HomeMy WebLinkAboutEconomic Advisory Commission - Minutes - 06/17/2015MINUTES
CITY OF FORT COLLINS
ECONOMIC ADVISORY COMMISSION
Date: Wednesday, June 17, 2015
Location: CIC Room, City Hall, 300 Laporte Ave.
Time: 11:00am–1:30pm
For Reference
Wade Troxell, Mayor & Council Liaison
Josh Birks, Staff Liaison 221-6324
Dianne Tjalkens, Minutes 221-6734
Commission Members Present Commission Members Absent
Sam Solt, Chair Linda Stanley
Kim Dale Ted Settle
Glen Colton
Ann Hutchison
Denny Otsuga
Staff Present Staff Absent
Josh Birks, Economic Health Director
Dianne Tjalkens, Admin/Board Support
Sue Beck-Ferkiss, Social Sustainability Specialist
Clay Frickey, Associate Planner
Tom Leeson, Redevelopment Program Manager
Guests
Dale Adamy, citizen
Meeting called to order at 11:02am.
Review and Approval of Minutes
Kim moved and Ann seconded a motion to approve the May minutes as presented.
Motion passed, 4-0-1. Denny abstained as he was not in attendance
Agenda Review—Affordable Housing Strategic Plan (AHSP) is scheduled for Council adoption August
18. Vine/College revitalization goes to Work Session June 23, with no follow up action by Council. Next
month will have opportunity to talk about recommendation on AHSP. Today is listening and asking
questions.
Public Comment—Dale asked for clarification on the agenda. Sam explained that the commission will
have Listen & Clarify sessions, and draft recommendations on those topics the following meeting.
Commission Member Updates—
• Regarding UniverCity Connections presentation by Josh Birks, people are interested in Clint’s
comment on Boulder’s number of high paying jobs affecting affordability. Request
updates/clarification/review at next meeting.
o Josh’s presentation provided context on labor force and challenges.
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o UniverCity Connections is sponsor for community conversations. TED-style talks
followed by table conversations. Last one is June 24.
o Members are encouraged to watch videos online: univercityconnections.org
• Logistics: Two vacancies on board. Currently without a Vice Chair. Alternate selected by Council
in last round is Kristin Owens, retired professor/higher education administration. Council will
vote to appoint her to commission July 7. She is in GMA, but not within City limits, so brings
different perspective. Josh is seeking more information on filling other seat. May happen during
normal board appointment schedule.
• Work Plan: Draft is posted on website: fcgov.com/cityclerk/economic-advisory. Josh drafted
using member input from throughout the year. Reflects new agenda process and overarching
themes of interest. High level document. Will discuss 2015 Work Plan in November/December
meetings and make changes.
• Appointing Vice Chair: Members will self-nominate via email and a vote will be held in July.
• Denny is leaving CSU Ventures. Dianne will provide commission and City Clerk’s Office with
new contact information.
AGENDA ITEM 1—Affordable Housing Strategic Plan, Sue Beck-Ferkiss, Social Sustainability
Specialist and Clay Frickey, Associate Planner
This is fourth iteration of the AHSP. Would like EAC insight into how the economy can be positively or
negatively affected by the AHSP as well as input to Council regarding support, concerns, etc. Current
inventory of affordable housing in Fort Collins is 3000 units. City strives to have high quality units,
dispersed and integrated throughout community; however, the City does not build affordable housing.
The City’s role is in policy, funding, facilitation of conversations, and regulation through code. Looking
to create a system with good options for all ages, stages, and income levels. This plan is focused on low
income: 80% AMI and below. Units have had direct assistance in being built or residents are using
vouchers. Percentage of publically supported affordable housing is about 5% of total housing inventory;
would like this to increase. Have used PABs consistently to prioritize affordable housing and fund it. Map
of affordable housing shows it is distributed throughout the community. Challenges include not enough
housing for people who need it. As vacancy rate stays low, rents push higher, which causes distress in
ownership and rental situations. We want good choices along the spectrum, with goal that renters pay no
more than 30% of income for housing and owners no more than 38%. Showed a chart of AMI and
affordable rent at each level: 30% AMI and lower is most critical need, 30-70% is workforce rental, and
70% and up is ownership. Around 80% and below need some subsidy to make affordable. 60% AMI is
good place for homebuyer assistance program, just need a little help. Habitat for Humanity goes up to
60% AMI. Land Bank program has 5 properties, with total of 51 acres. Actively looking at whether any
properties are ready for development. All were acquired with impediments. Consultants working on status
report.
Goals of the plan include increasing inventory of rental housing, preserving affordability of existing
housing, increasing special needs housing, supporting ownership, and refining incentives and expanding
funding. Need to preserve condition of existing units to maintain affordability and livability. Invest in this
stock to keep it up. Special needs: 50% of seniors have special needs. Will be seeing boom in senior
population in Larimer over next 15 years. Will need special facilities, services, etc. Develop a building
stock that allows aging in place. Fort Collins has large gap between median income and median home sale
price. Focus on home ownership opportunities, which can open opportunities for others to move up in
rental housing. Developing alternative funding sources and development incentives. Costs have increased.
Developers need to see return on investment. Recommending improving financial and non-financial
incentives. Policies asking Council for feedback on include progressive fee structure. Currently City Plan
promotes ADUs and smaller units, but code does not. Idea is to make fees more commensurate with
impact. ADUs can help people sustain homeownership, including seniors. Also being addressed through
old town neighborhoods plan since this is where ADUs have been added in the past. For preservation
looking at allowing phased improvement of existing housing that does not meet code, focusing on safety
improvements first, then others, to keep the units in stock. Right now not rehabbing because too
expensive.
Construction defect litigation: looking at remedies to this state-wide issue.
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Have researched many policies in other communities. Not recommending an inclusionary housing
ordinance (IHO). Deed restrictions do not make sense at this time. Also not recommending commercial
linkage fee (CLF) due to impact on business development.
Will continue to develop vision and metrics, do public outreach, etc.
Discussion/Q & A:
• How does someone know if they are eligible for affordable housing?
o Partners in community. Neighbor to Neighbor (N2N) at Murphy Center does housing
counseling to find out if eligible. All housing providers have that info on websites. Social
Sustainability website has HUD income limits and other information:
fcgov.com/socialsustainability.
o FRCC has many low income students. How do they find out if eligible for affordable
housing?
Send them to housing counseling at N2N.
• How is 80% AMI low income? Seems like middle class income.
o Defined in land use and municipal code this way.
o Limited supply of funding, but looking at broad range of incomes/too many people. How
does this affect ability to do anything?
This plan will focus on allocating funding resources to 60% and lower and policy
resources above that.
How many receive homebuyer assistance each year?
• Fourteen. Most of funding is being spent on lower income. HBA is small
piece of housing assistance. Proportionally funding is focused on lower
end.
• Many seniors remain independent up to 75-80 and have income to spend on services.
o We know that 51% have special needs now and have significant number of senior
households that are cost burdened. Also know that senior population is growing. Not all,
but many seniors moving into retirement either with bad health or without assets needed
to support selves.
• Surrounding communities have high home prices as well. Are they going to start pushing people
into Fort Collins for housing?
o Median income for Timnath is higher, so preference choice in housing. Wellington is
providing some affordable home ownership opportunities to Fort Collins people, unless
want to have small condo or townhome.
o One of strategies is to coordinate regional conversation. Will be addressed in plan.
o Economic Health Strategic Plan is also looking at regional conversations.
o Anecdotally people are looking at Wellington because cannot afford Fort Collins.
Building new high school. Wellington is seeing growth.
Want that to be a choice, not just because cannot find housing.
• What incentives exist in Fort Collins for builders to create affordable housing?
o Current incentives are not really working. Tax credit financing has been successful for all
categories: public and private.
o Who developed building on South College?
Fort Collins Housing Authority (FCHA), Redtail Ponds, for special populations:
formerly homeless, low income, and veterans.
Near Max, which is good design.
o Have done a great job of having high quality affordable housing projects, which keeps
rehab costs down. Indistinguishable from market rate. When rehab, get additional
affordability period due to funding sources.
• Commercial linkage fee? Cost shifting? Who do you shift the cost to? What are we afraid of
losing if have linkage fee?
o Both of non-recommended policies are considered extreme regulations for housing
systems in more stress than ours. IHOs are better for ownership and our issue is rental.
Don’t want to put policies in place that aren’t needed. CLF is hard to come up with
formulas to make it fair estimating impact of low income employees on housing. Also
adds additional costs to development community, mostly commercial. Looking for new
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businesses to come to Fort Collins; they are looking at what fees are in place. Most
surrounding communities do not have this fee.
o The standard for that fee is substantial legal standard, must have very clear nexus. Tool to
be used in extreme dysfunction of housing system. Boulder, Vale, etc. have extremely
stressed housing systems. Today could not clear the legal hurdle in implement the CLF.
Both are strategies that Council wants to understand: whether right thing to do and when.
o As we move toward build out we have to start looking at not encouraging more
businesses to move here with incentives. May need to be having fees like this. Still giving
incentives to businesses to come here. They cause impact on housing. Are we serious
about TBL or is economy number 1 and environmental and social come somewhere far
down the line.
o Last incentive package the City entertained was 18 months ago for Custom Blending.
City intervention is modest at best for assisting job creation. Less than 10 business
assistance packages since 2009. Moderated approach to using tool. Most have been for
expansion of current business.
o Concerned about helping community build out. Bringing in high paying professionals
will push people out.
High paying professionals have all of Northern Colorado to choose from.
• Metro-districts, affordable projects, etc.? Spread out infrastructure cost over time, relative to
property taxes, as opposed to big sink at the beginning.
o Not off the big list. City is actively revising the plan. Looking at action plan, prioritizing
strategies and giving them timelines. Some issues will continue to be monitored. Metro-
districts are cousin of special districts, might have appropriate role in affordable housing,
exploring it.
o Land Bank properties will have infrastructure costs. Can we distribute cost over time?
Excited to look at best ways to deploy Land Bank properties. Have severe
limitations: solely residential. Urban planning best practices say developments
should be mixed use and mixed income.
• Will August adoption have prioritized list?
o Hopefully yes. This is a City plan because best practice. Will be able to look more closely
at specific strategies once have consultant report. Looking at what can actually be done in
5 years.
What is goal for five years?
• Hoping for 6% subsidized in 5 years and up to 10% eventually.
• Updates can be sent via email.
AGENDA ITEM 2—Vine/College Revitalization Study, Tom Leeson, Redevelopment Program
Manager
Looking at redevelopment potential of this area. Only about 15 years left in North College URA. URA
approach is changing to be less reactionary, more proactive in identifying constraints, etc. Already
momentum in the area with Innosphere, Power House campus, museum, Woodward, river restoration, etc.
Development community has interest for space due to proximity to downtown with reduced cost. Map
shows commercially zoned properties; the boundary goes into residential area but only affects
commercial lots there. Also includes natural areas. Process involves evaluating existing conditions to
understand zoning, infrastructure needs, uses, etc.; identifying opportunities and constraints; and
proposing continuum of actions to revitalize area. Important to distinguish from a plan—it is a study, will
not result in proposed changes to zoning, etc. Information gathered will be used as part of Downtown
Plan which will go through public process. Have assessed value of parcels and physical constraints such
as floodway and flood plain. Some will change as part of river restoration funded by BOB2.
Opportunities and constraints have been mapped. Sites are vacant, underutilized, have little improvement,
and there is potential for enhancements to Vine Drive, College to Redwood. Constraints include
floodway, truck corridor with heavy traffic, railroad, electrical substation, etc. Have met with
transportation and engineering to determine what Vine Drive could look like. Respect natural area,
accommodate heavy traffic, multi-use/modal, need for parking. Moving forward will refine opportunities
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and constraints, provide continuum of choices to downtown planning process, and continue outreach to
property and business owners, boards, citizens, etc.
Discussion/Q & A:
• Showing the realigned Vine?
o No. Realigned Vine is north of subdivisions, by Aspen Heights. Will be called Suniga.
• How does this play into the Innovation Park vision URA was looking into?
o Part of analysis. First started as tech park or innovation district anchored by think tank
facility. As explored that, it became too plan-like. Did not want to prescribe uses on
parcels. Took a step back and decided to use formal and natural planning process with
Downtown Plan. Zone or code changes would have to go through that process.
• Provides understanding of challenges that TIF could be used to address, such as improvements to
Vine Drive and utility issues there. Solving bigger system issues as opposed to trying to do
system improvements through projects.
• Innovation branding served as catalyst to bring projects.
o Innovation districts tend to define themselves.
o Character may end up being different than traditional innovation district. Urban design
enhancements provide opportunity, but City does not want to dictate.
o Leaving open characterization?
Downtown Plan has characterized areas. This one is named “Innovation District”
but that does not dictate end users. That describes what is there now.
o Are there other areas under consideration for innovation?
While great innovation assets in this area, wanted to back off of declaring this as
innovation place because innovation is throughout the city.
• This misses getting over the river as a constraint. Visual conception that downtown ends at the
river. How to help bridge this? River project will help?
o Great opportunity to blend the two areas. Right now there is a hard stop at river, and
character changes at the bridge. This effort is trying to get revitalization up north.
o Do we need to expand the study area to Willow and College? Modernization of
intersection would be beneficial.
Understand need for physical enhancements for pedestrians to enter this area.
Downtown Plan looks at that intersection.
• Really cool. This kind of development should be done. Only concern is branding as innovation
district, which would push brand on businesses. Cool anchors in the area to build from.
• Financially, who is going to pay? Needs to be scaled to revenue generated.
o TIF should be listed in opportunities. Understand how URA and DDA can participate in
infrastructure upgrades. Need to determine costs of Vine Drive and what TIF could come
from redevelopment.
o Can have another conversation as translate opportunities and funding into strategic plan,
which will be influenced by Downtown Plan. Context from study helps inform those
decisions.
• What impact will new TIF law or URA legislation have on this?
o New URA legislation has potential to impact all URA projects. Language is ambiguous
on how it would impact existing URA projects. Evaluating impacts and legal
ramifications. Work session on June 23 with URA Board. Municipal League will provide
recommendations.
• How did you select boundaries?
o Boundaries of URA. Cannot fund improvements outside of this area with URA/TIF.
o Vine/Lemay intersection is a constraint.
• What impact does train have?
o Significant. Physical barrier. Has impact on how address street and bike lanes because
property is owned by railroad. Noise and other train issues affect property values.
o What is future of train traffic?
Unsure. System upgrades in other parts of state have increased our traffic. In
terms of shipping, trains have increased demand. Will continue to be an impact.
• Excited URA and staff are looking at path to growing this space economically without a lot of
intervention, but removing barriers. Pleased with study.
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o This is step one of new process of URA. Identify constraints, develop vision, determine
financing, implementation strategy, to outcome. North College URA was done without
enough strategy and was too big. Urban Renewal is growth management and blight
remediation tool. Trying to use available land more efficiently and effectively.
North College was blighted. Because of URA have been able to achieve
successes. This will set pattern for evolution of URA.
o More intentional allows better control of outcome.
• Will staff do similar analysis on Midtown area?
o Yes. Two URA districts in Midtown. First, need to study remaining area outside mall to
create focal points, then start this type of study, then visioning and planning. Determining
focal area will include stakeholders: PSD, library district, businesses, etc.
• Board will get update on Downtown Plan.
o Will be data and condition heavy. Learning background for future conversations.
Bringing commission in at key phases.
AGENDA ITEM 3—Additional Commission Dialogue
Josh shared updated agenda calendar. July is AHSP recommendation. Sue will provide draft
recommendation. Sue or Clay can come in to provide clarification. Commission is requested to send
questions in advance. Broadband Strategic Plan will be presented in July. Will try to have Environmental
Services and Social Sustainability strategic plans together in August, as well as Downtown Plan update.
NISP is currently scheduled for August. May choose to get educated on water topics throughout the year
before forming a commission opinion. Airport presentation in September. Landscape around innovation is
changing, so doing innovation economy asset map. Will bring to commission in October. Will develop
topics for November and December. 45 minutes may be better time allocation for presentations with
question and answer.
Discussion/Q & A:
• Will follow-up discussions on previous presentations be shorter amount of time?
o Yes. 15 minutes. If need clarification do so between meetings.
• Does commission ever get presentations from external groups such as DDA?
o Commission would need to take initiative to do that, but built to serve Council. If need
information to advise Council then appropriate.
Need to learn more on topics in order to be more effective in advising Council.
Connect to community at large.
Have not historically had time to do that.
o EAC had strategic partnership session in the past. How they interact with City and
economics, what their plans are, what their roles are. County, DDA, etc.
November/December.
If want more dialogue for collaboration, need to give adequate time.
Staff interfaces with these organizations frequently.
• Economic Health Strategic Plan was adopted by Council. Commission will make
recommendations for updates. Will be reviewed annually.
Meeting Adjourned: 1:29pm
Next Meeting: July 15
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