HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/03/2009 - SECOND READING OF ORDINANCE NO. 108, 2009, AMENDIN DATE: November 3, 2009 AGENDA ITEM SUM ARY
STAFF: Timothy Wilder FORT COLLINSCO NCIL
Second Reading of Ordinance No. 108, 2009, Amending Chapter 14 of the City Code Relating to the Landmark
Rehabilitation Loan Program.
EXECUTIVE SUMMARY
This Ordinance, unanimously adopted on First Reading on October 20, 2009, amends the Landmark Rehabilitation
Loan Program to increase the loan funding amounts from a maximum of$5,000 to a maximum of$7,500. It also
removes provisions related to the application review schedule to allow for a more flexible, semi-annual competitive
application review process.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on Second Reading.
ATTACHMENTS
1. Copy of First Reading Agenda Item Summary-October 20, 2009.
(w/o original attachments)
ATTACHMENT 1
ITEM NUMBER: 17
AGENDA ITEM SUMMARY DATE: October 20, 2009
FORT COLLINS CITY COUNCIL STAFF: Timothy Wilder
SUBJECT
First Reading of Ordinance No. l:081;�2009;vAmending;Chapter 14-of the City Code Relating to the
Landmark Rehabilitation Loanrogram
JIL y
RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
The Landmark Preservation Commission recommended adoption of the Ordinance on September
23, 2009.
FINANCIAL IMPACT nPV
There is no financial impact from this Ordinance. The Landmark Rehabilitation Loan Program is
funded through the General Fund as part of Budgeting for Outcomes.
EXECUTIVE SUMMARY
This Ordinance amends the Landmark Rehabilitation Loan Program to increase the loan funding
amounts from a maximum of MORO to a.,m xi'murn of�$-7,500. It also removes provisions related
to the application review schedule f ore exible�semi-annual competitive application
review process.
BACKGROUND
The purpose of the Landmark Rehabilitation Loan Program is to encourage designation of historic
properties and to provide assistance to owners in need of rehabilitation work to their structures.
Loan funds can be used for exterior rehabilitation work meeting the Secretary of the Interior
Standards for Rehabilitation. Loans are z� 'rest amend must be re upon sale of the property.
Another goal of the program is to become self-sufficient with enough funds being repaid into the
program to support new project, s. �I
The Landmark Rehabilitation Loan Program has provided over$200,000 to qualified projects since
2000, leveraging over$550,000 in private funds, for a ratio of nearly 2-1/2 private funds to public
October 20, 2009 -2- Item No. 17
funds. Forty-three projects have been completed. Typical projects include porch improvements,
foundation repair, repair of siding and trim,restoration of windows, tuckpointing of chimneys,and
re-roofing of homes with historically appropriate materials.
Staff recommends two changes to the Landmark Rehabilitation Loan Program. The first would
increase the maximum loan amount to $7,500. Currently, City Code limits the maximum loan
amount to $5,000. The reason for this change is to accommodate the rising costs of rehabilitation
work and to provide more flexibility in the types of projects paid through the program. Porch
restoration, which can cost well over $15,000, is a common and very visible project funded by the
City's historic loans. Not all p rq je is will_ eek the xih in`m- a\mGunt, and applicants would still be
responsible for matching the loan, , fundmg` amount. iTIhOmcreaseww ill not change the annual budget
allocation.
In addition, staff is recommending that the City Code be amended to remove a section dealing with
application deadline and review dates. Staff is implementing a semi-annual application review
process in 2010 to replace the annual process currently in place. This change is part of more
comprehensive review procedures that will require applicants to begin work on their projects within
six months of approval.
The issue that these changes address is the fact that many projects are slow to be completed or not
completed at all. The completionarate of approved projects-is only-77%. Many applicants do not
start on their projects until well after they have,received approval and some are forced to seek
extensions to the one-year deadline. Others decide ffot o accept the loan award sometime after the
approval. As a result,other rehabilitation projects that could have used the loan funding are delayed
until the annual review cycle begins again.
As part of the powers granted to the City Manager for promulgating rules and regulations for the
efficient administration of the program,staff will set up a semi-annual competitive funding process.
The first cycle will occur as it does now(January—March). The second cycle will occur later in the
year(early fall)depending on the availability of loan funds. This would allow greater flexibility in
awarding qualified rehabilitation projects with unspent loan funds.
77-
The Landmark Preservation Co�ion hel6 h nI Jg on therecommended changes to the
program on September,23; 2009. No public comments were received. The LPC recommended
approval of the suggested changes
th a,6�0,voteji Ji
ATTACHMENTS
1. Landmark Preservation Commission minutes, September 23, 2009
ORDINANCE NO. 108, 2009
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING CHAPTER 14 OF THE CODE OF THE CITY
OF FORT COLLINS RELATING TO THE
LANDMARK REHABILITATION LOAN PROGRAM
WHEREAS, Chapter 14 of the City Code contains provisions pertaining to the Landmark
Rehabilitation Loan program (the "Program"); and
WHEREAS, due to the rising-cost of rehabilitation construction projects, City staff has
recommended to the Council that the maximum loan amount for landmark rehabilitation loans be
.changed from $5,000 to $7,500; and
WHEREAS, staff has also proposed that the City Code be amended to repeal Section 14-84,
which currently provides for an annual process for the administration of loans, since a semi-annual
application review process is recommended for the year 2010 and beyond and Section 14-82 already
authorizes the City Manager to promulgate rules for the efficient administration of the Program;and
WHEREAS,the Landmark Preservation Commission has recommended that the City Council
approve the proposed changes; and
WHEREAS, the City Council has determined that the proposed changes are in the best
interests of the City.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1. That Section 14-82 of the Code of the City of Fort Collins is hereby amended
to read as follows:
Sec. 14-82. Establishment; funding.
The City Manager shall administer the program for awarding zero-interest loans
for the rehabilitation of Fort Collins landmark structures and/or contributing
structures in Fort Collins landmark districts. The City Manager may promulgate
procedural rules and regulations for the efficient administration of the program. No
such loan shall exceed the sum of seven thousand five hundred dollars ($7,500.)
unless the City Council, by ordinance or resolution, authorizes a larger loan. All
loans shall be funded solely from those funds held by the City for financial support
of the program in the General Fund, and all loans shall be expressly contingent upon
the availability of sufficient funds to support the loan. Loan recipients shall, as a
condition of obtaining the loan, agree to repay the loan in full upon sale or transfer
of the property. All loan repayments shall be returned to the landmark rehabilitation
loan program.
Section 2. That Section 14-84 of the Code of the City of Fort Collins is hereby deleted
in its entirety:
Introduced, considered favorably on first reading, and ordered published this 20th day of
October, A.D. 2009, and to be presented for final passage on thth a),of November, A.D. 2009.
May
ATTEST:
City Clerk
Passed and adopted on final reading on the 3rd day of November, A.D. 2009.
Mayor
ATTEST:
City Clerk