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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 09/06/2005 - ITEMS RELATING TO THE TIMBERLINE ROAD, DRAKE TO PR ITEM NUMBER: 10 A-C AGENDA ITEM SUMMARY DATE: September6, 2005 FORT COLLINS CITY COUNCIL STAFF: Matt Baker SUBJECT Items Relating to the Timberline Road, Drake to Prospect Project and the Creation of Timberline and Prospect Special Improvement District (SID) No. 94. RECOMMENDATION Staff recommends adoption of the Ordinances on Second Reading. EXECUTIVE SUMMARY A. Second Reading of Ordinance No. 090,2005, Relating to the Creation and Organization of the Timberline and Prospect Special Improvement District No. 94 and Providing for the Construction of Improvements Therein. B. Second Reading of Ordinance No. 095, 2005 Amending Section 22-111 of the City Code Pertaining to the Issuance of Bonds for Special Improvement Districts. C. Second Reading of Ordinance No.091,2005, Authorizing Acquisition by Eminent Domain Proceedings of Certain Lands Necessary to Construct Public Improvements in Connection with the Timberline Road, Drake Road to Prospect Road Project. The Timberline Road, Drake to Prospect Project is the most heavily congested intersection in the City. In the absence of any City capital improvement funding for this intersection, two impacted developers are electing to privately fund these improvements in order to proceed with their development projects. These developers are the majority property owners and have proposed the initiation of a special improvement district to distribute a portion of the costs through assessments to other undeveloped property in the area benefitted by the improvements. The creation of a Special Improvement District will spread the cost of the APF improvements to all undeveloped property which benefits from the construction. Ordinance Nos. 090, 095, and 091, 2005, were unanimously adopted on First Reading on August 16, 2005. BACKGROUND On August 16, 2005, the City Council approved on first reading three ordinances that: (a) created the Timberline and Prospect Special Improvement District No. 94; (b) amended Section 22-11 of September 6, 2005 -2- Item No. 10 A-C the City Code to add provisions relating to multiple fiscal year financial obligations; and (c) authorized the acquisition by eminent domain of certain properties necessary to construct public improvements in connection with SID 94. On second reading, certain changes have been made to two of these ordinances. The first change is to Ordinance No. 090,2005 relating to the creation of the district. Section 5 of that ordinance has been changed to reflect the fact that the total amount to be assessed against properties in the district will be less than the probable total cost of the improvements in the district, which is $2,500,000. For the purpose of assessment,that amount will be reduced by(a)the estimated amount that will be due from the owners of certain underutilized properties within one mile of the intersection of Timberline and Prospect Roads,which portion will be payable through reimbursement agreements required by the City as a condition of redevelopment pursuant to Land Use Code Section 3.3.2(F)(2); and (b) the estimated portion of the probable total cost of the improvements that would, according to the proposed method of assessment for the district,otherwise be assessed against properties in the district that are owned by the developers that advanced the cost of the district improvements. The second change is to Ordinance No. 095, 2005 which amends Section 22-11 of the City Code. The purpose of the amendment is to state that, if SID bonds or multi-year financial obligations are to be paid solely from special assessments,the question of issuing such bonds or multi-year financial obligations may be submitted just to electors within the Special Improvement District. The change on the second reading is the addition of a new subparagraph which would authorize the City to incur such multi-year financial obligations for the purpose of reimbursing developers in the district who have advanced the costs of the SID improvements. ORDINANCE NO. 090, 2005 OF THE COUNCIL OF THE CITY OF FORT COLLINS RELATING TO THE CREATION AND ORGANIZATION OF THE TIMBERLINE AND PROSPECT SPECIAL IMPROVEMENT DISTRICT NO. 94 AND PROVIDING FOR THE CONSTRUCTION OF IMPROVEMENTS THEREIN WHEREAS, the necessary proceedings have previously been initiated to create the Timberline and Prospect Special Improvement District No. 94 (the "District") for the purpose of constructing and installing the following improvements, to wit: capacity improvements to the Timberline Road/Prospect Road intersection, including dedicated right-turn lanes,double left-turn lanes, additional through lanes on Timberline Road, and other improvements as necessary, such as traffic signal and utility relocation,bridge and structure widening,right-of-way acquisition,median construction,curb,gutter,and paving(the"Improvements")for the benefit of the property contained within and adjacent to the boundary of said District as set forth on Exhibit "A" attached hereto and by this reference incorporated herein; and WHEREAS, the Council of the City of Fort Collins (the "Council') began proceedings to acquire, install, and construct the Improvements in said District by the acceptance of petitions of certain property owners in said District (the 'Petitioners") and by the adoption of Resolution No. 2003-122 relating thereto on the 4th day of November, 2003, and Resolution No. 2005-083 on the 19th day of July, 2005; and WHEREAS, the Council has received the necessary engineering report and met the other requirements of Section 22-61(a) of the Code of the City (the "Code"); and WHEREAS, notice has been given to the owners of property to be assessed in the District and to all interested persons generally as required by Section 22-61(b) of the Code that this Ordinance is to be considered by the Council; and WHEREAS, any property owners affected and any other person interested generally have been given an opportunity to present their views in regard to the formation of the District as required by Section 22-62(a) of the Code; and WHEREAS, the Council has considered any objections in writing filed with the City Clerk prior to the date fixed for the hearing of this matter; and WHEREAS,the Council has also considered all applicable factors specified in Section 22- 62(c) of the Code in determining whether creation of the District is in the best interests of the City; and WHEREAS,the Council is of the opinion that it is in the best interests of the residents of the City to create said district. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the Council hereby determines that the creation of the District is in the best interests of the City. Section 2. That there is hereby created and organized a special improvement district under and by virtue of the provisions of Chapter 22 of the Code to be known as the Timberline and Prospect Special Improvement District No.94,comprised of the real properties described on Exhibit "A", attached hereto and incorporated herein by this reference. Section 3. That the Improvements to be constructed in said District shall consist generally of capacity improvements to the Timberline Road/Prospect Road intersection, including dedicated right-turn lanes,double left-turn lanes,additional through lanes on Timberline Road,and other improvements as necessary, such as traffic signal and utility relocation, bridge and structure widening,right-of-way acquisition,median construction,curb,gutter,and paving,all as more fully described in the Engineering Report for the District and Resolution 2005-083 on file with the City Clerk and incorporated herein by reference. Section 4. That the estimated total cost of the improvements in the District, including without limitation,the cost of acquiring,planning,engineering,and constructing the Improvements (but excluding legal and advertising costs, interest during constructing and until assessments are made by ordinance against the properties benefitted, financing and other costs to the District), as shown by the estimate of probable total cost, as made by the Director of Community Planning and Environmental Services if$2,500,000. Section 5. That no portion of the total probable cost of the Improvements is to be paid by the City at large; all such cost is to be paid by assessments against property in the District except for: (a) the estimated portion of said cost that will be due from the owners of certain underutilized properties within one mile of the intersection of Timberline and Prospect Roads,which portion will be payable through reimbursement agreements required by the City as a condition of redevelopment pursuant to Land Use Code Section 3.3.2(F)(2);and(b)the estimated portion of said cost that would, according to the proposed method of assessment for the District,otherwise be assessed against those properties in the District described on Exhibit'B " attached hereto and incorporated herein by this reference. The total actual cost in the District, less said amounts, shall, upon completion of the Improvements, be apportioned in an assessment roll against each lot, tract, or parcel of land to be assessed which assessment roll shall include additional assessments to cover the costs of legal and advertising, interest during construction and until assessments are made by ordinance against the properties benefitted, financing and other incidental costs to the District. Assessments shall be levied by an assessing ordinance. Such assessments shall be a lien until paid in the several amounts assessed against each lot, tract, or parcel of land. The cost of acquiring, constructing, or otherwise installing the Improvements in the District, together with all costs incurred in formation and financing of the District,less the amounts referenced in subsections(a)and(b)of this Section 5 shall be assessed against those lots, tracts, or parcels of land in the District. The total of all aggregated assessments shall be sufficient to cover the total cost of the Improvements to be defrayed by special assessments. Section 6. After any lot, tract, or parcel of property within the District is divided into smaller parcels or other property interests,the assessment against such lot,tract or such parcel shall be reallocated so that the assessment against each such smaller parcel or other property interests shall bear the same ratio to the original assessment against such lot, tract or parcel as the proportionate interest in such smaller parcel or other property interest bears to the interest in sellable land in such original lot,tract or parcel as so divided into smaller parcels or other property interests. The entire unpaid principal of any assessment or reallocated assessment,as the case may be,together with interest accruing thereon to the next assessment interest payment date(except to the extent that interest on the bonds to be issued by the City for the District has been capitalized through such date) shall be immediately due and payable by the seller or transferor thereof prior to the sale or transfer or any lot, tract or parcel, or portion thereof if such lot, tract or parcel shall have been divided as aforesaid,unless the purchaser or transferee thereof shall acknowledge,in writing,receipt of notice that the seller or transferor is not paying such assessment or reallocated assessment in full prior to such sale or transfer, and that such assessment or reallocated assessment against such lot, tract or parcel, or portion thereof as the case may be, shall continue to be a lien thereon. Section 7. That pursuant to Chapter 22 of the Code, the Council has considered all complaints or objections made or filed in writing by the owners of any real property to be assessed and any other interested person; and that the Council further finds that all requirements of the Code regarding the organization of the District have been observed and complied with or properly waived; and it is hereby ordered that the Improvements as provided for in the maps,plans and specifications heretofore adopted by the Council, be and they hereby are, ordered to be constructed. Section 8. When the Improvements herein authorized have been completed and the same approved and accepted by the City,the costs as set forth in Section 4 above shall be assessed upon the real property in said District, all as set forth in the Petition and in Resolution 2005-083 for the District on file with the City Clerk. Section 9. If any section,paragraph,clause or provision of this Ordinance shall be held to be invalid or unenforceable,the invalidity or unenforceability of such section,paragraph, clause or provision shall in no manner affect any other provision of this Ordinance. Section 10. All ordinances, resolutions and regulations of the City in conflict with this Ordinance are hereby repealed to the extent only of such inconsistency. This repealer shall not be construed to revive any ordinance, resolution or regulation, or part thereof, heretofore repealed. Section 11. This Ordinance, immediately on its final passage, shall be recorded in the Ordinance Record of the City kept for that purpose,authenticated by the signature of the Mayor and the City Clerk,and notice of the adoption thereof shall be published in The Coloradoan,a newspaper of general circulation published in the City. Section 12. All actions,legal or equitable, for relief against any proceeding provided for under Chapter 16 of the Code, whether based upon irregularities, jurisdictional defects or other grounds, shall be commenced within 30 days after the wrongful act complained of or else be thereafter perpetually barred. Introduced, considered favorably on first reading, and ordered published this 16th day of August, A.D. 2005, and to be presented for final passage on the 6th day of September, A.D. 2005. Mayor ATTEST: City Clerk Passed and adopted on final reading this 6th day of September, A.D. 2005. Mayor ATTEST: City Clerk ORDINANCE NO. 095, 2005 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING SECTION 22-111 OF THE CITY CODE PERTAINING TO THE ISSUANCE OF BONDS FOR SPECIAL IMPROVEMENT DISTRICTS WHEREAS, both the State and the City have enacted legislation pertaining to special improvement districts; and WHEREAS, as a home rule municipality, the City follows the provisions of its City Code pertaining to special improvement districts in areas where the State and local legislation may conflict; and WHEREAS, C.R.S. 31-25-534 contains certain provisions specifying the manner in which the governing body of a municipality is to submit questions pertaining to the issuance of SID bonds and defining the persons who are eligible to vote on such questions,while Section 22-111 of the City Code pertaining to special assessment bonds is silent on those subjects; and WHEREAS, City staff has recommended that Section 22-111 be amended by the addition of a new subparagraph similar to the State law that would apply to both bonds and other multi-year financial obligations of the City; and WHEREAS, the Council believes that such changes are in the best interests of the City. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that Section 22-111 of the City Code is hereby amended by the addition of a new subparagraphs (d), (e), (f) and (g) which shall read in their entirety as follows: Sec. 22-111. Special assessment bonds and multi-year financial obligations authorized. (a) For the purpose of paying all costs specified in§ 22-85 as may be assessed against the property specially benefitted and not paid by the city,special assessment bonds of the city may be issued as of such date and in such form as may be prescribed by the City Council. The bonds shall bear the name of the district and shall be payable in a sufficient period of years after such date to cover the period of payment, but subject to call as soon as hereinafter provided, in such convenient denominations as may be determined by the City Council. (b) All such bonds shall be issued upon estimates of the Director of Community Planning and Environmental Services or, if applicable, the General Manager of Utility Services approved by the City Council. The Financial Officer shall preserve a record of the same in a suitable book kept for that purpose. All such bonds shall be subscribed by the Mayor and countersigned by the Financial Officer with the corporate seal affixed and attested by the City Clerk. Facsimile signatures may be used. (c) The bonds shall be payable out of the money collected on account of the assessments made for the improvements or from the proceeds of refunding bonds. All money collected from such assessments for any improvements shall be applied to the payment of the bonds issued until payment in full is made of all the bonds, both principal and interest. If a reserve fund has been established for the district and any balance remains in the reserve fund after the bonds have been paid in full and the city has been fully reimbursed for costs associated with the district,any such balance shall be distributed proportionally to the assessed property owners in the district.For the purposes of this provision only, the term "assessed property owners" shall be construed to mean the then current property owners, unless an assessment has previously been paid in full, in which event it shall mean the party having made final payment of the assessment. The bonds may be used in payment of the cost of the district as herein specified or the City Council in its discretion may sell the bonds to pay such cost in cash. The bonds shall be negotiable in form and shall be in either registered or bearer form. The bonds shall bear interest at such rate as may be fixed by the City Council and payable semiannually. If such interest is evidenced by coupons, the coupons shall bear the facsimile signature of the City Clerk. (d) The city may issue multi-year financial obligations for the purpose of reimbursing the owner of any property within a special improvement district who has elected to pay in advance all or a portion of the costs specified in Section 22-85 in order to facilitate the construction of improvements within said district. (de) In connection with the issuance of bonds or other multiple-fiscal year financial obligations of the city payable solely from special assessments, the City Council may provide by ordinance or resolution for the submission of the question of issuing such bonds to the electors eligible to vote on the question. The City Council may provide by ordinance or resolution that all registered electors of the city shall be eligible to vote on the question or that only electors of the district shall be eligible to vote on the question. (ef) In connection with the issuance of bonds or other multiple fiscal year obligations of the city payable from special assessments which are additionally secured by a pledge of any other funds of the city, including the surplus and deficiency fund, the City Council may provide by ordinance or resolution for the submission of the question of issuing the bonds to all registered electors of the municipality. (fg) For the purposes of this section, an "elector of the district" shall mean a person who, at the designated time or event, is registered to vote in the general election in this state and: (a)who has been a resident of the district or the area to be included in the district for not less than thirty(30) days; or(b)who or whose spouse owns taxable real or personal property within the district or the area to be included in the district whether or not said person resides within the district. Where the owner of taxable real or personal property within the district is not a natural person, an "elector of the district" shall include a natural person designated by each such owner to vote for such owner. Such designation shall be filed in writing and filed with the City Clerk. Only one (1) such person may be designated by each owner. Introduced and considered favorably on first reading and ordered published this 16th day of August, A.D. 2005, and to be presented for final passage on the 6th day of September, A.D. 2005. Mayor ATTEST: City Clerk Passed and adopted on final reading this 6th day of September, A.D. 2005. Mayor ATTEST: City Clerk ORDINANCE NO. 091, 2005 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING ACQUISITION BY EMINENT DOMAIN PROCEEDINGS OF CERTAIN LANDS NECESSARY TO CONSTRUCT PUBLIC IMPROVEMENTS IN CONNECTION WITH THE TIMBERLINE ROAD, DRAKE ROAD TO PROSPECT ROAD PROJECT WHEREAS, construction of the Timberline Road, From Prospect Road to Drake Road Project (the "Project") is scheduled to start in 2005; and WHEREAS,the Project includes widening Timberline Road,widening Spring Creek Bridge, constructing sidewalks, construction of landscaped and hardscaped medians, installation of utility connections and installation of traffic signals; and WHEREAS, the Project will allow the area to improve from the currently failing levels of service and complete a critical transportation link in the area; and WHEREAS, it is necessary for the City to acquire certain property rights hereinafter described in Exhibits"A"through"I",attached hereto and incorporated herein by this reference(the "Exhibits"), for the purpose of constructing the Project; and WHEREAS, the City will negotiate in good faith for the acquisition of said property rights from the owners thereof; and WHEREAS, the acquisition of the property rights is desirable and necessary for the construction of the Project, is in the City's best interest and enhances public health, safety and welfare; and WHEREAS, the acquisition of such property rights may, by law,be accomplished through proceedings in eminent domain. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby finds and determines that it is necessary in the public interest to acquire the property rights described on the Exhibits for the purpose of constructing the Project. Section 2. That the City Council hereby authorizes the City Attorney and other appropriate officials of the City to acquire the said property rights for the City by eminent domain proceedings. Section 3. The City Council finds, in the event that acquisition by eminent domain of the property rights described in this Ordinance is commenced, that immediate possession is necessary for the public health, safety and welfare. Introduced,considered favorably on the first reading and o red published this 16t ay of August, A.D. 2005, and to be presented for final passage on th 6th ay of S ptember, 2 5. J Mayo ATTEST: City Clerk Passed and adopted on final reading this 6th day of September, A.D. 2005. Mayor ATTEST: City Clerk ITEM NUMBER: 21 A-E AGENDA ITEM SUMMARY DATE: August 16, 2005 FORT COLLINS CITY COUNCIL STAFF: Matt Baker SUBJECT Items Relating to the Timberline Road, Drake to Prospect Project and the Creation of Timberline and Prospect Special Improvement District(SID)No. 94. RECOMMENDATION Staff recommends adoption of these items. FINANCIAL IMPACT Street improvements are proposed for Timberline Road from Drake to Prospect. Most of the planned improvements are adjacent the e opient andvill e constructed through the Street Oversizing Program. In additi kv the developer#';of twoma rcels of property in the area have agreed to fund additional impements meeded inzorder to proceed with their developments in accordance with the City Adequate Public Facilities Ordinance (APF). These developers have contributed $2,500,000 to the City for the engineering design and construction of the APF improvements to the Timberline and Prospect Intersection. These funds would be reimbursed to the developers through assessments levied in conjunction with the proposed Special Improvement District No. 94. There are no City funds required for the SID improvements. EXECUTIVE SUMMARY A. Public Hearing and First Reading of Ordinance No. 090,2005, Relating to the Creation and Organization of the Timberline and Prospect Special Improvement District No. 94 and Providing for the Construction of Improvements Therein. B. First Reading of OrdinFce"No. 093 0 W mending Section 22-111 of the City Code Pertaining to the Issuarte of Bonds for ecial Impro`veinent Districts. C. Resolution 2005-091 S bli tfing a Ballot Issue to the-Registered Electors of the Proposed Timberline and Prospect Special Improvement District No. 94 as Part of the Special City Election on November 1, 2005. D. First Reading of Ordinance No. 091, 2005, Authorizing Acquisition by Eminent Domain Proceedings of Certain Lands Necessary to Construct Public Improvements in Connection with the Timberline Road, Drake Road to Prospect Road Project. August 16, 2005 -2- Item No. 21 A-E E. Second Reading of Ordinance No. 084, 2005, Appropriating Unanticipated Revenue in the Capital Projects Fund - Timberline Road Improvements Project and Appropriating Prior Year Reserves in the Street Oversizing Fund for Transfer to the Capital Projects Fund- Timberline Road Improv ents Prgje to Construct Improvements on Timberline Road Between Drake Prospect Roa `" . The Timberline Road, Drake to Prospect Project is4he most heavily congested intersection in the City. In the absence of any City capital improvement funding for this intersection, two impacted developers are electing to privately fund these improvements in order to proceed with their development projects. These developers are the majority property owners and have proposed the initiation of a special improvement district to distribute a portion of the costs through assessments to other undeveloped property in the area benefitted by the improvements. Resolution 2003-122 accepting the petition of the initiating property owner and Resolution 2005-083 accepting the engineering report and setting the method of assessment have previously been adopted by Council. The primary item being considered is the actual creation by ordinance of the Timberline and Prospect Special Improvement District No.94. In the creation of any SID, there is an opportunity for Council to hear and consider objections and protests. Notification of this hearing has been published and all property owners included in the proposed SID No. 94 have been otified by first class'mail"as required. The proposed Timberline and Prospect SID No.,9 will meet 11 of the adopted Council Policies regarding Special Improvement Districts. TTie creation of a Special Improvement District will spread the cost of the APF improvements to all undeveloped property which benefits from the construction. Ordinance No. 084, 2005, was unanimously adopted on First Reading on July 19, 2005. BACKGROUND Timberline Road, from Drake to Prospect, is currently the highest deficiency segment in the City's street network. The Timberline/Prospect intersection experiences failing levels of service in both the AM and PM peak hours. Attempts by the City to create a City Capital funding mechanism for the necessary improvements have not been successful. The City's Adequate Public Factities( )Or ar3c d es ` llow any additional development to impact failing intersections. A conceptual esti ate indicates that $2.5 million is needed to improve the intersection to meet-minim` of service necessary to allow additional development in the area. The improvements contemplated are: • Dedicated right turn lanes on all legs of the intersection • Double left turn lanes on Timberline • Additional through lanes on Timberline August 16, 2005 -3- Item No. 21 A-E These interim improvements will add capacity to the intersection, but will not include landscaped medians,concrete paving,enhanced crosswalks,or other elements not necessary to increase Levels of Service. There are two large development pa eels which are currently?"affected by the APF Ordinance. The James Company is cons the Side "ll development proj@con the east side of Timberline and t north of Drake and the St. Cha ' s Inve�s ent ou owns 80 acres on the west side of Timberline and north of Drake. Neither of ihesc dev errtcan build in the absence of improvements to Timberline/Prospect. These developers have elected to fund the $2.5 million APF improvements in order to proceed with their development projects. There are other smaller undeveloped parcels in the one-mile radius area around Timberline/Prospect that are also affected by the City's APF Ordinance. Some have expressed interest in participating in the cost of improving the Timberline/Prospect intersection while others indicated a strategy of waiting until the improvements are made in order to benefit, while avoiding any costs. The James Company and the St. Charles Investment Group proposed the formation of a special improvement district as a financing mechanism to allow for fair and equitable assessment of all benefrtting property owners. The terms of the District would generally be: 1. The amount financed will be$2.5 million, or the amount needed to make the "APF" improvements& the Timberline/Prospectntersection. 2. No municipal o ,ity-bac d bi ds , ill be issued. Financing will be by the developers, using cash or private placement bonds. The City would receive the assessments, but would not incur any financial liability. Actual payment of the$2.5 million by the James Company and St. Charles Investment Group will not occur until construction bidding(February 2006)to avoid capitalized interest. Security in the form of a performance bond for$2.5 million will be necessary in order for development to continue during the formation of the Special Improvement District. 3. The assessment method will be based on the APF ordinance and the benefit of the district components to undeveloped property. Several factors, including trip generation, trip distribution, delay and proximity to the intersection within a one-mile radius are used to calculate the impact and benefit for each property. Because the properties most significantly benefitted by the removal the PF re ' emenl are the undeveloped properties, it is only tho un evel pe pr erties that will be assessed. Additionally, many of the developed propertAkVithin the one-mile radius have already contributed to,improvemenis to the same intersection through the payment of Street Oversizing Fees and through construction requirements at the time they were developed. Some underutilized properties within the one-mile radius but not included within the SID will have a repayment obligation if they redevelop, and the amount to be assessed against the undeveloped properties will be reduced (by Second Reading) by the estimated amount of that repayment obligation once that calculation has been made. August 16, 2005 -4- Item No. 21 A-E 4. The properties included in the SID will begin repayment of their proportionate share (the assessments) upon completion of the construction and final accounting of the costs (tentatively in late 2006). The first two steps in creatin his SIDY ave e y en en. The majority property owner submitted a petition asking for' a creation of the di nct. A olution accepting the petition was approved on November 4, 2003, `ch directed the City Engirter to draw up plans and an estimate of the improvements. Staff completed the engineering report for the District and a resolution adopting the plans, specifications, estimated cost, and the method of assessment for the SID was approved on July 19, 2005. Item A - Creation Ordinance The first item presented for Council's consideration is the Ordinance which would create the SID. In considering this Ordinance, Council should hear all objections and protests concerning the creation of the District and the construction of improvements and should determine whether creation of the District is in the best interests of the City. The City has adopted Special Improvement District criteria and policies set forth in the"Special Improvement Districts Manual, Section II, Policies", as listed below. I. All public improyements`as described in Chapter 16 of the City Code shall be eligible for inclusion in an fmprovement District. However,the City may exclude certain improvements when it deems such improvements are not in the best interests of the City. 2. The City reserves the right to deny the creation of any District. 3. The proposed District should be consistent with the Master Street Plan and other planning documents of the City. The District should have an approved Master Plan. An approved Preliminary Plan may be required if local street or utility improvements are to be included within the District. The City may also require a Storm Drainage Plan to be submitted. 4. The total cost of the District should not exceed the appraised value of the improvements and the land e Iµd ' e Di, trict. 5. The amount o€_encumbrances do the land 1 he District including the assessments of the Dystrict,should n t exceed 00% of the value of the land including the improvements without being acknowledged by subordinate lien holders, or the posting of a surety from a recognized company for 100% of the principal and interest of the construction cost of the District. 6. The cost to be borne by the City in a District must be currently available or minimized and/or deferred through credits or other mechanisms. August 16, 2005 -5- Item No. 21 A-E 7. The City has the option to require property owners within the District to manage construction of the improvements themselves or through Professional Engineers where it is to the City's advantage to do so and the proposed managers can demonstrate experience and competence. 8. The City haste option " require .m iv rely managed Districts to bid and award contracts'r const require f t public i rovements when provided for in the District"§'Master eement and p ed in conformance with the City Charter. 9. Construction activities of District improvements should not cause extraordinary inconvenience to properties choosing not to be a party to the District. 10. Should a default in the assessment payments of a District occur, the City shall have the right to immediately proceed with all legal remedies including a tax deed and sale of the affected land. 11. The City Manager may establish administrative policies and procedures for the Improvement District process and may recommend appropriate fees to the City Council. -K 12. Proposed impr vements.should benefit the Citk'within a reasonable time frame. AL If the creation Ordinance is adopted by the Council, then, upon completion of construction of the District improvements in 2006, Council will hear an Ordinance assessing the cost of the improvements to the properties in the District for collection. Item B - Code Amendment As noted above, the City plans to reimburse the developers the $2.5 million they advanced, using revenues generated by the SID assessments.To meet the requirements of Article XX, Section 10 of the Colorado Constitution('TABOR"),a special election of SID property owners should be held on the November ballot. The ballot question would be whether the City can repay the developers over time through a multiple-year agreement. If the ballot measure fails,the assessment payment would be due in full immediately, so that the developers could be repaid within one calendar year. Thus, the second item to beEpecial de�edaby th C " n` is=.a proposed amendment to the Code authorizing this kind of electiohe prcfvision a ed t " `e Code is similar to one contained in the State statutes dealing wi impro em t district ut it includes elections to approve multiple year financial obligations, such as the one proposed here, as well as elections to authorize the issuance of bonds. The new Code language would,similar to the State language,enable the City Council to submit such questions to just the electors in the special improvement district if the source of repayment will consist solely of special assessments. However, if the source of repayment of the bonds or other August 16, 2005 -6- Item No. 21 A-E multiple year financial obligation will be supported by a pledge of other City revenues,the question would have to be submitted to the City-wide electorate. At the election, each owner of a parcel of property in the district will be entitled to cast one vote either directly or, in the case of owner dt-is no t person, through a designated natural person who is a registered elect r in the owner, , Item C - Ballot Ouestion ~' - The third item is a Resolution placing this question on the November ballot. Item D - Eminent Domain With the fourth item, staff is requesting authorization of eminent domain for all property acquisitions in the Project, in case such action is necessary. Property owners were notified of the upcoming project and its impacts and over the last several months staff has met with the affected property owners. Their input was considered during the engineering design and helped resolve many issues, including access, storm water, utility service and irrigation water. Staff began negotiations for the purchase of necessary property interests with the property owners and is completing appraisals for offers to each property owner. Staff is optimistic that all property negotiations can be completed iegood faA p"isior io thq staW of e project. However, given the timing of such a large construe on proje t and sch h*uling theork of outside parties, such as the railroad for its railroad crossinnd the corriparfor gas line relocations, timely acquisition of the property interests is necessary. All affected property owners were notified by certified mail of this request to Council for authorization of eminent domain. Item E - Appropriations The remaining item is related to the construction of the roadway improvements. The Second Reading of an appropriation ordinance, which was unanimously adopted on First Reading on July 19, 2005 transfers money received from the developers and the Street Oversizing Fund into the project account. Summary City departments are working trgether , inc e tifities d roadways needed for the planned Police Facility, and will inclu these improvementgin the to ay contract in order to save time and money for the Police Faci Pmitcl Staff is also working with property owners who requested to have their frontage improved with this project. Fleischli Enterprises and Integrated Equities decided to participate in this project for their, as well as the City's benefit. Both property owners agreed to contribute their local street portion and are completing the engineering design along their frontages to include in the construction of Timberline Road. August 16, 2005 -7- Item No. 21 A-E Summary of costs: APF Improvements $2,500,000.00 City of Fort Collins Police Faci es 2,V 291 00 Sidehill Development $829'5Yt00 St. Charles Investments $354,014.00 Fleischli Enterprises $115,447.00 Integrated Equities $119,830.00 Street Oversizing Program $3,489,361.00 Total Construction Cost: $8,680,455.00 Construction is planned to start this fall with the widening of the bridge over Spring Creek, expansion of the Great Western Railroad crossings on both Timberline and Prospect, and utility relocations. Construction of the roadway improvements will begin in the spring of 2006 and be completed by the end of the year. Transportation Board Recommendation Attached is a letter from Brent Thordarson, Transportation Board Chair, addressing the Board's recommendation to the City C ' ci e mm o"eiNlinAoad SID. The Transportation Board has been included in th esign I ss ds this project and the SID No. 94 funding, which allows interim improvlements to< a built atme. Although the Transportation Board regrets that there is presen y no additional-capital sales tax available for the ultimate improvements, there will be significant benefits to the transportation network by proceeding with the construction of the interim improvements. ATTACHMENTS 1. Project Vicinity Map 2. Map of Properties Included in District 3. July 20, 2005 memo from Transportation Board