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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 02/19/2008 - SECOND READING OF ORDINANCE NO. 009, 2008, APPROPR ITEM NUMBER: 10 AGENDA ITEM SUMMARY DATE: February 19, 2008 FORT COLLINS CITY COUNCIL STAFF: Chip Steiner SUBJECT Second Reading of Ordinance No.009,2008,Appropriating Prior Years Reserves in the Downtown Development Authority Fund for Expenditure on Projects in Accordance with the Downtown Plan of Development. RECOMMENDATION Staff recommends adoption of this Ordinance on Second Reading. EXECUTIVE SUMMARY This Ordinance, unanimously adopted on First Reading on February 5, 2008, appropriates unanticipated revenue from interest earnings in the amount of$754,374 and reappropriates$713,667 from project savings from prior years appropriations. The DDA board has authorized the expenditure on various projects and programs. ATTACHMENTS 1. Copy of First Reading Agenda Item Summary- February 5, 2008. (w/o original attachments) ATTACHMENT 1 ITEM NUMBER: 14 AGENDA ITEM SUMMARY DATE: February 5, 2008 FORT COLLINS CITY COUNCIL FF: Chip Steiner SUBJECT I. - First Reading of Ordinance No. 009, 2008, Appropriating Prior Years Reserves in the Downtown Development Authority Fund for Expenditure on Projects in Accordance with the Downtown Plan of Development. RECOMMENDATION Staff and the Downtown Development Authority Board recommend adoption of the Ordinance on First Reading. FINANCIAL IMPACT The DDA Board has authorized a penditure on the ollowing projects or programs which will be funded with this appropriation: Mason Street Transportation Corridor Contribution $600,000 Funding for Beet Street for 2008 300,000 Opera Galleria Atrium Door Project 117,300 Funding for News Racks 100,000 Alley Master Plan 46,000 Funding for the Downtown Ice Rink 2007-2008 40,000 Miscellaneous Projects approved or pending DDA Board approval 264,741 $1,468,041 EXECUTIVE SUMMARY This Ordinance will appropri unanopatedPfrost earnings in the amount of $754,374 and reappropriate $ 667, ior years appropriations. The DDA board has authorized the expenditure on various projects and programs. BACKGROUND The Downtown Development Authority (the "DDA") was created in 1981 with the purpose, according to State statute, of planning and implementing projects and programs within the boundaries of the DDA. The DDA and the City adopted a Plan of Development that specifies the February 5, 2008 -2- Item No. 14 projects and programs the DDA would undertake. In order to carry out the purposes of the State statute and the Plan of Development, the City, on behalf of the DDA, has issued various notes and tax increment bonds. The first issuance of tax increment bonds occurred in 1984 with one subsequent issue in 2007. Over the past few years, pr eeds fr D ve that have not been spent have accumulated interest earnings. ese s, as el the pro ct savings,need to be appropriated for expenditure. The amount o erest ineg Curren $754,374 and project savings is $713,667. Staff has provided a summary for each project or program. All the projects/programs listed for funding through this appropriation have either been approved or are pending approval by the DDA Board of Directors. All approvals by the DDA Board are made contingent upon City Council appropriation of these funds to fullfil the Authority's commitment to the projects. With the exception of those projects or programs which are purely public in nature,no DDA expenditures are to be made until projects are completed and have received certificates of occupancy from the City. 1. Mason Street Transportation Corridor Contribution The City has received a large grant from the State to construct the downtown portion of the proposed Mason Street i m0J)e City has asked the DDA to contribute $600,000 t and t receive the state grant for the completion of the tran corridoeet t aurel Street. 2. Beet Street The total commitment to Beet Street is $3 million. During 2007, the DDA contributed $737,753. Funding for 2008 is estimated at$1.3 million with$1 million coming from a prior DDA appropriation in 2007. 3. Opera Galleria Atrium Door $117,300 commitment to fund improvements to the rear entrance of the Operia Galleria. 4. News Racks $100,000 commitment to fund the purchase of news rack condominiums contingent upon Council's approval to s o Ci s contribution of$25,000. 5. Alley Master Plan $46,000 commitment to hire a consultant team of Russell + Mills Studios to create the DDA's Master Plan for Downtown Alleys and Integrated Walkways. 6. Downtown Iee Rink 2007-2008 $40,000 commitment to reimburse the City of Fort Collins for installation and removal of the ice rink in Old Town Square. February 5, 2008 -3- Item No. 14 7. Miscellaneous $264,741 for approved small dollar expenses or future capital and program expenses. ATTACHMENTS C1 C) 1)Y" 1. DDA Resolution 2008-01 Approving and Recommending to the Fort Collins City Council the Appropriation of $1,468,041 of Interest Earnings and Project Savings from Bond Proceeds in the Fort Collins Downtown Development Authority Fund for Expenditure on Projects in Accordance with the Downtown Plan of Development . 1. Background and minutes from the related DDA Board Meeting where each of the above projects and programs were approved. ORDINANCE NO. 009, 2008 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING PRIOR YEAR RESERVES IN THE DOWNTOWN DEVELOPMENT AUTHORITY FUND FOR EXPENDITURE ON PROJECTS IN ACCORDANCE WITH THE DOWNTOWN PLAN OF DEVELOPMENT WHEREAS, on April 21, 1981, the City Council adopted Ordinance No. 046, 1981, establishing the Fort Collins, Colorado, Downtown Development Authority (the "Authority"); and WHEREAS, the Authority's Plan of Development was approved by the City Council on September 8, 1981, and established the purpose of the Authority and the types of projects in which the Authority would participate; and WHEREAS, bond proceeds from 1999 through 2007 have accrued interest earnings in the amount of$754,374, and WHEREAS, staff has identified project savings of $713,667 that are currently in prior year reserves; and WHEREAS, Article V, Section 10, of the Charter authorizes the City Council to transfer by ordinance any unexpended and unencumbered amount or portion thereof from one fund or capital project to another fund or capital project, provided the purpose for which the transferred funds are to be expended remains unchanged; and WHEREAS, the Board of Directors of the Authority recommend to the Council of the City of Fort Collins these expenditures on projects, passed and adopted at the regular meeting of the Board of Directors of the Fort Collins Downtown Development Authority on the loth day of January, 2008; and WHEREAS, it is the desire of the Council to appropriate the sum of ONE MILLION FOUR HUNDRED SIXTY EIGHT THOUSAND FORTY ONE DOLLARS ($1,468,041) from prior year reserves for certain projects in the downtown area. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF T14E CITY OF FORT COLLINS that there is hereby appropriated for expenditure from prior year reserves in the Downtown Development Authority Fund the sum of ONE MILLION FOUR HUNDRED SIXTY EIGHT THOUSAND FORTY ONE DOLLARS ($1,468,041) to be used for the projects stated below: Mason Street Transportation Corridor Contribution $600,000 Funding for Beet Street 2008 300,000 Opera Galleria Atrium Door Project 117,300 Funding for News Rack Condominiums 100,000 Alley Master Plan 46,000 Funding for Downtown Ice Rink 2007 - 2008 40,000 Miscellaneous DDA Board Approved Projects 264,741 Total Projects $1,468,041 Introduced, considered favorably on first reading, and ordered published this 5th day of February, A.D. 2008, and to be presented for final passage on the 19th day of February, A.D. 2008. 4ay ATTEST: City Clerk Passed and adopted on final reading on the 19th day of February, A.D. 2008. Mayor ATTEST: City Clerk