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HomeMy WebLinkAboutMINUTES-07/01/2025-RegularJuly 1, 2025 COUNCIL OF THE CITY OF FORT COLLINS, COLORADO Council-Manager Form of Government Regular Meeting -6:00 PM PROCLAMATIONS AND PRESENTATIONS 5:00 PM A)PROCLAMATIONS AND PRESENTATIONS PP 1. Declaring the Month of July 2025 as Park and Recreation Month. PP 2. Declaring the Month of July 2025 as Disability Pride Month. Mayor Pro Tern Emily Francis presented the above proclamations at 5:00 p.m. B)CALL MEE TING TO ORDER REGULAR MEETING 6:00 PM Mayor Pro Tern Emily Francis called the regular meeting to order at 6:00 p.m. in the City Council Chambers at 300 Laporte Avenue, Fort Collins, Colorado, with hybrid participation available via the City's Zoom platform. C)PLEDGE OF ALLEGIANCE Mayor Pro Tern Emily Francis led the Pledge of Allegiance to the American Flag. D)ROLL CALL PRESENT Mayor Pro Tern Emily Francis Councilmember Susan Gutowsky Councilmember Julie Pignataro Councilmember Tricia Canonico Councilmember Melanie Potyondy Councilmember Kelly Ohlson (arrived at 7:29 p.m.) ABSENT Mayor Jeni Arndt STAFF PRESENT City Manager Kelly DiMartino City Attorney Carrie Daggett City Clerk Delynn Coldiron City of Fort Collins City Council Proceedings Page 287 July 1, 2025 Kimberly Conner advocated for Council to adopt a Gaza ceasefire resolution and provided information about what is happening in the area. She stated some residents in the community are no longer speaking out due to concerns about being deported. Tameria Dishman shared concerns about the proposed pickleba/1 complex at Fossil Creek Park citing noise concerns. She stated it would violate the existing City's noise ordinance and would have negative impacts on area wildlife. She suggested the pickleba/1 courts should be located where the tennis courts are and the tennis courts moved to where the pickleball courts are proposed. Lori Rasmussen spoke about the need for workforce housing in Fort Collins and asked that this be prioritized as part of the CCIP tax by a/locating $25M for this purpose. Ryan Hogan noted he is a resident of Old Town North and discussed issues with STRs. He encouraged Council to place a hold on approvals and transfers until STRs in his neighborhood come in line with STRs throughout the community. He commented on the detrimental impacts of having so many STRs in the area and shared concerns about parking and safety that have increased. He urged Council to consider residents over investors. Sara Horner stated she has a small business in town and has raised her children here. She stated rentals have been the answer to help set up for retirement. She stated Old Town North is designated as an opportunity zone and STRs have fulfilled the goal of bringing investors into the area. She respectfully reminded Council that when buyers buy a property in the area, they have a chance to review what is allowed. She stated they have followed the rules and now the rules are shifting. She expressed concern about the economic impact that would result. Dan Blonder noted the commercial zoning in Old Town North was not an oversight when it was put in place in 2017. He stated that the City decided to set this neighborhood apart to enable a different experience and rental opportunity and stated the percentage of rental properties was done by design. He stated the oversight is from the homeowners that bought into the area despite the zoning. He suggested many of the homeowners have likely applied for and received their own short-term rental licenses to protect property values. He stated these issues are being caused by ten to twelve organized unhappy homeowners. Juliana Bl onder noted she is a resident of Old Town North and a realtor. She stated they worked hard to purchase a property that could be used as a STR, which is why they chose Old Town North. She noted the homeowners complaining now knew about the neighborhood zoning when they bought their home. She commented on the various events that are available for neighbors which many of the complaining property owners do not attend. Adam Hirschhorn noted he lives at Redtail Ponds and commented on some recent destruction to the building stating 30% of the residents were flooded out due to a 4th floor fire and he is therefore living in a hotel. He commented on the victory of Zohran the Destroyer and stated there needs to be some justice for the people living in Palestine. Kyle Leto noted he is an STR owner in Old Town North and urged Council not to change the current regulations. He stated the current regulations were put in place after thoughtful design and it would be unfair to take this away now. He added it would undermine public trust and impact people's livelihood. He asked Council to focus on better enforcement and to protect fairness, housing choice and the rights of responsible owners. Public comment concluded at 7:05 p.m. City of Fort Collins City Council Proceedings Page 289 July 1, 2025 H)PUBLIC COM MENT FOLLOW-UP Councilmember Potyondy thanked the speakers and noted Council will continue to discuss the STR agenda item later this evening. She expressed sympathy for Mr. Hirshhorn being displaced from his home. Councilmember Canonico thanked the speakers and noted there is an upcoming work session during which Council will discuss pickleball. She thanked the resident who came to speak on that topic. I)COUNCILMEMBER REMOVAL OF ITEMS FROM CONSENT CALENDAR FOR DISCUSSION None. J)CONSENT CALENDAR 1.Consideration and Approval of the Minutes of the June 17, 2025 Regular meeting. The purpose of this item is to approve the minutes of the June 17, 2025 Regular meeting. Approved. 2.Items Relating to the Appropriation of Federal Funds in the Community Development Block Grant (CDBG) and HOME Investment Partnership (HOME) Program Funds. A.Second Reading of Ordinance No. 097, 2025, Making Supplemental Appropriations in the Community Development Block Grant Fund. B.Second Reading of Ordinance No. 098, 2025, Making Supplemental Appropriations in the HOME Investment Partnerships Grant Fund. C.Second Reading of Ordinance No. 099, 2025, Making Supplemental Appropriations in the HOME Investment Partnerships Grant American Rescue Plan Act Fund. These Ordinances, unanimous ly adopted on First Reading on Ju ne 17, 2025, appropriate the City's Fiscal Year (FY) 2025 Community Development Block Grant (CDBG) Entitlement Grant and FY2025 Home Investment Partnerships Program (HOME) Participating Jurisdiction Grant from the Department of Housing and Urban Development (HUD), CDBG program income from FY2023 & FY2024 and HOME Program Income from FY2023 & FY2024, and supplemental funding to the FY21 HOME American Rescue Plan Act (HOME-ARP) Fund. All Ordinances Adopted on Second Reading. 3.Second Reading of Ordinance No. 100, 2025, Updating Various Provisions of the Code of the City of Fort Collins Related to Affordable Housing. This Ordinance, unanimously adopted on First Reading on June 17, 2025, conforms the definitions relating to affordable housing in the City Code to those in the Land Use Code, removes language for a program that was repealed, and removes the requirement of a specific fee amount when requesting affordable housing fee delays. Adopted on Second Reading. City of Fort Collins City Council Proceedings Page 290 July 1, 2025 Collectively, this input as part of/he third and final phase of community engagement has resulted in several refinements to the Strategic Trails Plan, in cluding pr oposed trail and plan language adjustments and further development of discrete recommendations. Beginning July 2025, staff will move forward on initiating the predevelopment phases for northeast and western trail alignments, including two spur trail projects. Staff will also pursue several near­ term plan recommendations, including the development of a FoCo Trails Program and administrative environmental review policy for trail development. Adopted. 20.Resolution 2025-068 Approving the 2025 Certifi cation to the Larimer County Assessor Pursuant to Colorado Revised Statutes Section 31-25-807(3)(a)(IV)(B) for the Downtown Development Authority Property Tax Increment. The purpose of this item is to certify to the Larimer County Assessor the percentages of property tax distributions to be allocated for the Downtown Development Authority by the Assessor as tax increment from the 2025 property taxes payable in 2026 to the City and to all other affected taxing entities. Adopted. 21.Resolution 2025-069 Making Appointments to the Downtown Development Authority Board. The purpose of/his item is to fill vacancies that will exist as of June 30, 2025. Adopted. END OF CONSENT CALENDAR Councilmember Pignataro moved, seconded by Councilmember Potyondy, to approve the recommended actions on items 1-21 on the Consent Calendar. The motion carried 5-0. K)CONSENT CALENDAR FOLLOW-UP (This is an opportunity for Councilmembers to comment on items adopted or approved on the Consent Calendar.) Councilmember Gutowsky welcomed the new DOA members to the board. Councilmember Potyondy celebrated that the City was moving forward with a new Strategic Trails Plan and commended the staff work on the Plan. Mayor Pro Tern Francis echoed Councilmember Potyondy's comments and thanked staff and community members who have worked on the Plan. L)STAFF REPORTS-None. City of Fort Collins City Council Proceedings Page 295 July 1, 2025 M)COUNCILMEMBER REPORTS Councilmember Susan Gutowsky •Commented on the grand opening of Poudre Fire Authority Station 7 in Laporte. •Commended the Juneteenth festivities at Foothills Mall. •Announced the upcoming Poudre Fire Authority graduatio n at the CSU Alumni Center. •Announced the 4th of July parade event. •Announced she will be seeking another Council term. Counci\member Melanie Potyondy •Commended staff members who recently presented at the Colorado Municipal League Conference in Breckenridge. Council member Tricia Canonico •Commended the World Refugee Day celebration last Saturday.•Commended the Juneteenth festivities at Foothills Mall. •Attended a tour of Elderhaus. Mayor Pro Tern Emily Francis •Announced the 4th of July parade event and fireworks. •Noted private fireworks are illegal and can have damaging impacts for veterans and pets. Clerk's Note: Mayor Pro Tern Francis catted for a break at 7:11 p.m., noting the meeting would resume in 10 minutes. N)CONSIDERATION OF ITEMS REMOVED FROM THE CONSENT CALENDAR FOR INDIVIDUAL DISCUSSION None. 0)CONSIDERATION OF ITEMS PLANNED FOR DISCUSSION 22.Public Hearing and Resolution 2025-059 Approving a First Amendment to the Amended and Restated Service Plan for Foothills Metropolitan District. Per the City's Financial Management Policy 10 -Metro Districts (the "Policy'), authorized by Resolution 2021-045, the procedures for conducting a hearing on metropolitan district service plan or plan amendment will be in accordance with the Council's adopted pr ocedures and Section 3. K. of the Policy, which sets the order of the proceedings on such a public hearing as follows: 1.Announcement of item; 2.Consideration of any procedural issues; 3.Explanation of the application by City staff; 4.Presentation by the applicant; 5.Public testimony regarding the application; 6.Rebuttal testimony by the applicant; 7.Councilmember questions of City staff and the applicant; and 8.Motion, discussion and vote by City Council. City of Fort Collins City Council Proceedings Page 296 July 1, 2025 In 2012, the District was organized to redevelop the then existing Foothills Mall (approval of/he formation of the District and its original Service Plan by City Council was by Resolution 2012- 084). Council approved the current Amended and Restated Service Plan for the Foothills Metropolitan District (the "District') on May 7, 2013 (Resolution 2013-044). Since the District's formation and redeve lopment, some of the planned activation has been successful. However, several factors have affected the commercial leasing of all property, which has impacted the revenues dedicated for debt service payment. To address the underperforming aspects, MXD Fort Collins, LLC (the "Current Developer) is currently designing a new redevelopment plan. The First Amendment supports this new approach to redevelopment by: 1.Increasing the maximum amount of debt the District can have outstanding. 2.Extending the length of the debt the District is allowed to incur and clarifying refunding. 3.Making other changes to ensure consistency with the new redevelopment plan. The First Amendment expands the list of eligible improvements but does not expand the list of eligible improvements for which the City or the Fort Collins Urban Renewal Authority (the "Authority') are obligated to participate in or contribute revenues to finance. This item is related to another item on the agenda, Resolution 2025-060, Approving a Development Agreement to Secure Public Benefits for Foothills Mall Redevelopment, which, if adopted, would approve a Public Benefits Agreement that would be effective upon the effective date of this Resolution 2025- 059. Staff is requesting that Council make the following motion to continue the public hearing and postpone consideration of this Resolution to allow the applicant additional time to draft and finalize details concerning the dedication of affordable housing in the related item Resolution 2025-060, Approving the Development Agreement to Secure Public Benefits for the Foothills Mall Redevelopment. Motion: "I move to continue the public hearing and postpone consideration of Resolution 2025- 059, Approving a First Amend ment to the Amended and Restated Service Plan for Foothills Metropolitan District, to July 15, 2025." Councilmember Pignataro moved, seconded by Councilmember Gutowsky, to continue the public hearing and postpone consideration of Resolution 2025-059, Approving a First Amendment to the Amended and Restated Service Plan for Foothills Metropolitan District to August 19, 2025. The motion carried 5-0. 23.Resolution 2025-060 Approving the Development Agreement to Secure Public Benefits for the Foothills Mall Redevelopment. The purpose of this item is to seek approval of a Development Agreement to Secure Public Benefits for Foothills Mall Redevelopment. This item is related to another item on the agenda, Resolution 2025-059 Approving a First Amendment to the Amended and Restated Service Plan for Foothills Metropolitan District. Staff is requesting that Council make the following motion to postpone consideration of this Resolution to allow the applicant additional time to draft and finalize details relating to the dedication of affordable housing in the Public Benefits Agreement. Motion: "I move to postpone consideration of Resolution 2025-060, Approving the Development Agreement to Secure Public Benefits for the Foothills Mall Redevelopment, to July 15, 2025." City of Fort Collins City Council Proceedings Page 297 July 1, 2025 Councilmember Pignataro moved, seconded by Councilmember Potyondy, to postpone consideration of Resolution 2025-060, Approving the Development Agreement to Secure Public Benefits for the Foothills Mall Redevelopment, to August 19, 2025. The motion carried 5-0. 24.Second Reading of Ordinance No. 107, 2025, Amending the Code of the City of Fort Collins to Cla rify the Conditions of Renewal of Existing Non-Primary Short Term Rental Licenses. This Ordinance, adopted on First Reading on June 17, 2025 by 4-3 (Nays: Ohlson, Gutowsky, Potyondy), amends the City Code to allow existing Non-Primary Short Term Rentals licenses to be renewed. On second reading, Council will have two options. The first option is the original language which allows for transfer of license upon sale. The second option removes the ability to transfer upon sale. To most effectively address the unintended concentration of Non-Primary Short-Term Rentals in this zone, staff recommends adoption of the second option. Beyond Council action, staff will continue to review and update policies and fee structures related to STRs. Any actions or recommendations will be provided through memo update. Ordinance No. 106, 2025 and Ordinance No. 107, 2025 were presented together on first reading. However, Ordinance No. 106, 2025, will be considered under the Consent Calendar section of the Agenda, and Ordinance No. 107, 2025, due to a split vote on first reading, is to be considered under the Discussion section of the Agenda. PUBLIC COMMENT Walter Abercrombie noted he is a resident of Old Town North and thanked Council for adopting Ordinance No. 106, 2025. He also thanked Council for recognizing that Old Town North is a residential neighborhood and urged Council not to allow STR transfers. He also requested additional changes beyond what is being considered, such as increasing fees and improving responsiveness with some of that extra revenue. Linda Abercrombie noted she is a resident of Old Town North and thanked Council for listening to their concerns. She was grateful that new licenses would not be allowed and urged Council not to allow transfers. She thanked Council for recognizing Old Town North is a residential neighborhood and wants to be like all of the other neighborhoods in Fort Collins with a sense of community. Sarah Payne noted she is a resident of Old Town North and thanked Council for approving Ordinance No. 106, 2025. She requested Council approve the amended Ordinance No. 107, 2025 that would not allow transfers. She stated many false narratives were provided tonight and commented on the property rights of permanent homeowners. She also encouraged Council and staff to find solutions that would reduce the number of STRs. Christine Dianni noted she and her husband have been residents of Old Town North for 18 years and stated the original vision of a New Urbanist community would have included commercial development that would have supported the residents who lived there. She stated she does not feel STRs fit that vision. She and her husband thanked Council for approving Ordinance No. 106, 2025 and urged Council to remove the ability to transfer STRs and to reduce the number of overall STRs. City of Fort Collins City Council Proceedings Page 298 July 1, 2025 Blair Oliver noted he is a resident of Old Town North and thanked Council for approving Ordinance No. 106, 2025. He urged Council not to allow STR transfers and to find a way lo reduce the number of overall STRs. He suggested STR fees need to be raised and oversight and enforcement need to be increased. He asked that their neighborhood be treated like all others. Harry Derderian noted he is a resident of Old Town North and requested that Council oppose the transferability for STRs. He stated he was surprised to hear about financial ruin being eminent for people who had invested in Old Town North and noted they will still have their licenses and continue to be able to operate their businesses. He concurred there are insufficient hotel rooms but stated Old Town North is an exciting neighborhood that should be treated like other neighborhoods in Fort Collins. He commented on the amount of time it will take to reduce the number of STRs even if transfers are not allowed. He encouraged Council to support residents over investors. Stevey Ertl noted he is a resident of Old Town North and owns a long-term rental in the neighborhood that has had no problems. He asked about the resources the City has allocated to enforcement. He thanked Council for passing Ordinance No. 106, 2025 and encouraged Council to support not allowing transfers. He stated homeowners are investors too and questioned why their investments are less important than those of investors. (Clerk's Note: Councilmember Ohlson joined the meeting at 7:29 p.m.) Paul Francisco thanked Council for approving Ordinance No. 106, 2025 and urged Council to support not allowing transfers for STRs. He noted this would not impact existing STR owners as they can continue to operate. He asked Council not to prioritize new investors over residents and stated the lodging problems need to be solved separately. He commented on the imbalance of STRs in this neighborhood and slated It has resulted in a complete lack of balance. Tami Bond thanked Council for listening and expressed support for not allowing STR transfers. She commented on the imbalance in the number of STRs in Old Town North and stated ii should be treated like other Fort Collins neighborhoods. Dolores Williams noted she owns two townhouses in Old Town North and staled she has great long-term renters. She noted properties can be used for things other than STRs and commented on the problems that can come from STRs with lack of cohesiveness. She thanked Council for approving Ordinance No. 106, 2025 and suggested allowing one-year licenses without renewals until the numbers become more reasonable. Dave Watkins thanked Council for halting STR lice nses in Old Town North and stated residents want to protect the livability, character, and safely of the neighborhood. He commented on the negative impacts of STRs and noted residents are investors as well. He staled the number of STR licenses is alarming and stated if the licenses are allowed to be transferred, nothing will change. He also encouraged stronger enforcement of STR rules and noise ordinances, including revocation of licenses for problem properties. Kerri Watkins stated she became a STR owner when this process started and commented on the ease and low cost of acquiring the STR license. She noted no one actually came to the property to inspect ii and stated the City is not enforcing any rules. She stated allowing license transfers will perpetuate the problems in the neighborhood and urged Council to prioritize residents over investors. Mark Driscoll noted he is a resident of Old Town North and urged Council to adopt option 1 which protects the ability to transfer STR licenses upon sale. He stated changing the rules midstream undermines trust and signals that Fort Collins is not a reliable place to invest or plan for the future. City of Fort Collins City Council Proceedings Page 299 July 1, 2025 He commented on the thoughtful community-driven process that led to the adopted zoning of the neighborhood in 2017 and discussed the financial benefits of STRs to the community. He stated he is not seeing the negative issues that have been discussed in his rental and noted property management is important. Kurt Kniegge noted he owns a property in Old Town North which he and his family lived in for a number of years then converted to a STR. He stated he has no other retirement income and would like to have the ability to transfer the license to his children. He urged Council to work on other solutions without restricting tr ansferability and stated the 40% number of STRs is inflated and would not be supported by the market. Kay Osentowski noted she was one of the first developers of Old Town North and provided some history of the evolution of the neighborhood. She stated the zoning designation was responsible for turning around the neighborhood and increasing interest. She commented on the economic benefits provided by STRs and stated they contribute to the vibrancy of the neighborhood and city. She stated transfers ensure this will continue and discussed ancillary jobs produced by STR's. She urged Council to approach this matter with the goal of fostering collaboration and establishing policies that address concerns. Drew Carpenter noted he owns property in Old Town North and used to live there. He asked Council to consider that there are a vast majority of homeowners that have not come to Council because they live peaceably with STRs. He stated limiting licenses and transfers would negatively impact financial viability for owners and the economic impact to the city. He commented on the vibrancy STRs bring to the neighborhood and stated those who are now complaining failed to do their due diligence when they purchased their properties. He stated blanket zoning changes are a gross overreaction to this issue. Josh Tinker noted he lives in Fort Collins and owns a STR in Old Town North, which he has run for five years without incident. He commented on problems with the second option of Ordinance No. 107, 2025, that removes the ability to transfer a STR license, stating it will do nothing to alleviate issues with unruly guests and unfairly punishes responsible owners who ensure guests are good neighbors. Additionally, he stated it would still take decades to accomplish the goal of reducing the number of STRs even if transfers are not allowed. He requested Council vote for option one and stated collaborative and sensible solutions need to focus on guest behavior and enforcement, not blanket restrictions. Bryan Willson noted that he and his wife built a home in Old Town North and stated they were attracted to the New Urbanist concept. He stated the growing prevalence of STRs has displaced many original owners and has created a very different experience with parking and behavioral issues on the weekends. He thanked Council for adopting Ordinance No. 106, 2025, and urged Council to consider adopting the second option of Ordinance No. 107, 2025. He expressed concern about the recent rush to obtain STR licenses stating having a 'rental neighborhood' designation will scare off potential long-term neighbors. He urged Council to examine solutions to roll back STR licensing and to continue to look for solutions to help heal the damaged neighborhood. Spencer Douthit noted he is the president of the HOA for Old Town North townhomes and stated that since the inception of STRs in the townhome community, they have not received a single complaint. He stated STRs can be located harmoniously with long-term residents and read a guest review he had received. He invited each Councilmember to explore the many positive guest reviews that have been received. Bill Kiester stated there were fewer than ten STRs when he purchased his home in Old Town North. He stated his biggest concern is with the non-primary STR licenses and stated their City of Fort Collins City Council Proceedings Page 300 July 1, 2025 The motion carried 6-0. P)RESUMED PUBLIC COMMENT Q)OTHER BUSINESS OB 1. Possible consideration of the initiation of new ordinances and/or resolutions by Councilmembers. OB 2. Consideration of a motion to cancel the Tuesday, August 5, 2025, Regular Council meeting: Councilmember Pignataro moved, seconded by Councilmember Canonico, pursuant to City Code Section 2-28(a), that Council cancel its regular meeting on Tuesday, August 5, 2025, due to Neighborhood Night Out. Mayor Pro Tern Francis encouraged residents to attend Neighborhood Night Out. The motion carried 6-0. R)ADJOURNMENT There being no further business before the Council, the meeting was adjourned ATTEST: City of Fort Collins City Council Proceedings Page 302