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HomeMy WebLinkAboutCOUNCIL - SUMMARY AGENDA - 05/12/2009 - SUMMARY AGENDA (ADJOURNED MEETING) Cityclif Aer& CITY F• • • AGENDA Doug Hutchinson, Mayor Council Chambers Kelly Ohlson, District5, Mayor Pro Tern City Hall West Ben Manvel, District 1 300 LaPorte Avenue Lisa Poppaw, District 2 Fort Collins, Colorado Aislinn Kottwitz, District 3 6 p.m. Wade Troxell, District 4 Cablecast on City Cable Channel 14 David Roy, District 6 on the Comcast cable system Darin Atteberry, City Manager Steve Roy, City Attorney Wanda Krajicek, City Clerk The City of Fort Collins will make reasonable accommodations for access to City services, programs, and activities and will make special communication arrangements for persons with disabilities. Please call 221-6515 (TDD 224- 6001)for assistance. ADJOURNED MEETING May 12, 2009 1. Call Meeting to Order. 2. Roll Call. 3. First Reading of Ordinance No. 053, 2009, Appropriating Funds From the City's General Fund Reserves for Transfer to the Fort Collins Urban Renewal Authority for the Purpose of Providing a Loan for the Rocky Mountain Innovation Initiative Project. The new facility for RMI2 will cost approximately $7.1 million to develop and construct. The City will provide a loan of $5.3 million to the URA to cover development and construction costs, a portion of which will be offset by the $2.8 million in pledged TIF. The proposed New Market Tax Credit (NMTC) financing solution will contribute $1.8 million in project equity. In the long-term, RMI2 will owe approximately $2.6 million on a$7.1 million project as a result of this financing solution. Ordinance No. 053, 2009, authorizes a loan, as authorized by City Council Resolution 2008-121, to the URA in the amount of $5,303,939. The loan will enable the URA to lend Rocky Mountain Innovation Initiative Properties, LLC (RMI2 Properties, LLC) the funds necessary to construction a new facility for the business incubation program. RMI2 Properties, LLC is associated with the Rocky Mountain Innovation Initiative, which runs a successful science and technology incubation program on behalf of the City and other sponsors. The deliberations as City Council should focus on the worthiness of this investment as a key economic development tool for the City and Region. The underlying details of the project and the financing solution should be questioned and discussed by the URA Board of Commissioners. The loan will have a 20 year term, 2.5 percent interest rate, and stipulate interest only for the first seven years consistent with the City's Investment Policy. In addition, the loan agreement stipulates two disbursements from the loan. These disbursements will mirror the anticipated disbursements required to fund the construction of the RMI2 facility, which will be owned and operated by RMI2 Properties, LLC. The first disbursement of $1,100,000 will be used to fund a "Bridge Loan" to RMI2 Properties, LLC for the development costs occurring prior to the closing of the NMTC loans. These development costs include: subdivision of the property, entitlement, development review, building design, and land acquisition. The second disbursement of $4,203,939 will occur when the NMTC loans close and provide the URA the necessary cash to fund the senior leverage loan in the NMTC structure. 4. Other Business. 5. Adiournment. FORT COLLINS Q " u r b a n r e n e w a l a u t h o r i t y Doug Hutchinson, President City Council Chambers Kelly Ohlson, Vice-President City Hall West Ben Manvel 300 LaPorte Avenue Lisa Poppaw Fort Collins, Colorado Aislinn Kottwitz Wade Troxell at the conclusion of the Adjourned Meeting David Roy Cablecast on City Cable Channel 14 on the Comcast cable system Darin Atteberry, City Manager Steve Roy, City Attorney Wanda Krajicek, City Clerk The City of Fort Collins will make reasonable accommodations for access to City services,programs,and activities and will make special communication arrangements for persons with disabilities. Please call221-6515(TDD 224-6001)for assistance. MEETING AGENDA May 12, 2009 1. Call Meeting to Order. 2. Roll Call. 3. Resolution No. 017 Authorizin the he Negotiation and Execution of a Loan Agreement with the City of Fort Collins for the Rocky Mountain Innovation Initiative Project. The new facility for RMI2 will cost approximately $7.1 million to develop and construct. The City will provide a loan of $5.3 million to the URA to cover development and construction costs, a portion of which will be offset by the$2.8 million in pledged TIF. The proposed New Market Tax Credit (NMTC) financing solution will contribute $1.8 million in project equity. In the long-term, RMI2 will owe approximately $2.6 million on a $7.1 million project as a result of this financing solution. Resolution No. 017 authorizes the first disbursement of the $5,303,939 borrowed from the City. The initial disbursement will cover the cost of development prior to the beginning of construction and the closing of the New Market Tax Credit (NMTC) loans. These development costs include: subdivision of the property, entitlement, development review, building design, and land acquisition. The deliberations of the URA Board of Commissioners should evaluate the worthiness of this investment of City funds, the details of the proposed project, and the aspects of the financing solution. The"Bridge Loan"made to RMI2 Properties,LLC will include$1,100,000 payable on June 1,2010 with an interest rate of 2.5%. The loan will require annual payments of principal and interest. The loan is anticipated to be paid in full at the time the NMTC loans close, estimated at or before construction begins on the facility in November 2009. Typically, the URA approves a proposed redevelopment project by adopting a resolution enacting a redevelopment agreement and stipulating a Tax Increment revenue dedication amount. These will not be considered this evening because they rely on the details of the NMTC loans. The legal documents enabling the NMTC loan have not been completely drafted and reviewed at this time. However, both the Colorado Housing and Finance Authority (CHFA) and US Bank Community Development Corporation (USBCDC) have provided a loan commitment and term sheet which stipulate the broad outlines of the NMTC loans. These documents have been executed by RM12 and are contingent upon the URA providing its portion of the funds to the agreement. 4. Other Business. 5. Adjournment. F6rt Collins Doug Hutchinson, Mayor Council Information Center Kelly Ohlson, District 5, Mayor Pro Tem City Hall West Ben Manvel, District 1 300 LaPorte Avenue Lisa Poppaw, District 2 Fort Collins, Colorado Aislinn Kottwitz, District 3 at the conclusion of the Urban Renewal Authority Meeting Wade Troxell, District 4 Cablecast on City Cable Channel 14 David Roy, District 6 on the Comcast cable system Darin Atteberry, City Manager Steve Roy, City Attorney Wanda Krajicek, City Clerk The City of Fort Collins will make reasonable accommodations for access to City services, programs, and activities and will make special communication arrangements for persons with disabilities. Please call 221-6515 JDD 224- 6001)for assistance. WORK SESSION May 12, 2009 1. Call Meeting to Order. 2. 2009 Transit Strategic Plan. (1 hour discussion) The purpose of this project is to update the Transit Strategic Plan(TSP), which serves the Fort Collins Urbanized Area and to address adopted City Plan Policies relating to transit services. The Transit Strategic Plan update is a collaborative partnership among the City of Fort Collins-Transfort, City of Loveland Transit (COLT), and the Poudre School District (PSD). The planning effort has focused on fostering a dialogue with the community, developing near-term and build-out phases for improvements, and crafting a financial plan that provides practical funding sources for implementation. 3. Draft Sound Standards for the Downtown Entertainment District. (1 hour discussion) The primary purpose of this work session is to update Council on the progress to date regarding the Draft Sound Standards for the Downtown Entertainment District. This item was presented to Council at a work session in April 2007. Since there is a new Council, and with new information, a progress report is in order. 4. Other Business. 5. Adjournment.