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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 05/15/2012 - SECOND READING OF ORDINANCE NO. 036, 2012, APPROPRDATE: May 15, 2012 STAFF: Karen McWilliams AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 7 SUBJECT Second Reading of Ordinance No. 036, 2012, Appropriating Additional Unanticipated Grant Revenue in the General Fund for the Exterior Preservation and Reconstruction of the Avery Building at the Intersection of College and Mountain Avenues. EXECUTIVE SUMMARY Unexpected costs, including higher bid prices and additional work requested by the owner, have resulted in the Avery Building restoration and renovation project costing more than originally provided for. The original cost of $430,270 was funded by a State Historic Fund grant for $215,135, matched by an equal amount provided by the property owner, Avery Building, LLC. This Ordinance, unanimously adopted on First Reading on May 1, 2012, appropriates additional revenue in the amount of $220,000 provided by the property owner to the City to cover the additional costs. The award-winning project is nearing completion, and is expected to be finished at the end of May 2012. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. Copy of First Reading Agenda Item Summary - May 1, 2012 (w/o attachments) C O P Y C O P Y C O P Y C O P Y DATE: May 1, 2012 STAFF: Karen McWilliams AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 9 SUBJECT First Reading of Ordinance No. 036, 2012, Appropriating Additional Unanticipated Grant Revenue in the General Fund for the Exterior Preservation and Reconstruction of the Avery Building at the Intersection of College and Mountain Avenues. EXECUTIVE SUMMARY Unexpected costs, including higher bid prices and additional work requested by the owner, have resulted in the Avery Building restoration and renovation project costing more than originally provided for. The original cost of $430,270 was funded by a State Historic Fund grant for $215,135, matched by an equal amount provided by the property owner, Avery Building, LLC. The property owner has now provided the City with additional revenue in the amount of $220,000 to cover the additional costs. The award-winning project is nearing completion, and is expected to be finished at the end of May 2012. BACKGROUND / DISCUSSION In February 2011, the City of Fort Collins received a State Historic Fund grant for the restoration and reconstruction of the Avery Building, located at the intersection of College and Mountain Avenues. The project is addressing the exterior restoration and rehabilitation of the prominent red sandstone building, including brick and stone masonry restoration, rehabilitation of the original wood windows, and reconstruction of the College Avenue storefronts. The City agreed to sponsor the grant and manage the funds, with staff time being paid for through the grant. Grant and matching funds totaling $430,270 were appropriated by Ordinance No. 043, 2011. The property owner, Avery Building, LLC, has now provided the City with additional revenue in the amount of $220,000 to cover additional costs, necessitating this appropriation ordinance. FINANCIAL / ECONOMIC IMPACTS The City will only be responsible for administering the grant/cash match funds - not any monetary contribution. Grant management services have been provided by Community Development and Neighborhood Services (CDNS) staff. The Avery Building exterior preservation and reconstruction has had positive financial effects on the local economy. The project has generated sales tax revenue from materials and services purchased locally, and due to the property’s higher assessed value, will increase property taxes. Studies by Clarion Associates of Colorado, LLC, show that for each $1 in grant funds, there is an economic return of $6. ENVIRONMENTAL IMPACTS The restoration and rehabilitation of the Avery Block supports the City’s goal of sustainability. As with all historic preservation projects, this project maximizes the use of existing materials and infrastructure, and reduces waste in landfills from demolition costs. Historic buildings were traditionally designed to be energy efficient, with many sustainable features that respond to climate and site. When effectively restored and reused, these features bring about substantial energy savings. Additionally, the Avery Building exterior preservation and reconstruction project will preserve an important and interesting aspect of Fort Collins history. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. ORDINANCE NO. 036, 2012 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING ADDITIONAL UNANTICIPATED GRANT REVENUE IN THE GENERAL FUND FOR THE EXTERIOR PRESERVATION AND RECONSTRUCTION OF THE AVERY BUILDING AT THE INTERSECTION OF COLLEGE AND MOUNTAIN AVENUES WHEREAS, the City has been awarded a grant in the amount of $220,000 from the Colorado Historical Society State Historical Fund program; and WHEREAS, the grant will fund the Avery Building preservation and reconstruction project (the “Project”) that includes the exterior restoration and rehabilitation of the original brick, stone masonry, wood, windows, and storefronts along College Avenue; and WHEREAS, the Project has been an ongoing, high-visibility project that has provided both direct and indirect economic benefits to the community; and WHEREAS, the City’s Community Development and Neighborhood Services staff will be responsible for administering the grant/cash match funds on behalf of the property owner but there is no financial obligation by the City; and WHEREAS, Article V, Section 9, of the City Charter 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 State Historical Fund grant funds 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; and NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that there is hereby appropriated from unanticipated grant revenue in the General Fund the sum of TWO HUNDRED TWENTY THOUSAND DOLLARS ($220,000) for expenditure in the General Fund for the exterior preservation and reconstructions of the Avery Building. Introduced, considered favorably on first reading, and ordered published this 1st day of May, A.D. 2012, and to be presented for final passage on the 15th day of May, A.D. 2012. _________________________________ Mayor ATTEST: _____________________________ Interim City Clerk Passed and adopted on final reading on the 15th day of May, A.D. 2012. _________________________________ Mayor ATTEST: _____________________________ Interim City Clerk