HomeMy WebLinkAboutDowntown Development Authority - Minutes - 03/04/1999T1
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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.