HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/04/2003 - SECOND READING OF ORDINANCE NO. 142, 2003 AUTHORIZ ITEM NUMBER: 9
AGENDA ITEM SUMMARY DATE: November4, 2003
FORT COLLINS CITY COUNCIL
STAFF: Alan Krcmarik
SUBJECT
Second Reading of Ordinance No. 142, 2003, Authorizing the Issuance of City of Fort Collins,
Colorado, Downtown Development Authority Taxable Subordinate Tax Increment Revenue
Bonds, Series 2003, Dated Their Delivery Date, in the Aggregate Principal Amount of
$1,000,000 for the Purpose of Financing Certain Capital Improvements and Capital Projects; and
Providing for the Pledge of Certain Incremental Ad Valorem Tax Revenues to Pay the Principal
of, Interest on and Any Premium Due in Connection with the Redemption of the Bonds.
RECOMMENDATION
The DDA Board of Directors and staff recommend adoption of the Ordinance on Second
Reading.
EXECUTIVE SUMMARY
The City of Fort Collins created the Downtown Development Authority to make desired
improvements in the downtown area. Through tax increment financing, the DDA has made
significant contributions to the redevelopment and improvement of the downtown area. This
Ordinance, which was unanimously adopted on First Reading on October 21, 2004, provides
funding from unreserved fund balance in the DDA Debt Service Fund to make additional
improvements in the downtown area. This Ordinance also authorizes the issuance of $1 million
of short term bonds for the projects which will be paid from the tax increment revenue.
ITEM NUMBER: 17
AGENDA ITEM SUMMARY DATE: October 21, 2003
FORT COLLINS CITY COUNCIL
STAFF: Alan Krcmarik
SUBJECT
First Reading of Ordinance No. 142, 2003, Authorizing the Issuance of City of Fort Collins,
Colorado, Downtown Develo tnent11A t5rib T ab e -S bor pate Tax Increment Revenue
Bonds, Series 2003, Dated heir D ivery a , [h ggregate Principal Amount of
$1,000,000 for the Purpose o inancin ertaiD C tal Impr ements and Capital Projects; and
Providing for the Pledge of Ce Ain- ncre ental A Valorem x Revenues to Pay the Principal
of, Interest on and Any Premium Due in Connection with the Redemption of the Bonds.
RECOMMENDATION
The DDA Board of Directors and staff recommend adoption of the Ordinance on First Reading.
FINANCIAL IMPACT
...
At the end of 2002, the Downtown Development Authority Debt Service Fund held
approximately $1,371,000 of unreserved fund balance. According to the revised budget at the
end of 2003, the unreserved fund balance is projected to be approximately $542,000 after the
issuance of these bonds. The DDA Board and staff recommend using a portion of the
unreserved fund balance to make capital improvements and projects in the downtown area
consistent with the mission of the Authority. Based on updated projections of tax increment
revenue, the DDA debt service fund has sufficient revenue to meet all required debt service
payments and reserve require me o 200 hrou h 2006.
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EXECUTIVE SUMMARY , -' -
The City of Fort Collins created the Downtown Development Authority to make desired
improvements in the downtown area. Through tax increment financing, the DDA has made
significant contributions to the redevelopment and improvement of the downtown area. This
Ordinance provides funding from unreserved fund balance in the DDA Debt Service Fund to
make additional improvements in the downtown area. The Ordinance authorizes the issuance of
$1 million of short term bonds for the projects which will be paid from the tax increment
revenue.
October 21, 2003 -2- Item No. 17
BACKGROUND:
The projects include the following:
Armstrong Hotel Renovation $137,200
First National Bank Fagade Improvements 133,000
Downtown Information Center& Public Restrooms 150,000
Austin's Restaurant Improvements 55,790
National Association for Interpretation Project 200,000
Parking Agreement wi i f lliP
"'"" " �125,000
Downtown Christmas' ighting DA S 11,500
Project Blue Stream 120,000
Available for Other Projects" - 17,510
Estimate Costs of Issuance 20,000
Total $1,000,000
The source of funding for the projects will be the DDA's tax increment reserves held in the DDA
Debt Service Fund.
All of these projects have been reviewed and recommended by the Board of Directors of the
DDA.
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