HomeMy WebLinkAboutMINUTES-09/15/2009-RegularSeptember 15, 2009
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, September 15,
2009, 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: Hutchinson, Kottwitz, Manvel, Ohlson, Poppaw, Roy,
and Troxell.
Staff Members Present: Atteberry, Krajicek, Eckman.
Citizen Participation
Pam Shaddock, Regional Director for Senator Mark Udall, stated the Senator would like to involve
Council in discussions related to federal matters. Staff or Council should contact her to provide
information to Senator Udall. She asked for a work session with Council to discuss federal issues
that impact Fort Collins.
Mike Devereaux, 2150 Maid Marian Court, thanked Council and City staff for developing an
ordinance that will allow wheelchairs in bike lanes.
Sue Radford, 2732 Wakonda, stated Platte River Power Authority General Manager Brian Moeck
should not have written a letter to Representative Markey, urging her to vote against the Waxman -
Markey Climate Bill. The opinion expressed by Mr. Moeck in the letter did not represent the views
of Fort Collins.
Chris Guillan, Fort Collins Board of Realtors, thanked Council for working with the Board on issues
such as exterior property maintenance standards, rental housing standards and the unrecorded
dwelling units process.
Clint Skutchan, 719 Great Plains Court, Fort Collins Board of Realtors, thanked Council and the City
for proclaiming the evening as "Realtor Education Night at the Council." He thanked the City and
Council for providing ways. the Board could provide input on several issues.
Cheryl Distaso, 135 South Sunset, stated Council will consider an ordinance allowing wheelchairs
in bike lanes on October 6. She asked if this item could be considered as the first discussion item
to allow those who must use Dial -A -Ride to attend.
Doug Ernest, 1625 West Elizabeth, urged Council not to eliminate an historic preservation planner
position because Fort Collins needs to continue its efforts to preserve historic landmarks.
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September 15, 2009
Kevin Cross, 300 Peterson, Fort Collins Sustainability Group, stated the Group is concerned about
the letter Brian Moeck, Platte River Power Authority General Manager, sent to Representative
Markey. Mr. Moeck did not express the viewpoint of Fort Collins and he was not authorized to write
such a letter.
Stacy Lynne, 216 Park Street, stated the City has ignored scientific evidence that shows climate
change is not on a path to imminent destruction. The City's overall agenda is to control citizens and
receive millions of dollars from the government at the expense of the citizens' rights and freedoms.
Citizen Participation Follow-up
Mayor Hutchinson stated Council has raised issues concerning the letter written by Mr. Moeck. He
spoke with Mr. Moeck about the concerns of Council and Mr. Moeck has sent a letter to
Representative Markey, stating he did not speak for the elected officials of the communities served
by Platte River. Council will conduct a work session to discuss the governance model of Platte
River on December 8.
Councilmember Manvel asked that the Platte River Board also discuss the issue of Platte River
taking a stance on legislative matters without guidance from the four member cities.
Councilmember Roy asked fora determination if Mr. Moeck has the authority to write the types of
letters that have been discussed. City Manager Atteberry stated the City Attorney's Office will
review the Platte River contracts.
Mayor Hutchinson noted the work session on December 8 will address the Platte River governance
model.
Councilmember Roy asked for the issue of wheelchairs in the bike lanes can be discussed first at the
October 6 meeting.
Agenda Review
City Manager Atteberry stated Item #7 Second Reading of Ordinance No. 087, 2009, Appropriating
Prior Years Reserves in the Downtown Development Authority Fund for Expenditure on Projects
in Accordance with the Downtown Plan of Development, has been revised to limit the period of time
the warehouse can be used, free of charge, by non-profit arts/cultural performance groups and
scientific non -profits to five years. Deputy City Attorney Eckman read the changes to Ordinance No.
087, 2009 into the record.
City Manager Atteberry stated Item #17 Second Reading of Ordinance No. 088, 2009, Adopting
Updated Rules and Regulations Governing Grandview and Roselawn Cemeteries to Allow Green
Burials at Roselawn and to Make Minor Language Improvements has a revision to the exhibit to the
ordinance.
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CONSENT CALENDAR
6. Consideration and Approval of the Minutes of the August 18, 2009 Regular Meeting_
7. Second Reading of Ordinance No. 087, 2009, Appropriating Prior Years Reserves in the
Downtown Development Authority Fund for Expenditure on Projects in Accordance with
the Downtown Plan of Development.
This Ordinance, unanimously adopted on First Reading on September 1, 2009, appropriates
unanticipated revenue from interest earnings in the amount of $332,044, from project savings
in the amount of $1,555,249-1 and from the transfer of funds from projects not currently ready
for reimbursement to projects or programs that are ready in the amount of $1,614,085. The
Downtown Development Authority (DDA) Board has authorized the expenditure on the
various projects and programs.
8. Second Reading of Ordinance No. 089, 2009, Designating the Paramount Cottage Camp,
1544 West Oak Street, as a Fort Collins Landmark Pursuant to Chapter 14 of the City Code.
Ordinance No. 089, 2009, unanimously adopted on First Reading on September 1, 2009,
designates the Paramount Cottage Camp, 1544 West Oak Street, as a Fort Collins Landmark.
The owners of the property, Maureen Plotnicki and Stephen Weber, are initiating this
request. 1
9. Second Reading of Ordinance No. 090, 2009, Authorizing the Transfer of Existing
Appropriations Between Capital Projects for the North College Improvements Project.
This Ordinance, unanimously adopted on First.Reading on September 1, 2009, authorizes
the use of the remaining Truck Route funds for the North College Project in order to further
extend the needed improvements along North College, from Vine Drive north to the
Hickory/Conifer Intersection, and to meet the intended construction schedule of 2011, as
desired by the North Fort Collins Business Association (NFCBA) and local business/property
owners.
10. First Reading of Ordinance No. 091, 2009, Appropriating Unanticipated Grant Revenue in
the Cultural Services Fund to Be Used for Moving the Archive and Artifact Collections to
the New Museum Facilitv.
On December 2, 2008, the Fort Collins Museum received written notice that it had been
awarded a $5,711 Preservation Assistance Grant from the National Endowment for the
Humanities. This grant enables the Museum to hire consultants to assist in the development
of a preliminary collections move plan, highlighting the current artifacts and archives in the
collection and strategies for the relocation to the new facility. This is a one-year grant and
will be completed in November 2009.
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September 15, 2009
On July 10, 2009, the Museum received written notice that it had been awarded a $149,672
Museum for America Grant from the Institute of Museums and Library Services. This grant
enables the Museum to establish a Collection Move Team, prepare artifacts, and move
archival materials and artifacts to the new museum facility. The $149,672 will be disbursed
on a reimbursement basis over a two-year period.
The Museum is requesting that Council appropriate the $155,383 into the Museum's
Collections grant project for use during the grant cycle of August 2009 through August 2011.
It. First Reading of Ordinance No. 092, 2009 Amending Chapter 23 of the City Code to
Authorize the City Manager to Grant Certain Permits and Licenses to Enter on Real Property.
The existing language in the City Code specifies that any disposition of real property,
including temporary use and revocable permits, must be approved by City Council. This
proposed amendment will authorize the City Manager to grant certain permits or licenses to
enter on City property.
12. First Reading of Ordinance No. 093, 2009, Vacating a Portion of Right-of-way for Redwood
Street as Dedicated at Reception #2006-0034597 of the Larimer County Records.
The right-of-way at Reception #2006-0034597 was dedicated in 2006 by the developer of
Old Town North, in order to complete the construction of Redwood Street, from the
development to Vine Drive. Additional land was needed to provide a second point of access
into the development. The parcel dedicated was originally a small tract in the Evergreen
Park Subdivision that the developer of Old Town North was able to obtain and dedicate to
the City in order to construct Redwood Street. Some of the parcel that was dedicated is not
needed for street purposes and the developer of Old Town North Sunterrace Townhomes has
requested the vacation of a portion of the right-of-way to accommodate the setbacks needed
for the proposed townhomes.
***END CONSENT***
Ordinances on Second Reading were read by title by City Clerk Krajicek.
7. Second Reading of Ordinance No. 087, 2009, Appropriating Prior Years Reserves in the
Downtown Development Authority Fund for Expenditure on Projects in Accordance with
the Downtown Plan of Development.
8. Second Reading of Ordinance No. 089, 2009, Designating the Paramount Cottage Camp,
1544 West Oak Street, as a Fort Collins Landmark Pursuant to Chapter 14 of the City Code.
9. Second Reading of Ordinance No. 090, 2009, Authorizing the Transfer of Existing
Appropriations Between Capital Projects for the North College Improvements Project.
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17. Second Reading of Ordinance No. 088, 2009, Adopting Updated Rules and Regulations
Governing Grandview and Roselawn Cemeteries to Allow Green Burials at Roselawn and
to Make Minor Language Improvements.
Ordinances on First Reading were read by title by City Clerk Krajicek.
10. First Reading of Ordinance No. 091, 2009, Appropriating Unanticipated Grant Revenue in
the Cultural Services Fund to Be Used for Moving the Archive and Artifact Collections to
the New Museum Facility.
11. First Reading of Ordinance No. 092, 2009 Amending Chapter 23 of the City Code to
Authorize the City Manager to Grant Certain Permits and Licenses to Enter on Real Property.
12. First Reading of Ordinance No. 093, 2009, Vacating a Portion of Right-of-way for Redwood
Street as Dedicated at Reception 92006-0034597 of the Larimer County Records.
Councilmember Manvell made a motion, seconded by Councilmember Roy to adopt and approve
all items on the Consent Calendar, including the revision to Item 97.
Councilmember Ohlson asked if the DDA could choose to shorten the time it offers rent-free
services at the warehouse it is purchasing. Deputy City Attorney Eckman stated the DDA is not
required to offer free services for five years but can choose to shorten the time it offers those
services.
Councilmember Troxell asked if the purchase price of the Elks Building by the DDA included the
deconstruction costs of the building. Matt Robenalt, Downtown Development Authority Executive
Director, stated the original purchase price of $2.8 million did not include the cost of environmental
abatement and deconstruction. The DDA did receive estimates to deconstruct the building at the
time of purchase, but no funds have been appropriated to do the deconstruction.
The vote on the motion was as follows: Yeas: Hutchinson, Kottwitz, Manvel, Ohlson, Poppaw, Roy
and Troxell. Nays: none.
THE MOTION CARRIED.
Consent Calendar Follow-up
Councilmember Manvel asked for a revision to Ordinance No. 092, 2009 Amending Chapter 23 of
the City Code to Authorize the City Manager to Grant Certain Permits and Licenses to Enter on
Real Property prior to Second Reading to state that Council must be notified when such permission
is to be granted.
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Councilmember Reports
Councilmember Troxell stated he attended a CSU-City Liaison Committee meeting that discussed
the ASCSU "good neighbor" program. Ram Ride, a program that offers students over 100,000 safe
rides home rides each year, is run by students, is funded by students and has a positive impact on the
community. Two roundtable discussions with ASCSU are scheduled to discuss issues between the
students and the community.
Councilmember Poppaw stated she attended a Fort Collins Housing Authority Board retreat. She
also attended a Beet Street Finance Committee meeting and she noted Beet Street is moving forward
with its new leader.
Councilmember Manvel met with the Poudre Heritage Alliance that has worked for many years to
have the Poudre River designated as a National Heritage Area.
Public Hearing on the 2010-2011 Recommended Biennial Budget
for the City of Fort Collins, Hearing was Held
The following is staff s memorandum for this item.
"EXECUTIVE SUMMARY
This is the first official public hearing on the City Manager's 2010-2011 Recommended Biennial
Budget for the City of Fort Collins. The purpose of this public hearing is to gather public input on
the 2010-2011 budget.
In an effort to receive further public input, a second public hearing is scheduled for the October 6,
2009 Council meeting. Public input will also be taken during the budget adoption meetings on
Tuesday, October 20 and Tuesday, November 3, 2009 at 6:00 p.m. in the Council Chambers.
The City Manager's 2010-2011 Recommended Budget can be reviewed at the Main Library, the
Harmony Branch Library, Council Tree Library, or the City Clerk's Office. The recommended
budget can also be viewed on the internet at www.fcgov.com/budget. "
City Manager Atteberry stated the budget allocates funds to the General Fund, Utilities funds, other
Enterprise funds, defines reserve balances and makes assumptions about future revenues. The
General Fund budget is approximately $100 million and the total budget is $507.6 million for 2010,
with minimal changes for 2011. Council will consider an ordinance next year to change the two-year
budget schedule. He noted the funding for Dial -A -Ride service for_those grandfathered into the
City's area of service had inadvertently been cut from the 2010 budget. Staff will correct that
oversight and make cuts elsewhere so the Dial -A -Ride service will continue.
One major community priority is to maintain funding levels for police and fire services. Keeping
funding for police and fire at current levels makes up about 50% of the General Fund budget and
staff recommends keeping funding at the current levels for police and fire. The General Fund has
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been reduced 7.5%, with $50 million designated for police and fire. Current funding is also
maintained for environmental health and economic health programs. The recommendation is to
continue funding programs to continue to improve traffic flow and traffic congestion.
The budget is a very conservative budget with no assumptions of growth. Reductions have been
taken and many offers are reduced or eliminated. The budget assumes conditions will not worsen
in the local economy, with only marginal increases in economic activity for 2010 and 2011. The
pavement management program has been significantly reduced as it relates to neighborhood, non -
arterial roadways. Support for recreation and parks is being reduced. The budget does not include
merit employee pay increases and staffing levels have been reduced, in addition to the staffing
reductions that occurred in 2006 and 2007.
Electric rates will increase 9.5%, water rates will increase approximately 3% and wastewater rates
will increase 10%. The average impact per household is estimated at $10 per month. No increases
are recommended for the stormwater fund. The utility rates cannot be used to fund police, fire, or
other General Fund services. The rate increases are intended to cover pass -through rate increases
from Platte River Power Authority, the new Mulberry Wastewater Plant, and to increase the reserve
balances.
The budget does not address significant community needs, such as $5 million for Police Services,
that are needed to sustain a safe community. Poudre Fire Authority needs $2 million to $3 million
to maintain fire services. Pavement Management needs $6 million to be fully funded. The budget
does not fund any expansion of transit and only maintains the status quo. Parks maintenance is also
underfunded to keep the parks at a level consistent with the community expectations.
Eric Sutherland, 631 LaPorte, stated a portion of the electric and water revenues are designated as
General Fund revenues in the form of payments in lieu of taxes (PILOTS). The City is
undercollecting PILOTS for the electric utility as compared to other Front Range cities. Article XII,
Section 6 of the City Charter states the utilities cannot spend funds out of their revenue funds for
anything beside the historic mission of providing electrical energy services to the ratepayers of Fort
Collins, unless approved by Council. Purchase of renewable energy credits does not meet this
requirement of the Charter.
Steve Yurash, 2920 Waterstone, stated the 9.5% rate increase for the Light and Power budget is too
large and will adversely affect household and commercial customers. The increase includes a 1.8%
increase each of the next two years for energy services to meet the Energy Policy goals, which are
very aggressive goals. The automatic metering infrastructure program (AM[) will help reduce carbon
footprint but should be deferred to a later date because the program requires a large portion of the
proposed rate increase.
Lloyd Walker, 1756 Concord Drive, requested additional resources for code enforcement for
neighborhood livability. Code enforcement in neighborhoods will help maintain public order and
safety.
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Stacy Lynne, 216 Park Street, asked for the source of Art in Public Places funds and for the cost of
the Fort Collins Bike Library and the Fort Collins Bike Coop. She asked how the decrease of
$200,000 in affordable housing funds will affect people in Fort Collins. She asked for a summary
of the positions that have been cut. Mayor Hutchinson stated the Art in Public Places program is
funded from 1%of cost of major projects. Councilmember Manvel stated the Bike Library is funded
by federal grants. City Manager Atteberry stated responses to questions about the budget are
provided on the City's website.
Doug Ernest, 1625 West Elizabeth, urged Council not to eliminate an historic preservation planner
position because Fort Collins needs to continue its efforts to preserve historic landmarks.
Sondra Carson, 511 South Whitcomb, requested the position of historic preservation planner be
restored in the 2010-2011 budget to continue the efforts to save many historic buildings in Fort
Collins.
Shane Miller, 4325 Mill Creek, thanked the City Manager and Council for the reinstatement of the
funding for Dial -A -Ride. He asked if City employees have been asked for ways to make cuts that
would preserve jobs. He asked if pavement management could be considered as a bonding issue to
pay for the program.
Nancy York, 130 South Whitcomb, stated her concerns with the electric utility increase. She
supported increased energy audits for homes to help lower rates. The AMI program should not be
initiated at this time because of increased rates. The landscaping budget for the downtown area
should be reduced. The pavement management program should not be reduced.
Cheryl Distaso; 135 South Sunset, stated much confusion was caused by the omission of funding for
Dial -A -Ride in the budget.
Councilmember Ohlson stated the funding for Dial -A -Ride night service was not recommended in
the budget, but the omission was inadvertent. City Manager Atteberry stated the budget is a $507
million budget and over 250 people worked to put the budget together. The funding will be provided
for night service and those riders who were grandfathered in during the 2007 budget process.
Mayor Hutchinson noted creating the budget is a complex process that requires hundreds rof staff
hours to compile. The budget is not finalized until Council votes to adopt it. Council has been clear
that the Dial -A -Ride funding will be included in the budget.
City Manager Atteberry stated he would bring $155,000 in budget reductions to Council to offset
the Dial -A -Ride funding.
Councilmember Poppaw asked for the percentage of utility rate increases that will be used to meet
City policies, such as the Energy Policy, and the percentage of rate increases that will cover the pass -
through costs from Platte River to meet state requirements. City Manager Atteberry stated 2% of
the 9.5% rate increase will be used for the AMI project. A smaller percentage is dedicated to
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environmental -related services and programs in the electric utility. The major part of the rate
increase is for Platte River pass -through costs because its costs have risen.
Councilmember Roy asked how the answers to the public's questions will be provided. City
Manager Attebeiry stated the answers will be posted on the City's website. Staff will also respond
to individual questions.
Councilmember Manvel asked if employees have been encouraged to submit cost savings
suggestions to preserve jobs. City Manager Atteberry stated employees have had the opportunity to
provide comments throughout the budget process. The Budgeting for Outcomes process has many
employees engaged in the process of developing the budget in making offers and as part of a Results
Team.
Ordinance No. 088, 2009,
Adopting Updated Rules and Regulations Governing Grandview and Roselawn
Cemeteries to Allow Green Burials at Roselawn and
to Make Minor Language Improvements, Adopted on Second Reading
The following is staff s memorandum for this item.
"EXECUTIVE SUMMARY
This Ordinance, unanimously adopted on First Reading on September 1, 2009, changes the
Cemetery Rules and Regulations to allow green burials at Roselawn Cemetery. Unlike Grandview
Cemetery, Roselawn has land that can be dedicated to green burials. The other changes to the Rules
and Regulations are simple housekeeping measures. The last major update was completed in May
2005.)9
J. R. Schnelzer, Director of Parks, stated the green burial area will be at Roselawn Cemetery. The
Ordinance modifies the Cemetery Rules and Regulations to allow green burials.
Stacy Lynne, 216 Park Street, asked for the number of people who have asked for green burials and
who brought this issue to the City for consideration. She asked why Grandview Cemetery is not
considered for green burials and she requested information about any costs to Fort Collins residents,
the risks to the environment, and the reasoning for allowing the City Manager to set the rates, fees
and charges, instead of Council.
Schnelzer stated a Green Burial is a movement that is developing nationwide. A green burial has
a positive impact on the environment because no embalming is involved and renewable resources
are used on the surface. The plots at Grandview are not large enough to accommodate the larger
opening required by green burials. Roselawn is a newer cemetery and has an area that will better suit
green burials. There is no direct cost to the City other than some rehabilitation work to be done on
the one -acre area at Roselawn to add prairie grasses and wildflowers. Phil Carpenter, Cemetery
Supervisor, stated some area funeral directors that have been certified by the Green Burial Council
have requested the service and residents have also requested the service.
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Deputy City Attorney Eckman noted the Charter prohibits the City from placing a burden upon or
limiting the use of private property unless done by Council. An internment right is considered to be
a private property right so the City Manager cannot set the fees for internment. He read changes
made to the Rules and Regulations between First and Second Reading.
Councilmember Kottwitz asked why a section of the Cemetery has to be set aside for green burials.
Schnelzer stated a larger hole must be dug for a green burial without a casket or vault. There will
be more settling on the top of the grave, which will require a higher maintenance fee. The area will
be a natural setting, not groomed, and will not contain above -ground headstones. That type of setting
will not 6t with the look of Grandview Cemetery, which is already plotted with smaller plot sizes
and has a groomed, maintained appearance with above -ground headstones. Having one area at
Roselawn dedicated for green burials will be easier to maintain.
Councilmember Kottwitz asked if not embalming bodies for green burials will create any issues.
Carpenter stated a body does not have to be embalmed. The only requirement for embalming is
when a body is to be placed in the mausoleum.
Councilmember Ohlson asked why monument dealers will no longer be required to be bonded.
Schnelzer stated a grave monument is owned by the family and the City does not have any
relationship with the monument company other than to work with the company in delivery and
setting the stone.
Councilmember Ohlson asked why granite is the chosen material for the grave markers because
granite is an extracted material and the process harms the environment. Concrete would be a better
material to use for the environment. Schnelzer stated the intent was to use a material that will be
long-lasting. Granite is a natural occurring material used by the industry and markings added to
granite are well-preserved.
Councilmember Roy made a motion, seconded by Councilmember Poppaw, to adopt Ordinance No.
088, 2009 on Second Reading, as amended. Yeas: Hutchinson, Kottwitz, Manvel, Ohlson, Poppaw,
Roy and Troxell. Nays: none.
THE MOTION CARRIED.
("Secretary's note: The Council took a brief recess at this point in the meeting.)
Items Relating to the Adoption of the 2009 Update
to the Mountain Vista Subarea Plan, Adopted
The following is staff's memorandum for this item.
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"FINANCIAL IMPACT
No direct financial impacts exist as a result of adopting the 2009 update to the Mountain Vila
Subarea Plan (2009 Plan). However, the Plan identifies short and long-term public infrastructure
improvements and potential funding sources for this subarea.
EXECUTIVE SUMMARY
A. Resolution 2009-086 Adopting the 2009 Update of the Mountain Vista Subarea Plan.
Several related items are being proposed, concurrent with consideration for adoption of the 2009
Plan, including.
B. Resolution 2009-087 Amending the City Structure Plan Map to Comport with the 2009
Update of the Mountain Vista Subarea Plan.
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C. Resolution 2009-088 Amending the North College Corridor Plan to Comport with the 2009
Update of the Mountain Vista Subarea Plan.
D. Resolution 2009-089 Amending the Northside Neighborhoods Plan to Comport with the
2009 Update of the Mountain Vista Subarea Plan.
E. Resolution 2009-090 Amending the City's Master Street Plan to Comport with the 2009
Update of the Mountain Vista Subarea Plan.
The Mountain Vista Subarea Plan, an element of City Plan, is projected to accommodate a
significant portion of the City's future growth with approximately ],.i00 acres of vacant land. The
Mountain Vista Subarea Plan, originally adopted on March 16, 1999, laid a frameworkfor a large,
primarily undeveloped area of northeast Fort Collins. Over the past ten years, staff has responded
to numerous requests for changes to this plan.
The Plan update process, started in March 2008, addresses identified issues based on new
information. The Plan update refines the adopted vision, framework plan map, policies, and
implementation actions identified to achieve the Plan in the future. This update is also responsive
to the ideas and concerns of the many stakeholders, including area property owners, residents,
boards and commissions, City Council and the broader community.
A follow-up action to consider an ordinance to amend the City of Fort Collins Zoning map is
scheduled for November 3, 2009.
BACKGROUND
A. Resolution 2009-086 Adopting the 2009 Update of the Mountain Vista Subarea Plan.
Overview of the proposed 2009 Update to the Mountain Vista Subarea Plan
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The 1999 Mountain Vista Subarea Plan, originally adopted on March 16, 1999, laid the framework
for a large, primarily undeveloped area of northeast Fort Collins. This Plan area is projected to
accommodate a significant portion of the City's future growth, with approximately 1,500 acres of
vacant land. Over the past ten years, staff has responded to numerous requests for changes to this
plan. The Plan update process started in March 2008.
The purpose of the update process was to determine potential refinements to land use, streets,
drainage ways, parks, open lands and trails. The updated 2009 Plan refines the vision, Framework
Plan, and principles and policies in the original document, based on new information. In addition,
this process included a reassessment of the implementation actions identified to achieve the Plan
in the future. This update is also responsive to the ideas and concerns of the many stakeholders,
including area property owners, residents, boards and commissions, City Council and the broader
community.
The 2009 Plan itself is divided into chapters covering the following topics:
Executive Summary
Chapter 1 - Plan Foundations
Chapter 2 - Existing Conditions and Analysis
Chapter 3 - Vision
Chapter 4 - Principles and Policies
Chapter 5 - Framework Plan
Chapter 6 — Implementation Recommendations
Appendix — Summaries and Technical Reports
Presented below is a brief summary of each chapter.
Chapter 1— Plan Foundations
Chapter 1 sets the contextfor the Mountain Vista Subarea Plan. It describes the purpose of the Plan
Update, description of the public input and review process, and a review of related planning
documents.
Chapter 2 — Existing Conditions and Issues
Chapter 2 provides an updated summary of existing conditions within the subarea related to land
use, transportation system, open lands, and utilities. This chapter also identifies factors -that may
influence future development and contains a summary of the latest consultant analysis of the major
issues.
Chapter 3 — Vision
Chapter 3 describes a vision for the Plan area, including neighborhoods, commercial center
employment and industrial uses, transportation system, natural areas, and community appearance.
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Chapter 4 — Principles and Policies
Chapter 4 identifies principles and policies speci/ic to the subarea, while building from the
established community -wide City Plan policies. The Principles categories include land use,
transportation, community appearance and design, economic sustainability and development,
natural areas, and open lands.
Chapter .i — Framework Plan
Chapters l and 5 are intended to organize, guide, and stimulate efforts to implement the vision and
address the identified issuer.
The centerpiece of the Mountain Vista Subarea Plan is the Framework Plan. This Framework Plan
represents an integrated pattern of existing and future land use, transportation system, and network
of open lands. Key building blocks include existing and new residential neighborhoods, schools,
parks, commercial centers, a business center, and a network of open lands. These destinations will
be linked by a transportation system that provides a high level of connectivity, internally and to
other destinations throughout the community, serving vehicular, transit, bicycle and pedestrian
travel.
This chapter is organized into three main sections, including land use, transportation and open
lands. The chapter also includes a comparison of the 1999 and 2009 Framework Plans.
Chapter 6 — Implementation Recommendations
Chapter 6 highlights the key implementation actions needed to achieve the Plan. This chapter
includes a detailed listing of projects and improvements needed to support this subarea's
development, including transportation improvements, parks and trails, natural areas, stormwater
drainage, and public facilities. In addition, this chapter includes an analysis ofselect infrastructure
projects needed to alleviate Adequate Public Facilities (APF) issues.
Public Process
The Plan update process started in March 2008. The public process has included extensive public
involvement from properly owners within the project area, including Anheuser-Busch Inbev,
residents and neighborhood groups, Poudre School District and other service providers, multiple
City departments, City boards and commissions, and direction from City Council.
The project team included stafffrom various City departments, EDAWIAECOM(urbanplanningand
design), Economic and Planning Systems, Inc. (market analysis), LSA Associates, Inc.
(transportation modeling/air quality analysis), and Felsburg Holt & Ullevig (transportation
engineering and noise analysis).
The planning process was divided into three main phases. The primary tasks of the first phase
(March 2008—August 2008) included identifying background information associated with project
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September 15,'2009
start-up. The second phase (August 2008-December 2008) included a focus on design and
alternative analysis. Finally, the third phase (January 2009—August 2009) included selecting a
preferred framework plan and updating the Plan document.
B. Resolution 2009-087 Amending the City Structure Plan Map to Comport with the 2009
Update of the Mountain Vista Subarea Plan.
Based on the 2009 Plan recommendations, amendments to the City Structure Plan map are needed
to change the land use designations within the subarea, including Industrial, Employment,
Community Commercial, Open Lands, Parks and Stream Corridors, Low Density Mired -Use
Neighborhoods, and Medium Density Mixed -Use Neighborhoods. The City Structure Plan will also
reflect changes to the Master Street Plan and the Enhanced Travel Corridor designation.
C. Resolution 2009-088 Amending the North College Corridor Plan to Comport with the
2009 Update of the Mountain Vista Subarea Plan.
The 2009 Plan recommends an amendment to the North College Corridor Plan to change the
location of the Enhanced Travel Corridor from Conifer Street to realigned Vine Drive. The North
Fort Collins Business Association has submitted a letter in support of this change. (Attachment 7)
D. Resolution 2009-089 Amending the Northside Neighborhoods Plan to Comport with the
2009 Update of the Mountain Vista Subarea Plan.
The 2009 Plan recommends an amendment to the Northside Neighborhoods Plan, which overlaps
a small portion of the Mountain Vista Subarea Plan. The amendment will reflect additional Medium
Density Mixed -Use Neighborhoods land use designation near the intersection of realigned Vine
Drive and Lemay Avenue. The updated Land Demand Analysis supported higher -density housing
adjacent to the Enhanced Travel Corridor.
E. Resolution 2009-090 Amending the City's Master Street Plan to Comport with the 2009
Update of the Mountain Vista Subarea Plan.
The 2009 Plan recommends changes to the Master Street Plan including:
1. A refined street network, particularly fewer collector streets;
2. The extension of realigned Vine Drive from Lemay to Timberline;
3. Elimination of the extension of Turnberry Road south of its current terminus at Mountain
Vista Drive; and
4. Several minor alignment changes to streets as shown in the 1999 Mountain Vista Subarea
Plan.
BOARDS AND COMMISSIONS RECOMMENDATIONS
On August 19, 2009, the Transportation Board voted (7-2) to support a recommendation to City
Council to adopt the update to the Mountain Vista Subarea Plan, and related amendments to the
Master Street Plan. The Board also provided additional comments including:
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September 15, 2009
1. Adding specific language in the Plan stating that the realigned Vine ivill not become a de -
facto truck bypass;
2. Clarifying future enforcement and monitoring of through truck traffic in subarea;
3. Maintain high priority.for resolving existing street deficiencies at the existing Lemay/Vine
intersection and future grade separated crossing in this area before implementing realigned
Vine; and
4. The overall reduction in carbon dioxide from the 1999 Plan to the 2009 Plan is minimal, and
further review is needed to monitor environmental impacts.
On August 20, 2009, the Planning and Zoning Board voted (4-1) to support a recommendation to
City Council to adopt the update to the Mountain Vista Subarea Plan, and related amendments to
the City Structure Plan, North College Corridor Plan, Northside Neighborhoods Plan, and rezoning.
The Board also outlined additional comments including:
1. Provide language in Plan to ensure monitoring ofpotential truckthrough traffic in subarea;
and
2. Forwarding a recommendation not supporting the Moore requests as part of this update
process; instead, the density issue should be addressed later as part of the City Plan update
process.
On July 20, 2009, the Air Quality Advisory Board voted unanimously to support a recommendation
to City Council to adopt the update to the Mountain Vista Subarea Plan.
On July 8, 2009, the Land Conservation and Stewardship Board voted unanimously to support a
recommendation to City Council to adopt the update to the Mountain Vista Subarea Plan.
On June 8, 2009, the Bicycle Advisory Committee forwarded a list of thoughts and concerns on the
update to the Mountain Vista Subarea Plan to the Transportation Board.
On May 27, 2009, the Parks and Recreation Board voted (7 — 1) to support a recommendation to
City Council to adopt the update to the Mountain Vista Subarea Plan.
On May 7, 2009, the Affordable Housing Board voted unanimously to support a recommendation
to City Council to adopt the update to the Mountain Vista Subarea Plan. "
Jeff Scheick, Planning, Development and Transportation Director, stated the original Mountain Vista
Plan was adopted in 1999. The Plan covers 3,000 acres with over 1,500 acres available for future
development. The update includes compact land use design and appropriate level of transportation
infrastructure.
Pete Wray, Senior City Planner, stated the purpose of the Plan update process was to respond to
identified issues and to reassess updated land use and transportation analysis and other new
information for potential adjustments to the Plan. Adjustments to the Plan include modest shifts in
land use designations and an updated street network. The update process included extensive public
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outreach. The Framework Map is the primary element of the Plan. The proposed changes to the
Frame,.vork Map are supported by the' latest transportation and land use market analysis and are
based on public input and direction from Council. Land use designations have been adjusted and
the future enhanced travel corridor is relocated to the proposed realigned Vine Drive.
Matt Wempe, Transportation Planner, stated the updated Plan has a reduction in the number of
collector -level streets and an extension of the Vine Drive realignment that will serve as an enhanced
travel corridor. Development is currently limited in the Mountain Vista Subarea due to issues with
adequate public facilities, largely related to the existing Vine and Lemay intersection. Staff has
identified infrastructure projects that can be done, both short term and medium -term, that will delay
the need for grade -separated crossings. The realignment of Vine between College and Lemay would
be the first construction, concurrent with the Northeast College Corridor Outfall project, which will
help address existing system deficiencies at Vine and Lemay and provide additional capacity for the
Mountain Vista Subarea for development. Phase Two would be construction of realigned Vine
Drive between Lemay and Timberline and, either petitioning for at -grade railroad crossings with the
Colorado Public Utilities Commission or constructing three grade -separated crossings.
Funding for the construction projects would be provided by a combination of City capital
improvement funds, development impact fees, and street oversizing impact fees. The Lemay grade -
separated crossing would be included in the rail capital improvements plan within the Transportation
Master Plan, other capital funding requests such as Building on Basics, or grant funding, if it were
able to be secured for the project. The City and developers could also work together to issue bonds
for the infrastructure costs that would be covered by impact development fees to allow a shorter time
period for collection.
Wray stated the City Structure Plan Map will be amended to include adjustments to the land uses,
the open lands designation and the new location for the future enhanced travel corridor. The North
College Corridor Plan will be amended to relocate the enhanced travel corridor from Conifer to the
proposed extension of realigned Vine Drive. The Northside Neighborhoods Plan will be amended
to show additional medium -density mixed -use neighborhoods in the area that overlaps the Mountain
Vista Subarea Plan. The Master Street Plan will be amended to show the overall refined street
network and the extension of realigned Vine Drive.
Wempe stated future implementation actions include developing the I-25/Mountain Vista Drive
Gateway Standards, with input from Anheuser-Busch In -Bev; developing the North
College/Mountain Vista enhanced travel corridor plan; and developing an infrastructure projects
funding plan. The realigned Vine Drive will include design and enforcement options to prevent the
realigned Vine Drive from becoming a de facto truck route.
Shane Miller, 4325 Mill Creek, stated the Plan has the same CO, emission standards as the original
Plan and he asked if CO, emissions will be measured with the change in design of the Plan. He
asked why Tumberry Street will not be extended because extending Turnberry will enhance the
future grid plan for the City's transit system.
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September 15, 2009
Kandace Majoros, 1405 Linden Lake Road, stated her concerns with the realigned Vine becoming
a de facto truck route because it will be an efficient route from 1-25 to US Highway 287. The Plan
needs to contain a stronger statement that the City does not intend for Vine Drive to be a truck route.
There is no formalized review process to measure the effects of the realigned Vine corridor. The
enforcement proposed to keep trucks off of Vine does not seem to be sufficient to deter truckers from
using Vine as a quick route from 1-25 to US Highway 287.
Hunter Harms, Richards Lake area resident, asked why Turnberry Street will not be extended to Vine
Drive. He requested I-25 access from Vine Drive.
John Jacobi, 1305 Linden Lake Road, stated his concerns with the realignment of Vine Drive that
would allow Vine to become a de facto truck route.
Tom Moore, 1230 Country Club Road, K&M Company representative, stated the proposed amounts
of commercial, MMN and employment zoning are too large and the density requirement of not less
than 5 dwelling units per acre for the LMN is not conducive to the quality of housing Fort Collins
needs. He asked Council not to adopt the Plan until the issue of zoning is resolved.
Ron Dean, 1521 Linden Lake Road, stated the Plan should specifically state all the measures put
forward to keep Vine Drive from becoming a de facto truck route. Grade separated crossings should
be built at the same time that Vine Drive is realigned. Conifer Street should not be extended to
Timberline Road.
Cheryl Distaso, 135 Sunset, stated the Alta Vista neighborhood is concerned the realignment of Vine
will increase truck traffic on Vine. The measures proposed by the Transportation Planning
Department will not be successful in discouraging truck traffic on Vine. Turnberry Street should be
extended. Consideration should be given to including low income housing in the Plan.
Vivian Armendariz, 820 Merganser Drive, stated many truck drivers currently use Vine Drive as a
truck route and the realignment of Vine will encourage even more trucks to use Vine Drive.
Councilmember Roy asked why Turnberry Street will not be extended. Wempe stated Turnberry
terminates currently at Mountain Vista Drive. Analysis of the street plan determined extending
Turnberry south to Vine Drive did not mesh well with the proposed land uses and did not fit with
projected traffic volumes. A north -south collector street is proposed to the east of Turnberry that
will carry future traffic to Vine. Country Club Road is proposed to be extended to Giddings to add
additional east -west connectivity. Other local streets will be built as development occurs. The
Transit Strategic Plan focuses on the enhanced travel corridor on the extension of Vine Drive as part
of its future grid system.
Councilmember Ohlson asked if staff had decided not to extend Turnberry based on the negative
public input received. Wempe stated public input received was one component in the decision not
to extend Turnberry, but the transportation modeling and analysis done concluded the proposed street
plan will better serve the area.
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Councilmember Manvel stated Country Club Road west to Long Pond will make a poor travel
corridor and he asked why Country Club Road is proposed to be extended east to Giddings. Wempe
stated Country Club Road is not suited as a through road. Connecting Country Club to Giddings will
remove the bend in the road from Turnberry to Mountain Vista and will provide a better east -west
route choice.
Councilmember Ohlson asked how many people attended the public outreach meeting and expressed
L concern about extending Turnberry south to Vine. Wempe stated over 30 people attended meetings
and did not want Turnberry extended south. About the same number of citizens wanted Turnberry
extended to Vine. Public input was not the only factor in the decision not to extend Turnberry.
Scheick stated the 1999 Plan showed Turnberry connecting to Vine. A transportation grid is needed
to properly serve the area and to support the proposed land uses in the Plan Update. Modeling of
the proposed street plan indicates the Plan does work. A natural area is located next to the location
of the proposed extension of Turnberry and staff did not want to place a collector street close to a
natural area.
Councilmember Ohlson asked what will be done if Vine Drive does become a de facto truck route.
Wempe stated the street design and enforcement options outlined in the Plan will be important to
help prevent Vine from becoming a truck route.
Councilmember Ohlson asked if an I-25/V ine Drive interchange is not proposed. Wempe stated staff
is not aware of any promises made that excludes an interchange at Vine Drive and I-25 in the future.
Kathleen Bracke, Director of Transportation Planning and Special Projects, stated the Vine Drive
interchange at I-25 is still shown on the City's Master Street Plan and would be considered a long-
term improvement option. A new interchange would be extremely expensive.
Councilmember Roy asked how Vine could be designed to discourage truck traffic from using it as
a de facto truck route. Wempe stated designing the street with narrower traveling widths, installing
intersection controls such as signalizing intersections or using roundabouts, designing the street to
use lower speeds with lower posted speed limits, and using an educational campaign to direct truck
drivers to the truck route on US Highway 287 and vehicle weight limit signage are some of the
methods available to staff.
Councilmember Poppaw asked if the Plan included fewer acres devoted to natural areas and open
space. Wray stated the 1999 Plan showed 229 acres for natural areas, ditch corridors, and streams.
The 1999 Plan also showed a future park site adjacent to the private natural areas northwest of Vine
and Timberline and a future school site. Those properties were included in the overall acres
designated for natural areas and existing wetlands. The Plan update shows fewer acres for natural
areas to clarify the separate categories. The update contains a more accurate mapping delineation
for the ditch corridors and the existing wetlands and natural areas. The update has 101 acres for
natural areas. No existing natural area resources will be lost in the update.
Councilmember Manvel asked why a true truck bypass is not constructed. Mark Jackson,
Transportation Group Director, stated a truck route does exist along State Highway 14 to US
Highway 287. Several investigations and analyses have been done since the 1960s to investigate
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ways to move through -truck trips from the current route. As directed by the 1999 truck -route ballot
issue, the City examined the possibility of moving the truck route to the north outside of the City's
GMA. Vine Drive has been examined as a possible truck route, but the cost to turn Vine into a truck
route is prohibitive and it would be deleterious to the neighborhoods located near Vine. No option
has been presented that is an acceptable alternative to the current trick route.
Councilmember Manvel asked why the issue of providing better north -south connectivity was not
addressed. Matt Baker, Street Oversizing Program Manager, stated most of the major traffic routes
in Fort Collins run north -south. Future traffic in the Mountain Vista area is projected to be
predominately east -west. Current travel patterns are more north -south. Extending Vine as a major
arterial to North College Avenue will provide major through -traffic movement without major impact
on other areas.
Mayor Hutchinson asked i f a formal review process to measure the effect of Vine Drive realiagmnent
should be included in the Plan. Wempe stated the Transportation Board recommended including
such a review. Staff will review traffic patterns in the area on a periodic basis. The implementation
action plan can include a specific direction to review,traffic, but the review would not occur until
portions of realigned Vine Drive are constructed. Scheick stated the time to include a review process
is when the realignment of Vine is ready to be designed and decisions must be made about specific
traffic calming devices, design of the street and other tools to discourage truck traffic on Vine.
Councilmember Troxell asked if the Plan contains an explicit statement that Vine Drive will not be
a truck route. Wempe noted the Plan states "the City will consider a variety of street design and
enforcement methods to ensure realigned Vine Drive does not become a truck route, either intended
or unintended."
Councilmember Troxell noted the views of Fort Collins from the Mountain Vista area are sweeping
vistas. Wray stated the original Plan aligned streets toward mountain views to maximize view
corridors with future streets. The update includes an improved connection between Timberline and
Mountain Vista Drive that aligns directly with Longs Peak. The bend in Mountain Vista was
established to allow room for a community park. The update contains language to maximize the
view corridors in the commercial center and other parallel streets.
Councilmember Manvel asked for clarification of the zoning in the area. Wray stated 30 acres will
be zoned for the Community Commercial district. The intent of the zoning is to support the district
with more neighborhood oriented retail mix. Future development will determine the ultimate mix
and design of the district. The 30 acres of Community Commercial zoning is the only area in Fort
Collins that will be developed from the ground up to implement the vision of City Plan. The Moore
family has requested this district be reduced to 20 acres. Staff believes reducing the district to 20
acres will compromise or preclude the full implementation of the City Plan vision and does not
support the request from the Moore family.
Councilmember Manvel asked if Industrial zoning was included in the area. Wray stated the Moore
family has also requested a portion of their property be designated as Employment, which would
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expand the Employment zoning outside of the Anheuser-Busch property. Market analysis supported
the request to expand the Employment zoning.
Councilmember Manvel asked if the proposed land use designations could be changed to
accommodate future uses. Wray stated the land use delineations on the Framework Plan map and
the Structure Plan map are not as specific as the zoning maps. The Land Use Code does contain
provisions to amend zoning.
Mayor Hutchinson asked if the zoning requested for the Moore property should be amended to allow
lower density for housing as requested by the Moore family. Wray stated the Moore family has
requested a reduction in Community Commercial from 30 to 20 acres, the amount of MN/IN from
40 to 15 acres and the amount of Employment to 15 acres for the zoning of their property. Staff has
supported a reduction in amount Community Commercial as designated in the 1999 Plan, but does
not support any further reduction. The Moore family originally requested 70 acres of Employment
designation but only very recently has requested a large reduction to 15 acres. The request to reduce
the amount of Employment was received too late in the Plan process to consider the change. The
request for reduced residential density does not fit with the future vision of the area. A commercial
center is proposed that will serve the greater northeast area and the need exists for higher density
neighborhoods. The multi -family (MMN and LMN) designation called for by City Plan is the
appropriate residential mix to support the future high -frequency transit corridors, the large
employment district and the commercial center.
Councilmember Ohlson noted the land use framework plan is designed to give predictability to
neighbors, residents and developers.
Councilmember Roy asked if the City's formal land use plans have a schedule for regular review.
Joe Frank, Advance Planning Director, stated City Plan is the only planning document that has a
regularly scheduled update every five years. The other plans are updated as needed, depending on
the land use in the Plan area and changes or issues that are occurring.
Councilmember Manvel asked for clarification of the plan for a future Lemay pedestrian underpass
at the connection of Lemay with Vine Drive. Wempe stated the Northside Neighborhoods Plan
recommends a pedestrian underpass at that intersection for the grade separated crossing.
Councilmember Troxell made a motion, seconded by Councilmember Roy, to adopt Resolution
2009-086.
Mayor Hutchinson noted the Plan update includes much public input, board and commission
recommendations and Council work sessions.
The vote on the motion was as follows: Yeas: Hutchinson, Kottwitz, Manvel, Ohlson, Poppaw, Roy
and Troxell. Nays: none.
THE MOTION CARRIED.
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September 15, 2009
Councilmember Troxell made a motion, seconded by Councilmember Roy, to adopt Resolution
2009-087. Yeas: Hutchinson, Kottwitz, Manvel, Ohlson, Poppaw, Roy and Troxell. Nays: none.
THE MOTION CARRIED.
Councilmember Troxell made a motion, seconded by Councilmember Roy, to adopt Resolution
2009-088. Yeas: Hutchinson, Kottwitz, Manvel, Ohlson, Poppaw, Roy and Troxell. Nays: none.
THE MOTION CARRIED.
Councilmember Troxell made a motion, seconded by Councilmember Roy, to adopt Resolution
2009-089. Yeas: Hutchinson, Kottwitz, Manvel, Ohlson, Poppaw, Roy and Troxell. Nays: none.
THE MOTION CARRIED.
Councilmember Troxell made a motion, seconded by Councilmember Roy, to adopt Resolution
2009-090. Yeas: Hutchinson, Kottwitz, Manvel, Ohlson, Poppaw, Roy and Troxell. Nays: none.
Resolution 2009-091
Directing the City Manager to Submit a Request Letter to Platte River
Power Authority Modifying the Composition of Renewable Energy Resources
Acquired for Delivery to the City, Defeated
The following is staff's memorandum for this item.
"FINANCIAL IMPACT
The Utility previously submitted a request letter to Platte River Power Authority ("Platte River')
to purchase 96, 000 megawatt hours ("MWh ') of renewable energy in 2010 and 2011. Platte River's
current forecasted blend for this same period is approximately 58% renewable energy certificates
and 42% delivered renewable energy. The resolution authorizes the submission of a request letter
to Platte River modifying the composition of the renewable energy purchases acquired for delivery
to the City so that it is different from the other member municipalities. Specifically, the request letter
will specify that of the 96, 000 MWh purchased in 2010 and 2011, Platte River should purchase an
additional 30,700 MWh of delivered wind energy. Platte River will in turn attempt to sell the
equivalent of 30,700 MWh of the renewable energy credits (RECs) for delivery to the City. The
additional projected cost is $],100, 000 per year. The blended premium cost for reneivables would
increase from the 2010 rate of $0.019 per kWh to $0.031. The projected cost is contingent on
existing RECs being sold for the contract purchase price of about $7/MWh. The change would
increase electric monthly rates approximately 1.3% for a total projected 2010 rate increase of
10.8%. Any modifications would be incorporated into the electric rates proposed to Council in
October 2009, effective January 1, 2010.
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EXECUTIVE SUMMARY
The Utility previously submitted a request letter to Platte River Power Authority to purchase 96,000
MWh of renewables in 2010 and 2011. I he forecasted blend ofrenewable energy resources for each
ofthe member municipalities is a delivered wind energy component ofapproximately 42%and 58%
composed ofsupplyfrom renewable energy certificates (RECs). The renewable energy purchases
support the City's Electric Energy Policy Goals and the Colorado renewable energy standard.
Replacing existing RECs with 30,700 MWh of delivered wind energy would change the City's
renewable mix to 79% delivered renewable energy (including the associated RECs) and 21 % RECs.
If the request letter submitted to Platte River is consistent with the resolution, the effect will be to
increase the 2010 electric rate from 9.5% as proposed in the City Manager's recommended 2010
budget to 10.8%. This would also increase the renewable energy premium charge for voluntary
customers in the Green Energy Program from the proposed 2010 rate ofS0.019 to $0.031 per kWh.
The City and Platte River became aware of this opportunity very recently and the availability of the
delivered wind energy is time sensitive. Platte River has requested a commitment from the City by
September 21, 2009.
BACKGROUND
Platte River has identified an opportunity to purchase the energy and environmental attributes from
10 megawatts (MW) of wind generation that would amount to approximately 30,700 megawatt -hours
(Al") of energy. Council has indicated to staff at work sessions and in other discussions that its
goal is to eliminate RECs from the City's green energy portfolio. Council has also instructed staff
to honor the existing REC contracts and not to purchase additional RECs. The next REC contract
expires in 2012. The price for this 30, 700 MWh of wind energy is in line with other existing wind
energy contracts held by Platte River. Additionally, an equivalent level of RECs will be sold. The
market value of the existing RECs is unknown, but the goal will be to sell the RECs at or near their
approximate purchase cost of S7/MWh. The price of the energy, coupled with the opportunity to
support Council 's goal of eliminating RECs from the City's portfolio, provides an opportunity that
should be considered.
What is a REC?
A Renewable Energy Certificate, or REC, is a uniquely identified certificate that comes into being
each time a qualified renewable energyfacility generates a megawatt -hour (MWh) ofoutput. A REC
represents the legal right to the environmental benefits associated with the displacement ofone MWh
of undifferentiated energy on the grid (most of which comes from coal and gas in the Rocky
Mountain region) with one MWh of renewable energy. In REC tracking systems, each certificate
is tagged with an identifying number that is used to track ownership throughout its life. Certificates
may remain attached to their MWh of energy, in which case the energy and the certificate are sold
together (bundled) as renewable energy, or they may be detached from the energy and sold
separately. Once the certificate has been detached from the energy with which it originated, that
energy can no longer be sold as renewable energy. It becomes conventional, commodity energy, and
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must be traded as such. The REC can then be separately sold either on its own or in combination
With conventional grid energy as a renewable energy product.
As a strategy, Platte River has chosen to balance its renewable source portfolio by including both
delivered renewable energy and RECs. Platte River's current forecasted blend for 2010 and 2011
is approximately 58% RECs and 42% deliveredrenewable energy. Renewable energysources (such
as a neiv wind plant) provide electricity, blit are more costly, require transmission, impact efficiency
of existing plants and incur additional operational costs associated with backing up the wind. .
Since the adoption ofthe Electric Energy Supply Policy in 2003 and the subsequent update in 2009,
Utilities and Platte River Power Authority staffs have worked together to assure progress on
achieving the renewable energy goals set in the Policy. Platte River has identified an opportunity
to purchase energyfrom an additional 10 Megawatts ofwindgeneration. Platte River haspresented
this opportunity to the City as an option for increasing wind energy supply to the City. The source
of the energy is wind turbines located in the northeast part of Colorado, with transmission and
delivery provided by Xcel Energy. The 10 MW plant is estimated to produce approximately 30,700
MWh of wind energy (including the associated RECs) per year. It is estimated that this energy can
be purchased for 2010 and 2011 at an additional cost of $1.1 million per year.
The current recommended 2010 and 2011 Light and Power Fund budget includes the renewable mix
price of SO. 019 per kWh bringing the Utilities' expense for 96, 000 MWh to $1, 824, 000.
The additional $1.1 million would require 2010 electric rates to increase an additional 1.3%above
the 9.5%proposed in the City Manager's recommended 2010 budget, resulting in a total increase
of 10.8%. The increased cost of the new blend of delivered wind in the renewable portfolio would
also be reflected in the voluntary Green Energy Program, increasing that rate to $0.031 per kWh.
Since this is a voluntary program, it is expected there may be attrition in the Green Energy Program
as a result of the rate increase. "
Steve Catanach, Light and Power Operations Manager, stated the City was presented with an
opportunity three weeks ago from Platte River Power Authority to purchase 10 MWh of additional
wind energy from a new plant being built in far northeast Colorado. The purchase would entail
approximately 30,000 MWh of generation per year. Staff proposes the purchase to be used to replace
renewable energy credits (RECs) in the current portfolio from Platte River with the wind generated
energy. Council has indicated a desire to replace RECs with generated energy. The offer is for a
two-year contract. The purchase will require an additional $1.1 million in expenditure per year to
purchase the energy and would require a 1.3% rate increase. Currently, the City's energy portfolio
is composed of 80% RECs with 20% as generated energy with the associated RECs. In 2010, Platte
River has obtained an additional 12 MWh for the overall portfolio, which changes the City's mix
to 58% RECs and 42% RECs plus generated energy. The purchase will increase the cost of
renewable energy from 1 cent per kilowatt/hour to 1.9 cents per kilowatt/hour. The purchase
provides the opportunity to change the portfolio mix to 21 % RECs and 79% generated renewable
energy, but does create an additional rate increase of 1.3%.
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The purchase will help the City achieve Council's stated goal of moving to 100% generated energy
in the future and remove RECs from the portfolio. The production is local and the cost of the energy
is comparable to the Utility's Silver Sage commitment that comes online in 2010. The purchase does
present a rate increase to the ratepayers and is short-term, with only a two-year contract. The City
does have the option to renew the contract, but the price would be renegotiated at that time. The
timing of the purchase is not optimal because it comes at the same time as a 9.5% utility rate is
proposed for the 2010-2011 budget. The rate increase could also affect the voluntary Green Program
where customers opt to purchase a certain percentage of renewables. The rate for the Green Program
would increase from the current rate of $.01 per kilowatt/hour to $.031 per kilowatt/hour.
Steve Yurash, 2920 Waterstone, Electric Board member, stated the Electric Board adopted a
resolution urging the Council not to approve the proposed purchase because of the short-term nature
of the contract. A longer -term contract would be a better proposal for the Council to consider. The
Board also does not want the City to dispose of its RECs too quickly because pending federal
legislation could make the RECs more valuable. The Electric Board would like to discuss what type
of renewable energy opportunities would be more attractive for the City.
Shane Miller, 4325 Mill Creek, noted the difficulty in providing citizen input on issues when citizens
have many questions to be answered, but no opportunity to provide further input after the answers
are provided. Citizen input into items should be expanded at Council meetings to include another
block of time after the staff presentation and an opportunity for the public to ask questions, to allow
the public more opportunity to voice an opinion or to clarify statements that might have been
misunderstood. He asked if acquiring a two-year contract for wind energy and selling RECs would
result in a net benefit in terms of renewable energy. He expressed concern with the effect of
increased rates on the Green Program.
Eric Sutherland, 631 LaPorte, stated a REC is not energy but is a compliance tool for renewable
portfolio standards. Purchase of RECs is subsidizing distant renewable energy generation sources
and does not help Fort Collins.
Councilmember Poppaw asked how the change from RECs to generated energy moves the City
towards the goals in the Climate Action Plan and the Energy Policy. Brian Janonis, Utilities
Executive Director, stated the proposal before Council is in response to a Council request look at the
financial effect of replacing RECs with delivered energy.
Councilmember Poppaw stated the issue of RECs compared to generated energy needs further
discussion with the Council and the Electric Board. The proposed purchase will cost ratepayers an
additional $1.3 million and does not move the City any closer to its stated goals contained in the
Climate Action Plan and the Energy Policy. City Manager Atteberry stated the proposed contract
was discussed at the Platte River Board meeting and was intended to be helpful to Fort Collins.
Mayor Hutchinson stated the opportunity is time -sensitive and was brought to the Platte River Board
at its meeting three weeks ago. As members of the Board, he and Janonis agreed that Fort Collins
should consider this opportunity to remove some RECs from its portfolio. Council has been adamant
that RECs should be removed. The purchase contract is for two years with an option to renew,
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which is not an unusual arrangement for energy contracts. , The purchase seemed to fit the desires
of Council to purchase more generated renewable energy. 1
Councilmember Roy asked if the other Platte River member communities will see the same rate
increase as a result of this project. Janonis stated the other member cities will not see a rate increase
because they are satisfied with Platte River's policy,on RECs.
Councilmember Roy asked if the other member communities have brought forward any green
initiatives with Platte River that Fort Collins has not agreed to participate in. City Manager
Atteberry stated Platte River does watch how costs are distributed to the four member cities. Fort
Collins has had natural area projects that have required undergrounding lines at a greater cost.
Council has a work session scheduled in December with Brian Moeck, General Manager of Platte
River, and can discuss equity of costs at that time.
Mayor Hutchinson asked who will pay for the energy if the contract is approved. Janonis stated Fort
Collins will pay for the energy and will receive the energy. The other member communities are most
interested in the lowest cost of power, are not under a renewable energy requirement, and do not
have any greenhouse gas reduction goal. There is a conflict in community values between Fort
Collins and the other member communities.
Councilmember Troxell made a motion, seconded by Councilmember Poppaw, to defeat Resolution
2009-091.
Councilmember Roy stated a reduction in the amount of coal that is burned is an essential
component to lessening greenhouse gas emissions. Efforts need to be focused on increasing
conservation, increasing renewables and creating an energy economy.
Councilmember Troxell stated the contract should not be approved by Council. The proposal is in
line with the direction Council has given to invest in renewable energy and not in RECs. The
proposal increases costs, is not a long-term solution and is not in the context of the direction the
Utility is taking. FortZed and the AMI project are investments in Fort Collins' future. The solution
for the future is not to simply replace RECs with generated energy, as this proposal does, but
integrating renewables within the distribution system in different forms.
Councilmember Ohlson stated Platte River and staff have done exactly what Council has asked by
bringing this proposal forward. He asked for public input for specifics that Council could consider
to accomplish the Climate Action Plan and the Energy Policy goals.
Mayor Hutchinson noted the proposal fits the position and policies of Council but shows that a better
definition of goals is needed. The proposal also highlights the challenges of increasing the amount
of generated renewables in the portfolio. He did not support the proposal because of the cost that
would be added to the proposed increases in rates. Renewable energy is costly and further discussion
is necessary to decide the next steps.
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The vote on the motion to defeat the Resolution was as follows: Yeas: Hutchinson, Kottwitz,
Manvel, Ohlson, Poppaw, Roy and Troxell. Nays none.
THE MOTION CARRIED AND THE RESOLUTION WAS DEFEATED.
Suspension of Rules
Councilmember Manvel made a motion, seconded by Councilmember Roy, to suspend the rules and
extend the meeting past 10:30 p.m. Yeas: Hutchinson, Kottwitz, Manvel, Ohlson, Poppaw, Roy and
Troxell. Nays: none.
THE MOTION CARRIED.
Mayor Hutchinson noted Item 921 Resolution 2009-093 Adopting the Airport Business Plan for the
Fort Collins -Loveland Municipal Airport and Item 922 Resolution 2009-084 Appointing Two
Representatives to the Colorado Municipal League Policy Committee will be postponed to October
6, 2009.
("Secretary's note: The Council took a brief recess at this point in the meeting.)
Resolution 2009-092
Approving the Harmony Technology Park Metropolitan District
Nos. I through 3 Consolidated Service Plan, Adopted
The following is staff s memorandum for this item.
"FINANCIAL IMPACT
Title 32 Districts ("Special Districts'), such as the proposed Harmony Technology Park
Metropolitan District Nos. I through 3 (the "Districts'), are independent, quasi -municipal
corporations and political subdivisions of the state. As such, the debt contemplated by the proposed
Districts will have no impact on the financial situation of the City of Fort Collins (the "City').
Furthermore, Colorado State Statute (11-59-101, et seq., C.R.S.) places certain limits on debt and
general obligation bonds of a Special District.
EXECUTIVE SUMMARY
MAV Development Company has submitted a Consolidated Service Plan for Harmony Technology
Park Metropolitan District Nos 1 through 3. The Districts will be used to fund the planning, design,
acquisition, construction, installation, relocation, redevelopment, maintenance, and financing of
public improvements to include water, sanitary sewer, storm water, streets, and parks and trails.
The Districts estimate the total cost of these improvements at S15,562,108 and plan to issue debt in
the total amount of 514, 800, 000 to facilitate construction of the improvements.
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BACKGROUND
Project Description
Harmony Technology Park (the "Project') consists of approximately 122 acres in southwest Fort
Collins. The site was acquired by Harmony Tech Park, LLC (the "Owner) a Colorado limited
liability company, in February 2007. The Owner is managed by MAUDevelopment Company (the
"Developer'), a Michigan corporation.
The Developer's master plan and vision for the Project is to create a first-class business and
technology campus supporting small and large businesses. This will be accomplished through the
construction ofmulti-tenant rental office and office/flex buildings, sale ofindividual sites to business
users for purposes of constructing individual buildings, and construction of commercial retail
buildings to support the Project 's businesses. The Project will offer amenities to all of its users
including pedestrian pathways, outdoor seating/plaza areas, and a regional storm water detention
system with native Colorado landscapingfeatures. The Developer has strict Design Guidelines for
the Project to ensure consistent, high -quality site improvements and architecture, including
standards of site signage, landscaping, site lighting, building design and construction materials.
The Developer's goal is to create a business park unequaled in quality and appeal in Northern
Colorado.
The Project requires significant infrastructure (e.g., roads and utilities) to prepare the site for
business users. Installation of this infrastructure will remove the final barrier to actively marketing
the site as "shovel ready. "
City Metropolitan District Policy
On July 9, 2008, Council adopted a Policy for Reviewing Proposed Service Plans for Title 32
Metropolitan Districts (the "City Policy') setting, forth criteria to be considered when a service plan
is submitted for consideration. As the City Policy states, it is "intended as a guide only... [and shall
not] be construed to limit the discretion of City Council". Therefore, the City Council can at its
discretion approve a service plan that serves a purpose not anticipated by the City Policy.
The Developer has submitted a Consolidated Service Plan for Harmony Technology Park
Metropolitan District Nos 1 through 3 (the "Service Plan'). The City Policy contains several key
criteria for evaluating services plans. These criteria are outlined with a discussion of the proposed
Districts conformance to each:
Provide public improvements resulting in enhanced benefits to existing or future
businesses. The construction of the public improvements identified in the Districts' Service
Plan will provide a high -quality setting for the construction of Office and Office/Flex
buildings to meet business user needs. The parks and trail facilities will provide pedestrian
access within and through the site. In addition, the natural landscaping of the storm water
system will provide an authentic native Colorado experience.
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Primarily commercial use. The Project will be entirely commercial including a mixture of
employment and retail uses.
Enhance the quality of development in the City. The Service Plan does not explicitly call
out design guidelines that require a specific quality of development. However, the
construction of the public improvements including in the Service Plan do allow the project
to move forward. As one of the last remaining large development opportunities along
Harmony Road, accelerating the development of the Project will significantly improve the
quality of the area through enhanced business and commercial activity.
• Max Mill Levy. The City Policy clearly states that the maximum mill levy allowed for a
Special District is forty (40) mills. The Service Plan limits the mill levy to forty (40) mills
with five (5) mills dedicated for on -going maintenance.
Debt and Financial Projections.' The Service Plan includes debt and operating financial
projections that have been prepared by a representative of George K. Baum, a financial firm
listed on the Bond Buyers Marketplace. The analysis also meets the other stipulations ofthe
City Policy.
Multiple -District Structure. The City Policy states that Multiple -District structures maybe
proposed when "the projected absorption of the project and the public improvements to be
financed are reasonably projected to occur over an extended period of time. " The projected
absorption of the Districts will occur over an extended period of time. Therefore, the
proposed Multiple -District structure complies with the City Policy.
Economic Health Case to Approve
The Economic Health team recommends that City Council support the proposed Service Plan. This
recommendation is based upon several arguments:
Support of the community -wide Economic Health Strategy. In 2007, the City identified five
Target Industry Clusters (Chip Design, Software, Bioscience, Clean Energy/ Technology,
and Uniquely Fort Collins). These Target Industry Clusters are intended to provide the
Economic Health Strategy focus. The Advanced Planning Department has recently
undertaken a study of the available land for location and expansion of businesses within
these clusters. The preliminary findings of that report, which will be completed later this
year, indicate that the available property to meet the needs of Bioscience and Clean
Energy/Technology is a precious commodity. The Project is included in the land available
for these two clusters. Therefore, anything that can be done to assist in the development of
Office and Office/Flex space suitable for these businesses will help to promote the overall
Economic Health Strategy of the City.
Elevate the Project to "Shovel Ready" Status. City Council has recently discussed the need
to provide "shovel ready" sites for business users that fat within the City's Target Industry
Clusters. The Project is located along the Harmony Road Corridor, which has been clearly
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identified as a.major employment growth opportunity in the City.. By approving the
proposed Service Plan, City Council ivill be assisting in one of the last remaining projects
achieve "shovel ready " status.
Increase the Project's competitiveness in the region. The Project has struggled to move
forward due in part to economic conditions but more importantly the project has lost several
prospects to competitors in the region. The primary reason for these losses is the lack of
existing infrastructure or the cost to construct the required infrastructure. The proposed
Districts allow the costs ofthe infrastructure to be amortized over a period oftime reducing
the up front impact. This allows, the Developer to market his property as "shovel ready"
and reduce the up front cost thereby making the property more competitive in the larger
region.
Josh Birks, Economic Advisor, stated the Council Finance Committee has heard a presentation on
this item and was generally supportive of the formation of the metropolitan districts. The districts
would be formed for the purpose of collecting taxes to fund design, construction and installation of
public improvements. The metro districts would be formed primarily to fund construction of water,
sewer, stormwater, streets and trails in the district area. The cost of these improvements is estimated
at $15.6 million. The request is to allow the districts to issue debt in the amount of $14.8 million.
The service plan limits the total amount of debt that can be` issued without returning -to Council to
$14.8 million.
The vision for the project is to design a first-class business and technology park that supports both
small and large businesses. The developer has strict guidelines that adhere to the Harmony Corridor
standards. The proposed metro districts comply with the policy adopted by Council in 2008. The
project is entirely commercial in nature, with either retail or employment uses.
Rob Aldrich, President of MAV Development Company, owners of the Harmony Technology Park
site, thanked Council for its consideration of the metro districts. The company has been in existence
for over 20 years and has an office and land development focus. The project vision will be
accomplished by building speculative office and office -flex buildings and selling sites to users for
site -specific development. Design and architectural standards have been established. The potential
build -out is over one million square feet, $150 million in investment and 2,000 jobs. The formation
of the metro districts will accelerate the development of the infrastructure needed for the project
which improves the appearance and marketability of the site and will attract quality employment
users to the site.
Shane Miller, 4325 Mill Creek, asked if the formation of the metro districts is strictly a financing
mechanism where the developer has the power to tax, limited by the mill levy restriction and how
much independence a metro district has, as a quasi -municipal body, from the City Council.
Mayor Hutchinson noted Fort Collins is very careful in the incentives it offers to encourage
development and he asked for a description of the use of a metro district as a tool to help with the
economic health of the city. Birks stated metro districts are a method of public finance, called "land -
secured financing," by leveraging the value of the land that is developed in order to achieve certain
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ends. There is very minimal risk to the City with the formation of metro districts. The risk is taken
by the quasi -municipal district that assumes the debt. Metro districts will enable the project to move
forward and help the City achieve its economic development goals without the City putting funds
directly into the project. Formation of the metro districts will allow the site to become "shovel
ready."
Councilmember Roy asked how a metro district is governed. Birks stated a metro district is a quasi -
municipal district that has taxing ability. The Service Plan limits any additional powers that might
come with the formation of a metro district, such as the power of eminent domain. The mill levy
is capped to limit the amount of taxes the district can collect. Metro districts located in other areas
may have more independence because their service plans do not contain the limits included in this
Service Plan. Mike Freeman, Chief Financial Officer, stated the districts only exist to finance public
infrastructure that are explicitly listed in the development plan associated with the Service Plan.
Council approval is necessary to add any additional public improvement that is not currently listed
in the Service Plan.
Councilmember Roy asked for the value of the taxable area and how that value enables bonding to
occur. Birks stated the current estimate of the cost of improvements is about $15.6 million. The
metro districts will be given the ability to issue debt in the amount of $14.8 million. The developers
will be using their own funds to fully fund the cost of the public improvements. The amount of
bonding is based on the value of the improvements to the property because the value increases over
time as the development is built. The projections of the timeline to build the structures influences
how much debt the metro districts can issue. The property is currently assessed at $10,000 by
Latimer County and zoned as agricultural.
Councilmember Poppaw asked if other financing tools were considered. Freeman stated no other
financing options were considered. Urban renewal tax increment financing is the only other tool that
would be available for the site and, because the project is located on the Harmony Corridor, it does
not qualify as an urban renewal project. The property owner specifically inquired about metro
districts. Other developments along I-25 that have Class -A office space similar to this project, have
used metro districts as the primary tool to finance public infrastructure. Other sites along the I-25
corridor are much farther along and have sites ready for companies to build, which gives those sites
a competitive edge in attracting employers. The Harmony site ranks very high in the site selection
project, but one consistent feedback the City has received is that other sites are much farther along
in terms of being "shovel ready." One project has been developed on the site, with the help of
private activity bonds issued with the City's help. Private activity bonds are a limited financing tool
that benefit individual companies and not the larger development. Use of metro districts as a
financing tool seems to be the best option for this development.
Councilmember Poppaw asked if other types of special districts were available to provide similar
financing and if other communities along the Front Range have chosen not to allow metro districts.
Freeman stated Boulder is the only city in Colorado that does not use metro districts for commercial
development because Boulder is already built out and does not have the raw land available for
development. A metro district is a more appropriate tool for "green field" development. All major
communities along the Front Range allow metro districts. The metro district policy adopted by Fort
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Collins is very specific as to the types of developments that could use this financing tool. The main
criteria of the policy is that the project must be a commercial project, which greatly limits the
number of requests for use of a metro district as a financing tool. The only raw, undeveloped,
strategically located land around Fort Collins that would be available to use metro districts is around
Anheuser-Busch, possibly one or two corners of the Mulberry/I-25 intersection, two corners of the
Prospect/I-25 intersection, the Harmony/I-25 intersection and the site chosen for the Harmony
Technology Park. These sites are strategic employment centers that have been identified in City Plan
and will be consistent with the land use patterns that have been adopted.
Mayor Hutchinson noted the project is 100% commercial and does not contain any residential.
Councilmember Poppaw stated the metro districts will be used as a financing tool and are not an
economic health tool. Metro districts are not an appropriate tool to be used by the City. This is a
great project, but Fort Collins should not be using metro districts as a financing scheme. City
Manager Atteberry stated metro districts can be an important tool in allowing Fort Collins to
compete for development. Metro districts are in use along the Front Range. The City has made a
conscious decision not to use an urban renewal authority along the Harmony Corridor area. Other
communities are willing to use urban renewal authorities to create tax increment financing, which
gives those communities a significant edge in attracting development that is consistent with the
economic vision along the 1-25 corridor. The applicant does quality work and has a vision for the
project that agrees with the City's economic health vision and development standards.
Councilmember Poppaw stated giving a private corporation governmental status is not good
governance on the part of Fort Collins,
Councilmember Ohlson asked why the property was valued at only $10,000. Birks stated he would
contact the Larimer County Assessor's Office to determine why the property received that valuation.
Councilmember Ohlson asked for clarification of the design standards that will be used for the
development. Mr. Aldrich stated when his company acquired the property, it had a declaration that
included design standards that act as an encumbrance on the property. The declaration lists the
criteria required for development in the Park and establishes a design review board to monitor the
adherence to the design standards. The declaration includes requirements and encouragements to
stay within a range of design criteria. Encouragements were used to give flexibility to meet the
requirements of the different companies that will move into the Park.
Councilmember Ohlson asked if a company that decides to move into the Park will have the option
of not following the design guidelines. Freeman stated the design guidelines are not part of the
Service Plan. Mr. Aldrich stated the City has design standards for development and MAV
Development also has standards it imposes over and above the City standards to create a consistency
in terms of design. The design standards are intended to create a sense of cohesiveness among the
various buildings that do not relate to one another and yet allow flexibility in the individual design
of those buildings to meet various companies' needs. The design standards are site improvements,
in terms of lighting, signage, standards regarding fencing, outdoor storage, and certain standards for
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building architecture, including types of materials, color schemes. The design standards encourage
compliance with designs that meet LEED standards.
Councilmember Ohlson requested a discussion concerning City incentives to require green building
standards above and beyond City standards.
Freeman stated the design standards are not included with the Service Plan because they are not
considered public improvements. The intent of the Service Plan is to limit the improvements that
can be financed with public money. The Service Plan follows state statute and provides Council
assurance that the taxes collected can only be used for the specified public improvements. Any
requirement, such as meeting LEED standards, would come under the private side, once the
development took place.
Councilmember Poppaw asked what oversight the Council has, once a metro district is established.
Freeman stated the Service Plan limits the activity of the metro district. The district does not have
the ability to do projects or financing outside of the specific projects listed in the Plan without
Council approval. It is limited in the amount of total taxes that can be collected and the Plan cannot
be changed without Council approval. The developer will appoint a board to oversee the limited
functions of the district. The board is required to report to Council annually on the activities of the
district.
Councilmember Ohlson stated the use of a quasi -municipal district such as a metro district is a tool
that is useful and transparent, when the district is properly designed and used. The use of a metro
district is much better than using an urban renewal authority and declaring agricultural land as
"blighted" when it is obviously not. He asked staff not to include any value statements in the
information provided to Council. The metro district policy adopted by Council was clear that no
residential projects would be approved for metro districts. He asked if the project had any aspect that
does not meet the City's metro policy. Freeman stated when Council discussed the adoption of the
metro district policy, much of the discussion centered around normal infrastructure requirements that
should be funded by the developer versus extraordinary infrastructure requirements that need public
financing. The Metro District Policy does contain language that allows Council, at its discretion,
to approve a service plan that serves a purpose not anticipated by the City Policy. This proposal does
not have extraordinary or unusual infrastructure requirements but the other aspects of the proposal
make the project an excellent candidate for metro districts.
Suspension of Rules
Councilmember Roy made a motion, seconded by Councilmember Poppaw, to suspend the rules and
extend the meeting past 12:00 a.m. Yeas: Hutchinson, Kottwitz, Manvel, Ohlson, Poppaw, Roy and
Troxell. Nays: none.
THE MOTION CARRIED.
Councilmember Ohlson asked if staff has recommended approval of metro districts because of the
company's track record, even though the funding will be used for normal infrastructure requirements.
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Freeman stated staff had many discussions with MAV Development Company to ensure the project
met the objectives of the City's Metro District Policy. There are other mitigating factors in this case
that Council should consider. The site is a very critical employment site and if has been very
difficult for the developer to move ahead with securing funding to build the infrastructure needed
to allow development of the site to occur.
Councilmember Roy asked why MAV Development Company is asking for financial assistance from
the City when it owns 3 million square feet of office space and has over $500 million in assets. Mr.
Aldrich stated MAV Development Company does have significant capital resources available to
develop its projects. The Company does have a large amount of office space under development,
but the Company does not own all that office space. The capital markets are in total disarray and a
void exists that makes ordinary development extraordinarily hard to develop. Formation of a metro
district is one way to fill that void in financing and allow the project to move forward. A year has
passed and no activity has occurred on the site because of lack of financing. Metro districts are a
financing tool to allow MAV Development Company to access capital at a lower rate for a longer
term and will aid in the success of the project and will be a benefit to the community, as well.
Councilmember Troxell made a motion, seconded by Councilmember Ohlson, to adopt Resolution
2009-092. ,
Councilmember Troxell stated the project is a proper use of a metro district as a financing tool: The
project will provide opportunities to Fort Collins and for its targeted, industries and will allow the
site to be made "shovel ready" to be more competitive with the regional market.
Councilmember Roy did not support the resolution because he did not believe different
governmental entities such as a metro district should be created.
Councilmember Poppaw did not support the formation of a metro district because granting a private
corporation governmental status to issue tax-exempt bonds to pay for infrastructure is not a step
Council should take.
Councilmember Manvel stated metro districts are a financing tool that allows the company to tax
itself and forming metro districts will allow the project to move forward. Many safeguards are in
place to ensure the funds are spent on specific public improvements.
Councilmember Kottwitz stated the formation of metro districts is low risk to the City and the
project will greatly benefit the community.
Councilmember Ohlson stated the project is completely commercial and all the buildings in the
project will be required to meet the City's Land Use regulations. This project is a good use of metro
districts as a financing tool.
Mayor Hutchinson stated the Service Plan for the metro district has been tailored to meet the needs
of Fort Collins.
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The vote on the motion was as follows: Yeas: Hutchinson, Kottwitz, Manvel, Ohlson, and Troxell.
Nays: Poppaw, Roy.
THE MOTION CARRIED
Adjournment
Councilmember Ohlson made a motion, seconded by Councilmember Roy, to adjourn the meeting
to 6:00 p.m., Tuesday, September 22, 2009 to consider a possible executive session. Yeas:
Hutchinson, Kottwitz, Manvel, Ohlson, Poppaw, Roy and Troxell. Nays: none.
THE MOTION CARRIED.
The meeting adjourned at 12:20 a.m.
ATTEST:
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