HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 07/01/2008 - FIRST READING OF ORDINANCE NO. 076, 2008, APPROPRI ITEM NUMBER: 22
AGENDA ITEM SUMMARY DATE: July 1, 2008
FORT COLLINS CITY COUNCIL STAFF: Chip Steiner
Darin Atteberry
SUBJECT
First Reading of Ordinance No. 076, 2008, Appropriating Funds in the Downtown Development
Authority Fund for Expenditure in Accordance with the Downtown Plan of Development.
RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
At its April 10, 2008 meeting, the Downtown Development Authority Board voted to recommend
approval of the appropriation.
FINANCIAL IMPACT
The DDA Board has authorized expenditure on the purchase of the Elks Building, 140 East Oak
Street,in the amount of$2,800,000. The funds are currently available but require appropriation by
City Council.
EXECUTIVE SUMMARY
The Downtown Development Authority (DDA) is asking Council to appropriate $2,800,000 from
the Downtown Development Authority Operations and Maintenance 2004A DDA Bond Project and
the 2007A Bond Project fund for the purchase of the Elks building. The DDA Board has authorized
the expenditure on this project.
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
projects and programs the DDA would undertake. Subsequent to that Plan, the City has adopted
the Downtown Plan and the Downtown Strategic Plan. All three documents cite the need for and
the pursuit of a downtown hotel. The Elks building will be torn down(saving and recycling as much
material as possible and minimizing the impact of local landfills)and the surface area will become
public parking in conjunction with the hotel development. While the DDA originally intended to
build a convention center on the Elks site,the hotel developer has agreed to add 7,000 square feet
of meeting space within the hotel proper (in addition to the 5,000 square feet it has already
July 1, 2008 -2- Item No. 22
committed to build). The DDA intends, with City Council approval, to use the saved funds for
improvements to six alleys, the planning, design and construction of a year-round community
market, and to ensure the DDA-planned amphitheater is built to the maximum benefit of the
community.
ATTACHMENTS
1. Minutes from the April 10, 2008 meeting of the DDA.
2. Excerpts from the Downtown Development Authority Plan of Development, Downtown
Strategic Plan and the Downtown Plan.
ATTACHMENTI
DDA Minutes
April 10,2008
Page 3
Board discussion clarified that the landscaping was pact of the improvement and
therefore qualified for a fagade grant.
Moved an,seconded by Mr.Sears: To fund this proposal at 417 West Mountain Avenue
e amount of$11,036. The motion passed unanimously.
UPDATES
New Racks: Mr. Steiner reported the results of two facilitated meetings between the parties hrvoly
current debate over news racks. The crent proposal to City Council that has been agreed nt es is to
approve twelve(12)condominium locations now and also approve four 4 penmtted future sites
that would not be installed at this time. This will involve an o the ordutance between frst and
second reading by Council.
:condo
oved by Ms.Jor ed by Mr.Taylor: To approve funding of four(4)additional
vs racks if they are permitted at a future date with the understanding that this is the
er. The motion passed unanimously.
EXECUTIVE SESSION
Moved by Mr.Taylor,seconded by Mr. Sears: To move to Executive Session to discuss real estate
issues. This Executive Session for the purpose stated is authorized pursuant to CRS 24-6-402(4)(1)
(1). The motion passed unanimously.
Moved by Mr.Taylor,seconded by Mr. Seas: To move from Executive Session back to Regular
Session. The motion passed unanimously.
Moved by Mr.Taylor,seconded by Ms. Spencer: To authorize the Authority to offer$2.8 million to
purchase the Elks Building and, if accepted,to amend the contract accordingly. The motion passed
unanimously.
Further discussion of the Board reached consensus that it would be advisable to postpone the April 22nd
joint work session with City Council on the hotel project.
ADJOURN
There being no further business the meeting adjourned at 9:45 a.m.
George Brelig,Secretary
ATTACHMENT
FORT COLLINS
DOWNTOWN DEVELOPMENT AUTHORITY
PLAN OF DEVELOPMENT
ADOPTED BY THE
COUNCIL OF THE CITY OF FORT COLLINS, COLORADO
SEPTEMBER 8, 1981
3. Sidewalks and pathways
C. A parking program to provide sufficient public parking to service all
occupants and owners within the District including, but not limited
to, the following:
1. Construction of parking garages and lots concentrating on areas
of present parking deficiencies as shown in Attachment I, Page 14
of the Parking Study attached hereto as Appendix V and such areas
as may require parking facilities in connection with projects
undertaken hereafter.
2. Increase the efficiency and effectiveness of existing parking.
3. Introduce programs to reduce the need for parking such as:
a. Shuttle system;
b. Van pooling;
c. Park and ride lots;
d. Bikeways.
4. Establish special parking zones and regulations.
5. Work in conjunction with the City Parking Commission to carry out
other actions described in the Parking Study (Appendix V) .
D. A convention/exhibition facility to be built in conjunction with
private development of a downtown hotel and banquet hall facility
emphasizing use of the District for trade shows, cultural events,
business meetings, conventions, entertainment and also to promote
tourism and to complement the Lincoln Center.
E. A pedestrian and vehicular circulation system including but not
limited to the following features:
1 . A north-south one-way street system utilizing Mason Street as the
northbound artery and Howes Street as the southbound artery.
2. A bypass system that would relieve traffic congestion on College
Avenue, Mulberry Street, Riverside Avenue and Jefferson Street.
3. A pedestrian system including, but not limited to:
a. Canopies and shelters;
b. Seating and rest areas;
c. Lighting;
d. Information and directory centers;
e. Handicapped accessibility;
f. Landscaping;
g. Pedestrian graphics.
-9-
CONVENTION CENTER/HOTEL - FACTS AND FINDINGS
Reason for Investigation
The most important factor in creating and maintaining an economically
viable District is people: people shopping, people visiting, people
working, people playing and people belonging. A market study recently
completed by DMJM/Phillips, Reister; Haley, Inc. (DMJM) indicates that a
downtown hotel/convention center in Fort Collins would bring an additional
89,000 people a year to downtown and those people would spend $6.6 million
during their stay. That increase in spending would add substantially to
the economic vitality of the area. It can reasonably be assumed that the
injection of that increased level of spending in the area would have the
spinoff effect of creating a major expansion of conventioneer-servicing
businesses. These new and expanded businesses will occupy much of the
underutilized and vacant commercial space and will provide a market for
major new commercial space. More than any other major development, a
hotel/convention center could enhance the District as the regional com-
mercial , financial , governmental , social , recreational , and cultural center
of Northern Colorado.
Areas of Improvement or Obsolescence
• Decreasing sales as compared to the rest of the City (see Ap-
pendix IX) :
- Total for the area.
- Sales per square foot.
• Short activity day caused by people leaving the downtown area to
return home.
Activity center that will draw and keep people downtown.
• Major development that can act as an impetus to others.
-19-
SECTION II - framework plan
2.1.5 Support the development of a new performing
arts/community center in the Mason Street area.
a. The proposed performing arts/community center facility
should be elevated as the top civic project priority for
strengthening downtown. It should be constructed
within the next 5 years.
b. The Mountain and Mason site for the performing
arts/community center facility is one of the top
locations, given its proximity to the retail/entertainment
core, the future Mason Transportation Corridor, and
existing parking. If this site is determined to not be
feasible, locate the facility in close proximity to the ti,
core.
Example of downtown hotel.
2.1.6 Encourage a hotel, with space to support
conventions/conferences and tourism if possible.
a. Currently, downtown has only 18 hotel rooms, (38 jl
more were approved for the historic Armstrong Hotel
building late in this planning process). There is clearly
a market opportunity to develop new downtown hotel
rooms.
b. Efforts should be made to attract any new hotel
property to downtown - either a boutique specialty
hotel (50 to 80 rooms) or a conference destination
facility (150 to 200 rooms), or both. The hotel would
also become a major downtown employer. Example of a hotel street entryway.
c. Conduct a formal feasibility study to assess the need
for a downtown hotel and conference facility.
2.1.7 Treat Jefferson Street as a connection
between the retail/entertainment district and the river 1k
corridor, and diminish it as a barrier.
a. Jefferson Street's status as a State Highway with
significant truck traffic tends to foster a perception that
it is a barrier.
b. Work with the Colorado Department of Transportation PAW
l
to consider amending the US 2871SH 14 Access
Management Report to 1) incorporate implementation '
of safe parking on Jefferson Street. On- at pa xlny on Jeneaon street.
c. Explore lower speed limits and ways to limit speeding on Jefferson Street.
d. Textured crossing materials and other options should be implemented to encourage pedestrian
access across Jefferson at Linden and Lincoln.
36-DOWNTOWN STRATEGIC PLAN
City of Fort Collins
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F MAL DRAFT
CITY OF FORT COLLINS
DOWNTOWN PLAN
An Element of the Comprehensive Plan
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City of Fort Collins, Colorado
IJune, 1989
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SOME SPECIFIC IDEAS FOR CHANGE
116
Recommendation
Sponsorship of privatization projects by government is an unusual
but promising method of development. The City of Fort Collins
and Larimer County are ready to assume the challenge to develop
Block 31. The time is right, the resources are available, the
private sector is interested, and the needs of the respective govern-
ments justify proceeding with the orderly implementation of a pri-
vatization project for this area of the Downtown.
It is recommended that the City and County governing bodies
authorize a thorough investigation of a private/public partnership
in the development of Block 31 and that they provide adequate
funding to pursue this opportunity.
3.6 Establish a program to recruit major anchors to the Down-
town area.
There is an urgent need to identify and attract new anchor activi-
ties to give the Downtown area the draw and prominence required
to attract customers and businesses. A number of potential
anchors have been identified.
• Department store(s)
s Specialty retail shops
• Home improvement or furnishing center(s)
• Quality hotel(s)
• Eating and drinking establishments
• Conference Center(s)
• Performing/Cultural Arts facility(s)
Attracting these anchors to Downtown requires a combination of
factors, but with strong public sector involvement and hard work,
it can be done.
The pool of anchors looking to open a Downtown establishment is
not deep. Due to its rapidly expanding population base, however,
the Fort Collins region is attractive to many retail and 'restaurant
chains and hotels. The big hurdle is convincing these companies
that a Downtown site is superior to alternative suburban locations.
SOME SPECIFIC IDEAS FOR CHANGE
117
What To Do
There are numerous approaches to attracting anchors to Downtown.
It is recommended that a task force be formed composed of people
interested in the Downtown representing financial institutions,
developers, City Council, property owners, business people, and
residents to guide this task.
The responsibility of the task force is to develop a strategy,
garner support, and undertake implementation. The advice of an
experienced outside consultant is highly recommended. There are
several steps that this task force will be involved in.
Step 1 - Study the market. A professionally prepared study
needs to be undertaken that looks at market opportunity. This
is the first and most important factor. In order to attract a
major retail anchor or hotel, the establishment will need to be
convinced that projected sales are high enough to meet costs
and profit objectives.
The area's demographics and other sources of patronage, includ-
ing Downtown office workers and tourists, need to be
examined. The market study will research competition in the
suburbs as well as Downtown. The study will identify poten-
tial users and analyze parking needs and other physical issues.
Step 2 - Select a developer. The task force needs to look for
developers and/or tenants strong enough in retail and/or hotel
experience, including both development and management.
Step 3 - Develop package of incentives. An attractive financing
package needs to be assembled to attract a developer and/or
retail and hotel anchor. A major anchor ,will review and com-
pare Downtown opportunities with those at a suburban location.
The Downtown wilt have to be able to deliver the best deal if
it is expected to successfully compete with other shopping cen-
ters or locations.
SOME SPECIFIC IDEAS FOR CHANGE
118
The task force should explore options for improving the eco-
nomics of a project through land assembly and writedowns,
sale/leaseback arrangements, or developer subsidies. The Down-
town may need to provide early dollars for testing market
potential and preparing development concepts. In addition, the
public sector may need to invest in public improvements such
as sidewalk and streetscapes to enhance the attractiveness of
Downtown or a particular district.
Step 4 - Plan for Parking. Major retail and hotel anchors need
parking. The Downtown must take an active role in providing
off-street parking to serve these anchors. The City needs to
develop a strategic plan for providing parking for new develop-
ment.
Recommendation
Assemble a task force to begin exploring opportunities for recruit-
ing major anchors in Downtown.
5.8 Explore opportunities for creating a Downtown campus.
Community colleges and public universities were established for
the purpose of bringing education to areas of employment need,
and to enhance the cultural background of those who wish to con-
tinue their studies. With changing technology and the continuing
increase in foreign competition, the role of Colorado community
colleges and public universities has become a safety valve for
continued real economic growth. In Fort Collins, the Front Range
Community College provides the means for students of all ages to
come "on line" for an associate degree and transition to Colorado j
State University (CSU) for further studies and degrees. The mut-
ual cooperation of these institutions is one of the communities'
greatest assets. II
Like any other public activity, both CSU and Front Range Com-
munity College are faced with the problem of solving marketing
and distribution problems to achieve maximum performance in
pursuit of their separate missions. Consequently the location of
their efforts is important to them as well as those who will use I
their facilities.
I
ORDINANCE NO. 076, 2008
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROPRIATING FUNDS IN THE
DOWNTOWN DEVELOPMENT AUTHORITY FUND
FOR EXPENDITURE IN ACCORDANCE WITH THE
DOWNTOWN PLAN OF DEVELOPMENT
WHEREAS, on April 21, 1981,the City of Fort Collins, Colorado, adopted Ordinance No.
46, 1981,establishing the Fort Collins,Colorado,Downtown Development Authority(the"DDA");
and
WHEREAS,the Downtown Development Authority's Plan of Development was approved
by the City on September 8, 1981,and established the purpose of the DDA and the types of projects
in which the DDA would participate; and
WHEREAS, through the adoption of Ordinance No. 88, 2004, the Council appropriated
proceeds from the issuance of the City of Fort Collins,Colorado Downtown Development Authority
Taxable Subordinate Tax Increment Revenue Bonds, Series 2004A, for expenditure on certain
capital improvements in the amount of$6,235,000 and
WHEREAS, through the adoption of Ordinance No. 016, 2007, the Council appropriated
proceeds from the issuance of the City of Fort Collins,Colorado Downtown Development Authority
Taxable Subordinate Tax Increment Revenue Bonds, Series 2007A, for expenditure on certain
capital improvements in the amount of$5,700,000 and
WHEREAS,the DDA requested and City Council appropriated funds in Ordinance No 089,
2004, of which$255,000 remains unexpended and appropriated funds in Ordinance No 017,2007,
of which$2,545,000 remains expended for a combined total of$2,900,000; and
WHEREAS,the DDA wishes to purchase the Elks Building,located within DDA boundaries
at 140 East Oak Street, with $2,800,000 of unexpended funds, knowing that the DDA will request
the issuance of City of Fort Collins Colorado taxable subordinate tax increment revenue bonds in
2008 to fixed project commitments; 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 Fort Collins Downtown Development Authority
passed and adopted at the regular meeting of the Board of Directors of the Fort Collins Downtown
Development Authority on the 1 Oth day of April, 2008, the desire and intent to purchase the Elks
Building; and
WHEREAS,the Board anticipates considering and passing a resolution at its July 10,2008
regular meeting asking that City Council appropriate funds for the purpose of buying the Elks
Building.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS that there is hereby appropriated and reallocated for expenditure from reserves in the
Downtown Development Authority Fund the sum of TWO MILLION EIGHT HUNDRED
THOUSAND DOLLARS ($2,800,000)to be used for the purchase of the Elks Building.
Introduced,considered favorably on first reading,and ordered published this 1st day of July,
A.D. 2008, and to be presented for final passage on the 15th day of July, A.D. 2008.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading on the 15th day of July, A.D. 2008,
Mayor
ATTEST:
City Clerk