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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 12/15/2009 - SECOND READING OF ORDINANCE NO. 135, 2009, APPROPR DATE: December 15, 2009 AGENDA ITEM SUMMARY STAFF: Mike Freeman _ Josh Birks F FO COLLINS CITY COUNCIL Second Reading of Ordinance No. 135, 2009, Appropriating Prior Years Reserves in the Capital Projects Fund and Authorizing the Transfer of Appropriated Amounts Between Funds for a Commercial Redevelopment Study for the Midtown Commercial Corridor Area. EXECUTIVE SUMMARY Council directed staff to prepare a redevelopment study for the Midtown Commercial Corridor at the June 9, 2009 Work Session. Staff solicited requests for proposal, resulting in 18 responses from across the nation. Five finalists were interviewed by a selection committee of Economic Health,Advanced Planning,and Current Planning staff. The selection committee,using the City's purchasing process,selected a team led by ELS Architecture and Urban Design, supported by Economic and Planning Systems and Warren Wilson. The Ordinance, unanimously adopted on First Reading on December 1, 2009, appropriates residual funds from the capital project fund prior year reserves to cover the cost of the Study and provides additional funds for implementation work. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. Copy of First Reading Agenda Item Summary- December 1, 2009. (w/o original attachments) ATTACHMENT 1 DATE: December 1, 2009 ITEM SUMMARY • STAFF: Mike Freeman AGENDA OUNCIL Josh Birks FORT COLLINS CITY C First Reading of Ordinance No. 135, 2009, Appropriating Prior Years Reserves in the Capital Projects Fund and Authorizing the Transfer of Appropriated Amounts Between Funds for a Commercial Redevelopment Study for the Midtown Commercial Corridor Area. EXECUTIVE SUMMARY } \ ( � � i � l f Council directed staff to prepare a redevelopm er\\study�forlt+e Midtowj Commercial Corridor at the June 9, 2009 Work Session. Staff solicited requests for-proposalyresulting-in 18 responses from across the nation. Five finalists were interviewed by a selection committee of Economic Health,Advanced Planning,and Current Planning staff. The selection committee,using the City's purchasing process,selected a team led by ELS Architecture and Urban Design, supported by Economic and Planning Systems and Warren Wilson. The Ordinance appropriates residual funds from the capital project fund prior year reserves to cover the cost of the Study and provide additional funds for implementation work. BACKGROUND / DISCUSSION The College Avenue commercial corrido play d a sign 6lt ro e in fhe history of retail development in Fort Collins. The Foothills Mall was origina`ly built in �973. 1.9 the-early years, the Mall enjoyed a significant amount of visitation from local residents, County residents, and out of-state visitors.Net taxable retail sales at the Foothills Mall have fallen by 42% since 2001, or 7.6 pe-rcent annually, which has had assignificant negative financial impact upon the City's general fund. The redevelopment of the Foothills Mall and othervacant properties along College Avenue in the Midtown Commercial Corridor Area has been difficult to achieve. Today,approximately 700,000 square feet of vacant retail space(including vacancies at Foothills Mall) exists along the College Avenue corridor. Absent the revitalization of the Mall property and other key vacant parcels, vacancy is likely to increase. In addition, General Growth Properties and the special purpose entity which owns the Foothills Mall as a subsidiary, have entered into Chapter 11 bankruptcy protection. The College Avenue corridor still contains several successful retail properties. The continued decline of the area could put these properties in jeopardy. PROJECT OBJECTIVE j This Ordinance appropriates the fundstn`cessary four the selected consultant to achieve the following objectives: FOOTHILLS MALL: • A framework and concept plan for the redevelopment of the Mall • An accompanying draft public assistance package to overcome the primary economic and financial hurdles to redevelopment of the Mall • Tools to assist in marketing the Mall for redevelopment amongst local, state, and national developers. MIDTOWN COMMERCIAL CORRIDOR(MCC) • An analysis of the corridor id f fi in "hi ial" eloi` sites y � 9_� P ,� �1 • A study of the current conditions affecting the MCC, including land use, ownership, vacancy, and any other attributes essential to understanding redevelopment potentials December 1, 2009 -2- ITEM 19 • An action plan providing direction to City staff for alleviating physical, economic, and policy barriers to redevelopment along the MCC. SELECTED TEAM The City of Fort Collins issued a Request for Proposals (#7051) on July 22, 2009 with responses due on August 12, 2009. The purchasing department received 18 responses from a variety of companies located in Fort Collins and across the nation. The selection committee, comprised of Economic Health, Advanced Planning, and Current Planning staff, reviewed the proposals and independently ranked each. As a result, five finalists were selected for interviews. Interviews were-conducted the week of September 14, 2009. After independently ranking the interviews,the selection committee.chose ELS Architecture and Urban Design("ELS"), supported by Economic and Planning �Systems!("EPS"�;)aid.warren r. Wilson as the finalist. The selected team provides a "real world" perspective based on extensive experience allowing the team to evaluate the feasibility of redevelopment in the corridor and at the�mall. i -'L - A brief excerpt from the proposal follows describing each team member: • ELS has over forty years of experience in design and creation of great public places and catalyst projects, particularly for mixed-use retail environments. Many of their recent efforts have focused on the redevelopment of aging malls and adjacent commercial strips for both private and public clients. These redevelopment projects have ranged from the replacement of empty department stores with outdoor shopping streets in otherwise successful malls to the complete demolition of mall uses in favor of open-air, pedestrian friendly, mixed-use districts. • EPS offers a full range of economic andjfnancial analysis services)focusing on public-private development. The firm has completed bothiretail de\elopmenf ad'isory services and a detailed study of development opportunities in the Mason Corridor that are pivotal to the Midtown Study. EPS'wide technical analysis and development advisory services combined withts his`t ry serving Fort Collins provide a strong foundation for the team. • Warren Wilson brings extensive retail, mixed-use, planned community, site selection, redevelopment, and ground-up development experience to the team. As a senior executive at The Rouse Company and General Growth Properties, Mr. Wilson identified, evaluated, and developed retail and mixed-use projects for over thirty-five years including many developments that were planned and designed by ELS. APPROPRIATION OF FUNDS. Bonn .sue —� r.. �s The Ordinance will appropriate $286,090 of residual funds from the capital project fund prior year reserves. These funds have accumulated primarily fromfunappro�priated JWarriinggss6ri inw�ents. PHASE I - Midtown Commercial Corrid.or,Redevelopment Study The appropriation of$215,000 will facilitate the completion of the Midtown Commercial Corridor Redevelopment Study as described in the attached and executed Professional Services Agreement between the City of Fort Collins and ELS Architecture and Urban Design. PHASE II - Implementation The appropriation of$71,090 will provide funds that can be used for the following implementation activities, after the completion of the redevelopment study: • Consulting fees for Economic/Im Analysesof prcp�d redevelopments pments • Consulting fees for analysis ofproposed!redevelopment.project fnancial need • Follow up activities and investments that may lie identified in the Action Plan developed as part of the redevelopment study • Other costs including legal fees, consulting fees, and other expenditures as needed to assist in the implementation of the final Midtown Commercial Corridor Redevelopment Study. December 1, 2009 -3- ITEM 19 FINANCIAL IMPACT The ordinance will appropriate$286,090 of residual funds from the capital project fund prior year reserves. These funds have accumulated primarily from unappropriated earnings on investments. Phase I -the Midtown Commercial Corridor Redevelopment study will receive$215,000 of the appropriated funds. Phase II-Implementation will receive the balance of the funds or$71,090. This appropriation does not affect the projected general fund balance. SUSTAINABILITY: ECONOMIC, ENVIRONMENTAL AND SOCIAL IMPACTS ,�� � E]opm �St rr . The completion of the Midtown Commercial Corrndor Redevelopmment Study will impact the economic, environmental and social condition of the community(in the following ways: L Economic-The redevelopment study will_focus�n:the:Opportu' pities for-new development along the College Avenue corridor. Specifically the study will provide recommendations for new retail and entertainment opportunities that may help to increase retail sales in the City. Environmental-Redevelopment provides opportunity for development to occur within the core of the community as opposed to the outer edge. This may reduce vehicle miles traveled and can facilitate the reuses of portions of the community currently underutilized preserving vacant land for other purposes. Social-One goal of the redevelopment study is to create greater connectivity between the adjacent neighborhoods and the commercial development along College Avenue. The hope is this creates additional gathering places for the neighborhoods providing an opportunity forva- reater sense,of=community. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BOARD/ COMMISSION RECOMMENDATION The Economic Advisory Commission submitted a recommendation in support of the Midtown Commercial Corridor Redevelopment Study to City Council on June 8, 2009. �PPUBLIC OUTREACH , The solicitation and selection of a consultant to complete the Midtown Commercial Corridor Redevelopment Study did not include any public outreach. However, the study will include several forms of public outreach including an informational website, public meetings, meetings with individual stakeholders from the corridor, and potentially focus groups of interested parties and stakeholders. ATTACHMENTS 1. Location map 7 7 2. Executed Professional Services Agreement,%Scobpe of Services; Fee Schedule, & Insurance Requirements dated November 13, 2009 tt"� 3. Economic Advisory Commiss'onmeeti g=mute s; 2009,June 3, 2009 4. Economic Advisory Commission recommendation dated June 8, 2009 ORDINANCE NO. 135, 2009 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING PRIOR YEAR RESERVES IN THE CAPITAL PROJECTS FUND AND AUTHORIZING THE TRANSFER OF APPROPRIATED AMOUNTS BETWEEN FUNDS FOR A COMMERCIAL REDEVELOPMENT STUDY FOR THE MIDTOWN COMMERCIAL CORRIDOR AREA WHEREAS, approximately 700,000 square feet of vacant retail space, including vacancies at the Foothills Mall, exist along the southern portion of the College Avenue corridor, also known as the Midtown Commercial Corridor; and WHEREAS, several successful retail properties are located in the Midtown Commercial Corridor but continued decline in the area could jeopardize these retail properties; and WHEREAS, at its June 9, 2009, work session, City Council directed City staff to prepare a redevelopment study for the Midtown Commercial Corridor; and WHEREAS,the City issued a Request for Proposal for consultants to assist City staff in the redevelopment study and ultimately selected a team led by ELS Architecture and Urban Design, supported by Economic and Planning Systems and Warren Wilson, as consultants; and WHEREAS, this ordinance appropriates $215,000 for the completion of the Midtown Commercial Corridor Redevelopment Study and$71,090 to be used for implementation activities; and WHEREAS, funds are available from the Capital Projects Fund prior year reserves accumulated from unappropriated earnings on investments; and WHEREAS,Article V,Section 9 of the City Charter permits the City Council to appropriate by ordinance at any time during the fiscal year such funds for expenditure as may be available from reserves accumulated in prior years, notwithstanding that such reserves were not previously appropriated; and WHEREAS,Article V,Section 10,of the City Charter authorizes the City Council to transfer by ordinance any unexpended 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. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that there is hereby appropriated for expenditure from prior year reserves in the Capital Projects Fund the sum of TWO HUNDRED EIGHTY-SIX THOUSAND AND NINETY DOLLARS ($286,090) to be transferred to the General Fund and appropriated therein for a Commercial Redevelopment Study for the Midtown Commercial Corridor and implementation activities upon completion of that study. Introduced, considered favorably on first reading, and ordered published this lst day of December, A.D. 2009, and to be'presented for final passage on the 15th day of December, A.D. 2009. Mayor ATTEST: City Clerk Passed and adopted on final reading on the 15th day of December, A.D. 2009. Mayor ATTEST: City Clerk