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HomeMy WebLinkAboutMINUTES-09/27/2016-AdjournedSeptember 27, 2016 COUNCIL OF THE CITY OF FORT COLLINS, COLORADO Council -Manager Form of Government Adjourned Meeting — 6:00 PM • CALL MEETING TO ORDER • ROLL CALL PRESENT: Martinez, Stephens, Overbeck, Campana,`Troxell, Cunniff, Horak Staff present: Atteberry, Daggett, Winkelmann Public Hearing and Resolution 2016-075 Approving the Block 23 Metropolitan District Nos. 1 and 2 Service Plan. (Adopted) The purpose of this item is to consider the Consolidated Service Plan for Block 23 Metropolitan District Nos. 1 and 2. The intent of the proposed Block 23 Metropolitan District Nos. 1 and 2 Qointly, the Districts) is to eventually provide public improvements (primarily a parking structure) that facilitates and makes possible a mixed -use project on Block 23 that is in keeping with planning and community objectives for a development in downtown Fort Collins. The primary purpose of the Districts is to finance, construct, acquire, own, operate, and maintain those public improvements. This action establishes a preliminary framework service plan to allow the Districts to be created, but not to begin financing and construction of the proposed public improvements. This approach provides limited authorization that allows the proposed Districts to move forward with a November election, while preserving and calling for future review and consideration. by the City Council of an amended service plan. Patrick Rowe, Redevelopment Program Coordinator, stated Block 23 is located north of 281 North College. The proposal for the property is for a 7-story mixed -use project, which would include retail, office and residential uses, as well as a parking structure. A metro district is a quasi -governmental entity that has the authority to levy property taxes, issue debt and charge for services. Metro districts are commonly used in development as a public financing tool to aid in financing gaps and alleviate development constraints. The organization of a metro district is conducted within district court and is started via a petition for organization. An organization and TABOR election will then be conducted. The purpose of the Block 23 Metro District is to address site constraints and provide enhanced development outcomes consistent with City plans. The initial service plan received by the City included proposed improvements such as potable water, sewer storm systems, streets, parking structure and park and trail improvements, with an initial cost estimate of approximately $15 million, $10 million of which is for the parking structure. The project is slated to be 85.5% commercial and 14.5% residential, which exceeds the City's preference of no more than 10% residential. Josh Birks, Economic Health Director, discussed the initial service plan received by the applicant and noted staff is proposing a limited, or shell service plan primarily due to the amount of time staff had to review the full application, and due to some of the open questions. Moving forward with a limited service plan allows for more time to address the parking issue and to complete a more thorough financial and engineering review. The limited service plan would allow the applicant to move forward with an organizational election to be held at a TABOR -qualified election this fall. This limited plan does not allow for the metro district to levy any tax, impose any fee, incur any debt, or build any public improvements at this time. City of Fort Collins Page 109 September 27, 2016 Eric Sutherland discussed the placement of a metro district inside a TlF area and stated half of any property tax levied by the metro district would go to the DDA. Council member'Overbeck asked about the overlap between the URA and the metro district. Birks replied staff is aware that 50% of any collected property tax would be remitted to the DDA. The City and the DDA could consider participating in a project that would take place on Block 23, particularly to achieve public parking. Councilmember Overbeck asked how many residential units are proposed. Birks replied about 180 units are currently planned; however, the project is still in a conceptual design phase. Councilmember Overbeck asked about the parking lease price and duration. Birks replied those items have not yet been determined. Councilmember Overbeck asked how boards and commissions will interact with metro districts. Birks replied boards and commissions have not historically had a role interfacing with the metro district boards themselves; however, it will be recommended that appropriate boards and commissions are addressed as part of the service plan amendment. Councilmember Overbeck discussed the importance of including input from several boards and commissions so as to keep metro districts from creating disconnected enclaves within the city. Birks noted metro districts must comply with all applicable Land Use Code and City Code standards for any type of development, including cell towers. Councilmember Overbeck asked if metro districts set their own policies with respect to mosquito control. Birks replied the service plan dictates what a metro district can and cannot do; Council ultimately approves the service plan which guides the metro district. Councilmember Overbeck asked how affordable housing will be part of the metro district. Birks replied the metro district would be subject to the same requirements as any other development in the city. There is currently no affordable housing requirement; however, that could possibly be stipulated in the service plan. Councilmember Cunniff asked if.removing this area from the DDA has been contemplated. Birks replied it has not been contemplated but could be examined. Councilmember Cunniff encouraged the consideration of that possibility as it may help better achieve the purposes of the district. Councilmember Cunniff asked about the difference in assessment rate between the residential and commercial uses. Birks replied commercial uses are assessed at close to four times as much as residential uses and the City's policy requires a financial plan as part of the full service plan. Councilmember Cunniff asked who are eligible electors for the election. Birks replied the land holders are the eligible electors. John Duval, Deputy City Attorney, replied the property owners are the only eligible voters at this time; however, once residents move in, they would be eligible to vote in future elections. Councilmember Cunniff asked about the form of government for metro districts: Duval replied this limited service plan form of government gives the metro district the ability to exist and move forward with an election to form the district; however, no taxes can -be imposed or debt issued City of Fort Collins Page 110 September 27, 2016 until the amended service plan is approved by Council. The governing board would be elected by the eligible electors of the district. Councilmember Campana stated this could be a creative way of accomplishing goals of the city. Mayor Pro Tern Horak made a motion, seconded by Councilmember Martinez, to adopt Resolution 2016-075. Councilmember Overbeck stated he would support the motion but encouraged consideration of the metro district supporting the transportation system, appropriately handling waste and recycling, and maintaining the City's gold standards in terms of neighborhood beauty. Mayor Pro Tern Horak stated he would support the motion and suggested the examination of metro district policy objectives and boards and commissions engagement. Councilmember Overbeck suggested the formation of a metro district committee. RESULT: RESOLUTION 2016-075 ADOPTED [UNANIMOUS] MOVER: Gerry Horak, District 6 SECONDER: Ray Martinez, District 2 AYES: Martinez, Stephens, Overbeck, Campana, Troxell, Cunniff, Horak 2. Public Hearing and Resolution 2016-076 Approving the Consolidated Service Plan for Harmony 1-25 Metropolitan District Nos. 1-3. (Adopted) The purpose of this item is to consider the Consolidated Service Plan for Harmony I-25 Metropolitan District Nos. 1-3. The intent of the proposed Harmony 1-25 Metropolitan District Nos. 1-3 (collectively, the Districts) is to eventually provide public improvements that enable a 260-acre coordinated development project that will feature residential, retail, office, warehouse/flex space, and hotel components. The primary purpose of the Districts is to finance, construct, acquire, own, operate, and maintain those public improvements. This action establishes a preliminary framework, but limited, service plan to allow the Districts to be created, but not to begin financing and constructing the proposed public improvements. This approach provides limited authorization that allows the proposed Districts to move forward with a November election, while preserving and calling for future review and consideration by the City Council of an amended service plan. Patrick Rowe, Redevelopment Program Coordinator, stated this is a multi -district plan for the southwest corner of Harmony and I-25 which is currently a greenfield property, formerly a gravel mining site. A variety of uses are planned for the 260-acre coordinated development, including residential, office, warehouse and hotel components. The purpose of the metro district is to address site constraints and to deliver an enhanced development outcome which is consistent with City plans. The proposed land use mix between commercial and residential is approximately 91.5% commercial and 8.5% residential. Josh Birks, Economic Health Director, stated the item before Council is a consolidated, or shell, service plan, as there is currently little specificity in terms of development proposals and a concern that the conceptual plan does not necessarily align with the currently land use on the southern portion of the property. City of Fort Collins Page 111 September 27, 2016 Rowe stated this limited service plan does not allow for taxes or fees to be imposed, debt to be incurred, or improvements to be built. The service plan amendment is required to be initiated within three years. Councilmember Cunniff asked why there appears to be some urgency in getting the TABOR election completed in this two-year cycle as the next opportunity is within the three year period. Birks replied the developer and applicant feel it is important to move forward under this particular timeline. Mayor Troxell requested one of the applicants address the question asked by Councilmember Cunniff. Robert Rogers, White, Bear and Ankele, replied the applicant is attempting to achieve some economies of scale by having both TABOR elections this fall. Additionally, an overall development plan (ODP) has already been approved for the property and the applicant would like the flexibility to move forward and push the ready pieces of the development forward. The service plan has enough flexibility to allow for an initial amended service plan and subsequent amended service plans as needed. Councilmember Cunniff asked if the existing ODP is concentrated in any one of the three district areas. Mr. Rogers replied it is entirely in District No. 1. He noted there are some significant advantages to financing and coordinating the construction of public improvements if the entire project can be organized at once. Mayor Pro Tern Horak made a motion, seconded by Councilmember Martinez, to adopt Resolution 2016-076. Councilmember Cunniff stated he is not convinced a metro district is a necessary tool in this case. Councilmember Overbeck stated he would not support the motion. Councilmember Martinez requested additional detail from Councilmember Overbeck. Councilmember Overbeck stated the acreage is too high for his comfort level. i Councilmember Campana asked about any financial risk to the City in terms of metro districts. Birks replied metro districts issue their own debt and collect their own taxes to fund that debt; the City has no financial responsibility for that debt.' The disadvantage, should a metro district fail, is political in nature for the citizens who live within'the metro district. Councilmember Campana supported metro districts as a viable tool that do not expose the City to financial risks. Councilmember Overbeck stated he prefers a slower approach and questioned the political and legal ramifications to the City of a metro district failure. Birks replied the bond holders only have recourse against the revenue collected from the imposed mill levy; the City has no responsibility for repaying that debt. Politically, the citizens could ask Council to intervene; however, Council would only do what it is willing in the event of a failure. Typically, one of the benefits to a phased approach is that the metro district does not take on all the debt early on; therefore, the metro district is at a lower risk of over -extending itself. City Attorney Daggett replied the one thing not spelled out at this stage; because of the preliminary status of the plan, is that, there are improvements that are constructed that, in some cases, can be turned over to the City of Fort Collins Page 112 September 27, 2016 City for its ownership and operation. In other cases, the district maintains ownership and operation of those improvements. As the amended service plan comes forward, questions regarding improvements and potential City ownership will need to be answered and, depending on the structure of the plan, there may be City -owned public improvements in the district area that may be necessary for the continued occupation of the property and continued operation and maintenance of those would be a question. Birks noted most greenfield development takes place in the same manner. Councilmember.Campana noted the main aspects and details will be flushed out at a future time with the amended service plan. Councilmember Overbeck stated the affordable housing outcomes desired by the -City did not come to fruition as part of the Foothills Mall metro district. Councilmember Cunniff agreed there is no financial risk to the City, and agreed metro districts can be a useful tool; however, he stated he is not convinced it is a necessary tool in this case. Mayor Troxell stated he would support the motion. RESULT: RESOLUTION 2016-076 ADOPTED [5 TO 21 MOVER: Gerry Horak, District 6 SECONDER: Ray Martinez, District 2 AYES: Martinez, Stephens, Campana, Troxell,.Horak NAYS: Overbeck, Cunniff • OTHER BUSINESS Councilmember Cunniff stated the Finance Committee is an appropriate body to discuss details regarding the service plans moving forward rather than creating another committee. Councilmember Overbeck commended the work of the Mall redevelopment committee. Councilmember Campana suggested the creation of a matrix comparing the metro districts at Foothills Mall, the Harmony Tech Park, and the two created this evening. • ADJOURNMENT The meeting adjourned at 6:55 PM. Mayor r ATTEST: City Clerk City of Fort Collins Page 113