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HomeMy WebLinkAboutMINUTES-08/05/1986-Regular1 August 5, 1986 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, August 5, 1986, at 6:30 p.m. in the Council Chambers in the City of Fort Collins City Hall. Roll call was answered by the following Councilmembers: Estrada, Kirkpatrick, Liebler, Ohlson, Rutstein, and Stoner. (Secretary's Note: Councilmember Horak arrived at approximately 6:40 p.m.) Staff Members Present: Burkett, Huisjen, Krajicek Agenda Review: City Manager Bruce Lockhart, 2500 East Harmony Road, requested Item #10, Hearing and First Reading of Ordinance No. 112, 1986 Appropriating Funds to Replace Summitview Bridge, be removed 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 be "pulled" off the Consent Calendar and considered separately. Agenda items pulled from the Consent Calendar will be considered separately under Agenda Items #17 and #27, Pulled Consent Items, except items pulled by anyone in the audience or items that any member of the audience is present to discuss that were pulled be staff or Council. These items will be discussed immediately following the Consent Calendar. 4. On April 17, 1986, the Colorado legislature passed House Bill No. 1184. This new law makes changes to the Colorado Revised Statutes concerning special assessment districts. In order to take advantage of some of the new provisions in the bill, certain sections.of the Fort Collins Code, Article 16, need to be amended. This Ordinance, -1- rV 7. EI a August 5, 1986 which was adopted unanimously on First Reading on July 15, will make those amendments. During the review of the Street Design Criteria and Construction Standards, staff discovered a discrepancy between the 1981 Standards and Section 129 of the City Code relating to guarantee of sidewalks, driveways, curbs and gutters. This Ordinance, adopted unanimously on First Reading on July 15, amends the Code to conform to the one year guarantee in the standards. This Ordinance was adopted unanimously on First Reading on July 15 and appropriates $163,317 from the unobligated balance in the Capital Projects Fund to complete the construction of the Outdoor Pool Concession/Bathhouse. To date, $225,000 has been appropriated in the Capital Projects Fund for the Outdoor Pool Concession/Bathhouse and Chemical Storage ' project. Based on final design, the project estimated cost is $388,317. Therefore, an additional $163,317 is needed to proceed. This Ordinance was adopted unanimously on First Reading on July 15 and makes certain changes to better protect the commissioners and employees of the Airport Authority from civil liability. These changes would insure that any such liability would become the responsibility of the Cities of Fort Collins and Loveland. This ordinance is presented as the cumulative effort of the City Clerk's Office, City Attorney's Office, Police Department and Liquor Licensing Authority. The ordinance reduces points of conflict between the City Code and the Colorado Beer and Liquor Codes ands eliminates inconsistencies between these codes. There are no changes proposed to the annual license fees or occupation taxes associated with the issuance of beer and liquor licenses in the , City. -2- August 5, 1986 1 10. 11. 12. The City needs to appropriate $132,234 to match the $528,000 granted from the State Highway Department Special Bridge Fund for replacing the Summitview bridge over the Larimer-Weld Canal. Funds for the City's share are available from completed capital projects. This ordinance appropriates both the $132,234 contributed by the City, and the $528,000 grant from the State. This resolution authorizes the City Manager to approve a change order to increase the amount of street repair in the 1986 Street Rehabilitation Project. The change order for $94,256.45 would be added to the contract with Flatiron Paving Company to rehabilitate Stover Street from Parker and Stuart to Drake, and Constitution Avenue from Valley Forge to Drake. The bids for the 1986 rehabilitation project were well below the engineer's estimate. These savings will provide the funds to do the additional street work. Stover Street and Constitution Avenue were programmed for repair in 1987, but rehabilitating these streets a year earlier will allow the City to take advantage of good bid prices this year. The Capital Project Management Control System requires all change orders in excess of $50,000 to be approved by the City Council. A. Resolution 86-128 Authorizing the Execution of a First Supplemental Indenture of Trust and a First Amendment to Financing Agreement Relating to the City's Industrial Development Revenue Bonds, Series 1983, (Old Town Fort Collins Project I). B. Resolution 86-129 Authorizing the Execution of a First Supplemental Indenture of Trust and a First Amendment to Financing Agreement Relating to the City's Industrial Development Revenue Bonds, Series 1983, (Old Town Fort Collins Project II). In 1983, the City of Fort Collins authorized the issuance of Industrial Development Revenue Bonds for the Old Town Fort Collins Projects I & II in the total principal amount of $14,125,000. The Bonds are being administered by United Bank of Fort Collins as trustee for the City pursuant to the Indenture of Trust dated December 22, -3- 13. 14. 1161P August 5, 1986 1983. The developing partnerships, Old Town Partners I & II, are moving forward with plans to refund these bonds, and have requested this amendment to the Indenture of Trust in order to facilitate the refunding process. In 1961, the City of Fort Collins entered into an agreement with the Union Pacific Railroad Company, which covered an overhead power line on and across railroad right-of-way. The agreement was for portions of a line located west of North College Avenue, between the Poudre River and Hickory Street. This agreement expired in June 1986. Since the power line is still in use, the Light and Power Utility requires that the agreement be renewed. Union Pacific has prepared the Addendum which extends this agreement for a period of 10 years. There is a preparation fee of $100 and an annual consideration of $100 in conjunction with the renewal. The Utility will underground portions of this line as part of the overhead conversion program. This area will not be converted until sometime after 1987. A new underground crossing agreement will be required prior to the underground installation. to Various Boards and Commissions and Appointing Councilmembers to I Various Committee Assignments. Due to the resignation of Councilmember Jay April, vacancies exist as Board liaison/Council representative on the following: Cultural Resources Board Landmark Preservation Commission Natural Resources Advisory Board Quality of Life Commission Economic Development Subcommittee Poudre Fire Authority Councilmember Susan Kirkpatrick has agreed to assume most of the liaison and committee assignments previously filled by Councilmember April. Councilmember Liebler has requested to serve on the Economic Development Subcommittee. Councilmember Kirkpatrick will replace Councilmember Liebler on the Intergovernmental Committee. This Resolution formally makes these appointments. Vacancies currently exist on the Natural Resources Advisory Board and I the Library Board due to the resignation of Tod Schwartz and the appointment of Susan Kirkpatrick to City Council. 'City Council has reviewed the applications on file. -4- C August 5, 1986 ' In keeping with Council's policy, the recommendations for these appointments were announced at the July 15 City Council meeting. The appointments were tabled to August 5 to allow additional time for public input. The prospective appointees are as follows: Natural Resources Advisory Board - William Fischer, regular Patrick Reed, alternate Library Board - Catherine Fine, regular Kate Erslev, alternate 16. Routine Deeds and Easements. The following are routine easements which have been approved by the affected departments and legal staff: a. Easement from Rhoades, Inc. for the Prospect Street Bridge across Spring Creek, -located east of Timberline. Consideration: $300. b. Easement Dedication from Bruce E. Miller and Brian T. Soukup (Bridges PUD First Filing) for a permanent easement for utility and access purposes, needed to replace an existing easement that crosses another property. The dedication will now locate the - easement entirely on the developer's ground. Acceptance of this dedication will not make the City of Fort Collins responsible for maintaining the easement. Ordinances on Second Reading were read by title by Wanda Krajicek, City Clerk. Item #5. Item #6. Item #7. Item #8. Authority. Ordinances on First Reading were read by title by Wanda Krajicek, City Clerk. -5- August 5, 1986 Item #9. Item #10. Councilmember Rutstein made a motion, seconded by Councilmember Stoner, tc adopt and approve all items not removed from the Consent Calendar. Yeas: Councilmembers Estrada, Kirkpatrick, Liebler, Ohlson, Rutstein, and Stoner. Nays: None. THE MOTION CARRIED. Ordinance No. 112, 1986, Appropriating Funds to Replace Summitview Bridge Adopted on First Reading Following is staff's memorandum on this item: "Executive Summary The City needs to appropriate $132,234 to match the $528,000 granted from the State Highway Department Special Bridge Fund for replacing the Summitview bridge over the Larimer-Weld Canal. Funds for the City's share are available from completed capital projects. This ordinance appropriates both the $132,234 contributed by the City, and the $528,000 grant from the State. Background The existing bridge at Summitview and the Larimer-Weld Canal is in poor condition and requires replacement. This need has become particularly evident with the development of the Anheuser-Busch brewery, as the bridge is on the route connecting downtown Fort Collins with the A-B property. On July 2, the State granted $528,000 to the City which represents 80 percent of the estimated cost for replacing the bridge. The City has forty-five days to appropriate the remaining 20 .percent, or $132,234. Staff has identified available funds from completed capital projects which we recommend be transferred to this project as follows: Mountain Avenue & Walnut $ 5,447 Timberline Road Reconstruction 5,787 Minor Street Capital 21,000 South Lemay-Horsetooth 100,000 TOTAL $ 132,234 The savings available in the South:Lemay-Horsetooth project total $200,000. Staff had suggested to Council the possibility of using $120,000 from this amount to assist targeted industrial developments in street oversizing August 5, 1986 costs. The proposed appropriation for the Summitview bridge will reduce this amount to $100,000, but staff feels this amount should be adequate as we are already into August and no funds have been committed for industrial development to date. Staff is aware that City Council plans to consider the Economic Development Fund as a source of funding for the industrial assistance. Therefore, these funds may not be needed for industrial assistance. The bridge cost projections are based on the full arterial width, which is the classification for Summitview. The initial cost of the structure could be reduced by constructing only a two-lane bridge at present and widening the structure later. Staff does not recommend this option, however, because the matching funds would not be available for the widening to the full width, which could cost the City an additional $160,000 to $200,000 in the future. Staff recommends the construction of the full width bridge. The subject ordinance appropriates both (1) the $132,234 contributed by the City, and (2) the $528,000 granted by the State, and staff recommends adoption of the ordinance." (Secretary's Note: Councilmember Horak arrived at this point.) Councilmember Stoner made a motion, seconded by Councilmember Kirkpatrick, to adopt Ordinance No. 112, 1986 on First Reading. Bruce Lockhart, 2500 East Harmony Road, questioned where the funding was coming from for this project and why Anheuser-Busch was not paying for the bridge replacement. Interim Development Services Director Gary Diede explained that the Anheuser-Busch Master Agreement called for the City to build roads around. the perimeter of the site. This bridge in not on a perimeter road, but rather an access road to the site. He explained that the City was notified that there was State funding available for any bridges in poor shape and that the Summitview Bridge was the only one in the City that qualified for the funding. He added that the funds being appropriated were the City's matching funds of 20%. Gary Diede answered questions from Council about the scope of this project. Councilmember Rutstein expressed some concern about the traffic impact in this area, but indicated she would vote in favor of the Ordinance because the City is receiving funding from the State which may not be available in the future. Councilmember Stoner pointed out that the 10-year traffic circulation Pattern study done in 1981 showed that Timberline out to Summitview would ' be a four -lane bypass of the eastern portion of the City and that analysis was done prior to the Anheuser-Busch project. He,commended staff for taking advantage of the State funding. -7- 0 August 5, 1986 Councilmember Horak stated he could not support a four -lane bridge at this ' time. Councilmember Liebler stated she also could not support a four -lane bridge at this time and would prefer a two-lane bridge. Councilmember Estrada stated that studies have indicated that a four -lane bridge will be needed in the future and the City should take advantage of the State funding. Gary Diede explained the reasons for building a four -lane bridge rather than a two-lane bridge at this time. Mayor Ohlson stated he would support the ordinance, although he would prefer a two-lane bridge. The vote on Councilmember Stoner's motion to adopt Ordinance No. 112, 1986 on First Reading was as follows: Yeas: Councilmembers Estrada, Kirkpatrick, Ohlson, Rutstein, and Stoner. Nays: Councilmembers Horak and Liebler. II:IN01 [1111W.1:lif" Ordinance No. 102, 1986, Authorizing the ' Issuance of Special Assessment Bonds in the Principal Amount of $1,085,000 for the Arbor Plaza Special Improvement District No. 88 Adopted as Amended on Second Reading Following is staff's memorandum on this item: "The Ordinance was adopted on First Reading July 15 by a 7-0 vote. This bond ordinance provides for the issuance of $1,085,000 of Special Assessment Bonds for the Arbor Plaza Special Improvement District No. 88. The Ordinance has been amended to include provisions which were not available at First Reading. The bonds were marketed at a public offering on Monday, August 4. A motion will need to be made to amend the bond ordinance to allow the interest rates to be inserted. The interest rates will be read into the record." Councilmember Stoner made a motion, seconded by Councilmember Estrada, to adopt Ordinance No. 102, 1986 on Second Reading. Councilmember Stoner made a motion, seconded by Councilmember Estrada, to amend Ordinance No. 102, 1986 on Second Reading as described by staff. ' Stan Raine, bond counsel, answered questions from Council about the specifics of this item. In August 5, 1986 The vote on Councilmember Stoner's motion to amend Ordinance No. 102, 1986 on Second Reading was as follows: Yeas: Councilmembers Estrada, Horak, Kirkpatrick, Liebler, Ohlson, Rutstein, and Stoner. Nays: None. THE MOTION CARRIED. The vote on Councilmember Stoner's motion to adopt Ordinance No. 102, 1986 as amended on Second Reading was as follows: Yeas: Councilmembers Estrada, Horak, Kirkpatrick, Liebler, Ohlson, Rutstein, and Stoner. Nays: None. THE MOTION CARRIED. Resolution 86-120 Appointing Richard Shannon as the City's Representative on the Board of Following is staff's memorandum on this item: "On July 15 this item was rescheduled to this date. On September 1, 1981, Council appointed Bill D. Carnahan as the City's representative on the Board of Directors of the Platte River Power Authority to fill the unexpired term of Stan Case and reappointed Mr. Carnahan on December 18, 1984 with a term to expire on December 31, 1988. Mr. Carnahan has resigned his employment with the City of Fort Collins and has therefore resigned his position on the Board of Directors of Platte River Power Authority. This Resolution appoints Richard Shannon, the City's new Director of Utility Services, as the City's representative to the PRPA Board for the remainder of the unexpired term of Bill Carnahan. He will serve on the Board along with the Mayor's appointed representative Barbara Rutstein." Councilmember Estrada made a motion, seconded by Councilmember Rutstein, to adopt Resolution 86-120. Councilmember Horak stated he did not feel it was necessary to appoint the Director of Utility Services to this position and suggested Council consider appointing another Councilmember or member of the community to the Board. Councilmember Estrada stated he felt having a Councilmember and a staff member on the Board provided a good balance. August 5, 1986 The vote on Councilmember Estrada's motion to adopt Resolution 86-120 was as follows: Yeas: Councilmembers Estrada, Horak, Kirkpatrick, Liebler, Ohlson, Rutstein, and Stoner. Nays: None. THE MOTION CARRIED. Resolution 86-121 Appointing a Representative to the Larimer County Community Action Board. Tabled to August 19 Following is staff's memorandum on this item: "On July 15 this item was rescheduled to this date. The Larimer County Community Action Board is an advisory body to the Larimer County Department of Human Development. The City has been represented on the Community Action Board since 1979. Carol Osborne was appointed as the City's representative in 1984 but has now tendered her resignation from the Board. A replacement needs to be appointed to represent the City on the Board. A copy of Carol Osborne's letter recommending Linda Hopkins to fill the vacancy is attached." City Manager Burkett responded to questions from Council about the history of this position. Councilmember Horak indicated he did not feel it was necessary to appoint a staff person to fill this position. He suggested that one of the boards and commissions applicants could represent the City on this board. Councilmember Rutstein pointed out there are currently several citizens serving on the board, along with a County representative and a City representative. She added that she thought the position was reserved for someone from the Fort Collins City government. City Manager Burkett indicated that staff could research the guidelines for filling this position. Mayor Ohlson suggested the item be tabled to allow for staff to compile additional information. Councilmember Stoner made a motion, seconded by Councilmember Liebler, to table Resolution 86-121 to August 19. Yeas: Councilmembers Horak, Kirkpatrick, Liebler, Ohlson, and Stoner. Nays: Councilmembers Estrada and Rutstein. THE MOTION CARRIED. -10- August 5, 1986 ' Resolution 86-130 Amending Industrial Development Revenue Bond Policies and Criteria. Adopted Following is staff's memorandum on this item: "Executive Summary The City's Industrial Development Revenue Bond policies are contained in Resolution 84-92. There are no provisions, however, in this Resolution regarding fee requirements for the issuance of refunding bonds. With the current low interest rates, one request for the issuance of refunding industrial development revenue bonds has been received and staff anticipates we will receive additional such requests. Staff has prepared two options for amendment to the current policies. Either option would provide clear direction with regard to the fees charged in instances where IDRB's are being refunded. Staff recommends Option A. Background Resolution 84-92 provides for two fees to be paid to the City in association with the issuance of Industrial Development Revenue Bonds. The first fee is an application fee of $1,000 and is charged to offset the staff cost and other incidental costs associated with the review of the IDRB application. The second fee is calculated as the present value of the amount to be derived from applying 1/16 of 1% to the unpaid principal amount of the bonds at the end of each bond year and collected at closing. The proceeds from this fee are to be used for the encouragement of economic development within the City. The Resolution is silent with respect to the fees charged in a refunding of existing bonds. Staff recommends that one of the following amendments be adopted to provide a clear policy statement: Option A. Refunding Bonds. If the proposed issuance is a current refunding, the following fees will be paid to the City by the applicant: $1,000 application fee as provided in Section IV; and a fee equal to the present value of the amount to be derived from applying 1/16 of 1% to the unpaid principal amount of the bonds at the end of each bond year less a credit for the fee originally paid for bond Years which are being refunded if the issuance is approved by the City of Fort Collins and Industrial Development Revenue Bonds are issued. Option B. Refunding Bonds. If the proposed issuance is a current refunding both fees as provided in the current Resolution (84-92) will be paid to the City by the applicant for the refunding issue. The economic development fee (1/16 of 1%) is based on the outstanding ' principal at the end of each bond year as calculated at the time of issuance of the bonds and is paid up front. It has been argued that in a refunding issue the original bonds are retired and thus the fee calculated -11- August 5, 1986 at the time of issuance includes a cost for bond years for which there will be no outstanding principal once the bonds have been refunded. In example, ' original bonds in the amount of $7,020,000 are issued for the years 1984 through 2012, the fee is calculated on the principal outstanding for each year through 2012, and a fee of $39,032 is paid to the City. The bonds are refunded and retired in 1986. The developer has paid the fee, but the bonds are no longer outstanding. Under option A, the developer would be required to pay the economic development fee (1/16 of 1%) on the refunding bonds, but would receive credit for the payment made on the bond years of the original issue which are being refunded. In this instance the developer would receive a $28,003 credit against the $43,743 fee for the new bonds. Total payment at the closing of the bonds would be $15,740. Option B would require that the same calculations be used for fees in refunding issues as is used in an initial issue. No credit would be given for the fees which had already been paid, and using the same figures as above, the developer would pay $43,743 at the time of closing. In other communities we have found that, in instances where a refunding is addressed in the IDRB policies, it is typical to charge the administration fee and waive the economic development fee. The adoption of either of the options would clear up this ambiguity in the City's existing IDRB policies. Staff recommends Option A." Director of Administrative Services Pete Dallow gave a brief presentation on this item, explained Option A and Option B, and answered questions from ' Council. Tom Lander, vice-president of the Madsen Corporation, explained the reasons for the issuance of refunding bonds and how the fees affect the project. Councilmember Rutstein made a motion, seconded by Councilmember Liebler, to adopt Resolution 86-130 (Option A). Councilmember Estrada stated he was in favor of the $1000 charge for administrative costs, but would like to strike the second fee. Councilmember Rutstein indicated she would vote in favor of this item because the additional fee goes toward economic development. Councilmember Horak pointed out that refinancing of bonds provides a benefit to the developer and also benefits the City by increasing the funds used for economic development. Councilmember Liebler stated she felt it was logical to link the percentage set aside for economic development to the amount of funding received by the developer. Mayor Ohlson stated he felt the additional fee -was very fair and noted that the developer saves money by refinancing. , -12- August 5, 1986 ' Councilmember Estrada stated he would not propose an amendment at this time but urged Council to look at how the City is encouraging economic development. Mayor Ohlson stated he felt this second fee in no way discourages economic development. The vote on Councilmember Rutstein's motion to adopt Resolution 86-120 (Option A) was as follows: Yeas: Councilmembers Horak, Liebler, Ohlson, Rutstein, and Stoner. Nays: Councilmembers Estrada and Kirkpatrick. THE MOTION CARRIED. Citizen Participation a. Proclamation Naming August 6 - 9 as Hiroshima and Nagasaki Commem- oration Days was accepted by Terry Stone of the Hiroshima and Nagasaki Commemoration Days Organizing Committee. b. Proclamation Naming August 12 as Civil Rights Day was forwarded to the appropriate persons. c. Presentation of gifts from Mayor of Sannohoe, Japan by Rotary Exchange t Student, Russell Webber. Russell Webber, Rotary Exchange Student, read a letter from the Mayor of Sannohoe and presented gifts from the Mayor of Sannohoe to Mayor Ohlson. d. Presentation to Colorado Monument Company for donation of entrance signs at Grandview and Roselawn Cemeteries. Director of Cultural, Recreational and Leisure Services H.R. Phillips gave a brief presentation about the signs donated by Colorado Monument Company. Mayor Ohlson presented a plaque to Colorado Monument Company thanking them for their donation. Ron and Pat Potter, owners of Colorado Monument Company, accepted the plaque and thanked Council for their recognition. e. Presentation of the Recycler-of-the-Year award by Mayor Kelly Ohlson to Natural Resources Director Roger Krempel. This award is presented by Recycle Now!, a state-wide recycling organization. Don Yon, Resource Associate for the City of Fort Collins accepted the ' award from Mayor Ohlson and spoke briefly about efforts. the City's recycling 13- August 5, 1986 Barbara Allison, 1212 Lynnwood Drive, inquired about the terms of Finance ' Director Jim Harmon's resignation from the City. Mayor Ohlson spoke about the City's annual Quality Circle picnic noting the trophy his team won during the competition. He recognized Joyce Kelly and Suzanne Jarboe -Simpson from the Employee Development Department who coordinate the Quality Circle program. Items Relating to the Robinson Piersal Proiect Following is staff's memorandum on this item: "Executive Summary A. Resolution 86-133 Approving Participation by the Fort Collins Downtown Development Authority in the Robinson Piersal Plaza project. B. Hearing and First Reading of Ordinance No. 113, 1986, Reimbursing R.P. Plaza, a Colorado Joint Venture, the Cost of Making Public Improvements Associated with the Robinson Piersal Plaza Project at Such Time as the Tax Increment Generated is Certified by the Larimer County Assessor in an Amount not to Exceed $850,000. On February 20, the DDA Board of Directors voted 6-1 to participate in the ' funding of certain public improvements associated with the development of Robinson Piersal Plaza. The DDA Board of Directors reaffirmed their commitment to Robinson Piersal Plaza project to participate in certain public improvements associated with the project not exceed the total amount of $850,000 by a unanimous vote on July 10. Background The Robinson Piersal Plaza project is scheduled to be built on the northeast corner of Mulberry Street and College Avenue, a primary gateway to Fort Collins. The project places a major mixed use development in a landscaped plaza facing south toward Mulberry Street combining retail space, office space, and residential units. The retail and office complex will be approximately thirty feet in height, anchored :by,. a major supermarket, supported by office and retail uses, and a two level parking structure. The retail complex will include 48,500'square feet for the supermarket and 9,700 square feet for neighborhood retail. The parking structure will be on two levels, with the upper level above the existing grade. This configuration, in addition to an intense landscape treatment, will screen the cars from view from the adjacent street, while providing the appearance of a landscaped plaza to the south of the development. The underground parking, located beneath the supermarket, will be owned by the Housing Authority. The residential portion of the project includes ' .sixty-seven (67) units of housing above the retail and office project. The apartment tower is -14- August 5, 1986 located on College Avenue immediately north of the plaza and is designed to provide a vertical element at this gateway to the City of Fort Collins. The project is being designed in conjunction with the Fort Collins Housing Authority as a project for the elderly. The project will be managed by the Fort Collins Housing Corporation. When all debt on the housing is retired, ownership will revert to the Housing Authority. Thirty percent (30%) of the units will be reserved for low income individuals or families with the remainder being market rents. The Robinson Piersal Plaza project meets the goals and objectives as established by the Downtown Development Authority Plan of Development including: o "To increase the total housing supply within the district." (p. 6) o To encourage the development of new buildings.... for uses as needed to achieve balanced mix of products and services within the district..." (p.6) o "To improve the visual attractiveness of the District..." (p. 6) o "To improve the usefulness and accessibility of sites and streets, thereby promoting the growth of the District and retarding economic, physical, and social decline in the District." (p. 6)- Fort Collins Land Use Policies will be achieved by Robinson Piersal Plaza project in several categories: ' o Maximum utilization of land within City o Urban development standards o Consistency with urban development policies o Inter -relationships between land uses o Location of neighborhood center o Services to neighborhood center o Neighborhood scale retail in residential areas o Higher density residential uses. a. Near core area b. Close to neighborhood park c. With adequate facilities d. Easy access to employment center e. Near public transportation The Downtown Development Authority believes that redevelopment of this corner (East Mulberry Street and College Avenue) is important to the downtown since it represents a major entry point into the central business district. This project brings new housing opportunities into the downtown area, and the close association between the housing and essential shopping facilities (i.e. the supermarket) is well conceived and planned. Location of a supermarket on the east side of College Avenue also will better serve the east side residential neighborhood. The Fort Collins Housing Authority commissioned a market study of the Piersal Plaza project and its potential ' absorption in the downtown area. According•to the study, there is a demand for downtown housing especially with affordable rents. Keeping essential shopping facilities in the downtown area is also a critical factor in -15- August 5, 1986 maintaining the stability, desirability, and growth of downtown residential neighborhoods in general. The objectives of this project can be summarized as the introduction of a mixed use project on a most important site at the center of Fort Collins, introducing needed facilities. Protect Budget Breakdown The Authority's original approach in determining its financial participation was to split funds between the residential and commercial portions of the project. However, because most of the public improvements serve both portions, allocating the funds between the commercial and residential pieces was impossible. An alternative approach suggested was to "grant" funds directly to the Housing portion of the project by channelling them through the Housing Authority. Bond Counsel has determined that this approach would not be legal. The budget breakdown below, therefore, outlines total DDA expenditures on offsite improvements and for underground parking. Offsite Public Improvements including sidewalks, retaining walls, utility relocation, College Avenue median improvements $508,270 Underground parking 323,066 Contingency (2%) 18,664 Total $850,000 The contract agreements between R.P. Plaza, a Colorado Joint Venture, the DDA and the City require the funds outlined above to be reimbursed to the developer only after the Larimer County Assessor's office certifies that the completed project generates the requisite tax increment. Should the project fail to be completed, the DDA and City have no financial obligations whatsoever. Should County certification of the tax increment fall below projections, public financial participation will automatically be proportionately reduced." City Manager Burkett reviewed the background of this project. Downtown Development Authority Director Chip Steiner and Ed Zdenek, project architect with ZVFK, answered questions from Council about the timing and scope of the project. Randy Larsen, representing Collins House Partnership, spoke regarding a 27 foot right-of-way easement that will be requested for a loading dock for the Safeway store. He asked that the easement be considered separately when the project is presented for approval. He indicated Collins House Partnership will oppose the grant of easement. -16- 1 August 5, 1986 Mary Margaret, 1317 Lakewood Drive, spoke in opposition to the funding for the project. David Roy, Executive Director of FortTown, expressed support for the project by the FortTown Board of Directors. Barbara Allison, 1212 Lynnwood Drive, opposed the project and the use of tax increment financing. Councilmember Estrada stated he felt this project will add to the viability of downtown and will benefit the entire community. Councilmember Liebler stated she felt it was appropriate to use tax increment financing to provide housing for low-income, elderly, and disabled people and would support the project for that reason. Councilmember Kirkpatrick stated she would support the project because It. provides a high -quality mixed use development in the downtown. Councilmember Rutstein stated she feels tax ,increment financing - is necessary to help defray the costs of developing in the downtown area. Mayor Ohlson indicated he would support the project because he feels it is good for the downtown area. Councilmember Rutstein made a motion, seconded by Councilmember Stoner, to adopt Resolution 86-133. Yeas: Councilmembers Estrada, Horak, Kirkpatrick, Liebler, Ohlson, Rutstein, and Stoner. Nays: None. THE MOTION CARRIED. Councilmember Stoner made a motion, seconded by Councilmember Liebler, to adopt Ordinance No. 113, 1986 on First Reading with the amendments described by the City Attorney. Yeas: Councilmembers Estrada, Horak, Kirkpatrick, Liebler, Ohlson, Rutstein, and Stoner. Nays: None. THE MOTION CARRIED. City Manager's Report City Manager Burkett brought Council's attention to an invitation to attend a meeting with the Larimer Weld Council of Government on August 20. Councilmembers' Reports Councilmember Estrada noted the Economic Development Task Force would be having a public meeting on August 14 to present their recommendations. -17- i August 5, 1986 Councilmember Rutstein commented on the extra street improvements the City t would be doing due to low bids received on other projects. She noted that the street rehabilitation had been completed one year early. Adjournment Councilmember Rutstein made a motion, seconded by Councilmember Liebler, to adjourn the meeting. Yeas: Councilmembers Estrada, Horak, Kirkpatrick, Liebler, Ohlson, Rutstein, and Stoner. Nays: None. The meeting adjourned at 9:20 p.m. Mayorr .' nV City Clerk I� IM