HomeMy WebLinkAboutMINUTES-10/05/1999-RegularOctober 5,1999
COUNCIL OF THE CITY OF FORT COLLINS, COLORADO
Council -Manager Form of Government
Regular Meeting - 6:00 p.m.
A regular meeting of the Council of the City of Fort Collins was held on Tuesday, October 5, 1999,
at 6:00 p.m. in the Council Chambers of the City of Fort Collins City Hall. Roll Call was answered
by the following Councilmembers: Bertschy, Byrne, Kastein, Martinez, Mason, and Weitkunat.
Councilmembers Absent: Wanner.
Staff Members Present: Fischbach, Krajicek, Roy.
Citizen Participation
Richard Dunn, 1405 Lindenwood Drive, read a prepared statement regarding the truck route ballot
issue and the relocation of Highway 14.
John Meleski, 2619 Featherstar Way, asked about the Council's Study Session discussions of the
boards and commissions and truck route issues.
Joe Dumais,1712 Westview Road, spoke regarding the truck route ballot issue and the use ofunused
Building Community Choices funds to find a viable truck route outside of the City.
Citizen Participation Follow-up
Councilmember Byrne spoke regarding transportation planning, the gap in funding for construction
of Vine as an arterial street, and the use of residual Building Community Choices funds.
Councilmember Kastein spoke regarding options for determining the use of Building Community
Choices funds if the truck route initiative fails.
Councilmember Weitkunat stated that it is likely that the truck route issue will continue to come
before Council until it is resolved.
Agenda Review
City Manager Fischbach withdrew item #12 Items Relating to the Alternative Analysis and
Construction oflntersection Improvements at the intersection of State Highway 14 (Mulberry) and
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October S, 1999
Lemay Avenue Utilizing Federal Congestion Mitigation and Air Quality (CMAQ) Funds from the
agenda.
Kelly Ohlson, 2040 Bennington Circle, withdrew item #11 Items Relating to the Issuance of City of
Fort Collins Downtown Development Authority Subordinate Tax Increment Revenue Bonds, Series
1999 from the Consent Calendar for discussion.
CONSENT CALENDAR
7. Consideration and adoption of the Council meeting minutes of September 7 1999
Second Reading of Ordinance No 146 1999 Appropriating Unanticipated Revenue in the
Transportation Services Fund and Authorizing the Transfer ofAppropriations for the Puroose
of Updating Access Control Plans for South College Avenue and Harmony Road.
Ordinance No. 146, 1999, which was unanimously adopted on First Reading on September
21, 1999, appropriates unanticipated revenue for the purpose of updating the Access Control
Plans (ACPs) for South College (US287) and Harmony Road (SH68).
9. Items Relating to the Appropriation of Proceeds from the Execution and Delivery of City of
Fort Collins Lease Certificates of Participation Series 1999
A. First Reading of Ordinance No. 147, 1999, Appropriating Proceeds from the
Execution and Delivery of City of Fort Collins Lease Certificates of Participation for
the Golf Enterprise Fund for Golf Course Improvements.
B. First Reading of Ordinance No. 148, 1999, Appropriating Proceeds from the
Execution and Delivery of City of Fort Collins Lease Certificates of Participation in
the Capital Projects Fund for the Downtown Intersection Renovation Project.
On September 7,1999, Council authorized the execution and deliveryof $3,360,000 of lease
certificates ofparticipation for Street and Recreational Improvements. The proceeds are now
being allocated specifically to the projects for which the certificates were issued.
10. First Reading of Ordinance No 149 1999 Appropriating Prior Year Reserves and
Unanticipated Revenue in Various Funds and Authorizing the Transfer of Appropriated
Amounts Between Funds.
The purpose of the annual clean-up ordinance is to combine dedicated revenues or reserves
that need to be appropriated before the end of the year to cover the related expenses that were
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October 5, 1999
not anticipated and, therefore not included in the 1999 budget. The unanticipated revenue
is primarily from fees, charges, rents, contributions and grants that have been paid to City
departments to offset specific expenses. Prior year reserves are primarily being appropriated
for unanticipated operation expenses from reserves that are aside for that purpose.
This Ordinance appropriates prior year reserves and unanticipated revenue in various City
funds, and authorizes the transfer of appropriated amounts between funds. The City Charter
permits the City Council to provide by ordinance for payment of any expense from prior year
reserves. The Charter also permits the City Council to appropriate unanticipated revenue
received as a result of rate or fee increases or new revenue sources. Additionally, it
authorizes the City Council to transfer anyunexpended appropriated amounts from one fund
to another upon recommendation of the City Manager provided the purpose for which the
transferred funds are to be expended remains unchanged; or the purpose for which they were
initially appropriated no longer exists; or the proposed transfer is from a fund or capital
project account in which the amount appropriated exceeds the amount needed to accomplish
the purpose specified in the appropriation ordinance.
11. Items Relating to the Issuance of City of Fort Collins Downtown Development Authority
Subordinate Tax Increment Revenue Bonds Series 1999.
A. First Reading of Ordinance No. 150, 1999, Authorizing the Issuance of City of Fort
Collins Downtown Development Authority Taxable Subordinate Tax Increment
Revenue Bonds Series 1999 in the Amount of $750,000 for the Purpose of Financing
Certain Capital Improvements and Capital Projects.
B. First Reading of Ordinance No. 151, 1999, Appropriating Proceeds from the Issuance
of City of Fort Collins, Colorado, Downtown Development Authority Taxable
Subordinate Tax Increment Revenue Bonds, Series 1999, for the Purpose of Making
Certain Capital Improvements in the Downtown Area of Fort Collins and
Appropriating Revenues in the Tax Increment Fund.
The City of Fort Collins created the Downtown Development Authority to make desired
improvements in the downtown area. Through tax increment financing, the DDA has made
significant contributions to the redevelopment and improvement of the downtown area.
These two Ordinances provide funding from unreserved fund balance in the DDA Debt
Service Fund to make additional improvements in the downtown area. The first Ordinance
issues short term bonds for the projects which will be paid from the tax increment revenue.
The second Ordinance appropriates the proceeds in to the Capital Projects Fund for the
various projects.
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October 5, 1999
12. Items Relating to the Alternative Analysis and Construction of Intersection Improvements
at the Intersection of State Highway 14 (Mulberry) and Lemay Avenue Utilizing Federal
Congestion Mitigation and Air Ouality (CMAO) Funds.
A. Resolution 99-117 Authorizing the Mayor to Execute an Intergovernmental
Agreement with the Colorado Department of Transportation Allocating $1,375,721
for the Analysis and Determination of Appropriate Intersection Improvements and
the Construction of Said Improvements at the Intersection of State Highway 14 and
Lemay Avenue.
B. First Reading of Ordinance No. 152,1999, Appropriating Unanticipated Revenue and
Prior Year Reserves in the Transportation Services Fund and Authorizing the
Transfer of Appropriations from the Street Oversizing Fund to the Transportation
Services Fund for the Analysis and Determination of Appropriate Intersection
Improvements and the Construction of Improvements at the Intersection of State
Highway 14 and Lemay Avenue.
The City of Fort Collins successfully applied for Federal CMAQ funds for an Alternative
Analysis of intersection improvements and the construction of those determined
improvements at the intersection of SH14 and Lemay Avenue. The intersection is currently
experiencing both delay and accident problems. Pedestrian connectivity is also an existing
problem and this project will build a pedestrian bridge across the Poudre River and sidewalk
along Mulberry to connect Lemay to Riverside. Approximately $300,000 of the project is
dedicated to these pedestrian improvements.
The proposed Mulberry Lemay Crossing project (WalMart) will add considerable traffic to
an existing problem. Although the Mulberry Lemay Crossing PUD will be financially
responsible for traditional improvements to the intersection, staff is also interested in
investigating the design of a modem roundabout at this location. The analyses will consider
traditional improvements such as right turn lanes and double left turn lanes against a modern
roundabout intersection.
13. Resolution 99-118 Finding Substantial Compliance and Initiating Annexation Proceedings
for the Brookfield Annexation.
This is a request for a 100% voluntary annexation. The property being considered for
annexation is approximately 43.01 acres in size and is located south of East Harmony Road,
east of Cinquefoil Lane alignment, west of County Road 7 and north of County Road 36. The
existing uses of the properties are agricultural in Latimer County. The proposed zoning for
this annexation is Harmony Corridor District (HC).
October 5, 1999
The proposed Resolution states that it is the City's intent to annex this property and directs
that the published notice required by State law be given of the Council's hearing to consider
the needed annexation ordinance. The hearing will be held at the time of First Reading of
the annexation and zoning ordinances on November 16,1999. Not less than thirty days prior
published notice is required by State law.
14. Routine Easements.
A. Slope easement from D.A. and Zenith L. Khanzada, located west of Shields and north
of La Eda Lane. Monetary consideration: $10. (See Map #1)
B. Permanent storm drainage easement from Larry D. and Barbara J. Wilson, located
between Trilby and La Eda Lane. Monetary consideration: $0. (See Map #2)
C. Temporary drainage and grading easement from Dalco, LLLC, located west of
Shields. Monetary consideration: $10. (See Map #3)
D. Temporary drainage and grading easement from Dalco, LLLC, located west of
Shields and south of Trilby. Monetary consideration: $10. (See Map #4)
E. Drainage and grading easement from Dalco, LLLC, located east of Shields and south
of Trilby. Monetary consideration: $10. (See Map #5)
F. Drainage easement from Dalco, LLLC, located east of Shields and south of Trilby.
Monetary consideration: $10. (See Map #6)
G. Drainage easement from Dalco, LLLC, located south of Trilby and northwest of the
railroad tracks. Monetary consideration: $10. (See Map #7)
H. Slope easement from Mike and Cheryl Peregoy, located west of Shields and north of
Trilby. Monetary consideration: $10. (See Map #8)
Temporary grading easement from Marvin G. and Dolores C. Heinrichs, located
south of Trilby and east of County Road 19. Monetary consideration: $10. (See Map
#9)
Slope easement from Bob Sendgraff, located west of Shields and north of Trilby.
Monetary consideration: $10. (See Map #10)
K. Slope easement from D.A. and Zenith L. Khanzada, located north of La Eda Lane
and west of Shields. Monetary consideration: $10. (See Map #11)
October 5, 1999
L. Right-of-way dedication from Dalco, LLLC, located east of Shields and south of
Trilby. Monetary consideration: $10. (See Map #12)
M. Right-of-way dedication from Dalco, LLLC, located along the south side of Trilby
and east of Shields. Monetary consideration: $10. (See Map #13)
N. Right-of-way dedication from Dalco, LLLC, located along the west side of Shields
and north of Bonn Homme Richard. Monetary consideration: $10. (See Map #14)
O. Right-of-way dedication from Dalco, LLLC, located along the west side of Shields
and north of Bonn Homme Richard. Monetary consideration: $10. (See Map #15)
Ordinances on Second Reading were read by title by City Clerk Wanda Krajicek.
Second Reading of Ordinance No. 146, 1999, Appropriating Unanticipated Revenue in the
Transportation Services Fund and Authorizing the Transfer ofApprooriations for the Purpose
of Updating Access Control Plans for South College Avenue and Harmony Road.
Ordinances on First Reading were read by title by City Clerk Wanda Krajicek.
9. Items Relating to the Appropriation of Proceeds from the Execution and Delivery of City of
Fort Collins Lease Certificates of Participation Series 1999.
A. First Reading of Ordinance No. 147, 1999, Appropriating Proceeds from the
Execution and Delivery of City of Fort Collins Lease Certificates of Participation for
the Golf Enterprise Fund for Golf Course Improvements.
B. First Reading of Ordinance No. 148, 1999, Appropriating Proceeds from the
Execution and Delivery of City of Fort Collins Lease Certificates of Participation in
the Capital Projects Fund for the Downtown Intersection Renovation Project.
10. First Reading of Ordinance No. 149, 1999, Appropriating Prior Year Reserves and
Unanticipated Revenue in Various Funds and Authorizing the Transfer of Appropriated
Amounts Between Funds.
11. Items Relating to the Issuance of City of Fort Collins Downtown Development Authority
Subordinate Tax Increment Revenue Bonds, Series 1999.
A. First Reading of Ordinance No. 150, 1999, Authorizing the Issuance of City of Fort
Collins Downtown Development Authority Taxable Subordinate Tax Increment
Revenue Bonds Series 1999 in the Amount of $750,000 for the Purpose of Financing
Certain Capital Improvements and Capital Projects.
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October 5, 1999
B. First Reading of Ordinance No. 151,1999, Appropriating Proceeds from the Issuance
of City of Fort Collins, Colorado, Downtown Development Authority Taxable
Subordinate Tax Increment Revenue Bonds, Series 1999, for the Purpose of Making
Certain Capital Improvements in the Downtown Area of Fort Collins and
Appropriating Revenues in the Tax Increment Fund.
Councilmember Bertschymade a motion, seconded by Councilmember Mason, to adopt and approve
all items not withdrawn from the Consent Calendar. The vote on the motion was as follows: Yeas:
Councilmembers Bertschy, Byme, Kastein, Martinez, Mason, and Weitkunat. Nays: None.
THE MOTION CARRIED
Consent Calendar Follow-up
Councilmember Bertschy spoke regarding golf course improvements that will be accomplished
through the adoption of item #9, Items Relating to the Appropriation of Proceeds from the
Execution and Delivery of City of Fort Collins Lease Certificates of Participation Series 1999.
Staff Reports
City Manager Fischbach reported on the City's receipt of the Savvy Award for public information,
receipt of awards for City Park Nine golf course, a Liquor Licensing Authority resignation, the BMX
trails course on City property, and the new online reporting form called Eyes and Ears of Fort
Collins.
Mayor Martinez stated that he would request discussion under Other Business regarding the Liquor
Licensing Authority resignation.
Appeal of the August 5, 1999, Determination of the Planning
and Zoning Board to Approve the Provincetowne PUD,
Filing Two - Preliminary, Planning and Zoning Board Upheld
The following is staff s memorandum on this item:
"On August 5, 1999, the Planning and Zoning Board approved the Provincetowne PUD, Filing
Two- Preliminary for 331 residential dwelling units (190 single family lots and 141 multi family
townhomes) on 70.00 acres.
The property is zoned LMN - Low Density Mixed Use Neighborhood (as of the effective date of
March 28, 1997 for the new Land Use Code). The property is located on the south side of Trilby
Road at Brittany Drive, west of South Lemay Avenue, east of South College Avenue, and north of
County Road 32.
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October 5, 1999
On August 16, 1999, a Notice of Appeal was received by the City Clerk's office regarding the
decision ofthe Planning and Zoning Board. An Amended Notice of Appeal was received by the City
Clerk's office on September 3, 1999. In the Notice of Appeal from the Appellants David G. Evans,
Doug Sparks, and Mark Menke, it is alleged that:
I. No hearingjurisdiction conferred on Planning and Zoning Board, in that, execution by the
City Manager of the Agreement of Purchase and Sale of Real Property (hereinafter
"Purchase Agreement') by and between the City of Fort Collins and Pridemark
Development Company, LLC, dated April 2, 1996, was specifically reserved by Section 4 of
Ordinance No. 41, 1996, to the Mayor and not the City Manager. The execution of said
Purchase Agreement by the City Manager violated the specific requirements of Section 4 of
Ordinance No. 41, 1996 as well as the requirements of Section 23-111(a) ofthe Code ofthe
City of Fort Collins which vests sole authority to sell real property upon the City Council
pursuant to a duly enacted ordinance.
IT No hearingjurisdiction conferred on Planning and Zoning Board, in that, execution by the
City Manager, on or about April 12, 1995, of an agreement on behalf of the City of Fort
Collins entitled "First Addendum to Agreement of Purchase and Sale of Property"
(hereinafter "First Addendum') by and between the City of Fort Collins and Pridemark
Development Company, LLC, adding Paragraph 27 to the Agreement of Purchase and Sale
of Real Property dated April 2, 1996, was void, in that the First Addendum could not, as a
matter of law, modify an executory agreement.
III. No hearingjurisdiction conferred on Planning andZoningBoard, in that, delegation to City
Manager of the power to sell the real property pursuant to Section 5 of Ordinance No. 41,
1996, was an improper delegation oflegislative discretion which violated the requirements
of Section 23-111(a) ofthe Code ofthe City of Fort Collins which vests sole authority to sell
real property upon the City Council pursuant to a duly enacted ordinance.
IV. No hearing jurisdiction conferred on Planning and Zoning Board, in that, delegation to
Pridemark Development Company, LLC of the power to restructure the sale of the real
property from a purchase to an option to purchase pursuant to the First Addendum to
Agreement ofPurchase and Sale ofReal Property, was an improper delegation oflegislative
discretion which violated the requirements of Section 23-111(a) of the Code of the City of
Fort Collins which vests sole authority to sell real property upon the City Council pursuant
to a duly enacted ordinance.
V. No hearingjurisdiction conferred on Planning and Zoning Board, in that, Applicant nor its
predecessor in interest, as a matter of law and pursuant to filing requirements of Section 29-
526 — Land Development Guidance System for Planned Unit Developments and Ordinance
No. 161, 1996 was the owner of the subject parcel of real property at the time of the filing
on March 27, 1997, of the Application with the Current Planning Department requesting
Planned Unit Development - Preliminary Plan approval and approval for a Preliminary
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October 5, 1999
Subdivision Plat nor was Applicant given legal authority to execute the Application as filed
nor prosecute such Application on beha f of the record owner, the City of Fort Collins.
VI. No hearingjurisdiction conferred on Planning and Zoning Board, in that, Applicant nor its
predecessor in interest, filed, in a timely manner, a complete application as required by
Section 29-526 et seq. — Land Development Guidance System for Planned Unit
Developments and Ordinance No. 161, 1996.
VII. No hearingjurisdiction conferred on Planning and Zoning Board, in that, Applicant nor its
predecessor in interest, as a matter of law and pursuant to filing requirements of Section 29-
526— LandDevelopment Guidance System for Planned Unit Developments and Ordinance
No. 161, 1996 was the owner of the subject parcel of real property at the time of the filing
on March 27, 1997, of the Application with the Current Planning Department requesting
Planned Unit Development - Preliminary Plan approval and approval for a Preliminary
Subdivision Plat nor was Applicant given legal authority to execute the Application as f led
nor prosecute such Application on behalf of the record owner, the City of Fort Collins.
VIII. No hearingjurisdiction conferred on Planning and Zoning Board, in that, the Planning and
Zoning Board failed to give timely notice of August 5, 1999, hearing.
IX. No hearingjurisdiction conferred on Planning and Zoning Board, in that, the notice of the
Planning and Zoning Board dated July 19, 1999, for the hearing of August 5, 1999, was
insufficient to conferjurisdiction upon the Planning and Zoning Board.
X. Planning and ZoningBoardfailedtomakerequiredfindings,inthat,Section29-526Kofthe
Land Development Guidance SystemforPlanned Unit Developments requires, "Thedecision
of the Planning and Zoning Board on any application for a variance shall be set forth in
writing in the minutes of the meeting of the Board".
XI. Applicant failed to sustain the burden of proof in seeking the variance to the City of Fort
Collins Solar Orientation Ordinance, in that, Applicant presented no evidence which would
demonstrate that the granting of the variance would neither be detrimental to the public
good nor impair the intent and purposes of Section 29-526(2)A-1/A-1.1 or that Applicant
was entitled to the variance by reason of exceptional conditions or difficulties with regard
to solar orientation or access, and that undue hardship would be caused to the Applicant by
the strict application of the provisions of Section 29-526(2)A-11A-1.1.
XII. The Planning and Zoning Board considered evidence which was substantially false or
grossly misleading & Planning and Zoning Board failed to receive all relevant evidence
offered by the Appellants.
The attached documents include:
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October 5, 1999
* Amended Appeal (dated and received September 3, 1999)
* Staff response to the appeal
* StaffReport, with recommendation, to the Planning and ZoningBoardforitsAugust5,1999
public hearing
* HandoutspertainingtotheProvincetownePUD,FilingTwodevelopmentproposalthatwere
presented to the Planning and Zoning Board at the August 5, 1999 public hearing
* Minutes of the Meeting Before the Planning and Zoning Board, held Thursday, August 5,
1999
Theprocedures for deciding the appeals are described in Chapter 2, Article 11, Division 3 of the City
Code. "
City Attorney Roy explained the procedures for the hearing of appeals and the options available to
the City Council after hearing the appeal.
Mayor Martinez outlined the time limits for presentations and rebuttals by the appellants and
opponents.
Steve Olt, CityPlanner, presented a vicinity map showing the location of the subject property, stated
that the property is zoned L-M-N, and outlined the history of consideration of the development
proposal and the filing of the appeal. He summarized the 12 allegations set forth in the appeal.
David G. Evans, 6806 Deerhurst Court, spokesperson for the appellants, asked that the City Council
overturn the decision of the Planning and Zoning Board approving the Provincetowne PUD Filing
2 and granting a variance to the City Solar Orientation Ordinance. He asked that the Council take
note of the 12 grounds of appeal set forth in the Notice of Appeal and stated that his presentation
would focus on the following five grounds: (1) The Board lacked the requisite jurisdiction to conduct
a hearing and render a decision in this matter in that the applicant had no legal or equitable interest
in the real property which was the subject of the Board decision; (2) The Board lacked the requisite
jurisdiction to conduct a hearing and render a decision in this matter in that the applicant had no legal
or equitable interest in the real property subsequent to September 19, 1997 or subsequent to March
3, 1998; (3) The Board lacked the requisite jurisdiction to conduct a hearing and render a decision
in this matter in that the notice of the Board dated July 19, 1999 failed to set forth with specificity
the nature of the project and requested approval, nor did it specifically set forth that the applicant was
seeking a solar orientation variance; (4) The Board failed to make the required findings relating to
the granting of the solar orientation variance; and (5) The applicant failed to sustain the burden of
proof in seeking a solar orientation variance. He presented details regarding specific issues relating
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October 5, 1999
to each of these five presentation issues and spoke regarding the execution of an agreement of
purchase and sale and addenda referenced in the appeal.
Brock Chapman, representing the applicant Kaufinan & Broad, 8401 East Belleview Suite 200,
Denver, Colorado 80237, introduced project team members. He stated that the applicant has
reviewed the notice of appeal and a staff memo to City Council dated September 27, 1999. He asked
for clarification that the staff memo is part of the public record.
City Attorney Roy stated that the staff memo dated September 27, 1999 is part of the public record
and that the question is whether the memo should be made part of the record of these proceedings
or whether it is new evidence.
Mayor Martinez inquired if there were any objections on the part of the appellants to the inclusion
of the staff memo dated September 27, 1999 as part of the record for these proceedings.
Mr. Evans agreed to the inclusion of the staff memo dated September 27, 1999 as part of the record
for the purposes of having a full hearing on the matter.
Mr. Chapman stated for the record that the applicant, Kaufinan & Broad, is in full and complete
agreement with the September 27,1999 staff memo to the City Council. He stated that the purchase
contract and subsequent addenda referenced in the appeal were executed and approved properly in
accordance with the City Code, and therefore the purchase agreement is valid and binding and gives
the applicant proper ownership and interest in the property. He stated that the City Manager acted
with proper delegation of authority from the City Council and that the applicant filed the application
with full knowledge, authority and consent from the owner (the City). In addition, the applicant at
the time of filing of the application was an owner in equitable interest in the subject property. He
stated that the applicants clearly received actual notice of the public hearing and that the solar
orientation variance request is not required to be listed in the notification of public hearing. He
noted that information regarding storm drainage was heard by the Planning and Zoning Board prior
to a vote. He stated that based on the information contained in the public record and the information
presented at this appeal hearing, the Board properly interpreted and applied the Code and/or Charter
in reaching a unanimous decision approving the Provincetowne application. He stated that the Board
conducted a fair hearing, operated within its jurisdiction and authority, followed its rules and
procedures, considered evidence relevant to its findings, and properly heard all relevant information
offered by the appellant. He urged Council to reference the staff memo of September 27, 1999,
carefully consider the facts, the recommendation of the staff, and the unanimous decision of the
Planning and Zoning Board.
Mr. Evans, representing the appellant, asked that all of the grounds for appeal set forth in the notice
of appeal be considered.
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October 5, 1999
Mr. Chapman, representing the applicant, stated that the solar orientation variance was requested as
a result of comments received throughout the design process and spoke regarding conformance with
the City street standards.
Councilmember Mason asked about the change that required the variance to the solar orientation
with respect to the inclusion of alleyways and street access. Sherri Wamhoff, Development Review
Civil Engineer, stated that the City's street standards provide that the use of a narrow residential
street requires the use of an alley for driveway access and that the development plan was modified
to meet the standards and requirements.
Councilmember Mason asked how frequently solar orientation variances are requested. Olt stated
that a number of requests for such variances have been received by the City.
Councilmember Weitkunat asked about the process to be followed in Council's consideration of the
appeal. City Attorney Roy stated that the Council would need to address the question of whether the
appellant was denied a fair hearing for any of the reasons stated, and if the Council finds that there
was a fair hearing it would need to address any allegations regarding failure to properly interpret and
apply the Code.
Councilmember Weitkunat asked for clarification concerning the grounds regarding jurisdictional
questions and ownership ofthe property. City Attorney stated that the Council has received evidence
from both the appellant and staff regarding these matters.
Councilmember Kastein asked about drainage issues discussed by the Planning and Zoning Board.
Glenn Schleuter, Senior Stormwater Engineer for Development Review, spoke regarding stormwater
issues for the development.
Mayor Martinez asked about drainage for the development. Schleuter described the roadside
drainage ditch and culverts and the easement dedicated for stormwater purposes.
Councilmember Kastein asked about the requirements for notice of the Planning and Zoning Board
hearing. Paul Eckman, Deputy City Attorney, outlined the Code requirements for such notice.
Mr. Evans spoke regarding Constitutional interpretations and court rulings regarding notice of
hearings.
Mayor Martinez asked about the allegation that the notice was not timely. Olt stated that the notice
was dated July 19, 1999 and postmarked 16 days prior to the public hearing on July 20, 1999 and
that the public hearing occurred on August 5, 1999. City Manager Fischbach stated that this was
proper notice. City Attorney Roy stated that the question before Council is whether the fact that one
kind of notice was late or that the notice failed to specifically identify the fact that there would be
a request for a variance deprived the appellants of a fair hearing. He stated that staff has taken the
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October 5, 1999
position that the notice was legally adequate and spoke regarding case law which has generally found
that notice issues are moot when someone has a reasonable opportunity to be heard and does show
up at the hearing. Eckman stated that the Constitutional requirements for notice can be met by
publication and posting.
Mr. Evans stated that the public participation portion of the Planning and Zoning Board meeting was
closed before the variance and drainage issues were brought to the floor for discussion. Eckman
stated that the staff report of August 5, 1999 included information regarding the variance and was
available for public inspection.
Councilmember Mason asked when and how the staff reports are made available. Olt stated that
staff reports are printed two weeks prior to the public hearing and are available for public inspection
a week and a halfprior to the hearing. City Manager Fischbach stated that according to the transcript
the variance was first noted during the staff presentation which occurred prior to the applicant's and
public's testimony.
Mayor Martinez asked for clarification regarding how such information is made public. Bob
Blanchard, Director of Current Planning, stated that staff reports and other records are routinely
available to the public in advance of hearings.
Councilmember Weitkunat asked about the notification regarding variances. Blanchard stated that
a variance would be requested during the development review process and that such request becomes
part of the record and staff presentations.
Mr. Chapman stated that the staff presentation prior to the public hearing clearly stated that a
variance was being requested. He requested additional staff clarification regarding storm drainage
issues.
Councilmember Weitkunat suggested a process for considering and making a determination
regarding each of the grounds.
Councilmember Bertschy asked for clarification regarding the continuation of input from the
appellant and opponent. City Attorney Roy stated that at this point in the proceedings it is
appropriate for staff or any of the parties -in -interest to respond to specific questions of the Council.
Mayor Martinez requested additional information regarding storm drainage issues. Schleuter spoke
concerning drainage ditch issues.
Mark Menke, 901 Deerhurst Circle, appellant, addressed concerns regarding drainage basins and
drainageways.
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October 5, 1999
Councilmember Bertschy noted that several grounds relate to jurisdictional issues and asked for
clarification regarding authority to execute property acquisition agreements. City Attorney Roy
stated that real estate transactions are typically handled by the execution by the City Manager of a
contingent agreement for the sale of City property subject to Council approval.
Councilmember Weitkunat made a motion, seconded by Councilmember Bertschy, to find that the
Planning and Zoning Board had jurisdiction to hear the application and that the appellant was not
denied a fair hearing.
Councilmember Weitkunat stated that the process with regard to the real estate agreement followed
standard procedure and that physical evidence has been received that resolve the jurisdictional and
property ownership questions.
The vote on the motion was as follows: Yeas: Councilmembers Bertschy, Byrne, Kastein, Martinez,
Mason, and Weitkunat. Nays: None.
THE MOTION CARRIED
Councilmember Kastein made a motion, seconded by Councilmember Weitkunat, to find that the
appellants were not denied a fair hearing because of deficiencies in the notice, that the evidence
presented was not grossly misleading or false, and that the Board did properly receive all relevant
evidence.
Councilmember Mason asked about the nature of the notice required by the LDGS. Eckman stated
that the notice is not required by the Constitution and is required by the LDGS, which also states that
failure to mail the notice will not affect the validity of the hearing.
Mayor Martinez expressed a concern regarding the testimony of the appellant that notice was not
sufficient regarding the variance.
Councilmember Kastein noted that the solar variance was mentioned in the staff presentation and
that information about the variance was included in the staff report which was available for public
inspection.
Councilmember Mason spoke regarding the development review process, efforts made to provide
notification regarding hearings, and the need for neighborhoods to review the constantly changing
files that are available for inspection.
The vote on the motion was as follows: Yeas: Councilmembers Bertschy, Byrne, Kastein, Mason,
and Weitkunat. Nays: Mayor Martinez.
THE MOTION CARRIED
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October 5, 1999
Councilmember Weitkunat made a motion, seconded by Councilmember Bertschy, to find that the
Planning and Zoning Board did properly interpret and apply all relevant provisions of the Charter
and Code with regard to the timely filing and completeness of the application and did conduct a fair
hearing.
Councilmember Kastein asked about the PUD submittal checklist. Olt spoke regarding the checklist
and submittal process. Blanchard spoke regarding the difference between completeness and
adequacy of applications.
Councilmember Mason asked if the Current Planning Department uses a written checklist for
submittals. Blanchard stated that written checklists are used and that a checklist is part of the record
for this development.
The vote on the motion was as follows: Yeas: Councilmembers Bertschy, Byrne, Kastein, Martinez,
Mason, and Weitkunat. Nays: None.
THE MOTION CARRIED
Councilmember Weitkunat asked about the procedure for making findings for variances. Eckman
stated that the LDGS requires that the decision of the Board shall be set forth in writing in the
meeting minutes and sets forth the conditions for granting of a variance. He spoke regarding the
implicit adoption of findings set out in the staff report.
Councilmember Weitkunat made a motion, seconded by Councilmember Kastein, to find that the
Planning and Zoning Board properly interpreted and applied all relevant provisions of the Code and
Charter with regard to the variance findings and did conduct a fair hearing.
Mayor Martinez expressed a concern that no findings were stated by the Board.
Councilmember Mason noted that the Board receives a staff report, and the Board implicitly votes
in the affirmative to the items included in the staff report.
The vote on the motion was as follows: Yeas: Councilmembers Bertschy, Byrne, Kastein, Mason,
and Weitkunat. Nays: Mayor Martinez.
THE MOTION CARRIED
Councilmember Weitkunat made a motion, seconded by Councilmember Bertschy, to uphold the
decision of the Planning and Zoning Board regarding the Provincetowne PUD Filing 2, Preliminary
based on the record and relevant provisions of the Code and Charter.
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October 5, 1999
Councilmember Kastein spoke regarding the concerns of the neighborhoods in the area and noted
that the issue before Council is a determination regarding the appeal rather than those neighborhood
concerns.
Mayor Martinez expressed concerns regarding whether the hearing was 100% fair and noted that he
had voted in opposition to some of the above motions.
The vote on the motion was as follows: Yeas: Councilmembers Bertschy, Byrne, Kastein, Mason,
and Weitkunat. Nays: Mayor Martinez.
THE MOTION CARRIED
Public Hearing on the 2000 and 2001
Recommended Biennial Budget, Held
The following is staff's memorandum on this item.
"Executive Summary
This is the second official Public Hearing on the City Manager's 2000 and 2001 Recommended
Biennial Budget for the City of Fort Collins. A first Public Hearing was held on September 21,
1999."
Father Douglas Hunt, Holy Family Catholic Church, spoke regarding the need for assistance for
non-English speaking persons at the library.
Edward Jakubauskas, 801 Warren Landing, Library Board Chair, spoke in support of funding for
technology and diversity at the library.
Betty Maloney, 1309 City Park Avenue, spoke in support of funding for land banking for affordable
housing and also for library and museum support.
Larry Webber, 139 Pearl, Chairman of Friends of the Library, expressed support for library funding
for staffing and materials.
Myme Watrous, 324 North Roosevelt Avenue, President of the Fort Collins Historical Society,
expressed the support of the Historical Society for funding for the museum.
Corrine Govan, 1304 Shamrock, representing Art's Alive Board of Directors, spoke in support of
funding for Art's Alive.
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October 5. 1999
Ayleen Burns, 1113 Oak Leaf Court, Cultural Resources Board member, expressed support for
museum funding.
Mary Crow, no address given, State of Colorado poet laureate, spoke in support of funding for Art's
Alive.
Gaston Leone, no address given, Harris Bilingual student, spoke in support of library funding.
Jeff Eighmy, 737 Dennison Avenue, Utility Board member, spoke in support of the continued use
of renewable energy such as wind power.
Judy McDonald, Poudre School District Library Director, spoke in support of library
Randy Fischer, 3007 Moore Lane, Natural Resources Advisory Board Chair, spoke in support of
inclusion of funding for increasing solid waste diversion rates, adequate code enforcement for LDGS
environmental conditions placed on development, air quality programs, community separator plan,
and water quality monitoring.
Nancy Banks, Coordinator of LINC Summer Reading Program, supported library funding.
Martha Rhoden, no address given, spoke regarding funding for a recycling center and for the
community separator program.
Phil Friedman, 201 South Grant Avenue, former Natural Resources Advisory Board member, spoke
in support of funding for an air quality monitoring station, baseline water quality monitoring, and
a recycling center and centralized drop-off.
Karen Warren, 1504 West Mountain, spoke in support of funding for Art's Alive and stated that
approximately 50 people were involved in a walk to City Hall demonstrating support for the arts.
Gina Janett, 730 West Oak, spoke regarding a need for additional funds for an air quality monitoring
station and the community separator project.
Sally Craig, 1409 South Summitview, Planning and Zoning Board member, spoke in support of
funding for air and water quality monitoring, central recycling, and the community separator
Glen Colton, 625 Hinsdale Drive, Planning and Zoning Board member, spoke in support of funding
for the community separator project and Code enforcement.
Jeffrey Battle, Executive Director of the Humane Society, spoke regarding increased operating costs
for the Humane Society and requested an increase in funding for the year 2000 to $257,000.
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October S, 1999
Pam Stevens, 2828 Silverplume Drive, spoke in support of funding for a recycling center.
David Lauer, 1404 Robertson, Water Board member, spoke in support of funding for Code
enforcement and the community separator project.
Kelly Ohlson, 2040 Bennington Circle, spoke regarding the budget process and the scheduling of
the budget hearing after a land use appeal. He supported funding for air and water quality
monitoring, recycling, the community separator project, and code enforcement.
Nancy York, 130 South Whitcomb, Air Quality Advisory Board member, spoke in support of
funding for recycling and an air quality monitoring station.
John Meleski, 2619 Featherstar Way, spoke in support of library funding and urged Council to
consider a board to look at the details of the budget.
Alan Apt, 1406 Freedom Lane, spoke in support of funding to address environmental concerns such
as air quality and recycling.
Rudy Maes, 1601 North College Avenue #134, Library Board member, supported library funding.
Councilmember Bertschy requested additional information regarding the community separator
project and the Humane Society.
Councilmember Mason asked for an estimate regarding the cost of water quality monitoring and
summary of Art's Alive commitment.
City Manager stated that Council and public input will be reviewed and options and implications will
be considered prior to the Study Session discussion on the budget.
Councilmember Weitkunat requested a cost estimate for relocating the existing air quality
monitoring station.
Councilmember Byrne stated that he would introduce discussion regarding transportation funding
strategy at the Study Session.
Councilmember Mason requested a one -page summary regarding the discussions of the previous
Council regarding commitments for the Art's Alive program.
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October 5, 1999
Ordinances Relating to the Issuance of City of Fort Collins
Downtown Development Authority Subordinate Tax
Increment Revenue Bonds Series 1999 Adopted on First Reading
The following is staff s memoradum on this item.
"Financial Impact
At the end of 1998, the Downtown Development Authority Debt Service Fund held $630, 000 of
unreserved fund balance. By the end of 1999, the unreserved fund balance is projected to grow to
approximately $900,000. The DDA Board and the staff recommend using a portion of the
unreserved fund balance to make capital improvements in the downtown area consistent with the
mission of the Authority. Over the ensuing years, the projects receiving the benefit through the
capital improvements will repay the value of the projects through increased tax increment. The
DDA debt service fund has sufficient revenue to meet all required debt service payments and reserve
requirements for 1999 through 2006
Executive Summary
A. First Reading of Ordinance No. 150, 1999, Authorizing the Issuance of City ofFort Collins
Downtown Development Authority Taxable Subordinate Tax Increment Revenue Bonds
Series 1999 in the Amount of $750,000 for the Purpose of Financing Certain Capital
Improvements and Capital Projects.
B. First Reading of Ordinance No. 151, 1999, Appropriating Proceeds from the Issuance of
City ofFort Collins, Colorado, Downtown DevelopmentAuthority Taxable Subordinate Tax
Increment Revenue Bonds, Series 1999, for the Purpose of Making Certain Capital
Improvements in the Downtown Area ofFort Collins and Appropriating Revenues in the Tax
Increment Fund.
The City of Fort Collins created the Downtown Development Authority to make desired
improvements in the downtown area. Through tax increment financing, the DDA has made
significant contributions to the redevelopment and improvement ofthe downtown area. These two
Ordinances provide funding fom unreserved fund balance in the DDA Debt Service Fund to make
additional improvements in the downtown area. The first Ordinance issues short term bonds for the
projects which will be paid from the tax increment revenue The second Ordinance appropriates the
proceeds in to the Capital Projects Fund for the various projects.
The projects include the Northern Hotel ($331, 000), 185 North College ($105, 600), 107-115 South
College ($84, 000), City Drug ($67,000), 328Remington ($50,000),345East Mountain ($40,000),
251 Linden ($20,000), and 231 South Howes Street ($18,500). The total of the eight projects is
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October 5, 1999
$716, 000. All of these projects have been reviewed and recommended by the Board of Directors of
the DDA.
Two other projects have been reviewed and recommended by the DDA Board. They include the
Armstrong Hotel ($240, 000) and the 401 West Mountain Trolley Station ($170, 800). There is not
sufficient tax increment in 1999 to cover the cost of these two projects. These projects are planned
to be funded from a future borrowing.
The Transportation Services Area has also requested that the DDA participate financially in the
Repair and Maintenance of the Remington Parking Structure.
BACKGROUND
For background, staff has provided the summaryfor each project that was reviewed and approved
by the Board of Directors of the DDA.
1. Northern Hotel
EXECUTIVE SUMMARY
The Downtown Development Authority is excited to have the opportunity to participate in the
redevelopment of the Northern Hotel. As a long-standing icon in Fort Collins, the Northern Hotel
offers a glimpse of a bygone era as well as a great opportunity to revive a building, which is highly
visible to anyone visiting the city.
The DDA has committed $331, 000 to this renovation project, with City Council approval. The
project will generate enough tax increment to support this participation through the combination
of housing and commercial retail scheduled as part of the project. The DDA will be acquiring an
easement on the faVade as the public benefit.
BACKGROUND INFORMATION
The Northern Hotel, once the gem of Northern Colorado, has seen many different faces throughout
the years. In addition to its many faces, the Northern has endured its share of problems. Most
recently, afire in the '70's placed this historic structure in a 'condemned'state, banning use on the
upper floors. This project will rehabilitate these floors, enabling them to be used for the first time
in almost 25 years.
Over time, the Northern has seen many attempts at renovation. However, due to the nature of the
buildings historic fabric and current condition, renovation was both difficult and expensive. Staff
believes the timing of this proposal to bring this structure back to life is opportune.
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October S, 1999
Conformance with DDA and Community Goals Obiectives rules and regulations
The redevelopment of the Northern Hotel helps to fulfill many significant long-range planning and
development goals of Fort Collins, specifically downtown.
City Plan
From City Plan, Policy DD-1.2, After-HourActivities: Uses that expand the range ofactivities such
as entertainment facilities and residential uses will be encouraged.
The Northern Hotel project offers additional housing in the downtown.
From City Plan, PrincipleD-4: Historically and architecturally signifcantbuildings inDowntown
will be preserved and enhanced.
The Northern Hotel project is both historically and architecturally significant.
Land Use Code
The redevelopment of the Northern Hotel conforms to Article 3, Division 3.4, Subdivisions 3.4.7 of
the Fort Collins Land Use Code requiring that a local historic structure and/or a structure that is
eligible for listing on the National Register of Historic Places provide a development plan and
building design for the preservation and adaptive use of the historic resource.
The Northern Hotel project conforms to the above -mentioned regulation.
Downtown Plan
From the Downtown Plan, Policy 9—Historic Resources: Preserve and enhance the historic and
architectural values of Downtown... Preserve the historic character of Downtown... Respect and be
sensitive to the historic and architectural character of Downtown... Encourage the redevelopment
and adaptive reuse ofhistorically significant and architecturally important structures... Promote the
designation of eligible structures and districts as local, state and national landmarks.
Redevelopment of the Northern Hotel clearly meets all of these goals.
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October 5, 1999
FINANCING
The DDA is one ofmany financial elements in this project. As stated in the Executive Summary, the
DDA committed $331, 000. Tax increment financing is the selected method to retire the debt.
Although the calculations for housing and commercial tax increment are different, the tax increment
from the property will support the DDA commitment. Additionally, any excess property tax
increment would go to the City, via the DDA.
2. 185 North College Avenue
EXECUTIVE SUMMARY
The redevelopment of the property at the southwest corner of the intersection of LaPorte and
College Avenues brings to one of the most important gateways in downtown an attractive two-story
brick structure, which will house a restaurant, retail and office space. This corner lot was once a
gas station and an auto repair shop. The project being built fulfills all the objectives spelled out in
the three pages of the Downtown Plan devoted to the site as well as City Plan standards for infill
and mixed use developments.
BACKGROUND INFORMATION
The southwest corner of LaPorte and College was targeted by the Downtown Plan which devotes
three pages to the site. The Plan states "The site is located on one of the most important blocks in
the retail district of the Downtown area... the City has the opportunity to have a positive influence
on the future of the entire block through the appropriate disposition of the LaPorte property. "
The Downtown Plan was written in the late 1980's long before the redevelopment of Blocks 31 and
32 to the west. The intersection's importance has only increased in the intervening decade. The
project being built on the site is a two-story office, retail and restaurant structure that directly and
intentionally picks upon many of the historic architectural themes of downtown Fort Collins. The
design is clearly in line with City Plan in scope, massing, materials, spacing of architectural
elements, and pedestrian orientation. Although a few on -site parking spaces will be provided, the
project intends to take advantage of the new parking structure being built directly to the west.
The Downtown Development Authority considered participation in this project in June 1999 and
agreed to acquire an easement on the fagade, assuming it was built as design illustrations indicated,
for $105, 600. The easement is for a 20 year period and requires all maintenance to be conducted
and paid for by the property owner.
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October 5, 1999
The Authority's agreement to participate was predicated on the following:
The importance ofthe intersection and the long-standing need to have a quality improvementplaced
on the site:
• The creative andsensitive design ofthe structure towardthe historic downtown environment
and to pedestrians. The DDA noted the function the site has in connecting Old Town Fort
Collins and the new civic center facilities to the west of the property;
• The conformance of the design to every criteria of the Downtown Plan and to City Plan;
• The actual cost to build the faVade estimated at $158,500;
• The owner's willingness to bid and manage the construction of General Improvement
District improvements which are occurring simultaneously with the development of the
building itself.
• The opportunity to leverage a high -quality project directly across the street from the
proposed renovation of the Northern Hotel which effectively redevelops 50 percent of the
entire intersection.
FINANCING
The new structure at 185 North College Avenue will have a value of between $990, 000 and $1.2
million according to estimates provided by the Larimer County Assessor's office. Using the more
conservative number, this will generate property taxes of $27, 500 (based upon current mill levies)
which, after subtracting current tax liability of $1,917 leaves an incremental value of $25,600.
Through mid 2006, the project should pay about $140, 000 in tax increment and if the annual level
of $25, 600 is not reached (regardless of the reason) the owner of the property is obligated to make
up any shortfall. The City, through the DDA, would retain any excess.
The DDA's $105, 600 easement acquisition constitutes between 8.8 and 10.6 percent of the project's
completed value which is consistent with the level ofAuthorityparticipation in almost every project
it has ever been involved with (the major exception being Old Town Square).
Because this project is being included with a series of other DDA projects, the issuance and
borrowing costs for this (and all) the projects is considerably less than what they would be as stand-
alone projects.
Cost estimate:
The following numbers were provided by the owner of the project:
Earthwork
25,000
Foundation
12,500
Structural Steel
22,000
Framing
50,000
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October 5, 1999
Insulation
5,000
Stucco
20,000
Doors
7,000
Windows
31,000
Hardware
4,500
Drywall
18,000
Painting
1,500
Awnings
11,000
Signage
7,000
Light Fixtures
2,500
Flood Doors
2, 000
General Conditions
10,000
Contractor profit/overhead
22,000
Total: $251, 000
From these figures, the DDA subtracted earthwork, foundation, insulation, drywall, general
conditions, and contractor profit and overhead (total of $92,500). In some cases the improvement
cost should legitimately be borne by the whole project (e.g. earthwork, foundation, general
conditions, profit and overhead) while in others, the "benefit" was clearly to the interior of the
building (drywall, and insulation). Nevertheless, the resulting $158, 500 hard cost ofimprovements
exceeds the cost of the easement acquisition by better than 50 percent.
3. "Robert Trimble Block" Building (107-115 South College Avenue)
EXECUTIVE SUMMARY
The building known as theRobert Trimble Block Building is one which carries a tremendous amount
of history for Fort Collins, as well as currently housing the Catacombs Restaurant. This historic
building, located next to City Drug is located just off the main corner of the busiest intersection in
downtown Fort Collins. The developer of the project is The Kaplan Company. The total private
investment of the renovation is estimated at $666,948, of which, $107,537 will restore the fagade
of the building. Tax increment revenue from this project will exceed $100,000, while the DDA has
committed $84,000.
BACKGROUND INFORMATION
The Robert Trimble Block has contained a variety of commercial enterprises for nearly a century,
from ca. 1900 to the present. It is named for its original owner, Robert E. Trimble, a prominent Fort
Collins businessman and son of early Fort Collins merchant and stockman William H. Trimble. Its
first occupant was Tyler -Lowe Mercantile Company,fromca. 1902-1910. The historic building also
was the home to The Boston Store, the Vance Shoe Store and Pate Stores Co., Collins Cash Clothing
Company, Pggly Wiggly, Hibbs Clothing Co., a dry goods store as well as a jeweler. In 1960 this
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October 5, 1999
location was then replaced by retail chain store, Ben Franklin, which operated for a decade. Team
Electronics, The Catacombs, Bays Pets and Things, and Walrus Ice Cream have also been located
in this building. In August 1998 the building came under the ownership oflmage Enterprises, Inc.
This building renovation is consistent with many of the City and DDA's goals, as outlined in the
following document references:
Ci1y Plan:
PrincipleD-4: Historically and architecturally significant buildings in Downtown will bepreserved
and enhanced.
Downtown Plan:
Policy 9—Historic Resources: Preserve and enhance the historic and architectural values of
Downtown... Preserve the historic character ofDowntown ... Respectandbe sensitive to the historic
and architectural character of Downtown... Encourage the redevelopment and adaptive reuse of
historically significant and architecturally important structures.
Redevelopment of the Robert Trimble Block clearly meets all of these elements.
FINANCING
The redevelopment ofthe Robert Trimble Block will cost approximately $666,948. This incremental
increase to the property value ofthe building will generate over $100, 000 in the next 5 % years. The
DDA has committed $84, 000 to this project. As with all DDA projects, if the tax increment fails to
reach the specified levels, the owners will be contractually obligated to makeup any shortfalls. This
guarantees that the debt incurred to acquire the facade easement will be covered. Any excess
increment flows to the City through the DDA.
Attachments to this memorandum include elevations of the building, site plan, facade cost estimate
and the easement and maintenance agreements.
4. City Drug Building (101-103 South College Avenue)
EXECUTIVE SUMMARY
The City Drug Building has long been a cornerstone of downtown Fort Collins. This historic
building is currently undergoing an extensive remodel of the facade and the second floor. The
developer of the project is The Kaplan Company. The total private investment of the renovation is
estimated at $559,280.75. The DDA commitment of$67, 000 is contingent on City Council approval
as well as work being completed as presented. As proposed, this finished project would generate
over $70,000 in tax increment money, which would be used to retire the debt.
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October 5, 1999
BACKGROUND INFORMATION
The City Drug Building is comprised of two adjoining buildings, which were separate entities until
ca. 1937. The southernmostportion ofthe building, occupyingLot 15, was constructed before 1886.
The building (105 South College Ave) was divided longitudinally. In 1886, it was occupied by a
tailor and a tobacco shop. By 1891, the tobacco shop was gone and in its place was an insurance
office, and by late 1895 a millenary shop had replaced the insurance office. This building then was
the home to a grocery and hardware shop, bookstore, pharmacy, bank, and finally in 1968 City
Drug rested in this location.
The building and renovation, located at the 100% (busiest) intersection of downtown, offer many
of the elements outlined in the Downtown Plan drafted in 1989.
Downtown Plan:
Policy 9—Historic Resources: Preserve and enhance the historic and architectural value of
Downtown... Protect historically significant and architectural important structures, sites and
districts.
City Plan:
Policy DD-1.1, Land Use: Basic Land use activities will be clustered... to promote the movement
of pedestrians... while preserving the historical buildings and character of the area...
The CityDrugproject certainly accomplishes the above -mentioned elements oftheDowntown Plan.
The Downtown Development Authority considered participation in this project in May 1999 and
agreed to acquire an easement on the faVade, assuming it was built as design illustrations indicated,
for $67, 000. The easement requires all maintenance to be conducted and paid for by the property
owner.
The Authority's agreement to participate was predicated on the following:
• The importance of this structure to downtown Fort Collins;
• The actual cost of renovation on the faVade estimated at $73, 672.94;
• The owner's willingness to comply with all City rules and regulations regarding the
renovation, including food proofing this building.
FINANCING
This project will have an improved value estimated at $559,000 in taxable improvements. The tax
increment generated from this project will supply more money than the debt. In the unlikely event
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October 5, 1999
the property value does not support the annual increment, the contract requires the property owner
to pay this amount. Any excess in this amount flows to the City through the DDA.
Because this project is being included with a series of other DDA projects, the issuance and
borrowing costs for this (and all) the projects are considerably less than what they would be as
stand alone projects.
5. 328 Remington (Old Baptist Church)
EXECUTIVE SUMMARY
The 'Old' Baptist Church located at 328 Remington is in the final planning stages of a change of
use and renovation of the existing structure. Currently used as a dwelling unit in approximately
10% of the usable space, this beautiful structure is slated as a film and dance school in the near
future.
Currentlyplanned is a $350, 000 improvement to the property, and the DDA has committed $50, 000
to this project, pending City Council approval. Tax increment for the project is estimated at
approximately $10, 000 annually, which would be used to fund the DDA portion of the project.
Earlier in the planning process, the DDA requested the annexation of this property into the DDA
boundary. This request was supported and passed by City Council in September 1998.
BACKGROUND INFORMATION
Originally constructed in 1897, this historic church structure will receive a facelift, internally and
externally. A f lm and dance school is the anticipated user of the facility, offering a new dimension
to the already culturally rich Fort Collins, and downtown. While this project will offer many things
to our community, additional jobs and educational services are at the top of the list. This project
offers many different elements of adaptive reuse of a historic structure.
Conformance with DDA and Community Goals. Objectives rules and regulations
The redevelopment of the Baptist Church accomplishes many of the significant goals of our
community through the following document references:
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October 5, 1999
City Plan
From City Plan, Principle D-4: Historically and architecturally significant buildings in Downtown
will be preserved and enhanced.
Land Use Code
The redevelopment of the Baptist Church conforms to Article 3, Division 3.4, Subdivisions 3.4.7 of
the Fort Collins Land Use Code requiring that a local historic structure and/or a structure that is
eligible for listing on the National Register of Historic Place provide a development plan and
building design for the preservation and adaptive use of the historic resource.
Downtown Plan
From the Downtown Plan, Policy 9—Historic Resources: Preserve and enhance the historic and
architectural values of Downtown... Preserve the historic character of Downtown... Respect and be
sensitive to the historic and architectural character of Downtown... Encourage the redevelopment
and adaptive reuse ofhistorically significant and architecturally important structures... Promote the
designation of eligible structures and districts as local, state and national landmarks.
FINANCING
The DDA has committed $50, 000 in reimbursable funds toward this redevelopment project. The tax
increment from theproperty will be used to retire the debt ofthis commitment. The total anticipated
investment exceeds $350, 000 in taxable improvements. This private investment will provide ample
funds for repayment of the debt.
As with all DDA projects, excess revenue flows to the City through the DDA.
6. 345 East Mountain Avenue
EXECUTIVE SUMMARY
The project located at 345 East Mountain Avenue, also known as the old Salvation Army building,
has undergone an entire renovation. The building owner, LPJLimited Partnership Association, is
the developer. As Mountain Avenue begins to extend east past Walnut Street, this renovated
property has become a tremendous addition to the block. Total private investment for the project
is over $375, 000, and the DDA has committed $40, 000. Tax increment revenue for the project is
estimated to be approximately $15,680 per year beginning in 2000. This increment will total
approximately $94, 000 between 2000 and 2006 when the current DDA expires, and these revenues
would be used to fund the project.
BACKGROUND INFORMATION
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October 5, 1999
The structure located at 345 East Mountain Avenue was built in 1901 as a private residence. The
only remaining evidence ofthis residence uncovered to date is an interior brick wall of the current
building.
This residence was apparently converted to a business ca. 1958. According to Building Department
Records, in January 1969 the owner remodeled, and many businesses have been located at the site.
Past tenants include Michaud Electric, Milar Electric, Salvation Army, along with the current
tenant, Balloffet and Associates. This last change triggered a shift from retail to office use for the
building.
FINANCING
According to the Larimer County Assessor, this property is estimated to increase in value $558, 000
based on renovation and higher rental income generated by the new tenants. The taxable
improvement will provide approximately $15, 680/year, which will be used to retire the debt for this
project. As with all DDA projects, the excess funds from this property will flow to the City through
the DDA.
7. 251 Linden Street
EXECUTIVE SUMMARY
The Downtown Development Authority is scheduled to participate in the historic renovation of the
building known as 251 Linden Street. The DDA has committed a total of $20,000 to the project,
which is estimating a total renovation cost of $296, 600. This building is one of the few structures
on Linden Street which has not been remodeled. The anticipated tax increment from this project will
be used to retire the debt.
BACKGROUND INFORMATION
This property is one of downtown's last un-restored and neglected historic properties with the
building in critical need ofcare and restoration. Abandoned in 1974 after the last tenant, Summers
Auto, moved to a new location, the property began a consistent aesthetic and structural decline.
The property was built in 1883 and is listed in the Local and National Register Historic District.
A photo from early 1900's shows "Plattner Implement Company" occupying the storefront with
retail farm implements. The first entry appearing in the Fort Collins City Directory shows "P.P.
Tubbs — Hay, Feed and Coal" as occupants in 1902.
The restoration of the interior and exterior will be performed in compliance with the Secretary of
the Interior's Standards for Archaeology and Historic Preservation. Existing interior Victorian
fabric will be saved and restored. The twin staircase will be restored and the skylight reopened.
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October 5, 1999
This property has great significance to the community in many ways. It also accomplishes many of
the goals outlined as follows:
City Plan
Principle D-4: Historically and architecturally significant buildings in Downtown will be preserved
and enhanced.
Downtown Plan
Policy 9—Historic Resources : Preserve and enhance the historic and architectural values of
Downtown... Preserve the historic character ofDowntown ... Respect and be sensitive to the historic
and architectural character of Downtown... Encourage the redevelopment and adaptive reuse of
historically significant and architecturally important structures.
FINANCING
The repayment ofthe debt created for this project will be issued through the tax increment generated
in the restoration process. It is projected that the property will produce approximately $8,317/year
in tax increment. Extending this amount over the anticipated 4.5 years, the total of $37,430 in
collected in tax increment revenue.
As will all DDA projects, excess revenue flows to the City of Fort Collins, through the DDA.
8. 231 South Howes
EXECUTIVE SUMMARY
The property located at 231 South Howes is scheduled for renovation from a two-story residence
to offices. The existing structure is a designated historic landmark, which means any faFade work
must be with the approval of the Landmark Preservation Commission (LPQ.
A total of $250,000 in taxable improvements is estimated for the property. The project would be
funded through tax increment financing, and include improvements to the right-of-way. The DDA
commitment to this project is $18,500.
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October 5, 1999
BACKGROUND INFORMATION
The current owner purchased the residence of the late Adelia Davis, located at 231 South Howes
This building is located across from the Federal Post Office at the intersection of Olive and Howes.
The main building was constructed in 1903 and remodeled in 1942 into a duplex. There has been
little done to the house since that time. The project will include all new plumbing, heating and air
conditioning and electrical work, as well as the reinstallation of the original staircase, which was
removed to create the upper apartment.
As part of the historical fabric of downtown Fort Collins, this renovation adds commercial space
as well as a residential unit to the downtown. Complete with the re -location ofa fifty -year -old prize
winning rose garden relocation, and the addition ofa carriage house, this project is a fine example
of retaining the turn of the century flavor of this house, while providing an attractive mix of
residential and commercial use.
FINANCING
This project will be financed through tax -increment funding in the amount of $18,500, with City
Council approval. This debt will be self -supported by the private investment of approximately
$250, 000 to the project. As with all DDA projects, any excess tax increment revenue goes to the City
of Fort Collins through the DDA.
Future Projects
1. Armstrong Hotel
EXECUTIVE SUMMARY
Contingent upon approval by City Council, the Downtown Development Authority has agreed to
acquire a fagade easement on the Armstrong Hotel (aka Empire Hotel) following the building's
historic rehabilitation into a 58-room hotel and restaurant. The developer oftheproject is a team
composed of Everitt Enterprises and Sitzman-Mitchell. The $240, 000 DDA commitment is also
contingent upon a $6,000,000 renovation cost which should generate $2.3 million in taxable
improvements, and an annual tax increment of $64, 000.
BACKGROUND INFORMATION
The Armstrong Hotel was built in 1923 in response to the growing automobile tourism business.
It once housed the original Fort Collins chapter of the American Automobile Association. The
building is a locally designated historic landmark and it is eligible, and has been nominated for
National historic designation. It has been submitted to the Landmark Preservation Commission for
design review and approval.
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October 5, 1999
The redevelopment of the Armstrong Hotel complies strongly and directly with the tenets of City
Plan and the Fort Collins Downtown Plan.
City Plan
Policy DD-1.1, Land Use: Basic land use activities will be clustered... to promote the movement of
pedestrians... while preserving the historical buildings and character of the area
The Armstrong Hotel is a local designated historic structure and is in the process of obtaining
formal national designation.
PolicyDD-1.Z After-HourActivities: Uses that expand the range ofactivities such as entertainment
... , restaurants, hotel/convention facilities and residential uses will be encouraged
The Armstrong Hotel will return a full -service hotel to the central business district and will include
a new, locally owned and operated restaurant and bar.
Policy DD-1. 7, Hotels: A high quality hotel(s) with space for large gatherings, conventions, etc., is
encouraged in the Old City Center sub -district.
The Armstrong Hotel will have a variety of meeting rooms, the largest of which will seat more than
100 people.
Principle D-4: Historically and architecturally significant buildings in Downtown will be preserved
and enhanced.
The historic Armstrong Hotel will be preserved and enhanced.
Policy DD-5.4 Parking. Shared parking allowances will be encouraged for nearby uses...
The Armstrong Hotel has a limited amount of on -site parking which is located at the rear of the
building (which conforms to City Plan Policy DD-5.5 requiring lots to be located behind buildings,
inside yards, or in the interior of blocks). The balance of the parking will be provided through the
use of shared facilities. These arrangements are currently being negotiated with the owners of
close -by surface parking lots.
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October 5, 1999
Land Use Code
The redevelopment ofthe Armstrong Hotel conforms to Article 3, Division 3.4, Subdivision 3.4.7 of
the Fort Collins Land Use Code requiring that a local historic structure and/or a structure that is
eligible for listing on the National Register of Historic Places provide a development plan and
building design for the preservation and adaptive use of the historic resource.
Downtown Plan
Downtown Plan, Policy 9—Historic Resources: Preserve and enhance the historic and architectural
values of Downtown... Preserve the historic character of Downtown... Respect and be sensitive to
the historic and architectural character ofDowntown ... Encouragethe redevelopment and adaptive
reuse ofhistorically significant and architecturally important structures... Promote the designation
of eligible structures and districts as local, state and national landmarks.
Redevelopment ofthe Armstrong Hotel clearly meets all ofthe elements ofPolicy 9 ofthe Downtown
Plan.
Downtown Plan, Policy 15—Economic Development: Build the Downtown as the economic heart
of the community and region... Foster the development of newjobs in the Downtown... Support the
retention and expansion of existing businesses... Enhance the Downtown's dominance in finance,
government, professional services, culture and entertainment.
Redevelopment ofthe Armstrong Hotel helps tofuytll these economic development objectives. Most
specifically, it will complement the meager visitor housing options in the central business district
and enhance the attraction of outside dollars into this community.
Downtown Plan, Policy 15, Page 110: Utilizepublic incentives for the location ofa quality hotel(s)
nowhere else in the community but downtown.
The Downtown Plan also includes a specific recommendation in Chapter 5 (p. 116) which states:
"Establish a program to recruit major anchors to the Downtown area ... A number of potential
anchors have been identified... Quality hotel(s) ... eating and drinking establishments ... conference
centers."
The redevelopment of the Armstrong Hotel will help to fulfill this recommendation.
Plano Development
The original planning document, Fort Collins Downtown Development Authority Plan of
Development, adopted as a part of the creation process for the DDA in 1981 includes specific
references to historic preservation. Three listed goals and objectives (G, H, J, and R, pg. 6 and 7)
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October 5, 1999
all encourage support of restoration and rehabilitation with the intent of preventing physical
deterioration and expanding the mix of uses offered in the central business district.
Finally, the Plan of Development includes a hotel and convention center as a project the DDA
should pursue. While the proposed redevelopment of the Armstrong Hotel will result primarily in
a boutique style hotel, it clearly moves in the direction of this long time DDA project objective.
For every citation above, because every public planning and policy document strongly encourages,
endorses, this kind of project, the Downtown Development Authority agreed to participate in the
rehabilitation of the Armstrong Hotel. The project fulfills a critical gap in the downtown
commercial fabric, it restores a simple but large historic Fort Collins landmark, it will creatively
take advantage of existing parking opportunities and because the use is unchanged, automobile
demand should not increase. Indeed, adding more hotel rooms to the downtown inventory provides
visitors with a more convenient, one -stop sleeping, entertainment, and eating environment.
DDA participation is retroactive --the project must be completed before the favade easement is
acquired. This insures the flow of tax increment monies to fund the Authority's involvement.
FINANCING
The rehabilitated Armstrong Hotel will cost about $6,000,000. However, the owners, with the
assistance of the Larimer County Assessor's office, have been extremely conservative in their
estimation of added "incremental" value, which they have placed at $2,300,000. This should
generate $64,000 annually in property tax increment (using current mill levies) and will generate
$288, 000 over a 4.5 year period (assuming taxes on the added value do not begin flowing before
2002). This is sufficient to cover the easement acquisition cost of $240, 000. Since this project is
a part of a number of DDA projects, borrowing and bond issuance costs will be reduced
significantly. As with all DDA projects, should the tax increment fail to reach the specified levels,
the owners will be contractually obligated to makeup any shortfalls. This guarantees that the debt
incurred to acquire the faVade easement will be covered. Any excess increment flows to the City
through the DDA.
2. 401 West Mountain (Trolley Station)
EXECUTIVE SUMMARY
The DDA has committed $170,800 toward the redevelopment of the property known as 401 West
Mountain. This project will be a mixed -use building with a total build -out cost estimated at
$1,782,800. Of this total, $1,496,000 is hard net costs, with the balance made up in off -site
improvements andprojectfees. Tax incrementfinancingisthefundingmechanism selected byDDA
to fund this redevelopment. The project will generate approximately $40, 000 in annual property
tax. Tax increment onthepropertywillproduce$36,000/annually,thusanyexcessincrementwould
flow to the City of Fort Collins through the DDA.
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October 5, 1999
The DDA's participation in this project is through the funding of the public right-of-way.
BACKGROUND INFORMATION
This location, situated across from the Edward's House Bed andBreakfast, and cross -cornered from
the Avery House, is a formergas station. Prior to its immediate past use, the site served as a Trolley
Station. The property has existed as a run down, non -operative gas station for the past several
years.
In viewing this project with the DDA's mission in mind, this is a textbook downtown project. It will
result in some low -intensity neighborhood retail, an increase in the availability of professional
services downtown, and it includes market -rate urban housing. The design is contemporary but not
intrusive. It is the kind ofproject that incorporates the diversity and functionality, which makes Fort
Collins unique.
This project continues many of the goals of the DDA as well as the community, as referenced by:
Downtown Plan, Policy 15 Economic Development: Build the Downtown as the economic heart
of the community and region... Foster the development ofnew jobs in the Downtown... Support the
retention and expansion of existing businesses... Enhance the Downtown's dominance in finance,
government, professional services, culture and entertainment.
FINANCING
This property calls for an investment of $1,782,800, with taxable improvements in the amount of
$1,496, 000. The debt incurred by the DDA will be retired through tax increment financing, with
City Council approval. As with all DDA projects, any excess funds from the project flow to the City
through the DDA.
SUMMARY
The DDA Board has met to review each of these projects. For the reasons in the summaries, the
Board has recommended each project for funding through a transfer ofthe tax increment. In 1999,
the DDA tax increment is sufficient to cover the cost of the first eight projects. Staff will be
developing a financial proposal for the other projects at the beginning of 2000. Staff recommends
adoption of the ordinances. "
Kelly Ohlson, 2040 Bennington Circle, expressed concerns regarding the DDA project, opposed the
use of public monies for projects with unclear public benefit, and urged more Council scrutiny of
DDA activities.
City Manager Fischbach spoke in general regarding DDA projects.
61III]
October S, 1999
Jay Hardy, Downtown Development Authority Executive Director, spoke regarding the process and
criteria followed for DDA facade renovation projects and tax increment financing.
Lucia Liley, 110 East Oak Street, attorney representing the Downtown Development Authority,
spoke regarding the statutory duties of the DDA and provisions regarding the spending of tax
increment or other public monies for public improvements or acquisition of property or a limited
interest in property for downtown renovation purposes. She spoke regarding the review and approval
process for facade projects done for renovation purposes.
Councilmember Mason asked ifthe DDA publishes any itemized reports of expenditures forprojects
that could be reviewed by the public or the Council. Hardy stated that the DDA is a quasi -
governmental entity and its detailed project files are open to public inspection. City Manager
Fischbach stated that the DDA is also audited by the City's auditor.
Councilmember Weitkunat asked for clarification that the DDA is accountable to the City and that
checks and balances are in place. City Manager Fischbach stated that DDA finances must be
approved by the City Council.
Councilmember Byrne spoke regarding the oversight responsibilities of the Council and the need for
comprehensive strategic overview. He suggested the preparation of a strategic business plan for the
DDA for presentation to the Council.
Councilmember Bertschy spoke in support of the facade renovation program and suggested that
appropriations for large sums of money not be placed on the Consent Calendar. He supported the
suggestion for a business plan for the DDA.
Councilmember Bertschy made a motion, seconded by Councilmember Weitkunat, to adopt
Ordinance No. 150, 1999 on First Reading.
Councilmember Mason supported the preparation of a business plan for the DDA and facade
renovation for public benefit using public monies. He spoke regarding the professional audit done
for the DDA. He supported placing large appropriations on the discussion agenda rather than on the
Consent Calendar.
Councilmember Kastein noted that there is a Council liaison to the DDA. He requested information
regarding the proper uses of DDA monies.
The vote on the motion was as follows: Yeas: Councilmembers Bertschy, Byrne, Kastein, Martinez,
Mason, and Weitkunat. Nays: None.
THE MOTION CARRIED
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October 5, 1999
Councilmember Bertschy made a motion, seconded by Councilmember Weitkunat, to adopt
Ordinance No. 151, 1999 on First Reading.
Kelly Ohlson, 2040 Bennington Circle, spoke regarding facade renovations and stated that the issue
is whether or not the public benefit is equal to the expenditure of dollars.
Councilmember Bertschy spoke regarding the public outcome of facade projects and competitive bid
processes.
Councilmember Mason asked if there is a balance sheet available to itemize expenditures for such
projects. Alan Krcmarik, Finance Director, spoke regarding auditing procedures for DDA projects.
City Manager Fischbach spoke regarding staff diligence in ensuring accountability for the
expenditure of public dollars.
Councilmember Mason spoke regarding the need for Council to ask the questions taxpayers expect.
The vote on the motion was as follows: Yeas: Councilmembers Bertschy, Byrne, Kastein, Martinez,
Mason, and Weitkunat. Nays: None.
THE MOTION CARRIED
Other Business
Mayor Martinez spoke regarding the resignation of Carl Cooper from the Liquor Licensing Authority
in response to the limited sanctions imposed by the LLA for a liquor licensing violation. He
expressed concern regarding the light sanctions that were imposed in this case and suggested looking
at options for dealing with liquor licensing violations.
Councilmember Bertschy supported looking at options for dealing with liquor licensing violations.
Councilmember Kastein also supported looking at options in this area.
Councilmember Byme suggested that the Council Health and Safety Committee could review the
performance of the Liquor Licensing Authority.
Mayor Martinez stated that he would talk with Mr. Cooper to ask him to reconsider his resignation.
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October 5, 1999
Councilmember Weitkunat spoke regarding the need to provide direction to boards and commissions
and the responsibility of the Council to review the boards to determine how all of them fit within the
policy and direction of the community. She commented on the seriousness of the LLA situation.
Councilmember Mason requested a one -page summary of this particular situation.
Councilmember Kastein asked about the status of a memo summarizing the meeting held with the
development community. City Manager Fischbach stated that the memo will be included in the next
Council packet.
Mayor Martinez spoke regarding the Beattie Elementary School pedestrian safety issues. City
Manager Fischbach spoke regarding the shortage of crossing guards.
Adjournment
The meeting adjourned at 10:35 p.m. %'
Mayor
ATTEST:
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City Clerk - G�
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