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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 09/01/2009 - FIRST READING OF ORDINANCE NO. 087, 2009, APPROPRI ITEM NUMBER: 11 AGENDA ITEM SUMMARY DATE: September 1, 2009 FORT COLLINS CITY COUNCIL STAFF: Matt Robenalt Kathy Cardona SUBJECT First Reading of Ordinance No. 087, 2009, Appropriating Prior Years Reserves in the Downtown Development Authority Fund for Expenditure on Projects in Accordance with the Downtown Plan of Development. RECOMMENDATION Staff and the Downtown Development Authority Board recommend adoption of the Ordinance on First Reading. FINANCIAL IMPACT The DDA Board has authorized expenditure on the following projects or programs which will be funded with this appropriation: 1. Arts and Culture Investments • Purchase of Warehouse for Use by Lincoln Center Non-profit Performance Groups $1,800,000 • Bas Bleu Theater Lease 220,000 • Lincoln Center Rental and Tech Fees Underwriting 144,063 2. Mitchell Block Public Improvements 427,502 3. Elks Building Environmental Abatement and Deconstruction 421,000 4. Facade Grant Program—Funding 350,000 5. Fort Collins Housing Authority Project 53,813 6. Relocation of Transcend Sculpture 50,000 7. Holiday Lights Display Contribution for 2009 35,000 $3,501,378 EXECUTIVE SUMMARY This Ordinance appropriates unanticipated revenue from interest earnings in the amount of $332,044, from project savings in the amount of$1,555,249; and from the transfer of funds from projects not currently ready for reimbursement to projects or programs that are ready in the amount of $1,614,085. The Downtown Development Authority (DDA) Board has authorized the expenditure on the various projects and programs. September 1, 2009 -2- Item No. 11 BACKGROUND The Downtown Development Authority was created in 1981 with the purpose, according to State statute, of planning and implementing projects and programs within the boundaries of the DDA. The DDA and City adopted a Plan of Development that specifies the projects and programs the DDA would undertake. In order to carry out the purposes of the State statute and the Plan of Development the City, on behalf of the DDA, has issued various notes and tax increment bonds. The first issuance of tax increment bonds occurred in 1984, with subsequent issues through 2008. Over the past year,proceeds from DDA tax increment financing(TIF)revenues that have not been spent have accumulated interest earnings. These funds, as well as the project savings, need to be appropriated for expenditure. The amount of interest earnings is currently $332,044 and project savings is $1,555,249. Also, the DDA needs to transfer bond funds from projects that are not yet ready for reimbursement to those projects that have accelerated schedules and soon ready for reimbursement. These funds,in the amount of$1,614,085,need to be appropriated for expenditure. Staff has provided a summary for each project or program. All the projects/programs listed for funding through this appropriation have been approved by the DDA Board of Directors. All approvals by the DDA Board are made contingent upon City Council appropriation of these funds to fulfill the Authority's commitment to the projects. With the exception of those projects or programs which are purely public in nature,no DDA expenditures are to be made until projects are completed and have received certificates of occupancy from the City. 1. Arts and Culture Investments a. Purchase of Warehouse for use by Lincoln Center Non-profit Performance Groups b. Bas Bleu Theater Lease C. Lincoln Center Rental and Technical Fees Underwriting In April 2009, the DDA Board was presented with a proposal and rationale for broadening its investments in downtown non-profit arts,cultural and scientific organizations. These organizations contribute to the diversity of experiences available to Fort Collins residents and visitors and to the cultural and economic vitality essential to preserving a community quality of life and a healthy, vibrant downtown. According to Arts and Economic Prosperity III, 2007, a study conducted by the Americans for the Arts,and funded by the DDA,the local economic impact of the arts was nearly$16,000,000 in 2005. Audience spending was estimated at$10.6 million, and arts and culture organization spending was $5.3 million,a 2:1 ratio. Nationally,"the arts and culture industry,unlike many industries,leverages a significant amount of event-related spending by its audiences. Attendance at arts events generates related commerce for local businesses such as restaurants,parking garages,hotels and retail stores" (Arts and Economic Prosperity III, 2007). The City of Fort Collins Citizen Survey, published in December 2008, indicated that 63% of respondents thought the "availability and diversity of arts and cultural activities" in Fort Collins was "very good" or"good." This rating was considered "above average" in comparison to other communities on a national level, but "similar" in comparison to other Front Range communities. In one sense,these comparative results on the national level speak to the strengths of our art/cultural September 1, 2009 -3- Item No. 11 offerings. However,the"similarity"rating with other Front Range communities reveals that if these activities are not available in Fort Collins, local audiences would not have to travel far to find comparable activities in another community. The challenges of the current economy have placed several long-standing arts and culture non-profit groups that drive economic activity in the downtown in a position of having to decide whether to curtail their performance schedule and/or find,locations outside the main venues of the Lincoln Center to hold their performances. The concern this raises for the DDA is that if destination activities created by the local arts/culture and scientific non-profit organizations diminish in diversity and frequency, so likely does the ancillary expenditures on shopping,dining, lodging and other services. The DDA investments are intended to continue the development of arts/culture activities that attract audiences that drive ancillary economic activity in the downtown. The investments were made using the following rationale: 1. Meets the statutory requirements and limitations of Title 31,Article 25,Part 8 of the Colorado Revised Statutes, as amended, regarding Downtown Development Authorities; 2. Demonstrates public benefit in the investment of DDA funds within the DDA boundary; and 3. Assists in the inducement of financial viability of non-profit arts/culture and scientific organizations that produce and/or exhibit their offerings in the downtown to create the following impacts: • Effectively promote Downtown Fort Collins as an attractive place to live and visit Provide a positive economic impact on ancillary downtown businesses (retail, restaurants, and providers of recreational opportunities, attractions and services) • Bring external dollars into the Fort Collins community • Generate overnight stays in lodging properties within the Fort Collins city limits. 1. Arts and Culture Investments a. Purchase of a Warehouse for Use by Lincoln Center Non-profit Performance Groups The DDA is under contract to purchase a warehouse located at 725 East Vine Drive and is conducting standard due diligence inspections. The closing is scheduled for late September. The purpose of this purchase is to provide a permanent facility that would be made available at no charge to Fort Collins based non-profit performance groups that utilize the Lincoln Center's mini- theater and performance hall. Those groups holding the most frequent performances were engaged by the Lincoln Center staff to develop space utilization ideas. The warehouse use plan would address: set construction and storage, costume construction and storage,prop construction and storage, set dressing/furniture storage, staging area, painting staging area/paint storage,rehearsals, meeting rooms, office/commons area. The warehouse would not be September 1, 2009 -4- Item No. 11 available for performances: free, ticketed, or other forms of fee-structured activities. The DDA believes it is imperative to keep all performance activities focused in the venues located in the central business district where the ancillary economic impact on restaurants, retail stores, and lodging is greatest. Originally, the DDA looked at leasing the warehouse for'five years, but the current sale price was slightly less than twice the cost of the five-year lease, so the DDA Board chose to take advantage of the low sale price and invest in ownership of the facility. Benefits of the warehouse purchase: The warehouse will provide functional space needed by the performance and theatrical groups to undertake intensive behind-the-scenes preparation for performances. These modest, but important savings to individual non-profits resulting from the DDA investments are likely to be invested by the performance groups to create higher quality sets, costumes,props,and for purchasing the rights to produce a broader range of performances,and thus offer new and enhanced experiences to local audiences. The success of the non-profits will also gain the ancillary audience expenditures in other downtown entertainment businesses,such as restaurants and retail stores. Second, the Lincoln Center staff involvement in the oversight of the warehouse will provide an opportunity to coordinate with the groups in the design and construction of sets and other major props. The opportunity for greater coordination will create efficiencies and savings in time and expense when transporting and assembling the sets at the Lincoln Center. The performance groups that will use the warehouse mostly operate today from scattered sites such as private garages and basements, or donated spaces that are available only until such time as a paying tenant displaces them. Access to this warehouse facility will create a greater sense of permanence and predictability for the performance groups. Additionally, an opportunity for cross-collaboration in many of the theatrical production steps will likely grow from the clustering of staff and volunteer talents. Other communities that have created this type of shared production facility often see the emergence of idea and resource sharing that leads to discussions and partnerships that enrich the skill sets of other groups. It is possible one group that has a great production department could share ideas and services with another group that is very experienced and efficient in advertising and marketing. By discussing operations,comparing notes, and making some resources available to other performance groups, it is likely that all the groups will become more equipped to make quick innovations and more efficient utilization of their financial resources. Looking further into the future, it is possible that small businesses that support theatrical and performance activities in this facility might emerge from the cross-collaboration efforts and entrepreneurial endeavors of those involved. b. Bas Men Theatre Lease The DDA Board approved a lease agreement with Bas Bleu Theater for a term of 10 years to provide time and access, free of charge,to user groups that desire to utilize either the lobby space or theater hall. The lease agreement provides for: September 1, 2009 -5- Item No. 11 1. The DDA's lease payment of$220,000 (one-time)will be guaranteed by a promissory note and secured by a deed of trust. 2. Use of a graduated payment schedule that pays the DDA back through"time and use"of the building on an annual basis and is equivalent to approximately $22,000 per year. 3. Assumption of$8.00 per square foot remains the basis of the lease rate, as this is the lower end of market lease rates for space in the River District. 4. Amount of space in the building available for use by other groups is 2,400 square feet (lobby) and 4,380 square feet (theatre) for a total of 6,780 square feet. 5. Time available for use of the lobby and theatre: a. Theatre. The theatre shall be available for a minimum of 130 days per master calendar year (August 1 through July 31). i. Full Use of Stage: Full use of the theatre stage must be possible on 21 of the 130 Theatre Days. Such 21 days shall be divided into three (3) blocks of seven (7) consecutive days on the master calendar. During these days the theatre stage shall be completely vacant, such to allow a full theatrical performance thereon. ii. Partial Use of Stage: Partial use of the theatre stage must be possible for the remaining 109 of the 130 Theatre Days. b. Lobby. The Lobby shall be available for a minimum of 173 days per master calendar year. C. Hours of Availability. Generally,the lease provides for access during the following hours: (1) Theatre Days: 2:00 P.M. to 11:00 P.M; and (2) Lobby Days: 8:00 A.M. to 5:00 P.M.These hours of availability are minimum requirements;Bas Bleu is free to permit additional hours of use at its discretion. 6. Provides for an escrow period that requires Bas Bleu to hold back $10,000 of DDA lease payment for of up to 12 months to make any necessary Americans with Disabilities Act improvements to the facility. 7. Outlines minimum obligations of Bas Bleu for: a. Title Commitment and Title Insurance b. Insurance requirements C. Scheduling the space d. Maintaining leased space in good condition e. Ensuring DDA and other users have access to the space during scheduled times f. Providing a minimum level of lobby furniture and trash receptacles g. Providing basic utilities and climate control for users h. Requiring a user to sign a User Agreement,provide a security deposit,and insurance for users of the theatre space when necessary. i. Access to limited theatre equipment and bathrooms j. Charging fees for technical services when users require the use of theatrical lights and sound system, box office services, and other voluntary services that Bas Bleu agrees upon with the user. 8. Establishes a buy-out option for Bas Bleu, effective in 2015, and a formula for determining the remaining value of the DDA's payment. 9. Establishes reporting requirements of Bas Bleu for keeping DDA informed of its master calendar schedule. 10. Establishes posting requirement on Bas Bleu website announcing availability of leased spaces. September 1, 2009 -6- Item No. 11 11. Establishes Right of First Offer/First Refusal 12. Defines when parties are in default of lease agreement. Benefits of Lease: Bas Bleu Theatre is the second largest performance venue in the downtown and activity at the facility contributes to ancillary economic impact in other downtown businesses such as retail shops and restaurants through audience spending. DDA investment in the facility through this lease will make the space available to a broader group of users,and increase the number of days the facility is in operation, thereby increasing the positive economic impact on other downtown businesses. Several user groups have contacted Bas Bleu staff or DDA staff in anticipation of the space becoming available through this lease agreement. The groups expressing interest include a local dance company, magician group, Colorado Contemporary Music College, Beet Street, Sandbox Stories Theatre Performances, KLIK Student Radio, and Tri-Media Film Festival. This is a great start considering there has been no active marketing to advertise availability of the space. C. Lincoln Center Rental and Technical Fees Underwriting The DDA Board has approved a program that will underwrite the rental and technical fees at the Lincoln Center for Fort Collins-based non-profit users of the Performance Hall and the Mini Theatre for the remainder of the 2009 season,and three additional performance seasons: 2010-11, 2011-12, and 2012-13. Lincoln Center will invoice the DDA for rental and tech fees charged to eligible user groups. The amount of$144,063 will cover the 2009 season. The DDA and Lincoln Center staff jointly developed guidelines and criteria for an intergovernmental agreement related to the underwriting of rental and technical fees. Specifically these are: • eligibility criteria • application submittal requirements • user guidelines, • accounting and reporting logistics 2. The Mitchell Block Project The Bohemian Companies, LLC is constructing a 35,754 square foot office building, known as the Mitchell Block. The DDA Board committed funding to enhanced improvements in the public right- of-way, such as paver sidewalks, a new plaza and seating area at the corner of East Mountain and Walnut Street, and an enhanced public "alleyway" that is complementary to the DDA's alley enhancement program and for facade improvements to the EDAW/Food Co-Op building. 3. Elks Building Abatement and Deconstruction In 2008, the DDA Board purchased the Elks Building for its site redevelopment potential in conjunction with the Corporex Hotel project. The Corporex Hotel project is no longer moving ahead as a result of the developer's inability to obtain financing,but the DDA Board did not want to allow the Elks building to sit vacant and as an eyesore to the downtown despite the loss of the hotel development project. September 1, 2009 -7- Item No. 11 After completing an extensive evaluation of the building to determine the cost of placing it back into use for gatherings, such as general community meetings spaces, it was determined there was approximately $1 million in deferred maintenance that would need to be addressed just to put the building back into use for a period of 5 years. The Board decided that deconstruction of building, and utilization of the land for interim surface parking was the most logical use until such time the site is identified for use in another DDA redevelopment project or sold for private development. The abatement and deconstruction funding provide for remediation and authorized disposal of known environmental hazards in the building and for deconstruction of the building, resulting in a very high level of reuse and recycling of building materials. 4. Facade Grant Program Funding In 2006, the DDA Board established the Facade Grant Program, which offers grants of up to 50% of facade improvement expenses to owners of buildings who have not participated in previous tax increment facade improvement projects. The original grant program funds are nearly depleted and have positively affected the private sector investment in 10 buildings for a total of 16 facade enhancements. This funding reestablishes a fund balance and provides for the second generation of this program. 5. Fort Collins Housing Authority Project The DDA Board committed funds to the Fort Collins Housing Authority facade improvements at its qualified affordable housing facility, located at 366 East Mountain Avenue. 6. Relocation of Transcend Sculpture On behalf of the City of Fort Collins, the City Council recently accepted the gift of the sculpture, titled Transcend, from the David and Sharon Neenan's family foundation. The DDA Board has approved funding to pay for the costs associated with relocation of the sculpture from Old Town Square to its new location at 215 North Mason. 7. Holiday Lights Display Contribution for 2009 The Downtown Development Authority partners with the City of Fort Collins and the Downtown Business Association,through a contract with Swingle Tree&Landscape,to install the Downtown holiday light display. This amount will cover the DDA's contribution for the 2009 holiday display season. ATTACHMENTS 1. DDA Resolution 2009-05 Approving and Recommending to the Fort Collins City Council the Appropriation'of$3,501,378 of Interest Earnings, Project Savings and Transfers from Bond Proceeds in the Fort Collins Downtown Development Authority Fund for Expenditure on Projects in Accordance with the Downtown Plan of Development.. September 1, 2009 -8- Item No. 11 2. DDA minutes relating to approval of Projects: - 725 East Vine Drive purchase - July 9, 2009 - Bas Bleu Theatre Lease - July 9, 2009 - Arts/Culture Investment Strategy - April 9, 2009 - Mitchell Block - April 9, 2009 - Elks Building - April 9, 2009 - Facade Grant Program Funding -August 13, 2009 - Housing Authority - April 5, 2007 - Art in Action - Old Town Square Art Project- June 11, 2009 - Holiday Lights - June 11, 2009 I ATTACHMENT RESOLUTION 2009-05 OF THE BOARD OF DIRECTORS OF THE FORT COLLINS DOWNTOWN DEVELOPMENT AUTHORITY RECOMMENDING TO THE FORT COLLINS CITY COUNCIL THE APPROPRIATION OF $3,5011378 (THREE MILLION, FIVE HUNDRED, ONE THOUSAND, THREE HUNDRED SEVENTY EIGHT DOLLARS)INTEREST EARNINGS, PROJECT SAVINGS AND TIIE TRANSFER OF APPROPRIATIONS FROM 13OND PROCEEDS IN THE FORT COLLINS DOWNTOWN DEVELOPMENT AUTHORITY FUND,FOR EXPENDITURE ON PROJECTS IN ACCORDANCE WITH THE DOWNTOWN .PLAN OF DEVELOPMENT WHEREAS, the Fort Collins Downtown Development Authority has been duly organized in accordance with the Colorado,Revised Statutes 31-25-804, 1973 as amended; and, WHEREAS,tax increment bond proceeds from 2008 though August 2009 have accrued interest earnings of$332,044 and project savings of$1,555,249; and WHEREAS, the Fort Collins Downtown Development Authority has not funded certain projects, the board of directors of the Downtown Development Authority wishes to use .the fiords of$1,614,085 for finding of other projects for the fiscal year ending December 21, 2009 and will fund the original projects in its 2010 bond issuance; and WHEREAS, said interest earnings, project savings, and transfers must be appropriated by the Fort Collins City Council for expenditure on downtown projects in accordance with the Downtown Plan of Development adopted by City Council by Resolution 81-129, September 8, 1981, NOW, THEREFORE,BE IT RESOLVED BY THE BOARD OF DIRECTORS OF 1 HE FORT COLLINS DOWNTOWN DEVELOPMENT AUTHORITY to recommend to the Council of the City of Fort Collins the appropriation for expenditure from the tax increment fiord in accordance with the Downtown Plan of Development, interest earnings in the amount of$332,044 (Three Hundred Thirty Two Thousand, and Forty Four Dollars), project savings in the amount of$1,555,249 (One Million, Five Hundred, Fifty Five Thousand, Two Hunched and Forty Nine Dollars) and transfer of funds of$1,614,085 (One i lillion, Six Hundred, Fourteen Thousand, and Eighty Five Dollars). Passed and adopted at a regular meeting of the Board of Directors of the Fort Collins Downtown Development Authority this 13"' day of August, 2009. i l > Patty S+�yr, Chair William Sears, Secretary 1 DDA Minutes ATTACHMENT 2 July 9,2009 pg• 5 725.-A.51 Viue Drive Following discussion during Executive Session the Board re-convened in reaular session and pursuant to that discussion made the following motion. Moved by Mr.Johnson,seconded by Mr. Brelig: To provide approval for the Vice Chair to enter into a contract to purchase 725 F. Vine Drive: the motion passed unanimously. ADJOURN There being no further business the meeting adjourned at 1 1:17 a.m. William Sears, Secretary I DDA Minutes July 9;2009 pg. 3 % Tile Board was asked to approve the proposed budget,�not to exceed S45,000,- to authorize the Board Chair to enter into a Professional Services Agreement witgrtine artist;to approve the Art in Action team's Old Town Square location strategy; and to authorize tiie Executive Director to approve a short term lea- rth Progressive Old Town Squarc for storage space in Trimble Court. 11•i0ved by A7r. Z-amzow,seconded byil4r. Wolfe: To approve the items as requ c; the motion passed unanimously. ff City Financial Quarterly 1Jlidate: Pulled and rescheduled forthe A s Board nmcting. Avery Building Design Review: Board Chair Patty Spence sclo ed that she would abstain from any i vote on this project as two brokers for Realtec, though t n the'Old Town office, are involved in this project. Legal Counsel Jim Martell disclosed that y,Roes,,Martell represents the building owners, rf Jim Palmer ofPahner Properties-presence e design concepts foi-historic rehabilitation of the Avery Building,in anticipation of requeslir mding"A the August Board nleetina. The current owners purchased the building in 2007 and selecte aterpaull�Architects to develop ahistoric rehabilitation plan of the building exterior. The icon ' uildina-Gas three public facades. The design concept is to provide continuity to the storefronts, ins G uergy efficientglass, conduct brick and stone masonry restoration,restore enhances and wit e trim. refnove false stone and install new double doors. The owners hope to begin construction nng the surnmer 2010. Understanding that this will cause some disruption for business owners, will attempt to stagger construction to minimize any negative impact. and mewl re s discussed the poor condition of sidewalks.do}Yntown. Matt Robenalt will coordinate with City staff and have a report on sidewalks for the August Board meeting. 1 Bas Bleu Theatre Lease: This item was brouglit back from the May Board meeting when staff was duectedto"work out the terms of a lease agreement for use of the theater hall and lobby for a term of ten years in the amount of S220,000,with the DIVA to have first right of refusal if the property were to be sold. The resulting agreement addresses the relationship between the DDA and Bas Bleu Theatre Company in this public private partnership. The lease agreement includes the following provisions. The$226,000 lease payment will be guaranteed by a promissory note and secured by a deed of trust;a graduated payment schedule that pays the DDA back tinrough"time and use'of the building,equivalent to approximately$22,000 per year;the amount of space for use by other groups is 2,400 s.f. in the lobby and 4,380 s:f. in the theater for a total of 6,780 s.f. at a rate of$8 per s.f;the theater space shall be available fora minimum of 130 days per master calendar year( August I-July 31),with full use of the stage comprising 21 days of that tine; the lobby will be available for a minimum of 173 clays per master calendar year;hours of availability are established; and an escrow period is provided that requires Bas Bleu to hold back$10,000 of DDA lease payment for up to 12 months to make any necessary ADA improvements to.tlne facility. It also establishes a buy out provision for Bas Blue, effective 2015, and a formula for determining the remaining value of the DDA's payment. Additionally,Bas Bleu will be obligated for title commitment and title insurance;insurance;scheduling; maintaining the premises in good condition;ensuring access to the space during scheduled times;providing a minunum level of lobby finniture and trash receptacles;providing basic utilities and climate control; requiring users to sign a User Agreement,pay a security deposit and insurance;access to limited theater equipment and bathrooms. Board discussion suggested that the notice provision in clause#38 of the lease concerning the buy out provision provide for a longer notice period J a DDA iiMinutes July 9,2009 pg.4 cAloved by 17r. Wolfe,seconded byA1r.Sears: To-approve,the lease with the Bas Bleu Theatre Company as presented with the caveat,that.the notice provision in Clause US be revised to provide for a written notice period of one year: the motion-passed unanimously. `n010 DDA Budget: Staff and Budget Committee members Wynne Odell and David Zamzow presented f clr� 2010 budget for board discussion. The final budget will be presented at the August Board meeting, Mill ke intention of it having a first reading at'Gity Council on October 6`s and second reading oil O ober 2CO 1I-i0hliehted items included a listing of projects requiring funding,discussion of strategic plan i ling, and the p� sibility of addhrg another staff position ill response to growing workload. In resp°n to Board questions, s�(f noted that it is a conservative budget based on a 29%.gromil)rate. It is also c9fiseivative on the TIF cal lations, calculated at 50%rather'tiian�therhigher'amounts possibl through o.reements. Alley Design Gran Staff is requesting Board approvafof a design grant prograc m int rded to incentivize early coordination of c'signs with the alley improvement project It will be availabl to boili property and business owners. The re rested fiurcls ofS40,000 would be part of the alley cons uction budget, which has not yet been approved. It i rather proposed that the Executive Director be gi , it the authority to approve that grants which would be fo ro more than S5,000. There Nvill be slightly tercet application processes for buildvig owners anti busines tenants. Moved by Mr.Sears,seconded by t r..lamzot��: To approve a d ign•graut program for the alleys, the funding of an alley design granfir theamonnfofS40;000, dauthorize the Executive Director to approve grant requests: the motion p sed unanimously. Executive Director Contracts: Legal coulise _ecoinmend changes to some ge provisions of Executive Director contracts for both DDA and B t Stre"Proposed changes affect compensatory time, outside employment,performance evahiations,.and v c ion and'leavepolicies, Moved by Nlr. Ohison,seconded by 17r.-Brelig• To al rove the changes in language to the Executive Director contracts of both DDA and Beet Str et. the mo 'oil passed unanimously. Beet Street Executive Director Contract pproval:The Conti, t for Ryan Kciffer,Executive Director of Beet Sheet, was presented for Board ap oval. It was noted that it c mains the language approved in the previous item and that it provides for review period of six months. Moved by 11h-. Scars,seconded y➢9r. Brelig: To approve the employ cnt.colaract for Ryan Kciffer as Executive Director of Beet h•eet• the motion passed minnimousIll. Other Business: No othe usiness was discussed. (Chairperson Petty.S enter left the meeting at this point and Vice Chirir ili-mte Odell aired the remainder of them eting.) Executive.Se Eon: Ikloved by r.Scars,seconded by i17r. Zamzow : To move to 1PsecutiveSessior to discuss a potential real esta transaction.. This Executive Session for tile purpose stated is authorised pursuant C.RS 24-6-4 2 (4)(1)(1). The motion passed uuarifnrously. IVY. Ohison moved to move from Executive Session back to Regular Session; seconded by Mr.Sears. The motion passed unanimously. I 3 ddAUTDOWNTOWN DEVELOPMENT HORrrY a TO: Board of Directors FROM: Matt Robenalt DATE: July 9, 2009 RE: Bas Blcu Lease Agreement In May, the Board was presented with a proposal to lease space in the BasBleu Theatre building with the intent of making it available for groups such as Beet Street and others to utilize the lobby and theatre for small group meetings;lectures, and performances. Direction was given to staff to work out the terms of a lease agreement for use of the theater hall and lobby for a term of-' ten years in the amount of$220,000, with DDA to have,first right of refusal if the property were to be sold. Staff has worked out the terins of the agreement with Bas Bleu and presents the agreement for approval by the Board. Where We Have Been The following was presented for consideration at the May Board meeting: 1) Shift to lease/lien approach from the earlier suggested public access easement. The lease and lien provides greater security for the DDA investment than a public access easement. The lease tern will be paid in full and secured by a mortgage against the property. 2) Use of a graduated payment schedule that pays the DDA back through"time and use" of the building on an annual basis. Equivalent to approximately $35,500 per year. 3) Reduction in the teem from 12 years to 6.years due to more building square footage available for use by outside groups. Assumption of$8.00 per square foot remains basis of the lease rate, and this isthe lower end of market lease rates for space in the River District. 4) Significantly increased amount of space in the building available for use by other groups from 2,400 s.f. (lobby) to 6,780 s.f. (lobby+ theater hall). 5) Time available for use by other groups,would include: 217 days of use per year in theater hall (35 days.for outside groups to use theater hall for full stage performance when no Bas Bleb performances are staged, and 182 days per yeanfor lectures, music performances, speaker presentations). a 288 days-of use per year in lobby area for small group meetings and receptions. Where We Are Today A lease agreement has been drafted that addresses the.relationship between the DDA and Bas Bleu Theater Company in this,public/private partnership. See Attached"Lease Agreement". Based on the direction provided by the Board at the May '09 meeting, staff has extended the proposed teilm.of the lease from six years to ten years, and structured a buy-out provision that takes effect after six years to allow Bas Bleu to pay the.DDA back for the remaining years of the lease tenn. This buy-out provision is very important for Bas Bleu because it is difficult for them to anticipate what will be happening with the company in 10 years, and the buy-out clause gives them the flexibility to repay the DDA and utilize the theater for more of their own productions if they have reached that need and critical mass of performance activity. The lease kagreement includes provision for the following: .1) The RDA's lease payment of$220,000 will be guaranteed by a promissory note and secured by a deed of trust. 2) Use of a graduated payment schedule that pays the DDA back through "time and use" of the building on an annual basis. Equivalent to approximately $22,000 per year. 3) Assumption of$8.00 per square foot remains basis of lease rate, as this is the lower end of market lease rates for space in the River District. 4) Amount of space in the building available for use by other groups is 2,4.0 . s..f. (lobby) and4,380 s.i: (Theatre) for a total of 6,780 s.f. 5) Time available for use of the lobby and theatre: a: Theatre. The Theatre shall be available for a minimum of 130 days per master calendar year(August l through July 31) i. Full Use ofS'tage: Pull use of the Theatre stage must be possible oil 21 of the 130 Theatre Days. Such 21 days shall be divided into three (3) blocks of seven (7) consecutive days on the master calendar. During these days the Theatre stage shall be completely vacant, such to allow a full theatrical performance thereon. ii Partial Uw of Stage: Partial use of the Theatre stage must be possible for the remaining RCS of the 130 Theatre Days. b. Lobby. The Lobby shall be available for a minimum of 173 days per master calendar year. c. Hours of Availabilitv. Generally, the lease provides for access during the following hours: (1) Theatre Days: 2:00 P.M. to 11:00 P.M; and (2) Lobby Days: 8:00 A.M. to 5:00 P.M. These homy of availability are mininmun requirements; Bas Bleu is free to permit additional hours of use at its discretion. 6) Provides for an escrow period that requires Bas Bleu to hold back $,10,000 of DDA lease payment for of up to 12 months to make any necessary Americans with Disabilities Act improvements to the facility. 7) Outlines minimum obligations of Bas Bleu for: a. Tide Commitment and Title Insurance b. Insurance Requirements c. Scheduling the Space d. Maintaining leased space in good condition e. Ensuring DDA and other users have access to the space during scheduled times f. Providing a minimum level of lobby f imiture and trash receptacles g. Providing basic utilities and climate control for users h. Requiring a user to .sign a User Agreement, provide a security deposit, and insurance for users of the theatre space when necessary. i. Access to limited theatre equipment and bathrooms 1 j. Charging fees for technical services when users require the use of theatrical lights and sound system, box office services, and other voluntary services that Bas Bleu agrees upon with the user. 8) Establishes a buy-out option for Bas Bleu, effective in 2015, and a formula for. determining the remaining value of the DDA's payment. 9) Establishes reporting requirements of Bas Bleu for keeping DDA informed of Master Calendar schedule. 10)Bstablishes posting requirement on Bas Bleu website aimouncing availability of ]eased spaces. 11)Establishes Right of First-Offer/First Refusal 12) Defines when parties are in default of lease agreement. Public Benefit Bas Bleu Theatre is the second largest performance venue in the Downtown, and activity at the facility contributes to ancillary economic impact in other downtown businesses such as retail shops and restaurants through audience spending. DDA investment in the facility through this lease will make the space available to a broader group of users, and increase the number of days the facility is in operation, thereby increasing the positive economic impact on other downtown businesses. Several user groups have contacted Bas Men staff or DDA staff in anticipation of the space becoming available through this lease agreement. The groups expressing interest include a local dance company, magician group, Colorado Contemporary Music College, Beet Street, Sandbox Stories Theatre Performances, KLIK Student Radio, and Tri-Media Film Festival. This is a great start considering there has been no active marketing to advertise availability of the space. Staff Recommendation The reality is this lease arrangement is outside-the-box in terms of how the DDA typically invests its funds. Developing the mechanics of this document to demonstrate a public benefit nexus, to ensure the DDA investment was properly securitized, and create obligations that are fair to Bas Bleu was not an easy feat. It is staffs opinion that the lease accomplishes the aforementioned, and does so in a manner that is agreeable to DDA staff, Bas Bleu staff, and legal counsel representing both parties. This arrangement has the potential to raise the tide for arts and culture as an economic driver in Downtown through a carefully structured public-private partnership. A.conunittuent by the DDA to engage the arts and culture non-profit members of the community and leverage them as an economic driver for the Downtown tlu-ough activities of Beet Street demonstrated that there are challenges related to venue accessibility in this market. This investment will benefit Beet Street's ability to have greater versatility in scheduling performance days, but it will also provide greaten opportunity and expansion of performance and meeting space that is available to many other user groups that contribute to economic activity in the Downtown. Staff recommends Board approval of the Lease Agreement and to authorize the Board Chair to execute the agreement upon approval by the Bas Bleu Board of Directors. / J DDA Minutes April 9, 2009 pg.4 1t ed to be done. Questions were also raised about whether additional DDA staffing would expedite he man rojecison the horizon. Moved by N • Keiffer,seconded by Mr.Zamzow: To authorize the release funds it he amount of $125,000 for pro 1ammatic feasibility for the community marketplace. The mo i n passed unanimously. BEET STREET \ (Afr. Keiffer was absent for this r c1mion) Patty Spencer and Lisa Poppaw of the,11get Street Board present5hf nl e Beet Street report. Ms. Spencer reported that an executive search conunincu ad been fonried nth the idea of hiring a new Executive p b. Director for the program. The salary for that p lion will,Kc$50,000. The Beet Street Board also feels that the change in leadership provides an oppo:16-minue une odevelop organically. Beet Street staffand the Executive Committe�e � k on existing programming—the Imagination Street Fair,Jazz Festival,andorid Rhythms. TI c riding Rome month-long series is underwayand is providing the corium ty weth a broad.range of art �c,cultural,historic and social Programming involving many par n rs in the community. iM,r.�Valfe colt nented that the program reflects what Beet Street should be do'tb by collaborating with many different con�t City organizations. The presenters empha _ec>Z i that the finction of Beet Street is to be an economic drive and in order to accomplish that m' eon, funding is needed.fo'additional time. It was recognized that lifer ailed budget needs to be deye oped before a formal request is made of the DDA Board. A Board discussio pf Beet Street's roje•followed including the possible creation of along tenin endowment for local arts,tic rncmg, and diyefse programming,the expectationis ofa new 8irector,and defining the new direction and visio No formal action was taken. ® ARTS/CULTURE INVESTMENT STRATEGY Executive Director Matt Robenalt and Board Chair Jack Wolfe presented a proposal and the rationale for broadening investment in downtown non-profit arts,culttu•al and scientific organizations. 'these organizations contribute to the diversity of experiences available to Port Collins residents and visitor,and to the cultural and economic vitality essential to preserving a community quality of life and a healthy, vibrant downtown. The impacts of a challenging economy are negatively affecting the ability of these downtown non-profits to remain financially stable. If any of these long—standing"pillar"organizations were to go away, it would take a long time to recover fi-om the negative economic and cultural affects, including a significant loss of sales tax dollars. The DDA is in a position to respond to the impact of the slowing economy and positively bolster the economic viability of some of these key organizations by strategically investing in several key areas. The investment proposal was developed after speaking with staff and board leaders fion the non-profits. DDA staff and Mr. Wolfe spent several weeks in fact-finding interviews to determine the various organizations' shot, mid and long range needs. Mr. Robenalt explained the parameters that the DDA must operate under in order to respond to some of these needs. The DDA must adhere to the State enabling legislation that governs the agency, and it must also adhere to the adopted Plan ofDevelolmrent for the redevelopment area. In light of all these factor, staff requested that the Board discuss the proposed investment matrix and provide feedback about the overall concept. The Board was also asked to act on several short-range investments proposals. - Item#1 -The first proposal is to und'erwrite'Lincoln Center theater space,tech fees,and.rental fees from 2009 through the 2012-2013 season. This would keep Lincoln Center operating revenues whole, while providing financial relief to local non-profit performance groups that utilize the space. This would require an IGA and cost approximately$630,144 through 2012/13. DDA ivlinutes April 9,2009 pg.5 - items 2 & 3 -The second proposal involves.leasing warehouse space for centralized set construction, costume storage,and rehearsal and classroom space: .1'his would also aid the Rocky Mountain Raptor Program which could also be housed in the leased warehouse. This would cost approximately.S140,000- $250,000 annually. Item#4 -Another short term proposal is to acquire a public access easement in the Bas Bleu Theatre lobby and make minor improvements to the easement space. Besides benefitting Bas Blew, this would have the additional benefit of creating a new public nneeting space in the River District for community groups. The approximate cost of this proposal is$220,000. Three other short teen initiatives would directly support Beet Street: continue funding for three additional years;suggest to the Beet Street Board that they create a special partnership between.Beet Street and PCMOCA to help cover costs of special exhibits;and firrther suggest that Beet Street contract fora special Fort Collins Symphony performance. Lengthy discussion followed about hod these agreements would be structured: It was also stressed that the participating arts/culture/scientific entities needed to-understand)that this is a three year initiative with no promise of it extending beyond that point. There was also concern that if the DDA had use of the Bas Bleu building lobby,that the public be informed that it is available'for community use. Legal staff is still working on some of the legal issues and how to Structure agreements. Re gardiing the lease of warehouse space, it was noted that the Elks Building would not be appropriate space because it did not have needed access or loading docks. Any lease for warehouse space would be brought back.to the Board for review. Mr. Robenalt urged the Board to review the mid and long term proposals. An arts council is key to the.nrid range goals of the investment stratcgy and it suggested that it be set up as an incubator program similar to model identified by City Financial Director Mike Freeman. Time did not allow further discussion of long tern plans, il1qi_e l y l•Ir.Breli�,seconded by Mr. Keiffer: To authorize funding for the p o`nosal to underwrite fees at the Lincoln Center through 2012/13 in the following amounts: 2009-10,yS144,063;2010-11, SI54,427; 2011-2012,5165,827; 2012-2013,$165,827. The motion passed unanimously. Moved by Mr.Brelig,seconded by Mr.Keiffer: To authorize the Executive to seek a lease for the purposes in items 2&3 above,with_lhe details of the lease to be brought back for Board approval,and with the intent of the space to satisfy the purposes and needs as stated. The motion passed unanimously. . Moved by Mr.Keiffer,seconded by Mr.Sears: To authorize staff to work with Bas Bleu Theatre and approve up to 5220,000 to secure either an easement, lien and/or contract for the lobby of the Bas Blen building,the structure of this agreement subject to Board approval. The motion passed rmanimously. rLKS_�UILDING R1 USE REPORT DDA Pro3Zct v,'aannager Anne Aspen presented a synthesis of several reports pluss ar-i-i ivesi tigation into processes that svou d b required to reuse the Elks Building. The bottotu I was that the total range to reuse the building was$�00 987,000 for the first year of r pai d operation. Ongoing operations and maintenance costs would be S2. 0Q 253,000 per , plus any deferred.maintenance from the first year. The cost to demolish the building wou roximately$420,000 including hazardous materials abatement and building deconstruction��' rird option othball the buildinng was seen as the least desirable option. The approst a ct�ost for this option for one y Tr, 548,340 plus-S50,000 held in reserve. Ms. Aspen requested�oa� r! nput on whether the wished to pursue br�iir-rouse,possibly for Beet Street activities, m �arcase a more detailed budgetspreadshcet would be prepared foi Board review. The Boar en sfi ensus was that the building should be deconstructed and the.site prepared for'?iiWN1 development,with possible short term use.as parking. Q V i DOWNTOWN �F DEVELOPMEN rdda A:UTII ORITY TO: DDA Board of Directors FROM: Matt Robenalt DATE: April 9,2009 RE Proposal for Broadening Investment in Downtown Non-Profit Arts/Culture and Scientific Organizations Non-profit arts/culture and scientific organizations in the Downtown contribute to the diversity of experiences available to Fort Collins residents and visitors, and to the cultural and economic vitality essential to preserving a community quality of life and a healthy,vibrant downtown. The non-profit organizations that practice in this industry have contributed to building this vitality for many decades, and the economic impact of their activities has included higher restaurant and retail store receipts,increased hotel stays, Lincoln Center revenues, and City sales tax revenues. Why should the DDA consider broader investment at this time? I The impacts of a challenging economy are negatively affecting the ability of these downtown non-profit arts/culture and scientific organizations to remain financially stable. Fewer people are attending activities produced by these organizations as discretionary spending for entertainment is reined-in by regional households,and contributions from local sustaining supporters has been curtailed in the present economic climate. The reality of losing several long-standing non-profit organizations is very real, and if this occurs, it could take several years, perhaps decades, for such a void to be..filled again by comparable organizations. This setback would have direct negative•consequences for the DDA, and its investment in Beet Street,to collaborate with and leverage the existing offerings of these groups as an economic driver for the Downtown. Such a setback would.also have.an effect on many of the downtown businesses that attract arts/culture and scientific visitors for pre-event and post-event shopping, dining,and lodging. Nationally, "the arts and culture industry, unlike many industries, leverages a significant amount of event-related_spending by its audiences. Attendance at arts events generates related commerce for local businesses such as restaurants, parking garages,hotels and retail stores."According to Arts aarl Econondc Prosperity III, 2007, a study conducted by the Americans for the Arts, and fiinded by the DDA,the local economic impact of the arts was nearly $16,000,000 in 2005. Audience spending was estimated at$10.6 million, and arts and culture organization spending was$5.3 million, a 2:1 ratio. "l'he City of Fort Collins Citizen Survey,published in December 2008, indicated that 63% of respondents thought the "availahilitj)and diversity of arts and cultural activities"in Fort Collins was"very good" or"good". This iatiing was considered "above average"in comparison to other communities on a national level, but"similar" in comparison to other Front Range communities. In one sense, these comparative results on the national level speak to the strengths '�T�l � ^ ,.. °'S"i�7 U ii � r s?(� {7 at °' � �,��' � "�" '• .t'g5`3�1: t�t� '' '{i t t , t It 1 I! d^ � '+S *, C,,..5*s t, w � w w mT a 'E'ti"*'a �'- n�s.3 i, x. €•..,� ' ad"� �.. x'-. _.a ,aa_ .cr�'szs� •.dt'�+iK `_. . .� - �.,::* ax.as a" ��rA�.«rs^Faa.�.+."�..,..,...;' of our art/cultural offerings. However,the "similarity+' rating with other Front Range communities reveals that if these activities are not available in Fort Collins, local audiences Would not have to travel far to find comparable activities in another community. The concern this raises for the Downtown is that if destination activities created by the local arts/culture and scientific non-profit organizations diminish in diversity and frequency, so likely does the ancillary expenditures on shopping, dining, lodging and other services. What can the DDA do? 'file DDA is in a position today to respond to the impact of a slowing economy and positively bolster the economic viability of the non-profit arts/culture and scientific organizations by strategically investing in several key areas that can help stabilize (heir financial outlook and planning efforts to.survive the economic slowdown. i A two page matrix (see attached)provides a range of investment proposals for the DDA Board to I consider. The matrix should be considered in its entirety, and as a comprehensive investment strategy, as many of the long range ideas strive to build greater sustainability for these groups. The investment proposal Was developed after speaking with staff and board leaders-froni the non-profit organizations. DDA staff and Board.Chair Jack Wolfe spent several weeks conducting fachfinding interviews with many pillar non-profit arts/culture and scientific organizations-to determine their organization's short, mid and long range needs, The interviews revealed a range of conditions affecting the organizations, and demonstrated how the siowirzg economy,has forced these groups to make rapid decisions about trimming the frequency of performances; cutting expenses to reduce internal overhead; reducing or eliminating stipends for volunteers/interns; postponing facility upgrades that would enhance audience experience; and also liow dwindling audience and donor support creates uncertainty in their ability to plan today for investment in future exhibits and performances. Investment Parameters It is not possible for the DDA to respond to all needs identified by non-profit arts/culture and scientific organizations of the downtown. The DDA is a public agency and invests public " monies for the benefit of Downtown Fort Collins. The DDA must adhere to the State enabling legislation that governs the agency, and must also adliere to the adopted Plan of Development for the redevelopment area. The proposal reflects a rationale for DDA investment that responds to: l. Statutory requirements and limitations of Title 31, Article-25,Part 8 of the Colorado Revised Statutes, as amended, regarding Downtown Development Authorities; 2. The need to demonstrate public benefit in the investment of DDA funds within the DDA boundary; and 3. The desire to induce financial viability of non-picff arts/ealture and scientific organizations that produce and/or-exhibit their offerings in the rlowrrtown, and create the following impacts: lD • Effectively promote Downtown Fort Collins as-an attractive place to live and visit, • Provide a positive economic'impact on ancillary downtown businesses (retail, restaurants, and providers of recreational opportunities, attractions and services); • Bring external dollars into the Fort Collins communit}%; • Generate overnight stays in lodging properties within the Fort Collins city limits; Staff'Recommendation Review and discuss the attached investment matrix, and provide staff with feedback about the overall concept of a broader investment in arts/culture and scientific non-profit organizations. I j Consider deliberation on this topic in the context of: o benefit to the arts/culture and scientific non-protit.Organizations during the current economic challenges, I o benefit to the long-term economic health and cultural vibrancy of Downtown Fort I Collins, and i s desire of the DDA to collaborate and leverage local arts and culture organizations as all i economic driver through the Beet Street concept. Requested Action: Short-range Staff recommends Board approval of the Short-range investments, and requests authorization to proceed in further development of Items#1, #2,#3, #4, and a second motion requesting the Beet Street Board consider further development of the concepts in Items#5, #6,#7. Mid-range & Long-range ! Staff would like to continue discussion with potential partners regarding items in the Mid-range and Long-range tables, and seeks continent and direction on which items the Board prefers to focus Staffs attention on at this time. i j / 3 i i c� I) Investment Proposal for Broadening Commitment to Arts/Culture and Scientific Non-Profit Organizations in the Downtown Proposed Date of Action by DOA Short-range(1 to 6 months) Benefits Mechanism Term Investment Expense Board Keeps Uncoln Center operating revenues whole,which might otherwise decline If routine non-profit performance groups must make choice terms other 2009.10/$144,063 1 Underwrite Lincoln Center theater span tech and rental fees pe: Intergovernmental 2010-12/$154,427 farmance space as of their own declining revenues. Provides long- 2009+3 years 9-Apr-09 Agreement 2011.12/$165,827 ;Landing non-profit performance groups that have large local audience 2012-33/$165,827 constlWences with financial relief during economic down turn. Provides Lincoln Center with additional service offering for primary non-profit Direct lease by DDA,or!GA Until Lincoln 20,000-25,000 s.f. @ 9-Apr-09 (all Lease warehouse space for centralized set/costume storage/rehearsals/ performance groups that cannot be provided duo to space eontralnm in existing yr/C ty of Fort Collins for Center converts full $7.00-$10:00/s.f.= contracts/IGA's brought classrooms facility. Provides economic relief to Lincoln Center non-profit performance lease and management by time to Community $140,000 up to$250,000 to Board for final groups that must rent warehouse space for storage,.and set design.. Lincoln Center Arts Center annually approval) Include the RMRP In space rented by DDA for non-profit performance groups;if . appropriate outdoor space is available at the leased site to accommodate outdoor 3 Rack Mountaln Raptor Program In leased warehouse birdenclosures The RMRP is the Downtown's premier non-profit comprehensive y p 8 environmental education program that teaches the Importance of preserving some as above same as above same as above 9-Apr-09 wildlife and wild places and accomplishes this through scheduled tours and several open houses held each year that draw hundreds of visitors each time. Acquire public access easement In Bas Bleu Theaterbuilding lobby,and Create,new indoor public meeting space In River D61rict For community groups. 12 year casement, make minor improvements to easement space Available for free utilization similar to Opera Gallerla Atrium.Scheduled and Agreement to specify One time-2009 $220,000 Ieasc 9-Apr-09 ntanaxed by Bas Oleo thru aPreement. management terms. 5 Beet Street Funding/incubation Renewaf Continuation of Beet Street vislon that develops collaborative programming with Amend DDA/Beet Street 3years TBD In proposal from Beet 11-Jun•09 local arm/culture groups and Clay as ctonomic driver for downtown MOU Street Board Suggest to Beet Street Board of Olrectors the leverageof ro programming Beet Street programming contract to cover first.1/2 of exhibit rental Installment, 88P g g Beet Stree[programminE suggestion to Beet Street 6 resources fors special partnership with FC•MOCA. which allows FC-MOCAto Beare schedule for two special exhibits In 2010E Onetime-27J9 $2»,000 P P P contract Board 2011. 9cet Street can build complementary programming around exhibits —Beet Streot programming contract for one FC Symphony performance,w/very Suggest to Beet Street Board of Directors the leverage at programming Beet Street programming suggestion to Beet Street 7 reannrrn<for snorIM FC-Svmohonv nerformance low cost ticket pricing,Arid partnership with DBA to market Symphony contract One time-2009 $.S,000 Board i Investment Proposal For Broadening Commitriient.to Downtown Arts/Culture Offerings Mid-range(6 to 12 months) -Benefits Mechanism Term Investment Expense Invest In accoustical upgrades In Ilncoln center 2mo 1 remodel(e.g.band shell,sound absorption materizls In main Better audience experience. Intergovernmental Agreement Onetime TBO by LC project cost estimates hall) Create culture-based economic development partnership to reconcile differences 2 Arts Council- between the needs and resources of local arts/cultcre organizations,broker partnership with City information,provide finance and business developmeni expertise,develop markets and Intergovernmental Agreement Annual commitment TBD connect markets to regional promotional efforts. Long-range.(1 to 3 years) Benefits Mechanism Term Investment Expense B Establish Challenge Grant to create a sustaiwb!e Provides consistent long term source of funding for non.prolit arts/culture intergovernmental Agreement/or specal endowment to suppor,downtown arts/culture organizations.Establishes s:dbilllty,In future economic downturn,, agreement One-time TBD FC.MOCA has plan;to Improve climate control systems in the building to bring more diversc and higher profile exhibits to musucm. Introducing extassive amounts of A FC-MOCA Historic Building Envelope/Exhibit Climate humidity to sad;fy interior climate criteria of exhibit owners will cause damage to ngreemcnt/Grant of Facade One-time TBD bated on future cost estimates Control improvements historic bulldins„I.ncluding the facade without mmgatlon.Solution is to build an Interior climate controlled bufitling-wiadn-thy building:o prevent damage to the historic elements of structure. Ca-develop new,cultural venues with local/arts organizations and Clty to expand IntergovernmentalA 5 New cultural venues(c.e,amphitheater,black box theater) performance options and frecuency of activities in the downtown,and establish greement/or special One-time TBD - permanent home for Beet gtrrnt. agreement 3 Yearn+ Benefits Mechanism Term Investment Expense The size of.the Poudre giver Arts Cema,,as prevlouslystated by Its owner,L-a future Aareement/Crant of facade casement with G Arts incubator redevelopment ingll site. Iris undetermined at this time when redevelopment would new building owner,or DDCs develops arts TBD Tgp occur,but ODA should be poised to respond to demand for new arts Incubator space Incubator space in conJuctlon vA[h City or. when site is redeveloped. other partners. DDA Minutes April 9;2009 Pg•� kct\t I: The agreement with Corporex has been officially terminated and Corporex accepted the offer of S75,OQ0 forrcimbursement for work product. Mr.Robenalt will be arranging meetings with seven potenha totel developers who have expressed an interest in working with the DDA. REGULAR P,DATES Mike Freeman di`st�'ibutcd the Community Scorecard. Mr. Attebeny recommended v�wii' ig Mr.I=reeman's more detailed presni ation to the City Council work session.Mr. Freeman also distyabuted the sales tax report for nMarch. He noted that Fort Collins is now showing the negative impa t of the larger economy, with a decline of 9.2%in the.DDA boundary. Even with the negative figure Collins continues to fare better than others in the region,at dd ationally. OLD TOWN SQUAI2i NEEDS R . ORT g d tSquare needs /lesuit the Old Town Bruce Hendee arc{Jason Massaros of BI-T7�Desi presence assessment,which was requested by the Boa d at the Octobf 2008 retreat' They met with key stakeholders to identify needs and ideas for renovating the S�c uare. I se stakeholders They the DDA,DBA board and staff, Old Town merchants, Old Tom Squarer 5erties,Parks,Convention &Visitors Bureau; District One police personnel, Polaris School and, ld ' wn youth. The basic themes of these discussions stated that the Square N,the heart of Port Collins. Participants wanted to see art and sculpture;guroup�se better wayfinding;better lighting; and water features. They wanted to keep and expand the platy rea and retain the historic charm Mr.Elendee noted that the Square is 25 years old and beginning to sF�2 signs of wear. The stage and kiosktlivide the area and limit opportunities so moving the/st ge is considered a primary option. If the kiosk was moved, rest'ooms would need to be relocated as w li as the bike library and ice rink. in conclusion,Mr. eendelee requested further input from the Board. Mr. Robena�lcqucstcd Board Permission ford�e ff to develop au RFP for the redevelopment of the Square and perm issiot�to talk to Old Town Squa- 'Properties about obtaining the kiosk and relocating public restrooms to'frimble Court. Recogni tithe need to be sensitive to upcoming alley renovations and disruptive effects to clove ntonvn tuercJ�tfnts, if approved,construction could begin approximately January 2011. Board and public s9n ments were solicited and generally expressed excitement about the project and encouraging staff t pursue the project. ® ,MITCHELL BLOCK The Bohemian Companies is constructing a 35,754 square foot office building,known as the Mitchell block, on the corner of Walnut and Mountain. The Board conducted a preliminary design review at the March 2009 meeting. The proposed enhancements expound the urban design goal of the DDA to create unique pedestrian connections in enhanced alleyways,quality steetscapes,and to provide public plazas for downtown visitors to linger and enjoy a high quality urban experience. The enhanced design for the public right-of-way is complementary to Old Tmvii Square. Additionally, the owner is collaborating with CSU and the City on it pilot demonstration project that will improve storm water runoff quality by utilizing unique paver systems in the adjacent on-street parking,rain gardens, and tree filter box technology. There is$2,038,808 in eligible tax increment for this project and the requested eligible features are S427,502. Board members discussed the grant of easement by the City and also security concerns for the alley between the new structure and the Food Co-op/1DAW building. Moved by Mr.Ohlson,seconded by Ms..Zibell: To approve funding for: a)up to S195,551 for- sidewalk improvements in the public right-of-way; b) up to$149,134 for improvements to create a new public alleyway,contingent upon City acceptance of a permanent public access easement; c)up to S82,817 for improvements to the northeast facade of the Fort Collins Food Co-op/EDAW building and contingent upon City acceptance of perntaient public access easement in the new public alleyway and execution of an agreement/grant of facade easement by the building owners.The motion passed unanimously. 14 i j i TO: Board of Directors FROM: Matt Robenalt i DATE: April 9, 2009 I RE: Mitchell Block Tax Increment Proposal i 'fhe Bohemian Companies is constructing a 35,754 square foot office building, known as the Mitchell Block, on the corner of E. Mountain Avenue and Walnut Street. i The owner is requesting$427,502 in tax increment financing for public R.O.W. improvements, creation of a new public alleyway, and improvements to the adjacent Fort Collins Food Co- opfEDAW building northeast facing fmade. DDA investment in the alleyway and building fapde can't occur unless: o the City accepts dedication of a permanent public access easement for the alleyway; and o the Food Co-op & EDAW grant a fapade easement to the DDA, j I For improvements in the public R.O.W. and proposed new public alleyway,.the owner is requesting only the difference between costs they were planning to spend on base Ievel.constructian and the cost of enhanced improvements shown in the master plan (see attached). Staff evaluated the request in the attached Commitment Worksheet,and determined there is $2,038,808 in supportable tax increment available for this project. The requested eligible ` expenses are $427,502 and confirnied by estimates provided by the owner's contractor. The total project value, excluding all soft costs,is $7,000,900, and the owners funding request is 6.11 %of the total value. i The Board conducted a preliminary design review of the master plan in March 2009, and was supportive of the creative, and inspired design. The Board felt the.master plan was exciting and very compatible with the DDA's preference for investment in quality, timetess materials. The proposed enhancements expound the urban design goal of the DDA to create unique pedestrian connections in enhanced alleyways,quality streetscapc finishes.that include the use of locally sourced materials, and to provide unique public plaza spaces for downtown visitors to linger and enjoy a high quality urban experience. 1 i 3 } • i I . f { i I '.['he enhanced design for the public right-of-way is complimentary to OI<I Town Sgnare,and creates signature design features that would not otherwise be realized unless the DDA were to I become involved in funding. Additionally, the owner is collaborating with CSU and the City on a pilot demonstration project that.will improve storm water run-off quality by utilizing unique paver systems in the adjacent on-street parking spaces, rain gardens, and tree filter box technology. I Staff Recommendation: Staff recommends Board approval of a commitment to fiend the following: a. Up to$195,551for sidewalk improvements in the public right-of-way (per attached workshect) b. Up to$149,134 for improvements to create a new public alleyway (per attached workshcet), and contingent upon City acceptance of a-permanent public access I easement; c. Up to$82,817 for improvements to the northeast facade of the Fort Collins Food Co- Op/EDAW building (per attached workshect), and contingent upon City acceptance of a permanent public access easement in tile new public alleyway and execution of an agreement/grant of facade easement by the building owners; and authorization for the Board Chair to execute appropriate agreements with the Mitchell Block owner and Fort Collins Food Co-op/EDAW building owners. 1� M V c,r , MiTCHELL BLOCK CONCEPTUAL MASTER PLAN �3 a. ff R�ee6g' ^.a '•: 'n"n l �ai��4��Ne ry �s sF tiiITCNELL BLOCK; p 9 OFFICE-'BUILDING ;l ' ' t � � v � to � :a 1� afa Vou wh 'N`& H ��g 71, ru ,. — 13 10 w i���P�� w � , <IMP 1�4 DDA Minutes April 9,2009 pg.5 Items 2 &3 -The second proposal involves leasing warehouse space for centralized set construction, costume storage,and rehearsal and classroom space. This would also aid the Rocky Mountain Rp�tor Progra�m which could also be housed in the leased warehouse. This+would cost approximately 1dQ,000- $250,000 annually. Item 44.-Anathet short teen proposal is to acquire a public access easement in the Bas/131eu Theatre lobby and make minx improvements to the easement spice. Besides benefitting Bas Bleu this would have the additional benefit creating a new public meeting space in the River District for obnmiunity groups. The approximate cost of t is proposal is$220,000. f Three other short term it af,ives would directly support Bect Street: contiPu"e finding for tiuee additional years;suggest to the Beet Str4t Board that they create a special partneOrp between Beet Street and FCMOCA to help cover costs o pecial exhibits; and further suggest #fat Beet Street contract for a special Fort Collins Syinphony performau Lengthy discussion followed about how hese agreements+vot}jZbe ructtucd. It was also stressed that the participating arts!culture/scientific entities ceded to raiders d',d that this is a three year initiative with no promise of it extending beyond that point. 'there was als concern that if the DDA had use of the Bas Bleu building lobby,that the public be informed that)- is a+�i able for community use. Legal staff is still working on some of the legal issues and.how to st'lrchrre agreements. Regarding the lease of warehouse space,.it was noted that tine Elks Building would�De appropriate space because it did not have needed access or loading docks. Any lease for warehouse spacNten e brought back to the Board for review: Mr.Robenalt urged the Board-to review the raid and looposals. An arts council is key to the mid range goals of the investment strategy a t(1 itissuggesteset up as an incubator program similar to model identifiedby City FinanZlr. ' for Mike Freeman. 'l'imed•d not allow further discussion of long term plans. b7oved by Mr.Brelig,secoll Keiffcr: To authorize funding fQr the proposal to underwrite fees at the Lincoln Center lutrough 2012/13 in the following amounts: 20tT4-10,51441063; 2010-11, 5154,427; 2011-2012,$ 5,827; 2012-2013,$165,827. The motion passed tin rimously. Moved by Mr.Bre ' ,seconded by Mr. Keiffcr: To authorize the Executive Dire or to seek a lease for the purposes items 2&3 above,with the details of the lease to be brought ba c for Board approval,and//;Gith the intent of the space to satisfy the purposes and needs as stated. he motion passed unm ifnously. Moved y Mr. Keiffcr,seconded by Mr.Sears: To authorize staff to work with Bas Bleu Thc.�tre and prove up to S220,000 to secure either an easement,lien and/or contract for the lobby of th� B and building, the structure of this agreement subject to Board approval. I'hc motimrpassed ui,animously. ELKS BUILDING RE-USE REPORT DDA Project Manager Anne Aspen presented a synthesis of several reports plus an investigation into processes that would be required to reuse the Elks Building. The bottom line was that the total range to reuse the building was$310,000-$987,000 for the first year of repair and operation. Ongoing operations and maintenance costs would be$217,000-253,000 per year,plus any deferred maintenance from the first year. The cost to demolish the building would be approximately S420,000 including hazardous materials abatement and building deconstruction. A thud option to mothball the building was seen as the least desirable option. The approximate cost for this option for one year is$48,340 plus$50,000 held in reserve. Ms.Aspen requested Board input on whether the wished to pursue building reuse,possibly for Beet;Street activities, in which case more detailed budget spreadsheet would be prepared for Board review. The Board consensus was that the buildinl should be deconstructed and the site prepared for future development with possible short term use as parkin°. i ddaDOWNTOWN AUTI ORIT�,INT TO: DDA Board of Directors FROM: Amre Aspen DATE: April 2,2009 Ellis Building Reuse Feasibility Study This staff summary is a synthesis of several compiled reports plus an investigation into processes that would be required to reuse the facility. Attached reports include: o Architecture Plus building maintenance evaluation repot, o ACC Roofing estimate, ® a building code audit done by David Yee at City Facilities, © cleaning cost estimate from Joan Barrie at City Facilities and © a furniture estimate done by Mity-Lite. Background assumptions are that the building will be re-used for a period of 1-5 years and that the building user will be Beet Street for their progranuued events. Private, revenue-generating events such as wedding receptions or parties will not occur in the Elks building to avoid.real or perceived competition with other event venues in downtown such as the Northside Aztlan Community Center. 'file intent of this summary is to give the board a rough ballpark idea of the cost to change the use of the Elks Building and to operate it annually. This information is intended to prompt initial feedback from the Board or what direction we want to take with the Elks building. If the Board wishes to pursue building reuse, staff will create a more detailed budget spreadsheet for Board review. Also included are estimates for demolition and mothballing of the building. REVIEW PROCESSES: City Development Review: I The change of use from "Clubs and Lodges" to the combination of uses we might want (possibly including a combination of'office', 'food catering or small food product preparation', 'nightclub', 'entertairunent facility', 'place or worship or assembly') will trigger some development review,namely a minor amendment to the originally approved i Elks building plan of 1975. All of the proposed uses are allowed in the D zone subject to a minor amendment review. The uses above are taken from the City's Land Use Code and indicate how the City is likely to classify the proposed reuse;uses such as 'night club' do not indicate that the Elks building will become a night chub, only that alcohol may be served as a part of the Beet Street events. I r =" - ,�;� xynb � :e-, L -u J �..� �� �1t�ttSfir t[r }�t }�Wb i� fi? ( ltTt,t{SIJ I t1�) 3r t �l(5!`r3(7 f � dI iP,i 'tb It fVtj 1A'Itt )( / t ,IvQit h i The minor amendment process does not require a public hearing but will trigger site improvements to current Land Use Code standards, to the extent reasonably feasible. These will most likely include: o additional bike racks e streetscape iuiprovemetits along Remington where the.exisling parking is located (a 15-foot landscape setback with street trees plus a 50-footparking setback required by engineering per a traffic study). City Building Plan Review: Reuse of the building could also trigger upgrades to meet current building code, however according to both the City's Building Services staff and Poudre lire Authority staff, the occupancy of the building will remain the same as it was for the Elks. Compliance with building code standards including the Americans with Disabilities Act (ADA) is therefore not required. Although it is not required, peoplewith disabilities need fimctional accommodations in the space. See additional information in, Building Systems below. Compliance with current fire standards is also not required. Although meeting current standards is not required, functioning fire safety and suppression equipment is essential for a safe building. See additional information in.Building Systems below. Review P►•ocess Summary: ry Procedural requirements are mostly routine and mostly inexpensive. One possible exception is the parking setback requirement. The parking spaces in the north parking lot that would be affected are in easements for the adjoining businesses. Any loss of spaces would likely need to be bought out by the DDA. It is possible to request a variance if we show an alternate design which addresses the needs for the access point. BUILDING SYSTEMS: Roof: The roof is in poor repair. An estimate front ACC Roofing, Inc. offers two options: repair for$23,123 or reroof for$75,662.00. Jim Cox'frorn Architecture Plus, who performed the building analysis report suggests that applying a liquid spray coating to the modified bituminous roof would probably extend the life of the roof for up to 5 years. This method Would reduce the cost to $3840. RVAC systems: There are seven rooftop air handling units which were installed at the same time. Two have been recently replaced. It is anticipated that more will fail and need replacing in the next 5 years. Each unit costs about$13,000. Allowance must be made in case all 5 fail. $39,000-65,000 ao i t Fire Protection and Suppression: According to Poudre fire Authority staff,functional existing fire signage, detectors,pull stations and panels are in place and will suffice for short-terni.building reuse. $0 Bathrooms: All bathrooms will need moderate to extensive remodeling to be accessible to people with disabilities. $13,000-18,000 per floor. S47,91.3. In order to reduce utility costs,it may be desirable to retrofit the resirooms with low flow and automatic fixtures. S44,693 0 17he water service entry does not have a backfloiv preventer on it. This needs to be added immediately. S1.716 Elevator: Fortunately, although the elevator is not in compliance With current codes, it does function sufficiently to accommodate people in wheelchairs. Replacing the elevator with one that meets current standards would cost upwards of$278,000. Environmental Abatement: A Phase I Environmental Study was done in 2008 which identified abatement that would be necessary at the time of demolition, including safe removal of mercury-impregnated flooring and sprayed-on asbestos acoustical ceiling. The rubber floors with mercury content are in an area that would not be used. Repairs to the asbestos-based, sprayed-on acoustic ceiling surface will likely be smaller areas that will require special care and processes. No estimates on the cost of this special treatment will be available until we know the size of needed repairs. Interior Finishes: While not an inuncdiately required repair, numerous finishes in the building arc in dire need of repair and/or replacement. Ceiling finishes would cost $155386 to repair or replace. Wall and column finishes would cost $71,792 to repair or replace. Floor finishes would cost $35,459 to repair or replace. The cost could be deferred 2-3 years. $262,637 Lighting: Existing light fixtures arc not energy efficient. Though not required, upgrading the lighting would reduce utility bills and be more sustainable and more aesthetically pleasing. $284,821 Building Systems Sunintary: The mininnun cost to bring systems into working order and meet requirements for change of use is: $92,469 with an average operating expense of$36,000 per year for utilities. To improve the systems to a more efficient level and address maintenance issues that are ai likely to arise:in 5 years, the cost is: $733,903 with reduced operating expenses for utilities. STAFFING: Scheduling: 1-2 part-time employees at about $15 per hour with no benefits,itnot handled by existing Beet Street staff: $15,600 to $31,200 per year 2-4 part-tinic event set-up staff inembers at about $8-10 per hour with no benefits: S20,800-41,600 per year Security and Maintenance 2 full-time employees at about;$15 per hour plus benefits: $81,120 per year approximately$1500per year for alarni service Cleaning: City Facilities is willing to contract out the Elks building cleaning,responsibililies on the DDA's behalf. A one time restoration cleaning fee of$1010 would be needed to address deferred maintenance. After that, there would be an annual fee of$2563 for periodic cleaning of windows and deep cleaning of carpets plus a per time fee for bathroom and floor cleaning that would average about$75. Assuming once per week cleaning: S3900. The Elks currently pay approximately$1500 per yearfor trash service. Staffing and Maintenance.Srlmnraiy: A rough estimate for the cost of staffing and maintenance is $127,000-163,000 per year. EQUIPWNT: - ) quiprnent Summary: The minimum cost to provide needed furnishings to operate the building for Beet Street events is approximately$40,000.. This includes round and rectangular tables,400 chairs, and carts for moving each around the building. There may be an opportunity to re-use furniture in a future project such as the conference center, so a higher quality of chair may be warranted. This estimate does not include any audio-visual equipment that may be needed. MISCELLANEOUS.EXPENSES: Building Insurance: approximately$5000 per year Utilities: telephone,electric, gas, water and sewer total about$40,000.peryear. Snow removal, pest management, signs, elevator repair and maintenance, miscellaneous repairs: $5000 as OVERALL COST SUMMARIES: Building Systems: $92,469-.$7335903 Staffing and maintenance: $127,000-1.63,000 per year. Equipment S40,000. Miscellaneous: $50,000 THE BOTTOM LINE: Total Range to reuse the building: $310,000 to $987,000 for the first year of repair and operation. Ongoing operations and maintenance costs will be approximately$217,000- 253,000 per year plus any deferred maintenance from (lie first year. Cost to demolish the building: 5420>400 which includes hazardous materials abatement and building deconstruction. Abatement activities need to be scheduled for during the school year. Cost to mothball the building until.demolition: Costs to mothball would vary widely depending on the length of time it would be left unused. For the purposes ofdiscussion, it is assumed that the building Would be preserved unuscd for one year. Spray roof to prevent further deterioration of roof: $3840 Estimated utilities for unused space: $30,000/year Periodic security walk-by $3000/year Security alarm system: $1500/year Building insurance:$5000 Snow removal, pest management,miscellaneous repairs: $5000 A maintenance reserve would need to be established in case ,iny critical equipment needs replacing, such as an H VAC unit or water heater. Total: S48,340 plus $50,000 in reset-ve i No future use for the site has yet been identified. The mothball period would allow a full site analysis to be completed. l We will bring this item back on the May agenda with any additional information requested and recommendation based on initial Board feedback, i i I i t i i i i r ddaDOWNTOWN DEVELOPMENT AUTHORITY TO: Board of Directors FROM: Matt Robenalt DATE: August 13. 2009 RE: Facade Grant Program—Funding In June 2006, the Board approved establishment of the Facade Grant Program ("Program'). The propose of the Program was to focus a grant offer equal to 50% of the facade improvement cost(up to a maximum of$50,000)on owners of buildings who had,not participated in previous facade improvements using the established tax increment investment model. The Program does allow for an owner to receive more than one grant on the same building if it has more than one eligible facade. The Program funds are limited specificallytoexterior improvements on eligible facades, which mean they face the public right-of-way, and an improvement design that exhibits the characteristics of high quality, timeless Materials (no fake stucco or stone), sensitivity to the surrounding built environment, and follow historic rehabilitation standards when applicable. The Program was not meant to be an entitlement, but rather an enticement for the owner to pursue a high quality,high impact facade improvement that benefits the overall Downtown streetscape and built environment, and for the DDA to share in 50%of that cost. A sample application is attached that provides a complete synopsis of Program eligibility and evaluation criteria. The Board initially funded the Program witli$500,000, and in November,2006 made its first award. To date,the Board has committed Program fiords to ten (10)buildings for a total of thirteen (13)facade improvements. There is currently balance of$144,785 remaining in the Program, and one pending application for a building that has 3 eligible facades, which would nearly deplete the fund balance if the Board approves the project. Project Committed-Not Running Description of Activity Date Deposits Expenditures Complete Spent Balance 2007 Bonds 2/21/2007 $500,000.00 $500,000.00 215-217 Jefferson Street 11/2/2006 $35,690.00 0 S464,310.00 210 S College-Elliot's Mess 11/2/2006 -$28,357.67 21 $435,952.33 137 S.College-Julian's Restoration 12/7/2006 -$12;490.00 O S423,462.33 123 N.College Opera Galleria Fa ade 211/2007 -$32,101.50 [7 S391,360.83 110 E.Oak-Robertson Building 4/3/2007 -$100,000.00 0 S291,360.83 417 W Mountain(Kneeland) 4/10/2008 -$11,036.00 0 $280,324.83 210 East Oak 6/5/2008 -$36,998.00 O $243,326.83 117-119 W Oak Street(indigo Gallery) 1/8/2009 -$12,922.00 Rl S230,404.83 151 S.College-Silvertree Plaza 5/14/2009 $50,000.00 $180,404.83 152 S.College-Cupboard 6/11/2009 -S35,619.00 S144,785.83 $144.785.83 a � The impact of improvements on the Downtown streetscape and overall appearance of the built- environment as a result of the Program has been successful. Manny of the buildings improved with funds from the Program Nvere among the buildings that sat idle with deteriorated, outdated or facades that were incompatible with the surrounding downtown architectre. A series of photos depicting the£made improvements completed through the Program are attached. Staff is in discussion today with several owners interested in utilizing(lie Program. These potential projects include historic rehabilitation prospects, and one owner ithat«>ould like,make fapade improvements in conjunction with enemy sustainability upgrades throughout their bi ilding. .Additionally, DDA staff believes the next round of alley enhancements, to be completed in 2010,will motivate several owners to improve their alley-facing facades. The.Program provides all incentive.mechanism,that is ideal For the scale and scope for improving alley-facing facades, which will ultimately assist the DDA and City realize the overall vision of the signature alley revitalization project. Staff presented a proposed 2010 budget in July that call support Program funding in-the amount of $500,000. However, after additional evaluation of interested prospects,a lesser amount would be sufficient to satisfy expected demand for at least the next 2 years. Staff recommends the Board approve.S350,000 to food the second generation of the Fagade Grant Program. P(IS'S Aux, 13 C,(-jq a� DDA Aliuutes April 5,2007 Page 2 ROBERTSON BUILDING Nor.%lewill and Mr. Brclig recused themselves forthis discussion. fhe Ison Building(158 South College, 162 South College and 110 East Oak Street)is owned in a'partnership that includes B and member Carey 1lewilt,Mark Korb and Robert Biseiti. The design work for the remodeling project is.beip,done by Board mcir�er Gcorgc Brclig's finn, RB-113 Architects. The building has 190 linear feet of street frontage plus an99ther50 feet of alley frog age. Because of Ifie fength of frontage,the DDA is being asked to double its normal maxim mi IVe grant to S100,000. Mr. Stelper believes the DDA should support the request for b100,000 and suggested that the Board approve an additional S25,000++�t the following stipulations:change the upper flour facades of the two most casternmos/storefronts on Oak Street from panefing to brick or some other upgraded material; improve the alley facade,possibly upgrading the windows and wrapping the brick ve e�er around to the back. Derek Young of RB+13 Archit8 is presented drawings of the proposed remodel;stating that the hoped•ai s the improved design world draw people down Oak S'% el.Robert Bisetti represented the owners and stated that the rct�Cation of the buildine,will improve the look of an impotartt cD((ner downtown and also improve the commercial appeal of}he building. Fie expressed concern abort the cost of alley improt'I mcnis,stating the owners would prefer to use the fun s for improving the strectside facade. They would then address the al facade when there was:a comprehensive plan toy enovate the entire alley. Board discussion centered of the fat;adc mat [[ial improvements Nvith the owners agrccing to revisit the design and explore the use of other materials. Discussion of the alley3 Fade presence various ideas rangi is from wrapping brick veneer,adding win(lows and improving the rear entry,to simply avirtg a,nulraipainted. Moved by Mr.Wolfe,seconded by Mr.Sears: To a rove a faFade gra/inheamount of$125,000 on the following conditions: /� 1. Change the fa;adeon the two easternmost star ronts-to'dclude upgraded material; 2. Improve the alley way in some manner; 3. Give staff along with Mr.Wolfe and Mr.Sears file, horny to review and approve revised design plans; 4. Reimbursement is subject to the execution of a fn de greemtent. The motion passed unanimously. BICYCLE LIBRARY The City and Friends ofthe Port Collins Bicycle Prof am are seeking a gran front the Metropolitan Planning Organization (C1t1AQ)to start a bicycle library and they have relit excel a local match ofSl 000 from the DDA. The program is intended to provide loaner bicycles to residents,commuters/E ntployces;studenis,and visioo_ It will be administered by Friends of the Port Collins Bicycle Program, Inc. The City,o Fort Collins twill handle the prograi budget and funding appropriations. Library stations will he located throughout fie community including local btisi»esses, totels,GSU,City transit centers; parking facilities,traditional libraries,the Color, o Welcome Center and the Ch13. Mr. Steiner recommended the Board support this grant request and suggests that the inform i n kiosk in Old To+vn Square be dedicated as a bike library sta02 DDA funding either should be limited capital purchases wil 'iay2lowntown OF given to the City's bicycle progntrtt and Ica the City use it for the program, Rick price all(]David(/- Kemp spoke to the proposal,describing their vision ofa bicycle lending h-Lary of approximately 200-300 bikes. "they 1ied similar projects in other communities and feel that the library would ctT��hanec Pori Collins status as a bicycle fr ndly community acid that it would.provide an alternative way to get around'iovn quidiJy and efficiently,to enhance air qualit and ease congestion. In response to questions,they explained that were looking at chargie\boundar ce fee to take care f upkeep. ,They also hope to have.bike tour maps of downtown,the natural areas and bre+verio users. Boar ncnbers were very favorable about the project,stating that this is exactly what the City had in mives to enhanc icycle use. nlov d by t1is.Spencer,seconded by Mr.Sears: Support a matching grant of S15,000 for the proposed ft coy6igent upon the bicycle library receiving the CMAQ grant and that the funds are spent within file D Trite motion passed unanimously. HOUSING AUTHORITY—366 East Mountain Avenue The Fort Collins Housing Authority is requesting S48;813 for.facade.improvements to the building it owns at 366 East Mountain Avenue,which provides five affordable five housing units dedicated to households earning 30 percent of Area A•ledian Income.Total cost of the project is about$171,000 and Housing Authority proposes to pay for the project with finds from the DDA,CDBG,and the Governor's Office of Energy Managenjent. Staff believes the DDA should support this request.Because the.Housing Authority is a'publie agency, DDA finds can be used for any buiilding improvements and is not limited to the facade right of way improvements. Mr.Steiner stated that low income DDA Minutes April 5,2007 Page 3 housing is an important component ofthe downtown residential environment and that the Board.should'support the request with two suggcstiorm.the front stairway should be re-designed and that the aniount of the,grant should be increased by S5,000 to defray the costs of the redesigned stairway. He further suggested that the funding should come front the miscellaneous category of the latest Bond issue to.firtance the DDA's portion of the project. . Julie Brewer front the I lousing Authority was present to explain the grant request and answer questions. She explained, in response to a question about maintenance that because,of the budget and low rents received front the property that maintenance is<IilTittrlt to fund, but that they had included reserves in then-grant requests for maintenance. Ms.Brew�en described the stairs as rusted through and in need of replacing. Mr. Hewitt stated that he would like to see a rendering of wlnat the stairs would look like before granting money for their repair. Nit.Taylor expressed the opinion that this is a wonderful and rare opportunity for the Board to do something for affordable housing. Moved by llh•.Wolfe,seconded by t•'Ir.Sears:To grant S53,813 to the Port Collins Housing Authority for purples of making fagade improvements to 306 East.iWountain Avenue,which includes S5,000.to design stair improvements. The ]lousing Authority will provide the Board with information on the improved staircase design.The motion passed unanimously. PORTABLE SIGNAGE—RESOLUTION 2007-03 'Fit c owvntogn Business Association has requested a resolution in supporkofthc use,legalization and regulation of portal le signage S)N"N" r. owntown sidewalk rights-of-way. (Beard discussion was favorable of the resolution. A4oved Hewitt,seconded by Mr.Wolfe:To pass Resolution 2007-03 in support of the Downtown Bush Association's request for support for the use of portable-signs in the Downtown Tort Collins, The resolution passed unanimously. LEGAL PEES The discussion of\1egilfeess tabled for a later date. 2007 ACTION PLAN In response to the funding uncertainty of the DDA after 201 1,Mr.Stciner,tiresented Priorities and strategies for the remainder of 2007. lie feels that pursuing the ester lion of the DIVA through legislation should be"i'he top priority. If that option proves impossible,then the possibility of mating'�3y Urban Renewal Authority will be pursued. Mr.Steiner proposed other priorities should.include a comprehensive plan and�les gn study for our alleys;analysis of the feasibility ofa business improvement district an o her possible downtown funding mechanisms;pursue design fora permanently installed ice rink;and,organize another ip to Chatit auqua.,�tfice$1.3 million has been approved and appropriated for a downtown amphithcater/BeetStreel Qnnc,that prof 1 remains it priority and the DDA should pursue the preject.and gel all the preliminary work done so.that%then kinds be me available construction can begin immediately. lvir.Steiner also suggested that the DDA limit finding for allh-�t} �tojects io the increment that is generated by them. DDA revenues through 2011 are projected to be S4 million to S8nril tot Staff believes these funds should be reserved for the hotel. t Board discussion focused on the suggestion ttiat project I nding be IfNi ited to the amount of TIP it would generate. Board members felt that they needed a clearer picture of ex��tly where DDA stlrJs financially so it was decided to bring the DDA checkbook to the next meeting and continue the d'sZis'sion at that tittle. OTHER BUSINESS I lolidav Displays: A special meeting of t n ZDABoard will need to be scheduled be veen nowand the end of May to discuss holiday displays. UniverCity Connection Video: univerCity Connection wants to put together a video for the cow eluding event of that process. They are asking the DDA to fid the video. Mr.Steiner feels that the DDA would be able to use-, version of the video for our statewide campaign. This s*asjust presented to Nlr.Steiner and the UCC may be able to come up with some funds to share in the cost. A-loved by Mr,\Vol,seconded by Mr.Kastein: To approve the granting of$40,000 to UrliverCity Connection for the purpose of prep ring of video. The motion was approved unanimously. Chan e of eel ing Dates: Ms.Jordan,whose term expires December,2008,has been invited to join the Governor's, late%Ode business dvisory task force,which meets monthly at the same little as the DDA Board meetings. She is the only reps%�mative Ill orthern Colo ado. Mr.Steiner asked if,after 25 years,the DDA Board was willing o change iinonthly Board riteetil}gs fr the first Tuesday of everymonth to another day, The(Board was willing to do this. DDA staff will work on rescheduling meetings. ddoDOWNTOWN DEVELOPMENT AUTHORITY TO: DDA Board of Dit;ctors FROM: Chip Steiner +vv� DATE,: April 3, 2007 +� RE: Housing Authority Request The Fort Collins Housinb Authority is requesting $48,813 for facade improvements to the building it owns at 366 east Mountain Avenue. P The building has five housing units in it that are dedicated to households earning 30 percent of Area Median Income. Total cost of the project.is about$17.1,000 and is proposed to be paid for with DDA funds, CDBG funds, and the governor's Office of Energy Management. Staff believes the DDA should support this request. L,ow income liousing is airiniportant component oft lie downtown residential environment. Since the Housing Authority is a public agency the use of DDA funds can be used for any building improvements—i.e. DDA support need not be limited to the fagad'e of ROW.improvements. If the Board supports the request staff suggest it consider: 1. Asking for a re-design of the stairway. It is not attractive. 2. Increasing the grant by $5,000 to defray the costs of a redesigned stairway. Since this is not technically a facade grant request staff also suggests the miscellaneous category of its.latest bond issue by used to fund the DDA's portion of the project. ag 19 Old Town Square Suite,230 Fort Collins, Colorado 80524 tel: 970.484 2020 fax:970.484.2069 FCj ) Fort Collins I rousing Authority February 27,2007 Mr. Chip Steiner, Executive Director and Board of Directors Downtown Development Authority 19 Old Town Square,Suite 230 Fort Collins, CO 80524 Dear Mr. Steiner and Honorable Board Members, On behalf of the Fort Collins Housing Corporation, owner of 366 East Mountain Avenue, I respectfully submit this request for$48,813 for exterior facade upgrades. These upgrades will be.a part of a renovation.project to the five-unit apartment building for very low income households. This property has been in the Corporation's portfolio since the mid-.1980S and has typically housed single individuals, many of whorl are elderly or disabled. In order to continue to provide housing for this population in great need, we have identified approximately$170,561 in needs. The 366 Mountain Avenue property consists of five one-bedroom apartments for households earning 301/oArea Median Income and has historically served many seniors and disabled single people. This apartment building is located near the northwest corner of Mountain Avenue and Riverside, and it can be seen from_both streets. It was constructed in 1908. There is a great deal of capital improvement needed at this site due to its age. In addition, because of the extremely low rents charged to the tenants it generates a minimal reserve for replacement. Substantial rehabilitation is required in order to preserve this affordable housing for many years to come. The property last had some.rehab work done in 1985, 22 years ago. There is a great deal of concrete work being planned in both the front and rear of the building as the existing concrete is heaved, cracked and deteriorating. Some areas that are currently gravel are hard to maintain and will be replaced with concrete.. The front metal stairs are deteriorating and rotted through in some areas and Currently present the most pressing safety hazard of all. The stairs will be re-built to satisfy the safety needs of thexesidents, as well as the appearance of the facade as per City Historical Preservation staff. Aluminum windows will be replaced, the exterior will be repainted and the awnings replaced. Landscaping and irrigation will be added, as well as exterior security fencing. Heating/cooling systems, upgrades to Energy Star appliances, improved energy efficient windows, and many of the lighting items will e done with the help of the State of 1715 W. Mountain Ave. Fort Collins. CO 80S21 �) Tel: (970)416-1910 1 1 Fax: (970) 221-0821 rvivly.Fcgov:conr/housingaulhority Colorado Office of Energy Management. Lighting items are important to the safety of the residents as there have been issues in the past related to transient people sleeping in cars at the adjacent property as well as the simple nature of a mixed commercial/residential area. The interior work will include replacement of the now cracked and peeling vinyl flooring. Kitchen cabinets will be replaced as they are presently 20 year-old Masonite which have sustained water damage and have swollen fronts. Interior lighting will be upgraded from.incandescent to energy efficient compact florescent. Exterior lighting will also be upgraded for energy efficiency and safety with photocell motion sensors. A grant from the DDA will be combined with a commitment from the Governor's Office of Energy Management in the amount of S39,825, and funding that has been requested from the City of Fort Collins CDBG program.in the amount of S81,923. The 366 East Mountain Avenue property has operated with little to no federal funding since its inception. The extremely low rental revenue does not provide enough cash-flow to do the needed renovations to continue to safely serve these residents into the future. Your contribution will make a great impact. We thank you for your consideration of this request. If you have any questions, please contact me at 416-2917 or jbrewenQfc(ov.com. Sincerely, in is J. Brewen Executive Director, FCI-IA Enclosure 3c� -DDA Minutes June 11.2009 fig.3 l2'EGUI AR 13USINESS 152 S�bliege Facade Grant 12equest(The Cupboard): d7r. Brelig recnsed himself for this discussiol. rtlr. /_rrnroit no-tw-tll1cr��t The Cupboard is o client of his a{x1 he would abstain f from voting on the Tosrrl. Jim Hewitt of the Cupboard, nd Ben Basalay of RB+B Architects presented the facade-iI'pro is for 152 South College. The plans cali-ka'refacing of the building facade with�n��v (brick, creating new window openings,adding new awning aiZan sscreating new parapet and- or"mice assembly in an effort to- in appearance that is complementary to other architcctii doowtown while maintaining the historical integrity of the building. Nh•Hewitt noted that the Cos was substantially lower than anticipated because of the national economic s� nation. t` Nloved by Mr. Woife,secoufd d y Ms. Zibell: To approve thecomuntmen fora grant of up to $35,619 and huthoriza lion tot"the Board Chair to enter into an agreement for the w St-Sncing facade, contingent upo t-osier submission of all DDA requirements for project reimbursement, Including chiding actual cl ccounting documentation, certificate of liability insurance,and grant of facade eascmc It, [))-tile owner; the motion passers unanimously with Mr. Zamzow abstaining: At:t. .tt.B.ctina�..4ld�azura.�tl���3.i:t Ya:nj�ct_ Project'Manager Anne Aspen presented the selection of painter Lisa Cameron as the 2009 Artist in Action. in addition to Ms. Aspen,the Art in Action committee is composed of board members Ellen Zibell and George Brelig,Ellen Martin and Anne Bossert of Art in Public Places, and Paul Mills and Craig Russell of Russell+\Mills Studio. Ms.Cameron uses a fascinating technique to create panels that can stand alone or as a series present a larger composition. The panels will be painted on both sides and upon completion will be mounted in the tMoutezmma Fuller Alley. Ms. Cameron will paint publicly in Old Town Square. The Board discussed which end of the Square is most appropriate for the.prcject. In an effort not to create a delay and to allow the artist to begin planning,'Ms. Aspen asked for tentative approval of expenditure for the project. Ms.Aspen will look into the site options available and budget proposal to the next Board meeting. Moved by Mr. Wolfe,seconded by Mr. Ohison: To authorize the [executive Committee to authorize up to S50,000 for the moving of"Tra"Sect,d" to anew location and to come back to the Board for approval if the projected cost exceeds that amount; the motion passed unanimously 'B and action was requested on the idea of presenting a letter from the Board to recognize and thank D�vi�� and l•ron Neenan for their contribution of the sculpture project"Transcend"and the impetus to tie ongoing p is art projects created in Old Town'Square. The Neenan's will be inv7tothetify Board meeting for a p entatiat of the letter. Moved by Mr. Brelig,s n led by Mr.Zamzow: To approve the presen anon of a letter to David and Sharon Neer an 0 om tit DA Board of Directors with minor et rtorial changes; the motion passed u`uanimously. 720 E. Vine Warehouse Lease Proposal As part ofthe investment strategy for arts and cut r n-profits rofits is the leasing of warehouse space for perfornnance groups[fiat use the Lincoln Center r us among other things,costume storage,set construction and rehearsal space. Staff has ecc n working witigtie owner's broker and has developed a letter of intent to lease the property at ? E. Vine Drive. "file[)erne rts would be threefold. it would help ensure the continued success of d i ntown nonpro6Larts,culhut and s �ntificgroups. Secondly, the Lincoln Center staff involve refit in the oversight of the warehouse will creitt efficient management of planned uses. lastly, hom�ving access to a centralized space will create a sense of e nanence and predictability for of rmance groups. The Boat� c isd'i cussed many facets of the warehouse lease and operations. The proposal is that I DA wo d (ease and give oversight to the Lincoln Center. The space will not be used for performances o Other piiblic functions. The DDA will pay for the unlit es.and insurance. Jill Stillwell praised the collaborative � . DOWNTOWN ddaDEVELOPMENT AUTHORITY MEMO Ile: Relocation of Transcend Sculpture from Old Town.Square to 215 N. Mason St. At the June 11, 2009 Regular DDA Board Meeting,the DDA Board approved allowing the DDA Executive Committee to authorize up to$50,000 to move the Transcend sculpture. Staff is working with a contractor who is uniquely qualified to do this work and a proposal is forthcoming. This memo provides acknowledgement by the Executive Committee of the DDA Board of their authorization to spend a maximum of$50,000 for the sculpture relocation. C ISo acknowledged: 01 Patty Spencerithair Date Bill Sears,Secretary Date u�<13t,%.�a�h�7. y F �f'�� i t F �i i' 1 ? ��� �}�•�����'�F �1�n,`5r?'•r f j � tl �' �t n�,. `:.t "" ty, '•- < ,'.` k.S+'.i* gv ^a i+; -z,c§L '4n'_i'. ss5'+"v:`i.'»1 s'is-,aa +b`*":z.+"tc`x3•`. <,. � '?> c,. 2it`�_r_'. DDA Minutes June 11,2009 pg.2 itl ey Project:, Anne Aspen reported that the outreach meetings have been completed and the schematic" desig, for Montezuma Fidler Alley have begun. Downton Hotel: DDA.and City staffs met with five local groups interested in developing a o vntown hotel. "1'rvo n e meetings are scheduled for June 12"i. Staff feels it is important to hire c n ultants to create an advisor.cam fi-on)the hospitality industry to assist in the development of p� ualification criteria;_formula ting a, otcI brand profile;developing a statement of public participation; provide assistance with screening and selecifii�a development team; and provide advice din 1*1 r �tiations. An RFQ process should be in place by`tkee end of July. Elks Building:_ Staff is coordinating Nvith Stewart Environmental to cpnduct the more detailed and necessary invasive survey work. hi a2ldition, staff is researching besl practices in deconstruction and has established maintenance and security sys is for the buildin7,X REGULAR UPDATES 151 South.College: Jack Wolfe asked Darin Atte rr +lannd Matt Robenalt about discussions Nvith the building tenants and the delay in action on the 1� S. College Avenue fagadc grant request. Mr. Robenalt reported that the owner will not bepursui the grant for the"fro�rt facade at this time as the delay in finding caused financing and tinning�ssires. Nil% Wolfe expresse<i`�giet over the lost opportunity to improve the facade. Because the . and broke the request into two parts legal counsel felt there was no reason the owner could not o e back to request the funding for the secon I agade.at a later date. Board discussion directed staff t bring back a recommendation for changing the weld��ig in the,fgade grant criteria and project con ninnent to allow additional funding for facades not inchid'e m an original grant request,especigll -tt�ight of the desire to enhance private property in the impron'edal ys. Avert'F ous he Poudre Landmarks Foundation has contacted DDA about'n-enovationssan dd repairs to the Avery I I t e. Staff and City will determine whether there is an opportunity to leverage State -l+storical Fun fo cover a portion of the proposed work before a proposal is brought before the Board. Sales Tax: Chuck Seest handed out the sales tax report for April sales reflected in May collections. "1'lia overall sales tax figures for the DDA district are down foi•the month and year-to-date. ® CONSENT AGENDA iiolida�1�Jjtc nlr t Ad l�endltnt: Staff is requesting_expanding coverage of the holiday lights and approval of the DDA regular annual contribution. This includes approval to amend the contract with Swingle and expand holiday light coverage to include coverage between Oak Street Plaza and Mason Street in the amount of up to S5,000 and approve S30,000+CPI for the DDA portion of the annual costs for installation,takedown and storage. I-7owe Street inclusion: In March 2009,the Board approved Resolution 2009-03 recommending 'ity Council app ova-arequest for inclusion of several properties ur the area of Laurel and Ili -tve m the DDA boundary. The Council-ap roved the inclusion on May 5,2009. The Assesso_r,'S�-tatf contacted DDA staff, noting an error in the submitte 72gaI description caused by inconsisterjitn orf oration in'the record. Staff recommends the Board repeal Resolution 2009- 3 and appro Rt rtimr 2009-01 allowing the inclusion of the I-Iowes Street Area Properties into the DDA_j3_DLurcl4O,. Alley Pavers: Each of this year's three p�A3 ,,1i leys will h`aii:-app�L.Coxmnately 20 pavers with artwork created by children in our cornmu- 'based on the themes of the three all> susminability,Fort Collins- history,and eclecticlbo�lli anin-"1'he cost of the pavers and student honoraria wi11 't'appio imately $25,000. Since ae<o struction budget for the alley project has not yet been presented to the Boa for approv ,sta f.is requesting approval of up to S25,000 of the,aIley innprovennent construction budget to Ue n for the Art in Public Places paver production. Moved by Mr.Wolfe,seconded by Mr.Sears: To approve the consent agenda as presented; the motion passed unanimously. I d r DOWNTOWN DEVELOPMENT 1 dda f i TO: Board of Directors FROM: Matt Robenalt DATE: June 11, 2009 RE: 2009 Holiday Lights Expansion: W. Oalc Street The original purchase of the LED lights was authorized by the Board on June 1, 2006. The i DDA owns the light strings and Swingle Tree &Lawn Care provides installation, take-down and storage. DDA and City staff would like'to inierease.the coverage of the LED lights for the 2009,holiday i season by extending the lights west of Oak Street-Plaza.to Mason Street at an estimated cost of $5000. "This expansion will provide a better experience for patrons of the W. Oak Street restaurants and businesses during the holiday season,and provide a dramatic enhancement to the;amnnal lighting ceremony that is held in Oak Street Plaza. Background i In 2007, the DDA's total cost:for light string purchase and installation was$119,295, and its partnet•s provided the following'contributions: City$15,000; DBA $15,000 In 2008, the DDA's total cost;for installation'and annual replacement was $30,000. The DDA enhanced the coverage of lighting on Pine Street and E. Mountain Avenue for a cost of$5,696. E Partners provided the following contributions: City$30,000; DBA $15,000. Amnal replacement costs for broken or non-functioning1ights have been estimated at$1,400 to $2,800 per year or 1 to 2%of the original purchase price, and this is the DDA's obligation. According to Swingle,as the light strings age it is possible that replacement costs could rise to 20%amivally. Staff Recommendation Staff recommends approval to amend the contract with.Swingle and expand the holiday light coverage to include the portion of W. Oak Street.between Oak Street Plaza and Mason Street in the amount of$5,000,'and approve$30,000+CPI for the DDA portion of the annual costs for installation, takedown, and storage. i tea . 3 i >"E`wnrs,,s'°. »fix r R: ^S. d'r�3 c r .:i.S'r n7w7 r -` Y) alil ',i t r{t�i� t�tt:%?`, d �i,.(7 ,il�lti{ r3 7it@ •�1lX,+��lt �l.?{�5 td){d}Fst,i't' Y�!l�;i�',�(11?u��ti_ /t �i11, iliitltll,(t�i(I ORDINANCE NO. 087, 2009 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING PRIOR YEAR RESERVES IN THE DOWNTOWN DEVELOPMENT AUTHORITY FUND FOR EXPENDITURE ON PROJECTS IN ACCORDANCE WITH THE DOWNTOWN PLAN OF DEVELOPMENT WHEREAS, on April 21, 1981, the City Council adopted Ordinance No. 046, 1981, establishing the Fort Collins, Colorado, Downtown Development Authority (the "Authority"); and WHEREAS, the Authority's,Plan of Development was approved by the City Council on September 8, 1981, and established the purpose of the Authority and the types of projects in which the Authority would participate; and WHEREAS, bond proceeds from 2008 through August 2009 have accrued interest earnings in the amount of$332,044; and WHEREAS, staff has identified project savings of $1,555,249 from bond proceeds currently in reserves; and WHEREAS, staff has also identified bond proceeds, from projects not currently ready for reimbursement in the amount of$1,614,085; and WHEREAS, Article V, Section 10, of the City Charter 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 the purpose for which the transferred funds are to be expended remains unchanged; and WHEREAS, on August 13, 2009, the Board of Directors of the Authority (the "Board") passed and adopted a resolution approving and recommending the funding of the projects and programs identified below; and. WHEREAS, the Board recommends to the City Council these expenditures for the projects and programs identified below. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that there is hereby appropriated for expenditure from reserves in the Downtown Development Authority Fund the sum of THREE MILLION FIVE HUNDRED ONE THOUSAND THREE HUNDRED SEVENTY EIGHT DOLLARS ($3,501,378) to be used for the projects stated below: Purchase of Warehouse $1,800,000 Mitchell Block Public Improvements 427,502 Elks Building Environmental Abatement and Deconstruction 421,000 f 1 Facade Grant Program—Funding 350,000 Bas Bleu Theater Lease 220,000 Lincoln Center Rental and Tech Fees Underwriting 144,063 Fort Collins Housing Authority Project 53,813 Relocation of Transcend Sculpture 50,000 Holiday Lights Display Contribution for 2009 35,000 Total Projects $3,501,378 Introduced, considered favorably on first reading, and ordered published this I st day of September, A.D. 2009, and to be presented for final passage on the 15th day of September, A.D. 2009. Mayor ATTEST: City Clerk Passed and adopted on final reading on the 15th day of September, A.D. 2009. Mayor ATTEST: City Clerk