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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 02/20/2007 - RESOLUTION 2007-014 SUBMITTING THE AMENDED NORTH C ITEM NUMBER: 24 AGENDA ITEM SUMMARY DATE: February 20, 2007 FORT COLLINS CITY COUNCIL STAFF: Clark Mapes SUBJECT Resolution 2007-014 Submitting the Amended North College Avenue Urban Renewal Plan to the Planning and Zoning Board, the Larimer County Board of Commissioners, and the Poudre School District Board of Education. RECOMMENDATION Staff recommends adoption of the Resolution. EXECUTIVE SUMMARY Staff is taking the necessary steps to bring forward an Amendment to the adopted Urban Renewal Plan for the North College Avenue corridor area,for a Council adoption hearing on March 20. One of the necessary steps required by Colorado's Urban Renewal Law is for the Council to formally submit the Urban Renewal Plan to the Planning and Zoning Board for its review and recommendation regarding conformance with City Plan,which is the general plan for development of the municipality as a whole. The Council must also allow the Poudre School District to "participate in an advisory capacity." The Planning and Zoning Board is scheduled to review the proposed Urban Renewal Plan on March 15,2007. The Council is scheduled to conduct a public hearing and consider resolutions approving an amended`Blight Study" and Urban Renewal Plan at their March 20 regular meeting. Adoption of Resolution 2007-014, referring the Plan to the other respective bodies, does not commit the Council to approving the amended Blight Study and Urban Renewal Plan for the area at its March 20 meeting. BACKGROUND In 1982,the Fort Collins City Council created an Urban Renewal Authority(URA) and designated itself as the governing board (known as the "Authority"). The boundaries of the URA are the municipal limits. The Fort Collins URA was created to prevent and eliminate conditions related to certain"blight factors"in the community. State Statutes gives the URA broad powers to carry out its statutory mandate. Included are the powers to enter into contracts, borrow funds and acquire property voluntarily or by eminent domain,among others. Urban renewal projects maybe financed in a variety of ways. URAs are authorized to borrow money, issue bonds, and accept grants from public or private sources. The principal method of financing urban renewal projects is through February 20, 2007 -2- Item No. 24 obligations secured by property tax or sales tax increments from the project area ("tax increment financing"). An URA exercises its powers by planning and carrying out urban renewal plans in urban renewal areas. In 2004,the City Council adopted an update to City Plan,the City's Comprehensive Plan. Principle GM-8 of City Plan states the following: The City will promote compatible infill and redevelopment in areas within the Growth Management Area boundary. And, Policy GM-8.1 of City Plan states the following: Targeted Redevelopment/Infill. Redevelopment and infill development will be encouraged in targeted areas. The purpose of these areas is to channel growth where it will be beneficial and can best improve access to jobs,housing and services with city fewer and shorter auto trips. The targeted areas are parts of the where general agreement exists that development or redevelopment is beneficial. A major goal is to increase economic activity in the area to benefit existing residents and businesses and, where necessary, provide the stimulus to redevelop. These areas should be defined from City Plan, Subarea Plans,Zoning and locational criteria such as: a. Underutilized land b. Areas already undergoing positive change, which is expected to continue C. Areas where infrastructure capacity exists d. Areas where public investment is warranted from a policy perspective e. Areas with special opportunities, such as where major public or private investment is already planned f. Transportation opportunities: • Along travel corridors • Along enhanced travel corridors City Plan also contains a map (copy attached) which depicts "Targeted Redevelopment Areas" in the Growth Management Area boundary. The area being proposed for inclusion into the North College Avenue Urban Renewal Plan (Area #4) is proposed to be added to the Targeted Redevelopment Areas map in City Plan on March 6, as part of the North College Corridor Plan (NCCP)update, scheduled for Council's March 6, 2007 hearing. SPECIFIC BACKGROUND REGARDING THIS AMENDMENT Adopted Plan ANorth College Avenue Urban Renewal Plan was adopted in December,2004,largely in response to a request by the North Fort Collins Business Association. February 20, 2007 -3- Item No. 24 Preparation of the Plan involved wide-ranging public discussion. Boundary expansion to the east was the one outstanding issue that never was adequately resolved, and was noted as needing further consideration. A public process to discuss the boundary expansion was pursued in the spring of 2005 following adoption of the Plan,but did not proceed to hearing. Key issues which prevented completion of the process were lack of clarity about (1) the context of the area in relation to the North College corridor, (2)the purposes of expansion,and(3)concerns about including land likely to develop as primarily residential use. The conclusion of City Council and staff was essentially that the time was not right and the concept needed further exploration. Proposed Boundary Expansion The eastern edge of the currently adopted Plan boundary is Redwood Street, the half-mile point between North College Avenue and Lemay Avenue. Further public discussion among interested citizens and City staff has now led to a clearer conclusion that expansion of the boundary eastward to the realignment of Lemay Avenue is warranted. The expansion would take in undeveloped property generally centered on the proposed realignment of Vine Drive between Conifer Street and existing Vine Drive. During development of the update to the North College Corridor Plan, the influences of the proposed realignment of Vine Drive were integrated into the plan as a major factor. The plan update process highlighted the magnitude of changes introduced by the proposed realignment of"New Vine Drive" through the middle of the largest area of undeveloped land in and adjacent to the corridor. The effects of the realigned arterial street are further magnified by two major water lines proposed to parallel the roadway, and a major channel or pipe to carry stormwater flows. Influences of these facilities are tied to the whole stretch from North College Avenue to Lemay Avenue. Influences include extraordinary costs and significant impacts on land use and transportation. Specifically,some of the influences of the realigned Vine depend on how it intersects with Lemay Avenue,and on the required replacement of the existing Vine/Lemay intersection with a completely new intersection based on realignment of both streets into open land to accommodate a full size arterial intersection. Conifer Street and North College Avenue from Conifer south are currently designated as an Enhanced Travel Corridor at the time of this plan;however the proposed realignment of Vine Drive has launched conversations about whether that designation may shift from Conifer Street to the New Vine Drive, with implications for the North College Corridor. Another consideration in expanding the Plan area eastward along realigned Vine Drive came from market analysis done in 2005 as an input to the NCCP. That analysis highlighted a very important need to increase residential development in the trade area. While the introduction of"New Vine" has raised questions about a greater potential for non-residential uses,the proposed area to be added is still envisioned as a good opportunity for residential development directly tied to the North College corridor by the new roadway. February 20, 2007 -4- Item No. 24 For all these reasons, inclusion of the area is integral and essential to the North College corridor. Inclusion on the map generally means there is an increased policy basis for the City to help fund extra-ordinary infrastructure needs due to deficiencies in existing infrastructure, and to provide special features or assistance needed to accommodate the impacts of major changes which are envisioned. The plan expansion allows for expanded the use of tax increment financing(TIF)to pay for needed infrastructure associated with development or redevelopment in the overall Plan area. The actual proposed changes to the documents are minor. In the Plan, only the map and boundary description is changed. In the Existing Conditions Study, the maps are changed along with a few of the blight factor descriptions. By adopting Resolution 2007-014 the Council will formally submit the Urban Renewal Plan to the Planning and Zoning Board, the Larimer County Board of Commissioners and the Poudre School District Board of Education, for their review and, with respect to the Planning and Zoning Board, for written recommendation as to its conformity with City Plan. Adoption of Resolution 2007-014 does not commit the Council to approve the AmendedNorth College Avenue Urban Renewal Plan at this time. ATTACHMENTS 1. Targeted Redevelopment Areas map from City Plan with proposed amendment per pending North College Corridor Plan update. Proposed Addition � r-x d - ✓ 1 r oaxa r .. g IOILEIOMII `k -_ x. i � I tom. Areas Identified by R e d e v e l o men t 'ra rgeted Redevelopment Areas Subarea Plans(Additional) p 1-East Mullberry,Corridor 5-Downtown Potential Intensification Areas and I n f i I I 2-Mason Street Corridor 6-Foothills Mall per Zoning without a Subarea Plan Source:Fort Collins&EDAW 3-Campus West 7-CSU L �� City limits 4-North College 8-South College p p.5 i Miles 9-CSU Foothills Campus Growth Management Area 0 RESOLUTION 2007-014 OF THE COUNCIL OF THE CITY OF FORT COLLINS SUBMITTING THE AMENDED NORTH COLLEGE AVENUE URBAN RENEWAL PLAN TO THE PLANNING AND ZONING BOARD, THE LARIMER COUNTY BOARD OF COMMISSIONERS AND THE POUDRE SCHOOL DISTRICT BOARD OF EDUCATION WHEREAS, the Council of the City of Fort Collins has heretofore established an Urban Renewal Authority and,by Resolution 2004-152,made findings and approved the Urban Renewal Plan for the North College Avenue Corridor; and WHEREAS,the eastern edge of the North College Avenue Urban Renewal Plan is presently established at Redwood Street but,following additional public discussion among interested citizens and Citystaff,it has become apparent to the Council that the expansion of the North College Avenue PP P g Urban Renewal Plan area eastward to the realignment of Lemay Avenue maybe in the best interest of the City because the expansion would include undeveloped property generally centered on the proposed realignment of Vine Drive between Conifer Street and existing Vine Drive; and WHEREAS, the City Council has determined that this proposed expansion should be submitted to the Planning and Zoning Board for its advice and recommendation regarding the propriety thereof and should also be submitted to the Larimer County Board of Commissions and the Poudre School District Board of Education in accordance with the requirements of the provisions of Colorado Revised Statute Section 31-25-107. NOW THEREFORE BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That, in accordance with Section 31-25-01-107 of the Colorado Revised Statutes ,the proposed amended North College Avenue Urban Renewal Plan(the"Plan"),attached hereto as Exhibit"A", shall be promptly submitted by the City Manager to the City's Planning and Zoning Board, the Poudre School District Board of Education and the Larimer County Board of Commissioners with specific instructions to the Planning and Zoning Board to review the proposed amended Plan and give written recommendations to the Council within thirty days after receipt of the proposed amended Plan,specifically and solely as to whether or not the proposed Plan complies with the City's Comprehensive Plan (City Plan). Section 2. That the City Manager is hereby authorized to submit to the Planning and Zoning Board, the Poudre School District Board of Education and the Larimer County Board of Commissioners any impact reports or substantive amendments to, or updates of, the proposed amended Plan, so as to ensure compliance with the requirements of the Colorado Urban Renewal Law. Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 20th day of February, A.D. 2007. Mayor ATTEST: City Clerk EXHIBIT DRAFT AMENDED North College Avenue Urban Renewal Plan 6a City of Fort Collins Prepared for: City of Fort Collins and Fort Collins Urban Renewal Authority Amended February 14,2007 North College Avenue Urban Renewal Plan f Table of Contents 1. Preface and Intent ......................................................................................... 3 2. Finding of "Blight" ........................................................................................ 5 3. Plan Objectives.............................................................................................. 6 4. Renewal Activities......................................................................................... 6 5. Development Standards and Procedures.................................................... 8 6. Conformance ................................................................................................. 8 UrbanRenewal Law...........................................................................................................8 CityPlan.............................................................................................................................8 7. Project Financing .......................................................................................... 9 Property Tax Increment................................................................................................... 10 SalesTax Increment........................................................................................................10 Tax Increment Reimbursement..........................................................................10 8. Plan Advisory Group................................................................................... 11 9. Modifications to the Plan ............................................................................ 11 10. Reasonable Variations .............................................................................. 11 North College Avenue Urban Renewal Plan 2 1 . Preface and Intent The North College Avenue Corridor Renewal Plan (Plan) is an Urban Renewal Plan prepared for the Fort Collins Urban Renewal Authority (Authority) and the City of Fort Collins (the City) , pursuant to the provisions of the Urban Renewal Law, Colo . Rev. Stat. § § 31 -25 - 101 et seq. (Urban Renewal Law) . Terms used in the Plan have the same meaning as in the Urban Renewal Law. The jurisdictional boundaries of the Authority are the same as the boundaries of the City. Within the City boundaries there may be one or more urban renewal areas . This Plan describes the framework for certain public undertakings constituting urban renewal projects and other authorized activities under the Urban Renewal Law in the North College Corridor area, located in the City of Fort Collins, Larimer County, Colorado . The boundary of the area to which this Plan applies generally includes those properties ' ^^ ^*ea .A .: *ti : fl the area bounded by: -"The Cache La Pou re River on the so ith 7 *t e T arin er Weld el Carnal o the v. `.ft f -wandan ifFegular- line gener-ally about a mile, fifoffl. College Ave4flue offln. flfie llvest� Avenue o the east along North College Avenue and along the planned realignment of Vine Drive extending east to Lemay Avenue . The area is generally bounded by: The Cache La Poudre River on the south, the Larimer-Weld Canal on the north, an irregular line generally about a quarter mile from North College Avenue on the west, and irregular line generally extending to Redwood Street about a half one-quarter to one mile from North College Avenue on the east. The plan area is depicted on the Boundary Map on the following page . A legal description of the area is attached hereto as Appendix A. North College Avenue Urban Renewal Plan 3 N North College Urban Renewal Plan Proposed Boundary Expansion WIL WILLO LN A I t9 XI TING AREA VIN R E VINE DR a ❑ ❑ FT _ » This Plan was prepared for adoption by the City Council in recognition that the Renewal Area requires a coordinated strategy, with financing possibilities, to eliminate blight and prevent the spread of blight, and accomplish the City' s development objectives for improving the viability of the area. The Plan effort was originated in response to a request by existing property owners in the area. Owners reached consensus and requested the establishment of a renewal plan after years of involvement in public discussion. As a group, they recognize the problems with existing development, which is largely outdated and substandard, constituting blighted conditions, and they want to stay involved in solutions that fit the area. The driving interest in the establishment of this Plan is to begin offering tax increment financing as a tool to stimulate and leverage both public and private sector development (including redevelopment) , to help eliminate blight and prevent the spread of blight. It is the intent of this Plan for any development projects and other implementation actions to be done in a responsive manner, with full consideration for interests and concerns of property owners in the area. Development and redevelopment in the area is anticipated to occur incrementally over a substantial period of time. North College Avenue Urban Renewal Plan 4 2. Finding of "Blight" Based on the evidence presented at a public hearing, and in the North College Avenue Existing Conditions Study, dated September 29, 2004, a copy of which is attached hereto as Appendix `B" the City Council, by Resolution 2004-118, made a finding that the Renewal Area was "blighted" as defined by the Urban Renewal Law, by the existence of the following ten factors: ■ slum, deteriorated, or deteriorating structures; ■ predominance of defective or inadequate street layout; ■ faulty lot layout in relation to size, adequacy, accessibility, or usefulness; ■ unsanitary or unsafe conditions; ■ deterioration of site or other improvements; • unusual topography or inadequate public improvements or utilities ■ the existence of conditions that endanger life or property by fire or other causes; ■ buildings that are unsafe or unhealthy for persons to live or work in because of building code violations, dilapidation, deterioration, defective design, physical construction, or faulty or inadequate facilities; ■ environmental contamination of buildings or property; ■ the existence of health, safety, or welfare factors requiring high levels of municipal services or substantial physical underutilization or vacancy of sites,buildings, or other improvements The City Council also found that these factors, taken together, substantially impair the sound growth of the City, constitute an economic and social liability, and are a menace to the public heath, safety and welfare of the community. Based on evidence of the"blighted" factors, the Renewal Area is appropriate for authorized activities of the Authority pursuant to the Urban Renewal Law. Colorado's Urban Renewal Law requires that City Council find the presence of certain factors in an area proposed for designation as an Urban Renewal Plan area, prior to adoption of a Plan. Initial reconnaissance of the Downtown area has been conducted, and discussions have been held with City Departments that have extensive experience with conditions in the area. Based on this preliminary investigation, a number of factors are evident in the proposed Plan area: ■ slum, deteriorated, or deteriorating structures; ■ unsanitary or unsafe conditions; ■ deterioration of site or other improvements; ■ unusual topography or inadequate public improvements or utilities; ■ Defective or unusual conditions of title rendering the title nonmarketable; ■ buildings that are unsafe or unhealthy for persons to live or work in because of building code violations, dilapidation, deterioration, defective design, physical construction, or faulty or inadequate facilities; ■ the existence of health, safety, or welfare factors requiring high levels of municipal services or substantial physical underutilization or vacancy of sites, buildings, or other improvements This Plan reflects a finding by City Council that these factors, taken together, substantially impair the sound growth of the City, constitute an economic and social liability, and are a menace to the public heath, safety and welfare of the community. Based on evidence of the "blight" factors, the Downtown Urban Renewal Plan Area is appropriate for authorized activities of the Authority pursuant to the Urban Renewal Law. North College Avenue Urban Renewal Plan 5 3. Plan Objectives The overall objective of this Plan is to remedy blight and prevent the spread of blight by assisting implementation of the relevant provisions contained in the following documents: • North College Avenue Corridor Plan ■ North College Avenue Access Management Plan ■ City of Fort Collins Master Street Plan ■ Fort Collins Inf:ll Infrastructure Report ■ City Plan (The City of Fort Collins Comprehensive Plan) • City of Fort Collins Master Transportation Plan ■ Dry Creek Drainage Basin Master Plan To do this, this Plan is intended to stimulate private sector development in and around the Renewal Area. A combination of private investment, Authority financing, and public investment will assist progress toward the following additional objectives: ■ To facilitate redevelopment and new development by private enterprise through cooperation among developers and public agencies to plan, design, and build needed improvements ■ To address and remedy conditions in the area that impair or arrest the sound growth of the city ■ To implement the Comprehensive Plan and its related elements ■ To redevelop and rehabilitate the area in a manner which is compatible with and complementary to unique circumstances in the area ■ To effectively utilize undeveloped and underdeveloped land ■ To improve pedestrian,bicycle, and vehicular circulation and safety ■ To ultimately contribute to increased revenues for all taxing entities ■ To encourage the voluntary rehabilitation of buildings, improvements and conditions • To facilitate the enforcement of the laws and regulations applicable to the Renewal Area ■ To watch for market and/or project opportunities to eliminate blight, and when such opportunities exist, to take action within the financial, legal and political limits of the Authority to acquire land, demolish and remove structures, provide relocation benefits, and pursue redevelopment, improvement and rehabilitation projects. 4. Renewal Activities To support progress toward the objectives, the Authority may undertake any of the following renewal activities, as deemed appropriate for the elimination or prevention of blight factors within the renewal area, pursuant to the Urban Renewal Law: a. Public Improvements. The Authority may cause, finance or facilitate the design, installation, construction and reconstruction of public improvements in the Renewal Area. In order to promote the effective utilization of undeveloped and underdeveloped land in the Renewal Area, the Authority may, among other things, enter into financial or other agreements with the City of Fort Collins to provide the City with financial or other support in order to encourage or cause the North College Avenue Urban Renewal Plan 6 City to invest funds for the improvement of storm drainage and street conditions and deficiencies in the Renewal Area. b. Purchase of Property. In the event that the Authority finds it necessary to purchase any real property for an urban renewal project to remedy blight factors pursuant to the Urban Renewal Law and this Plan, the Authority may do so by any legal means available, including the exercise of the power of eminent domain, pursuant to the Urban Renewal Law. If the power of eminent domain is to be exercised for the purpose of transfer of property to another private person or entity, the Authority's decision whether to acquire the property through eminent domain shall be guided by the following criteria, with the understanding that these guidelines shall not be construed to constrain the Authority's legal ability to exercise the power of eminent domain: ■ all requirements of the Urban Renewal Law, including eminent domain procedures, have been met; ■ other possible alternatives have been thoroughly considered by the Authority; ■ good faith negotiations by the Authority and/or the project developer have been rejected by the property owner; ■ reasonable efforts have been undertaken to: (a) understand and address the property owner's position and his or her desires for the property and for any existing business on the site, and (b) work with the owner to either include the owner in project planning or purchase the property and relocate the owner in accordance with the Urban Renewal Law on terms and conditions acceptable to the owner. c. Demolition. The Authority may provide for the demolition of existing development and clearance of sites as part of specific projects. d. Participation Agreements. The Authority may enter into participation agreements with property owners or developers in the renewal area to facilitate participation and assistance that the Authority may choose to provide to such owners or developers. These may include provisions regarding project planning, public improvements, financing, design, and any other matters allowed pursuant to the Urban Renewal Law. e. Relocation Assistance. It is not expected that the activities of the Authority will displace any person, family, or business. However, to the extent that in the future the Authority may purchase property causing displacement of any person, family, or business, it shall develop a relocation program to assist any such party in finding another location pursuant to the Urban Renewal Law, and provide relocation benefits consistent with the Urban Renewal Law. There shall be no displacement of any person or business without there being in place a relocation program, which program shall become a part of this Plan when adopted. f. Hiring. The Authority may employ consultants, agents, and employees, permanent and temporary, and it shall determine their qualifications, duties, and compensation. g. Legal Authority. The Authority may also exercise all other powers given to it under the Urban Renewal Law. North College Avenue Urban Renewal Plan 7 5 . Development Standards and Procedures Development within the Renewal Area shall be designed and processed in accordance with the City of Fort Collins Land Use Code and other applicable standards, in the City ' s standard development review procedures . 6 . Conformance URBAN RENEWAL LAW This Plan is in conformity with and subject to the applicable statutory requirements of the Urban Renewal Law. CITY PLAN The City ' s adopted Comprehensive Plan, known as City Plan, describes desirable land use and transportation patterns, with goals and policies for those topics along with community appearance and design, the environment, open lands, housing, the economy, and growth management. In addition, the adopted North College Avenue Corridor Plan is a related Element of City Plan . Briefly summarized, the land use pattern envisioned by these plans for the Renewal Area is a commercial corridor well-integrated with surrounding mixed-use and residential development. The Renewal Area is envisioned to evolve with improved community design and streetscapes, in an interconnected framework of streets and blocks. One of the purposes of this Plan is to implement the vision for the Renewal Area as a commercial corridor evolving to be safer, more attractive, and economically healthy with new mixed-use residential areas nearby tied directly to the heart of the corridor along a proposed realignment of Vine Drive. . This Plan is intended to provide mechanisms to facilitate implementation of City Plan, and therefore it is in direct conformance with City Plan . The following excerpts from City Plan highlight the linkage between City Plan and this Urban Renewal Plan. These are representative excerpts, and not an all-inclusive listing of relevant statements : ■ PRINCIPLE GM-8 : The City will promote compatible infill and redevelopment in areas within the Growth Management Area boundary. _SEE FIGURE GM- 8 . ■ Policy GM-8. 1 Targeted Redevelopment/Infill. Redevelopment and infill development will be encouraged in targeted locations . The purpose of these areas is to channel growth where it will be beneficial and can best improve access to jobs, housing and services with fewer and shorter auto trips . These targeted areas are parts of the city where general agreement exists that development or redevelopment is beneficial. A major goal is to increase economic activity in the area to benefit existing residents and businesses and, where necessary, provide the stimulus to redevelop . These areas should be defined from City Plan, Subarea Plans, Zoning and locational criteria such as : a. Underutilized land North College Avenue Urban Renewal Plan 8 b. Areas already undergoing positive change, which is expected to continue C. Areas where infrastructure capacity exists d. Areas where public investment is warranted from a policy perspective e. Areas with special opportunities, such as where major public or private investment is already planned f. Transportation opportunities: • Along travel corridors • Along enhanced travel corridors ■ Policy GM-8.4 Remedy Infrastructure Deficiencies. The City will consider opportunities to selectively correct infrastructure deficiencies in targeted areas, such as storm drainage and streets, so that infill development or redevelopment does not pay an infrastructure "penalty" to remedy past problems in existing developed areas. ■ Policy GM-8.5 Public Investment. The City will consider opportunities, and the costs and benefits for targeted public investment in order to encourage redevelopment and infill development in appropriate locations. ■ Policy ECON-1.5 Maintain and Expand City Revenue Base. The City will ensure that commercial uses that generate the sales and use tax revenues which support the City's financial base are maintained and expanded. The City will also explore other options to expand and diversify its revenue base, including targeted annexations of existing commercial corridors, such as the Mulberry Corridor, as well as revenue sharing agreements with other communities. a. The City will assist in identifying and preserving key undeveloped parcels in appropriate locations for additional commercial activity. b. The City will seek to strengthen existing commercial districts, such as the Downtown, North College, Campus West, and the Foothills Mall. C. The City will seek to maintain and enhance its attractiveness as a place to do business in order to maintain its share of the region's sales and use tax base. 7. Project Financing Specific projects may be financed in whole or in part by the Authority, under the tax increment financing (TIF) provisions of CRS § 31-25-107(9)(a) of the Urban Renewal Law, or by any other available source of financing authorized to be undertaken by the Authority pursuant to CRS § 31-25-105 of the Urban Renewal Law. THE AUTHORITY IS AUTHORIZED TO: (A) FINANCE URBAN RENEWAL PROJECTS WITHIN THE RENEWAL AREA WITH REVENUES FROM PROPERTY TAX INCREMENTS, SALES TAX INCREMENTS, INTEREST INCOME, FEDERAL LOANS OR GRANTS, AGREEMENTS WITH PUBLIC, QUASI-PUBLIC OR PRIVATE PARTIES AND ENTITIES, LOANS OR ADVANCES FROM ANY OTHER AVAILABLE SOURCE, AND ANY OTHER AVAILABLE SOURCES OF REVENUE; (B) ISSUE BONDS AND INCUR OTHER OBLIGATIONS CONTEMPLATED BY THE URBAN RENEWAL LAW IN AN AMOUNT SUFFICIENT TO FINANCE ALL OR ANY PART OF A PROJECT WITHIN THE RENEWAL AREA; AND (C) BORROW FUNDS AND CREATE INDEBTEDNESS IN North College Avenue Urban Renewal Plan 9 ANY AUTHORIZED FORM IN CARRYING OUT THIS PLAN. ANY PRINCIPAL AND INTEREST ON SUCH INDEBTEDNESS MAY BE PAID FROM PROPERTY TAX INCREMENTS, SALES TAX INCREMENTS OR ANY OTHER FUNDS, REVENUES, ASSETS OR PROPERTIES LEGALLY AVAILABLE TO THE AUTHORITY. SUCH METHODS MAY BE COMBINED TO FINANCE ALL OR PART OF THE PLAN ACTIVITIESPROPERTY TAX INCREMENT A fund for financing projects may be accrued and used by the Authority under the property tax allocation financing provisions of the Urban Renewal Law. Under this method, property taxes levied after the effective date of the approval of this Plan upon taxable property in the Renewal Area each year by or for the benefit of any public body shall be divided for a period not to exceed twenty-five (25) years after the effective date of the adoption of the tax allocation provision, as follows: Base Amount-That portion of the taxes which are produced by the levy at the rate fixed each year by or for such public body upon the valuation for assessment of taxable property in the Renewal Area last certified prior to the effective date of approval of the Plan or, as to an area later added to the Renewal Area, the effective date of the modification of the Plan, shall be paid into the funds of each such public body as are all other taxes collected by or for said public body. Increment amount - That portion of said property taxes in excess of such base amount shall be allocated to and, when collected, paid into a special fund of the Authority to pay the principal of, the interest on, and any premiums due in connection with the bonds of, loans or advances to, or indebtedness incurred by (whether funded, refunded, assumed or otherwise) the Authority for financing or refinancing, in whole or in part, a specific project. Such increment amount shall also be used to pay for the Authority's financial obligations incurred in the implementation of this Plan. Unless and until the total valuation for assessment of the taxable property in the Renewal Area exceeds the base valuation for assessment of the taxable property in the Renewal Area, all of the taxes levied upon taxable property in the Renewal Area shall be paid in to the funds of the respective public bodies. In the event that there is a general reassessment of taxable property valuations in Larimer County, which are subject to division of valuation for assessment between base and increment, as provided above, the portions of valuations for assessment to be allocated as provided above shall be proportionately adjusted in accordance with such reassessment. Note that at the time of this Plan adoption, such a general reassessment occurs every two years, in the odd-numbered years. When such bonds, loans, advances, indebtedness, and financial obligations, including interest thereon and any premiums due in connection therewith, have been paid, all taxes upon the taxable property in the Renewal Area shall be paid into the funds of the respective public bodies. SALES TAX INCREMENT The project may also be financed by the Authority under the sales tax allocation financing provisions of the Urban Renewal law. The act allows that upon the adoption or amendment of an Urban Renewal Plan, sales taxes flowing to the City may be "frozen" at their current level. The current level is established based on the previous twelve months prior to the adoption of this Plan. Thereafter, the City can continue to receive this fixed sales tax revenue. The Urban Renewal Authority thereafter may receive all, or an agreed upon portion of the additional sales taxes (the increment) which are generated above the base. The Authority may use these incremental revenues to finance the issuance of bonds, North College Avenue Urban Renewal Plan 10 reimburse developers for public improvement costs, reimburse the City for public improvement costs and pay off financial obligations and other debts incurred in the administration of the Urban Renewal Plan. This increment is not an additional sales tax, but rather is a portion of the established tax collected by the City, and the sales tax increment resulting from redevelopment efforts and activities contemplated in this Plan. TAX INCREMENT REIMBURSEMENT Tax increment revenues may be used to reimburse the City and/or a developer for costs incurred for improvements related to a project to pay the debt incurred by the Authority with such entities for urban renewal activities and purposes. Tax incremental revenues may also be used to pay bonded indebtedness, financial obligations and debts of the Authority related to urban renewal activities under this Plan. 8. Plan Advisory Group To help tailor implementation of this Plan to unique circumstances in the area, a citizen advisory group shall be formed with strong representation of owners in the North College Corridor area to render advice to the URA Board of Commissioners (Board). Furthermore, to ensure effective communication, this Plan recommends that the group include one or two members from City Council and a member from the Planning and Zoning Board. The intent of this Plan is for URA Board of Commissioners to consult with the Advisory Group on all significant actions and decisions of the Authority regarding this Plan. 9. Modifications to the Plan This Plan may be modified pursuant to requirements and procedures set forth in CRS §31-25-107 of the Urban Renewal Law governing such modifications. 10. Reasonable Variations The Board shall have the ability to approve reasonable variations (as determined by the Board) from the strict application of these Plan provisions, so long as such variations reasonably accommodate the intent and purpose of this Plan and the Urban Renewal Law. Plan provisions may be altered by market conditions, redevelopment opportunities and/or the needs of the community affected by the Plan. North College Avenue Urban Renewal Plan Appendix A - Legal Description DESCRIPTION OF THE BOUNDARY OF THE NORTH COLLEGE URBAN RENEWAL PLAN AREA North College Avenue Urban Renewal Plan 12