Loading...
HomeMy WebLinkAboutEconomic Advisory Commission - Minutes - 03/27/20131 Minutes City of Fort Collins Economic Advisory Commission Regular Meeting 300 LaPorte Ave City Hall March 27, 2013 12:30 – 1:30 p.m. For Reference: Blue Hovatter, Chair 493-3673 Council Liaison Wade Troxell Josh Birks, Staff Liaison 416-6324 Wendy Bricher, Minutes 221-6506 Commission members present: Commission members absent: Michael Kulisheck Blue Hovatter Christophe Febvre Channing Arndt Daniel Lenskold Jim Clark Sam Solt Glen Colton Ann Hutchison Guests: None Staff Present: Wendy Bricher, Minutes Josh Birks, Economic Health Director Mike Beckstead, Chief Financial Officer Agenda Item 1: Meeting called to order Meeting called to order at 11:04 a.m. Agenda Item 2: Woodward Assistance Package Mike Beckstead, Chief Financial Officer, provided a business assistance overview regarding the proposed Woodward Assistance Package. Information provided included the detailed financial assistance broken out by phases (I, II, IV), the projected Tax Increment collections, the DDA Tax Increment Assistance, financing of facades and public improvements, Use Tax rebates, fee rebates, rebate backfill, employment commitments, and risks and mitigations. A summary of the benefits was also presented including retention and expansion of Woodward, 85% of the incentives funded by the project itself, public improvements benefits, and indirect/induced benefits. Glen Colton commented that the risk of the Drake facility being unused could perhaps have a future negative consequence on property tax collections and should be included as a risk factor in the plan. It was determined that approximately 200,000 in gross collections annually could be affected if this were to happen. The EAC discussed this in more depth, and although it should be recognized as a possible risk, they felt the likelihood of this occurring long term would not be high. Christophe Febvre inquired about Financial Services 300 LaPorte Ave PO Box 580 Fort Collins, CO 80522 970.221.6505 970.224.6107 - fax fcgov.com 2 the legality of the agreement and Mike Beckstead replied that the package has been reviewed by three legal entities. Mike Kulisheck also commented that the City’s overall financial risk if the project failed would be approximately 2.3 million. It was noted however that the public improvement’s suggested would have a benefit of approximately 4 million negating some of that risk. Sam Solt commented that the primary goal is retaining and expanding a “good citizen” and supported the package as written. Glen Colton cautioned that he thinks Tax Increment Financing is used too much at the expense of Larimer County and Poudre School District. He also believes the environmental and social consequences (beyond the public benefit shown of receiving back open space and corridor improvements) need more in-depth analysis (examples; water and energy usage, impact on affordable housing, social services, etc), similar to the much improved economic analysis, in evaluating this and future incentive packages. He also stated that the Woodward project results in an increased concentration of employment in one sector as opposed to the goal of diversifying our employment base. After thorough consideration and discussion, the EAC developed the following recommendation to the Fort Collins City Council. Christophe Febre motioned, and Dan Lenskold seconded the following motion: The Economic Advisory Commission (EAC) has reviewed the business assistance package prepared for Woodward Governor and approves the package as presented. Motion passed 5-1 (nays Colton) The next meeting is scheduled on April 17, 2013 from 11:00 a.m. – 1:30 p.m. CIC Room, City Hall