HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 09/04/2012 - ITEMS RELATING TO THE 2012 DOWNTOWN DEVELOPMENT AUDATE: September 4, 2012
STAFF: Matt Robenalt, Kathy Cardona
Mike Beckstead
AGENDA ITEM SUMMARY
FORT COLLINS CITY COUNCIL 30
SUBJECT
Items Relating to the 2012 Downtown Development Authority-Related Financing Activities.
A. Resolution 2012-081 Approving an Intergovernmental Agreement Between the City of Fort Collins and the Fort
Collins Downtown Development Authority Governing the Use of a Line of Credit.
B. First Reading of Ordinance No. 089, 2012, Authorizing the Establishment of a Revolving Line of Credit to be
Paid Solely with Downtown Development Authority Tax Increment Funds for a Six Year Period in the Amount
of up to One Million Dollars Annually to Finance Downtown Development Authority Projects and Programs
in Accordance with the Downtown Development Authority Plan of Development and Approving Related
Documents.
C. Resolution 2012-082 Approving an Intergovernmental Agreement Between the City of Fort Collins and the Fort
Collins Downtown Development Authority Regarding Funding of the Museum of Discovery Project.
D. First Reading of Ordinance No. 090, 2012, Appropriating Prior Year Reserves in the Downtown Development
Authority Fund, Funds Drawn from the 2012 City of Fort Collins Revolving Line of Credit Established to
Finance Downtown Development Authority Projects and Programs and Funds for Debt Service on the
Revolving Line of Credit.
EXECUTIVE SUMMARY
The Board of Directors of the Downtown Development Authority (DDA) believes it would be financially beneficial for
the DDA and the community as a whole for a revolving Line of Credit to be established with a local bank for a six (6)
year period. The Line of Credit will be used to finance DDA projects and programs. Adoption of Resolution 2012-081
will approve the Intergovernmental Agreement (IGA) regarding the establishment of the Line of Credit and governing
the mechanics of its use. Adoption of Ordinance No. 089, 2012 will authorize the establishment of the Line of Credit
and approve execution of the First National Bank documents.
The DDA Board of Directors has approved the sum of three million dollars ($3,000,000) as a grant to the City of Fort
Collins for a portion of the actual costs of construction of the Museum of Discovery Project. Adoption of Resolution
2012-082 will approve the IGA expressing the terms of the grant contribution.
Ordinance No. 090, 2012 will appropriate unanticipated revenue from interest earnings in the amount of $191,032; from
project savings in the amount of $331,113; funds appropriated but not spent of $940,430; funds from the 2010 Bond
Series that were not appropriated in the amount of $500,000; and funds from the 2012 Revolving Line of Credit draw
of up to $1,000,000 for a total appropriation of $2,962,575. The DDA Board has authorized the expenditure on the
various projects and programs. This Ordinance also appropriates the debt service payment on the 2012 Line of Credit
draw.
BACKGROUND / DISCUSSION
A. ESTABLISHMENT OF A LINE OF CREDIT
The Downtown Development Authority was created in 1981 with the purpose, according to State statute, of planning
and implementing projects and programs within the boundaries of the DDA. The DDA and the City adopted a Plan
of Development that specifies the projects and programs the DDA would undertake. The primary means of financing
DDA projects and programs is through the use of property tax increment collected within the DDA boundaries. The
Colorado Revised Statues (C.R.S.) requires that the City incur some form of debt in order to finance such projects and
programs using property tax increment revenues collected to pay the debt service. The City, in order to carry out the
purposes of the State statute and the Plan of Development, on behalf of the DDA, has issued various notes and tax
increment bonds. In 1983 the City issued a tax increment bond anticipation note. The first issuance of tax increment
bonds occurred in 1984 with subsequent issuances through 2010.
September 4, 2012 -2- ITEM 30
The establishment of the Line of Credit with First National Bank meets the requirements of the C.R.S. and the costs
associated with such a line of credit are much lower than would be the case with other types of traditional financing
such as a bond. It is in the best interest of the DDA and the City to reduce financing costs of DDA projects in order
to preserve the maximum amount of property tax increment revenues for DDA projects and activities within its
boundaries.
• Resolution 2012-081 Approving an Intergovernmental Agreement Between the City of Fort Collins and
the Fort Collins Downtown Development Authority Governing the Use of a Line of Credit.
This Resolution authorizes the Mayor to execute the IGA between the City and the DDA governing the use of the line
credit. The two entities desire to enter into the IGA in order to establish a line of credit to finance certain DDA projects.
The IGA defines the recommended required process steps for implementation of the Line of Credit.
• Ordinance No. 089, 2012, Authorizing the Establishment of a Revolving Line of Credit for a Six Year
Period in the Amount of up to One Million Dollars Annually to Finance Downtown Development
Authority Projects and Programs in Accordance with the Downtown Development Authority Plan of
Development and Approving Related Documents.
The Ordinance authorizes the Chief Financial Officer of the City to establish the Line of Credit and to execute the Line
of Credit documents.
B. MUSEUM OF DISCOVERY INTERGOVERNMENTAL AGREEMENT
The DDA Board of Directors has approved the sum of three million dollars ($3,000,000) as a grant to the City for a
portion of the actual costs of construction of the Museum of Discovery project.
• Resolution 2012-082 Approving an Intergovernmental Agreement Between the City of Fort Collins and
the Fort Collins Downtown Development Authority Regarding Funding of the Museum of Discovery
Project.
This Resolution authorizes the Mayor to execute the IGA between the City and the DDA regarding the grant of funds
for the Museum of Discovery. The two entities desire to enter into the IGA in order to establish the annual contribution
amounts and the terms of the agreement.
C. APPROPRIATIONS
In order to maximize the effectiveness of DDA bond proceeds and delay the cost of issuing bonds or borrowing funds
when capital is available, staff monitors sources of funds currently in reserves and available for appropriation. These
funds accumulate as a result of interest earnings and from project savings when actual cost accounting at the end of
the project is lower than the funds committed at the start of a project. Additionally, reserves available for appropriation
may become available when a project committed to by the DDA has been withdrawn by the project owner. The DDA
Board has also chosen to maximize the effectiveness of available funds by discontinuing programs that were not being
utilized.
DDA Board Approvals
Staff has provided summaries for the projects and programs approved for funding by the DDA Board. All approvals
by the DDA Board are made contingent upon City Council appropriation of funds that fulfill the Authority’s commitment
to projects. With the exception of those projects or programs which are purely public in nature, no DDA expenditures
will be made until projects are completed and have met all DDA requirements for reimbursement including, but not
limited to, evidence of a letter of completion or certificate of occupancy from the City. The DDA Board has reviewed,
approved and is recommending to the City Council the total appropriation of $2,962,575 for expenditure on projects
and programs that are in accordance with the DDA Plan of Development, the Downtown Plan and the Downtown
Strategic Plan.
September 4, 2012 -3- ITEM 30
• Ordinance No. 090, 2012, Appropriating Prior Year Reserves in the Downtown Development Authority
Fund, Funds Drawn from the 2012 City of Fort Collins Revolving Line of Credit Established to Finance
Downtown Development Authority Projects and Programs and Funds for Debt Service on the
Revolving Line of Credit.
Interest Earnings, Programs and Project Savings
Over the past year, proceeds from DDA tax increment financing that have not been spent have accumulated interest
earnings in the amount of $191,032 and are available for appropriation. Project savings in the amount of $331,113
and funds not appropriated in the 2010 Bond Series Issuance in the amount of $500,000 need to be appropriated for
expenditure.
Bonds were issued in 2007, 2008 and 2010 and the resulting bond proceeds were appropriated for projects and
programs that subsequently did not require the full use of committed funds resulting in $940,430 in savings. For
example, some facade projects were withdrawn by the owner or the DDA Board discontinued a program. These funds
are now available for reappropriation.
Line of Credit and Debt Service Payment
Establishment of the revolving Line of Credit requires appropriation of the 2012 draw of up to $1,000,000. The debt
service payment for 2012 on the Line of Credit also needs to be appropriated. The DDA debt service fund is projected
to have sufficient revenue to meet the debt service payment for 2012. The Intergovernmental Agreement between
the City of Fort Collins and the DDA for the Line of Credit specifically states that no draw shall be made by the City
on the Line of Credit in excess of available tax increment monies. The DDA Board will annually adopt a resolution
approving its budget and recommend to City Council the monies to be appropriated on the Line of Credit.
FINANCIAL / ECONOMIC IMPACTS
To achieve success in revitalization and redevelopment of the Downtown district, DDA staff and Board operate with
attention to maintaining the fiscal viability and fiduciary stewardship of the organization. During 2012, the DDA staff
and board has focused on finding the lowest cost of capital to support projects and programs so that the maximum
amount of capital can be invested in projects or programs. With the Line of Credit financing tool, the DDA is able to
decrease the cost of capital for its current slate of projects and programs through a significant reduction in expenses
for interest, closing costs and transaction fees. The reduction in the cost of capital expenses ranges from $828,700
to $1,252,200.
The DDA Board has authorized expenditure on the following projects or programs which will be funded with this
appropriation in the amount of $2,962,575:
Maintenance Obligations - $654,000
Old Town Square Second Interim Agreement (2012-2014) -- $192,000
Old Town Square - Safety and Operational Function (2012-2014) -- $30,00
DDA Warehouse - Utilities and Maintenance (2012-2014) -- $60,000
DDA Warehouse - Capital Reserve Fund (e.g., new roof) -- $25,000
Montezuma Fuller Alley, Old Firehouse Alley, West Myrtle Alley Enhancement Project (2012-2014) -- $347,000
Existing Commitments - $1,843,627
2012 payment - Museum of Discovery (Proposed payments scheduled over 6 years) -- $750,000
137 Mathews Street - Tax Increment Facade Project -– up to $13,500
415 S Mason Street - Tax Increment Facade Project -– up to $65,000
Downtown River District Improvements - Jefferson Street Improvements -- $500,000
Lincoln Center Rent and Tech Grant for the 2012-2013 Season -– up to $165,827
River Corridor Improvements - Engines and Energy Conversion Lab – Grant –- up to $77,000
Penny Flats Building #3 - Tax Increment Facade Project –- up to $112,300
Penny Flats Building #4 - Tax Increment Facade Project –- up to $160,000
September 4, 2012 -4- ITEM 30
Other - $464,948
Closing Costs -- estimated at $15,000
Holiday Lights Partnership (2012 Season) -- up to $35,000
Facade Grant Program -- up to $75,000
Project Management Fee -- estimated at $339,948
STAFF RECOMMENDATION
The Downtown Development Authority Board of Directors and staff recommend adoption of the Resolutions and the
Ordinances on First Reading.
BOARD / COMMISSION RECOMMENDATION
Council Finance
On April 16, 2012, DDA staff presented information to the City of Fort Collins Council Audit and Finance Committee
demonstrating the benefit of using a Line of Credit financing method for various projects. Other than a request from
Councilmember Manvel for a timeline of when money would be due on each project, especially the Museum, there
were no objections to moving forward with the Line of Credit financing tool.
DDA Board
At its regular meeting on June 19, 2012, the DDA Board of Directors adopted:
• Resolution 2011-02, recommending to the Fort Collins City Council the establishment of a revolving Line of
Credit with First National Bank of Omaha for a six (6) year period in the amount of up to one million dollars
annually and the approval of the Intergovernmental Agreement governing the Line of Credit; and
• The Intergovernmental Agreement regarding the Grant of Funds for the Museum of Discovery Project; and
• Resolution 2012-03 recommending to the Fort Collins City Council the appropriation of $2,962,575 for
expenditure on projects and programs, all in accordance with the Downtown Development Authority Plan of
Development.
ATTACHMENTS
1. Downtown Development Authority Board Minutes, June 19, 2012
2. Fort Collins Downtown Development Authority Board Resolution 2012-02
3. Fort Collins Downtown Development Authority Board Resolution 2012-03, including a recap of DDA board
minutes relating to the summary and approval of the projects and programs being funded.
4. Downtown Development Authority Boundary Map
5. City of Fort Collins Council Audit & Finance Committee Minutes – April 16, 2012
6. Estimated Annual Distribution and Funding for Projects and Programs for the DDA
7. Cash Flow Statement for the DDA Debt Service Fund as of May 31, 2012
8. Powerpoint presentation
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ATTACHMENT 6
ATTACHMENT 7
1
Purpose of why we are here:
DDA Board and staff are seeking approval and adoption of
the following:
Resolution 2012-081 and an Intergovernmental Agreement (Line
of Credit)
Ordinance No. 089, 2012 (Line of Credit)
Resolution 2012-082 and an Intergovernmental Agreement
(Museum of Discovery Grant)
Ordinance No. 090, 2012 (Appropriations)
1
ATTACHMENT 8
2
2
Why Now?
Projects and programs approved by the DDA Board and consistent
with the mission of the organization have reached maturity and
require funding reimbursement or positioning of funds for future
reimbursement.
3
DDA Financing Strategy
The DDA Board of Directors believes that it would be financially
beneficial for the DDA and the community as a whole for a
revolving Line of Credit to be established with a local bank for a
six (6) year period.
DDA will be able to decrease the cost of capital for its current
slate of projects and programs through a significant reduction in
expenses for interest, closing costs and transaction fees.
The reduction in the cost of capital ranges from $828,700 to
$1,295,200.
3
4
Financing Options
Line of Credit
Traditional bond -
City Purchase
Traditional bond -
Private Placement
ABC
PRINCIPAL $4,500,000 $4,500,000 $4,500,000
INTEREST RATE 3.25% # 3.25% ## 3.27% TE and 4.95% T #
TERM 6 Years 10 Years 10 Years
EST. FEES &/ CLOSING COSTS $18,000 $15,000 $62,500
DEBT RESERVE REQUIRED $0 $225,000 $225,000
TOTAL INTEREST $1,500 ### $833,219 $848,612 - $1,252,246 ####
POTENTIAL SAVINGS: A TO B $828,719
POTENTIAL SAVINGS: A TO C $891,612 - $1,295,246 ####
# Term Sheet received from local bank
## Floor as proposed to Council Finance January 23, 2012
### Minimum finance charge required
#### Range exists because tax status of the Museum is unknown
5
Requested Action:
Establish Line of Credit
•Adoption of Resolution 2012-081 which approves the
Intergovernmental Agreement between the City and the
DDA for the Line of Credit.
•Adoption of Ordinance No. 089, 2012 authorizing the
establishment of the Line of Credit.
4
6
Requested Action:
Museum of Discovery
Intergovernmental Agreement
•Adoption of Resolution 2012-082 which approves the
Intergovernmental Agreement between the City and the
DDA regarding the Museum of Discovery.
7
Requested Action:
Appropriation
Adoption of Ordinance No. 090, 2012 appropriating prior
year reserves ($1,962,575) and funds drawn in 2012 on
the Line of Credit (up to $1,000,000).
Total appropriation = $2,962.575
5
8
In order to maximize the effectiveness of DDA bond proceeds
and delay the cost of issuing bonds or borrowing funds DDA
staff monitors sources of funds currently on hand.
As of May 31, 2012:
•Interest Earnings - $191,032
•Project Savings - $331,113
•Reappropriation - $940,430
•Bonded but not Appropriated - $500,000
Total = $1,962,575 available funds for appropriation
9
PROJECTS/PROGRAMS TO BE FUNDED:
Maintenance Obligations - $654,000
•Old Town Square Second Interim Agreement (2012-2014) - $192,000
•Old Town Square – Safety and Operational Function (2012-2014) - $30,000
•DDA Warehouse – Utilities and Maintenance (2012-2014) - $60,000
•DDA Warehouse – Capital Reserve Fund (e.g., new roof) - $25,000
•MFA, OFA, WMA Enhancement Project (2012-2014) - $347,000
Existing Commitments - $1,843,627
•Downtown River District Improvements - Jefferson Street Improvements - $500,000
•415 S. Mason Street - Tax Increment Façade Project - up to $65,000
•137 Mathews Street - Tax Increment Façade Project - up to $13,500
•Penny Flats Building #3 - Tax Increment Façade Project - up to $112,300
•Penny Flats Building #4 - Tax Increment Façade Project - up to $160,000
•2012 Museum of Discovery Payment - $750,000
•Lincoln Center Rent and Tech Grant for the 2012-2013 Season - up to $165,827
•River Corridor Improvements - EEC Lab - Grant – up to $77,000
6
10
PROJECTS/PROGRAMS TO BE FUNDED (continued):
Other - $464,948
•Closing Costs - estimated at $15,000
•Holiday Lights Partnership (2012 Season) - up to $35,000
•Façade Grant Program - up to $75,000
•Project Management Fee - estimated at $339,948
Total Projects/Programs to be funded = $2,962,575
11
Questions for DDA staff or the City?
RESOLUTION 2012-081
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROVING AN INTERGOVERNMENTAL AGREEMENT BETWEEN THE CITY OF
FORT COLLINS AND THE FORT COLLINS DOWNTOWN DEVELOPMENT
AUTHORITY GOVERNING THE USE OF A LINE OF CREDIT
WHEREAS, on April 21, 1981, the City Council adopted Ordinance No. 046, 1981,
establishing The Fort Collins, Colorado Downtown Development Authority (“DDA”); and
WHEREAS, the DDA has been duly organized in accordance with the Colorado Revised
Statutes 31-25-801, et seq.; and
WHEREAS, the DDA’s Plan of Development was approved by the City Council on
September 8, 1981, and established the purpose of the DDA and the types of projects in which
the DDA would participate; and
WHEREAS, the Board of Directors of the DDA has recommended to the City Council
through the adoption of Resolution 2012-02, the establishment of a revolving line of credit for
a six year period in the amount of One Million Dollars ($1,000,000) annually (“Line of Credit”),
with such other terms and conditions as are set forth in the financing documents, a copy of which
are on file in the office of the City Clerk and available for public inspection (the “LOC
Documents”), to finance DDA projects and programs in accordance with its approved Plan of
Development, the Downtown Plan and the Downtown Strategic Plan; and
WHEREAS, the establishment of the Line of Credit for such purpose would be financially
beneficial for the DDA and the community as a whole; and
WHEREAS, the City is authorized to enter into intergovernmental agreements, such as
a grant agreement, to provide any function, service or facility, under Article II, Section 16 of the
Charter of the City of Fort Collins and Section 29-1-203, C.R.S.; and
WHEREAS, the City desires to enter into an intergovernmental agreement between the
City and the DDA regarding the establishment of the Line of Credit and governing its use in the
form attached hereto and incorporated herein as Exhibit A (the “IGA”).
NOW, THEREFORE, BE IT RESOLVED BY COUNCIL OF THE CITY OF FORT
COLLINS that the Mayor is hereby authorized to execute the IGA on behalf of the City, in
substantially the form contained in Exhibit A attached hereto and incorporated herein by this
reference, subject to such modifications and additions as may be deemed necessary or appropriate
by the City Manager, in consultation with the City Attorney, in order to protect the interests of
the City or to further the purposes of the Agreement or this Resolution.
Passed and adopted at a regular meeting of the Council of the City of Fort Collins
this 4th day of September A.D. 2012.
Mayor
ATTEST:
City Clerk
ORDINANCE NO. 089, 2012
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE ESTABLISHMENT OF A REVOLVING LINE OF CREDIT
TO BE PAID SOLELY WITH DOWNTOWN DEVELOPMENT AUTHORITY
TAX INCREMENT FUNDS FOR A SIX YEAR PERIOD IN THE AMOUNT
OF UP TO ONE MILLION DOLLARS ANNUALLY TO FINANCE DOWNTOWN
DEVELOPMENT AUTHORITY PROJECTS AND PROGRAMS IN ACCORDANCE WITH
THE DOWNTOWN DEVELOPMENT AUTHORITY PLAN OF DEVELOPMENT
AND APPROVING RELATED DOCUMENTS
WHEREAS, on April 21, 1981, the City Council adopted Ordinance No. 046, 1981,
establishing the Fort Collins, Colorado, Downtown Development Authority (“DDA”); and
WHEREAS, the DDA’s Plan of Development was approved by the City Council on
September 8, 1981, and established the purpose of the DDA and the types of projects in which the
DDA would participate; and
WHEREAS, C.R.S. 31-25-807 (3) (a) (II) provides that DDA tax increment funds may only
be used to pay some form of indebtedness incurred by the City; and
WHEREAS, the establishment of a line of credit with a banking institution would qualify
as debt within the meaning of C.R.S. 31-25-807 (3) (a) (II); and
WHEREAS, the Board of Directors of the DDA has recommended to the City Council,
through the adoption of Resolution 2012-02, the establishment of a revolving line of credit to be
paid solely with DDA tax increment funds for a six year period in the amount of One Million
Dollars ($1,000,000) annually (“Line of Credit”), with such other terms and conditions as are set
forth in the financing documents, attached hereto as Exhibits A-1 and A-2,and incorporated herein
by this reference (the “LOC Documents”), to finance DDA projects and programs in accordance
with its approved Plan of Development, the Downtown Plan and the Downtown Strategic Plan; and
WHEREAS, the establishment of the Line of Credit for such purpose would be financially
beneficial for the DDA and the community as a whole; and
WHEREAS, on this date the City Council has also approved Ordinance No. 090, 2012,
appropriating the proceeds of the Line of Credit; along with prior year reserves, to finance DDA
projects and programs in accordance with the DDA Plan of Development and appropriating from
the DDA Debt Service Fund funds for payment of debt service on the Line of Credit in 2012.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS that the City Manager is hereby authorized to establish the Line of Credit as described
in this Ordinance and to execute the LOC Documents therefor in substantially the forms on file in
the office of the City Clerk, together with such additional terms and conditions as the City Manager,
in consultation with the Chief Financial Officer and the City Attorney, deem necessary and
appropriate to protect the interests of the City or effectuate the purpose of this Ordinance.
Introduced, considered favorably on first reading, and ordered published this 4th day
of September, A.D. 2012, and to be presented for final passage on the 18th day of September, A.D.
2012.
_________________________________
Mayor
ATTEST:
_____________________________
City Clerk
Passed and adopted on final reading on the 18th day of September, A.D. 2012.
_________________________________
Mayor
ATTEST:
_____________________________
City Clerk
RESOLUTION 2012-082
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROVING AN INTERGOVERNMENTAL AGREEMENT BETWEEN
THE CITY OF FORT COLLINS AND THE FORT COLLINS DOWNTOWN
DEVELOPMENT AUTHORITY REGARDING FUNDING OF
THE MUSEUM OF DISCOVERY PROJECT
WHEREAS, on April 21, 1981, the City adopted Ordinance No. 046, 1981, establishing
The Fort Collins, Colorado Downtown Development Authority (“DDA”); and
WHEREAS, the DDA has been duly organized in accordance with the Colorado Revised
Statutes 31-25-801, et seq.; and
WHEREAS, the DDA’s Plan of Development was approved by the City Council on
September 8, 1981, and established the purpose of the DDA and the types of projects in which
the DDA would participate; and
WHEREAS, construction of a new museum facility at the northeast corner of Cherry
Street and Mason Street referred to as the Fort Collins Museum/Discovery Center Joint Facility
(the “Museum of Discovery Project”) falls within the purposes and types of projects in the Plan
of Development; and
WHEREAS, the DDA is empowered, pursuant to C.R.S. §31-25-808, to cooperate with
the City, to enter into contracts with the City and to make or receive from the City grants,
contributions and loans; and
WHEREAS, the City is authorized to enter into intergovernmental agreements, such as
a grant agreement, to provide any function, service or facility, under Article II, Section 16 of the
Charter of the City of Fort Collins and Section 29-1-203, C.R.S.; and
WHEREAS, the DDA has approved the reimbursement to the City the sum of Three
Million Dollars ($3,000,000) for a portion of the actual costs of construction of the Museum of
Discovery Project; and
WHEREAS, the City Council desires to enter into an intergovernmental agreement
between the City and the DDA concerning the grant of DDA funds to the City in the form
attached hereto and incorporated herein as Exhibit A (the “IGA”).
NOW, THEREFORE, BE IT RESOLVED BY COUNCIL OF THE CITY OF FORT
COLLINS that the Mayor is hereby authorized to execute the IGA on behalf of the City, in
substantially the form contained in Exhibit A attached hereto and incorporated herein by this
reference, subject to such modifications and additions as may be deemed necessary or appropriate
by the City Manager, in consultation with the City Attorney, in order to protect the interests of
the City or to further the purposes of the Agreement or this Resolution.
Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 4th
day of September A.D. 2012.
Mayor
ATTEST:
City Clerk
ORDINANCE NO. 090, 2012
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROPRIATING PRIOR YEAR RESERVES IN THE DOWNTOWN DEVELOPMENT
AUTHORITY FUND, FUNDS DRAWN FROM THE 2012 CITY OF FORT COLLINS
REVOLVING LINE OF CREDIT ESTABLISHED TO FINANCE DOWNTOWN
DEVELOPMENT AUTHORITY PROJECTS AND PROGRAMS AND FUNDS
FOR DEBT SERVICE ON THE REVOLVING LINE OF CREDIT
WHEREAS, on April 21, 1981, the City Council adopted Ordinance No. 046, 1981,
establishing The Fort Collins, Colorado, Downtown Development Authority (“DDA”); and
WHEREAS, the DDA Plan of Development was approved by the City Council on September
8, 1981, and established the purpose of the DDA and the types of projects in which the DDA would
participate; and
WHEREAS, bond proceeds from 2011 through April 2012 have accrued interest earnings
in the amount of $191,032; and
WHEREAS, DDA staff has identified project savings of $331,113 from bond proceeds
currently in reserves, as well as $940,430 in funds from the 2007, 2008 and 2010 Bond Series which
were appropriated but not spent, and bond proceeds from the 2010 Bond Series currently in reserves
that were not appropriated in the amount of $500,000; and
WHEREAS, on this date the Council has also approved Ordinance No. 089, 2012,
authorizing the establishment of a line of credit to finance DDA projects and programs in
accordance with the DDA Plan of Development and approving the line of credit documents; and
WHEREAS, the establishment of said line of credit and the appropriation of the funds from
the line of credit draws and the appropriation of prior year reserves are necessary to complete the
construction and implementation of certain capital DDA projects; and
WHEREAS, Article V, Section 9, of the City Charter permits the City Council of the City
to make supplemental appropriation, in conjunction with all previous appropriations for that 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, the Board of Directors of the DDA has recommended to the City Council of
the City such appropriation by Resolution 2012-03, passed and adopted at the regular meeting of the
Board of Directors of the DDA on the June 19, 2012.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS, as follows:
Section 1. That there is hereby appropriated for expenditure from the 2012 Line of
Credit draws and reserves in the Downtown Development Authority Fund the sum of TWO
MILLION, NINE HUNDRED SIXTY TWO THOUSAND, FIVE HUNDRED SEVENTY FIVE
DOLLARS ($2,962,575) to be used, as defined in the attached Exhibit A.
Section 2. That there is hereby appropriated for expenditure from the Downtown
Development Authority Debt Service Fund the sum of up to ONE MILLION DOLLARS
($1,000,000) for payment of debt service on the line of credit draws in 2012.
Introduced, considered favorably on first reading, and ordered published this 4th day of
September, A.D. 2012, and to be presented for final passage on the 18th day of September, A.D.
2012.
_________________________________
Mayor
ATTEST:
_____________________________
City Clerk
Passed and adopted on final reading on the 18th day of September, A.D. 2012.
_________________________________
Mayor
ATTEST:
_____________________________
City Clerk
MAINTENANCE OBLIGATIONS OF $654,000
Old Town Square Second Interim Agreement (2012-2014) -- $192,000
Old Town Square - Safety and Operational Function (2012-2014) -- $30,000
DDA Warehouse - Utilities and Maintenance (2012-2014) -- $60,000
DDA Warehouse - Capital Reserve Fund (e.g. new roof) -- $25,000
MFA, OFA, WMA Alley Enhancement Project (2012-2014) -- $347,000
Subtotal $654,000
EXISTING COMMITMENTS OF $1,843,627
2012 payment - Museum of Discovery (Proposed payments scheduled over 6 years) -- $750,000
137 Mathews Street - Tax Increment Façade Project -– up to $13,500
415 S Mason Street - Tax Increment Façade Project -– up to $65,000
Downtown River District Improvements - Jefferson Street Improvements -- $500,000
Lincoln Center Rent and Tech Grant for the 2012-2013 Season -– up to $165,827
River Corridor Improvements - Engines and Energy Conversion Lab – Grant –- up to $77,000
Penny Flats Building #3 - Tax Increment Façade Project –- up to $112,300
Penny Flats Building #4 - Tax Increment Façade Project –- up to $160,000
Subtotal $1,843,627
OTHER OF $464,948
Closing Costs -- estimated at $15,000
Holiday Lights Partnership (2012 Season) -- up to $35,000
Façade Grant Program -- up to $75,000
Project Management Fee -- estimated at $339,948
Subtotal $464,948
TOTAL USES $2,962,575
3
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LEMAY A
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Downtown Development Authority Boundary Map
Legend
Parcels
Downtown Development Authority Boundary 1 inch = 1,320 feet
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Amended: April 1, 2008 Printed: 1/20/2011
ATTACHMENT 4