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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 08/15/2006 - SECOND READING OF ORDINANCE NO. 105, 2006, APPROPR ITEM NUMBER: 7 AGENDA ITEM SUMMARY DATE: August 15, 2006 FORT COLLINS CITY COUNCIL STAFF: Maurice Head SUBJECT Second Reading of Ordinance No. 105,2006,Appropriating Unanticipated Developer Contributions in the General Fund for Affordable Housing. RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. EXECUTIVE SUMMARY This Ordinance,unanimously adopted on First Reading on July 18,2006, appropriates unanticipated revenue in the Advance Planning budget from Flying Heights, LLC, for density bonuses the City received in exchange for a binding,written recordable relinquishment of the City's rights under the Agreement of Restrictive Covenants Affecting Real Property. $14,242 will be appropriated to the Affordable Housing Fund to be used in the Competitive Process to award the funds for other affordable housing projects. ITEM NUMBER: 17 AGENDA ITEM SUMMARY DATE: JuIy18, 2006 FORT COLLINS CITY COUNCIL STAFF: Maurice Head SUBJECT r First Reading of Ordinance No. 105, 2006, Appropriating Unanticipated Developer Contributions in the General Fund for Affordable Housing. RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. EXECUTIVE SUMMARY This Ordinance appropriates unanticipated revenue in the Advance Planning budget from Flying Heights, LLC, for density bofZs Ci v ge a binding, written recordable relinquishment of the City's un the A eFrdrable of ctive Covenants Affecting Real Property. $14,242 will beopriat to able ousing Fund to be used in the Competitive Process to awar s era sing projects. BACKGROUND On April 18, 2003, the City and APACO Industries and Importers, Inc. and Jensen Investment Group,LLC,entered into an Agreement of Restrictive Covenants Affecting Real Property pertaining to a 19-unit development project known as Cherokee Flying Heights PDP ("Cherokee PDP"). APACO Industries and Imports, Inc. abandoned the project after accruing large debts against the development. In the fall of2005,the City was approached by Flying Heights,LLC,the new developer of Cherokee PDP, who explained that the debt structure on the project made it infeasible to develop Cherokee PDP as affordable housing. Th2or ope opuft�mritent ' e ge for the City waiving the affordability requirements and ere oc a venants, it would be willing to reimburse the City for fees wai l ed cate e City for the density bonus of four additional units which were o e el be use of its status as an affordable housing project. The City agreed to accept a certified check in the amount of$45,853, in exchange for a binding, written and recordable relinquishment of the City's rights under the Agreement of Restrictive Covenants Affecting Real Property. The City deposited Flying Heights, LLC,payment of$45,853 in January, 2006. July 18, 2006 -2. Item No. 17 The breakdown of these fees and density bonuses is as follows: 1. Engineering- Fees X5C33 2. Building & Zoning ermi 3. Advance Planning fforda Ho n TOTAL 53 COPY ORDINANCE NO. 105, 2006 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING UNANTICIPATED DEVELOPER CONTRIBUTIONS IN THE GENERAL FUND FOR AFFORDABLE HOUSING WHEREAS,the City of Fort Collins and APACO Industries and Importers,Inc.and Jensen Investment Group, LLC, entered into an Agreement of Restrictive Covenants Affecting Real Property pertaining to a 19-unit development project known as Cherokee Flying Heights PDP ("Cherokee PDP"); and WHEREAS, APACO Industries and Importers, Inc. and Jensen Investment Group, LLC, subsequently decided not to pursue the project; and WHEREAS,in the fall of 2005,Flying Heights,LLC,the new developer of Cherokee PDP, approached the City and explained that the debt structure on the project made the feasibility of developing Cherokee PDP as affordable housing impracticable; and WHEREAS,the developer proposed that in exchange for the City waiving the requirement for affordable housing under the Agreement of Restrictive Covenants, they would pay the City engineering and permit fees that were waived or delayed and compensate the City for the density bonus of four additional units which was granted to the development because of its status as an affordable housing project; and WHEREAS,the City and Flying Heights,LLC,ultimately agreed to a binding,written and recordable relinquishment of the City's rights under the Agreement of Restrictive Covenants Affecting Real Property in exchange for a certified check in the amount of$45,853; and WHEREAS, in January, 2006, Flying Heights, LLC, paid the City previously waived engineering fees-$6,178;previously waived building and zoning permit fees-$25,433;and paid a premium of$14,242 for the affordable housing density bonus for a total of$45,853; and WHEREAS, Council wishes to appropriate the funds received for affordable housing ($14,242) to be used in the Competitive Process to award these funds for other affordable housing projects; and WHEREAS,Article V,Section 9,of the Charter of the City of Fort Collins permits the City Council to make supplemental appropriations by ordinance at any time during the fiscal year, provided that the total amount of such supplemental appropriations, in combination with all previous appropriations for that fiscal year, does not exceed the current estimate of actual and anticipated revenues to be received during the fiscal year; and WHEREAS,City Staff has determined that the appropriation of the developer contribution, as described herein, will not cause the total amount appropriated in the General Fund to exceed the current estimate of actual and anticipated revenues to be received in that fund during the fiscal year. NOW,THEREFORE,BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that there is hereby appropriated from unanticipated revenue in the General Fund the sum of FOURTEEN THOUSAND TWO HUNDRED FORTY-TWO DOLLARS ($14,242) for expenditure in the General Fund for the affordable housing competitive process. Introduced and considered favorably on first reading,and ordered published this 18th day of July, A.D. 2006, and to be presented for final passage on t h day of August, A . 2006. May ATTEST: City Clerk Passed and adopted on final reading this 15th day of August, A.D. 2006. Mayor ATTEST: City Clerk