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HomeMy WebLinkAboutMINUTES-01/16/1996-Regular' January 16, 1996 COUNCIL OF THE CITY OF FORT COLLINS, COLORADO �I Council -Manager Form of Government Regular Meeting - 6:30 p.m. A regular meeting of the Council of the City of Fort Collins was held on Tuesday, January 16, 1996, at 6:30 p.m. in the Council Chambers of the City of Fort Collins City Hall. Roll Call was answered by the following Councilmembers: Councilmembers Apt, Azari, Janett, Kneeland, McCluskey, Smith and Wanner. Councilmembers Absent: None. Staff Members Present: Fischbach, Krajicek, Roy. Citizen Participation Al Bacilli, 520 Galaxy Court, spoke of the need for a police station annex on the south side of Fort Collins. He opposed PRPA paying dues to the Chamber of Commerce, expressed concerns regarding affordable housing needs and spoke of the City's hiring practices. Kelly Ohlson, 2040 Bennington Circle, spoke of an unsolicited scientific poll which 56% of the people polled expressed concerns regarding growth. He spoke of concerns regarding the proposed manufacturing use tax and stated the Cost of Services Study needs to be implemented before considering a straight utility fee. Citizen Participation Follow-up Councilmember McCloskey responded to Mr. Bacilli's concerns regarding the branch Police Station in Old Town, noting the majority of complaints received by the Police Department come from that area. Councilmember Janett reported that federal funds have been received for community policing. She responded to Mr. Ohlson's concerns and stated growth and controlling growth is one of Council's main concerns. She stated a Transportation Plan would soon be presented to Council. Councilmember Apt responded to Mr. Bacilli and spoke of the funds that have been, and will continue to be, allocated for affordable housing. He concurred with comments made by Mr. Ohlson, stating he was not pleased with the pace of the cost of services project. He opposed looking at the proposed manufacturing use tax issue, before reviewing the Cost of Services Study. 13 January 16, 1996 Agenda Review I City Manager John Fischbach stated there were no changes to the agenda as published, but noted City Attorney Steve Roy would be outlining proposed changes to Item #15, First Reading of Ordinance No. 2, 1996 Amending Certain Criteria Contained in Section 29-526 of the City Code, Which Criteria Pertain to the Review of Proposed Residential Uses under the Land Development Guidance System. ***CONSENT CALENDAR*** This Calendar is intended to allow the City Council to spend its time and energy on the important items on a lengthy agenda. Staff recommends approval of the Consent Calendar. Anyone may request an item on this calendar to be "pulled" off the Consent Calendar and considered separately. Agenda items pulled from the Consent Calendar by the Public will be considered separately under Agenda Item #12, Public -Pulled Consent Items. _.., _ -- _. —'—: :— 7. Postponement of Items Related to the Amended Zoning and Rezoning of Two Parcels of Land in the Harmony Corridor Known as the Harmony Office Park Partnership and the Keenan/Glass Property Until February 20. 1996. A. Second Reading of Ordinance No. 146, 1995, Amending the Zoning District Map of the City of Fort Collins by the Addition of a P.U.D. Condition and Excluding the Property from the Residential Neighborhood Sign District for That Certain Property Known as Harmony Office Park Partnership Rezoning B. Second Reading of Ordinance No. 147, 1995, Amending the Zoning District Map of the City of Fort Collins by Changing the Zoning Classification for That Certain Property Known as Keenan Rezoning These Ordinances were unanimously adopted on First Reading on November 21, 1995. The applicants have requested that Second Reading consideration be postponed to February 20, 1996. 8. First Reading of Ordinance No 1 1996 Authorizing the Sale to the Resource Assistance Center For Nonprofits Inc of Real Property Known as the Eastside Venture Property The City owns the Property and two other parcels of property located along J.F.K. Parkway which were acquired by the City as the result of nonpayment of SID assessments. Proposals were solicited for the sale of these properties. Two responses were received on the Property. 14 January 16, 1996 The TRAC proposal would use the Property for eleven permanently affordable three- and four -bedroom quality townhomes to relocate eleven families form the Pioneer Mobile Home Park. The Trevena's propose to relocate their skating rink to this Property. A City committee reviewed and ranked the proposals according to the rating criteria of the request for proposal. The TRAC proposal was the highest ranked. Staff is therefore recommending the sale of the Property to TRAC. 9. Resolution 96-4 Amending the Administrative Regulations of the Development Impact Fee Rebate Program for Affordable Housing by Expanding the Range of Rebates for Homeownership Projects. The amendment to the Administrative Guidelines for the City's Development Impact Fee Rebate Program will increase the allowable rebates to $4,200 per unit for homeownership projects which provide housing for families who earn 30% of the Area Median Income (AMI). The financial impact of the amendment will be minimal since there would not likely be many homeownership opportunities developed for families at the 30% AMI level. 10. Resolution 96-5 Approving Expenditures from the Art in Public Places Reserve Account in the Cultural Services and Facilities Fund for the Design Services of an Artist on the English Ranch Park Project. Section 23-303 of the Code, which was added to the Code in 1995, established the Art in Public Places Reserve Account, and designated it for use in acquisition or leasing of works or art, maintenance, repair of display of works of art, and administrative expenses related to the Art in Public Places Program, in accordance with the Art in Public Places Guidelines adopted by the Council in Ordinance No. 20, 1995. In connection with the ongoing design of English Ranch Park, City staff have proposed to use $3,520 to hire an artist to serve on the design team. The artist would assist the design team in incorporating artistic elements and works of art into the design and materials for the park such as landscaping, play ground equipment, walkways, picnic facilities, etc. At its December 14, 1995 meeting, the Art in Public Places Board approved this means for incorporating works of art in the English Ranch Park project, and determined that it meets the Art in Public Places Guidelines. The design phase of the project will be completed in early summer. Construction of the Park will begin sometime in mid summer with completion scheduled for early 1997. 15 January 16, 1996 11. Routine Deeds and Easements. I A. Power line Easement from Judith Megan Jones, 722 West Mountain Avenue, needed to underground existing overhead electric services. Monetary consideration: $10. Items on Second Reading were read by title by City Clerk Wanda Krajicek. Postponement of Items Related to the Amended Zoning and Rezoning of Two Parcels of Land in the Harmony Corridor Known as the Harmony Office Park Partnership and the Keenan/Glass Property Until February 20 1996 A. Second Reading of Ordinance No. 146, 1995, Amending the Zoning District Map of the City of Fort Collins by the Addition of a P.U.D. Condition and Excluding the Property from the Residential Neighborhood Sign District for That Certain Property Known as Harmony Office Park Partnership Rezoning B. Second Reading of Ordinance No. 147, 1995, Amending the Zoning District Map of the City of Fort Collins by Changing the Zoning Classification for That Certain Property Known as Keenan Rezoning Items on First Reading were read by title by City Clerk Wanda Krajicek. 8. First Reading of Ordinance No 1 1996 Authorizing the Sale to the Resource Assistance Center For Nonprofits Inc of Real Property Known as the Eastside Venture Property 15. First Reading of Ordinance No 2 1996 Amending Certain Criteria Contained in Section 29- 526 of the City Code Which Criteria Pertain to the Review of Proposed Residential Uses under the Land Development Guidance System 17. First Reading of Ordinance No 3 1996 Amending Chapter 5 of the City Code to Allow Council to Consider Approval of Rebate Requests from Projects Located Outside the City Limits. Councilmember McCloskey made a motion, seconded by Councilmember Wanner, to adopt and approve all items not removed from the Consent Agenda. Yeas: Councilmembers Apt, Azari, Janett, Kneeland, McCluskey, Smith and Wanner. Nays: None. THE MOTION CARRIED. 16 January 16, 1996 ICOUNCILMEMBER REPORTS Councilmember Apt reported that the Growth Management Committee met and discussed the phasing criteria, which is on the agenda. He noted new street standards have also been discussed at length, stating the Committee is looking at reducing street widths. Mayor Azari thanked staff for its assistance during her recent State of the City Address. Ordinance No. 2, 1996 of the Council of the City of Fort Collins Amending Certain Criteria Contained in Section 29-526 of the City Code, Which Criteria Pertain to the Review of Proposed Residential Uses Under the Land Development Guidance System Adopted Option 3 as Amended on First Reading. The following is staff's memorandum on this item. "Executive Summary The Council Growth Management Committee has directed staff to develop possible changes to the ' phasing criteria previously approved by the Council. The purpose of the changes would be to establish interim phasing criteria to ensure that development approved during the remainder of the City Plan process will be more consistent with recently adopted policies plans and expected City Plan policy outcomes than would likely be realized through the previously approved phasing criteria. These additional interim changes are intended to allow appropriate development to continue while discouraging those aspects of current development patterns that appear inconsistent with both existing Comprehensive Plan elements and emerging City Plan policy directions. The new phasing policy option build on the interim phasing policy revisions recently adopted by Council in December of 1995. 1 The Council Growth Management Committee has expressed concerns that existing residential development regulations and standards do not adequately implement goals contained in recently adopted elements of the Comprehensive Plan. Furthermore, several clear policy directions have emerged from the City Plan process that indicate that the physical form of new development desired by the majority of Fort Collins residents differs in substantial ways from the physical form of development that can now be approved under the City's existing review criteria. Council Growth Management Committee members have expressed a concern that a significant amount of new development may be approved according to these outdated criteria before new standards that better reflect the community's values can be put into place through the City Plan process by the end of 1996 17 January 16, 1996 In addition to these proposed new criteria, staff is also developing new street standards and interim ' standards and guidelines for urban design to be considered separately at a later date. BACKGROUND: In December of 1995, Council extended the City's existing interim residential phasing criteria in order to allow City Plan to complete work on more permanent policies. These phasing criteria had originally been adopted by Council in July of 1994, in order to discourage leap frog development on the city's fringe in favor of in -fill development. There were two primary policy objectives behind the original phasing criteria. The first was to encourage compact, contiguous development to promote more efficient delivery of city utilities and services. Generally, in fill and contiguous development is less costly to serve than leap frog development. The second objective of the phasing criteria was to support air quality goals by reducing the rate of growth in Vehicle Miles Traveled (VMT). Development that is located in close proximaty to shopping centers, parks and employment centers results in shorter and. more efficient vehicle trips than development further, away from community services and facilities. In addition to extending these original phasing criteria, Council made several revisions in December to address two significant problems with the criteria that had been identified by staff. The first problem related to clarifying how LDGS points are to be awarded for donations of off site open space. Lack of clarity had contributed to misunderstandings and problems in application of the criteria. The second problem related to ensuring that a minimum amount of existing LDGS locational "base" criteria be met by new residential development. Two recent development projects had proposed to obtain nearly all required points from "bonus" criteria, an outcome not contemplated when the original policies were adopted and one that is clearly inconsistent with their intent of improving the location of new development relative to community services and facilities. ISSUES NOT ADDRESSED BY RECENT PHASING POLICY REVISIONS: 1. Allowing "base" points for planned, but unbuilt facilities will likely permit additional fringe development to occur during the remainder of the City Plan process without adequate assurances that key planned facilities will ever actually be built. The existing phasing criteria allow some "base"locational points to be earned by projects proposed near locations where community facilities or certain land uses are planned but have not yet been constructed. The rationale for this policy is that residential construction must realistically precede development of shopping centers and other commercial development, and existing city policies require that a substantial portion of park development fees be collected in a given section before parks are developed. W January 16, 1996 The policy of requiring a minimum number of LDGS "base" points for being near key land uses promotes appropriate mixed use planning. Allowing at least some amount of points for planned but unconstructed facilities accommodates the economic realities of land development. Although the policy objective of supporting air quality goals through VMT growth reduction will not be met in the short run period immediately after houses are built but before the other planned facilities developed, in theory these goals will be met once the planned facilities are constructed according to adopted Overall Development Plans (ODP). However, there are currently no guarantees that facilities planned in ODPs will actually be developed. Overall development plans in Fort Collins are often changed to eliminate commercial or multi family components in favor of other uses such as single family housing after initial residential phases have been built. Thus, there is no assurance that the points awarded for planned facilities or neighboring land uses will prove to have been warranted. The problem with this policy at this time is that it could allow some additional projects to be approved in sensitive fringe areas before City Plan is complete, and before a better informed decision can be made as to how to balance the points to be awarded for planned facilities versus those that have actually been constructed. Few key communityfacilities have yet been built in most sensitive fringe areas, so LDGS "base" points in these areas are most easily earned by being near planned facilities. ' Pending the completion of City Plan, this concern can be best addressed by revising the definitions of key LDGS " base points " to eliminate credit for planned but unconstructed facilities on an interim basis. 2. Increased importance should be placed on LDGS "base" locational criteria to emphasize air quality and transportation values in relation to other community values. The LDGS residential Density point chart has always recognized that while locational criteria are a high priority, there are other community values (such as the provision of affordable housing or energy conservation) that should also be recognized in the evaluation of a development project. This is accomplished through the point chart by giving credit for "bonus" criteria related to these other community values. In December of 1995, Council adopted changes to the LDGS that established a balance between location and other community values by requiring that in addition to the total of 60 points required for approval of a development, a minimum of 30 points must be earned from locational criteria. However, if there is a concern that locational criteria are relatively more important than the other community values represented in the point chart, the minimum number of base points required could be increased to reflect that higher priority. NEW INTERIM PHASING POLICY OPTIONS: ' Three new interim phasing policy options that respond to these issues are outlined below: 19 January 16, 1996 1. New Option I: Give "base" points for existing facilities only, and retain the existing ' requirement of a minimum of 30 "base"points. This option would be somewhat more restrictive than the recently adopted interim phasing criteria 2. New Option 2: Give "base"points for existing facilities only, and increase the minimum required "base" points to 40. This option would place increased priority on locational criteria relative to the other community values expressed by the bonus criteria. As a result, it would be more restrictive that New Option 1. 3. New Option 3: Give "base"points for existing facilities only, increase the required number of "base" points to 40, and up to 15 "base" points for the provision of affordable housing. This option would be similar to new Option 2, except that it would recognize the provision of affordable housing as being a community value of higher priority than the those represented by the other "bonus" points, and would have the practical effect of allowing some projects that would not be able to proceed under New Option 2 to go forward if an appropriate amount of affordable housing were provided. EVALUATION OF ALTERNATIVES: The attached staff report provides a more detailed evaluation of the practical effects of each of these ' new interim phasing policy options. In that report, 15 developable parcels were and evaluated against both the recently adopted existing interim phasing policy and each of the new policy options outlined above. Maps are included in that report that illustrate which of these test parcels would pass and which would fail the minimum base point requirements of each of the policy options. RECOMMENDATION. Council should review the maps contained in the attached staff report which illustrate alternative potential development patterns that could be allowed under each of the interim phasing policy options outlined below. Council should adopt the policy option associated with the potential development pattern that is most appropriate to allow to continue until more permanent phasing policies and development standards can be developed through City Plan by the end of 1996. The existing, recently adopted interim phasing policy would delay those projects that receive very few base points under existing LDGS point chart definitions. Extreme leap frog development would be delayed. January 16, 1996 New Option 1 would change existing LDGS point chart definitions to require that points only be earned from existing facilities. Less 'fringe" urban development would be allowed under this option. New Option 2 would include the changes made by New Option 1, and would also increase the importance of locational consideration relative to other community values by increasing the minimum required base points from 30 to 40. Still less 'fringe" urban development would be allowed. New Option 3 would make the same changes as New Option 2, but would recognize affordable housing as a high community value by allowing up to 15 additional base points be earned by providing affordable housing. This would allow a similar 'fringe " urban development pattern as New Option 1, except that some projects would be required to contain significant amounts of affordable housing." City Attorney Steve Roy stated after a motion is made the changes would be read into the record. - Policy Analyst for Community Planning and Environmental Services Tom Vosburg gave a brief staff report and spoke of the phasing criteria issues. He spoke of the intent of the interim phasing criteria, and stated the criteria were designed to improve the location of projects adjacent to City services, ' reduce vehicle miles traveled and support air quality concerns. He briefly outlined the options available. Councilmember Apt stated the Growth Management Committee supported Option 3 and spoke of the variety of reasons for revisiting the issue. He stated the Committee believed adopting interim criteria would discourage fringe development. He spoke in support of infill development with a mixture of affordable housing. Vosburg reported that no focus groups or public involvement opportunities have occurred. Councilmember Janett spoke of the prior input received by people in the development industry as well as environmental organizations. City Manager John Fischbach clarified this issue will be discussed at the Planning and Zoning Board meeting on January 22, 1996, and the Board will then advise Council of its recommendation. Councilmember Apt spoke of the need for quality development within the Urban Growth Area and of the costs involved to extend services. He stated a well planned higher density development in the Urban Growth area is needed. Vosburg spoke of how bonus points for affordable housing would be given and stated no analysis ' has been done regarding the impact the proposal would have on the price of housing in the area. He 21 January 16, 1996 reported the interim phasing criteria would expire December 31, 1996 and spoke of the definition ' of a "Neighborhood Shopping Center", noting the definition has been included in the LDGS. Councilmember Wanner made a motion, seconded by Councilmember Apt, to adopt Ordinance No. 2, 1996, Option 3, adding language to provide vesting of preliminary plans approved during the interim period for 1 year and changing the sunset provision to read "upon adoption of City Plan as an ordinance". After input from the City Attorney, Councilmember Wanner offered a friendly amendment to the previous motion, changing the interim period from 1 year to 18 months. Councilmember Apt accepted the motion as a friendly amendment to the previous motion. City Attorney Steve Roy read changes made to Option 3, into the record. Craig Howe, representing the Fort Collins Board of Realtors Political Action Committee, opposed the motion stating the Committee believed if the ordinance were to pass, property values would greatly increase and force people who work and want to buy property in Fort Collins to move to surrounding communities. He stated adoption of the Ordinance would violate the economic real estate rights of property owners who own property in the Urban Growth Area and/or on the fringe of Fort Collins. He urged Council to look at cause and effect in the "big picture". Rick Zier, attorney representing the Boxelder Sanitation District Board, urged Council to consult ' with the Boxelder Sanitation District in its planning efforts. William Harper, 2201 Karakul Drive, spoke of the impact the proposal would have on affordable housing and urged Council to consider a different alternative. Aletha Langum-Godwin, a Fort Collins resident and developer, urged Council to consider affordable housing issues when making its decision. Kathleen Kilkelly, representing the Northeast Neighborhood Coalition, spoke in support of Council's intent to prevent leap frog development and supported the motion. She stated this was a positive step in preserving the quality of life. Eldon Ward, Cityscape Design, spoke of process concerns and of the lack of community outreach. He stated if the Ordinance were adopted, it would hurt the ability to increase density everywhere. He urged Council to take a different approach to the issue. Bridget Schmid, a Fort Collins resident, stated many people working in Fort Collins live in surrounding communities and suggested giving credit to all infill projects that fall short of interim basis points. 22 ' 1 January 16, 1996 Scott Mason, President of Citizen Planners, urged adoption of the motion. He stated the Land Use Policy Plan, which was written in 1979, discourages urban sprawl and leap frog development. He supported Option 3 because of credit given for existing facilities and base points for affordable housing. Ken Scavo, a Fort Collins resident and small developer, opposed the motion and spoke of acquisition costs for infill properties and the impact on affordable housing. John Guiliano, 354 High Point Drive, stated his company specialized in building affordable housing and spoke of his reasons for not building in Fort Collins. Margaret Phillips, representing the Dillwood Heights Homeowner's Association, supported the motion and asked if developers and realtors had any positive suggestions to prevent leap frog development. Vosburg responded to Council questions and stated that in some cases, higher density infill would be more difficult. He spoke of how density point chart is structured and stated existing LDGS language is vague regarding the definition of "employment centers." He spoke of rewriting'the definition of "employment center" as it pertains to a focal point, and clarified approximately 1,400 residential units have been approved over the past year since phasing has been in effect. Councilmember Janett spoke of the need to encourage infill development, commenting that part of the reasoning behind the phasing criteria was to reserve land for future growth. Councilmember Apt spoke in support of the Ordinance, but requested further information on Criteria "D" before Second Reading as well as information on developed versus planned parks. Councilmember Kneeland spoke of her reasons for not supporting the motion, stating she believed it jeopardized City Plan efforts. Councilmember McCloskey stated although he agreed with several of the goals he did not support the motion. He expressed concerns regarding the process and stated City Plan should be completed before Council moves ahead with this Plan. Councilmember Smith spoke in support of the motion and concurred with comments from previous Councilmembers regarding the time frame in which the item was presented. He stated there were 3 weeks before Second Reading and invited those who expressed their concerns to contact him to discuss figures and facts before Second Reading. Councilmember Wanner spoke in support of the motion. 23 January 16, 1996 Councilmember Janett asked that staff look at the multi -family points issue before Second Reading. ' Mayor Azari requested staff respond to the input received. The vote on Councilmember Wanner's motion was as follows: Yeas: Councilmembers Apt, Azari, Janett, Smith and Wanner. Nays: Councilmembers Kneeland and McCluskey. THE MOTION CARRIED. Resolution 96-6 Allocating $235,000 of Community Development Block Grant (CDBG) Funds, Postponed to 2/6 The following is staff's memorandum on this item. "Executive Summary On June 6, 1995, the City Council passed Resolution 95-76 which allocated funds from the City's Community Development Block Grant (CDBG), from the Department of Housing and Urban Development, to various applicants for the FY 1995-96 Program year. One of the projects approved for funding was a "Set -Aside for Mobile Home Park Development Assistance" in the amount of $235,000. At the start of the FY 1995-96 CDBG Program year, on October 1, 1995, the City advertised for proposals for expenditure of the available funds. Several applications were received and reviewed by the CDBG Commission. The Commission's recommendation is reflected in Resolution 95-6. Copies of all applications were submitted earlier to the Council under separate cover. BACKGROUND: On June 6, 1995, the City Council passed Resolution 95-76 which allocated funds from the City's Community Development Block Grant (CDBG) from the Department of Housing and Urban Development to various applicants for the FY 1995-96 Program year. One of the projects approved for funding was a "Set -Aside for Mobile Home Park Development Assistance" in the amount of $235,000. At the start of the FY 1995-96 CDBG Program year, on October 1, 1995, the City advertised for proposals for expenditure of the available funds. A request for applications was necessary because a specific application for mobile home development assistance project/program was not approved as part of Resolution 95-76. The City initially received the following three proposals: $235,000 Fort Collins Housing Authority Homeownership Opportunities - 600 Block Tenth Street, Fort Collins, CO ' 24 January 16, 1996 Project proposes to develop 33 modular homes for sale in the $75,000 price range on property owned by the Authority, located in the 600 block of Tenth Street, which is south of east Vine Drive, east of Andersonville, and north of the San Cristo Subdivision. Sales would be restricted to Pioneer families for 30-60 day window of opportunity. CDBG funds would be used for infrastructure improvements. The minimum qualifying income would be $22,000. $ 62,250 The Resource Assistance Centerfor Nonprofits, Inc. Parkway Townhouses - 14 townhouses Project proposes to build 14 townhomes plus a community building to relocate 14 families from Pioneer Mobile Home Park. CDBG funds would be used to acquire SID Parcel #7725-77-001-002, located on the northwest corner of JFK Parkway and Troutman Parkway and SID Parcel #97360-00-051 a.k.a. Eastside Venture Property, located on the west side of JFK Parkway, south of Troutman Parkway. $165,000 Neighbor to Neighbor, Inc. Relocation Assistance and Counseling Project includes housing counseling, bi-lingual translation and relocation payments. JD&M Management Company, owner of the Pioneer Mobile Home Park, has provided $750 per family to assist with relocation expenses. CDBG funds would match JD&M's funds to provide each family with $1,500 for relocation expenses (damage deposits, utility transfer costs, first month's rent, trailer moving and/or storage, moving truck rental, and other needs). The above applications were reviewed by the CDBG Commission on November 9, 1995. During the meeting, a potential applicant (Don Parsons) addressed the Commission regarding a proposed mobile home park development project. Mr. Parsons indicated he had intended to work with the Housing Authority on a joint proposal. However, through some miscommunication, the joint application was not prepared in time to be submitted by the application deadline. The Commission chose not to make a recommendation forfunding based on the applications received but decided to reopen the process for additional or revised applications (see attached November 9 meeting minutes). The City readvertised on November 14, 1995. At the close of the second process the following three applications were received: 25 January 16, 1996 $235,000 Fort Collins Housing Authority ' Homeownership Opportunities - 600 Block Tenth Street Project proposes to develop 33 modular homes for sale in the $71,500 price range on property owned by the Fort Collins Housing Authority, located in the 600 block of Tenth Street, which is south of East Vine Drive, east of Andersonville, and north of Sun Cristo subdivision. Sales to be restricted to Pioneer families for 30-60 day window of opportunity. CDBG funds would be used for infrastructure improvement. The minimum qualifying annual income is $22,000. $ 35,000 The Resource Assistance Center for Nonprofits, Inc. Parkway Townhouses - 11 townhouses Project proposes to build 11 townhomes plus a community building to relocate 11 families from Pioneer Mobile Home Park. CDBG funds would be used to acquire SID Parcel #97360-00-051 a.k.a. Eastside Venture Property, located on the west side of JFK Parkway, south of Troutman Parkway. $200,000 Neighbor to Neighbor, Inc. Rehabilitation and relocation of Pioneer Mobile Homes and Relocation Assistance Project includes $15,000 of CDBG funds for housing counseling, bi-lingual ' translation and relocation payments. JD&M Management Company, owner of the Pioneer Mobile Home Park, has provided $750 per family to assist with relocation expenses. Another $100,000 of CDBG funds would match JD&M's funds to provide each family with $1,500 for relocation expenses (damage deposits, utility transfer costs, first month's rent, trailer moving and/or storage, moving truck rental, and other needs). $85,000 of CDBG funds would be used to match Aid Association for Lutherans $50,000 for rehabilitation of mobile homes. Expenditures would include rewiring, adding insulation, adding exterior siding, adding a sloped roof, new paint, or other means to meet the goals of this project in accordance with rules and codes of the City of Fort Collins and of the new park. The total amount of $135,000 would be equivalent to approximately $3,375 per unit. The above applications were reviewed by the CDBG Commission on December 14, 1995. One of the initial applicants resubmitted the same proposal, while the other two initial applicants used the additional time to submit slightly different amended proposals. The Commission forwards the following recommendation to the City Council for allocation of available funds (see attached December 14 meeting minutes): 26 1 J January 16, 1996 $150,000 Fort Collins Housing Authority Homeownership Opportunities - 600 Block Tenth Street Justification: The Commission believes this project provides homeownership opportunities. This project would also benefit more residents than the other proposals. $ 85,000 Neighbor to Neighbor, Inc. Rehabilitation of Pioneer Mobile Homes (only) Justification: The Commission believes this project provides rehabilitation opportunities which are necessaryfor Pioneer mobile homes to be relocated to an appropriate site in Fort Collins. This project would also benefit more residents than the other proposals. " Chief Planner Ken Waido gave a brief staff presentation on this item and stated that several mobile homes will not be able to be moved. Dan MacArthur, Chair of the Community Development Block Grant Commission, responded to Council questions and spoke of the Commission's recommendations. Rochelle Stephens, Executive Director of the Fort Collins Housing Authority, clarified the Housing Authority owns a 5 acre parcel at the site and 20 parcels would be for sale. She spoke of possible funding options available to assist potential low income buyers. Bill Bertsche, member of the Community Development Block Grant Commission, responded to Council questions and spoke of the research the Committee did on how to relocate the maximum residents with available funds. Councilmember Kneeland made a motion, seconded by Councilmember McCluskey, to adopt Resolution 96-6. Rusty Collins, Executive Director of Neighbor to Neighbor, spoke of the process involved with bringing the mobile homes up to Code after they are relocated to Dry Creek Mobile Home Park. He stated the funding was only for mobile home rehabilitation, and reported eviction notices would be sent out on March 1, 1996, with an eviction date of September 1, 1996. Councilmember Wanner emphasized he would like to hear all other possibilities before voting on the item. 27 January 16, 1996 Waido stated the majority of mobile homes would not be acceptable at the new park because of their ' age and appearance. Jeff Wright, Pastor of Heart of the Rockies Christian Church and representing a group of Pastors in the South East area, urged Council to reconsider TRAC and Neighbor to Neighbor housing requests. Beth Music, Housing Counselor for Neighbor to Neighbor, stated she has counseled between 70 and 80 households and stated that only 1 or 2 families would be able to afford mortgages in the $70,000 range. She stated the joint development with the TRAC and Don Parsons (Neighbor to Neighbor) development would better help with homeownership opportunities. She stated the Housing Authority's proposal would only serve a few families and requested funding assistance for Neighbor to Neighbor for its counseling service. Bill Bertsche, CDBG member spoke of the Commission's concerns regarding the TRAC proposal and that the proposal would not be completed in time to serve the families of Pioneer Mobile Home Park. Lou Stitzel, 521 E. Laurel, spoke of the TRAC home plan. She stated that CARE housing has set aside several units that would be available in August. Sister Mary Alice Murphy, spoke of the need for a cooperative effort between all agencies. Rochelle Stephens, Executive Director Fort Collins Housing Authority, showed Council a ' preliminary blueprint of the Housing Authority's proposed development. Rusty Collins, Executive Director of Neighbor to Neighbor, spoke of the urgency to take action in the relocation efforts. He reported the Community Development Block Grant Commission reduced Neighbor to Neighbor's counseling budget by $9,000 and spoke of the additional costs incurred by Neighbor to Neighbor for its counseling services due to the mobile home relocation. Councilmember Janett stated adoption of the motion would only stand to benefit a small amount of families and would not support the motion. She requested the Resolution be postponed giving more time to receive additional information. Councilmember Kneeland withdrew her previous motion. Councilmember Janett made a motion, seconded by Councilmember Wanner, to postpone consideration of Resolution 96-6 to February 6, 1996. Yeas: Councilmembers Apt, Azari, Janett, Kneeland, McCluskey, Smith and Wanner. Nays: None. THE MOTION CARRIED. W. January 16, 1996 Resolution 96-4 Amending the Administrative Regulations of the Development Impact Fee Rebate Program for Affordable Housing by Expanding the Range of Rebates for Homeownership Projects Postponed to 2/6 The following is staff's memorandum on this item. "Executive Summary The amendment to the Administrative Guidelines for the City's Development Impact Fee Rebate Program will increase the allowable rebates to $4,200 per unit for homeownership projects which provide housing for families who earn 30% of the Area Median Income (AMI). The financial impact of the amendment will be minimal since there would not likely be many homeownership opportunities developed for families at the 30% AMI level. BACKGROUND: On October 4, 1994, the City Council passed, Ordinance No. 145, 1994, amending Chapter 5 of the City Code to add an article permitting the rebate of City development impact fees for the purpose of promoting affordable housing. Adopted as part of Ordinance 194, 1994, was Section 5-356 authorizing the City Manager to develop Administrative Regulations for the rebate program. Also on October 4, the Council passed Resolution 94-167 adopting the Administrative Regulations for the rebate program. The program's regulations established two rebate schedules, one for rental projects and one for homeownership projects. The schedules established a graduated scale of rebates allowing for higher rebates for projects which provided housing for families with lower levels of income. The rebate schedule for rental projects (see attached page 2 of the regulations) starts with a $600 per unit rebate for units for families at 60% of the Area Median Income (AMI), increasing to $4,200 per unit for units for families at 30% of AMI. The rebate schedule for homeownership projects (see attached page 4 of the regulations) starts with a $600 per unit rebate for units for families at 80% of the AMI, increasing to $3,000 per unit for units for families at 40% of AMI. The difference in the amount of rebates allowed between the two schedules was done intentionally to encourage the construction of additional affordable rental units which were deemed in greater need than homeownership opportunities. Ms. Lou Stitzel, Director of the Resource Assistance Center for Non -profits (TRAC), requested that the City reevaluate the level of rebates allowed for homeownership projects. The issue was discussed at the November 2, 1995, Affordable Housing Board meeting. The Board voted unanimously to recommend to the Council that the rebate chart for homeownership projects be ' modified to include another increment at the 30% of AMI level with a rebate amount of $4,200 per 29 January 16, 1996 unit (see attached November 2, 1995, Board minutes). This Resolution would add another column (the column in bold type) to the existing homeownership rebate chart for the 30% AMI level as shown below: PERCENTAGE OF AREA MEDIAN INCOME Household Size 30% 40% ..... 80% I Person $ 9,270 $12,400 ..... $24,750 2 People 10,620 14,150 ..... 28,300 3 People 11,940 15,950 ..... 31,800 4 People 13,260 17,700 ..... 35,350 5 People 14,310 19,850 ..... 38,200 6People 15,390 20,550 ..... 41,000 7People 16,440 21,950 ..... 43,850 8 People 17,490 23,350 ..... 46,650 Maximum Rebate/Unit $4,200 $3,000 ..... $600 Rebates are made from the Affordable Housing Fund. The financial impact of the amendment will be minimal since there would not likely be many homeownership opportunities developed for families at the 30% AMI level. " Chief Planner Ken Waido gave a brief presentation of this item and explained the options available. He clarified that the rebate program does not specifically set out how much or what percentage of fees would be rebated. After Council discussion City Manager John Fischbach requested that the item be postponed until February 6, 1996. Councilmember McCluskey made a motion, seconded by Councilmember Apt, to postpone the item to February 6, 1996. Yeas: Councilmembers Apt, Azari, Janett, Kneeland, McCluskey, Smith and Wanner. Nays: None. THE MOTION CARRIED. Councilmember McCluskey asked if someone would be interested in replacing him on the Legislative Review Committee due to his difficulties in being able to attend meetings. He stated if meeting times could be changed to later in the day he would be able to attend. 30 C 1 January 16, 1996 Councilmember Apt stated changing the meeting time would be discussed at the upcoming Legislative Review Committee meeting. Councilmembers Apt and Kneeland requested information regarding the Drake Road design and expressed concerns that it did not appear to be "pedestrian friendly". City Manager John Fischbach reported he would arrange for a briefing with Councilmembers Apt and Kneeland to show them what the street will look like. Councilmember Janett made a motion, seconded by Councilmember Smith, to adjourn to 6:30 p.m. on Tuesday, January 23, 1996. Yeas: Councilmembers Apt, Azari, Janett, Kneeland, McCluskey, Smith and Wanner. Nays: None. THE MOTION CARRIED. M[1111;3`►l►I_I_11 " The meeting adjourned at 11:00 p.m. ATTEST: 11�k:yl�g �-- - City Clerk 31 Mayor