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HomeMy WebLinkAboutEconomic Advisory Commission - Minutes - 09/16/2015MINUTES CITY OF FORT COLLINS ECONOMIC ADVISORY COMMISSION Date: Wednesday, September 16, 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 Linda Stanley Sam Solt, Chair Denny Otsuga Ann Hutchison Kim Dale (arrived 11:50) Kristin Owens Ted Settle Glen Colton Staff Present Staff Absent Josh Birks, Economic Health Director (left 12:40) Dianne Tjalkens, Admin/Board Support Meaghan Overton, PDT Intern Caroline Mitchell, Environmental Planner Susie Gordon, Senior Environmental Planner SeonAh Kendall, Economic Policy and Project Manager (arrived 12:45) Guests David May, Fort Collins Area Chamber of Commerce Gary Liss, Zero Waste Associates consultant (via phone) Meeting called to order at 11:08am Agenda Review—No changes. Public Comment—None. Commission Member/Staff Updates— Glen asked Josh to elaborate on housing/affordability and mall agreement. • Redevelopment agreement has 446 units by end of 2018 or penalty beginning in 2020 (50% of shortfall based on schedule of generated tax revenue). Originally entitled for 800 units on blocks 2-6. Having conversations with Alberta and other developers interested in residential, but all have indicated cannot provide 446 units. Can do 400. Since having conversations with County Assessor, prices have gone up. Asking what happens if reach 400, but meet or exceed projected tax revenues. If fail to deliver 446 units pay half of shortfall, so if there is no shortfall of revenue the penalty is 50% of zero. Should there be an amendment to the agreement? Have not come to any conclusions within staff. Really trying to achieve the revenue projection; less concerned with units. Intent of penalty was to make sure revenues pledged for bonds are in place. Failure to get to 446 units does not create default of agreement. • Stipulated amount of revenue not delivered? 1 | Page o Penalty is 50% of shortfall based on revenue schedule. If units are at higher value the penalty has no value attached to it. Alternative is to change the agreement to “units or revenue.” Next time will make sure there is an and/or agreement that addresses units and revenue. o Why was a certain number of units important?  The maximum deliverable based on zoning is 800, but 446 was based on alternative design with podium parking apartment product. Since the agreement, concrete has become too expensive to build that kind of unit. o If unit number and type of property is keeping up with demand, keeping penalty based on number of units does not make sense. o Intent of having a number of affordable housing units. Don’t want a smaller number of higher end units.  Agreement has no affordable housing component. No change there. AGENDA ITEM 1—2016 Work Plan Submit work plan annually. Due November 30. Frame conversation today and in October and November spend more time discussing and finalizing. Josh provided 2015 work plan to commission. Also provided straw man for approaching conversations around growth: review data, have discussion with Cameron Gloss, state demographer presentation, develop alternative paradigms over a course of meetings, draw conclusions and next steps. Can begin data conversations in December, barring other items of interest coming before Council. Discussion/Q & A: • Create common understanding. Figure out what information is important to know about: population, sales tax, employment rates, etc. Come to understanding of dominant paradigm that currently guides policy, and then learn about alternatives. “Theory of Abundance”? o Theory of scarcity is dominant paradigm in economics, but hasn’t proven out with innovation.  Not to say it won’t with fires, floods, and other large scale events. o Hope to come to conclusions about the paradigm the board would like to suggest Council use in making policy decisions. o When look at paradigms, helpful to look at what other communities with common characteristics have done. Will help develop recommendations/practical suggestions.  Would like to see solid example that is reality based in sessions with presenters. • Because it’s not done somewhere else, doesn’t mean it can’t be done. • Conversation should be time-bound. Six sessions over the year seems reasonable. Can reserve places on the agenda for these conversations. • Asking how this fits in historic work plan. What do people say who come here for listen and clarify work? This should be productive use of energy, focusing. o Consistent with other boards and commissions. EAC has not traditionally had project from regulation, etc., and has been in search of one. • Important to identify paradigm we are currently working under. Alternative scenarios to wanting more. Water issues, space, economy, etc. versus reality. We are bumping up against limits. ACTION ITEM: Members email Josh (cc Dianne) with ideas for work plan between meetings or come to next meeting with notes. AGENDA ITEM 2—Downtown Plan Presentation is overview of Downtown Plan process to date. Plan guides policies, infrastructure investments, funding, and identity and character for downtown. Removed residential areas from this plan as they are covered by neighborhood plans. Now includes more commercial/retail north and south of original plan area. Nearing end of Visioning phase and moving into Choices and Strategies. Public engagement has been extensive. Six working groups that cover range of issues included in plan: arts and culture, downtown management, market and economy, transportation and parking, etc. Phase 1 summary synthesizes public feedback and identifies emerging priorities. Will continue these summaries for other 2 | Page parts of project. Market and Economy concerns around affordability for housing and commercial space, parking, and helping local businesses survive downtown. Market analysis is in draft phase. Area analysis includes bikeable area (1.5 miles from center), city boundaries, and region. Assessment has leakage analysis. Hearing that people want access to basics in downtown, not just boutique and specialty stores. Opportunities include housing, office, retail, visitor and industrial. Perception that restaurants are taking over, though occupy 30% of space and 50% of sales. Have opportunities for boutique hotel, maker spaces, live-work units, etc. David Sucher, author of City Comforts, will be speaking at Lincoln Center for Downtown Plan Community Event on September 24. What does successful downtown economy look like 10-20 years from now? Innovative projects or approaches? Questions or issues that need investigation? Discussion/Q & A: • A lot of people in Fort Collins who don’t go downtown because it doesn’t feel welcoming to them—make sure to get their voices included. o Have heard this: too crowded, too many festivals, no parking, etc. Hearing voices of those who are choosing not to go downtown anymore. Interested in hearing more about places staff can go to reach a broader demographic. • Upper floors must be considered in downtown square footage. Would be interesting to see analysis of just ground level. • Opportunities list some of everything. Downtown cannot be everything to everyone. Need to determine what character should be and take opportunities that keep that. o Depending on what character we focus on, there will continue to be people who choose not to go downtown. That is okay. Can’t make it everything to everyone. That would hurt character. Don’t be afraid of opinions. Listen, though. • Concerns about corporatization of downtown. o Many comments about chain businesses and keeping big corporations out of downtown. Some want to balance them, others want to let the market do what it will do. Preference for local business over chains.  Data there would be helpful. Not seeing that. Understand supporting local business.  Working group includes real estate agents, business owners, etc. They are seeing this as a potential threat that hasn’t come yet, but has happened in other communities. So, how do we help local businesses survive, including some franchises that are chains but locally owned. More about people’s relationship to downtown. Also shows up in concerns about rising rents. As rents go up, chains are those who can afford the spaces. • Agree with philosophy. Visitors go to unique places. Ensure keeping the unique/special element. Brings value to what we have and like idea of having some chains so long as they are unique and have connections with downtown and community, such as Susan at Savory Spice Shop. o Everything in threat section has a sense of something happening now.  Weaknesses are current issues that might need to be addressed immediately. Threats are future. • Some of the threats are current. Perhaps some other language like “future concerns” to delineate current and potential issues. • Many comments from public have been about current issues. Hard to think about 20 years from now. • Random sample survey to determine who goes downtown and what they do there? o Online survey was random. Results of first survey are available. Second survey just closed. Asked why go to downtown, how you get there, what is your zip code, etc. o Important to have age distribution in surveys. Thinking we may be missing seniors. Events in downtown draw a younger crowd. Could be events geared toward the aging population we are seeing in our community. Basic services, agree that there isn’t a lot, but having Ace Hardware is beneficial.  And Safeway. Cover a lot of services between the two.  Many don’t think of Safeway as downtown. Example of a cool marketplace in a downtown area is in Ballard. Were discussions of a permanent downtown farmers market. Haven’t heard any more about that. 3 | Page • One option for the trolley barn. At corner of Cherry and Howes. Has been storage, including Car 25 which is being restored currently. A lot of interest for purchasing/leasing recently. Doing engagement process which will become request for proposals. • Are we satisfied with Galleria use? Seems underutilized. o Winter Market happens there now. o Privately owned. • Is the parking down middle of College being reconsidered? o Have had comments on whether it should stay or be removed.  Underutilized space. Could do something cool with it.  Used to be trolley.  Public comments include adding more parking, circulator shuttles, garages on the periphery, etc. to better move people through downtown. Have not created a list of options yet. • Some kind of hotel with convention center might be interesting idea to explore. Second idea is to shut down road. Peripheral parking and public transportation options within. Really important to set baseline data, then ask questions of public. Present data to get ideas about real issues rather than just perceptions. Longer, more robust, data-based surveys as move toward implementation. • Going to have to bite the bullet on paid parking. In other communities has not affected businesses. Mix between too much and not enough going on: we are pushing the limits on too much. Need a new location for events. If we have an event every weekend, what is real purposes of downtown? Like the character now. Have time periods where older people go home and younger crowd is just getting started for evening. • How does this plan fit with area north of downtown? It is a growing area and the connections should be investigated. Review and Approval of Minutes: Glen moved and Denny seconded a motion to approve the August minutes as presented. Motion passed unanimously, 5-0-0. AGENDA ITEM 3—Community Recycling Ordinance In 1995 passed Pay-As-You-Throw ordinance, which has since become a best practice. Has been updated a few times throughout the years. Two part project: 1. Continuous improvement, 2. Tool for greater applications. Council has adopted a diversion rate goal of 50% in 1999, which has been surpassed. New goals include 75% diversion by 2020. In 2007 passed landfill ban on electronics, in 2013 added ban on cardboard. Role of City is education, policy framework and ordinances. Hauling is done by private companies. Current ordinance: trash and recycling rates are bundled for single family residential and is based on volume of can subscription. Commercial and multifamily are generally serviced with dumpsters. Pricing is based on volume and service frequency. Recycling is not bundled, but is a separate service. 95% of single family homes, 68% of multifamily complexes, and 48% of commercial have subscribed to recycling. Have researched case studies, best practices, and have done extensive community outreach. Working with Zero Waste Associates on data collection and draft options for the ordinance. Draft options developed from research and feedback: allowing a baseline fee to mitigate economic impact of diversion, requiring recycling service for all, having all haulers offer yard trimming collection for single family residential, exploring having businesses that create large amounts of food scraps/organics compost, etc. Massive bio-digester has been built in Kersey: primarily built for feedlot and dairy waste, but can take food scraps. Generates and captures methane. Other options in medium term include phasing in organics collection (food scraps with yard trimmings). Many communities moving to every other week for trash when add organics to weekly collection. Medium term: follow single family model and bundle trash and recycling for multifamily and business. Also thinking about phasing in organics for businesses. Longer term potentially expanding landfill ban on recyclables/organics. Greatest amount of diversion can come from compostables. Could get 75% diversion by 2020 with these options. Goal is to not have negative economic impact. However, adding 96 gallon cart of recycling is about $20-30 per month. If decrease 4 | Page trash service by amount of recycling diverted, could mitigate additional cost. Additional benefits include meeting CAP and RZW goals, positive effect on job creation by not landfilling (approx. 250 jobs), extends life of landfill which only has 10 years left. Anticipate significant increase in trash service prices when landfill closes. Discussion/Q & A: • Pricing is not set, but ratio is? o Yes. • Price difference is negligible between sizes. o HOAs can get own contracts, but price difference should be 100% between sizes. • Some people don’t subscribe to trash service at all. o Percentages are of those who have trash service. One of complaints hearing at apartment complexes and businesses is illegal dumping. Discussing ideas about requiring trash subscription.  Municipalities in Japan are requiring subscription to trash service because cost got so high dumping was becoming a concern. o In Fort Collins, open dumping has not been an issue. • Right now restaurants are putting food waste into the trash. Have we thought about a way to incentivize composting rather than requiring? Provide bins, service, etc. Would like to see trash company come for recyclables every week. Recyclables are far more volume than trash. o Every week recycling would raise rates. Cost is in truck and driver. Have been in close contact with trash haulers throughout the process. They suggest people can get more than one recycling bin if needed. o Adding can for yard trimmings is not cheap. • Hope that argument to multifamily and commercial would focus on point of pay me now or pay me later. The cost of a new landfill must be huge. Everyone will feel it. • Base fee: understand when have utility like water need to increase base fee to cover fixed costs when conservation increases. In this case the city has three private businesses competing for customers. Haulers would like more predictable revenue, but what is rationale? Generally lose incentive for reduction when implement base fee. Agree that important to have commercial and multifamily required to recycle. Will be fall-out, but not unreasonable. Would like to see compost moved up; it would be very popular and should be required. It becomes part of daily life. Hope that we do new recycling center. Important to community. The City talks about sustainability, but our recycling program is not cutting edge. Many other places doing better than we are. • Where does PSD fall in regard to this? What are they doing? Can we partner with them to engage kids in recycling? o Being taught at young age in elementary school. • And waste for the school as well. Are kids putting food waste in compost? o Fourteen schools have composting for food waste. o PSD has great recycling and more schools want compost. Meeting Adjourned: 1:12pm Next Meeting: October 21 5 | Page