HomeMy WebLinkAboutMINUTES-06/18/2013-RegularJune 18, 2013
COUNCIL OF THE CITY OF FORT COLLINS, COLORADO
Council -Manager Form of Government
Regular Meeting - 6:00 p.m.
A regular meeting of the Council of the City of Fort Collins was held on Tuesday, June 18, 2013,
at 6:00 p.m. in the Council Chambers of the City of Fort Collins City Hall. Roll call was answered
by the following Councilmembers: Horak, Overbeck, Cunniff, Poppaw and Troxell.
Councilmembers Absent: Campania, Weitkunat.
Staff Members Present: Atteberry, Nelson, Roy.
Agenda Review
City Manager Atteberry stated there were no changes to the published agenda.
Citizen Participation
Eric Sutherland, 3520 Golden Currant, opposed the payment of junk bond interest by taxpayers.
CONSENT CALENDAR,
6. Consideration and Approval of the Minutes of the May 21, 2013 Regular Meeting
7. Second Reading of Ordinance No. 077, 2013 Appropriating Prior Year Reserves in the
General Fund for Waste Reduction and Diversion Projects Approved by the Waste
Innovation Program.
awn.
This Ordinance, unanimously adopted on First Reading on June 4, 2013, shifts S 135,560 that
has accumulated in the Waste Innovation Program's reserve account into the City's General
Fund account so that the money can be used for the purposes intended. Revenues are paid
into the Waste Innovation Program by City departments that "self haul" trash from
municipal operations for disposal in the Latimer County Landfill. The fund is designated to
pay for projects that enhance these same departments' ability to divert more waste away
from the landfill. Unspent funds from several previous years had been moved into a
"reserve" account; this action moves the funds back into the General Fund.
8. Second Reading of Ordinance No. 078, 2013 Appropriating Unanticipated Grant Revenue
into the Stormwater Fund, and Authorizing the Transfer of Existing Appropriations from
the Flood Mapping/Stream Gaging Capital Project to the Post Fire Flood Warning Grant
Project for Early Flood Warning Capabilities.
June 18, 2013
This Ordinance, unanimously adopted on First Reading on June 4, 2013, appropriates funds
received from a State of Colorado grant totaling $17,881. The grant funds will be used to
enhance early flash flood warning capabilities due to the increased risk of flooding caused
by the High Park Fire. Existing appropriations will be used for the match of $5,960.
9. Second Reading of Ordinance No. 079, 2013, Authorizing the Use of the Noonan Tract and
the Bowes Homestead Tract as Match for a Neotropical Migratory Bird Conservation Act
Grant Administered by the U.S. Fish and Wildlife Service.
This Ordinance, unanimously adopted on First Reading on June 4, 2013, authorizes the use
of a recent acquisition of 280 acres at Soapstone Prairie Natural Area as match towards a
Neotropical Migratory Bird Conservation Act grant, as well as management funds currently
obligated in the Natural Areas Department (NAD) budget. Using the funds already spent
as match towards this grant is a great secondary benefit for the City. The $200,000 grant will
expand upon Rocky Mountain Bird Observatory's (RMBO) research and monitoring work
to implement conservation strategies and management for 19 high priority grassland birds
that breed within the Laramie Foothills Mountains to Plains Project and 27 high priority
species at wintering sites in the Chihuahua Desert of Mexico.
10. Second Reading of Ordinance No. 080, 2013, Authorizing Amendments to the
Intergovernmental Agreement Between the City and Poudre School District Pertaining to -
the Land Dedication and In -Lieu Fee Requirements Contained in Such Agreement.
Since 1998, the City of Fort Collins has collected a fee -in -lieu of land dedication for both
Poudre School District and Thompson School District. These fees allow a residential
developer to pay a school site fee to the School Districts rather than dedicate a parcel of land
to the District for development of future schools. The ability of the school districts to
require land dedication is authorized under Colorado Law..
Fees are reviewed every two _years and, in 2011, the Poudre School District reduced fee
amounts by 11 percent. This Ordinance, unanimously adopted on First Reading on June 4,
2013, will increase the amount of the fees the District receives by 6.9 percent: The School
District is requesting an increase in the.fees collected because of an increase in land values
and cost per acreage. This fee amount was reviewed and approved by the Poudre School
Board in February 2013. Thompson School District will not be adjusting fees in 2013.
11. Second Reading of Ordinance No. 081, 2013 Authorizing Dryland Farm Leases to Harry
Sauer on Long View Farm Open Space, Prairie Ridge Natural Area, and Coyote Ridge
Natural Area.
The City of Fort Collins Natural Areas Department is a minority owner in Long View Farm
Open Space and Prairie Ridge Natural Area, and is the sole owner of the McKee parcel
within Coyote Ridge.Natural Area. The majority owners of Long View and Prairie Ridge
are Larimer County and the City of Loveland respectively. All three properties are leased
by Harry Sauer for dryland wheat production and have been since the time of purchase of
the properties by the Cities and County. Intergovernmental Agreements state which agency
has management authority and receives the lease revenues for each property. As current
leases expire on the properties, all three entities have worked collaboratively to create leases
with similar terms and have advertised the properties for lease via one Request for Proposals
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June 18, 2013
process. This Ordinance, unanimously adopted on First Reading on June 4, 2013, authorizes
dryland farm leases to Harry Sauer on these areas. The new leases have a higher lease rate
and more contemporary language. Restoration of the dryland wheat to native grasses on the
McKee parcel will continue at the same pace as in the past and it will nearly be completely
restored to native grasslands by the end of the lease term of five years.
12. Second Reading of Ordinance No. 083, 2013, Designating the Johnson Farm Property, 2608
East Drake Road as a Fort Collins Landmark Pursuant to Chapter 14 of the City Code.
This Ordinance, adopted by a vote of 6-0 (Campana recused) on First Reading on June 4,
2013, designates the Johnson Farm Property at 2608 East Drake Road as a Fort Collins
Landmark. The owner of the property, Gino Campana of Johnson Farm LLC, is initiating
this request.
13. Postponement of Second Reading of Ordinance No. 084, 2013 Authorizing the Conveyance
of Four Easements, a Temporary Construction Easement and a Revocable Permit on City
Right -of -Way and City -Owned Property to Linden Bridges LLC for the Encompass -River
District Block One Mixed Use Development to July 2, 2013.
Encompass — River District Block One Mixed Use Development is a mixed use
development at 418 Linden Street consisting of office space, residential space and a
restaurant. The property is owned by Linden Bridges LLC. Several easements are required
for this project for improvements in the right-of-way, bank stabilization and river
enhancement, drainage and landscape areas. The Developer has requested that Second
Reading of this Ordinance authorizing the conveyance of easements, be postponed until July
2, 2013, due to scheduling conflicts with the developer and the consultant.
14. First Reading of Ordinance No. 085, 2013, Appropriating Unanticipated Revenue in the
General Fund to be Remitted to the Fort Collins Housing Authority to Fund Affordable
Housing and Related Activities.
The Fort Collins Housing Authority paid the City of Fort Collins $3,169 as the 2012
payments for public services and facilities. The Authority requests that the City refund those
payments, also known as Payment in Lieu of Taxes (PILOT), to fund sorely needed
affordable housing related activities.and to attend to the low-income housing needs of Fort
Collins residents.
Resolution 1992-093 reinstated the requirement that the Authority make annual PILOT
payments to the City. The City may spend the PILOT revenues 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 Council has annually
remitted the PILOT payment to the Authority since 1992.
15. First Reading of Ordinance No. 086, 2013, Authorizing the Convevance of a Non -Exclusive
Access Easement on Fossil Creek Wetlands Natural Area to Paragon Estates Homeowners
Association.
The Natural Areas Department intends to formalize its verbal agreement with Paragon
Estates Homeowners Association (HOA) for access across an existing two -track road off
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June 18, 2013
Trilby Road to the HOA's pumphouse. The pumphouse is located within an existing
irrigation easement on Fossil Creek Wetlands Natural Area. The HOA's current access has
minimal impact to the Natural Area and no additional impacts are anticipated. Access would
be solely for maintenance and operation of the facilities associated with the existing
irrigation easement. No other access rights are to be conveyed.
16. Resolution 2013-054 Makin Findings indings of Fact and Conclusions Re ardin the he Appeal of
the April 18, 2013 Planning and Zoning Board Approval of the Max Flats Project
Development Plan.
On April 18, 2013, the Planning and Zoning Board considered and approved the application
for the Max Flats, Project Development Plan. On May 2, 2013, a Notice of Appeal was filed
seeking to modify the approval.
On June 4, 2013, City Council voted 5-2 (Nays: Cunniff; Overbeck)concluding that the
evidence presented did not indicate the Board failed to conduct a fair hearing by considering
evidence relevant to its findings which was substantially false or grossly misleading, nor did
it substantially ignore its previously established rules of procedure. City Council voted 7-0
that the Planning and Zoning Board properly interpreted and applied the Land Use Code in
approving the Plan, but that, based upon information presented to the City Council on
appeal, the City Council determined that the decision of the Board should be modified by
the addition of the following conditions,of approval:
a. Five trees must be planted along the west side boundary of the property.
b. Juliet balconies must be installed along the west side of the building as shown on the
elevation presented to the City Council on appeal.
C. The tower elements must be added to the building as shown on the elevation
presented to the City Council on appeal.
d. All materials cladding the building must be consistent on all elevations around the
building.
In order to complete the record regarding this appeal, Council should adopt a Resolution
making findings of fact and finalizing its decision on the appeal.
***END CONSENT***
Ordinances on Second Reading were read by title by City Clerk Nelson.
Second Reading of Ordinance No. 077, 2013 Appropriating Prior Year Reserves in the
General Fund for Waste Reduction and Diversion Projects Approved by the Waste
Innovation Program.
Second Reading of Ordinance No. 078, 2013 Appropriating Unanticipated Grant Revenue
into the Stormwater Fund, and Authorizing the Transfer of Existing Appropriations from
the Flood Mapping/Stream Gaging Capital Project to the Post Fire Flood Warning Grant
Project for Early Flood Warning Capabilities.
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June 18, 2013
9. Second Reading of Ordinance No. 079, 2013, Authorizing the Use of the Noonan Tract and
the Bowes Homestead Tract as Match for a Neotropieal Migratory Bird Conservation Act
Grant Administered by the U.S. Fish and Wildlife Service.
10. Second Reading of Ordinance No. 080, 2013, Authorizing Amendments to the
Intergovernmental Agreement Between the City and Poudre School District Pertaining to
the Land Dedication and In -Lieu Fee Requirements Contained in Such Agreement.
11. Second Reading of Ordinance No. 081, 2013 Authorizing Dryland Farm Leases to Harry
Sauer on Long View Farm Open Space, Prairie Ridge Natural Area, and Coyote Ridge
Natural Area.
12. Second Reading of Ordinance No. 083, 2013, Designating the Johnson Farm Property, 2608
East Drake Road as a Fort Collins Landmark Pursuant to Chapter 14 of the City Code.
Ordinances on First Reading were read by title by City Clerk Nelson.
14. First Reading of Ordinance No. 085, 2013, Appropriating Unanticipated Revenue in the
General Fund to be Remitted to the Fort Collins Housing Authority to Fund Affordable
Housing and Related Activities.
15. First Reading of Ordinance No. 086, 2013, Authorizing the Conveyance of a Non -Exclusive
Access Easement on Fossil Creek Wetlands Natural Area to Paragon Estates Homeowners
Association.
Councilmember Cunniff withdrew Item No. 16, Resolution 2013-054 Making Findings of Fact and
Conclusions Regarding the Appeal of the April 18, 2013 Planning and Zoning Board Approval of
the Max Flats Project Development Plan, from the Consent Calendar.
Eric Sutherland, 3520 Golden Currant, withdrew Item No. 10, Second Reading of Ordinance No.
080, 2013, Authorizing Amendments to the Intergovernmental Agreement Between the City and
Poudre School District Pertaining to the Land Dedication and In -Lieu Fee Requirements Contained
in Such Agreement, from the Consent Calendar.
Councilmember Troxell made a motion, seconded by Councilmember Poppaw, to adopt all items
not withdrawn from the Consent Calendar. Yeas: Horak, Poppaw, Cunniff, Overbeck and Troxell.
Nays: none.
THE MOTION CARRIED.
Resolution 2013-054
Making Findings of Fact and Conclusions Regarding the Appeal of the
April 18, 2013 Planning and Zoning Board Approval of the Max Flats
Project Development Plan, Adopted
The following is the staff memorandum for this item.
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June 18, 2013
"EXECUTIVE SUMMARY
On April 18, 2013, the Planning and Zoning Board considered and approved the application for the
Max Flats, Project Development Plan. On May 2, 2013, a Notice of Appeal was filed seeking to
modify the approval.
On June 4, 2013, City Council voted 5-2 (Nays: Cunniff, Overbeck) concluding that the evidence
presented did not indicate the Board failed to conduct a fair hearing by considering evidence
relevant to its findings which was substantially false or grossly misleading, nor did it substantially
ignore its previously established rules of procedure. City Council voted 7-0 that the Planning and
Zoning Board properly interpreted and applied the Land Use Code in approving. the Plan, but that,
based upon information presented to the City Council on appeal, the City Council determined that
the decision ofthe Board should be modified by the addition ofthe following conditions ofapproval:
a. Five trees must be planted along the west side boundary of the property.
b. Juliet balconies must be installed along the west side of the building as shown on the
elevation presented to the City Council on appeal.
C. The tower elements must be added to the building as shown on the elevation presented to the
City Council on appeal.
d. All materials cladding the building must be consistent on all elevations around the building.
In order to complete the record regarding this appeal, Council should adopt a Resolution making
findings of fact and finalizing its decision on the appeal. ,
BACKGROUND /DISCUSSION
The Appellant's Notice of Appeal was based on allegations that the Planning and Zoning Board
failed to conduct a fair hearing in that it considered evidence was substantially false and grossly
misleading and that it substantially ignored its previously established rules of procedure. The
Appellant also alleged that the Planning and Zoning Board failed to properly interpret and apply
relevant provisions of the Land Use Code. "
Councilmember Cunniff stated the intent of one of the conditions was to ensure the materials
cladding the non -street sides of the building were of the same quality as the materials cladding the
street side.
Seth Lorson, City Planner, stated the materials are already consistent on all sides of the building.
Councilmember Troxell asked about the inclusion of brick on one side of the building. Lorson
replied the brick wraps around the north side of the building to the east side along the commercial
element of the building. The east side of the building is an open parking structure at the ground
level and the higher levels are consistent with the front side of the building.
Councilmember Cunniff stated the intent of Council and the topic of the discussion related to the
use of the same high -quality brick as on the Mason Street side of the building elevation on all
stories. Lorson replied that may need to be clarified in the language.
City Attorney Roy suggested language for the Resolution.
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June 18, 2013
Councilmember Cunniffmade a motion, seconded by Councilmember Poppaw, to adopt Resolution
2013-054, as amended with the suggested language. Yeas: Troxell, Horak, Overbeck, Poppaw and
Cunnif£ Nays; none.
THE MOTION CARRIED.
Consent Calendar Follow -Up
Councilmember Cunniff noted Item No. 15, First Reading of Ordinance No. 086, 2013, Authorizing
the Conveyance of a Non -Exclusive Access Easement on Fossil Creek Wetlands Natural Area to
Paragon Estates Homeowners Association, was also passed unanimously by the Land Conservation
Stewardship Board.
Councilmember Reports
Councilmember Troxell reported on the ribbon -cutting for an exhibit at the Global Village Museum.
Resolution 2013-055
Concerning the Fort Collins Urban Renewal Authority and its Tax Increment
Revenue Refunding Bonds (North College Avenue Project), Series 2013,
Declaring the City Council's Present Intent to Appropriate Funds to Replenish
the Reserve Fund Securing Such Bonds, If Necessary; and Authorizing a Cooperation
Agreement and Other Actions Taken in Connection Therewith, Adopted
The following is the staff memorandum for this item.
"EXECUTIVE SUMMARY
The URA intends to refinance a portion of the debt it originally borrowed from the City in relation
to the North College area. Now that an established revenue stream can be shown to investors,
private money can be used to replace City money. The 2013 bonds require the URA to establish a
debt reserve fund. To further facilitate the credit rating on the replacement debt, the City Council
is asked to adopt the Resolution expressing the Council's intent to replenish the debt reserve fund
if such funds are ever used to make debt payments. With this Resolution, the new URA debt is
expected to have an effective interest rate of 3.3%.
BACKGROUND /DISCUSSION
TheNorth College URA ProjectArea was created in 2004, allowing the URA to receive incremental
property taxes through 2029. Property tax increment revenue in North College was first received
in 2007 and the 2012 property taxes payable in 2013 are expected to be $1.3 million.
Table 1 -Net Property Tax Increment Revenue $000's
2007
2008
2009
12010
2011
12012
2013
$110
1 $287'
1 $263
1 $493
1 $536
1 $907
$1,285
*anticipated
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June 18, 2013
A common measure used by lenders in determining risk is the ratio of pledged revenue to debt
service, called a coverage ratio. Investors want that ratio to be high — at least 125%. The current
revenue of $1.3 million could support up to $I million a year in debt service. The proposed
maximum annual debt service of $919, 000 yields a good coverage ratio of 142%.
City Loans to URA
The initial financing model adopted forNorth College has the City providing initial capital through
a loan until the tax increment revenue reaches a maturity level that can support external financing
to third party investors. The City Council first authorized as Interagency Loan Policy in December
2008, with the most recent amendments approved in December 2012.
Eight loans have been made by the City to the URA in the North College District. The first loan has
been repaid. Table 2 recaps the current status of the loans.
Table 2 —
North College Loan Status
$000's
Original
Current
Term
Date
Project
Value
Balance
Years
Rate
CityFundHolding
0912006
Valley Steel, URA start-
$ 150
$ 0 '
5 '-
5.55%
General Fund
up funds
0512009
North College Market
5,000
4,729
20
2.85%
Capital Expansion
Place, Phase 1
1212010
JAX
173
106
5
2.50%
Capital Expansion
0612011
NEECO
326
326
10
3.01 %
Storm Drainage
0712011
Kaufman Robinson
193
193
5
2.46%
General Fund
0712011
North College Market
3,000
2,884
19
4.09%
Water Fund
Place, Phase 2
0812012
North College Road
2,700
2,700
18
3.92%
Capital Projects
Improvements
BCC
Loans to be refinanced '
11,542
10,938
3.44%
Weighted average
0612009
RM12
5,304
5,304
20
2.50%
General Fund
Total North College 16,846 16,242
Area
The proposal is to issue enough debt to take out $10.94 million in loans to the City, plus interest and
debt issue costs. For the following reasons the City loan to the URA that relates to RMI is not being
refinanced.
• The use of the RMI2 loan proceeds does not qualify the interest to be tax exempt. Therefore
the interest rate would be significantly higher.
• The new market tax credit deal cannot be refinanced until 2017.
• There is not enough revenue capacity to meet external investor expectations. Only about SI
million of the $5.3 million could be considered for refinancing if the favorable coverage
ratio was to be preserved.
The General Fund is holding the URA loan relating to the RMI2. Later this year the loan will be
reallocated and held equally between the Water Fund and Capital Expansion Fund. This will free
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June 18, 2013
up some monies in the General Fund. Future debt payments by the URA will then be allocated
appropriately to each fund.
Preliminary Structure of 2013 Bonds
Approximately $11.4 million of bond proceeds will be used to takeout $10.94 million of debt to the
City, plus interest of $254, 000, and pay debt issue costs of $206, 000. Coupon interest rates vary
from 2%for near term bonds and 4%for longer term bonds. The collective Net Interest Cost is
expected to be 3.301o, which compares favorably to 3.44% weighted average interest rate on the City
debt being retired. Future annual payments will varyfrom $914,000 to $919,000 through 2029.
City Intent to Replenish Reserves
The Underwriters for the 2013 Bonds have recommended that a debt service reserve fund in the
amount of approximately $920,000 would be'advisable.for marketing the 2013 Bonds and that
purchasing a Surety Policy.for such amount would be preferable to funding such reserve with cash.
The cost of such Surety Policy would be $55, 000. 1f it was ever necessary to draw upon the Surety
Policy, the City's replenishment would repay such draw. Staffprefers the Surety Policy option but
will make a decision later based on the potential impact on the credit rating. The City I snot legally
bound to replenish the reserve fund and it would be subject to annual appropriation offunds by the
City Council in its sole discretion. Sherman & Howard will issue a legal opinion that the City can
make this non -binding commitment.
It is anticipated that the City's non -binding commitment will result in the replacement debt receiving
a credit rating ofAa3. Without this, and a proven revenue stream, the interest rate would likely be
5% or higher rather than 3.3%.
Authority to Adopt the Resolution
Through the adoption of the URA Resolution, the Urban Renewal Authority is issuing property tax
increment revenue bonds to reftnance loans made by the City to the URA. The loans that are being
refinanced by the issuance of those bonds were made by the City to finance public infrastructure.
No private improvements were financed through the loans. In order to enhance the marketability
of the bonds that are being issued by the URA, staff Is recommending that the City Council adopt
a resolutionpursuant to which the City Council would indicate that, if the reservefund for the bonds
is ever drawn upon, the City Council will consider appropriatingfunds to replenish the reservefund.
This is not a legally binding obligation but rather is subject to appropriation by the Council, when
and if the reserve fund is drawn upon. (This has sometimes been referred to as a "moral obligation
pledge ")
Since the City cannot be compelled to appropriate funds under this approach, the Resolution and
related documents do not create a debt for purposes of the City Charter or the Colorado
Constitution.
A question has been raised by a local citizen as to whether Council actions such as the making of
this non-bindling commitment violates certain provisions of the City Charter. The Charter
provisions in question read as follows:
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June 18, 2013
ARTICLE V. FINANCE ADMINISTRATION
PART I. BUDGET AND FINANCIAL MANAGEMENT
Section 15. Appropriations forbidden.
No appropriation shall be made for any charitable, industrial, educational, or
benevolent purposes to any person, corporation, or organization not under the
absolute control of the city, nor to any denominational or sectarian institution or
association.
(Ord. No. 10, 1991, § 1(a), 2-19-91, approved, election 4-2-91)
Section 16. City not to pledge credit.
The city shall not lend or pledge its credit or faith, directly or indirectly, or in any
manner to or in aid of any private person or entity for any amount or any purpose
whatever, or become responsible for any debt, contract, or liability thereof
(Ord. No. 203, 1986, § 1, Part D, 12-16-86, approved, election 3-3-87; Ord. No. 10,
1991, § I(a), 2-19-91, approved, election 4-2-91)
These charter provisions are, in all material respects, identical to provisions contained in the
Colorado Constitution. Thus, the limitations contained in the Charter provisions apply to all
Colorado municipalities through the state constitution.
In response to the concerns that have been expressed, staff has conferred with both the City
Attorney.'s Office and the City's bond counsel to ensure that the proposed transaction does not
violate either of the provisions in question. Legal counsel has confirmed the following:
Article V, Section 15 of the City Charter is not applicable in this situation because (1) the Urban
Renewal Authority is under the absolute control of the City (since its governing body is made up of
the same members as the City's governing body) and it is not a denominational or sectarian
institution; and (2) the projects refinanced by the bonds are public infrastructure projects; thus, the
bond proceeds are not being used, either directly or indirectly, for a charitable, industrial,
educational or benevolent purpose.
Article V, Section 16ofthe Ciry Charter is not applicable because: (1) the Urban Renewal Authority
is a public entity; (2) the City would not incur any indebtedness or other legally binding obligation
by taking the proposed action; and (3) as noted above, the projects refinanced by the bonds are
public infrastructure projects,.
It should be noted that the financing structure being recommended by staff is not unique to the City.
Other municipalities that have utilized this same procedure in connection with tax increment
transactions include the City and County of Denver, the cities of Thornton, Westminster, and
Steamboat Springs, and the Town of Avon. The State of Colorado has also used this type of
financing structures for housing, charter schools and higher education.
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June 18, 2013
Future Financing Model
City staff have communicated to the URA that, goingforward, the City intends to only loan money
when alternative financing agreements are not feasible. The reimbursement agreement recently
approved for Aspen Heights is an example of the preferred approach for future development
agreements. The Aspen Heights developer will be reimbursed over time as revenue is collected,
rather than in a lump sum upon completion of the project.
Consultants
The URA and City have engaged three firms to help issue the new debt: Sherman & Howard as the
Bond Attorney, BLX as the Financial Advisor and RBC Capital Markets as the Bond Underwriters.
Timeline
June 24 Publish Preliminary Of
Fcial Statement on Internet Sites
July 9-10 Market Bonds
July 23 Closing
FINANCIAL / ECONOMIC IMPACTS
Property tax revenue in the North College URA plan area is unlikely to decline enough to trigger
the use of the Debt Service Reserve Fund.
The 2013 Bonds will be used to takeout $10.94 million in debt to the City, pay $254, 000 of interest
and pay $206, 000 in delivery date expenses.
Later this summer the City will use some of the returned monies to loan $5 million to the URA for
the first Midtown Project — The Summit (Capstone).
BOARD / COMMISSION RECOMMENDATION
The Council Finance Committee reviewed and tentatively approved the refinancing and the concept
ofa Council Resolution regarding a debt reserve replenishment pledge at its meeting on December
17, 2012 and again on May 20, 2013. "
Mike Beckstead, Chief Financial Officer, briefly introduced the item.
John Voss, Controller, discussed the refinance and stated this item would provide a moral obligation
pledge to help enhance the credit of the URA. He discussed the North College TIF district.
Adoption of this Resolution would enable the City to pledge to consider replenishing the URA
reserve fund. He noted this process maybe new to Fort Collins but it has occurred in other Colorado
municipalities.
Eric Sutherland, 3520 Golden Currant, suggested the City has already approved the moral obligation
pledge. He opposed the URA tax increment financing arrangement. .
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June 18, 2013
Councilmember Cunniff requested an estimate of the date for the return of funds to the General
Fund. Beckstead replied the intent would be to do that in the fall, though it could be done earlier
if needed.
Mayor Pro Tern Horak requested staff input regarding the reason for taking this action. Beckstead
replied a great deal of due diligence goes into a process such as this prior to the item coming before
Council, including getting a credit rating on the offering. This allows quick execution of the
transaction as quickly as possible after Council approval. He stated there was no representation that
Council had approved the moral obligation pledge. He discussed the methodology used by the
County for URAs.
Councilmember Troxell made a motion, seconded by Councilmember Overbeck, to adopt
Resolution 2013-055.
Councilmember Cunniff stated the Finance Committee reviewed the item and recommend approval.
The vote on the motion was as follows: Yeas: Horak, Troxell, Poppaw, Overbeck and Conniff.
Nays: none.
THE MOTION CARRIED.
Ordinance No. 080, 2013,
Authorizing Amendments to the Intergovernmental Agreement Between the City and
Poudre School District Pertaining to the Land Dedication and In -Lieu
Fee Requirements Contained in Such Agreement, Adopted on Second Reading
The following is the staff memorandum for this item.
"EXECUTIVE SUMMARY
Since 1998, the City ofFort Collins has collected a fee -in -lieu of land dedication for both Poudre
School District and Thompson School District. These fees allow a residential developer to pay a
school site fee to the School Districts rather than dedicate a parcel of land to the District for
development of future schools. The ability of the school districts to require land dedication is
authorized under Colorado Law.
Fees are.reviewed every two years and, in 2011, the Poudre School District reduced fee amounts
by 11 percent. This Ordinance, unanimously adopted on First Reading on June 4, 2013, will
increase the amount ofthe fees the District receives by 6.9 percent. The School District is requesting
an increase in the fees collected because of an increase in land values and cost per acreage. This
fee amount was reviewed and approved by the Poudre School Board in February 2013. Thompson
School District will not be adjusting fees in 2013. "
Eric Sutherland, 3520 Golden Currant, stated Poudre School District is building a school in Timnath
and it is being funded by all the citizens in Timnath, with the exception of those living in the Urban
Renewal Authority. He opposed the way in which the County Assessor has been diverting a portion
of Poudre School District's revenues to Urban Renewal Authorities.
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June 18, 2013
Councilmember Cunniff made a motion, seconded by Councilmember Troxell, to adopt Ordinance
No. 080-2013, on Second Reading.
Councilmember Cunniff stated he is interested in ultimately affecting legislation change.
The vote on the motion was as follows: Yeas: Troxell, Horak, Cunniff, Overbeck and Poppaw.
Nays: none.
THE MOTION CARRIED.
Other Business
Councilmember Troxell discussed construction of the new Xcel pipeline. He suggested a more
formal agreement should be put in place regarding dispute resolution in order to avoid potential
long-term costs being incurred by the City. City Manager Atteberry replied he will follow up with
Xcel and look into the possibility of creating such an agreement.
Adjournment
The meeting adjourned at 6:45 p.m.
FOR7ATTEST: A0F ...... l
City Clerk
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