The URL can be used to link to this page

Home My WebLink AboutCOUNCIL - AGENDA ITEM - 05/17/2022 - FIRST READING OF ORDINANCE NO. 061, 2022, TO INCRE Agenda Item 9 Item # 9 Page 1 AGENDA ITEM SUMMARY May 17, 2022 City Council STAFF Clay Frickey, Redevelopment Program Manager John Duval, Legal SUBJECT First Reading of Ordinance No. 061, 2022, To Increase from Five to Seven the Number of Directors on the Board of Directors of the Fort Collins Tourism Improvement District and to Make an Appointment to One of the New Director Positions. EXECUTIVE SUMMARY The purpose of this item is to amend the ordinance Council adopted in August 2021 to establish the Fort Collins Tourism Improvement District (District). The proposed Ordinance expand s the District’s Board of Directors (Board) from five to seven directors and it would appoint the director for one of the newly created positions. The Board seeks broader representation from the District. The Board’s expansion would allow two at-large electors to serve on the Board. The Board has nominated Abbie Stout, owner of the Edwards House, to fill one of these new positions. The other position will remain vacant until the Bo ard finds an eligible elector who is willing and able to serve on the Board. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION On August 4, 2021, Council adopted Ordinance No. 097, 2021 establishi ng the District (Establishment Ordinance). Section 7 of the Establishment Ordinance provides that the District’s Board shall have five directors who must be “electors” of the District. As relevant to tourism improvement districts, City Code Section 22 -153 defines “elector” to mean a natural person who: (i) is a resident of the State of Colorado, (ii) is eighteen (18) years of age or older, (iii) is registered to vote in general elections in the State of Colorado, and (iv) who maintains a lodging tax lic ense with the City and is obligated to pay the lodging tax by virtue of ownership and operation of a lodging business in the District or is a natural person designated to vote for an entity that is not a natural person and maintains a lodging tax license with the City and is obligated to pay the lodging tax by virtue of ownership of a lodging business in the District. Section 7 also currently requires that three of the directors be affiliated with a large full -service lodging business in the District, one director must be affiliated with a small limited-service lodging business in the District, and one director must be affiliated with a boutique or specialty lodging business in the District. On April 26, 2022, the District’s Board adopted and approved a res olution requesting Council to expand the number of directors on the Board from five to seven. A copy of this resolution is attached as Exhibit “A” to the Ordinance. The Board is also proposing that these two new directors be electors of the District who a re affiliated with any type of lodging business in the District. -1- ORDINANCE NO. 061, 2021 OF THE COUNCIL OF THE CITY OF FORT COLLINS TO INCREASE FROM FIVE TO SEVEN THE NUMBER OF DIRECTORS ON THE BOARD OF DIRECTORS OF THE FORT COLLINS TOURISM IMPROVEMENT DISTRICT AND TO MAKE AN APPOINTMENT FOR ONE OF THE NEW DIRECTOR POSITIONS WHEREAS, on August 4, 2021, the City Council adopted Ordinance No. 097, 2021 (“Ordinance No. 097”) establishing the Fort Collins Tourism Improvement District (the “District”); and WHEREAS, Ordinance No. 097 was amended on December 7, 2021, by Cit y Council’s adoption of Ordinance No. 161, 2012, (“Ordinance No. 161”), which amendment corrected a typographical error in Section 11 Ordinance No. 097 concerning the ending date for the term of the District’s lodging fee; and WHEREAS, Ordinance No. 097 and Ordinance No. 161 shall be jointly referred to herein as the “Establishment Ordinance”; and WHEREAS, City Code Section 22-164(a) provides that tourism improvement districts shall have a board of five to nine directors as specified in their establishment ordinance; and WHEREAS, Section 7 of the Establishment Ordinance currently states that the board of directors of the District (the “District Board”) shall consist of five directors who must all be “electors” in the district, as defined in City Code Section 22-153, of which five directors, three must be affiliated with a large full service lodging business within the District, one must be affiliated with a small limited-service lodging business within the District, and one must be affiliated with a boutique or specialty lodging business within the District; and WHEREAS, on April 26, 2022, the District Board adopted the resolution attached as Exhibit “A” requesting that the City Council amend Section 7 of the Establishment Ordinance to expand the membership on the District Board from five to seven directors with the two added directors each serving a three-year term and being an elector of the District who is affiliated with any type of lodging business in the District; and WHEREAS, on April 26, 2022, the District Board also adopted the resolution attached as Exhibit “B” nominating and recommending that Abbie Stout, the owner of the Edwards House, be appointed by City Council to one of the two new director positions to serve a three-year term; and WHEREAS, Abbie Stout, as the owner of the Edwards House, is an elector of the District who is affiliated with a lodging business within the District and, therefore, qualified to serve as a director on the District Board; and WHEREAS, the District Board has not yet identified a qualified person to nominate and recommend for the second new director position but expects to do so in the near future; and -2- WHEREAS, adoption of this Ordinance is in the best interest of the City and necessary for the District’s effective operation in the future. NOW, THEREFORE, BE IT ORDAINED 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 Section 7 of the Establishment Ordinance is hereby amended to read in full as follows: Section 7. Appointment of Directors. Beginning September 1, 2021, Tthe District's Board shall havehas consisted of five (5) Directors who are Electors of the District having these additional qualifications: (i) three (3) Directors must be affiliated with a large full-service Lodging Business in the District; (ii) one (1) Director must be affiliated with a small limited-service Lodging Business in the District; and (iii) one (1) Director must be affiliated with a boutique or specialty Lodging Business in the District. Commencing June 17, 2022, the number of Directors on the District Board shall be increased from five (5) to seven (7) Directors. Th e two (2) new Directors shall be Electors but may be affiliated with any type of Lodging Business in the District and shall serve a three-year term beginning on the effective date of their appointment by the City Council. The following Electors arewere appointed as the District's initial five (5) Directors to serve on its Board for the staggered terms stated below by the City Council’s adoption of Ordinance No. 097, 2021: (a) Daniel Benton, affiliated with the Fort Collins Hilton, a large full- service Lodging Business, for a one (1) year term; (b) Danielle Lowry, affiliated with the Hampton Inn, a small limited-service Lodging Business, for a two (2) year term; (c) Dragan Andrejic, affiliated with The Elizabeth, a large full-service Lodging Business, for a two (2) year term; (d) George Prine, affiliated with The Armstrong, a boutique/specialty Lodging Business, for a three (3) year term; and (e) Sandra Fredrickson, affiliated with the Fort Collins Marriott, a large full-service Lodging Business, for a one (1) year term. The terms of these initial Directors on the District's Board shall be deemed to have commenced on September 1, 2021, the effective date of the establishment of the District. -3- On April 19, 2022, the City Council adopted Resolution 2022-052 appointing Aryell Mattern as a Director on the District Board to fill the vacancy left by the resignation of Drajan Andrejic from the District Board. Aryell Mattern is an Elector of the District affiliated with Fairfield Inn and Candlewood Suites in Fort Collins, both of which are large full-service Lodging Businesses in the District. Director Mattern was appointed to finish Director Andrejic’s term ending September 1, 2023. Upon the expiration of the initial terms, successor Directors shall be appointed by the City Council by resolution for terms of three (3) years unless the appointee is being appointed to finish the term of a Director who has left the Board for any reason before the expiration of their term and, in such case, the appointee shall only be appointed to finish the term of the departed Director. Section 3. That the City Council hereby appoints Abbie Stout to fill one of the two new director positions on the District Board as an elector of the District who may by affiliated with any type of lodging business in the District, and this appointment shall be for a three-year term beginning on June 17, 2022, and ending on June 17, 2025. Section 4. That except as amended and approved herein, the Establishment Ordinance shall remain unchanged and in full force and effect. Introduced, considered favorably on first reading, and ordered published this 17th day of May, A.D. 2022, and to be presented for final passage on the 7th day of June, A.D. 2022. ______________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on this 7th day of June, A.D. 2022. ______________________________ Mayor ATTEST: _______________________________ City Clerk EXHIBIT A EXHIBIT A EXHIBIT B EXHIBIT B