HomeMy WebLinkAboutDowntown Development Authority - Minutes - 02/11/1999dbwNrowry •
DEVELOPMENT
ddoAUTHORITY
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 liaison 484-2020 (W)
MINUTES OF FEBRUARY 11, 1999
REGULAR MEETING
The Board of Directors of the Downtown Development Authority met in regular
session at 7:30 a.m. on February 11, 1999 in the Board 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
Margaret Brown
John Pitner
STAFF Chip Steiner, Consultant
Anne Garrison
Lucia Liley, Counsel
GUESTS
CALL TO ORDER
APPROVAL OF
MINUTES
Douglas Gennetten, Darin Atteberry
Mr. Allard called the meeting to order at 7:35 a.m. and roll call was taken.
Mr. Meadors moved to adopt the minutes of January 14, 1999 as written, this
was seconded by Mr. Stroud and carried unanimously.
DDA MINUTES • •
PAGE 2
251 LINDEN STREET In reintroducing this project to the Board, Mr. Steiner referred to the October
motion tabling a decision until the appropriation of funds had been approved
by City Council.
The request by Douglas and Renita Gennetten is for $20,000. DDA
participation fits within the guidelines of 10% if the whole project is completed.
Mr. Gennetten indicated he was experiencing some delay with the bidding
process. Mr. Atteberry offered to check into it.
The building is to be completed in two phases, the timeline being as follows:
Phase 1.................................... End of 1999
Phase 2 ..........................(earliest)... End of 2000
There was discussion about splitting participation to correspond with the
end of each phase, and the Board was reminded that monies being paid in 2000
would have to be reappropriated by City Council.
Mr. Belcher moved that funds be provided at the end of Phase 1, in the amount
of $10,000 with a further $10,000 being appropriated for Phase 2, at a later
date. The latter to be conditional upon reappropriation. In addition, the
applicant must return within two years, or reapply for the $10,000 balance.
This was seconded by Mr. Meadors and carried unanimously.
PASSARIELLO Mr. Steiner committed himself to the pursuit of a fitting tribute for Debra
MEMORIAL Passariello, until such time as the new Executive Director is installed. The
memo contained in the packets offers some of the ideas being considered.
CONSULTANT'S The Board confirmed that Mr. Steiner's month to month contract with the DDA
CONTRACT stands without need for further action on the part of the Board.
PARKING ISSUES Ms. Brayton raised the problem of all day employee parking on College Avenue
in particular, the resulting impact on merchants and the lack of space for
customer vehicles. Again, Darin Atteberry agreed to look into the matter.
OTS MAINTENANCE Messrs. Belcher and Slezak reported on a meeting they attended together with
John Fischbach to discuss maintenance and other issues pertaining to Old Town
Square. It was proposed that the City undertake the responsibility for the
maintenance of Old Town Square, together with the general downtown area. It
was evident that the City's vision incorporated the upcoming Civic Center
Building. Old Town Square Property Management offered to pay $50,000 per
annum toward maintenance costs, and this is the proposal currently on the
table. Mr. Steiner suggested a contractual connection be made between City
maintenance and the level of POTS property tax liability.
EXECUTIVE SESSION At this juncture, there was a motion made by Mr. Meadors, seconded by Mr.
Belcher that the Board adjourn to Executive Session for the purpose of
discussing personnel issues.
Emerging from Executive Session, Mr. Slezak made a motion to schedule a
second interview for the two finalists, Dan Guimond and Jay Hardy, at which
time the full Board will participate and make a decision. References are to be
checked for both candidates.
DDA MINUTES
PAGE 3
The motion was seconded by Mr. Wanner and carried unanimously.
It was requested a special meeting be convened for Wednesday February 17,
1999 beginning at 5:30 p.m. and allowing one hour for each candidate.
ADJOURN There being no further discussion, the meeting adjourned at 9:25 a.m.
Jason Meadors, Secretary
dtwNrowry •
DEVELOPMENT
AUTHORITY
19 OLD TOWN SQUARE, SUITE 230
FORT COLLINS, CO 80524
TO:
DDA Board of Directo
FROM:
Chip Steiner CJ
DATE:
March 4, 1999
RE:
Anne Garrison Contract
Telephone (970) 484-2020
Telefax (970) 484-2069
Anne Garrison's contract runs March to March and is due for renewal. Ms. Garrison's
compensation history with the DDA is as follows:
1995 Salary--$25,000
Benefits $6,250
1996 Salary--$26,249 (+5%)
Benefits--$6,563
1997 Salary--$27,247 (+5%)
Benefits--$6,900
1998 Salary $28,200 (+3.5%)
Benefits $7,038
With the change to a full time, "in-house" executive director, Ms. Garrison can expect increased
responsibilities and work load. Furthermore, through the past year and especially in the last
quarter of the year, Ms. Garrison has provided outstanding service to the Authority as it searched
for a new director. Together, these suggest a 7.5% increase in compensation to be appropriate.
This would bring Ms. Garrison's salary to $30,315 and her benefit package to $7,565.
The Board may wish to consider changing Ms. Garrison's contract to conform to the DDA's
budget year (which is the calendar year). To do so, the contract presently under consideration
should be renewed for a ten month period and a new contract considered at the end of 1999.
Two other changes to the contract:
1. It includes the addition of a clause providing for DDA payment of a parking permit in
the Remington Parking Garage. The Authority already pays for this but it is being
made a part of the contract.
2. It specifically states that the employee works under the supervision of the executive
director.
Although the approved 1999 budget does not include an allowance for a 7.5% increase in Ms.
Garrison's salary, it can accommodates the change.
For use both with this item and for the executive director's contract consideration an estimate of
a revised budget resulting from the changes in DDA management looks like this (only changes
are noted. The "+" means increased expenditures; the ` -" means a decrease in expenditures;
therefore, the negative net change means projected expenditures for the year have been
reduced —this is good).
Was
Will be
Total chana
Cummulative
Personal Services
36,215
94,742
+58,527
58,527
Contractual Services
Mileage
0
2,400
+ 2,000
60,527
Contractual Labor
85,000
14,000
- 71,000
-10,473
Office Rent
4,032
6,032
+ 2,000
- 8,473
Meals
350
1,000
+ 650
- 7,823
Commodities
2,150
2,560
+ 410
- 7,003
Capital Outlay
100,000
104,000
+ 4,000
- 3,003
Net change
All changes were pro rated based on the remaining 10 months of 1999.
- 3,413
EMPLOYMENT CONTRACT
THIS AGREEMENT, is made and entered into this 4th day of March 1999 between the
Downtown Development Authority of Fort Collins, hereinafter referred to as "DDA" and Anne J.
Garrison, hereinafter called "EMPLOYEE", pursuant to these terms and conditions:
WHEREAS, the DDA wishes to employ the services of Employee as DDA
Administrative Manager, and the Employee wishes to provide her services to the DDA in that
capacity; and
WHEREAS, the DDA and Employee desire to provide for certain procedures, benefits
and requirements regarding the employment of Employee by the DDA.
NOW, THEREFORE, for and in consideration of the mutual covenants and promises
herein contained, the DDA and Employee do hereby agree to the following:
1. Scope of Services
The DDA agrees to employ the Employee as DDA Office Manager and the
Employee agrees to perform all functions and duties as specified in the job
description attached hereto as Exhibit "A" and incorporated herein by reference.
The Employee shall work under the direct supervision of the DDA Executive
Director.
2. Compensation
Commencing March 4, 1999 Employee shall be compensated at the rate of
$1,165.96 bi-weekly, (plus reimbursement for actual approved expenses.). All
payments shall be made bi-weekly for the remainder of the contract term.
Employee shall maintain and submit to the DDA a log of all hours worked and all
approved expenses incurred prior to any payment.
3. Term of Employment
A. The term of this agreement shall be from the date of execution hereof to
and including
B. Nothing contained herein shall preclude renegotiation of this Agreement
prior to the expiration of its term.
C. It is understood and agreed to by the Employee that upon termination of
this Agreement, either under this paragraph or under the provisions of
Paragraph #4 hereof, the Employee shall not be entitled to any amount of
additional compensation, as severance pay or otherwise, other than as
provided in Paragraph #4 and #6 of this Agreement.
4. Early Termination
Either parry may terminate this Agreement without cause prior to the expiration of
the term hereof, by providing written notice of termination to the other party at
least thirty (30) days prior to the date of early termination. Such notice shall be
deemed effective as of the date of deposit into the United States mails, postage
prepaid, addressed as follows:
EMPLOYEE
Anne J. Garrison
2260 Hiawatha Court,
Fort Collins, CO 80525
EMPLOYER
DDA Executive Director
19 Old Town Square, #230
Fort Collins, CO 80524
5. Insurance Coveraee
The DDA through the City shall make available to the Employee the same
Flexible Benefit plans, along with long term disability and access to the Employee
Assistance Program, for the Employee and dependents as provided under group
plans for classified City employees.
6. Vacation, Holidays, Sick Leave, Retirement, Other Leaves/Benefits
A. Vacation is earned and credited bi-weekly at a rate based on the number of
year's service with the DDA. Approval and timing of vacation shall be
determined by the DDA Board of Directors with due consideration to the
wishes of the employee and the needs of service.
Vacation leave may be taken as earned in accordance with Exhibit "B".
Employee will normally take vacation leave within one calendar year from
the day earned. In no case may employee use more leave than earned.
The employee may carry up to twice the amount of the December 31 st
vacation accrual rate up to a maximum of thirty (30) days from one
calendar year to the next. The employee will forfeit vacation leave in
excess of this amount without compensation unless the DDA Board of
Directors grants an extension.
B. Employee shall be entitled to the following nine (9) paid holidays if
employed under the terms of this contract when they occur: New Year's
Day, Martin Luther King Day, President's Day, Memorial Day, 4th of
July, Labor Day, Veteran's Day, Thanksgiving and Christmas, plus two (2)
floating holidays.
C. Employee shall be granted up to ninety (90) days of sick leave in any
twenty four (24) month period. As a new hire, employee shall receive
fifteen (15) days during the first six (6) months. Employee shall not be
granted sick leave until after the first thirty (30) calendar days of
employment. Employee shall be permitted to use sick leave in the same
manner which a City classified employee is permitted to use sick leave.
D. Upon termination of employment pursuant to the contract, Employee shall
be entitled to receive compensation for any unused vacation leave;
however, Employee shall not be entitled to any compensation for unused
sick leave.
E. In lieu of Social Security, DDA will contribute 6.05% of gross annual
salary into a 457 deferred compensation plan.
F. Employee is eligible to participate in the Dental Reimbursement Plan in
the same manner as a City Classified employee.
G. Employee may be granted up to five (5) working days annually to care for
immediate family members (see below) living in her home in cases of
major or minor illnesses, childhood diseases or injuries. Guidelines for
use of dependent care leave are as follows:
* Birth or surgery: One (1) day emergency leave if birth or a surgery is on
a scheduled working day; then up to five (5) days dependent care leave if
care is required upon release from hospital.
* Childhood diseases, Injuries and illnesses. Up to five (5) days
dependent care leave.
Immediate family is defined as: mother, father, spouse, stepmother,
stepfather, foster mother, foster father, mother in law, father in law,
daughter in law, son in law, grandmother, grandfather, sister(s) brother(s)
child(ren) , or any other relative actually living in the same household.
H. Employee shall be entitled to one hundred and twenty (120)hours of paid
military leave in the same manner which a City classified employee is
permitted to use military leave.
0
I. Employee may be granted leave with full pay when performing jury duty
or when required to serve as a subpoenaed witness in any municipal,
county, state, or federal court, or before an administrative tribunal.
J. Employee will be eligible for Emergency Leave, Injury Leave and
Worker's Compensation in the same manner which a City classified
employee is eligible.
K. Employee will not be eligible for the General Employee Retirement Plan
(GERP) or for tuition reimbursement.
L. DDA shall pay for one parking space in the Remington Street Parking
Garage for the period of this contract.
7. Anplicabiity of Personnel Policies
The Personnel Policies and Practices of the City shall not be applicable to the
Employee or this Agreement.
8. Default
Each and every term and condition of this Agreement shall be deemed to be a
material element of this Agreement. In the event either party shall fail or refuse to
perform according to the terms of this Agreement, such parry may be declared in
default thereof.
9. Remedies Upon Default
In the event a party has been declared in default hereof, such defaulting party shall
be allowed a period of five(5) days within which to cure said default. In the event
the default remains uncorrected, the party declaring default may elect to: (a)
terminate the Agreement and seek damages; (b) treat the Agreement as continuing
and require specific performance; or, (c) avail him/her of any other remedy at law
or equity. In the event the Employee fails or neglects to carry out the work in
accordance with the Agreement, the DDA may elect to make good such
deficiencies and charge the Employee therefor. In the event of default of any of
the agreements herein by either party which shall require the party not in default
to commence legal or equitable actions against the defaulting party, the defaulting
party shall be liable to the non defaulting party for the non defaulting party's
reasonable attorney's fees and costs incurred because of the default.
10. Proprietary Ri is
The DDA shall retain ownership of and the right to reproduce market, license, or
otherwise distribute any program or material produced by the Employee under the
terms of this Agreement.
11. Entire Agreement
This writing constitutes the entire agreement between the parties hereto.
12. This Agreement shall be binding upon the parties hereto and the heirs, successors
and assigns of each respectively.
ATTEST:
Jason Meadors, Secretary
DOWNTOWN DEVELOPMENT AUTHORITY
OF THE CITY OF FORT COLLINS, COLORADO
Kermit Allard, Chairman
Employee
Anne Garrison
D�IWNTOWNdda
�
DEVELOPMENT AUTHORITY
19 OLD TOWN SQUARE, SUITE 230
FORT COLLINS, CO 80524
TO:
DDA Board of Dire rs
FROM:
DATE:
Chip Steiner
March 4, 1999
RE:
Executive Director Contract
Telephone (970) 484-2020
Telefox (970) 484-2069
The DDA executive director's contract requires Board approval. The basic terms of the contract,
which is attached, are essentially the same as the DDA has always used. Only the following
terms have been adjusted specifically for the agreement with Mr. Hardy:
1. Salary is $55,000
2. DDA contribution to retirement is 9% of base salary
3. DDA provides a parking space as a benefit to the employee
4. The contract length is 10 months to keep it in sync with the DDA budget year.
Subsequent contracts will be for a full year.
EMPLOYMENT AGREEMENT
THIS AGREEMENT, made and entered into this _ day of March, 1999 by and between
the DOWNTOWN DEVELOPMENT AUTHORITY OF FORT COLLINS, hereinafter called
"DDA" or "Employer", as party of the first part, and Jay Hardy, hereinafter called "Employee",
as party of the second part, both of whom understand as follows:
WITNESSETH:
WHEREAS, DDA desires to employ the services of said Jay Hardy as the Executive
Director of the Downtown Development Authority of Fort Collins; and
WHEREAS, it is the desire of the Downtown Development Authority Board of Directors
to provide certain benefits, establish certain conditions of employment and to set working
conditions of said Employee; and
WHEREAS, Employee desires to accept employment as Executive Director of said Fort
Collins Downtown Development Authority.
NOW, THEREFORE, in consideration of the mutual covenants herein contained, the
parties agree as follows:
Section 1. Duties. Employer hereby agrees to employ Jay Hardy as Executive
Director of said DDA to perform those duties necessary and appropriate
for the management of the DDA and to perform other legally permissible
and proper duties and functions as the DDA shall from time to time assign.
Section 2. Term.
A. This Agreement shall commence on the 1 st day of March, 1999 and
terminate on December 31, 1999 unless otherwise terminated as set forth
herein.
B. Employee agrees to remain in the exclusive employ of the DDA during the
term of this Agreement, and neither to accept other employment nor to
become employed by other employer until said termination date, unless
said termination date is affected as hereinafter provided. The term
"employed" shall not be construed to include occasional teaching, writing,
consulting or military reserve service performed on Employee's time off,
which endeavors shall not interfere with Employee's duties hereunder.
C. Not less than 60 days prior to termination of this Agreement, DDA shall
advise Employee of its desire to employ Employee for an additional one
year term commencing on the expiration of the term of this Agreement. If
DDA desires to retain Employee as Executive Director, DDA shall advise
Employee at least 60 days prior to termination of this Agreement of the
proposed terms of continued employment and Employee shall within 10
days of receipt of said terms accept or reject said offer.
Section 3. Termination and Severance Pay.
A. Employer may terminate this Agreement upon delivery of notice of
termination to Employee. In such event, Employer shall pay Employee a
lump sum cash payment equal to two (2) months salary provided that
Employee shall not be entitled to any such severance pay if Employee is
terminated for cause or for failing to fulfill his duties and obligations
hereunder.
B. Employee may terminate this Agreement by delivery to the Chairman of
the Employer written notice of such termination. Such notice shall be
given forty-five (45) days in advance of such termination, unless parties
hereto otherwise agree.
Section 4. Salar . Employer agrees to pay Employee for his services rendered
pursuant hereto an annual base salary of $55,000.00 (Fifty Five Thousand
Dollars and zero cents), payable in installments at the same time as other
employees of the Employer are paid.
In addition, Employer agrees to increase said base salary and/or other
benefits of Employee in such amount and to such extent as the Board may
determine that is desirable to do so on the basis of an annual salary review
of said Employee.
Section 5. Performance Evaluation.
A. The DDA Board or its representatives shall annually or more often if
Employer desires, review and evaluate the performance of the Employee.
Such evaluation shall be prior to decision by DDA to continue
employment of Employee. The Chairman shall provide the Employee
with a written summary statement of the finding of the Board and provide
an adequate opportunity for the Employee to discuss his evaluation with
the Board or its representatives.
B. Annually, or more often if Employer desires, Employer and Employee
shall define such goals and performance objectives which they determine
necessary for the proper operation of the Authority and in the attainment
of the Board's policy objectives and shall further establish a relative
priority among those various goals and objectives, said goals and
objectives to be reduced to writing. They shall generally be attainable
within the time limitations as specified and the annual operating and
capital budgets and appropriations provide.
C. In effecting the provisions of this Section, the Board and Employee
mutually agree to abide by the provision of applicable law.
Section 6. Hours of Work. Employee shall devote such time as is necessary to fulfill
his duties and obligations hereunder. It is recognized that Employee must
devote a great deal of time outside of the normal office hours to business
of the Employer, and to that end Employee will be allowed to take
reasonable compensatory time off during said normal office hours.
Employee shall not be entitled to any compensation for compensatory time
upon termination of this Agreement.
Section 7. Automobile and Parkine. The Employee shall furnish his own automobile
necessary to perform the functions and duties of his position and shall
receive reimbursement for automobile allowance as permitted by IRS
regulations for operation and maintenance of his own automobile when
used for official business. DDA shall provide payment for one parking
space in the Remington Street Parking Garage for so long as this
agreement is in effect.
Section 8. Vacation, Sick and Military Leave.
A. The Employee shall receive ten (10) days of vacation leave which shall be
used during the term of this Agreement or within forty-five (45) days
thereafter.
B. The Employee shall be credited with ninety (90) working days of sick
leave which may be used during any twenty-four (24) month period of
employment with Employer.
C. Upon termination of employment by either party pursuant to this
Agreement, Employee shall be entitled to compensation for all accrued
vacation; however, Employee shall not be entitled to compensation for
accrued sick leave.
Section 9 Disability, Health and Life Insurance.
A. Employer agrees to put force and to make required premium payments for
Employee for insurance policies for life, accidental death,
dismemberment, and long-term disability and major medical coverage
group insurance covering Employee and his dependents, which policies
are issued under the auspices of the City of Fort Collins. Any such
insurance policies required hereunder shall provide the same benefits to
Employee (and Employee's dependents) as are provided to employees of
the City of Fort Collins through the City of Fort Collins' insurance
program. Employer agrees to provide dental insurance to the extent
possible within the budgeted funds for said insurance coverage and the
extent possible under the terms of Employer's dental insurance carrier.
u
B. If directed to do so by Employer, Employee shall submit once per calendar
year to a complete physical examination by a qualified physician selected
by the Employer, the costs of which shall be paid by the Employer.
Employer shall receive a copy of all medical reports related to said
examination.
Section 10. Retirement. Employer agrees to execute all necessary agreements
provided by the International City Management Association Retirement
Corporation (ICMA-RC) for Employer's participation in said ICMA-RC
retirement plan. In addition to the base salary paid by the Employer to
Employee, Employer agrees to pay an amount equal to 7.65 percent
($4,207.50) of Employee's base salary into the ICMA-RC on Employees
behalf in equal proportionate amounts each pay period, and to transfer
ownership to succeeding employers upon Employee's resignation or
discharge, if Employee so desires. Employee may contribute his own
funds to ICMA-RC retirement plan as he, at his sole discretion, may
desire.
Section 11. Dues. Subscriptions and Professional Development.
A. Employer agrees to budget and to pay for the professional dues and
subscriptions incurred by Employee within such budget necessary for his
continuation and full participation in national, regional, state and local
associations and organizations necessary and desirable for the good of the
Employer.
B. Employer hereby agrees to budget for and to pay the travel and subsistence
expenses incurred by Employee within such budget for professional and
official travel, meetings, and occasion adequate to continue the
professional development of Employee and to adequately pursue necessary
official and other functions for Employer and such other national, regional,
state and local governmental groups and committees thereof which
Employee serves as member.
C. Employer also agrees to budget and to pay for the travel and subsistence
expenses incurred by Employee within such budget for short courses,
institutes and seminars that are necessary for his professional development
and for the good of the Employer.
Section 12. Civic Club Membership. Employer recognizes the desirability of
representation in and before local civic and other organizations, and
Employee is authorized to become a member of such civic clubs or
organizations, for which Employer shall pay all expenses within those
amounts budgeted by Employer for the same. Employee shall report to the
Employer on each membership that he has taken out at Employer's
expense.
Section 13. General Provisions.
A. The text herein shall constitute the entire agreement between the parties.
B. This Agreement shall be binding upon and inure to the benefit of the heirs
at law and executors of the Employee.
C. If any provision, or any portion thereof, contained in this Agreement is
held unconstitutional, invalid or unenforceable, the remainder of this
Agreement or portions thereof, shall be deemed severable, shall not be
affected and shall remain in fill force and effect.
D. The terms and conditions hereof shall apply upon execution of the parties.
IN WITNESS WHEREOF, the Downtown Development Authority of Fort Collins,
Colorado has caused this Agreement to be signed and executed in its behalf by the Chair, and
duly attested by its Secretary and the Employee has signed and executed this Agreement, both in
duplicate, the day and year first above written.
ATTEST:
Secretary
DOWNTOWN DEVELOPMENT AUTHORITY
OF THE CITY OF FORT COLLINS, COLORADO
Chair
Jay Hardy
dda6wNTOWN •
DEVELOPMENTAUTHORI
TY
19 OLD TOWN SQUARE, SUITE 230
FORT COLLINS, CO 80524
TO:
DDA Board of
FROM:
Chip Steiner
DATE:
March 4, 1999
RE:
Northern Hotc.
Telephone (970) 484-2020
Telefax (970) 484-2069
Enclosed is a packet of information which spells out in some detail the redevelopment of the
Northern Hotel.
The developer is Funding Partners for Housing Solutions and the National Development
Council. The purchase contract is to be signed March 5. Hard cost investment in the project is
estimated at almost $6 million. The building is to be renovated to its 1936 Art Deco appearance.
Street level will remain in commercial use. Upper floors will be affordable housing targeted for
seniors. The development partnership is looking to the DDA for about 10 percent of the hard
cost investment or $500,000 to $650,000.
Based on a straight tax increment deal, the project would support a DDA investment of between
$265,000 and $331,000. This figure is arrived at as follows:
Investment generating a tax increment:
Tax multiplier
Mill levy (approx.)
Tax increment generated
Commercial Residential
$6,000,000 $1,200,000 $4,800,000
.29 .08
$ 348,000 $ 384,000
.0905 .0905
$ 31,494 $ 34,752
Total annual tax increment: $31,494
34,752
$66,246 over four years = $265,000
over five years = $331,000.
As noted, the request from Funding Partners for upwards of $650,000 is significantly higher
than what can be supported by the projected tax increment from the project. The Board also
needs to be aware that the City of Fort Collins is urging DDA participation at the $500,000 level
(which has the net effect of reducing the City's level of participation). In other words, this
project is important.
The City has also pointed out that the DDA has $300,000 available to it from its previous
commitment to the Horticultural Center which it could now divert to the Northern. First, this is
not quite true since City Council hasn't yet formalized the decision to put the Center behind the
Holiday Inn —although the outcome isn't in doubt. Jay Hardy expressed some reluctance to re-
programming the $300,000 until the decision on the Horticultural Center is made official. I
concur with this. Second, I believe it should be for the DDA to determine how the $300,000 is
reprogrammed. That money was set aside for a public project that would have brought a
wonderful and unique attraction into the central business district. Such a future purpose for the
funds may yet emerge and it makes sense to set the monies aside for some other non -tax
increment project.
Nevertheless, redevelopment of the Northern is obviously important. Therefore, I suggest the
Board consider a level of contribution higher than what is supportable by the increment
generated by the project itself. However, because the City is urging the DDA to increase its
level of participation beyond what can legitimately be supported with the tax increment, because
increased DDA participation reduces City participation, and because City development fees
(upon an existing property with existing improvements, with existing roads around it, with
existing water and existing sewer lines serving it and with a 100 years' worth of property taxes
already collected to pay for these "costs of growth") completely offset supportable tax increment
participation ($331,000 in supportable tax increment debt vs. $376,772 in development fees), it
seems reasonably fair to ask that City funds, not tax increment funds, guarantee any potential
shortfall in debt service requirements. In other words, if this property doesn't generate enough
property tax to pay for the agreed -upon level of DDA participation, the City be the financial
backstop, not downtown -generated tax increment.
A DDA commitment at this time is important to the other funding programs being sought by the
development team. Historic preservation grant applications are due April 1. A DDA
commitment will help leverage that request. The affordable housing tax credit application is due
April 4. The DDA commitment will also help leverage that application.
One last thing: restoring the Northern Hotel would be a significant milestone in the
redevelopment history of downtown Fort Collins. The credit for this lies with Funding Partners
and especially its Executive Director, Karen Gerard. Without her tenacity, patience, and creative
financing the complex pieces of this puzzle would never have been brought together, much less
assembled into a doable plan.
FUNDING PARTNERS FOR HOUSING SOLUTIONS
maliaa a!<ahvalle 1,?#eo is art!/%la roleeade
March 1, 1999
Downtown Development Authority
10 Old Town Square
Fort Collins, Colorado 80524
Dear DDA Board Members:
I am writing to request DDA funding of a project which has been of great interest to the City of Fort
Collins for a number of years: The renovation of the Northern Hotel.
As you are aware, the building burned in the 1970's and has been partially condemned and vacant since
that time. The following proposal, requesting DDA participation in the amount of $500,000 - $650,000
will cover approximately one half of the actual cost of the restoration of the facade and public lobby por-
tions of the building, or approximately 10% of the hard costs of the overall project.
Sufficient DDA funding will ensure the uncompromised quality of the building's restoration.
Timely commitment of funding will significantly assist the Development Team in leveraging private,
state and federal dollars, which comprise the vast majority of project funding.
Thank you in advance for your favorable consideration of this request. We are most anxious to work
with the DDA to bring this exciting project to successful fruition!
Sincerely
Karen G and
Executive Director
301 EAS"F SRI'WAY DRIVE FOR'ICOLLINS, C01.ORA1)O 90525 • VAIL 10: P.O. BOX 2731 LOVELA%D, COLORADO) 80J39 • 970. 204. 1400 FAA: 970, 204. 1475
Project Description:
Funding Partners for Housing Solutions and the National Development Council (NDC), form the
Development Team working to redevelop the Northern Hotel, located at 172 North College Avenue in
Fort Collins.
The building burned in the 1970's resulting in portions of the building being condemned. The majority
of the building's square footage is vacant, much of it in serous disrepair. The proposed redevelopment
plan calls for the following features:
1. Historic renovation of the building to its 1936 Art Deco facade (see attached historic
architectural drawings).
2. Designation of the first floor of the building, 13,800 square feet, for Commercial Retail use.
Both College Avenue and Walnut Street sides of the building will have restored storefronts.
3. Designation of the renovated lobby as public space.
4. Designation of the top three floors of the building for rental housing units. Forty-seven
apartments will be created: 6 efficiencies, 38 one bedrooms and 3 two bedroom units. Rents
will range from approximately $375-$480 making them ideal for senior citizen occupancy. The
funding sources identified for this project require professional management of apartment units
and 'a minimum $300/unit/year Replacement Reserve. These measures are required to protect
investor equity in the project. Including 7,500 square feet of basement storage/laundry space,
and the new addition described below, a total of 43,100 square feet is designated as residential.
5. Construction of a new 4400 square foot addition to the third and fourth floors of the hotel,
joining the "V" shaped building into a triangle. This addition will house 8 of the 47 apartment
units and will allow for a single roof over the entire hotel. This design innovation will solve
complex energy and drainage problems, create an atrium/courtyard into which interior apartment
units will look, and allow for natural lighting of the stained glass dome on the lower level.
Developer/Contractor
Funding Partners for Housing Solutions and the National Development Council (NDC), both 501(c)(3)
non profit organizations, form the Development Team working to redevelop the Northern Hotel. The
NDC is recognized nationally as one of the leaders in the development of quality affordable housing
using Housing Tax Credits and other public funds. NDC presently owns and manages in excess of 500
units. Funding Partners has focused its efforts on the financing of development and redevelopment of
affordable housing and has the necessary local contacts and resources to implement a successful project.
The Development Team has obtained the services of Richard Beardmore of AE Design and Mark
Thorbum of University Designers and Builders to prepare rehabilitation cost estimates and assist in the
selection of a qualified General Contractor. These entities have significant experience in the design and
construction management of both housing and historic renovation projects.
Danter Company, a nationally recognized market research firm, is in the process of completing a market
study affirming the market for the proposed housing units.
Site Control
Negotiations for the acquisition of the building have resulted in agreement on the terms of the sale. A purchase
contract is currently under attorney review, with signature required by March 5, 1999. The site is properly
zoned for the proposed project and all infrastructure is in place including street paving, curb and gutter,
sidewalks, water, sewer, gas, electric, cable and telephone service. In addition, the developer has completed a
study on the building's structural integrity and Phase I environmental mitigation measures are included in
estimated redevelopment costs.
Project Costs and Sources of Funds;
Project hard costs are estimated at $5,971,362. Of that $1,011,315 is for the rehabilitation of the building
facade and the public lobby space. Other costs are noted below.
Overall Project
Facade/Lobby
A.
Hard Costs
1.
Construction
$5,971,362
$1,011,315
B.
Soft Costs
1.
Municipal Development Fees
$ 376,745
$ 53,842
2.
Architecture & Engineering
$ 320,493
$ 83,810
3.
Contingency
$ 631,142
$ 73,679
4.
Other Expenses (construction interest; loan, legal
and developer fees; environmental review; etc)
$ 894,000
$ 101,131
5.
Soft Costs Sub Total
$2,222,380
$ 312,462
TOTAL
$8,193,742
$1,323,777
Funding for the redevelopment is projected from a variety of sources including Historic Tax Credits and grants,
Housing Tax Credits and grants, CDBG/HOME funds, Municipal grants and DDA tax increment financing.
Successful garnering of Housing and Historic Tax Credit allocations will bring approximately $4.7 million in
equity to the project. Applications for tax credit funds are in progress, being due to the state by April 2, 1999.
Execution of the purchase contract is specifically contingent upon successfully raising $2.5 million from
non -tax credit grant sources. Leveraging funds from most of these sources is dependent upon local support, so
DDA and City of Fort Collins applications are being prepared first. (Fort Collins Finance Committee will be
reviewing our request at its March meeting). Based on projected grant amounts from outside sources with
known interest in the project, the combined total of local funding required is $1- $1.3 million.
Known Source Amount
1. Colorado Historical Society $ 450,000
2. Colorado Division of Housing $ 450,000
3. Federal Home Loan Bank $ 250,000
$1,150,000
Permanent debt of approximately $2.1 million is projected, an amount which can reasonably be supported by
commercial and residential rental income.
Inclusion of funding decisions from the DDA and the City of Fort Collins will greatly enhance the projects
ability to compete for an allocation of tax credits in the previously mentioned April 1999 application round.
Insufficient local funding will require additional fund raising efforts and/or modifications in the proposed
renovation plan.
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