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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 06/15/2004 - RESOLUTION 2004-076 AUTHORIZING AND DIRECTING STAF ITEM NUMBER: 22 AGENDA ITEM SUMMARY DATE: June 15, 2004 FORT COLLINS CITY COUNCIL STAFF: Joe Frank SUBJECT Resolution 2004-076 Authorizing and Directing Staff to Prepare an Urban Renewal Plan and Blight Study for the North College Corridor Area. RECOMMENDATION Staff recommends adoption of the Resolution. EXECUTIVE SUMMARY In 1982, the Fort Collins City Council created an Urban Renewal Authority (URA) for the purpose of eliminating blight in the community, and designated itself as the governing authority. A URA exercises its powers by planning and carrying out urban renewal plans in urban renewal areas. Revitalization of the North College Corridor has been relatively slow and spotty. It is clear to most that if the area is to be successful, a comprehensive approach to revitalization is necessary. The City has been approached by the North Fort Collins Business Association to recognize the North College Avenue Corridor as an urban renewal project area and to create an urban renewal plan for it, including the requisite blight study. Adoption of the resolution authorizes and directs staff to prepare the plan and blight study, involving potentially affected interests. BACKGROUND General. In 1982, the Fort Collins City Council created an Urban Renewal Authority (URA) and designated itself as the goveming board (known as the "Authority"). The boundaries of the URA are the municipal limits. The Fort Collins URA was created to prevent and eliminate conditions of blight in the community. State Statutes gives the URA broad powers to carry out its statutory mandate. Included are the powers to enter into contracts, borrow funds and acquire property voluntarily or by eminent domain, among others. Urban renewal projects may be financed in a variety of ways. URAs are authorized to borrow money, issue bonds, and accept grants from public or private sources. The principal method of financing urban renewal projects is through obligations secured by property tax or sales tax increments from the project area ("tax increment financing"). A URA exercises its powers by planning and carrying out urban renewal plans in urban renewal areas. June 15, 2004 -2- Item No. 22 Unmet Needs. In 1995, the City Council adopted the North College Avenue Corridor Plan as an element of the City's comprehensive plan. Among its goals were to: • Revitalize the area to improve the "neglected commercial strip" image, and • Increase the opportunity for development and expansion of business and industry The North College Corridor was also targeted as an area for redevelopment and infill in the recently updated City Plan document, the City's Comprehensive Plan. One of the outstanding concerns by property owners in the Corridor is the area's economic viability in terms of future business development and commercial growth. Several factors contribute to this issue including: lack of infrastructure improvements — particularly for storm water drainage, street connectivity, and street improvements (curbs, gutters, sidewalks, street trees, and bike lanes). Unfortunately, revitalization of the North College Corridor has been relatively slow and spotty. It is clear to most that if the area is to be successful, a comprehensive approach to the areas revitalization is necessary. Proposal. For the past several months, a few property owners, developers, members of the North Fort Collins Business Association (formerly known as the North College Business Association), and City staff have been meeting to discuss opportunities to inject momentum into the revitalization efforts. One of the tools that have been discussed is the City's Urban Renewal Authority and its authority to use tax increment financing of needed improvements. The City has now been approached by the Business Association to recognize the North College Avenue Corridor as an urban renewal project area and to create an urban renewal plan for it. Before an urban renewal plan for this area can be approved, the area must be found by the Authority (City Council) to be a blighted area as defined in State Statutes. Hence, the North Fort Collins Business Association is also requesting that a blight study be prepared. The procedures for adopting an urban renewal plan are set forth in the state statutes and generally described in the attachment. Staff can prepare the plan and blight study for the Authority's approval before the end of this year or sooner. The planning effort includes forming a staff appointed citizens committee and offering many opportunities for review and comment by the Authority, as well as area property owners, residents, School District, Latimer County, and the general citizenry. The NFCBA has committed to provide direct assistance in the preparation of the Plan and outreach efforts to area businesses, property owners and residents. In addition, the Planning and Zoning Board will review the plan and provide a recommendation to the Authority. The following are some common questions and answers about an Urban Renewal Authority, urban renewal plan, financing techniques, etc.: 1. What are some of the ways an Urban Renewal Authority could work? Response. An Urban Renewal Authority works through an urban renewal plan. The plan paves the way for the establishment of urban renewal projects, which may include the acquisition June 15, 2004 -3- Item No. 22 and/or transfer of properties within the urban renewal project area. The plan generally includes matters such as the types of improvements to be constructed, anticipated financing mechanisms, zoning and land use, etc. After the plan is adopted, it controls the land area, land use, building requirements (which may include design standards), and other related matters. While existing city zoning, design and building requirements still generally apply, the urban renewal plan is an additional layer of control over the use of property in the project area. The plan can specify which set of regulations (URA versus normal City ordinances) will take precedence. Among the powers of a URA are the powers to undertake the projects, execute contracts, commence legal actions, provide for public facilities and improvements, acquire property, dedicate property, borrow money, provide relocation plans and/or payments for displaced residents, etc. 3. What are the ways for a URA to create a cash flow into the area from improvements and developments? While a URA does not have the power to levy or assess taxes of any kind, an urban renewal plan can provide for tax increment financing (TIF) for the Authority. The TIF is generally a URAs primary source of revenue, and it can be either a property tax increment or a sales tax increment, or both. The TTF can continue for up to 25 years. Also, the TTF can be used to front the cost of project improvements. The bonds can be paid either from the TTF or from general fund revenues, income derived from any project of the authority, federal or state grants, mortgages held on any project, etc. The URA bonds are not technically a debt of the City. 4. Can the City use condemnation in an Urban Renewal area? Any URA condemnations would be undertaken by the URA rather than the City. At present, the condemnation powers of a URA are basically the same as those of the City. Essentially, a URA can use its condemnation powers to acquire properties in a blighted area for the purpose of redevelopment. The redevelopment can either be done by the URA or by a private developer. 5. How would the Authority separate out the sub-area of North College from the Urban Renewal Authority of the entire City of Fort Collins? This would be done through the adoption of an urban renewal plan for that area. 6. What would be the boundaries of the Plan? The urban renewal plan will firmly establish the boundaries of the North College urban renewal area. However, staff anticipates that the boundaries of the urban renewal plan area will likely encompass a similar area as the North College Avenue Corridor Plan, approximately 1000 acres in size, bounded by County Road 1 on the north, Vine Drive on the south, Redwood Street on the east, to a line approximately V2 mile west of College Avenue. All of the property in the urban renewal plan would be within the City limits. 7. What constitutes a "blighted area"? June 15, 2004 -4- Item No. 22 URAs are created to prevent and eliminate conditions of slum and blight. Few if any urban renewal projects in Colorado include conditions that qualify as a slum area under State Statutes. Rather, the establishment of URAs and urban renewal plans are commonly based on the definition of blighted area in the State Statutes. A blighted area means an area that, in its present condition and use, contains at least four* of the following factors: a) slum, deteriorated or deteriorating structures; b) predominance of defective or inadequate street layout; c) faulty lot layout in relation to size, adequacy, accessibility, or usefulness; d) unsanitary or unsafe conditions; e) deterioration of site or other improvements; f) unusual topography or inadequate public improvements or utilities; g) defective or unusual conditions of title rendering the title non-marketable; h) the existence of conditions that endanger life or property by fire or other causes; i) buildings that are unsafe or unhealthy;j) environmental contamination of buildings or property; or, k) the existence of health, safety or welfare factors requiring high levels of municipal services or substantial physical underutilization or vacancy of sites, buildings, or other improvements. A condition present in the area may satisfy as many of the above factors as apply to the condition. If there is no objection by a property owner and any tenants, only one of the factors: a) through h) is necessary to qualify. * If the URA contemplates utilizing the power of eminent domain, then the number of blight factors is increased from four to five. RESOLUTION 2004-076 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING AND DIRECTING STAFF TO PREPARE AN URBAN RENEWAL PLAN AND BLIGHT STUDY FOR THE NORTH COLLEGE CORRIDOR AREA WHEREAS,in 1982, the City Council created an Urban Renewal Authority(URA)for the purpose of eliminating blight in the community,and the City Council designated itself as the Board of Commissioners of the Urban Renewal Authority; and WHEREAS, an Urban Renewal Authority exercises its statutory powers by planning and carrying out urban renewal plans in the geographic area of the URA; and WHEREAS, the City has been approached by the North Fort Collins Business Association expressing concerns about the economic viability of the North College Avenue Corridor and its capacity to grow new businesses due to the lack of infrastructure improvements, including stormwater drainage improvements, street connectivity and other street improvements; and WHEREAS, the revitalization of the North College Avenue Corridor has heretofore been difficult to achieve; and WHEREAS, it is in the best interest of the North College Avenue Corridor and the City generally that the Corridor become more economically viable and, in order for this to occur, a comprehensive approach to revitalization may be necessary; and WHEREAS,the Council has determined that it is in the best interest of the City to recognize that the North College Avenue Corridor may need to become an urban renewal project area and that an urban renewal plan for the Corridor, including the statutorily required blight study, should be prepared. NOW,THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS that City staff is hereby directed to prepare an urban renewal plan and blight study for the North College Avenue Corridor area and to present the same to the City Council,acting as the Board of Commissioners of the Urban Renewal Authority, for further consideration and potential action. Passed and adopted at a regular meeting of the City Council held this 15th day of June,A.D. 2004. Mayor ATTEST: City Clerk PROCESS for APPROVAL of a NORTH COLLEGE AVENUE URBAN RENEWAL PLAN KEY STEPS 1. North College Avenue Business Association (NCBA) seeks support of City to create an Urban Renewal Plan. City Council reviews and adopts Resolution authorizing staff to prepare a Blight Study and Urban Renewal Plan. 2. City staff forms an Advisory Committee (property-owners &business owners) to work with staff on the Blight Study and Urban Renewal Plan. 3. Staff completes the Blight Study and Urban Renewal Plan. Public input is solicited on the Study and Plan. 4. A completed Blight Study and Urban Renewal Plan are submitted to the City Council who in turn submits the URA Plan to the Planning and Zoning Board for their recommendation. Written notice is given to the Poudre School District and Board of County Commissioners. 5. P & Z Board reviews URA Plan for conformance with City Plan and sends recommendation(s) to the City Council. 6. Public notice of the City Council's public hearing on the URA Plan as well as notice to the School District and County Commissioners. URA Plan is submitted to the County Commissioners who in turn send comments to the City Council. 7. City Council conducts a public hearing to: (i) determine blight; and (ii) approve the URA Plan. 8. City Council notifies County Assessor of approval of URA Plan if the plan provides for tax increment funding. 9. URA Plan implementation, including but not limited to issuance of bonds, as well as other action items listed in the Plan.