HomeMy WebLinkAboutMINUTES-10/05/1993-Regular' October 5, 1993
COUNCIL OF THE CITY OF FORT COLLINS, COLORADO
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
October 5, 1993, 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: Apt, Azari,
Horak, Janett, Kneeland and Winokur.
Councilmembers Absent
Staff Members Present
McCluskey
Burkett, Krajicek, Roy.
Citizen Participation
Recreation Manager Jean Helburg recognized business person Herb Schlicht, and
staff members Dave Mosnik and Deborah Bueno for their work with the Summer League
Basketball program.
Mayor Azari presented appreciation plaques to Dave Mosnik and Deborah Bueno, and
Herb Schlicht.
Sam Lien Fuchs, representing the Environmental Committee of the Chamber of
Commerce, presented Councilmembers with the Environmental Notebook and Resource
directory. She reported it was the first publication of its type in the nation
presented by a Chamber of Commerce for its members and non-members regarding
information and compliance for .issues and regulations on the environment.
Citizen Participation Follow-up
Councilmember Janett thanked the Chamber for its work on the notebook.
Agenda Review
City Manager Steve Burkett stated there were no changes to the agenda as
published.
Councilmember Winokur requested that Item #14, First Reading of Ordinance No.
112, 1993, Appropriating Prior Year Reserves and Unanticipated Revenue in the
Special Assessments Debt Service Fund, be withdrawn from the Consent Agenda.
Councilmember Janett requested that Item #13, First Reading of Ordinance No. 111,
1993 Approving an Addendum to the Agreement of Purchase and Sale of Real Property
to Shields Street Corporation of Real Property Described as a Tract in the
Cunningham Corner PUD, be withdrawn from the Consent Agenda.
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October 5, 1993
Councilmember Apt requested that Item #7, Second Reading of Ordinance No. 105,
1993, Amending Section 26-343 of the Code Pertaining to Wastewater Discharge
Limiance No.
109,tations, and Item #11, 1993, Appropriating Funds tand Authorizing the ponement of the cPurchase ond �of Certainng of nDowntown '
Properties Owned by Trillium Corporation until October 19, be withdrawn from the
Consent Agenda.
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 will be considered separately under Agenda Item #20, Pulled
Consent Items.
7.
M
The City is required by federal pretreatment regulations to develop
technically -based limits for pollutants discharged by industries into the
City's wastewater treatment system. These limits have been developed by
the Wastewater Utility using EPA guidelines. Some limits have become more
stringent, some less stringent, some have been eliminated and some new
limits have been added. These limits are designed to protect the City's
wastewater treatment system, worker health and safety, and the
environment.
A silver limit is being implemented which applies to all businesses that '
process photographic or x-ray film. All such businesses that are not
already reclaiming and recycling silver from their wastestreams will be
required to do so. It will cost a small volume discharger, such as an
individual dentist, approximately $7.00 per month to reclaim silver. All
large volume dischargers in Fort Collins are already reclaiming their
silver. Some dischargers may need to improve their silver reclamation
systems to comply with the new limits. This Ordinance was unanimously
adopted on September 21, 1993.
The Streets Department Work for Others (WFO) Program is a "dollar -in,
dollar -out" program. In other words, every dollar spent is matched with
a dollar of revenue. The work performed in the WFO Program is at the
request of other City Departments. For example, Engineering contracts for
cracksealing and patching for the street overlay project, Light and Power
pays to repatch its trenches, Storm Drainage contracts for mowing
detention ponds and cleaning catch basins, and Traffic pays for new sign
or pavement marking installation.
Each year during the budget process, Streets works with other City
departments to estimate the demand for services, and budgets the amount as
part of the WFO portion of the budget. The original estimate for the WFO '
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October 5, 1993
10.
11
9.
1993 budget was $800,000. Ordinance No. 106, 1993, which was unanimously
adopted on September 21, appropriates an additional E750,000 for
unanticipated street overlay work for Engineering and Storm ❑ra;n��e
Based on the original ordinance and on the Supreme Court decision,
proceeds from the TUF can only be spent on street maintenance activities.
This summer, the City's Engineering and Streets Departments have been
working closely on identifying and prioritizing street maintenance needs
which have not been funded from existing street maintenance budgets.
These needs include: replacing portions of the concrete pavement on some
of Fort Collins' oldest streets; more patching, crack sealing, and some
reconstruction
number
asphalt
streets; several arterial streets incldng TimberleoadadOverland
Trail; and repairing some of the damage caused by snow and ice removal
operations during the past winter.
Ordinance No. 107, which was unanimously adopted on First Reading on
September 21, transfers appropriations of $360,000 of TUF proceeds from
the Transportation Fund Reserves and appropriated for the Street Overlay
& Sealcoat Project in the Capital Projects Fund. These TUF proceeds will
then be expended during the remainder of 1993 and into 1994 for the street
maintenance activities described in the preceding paragraph. The
remaining $89,000 will be appropriated in the Streets portion of the
Transportation Fund as part of the 1994 budget process, and these funds
will also be expended for local street maintenance activities.
un aeptember 14, 1993
and IL Site Plan to
Therefore, at this tin
the remainder of the
requested vacation of
Ordinance No. 108, wF
September 21, endorses
the Planning Director approved a Minor Subdivision
replat the parcel owned by Phelps-Tointon, Inc.
e, Phelps-Tointon and Mr. Keith Hess, the owner of
lots abutting the Logan Court right-of-way, have
the right-of-way in conjunction with the replat.
ich was unanimously adopted on First Reading on
the request for right-of-way vacation.
authorizes the purchase9
of the LaPorte America lotch was adopted 4-2�andna strip of land
along the alley behind 281 North College from Trillium Corporation. The
negotiations related to these properties have taken place over the last
three years, beginning with Burlington Northern Resources, then Glacier
Park and finally with Trillium Corporation. The sources of funding for
this project have changed since the negotiations in 1991. The major
source of funding remains the Parking Division reserves held in the
Transportation Fund. This source will be supplemented with the remaining
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October 5, 1993
12.
13.
savings in the Essential Capital Projects account and monies in the 1993
Operating Contingency.
Second Reading is being postponed until October 19th, in order to receive
comment from the Transportation Board and to coordinate the parking lot
with the final agreement with the new owners of the Opera Galleria
project.
This is a request to rezone approximately 80.1 acres, located south of
Harmony Road and east of Timberline Road, from the T-Transition District
to the R-L-P, Low Density Planned Residential, District. The property is
presently undeveloped.
APPLICANTS: Geneva Homes, Inc.
344 E. Foothills Parkway
Suite 12
Ft. Collins, CO 80525
OWNERS: Richard J. and Thomas
Catherine C. Gutru
Morroni
The St. Stephen Foundation
organization)
The St. Christopher
organization)
c/o Thomas J. Morroni
P.O. Box 16383
Denver, CO 80216
(a Colorado not for profit
Foundation (a Colorado not for profit
On July 20, 1993, the Council adopted Ordinance No. 79, 1993, which
authorized the sale of a tract of land in the Cunningham Corner PUD ("the
Property") to the Shields Street Corporation ("Shields Street"). The
purchase agreement provided that the closing be held contingent upon
Shields Street obtaining certain financing on or before December 1, 1993.
It now appears that this financing can not be secured until March of 1994.
Therefore, Shields Street is requesting that the City extend the date of
closing to March 15, 1994.
Although the City will incur an additional $3,841 in interest costs by
delaying the closing, the sales price is still enough to cover all of the
principal and 85% of the interest expense associated with the Property.
No other buyers have expressed an interest in the Property at this time.
Therefore, staff recommends that Council approve this extension.
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October 5, 1993
14.
15.
16.
The $400,000 is needed from the Reserve for Special Assessment Debt
Service to pay the interest due on the unpaid assessments for properties
held in liens and inventory. The balance of the reserve available for use
in 1994 and future years will be $835,000.
Secondly, the early payoff of certain assessments has generated
unanticipated revenue for the payment of special assessment debt. This
year, $800,000 more than anticipated from annual assessment collections is
available for calling of bonds on December 1, 1993. This money must be
appropriated before that date to be available for bond payments.
The Fort Collins Housing Authority ("the Authority") has made a payment to
the City from its 1992 budget as a "Payment in Lieu of Taxes" ("PILOT") in
the sum of $16,618.95. Subsequent to making that payment, the Authority
requested that the City refund the money to the Authority to fund needed
affordable housing related activities to attend to the low-income housing
needs of Fort Collins residents.
Resolution 92-93 reinstated the requirement of the Authority to make
annual PILOTS to the City. The purpose of the resolution was to make it
clear that these funds are the property of the City and not excess HUD
funds. The City is at liberty to dispose of them as it deems appropriate
in accordance with law, including remitting the funds to the Authority if
the Council determines that such remittal serves a valid public purpose.
The Fort Collins Public Library has been awarded a United States
Department of Education grant in the amount of $35,000 to continue the
adult literacy activities at the Library through 1994. In addition, the
Library has received $32,167 from the same source to continue the literacy
program providing one-on-one tutoring in basic literacy and job skills to
low -literate, unemployed Fort Collins residents.
Library literacy services staff will continue to pursue grants and gifts
for these activities from other appropriate sources and to work with other
literacy programs in the community to identify needs and maximize
resources.
17. Resolution 93-144 Adopting a Drinking Water Quality Policy for the City of
Fort Collins.
On September 1, 1992, Council established a joint City Council/Water Board
' Committee to make recommendations to the Council regarding the City's
drinking water quality policy. In May of this year, the Committee
completed work on a draft drinking water quality policy. The draft policy
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October 5, 1993
was then distributed to various City boards and adjacent water districts
for their review and input.
Results of the various meetings with the City boards and water districts '
were shared with the Committee members and all were comfortable with
proceeding to recommend the draft policy to the Council for formal
adoption.
18. Resolution 93-145 Making an Appointment to the Building Review Board.
A vacancy currently exists on the Building Review Board due to Thomas
Sibbald's appointment to the Affordable Housing Board on September 21,
1993. The Boards and Commissions Manual, which has been adopted by
Council, includes a policy that prohibits an individual from serving on
more than one standing board or commission at the same time.
Councilmembers Azari and McCluskey reviewed the active applications on
file and are recommending Rudy Hansch be appointed to fill the term which
expires July 1, 1997.
19. Routine Deeds and Easements.
a. Powerline easement from Mark R. Bowen, 1600 Prospect Lane, needed to
install an oval vault to underground existing overhead electric
system. Monetary consideration: $42.
Items on Second Reading were read by title by City Clerk Wanda Krajicek.
7.
8. Second Reading of Ordinance No. 106, 1993, Appropriating Unanticipated
Revenue in the Streets Department Portion of the Transportation Fund.
VE
10.
11
27.
Postponement of the Second Reading of Ordinance No. 109, 1993,
Appropriating Funds and Authorizing the Purchase of Certain Downtown
Properties Owned by Trillium Corporation until October 19.
Items on First Reading were read by title by City Clerk Wanda Krajicek.
12.
Hearing and First Reading of Ordinance No. 110, 1993, Amending the Zoning I
District Map by Changing the Classification for that Certain Property
Known as the Brookside Village at Rock Creek PUD Rezoning.
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October 5, 1993
25.
1
26.
27.
U-11
29.
Items Relating to the Cable TV Franchise.
A. Hearing and First Reading of Ordinance No. 115, 1993 Granting a
Cable TV Franchise to The World Company, Doing Business as Columbine
CableVision; and
B. Hearing and First Reading of Ordinance No. 116, 1993 Extending the
Term of the Existing Franchise Agreement with The World Company,
Doing Business as Columbine CableVision.
A. First Reading of Ordinance No. 118, 1993, Authorizing the Sale to
Colorado Land Source, Ltd. of Real Property Described as Tract A of
the Fairbrooke SID and Tax Sale Certificates of Purchase for Lots 1
Through 25, Inclusive, Block 1, and Lots 1 Through 16, Inclusive,
Block 2, Brittany Knolls PUD, First Filing.
First Reading of Ordinance No 119 1993 Amending Section 23-111 of the
Code.
Councilmember Apt made a motion, seconded by Councilmember Janett, to approve and
adopt all items not removed from the Consent Calendar. Yeas: Councilmembers
Apt, Azari, Horak, Janett, Kneeland and Winokur. Nays: None.
THE MOTION CARRIED.
291
October 5, 1993
Ordinance No. 105, 1993,
Amending Section 26-343 of the Code Pertaining '
to Wastewater Discharge Limitations,
coated on Second Reading Postponed to October 19
The following is staff's memorandum on this item.
'EXECUTIVE SUMMARY
The City is required by federal pretreatment regulations to develop technically -
based limits for pollutants discharged by industries into the City's wastewater
treatment system. These limits have been developed by the Wastewater Utility
using EPA guidelines. Some limits have become more stringent, some less
stringent, some have been eliminated and some new limits have been added. These
limits are designed to protect the City's wastewater treatment system, worker
health and safety, and the environment.
A silver limit is being implemented which applies to all businesses that process
photographic or x-ray film. A11 such businesses that are not already reclaiming
and recycling silver from their wastestreams will be required to do so. It will
cost a small volume discharger, such as an individual dentist, approximately
$7.00 per month to reclaim silver. A71 large volume dischargers in Fort Collins
are already reclaiming their silver. Some dischargers may need to improve their
silver reclamation systems to comply with the new limits. This Ordinance was
unanimously adopted on September 21, 1993."
Councilmember Apt reported he has received inquiries from citizens regarding this
item. He stated limits on some pollutants have been changed and requested '
information regarding what has become less stringent.
Director of Water and Wastewater Utilities Mike Smith stated he was unable to
respond to Councilmember Apt's questions, noting Environmental Services Manager
Keith Elmund had been detained and would be able to answer Council questions upon
his arrival.
Councilmember Apt made a motion, seconded by Councilmember Janett, to postpone
discussion on this item until later in the meeting. Yeas: Councilmembers Apt,
Azari, Horak, Janett, Kneeland and Winokur. Nays: None.
THE MOTION CARRIED.
Ordinance No. 109, 1993,
Appropriating Funds and Authorizing
the Purchase of Certain Downtown Properties -
The following is staff's memorandum on this item.
"EXECUTIVE SUMMARY
Ordinance No. 109, 1993, which was adopted 4-2, on September 21, authorizes the ,
purchase of the LaPorte America lot and a strip of land along the alley behind
281 North College from Trillium Corporation. The negotiations related to these
292
October 5, 1993
properties have taken place over the last three years, beginning with Burlington
Northern Resources, then Glacier Park and finally with Trillium Corporation. The
sources of funding for this project have changed since the negotiations in 1991.
The major source of funding remains the Parking Division reserves held in the
Transportation Fund. This source will be supplemented with the remaining savings
in the Essential Capital Projects account and monies in the 1993 Operating
Contingency.
Second Reading is being postponed until October 19th, in order to receive comment
from the Transportation Board and to coordinate the parking lot with the final
agreement with the new owners of the Opera Galleria project."
Councilmember Apt asked if Council would be receiving further information on this
item before second reading.
Mayor Azari spoke of the reasons for postponing this item.
Councilmember Horak made a motion, seconded by Councilmember Apt, to postpone
consideration of Second Reading of Ordinance No. 109, 1993 to October 19, 1993.
Yeas: Councilmembers Apt, Azari, Horak, Janett, Kneeland and Winokur. Nays:
None.
THE MOTION CARRIED.
Ordinance No. 111, 1993
Approving an Addendum to the Agreement
' of Purchase and Sale of Real Property
to Shields Street Corporation of Real
Property Described as a Tract in the Cunningham Corner PUD, Adopted
The following is staff's memorandum on this item.
"FINANCIAL IMPACT
By extending the date of closing by three months, the City will incur another
$3,841 in interest cost on the outstanding principal.
EXECUTIVE SUMMARY
On July 20, 1993, the Council adopted Ordinance No. 79, 1993, which authorized
the sale of a tract of land in the Cunningham Corner PUD ("the Property") to the
Shields Street Corporation ("Shields Street"). The purchase agreement provided
that the closing be held contingent upon Shields Street obtaining certain
financing on or before December 1, 1993. It now appears that this financing can
not be secured until March of 1994. Therefore, Shields Street is requesting that
the City extend the date of closing to March 15, 1994.
Although the City will incur an additional $3,841 in interest costs by delaying
the closing, the sales price is still enough to cover all of the principal and
85% of the interest expense associated with the Property. No other buyers have
' expressed an interest in the Property at this time. Therefore, staff recommends
that Council approve this extension."
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October 5, 1993
Council member Janett asked at what rate interest would accrue if the deal was not
closed in the extension period.
Financial Policy Analyst Susanne Edminster stated the developer would know by '
March if financing would be secured. She noted if a situation were to occur and
the developer needed another extension the issue would be renegotiated.
Councilmember Janett made a motion, seconded by Councilmember Winokur, to adopt
Ordinance No. 111, 1993 on First Reading. Yeas: Councilmembers Apt, Azari,
Horak, Janett, Kneeland and Winokur. Nays: None.
THE MOTION CARRIED.
Ordinance No. 112, 1993,
Appropriating Prior Year Reserves
ated Revenue in the
Soeciala Assessmentnd s Debt Service Fund, Adollted
The following is staff's memorandum on this item.
"FINANCIAL IMPACT
This ordinance authorizes the following appropriations:
$400,000 transferred from prior year debt service reserves to pay the interest
portion on the debt represented by tax certificate properties. After this
transfer, the reserve balance available, including interest earnings, will be
$835,000. '
$800,000 in unanticipated revenue from special assessments which will be used
special assessment debt to $7,470,000. This will
to pay principal on SID bonds on December 1, 1993. reduce the total
$1,416,000 to reflect the value of acquired properties deeded to the City and
he7d for resale. The properties represented by this appropriation include Lake
Shore Estates, $1,400,000, which is included in both Provincetowne/Portner SID
#81 and South Lemay SID #86 and the Eastside property which is in Heart SID #84.
EXECUTIVE SUNNARY
The $400,000 is needed from the Reserve for Special Assessment Debt Service to
pay the interest due on the unpaid assessments for properties held in liens and
inventory. The balance of the reserve available for use in 1994 and future years
will be $835,000.
Secondly, the early payoff of certain assessments has
revenue for the payment of special assessment debt. This year, unanticipated
than anticipated from annual assessment collections is available for calling
0ng oof
bonds on December 1, 1993. This money must be appropriated before that date to
be available for bond payments.
The City will be deeded both the Lake Shore Estates and Eastside properties in
1993. The acquisition of these properties will be recorded as an expenditure at
the time of acquisition based on appraised value along with an equal amount of
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October 5, 1993
special assessments revenue. Appropriations are needed in order to authorize the
' expenditure. The 1994 budget includes appropriations for land anticipated to be
deeded to the City during the year."
Financial Policy Analyst Susanne Edminster briefly outlined the reasons for the
appropriations.
Controller Dave Agee responded to Council questions.
Councilmember Winokur made a motion, seconded by Councilmember Apt, to adopt
Ordinance No. 112, 1993 on First Reading. Yeas: Councilmembers Apt, Azari,
Horak, Janett, Kneeland and Winokur. Nays:' None.
Ei91•yll) W I1.1i1:11911A
Councilmember Reports
Councilmember Janett spoke of a recent meeting she and Mayor Azari held with
residents of East Laurel and Whedbee Streets. She reported residents expressed
concerns regarding the outcome of the rezoning in the Eastside Neighborhood Plan
and requested staff review the zoning classification.
Councilmember Apt spoke of a recent meeting he attended with. the County
Commissioners to discuss the Urban Growth Area Agreement, development outside the
UGA and foothills issues.
Public Hearing
' City Manager Steve Burkett stated the second and final reading of the 1994 budget
would be held on November 16, 1993.
Steven Strauss, 5849 Plateau Court, requested $500 for the Environmental Clearing
House to help pay the cost for printing and mailing a proposal to a variety of
foundations, organizations and corporations to raise money to fund the Clearing
House.
Cindy Young, a Fort Collins resident, urged Council to support the DARE program.
Gary Peterson, 1805 Crestmore Place, opposed funding for the DARE program and
spoke of a report that addresses different drug prevention strategies being used
in various school systems.
Angela Holland, a 15 year old student, spoke in support of the DARE program.
Dennis Abrams, former Los Angeles resident, supported funding for additional law
enforcement officers.
Marti Moore, 2401 Newport Court, urged Council to support funding for the DARE
program. She stated it was important for parents and children to receive drug
awareness information.
Judy Smith, a Fort Collins resident, spoke in support of the DARE program and
' stated DARE teaches children how to make good choices.
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October 5, 1993
Weston Smith, 6th grader at Olander, stated he believed DARE is a worthwhile
program and supported funding for the program. '
Polly Cletcher, 1348 Woodcrest Court, urged Council to support the City Manager's
1994 Budget request, and supported funding for additional police officers.
Robert McCormick, representing the Choice City Boxing Club, requested Council
help fund the Choice City Boxing Club program by contributing $150 per month to
cover program costs.
Cheryl Swartz, speaking on behalf of the Choice City Boxing Club, gave a brief
background of the Club and urged Council to support the Club by funding $150 per
month.
Jack O'Neill, a Fort Collins resident, stated he attended a 6th grade DARE
program and urged Council to support funding for the DARE program.
Shane Swartz, Choice City Boxing participant, spoke of the positive attributes
of the Club. He stated it is a positive alternative to hanging out and being a
juvenile delinquent.
John Jolly, 2101 Essex Court, urged Council to support funding for additional
police officers.
Phil Porter, Larimer County Deputy Sheriff speaking on behalf of the Choice City
Boxing Club, spoke of the positive attributes of the Club and asked Council to
consider its funding request.
Tom Sibbald, 725 Bonita Avenue, commended staff and Council for increasing ,
funding for affordable housing. He expressed concerns regarding the utility rate
increases and the impact the increases would have on the occupants of rent
restricted housing. He requested Council revisit the proposed utility rate
increases and the storm drainage basin fee increases.
John Peacock, representing the Front Range Railroad, asked Council to grant his
request for $40,000 for a feasibility study. He reported he and officials from
Union Pacific would be meeting to discuss anticipated changes for the north Front
Range.
Al Bacilli, 520 Galaxy Court, opposed the DARE program and stated the police need
to be in the streets not in the schools. He supported funding for additional
officers.
Bill Stout, 2726 Nottingham Square, urged Council to support the DARE program and
additional officers. He spoke of taxpayer money that could be saved if the DARE
program prevented one addiction.
Bruce Lockhart, 2500 East Harmony Road, spoke in opposition of funding for
additional police officers.
Maria Jolly, 2101 Essex Court, urged Council to support funding for additional
police officers.
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October 5, 1993
Items Relating to the Cable TV Franchise
I
The following is staff's memorandum on this item.
'EXECUTIVE SUMMARY
A. Hearing and First Reading of Ordinance No. 115, 1993 Granting a Cable TV
Franchise to The World Company, Doing Business as Columbine CableVision;
and
B. Hearing and First Reading of Ordinance No. 116, 1993 Extending the Term of
the Existing Franchise Agreement with The World Company, Doing Business as
Columbine CableVision.
Whether City Council does or does not adopt on first reading Ordinance No. 115,
1993, which grants a new franchise to Columbine, staff recommends that Council
adopt on first reading Ordinance No. 116, 1993, which extends the terms of the
existing franchise from November 6, 1993, until March 15, 1994. (The extension
may still be necessary in the event Council does not adopt Ordinance No. 115,
1993, on second reading.)
These are the terms of some of the major provisions of the Franchise Agreement:
1) Term of the New Franchise.
The term of the new franchise is for fifteen years, so long as Columbine
owns the cable system; if Columbine sells the system, the term w0l be for
twelve years.
' 2) Upgrade.
Columbine is to upgrade its current cable system to a 76 channel, 550
megahertz, state-of-the-art system within four years of the effective date
of the new franchise. However, if Columbine can demonstrate to the City
Manager that performing the upgrade within four years will result in an
unreasonable economic hardship on Columbine due to a significant change in
technology, or due to a significant lack of new product or new product
demand, then the company will be entitled to up to an additional eighteen
months to complete the upgrade.
3) Franchise Fee.
The franchise fee has been raised from 3% of subscriber revenues to 5% of
gross revenues. The average monthly impact to the subscriber will be an
increase of approximately 430 per month starting in December, 1993. To
encourage the development of new, non -cable technologies, such as data
transmission, such technologies will be exempt from franchise fees for a
period of three years after their introduction by Columbine.
Other Key Provisions:
* Line Extension - The density requirement for providing cable service
within the City has been decreased from 50 dwelling units per linear mile
to 25 dwelling units.
I
* Public Access - Columbine will continue to produce the "Take One" program,
or one substantially similar to it. "Take One" has helped answer much of
the demand for public access programming in Fort Collins. In addition,
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October 5, 1993
Columbine will make a camcorder available for public check-out and use,
free of charge, for the production of public access programming. If
demand for public access programming time reaches a level above the '
ability of Columbine to cablecast such programming on a single channel
during regular viewing hours, an additional channel for public access
programming will be made available.
* The Drop System - The drop system refers to the cable running through
subscribers' yards and to their homes. This system was identified in a
technical analysis of Columbine's system as needing improvement,
particularly with regard to the shallow burial depth of some of the
coaxial cable. The franchise requires that all new drops and those that
are serviced in the future be buried at least 6 inches in the ground,
which is consistent with common industry practices in this region.
BACKGROUND:
The cable TV franchise renewal process began approximately two years ago. During
these two years, staff and its business and technical consultants have conducted
a financial audit and technical evaluation of Columbine CableVision, issued a
public opinion survey regarding Columbine, and sponsored five public forums. The
general conclusions resulting from the information gathering process were that
Columbine is we11-regarded in the community and has established a record of
relatively high quality customer services and relatively low prices. In
addition, staff offered Council Members an opportunity to meet individually and
discuss the franchise renewal in January, 1993, and in fact met with two
Councilmembers. Staff also discussed the franchise renewal with Council at a
work session on May 11, 1993. Extensive negotiations with Columbine were
conducted this year over a four -month period, June through September.
'
In the course of the renewal process, staff and its consultants recognized that
the City of Fort Collins was in a unique position with regard to cable television
owing to the nature of Columbine as a business. In many cities, large, multiple
system operators, such as TCI and Scripps -Howard, provide the local cable TV
service. Columbine, on the other hand, is a family -owned business with one other
cable TV system. There are several trade-offs for the community in having
Columbine as its cable operator. On the one hand, Columbine has historically
maintained its rates at substantially lower levels than larger cable operators
in comparable communities. In addition, data indicates that Columbine's level
of customer satisfaction has been high. On the other hand, Columbine states that
it is not as financially able to upgrade its system in as short a time period as
some of the larger operators. There is risk involved for cable operators
performing upgrades within the next two to three years because product
availability and subscriber demand for new products have not been firmly
established yet. Columbine's capacity to absorb risk and financial loss is less
than cable operators with numerous systems, and staff believes that a schedule
that allows Columbine four years in which to complete the upgrade is reasonable
given its market position.
The Cable TV Board and staff believe that, on balance, the City benefits from
having Columbine as its cable operator, and that what Columbine provides in terms
of fair pricing and high customer satisfaction offsets its limited ability to
offer the latest cutting -edge technology at the earliest possible time. Working ,
from data that indicates that Columbine has been historically capable and
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October 5, 1993
responsible in the provision of cable TV services to the Fort Collins area, and
from the assumption that keeping such
staff negotiated this franchise with
a company in
the goal of
Fort Collins makes good sense,
providing a framework in which
'
Columbine could continue to succeed
and provide
the services that subscribers
want, while maintaining its rates at
reasonable
levels.
Discussion of Franchise Term
Staff negotiated a fifteen -year franchise with Columbine, based on primarily
three considerations. First, as a well -regarded service provider with a proven
track record, staff believes that Columbine should be given consideration for a
term equal in length to its term under the original franchise, that is, fifteen
years. Second, nearly all industry analysts predict the imminent onset of active
competition in the cable TV industry. Staff believes that the strong potential
for competition mitigates against some of the reservations that may exist
concerning a relatively long fifteen -year term, in the sense that Columbine will
not likely be able to successfully operate in the new competitive environment if
it does not respond fully to evolving customer demand for new services. And
third, a fifteen -year term, as opposed to a shorter term, will likely reduce the
customer's monthly financial impact resulting from the future system upgrade.
In addition, staff has added the condition that if Columbine should sell its
cable system, the term of the franchise will become twelve years. The rationale
for this provision is that Columbine has an established record and has earned a
degree of community trust, and therefore should be considered for a fifteen -year
term; a new operator, however, would have to prove itself before .it would merit
a fifteen -year term.
' Discussion Of System Upgrade
The new franchise provides for a system upgrade that incorporates today's state-
of-the-art technology, while also providing the flexibility necessary to address
the future needs of the community. The system will be upgraded to 550 megahertz,
76 channels, using fiber optic trunking. Cost estimates provided for such an
upgrade, using today's technologies, have ranged from ten to fifteen million
dollars. This represents a substantial investment in the community's future.
In some neighboring communities, in which large, multiple system operators are
the service providers, this kind of an upgrade is being completed within two to
three years. Staff has reached agreement with Columbine to complete its upgrade
in four years from the effective date of the new franchise, or under certain
conditions, within a five and one-half year time frame, based primarily on two
factors. First, we are currently in an environment of extraordinary and rapid
technological change in the cable TV industry. There is a promise of an array
of new cable services and products, however, no one knows yet if there will be
sufficient demand for these services and products, and how many subscribers wi17
be able or willing to pay for them. The City's technical consultant has advised
staff that the system upgrade provided for in the franchise can be completed in
approximately two and one-half years. Staff has agreed to grant Columbine four
years to complete the upgrade because it believes that Columbine and its
customers will ultimately benefit if the,current volatile marketplace is given
a little more time to stabilize and if technologies and products that are
commercially feasible and desired by consumers are allowed to develop. Second,
' if competition for cable TV services emerges in the near future, as most expect
it will, Columbine may be motivated to complete the upgrade in a shorter time
period than the four year minimum. If, however, competition does not materialize
October 5, 1993
as expected, it will likely be due to a lack of consumer demand for products
offered at a desirable price or lack of product availability, in which case it
will probably not be detrimental to the City if the system upgrade is not '
completed as quickly.
Discussion of the Franchise Fee
Cable operators are required to pay franchising authorities a franchise fee for
use of municipal rights -of -ways and for the franchising authority's costs to
administer the cable TV franchise. The original franchise entered into between
the City and Columbine in 1978 provided for a franchise fee of 3% of subscriber
revenues. With the passage of the Cable Act of 1984, Congress raised the maximum
allowable franchise fee to 5% of gross revenues. Since the City did not have a
provision in the 1978 franchise agreement with Columbine that permitted the City
to raise the fee in the event of a change in federal law, the local fee has
remained at 3% of subscriber revenues for the entire fifteen -year term of the
franchise. The impact to the subscriber due to the increase in the franchise fee
from 3% to 5% will be approximately 430 per month. Staff believes that during
the fifteen years of the existing franchise the value of the use of the City's
rights -of -ways has increased, as have the costs to administer the existing
franchise. The new franchise is significantly more in depth than the current
one, and will also involve some additional time and costs to effectively
administer. The additional revenue will also be used to provide products and
services to meet Council's goal of enhanced communication with citizens. And,
if the City elects in the future to regulate cable TV rates, the City will incur
additional costs to administer the rate regulation process.
Extension of Existing Franchise
The current franchise with Columbine expires on November 6, 1993. In the event '
City Council decides, either on first reading at its October 5 meeting or on
second reading at its October 19 meeting, that the proposed franchise requires
substantive modifications and, therefore, does not adopt Ordinance No. 115, 1993,
adoption of Ordinance No. 116, 1993, extending the term of the franchise will be
necessary and is included for Council's consideration. Ordinance No. 116 will
extend the term of the franchise until March 15, 1994. This additional time will
be used by the City and Columbine to attempt to negotiate a new agreement taking
into consideration the concerns and objections raised by Council in not approving
the franchise agreement now before the Council. All other terms and conditions
of the existing franchise will remain the same except that the franchise fee will
increase as discussed above in this Agenda Item Summary.
Please note, that Ordinance No. 116 should be adopted on first reading at
Council's October 5 meeting, even if Council adopts on first reading Ordinance
No. 115. This is to ensure that if Council adopts Ordinance No. 115 on first
reading, but for any reason does not adopt it on second reading at the October
19 meeting, that Council can then consider Ordinance No. 116 on second reading
at the October 19 meeting in order to approve the extension of the term of the
existing franchise before it expires on November 6, 1993."
Cable Program Director Michael Gitter reported Columbine CableVision and Channel
4 had reached an agreement to continue carrying Channel 4 on the Columbine
system. He gave a brief background on the franchise renewal process, and spoke I
of the conditions and terms of the agreement. He expressed appreciation for
everyone involved in the preparation of the agreement.
300
October 5, 1993
Larry Rowland, representing the Cable TV Board, spoke of the Board's support of
' the agreement.
Dan Simons, Columbine CableVision, reported Columbine customers would not
experience any effect regarding negotiations with Channel 4, and stated he was
available for Council questions.
Gitter clarified the City would make the decision to approve an upgrade
extension, and stated the City of Fort Collins would no longer collect franchise
fees from customers outside the City of Fort Collins.
Councilmember Apt expressed concerns regarding remote control and converter box
fees.
Dan Simons stated remote control fees have been reduced and stated converter
charges are taken from the FCC's formulas. He spoke of the variety of converter
boxes on the market.
Councilmember Apt stated converter boxes were a nuisance and requested more
information regarding different kinds of boxes and information on converter
charges.
Councilmember Kneeland spoke of the amount of time allowed for system upgrades.
Larry Rowland
clarified the Board discussed the length of time for system
upgrades, and
noted it was the consensus of the Board that the overall
deal was
acceptable.
'
Councilmember
Horak questioned why staff did not go with the
technical
consultant's recommendation.
Gitter spoke
of the consultant's recommendation and stated with
changing
technology it
might be economically beneficial for Columbine and the
customers
it serves, to
wait for the environment to stabilize.
Dan Simons responded to Council questions on setting standards regarding gaining
entrances to yards. He clarified for Council that State standards for burying
cable lines is 4 inches.
Tom Duchene, River Oaks Cable Company, commented on the length of the agreement
stating the term of the agreement is a viable and important feature. He
clarified the engineering consultant estimated it would take approximately 2 1/2
years to build the system.
Councilmember Apt stated Council discussed originally a 10 or 12 year term and
stated he was surprised that the length of the term was raised to 15 years: He
asked if an escape clause could be added to the contract in the event that the
franchise were sold to allow the City to renegotiate.
Mr. Duchene stated the escape clause issue was discussed in the course of
negotiations but Columbine believed it would greatly impact its ability to sell
the system.
City Attorney Steve Roy clarified the Charter provides that the City could, at
any time, grant a franchise to another cable or entertainment system.
301
October 5, 1993
Councilmember Winokur asked if the upgrade would include the possibility of
putting converter boxes on poles to make it easier for customers.
Duchene spoke of the mandates Congress has placed on TV, hardware manufacturers.
'
and cable companies regarding converter box usability.
Councilmember Winokur questioned if revenues from increased franchise fees would
be identified by the City Manager and brought to Council to decide where
additional revenues should be spent.
City Manager Steve Burkett stated if the ordinance is approved the estimated
$150,000 would be included in the 1994 budget.
Assistant City Attorney John Duval outlined various circumstances in which the
franchise agreement could be revoked and stated provisions for those
circumstances are included in the agreement.
Councilmember Kneeland made a motion, seconded by Councilmember Winokur, to adopt
Ordinance No. 115, 1993 on First Reading.
Councilmember Horak spoke of the need to address the drop system.
Mayor Azari requested information on the drop system and the converter boxes
before second reading of the ordinance.
The vote on Councilmember Kneeland's motion was as follows: Yeas:
Councilmembers Apt, Azari, Horak, Janett, Kneeland and Winokur. Nays: None.
THE MOTION CARRIED.
,
Councilmember Horak made a motion, seconded by Councilmember Apt, to adopt
Ordinance No. 116, 1993 on First Reading. Yeas: Councilmembers Apt, Azari,
Horak, Janett, Kneeland and Winokur. Nays: None.
THE MOTION CARRIED.
Ordinance No. 120, 1993,
Approving an Intergovernmental Agreement
Between the City and the Downtown Development
Authority, Transferring Funds and Appropriating Additional
The following is staff's memorandum on this item.
"FINANCIAL IMPACT
This action would authorize the transfer of $450,000 to the Downtown Development
Authority Fund for the facade renovation and stabilization of the Linden Hotel
and Salvation Army buildings in the Old Town Historic District. Funding for this
project will be accomplished through a transfer from existing appropriations in
the Capital Projects Fund for Historic Preservation, together with additional
appropriations from reserves in the Sales and Use Tax Fund and an advance from .
the Street Oversizing Fund.
October 5, 1993
EXECUTIVE SUMMARY
' The Linden Hotel and Salvation Army buildings are considered cornerstones to the
revitalization of the Old Town Historic District. The buildings are
deteriorating quickly. The obvious concern is that they may be lost if nothing
is done. The restoration of these buildings is beyond traditional redevelopment
strategies. A public -private partnership is needed and warranted to save these
historic structures. It is estimated that up to $450,000 in public financial
participation is required to restore and stabilize the facade of the structures.
Veldman Morgan Commercial, a local real estate firm, has submitted a proposal for
renovation of the Linden Hotel and Salvation Army buildings for office and retail
uses. The proposal appears to be the most promising one in the last decade and
includes both DDA and City participation in the facade renovation.
Public financial support for the project was considered by the City Council at
its May 25 and August 24 work sessions. Council direction was to proceed with
the preparation of necessary legislation for public comment and Council
consideration.
Section I of the attached Ordinance (see Exhibit 1) authorizes the Mayor to enter
into an agreement with the DDA, whereby the City would transfer to the DDA the
funds needed to pay for the facade improvements and the DDA acquire an ownership
interest in the facades. Sections 2, 3 and 4 of the Ordinance appropriate these
funds.
BACKGROUND:
The Linden Hotel was one of Fort Collins' earliest business developments, having
been constructed in 1882. The adjacent Salvation Army building was constructed
in 1889. Both buildings have received National Register Landmark designation and
are considered cornerstones to the revitalization of the Old Town Historic
District. The Downtown Plan states that the redevelopment of the Linden Hotel
is critical to the continued revitalization of the Downtown area. Resolution 91-
46 (see Exhibit 2), which was passed by Council in 1991, includes as its first
priority for the downtown, the reintegration of the Poudre River into the fabric
of downtown with the first step toward achieving this priority being the
redevelopment of the Linden Hotel.
Current Building Condition
The Linden Hotel and Salvation Army buildings have been vacant since 1984.
During the intervening years, several developers have proposed plans for
renovation, but none has proved economically feasible. The buildings have
continued to deteriorate during this period of vacancy, and the interiors are now
open to rain and snow melt, significantly threatening the structural integrity
of both buildings (see Exhibit 3). Furthermore, since the buildings are a haven
for transients, the risk'of fire loss is high. The bottom line is that within
one or two more winters there may be nothing left to renovate or restore.
The City's Landmark Preservation Commission (LPC), Downtown Development Authority
' (DDA), and City staff believe that the Linden Hotel and Salvation Army buildings
303
October 5, 1993
are in serious jeopardy and saving them is not within the financial abilities of
the private sector alone. The LPC, DDA and City staff believes a public/private I
partnership is needed and warranted to save these historic structures.
Public Financial Support
Resolution 90-178 (see Exhibit 4), authorized the City Manager and the Downtown
Development Authority to develop a priorities list for downtown development and
to proceed with implementation of these priorities including considering a wide
array of financing tools. Resolution 91-46 (see Exhibit 2), which was passed in
March 1991, includes as its first priority, the reintegration of the Poudre River
with the first step being the redevelopment of the Linden Block.
After lengthy discussions between the Downtown Development Authority, Landmark
Preservation Commission, and City staff, the recommendation is that Council
commit the necessary funds now to help save the Linden Hotel and Salvation Army
buildings. Staff estimates that up to $450,000 will be required ($350,000 for
the Linden; and, $100,000 for the Salvation Army building) to make redevelopment
possible.
This proposal was considered by the City Council at its May 25 and August 24 work
sessions. The direction from City Council was to proceed with preparation and
introduction of the necessary ordinances and resolutions for public review and
consideration.
The recommended sources of funding for facade renovation and stabilization are
as follows:
$100,000 - Capital Project Fund for Historic Preservation '
$300,000 - Downtown Development Authority funds (through an advance
from the Street Oversizing Fund reserves)
50.00 - Sales and Use Tax Fund reserves
$450,000 TOTAL
Section 1 of the proposed Ordinance authorizes the Mayor to enter into an
agreement with the Downtown Development Authority to advance the City funds
needed to pay for the facade improvements and stabilization associated with the
redevelopment of the Linden Hotel and Salvation Army buildings. It is intended
that the $300,000 advanced from the Street Oversizing Fund reserves would be
repaid by the DDA. Section 2 of the Ordinance appropriates these funds.
The DDA will act as the City's agent in disbursing funds to the Developer once
the renovation is completed. The disbursement of the funds will be subject to
the review and approval of the City's Financial Officer. Public participation
in the Linden Hotel and Salvation Army development requires that (1) an agreement
be reached between the DDA and the Developer, since the DDA will take ownership
of the renovated facades, and, (2) an intergovernmental agreement be executed
between the DDA and City to provide for the advance of funds to the DDA and the
repayment of a stipulated portion of those funds.
The agreement between the DDA and the Developer of the project would be similar
to the agreements used for other DDA facade projects (e.g. Stone Lion Bookstore), I
including:
October 5, 1993
1.
The DDA would take passive ownership of the facade and an easement
for a minimum period of 30 years to provide access to and support
for the.facade.
2.
Facade improvements would require approval by the Landmark
Preservation Commission.
3.
The project architect would need to certify the actual cost of the
facade improvements after completion of the project. This number
would determine the actual level of public participation (up to a
maximum of $450,000).
4.
Public monies would be provided in the form of a reimbursement and
would be paid only after a certificate of occupancy has been issued
for the Linden Hotel and the facade renovation of the Salvation Army
building is completed.
5.
No alterations to facades would be permitted without DDA and LPC
approval.
6.
The facade must be maintained by the property owner.
7.
The property owner must provide adequate insurance and
indemnification.
8.
The City must be designated as the successor entity to the DDA.
9.
Prior to reimbursement, the Developer will certify a value for the
'
project (at the time the Salvation Army building is completed) of no
less than $1.425 million.
The agreement between the City and the DDA would provide as follows:
1. The DDA would receive a $300,000 advance of funds from the City's
Street Oversizing Fund reserves which would be repayable over ten
years at an annual interest ranging from 3.5 to 5.5 percent, subject
to annual appropriation. It is anticipated that the annual cost to
the DDA would average approximately $38,900.
2. In addition to the advance from the Street Oversizing Fund reserves,
the City would transfer to the DDA an additional $100,000 drawn from
the Capital Projects Fund for Historic Preservation and $50,000 from
the Sales and Use Tax Fund reserves.
3. The DDA would utilize all of these funds to pay for the
stabilization and renovation of the facades of the Linden Hotel and
Salvation Army buildings and to acquire an ownership interest in
those facades.
It should be noted that the City has applied for a grant from the Colorado
Historical Society's State Historical Fund in the amount of $100,000 for the
facade renovation and stabilization of the Linden Hotel. The Society's decision
on the grant will be made in mid -November. The funds should be available four
to eight weeks later. If successful, the grant could reduce the City's and/or
Downtown Development Authority's financial contribution to the project.
OR
October 5, 1993
Veldman Morgan Proposal
The Veldman Morgan proposal (see Exhibit 5) appears to be the most promising one '
in the last decade. The proposal is to renovate the Linden Hotel, occupying the
third floor of the building for its offices, and leasing or selling the balance
of the building to other commercial firms. Nature's Own Imagination, currently
in Old Town, would double in size and occupy the ground floor of the Linden
Hotel. Rehabilitation of the Linden Hotel is planned to begin next February and
be completed in the fall of 1994. The Veldman Morgan proposal also includes the
rehabilitation of the facade of the adjoining Salvation Army building.
Preliminary plans are to use the Salvation Army building as an entertainment
facility. Full renovation of the Salvation Army building is expected to occur
after the renovation of the Linden Hotel is completed. However, the facade
renovation for both buildings will occur simultaneously.
Facade renovation includes exterior demolition, stabilization, restoration and
replacement. This work includes strip finish, masonry repair, repair or
replacement of exterior sheet metal, reroofing, woodwork, woodwork replacement,
window and oriel refurbishment, storefronts and exterior door replacement,
reinforcement and repair to the wall at the west corner of the Walnut Annex and
painting of all exterior wood trim, storefronts, and sheet metal. The
stabilization elements of the proposal are typical and customary components of
a facade renovation.
The cost of facade renovation and stabilization for the two buildings is
estimated at $450,000. The total construction cost for the Linden alone is
$2,004,100. Sinnett Builders Inc. will be the general contractor. This company
has extensive construction expertise including many renovations and historic
restorations. All work will comply with the City's Design Guidelines and '
Secretary of Interior Standards for Historic Rehabilitation, including approval
of the Landmark Preservation Commission of the facade design.
Although the Veldman Morgan proposal has served as the catalyst for the financing
request which is being presented to the Council, the ordinance authorizing the
City/DDA agreement and the appropriation of funds is not specifically tied to
this particular proposal. If, by chance, the Veldman Morgan proposal would be
withdrawn, the funds would remain available to the DDA for expenditure in working
with another developer under the same terms and conditions.
Analysis of Public Involvement
According to the Downtown Development Authority, the financial return to the
public for its investment in this project will be realized through increased
property and sales taxes. Conservatively, the improved properties should
generate $40,000 in total property taxes annually. Net annual sales tax
generated on fifty percent of the retail space should exceed $20,000. Given
these numbers, the total public investment would be recaptured in 7.5 years.
Redevelopment of the Linden and Salvation Army buildings will also affect the
economic performance of the surrounding area. It is impossible to estimate what
that impact may be but it should be positive. Redeveloping these buildings will
make surrounding properties/improvements more valuable and shoppers will be
attracted beyond Old Town Square into the rest of the downtown historic district. ,
This should result in increased property values and increased retail sales.
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October 5, 1993
However, evaluating the public benefit of City/DDA participation in the
redevelopment of these structures solely on the basis of dollars and cents is to
ignore the value of the non -monetary benefits which accrue to the community
through their restoration. Non -monetary benefits include:
Restoring these buildings contributes to the vitality (including economic)
of the entire central business district. A strong, healthy, and
interesting downtown generates community pride, gives character to the
whole city, and establishes a positive identity which distinguishes Fort
Collins from other cities.
Restoring these buildings begins the process of moving toward the Poudre
River and integrating it into the community as a valuable natural asset.
Restoring these buildings is to recycle them, at least doubling their
useful life and at the same time preserving other resources.
Restoring these buildings amounts to infill development and provides
usable business space without encroaching on surrounding farmlands.
Finally, restoring these buildings helps to build bridges between the
past, the present, and the future. Saving the buildings demonstrates that
the City of Fort Collins places value in and respect for its roots and its
history. It helps to ground this generation to a tangible past.
Demonstrating this generation's respect for its history and tradition will
invest future generations with a similar respect and appreciation.
Pedestrian -Way Improvements
After lengthy discussions with the developer, staff is recommending that the
pedestrian -way improvements associated with the development be handled
independently of the facade and stabilization request.
When Council considered GID #1 improvement priorities last year, it placed
certain other improvements higher than the Linden/Walnut improvements although
they were considered a "first tier" priority (see Exhibit 6). A major reason
that the Linden/Walnut improvements were not a higher priority was the absence
of a firm redevelopment proposal for the Linden Hotel. That criterion has now
been met. Doing pedestrian -way improvements at the same time as the Linden Hotel
and Salvation Army buildings are renovated makes sense both in terms of
construction costs and reducing unnecessary disruption to area businesses.
In the next 2-3 months, the City's Planning staff will conduct a public outreach
effort to contact area property owners and downtown interests in regard to the
priority associated with the Linden/Walnut improvements relative to other
potential downtown projects. Also, staff will develop more detailed plans, cost
estimates and phasing alternatives. This information will be presented to City
Council in November/December for review and decision.
Other Public Review
The Landmark Preservation Commission reviewed the proposal to use $100,000 of
the Historic Preservation Funds for the renovation of the Linden Hotel at its
April 21 meeting. The Commission unanimously recommended to support the project
(see Exhibit 7).
307
October 5, 1993
The Downtown Business Association has endorsed the use of City resources
necessary to ensure the redevelopment of the Linden Hotel (see Exhibit 8).
The Downtown Development Authority agreed by approval of Resolution 93-14 (see '
Exhibit 9) to participate in this project up to $300,000. The DDA has also made
recommendations to City Council to appropriate the necessary funds to make this
project succeed and to proceed with pedestrian -way improvements at the same time
as the Linden Hotel and Salvation Army buildings are renovated."
Director of Community Planning and Environmental Services Greg Byrne gave a brief
introduction and slide presentation showing the deterioration of the Linden
Hotel. He spoke of project funding.
Steve Slezak, Downtown Development Authority Chairperson, encouraged Council to
support the proposal and stated restoration of the Linden Hotel conforms to the
Downtown Plan policies.
Jennifer Carpenter, Landmark Preservation Commission Chairperson, urged Council
to support the Ordinance and spoke of the importance of restoring old buildings.
Councilmember Horak stated the public needs to be assured that funds would be
used only for facade renovation.
Byrne reported a detailed line item list would be included between the DDA and
the developer and spoke of how the project would be monitored. He clarified if
circumstances changed requiring a significant change to either agreement, staff
would come before Council and request amendments to the Ordinance.
City Attorney Steve Roy stated the Ordinance approves the agreement between the I
City and the DDA and concerns regarding any terms or conditions of the agreement
should be addressed between first and second reading.
Director of Finance Alan Krcmarik clarified funds would be appropriated into a
Capital item within the operating budget, and funds would be reappropriated as
part of the 1994 budget.
Councilmember Kneeland asked why the Downtown Development Authority would accept
passive ownership since they are paying for the facade.
Lucia Liley, Attorney representing the Downtown Development Authority, spoke of
the provisions which would allow the facade to revert back to the current owner.
She clarified no alterations could be done during the 30 year term unless
approved by the Downtown Development Authority and the Landmark Preservation
Commission.
Byrne added the building is a local landmark under the City's ordinances and
exterior alterations of the building must come before the Landmark Preservation.
Commission.
Councilmember Winokur questioned if the City's ownership would affect the tax
status of any portion of the building.
Downtown Development Authority Director Chip Steiner noted he would supply I
Council with information regarding property taxes before second reading of the
Ordinance.
01.1
October 5, 1993
1
City Manager Steve Burkett suggested additional information could be outlined in
the Ordinance before second reading specifying cost estimates.
' Councilmember Apt spoke in support of the renovation of the building and
questioned how long it would take to start generating revenue and recovering
costs.
Steiner estimated property taxes would decline approximately 12 months after the
project is completed which is estimated at the fall of 1994.
Dave Veldman, developer, spoke of the redevelopment of the Salvation Army
Building.
Councilmember Horak made a motion, seconded by Councilmember Apt, to adopt
Ordinance No. 120, 1993 amending Section 1 c. (3) to read after the 1st comma as
follows: ", and be recertified by an independent architect, and the amount so
independently certified will determine the actual amount to be paid to the
developer by the ODA;".
City Manager Steve Burkett asked if an "independent architect", could be an
employee of the City.
Councilmember Horak stated it would be acceptable for City employee to be the
independent architect.
Dave Veldman, developer, supported the motion and outlined the process.
Rich Kerrs, 3019 Placer Court, stated he supported the project and expressed
' concerns regarding leasing the space once it is completed.
Chris Alexander, managing partner of Natures Own Imagination, supported the
motion.
Bill Washburn, 718 Mathews, urged Council to support the motion and spoke of the
need to preserve the history of the downtown area.
Jacques Rieux, owner of the Stone Lion Bookstore, spoke in support of the motion.
Karen McWilliams, President.of the Fort Collins Historical Society, stated the
board encouraged Council to support the Ordinance.
John Arnolfo, President of the Downtown Business Association, stated the Downtown
Business Association supported the project and urged Council to adopt the
Ordinance.
Councilmember Horak spoke of the funding issues and reported on the process
involved in dispersing the funds.
Councilmember Kneeland spoke in support of the Ordinance.
Councilmember Janett spoke in support of the motion stating it was a great
benefit to Old Town. She spoke of the importance in making a public/private
' partnership work.
309
October 5, 1993
Councilmember Apt supported the motion and stated he believed the opportunities
outweighed the risks. '
Mayor Azari noted when the item is presented for second reading, an itemized list
of line items would be attached. She stated tax information would also be
available on the public facade.
The vote on Councilmember Horak's motion was as follows: Yeas: Councilmembers
Apt, Azari, Horak, Janett, Kneeland and Winokur. Nays: None.
THE MOTION CARRIED.
Ordinance No. 117, 1993,
Authorizing the Disposition of Certain Real
Property Known as the Cunningham Corner Barn Adopted
The following is staff's memorandum on this item.
"EXECUTIVE SUMMARY
Council adopted Resolution 93-103 on July 6 which determined that it was in the
best interest of the citizens of Fort Collins to move the Cunningham Corner Barn
(the "Barn") to private property, so as to ensure its preservation, and that the
relocation of the Barn would be funded from the Historic Preservation Account
within the Capital Projects Fund. Acceptable bids for the move and the
foundation have been received for a total cost of $16,450. There may be some
minimal additional cost for raising power lines or traffic signals. The expense '
to the Historic Preservation Account is not expected to exceed $20,000. The City
has also applied for grant money from the State Historic Preservation Fund that
could be used for the relocation. Adequate money was appropriated in the 1993
Budget for this expense.
Resolution 93-103 specified that: 1) the Barn be relocated to private property
within the Urban Growth Area; 2) an RFP be issued to identify those parties
interested in obtaining the Barn for private use and to select an appropriate
site for the Barn; and 3) the relocation of the Barn be funded from the Historic
Preservation Account within the Capital Projects Fund. The RFP was issued and
the committee reviewing the proposals rated the one submitted by Doug and Patti
Leidholt as the best. Adoption of the Ordinance authorizes the relocation of the
Cunningham Corner Barn to private property owned by the Leidholts.
BACKGROUND:
The Cunningham Corner Barn is situated at the intersection of Shields Street and
Horsetooth Road, a property acquired by the City in lieu of the foreclosure of
an SID lien.
The Landmark Preservation Commission included the barn in the "Fort Collins
Survey of Historic Places, 1992" and told staff it was concerned about finding
options for the barn's restoration. In May of 1992, the City issued a Request
for Proposal (RFP) for the removal and restoration or demolition of the barn.
It was hoped that a reasonable offer would be presented where the barn would be '
moved to a location within the City limits and restored for personal or public
310
October 5, 1993
use. Only two bids were received for restoration of the barn. One was rejected
because the barn was to be dismantled and stored on private property until a
suitable location was purchased and the other would have moved the barn to a site
outside the City limits at a cost to the City of more than $30,000.
Another RFP, this time for the sale of the entire tract plus the barn, was sent
out in August. Two bids were received. Both were rejected because the amounts
offered ($35,000 and $30,000) were far below the appraised value and the special
assessment debt on the property. Only one bid included restoration of the barn.
In February of 1993 staff rejected an offer of $102,500 for the property and in
May an offer of $75,000 because of the low amount. The lower bid included
restoration and use of the barn.
On July 20, 1993, the Council adopted Ordinance 79, 1993, which approved the sale
of the Cunningham Corner property to Shields Street Corporation. A condition of
that sale was the removal of the Barn within sixty days of closing. The options
considered by the Council were: 1) Moving the Barn to City property for
restoration and public use; 2) Moving the Barn to private property for
restoration and private use; and 3) Demolition of the Barn. The Council
approved Resolution 93-103 which directed staff to issue an RFP to find an
appropriate home for the Barn on private property and authorized the expenditure
of up to $20,000 for the relocation.
Sumnary of Proposals
Three offers were presented and rated by a committee that included Ruth
Weatherford of the Landmark Preservation Commission. Doug and Patti Leidholt
were determined to have the best proposal. Their site is 114 mile south of the
present location and the Barn will be visible from Shields Street. The
Leidholts' intended use is:
A barn for horses and hay storage and as a showplace for 1920's
agriculture. Our (the Leidholts) intention is to use the front half of
the barn facing Shields as a showplace with the barn as it was in the
1920's and finding old agriculture implements for people to see.
Landmark Preservation Commission
The Landmark Preservation Commission discussed the final disposition of the Barn
at several meetings. A letter from the Commission is included as part of this
summary. The Commission submitted grant applications which, if accepted, should
provide five thousand dollars for the relocation.
Cost of the Move
Acceptable bids for the move and a foundation have been received for a total cost
of $16,450. There may be some minimal additional expense for raising power lines
or traffic signals. The total expenditure is not expected to exceed $20,000.
Adequate money was appropriated in 1993 in the Historic Preservation Account for
this expense.
I
Options
If the Council does not adopt this Ordinance, there are three options available:
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October 5, 1993
1) Award the Barn relocation to another one of the bidders. Approximate
cost is likely to be higher than the $16,450 bid for the Leidholt move because
the Barn would need to be moved a greater distance. '
2) Move the Barn to a City -owned property and restore and renovate it
for public use. Approximate cost is $80,000 which does not include ongoing
operation and maintenance expense. There may be grant monies available to the
City for the relocation and restoration but the only City funding source is the
Historic Preservation Account which has current balance of $160,000.
3) Demolish the Barn and remove the remains from the site. Approximate
cost of $8,000. This option is contrary to the recommendations of the Landmark
Preservation Commission which believes the Barn to be significant historic value.
Financial Policy Analyst Susanne Edminster gave a brief presentation on this
item.
Councilmember Winokur made a motion, seconded by Councilmember Apt, to adopt
Ordinance No. 117, 1993 on First Reading.
Jennifer Carpenter, Landmark Preservation Commission Chairperson, stated the
Landmark Preservation Commission wanted to wait until they heard from the State
regarding the grant money before funds would be expended. She clarified the use
of historic funds for this purpose was consistent with the Historic Preservation
Plan.
City Attorney Steve Roy stated he could include language in the agreement to
allow for provisions in the event the conditions of the agreement are not met '
during the term.
Edminster spoke of the agreement's terms and time limitations.
The vote on Councilmember Winokur's motion was as follows: Yeas: Councilmembers
Apt, Azari, Horak, Janett, Kneeland and Winokur. Nays: None.
THE MOTION CARRIED.
Items Pertaining to the Sale of Colorado
Land Source, Ltd. of Real Property Described
The following is staff's memorandum on this item.
'FINANCIAL IMPACT
The real property and tax certificates were acquired by the City in satisfaction
of City liens for special assessments. A breakdown of the application of the
proceeds for the proposed sale is included in the body of this agenda item
summary.
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October 5, 1993
EXECUTIVE SUMMARY
' A. Second Reading of Ordinance No. 102, 1993, Authorizing the Sale to
Colorado Land Source, Ltd. of Real Property Described as Tract A of the
Fairbrooke Special Improvement District.
B. First Reading of Ordinance No. 118, 1993, Authorizing the Sale to Colorado
Land Source, Ltd. of Real Property Described as Tract A of the Fairbrooke
SID and Tax Sale Certificates of Purchase for Lots I Through 25,
Inclusive, Block 1, and Lots I Through 16, Inclusive, Block 2, Brittany
Knolls PUD, First Filing.
On September 7, 1993, the Counci 1 adopted Ordinance No. 102, 1993, which provided
for the sale of Tract A of the Fairbrooke SID ("Tract A") to Colorado Land
Source, Ltd. with the stipulation that the sales agreement not contain any
contingency based on approval of land use by the Planning and Zoning Board. In
response to this new stipulation, Colorado Land Source, Ltd. submitted a new
sales agreement. The new agreement eliminates the Planning and Zoning Board
contingency for the sale of Tract A and includes the purchase of tax certificates
held by the City on forty-one lots in the Brittany Knolls PUD. Since the revised
agreement is substantively different from the original and because the amount
offered for the tax certificates is less than their face value, it is necessary
for the Council to adopt a new ordinance that authorizes the sale of Tract A and
the tax certificates of purchase.
BACKGROUND:
Fairbrooke SID #79 was created in 1983 to provide infrastructure improvement for
a 100 acre single-family residential development. Sale of homes did not occur
as anticipated and the developer was not able to make timely payment of -
assessments on Tracts A, D, G & H. Tax certificates were issued to the City on
those parcels and the City obtained treasurer's deeds to them in 1992. The City
offered Tract A for sale in April and the only bid received was less than
appraised value and was rejected. This offer of $300,000 for 18.6 acres (or
$16,129/ac) is equal to the appraised value of the land.
The tax certificates are for special assessments due for the
Province towne/Portner SID #81 and South Lemay SID #86. They are held on forty-
one platted single-family residential lots owned by DCB Investments of Dallas,
Texas. The City approached the owner at the beginning of this year in an attempt
to negotiate a deed in lieu of foreclosure. Difficulties in communication have
been complicated by the fact that a bank in Texas also holds a lien on the
property. A deed in lieu of foreclosure can only be obtained if all junior
lienholders agree -to the transaction. Negotiations with the owner and the
lienholder are at an impasse and the only routes available for the City to obtain
title to the property are through a treasurer's deed application or judicial
foreclosure.
Offer from Colorado Land Source, Ltd.
Tract A
I
Colorado Land Source, Ltd. intends to develop Tract A as single-family detached
residential homes with a density of not less than four (4) units per acre. The
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October 5, 1993
offering price of $300,000 is equal to the appraised value of the land. Closing
will take place as soon as the City can convey marketable title which is
estimated to be July of 1994. This depends on completion of the quiet title '
action and expiration of a six-month time period to satisfy title requirements.
The following is an itemization of the remaining assessment lien and City costs
on Tract A:
Assessment Lien:
Tract A
Principal $296,284
Interest (to 611194) 185,123
Total $481,407
Costs:
General Taxes 35,582
Title Policy and
other 1,825
Total $ 37,407
Total A11 Costs: $518.814
In order to evaluate the offer, it is important to know what the sales price will
provide the City in terms of debt payment. The following chart illustrates the
per acre sales price needed to pay all costs or principal and interest only '
versus the appraised per acre value of the land.
Price per Acre
To recover all costs: $ 27,893
To recover P & 1: 25,882
Per appraisal: 16,129
Current offer: $ 16,129
Net offer: $ 15,322
(After payment of real estate commission.)
Contingencies
The sale of Tract A is subject to four contingencies: 1) the City's completion
of the quiet title action and ability to convey marketable title to the
purchaser; 2) the approval by City Council of the agreement for sale; 3) the
purchaser securing a first purchase money mortgage loan within ninety days after
Council approves the agreement for sale; and 4) the City and the purchaser
closing on the sale of the tax certificates.
The City is also required to pay a real estate commission of $15,000 at the time
of closing. This puts the net payment to the City at $15,322/ac.
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October 5, 1993
Tax Certificates of Purchase
In November of 1989, forty-one lots in the Brittany Knolls PUD (see attached map)
' were offered for sale at the Larimer County Treasurer's annual tax sale. No
private investor purchased any of the certificates and so they were issued to the
City. These certificates repassessments due in the
resent special
Provincetowne/Portner SID #81 and South Lemay SID #86. The City also purchased
tax certificates for general taxes on thirty of these lots to avoid having to
Payoff private investors. Unfortunately, the County did not sell the genera) tax
certificates and the special assessment certificates together, so the City was
unable to obtain the general tax certificates for all forty-one lots.
Summary of Outstanding Debt on the Property
Principal Outstanding on the Property $176 256
Interest Paid to 1211193 126,218
General Tax Certificates Purchased by the City 10,194
Weed and Rubbish Removal
4.737
Total $317,405
Face Value of Tax Certificates
(This includes principal, interest to the date
Of tax sale, plus investor's interest at 16Y
per year): .$412,385
Price per Acre
To recover all costs: $ 30,229
To recover P & I: 28,807
Per appraisal: 16,000
Current offer: $ 16,000
Net offer: 14,964
(The terms of the agreement provide that the City will pay the general tax
certificates held by private investors at a cost of $10,880. The offer received
by the City for the certificates is $168,000, which is equal to the appraised
value of the property. So, the net amount to the City would be $157,120.)
Analysis of Sale of Tax Certificates
PRO
I. City does not have to foreclose on the tax certificates. This saves time (6-
9 months) and the expense of the court action ($2,500 plus $11,700 of interest
which accrued at $13,000/mo). $14,200
2. City does not have to pay general taxes for 1993 and 1994
$12,500
3. City does not have to expend staff time marketing the property.
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October 5, 1993
CON
1. City does not have the opportunity to market the property. Sale of property '
will likely generate more interest than sale of tax certificates since potential
buyers are reluctant to assume the legal risks often associated with purchasing
a tax certificate and the delays in acquiring title.
2. City's payment of tax certificates held by private investors is deducted
from the proceeds of the sale. $10,880 (City would have to pay this amount in
any event to obtain clear title to the property.)
OPTIONS
1. Approve. The Council can adopt Ordinance No. 1993 and approve the sale
of Tract A of Fairbrooke and the tax certificates of purchase on the DCB property
as the sales agreement is currently written.
2. Amend. The Council can adopt Ordinance No. 1993 with changes to the
agreement as currently written. Staff would then present the revised agreement
as currently written. Staff would then present the revised agreement to the
buyer. The buyer would have the opportunity to reject or counteroffer.
3. Reject. The Council can fail to pass or take no action on the Ordinance.
Staff would then continue to market Tract A and would begin foreclosure on the
tax certificates for the DCB property.
Notice Requirements/Obligation to Bondholders
As required in Section 23-111(c) of the Code, the City has published notice of '
the Council's intent to discuss the sale of these certificates and provided
written notice to interested parties. In order to insure that the sale does not
harm the interests of the bondholders, the Ordinance contains a provision whereby
the difference ($19,136) in the amount of principal due ($176,256) and the net
offer ($157,120) will be appropriated from the Reserve for Special Assessments
and placed in the bond fund. Since the interests of the bondholders will not be
harmed, there is no need to notify each bondholder of the proposed sale.
Recommendation
Several Councilmembers have raised the issue whether appraised value sales are
actually the best price obtainable for special assessment properties. The DCB
property is a good example of the difference between selling raw land versus
developed lots. The raw land is worth $16,000/ac and lots in the area are
selling for $28,000 each. A good estimate of development costs for the DCB
property is $300,000-400,000 for leveling land, building streets, extending
utility lines, and landscaping. Some time ago the Council Finance Committee
considered whether the City should enter the development business in an effort
to maximize the sales price of special assessment property. The answer was "no".
Given this direction staff believes that this is the best price obtainable for
the properties and recommends that Council approve the Ordinance."
Financial Policy Analyst Susanne Edminster gave a brief presentation on the item '
and outlined available options. She clarified for Council the Brittany Knolls
property was in the Poudre R-1 School District.
316
October 5, 1993
Edminster stated proceeds would be applied to the principal and spoke of the
' shortages in recouping the costs on the properties.
City Manager Steve Burkett spoke of the options associated with denying the
proposal.
Councilmember Kneeland suggested more information be provided regarding the
appraisal process.
City Attorney Steve Roy spoke of the options for accepting and/or rejecting the
Ordinance.
Mayor Azari stated because no motion was presented, discussion on the item was
closed.
NO ACTION TAKEN.
Items Revising Policies and Procedures
for the Sale of Special Improvement District Property
The following is staff's memorandum on this item.
"FINANCIAL IMPACT
Implementation of the revised policies may result in a decrease in the number of
buyers interested in purchasing foreclosed special assessment properties.
EXECUTIVE SUMMARY
A. Resolution 93-146 Amending the City of Fort Collins Sales Policy for
Property Acquired Through or in Lieu of Special Assessment Foreclosure
Processes (the "Sales Policy").
B. First Reading of Ordinance No. 119, 1993, Amending Section 23-111 of the
Code.
Adoption of the Ordinance would amend the City Code to authorize the City Manager
to approve the sale of real property that the City acquired through or in iieu
of the foreclosure of a special assessment lien. Currently, the City Council
must authorize such sales by ordinance.
Adoption of the Resolution would amend the Sales Policy so that the City would
not accept any sales contracts that include a specific contingency based on
approval of the Planning and Zoning Board for land use.
BACKGROUND:
The City has acquired or is in the process of acquiring a considerable amount of
real property in satisfaction of the City's liens for special assessments. The
gross acreage foreclosed is expected to be greater than 550. In May of 1992, the
Council adopted Resolution 92-91 which established policies for the reselling of
such property. After a year of experience in marketing this land, the City has
received input from realtors and developers regarding the process. One recurring
criticism is the time spent taking the sales agreement to the full Council and
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October 5, 1993
having to wait a month or more to finalize the sale. As a practical matter, it
is critical that the City be able to respond quickly to sales offers. Having to
wait for two readings of an ordinance is a deterrent to prospective buyers. '
Adoption of the Ordinance presented for Council's consideration would authorize
the City Manager to finalize the sale of special assessment property within the
guidelines set forth in the Sales Policy and would eliminate the one month delay
in presenting each sale for Council approval.
Council has also expressed concern about a perceived conflict of interest if the
Council has to "wear two hats" by first approving a contract for sale which has
a land use approval contingency and then hearing an appeal of a Planning and
Zoning decision on the proposed land use for the property. The Resolution
amending the Sales Policy would bar such contingencies from sales contracts.
Staff believes that adopting this policy would reduce the number of buyers for
special assessment properties because the buyer will perceive a greater risk in
purchasing property before there is acceptance of a proposed land use.
Options/Impacts
Ordinance No. 119, 1993
Adopt the Ordinance Amend the City Code to authorize the City Manager to
approve the sale of real property that the City acquired through or in lieu of
the foreclosure of special assessment liens.
Pros:
Streamlines the review process necessary to finalize sales agreements and allows
the City to move quickly to take advantage of favorable market conditions. I
Cons:
Removes the Council from direct involvement in the sales of special assessment
properties. The Council will remain involved by establishing the sales policies
that are the guidelines for the sales agreements.
Defeat or fail to adopt the Ordinance The Council would be required to approve
all special assessment property sales by ordinance.
Pros:
Maintains Council's direct involvement in the decision to sell special
improvement district properties.
Cons:
A.
Adds a month
or more to
the process
of accepting proposed sales
agreements.
B.
Prevents the
City from
responding
quickly to favorable market
conditions.
Resolution 93-146
Adopt the Resolution Amend the Sales Policy so that the City would not accept I
any sales contracts that include a specific contingency based on approval of land
use by the Planning and Zoning Board.
0U"
October 5, 1993
Pros:
' A. Provides a separation between the sales agreement and the land use
decision.
Cons:
A. Presents a greater risk to the proposed buyer and may reduce the number of
buyers willing to pay full price for the land.
B. Makes the City's sales contracts different from the rest of the
marketplace.
Defeat or fail to adopt the Resolution The sales agreement would allow
contingencies based on Planning and Zoning approval.
Pros:
A. Maintains the ability of a proposed buyer to ensure before the sales is
final that the desired land use is acceptable on the site.
B. Aligns City sales agreements with agreements customary in the market.
Cons:
A. Creates the potential of a situation where the Council is agreeing to
property sales contingent upon the actions of the Planning and Zoning Board which
' it appoints and from which it must hear appeals."
City Manager Steve Burkett gave a brief description on this item. He spoke of
a proposed change in the sales policy allowing staff to sell the property within
the guidelines of the policies adopted by Council. He stated the change would
speed up the process, making it more efficient and businesslike.
Councilmember Horak made a motion, seconded by Councilmember Winokur, to adopt
Resolution 93-146.
Councilmember Kneeland spoke of the intent of the Finance Committee.
Mayor Azari thanked the Finance Committee for their efforts.
The vote on Councilmember Horak's motion was as follows: Yeas: Councilmembers
Apt, Azari, Horak, Janett, Kneeland and Winokur. Nays: None.
THE MOTION CARRIED.
Mayor Azari clarified there was no recommendation by the Finance Committee on
Ordinance No. 119, 1993.
City Manager Steve Burkett stated adopting Ordinance No. 119, 1993 would allow
staff to sell the property more efficiently under the guidelines adopted by
Council.
' City Manager Steve Burkett clarified previous Council adopted policies would be
used.
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October 5, 1993
Councilmember Winokur stated citizen and board and commission input would be left
out of the decision -making process if the Ordinance were adopted.
Councilmember Kneeland stated she wanted to review the options available and the
role boards and commissions would possess under the proposed option. She
clarified the Finance Committee did not have adequate time to review the options
and requested the item be brought back to the Finance Committee for further
review.
Mayor Azari suggested no action be taken on Ordinance No. 119; 1993 and to bring
it back to the Finance Committee for further discussion and recommendation.
Councilmember Winokur clarified Council would receive financial policy
recommendations.
NO ACTION TAKEN.
Items Related to the Purchase of 173 Acres
of Land for a Southwest Community Park/Youth
Sports Complex and for Public Natural Areas, Adopted
The following is staff's memorandum on this item.
"FINANCIAL IMPACT
The 173 acre parcel is being offered for $1,425,000 which is $8,237 per acre.
Natural Resources share is $560,000, Parks and Recreation's share is $865,000.
Monies will be advanced from the Street Oversizing reserves (the portion funded
by General Fund transfers) to cover the Parks and Recreation share. The advance
from the Street Oversizing fund will be returned in 1996 when proceeds from the
dedicated 114 cent sales and use tax levy are available. In addition to the
advance of $865,000, Choices 95 will pay the same rate of interest that the funds
would have earned during the two year period. (This is not expected to exceed
7Y per year, or $121,100 for the two-year period.) The Choices 95 estimated cost
for this project is $1,440,000. This offers a savings to the total Choices 95
funding plan of $453,900. This is a use of reserves to acquire an asset,
therefore, there are no immediate effects due to Section 20 of Article X
(Amendment 1).
EXECUTIVE SUMMARY
A. Resolution 93-147 Authorizing the Purchase of 173 Acres of Land for a Site
for a Southwest Community Park/Youth Sports Complex, and for Public
Natural Areas.
B. First Reading of Ordinance No. 121, 1993, Advancing Funds in the Street
Oversizing Fund to the Capital Projects Fund for the Purchase of the
Southwest Community Park/Youth Sports Complex.
1
Staff has negotiated a purchase and sale agreement to acquire 173 acres of land
for $1,425,000. Of this total, 70 acres would be acquired for public natural
areas for $560,000 using funds appropriated in the Capital Projects Fund from the I
proceeds of the 114 cent Natural Areas Sales Tax. Ongoing maintenance, estimated
at $2,628/year, would also be funded from this source.
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October 5, 1993
The remaining 103 acres would be acquired as the site for the Southwest Community
' Park/Youth Sports Complex for $865,000. The purchase would ultimately be paid
for by the proceeds of the Choices 95 Sales Tax. However, since the Choices 95
funding for the park site acquisition is not programmed until 1996, staff
proposes a two-year "loan" from the Street Oversizing Fund to complete the
acquisition now. Interest would be paid to the Street Oversizing Fund at the
same rate as would otherwise be earned on monies if they remained in the Street
Oversizing Fund. (Estimated at up to 7Y annually, or $121,100 for the two-year
period.)
The Choices 95 estimated cost for the Southwest Community Park/Youth Sports
Complex was $1,440,000. Acquisition of this parcel at this time offers a savings
of $453,900 to the total Choices 95 program:
Choices 95 Budgeted Amount $1,440,000
Cost of 103 Acres-865,000
Interest Costs-121,100
$ 453,900
Resolution 93-147 authorizes the purchase of 173 acres of land in southwest Fort
Collins; 103 acres for the.site for the future Southwest Community Park/Youth
Sports Complex and 70 acres as a public natural area. This acquisition furthers
the adopted goals and objectives of the Natural Areas Policy Plan and the Parks
and Recreation Master Plan.
Ordinance No. 121, 1993 advances funds from the Street Oversizing Fund to the
Capital Projects Fund and appropriates monies in the Capital Projects Fund to
' allow acquisition of the park site at this time. This transaction is a two-year
"loan" from the Street Oversizing Fund that would be repaid, with interest, when
the proceeds for this purpose from the Choices 95 program are received in 1996.
BACKGROUND:
Location. Staff has negotiated a purchase and sale agreement with David and Mary
Whitham to purchase 173 acres of undeveloped land in southwest Fort Collins
(attached map). The land includes approximately 103 acres of agricultural land
and 70 acres of natural area on the eastern face of the first hogback west of the
City. The land has been advertised for sale for some time and is adjacent to the
Quail Hollow and Quail Ridge developments. The lower agricultural land is
developable under the proposed RLP zoning (residential). The upper portion of
the parcel is developable under the Foothills Zone (residential).
Park Site. The Parks and Recreation Master Plan includes the future development
of a Southwest Community Park/Youth Sports Complex; funding for acquisition of
a 70 to 100 acre site was included among the capital projects to be funded
through the Choices 95 sales tax. Staff has evaluated 13 parcels of land that
would be large enough for this purpose and concluded that this site is the best
location for this park.
The Spring Creek Trail
would be extended through this site
to eventually link the
Fossil Creek Trail on
the Cathy Fromme Prairie, farther
to the south.
Natural Areas Site.
The Natural Areas Policy Plan
set an objective of
,
establishing a system
of publicly -owned natural areas to
protect the integrity
rYlal
October 5, 1993
of critical conservation sites, protect corridors, and preserve outstanding
examples of our diverse natural heritage and to provide opportunities for
educational and recreational programs. This 70-acre parcel is one of several I
that staff has been working to acquire to "block up" the eastern face of the
hogback adjacent to the Pine Ridge Open Space.
The area is one of the most significant natural areas in Fort Collins and
provides a high quality example of the foothills grassland and shrubland
ecological communities. The steep grassy hillside forms the eastern flank of the
first hogback where the foothills begins. The site is part of an important
movement corridor and winter concentration area for mule deer and is also used
by coyotes, foxes, and other mammals. It provides habitat for a rare plant, the
Bell's twinpod, and several rare butterflies and is used by bald eagles and other
birds of prey. In addition to its habitat value, the site forms part of the
scenic backdrop to the southern portion of the City.
Overland Trail Road Extension. The extension of Overland Trail Road is planned
to go through the property, approximately at the base of the natural area portion
of the site.
Board and Commission Review. The Natural Resources Board and Parks and
Recreation Board endorsed the natural area portion of the site as a high priority
acquisition site during June 1993. Both boards unanimously recommended
acquisition of the site during a joint meeting on September 15, 1993.
The Parks and Recreation Board reviewed the proposed park site acquisition on
September 22, 1993 and unanimously recommended that Council approve the
acquisition.
In the past, Council has supported the concept of pay as you go within the '
Choices 95 fund. This purchase presents a unique opportunity to leverage money
from two sources (Natural Areas Fund and Choices 95), buy a portion of land
uniquely suited to a community park and youth sports complex, and ultimately save
money. This opportunity would most likely be missed if we wait until 1996 when
the Choices 95 dollars are available as planned. This land would most likely be
sold prior to 1996 for other purposes."
Director of Cultural, Library and Recreational Services Mike Powers gave a
presentation on this item. He spoke of financing for the proposed project and
stated savings would be approximately $450,000.
Councilmember Apt requested clarification regarding the cost of annual park
maintenance.
Natural Resources Director Tom Shoemaker stated longterm maintenance is an
estimated $36 per acre annually for natural areas. He stated in the past Council
has directed staff to reserve funds from the proceeds of the 1/4 cent sales tax
to fund longterm maintenance for the natural areas.
Councilmember Horak made a motion, seconded by Councilmember Apt, to adopt
Resolution 93-147.
Finance Director Alan Krcmarik stated the source of repayment would be acquired '
from the revenue generated by the 1/4 cent sales tax for the Choices 95 projects.
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October 5, 1993
City Manager Steve Burkett stated the project is a community park therefore it
' would not be part of the parkland fund or fees. He spoke of the difference
between community parks and neighborhood parks.
Cultural, Library and Recreational Services Director Mike Powers spoke of the
options available for the park. He stated it could continue being farmed or it
could be operated as a natural area.
Valerie Favel, 2812 Calendar Court, spoke in support of the motion.
City Manager Steve Burkett spoke of the reasons for purchasing the property.
Councilmember Kneeland spoke in support of the motion and suggested citizens be
informed that the property will be used for a park and not an open space area.
City Manager Steve Burkett clarified the project would not jeopardize the
Eastside Park construction and noted the Eastside Park item would be on the next
agenda.
Councilmember Horak expressed concerns regarding how the sports complex would
coincide with the abutting natural area.
Councilmember Winokur stated it was important to make citizens aware from the
beginning that a youth sports complex will be built on the site.
The vote on Councilmember Horak's motion was as follows: Yeas: Councilmembers
Apt, Azari, Horak, Janett, Kneeland and Winokur. Nays: None.
' THE MOTION CARRIED.
Councilmember Kneeland made a motion, seconded by Councilmember Horak, to adopt
Ordinance No. 121 on First Reading. Yeas: Councilmembers Apt, Azari, Horak,
Janett, Kneeland and Winokur. Nays: None.
1f laTU14IBNlitl]aIH 144
Other Business
Councilmember Kneeland spoke of Governance Committee issues and requested a
worksession on the issues be held.
Mayor Azari stated a worksession has been scheduled so that Council can discuss
governance issues and processes.
323
October 5, 1993
Ad3ournment
The meeting adjourned at 12:50 a.m.
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324
Mayor