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HomeMy WebLinkAboutMINUTES-02/28/2013-AdjournedFebruary 28, 2013 COUNCIL OF THE CITY OF FORT COLLINS, COLORADO Council -Manager Form of Government Adjourned Meeting — 7:30 p.m. An adjourned meeting of the Council of the City of Fort Collins was held on Tuesday, February 28, 2013, at 7:30 p.m. in the Council Chambers of the City of Fort Collins City Hall. Roll Call was answered by the following Councilmembers: Horak, Marvel, Ohlson, Poppaw, Troxell, and Weitkunat. (Secretary's note: Councilmember Kottwitz arrived at 8:27 p.m.) Staff Members Present: Atteberry, Nelson, Roy. Continuation of Public Hearing on the Subject of Amending the Midtown Urban Renewal Plan to Authorize the Use of Tax Increment Financing in the Foothills Mall Area of the Plan, continued to March 27, 2013 The following is the staff memorandum for this item. "EXECUTIVE SUMMARY Staff has proposed that the Midtown Urban Renewal Plan be amended to authorize the use of tax increment financing in the Foothills Mall area of the Plan. As required in connection with such an amendment, notice was provided to all property owners, residents, and owners ofbusiness concerns in the Urban Renewal Area, and to Larimer County, and was published in the Fort Collins Coloradoan. In addition, an economic impact analysis of the proposed action was provided to Larimer County. All of the matters for consideration identified in the notices, other than the issue of amending the Plan to authorize the use of tax increment financing in the Foothills Mall area of the Plan, are being considered on this date, and are the subject of Resolution 2013-014. Staff is requesting that this portion of the public hearing described in the notices and consideration of this item be continued to a date certain, March 27, 2013, in order to allow further time for discussion with Lorimer County regarding the potential impacts of the TIF District and the proposed redevelopment on County revenues. BACKGROUND /DISCUSSION The Midtown Urban Renewal Plan (Plan) was adopted by the Urban Renewal A uthority (URA) Board in September 2011, and ratified and reaffirmed February 2013. The purpose of the Plan is to provide the URA the opportunity to use tax increment financing (TIF) to remediate blighted conditions through development and redevelopment. In July 2012, Walton Foothills Holdings IV, LLC (Owner), purchased Foothills Mall and adjacent property with the intent to complete a, significant redevelopment. Uffl February 28, 2013 An Agreement to Negotiate was executed between the Owner and URA in November 2012, and discussions with regard to the public financing package have been occurring since; one component of the package being TIF via the URA. In order to utilize TIF, City Council must first amend the existing Plan and create a TIF District. When a TIF District is created, the URA would collect incremental tax revenue for a period of 25 years. Notice was mailed to all property owners, residents, and owners of business concerns in the Urban Renewal Area on January 25, 2013, and published in the Fort Collins Coloradoan on January 26, 2013, that a public hearing would be held by the City Council on February 28, 2013, for the purpose of (I) ratifying and reaffirming that the area included in the Midtown Urban Renewal Plan is a blighted area as described in Section 31-25-103, C. R.S., (2) ratifying and reaffirming the adoption of the Plan, including the adoption of the Prospect South Tax Increment Financing District, as described in Section 31-25-107, C.R.S., (3) ratifying and reaffirming that the Fort Collins Urban Renewal Authority is authorized to acquire real property by all legal means, including eminent domain, and to convey real property so acquired to private parties, all as described in the Plan, (4) amending the Plan to authorize the use of tax increment financing in the Foothills Mall area of the Plan; and (5) other undertakings and activities in accordance with the Colorado Urban Renewal Law, Sections 31-25-101, et seq., C.R.S. All of the matters identified in the notices, other than the issue of amending the Plan to authorize the use of tax increment financing in the Foothills Mall area of the Plan, are being considered on this date, and are the subject of Resolution No. 2013-003. Staffis requesting that this portion ofthe public hearing and consideration of this item be continued to a date certain, March 27, 2013, in order to allow further time for discussion with Lorimer County regarding the potential impacts of the TIF District and the proposed redevelopment on County revenues. When the URA is considering amending an urban renewal plan or creating a new TIF District, Colorado Revised Statutes § 31-25-101 et seq. (Urban Renewal Law) requires the URA to notify Lorimer County (County) and provide an estimation of any fiscal impacts. The URA provided an impact report to the County on January 25, 2013, 30 days prior to the February 28 public hearing. However, consideration of the Resolution to amend the Plan and create the TIF District is being continued until March 27, 2013 to allow dialogue regarding the estimated impacts to continue between the URA and County. " Mayor Weitkunat recused herself from the discussion of this item due to a conflict of interest. Josh Birks, Economic Health Director, stated the item is recommended to be continued due to an ongoing dialogue with Latimer County regarding the impacts of creating a TIF District. Councilmember Poppaw made a motion, seconded by Councilmember Manvel, to continue the public hearing on, and consideration of, the amendment of the Midtown Urban Renewal Plan to authorize the use of Tax Increment Financing in the Foothills Mall Area of the Plan to Council's Adjourned meeting on March 27, 2013. Yeas: Ohlson, Manvel, Poppaw, Horak and Troxell. Nays: none. THE MOTION CARRIED. .g February 28, 2013 Resolution 2013-014 Making Legislative Findings Ratifying and Confirming the Approval of the Midtown Urban Renewal Plan, Including the Use of Tax Increment Financing in a Portion of the Urban Renewal Area, and Ratifying and Confirming the Authorization to Acquire Real Property for the Elimination of Blight and Redevelopment in the Urban Renewal Area Adopted The following is the staff memorandum for this item. "EXECUTIVE SUMMARY This item provides additional opportunityfor public comment on the Midtown Urban Renewal Plan (Plan) adopted by City Council in September 2011, and particularly about the provision in the Plan that authorizes the use ofeminent domain by the Fort Collins Urban Renewal Authority (URA). The Resolution does not modify the Plan or any related provision, but instead ratifies and confirms the prior approval of the Plan, as well as the specific provision in the Plan that authorizes the URA to use eminent domain subject to statutory and Plan requirements. The .subject of amending the Plan to authorize the use of tax increment financing in the Foothills Mall area of the Plan, which the notices also included as part of the City Council's hearing on this date, will be presented and considered separately from the other matters described in the notices. BACKGROUND /DISCUSSION In February 2011, City Council adopted Resolution 2011-008, directing staff to prepare an Urban Renewal Plan and Existing Conditions Survey for the Midtown Area. The Survey was completed later that year and on September 6, 2011, the Survey was accepted and the Midtown Urban Renewal Plan (Plan) was established with Resolutions 2011-080 and 081. Colorado Revised Statutes § 31-25-101 et seq. (Urban Renewal Law) requires that Ciry Council provide specified notices and hold a public hearing in connection with various actions authorized in the statute. Although notice and a public hearing were previously held in connection with the conditions survey and adoption of the Plan in 2011, in order to ensure that interested persons have an opportunity to address the provisions ofthe Plan, and in particular the general authorization in the Plan that allows Urban Renewal Authority (URA) to use eminent domain to acquire real or other property interests for a redevelopment project, ifstatutory requirements and the specific conditions in the Plan have been met. The Resolution does not modify the Plan or any related provision, but ratifies and confirms Council's prior approval of it. Notice of this public hearing was published in the Fort Collins Coloradoan on January 26, 2013, and notice was sent by mail to all property owners, residents and owners of business concerns in the Midtown Urban Renewal Plan area on January 25, 2013. The subject ofamending the Plan to authorize the use of tax increment financing in the Foothills Mall area of the Plan, which the notices also included as part of the City Council's hearing on this date, will be presented and considered separately from the other matters described in the notices. It is important to note that this action does not authorize or commence eminent domain proceedings on any specific property; rather, Council is ratifying the Midtown Urban Renewal Plan with the 399 February 28, 2013 inclusion of the authorization for the URA Board to use eminent domain as a potential redevelopment tool. " Josh Birks, Economic Health Director, noted this action would only enable the tool of eminent domain to be considered in this particular urban renewal plan area, it does not authorize the use of eminent domain for any specific property. If the Urban Renewal Authority were to consider the use of eminent domain, a public hearing and 'findings, as well as a vote, would be required. Megan Bolin, Economic Health Analyst, reviewed the factors of blight found in midtown which resulted in the creation of the Urban Renewal Plan for the area. This Plan officially created the Prospect South tax increment financing district. Dwight Hall, 3021 Lucinda Court, stated the language announcing this meeting was hostile. He asked why eminent domain was mentioned if it is not being considered. Ann Hutchison, Chamber of Commerce, supported the Plan and adoption of the Resolution. Eric, Sutherland, 3520 Golden Currant, stated the URA has financial obligations that exceed its revenue estimates. He supported the use of tax sharebacks. John Gaffney, 1038 West Vine, supported the Plan and adoption of the Resolution. Bruce Stahlman, Lakewood resident and ARC Thrift Store CFO, stated an agreement has been reached between ARC and Alberta to relocate the existing store elsewhere in the community. However, the agreement has yet to be fully completed and he urged Alberta to work diligently on its end to resolve the issue in a timely manner. Jim Clark, 1509 Hearthfire, Fort Collins Convention and Visitors Bureau President, supported the Plan and adoption of the Resolution. Julia Senesac, 1520 Hearthfire, supported the Plan and adoption of the Resolution. Tom Balchak, 2925 Clay Basket Court, supported the Plan and adoption of the Resolution. Ashley Styles, 6549 Spanish Bay Drive, Roche Construction, supported the Plan and adoption of the Resolution. She encouraged further education and outreach regarding the eminent domain process. Kirk Kniegge, 2040 South College, Spa World owner, expressed concern that his building is considered blighted and opposed the use of eminent domain. Carrie Gillis, 8020 Park Hill Drive, supported the Plan but opposed the use of eminent domain. Mayor Weitkunat requested staff input regarding the notice referenced by Mr. Hall. Deputy City Attorney Daggett replied several notices and mailings have been distributed; however, with respect to this particular hearing, there is a statutory requirement for a particular notice. Mr. Hall read language from the letter which he found as being hostile. 400 February 28, 2013 City Attorney Roy stated the purpose of.the letter is not to suggest the use of eminent domain is imminent or directed at a particular property; the purpose is to indicate that the plan being present to Council does include the authority to use that power to acquire property. However, should the URA opt to exercise that power, an entirely separate hearing and proceeding would occur. Mayor Pro Tern Ohlson asked about the date and voting record for this item originally and asked why it is coming before Council again. Birks replied the date of the original adoption of the Plan was September 6, 2011. At that time, two separate Resolutions were adopted: one accepted the blight conditions survey and one approved the Plan, which has not changed since that time. The vote was 6-0 on both Resolutions. The item is coming before Council again because notice was provided to a broader set of individuals and in order to provide another opportunity for public comment. Mayor Pro Tern Ohlson asked about the use of eminent domain in the past. City Manager Atteberry replied it has not been used for economic development purposes. Councilmember Horak stated the wording of the letter previously mentioned should be revisited. City Manager Atteberry concurred. Councilmember Troxell noted eminent domain is occurring in the community for an Xcel pipeline and cited this as an egregious example of the use of the power. Councilmember Manvel asked about the plan for relocation of individuals or families, should that be necessary. Birks replied that statement is included due to Council's previously adopted relocation assistance and property acquisition policy. Deputy City Attorney Daggett replied the underlying basis for that finding is going to vary based on the specifics of the Plan itself. Staff does believe relocation is feasible if necessary. Councilmember Manvel stated the wording appears as if there is a definite plan for these relocations: Mayor Weitkunat suggested this level of specificity should be part of the URA policies and procedures fitting under the Plan. Councilmember Manvel stated he disagrees with ratifying the statement because a method for such relocation has not been specifically described. Deputy City Attorney Daggett stated the language is required by statute. Councilmember Manvel stated a specific relocation plan needs to be in place and would accept the language. Councilmember Horak made a motion, seconded by Councilmember Poppaw, to adopt Resolution 2013-014. Councilmember Troxell stated eminent domain should not be used unless all other options are exhausted and there truly is a demonstrated benefit to the citizens of Fort Collins. 401 February 28, 2013 Mayor Pro Tem Ohlson noted the Xcel eminent domain issue is slightly different as it involves two private entities. Deputy City Attorney Daggett clarified that the statute requires a feasible method for relocation of persons displaced by adoption of the Plan; factually, there are no persons being displaced by the adoption of the Plan itself. Councilmember Kottwitz supported the Plan overall; however, she stated she would not support the Resolution as the eminent domain language is included. She stated it should be addressed on an individual basis and not included in this item. The vote on the motion was as follows: Yeas: Weitkunat, Manvel, Ohlson, Poppaw, Horak and Troxell. Nays: Kottwitz. THE MOTION CARRIED. The meeting was adjourned at 8:35 p.m. 1 ATTEST: d)MAA� && City Clerk Adjournment FO��: ' o � ••; •• �J L 402