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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 09/02/2008 - ITEMS RELATING TO THE CIVIC CENTER PARKING STRUCTU ITEM NUMBER: 10 A-B AGENDA ITEM SUMMARY DATE: September2, 2008 FORT COLLINS CITY COUNCIL STAFF: Chuck Seest SUBJECT Items Relating to the Civic Center Parking Structure. RECOMMENDATION Staff recommends adoption of this Ordinance on Second Reading. EXECUTIVE SUMMARY A. Second Reading of Ordinance No. 093, 2008, Authorizing an Amendment to the Intergovernmental Agreement Between the City and Latimer County and the Fort Collins, Colorado Downtown Development Authority Pertaining to the Civic Center Parking Structure. B. Second 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. With the passage of Senate Bill 170 during the 2008 session of the state legislature and with the adoption of Ordinance No. 101, 2008, 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 for the contribution it made on behalf of the DDA in 1998. Both Ordinances were unanimously adopted on First Reading on August 19, 2008. ATTACHMENTS 1. Copy of First Reading Agenda Item Summary - August 19, 2008. (w/o original attachments) ATTACHMENT 1 ITEM NUMBER: 15 A-B AGENDA ITEM SUMMARY DATE: August 19, Zoos FORT COLLINS CITY COUNCIL FF: Chuck Seest —,� SUBJECT n 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 Lari er� P oP yedel per year for the years that the Downtown Development Au ity will e payt service on the Civic Center Parking Garage. The County tribute 1,27 et the remaining years of debt service after the DDA would s t-it�2 n 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 Ordin o. 0 20 p ri . g Prior Year Reserves in the General Fund for Repa ent t ime o r unty's Contribution Toward the Fort Collins, Colorado to Dev p Aut ty's Share of Financing the Civic Center Parking Struc 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 421 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 Cid ter n d toe-County should be repaid the contribution it made on behalf 016if the in 1 8 ATTACHMENTS 1. Repayment Schedule for Larimer County's Contribution on Behalf of DDA. 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, Latimer 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 20t8 ($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 4passageth2nd day of September, D. 2008. ATTEST: City Clerk Passed and adopted on final reading this 2nd day of September, A.D. 2008. Mayor ATTEST: City Clerk 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 Latimer,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 1998-1 l9 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 day of September, A.D. 2008. May ATTEST: City Clerk Passed and adopted on final reading on the 2nd day of September, A.D. 2008. Mayor ATTEST: City Clerk