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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 08/19/2008 - ITEMS RELATING TO THE CIVIC CENTER PARKING STRUCTU ITEM NUMBER: 15 A-B AGENDA ITEM SUMMARY DATE: August 19, Zoos FORT COLLINS CITY COUNCIL STAFF: Chuck Seest SUBJECT Items Relating to the Civic Center Parking Structure. RECOMMENDATION Staff recommends adoption of the Ordinances on First Reading. FINANCIAL IMPACT The City will need to repay Latimer County approximately$186,100 per year for the years that the Downtown Development Authority will be paying its share of the debt service on the Civic Center Parking Garage. The County contributed$1,274,000 in 1998 to offset the remaining years of debt service after the DDA would sunset in 2006. In order to "catch-up" for 2007, the City will make a double payment for both 2007 and 2008 of$372,200. The County has agreed to accept annual payments. The City will make these payments based on the related yield on the City's portfolio. EXECUTIVE SUMMARY A. First Reading of Ordinance No. 093, 2008, Authorizing an Amendment to the Intergovernmental Agreement Between the City and Larimer County and the Fort Collins, Colorado Downtown Development Authority Pertaining to the Civic Center Parking Structure. B. First Reading of Ordinance No. 094, 2008, Appropriating Prior Year Reserves in the General Fund for Repayment to Larimer County for the County's Contribution Toward the Fort Collins, Colorado Downtown Development Authority's Share of Financing the Civic Center Parking Structure. In accordance with an Intergovernmental Agreement (IGA) approved in August 1998 between Larimer County, the City of Fort Collins and the Fort Collins Downtown Development Authority (DDA), the County paid the City $3,070,000 for its share of the development and construction of the Civic Center Parking Garage. The County also paid $1,274,000 for half of the annual debt service assigned to the DDA starting in 2007 until the related financing is completely paid off in 2018. At the time of the IGA, the DDA was expected to sunset in 2006. August 19, 2008 -2- Item No. 15 A-B With the passage of Senate Bill 170 during the 2008 session of the state legislature and with the adoption of Ordinance No. 101,2008(Item#21 on this agenda),the authority of the DDA to use tax- increment financing has been extended to 2031. As a result,the DDA will continue to pay its share of the debt service on the Civic Center Parking Garage and the County should be repaid the contribution it made on behalf of the DDA in 1998. ATTACHMENTS 1. Repayment Schedule for Latimer County's Contribution on Behalf of DDA. Repayment of DDA Parking garage share Assuming interest compounded annually Interest 4, 18% Principal Interest Payment New Balance City Yield Average 1999 1 , 274, 000 34 , 398 - 13308 , 398 5 .40% 1 /2 Year 2000 113081398 775195 - 15385 , 593 5 . 90% 2001 133853593 69 , 280 - 11454 , 873 5 . 00% 2002 114541873 555285 - 15510 , 158 3 . 80% 2003 13510 , 158 39 , 264 - 11549 ,422 2 . 60% 2004 115491422 375186 - 15586 , 609 2 .40% 2005 135863609 52 , 358 - 11638 , 967 3 . 30% 2006 116381967 705476 - 15709442 4 . 30% 2007 177093442 83 , 763 - 11793 , 205 4 . 90% 4 . 18% 2008 117931205 745956 372 , 200 15495 , 961 2009 134953961 62 , 531 186 , 100 11372 , 392 2010 113721392 575366 186 ; 100 15243 , 658 2011 132433658 51 , 985 186 , 100 11109 , 543 2012 111091543 465379 186 , 100 969 , 822 2013 969 , 822 40 , 539 186 , 100 824 , 260 2014 8245260 345454 186 ; 100 672 , 614 2015 672 , 614 28 , 115 186 , 100 514 , 630 2016 5145630 215512 186 ; 100 350 , 041 2017 350 , 041 14 , 632 186 , 100 178 , 573 2018 1785573 75464 186 , 100 (63 ) 21233 , 200 ORDINANCE NO. 093, 2008 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING AN AMENDMENT TO THE INTERGOVERNMENTAL AGREEMENT BETWEEN THE CITY, LARIMER COUNTY AND THE FORT COLLINS DOWNTOWN DEVELOPMENT AUTHORITY PERTAINING TO THE CIVIC CENTER PARKING STRUCTURE WHEREAS,on May 14,2008,the Colorado Legislature passed Senate Bill 08-170 amending Title 31, Article 25, Section 807 of the Colorado statutes by allowing municipalities to extend the period of time that a downtown development authority may utilize tax increment financing; and WHEREAS, on July 10, 2008, the Board of the Fort Collins Downtown Development Authority ("DDA") adopted a resolution recommending that City Council approve an ordinance authorizing such an extension; and WHEREAS, on August 19, 2008, the City Council adopted an ordinance to that effect on First Reading; and WHEREAS, the City Council had previously authorized an intergovernmental agreement related to the Civic Center Parking Structure (the "Parking Structure") by and among the City, Larimer County (the "County") and the DDA, which was signed and became effective on July 3, 1997 (the "IGA"); and WHEREAS, pursuant to the IGA, the County paid the City $3,070,000 for its share of the cost of developing and constructing the Parking Structure, as well as half of the annual debt service assigned to the DDA from 2007 until the related financing would be completely paid off in 2018 ($1,274,000); and WHEREAS,in view of the passage of Senate Bill 08-170,and the fact that the DDA will be collecting tax increment revenue for an additional twenty years, the financial arrangements in the IGA regarding payment of the debt service for the Parking Structure should be modified so as to reflect the parties' intent that the cost of the Parking Structure be shared equally by the City, the County and the DDA; and WHEREAS, toward that end, City staff is requesting that the City Council authorize the execution of an amendment to the IGA in substantially the form shown on Exhibit "A", attached hereto and incorporated herein by this reference (the "Amended IGA"); and WHEREAS,the Amended IGA would require the DDA to continue its one-third share of the debt service payment for the remaining Civic Center Parking Structure debt service term; and WHEREAS the Amended IGA would also require the City to make annual payments to the County to reimburse the County for that portion of its lump sum payment representing the unanticipated continued participation of the DDA in making debt service payments; and WHEREAS, the City Council believes that approval of the Amended IGA are in the best interests of the City. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that the Amended IGA,in substantially the form shown on the attached Exhibit"A" and incorporated herein by this reference, is hereby approved by the City Council and the Mayor is hereby authorized to execute the same on behalf of the City. Introduced and considered favorably on first reading and ordered published this 19th day of August, A.D. 2008, and to be presented for final passage on the 2nd day of September,A.D. 2008. Mayor ATTEST: City Clerk Passed and adopted on final reading this 2nd day of September, A.D. 2008. Mayor ATTEST: City Clerk EXHIBIT "A" FIRST AMENDMENT TO THE INTERGOVERNMENTAL AGREEMENT BY AND AMONG THE CITY OF FORT COLLINS, THE COUNTY OF LARIMER, AND THE FORT COLLINS DOWNTOWN DEVELOPMENT AUTHORITY This First Amendment to the Intergovernmental Agreement ("First Amendment') by and among the City of Fort Collins, the County Of Larimer, and the Fort Collins Downtown Development Authority is made this day of 2008, by and between the CITY OF FORT COLLINS, COLORADO, a Colorado municipal corporation (the "City"), the COUNTY OF LARIMER, a political subdivision of the State of Colorado (the "County"), and The FORT COLLINS, COLORADO DOWNTOWN DEVELOPMENT AUTHORITY, a body corporate and politic (the "DDA"). WHEREAS, part of 2 of Article 1 of Title 29, C.R.S. authorizes governments to cooperate and contract with one another to provide any function, service or facility lawfully authorized to each, including the sharing of costs; and WHEREAS, the City, the County and the DDA have previously agreed to certain shared responsibilities to enable the construction, operation and maintenance of a parking structure to be located on Block 21 of the City according to the recorded plat thereof ("Block 21") in downtown Fort Collins to the east across Mason Street from the Justice Center, consistent with the City's Civic Center Master Plan (the "Civic Center Parking Structure" or the "Parking Structure"); and WHEREAS, on June 17, 1997, the Council adopted Resolution 97-91, authorizing an Intergovernmental Agreement by and among the City, the County and the DDA, which was signed and effective on July 3, 1997 (the "IGA"); and WHEREAS, on August 18, 1998, the Council adopted Resolution 98-119 terminating the IGA and authorizing a new one for the same purpose (the "Updated IGA"); and WHEREAS, during construction of the Parking Structure, the County paid its one-third share of the Parking Structure, plus an additional $1,274,000 (the "Prepayment"), in a lump sum, which took into account the anticipated termination after 2006 of the DDA's annual contribution toward the Parking Structure debt service, which would have necessitated that the County and the City equally share in the remaining DDA one-third share; and WHEREAS, in 2002 the Colorado Legislature passed legislation that extended the period of time that a downtown development authority may use tax increment financing by five additional five years, making the termination date for the DDA in 2011; and WHEREAS, on May 14, 2008, the Colorado Legislature passed Senate Bill 08-170 that amended Title 31, Article 25, Section 807 of the Colorado statutes by extending the period of time that a downtown development authority may use tax increment financing; and WHEREAS, on July 10, 2008, the DDA passed a resolution recommending that the City Council adopt an ordinance that would extend the period of time the DDA could use tax increment financing as allowed by the newly amended 31-25-807 C.R.S. and on August 19, 1 2008, the City adopted an ordinance extending the period of time the DDA could use such financing; and WHEREAS, since the DDA is now able to make its annual contribution toward the Parking Structure debt service as contemplated by the parties, the Updated IGA needs to be amended to carry out the original intention of the parties which was to share the cost to build and operate the Parking Structure; and WHEREAS, the City has agreed to make annual payments and the County has agreed to receive those annual payments as reimbursement of the Prepayment. NOW, THEREFORE, in consideration of the mutual promises contained herein, the parties agree that Section 3. FINANCING OF THE PARKING STRUCTURE of the Updated IGA is amended as follows: 3. FINANCING OF THE PARKING STRUCTURE 3.1. The DDA and the City shall continue to make annual payments toward the debt service for the Parking Structure through 2018 as follows: DDA CITY 2008 $ 285,269 $ 285,269 2009 $ 284,685 $ 284,685 2010 $ 257,392 $ 257,392 2011 $ 282,769 $ 282,769 2012 $ 283,373 $ 283,373 2013 $ 282,650 $ 282,650 2014 $ 280,640 $ 280,640 2015 $ 278,361 $ 278,361 2016 $ 274,832 $ 274,832 2017 $ 275,968 $ 275,968 2018 $ 272,763 $ 272,763 Totals: $3.05$,ZQ$ LIAM= 3.2. The City will reimburse the County for the $1,274,000 which the County paid on behalf of the DDA, plus applicable interest. These payments will commence on September 30 2008, and continue annually until 2018 when the principle balance is repaid. The interest rate on the principal will be equal to the average City yield on investments during the period of the outstanding balance. The estimated repayment schedule is shown below. 2 Principal Interest Payment New Balance 2008 1,793,205 74,916 372,200 1,495,921 2009 1,495,921 62,496 186,100 1,372,317 2010 1,372,317 ' 57,332 186,100 1,243,550 2011 1,243,550 ' 51,953 186,100 1,109,402 2012 1,109,402 ' 46,348 186,100 969,651 2013 969,651 40,510 186,100 824,061 2014 824,061 34,427 186,100 672,388 2015 672,388 28,091 186,100 514,379 2016 514,379 ' 21,490 186,100 349,769 2017 349,769 14,613 186,100 178,281 2018 178,281 ' 7,448 186,100 (371) " Interest rate for these payments will be based on average City yield on investments for the prior year. All other terms and conditions of the Updated IGA shall remain in full force and effect. This Agreement shall be effective upon the date of the last party to sign. Signatures on following pages. CITY OF FORT COLLINS, COLORADO, a municipal corporation Dated: By: Doug Hutchinson, Mayor ATTEST: APPROVED AS TO FORM: City Clerk Assistant City Attorney 3 LARIMER COUNTY, COLORADO, a political subdivision of the State of Colorado Dated: By: Glen Gibson Chair, Board of County Commissioners ATTEST: APPROVED AS TO FORM: Deputy Clerk County Attorney THE FORT COLLINS, COLORADO DOWNTOWN DEVELOPMENT AUTHORITY a body corporate and politic Dated: By: Jack Wolfe, Chairperson ATTEST: George Brelig, Secretary 4 ORDINANCE NO. 094, 2008 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING PRIOR YEAR RESERVES IN THE GENERAL FUND FOR REPAYMENT TO LARIMER COUNTY FOR THE COUNTY'S CONTRIBUTION TOWARD THE FORT COLLINS, COLORADO DOWNTOWN DEVELOPMENT AUTHORITY'S SHARE OF FINANCING THE CIVIC CENTER PARKING STRUCTURE WHEREAS, on June 17, 1997, the Council adopted Resolution 1997-091, authorizing an Intergovernmental Agreement by and among the City of Fort Collins, Colorado, the County of Larimer,Colorado(the"County")and the Fort Collins,Colorado Downtown Development Authority (the "DDA"), which was signed and became effective on July 3, 1997 (the "IGA"); and WHEREAS, the City Council has, by adopting Ordinance No. 128, 1998, authorized the issuance of Lease Certificates of Participation Series 1998 in the amount of$17,210,000, of which $6,920,000 is attributable to the Civic Center Parking Structure (the "Parking Structure"); and WHEREAS,on August 18, 1998,the Council adopted Resolution 1998-119 terminating the IGA and authorizing a new one for the same purpose (the "Updated IGA"); and WHEREAS,pursuant to the Updated IGA,the County paid the City$4,344,000 for its share of the development and construction of the Civic Center Parking Structure($3,070,000), as well as half of the annual debt service assigned to the DDA from 2007 until the related financing would be completely paid off in 2018 ($1,274,000); and WHEREAS,in 1998 when the Updated IGA was approved,the DDA was expected to sunset prior to the full payment of the Civic Center Parking Structure debt service; and WHEREAS, on May 14, 2008, the Colorado legislature passed Senate Bill 170, amending Title 31,Article 25, Section 807 of the Colorado statutes by extending the period of time downtown development authorities may utilize tax increment financing ("TIF"); and WHEREAS, on August 19, 2008 City Council adopted such an ordinance on First Reading (Ordinance No. 101, 2008); and WHEREAS, with the extension of the TIF, the DDA will continue to pay its share of the Parking Structure debt service and the County should be repaid for its initial contribution in 1998; and WHEREAS, the City will need to repay the County approximately $186,100 per year contribution and the combined payment for 2007 and 2008 will be $372,200; and WHEREAS, these funds are available from the General Fund prior year reserves; and WHEREAS,Article V, Section 9,of the Charter of the City of Fort Collins permits the City Council to appropriate by ordinance at any time during the fiscal year such funds for expenditure as may be available from reserves accumulated in prior years,notwithstanding that such reserves were not previously appropriated. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that there is hereby appropriated for expenditure from General Fund prior year reserves the sum of THREE HUNDRED SEVENTY-TWO THOUSAND TWO HUNDRED DOLLARS ($372,200),for repayment to the County for the County's contribution to financing the Civic Center Parking Structure. Introduced, considered favorably on first reading, and ordered published this 19th day of August,A.D. 2008, and to be presented for final passage on the 2nd day of September,A.D. 2008. Mayor ATTEST: City Clerk Passed and adopted on final reading on the 2nd day of September, A.D. 2008. Mayor ATTEST: City Clerk