HomeMy WebLinkAboutCOUNCIL - COMPLETE AGENDA - 06/18/2013 - COMPLETE AGENDAKaren Weitkunat, Mayor
Gerry Horak, District 6, Mayor Pro Tem Council Chambers
Bob Overbeck, District 1 City Hall West
Lisa Poppaw, District 2 300 LaPorte Avenue
Gino Campana, District 3
Wade Troxell, District 4
Ross Cunniff, District 5 Cablecast on City Cable Channel 14
on the Comcast cable system
Darin Atteberry, City Manager
Steve Roy, City Attorney
Wanda Nelson, City Clerk
The City of Fort Collins will make reasonable accommodations for access to City services, programs, and activities and
will make special communication arrangements for persons with disabilities. Assisted hearing devices are available to
the public for Council meetings. Please call 221-6515 (TDD 224-6001) for assistance.
REGULAR MEETING
June 18, 2013
Proclamations and Presentations
5:30 p.m.
No Proclamations are scheduled.
Regular Meeting
6:00 p.m.
PLEDGE OF ALLEGIANCE
1. CALL MEETING TO ORDER.
2. ROLL CALL.
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3. AGENDA REVIEW:
• City Manager Review of Agenda.
• Consent Calendar Review.
This Review provides an opportunity for Council and citizens to pull items from the Consent
Calendar. Anyone may request an item on this Calendar be “pulled” off the Consent
Calendar and considered separately.
N Council opportunity to pull Consent Calendar items.
(will be considered under Item No. 20)
N Citizen opportunity to pull Consent Calendar items.
(will be considered under Item. No. 22)
4. CITIZEN PARTICIPATION
5. CITIZEN PARTICIPATION FOLLOW-UP
This is an opportunity for the Mayor or Councilmembers to follow-up on issues raised during Citizen
Participation.
CONSENT CALENDAR
The Consent Calendar consists of Items 6 through 16. This Calendar is intended to allow the City Council
to spend its time and energy on the important items on a lengthy agenda. Staff recommends approval of
the Consent Calendar. The Consent Calendar consists of:
! Ordinances on First Reading that are routine
! Ordinances on Second Reading that are routine
! Those of no perceived controversy
! Routine administrative actions.
Individuals who wish to make comments regarding items remaining on the Consent Calendar or wish to
address the Council on items not specifically scheduled on the agenda must first be recognized by the
Mayor or Mayor Pro Tem. Before speaking, please sign in at the table in the back of the room. The
timer will buzz once when there are 30 seconds left and the light will turn yellow. The timer will buzz again
at the end of the speaker’s time. Each speaker is allowed 5 minutes. If there are more than 6 individuals
who wish to speak, the Mayor may reduce the time allowed for each individual.
Speakers are asked to:
! State your name and address for the record.
! Keep comments brief; if available, provide a written copy of statement to City Clerk.
! Address your comments to Council, not the audience.
! Promptly cease your comments when the allotted time expires.
! You may not yield part or all of your time to another and another speaker will not be
credited with time requested but not used by you.
! Applause, outbursts or other demonstrations by the audience are not allowed.
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6. Consideration and Approval of the Minutes of the May 21, 2013 Regular Meeting.
7. Second Reading of Ordinance No. 077, 2013 Appropriating Prior Year Reserves in the General Fund
for Waste Reduction and Diversion Projects Approved by the Waste Innovation Program.
This Ordinance, unanimously adopted on First Reading on June 4, 2013, shifts $135,560 that has
accumulated in the Waste Innovation Program’s reserve account into the City’s General Fund
account so that the money can be used for the purposes intended. Revenues are paid into the
Waste Innovation Program by City departments that “self haul” trash from municipal operations for
disposal in the Larimer County Landfill. The fund is designated to pay for projects that enhance these
same departments’ ability to divert more waste away from the landfill. Unspent funds from several
previous years had been moved into a “reserve” account; this action moves the funds back into the
General Fund.
8. Second Reading of Ordinance No. 078, 2013 Appropriating Unanticipated Grant Revenue into the
Stormwater Fund, and Authorizing the Transfer of Existing Appropriations from the Flood
Mapping/Stream Gaging Capital Project to the Post Fire Flood Warning Grant Project for Early Flood
Warning Capabilities.
This Ordinance, unanimously adopted on First Reading on June 4, 2013, appropriates funds received
from a State of Colorado grant totaling $17,881. The grant funds will be used to enhance early flash
flood warning capabilities due to the increased risk of flooding caused by the High Park Fire. Existing
appropriations will be used for the match of $5,960.
9. Second Reading of Ordinance No. 079, 2013, Authorizing the Use of the Noonan Tract and the
Bowes Homestead Tract as Match for a Neotropical Migratory Bird Conservation Act Grant
Administered by the U.S. Fish and Wildlife Service.
This Ordinance, unanimously adopted on First Reading on June 4, 2013, authorizes the use of a
recent acquisition of 280 acres at Soapstone Prairie Natural Area as match towards a Neotropical
Migratory Bird Conservation Act grant, as well as management funds currently obligated in the Natural
Areas Department (NAD) budget. Using the funds already spent as match towards this grant is a
great secondary benefit for the City. The $200,000 grant will expand upon Rocky Mountain Bird
Observatory’s (RMBO) research and monitoring work to implement conservation strategies and
management for 19 high priority grassland birds that breed within the Laramie Foothills Mountains
to Plains Project and 27 high priority species at wintering sites in the Chihuahua Desert of Mexico.
10. Second Reading of Ordinance No. 080, 2013, Authorizing Amendments to the Intergovernmental
Agreement Between the City and Poudre School District Pertaining to the Land Dedication and In-Lieu
Fee Requirements Contained in Such Agreement.
Since 1998, the City of Fort Collins has collected a fee-in-lieu of land dedication for both Poudre
School District and Thompson School District. These fees allow a residential developer to pay a
school site fee to the School Districts rather than dedicate a parcel of land to the District for
development of future schools. The ability of the school districts to require land dedication is
authorized under Colorado Law.
Fees are reviewed every two years and, in 2011, the Poudre School District reduced fee amounts by
11 percent. This Ordinance, unanimously adopted on First Reading on June 4, 2013, will increase
the amount of the fees the District receives by 6.9 percent. The School District is requesting an
increase in the fees collected because of an increase in land values and cost per acreage. This fee
amount was reviewed and approved by the Poudre School Board in February 2013. Thompson
School District will not be adjusting fees in 2013.
11. Second Reading of Ordinance No. 081, 2013 Authorizing Dryland Farm Leases to Harry Sauer on
Long View Farm Open Space, Prairie Ridge Natural Area, and Coyote Ridge Natural Area.
The City of Fort Collins Natural Areas Department is a minority owner in Long View Farm Open Space
and Prairie Ridge Natural Area, and is the sole owner of the McKee parcel within Coyote Ridge
Natural Area. The majority owners of Long View and Prairie Ridge are Larimer County and the City
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of Loveland respectively. All three properties are leased by Harry Sauer for dryland wheat production
and have been since the time of purchase of the properties by the Cities and County.
Intergovernmental Agreements state which agency has management authority and receives the
lease revenues for each property. As current leases expire on the properties, all three entities have
worked collaboratively to create leases with similar terms and have advertised the properties for lease
via one Request for Proposals process. This Ordinance, unanimously adopted on First Reading on
June 4, 2013, authorizes dryland farm leases to Harry Sauer on these areas. The new leases have
a higher lease rate and more contemporary language. Restoration of the dryland wheat to native
grasses on the McKee parcel will continue at the same pace as in the past and it will nearly be
completely restored to native grasslands by the end of the lease term of five years.
12. Second Reading of Ordinance No. 083, 2013, Designating the Johnson Farm Property, 2608 East
Drake Road as a Fort Collins Landmark Pursuant to Chapter 14 of the City Code.
This Ordinance, adopted by a vote of 6-0 (Campana recused) on First Reading on June 4, 2013,
designates the Johnson Farm Property at 2608 East Drake Road as a Fort Collins Landmark. The
owner of the property, Gino Campana of Johnson Farm LLC, is initiating this request.
13. Postponement of Second Reading of Ordinance No. 084, 2013 Authorizing the Conveyance of Four
Easements, a Temporary Construction Easement and a Revocable Permit on City Right-of-Way and
City-Owned Property to Linden Bridges LLC for the Encompass-River District Block One Mixed Use
Development to July 2, 2013.
Encompass – River District Block One Mixed Use Development is a mixed use development at 418
Linden Street consisting of office space, residential space and a restaurant. The property is owned
by Linden Bridges LLC. Several easements are required for this project for improvements in the right-
of-way, bank stabilization and river enhancement, drainage and landscape areas. The Developer has
requested that Second Reading of this Ordinance authorizing the conveyance of easements, be
postponed until July 2, 2013, due to scheduling conflicts with the developer and the consultant.
14. First Reading of Ordinance No. 085, 2013, Appropriating Unanticipated Revenue in the General Fund
to be Remitted to the Fort Collins Housing Authority to Fund Affordable Housing and Related
Activities.
The Fort Collins Housing Authority paid the City of Fort Collins $3,169 as the 2012 payments for
public services and facilities. The Authority requests that the City refund those payments, also known
as Payment in Lieu of Taxes (PILOT), to fund sorely needed affordable housing related activities and
to attend to the low-income housing needs of Fort Collins residents.
Resolution 1992-093 reinstated the requirement that the Authority make annual PILOT payments to
the City. The City may spend the PILOT revenues as it deems appropriate in accordance with law,
including remitting the funds to the Authority if the Council determines that such remittal serves a valid
public purpose. The Council has annually remitted the PILOT payment to the Authority since 1992.
15. First Reading of Ordinance No. 086, 2013, Authorizing the Conveyance of a Non-Exclusive Access
Easement on Fossil Creek Wetlands Natural Area to Paragon Estates Homeowners Association.
The Natural Areas Department intends to formalize its verbal agreement with Paragon Estates
Homeowners Association (HOA) for access across an existing two-track road off Trilby Road to the
HOA’s pumphouse. The pumphouse is located within an existing irrigation easement on Fossil Creek
Wetlands Natural Area. The HOA’s current access has minimal impact to the Natural Area and no
additional impacts are anticipated. Access would be solely for maintenance and operation of the
facilities associated with the existing irrigation easement. No other access rights are to be conveyed.
16. Resolution 2013-054 Making Findings of Fact and Conclusions Regarding the Appeal of the April 18,
2013 Planning and Zoning Board Approval of the Max Flats Project Development Plan.
On April 18, 2013, the Planning and Zoning Board considered and approved the application for the
Max Flats, Project Development Plan. On May 2, 2013, a Notice of Appeal was filed seeking to modify
the approval.
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On June 4, 2013, City Council voted 5-2 (Nays: Cunniff, Overbeck)concluding that the evidence
presented did not indicate the Board failed to conduct a fair hearing by considering evidence relevant
to its findings which was substantially false or grossly misleading, nor did it substantially ignore its
previously established rules of procedure. City Council voted 7–0 that the Planning and Zoning Board
properly interpreted and applied the Land Use Code in approving the Plan, but that, based upon
information presented to the City Council on appeal, the City Council determined that the decision of
the Board should be modified by the addition of the following conditions of approval:
a. Five trees must be planted along the west side boundary of the property.
b. Juliet balconies must be installed along the west side of the building as shown on the
elevation presented to the City Council on appeal.
c. The tower elements must be added to the building as shown on the elevation
presented to the City Council on appeal.
d. All materials cladding the building must be consistent on all elevations around the
building.
In order to complete the record regarding this appeal, Council should adopt a Resolution making
findings of fact and finalizing its decision on the appeal.
END CONSENT
17. Consent Calendar Follow-up.
This is an opportunity for Councilmembers to comment on items adopted or approved on the Consent
Calendar.
18. Staff Reports.
19. Councilmember Reports.
20. Consideration of Council-Pulled Consent Items.
DISCUSSION ITEMS
The method of debate for discussion items is as follows:
! Mayor introduces the item number and subject; asks if formal presentation will be made by
staff
! Staff presentation (optional)
! Mayor requests citizen comment on the item (five-minute limit for each citizen)
! Council questions of staff on the item
! Council motion on the item
! Council discussion
! Final Council comments
! Council vote on the item
Note: Time limits for individual agenda items may be revised, at the discretion of the Mayor, to ensure
all citizens have an opportunity to speak. Please sign in at the table in the back of the room.
The timer will buzz when there are 30 seconds left and the light will turn yellow. It will buzz again
at the end of the speaker’s time.
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21. Resolution 2013-055 Concerning the Fort Collins Urban Renewal Authority and its Tax Increment
Revenue Refunding Bonds (North College Avenue Project), Series 2013, Declaring the City Council’s
Present Intent to Appropriate Funds to Replenish the Reserve Fund Securing Such Bonds, If
Necessary; and Authorizing a Cooperation Agreement and Other Actions Taken in Connection
Therewith. (staff: John Voss; 10 minute staff presentation; 20 minute discussion)
The URA intends to refinance a portion of the debt it originally borrowed from the City in relation to
the North College area. Now that an established revenue stream can be shown to investors, private
money can be used to replace City money. The 2013 bonds require the URA to establish a debt
reserve fund. To further facilitate the credit rating on the replacement debt, the City Council is asked
to adopt the Resolution expressing the Council’s intent to replenish the debt reserve fund if such
funds are ever used to make debt payments. With this Resolution, the new URA debt is expected
to have an effective interest rate of 3.3%.
22. Consideration of Citizen-Pulled Consent Items.
23. Other Business.
24. Adjournment.
Every Council meeting will end no later than 10:30 p.m., except that: (1) any item of business commenced
before 10:30 p.m. may be concluded before the meeting is adjourned and (2) the City Council may, by
majority vote, extend a meeting until no later than 12:00 a.m. for the purpose of considering additional items
of business. Any matter which has been commenced and is still pending at the conclusion of the Council
meeting, and all matters scheduled for consideration at the meeting which have not yet been considered
by Council, will be continued to the next regular Council meeting and will be placed first on the discussion
agenda for such meeting.
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u r b a n r e n e w a l a u t h o r i t y
Karen Weitkunat, Chairperson City Council Chambers
Gerry Horak, Vice-Chairperson City Hall West
Bob Overbeck 300 LaPorte Avenue
Lisa Poppaw Fort Collins, Colorado
Gino Campana
Wade Troxell
Ross Cunniff Cablecast on City Cable Channel 14
on the Comcast cable system
Darin Atteberry, Executive Director
Steve Roy, City Attorney
Wanda Nelson, Secretary
The City of Fort Collins will make reasonable accommodations for access to City services, programs, and activities and
will make special communication arrangements for persons with disabilities. Please call 221-6515 (TDD 224-6001) for
assistance.
URBAN RENEWAL AUTHORITY
BOARD OF COMMISSIONERS MEETING
June 18, 2013
(after the Regular Council Meeting)
1. Call Meeting to Order.
2. Roll Call.
3. Agenda Review:
• Executive Director’s Review of Agenda.
4. CITIZEN PARTICIPATION
Individuals who wish to address the Board on items not specifically scheduled on the agenda must first
be recognized by the Chairperson or Vice Chair. Before speaking, please sign in at the table in the
back of the room. The timer will buzz once when there are 30 seconds left and the light will turn yellow.
The timer will buzz again at the end of the speaker’s time. Each speaker is allowed 5 minutes. If there
are more than 6 individuals who wish to speak, the Chairperson may reduce the time allowed for each
individual.
! State your name and address for the record.
! Applause, outbursts or other demonstrations by the audience are not allowed
! Keep comments brief; if available, provide a written copy of statement to Secretary
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5. CITIZEN PARTICIPATION FOLLOW-UP
This is an opportunity for the Chairperson and Commissioners to follow-up on issues raised during
Citizen Participation.
6. Staff Reports.
7. Commissioner Reports.
DISCUSSION ITEMS
The method of debate for discussion items is as follows:
! Chairperson introduces the item number and subject; asks if formal presentation will be
made by staff
! Staff presentation (optional)
! Chairperson requests citizen comment on the item (five-minute limit for each citizen)
! Board questions of staff on the item
! Board motion on the item
! Board discussion
! Final Board comments
! Board vote on the item
Note: Time limits for individual agenda items may be revised, at the discretion of the Chairperson, to
ensure all citizens have an opportunity to speak. Please sign in at the table in the back of the
room. The timer will buzz when there are 30 seconds left and the light will turn yellow. It will buzz
again at the end of the speaker’s time.
8. Consideration and Approval of the Minutes of the May 8 and May 14, 2013 Urban Renewal Authority
Meetings.
9. Resolution No. 058 of the Fort Collins Urban Renewal Authority Authorizing, Approving and Directing
the Issuance, Sale and Delivery by the Authority of Tax Increment Revenue Refunding Bonds (North
College Avenue Project) Series 2013, in the Maximum Aggregate Principal Amount of $11,800,000;
Approving Documents in Connection Therewith; and Ratifying Prior Actions. (staff: John Voss; 5
minute staff presentation; 10 minute discussion)
Property tax revenue in the North College Plan Area has matured and is therefore attractive to outside
investors. The Resolution adopted by the City Council expresses the Council’s intent to replenish the
URA’s debt service reserve fund if such funds are ever used to make debt service payments.
Replenishment of the reserve fund is contingent upon annual appropriation of funds by the City
Council in its sole discretion. The City Council's expression of intent improves the credit rating on the
2013 Bonds. With the City Council Resolution, the 2013 Bonds are expected to have an effective
interest rate of 3.3%, which is slightly less than the weight average of the current loans, 3.44%.
10. Resolution No. 059 of the Fort Collins Urban Renewal Authority Adopting the Storefront Improvement
Program for the North College Urban Renewal Area and Authorizing the Executive Director to Enter
Into Project Reimbursement Agreements. (staff: Tom Leeson, Megan Bolin, Josh Birks; 5 minute
staff presentation; 20 minute discussion)
This Resolution is a formal approval of the Storefront Improvement Program for the North College
Urban Renewal Area. The purpose of the Program is to encourage the voluntary rehabilitation of
commercial buildings, improvements and conditions within the North College Urban Renewal Area
by offering financial assistance (50% of the total project cost, up to a maximum URA contribution of
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$5,000 per storefront) to property owners and/or business tenants seeking to renovate or restore their
commercial storefronts and/or building facades.
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12. Adjournment.
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DATE: June 18, 2013
STAFF: Wanda Nelson
AGENDA ITEM SUMMARY
FORT COLLINS CITY COUNCIL 6
SUBJECT
Consideration and Approval of the Minutes of the May 21, 2013 Regular Meeting.
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May 21, 2013
COUNCIL OF THE CITY OF FORT COLLINS, COLORADO
Council-Manager Form of Government
Regular Meeting - 6:00 p.m.
A regular meeting of the Council of the City of Fort Collins was held on Tuesday, May 21, 2013,
at 6:00 p.m. in the Council Chambers of the City of Fort Collins City Hall. Roll call was answered
by the following Councilmembers: Horak, Cunniff, Overbeck, Campana, Troxell and Weitkunat.
(Councilmember Poppaw arrived at 9:26 p.m.)
Staff Members Present: Atteberry, Nelson, Roy.
Mayor Weitkunat recognized the participants in the Cityworks 101 class.
Agenda Review
City Manager Atteberry stated Item No. 10, First Reading of Ordinance No. 076, 2013,
Appropriating General Fund Reserves for the Platte River Power Authority Transmission Line
Relocation Project Located on the Woodward Property, needs to be removed from the Consent
Calendar for separate consideration as the Ordinance has been revised to adjust the source for the
appropriated funds.
City Manager Atteberry stated Council will consider different options relating to Item No. 27,
Second Reading of Ordinance No. 057, 2013 Terminating the Moratorium Imposed by Ordinance
No. 145, 2012 with Respect to Oil and Gas Operations Conducted Under an Oil and Gas Operator
Agreement Between the City and Prospect Energy, LLC and Exempting Such Operations from the
Prohibitions Contained in Section 12-135 of the City Code, and will need to consider the Resolution
relating to this item prior to the Ordinance.
Citizen Participation
Eric Sutherland, 3520 Golden Currant, discussed tax increment financing and stated the
methodology used by the County Assessor does not provide accurate assessments of increment
versus base.
Stacy Lynne, 305 West Magnolia, asked that Council read an update on her son’s custody case. She
opposed new fees at Northside Atzlan Center.
Diane Smith, Senior Advisory Boardmember, supported the North Front Range Transit Vision
Feasibility Study.
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John Anderson, Larimer County resident, opposed money spent toward consumerism and opposed
the definition of the triple bottom line in Fort Collins.
Per Hogestad, 1601 Sheeley Drive, expressed concern regarding the City’s planning process and
requested that a new planner be assigned to the project in his neighborhood.
Jack Applin, 1608 Sheeley Drive, expressed concern regarding consistency in the Land Use Code.
Rick Hoffman, 1804 Wallenberg Drive, stated he had hoped the West Central Neighborhood Plan
would offer more protection to existing neighborhoods. He requested additional examination of the
Plan in the development review process.
Vida Hogestad, 1601 Sheeley Drive, asked why the newly-hired Neighborhood Development
Review Liaison has not been a resource for her neighborhood.
TJ McManus, 1605 Sheeley Drive, stated the City planner for the development proposal in this
neighborhood has considered his home and the surrounding homes to be 2-story homes in order to
be more compatible with the proposed development. He argued the homes are single-story ranch
homes and are considered so by several entities.
Reuel Rolston, 1612 Sheeley Drive, stated the development team has not solicited input from the
neighborhood or allowed a neighborhood meeting process for the proposed development in his
neighborhood.
Ruth Hufbauer, 1609 Sheely Drive, expressed concern regarding the planning process.
Jana Brandes, 1600 Sheeley Drive, requested development be done in an intelligent, compatible
way.
Deb Applin, 1608 Sheeley Drive, expressed concern that historic designation does not apply to the
rear of the house with regard to future development. She suggested the development go before the
Landmark Preservation Commission for suggestions.
Mike Pruznick, 636 Castle Ridge Court, expressed concern regarding the processes relating to
boards and commissions and Council.
Ray Martinez, 4121 Stoneridge Court, expressed concern regarding the amount of liquor licenses
in North Fort Collins.
Sandy Lemburg, 300 Remington, announced a March Against Monsanto on Saturday at Library
Park.
Matthew Martinez, Fort Collins resident, thanked Council and staff for hard work regarding Frack
Free Fort Collins.
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Citizen Participation Follow-up
Mayor Weitkunat stated an application has been filed for development review regarding the
development in the Sheeley neighborhood; therefore, Council cannot participate in the discussion.
She stated planning staff will take into consideration the issues and respond appropriately.
Councilmember Cunniff stated he has expressed concern regarding the planning process and
encouraged additional work on ease of citizen input.
Councilmember Overbeck requested follow-up regarding a petition mentioned by one of the
citizens. City Manager Atteberry stated the issue of potentially fraudulent acquisition of petition
signatures was presented to Police Chief Hutto and Council will receive follow-up information.
Councilmember Campana stated staff has made considerable improvements on the planning process,
including the development of the Neighborhood Development Review Liaison position, and noted
more of this type of dialogue will occur as more infill and redevelopment projects occur.
Councilmember Cunniff requested a report on the fee structure for the Northside Atzlan Center.
Councilmember Campana noted some background research may already exist regarding the
saturation of liquor licenses.
Councilmember Troxell requested additional information related to the Northside Atzlan Center
fees.
CONSENT CALENDAR
6. Consideration and Approval of the Minutes of the April 29 Adjourned Meeting.
7. Second Reading of Ordinance No. 066, 2013, Appropriating Prior Year Reserves and
Unanticipated Revenue in the General Fund for Cultural Development and Programming
Activities, Tourism Programming, and the Fort Collins Convention and Visitors Bureau.
This Ordinance, unanimously adopted on First Reading on May 7, 2013, appropriates
$139,465, of which $57,571 is for 2013 Cultural Development and Programming Activities
(Fort Fund), $9,842 for 2013 Tourism Programming (Fort Fund), and $72,052 for 2013 Fort
Collins Convention and Visitors Bureau (CVB) from Unanticipated Revenue (Lodging Tax)
and Prior Year Reserves (unspent appropriations) in the General Fund Lodging Tax
Reserves. Lodging Taxes for 2012 were estimated at $815,000; actual Lodging Tax
revenues collected equaled $1,011,840 ($196,840 over estimate). In 2013, the Fort Collins
CVB is due to receive $740,552 based on 2012 Lodging tax collections and prior year
reserves. However, the CVB has already received $65,736 of the unanticipated $137,788
Lodging tax revenue in 2012 so only $72,052 is needed to be appropriated to the Fort Collins
CVB.
8. Second Reading of Ordinance No. 067, 2013 Amending Resolution 2013-001, Ordinance
No. 006, 2013, and Ordinance No. 007, 2013, to Correct an Error in the Naming of the
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Annexation as “Hansen Annexation” by Renaming the Annexation “Hansen Farm
Annexation.”
In January and February of this year, the City Council adopted Resolution 2013-001,
Ordinance No. 006, 2013 and Ordinance No. 007, 2013, all pertaining to the what was called
the “Hansen Annexation.” This reference to the “Hansen Annexation” was in error because
the reference should have been to “Hansen Farm” Annexation. The purpose of this
Ordinance, unanimously adopted on First Reading on May 7, 2013, is to correct that error.
9. First Reading of Ordinance No. 069, 2013, Appropriating Prior Year Reserves in the Keep
Fort Collins Great Fund to Support the Landmark Rehabilitation Loan Program for 2013.
This is a request for an appropriation of $33,000 to support the City’s Landmark
Rehabilitation Loan Program from prior years in the Keep Fort Collins Great Fund (KFCG).
The Landmark Rehabilitation Loan Program is a highly successful financial incentive
program for encouraging the sustainable revitalization of historic residential and commercial
structures. The Program was funded with Keep Fort Collins Great funds in the amount of
$25,000 each year for 2013-2014. However, this year alone, the popular program received
over $65,000 in loan funding requests from 12 applicants for 24 projects costing over
$206,200 in materials and services. Without Rehabilitation Loan Program funding, many of
these projects could not proceed.
The request is for the use of KFCG Other Community Priority prior year reserves created
by the 2012 unspent Design Assistance Program (DAP) budget. Both the Loan Program and
the DAP were funded in 2012 from KFCG - Other Community Priorities. These two
incentive programs are closely linked sub-programs of the Historic Preservation Program,
and provide a continuum of financial support for qualified historic preservation projects.
10. First Reading of Ordinance No. 076, 2013, Appropriating General Fund Reserves for the
Platte River Power Authority Transmission Line Relocation Project Located on the
Woodward Property.
Council approved the Woodward incentive package in April 2013. As a part of that
agreement, Woodward agreed to advance funds to support the relocation of the Platte River
Power Authority (PRPA) Transmission Line. This Ordinance appropriates $1,297,080 from
the General Fund Reserves for the relocation of the PRPA transmission line. Immediate
appropriation is needed to allow the transmission line relocation to move forward so that
Woodward's building site plans may remain on schedule. Delay in authorizing the
appropriation may necessitate the need for PRPA to construct and remove a temporary
transmission line as well as design and construct the relocated permanent transmission line.
This effort would require that PRPA incur additional costs.
11. First Reading of Ordinance No. 070, 2013, Amending Section 4-196 of the City Code so as
to Change the Violation of Interference with Animal Control Officers from a Civil Infraction
to a Criminal Misdemeanor Offense.
On February 19, 2013, City Council adopted Ordinance No. 021, 2013, amending Chapter
4 of the City Code decriminalizing certain offenses related to the care and keeping of
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animals. This change was intended to include all animal offenses that constitute
neighborhood nuisances. After further deliberation, Animal Control recommends keeping
the section pertaining to interference with an animal control officer as a criminal
misdemeanor. Staff recommends changing this Code section from a civil infraction to a
criminal misdemeanor.
12. First Reading of Ordinance No. 071, 2013, Amending Section 19-65 of the City Code
Related to the Service of a Civil Citation.
In an effort to correct an inadvertent change that occurred with a previous Code change, this
amendment will provide the ability for a civil citation to be issued immediately for repeated
civil infractions. This will apply to a second or subsequent violation within a twelve (12)
month period for the same violation. This process already applies for Land Use Code
Section 3.8.16 pertaining to occupancy limits, so this change would make the process
consistent for civil infractions. Additionally, this Code change specifies that a civil citation
may be issued immediately for animal code violations.
13. First Reading of Ordinance No. 072, 2013, Amending Sections 19-36 and 19-41 of the City
Code Pertaining to Municipal Court Referees.
This Ordinance makes two minor changes to the Code provisions relating to Municipal
Court Referees. First, it removes the residency requirement for such Referees from Section
19-36 so that the Assistant Municipal Judges, who lives outside the City limits, can serve as
a back-up Referee, especially on animal infraction cases. Second, it revises Section 19-41
so that all Referees have the same authority to reduce or waive penalties and assessments
when appropriate. It removes the previous distinction between the authority of the Parking
Referee and the Civil Infraction Referee, which was creating some confusion.
14. First Reading of Ordinance No. 073, 2013, Amending the City Code to Grant Revocable
Permits to Non-City Utilities in Annexed Areas and Correct Internal References.
This Ordinance eliminates the requirement that a non-City utility provider apply for a permit
to continue providing electric service to properties annexed into the city. A revocable permit
would automatically be granted at annexation and revoked upon transfer of service.
The second proposed Code change would allow the Utilities Executive Director to adopt
minor technical revisions that clarify an existing standard or improve conformity toward best
engineering practices.
15. First Reading of Ordinance No. 074, 2013, Amending the City Code to Authorize
Administrative Adoption of Minor Rule Revisions, Clarifications, and Interconnection
Project Standards.
This item grants the Utilities Executive Director authority to approve temporary exemptions
or technical modifications to the City’s various electric utility regulations for the purpose of
supporting City-managed special pilot projects, equipment testing or research partnerships.
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This authority will not be extended to allow exemptions of such regulations and standards
to on going operations or services provided to Utility customers not participating in testing
or research projects.
16. First Reading of Ordinance No. 075, 2013, Authorizing the Purchasing Agent to Enter into
Standard Power Purchase Program Agreements with Solar Photovoltaic System Owners for
up to 20 Years.
Fort Collins Utilities’ Solar Power Purchase Program (FCSP3) encourages the installation
of new local solar systems on behalf of all Utilities customers in support of Fort Collins
renewable energy commitments under the Colorado Renewable Energy Standard (RES). The
basis of the FCSP3 is a fixed-price, 20-year Power Purchase Agreement (PPA) between Fort
Collins Utilities and photovoltaic system owners for solar energy generation. Program
funding was approved through the budget process. This action is necessary to authorize the
required long-term (20 year) purchase power agreements.
17. Resolution 2013-046 Making Findings of Fact and Conclusions Regarding the Appeal of the
February 25, 2013 Administrative Hearing Officer Approval of the 621 South Meldrum
Street Project Development Plan.
On February 13, 2013, an Administrative Hearing was held to consider approval of the 621
South Meldrum Street Project Development Plan and Modification of Standard to Section
3.2.2(J). The Hearing Officer issued a written decision on February 25, 2013 to approve the
proposed Project Development Plan and Modification of Standard, with two conditions. On
March 19, 2013, an Amended Notice of Appeal was filed by Alan, Eric and Walter Skowron.
On May 7, 2013, City Council voted 7 - 0 to uphold the decision of the Hearing Officer,
concluding that the evidence presented did not indicate the Hearing Officer failed to conduct
a fair hearing either by considering evidence relevant to the Hearing Officer’s findings
which was substantially false or grossly misleading or by failing to receive all relevant
evidence offered by the Appellants.
In order to complete the record regarding this appeal, Council should adopt a Resolution
making findings of fact and finalizing its decision on the Appeal.
18. Resolution 2013-047 Adopting the Recommendations of the Cultural Resources Board
Regarding Fort Fund Disbursements.
The Cultural Development and Programming and Tourism Programming accounts (Fort
Fund) provide grants to fund community events. This Resolution will adopt the
recommendations from the Cultural Resources Board to disburse these funds.
19. Resolution 2013-048 Authorizing the Lease of City-owned Property at 906 East Stuart Street
to Fort Collins Waldorf Education Association, Inc. for up to Two Years.
Since August 2006, the City has leased 906 East Stuart to Fort Collins Waldorf Education
Association, Inc., known as River Song Waldorf School. River Song Waldorf School
continues to meet the national Community Development Block Grant Funding (“CDBG”)
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criteria by serving a majority (51% or more) of low-moderate income clients below 80% of
the Area Median Income. This Resolution authorizes the lease of the property to River Song
Waldorf School for an additional two years.
20. Resolution 2013-049 Authorizing the Execution of the First Amendment to the
Intergovernmental Agreement Establishing the Boxelder Basin Regional Stormwater
Authority.
The Boxelder Basin Regional Stormwater Authority (BBRSA) was established by an
intergovernmental agreement (IGA) between the City of Fort Collins, Larimer County and
the Town of Timnath to fund and implement regional stormwater improvements.
Staff recommends approval of the first amendment to the IGA in order to:
• Obtain approval of the member governments for the BBRSA to accept a loan from
the Colorado Water Conservation Board (CWCB) to fund the design and
construction of the remaining projects;
• Authorize the BBRSA to determine and make minor revisions to properties within
the Service Area of the BBRSA by designating areas as “non-tributary areas”, and
to grant fee credits to other areas within the Service Area; and
• Establish a sunset provision such that upon completion of the Projects, payment of
all debt incurred by the Authority for the construction of the Projects, and agreement
among the Members as to any continuing obligation for operation and maintenance
of any Authority projects, the BBRSA can be terminated.
21. Resolution 2013-050 Nominating Mayor Karen Weitkunat as a Candidate for Re-election
to the Executive Board of the Colorado Municipal League.
This Resolution formally endorses the nomination of Mayor Karen Weitkunat as a candidate
to the Executive Board of the Colorado Municipal League. Mayor Weitkunat is an active
participant and continues to represent the City well as a member of the Colorado Municipal
League Executive Board.
***END CONSENT***
Ordinances on Second Reading were read by title by City Clerk Nelson.
7. Second Reading of Ordinance No. 066, 2013, Appropriating Prior Year Reserves and
Unanticipated Revenue in the General Fund for Cultural Development and Programming
Activities, Tourism Programming, and the Fort Collins Convention and Visitors Bureau.
8. Second Reading of Ordinance No. 067, 2013 Amending Resolution 2013-001, Ordinance
No. 006, 2013, and Ordinance No. 007, 2013, to Correct an Error in the Naming of the
Annexation as “Hansen Annexation” by Renaming the Annexation “Hansen Farm
Annexation.”
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27. Second Reading of Ordinance No. 057, 2013 Terminating the Moratorium Imposed by
Ordinance No. 145, 2012 with Respect to Oil and Gas Operations Conducted under an Oil
and Gas Operator Agreement Between the City and Prospect Energy, LLC and Exempting
Such Operations from the Prohibitions Contained in Section 12-135 of the City Code.
Ordinances on First Reading were read by title by City Clerk Nelson.
9. First Reading of Ordinance No. 069, 2013, Appropriating Prior Year Reserves in the Keep
Fort Collins Great Fund to Support the Landmark Rehabilitation Loan Program for 2013.
10. First Reading of Ordinance No. 076, 2013, Appropriating General Fund Reserves for the
Platte River Power Authority Transmission Line Relocation Project Located on the
Woodward Property.
11. First Reading of Ordinance No. 070, 2013, Amending Section 4-196 of the City Code so as
to Change the Violation of Interference with Animal Control Officers from a Civil Infraction
to a Criminal Misdemeanor Offense.
12. First Reading of Ordinance No. 071, 2013, Amending Section 19-65 of the City Code
Related to the Service of a Civil Citation.
13. First Reading of Ordinance No. 072, 2013, Amending Sections 19-36 and 19-41 of the City
Code Pertaining to Municipal Court Referees.
14. First Reading of Ordinance No. 073, 2013, Amending the City Code to Grant Revocable
Permits to Non-City Utilities in Annexed Areas and Correct Internal References.
15. First Reading of Ordinance No. 074, 2013, Amending the City Code to Authorize
Administrative Adoption of Minor Rule Revisions, Clarifications, and Interconnection
Project Standards.
16. First Reading of Ordinance No. 075, 2013, Authorizing the Purchasing Agent to Enter into
Standard Power Purchase Program Agreements with Solar Photovoltaic System Owners for
up to 20 Years.
Councilmember Overbeck withdrew Item No. 20, Resolution 2013-049 Authorizing the Execution
of the First Amendment to the Intergovernmental Agreement Establishing the Boxelder Basin
Regional Stormwater Authority, from the Consent Calendar.
Councilmember Cunniff withdrew Item No. 16, First Reading of Ordinance No. 075, 2013,
Authorizing the Purchasing Agent to Enter into Standard Power Purchase Program Agreements
with Solar Photovoltaic System Owners for up to 20 Years, from the Consent Calendar.
Councilmember Campana withdrew Item No. 19, Resolution 2013-048 Authorizing the Lease of
City-owned Property at 906 East Stuart Street to Fort Collins Waldorf Education Association, Inc.
for up to Two Years, from the Consent Calendar.
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Gary Wockner, 516 North Grant, withdrew Item No. 20, Resolution 2013-049 Authorizing the
Execution of the First Amendment to the Intergovernmental Agreement Establishing the Boxelder
Basin Regional Stormwater Authority, from the Consent Calendar.
Mayor Pro Tem Horak made a motion, seconded by Councilmember Overbeck, to adopt all items
not withdrawn from the Consent Calendar. Yeas: Campana, Horak, Weitkunat, Cunniff, Troxell and
Overbeck. Nays: none.
THE MOTION CARRIED.
Staff Reports
Poudre Fire Authority Chief Tom DeMint stated the wildland fire situation has improved
dramatically over the last couple months.
Captain Kelly Close provided additional details regarding the wildland fire forcast.
Councilmember Reports
Mayor Weitkunat reported on a Colorado Municipal League luncheon hosted by Fort Collins and
other Northern Colorado cities. She also reported the Airport Steering Committee is continuing
work on finding an airline provider for the Airport.
Ordinance No. 076, 2013,
Appropriating General Fund Reserves for the Platte River Power Authority Transmission
Line Relocation Project Located on the Woodward Property, Adopted on First Reading
The following is the staff memorandum for this item.
“EXECUTIVE SUMMARY
Council approved the Woodward incentive package in April 2013. As a part of that agreement,
Woodward agreed to advance funds to support the relocation of the Platte River Power Authority
(PRPA) Transmission Line. This Ordinance appropriates $1,297,080 from the General Fund
Reserves for the relocation of the PRPA transmission line. Immediate appropriation is needed to
allow the transmission line relocation to move forward so that Woodward's building site plans may
remain on schedule. Delay in authorizing the appropriation may necessitate the need for PRPA to
construct and remove a temporary transmission line as well as design and construct the relocated
permanent transmission line. This effort would require that PRPA incur additional costs.
BACKGROUND / DISCUSSION
On April 2, 2013, Council adopted Ordinance No. 056, 2013, Appropriating General Fund Reserves
to Fund a Reimbursement Reserve Fund in Connection with an Agreement between the City,
Downtown Development Authority (DDA) and Woodward, Inc., Regarding the Link-N-Green
Development. Ordinance No. 056, 2013, provided that Woodward would advance up to $6.05
million to the City, to be repaid by Pledged Tax Increment Revenues (“TIF”) to fund certain public
improvements, including right-of-way improvements and open space restoration, as well as the
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relocation of a power transmission line. Furthermore, in Ordinance No. 056, 2013, the City agreed
to appropriate $2.272 million for a reimbursement to the reserve fund to ensure the adequate
support for construction of the Improvements. Because the Woodward advance funds are not yet
available, City staff is requesting the immediate appropriation of $1,297,080 from City reserves in
order to allow the relocation of the transmission line to begin. The City funds will be reimbursed
by the Woodward advance.
On April 15, 2013, the City entered into an Intergovernmental Agreement (“IGA”) with PRPA,
which provided that the City of Fort Collins will pay for the relocation and installation of the
230/115kV transmission line that currently crosses the Woodward property (Attachment 1).
Design plans resulted in placing one new transmission tower in the Williams Natural Area just
south of the Mulberry/Lemay Avenue intersection and the removal of three transmission towers
northwest of Mulberry; two in the Springer Natural Area and one at the Water Reclamation natural
area. Ordinance No. 063, 2013, authorizing the necessary easements from the City, was adopted
on second reading on May 7, 2013.
Specifically, one pole will be added in the Williams Natural Area (reference pole #6, yellow line,
Attachment 2). The general size of the pole will be approximately 100 to 125 feet tall and 3 to 5 feet
in circumference at the base, depending upon the distance from pole #5. Placement will be
approximately 150 feet south of the existing bike trail and approximately 60 feet west of the sidewalk
that parallels south bound Lemay Avenue. Contingency placement will be known once the following
items are specified:
• Signal light/pole on the northwest corner of Mulberry and Lemay for the westbound traffic
on Mulberry
• Proposed restaurant placement at the southeast end of the Woodward Property
• New bike trail route across Lemay.
FINANCIAL / ECONOMIC IMPACTS
The transmission line relocation is a critical path component of the redevelopment of the new
Woodward site. Commitment from the City to PRPA is needed immediately so materials can be
secured to complete the project and avoid the need and cost of temporary transmission lines. Staff
is requesting an appropriation for $1,297,080 from the General Fund Reserve. Additional
appropriations will be forthcoming for the other portions of the project described above.”
Mike Beckstead, Chief Financial Officer, stated the change in this item is the source of funding for
the appropriation, which should be identified as unanticipated revenue per the contract between the
City and Woodward.
Mayor Pro Tem Horak made a motion, seconded by Councilmember Troxell, to adopt Ordinance
No. 076, 2013, as amended, on First Reading.
City Attorney Roy read the Ordinance amendments.
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Councilmember Cunniff asked if any type of contingency is built in if the cost goes over the
estimate. Beckstead replied in the affirmative and noted any additional dollars would belong to the
City, not PRPA.
The vote on the motion was as follows: Yeas: Horak, Weitkunat, Cunniff, Troxell, Overbeck and
Campana. Nays: none.
THE MOTION CARRIED.
Ordinance No. 075, 2013,
Authorizing the Purchasing Agent to Enter into Standard Power Purchase
Program Agreements with Solar Photovoltaic System Owners for
up to 20 Years, Adopted on First Reading
The following is the staff memorandum for this item.
“EXECUTIVE SUMMARY
Fort Collins Utilities’ Solar Power Purchase Program (FCSP3) encourages the installation of new
local solar systems on behalf of all Utilities customers in support of Fort Collins renewable energy
commitments under the Colorado Renewable Energy Standard (RES). The basis of the FCSP3 is a
fixed-price, 20-year Power Purchase Agreement (PPA) between Fort Collins Utilities and
photovoltaic system owners for solar energy generation. Program funding was approved through
the budget process. This action is necessary to authorize the required long-term (20 year) purchase
power agreements.
BACKGROUND / DISCUSSION
The basis of the FCSP3 is a fixed-price, 20-year Power Purchase Agreement (PPA) between Fort
Collins Utilities and photovoltaic system owners for solar energy generation. This arrangement is
commonly known within the solar industry as a “feed-in-tariff model.” The customer may enter
agreements with solar developers for the installation of the system, which also may include
financing, lease-purchase and rooftop property leasing.
The energy output of the solar system goes directly to Fort Collins Utilities’ electric grid and
customers are paid based on the metered output of the system, according to the PPA. The agreement
does not alter the customer’s electric bill. This approach is sometimes referred to as “in front of the
meter”, implying that the interconnection with the grid is on the utility side of the customer’s billing
meter. The PPAs also convey the Renewable Energy Credits (RECs)—the right to claim the
renewable energy attributes of a project—to Utilities to be used toward compliance with the
Colorado RES.
Expanding customer-sited solar renewable energy supports the community’s Climate Action Plan
and Energy Policy greenhouse gas reduction goals while supporting local investment.
Key Issues
Two key issues were discussed at length to arrive at the proposed program, (1) incentive pricing
approach and, (2) “in front of” vs. “behind” the meter. For the first issue, a competitive bidding
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approach to set offer prices was considered. After tracking the limited success of several other
utility programs that used a bidding approach, staff concluded that a standard price approach was
recommended. The recommendations related to the second key issue are based on balancing benefits
to all rate paying customers, participating customers and the solar industry. Customers understand,
and some have asked for the net metered approach because it provides for a “hedge” against future
utility price increases. While attractive to the participating customer, the “hedge” is an uncertain
financial element which is borne by all other ratepayers. The FCSP3 offers benefits to all rate
payers by obtaining renewable energy at a price competitive with other paths to RES commitments.
The FIT approach (“in front of the meter”) makes the offer simple and well defined for all parties
and limits uncertainty related to future electricity rates. The stable contract price provides financial
certainty for all parties and encourages partnerships between solar developers, host customer sites
and sources of financing.
The FCSP3 fact sheet is included as Attachment 1. Page three lists key attributes of the proposed
program along with the purpose and benefits of each attribute.
Renewable Energy Standard
The Colorado Renewable Energy Standard (RES) was originally established by voters as
Amendment 37, and has been modified by the Colorado legislature. Fort Collins’ commitments are
a minimum of 3% through 2014, 6% in 2015 and 10% in 2020.
Year Minimum Actual Electricity Amount
(megawatt-hours)
2012 3.0% 3.4% 53,000
2015 6.0% TBD 90,000
2020 10.0% TBD 150,000
Utilities current renewable energy commitments are met through a mix of wind energy projects,
renewable energy credits and local solar installations. Faced with making new investments in
renewable energy, Utilities proposed to meet a portion of its commitment through a program that
focuses on the installation of solar systems on local customers’ premises. Similar successful
programs are in place in a number of locations throughout the country and world.
It is important to note that voluntary renewable energy purchases through Utilities’ Green Energy
Program do not count towards the overall renewable energy commitments under the RES.
The 2015 renewable energy target corresponds to an increase from current renewable energy levels
of approximately 40,000 megawatt-hours (MWh). There are several ways Utilities could meet the
increased requirements, including:
1. Purchase of qualified renewable energy credits.
2. Wind energy, through development or participation in new utility-scale projects.
3. Solar energy, through development or participation in new utility-scale projects.
4. Solar energy, through a program which supports the installation of systems located locally
on customer premises (e.g., on Utilities’ electric distribution system).
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The RES includes the option to use “multipliers” that provide additional benefits based on
renewable energy technology and location. The RES multiplier for locally based solar energy is 3X,
meaning that solar energy produced counts three times towards the RES obligation. The multiplier
was designed to make solar energy investments competitive with wind energy investments.
The solar projects from this program are expected to generate approximately 7,500 megawatt-hours
annually. Utilizing the 3x multiplier, this amount will meet approximately 25 percent of the overall
renewable energy commitment for 2015 (50% of the additional 2015 gap). Additional resources will
still be required to meet the total 2015 commitment, and are expected to be met via additional
purchases from Platte River Power Authority.
Next Steps
Utilities will develop the application materials in order to open an initial application period in July
2013. A second application period will occur in the first quarter of 2014. All solar systems need
to be installed by July 2015 in order to meet the RES commitments.
Other Solar Options
Utilities also offers small-scale solar rebates with net metering and voluntary green energy
purchase options. Customers can visit fcgov.com/solar to view current programs that support solar
installations.
FINANCIAL / ECONOMIC IMPACTS
PPA purchases under the FCSP3 are to be capped at $1million per year funded by a 1/2% electric
rate increase in each of years 2013 and 2014. Funding commitments for these power purchases will
persist for the 20 year term of the agreements. At the end of the agreement term, Utilities will
consider the option to establish new agreements based on continuing needs for community
renewable energy.
The installation of approximately five megawatts of new solar energy within Fort Collins is also
expected to provide local economic benefits through the purchase and installation of the solar
systems. The distribution amongst local companies of on-going power purchase payments ($1million
annually) will depend upon the structure of agreements between customers, solar developers and
financial partners.
Under the preferential treatment by the Colorado RES of locally deployed solar electric generation,
these green power purchases are competitive with other alternatives (wind power) available
currently.
ENVIRONMENTAL IMPACTS
The solar projects from this program are expected to generate approximately 7,500 megawatt-hours
of electricity. Using current conversion factors, this will result in avoiding over 6,000 metric tons
of carbon emissions. The program will also greatly expand local generation, helping to support the
transition to a dynamic and distributed smart grid system. Successful program results may also
provide the groundwork for continued program expansion in future years.
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BOARD / COMMISSION RECOMMENDATION
Staff presented information about the program to the Energy Board at its regular meeting on May
2. The Board completed a memo (Attachment 2) which noted that, “The Energy Board has reviewed
the pilot program with staff and supports the overall objectives and proposed attributes. Therefore,
the Board requests City Council approve the Purchasing Manager be granted authority to energy
into 20 year agreements for the Fort Collins Solar Power Purchase Program.”
PUBLIC OUTREACH
Utilities began seeking feedback from business customers and solar industry stakeholders in
January. In addition to one-on-one meetings with key account customers, Utilities initiated an on-
line survey of business customers in April with 112 responses. Survey results indicated strong
interest in the program and general agreement with the overall goals (Attachment 3). Roughly half
of respondents indicate interest to participate.
The survey results and additional feedback were discussed at a public open house April 23rd,
attended by 28 people. Four key questions were:
• direct to grid program proposal versus benefits of net metering
• whether property tax will be assessed against the PV installations
• how businesses as building tenants might be able to participate
• how these systems will be treated at the head of the 20-year PPA term.
Solar industry feedback was solicited through the Colorado Solar Energy Industries Association
(COSEIA). Specific solar industry stakeholders also participated in the survey and open house.”
Lisa Rosintosky, Utilities Customer Connections Manager, introduced a presentation and noted this
item is related to the fixed-price 20-year power purchase agreement.
John Phelan, Energy Services Manager, stated the purpose of the program is to procure new locally-
installed solar capacity on behalf of all rate payers to help meet the community’s renewable energy
commitments to the Colorado Renewable Energy Standard (RES). He stated the specific action
before Council will authorize the purchasing agent to enter into 20-year agreements.
Eric Sutherland, 3520 Golden Currant, asked who sets the rates for this program and stated the item
should mention time of use.
Mike Pruznick, 636 Castle Ridge Court, questioned moving forward at this time and expressed
concern this may not be consistent with the upcoming PRPA 20-year plan.
Councilmember Cunniff asked whether the first come-first served method was considered versus
other methods which may be more beneficial and asked if there may be a way to structure this so
as to allow potential dovetailing with a beneficial PRPA program. Phelan stated the plan is to have
an application window and a lottery type of system will be used if there be more than enough
qualifying projects.
Councilmember Cunniff asked about the criteria for the projects. Phelan replied criteria are
currently being developed based on other successful programs around the country.
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Councilmember Cunniff asked about metering design considerations. Phelan replied these projects
will have a different set of interconnection requirements than the current small-scale systems.
Councilmember Cunniff asked about the 20-year term. Phelan replied there is a time limit to take
advantage of the multipliers embedded in the original Amendment 37 and subsequent legislation for
the Colorado RES and this is only a small piece of an overall renewable energy program.
Councilmember Troxell made a motion, seconded by Councilmember Campana, to adopt Ordinance
No. 075, 2013, on First Reading.
Councilmember Cunniff supported the concept but requested staff responses to questions prior to
Second Reading.
Councilmember Troxell stated this item contributes to additional distributed energy resources. He
supported a time of use approach.
Mayor Pro Tem Horak noted the Energy Board strongly recommended this item for approval.
The vote on the motion was as follows: Yeas: Weitkunat, Campana, Overbeck, Cunniff, Horak and
Troxell. Nays: none.
THE MOTION CARRIED.
Resolution 2013-048
Authorizing the Lease of City-owned Property at 906 East Stuart Street to Fort Collins
Waldorf Education Association, Inc. for up to Two Years, Adopted
The following is the staff memorandum for this item.
“EXECUTIVE SUMMARY
Since August 2006, the City has leased 906 East Stuart to Fort Collins Waldorf Education
Association, Inc., known as River Song Waldorf School. River Song Waldorf School continues to
meet the national Community Development Block Grant Funding (“CDBG”) criteria by serving a
majority (51% or more) of low-moderate income clients below 80% of the Area Median Income.
This Resolution authorizes the lease of the property to River Song Waldorf School for an additional
two years.
BACKGROUND / DISCUSSION
The property at 906 East Stuart was acquired by the City in 1985 for use as a child care facility.
CDBG funding was used to purchase the property. City properties purchased with CDBG funding
are restricted to a nominal rental rate and must be used by non-profit organizations that meet the
CDBG criteria.
906 East Stuart was a private residence at the time of purchase. The building contains a total of
2,071 square feet. The ground floor contains 1,687 square feet and is the main area of use for the
school. The second floor, containing 384 square feet, is only accessible from an outside stairway
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entrance and is used for its office area and storage. The lot size is 0.3 acres. The condition of this
facility is fair.
River Song Waldorf School has been leasing the property since August 2006. It operates a year-
round early childhood program, and other associated uses, for pre-kindergarten children.
Due to the requirements from CDBG, the rent for this facility is $5 per year. The market rent would
be $1,200 to $1,350 per month if this property was rented as a private residence. The tenant is
responsible for utilities, maintenance, and improvements. The City is not responsible for any
maintenance expense during the lease. River Song Waldorf School has been a good tenant and has
taken good care of the property. In addition to its routine maintenance expenses, it has also
replaced the furnace and painted the exterior at its cost.
FINANCIAL / ECONOMIC IMPACTS
The Tenant is responsible for all maintenance, repair, and necessary upgrades, including, but not
limited to, all landscaping maintenance and upkeep (including trees), snow removal, interior and
exterior painting, appliances, building systems upkeep, etc. The Tenant pays all utility costs. The
Tenant pays $5 per year to the City for leasing the property.”
Councilmember Campana withdrew from the discussion of this item due to a conflict of interest.
Mayor Pro Tem Horak made a motion, seconded by Councilmember Overbeck, to adopt Resolution
2013-048. Yeas: Cunniff, Troxell, Overbeck, Horak and Weitkunat. Nays: none.
THE MOTION CARRIED.
Resolution 2013-049
Authorizing the Execution of the First Amendment to the Intergovernmental Agreement
Establishing the Boxelder Basin Regional Stormwater Authority, Adopted
The following is the staff memorandum for this item.
“EXECUTIVE SUMMARY
The Boxelder Basin Regional Stormwater Authority (BBRSA) was established by an
intergovernmental agreement (IGA) between the City of Fort Collins, Larimer County and the Town
of Timnath to fund and implement regional stormwater improvements.
Staff recommends approval of the first amendment to the IGA in order to:
Obtain approval of the member governments for the BBRSA to accept a loan from the Colorado
Water Conservation Board (CWCB) to fund the design and construction of the remaining projects;
1. Authorize the BBRSA to determine and make minor revisions to properties within the Service
Area of the BBRSA by designating areas as “non-tributary areas”, and to grant fee credits
to other areas within the Service Area; and
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• Establish a sunset provision such that upon completion of the Projects, payment of
all debt incurred by the Authority for the construction of the Projects, and agreement
among the Members as to any continuing obligation for operation and maintenance
of any Authority projects, the BBRSA can be terminated.
BACKGROUND / DISCUSSION
On August 20, 2008, the City of Fort Collins, Larimer County and the Town of Wellington entered
into an intergovernmental agreement (IGA) to establish the Boxelder Basin Regional Stormwater
Authority (BBRSA). The BBRSA was established to fund and implement the regional stormwater
improvements outlined in the Boxelder Regional Stormwater Master Plan. The stormwater
improvements benefit the citizens of Fort Collins through protection of the health, property, safety
and welfare of the city and by enhancing the ecological health of Boxelder Creek.
It is in Fort Collins’ best interests to participate in the BBRSA in order to:
• Make already cost effective improvements more economical by sharing costs;
• Reduce substantial public infrastructure costs for road crossings;
• Equitably share the cost between participating agencies;
• Provide economic benefits by removing undeveloped lands from the 100-Year floodplain;
and
• Provide a cooperative approach that initiates solutions to stormwater problems in Fort
Collin’s Growth Management Area (GMA).
The BBRSA has completed the design and construction of the Coal Creek Flood Mitigation Project
and has preliminarily designed the two remaining regional stormwater projects which consist of the
East Side Detention Facility (also known as the Gray Lakes Project) and the Larimer/Weld Canal
Crossing Structure. Timnath (in conjunction with its TDA) has entered into an Intergovernmental
Authority with the BBRSA to participate in the funding of the remaining projects.
The BBRSA investigated potential funding scenarios (i.e., pay-as-you-go, bonding, loan) and
initially recommended in 2011 to the member entities that a bonding approach be pursued. After
additional research, the BBRSA determined the most cost efficient method of funding the regional
stormwater projects is by obtaining a loan through the Colorado Water Conservation Board
(“CWCB”). According to Section 2.05 (f) of the IGA, all member entities must agree to the issuance
of debt by the BBRSA.
On January 17, 2013, representatives from Fort Collins, Larimer, Wellington and Timnath as well
as the BBRSA Board of Directors met to discuss the latest estimated regional stormwater project
cost estimates, the funding approach, a potential sunset provision, the BBRSA stormwater fee
structure, and potential revisions to the BBRSA service area boundary. As a result of those
discussions, the BBRSA developed a draft amendment to the IGA that will:
• Allow the BBRSA to accept a loan from the CWCB to fund the design and construction of
the remaining projects; and
• Authorize the BBRSA to determine and make minor revisions to properties within the Service
Area of the BBRSA by designating areas as “non-tributary areas”, and to grant fee credits
to other areas within the Service Area; and
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• Establish a sunset provision such that upon completion of the Projects, payment of all debt
incurred by the Authority for the construction of the Projects, and agreement among the
Members as to any continuing obligation for operation and maintenance of any Authority
projects, the BBRSA can be terminated.
FINANCIAL / ECONOMIC IMPACTS
The BBRSA has preliminarily designed the East Side Detention Facility (Gray Lakes Project) and
the Larimer/Weld County Crossing Structure. These are the two remaining projects needed to meet
the goals of the Boxelder Regional Stormwater Master Plan. Through preliminary design, the total
cost of the two projects is estimated to be approximately $9.9 million. The most cost efficient
method of funding the projects (and lowest interest rate) is by obtaining a loan through the CWCB.
The anticipated interest rate of 2.75% for the CWCB loan is significantly lower than an estimated
interest rate of 4.0% for issuance of bonds. The BBRSA will obtain a 20-year loan; however, it may
be possible to pay it off in a shorter time period (16-17 years). The loan requires a 10% local
match, which will be the responsibility of the BBRSA.
In addition to the revenue generated by stormwater fees within the BBRSA service area boundary,
the BBRSA has also obtained funding from Timnath. The BBRSA entered into an intergovernmental
agreement (Boxelder/Timnath IGA, dated November 15, 2012) with Timnath and its TDA which
provides that the TDA shall participate in the funding of the projects. Pursuant to the
Boxelder/Timnath IGA, the TDA has transferred $500,000 to the BBRSA for use in the design of the
remaining projects. In addition, the TDA will reimburse the BBRSA for 25% of the total costs of the
remaining projects. The financial participation by Timnath results in a decrease in the amount of
revenue required to be collected by the BBRSA.
The combination of annual stormwater service fee revenue collected by the BBRSA and the financial
contribution from Timnath provides sufficient funding to cover the on-going costs of the BBRSA and
the CWCB loan payment.
ENVIRONMENTAL IMPACTS
The IGA contains language that ensures a holistic approach toward stormwater quality best
management practices, stream stability, and habitat enhancement. Through reconfiguration of the
master plan improvements, most notably increased detention storage at the Gray Lakes Detention
Project, the BBRSA is able to eliminate the majority of Middle Basin improvements proposed in the
original Boxelder Regional Stormwater Master Plan. As a result, the need to grade or alter the
majority of Boxelder Creek south of County Road 50 has been eliminated, thereby protecting the
existing stream corridor.
Ken Sampley, Stormwater/Floodplain Program Manager, provided an overview of the Boxelder
Basin Regional Stormwater Authority. He provided information regarding the benefit-cost scenario
for the project.
Gary Wockner, 516 North Grant, stated this taxing Authority was narrowly approved after a
contentious discussion and argued this would subsidize housing development in the area of Fort
Collins that is proposed to undergo hydraulic fracturing. He requested that Councilmember
Campana recuse himself from the vote if he owns any property in the area.
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Councilmember Overbeck stated this storm line would go through the UDA area near the Budweiser
plant, which is an area of contention.
Councilmember Overbeck requested additional details regarding the financing package. Sampley
replied the loan package is at approximately a 2.5% interest rate. The financing rate structure is
lower than it would be through a bond sale so it is beneficial for the government sponsors and for
those paying the fees. He stated it is a 20-year loan commitment, though that will hopefully be paid
off sooner.
Councilmember Overbeck asked what kinds of rates could be attained in the private bond market.
Sampley replied it would likely be around 4%.
Councilmember Troxell made a motion, seconded by Councilmember Campana, to adopt Resolution
2013-049.
Mayor Weitkunat commented that this is a cooperative effort to bring forward a solution to
stormwater and flooding issues on the eastern side of I-25.
Councilmember Campana commented that he does not own property in this area.
Councilmember Overbeck stated this project has some positive aspect in terms of environmental
safety; however, he stated he would oppose this item as the project could be financed in the private
bond market rather than using taxpayer funding.
Councilmember Cunniff stated oil and gas development in this area would be in direct conflict with
any development.
Councilmember Troxell stated he would support the motion as the item addresses stormwater issues
within the City.
The vote on the motion was as follows: Yeas: Troxell, Campana, Horak and Weitkunat. Nays:
Overbeck and Cunniff.
THE MOTION CARRIED.
Consideration of an Appeal of the Planning and Zoning Board’s March 21, 2013
Decision to Approve the Carriage House Apartments, Project
Development Plan, Planning and Zoning Board Decision Upheld
The following is the staff memorandum for this item.
“EXECUTIVE SUMMARY
On March 21, 2013, the Planning and Zoning Board considered and unanimously approved the
application for the Carriage House Apartments, Project Development Plan. The application
consisted of a request to demolish two existing single family homes at 1305 and 1319 South Shields
Street and in their place, construct five, three story multi-family buildings, with a total of 57 units
divided among one, two and three-bedroom apartments for a total of 97 bedrooms. The project is
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located in the Neighborhood Conservation Buffer (N-C-B) Zone District and is within the Transit-
Oriented Development (TOD) Overlay District.
On April 4, 2013, Joel Rovnak (Appellant) filed a Notice of Appeal, alleging that the Planning and
Zoning Board failed to conduct a fair hearing because it allegedly considered evidence that was
substantially false and grossly misleading when approving the Project Development Plan
application.
BACKGROUND / DISCUSSION
The Applicant submitted a traffic impact study as part of the Carriage House Apartments Project
Development Plan application and the traffic impact study was accepted by the City Traffic
Engineer. The traffic impact study was provided to the Planning and Zoning Board as an attachment
to the staff report for consideration.
The staff report to the Board included analysis of how the Project Development Plan complied with
the Land Use Code’s transportation Level of Service requirements (Staff Report, pg. 10).
Under the appeals procedure contained in the City Code, the appeal is required to be considered
upon the record, the relevant provisions of the Code and Charter, the grounds for appeal cited in
the notice of appeal and the arguments made by parties-in-interest at the hearing on the appeal,
provided the arguments raised by parties-in-interest were raised in the notice of appeal.
The City Code allows for new evidence to be considered when offered by City staff or parties-in-
interest in response to questions presented by Councilmembers at the hearing. Staff is prepared to
answer questions regarding the allegations on appeal, if asked by Councilmembers.
ACTION OF THE PLANNING AND ZONING BOARD
After testimony from the Applicant, affected property owners, the public and staff, the Planning and
Zoning Board voted 6 - 0 to approve the Carriage House Apartments Project Development Plan
application with conditions.
In support of its motion to approve the Carriage House Apartments Project Development Plan, the
Board adopted the findings of fact and conclusions as contained on page 13 of the staff report.
QUESTIONS FOR COUNCIL CONSIDERATION
Did the Planning and Zoning Board fail to hold a fair hearing by considering evidence relevant to
its findings which were substantially false or grossly misleading?
ALLEGATIONS ON APPEAL
1. The traffic impact study falsely attributes data to the Institute of Transportation Engineers
(ITE) Trip Generation Manual.
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The Appellant maintains that the Planning and Zoning Board considered the traffic impact study
which contained information relating to estimated trip generation which was substantially false and
grossly misleading.
The traffic impact study was included in the Planning and Zoning Board’s packet for consideration
in its decision making, although the Board did not discuss the specific details of the traffic impact
study in connection with its decision to approve the Project Development Plan.
Staff has prepared information regarding the data contained in the traffic impact study and is able
to answer questions regarding this allegation if asked by Council.
2. Traffic projections were further reduced for alternative modes of transportation.
In the notice of appeal, the Appellant asserts that the information contained in the traffic impact
study was further skewed by a 25% reduction in trips to account for alternative modes of
transportation.
The traffic impact study was included in the Planning and Zoning Board’s packet for consideration
in its decision making, although the Board did not discuss the 25% trip reduction contained in the
study in connection with its decision to approve the Project Development Plan.
Staff has prepared information regarding the 25% trip reduction contained in the traffic impact
study and is able to answer questions regarding this allegation if asked by Council.
3. Fort Collins Traffic Operations has established a policy that discriminates against student
housing.
The Appellant asserts that the City and/or the traffic consultant used a recent study of student
housing trip generation in Minnesota (Spack Memorandum) to estimate trips for the Carriage House
Apartments.
The Spack Memorandum was provided to the Planning and Zoning Board at its hearing for
consideration, although the Board did not discuss the details of the Spack Memorandum during the
hearing or in connection with its decision to approve the Project Development Plan.
Staff has prepared information regarding the Spack Memorandum and is able to answer questions
regarding this allegation if asked by Council.
4. City Council has established policies prohibiting discrimination in multi-family housing.
The Appellant asserts that the submitted traffic impact study was flawed because of the use of
standards used in outside municipalities that relate to student oriented housing.
The traffic impact study and the Spack Memorandum were provided to the Planning and Zoning
Board for consideration in its decision, however the Board did not discuss the Spack Memorandum
or specifics of the Traffic Impact Study during the hearing or in connection with its decision to
approve the Project Development Plan.
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Staff has prepared information regarding the submitted traffic impact study and is able to answer
questions regarding this allegation if asked by Council.
5. The negative impacts of artificially reduced traffic projections extend beyond a single
proposal.
The Appellant asserts that the adjusted trip generation estimates used in traffic impact studies was
also prevalent in other project approvals and have a negative impact. The Appellant also maintains
that the flawed trip generation will negatively impact Street Oversizing fees collected.
The Planning and Zoning Board did not discuss the impact of trip generation rates contained in the
submitted traffic impact study during the hearing or in connection with its decision to approve the
Carriage House Apartments Project Development Plan.
Staff has prepared information regarding trip generation impacts and Street Oversizing fees and
is able to answer questions regarding this allegation if asked by Council.
COUNCIL ACTION REQUESTED
Review the record and determine if the decision of the Planning and Zoning Board to approve the
Carriage House Apartments Project Development Plan should be upheld, overturned, modified, or
remanded to the Board for further consideration.”
Councilmember Campana withdrew from the discussion of this item as he was a member of the
Planning and Zoning Board when the project came before that Board.
City Attorney Roy described the City’s appeal process.
Councilmember Overbeck stated he attended the site visit.
Councilmember Troxell stated he attended the site visit and asked the Traffic Engineer about the
outcome of the traffic study which showed no need for a signalized intersection at Shields.
Councilmember Cunniff stated he attended the site visit and asked questions about the physical
layout of the site.
Courtney Levingston, City Planner, stated the proposed project would demolish the existing single-
family homes located at 1305 and 1319 South Shields Street and construct five multi-family
buildings in their place. The 4.8 acre site is in the Neighborhood Conservation Buffer District and
is within the Transit Oriented Development Overlay District. Levingston stated the project was
approved by the Planning and Zoning Board on a 6-0 vote and she discussed the allegations of the
appeal which were primarily related to the failure of the Board to appropriately discuss traffic study
implications.
APPELLANT PRESENTATION
Joel Rovnak, 1308 Bennett Road, stated his appeal is based on the trip generation calculation of the
project. He provided traffic counts for apartment buildings and extrapolated that data to the
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proposed project. He stated the equation used in the traffic study used a much lower rate than it
should have and the predicted trips were then reduced by 25% due to alternative modes. He
requested that the item be remanded to the Planning and Zoning Board using trip generation rates
that adhere to the Land Use Code.
OPPONENT PRESENTATION
Carolyn White, counsel for the opponents to the appeal, argued no misleading evidence was
presented at the original hearing, with the exception of that presented by Mr. Rovnak, which was
considered by the Board. She noted this project was compliant with the Land Use Code in all
respects with no modifications sought and discussed the voluntary concessions made by the
developer to aid in neighborhood concerns. She stated Mr. Rovnak’s conclusions were flawed based
on confusion between the use of bed versus dwelling units as the unit of measurement.
Matt Delich, Delich Associates, stated the traffic impact study (TIS) was prepared per City
guidelines and was accepted by City staff. He stated the most accurate trip generation variable for
student housing is beds, not dwelling units, and discussed the apparent confusion in Mr. Rovnak’s
analysis. Mr. Delich discussed the conservative nature of the traffic generation analysis in the traffic
impact study.
Ms. White stated all of the allegations raised in the appeal are without merit and she requested that
Council uphold the decision of the Planning and Zoning Board approving the project.
APPELLANT REBUTTAL
Mr. Rovnak assured Council his calculations did not confuse beds and dwelling units; he simply
offered calculations using both units to illustrate they both yield low numbers of trip generation.
He noted the letter to him from the City Traffic Engineer clearly indicates the use of consideration
of student housing.
OPPONENT REBUTTAL
Ms. White stated the way Mr. Rovnak plugged the data into the equation was not correct.
Mr. Delich stated the oversizing fees discussed by Mr. Rovnak are calculated by a different City
department and are not based on the traffic impact study.
COUNCIL DISCUSSION
Mayor Weitkunat requested staff input regarding the calculation based on beds versus dwelling units
and the City’s position on multi-family housing versus student housing. Joe Olson, City Traffic
Engineer, replied he spoke before the Student Housing Action Plan committee to discuss trip
generation, at which meeting the variable of dwelling units being used for student housing projects
was discussed. He stated the committee had suggested the use of beds rather than dwelling units
in order to garner more accurate data and added the correct variables were used with the correct
equations in Mr. Delich’s traffic impact study.
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Mayor Weitkunat asked if any of the information provided this evening was presented at the
Planning and Zoning Board hearing. Olson replied the traffic impact study was submitted at the
hearing.
Councilmember Troxell asked about the level of experience of Delich Associates. Mr. Delich
replied he has forty-five years of experience and his son, Joe, has thirteen years of experience and
a Professional Engineering degree, which requires standards of excellence and due diligence.
Additionally, he stated both he and his son are Professional Transportation Operation Engineers.
Councilmember Troxell asked why the state licenses engineers. Mr. Delich replied the licensing
is necessary to provide responsibility for work completed.
Councilmember Troxell asked if Mr. Rovnak had involved a Professional Engineer in his analyses.
Mr. Rovnak replied in the negative.
Councilmember Troxell noted the importance of the Professional Engineering certification in this
instance.
Councilmember Cunniff asked if multiple traffic impact studies were received by the Planning and
Zoning Board. Olson replied in the negative. Levingston replied the Traffic Impact Study prepared
by Mr. Delich was part of the information received by the Board and additional information was
provided at the hearing by Mr. Rovnak.
Mayor Weitkunat asked about the 25% reduction in trip generation for alternative modes and
whether or not that is a general City policy. Olson replied there is an initial scoping session for any
traffic impact study during which a discussion is held as to whether or not a project should receive
a reduction in trip generation.
Mayor Pro Tem Horak asked about the specific 25% amount. Olson replied it is an estimate and is
the typical amount used for multi-family housing near campus or other activity centers, although it
is calculated on a case-by-case basis.
Councilmember Cunniff asked what part of campus is used when it is considered an activity center.
Olson replied there is no set distance and estimates are used to gain approximate numbers of trip
generation.
Mayor Pro Tem Horak asked about the impact of not using the 25% reduction. Olson replied not
using that reduction would not have had much impact on the requirements for the project; the level
of service at the affected intersection would have remained essentially the same.
Mayor Pro Tem Horak asked what the Planning and Zoning Board would be looking at differently
should the item be remanded. Olson replied some of these issues that have caused confusion would
be clarified.
Councilmember Troxell made a motion, seconded by Mayor Weitkunat, to uphold the Planning and
Zoning Board’s decision to approve the Carriage House Apartments Project Development Plan and
that the Board conducted a fair hearing.
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Councilmember Cunniff expressed concern that the process in general is not as straight forward as
it should be, though he does not believe an unfair hearing occurred.
Mayor Weitkunat stated she is supportive of the motion based on the evidence heard and noted the
issues raised at the Planning and Zoning Board hearing were generally focused on other aspects of
the project.
Mayor Pro Tem Horak noted staff and the Planning and Zoning Board found the traffic impact study
to be appropriate and properly calculated and there was no grossly misleading evidence considered
at the hearing.
The vote on the motion was as follows: Yeas: Weitkunat, Horak, Cunniff, Overbeck and Troxell.
Nays: none.
THE MOTION CARRIED.
(Secretary’s note: The Council took a brief recess at this point in the meeting.)
Items Relating to the Oil and Gas Operator Agreement Between the City and Prospect
Energy, LLC. (Continued from April 23, 2013), Adopted on Second Reading (Option 3)
The following is the staff memorandum for this item.
“EXECUTIVE SUMMARY
A. Resolution 2013-036 Approving an Amendment to the Oil and Gas Operator Agreement
Between the City and Prospect Energy, LLC (Options 1, 2 and 3).
B. Second Reading of Ordinance No. 057, 2013 Terminating the Moratorium Imposed by
Ordinance No. 145, 2012 with Respect to Oil and Gas Operations Conducted under an Oil
and Gas Operator Agreement Between the City and Prospect Energy, LLC and Exempting
Such Operations from the Prohibitions Contained in Section 12-135 of the City Code
(Options 1, 2 and 3).
On March 19, 2013, Council approved an Operator’s Agreement with Prospect Energy to conduct
oil and gas operation in the city limits. The terms of the Agreement ensure stringent public health
and safety measures are in place through Best Management Practices (BMPs), which generally
exceed current requirements mandated by the Colorado Oil and Gas Conservation Commission
(COGCC), and provide strict controls on the release of methane gases and other volatile organic
compounds (VOCs). The Council also adopted on First Reading, Ordinance No. 057, 2013, by a vote
of 5-1 (nays: Ohlson, absent: Poppaw), removing the Moratorium imposed by Ordinance No. 145,
2012, with respect to an Oil and Gas Operator Agreement with Prospect Energy.
• Option #1- Amended Operator Agreement Resolution 2013-036
Resolution 2013-036 will further amend the Operator’s Agreement with Prospect Energy to clarify
that (1) no new drilling will occur in any plugged or abandoned well in the Fort Collins Field and
that (2) all Colorado Oil and Gas Conservation Commission rules to be effective August 1, 2013 will
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apply to any exploration and drilling activities in the Undeveloped Acreage (UDA), and (3) along
the west and southern boundaries of the UDA, a 1,000 foot set-back shall be required from any
residential area in accordance with COGCC standards of measurement, and (4) the Amended
Agreement must be approved by Council and in effect on or before June 1, 2013.
• Option #2 – Amended Operator Agreement Resolution 2013-036
Limit the Agreement to the Fort Collins Field by removing UDA from the Operator Agreement and
prohibit re-entry into plugged and abandoned wells.
While the Whereas clauses for Options #1 and #2 have changed substantially, the substance of the
Operator Agreement in Options #1 and #2 is the same, with the exception that the Agreement needs
to be executed by June 1 instead of June 15.
• Option #3 – Amended Operator Agreement Resolution 2013-036
Resolution 2013-036 will further amend the Operator’s Agreement with Prospect Energy to include
some options in Option #1 plus the following (1) certain portions of the Agreement apply to existing
wells within the City limits of the Fort Collins Field , and that (2) will insure any wells drilled in the
UDA from the initial drilling phase through completion will be required to have a $10,000,000 per
occurrence policy that covers Pollution and Cleanup, and General Liability, that (3) increased
setbacks will be required in certain areas of the UDA, and that (4) the Amended Agreement must
be approved by Council and take effect on or before June 1, 2013.
BACKGROUND / DISCUSSION
During Council discussion on March 19, 2013, questions arose regarding the inclusion of
Undeveloped Acreage (UDA) in the Operator Agreement. Staff responded incorrectly as to when
staff was aware of the UDA. The UDA was disclosed on March 1, 2013. Staff received the first
Operator Agreement that included the UDA on March 7, 2013.
Council further inquired as to how development of the UDA may occur. Generally, Prospect Energy
is limited to the terms and conditions contained in a confidential Surface Use Agreement (SUA) with
Anheuser-Busch, Incorporated signed in April 2011. According to the Larimer County mineral
lease notice (Attachment 4), the SUA is for a primary term of three years expiring March 2014. If,
at the expiration of the Primary Term of the SUA, lands not then included within a producing or
spacing unit are not engaged in drilling or reworking operations, then the lease expires. According
to the notice, an option to extend the agreement for an additional three years is available if Prospect
Energy makes an additional payment.
In addition to any requirements imposed by the SUA, any oil and gas development would be
required to comply with the Council-approved Operator Agreement. A key aspect of the Agreement
requires the following:
Conceptual Review – No less than thirty (30) days prior to the submission of an Application for a
Permit to Drill (APD) (note: APD is the Colorado Oil and Gas Conservation Commission (COGCC)
permitting process), Prospect Energy will schedule a meeting with the City to review the proposed
new well or drilling activity. The goal of this meeting would be for staff and the applicant to review
the proposed oil and gas operation in a manner that ensures compliance with the operator
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agreement and applicable state and federal regulations. This pre-submittal meeting will also allow
the applicant and staff to:
• explore site-specific concerns
• discuss project impacts and potential mitigation methods including field design and
infrastructure construction to minimize impacts
• discuss coordination of field design with other existing or potential development and
operators
• identify sampling and monitoring plans for air and water quality, and other elements of the
operator agreement as contained in Exhibit A (Best Management Practices).
Option #3 Amendment Conditions
Staff was asked to further negotiate with Prospect Energy on the following conditions:
1. Would Prospect Energy agree to adhere to the Best Management Practices (BMP) contained
in the Operator Agreement for existing wells in the Fort Collins Field?
Prospect Energy is willing to apply certain BMP’s to the Fort Collins Field for wells contained
in the City Limits provided that any existing wells in the Growth Management Area (GMA) are
exempt. Prospect Energy has agreed in whole or in part to 22 of 48 sections of the BMPs; see
Attachment 8 for details. 18 of the 48 sections of the BMPs do not apply so Prospect Energy has
agreed to 22 of the 30 sections that apply to the existing field.
2. Would Prospect Energy increase insurance provisions?
Prospect Energy agrees to provide liability insurance that covers pollution, cleanup and general
liability in the amount of $10,000,000 per occurrence during the initial drilling of a New Well
through completion. Following completion, Prospect Energy will provide ongoing pollution,
cleanup and general liability coverage in the amount of $1,000,000 per occurrence and
$2,000,000 aggregate, and general liability umbrella coverage in the amount of $5,000,000.
3. Would Prospect Energy agree to increase the set-backs to 2000 feet rather than 1000 feet
along the southern and western boundaries of the UDA?
Prospect Energy agrees to increase set-backs for certain portions of the UDA as described in
Exhibit C; 1500 feet from the proposed school lease line and 1000 feet from the lease lines where
residential or building units exist (see Attachment 6).
4. Would Prospect Energy agree to increased inspections by the City?
The Agreement, Appendix A, Number 8 already provides the City with the right to inspect the
Company’s operations and sites during business hours, upon the giving of 24 hours advance
written notice to the Company. Staff believes this is sufficient to allow for any inspection in
addition to what COGCC may provide.
5. Would Prospect Energy allow additional monitoring or alert systems to be placed within the
Fort Collins Field or in the UDA?
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Prospect Energy is unable to commit to any property uses within the Fort Collins Field or the
UDA as they are not the property owners. Staff believes that there would be other public or
private property options available if Council wishes to consider this monitoring at a future date.
Prospect Energy has indicated that if Option #3 is not approved on May 21, 2013 they will withdraw
the option.
Staff was also asked to respond to citizen questions by preparing a list of questions and answers,
and then post them on the Oil and Gas Web-site (http://www.fcgov.com/oilandgas/) for easy access
by the public. This was completed on May 7, 2013 and subsequently updated to include questions
answered during the Oil and Gas Presentation held May 8, 2013.
Council asked staff to hold a community meeting specifically providing an opportunity for those
residents who may be most affected by an Operator Agreement with Prospect Energy to an
informational meeting. An invitation was extended to approximately 3,000 residents to attend such
a meeting on May 8, 2013 at the Lincoln Center. At least 120 persons attended the event which
included informational table displays with opportunities to ask questions of project team members,
a presentation outlining the proposed agreement and possibility to exempt Prospect Energy from
a City Moratorium prohibiting any new oil and gas development and ban from new drilling and
operations conducted by Prospect Energy in the Fort Collins Field (city limits) and the UDA.”
Mayor Weitkunat noted Resolution 2013-036 will be considered first.
Laurie Kadrich, Community Development and Neighborhood Services Director, stated adoption of
Ordinance No. 057, 2013 on Second Reading would remove Prospect Energy from a moratorium
on new drilling and allow the company to use hydraulic fracturing in their operations. Given
adoption of this Ordinance, Council will have the option to leave the current operator agreement in
place or amend that agreement in one of three ways as presented by staff. Kadrich showed a map
of the Fort Collins Field and the undeveloped area (UDA), for which Prospect Energy owns the
drilling rights. The current agreement applies to any new well in the city limits of the Fort Collins
Field or the UDA, and may apply in the Growth Management Area if the City and County reach
agreement about that issue. Kadrich detailed the community outreach which has occurred prior to
tonight’s meeting and outlined the choices for Council consideration. Option #1 would amend the
agreement to include greater setback requirements on the southern and western boundaries of the
UDA to 1,000 feet and would prohibit any reentry into the plugged and abandoned wells in the Fort
Collins Field. Prospect Energy agrees to this option and the timeframe to act would be June 1, 2013.
Option #2 would amend the agreement to remove the UDA from the agreement and disallow any
reentry into plugged and abandoned wells in the Fort Collins Field. Prospect Energy will not enter
into an amended agreement including only the Fort Collins Field. Option #3 would amend the
agreement to include greater setback requirements in the UDA along the area that there may be a
future school, would prohibit reentry into the plugged and abandoned wells in the Fort Collins Field,
would add certain best management practices to the existing wells in the Fort Collins Field in the
city limits, and would increase insurance provisions during the time of drilling for the UDA.
Prospect Energy is willing to agree to this option if it is adopted this evening; however, they have
indicated they will withdraw the option from future consideration.
Danny Hesser, 2133 Ford Lane, expressed concern regarding potential health risks of drilling and
supported a ban on operations.
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Maya Hesser, 2133 Ford Lane, stated mineral rights should not take precedent over health and safety
of citizens.
Matthew Martinez, Fort Collins resident, expressed concern regarding potential health risks of oil
and gas operations.
Dian Sparling, 324 Jackson, expressed concern regarding endocrine disruptors which result from
spills at oil and gas wells. She requested protection for the health of citizens until studies are
complete regarding the dangers of drilling.
Kelly (no last name provided), stated no health studies will be complete until 2020 and expressed
concern regarding potential health risks of drilling and fracking. She requested Council enforce the
ban on Prospect Energy.
Andrew Stewart, 2503 Maple Hill, stated best management practices need to be adopted and stated
air and water can be treated to be safe.
Brigitte Schmidt, 932 Inverness, requested Council receive an agreement from the operator that they
will work with the County to complete an operator agreement within the growth management area.
Nick Armstrong, 2238 Ballard Lane, stated Prospect Energy will basically be self-regulating.
Kevin Cross, Fort Collins Sustainability Group, supported a continued ban on all fracking, and
supported Option #2.
John Gascoyne, 718 West Mountain, stated citizens should be protected and should not fear
litigation.
Cheryl Distaso, Fort Collins Community Action Network, supported Option #2 and questioned the
process regarding the late revised agenda.
Kamana Hesser, 2133 Ford Lane, expressed concern regarding the health risks of drilling.
Dolores Williams, 415 Mason Court, expressed concern about Prospect Energy making litigation
threats and opposed the use of fracking until it is proven safe.
Chris Gabar, Fort Collins resident, stated France has banned fracking and requested protection from
fracking for Fort Collins.
James Sack, Fort Collins resident, expressed concern about Prospect Energy making litigation
threats.
Karen Snyder, Fort Collins resident, supported the most strict, protective option and the continuance
of the ban on fracking.
Shawntae Cerda, Food and Water Watch, opposed the use of fracking in Fort Collins.
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Greg Hirschi, 2626 Thoreau Drive, asked that Council carefully consider its options and noted his
property is on the border of the 1000 foot setback for the UDA.
Michael O’Keefe, Loveland resident, supported continuing the moratorium on fracking.
Lia Pace, Fort Collins resident, supported continuing the ban on fracking.
Lauren Swain, Sierra Club, supported continuing the ban on fracking.
Sweede Anderson, Fort Collins resident, urged Council to pause and ensure enough insurance is
available before moving ahead with fracking.
Linda Vrooman, Fort Collins resident, opposed fracking based on its use of water.
Will Walters, 1701 Tanglewood, opposed fracking based on health risks until it is proven safe.
Ron Harper, 3532 Hearthfire, supported Prospect Energy and its efforts to operate safely.
Jerry Dauth, 1925 Serramonte, supported increased setback requirements.
Gary Wockner, Clean Water Action, supported continuing the full ban on fracking and questioned
the City’s dealings with Prospect Energy.
Josh Joswick, Bayfield resident, supported the power of local government to ensure the safety of
citizens.
Rico Moore, 721 West Myrtle, supported maintaining the ban on fracking.
Rob Willis, counsel representing Prospect Energy, supported adoption of the operator agreement.
Rudy Zitti, Fort Collins resident, supported adoption of the operator agreement.
Shane Davis, Fort Collins resident, supported a drilling ban citing failure rates of wells.
(Secretary’s note: The Council took a brief recess at this point in the meeting.)
Councilmember Cunniff asked if the existing agreement with the operator would take effect on
August 1, 2013, should Council lift the moratorium. Kadrich replied Council would need to act on
Second Reading. City Attorney Roy replied the effective date of the Ordinance, which has been
passed on First Reading, is to occur no later than August 1st, or the agreement is off. Adoption on
Second Reading could occur at any time prior to ten days before August 1st.
Councilmember Cunniff commended staff and Prospect Energy for their work on the agreement.
Councilmember Troxell made a motion, seconded by Councilmember Campana, to adopt Resolution
2013-036, Option #3.
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Mayor Weitkunat requested additional explanation of this Option. Kadrich replied this Option
includes enacting early any Colorado Oil and Gas Conservation rules that would take effect on
August 1st, not allowing any reentry to the plugged and abandoned wells in the Fort Collins Field,
the extension of new setbacks in the UDA for its northwestern and southeastern boundaries,
application of best management practices to the existing wells in the Fort Collins Field, and
increases the insurance during the drilling activity in the UDA to $10 million.
City Attorney Roy noted the Ordinance for Option #3 is the same as that for Option #1 and he noted
changes to that Ordinance since First Reading are shown with redline and strike-outs.
Councilmember Troxell stated this Option addresses input from Council and guarantees protections
above and beyond by the operator.
Councilmember Overbeck argued citizens want sound science over an agreement and want to be
protected.
Councilmember Cunniff stated the late presentation of this option is poor process and stated he
could not support the motion, as the option misses some of the best management practices. He
added he would support a five-to-seven year moratorium to allow consideration of the results of a
state health study.
Mayor Pro Tem Horak asked Councilmember Overbeck to elaborate on his opposition.
Councilmember Overbeck replied this agreement does not provide protection for citizens and the
vast majority of citizens support a ban on fracking. He stated he would also support a continued
moratorium to allow time for a health study.
Mayor Pro Tem Horak expressed concern about losing a potential lawsuit. Councilmember
Overbeck replied citizens want to take a stand.
Councilmember Poppaw asked Mayor Pro Tem Horak for his opinion on a timeline. Mayor Pro
Tem Horak replied litigation could ultimately lead to the City losing a great deal of money and
would result in Prospect Energy operating under state regulations rather than the more stringent
regulations in the operator agreement.
Mayor Weitkunat noted the moratorium passed in June exempted Prospect Energy. She stated the
agreement addresses the concerns of citizens while also protecting the City from costly litigation.
Councilmember Overbeck stated this agreement does not protect property values in terms of
Prospect Energy’s liability insurance and reiterated his concerns regarding health and safety
concerns.
Councilmember Troxell stated this agreement allows the City to be proactive.
Councilmember Campana stated he would prefer to be on the offensive in terms of Colorado oil and
gas regulation.
Councilmember Overbeck supported proceeding cautiously and placing the importance of health
and safety above that of a lawsuit.
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May 21, 2013
City Attorney Roy read into the record the changes to the Resolution.
Mayor Pro Tem Horak asked about Councilmember Cunniff’s suggested moratorium and its
applicability to Prospect Energy. Councilmember Cunniff replied he would propose no exemptions
for the moratorium, and believes that would be defensible in court.
The vote on the motion was as follows: Yeas: Campana, Horak, Weitkunat and Troxell. Nays:
Poppaw, Cunniff and Overbeck.
THE MOTION CARRIED.
Councilmember Troxell made a motion, seconded by Mayor Pro Tem Horak, to adopt Ordinance
No. 057, 2013, Option #3, on Second Reading.
Mayor Pro Tem Horak opposed the accusation that he colluded with Prospect Energy regarding the
agreement. He argued Council has a fiduciary responsibility to the citizens and stated opposing this
agreement would not be good for Fort Collins.
Councilmember Cunniff agreed there would likely be litigation should the moratorium not be lifted
and the agreement not be adopted; however, he disagreed that the City does not have a defensible
position.
Councilmember Campana agreed with Councilmember Cunniff but stated the resources and time
could be spent on protecting citizens using real-time monitoring rather than in court.
Councilmember Cunniff noted he is of the opinion there was no collusion on the part of any
Councilmembers.
Councilmember Overbeck argued a health study should be completed first in order to protect the
safety and health of citizens.
Mayor Weitkunat argued Prospect Energy has shown concern for the health and safety of citizens.
The vote on the motion was as follows: Yeas: Campana, Horak, Weitkunat and Troxell. Nays:
Poppaw, Cunniff and Overbeck.
THE MOTION CARRIED.
Other Business
Councilmember Troxell asked about the possibility of moving forward with Land Use Code
amendments addressing reciprocal setbacks and requirements to identify plugged and abandoned
wells prior to development, and the continuance of land use development regulations now that the
ban is in place.
Councilmember Cunniff and other Councilmembers agreed those items should be investigated. He
requested the consideration of an extended five to seven year moratorium on all oil and gas
extraction within the City limits with the purpose of determining the outcome of the State’s long-
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May 21, 2013
term health study. He stated he would like Council to be able to consider the item before the
existing moratorium terminates.
Councilmembers Poppaw and Overbeck agreed with Councilmember Cunniff to provide that
direction to staff.
Adjournment
The meeting adjourned at 11:32 p.m.
_________________________________
Mayor
ATTEST:
_____________________________
City Clerk
124
43
DATE: June 18, 2013
STAFF: Susie Gordon
AGENDA ITEM SUMMARY
FORT COLLINS CITY COUNCIL 7
SUBJECT
Second Reading of Ordinance No. 077, 2013 Appropriating Prior Year Reserves in the General Fund for Waste
Reduction and Diversion Projects Approved by the Waste Innovation Program.
EXECUTIVE SUMMARY
This Ordinance, unanimously adopted on First Reading on June 4, 2013, shifts $135,560 that has accumulated in the
Waste Innovation Program’s reserve account into the City’s General Fund account so that the money can be used for
the purposes intended. Revenues are paid into the Waste Innovation Program by City departments that “self haul”
trash from municipal operations for disposal in the Larimer County Landfill. The fund is designated to pay for projects
that enhance these same departments’ ability to divert more waste away from the landfill. Unspent funds from several
previous years had been moved into a “reserve” account; this action moves the funds back into the General Fund.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on Second Reading.
ATTACHMENTS
1. Copy of First Reading Agenda Item Summary - June 4, 2013
(w/o attachments)
44
COPY
COPY
COPY
ATTACHMENT 1
DATE: June 4, 2013
STAFF: Susie Gordon
AGENDA ITEM SUMMARY
FORT COLLINS CITY COUNCIL 14
SUBJECT
First Reading of Ordinance No. 077, 2013 Appropriating Prior Year Reserves in the General Fund for Waste Reduction
and Diversion Projects Approved by the Waste Innovation Program.
EXECUTIVE SUMMARY
This Ordinance shifts $135,560 that has accumulated in the Waste Innovation Program’s reserve account into the
City’s General Fund account so that the money can be used for the purposes intended. Revenues are paid into the
Waste Innovation Program by City departments that “self haul” trash from municipal operations for disposal in the
Larimer County Landfill. The fund is designated to pay for projects that enhance these same departments’ ability to
divert more waste away from the landfill. Unspent funds from several previous years had been moved into a “reserve”
account; this action moves the funds back into the General Fund.
BACKGROUND / DISCUSSION
The City Manager created a fund in 2010 to pay for projects that improve our organizational ability to divert waste
generated by municipal activities from being disposed in the Larimer County landfill. Discarded material and trash that
City crews self-haul to the landfill is charged only 28 cents/cubic yard by Larimer County Solid Waste Department,
which is passed through in payment to the state for landfill management/monitoring programs.
The balance of the regular “tipping fee” at the landfill, $5.27 per cubic yard, is placed in a Waste Innovation Program
(WIP) fund. These WIP revenues are received from 15 City departments that self-haul various types of waste to the
landfill in truckloads. (It doesn’t include trash collected from City office buildings and facilities by our contracted trash
hauler.)
Funds Collected Funds Spent
2010 - $79,960 $15,510
2011 - $101,864 $13,860
2012 - $136,114 $19,248
2013 – TBD $34,778 plus additional commitments of $152,986
$52,000 contributed to Integrated Recycling Facility
Waste Innovation Program (WIP) funds are used to administer grants that allow City departments to initiate new waste
diversion/recycling projects, with special attention to departments that contribute most heavily to the fund (i.e. amount
of waste they self-haul to the landfill). By design, the WIP should be a steadily decreasing fund as less waste is taken
to the landfill for disposal as a result of operational improvements.
An interdepartmental group of employees participates in awarding funds when requests are received from
departments. Members of this group also act as liaisons for communicating to crews about the need to reduce the
City’s use of the landfill, helping to actively incorporate waste reduction and recycling strategies as Best Management
Practices in City operations, and to solicit ideas for using WIP funds.
Past projects funded to date include:
• Forestry Division has used funds on equipment rental to grind large-diameter tree trunks and stumps;
• Purchase of solar-powered trash/recycling bin containers for use in public areas;
• 30 sets of twinned recycling/trash bins for offices and shops;
• Data collection activities for specific sources of waste; and,
• Partial funding to help finance construction of a publicly accessible Integrated Recycling Facility, approved in
the 2013/2014 BFO process.
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June 4, 2013 -2- ITEM 14
Upcoming Approved projects:
• Water Utilities’ Stormwater Division will buy equipment to create a soils recovery facility. The new screening
capability that Stormwater will use on excavated soils will enable crews to process waste materials into a
variety of soil and structural fill products. This project is expected to reduce Utilities’ landfill usage from an
annual average of about 11,000 cubic yards per year down to as little as 5,000 cubic yards.
FINANCIAL / ECONOMIC IMPACTS
The action will make $135,560 in funding available for City organization waste reduction projects that have been
submitted to and approved for funding via the Waste Innovation Program internal competitive process in 2013.
ENVIRONMENTAL IMPACTS
The WIP funds are intended to help City departments reduce their trash sent to the landfill. One major project
approved for 2013 is Water Utilities’ Stormwater Division plans to buy equipment to create a soils recovery facility.
The new screening capability that Stormwater will use on excavated soils will enable crews to process waste materials
into a variety of soil and structural fill products. This project is expected to reduce Utilities’ landfill usage from an
annual average of about 11,000 cubic yards per year down to as little as 5,000 cubic yards.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
46
ORDINANCE NO. 077, 2013
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROPRIATING PRIOR YEAR RESERVES IN THE GENERAL FUND
FOR WASTE REDUCTION AND DIVERSION PROJECTS APPROVED
BY THE WASTE INNOVATION PROGRAM
WHEREAS, in 2010, the City created the Waste Innovation Program (the “WIP”) fund,
where revenues collected for the program are held in a reserve account in the General Fund to pay
for projects that improve the City's ability to divert waste from municipal activities from being
disposed of in the Larimer County Landfill; and
WHEREAS, the funds are used to administer grants that allow City departments to initiate
new waste diversion and recycling projects with emphasis on departments that have larger quantities
of waste that is self-hauled to the Larimer County Landfill; and
WHEREAS, an interdepartmental group of employees participate as liaisons for
incorporating waste reduction into City practices, promoting recycling strategies, and awarding WIP
funds when requests are received from participating City departments; and
WHEREAS, the group has approved one major project for 2013 by the Water Utilities
Stormwater Division (“Utilities”) including the processing of waste materials into a variety of soil
and structural fill products; and
WHEREAS, the project will reduce Utilities’ landfill usage from about 11,000 cubic yards
per year down to approximately 5,000 cubic yards per year; and
WHEREAS, other waste reduction and diversion projects are ready for review for possible
WIP funding; 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 that there is hereby appropriated for expenditure from prior year reserves in the General
Fund the sum of ONE HUNDRED THIRTY FIVE THOUSAND FIVE HUNDRED SIXTY
DOLLARS ($135,560) for waste reduction and diversion projects approved by the Waste Innovation
Program.
47
Introduced, considered favorably on first reading, and ordered published this 4th day of June,
A.D. 2013, and to be presented for final passage on the 18th day of June, A.D. 2013.
_________________________________
Mayor
ATTEST:
_____________________________
City Clerk
Passed and adopted on final reading on the 18th day of June, A.D. 2013.
_________________________________
Mayor
ATTEST:
_____________________________
City Clerk
48
DATE: June 18, 2013
STAFF: Jon Haukaas, Ken Sampley
Chris Lochra
AGENDA ITEM SUMMARY
FORT COLLINS CITY COUNCIL 8
SUBJECT
Second Reading of Ordinance No. 078, 2013 Appropriating Unanticipated Grant Revenue into the Stormwater Fund,
and Authorizing the Transfer of Existing Appropriations from the Flood Mapping/Stream Gaging Capital Project to the
Post Fire Flood Warning Grant Project for Early Flood Warning Capabilities.
EXECUTIVE SUMMARY
This Ordinance, unanimously adopted on First Reading on June 4, 2013, appropriates funds received from a State
of Colorado grant totaling $17,881. The grant funds will be used to enhance early flash flood warning capabilities due
to the increased risk of flooding caused by the High Park Fire. Existing appropriations will be used for the match of
$5,960.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on Second Reading.
ATTACHMENTS
1. Copy of First Reading Agenda Item Summary - June 4, 2013
(w/o attachments)
49
COPY
COPY
COPY
ATTACHMENT 1
DATE: June 4, 2013
STAFF: Jon Haukaas, Ken Sampley
Chris Lochra
AGENDA ITEM SUMMARY
FORT COLLINS CITY COUNCIL 15
SUBJECT
First Reading of Ordinance No. 078, 2013 Appropriating Unanticipated Grant Revenue into the Stormwater Fund, and
Authorizing the Transfer of Existing Appropriations from the Flood Mapping/Stream Gaging Capital Project to the Post
Fire Flood Warning Grant Project for Early Flood Warning Capabilities.
EXECUTIVE SUMMARY
The Stormwater Utility has received a grant from the State of Colorado totaling $17,881. The grant funds will be used
to enhance early flash flood warning capabilities due to the increased risk of flooding caused by the High Park Fire.
Existing appropriations will be used for the match of $5,960.
BACKGROUND / DISCUSSION
Initial Grant ($10,958)
As a result of the High Park Fire, vegetative cover has been lost and an increased volume of stormwater runoff and
debris is now anticipated. In addition, runoff velocities are projected to increase significantly. The City of Fort Collins
will install a new streamflow sensor in the Cache la Poudre Canyon to provide an additional one to two (1 – 2) hours
of flash flood warning time above that currently available from the existing sensor located at the mouth of the canyon.
Data will be received into the existing City Stormwater Floodwarning System and available to Stormwater utility on-call
staff to assist with the evaluation and appropriate implementation of emergency response and public notification.
Amendment 1 ($6,923)
This grant funding will provide enhanced reception and utility of Poudre River in-stream water quality data from
equipment that was installed post-fire in order to monitor water quality conditions upstream of the City’s Water
Treatment Plant (WTP) intake. When certain water quality parameters are exceeded, the intake should be closed to
prevent costly treatment measures and potential damage to the WTP. Currently, when stream water quality
deteriorates past certain thresholds, the WTP Operators receive text message alarms directing them to close the WTP
Poudre River intake. This new equipment will provide real-time water quality data directly to the Operators control
screens, allowing them to evaluate stream conditions dynamically and receive alarms both visually and via text
message.
The equipment will be installed by July 31, 2013.
FINANCIAL / ECONOMIC IMPACTS
The early flood warning and water quality monitoring will contribute to enhanced emergency response and public
notification in case of flooding and will assist in determining when the Poudre River WTP intake should be closed. The
grant requires a 25% match ($5,960). The Ordinance provides for the matching funds to be transferred from existing
capital Stormwater appropriations for stream gaging.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
50
ORDINANCE NO. 078, 2013
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROPRIATING UNANTICIPATED GRANT REVENUE INTO THE STORMWATER
FUND, AND AUTHORIZING THE TRANSFER OF EXISTING APPROPRIATIONS FROM
THE FLOOD MAPPING/STREAM GAGING CAPITAL PROJECT TO THE POST FIRE
FLOOD WARNING GRANT PROJECT FOR EARLY FLOOD WARNING CAPABILITIES
WHEREAS, Stormwater Utility has received two grants from the State of Colorado totaling
$17,881 that will be used to enhance early flash flood warning capabilities due to the increased risk
of flooding caused by conditions existing after the High Park Fire (the “Project”); and
WHEREAS, the initial grant of $10,958 will allow the City to install a new streamflow
sensor in the Cache la Poudre Canyon to provide an additional one to two hours of flash flood
warning time above that currently available from the existing sensor located at the mouth of the
canyon; and
WHEREAS, the second grant of $6,923 will allow the City to provide enhanced reception
and utility of Poudre River in-stream water quality data from equipment that was installed post-fire
in order to monitor water quality conditions upstream of the City’s Water Treatment Plant (WTP)
intake; and
WHEREAS, the State of Colorado grants require a 25% local funding match, totaling $5,960,
which will be transferred from existing appropriations in the Flood Mapping/Stream Gaging
stormwater capital project to the Post Fire Flood Warning grant project (for a total project cost of
$23,841); and
WHEREAS, the Project will contribute to enhanced emergency response and public
notification in case of flooding and will assist in determining when the Poudre River WTP intake
should be closed; and
WHEREAS, Article V, Section 9, of the City Charter permits the City Council to make
supplemental appropriations by ordinance at any time during the fiscal year, provided that the total
amount of such supplemental appropriations, in combination with all previous appropriations for that
fiscal year, does not exceed the current estimate of actual and anticipated revenues to be received
during the fiscal year; and
WHEREAS, City staff have determined that the appropriation of the revenue as described
herein will not cause the total amount appropriated in the Stormwater Fund to exceed the current
estimate of actual and anticipated revenues to be received in that fund during any fiscal year; and
WHEREAS, Article V, Section 10, of the City Charter authorizes the City Council to transfer
by ordinance any unexpended and unencumbered appropriated amount or portion thereof from one
fund or capital project to another fund or capital project, provided that the purpose for which the
transferred funds are to be expended remains unchanged.
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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 unanticipated grant
revenue in the Stormwater Fund the sum of SEVENTEEN THOUSAND EIGHT HUNDRED
EIGHTY-ONE DOLLARS ($17,881) for the Post Fire Flood Warning grant project.
Section 2. That the unexpended appropriated amount of FIVE THOUSAND NINE
HUNDRED SIXTY DOLLARS ($5,960) in the Flood Mapping/Stream Gaging capital project is
authorized for transfer to the Post Fire Flood Warning grant project and appropriated therein for
expenditure on the Project.
Introduced, considered favorably on first reading, and ordered published this 4th day of June,
A.D. 2013, and to be presented for final passage on the 18th day of June, A.D. 2013.
_________________________________
Mayor
ATTEST:
_____________________________
City Clerk
Passed and adopted on final reading on the 18th day of June, A.D. 2013.
_________________________________
Mayor
ATTEST:
_____________________________
City Clerk
52
DATE: June 18, 2013
STAFF: John Stokes
Daylan Figgs
AGENDA ITEM SUMMARY
FORT COLLINS CITY COUNCIL 9
SUBJECT
Second Reading of Ordinance No. 079, 2013, Authorizing the Use of the Noonan Tract and the Bowes Homestead
Tract as Match for a Neotropical Migratory Bird Conservation Act Grant Administered by the U.S. Fish and Wildlife
Service.
EXECUTIVE SUMMARY
This Ordinance, unanimously adopted on First Reading on June 4, 2013, authorizes the use of a recent acquisition
of 280 acres at Soapstone Prairie Natural Area as match towards a Neotropical Migratory Bird Conservation Act grant,
as well as management funds currently obligated in the Natural Areas Department (NAD) budget. Using the funds
already spent as match towards this grant is a great secondary benefit for the City. The $200,000 grant will expand
upon the Rocky Mountain Bird Observatory’s (RMBO) research and monitoring work to implement conservation
strategies and management for 19 high priority grassland birds that breed within the Laramie Foothills Mountains to
Plains Project and 27 high priority species at wintering sites in the Chihuahua Desert of Mexico.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on Second Reading.
ATTACHMENTS
1. Copy of First Reading Agenda Item Summary - June 4, 2013
(w/o attachments)
53
COPY
COPY
COPY
ATTACHMENT 1
DATE: June 4, 2013
STAFF: John Stokes
Daylan Figgs
AGENDA ITEM SUMMARY
FORT COLLINS CITY COUNCIL 16
SUBJECT
First Reading of Ordinance No. 079, 2013, Authorizing the Use of the Noonan Tract and the Bowes Homestead Tract
as Match for a Neotropical Migratory Bird Conservation Act Grant Administered by the U.S. Fish and Wildlife Service.
EXECUTIVE SUMMARY
The City will use a recent acquisition of 280 acres at Soapstone Prairie Natural Area (Soapstone Prairie) as match
towards the grant, as well as management funds currently obligated in the Natural Areas Department (NAD) budget.
Using the funds already spent as match towards this grant is a great secondary benefit for the City. The $200,000
grant will expand upon Rocky Mountain Bird Observatory’s (RMBO) research and monitoring work to implement
conservation strategies and management for 19 high priority grassland birds that breed within the Laramie Foothills
Mountains to Plains Project and 27 high priority species at wintering sites in the Chihuahua Desert of Mexico.
This will be the fifth such match authorized as the City, in partnership with RMBO, has been successful on four
previous grant applications. The previous partnership efforts have resulted in a broader understanding of the
grasslands bird species that nest on Soapstone Prairie and the contiguous Meadow Springs Ranch, and has
contributed to the conservation of these species’ winter ranges in Mexico.
BACKGROUND / DISCUSSION
The Rocky Mountain Bird Observatory, in partnership with NAD, the American Bird Conservancy, Cornell Lab of
Ornithology, and the Universidad Autónoma de Chihuahua, submitted a Neotropical Migratory Bird Conservation Act
Grant to implement actions to improve and restore habitat for priority grassland birds on their wintering and breeding
grounds. Neotropical birds are a group of birds that breed and raise young in the United States and Canada and
migrate to the warmer climates to winter in Mexico, Central America, South America and the Caribbean. This category
of bird species includes high priority grassland birds found on Soapstone Prairie, Meadow Springs Ranch, and other
properties in the Laramie Foothills Mountains to Plains (LFMTP) project area. The importance of the LFMTP area to
19 high priority grassland birds has been documented through work performed by RMBO and NAD and is reflected
in the adopted Soapstone Prairie Natural Area Management Plan. However, the LFMTP area lies only within the
breeding range of these species and has no influence on the conservation of these important species and their habitat
within their wintering grounds.
In this phase of the U.S.-Mexico Grassland Bird Conservation project, the focus will shift toward the implementation
of actions to improve and restore habitat for priority grassland birds on their wintering and breeding grounds. The
proposed actions focus primarily on increasing habitat availability and suitability for Sprague’s Pipit populations in key
wintering areas in Chihuahua, Mexico that are threatened by accelerating habitat destruction and degradation. The
second component of the project will focus on increasing habitat availability and suitability for Mountain Plover
populations at an important breeding site in Colorado that is threatened by impacts caused by sylvatic plague
epidemics, prairie dog control, oil and gas development and recreational use. The proposed work will also directly
benefit up to 18 other high-priority grassland birds within the Laramie Foothills, and 27 high priority species at the
wintering sites in Chihuahua.
Monitoring efforts within the Laramie Foothills funded by past Neotropical Bird Grants have included extensive point
count surveys and demographic monitoring of grassland bird productivity on Soapstone Prairie. NAD is using the point
count data to identify important bird resources, breeding sites and habitats that warrant special management attention,
guide potential impacts away from sensitive species and habitats, and track population changes over time and in
response to management and other influences. In addition, NAD is using the reproductive and demographic data to
determine baseline reproductive rates and assess affects of recreation and grazing management. Active monitoring
has also helped guide management in response to a recent plague event that severely reduced active prairie dog
colonies and reduced the Mountain Plover population from 50-60 birds in 2008 to just 12 birds in 2011. Due in part
to ongoing monitoring, NAD was able to employ a variety of management techniques such as dusting for flea control
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June 4, 2013 -2- ITEM 16
within the few remaining prairie dog colonies, prescribed fire, and strategic grazing in order to prevent the last of the
prairie dogs and Mountain Plovers from disappearing.
Monitoring will continue through the use of grant funds to track the effects of management efforts on grassland bird
density and distribution and will be used to help guide decisions concerning the potential for impacts associated with
energy development. Monitoring efforts will focus on Neotropical birds associated with black-tailed prairie dog colonies
and within the Foothills Shrublands (mountain mahogany) and Salt desert scrub (four-wing saltbush) ecological
systems. This information will inform management decisions and the sustainable stewardship of Soapstone Prairie.
This project will be coordinated and implemented by RMBO, in cooperation with NAD, American Bird Conservancy
(ABC), Pronatura Noreste, the Universidad Autónoma de Chihuahua and the Cornell Lab of Ornithology, and in
coordination with the State of Chihuahua’s Secretary of Urban Development and Ecology, the Rio Grande Joint
Venture, the Chihuahuan Desert Grassland Regional Alliance, Cuenca Los Ojos Foundation, local communities and
private ranchers in Chihuahua, and representatives from INIFAP (National Forestry and Agricultural Research Institute)
and SAGARPA (Secretary of Agriculture, Ranching, Rural Development, Fisheries, and Food supply) in Mexico. A
unique feature of this project is that it involves a broad-based collaboration among international, regional, and local
organizations from public, private, and NGO sectors, and most entities are contributing significant cash and in-kind
resources and expertise to the project goals. This range-wide, integrated approach to grassland bird conservation
includes two distinct but complementary projects that address high priority needs of grassland birds on both their
breeding and wintering grounds.
The NAD match for this $200,000 grant will come from the Department’s 2011 purchase of the 80 acre Noonan Tract
and the 200 acre Bowes Homestead tract, both additions to Soapstone Prairie, and from funds used to manage
Soapstone Prairie. The funds used to purchase the Noonan and Bowes Homestead tracts are not federal in origin
and have not been used to match other Federal grant funding sources. Of the grant dollars received, approximately
$75,000 will be spent locally on RMBO staff salaries and overhead. The remainder of the funds will be used to support
the project in Mexico. RMBO will administer the grant.
In order for this land purchase to be considered as match for the USFWS grant, the City will be required to record a
“Notice of Grant Requirements” that will require the City to be bound by the terms of the grant agreement for the grant,
to ensure the long term conservation of the property, and to obtain the consent of the USFWS prior to transfer or
encumbrance of the property. The City will also enter into an agreement with RMBO obligating RMBO to comply with
the terms of the grant agreement.
FINANCIAL / ECONOMIC IMPACTS
The City will use the purchase of the 80 acre Noonan Tract and the 200 acre Bowes Homestead tract (see
Attachment 1) and funds already obligated for the management of Soapstone Prairie as match toward the grant. This
will not obligate any additional funds but will provide a secondary benefit to the funds already spent to acquire this
portion of Soapstone Prairie and already obligated for management of the property. The two new tracts are managed
as part of Soapstone Prairie and are already conserved by NAD.
The Rocky Mountain Bird Observatory will receive $200,000 from USFWS to fund conservation work within the
Laramie Foothills Mountains to Plains project area, and in the Chihuahuan Desert of Mexico. Of the grant dollars
received, approximately $75,000 will be spent locally on RMBO staff salaries and overhead. The remainder of the
funds will be used to support the project in Mexico. RMBO will administer the grant.
ENVIRONMENTAL IMPACTS
The Soapstone Prairie Natural Area Management Plan (adopted in 2007) identifies ecological and cultural values of
highest priority and sets in place management objectives for the property. Activities identified in the 2013-2014 BFO
budget cycle focus on evaluating management efforts to increase and sustain a black-tailed prairie dog complex
between 3,000 and 4,000 acres. Black-tailed prairie dogs are considered a keystone species within the shortgrass
prairie ecosystem, are closely tied to several conservation targets identified in the Soapstone Prairie Natural Area
Management Plan, including grassland bird species such as mountain plover. In addition, continued monitoring of
grassland and shrubland bird communities will be used to help guide management decisions. Grant dollars will be
used to supplement funds identified for this budgeted activity and help to stretch the NAD budget even further.
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The NAD has built a successful partnership with RMBO to fund conservation work of this type in the Laramie Foothills
since 2005. RMBO is a local conservation organization dedicated to the conservation of birds.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
BOARD / COMMISSION RECOMMENDATION
The Land Conservation and Stewardship Board considered the grant project at its March 14, 2012 meeting and
unanimously recommended that Council adopt the Ordinance to authorize the use of funds to purchase the Noonan
tract and Bowes Homestead tract by the Natural Areas Department as match for a Neotropical Migratory Bird
Conservation Act Grant administered by the U.S. Fish and Wildlife Service and to place a Notice of Grant Agreement
on the Noonan and Bowes Homestead tracts.
PUBLIC OUTREACH
Public outreach specific to this grant was not conducted. The purpose of the grant is to implement monitoring
objectives outlined in the Soapstone Prairie Natural Area Management Plan. This Plan was adopted after public
review and comment.
ATTACHMENTS
1. Parcels used as match for 2012 Neotropical Migratory Bird grant
2. Land Conservation and Stewardship Board minutes
56
ORDINANCE NO. 079, 2013
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE USE OF THE NOONAN TRACT AND THE BOWES HOMESTEAD
TRACT AS MATCH FOR A NEOTROPICAL MIGRATORY BIRD CONSERVATION ACT
GRANT ADMINISTERED BY THE U.S. FISH AND WILDLIFE SERVICE
WHEREAS, in March 2008, the City Council adopted Ordinance No. 037, 2008, authorizing
the use of the City’s Zimmerman Conservation Easement as a matching contribution for a
Neotropical Migratory Bird Conservation Act Grant administered by the U.S. Fish and Wildlife
Service (“FWS”); and
WHEREAS, in April 2009, the City Council adopted Ordinance No. 032, 2009, authorizing
the use of a 440-acre portion of Bernard Ranch as a matching contribution for a Neotropical
Migratory Bird Conservation Act Grant administered by the FWS; and
WHEREAS, in May, 2010, the City Council adopted Ordinance No. 053, 2010, authorizing
the use of a different 660-acre portion of Bernard Ranch as a matching contribution for a Neotropical
Migratory Bird Conservation Act Grant administered by the FWS; and
WHEREAS, the City has worked cooperatively with the Rocky Mountain Bird Observatory
(“RMBO”) to carry out the terms of the previous grant projects involving the study of neotropical
birds, a category of bird species that includes high priority grassland birds found on Soapstone
Prairie Natural Area; and
WHEREAS, two recent additions to Soapstone Prairie known as the Noonan tract and the
Bowes Homestead tract, as shown on Exhibit “A”, attached and incorporated herein by this reference
(collectively, the “Property”), have been identified as an appropriate area to be conserved as habitat
for neotropical birds in the region; and
WHEREAS, RMBO, together with other grant partners, is continuing to study neotropical
birds and has applied for an additional grant of $200,000 from FWS; and
WHEREAS, RMBO hopes to use this new grant to continue its neotropical bird study as part
of the Laramie Foothills Mountain to Plains Project, which includes Soapstone and other
geographical areas that the birds inhabit; and
WHEREAS, the FWS grant terms will require RMBO to match the grant funds awarded; and
WHEREAS, the funds already expended by the City to purchase the Property may be used
to match the grant funds awarded by FWS to RMBO; and
WHEREAS, in order to commit the Property as the matching contribution for the FWS grant,
FWS will require that the City record a Notice of Grant Requirements in the real property records
of the Larimer County Clerk and Recorder for the Property; and
57
WHEREAS, the Notice of Grant Requirements requires the City to be bound by the terms
of the grant agreement between FWS and RMBO, including the obligation to ensure the long term
conservation of the Property and to obtain the consent of the FWS prior to conveying or
encumbering the Property; and
WHEREAS, the City’s consent to these restrictions on its property constitutes an
encumbrance on the City’s real property; and
WHEREAS, the City will also enter into an agreement with RMBO requiring RMBO to
comply with the terms of the grant agreement between FWS and RMBO; and
WHEREAS, the data acquired from the study will allow City staff to more effectively form
conservation strategies and manage high priority grassland birds that are found at Soapstone; and
WHEREAS, under Section 23-111 of the Code of the City of Fort Collins, the City Council
is authorized to sell or otherwise dispose of any and all interests in real property owned in the name
of the City, provided that the City Council first finds, by ordinance, that such sale or disposition is
in the best interests of the City.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1. That the Council hereby finds that use of the Noonan and Bowes Homestead
tracts as a match towards a U.S. Fish and Wildlife Service Grant to the Rocky Mountain Bird
Observatory, including execution and recording of a Notice of Grant Requirements as described
herein, is in the best interests of the City.
Section 2. That the Mayor is hereby authorized to execute a Notice of Grant
Requirements consistent with the terms of this Ordinance, along with such other terms and
conditions as the City Manager, in consultation with the City Attorney, determines are necessary or
appropriate to protect the best interests of the City, including, but not limited to, any necessary
changes to the legal description of the Property to be encumbered, as long as such changes do not
materially increase the size or change the character of the Property.
Introduced, considered favorably on first reading, and ordered published this 4th day of June,
A.D. 2013, and to be presented for final passage on the 18th day of June, A.D. 2013.
_________________________________
Mayor
ATTEST:
_____________________________
City Clerk
-2-
58
Passed and adopted on final reading on the 18th day of June, A.D. 2013.
_________________________________
Mayor
ATTEST:
_____________________________
City Clerk
-3-
59
EXHIBIT A
Legal Descriptions
Noonan Tract:
The South One-half of the Southeast Quarter of Section 11, Township 11 North, Range 69 West
of the 6
th
P.M., Larimer County, State of Colorado.
Bowes Homestead Tract:
The E1/2 of the NE ¼, the N1/2 of the SE ¼ and the NE ¼ of the SW1/4 of Section 24,
Township 11 North, Range 69 West of the 6
th
P.M., County of Larimer, State of Colorado.
60
DATE: June 18, 2013
STAFF: Ginny Sawyer
AGENDA ITEM SUMMARY
FORT COLLINS CITY COUNCIL 10
SUBJECT
Second Reading of Ordinance No. 080, 2013, Authorizing Amendments to the Intergovernmental Agreement Between
the City and Poudre School District Pertaining to the Land Dedication and In-Lieu Fee Requirements Contained in
Such Agreement.
EXECUTIVE SUMMARY
Since 1998, the City of Fort Collins has collected a fee-in-lieu of land dedication for both Poudre School District and
Thompson School District. These fees allow a residential developer to pay a school site fee to the School Districts
rather than dedicate a parcel of land to the District for development of future schools. The ability of the school districts
to require land dedication is authorized under Colorado Law.
Fees are reviewed every two years and, in 2011, the Poudre School District reduced fee amounts by 11 percent. This
Ordinance, unanimously adopted on First Reading on June 4, 2013, will increase the amount of the fees the District
receives by 6.9 percent. The School District is requesting an increase in the fees collected because of an increase in
land values and cost per acreage. This fee amount was reviewed and approved by the Poudre School Board in
February 2013. Thompson School District will not be adjusting fees in 2013.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on Second Reading.
ATTACHMENTS
1. Copy of First Reading Agenda Item Summary - June 4, 2013
(w/o attachments)
61
COPY
COPY
COPY
ATTACHMENT 1
DATE: June 4, 2013
STAFF: Ginny Sawyer
Ed Holder, Poudre School District
AGENDA ITEM SUMMARY
FORT COLLINS CITY COUNCIL 17
SUBJECT
Public Hearing and First Reading of Ordinance No. 080, 2013, Authorizing Amendments to the Intergovernmental
Agreement Between the City and Poudre School District Pertaining to the Land Dedication and In-Lieu Fee
Requirements Contained in Such Agreement.
EXECUTIVE SUMMARY
Since 1998, the City of Fort Collins has collected a fee-in-lieu of land dedication for both Poudre School District and
Thompson School District. These fees allow a residential developer to pay a school site fee to the School Districts
rather than dedicate a parcel of land to the District for development of future schools. The ability of the school districts
to require land dedication is authorized under Colorado Law.
Fees are reviewed every two years and in 2011the Poudre School District reduced fee amounts by 11 percent. This
ordinance will increase the amount of the fees the district receives by 6.9 percent. The school district is requesting an
increase in the fees collected because of an increase in land values and cost per acreage. This fee amount was
reviewed and approved by the Poudre School Board in February 2013. Thompson School District will not be adjusting
fees in 2013.
BACKGROUND / DISCUSSION
In April 1998, the City of Fort Collins and Thompson and Poudre School Districts entered into Intergovernmental
Agreements regarding land dedication for new developments, including a provision for fees-in-lieu of land dedication.
Poudre School District has asked that the amount of the fees be increased to reflect the current cost of acquiring
school sites. Thompson School District has not requested a change.
The City’s Intergovernmental Agreement (IGA) with Poudre School District allows for periodic updates to the fees and
land dedication requirements. Since adoption of the IGA, fees have been adjusted in 2001, 2006, and 2011.
Fees are based on a number of factors including school site size, student population projections, enrollment capacities
of each type of school (elementary, junior high and high schools), and the cost of developed land within the school
district. Site sizes and enrollment capacities are set by School District policy.
School Districts in Colorado are allowed by State law to either require school site dedications from residential
developers or collect a fee-in-lieu of such land dedication. The calculation of this fee must be closely tied to the cost
of land to be dedicated, as well as the factors listed above.
This fee increase is at the request of PSD and is based on a land value analysis performed for the District in late 2012
(Attachment 2).
The effect of the proposed change in per dwelling unit costs would be as follows:
Poudre School District
Fee per dwelling unit: Current Fee Revised Fee
1-4 attached dwelling units $1,600 $1,710
5 or more attached dwelling units $ 800 $ 855
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June 4, 2013 -2- ITEM 17
The Intergovernmental Agreement requires that the City conduct a public hearing prior to any changes in the fee or
land requirement. The Poudre School District Board has reviewed its methodology for this program and requested
that the City Council approve this revision. The detailed methodology for calculating the fees are provided in Exhibits
A and B of the Ordinance.
FINANCIAL / ECONOMIC IMPACTS
The proposed Ordinance will not have a financial impact on the City of Fort Collins because the fees are collected on
behalf of Poudre School District. Revenues from the fees will pass through City accounts and will not affect City
revenue limits under Article X, Section 20.
This Ordinance implements a fee increase requested by Poudre School District. The increased fee will raise the cost
of residential development in the community collected at the time of building permit by $110 per single family unit Multi-
family unit fees (over 5 units) are increased by $55 per dwelling unit. This is a 6.9% increase.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
PUBLIC OUTREACH
This action was reviewed and approved at the February 26, 2013 Poudre School District Board Meeting.
ATTACHMENTS
1. PSD Board of Education Agenda Item Summary, February 26, 2013
2. Real Estate Analysis, November 16, 2012
3. PSD Board of Education Exhibit A and B
4. Intergovernmental Agreement between the City and PSD
63
ORDINANCE NO. 080, 2013
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING AMENDMENTS TO THE INTERGOVERNMENTAL
AGREEMENT BETWEEN THE CITY AND POUDRE SCHOOL DISTRICT
PERTAINING TO THE LAND DEDICATION AND IN-LIEU FEE
REQUIREMENTS CONTAINED IN SUCH AGREEMENT
WHEREAS, on April 21, 1998, the City entered into an intergovernmental agreement with
the Poudre School District, which agreement provides for the dedication of land by developers in
the City to said school district for the construction of new schools needed to offset the impacts of
their development, or, in the alternative, for the payment of a fee in-lieu of such dedication (the
“School Agreement”); and
WHEREAS, the requirements imposed upon developers pursuant to the School Agreement
have been embodied in the Chapter 7.5 of the City Code; and
WHEREAS, Section 7.5-48(d) of the City Code states, in essence, that the amount of the in-
lieu fee to be paid by developers is to be established by the School Agreement and is to be equal to
the fair market value of the property that could otherwise be required to be reserved for future
dedication to the school district; and
WHEREAS, Section 7.5-51(b) of the City Code calls for review by the City Council, at least
every two years, of the land dedication and in-lieu fee schedule requirements attached to the School
Agreement as Exhibit “A” (pertaining to school district planning standards) and Exhibit “B”
(methodology for calculating the in-lieu fee); and
WHEREAS, Section 1 of the School Agreement states that the school planning standards
(Exhibit “A”) should be reviewed annually by the school district and the City and adjusted by mutual
agreement as needed, and paragraph 5(a) of such agreement states that both the standards and
methodology are to be updated annually; and
WHEREAS, the School Agreement, as well as Section 7.5-51(b) of the City Code, require
that a public hearing be held by the City before any changes in the amount of the in-lieu fee; and
WHEREAS, the Poudre School District has adopted proposed revisions to Exhibits “A” and
“B” to the agreement with the City and have requested that the City Council approve the same; and
WHEREAS, after a public hearing regarding the proposed changes, the City Council believes
that the proposed revisions to said Exhibits “A” and “B” are in the best interests of the City.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
64
Section 1. That the amended Exhibits “A” and “B” of the Poudre School District
Agreement, which Exhibits are attached hereto and incorporated herein by this reference, are hereby
approved by the City Council.
Section 2. That the Mayor is hereby authorized to execute, on behalf of the City, addenda
to the School Agreements reflecting the amendments authorized by this Ordinance.
Introduced, considered favorably on first reading, and ordered published this 4th day of June,
A.D. 2013, and to be presented for final passage on the 18th day of June, A.D. 2013.
_________________________________
Mayor
ATTEST:
_____________________________
City Clerk
Passed and adopted on final reading on the 18th day of June, A.D. 2013.
_________________________________
Mayor
ATTEST:
_____________________________
City Clerk
65
66
67
DATE: June 18, 2013
STAFF: Tawyna Ernst
AGENDA ITEM SUMMARY
FORT COLLINS CITY COUNCIL 11
SUBJECT
Second Reading of Ordinance No. 081, 2013 Authorizing Dryland Farm Leases to Harry Sauer on Long View Farm
Open Space, Prairie Ridge Natural Area, and Coyote Ridge Natural Area.
EXECUTIVE SUMMARY
The City of Fort Collins Natural Areas Department is a minority owner in Long View Farm Open Space and Prairie
Ridge Natural Area, and is the sole owner of the McKee parcel within Coyote Ridge Natural Area. The majority owners
of Long View and Prairie Ridge are Larimer County and the City of Loveland respectively. All three properties are
leased by Harry Sauer for dryland wheat production and have been since the time of purchase of the properties by
the Cities and County. Intergovernmental Agreements state which agency has management authority and receives
the lease revenues for each property. As current leases expire on the properties, all three entities have worked
collaboratively to create leases with similar terms and have advertised the properties for lease via one Request for
Proposals process. This Ordinance, unanimously adopted on First Reading on June 4, 2013, authorizes dryland farm
leases to Harry Sauer on these areas. The new leases have a higher lease rate and more contemporary language.
Restoration of the dryland wheat to native grasses on the McKee parcel will continue at the same pace as in the past
and it will nearly be completely restored to native grasslands by the end of the lease term of five years.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on Second Reading.
ATTACHMENTS
1. Copy of First Reading Agenda Item Summary - June 4, 2013
(w/o attachments)
68
COPY
COPY
COPY
ATTACHMENT 1
DATE: June 4, 2013
STAFF: Tawyna Ernst
AGENDA ITEM SUMMARY
FORT COLLINS CITY COUNCIL 18
SUBJECT
First Reading of Ordinance No. 081, 2013 Authorizing Dryland Farm Leases to Harry Sauer on Long View Farm Open
Space, Prairie Ridge Natural Area, and Coyote Ridge Natural Area.
EXECUTIVE SUMMARY
The City of Fort Collins Natural Areas Department is a minority owner in Long View Farm Open Space and Prairie
Ridge Natural Area, and is the sole owner of the McKee parcel within Coyote Ridge Natural Area. The majority owners
of Long View and Prairie Ridge are Larimer County and the City of Loveland respectively. All three properties are
leased by Harry Sauer for dryland wheat production and have been since the time of purchase of the properties by
the Cities and County. Intergovernmental Agreements state which agency has management authority and receives
the lease revenues for each property. As current leases expire on the properties, all three entities have worked
collaboratively to create leases with similar terms and have advertised the properties for lease via one Request for
Proposals process. The new leases have a higher lease rate and more contemporary language. Restoration of the
dryland wheat to native grasses on the McKee parcel will continue at the same pace as in the past and it will nearly
be completely restored to native grasslands by the end of the lease term of five years.
BACKGROUND / DISCUSSION
In 1997, the 479-acre Long View Farm Open Space was purchased by Larimer County, the City of Fort Collins and
the City of Loveland, with an ownership split of 50%, 33%, and 17%, respectively. At the time of acquisition, an
Intergovernmental Agreement (IGA) was also drafted. Per the terms of the IGA, the County manages the property
and administers the agricultural lease, and receives all rental income from the property.
In 2000, the 785-acre Prairie Ridge Natural Area was acquired from Harry Sauer by Loveland (75% ownership) and
Fort Collins (25% ownership). Per the terms of the IGA, Loveland manages the property and the agricultural lease,
and receives all rental income from the property.
In 1997, Fort Collins acquired the 973-acre McKee Farm parcel of Coyote Ridge Natural Area. Fort Collins owns and
manages the property entirely with no shared ownership or management with other entities.
Mr. Sauer farmed all three properties prior to City and County ownership, and has continued farming under the existing
leases that are set to expire in 2013.
RFP Process
In the fall of 2011, a Request for Proposal (RFP) was conducted by Fort Collins for dryland farming leases on all three
properties. Mr. Sauer’s proposal was selected. The new agricultural lease reflects the terms and conditions outlined
in the proposal. Fort Collins, Loveland, and Larimer County worked together to draft leases for each Property that are
nearly identical in terms with several minor exceptions. The lease rate and the large majority of terms for all three
leases are the same. These consistent lease terms will allow consistency and ease of management across the three
adjacent properties and provide Mr. Sauer with essentially one set of lease terms to adhere to.
Lease Terms
Mr. Sauer will lease Long View, Prairie Ridge, and McKee for a period of five (5) years beginning August 1, 2013 and
expiring no later than July 31, 2018.
The lease rate will be $20/acre of farmed land annually for each property. Mr. Sauer will receive 100% of the Crop
Flexibility payments from the Farm Service Agency, and is responsible for any and all costs associated with crop
production, insect control and noxious weed control. In addition, the lease terms have been updated to a more
contemporary format with more preferable terms.
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June 4, 2013 -2- ITEM 18
Restoration
Over the past five years, Fort Collins has restored approximately 50 acres of farmland annually to native grasslands
on McKee. Currently, Fort Collins plans to continue restoration efforts on McKee at the same pace; approximately 50
acres of farmable acreage will remain on the property by the end of this lease term, which will be restored the following
year. The McKee lease details this restoration and Mr. Sauer will work cooperatively with Fort Collins to farm the
remaining portion of the property.
FINANCIAL / ECONOMIC IMPACTS
The rent payments from Long View and Prairie Ridge will be retained by Larimer County and Loveland, respectively,
per the respective IGAs. The McKee lease rate is roughly double the previous rate, and Mr. Sauer will be responsible
for all management on the lease area of the property. The City will receive all rental income from the McKee property.
ENVIRONMENTAL IMPACTS
There are no significant environmental impacts to Fort Collins. The properties’ land use will not change and existing
farming practices and restoration efforts will continue unchanged.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
BOARD / COMMISSION RECOMMENDATION
At its May 8, 2013 meeting, the Land Conservation and Stewardship Board voted unanimously to recommend that City
Council approve three leases with Harry Sauer to farm dryland winter wheat on portions of Long View Farm Open
Space, Prairie Ridge Natural Area and Coyote Ridge Natural Area.
ATTACHMENTS
1. Location Map
2. Farmable Acreage Map
3. Land Conservation and Stewardship Board minutes, May 8, 2013
70
ORDINANCE NO. 081, 2013
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING DRYLAND FARM LEASES TO HARRY SAUER ON
LONG VIEW FARM OPEN SPACE, PRAIRIE RIDGE NATURAL AREA,
AND COYOTE RIDGE NATURAL AREA
WHEREAS, in 1997 the City, Larimer County (“County”) and the City of Loveland
(“Loveland”) purchased a parcel of land located in Larimer County, Colorado known as Long View
Farm Open Space, as described on Exhibit “A” attached and incorporated herein by reference
(“Longview Farm”), with the City owning a 33% interest, the County 50%, and Loveland 17%; and
WHEREAS, the City, County and Loveland purchased Longview Farm in accordance with
an intergovernmental agreement dated April 14, 1997; and
WHEREAS, in 2000, the City and Loveland purchased a parcel of land located in Larimer
County, Colorado, known as Prairie Ridge Natural Area, as described on Exhibit “B” attached and
incorporated herein by reference (“Prairie Ridge”), with the City owning a 25% interest and
Loveland owning 75%; and
WHEREAS, the City and Loveland purchased Prairie Ridge in accordance with an
intergovernmental agreement dated March 22, 2000; and
WHEREAS, the City is the owner of a parcel of land located in Larimer County, Colorado
known as McKee Farm, which is part of Coyote Ridge Natural Area, as described on Exhibit “C”
attached and incorporated herein by reference (“McKee Farm”); and
WHEREAS, Longview Farm, Prairie Ridge and McKee Farm (collectively, the “Properties”)
were all farmed by Harry Sauer prior to their acquisition by the City, County and Loveland, and Mr.
Sauer has continued farming the Properties under various leases and lease extensions previously
approved by the City Council; and
WHEREAS, the Properties were purchased for open space and general natural areas
purposes, which would be advanced by the continuation of dryland farming; and
WHEREAS, in 2011 the City conducted a Request for Proposal process for new dryland
farming leases on the Properties, and Mr. Sauer’s proposal was selected; and
WHEREAS the City, County and Loveland have worked together to draft new leases for each
of the Properties that are nearly identical in terms and conditions in order to allow consistency in
management across the three Properties; and
WHEREAS, the lease rate for each lease would be $20 per acre annually for a lease term of
five years; and
WHEREAS, the lease payments for Longview would be retained by the County, the lease
payments for Prairie Ridge would be retained by Loveland, and the City would receive the lease
payments for McKee Farm; and
71
WHEREAS, copies of the proposed lease agreements are on file in the office of the City
Clerk and are available for inspection; and
WHEREAS, under Section 23-111(a) of the City Code, the City Council is authorized to sell,
convey or otherwise dispose of any and all interests in real property owned in the name of the City,
provided that the City Council first finds, by ordinance, that such disposition is in the best interests
of the City.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1. That the City Council hereby finds that leasing Longview Farm, Prairie Ridge,
and the McKee Farm portion of Coyote Ridge Natural Area to Harry Sauer for dryland farming under
the terms listed above is in the best interests of the City.
Section 2. That the City Manager is hereby authorized to execute lease agreements for
the Properties on terms and conditions consistent with this Ordinance, together with such additional
terms and conditions as the City Manager, in consultation with the City Attorney, determines to be
necessary or appropriate to protect the interests of the City, including, but not limited to, any
necessary changes to the legal descriptions of the Properties, as long as such changes do not
materially increase the size or change the character of the property to be leased.
Introduced, considered favorably on first reading, and ordered published this 4th day of
June, A.D. 2013, and to be presented for final passage on the 18th day of June, A.D. 2013.
_________________________________
Mayor
ATTEST:
_____________________________
City Clerk
Passed and adopted on final reading on the 18th day of June, A.D. 2013.
_________________________________
Mayor
ATTEST:
_____________________________
City Clerk
72
Exhibit A
73
74
EXHIBIT B
Legal Description of Prairie Ridge
75
EXHIBIT C
76
DATE: June 18, 2013
STAFF: Josh Weinberg
AGENDA ITEM SUMMARY
FORT COLLINS CITY COUNCIL 12
SUBJECT
Second Reading of Ordinance No. 083, 2013, Designating the Johnson Farm Property, 2608 East Drake Road as
a Fort Collins Landmark Pursuant to Chapter 14 of the City Code.
EXECUTIVE SUMMARY
This Ordinance, adopted by a vote of 6-0 (Campana recused) on First Reading on June 4, 2013, designates the
Johnson Farm Property at 2608 East Drake Road as a Fort Collins Landmark. The owner of the property, Gino
Campana of Johnson Farm LLC, is initiating this request.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on Second Reading.
ATTACHMENTS
1. Copy of First Reading Agenda Item Summary - June 4, 2013
(w/o attachments)
77
COPY
COPY
COPY
ATTACHMENT 1
DATE: June 4, 2013
STAFF: Josh Weinberg
AGENDA ITEM SUMMARY
FORT COLLINS CITY COUNCIL 26
SUBJECT
First Reading of Ordinance No. 083, 2013, Designating the Johnson Farm Property, 2608 East Drake Road as a Fort
Collins Landmark Pursuant to Chapter 14 of the City Code.
EXECUTIVE SUMMARY
The owner of the property, Gino Campana of Johnson Farm LLC, is initiating this request for Fort Collins Landmark
designation for the Johnson Farm Property at 2608 East Drake Road.
BACKGROUND / DISCUSSION
The property is eligible for designation as a Fort Collins Landmark under Designation Standards 1, 2, and 3 for its
association with significant historical events and persons, and also for its architectural significance to Fort Collins.
The Johnson Farm is significant under Standard One (1) for its association with agricultural contexts in Fort Collins
since the late nineteenth century, including the open range cattle industry, farming and ranching, and sheep raising.
The property is additionally significant under Standard Two (2) for its association with several prominent Fort Collins
citizens, including Charles Evans and the Johnson brothers: Elmer, Wesley, Edwin, and Harvey. The Johnsons first
moved to Fort Collins in 1902 where they established multiple farms in the area. Throughout the twentieth century,
the Johnsons thrived in farming and stock raising. One Johnson brother in particular, Harvey, exerted significant
political influence in the city as President of the Water Supply and Storage Company and Mayor from 1963 to 1967.
Furthermore, the property also holds significance under Standard Three (3). Its two farmhouses, built in the 1910s
by Elmer Johnson, are excellent examples of vernacular agricultural architecture. Also, the Johnson barn, built around
1918, represents one of the city’s few remaining examples of a bank barn. It is built into the side of the land’s natural
grade to provide livestock easier access to forage stored in the barn.
FINANCIAL / ECONOMIC IMPACTS
Recognition of the Johnson Farm Property at 2608 East Drake Road as a Fort Collins Landmark enables its owner
to qualify for federal, state and local financial incentive programs available only to designated properties. Additionally,
based upon research conducted by Clarion Associates, the property would see an increase in value following
designation. Clarion Associates attributed this increase to the fact that future owners also qualify for the financial
incentives; the perception that designated properties are better maintained; the appeal of owning a recognized historic
landmark; and the assurance of predictability that design review offers.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
BOARD / COMMISSION RECOMMENDATION
At a public hearing held on April 10, 2013, the Landmark Preservation Commission voted unanimously 8-0 to
recommend designation of this property under Designation Standards 1, 2, and 3 for its association with significant
historical events and persons, and also for its architectural significance to Fort Collins.
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June 4, 2013 -2- ITEM 26
ATTACHMENTS
1. Location and Vicinity Maps
2. Historic Landmark Designation Nomination Form and Signed Consent Form
3. LPC Staff Report
4. Resolution 6, 2013, Landmark Preservation Commission, Recommending Landmark Designation of the
Johnson Farm Property.
5. Photos of Property
6. PowerPoint presentation
79
ORDINANCE NO. 083, 2013
OF THE COUNCIL OF THE CITY OF FORT COLLINS
DESIGNATING THE JOHNSON FARM PROPERTY, 2608 EAST DRAKE ROAD,
FORT COLLINS, COLORADO, AS A FORT COLLINS LANDMARK PURSUANT
TO CHAPTER 14 OF THE CODE OF THE CITY OF FORT COLLINS
WHEREAS, pursuant to Section 14-2 of the City Code, the City Council has established a
public policy encouraging the protection, enhancement and perpetuation of landmarks within the
City; and
WHEREAS, by Resolution dated April 10, 2013, the Landmark Preservation Commission
(the "Commission") has determined that the Johnson Farm Property has significance to Fort Collins
under Landmark Designation Standards (1), (2), and (3) for its association with significant historical
events and persons, and also for its architectural significance to Fort Collins; and
WHEREAS, the Commission has further determined that said property meets the criteria of
a landmark as set forth in Section 14-5 of the Code and is eligible for designation as a Landmark,
and has recommended to the City Council that said property be designated by the City Council as
a landmark; and
WHEREAS, the owner of the property, Gino Campana on behalf of Johnson Farm LLC, has
consented to such landmark designation; and
WHEREAS, such landmark designation will preserve the property's significance to the
community; and
WHEREAS, the City Council has reviewed the recommendation of the Commission and
desires to approve such recommendation and designate said property as a landmark.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1. That the property known as the Johnson Farm Property, and the adjacent lands
upon which the historical resources are located in the City of Fort Collins, Larimer County,
Colorado, described as follows, to wit:
Lot 1, Block 7 of Bucking Horse Filing Two, Located in Section 20, Township 7
North, Range 68 West of the 6th Principal Meridian, City of Fort Collins, State of
Colorado.
be designated as a Fort Collins Landmark according to City Code Chapter 14.
Section 2. That the criteria in Section 14-48 of the City Code will serve as the standards
by which alterations, additions and other changes to the buildings and structures located upon the
above described property will be reviewed for compliance with Chapter 14, Article III, of the City
Code.
80
Introduced, considered favorably on first reading, and ordered published this 4th day of June,
A.D. 2013, and to be presented for final passage on the 18th day of June, A.D. 2013.
_________________________________
Mayor
ATTEST:
_____________________________
City Clerk
Passed and adopted on final reading on the 18th day of June, A.D. 2013.
_________________________________
Mayor
ATTEST:
_____________________________
City Clerk
81
DATE: June 18, 2013
STAFF: Helen Matson,
Craig Foreman
AGENDA ITEM SUMMARY
FORT COLLINS CITY COUNCIL 13
SUBJECT
Postponement of Second Reading of Ordinance No. 084, 2013 Authorizing the Conveyance of Four Easements, a
Temporary Construction Easement and a Revocable Permit on City Right-of-Way and City-Owned Property to Linden
Bridges LLC for the Encompass-River District Block One Mixed Use Development to July 2, 2013.
EXECUTIVE SUMMARY
Encompass – River District Block One Mixed Use Development is a mixed use development at 418 Linden Street
consisting of office space, residential space and a restaurant. The property is owned by Linden Bridges LLC. Several
easements are required for this project for improvements in the right-of-way, bank stabilization and river enhancement,
drainage and landscape areas. The Developer has requested that Second Reading of this Ordinance authorizing the
conveyance of easements, be postponed until July 2, 2013, due to scheduling conflicts with the developer and the
consultant.
STAFF RECOMMENDATION
Staff recommends postponement of the Ordinance on Second Reading to July 2, 2013.
82
DATE: June 18, 2013
STAFF: Darin Atteberry
AGENDA ITEM SUMMARY
FORT COLLINS CITY COUNCIL 14
SUBJECT
First Reading of Ordinance No. 085, 2013, Appropriating Unanticipated Revenue in the General Fund to be Remitted
to the Fort Collins Housing Authority to Fund Affordable Housing and Related Activities.
EXECUTIVE SUMMARY
The Fort Collins Housing Authority paid the City of Fort Collins $3,169 as the 2012 payments for public services and
facilities. The Authority requests that the City refund those payments, also known as Payment in Lieu of Taxes
(PILOT), to fund sorely needed affordable housing related activities and to attend to the low-income housing needs
of Fort Collins residents.
Resolution 1992-093 reinstated the requirement that the Authority make annual PILOT payments to the City. The City
may spend the PILOT revenues as it deems appropriate in accordance with law, including remitting the funds to the
Authority if the Council determines that such remittal serves a valid public purpose. The Council has annually remitted
the PILOT payment to the Authority since 1992.
BACKGROUND / DISCUSSION
On December 16, 1971, the City and the Authority entered into a Cooperative Agreement which provided that the
Authority must make annual PILOT payments to the City for the public services and facilities furnished by the City.
In 1986, upon request of the Authority, the City Council adopted a resolution which relieved the Authority of its
obligation to make the PILOT payments. Based on that resolution, the Authority did not make PILOT payments from
1987 through 1990. The Authority also received a refund from the City of PILOT payments for the years 1984, 1985
and 1986.
In 1992, the City Council approved a change in the Cooperative Agreement to reinstate the requirement that the
Authority make the annual PILOT payment. The change was done to clarify that PILOT payments are owed to the
City and to avoid the possibility that the Department of Housing and Urban Development might require the Authority
to return the PILOT payments to the federal government. Since that time, the City has refunded the annual PILOT
payments to the Housing Authority.
Staff recommends that the 2012 PILOT payments of $3,169 be appropriated as unanticipated revenue in the General
Fund and remitted to the Authority with the recommendation that the Authority use the funds in the manner consistent
with HUD guidelines. The intended use for the funds is affordable housing and related activities.
FINANCIAL / ECONOMIC IMPACTS
The City received unanticipated revenue from the Fort Collins Housing Authority in the amount of $3,169 as 2012
payments for public services and facilities. The revenue was placed in the General Fund. This Ordinance will allow
the return of the funds to the Housing Authority to be used for affordable housing and related activities.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
ATTACHMENTS
1. Letter from the Fort Collins Housing Authority, April 24, 2013
83
ATTACHMENT 1
84
ORDINANCE NO. 085, 2013
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROPRIATING UNANTICIPATED REVENUE IN THE GENERAL FUND
TO BE REMITTED TO THE FORT COLLINS HOUSING AUTHORITY TO FUND
AFFORDABLE HOUSING AND RELATED ACTIVITIES
WHEREAS, the City has received a payment from the Fort Collins Housing Authority
(the “Authority”) of $3,169 in satisfaction of its 2012 payment in lieu of taxes (“PILOTs”); and
WHEREAS, the Authority has requested that the 2012 PILOT payment be appropriated
by the City Council for expenditure by the Authority to fund much-needed affordable housing
related activities and to attend to the housing needs of low-income Fort Collins residents; and
WHEREAS, said payment of $3,169 was not projected as a revenue source in the 2012
City budget; and
WHEREAS, the City may spend the PILOT revenues as it deems appropriate in
accordance with law, including remitting the funds to the Authority if Council determines that
such remittal serves a valid public purpose; and
WHEREAS, the City Council has determined that the provision of affordable housing
serves an important public purpose and is an appropriate use of these PILOT revenues; and
WHEREAS, Article V, Section 9 of the City Charter permits the City Council to make
supplemental appropriations by ordinance at any time during the fiscal year, provided that the
total amount of such supplemental appropriations, in combination with all previous
appropriations for that fiscal year, does not exceed the current estimate of actual and anticipated
revenues to be received during the fiscal year; and
WHEREAS, City staff has determined that the appropriation of the Authority PILOT
payment as described herein will not cause the total amount appropriated in the General Fund to
exceed the current estimate of actual and anticipated revenues to be received in that fund during
any fiscal year.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS that there is hereby appropriated from unanticipated revenue in the General
Fund the sum of THREE THOUSAND ONE HUNDRED SIXTY NINE DOLLARS ($3,169) to
be remitted to the Fort Collins Housing Authority to fund affordable housing and related
activities for Fort Collins residents consistent with the Federal Department of Housing and
Urban Development guidelines.
85
Introduced, considered favorably on first reading, and ordered published this 18th day of
June, A.D. 2013, and to be presented for final passage on the 2nd day of July, A.D. 2013.
_________________________________
Mayor
ATTEST:
_____________________________
City Clerk
Passed and adopted on final reading on the 2nd day of July, A.D. 2013.
_________________________________
Mayor
ATTEST:
_____________________________
City Clerk
86
DATE: June 18, 2013
STAFF: John Stokes, Mark Sears
Tawyna Ernst
AGENDA ITEM SUMMARY
FORT COLLINS CITY COUNCIL 15
SUBJECT
First Reading of Ordinance No. 086, 2013, Authorizing the Conveyance of a Non-Exclusive Access Easement on
Fossil Creek Wetlands Natural Area to Paragon Estates Homeowners Association.
EXECUTIVE SUMMARY
The Natural Areas Department intends to formalize its verbal agreement with Paragon Estates Homeowners
Association (HOA) for access across an existing two-track road off Trilby Road to the HOA’s pumphouse. The
pumphouse is located within an existing irrigation easement on Fossil Creek Wetlands Natural Area. The HOA’s
current access has minimal impact to the Natural Area and no additional impacts are anticipated. Access would be
solely for maintenance and operation of the facilities associated with the existing irrigation easement. No other access
rights are to be conveyed.
BACKGROUND / DISCUSSION
The Natural Areas Department (NAD) acquired the northeast parcel of Fossil Creek Wetlands Natural Area (Fossil
Creek Wetlands) from Paragon Investment Group, LLC (Paragon) in August 1995. Prior to this acquisition, Paragon
had granted an irrigation and access easement to Paragon Point Partners, the forerunner to the Paragon Estates
Homeowners Association (HOA) (see Attachment 2). This access route (which ran due west from the HOA’s property
onto Fossil Creek Wetlands) was never formally developed and an alternate route down the existing two-track road
on Fossil Creek Wetlands off Trilby Road was used. A formal easement was never written or executed; the access
was rather granted via a verbal agreement. The HOA continued to use the two-track road after NAD acquired the
property. After a question was raised regarding construction crews using the two-track to access the HOA property,
NAD requested the historic access be formalized with a permanent access easement for the mutual benefit of both
parties to clarify the type of access allowed.
The two-track access road is also used by the Fort Collins-Loveland Water and Sewer District to access the District’s
sewer line easement on the property and by NAD staff for maintenance and patrol.
Paragon needs vehicular and pedestrian access to its pumphouse along the New Mercer Ditch for operation and
maintenance of irrigation-related activities. The pumphouse provides non-potable irrigation water for Paragon’s open
space tracts and residential properties. This access is for Paragon’s HOA representatives and its contractors who
will service the pumphouse. Access is needed to maintain, replace or repair the pumphouse and to operate the pumps
for irrigation. No other access rights will be conveyed to the HOA.
The access road is established, and the surrounding area is dominated by smooth brome and other non-native
vegetation. NAD has not restored the area and no significant biological impacts are anticipated by continued use of
the road by Paragon.
FINANCIAL / ECONOMIC IMPACTS
There will be no financial impact or gain to NAD for granting this easement due to: the small size of the easement; the
fact that no new road improvements are needed to provide this access; the fact that the existing road is needed by
the City and one other easement holder; the minimal use by the HOA; and the HOA's historic use of this road as
access to their pump house predates the City's ownership of this property.
ENVIRONMENTAL IMPACTS
There will be no significant environmental impact from the project. Impacts from vehicle traffic will be minimized due
to the use of only one access point in the future. Paragon has agreed to allow for passive restoration of the vegetation
along the access route granted in the existing 1994 easement.
87
June 18, 2013 -2- ITEM 15
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
BOARD / COMMISSION RECOMMENDATION
At its May 8, 2013 meeting, the Land Conservation and Stewardship Board voted unanimously to recommend that City
Council approve an access easement across Fossil Creek Wetlands Natural Area to Paragon Estates Homeowners
Association.
ATTACHMENTS
1. Location Map
2. Existing Easement and Proposed Access Easement Map
3. Land Conservation and Stewardship Board minutes, May 8, 2013
88
S Shields St
Ziegler Rd
S Timberline Rd
S Lemay Ave
E Harmony Rd
E Drake Rd
S College Ave
E 57th St
E Trilby Rd
Kechter Rd
Carpenter Rd
W Trilby Rd
W Drake Rd
W 57th St
N Boyd Lake Ave
E County Road 30
Main St
E
C
o
u
nt
y Road 32
N Taft Ave
W Harmony Rd
N County Road 11E
S County Road 5
Crossroads Blvd
N Fairgrounds Ave
W Horsetooth Rd
4th Ave
S
Ma
s
on
St
Buss Grove Rd
N Garfield Ave
N Monroe Ave
Highway
392
Boardwalk Dr
E County Road 36
E Horsetooth Rd
S County Road 9
S County Road 7
S County Road 11
W 71st St
W 66th St
E County Road 34c
S Lemay Ave
E County Road 30
E County Road 30
S County Road 5
E Horsetooth Rd
üZYXW
³I
!"`$
!"`$
±
E TRILBY RD
E. TRILBY RD
Fossil Creek Wetlands
Natural Area
Paragon Estates
Pump House/Filter Plant
Two-track road (proposed access easement)
Exis�ng Irriga�on & Access Easement ±
NAD Access Gate
Paragon Access Easement Loca�on Map
A�achment 2
90
Excerpt from the Land Conservation and Stewardship Board
Meeting Minutes - Wednesday, May 8, 2013
I. Paragon Estates Homeowners Association Access Easement across Fossil Creek
Wetlands Natural Area – Tawnya Ernst
The Natural Areas Department acquired the northeast parcel of Fossil Creek Wetlands Natural
Area (Fossil Creek Wetlands) from Paragon Investment Group, LLC (Paragon) in August of
1995. Prior to this acquisition, Paragon had granted an irrigation and access easement to
Paragon Point Partners, the forerunner to the Paragon Estates Homeowners Association (HOA).
This access route, (which ran due west from the HOA’s property onto Fossil Creek Wetlands)
was never formally developed and an alternate route down the existing two-track road on Fossil
Creek Wetlands off Trilby Road was used. A formal easement was never written or executed,
the access was rather granted via a verbal agreement. The HOA continued to use the two-track
road after NAD acquired the property. After a question was raised regarding construction crews
using the two-track to access the HOA property, NAD requested that the historic access be
formalized with a permanent access easement for the mutual benefit of both parties. The two-
track road is also used by the Fort Collins-Loveland Water and Sewer District to access the
District’s sewer line easement on the property and the NAD staff for maintenance and patrol.
Paragon needs vehicular and pedestrian access to their pump house along the new Mercer Ditch
for operation and maintenance of irrigation-related activities. The pump house provides non-
potable irrigation water for Paragon’s open space tracts and residential properties. This access is
for the Paragon’s HOA representatives and their contractors who will service the pump house.
Access is needed to maintain replace or repair the pump house and to operate the pumps for
irrigation. No other access rights will be conveyed to the HOA.
The access road is established, and the surrounding area is dominated by smooth brome and
other non-native vegetation. NAD has not restored the area and no significant biological impacts
are anticipated by continued use of the road by Paragon.
Linda – Who did the verbal agreement?
Tawnya - Not sure but it was long standing agreement.
Linda – What is a pump house, filter, plant – what does that mean?
Justin - It is their non-potable irrigation system. There is a pipeline that goes from the pump
house that takes non-potable water from the creek to the properties there so they’re not using
municipal water for irrigating green belts and lawns. They have the water rights there.
Kathy – Who maintains that road?
Justin – There shouldn’t be much maintenance, but we will keep it as minimal as possible.
Kathy – Is there a gate there to close?
ATTACHMENT 3
91
Justin – Yes
Michelle – How often is it accessed?
Tawnya – The property is mainly accessed during irrigation season – April through September. -
once a week at first while they are priming and then very minimal after that.
Michelle – What happens when the filter gets clogged?
Tawnya – That’s a good question, I’m not sure, but I can find out for you. What’s in red on the
map is already a formal easement that’s in place so they do have a right to have the pump house
and filet.
Kathy - So, you are going to draw up papers to do exactly what?
Tawnya – To formalize access from here down the yellow dash line (Tawnya refers to Paragon
Access Easement Location Map) to the easement in red and set some restrictions. This access is
solely to reach the pump house and filter plant and help to do maintenance.
Trudy – Can they give us some money for this?
Tawnya – Since we were the party asking to formalize this we felt that since there isn’t any
major impact to the property, we didn’t feel there was any additional financial impact.
John – They probably have a prescriptive easement so that they can get to their water right.
They have a water right there at the pump house. There are probably more informal
arrangements out there just like this on, this is just to really clean these types of things up.
Meeting Adjourned at 7:40 p.m.
Michelle Grooms makes a motion: The Land Conservation and Stewardship Board
recommend that City Council approve an access easement across Fossil Creek
Wetlands Natural Area to Paragon Estates Homeowners Association.
Trudy Haines seconds the motion. Motion was unanimously approved
92
ORDINANCE NO. 086, 2013
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE CONVEYANCE OF A NON-EXCLUSIVE
ACCESS EASEMENT ON FOSSIL CREEK WETLANDS NATURAL AREA
TO PARAGON ESTATES HOMEOWNERS ASSOCIATION
WHEREAS, the City is the owner of a parcel of real property acquired in 1995 known as
Fossil Creek Wetlands Natural Area, which is described on Exhibit “A”, attached and incorporated
herein by reference (the “City Property”); and
WHEREAS, the Paragon Estates Homeowners Association (“HOA”) is the owner of a
pumphouse located on the City Property within an existing irrigation and access easement that was
granted by a former owner of the City Property (the “Existing Easement”); and
WHEREAS, the access route contemplated in the Existing Easement was never developed
or used, as it would have required building a new road through the greenbelt area of the adjacent
subdivision; instead, the HOA, with verbal permission from the former owner of the City Property,
historically used a two-track access road that connects to Trilby Road across the City Property for
access to its pumphouse; and
WHEREAS, an access easement on the two-track road was never formalized or executed and
the two-track road is not otherwise open to the public, but the HOA continued to use the two-track
road for access after the City acquired the City Property; and
WHEREAS, Natural Areas staff believes it is most practical for the HOA to continue using
the two-track road, and would like to grant an easement to the HOA that would establish conditions
and limits on the HOA’s use of the road; and
WHEREAS, the two-track road is also used by Natural Areas staff for maintenance and
patrol, and the HOA’s limited use should have no impact on the City Property; and
WHEREAS, the proposed easement area is shown on Exhibit “B”, attached and incorporated
herein by reference (the “Easement”); and
WHEREAS, because the HOA’s use of the road would be infrequent and would have no real
impact on the City Property, the Easement has minimal value; and
WHEREAS, the road is also the route that the HOA was using even before the City acquired
the City Property; and
WHEREAS, for these reasons, City staff is recommending that the HOA not be charged for
this Easement; and
93
WHEREAS, Section 23-111(a) of the City Code provides that the City Council is authorized
to sell, convey, or otherwise dispose of any and all interests in real property owned in the name of
the City, provided that the City Council first finds, by ordinance, that such sale or other disposition
is in the best interests of the City.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1. That the City Council hereby finds that the conveyance of the Easement on
the City Property to the HOA as provided herein is in the best interests of the City.
Section 2. That the Mayor is hereby authorized to execute such documents as are
necessary to convey the Easement to the HOA on terms and conditions consistent with this
Ordinance, together with such additional terms and conditions as the City Manager, in consultation
with the City Attorney, determines are necessary or appropriate to protect the interests of the City
or to effectuate the purpose of this Ordinance, including, but not limited to, any necessary changes
to the description of the Easement, as long as such changes do not materially increase the size or
change the character of the Easement.
Introduced, considered favorably on first reading, and ordered published this 18th day of
June, A.D. 2013, and to be presented for final passage on the 2nd day of July, A.D. 2013.
_________________________________
Mayor
ATTEST:
_____________________________
City Clerk
Passed and adopted on final reading on the 2nd day of July, A.D. 2013.
_________________________________
Mayor
ATTEST:
_____________________________
City Clerk
94
L
Legal Desscription oof Fossil Creek Wetl
lands Natuural Area Parcel
EXHIBIT A
95
CITY OF FORT COLLINS
PARAGON ESTATES
PARAGON ESTATES
PARAGON ESTATES
PARAGON ESTATES
¹
Paragon HOA Access Easement Area
Created by City of Fort Collins Natural Areas - 2013
Project Area
Larimer County
0100 50
Feet
Paragon HOA Access Easement
Paragon Irrigation Easement
EXHIBIT B
96
DATE: June 18, 2013
STAFF: Seth Lorson
AGENDA ITEM SUMMARY
FORT COLLINS CITY COUNCIL 16
SUBJECT
Resolution 2013-054 Making Findings of Fact and Conclusions Regarding the Appeal of the April 18, 2013 Planning
and Zoning Board Approval of the Max Flats Project Development Plan.
EXECUTIVE SUMMARY
On April 18, 2013, the Planning and Zoning Board considered and approved the application for the Max Flats, Project
Development Plan. On May 2, 2013, a Notice of Appeal was filed seeking to modify the approval.
On June 4, 2013, City Council voted 5-2 (Nays: Cunniff, Overbeck)concluding that the evidence presented did not
indicate the Board failed to conduct a fair hearing by considering evidence relevant to its findings which was
substantially false or grossly misleading, nor did it substantially ignore its previously established rules of procedure.
City Council voted 7–0 that the Planning and Zoning Board properly interpreted and applied the Land Use Code in
approving the Plan, but that, based upon information presented to the City Council on appeal, the City Council
determined that the decision of the Board should be modified by the addition of the following conditions of approval:
a. Five trees must be planted along the west side boundary of the property.
b. Juliet balconies must be installed along the west side of the building as shown on the elevation
presented to the City Council on appeal.
c. The tower elements must be added to the building as shown on the elevation presented to the City
Council on appeal.
d. All materials cladding the building must be consistent on all elevations around the building.
In order to complete the record regarding this appeal, Council should adopt a Resolution making findings of fact and
finalizing its decision on the appeal.
BACKGROUND / DISCUSSION
The Appellant’s Notice of Appeal was based on allegations that the Planning and Zoning Board failed to conduct a fair
hearing in that it considered evidence was substantially false and grossly misleading and that it substantially ignored
its previously established rules of procedure. The Appellant also alleged that the Planning and Zoning Board failed to
properly interpret and apply relevant provisions of the Land Use Code.
STAFF RECOMMENDATION
Staff recommends adoption of the Resolution.
97
RESOLUTION 2013-054
OF THE COUNCIL OF THE CITY OF FORT COLLINS
MAKING FINDINGS OF FACT AND CONCLUSIONS
REGARDING THE APPEAL OF THE APRIL 18, 2013
PLANNING AND ZONING BOARD APPROVAL OF THE
MAX FLATS PROJECT DEVELOPMENT PLAN
WHEREAS, on April 18, 2013, the Planning and Zoning Board (the "Board") approved a
project development plan for the project known as the Max Flats Project Development Plan (the
“Plan”); and
WHEREAS, on May 2, 2013, a Notice of Appeal of the Board's decision was filed with the
City Clerk by Bruce Froseth and Susan Kreul-Froseth(the "Appellants"); and
WHEREAS, on June 4, 2013, the City Council, after notice given in accordance with Chapter
2, Article II, Division 3, of the City Code, considered said appeal, reviewed the record on appeal,
heard presentations from the Appellant and other parties-in-interest and, after discussion, upheld the
decision of the Board with four modifications; and
WHEREAS, City Code Section 2-57(g) provides that no later than the date of its regular
meeting after the hearing of an appeal, City Council shall adopt, by resolution, findings of fact in
support of its decision on the appeal.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT
COLLINS that, pursuant to Section 2-57(g) of the City Code, the City Council hereby makes the
following findings of fact and conclusions:
1. That the grounds for appeal as stated in the Appellant's Notice of Appeal conform to
the requirements of Section 2-48 of the City Code.
2. That the Board conducted a fair hearing in approving the Plan.
3. That the Board properly interpreted and applied the Land Use Code in approving the
Plan, but that, based upon information presented to the City Council on appeal, the
City Council has determined that the decision of the Board should be modified by the
addition of the following conditions of approval:
a. Five trees must be planted along the west side boundary of the property.
b. Juliet balconies must be installed along the west side of the building as shown
on the elevation presented to the City Council on appeal.
c. Tower elements must be added to the building as shown on the elevation
presented to the City Council on appeal.
d. All materials cladding the building must be consistent on all elevations
around the building.
98
Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 18th
day of June, A.D. 2013.
Mayor
ATTEST:
City Clerk
99
DATE: June 18, 2013
STAFF: John Voss
AGENDA ITEM SUMMARY
FORT COLLINS CITY COUNCIL 21
SUBJECT
Resolution 2013-055 Concerning the Fort Collins Urban Renewal Authority and its Tax Increment Revenue Refunding
Bonds (North College Avenue Project), Series 2013, Declaring the City Council’s Present Intent to Appropriate Funds
to Replenish the Reserve Fund Securing Such Bonds, If Necessary; and Authorizing a Cooperation Agreement and
Other Actions Taken in Connection Therewith.
EXECUTIVE SUMMARY
The URA intends to refinance a portion of the debt it originally borrowed from the City in relation to the North College
area. Now that an established revenue stream can be shown to investors, private money can be used to replace City
money. The 2013 bonds require the URA to establish a debt reserve fund. To further facilitate the credit rating on the
replacement debt, the City Council is asked to adopt the Resolution expressing the Council’s intent to replenish the
debt reserve fund if such funds are ever used to make debt payments. With this Resolution, the new URA debt is
expected to have an effective interest rate of 3.3%.
BACKGROUND / DISCUSSION
The North College URA Project Area was created in 2004, allowing the URA to receive incremental property taxes
through 2029. Property tax increment revenue in North College was first received in 2007 and the 2012 property taxes
payable in 2013 are expected to be $1.3 million.
Table 1 - Net Property Tax Increment Revenue $000’s
2007 2008 2009 2010 2011 2012 2013 *
$110 $287 $263 $493 $536 $907 $1,285
*anticipated
A common measure used by lenders in determining risk is the ratio of pledged revenue to debt service, called a
coverage ratio. Investors want that ratio to be high – at least 125%. The current revenue of $1.3 million could support
up to $1 million a year in debt service. The proposed maximum annual debt service of $919,000 yields a good
coverage ratio of 142%.
City Loans to URA
The initial financing model adopted for North College has the City providing initial capital through a loan until the tax
increment revenue reaches a maturity level that can support external financing to third party investors. The City Council
first authorized an Interagency Loan Policy in December 2008, with the most recent amendments approved in
December 2012.
Eight loans have been made by the City to the URA in the North College District. The first loan has been repaid. Table
2 recaps the current status of the loans.
100
June 18, 2013 -2- ITEM 21
Table 2 – North College Loan Status $000’s
Date Project
Original
Value
Current
Balance
Term
Years Rate City Fund Holding
09/2006 Valley Steel, URA start-up
funds
$ 150 $ 0 5 5.55% General Fund
05/2009 North College Market Place,
Phase 1
5,000 4,729 20 2.85% Capital Expansion
12/2010 JAX 173 106 5 2.50% Capital Expansion
06/2011 NEECO 326 326 10 3.01% Storm Drainage
07/2011 Kaufman Robinson 193 193 5 2.46% General Fund
07/2011 North College Market Place,
Phase 2
3,000 2,884 19 4.09% Water Fund
08/2012 North College Road
Improvements
2,700 2,700 18 3.92% Capital Projects BCC
Loans to be refinanced 11,542 10,938 3.44% Weighted average
06/2009 RMI2 5,304 5,304 20 2.50% General Fund
Total North College Area 16,846 16,242
The proposal is to issue enough debt to take out $10.94 million in loans to the City, plus interest and debt issue costs.
For the following reasons the City loan to the URA that relates to RMI is not being refinanced.
• The use of the RMI2 loan proceeds does not qualify the interest to be tax exempt. Therefore the interest rate
would be significantly higher.
• The new market tax credit deal cannot be refinanced until 2017.
• There is not enough revenue capacity to meet external investor expectations. Only about $1 million of the
$5.3 million could be considered for refinancing if the favorable coverage ratio was to be preserved.
The General Fund is holding the URA loan relating to the RMI2. Later this year the loan will be reallocated and held
equally between the Water Fund and Capital Expansion Fund. This will free up some monies in the General Fund.
Future debt payments by the URA will then be allocated appropriately to each fund.
Preliminary Structure of 2013 Bonds
Approximately $11.4 million of bond proceeds will be used to takeout $10.94 million of debt to the City, plus interest
of $254,000, and pay debt issue costs of $206,000. Coupon interest rates vary from 2% for near term bonds and 4%
for longer term bonds. The collective Net Interest Cost is expected to be 3.3%, which compares favorably to 3.44%
weighted average interest rate on the City debt being retired. Future annual payments will vary from $914,000 to
$919,000 through 2029.
City Intent to Replenish Reserves
The Underwriters for the 2013 Bonds have recommended that a debt service reserve fund in the amount of
approximately $920,000 would be advisable for marketing the 2013 Bonds and that purchasing a Surety Policy for such
amount would be preferable to funding such reserve with cash. The cost of such Surety Policy would be $55,000.
If it was ever necessary to draw upon the Surety Policy, the City’s replenishment would repay such draw. Staff prefers
the Surety Policy option but will make a decision later based on the potential impact on the credit rating. The City I snot
legally bound to replenish the reserve fund and it would be subject to annual appropriation of funds by the City Council
in its sole discretion. Sherman & Howard will issue a legal opinion that the City can make this non-binding
commitment.
It is anticipated that the City’s non-binding commitment will result in the replacement debt receiving a credit rating of
Aa3. Without this, and a proven revenue stream, the interest rate would likely be 5% or higher rather than 3.3%.
Authority to Adopt the Resolution
Through the adoption of the URA Resolution, the Urban Renewal Authority is issuing property tax increment revenue
bonds to refinance loans made by the City to the URA. The loans that are being refinanced by the issuance of those
101
June 18, 2013 -3- ITEM 21
bonds were made by the City to finance public infrastructure. No private improvements were financed through the
loans. In order to enhance the marketability of the bonds that are being issued by the URA, staff is recommending
that the City Council adopt a resolution pursuant to which the City Council would indicate that, if the reserve fund for
the bonds is ever drawn upon, the City Council will consider appropriating funds to replenish the reserve fund. This
is not a legally binding obligation but rather is subject to appropriation by the Council, when and if the reserve fund is
drawn upon. (This has sometimes been referred to as a “moral obligation pledge”.)
Since the City cannot be compelled to appropriate funds under this approach, the Resolution and related documents
do not create a debt for purposes of the City Charter or the Colorado Constitution.
A question has been raised by a local citizen as to whether Council actions such as the making of this non-bindling
commitment violates certain provisions of the City Charter. The Charter provisions in question read as follows:
ARTICLE V. FINANCE ADMINISTRATION
PART I. BUDGET AND FINANCIAL MANAGEMENT
Section 15. Appropriations forbidden.
No appropriation shall be made for any charitable, industrial, educational, or benevolent purposes
to any person, corporation, or organization not under the absolute control of the city, nor to any
denominational or sectarian institution or association.
(Ord. No. 10, 1991, § 1(a), 2-19-91, approved, election 4-2-91)
Section 16. City not to pledge credit.
The city shall not lend or pledge its credit or faith, directly or indirectly, or in any manner to or in aid
of any private person or entity for any amount or any purpose whatever, or become responsible for
any debt, contract, or liability thereof.
(Ord. No. 203, 1986, § 1, Part D, 12-16-86, approved, election 3-3-87; Ord. No. 10, 1991, § 1(a), 2-
19-91, approved, election 4-2-91)
These charter provisions are, in all material respects, identical to provisions contained in the Colorado Constitution.
Thus, the limitations contained in the Charter provisions apply to all Colorado municipalities through the state
constitution.
In response to the concerns that have been expressed, staff has conferred with both the City Attorney’s Office and
the City’s bond counsel to ensure that the proposed transaction does not violate either of the provisions in question.
Legal counsel has confirmed the following:
Article V, Section 15 of the City Charter is not applicable in this situation because (1) the Urban Renewal Authority is
under the absolute control of the City (since its governing body is made up of the same members as the City’s
governing body) and it is not a denominational or sectarian institution; and (2) the projects refinanced by the bonds
are public infrastructure projects; thus, the bond proceeds are not being used, either directly or indirectly, for a
charitable, industrial, educational or benevolent purpose.
Article V, Section 16 of the City Charter is not applicable because: (1) the Urban Renewal Authority is a public entity;
(2) the City would not incur any indebtedness or other legally binding obligation by taking the proposed action; and
(3) as noted above, the projects refinanced by the bonds are public infrastructure projects,.
It should be noted that the financing structure being recommended by staff is not unique to the City. Other
municipalities that have utilized this same procedure in connection with tax increment transactions include the City and
County of Denver, the cities of Thornton, Westminster, and Steamboat Springs, and the Town of Avon. The State of
Colorado has also used this type of financing structures for housing, charter schools and higher education.
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June 18, 2013 -4- ITEM 21
Future Financing Model
City staff have communicated to the URA that, going forward, the City intends to only loan money when alternative
financing agreements are not feasible. The reimbursement agreement recently approved for Aspen Heights is an
example of the preferred approach for future development agreements. The Aspen Heights developer will be
reimbursed over time as revenue is collected, rather than in a lump sum upon completion of the project.
Consultants
The URA and City have engaged three firms to help issue the new debt: Sherman & Howard as the Bond Attorney,
BLX as the Financial Advisor and RBC Capital Markets as the Bond Underwriters.
Timeline
June 24 Publish Preliminary Official Statement on Internet Sites
July 9-10 Market Bonds
July 23 Closing
FINANCIAL / ECONOMIC IMPACTS
Property tax revenue in the North College URA plan area is unlikely to decline enough to trigger the use of the Debt
Service Reserve Fund.
The 2013 Bonds will be used to takeout $10.94 million in debt to the City, pay $254,000 of interest and pay $206,000
in delivery date expenses.
Later this summer the City will use some of the returned monies to loan $5 million to the URA for the first Midtown
Project – The Summit (Capstone).
STAFF RECOMMENDATION
Staff recommends adoption of the Resolution.
BOARD / COMMISSION RECOMMENDATION
The Council Finance Committee reviewed and tentatively approved the refinancing and the concept of a Council
Resolution regarding a debt reserve replenishment pledge at its meeting on December 17, 2012 and again on May
20, 2013.
ATTACHMENTS
1. Council Finance Committee minutes, December 17, 2012
2. Council Finance Committee minutes, May 20, 2013
3. Preliminary debt structure, prepared by RBC Capital Markets
4. Powerpoint presentation
103
Finance Administration
215 N. Mason
2nd Floor
PO Box 580
Fort Collins, CO 80522
970.221.6788
970.221.6782 - fax
fcgov.com
Council Audit & Finance Committee
Minutes
12/17/12
10:00 to 11:00
CIC Room
Council Attendees: Mayor Karen Weitkunat, Mayor Pro Tem Kelly
Ohlson, Ben Manvel
Staff: Darin Atteberry, John Voss, Mike Beckstead (via
conference call),Mindy Pfleiger, Chris Donegon,
Megan Bolin, Josh Birks, Bruce Hendee, Harold
Hall, Heather Shepherd
Others: Jim Manire of BLX; Developers Charlie Vater,
Larry Owens, Dan Fredericks, Rick Shannon
Approval of the Minutes of November 19, 2012
Ben Manvel stated that there is a word that should be removed. The words “prior to” in the
sentence “….decision scenarios before prior to the executive session to help with the
discussion.” are repetitive and should be removed. Ben moved to approve the minutes as
amended and Kelly Ohlson seconded the motion. The November minutes are approved as
amended.
URA Debt Refinancing
John Voss presented data showing how refinancing the current URA debt would be beneficial to the
City. The City has loaned a total of $16.8 million to the URA to date. The URA currently owes $16.2
million of that to the City. John said that this is the debt related to the North College Tax Increment
Financing (TIF) district.
Mayor Weitkunat stated that there should be a notation in the presentation materials of any loans the
URA has already paid off.
John Voss said that the City has been waiting for the revenue stream to mature to refinance the URA
debt. Since revenue is now more predictable and reliable, it can be marketed to third party lenders.
Currently, the North College URA financial situation is healthy and able to repay all existing loans under
current terms.
Lenders will require a coverage ratio. For example 135%:
- $1,262/1.35=$935 of URA’s existing cash balance
- At 4.0% we could refinance about $11 million
ATTACHMENT 1
104
- At 5.5% we could refinance about $10 million
Lenders will require Debt Service Reserve Fund equal to annual debt service payment
- Ties up approximately $935 of URA’s existing cash balance
These terms are typical for entities with credit similar to the Fort Collins URA.
With this refinancing, the URA would still owe the City between $5 and $6 million in debt.
John Voss also suggested that if the City were to provide a Moral Obligation Pledge, the debt would then
be viewed as ‘investment grade’. The City’s pledge would free up a additional $1 to $2 million.
Darin Atteberry asked if there would be potential for refinancing to affect the City’s overall credit rating.
Jim Manire, outside bond counsel, said that he would not expect the City’s rating to change in relation
to refinancing.
Mike Beckstead told the Committee that he is in solid support of refinancing and the objective at this
meeting is simply to inform the Committee and discuss it before the topic is presented to the City
Council.
Kelly Ohlson said he would prefer that money savings from the refinancing go to the general fund
instead of the staff recommended Summit Project and Capital Expansion Fund.
Darin Atteberry said that overall, he agrees that the refinancing would be a positive move for the City.
Mike Beckstead said that staff members will recommend this to City Council for consideration in the
April or May, 2013 timeframe.
105
Finance Administration
215 N. Mason
2nd Floor
PO Box 580
Fort Collins, CO 80522
970.221.6788
970.221.6782 - fax
fcgov.com
Council Audit & Finance Committee
Draft of Minutes
5/20/13
10:00 to 12:00
CIC Room
Council Attendees: Mayor Karen Weitkunat, Ross Cunniff, Bob Overbeck
Staff: Darin Atteberry, Mike Beckstead, Carrie Daggett,
Ingrid Decker, Chris Donegon, Harold Hall, John Voss,
Katie Wiggett
Others: Jim Manire, Joel Stewart
Approval of the Minutes of March 18, 2013
Ross Cunniff moved to approve the minutes for the March 18, 2013 meeting. Bob Overbeck seconded
the motion. Minutes were approved unanimously.
Election of Officers
Ross Cunniff nominated the Mayor as chair of the Council Audit and Finance Committee. Bob
Overbeck seconded the nomination.
Other Business
Mike Beckstead announced an additional item on the Agenda. The item “Funding for the Murphy
Center” was added.
URA North College Refinance
John Voss presented the URA’s plan to refinance approximately $11.2 million of the debt it originally
borrowed from the City in relation to the North College area. Because an established revenue stream
can be shown to investors, private money can be used to replace City money. The 2013 bonds require
the URA to establish a debt reserve fund. To better enhance the credit rating on the replacement debt,
the City must pledge to replenish the URA’s debt reserve fund if the URA ever uses the funds to make
debt payments. With the City’s pledge, the new URA debt is expected to have an effective interest rate
of 2.98% and a credit rating of Aa3. Without the City’s pledge, the interest rate would likely be 5% or
higher. The refinancing of this debt will improve the cash flows of the URA and is expected to save
$922,000 through 2029.
The City’s pledge includes a commitment to maintain an unrestricted fund balance in the General Fund
in an amount at least equal to the Reserve Fund Requirement, estimated at $961,000. The General
Fund can easily meet that requirement: at the end of 2012, the collective unrestricted fund balances in
ATTACHMENT 2
106
107
May 31, 2013 9:19 am Prepared by RBC Capital Markets
TABLE OF CONTENTS
Fort Collins Urban Renewal Authority
Tax Increment Revenue Refunding Bonds, Series 2013
(North College Avenue Project)
'Aa3' Est Rating | Callable 12/1/23 @ 100 | 5/31/13 Mkt Rates
**Preliminary Numbers - Subject to Change**
Report Page
Sources and Uses of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Bond Pricing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Bond Summary Statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Bond Debt Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Bond Solution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
ATTACHMENT 3
108
May 31, 2013 9:19 am Prepared by RBC Capital Markets Page 1
SOURCES AND USES OF FUNDS
Fort Collins Urban Renewal Authority
Tax Increment Revenue Refunding Bonds, Series 2013
(North College Avenue Project)
'Aa3' Est Rating | Callable 12/1/23 @ 100 | 5/31/13 Mkt Rates
**Preliminary Numbers - Subject to Change**
Dated Date 07/23/2013
Delivery Date 07/23/2013
Sources:
Bond Proceeds:
Par Amount 10,995,000.00
Net Premium 403,271.50
11,398,271.50
Uses:
Project Fund Deposits:
Proceeds to Takeout Loans - Principal 10,938,089.54
Proceeds to Takeout Loans - Interest 254,057.40
11,192,146.94
Delivery Date Expenses:
Cost of Issuance 101,513.06
Underwriter's Discount 49,477.50
Surety @ 6% (AGM Est) 55,134.00
206,124.56
11,398,271.50
109
May 31, 2013 9:19 am Prepared by RBC Capital Markets Page 2
BOND PRICING
Fort Collins Urban Renewal Authority
Tax Increment Revenue Refunding Bonds, Series 2013
(North College Avenue Project)
'Aa3' Est Rating | Callable 12/1/23 @ 100 | 5/31/13 Mkt Rates
**Preliminary Numbers - Subject to Change**
Maturity Yield to Premium
Bond Component Date Amount Rate Yield Price Maturity (-Discount)
Serial bonds:
12/01/2014 545,000 2.000% 0.760% 101.668 9,090.60
12/01/2015 555,000 3.000% 0.950% 104.763 26,434.65
12/01/2016 570,000 3.000% 1.260% 105.698 32,478.60
12/01/2017 590,000 3.000% 1.590% 105.909 34,863.10
12/01/2018 605,000 3.000% 1.930% 105.417 32,772.85
12/01/2019 625,000 3.000% 2.320% 103.995 24,968.75
12/01/2020 645,000 3.000% 2.550% 102.998 19,337.10
12/01/2021 665,000 3.000% 2.780% 101.628 10,826.20
12/01/2022 685,000 3.000% 3.000% 100.000
12/01/2023 705,000 3.000% 3.130% 98.855 -8,072.25
12/01/2024 725,000 4.000% 3.240% 106.637 C 3.294% 48,118.25
12/01/2025 755,000 4.000% 3.340% 105.734 C 3.427% 43,291.70
12/01/2026 785,000 4.000% 3.440% 104.840 C 3.542% 37,994.00
12/01/2027 815,000 4.000% 3.510% 104.220 C 3.620% 34,393.00
12/01/2028 845,000 4.000% 3.580% 103.603 C 3.690% 30,445.35
12/01/2029 880,000 4.000% 3.650% 102.992 C 3.753% 26,329.60
10,995,000 403,271.50
Dated Date 07/23/2013
Delivery Date 07/23/2013
First Coupon 12/01/2013
Par Amount 10,995,000.00
Premium 403,271.50
Production 11,398,271.50 103.667772%
Underwriter's Discount -49,477.50 -0.450000%
Purchase Price 11,348,794.00 103.217772%
Accrued Interest
Net Proceeds 11,348,794.00
110
May 31, 2013 9:19 am Prepared by RBC Capital Markets Page 3
BOND SUMMARY STATISTICS
Fort Collins Urban Renewal Authority
Tax Increment Revenue Refunding Bonds, Series 2013
(North College Avenue Project)
'Aa3' Est Rating | Callable 12/1/23 @ 100 | 5/31/13 Mkt Rates
**Preliminary Numbers - Subject to Change**
Dated Date 07/23/2013
Delivery Date 07/23/2013
Last Maturity 12/01/2029
Arbitrage Yield 3.089727%
True Interest Cost (TIC) 3.263604%
Net Interest Cost (NIC) 3.295575%
All-In TIC 3.378388%
Average Coupon 3.632958%
Average Life (years) 9.537
Duration of Issue (years) 8.009
Par Amount 10,995,000.00
Bond Proceeds 11,398,271.50
Total Interest 3,809,676.67
Net Interest 3,455,882.67
Total Debt Service 14,804,676.67
Maximum Annual Debt Service 918,900.00
Average Annual Debt Service 905,177.24
Par Average Average PV of 1 bp
Bond Component Value Price Coupon Life change
Serial bonds 10,995,000.00 103.668 3.633% 9.537 7,719.30
10,995,000.00 9.537 7,719.30
All-In Arbitrage
TIC TIC Yield
Par Value 10,995,000.00 10,995,000.00 10,995,000.00
+ Accrued Interest
+ Premium (Discount) 403,271.50 403,271.50 403,271.50
- Underwriter's Discount -49,477.50 -49,477.50
- Cost of Issuance Expense -101,513.06
- Other Amounts -55,134.00 -55,134.00 -55,134.00
Target Value 11,293,660.00 11,192,146.94 11,343,137.50
Target Date 07/23/2013 07/23/2013 07/23/2013
Yield 3.263604% 3.378388% 3.089727%
111
May 31, 2013 9:19 am Prepared by RBC Capital Markets Page 4
BOND DEBT SERVICE
Fort Collins Urban Renewal Authority
Tax Increment Revenue Refunding Bonds, Series 2013
(North College Avenue Project)
'Aa3' Est Rating | Callable 12/1/23 @ 100 | 5/31/13 Mkt Rates
**Preliminary Numbers - Subject to Change**
Period
Ending Principal Coupon Interest Debt Service
12/01/2013 132,426.67 132,426.67
12/01/2014 545,000 2.000% 372,450.00 917,450.00
12/01/2015 555,000 3.000% 361,550.00 916,550.00
12/01/2016 570,000 3.000% 344,900.00 914,900.00
12/01/2017 590,000 3.000% 327,800.00 917,800.00
12/01/2018 605,000 3.000% 310,100.00 915,100.00
12/01/2019 625,000 3.000% 291,950.00 916,950.00
12/01/2020 645,000 3.000% 273,200.00 918,200.00
12/01/2021 665,000 3.000% 253,850.00 918,850.00
12/01/2022 685,000 3.000% 233,900.00 918,900.00
12/01/2023 705,000 3.000% 213,350.00 918,350.00
12/01/2024 725,000 4.000% 192,200.00 917,200.00
12/01/2025 755,000 4.000% 163,200.00 918,200.00
12/01/2026 785,000 4.000% 133,000.00 918,000.00
12/01/2027 815,000 4.000% 101,600.00 916,600.00
12/01/2028 845,000 4.000% 69,000.00 914,000.00
12/01/2029 880,000 4.000% 35,200.00 915,200.00
10,995,000 3,809,676.67 14,804,676.67
112
May 31, 2013 9:19 am Prepared by RBC Capital Markets Page 5
BOND SOLUTION
Fort Collins Urban Renewal Authority
Tax Increment Revenue Refunding Bonds, Series 2013
(North College Avenue Project)
'Aa3' Est Rating | Callable 12/1/23 @ 100 | 5/31/13 Mkt Rates
**Preliminary Numbers - Subject to Change**
Period Proposed Proposed Total Adj Revenue Unused Debt Serv
Ending Principal Debt Service Debt Service Constraints Revenues Coverage
12/01/2013 132,427 132,427 1,300,000 1,167,573 981.67537%
12/01/2014 545,000 917,450 917,450 1,300,000 382,550 141.69710%
12/01/2015 555,000 916,550 916,550 1,300,000 383,450 141.83623%
12/01/2016 570,000 914,900 914,900 1,300,000 385,100 142.09203%
12/01/2017 590,000 917,800 917,800 1,300,000 382,200 141.64306%
12/01/2018 605,000 915,100 915,100 1,300,000 384,900 142.06098%
12/01/2019 625,000 916,950 916,950 1,300,000 383,050 141.77436%
12/01/2020 645,000 918,200 918,200 1,300,000 381,800 141.58135%
12/01/2021 665,000 918,850 918,850 1,300,000 381,150 141.48120%
12/01/2022 685,000 918,900 918,900 1,300,000 381,100 141.47350%
12/01/2023 705,000 918,350 918,350 1,300,000 381,650 141.55823%
12/01/2024 725,000 917,200 917,200 1,300,000 382,800 141.73572%
12/01/2025 755,000 918,200 918,200 1,300,000 381,800 141.58135%
12/01/2026 785,000 918,000 918,000 1,300,000 382,000 141.61220%
12/01/2027 815,000 916,600 916,600 1,300,000 383,400 141.82850%
12/01/2028 845,000 914,000 914,000 1,300,000 386,000 142.23195%
12/01/2029 880,000 915,200 915,200 1,300,000 384,800 142.04545%
10,995,000 14,804,677 14,804,677 22,100,000 7,295,323
113
1
1
City’s Pledge for URA Refinancing
City Council
June 18, 2013
2
Overview
• City has loaned money to the URA
• Looking to refinance some of those loans with
external investors
• A ‘moral obligation pledge’ by City Council
enhances the credit rating
• Returns about $11.2 million, including interest, to
the City
ATTACHMENT 4
114
2
3
City Loans to URA for N. College
Date Project
Orig.
Value
Current
Balance
Term
Years Rate City Fund Holding
09/06 V. Steel, URA start-up funds $ 150 $ 0 5 5.55% General Fund
05/09 N.C. Market Place, phase 1 5,000 4,729 20 2.85% Capital Expansion
12/10 JAX 173 106 5 2.50% Capital Expansion
06/11 NEECO 326 326 10 3.01% Storm Drainage
07/11 Kaufman Robinson 193 193 5 2.46% General Fund
07/11 N.C. Market Place, phase 2 3,000 2,884 19 4.09% Water Fund
08/12 N.C. Road Improvements 2,700 2,700 18 3.92% Capital Projects
BCC
Loans to be refinanced 11,542 10,938 3.44% Weighted average
06/09 RMI2 5,304 5,304 20 2.50% General Fund
Total North College Area 16,846 16,242
$000’s
4
North College TIF District
• Created in 2004, expires in 2029
• Increment on property taxes, none on sales tax
• Property tax increment revenue started flowing in 2007
• Revenue is now mature and stable, more attractive to
investors
* anticipated
2007 2008 2009 2010 2011 2012 2013 *
$110 $287 $263 $493 $536 $907 $1,285
Tax Increment Revenue $000s
115
3
5
If approved, the City Pledges to:
• Replenish the URA’s debt service reserve fund, if it
were to used to make debt payments
– Non-binding; pledge is to consider replenishing
– However, not honoring the pledge would significantly impact
the City’s credit rating and ability to borrow money in future
6
Concerns about Ability to Pledge
• Article V, Section 15 Appropriations Forbidden, No appropriation shall be made
for any charitable, industrial, educational, or benevolent purposes to any person,
corporation, or organization not under the absolute control of the city, nor to any
denominational or sectarian institution or association.
– does not apply because:
1. URA is under absolute control of City
2. Projects being refinanced were for public infrastructure projects
• Article V, Section 16 City not to pledge credit, The city shall not lend or pledge
its credit or faith, directly or indirectly, or in any manner to or in aid of any private
person or entity for any amount or any purpose whatever, or become responsible for
any debt, contract, or liability thereof.
– does not apply because:
1. URA is public entity
2. Moral obligation is not debt or legal obligation
3. Projects refinanced are public infrastructure projects
116
4
7
Pledge is Not Unique
• The same tax increment financing procedure is
used by
– City & County of Denver
– City of Thornton
– City of Westminster
– City of Steamboat Springs
– Town of Avon
• State of Colorado uses moral obligation financing
structures for housing, charter schools and higher
education.
8
Benefits and Risks of City Pledge
• Enhances credit rating of URA debt
• Lower interest rate allows for more public
improvements in North College Area
• City already has a risk of not getting paid because
it currently holds the debt
• Without City’s pledge the amount being repaid to
the City would be substantially less than $11.2
million
– instead City would get paid back over many years
117
5
9
Next Steps
• June 24 Publish Preliminary Official Statement
• July 9-10 Market the bonds
• July 23 Closing
10
118
RESOLUTION 2013-055
OF THE COUNCIL OF THE CITY OF FORT COLLINS
CONCERNING THE FORT COLLINS URBAN RENEWAL AUTHORITY AND ITS TAX
INCREMENT REVENUE REFUNDING BONDS (NORTH COLLEGE AVENUE PROJECT),
SERIES 2013, DECLARING THE CITY COUNCIL’S PRESENT INTENT TO
APPROPRIATE FUNDS TO REPL-ENISH THE RESERVE FUND SECURING SUCH
BONDS, IF NECESSARY; AND AUTHORIZING A COOPERATION AGREEMENT AND
OTHER ACTIONS TAKEN IN CONNECTION THEREWITH
WHEREAS, the City Council (the “City Council”) of the City of Fort Collins,
Colorado (the “City”) has heretofore created the Fort Collins Urban Renewal Authority
(“Authority”) as an urban renewal authority pursuant to Colorado Revised Statutes, Part 1 of
Title 31, Article 25, as amended (the “Act”); and
WHEREAS, the City Council by Resolution No. 2004-152 approved and adopted
on December 21, 2004 has authorized and approved the “North College Urban Renewal Plan” as
an urban renewal plan under the Act (the “Plan”) for the area described therein (the “Plan
Area”); and
WHEREAS, in order to undertake certain urban renewal projects within the Plan
Area, the Authority has previously borrowed money from the City and entered into certain prior
loan agreements with the City and executed certain prior promissory notes (collectively, the
“Prior City Loans”) in connection therewith; and
WHEREAS, pursuant to an Indenture of Trust (the “Indenture”) between the
Authority and U.S. Bank National Association, as trustee (the “Trustee”), the Authority is
issuing its Tax Increment Revenue Refunding Bonds (North College Avenue Project), Series
2013 (the “Series 2013 Bonds”) for the purpose of repaying the Prior City Loans made by the
City to the Authority; and
WHEREAS, a reserve fund (the “Reserve Fund”) will be created under the
Indenture to secure the payment of the Series 2013 Bonds and such Reserve Fund is required to
be maintained in an amount equal to the Reserve Fund Requirement (as defined in the
Indenture); and
WHEREAS, the Indenture provides that the Reserve Fund may either be cash
funded or that a reserve fund insurance policy (a “Reserve Fund Policy”) may be deposited in the
Reserve Fund; and
WHEREAS, the City Council wishes to make a non-binding statement of its
present intent with respect to the appropriation of funds for the replenishment of the Reserve
Fund or the repayment of any draws made under any Reserve Fund Policy, if necessary, and to
authorize and direct the City Manager to take certain actions for the purpose of causing requests
for any such appropriation to be presented to the City Council for consideration; and
WHEREAS, in connection with the issuance of the Series 2013 Bonds, it is
necessary and in the best interests of the City to enter into a Cooperation Agreement (the
“Cooperation Agreement”) between the City and the Authority; and
119
2
WHEREAS, there is attached hereto as Exhibit A the proposed form of the
Cooperation Agreement; and
WHEREAS, capitalized terms used herein and not otherwise defined shall have
the meanings given to them in the Indenture.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT
COLLINS, COLORADO:
Section 1. Finding of Best Interests and Public Purpose. The City Council
hereby finds and determines, pursuant to the Constitution, the laws of the State and the City’s
Charter, and in accordance with the foregoing recitals, that adopting this Resolution, entering
into the Cooperation Agreement, and facilitating the issuance of the Series 2013 Bonds by the
Authority to finance the Refunding Project are necessary, convenient, and in furtherance of the
City’s purposes and are in the best interests of the inhabitants of the City; and will serve the
important public purpose of facilitating the repayment of the Prior City Loans by the Authority
to the City.
Section 2. Replenishment of Reserve Fund; Declaration of Intent. To the
extent that the Reserve Fund is cash funded, within 90 days after the City’s receipt of the written
notice from the Trustee of a draw on the Reserve Fund, to the extent that such draw has not been
replenished by another source, as provided in Section 4.06 of the Indenture (the “Written
Notice”), the City shall replenish the Reserve Fund to the Reserve Fund Requirement from
legally available funds of the City, subject to appropriation by the City Council in its sole
discretion. Any such City payment (the “City Payment”) shall be made directly to the Trustee
for deposit in the Reserve Fund in immediately available funds pursuant to the instructions set
forth in the Written Notice. It is the present intention and expectation of the City Council to
appropriate the City Payment requested in any such Written Notice received by the City, within
the limits of available funds and revenues, but this declaration of intent shall not be binding upon
the City Council or any future City Council in any future fiscal year. The City Payments shall
constitute currently appropriated expenditures of the City.
In the event that a Reserve Fund Policy is deposited in the Reserve Fund and the
City receives written notice from the Trustee that it has drawn on the Reserve Fund Policy and
such draw has not been repaid by another source, the City shall repay the provider of the Reserve
Fund Policy in the amount of such draw, plus any interest due thereon, from legally available
funds of the City, subject to appropriation by the City Council in its sole discretion. Any such
payment shall be made directly to the provider of the Reserve Fund Policy. It is the present
intention and expectation of the City Council to appropriate moneys to repay the provider of any
Reserve Fund Policy in the event of a draw thereunder, within the limits of available funds and
revenues, but this declaration of intent shall not be binding upon the City Council or any future
City Council in any future fiscal year. Any such payments shall constitute currently appropriated
expenditures of the City.
This Resolution shall not create a general obligation or other indebtedness or
multiple fiscal year direct or indirect debt or other financial obligation of the City within the
meaning of its Home Rule Charter or any constitutional debt limitation, including Article X,
Section 20 of the Colorado Constitution. Neither this Resolution nor the issuance of the Series
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2013 Bonds shall obligate or compel the City to make City Payments or to repay the provider of
any Reserve Fund Policy in the event of a draw thereunder beyond those appropriated in the City
Council’s sole discretion.
Section 3. Direction to City Manager. To the extent that the Reserve Fund is
cash funded, within five (5) Business Days following a draw on the Reserve Fund to pay the debt
service requirements on the Series 2013 Bonds, to the extent any such draw is not replenished
from another source, the Trustee is required under Section 4.06 of the Indenture to provide
Written Notice of such draw to the City. The Written Notice shall state the amount required to
be paid by the City to restore the Reserve Fund to the Reserve Fund Requirement after
replenishment from all other sources available under the Indenture. The Written Notice shall
also include instructions for making the City Payment. Any such Written Notice is required to
be sent to the City Manager. Upon receipt of a Written Notice by the City Manager, the City
Council hereby authorizes and directs the City Manager to prepare and submit to the City
Council a request for an appropriation of the amount set forth in the Written Notice. Such
request shall be made in sufficient time to enable the City to make the City Payment within 90
days of receipt of the Written Notice as provided in Section 1 hereof.
In the event that a Reserve Fund Policy is deposited in the Reserve Fund and the
City receives written notice from the Trustee that a draw has been made on the Reserve Fund
Policy and such draw has not been repaid from another source, the City Council hereby directs
the City Manager, upon receipt of such notice, to forthwith prepare and submit to the City
Council a request for an appropriation in an amount sufficient to repay the provider of such
Reserve Fund Policy for such draw, plus any interest due thereon.
Section 4. Repayment of Amounts Appropriated. In the event that the City
Council appropriates funds to make a payment as contemplated by Section 1 hereof, any
amounts actually transferred by the City to the Trustee in accordance with the provisions of
Section 1 or transferred by the City to the provider of a Reserve Fund Policy in accordance with
the provisions of Section 1, shall be treated as an advance under the Cooperation Agreement and
shall be repaid by the Authority in accordance with the provisions of the Cooperation
Agreement, on a basis expressly subordinate and junior to that of the Series 2013 Bonds, any
Additional Bonds and any other obligations or indebtedness that is secured or payable in whole
or in part by the Pledged Revenues on a parity with the Series 2013 Bonds.
Section 5. Limitation to Series 2013 Bonds. Unless otherwise expressly
provided by a subsequent resolution of the City Council, the provisions of this Resolution shall
apply only to the replenishment of the Reserve Fund originally established in the Indenture that
secures the payment of the Series 2013 Bonds and shall not apply to any other reserve funds
established in connection with the issuance of any other obligations.
Section 6. Approval of Cooperation Agreement. The Cooperation
Agreement, in substantially the form attached hereto as Exhibit A, is in all respects approved,
authorized and confirmed. The Mayor is hereby authorized and directed to execute and deliver
the Cooperation Agreement, for and on behalf of the City, in substantially the form and with
substantially the same content as attached hereto as Exhibit A, provided that such document may
be completed, corrected or revised as deemed necessary by the parties thereto in order to carry
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out the purposes of this Resolution. The execution of the Cooperation Agreement by the Mayor
shall be conclusive evidence of the approval by the City Council of such document in accordance
with the terms hereof and thereof.
Section 7. Direction to Act. The City Clerk of the City (the “City Clerk”) is
hereby authorized and directed to attest all signatures and acts of any official of the City in
connection with the matters authorized by this Resolution and to place the seal of the City on any
document authorized and approved by this Resolution. The Mayor, the Mayor Pro-Tem of the
City, the City Manager, the Financial Officer, the City Clerk and other appropriate officials or
employees of the City are hereby authorized and directed to execute and deliver for and on
behalf of the City any and all additional certificates, documents, instruments and other papers,
and to perform all other acts that they deem necessary or appropriate, in order to implement and
carry out the transactions and other matters authorized by this Resolution.
Section 8. Ratification. All actions (not inconsistent with the provisions of
this Resolution) heretofore taken by the City Council or the officers, employees or agents of the
City directed toward the issuance of the Series 2013 Bonds by the Authority and the execution
and delivery of the Cooperation Agreement are hereby ratified, approved and confirmed.
Section 9. Severability. If any section, subsection, paragraph, clause or
provision of this Resolution or the documents hereby authorized and approved shall for any
reason be held to be invalid or unenforceable, the invalidity or unenforceability of such section,
subsection, paragraph, clause or provision shall not affect any of the remaining provisions of this
Resolution or such documents, the intent being that the same are severable.
Section 10. Repealer. All prior resolutions, or parts thereof, inconsistent
herewith are hereby repealed to the extent of such inconsistency.
Section 11. Effectiveness. This Resolution shall take effect immediately upon
its passage.
Passed and adopted at a regular meeting of the Council of the City of Fort Collins this
18th day of June, A.D., 2013.
Mayor
ATTEST:
City Clerk
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PUBFIN/1606587.7
Exhibit A
Attach Cooperation Agreement
123
COOPERATION AGREEMENT
BETWEEN THE CITY OF FORT COLLINS AND
THE FORT COLLINS URBAN RENEWAL AUTHORITY
THIS COOPERATION AGREEMENT (this “Agreement”) dated as of ____ __, 2013,
is made and entered into between the CITY OF FORT COLLINS, COLORADO (the “City”)
and the FORT COLLINS URBAN RENEWAL AUTHORITY (the “Authority”).
WHEREAS, the City is a Colorado home rule municipality with all the powers and
authority granted pursuant to Article XX of the Colorado Constitution and its City Charter;
and
WHEREAS, the Authority is a Colorado Urban Renewal Authority, with all the
powers and authority granted to it pursuant to Title 31, Article 25, Part 1, Colorado Revised
Statutes (“C.R.S.”) (the “Urban Renewal Law”); and
WHEREAS, pursuant to Article XIV of the Colorado Constitution, and Title 29,
Article 1, Part 2, C.R.S., the City and the Authority are authorized to cooperate and contract
with one another to provide any function, service or facility lawfully authorized to each
governmental entity; and
WHEREAS, the City Council of the City (the “City Council”) by Resolution No.
2004-152 approved and adopted on December 21, 2004 has authorized and approved the
“North College Urban Renewal Plan” as an urban renewal plan under the Act (the “Plan”) for
the area described therein (the “Plan Area”), and the urban renewal projects described therein
(collectively, the “Project”); and
WHEREAS, the Project is being undertaken to facilitate the elimination and
prevention of blighted areas and to promote redevelopment, conservation and rehabilitation of
the Plan Area; and
WHEREAS, pursuant to section 31-25-112, C.R.S., the City is specifically authorized
to do all things necessary to aid and cooperate with the Authority in connection with the
planning or undertaking of any urban renewal plans, projects, programs, works, operations, or
activities of the Authority, to enter into agreements with the Authority respecting such actions
to be taken by the City, and appropriating funds and making such expenditures of its funds to
aid and cooperate with the Authority in undertaking the Project and carrying out the Plan; and
WHEREAS, the Authority is issuing its Fort Collins Urban Renewal Authority, Tax
Increment Revenue Refunding Bonds (North College Avenue Project), Series 2013 (the
“Series 2013 Bonds”) for the purpose of refinancing certain obligations owing by the
Authority to the City that financed certain urban renewal projects in the Plan Area; and
WHEREAS, the City Council has adopted a Resolution declaring its nonbinding intent
and expectation that it will appropriate any funds requested, within the limits of available
funds and revenues, in a sufficient amount to replenish the Reserve Fund to the Reserve Fund
EXHIBIT A
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Requirement or to repay the provider of any reserve fund insurance policy in the event of a
draw thereunder (the “Replenishment Resolution”) as defined in the Indenture of Trust (the
“Indenture”), between the Authority and U.S. Bank National Association, as trustee (the
“Trustee”); and
WHEREAS, capitalized terms used herein and not otherwise defined shall have the
meanings set forth in the Indenture.
NOW, THEREFORE, in consideration of the mutual promises set forth below, the
City and the Authority agree as follows:
1. LOAN. If the City Council appropriates funds pursuant to the
Replenishment Resolution, such funds shall be a loan from the City to the Authority to be
repaid as provided herein.
2. PAYMENT. (a) All amounts payable by the Authority to the City hereunder
shall constitute “Subordinate Debt” for purposes of the Indenture. The Authority shall cause
such amounts to be paid from and to the extent of Pledged Revenue (as defined in the
Indenture) available for the payment of Subordinate Debt in accordance with the terms of the
Indenture including, in particular, Section 4.04(c) thereof.
(b) The Authority agrees to pay the City interest on the principal balance of
any amounts designated as a loan hereunder at a rate to be determined based upon applicable
City policies in effect at the time of any such loan.
3. FURTHER COOPERATION. (a) The City shall continue to make
available such employees of the City as may be necessary and appropriate to assist the
Authority in carrying out any authorized duty or activity of the Authority pursuant to the
Urban Renewal Law, the Plan, or any other lawfully authorized duty or activity of the
Authority.
(b) The City agrees to assist the Authority and the Trustee by pursuing all
lawful procedures and remedies available to it to collect and transfer to the Authority on a
timely basis all Pledged Revenues for deposit into the Revenue Fund. To the extent lawfully
possible, the City will take no action that would have the effect of reducing tax collections
that constitute Pledged Revenues.
(c) The City agrees to pay to the Authority any Pledged Property Tax
Revenues when, as and if received by the City, but which are due and owing to the Authority
pursuant to the Plan.
(d) In connection with the issuance of the Series 2013 Bonds, the Authority
agrees that so long as the Series 2013 Bonds are outstanding, the Authority shall submit to the
City Manager by February 15 of each year a report in substantially the form set forth as
Exhibit B to the Indenture. The City Manager agrees to submit such report to the City
Council at its first regular meeting in March in each year. Notwithstanding the foregoing,
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failure by the Authority to provide the report required by this Section3(d) of this Agreement
and Section 5.13 of the Indenture or failure by the City Manager to submit such report to the
City Council shall not constitute a default under this Agreement or under the Indenture.
4. SUBORDINATION. The Authority’s obligation under this Agreement to
repay the City for the loan referred to in Section 1 hereof is subordinate to the Authority’s
obligations for the repayment of the Series 2013 Bonds, any Additional Bonds and any other
obligations or indebtedness that is secured or payable in whole or in part by the Pledged
Revenues on a parity with the Series 2013 Bonds.
5. GENERAL PROVISIONS.
(a) Separate Entities. Nothing in this Agreement shall be interpreted in any
manner as constituting the City or its officials, representatives, consultants, or employees as
the agents of the Authority, nor as constituting the Authority or its officials, representatives,
consultants, or employees as agents of the City. Each entity shall remain a separate legal
entity pursuant to applicable law. Neither party shall be deemed hereby to have assumed the
debts, obligations, or liabilities of the other.
(b) Third Parties. Neither the City nor the Authority shall be obligated or
liable under the terms of this Agreement to any person or entity not a party hereto, other than
the Trustee.
(c) Modifications. No modification or change of any provision in this
Agreement shall be made, or construed to have been made, unless such modification is
mutually agreed to in writing by both parties and incorporated as a written amendment to this
Agreement. Memoranda of understanding and correspondence shall not be construed as
amendments to the Agreement.
(d) Entire Agreement. This Agreement shall represent the entire agreement
between the parties with respect to the subject matter hereof and shall supersede all prior
negotiations, representations, or agreements, either written or oral, between the parties
relating to the subject matter of this Agreement and shall be independent of and have no effect
upon any other contracts.
(e) Severability. If any provision of this Agreement is held to be invalid,
illegal or unenforceable, the validity, legality and enforceability of the remaining provisions
shall not in any way be affected or impaired.
(f) Assignment. Except for the pledge under the Indenture, this Agreement
shall not be assigned, in whole or in part, by either party without the written consent of the
other and of the Bank.
(g) Waiver. No waiver of a breach of any provision of this Agreement by
either party shall constitute a waiver of any other breach or of such provision. Failure of
either party to enforce at any time, or from time to time, any provision of this Agreement shall
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PUBFIN/1637930.4
not be construed as a waiver thereof. The remedies reserved in this Agreement shall be
cumulative and additional to any other remedies in law or in equity.
IN WITNESS HEREOF, the parties have caused this Agreement to be executed by their
duly authorized officers on the date above.
CITY OF FORT COLLINS, COLORADO
Mayor
(SEAL)
ATTESTED:
City Clerk
FORT COLLINS URBAN RENEWAL
AUTHORITY
[SEAL]
By
Chairperson, Board of Commissioners
Attest:
By
Executive Director
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u r b a n r e n e w a l a u t h o r i t y
Karen Weitkunat, Chairperson City Council Chambers
Gerry Horak, Vice-Chairperson City Hall West
Bob Overbeck 300 LaPorte Avenue
Lisa Poppaw Fort Collins, Colorado
Gino Campana
Wade Troxell
Ross Cunniff Cablecast on City Cable Channel 14
on the Comcast cable system
Darin Atteberry, Executive Director
Steve Roy, City Attorney
Wanda Nelson, Secretary
The City of Fort Collins will make reasonable accommodations for access to City services, programs, and activities and
will make special communication arrangements for persons with disabilities. Please call 221-6515 (TDD 224-6001) for
assistance.
URBAN RENEWAL AUTHORITY
BOARD OF COMMISSIONERS MEETING
June 18, 2013
(after the Regular Council Meeting)
1. Call Meeting to Order.
2. Roll Call.
3. Agenda Review:
• Executive Director’s Review of Agenda.
4. CITIZEN PARTICIPATION
Individuals who wish to address the Board on items not specifically scheduled on the agenda must first
be recognized by the Chairperson or Vice Chair. Before speaking, please sign in at the table in the
back of the room. The timer will buzz once when there are 30 seconds left and the light will turn yellow.
The timer will buzz again at the end of the speaker’s time. Each speaker is allowed 5 minutes. If there
are more than 6 individuals who wish to speak, the Chairperson may reduce the time allowed for each
individual.
! State your name and address for the record.
! Applause, outbursts or other demonstrations by the audience are not allowed
! Keep comments brief; if available, provide a written copy of statement to Secretary
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5. CITIZEN PARTICIPATION FOLLOW-UP
This is an opportunity for the Chairperson and Commissioners to follow-up on issues raised during
Citizen Participation.
6. Staff Reports.
7. Commissioner Reports.
DISCUSSION ITEMS
The method of debate for discussion items is as follows:
! Chairperson introduces the item number and subject; asks if formal presentation will be
made by staff
! Staff presentation (optional)
! Chairperson requests citizen comment on the item (five-minute limit for each citizen)
! Board questions of staff on the item
! Board motion on the item
! Board discussion
! Final Board comments
! Board vote on the item
Note: Time limits for individual agenda items may be revised, at the discretion of the Chairperson, to
ensure all citizens have an opportunity to speak. Please sign in at the table in the back of the
room. The timer will buzz when there are 30 seconds left and the light will turn yellow. It will buzz
again at the end of the speaker’s time.
8. Consideration and Approval of the Minutes of the May 8 and May 14, 2013 Urban Renewal Authority
Meetings.
9. Resolution No. 058 of the Fort Collins Urban Renewal Authority Authorizing, Approving and Directing
the Issuance, Sale and Delivery by the Authority of Tax Increment Revenue Refunding Bonds (North
College Avenue Project) Series 2013, in the Maximum Aggregate Principal Amount of $11,800,000;
Approving Documents in Connection Therewith; and Ratifying Prior Actions. (staff: John Voss; 5
minute staff presentation; 10 minute discussion)
Property tax revenue in the North College Plan Area has matured and is therefore attractive to outside
investors. The Resolution adopted by the City Council expresses the Council’s intent to replenish the
URA’s debt service reserve fund if such funds are ever used to make debt service payments.
Replenishment of the reserve fund is contingent upon annual appropriation of funds by the City
Council in its sole discretion. The City Council's expression of intent improves the credit rating on the
2013 Bonds. With the City Council Resolution, the 2013 Bonds are expected to have an effective
interest rate of 3.3%, which is slightly less than the weight average of the current loans, 3.44%.
10. Resolution No. 059 of the Fort Collins Urban Renewal Authority Adopting the Storefront Improvement
Program for the North College Urban Renewal Area and Authorizing the Executive Director to Enter
Into Project Reimbursement Agreements. (staff: Tom Leeson, Megan Bolin, Josh Birks; 5 minute
staff presentation; 20 minute discussion)
This Resolution is a formal approval of the Storefront Improvement Program for the North College
Urban Renewal Area. The purpose of the Program is to encourage the voluntary rehabilitation of
commercial buildings, improvements and conditions within the North College Urban Renewal Area
by offering financial assistance (50% of the total project cost, up to a maximum URA contribution of
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$5,000 per storefront) to property owners and/or business tenants seeking to renovate or restore their
commercial storefronts and/or building facades.
11 Other Business.
12. Adjournment.
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DATE: June 18, 2013
STAFF: Wanda Nelson
AGENDA ITEM SUMMARY
URBAN RENEWAL AUTHORITY 8
SUBJECT
Consideration and Approval of the Minutes of the May 8 and May 14, 2013 Urban Renewal Authority Meetings.
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May 8, 2013
Urban Renewal Authority
A meeting of the Fort Collins Urban Renewal Authority, scheduled for May 7, 2013, at the
conclusion of the Regular Council Meeting, was held on Wednesday, May 8, 2013, at 2:22 a.m., in
the Council Chambers of the City of Fort Collins City Hall. Roll call was answered by the following
Boardmembers: Campana, Cunniff, Horak, Overbeck, Poppaw and Troxell.
Boardmembers Absent: Weitkunat
Staff Members Present: Atteberry, Harris, Roy.
Suspension of Rules
Boardmember Cunniff made a motion, seconded by Boardmember Poppaw, to suspend the rules to
consider the agenda items. Yeas: Troxell, Horak, Cunniff, Poppaw, Campana and Overbeck. Nays:
none.
THE MOTION CARRIED.
Citizen Participation
Carolyn White, Counsel for Alberta, requested that all of the collective testimony and responses to
questions from the prior hearing be included. She stated the developer team would agree to all of
the amendments made at the prior hearing.
Consideration and Approval of the Minutes of the
March 27, 2013 Urban Renewal Authority Meeting, Adopted
Boardmember Poppaw made a motion, seconded by Boardmember Overbeck, to approve the
minutes of the March 27, 2013 Urban Renewal Authority meeting. Yeas: Horak, Cunniff, Poppaw,
Campana, Overbeck and Troxell. Nays: none.
THE MOTION CARRIED.
Resolution No. 055 of the Fort Collins Urban Renewal Authority
Approving a Redevelopment and Reimbursement Agreement With the City of Fort Collins,
Walton Foothills Holdings VI, L.L.C., and the Foothills Metropolitan District
Regarding the Redevelopment of Foothills Mall, Adopted as Amended
The following is the staff memorandum for this item.
“EXECUTIVE SUMMARY
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This resolution authorizes and approves the execution of a Redevelopment and Reimbursement
Agreement, by the City Manager of the City of Fort Collins, in connection with the redevelopment
of the Foothills Mall.
BACKGROUND / DISCUSSION
Project Overview
Location
Located within the Midtown Urban Renewal Plan (Adopted, September 2011), the Foothills Fashion
Mall (“Foothills”) encompasses approximately 76.3 acres of property bounded generally on the
north by Swallow Road, on the east by Stanford Road, on the south by Monroe Drive, and on the
west by College Avenue. The project is zoned C-G General Commercial and is located in the
Transit-Oriented Development Overlay District (the “TOD District”).
History
The original Foothills Fashion Mall opened in 1973 and was constructed, owned, and operated by
a partnership that included the Everitt Companies. The Everitt Companies developed numerous real
estate projects during the 1970s, 80s, and 90s throughout Fort Collins. In 1988, Foothills was
expanded to include additional anchor stores (J.C. Penney, Mervyn’s). In 1995, Foothills changed
further with an expansion of the Foley’s (now Macy’s) building.
The Fort Collins Urban Renewal Authority (“URA”) was created by City Council in 1982 to prevent
and eliminate conditions in the community related to certain “blight factors”, as defined in Sections
31-25-101, et seq., Colorado Revised Statutes (the “Urban Renewal Law”). Using tax increment
financing (“TIF”), the URA is able to leverage public and private investment to remediate blight,
which is complimentary to the City’s broader goal of promoting redevelopment and infill in targeted
areas. Midtown Fort Collins has been identified as one of these targeted areas for infill and
redevelopment, primarily because it includes a significant portion of the College Avenue
commercial corridor and the Mason Corridor collectively referred to as the “Community Spine”.
A major influence in Midtown is Foothills Mall. For the first decades of operation, the Mall was
a major regional retail center that attracted shoppers from northern Colorado, southeastern
Wyoming, and southwestern Nebraska. The mall underwent several expansions in 1980s and 1990s,
but nevertheless has experienced declining sales and increasing vacancies, partly due to increasing
competition from newer retail centers in northern Colorado. The loss of two major anchor stores,
Mervyn’s and JC Penny, only further contributed to the mall’s decline and solidified the
revitalization of the mall as a top City priority.
General Growth Properties (GGP) purchased the aging mall in 2003 with plans to revitalize and
redevelop the property. Recognizing the mall has significant barriers to redevelopment, the City
early on explored TIF via the URA as a potential tool to assist with its redevelopment. In the City’s
2005 Economic Action Plan, the mall is identified as the “single most important retail
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redevelopment initiative in the City”, and identifies the establishment of an Urban Renewal Plan
as the “most effective manner for the City to assist in the redevelopment”.
In 2007, the City hired a consultant to conduct an Existing Conditions Survey to determine if the
area contained sufficient conditions according to Urban Renewal Law to declare it blighted. The
2007 Survey affirmed blight factors exist and declared the area blighted. City Council ultimately
adopted Resolution 2007-052 and 2007-053 declaring Foothills Mall blighted and approving the
Foothills Mall Urban Renewal Plan, respectively. Unfortunately, GGP did not initiate any
redevelopment activities and decided to postpone investment because of the economic environment
at the time. In order to preserve the ability to use TIF in the future, City Council passed Resolution
2008-110 which repealed Resolution 2007-053 and dissolved the Foothills Mall Urban Renewal
Plan.
Despite this setback, redevelopment of the mall continued to be a top priority. In 2010, the City
conducted a Redevelopment Study for Midtown; while this analyzed Midtown as a whole, a
significant portion was dedicated to the mall and potential redevelopment scenarios that could
occur. One of the action items from this Study was for staff to examine Midtown for conditions of
blight and determine whether it met statutory qualifications for an Urban Renewal Area.
In February 2011, as a result of the recommended action item, City Council adopted Resolution
2011-008 authorizing and directing staff to prepare an Urban Renewal Plan and Existing
Conditions Survey (Survey) for the Midtown Area, including Foothills Mall. Since the mall had
been previously examined in 2007, staff conducted a basic site evaluation and determined that the
blight factors cited in 2007 remained present in 2011. Ultimately, City Council adopted Resolutions
2011-080 and 2011-081 adopting the Midtown Existing Conditions Survey and Midtown Urban
Renewal Plan, respectively. Conversations between the City and GGP about redevelopment of the
mall continued throughout this time. However, GGP decided not to invest in the property and sold
Foothills Mall and adjacent properties to Walton Foothills Holdings IV, LLC (the “Developer”) in
July 2012.
Seeing redevelopment of Foothills Mall seemed imminent, the URA sent notice mid-July to property
owners and tenants within and immediately adjacent to the mall informing those parties that
ownership had changed. Additionally, the notice solicited redevelopment proposals for the URA
to take into consideration. Although general inquiries were received, the URA only received a
formal proposal from Walton/Alberta. In September 2012, the URA sent the Walton/Alberta a
formal letter selecting them as the developer for the project.
Project Description
Alberta Development Partners in partnership with Walton Street Capital (the “Developers”) intend
to undertake a comprehensive redevelopment of the Foothills Fashion Mall (the “Project”). The
redevelopment will include a mixed-use redevelopment with a commercial/retail component
(734,979 square feet), a commercial parking structure and up to 800 multi-family dwelling units on
76.3 acres.
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Retail
The project proposes to deconstruct portions of existing Foothills and renovate the remaining
original structure, for a 388,084 square foot, one-level, enclosed shopping mall. In addition, various
free standing buildings including the Commons At Foothills Mall Building, the Shops at Foothills
Mall buildings, The Plaza at Foothills Mall, the Corner Bakery, Christy Sports and the Youth
Activity Center building would all be deconstructed. In their place, eight new retail buildings are
proposed along South College Avenue, ranging from 9,300 square feet to 31,715 square feet in size.
Internal to the site, five new retail building are proposed to be located northwest of the existing
enclosed mall. These five building range from 7,636 square feet to 12,000 square feet in size. To the
southeast of the existing mall, four new restaurants are proposed ranging in size from 8,088 square
feet to 124,000 square feet as well as a new, two-story 24,000 square foot Foothills Activity Center
to replace the Youth Activity Center. Additionally, a new 86,754 square foot entertainment and
theater building is proposed located southeast of the new restaurants. The large east green area and
smaller west green plazas anchor the pedestrian network. The commercial component provides a
total of 3,581 parking spaces via a six level, 84,663 foot parking structure and surface parking
spaces.
Residential
The residential component of the project proposes up to 800 multi-family units distributed among
five buildings that will include a mix of studio, one, two, and three bedroom units. Current plans call
for the construction of 446 residential units. The residential component of the project includes 1,422
parking space via three separate subterranean structures (858 spaces), an above ground structure
(472 spaces) and 92 open surface parking stalls. The residential buildings will range in height from
two- to five-stories. Generally, the residential building heights get taller as the project develops
from the north to south along Stanford Road.
Green Development Practices/Components
The Developer is committed to developing an efficient and high performing project in an effort to
meet or exceed many of the objectives identified in the City’s Climate Action Plan. It should be noted
that redevelopment of the Foothills Mall will inherently achieve many significant improvements
including the removal and mitigation of existing hazardous materials (Asbestos), a complete
upgrade of stormwater facilities on-site, and the inclusion of updated HVAC and lighting systems,
which are significantly more efficient than the existing systems.
The Developer is currently engaged with the City of Fort Collins in a modified Integrated Design
Assistance Program (IDAP) in an effort to identify opportunities for improved building
performance. City staff and the Developer’s design team has a scheduled half-day design charrette
on May 3 to identify design opportunities that will result in high-performance buildings that exceed
building code requirements for energy performance. The objectives of that meeting are to identify
proposed design elements that go above and beyond code requirements; to collaborate on new
opportunities for enhanced design features to decrease the project’s carbon impact; to quantify the
project’s carbon impact, and to identify and agree on a clear plan of action to achieve a high
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performance project. The results of the meeting will be provided to City Council under separate
cover.
The Developer has committed to numerous other “green” components within the project, which are
included in Attachment 1 and titled “Foothills Mall Renovation and Fort Collins Green Code
Compliance.” The City of Fort Collins has provided the Developer a response to that memo with
a list of enhancements and additional measures to improve the environmental sustainability of the
project (Attachment 2). The Developer has agreed to comply with those measures and will be
updating their memo to include the enhancements. The updated memo will be provided to City
Council under separate cover.
The Climate Action Plan includes a goal of diverting 50% of waste from the landfills and Alberta
addressed this policy in several ways. As part of the deconstruction/demolition of the existing mall,
Alberta has committed to dismantle the existing structures in manner that diverts at least 50% (by
weight) of all materials from the landfill. Alberta Development has provided a memo which
articulates how this will be accomplished, which is included as Attachment 3. It should be noted
that demolition and construction waste material diversion is included as an agenda item during the
May 3 charrette to identify ways to increase the diversion amount even more.
The recycling plan during operations of the mall is also a key component of the overall waste
diversion goals and several recommendations have been made to the Developer by the City’s
Environmental Services that address this issue. These recommendations are included within the
enhancements and additional measures provided to the Developer to improve the environmental
sustainability of the project (Attachment 2). An overall waste management plan will be developed
for the project and is included as part of the May 3 charrette.
Blight Conditions
A first step in any Urban Renewal Authority project is the determination of whether an area
constitutes a blighted area under Colorado Urban Renewal Law. The principle purpose of
determining blight and creating the related urban renewal plan and programs and/or projects of
redevelopment is to eliminate blight or prevent the spread of blight and/or the further deterioration
of blight areas (Colorado Revised Statutes Section 31-25-107(4.5).
In 2007, the City of Fort Collins commissioned Terrance Ware & Associates to conduct an Existing
Conditions Study to determine if the Foothills Mall area met the statutory requirements to be
determined a “blighted area”. The 2007 study concluded the area was blighted based on six blight
conditions. Furthermore, all of the blight conditions were found to still be in existence in April 2011
when the City conducted a second existing conditions study as part of the Midtown Existing
Conditions Survey, which was third-party verified by MTA Planning & Architecture.
In addition to deterioration of structures, obsolescence of building systems and poor or unsafe
ingress and egress, there were three site conditions that contributed to the determination of blight.
These included: poor and hazardous pedestrian circulation; inadequate vehicular circulation; and,
inadequate drainage facilities. The three site conditions were found to be present, independent of
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each other, in multiple locations; however, all three site conditions were found to exist on the
southwestern portion of the site. The plan identified missing sidewalk connections along College
Avenue, as well as a lack of pedestrian connections from College Avenue to the interior of the site;
inadequate vehicular circulation within the interior of the site due to a lack of drive aisles and curb
and gutter; as well as poor drainage as a result of the topography of the site. In particular, the site
containing Sears is lower than the remaining mall site, and is immediately adjacent to a drainage
ditch. The report states: “Drainage of the 72-acre parcel is highly inadequate. There are only six
drains to facilitate drainage for the entire property. This causes significant back-ups often resulting
in flooding during heavy rainstorms.”
The site plan submitted to and approved by the Planning and Zoning Board on February 7, 2013,
reflects an effort to meet the goals of City Plan, the Land Use Code, and remediate the blight
conditions identified in the 2007 Existing Conditions Study. In addition to the meeting the goals of
City Plan and the Land Use Code, the current site plan remediates the three highlighted blight
conditions in the following manner. In relation to vehicular circulation, the plan reconfigures the
site to provide definite drive aisles with curb and gutter. The proposed drive aisles provide clear
sight lines, and are clearly delineated with landscaped islands. Additionally, the proposed new
building does not extend as far to the west as the existing building, and the existing drainage ditch
is to be accommodated with an underground culvert. This eliminates the “bottleneck” issue and
provides ample space for overall vehicular circulation.
The existing lack of adequate pedestrian connections is alleviated by addressing both the vertical
and horizontal constraints on the site. In order to achieve adequate pedestrian connections to the
interior of the site, a significant amount of fill (roughly eight 8 feet in some locations) is proposed
on the site. The fill would allow the pedestrian connections from College Avenue to the interior of
the site to meet ADA requirements. Additionally, new sidewalks are proposed along College Avenue,
as well as the main entrance into the mall from College Avenue.
Finally, the inadequate drainage on the site is remedied by adding the fill, which allows for
improved flow to the exterior of the site, as well as adding new drainage structures where
appropriate.
Eligible Costs
Certain projects costs are eligible for public assistance per Colorado Revised Statutes relating to
Urban Renewal and Special Districts (Title 32). The types of eligible costs for each (Urban Renewal
and Metro District) are relatively broad and include such categories as:
• Acquisition of a blighted area;
• Demolition and removal of buildings and improvements;
• Installation, construction, or reconstruction of streets, utilities, parks, playgrounds, and
other improvements necessary for carrying out the objectives of the urban renewal plan;
• Carrying out plans for a program through voluntary action and the regulatory process for
the repair, alteration, and rehabilitation of buildings or other improvements in accordance
with the urban renewal plan;
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• Acquisition of any other property where necessary to eliminate unhealthful, unsanitary, or
unsafe conditions, lessen density, eliminate obsolete or other uses detrimental to the public
welfare, or otherwise remove or prevent the spread of blight or deterioration or to provide
land for needed public facilities.
It is important to note that the total amount of eligible costs per the Colorado Revised Statutes is
significantly higher than the $53 million in public assistance being offered. However, the Developer
and the City of Fort Collins established a process to identify project costs that are extraordinary
costs associated with remediating blighted conditions on the property, or costs associated with
public improvements or public infrastructure. These are costs in which there is direct public benefit.
The process of identifying the eligible costs balanced the need to maximize the public benefit while
ensuring the public assistance was the minimum amount necessary to make the project financially
viable.
The following provides a brief description of each of the eligible costs summarized in Table 1 below:
• Land Acquisition: This amount represents the estimated value of the land underlying the
portions of the project that include the public gathering spaces such as the east and west
lawns, the Foothills Activity Center, and other green or public spaces on the site.
• Parking Structure: This cost represents 75% of the parking structure. The structure allows
for greater utilization of site including the public gathering spaces.
• Demolition/Abatement: Demolition and deconstruction of the aging facility represents an
extraordinary cost associated with remediating blight and mitigation the hazardous
materials.
• Fixture and Amenities: This represents urban design enhancements to the public gathering
spaces (east and west lawns) to provide high quality of place.
• Ditch Relocation: Relocating a segment of the Larimer No. 2 ditch to the west side of
College Ave. represents an extraordinary cost associated with remediating blight.
• Site Work: This cost is associated with earthwork (grade and fill), site walls to alleviate
topographic constraints on the site, as well as asphalt paving, curb and gutter, and
sidewalks.
• Utilities: This represents upgrades and improvements to sanitary sewer, storm water, water
lines and fire water systems.
• Soft Costs: Architectural and engineering costs associated with activity center, parking
structure, as well as materials testing, and environmental/abatement management.
• Foothills Activity Center: A publicly owned and operated activity center that includes
gymnasium, public meeting rooms and after-school programs for youth.
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• Pedestrian Crossing/Underpass: A pedestrian connection linking MAX BRT and Foothills
Mall utilizing Larimer No. 2 Ditch alignment under College Ave.
Table 1
Summary of Eligible Costs for Reimbursement
($ Millions)
Public Benefit
Fort Collins provides a high quality of place attributed to the lively historic downtown and the city’s
impressive parks, trails and open space networks. These community assets make Fort Collins an
attractive place for both a well-educated workforce and diverse industries. The redevelopment of
Foothills represents an opportunity to strengthen the existing high quality of place. The Project
meets numerous City Plan policy objectives and occurs in a Targeted Redevelopment Area (as
defined by City Plan). Thus, the project represents an opportunity to achieve more than economic
outcomes but an opportunity to strengthen the overall community.
City Plan Objectives
The Project as proposed meets a variety of City Plan objectives, including but not limited to:
Economic Health
• EH 1.4 – Target the Use of Incentives to Achieve Community Goals: The project will
achieve broader community goals as described, including redevelopment within a Targeted
Infill Area, infrastructure upgrades, and support of transit.
• EH 4.1 – Prioritize Targeted Redevelopment Areas: The Link-N-Greens site is within an
identified targeted redevelopment area in City Plan.
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Community and Neighborhood Livability
• LIV 5.1 – Encourage Targeted Redevelopment and Infill: The Foothills site is
encompassed by the identified targeted redevelopment areas within City Plan. In addition,
the Project meets the purpose of this principle because it:
N Promotes the revitalization of existing, underutilized commercial and industrial
areas;
N Concentrates higher density housing and mixed-use development in locations that
will be served by high frequency transit in the future;
N Promotes reinvestment in an area where infrastructure already exists; and
N Increases economic activity in the area to benefit existing residents and businesses
and may provide the stimulus to redevelop.
• LIV 5.2 – Target Public Investment along the Community Spine: Additionally, the project
occurs in the identified “community spine,” which has been identified as the “highest
priority area for public investment in streetscape and urban design improvements and other
infrastructure upgrades to support infill and redevelopment and to promote the corridor’s
transition to a series of transit-supportive, mixed-use activity centers”.
• LIV 21.4 – Provide Access to Transit: The project includes access to bus stops along
College Avenue, Foothills Parkway and Stanford Road. In addition, the Project lies within
a short walking distance of both the Horsetooth and Swallow MAX stops. Furthermore, the
project will include the construction of a pedestrian underpass across College Avenue
facilitating a safe link to MAX and Mason Corridor.
Transportation
• T 3.3 – Transit Supportive Design: The proposed Project includes significant enhancements
to pedestrian and bicycle connectivity around and thru the site. In addition, the underpass
connection to MAX signifies a major opportunity to connect the Project to the MAX Bus
Rapid Transit system.
Economic Health Strategic Plan
In addition, the project as proposed addresses one of the four goals of the Economic Health
Strategic Plan adopted by City Council in June 2012. This goal is supported by several strategies,
which this project addresses specifically.
Goal 4: Develop community assets and infrastructure necessary to support the region’s employers
and talent.
• Targeted Infill & Redevelopment: This project falls in a defined targeted and infill area and
delivers a significant redevelopment project as a catalyst in the area.
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Midtown Urban Renewal Area
The Midtown Urban Renewal Plan, adopted in 2011 and ratified and confirmed in February 2013,
is intended to stimulate private sector development in the Plan area using a combination of private
and public investment and Urban Renewal Authority financing. Numerous objectives are identified
to guide such investment, and the redevelopment of Foothills Mall accomplishes several, including:
• Facilitate redevelopment by private enterprise through cooperation among developers and
public agencies to plan, design, and build needed improvements.
• Address and remedy conditions in the area that impair or arrest the sound growth of the
City.
• Implement the Comprehensive Plan.
• Redevelop and rehabilitate the area in a manner which is compatible with and
complementary to unique circumstances in the area.
• Improve pedestrian, bicycle, vehicular and transit-related circulation and safety.
• Contribute to increased revenues for all taxing entities.
Financial Investment Overview
On November 8, 2012, exclusive negotiations between the URA and Walton/Alberta were initiated
under an Agreement to Negotiate. Negotiations with regard to the public financing package have
been occurring since. The public financing package includes the dedication of four revenue sources
in the following priority order:
Sources
• Foothills Metropolitan District Capital Mills – The Metro District will pledge 50 mills of
ad valorem real property tax revenue to the bond. This mill levy expires when the bond is
fully repaid or within 25 years, whichever comes first.
• Property Tax Increment – The URA will pledge 100 percent of the annual ad valorem
property tax increment revenue over a 25-year period, less an administrative fee up to a
maximum of 1.5 percent of the gross property tax increment revenue received by the URA.
• Public Improvement Fee – The Developer will impose a 1 percent Public Improvement Fee
(PIF) on all taxable transactions within the Project and pledge these revenues to the bond.
This revenue source sunsets after 30 years.
• Sales Tax Increment – The URA will pledge 100 percent of the annual sales tax increment
generated above a base by the Project related to the City’s 2.25 percent General Fund Sales
Tax rate (the “Core Rate”).
The above priority order works such that the first revenue source pledged to bond repayment is the
last revenue source out. Therefore, the Sales Tax Increment Pledge, despite existing for all 25 years,
will begin to release funds back the City as early as 2018.
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Project Cost Summary
The total redevelopment project is estimated to cost $312 million. These costs are split between the
commercial/retail at approximately $230 million or 74 percent and 446 anticipated residential units
at a total cost of $82 million or 26 percent. The eligible costs described above total (See Table 1)
approximately $53 million or 17 percent of the total cost and 23 percent of the commercial/retail
costs. The eligible costs represents the target amount of bond proceeds to be generated by the
pledged revenues.
Assumptions
The financial analysis resulting in the public finance investment contemplated in the proposed
Redevelopment and Reimbursement Agreement relies on several key assumptions. Each of these
assumptions is described briefly below:
• Project Timing – The financial analysis assumes a May 8 “go” date for commencement of
construction activity. This result in a ground breaking in June/July 2013 and substantial
completion of the project in November 2014. Demolition of the old Sears building, and
construction of the new building in place of Sears, along with the residential is not likely to
be complete until sometime in 2015.
• Annual Sales Per Square Foot – The financial analysis assumes $350 per square foot in
annual retail sales once the project stabilizes, assumed to occur in 2016. This assumption
relies on several inputs, including the average annual sales per square foot figure for all
Malls as provided by the International Council of Shopping Centers ($458 per square foot
for 2012). In addition, Economic & Planning Systems provided a full analysis of retail
transfer, inflow and growth, which was used to project the anticipated retail sales level at
the redeveloped mall (See Attachment 4 for more details).
• Occupancy – The financial analysis assumes, based on the construction schedule, that 80
percent of the gross leasable area will be occupied by retail tenants by December 31, 2015.
This number will grow to 95 percent occupancy and remain at this level by December 31,
2016.
• Retail Sales Growth – The financial analysis assumes that retail sales will grow by 2
percent annually. This pace of growth is consistent with historical growth rates in the City
of Fort Collins of 5.4 percent annually since 1990. In addition, this rate falls short of the
historic growth rate of inflation as measured by the Consumer Price Index, 2.9 percent
annually since 1982.
• Property Value Growth – The financial analysis assumes that real property values will
increase by 1 percent annually. This pace of growth is conservative compared to the
historical growth rate in of real property in Larimer County.
Public Finance Revenue Summary
The Redevelopment and Reimbursement Agreement before the URA Board for consideration
contemplates utilizing the pledged revenues, as described, to support the issuance of a bond by the
Foothills Metro District. The proceeds from the bond issuance are intended to pay or reimburse the
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eligible costs and to pay cost of issuance. As described, the bond will be supported by four revenue
sources.
The primary revenues supporting the bond will come from the Metro District in the form of annual
ad valorem taxes on real property and a PIF. These two revenue sources will generate $50.0 and
$64.7 million respectively between 2015 and 2038, as shown in Table 2, over the 25 year anticipated
life of the bond. In addition, the pledged URA property tax increment will generate approximately
$55.2 million during the same period. By 2017, these three revenue sources will represent $6.4
million in revenue annually, the first full year of stabilized Metro District ad valorem tax, PIF and
property tax increment. Based off the financial analysis, it is anticipated that these three revenue
sources will be able to cover the full debt payment of the bond by the end of 2017.
Table 2
Summary of Public Finance Revenues Generated by the Project, 2015-2038
($ Millions)
In addition, sales tax increment has been pledged to support the issuance of a bond. There are three
components to the sales tax generated by the Project, including:
• Base – Existing sales tax revenue generated by retailers in the Mall and surrounding Project
Area.
• Transfer – Revenue from other areas of the city that shift to the Mall after redevelopment.
• New – The net new revenue, or revenue in excess of base and transfer, associated with the
redeveloped mall project.
In addition, the sales tax revenue can be broken by the various pieces of the effective 3.85 percent
rate. There are two main pieces, including:
• Core City Sales Tax Rate – This corresponds to the long-standing 2.25 percent General
Fund rate.
• Dedicated City Sales Tax Rate – This corresponds to the sum total of four dedicated sales
taxes including: Transportation (0.25 percent), Natural Areas (0.25 percent), Building on
Basics (0.25 percent), and Keep Fort Collins Great (0.85 percent) dedicated sales tax rates
for a total of 1.60 percent.
The revenue generated by the constituent pieces of the Sales Tax rates is summarized in Table 3. The
base, transfer, and new components of the Dedicated City Sales Tax Rate will generate
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approximately $104.6 million between 2015 and 2038. In addition, the Core Rate base Sale Tax
Revenue will generate approximately $44.4 million during the same period. Therefore, the total
revenue generated by the project that is not pledged to the bond is approximately $149.0 million.
Table 3
Summary of Sales Tax Revenue Generated
by the Project, 2015-2038
($Millions)
The Agreement only pledges the transfer and new sales tax revenue related to the Core Rate. Based
on the financial analysis, these sales tax revenues represent approximately $102.7 million or the
anticipated pledge sales tax revenue. However, the Agreement distinguishes between sales tax
pledge and remittance/share. Each item is described below:
• Sales Tax Pledge – The Agreement pledges only tax revenues generated by the Core Rate,
only the tax revenue in excess of the base and defines the base as the 12 months prior to the
modification of the Plan to authorize tax increment.
• Sales Tax Share/Remittance – The Agreement recognizes that the sales tax pledge is only
the extent necessary to support debt service and reserve contributions after all other revenue
sources contribute completely to support the bond.
Public Finance Package Structure
To better understand the structure of the public finance package, Table 4 summarizes the
anticipated sales tax revenue split between the two rates (Core and Dedicated) by the three
components (Base, Transfer, and New). In 2016, the total pledged sales tax revenue to the project
(identified by the yellow) totals $3.1 million of the approximately $4.9 million generated by the Core
Rate (2.25 percent). The City retains the remaining $5.3 million generated by the unpledged
Dedicated Rate (1.60 percent) and Core Rate base. These numbers increase to $3.3 million in
pledged revenue and $5.5 million in retained revenue by 2018.
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Table 4
Annual Summary of Sales Tax Revenue Generated by the Project, 2016 & 2018
As stated, the pledged sales tax revenue serves as the last revenue source to support the issuance
of the bond. Therefore, as the remaining three pledge revenues grow over time the need for pledged
sales tax revenue to support the bonds diminishes to zero. The financial analysis demonstrates this
in the estimated cash flow presented in Table 5.
The bond will likely be issued in 2013 with three years of capitalized interest. Based on forecasts,
revenue will first be available to fund the debt service of the bond in 2015. In 2015, the pledged
revenue sources, excluding the sales tax revenue, will generate approximately $2.1 million towards
bond repayment and reserve contributions. The pledged sales tax revenue will generate an
additional $2.5 million. These two revenue sources combined will generate sufficient revenue (along
with capitalized interest) to cover the debt payment and reserve contributions required by the bond.
The pledged revenue sources, excluding the sales tax revenue, will grow to $6.5 million in 2017
largely due to the delay in property tax valuation and collection. The pledged sales tax revenue is
anticipated to grow to $3.2 million. Together, these revenues will cover the debt payment and the
last sizable portion of the supplemental reserve fund contribution.
Starting in 2018, the pledged revenue sources, excluding sales tax revenue, are anticipated to cover
the debt payment thru the rest of the bond term, which is anticipated to terminate in 2038. As a
result, starting in 2018 the pledged sales tax revenue will not be required to meet debt payments or
reserve contributions. These revenues will, according to the terms of the Agreement, be released
back to the City. At that point, the total sales tax revenue retained by the City will rise to $8.8
million and continue at this rate with 2 percent growth per year. This constitutes a $4.0 million
increase in net new revenues compared to the existing $3.2 million base (both Core and Dedicate
Rates) and estimated $1.6 million in transfer. As a result approximately $8.8 million of the pledge
sales tax is used between 2013 and 2017 to support the debt payment and reserve contributions.
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Table 5
Anticipated Public Finance Cash Flow, 2015-2019
($ Millions)
FINANCIAL / ECONOMIC IMPACTS
Financial Impact to the City
Net Revenue to the City
The financial analysis evaluated the impact of the sales tax pledge over the full 25 years of the bond
term. This provides a fuller understanding of the impact to the City of the sales tax pledge. The total
anticipated sales tax revenue generated by the Core Rate between 2015 and 2038 is approximately
$147 million with $103 million pledged toward the bond issuance (Transfer and New; shown in
yellow), as shown in Table 6. The Dedicated Rate generates approximately $105 million between
2015 and 2038. The grand total of anticipated sales tax is approximately $252 million.
The estimated new revenue between 2015 and 2038 is approximately $117 million. Subtracting the
estimated $8.8 million in tax used to make debt payments and reserve contributions between 2013
and 2017 leaves approximately $108 million in net new to the City or approximately $4.3 million
annually on average.
Table 6
Summary of Sales Tax Revenue Generated by the Project, 2015-2038
($ Millions)
Sensitivity/Risk Analysis
Staff has evaluated 3 risk scenarios that are summarized in Table 7.
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Scenario I – current assumptions on the District bond assume a non-rated issue with a term of 25
years at a 7% interest rate supported by the four pledged revenues as previously discussed. If the
interest rate were to increase to 8%, debt service would increase by $17M and cause an $11M
reduction in the Net New City Revenue.
Scenario II – assumes a 10% reduction in sales per square foot (a reduction from the current
assumption of $350 sq. ft. to $315 sq. ft.) and a reduction in assessed property values of 10%. Metro
District revenues would decline by $20M, Remitted Sales Tax Revenue would increase by $6M, and
Net New City Revenue would decline by $23M, largely driven by the reduction in sales tax receipts.
Scenario III – assume a 20% reduction in sales per square foot (a reduction from the current
assumption of $350 sq. ft. to $280 sq. ft.) and no change to assumed property valuations. Metro
District revenue would decline by $13M, Remitted Sales Tax Revenue would increase by $2M, and
Net New City Revenue would decline by $35M.
In summary, the most significant risk to the City occurs with from a shortfall in sales per square
foot. As previously stated, staff believe the sales per square foot assumption of $350 is conservative
compared with other retail activity benchmark data.
Table 7
Summary of Sensitivity Analysis
($ Millions)
Economic Impact Analysis Overview
The Project will generate economic impacts during construction and operations. The construction
activities, occurring while the Developer builds and renovates Foothills, will generate one-time
impact for construction workers and businesses in the area. The on-going operations of the
redeveloped mall and the occupying tenants will create annual economic impacts, employing
workers in the community and supporting additional economic activity throughout the region.
An economic impact analysis prepared by TIP Strategies and ImpactDataSource evaluates the plan
to redevelop the Foothills Mall (Attachment 5). The analysis uses the Project Development Plan
as approved by the Planning & Zoning (P&Z) Board, on February 7, 2013, as the input, assuming
a $312 million project investment and 446 multi-family residential units.
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The one-time construction activity will support 2,905 workers in the area and support $160.1 million
in new earnings for these works, as shown in Table 8. The redeveloped mall operations represent
the restaurant and retail employment and earnings supported by tenants at the mall. Currently, mall
tenants employ 200-300 workers but employment is trending lower. It is projected that tenants
leasing space in the redeveloped mall will employ a total of 1,200 workers when fully leased. In
total, the mall’s operations will support 1,434 total workers and $28.4 million in workers’ earnings
annually.
Table 8
Summary of One-Time and Annual Economic Impacts
Construction (One-Time) One-Time
Jobs 2,905
Earnings $160,096,057
Average Earnings per Job $55,111
Operations (On-going)** Annual
Jobs 1,434
Earnings $28,375,412
Average Earnings per Job $19,785
In addition to economic impacts, the redevelopment of the mall will generate one-time revenues
collected by the City of Fort Collins. These revenues will be generated by the construction and
renovation investment. Specifically, the redevelopment and construction project will result in sales
and use tax collections, capital expansion fees, building permits and plan check fees. The one-time
revenue from Sales and Use Taxes will total approximately $5.1 million with approximately $4.8
million in construction materials sales and use tax revenue and $197,000 in sales and use tax from
construction worker spending, as shown in Table 9. The total building permit and plan check fees,
capital expansion fees, utility fees, and street oversizing fees will total approximately $12.4 million.
Table 9
Summary of One-Time Fiscal Impacts
Sales and Use Taxes – Construction Materials $4,870,250
Sales and Use Taxes – Construction Worker Spending $197,245
Total Sales & Use Taxes $5,067,495
Building Permit & Plan Check Fees $848,414
Capital Expansion Fees (Less Credits) $3,441,306
Stormwater, Water & Wastewater Fees (Less Credits) $6,332,604
Street Oversizing Fees $1,729,600
Total Permit, Plan Check, and Fees $12,351,924
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ENVIRONMENTAL IMPACTS
Triple Bottom Line Analysis
City staff prepared a Triple Bottom Line Analysis Map (TBLAM) for the Foothills Mall
Redevelopment Project. The purpose of looking at major projects through a triple bottom line lens
is to identify opportunities and issues in an unbiased and broad way. The TBLAM is not used to
make decisions but rather to identify and work to mitigate issues, to optimize solutions whenever
possible, and to inform decisions. The Mall TBLAM is presented in Attachment 6.
The City of Fort Collins is committed to analyzing major projects using a triple bottom line
approach. Over the next several months, the Sustainability Services Area will be working to identify
and optimize the set of tools and approaches to conduct these analyses in conjunction with the
development of the community sustainability plan.
Carbon Footprint
A carbon footprint analysis is being completed for the Mall Redevelopment Project at City Council’s
request. The analysis will evaluate the footprint of the proposed redeveloped mall and compare that
to the footprint of the existing mall and to the existing mall if it were operating under thriving
conditions. A local sustainability engineering consulting firm, The Brendle Group, has been
retained to prepare the analysis in conjunction with City staff. The footprint analysis will be
reviewed and refined at the May 3, 2013 mall charrette and will be provided to City Council by
close of business on May 3rd under separate cover.
Storm Water Quality
The Foothills Redevelopment is required to meet current storm water standards, which will result
in significant upgrades to the site. Runoff will be captured and treated to remove pollutants and
discharged off site at a much slower rate than the existing condition. The storm water management
and treatment facilities will provide significant reductions in peak rates of runoff from the site seen
during all storm events. The reductions will create improvements in the environment downstream
of the site such as reductions in the erosion of channels and improved water quality in rivers and
streams that receive the runoff from the site.
STAFF RECOMMENDATION
Staff recommends adoption of the Resolution.
BOARD / COMMISSION RECOMMENDATION
The Economic Advisory Commission met April 24 and May 1, 2013 and voted 6-1 to recommend the
following:
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“The Economic Advisory Commission believes that the Foothills Mal redevelopment
is an important part of the Fort Collins City Plan and economic vision. As such, the
EAC supports the public finance assistance package for the Foothills Redevelopment
Project as described by City staff. As part of this recommendation ,the EAC highly
recommends good faith efforts by the City in order to understand the full revenue
and cost implications for, and to collaborate with other taxing entities based on
forthcoming rigorous analysis of the forecasted and eventually actual impacts of
redevelopment.”
PUBLIC OUTREACH
The following lists outreach associated with all URA actions related to Foothills Mall.
Outreach between 2007-2008
• April 4, 2007 written notification to property owners and business interests
• April 6, 2007 published notification in the Coloradoan
• April 11, 2007 public open house
• April 17, 2007 City Council meeting, submitting the Existing Conditions Survey to the
Planning and Zoning Board, Poudre School District, and Larimer County
• April 19, 2007 Planning and Zoning Board meeting
• Written notification to taxing entities
• May 15, 2007 City Council meeting, adopting the Foothills Urban Renewal Plan
• November 18, 2008 City Council meeting, dissolving the Foothills Urban Renewal Plan
Outreach between 2011-2013
• January 21, 2011 written notification to property owners and business interests
• February 1, 2011 City Council meeting, authorizing staff to prepare an Existing Conditions
Survey
• April 20, 2011 public open house
• May 17, 2011 City Council meeting, submitting Existing Conditions Survey to the Planning
and Zoning Board, Poudre School District, and Larimer County
• May 19, 2011 written notifications to taxing entities
• July 12, 2011 written notification to property owners and business interests
• 2011, general outreach was also provided throughout the year to community organizations,
such as the South Fort Collins Business Association and Chamber of Commerce
• September 6, 2011 City Council meeting adopting the Midtown Urban Renewal Plan
• July 18, 2012 written notification to property owners and business interests (Mall area only)
• November 8, 2012 URA Board meeting, adopting an Agreement to Negotiate with mall
Owner
• December 12, 2012 written notice to property owners and business interests
• December 12, 2012 published notification in the Coloradoan
• February 28, 2013 City Council meeting, reaffirming the Midtown Existing Conditions
Survey and Urban Renewal Plan
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May 8, 2013
• March 28, 2013 written notice to property owners and business interests regarding the plan
amendment
• March 28, 2013 published notification in the Coloradoan regarding the plan amendment
General Outreach on the Financial Investment Package:
• Economic Advisory Meeting, Special Session, April 24, 2013 and May 1, 2013 (See
Attachment 8)
• Fort Collins Area Chamber of Commerce, Local Legislative Affairs Committee, April 26,
2013
• Open House for Board and Commission Chairs, April 30, 2013”
Deputy City Attorney Daggett suggested making a language change in order to reflect the changes
made to Resolution 2013-042 in the Council deliberation.
Boardmember Cunniff made a motion, seconded by Boardmember Overbeck, to adopt Resolution
No. 055, as amended. Yeas: Cunniff, Poppaw, Campana, Overbeck, Troxell and Horak. Nays:
none.
THE MOTION CARRIED.
Resolution No. 056
of the Fort Collins Urban Renewal Authority
Regarding the Redevelopment of Foothills Mall and Regarding Cooperation
and Partnership with Larimer County on Economic Revitalization Efforts and
the Use of Tax Increment Financing, Adopted as Amended
The following is the staff memorandum for this item.
“EXECUTIVE SUMMARY
In an effort to address some of the concerns raised by Larimer County with regards to the use of tax
increment financing, the proposed resolution directs the City and the Urban Renewal Authority
(URA) to remit an amount equal to 50% of the property tax increment generated from the residential
units associated with the Foothills Mall redevelopment project in each year that those funds are
available after payment of debt service requirements for the District Bonds, as well as the personal
property tax increment revenues from the Mall.
BACKGROUND DISCUSSION
Representatives of the City of Fort Collins and Larimer County have been engaged for several
months in a discussion of the potential impacts to the County of the use by the City and the URA of
tax increment financing, and in particular, for the Foothills Mall redevelopment project. Both the
City and County agree that the redevelopment of the Foothills Mall is important to both the City of
Fort Collins and Larimer County because of the public benefits such a project will provide the
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151
May 8, 2013
citizens, including blight remediation, civic pride, premier regional shopping and entertainment
opportunities, and an increase in community investment.
Furthermore, the City and the URA recognize that residential development generally is expected to
have greater impact on County services than commercial development. Given that the Foothills
Mall redevelopment includes a substantial residential component, the City agrees to remit an
amount equal to 50% of the property tax increment generated from the residential portion of the
project in each year that those funds are available after payment of debt service requirements for
the District Bonds, subject to annual appropriation.
Additionally, the URA Executive Director will work with the City and the County to develop an
agreement through which the Authority will agree to remit to the County the portion of the property
tax increment received by the Authority from the Foothills Mall that represents the County’s share
of the personal property tax increment paid from the Foothills Mall. The County will be required
to provide an accounting reasonably satisfactory to the City and the Authority of both personal and
real property tax collected, at the County’s cost. The Resolution authorizes the President of the
URA Board to execute an intergovernmental agreement to carry out this commitment.
The potential fiscal impacts to the County resulting from the use of tax increment financing are
analyzed by a jointly developed fiscal impact model. A number of the assumptions within the fiscal
impact have come into question, and there is a desire for an impact analysis model that allows for
a more robust and holistic analysis. To this end, the City and the URA have agreed to work
cooperatively with the County and, to the extent practicable, with other municipalities in the County,
to develop an appropriate fiscal impact analysis model for evaluating financial impacts associated
with the formation of tax increment financing districts, the redevelopment of lands within the city,
and the annexation of property into the city that will support further discussions with the County
regarding these issues.
FINANCIAL / ECONOMIC IMPACTS
This proposal will result in less revenue available to the URA to pledge to the Foothills Mall
Redevelopment bond repayment.
STAFF RECOMMENDATION
Staff recommends adoption of the Resolution.”
Executive Director Atteberry noted Council received a revised version of this item in the read-before
packet.
Boardmember Poppaw made a motion, seconded by Boardmember Campana, to adopt Resolution
No. 056, as amended. Yeas: Poppaw, Campana, Overbeck, Troxell, Horak and Cunniff. Nays:
none.
THE MOTION CARRIED.
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May 8, 2013
Adjournment
The meeting adjourned at 2:29 a.m. Wednesday, May 8, 2013.
_________________________________
Chairperson
ATTEST:
_____________________________
Secretary
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May 14, 2013
Urban Renewal Authority
A meeting of the Fort Collins Urban Renewal Authority was held on Tuesday, May 14, 2013, at 7:16
p.m., in the Council Chambers of the City of Fort Collins City Hall. Roll Call was answered by the
following Boardmembers: Campana, Cunniff, Horak, Overbeck, Poppaw, Troxell, and Weitkunat.
Staff Members Present: Atteberry, Nelson, Roy.
Resolution No. 057, Appointing Committee Members to the Finance Committee, Adopted
The following is the staff memorandum for this item.
“EXECUTIVE SUMMARY
This committee of the Urban Renewal Authority (URA) Board would consist of the same members
that serve on the Council Finance Committee. Having a separate committee allows the URA
Finance Committee to discuss all matters related the URA, including receiving and discussing
privileged and confidential URA information.
BACKGROUND / DISCUSSION
The URA established the Finance Committee and appointed Karen Weitkunat, Kelly Ohlson and Ben
Manvel through Resolution No. 044 in October 2012. Kelly Ohlson and Ben Manvel have since
completed their terms as Councilmembers and can no longer serve as Commissioners for the
Finance Committee, creating a need for new appointments to the Finance Committee.
City Council Resolution 2013-039, adopted on May 7, 2013, appointed Karen Weitkunat, Bob
Overbeck, and Ross Cunniff as the members of the City Council Finance Committee. Since the URA
financial matters are often tied to City financial matters, this Resolution appoints the City Council
Finance Committee members as the URA Finance Committee members.”
Vice-Chair Horak made a motion, seconded by Boardmember Troxell, to adopt Resolution No. 057.
Yeas: Cunniff, Horak, Weitkunat, Campana, Poppaw, Overbeck and Troxell. Nays: none.
THE MOTION CARRIED.
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May 14, 2013
Adjournment
The meeting adjourned at 7:18 p.m.
_________________________________
Chair
ATTEST:
_____________________________
Secretary
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DATE: June 18, 2013
STAFF: John Voss
AGENDA ITEM SUMMARY
FORT COLLINS URBAN RENEWAL
AUTHORITY 9
SUBJECT
Resolution No. 058 of the Fort Collins Urban Renewal Authority Authorizing, Approving and Directing the Issuance,
Sale and Delivery by the Authority of Tax Increment Revenue Refunding Bonds (North College Avenue Project) Series
2013, in the Maximum Aggregate Principal Amount of $11,800,000; Approving Documents in Connection Therewith;
and Ratifying Prior Actions.
EXECUTIVE SUMMARY
Property tax revenue in the North College Plan Area has matured and is therefore attractive to outside investors. The
Resolution adopted by the City Council expresses the Council’s intent to replenish the URA’s debt service reserve fund
if such funds are ever used to make debt service payments. Replenishment of the reserve fund is contingent upon
annual appropriation of funds by the City Council in its sole discretion. The City Council's expression of intent improves
the credit rating on the 2013 Bonds. With the City Council Resolution, the 2013 Bonds are expected to have an
effective interest rate of 3.3%, which is slightly less than the weight average of the current loans, 3.44%.
BACKGROUND / DISCUSSION
The North College URA Project Area was created in 2004, allowing the URA to receive incremental property taxes
through 2029. Collection of property tax increment revenue in North College began in 2007, and the 2012 property
taxes payable in 2013 are expected to be $1.3 million.
Table 1 - Net Property Tax Increment Revenue $000’s
2007 2008 2009 2010 2011 2012 2013 *
$110 $287 $263 $493 $536 $907 $1,285
*anticipated
A common measure used by lenders in determining risk is the ratio of pledged revenue to debt service, called a
coverage ratio. Investors want that ratio to be high – at least 125%. The current revenue of $1.3 million could support
up to $1 million a year in debt service. The proposed maximum annual debt service of $919,000 yields a good
coverage ratio of 142%.
City Loans to URA
The initial financing model adopted for North College has the City providing initial capital through a loan until the tax
increment revenue reaches a maturity level that can support external financing to third party investors. Eight loans
have been made by the City to the URA in the North College District. The first loan has been repaid. Table 2 recaps
the current status of the loans.
Table 2 – North College Loan Status $000’s
Date Project
Original
Value
Current
Balance
Term
Years Rate
City Fund
Holding
09/2006 Valley Steel, URA start-up funds $ 150 $ 0 5 5.55% General Fund
05/2009 North College Market Place, Phase 1 5,000 4,729 20 2.85% Capital Expansion
12/2010 JAX 173 106 5 2.50% Capital Expansion
06/2011 NEECO 326 326 10 3.01% Storm Drainage
07/2011 Kaufman Robinson 193 193 5 2.46% General Fund
07/2011 North College Market Place, Phase 2 3,000 2,884 19 4.09% Water Fund
08/2012 North College Road Improvements 2,700 2,700 18 3.92% Capital Projects
BCC
Loans to be refinanced 11,542 10,938 3.44% Weighted average
06/09 RMI2 5,304 5,304 20 2.50% General Fund
Total North College Area 16,846 16,242
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June 18, 2013 -2- ITEM 9
The proposal is to issue enough debt to takeout $10.94 million in loans to the City, plus interest and debt issue costs.
For the following reasons, the City’s loan to the URA that relates to RMI is not being refinanced.
• The use of the RMI loan proceeds does not qualify the interest to be tax exempt. Therefore the interest rate
would be significantly higher.
• The new market tax credit deal cannot be refinanced until 2017.
• There is not enough revenue capacity to meet external investor expectations relating to coverage ratios. Only
about $1 million of the $5.3 million could be considered for refinancing if the favorable coverage ratio was to
be preserved.
Preliminary Structure of 2013 Bonds
Approximately $11.4 million of bond proceeds will be used to takeout $10.94 million of debt to the City, plus interest
of $254,000, and pay debt issue costs of $206,000. Coupon interest rates vary from 2% for near term bonds and 4%
for longer term bonds. The collective Net Interest Cost is expected to be 3.3%, which compares favorably to the
3.44% weighted average interest rate on the debt being retired. Future annual payments will vary from $914,000 to
$919,000 through 2029.
The Underwriters for the 2013 Bonds have recommended that a debt service reserve fund in the amount of $920,000
would be advisable for marketing the 2013 Bonds and that purchasing a Surety Policy for such an amount would be
preferable to funding such a reserve with cash. The cost of such a Surety Policy would be $55,000. If it was ever
necessary to draw upon the Surety Policy, the City’s replenishment pledge would repay such draw, subject to annual
appropriation.
Staff prefers this option but will make a decision later based on the potential impact on the credit rating.
City Council Resolution
It is anticipated that the City Council’s expression of intent to replenish the bond reserve fund will result in a credit
rating of Aa3. Without this, and a proven revenue stream, the interest rate would likely be 5% or higher rather than
3.3%.
Future Financing Model
City staff have communicated to the URA that going forward the City intends to only loan money when alternative
financing agreements are not feasible. The reimbursement agreement recently approved for Aspen Heights is an
example of the preferred approach for future development agreements. The Aspen Heights developer will be
reimbursed over time as revenue is collected, rather than in a lump sum upon completion of the project.
Timeline
June 24 Publish Preliminary Official Statement on Internet Sites
July 9-10 Market Bonds
July 23 Closing
Consultants – The URA and City have engaged three firms to help issue the new debt: Sherman & Howard as the
Bond Attorney, BLX as the Financial Advisor and RBC Capital Markets as the Bond Underwriters.
FINANCIAL / ECONOMIC IMPACTS
The replacement debt will take out $10.94 million in debt to the City, pay $254,000 of interest and pay $206, 000 in
delivery date expenses. It should be noted that later this summer the City will use some of the returned monies to loan
$5 million to the URA for the first Midtown Project – The Summit (Capstone).
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June 18, 2013 -3- ITEM 9
Table 3 -Before Refinancing 000s
2012 2013 2014 2015 2016
Cash In-flows
Property Tax Increment $ 907 $ 1,285 $ 1,310 $ 1,310 $ 1,337
Other Inflows 109 97 95 92 97
Loan Proceeds 2,700
Total Inflows 3,716 1,382 1,405 1,402 1,433
Cash Out-flows
Operating Costs (132) (235) (263) (268) (272)
Project Costs (3,718) (212)
Subordinate Debt Service (645) (804) (1,539) (1,008) (1,162)
Total Outflows (4,496) (1,251) (1,802) (1,276) (1,434)
Net Cash Flow (780) 130 (397) 126 (0)
Beginning Cash 2,531 1,751 1,881 1,485 1,611
Ending Cash 1,751 1,881 1,485 1,611 1,611
Table 4 - After Refinancing 000s
2012 2013 2014 2015 2016
Cash In-flows
Property Tax Increment $ 907 $ 1,285 $ 1,310 $ 1,310 $ 1,337
Other Inflows 109 97 100 97 103
Loan Proceeds 2,700
Refinancing Proceeds 11,398
Total Inflows 3,716 12,780 1,410 1,407 1,439
Cash Out-flows
Operating Costs (132) (235) (263) (268) (272)
Project Costs (3,718) (212)
Debt Service 2013 Bonds (132) (917) (917) (915)
Subordinate Debt Service (645) (663) (133) (133)
Bond Issue Costs (206)
Takeout loans plus interest (11,192)
Total Outflows (4,496) (11,978) (1,844) (1,317) (1,319)
Net Cash Flow (780) 802 (434) 90 120
Beginning Cash 2,531 1,751 2,553 2,120 2,210
Ending Cash 1,751 2,553 2,120 2,210 2,330
Table 5 - Net Change 000s
2012 2013 2014 2015 2016
$ 0 $ 672 $ 635 $ 599 $ 719
STAFF RECOMMENDATION
Staff recommends adoption of the Resolution.
BOARD / COMMISSION RECOMMENDATION
The URA Board Finance Committee reviewed and tentatively approved the refinancing and the concept of a Council
Resolution regarding debt reserve replenishment at its meeting 158 on May 20, 2013.
June 18, 2013 -4- ITEM 9
ATTACHMENTS
1. Board Finance Committee minutes, May 20, 2013.
2. Preliminary debt structure, prepared by RBC Capital Markets
3. Powerpoint presentation
159
Finance Administration
215 N. Mason
2nd Floor
PO Box 580
Fort Collins, CO 80522
970.221.6788
970.221.6782 - fax
fcgov.com
URA Finance Committee Meeting
Draft of Minutes
5/20/13
11:00 to Noon
CIC Room
Council Attendees: Mayor Karen Weitkunat, Ross Cunniff, Bob Overbeck
Staff: Darin Atteberry, Mike Beckstead, Chris Donegon,
Harold Hall, John Voss, Katie Wiggett
Others: Jim Manire, Joel Stewart
Approval of the Minutes of March 18, 2013
Ross Cunniff moved to approve the minutes for the December 17, 2013 meeting. Bob Overbeck
seconded the motion. Minutes were approved unanimously.
Election of Officers
Ross Cunniff nominated Mayor Karen Weitkunat as chair of the URA Committee. Bob Overbeck
seconded the nomination.
URA North College Refinance
John Voss presented the URA’s plan to refinance approximately $11.2 million of the debt it originally
borrowed from the City in relation to the North College area. Because an established revenue stream
can be shown to investors, private money can be used to replace City money. The 2013 bonds require
the URA to establish a debt reserve fund. To better enhance the credit rating on the replacement debt,
the City must pledge to replenish the URA’s debt reserve fund if the URA ever uses the funds to make
debt payments. With the City’s pledge, the new URA debt is expected to have an effective interest rate
of 2.98% and a credit rating of Aa3. Without the City’s pledge, the interest rate would likely be 5% or
higher. The refinancing of this debt will improve the cash flows of the URA and is expected to save
$922,000 through 2029.
City staff have communicated to the URA that going forward the City intends to only loan money when
alternative financing agreements are not feasible. The reimbursement agreement recently approved for
Aspen Heights is an example of the preferred approach for future development agreements.
The City’s pledge includes a commitment to maintain an unrestricted fund balance in the General Fund
in an amount at least equal to the Reserve Fund Requirement, estimated at $961,000. The General
Fund can easily meet that requirement: at the end of 2012, the collective unrestricted fund balances in
the General Fund totaled $37 million. Property tax revenue in the North College URA plan area is
unlikely to decline enough to trigger the use of the Debt Service Reserve Fund.
ATTACHMENT 1
160
2
Ross Cunniff asked how this restriction in the General Fund would be noted if a special reserve fund
were not created. John Voss said that there will be a note within the general fund, setting aside the
reserve fund money. A future CFC topic on Fund Balance will explain this further.
Council Finance Committee reviewed and tentatively approved the refinancing and the concept of a
debt reserve replenishment pledge at their meeting on December 17, 2012. Staff recommends that this
topic be brought to council on June 4 because it is a time sensitive issue.
Projected Timeline –
May 16 Send rating documents to Moody’s
May 29 Receive credit rating from Moody’s
June 4 City Council and URA Board approve refinancing actions
June 6 Publish Preliminary Official Statement on internet sites
June 18‐19 Market Bonds
July 9 Closing
Council Direction / Next Steps
The Council Finance supports the URA Refinance and recommends that it be brought to Council on
June 4.
161
May 31, 2013 9:19 am Prepared by RBC Capital Markets
TABLE OF CONTENTS
Fort Collins Urban Renewal Authority
Tax Increment Revenue Refunding Bonds, Series 2013
(North College Avenue Project)
'Aa3' Est Rating | Callable 12/1/23 @ 100 | 5/31/13 Mkt Rates
**Preliminary Numbers - Subject to Change**
Report Page
Sources and Uses of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Bond Pricing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Bond Summary Statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Bond Debt Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Bond Solution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
ATTACHMENT 2
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May 31, 2013 9:19 am Prepared by RBC Capital Markets Page 1
SOURCES AND USES OF FUNDS
Fort Collins Urban Renewal Authority
Tax Increment Revenue Refunding Bonds, Series 2013
(North College Avenue Project)
'Aa3' Est Rating | Callable 12/1/23 @ 100 | 5/31/13 Mkt Rates
**Preliminary Numbers - Subject to Change**
Dated Date 07/23/2013
Delivery Date 07/23/2013
Sources:
Bond Proceeds:
Par Amount 10,995,000.00
Net Premium 403,271.50
11,398,271.50
Uses:
Project Fund Deposits:
Proceeds to Takeout Loans - Principal 10,938,089.54
Proceeds to Takeout Loans - Interest 254,057.40
11,192,146.94
Delivery Date Expenses:
Cost of Issuance 101,513.06
Underwriter's Discount 49,477.50
Surety @ 6% (AGM Est) 55,134.00
206,124.56
11,398,271.50
163
May 31, 2013 9:19 am Prepared by RBC Capital Markets Page 2
BOND PRICING
Fort Collins Urban Renewal Authority
Tax Increment Revenue Refunding Bonds, Series 2013
(North College Avenue Project)
'Aa3' Est Rating | Callable 12/1/23 @ 100 | 5/31/13 Mkt Rates
**Preliminary Numbers - Subject to Change**
Maturity Yield to Premium
Bond Component Date Amount Rate Yield Price Maturity (-Discount)
Serial bonds:
12/01/2014 545,000 2.000% 0.760% 101.668 9,090.60
12/01/2015 555,000 3.000% 0.950% 104.763 26,434.65
12/01/2016 570,000 3.000% 1.260% 105.698 32,478.60
12/01/2017 590,000 3.000% 1.590% 105.909 34,863.10
12/01/2018 605,000 3.000% 1.930% 105.417 32,772.85
12/01/2019 625,000 3.000% 2.320% 103.995 24,968.75
12/01/2020 645,000 3.000% 2.550% 102.998 19,337.10
12/01/2021 665,000 3.000% 2.780% 101.628 10,826.20
12/01/2022 685,000 3.000% 3.000% 100.000
12/01/2023 705,000 3.000% 3.130% 98.855 -8,072.25
12/01/2024 725,000 4.000% 3.240% 106.637 C 3.294% 48,118.25
12/01/2025 755,000 4.000% 3.340% 105.734 C 3.427% 43,291.70
12/01/2026 785,000 4.000% 3.440% 104.840 C 3.542% 37,994.00
12/01/2027 815,000 4.000% 3.510% 104.220 C 3.620% 34,393.00
12/01/2028 845,000 4.000% 3.580% 103.603 C 3.690% 30,445.35
12/01/2029 880,000 4.000% 3.650% 102.992 C 3.753% 26,329.60
10,995,000 403,271.50
Dated Date 07/23/2013
Delivery Date 07/23/2013
First Coupon 12/01/2013
Par Amount 10,995,000.00
Premium 403,271.50
Production 11,398,271.50 103.667772%
Underwriter's Discount -49,477.50 -0.450000%
Purchase Price 11,348,794.00 103.217772%
Accrued Interest
Net Proceeds 11,348,794.00
164
May 31, 2013 9:19 am Prepared by RBC Capital Markets Page 3
BOND SUMMARY STATISTICS
Fort Collins Urban Renewal Authority
Tax Increment Revenue Refunding Bonds, Series 2013
(North College Avenue Project)
'Aa3' Est Rating | Callable 12/1/23 @ 100 | 5/31/13 Mkt Rates
**Preliminary Numbers - Subject to Change**
Dated Date 07/23/2013
Delivery Date 07/23/2013
Last Maturity 12/01/2029
Arbitrage Yield 3.089727%
True Interest Cost (TIC) 3.263604%
Net Interest Cost (NIC) 3.295575%
All-In TIC 3.378388%
Average Coupon 3.632958%
Average Life (years) 9.537
Duration of Issue (years) 8.009
Par Amount 10,995,000.00
Bond Proceeds 11,398,271.50
Total Interest 3,809,676.67
Net Interest 3,455,882.67
Total Debt Service 14,804,676.67
Maximum Annual Debt Service 918,900.00
Average Annual Debt Service 905,177.24
Par Average Average PV of 1 bp
Bond Component Value Price Coupon Life change
Serial bonds 10,995,000.00 103.668 3.633% 9.537 7,719.30
10,995,000.00 9.537 7,719.30
All-In Arbitrage
TIC TIC Yield
Par Value 10,995,000.00 10,995,000.00 10,995,000.00
+ Accrued Interest
+ Premium (Discount) 403,271.50 403,271.50 403,271.50
- Underwriter's Discount -49,477.50 -49,477.50
- Cost of Issuance Expense -101,513.06
- Other Amounts -55,134.00 -55,134.00 -55,134.00
Target Value 11,293,660.00 11,192,146.94 11,343,137.50
Target Date 07/23/2013 07/23/2013 07/23/2013
Yield 3.263604% 3.378388% 3.089727%
165
May 31, 2013 9:19 am Prepared by RBC Capital Markets Page 4
BOND DEBT SERVICE
Fort Collins Urban Renewal Authority
Tax Increment Revenue Refunding Bonds, Series 2013
(North College Avenue Project)
'Aa3' Est Rating | Callable 12/1/23 @ 100 | 5/31/13 Mkt Rates
**Preliminary Numbers - Subject to Change**
Period
Ending Principal Coupon Interest Debt Service
12/01/2013 132,426.67 132,426.67
12/01/2014 545,000 2.000% 372,450.00 917,450.00
12/01/2015 555,000 3.000% 361,550.00 916,550.00
12/01/2016 570,000 3.000% 344,900.00 914,900.00
12/01/2017 590,000 3.000% 327,800.00 917,800.00
12/01/2018 605,000 3.000% 310,100.00 915,100.00
12/01/2019 625,000 3.000% 291,950.00 916,950.00
12/01/2020 645,000 3.000% 273,200.00 918,200.00
12/01/2021 665,000 3.000% 253,850.00 918,850.00
12/01/2022 685,000 3.000% 233,900.00 918,900.00
12/01/2023 705,000 3.000% 213,350.00 918,350.00
12/01/2024 725,000 4.000% 192,200.00 917,200.00
12/01/2025 755,000 4.000% 163,200.00 918,200.00
12/01/2026 785,000 4.000% 133,000.00 918,000.00
12/01/2027 815,000 4.000% 101,600.00 916,600.00
12/01/2028 845,000 4.000% 69,000.00 914,000.00
12/01/2029 880,000 4.000% 35,200.00 915,200.00
10,995,000 3,809,676.67 14,804,676.67
166
May 31, 2013 9:19 am Prepared by RBC Capital Markets Page 5
BOND SOLUTION
Fort Collins Urban Renewal Authority
Tax Increment Revenue Refunding Bonds, Series 2013
(North College Avenue Project)
'Aa3' Est Rating | Callable 12/1/23 @ 100 | 5/31/13 Mkt Rates
**Preliminary Numbers - Subject to Change**
Period Proposed Proposed Total Adj Revenue Unused Debt Serv
Ending Principal Debt Service Debt Service Constraints Revenues Coverage
12/01/2013 132,427 132,427 1,300,000 1,167,573 981.67537%
12/01/2014 545,000 917,450 917,450 1,300,000 382,550 141.69710%
12/01/2015 555,000 916,550 916,550 1,300,000 383,450 141.83623%
12/01/2016 570,000 914,900 914,900 1,300,000 385,100 142.09203%
12/01/2017 590,000 917,800 917,800 1,300,000 382,200 141.64306%
12/01/2018 605,000 915,100 915,100 1,300,000 384,900 142.06098%
12/01/2019 625,000 916,950 916,950 1,300,000 383,050 141.77436%
12/01/2020 645,000 918,200 918,200 1,300,000 381,800 141.58135%
12/01/2021 665,000 918,850 918,850 1,300,000 381,150 141.48120%
12/01/2022 685,000 918,900 918,900 1,300,000 381,100 141.47350%
12/01/2023 705,000 918,350 918,350 1,300,000 381,650 141.55823%
12/01/2024 725,000 917,200 917,200 1,300,000 382,800 141.73572%
12/01/2025 755,000 918,200 918,200 1,300,000 381,800 141.58135%
12/01/2026 785,000 918,000 918,000 1,300,000 382,000 141.61220%
12/01/2027 815,000 916,600 916,600 1,300,000 383,400 141.82850%
12/01/2028 845,000 914,000 914,000 1,300,000 386,000 142.23195%
12/01/2029 880,000 915,200 915,200 1,300,000 384,800 142.04545%
10,995,000 14,804,677 14,804,677 22,100,000 7,295,323
167
1
1
Refinancing North College Debt
Urban Renewal Authority
June 18, 2013
2
Overview
• URA has borrowed money from the City
• Loans were intended to bridge gap until revenue
stream established
• Looking to refinance some of these loans with
external investors
• Refinance about $10.9 million
ATTACHMENT 3
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2
3
Financing Model for URA Projects
• Initial financing model
– City provides capital upfront
– Until revenue stream is proven
– Replace with external financing
• Future financing will be similar to Aspen Heights
– No lump sum at completion of project
– Share percent of revenue as collected
– Consider exceptions for special circumstances
4
City Loans to URA for N. College
Date Project
Orig.
Value
Current
Balance
Term
Years Rate City Fund Holding
09/06 V. Steel, URA start-up funds $ 150 $ 0 5 5.55% General Fund
05/09 N.C. Market Place, phase 1 5,000 4,729 20 2.85% Capital Expansion
12/10 JAX 173 106 5 2.50% Capital Expansion
06/11 NEECO 326 326 10 3.01% Storm Drainage
07/11 Kaufman Robinson 193 193 5 2.46% General Fund
07/11 N.C. Market Place, phase 2 3,000 2,884 19 4.09% Water Fund
08/12 N.C. Road Improvements 2,700 2,700 18 3.92% Capital Projects
BCC
Loans to be refinanced 11,542 10,938 3.44% Weighted average
06/09 RMI2 5,304 5,304 20 2.50% General Fund
Total North College Area 16,846 16,242
$000’s
169
3
5
North College TIF District
• Created in 2004, expires in 2029
• Increment on property taxes, none on sales tax
• Property tax increment revenue started flowing in 2007
• Revenue is now mature and stable, more attractive to
investors
* anticipated
2007 2008 2009 2010 2011 2012 2013 *
$110 $287 $263 $493 $536 $907 $1,285
Tax Increment Revenue $000s
6
Credit Enhanced by City Pledge
• City pledges to replenish the URA’s debt service
reserve fund, if it were to used to make debt payments
– Non-binding; pledge is to consider replenishing
– However, not honoring the pledge would significantly impact
the City’s credit rating and ability to borrow money in future
• Reduces interest rate from well over 5% to 3.3%
170
4
7
2013 Bonds (preliminary)
• 3.3% Interest Rate
• 16 year term
• North College TIF District forecasted to end with
similar cash balance at end of 2029
8
Money Returned to City
• Repay $10.9 million to the City
• City can recycle a portion of returned money into
another loan to URA for a Prospect South project
– The Summit (Capstone)
– $5 million loan authorized by City and URA in
September 2011
– Staff to execute loan later this summer
171
5
9
Next Steps
• June 24 Publish Preliminary Official Statement
• July 9-10 Market the bonds
• July 23 Closing
172
A-1
RESOLUTION NO. 058
OF THE BOARD OF COMMISSIONERS OF THE FORT
COLLINS URBAN RENEWAL AUTHORITY AUTHORIZING,
APPROVING AND DIRECTING THE ISSUANCE, SALE AND
DELIVERY BY THE AUTHORITY OF TAX INCREMENT
REVENUE REFUNDING BONDS (NORTH COLLEGE
AVENUE PROJECT) SERIES 2013, IN THE MAXIMUM
AGGREGATE PRINCIPAL AMOUNT OF $11,800,000;
APPROVING DOCUMENTS IN CONNECTION THEREWITH;
AND RATIFYING PRIOR ACTIONS.
WHEREAS, the Fort Collins Urban Renewal Authority (the “Authority”) is a
public body corporate and politic, and has been duly created, organized, established and
authorized by the City of Fort Collins, Colorado (the “City”) to transact business and exercise its
powers as an urban renewal authority, all under and pursuant to the Colorado Urban Renewal
Law, constituting part 1 of article 25 of title 31, Colorado Revised Statutes, as amended (the
“Act”); and
WHEREAS, the City Council of the City by Resolution No. 2004-152 approved
and adopted on December 21, 2004 has authorized and approved the “North College Urban
Renewal Plan” as an urban renewal plan under the Act (the “Plan”) for the area described therein
“Plan Area”); and
WHEREAS, all applicable requirements of the Act and other provisions of law
for and precedent to the adoption and approval by the City of the Plan have been duly complied
with; and
WHEREAS, pursuant to Section 31-25-109 of the Act, the Authority has the
power and authority to issue bonds to finance the activities or operations of the Authority
permitted and authorized under the Act and also has the power to issue refunding bonds; and
WHEREAS, the Authority is authorized to issue bonds without an election; and
WHEREAS, in order to undertake certain urban renewal projects within the Plan
Area, the Authority has previously borrowed money from the City and entered into certain prior
Loan Agreements with the City and executed certain prior Promissory Notes in connection
therewith; and
WHEREAS, the Board of Commissioners of the Authority (the “Board”) has
determined that it is advantageous and in the best interests of the Authority to prepay in whole all
of the outstanding Prior Promissory Notes (as defined in the Indenture, hereinafter defined)
together with the accrued interest thereon (such prepayment of the Prior Promissory Notes
hereinafter referred to as the “Refunding Project”); and
WHEREAS, the Board has determined and hereby determines that it is in the best
interests of the Authority and the citizens of the City that the Authority now issue its “Fort
Collins Urban Renewal Authority, Tax Increment Revenue Refunding Bonds (North College
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2
Avenue Project), Series 2013” in the maximum aggregate principal amount of $11,800,000 (the
“Bonds”) in order to finance the Refunding Project, pursuant to and in accordance with the Plan
and the Act; and
WHEREAS, the Bonds will be issued under and pursuant to the Indenture of
Trust dated as of the date of delivery of the Bonds (the “Indenture”) between the Authority and
U.S. Bank National Association, as trustee (the “Trustee”); and
WHEREAS, the Bonds shall be sold and delivered by the Authority to RBC
Capital Markets, LLC (the “Underwriter”) pursuant to the provisions of a Bond Purchase
Agreement (the “Bond Purchase Agreement”) between the Authority and the Underwriter; and
WHEREAS, in connection with the issuance of the Bonds, it is necessary and in
the best interests of the Authority to enter into a Cooperation Agreement (the “Cooperation
Agreement”) between the Authority and the City; and
WHEREAS, the Authority desires to enter into a Continuing Disclosure
Certificate (the “Continuing Disclosure Certificate”) relating to the Bonds; and
WHEREAS, Section 11-57-204 of the Supplemental Public Securities Act,
constituting Title 11, Article 57, Part 2, Colorado Revised Statutes (the “Supplemental Act”),
provides that a public entity, including the Authority, may elect in an act of issuance to apply all
or any of the provisions of the Supplemental Act; and
WHEREAS, there are on file with the City Clerk as the Secretary of the Board
(the “Secretary”): (a) the proposed form of the Indenture; (b) the proposed form of the Bond
Purchase Agreement; (c) the proposed form of the Preliminary Official Statement (the
“Preliminary Official Statement”) prepared for distribution to the purchasers of the Bonds; (d)
the proposed form of the Cooperation Agreement; and (e) the proposed form of the Continuing
Disclosure Certificate; and
WHEREAS, all acts, conditions and things required by law to exist, happen and
be performed precedent to and in connection with the authorization of the Bonds exist, have
happened and have been performed in regular and due time, form and manner as required by law,
it is appropriate for the Board to adopt this Resolution at this time.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF
COMMISSIONERS OF THE FORT COLLINS URBAN RENEWAL AUTHORITY,
COLORADO, THAT:
Section 1. All actions (not inconsistent with the provisions of this Resolution)
heretofore taken by the Board and the employees, agents, officials and officers of the Authority
directed toward financing and implementing the Refunding Project, and the issuance and sale of
the Bonds are hereby ratified, approved and confirmed.
Section 2. The Board hereby finds and determines, pursuant to the laws of the
State and the Act, that adopting this Resolution, issuing the Bonds, executing the documents
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3
related thereto, and implementing the Refunding Project is necessary, advantageous and in the
best interests of the Authority and the citizens of the City.
Section 3. To provide funds to defray the cost of the Refunding Project and to
pay the costs of issuance incurred in connection therewith, there is hereby authorized and created
an issue of revenue bonds of the Authority designated as its “Tax Increment Revenue Refunding
Bonds (North College Avenue Project), Series 2013” in the maximum aggregate original
principal amount of $11,800,000, in accordance with the provisions of the Indenture and the Sale
Certificate (hereinafter defined). The Bonds shall be dated, shall bear interest, shall be subject to
redemption prior to maturity and shall mature as provided in the Indenture, and as set forth in the
Sale Certificate.
Section 4. The Board hereby exercises the option of the Authority to prepay
all the outstanding Prior Promissory Notes (as defined in the Indenture) on the date of issuance
of the Bonds, at a price equal to the respective principal amounts outstanding plus accrued
interest thereon to the prepayment date, without premium.
Section 5. The Board hereby elects to apply all of the Supplemental Act to the
Bonds and in connection therewith delegates to each of the Chairperson of the Board (the
“Chairperson”) and the Executive Director of the Authority (the “Executive Director”) the
independent authority to make any determination delegable pursuant to Section 11-57-205(1)(a-
i), Colorado Revised Statutes, to accept and sign the Bond Purchase Agreement, to make
determinations in relation to the Bonds, and to execute a sale certificate (the “Sale Certificate”)
setting forth such determinations, without any requirement that the Board approve such
determinations, subject to the following parameters and restrictions: (a) the aggregate principal
amount of the Bonds shall not exceed $11,800,000; (b) the Bonds shall mature no later than
December 1, 2029; (c) the purchase price of the Bonds shall not be less than 98% of the original
principal amount on the Bonds; and (d) the maximum net effective interest rate on the Bonds
shall not exceed 3.95%.
The Chairperson and the Executive Director are hereby independently authorized
to determine whether a reserve fund insurance policy will be obtained for deposit into the
Reserve Fund, and if so, to select a surety provider to issue a reserve fund insurance policy for all
or any portion of the Reserve Fund Requirement related to the Bonds and execute any related
documents or agreements required by such commitment.
The delegation set forth in this Section 4 shall be effective for one year following
the date hereof.
Section 6. The forms, terms and provisions of the Indenture, the Bond
Purchase Agreement, the Cooperation Agreement and the Continuing Disclosure Certificate
(collectively, the “Documents”) are hereby authorized and approved, and the Authority shall
enter into the Documents in substantially the forms on file with the Secretary, but such
Documents may be completed, corrected or revised as deemed necessary by the parties thereto in
order to carry out the purposes of this Resolution and as the Executive Director shall approve,
the execution thereof being deemed conclusive approval of any such changes by the Authority.
The Chairperson and the Executive Director are each hereby authorized and directed to execute
175
4
and deliver the Indenture, the Cooperation Agreement and the Continuing Disclosure Certificate
for and on behalf of the Authority. The Secretary is hereby authorized and directed to affix the
seal of the Authority to, and to attest those Documents requiring the attestation of the Secretary.
The Bond Purchase Agreement shall be executed by either the Chairperson or the Executive
Director as authorized pursuant to Section 5 hereof.
Section 7. A final Official Statement, in substantially the form of the
Preliminary Official Statement on file with the Secretary, is in all respects approved and
authorized. The Chairperson is hereby authorized and directed, for and on behalf of the
Authority, to execute and deliver the final Official Statement in substantially the form and with
substantially the same content as the Preliminary Official Statement on file with the Secretary,
with such changes as may be approved by the Chairperson or the Executive Director. The
distribution of the Preliminary Official Statement and the final Official Statement to all
interested persons in connection with the sale of the Bonds is hereby ratified, approved and
authorized.
Section 8. The form, terms and provisions of the Bonds, in the form
contained in the Indenture and upon the terms to be set forth in the Sale Certificate, are hereby
approved, with such changes therein as are approved by the Chairperson or the Executive
Director; and the manual or facsimile signature of the Chairperson is hereby authorized and
directed to be placed on the Bonds, the seal of the Authority, or a facsimile thereof, is hereby
authorized and directed to be affixed to the Bonds, and the Executive Director is hereby
authorized and directed to attest the Bonds, in accordance with the Indenture.
Section 9. The officers of the Authority are hereby authorized and directed to
execute and deliver for and on behalf of the Authority any and all additional certificates,
documents and other papers, and to perform all other acts that they may deem necessary or
appropriate in order to implement and carry out the transactions and other matters authorized by
this Resolution. The execution of any document or instrument by the aforementioned officials or
employees of the Authority shall be conclusive evidence of the approval by the Authority of such
document or instrument in accordance with the terms hereof and thereof.
Section 10. The Bonds, together with interest payable thereon, are special and
limited obligations of the Authority payable solely as provided in the Indenture. The principal
of, premium, if any, and interest on the Bonds shall not constitute an indebtedness of the City or
the State of Colorado or any political subdivision thereof, and neither the City, the State of
Colorado nor any political subdivision thereof shall be liable thereon, nor in any event shall the
principal of, premium, if any, and interest on the Bonds be payable out of funds or properties
other than the Trust Estate, as such term is defined in the Indenture. Neither the Commissioners
of the Authority nor any persons executing the Bonds shall be liable personally on the Bonds.
Section 11. Pursuant to Section 11-57-209 of the Supplemental Act, if a
member of the Board, or any officer or agent of the Authority acts in good faith, no civil recourse
shall be available against such member, officer, or agent for payment of the principal, interest or
prior redemption premiums on the Bonds. Such recourse shall not be available either directly or
indirectly through the Board or the Authority, or otherwise, whether by virtue of any
constitution, statute, rule of law, enforcement of penalty, or otherwise. By the acceptance of the
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PUBFIN/1640567.4 5
Bonds and as a part of the consideration of their sale or purchase, any person purchasing or
selling such Bonds specifically waives any such recourse.
Section 12. After the Bonds are issued, this Resolution shall be and remain
irrepealable, and may not be amended except in accordance with the Indenture, until the Bonds
and the interest thereon shall have been fully paid, canceled and discharged in accordance with
the Indenture.
Section 13. If any section, paragraph, clause or provision of this Resolution
shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of
such section, paragraph, clause or provision shall not affect any of the remaining provisions of
this Resolution.
Section 14. All bylaws, orders and resolutions, or parts thereof, inconsistent
herewith are hereby repealed to the extent only of such inconsistency. This repealer shall not be
construed as reviving any bylaw, order or resolution or part thereof.
Section 15. This Resolution shall be in full force and effect immediately upon
its passage and approval.
Passed and adopted at a regular meeting of the Board of Commissioners of the
City of Fort Collins Urban Renewal Authority this 18th day of June, A.D. 2013.
________________________________________
Chairperson
ATTEST:
________________________________
Secretary
177
DATE: June 18, 2013
STAFF: Tom Leeson, Megan Bolin
Josh Birks
AGENDA ITEM SUMMARY
FORT COLLINS URBAN RENEWAL
AUTHORITY 10
SUBJECT
Resolution No. 059 of the Fort Collins Urban Renewal Authority Adopting the Storefront Improvement Program for the
North College Urban Renewal Area and Authorizing the Executive Director to Enter Into Project Reimbursement
Agreements.
EXECUTIVE SUMMARY
This Resolution is a formal approval of the Storefront Improvement Program for the North College Urban Renewal
Area. The purpose of the Program is to encourage the voluntary rehabilitation of commercial buildings, improvements
and conditions within the North College Urban Renewal Area by offering financial assistance (50% of the total project
cost, up to a maximum URA contribution of $5,000 per storefront) to property owners and/or business tenants seeking
to renovate or restore their commercial storefronts and/or building facades.
BACKGROUND / DISCUSSION
The 2013-2014 biennial budget for Fort Collins approved funding for the Storefront Improvement Program (Program),
which included the following description:
“The purpose of the program is to provide financial assistance to property owners and/or business
tenants within an Urban Renewal TIF District seeking to renovate or restore their commercial
storefronts and/or building facades. The goal is to leverage private investment to visually improve
existing buildings.”
The purpose of the Resolution is to formally approve the Program, which will allow individual funding requests to be
approved administratively. As the budget language indicates, the purpose of the Program is to encourage the voluntary
rehabilitation of commercial buildings, improvements and conditions within the North College Urban Renewal Area
by offering financial assistance to property owners and/or business tenants seeking to renovate or restore their
commercial storefronts and/or building facades (See Attachment A for a complete description of the Program).
Approved participants of the Program are eligible to receive financial assistance, upon the completion their approved
project. The assistance is for 50% of the total project cost, up to a maximum URA contribution of $5,000 per storefront.
While the URA monies act as financial assistance to property owners and/or business tenants, the fundamental
purpose of the assistance is to further the goals and objectives identified in the North College Urban Renewal Plan
and the City’s Comprehensive Plan.
Eligible participants in the Program include property owners of commercial buildings and tenants of ground floor
commercial buildings that have an active sales tax license located within the North College Urban Renewal Area. A
grant from this Program may not be used in combination with tax increment financing assistance. The eligible
improvements include improvements that contribute to the visual enhancement of the property as viewed from the
public right-of-way. Property owners that participate in the Program will be required to record a façade easement with
the Larimer County Clerk and Recorder that will expire within five years of the date of project completion. The
easement requires the owner to maintain the facade, get URA approval of subsequent changes, and it gives the URA
the ability to make repairs and lien the property if the facade is not maintained (See Attachment 1 for the easement
template).
It is anticipated the URA will have two funding request deadlines per year. Significant outreach to North College
property and business owners will be made in an effort to gain interest in the program. Due to the limited time
remaining in 2013, only one funding request deadline will be offered.
178
June 18, 2013 -2- ITEM 10
FINANCIAL / ECONOMIC IMPACTS
The 2013-2014 biennial budget for Fort Collins approved funding in the amount of $25,000 in 2013 and $50,000 in
2014 of tax increment financing (TIF) generated from the North College Urban Renewal Area to fund a Storefront
Improvement Program.
ENVIRONMENTAL IMPACTS
It is not anticipated the Program will have any environmental impacts.
STAFF RECOMMENDATION
Staff recommends adoption of the Resolution.
PUBLIC OUTREACH
URA staff has worked directly with the North Fort Collins Citizen’s Advisory Group (CAG) in developing this program.
ATTACHMENTS
1. Grant of Easement for Facades
2. Powerpoint presentation
179
GRANT OF EASEMENT FOR FACADES
___________ ("Grantor") is the owner of the following described real property located
in the City of Fort Collins, County of Larimer, State of Colorado:
(hereinafter referred to as the "Property"). The street address of the Property is ____________,
Fort Collins, Colorado _________; and
Grantor does hereby grant and convey, in accordance with the following terms and
conditions, to The Fort Collins, Urban Renewal Authority, a body corporate and politic (the
"URA''), an easement over and across that portion of the Property constituting the west facade
of the Property, for the purpose of entering on, over and across the Property to preserve and
maintain the Facade Improvements, as hereinafter defined, in accordance with the terms of
this Grant of Easement for Facades ("Façade Easement").
1. TERM
The term of this Facade Easement shall be for a period of five (5) years, commencing upon
execution of the same (the "Term").
2. COVENANT
The provisions of this Facade Easement shall apply to the Property and shall be binding upon
the Grantor and all future owners and lessees of the Property during the Term. Upon expiration
of the Term, this Facade Easement shall terminate and no longer affect title to the Property.
This Facade Easement shall be recorded with the Clerk and Recorder of Larimer County,
Colorado.
3. FACADEIMPROVEMENTS
The Facade Improvements shall consist of the XXX facade of the Property including all
structural support materials, exterior walls, facia, soffits, doors, windows, and, specifically, all
signage and canopies for the Grantor or tenants of the Property consistent with the façade
plans and designs attached hereto and incorporated herein as Exhibit "A" (the "Facade
Improvements").
4. MAINTENANCE
Grantor shall be obligated to maintain and repair the Facade Improvements, including
replacement of all or a part thereof if necessary, in a manner which will preserve the Facade
Improvements in substantially the same condition as that existing at the time of the
completion of the Facade Improvements. The Grantor shall further be obligated to maintain
ATTACHMENT 1
180
and repair the Property to the extent required to provide structural support for the Facade
Improvements. The URA shall have no maintenance obligation whatsoever for the Facade
Improvements or the Property and shall not be liable in any manner for any costs associated
with the Facade Improvements or the Property.
In the event that Grantor, or its successors and assigns, shall fail to maintain and repair the
Facade Improvements (or the Property to provide support for the Façade Improvements) as
required herein, the URA shall give written notice to Grantor or its successors and assigns,
requiring Grantor to commence the requested maintenance and repair within ten (10) days of
receipt of such notice and to diligently complete such maintenance and repair within a
reasonable amount of time thereafter as specified in such notice. If such work is not
commenced or is not completed as required by such notice, the URA may, in its sole discretion,
cause such work to be completed and may thereafter assess the entire cost of such work
against Grantor or its successors and assigns. The URA shall have a lien on the Property to
secure any amount owed to it for repair and maintenance performed by it on account of the
failure to maintain and repair the Façade Improvements or the Property as required herein,
together with attorneys' fees and costs incurred by the URA in connection with such repair and
maintenance and the lien proceedings, and such lien may be foreclosed as provided by law for
the foreclosure of real estate mortgages.
5. RESTRICTIVE COVENANT AGAINST ALTERATIONS
No alteration of the Facade Improvements including, without limitation, alterations of or
additions to the signage or canopies approved by the URA and shown on Exhibit "A", shall be
made without the express written approval of the URA, which approval shall not be
unreasonably withheld. The URA, in considering such requests, shall take into account the
reasons for such request and whether the requested alteration is consistent with the character
of the approved design for the Façade Improvements or otherwise is compatible with the
character of the area in which the Property is located. The URA shall not remove or alter the
Facade Improvements except in performing any maintenance or repair thereof in accordance
with this Facade Easement.
6. INDEMNIFICATION
Grantor, or its successors and assigns, shall indemnify and hold harmless the URA and the City
of Fort Collins, Colorado (the "City") from and against any damage, liability, loss or expense
(including attorneys' fees) incurred by the URA or the City arising out of or in any way
connected with the Facade Improvements, their use, maintenance, repair or replacement,
except with regard to any use, maintenance, repair or replacement made by the URA or the
City, or their employees, agents or contractors, or caused by the gross negligence or willful
misconduct of the URA or the City, or their employees, agents or contractors. Further, Grantor,
or its successors and assigns, shall indemnify and hold harmless the URA and the City from and
against any damage, liability, loss or expense (including attorneys' fees and costs) incurred by
181
the URA or the City arising out of, or in any way connected with the environmental conditions
on, of or affecting the Property that exist as of the date of this Façade Easement.
7. INSURANCE
Grantor shall purchase and maintain property and casualty insurance on the Property,
including the Facade Improvements, to the full insurable value thereof. Grantor shall further
purchase and maintain general liability coverage in connection with the Property, including the
Facade Improvements, in amounts at least equal to the maximum amount of recovery against
public entities and employees under the Colorado Governmental Immunity Act (C.R.S. §24‐10‐
101 et seq.) and any amendments to such limits which may from time to time be made. The
URA and the City shall be named as additional insureds on all such policies. All insurance
required hereunder shall be issued by an insurance company authorized to do business in
Colorado which meets all the requirements of the Division of Insurance for that purpose. The
URA or the City may periodically require from Grantor proof of the insurance coverage
required herein.
8. SUCCESSOR ENTITY TO THE URA
In the event that the legal existence of the URA terminates during the Term of this Façade
Easement, it is expressly acknowledged by all the parties hereto that the City is designated the
URA's successor entity, and all rights and obligations of the URA set forth herein shall
thereupon become the rights and obligations of the City.
9. SUBJECT TO AGREEMENT
This Façade Easement shall be subject to the terms and conditions of that Façade Agreement
between the URA and the Grantor dated __________ , 2013 and recorded with the Clerk and
Recorder of Larimer County, Colorado of even date herewith and incorporated herein by this
reference.
DATED this __ day of ____ , 2013.
182
1
1
Storefront Improvement
Program
URA Board Meeting
June 18, 2013
2
Storefront Improvement Program
• North College Urban Renewal Area
• Encourage voluntary rehabilitation of commercial
buildings
• Restore commercial storefronts and/or building
facades
• Further goals and objectives identified in N.
College Urban Renewal Plan and City Plan
ATTACHMENT 2
183
2
3
Storefront Improvement Program
Eligibility Criteria
• Property owners of commercial buildings and
tenants of ground floor commercial buildings
• Active sales tax license
• A business owner who is leasing space:
– 5 years remaining on lease, or in operation for
more than 5 years
– Approval from owner
4
Storefront Improvement Program
Eligible Improvements
• Contribute to the visual enhancement of the
property
• Viewed from the public right-of-way
• Comprehensive, incorporating enhancements to
several components of the existing façade
184
3
5
Storefront Improvement Program
Program Administration
• Grant of 50% of the total project cost
• Maximum URA contribution of $5,000 per
storefront
• Façade easement required with the Larimer
County Clerk and Recorder
• Funds paid on reimbursement basis
6
Storefront Improvement Program
Design Guidelines
• Real or authentic building materials encouraged
• Green building practices encouraged
185
RESOLUTION NO. 059
OF THE BOARD OF COMMISSIONERS OF THE
FORT COLLINS URBAN RENEWAL AUTHORITY
ADOPTING THE STOREFRONT IMPROVEMENT PROGRAM FOR THE
NORTH COLLEGE URBAN RENEWAL AREA
AND AUTHORIZING THE EXECUTIVE DIRECTOR
TO ENTER INTO PROJECT REIMBURSEMENT AGREEMENTS
WHEREAS, in 2004 the City of Fort Collins adopted the North College Urban Renewal Plan
(the “Plan”) with the intended purpose of accomplishing the City’s development objectives for
improving the viability of the area; and
WHEREAS, the North College Urban Renewal Area is identified within the City Plan as a
Targeted Redevelopment Area and is a priority for future development, capital investment, and
public incentives; and
WHEREAS, pursuant to the Colorado Urban Renewal Law (Sections 31-25-101, et seq.,
Colorado Revised Statutes), the Fort Collins Urban Renewal Authority (the “Authority”) has been
granted all the powers necessary or convenient to carry out and effectuate the purposes of the Urban
Renewal Law, including, but not limited to, the power to undertake urban renewal projects and to
make and execute related contracts and other instruments; and
WHEREAS, based on the Plan, staff of the Authority has evaluated and identified specific
policies, measures and programs intended to carry out the purposes and accomplish the objectives
of the Authority and Plan in the North College Urban Renewal Area; and
WHEREAS, in order to encourage the voluntary rehabilitation of commercial buildings,
improvements and conditions within the North College Urban Renewal Area, staff has developed
a program to provide financial assistance to property owners and/or business tenants seeking to
renovate or restore their commercial storefronts and/or building facades that impact the viewshed
from the North College Avenue right-of-way, called the Storefront Improvement Project; and
WHEREAS, the Storefront Improvement Program will be available to property owners and
tenants of ground floor commercial buildings within the North College Urban Renewal Area who
are in good standing, and will provide reimbursement of up to 50% of project costs to a maximum
of $5,000, for voluntary improvements to enhance facades and other features visible from the North
College Avenue right-of-way, and is more particularly described on Exhibit A, attached hereto and
incorporated herein by this reference (the “Program”); and
WHEREAS, in order to implement the Program, the Executive Director will fund such
projects as budgeted Program funds will allow, to be selected from applications received through one
funding cycle in 2013, and, assuming the Program continues, through two funding cycles per year
in subsequent calendar year; and
186
WHEREAS, the Executive Director will enter into a reimbursement agreement with each
selected recipient in order to specify the requirements for the Program and for reimbursement, and
to require the execution and recording of a facade easement to protect the Program improvements
for a period of not less than five years; and
WHEREAS, the Board of Commissioners of the Authority has determined that the Storefront
Improvement Program as described will further the goals and objectives identified in the North
College Urban Renewal Plan and City Plan.
NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF
THE FORT COLLINS URBAN RENEWAL AUTHORITY as follows:
Section 1. That the Board hereby finds and determines that the Storefront Improvement
Program for the North College Urban Renewal Area as generally described in Exhibit A, attached
hereto and incorporated herein by this reference, is necessary, convenient, and in furtherance of the
Authority’s purposes and the North College Urban Renewal Plan, and the Board hereby authorizes
and approves the same.
Section 2. That the Board hereby authorizes the Executive Director to carry out the
Program as described in this Resolution and to enter into project reimbursement agreements with
Program participants consistent with, and in furtherance of the intended purposes of, the Program
and this Resolution. The Executive Director is further authorized to execute such facade easement
documents or other instruments as may be necessary or appropriate to carry out the Program as
described.
Passed and adopted at a regular meeting of the Board of Commissioners of the Fort Collins
Urban Renewal Authority this 18th day of June A.D. 2013
___________________________________
Chairperson
ATTEST:
_________________________________
Secretary
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EXHIBIT A TO RESOLUTION
FORT COLLINS URBAN RENEWAL AUTHORITY
NORTH COLLEGE STOREFRONT IMPROVEMENT PROGRAM
PROGRAM GUIDELINES
(June 18, 2013)
Program Overview and Purpose
The purpose of the Storefront Improvement Program (Program) is to encourage the voluntary
rehabilitation of commercial buildings, improvements and conditions within the North College
Urban Renewal Area by offering financial assistance to property owners and/or business
tenants seeking to renovate or restore their commercial storefronts and/or building facades.
Improvements to commercial storefronts and building facades helps to address and remedy
conditions in the area that impair or arrest the sound growth of the City and promotes the
implementation of the Comprehensive plan and its related elements.. Approved participants of
the program are eligible for reimbursement, upon the completion their approved project. While
the program provides financial assistance to property owners and/or business tenants, the
fundamental purpose of the grant is to further the goals and objectives identified in the North
College Urban Renewal Plan and the City’s Comprehensive plan. The Program is managed and
administered by Staff in the Fort Collins Urban Renewal Authority.
Eligibility Criteria
Eligible participants include property owners of commercial buildings and tenants of ground
floor commercial buildings with an active sales tax license located within the North College
Urban Renewal Area. A business owner who is leasing space must have:
A current lease with a minimum of five (5) years remaining from the date of Application,
or provide evidence that the business has operated in Fort Collins for over five (5) years;
and,
Written approval from the property owner to participate in the Program and a Façade
Easement, signed by owner, which will be recorded upon project completion.
Ineligible participants of the program include:
Businesses that are required by contractual arrangement to maintain standardized
décor, architecture, signs, or similar features.
Occupants or owners of buildings not current with property taxes, water bills; or properties
possessing any sort of non‐mortgage liens (i.e. mechanics lien, etc.).
Occupants or owners of buildings that have active code enforcement complaints against the
subject property.
Eligible Improvements
Eligible improvements include improvements that contribute to the visual enhancement of the
property as viewed from the public right‐of‐way. Eligible improvements are intended to result
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in the rehabilitation of the area in a manner which is compatible with and complementary to
unique circumstances in the area. Improvements must be comprehensive, incorporating
enhancements/additions to several components of the existing façade.
Examples of eligible improvements include:
Painting and masonry
cleaning/restoration
Exterior lighting
Trim
Window enhancements
Cornices
Gutters and downspouts
Signs
Canopies and awnings
Limited accessibility improvements
Ineligible improvements include:
Roofs
Structural foundations
Billboards
Security systems
Non‐permanent fixtures
Interior window coverings
Vinyl awnings
Personal property and equipment
Soft Costs (architectural drawings,
engineering, etc.)
Any improvements not visible from
the public right‐of‐way.
Landscaping
Parking lot improvements
Program Administration
The Program provides participants the opportunity to receive reimbursement of up to 50% of
the total project cost, up to a maximum URA contribution of $5,000 per storefront. The
owner/tenant must use private, non‐URA funds to match the URA grant.
Property owners will be required to record a façade easement with the Larimer County Clerk
and Recorder that will expire within five years of the date of completion. The easement
requires the owner to maintain the façade, to get URA approval of subsequent changes, and it
gives the URA the ability to make repairs and lien the property if the façade is not maintained.
After work has been completed, property owner/tenant will be required to display a sign
(provided by the URA) indicating participation in the Storefront Improvement Program. The sign
will be displayed either on the exterior or in the front window of the building for a period of
thirty (30) days.
Funds are paid by the URA on a reimbursement basis only after:
The applicant has paid his/her vendor(s) in full;
The façade easement is recorded;
A Letter of Completion is obtained from the City;
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The project is determined to have been completed in accordance with the Plan
approved by the URA; and
Proof of matching funds has been provided and approved by the URA.
Design Guidelines
The use of real or authentic building materials in the construction of the façade is highly
encouraged. For example, real stone not faux stone, real brick masonry, and true cementitious
stucco, not an EIFS‐type system. Although green building practices may not always have much
application in a storefront improvement program, the City of Fort Collins encourages these
practices wherever possible. All projects must comply with the City of Fort Collins Land Use
Code.
Program Steps
Step 1: Pre‐Application. Applicants must meet with URA staff prior to submitting formal
application to review program guidelines and application process. The pre‐application meeting
provides an opportunity for review of the program requirements, approval process, and terms
and conditions of the facade easement.
Step 2: Application Submission. The following information must be submitted as part of
application process:
1. A completed “Storefront Improvement Program” application. The application form is
attached to this document.
2. A brief narrative describing the project. The narrative should address the following topics:
A brief history of the site/building.
A description of the work proposed.
The amount of funding requested from the URA.
3. Current photo(s) of the property.
4. Color façade elevation drawings with proposed materials called‐out/labeled. These must be
developed by a licensed professional architect.
5. A detailed cost breakdown of the proposed improvements prepared by the design architect
and/or contractor. “Eligible costs” refer only to costs associated with work proposed on the
façade(s).
6. A minimum of three (3) bids from competitive, licensed contractors to do the work on the
façade.
Step 3: Project Approval. If the URA approves the project, the applicant will be provided with a
Project Agreement. The Project Agreement is valid for one calendar year from the date of
approval. The Façade Easement is required to be signed by the property owner at the time of
Project Agreement, and will be recorded only upon project completion. Once the applicant
receives the Project Agreement from the URA, the following steps can be followed:
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Prepare final plans and obtain all necessary City permits to commence construction.
Submit a copy of these permits to the URA.
Construction of improvements must begin within ninety (90) days from the date that
the URA approves the commitment otherwise financial award expires.
Begin and complete construction on the project.
Keep all billing documents (checks, invoices, contractors’ lien wavers) for
reimbursement purposes.
Step 4: Project Completion/Reimbursement. Upon completion of the project a Façade
Easement will be recorded with the Larimer County Clerk and Recorder. Once the easement has
been recorded, the applicant submits all receipts for completed, eligible work to URA. Staff will
review all documentation for accuracy, and final funding is dispersed 15 business days after
sufficient reimbursement documentation is approved by the URA.
Step 5: Program Monitoring. Under this program, properties are inspected every other year to
determine if the maintenance obligations of the building owners or tenants are being met, if
changes have been made to the facades without URA approval and to create a benchmark for
future monitoring.
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Fossil Creek Wetlands Natural Area Parcel / Easement request loca�on ±
Fort Collins City Limits
Natural Areas
Conserva�on Easements
Area Loca�on Map
A�achment 1
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