HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 05/17/2011 - FIRST READING OF ORDINANCE NO. 061, 2011, APPROPRI DATE: May 17, 2011
STAFF: Josh Birks, John Voss
Christina Vincent
First Reading of Ordinance No. 061, 2011, Appropriating Funds from the City's Storm Drainage Fund Reserves for
Transfer to the Fort Collins Urban Renewal Authority for the Purpose of Providing a Loan for the Northeast College
Corridor Outfall Project.
EXECUTIVE SUMMARY
This Ordinance appropriates funds from the City's Storm Drainage Fund Reserves for the purpose of providing a loan
to the Fort Collins Urban Renewal Authority (URA). The proposed loan provides the URA with the necessary funds
to contribute$326,472 to the purchase of the Northeast College Corridor Outfall(NECCO)detention pond (purchase
completed in July,2010). This contribution will cover the shortfall in the land purchase transaction and repay the City's
Stormwater Fund capital projects budget. The loan from the Storm Drainage Fund Reserves will be interest only for
a term of 10 years.
BACKGROUND / DISCUSSION
PROJECT OVERIVEW
The North College Corridor continues to receive considerable development and/or redevelopment interest. The
removal of the Dry Creek floodplain and the establishment of the North College Urban Renewal Plan (NCURP)
eliminated several impediments to development and/or redevelopment. However, the area continues to need
numerous public infrastructure improvements to full address the City's standard for adequate public facilities(APF).
The North College Infrastructure Funding Plan, adopted by City Council on May 4, 2010 (Resolution 2010-023),
identified approximately$74.2 million in required public infrastructure improvements (Attachment 1).
The design of these improvements requires close coordination by City staff to ensure the elements fit together in an
integrated fashion and to provide predictability for nearby development. Since 2006, Engineering,Transportation,and
Utilities staff have been working to design several public infrastructure improvements, including:
• The realignment of Vine Drive (from College Avenue to Lemay Avenue);
• A unified regional stormwater outfall for east of College Avenue and south of Willox Avenue to East Vine
Drive; and
• Two large diameter water pipelines owned by outside agencies.
The planned unified regional stormwater system will provide much needed drainage for stormwater runoff east of North
College Avenue and south of Willox Avenue to East Vine Drive(See Attachment 2—Figure 1). The preliminary design
of the infrastructure was completed in February 2006. Subsequently, stormwater designed the NECCO system to
nearly complete engineering drawings. The infrastructure includes three main components (See Attachment 2 —
Figure 2):
• A unified regional stormwater and water quality system designed to serve the area north and east of the
NECCO regional detention pond;
• A regional detention pond located just west of Redwood Drive; and
• The outfall pipe connecting the pond to the East Vine Diversion channel (located east of Lemay Avenue).
The regional detention pond and the outfall pipe connecting to the East Vine Diversion channel constitute the
infrastructure known as the"backbone" of NECCO. This is the essential infrastructure required to allow the unified
regional stormwater and water quality system to function properly.
May 17, 2011 -2- ITEM 10
NECCO DETENTION POND
The majority of the NECCO detention pond land was purchased with Stormwater Utility funds. The Stormwater Utility
paid for 54.83 percent, or $896,462, of the land to accommodate the existing offsite flows and future water quality
treatment of existing properties, largely located north of Conifer Street. Jon Prouty,the property owner, paid for 22.45
percent,or$322,593,through the purchase of an easement on the land allowing his remaining property to use the land
for temporary retention until the completion of the NECCO outfall pipe connecting the pond to the East Vine Diversion
channel. The remaining 22.72 percent, or$326,472, of the land will aid future development on adjacent properties
(See Table 1).
Table 1 —NECCO Detention Pond Land Purchase Transaction Summary
Purchaser Seller
Purchase Price (Fee Simple) $1,436,939 $0
Drainage Easement $108,588 $0
Retention Easement $0 $322,593
Subtotal $1,545,527 $322,593
Less: Credit from Seller ($322,593) $0
Total Due $1,222,934 $0
Less: Current Stormwater ($896,462)
Funds
Shortfall (URA Loan) $326,472 $0
In addition, the land purchase included an easement for a drainage channel to the north of the detention pond. The
price paid for this easement was for an open channel and a pipe for runoff from the north. All properties planned to
use the pond are required to drain to the NECCO detention pond and will not be allowed to have onsite detention. This
creates a more efficient system of handling stormwater runoff and water quality treatment.
Future development does not receive a reduction,or a reimbursement, if their sites develop with less imperviousness
than assumed in the NECCO design. In addition, all future development will be required to contribute to the cost of
the unified regional stormwater runoff and water quality treatment facility that is NECCO.
FINANCIAL / ECONOMIC IMPACTS
The proposed loan from the Storm Drainage Fund Reserves will provide the URA with the necessary funds to
contribute$326,472 to the purchase of the NECCO detention pond. This contribution will cover the shortfall in the land
purchase transaction (as shown in Table 1). The loan from the Storm Drainage Fund Reserves (Attachment 3)will
be interest only for a term of 10 years. The estimated return to the Storm Drainage Fund Reserves is approximately
$10,000 annually(based on the 10-Year T-Bill rate of 3.348%from April 26, 2011). The actual return will depend on
the interest rate assigned to the loan. Per City's Investment Policy, the interest rate of on this type of loan must equal
the applicable Treasury Bill rate at the time of authorization. Therefore, the interest rate will be set the day after
approval of the loan by the URA Board. City staff has included the estimated interest cost and principal in projections
of future tax increment revenue and determined the URA has the ability to repay the loan. There is no impact to the
City's General Fund or General Fund reserves.
May 17, 2011 -3- ITEM 10
ENVIRONMENTAL IMPACTS
The NECCO project will provide a much needed stormwater management system for the area east of College Avenue
from Vine Drive north to the City limits. The designed and proposed unified stormwater system will manage
stormwater and water quality on the watershed level. The overall health of the watershed, not the individual sites
should is of most concern to the City's Stormwater Drainage Utility.
As designed, the NECCO project will have the following positive outcomes for the larger watershed:
• A higher quality of water returned to the natural tributaries, as a result of slower release and reduction in
sediments;
• Creation of additional wetlands and natural habitat of a size more conducive to access and use by wildlife;
• Assistance in maintaining downstream channel stability; potentially mitigating an environmental impact
(erosion) from a major storm event.
For a more complete discussion of the environmental benefits of unified regional stormwater systems and NECCO
please read the attached memo from Jon Haukaas, City Water Engineering Field Operations Manager(Attachment
4).
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
BOARD / COMMISSION RECOMMENDATION
The Water Board considered making the loan to the URA for a term of 10 years at its August 19, 2010 meeting and
unanimously recommended that Council approve the Ordinance to appropriate $326,472 from the Storm Drainage
Fund Reserves for the purpose of making a loan to the URA(Attachment 5).
A preliminary presentation of the project and resolution was given to Council Finance Committee on June 13, 2010.
No action was taken. The item was represented to Council Finance Committee on March 22, 2011 (Attachment 6).
No action was taken; however, the group asked for more information regarding the environmental benefits of the
.proposed project. Please see the attached memo from Jon Haukaas, Water Engineering Field Operations Manager
for this information (Attachment 4).
PUBLIC OUTREACH
At its September 2,2010 meeting,the North College Citizen Advisory Group(CAG)voted unanimously to recommend
that the URA Board authorize borrowing$326,472 from Storm Drainage Fund Reserves to fund the acquisition shortfall
for the NECCO regional pond (Attachment 7).
ATTACHMENTS
1. North College Infrastructure Plan, Public Infrastructure Summary Table
2. NECCO Project Context and Overview Maps
3. Loan Agreement and Promissory Note.
4. Memorandum on Environmental Benefits from Jon Haukaas,April 25, 2011(This attachment was requested
during the May 9 Leadership Team meeting)
5. Water Board meeting minutes, August 19, 2010
6. City Council Finance Committee meeting minutes, June 13, 2010 and March 22, 2011
7. North College Citizen Advisory Group meeting minutes, September 2, 2010
8. Estimated NECCO Project Cost Map
Table 1 - Project Summary Table North College Infrastructure Funding Plan Very High Priority ATTACHMENT 1
G13I2010 (a) Priority is based on need for public funding and City objectives.
Advance Planning Department, 221L376 da Benefits and Responsibildes are in order from direct to indimd.
ESTIMATED
PROJECTS PRIORITY (a) COST, 2009 OBJECTIVES MET BENEFITS & RESPONSIBILITIES b POTENTIAL FUNDING SOURCES
IMPROVEMENTS TO EXISTING STREETS
► 1 N College Av - 750' from Hemlock to Conifer, street edges VH $2,700,000 ON, SFT, PED, LOS Area, City, State, Developers TIF, 2015 Citywide CIP, Developers
(remainder post-BOB project)
2 N College Av - 1/2 mile from Vine to Conifer, Medians, East Side Circulators and Overlay M $1 ,600,000 IDN, SFT Area, City, State, Developers Developers, CDOT Programs, TIF, Federal Grants, Mil Levy
(remainder post-BOB project)
3 N College Av - 300' Conifer to Hickory (remainder post-HIES Project) VH $1,550,000 LOS, APF, ECN, ON, PED State, City, Developers, Area TIF, 2015 Citywide CIP, Developers
4 N College Av - Conifer/Hickory intersection realignment of Conifer to meet Hickory L $6,700,000 FIX, APF City, State, Area Future City CIP
5 N College Av - 1/2 mile from Hickory to Willox, interim asphalt path H $840,000 SFT, LOS, FIN, PED Area, City, State 2015 Citywide CIP, Federal Grants, COOT Programs, Mil Levy, TIF
6 N College Av - 1/2 mile Hickory to Willox, permanent sidewalk only VH $2,100,000 SFT, LOS, PED Area, City, State 2015 City CIP, TIF, Federal Grants, COOT Programs, Mil Levy, Developers
jlli 7 N College Av - 1/2 mile Hickory to Willox, street edges minus sidewalk VH $10,850,000 ON, SFT, LOS Area, City, State, Developers 2015 City CIP, TIF, Federal Grants, Mil Levy, Developers
8 N College Av - 1/2 mile from Hickory to Willox, medians and overlay M $1 ,360,000 IDN, SFT, LOS Area, City, State, Developers Future City CIP
9 N College Av - 1/4 mile from Eaton Ditch to Hwy 1 L $3,700,000 IDN, SFT, PED, LOS Area, State, City CDOT Programs, State & Federal Grants, Developers
10 Vine Dr - 1/2 mile from College to Linden M $2,800,000 LOS, IDN Area, City, Developers Developers, TIF (URA & DDA)
11 Willox Ln - 1/2 mile from Union Pacific Railroad to College L $2,760,000 LOS Area, City, Developers Developers
(remainder post-Union Place development)
12 Alley upgrade - parallel east 1/4 mile from Conifer to Bristlecone L $308,000 LOS, FIN Developers, Area, City, State Developers, TIF
NEW STREETS
13 Realigned Vine Or - 118 mile from College to Jerome, M $244,000 ECN, LOS, IDN Developers, Area, City Developers, TIF
interim street connection for abutting development
14 Realigned Vine Or - 1/8 mile from College to Jerome, full Arterial M $3,850,000 ECN, LOS, ON Developers, Area, City Developers, TIF
15 Realigned Vine Or - new concrete intersection at North College Av L $3,816,000 City, State Future City CIP
16 Realigned Vine Or - 3/8 mile from Jerome to Redwood L $7,600,000 APF, ECN Developers, Area, City Developers
17 Redwood St - missing southern segment 600' Cajetan to "Realigned Vine" H $471 ,000 APF, LOS, FIN, ECN Developers, Area, City Developers, TIF
18 Redwood St - missing northern segment 400"'Realigned Vine" to current terminus H $314,000 LOS, APF, FIN, ECN Developers, Area, City Developers, TIF
19 Mason St - parallel west circulator 3/8 mile from Alpine to Hickory L $1 ,380,000 LOS Area, City, State Future City CIP, Developers
20 Mason St - parallel West 112 mile from Hickory to Willox M $2,100,000 ECN, IDN, LEV, LOS Developers, Area, City Developers, TIF, SID
STORM DRAINAGE Part ITIE
21 NECCO - primary "backbone" section from Pond E to Vine Drive VH $6,000,000 APF, ECN Developers SID, Utilities CIP
22 NECCO - redevelopment system (upstream of Pond E) L $4,000,000 APF, ECN Developers SID, Utilities CIP
23 NCDID - west side drainage system L $6,000,000 APF, ECN Developers, Owners SID, Utilities CIP
SEWER LINE
24 Sewer westside - City sewer from Alpine to Poudre Valley Plaza H $1 ,200,000 FIX, APF, LEV Owners Utilifies Maintenance Program
TOTAL COST, 2009 DOLLARS NINE
$74,243,
Key to Acronyms LEV - Leverage, Cost Sharing, or PubliWPrivate Partnership opportunities
APF - Adequate Public Facilities — Solve Obstacles to Development by Meeting Standards LOS - Level Of Service for All Transportation Modes
CIP - Capital Improvements Program, e.g., the current "Building on Basics" (BOB) voter-approved sales tax referendum and City Utilities programs NCDID - Drainage Improvements Design
DDA - Downtown Development Authority NECCO - Northeast College Corridor Outfall
ECN - Support Economic Development PED - Pedestrian & Bike Activity
FIN - Financing Feasibility, Political & Ownership Realities SFT - Safety/Hazard Elimination for All Transportation Modes
FIX - Fixes A Problem in Existing Public Infrastructure SID - Special Improvement District -- Builds infrastructure funded by special assessments on property based on special benefit to the property
IDN - Distinct Identity or Sense of Place, Change Public Perception TIF - Tax Increment Financing
URA - Urban Renewal Authority
ATTACHMENT 2
Figure 1
1. . •v -+._ _ ai. vrq i \ — w .t'h. 4 - �'.•M�.S• _l•.5f.. vfr
,A
,� {• Drainage Area Contributing to
' the NECCO Areaa ,
I I FIf 4..
- ,w,, !� `.. - •.? 1 it i « ". -_,dye ✓ ,{�"„t, l�yC �' Apr•` ,-� ;':
" 1'd ,� `4� 4 �;yJ r 'y '� `. lke .'d? "JAL
, ^ - + a - Q �' ,4f �M 1� ��'.1C1 1 A �. .
T!'. T 4_ 1 . - :, \. fI / � � \ .x rf � �' T1"�...f A• �'�t� ` Y .��Y , 91 19 � ( �� '1•
1WAN1L JCL r ` i�
F
444
If
ppp
SS
y 4
j I lJ "1 l
it • r 4 f. Y l
�
of
that
y r '
j J
VINE 19fk+ ,#S . + « 1 . . � ` E VI
*W -
''� --
`k iK4 ' a
b ���� r.•+ � r '=4 � : ^ �.� .. _ � y ,, of r �' � • 1
._
�U ., ';oo - 4 2,060 " j;�• l p� . � +J13@ — :� FOfI s
Figure 2
1}r_•^. . I .l gqt r :, . ` . 1 .^:-'. 7. -'fit t tr r - ' - 5 yK .. ,r4 �.:^ ' .
i�
^ 4 .14
•�.. '.1�� + t•; •A�_ Olt
. 00 wtt 1p; I.i.. �.. , " Y 6 • ` 1 if�u'C" �1" <'"� k�1 r r1 • f .
.{ � ,. Y*fj ��, �.1 -� j Y •y'}3y. .. ; . '.-':a '?�1
'.'ai . , i� a4''T1.1114�'�^' ' '^&' " �' i�� •�,� � ' Y^., ti' ' S;a. ..m. a ILA .�. .p . ha. y'•4. . � n "- b� qt � � \('•t.`111 �•�" �.. � ... • V. .1 �!. •1?\ �
:r � .�`t Viz '. z�, s � •� �t , Itr"". i , , � •f�.Ha.< *�...• `;�;�..• < � .M .. ! , '! ay; . t �.• 07
#� ,:
4 T . $ NECCO Design Infrastructure
0 It Ad
Lij AA
UJ Ago
W WIL 'rnf+n , r .- - I ' � / �- � i. eA11 _
y♦ � is
'.T•�— T'9 etl • F < 4t �.Y (` 4, Y .a "Iltlll l�111t
"1; +�` r �1E 4F t 1 .
1
All
YIF^ •� �, '..�4t � F w FMR t , . k.� .
i:.' *i a� .l 'L �. \t�>, as `•� : c /t �'. 1 + a ( `'� xl
`1 a i � '1 ' �i yy, gam' , y, t + ,.�
•.�, `:e 't'AV t� '..<-} ! ry s �.r-. / b �'q
r elpMIA -
53t -•-_lf,`r
Al
-.i , a w�. i� • :1 <R� <IY+s ,fj- 'fit . . . I .... ..a'ti ti::n, � _ + �5:. i x ar i t�, #
''- ,,t �` . :'2a �• �.. i" � 7 �' '1 . � :I . w�i; �" ' j Yt '� _ sue-' • t. '�I ' "s -;.s 11 •• tl •.F; � 'u ' ;A p Iryi k •r
.411
AIM
{- , 4t ..g � { AAAAAAAI
1 =1 ,-f + - - - el l" ` i ' •'Y • MIIb ` , ` r . ..
l .d .i `!. J . ; M_ t.^ 1 —r'' .: i 1JL
1'1 iiy>s�y. �i y�:l� / M •tts '�. �� 1
+ '.iA �tAt+.4i ; y, aM_ ,{ � " r'jka•tys>.� '1. e's,.
of
sal L
1�f � -., go itea,
�•
1 .. /(Its �� - _ s � _ 1 :•(�� •
i
goo, lofgl
f N CO f
:
y , " ,�Y. - ` Cc0 Backbone - Pon utlaA
' �ti _
Li
ff,� f';.. i11yS ig
�r
i na i "'tipy� AY/ •f,je_ �or.� lt , a .y,.t.r "' ,�- I
w �, .i _-. 1 _ .r.�� , - _. .=NINE DR �r ---
,Rye, ,• •4 _
I 401P Jill, IL
NMA i r, Lo f rr
Alm
t . a a .. *� � ■ Feet ~ . n
0 �11�1 1 1711 ,'j,p(711 - ,� 'i = 4 p00 .y
ATTACHMENT 3
LOAN AGREEMENT BETWEEN THE CITY OF FORT COLLINS
AND THE FORT COLLINS URBAN RENEWAL AUTHORITY
FOR FUNDING THE
NORTHEAST COLLEGE CORRIDOR OUTFALL PROJECT
THIS LOAN AGREEMENT (the "Agreement") made this day of
2011, by and between the CITY OF FORT COLLINS, COLORADO, a municipal corporation, (the
"City"), and FORT COLLINS URBAN RENEWAL AUTHORITY, a public body corporate and
politic of the State of Colorado, (the 'Borrower").
RECITALS
A. Borrower is an urban renewal authority for the City, created pursuant to
Colorado Revised Statutes Part 1 of Title 31, Article 25, as amended (the "Act").
B. Borrower was created on January 5, 1982 to prevent and eliminate conditions
related to certain "blight factors" in the community. The Act gives the Borrower broad powers
to carry out its statutory mandate. Included are the powers to enter into contracts, borrow or
lend funds and to acquire property, among others. Urban renewal projects may be financed in a
variety of ways and urban renewal authorities are authorized to borrow money, issue bonds,
and accept grants from public or private sources.
C. By Resolution 2004-151, the City Council for the City (the "City Council") found
and declared the area described therein (the "Area") to be a blighted area as defined in the Act,
and appropriate for inclusion in an urban renewal project.
D. By Resolution 2004-152, the City Council made findings and approved the urban
renewal plan (the "Plan") for the North College Avenue Corridor.
E. By the Intergovernmental Agreement approved by City of Fort Collins
Resolution 2006-082, the City may advance funds to the Borrower in support of its activities so
long as any such advance of funds is evidenced in writing in the form of a loan memorialized by
a promissory note, which transaction shall not be valid until first having been approved by both
the City Council and the Board of Directors for the Borrower.
F. Borrower will incur certain costs relating to its partnership with the City
Stormwater Utility to design, install, construct and finance public improvements in the
Northeast College Corridor Outfall (the "Project') which is located in the Area, and has
requested and applied to City for a loan to provide funding for these costs not to exceed Three
Hundred Twenty Six Thousand Four Hundred Seventy Two Dollars ($326,472) and City is
willing to make a loan on the terms and conditions hereinafter set forth (the "Loan').
1
i
G. Tax increment financing for the Project is specifically permitted pursuant to
Section 7 of the Plan.
NOW, THEREFORE, in consideration of the mutual covenants and agreements herein
contained, the parties agree as follows:
Section 1. The Loan. After the effective date of this Agreement(the "Effective
Date"), the adoption of the required resolutions or ordinances by the City and Borrower, and
the execution of a promissory note and other documents as may reasonably be required, the
City will loan the Borrower the sum of Three Hundred Twenty Six Thousand Four Hundred
Seventy Two Dollars ($326,472) from the City's Storm Drainage Fund Reserves (the "Loan").
Section 2. Interest. Interest on the Loan will accrue at a rate equal to %.
Section 3. Payment. Principal and accrued interest will be due and payable by the
Borrower to the City as follows:
The anniversary date of the Effective Date for years 0 through 9 (Interest Only Payment
Term): there will be annual interest only payments.
The anniversary date of the Effective Date for year ten (Balloon Payment): all remaining
interest and principal will be due and payable.
The payment schedule, under which Borrower must make its payments, is in Exhibit A,
attached and incorporated into this Agreement.
Borrower, in its sole discretion, may prepay all or any portion of the Loan at any time and that
prepayment will be without any prepayment penalty. If a prepayment is made, the funds will
go first toward any interest which has accrued and the balance then applied to the reduction of
principal.
Section 4. Tracking. Borrower agrees to maintain a separate payable line-item
within its accounting system to track the Loan.
Section 5. Alternative Financing. The Parties contemplate that at some point in the
future the Borrower will obtain alternative financing (e.g. bond financing) and will diligently
pursue that financing with a goal to reducing the outstanding balance of the Loan.
Section 6. Notice. Any notice required to be delivered in writing will be
accomplished by personal delivery or mailing postage prepaid by the United States Postal
Service, or other commercial carrier to the following addresses:
If to the City
City of Fort Collins
2
Director of Finance
PO Box 580
Fort Collins, CO 80522-0580
If to the Borrower
Fort Collins Urban Renewal Authority
Director of Advance Planning
PO Box 580
Fort Collins, CO 80522-0580.
Section 7. Entire Agreement. This Agreement will be construed according to its fair
meaning, as if prepared by both Parties, and constitutes the entire understanding and
agreement of the Parties related to the matters addressed in this Agreement.
CITY:
CITY OF FORT COLLINS, COLORADO, a
municipal corporation
By:
Karen Weitkunat, Mayor
ATTEST:
By:
Wanda Krajiceck, City Clerk
APPROVED AS TO FORM:
By:
Assistant City Attorney
BORROWER:
FORT COLLINS URBAN RENEWAL
AUTHORITY, a public body corporate and politic
of the State of Colorado.
By:
3
Exhibit A
2011 Storm Drainage Loan to URA
Start Date 30-Jun-11
Amount $326,472.00
Years 10
Interest 3.348%
Payment
Payment# Date Amount Interest Principal Balance
30-Jun-11 326,472.00
1 30-Jun-12 10,930.28 10,930.28 - 326,472.00
2 30-Jun-13 10,930.28 10,930.28 - 326,472.00
3 30-Jun-14 10,930.28 10,930.28 - 326,472.00
4 30-Jun-15 10,930.28 10,930.28 - 326,472.00
5 30-Jun-16 10,930.28 10,930.28 - 326,472.00
6 30-Jun-17 10,930.28 10,930.28 - 326,472.00
7 30-Jun-18 10,930.28 10,930.28 - 326,472.00
8 30-Jun-19 10,930.28 10,930.28 - 326,472.00
9 30-Jun-20 10,930.28 10,930.28 - 326,472.00
10 30-Jun-21 337,402.28 10,930.28 326,472.00 -
435,774.83 109,302.83 326,472.00
" - Start date will be set when loan agreement is authorized.
'"- Rate will be established the day after loan agreement is authorized.
PROMISSORY NOTE
$326,472 2011
FOR VALUE RECEIVED, FORT COLLINS URBAN RENEWAL AUTHORITY, a public body
corporate and politic of the State of Colorado ('Borrower"), promises to pay to the order of THE
CITY OF FORT COLLINS, COLORADO, a municipal corporation ("Lender"), at its office at 300
LaPorte Avenue, Fort Collins, Colorado 80524, in lawful money of the United States of America
the principal amount of Three Hundred Twenty Six Thousand Four Hundred Seventy Two
Dollars ($326,472). This Promissory Note is issued pursuant to the Loan Agreement between
the City of Fort Collins and the Fort Collins Urban Renewal Authority for Funding the
Northeaster College Corridor Outfall Project dated' 2010, between
Borrower and Lender(the "Loan Agreement'). Capitalized terms used herein but not defined
herein have the meanings given such terms in the Loan Agreement. The obligations of
Borrower evidenced by this Promissory Note are payable in accordance with the terms and
conditions of the Loan Agreement.
The rate of interest borne by this Promissory Note is a fixed rate equal to %
per annum ("Interest Rate"). Final payment of all unpaid Principal and accrued interest will be
due and payable on the Maturity Date. The annual interest rate of this Promissory Note is
computed on a 360 day year basis, multiplied by the actual number of days elapsed.
The Loan may be drawn 100% upon execution of the Loan Documents, or in part from
time to time,but not more frequently than monthly.
This Promissory Note shall mature on the tenth anniversary of the Effective Date of the
Loan Agreement. At such time all unpaid principal, interest, default interest, fees and charges
owing under this Note shall be deemed payable in full.
Unless otherwise agreed or required by applicable law, payments will be applied first to
any accrued interest; then to principal; then to any late charges; and then to any unpaid
collection costs.
If Lender refers this Note to an attorney for collection or seeks legal advice following a
default.beyond all cure periods alleged under this Note, or the Lender is the prevailing party in
any action instituted on this Note, or if any other judicial or non-judicial action, suit or
proceeding is instituted by Lender or any future holder of this Note, and an attorney is
employed by Lender to appear in any such action or proceeding, or to reclaim, seek relief from
a judicial or statutory stay, sequester, protect, preserve or enforce Lender's interest in this Note,
the Loan Documents or any other security for this Note (including, but not limited to,
proceedings under federal bankruptcy law or in connection with any state or federal tax lien),
then Borrower promises to pay reasonable attorneys' fees and reasonable costs and expenses
incurred by Lender and/or its attorney in connection with the above-mentioned events. If not
paid within ten (10) days after such fees become due and written demand for payment is made,
such amount shall be due on demand or may be added to the principal, at the Lender's
discretion.
Should any payment or installment hereunder be not paid when the same becomes due
and payable, Borrower recognizes that the Lender will incur extra expenses for both the
administrative cost of handling delinquent payments and the cost of funds incurred by Lender
after such due date as a result of not having received such payment when due. Therefore,
Borrower shall, in such event, without further notice, and without prejudice to the right of
Lender to collect any other amounts provided to be paid herein, including default interest or to
declare a default hereunder, pay to Lender to cover such expenses incurred as a result of any
installment payment due being not received within ten (10) days of its due date, a "late charge"
of five percent(5%) of the amount of such delinquent payment.
Except as otherwise provided herein, the Borrower waives presentment and demand for
payment,notice of acceleration or of maturity, protest and notice of protest and nonpayment,
bringing of suit and diligence in taking any action to collect sums owing hereunder and agrees
that its liability on this Note shall not be affected by any release or change in any security for the
payment of this Note or release of anyone liable hereunder. No extension of time for the
payment of this Note, or any installment or other modification of the terms made by the Lender
with any person now or hereafter liable for the payment of this Note, shall affect the original
liability under this Note of the Borrower, even provided the Borrower is a party to such
agreement.
In no event whatsoever shall the amount paid, or agreed to be paid, to the holder of this
Note for the use, forbearance or retention of the money to be loaned hereunder("Interest")
exceed the maximum amount permissible under applicable law. If the performance or
fulfillment of any provision hereof or of any of the Loan Documents or any agreement between
Borrower and the Lender of this Note shall result in Interest exceeding the limit for interest
prescribed by law, then the amount of such Interest shall be reduced to such limit. If, from any
circumstance whatsoever, the Lender of this Note should receive as Interest, an amount which
would exceed the highest lawful rate, the amount which would be excessive Interest shall be
applied to the reduction of the principal balance owing (or, at the option of the Lender, be paid
over to Borrower) and not to the payment of Interest.
If any provision hereof or any of the Loan Documents shall, for any reason and to any
extent, be invalid or unenforceable, then the remainder of the document or instrument in which
such provision is contained and any of the other Loan Documents shall not be affected thereby
but instead shall be enforceable to the maximum extent permitted by law.
Borrower and Lender hereby knowingly, voluntarily, and intentionally waive any rights
they may have to a trial by jury in respect of any litigation based hereon or arising out of, under
or in connection with this note or any course of conduct, course of dealing, statements (whether
oral or written) or actions of the other party.
- 2 -
This Promissory Note shall be construed in accordance with the laws of the State of
Colorado.
IN WITNESS WHEREOF, Borrower has duly executed this Promissory Note as of the
day and year first above written.
BORROWER:
FORT COLLINS URBAN RENEWAL
AUTHORITY, a public body corporate and politic
of the State of Colorado.
By:
Executive Director
- 3 -
ATTACHMENT 4
City¢¢�� 700 Utilities
®f c•stormwater•wastewater water
F6rt Collins 700 Wood Street
PO Box 580
Fort Collins,CO 80522
970.221.6700
970.221.6619—tax
970.224.6003—TDD
utilities@fcgov.com
7cgov.cornlutt6ties
MEMORANDUM
DATE: April 25, 2011
TO: Mayor and City Councilmembers
THRU: Darin Atteberry, City Manager t'
Brian Janonis, Utilities Executive Director
FROM: Jon Hattkaas, Water Engineering & Field Services Manager
RE: Environmental Benefits of the NECCO Project Regional Detention
Background
The North East College Corridor Outfall (NECCO) project will provide a much needed stormwater
management system for the area east of College Avenue from Vine Drive north to the City limits.
The project includes one regional detention and a `backbone' system of pipes to create the final
outfall for the area. Many of the existing parcels were developed in Latimer County prior to
annexation into the City. The lack of an adequate overall stormwater management plan and system
has been a major obstacle to development in this part of the City. The NECCO plan provides a
regional solution to stormwater drainage needs that is superior to the disconnected on-site
stormwater•management facilities that would have occurred in its absence,
The NECCO project was master planned and the North College Drainage Improvement Design
report was completed by Ayres Associates in February 2006. The design takes into account all
existing conditions including previously constructed water quality features and offsite flows.
Stormwater conveyance, control and water quality facilities for future development are incorporated
into the design.
Watershed-based Stormwater Management
Stormwater is best managed on the watershed level. The overall health of the watershed, not the
individual sites should be of the most concern to us.
Regional stormwater facilities are a common stormwater management technique in higher density or
redevelopment projects that use a watershed-based design to achieve the overarching goal of a
healthy watershed and improved stream health. In this design, stormwater is collected at the
contributing properties and transported via pipes or other conveyance to a larger facility where flow
attenuation and water quality treatment is accomplished.
�rof
t` Collins
Overall watershed health has a direct correlation to water quality in receiving streams. At the same
time, watershed-based stormwater management is often more difficult to implement due to
overlapping regulatory jurisdictions and property rights. Therefore, most regulations focus on the
site level and assume it will scale up to the watershed level. The disadvantage of this approach is
that it fragments the ecological benefits of the remaining habitat and results in inefficient land use.
Regionalization of stormwater control and treatment facilities provides similar benefits to those
obtained from jurisdictional requirements to preserve open space. Preserving large contiguous areas
of absorbent open space is crucial to protecting and enhancing water quality. It does this by slowing
down and treating runoff while in the tributary system before it reaches receiving waters.
Unfortunately, most new developments contain compacted and the dense shallow mat root system
for turf lawns have a higher runoff rate than deep rooted native grasses. Vegetation and design
standards associated with regionally-based stormwater treatment facilities result in increased
filtration and improved water quality.
Regionalization also creates efficiencies in storage of runoff, i.e, a large area can provide more depth
to a ponding facility and therefore greater volume than fragmented parcels providing the same
aggregate surface area. The use of regional stormwater detention facilities typically results in
smaller peak discharges into the tributary stormwater conveyance system. This in turn plays an
important role in maintaining downstream channel stability and minimizing stream degradation.
These larger facilities and the additional volume and surface areas that they provide allow for the
inclusion of wildlife and aquatic habitat areas on a larger scale that can better serve these vital
functions Wetlands created within these regional facilities act as natural filtration systems. Trace
metals that are often present in runoff can be bound to clay soils and remain in the peat beds of the
wetlands instead of entering receiving waters.
Finally, regionalized stormwater management facilities maintained by a dedicated Stormwater
Enterprise group are much more efficient than multiple small sites. Both in the storing and treating
of comparatively large runoff volumes for larger tributary areas and in the economics of the work
needed to clean, maintain, and repair these sites.
Thus, the NECCO project will have the following positive outcomes for the larger watershed:
• A higher quality of water returned to the natural tributaries, as a result of slower release and
reduction in sediments;
• Creation of additional wetlands and natural habitat of a size more conducive to access and
use by wildlife;
• Assistance in maintaining downstream channel stability; potentially mitigating an
environmental impact (erosion) from a major storm event.
2
ATTACHMENT 5
Water Board Meeting
August 19, 2010
„ lwu jiunureo years, he suggests staff may want to participate with FEM o
develop better mapping of the area, regardless of what the Board recommends.
B rd Member Pillard referred to the "willing buyer/willing seller" program. St confirmed it
is st available. A set amount of funding is not reserved for this type of activ' , but staff.
contin s to be interested in participating in it as the level of reserves permi .
Vice Chai rson Balderson noted his concern that we are seeking to c nge the regulations yet
again when t Board had compelling reasons to vote for the change om 0.1-foot rise floodway
to 0.5-foot rise odway in 2007.
Board Member Phela agreed with Vice Chairperson Balders s concern.
Board Member Eccleston ted this is the chance for the and to follow through on what staff
was asked to do, but he also es this as a much bigger cture. He encourages Council to pull in
resources from other departme who could further alyze some aspects of this decision.
Board Member Brown feels it is ris and the p is all incurs costs from putting structures in
the floodplain. There are other pieces the T le Bottom Line to weigh in on.
Chairperson Janett will support the motio ting her understanding that it's a cost to someone
who wants to make the most economic a of it property. When agreeing to allow fill in the
floodplain, the water goes somewhe Ise, and a eighbor who is impacted is not compensated
for the damages. It also impacts in structure suc s bridges and streets,the community's
ability to travel,and safety respo a by fire and polic It's a balancing act for how best to
protect aspects such as life saf and infrastructure.
Vote on the motion by roll all:
Pillard- Aye
Connor—Aye
Eccleston—Aye
Phelan —Nay
Balderson—Na
Janett—Aye
Brown— A
Motio asses with 5 for, 2 against. (The reasons for nay votes by Vice Chairpers Balderson
and and Member Phelan are noted above).
" Board Member Pillard left the meeting at 4:34 p.m.
Northeast College Corridor Outfall (NECCO)Protect Financing
Economic Advisor Josh Birks presented this agenda'item. Mr, Haukaas noted this project is part
of the Stormwater Master Plan for the Stormwater utility, who is funding a part of the project
with the Urban Renewal Authority(URA) funding the other portion. The purpose of the project
is to provide a unified regional stotmwater and water quality system on the east side of College
Avenue north of the Poudre River. As the area east of College continues to develop and
Water Board Minutes 5
August 19, 2010
redevelop, an amount of unmitigated stormwater is anticipated. This project would resolve an
existing Adequate Public Facilities deficiency.
The purchase price is approximately$1.4 million. Every utility has the right to use reserves for
loans on investments at a higher interest rate than it is making at the bank or hold in savings
accounts earning a bank interest rate. The Board is requested to authorize appropriating
$326,472 as a 10-year loan to the URA on an interest-payments-only basis with the principal due
at the end of the loan or paid at points in the life of the loan without penalty for early pre-
payment. The principal would remain available upon request if needed and accessible within
two weeks of request.
The seller is providing some of the land and using the land for his own retention and detention .
stormwater until he can make use of the outfall structure.
Does this project handle all future development or will other parties still have to build their own
ponds? It anticipates a certain level of future development.
Motion: Board Member Brown moved that the Water Board recommends that City
Council appropriate$326,472 for the purpose of making the loan from the Stormwater
reserves to the Urban Renewal Authority for a term of 10 years interest only. Board
Member Phelan seconded.
Vote on the motion: It passed unanimously
011-2012 Budget Update
'ties Executive Director Brian Janonis encouraged Board members to attend a spec' get
sessio r boards and commissions on September 13 at 6:30 p.m. at the Drake r. The
budget is completed, and staff will seek recommendation from the Bo the September
meeting.
Press Release
Water Resources Manager De Bode addressed a Jul Cash for Grass" press release sent
out recently by the Save The Pou oup about the ceps of incentivizing citizens to convert
from irrigated grass to xeriscape landsc It de some comparisons to the cost of storage
between such a conversion compared to the of enlarging Halligan Reservoir. Mr. Bode
provided information to the Board comp g do per acre foot realized by converting to
xeriscaping ($43,560) versus the cos enlarging Ha ' n ($4,600).
Also,Gary Wockner made a ment to Council Tuesday ni about the City of Fort Collins
being the top diverter of er from the Poudre River. A list of t op ten diverters was shared
with the Board.
Committee etin s
At the nt Engineering Committee meeting, members were asked to pilot us f the Triple
Bot Line Analysis(TBLAM) form for the Stormwater program.
Water Board Minutes 6
August 19,2010
ATTACHMENT 6
Finance Administration
City of 215 N.Mason
F6rt Cloth or
'1 970.2 1.
PO Box 580
Fort Collins,CO 80522
970.221.6788
970.221.6782-fax
fcgov.com
Council Audit Et Finance Committee
Minutes
6/13/10
10:30 a.m. - 12:00 p.m.
Council Attendees: Mayor Doug Hutchinson, Mayor Pro Tern Kelly
Ohlson, Ben Manvel
City Staff Attendees: Darin Atteberry, Chuck Seest, John Voss, Kraig
Ecton, Steve Mason, Josh Birks, Ann Turnquist,
DeLynn Coldiron, Steve Dusch, Diane Jones,
Christina Vincent, Heather Shepherd
Others: David May, Chamber of Commerce; Kevin Duggan,
Coloradoan; and John Gallager, Red Oak
Consulting.
Approval of the Minutes from the May 17 2010 M
Ben Manvel moved to a g Hutchinson.seconded the motion.
unanimously.
NECO Proiect Update (Northeast College Corridor Outfall)
Josh Birks stated this topic will be coming forward as an urban renewal item to Council.
Project background:
* provides a unified regional storm water and water quality system.
• resolves existing adequate public facilities deficiency
* total cost of approximately $10 million.
* phased-initial phase=Backbone or regional pond and primary outfall.
* listed as a very high priority in the North College infrastructure funding plan.
Proposal is for the URA to consider lending the $325,000 to purchase the pond today.
Impact to the URA would be:
* incur financing charges of approximately $5,000 annually (based on 10 year treasury bill)
* when future adjacent infill development occurs, the URA will be reimbursed for $325,000
and any financing charges incurred.
Pros Cons
Regional stormwater and water quality - more URA bridges timing gap at approx $5000 cost
efficient use of land. annually
Adjacent parcels have seen significant Reimbursement depends on infill dev. on
development interest adjacent parcels.
Resolves an APF deficiency rated "very high"
Fort of
Doug Hutchinson suggested that it would be beneficial to get a summary of the benefits of
this project to the City's economic health.
Kelly Ohlson said more time is needed to review the data before making an informed
decision. He also asked why there is no mention of environmental factors of this area.
Ben Manvel requested getting more detailed numbers on how much money is coming from
stormwater, etc.
This topic may be revisited at the August Council Finance Committee meeting.
Fee Study Update
Darin Atteberry said the purpose of the study is for the City to ensure we are using ou
resources according to best practices.
John Gallager suggested reviewong section 1.2 in the document prepared for mittee
members, as it is an overall summary.
City Policy: Fees recover 80% of costs.
* 87% in 2007
* 60% in 2008
* 44% in 2009
Building permit and plan review fees.
* valuation based on 2006 IBC
* fees based on 1982 UBC
Planning development review fees
* established in 1993
* updated through 2002 CPI
Over-the-counter permit fees
* City policy: charge reasonable
Kelly Ohlson asked why 1982 i e year that UBC fees are based on. The response was that
about a year ago, this topi s mentioned and investigated, but at that time, it was
determined that is was a good time to raise fees.
Darin Atteberry ask why the City wouldn't have raised fees periodically over time and Mike
Freeman said th terms of the total mix of City fees, Fort Collins had remained
competitive w. other comparable Cities. These fees had been reviewed over the years and
it was a co ous decision not to raise fees, for that reason. Also there is a limit on the
percenta mount the City can actually charge in fees, and if it had been raised several
times ' would have been charging over 100% on fees.
K Ohlson proposed having a schedule for these fee amounts to be reviewed by City Council
very two or three years) and not just staff review.
9ty of
Finance Administration
215 N.Mason
F6rt CoREM5970.2
PO Box 580
Fort Collins,CO 80522
Floor970.221.1.6788
970.221.6782-fax
fcgov.com
Council Audit Et Finance Committee
Minutes
3/22/11
Council Attendees: Mayor Doug Hutchinson, Mayor Pro Tern Kelly
Ohison, Ben Manvel
Staff: Darin Atteberry, John Voss, Ann Turnquist, Mark
Jackson, Delynn Coldiron, Dan Coldiron, Diane
Jones, Steve Dusch, Jon Haukaas
Others:
Approval of the Minutes from the February 2011 Meeting.
Ben Manvel moved to approve the minutes from this meeting, and Kelly Ohlson se ded the
minutes are approved unanimously.
User Fee Study
Original proposal was to recover 80 % of total costs of Devel ent Review center costs
through fees.
It is now being proposed that 100% of cost be fee r ed services.
City staff proposes adjusting the method to calculate the portion of Development
Review Center costs which should b covered through Plan Check and Building
Permit Fees.
City staff recommends th a fee tables for Plan Check and Building Permits be
adjusted so that they r ver 100% of the cost of Fee Related Services. To
accomplish this, st eveloped a new fee table to maintain appropriate relationships
between the co of various permits and activities (plan check, inspection, building
permit, etc. ile generating additional revenue.
This Cit of Fort Collins Fee Table will replace the 1982 UBC Fee Table which
h een in use by the Development Review Center for many years.
�t�. Collins
Governmental average annual increase 1.1%
Enterprise average annual increase 3.7%
Debt Position 2010
• Outstanding debt was $163 million at the end of 2
— Not including capital equipment lease
— Down from 2001 outstanding of illion
• At 11.6%, Governmental debt a is well below policy target of 15% of operational
expenditures
• Each Enterpris d is in compliance with their own debt covenants regarding
revenue age ratio
Darin erry asked John Voss if he foresees and potential banana peels coming in 2011 and
J esponded that in his opinion, the City will be financially stronger this year.
URA - NECCO
Josh Birks and Jon Haukaas presented information and seek the following feedback:
After this meeting, do all members of the CFC feel they have sufficient information on this
topic, and do they approve moving forward with plans to present this to City Council for
consideration again?
Kelly Ohlson asked for more data specifically on the environmental impact of this project. On
the.assumption that this information will be forthcoming, he feels that this topic can be
presented to Council in the near future.
It was decided that this information be sent as a memo in the City Council packets, and staff
members will be in attendance at the Council Meeting to respond to any questions when it's
presented.
ATTACHMENT 7
Fort Collins Urban Renewal Authority
North College Citizen Advisory Group(CAG)
Regular Meeting Minutes
281 N. College Ave.,Conference Rm. A
September 2,2010
7:30am
CAG member attendance:
Don Butler,Grant Sherwood,Bob Brown,Neil McCaffrey,Greg Woods,Brigitte Schmidt(PnZ Liaison and
sustains from voting),Mark Sheeley, Ron Laurtenheiser,Jim Eddy
Not Present:
Dean Hoag(Chair)
Guests:
Mr. Butler—No Public Comment
City Staff: Christina Vincent, Emily Wilson,Josh Birks,Clark Mapes, Ken Waido
I. Call to Order at 7:32a
II. Agenda Item 1:Josh Birks following up on his July NECCO Presentation
• Josh Birks presented in July the North East College Corridor Outfall(NECCO)project.Now at
the point where City Staff is asking the CAG for a recommendation of staffs recommendation(to
support or not support).This motion could help in NECCO moving forward. Birks asks the group
to discuss and make a recommendation.
• Discussion on the implication of this project to secure the major regional pond on the URA: It
would require significant engineering.
• Discussion of Cons: Tax increment financing discussion.
• Question is raised,"Is this the same water board that is causing problems with the floodplain?"
Birks explains this issue is separate from the floodplain.
• Special Improvement District discussion:The Pond is only one piece of infrastructure.
• Discussion on the streets mater plan:There is a URA plan and a North College Infrastructure
Funding Plan to take into consideration.
• Loan amount$326,000 for a 10 year term.
• Question raised on how is the loan repaid: Birks explains how this would happen by letting the
development occur and how the tax increment would be used to pay off the loan.There is also an
option of using tax increment to pay for principal and interest. $460,000 being brought in from the
URA.
MOTION: Ron Laurtenheiser motioned to recommend the NECCO project to the URA Board in the
amount of$326,000 loan for the purpose of the funding of the outfall of the Northeast Regional
Detention Pond.
SECOND:Neil McCaffrey seconded the motion.
With an 8-0 vote,the North College Citizen Advisory Group unanimously recommend the
NECCO project to the URA Board to support the authorization of$326,000 loan for the purpose
of the funding of the outfall of the Northeast Regional Detention Pond.
II: New Business—Floodplain Topic
1. Floodplam— eHTopic is the possible floodplain revisions. Dean talked to Darin
this week expressing concerns an ill be bringing someone from
i. Discussion on why the project did r e G before going to
Council sston on all the entities nee m ed in a discussion on
ATTACHMENT 8
Ld l� r
NECCO Project Alignment
e
Property Owners
0
!� Legend
Storm Sewer Pipes
® Project Detention Ponds
Water Features
Parcels
City Streets
G
- U GUNITAS Srryder Snyder
D11 ERSIFIED
I PR JECTS , LLC -
.� AKBARY,
ALIT AMANDY,
FLACK 0
K ALILMIOE r lei
AND
JENSEN , $7a ,000.00 a '' DO East Vine
Diversion Channel o
Srrytler OO Schlegel Kederike ^ice
Lem ay, LLC
�6�aa 0 5.pQ $3, 5&5, 000. 00
Kederike
Lemay, LLC
Rod<y M ounta in
� — Raptor Program
- - btl' Ciaek
__ - -----� DOS
—�— "- — - —_ - RIOS LLC
TPLUI O "T
LL
pj{G11 _ _ .�--
- __ GOY � �I Li $p,5
�°�e4¢o � w — E 30.000 00
S Dry Creek
Connection Channel
Please note: these cost estimates are based on 2009 numbers = Feet
ns
and do not include permitting , salaries , and other contingencies 0 250 5 0 1 ,000 ,500 21000 J '
ORDINANCE NO. 061, 2011
OF THE.COUNCIL OF THE CITY OF FORT COLLINS
APPROPRIATING FUNDS FROM THE CITY'S STORMWATER RESERVES
FOR TRANSFER TO THE FORT COLLINS URBAN RENEWAL AUTHORITY
FOR THE PURPOSE OF PROVIDING A LOAN FOR THE
NORTHEAST COLLEGE CORRIDOR OUTFALL PROJECT
WHEREAS,the Fort Collins Urban Renewal Authority(the"URA")was created on January
5, 1982 to prevent and eliminate conditions related to certain blight factors in the City; and
WHEREAS, the City Council, by adoption of Resolution 2004-152, has made findings
required by Colorado Revised Statutes,Part 1 of Title 31,Article 25 and declared the area described
in Resolution 2004-151 as blighted and approved the Urban Renewal Plan for the North College
Avenue Corridor (the "Plan"); and
WHEREAS,on August 15,2006,the City Council adopted Resolution 2006-082 authorizing
an intergovernmental agreement between the City and the URA whereby the City will provide
support services to the URA and will advance funds to the URA so long as the advance of such
funds is evidenced in writing by apromissory note; and
WHEREAS, the Northeast College Corridor Outfall Project (the "NECCO") includes the
acquisition of a parcel of land approximately ten acres in size for a regional detention pond designed
to accept regional stormwater flows as well as stormwater from development adjacent to the pond
within the North College Urban Renewal Area; and
WHEREAS,NECCO is part of the Stormwater Master Plan and the$1,222,934 purchase of
the ten-acre parcel is being funded by the City's Stormwater Utility,which is contributing$896,462,
and the URA, which is contributing $326,472; and
WHEREAS, the URA will not have sufficient tax increment revenues in 2011 to fund its
contribution to the NECCO; and
WHEREAS, City staff therefore recommends that the City lend the.URA the funds needed
for that purpose; and
WHEREAS, on September 2, 2010, the North College Citizen Advisory Group voted in
favor of the URA borrowing $326,472 from the City to fund its contribution to the NECCO; and
WHEREAS, there are sufficient prior year reserves in the Storm Drainage Fund Reserves
to fund a loan to the URA for the purpose of purchasing the ten-acre parcel of land for the above-
described detention pond; and
WHEREAS,because the NECCO improvements are a utilities infrastructure improvement,
City staff presented an agenda item to the Water Board on August 19, 2010, seeking a
recommendation of the Water Board with regard to the proposed loan from Storm Drainage Fund
Reserves, and Water Board members voted unanimously to support that proposal; and
WHEREAS, Article X, Section 6 of the City Charter states that net operating revenues of
the City's utilities may be expended only for renewals, replacements, extraordinary repairs,
extensions, improvements, enlargements, embitterments to such utility, or other specific utility
purpose determined to the Council to be beneficial to the ratepayers of said utilities; and
WHEREAS, City staff believes that the use of stormwater reserves as a funding source for
a loan to the URA in this situation will be beneficial to the ratepayers of the City's Stormwater
Utility because the overall stormwater system will become more efficient; and
WHEREAS,staff has prepared a proposed promissory note and loan agreement titled"Loan
Agreement Between the City of Fort Collins and the Fort Collins Urban Renewal Authority for
NECCO" (the "Loan Agreement"), attached hereto as Exhibit "A" and incorporated herein by this
reference; and
WHEREAS, the City Manager recommends funding the loan to the URA from the
Stormwater prior year reserves; and
WHEREAS,Article V,Section 9,of the City Charter permits the City Council to appropriate
by ordinance at any time during the fiscal year such funds for expenditure as may be available from
reserves accumulated in prior years, notwithstanding that such reserves were not previously
appropriated.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1. That there is hereby appropriated from Storm Drainage Fund Reserves the
sum of THREE HUNDRED TWENTY SIX THOUSAND FOUR HUNDRED SEVENTY TWO
DOLLARS ($326,472) for expenditure as a loan to the Fort Collins Urban Renewal Authority.
Section 2. That the use of this $326,472 in Stormwater prior year reserves for the
purpose of funding a loan to the URA,according to the terms and conditions of the Loan Agreement,
will serve a specific utility purpose for the ratepayers of the City's Stormwater Utility and will be
beneficial to the ratepayers in that the overall stormwater system will be more efficient.
Section 3. That the Loan Agreement is hereby approved, and the City Manager is
authorized to execute said agreement,subject to such modifications in form or substance as the City
Manager may, in consultation with the City Attorney, deem desirable and necessary to protect the
City's interests.
Introduced, considered favorably on first reading, and ordered published this 17th day of
May, A.D. 2011, and to be presented for final passage on the 7th day of June, A.D. 2011.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading on the 7th day of June, A.D. 2011.
Mayor
ATTEST:
City Clerk
EXHIBIT A
LOAN AGREEMENT BETWEEN THE CITY OF FORT COLLINS
AND THE FORT COLLINS URBAN RENEWAL AUTHORITY
FOR FUNDING THE
NORTHEAST COLLEGE CORRIDOR OUTFALL PROJECT
THIS LOAN AGREEMENT (the "Agreement") made this day of
2011, by and between the CITY OF FORT COLLINS, COLORADO, a municipal corporation, (the
"City"), and FORT COLLINS URBAN RENEWAL AUTHORITY, a public body corporate and
politic of the State of Colorado, (the 'Borrower").
RECITALS
A. Borrower is an urban renewal authority for the City, created pursuant to
Colorado Revised Statutes Part 1 of Title 31, Article 25, as amended (the "Act").
B. Borrower was created on January 5, 1982 to prevent and eliminate conditions
related to certain "blight factors" in the community. The Act gives the Borrower broad powers
to carry out its statutory mandate. Included are the powers to enter into contracts, borrow or
lend funds and to acquire property, among others. Urban renewal projects may be financed in a
variety of ways and urban renewal authorities are authorized to borrow money, issue bonds,
and accept grants from public or private sources.
C. By Resolution 2004-151, the City Council for the City (the "City Council") found
and declared the area described therein (the "Area") to be a blighted area as defined in the Act,
and appropriate for inclusion in an urban renewal project.
D. By Resolution 2004-152, the City.Council made findings and approved the urban
renewal plan (the "Plan") for the North College Avenue Corridor.
E. By the Intergovernmental Agreement approved by City of Fort Collins
Resolution 2006-082, the City may advance funds to the Borrower in support of its activities so
long as any such advance of funds is evidenced in writing in the form of a loan memorialized by
a promissory note, which transaction shall not be valid until first having been approved by both
the City Council and the Board of Directors for the Borrower.
F. Borrower will incur certain costs relating to its partnership with the City
Stormwater Utility to design, install, construct and finance public improvements in the
Northeast College Corridor Outfall (the "Project") which is located in the Area, and has
requested and applied to City for a loan to provide funding for these costs not to exceed Three
Hundred Twenty Six Thousand Four Hundred Seventy Two Dollars ($326,472) and City is
willing to make a loan on the terms and conditions hereinafter set forth (the "Loan").
1
G. Tax increment financing for the Project is specifically permitted pursuant to
Section 7 of the Plan.
NOW, THEREFORE, in consideration of the mutual covenants and agreements herein
contained, the parties agree as follows:
Section 1. The Loan. After the effective date of this Agreement(the "Effective
Date"), the adoption of the required resolutions or ordinances by the City and Borrower, and
the execution of a promissory note and other documents as may reasonably be required, the
City will loan the Borrower the sum of Three Hundred Twenty Six Thousand Four Hundred
Seventy Two Dollars ($326,472) from the City's Stormwater Drainage fund (the "Loan').
Section 2. Interest. Interest on the Loan will accrue at a rate equal to %.
Section 3. Payment. Principal and accrued interest will be due and payable by the
Borrower to the City as follows:
The anniversary date of the Effective Date for years 0 through 9 (Interest Only Payment
Term): there will be annual interest only payments.
The anniversary date of the Effective Date for year ten (Balloon Payment): all remaining
interest and principal will be due and payable.
The payment schedule, under which Borrower must make its payments, is in Exhibit A,
attached and incorporated into this Agreement.
Borrower, in its sole discretion, may prepay all or any portion of the Loan at any time and that
prepayment will be without any prepayment penalty. If a prepayment is made, the funds will
go first toward any interest which has accrued and the balance then applied to the reduction of
principal.
Section 4. Tracking. Borrower agrees to maintain a separate payable line-item
within its accounting system to track the Loan.
Section 5. Alternative Financing. The Parties contemplate that at some point in the
future the Borrower will obtain alternative financing (e.g. bond financing) and will diligently
pursue that financing with a goal to reducing the outstanding balance of the Loan.
Section 6. Notice. Any notice required to be delivered in writing will be
accomplished by personal delivery or mailing postage prepaid by the United States Postal
Service, or other commercial carrier to the following addresses:
2
If to the City
City of Fort Collins
Director of Finance
PO Box 580
Fort Collins, CO 80522-0580
If to the Borrower
Fort Collins Urban Renewal Authority
Director of Advance Planning
PO Box 580
Fort Collins, CO 80522-0580.
Section 7. Entire Agreement. This Agreement will be construed according to its fair
meaning, as if prepared by both Parties, and constitutes the entire understanding and
agreement of the Parties related to the matters addressed in this Agreement.
CITY:
CITY OF FORT COLLINS, COLORADO, a
municipal corporation
By:
Karen Weitkunat, Mayor
ATTEST:
By:
Wanda Krajiceck, City Clerk
APPROVED AS TO FORM:
By:
Assistant City Attorney
BORROWER:
FORT COLLINS URBAN RENEWAL
AUTHORITY, a public body corporate and politic
of the State of Colorado.
By:
Executive Director
3
Exhibit A
2011 Storm Drainage Loan to URA
Start Date 30-Jun-11
Amount $326,472.00
Years 10
Interest 3.348% **
Payment
Payment# Date Amount Interest Principal Balance
30-Jun-11 326,472.00
1 30-Jun-12 10,930.28 10,930.28 - 326,472.00
2 30-Jun-13 10,930.28 10,930.28 - 326,472.00
3 30-Jun-14 10,930.28 10,930.28 - 326,472.00
4 30-Jun-15 10,930.28 10,930.28 - 326,472.00
5 30-Jun-16 10,930.28 10,930.28 - 326,472.00
6 30-Jun-17 10,930.28 10,930.28 - 326,472.00
7 30-Jun-18 10,930.28 10,930.28 - 326,472.00
8 30-Jun-19 10,930.28 10,930.28 326,472.00
9 30-Jun-20 10,930.28 10,930.28 - 326,472.00
10 30-Jun-21 337,402.28 10,930.28 326,472.00 -
435,774.83 109,302.83 326,472.00
*-Start date will be set when loan agreement is authorized.
**- Rate will be established the day after loan agreement is authorized.
PROMISSORY NOTE
$326,472 2011
FOR VALUE RECEIVED, FORT COLLINS URBAN RENEWAL AUTHORITY, a public body
corporate and politic of the State of Colorado ('Borrower"), promises to pay to the order of THE
CITY OF FORT COLLINS, COLORADO, a municipal corporation ("Lender"), at its office at 300
LaPorte Avenue, Fort Collins, Colorado 80524, in lawful money of the-United States of America
the principal amount of Three Hundred Twenty Six Thousand Four Hundred Seventy Two
Dollars ($326,472). This Promissory Note is issued pursuant to the Loan Agreement between
the City of Fort Collins and the Fort Collins Urban Renewal Authority for Funding the
Northeaster College Corridor Outfall Project dated 1 2010, between
Borrower and Lender (the "Loan Agreement"). Capitalized terms used herein but not defined
herein have the meanings given such terms in the Loan Agreement. The obligations of
Borrower evidenced by this Promissory Note are payable in accordance with the terms and
conditions of the Loan Agreement.
The rate of interest borne by this Promissory Note is a fixed rate equal to %
per annum ("Interest Rate"). Final payment of all unpaid Principal and accrued interest will be
due and payable on the Maturity Date. The annual interest rate of this Promissory Note is
computed on a 360 day year basis, multiplied by the actual number of days elapsed.
The Loan may be drawn 100%upon execution of the Loan Documents, or in part from
time to time, but not more frequently than monthly.
This Promissory Note shall mature on the tenth anniversary of the Effective Date of the
Loan Agreement. At such time all unpaid principal, interest, default interest, fees and charges
owing under this Note shall be deemed payable in full.
Unless otherwise agreed or required by applicable law, payments will be applied first to
any accrued interest; then to principal; then to any late charges; and then to any unpaid
collection costs.
If Lender refers this Note to an attorney for collection or seeks legal advice following a
default beyond all cure periods alleged under this Note, or the Lender is the prevailing party in
any action instituted on this Note, or if any other judicial or non-judicial action, suit or
proceeding is instituted by Lender or any future holder of this Note, and an attorney is
employed by Lender to appear in any such action or proceeding, or to reclaim, seek relief from
a judicial or statutory stay, sequester, protect, preserve or enforce Lender's interest in this Note,
the Loan Documents or any other security for this Note (including, but not limited to,
proceedings under federal bankruptcy law or in connection with any state or federal tax lien),
then Borrower promises to pay reasonable attorneys' fees and reasonable costs and expenses
incurred by Lender and/or its attorney in connection with the above-mentioned events. If not
paid within ten (10) days after such fees become due and written demand for payment is made,
such amount shall be due on demand or may be added to the principal, at the Lender's
discretion.
Should any payment or installment hereunder be not paid when the same becomes due
and payable, Borrower recognizes that the Lender will incur extra expenses for both the
administrative cost of handling delinquent payments and the cost of funds incurred by Lender
after such due date as a result of not having received such payment when due. Therefore,
Borrower shall, in such event, without further notice, and without prejudice to the right of
Lender to collect any other amounts provided to be paid herein, including default interest or to
declare a default hereunder, pay to Lender to cover such expenses incurred as a result of any
installment payment due being not received within ten (10) days of its due date, a "late charge"
of five percent(5%) of the amount of such delinquent payment.
Except as otherwise provided herein, the Borrower waives presentment and demand for
payment, notice of acceleration or of maturity, protest and notice of protest and nonpayment,
bringing of suit and diligence in taking any action to collect sums owing hereunder and agrees
that its liability on this Note shall not be affected by any release or change in any security for the
payment of this Note or release of anyone liable hereunder. No extension of time for the
payment of this Note, or any installment or other modification of the terms made by the Lender
with any person now or hereafter liable for the payment of this Note, shall affect the original
liability under this Note of the Borrower, even provided the Borrower is a party to such
agreement.
In no event whatsoever shall the amount paid, or agreed to be paid, to the holder of this
Note for the use, forbearance or retention of the money to be loaned hereunder ("Interest")
exceed the maximum amount permissible under applicable law. If the performance or
fulfillment of any provision hereof or of any of the Loan Documents or any agreement between
Borrower and the Lender of this Note shall result in Interest exceeding the limit for interest
prescribed by law, then the amount of such Interest shall be reduced to such limit. If, from any
circumstance whatsoever, the Lender of this Note should receive as Interest, an amount which
would exceed the highest lawful rate, the amount which would be excessive Interest shall be
applied to the reduction of the principal balance owing (or, at the option of the Lender, be paid
over to Borrower) and not to the payment of Interest.
If any provision hereof or any of the Loan Documents shall, for any reason and to any
extent,be invalid or unenforceable, then the remainder of the document or instrument in'which
such provision is contained and any of the other Loan Documents shall not be affected thereby
but instead shall be enforceable to the maximum extent permitted by law.
Borrower and Lender hereby knowingly, voluntarily, and intentionally waive any rights
they may have to a trial by jury in respect of any litigation based hereon or arising out of, under
or in connection with this note or any course of conduct, course of dealing, statements (whether
oral or written) or actions of the other party.
- 2
This Promissory Note shall be construed in accordance with the laws of the State of
Colorado.
IN WITNESS WHEREOF, Borrower has duly executed this Promissory Note as of the
day and year first above written.
BORROWER:
FORT COLLINS URBAN RENEWAL
AUTHORITY, a public body corporate and politic
of the State of Colorado.
By:
Executive Director
- 3 -