HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 02/15/2022 - RESOLUTION 2022-033 APPROVING AND AUTHORIZING THE Agenda Item 19
Item # 19 Page 1
AGENDA ITEM SUMMARY February 15, 2022
City Council
STAFF
Clay Frickey, Redevelopment Program Manager
Ryan Malarky, Legal
SUBJECT
Resolution 2022-033 Approving and Authorizing the Execution of a Memorandum of Understanding with
Housing Catalyst Regarding the Proposed Redevelopment of the City's Remington Street Parking Lot.
EXECUTIVE SUMMARY
The purpose of this item is to consider adopting a resolution that would authorize City staff to enter into a
Memorandum of Understanding (MOU) with Housing Catalyst for the purposes of securing potential state
and/or federal funding to support a future mixed-use, mixed-income redevelopment of the City-owned
Remington lot (Block 122). The potential redevelopment project would incorporate 50% deed-restricted
affordable housing, providing 80-120 units of affordable housing in the Downtown area. Entering into this MOU
is intended to give Housing Catalyst the required level of site control to apply for potential state or federal
funding opportunities by stating the City’s intent to lease the Remington lot to Housing Catalyst, subject to later
City Council approval of the lease by ordinance. The MOU also provides termination provisions that will allow
the City or Housing Catalyst to terminate this r elationship. Approval of the Resolution does not bind the City to
a specific development program or partnership with Housing Catalyst or obligate the City to lease the property.
STAFF RECOMMENDATION
Staff recommends adoption of the Resolution.
BACKGROUND / DISCUSSION
The City owns Block 122 in Downtown Fort Collins, bounded by Oak Street on the North, Remington Street on
the East, Olive Street on the South, and Montezuma Fuller Alley on the West (see image below). The 1.3 -acre
site has functioned as a surface parking lot for many years. This parking lot provides 152 parking spots with a
mix of permit and 2-hour parking. There are 120 permits issued to park in this lot.
Agenda Item 19
Item # 19 Page 2
Pursuing a redevelopment of the Remington lot through a partnership with Hous ing Catalyst presents an
opportunity to proactively address Fort Collins’ housing challenges by leveraging State and Federal recovery
funding. The City’s Recovery Plan engagement indicates that affordable housing is a top community priority for
recovery, and the 80-120 affordable, deed-restricted units proposed as part of this redevelopment would
represent 28-43% of the City’s annual production goal for affordable housing (282 units per year). In addition to
providing a substantial amount of new affordable housing, both the City and Housing Catalyst can collaborate
on delivering a project that will provide multiple community benefits.
SITE HISTORY
The Remington lot was once the subject of a potential public/private partnership for redevelopment. On July
22, 2008, Council considered an agenda item that proposed a public/private partnership for development of a
hotel and convention center. This was the culmination of a two-year process to select a development partner in
collaboration with the Downtown Development Authority (DDA). The proposal included the following:
• 150 room hotel
• 4 for-sale residential units
• 75,000 square feet of office space
• 2 levels of below grade parking, providing 390 parking spaces
• 70 surface parking spaces on the adjacent Elks Lodge site
The hotel and residential building would have been nine stories in height while the office building would have
been four stories in height. The agenda item summary indicated an expected construction start date of Spring
2009 with completion by Summer 2010. The Great Recession made this project infeasible, and the parking lot
has remained undeveloped since.
PARTNERSHIP WITH HOUSING CATALYST
In 2019, Housing Catalyst and DDA partnered on the 79-unit Oak 140 development at the former Elks Lodge
site, immediately to the north of the Remington lot. Oak 140 is under construction with a projected opening in
early 2023. Based on this successful collaboration, Housing Catalyst and DDA have been seeking other
development opportunities in Downtown.
In late 2021, as information about housing related American Rescue Plan Act (ARPA) funding opportunities
was released, staff from Housing Catalyst, DDA, and the City began discussing the potential for partnering on
a redevelopment of the Remington lot. Housing Catalyst plans to seek financial support from ARPA and
several state and federal programs. To apply for these funding opportunities, however, Housing Catalyst must
demonstrate some form of site control of the Remington lot.
Agenda Item 19
Item # 19 Page 3
Accordingly, staff from the City and Housing Catalyst have collaborated on a draft Memorandum of
Understanding (MOU) to demonstrate the City’s commitment to partnering with Housing Catalyst on a mixed -
income, mixed-use redevelopment project on the Remington lot. If approved, the MOU would state the City’s
intent to enter into a long-term (99 year) lease with Housing Catalyst for the Remington lot, subject to Council
approval of the lease. This would provide some form of site control to Housing Catalyst, allowing Housi ng
Catalyst to apply for ARPA funds and other state and federal programs. The MOU includes termination
provisions that will allow the City or Housing Catalyst to terminate this relationship. Approval of the Resolution
does not bind the City to a specific development program or partnership with Housing Catalyst. Details of the
development are subject to change as Housing Catalyst does not have a final development program for the
site.
The MOU outlines a proposed redevelopment that would:
• Preserve or replace all existing surface parking
• Incorporate at least fifty percent (50%) deed-restricted affordable housing, serving households making
equal to or less than eighty percent (80%) of Area Median Income
• Provide approximately 80 to 120 deed-restricted affordable housing units, equivalent to 28-43% of the
City’s annual affordable housing production goal of 282 units per year
If funding is secured to support the Remington lot redevelopment, staff will bring for Council consideration a
Binding Agreement that will outline further details on the following:
• Structure of ownership
• Roles and relationships of all parties to the agreement
• Details on the development program
• Anticipated project costs
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RESOLUTION 2022-033
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROVING AND AUTHORIZING THE EXECUTION OF A MEMORANDUM OF
UNDERSTANDING WITH HOUSING CATALYST REGARDING THE PROPOSED
REDEVELOPMENT OF THE CITY’S REMINGTON STREET PARKING LOT
WHEREAS, the City is the record fee title owner of the real property described as Lots 1
through 8, Block 122 in the City of Fort Collins, Colorado (the “Property”), informally referred
to as the Remington Street parking lot; and
WHEREAS, the mission of Housing Catalyst is to create vibrant, sustainable
communities throughout Fort Collins, including the development of new residential units that
provide long-term affordable housing solutions; and
WHEREAS, pursuant to Colorado Revised Statutes (“C.R.S.”) Section 29-4-209(1)(d),
Housing Catalyst has the power and authority to provide for the construction, management, and
operation of projects providing for dwelling accommodation that substantially benefits persons
of low income as determined by Housing Catalyst; and
WHEREAS, pursuant to C.R.S. Section 29-4-209(1)(d.7), Housing Catalyst has the
power and authority to establish entities controlled by Housing Catalyst to own, construct, and
operate projects providing for dwelling accommodation that substantially benefits persons of low
income as determined by Housing Catalyst; and
WHEREAS, pursuant to C.R.S. Section 29-4-209(1)(t), Housing Catalyst has the power
and authority to enter into contracts and agreements necessary or convenient to the exercise of its
powers and authority; and
WHEREAS, Housing Catalyst has substantial experience in developing and managing
qualified-affordable housing projects, and in light of such experience, City staff has engaged
with Housing Catalyst to consider and further develop the concept of potentially redeveloping
the Property as a mixed-use building containing qualified-affordable housing while retaining
public parking (the “Project”); and
WHEREAS, the City and Housing Catalyst anticipate that the Project would be funded,
at least in part, by funding currently being offered by the Colorado Department of Local Affairs
(“DOLA”); and
WHEREAS, staff has recommended the City and Housing Catalyst form a relationship
under which Housing Catalyst will be able to show sufficient site control and existence of a
conceptual and financial plan regarding the Project, subject to negotiation of final terms and
conditions and final approval, to obtain said DOLA funding or other appropriate funding; and
WHEREAS, in order to accomplish this, City staff and Housing Catalyst have negotiated
the Memorandum of Understanding attached as Exhibit “A” and incorporated by reference (the
“MOU”); and
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WHEREAS, the City and Housing Catalyst acknowledge in the MOU that although the
MOU is not a binding agreement, they intend to cooperate in good faith to negotiate and enter
into a binding agreement under which the parties would further pursue redevelopment of the
Property; and
WHEREAS, the City Council hereby finds that the MOU is necessary for the public’s
health, safety, and welfare and is in the best interests of the City and its residents, businesses and
public and private organizations.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. That the City Council hereby makes and adopts the determinations and
findings contained in the recitals set forth above.
Section 2. That the MOU is hereby approved and the Mayor is authorized to execute
it substantially in the form attached as Exhibit “A”, together with such revisions and
amendments as the City Manager, in consultation with the City Attorney, determines to be
necessary and appropriate to protect the interests of the City or to effectuate the purposes of this
Resolution.
Passed and adopted at a regular meeting of the Council of the City of Fort Collins this
15th day of February, A.D. 2022.
____________________________________
Mayor
ATTEST:
_____________________________
City Clerk
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MEMORANDUM OF UNDERSTANDING PERTAINING TO REDEVELOPMENT OF
REMINGTON STREET PARKING LOT
THIS MEMORANDUM OF UNDERSTANDING is made and entered into this ___ day
of , 2022, (this “MOU”) by and between the City of Fort Collins, Colorado, a
Colorado home rule municipality (the “City”) and Housing Catalyst, a body corporate and politic
(“Housing Catalyst”). The City and Housing Catalyst shall hereafter be collectively referred to
as the “Parties.”
RECITALS
WHEREAS, the City is the record fee title owner of the real property described as Lots 1
through 8, Block 122 in the City of Fort Collins, Colorado (the “Property”), informally referred
to as the Remington Street parking lot; and
WHEREAS, the mission of Housing Catalyst is to create vibrant, sustainable
communities throughout Fort Collins, including the development of new residential units; and
WHEREAS, Housing Catalyst is the community leader in sustainable, long-term
affordable housing solutions; and
WHEREAS, pursuant to Colorado Revised Statutes (“C.R.S.”) Section 29-4-209(1)(d),
Housing Catalyst has the power and authority to provide for the construction, management, and
operation of projects providing for dwelling accommodation that substantially benefits persons
of low income as determined by Housing Catalyst; and
WHEREAS, pursuant to C.R.S. Section 29-4-209(1)(d.7), Housing Catalyst has the
power and authority to establish entities controlled by Housing Catalyst to own, construct, and
operate projects providing for dwelling accommodation that substantially benefits persons of low
income as determined by Housing Catalyst; and
WHEREAS, pursuant to C.R.S. Section 29-4-209(1)(t), Housing Catalyst has the power
and authority to enter into contracts and agreements necessary or convenient to the exercise of its
powers and authority; and
WHEREAS, Housing Catalyst has substantial experience in developing and managing
qualified-affordable housing projects, and in light of such experience, City staff has engaged
with Housing Catalyst to consider and further develop the concept of potentially redeveloping
the Property as a mixed-use building containing qualified-affordable housing while retaining
public parking (the “Project”); and
EXHIBIT A
2
WHEREAS, the Parties anticipate that the Project may be funded, at least in part, by
funding currently being offered by the Colorado Department of Local Affairs (“DOLA”); and
WHEREAS, the Parties desire to form a relationship under which Housing Catalyst will
be able to show sufficient site control and existence of a conceptual and financial plan regarding
the Project, subject to negotiation of final terms and conditions and final approval, to obtain said
DOLA funding or other appropriate funding; and
WHEREAS, this MOU sets forth the Parties’ understanding of how the concept of
redevelopment of the Property may be achieved.
NOW, THEREFORE, the Parties hereby set forth their acknowledgements,
understandings, and intentions under this MOU:
1. Purpose.
a. The Parties acknowledge and agree that, except as otherwise specifically set
forth below, the purpose of this MOU is not to bind the Parties to any
obligation but to set forth the Parties’ intention to cooperate in good faith to
negotiate a binding agreement under which the Property may be redeveloped
in furtherance of the Project (the “Binding Agreement”).
b. The Parties intend that this MOU provides sufficient evidence of mutual intent
for the completion of the Project so that Housing Catalyst may obtain
appropriate funding for the Project, including but not limited to DOLA
Funding, as identified in Section 4, infra.
2. Term. This MOU shall commence upon execution by the Parties and shall continue
until the sooner of termination in accordance with its terms or the execution of the
Binding Agreement between the Parties.
3. Project. The Parties anticipate the Project shall be a mixed-use development,
comprising deed-restricted affordable housing, market-rate housing, and
retail/commercial uses (the “Building”). The Project will also include parking and
other complementary uses.
4. Financing.
EXHIBIT A
3
a. The Parties acknowledge that they are in the process of determining the
amount of funding necessary for the Project, as well as the sources of such
funding.
b. The Parties agree that Housing Catalyst shall be responsible for obtaining
funding from Operation Turnkey, a funding program offered by the Colorado
Department of Local Affairs, Division of Housing, Office of Housing Finance
and Sustainability and the Office of Homeless Initiatives (collectively,
“DOLA”). Housing Catalyst shall be responsible for the costs associated with
applying for said funds. Said funding program is intended, in part, for the
acquisition of land and/or existing properties suitable for the purpose of
providing or developing affordable housing for extremely low to moderate
income individuals and families (“DOLA Funding”).
c. The Parties acknowledge that the DOLA Funding may not be available, or
upon further due diligence may not be appropriate for Housing Catalyst’s
needs for the Project. Accordingly, the Parties agree to work in good faith
towards identifying and pursuing other appropriate sources of funding,
including but not limited to federal or state funding opportunities (“Funding”).
d. The Parties shall in good faith continue to work toward an agreement on the
amount and sources of funding for the Project.
5. Long-Term Ground Lease. In support of Housing Catalyst’s submission of an
application to DOLA for funding, the City intends that Housing Catalyst shall have
the option to enter into a long-term ground lease with the City for the Property, on
such terms and conditions as the Parties may agree, but with a term of ninety-nine
(99) years (the “Lease”). Housing Catalyst acknowledges that the Lease shall be
subject to the approval of the City Council of the City of Fort Collins by ordinance, in
its sole discretion. Each party shall be responsible for its own costs and attorney fees
in the negotiation and preparation of the Lease.
6. Covenants and Conditions. The Project may be subject to certain covenants and
conditions to be set forth in the Binding Agreement, including but not limited to:
a. Preservation or replacement of all existing public and permitted parking
spaces existing on the Property, which currently total 152, in addition to
providing adequate parking for the proposed development;
b. Operation of the parking under an agreement; and
EXHIBIT A
4
c. Requirement that the residential component of the Project must be at least
fifty percent (50%) deed-restricted affordable housing, serving households
making equal to or less than eighty percent (80%) of Area Median Income.
The Parties estimate that the Project will provide 80 to 120 deed-restricted
affordable housing units.
7. Anticipated Partnership Structure. The Parties agree to work in good faith towards
evaluating and determining an appropriate partnership structure to further the Project,
which may include a public/private partnership with a mutually selected developer.
8. Anticipated Allocation of Certain Responsibilities.
a. The Parties anticipate that certain responsibilities related to financial
contributions and cash flow, selection of necessary or reasonably required
third-party services, management of the Project and the Building,
development of the Project, guaranty obligations related to the Project and
subordination of debt related to the Project will be allocated amongst the
Parties. The actual allocation of responsibilities shall be determined by
agreement of the parties in the Binding Agreement.
b. The Parties anticipate that Housing Catalyst will be responsible for preparing
and submitting all applications and other submissions necessary for all aspects
of the Project, including but not limited to, those related to land use approvals
and financing of the Project, and for diligently and competently managing
through completion all processes associated therewith.
9. Future Negotiations. Upon the full execution of this MOU, the Parties intend to
proceed diligently and in good faith to negotiate the Binding Agreement consistent
with the acknowledgements, understandings, and intentions stated in this MOU.
10. Termination of MOU. Either party may terminate this MOU by written notice to the
other party, delivered at least thirty (30) days prior to the termination date contained
in said notice, unless otherwise agreed in writing by the parties, if any of the
following should occur:
a. Housing Catalyst does not submit an application for Funding in 2022;
EXHIBIT A
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b. Denial of Housing Catalyst’s application(s) for Funding;
c. Despite reasonable and good faith efforts, the Parties are unable to reach
agreement on any matter for which the future agreement of the Parties is
necessary for completion of the Project; or
d. Either party is unable to perform its obligations under this MOU or to
otherwise complete the Project as envisioned hereunder.
If either party terminates this MOU, each party shall be responsible for its own costs
related to its performance pursuant to this MOU.
11. Cooperation. The Parties agree to act in good faith and cooperate each with the other
to effectuate the terms and provisions of this MOU and to execute any and all
additional documents or take such additional action as may be reasonably necessary
or appropriate to effectuate the terms and provisions of this MOU.
12. No Waiver of City Land Use Authority or other Laws. In signing this MOU, and
agreeing to cooperate and negotiate regarding the Project, the City is not waiving its
land use authority or any other legal, regulatory, permitting or other authority granted
to it by law, including the Charter and Code of the City of Fort Collins.
13. Representatives and Notices. The Parties’ respective designated representatives and
legal counsel for negotiations and communications concerning future negotiations,
and their contact information, are as follows:
For the City: Clay Frickey
Redevelopment Program Manager
222 Laporte Ave.
Fort Collins, CO 80521
970-416-2517
cfrickey@fcgov.com
Meaghan Overton
Housing Manager
222 Laporte Ave.
Fort Collins, CO 80521
970-416-2283
moverton@fcgov.com
EXHIBIT A
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Carrie Daggett, City Attorney
Ryan Malarky, Assistant City Attorney
300 LaPorte Avenue
PO Box 580
Fort Collins, CO 80524
970-416-2488
cdaggett@fcgov.com
rmalarky@fcgov.com
For Housing Catalyst: Julie J. Brewen
Chief Executive Officer
1715 West Mountain Avenue
Fort Collins, CO 80521
jbrewen@housingcatalyst.com
Kristin Fritz
Chief Real Estate Officer
1715 West Mountain Avenue
Fort Collins, CO 80521
kfritz@housingcatalyst.com
James A. Martell
Belford & Martell, LLC
145 North College Avenue, Suite E
Fort Collins, CO 80524
jamartell@martelllawoffice.com
14. Execution in Counterparts and Facsimile Signatures. This MOU may be executed in
multiple counterparts and with facsimile signatures; each of which will be deemed an
original and all of which taken together will constitute one and the same
memorandum of understanding.
15. Recordation of Agreement. This MOU shall not be recorded in the office of the
Larimer County Clerk and Recorder.
EXHIBIT A
7
IN WITNESS WHEREOF, the Parties have executed this MOU as of the date and year first
above written.
HOUSING CATALYST,
a body corporate and politic.
By:
Julie J. Brewen, CEO
Date:
CITY OF FORT COLLINS, COLORADO,
a Colorado home rule municipality.
By:
Mayor Jeni Arndt
Date:
Attest:
City Clerk
Approved as to Form:
Assistant City Attorney
EXHIBIT A