoppmg center: N.M. ulberrylLemay Crossing, with • its Wal-Mart Supercenter, will most likely complement — not com ''is against — downtown. Neither DDA nor the Downtown Business Associa- tion has spoken against MUlberrY/LsmaY Crossing. That is no surprise. The Mulbarry/Lemay Cross- ing shopping center will be moat everything that downtown is not: the goods the Wal-Mart Supercenter will carry are not, for the most part, the same as the goods and services pro- vided by downtown retailers. Down- town is eclectic, peculiar, historic and barely accommodates the automobile. The character of Mulberry may Crossing will be different. Because df these differences, a synergistic 'yela- tionship between downtown and. Mul- berry/Lemay Crossing is likely. I tmgt the marketplace: if downtown contin- pes to do what it does best, it will thrive — and the rest of the communi- ty will be the better for it. ■ Four new affordable housing MCI - sets with more than 1,000 units h6V.e been approved in the area close to Mulberry/Lemay Crossing. Affordable shopping near affordable is a worthy goal. The Mulberry/Lemay Crossing developer, Mark Goldberg, has committed to participating in pro- viding free,.convenient shuttle service to these new communities and.; to downtown. These are good ideas. ■ Goldberg made another signif- cant commitment last summer, with a binding legal contract to voluntarily annex into the DDA district and -to pay property tax increment and ad- ministrative assessments. Once an- nexed into the DDA district, Mulber- ry/Lemay Crossing will bring in ap- proximately $1 million annually in Property tax increment and about $40,000 annually in new administea- tive revenues — for the next 26 years. That's $26 million that can be used for public improvements within the DDA district. It will leverage a lot more pri- vate investment. There is also the pos- sibility of raising additional money for public improvements through collec- tion of the project's sales tax incoe ment. Perhaps this is a way to help fund the Poudre Riverwalk, which in a recent Fort Collins Area Chamber of Commerce poll, was supported by 68;7 percent of the 674 active voters polled. I've had the good fortune of being involved in downtown for some time now. I choose to spend my time and energy working to create new collabd- rations and partnerships. Voter ap- proval of the Mulberry/Lemay Cross- ing shopping center with the Wal- Mart Supercenter can provide many benefits to our downtown, our Poudre River Corridor and our entire commu- nity. Jim Reldhead lives In Fort Collins. AS, OPINION, The Cobraoosn, Tueswv, uwrcn w, ,car Lemay project must proceed You don't mange the roles in midstream. The Comudoan editorial board restates its opinion that the Mulber*AAmgyCrossing prcj- qct should be allowed to proceed. �; pThheo�ed'bfe�veloper of this project has met his re- 8nes. lhededevelopby �er,e�Mark half has sto stringent City pent nearly four years and almost a half -million dd- Ian negotiating the development process in Fbrt gam city staff recommends ben Oar approval. -The developer has vowed to spend V.7 million aaqq stieat improvement; the pnaeat will not<bout $1 million in property tax inurement once it Is annexed into the Downtown Development Authority, a shuttle bus to Old lbwn will be vided; the buildings have been nderigued W more closely reflect Fort Collins; and the prgect is expected to produce less runoff than the aoen- field it is nplardvg. MY officials had PreviouslY recommended that Goldlierg considerbuilding the Big Hex pnpecf on the MulbenyA smay site as an alternative to the Harmony Road corridon Yet, the Fort Conine Planning & Zoning Board rejected the prcpd 4-3 based on broader, imdis- tind concorns that could be applied — unfiddy, in our opinion — to halt nearly any proposed commercial development. That is called Changing the rules in midstream. This project does include an emotional flash - point — a 192,000-square-foot Wal-Mart Super - center. Project opponents criticize Wal-Mart busi- ness practices. We say let the free market — not nebulous decisions — dedde if Wal-Mart can succeed here. Those who don't can for Wal-Mart can wield their own consumer power by not shop- ping at the site and urging others to do the same. This is not a unanimous endorsement by the CoWndoan editorial board. Those opposed be- lieve the project will adversely affect the Poudre River with runoff and that the P&Z Board and City Council appropriately followed the process by rejecting the project based on traffic, flood - plain and environmental concerns. On a related note, it is troubling that such a wide berth in interpretation of land -use rules ex- ists between city staffand the Planning & Zoning Board. Neither should act as rubber-stamp for the other, nor should such a chasm exist that leaves the city vulnerable to lawsuits over this and future developments. Laud use issues, in general, should not be determined by referen- dum, but this rift between city staff and appoint- ed officials has created a political nightmare. Fol- lowing this election, city officials must work to ensure that this disparity is addressed through clear, stated policy. But don't change the Hiles in midstream. Vote for the Ismay/Mulberry Crossing project. ddoAl7WNTOWN DEVELOPMENT AUTHORITY 11 19 OLD TOWN SQUARE, SUITE 230 Telephone (970) 484-202C FORT COLLINS, CO 80524 Telefox (970) 484-206; To: DDA Boardirectors From: Jay Hardy Date: April 1, 1999 Re: Northern Hotel Update At the March 1999 meeting of the Board of Directors, the DDA received a request from Funding Partners for $500,000 for the renovation of the Northern Hotel. During the meting, the Board approved a total participation of $331,000. This amount is equal to the projected tax increment from the project. On March 18, 1999 Chip Steiner and I attended a City of Fort Collins Finance Committee meting at which time this project was discussed. In the course of the meeting, the Finance Committee agreed to contribute $670,000 to this project. The combined contributions of DDA and the City complete the total funding requested from these two entities. In addition, the Finance Committee directed City staff to research the issue of development versus redevelopment fees, as it relates to this project. The contract between the developers and current owner was executed on March 5, 1999 as anticipated. Applications for a grant from the State Historical Society and housing tax credits are now being finalized.