HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/29/2005 - FIRST READING OF ORDINANCE NO. 166, 2005, AUTHORIZ ITEM NUMBER: 13
AGENDA ITEM SUMMARY DATE: November29, 2005
FORT COLLINS CITY COUNCIL STAFF: Chuck Seest
Chip Steiner
SUBJECT
First Reading of Ordinance No. 166, 2005, Authorizing the Transfer of Appropriations Between
Capital Improvements Within the Downtown Development Authority Operations and
Maintenance Fund Related to the City of Fort Collins, Colorado, Downtown Development
Authority Taxable Subordinate Tax Increment Revenue Bonds, Series 2004A.
RECOMMENDATION
The DDA Board of Directors and staff recommend adoption of the Ordinance on First Reading.
FINANCIAL IMPACT
This Ordinance transfers appropriations in the amount of $800,000 from a cancelled capital
improvement to new and existing capital improvements and this transfer does not increase
overall DDA appropriations.
EXECUTIVE SUMMARY
The City of Fort Collins created the Downtown Development Authority ("DDA") to make
desired improvements in the downtown area. Through tax increment financing, the DDA has
made significant contributions to the redevelopment and improvement of the downtown area.
This Ordinance authorizes the transfer of unexpended appropriations in the Downtown
Development Authority Operations and Maintenance Fund resulting from the cancellation of an
improvement identified in Ordinance No. 89, 2004, the 2004 Bond Appropriation Ordinance for
the DDA. New improvements have been identified or are in process of being identified and an
existing improvement will receive increased funding.
The total of the improvements and associated issuance costs related to the 2004 Bond
Appropriation Ordinance was $6,235,000. The Board of Directors of the DDA (the "Board")
reviewed and recommended all of these improvements. The following projects are included:
November 29, 2005 -2- Item No. 13
a. Cortina Mixed Use project $1,687,000
b. Pine Street Lofts 500,000
c. Mason Street North 280,000
d. Museum Expansion and Historic
Webster House 1,100,000
e. Information Center 70,000
f. Old Town Square Renovation 1,000,000
g. Mason Street Parking Ramp 800,000 (cancelled)
h. Miscellaneous Other Projects 753,000
i. Cost of Issuance 45,000
$6,235,000
The Mason Street Parking Ramp ($800,000) has been cancelled. These appropriations
will be transferred to new or expanded improvements as noted below:
Old Town Square Renovation $200,000 (existing)
Urban Living Lofts $350,000 (new improvement)
Miscellaneous Other Projects $250,000 (new improvement).
BACKGROUND
All the improvements listed for funding through this Series 2004A Bond Issue have been
approved by the Board. All approvals by the Board are made contingent upon City Council
appropriation of the necessary funds to fulfill the DDA's commitment to the improvement. With
the exception of those projects that are purely public in nature, no DDA expenditures are to be
made until the improvements are completed and have received certificates of occupancy from
the City. A summary for the improvement being cancelled, the new improvements and
expansion of an existing improvement is described below.
CANCELLED IMPROVEMENT:
Mason Street Parking Ramp. The developer of the Cortina mixed-use project had proposed
adding a deck to the Mason Street Parking Lot (owned by the DDA). He would have done this
entirely at his own expense. However, the proposal had sparked some interest by neighbors in
the area to add a third level and thereby double the available public parking. The funding
allocation in 2004 bond deal was anticipating that possibility. However, the developer of
Cortina found an alternative to address the parking requirements related to the proposal. As a
result, DDA participation in a Mason Street Parking Ramp is no longer necessary.
EXISTING & NEW IMPROVEMENTS:
1. Additional Funding for Old Town Square Renovation Old Town Square was built in
1984. It is 20 years old and in need of renovation. The DDA originally proposed to
completely revamp the landscaping program so that there will be year-around visual
interest, repair broken and dangerous concrete banding, repair ground and overhead
lighting, replace all the planter pots, restore and/or replace all the benches and stone
seating surfaces, repaint all signage and lighting standards, replace all trash receptacles
November 29, 2005 -3- Item No. 13
repair or replace the flagstone pavers at information kiosks and drinking fountains, repair
or replace all bollards, completely clean, seal and re-level the cast decorative pavers that
cover most of the plaza.
As reflected above, the DDA originally set aside $1,000,000 for the above improvements.
The contractor's bid for these improvements was approximately $1,600,000. See
attached staff memo. DDA proposes completing a majority of the improvements and is
therefore requesting an additional $200,000 for this project.
2. Urban Livine Lofts. Urban Living Lofts is located at 210-212 West Magnolia. The
proposed building will be four stories and include 18 living units, about 3,000 square feet
of commercial space and 7,000 square feet of covered parking. Total project cost is
estimated at $8.9 million. The project fits well into the neighborhood. Brick, hipped roof
lines, lots of glass, and balconies are respectful of adjacent homes within the
neighborhood. The Board recommended a $350,000 commitment at its August 4, 2005
meeting. See attached Board minutes and architectural drawing.
3. Miscellaneous. The purpose is to fund minor improvements and/or to serve as a
contingency for unanticipated costs for approved projects.
SUMMARY
The Board has met to review each of these improvements. For the reasons indicated above, the
Board recommends each improvement for funding. The Board, DDA staff and City staff
recommend adoption of the ordinance.
ATTACHMENTS
1. Staff Memorandum on Urban Living Lofts to DDA Board
2. Staff Memo on Reallocation of Old Town Square Funds
3. DDA Minutes —August 4, 2005
4. Architectural Rendering of Urban Living Lofts
ORDINANCE NO. 166, 2005
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE TRANSFER OF APPROPRIATIONS BETWEEN CAPITAL
IMPROVEMENTS WITHIN THE DOWNTOWN DEVELOPMENT AUTHORITY
OPERATIONS AND MAINTENANCE FUND RELATED TO THE CITY OF FORT
COLLINS, COLORADO, DOWNTOWN DEVELOPMENT AUTHORITY TAXABLE
SUBORDINATE TAX INCREMENT REVENUE BONDS, SERIES 2004A.
WHEREAS, on April 21, 1981, the City of Fort Collins, Colorado, adopted Ordinance
No. 46, 1981, establishing the Fort Collins, Colorado, Downtown Development Authority; and
WHEREAS, the Downtown Development Authority's Plan of Development was
approved by the City on September 8, 1981, and established the purpose of the Authority and the
types of projects in which the Authority would participate; and
WHEREAS, on June 1, 1982, a special election was held pursuant to Section 31-25-
807(b) of the Colorado Revised Statutes approving the issuance by the City of up to $25,000,000
in tax increment obligations to finance certain projects of the Downtown Development
Authority; and
WHEREAS, through the adoption of Ordinance No. 089, 2004, of the Council of the City
of Fort Collins, the Council appropriated proceeds from the issuance of the City of Fort Collins,
Colorado, Downtown Development Authority Taxable Subordinate Tax Increment Revenue
Bonds, Series 2004A (the "Bonds"), for expenditure on certain capital improvements in the
amount of$6,235,000; and
WHEREAS, a certain capital improvement within Ordinance No. 089, 2004, related to
the Mason Street Parking Ramp has been cancelled, making available unexpended
appropriations for the construction of certain new improvements in the downtown area of the
City as follows:
a. Old Town Square Renovation $200,000 (existing project)
b. Urban Living Lofts 350,000
c. Miscellaneous Other Projects 250,000
$800,000
WHEREAS, Article V, Section 10, of the Charter of the City of Fort Collins authorizes
the City Council to transfer by ordinance any unexpended and unencumbered amount or portion
thereof from one fund or capital project to another fund or capital project provided that the
purpose for which the funds were initially appropriated no longer exists.
WHEREAS, the Board of Directors of the Downtown Development Authority has
approved the aforementioned projects.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS that the unexpended appropriated amount of EIGHT HUNDRED
THOUSAND DOLLARS ($800,000) is hereby authorized for transfer from the Downtown
Development Authority Operations and Maintenance 2004 DDA Bond Projects (Mason Street
Ramp Project) and the newly adopted projects, as follows:
a. Old Town Square Renovation $200,000 (existing project)
b. Urban Living Lofts 350,000
c. Miscellaneous Other Projects 250.000
$800,000
Introduced and considered favorably on first reading and ordered published this 29th day of
November, A.D. 2005, and to be presented for final passage on the 20th day of December, A.D.
2005.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading this 20th day of December, A.D. 2005.
Mayor
ATTEST:
City Clerk
ATTACHMENT
Staff Memorandum on Urban LivinLy Lofts to DDA Board
TO: DDA Board of Directors
FROM: Chip Steiner
DATE: August 2, 2005
RE: Urban Living Lofts
Attached to this memorandum is a request for DDA participation in a project called
Urban Living Lofts located at 210-212 West Magnolia and just east of the home of Dave
and Paula Edwards.
The proposed building will be four stories and include 18 living units, about 3,000 square
feet of commercial space and 7,000 square feet of covered parking. Eight of the parking
stalls will include lifts so that two vehicles can fit in the square footage usually allocated
to just one vehicle.
Total project cost is estimated at$8.9 million. The for-sale residential units range in
price from$326,500 to $785,700($300- $450/st). Office space is valued at$611,550
($225/sf). Annual tax increment estimated by the developers is $74,050 which would
generate $370,248 over five years. The request to the DDA is for$425,786 based on the
actual projected tax increment, the emphasis on residential, quality construction
materials, and energy efficiency.
The project is attractive and fits well into the neighborhood. Brick,hipped roof lines, lots
of glass, and balconies are respectful of the design of the Edwards home next door. The
parking solution is unique and creative. Importantly,there is little exposed surface
parking.
Staff has a few concerns:
1. 1,200 square feet of office space is located in the basement of the building. Will
it attract buyers at$225/sP Will the County appraise it at that value?
2. The project is expensive. On a square foot basis it is not dissimilar to Cortina.
Yet staff does not believe it will be appraised at a similar level.
3. Assuming the project comes on line in 2006, increment will not begin flowing
until 2008. Even if the building is valued at 100 percent of the developer's
estimates, the gross increment generated over a four-year period would only be
about$296,000.
Staff believes the project's appraised value will be closer to $6 million. This would
generate about$64,300 annually in tax increment or$257,300 over four years. Providing
a 15 percent allowance for construction quality, residential emphasis, and energy
efficiency would suggest DDA participation at$295,900.
Because of the approaching sunset of the DDA tax increment program, it is becoming
increasingly difficult to participate in projects at levels comparable to past years based
primarily on the amount of tax increment being generated. Therefore, staff recommends
the Board consider using other increment to increase participation in this project to
$350,000.
ATTACHMENT
TO: Honorable Mayor and Members of City Council
FROM: Chip Steiner,DDA Executive Director
DATE: November 22, 2005
RE: Re-allocation of Old Town Square and alley improvement funds
The original appropriation for the renovation of Old Town Square and alley
improvements was $1.8 million with$1 million for the Square and the remaining
$800,000 for the alleys. The bid came in at around$2.6 million of which$960,000 was
for the alleys.
The DDA decided to drop the comprehensive renovation of Old Town Square. Rather, it
intends to use the funds for the alleys and to make incremental improvements to the
Square itself. Incremental work includes replacement of the fountain pumps,
replacement of lights, repair low areas in the paving surface,restore and/or replace
benches, replace movable planters, repair and clean all sandstone surfaces, replace trash
receptacles, and if funding is available,replace the information kiosks.
Re-allocation of the funds will allow the alley work to proceed,provide a contingency for
that work(to date two change orders in excess of$14,000 have been made), and to
proceed with incremental improvements to Old Town Square.
ATTACHMENT
DOWNTOWN DEVELOPMENT AUTHORITY
REGULAR DIRECTOR'S MEETING
MINUTES
THE. BOARD OF DIRECTORS OF THE DOWNTOWN DEVELOPMENT AUTHORITY MET IN REGULAR
SESSION AT 7,30 A.M. ON AUGUST 4, 2005 IN THE MEETING ROOM AT HOME STATE BANK
LOCATED AT 303 EAST MOUNTAIN AVENUE, FORT COLLINS, ' CO 80524.
BOARD PRESENT: KIM JORDAN, CHAIR, JACK WOLFE, KURT KASTEIN GEORGE BRELIG, BILL
SEARS, CARY HEWITT, STEVE TAYLOR, LARRY STROUD, JASON MEADORS
STAFF: ROBERT STEINER, EXECUTIVE DIRECTOR, LUCIA LILEY, COUNSEL, LINDA GULA
GUESTS: DARIN ATTEBERRY, KAREN WEITKUNAT, KAREN GARRITSON, DAVID SHORT.
MR.STEINER REFERRED TO A REQUEST FOR DDA PARTICIPATION IN A PROJECT CALLED URBAN
LIVING LOFTS LOCATED AT 210-212 WEST MAGNOLIA. HE STATED THERE ARE 18
RESIDENTIAL UNITS AND A SMALL AMOUNT OFFICE SPACE. ESTIMATED COST OF THE PROJECT
IS $8.9 MILLION_ THE DEVELOPERS HAVE PROJECTED $74,050 IN ANNUAL INCREMENT,
ACCUMMULATING $370.248 OVER FIVE YEARS. THE REQUEST TO THE DDA IS FOR $425,078.
HE STATED STAFF IS SUPPQRTING THE PROJECT; IT IS ATTRACTIVE, WELL DESIGNED, AND
IT INCLUDES MANY ENERGY EFFICIENT FEATURES.
STAFF BELIEVES THE PROJECT' S APPRAISED VALUE WILL BE CLOSER TO $6 MILLION. THIS
WOULD GENERATE ABOUT $64,300 ANNUALLY IN TAX INCREMENT OR $257,300 OVER FOUR
YEARS. HE WENT ON TO NOTE BECAUSE OF THE APPROACHING SUNSET OF THE DDA TAX
INCREMENT PROGRAM, IT 1S BECOMING INCREASINGLY DIFFICULT TO PARTICIPATE IN
PROJECTS AT LEVELS COMPARABLE TO PAST YEARS BASED PRIMARILY ON THE AMOUNT OF TAX
INCREMENT BEING GENERATED. STAFF RECOMMENDS THE BOARD CONSIDER PARTICIPATION IN
THIS PROJECT AT $350,000.
ALAN STROPE AND COREY SEITZ, PROJECT DEVELOPERS, GAVE AN OVERVIEW OF WHAT IS
BEING PROPOSED. THEY FOCUSED ATTENTION ON THE HIGH QUALJTY MATERIALS AND THE
ENERGY SAVING FEATURES. MR. DAVE EDWARDS, THE PROPERTY OWNER AND RESIDENTIAL
DWELLER ADJACENT TO THE PROPOSAL, SUPPORTED THE PROJECT. HE STATED THEY WILL BE
EXCITED TO HAVE NEW NEIGHBORS AND HE SUPPORTS HIGHER DENSITY RESIDENTIAL.
THERE WERE BOARD COMMENTS AND DISCUSSION ABOUT THE ASSESSED VALUE OF THE PROJECT
AND THE TAX INCREMENT THAT THE DDA MIGHT RECEIVE FROM THEIS PROJECT.
MR. HEWITT MOVED TO COMMIT UP TO $350,000 TO THIS PROJECT, STATING IT IS
COMPATIBLE WITH THE NEIGHBORHOOD, AND IT IS A GOOD QUALITY PROJECT. SECONDED BY
MR. WOLF AND PASSED UNANIMOUSLY.
ATTACHMENT 4
ZGrBa� .C°iciwj G�ewaeytra. L'Ee
Fi...a Yp .
ra
fir,• 1501 sxs