HomeMy WebLinkAboutMINUTES-05/07/2013-RegularMay 7, 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, May 7, 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: Campana, Cunniff, Horak, Overbeck, Poppaw, Troxell and
Weitkunat.
Staff Members Present: Atteberry, Harris, Roy.
Auenda Review
City Manager Attebeny stated Item No. 32, Resolution 2013-641, 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, is being postponed to allow for the
new Finance Committee and Councilmembers to collect information concerning those bonds.
Citizen Participation
Mel Hilgenberg, 172 North College, suggested fines and other penalties should be implemented for
large group parties. He discussed tax increment financing and suggested a one-to-one property tax
rebate for taxing entities and urged Council to oppose the on -campus stadium.
Kelly Giddens, Wellington resident, requested that public comment be allowed at the May 21
meeting regarding the operator agreement with Prospect Energy.
Maya Hesser, 2133 Ford Lane, requested that public comment be allowed at the May 21 meeting
regarding the operator agreement with Prospect Energy and requested Council consider waiving
attorney -client privilege regarding the agreement. She also requested the exception for Prospect
Energy be eliminated from the ban.
Danny Hesser, 2133 Ford Lane, requested that public comment be allowed at the May 21 meeting
regarding the operator agreement with Prospect Energy.
Bryan Tribby, 525 East Drake Road, Homeward 2020, opposed the City's ban on camping due to
its negative impact on the City's homeless population.
Matthew Martinez, Fort Collins resident, requested that public comment be allowed at the May 21
meeting regarding the operator agreement with Prospect Energy and requested that Council uphold
the ban on tracking.
May 7, 2013
Nancy York, 130 South Whitcomb, discussed the tipping points for climate change and requested
that the City's environmental staff research the issue.
Citizen Participation Follow-up
Councilmember Poppaw requested additional information regarding the City's camping ban and
ticketing. She expressed support for Council waiving the rules to allow for public comment
regarding the operator agreement with Prospect Energy at the May 21 meeting.
Councilmember Cunniffagreed with Councilmember Poppaw on both points and stated he has asked
for Council to examine the Climate Action Plan with an eye towards making the goals stronger and
sooner.
Councilmember Troxell suggested Council meet with the new Executive Director of Homeward
2020 to discuss the City's homeless population.
Councilmember Overbeck agreed with Councilmembers Poppaw and Cunniff regarding the
homeless population and public, comment at the May 21 meeting.
CONSENT CALENDAR
6. Consideration and Approval of the Minutes of the March 26 and 27, 2013 Adjourned
Meetings, the April 2 and 16, 2013 Regular Meetings, and April 9, 2013 Special Meeting,
Second Reading of Ordinance No. 058, 2013, Appropriating Prior Year Reserves.
This Ordinance, unanimously adopted on First Reading on April 16, 2013, appropriates prior
year's reserves for expenditures authorized in 2012 by Council but which could not be
completed by the end of 2012.
8. Second Reading of Ordinance No. 059, 2013, Appropriating Unanticipated Grant Revenue
in the Transportation Services Fund for the Design, Equipment Procurement and
Implementation of a Traffic -Responsive Traffic Signal System.
The City's Traffic Operations Department was awarded a $248,370 Federal Congestion
Mitigation Air Quality (CMAQ) grant to design, procure equipment and implement a traffic
responsive traffic signal system at select intersections that are impacted by railroad and truck
operations. The project will be implemented at intersections along North College Avenue
(U.S. 287), Riverside Avenue (SH 14), Mulberry Street (SH 14) and Lemay Avenue where
trains and heavy trucks impact traffic on those major streets. The project is intended to
reduce traffic delays by more quickly dispersing congestion at the intersections impacted by
the passing trains.
This Ordinance, unanimously adopted on First Reading on April 16, 2013, appropriates the
grant revenue described above to fund this project.
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May 7, 2013
9. Second Reading of Ordinance No. 060, 2013, Appropriating Unanticipated Federal
Department of Energy Grant Revenues in the Light and Power Fund.
This Ordinance, unanimously adopted on First Reading on April 16, 2013, appropriates
$845,323 ofadditional revenue related to the Renewable and Distributed Systems Integration
(RDSI) project. This total includes $372,500 of additional Department of Energy grant
funding, as well as $472,823 in other RDSI project revenues.
10. Second Reading of Ordinance No. 061, 2013, Amending Section 2.2.10 of the Land Use
Code by the Addition of a New Subparagraph (D) Pertaining to Parkway Landscaping
Amendments.
This Ordinance, unanimously adopted on First Reading on April 16, 2013, amends the City's
.Land Use Code to add a new administrative process for changes to parkway landscaping in
approved development plans. This is a necessary follow-up to new Streetscape Standards
adopted by City Council on February 26, 2013. It involves parkway landscaping in single
family housing developments where approved development plans specify turfgrass in the
parkways (the strips of land between street curbs and detached sidewalks). These residential
parkways are part of the City -owned right-of-way, but abutting property owners are
responsible for parkway landscaping. The new process makes it easier for homeowners to
request changes to approved plans.
11. Second Reading of Ordinance No. 062, 2013, Approving an Intergovernmental Agreement
Amending Certain Provisions of the First Amended Intergovernmental Agreement
Pertaining to the Development of the Interstate 25/State Highway 392 Interchange.
This Ordinance, unanimously adopted on First Reading on April 16, 2013, approves an
amendment to the Intergovernmental Agreement (IGA) between the City of Fort Collins and
the Town of Windsor regarding the I-25/SH 392 Interchange.
The First Amended IGA became effective on November 27, 2012. The IGA provides that
Windsor and Fort Collins will annually share property and sales tax revenue generated in the
area surrounding the I-25/ SH 392 Interchange (the CAC). The amount to be shared is the
amount of increased taxes in the CAC beyond the amount collected in the base year. The
IGA provided that the base year would be the revenues collected in the year 2012, the year
the IGA became effective.
In discussions with the Town of Windsor, it was concluded that it would be more equitable
if the base year for the increment calculation was 2010 rather than 2012. The tax revenues
were reduced by as much as 25% in 2011 and 2012, since construction of the interchange
was ongoing during that year. 2010 was the last year of tax revenues before construction
began, and as such, would be a more accurate reflection of tax revenues for the purpose of
determining increased increments to be divided.
A similar Ordinance was adopted by the Windsor Town Board on Second Reading on March
25, 2013.
May 7, 2013
12. Second Reading of Ordinance No. 063, 2013, Authorizing the Conveyance of a Non -
Exclusive Utility Easement on Springer and Williams Natural Areas to Platte River Power
Authority.
This Ordinance, unanimously adopted on First Reading on April. 16, 2013, authorizes a
utility easement and a temporary construction easement across the Spring and Williams
Natural Areas to accommodate proposed construction of the Woodward Inc. Link-N-Greens
Campus.
13. Second Reading of Ordinance No. 064, 2013, Amendingthe e City Code to Authorize the City
Manager to Ban Oven Burning in the City Upon Recommendation of the Fire Chief.
During the spring and summer of2012, Fort Collins and Larimer County experienced record
setting fire weather following a prolonged drought. As a result, the community experienced
not only the worst wildfire in the history of Larimer County, but the second largest wildfire
in the history of Colorado and the second most costly season in lost homes and property.
During this time, Governor Hickenlooper and the Larimer County Commissioner enacted
fire bans due to the extreme fire conditions. The Fort Collins City Council also adopted a
fire ban through an emergency ordinance (Emergency Ordinance No. 065, 2012). At that
time, staff was directed to figure out a more efficient way to implement a fire ban and to
avoid the emergency ordinance process.
This Ordinance, unanimously adopted on First Reading on April 16, 2013, authorized the
City Manager to ban open burning.
14. Second Readine of Ordinance No. 068, 2013, Authorizing the Conveyance of a Non -
Exclusive Utility Easement to Public Service Company of Colorado.
This Ordinance, unanimously adopted on First Reading on April 29, 2013, conveys a Non -
Exclusive Utility Easement,to Public Service Company of Colorado("PSCo").
The City of Fort Collins staff worked with PSCo over the past several months to determine
the alignment of and mitigate the impacts for a new 16-inch high pressure gas transmission
line within city limits. The project is designed and construction is expected to start in May
2013. Most of the City issues were addressed, and City Council approved easements in
Natural Areas and adopted Resolution 2013-022 on March 19, 2013, directing the use of the
payments from PSCo be used for natural areas and trails.
There was continuing concern, however, about the proposed location of the pipeline in
private property at the northwest corner of Harmony Road and Shields Street. Although this
was primarily an issue of concern between the property owner and PSCo, the City expressed
concern over the impacts on future commercial development at the site. At its March 19
meeting, City Council directed the City Manager to follow up with PSCo on this issue.
Following several conversations with senior PSCo executives and project staff, they agreed
in principle to relocate the pipeline within the Shields Street right-of-way if the City agreed
to pay for any relocation of the approximately 2,000 feet of line adjacent to the property that
maybe necessary in the next fifteen years.
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May 7, 2013
This is a low -risk option, given the location of the pipeline in the Shields Street right of way.
PSCo is redesigning the pipeline within the Shields Street right -of way. In order to
document this agreement between the City and PSCo, staff recommends a Non -Exclusive
Pipeline Easement within the Shields Street right-of-way.
15. First Reading of Ordinance No. 066, 2013, Appropriating Prior Year Reserves and
Unanticipated Revenue in the General Fund for Cultural Development and Programming
Activities, Tourism Programming, and the Fort Collins Convention and Visitors Bureau.
This Ordinance appropriates $139,465, of which $57,571 is for 2013 Cultural Development
and Programming Activities (Fort Fund), $9,842 for 2013 Tourism Programming (Fort
Fund), and $72,052 for 2013 Fort Collins Convention and Visitors Bureau (CVB) from
Unanticipated Revenue (Lodging Tax) and Prior Year Reserves (unspent appropriations) in
the General Fund Lodging Tax Reserves.
Lodging Taxes for 2012 were estimated at $815,000 with actual Lodging Tax revenues
collected equaled $1,011,840 ($196,840 over estimate).
In 2013; the Fort Collins CVB is due to receive $740,552 based on 2012 Lodging tax
collections and prior year reserves. However, the CVB has already received $65,736 of the
unanticipated $137,788 Lodging tax revenue in 2012 so only $72,052 is needed to be
appropriated to the Fort Collins CVB.
16. First Reading of Ordinance No. 067, 2013 Amending Resolution 2013-001, Ordinance No.
006, 2013, and Ordinance No. 007, 2013, to Correct an Error in the Naming of the
Annexation as "Hansen Annexation' by Renaming the Annexation "Hansen Farm
Annexation."
In January and February of this year, the City Council adopted Resolution 2013-001,
Ordinance No. 006, 2013 and Ordinance No. 007, 2013, all pertaining to the what was called
the "Hansen Annexation." This reference to the "Hansen Annexation' was in error because
the reference should have been to "Hansen Farm" Annexation. The purpose of this
Ordinance is to correct that error.
17. Resolution 2013-037 Authorizing the Mayor to Enter into an Intergovernmental Aezeement
to Assist in the Operation and Maintenance of the HUB, a Multi -Agency Youth and Family
Progxam.
The City of Fort Collins partners with Latimer County, the City of Loveland, the Town of
Estes Park, the Town of Berthoud, the Colorado State University Police Department, the
Colorado State Patrol, and the Larimer County Sheriff s Office in a collective agreement to
fund operations of the Larimer County Juvenile Assessment Center (known as the "HUB").
The HUB provides valuable services to both families and the law enforcement agencies of
Larimer County by providing centralized screening for minors in need of services due to:
• Abuse and neglect
• Delinquency
• High risk behaviors that are non -detainable or beyond the control of parent(s)
May 7, 2013
• Parent — child conflict
• Drug and alcohol abuse
• Runaway youth
18. Resolution 2013-038Approvin the he Stipulated Determination of Vested Rights Between the
City and Horsetooth Development, LLC.
Horsetooth Development, LLC., is the developer of the Maple Hill Subdivision, a 155 acre
development, and has completed all but one phase of the development. The plan expired on
September 9, 2007. Accordingly, Horsetooth, LLC., has filed an application for a
Determination of Vested Rights under Division 2.13 of the Land Use Code (LUC) and the
City Manager and City Attorney agree that the application for Determination of Vested
Rights should be granted. The proposed Resolution would formalize the determination of
vested rights.
19. Resolution 2013 -039 Making Board and Commission Liaison Assignments and Various
Committee, Board and Authority Appointments.
This Resolution makes Councilmember liaison assignments to boards and commissions and
makes various committee, board and authority appointments. (These determinations will be
made at the Council Retreat on May 3 and 4.)
20. Resolution 2013-040 Making Appointments to the Energy Board and the Planning and
Zoning Board.
Two vacancies currently exist on the Energy Board due to the resignation of Steven Wolley
and Ross Cunniff Since there were no applicants on file, the vacancies were advertized to
recruit new applicants. Councilmembers Ross Cunniff and Wade Troxell recommend John
Graham to fill one vacancy with a term to begin immediately and set to expire on December
31, 2014 and Nick Michell to fill the other vacancy with a term to begin immediately and
set to expire on December 31, 2015.
One vacancy currently exists on the Planning and Zoning Board due to the resignation of
Gino Campana. Mayor Weitkunat and Councilmember Gerry Horak reviewed applicants
on file and elected to readvertise for the opening. After conducting interviews, Mayor
W eitkunat and Councilmember Horak recommend Jeffrey Schneider to fill the vacancy with
a term to begin immediately and set to expire on December 31, 2014.
21. Routine Deed.
Quit Claim Deed from Department of Transportation, State of Colorado, near the Poudre
River, adjacent to Spring Natural Area. This property will become part of the Springer
Natural Area.
***END CONSENT***
Ordinances on Second Reading were read by title by Deputy City Clerk Harris.
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May 7, 2013
Second Reading of Ordinance No. 058, 2013, Appropriating Prior Year Reserves.
Second Reading of Ordinance No. 059, 2013, Appropriating Unanticipated Grant Revenue
in the Transportation Services Fund for the Design, Equipment Procurement and
Implementation of a Traffic -Responsive Traffic Signal System.
9. Second Reading of Ordinance No. 060, 2013, Appropriating Unanticipated Federal
Department of Energy Grant Revenues in the Light and Power Fund.
10. Second Reading of Ordinance No. 061, 2013, Amending Section 2.2.10 of the Land Use
Code by the Addition of a New Subparagraph (D) Pertaining to Parkway Landscaping
Amendments.
11. Second Reading of Ordinance No. 062, 2013, Approving an Intergovernmental Agreement
Amending Certain Provisions of the First Amended Intergovernmental Agreement
Pertaining to the Development of the Interstate 25/State Highway 392 Interchange.
12. Second Reading of Ordinance No. 063, 2013, Authorizing the Conveyance of a Non -
Exclusive Utility Easement on Springer and Williams Natural Areas to Platte River Power
Authority.
13. Second Reading of Ordinance No. 064, 2013, Amending the City Code to Authorize the City
Manager to Ban Open Burning in the City Upon Recommendation of the Fire Chief.
14. Second Reading of Ordinance No. 068, 2013, Authorizing the Conveyance of a Non -
Exclusive Utility Easement to Public Service Company of Colorado.
26. Second Reading of Ordinance No. 065, 2013, Designating the Jessup Farm Property, 1908
South Timberline Road, as a Fort Collins Landmark Pursuant to Chapter 14 of the City Code
Ordinances on First Reading were read by title by Deputy City Clerk Harris.
15. First Reading of Ordinance No. 066, 2013, Appropriating Prior Year Reserves and
Unanticipated Revenue in the General Fund for Cultural Development and Programming
Activities, Tourism Programming, and the Fort Collins Convention and Visitors Bureau.
16. First Reading of Ordinance No. 067, 2013 Amending Resolution 2013-001, Ordinance No.
006, 2013, and Ordinance No. 007, 2013, to Correct an Error in the Naming of the
Annexation as "Hansen Annexation" by Renaming the Annexation "Hansen Farm
Annexation."
Councilmember Cunniff withdrew Item No. 20, Resolution 2013-040 Making Appointments to the
Energy Board and the Planning and Zoning Board, from the Consent Calendar.
Mayor Pro Tem Horak made a motion, seconded by Councilmember Troxell, to adopt all items not
withdrawn from the Consent Calendar. Yeas: Troxell, Horak, Weitkunat, Cunniff, Poppaw,
Campana and Overbeck. Nays: none.
THE MOTION CARRIED.
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May 7, 2013
Consent Calendar Follow-up
Mayor Weitkunat discussed Item No. 15, First Reading of Ordinance No. 066, 2013, Appropriating
Prior Year Reserves and Unanticipated Revenue in the General Fund for Cultural Development and
Programming Activities, Tourism Programming, and the Fort Collins Convention and Visitors
Bureau, and stated the hospitality and tourism industries are key generators of economic activity in
the City of Fort Collins. She announced the week of May 18-24 being designated as Tourism Week.
Staff Reports
City Manager Atteberry stated he would look into the homeless population issue and plan an
introduction for Council to the Homeward 2020 Executive Director.
Jackie Sargent, Platte River Power Authority General Manager and Barb Zar, Government and
External Affairs Director, presented the 2012 PRPA Annual Report and announced Listening
Sessions on Future Resources to be held in its member communities.
Councilmember Troxell thanked Mayor Weitkunat and Mayor Pro Tern Horak for their work on the
PRPA Board and welcomed Ms. Sargent and Ms. Zar.
Ms. Sargent stated PRPA is working with its member communities to determine needs and desires
regarding future resources.
Norm Weaver, Energy Services Engineer, reported on the City's solar progress and stated Fort
Collins has received the Colorado Solar Energy Association Award for its Sunshot Program.
Mike Gebo, Building Services, discussed the changes in permitting to encourage solar use.
Tim Buchanan, City Forester, reported on the City's receipt of the title of "Tree City USA" for the
past 35 years.
City Manager Atteberry commended Mr. Buchanan on his service to the City organization.
Mayor Weitkunat commended Mr. Buchanan on his work with the city's elementary schools.
Dan Weinheimer, Policy and Project Manager, announced a public forum regarding the oil and gas
industry and the operator agreement with Prospect Energy to be held May 8 at the Lincoln Center.
Councilmember Overbeck commended staff for their work on the forum.
Councilmember Reports
Mayor Weitkunat reported on the annual Council retreat.
Councilmember Cunniff reported on a tour of the MAX Bus Rapid Transit project.
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May 7, 2013
Resolution 2013-040
Making Appointments to the Energy Board and the Planning and Zoning Board, Adopted
The following is the staff memorandum for this item.
"EXECUTIVE SUMMARY
Two vacancies currently exist on the Energy Board due to the resignation of Steven Wolley and Ross
Cunniff. Since there were no applicants on file, the vacancies were advertized to recruit new
applicants. Councilmembers Ross Cunniff and Wade Troxell recommend John Graham to fill one
vacancy with a term to begin immediately and set to expire on December 31, 2014 and Nick Michell
to fill the other vacancy with a term to begin immediately and set to expire on December 31, 2015.
One vacancy currently exists on the Planning and Zoning Board due to the resignation of Gino
Campana. Mayor Weitkunat and Councilmember Gerry Horak reviewed applicants on file and
elected to readvertise for the opening. After conducting interviews, Mayor Weitkunat and
Councilmember Horak recommend Jef/rey Schneider to _ill the vacancy with a term to begin
immediately and set to expire on December 31, 2014. "
Councilmember Cunniff asked whether diversity regarding development interests was considered
when discussing candidates for the Planning and Zoning Board position. Mayor Weitkunat replied
many factors, including qualifications, are considered during the interview process.
Mayor Pro Tern Horak made a motion, seconded by Councilmember Troxell, to adopt Resolution
2013-040. Yeas: Horak, Weitkunat, Cunniff, Poppaw, Campana, Overbeck and Troxell. Nays:
none.
THE MOTION CARRIED.
Second Reading of Ordinance No. 065, 2013, Designating the
Jessup Farm Property, 1908 South Timberline Road, as a Fort Collins
Landmark Pursuant to Chapter 14 of the City Code, Adopted on Second Reading
The following is the staff memorandum for this item.
"EXECUTIVE SUMMARY
This Ordinance, adopted by a vote of 6-0 (Campana recused) on First Reading on April 16, 2013,
designates the Jessup Farm Property at 1906 Timberline Road as a Fort Collins Landmark. The
owner of the property, Gino Campana, is initiating this request.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on Second Reading. "
Councilmember Campana withdrew from the discussion of this item due to a conflict of interest.
May 7, 2013
Mayor Pro Tern Horak made a motion, seconded by Councilmember Overbeck, to adopt Ordinance
No. 065, 2013, on Second Reading. Yeas: Weitkunat, Cunniff, Poppaw, Overbeck, Troxell and
Horak. Nays: none.
THE MOTION CARRIED.
Consideration of the Appeal of the February 25, 2013
Administrative Hearing Officer Decision to Approve the
Project Development Plan at 621 South Meldrum Street, Hearing Officer Decision Upheld
The following is the staff memorandum for this item.
"EXECUTIVE SUMMARY
On February 13, 2013, an Administrative Hearing was held to consider approval of the Project
Development Plan at 621 South Meldrum Street. The Hearing Officer issued a written decision on
February 25, 2013 to approve the proposed Project Development Plan and Modification of
Standard, with two conditions.
The two conditions are as follows:
a. The Modification of Standard (reduction in setback from five feet to three feet) shall apply
to the rear 78 feet of the lot only.
b. Ifaccess to neighboring properties is required for construction, the Applicant and/or Owner
shall obtain appropriate easements.
On March 19, 2013, the Appellants submitted an Appeal of the Hearing Officer's Decision. The
Appellants assert that the Hearing Officer considered evidence that was substantially false and
grossly misleading and that the Hearing Officer failed to receive all relevant evidence offered by
the appellant.
Retaining walls and parking setbacks are a subject of this Appeal. The Applicants request to
construct a multi family building containing four units and four off-street parking spaces to be
accessed from the alley. The proposed plan includes several retaining walls ranging in heightfrom
1 to 2.5 feet. The proposed parking lot design requires one Modification of Standard to reduce the
required parking setbackfrom 5 feet to 3 feet.
BACKGROUND DISCUSSION
ASSERTIONS OFAPPEAL
The Appellants assert that the Hearing Officer considered evidence that was substantially false and
grossly misleading and that the Hearing Officer failed to receive all relevant evidence of by
the Appellant.
The Appellants state:
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May 7, 2013
"We seek to reject #120020 PDP approval because concerns presented by Alan
Skowron at the public hearing were not addressed. Alan stated concern of the wood
retaining wall (on property line, w/in 3 feet of existing house,
irrigation/swale/plantings on top). The wall presents significant risk to our house
& property.from rot/decay. Jeff's engineer responded that the wall will be
structurally sound because 'deadmen' will be installed. They did not address the
issue of rot ".
"Alan felt that he did not have the time or opportunity to adequately present
concerns. Less than 10 minutes (of 50 minutes) were open for public discussion;
most occupied by general discussion unrelated to Alan's concerns. Alan/Eric only
learned about the wall proximity to our house and wall details only three days before
the hearing by closely interrogating documents from the COFC website. We
therefore provided additional information documenting these concerns, risks and
record of correspondence w/Jeff. Please see accompanying document register. "
"We seek the following outcomes from our Appeal: 1) Redesign wall to reduce
rot/decay risk and pull wall back from property line to accommodate proper
structural footings and base course without any construction or structural
encroachment on 625 S. Meldrum Property OR: Redesign wall to reduce rot/decay
risk, provide legal agreement accepting full liability in perpetuityfor the wall and
damage caused by it, and provide detail of requested easement (to facilitate wall
construction and proper footings/base course) on 625 S. Meldrum property to our
satisfaction to obtain permissionfor easement. 2) Jeffacknowledged during hearing
that he is now planning for additional parking on the ditch. Minimum required
parking can be provided per zoning, TOD requirements without encroaching into
setback We object to the setback standard reduction from 5 feet to 3 feet "
1 The Hearing Officer's Findings,for the Modification of Standard request are located on
page 4 of the Decision. The Hearing Officer states:
"With a condition as to scope, the Modification of Standard meets the applicable
requirements of Section 2.8.2(H) of the Code.
a. The Modification would not be contrary to the public good.
b. The Modfication willpromote the generalpurpose ofthe standardfor which
the Modification is requested equally well or better than the standard without
modification, because the Modification is minor and the overall project
provides high quality, high performing architecture that is sensitive to the
character of the surrounding neighborhood.
C. The Modification would result in a substantial benefit to the City, because it
accommodates off-street parking that would otherwise be infeasible, and off-
street spaces will reduce on -street demand and thereby benefit neighbors
without any adverse impacts.
d. The Modification will not diverge form the standards of the Code except in
a nominal, inconsequential way when considered from the perspective ofthe
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May 7, 2013
entire PDP. The Modification provides appropriate massing, scale, detail,
and articulation. The landscape area, in combination with theprivacyfence,
provides a softened landscape edge interior to the parking area while
mitigating the visual impact to the property to the south. Additionally, the
Modification is along the parking drive isle, and not directly adjacent to the
parking spaces, where impact of a reduced setback would be greater ".
2. Mr. Herman Feissner, engineer for the applicant, responded to the Appellants' assertion
regarding the retaining wall on page 14 of the written testimony, stating:
"So, in response to some of the concerns that have been raised about the swale and
the retaining wall along the south property line, approximately one-third ofthe total
roof area of the structure would-be draining to this area. The roof drains for this
section of the property, or this section of the structure, would be connected to a
below grade system. So that means that that water coming off the roof will stay in
a pipe, it'll go into a pipe below grade all the way to the curb in Meldrum. " Mr.
Feissner continued on page 14, stating "You won't see it on the surface, no. The
only water you'll see on the surface in that area... or water on the surface, would just
be from a very small local area, it would be from the sidewalk adjacent to the
building and the landscaping in that area. So, theflows in that area are negligible. "
3. During the Hearing, the Hearing Officer asked for public testimony. There was no time limit
discussed for public testimony during the Hearing.
4. Notice of the Hearing was mailed to the affected property owners on January 30, 2013, 14
days prior to the Hearing. The notice provided a link to the hearing documents on the City
website.
SUMMARY
The Hearing Of included as a Condition that ifaccess to neighboringproperties is required for
construction, the Applicant and/or Owner shall obtain appropriate easements. The Hearing Officer
concluded that the P.D.P. and Modification of Standard were in compliance with the applicable
standards of the Land Use Code. "
City Attorney Roy reviewed the appeal process.
Councilmember Troxell disclosed that his son rented a room in the appellant's property two years
ago. He stated he has had no interaction with the appellant on this issue.
Councilmember Overbeck stated he attended the site visit and observed the site in comparison to
the materials presented.
Jason Holland, City Planner, stated the project, located at 621 South Meldrum, was approved by the
Hearing Officer with two conditions. He stated the appeal asserts that the Hearing Officer
considered evidence that was substantially false or grossly misleading and that the Hearing Officer
failed to receive all relevant evidence offered by the appellant. Holland reviewed the Hearing
Officer's decision and conditions.
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May 7, 2013
Mayor Weitkunat noted both parties have new information they wish to introduce. City Attorney
Roy stated the appellant has the opportunity to introduce new evidence as long as it was described
in the Notice of Appeal. Additionally, new evidence may be presented in order to answer Council
questions.
APPELLANT PRESENTATION
Alan Skowron, appellant and property owner at 625 South Meldrum, stated the appeal has been filed
due to concerns regarding a proposed wood retaining wall which were presented at the hearing and
were not considered. He stated aspects of a properly designed retaining wall would encroach onto
the property he owns adjacent to the subject property and would require construction access from
his property. Mr. Skowron stated the City should not have approved the preliminary design,
knowing there would be impacts to a neighboring property that were not agreed to by that property
owner. He suggested preliminary approval of the project be subject to the following conditions: all
components of the retaining wall, including the sub -grade, toe and footings do not encroach onto
the 625 South Meldrum property; the wall must be properly designed and certified by a professional
engineer and constructed such that it will not be subject to a high risk of failure from rot or structural
failure; contractors for the applicant's project do not require access to the property at 625 South
Meldrum to construct the project; the applicant must provide legal agreement that the owners of 621
South Meldrum are responsible for all maintenance of the wall and are responsible for clean-up and
return of the property at 625 South Meldrum to a pre -failure state in the event of a failure of the
retaining wall; and that the variation request for the side yard setback for parking is removed.
OPPONENT PRESENTATION
Jeff Eggleston, applicant and property owner at 621 South Meldrum, briefly described the proposed
project.
Ian Shuff, Aller, Lingle, and Massey, discussed the design aspects of the project detailing the
constraints of the site with respect to drainage. He discussed the architecture of the project noting
its compatibility with the neighborhood.
Kathy Mathis, The Birdsall Group, discussed the reduction of the side yard setback due to the
necessity of drainage and desire for off-street parking.
APPELLANT REBUTTAL
Walt Skowron, Alan Skowron's father, stated there were no pre -established agreements between the
property owners regarding this proposed project.
OPPONENT REBUTTAL
Jeff Johnson, Attorney for the Applicant, stated this appeal is limited to an allegation of an unfair
hearing and is quite narrow in scope. He stated the opponents believe the record is devoid of any
evidence that the Hearing Officer considered false or grossly misleading evidence. He discussed
the retaining wall as described in the transcript from the Administrative Hearing and argued that a
fair hearing was held.
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May 7, 2013
COUNCIL DISCUSSION
Councilmember Troxell requested that the appellant respond to the opponent assertion that several
opportunities were presented at the Administrative Hearing to further discuss the retaining wall
issue. Mr. Skowron replied there were a few times when the Administrative Hearing Officer asked
for comments and he did address some concerns at that time. He stated his concerns were not
addressed to his satisfaction during the hearing and added he has received no correspondence from
the applicant team other than a few brief emails.
Mr. Skowron stated he had more than two questions after the hearing, including landscaping,
parking, and the retaining wall construction. He stated the landscaping question was answered to
his satisfaction; however, the aspect of decay of a wood retaining wall was not discussed to his
satisfaction.
Councilmember Troxell asked if Mr. Skowron was present at the Council site visit. Mr. Skowron
replied his father was there on his behalf.
Councilmember Troxell stated the applicant has stated the retaining wall would be made of cedar
or other pressure treated wood and asked what evidence exists that the material would not last. Mr.
Skowron replied his main concern is that he was not able to see the specific plans at the review
meeting and stated he was given no resource for information on the actual construction of the wall.
He stated he was not aware the product was pressure treated but stated he is also concerned about
encroachment on his property.
Mayor Weitkunat asked what role the City and staff play in the crafting and building of a project.
Holland replied the review of the site plan documents is the joint responsibility of all the staff,
including staff engineers with both the Stormwater Department and Engineering Department. The
preliminary project plan looks to establish the basic site -planned elements, the vertical elements, the
drainage elements, and the basic site components of the project. Some details are requested at the
final plan stage and occasional site plan adjustments. are made at this time.
Mayor Weitkunat asked if the concerns being raised could be addressed at the final plan stage.
Holland replied in the affirmative.
Councilmember Campana made a motion, seconded by Councilmember Troxell, to uphold the
decision of the Hearing Officer for the reason that she did not fail to conduct a fair hearing either
by considering evidence relevant to her findings which was substantially false or grossly misleading,
or by failing to receive all relevant evidence.
Councilmember Cunniff stated he did not hear evidence that specifically addressed the complaint
about the Hearing Officer failing to consider evidence and would therefore support the motion.
Councilmember Campana agreed with Councilmember Cunniff and stated the retaining wall is not
likely to be at a height requiring review and stated additional landscaping is often a tradeoff for
reduced side yard setbacks.
The vote on the motion was as follows: Yeas: Conniff, Poppaw, Campana, Overbeck, Troxell, Horak
and Weitkunat. Nays: none.
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May 7, 2013
THE MOTION CARRIED.
(Secretary's note: The Council took a brief recess at this point in the meeting.)
Resolution 2013-042 Approving a Redevelopment and Reimbursement
Agreement with the Fort Collins Urban Renewal Authority,
Walton Foothills Holdings VI, LLC, and the Foothills Metropolitan
District Regarding the Redevelopment of Foothills Mall, Adopted as Amended
The following is the staff memorandum for this item.
"EXECUTIVE SUMMARY
This resolution authorizes and approves the execution of a Redevelopment and Reimbursement
Agreement, by the City Manager of the City ofFort Collins, in connection with the redevelopment
of the Foothills Mall.
BACKGROUND /DISCUSSION
Project Overview
Location
Located within theMidtown Urban Renewal Plan (Adopted, September2011), the Foothills Fashion
Mall ('Foothills') encompasses approximately 76.3 acres ofproperty bounded generally on the
north by Swallow Road, on the east by Stanford Road, on the south by Monroe Drive, and on the
west by College Avenue. The project is zoned C-G General Commercial and is located in the
Transit -Oriented Development Overlay District (the "TOD District').
History
The original Foothills Fashion Mall opened in 1973 and was constructed, owned, and operated by
apartnership that included the Everitt Companies. The Everitt Companies developed numerous real
estate projects during the 1970s, 80s, and 90s throughout Fort Collins. In 1988, Foothills was
expanded to include additional anchor stores (J C. Penney, Mervyn's). In 1995, Foothills changed
further with an expansion of the Foley's (now Macy's) building.
The Fort Collins Urban Renewal Authority ("URA ) was created by City Council in 1982 to prevent
and eliminate conditions in the community related to certain "blight factors ", as defined in Sections
31-25-101, et seq., Colorado Revised Statutes (the "Urban Renewal Law'). Using tax increment
'financing ("TIF), the URA is able to leverage public and private investment to remediate blight,
which is complimentary to the City's broader goal ofpromoting redevelopment and infill in targeted
areas. Midtown Fort Collins has been identified as one of these targeted areas for infill and
redevelopment, primarily because it includes a significant portion of the College Avenue
commercial corridor and the Mason Corridor collectively referred to as the `Community Spine ".
A major influence in Midtown is Foothills Mall. For the first decades of operation, the Mall was
a major regional retail center that attracted shoppers from northern Colorado, southeastern
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May 7, 2013
Wyoming, and southwestern Nebraska. The mall underwent several expansions in 1980s and 1990s,
but nevertheless has experienced declining sales and increasing vacancies, partly due to increasing
competition from newer retail centers in northern Colorado. The loss of two major anchor stores,
Mervyn's and JC Penny, only further contributed to the mall's decline and solidified the
revitalization of the mall as a top City priority.
General Growth Properties (GGP) purchased the aging mall in 2003 with plans to revitalize and
redevelop the property. Recognizing the mall has significant barriers to redevelopment, the City
early on explored TIF via the URA as a potential tool to assist with its redevelopment. In the City's
2005 Economic Action Plan, the mall is identified as the "single most important retail
redevelopment initiative in the Ciry ", and identifies the establishment of an Urban Renewal Plan
as the "most effective manner for the City to assist in the redevelopment".
In 2007, the City hired a consultant to conduct an Existing Conditions Survey to determine if the
area contained sufficient conditions according to Urban Renewal Law to declare it blighted. The
2007 Survey affirmed blight factors exist and declared the area blighted. City Council ultimately
adopted Resolution 2007-052 and 2007-053 declaring Foothills Mall blighted and approving the
Foothills Mall Urban Renewal Plan, respectively. Unfortunately, GGP did not initiate any
redevelopment activities and decided to postpone investment because of the economic environment
at the time. In order to preserve the ability to use TIF in the.future, City Council passed Resolution
2008-110 which repealed Resolution 2007-053 and dissolved the Foothills Mall Urban Renewal
Plan.
Despite this setback, redevelopment of the mall continued to be a top priority. In 2010, the City
conducted a Redevelopment Study for Midtown; while this analyzed Midtown as a whole, a
significant portion was dedicated to the mall and potential redevelopment scenarios that could
occur. One of the action items from this Study was for staff to examine Midtown,for conditions of
blight and determine whether it met statutory qualifications for an Urban Renewal Area.
In February 2011, as a result of the recommended action item, City Council adopted Resolution
2011-008 authorizing and directing staff to prepare an Urban Renewal Plan and Existing
Conditions Survey (Survey) for the Midtown Area, including Foothills Mall. Since the mall had
been previously examined in 2007, staff conducted a basic site evaluation and determined that the
blightfactors cited in 2007 remainedpresent in 2011. Ultimately, City Council adopted Resolutions
2011-080 and 2011-081 adopting the Midtown Existing Conditions Survey and Midtown Urban
Renewal Plan, respectively. Conversations between the City and GGP about redevelopment of the
mall continued throughout this time. However, GGP decided not to invest in the property and sold
Foothills Mall and adjacent properties to Walton Foothills Holdings IV, LLC (the "Developer') in
July 2012.
Seeing redevelopment of Foothills Mall seemed imminent, the URA sent notice mid -July to property
owners and tenants within and immediately adjacent to the mall informing those parties that
ownership had changed. Additionally, the notice solicited redevelopment proposals for the URA
to take into consideration. Although general inquiries were received, the URA only received a
formal proposal from Walton/Alberta. In September 2012, the URA sent the Walton/Alberta a
formal letter selecting them as the developer_for the project.
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May 7, 2013
Project Description
Alberta Development Partners inpartnership with Walton Street Capital (the "Developers') intend
to undertake a comprehensive redevelopment of the Foothills Fashion Mall (the "Project'). The
redevelopment will include a mixed -use redevelopment with a commercial/retail component
(734,979 square feet), a commercial parking structure and up to 800 multi family dwelling units on
76.3 acres.
Retail
The project proposes to deconstruct portions of existing Foothills and renovate the remaining
original structure, for a 388, 084 square foot, one -level, enclosed shopping mall. In addition, various
free standing buildings including the Commons At Foothills Mall Building, the Shops at Foothills
Mall buildings, The Plaza at Foothills Mall, the Corner Bakery, Christy Sports and the Youth
Activity Center building would all be deconstructed. In their place, eight new retail buildings are
proposed along South College Avenue, ranging from 9,300 square feet to 31,715 square feet in size.
Internal to the site, five new retail building are proposed to be located northwest of the existing
enclosed mall. Thesefive buildingrangefrom 7,636squarefeet to 12, 000 squarefeet in size. To the
southeast ofthe existing mall, four new restaurants are proposed ranging in sizefrom 8, 088square
feet to 124, 000 square feet as well as a new, two-story 24, 000 square foot Foothills Activity Center
to replace the Youth Activity Center. Additionally, a new 86,754 square.foot entertainment and
theater building is proposed located southeast ofthe new restaurants. The large east green area and
smaller west green plazas anchor the pedestrian network The commercial component provides a
total of 3,581 parking spaces via a six level, 84,663 foot parking structure and surface parking
spaces.
Residential
The residential component of the project proposes up to 800 multi family units distributed among
five buildings that will include a mix ofstudio, one, two, and three bedroom units. Currentplans call
for the construction of446residential units. The residential component ofthe project includes 1,422
parking space via three separate subterranean structures (858 spaces), an above ground structure
(472 spaces) and 92 open surface parking stalls. The residential buildings will range in heightfrom
two- to five -stories. Generally, the residential building heights get taller as the project develops
from the north to south along Stanford Road.
Green Development Practices/Components
The Developer is committed to developing an efficient and high performing project in an effort to
meet or exceed many ofthe objectives identified in the City's Climate Action Plan. It should be noted
that redevelopment of the Foothills Mall will inherently achieve many significant improvements
including the removal and mitigation of existing hazardous materials (Asbestos), a complete
upgrade of stormwater.facilities on -site, and the inclusion of updated HVAC and lighting systems,
which are significantly more efficient than the existing systems.
The Developer is currently engaged with the City of Fort Collins in a modified Integrated Design
Assistance Program (IDAP) in an effort to identify opportunities for improved building
performance. City staff and the Developer's design team has a scheduled half -day design charrette
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May 7, 2013
on May 3 to identify design opportunities that will result in high-performance buildings that exceed
building code requirements for energy performance. The objectives of that meeting are to identify
proposed design elements that go above and beyond code requirements; to collaborate on new
opportunities for enhanced design features to decrease the project's carbon impact; to quantify the
project's carbon impact, and to identify and agree on a clear plan of action to achieve a high
performance project. The results of the meeting will be provided to City Council under separate
cover.
The Developer has committed to numerous other "green "components within theproject, which are
included in Attachment I and titled "Foothills Mall Renovation and Fort Collins Green Code
Compliance. " The City of Fort Collins has provided the Developer a response to that memo with
a list of enhancements and additional measures to improve the environmental sustainability of the
project (Attachment 2). The Developer has agreed to comply with those measures and will be
updating their memo to include the enhancements. The updated memo will be provided to City
Council under separate cover.
The Climate Action Plan includes a goal of diverting 50% of waste from the landfills and Alberta
addressed this policy in several ways. As part of the deconstruction/demolition of the existing mall,
Alberta has committed to dismantle the existing structures in manner that diverts at least 50% (by
weight) of all materials from the landfill. Alberta Development has provided a memo which
articulates how this will be accomplished, which is included as Attachment 3. It should be noted
that demolition and construction waste material diversion is included as an agenda item during the
May 3 charrette to identify ways to increase the diversion amount even more.
The recycling plan during operations of the mall is also a key component of the overall waste
diversion goals and several recommendations have been made to the Developer by the City's
Environmental Services that address this issue. These recommendations are included within the
enhancements and additional measures provided to the Developer to improve the environmental
sustainability of the project (Attachment 2). An overall waste management plan will be developed
for the project and is included as part of the May 3 charrette.
Blight Conditions
A first step in any Urban Renewal Authority project is the determination of whether an area
constitutes a blighted area under Colorado Urban Renewal Law. The principle purpose of
determining blight and creating the related urban renewal plan and programs and/or projects of
redevelopment is to eliminate blight or prevent the spread of blight and/or the further deterioration
of blight areas (Colorado Revised Statutes Section 31-25-107(4.5).
In 2007, the City of Fort Collins commissioned Terrance Ware &Associates to conduct an Existing
Conditions Study to determine if the Foothills Mall area met the statutory requirements to be
determined a "blighted area ". The 2007 study concluded the area was blighted based on six blight
conditions. Furthermore, all ofthe blight conditions were found to still be in existence in April2011
when the City conducted a second existing conditions study as part of the Midtown Existing
Conditions Survey, which was third party verified by MIA Planning & Architecture.
In addition to deterioration of structures, obsolescence of building systems and poor or unsafe
ingress and egress, there were three site conditions that contributed to the determination of blight.
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May 7, 2013
These included: poor and hazardous pedestrian circulation; inadequate vehicular circulation; and,
inadequate drainage facilities. The three site conditions were found to be present, independent of
each other, in multiple locations; however, all three site conditions were found to exist on the
southwestern portion of the site. The plan identified missing sidewalk connections along College
Avenue, as well as a lack ofpedestrian connections from College Avenue to the interior ofthe site;
inadequate vehicular circulation within the interior of the site due to a lack ofdrive aisles and curb
and gutter; as well as poor drainage as a result of the topography of the site. In particular, the site
containing Sears is lower than the remaining mall site, and is immediately adjacent to a drainage
ditch. The report states: "Drainage of the 72-acre parcel is highly inadequate. There are only six
drains tofacilitate drainage for the entire property. This causes significant back-ups often resulting
in flooding during heavy rainstorms. "
The site plan submitted to and approved by the Planning and Zoning Board on February 7, 2013,
reflects an effort to meet the goals of City Plan, the Land Use Code, and remediate the blight
conditions identified in the 2007 Existing Conditions Study. In addition to the meeting the goals of
City Plan and the Land Use Code, the current site plan remediates the three highlighted blight
conditions in the following manner. In relation to vehicular circulation, the plan reconfigures the
site to provide definite drive aisles with curb and gutter. The proposed drive aisles provide clear
sight lines, and are clearly delineated with landscaped islands. Additionally, the proposed new
building does not extend as far to the west as the existing building, and the existing drainage ditch
is to be accommodated with an underground culvert. This eliminates the "bottleneck" issue and
provides ample space for overall vehicular circulation.
The existing lack of adequate pedestrian connections is alleviated by addressing both the vertical
and horizontal constraints on the site. In order to achieve adequate pedestrian connections to the
interior of the site, a significant amount offill (roughly eight 8.feet in some locations) is proposed
on the site. The fill would allow the pedestrian connections from College Avenue to the interior of
the site to meet ADA requirements. Additionally, newsidewalks are proposed along CollegeAvenue,
as well as the main entrance into the mall from College Avenue.
Finally, the inadequate drainage on the site is remedied by adding the fill, which allows for
improved flow to the exterior of the site, as well as adding new drainage structures where
appropriate.
Eligible Costs
Certain projects costs are eligible for public assistance per Colorado Revised Statutes relating to
Urban Renewal and Special Districts (Title 32). The types ofeligible costsfor each (Urban Renewal
and Metro District) are relatively broad and include such categories as:
• Acquisition of a blighted area;
• Demolition and removal of buildings and improvements;
• Installation, construction, or reconstruction of streets, utilities, parks, playgrounds, and
other improvements necessaryfor carrying out the objectives of the urban renewal plan;
• Carrying out plans for a program through voluntary action and the regulatory process for
the repair, alteration, and rehabilitation of buildings or other improvements in accordance
with the urban renewal plan;
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May 7, 2013
Acquisition of any other property where necessary to eliminate unhealthful, unsanitary, or
unsafe conditions, lessen density, eliminate obsolete or other uses detrimental to the public
welfare, or otherwise remove or prevent the spread of blight or deterioration or to provide
land for needed public facilities.
It is important to note that the total amount of eligible costs per the Colorado Revised Statutes is
significantly higher than the $53 million in public assistance being offered. However, the Developer
and the City of Fort Collins established a process to identify project costs that are extraordinary
costs associated with remediating blighted conditions on the property, or costs associated with
public improvements or public infrastructure. These are costs in which there is direct public benefit.
The process of identifying the eligible costs balanced the need to maximize the public benefit while,
ensuring the public assistance was the minimum amount necessary to make the project financially
viable.
Thefollowing provides a briefdescription ofeach ofthe eligible costs summarized in Table I below:
• Land Acquisition: This amount represents the estimated value of the land underlying the
portions of the project that include the public gathering spaces such as the east and west
lawns, the Foothills Activity Center, and other green or public spaces on the site.
• Parking Structure: This cost represents 75% of the parking structure. The structure allows
for greater utilization of site including the public gathering spaces.
• Demolition/Abatement: Demolition and deconstruction of the agingfacility represents an
extraordinary cost associated with remediating blight and mitigation the hazardous
materials.
• Fixture and Amenities: This represents urban design enhancements to the public gathering
spaces (east and west lawns) to provide high quality of place.
• Ditch Relocation: Relocating a segment of the Larimer No. 2 ditch to the west side of
College Ave. represents an extraordinary cost associated with remediating blight.
• Site Work: This cost is associated with earthwork (grade and fill), site walls to alleviate
topographic constraints on the site, as well as asphalt paving, curb and gutter, and
sidewalks.
• Utilities: This represents upgrades and improvements to sanitary sewer, storm water, water
lines and fire water systems.
• Soft Costs: Architectural and engineering costs associated with activity center, parking
structure, as well as materials testing, and environmental/abatement management.
• Foothills Activity Center: A publicly owned and operated activity center that includes
gymnasium, public meeting rooms and after -school programs for youth.
• Pedestrian Crossing/Underpass: A pedestrian connection linking MAXBRTand Foothills
Mall utilizing Lorimer No. 2 Ditch alignment under College Ave.
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May 7, 2013
Table 1
Summary of Eligible Costs for Reimbursement
($ Millions)
Blight Removal City
Total
Infrastructure Infrastructure
Public
Land Acquisition
$ 5.5 $
5.5
Parking Structure
9.6
9.6
Demolition / Abatement
3.9
3.9
Fixture & Amenities
1.4
1.4
Ditch Relocation
2.8
2.8
Site Work
12.9
12.9
Utilities
4.5
4.5
Soft Costs
4.6
4.6
Foothills Activity Center
4.8
4.8
Pedestrian Crossing / Culvert
3.0
3.0
TOTAL
$ 45.2ji$ 7.8I$
53.0
Public Benefit
Fort Collins provides a high quality ofplace attributed to the lively historic downtown and the city's
impressive parks, trails and open space networks. These community assets make Fort Collins an
attractive place for both a well-educated workforce and diverse industries. The redevelopment of
Foothills represents an opportunity to strengthen the existing high quality of place. The Project
meets numerous City Plan policy objectives and occurs in a Targeted Redevelopment Area (as
defined by City Plan). Thus, the project represents an opportunity to achieve more than economic
outcomes but an opportunity to strengthen the overall community.
City Plan Objectives
The Project as proposed meets a variety of City Plan objectives, including but not limited to:
Economic Health
EH 1.4 — Target the Use of Incentives to Achieve Community Coals: The project will
achieve broader community goals as described, including redevelopment within a Targeted
Infill Area, infrastructure upgrades, and support of transit.
EH 4.1 — Prioritize Targeted Redevelopment Areas: The Link-N-Greens site is within an
identified targeted redevelopment area in City Plan.
Community and Neighborhood Livability
LIV 5.1 — Encourage Targeted Redevelopment and Infill: The Foothills site is
encompassed by the identified targeted redevelopment areas within City Plan. In addition,
the Project meets the purpose of this principle because it:
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May 7, 2013
0 Promotes the revitalization of existing, underutilized commercial and industrial
areas;
o Concentrates higher density housing and mixed -use development in locations that
will be served by high frequency transit in the future;
0 Promotes reinvestment in an area where infrastructure already exists; and
o Increases economic activity in the area to benefit existing residents and businesses
and may provide the stimulus to redevelop.
LIV 5.2— Target Public Investment along the Community Spine: Additionally, the project
occurs in the identified "community spine, " which has been identified as the "highest
priority area for public investment in streetscape and urban design improvements and other
infrastructure upgrades to support infill and redevelopment and to promote the corridor's
transition to a series of transit -supportive, mixed -use activity centers ".
LIV 21.4 — Provide Access to Transit: The project includes access to bus stops along
College Avenue, Foothills Parkway and Stanford Road. In addition, the Project lies within
a short walking distance of both the Horsetooth and Swallow MAXstops. Furthermore, the
project will include the construction of a pedestrian underpass across College Avenue
facilitating a safe link to MAX and Mason Corridor.
Transportation
T3.3—TransitSupportiveDesign: The proposed Project includes signiicantenhancements
to pedestrian and bicycle connectivity around and thru the site. In addition, the underpass
connection to MAX signifies a major opportunity to connect the Project to the MAX Bus
Rapid Transit system.
Economic Health Strategic Plan
In addition, the project as proposed addresses one of the four goals of the Economic Health
Strategic Plan adopted by City Council in June 2012. This goal is supported by several strategies,
which this project addresses specifically.
Goal 4: Develop community assets and infrastructure necessary to support the region's employers
and talent.
Targeted Infill & Redevelopment: This project falls in a defined targeted and infill area and
delivers a significant redevelopment project as a catalyst in the area.
Midtown Urban Renewal Area
The Midtown Urban Renewal Plan, adopted in 2011 and ratified and confirmed in February 2013,
is intended to stimulate private sector development in the Plan area using a combination ofprivate
and public investment and Urban Renewal Authorityfinancing. Numerous objectives are identified
to guide such investment, and the redevelopment ofFoothills Mall accomplishes several, including:
Facilitate redevelopment by private enterprise through cooperation among developers and
public agencies to plan, design, and build needed improvements.
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May 7, 2013
• Address and remedy conditions in the area that impair or arrest the sound growth of the
City.
• Implement the Comprehensive Plan.
• Redevelop and rehabilitate the. area in a manner which is compatible with and
complementary to unique circumstances in the area.
• Improve pedestrian, bicycle, vehicular and transit -related circulation and safety.
• Contribute to increased revenues for all taxing entities.
Financial Investment Overview
On November 8, 2012, exclusive negotiations between the URA and Walton/Alberta were initiated
under an Agreement to Negotiate. Negotiations with regard to the public financing package have
been occurring since. The publicfinancingpackage includes the dedication offour revenue sources
in the following priority order:
Sources
• Foothills Metropolitan District Capital Mills — The Metro District will pledge 50 mills of
ad valorem real property tax revenue to the bond. This mill levy expires when the bond is
fully repaid or within 25 years, whichever comes first.
• Property Tax Increment — The URA will pledge 100 percent of the annual ad valorem
property tax increment revenue over a 25 year period, less an administrative fee up to a
maximum of 1.5 percent of the gross property tax increment revenue received by the URA.
• Public ImprovementFee — The Developer will impose a I percent Public Improvement Fee
(PIF) on all taxable transactions within the Project and pledge these revenues to the bond.
This revenue source sunsets after 30 years.
• Sales Tax Increment — The URA will pledge 100 percent of the annual sales tax increment
generated above a base by the Project related to the City's 2.25 percent General Fund Sales
Tax rate (the "Core Rate').
The above priority order works such that the first revenue source pledged to bond repayment is the
last revenue source out. Therefore, the Sales Tax Increment Pledge, despite existing for all 25 years,
will begin to release.funds back the City as early as 2018.
Project Cost Summary
The total redevelopment project is estimated to cost $312 million. These costs are split between the
commercial/retail at approximately $230 million or 74 percentand 446anticipated residential units
at a total cost of $82 million or 26 percent. The eligible costs described above total (See Table 1)
approximately $53 million or 17 percent of the total cost and 23 percent of the commercial/retail
costs. The eligible costs represents the target amount of bond proceeds to be generated by the
pledged revenues.
Assumptions
The financial analysis resulting in the public finance investment contemplated in the proposed
Redevelopment and Reimbursement Agreement relies on several key assumptions. Each of these
assumptions is described briefly below:
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May 7, 2013
• Project Timing— The financial analysis assumes.a May 8 "go " date for commencement of
construction activity. This result in a ground breaking in June/July 2013 and substantial
completion of the project in November 2014. Demolition of the old Sears building, and
construction of the new building in place of Sears, along with the residential is not likely to
be complete until sometime in 2015.
• Annual Sales Per Square Foot — The financial analysis assumes $350 per square foot in
annual retail sales once the project stabilizes, assumed to occur in 2016. This assumption
relies on several inputs, including the average annual sales per square foot figure for all
Malls as provided by the International Council of Shopping Centers ($458 per square foot
for 2012). In addition, Economic & Planning Systems provided a full analysis of retail
transfer, inflow and growth, which was used to project the anticipated retail sales level at
the redeveloped mall (See Attachment 4 for more details).
• Occupancy — The financial analysis assumes, based on the construction schedule, that 80
percent of the gross leasable area will be occupied by retail tenants by December 31, 2015.
This number will grow to 95 percent occupancy and remain at this level by December 31,
2016.
• Retail Sales Growth — The financial analysis assumes that retail sales will grow by 2
percent annually. This pace of growth is consistent with historical growth rates in the City
of Fort Collins of 5.4 percent annually since 1990. In addition, this rate falls short of the
historic growth rate of inflation as measured by the Consumer Price Index, 2.9 percent
annually since 1982.
• Property Value Growth — The financial analysis assumes that real property values will
increase by I percent annually. This pace of growth is conservative compared to the
historical growth rate in of real property in Larimer County.
Public Finance Revenue Summary
The Redevelopment and Reimbursement Agreement before the URA Board for consideration
contemplates utilizing the pledged revenues, as described, to support the issuance of a bond by the
Foothills Metro District. The proceedsfrom the bond issuance are intended to pay or reimburse the
eligible costs and to pay cost of issuance. As described, the bond will be supported by four revenue
sources.
The primary revenues supporting the bond will come from the Metro District in the form of annual
ad valorem taxes on real property and a PIF These two revenue sources will generate $50.0 and
$64.7 million respectively between 2015 and 2038, as shown in Table 2, over the 25 year anticipated
life of the bond. In addition, the pledged URA property tax increment will generate approximately
$55.2 million during the same period. By 2017, these three revenue sources will represent $6.4
million in revenue annually, the first full year of stabilized Metro District ad valorem tax, PIF and
property tax increment. Based off the financial analysis, it is anticipated that these three revenue
sources will be able to cover the full debt payment of the bond by the end of 2017.
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May 7, 2013
Table 2
Summary of Public Finance Revenues Generated by the Project, 2015-2038 ($ Millions)
Cumulative Annual
Funding Funding 2017
Metro District Revenue a Years rffa NO Year
District Property Tax $ 5" $ 2L
Sales PIF 6t-7 22
URA PrnpertyTaa Inr enhNnt S!rk2 23
Metro District Funding F $ 169.9 1 $ 6.5
Todars Vaine I $ 62.5
In addition, sales tax increment has been pledged to support the issuance ofa bond. There are three
components to the sales tax generated by the Project, including:
• Base -Existingsales tax revenue generated by retailers in the Mall andsurrounding Project
Area.
• Transfer - Revenue from other areas of the city that shift to the Mall after redevelopment.
• New - The net new revenue, or revenue in excess of base and transfer, associated with the
redeveloped mall project.
In addition, the sales tax revenue can be broken by the various pieces of the effective 3.85 percent
rate. There are two main pieces, including:
• Core City Sales Tax Rate - This corresponds to the long-standing 2.25 percent General
Fund rate.
• Dedicated City Sales Tax Rate - This corresponds to the sum total offour dedicated sales
taxes including: Transportation (0.25 percent), Natural Areas (0.25 percent), Building on
Basics'(0.25 percent), and Keep Fort Collins Great (0.85 percent) dedicated sales tax rates
for a total of 1.60 percent.
The revenue generated by the constituent pieces ofthe Sales Tax rates is summarized in Table 3. The
base, transfer, and new components of the Dedicated City Sales Tax Rate will generate
approximately $104.6 million between 2015 and 2038. In addition, the Core Rate base Sale Tax
Revenue will generate approximately $44.4 million during the same period. Therefore, the total
revenue generated by the project that is not pledged to the bond is approximately $149.0 million.
Table 3
Summary of Sales Tax Revenue Generated
by the Project, 2015-2038 ($Millions)
Sales Tax in 2016
Base
Transfer New
Core Tax - 2.25%
1.8
1.0 2.1
$
4.9
Dedicated Tax 1.6%
1.3
0.7 1.5
$
3.5
$ 3.1
$ 1.7 $ 3.6
$
8.4
Sales Tax in 2018
Base
Transfer New
Core Tax - 2.25%
1.8
1.1 2.2
$
5.1
Dedicated Tax 1.6%
1.3
0.8 1.6
$
3.7
$ 3.
$ 1.9 $ 3.8
$
8.8
May 7, 2013
The Agreement only pledges the transfer and new sales tax revenue related to the Core Rate. Based
on the financial analysis, these sales tax revenues represent approximately $102.7 million or the
anticipated pledge sales tax revenue. However, the Agreement distinguishes between sales tax
pledge and remittance/share. Each item is described below:
Sales Tax Pledge — The Agreement pledges only tax revenues generated by the Core Rate,
only the tax revenue in excess of the base and defines the base as the 12 months prior to the
modification of the Plan to authorize tax increment.
Sales Tax Share/Remittance — The Agreement recognizes that the sales tax pledge is only
the extent necessary to support debt service and reserve contributions after all other revenue
sources contribute completely to support the bond.
Public Finance Package Structure
To better understand the structure of the public finance package, Table 4 summarizes the
anticipated sales tax revenue split between the two rates (Core and Dedicated) by the three
components (Base, Transfer, and New). In 2016, the total pledged sales tax revenue to the project
(identified by the yellow) totals $3.1 million of the approximately $4.9 million generated by the Core
Rate (2.25 percent). The City retains the remaining $5.3 million generated by the unpledged
Dedicated Rate (1.60 percent) and Core Rate base. These numbers increase to $3.3 million in
pledged revenue and $5.5 million in retained revenue by 2018.
Table 4
Annual Summary of Sales Tax Revenue Generated by the Project, 2016 & 2018
Cumulative
Annual
Funding
Funding 2016
City Saks Tax Fevmue
25 Years
First Ful Year
Dedicated Base/ Transfer /New S
104.6
S 35
Core Base
44A
L8
Core Transfer & New
IM-7
3.1
Cky Sales Tax $
251.7
$ 8.4
Today's lfaiie ; $
94.7
As stated, the pledged sales tax revenue serves as the last revenue source to support the issuance
of the bond. Therefore, as the remaining three pledge revenues grow over time the need for pledged
sales tax revenue to support the bonds diminishes to zero. The financial analysis demonstrates this
in the estimated cash flow presented in Table 5.
The bond will likely be issued in 2013 with three yearsofcapitalized interest. Based on forecasts,
revenue will first be available to fund the debt service of the bond in 2015. In 2015, the pledged
revenue sources, excluding the sales tax revenue, will generate approximately $2.1 million towards
bond repayment and reserve contributions. The pledged sales tax revenue will generate an
additional S2.5 million. These two revenue sources combined will generate sufficient revenue (along
with capitalized interest) to cover the debtpayment and reserve contributions required by the bond.
The pledged revenue sources, excluding the sales tax revenue, will grow to $6.5 million in 2017
a
May 7, 2013
largely due to the delay in property tax valuation and collection. The pledged sales tax revenue is
anticipated to grow to $3.2 million. Together, these revenues will cover the debt payment and the
last sizable portion of the supplemental reserve fund contribution.
Starting in 2018, the pledged revenue sources,, excluding sales tax revenue, are anticipated to cover
the debt payment thru the rest of the bond term, which is anticipated to terminate in 2038. As a
result, starting in 2018 the pledged sales tax revenue will not be required to meet debt payments or
reserve contributions. These revenues will, according to the terms of the Agreement, be released
back to the City. At that point, the total sales tax revenue retained by the City will rise to $8.8
million and continue at this rate with 2 percent growth per year. This constitutes a $4.0 million
increase in net new revenues compared to the existing $3.2 million base (both Core and Dedicate
Rates) and estimated $1.6 million in transfer. As a result approximately $8.8 million of the pledge
sales tax is used between 2013 and 2017 to support the debt payment and reserve contributions.
Table 5
Anticipated Public Finance Cash Flow, 2015-2019
($ Millions)
1'EAR
Metro
District
Revenue
Pledged
Sales Tax
Increment
Bond
Payments
&Reserve
Sales Tax
Returned
to Cit
Base &
Dedicated
Sales Tax
City sales
Tax
Revenue
2012
-
49
2015
Ll
25
4.6
-
5.0
SA
2016
23
3A
SA
-
53
5-35
2017
65
32
9.7
-
5-4
SA
2111E
65
33
6D
33
55
SB
2019
L7
34
5.7
3A
5.6
9.0
FINANCIAL / ECONOMIC IMPACTS
Financial Impact to the City
Net Revenue to the City
Thefinancial analysis evaluated the impact of the sales tax pledge over the full25 years of the bond
term. This provides a fuller understanding ofthe impact to the City ofthe sales taxpledge. The total
anticipated sales tax revenue generated by the Core Rate between 2015 and 2038 is approximately
$147 million with $103 million pledged toward the bond issuance (Transfer and New; shown in
yellow), as shown in Table 6. The Dedicated Rate generates approximately $105 million between
2015 and 2038. The grand total of anticipated, sales tax is approximately $252 million.
The estimated new revenue between 2015 and 2038 is approximately $117 million. Subtracting the
estimated $8.8 million in tax used to make debt payments and reserve contributions between 2013
and 2017 leaves approximately $108 million in net new to the City or approximately $4.3 million
annually on average.
M.
May 7, 2013
Table 6
Summary of Sales Tax Revenue Generated by the Project, 2015-2038 ($ Millions)
Sales Tax over 25 years
Base Transfer New
Core Tax - 2.25% �44 35 68 $ 147
Dedicated Tax 1.6% 32 �y r24; _ 49, $ 105
$ 76 $ 59 $ 117 $ 252
Sensitivity/Risk Analysis
Staff has evaluated 3 risk scenarios that are summarized in Table 7.
Scenario I — current assumptions on the District bond assume a non -rated issue with a term of 25
years at a 7% interest rate supported by the four pledged revenues as previously discussed. ff the
interest rate were to increase to 8%, debt service would increase by $17M and cause an SLIM
reduction in the Net New City Revenue,
Scenario II — assumes a 10% reduction in sales per square foot (a reduction from the current
assumption of$350sq. ft. to $315 sq. ft) and a reduction in assessed property values of 10%. Metro
District revenues would decline by $20M, Remitted Sales Tax Revenue would increase by $6M, and
Net New City Revenue would decline by S23M, largely driven by the reduction in sales tax receipts.
Scenario III — assume a 20% reduction in sales per square foot (a reduction from the current
assumption of $350 sq. ft. to $280 sq. ft.) and no change to assumed property valuations. Metro
District revenue would decline by $13M, Remitted Sales Tax Revenue would increase by $2M, and
Net New City Revenue would decline by $35M.
In summary, the most significant risk to the City occurs with from a shortfall in sales per square
foot. As previously stated, staffbelieve the sales per square foot assumption of$350 is conservative
compared with other retail activity benchmark data. ,
Table 7
Summary of Sensitivity Analysis ($ Millions)
Assumptions
Sales per square foot
Property Tax
Cum Bond Pmts & Supp Res
Risk Sensitivity
Metro Revenue
Remitted Sales Tax Revenue
Net New Citv Revenue
7% Interest a% Interest 10% Prop-T.. Base
Base Case Case Reduction -20% Sales Ad'
$350 Sq Ft $350 Sq Ft
Estimate Value Estimate Value
$165 $190'
170 170
$315 Sq Ft $280 Sq Ft
Base less 10% Estimate Value
$165 $165
150 157
_ 15 11
$ a5 $ 73
67
May 7, 2013
Economic Impact Analysis Overview
The Project will generate economic impacts during construction and operations. The construction
activities, occurring while the Developer builds and renovates Foothills, will generate one-time
impact for construction workers and businesses in the area. The on -going operations of the
redeveloped mall and the occupying tenants will create annual economic impacts, employing
workers in the community and supporting additional economic activity throughout the region.
An economic impact analysis prepared by TIP Strategies and ImpactDataSource evaluates the plan
to redevelop the Foothills Mall (Attachment 5). The analysis uses the Project Development Plan
as approved by the Planning & Zoning (P&Z) Board, on February 7, 2013, as the input, assuming
a $312 million project investment and 446 multi family residential units.
The one-time construction activity will support 2,905 workers in the area and support $160.1 million
in new earnings for these works, as shown in Table 8. The redeveloped mall operations represent
the restaurant and retail employment and earnings supported by tenants at the mall. Currently, mall
tenants employ 200-300 workers but employment is trending lower. It is projected that tenants
leasing space in the redeveloped mall will employ a total of 1,200 workers when fully leased. In
total, the mall's operations will support 1,434 total workers and $28.4 million in workers' earnings
annually.
Table 8
Summary of One -Time and Annual Economic Impacts
Construction (One -Time)
One -Time
Jobs
2,905
Earnings
$160,096,05
7
Average Earnings per Job
$55,111
Operations (On -going)**
Annual
Jobs
1,434
Eamings
$28,375,412
Average Earnings per Job
$19,785
In addition to economic impacts, the redevelopment of the mall will generate one-time revenues
collected by the City of Fort Collins. These revenues will be generated by the construction and
renovation investment. Specifically, the redevelopment and construction project will result in sales
and use tax collections, capital expansion fees, building permits and plan check fees. The one-time
revenue from Sales and Use Taxes will total approximately $5.1 million with approximately $4.8
million in construction materials sales and use tax revenue and $197, 000 in sales and use tax from
construction worker spending, as shown in Table 9. The total building permit and plan check fees,
capital expansion fees, utilityfees, and street oversizingfees will total approximately $12.4 million.
M
May 7, 2013
Table 9
Summary of One -Time Fiscal Impacts
Sales and Use Taxes — Construction Materials
Sales and Use Taxes — Construction Worker Spending
Total Sales & Use Taxes
Building Permit & Plan Check Fees
Capital Expansion Fees (Less Credits)
Stormwater, Water & Wastewater Fees (Less Credits)
Street Oversizing Fees
Total Permit, Plan Check, and Fees
ENVIRONMENTAL IMPACTS
Triple Bottom Line Analysis
$4,870,250
$197,245
$5,067,495
$848,414
$3,441,306
$6,332,604
$1,729,600
$12,351,924
City staff prepared a Triple Bottom Line Analysis Map (TBLAM) for the Foothills Mall
Redevelopment Project. The purpose of looking at major projects through a triple bottom line lens
is to identify opportunities and issues in an unbiased and broad way. The TBLAM is not used to
make decisions but rather to identify and work to mitigate issues, to optimize solutions whenever
possible, and to inform decisions. The Mall TBLAM is presented in Attachment 6.
The City of Fort Collins is committed to analyzing major projects using a triple bottom line
approach. Over the next several months, the Sustainability Services Area will be working to identify
and optimize the set of tools and approaches to conduct these analyses in conjunction with the
development of the community sustainability plan.
Carbon Footprint
A carbon footprint analysis is being completed for the Mall Redevelopment Project at City Council 's
request. The analysis will evaluate thefootprintoftheproposed redeveloped mall and compare that
to the footprint of the existing mall and to the existing mall if it were operating under thriving
conditions. A local sustainability engineering consulting firm, The Brendle Group, has been
retained to prepare the analysis in conjunction with City staff. The footprint analysis will be
reviewed and refined at the May 3, 2013 mall charrette and will be provided to City Council by
close of business on May 3rd under separate cover.
Storm Water Quality
The Foothills Redevelopment is required to meet current storm water standards, which will result
in significant upgrades to the site. Runoff will be captured and treated to remove pollutants and
discharged offsite at a much slower rate than the existing condition. The storm water management
and treatment facilities will provide significant reductions in peak rates of runofffrom the site seen
during all storm events. The reductions will create improvements in the environment downstream
of the site such as reductions in the erosion of channels and improved water quality in rivers and
streams that receive the runoff from the site.
Z
May 7, 2013
STAFF RECOMMENDATION
Staff recommends adoption of the Resolution.
BOARD / COMMISSION RECOMMENDATION
The Economic Advisory Commission metApril24 and May 1, 2013 and voted 6-1 to recommend the
following:
"The Economic Advisory Commission believes that the Foothills Mal redevelopment is an
important part of the Fort Collins City Plan and economic vision. As such, the EA supports
the public finance assistance package for the Foothills Redevelopment Project as described by
City staff. As part iof this recommendation ,the EAC highly recommends good faith efforts by
the City in order to understand the full revenue and cost implications for, and to collaborate
with other taxing entities based on forthcoming rigorous analysis of the forecasted and
eventually actual impacts of redevelopment. "
PUBLIC OUTREACH
The following lists outreach associated with all URA actions related to Foothills Mall.
Outreach between 2007-2008
• April 4, 2007 written notification to property owners and business interests
• April 6, 2007published notification in the Coloradoan
April 11, 2007 public open house
• April 17, 2007 City Council meeting, submitting the Existing Conditions Survey to the
Planning and Zoning Board, Poudre School District, and Larimer County
• April 19, 2007 Planning and Zoning Board meeting
• Written notification to taxing entities
May 15, 2007 City Council meeting, adopting the Foothills Urban Renewal Plan
• November 18, 2008 City Council meeting, dissolving the Foothills Urban Renewal Plan
Outreach between 2011-2013
• January 21, 2011 written notification to property owners and business interests
• February 1, 2011 City Council meeting, authorizing staffto prepare an Existing Conditions
Survey
• April 20, 2011 public open house
• May 17, 2011 City Council meeting, submitting Existing Conditions Survey to the Planning
and Zoning Board, Poudre School District, and Larimer County
• May 19, 2011 written notifications to taxing entities
• July 12, 2011 written notification to property owners and business interests
• 2011, general outreach was also provided throughout the year to community organizations,
such as the South Fort Collins Business Association and Chamber of Commerce
• September 6, 2011 City Council meeting adopting the Midtown Urban Renewal Plan
• July 18, 2012 written notification to property owners and business interests (Mall area only)
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May 7, 2013
• November 8, 2012 URA Board meeting, adopting an Agreement to Negotiate with mall
Owner
• December 12, 2012 written notice to property owners and business interests
• December 12, 2012 published notification in the Coloradoan
• February 28, 2013 City Council meeting, reaffirming the Midtown Existing Conditions
Survey and Urban Renewal Plan
• March 28, 2013 written notice to property owners and business interests regarding the plan
amendment
• March 28, 2013 published notification in the Coloradoan regarding the plan amendment
General Outreach on the Financial Investment Package
• Economic Advisory Meeting, Special Session, April 24, 2013 and May 1, 2013 (See
Attachment 8)
• Fort Collins Area Chamber of Commerce, Local Legislative Affairs Committee, April 26,
2013
• Open House for Board and Commission Chairs, April 30, 2013 "
Mayor Weitkunat withdrew from the discussion of this item due to a conflict of interest.
City Manager Atteberry reviewed the objectives of the project: to realize a community vision and
expectations for the site, to launch a catalytic opportunity in the Midtown area, to enhance the
revenue flow for the City of Fort Collins, and to not put the City's balance sheet or credit rating at
risk.
City Manager Atteberry discussed the tenant issues that needed to be resolved. He stated the Sears
eminent domain issue has been resolved and other issues are also close to resolution. He discussed
the tunnel which will be constructed to connect the Mason Street Corridor Bus Rapid Transit to this
site and stated the project will include the Foothills Activity Center, though the location has not
specifically been identified.
Bruce Hendee, Chief Sustainability Officer, discussed the blight study and subsequent Urban
Renewal Authority for the Midtown area. He discussed the City's recommendations for a more
environmentally -conscious plan and identified the results of work in this area, including stormwater
treatment, harvesting and recycling of 100% of the site's asphalt and concrete, a minimum of 50%
deconstruction/construction waste diversion, with a goal of70%, providing electric vehicle charging
stations, certifying the Foothills Activity Center at a LEED gold standard, certifying the parking
structure as LEED silver, and redeveloping an existing asset. Hendee detailed additional
environmental considerations of the project and discussed its carbon footprint.
Mike Beckstead, Chief Financial Officer, discussed the details of the redevelopment and
reimbursement agreement and projected sales tax revenue. He stated staff believes this is a
community -critical project and is a catalytic project for the Midtown area and noted the package is
financed from revenues off the project and not from other revenue streams.
Lloyd Lewis, ARC Thrift Stores CEO, stated ARC has signed an agreement with the Foothills Mall
developer to relocate. The agreement required the developer to provide the consent of the current
landlord to end the current lease. At this point, the developer has not had further contact with the
71
May 7, 2013
landlord and ARC either needs the required consent or a letter of credit in the amount of the
remaining lease payments to secure its ability to sign a new lease. Mr. Lewis requested that this be
a stipulation of approval.
Edie Shur, ARC Leasing Representative, stated an indemnity from the developer needs to be
coupled with ARC's current landlord's consent.
Kevin Jones, Fort Collins Area Chamber of Commerce, supported the business assistance
agreement.
Ty Muirhead, 1631 Maplewood Drive, supported the ARC Thrift Store.
Don Provost, Alberta Development Partners, requested Council support for the business assistance
package.
Judy Greene, 4500 South Stover, supported the ARC Thrift Store.
Carrie Gillis, Fort Collins resident, supported the business assistance package.
Barry Hinkley, ARC Thrift Store District Manager, supported the ARC Thrift Store.
Donna Clark, Fort Collins Marriott Director of Sales and Marketing, supported the business
assistance package.
Cheryl Littlefield, ARC Thrift Store employee, supported the ARC Thrift Store.
Erick Martinez, ARC Thrift Store Vice -President for Retail Operations, supported the ARC Thrift
Store.
Altara Higinbotham, 2627 Arancia Drive, supported the ARC Thrift Store.
Jim Palmer, Fort Collins resident, supported the business assistance package.
Steve Johnson, Larimer County Board of Commissioners, opposed the business assistance package
due to the County aspects.
Tom Balcheck, Fort Collins resident, supported the business assistance package with the caveat that
the needs of ARC be addressed.
Lew Gaiter, Larimer County Board of Commissioners, did not support the business assistance
package nor the use of tax increment financing.
Jim Clark, Fort Collins Convention and Visitors Bureau, supported the business assistance package.
Tom Donnelly, Larimer County Board of Commissioners, requested the item be tabled to allow
further negotiations with the County.
72
May 7, 2013
Eric Sutherland, 3520 Golden Currant, opposed the business assistance package as being a violation
of the City Charter.
Ashley Stiles, Local Legislative Affairs Committee, supported the business assistance package.
Chris Marshall, 926 West Mountain, expressed concern about the potential use of eminent domain
and questioned the ARC Thrift Store dealings.
Frances Owens, ARC Thrift Store Community Relations Director, supported the ARC Thrift Store.
Patrick Edwards, Fort Collins resident, opposed the business assistance package.
Luke McFetridge, South Fort Collins Business Association President, supported the business
assistance package.
Wendie Robinson, ARC of Larimer County Executive Director, supported the ARC Thrift Store.
Cindy Eichler, Foothills Mall General Manager, supported the business assistance package.
Julian Wang, ARC Thrift Store Employee, supported the ARC Thrift Store.
Andy Smith, Fort Collins resident, supported the business assistance package.
Ron Lautzenheiser, North and South Fort Collins Business Associations, supported the business
assistance package.
Steve Lucas, Fort Collins resident, supported the business assistance package.
Ray Martinez, 4121 Stoneridge Court, supported the business assistance package.
Eric Lee, Fort Collins resident, supported the business assistance package.
Spiro Palmer, 7400 Streamside, supported the business assistance package.
Linda Stanley, 2040 Bennington Circle, opposed the business assistance package.
Rob Kauffman, Foothills Mall Counsel, stated the agreement already provides for the concerns of
the ARC Thrift Store.
Clint Skutchan, Fort Collins resident, supported the business assistance package.
Don Butler, Fort Collins resident, supported the business assistance package.
Lucia Liley, ARC Counsel, stated ARC is willing to relocate upon receiving consent from its current
landlord. She also stated ARC is willing to fund the letter of credit if necessary.
Debbie Tamlin, Fort Collins resident, supported the business assistance package.
73
May 7, 2013
Kelly Ohlson, 2040 Bennington Circle, opposed the business assistance package.
Carolyn White, Counsel for the developer and applicant, requested support for the business
assistance package.
(Secretary's note: The Council took a brief recess at this point in the meeting.)
Councilmember Overbeck requested information regarding the City Charter. City Attorney Roy
replied Mr. Sutherland has raised issues regarding several provisions of the City Charter. Upon
staff's examination of these provisions, it is the opinion of the legal team that the transaction being
offered to Council does not violate the Charter.
Dee Wisor, Bond Counsel for the City of Fort Collins, replied this transaction is compliant with the
City Charter and the Colorado Constitution. He cited a Colorado Supreme Court case regarding the
use of tax increment financing by the Denver Urban Renewal Authority in which the Court found
the use of tax increment financing to be valid in Colorado and its use does not create a general
obligation debt of the City. He stated the actions before Council in this item do,not involve a City
debt, do not involve a guarantee by the City, and do not involve an appropriation.
Councilmember Poppaw asked if there is a time period requirement for the construction of the
residential component. Beckstead replied there is a requirement that 200 of the units be started by
2014 and completed by 2015; the remaining 246 units are to be completed by 2017.
Councilmember Poppaw asked about the impact of another regional mall being built in the area.
Beckstead replied that is a difficult theoretical question to answer due to several variables. He noted
the tenant mix expected for the Foothills Mall is planned to differ from that of Centerra.
Councilmember Poppaw asked what percentage of the sales tax is returned to the City should the
mall fail to be successful. Beckstead replied the agreement is structured such that the base bucket
gets filled up first; the City of Fort Collins stays whole relative to its current sales tax projections.
Councilmember Poppaw stated she supports the redevelopment of the mall, but also wants to see
the best possible business assistance package for the citizens. She asked about the City standards
for waste diversion in deconstruction. Hendee replied the City's standards are to recycle 100% of
concrete, asphalt, dirt, bricks and metals and achieve a 70% diversion by weight or volume of all
other materials. He stated the developer has now committed to a 100% recycling of asphalt and
concrete, which takes up a majority of the volume of recycling that would happen on the project.
The developer has also agreed to a goal of 70% diversion for all other materials.
Councilmember Poppaw requested that the developer be required to participate at the level required
by the City. Hendee replied the developer has committed to the 70% diversion of other materials.
Councilmember Poppaw asked why the green energy program purchases are voluntary. Hendee
replied there are opportunities to evaluate additional components and negotiate with the developer.
Councilmember Poppaw requested information regarding the status of the ARC Thrift Store. City
Manager Atteberry suggested the attorneys for both sides respond.
74
May 7, 2013
Councilmember Campana stated there is already an agreement in place in which Alberta would
execute an assignment of the lease. He asked why a letter of credit is coming into play. Ms. Liley
replied the agreement ARC entered into with Walton had a provision that required the developer to
obtain the consent ofARC's current landlord by February 6th. ARC was able to find a new location
on February 21 st; however, the consent of the landlord was never received by the developer and
therefore ARC cannot move forward on the new location. She stated ARC simply needs that
consent from the existing landlord. The letter of credit would ensure ARC has a source of income
to pay should issues arise. Ms. Liley stated ARC needs the consent no later than May 31 st when the
lease option expires, and if that is not received, it needs a letter of credit to ensure it is not put at risk.
Mr. Kauffman stated it is disingenuous to suggest that the parties expected a consent on February
6th. He stated the developer has pursued and has engaged in negotiations with Larimer, ARC's
current landlord. He stated there was never a goal to put ARC at risk and they were never expected
to relocate until the consent was received. Mr. Kauffman stated the developer needs to know what
type of business assistance package it will receive prior to making a deal with Larimer. He stated
a letter of credit for ARC may necessitate the same requirement for other tenants and would interfere
with development of the mall.
Councilmember Poppaw asked if the developer will need to comply with the 2012 Building Code,
given it has yet to be adopted by Council. Hendee replied in the negative but noted the developer
is exceeding the Code for roof insulation, interior lighting, the use of LED light control switches,
and other items.
Councilmember Poppaw asked in what areas the developer is not exceeding the Code requirements.
Hendee replied more work needs to be done on the design before those questions can be answered.
Councilmember Poppaw requested the requirement for Code compliance.
Councilmember Poppaw noted there is no plan for any affordable housing units, but asked about the
possibility of a fee in lieu of that requirement. City Manager Atteberry replied he had proposed a
5% dedication of the units to affordable housing, which was not accepted by the developer;
however, Mr. Provost has agreed to pay an affordable housing impact fee should Council consider
and pass such a fee in the next six months.
Councilmember Conniff stated he too supports the mall redevelopment and commended staff and
Mr. Provost on work on the business assistance package. He asked if sales tax kicks in again should
the property TIF decline to the point where it cannot fully do debt service. Beckstead replied in the
affirmative.
Councilmember Cunniff asked why the PIF is structured in a 30 year timeframe rather than 25 years.
Beckstead replied the developer had requested an indefinite PIF. It was left at 30-year to be
consistent with the Front Range Village PIF.
Councilmember Cunniff asked if the business assistance size and complexity is somewhat related
to the size of the public improvements necessary for the project. • Beckstead replied in the
affirmative and added the complexity is also a function of the way the deal has been structured to
minimize the risk to the City.
75
May 7, 2013
Councilmember Cunniff asked if partial self-financing of the parking garage was ever discussed.
Beckstead replied the intent was to have the garage be publically accessible without a fee.
Councilmember Cunniff noted; there are no other free parking structures in the city and expressed
concern allowing free parking goes contrary to the goal of reduced car miles traveled.
Councilmember Campana noted the fees charged at other city parking structures go toward
operations costs rather than capital costs.
Councilmember Cunniff asked if upside participation had been considered. Beckstead replied he
is unclear as to what exactly Mr. Sutherland was referencing with regard to upside participation;
however, it happens naturally as a result of the net taxable sales at the Mall. City Manager Atteberry
stated the Resolution coming before Council later in the agenda discussing the revenue sharing
process will help address the issue.
Councilmember Cunniff asked if there is an estimate of the square footage to be vacated as a result
of Midtown transfers. Josh Birks, Economic Health Director, replied that has not been calculated
exactly; however, the City is committed to ensuring vacancies last as little time as possible.
Councilmember Poppaw stated the package may be better without the Foothills Activity Center or
pedestrian underpass included. City Manager Atteberry replied it is minus $8 million if the Mason
Corridor underpass is removed, and minus $4.8 million for the Foothills Activity Center. He stated
there may be the possibility of relocating the Activity Center to another area within the District.
Councilmember Poppaw suggested a possible alternative to funding the parking structure. City
Manager Atteberry replied staff has little experience with fee parking in such structures.
Councilmember Campana asked about the applicant's obligation should the Foothills Activity
Center be removed from the project. Birks replied the obligation, of approximately $620,000, kicks
in if there is no longer a facility that meets the need as described.
Councilmember Poppaw clarified her previous suggestion that the Foothills Activity Center not be
included in this package. She suggested relocating the Center to an alternative site. City Manager
Atteberry replied the City will need to find a funding source of $4.8 million, plus the cost of
property, should Council opt to not place the Center in the District.
Councilmember Overbeck asked about the size, scale and significance of the solar aspect of the
project. Hendee replied there is an opportunity for a solar component to be incentivized through the
City's solar program and is currently designed to deliver up to a megawatt per year. He added the
Activity Center could also include photovoltaic options.
Councilmember Overbeck asked about the average occupancy rates of other such malls around the
area. Birks replied staff does not currently have that data, but stated 5% vacancy is a standard
assumption.
CouncilmemberTroxell stated the co -location of the Foothills Activity Center and the tunnel access
to the Mason Corridor are important aspects of the project.
go,
May 7, 2013
Councilmember Troxell made a motion, seconded by Councilmember Campana, to adopt Resolution
2013-042.
Councilmember Cunniff thanked the staff at Alberta and City staff and stated the mall
redevelopment is a critical project; however, he stated the business assistance package does not meet
the standards he expects.
Councilmember Campana disagreed with Councilmember Cunniff and the two had a discussion
regarding whether or not a financial net zero gain would occur and Councilmember Cunniff stated
he would like to see a smaller assistance package.
Councilmember Campana stated he would accept a deal in which the package is reduced by $8
million and the Activity Center and underpass are removed from the financing package, with the
agreement that an Activity Center will be built elsewhere and there will be a safe connection to the
mall property from the Mason Corridor. Councilmember Cunniff replied he may be able to support
that but would not want to vote on that this evening.
Councilmember Troxell stated the package is workable and one or two items that may need
adjusting could be worked on this evening.
Councilmember Poppaw stated she is prepared to vote against the package unless all of the changes
are written down and voted upon. City Manager Atteberry suggested that occur with the issues of
the Activity Center, affordable housing, and other issues.
Councilmember Campana discussed the changes needed from his perspective: recycling of 100%
of concrete as well as asphalt, meeting or exceeding of the City's goals for deconstruction /
construction waste diversion, potentially requiring green energy purchases, meeting the upcoming
City goal regarding affordable housing, granting the flexibility to relocated the Activity Center off -
site but within the URA, requiring the assignment be in place for ARC by May 31 or a letter of
credit will be posted, and requiring further discussions regarding the sharebacks with the County and
other taxing entities.
(Secretary's note: The Council took a brief recess at this point in the meeting.)
Deputy City Attorney Daggett described her suggested amendments to the Resolution language.
Councilmember Poppaw made a motion, seconded by Councilmember Campana, to adopt the
suggested language related to an affordable housing component or payment in lieu of that
component, according to the affordable housing policy that will be put in place citywide.
Ms. White stated the developer is prepared to agree generally to the concept that is being proposed
regarding the affordable housing policy.
The vote on the motion was as follows: Yeas: Campana, Overbeck, Troxell, Horak, Cunniff and
Poppaw. Nays: none.
THE MOTION CARRIED.
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May 7, 2013
City Manager Atteberry stated the applicant has agreed to voluntarily apply the 2012 Building Code
as long as there are no local amendments to that Code.
Councilmember Poppaw clarified there may be local amendments made; however, the developer
will not be required to comply with those.
Councilmember Poppaw made a motion, seconded by Councilmember Cunniff, to adopt the
suggested language regarding compliance with the 2012 International Building Code.
The vote on the motion was as follows: Yeas: Overbeck, Troxell, Horak, Cunniff, Poppaw and
Campana. Nays: none.
THE MOTION CARRIED.
City Manager Atteberry suggested discussing amending the public improvement fee duration from
thirty years down to twenty-five years.
Ms. White stated the developer would agree, so long as the district bonds are outstanding.
Councilmember Conniff made a motion, seconded by Councilmember Poppaw, to adopt the
suggested language regarding amending the public improvement fee duration. Yeas: Troxell, Horak,
Conniff, Poppaw, Campana and Overbeck.
THE MOTION, CARRIED.
Hendee suggested language relating to the standards used by the City of Fort Collins Operation
Services Department for waste diversion requirements for deconstruction and construction.
Councilmember Poppaw made a motion, seconded by Councilmember Cunniff, to adopt the
suggested language related to waste diversion.
Ms. White stated the developer is willing to agree to that amendment.
The vote on the motion was as follows: Yeas: Horak, Conniff, Poppaw, Campana, Overbeck and
Troxell. Nays: none.
THE MOTION CARRIED.
Hendee read the other environmental conditions to which the developer has agreed: dust control,
construction equipment emissions control, waste diversion during construction, consideration of on -
site renewables, consideration of sustainable and local building materials, incorporation of low -
energy use lighting wherever possible, ensure low or no VOC-emissions products are used,
encourage installation of plug-in electric vehicle charging stations, minimize the use of asbestos
containing materials, water conservation, minimize of prohibit vehicle idling on the mall site, master
plan for waste diversion from mall operations and public use, multi -family recycling, recycling
depots, public recycling containers, food scraps, use compostable materials at the food court, use
of recycled materials, build -in ease of future deconstruction, soil amendments, use of native plants,
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May 7, 2013
increased transplanting of trees, creation of an underpass from the mall site to MAX BRT, locate
additional bike racks and lockers at the mall and near bus stops, and citizen and visitor education.
Councilmember Poppaw noted the developer has already agreed to the installation of two electric
vehicle charging stations and additional conduit.
Councilmember Poppaw made a motion, seconded by Councilmember Overbeck, to adopt the
inclusion of the language as outlined by Hendee.
Ms. White stated the developer agrees to all the items.
Yeas: Cunniff, Poppaw, Campana, Overbeck, Troxell and Horak. Nays: none.
THE MOTION CARRIED.
Hendee suggested discussing the green power purchase program. He stated a commitment by the
developer of one percent per year would equate to about a $300,000 additional cost per year.
Councilmember Troxell stated he would rather see an investment in the infrastructure as opposed
to an ongoing operational expense of the green power.
Councilmember Conniff stated he is hesitant to require specific green energy program purchases as
technology and the City's program are evolving rapidly.
Hendee stated his last item is consolidation of recycling and trash services to one company.
Councilmember Conniff stated he would prefer that a single provider be used for construction and
operation. Hendee replied that may be difficult given the types of items which will be hauled away
for recycling during construction. Councilmember Conniff stated he would accept the original
suggestion relating to operations.
Ms. White stated the developer is willing to agree to that amendment for the portions of the property
for which he is in charge of operations; however, there will be two large retailers on site which will
have control over their own trash operations.
Councilmember Conniff made a motion, seconded by Councilmember Poppaw, to adopt the
suggested language relating to a single trash and recycling provider for the portions of the project
over which the developer has control. Yeas: Conniff, Poppaw, Campana, Overbeck, Troxell and
Horak. Nays: none.
THE MOTION CARRIED.
City Manager Atteberry stated staff is of the opinion that the conversation relating to sharebacks
should be based on data and should be expanded to future annexations. He noted Item No. 31 is a
Resolution related to this issue and will create the dialogue with the County with a time constraint
of the end of the year.
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May 7, 2013
City Manager Atteberry outlined the other taxing entities: the Library District, the Health District,
the Water Conservation District, pest control, and Foothills Gateway. Birks noted the Foothills
Gateway mill dedication is actually a subset of the County's mills.
County Commissioner Gaiter stated the Board of County Commissioners is willing to trust Council,
but is very cautious.
Councilmember Cunniff noted the stated intent in the Resolution is to reach a mutually beneficial
agreement. County Commissioner Gaiter expressed concern regarding the inclusion of future
annexations in this deal.
Deputy City Attorney Daggett discussed her proposed language for an amendment regarding the
Foothills Activity Center. She stated the language requires that the Activity Center not be located
on the mall property but elsewhere on a property to be identified within the Urban Renewal Area.
City Manager Atteberry noted the use of reserves or General Fund would be required for a property
purchase. The metro district's $4.8 million would then be used to build the facility.
Councilmember Campana suggested language which would allow the flexibility for the Activity
Center to be on or off the mall property.
Councilmember Cunniff agreed and noted there may be another location on the site that would not
attach the Activity Center to the mall itself.
Ms. White noted the four revenue streams available to pay for the Activity Center each carry with
them their own legal constraints on how they can be spent. Should a location be selected that is not
compatible with any of those revenue streams, either the financing has to be completely separated
or the revenue streams cannot be used. She stated the developer is willing to engage with the City
in an examination of potential alternative locations.
Mayor Pro Tern Horak asked about the aspect of potentially leaving the Activity Center on the
property but not attached directly to the mall. Ms. White replied the design was intentionally
developed to allow connectivity between the mall and the Activity Center, per the request of the
City.
Councilmember Troxell stated the Activity Center is important to the project and the developer
should have the opportunity to integrate it into the project per the City's requirements.
City Manager Atteberry stated other Councilmembers have expressed concern regarding the co -
location with the mall, as the facility is one that will ultimately be operated by the City. He
committed to Council that he will consult with them regarding potential options.
Deputy City Attorney Daggett suggested modifying the redevelopment and reimbursement
agreement to allow for the evaluation of other possible locations for the Foothills Activity Center,
both on the mall property and in other locations in the Midtown Urban Renewal Area, and to provide
for modification to the amount of the District bonds and the list of eligible improvements based on
the final outcome of that investigation and planning process.
May 7, 2013
Ms. White stated the developer can accept that wording but would like to add a stipulation that this
will not add additional delay to the project.
Councilmember Campana made a motion, seconded by Councilmember Poppaw, to adopt the
suggested language relating to the Foothills Activity Center. Yeas: Poppaw, Campana, Overbeck,
Horak and Cunniff. Nays: Troxell.
THE MOTION CARRIED.
Councilmember Conniff stated he would ultimately like to discuss the 100% TIF situation relating
to the Urban Renewal Authority.
(Secretary's note: The Council took a brief recess at this point in the meeting.)
Mr. Kauffinan stated ARC has the current option to lease the new space through the end of May.
The consent of the new landlord will be obtained to extend that option on a monthly basis. The cost
of extending that option through September will be split; and if the extension or consent are unable
to be obtained, the developer is agreeing to put up the letter of credit at that time.
Ms. Liley stated ARC would like to ensure this is a condition of the City's redevelopment agreement
with the developer so it will be tied to the City's commitments under that agreement.
Deputy City Attorney Daggett suggested requiring that the redevelopment and reimbursement
agreement be revised to require that, in order for the developer to not be in default and for all
requirements and commitments to continue under the agreement, the developer shall follow through
with the commitments as described at this meeting. Additionally, the Resolution could direct that
staff describe those details in the redevelopment agreement, but not necessarily in this motion. She
suggested the motion to amend include the following wording: the agreement shall be revised in
order to provide that the developer is obligated to carry out the terms of the agreement with ARC
Thrift Stores to be described in detail consistent with the manner in which that arrangement was
described in the record of tonight's meeting.
Councilmember Poppaw made a motion, seconded by Councilmember Campana, to adopt the
suggested language relating to the ARC Thrift Store.
Mayor Pro Tem Horak noted both Mr. Kauffman and Ms. Liley agreed to such wording.
The vote on the motion was as follows: Yeas: Campana, Overbeck, Troxell, Horak, Cunniff and
Poppaw. Nays: none.
THE MOTION CARRIED.
Hendee stated an agreement regarding a tenant criteria manual has not yet been discussed. He stated
that manual would detail specific existing City Code requirements that may apply to tenant finish
projects and highlight goals and objectives for tenant opportunities for sustainable projects.
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May 7, 2013
Councilmember Poppaw made a motion, seconded by Councilmember Overbeck, to adopt the
suggested language relating to a tenant criteria manual. Yeas: Overbeck, Troxell, Horak, Cunniff,
Poppaw and Campana. Nays: none.
THE MOTION CARRIED.
Councilmember Cunniff stated he is still somewhat uncomfortable with the assistance package;
however, he expressed appreciation for the negotiations that have occurred and stated there may not
be a better deal forthcoming.
Councilmember Poppaw expressed appreciation for staff work and the agreements made with
Alberta.
Councilmember Campana expressed appreciation for work on the item.
CouncilmemberTroxell expressed appreciation for Alberta and their willingness to make this a great
project for Fort Collins. He thanked City Manager Atteberry and staff for work on the item.
Councilmember Overbeck expressed appreciation for work on the item.
The vote on the motion to adopt Resolution 2013-042, as amended, was as follows: Yeas: Troxell,
Horak, Cunniff, Poppaw, Campana and Overbeck. Nays: none.
THE MOTION CARRIED.
Suspension of the Rules
Councilmember Conniff made a motion, seconded by Councilmember Poppaw, to suspend the rules
and extend the meeting past 12:00 a.m. in order to consider the remaining three items on the agenda.
Yeas: Horak, Cunniff, Poppaw, Campana, Overbeck and Troxell. Nays: none.
THE MOTION CARRIED.
Public Hearing and Resolution 2013-043 Making Legislative
Findings and Approving Amendments to the Midtown Urban Renewal
Plan to Establish the Foothills Mall Tax Increment District, Adopted
The following is the staff memorandum for this item.
"EXECUTIVE SUMMARY
City Council adopted the Midtown Urban Renewal Plan (Plan) in Seplember,2011 and later
reaffirmed and ratified the Plan in February 2013. With the sale of Foothills Mall to Walton
Foothills Holdings, IVLLC (Owner) in July 2012, and subsequent Agreement to Negotiate between
the Owner and the City, City Council will be considering a public financing package to assist with
the substantial redevelopment of the mall. Tax incrementfinancing (TIF) is one component of that
financing package; however, in order to utilize TIF, City Council must first amend the Midtown
Urban Renewal Plan and create a new Foothills Mall TIF District.
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May 7, 2013
BACKGROUND /DISCUSSION
The Fort Collins Urban Renewal Authority (URA) was created by City Council in 1982 to prevent
and eliminate conditions in the community related to certain "blight factors ", as defined in Sections
31-25-101, et seq., Colorado Revised Statutes (the Urban Renewal Law). Using tax increment
financing (TIF), the URA is able to leverage public and private investment to remediate blight,
which is complimentary to the City's broader goal ofpromoting redevelopment and injill in targeted
areas. Midtown Fort Collins has been identified as one of these targeted areas for infill and
redevelopment, primarily because it includes a significant portion of the College Avenue
commercial corridor and the Mason Corridor, collectively referred to as the "community spine "
in City Plan.
In 2011, the URA conducted an Existing Conditions Survey (Survey) for Midtown and found seven
of the eleven statutory blight factors present in the area. In September of that year, City Council
accepted the Survey and adopted the Midtown Urban Renewal Plan. The strategy for the use of TIF
in Midtown is different than the North College Urban Renewal Plan area; rather than collecting TIF
throughout the entire area at once, Midtown will have separate TIF Districts that will be created
as significant projects redevelop. Prospect South is the first TIF District that was created for
Midtown, and was done so at the same time the Plan was adopted in September 2011.
In July 2012, Foothills Mall and adjacent property was purchased by Walton Foothills Holdings
IV, LLC (Owner) with the intent to complete a significant redevelopment. An Agreement to
Negotiate was executed between the Owner and the City in November 2012, and discussions with
regard to a public financing package have been occurring since. One component of the package
is TIF via the URA.
In order to utilize TIF for this project, City Council must first amend the existing Plan and create
a new TIFDistrict. A copy of the existing Plan (adopted in September 2011, reaffirmed and ratif ed
in February 2013) is provided as Attachments 1. The amended Plan is attached as Exhibit "A" to
the Resolution. The amended Plan includes the boundary for the proposed Foothills Mall TIF
District, and several minor text editsladditions.for clarification purposes. If the amended Plan is
adopted, the 25 year TIF clockfor the District would begin immediately, meaning the URA would
collect incremental tax revenue until 2038.
FINANCIAL /ECONOMIC IMPACTS
Adopting the Resolution enables the URA to pledge sales and property tax increment towards the
redevelopment of Foothills Mall. This project is estimated to generate approximately $I17 million
in new revenue between 2015 and 2038.
ENVIRONMENTAL IMPACTS
This Resolution has no direct environmental impacts.
STAFF RECOMMENDATION
Staff recommends adoption of the Resolution.
May 7, 2013
BOARD / COMMISSION RECOMMENDATION
The Planning and Zoning Board held a public hearing on May 6, 2013 and determined that the
amended Plan conforms to the principles and policies identified and City Plan.
PUBLIC OUTREACH
Notice was provided in accordance with Urban Renewal Law to all property owners, residents, and
business interests within the Midtown Urban Renewal Plan area and Lorimer County, as well as
published, more than 30 days prior to this meeting date.
The URA also provided an Impact Report to Lorimer County in accordance with Urban Renewal
Law in January 2013. See Attachment 2 for the complete Impact Report."
Eric Sutherland, 3520 Golden Currant, argued the City of Fort Collins should have no say as to how
tax increment is collected.
Jim Palmer, South Fort Collins Business Association, supported the Resolution.
Councilmember Troxell made a motion, seconded by Councilmember Overbeck, to adopt
Resolution 2013-043, including the amended agreement in Exhibit A. Yeas: Cunniff, Poppaw,
Campana, Overbeck, Troxell and Horak. Nays: none.
THE MOTION CARRIED.
Public Hearing and Resolution 2013-044 Approving an
Amended Service Plan for the Foothills Metropolitan District, Adopted
The following is the staff memorandum for this item.
"EXECUTIVE SUMMARY
The new owner of Foothills Mall Alberta Development, in partnership with Walton Street Capital,
requested the formation of a Metropolitan District as allowed by Title 32 of the Colorado Revised
Statutes in August 2012. On September 4, 2012, Council approved, by Resolution 2012-084, a
Service Plan forFoothills Metropolitan District (the "District'), providing a preliminaryframework
for operations of the District. The approval included the requirement to amend the District service
plan prior to constructing improvements, establishing mill levies, or issuing debt by the District. The
Resolution before City Council amends the District Service Plan (the "Amended Service Plan') to
operationalize significant components of the Redevelopment and Reimbursement Agreement (the
"Agreement') between the City, Fort Collins Urban Renewal Authority, Walton Foothills Holdings
VI, L.L.C. and the Foothills Metropolitan District considered by Resolution 2013-044.
May 7, 2013
BACKGROUND/DISCUSSION
"BOTTOM LINE"
The action contemplated by the City Council on May 7 approves an amendment to the existing
Service Plan for the District. The Amended Service Plan authorizes the maximum amount of debt
allowed, the mill levy maximums, and other aspects of the operations of the District. The Amended
Service Plan is consistent with the terms of the Redevelopment and Reimbursement Agreement (the
"Agreement') considered for approval by Ciry Council by Resolution 2013-044 on May 7.
Project Description
Alberta Development Partners, in partnership with Walton Street Capital (the "Developers'),
intend to undertake a comprehensive redevelopment ofthe Foothills Fashion Mall (the "Project').
The redevelopment will include a mixed -use redevelopment with a commercial/retail component
(734,979 square feet), a commercial parking structure and up to 800 multi family dwelling units on
76.3 acres.
Retail
The project proposes to deconstruct portions of existing Foothills and renovate the remaining
original structure, for a 388,084 square foot, one -level, enclosed shopping mall. In addition, various
free standing buildings including the Commons At Foothills Mall Building, the Shops at Foothills
Mall buildings, The Plaza at Foothills Mall, the Corner Bakery, Christy Sports and the Youth
Activity Center building would all be deconstructed. In their place, eight new retail buildings are
proposed along South College Avenue, rangingfrom 9,300 square feet to 31, 715 square feet in size.
Internal to the site, five new retail building are proposed to be located northwest of the existing
enclosed mall. These five building range from 7, 636square feet to 12, 000 square feet in size. To the
southeast of the existing mallfour new restaurants are proposed ranging in size from 8,088 square
feet to 124, 000 square feet as well as a new, two-story 24, 000 square foot Foothills Activity Center
to replace the Youth Activity Center. Additionally, a new 86,754 square foot entertainment and
theater building is proposed located southeast of the new restaurants. The large east green area and
smaller west green plazas anchor the pedestrian network. The commercial component provides a
total of 3,581 parking spaces via a six level, 84,663.foot parking structure and surface parking
spaces.
Residential
The residential component of the project proposes up to 800 multi family units distributed among
five buildings that will include a mix ofstudio, one, two, and three bedroom units. Current plans call
for the construction of446 residential units. The residential component ofthe project includes 1,422
parking space via three separate subterranean structures (858 spaces), an above ground structure
(472 spaces) and 92 open surface parking stalls. The residential buildings will range in height from
two- to five -stories. Generally, the residential building heights get taller as the project develops
from the north to souih along Stanford Road.
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May 7, 2013
What is a Metropolitan District?
Title 32 of Colorado Revised Statues allows.for the formation of a variety of Special Districts,
including a Metropolitan District as proposed for Foothills Mall. Special Districts in Colorado are
local governments, i.e., political subdivisions ofthe state, which make up a third level ofgovernment
in the United States. (The federal and state governments are the other two levels.) Local
governments the third level include counties, municipalities (cities and towns), school districts, and
other types ofgovernment entities such as "authorities" and "special districts. "
Statute requires that a Metropolitan District develop a service plan that outlines the Public
Improvements and services that the district will provide. The service plan must be submitted to the
City Council for approval. After City Council approval the district holds an organizing election. The
organizing election may occur at several times throughout the year. However, the TABOR required
election must occur at either a State General Election (November) or a regular election (May).
City Metropolitan District Policy
On July 9, 2008 City Council adopted a Policy_for Reviewing Proposed Service Plans for Title 32
Metropolitan Districts (the "City Policy'), setting forth criteria to be considered when a service
plan is submitted.for consideration. As the City Policy states, it is "intended as a guide only ... [and
shall not] be construed to limit the discretion of City Council. " Therefore, City Council can, at its
discretion, approve a service plan that serves a purpose not anticipated by the City Policy.
The Developer has submitted an Amended Service Plan for the District that operationalizes the
construction of public improvements, issuance of debt in the, form of a bond, and other aspects of
the Agreement as necessary. The Amended Service Plan does not conform with the City's adopted
Policy for Reviewing Proposed Service Plans for Title 32 Metropolitan Districts (the `City Policy"
Resolution 2008-069). However, the AmendedServicePlan does conform in all necessary ways with
the Agreement considered by City Council and the URA for the purpose of encouraging the
redevelopment of Foothills Mall.
Although the Amended Service Plan does not conform to the City Policy, several of the key criteria
are discussed nonetheless:
• Provide public improvements resulting in enhanced benefits to existing or future
businesses. A comprehensive Foothills Mall redevelopment will reinvigorate the larger
Midtown area by attracting additional consumers. This benefit will likely accrue benefit to
adjacent properties and retailers. The District will provide Public Improvements necessary
to realize the Project.
• Primarily commercial use. The Project is anticipated to include primarily commercial
development with some residential rental development.
• Enhance the quality of development in the City. As indicated in the project vision the goal
is a vibrant and engaging residential destination that will likely help enhance the quality of
Midtown area retail offerings.
• Max Mill Levy. The max mill levy as proposed is 65.000 mills with 50.000 mills intended
for debt and 15.000 millsfor operations and maintenance of theDistrict. The Redevelopment
and Reimbursement Agreement stipulates that the operating mill leiy is limited io 10.000
mills unless otherwise approved by the City Manager.
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May 7, 2013
Debt & Financial Projections. The Amended Service Plan allows for the issuance of an
aggregate principal amount sufficient to generate net proceeds of bonds in the amount of
$53.0 million. Any bond issuance by the District is subject to all the conditions precedent
stipulated in the Agreement. The financial projections of theAmended Service Plan support
the issuance of debt in this amount.
Multiple -District Structures. The current Service Plan does not contemplate a multiple -
district structure.
FINANCIAL / ECONOMIC IMPACTS
The City and URA will bear no liability ofthe debt issued by the District. The extent of the financial
impact to the City or URA by the formation of the District is the pledge or revenues stipulated in the
Agreement.
ENVIRONMENTAL IMPACTS
Please refer to the environmental impacts described in the Agenda Item Summaryfor Resolution
2013-042 related to the Redevelopment and Reimbursement Agreement_for the redevelopment of
Foothills Mall.
STAFF RECOMMENDATION
Staff recommends adoption of the Resolution.
PUBLIC OUTREACH
Public notice of the Service Plan was provided consistent with Colorado Revised Statutes.
City Manager Atteberry noted Council has received a modified version of this item in the read -
before packet.
Deputy City Attorney Daggett discussed the general purpose of the various changes to the item.
Eric Sutherland, 3520 Golden Currant, stated the City Charter provides that this Council cannot
contractually obligate the taxes of future Councils.
City Attorney Roy noted counsel unrelated to the City of Fort Collins provided an opinion on this
item.
Councilmember Troxell made a motion, seconded by Councilmember Overbeck, to adopt
Resolution 2013-044, as modified and including the amended agreement. Yeas: Cunniff, Poppaw,
Campana, Overbeck, Troxell and Horak. Nays: none.
THE MOTION CARRIED.
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May 7, 2013
Resolution 2013-045
Regarding the Redevelopment of Foothills Mall and Regarding
Cooperation and Partnership with Larimer County on Economic
Revitalization Efforts and the Use of Tax Increment Financing, Adopted as Amended
The following is the staff memorandum for this item.
"EXECUTIVE SUMMARY
In an effort to address some of the concerns raised by Larimer County with regards to the use of tax
increment financing, the proposed resolution directs the City and the Urban Renewal Authority
(URA) to remit an amount equal to 50% of the property tax increment generatedfrom the residential
units associated with the Foothills Mall redevelopment project in each year that those funds are
available after payment ofdebt service requirements for the District Bonds, as well as the personal
property tax increment revenues from the Mall. _
BACKGROUND /DISCUSSION
Representatives of the City of Fort Collins and Larimer County have been engaged,for several
months in a discussion of the potential impacts to the County of the use by the City and the URA of
tax increment financing, and in particular, for the Foothills Mall redevelopment project. Both the
City and County agree that the redevelopment ofthe Foothills Mall is important to both the City of
Fort Collins and Larimer County because of the public benefits such a project will provide the
citizens, including blight remediation, civic pride, premier regional shopping and entertainment
opportunities, and an increase in community investment.
Furthermore, the City and the URA recognize that residential development generally is expected to
have greater impact on County services than commercial development. Given that the Foothills
Mall redevelopment includes a substantial residential component, the City agrees to remit an
amount equal to 50% of the property tax increment generated from the residential portion of the
project in each year that those funds are available after payment of debt service requirements for
the District Bonds, subject to annual appropriation. The Resolution authorizes the Mayor to execute
an intergovernmental agreement to carry out this commitment.
Additionally, the CityManager will workwith the Authority and the County to develop an agreement
through which the Authority will agree to remit to the County the portion of the property tax
increment received by the Authorityfrom the Foothills Mall that represents the County's share of
the personal property tax increment paid from the Foothills Mall. The County will be required to
provide an accounting reasonably satisfactory to the City and the Authority of both personal and
real property tax collected, at the County ,s cost.
The potential fiscal impacts to the County resulting from the use of tax increment financing are
analyzed by a jointly developed fiscal impact model. A number of the assumptions within the fiscal
impact have come into question, and there is a desire for an impact analysis model that allows for
a more robust and holistic analysis. To this end, the City and the URA have agreed to work
cooperatively with the County and, to the extent practicable, with other municipalities in the County,
to develop an appropriatefiscal impact analysis model for evaluatingfhnancial impacts associated
with the formation of tax increment financing districts, the redevelopment of lands within the city,
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May 7, 2013
and the annexation ofproperty into the city that will support further discussions with the County
regarding these issues. The Mayor is also authorized to execute an intergovernmental agreement
to carry out this joint study.
FINANCIAL / ECONOMIC IMPACTS
This proposal will result in less revenue available to the URA to pledge to the Foothills Mall
Redevelopment bond repayment.
STAFF RECOMMENDATION
Staff recommends adoption of the Resolution. "
County Commissioner Gaiter stated the Commissioners are ready to meet with Council in order to
begin this process.
Councilmember Troxell made a motion, seconded by Councilmember Poppaw, to adopt Resolution
2013-045, as modified.
Councilmember Troxell requested that the County provide the City with its economic development
strategy and encouraged a discussion in a broad context.
The vote on the motion was as follows: Yeas: Poppaw, Campana, Overbeck, Troxell, Horak and
Cunniff. Nays: none.
THE MOTION CARRIED.
Other Business
Councilmember Cunniff made a motion, seconded by Councilmember Overbeck, to adjourn to May
14, 2013, to consider any additional business that may come before the Council, including a possible
Executive Session. Yeas: Campana, Overbeck, Troxell, Horak, Cunniff and Poppaw. Nays: none.
THE MOTION CARRIED.
Adjournment
The meeting adjourned at 2:20 a.m., Wednesday, May 8.
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