HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 03/26/2013 - ITEMS RELATING TO AN AGREEMENT BETWEEN THE CITY OFDATE: March 18, 2013
STAFF: Darin Atteberry, Bruce Hendee
Josh Birks, Mike Beckstead
AGENDA ITEM SUMMARY
FORT COLLINS CITY COUNCIL 8
SUBJECT
Items Relating to an Agreement Between the City of Fort Collins, the Fort Collins Downtown Development Authority,
and Woodward, Inc. to Provide Business Investment Assistance for the Relocation and Construction of the Company’s
Headquarters and Expanding its Manufacturing and Office Facilities.
A. First Reading of Ordinance No. 55, 2013, Authorizing and Approving the Execution and Delivery by the City
of an Agreement with Woodward, Inc. and Related Documents, Including the Authorization of a Borrowing,
in Connection with an Economic Development Project Relating to Woodward, Inc., and Providing Other
Matters Related Thereto.
B. First Reading of Ordinance No 56, 2013, Appropriating General Fund Reserves to Fund Capital Public
Improvements in Connection with a Community Development Business Assistance Agreement Between the
City, Downtown Development Authority, and Woodward, Inc. Regarding the Link-n-Greens Development.
EXECUTIVE SUMMARY
City Council will consider two items related to providing business investment assistance to Woodward, Inc. to
encourage the relocation and construction of the company’s headquarters and expanding its manufacturing facilities
in Fort Collins. The project will retain or create between 1,400 and 1,700 primary jobs in the community, provide 29
acres of improved open space along the river (including habitat restoration), and anchor the southeastern edge of the
River District with a major employer. The two items include:
A. An Agreement between the City, Downtown Development Authority, and Woodward, Inc.; and
B. An appropriation of $2.27 million in General Fund Reserves in connection with the Agreement with Woodward,
Inc.
BACKGROUND / DISCUSSION
Project Overview
Location
This area consists of 101.5 acres and is generally located at the southwest corner of East Lincoln and South Lemay
Avenue. The Cache la Poudre River is the southern boundary and the majority of the western boundary of the P.D.P.
The Poudre River Trail is located on the property within an easement. The project is zoned C-C-R Community
Commercial – Poudre River District, and the proposed uses are permitted in this zone district at this location.
History
The land is currently used as the Link-n-Greens golf course which has been in operation since 1986. The property
contains a barn, silos and outbuildings known as the Coy/Hoffman Barn, which were designated on the Colorado State
Register of Historic Properties in 1995. The barn is associated with the earliest development of agriculture in the area,
having been built during the 1860s as part of a homestead. Woodward has expressed an interest in working with the
City in recognizing the historic importance of the downtown river corridor. Although there are no specific plans to date,
they have indicated an interest in participating in some manner in recognizing the Coy Barn and other historic features.
As part of the development the barn will be renovated. A specific use has not been identified, although, in order to
protect the structure, it may not be open to the general public.
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Project Description
The proposed Woodward project is being established to accommodate a new campus to accommodate the company’s
continuing growth. Woodward is a global company and has been in Fort Collins since 1955. They have continued
to experience growth in sales and breadth of market of their products. The company serves two major market sectors,
including aerospace and energy. It is Woodward’s intent to expand their facilities to meet the growing demand for their
products and to expand in northern Colorado. Over time, the project will be home to their international headquarters
and for the global headquarters of up to two of their businesses: Industrial Turbomachinery Systems (ITS) and Engine
Systems (ES). As a large base level employer Woodward generates over $2 billion in sales per year.
Woodward has outgrown their Drake facility and need to expand their overall facilities to accommodate continued
growth. Woodward intends to develop a campus of office, manufacturing, and testing facilities on the Link-N-Greens
site. The campus will include a collection of buildings with parking areas served by private drives. In conjunction with
the campus, a retail and commercial center is proposed to be located in the southeast corner of the site.
Approximately 70,000 square feet of office and commercial development is planned for this area. The combined
building footprint of the industrial/manufacturing facility is projected to be 600,500 square feet in buildings ranging from
one to three stories. A future phase of construction will contain an unknown amount of commercial development
including service based restaurant, retail and office for the benefit of the general public and Woodward employees.
Development of the industrial campus for Woodward will occur in four phases beginning with a first phase of
approximately 259,300 square feet. Timing of each of the phases will be based on market demand. Unlike the Drake
campus this one will not be fenced. Instead security will be through other measures, primarily at the buildings. This
will allow the campus to have an open street-front landscape appearance. The project plan is divided into Phase One
and Future Phases up to four phases. Phase One includes the core components of the Woodward operations and
would represent over $100 million in investment. Over all four phases construction would be approximately $200
million (including production equipment). The river restoration area would be dedicated to the City and be constructed
with phase one.
The project anticipates four phases as described below
• Phase I – 259,000 square feet of manufacturing and office space including the relocation of the ITS
operations from the Drake/Lemay site. In addition, this phase includes receiving and material space, a
production support building, and a café/multipurpose building. Woodward has committed to start this project
with final approval of this Agreement and their Board of Directors.
• Phase II – 60,000 square feet office building to include the relocation of the Corporate Headquarters from the
Drake/Lemay site. Final decision to proceed on this phase anticipated in early 2014.
• Phase III – 209,000 square feet of manufacturing and office space including the relocation of the ES
operations from Loveland. This expansion may occur on the Drake/Lemay site rather than at Link-N-Greens.
• Phase IV – 72,000 square feet Energy Tech Center. In recent discussions this phase may happen
concurrently with Phase II. A decision on this phase is likely in early 2014.
• Drake/Lemay Facility – The facility will remain a productive part of Woodward’s operations. At this time, it
is unclear what aspect of the business will use the facility.
Woodward has been in discussion with the City over the last 6 to 8 months on details of the project layout and
relationship with the community. The project was reviewed and approved unanimously by the Planning & Zoning Board
on February 21st. There was no opposition to the project. Woodward intends to close on sale of the property in April
or May of 2013 with site work for Phase I commencing in August or September of 2013. The estimated time of
completion of construction for Phase I would be late winter of 2015 with delivery of production parts by 2016.
Public Improvements
The project will utilize Tax Increment Financing to make various upgrades to various site features. The first three public
improvements listed below will be completed as part of Phase I. Following is a brief description:
• Transmission Line – Currently there is a significant Platte River Power Authority (“PRPA”) transmission line
that crosses the site diagonally from Northeast to Southwest. The current location of the transmission line
impacts the development potential of the property. The City, working with PRPA, will cause the transmission
line to be relocated along Lemay Avenue extending across Mulberry Street and connecting back to the current
alignment south of the Poudre River. The route of the transmission line will be positioned back from Lemay
March 26, 2013 -3- ITEM 8
far enough to allow for a row of trees. Additionally, the new route will reduce the impact to the City owned
natural areas along the river reducing the number of existing towers in the natural area. The Land
Conservation and Preservation Board supported the proposed alignment on March 13, 2013.
• Right of Way Improvements – The City will design and construct improvements to both Lincoln Avenue and
Lemay Avenue required by the proposed relocation and expansion of Woodward’s corporate headquarters
and production facility. The improvements along Lincoln Avenue will generally include a center turn lane, bike
lanes, and a temporary pedestrian path along the south side of the street. Improvements to Lemay Avenue
will include a parkway, trees, sidewalk, street lighting, and other improvements to comply with the full street
cross section. Some improvements may be on an interim basis until funds are available for the broader
Lincoln Boulevard Improvements.
• Open Space Improvements – Woodward will gift a 29 acre parcel to the City for the purpose of restoring the
property to a natural condition. The restoration will include landscape and habitat improvements based on a
design developed by the City’s natural areas department. The tax increment financing will be used to help
offset the design and construction costs related with these improvements.
• Lincoln Boulevard Improvements – To the extent available, tax increment financing may provide funds to
assist with future enhancements along Lincoln Avenue. intent of the improvements is to transform the
standard cross section into a boulevard similar to Mountain Avenue west of Old Town. The specific details
of these improvements are not set but may include construction of new or improved street and intersections,
sidewalks and benches, bicycle lanes and racks, trees and other landscaping, gateway features, transit
related infrastructure, storm water improvements, directional signage, public art and other project for a positive
neighborhood image, and interpretive features of culture and history relevant to the area. These improvements
are subject to a successful voter initiative to provide capital funding for the portion of the cost not covered by
tax increment financing and subject to the availability of tax increment depending on the timing of Phase III
construction.
Utility Partnership
There is an opportunity in the future for Woodward to partner with the City and participate in the Fort Collins Solar
Program (FCSP). The intent of the FCSP is to enter into 20 year purchase power agreements with commercial
customers for the purchase of the energy produced from customer photovoltaic systems. The program is currently
funded in the 2013 and 2014 budgets. Timing is a significant issue related to solar installed with this program. Utilities
are allowed to apply a multiplier of 3 towards meeting the State’s Renewable Energy Standard up until July 2015. The
FCSP must use the multiplier to be economically practical. Rooftop space for the installation of solar at Woodward
may or may not be available until 2015. Fort Collins Utilities has expressed an interest in working with Woodward as
a participation in the Note, the one caveat will have to be completion of any solar array whose energy will be purchased
through the FCSP before July of 2015.
Fort Collins Utilities (FCU) is working with Woodward through the Integrated Design Assistance Program (IDAP) and
has committed $75,000 in funds to assist with this energy efficiency design. Through this program, FCU is providing
financial and technical assistance in the design phase and will provide a financial incentive based on facility energy
savings. Utilities staff are participating in an early design charrette attended by multiple stakeholders to promote a
holistic approach to design. A copy of the preliminary IDAP package is attached.
In addition to the work on site, there is also discussion related to a partnership that would utilize Woodward equipment,
which would allow them to demonstrate their equipment, at the Drake Waste processing plant to use the methane
created in the treatment process to make electricity. The electricity created would qualify towards our Renewable
Energy Standard.
PRPA Transmission Line Relocation IGA
The City will enter into an Intergovernmental Agreement (“IGA”) with PRPA subject to approval by the City Council.
The IGA provides that the City of Fort Collins will pay for the relocation and installation of the transmission lines that
currently cross the property. Funding for the relocation of the lines will be paid from tax increment financing (“TIF”)
generated by the development of the Woodward Property. The IGA has been presented to and approved by the PRPA
Board of Directors. Relocation of the line will occur starting in 2013 and will result in one new transmission tower
placed in a natural area just south of Mulberry and the removal of three transmission towers northwest of Mulberry
in a natural area. The City, upon approval of the IGA will manage the project including all public outreach.
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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. Woodward’s proposed relocation and expansion represents an opportunity
to strengthen the existing high quality of place. The Project meets numerous City Plan policy objectives, occurs in a
Catalyst Project Area (as defined by City Plan), and presents the opportunity to enhance and expand the Poudre River
Corridor natural area. Thus, the project represents an opportunity to achieve more than economic outcomes but an
opportunity to strengthen the overall community.
City Plan Policy Objectives
The project as proposed by Woodward meets a variety of City Plan objectives, including but not limited to:
Economic Health
• EH 1.1 – Support Job Creation: The project will create between 185 and 400 new primary jobs as well as
transfer between 515 and 600 jobs from within the region.
• EH 1.4 – Target the Use of Incentives to Achieve Community Goals: The project will achieve broader
community goals as described, including natural areas restoration, open space preservation, and
infill/redevelopment.
• EH 2.1 – Support Targeted Industry Clusters: Woodward is a member of the Clean Energy cluster and an
active member of the Colorado Clean Energy Cluster non-profit entity supporting clean energy research and
development.
• EH 4.1 – Prioritize Targeted Redevelopment Areas: The Link-N-Greens site is within an identified targeted
redevelopment areas within City Plan.
Environmental Health
• ENV 1.1 – Protect and Enhance Natural Features: The project as proposed and approved by the Planning
and Zoning board protects and restores approximately 29 acres of open space adjacent to the Cache la
Poudre River.
• ENV 2.1 – Maintain System of Open Lands: The project adds to the open space system surrounding the
Cache la Poudre River. Through habitat restoration it will enhance the integrity of wildlife habitat.
• ENV 2.10 – Maintain Access: The Poudre River Trail currently travels along the boundary of the project.
Subject to available funding, the trail will be moved further from the river’s edge with select developed river
access points. This approach provides access to the natural area while providing for habitat restoration.
• ENV 5.4 – Support Renewable Energy in New Development: The project is actively engaged in the IDAP
program provided by FCU to achieve facility energy savings. In addition, Woodward is looking to partner with
FCU through the Fort Collins Solar Program.
• ENV 7.11 – Participate in Research, Development and Demonstrations: Woodward and FCU are
contemplating a partnership to foster research, development and demonstrations projects in the renewable
energy and energy management sector.
• ENV 24.2 – Conserve Natural Features: The project includes a dedication of 29 acres along the Cache la
Poudre River. This land also includes an area of a historic river oxbow.
• ENV 24.4 – Restore and Enhance: The project includes the restoration of landscaping and habitat on a 29
acre parcel adjacent to the river.
• ENV 26.3 – Ensure Setbacks for Channel Instability and Improve Channel Migration: The 29 acre natural
parcel includes an opportunity to stabilize the river bank and allow for greater lateral migration, potentially in
the location of the historic river oxbow.
Community and Neighborhood Livability
• LIV 5.1 – Encourage Targeted Redevelopment and Infill: The Link-N-Greens site is encompassed by the
identified targeted redevelopment areas within City Plan.
• LIV 21.4 – Provide Access to Transit: The project includes access to bus stops along Lincoln Avenue and
Lemay Avenue. In addition, future enhancements to Lincoln Avenue may include additional transit facilities
intended to provide circulation to and through Old Town.
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Transportation
• T 3.3 – Transit Supportive Design: Interim and future enhancements to Lincoln Avenue will seek to integrate
transit and alternative modes of transportation into the immediate improvements and final design.
Catalyst Project Areas
During the Plan Fort Collins process project team members, City Council, and the public identified areas throughout
the city that have the potential to “showcase” opportunities to embrace the Plan Fort Collins vision themes of Innovate,
Sustain, and Connect. Through a combination of public and private actions that complement and build upon one
another, these areas have the potential for lasting, desirable change. The Lincoln Triangle Area was identified as one
of these Catalyst Project Areas.
The Lincoln Triangle Area contains a rich mix of historic and new development as well as substantial vacant and
underdeveloped parcels. The Link-N-Greens site is one such underdeveloped area. The proposed Project meets many
aspects of the Area Vision, including:
• Showcase Heritage: The Coy/Hoffman Barn will be maintained as a part of the project preserving a link to
the history of the area.
• River Links: The dedication of additional open space along the river will provide an opportunity to enhance
and expand the Poudre River corridor.
• Connect: The interim and ultimate improvements along both Lemay and Lincoln Avenue will provide
additional pedestrian and bicycle connective in the area.
Finally, the Lincoln Triangle Catalyst Project Area lists several priority projects; one of these projects is the
improvement of Lincoln Avenue. The City has already begun the planning of these improvements; however, the
project, if all phases are completed, may provide much needed funding for the completion of the project.
Net Benefits to Other Taxing Entities
The Project will generate additional benefits and costs for local taxing districts other than the City and the DDA.
Additional discussion of the City and DDA fiscal impacts occurs below under the Financial Assistance Overview
section. Both Larimer County and the Poudre School District (“PSD”) will see net benefits from the project, primarily
from additional property tax revenue. Despite the site’s location within the DDA, both Larimer County and PSD retain
50 percent of any property tax increment generated in the district. The net benefits to each are summarized below:
• Larimer County: Between $5.5 million and $5.8 million in net benefits with a present value of $3.9 million to
$4.1 million (using a 5 percent discount rate).
• PSD: Between $11.7 million and $12.0 million in net benefits with a present value of $8.1 million to $8.2 million
(using a 5 percent discount rate).
Financial Assistance Overview
The opportunity to retain approximately 700 primary jobs and encourage the expansion of a business to include 700
– 1,000 new primary jobs to Fort Collins (with 185-400 new jobs to Northern Colorado) generates significant positive
economic impacts to the community (See Financial/Economic Impacts). As a result, the City Council will consider a
Business Assistance Agreement (the “Agreement”) providing three primary forms of investment in the proposed
Project. These investments include: (1) tax increment assistance through the DDA; (2) rebate of use tax on eligible
manufacturing equipment and construction materials; and (3) rebate of applicable development review, capital
expansion, street oversizing, and utility plant investment fees (“Capital Expansion/PIF Rebates”).
March 26, 2013 -6- ITEM 8
Table 1
Business Assistance Package Summary
Response
DDA Tax Increment Revenues $16.7 MM
Manufacturing Equipment and Construction Use
Tax Rebates (80%)
$3.8 MM
Development Fee Rebates (100%) $0.3 MM
Capital Expansion/PIF Rebates (80%) $2.7 MM
Total $23.5 MM
Tax Increment Assistance
Woodward has focused on the Link-N-Greens property (see Attachment 1: Project Location Map) for the potential
relocation and expansion of the company’s corporate headquarters and production facilities. On March 5, 2013 City
Council, with unanimous support, considered the amendment of the DDA Plan of Development to include the property
on first reading of Ordinance No. 49, 2103. By amending the Plan of Development, the City Council enables the use
of tax increment financing to support the Project.
Based on a Larimer County Assessor Estimate of Future Value dated January 29, 2013 and the initial phasing
schedule provided by Woodward, the project will generate approximately $16.7 million in tax increment revenue over
the remaining life of the DDA area. These funds will be used to reimburse Woodward and the City for several costs
associated with the Project, including: facades, right of way improvements (Lincoln and Lemay), relocation of a Platte
River Power Authority (“PRPA”) transmission line, open space restoration, and future enhancements to Lincoln
Avenue, as shown in Table 2. In addition, a portion of the tax increment revenue will cover financing cost associated
with the reimbursement amounts.
Table 2
Summary of Public Improvement Costs
Estimated Total
Cost (Millions)
Tax Increment
Pledge (Millions)
Balance*
(Millions) Recipient
Building Facades $6.00 $3.80 $2.20 Woodward
Right of Way
Improvements $1.75 $1.75 $0.00 City
Transmission Line
Relocation $1.30 $1.30 $0.00 City
Open Space
Improvements
$3.50 $3.00 $0.50 City
Lincoln Boulevard $11.00 $2.85 $8.15 City
Financing $4.00 $4.00 $0.00 N/A
Total $27.55 $16.70 $11.15
*Any unfunded balance remaining after the TIF pledge is the responsibility of the recipient listed in
the table.
Woodward has generously agreed to advance the funds necessary to relocation the Transmission Line and construct
the Right of Way Improvements and Open Space Improvements (described above). The DDA and City have agreed
to reimburse this advance and evidence that commitment with a bond1. Tax Increment revenue will be used to repay
the Bond principal and interest on the bond will be variable and indexed to the 10 year U.S. Treasury Note rate2. This
1 The Bond is being issued pursuant to Article XX, Section 6 of the Colorado Constitution, Article V, Section 19.8
of the City Charter, the Downtown Development Authority Act, the Supplemental Act, and pursuant to the 2006
Election.
2 The actual interest rate will be determined by comparing the 10 year U.S. Treasury Note on the initial advance date
compared to the 10 year U.S. Treasury Note on each subsequent anniversary date and using the difference. At no
time will the interest fall below 0.25 percent per annum.
March 26, 2013 -7- ITEM 8
rate will likely fall well below the current market based cost of capital. Woodward has agreed to these terms as a way
to demonstrate their commitment to the community and improvement of the Lincoln Triangle Catalyst Project Area.
Due to the variable rate and uncertainty regarding phasing, the City has agreed to appropriate $2.27 million in General
Fund Reserves for the purpose of creating a reimbursement reserve. These reimbursement reserve funds will only
be required if the Tax Increment revenue generated by the project falls short of the amount necessary to reimburse
Woodward’s advanced funds with interest, as described in the Bond. In the event only Phase I is completed, the entire
amount of these funds may be needed to complete the capital projects. However, if only Phases I, II, and IV are
completed; the additional TIF generated by these additional Phases should eliminate the need for the reimbursement
reserve funds (depending on the actual schedule of these phases).
Use Tax Rebate
Woodward plans to invest approximately $169.1 million in new buildings and $50.5 million in new equipment as part
of the proposed Project. As part of the Agreement, City Council will consider rebating 80 percent of the use tax
collected in connection with these investments. The rebate would include approximately $2.6 million of the total $3.3
million due on construction materials and $1.2 million of the total $1.4 million due on eligible equipment see Table 3.
In both cases, the rebates go beyond the general fund portion of the rate. As a result, the general fund must bear the
additional cost of the rebate to avoid impacting revenue associated with the dedicated sales tax rates (e.g., Open
Space, Street Maintenance, Building on Basics, and Keep Fort Collins Great). This additional cost will be backfilled
from the revenue generated by indirect and induced economic impacts to the community. The estimated total backfill
is approximately $800,000 for all phases.
The actual amount of the use tax rebate will be tied to Woodward achieving an employment level of 1,400 by
December 31, 2018. The City will retain 40 percent of any rebate amount until the employment level has been reached
by Woodward. If the target employment level is reached after December 31, 2018 but before December 31, 2020
Woodward will receive the retained 40 percent less $500,000 (combined between use tax and development fee
rebates). Woodward will not be entitled to the remaining 40 percent if the target level is not reached by December 31,
2020.
Table 3
Summary of Use Tax Rebates
Estimated Total
(Millions)
Tax Rebate
(Millions)
Retained
Revenue
(Millions)
Backfill
(Millions)
Construction Materials $3.3 $2.6 $0.7 $0.7
Eligible Equipment $1.4 $1.2 $0.2 $0.1
Total $4.7 $3.8 $0.9 $0.8
Development Fee Rebate
As part of the Agreement, City Council will consider rebating 50 percent of the applicable Capital Expansion, Street
Oversizing and Utility Plant Investment fees due for the Project. In addition, City Council will consider rebating 100
percent of the applicable Development Review Fees (e.g., Plan Check, and Base Building Permit Fee). The rebate
will include approximately $3.0 million of the total $5.7 million due see Table 4. These fees are collected to offset the
cost each new project imposes on the capital infrastructure within the City. As a result, the cost of the rebate must be
backfilled from the revenue generated by indirect and induced economic impacts to the community. The backfilled
revenue will make each capital fund whole. The estimated total backfill is approximately $2.7 million.
The actual amount of the development fee rebate will be tied to Woodward achieving an employment level of 1,400
by December 31, 2018. The City will retain 40 percent of any rebate amount until the employment level has been
reached by Woodward. If the target employment level is reached after December 31, 2018 but before December 31,
2020 Woodward will receive the retained 40 percent less $500,000(combined between use tax and development fee
rebates). Woodward will not be entitled to the remaining 40 percent if the target level is not reached by December 31,
2020.
March 26, 2013 -8- ITEM 8
Table 4
Summary of Development Fees
Total
(Millions)
Rebate
(Millions)
Retained
Revenue
(Millions) Backfill
Wastewater $0.60 $0.30 $0.30 $0.30
Water $1.10 $0.55 $0.55 $0.55
Stormwater $0.30 $0.15 $0.15 $0.15
Electric $2.00 $1.00 $1.00 $1.00
Street Oversizing $1.20 $0.60 $0.60 $0.60
Capital Expansion $0.20 $0.10 $0.10 $0.10
Development Review/Other $0.30 $0.30 $0.00 $0.00
Total $5.70 $3.00 $2.70 $2.70
Use Tax and Fee Backfill
As described, the Agreement contemplates rebates of use tax and fees that will require backfill by the General Fund.
Based on the Economic Impact Analysis, there is between $3.8 million and $6.2 million in indirect and induced net
benefits to the City from various sources over the first 16 years (these sources exclude any revenue from utilities as
they cannot be comingled with General Fund revenues to meet these obligations). These indirect and induced impacts
and the resulting revenue will backfill the portions of the rebates over a period of between 10 and 16 years depending
on financing costs.
The total backfill required (including use tax and fees) assuming all phases are constructed on schedule is
approximately $3.5 million. However, the actual Project phasing will impact the contemplated use tax rebates and
development fee rebates. As stated, the nature of the rebate will require backfill for a portion of the total rebate
amount. Therefore, the backfill shifts depending on the construction phasing. Table 5 provides an overview of the total
rebates and the required backfill. Under the Phase I only scenario the City will rebate $1.37 million in use tax and $1.73
million in development fees for a total rebate of $3.11 million. This scenario requires a backfill of $1.93 million.
Furthermore, the hold back of 40 percent of the rebates will influence the actual cash needed in any given year to fund
this backfill. The 40 percent holdback of the rebates will most likely not be due to Woodward until after December
31,2018 but before December 31, 2020. This lowers the backfill amount as initially need for each phase. Staff
continues to evaluate the best method to fund the backfill amount.
Table 5
Overview of Use Tax by Scenario
Phase I Only
(Millions)
Phase I,
II, &
IV(Million
s)
All Phases
(Millions)
Use Tax Rebate $1.37 $2.43 $3.8
Use Tax Backfill $0.29 $0.51 $0.80
Development Fee Rebates $1.73 $2.36 $2.98
Total Rebates $3.11 $4.79 $6.78
Total Backfill Required $1.93 $2.68 $3.50
Initial Backfill (60%) $1.16 $1.61 $2.10
Holdback (40%) $0.77 $1.07 $1.40
NOTE: The proposed project is subject to change. Changes in timing, final construction investment, and final
equipment purchases will affect both the financial assistance offered by the City and the financial/economic impacts
to the City.
March 26, 2013 -9- ITEM 8
FINANCIAL / ECONOMIC IMPACTS
Economic Impact Analysis Overview
The Project will generate economic impacts during construction and operations. The construction activities, occurring
while Woodward builds its new facilities, will generate one-time impact for construction workers and businesses in the
area. The on-going operations of the firm will create annual economic impacts, employing workers in the community
and supporting additional economic activity throughout the region.
The economic impacts were evaluated based on two scenarios: (1) a total employment level of 1,400, including 700
existing employees, 515 employees transferred from within the region, and 185 new employees; and (2) a total
employment level of 1,700 including 700 existing employees, 600 employees transferred from within the region, and
400 new employees. Both scenarios assume a total investment in the buildings of $169.1 million and $50.5 million
in manufacturing equipment. In addition, both scenarios assume an average annual salary for all jobs of $76,000,
which equates to 170% of the Larimer County average annual income ($44,564 based on Bureau of Labor Statistics
Employment and Wage data, Fourth Quarter 2011).
The economic impact analyses (See Attachment 8 and 9) estimate the one-time impacts from construction will be the
same for both scenarios with approximately 1,652 jobs supported by the $169.1 million investment at an average
annual salary of $55,106. In addition, the analyses estimate that the facility will support between 1,400 and 2,227 total
jobs see Table 6. These estimates assume a modest manufacturing multiplier for the transferred jobs and a full
manufacturing multiplier of 2.23 for the new jobs. The average salary ranges from $49,794 to $52,393.
Table 6
Summary of Economic Impacts
Scenario 1 Scenario 2
Construction (One-Time)
Jobs 1,652 1,652
Earnings $91,034,579 $91,034,579
Average Earnings per Job $55,106 $55,106
Operations (On-going)**
Jobs 1,400 2,227
Earnings $73,349,666 $110,890,650
Average Earnings per Job $52,393 $49,794
**Total change in earning during the first year of full employment.
In addition, the analyses evaluate the fiscal impacts to the City of Fort Collins, Larimer County, Poudre School District,
and Downtown Development Authority. These impacts include estimates of both revenues and expenses based on
the published 2012 budgets for each jurisdiction. Full details of the calculations can be found in the attached reports.
Furthermore, the analyses net out the costs of the proposed assistance described above before estimating additional
benefits. The net benefits are estimated to range from $8.7 million to $12.0 million (net benefits here includes all
revenue sources, e.g., sales and use tax, utility revenue, etc.); including all revenue sources see Table 7. The net
benefits previously described, between $3.8 million and $6.2 million, exclude the utility net benefits included here
because the rebate backfill cannot rely on utility funds to meet that obligation. Assuming a 5 percent discount rate the
present value of the estimated net benefits today is between $7.0 million and $9.1 million.
Table 7
Summary of Fiscal Impacts
Scenario 1 Scenario 2
Additional Benefits $32,541,701 $50,740,478
Additional Costs ($23,861,724) ($38,751,622)
Net Benefits $8,679,877 $11,988,856
Present Value of Net Benefits *** $6,957,716 $9,088,081
*** This analysis uses a 5% discount rate.
March 26, 2013 -10- ITEM 8
This project considers an expansion of an existing manufacturer in Fort Collins. Woodward is considering locations
outside the City for possible relocation and expansion of its manufacturing and headquarters operations. The company
currently employs 700 workers in the City and supports real and personal property of $22.3 million. Woodward’s
current operations represent approximately $850,000 in net revenues to the City annually. The new construction and
expansion would increase the company’s impact on Fort Collins by approximately $8.68 million over the next 16 years.
Therefore, the estimated value to Fort Collins if the manufacturer were to leave the city is a loss of $22.55 million over
the next 16 years or a loss to the city of $1.4 million per year on average or $16.2 million in present value. More than
27 percent ($6.25 million) of the total net revenue is generated in the first two years as shown in the graph below.
NOTE: The proposed project is subject to change. Changes in timing, final construction investment, and final
equipment purchases will affect both the financial assistance offered by the City and the financial/economic impacts
to the City.
General Fund Reserves Appropriation Impact
The proposed Project and the Agreement contemplate a phased approach to construction. Due to this phasing, the
commitments by the City, DDA, and Woodward shift accordingly. In addition, the timing of the phases may significantly
impact the available TIF pledge for the project. There are several potential scenarios that could unfold as Woodward
reacts to market demand. The most likely scenarios have been analyzed further. The impacts of each scenario to the
TIF and Loan are summarized in Table 8.
If Woodward never constructs more than Phase I, then the TIF will not support full repayment of the advanced funds
plus interest. The agreement contemplates the City appropriating up to $2.27 million for the purpose of creating a
reimbursement reserve. The need for these reimbursement reserve funds will change as additional phases are
completed by Woodward. Assuming Phase I, II, and IV are built, on the current proposed schedule, the need for these
additional funds will disappear. Staff recommends this approach because the community receives $4.8 million in public
improvements (Right-of-Way improvements and Open Space improvements) at a $2.27 million discounted cost in the
worst case. Otherwise, the TIF funds these costs exclusively. In addition, the City has agreed to stand behind the full
reimbursement of the advanced funds plus interest regardless of the Tax Increment revenue, interest rate increase,
or other unforeseen economic condition. This commitment is, however, subject to annual appropriation as required
by the Colorado State Constitution.
Table 8
Overview of TIF/Loan by Scenario
Phase I Only
(Millions)
Phase I,
II, & IV
(Millions)
All Phases
(Millions)
Total TIF Available $7.30 $11.10 $16.70
Façade Pledge $1.50 $2.80 $3.80
TIF Balance $5.80 $8.30 $12.90
Bond Principal $6.05 $6.05 $8.90
Estimated Interest $2.02 $2.25 $4.00
Additional Funds Required ($2.27) $0.00 --
ENVIRONMENTAL IMPACTS
Landscape
Of the 101.5 acre parcel almost one third of the site will be preserved and restored as natural area. A river restoration
area of approximately 28.7 acres is proposed as part of the project, and would be constructed as part of the initial
phase. Additionally, the remainder of the site will be designed incorporating Xeriscape principles.
The project’s Ecological Characterization Study reports that the Link-n-Greens site contains several natural habitats
and features, predominately the Poudre River corridor, several wetlands that have formed along the fringe of the golf
course ponds (0.10 acres), and 464 significant trees. The site’s existing habitat value is largely contained within the
March 26, 2013 -11- ITEM 8
areas immediately adjacent to the Poudre River due to the ornamental nature of the golf course and the lack of habitat
diversity associated with a bluegrass lawn. The site has also been evaluated for Threatened and Endangered species
and the only potentially suitable habitat was for the Preble’s Meadow Jumping Mouse. However, no populations of
jumping mouse are known to exist in the Poudre River downstream of Watson Lake (north of Bellevue).
To meet the standards associated with the Land Use Code, the project has proposed an overall buffer area of 28.7
acres instead of the 23.4 acres that would be required through the 300' standard. At no point is the proposed buffer
zone less than 210’ and the buffer zone is as large as 600’ along the historical oxbow (a U-shaped area where the
Poudre River was able to meander out of its main channel when it was connected with its floodplain). Staff has worked
extensively with the applicant to develop a river restoration project that would enhance the overall river habitat
substantially beyond conditions existing today. Additionally the Poudre River Trail will be realigned to allow more
distance between the river riparian habitats while still providing an interesting experience.
Noise
Production activities will be conducted within the proposed buildings and the level of noise is not anticipated to exceed
maximum allowable Db(A) levels. Buildings and service areas are located interior to the site to mitigate off site
impacts.
STAFF RECOMMENDATION
Both City and DDA staff recommend adoption of these Ordinances on First Reading.
BOARD / COMMISSION RECOMMENDATION
Planning and Zoning Board, February 21, 2013
Water Board, January 17, 2013
Land Conservation and Stewardship Board, March 13, 2013 (Meeting Minutes Unavailable)
Economic Advisory Commission, March 15, 2013 (Meeting Minutes Unavailable)
PUBLIC OUTREACH
Neighborhood Meetings: August 20, 2012(ODP), November 2, 2012 (PDP)
Natural Area/River Concept Neighborhood Meeting: January 30, 2013
In addition, the Fort Collins Area Chamber of Commerce commissioned a study conducted by Behavior Research
Center during February 2013. The study measured the attitude of registered Fort Collins voters in regard to various
issues within the community. Of the 301 respondents, most were in agreement on the need to retain existing
employers (88%) to create quality jobs. The study specifically asked respondents on whether Wooward, Inc. should
be a top priority for the City of Fort Collins. A resounding 85 percent agreed that retaining Woodward, Inc. should be
a priority for the City, while 9 percent were not sure and 6 percent did not see this as a priority.
ATTACHMENTS
1. Project Location Map
2. Drainage Easement Map
3. River Restoration Exhibit
4. Transmission Line Relocation Map
5. Water Board Meeting Minutes, January 17, 2013
6. Economic Impact Analysis, Project Blue Home, March 8, 2013 (Assumes total employment of 1,400)
7. Economic Impact Analysis, Project Blue Home, March 4, 2013 (Assumes total employment of 1,700)
8. Transmission Line Collaboration Letter from Woodward, March 12, 2013
ATTACHMENT 2
ATTACHMENT 3
UDALL NATURAL AREA
SPRINGER NATURAL AREA
SPRINGER NATURAL AREA
WILLIAMS NATURAL AREA
Platte River Power Authority/Woodward Link-N-Greens Realignment on Springer and Williams NAs
Created by City of Fort Collins Natural Areas - 2013
Project Area
Larimer County
# Existing Poles
# Proposed New Poles
Proposed Alignment
PRPA General Easement Area
Existing PRPA Transmission Line
City of Fort Collins Natural Areas
µ 0 125 250 500 Feet
ATTACHMENT 2
SPRINGER NATURAL AREA
WILLIAMS NATURAL AREA
SPRINGER NATURAL AREA
Inset: Project Site Detail
New Pole on Williams NA
Existing Pole to be moved
10-20' to the west
See Inset
ATTACHMENT 5
Prepared for:
City of Fort Collins
300 LaPorte Avenue
Fort Collins, Colorado 80522
Prepared by:
Impact DataSource, LLC
4709 Cap Rock Drive
Austin, Texas 78735
www.impactdatasource.com
A REPORT OF THE ECONOMIC IMPACT OF
PROJECT BLUE HOME IN FORT COLLINS, CO
March 8, 2013
ATTACHMENT 6
TABLE OF CONTENTS
Executive Summary………………………………………………...…………………………………………………………… 3
Project Summary
Introduction………………………………………………...……………………………………………………………………6
Description of The Project…………………………………………………………………………………………………6
Summary of the Economic Impact of the Project………………………………………………………………6
Analysis of Fiscal Impact
Costs and Benefits for Local Taxing Districts………………………………………………………………………7
City of Fort Collins…………………………………………………………………………………………………………8
Larimer County……………………………………………………………………………………………………………9
Poudre School District…………………………………………………………………………………………………9
Downtown Development Authority………………………………………………………………………………10
Summary of Incentives
Summary of Possible City Incentives for the Project…………………………………………………………11
Methodology
Conduct of the Analysis…………………………………………………………………………………………………… 12
Discussion of Economic Impact Calculations………………………………………………………………………12
Discussion of Fiscal Impact Calculations……………………………………………………………………………12
About Impact DataSource…………………………………………………………………………………………………15
Appendix A
Data & Rates………………….…………………………………………………………………………………………………17
Appendix B
Detailed Economic Impact Calculations…………………………………………………………………………… 28
Appendix C
Detailed Cost‐Benefit Calculations for:
City of Fort Collins.............................................................................................................. 36
Larimer County.................................................................................................................. 42
Poudre School District........................................................................................................45
Downtown Development Authority...................................................................................47
Page 2
EXECUTIVE SUMMARY
Project background
In Project Blue Home, a company is considering building, equipping and operating a new manufacturing facility and
corporate headquarters in Fort Collins. The firm plans to invest $169 million in new buildings and equipment. Upon
completion of the construction, they expect to hire 185 new employees and relocate 515 employees to Fort Collins from
nearby with average salaries of $76,000 per year.
Economic Impact
Project Blue Home will generate economic impacts during construction and operations. The construction activities,
occurring while the firm builds its new facilities, will generate a one‐time impact for construction workers and businesses
in the area. The on‐going operations of the firm will create annual economic impacts, employing workers in the
community and supporting additional economic activity throughout the region.
The one‐time construction activity will support 1,652 workers in the area and support $91 million in new earnings for
these workers. The operations will include a new corporate headquarters office and manufacturing facilities. The
corporate headquarters will be staffed by the firm's current headquarters staff located in Fort Collins. The manufacturing
operations are estimated to support 1,400 total workers and more than $73.3 million in workers' earnings annually.
Economic Impact
Construction (One‐Time): Total
Total Change in Jobs 1,652
Total Change in Earnings $91,034,579
Average Earnings per Job $55,106
Operations (On‐going)* Headquarters Manufacturing Total
Total Change in Jobs 0 1,400 1,400
Total Change in Earnings $0 $73,349,666 $73,349,666
Average Earnings per Job ‐ $52,393 $52,393
* Total change in earnings during the first year of full employment.
Fiscal Impact
Project Blue Home will generate fiscal impacts for the City of Fort Collins, Larimer County, the school district and other
local taxing districts. The table below provides a high‐level summary of the fiscal impacts for local taxing districts during
construction and over the first 16 years of operations.
Net Benefits During Construction and Over the First 16 Years for Local Taxing Districts
Present
Additional Additional Net Value of
Benefits Costs Benefits Net Benefits**
City of Fort Collins $32,541,701 ($23,861,724) $8,679,977 $6,957,716
Larimer County $10,737,544 ($5,238,339) $5,499,205 $3,901,525
Poudre School District $14,693,242 ($2,960,433) $11,732,810 $8,057,743
Downtown Development Authority (DDA) $23,837,852 ($5,511,061) $18,326,791 $12,712,803
Total $81,810,339 ($37,571,556) $44,238,783 $31,629,788
** This analysis uses a 5% discount rate.
Note: The project will generate revenue for hospital/health, library, water and pest control districts, but because additional costs cannot be
determined, these taxing districts are not included in the analysis.
Page 3
EXECUTIVE SUMMARY
Benefits and Costs for City of Fort Collins
The table below provides more detail on the sources of the additional benefits and costs for the city during construction
and over the first 16 years of the project. Appendix C contains the year‐by‐year calculations.
City of Fort Collins: Benefits, Costs & Net Benefits During Construction & Over First 16 Years
Additional Additional Net
Benefits Costs Benefits
Benefits:
Sales and Use Taxes after rebates $6,530,835 $6,530,835
Property Taxes on the Firm's Real Property* $0 $0
Property Taxes on the Firm's BP Property* $0 $0
Property Taxes on new Residential Property $27,911 $27,911
Capital Expansion Fees after rebates $3,194,183 $3,194,183
Building Permits and Fees $283,329 $283,329
Lodging Taxes $5,529 $5,529
Miscellaneous taxes and user fees $5,551,912 $5,551,912
City‐owned Utility Revenue $16,948,002 $16,948,002
Costs:
Costs to provide city services, excl utilities ($8,300,964) ($8,300,964)
Costs to provide city‐owned utilities ($15,560,760) ($15,560,760)
Total $32,541,701 ($23,861,724) $8,679,977
Present Value (5% discount rate) $22,403,516 ($15,445,800) $6,957,716
* Net of 100% property tax increment shareback with Downtown Development Authority.
The graph below depicts the costs, benefits and net benefits to the City of Fort Collins over the first 16 years.
($3,000,000)
($2,000,000)
($1,000,000)
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
12345678910111213141516
Year
Net Benefits Over the First 16 Years
Benefits Costs Net Benefits
Page 4
EXECUTIVE SUMMARY
Value of Project Blue Home
Project Blue Home considers the expansion of an existing manufacturer in Fort Collins. The firm is considering locations
outside of the city for possible relocation and expansion of its manufacturing and headquarters operations. The company
currently employs 700 workers in the city and supports real and personal property of $22.3 million. The firm's
current operations represent approximately $850,000 in net revenues to the City of Fort Collins annually. The new
construction and expansion would increase the company's impact on Fort Collins by approximately $8.68 million
over the next 16 years. In total, the value of Project Blue Home's current operation and expansion represents
approximately $22.55 million in net revenues to the City of Fort Collins over the next 16 years.
Project Blue Home Value to Fort Collins
Net Revenues for Fort Collins
Over 16 Years Average Annual Present Value*
Existing Operations $13,873,386 $867,087 $9,203,326
Construction and Expanded Operations $8,679,977 $542,499 $6,957,716
Total $22,553,363 $1,409,585 $16,161,042
* This analysis uses a 5% discount rate.
Therefore, the estimated value to Fort Collins if the manufacturer were to leave the city is a loss $22.55 million over the
next 16 years or a loss to the city of $1.4 million per year on average or $16.16 million in present value. More than 27%
($6.25 million) of the total net revenue is generated in the first two years as shown in the graph below.
While the above is a summary of the results of this analysis, details are on the following pages.
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
12345678910111213141516
Year
Net Revenues for the City of Fort Collins
Existing Operations Construction & Expansion
Page 5
PROJECT SUMMARY
Introduction
This report presents the results of an economic impact analysis performed by Impact DataSource, an Austin, Texas based
economic consulting, research and analysis firm. The report estimates the impact that a potential project in Fort Collins,
CO will have on the local economy. The report calculates the costs and benefits for specified local taxing districts during
the initial construction and over the first 16 years of operations. The 16‐year analysis coincides with the term of the TIF
arrangement.
City City of Fort Collins
County Larimer County
School District Poudre School District
TIF District Downtown Development Authority (DDA)
Description of the Project
Summary of the Economic Impact of the Project
The project will have the following economic impact on the City of Fort Collins area over the first 16 years:
Economic Impact Over the First 16 Years
Direct
Indirect &
Induced Total
Total number of permanent direct and indirect jobs to be created 700 700 1,400
Salaries to be paid to direct and indirect workers $977,827,961 $337,472,875 $1,315,300,836
Number of direct and indirect workers who will move to the City 28 14 42
Number of new residents in the City 69 35 104
Number of new residential properties to be built in the City 7 3 10
Number of new students expected to attend local school district 26 13 39
Taxable sales and purchases expected in the City $163,964,336 $38,629,530 $202,593,866
$1,670,200 $715,800 $2,386,000
The market value the firm's property in Year 1 $46,934,346 $0 $46,934,346
The year‐by‐year economic impacts can be found in Appendix B.
How this economic activity translates into additional costs and benefits for local taxing districts is summarized
next.
The market value of new residential property to be built for direct and indirect workers
who move to the City by Year 10
Project Blue Home represents a company that is considering locating a manufacturing and corporate headquarters in Fort
Collins, Colorado. The company plans to purchase a piece of land in the city and invest $169 million in new buildings and
equipment. The firm plans to initially purchase $50.5 million in equipment for the facility. It is understood that the
company will employ a total of 1,400 employees in Fort Collins. The company currently employs 700 employees in the city
and, with Project Blue Home, will expand employment in Fort Collins by 700 employees. The company will hire 185 new
positions in the city and relocate 515 workers that work at a different facility in the county. These employees will have
average compensation of $76,000. This analysis assumes that all of the 700 new jobs in Fort Collins will be employed in
the firm's manufacturing operations. The project will be located in the Downtown Development Authority (DDA). The
DDA will receive a 50% real property tax shareback from the County, PVH, Library and PSD. One‐hundred percent of the
City’s property tax will be allocated to the DDA.
Page 6
ANALYSIS OF FISCAL IMPACT
Costs and Benefits for Local Taxing Districts
The project will generate additional benefits and costs for local taxing districts. A summary of these additional
benefits, costs and net benefits is provided below. The source of specific benefits and costs are provided in
more detail for each taxing district on subsequent pages.
Net Benefits During Construction and Over the First 16 Years for Local Taxing Districts
Present
Additional Additional Net Value of
Benefits Costs Benefits Net Benefits*
City of Fort Collins $32,541,701 ($23,861,724) $8,679,977 $6,957,716
Larimer County $10,737,544 ($5,238,339) $5,499,205 $3,901,525
Poudre School District $14,693,242 ($2,960,433) $11,732,810 $8,057,743
Downtown Development Authority (DDA) $23,837,852 ($5,511,061) $18,326,791 $12,712,803
Total $81,810,339 ($37,571,556) $44,238,783 $31,629,788
*The Present Value of Net Benefits is a way of expressing in today's dollars, dollars to be paid or received in the future. Today's dollar and a
dollar to be received or paid at differing times in the future are not comparable because of the time value of money. The time value of money
is the interest rate or each taxing entity's discount rate. This analysis uses a discount rate of 5% to make the dollars comparable.
Note: The project will generate revenue for hospital/health, library, water and pest control districts, but because additional costs cannot be
determined, these taxing districts are not included in the analysis.
City of Fort Collins
20%
Larimer County
12%
Poudre School District
27%
Downtown
Development Authority
(DDA)
41%
Distribution of Net Benefits
Page 7
ANALYSIS OF FISCAL IMPACT
Benefits and Costs for City of Fort Collins
The table below displays the estimated additional benefits, costs and net benefits to be received by the city during
construction and over the first 16 years of the project. Appendix C contains the year‐by‐year calculations.
City of Fort Collins: Benefits, Costs & Net Benefits During Construction & Over First 16 Years
Additional Additional Net
Benefits Costs Benefits
Benefits:
Sales and Use Taxes after rebates $6,530,835 $6,530,835
Property Taxes on the Firm's Real Property* $0 $0
Property Taxes on the Firm's BP Property* $0 $0
Property Taxes on new Residential Property $27,911 $27,911
Capital Expansion Fees after rebates $3,194,183 $3,194,183
Building Permits and Fees $283,329 $283,329
Lodging Taxes $5,529 $5,529
Miscellaneous taxes and user fees collected from:
New Households $415,352 $415,352
New Businesses $5,136,560 $5,136,560
City‐owned Utility Revenue collected from:
New Households $1,266,677 $1,266,677
New Businesses $15,681,325 $15,681,325
Costs:
Costs to provide city services, excluding utilities, to:
New Households ($620,819) ($620,819)
New Businesses ($7,680,145) ($7,680,145)
Costs to provide city‐owned utilities to:
New Households ($1,163,575) ($1,163,575)
New Businesses ($14,397,185) ($14,397,185)
Total $32,541,701 ($23,861,724) $8,679,977
Present Value (5% discount rate) $22,403,516 ($15,445,800) $6,957,716
* Net of 100% property tax increment shareback with Downtown Development Authority.
The graph below depicts the costs, benefits and net benefits to the City of Fort Collins over the first 16 years.
($3,000,000)
($2,000,000)
($1,000,000)
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Year
Net Benefits for the City
Benefits Costs Net Benefits
Page 8
ANALYSIS OF FISCAL IMPACT
Benefits and Costs for Larimer County
The table below displays the estimated additional benefits, costs and net benefits to be received by the county during
construction and over the first 16 years of the project. Appendix C contains the year‐by‐year calculations.
Larimer County: Benefits, Costs & Net Benefits During Construction & Over First 16 Years
Additional Additional Net
Benefits Costs Benefits
Benefits:
Sales and Use Taxes $1,215,563 $1,215,563
Property Taxes on the Firm's Real Property* $3,652,888 $3,652,888
Property Taxes on the Firm's BP Property* $1,092,900 $1,092,900
Property Taxes on new Residential Property $64,157 $64,157
Miscellaneous taxes and user fees collected from:
New Households $291,630 $291,630
New Businesses $4,420,405 $4,420,405
Costs:
Costs to provide county services to:
New Households ($324,034) ($324,034)
New Businesses ($4,914,305) ($4,914,305)
Total $10,737,544 ($5,238,339) $5,499,205
Present Value (5% discount rate) $7,292,325 ($3,390,800) $3,901,525
Benefits and Costs for Poudre School District
The table below displays the estimated additional benefits, costs and net benefits to be received by the school
district over the first 16 years of the project. Appendix C contains the year‐by‐year calculations.
Poudre School District: Benefits, Costs and Net Benefits Over the First 16 Years
Additional Additional Net
Benefits Costs Benefits
Benefits:
Property Taxes on the Firm's Real Property* $8,870,419 $8,870,419
Property Taxes on the Firm's BP Property* $2,653,923 $2,653,923
Property Taxes on new Residential Property $155,794 $155,794
Additional State and Federal Funding $3,013,106 $3,013,106
Costs:
Costs to educate new students ($2,960,433) ($2,960,433)
Total $14,693,242 ($2,960,433) $11,732,810
Present Value (5% discount rate) $9,957,132 ($1,899,389) $8,057,743
* Net of 50% property tax increment shareback with Downtown Development Authority.
Page 9
ANALYSIS OF FISCAL IMPACT
Benefits and Costs for Downtown Development Authority (DDA)
The table below displays the estimated additional benefits, costs and net benefits to be received by the Downtown
Development Authority district over the first 16 years of the project. Appendix C contains the year‐by‐year calculations.
DDA: Benefits, Costs and Net Benefits Over the First 16 Years
Additional Additional Net
Benefits Costs Benefits
Benefits:
Property Taxes on the Firm's Real Property $1,622,064 $1,622,064
Property Taxes on the Firm's BP Property $485,302 $485,302
DDA Real Prop. Tax Increment Shareback Rev. $16,726,584 $16,726,584
DDA BPP Tax Increment Shareback Revenue $5,003,902 $5,003,902
Costs:
DDA Costs ($5,511,061) ($5,511,061)
Total $23,837,852 ($5,511,061) $18,326,791
Present Value (5% discount rate) $16,384,960 ($3,672,156) $12,712,803
* Property tax increment shareback revenue includes 100% of the city's property increment tax revenue
and 50% of the other taxing districts property increment tax revenue
Page 10
SUMMARY OF INCENTIVES
Summary of Possible Incentives for the Project from the City
The city is evaluating the following of incentives for the project:
Use Tax Rebates
Construction Use Tax Rebate
City Proposed*
Construction Estimated Spend $169,100,000
Factor 50.0%
Eligible Amount $84,550,000
Use Tax Due (3.85%) $3,255,175
Rebate Percent 80%
Construction Use Rebate Amount $2,604,140
Equipment Use Tax Rebate
City Proposed*
Equipment Estimated Spend $50,500,000
Factor 95%
Eligible Amount $47,975,000
Use Tax Due (3.00%) $1,439,250
Rebate Percent 80%
Equipment Use Rebate Amount $1,151,400
Capital Expansion Fee Rebate
City Proposed*
Capital Expansion Fees Incurred $6,388,366
Rebate Percent 50%
Capital Expansion Fee Rebate Amount $3,194,183
Total Tax Rebate Amounts
City Proposed*
Construction Use Rebate Amount $2,604,140
Equipment Use Rebate Amount $1,151,400
Capital Expansion Fee Rebate Amount $3,194,183
Total Use and Fee Rebate Amount $6,949,723
* City Proposed Use Tax Rebates assume 100% rebate of the 2.25% General Fund Use Tax Rate.
In total, the city is considering $6.9 million in tax and fee rebates related to the project. The sales tax collections and
capital expansion fees and resulting net benefits for the City of Fort Collins shown earlier in this report reflect the
revenues to be received by the city after rebating the $6.9 million in taxes and fees detailed in the table above.
Page 11
METHODOLOGY
Conduct of the Analysis
This analysis was conducted by Impact DataSource using estimates provided to the City of Fort Collins by the firm, local
rates and information and assumptions by Impact DataSource.
Using this data, the economic impact from the project and the costs and benefits for relevant taxing districts
were calculated for a 16‐year period
Discussion of Economic Impact Calculations
The economic impact as calculated in this report can be categorized into two main types of impacts.
1. Direct economic impacts are the immediate economic activities generated by the firm or project.
These impacts include the employment at the firm and salaries paid to the firm's workers as well
as expenditures made by the firm.
2. Indirect and induced economic impacts represent the additional economic activity that is supported
by the firm or project. Indirect jobs and salaries are created in new or existing area firms, such as
maintenance companies and service firms that may supply goods and services to the firm. In
addition, induced jobs and salaries are created in new or existing local businesses, such as retail
stores, gas stations, banks, restaurants, and service companies that may supply goods and services
to new workers and their families.
Note: This report labels the combined indirect and induced impacts as simply "Indirect".
To estimate the indirect and induced economic impact of the firm and its employees on the area, regional
economic multipliers were used. This economic analysis utilized economic impact multipliers obtained an input/output
model produced by from Economic Modeling Specialists Inc. (EMSI). The EMSI multipliers used in this analysis are specific
to Larimer County and the Commercial and Institutional Building Construction (NAICS 236220) industry, Turbine and
Turbine Generator Set Units Manufacturing (NAICS 333611) industry and the Corporate, Subsidiary, and Regional
Managing Offices (NAICS 551114) industry.
Two types of regional economic multipliers were used in this analysis: an employment multiplier and an
earnings multiplier. An employment multiplier was used to estimate the number of indirect and induced jobs
created and supported in the area. An earnings multiplier was used to estimate the amount of salaries
to be paid to workers in these new indirect and induced jobs. The multipliers show the estimated number of
indirect and induced jobs created for every one direct job at the firm and the amount of salaries paid to
these workers for every dollar paid to a direct worker at the firm. The multipliers used in this analysis are
listed below:
Headquarters Manufacturing
Construction Operations Operations
Earnings multiplier 0.34 0.31 0.77
Employment multiplier 0.64 0.75 2.23
Discussion of Fiscal Impact Calculations
Calculation of Revenues for the City:
The city's revenues from sales, property lodging taxes were calculated directly using data that the firm provided and
assumptions about taxable construction spending and worker spending.
Property taxes were calculated on the new residential property for some new direct and indirect workers who
may move to the county and on the firm's property that will be added to local tax rolls.
Page 12
METHODOLOGY
Lodging taxes were also calculated on lodging sales, in local hotels/motels, to out‐of‐town visitors to the firm.
Sales taxes were calculated on the taxable spending in the area by direct and indirect workers, the spending
of out‐of‐town visitors to the firm, and on the firm's taxable sales and purchases of supplies, materials and
services in the area.
The firm was not asked for nor could reasonably provide some data for calculating some other revenues for the
city. For example, while the city will likely receive revenues from fines paid on speeding tickets given
to new workers at the firm, the firm may not reasonably know the propensity of its workers to speed.
Therefore, some other city revenues were calculated using an average revenue approach. This approach uses
two assumptions:
1 ‐ The city has two general revenue sources ‐‐ revenues from residents and revenues from businesses.
2 ‐ The city will collect (a) about the same amount of other revenues from each household of new workers
that may move to the city as it currently collects from an average household of existing residents, and
(b) about the same amount of other revenues from the new firm (on a per worker basis) will be collected
as the city collects from other businesses in the city.
Using this average revenue approach, revenues likely to be received by the city were calculated from the
households of new workers who may move to the city and from the new firm using average city revenues
per worker calculations.
Utility revenues collected from new residents and new businesses were also calculated using the average revenue
approach as shown in Appendix A.
The total annual city revenues used to make average revenue calculations in this analysis were obtained
from the city's latest comprehensive annual financial report.
Calculation of Costs for the City:
This analysis sought to answer the question, what additional monies will the city have to spend to provide
services to households of new workers who may move to the city and to the firm. A marginal cost approach
was used to calculate additional city costs from the new firm and its workers.
This approach uses two assumptions:
1 ‐ The city spends money on services for two general groups ‐‐ residents and businesses.
2 ‐ The city will spend (a) about the same amount for variable or marginal cost for each household
of new workers that may move to the city as it currently spends for an average household of existing
residents, and (b) about the same amount for variable or marginal costs for the new firm (on a per worker
basis) as it spends for other businesses in the city.
The detailed assumptions to estimate the marginal cost per household and per worker are provided in Appendix A.
The cost to provide city‐owned utility services to new residents and new businesses were calculated using the average
cost approach as shown in Appendix A.
Page 13
METHODOLOGY
Calculation of Net Benefits for the City:
Net benefits calculated in this analysis are the difference between additional city revenues over a 16‐year
period and additional city costs to provide services to the new firm and its workers and indirect workers who
may move to the city.
Calculation of Revenues for the County:
The county's revenues from sales and property taxes were calculated directly using data that the firm provided.
Property taxes were calculated on the new residential property for some new direct and indirect workers who
may move to the county and on the firm's property that will be added to local tax rolls.
Sales taxes were calculated on the taxable spending in the area by direct and indirect workers, the spending
of out‐of‐town visitors to the firm, and on the firm's taxable sales and purchases of supplies, materials and
services in the area.
Also, the model estimates other additional revenue to be received by the county from new residents and new
businesses. An average revenue approach is used in the same way additional county revenues were calculated.
Calculation of Costs for the County:
The model estimates additional costs to provide services to new residents and businesses using a parallel
methodology used for the city.
Calculation of Net Benefits for the County:
Net benefits calculated in this analysis are the difference between additional county revenues over a 16‐year
period and additional county costs to provide services to the new firm and its workers and indirect workers who
may move to the county.
Calculation of Revenues for Public Schools:
The school district's revenues from property taxes were calculated on the new residential property for some
new direct and indirect workers who may move to the county and on the firm's property that will be added to
local tax rolls.
School district revenues from state and federal funds and other local funding were calculated using an average
revenue approach. This approach used the assumption that the school district will collect about the same amount
of these revenues for each new student in the household of a new worker who may move to the county as it
currently collects for each existing student.
Calculation of Costs for Public Schools:
A marginal cost approach was used to calculate additional school district costs from the new firm and its workers.
This approach uses the assumption that the school district will spend about the same amount for variable or
marginal cost for each new student as it spends for each existing student.
Calculation of Net Benefits for Public Schools:
Net benefits calculated in this analysis are the difference between additional school district revenues over a
16‐year period and marginal costs for the school district to provide services to students in the households of
new workers who may move to the county.
The school district's total annual revenues and expenses to make average revenue and marginal costs calculations
in this analysis were obtained from the school district's latest annual budget.
Page 14
METHODOLOGY
Calculation of Revenues for the Downtown Development Authority
Revenues for the Downtown Development Authority are based on the data provided by the organization. In addition, the
costs for the DDA are also based on data provided by the organization.
Special Taxing Districts
The hospital/health district and other local property taxing districts will receive additional property tax revenue as a result
of the project. In addition these special taxing districts may incur additional costs from new residents and from the new
firm. The project will generate revenue for hospital/health, library, water and pest control districts, but because additional
costs cannot be determined, these taxing districts are not included in the analysis.
About Impact DataSource
Impact DataSource is a 19‐year‐old Austin, Texas economic consulting, research and analysis firm. The company has
conducted over 2,500 economic impact analyses of firms, projects and activities in most industry groups throughout
the U.S.
In addition, Impact DataSource has prepared and customized over 50 economic impact models for its clients to
perform their own analyses of economic development projects. These clients include the New Mexico Economic
Development and the Metro Orlando (Florida) Economic Development Commission.
The New Mexico Department of Economic Development uses Impact DataSource's computer model to project the
economic impact of new or expanding firms in the state and costs and benefits for the State of New Mexico and
each local taxing district. The model also calculates the amount of eligible state and local incentives and calculates
a rate of return and payback period for these incentives.
Impact DataSource's team includes the following members:
‐ Jerry Walker, principal/economist, and
‐ Paul Scheuren, principal/economist.
Jerry Walker is an economist and Impact DataSource's Principal. Over the past seventeen years, he has conducted
economic and fiscal impact analyses and cost‐benefit studies of a variety of firms, facilities, projects and activities.
He has also developed several economic impact analysis computer programs for clients to do their own economic
impact analyses of firms, projects, activities and organizations.
He also has a background in government accounting and auditing. Prior to his economic consulting career, he
had a fifteen‐year career as a supervisory auditor with two federal departments – the U.S. Department of
Education and the U.S. Department of Health and Human Services. He reviewed federal programs operated by
states, local governments, colleges and universities, local education agencies, and nonprofit organizations in a
six state area from Austin, Texas. He performed financial audits and operational reviews. During the operational
reviews, the operations of the federal programs were reviewed for economy, efficiency and effectiveness. The
financial audits included analyzing costs incurred for federal programs and components of indirect cost rates.
He has also served as a part‐time accounting instructor at Austin Community College, Austin, Texas.
Jerry has Bachelor of Science and Master of Business Administration degrees in accounting and economics from
Nicholls State University, Thibodaux, Louisiana.
Paul Scheuren is an Impact DataSource economist. Over the past three years, he has conducted economic and
fiscal impact analyses and cost‐benefit studies of a variety of firms, facilities, projects and activities. Recently,
Paul analyzed more than 30 renewable energy projects funded by the Iowa Power Fund, Iowa's energy‐related
economic development fund.
Page 15
METHODOLOGY
Prior to joining Impact DataSource, Paul worked as a compensation analyst at the Texas Association of School
Boards where he supported compensation consulting projects and helped streamline data analysis for a
statewide salary survey.
Paul has a Master of Arts in Economics from Clemson University as well as a Bachelor of Business Administration
in actuarial science from Temple University.
Data used in the analysis, along with schedules of the results of calculations, are on the following pages.
Page 16
Appendix A
Data and Rates
Page 17
APPENDIX A
Local Tax Rates:
Sales tax rates:
City of Fort Collins Taxable goods 3.85%
Mfg equipment eligible for use tax rebate 3.00%
Food consumed at home 2.25%
Larimer County 0.60%
Property tax rates, per $1,000 of assessment:
City of Fort Collins 9.797
Larimer County 22.520
Poudre School District 54.686
Hospital/Health Services 2.167
Other (Water, Library, etc) 4.142
Downtown Development Authority 5.000
City lodging tax rate (in addition to sale tax): 3.00%
Relevant City Rates:
Miscellaneous Primary Government Revenue collected from households and businesses:
Revenue and Expenditures from Fort Collins 2011 Comprehensive Annual Financial Report, Page 28
Primary Government Revenues In Thousands
Charges for services $186,129
Operating grants and contributions $13,843
Capital grants and contributions $26,445
Sales and use taxes $97,589
Property taxes $17,742
Occupational taxes $2,433
Lodging taxes $909
Intergovernmental not restricted to programs $10,274
Investment earnings $5,520
Miscellaneous $2,517
Total Revenues $363,401
Primary Government Revenue Sources Estimated in the Model In Thousands
Sales and use taxes $97,589
Property taxes $17,742
Lodging taxes $909
Total $116,240
Page 18
APPENDIX A
Primary Government Revenues Excluded from Miscellaneous Revenue Calcluation
In Thousands
Charges for Services
Power and Light $100,814
Water $24,308
Wastewater $19,149
Operating grants and contributions (exclude 100%) $13,843
Capital grants and contributions (exclude 100%) $26,445
Intergovernmental not restricted to programs $10,274
Investment earnings $5,520
Total $200,353
Miscellaneous Primary Government Revenue collected from households and businesses
In Thousands
Total Revenues $363,401
Less Sources estimated direct in Model ($116,240)
Less Excluded Revenues ($200,353)
Miscellaneous Revenue $46,808
Includes Primary Government Revenues not estimated in the model or excluded from
from Miscellaneous Revenue Calculation
City financial data and Impact DataSource calculations.
Percent of miscellaneous revenues and fees collected from:
Households 70%
Businesses 30%
Impact DataSource assumption.
Number of households and workers in Fort Collins:
Households 58,111
Workers 67,449
U.S. Census 2011 American Community Survey (Households), U.S. Census OnTheMap 2010 (All Workers)
Estimated miscellaneous revenues to be received from households per new $564
worker household moving to the city
Impact DataSource calculation based on above city data and assumptions.
Estimated miscellaneous revenues to be received from businesses per new $208
worker in the city
Impact DataSource calculation based on above city data and assumptions.
Page 19
APPENDIX A
Marginal Government Expenses imposed on the city by new households and businesses:
Primary Government Expenses In Thousands Fixed Variable
General Government $33,674 80% 20%
Public Safety $51,313 60% 40%
Cultural parks, recreation and environment $29,755 60% 40%
Planning and development $11,053 60% 40%
Transportation $38,540 60% 40%
Interest on long‐term debt $2,523 100% 0%
Storm drainage $8,407 0% 100%
Golf $2,547 0% 100%
Total Expenses $177,812
Total Marginal Costs $69,953
Impact DataSource calculation based on fixed/variable split for government expenses as determined through work with
similar communities. Local expenditure data used in this analysis according to the city's 2011 CAFR.
Percent of marginal costs attributable to:
Households 70%
Businesses 30%
Impact DataSource assumption.
Estimated marginal city costs attributable to households per new worker $843
household moving to the city
Impact DataSource calculation based on above city data and assumptions.
Estimated marginal city costs attributable to businesses per new worker in the city $311
Impact DataSource calculation based on above city data and assumptions.
City‐owned Utility Revenue Collected from new residents and businesses:
City‐Owned Utility Revenues In Thousands
Power and Light $99,657
Water $24,101
Wastewater $19,020
Total City‐Owned Utility Revenues $142,777
Estimated cost per new household to provide city‐owned $1,720
utilities to new households
Impact DataSource calculation based on above city data and assumptions.
Estimated cost per new worker to provide city‐owned $635
utilities to new businesses
Impact DataSource calculation based on above city data and assumptions.
Page 20
APPENDIX A
Costs to provide City‐owned Utilities to new residents and businesses:
City‐Owned Utility Expenses In Thousands
Power and Light $97,057
Water $19,941
Wastewater $14,163
Total City‐Owned Utility Expenses $131,161
Estimated cost per new household to provide city‐owned $1,580
utilities to new households
Impact DataSource calculation based on above city data and assumptions.
Estimated cost per new worker to provide city‐owned $583
utilities to new businesses
Impact DataSource calculation based on above city data and assumptions.
Rate of annual increase in the above expenditures and other revenue: 2%
Impact DataSource assumption.
Relevant County Rates:
Miscellaneous Primary Government Revenue collected from households and businesses:
Revenue and Expenditures from Larimer 2011 Comprehensive Annual Financial Report, Page 26
Primary Government Revenues In Millions
Charges for services $43.63
Operating grants and contributions $55.64
Capital grants and contributions $2.13
Property taxes $91.22
Sales and use taxes $31.95
Other Taxes $5.50
Other Revenues $5.36
Total Revenues $235.43
Primary Government Revenue Sources Estimated in the Model In Millions
Property taxes $91.22
Sales and use taxes $31.95
Total $123.17
Page 21
APPENDIX A
Primary Government Revenues Excluded from Miscellaneous Revenue Calcluation
In Millions
Operating grants and contributions (75%) $41.73
Capital grants and contributions (75%) $1.60
Total $43.33
Miscellaneous Primary Government Revenue collected from households and businesses
In Millions
Total Revenues $235.43
Less Sources estimated direct in Model ($123.17)
Less Excluded Revenues ($43.33)
Miscellaneous Revenue $68.93
Includes Primary Government Revenues not estimated in the model or excluded from
from Miscellaneous Revenue Calculation
County financial data and Impact DataSource calculations.
Percent of miscellaneous revenues and fees collected from:
Households 70%
Businesses 30%
Impact DataSource assumption.
Number of households and workers in Larimer County:
Households 121,911
Workers 115,819
U.S. Census 2011 American Community Survey (Households), U.S. Census OnTheMap 2010 (All Workers)
Estimated miscellaneous revenues to be received from households per new $396
worker household moving to the county
Impact DataSource calculation based on above county data and assumptions.
Estimated miscellaneous revenues to be received from businesses per new $179
worker in the county
Impact DataSource calculation based on above county data and assumptions.
Marginal Government Expenses imposed on the county by new households and businesses:
Primary Government Expenses In Millions Fixed Variable
General Government $33.88 80% 20%
Judicial and Public Safety $63.13 60% 40%
Streets and highways $25.42 60% 40%
Recreation $16.65 60% 40%
Health and Human Services $56.49 60% 40%
Interest on long‐term debt $2.63 100% 0%
Solid Waste $5.25 0% 100%
Total Expenses $203.45
Total Marginal Costs $76.70
Impact DataSource calculation based on fixed/variable split for government expenses as determined through work with
similar communities. Local expenditure data used in this analysis according to the county's 2011 CAFR.
Page 22
APPENDIX A
Percent of marginal costs attributable to:
Households 70%
Businesses 30%
Impact DataSource assumption.
Estimated marginal county costs attributable to households per new worker $440
household moving to the county
Impact DataSource calculation based on above county data and assumptions.
Estimated marginal county costs attributable to businesses per new worker $199
in the county
Impact DataSource calculation based on above county data and assumptions.
Rate of annual increase in the above expenditures and other revenue: 2%
Impact DataSource assumption.
Relevant School District Rates:
The school district’s estimated marginal cost of providing services to each $3,896
new child in the district
Impact DataSource calculation based on values below.
Average annual cost of providing services to each child in the district $7,793
2013 Budget Poudre School District General Fund ‐ Estimated values for 2011‐12
Average annual cost for each new child, as a percent of average annual cost 50%
Impact DataSource assumption.
Estimated annual state, federal and other funding received by the district $3,966
for each child enrolled
2013 Budget Poudre School District General Fund ‐ Estimated values for 2011‐12
Relevant Community Rates:
Expected inflation rate over the first 16 years 3.0%
Impact DataSource assumption.
Discount rate used in analysis to compute discounted cash flows 5.0%
Impact DataSource assumption.
Percent of the gross salaries a typical worker spent on taxable goods and services 27%
Impact DataSource calculation from U.S. Bureau of Labor Statistics, Consumer Expenditure Survey
Percent of the gross salaries a typical worker spent on taxable food consumed at home 6%
Impact DataSource calculation from U.S. Bureau of Labor Statistics, Consumer Expenditure Survey
Page 23
APPENDIX A
Property tax asssessment rates:
Nonresidential assessment rate 29.00%
Residential assessment rate 7.96%
Median value of a new residential property constructed in the city $238,600
U.S. Census American Community Survey 2011 Fort Collins, CO
Percent annual increase in the taxable value of residential and commercial 0.0%
real property on local tax rolls over the first 16 years
Impact DataSource assumption.
Depreciation rates:
To estimate the annual taxable or depreciable value of furniture, fixtures and equipment owned by the firm,
this analysis uses the following depreciation schedule. Therefore, property taxes on the firm's furniture, fixtures
and equipment are calculated on the following percentages of the costs of such equipment purchased each year:
Year 1 100%
Year 2 90%
Year 3 80%
Year 4 70%
Year 5 60%
Year 6 50%
Year 7 40%
Year 8 30%
Year 9 20%
Year 10 20%
Impact DataSource assumption.
The Firm's Investments, Assets and Construction:
The market value of investments at the firm's facility each year:
Buildings and Furniture,
Other Real Fixtures,
Property and
Land Improvements Equipment Total
Year 1 $0 $39,978,621 $6,955,725 $46,934,346
Year 2 $0 $31,933,793 $43,544,275 $75,478,068
Year 3 $0$0$0$0
Year 4 $0$0$0$0
Year 5 $0$0$0$0
Year 6 $0$0$0$0
Year 7 $0$0$0$0
Year 8 $0$0$0$0
Year 9 $0$0$0$0
Year 10 $0 $0 $0 $0
Total $0 $71,912,414 $50,500,000 $122,412,414
Building and Other Real Property Improvement value was deduced based on the Downtown Development Authority's
estimated tax collections. The value of FFE is based $50.5 million in equipment phased in over two years.
Page 24
APPENDIX A
Spending During Construction:
Estimated spending for construction and capital expansion fees (if applicable):
Construction Capital
Spending Expansion Fees
Year 1 $126,825,000 Year 1 $6,388,366
Year 2 $42,275,000 Year 2$0
Year 3$0 Year 3$0
Year 4$0 Year 4$0
Year 5$0 Year 5$0
Year 6$0 Year 6$0
Year 7$0 Year 7$0
Year 8$0 Year 8$0
Year 9$0 Year 9$0
Year 10 $0 Year 10 $0
Percent of construction costs for:
Materials 50%
Labor 50%
Estimated percent of construction materials that will be subject to the city's use tax 100%
Percent of taxable spending by construction workers that will be in the city 0%
Percent of furniture, fixtures and equipment to be subject to 3% use tax rate: 95%
Expected city building permits and plan check fees to be paid during construction, if applicable:
Plan Check Total Permits
Permit Fees Fees and Fees
Year 1 $191,247 $92,082 $283,329
Year 2 $0$0$0
Year 3 $0$0$0
Year 4 $0$0$0
Year 5 $0$0$0
Year 6 $0$0$0
Year 7 $0$0$0
Year 8 $0$0$0
Year 9 $0$0$0
Year 10 $0 $0 $0
The above fees were estimated using the city's Building‐Combination Estimate of Fees web application. The estimate is
based on construction with a $125 million valuation with subcontractors.
http://www.fcgov.com/building/fees.php
Page 25
APPENDIX A
Activities During the Firm's Operations:
The firm's estimated taxable purchases of materials, supplies and services in the community and the
firm's estimated taxable sales that will be subject to sales tax in the city
Taxable Taxable
Purchases Sales
Year 1 $347,786 $0
Year 2 $2,177,214 $0
Year 3$0 $0
Year 4$0 $0
Year 5$0 $0
Year 6$0 $0
Year 7$0 $0
Year 8$0 $0
Year 9$0 $0
Year 10 $0 $0
New employees in Fort Collins each year:
New New Total
Headquarters Manufacturing New Employees
Employees Employees added
added each year each year each year*
Year 1 000
Year 2 0 700 700
Year 3 000
Year 4 000
Year 5 000
Year 6 000
Year 7 000
Year 8 000
Year 9 000
Year 10000
Total 0 700 700
* Of the 700 new jobs to Fort Collins, 515 employees will be relocating
from nearby and 185 will be new hires by the firm.
Number of new workers who will move to the city to take job at the firm:
Estimated percent of the 185 newly hired employees moving to the city 15.0%
Number of new
employees moving
to the city
Year 10
Year 228
Year 30
Year 40
Year 50
Year 60
Year 70
Year 80
Year 90
Year 10 0
Total 28
Page 26
APPENDIX A
Average annual salaries of new employees in the first year $76,000
Percent of expected increase in employee salaries after Year 12.5%
Multipliers for calculating the number of indirect and induced jobs and earnings in the area during operations:
Headquarters Manufacturing
Earnings 0.3100 0.7700
Employment 0.7500 2.2310
This cost‐benefit analysis uses the above multipliers to project the indirect and induced benefits
in the community as a result of the direct economic activity. The employment multiplier shows
the number of spin‐off jobs that will be created from each direct job. Similarly, the earnings
multiplier estimates the salaries and wages to be paid to workers in these spin‐off jobs for
each $1 paid to direct workers.
Percent of workers in new indirect and induced jobs that will move 2%
to the city for the job
Estimated percentage of workers moving to the city that will have new 25%
residential property built for them the first year that they move to the city
Household size of a typical new worker moving to the city: 2.50
Number of school children in a typical worker's household 0.95
Percent of taxable shopping by a typical new worker that will 55%
be in the city
Visitors to the Firm from Out‐of‐Town:
Number of out‐of‐town visitor days resulting from the project:
Includes vendors, customer audits and visiting corporate employees.
Visitors
Year 1 100
Year 2 150
Year 3 200
Year 4 200
Year 5 200
Year 6 200
Percent of annual increase in the number of visitors after year 60%
Average daily taxable visitor spending, excluding lodging in the city $35
Percent of visitor days that will result in a night in a hotel/motel in the city 50%
Average nightly room rate in a local motel $95
Page 27
Appendix B
Economic Impact Calculations
Page 28
APPENDIX B
Number of local jobs added each year and worker salaries to be paid: Headquarters
Direct Indirect Total Direct Indirect Total
Year Jobs Jobs Jobs Salaries Salaries Salaries
1 0 0 0 $0 $0 $0
2 0 0 0 $0 $0 $0
3 0 0 0 $0 $0 $0
4 0 0 0 $0 $0 $0
5 0 0 0 $0 $0 $0
6 0 0 0 $0 $0 $0
7 0 0 0 $0 $0 $0
8 0 0 0 $0 $0 $0
9 0 0 0 $0 $0 $0
10000$0$0$0
11000$0$0$0
12000$0$0$0
13000$0$0$0
14000$0$0$0
15000$0$0$0
16000$0$0$0
Total 0 0 0 $0 $0 $0
Number of local jobs added each year and worker salaries to be paid: Manufacturing
Direct Indirect Total Direct Indirect Total
Year Jobs Jobs Jobs Salaries Salaries Salaries
1 0 0 0 $0 $0 $0
2 700 700 1,400 $54,530,000 $18,819,666 $73,349,666
3 0 0 0 $55,893,250 $19,290,158 $75,183,408
4 0 0 0 $57,290,581 $19,772,412 $77,062,993
5 0 0 0 $58,722,846 $20,266,722 $78,989,568
6 0 0 0 $60,190,917 $20,773,390 $80,964,307
7 0 0 0 $61,695,690 $21,292,725 $82,988,415
8 0 0 0 $63,238,082 $21,825,043 $85,063,125
9 0 0 0 $64,819,034 $22,370,669 $87,189,703
10 0 0 0 $66,439,510 $22,929,936 $89,369,446
11 0 0 0 $68,100,498 $23,503,184 $91,603,682
12 0 0 0 $69,803,010 $24,090,764 $93,893,774
13 0 0 0 $71,548,085 $24,693,033 $96,241,118
14 0 0 0 $73,336,788 $25,310,359 $98,647,146
15 0 0 0 $75,170,207 $25,943,118 $101,113,325
16 0 0 0 $77,049,462 $26,591,696 $103,641,158
Total 700 700 1,400 $977,827,961 $337,472,875 $1,315,300,836
Page 29
APPENDIX B
Number of local jobs added each year and worker salaries to be paid: Headquarters & Manufacturing
Direct Indirect Total Direct Indirect Total
Year Jobs Jobs Jobs Salaries Salaries Salaries
1 0 0 0 $0 $0 $0
2 700 700 1,400 $54,530,000 $18,819,666 $73,349,666
3 0 0 0 $55,893,250 $19,290,158 $75,183,408
4 0 0 0 $57,290,581 $19,772,412 $77,062,993
5 0 0 0 $58,722,846 $20,266,722 $78,989,568
6 0 0 0 $60,190,917 $20,773,390 $80,964,307
7 0 0 0 $61,695,690 $21,292,725 $82,988,415
8 0 0 0 $63,238,082 $21,825,043 $85,063,125
9 0 0 0 $64,819,034 $22,370,669 $87,189,703
10 0 0 0 $66,439,510 $22,929,936 $89,369,446
11 0 0 0 $68,100,498 $23,503,184 $91,603,682
12 0 0 0 $69,803,010 $24,090,764 $93,893,774
13 0 0 0 $71,548,085 $24,693,033 $96,241,118
14 0 0 0 $73,336,788 $25,310,359 $98,647,146
15 0 0 0 $75,170,207 $25,943,118 $101,113,325
16 0 0 0 $77,049,462 $26,591,696 $103,641,158
Total 700 700 1,400 $977,827,961 $337,472,875 $1,315,300,836
Number of direct and indirect workers and their families who will move
to the area and their children who will attend local public schools:
New Workers Total Total
Moving to New New
Year the Area Residents Students
10 0 0
2 42 104 40
30 0 0
40 0 0
50 0 0
60 0 0
70 0 0
80 0 0
90 0 0
10 0 0 0
11 0 0 0
12 0 0 0
13 0 0 0
14 0 0 0
15 0 0 0
16 0 0 0
Total 42 104 40
Page 30
APPENDIX B
Number of new residential properties that may be built in the city for direct and indirect workers
who will move to the community:
Total New
Residential
Year Properties
10
210
30
40
50
60
70
80
90
10 0
11 0
12 0
13 0
14 0
15 0
16 0
Total 10
Page 31
APPENDIX B
Local taxable spending on which sales taxes will be collected:
Direct and
Taxable Indirect Taxable Taxable
Construction Workers' Visitors' Sales by Purchases by
Year Spending Spending* Spending the Firm the Firm Total
1 $63,412,500 $0 $8,250 $0 $347,786 $63,768,536
2 $21,137,500 $6,424,228 $12,746 $0 $2,177,214 $29,751,688
3 $0 $6,584,833 $17,505 $0 $0 $6,602,338
4 $0 $6,749,454 $18,030 $0 $0 $6,767,484
5 $0 $6,918,190 $18,571 $0 $0 $6,936,761
6 $0 $7,091,145 $19,128 $0 $0 $7,110,273
7 $0 $7,268,424 $19,702 $0 $0 $7,288,126
8 $0 $7,450,134 $20,293 $0 $0 $7,470,427
9 $0 $7,636,388 $20,902 $0 $0 $7,657,289
10 $0 $7,827,297 $21,529 $0 $0 $7,848,826
11 $0 $8,022,980 $22,175 $0 $0 $8,045,154
12 $0 $8,223,554 $22,840 $0 $0 $8,246,394
13 $0 $8,429,143 $23,525 $0 $0 $8,452,668
14 $0 $8,639,872 $24,231 $0 $0 $8,664,103
15 $0 $8,855,869 $24,958 $0 $0 $8,880,826
16 $0 $9,077,265 $25,706 $0 $0 $9,102,972
Total $84,550,000 $115,198,776 $320,090 $0 $2,525,000 $202,593,866
* Spending includes only expenditures on items subject to general sales tax.
Manufacturing purchases subject to use tax and local taxable spending by direct and indirect workers
on food consumed at home:
Spending on
Rebateable Food
Manufacturing Manufacturing Consumed
Year Purchases Purchases at home
1 $6,607,939 $6,607,939 $0
2 $41,367,061 $41,367,061 $2,595,647
3 $0 $0 $2,660,539
4 $0 $0 $2,727,052
5 $0 $0 $2,795,228
6 $0 $0 $2,865,109
7 $0 $0 $2,936,737
8 $0 $0 $3,010,155
9 $0 $0 $3,085,409
10 $0 $0 $3,162,544
11 $0 $0 $3,241,608
12 $0 $0 $3,322,648
13 $0 $0 $3,405,714
14 $0 $0 $3,490,857
15 $0 $0 $3,578,129
16 $0 $0 $3,667,582
Total $47,975,000 $47,975,000 $46,544,960
Page 32
APPENDIX B
Local spending by visitors on lodging by out‐of‐town visitors:
Spending
Year on Lodging
1 $4,750
2 $7,339
3 $10,079
4 $10,381
5 $10,692
6 $11,013
7 $11,343
8 $11,684
9 $12,034
10 $12,395
11 $12,767
12 $13,150
13 $13,545
14 $13,951
15 $14,370
16 $14,801
Total $184,294
Page 33
APPENDIX B
Market value of new residential property built for direct and indirect workers who move to the
community and the market value of the firm's property:
Value of Value of Firm's
Firm's Business
New Real Personal Total
Residential Property Property Taxable
Year Property Tax Rolls Tax Rolls Property
1 $0 $39,978,621 $6,955,725 $46,934,346
2 $2,386,000 $71,912,414 $49,804,428 $124,102,842
3 $2,386,000 $71,912,414 $44,754,428 $119,052,842
4 $2,386,000 $71,912,414 $39,704,428 $114,002,842
5 $2,386,000 $71,912,414 $34,654,428 $108,952,842
6 $2,386,000 $71,912,414 $29,604,428 $103,902,842
7 $2,386,000 $71,912,414 $24,554,428 $98,852,842
8 $2,386,000 $71,912,414 $19,504,428 $93,802,842
9 $2,386,000 $71,912,414 $14,454,428 $88,752,842
10 $2,386,000 $71,912,414 $10,100,000 $84,398,414
11 $2,386,000 $71,912,414 $10,100,000 $84,398,414
12 $2,386,000 $71,912,414 $10,100,000 $84,398,414
13 $2,386,000 $71,912,414 $10,100,000 $84,398,414
14 $2,386,000 $71,912,414 $10,100,000 $84,398,414
15 $2,386,000 $71,912,414 $10,100,000 $84,398,414
16 $2,386,000 $71,912,414 $10,100,000 $84,398,414
Assessed value of new residential property built for direct and indirect workers who move to the
community and the assessed value of the firm's property:
Value of Value of Firm's
Firm's Business
New Real Personal Total
Residential Property Property Taxable
Year Property Tax Rolls Tax Rolls Property
1 $0 $11,593,800 $2,017,160 $13,610,960
2 $189,926 $20,854,600 $14,443,284 $35,487,810
3 $189,926 $20,854,600 $12,978,784 $34,023,310
4 $189,926 $20,854,600 $11,514,284 $32,558,810
5 $189,926 $20,854,600 $10,049,784 $31,094,310
6 $189,926 $20,854,600 $8,585,284 $29,629,810
7 $189,926 $20,854,600 $7,120,784 $28,165,310
8 $189,926 $20,854,600 $5,656,284 $26,700,810
9 $189,926 $20,854,600 $4,191,784 $25,236,310
10 $189,926 $20,854,600 $2,929,000 $23,973,526
11 $189,926 $20,854,600 $2,929,000 $23,973,526
12 $189,926 $20,854,600 $2,929,000 $23,973,526
13 $189,926 $20,854,600 $2,929,000 $23,973,526
14 $189,926 $20,854,600 $2,929,000 $23,973,526
15 $189,926 $20,854,600 $2,929,000 $23,973,526
16 $189,926 $20,854,600 $2,929,000 $23,973,526
Page 34
Appendix C
Cost and Benefit Calculations
Page 35
APPENDIX C
Costs and Benefits for City of Fort Collins
Benefits:
Sales and use tax collections:
On
Direct and Rebate
On Taxable Indirect On Taxable Taxable On Taxable
Construction Workers' Visitors' Sales by Purchases by Construction
Year Spending* Spending Spending the Firm the Firm Spending Total
1 $2,441,381 $0 $318 $0 $13,390 ($1,953,105) $501,984
2 $813,794 $247,333 $491 $0 $83,823 ($651,035) $494,405
3 $0 $253,516 $674 $0 $0 $0 $254,190
4 $0 $259,854 $694 $0 $0 $0 $260,548
5 $0 $266,350 $715 $0 $0 $0 $267,065
6 $0 $273,009 $736 $0 $0 $0 $273,746
7 $0 $279,834 $759 $0 $0 $0 $280,593
8 $0 $286,830 $781 $0 $0 $0 $287,611
9 $0 $294,001 $805 $0 $0 $0 $294,806
10 $0 $301,351 $829 $0 $0 $0 $302,180
11 $0 $308,885 $854 $0 $0 $0 $309,738
12 $0 $316,607 $879 $0 $0 $0 $317,486
13 $0 $324,522 $906 $0 $0 $0 $325,428
14 $0 $332,635 $933 $0 $0 $0 $333,568
15 $0 $340,951 $961 $0 $0 $0 $341,912
16 $0 $349,475 $990 $0 $0 $0 $350,464
Total $3,255,175 $4,435,153 $12,323 $0 $97,213 ($2,604,140) $5,195,724
* Tax collections prior to possible rebates.
Sales and use tax collections:
On Rebate on On Food
Manufacturing Manufacturing Consumed
Year Purchases* Purchases at home Total
1 $198,238 ($158,591) $0 $39,648
2 $1,241,012 ($992,809) $58,402 $306,604
3 $0 $0 $59,862 $59,862
4 $0 $0 $61,359 $61,359
5 $0 $0 $62,893 $62,893
6 $0 $0 $64,465 $64,465
7 $0 $0 $66,077 $66,077
8 $0 $0 $67,728 $67,728
9 $0 $0 $69,422 $69,422
10 $0 $0 $71,157 $71,157
11 $0 $0 $72,936 $72,936
12 $0 $0 $74,760 $74,760
13 $0 $0 $76,629 $76,629
14 $0 $0 $78,544 $78,544
15 $0 $0 $80,508 $80,508
16 $0 $0 $82,521 $82,521
Total $1,439,250 ($1,151,400) $1,047,262 $1,335,112
* Tax collections prior to possible rebates.
Page 36
APPENDIX C
Costs and Benefits for City of Fort Collins ‐ Continued
Property tax collections on:
Firm Property*
New Real Prop. Business Real Prop. Business Total Taxes
Residential Taxes Prop. Taxes Taxes Prop. Taxes After
Year Property Collected Collected Abated Abated Abatement Total
1$0$0$0$0$0$0$0
2 $1,861 $0 $0 $0 $0 $0 $1,861
3 $1,861 $0 $0 $0 $0 $0 $1,861
4 $1,861 $0 $0 $0 $0 $0 $1,861
5 $1,861 $0 $0 $0 $0 $0 $1,861
6 $1,861 $0 $0 $0 $0 $0 $1,861
7 $1,861 $0 $0 $0 $0 $0 $1,861
8 $1,861 $0 $0 $0 $0 $0 $1,861
9 $1,861 $0 $0 $0 $0 $0 $1,861
10 $1,861 $0 $0 $0 $0 $0 $1,861
11 $1,861 $0 $0 $0 $0 $0 $1,861
12 $1,861 $0 $0 $0 $0 $0 $1,861
13 $1,861 $0 $0 $0 $0 $0 $1,861
14 $1,861 $0 $0 $0 $0 $0 $1,861
15 $1,861 $0 $0 $0 $0 $0 $1,861
16 $1,861 $0 $0 $0 $0 $0 $1,861
Total $27,911 $0 $0 $0 $0 $0 $27,911
* Net of 100% property tax increment shareback with Downtown Development Authority.
Page 37
APPENDIX C
Costs and Benefits for City of Fort Collins ‐ Continued
Other city revenues from building permits and fees, lodging taxes, miscellaneous revenue collected
from new households and new businesses:
Rebated Miscellaneous Miscellaneous
Building Capital Capital Revenues Revenues
Permits and Expansion Expansion Lodging Collected from Collected from
Year Fees Fees Fees Taxes Households* Businesses** Total
1 $283,329 $6,388,366 ($3,194,183) $143 $0 $0 $3,477,655
2 $0 $0 $0 $220 $24,018 $297,024 $321,262
3 $0 $0 $0 $302 $24,498 $302,964 $327,765
4 $0 $0 $0 $311 $24,988 $309,024 $334,323
5 $0 $0 $0 $321 $25,488 $315,204 $341,013
6 $0 $0 $0 $330 $25,998 $321,508 $347,837
7 $0 $0 $0 $340 $26,518 $327,938 $354,797
8 $0 $0 $0 $351 $27,048 $334,497 $361,896
9 $0 $0 $0 $361 $27,589 $341,187 $369,137
10 $0 $0 $0 $372 $28,141 $348,011 $376,524
11 $0 $0 $0 $383 $28,704 $354,971 $384,058
12 $0 $0 $0 $395 $29,278 $362,071 $391,743
13 $0 $0 $0 $406 $29,863 $369,312 $399,582
14 $0 $0 $0 $419 $30,461 $376,698 $407,577
15 $0 $0 $0 $431 $31,070 $384,232 $415,733
16 $0 $0 $0 $444 $31,691 $391,917 $424,052
Total $283,329 $6,388,366 ($3,194,183) $5,529 $415,352 $5,136,560 $9,034,953
* Miscellaneous revenues collected from households is based on the number of new households moving to the community
and the per household miscellaneous revenue collected from new households as calculated and discussed on page 19.
**Miscellaneous revenues collected from businesses is based on the number of new workers in the community and
the per new worker miscellaneous revenue collected from businesses as calculated and discussed on page 19.
Page 38
APPENDIX C
Costs and Benefits for City of Fort Collins ‐ Continued
City‐owned utility revenue collected by the city from new residents and new businesses:
City‐Owned City‐Owned
Utility Utility
Revenues Revenues
Collected from Collected from
Year Households Businesses Total
1$0 $0 $0
2 $73,246 $906,780 $980,026
3 $74,711 $924,916 $999,627
4 $76,205 $943,414 $1,019,619
5 $77,729 $962,282 $1,040,012
6 $79,284 $981,528 $1,060,812
7 $80,870 $1,001,158 $1,082,028
8 $82,487 $1,021,182 $1,103,669
9 $84,137 $1,041,605 $1,125,742
10 $85,820 $1,062,437 $1,148,257
11 $87,536 $1,083,686 $1,171,222
12 $89,287 $1,105,360 $1,194,646
13 $91,072 $1,127,467 $1,218,539
14 $92,894 $1,150,016 $1,242,910
15 $94,752 $1,173,017 $1,267,768
16 $96,647 $1,196,477 $1,293,124
Total $1,266,677 $15,681,325 $16,948,002
Page 39
APPENDIX C
Costs and Benefits for City of Fort Collins ‐ Continued
Costs:
The costs of providing municipal services and utility services to new residents:
Cost of City Cost of City Cost of City‐ Cost of City‐
Services to Services to Owned Utility Owned Utility
New New Svcs to New Svcs to New
Year Residents Businesses Residents Businesses Total Costs
1$0$0$0$0$0
2 $35,899 $444,108 $67,284 $832,524 $1,379,815
3 $36,617 $452,990 $68,630 $849,174 $1,407,412
4 $37,349 $462,050 $70,003 $866,158 $1,435,560
5 $38,096 $471,291 $71,403 $883,481 $1,464,271
6 $38,858 $480,717 $72,831 $901,151 $1,493,557
7 $39,636 $490,331 $74,287 $919,174 $1,523,428
8 $40,428 $500,138 $75,773 $937,557 $1,553,896
9 $41,237 $510,140 $77,289 $956,308 $1,584,974
10 $42,062 $520,343 $78,834 $975,435 $1,616,674
11 $42,903 $530,750 $80,411 $994,943 $1,649,007
12 $43,761 $541,365 $82,019 $1,014,842 $1,681,987
13 $44,636 $552,192 $83,660 $1,035,139 $1,715,627
14 $45,529 $563,236 $85,333 $1,055,842 $1,749,940
15 $46,439 $574,501 $87,039 $1,076,959 $1,784,938
16 $47,368 $585,991 $88,780 $1,098,498 $1,820,637
Total $620,819 $7,680,145 $1,163,575 $14,397,185 $23,861,724
Net Benefits for the City:
Net Cumulative
Year Benefits Costs Benefits Net Benefits
1 $4,019,286 $0 $4,019,286 $4,019,286
2 $2,104,158 ($1,379,815) $724,343 $4,743,629
3 $1,643,305 ($1,407,412) $235,893 $4,979,522
4 $1,677,710 ($1,435,560) $242,150 $5,221,672
5 $1,712,843 ($1,464,271) $248,572 $5,470,244
6 $1,748,720 ($1,493,557) $255,163 $5,725,407
7 $1,785,355 ($1,523,428) $261,927 $5,987,334
8 $1,822,765 ($1,553,896) $268,869 $6,256,203
9 $1,860,967 ($1,584,974) $275,993 $6,532,196
10 $1,899,978 ($1,616,674) $283,305 $6,815,501
11 $1,939,815 ($1,649,007) $290,808 $7,106,309
12 $1,980,496 ($1,681,987) $298,508 $7,404,817
13 $2,022,038 ($1,715,627) $306,411 $7,711,228
14 $2,064,460 ($1,749,940) $314,521 $8,025,749
15 $2,107,782 ($1,784,938) $322,843 $8,348,592
16 $2,152,022 ($1,820,637) $331,384 $8,679,977
Total $32,541,701 ($23,861,724) $8,679,977
Page 40
APPENDIX C
Costs and Benefits for City of Fort Collins ‐ Continued
Additional Detail: Sales Taxes Collected Specifically within the DDA
The tax collections within the DDA shown below represent a subset of the estimated sales taxes collected by Fort Collins shown
above. The break out table below is predicated on the fact that the city estimates 10% of the City's overall sales occur in the
Downtown Development Authority area.
Sales Taxes
Collected in
Year the DDA
1 $32
2 $30,623
3 $31,405
4 $32,191
5 $32,996
6 $33,821
7 $34,667
8 $35,534
9 $36,423
10 $37,334
11 $38,267
12 $39,225
13 $40,206
14 $41,211
15 $42,242
16 $43,299
Total $549,474
Page 41
APPENDIX C
Costs and Benefits for Larimer County
Benefits:
Sales tax collections:
On
Direct and
On Taxable Indirect On Taxable Taxable
Construction Workers' Visitors' Sales by Purchases by
Year Spending Spending Spending the Firm the Firm Total
1 $380,475 $0 $50 $0 $2,087 $382,611
2 $126,825 $38,545 $76 $0 $13,063 $178,510
3 $0 $39,509 $105 $0 $0 $39,614
4 $0 $40,497 $108 $0 $0 $40,605
5 $0 $41,509 $111 $0 $0 $41,621
6 $0 $42,547 $115 $0 $0 $42,662
7 $0 $43,611 $118 $0 $0 $43,729
8 $0 $44,701 $122 $0 $0 $44,823
9 $0 $45,818 $125 $0 $0 $45,944
10 $0 $46,964 $129 $0 $0 $47,093
11 $0 $48,138 $133 $0 $0 $48,271
12 $0 $49,341 $137 $0 $0 $49,478
13 $0 $50,575 $141 $0 $0 $50,716
14 $0 $51,839 $145 $0 $0 $51,985
15 $0 $53,135 $150 $0 $0 $53,285
16 $0 $54,464 $154 $0 $0 $54,618
Total $507,300 $691,193 $1,921 $0 $15,150 $1,215,563
Property tax collections:
Firm Property*
New Real Prop. Business Real Prop. Business Total Taxes
Residential Taxes Prop. Taxes Taxes Prop. Taxes After
Year Property Collected Collected Abated Abated Abatement Total
1 $0 $130,546 $22,713 $0 $0 $153,259 $153,259
2 $4,277 $234,823 $162,631 $0 $0 $397,454 $401,731
3 $4,277 $234,823 $146,141 $0 $0 $380,964 $385,241
4 $4,277 $234,823 $129,651 $0 $0 $364,474 $368,751
5 $4,277 $234,823 $113,161 $0 $0 $347,983 $352,260
6 $4,277 $234,823 $96,670 $0 $0 $331,493 $335,770
7 $4,277 $234,823 $80,180 $0 $0 $315,003 $319,280
8 $4,277 $234,823 $63,690 $0 $0 $298,513 $302,790
9 $4,277 $234,823 $47,199 $0 $0 $282,022 $286,299
10 $4,277 $234,823 $32,981 $0 $0 $267,803 $272,080
11 $4,277 $234,823 $32,981 $0 $0 $267,803 $272,080
12 $4,277 $234,823 $32,981 $0 $0 $267,803 $272,080
13 $4,277 $234,823 $32,981 $0 $0 $267,803 $272,080
14 $4,277 $234,823 $32,981 $0 $0 $267,803 $272,080
15 $4,277 $234,823 $32,981 $0 $0 $267,803 $272,080
16 $4,277 $234,823 $32,981 $0 $0 $267,803 $272,080
Total $64,157 $3,652,888 $1,092,900 $0 $0 $4,745,789 $4,809,945
* Net of 50% property tax increment shareback with Downtown Development Authority.
Page 42
APPENDIX C
Costs and Benefits for Larimer County
Other county miscellaneous user fees and taxes collected from new households and new businesses:
Miscellaneous Miscellaneous
Revenues Revenues
Collected from Collected from
Year Households Businesses Total
1$0 $0 $0
2 $16,864 $255,612 $272,476
3 $17,201 $260,724 $277,925
4 $17,545 $265,939 $283,484
5 $17,896 $271,257 $289,153
6 $18,254 $276,683 $294,936
7 $18,619 $282,216 $300,835
8 $18,991 $287,861 $306,852
9 $19,371 $293,618 $312,989
10 $19,758 $299,490 $319,249
11 $20,154 $305,480 $325,634
12 $20,557 $311,590 $332,146
13 $20,968 $317,821 $338,789
14 $21,387 $324,178 $345,565
15 $21,815 $330,661 $352,476
16 $22,251 $337,275 $359,526
Total $291,630 $4,420,405 $4,712,035
Costs of providing county services to new residents:
Costs of Costs of
County County
Services: Services:
Year New Residents Businesses Total
1$0 $0 $0
2 $18,737 $284,172 $302,909
3 $19,112 $289,855 $308,968
4 $19,494 $295,653 $315,147
5 $19,884 $301,566 $321,450
6 $20,282 $307,597 $327,879
7 $20,688 $313,749 $334,436
8 $21,101 $320,024 $341,125
9 $21,523 $326,424 $347,948
10 $21,954 $332,953 $354,907
11 $22,393 $339,612 $362,005
12 $22,841 $346,404 $369,245
13 $23,298 $353,332 $376,630
14 $23,764 $360,399 $384,162
15 $24,239 $367,607 $391,846
16 $24,724 $374,959 $399,683
Total $324,034 $4,914,305 $5,238,339
Page 43
APPENDIX C
Costs and Benefits for Larimer County ‐ Continued
Net Benefits for the County:
Cumulative
Net Net
Year Benefits Costs Benefits Benefits
1 $535,871 $0 $535,871 $535,871
2 $852,717 ($302,909) $549,808 $1,085,678
3 $702,780 ($308,968) $393,813 $1,479,491
4 $692,839 ($315,147) $377,692 $1,857,183
5 $683,034 ($321,450) $361,585 $2,218,768
6 $673,368 ($327,879) $345,489 $2,564,257
7 $663,844 ($334,436) $329,407 $2,893,665
8 $654,464 ($341,125) $313,339 $3,207,004
9 $645,232 ($347,948) $297,284 $3,504,288
10 $638,422 ($354,907) $283,515 $3,787,803
11 $645,985 ($362,005) $283,980 $4,071,784
12 $653,705 ($369,245) $284,460 $4,356,244
13 $661,586 ($376,630) $284,956 $4,641,200
14 $669,630 ($384,162) $285,468 $4,926,668
15 $677,842 ($391,846) $285,996 $5,212,664
16 $686,224 ($399,683) $286,542 $5,499,205
Total $10,737,544 ($5,238,339) $5,499,205
Page 44
APPENDIX C
Costs and Benefits for Poudre School District
Benefits:
Property tax collections:
Firm Property*
New Real Prop. Business Real Prop. Business Total Taxes
Residential Taxes Prop. Taxes Taxes Prop. Taxes After
Year Property Collected Collected Abated Abated Abatement Total
1 $0 $317,009 $55,155 $0 $0 $372,164 $372,164
2 $10,386 $570,227 $394,923 $0 $0 $965,150 $975,536
3 $10,386 $570,227 $354,879 $0 $0 $925,106 $935,492
4 $10,386 $570,227 $314,835 $0 $0 $885,062 $895,449
5 $10,386 $570,227 $274,791 $0 $0 $845,019 $855,405
6 $10,386 $570,227 $234,747 $0 $0 $804,975 $815,361
7 $10,386 $570,227 $194,704 $0 $0 $764,931 $775,317
8 $10,386 $570,227 $154,660 $0 $0 $724,887 $735,273
9 $10,386 $570,227 $114,616 $0 $0 $684,843 $695,230
10 $10,386 $570,227 $80,088 $0 $0 $650,315 $660,701
11 $10,386 $570,227 $80,088 $0 $0 $650,315 $660,701
12 $10,386 $570,227 $80,088 $0 $0 $650,315 $660,701
13 $10,386 $570,227 $80,088 $0 $0 $650,315 $660,701
14 $10,386 $570,227 $80,088 $0 $0 $650,315 $660,701
15 $10,386 $570,227 $80,088 $0 $0 $650,315 $660,701
16 $10,386 $570,227 $80,088 $0 $0 $650,315 $660,701
Total $155,794 $8,870,419 $2,653,923 $0 $0 $11,524,343 $11,680,137
* Net of 50% property tax increment shareback with Downtown Development Authority.
Additional State and Federal school funding received:
Additional
State & Federal
School
Year Funding
1$0
2 $162,004
3 $166,865
4 $171,870
5 $177,027
6 $182,337
7 $187,807
8 $193,442
9 $199,245
10 $205,222
11 $211,379
12 $217,720
13 $224,252
14 $230,980
15 $237,909
16 $245,046
Total $3,013,106
Page 45
APPENDIX C
Costs and Benefits for Poudre School District
Costs:
Costs of educating children of new workers who move to the district:
Cost of
Educating
New
Year Students
1$0
2 $159,172
3 $163,948
4 $168,866
5 $173,932
6 $179,150
7 $184,524
8 $190,060
9 $195,762
10 $201,635
11 $207,684
12 $213,914
13 $220,332
14 $226,942
15 $233,750
16 $240,762
Total $2,960,433
Net Benefits for the School District:
Net Cumulative
Year Benefits Costs Benefits Net Benefits
1 $372,164 $0 $372,164 $372,164
2 $1,137,541 ($159,172) $978,368 $1,350,533
3 $1,102,357 ($163,948) $938,410 $2,288,942
4 $1,067,319 ($168,866) $898,453 $3,187,396
5 $1,032,431 ($173,932) $858,500 $4,045,895
6 $997,698 ($179,150) $818,549 $4,864,444
7 $963,125 ($184,524) $778,600 $5,643,044
8 $928,715 ($190,060) $738,655 $6,381,699
9 $894,475 ($195,762) $698,713 $7,080,411
10 $865,924 ($201,635) $664,289 $7,744,700
11 $872,080 ($207,684) $664,396 $8,409,097
12 $878,422 ($213,914) $664,507 $9,073,604
13 $884,953 ($220,332) $664,621 $9,738,225
14 $891,681 ($226,942) $664,739 $10,402,965
15 $898,610 ($233,750) $664,860 $11,067,825
16 $905,747 ($240,762) $664,985 $11,732,810
Total $14,693,242 ($2,960,433) $11,732,810
Page 46
APPENDIX C
Benefits for Downtown Development Authority (DDA)
Property tax collections:
Firm Property ‐ DDA Mill Real Prop. Tax BPP Tax
Real Prop. Business Increment Increment
Taxes Prop. Taxes Shareback Shareback
Year Collected Collected Revenue Revenue Total
1 $57,969 $10,086 $597,774 $103,994 $769,822
2 $104,273 $72,216 $1,075,254 $744,616 $1,996,360
3 $104,273 $64,894 $1,075,254 $669,115 $1,913,536
4 $104,273 $57,571 $1,075,254 $593,613 $1,830,712
5 $104,273 $50,249 $1,075,254 $518,112 $1,747,888
6 $104,273 $42,926 $1,075,254 $442,610 $1,665,063
7 $104,273 $35,604 $1,075,254 $367,108 $1,582,239
8 $104,273 $28,281 $1,075,254 $291,607 $1,499,415
9 $104,273 $20,959 $1,075,254 $216,105 $1,416,591
10 $104,273 $14,645 $1,075,254 $151,003 $1,345,175
11 $104,273 $14,645 $1,075,254 $151,003 $1,345,175
12 $104,273 $14,645 $1,075,254 $151,003 $1,345,175
13 $104,273 $14,645 $1,075,254 $151,003 $1,345,175
14 $104,273 $14,645 $1,075,254 $151,003 $1,345,175
15 $104,273 $14,645 $1,075,254 $151,003 $1,345,175
16 $104,273 $14,645 $1,075,254 $151,003 $1,345,175
Total $1,622,064 $485,302 $16,726,584 $5,003,902 $23,837,852
* Property tax increment shareback revenue includes 100% of the city's property increment tax revenue
and 50% of the other taxing districts property increment tax revenue
Costs:
Costs to the Organization:
Costs to the
Downtown
Development
Year Authority
1 $232,636
2 $324,164
3 $324,164
4 $324,164
5 $324,164
6 $361,979
7 $361,979
8 $361,979
9 $361,979
10 $361,979
11 $361,979
12 $361,979
13 $361,979
14 $361,979
15 $361,979
16 $361,979
Total $5,511,061
Page 47
APPENDIX C
Costs and Benefits for Downtown Development Authority (DDA)
Net Benefits for the Downtown Development Authority:
Net Cumulative
Year Benefits Costs Benefits Net Benefits
1 $769,822 ($232,636) $537,186 $537,186
2 $1,996,360 ($324,164) $1,672,196 $2,209,382
3 $1,913,536 ($324,164) $1,589,372 $3,798,754
4 $1,830,712 ($324,164) $1,506,548 $5,305,301
5 $1,747,888 ($324,164) $1,423,724 $6,729,025
6 $1,665,063 ($361,979) $1,303,084 $8,032,109
7 $1,582,239 ($361,979) $1,220,260 $9,252,370
8 $1,499,415 ($361,979) $1,137,436 $10,389,806
9 $1,416,591 ($361,979) $1,054,612 $11,444,418
10 $1,345,175 ($361,979) $983,196 $12,427,614
11 $1,345,175 ($361,979) $983,196 $13,410,811
12 $1,345,175 ($361,979) $983,196 $14,394,007
13 $1,345,175 ($361,979) $983,196 $15,377,203
14 $1,345,175 ($361,979) $983,196 $16,360,399
15 $1,345,175 ($361,979) $983,196 $17,343,595
16 $1,345,175 ($361,979) $983,196 $18,326,791
Total $23,837,852 ($5,511,061) $18,326,791
Note: The Downtown Development Authority provided the estimate of its costs and benefits.
Page 48
Prepared for:
City of Fort Collins
300 LaPorte Avenue
Fort Collins, Colorado 80522
Prepared by:
Impact DataSource, LLC
4709 Cap Rock Drive
Austin, Texas 78735
www.impactdatasource.com
A REPORT OF THE ECONOMIC IMPACT OF
PROJECT BLUE HOME IN FORT COLLINS, CO
March 4, 2013
ATTACHMENT 7
TABLE OF CONTENTS
Executive Summary………………………………………………...…………………………………………………………… 3
Project Summary
Introduction………………………………………………...……………………………………………………………………6
Description of The Project…………………………………………………………………………………………………6
Summary of the Economic Impact of the Project………………………………………………………………6
Analysis of Fiscal Impact
Costs and Benefits for Local Taxing Districts………………………………………………………………………7
City of Fort Collins…………………………………………………………………………………………………………8
Larimer County……………………………………………………………………………………………………………9
Poudre School District…………………………………………………………………………………………………9
Downtown Development Authority………………………………………………………………………………10
Summary of Incentives
Summary of Possible City Incentives for the Project…………………………………………………………11
Methodology
Conduct of the Analysis…………………………………………………………………………………………………… 12
Discussion of Economic Impact Calculations………………………………………………………………………12
Discussion of Fiscal Impact Calculations……………………………………………………………………………12
About Impact DataSource…………………………………………………………………………………………………15
Appendix A
Data & Rates………………….…………………………………………………………………………………………………17
Appendix B
Detailed Economic Impact Calculations…………………………………………………………………………… 28
Appendix C
Detailed Cost‐Benefit Calculations for:
City of Fort Collins.............................................................................................................. 36
Larimer County.................................................................................................................. 42
Poudre School District........................................................................................................45
Downtown Development Authority...................................................................................47
Page 2
EXECUTIVE SUMMARY
Project background
In Project Blue Home, a company is considering building, equipping and operating a new manufacturing facility and
corporate headquarters in Fort Collins. The firm plans to invest $169 million in new buildings and equipment. Upon
completion of the construction, they expect to hire 400 new employees and relocate 600 employees to Fort Collins from
nearby with average salaries of $76,000 per year.
Economic Impact
Project Blue Home will generate economic impacts during construction and operations. The construction activities,
occurring while the firm builds its new facilities, will generate a one‐time impact for construction workers and businesses
in the area. The on‐going operations of the firm will create annual economic impacts, employing workers in the
community and supporting additional economic activity throughout the region.
The one‐time construction activity will support 1,652 workers in the area and support $91 million in new earnings for
these workers. The operations will include a new corporate headquarters office and manufacturing facilities. The
corporate headquarters will be staffed by the firm's current headquarters staff located in Fort Collins. The manufacturing
operations are estimated to support 2,227 total workers and more than $110.8 million in workers' earnings annually.
Economic Impact
Construction (One‐Time): Total
Total Change in Jobs 1,652
Total Change in Earnings $91,034,579
Average Earnings per Job $55,106
Operations (On‐going)* Headquarters Manufacturing Total
Total Change in Jobs 0 2,227 2,227
Total Change in Earnings $0 $110,890,650 $110,890,650
Average Earnings per Job ‐ $49,794 $49,794
* Total change in earnings during the first year of full employment.
Fiscal Impact
Project Blue Home will generate fiscal impacts for the City of Fort Collins, Larimer County, the school district and other
local taxing districts. The table below provides a high‐level summary of the fiscal impacts for local taxing districts during
construction and over the first 16 years of operations.
Net Benefits During Construction and Over the First 16 Years for Local Taxing Districts
Present
Additional Additional Net Value of
Benefits Costs Benefits Net Benefits**
City of Fort Collins $50,740,478 ($38,751,622) $11,988,856 $9,088,081
Larimer County $14,241,881 ($8,476,964) $5,764,916 $4,072,855
Poudre School District $17,985,977 ($6,027,228) $11,958,749 $8,205,692
Downtown Development Authority (DDA) $23,837,852 ($5,511,061) $18,326,791 $12,712,803
Total $106,806,188 ($58,766,876) $48,039,312 $34,079,431
** This analysis uses a 5% discount rate.
Note: The project will generate revenue for hospital/health, library, water and pest control districts, but because additional costs cannot be
determined, these taxing districts are not included in the analysis.
Page 3
EXECUTIVE SUMMARY
Benefits and Costs for City of Fort Collins
The table below provides more detail on the sources of the additional benefits and costs for the city during construction
and over the first 16 years of the project. Appendix C contains the year‐by‐year calculations.
City of Fort Collins: Benefits, Costs & Net Benefits During Construction & Over First 16 Years
Additional Additional Net
Benefits Costs Benefits
Benefits:
Sales and Use Taxes after rebates $10,659,028 $10,659,028
Property Taxes on the Firm's Real Property* $0 $0
Property Taxes on the Firm's BP Property* $0 $0
Property Taxes on new Residential Property $58,612 $58,612
Capital Expansion Fees after rebates $3,194,183 $3,194,183
Building Permits and Fees $283,329 $283,329
Lodging Taxes $5,529 $5,529
Miscellaneous taxes and user fees $9,016,426 $9,016,426
City‐owned Utility Revenue $27,523,371 $27,523,371
Costs:
Costs to provide city services, excl utilities ($13,480,859) ($13,480,859)
Costs to provide city‐owned utilities ($25,270,763) ($25,270,763)
Total $50,740,478 ($38,751,622) $11,988,856
Present Value (5% discount rate) $34,172,178 ($25,084,097) $9,088,081
* Net of 100% property tax increment shareback with Downtown Development Authority.
The graph below depicts the costs, benefits and net benefits to the City of Fort Collins over the first 16 years.
($4,000,000)
($3,000,000)
($2,000,000)
($1,000,000)
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
12345678910111213141516
Year
Net Benefits Over the First 16 Years
Benefits Costs Net Benefits
Page 4
EXECUTIVE SUMMARY
Value of Project Blue Home
Project Blue Home considers the expansion of an existing manufacturer in Fort Collins. The firm is considering locations
outside of the city for possible relocation and expansion of its manufacturing and headquarters operations. The company
currently employs 700 workers in the city and supports real and personal property of $22.3 million. The firm's
current operations represent approximately $850,000 in net revenues to the City of Fort Collins annually. The new
construction and expansion would increase the company's impact on Fort Collins by approximately $11.9 million
over the next 16 years. In total, the value of Project Blue Home's current operation and expansion represents
approximately $25.8 million in net revenues to the City of Fort Collins over the next 16 years.
Project Blue Home Value to Fort Collins
Net Revenues for Fort Collins
Over 16 Years Average Annual Present Value*
Existing Operations $13,873,386 $867,087 $9,203,326
Construction and Expanded Operations $11,988,856 $749,303 $9,088,081
Total $25,862,242 $1,616,390 $18,291,407
* This analysis uses a 5% discount rate.
Therefore, the estimated value to Fort Collins if the manufacturer were to leave the city is a loss $25.8 million over the
next 16 years or a loss to the city of $1.6 million per year on average or $18.2 million in present value. More than 24%
($6.4 million) of the total net revenue is generated in the first two years as shown in the graph below.
While the above is a summary of the results of this analysis, details are on the following pages.
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
12345678910111213141516
Year
Net Revenues for the City of Fort Collins
Existing Operations Construction & Expansion
Page 5
PROJECT SUMMARY
Introduction
This report presents the results of an economic impact analysis performed by Impact DataSource, an Austin, Texas based
economic consulting, research and analysis firm. The report estimates the impact that a potential project in Fort Collins,
CO will have on the local economy. The report calculates the costs and benefits for specified local taxing districts during
the initial construction and over the first 16 years of operations. The 16‐year analysis coincides with the term of the TIF
arrangement.
City City of Fort Collins
County Larimer County
School District Poudre School District
TIF District Downtown Development Authority (DDA)
Description of the Project
Summary of the Economic Impact of the Project
The project will have the following economic impact on the City of Fort Collins area over the first 16 years:
Economic Impact Over the First 16 Years
Direct
Indirect &
Induced Total
Total number of permanent direct and indirect jobs to be created 1,000 1,227 2,227
Salaries to be paid to direct and indirect workers $1,396,897,087 $591,585,916 $1,988,483,003
Number of direct and indirect workers who will move to the City 60 25 85
Number of new residents in the City 150 63 213
Number of new residential properties to be built in the City 15 6 21
Number of new students expected to attend local school district 57 24 81
Taxable sales and purchases expected in the City $229,942,439 $59,394,729 $289,337,168
$3,579,000 $1,431,600 $5,010,600
The market value the firm's property in Year 1 $46,934,346 $0 $46,934,346
The year‐by‐year economic impacts can be found in Appendix B.
How this economic activity translates into additional costs and benefits for local taxing districts is summarized
next.
The market value of new residential property to be built for direct and indirect workers
who move to the City by Year 10
Project Blue Home represents a company that is considering locating a manufacturing and corporate headquarters in Fort
Collins, Colorado. The company plans to purchase a piece of land in the city and invest $169 million in new buildings and
equipment. The firm plans to initially purchase $50.5 million in equipment for the facility. It is understood that the
company will employ a total of 1,700 employees in Fort Collins. The company currently employs 700 employees in the city
and, with Project Blue Home, will expand employment in Fort Collins by 1,000 employees. The company will hire 400 new
positions in the city and relocate 600 workers that work at a different facility in the county. These employees will have
average compensation of $76,000. This analysis assumes that all of the 1,000 new jobs in Fort Collins will be employed in
the firm's manufacturing operations. The project will be located in the Downtown Development Authority (DDA). The
DDA will receive a 50% real property tax shareback from the County, PVH, Library and PSD. One‐hundred percent of the
City’s property tax will be allocated to the DDA.
Page 6
ANALYSIS OF FISCAL IMPACT
Costs and Benefits for Local Taxing Districts
The project will generate additional benefits and costs for local taxing districts. A summary of these additional
benefits, costs and net benefits is provided below. The source of specific benefits and costs are provided in
more detail for each taxing district on subsequent pages.
Net Benefits During Construction and Over the First 16 Years for Local Taxing Districts
Present
Additional Additional Net Value of
Benefits Costs Benefits Net Benefits*
City of Fort Collins $50,740,478 ($38,751,622) $11,988,856 $9,088,081
Larimer County $14,241,881 ($8,476,964) $5,764,916 $4,072,855
Poudre School District $17,985,977 ($6,027,228) $11,958,749 $8,205,692
Downtown Development Authority (DDA) $23,837,852 ($5,511,061) $18,326,791 $12,712,803
Total $106,806,188 ($58,766,876) $48,039,312 $34,079,431
*The Present Value of Net Benefits is a way of expressing in today's dollars, dollars to be paid or received in the future. Today's dollar and a
dollar to be received or paid at differing times in the future are not comparable because of the time value of money. The time value of money
is the interest rate or each taxing entity's discount rate. This analysis uses a discount rate of 5% to make the dollars comparable.
Note: The project will generate revenue for hospital/health, library, water and pest control districts, but because additional costs cannot be
determined, these taxing districts are not included in the analysis.
City of Fort Collins
25%
Larimer County
12%
Poudre School District
25%
Downtown
Development Authority
(DDA)
38%
Distribution of Net Benefits
Page 7
ANALYSIS OF FISCAL IMPACT
Benefits and Costs for City of Fort Collins
The table below displays the estimated additional benefits, costs and net benefits to be received by the city during
construction and over the first 16 years of the project. Appendix C contains the year‐by‐year calculations.
City of Fort Collins: Benefits, Costs & Net Benefits During Construction & Over First 16 Years
Additional Additional Net
Benefits Costs Benefits
Benefits:
Sales and Use Taxes after rebates $10,659,028 $10,659,028
Property Taxes on the Firm's Real Property* $0 $0
Property Taxes on the Firm's BP Property* $0 $0
Property Taxes on new Residential Property $58,612 $58,612
Capital Expansion Fees after rebates $3,194,183 $3,194,183
Building Permits and Fees $283,329 $283,329
Lodging Taxes $5,529 $5,529
Miscellaneous taxes and user fees collected from:
New Households $845,627 $845,627
New Businesses $8,170,799 $8,170,799
City‐owned Utility Revenue collected from:
New Households $2,578,864 $2,578,864
New Businesses $24,944,507 $24,944,507
Costs:
Costs to provide city services, excluding utilities, to:
New Households ($1,263,943) ($1,263,943)
New Businesses ($12,216,916) ($12,216,916)
Costs to provide city‐owned utilities to:
New Households ($2,368,956) ($2,368,956)
New Businesses ($22,901,807) ($22,901,807)
Total $50,740,478 ($38,751,622) $11,988,856
Present Value (5% discount rate) $34,172,178 ($25,084,097) $9,088,081
* Net of 100% property tax increment shareback with Downtown Development Authority.
The graph below depicts the costs, benefits and net benefits to the City of Fort Collins over the first 16 years.
($4,000,000)
($3,000,000)
($2,000,000)
($1,000,000)
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Year
Net Benefits for the City
Benefits Costs Net Benefits
Page 8
ANALYSIS OF FISCAL IMPACT
Benefits and Costs for Larimer County
The table below displays the estimated additional benefits, costs and net benefits to be received by the county during
construction and over the first 16 years of the project. Appendix C contains the year‐by‐year calculations.
Larimer County: Benefits, Costs & Net Benefits During Construction & Over First 16 Years
Additional Additional Net
Benefits Costs Benefits
Benefits:
Sales and Use Taxes $1,736,023 $1,736,023
Property Taxes on the Firm's Real Property* $3,652,888 $3,652,888
Property Taxes on the Firm's BP Property* $1,092,900 $1,092,900
Property Taxes on new Residential Property $134,729 $134,729
Miscellaneous taxes and user fees collected from:
New Households $593,738 $593,738
New Businesses $7,031,601 $7,031,601
Costs:
Costs to provide county services to:
New Households ($659,709) ($659,709)
New Businesses ($7,817,255) ($7,817,255)
Total $14,241,881 ($8,476,964) $5,764,916
Present Value (5% discount rate) $9,560,031 ($5,487,176) $4,072,855
Benefits and Costs for Poudre School District
The table below displays the estimated additional benefits, costs and net benefits to be received by the school
district over the first 16 years of the project. Appendix C contains the year‐by‐year calculations.
Poudre School District: Benefits, Costs and Net Benefits Over the First 16 Years
Additional Additional Net
Benefits Costs Benefits
Benefits:
Property Taxes on the Firm's Real Property* $8,870,419 $8,870,419
Property Taxes on the Firm's BP Property* $2,653,923 $2,653,923
Property Taxes on new Residential Property $327,168 $327,168
Additional State and Federal Funding $6,134,467 $6,134,467
Costs:
Costs to educate new students ($6,027,228) ($6,027,228)
Total $17,985,977 ($6,027,228) $11,958,749
Present Value (5% discount rate) $12,072,710 ($3,867,019) $8,205,692
* Net of 50% property tax increment shareback with Downtown Development Authority.
Page 9
ANALYSIS OF FISCAL IMPACT
Benefits and Costs for Downtown Development Authority (DDA)
The table below displays the estimated additional benefits, costs and net benefits to be received by the Downtown
Development Authority district over the first 16 years of the project. Appendix C contains the year‐by‐year calculations.
DDA: Benefits, Costs and Net Benefits Over the First 16 Years
Additional Additional Net
Benefits Costs Benefits
Benefits:
Property Taxes on the Firm's Real Property $1,622,064 $1,622,064
Property Taxes on the Firm's BP Property $485,302 $485,302
DDA Real Prop. Tax Increment Shareback Rev. $16,726,584 $16,726,584
DDA BPP Tax Increment Shareback Revenue $5,003,902 $5,003,902
Costs:
DDA Costs ($5,511,061) ($5,511,061)
Total $23,837,852 ($5,511,061) $18,326,791
Present Value (5% discount rate) $16,384,960 ($3,672,156) $12,712,803
* Property tax increment shareback revenue includes 100% of the city's property increment tax revenue
and 50% of the other taxing districts property increment tax revenue
Page 10
SUMMARY OF INCENTIVES
Summary of Possible Incentives for the Project from the City
The city is evaluating the following of incentives for the project:
Use Tax Rebates
Construction Use Tax Rebate
City Proposed*
Construction Estimated Spend $169,100,000
Factor 50.0%
Eligible Amount $84,550,000
Use Tax Due (3.85%) $3,255,175
Rebate Percent 80%
Construction Use Rebate Amount $2,604,140
Equipment Use Tax Rebate
City Proposed*
Equipment Estimated Spend $50,500,000
Factor 95%
Eligible Amount $47,975,000
Use Tax Due (3.00%) $1,439,250
Rebate Percent 80%
Equipment Use Rebate Amount $1,151,400
Capital Expansion Fee Rebate
City Proposed*
Capital Expansion Fees Incurred $6,388,366
Rebate Percent 50%
Capital Expansion Fee Rebate Amount $3,194,183
Total Tax Rebate Amounts
City Proposed*
Construction Use Rebate Amount $2,604,140
Equipment Use Rebate Amount $1,151,400
Capital Expansion Fee Rebate Amount $3,194,183
Total Use and Fee Rebate Amount $6,949,723
* City Proposed Use Tax Rebates assume 100% rebate of the 2.25% General Fund Use Tax Rate.
In total, the city is considering $6.9 million in tax and fee rebates related to the project. The sales tax collections and
capital expansion fees and resulting net benefits for the City of Fort Collins shown earlier in this report reflect the
revenues to be received by the city after rebating the $6.9 million in taxes and fees detailed in the table above.
Page 11
METHODOLOGY
Conduct of the Analysis
This analysis was conducted by Impact DataSource using estimates provided to the City of Fort Collins by the firm, local
rates and information and assumptions by Impact DataSource.
Using this data, the economic impact from the project and the costs and benefits for relevant taxing districts
were calculated for a 16‐year period
Discussion of Economic Impact Calculations
The economic impact as calculated in this report can be categorized into two main types of impacts.
1. Direct economic impacts are the immediate economic activities generated by the firm or project.
These impacts include the employment at the firm and salaries paid to the firm's workers as well
as expenditures made by the firm.
2. Indirect and induced economic impacts represent the additional economic activity that is supported
by the firm or project. Indirect jobs and salaries are created in new or existing area firms, such as
maintenance companies and service firms that may supply goods and services to the firm. In
addition, induced jobs and salaries are created in new or existing local businesses, such as retail
stores, gas stations, banks, restaurants, and service companies that may supply goods and services
to new workers and their families.
Note: This report labels the combined indirect and induced impacts as simply "Indirect".
To estimate the indirect and induced economic impact of the firm and its employees on the area, regional
economic multipliers were used. This economic analysis utilized economic impact multipliers obtained an input/output
model produced by from Economic Modeling Specialists Inc. (EMSI). The EMSI multipliers used in this analysis are specific
to Larimer County and the Commercial and Institutional Building Construction (NAICS 236220) industry, Turbine and
Turbine Generator Set Units Manufacturing (NAICS 333611) industry and the Corporate, Subsidiary, and Regional
Managing Offices (NAICS 551114) industry.
Two types of regional economic multipliers were used in this analysis: an employment multiplier and an
earnings multiplier. An employment multiplier was used to estimate the number of indirect and induced jobs
created and supported in the area. An earnings multiplier was used to estimate the amount of salaries
to be paid to workers in these new indirect and induced jobs. The multipliers show the estimated number of
indirect and induced jobs created for every one direct job at the firm and the amount of salaries paid to
these workers for every dollar paid to a direct worker at the firm. The multipliers used in this analysis are
listed below:
Headquarters Manufacturing
Construction Operations Operations
Earnings multiplier 0.34 0.31 0.77
Employment multiplier 0.64 0.75 2.23
Discussion of Fiscal Impact Calculations
Calculation of Revenues for the City:
The city's revenues from sales, property lodging taxes were calculated directly using data that the firm provided and
assumptions about taxable construction spending and worker spending.
Property taxes were calculated on the new residential property for some new direct and indirect workers who
may move to the county and on the firm's property that will be added to local tax rolls.
Page 12
METHODOLOGY
Lodging taxes were also calculated on lodging sales, in local hotels/motels, to out‐of‐town visitors to the firm.
Sales taxes were calculated on the taxable spending in the area by direct and indirect workers, the spending
of out‐of‐town visitors to the firm, and on the firm's taxable sales and purchases of supplies, materials and
services in the area.
The firm was not asked for nor could reasonably provide some data for calculating some other revenues for the
city. For example, while the city will likely receive revenues from fines paid on speeding tickets given
to new workers at the firm, the firm may not reasonably know the propensity of its workers to speed.
Therefore, some other city revenues were calculated using an average revenue approach. This approach uses
two assumptions:
1 ‐ The city has two general revenue sources ‐‐ revenues from residents and revenues from businesses.
2 ‐ The city will collect (a) about the same amount of other revenues from each household of new workers
that may move to the city as it currently collects from an average household of existing residents, and
(b) about the same amount of other revenues from the new firm (on a per worker basis) will be collected
as the city collects from other businesses in the city.
Using this average revenue approach, revenues likely to be received by the city were calculated from the
households of new workers who may move to the city and from the new firm using average city revenues
per worker calculations.
Utility revenues collected from new residents and new businesses were also calculated using the average revenue
approach as shown in Appendix A.
The total annual city revenues used to make average revenue calculations in this analysis were obtained
from the city's latest comprehensive annual financial report.
Calculation of Costs for the City:
This analysis sought to answer the question, what additional monies will the city have to spend to provide
services to households of new workers who may move to the city and to the firm. A marginal cost approach
was used to calculate additional city costs from the new firm and its workers.
This approach uses two assumptions:
1 ‐ The city spends money on services for two general groups ‐‐ residents and businesses.
2 ‐ The city will spend (a) about the same amount for variable or marginal cost for each household
of new workers that may move to the city as it currently spends for an average household of existing
residents, and (b) about the same amount for variable or marginal costs for the new firm (on a per worker
basis) as it spends for other businesses in the city.
The detailed assumptions to estimate the marginal cost per household and per worker are provided in Appendix A.
The cost to provide city‐owned utility services to new residents and new businesses were calculated using the average
cost approach as shown in Appendix A.
Page 13
METHODOLOGY
Calculation of Net Benefits for the City:
Net benefits calculated in this analysis are the difference between additional city revenues over a 16‐year
period and additional city costs to provide services to the new firm and its workers and indirect workers who
may move to the city.
Calculation of Revenues for the County:
The county's revenues from sales and property taxes were calculated directly using data that the firm provided.
Property taxes were calculated on the new residential property for some new direct and indirect workers who
may move to the county and on the firm's property that will be added to local tax rolls.
Sales taxes were calculated on the taxable spending in the area by direct and indirect workers, the spending
of out‐of‐town visitors to the firm, and on the firm's taxable sales and purchases of supplies, materials and
services in the area.
Also, the model estimates other additional revenue to be received by the county from new residents and new
businesses. An average revenue approach is used in the same way additional county revenues were calculated.
Calculation of Costs for the County:
The model estimates additional costs to provide services to new residents and businesses using a parallel
methodology used for the city.
Calculation of Net Benefits for the County:
Net benefits calculated in this analysis are the difference between additional county revenues over a 16‐year
period and additional county costs to provide services to the new firm and its workers and indirect workers who
may move to the county.
Calculation of Revenues for Public Schools:
The school district's revenues from property taxes were calculated on the new residential property for some
new direct and indirect workers who may move to the county and on the firm's property that will be added to
local tax rolls.
School district revenues from state and federal funds and other local funding were calculated using an average
revenue approach. This approach used the assumption that the school district will collect about the same amount
of these revenues for each new student in the household of a new worker who may move to the county as it
currently collects for each existing student.
Calculation of Costs for Public Schools:
A marginal cost approach was used to calculate additional school district costs from the new firm and its workers.
This approach uses the assumption that the school district will spend about the same amount for variable or
marginal cost for each new student as it spends for each existing student.
Calculation of Net Benefits for Public Schools:
Net benefits calculated in this analysis are the difference between additional school district revenues over a
16‐year period and marginal costs for the school district to provide services to students in the households of
new workers who may move to the county.
The school district's total annual revenues and expenses to make average revenue and marginal costs calculations
in this analysis were obtained from the school district's latest annual budget.
Page 14
METHODOLOGY
Calculation of Revenues for the Downtown Development Authority
Revenues for the Downtown Development Authority are based on the data provided by the organization. In addition, the
costs for the DDA are also based on data provided by the organization.
Special Taxing Districts
The hospital/health district and other local property taxing districts will receive additional property tax revenue as a result
of the project. In addition these special taxing districts may incur additional costs from new residents and from the new
firm. The project will generate revenue for hospital/health, library, water and pest control districts, but because additional
costs cannot be determined, these taxing districts are not included in the analysis.
About Impact DataSource
Impact DataSource is a 19‐year‐old Austin, Texas economic consulting, research and analysis firm. The company has
conducted over 2,500 economic impact analyses of firms, projects and activities in most industry groups throughout
the U.S.
In addition, Impact DataSource has prepared and customized over 50 economic impact models for its clients to
perform their own analyses of economic development projects. These clients include the New Mexico Economic
Development and the Metro Orlando (Florida) Economic Development Commission.
The New Mexico Department of Economic Development uses Impact DataSource's computer model to project the
economic impact of new or expanding firms in the state and costs and benefits for the State of New Mexico and
each local taxing district. The model also calculates the amount of eligible state and local incentives and calculates
a rate of return and payback period for these incentives.
Impact DataSource's team includes the following members:
‐ Jerry Walker, principal/economist, and
‐ Paul Scheuren, principal/economist.
Jerry Walker is an economist and Impact DataSource's Principal. Over the past seventeen years, he has conducted
economic and fiscal impact analyses and cost‐benefit studies of a variety of firms, facilities, projects and activities.
He has also developed several economic impact analysis computer programs for clients to do their own economic
impact analyses of firms, projects, activities and organizations.
He also has a background in government accounting and auditing. Prior to his economic consulting career, he
had a fifteen‐year career as a supervisory auditor with two federal departments – the U.S. Department of
Education and the U.S. Department of Health and Human Services. He reviewed federal programs operated by
states, local governments, colleges and universities, local education agencies, and nonprofit organizations in a
six state area from Austin, Texas. He performed financial audits and operational reviews. During the operational
reviews, the operations of the federal programs were reviewed for economy, efficiency and effectiveness. The
financial audits included analyzing costs incurred for federal programs and components of indirect cost rates.
He has also served as a part‐time accounting instructor at Austin Community College, Austin, Texas.
Jerry has Bachelor of Science and Master of Business Administration degrees in accounting and economics from
Nicholls State University, Thibodaux, Louisiana.
Paul Scheuren is an Impact DataSource economist. Over the past three years, he has conducted economic and
fiscal impact analyses and cost‐benefit studies of a variety of firms, facilities, projects and activities. Recently,
Paul analyzed more than 30 renewable energy projects funded by the Iowa Power Fund, Iowa's energy‐related
economic development fund.
Page 15
METHODOLOGY
Prior to joining Impact DataSource, Paul worked as a compensation analyst at the Texas Association of School
Boards where he supported compensation consulting projects and helped streamline data analysis for a
statewide salary survey.
Paul has a Master of Arts in Economics from Clemson University as well as a Bachelor of Business Administration
in actuarial science from Temple University.
Data used in the analysis, along with schedules of the results of calculations, are on the following pages.
Page 16
Appendix A
Data and Rates
Page 17
APPENDIX A
Local Tax Rates:
Sales tax rates:
City of Fort Collins Taxable goods 3.85%
Mfg equipment eligible for use tax rebate 3.00%
Food consumed at home 2.25%
Larimer County 0.60%
Property tax rates, per $1,000 of assessment:
City of Fort Collins 9.797
Larimer County 22.520
Poudre School District 54.686
Hospital/Health Services 2.167
Other (Water, Library, etc) 4.142
Downtown Development Authority 5.000
City lodging tax rate (in addition to sale tax): 3.00%
Relevant City Rates:
Miscellaneous Primary Government Revenue collected from households and businesses:
Revenue and Expenditures from Fort Collins 2011 Comprehensive Annual Financial Report, Page 28
Primary Government Revenues In Thousands
Charges for services $186,129
Operating grants and contributions $13,843
Capital grants and contributions $26,445
Sales and use taxes $97,589
Property taxes $17,742
Occupational taxes $2,433
Lodging taxes $909
Intergovernmental not restricted to programs $10,274
Investment earnings $5,520
Miscellaneous $2,517
Total Revenues $363,401
Primary Government Revenue Sources Estimated in the Model In Thousands
Sales and use taxes $97,589
Property taxes $17,742
Lodging taxes $909
Total $116,240
Page 18
APPENDIX A
Primary Government Revenues Excluded from Miscellaneous Revenue Calcluation
In Thousands
Charges for Services
Power and Light $100,814
Water $24,308
Wastewater $19,149
Operating grants and contributions (exclude 100%) $13,843
Capital grants and contributions (exclude 100%) $26,445
Intergovernmental not restricted to programs $10,274
Investment earnings $5,520
Total $200,353
Miscellaneous Primary Government Revenue collected from households and businesses
In Thousands
Total Revenues $363,401
Less Sources estimated direct in Model ($116,240)
Less Excluded Revenues ($200,353)
Miscellaneous Revenue $46,808
Includes Primary Government Revenues not estimated in the model or excluded from
from Miscellaneous Revenue Calculation
City financial data and Impact DataSource calculations.
Percent of miscellaneous revenues and fees collected from:
Households 70%
Businesses 30%
Impact DataSource assumption.
Number of households and workers in Fort Collins:
Households 58,111
Workers 67,449
U.S. Census 2011 American Community Survey (Households), U.S. Census OnTheMap 2010 (All Workers)
Estimated miscellaneous revenues to be received from households per new $564
worker household moving to the city
Impact DataSource calculation based on above city data and assumptions.
Estimated miscellaneous revenues to be received from businesses per new $208
worker in the city
Impact DataSource calculation based on above city data and assumptions.
Page 19
APPENDIX A
Marginal Government Expenses imposed on the city by new households and businesses:
Primary Government Expenses In Thousands Fixed Variable
General Government $33,674 80% 20%
Public Safety $51,313 60% 40%
Cultural parks, recreation and environment $29,755 60% 40%
Planning and development $11,053 60% 40%
Transportation $38,540 60% 40%
Interest on long‐term debt $2,523 100% 0%
Storm drainage $8,407 0% 100%
Golf $2,547 0% 100%
Total Expenses $177,812
Total Marginal Costs $69,953
Impact DataSource calculation based on fixed/variable split for government expenses as determined through work with
similar communities. Local expenditure data used in this analysis according to the city's 2011 CAFR.
Percent of marginal costs attributable to:
Households 70%
Businesses 30%
Impact DataSource assumption.
Estimated marginal city costs attributable to households per new worker $843
household moving to the city
Impact DataSource calculation based on above city data and assumptions.
Estimated marginal city costs attributable to businesses per new worker in the city $311
Impact DataSource calculation based on above city data and assumptions.
City‐owned Utility Revenue Collected from new residents and businesses:
City‐Owned Utility Revenues In Thousands
Power and Light $99,657
Water $24,101
Wastewater $19,020
Total City‐Owned Utility Revenues $142,777
Estimated cost per new household to provide city‐owned $1,720
utilities to new households
Impact DataSource calculation based on above city data and assumptions.
Estimated cost per new worker to provide city‐owned $635
utilities to new businesses
Impact DataSource calculation based on above city data and assumptions.
Page 20
APPENDIX A
Costs to provide City‐owned Utilities to new residents and businesses:
City‐Owned Utility Expenses In Thousands
Power and Light $97,057
Water $19,941
Wastewater $14,163
Total City‐Owned Utility Expenses $131,161
Estimated cost per new household to provide city‐owned $1,580
utilities to new households
Impact DataSource calculation based on above city data and assumptions.
Estimated cost per new worker to provide city‐owned $583
utilities to new businesses
Impact DataSource calculation based on above city data and assumptions.
Rate of annual increase in the above expenditures and other revenue: 2%
Impact DataSource assumption.
Relevant County Rates:
Miscellaneous Primary Government Revenue collected from households and businesses:
Revenue and Expenditures from Larimer 2011 Comprehensive Annual Financial Report, Page 26
Primary Government Revenues In Millions
Charges for services $43.63
Operating grants and contributions $55.64
Capital grants and contributions $2.13
Property taxes $91.22
Sales and use taxes $31.95
Other Taxes $5.50
Other Revenues $5.36
Total Revenues $235.43
Primary Government Revenue Sources Estimated in the Model In Millions
Property taxes $91.22
Sales and use taxes $31.95
Total $123.17
Page 21
APPENDIX A
Primary Government Revenues Excluded from Miscellaneous Revenue Calcluation
In Millions
Operating grants and contributions (75%) $41.73
Capital grants and contributions (75%) $1.60
Total $43.33
Miscellaneous Primary Government Revenue collected from households and businesses
In Millions
Total Revenues $235.43
Less Sources estimated direct in Model ($123.17)
Less Excluded Revenues ($43.33)
Miscellaneous Revenue $68.93
Includes Primary Government Revenues not estimated in the model or excluded from
from Miscellaneous Revenue Calculation
County financial data and Impact DataSource calculations.
Percent of miscellaneous revenues and fees collected from:
Households 70%
Businesses 30%
Impact DataSource assumption.
Number of households and workers in Larimer County:
Households 121,911
Workers 115,819
U.S. Census 2011 American Community Survey (Households), U.S. Census OnTheMap 2010 (All Workers)
Estimated miscellaneous revenues to be received from households per new $396
worker household moving to the county
Impact DataSource calculation based on above county data and assumptions.
Estimated miscellaneous revenues to be received from businesses per new $179
worker in the county
Impact DataSource calculation based on above county data and assumptions.
Marginal Government Expenses imposed on the county by new households and businesses:
Primary Government Expenses In Millions Fixed Variable
General Government $33.88 80% 20%
Judicial and Public Safety $63.13 60% 40%
Streets and highways $25.42 60% 40%
Recreation $16.65 60% 40%
Health and Human Services $56.49 60% 40%
Interest on long‐term debt $2.63 100% 0%
Solid Waste $5.25 0% 100%
Total Expenses $203.45
Total Marginal Costs $76.70
Impact DataSource calculation based on fixed/variable split for government expenses as determined through work with
similar communities. Local expenditure data used in this analysis according to the county's 2011 CAFR.
Page 22
APPENDIX A
Percent of marginal costs attributable to:
Households 70%
Businesses 30%
Impact DataSource assumption.
Estimated marginal county costs attributable to households per new worker $440
household moving to the county
Impact DataSource calculation based on above county data and assumptions.
Estimated marginal county costs attributable to businesses per new worker $199
in the county
Impact DataSource calculation based on above county data and assumptions.
Rate of annual increase in the above expenditures and other revenue: 2%
Impact DataSource assumption.
Relevant School District Rates:
The school district’s estimated marginal cost of providing services to each $3,896
new child in the district
Impact DataSource calculation based on values below.
Average annual cost of providing services to each child in the district $7,793
2013 Budget Poudre School District General Fund ‐ Estimated values for 2011‐12
Average annual cost for each new child, as a percent of average annual cost 50%
Impact DataSource assumption.
Estimated annual state, federal and other funding received by the district $3,966
for each child enrolled
2013 Budget Poudre School District General Fund ‐ Estimated values for 2011‐12
Relevant Community Rates:
Expected inflation rate over the first 16 years 3.0%
Impact DataSource assumption.
Discount rate used in analysis to compute discounted cash flows 5.0%
Impact DataSource assumption.
Percent of the gross salaries a typical worker spent on taxable goods and services 27%
Impact DataSource calculation from U.S. Bureau of Labor Statistics, Consumer Expenditure Survey
Percent of the gross salaries a typical worker spent on taxable food consumed at home 6%
Impact DataSource calculation from U.S. Bureau of Labor Statistics, Consumer Expenditure Survey
Page 23
APPENDIX A
Property tax asssessment rates:
Nonresidential assessment rate 29.00%
Residential assessment rate 7.96%
Median value of a new residential property constructed in the city $238,600
U.S. Census American Community Survey 2011 Fort Collins, CO
Percent annual increase in the taxable value of residential and commercial 0.0%
real property on local tax rolls over the first 16 years
Impact DataSource assumption.
Depreciation rates:
To estimate the annual taxable or depreciable value of furniture, fixtures and equipment owned by the firm,
this analysis uses the following depreciation schedule. Therefore, property taxes on the firm's furniture, fixtures
and equipment are calculated on the following percentages of the costs of such equipment purchased each year:
Year 1 100%
Year 2 90%
Year 3 80%
Year 4 70%
Year 5 60%
Year 6 50%
Year 7 40%
Year 8 30%
Year 9 20%
Year 10 20%
Impact DataSource assumption.
The Firm's Investments, Assets and Construction:
The market value of investments at the firm's facility each year:
Buildings and Furniture,
Other Real Fixtures,
Property and
Land Improvements Equipment Total
Year 1 $0 $39,978,621 $6,955,725 $46,934,346
Year 2 $0 $31,933,793 $43,544,275 $75,478,068
Year 3 $0$0$0$0
Year 4 $0$0$0$0
Year 5 $0$0$0$0
Year 6 $0$0$0$0
Year 7 $0$0$0$0
Year 8 $0$0$0$0
Year 9 $0$0$0$0
Year 10 $0 $0 $0 $0
Total $0 $71,912,414 $50,500,000 $122,412,414
Building and Other Real Property Improvement value was deduced based on the Downtown Development Authority's
estimated tax collections. The value of FFE is based $50.5 million in equipment phased in over two years.
Page 24
APPENDIX A
Spending During Construction:
Estimated spending for construction and capital expansion fees (if applicable):
Construction Capital
Spending Expansion Fees
Year 1 $126,825,000 Year 1 $6,388,366
Year 2 $42,275,000 Year 2$0
Year 3$0 Year 3$0
Year 4$0 Year 4$0
Year 5$0 Year 5$0
Year 6$0 Year 6$0
Year 7$0 Year 7$0
Year 8$0 Year 8$0
Year 9$0 Year 9$0
Year 10 $0 Year 10 $0
Percent of construction costs for:
Materials 50%
Labor 50%
Estimated percent of construction materials that will be subject to the city's use tax 100%
Percent of taxable spending by construction workers that will be in the city 0%
Percent of furniture, fixtures and equipment to be subject to 3% use tax rate: 95%
Expected city building permits and plan check fees to be paid during construction, if applicable:
Plan Check Total Permits
Permit Fees Fees and Fees
Year 1 $191,247 $92,082 $283,329
Year 2 $0$0$0
Year 3 $0$0$0
Year 4 $0$0$0
Year 5 $0$0$0
Year 6 $0$0$0
Year 7 $0$0$0
Year 8 $0$0$0
Year 9 $0$0$0
Year 10 $0 $0 $0
The above fees were estimated using the city's Building‐Combination Estimate of Fees web application. The estimate is
based on construction with a $125 million valuation with subcontractors.
http://www.fcgov.com/building/fees.php
Page 25
APPENDIX A
Activities During the Firm's Operations:
The firm's estimated taxable purchases of materials, supplies and services in the community and the
firm's estimated taxable sales that will be subject to sales tax in the city
Taxable Taxable
Purchases Sales
Year 1 $347,786 $0
Year 2 $2,177,214 $0
Year 3$0 $0
Year 4$0 $0
Year 5$0 $0
Year 6$0 $0
Year 7$0 $0
Year 8$0 $0
Year 9$0 $0
Year 10 $0 $0
New employees in Fort Collins each year:
New New Total
Headquarters Manufacturing New Employees
Employees Employees added
added each year each year each year*
Year 1 000
Year 2 0 1,000 1,000
Year 3 000
Year 4 000
Year 5 000
Year 6 000
Year 7 000
Year 8 000
Year 9 000
Year 10000
Total 0 1,000 1,000
* Of the 1,000 new jobs to Fort Collins, 600 employees will be relocating
from nearby and 400 will be new hires by the firm.
Number of new workers who will move to the city to take job at the firm:
Estimated percent of the 400 newly hired employees moving to the city 15.0%
Number of new
employees moving
to the city
Year 10
Year 260
Year 30
Year 40
Year 50
Year 60
Year 70
Year 80
Year 90
Year 10 0
Total 60
Page 26
APPENDIX A
Average annual salaries of new employees in the first year $76,000
Percent of expected increase in employee salaries after Year 12.5%
Multipliers for calculating the number of indirect and induced jobs and earnings in the area during operations:
Headquarters Manufacturing
Earnings 0.3100 0.7700
Employment 0.7500 2.2310
This cost‐benefit analysis uses the above multipliers to project the indirect and induced benefits
in the community as a result of the direct economic activity. The employment multiplier shows
the number of spin‐off jobs that will be created from each direct job. Similarly, the earnings
multiplier estimates the salaries and wages to be paid to workers in these spin‐off jobs for
each $1 paid to direct workers.
Percent of workers in new indirect and induced jobs that will move 2%
to the city for the job
Estimated percentage of workers moving to the city that will have new 25%
residential property built for them the first year that they move to the city
Household size of a typical new worker moving to the city: 2.50
Number of school children in a typical worker's household 0.95
Percent of taxable shopping by a typical new worker that will 55%
be in the city
Visitors to the Firm from Out‐of‐Town:
Number of out‐of‐town visitor days resulting from the project:
Includes vendors, customer audits and visiting corporate employees.
Visitors
Year 1 100
Year 2 150
Year 3 200
Year 4 200
Year 5 200
Year 6 200
Percent of annual increase in the number of visitors after year 60%
Average daily taxable visitor spending, excluding lodging in the city $35
Percent of visitor days that will result in a night in a hotel/motel in the city 50%
Average nightly room rate in a local motel $95
Page 27
Appendix B
Economic Impact Calculations
Page 28
APPENDIX B
Number of local jobs added each year and worker salaries to be paid: Headquarters
Direct Indirect Total Direct Indirect Total
Year Jobs Jobs Jobs Salaries Salaries Salaries
1 0 0 0 $0 $0 $0
2 0 0 0 $0 $0 $0
3 0 0 0 $0 $0 $0
4 0 0 0 $0 $0 $0
5 0 0 0 $0 $0 $0
6 0 0 0 $0 $0 $0
7 0 0 0 $0 $0 $0
8 0 0 0 $0 $0 $0
9 0 0 0 $0 $0 $0
10000$0$0$0
11000$0$0$0
12000$0$0$0
13000$0$0$0
14000$0$0$0
15000$0$0$0
16000$0$0$0
Total 0 0 0 $0 $0 $0
Number of local jobs added each year and worker salaries to be paid: Manufacturing
Direct Indirect Total Direct Indirect Total
Year Jobs Jobs Jobs Salaries Salaries Salaries
1 0 0 0 $0 $0 $0
2 1,000 1,227 2,227 $77,900,000 $32,990,650 $110,890,650
3 0 0 0 $79,847,500 $33,815,416 $113,662,916
4 0 0 0 $81,843,688 $34,660,802 $116,504,489
5 0 0 0 $83,889,780 $35,527,322 $119,417,101
6 0 0 0 $85,987,024 $36,415,505 $122,402,529
7 0 0 0 $88,136,700 $37,325,892 $125,462,592
8 0 0 0 $90,340,117 $38,259,040 $128,599,157
9 0 0 0 $92,598,620 $39,215,516 $131,814,136
10 0 0 0 $94,913,586 $40,195,904 $135,109,489
11 0 0 0 $97,286,425 $41,200,801 $138,487,226
12 0 0 0 $99,718,586 $42,230,821 $141,949,407
13 0 0 0 $102,211,551 $43,286,592 $145,498,142
14 0 0 0 $104,766,839 $44,368,756 $149,135,596
15 0 0 0 $107,386,010 $45,477,975 $152,863,986
16 0 0 0 $110,070,661 $46,614,925 $156,685,585
Total 1,000 1,227 2,227 $1,396,897,087 $591,585,916 $1,988,483,003
Page 29
APPENDIX B
Number of local jobs added each year and worker salaries to be paid: Headquarters & Manufacturing
Direct Indirect Total Direct Indirect Total
Year Jobs Jobs Jobs Salaries Salaries Salaries
1 0 0 0 $0 $0 $0
2 1,000 1,227 2,227 $77,900,000 $32,990,650 $110,890,650
3 0 0 0 $79,847,500 $33,815,416 $113,662,916
4 0 0 0 $81,843,688 $34,660,802 $116,504,489
5 0 0 0 $83,889,780 $35,527,322 $119,417,101
6 0 0 0 $85,987,024 $36,415,505 $122,402,529
7 0 0 0 $88,136,700 $37,325,892 $125,462,592
8 0 0 0 $90,340,117 $38,259,040 $128,599,157
9 0 0 0 $92,598,620 $39,215,516 $131,814,136
10 0 0 0 $94,913,586 $40,195,904 $135,109,489
11 0 0 0 $97,286,425 $41,200,801 $138,487,226
12 0 0 0 $99,718,586 $42,230,821 $141,949,407
13 0 0 0 $102,211,551 $43,286,592 $145,498,142
14 0 0 0 $104,766,839 $44,368,756 $149,135,596
15 0 0 0 $107,386,010 $45,477,975 $152,863,986
16 0 0 0 $110,070,661 $46,614,925 $156,685,585
Total 1,000 1,227 2,227 $1,396,897,087 $591,585,916 $1,988,483,003
Number of direct and indirect workers and their families who will move
to the area and their children who will attend local public schools:
New Workers Total Total
Moving to New New
Year the Area Residents Students
10 0 0
2 85 213 81
30 0 0
40 0 0
50 0 0
60 0 0
70 0 0
80 0 0
90 0 0
10 0 0 0
11 0 0 0
12 0 0 0
13 0 0 0
14 0 0 0
15 0 0 0
16 0 0 0
Total 85 213 81
Page 30
APPENDIX B
Number of new residential properties that may be built in the city for direct and indirect workers
who will move to the community:
Total New
Residential
Year Properties
10
221
30
40
50
60
70
80
90
10 0
11 0
12 0
13 0
14 0
15 0
16 0
Total 21
Page 31
APPENDIX B
Local taxable spending on which sales taxes will be collected:
Direct and
Taxable Indirect Taxable Taxable
Construction Workers' Visitors' Sales by Purchases by
Year Spending Spending* Spending the Firm the Firm Total
1 $63,412,500 $0 $8,250 $0 $347,786 $63,768,536
2 $21,137,500 $11,261,594 $12,746 $0 $2,177,214 $34,589,054
3 $0 $11,543,134 $17,505 $0 $0 $11,560,639
4 $0 $11,831,712 $18,030 $0 $0 $11,849,742
5 $0 $12,127,505 $18,571 $0 $0 $12,146,076
6 $0 $12,430,693 $19,128 $0 $0 $12,449,821
7 $0 $12,741,460 $19,702 $0 $0 $12,761,162
8 $0 $13,059,996 $20,293 $0 $0 $13,080,289
9 $0 $13,386,496 $20,902 $0 $0 $13,407,398
10 $0 $13,721,159 $21,529 $0 $0 $13,742,688
11 $0 $14,064,188 $22,175 $0 $0 $14,086,362
12 $0 $14,415,792 $22,840 $0 $0 $14,438,632
13 $0 $14,776,187 $23,525 $0 $0 $14,799,712
14 $0 $15,145,592 $24,231 $0 $0 $15,169,823
15 $0 $15,524,232 $24,958 $0 $0 $15,549,189
16 $0 $15,912,338 $25,706 $0 $0 $15,938,044
Total $84,550,000 $201,942,078 $320,090 $0 $2,525,000 $289,337,168
* Spending includes only expenditures on items subject to general sales tax.
Manufacturing purchases subject to use tax and local taxable spending by direct and indirect workers
on food consumed at home:
Spending on
Rebateable Food
Manufacturing Manufacturing Consumed
Year Purchases Purchases at home
1 $6,607,939 $6,607,939 $0
2 $41,367,061 $41,367,061 $4,550,139
3 $0 $0 $4,663,892
4 $0 $0 $4,780,490
5 $0 $0 $4,900,002
6 $0 $0 $5,022,502
7 $0 $0 $5,148,065
8 $0 $0 $5,276,766
9 $0 $0 $5,408,685
10 $0 $0 $5,543,903
11 $0 $0 $5,682,500
12 $0 $0 $5,824,563
13 $0 $0 $5,970,177
14 $0 $0 $6,119,431
15 $0 $0 $6,272,417
16 $0 $0 $6,429,227
Total $47,975,000 $47,975,000 $81,592,759
Page 32
APPENDIX B
Local spending by visitors on lodging by out‐of‐town visitors:
Spending
Year on Lodging
1 $4,750
2 $7,339
3 $10,079
4 $10,381
5 $10,692
6 $11,013
7 $11,343
8 $11,684
9 $12,034
10 $12,395
11 $12,767
12 $13,150
13 $13,545
14 $13,951
15 $14,370
16 $14,801
Total $184,294
Page 33
APPENDIX B
Market value of new residential property built for direct and indirect workers who move to the
community and the market value of the firm's property:
Value of Value of Firm's
Firm's Business
New Real Personal Total
Residential Property Property Taxable
Year Property Tax Rolls Tax Rolls Property
1 $0 $39,978,621 $6,955,725 $46,934,346
2 $5,010,600 $71,912,414 $49,804,428 $126,727,442
3 $5,010,600 $71,912,414 $44,754,428 $121,677,442
4 $5,010,600 $71,912,414 $39,704,428 $116,627,442
5 $5,010,600 $71,912,414 $34,654,428 $111,577,442
6 $5,010,600 $71,912,414 $29,604,428 $106,527,442
7 $5,010,600 $71,912,414 $24,554,428 $101,477,442
8 $5,010,600 $71,912,414 $19,504,428 $96,427,442
9 $5,010,600 $71,912,414 $14,454,428 $91,377,442
10 $5,010,600 $71,912,414 $10,100,000 $87,023,014
11 $5,010,600 $71,912,414 $10,100,000 $87,023,014
12 $5,010,600 $71,912,414 $10,100,000 $87,023,014
13 $5,010,600 $71,912,414 $10,100,000 $87,023,014
14 $5,010,600 $71,912,414 $10,100,000 $87,023,014
15 $5,010,600 $71,912,414 $10,100,000 $87,023,014
16 $5,010,600 $71,912,414 $10,100,000 $87,023,014
Assessed value of new residential property built for direct and indirect workers who move to the
community and the assessed value of the firm's property:
Value of Value of Firm's
Firm's Business
New Real Personal Total
Residential Property Property Taxable
Year Property Tax Rolls Tax Rolls Property
1 $0 $11,593,800 $2,017,160 $13,610,960
2 $398,844 $20,854,600 $14,443,284 $35,696,728
3 $398,844 $20,854,600 $12,978,784 $34,232,228
4 $398,844 $20,854,600 $11,514,284 $32,767,728
5 $398,844 $20,854,600 $10,049,784 $31,303,228
6 $398,844 $20,854,600 $8,585,284 $29,838,728
7 $398,844 $20,854,600 $7,120,784 $28,374,228
8 $398,844 $20,854,600 $5,656,284 $26,909,728
9 $398,844 $20,854,600 $4,191,784 $25,445,228
10 $398,844 $20,854,600 $2,929,000 $24,182,444
11 $398,844 $20,854,600 $2,929,000 $24,182,444
12 $398,844 $20,854,600 $2,929,000 $24,182,444
13 $398,844 $20,854,600 $2,929,000 $24,182,444
14 $398,844 $20,854,600 $2,929,000 $24,182,444
15 $398,844 $20,854,600 $2,929,000 $24,182,444
16 $398,844 $20,854,600 $2,929,000 $24,182,444
Page 34
Appendix C
Cost and Benefit Calculations
Page 35
APPENDIX C
Costs and Benefits for City of Fort Collins
Benefits:
Sales and use tax collections:
On
Direct and Rebate
On Taxable Indirect On Taxable Taxable On Taxable
Construction Workers' Visitors' Sales by Purchases by Construction
Year Spending* Spending Spending the Firm the Firm Spending Total
1 $2,441,381 $0 $318 $0 $13,390 ($1,953,105) $501,984
2 $813,794 $433,571 $491 $0 $83,823 ($651,035) $680,644
3 $0 $444,411 $674 $0 $0 $0 $445,085
4 $0 $455,521 $694 $0 $0 $0 $456,215
5 $0 $466,909 $715 $0 $0 $0 $467,624
6 $0 $478,582 $736 $0 $0 $0 $479,318
7 $0 $490,546 $759 $0 $0 $0 $491,305
8 $0 $502,810 $781 $0 $0 $0 $503,591
9 $0 $515,380 $805 $0 $0 $0 $516,185
10 $0 $528,265 $829 $0 $0 $0 $529,093
11 $0 $541,471 $854 $0 $0 $0 $542,325
12 $0 $555,008 $879 $0 $0 $0 $555,887
13 $0 $568,883 $906 $0 $0 $0 $569,789
14 $0 $583,105 $933 $0 $0 $0 $584,038
15 $0 $597,683 $961 $0 $0 $0 $598,644
16 $0 $612,625 $990 $0 $0 $0 $613,615
Total $3,255,175 $7,774,770 $12,323 $0 $97,213 ($2,604,140) $8,535,341
* Tax collections prior to possible rebates.
Sales and use tax collections:
On Rebate on On Food
Manufacturing Manufacturing Consumed
Year Purchases* Purchases at home Total
1 $198,238 ($158,591) $0 $39,648
2 $1,241,012 ($992,809) $102,378 $350,580
3 $0 $0 $104,938 $104,938
4 $0 $0 $107,561 $107,561
5 $0 $0 $110,250 $110,250
6 $0 $0 $113,006 $113,006
7 $0 $0 $115,831 $115,831
8 $0 $0 $118,727 $118,727
9 $0 $0 $121,695 $121,695
10 $0 $0 $124,738 $124,738
11 $0 $0 $127,856 $127,856
12 $0 $0 $131,053 $131,053
13 $0 $0 $134,329 $134,329
14 $0 $0 $137,687 $137,687
15 $0 $0 $141,129 $141,129
16 $0 $0 $144,658 $144,658
Total $1,439,250 ($1,151,400) $1,835,837 $2,123,687
* Tax collections prior to possible rebates.
Page 36
APPENDIX C
Costs and Benefits for City of Fort Collins ‐ Continued
Property tax collections on:
Firm Property*
New Real Prop. Business Real Prop. Business Total Taxes
Residential Taxes Prop. Taxes Taxes Prop. Taxes After
Year Property Collected Collected Abated Abated Abatement Total
1$0$0$0$0$0$0$0
2 $3,907 $0 $0 $0 $0 $0 $3,907
3 $3,907 $0 $0 $0 $0 $0 $3,907
4 $3,907 $0 $0 $0 $0 $0 $3,907
5 $3,907 $0 $0 $0 $0 $0 $3,907
6 $3,907 $0 $0 $0 $0 $0 $3,907
7 $3,907 $0 $0 $0 $0 $0 $3,907
8 $3,907 $0 $0 $0 $0 $0 $3,907
9 $3,907 $0 $0 $0 $0 $0 $3,907
10 $3,907 $0 $0 $0 $0 $0 $3,907
11 $3,907 $0 $0 $0 $0 $0 $3,907
12 $3,907 $0 $0 $0 $0 $0 $3,907
13 $3,907 $0 $0 $0 $0 $0 $3,907
14 $3,907 $0 $0 $0 $0 $0 $3,907
15 $3,907 $0 $0 $0 $0 $0 $3,907
16 $3,907 $0 $0 $0 $0 $0 $3,907
Total $58,612 $0 $0 $0 $0 $0 $58,612
* Net of 100% property tax increment shareback with Downtown Development Authority.
Page 37
APPENDIX C
Costs and Benefits for City of Fort Collins ‐ Continued
Other city revenues from building permits and fees, lodging taxes, miscellaneous revenue collected
from new households and new businesses:
Rebated Miscellaneous Miscellaneous
Building Capital Capital Revenues Revenues
Permits and Expansion Expansion Lodging Collected from Collected from
Year Fees Fees Fees Taxes Households* Businesses** Total
1 $283,329 $6,388,366 ($3,194,183) $143 $0 $0 $3,477,655
2 $0 $0 $0 $220 $48,899 $472,480 $521,599
3 $0 $0 $0 $302 $49,877 $481,930 $532,109
4 $0 $0 $0 $311 $50,874 $491,569 $542,754
5 $0 $0 $0 $321 $51,892 $501,400 $553,612
6 $0 $0 $0 $330 $52,930 $511,428 $564,688
7 $0 $0 $0 $340 $53,988 $521,656 $575,985
8 $0 $0 $0 $351 $55,068 $532,090 $587,508
9 $0 $0 $0 $361 $56,169 $542,731 $599,262
10 $0 $0 $0 $372 $57,293 $553,586 $611,251
11 $0 $0 $0 $383 $58,439 $564,658 $623,479
12 $0 $0 $0 $395 $59,607 $575,951 $635,953
13 $0 $0 $0 $406 $60,800 $587,470 $648,676
14 $0 $0 $0 $419 $62,016 $599,219 $661,653
15 $0 $0 $0 $431 $63,256 $611,204 $674,891
16 $0 $0 $0 $444 $64,521 $623,428 $688,393
Total $283,329 $6,388,366 ($3,194,183) $5,529 $845,627 $8,170,799 $12,499,467
* Miscellaneous revenues collected from households is based on the number of new households moving to the community
and the per household miscellaneous revenue collected from new households as calculated and discussed on page 19.
**Miscellaneous revenues collected from businesses is based on the number of new workers in the community and
the per new worker miscellaneous revenue collected from businesses as calculated and discussed on page 19.
Page 38
APPENDIX C
Costs and Benefits for City of Fort Collins ‐ Continued
City‐owned utility revenue collected by the city from new residents and new businesses:
City‐Owned City‐Owned
Utility Utility
Revenues Revenues
Collected from Collected from
Year Households Businesses Total
1$0 $0 $0
2 $149,124 $1,442,428 $1,591,552
3 $152,106 $1,471,276 $1,623,383
4 $155,149 $1,500,702 $1,655,851
5 $158,252 $1,530,716 $1,688,968
6 $161,417 $1,561,330 $1,722,747
7 $164,645 $1,592,557 $1,757,202
8 $167,938 $1,624,408 $1,792,346
9 $171,297 $1,656,896 $1,828,193
10 $174,723 $1,690,034 $1,864,757
11 $178,217 $1,723,835 $1,902,052
12 $181,781 $1,758,312 $1,940,093
13 $185,417 $1,793,478 $1,978,895
14 $189,125 $1,829,347 $2,018,473
15 $192,908 $1,865,934 $2,058,842
16 $196,766 $1,903,253 $2,100,019
Total $2,578,864 $24,944,507 $27,523,371
Page 39
APPENDIX C
Costs and Benefits for City of Fort Collins ‐ Continued
Costs:
The costs of providing municipal services and utility services to new residents:
Cost of City Cost of City Cost of City‐ Cost of City‐
Services to Services to Owned Utility Owned Utility
New New Svcs to New Svcs to New
Year Residents Businesses Residents Businesses Total Costs
1$0$0$0$0$0
2 $73,088 $706,449 $136,986 $1,324,308 $2,240,831
3 $74,550 $720,578 $139,726 $1,350,794 $2,285,647
4 $76,041 $734,989 $142,520 $1,377,810 $2,331,360
5 $77,562 $749,689 $145,371 $1,405,366 $2,377,988
6 $79,113 $764,683 $148,278 $1,433,473 $2,425,547
7 $80,695 $779,977 $151,244 $1,462,143 $2,474,058
8 $82,309 $795,576 $154,268 $1,491,386 $2,523,540
9 $83,955 $811,488 $157,354 $1,521,213 $2,574,010
10 $85,634 $827,718 $160,501 $1,551,638 $2,625,490
11 $87,347 $844,272 $163,711 $1,582,670 $2,678,000
12 $89,094 $861,157 $166,985 $1,614,324 $2,731,560
13 $90,876 $878,380 $170,325 $1,646,610 $2,786,192
14 $92,693 $895,948 $173,731 $1,679,543 $2,841,915
15 $94,547 $913,867 $177,206 $1,713,133 $2,898,754
16 $96,438 $932,144 $180,750 $1,747,396 $2,956,729
Total $1,263,943 $12,216,916 $2,368,956 $22,901,807 $38,751,622
Net Benefits for the City:
Net Cumulative
Year Benefits Costs Benefits Net Benefits
1 $4,019,286 $0 $4,019,286 $4,019,286
2 $3,148,283 ($2,240,831) $907,452 $4,926,738
3 $2,709,422 ($2,285,647) $423,774 $5,350,512
4 $2,766,288 ($2,331,360) $434,928 $5,785,440
5 $2,824,362 ($2,377,988) $446,374 $6,231,814
6 $2,883,667 ($2,425,547) $458,119 $6,689,933
7 $2,944,231 ($2,474,058) $470,172 $7,160,105
8 $3,006,080 ($2,523,540) $482,540 $7,642,646
9 $3,069,242 ($2,574,010) $495,232 $8,137,878
10 $3,133,746 ($2,625,490) $508,256 $8,646,133
11 $3,199,620 ($2,678,000) $521,620 $9,167,753
12 $3,266,893 ($2,731,560) $535,333 $9,703,086
13 $3,335,596 ($2,786,192) $549,404 $10,252,490
14 $3,405,759 ($2,841,915) $563,843 $10,816,333
15 $3,477,413 ($2,898,754) $578,660 $11,394,993
16 $3,550,591 ($2,956,729) $593,863 $11,988,856
Total $50,740,478 ($38,751,622) $11,988,856
Page 40
APPENDIX C
Costs and Benefits for City of Fort Collins ‐ Continued
Additional Detail: Sales Taxes Collected Specifically within the DDA
The tax collections within the DDA shown below represent a subset of the estimated sales taxes collected by Fort Collins shown
above. The break out table below is predicated on the fact that the city estimates 10% of the City's overall sales occur in the
Downtown Development Authority area.
Sales Taxes
Collected in
Year the DDA
1 $32
2 $53,644
3 $55,002
4 $56,378
5 $57,787
6 $59,232
7 $60,714
8 $62,232
9 $63,788
10 $65,383
11 $67,018
12 $68,694
13 $70,412
14 $72,173
15 $73,977
16 $75,827
Total $962,293
Page 41
APPENDIX C
Costs and Benefits for Larimer County
Benefits:
Sales tax collections:
On
Direct and
On Taxable Indirect On Taxable Taxable
Construction Workers' Visitors' Sales by Purchases by
Year Spending Spending Spending the Firm the Firm Total
1 $380,475 $0 $50 $0 $2,087 $382,611
2 $126,825 $67,570 $76 $0 $13,063 $207,534
3 $0 $69,259 $105 $0 $0 $69,364
4 $0 $70,990 $108 $0 $0 $71,098
5 $0 $72,765 $111 $0 $0 $72,876
6 $0 $74,584 $115 $0 $0 $74,699
7 $0 $76,449 $118 $0 $0 $76,567
8 $0 $78,360 $122 $0 $0 $78,482
9 $0 $80,319 $125 $0 $0 $80,444
10 $0 $82,327 $129 $0 $0 $82,456
11 $0 $84,385 $133 $0 $0 $84,518
12 $0 $86,495 $137 $0 $0 $86,632
13 $0 $88,657 $141 $0 $0 $88,798
14 $0 $90,874 $145 $0 $0 $91,019
15 $0 $93,145 $150 $0 $0 $93,295
16 $0 $95,474 $154 $0 $0 $95,628
Total $507,300 $1,211,652 $1,921 $0 $15,150 $1,736,023
Property tax collections:
Firm Property*
New Real Prop. Business Real Prop. Business Total Taxes
Residential Taxes Prop. Taxes Taxes Prop. Taxes After
Year Property Collected Collected Abated Abated Abatement Total
1 $0 $130,546 $22,713 $0 $0 $153,259 $153,259
2 $8,982 $234,823 $162,631 $0 $0 $397,454 $406,436
3 $8,982 $234,823 $146,141 $0 $0 $380,964 $389,946
4 $8,982 $234,823 $129,651 $0 $0 $364,474 $373,456
5 $8,982 $234,823 $113,161 $0 $0 $347,983 $356,965
6 $8,982 $234,823 $96,670 $0 $0 $331,493 $340,475
7 $8,982 $234,823 $80,180 $0 $0 $315,003 $323,985
8 $8,982 $234,823 $63,690 $0 $0 $298,513 $307,495
9 $8,982 $234,823 $47,199 $0 $0 $282,022 $291,004
10 $8,982 $234,823 $32,981 $0 $0 $267,803 $276,785
11 $8,982 $234,823 $32,981 $0 $0 $267,803 $276,785
12 $8,982 $234,823 $32,981 $0 $0 $267,803 $276,785
13 $8,982 $234,823 $32,981 $0 $0 $267,803 $276,785
14 $8,982 $234,823 $32,981 $0 $0 $267,803 $276,785
15 $8,982 $234,823 $32,981 $0 $0 $267,803 $276,785
16 $8,982 $234,823 $32,981 $0 $0 $267,803 $276,785
Total $134,729 $3,652,888 $1,092,900 $0 $0 $4,745,789 $4,880,518
* Net of 50% property tax increment shareback with Downtown Development Authority.
Page 42
APPENDIX C
Costs and Benefits for Larimer County
Other county miscellaneous user fees and taxes collected from new households and new businesses:
Miscellaneous Miscellaneous
Revenues Revenues
Collected from Collected from
Year Households Businesses Total
1$0 $0 $0
2 $34,333 $406,606 $440,939
3 $35,020 $414,738 $449,758
4 $35,720 $423,033 $458,753
5 $36,435 $431,493 $467,928
6 $37,163 $440,123 $477,286
7 $37,907 $448,926 $486,832
8 $38,665 $457,904 $496,569
9 $39,438 $467,062 $506,500
10 $40,227 $476,403 $516,630
11 $41,031 $485,931 $526,963
12 $41,852 $495,650 $537,502
13 $42,689 $505,563 $548,252
14 $43,543 $515,674 $559,217
15 $44,414 $525,988 $570,401
16 $45,302 $536,508 $581,809
Total $593,738 $7,031,601 $7,625,340
Costs of providing county services to new residents:
Costs of Costs of
County County
Services: Services:
Year New Residents Businesses Total
1$0 $0 $0
2 $38,148 $452,036 $490,184
3 $38,911 $461,077 $499,988
4 $39,689 $470,299 $509,988
5 $40,483 $479,705 $520,188
6 $41,293 $489,299 $530,591
7 $42,118 $499,085 $541,203
8 $42,961 $509,066 $552,027
9 $43,820 $519,248 $563,068
10 $44,696 $529,633 $574,329
11 $45,590 $540,225 $585,816
12 $46,502 $551,030 $597,532
13 $47,432 $562,051 $609,483
14 $48,381 $573,292 $621,672
15 $49,349 $584,757 $634,106
16 $50,335 $596,453 $646,788
Total $659,709 $7,817,255 $8,476,964
Page 43
APPENDIX C
Costs and Benefits for Larimer County ‐ Continued
Net Benefits for the County:
Cumulative
Net Net
Year Benefits Costs Benefits Benefits
1 $535,871 $0 $535,871 $535,871
2 $1,054,909 ($490,184) $564,725 $1,100,595
3 $909,067 ($499,988) $409,079 $1,509,675
4 $903,307 ($509,988) $393,319 $1,902,994
5 $897,770 ($520,188) $377,582 $2,280,576
6 $892,460 ($530,591) $361,869 $2,642,445
7 $887,384 ($541,203) $346,181 $2,988,625
8 $882,545 ($552,027) $330,518 $3,319,143
9 $877,949 ($563,068) $314,881 $3,634,024
10 $875,872 ($574,329) $301,542 $3,935,566
11 $888,266 ($585,816) $302,450 $4,238,017
12 $900,919 ($597,532) $303,387 $4,541,404
13 $913,836 ($609,483) $304,353 $4,845,756
14 $927,021 ($621,672) $305,349 $5,151,105
15 $940,482 ($634,106) $306,376 $5,457,481
16 $954,223 ($646,788) $307,435 $5,764,916
Total $14,241,881 ($8,476,964) $5,764,916
Page 44
APPENDIX C
Costs and Benefits for Poudre School District
Benefits:
Property tax collections:
Firm Property*
New Real Prop. Business Real Prop. Business Total Taxes
Residential Taxes Prop. Taxes Taxes Prop. Taxes After
Year Property Collected Collected Abated Abated Abatement Total
1 $0 $317,009 $55,155 $0 $0 $372,164 $372,164
2 $21,811 $570,227 $394,923 $0 $0 $965,150 $986,961
3 $21,811 $570,227 $354,879 $0 $0 $925,106 $946,917
4 $21,811 $570,227 $314,835 $0 $0 $885,062 $906,874
5 $21,811 $570,227 $274,791 $0 $0 $845,019 $866,830
6 $21,811 $570,227 $234,747 $0 $0 $804,975 $826,786
7 $21,811 $570,227 $194,704 $0 $0 $764,931 $786,742
8 $21,811 $570,227 $154,660 $0 $0 $724,887 $746,698
9 $21,811 $570,227 $114,616 $0 $0 $684,843 $706,654
10 $21,811 $570,227 $80,088 $0 $0 $650,315 $672,126
11 $21,811 $570,227 $80,088 $0 $0 $650,315 $672,126
12 $21,811 $570,227 $80,088 $0 $0 $650,315 $672,126
13 $21,811 $570,227 $80,088 $0 $0 $650,315 $672,126
14 $21,811 $570,227 $80,088 $0 $0 $650,315 $672,126
15 $21,811 $570,227 $80,088 $0 $0 $650,315 $672,126
16 $21,811 $570,227 $80,088 $0 $0 $650,315 $672,126
Total $327,168 $8,870,419 $2,653,923 $0 $0 $11,524,343 $11,851,510
* Net of 50% property tax increment shareback with Downtown Development Authority.
Additional State and Federal school funding received:
Additional
State & Federal
School
Year Funding
1$0
2 $329,829
3 $339,724
4 $349,916
5 $360,413
6 $371,226
7 $382,363
8 $393,833
9 $405,648
10 $417,818
11 $430,352
12 $443,263
13 $456,561
14 $470,258
15 $484,365
16 $498,896
Total $6,134,467
Page 45
APPENDIX C
Costs and Benefits for Poudre School District
Costs:
Costs of educating children of new workers who move to the district:
Cost of
Educating
New
Year Students
1$0
2 $324,063
3 $333,785
4 $343,799
5 $354,113
6 $364,736
7 $375,678
8 $386,949
9 $398,557
10 $410,514
11 $422,829
12 $435,514
13 $448,580
14 $462,037
15 $475,898
16 $490,175
Total $6,027,228
Net Benefits for the School District:
Net Cumulative
Year Benefits Costs Benefits Net Benefits
1 $372,164 $0 $372,164 $372,164
2 $1,316,791 ($324,063) $992,727 $1,364,892
3 $1,286,642 ($333,785) $952,856 $2,317,748
4 $1,256,789 ($343,799) $912,991 $3,230,738
5 $1,227,243 ($354,113) $873,130 $4,103,869
6 $1,198,012 ($364,736) $833,275 $4,937,144
7 $1,169,105 ($375,678) $793,426 $5,730,570
8 $1,140,532 ($386,949) $753,583 $6,484,153
9 $1,112,303 ($398,557) $713,746 $7,197,899
10 $1,089,944 ($410,514) $679,430 $7,877,329
11 $1,102,479 ($422,829) $679,649 $8,556,978
12 $1,115,389 ($435,514) $679,875 $9,236,853
13 $1,128,687 ($448,580) $680,107 $9,916,961
14 $1,142,384 ($462,037) $680,347 $10,597,308
15 $1,156,492 ($475,898) $680,593 $11,277,901
16 $1,171,023 ($490,175) $680,848 $11,958,749
Total $17,985,977 ($6,027,228) $11,958,749
Page 46
APPENDIX C
Benefits for Downtown Development Authority (DDA)
Property tax collections:
Firm Property ‐ DDA Mill Real Prop. Tax BPP Tax
Real Prop. Business Increment Increment
Taxes Prop. Taxes Shareback Shareback
Year Collected Collected Revenue Revenue Total
1 $57,969 $10,086 $597,774 $103,994 $769,822
2 $104,273 $72,216 $1,075,254 $744,616 $1,996,360
3 $104,273 $64,894 $1,075,254 $669,115 $1,913,536
4 $104,273 $57,571 $1,075,254 $593,613 $1,830,712
5 $104,273 $50,249 $1,075,254 $518,112 $1,747,888
6 $104,273 $42,926 $1,075,254 $442,610 $1,665,063
7 $104,273 $35,604 $1,075,254 $367,108 $1,582,239
8 $104,273 $28,281 $1,075,254 $291,607 $1,499,415
9 $104,273 $20,959 $1,075,254 $216,105 $1,416,591
10 $104,273 $14,645 $1,075,254 $151,003 $1,345,175
11 $104,273 $14,645 $1,075,254 $151,003 $1,345,175
12 $104,273 $14,645 $1,075,254 $151,003 $1,345,175
13 $104,273 $14,645 $1,075,254 $151,003 $1,345,175
14 $104,273 $14,645 $1,075,254 $151,003 $1,345,175
15 $104,273 $14,645 $1,075,254 $151,003 $1,345,175
16 $104,273 $14,645 $1,075,254 $151,003 $1,345,175
Total $1,622,064 $485,302 $16,726,584 $5,003,902 $23,837,852
* Property tax increment shareback revenue includes 100% of the city's property increment tax revenue
and 50% of the other taxing districts property increment tax revenue
Costs:
Costs to the Organization:
Costs to the
Downtown
Development
Year Authority
1 $232,636
2 $324,164
3 $324,164
4 $324,164
5 $324,164
6 $361,979
7 $361,979
8 $361,979
9 $361,979
10 $361,979
11 $361,979
12 $361,979
13 $361,979
14 $361,979
15 $361,979
16 $361,979
Total $5,511,061
Page 47
APPENDIX C
Costs and Benefits for Downtown Development Authority (DDA)
Net Benefits for the Downtown Development Authority:
Net Cumulative
Year Benefits Costs Benefits Net Benefits
1 $769,822 ($232,636) $537,186 $537,186
2 $1,996,360 ($324,164) $1,672,196 $2,209,382
3 $1,913,536 ($324,164) $1,589,372 $3,798,754
4 $1,830,712 ($324,164) $1,506,548 $5,305,301
5 $1,747,888 ($324,164) $1,423,724 $6,729,025
6 $1,665,063 ($361,979) $1,303,084 $8,032,109
7 $1,582,239 ($361,979) $1,220,260 $9,252,370
8 $1,499,415 ($361,979) $1,137,436 $10,389,806
9 $1,416,591 ($361,979) $1,054,612 $11,444,418
10 $1,345,175 ($361,979) $983,196 $12,427,614
11 $1,345,175 ($361,979) $983,196 $13,410,811
12 $1,345,175 ($361,979) $983,196 $14,394,007
13 $1,345,175 ($361,979) $983,196 $15,377,203
14 $1,345,175 ($361,979) $983,196 $16,360,399
15 $1,345,175 ($361,979) $983,196 $17,343,595
16 $1,345,175 ($361,979) $983,196 $18,326,791
Total $23,837,852 ($5,511,061) $18,326,791
Note: The Downtown Development Authority provided the estimate of its costs and benefits.
Page 48
iTRA Global® | Commercial Real Estate, LLC
Commercial Real Estate, Development and Investment Services
118 North Tejon Street, Suite 205, Colorado Springs, CO 80903
Tel: 719.886.6534 Fax: 719.886.6537
www.NLdevelopment.com
www.ITRAcre.com
info@NLDevelopment.com
March 12, 2013
Mr. Bruce Hendee - via e-mail
Chief Sustainability Officer
City of Fort Collins
300 LaPorte Ave
Fort Collins, CO 80522
RE: Platte River Transmission Relocation on Link-N-Green
Potential Woodward Development Site
Dear Mr. Hendee:
As you know, the Light and Power Operations Department has been working, in conjunction with Platte
River Power Authority (Platte River), and the Woodward development team to relocate the Platte River
transmission power line on North Lemay from Lincoln through the Link-N-Green golf course and across
the Mulberry intersection. The impetus for the relocation is to enable development of the Link-N-Greens
golf course property into a new corporate headquarters and manufacturing campus for Woodward, Inc.
Over the past several months, multiple relocation scenarios have been evaluated considering; cost,
construction schedule, environmental and community impacts. The engineering teams analyzed six
underground and four overhead scenarios with varying cost and schedule impacts to Woodward. The
primary concerns with the undergrounding scenarios were higher cost and visual impact to the
surrounding business owners of locating the riser poles necessary to transition between the overhead and
underground cables.
Of the four overhead alternatives, two have potentially viable characteristics that would meet the cost and
schedule requirements for parcel development. Both options have approximately equal cost and
schedules. Woodward, the City and the Platte River teams prefer the overhead relocation option which
parallels Lemay, because it provides the best overall solution to Woodward and the surrounding
community. The preferred option will be presented to the Land Conservation and Stewardship Board on
March 13th. This option will eliminate two existing poles within the Springer Natural Area and a third
pole on a CDOT property east of the Waste Water Treatment Facility which is anticipated to be conveyed
to the City. Also this option will remove approximately 1,500 linear feet of existing overhead
transmission line from the Springer Natural Area beginning just north of the Poudre River on Lemay.
On behalf of Woodward as their development representative, I would like to thank the City of Fort
Collins and the Platte River teams for their collaboration and extensive work done on this project.
Sincerely,
NEXT LEVEL DEVELOPMENT, INC.
Wayne M. Timura, P.E.
Principal
ATTACHMENT 8
ORDINANCE NO. 055, 2013
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING AND APPROVING THE EXECUTION AND
DELIVERY BY THE CITY OF AN AGREEMENT WITH
WOODWARD, INC., AND RELATED DOCUMENTS,
INCLUDING AUTHORIZING THE ISSUANCE OF A BOND,
IN CONNECTION WITH AN ECONOMIC DEVELOPMENT
PROJECT RELATING TO WOODWARD, INC.; AND
PROVIDING OTHER MATTERS RELATED THERETO.
WHEREAS, the City of Fort Collins, Colorado (the “City”) is a home rule
municipality and political subdivision of the State of Colorado (the “State”) organized and
existing under a home rule charter (the “Charter”) pursuant to Article XX of the Constitution of
the State; and
WHEREAS, Woodward, Inc. (the “Company”) is a publicly traded industrial
manufacturing company with an approximate market capitalization of $2.7 billion dollars; and
WHEREAS, the Company’s headquarters are currently located in the City at 1000
East Drake Road, Fort Collins, Colorado; and
WHEREAS, the Company has had a long and successful presence in the City for
nearly 60 years; and
WHEREAS, the Company directly employs approximately 1400 people within
Northern Colorado, many of whom are employed at the Company’s headquarters within the City
and many of whom live within the City; and
WHEREAS, the Company’s operations in the City and Northern Colorado
provide significant economic benefits to the City by employing a large number of high-skilled
employees who live, work, and shop in the City, and by contributing to a vibrant and diverse
local economy; and
WHEREAS, the Company’s operations in the City and Northern Colorado
generate a substantial amount of tax revenue for the City, both directly as a business through
vendors and suppliers, and indirectly through the Company’s labor force and residents; and
WHEREAS, the Company is considering relocating its headquarters and
expanding its manufacturing and office facilities to one of several potential locations, including
locations outside of the City; and
WHEREAS, one of the potential sites is approximately 101.5 acres of real
property located in the City south of East Lincoln Avenue and north of Mulberry Street between
Lemay Avenue and Riverside Avenue (the “Property”); and
WHEREAS, the Property is located in the Plan of Development Area of The Fort
Collins, Colorado, Downtown Development Authority (the “Authority”); and
WHEREAS, in light of certain negotiations with the City and the Authority,
among other considerations, the Company has proposed constructing and installing a new
campus on the Property (the “Project”), as more particularly described in a Project Development
Plan that has been approved by the City; and
WHEREAS, the Project is a valuable urban infill project that furthers the
objectives set forth in the City’s long-range comprehensive plan, including the contribution of
high-skilled employment opportunities, tax revenue, and infrastructure improvements to the
City’s urban core; and
WHEREAS, the retention of existing business and employment in the City is the
top priority of the City’s Economic Health Strategic Plan, which has been adopted by the City
Council; and
WHEREAS, the City’s Economic Health Office has concluded that the Project
will generate a substantial increase in tax revenue for the City; and
WHEREAS, according to the Economic Health Office, the Project will prevent
high-paying primary jobs from leaving the City to other sites in Northern Colorado and
elsewhere; and
WHEREAS, the Company has requested that the City and the Authority enter into
an Agreement with Woodward, Inc. (the “Agreement”) for economic development related to the
Project; and
WHEREAS, in order to encourage the Project, the City Council has determined
and hereby determines that it is in the best interests of the City to enter into the Agreement; and
WHEREAS, subject to the terms and provisions of the Agreement, the Company
has agreed to fund the design, acquisition, construction and installation of the Improvement
Projects (as defined in the Agreement) up to a maximum amount of $6,050,000, and the City has
agreed to reimburse Woodward for such expenditures and the applicable interest thereon (the
“Reimbursement Amount”) with available Pledged Tax Increment Revenues (as defined therein)
generated from the Project; and
WHEREAS, the City will issue a bond (the “Bond”) to evidence the
Reimbursement Amount, and the Bond shall be issued in substantially the form set forth as an
Exhibit to the Agreement; and
WHEREAS, the issuance of the Bond has been authorized by an election held in
the City on Tuesday, November 7, 2006 at which a majority of the qualified electors of the area
described in the Plan of Development authorized the City to issue bonds, notes, contracts or
other financial obligations in an amount not to exceed $150,000,000 to finance the costs of
development projects to be undertaken by or on behalf of the Authority, with such debt to be
payable solely from and secured by a pledge of ad valorem property tax increment revenues
levied and collected within the boundaries of the Authority; and
WHEREAS, the Bond will be a special and limited obligation of the City payable
from the Pledged Tax Increment Revenues, and the Bond will not constitute a general obligation
of the City and the full faith and credit of the City will not be pledged to pay the debt service
requirements of the Bond; and
WHEREAS, in connection with the execution and delivery of the Agreement, the
City will enter into an Intergovernmental Agreement for the Design and Relocation of Platte
River Power Authority Transmission Facilities with Platte River Power Authority (the
“Transmission Line IGA”) in substantially the form attached as an Exhibit to the Agreement; and
WHEREAS, the City Council has determined and hereby determines that entering
into the Agreement, the Transmission Line IGA and issuing the Bond, will serve the important
public purposes of maintaining and increasing employment in the City, stabilizing and improving
the long term tax base of the City, and providing additional economic health benefits to the City;
and
WHEREAS, there has been presented to the City Council and are on file with the
City Clerk the proposed form of the Agreement, including without limitation, the proposed form
of the Bond and the Transmission Line IGA attached as Exhibits thereto; and
WHEREAS, capitalized terms used herein and not otherwise defined shall have
the meanings set forth in the Agreement; 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 City, may elect in an act of issuance to apply all or
any of the provisions of the Supplemental Act.
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS,
COLORADO:
Section 1. Ratification and Approval of Prior Actions. All action heretofore
taken (not inconsistent with the provisions of this Ordinance) by the City Council or the officers,
agents or employees of the City Council or the City relating to the development of the Project,
the execution and delivery of the Agreement, and the performance of the City’s obligations
under the Agreement and related documents is hereby ratified, approved and confirmed.
Section 2. Finding of Best Interests and Public Purpose. The City Council
hereby finds and determines, pursuant to the Constitution, the laws of the State, the Charter and
the Code of the City, that entering into the Agreement, the Transmission Line IGA, and issuing
the Bond in connection therewith, 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 purposes of maintaining and increasing employment in the City, stabilizing and improving
the long term tax base of the City, and providing additional economic health benefits to the City,
and the City Council hereby authorizes and approves the same.
Section 3. Supplemental Act. The City Council hereby elects to apply all of
the Supplemental Act to the Bond.
Section 4. Approval of Documents. The Agreement, the Bond, and the
Transmission Line IGA (collectively, the “City Documents”), in substantially the forms on file
with the City Clerk, are in all respects approved, authorized and confirmed. The Mayor of the
City is hereby authorized and directed to execute and deliver the City Documents, for and on
behalf of the City, in substantially the forms and with substantially the same contents as on file
with the City Clerk, provided that such documents may be completed, corrected or revised as
deemed necessary by the parties thereto in order to carry out the purposes of this Ordinance. The
execution of the City Documents by the Mayor shall be conclusive evidence of the approval by
the City Council of such documents in accordance with the terms hereof and thereof.
Section 5. Direction to Act. 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 Ordinance and to place the seal of the City on any document authorized and
approved by this Ordinance. 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 Ordinance. The approval hereby given to the various documents
referred to above includes an approval of such additional details therein as may be necessary and
appropriate for their completion, deletions therefrom and additions thereto as may be approved
by the City Manager or the Financial Officer prior to the execution of the documents. The
execution of any instrument by the aforementioned officers or members of the City Council shall
be conclusive evidence of the approval by the City of such instrument in accordance with the
terms hereof and thereof.
Section 6. No General Obligation Debt. No provision of this Ordinance, the
Agreement or the Bond shall be construed as creating or constituting a general obligation
indebtedness of the City within the meaning of any constitutional, statutory or Charter provision
and the full faith and credit of the City shall not be pledged to pay the debt service requirements
of the Bond.
Section 7. No Recourse against Officers and Agents. Pursuant to Section 11-
57-209 of the Supplemental Act, if a member of the City Council, or any officer or agent of the
City acts in good faith, no civil recourse shall be available against such member, officer, or agent
for payment of the principal or interest on the Bond. Such recourse shall not be available either
directly or indirectly through the City Council or the City, or otherwise, whether by virtue of any
constitution, statute, rule of law, enforcement of penalty, or otherwise. By the acceptance of the
Bond, and as a part of the City’s consideration for issuing the Bond, the Company specifically
waives any such recourse.
Section 8. Severability. If any section, subsection, paragraph, clause or
provision of this Ordinance 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
Ordinance or such documents, the intent being that the same are severable.
Section 9. Repealer. All orders, resolutions, bylaws, ordinances or
regulations of the City, or parts thereof, inconsistent with this Ordinance are hereby repealed to
the extent only of such inconsistency.
Section 10. Charter. Pursuant to Article XX of the State Constitution and the
Charter, all State statutes that might otherwise apply in connection with the provisions of this
Ordinance are hereby superseded to the extent of any inconsistencies between the provisions of
this Ordinance and such statutes. Any such inconsistency is intended by the City Council and
shall be deemed made pursuant to the Charter.
Introduced, considered favorably on first reading and ordered published this 26th
day of March, 2013, and to be presented for final passage on the 2nd day of April, A.D. 2013.
CITY OF FORT COLLINS, COLORADO
Mayor
(SEAL)
ATTESTED:
City Clerk
PUBFIN/1630821.2
Passed and adopted, without amendment, on final reading this 2nd day of April,
A.D. 2013.
CITY OF FORT COLLINS, COLORADO
Mayor
(SEAL)
ATTESTED:
City Clerk
1
AGREEMENT WITH WOODWARD, INC.
THIS AGREEMENT WITH WOODWARD, INC. (this “Agreement”) is entered into this
___ day of _________, 2013, by and among the City of Fort Collins, Colorado, a home rule
municipal corporation (the “City”), The Fort Collins, Colorado, Downtown Development
Authority, a duly organized and existing downtown development authority under the
Constitution and laws of the State of Colorado, including, particularly, Title 31, Article 25,
Part 8, Colorado Revised Statutes, as amended (the “Authority”), and Woodward, Inc., a
Delaware corporation (“Woodward” or the “Company”).
RECITALS
WHEREAS, the City is a home rule municipality and political subdivision of the State of
Colorado (the “State”) organized and existing under a home rule charter (the “Charter”) pursuant
to Article XX of the Constitution of the State; and
WHEREAS, pursuant to Ordinance No. 46, 1981, the City has heretofore established the
Authority, a duly organized and existing downtown development authority under the
Constitution and laws of the State of Colorado, including, particularly, Title 31, Article 25,
Part 8, Colorado Revised Statutes, as amended (the “Downtown Development Authority Act”)
and has approved the Plan of Development of the Authority (the “Plan of Development”)
pursuant to Resolution 81-129 of the City, as amended; and
WHEREAS, the Plan of Development contains a provision for division of taxes as
authorized by the Downtown Development Authority Act effective for thirty (30) years
beginning September 8, 1981, and pursuant to Ordinance No. 101, 2008, the City approved a
twenty (20) year extension of such period under the authority of the Downtown Development
Authority Act; and
WHEREAS, the Company is a publicly traded industrial manufacturing company with an
approximate market capitalization of $2.7 billion dollars as of the date of this Agreement; and
WHEREAS, the Company’s headquarters are currently located in the City at 1000 East
Drake Road, Fort Collins, Colorado; and
WHEREAS, the Company has had a long and successful presence in the City for nearly
60 years; and
WHEREAS, the Company directly employs approximately 1400 people within Northern
Colorado, many of whom are employed at the Company’s headquarters within the City and
many of whom live within the City; and
WHEREAS, the Company’s operations in the City and Northern Colorado provide
significant economic benefits to the City by employing a large number of high-skilled employees
EXHIBIT A
2
who live, work, and shop in the City, and by contributing to a vibrant and diverse local
economy; and
WHEREAS, the Company’s operations in the City and Northern Colorado generate a
substantial amount of tax revenue for the City, both directly as a business through vendors and
suppliers, and indirectly through the Company’s labor force and residents; and
WHEREAS, the Company has been, and seeks to remain, a leader of innovation, with a
stated mission of “Always innovating for a better future,” and active participation in the City’s
ClimateWise program, as well as local Clean Energy Cluster efforts; and
WHEREAS, the Company is considering relocating its headquarters and expanding its
manufacturing and office facilities to one of several potential locations, including locations
outside of the City; and
WHEREAS, one of the potential sites is approximately 101.5 acres of real property
located in the City south of East Lincoln Avenue and north of Mulberry Street between Lemay
Avenue and Riverside Avenue, and more particularly described in Exhibit A of this Agreement
(the “Property”); and
WHEREAS, the Property is located in the Authority’s Plan of Development Area (as
hereinafter defined); and
WHEREAS, in light of certain negotiations with the City and the Authority, among other
considerations, the Company has proposed constructing and installing a new campus on the
Property (the “Project”), as more particularly described in the Project Development Plan
(hereinafter defined) that has been approved by the City; and
WHEREAS, the Project is a valuable urban infill project that furthers the objectives set
forth in the City’s long-range comprehensive plan, including the contribution of high-skilled
employment opportunities, tax revenue, and infrastructure improvements to the City’s urban
core; and
WHEREAS, the retention of existing business and employment in Fort Collins is the top
priority of the City’s Economic Health Strategic Plan, which has been adopted by the City
Council; and
WHEREAS, the City’s Economic Health Office has concluded that the Project will
generate a substantial increase in tax revenue for the City; and
WHEREAS, according to the Economic Health Office, the Project will prevent high-
paying primary jobs from leaving the City to other sites in Northern Colorado and elsewhere;
and
WHEREAS, Woodward has requested that the City enter into this Agreement for
economic development related to the Project; and
3
WHEREAS, in order to encourage the Project, the City Council has determined that it is
in the best interests of the City to enter into this Agreement which provides, among other things,
the following components:
(a) Woodward will fund the design, acquisition, construction and installation of the
Improvement Projects (as hereinafter defined) up to a maximum amount of $6,050,000
(the “Maximum Funding Amount”) in accordance with this Agreement;
(b) Woodward will be reimbursed for such expenditures on the Improvement
Projects, with interest thereon (the “Reimbursement Amount”), from the proceeds of the
Pledged Tax Increment Revenues (as hereinafter defined) generated by the Project, in
accordance with this Agreement, and the City will issue a bond (the “Bond”) to evidence
the Reimbursement Amount;
(c) the City shall rebate or reimburse Woodward for the following fees and revenues
paid by Woodward to the City in connection with the Project:
(i) reimburse or rebate up to 80% of the new City use tax revenues
received for Eligible Equipment (hereinafter defined) and Construction Materials
(hereinafter defined) for the Project (the “Use Tax Rebate”);
(ii) reimburse or rebate up to 100% of the Development Fees
(hereinafter defined) received in connection with the Project (collectively, the
“Development Fee Rebates”); and
(iii) reimburse or rebate up to 50% of the Capital Improvement Fees
(hereinafter defined) received in connection with the Project (collectively, the
“Capital Improvement Fee Rebates”); and
WHEREAS, in order to encourage the Project and to further the Plan of Development,
the Board of Directors of the Authority (the “Board”) has determined that the Authority shall
enter into the Façade Easement Agreement (hereinafter defined) with Woodward whereby the
Authority will agree to purchase easements from Woodward over eligible facades of buildings
within the Project (the “Façade Easements”) from a portion of the Pledged Tax Increment
Revenues and has further determined that a portion of the Pledged Tax Increment Revenues shall
be applied to payment of the Reimbursement Amount, in accordance with the terms and
provisions set forth herein; and
WHEREAS, the Authority has determined that entering into the Façade Easement
Agreement and this Agreement is consistent with and in furtherance of the purposes of the
Authority and is consistent with the Downtown Development Authority Act; and
WHEREAS, the Authority has determined that the addition of the Property into the
District will provide significant economic benefits to the City and downtown through the
Company's operations in the City and Northern Colorado and thus further the objectives and
purposes of the Authority as contained in the Plan of Development, and pursuant to Resolution
2013-01, the Authority has recommended approval of the inclusion of such Property into the
4
District, which inclusion was unanimously approved by the City pursuant to Ordinance No. 049,
2013; and
WHEREAS, the City Council has further determined that entering into this Agreement
with Woodward will serve the important public purposes of maintaining and increasing
employment in the City, stabilizing and improving the long term tax base of the City, and
providing additional economic health benefits to the City.
NOW, THEREFORE, in consideration of the promises contained in this Agreement, and
other good and valuable consideration, the receipt and adequacy of which is hereby
acknowledged, the parties hereto agree as follows.
SECTION 1. DEFINITIONS. For purposes of this Agreement, capitalized terms used herein
and not otherwise defined herein shall have the meanings set forth below:
“Application for Use Tax Rebate” means the application process for a Use Tax Rebate using
City approved forms consistent with the form attached as Exhibit K hereto and by this reference
made a part hereof.
“Authority” means The Fort Collins, Colorado, Downtown Development Authority, a duly
organized and existing downtown development authority under the Constitution and laws of the
State of Colorado, including, particularly, Title 31, Article 25, Part 8, Colorado Revised Statutes,
as amended.
“Authority’s Unrestricted Available Fund Balance” means that fund balance required in
accordance with the policy adopted by the Board on October 13, 2011, whereby at the beginning
of each fiscal year, an amount equal to the minimum of one-half of each year’s current debt
payments is reserved.
“Board” means the Board of Directors of the Authority.
“Bond” means the Bond to be issued hereunder duly executed on behalf of City in substantially
the form attached hereto as Exhibit J attached hereto and by this reference made a part hereof,
payable to the order of Company in a principal amount of not more than the Maximum Funding
Amount plus any compound interest.
“Bond Year” means the twelve (12) months commencing on the second day of December of any
calendar year and ending on the first day of December of the next succeeding calendar year.
“Capital Improvement Fees” means, collectively, the following fees received by the City in
connection with all or any portion of the Project:
(a) the Capital Improvement Expansion Fees imposed pursuant to
Chapter 7.5, Article V of the City Code, including (i) the Community Parkland
Capital Improvement Expansion Fee, (ii) the Police Capital Improvement
Expansion Fee, (iii) the Fire Protection Capital Improvement Expansion Fee, (iv)
the General Government Capital Improvement Expansion Fee, and (v) the Street
Oversizing Capital Improvement Expansion Fee;
5
(b) the Water Plant Investment Fee imposed pursuant to Section 26-
120 of the City Code;
(c) the Sewer Plant Investment Fee imposed pursuant to Sections 26-
283 to 284 of the City Code;
(d) the Electric Development Fees imposed pursuant to Sections 26-
473 and 475 of the City Code; and
(e) the Stormwater Plant Investment Fees imposed pursuant to Section
26-512 of the City Code.
“Capital Improvement Fee Rebate” means the rebate of up to 50% of the Capital Improvement
Fees to Woodward in accordance with Section 6 of this Agreement.
“Charter” means the Home Rule Charter of the City.
“City” means the City of Fort Collins, Colorado, a home rule municipal corporation.
“City Code” means the Code of the City of Fort Collins.
“City Council” means the City Council of the City.
“Completed” means, when used in reference to a Phase of the Project, eligible for a temporary or
final certificate of occupancy under the City Code.
“Construction Materials” means the materials purchased in connection with the construction of
the Project, or any portion of the Project.
“Development Agreement” means that agreement required in connection with the Project or any
portion of the Project, as described in the Project Development Plan and pursuant to the Land
Use Code.
“Development Fees” means, collectively, the building permit fees, development review fees,
transportation development review fees, and planning review fees received by the City in
connection with the Project or any portion of the Project.
“Development Fee Rebates” means the rebate of up to 100% of the Development Fees to
Woodward in accordance with Section 6 of this Agreement.
“District” means the area described in the Plan of Development and approved by Ordinance No.
46, 1981, of the City, as amended by Ordinance No. 162, 1981, of the City and Ordinance No. 2,
1983, of the City, and as has heretofore been or as may hereafter be amended by valid legislative
action of the City as may be determined in accordance with the decisions of the appellate courts
of the State.
“Downtown Development Authority Act” means Title 31, Article 25, Part 8, Colorado Revised
Statutes, as amended.
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“Eligible Equipment” means manufacturing equipment newly acquired by Woodward for
installation in or delivery to the Property and incorporation into the Project, in the maximum
aggregate amount of $50.5 million. All Eligible Equipment must be identified at the time of
purchase as, and be documented as necessary for the Project to the satisfaction of the City, and
must be newly installed and located within the Project.
“Estimate of Value” means the Larimer County Assessor’s Estimate of Value Worksheet dated
January 29, 2013 relating to the Property and attached hereto as Exhibit E and by this reference
made a part hereof.
“Façade Easement Agreement” means the agreement between the Authority and Woodward
relating to the Façade Easements in substantially the form set forth in Exhibit I attached hereto
and by this reference made a part hereof.
“Façade Easements” means those easements purchased by the Authority from Woodward, with a
maximum total purchase price for all such easements of $3.8 million, over eligible facades of
buildings within the Project in accordance with the terms and conditions of the Façade Easement
Agreement.
“Improvement Projects” means, collectively, the Transmission Line Relocation, the Right of
Way Improvements and the Open Space Improvements.
“Land Use Code” means the Fort Collins Land Use Code.
“Line of Credit” means that line of credit described in Ordinance No. 089, 2012 of the City,
approved on September 18, 2012, authorizing the establishment of a line of credit to be funded
solely from available Authority tax increment revenues for a period of six (6) years (and subject
to renewal thereafter) to finance Authority projects.
“Manufacturing Equipment Use Tax Rebate Program or Program” means the program for
generally available limited rebate of use taxes for manufacturing equipment, as described in
Chapter 8 of the City Code.
“Maximum Funding Amount” means the amount of $6,050,000, which shall be the maximum
amount of funding that Woodward provides for the design, construction, acquisition and
installation of the Improvement Projects.
“Open Space Improvements” means the improvements to be made to the Open Space Property,
as more specifically set forth in Section 4.1(b) hereof and Exhibit G attached hereto and by this
reference made a part hereof.
“Open Space Property” means the property to be conveyed by Woodward to the City, as
described in Exhibit B attached hereto and by this reference made a part hereof, which is
approximately 31 acres adjacent to the Cache La Poudre River.
“Phase One” has the meaning set forth on the Phasing Schedule.
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“Phase Two” has the meaning set forth on the Phasing Schedule.
“Phase Three” has the meaning set forth on the Phasing Schedule.
“Phase Four” has the meaning set forth on the Phasing Schedule.
“Phasing Schedule” means the schedule for the acquisition, construction and installation of the
Project in accordance with the Project Development Plan, attached hereto as Exhibit D and by
this reference made a part hereof.
“Plan of Development” means the Plan of Development for the Authority, as amended from time
to time, approved by the Board and the City Council in accordance with the Downtown
Development Authority Act.
“Plan of Development Area” means an area in the central business district of the City that the
Board and the City Council have designated as appropriate for a development project.
“Pledged Tax Increment Revenues” means 100% of the Authority’s statutory share of the real
property tax increment attributable to construction of buildings and implementation of uses
within the Project capped at the values shown in the Estimate of Value Worksheet and based on
the Phasing Schedule. Exhibit E-1 illustrates how calculations of available Pledged Tax
Increment Revenues will be made based on the Estimate of Value Worksheet and the Phasing
Schedule.
“Project” means the acquisition, construction and installation of the Company’s headquarters,
manufacturing and office facilities on the Property, as more specifically described on Exhibit C
attached hereto and by this reference made a part hereof. The definition of “Project” does not
include the area marked on Exhibit C and designated as “Future Commercial Project.”
“Project Development Plan” means the plan for the development of the Project approved by the
City.
“Property” means the real property described in Exhibit A attached hereto and by this reference
made a part hereof.
“Reimbursement Amount” means the obligation of the City to reimburse Woodward for the
funding of the Improvement Projects, including interest thereon, in accordance with the terms
and provisions of this Agreement. The Reimbursement Amount shall be evidenced by the Bond
to be issued by the City pursuant to the authority conferred at the 2006 Election.
“Right of Way Improvements” means the right of way improvements to Lemay Avenue and
Lincoln Avenue as more specifically set forth in Section 4.1(a) hereof and as set forth in Exhibit
C attached hereto.
“Senior Lien Documents” means, collectively, the documents executed and delivered in
connection with the issuance of the Senior Lien Securities.
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“Senior Lien Securities” means, collectively, (a) the City of Fort Collins, Colorado, Downtown
Development Authority Taxable Tax Increment Revenue Bonds, Series 2010A, (b) the City of
Fort Collins, Colorado, Downtown Development Authority Tax-Exempt Tax Increment Revenue
Bonds, Series 2010B, (c) the Line of Credit, (d) all other bonds, warrants, notes, securities, leases
or other contracts having a lien on the Pledged Tax Increment Revenues that is senior or superior
to the lien of the Bond, and (e) the Authority’s obligation for the 2007 City of Fort Collins Lease
Certificates of Participation for the Civic Center Facilities Project.
“Subordinate Lien Bonds” means any bond, warrants, notes, securities, leases or other contracts
evidencing borrowings and payoffs from the Pledged Tax Increment Revenues having a lien
thereon subordinate or junior to the lien of the Bond.
“Supplemental Public Securities Act” means Part 2 of Article 57, Title 11, C.R.S.
“Tax Increment Fund” means the special fund created in Ordinance No. 142, 1985, of the City
designated therein as the “City of Fort Collins, Colorado, Downtown Development Authority
Tax Increment Bonds, Bond Fund.”
“Tax Increment Period” means the period of time during which the Authority is authorized under
State law to collect tax increment revenues from the Property. As of the date of this Agreement,
the Tax Increment Period terminates on December 31, 2031.
“Tax Increment Revenues” means all revenues derived in each Fiscal Year from the levy of ad
valorem taxes at the rate fixed each year by or for each public body having taxing power over the
property upon that portion of the valuation for assessment of the property within the boundaries
of such public body that is in excess of the valuation for assessment on the date that the property
was added to the District by valid legislative action of the City, all in accordance with Section
31-25-807(3) of the Downtown Development Authority Act, less any collection fees lawfully
payable to the City or Larimer County, Colorado, for services rendered in connection with the
collection of such ad valorem taxes.
“Transmission Line IGA” means the Intergovernmental Agreement for the Design and
Relocation of Platte River Power Authority Transmission Facilities between the City and the
Platte River Power Authority, in substantially the form set forth in Exhibit H attached hereto and
by this reference made a part hereof.
“Transmission Line Relocation” means the relocation of the Transmission Lines in accordance
with the Transmission Line IGA.
“Transmission Lines” means the 230kV/115kV double circuit overhead transmission line that
crosses the Property, specifically the approximately 3600 linear feet of the line segment between
structure TP28 on the north and TR-19 on the south.
“2006 Election” means the election held in the City on Tuesday, November 7, 2006 at which a
majority of the qualified electors of the District authorized the City to issue bonds, notes,
contracts or other financial obligations in an amount not to exceed $150,000,000 to finance the
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costs of development projects to be undertaken by or on behalf of the Authority, with such debt
to be payable solely from and secured by a pledge of the special fund of the City which shall
contain ad valorem property tax increment revenues levied and collected within the boundaries
of the Authority.
“Use Tax Rebate” means the rebate of up to 80% of the Use Taxes to Woodward in accordance
with Section 6 of this Agreement.
“Use Taxes” means the Use Taxes received by the City from Woodward in connection with
Eligible Equipment and Construction Materials for the Project.
SECTION 2. REPRESENTATIONS AND COVENANTS
2.1. The City represents and covenants that:
2.1.1. The City is a home rule municipal corporation of the State of Colorado.
2.1.2. There is no litigation or administrative proceeding pending or, to the knowledge
of the City, threatened in writing, seeking to question the authority of the City to
enter into or perform this Agreement.
2.1.3. The City has the authority to enter into this Agreement, and the City Council has
duly and regularly authorized the City to execute and deliver this Agreement.
This Agreement constitutes a valid and binding obligation of the City, enforceable
according to its terms, except to the extent limited by bankruptcy, insolvency and
other laws of general application affecting creditors’ rights and by equitable
principles, whether considered at law or in equity.
2.2. The Authority represents and covenants that:
2.2.1. The Authority is a duly organized and existing downtown development authority
under the Constitution and laws of the State of Colorado, including, particularly,
the Downtown Development Authority Act.
2.2.2. There is no litigation or administrative proceeding pending or, to the knowledge
of the Authority, threatened in writing, seeking to question the authority of the
Authority to enter into or perform this Agreement or the Façade Easement
Agreement.
2.2.3. The Authority has the authority to enter into this Agreement, and the Board has
properly and regularly authorized the Authority to enter into this Agreement.
This Agreement constitutes a valid and binding obligation of the Authority,
enforceable according to its terms, except to the extent limited by bankruptcy,
insolvency and other laws of general application affecting creditors’ rights and by
equitable principles, whether considered at law or in equity.
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2.3. Woodward represents and covenants that:
2.3.1. Woodward is a corporation, duly organized and validly existing under the laws of
the State of Delaware, is authorized to do business in the State of Colorado, is not
in violation of any provisions of its organizational documents or, to its
knowledge, the laws of the State of Colorado.
2.3.2. Woodward has the power and legal right to enter into the Agreement and has duly
authorized the execution, delivery and performance of this Agreement by proper
action, which Agreement shall be enforceable against Woodward in accordance
with its terms, except to the extent limited by bankruptcy, insolvency and other
laws of general application affecting creditors’ rights and by equitable principles,
whether considered at law or in equity.
2.3.3. The consummation of the transactions contemplated by this Agreement shall not
violate any provision of the governing documents of Woodward or, to its
knowledge, constitute a default or result in the breach of any term or provision of
any contract or agreement to which Woodward is a party or by which it is bound.
2.3.4. To its knowledge, there is no litigation, proceeding, or investigation contesting the
power of authority of Woodward with respect to the Project or this Agreement or
any other agreements contemplated herein, and Woodward is unaware of that any
such litigation, proceeding, or investigation has been threatened.
2.3.5. Woodward has submitted a Project Development Plan to the City which
Woodward reasonably believes to be in accordance with all applicable procedures
set forth in the Land Use Code. Woodward shall develop the Property with
appropriate care and diligence and cause the Project to be constructed in a manner
consistent with the Project Development Plan, as approved in accordance with the
Land Use Code.
2.3.6. In developing the Property, Woodward shall comply with all applicable zoning
and land use requirements and other applicable federal, state, county, and City
statutes, rules, regulations and ordinances. Woodward agrees to comply with all
City codes, ordinances, resolutions and regulations, and to pay all taxes, fees and
expenses due to the City under the City Code, the Land Use Code or this
Agreement, subject to any variances or modifications of standards that may be
granted to Woodward under the City Code or the Land Use Code, and to comply
with the terms and conditions of the Development Agreement.
2.3.7. Woodward shall cooperate with the City in taking reasonable actions to defend
against any litigation brought by a third party concerning the Project or this
Agreement or any other agreements contemplated herein.
2.3.8. Woodward shall have the right to seek a reduction in the Project's property tax
assessed valuation and to seek an abatement of property taxes, provided that
Woodward covenants that it will not seek such a reduction or abatement to the
extent that any such reduction or abatement would result in Pledged Tax
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Increment Revenues being less than those shown on the Estimate of Value
attached hereto as Exhibit E, as adjusted to account for the Phasing Schedule
attached hereto as Exhibit D and assuming completion dates for Phase Two and
Phase Four of no later than 24 months from those shown on the Phasing Schedule.
In the event that Woodward seeks, and successfully obtains, a reduction or
abatement in the Project’s property tax assessed valuation that results in the
Pledged Tax Increment Revenues being less than such amounts, there shall be a
proportionate reduction in the Reimbursement Amount and the maximum
purchase price for the Façade Easements. Woodward shall provide written notice
to the City and to the Authority of any requested reduction in the Project's
property tax assessed valuation or abatement of the Project's property taxes. A
memorandum of this covenant shall be recorded with the Larimer County Clerk
and Recorder's Office.
SECTION 3. COMMITMENT TO PROCEED WITH PROJECT; ACQUISITION OF
PROPERTY; CONVEYANCE OF OPEN SPACE PROPERTY
3.1 On or prior to April 30, 2013, Woodward shall submit written evidence to the City and
the Authority that the Company has determined to proceed with the Project as described in the
Project Development Plan and locate its new campus headquarters on the Property. Compliance
with the provisions of this Section 3.1 shall be a condition subsequent to the City and the
Authority’s obligations hereunder.
3.2 On or prior to April 30, 2013, or such later date as may be agreed upon between
Woodward and the current owners of the Property, but in no event later than July 31, 2013,
Woodward shall acquire fee simple title to the Property and shall submit written evidence of
such purchase to the City and the Authority. Compliance with the provisions of this Section 3.2
shall be a condition subsequent to the City and the Authority’s obligations hereunder.
3.3 No later than sixty (60) days after the acquisition of the Property by Woodward, the
Company shall have entered into a purchase and sale agreement with the City to convey the
Open Space Property to the City by bargain and sale deed. The purchase and sale agreement
may establish reasonable conditions and reservations for the conveyance of the Open Space
Property to the extent required for the completion of the Project, including, without limitation,
any responsibilities to be retained by Woodward, conditions or reservations restricting the use of
such property to open space or natural areas uses, reserving to the Company certain temporary
and permanent easements and other rights of access relating to the Project, and certain permanent
rights of access to the Open Space Property for the Company and its employees. The City agrees
to make diligent efforts to complete commercially reasonable due diligence related to the Open
Space Property, and, subject to any associated adjustments, delays or conditions reasonably
required in light of issues identified in the City’s due diligence process, the City agrees to accept
title to the Open Space Property.
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SECTION 4. CONSTRUCTION AND INSTALLATION OF IMPROVEMENT
PROJECTS; FAÇADE EASEMENTS
4.1 Funding of Improvement Projects. Woodward shall fund the design, acquisition,
construction and installation of the Improvement Projects, up to the Maximum Funding Amount,
in the following order of priorities:
(a) Relocation of Transmission Lines. Woodward agrees to fund the Transmission
Line Relocation in accordance with the Transmission Line IGA. The City shall not modify or
amend the Transmission Line IGA without the prior written consent of the Company. The City
shall use its best efforts to cause the Transmission Lines to be relocated by the Platte River
Power Authority within a time frame that supports the Project development, and, if necessary to
comply with the Project schedule, shall cause the Platte River Power Authority to construct a
temporary transmission line.
(b) Right of Way Improvements. Woodward agrees to fund certain right of way
improvements to Lemay Avenue and Lincoln Avenue as required by the Land Use Code for the
Project, as more particularly described in Exhibit F attached hereto and by this reference made a
part hereof (collectively, the “Right of Way Improvements”). Unless otherwise agreed by
Woodward, the City shall design, acquire, construct and install the Right of Way Improvements,
and shall agree in good faith on a schedule acceptable to the City and Woodward.
(c) Open Space Improvements. On or prior to June 30, 2013, the City shall propose
and coordinate the design and schedule of the landscaping and habitat improvements to be
constructed on the Open Space Property in accordance with the City’s guidelines, with such
improvements to be substantially in accordance with Exhibit G attached hereto and by this
reference made a part hereof (the “Open Space Improvements”), subject to approval by the
Company, and the parties shall agree on a set of terms and conditions to be included in the deed
between Woodward and the City conveying the Open Space Property. The terms of the deed
conveying the Open Space Property to the City shall supersede any terms to the contrary in this
Section 4.1(c). Woodward shall fund the construction of the Open Space Improvements,
provided that such funding shall not exceed the Maximum Funding Amount available after
funding the Transmission Line Relocation and the Right of Way Improvements. To the extent
that the amount available from the Company to fund the Open Space Improvements is less than
$3.0 million, the City shall provide the additional funding necessary to complete the Open Space
Improvements. Unless otherwise agreed by Woodward, the City shall construct and install the
Open Space Improvements on a schedule mutually agreeable to the parties. The parties
anticipate that the Open Space Improvements will not commence before Woodward conveys the
Open Space Property to the City. The City shall not commence the Open Space Improvements
until: (a) Woodward has completed overlot grading to a 1/10th of a foot tolerance and surveyed
the site; and (b) the City has reviewed and approved the site grading as consistent with the
Conditional Letter of Map Revision approved by the Federal Emergency Management Agency
for the Open Space Property.
(d) Lincoln Boulevard Improvements. The City is currently considering the
construction of significant improvements to Lincoln Avenue in the area approximately between
the Cache la Poudre River and Lemay Avenue, as generally described in the City’s
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comprehensive plan (the “Lincoln Boulevard Improvements”). The Lincoln Boulevard
Improvements may include, but are not limited to, the construction of new or improved street
and intersections; sidewalks and benches; bicycle lanes and racks; trees and other landscaping;
gateway features similar to those at the intersection of Harmony Road and College Avenue;
transit-related infrastructure; storm water improvements; directional signage; public art and other
projects for a positive neighborhood image; and interpretive features of culture and history
relevant to the area. In addition, the City is considering long-range plans for transit services in
the Lincoln Avenue area, which may include expanded bus service, a dedicated transit “loop”
servicing the Lincoln Avenue corridor and downtown Fort Collins, or a dedicated trolley service.
The City hereby agrees to use its reasonable best efforts to complete the study of possible
designs for the Lincoln Boulevard Improvements no later than April 30, 2014.
In addition, the City Manager agrees to present a package to the City Council of
improvements to be funded by a renewal of the Building on Basics dedicated sales tax, including
a portion of the Lincoln Boulevard Improvements valued at approximately $8 million, on a
schedule to allow consideration of that measure by the voters no later than November 2014. If
approved by the voters, and if Phase One, Phase Two and Phase Four have been Completed, and
the completion of Phase Three is either in compliance with the Phasing Schedule, or no more
than 24 months delayed from the Phasing Schedule, (a) the City shall, subject to approval by the
City Council, use its reasonable best efforts to construct approximately $8.0 million of the
Lincoln Boulevard Improvements with the dedicated proceeds of the approved sales tax, and (b)
subject to the availability of Pledged Tax Increment Revenues as reasonably determined by the
City and the Board of the Authority, and subject to the approval by the Board of the Authority,
use its reasonable best efforts to apply no more than $2.85 million of any such available Pledged
Tax Increment Revenues to finance a portion of the construction of the Lincoln Boulevard
Improvements.
4.2 Façade Easements. The Authority and Woodward shall enter into the Façade Easement
Agreement in substantially the form attached hereto as Exhibit I.
4.3 Mulberry Corridor. The City shall continue its efforts to effect an annexation of the
properties along Mulberry Street between Lemay Avenue and Interstate 25, subject to the
discretion of the City Council, as applicable.
4.4 Reimbursement From Third Parties. To the extent that Woodward receives payment or
reimbursement from any other parties (but expressly excluding any State of Colorado incentive
payments or grants) to reimburse Woodward for the acquisition, construction and completion of
the Improvement Projects financed by Woodward, Woodward hereby agrees to apply any such
payment or reimbursement to reduce the Reimbursement Amount due from the City.
SECTION 5. REIMBURSEMENT AMOUNT; ISSUANCE OF BOND
5.1 Issuance of Bond. The Reimbursement Amount shall be evidenced by a Bond in
substantially the form set forth as Exhibit J attached hereto. The Bond shall not be transferable
by the Company except as set forth in Section 8 of this Agreement (provided that the City
receives evidence satisfactory to it that any such transfer complies with all applicable securities
laws) or otherwise with the prior written consent of the City.
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(a) The Bond is being issued pursuant to art. XX, §6 of the Colorado Constitution,
Art. V, Section 19.8 of the Charter, the Downtown Development Authority Act, the
Supplemental Act, and pursuant to the 2006 Election.
(b) Section 11-57-204 of the Supplemental Act provides that a public entity,
including the City, may elect in an act of issuance to apply all or any of the provisions of the
Supplemental Act to such issuance. The Council hereby elects to apply all of the Supplemental
Act to the Bond. The Bond is issued under the authority of the Supplemental Act and shall so
recite. Pursuant to Section 11-57-210 C.R.S., such recital conclusively imparts full compliance
with all provisions of said sections, and the bonds issued containing such recital shall be
incontestable for any cause whatsoever after their delivery for value.
(c) Except as expressly provided in this Agreement and in the documents authorizing
the Senior Lien Securities, the Pledged Tax Increment Revenues shall be and hereby are
irrevocably pledged and set aside to pay the principal of and interest on the Bond. The Bond
constitutes an irrevocable lien (but not a first lien nor an exclusive lien) upon the Pledged Tax
Increment Revenues. The creation, perfection, enforcement, and priority of the pledge of
revenues to secure or pay the Bond shall be governed by §11-57-208 of the Supplemental Act.
The Pledged Tax Increment Revenue shall immediately be subject to the lien of such pledge
without any physical delivery, filing, or further act. The lien of such pledge on the Pledged Tax
Increment Revenue shall be subordinate or junior to the Senior Lien Securities. The lien of such
pledge shall be valid, binding, and enforceable as against all persons having claims of any kind
in tort, contract, or otherwise against the City irrespective of whether such persons have notice of
such liens. The Bond shall recite in substance that the Bond is not a general obligation of the
City and that the full faith and credit of the City is not pledged to pay the debt service
requirements of such Bond.
(d) Interest shall begin to accrue on the Bond from the date of the first funding
advance made by the Company to fund an Improvement Project (the “Initial Funding Date”)
until the one year anniversary of the Initial Funding Date at a rate equal to 0.25% per annum.
Thereafter, the interest rate on the Bond shall be reset on each one year anniversary of the Initial
Funding Date (the “Reset Date”) at a rate equal to the difference between the interest rate on the
10 year U.S. Treasury Note on the Initial Funding Date (the “Initial Treasury Rate”) and the
average of the interest rate on the 10 year U.S. Treasury Note during the 30 day period up to and
including the Reset Date, provided that in no event shall the interest rate be less than 0.25% per
annum. The City shall calculate the applicable interest rate on each Reset Date and shall provide
written notice thereof to the Authority and the Company. Absent manifest error, the City’s
determination of the applicable interest rate on each Reset Date shall be conclusive. Unpaid
interest shall compound on each Reset Date.
(e) The unpaid principal balance of the Bond at any time shall be the total amount
paid by the Company to fund the Improvement Projects, plus any compound interest, less the
amount of payments of the principal made on the Bond. The Bond shall mature on
December 31, 2031.
(f) The Pledged Tax Increment Revenues shall be applied to the payment of the
principal of and interest on the Bond as follows:
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(i) Principal and interest on the Bond shall be payable solely from Pledged
Tax Increment Revenues during the Tax Increment Period to the extent available. By
December 31 in each year, available Pledged Tax Increment Revenues shall be applied
first to the payment of interest on the Bond and then to the payment of principal.
(ii) For so long as the Façade Easements have not been paid in full, the
Pledged Tax Increment Revenues shall be applied as follows:
(A) Upon Completion of Phase One, 20% of the Pledged Tax
Increment Revenues shall be applied to the payment of Façade Easements
in accordance with the Façade Easement Agreement and 80% of the
Pledged Tax Increment Revenues shall be applied to the payment of the
principal of and interest on the Bond;
(B) Upon Completion of Phase One and Phase Two, 27% of
the Pledged Tax Increment Revenues shall be applied to the payment of
Façade Easements in accordance with the Façade Easement Agreement
and 73% of the Pledged Tax Increment Revenues shall be applied to the
payment of the principal of and interest on the Bond;
(C) Upon Completion of Phase One, Phase Two and either
Phase Three or Phase Four (or both Phases Three and Four), 32% of the
Pledged Tax Increment Revenues shall be applied to the payment of
Façade Easements in accordance with the Façade Easement Agreement
and 68% of the Pledged Tax Increment Revenues shall be applied to the
payment of the principal of and interest on the Bond;
(D) After payment in full of the Façade Easement, 100% of the
Pledged Tax Increment Revenues shall be applied to the payment of the
principal of and interest on the Bond.
(E) After payment in full of the Bond, 100% of the Pledged
Tax Increment Revenues shall be applied to the payment of the Façade
Easement.
(iii) In the event that the available Pledged Tax Increment Revenues are not
sufficient to repay the principal of and interest on the Bond in full during the Tax
Increment Period, and amounts remain unpaid on the Bond at the expiration of the Tax
Increment Period, this shall not constitute an Event of Default hereunder or under the
Bond. In the event of any such insufficiency, then the City hereby declares its intent to
pay any such unpaid amounts of principal and interest on the Bond from legally available
funds of the City, subject to appropriation by the Council. The City agrees that the City
Manager shall, at such time, present to the City Council for its consideration a resolution
or ordinance authorizing the City to pay such unpaid amounts. Notwithstanding the
foregoing, however, any failure by the Council to appropriate any payments necessary to
pay any unpaid principal of or interest on the Bond on the expiration of the Tax
Increment Period shall not be deemed a Default or an Event of Default hereunder. The
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Council’s declaration of intent to make such payments shall not be binding upon the
Council or any future Council in any future fiscal year. Any such payments by the City
shall constitute currently appropriated expenditures of the City. Neither this Agreement
nor the issuance of the Bond shall obligate or compel the City to make payments on the
Bond from sources other than the Pledged Tax Increment Revenues beyond those
appropriated in the Council’s sole discretion.
(iv) In connection with the execution and delivery of this Agreement and the
issuance of the Bond, the City shall appropriate $2.2 million of available money of the
City (the “Reserve Amount”) to be applied to the payment of the Bond in the event that
only Phase One of the Project is Completed and there are insufficient Pledged Tax
Increment Revenues to repay the principal of and interest on the Bond in full during the
Tax Increment Period. Pursuant to the Charter, the Reserve Amount shall be subject to
appropriation in each subsequent year. In the event that the Company substantially
completes Phase One and has broken ground on Phase Two and Phase Four of the
Project, the City may, in its discretion, release the $2.2 million Reserve Amount and
apply such amount to any lawful purpose of the City, provided that at the time such
Reserve Amount is released by the City, the amount of Pledged Tax Increment Revenue
estimated to be available to repay the Bond during the Tax Increment Period is not less
than the outstanding principal amount of the Bond, plus the maximum estimated amount
of interest to be paid on the Bond.
(v) Notwithstanding the foregoing, or anything else to the contrary contained
in this Agreement, the Company acknowledges that the terms and provisions of the
Senior Lien Documents govern the application of the Pledged Tax Increment Revenues
and that the obligation of the City to apply the Pledged Tax Increment Revenues to the
repayment of the Bond shall be subordinate to the Senior Lien Securities.
(h) The principal of and interest on the Bond are payable in any coin or currency of
the United States of America which on the payment date is legal tender for the payment of
public and private debts. Payments made by the City on the Bond shall be applied first to any
interest payments owing thereunder which are due and unpaid, and shall be applied second to
any outstanding principal thereunder. The principal of and interest on the Bond shall be payable
by wire transfer or as otherwise directed in writing by the Company. The final principal
payment of and final installment of interest on the Bond shall be payable to the Company upon
presentation and surrender of the Bond to the City at maturity or upon prior prepayment in
whole.
(i) The City may prepay the Bond in whole or in part, at any time, without
prepayment premium, upon ten (10) days prior written notice to the Company. Any partial
prepayments received in accordance with this provision will not, unless agreed to by the
Company in writing, relieve the City of its obligation to continue to make payments as set forth
herein or in the Bond; rather, such prepayments will reduce the principal balance due on the
Bond.
(j) The Bond shall be executed by and on behalf of the City with the facsimile or
manual signature of the Mayor, shall bear a facsimile or manual impression of the seal of the
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City, shall be attested with the facsimile or manual signature of the City Clerk and shall be
countersigned with the manual signature of the Financial Officer of the City. Should any officer
whose facsimile or manual signature appears on the Bond cease to be such officer before
delivery of the Bond to the Company, such facsimile or manual signature shall nevertheless be
valid and sufficient for all purposes.
(k) When the principal of and interest on the Bond have been paid in full, the pledge
and lien of the Pledged Tax Increment Revenues and all obligations hereunder and under the
Bond shall thereby be discharged and the Bond shall no longer be deemed to be outstanding
within the meaning of this Agreement.
(l) The parties acknowledge that any express or implicit tax advice provided in this
Agreement cannot be used by any taxpayer to avoid penalties that may be imposed on any
taxpayer by the Internal Revenue Service.
5.2 Disposition of Pledged Tax Increment Revenues. For so long as the Bond shall be
outstanding, except as otherwise provided herein, the Tax Increment Revenues, upon their
receipt from time to time by the City, shall be set aside and credited immediately to the Tax
Increment Fund. For so long as the Bond shall be outstanding, the Pledged Tax Increment
Revenues on deposit in the Tax Increment Fund shall be accumulated and administered, and the
moneys on deposit therein shall be applied, in the following order of priority:
(a) First, to the extent that there are outstanding Senior Lien Securities, the Pledged
Tax Increment Revenues shall be applied to make all payments required by the Senior Lien
Documents, including, without limitation, the payment of the debt service requirements of the
Senior Lien Securities and the accumulation of any reserve funds required in connection with the
Senior Lien Securities, at the times and in the manner specified therein.
(b) Second, after all amounts required to be applied or accumulated in connection
with the Senior Lien Securities have been made or provided for in the current Bond Year, any
Pledged Tax Increment Revenues remaining in the Tax Increment Fund in any Bond Year shall
be used by the City for the payment of the principal of and interest on the Bond and the
reimbursement for the Façade Easements, as set forth in Section 5.1(f)(ii) hereof; but the lien of
the Bond on the Pledged Tax Increment Revenues and the pledge thereof for the payment of the
Bond shall be subordinate and junior to the lien and pledge for the payment of all outstanding
Senior Lien Securities as herein provided.
(c) Third, after all the amounts required to be applied or accumulated pursuant to
paragraphs 5.2(a) and (b) above have been made or provided for in the current Bond Year, any
Pledged Tax Increment Revenues remaining in the Tax Increment Fund in any Bond Year may
be used to pay the debt service requirements of any Subordinate Lien Bonds, and any required
reserve fund payments or accumulations required in connection therewith.
(d) After the payments required to be made by Sections 5.2(a), (b) and (c) have been
made or provided for in any Bond Year and provided the City shall has made or provided for all
payments required in connection with the Bond in such Bond Year, any remaining Pledged Tax
Increment Revenues may be used for any one or any combination of purposes allowed by State
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law, including the Downtown Development Authority Act, as the City may from time to time
determine.
(e) The sums required to make the payments specified in this Section 5.2 are hereby
appropriated for the purposes, and the amounts so required to make the payments specified in
this Section in each year shall be included in the budget and the appropriation ordinance or
measures to be adopted or passed by the Council while the Bond is outstanding and unpaid. No
provisions of any constitution, charter, statute, ordinance, resolution, or other order or measure
enacted after the issuance of the Bond shall in any manner be construed as limiting or impairing
the obligation of the City to keep and perform the covenants contained in this Agreement so long
as the Bond remains outstanding and unpaid.
5.3 Issuance of Additional Securities. So long as the Bond remains outstanding, the City may
issue additional securities payable in whole or in part from the Pledged Tax Increment Revenues
only in accordance with the following provisions:
(a) The City may issue additional Senior Lien Securities only to refund, in whole or
in part, outstanding Senior Lien Securities, provided that the debt service requirements payable
in any Bond Year on such Senior Lien Securities after such refunding is not increased above the
debt service requirements payable in such Bond Year on the Senior Lien Securities outstanding
prior to the refunding.
(b) The City may not issue additional securities payable from the Pledged Tax
Increment Revenues having a lien thereon that is on a parity with the lien thereon of the Bond.
(c) The City may issue additional Subordinate Securities for any lawful purpose
payable from the Pledged Tax Increment Revenues having a lien thereon subordinate or junior to
the lien thereon of the Bond.
(d) Notwithstanding the foregoing or any provisions to the contrary contained herein,
the Authority may continue to renew the Line of Credit without prior approval of the Company.
5.4 City Covenants. The City hereby particularly covenants and agrees with the Company,
as the owner of the Bond, and makes provisions that shall be a part of its contract with the
Company, which covenants and provisions shall be kept by the City continuously until the Bond
has been fully paid and discharged:
(a) Continuance and Collection of Pledged Tax Increment Revenues.
(i) The Plan of Development, as approved and amended as described
in this Agreement, is now in full force and effect. The City will not revoke
its approval or amend the Plan of Development in any manner that would
materially diminish the Pledged Tax Increment Revenues.
(ii) The City shall continue to collect the Tax Increment Revenues in
accordance with the Downtown Development Authority Act and all
applicable City ordinances related thereto.
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(iii) The City shall maintain the Tax Increment Fund as a fund of the
City separate and distinct from all other funds of the City and shall place
the Tax Increment Revenues therein. The Tax Increment Fund shall be
subject to appropriation only as authorized by the Downtown
Development Authority Act and all applicable City ordinances related
thereto.
(b) Defense of Legality of Pledged Revenues. There is not pending or
threatened in writing any suit, action or proceeding against or affecting the City
before or by any court, arbitrator, administrative agency or other governmental
authority that affects the validity or legality of this Agreement, any ordinance
affecting the Pledged Tax Increment Revenues or any of the City's obligations
under such ordinances. The City shall, to the extent permitted by law, defend the
validity and legality of all ordinances affecting the Pledged Tax Increment
Revenues and all amendments thereto against all claims, suits and proceedings
that would materially diminish or impair the Pledged Tax Increment Revenues.
(c) Further Assurances. At any and all times the City shall, so far as it may be
authorized by law, pass, make, do, execute, acknowledge, deliver, and file or
record all and every such further instruments, acts, deeds, conveyances,
assignments, transfers, other documents, and assurances as may be necessary or
desirable for the better assuring, conveying, granting, assigning and confirming
all and singular the rights, the Pledged Tax Increment Revenues and other funds
and accounts hereby pledged, or intended so to be, or that the City may hereafter
become bound to pledge, or as may be reasonable and required to carry out the
purposes of this Agreement. The City, acting by and through its officers, or
otherwise, shall at all times, to the extent permitted by law, defend, preserve and
protect the pledge of the Pledged Tax Increment Revenues and other funds and
accounts pledged hereunder and all the rights of the owner of the Bond against all
claims and demands of all persons whomsoever.
SECTION 6. PAYMENT AND REBATE OF USE TAXES, DEVELOPMENT FEES
AND CAPITAL IMPROVEMENT FEES
6.1 Woodward shall pay to the City all Use Taxes, Development Fees and Capital
Improvement Fees due from Woodward in connection with the Project.
6.2 To the extent permitted by the constitution and laws of the State of Colorado and the
Charter, including but not limited to, applicable prohibitions on multiple fiscal year obligations
and the condition all obligations be contingent upon the appropriation of funds sufficient and
intended therefore by the City Council of the City, in its sole discretion, the City agrees to rebate
the following amounts to Woodward:
(a) 80% of the Use Taxes paid by Woodward for Eligible Equipment and
Construction Materials for the Project under the terms and conditions set forth in this Section 6
(the “Use Tax Rebate”), subject to the contingencies and requirements described in this
Agreement. Woodward shall not be eligible for a Use Tax Rebate for any Use Tax paid on any
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Eligible Equipment or Construction Material for the Project unless it has accurately designated
and identified the Eligible Equipment or such Construction Materials on a separate schedule as
part of the Use Tax submission for such Eligible Equipment or Construction Materials.
(b) 100% of the Development Fees received by the City under the terms and
conditions set forth in this Section 6 (the “Development Fee Rebate”), subject to the
contingencies and requirements described in this Agreement.
(c) 50% of the Capital Improvement Fees received by the City under the terms and
conditions set forth in this Section 6 (the “Capital Improvement Fee Rebate”), subject to the
contingencies and requirements described in this Agreement.
6.3 The Use Tax Rebates, Development Fee Rebates and Capital Improvement Fee Rebates
(collectively, the “Rebates”) shall be conditioned upon the full payment by Woodward to the
City of all Use Taxes, Development Fee Rebates and Capital Improvement Fee Rebates, as the
case may be, due and owing from Woodward, subject to the following provisions:
(a) If Woodward has not paid any Use Taxes owed to the City due to a good faith
dispute as to whether such Use Tax is due, and such dispute has not been resolved by the time
the Company requests a Use Tax Rebate hereunder, or if Woodward otherwise fails to pay any
Use Taxes owed to the City when due and such Use Taxes remain unpaid at the time the
Company requests a Use Tax Rebate hereunder, then the City may reduce the requested Use Tax
Rebate by the amount in dispute until resolution of the dispute, payment of the Use Tax or
payment under protest of the Use Tax, as the case may be.
(b) If Woodward has not paid any Development Fees owed to the City due to a good
faith dispute as to whether such Development Fee is due, and such dispute has not been resolved
by the time the Company requests a Development Fee Rebate hereunder, or if Woodward
otherwise fails to pay any Development Fee owed to the City when due and such Development
Fees remain unpaid at the time the Company requests a Development Fee Rebate hereunder, then
the City may reduce the requested Development Fee Rebate by the amount in dispute until
resolution of the dispute or payment of the Development Fee, as the case may be.
(c) If Woodward has not paid any Capital Improvement Fees owed to the City due to
a good faith dispute as to whether such Capital Improvement Fee is due, and such dispute has not
been resolved by the time the Company requests a Capital Improvement Fee Rebate hereunder,
or if Woodward otherwise fails to pay any Capital Improvement Fee owed to the City when due
and such Capital Improvement Fees remain unpaid at the time the Company requests a Capital
Improvement Fee Rebate hereunder, then the City may reduce the requested Capital
Improvement Fee Rebate by the amount in dispute until resolution of the dispute or payment of
the Capital Improvement Fee, as the case may be.
6.4 The Company shall apply for the Rebates in accordance with the provisions hereinafter
set forth. The amount of Rebates payable by the City and the time when such Rebates shall be
paid are hereinafter set forth:
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(a) In order to be eligible for any Use Tax Rebate hereunder,
Woodward shall submit an Application for Use Tax Rebate. Any such
Application (and each such Application for Use Tax Rebate submitted pursuant to
this Section 6.4) must identify each item of Eligible Equipment or Construction
Materials used on the Project in a manner consistent with, and corresponding to,
the manner in which such item of Eligible Equipment or Construction Materials
were designated and identified in connection with the payment of Use Taxes for
said item. Woodward shall be eligible to submit an Application for Use Tax
Rebate to the City in the first quarter of each year for any Use Taxes paid in the
prior year. The Use Tax Rebate to Woodward shall be made by the City within
ninety (90) days of receipt of such request by Woodward, subject to annual
appropriation by the City Council of funds sufficient and intended for such
purpose.
(b) In order to be eligible for any Development Fee Rebate or Capital
Improvement Fee Rebate hereunder, Woodward shall submit a request for
Development Fee Rebate or Capital Improvement Fee Rebate, as the case may be,
in a form or manner reasonably satisfactory to the City. Any such request shall
identify all applicable Development Fees or Capital Improvement Fees, as the
case may be, that have been paid by Woodward in connection with the Project.
Woodward shall be eligible to submit such a request to the City at any time for
any Development Fees or Capital Improvement Fees that have been paid at the
time of such request. The Development Fee Rebate or Capital Improvement Fee
Rebate to Woodward shall be made by the City within one hundred twenty (120)
days of receipt of such request by Woodward, subject to annual appropriation by
the City Council of funds sufficient and intended for such purpose.
(c) Woodward acknowledges that the Rebates are being offered by the
City in part based on certain employment levels being increased and maintained
by Woodward. Specifically, the City and Woodward have agreed that the
minimum target for employment within the City shall be 1400 employees by
December 31, 2018. If the Company applies for a Use Tax Rebate, Development
Fee Rebate or Capital Improvement Fee Rebate prior to December 31, 2018, then
the City may withhold 40% of the requested Rebate until it has verified that
Woodward has achieved this level of employment on or prior to December 31,
2018. If the Company’s employment level reaches or exceeds 1400 employees
within the City on or prior to December 31, 2018, any Use Tax Rebates,
Development Fee Rebates and Capital Improvement Fee Rebates held back by the
City shall be remitted to the Company. If the Company’s employment level has
not reached 1400 employees within the City by December 31, 2018, but has
reached 1400 employees within the City on or prior to December 31, 2020, then
upon reaching such level, the City shall retain $500,000 of the amount held back
for all Rebates and shall remit the remaining amount held back from all Rebates
to the Company. If the Company’s employment level has not reached 1400
employees within the City by December 31, 2020, the City shall be entitled to
thereafter retain all amounts held back by the City on the Rebates. In no event
shall Woodward be required to repay to the City all or any portion of the initial
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60% of the Rebates paid by the City to Woodward. For purposes of this
provision, an “employee” shall mean a Full-Time Equivalent Employee.
6.5 The City, in its sole discretion, may pre-pay all or any portion of the Rebates, without
penalty.
6.6 It is not the parties’ intent that Woodward be paid or entitled to any interest or penalty on
Use Taxes, Development Fees or Capital Improvement Fees paid by Woodward, or any penalty
or interest on Rebate payments delayed or withheld by the City.
6.7 The parties further acknowledge and agree that the Use Tax Rebate for any Eligible
Equipment or Construction Materials for the Project shall not at any time be allowed to exceed
the amount of City Use Tax actually paid to the City on such Eligible Equipment or such
Construction Materials. Woodward further acknowledges and agrees that the City is in no way
responsible for the amount of City Use Tax actually paid or collected for the Eligible Equipment
or Construction Materials for the Project or any other equipment or corporeal property of
Woodward. The Use Tax Rebate as described herein is intended to be in lieu of, and not a
duplication of, the Manufacturing Equipment Use Tax Rebate Program. On an annual basis, the
Company may elect to either apply for Use Tax Rebates in accordance with the provisions
hereof, or participate in the Manufacturing Equipment Use Tax Rebate Program.
6.8 The parties agree that the provisions of this Agreement do not constitute an indebtedness
of the City within the meaning of any constitutional or statutory limitation or Charter provision.
The commitment of the City to pay the Use Tax Rebate, the Development Fee Rebate and the
Capital Improvement Fee Rebate under this Agreement is from year to year only and does not
constitute a mandatory payment obligation of the City in any fiscal year. This Agreement does
not directly or indirectly obligate the City to make any payment of a Rebate beyond those for
which funds have been appropriated as of the date of this Agreement. The City Manager (or any
other officer or employee at the time charged with the responsibility of formulating budget
proposals) shall make a good faith effort to include in the budget proposals and appropriation
ordinances proposed to the City Council, in each year prior to expiration of this Agreement,
amounts sufficient to meet the City’s commitments hereunder, subject to the conditions and
contingencies set forth herein. Notwithstanding the foregoing, the parties expressly
acknowledge that the decision as to whether to appropriate such amounts is in the discretion of
the City Council.
SECTION 7. RECORDS AND AUDITS
7.1 Woodward shall keep true, accurate and complete records of the acquisition and
installation of the Eligible Equipment, which records shall be available for inspection by the City
without unreasonable delay and without City expense. Woodward agrees that the City has the
right, through its duly authorized agents or representatives, to examine all such records upon ten
(10) days notice at all reasonable times, as well as the right to inspect and inventory the Eligible
Equipment in order to confirm that the same is in place and in use as required in connection with
any Use Tax Rebate hereunder. This right of review and inspection terminates upon termination
of the City’s payments of Use Tax Rebates. In the event that the City becomes the custodian of
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any such records which may contain trade secrets or confidential or proprietary information, and
are so marked, the City shall, to the extent permitted by law, protect the confidentiality of such
information and deny any request for inspection of such records.
7.2 The City shall keep, or cause to be kept, true, accurate and complete records of: (a) all
expenditures related to all costs incurred by the City in connection with the Improvement
Projects and the use of all funding provided by the Company to the City hereunder; (b) all
Pledged Tax Increment Revenues received by the City; and (c) all calculations relating to the
Use Tax Rebates, Development Fee Rebates and Capital Improvement Fee Rebates and such
other calculations, allocations and payments required by this Agreement. The City’s obligation
to keep records in accordance with (a) and (b) shall terminate two years after the Bond is paid in
full and the City’s obligation to keep records in accordance with (c) shall terminate one year after
all rebates have been paid or such obligation to pay rebates has terminated. The City shall make
such records available for inspection by Woodward upon ten (10) days notice at all reasonable
times, to the extent permitted by law.
SECTION 8. RESTRICTIONS ON ASSIGNMENT
8.1 The qualifications of Woodward to accomplish the objectives of the City hereunder are of
particular concern to the City and the Authority. Therefore, no voluntary or involuntary
successor in interest of Woodward shall acquire any rights or powers under this Agreement
except as expressly set forth herein and Woodward shall not assign all or any part of this
Agreement, except either:
(a) with the prior written approval of the City Council and the Board, in their sole
discretion; or
(b) as collateral to a lender in connection with the financing of the Project; or
(c) to a successor by merger, consolidation or by acquisition of all or a substantial
portion of the shares or assets of Woodward.
8.2 Woodward shall notify the City and the Authority within fifteen (15) days of any and all
changes whatsoever in the identity of the parties in control of Woodward, or the degree thereof,
of which it or any of its officers have been notified or otherwise have knowledge or information.
SECTION 9. EVENTS OF DEFAULT; REMEDIES
9.1 Default or an event of default by Woodward shall mean one or more of the following
events:
(a) Determination that any representation or warranty made in this
Agreement by Woodward was materially inaccurate when made or shall prove to be
materially inaccurate;
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(b) The assignment of, or an attempt to assign, this Agreement by Woodward
in violation of Section 8 of this Agreement; or
(c) The failure by Woodward to substantially observe or perform any other
material covenant, obligation or agreement required under this Agreement.
9.2 In order to exercise any remedy for default hereunder, upon the occurrence of any event
of default, the City or the Authority shall provide written notice to Woodward. Woodward must
immediately proceed to cure or remedy such default, and in any event, such default shall be
cured within thirty (30) days after receipt of the notice, or such longer time as the City, the
Authority and Woodward agree in writing. Upon the failure of Woodward to so cure any such
default, the City and the Authority shall have all remedies available to it, in law or in equity,
excluding specific performance.
9.3 Default or an event of default by the City shall mean one or more of the following events:
(a) A determination that any representation or warranty made in this
Agreement by the City was materially inaccurate when made or shall prove to be
materially inaccurate; or
(b) The failure by the City to perform any nonmonetary, material covenant,
obligation or agreement required of it under this Agreement.
9.4 In order to exercise any remedy for default hereunder, upon the occurrence of any event
of default, Woodward shall provide written notice to the City. The City must immediately
proceed to cure or remedy such default, and in any event, such default shall be cured within
thirty (30) days after receipt of the notice, or such longer time as the City and Woodward agree
in writing. Upon the failure of the City to so cure any such default, Woodward shall have all
remedies available to it, in law or in equity excluding specific performance.
9.5 Default or an event of default by the Authority shall mean one or more of the following
events:
(a) A determination that any representation or warranty made in this
Agreement by the Authority was materially inaccurate when made or shall prove to be
materially inaccurate; or
(b) The failure by the Authority to perform any nonmonetary, material
covenant, obligation or agreement required of it under this Agreement.
9.6 In order to exercise any remedy for default hereunder, upon the occurrence of any event
of default, Woodward shall provide written notice to the Authority. The Authority must
immediately proceed to cure or remedy such default, and in any event, such default shall be
cured within thirty (30) days after receipt of the notice, or such longer time as the Authority and
Woodward agree in writing. Upon the failure of the Authority to so cure any such default,
25
Woodward shall have all remedies available to it, in law or in equity excluding specific
performance.
9.7 Notwithstanding the foregoing or any provision to the contrary contained herein, any
delays in or failure of performance by any party of its obligations under this Agreement shall be
excused if such delays or failure are a result of acts of God; fires; floods; earthquake; strikes;
labor disputes; regulation or order of civil or military authorities; or other causes, similar or
dissimilar, which are beyond the control of such party.
SECTION 10. NOTICES
10.1 All notices required or permitted hereunder shall be in writing and shall be effective upon
mailing, deposited in the United States Mail, postage prepaid, and addressed to the intended
recipient as follows. Any party can change its address by written notice to the other given in
accordance with this Section. Any party can change the method by which it can receive notice
hereunder by written notice to the other parties hereunder.
City of Fort Collins: City of Fort Collins
Attention: City Manager
300 LaPorte Avenue, PO Box 580
Fort Collins, CO 80522-0580
With a copy to: City of Fort Collins
Attention: City Attorney
300 LaPorte Avenue, PO Box 580
Fort Collins, CO 80522-0580
Authority: The City of Fort Collins,
Downtown Development Authority
Attention: Executive Director
19 Old Town Square, STE 230
Fort Collins, CO 80524
With a copy to: Liley, Rogers & Martell, LLC
Attention: Lucia A. Liley
300 S. Howes Street
Fort Collins, CO 80521
Woodward: Woodward, Inc.
Attention: Robert K. Scott
1000 East Drake Road
Fort Collins, CO 80525
1-970-498-3033
rocky.scott@woodward.com
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With a copy to: Woodward, Inc.
Attention: Steve Roberti
1000 East Drake Road
Fort Collins, CO 80525
Steve.Roberti@woodward.com
With a copy to: Brownstein Hyatt Farber Schreck LLP
Attn: Carolynne C. White
410 17th St., Suite 2200
Denver, CO 80202
303-223-1197
email: cwhite@bhfs.com
SECTION 11. MISCELLANEOUS
11.1 Future Commercial Project. The Project Development Plan includes an approximately
7.66 acre tract which has, pursuant to such plan, been approved for commercial development
which is more particularly depicted on Exhibit C attached hereto and incorporated herein by
reference. The Authority and the City agree to consider, in good faith, any future proposal for
business assistance/façade easement agreements with the Authority and/or the City in connection
with development of such tract, in accordance with the then existing regulations and policies of
the City and the Authority for such agreements, such consideration may include, but is not
necessarily limited to, purchase of façade easements, rebates of Use Tax, Capital Improvement
Fees and Development Fees, tax increment financing and the other City programs identified in
Section 11.3.
11.2 Future Expansion on Property. In connection with any future expansion by Woodward
on the Property beyond Phases One, Two, Three and Four, as set forth on the Phasing Schedule,
and which is not related to the Future Commercial Project, the Company reserves the right to
request, and the City agrees to consider in good faith, additional rebates of Use Tax, Capital
Improvement Fees and Development Fees, tax increment financing and the other City programs
identified in Section 11.3.
11.3 Participation in Utility Programs. The parties acknowledge and agree that it is their
intent and desire that Woodward partner with the City and participate in the City’s Fort Collins
Solar Program, and the City’s Integrated Design Assistance Program (with a maximum amount
up to $75,000), both offered through the City’s electric utility, as well as the City’s ClimateWise
Program. In addition, the City has agreed to share the costs of construction of power substation
facilities through the rebate of Electric Development Fees, which are included among the Capital
Improvement Fees to be rebated by the City pursuant to Section 6.
11.4 Drake Road Property. The Company's plans for expansion of its employment and
facilities within the City include possible renovation and expansion of the Company's existing
campus at 1000 Drake Road. The City agrees to consider, in good faith, any future proposal for
business assistance in connection with redevelopment or expansion of all or part of the Drake
Road property, in accordance with the then existing regulations and policies of the City for such
27
agreements, such consideration may include, but is not necessarily limited to, rebates of Use Tax,
Capital Improvement Fees and Development fees and other City programs being made available
for the Project pursuant to this Agreement.
11.5 Appropriation of Funds. Pursuant to the Charter, obligations of the City arising under
this Agreement are contingent upon the appropriation of funds sufficient and intended for the
same by the City Council.
11.6 Binding Effect. This Agreement inures to the benefit of and is binding upon the City, the
Authority and Woodward and Woodward’s assignees which are permitted pursuant to Section 8
of this Agreement.
11.7 No Third Party Beneficiaries. The City and the Authority are not obligated or liable under
the terms of this Agreement to any person or entity not a party hereto except any assignee
permitted pursuant to Section 8 of this Agreement. Further, the City and the Authority are not
bound by any contracts or conditions that Woodward may negotiate with third parties related to
the Project.
11.8 Interpretation, Jurisdiction and Venue. This Agreement is being executed and delivered
and is intended to be performed in the State of Colorado, and the laws of Colorado govern the
validity, construction, enforcement and interpretation of this Agreement. Exclusive jurisdiction
and venue for resolution of any dispute arising hereunder shall be in the Larimer County,
Colorado District Court.
11.9 Amendment. This Agreement may be amended only by a written instrument signed by
the parties to this Agreement.
11.10 Additional Documents or Action. The parties to this Agreement agree to execute any
additional documents or take any additional action that is necessary to carry out this Agreement
or is reasonably requested by another party to confirm or clarify the intent of the provisions
hereof and to effectuate the agreements herein contained and the intent hereof. If all or any
portion of this Agreement are asserted or determined to be invalid, illegal or are otherwise
precluded, the parties to this Agreement, within the scope of their powers and duties, shall
cooperate in the joint defense of such documents and, if such defense is unsuccessful, such
parties will use reasonable, diligent good faith efforts to amend, reform or replace such precluded
items to assure, to the extent legally permissible, that each party substantially receives the
benefits that it would have received under this Agreement.
11.11 Good Faith of Parties. In the performance of this Agreement or in considering any
requested approval, consent, acceptance, or extension of time, the parties agree that each will act
in good faith and will not act unreasonably, arbitrarily, capriciously, or unreasonably withhold,
condition, or delay any approval, acceptance, or extension of time required or requested pursuant
to this Agreement.
11.12 Waiver of Breach. Any waiver of any requirement or obligation hereunder must be in
writing to be effective. Any waiver by any party to this Agreement of any term or provision of
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this Agreement shall be narrowly construed, and shall not operate or be construed as a
subsequent or continuing waiver of said term or provision.
11.13 Article and Section Captions. The captions of the articles and sections of this Agreement
are set forth only for the convenience and reference of the parties and are not intended in any
way to define, limit, or describe the scope or intent of this Agreement.
11.14 City, Authority and Woodward Not Partners. Notwithstanding any language in this
Agreement, neither the City nor the Authority is a member, partner, or joint venturer of
Woodward, and neither the City nor the Authority shall be responsible for any debt or liability of
Woodward or its contractors or agents. Woodward is not responsible for any debt or liability of
the City, the Authority, or their respective contractors or agents.
11.15 Severability. If any portion or portions of this Agreement are determined to be illegal or
unenforceable, the remainder of this Agreement shall not be affected thereby and shall remain in
full force and effect as if such illegal or unenforceable portion or portions did not exist. If all or
any portion of the payments required by the terms of this Agreement are determined, by a court
of competent jurisdiction in a final non-appealable judgment, to be contrary to public policy or
otherwise precluded, and if the decision of such court clearly indicates how the payments may be
made differently and in a manner that is legal, valid and enforceable, then the Parties shall utilize
their reasonable, best, good faith efforts to promptly restructure and/or amend this Agreement in
accordance with such court decision, or to enter into a new agreement, to assure, to the extent
legally permissible, that all payments are made to Woodward as contemplated by this
Agreement.
11.16 Originals. This Agreement may be simultaneously executed in any number of
counterparts, each of which shall be deemed original but all of which constitute one and the same
Agreement.
11.17 Joint Draft. The parties agree they drafted this Agreement jointly with each having the
advice of legal counsel and an equal opportunity to contribute to its content.
[SIGNATURES APPEAR ON FOLLOWING PAGE]
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IN WITNESS WHEREOF, the City, the Authority and Woodward have executed this
Agreement as of the date first above written.
CITY OF FORT COLLINS, COLORADO
a municipal corporation
By:
Karen Weitkunat, Mayor
By:
Darin Atteberry, City Manager
Attest:
Wanda Nelson, City Clerk
Approved as to form:
Stephen J. Roy, City Attorney
THE FORT COLLINS, COLORADO,
DOWNTOWN DEVELOPMENT AUTHORITY
_______________________________________
Wynne Odell, Chairperson
(SEAL)
Attest:
____________________________________
Janet Bramhall, Secretary
WOODWARD, INC., a Delaware corporation
By:
Title:
30
STATE OF COLORADO )
) ss.
COUNTY OF LARIMER )
The foregoing Agreement with Woodward, Inc. was executed before me this ______ day of
___________________, 2013, by Karen Weitkunat, as Mayor, by Wanda Nelson, as City Clerk,
and by Darin Atteberry, City Manager, of the CITY OF FORT COLLINS, COLORADO, a
municipal corporation.
WITNESS my hand and official seal.
My commission expires
Notary Public
31
STATE OF COLORADO )
) ss.
COUNTY OF LARIMER )
The foregoing Agreement with Woodward, Inc. was executed before me this ______ day of
___________________, 2013, by Wynne Odell, as Chairperson, and by Janet Bramhall, as
Secretary, of THE FORT COLLINS, COLORADO, DOWNTOWN DEVELOPMENT
AUTHORITY.
WITNESS my hand and official seal.
My commission expires
Notary Public
32
STATE OF COLORADO )
) ss.
COUNTY OF LARIMER )
The foregoing Agreement with Woodward, Inc. was executed before me this _____ day of
_____________, 2013, by _______________ as __________________, of WOODWARD,
INC., a Delaware corporation.
WITNESS my hand and official seal.
My commission expires
Notary Public
33
List of Exhibits
Exhibit A Legal Description of Property
Exhibit B Description of Open Space Property
Exhibit C Description of the Project
Exhibit D Phasing Schedule for Project
Exhibit E Estimate of Value, including Exhibit E-1, illustration of Pledged Tax Increment
Revenues
Exhibit F Right of Way Improvements
Exhibit G Open Space Improvements
Exhibit H Transmission Line IGA
Exhibit I Façade Easement Agreement
Exhibit J Form of Bond
Exhibit K Application for Use Tax Rebate
LEGAL DESCRIPTION OF THE PROPERTY
A tract of land located in the Southeast Quarter of Section 12, Township 7 North, Range 69 West
and the Southwest Quarter of Section 7, Township 7 North, Range 68 West of the 6th Principal
Meridian, City of Fort Collins, County of Larimer, State of Colorado being more particularly
described as follows:
Considering the North line of the Southeast Quarter of said Section 12 as bearing North
89°29'04" West and with all bearings contained herein relative thereto:
Commencing at the East Quarter corner of said Section 12; thence along the North line of
said Southeast Quarter, North 89°29'04” West, 81.40 feet to the POINT OF
BEGINNING; thence, South 10°44'56” West, 40.66 feet to the northwest corner of that
tract of land described at Reception No. 94091198, recorded with the Larimer County
Clerk and Recorder; thence, along the west and southerly lines of said Reception No.
94091198 the following 3 courses and distances, South 10° 44' 56" West, 314.08 feet;
thence, South 71° 25' 09" East, 198.03 feet; thence, North 87° 59' 46" East, 138.53 feet to
the westerly right-of-way line of North Lemay Avenue; thence along said westerly right-
of-way line the following 6 courses and distances beginning with a curve concave to the
West having a central angle of 25° 27' 37", a radius of 930.93 feet, an arc length of
413.68 feet, and the chord of which bears South 10° 56' 48" East, 410.28 feet; thence,
South 01° 47' 03" West, 1519.07 feet to a point on the west line of that tract of land
described at Reception No. 20050097395, recorded with the Larimer County Clerk and
Recorder; thence, along said west line the following 4 courses and distances, South 05°
25' 37" West, 59.94 feet; thence, South 02° 03' 31" West, 64.95 feet; thence along a curve
concave to the West having a central angle of 17° 18' 36", a radius of 299.50 feet, an arc
length of 90.48 feet, and the chord of which bears South 10° 42' 48" West, 90.14 feet;
thence, South 19° 22' 04" West, 13.69 feet to the north line of East Mulberry Street;
thence, along said north line the following 2 courses and distances, North 89° 47' 09"
West, 205.09 feet; thence, North 89° 38' 44" West, 127.10 feet to the southeast corner of
Lot 2, Springer Third Subdivision, a plat of record with the Larimer County Clerk and
Recorder; thence along the easterly line of said Lot 2 the following 4 courses and
distances beginning with a curve concave to the West having a central angle of 30° 50'
23", a radius of 1013.60 feet, an arc length of 545.58 feet, and the chord of which bears
North 19° 18' 37" West, 539.01 feet; thence along a curve concave to the northeast
having a central angle of 04° 42' 22", a radius of 487.50 feet, an arc length of 40.04 feet,
and the chord of which bears North 32° 23' 02" West, 40.03 feet; thence along a curve
concave to the Southwest having a central angle of 13° 56' 38", a radius of 512.50 feet, an
arc length of 124.73 feet, and the chord of which bears North 36° 59' 47" West, 124.42
feet; thence along a curve concave to the Southwest having a central angle of 00° 36' 28",
a radius of 1023.60 feet, an arc length of 10.86 feet, and the chord of which bears North
44° 16' 20" West, 10.86 feet to the north corner of said Lot 2; thence along the
northwesterly line of said Lot 2, South 22° 29' 42" West, 24.98 feet to a point on the
northeasterly line of that tract of land described in Book 883, Page 318, recorded with the
EXHIBIT A
Page 1 of 2
Larimer County Clerk and Recorder; thence along said northeasterly line the following 2
courses and distances beginning with a curve concave to the Southwest having a central
angle of 14° 52' 11", a radius of 998.60 feet, an arc length of 259.16 feet, and the chord of
which bears North 51° 43' 42" West, 258.43 feet; thence, North 59° 09' 48" West, 276.50
feet to the northwest corner of said tract of land described in Book 883, Page 318; thence
along the west line of said tract of land, South 00° 20' 12" West, 239.20 feet to a point on
the north line of the Wastewater Treatment Plant No.1, a plat of record with the Larimer
County Clerk and Recorder; thence along said north line the following 4 courses and
distances, North 53° 16' 04" West, 5.70 feet; thence, North 79° 09' 04" West, 251.50 feet;
thence, North 88° 17' 04" West, 452.30 feet; thence, South 41° 12' 56" West, 89.29 feet;
thence, North 79° 27' 04" West, 590.41 feet; thence, North 09° 34' 10" East, 985.84 feet
to the southeast corner of Baldwin Minor Subdivision; thence along the east line of said
Baldwin Minor Subdivision, North 09° 34' 10" East, 813.89 feet to a point on the north
line of the Southeast Quarter of said Section 12; thence along said north line, South 89°
29' 04" East, 1848.09 feet to the Point of Beginning.
The above described area contains 4,427,328 square feet or 101.637 acres more or less
and is subject to all easements and rights-of-way (including E. Lincoln Avenue) now
on record or existing.
Also described as follows in the records of the Larimer County Assessor:
Parcel No. 97124-00-062;
Parcel No. 97124-00-071;
Parcel No. 97124-00-006;
Parcel No. 87073-00-096;
Parcel No. 97124-00-005;
Parcel No. 97124-00-017; and
Parcel No. 87073-00-099.
EXHIBIT A
Page 2 of 2
EXHIBIT B
Description of Open Space Property
(shown as Lot 4)
EXHIBIT C
EXHIBIT D
EXHIBIT E
Page 1 of 9
EXHIBIT E
Page 2 of 9
EXHIBIT E
Page 3 of 9
EXHIBIT E
Page 4 of 9
EXHIBIT E
Page 5 of 9
EXHIBIT E
Page 6 of 9
EXHIBIT E
Page 7 of 9
EXHIBIT E
Page 8 of 9
EXHIBIT E
Page 9 of 9
53
Public Improvement Areas
EXHIBIT F
Page 1 of 5
56
Utilities – Lemay Ave ROW
EXHIBIT F
Page 2 of 5
57
Landscape Improvements – Lemay Ave ROW
EXHIBIT F
Page 3 of 5
58
Utilities – Lincoln Ave ROW
EXHIBIT F
Page 4 of 5
59
Landscape Improvements – Lincoln Ave ROW
EXHIBIT F
Page 5 of 5
Intergovernmental Agreement for the Design and Relocation of Platte River Power Authority Transmission Facilities
Page 1 of 3
INTERGOVERNMENTAL AGREEMENT FOR THE DESIGN AND RELOCATION OF
PLATTE RIVER POWER AUTHORITY TRANSMISSION FACILITIES
This Intergovernmental Agreement for the Design and Relocation of Platte River Power
Authority Transmission Facilities is entered on this __ day of ____________, 2013, between
Platte River Power Authority, a political subdivision of the State of Colorado (Platte River), and
the City of Fort Collins, a Colorado home rule municipality (Fort Collins).
RECITALS
WHEREAS, Platte River owns and operates a 230kV/115kV double circuit overhead
transmission line that crosses the Link-N-Greens Golf Course in Fort Collins; and
WHEREAS, Woodward, Inc. (Woodward) is considering moving its corporate
headquarters facilities to the property currently occupied by Link-N-Greens Golf Course; and
WHEREAS, in order to make the Link-N-Greens Golf Course property useable as a
Woodward headquarters complex, approximately 3600 linear feet of the overhead transmission
line crossing the Link-N-Green property, specifically the line segment between structures TP-28
on the north and TP-19 on the south (Transmission Facility) will need to be removed and new
transmission facilities of a like configuration relocated to a route that runs parallel to Lemay
Street (Relocated Transmission Facility); and
WHEREAS, construction schedules for Woodward facilities may necessitate the
construction and removal of a Temporary Transmission Facility; and
WHEREAS, Platte River is willing to remove the Transmission Facility, to construct and
remove the Temporary Transmission Facility, and design and construct the Relocated
Transmission Facility to accommodate the requirements of Woodward, provided it is
reimbursed for the costs associated with this effort; and
WHEREAS, Fort Collins is negotiating with Woodward and the Fort Collins Downtown
Development Authority to develop a plan for funding of public improvements and related
financial incentives and financing arrangements in light of the expected benefits to the Fort
Collins community in the event that Woodward constructs its new headquarters facility as
described herein; and
WHEREAS, subject to the specific terms of this Agreement, Fort Collins is willing to
reimburse Platte River the reasonable costs of removal of the Transmission Facility, the
EXHIBIT H
Page 1 of 6
Intergovernmental Agreement for the Design and Relocation of Platte River Power Authority Transmission Facilities
Page 2 of 3
reasonable costs of construction and removal of the Temporary Transmission Facility, if
necessary, and the reasonable costs of design and construction of the Relocated Transmission
Facility; and
WHEREAS, the parties have the authority under C.R.S. § 29-1-203 to enter into
intergovernmental agreements provided such agreements are approved by the legislative body
of each party.
AGREEMENT
1) Platte River agrees to undertake the removal of the Transmission Facility, the
construction and removal of the Temporary Transmission Facility, if necessary,
and the design and construction of the Relocated Transmission Facility on the
Link-N-Green Golf Course, in accordance with plans and specifications mutually
approved and consistent with the reasonable expectations of the parties (the
“Work”). The routes of the Temporary Transmission Facility and the Relocated
Transmission Facility are displayed on Exhibit A. The Temporary Transmission
Facility and the Relocated Transmission Facility will be constructed overhead.
2) Fort Collins agrees to reimburse Platte River for all reasonable costs incurred in
the performance of the Work; provided however that Fort Collins will have no
reimbursement obligation unless and until: 1) Fort Collins provides written
notice to Platte River that Fort Collins has completed the arrangements necessary
for Fort Collins to move forward with the financing or funding of the Work; and
2) Woodward purchases the Link-N-Green property. If the obligation to
reimburse Platte River accrues, Fort Collins acknowledges that some of the
reimbursable costs were incurred by Platte River prior to the date of this
Agreement, but such costs, if reasonable and necessary for the completion of the
Work, will be treated as part of the Work and reimbursable hereunder.
3) Platte River will invoice Fort Collins for the costs of the relocation project on a
quarterly basis, invoices payable within thirty (30) days of receipt. Invoices will
itemize all costs for which reimbursement is sought.
4) Exhibit B contains an estimate of the costs for the removal of the Transmission
Facilities, the construction and removal of the Temporary Transmission Facility,
and costs for the design and construction of the Relocated Transmission Facility.
Fort Collins acknowledges that Exhibit B is an estimate of anticipated costs, and
EXHIBIT H
Page 2 of 6
Intergovernmental Agreement for the Design and Relocation of Platte River Power Authority Transmission Facilities
Page 3 of 3
that actual costs may vary. Subject to the limitations set forth herein, Fort Collins
is responsible for the reimbursement of all reasonable costs incurred by Platte
River to carry out the Work. In the event that Platte River discovers conditions
or circumstances that are expected to lead to costs in excess of the estimates
contained in Exhibit B, Platte River will promptly notify Fort Collins in writing of
such conditions or circumstances and will discuss with Fort Collins such cost
impacts and possible mitigation. If the reimbursable costs of the Work exceed
$2,000,000.00, Platte River will credit Fort Collins all “PRPA Project
Management” expenses, presently estimated to amount to $168,000.00.
5) Financial obligations of Fort Collins payable in future fiscal years shall be subject
to the annual appropriation of funds sufficient and intended for the same. Fort
Collins will notify Platte River in writing as soon as practicable concerning the
appropriation of funds during future fiscal years. Platte River will have no
obligation to perform any activity associated with the Work beyond December
31, 2013, unless and until receipt of notice that funds have been appropriated.
6) This is the entire agreement of the parties on this issue. This Agreement may
only be modified by a writing executed by both parties.
7) Fort Collins agrees to be the lead agency and take responsibility for all public
processes and for obtaining all necessary permits for the work.
IN WITNESS WHEREOF, the Parties have caused this Agreement, to be executed the
day and year first above written.
PLATTE RIVER POWER AUTHORITY ATTEST:
By: By:
General Manager Assistant Secretary
CITY OF FORT COLLINS, COLORADO ATTEST:
By: By:
Mayor City Clerk
EXHIBIT H
Page 3 of 6
EXHIBIT H
Page 4 of 6
EXHIBIT H
Page 5 of 6
EXHIBIT H
Page 6 of 6
SUMMARY OF DDA/WOODWARD
FAÇADE REIMBURSEMENT AGREEMENT
I. Introduction
A. Woodward is proposing to develop its project, the Link-n-Greens Project
Development Plan, #PDP130001 (the “Project”) in four (4) phases.
B. Woodward has requested DDA funding of its eligible building facades, which are
those fronting East Lincoln Avenue, the Poudre River and the Open Space Natural Area between
the Project and the Poudre River, as shown on an attached exhibit (“Eligible Facades”).
C. The DDA has received the Larimer County Assessor’s Estimate of Value
Worksheet dated January 29, 2013, relating to the Project.
D. Based on the Estimate of Value and the Phasing Schedule, the DDA has
calculated the maximum amount of Tax Increment Revenues (same definition as “Pledged Tax
Increment Revenues” in Business Assistance Agreement) available per Phase to reimburse
Woodward for the design and construction costs of its Eligible Facades.
E. Woodward and the DDA desire to enter into an agreement whereby the DDA,
utilizing its Line of Credit, can annually make payments to Woodward to reimburse Façade
Improvement costs in exchange for the grant of Façade Easements to the DDA.
II. Agreement
A. Commitments to Proceed with Project and Acquire the Property by April 30,
2013.
B. Maximum Façade Reimbursements
1. By Phases:
Phase 1: $1,500,000
Phase 2: $ 800,000
Phase 3: $ 900,000
Phase 4: $ 600,000
2. Total Reimbursement: Up to $3,800,000
C. Description of Eligible Façade Improvements by Phase:
Phase 1: The facia, soffits, exterior walls, signage, doors, windows, canopies and
all structural support materials therefor for the south side of the Industrial
Turbomachinery Systems Building, the south side of the Cafeteria/Multi-Purpose
Building and the north side of the Production Support Building;
EXHIBIT I
Page 1 of 3
Phase 2: The facia, soffits, exterior walls, signage, doors, windows, canopies and
all structural support materials therefor for the southwest side of the Headquarters
– Office Facility;
Phase 3: The facia, soffits, exterior walls, signage, doors, windows, canopies and
all structural support materials therefor for the southwest side of the Engine
Systems Facility Building; and
Phase 4: The facia, soffits, exterior walls, signage, doors, windows, canopies and
all structural support materials therefor for the north side of the Energy
Technology (Test) Center Building.
D. Conditions precedent to reimbursement for each set of Eligible Façade
Improvements by Phase:
1. Final designs submitted to and approved by DDA Board; DDA façade
design policies will be attached to the Façade Reimbursement Agreement as an
exhibit (i.e. elements relating to quality materials, pedestrian-friendly street
presentation and timeless design).
2. Construction to be completed in accordance with final designs.
3. Customary documentation provided to DDA regarding such completion
and actual eligible design and construction costs; DDA staff certification of total
DDA façade reimbursement obligation for the Phase based on actual costs up to
the maximum reimbursement amount for the Phase.
4. Execution of a façade easement for each façade funding request in
accordance with façade easement form attached to the Façade Reimbursement
Agreement as an exhibit.
5. Title insurance provided for each closing by Woodward and payment of
closing costs.
E. Reimbursement of Façade Costs
1. By Phase, with DDA reimbursement obligation triggered by closing on
Façade Easements in each Phase.
2. One year from completion of Phase 1 improvements (anticipated to be
2016), payments made annually on December 1
st
, from DDA’s Line of Credit in
accordance with a Payment Schedule using Tax Increment Revenues based on
Assessor’s Estimate of Value and the Phasing Schedule.
EXHIBIT I
Page 2 of 3
3. Reimbursement subject to annual DDA Board resolution recommending
City Council appropriation of a Line of Credit draw equal to annual amount of the
façade reimbursement expenditure and the debt service from Tax Increment
Revenues to service the Line of Credit debt and City Council adoption of an
ordinance appropriating the Line of Credit draw equal to the annual amount of the
façade reimbursement expenditure and the debt service from Tax Increment
Revenues to service the Line of Credit debt.
4. [Discuss Available Tax increment Revenue allocation between Bond
payment and Façade reimbursements; currently 30/70]
5. If Phases 2, 3 and/or 4 are delayed beyond the completion dates shown on
the Phasing Schedule the Façade reimbursement amount will be proportionately
reduced based on reduced Tax Increment Revenues resulting from such delay, in
accordance with an attached exhibit (based on Assessor’s Estimate of Value and
the Phasing Schedule). [Note: Depending on resolution of the interest rate and
allocation of Tax Increment Revenues to payment of the Bond and to the
façade reimbursement, a 24-month delay in the Phasing Schedule could
potentially be accommodated.]
F. Façade Easements
1. 25-year term.
2. Continuing obligations:
• Maintenance of facade improvements.
• Maintaining adequate insurance.
• Prior DDA approval for alterations or additions to façades funded by
DDA (including signage).
G. Covenant not to seek a reduction in the Project’s property tax assessed valuation
or a tax abatement to an amount below that needed to generate sufficient Tax Increment
Revenues to pay the Façade Reimbursement and the Bond based on the Estimate of
Value and the Phasing Schedule. [Note: Depending on resolution of the interest rate
and allocation of Tax Increment Revenues to payment of the Bond and to the façade
reimbursement, a 24-month delay in the Phasing Schedule could potentially be
accommodated.]
H. Representation regarding environmental conditions of the Property.
EXHIBIT I
Page 3 of 3
34
EXHIBIT J
FORM OF THE BOND
UNITED STATES OF AMERICA
STATE OF COLORADO COUNTY OF LARIMER
CITY OF FORT COLLINS
DOWNTOWN DEVELOPMENT AUTHORITY
SUBORDINATE TAX INCREMENT REVENUE BOND
SERIES 2013A
Date of Bond: ______ __, 2013
The City of Fort Collins, in the County of Larimer and State of Colorado, for value
received, hereby promises to pay to the order of Woodward, Inc., a Delaware corporation (the
“Company”), in accordance with the terms of the Agreement with Woodward, Inc., dated
______ __, 2013, among the City, The Fort Collins, Colorado, Downtown Development
Authority and the Company, as the same may be amended, restated or modified (the
“Agreement’), the principal sum of S i x M i l l i o n F i f t y T h o u s a n d Dollars
($6,050,000) plus any compounded interest, as set forth in the Agreement (the
“Reimbursement Amount”). All capitalized terms used and not otherwise defined in this Bond
shall have the respective meanings ascribed to them in the Agreement. The unpaid principal
balance of this Bond at any time shall be the total amount funded by the Company to design,
acquire, construct and install the Improvement Projects pursuant to the Agreement, less the
amount of payments of the principal made on this Bond.
Interest shall accrue on this Bond in accordance with the provisions set forth in the
Agreement. Payments on this Bond shall be made in accordance with the provisions set forth
in the Agreement. All such payments of principal and interest shall be made in lawful
currency of the United States in immediately available funds as directed in writing by the
Company.
This Bond is a special and limited obligation of the City payable solely out of and
secured by a pledge (but not necessarily an exclusive pledge) of the Pledged Tax Increment
Revenues, all as more specifically provided in the Agreement. At the time of issuance of this
Bond, certain bonds and other obligations are outstanding that have a lien on the Pledged Tax
Increment Revenues that is superior and senior to the lien thereon of this Bond. Additional
bonds and other types of securities may be issued and made payable from the Pledged Tax
Increment Revenues having a lien thereon superior and senior to the lien of this Bond in
accordance with the provisions of the Agreement.
This Bond does not constitute a debt or an indebtedness of the City within the meaning of
any constitutional, charter or statutory provision or limitation of the State of Colorado or of the
City. This Bond is not a general obligation of the City, and the full faith and credit of the City is
not pledged for the payment of the principal of or interest on this Bond.
Page 1 of 4
35
Reference is hereby made to the Agreement, and to any and all modifications and
amendments thereof, for a description of the provisions, terms and conditions upon which this
Bond is issued and secured, including, without limitation, the nature and extent of the security
for this Bond, the bonds and other obligations that are currently outstanding and that have a lien
on the Pledged Tax Increment Revenues that is senior to the lien thereon of this Bond, provisions
with respect to the collection and disposition of the Pledged Tax Increment Revenues, and the
nature and extent of the security and pledge afforded thereby for the payment of the principal of
and interest on this Bond.
This Bond is authorized and issued for the purpose of financing certain improvements and
projects pursuant to, by virtue of and in full conformity with the Constitution of the State of
Colorado, the City Charter, the Downtown Development Authority Act, and all other laws of the
State of Colorado thereunto enabling and pursuant to an election held November 7, 2006, and the
ordinance duly adopted prior to the issuance of this Bond. This Bond is also issued pursuant to
Title 11, Article 57, Part 2, C.R.S. (the “Supplemental Act”). Pursuant to Section 11-57-210 of
the Supplemental Act, this recital shall be conclusive evidence of the validity and the regularity
of the issuance of the Bond after its delivery for value.
Interest on this Bond is not excluded from gross income or alternative minimum taxable
income under federal income tax laws in effect on the date of delivery of this Bond.
IN WITNESS WHEREOF, the City has caused this Bond to be executed in its name and
on its behalf with the facsimile or manual signature of the Mayor of the City, to be sealed with a
facsimile or manual impression of the seal of the City, to be attested with the facsimile or manual
signature of the City Clerk of the City, and to be countersigned with the manual signature of the
Financial Officer of the City.
CITY OF FORT COLLINS, COLORADO
(CITY) By: (Facsimile or Manual Signature)
(SEAL) Mayor
ATTEST:
(Facsimile or Manual Signature)
City Clerk
Countersigned:
(Manual Signature)
Financial Officer
Page 2 of 4
36
FUNDING PROVIDED BY COMPANY
The following amounts have been funded by the Company in accordance with the
terms of the Agreement authorizing the issuance of this Bond.
Date of Funding Amount of Funding
Page 3 of 4
PUBFIN/1630663.8 37
PAYMENT PANEL
The following installments of principal of this Bond have been paid in accordance
with the terms of the Agreement authorizing the issuance of this Bond.
Date of
Payment
Principal
Paid
Signature of
Authorized Representative of
the Company
Page 4 of 4
City of Fort Collins
Economic Development - Use Tax Rebate Application
2013
Company Name
Mailing Address
Contact Person
Project Information:
Date Project Operations began in Fort Collins
Briefly describe project operations?
2011 property tax valuation
2012 property tax valuation
Employee Information:
Rebate Information:
Signature of Taxpayer Title Date
OTHER INFORMATION
Annual Gas Consumption ______________
Purchase price of Eligible Equipment purchased in 2013: __________________________________
Amount of rebate requested: ____________________________________
I certify that the company requesting this rebate is in compliance with all Federal, State and local laws and regulations for the
manufacturing facility located in Fort Collins. I also certify that the company is current with all City of Fort Collins contractual, payment
and sales and use tax obligations.
2012 personal property tax valuation _____________________
Square footage of Project facility _________________________
Who is your natural gas provider? ___________________________
The following information is mandatory for the rebate process.
All financial information contained in this application will be confidential.
Phone Number __________________________
Fort Collins License Number ______________
2011 personal property tax valuation _____________________
Square footage of entire Fort Collins facility _________________________________
A claim by an agent must be accompanied by power of attorney.
Number of full time equivalent employees as of December 31, 2013 ________ Median Annual Wage ______________
Number of temp., seasonal & contract employees as of 12/31/13 ___________ Median Annual Wage ______________
I hereby authorize the City to review and consider sales and use tax records, vendor records, contract and other information available
regarding the company's eligibility for a rebate under this program. I further authorize the City to release to the public information
contained in this application, as well as information regarding any rebates issued to the company under this rebate program.
I declare under penalty of perjury that this claim (including any accompanying schedules and statements) has been examined by me
and to the best of my knowledge and belief is true and made in good faith for the stated purpose. Further, I represent and warrant that I
have the necessary authority to execute this application on behalf of the company, and to make the above certifications, authorizations,
and declaration.
Exhibit K Page 1of 2
You must provide a list of the Eligible Equipment purchased that includes the following:
1. Invoice number
2. Invoice date
3. Vendor name
4. Description of machinery purchased
5. Intended use of the machinery
6. Date the use tax was paid to the City of Fort Collins
7. Purchase price of the equipment
8. Amount of purchase subject to Fort Collins tax
9. Amount of Fort Collins use tax paid
You are not required to submit copies of the invoices for which the rebate is requested. However, in the event
that there are questions regarding the eligibility of certain equipment, supporting documentation, including
invoices, will be required.
Submit applications and list of equipment purchased to:
City of Fort Collins
Financial Services
Attn: Jessica Ping-Small
P.O. Box 580
Fort Collins, CO 80522-0580
For specific questions regarding the rebate program, call Jessica Ping-Small at (970) 221-6626.
For general sales and use tax questions, call the Sales Tax Office at (970) 221-6780.
Application may be submitted by March 31, 2014
Exhibit K Page 2of 2
ORDINANCE NO. 056, 2013
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROPRIATING GENERAL FUND RESERVES TO FUND
A REIMBURSEMENT RESERVE FUND IN CONNECTION WITH
A COMMUNITY DEVELOPMENT AND BUSINESS ASSISTANCE AGREEMENT
BETWEEN THE CITY, DOWNTOWN DEVELOPMENT AUTHORITY
AND WOODWARD, INC.,
REGARDING THE LINK-N-GREENS DEVELOPMENT
WHEREAS, Woodward Inc., (“Woodward”) has proposed to relocate and construct its
new headquarters and expand its manufacturing and office facilities on the site commonly
referred to as the Link-N-Greens site (the “Project”) in Fort Collins; and
WHEREAS, the City Council has on this same date approved pursuant to Ordinance No.
055, 2013, authorizing an agreement between the City, the Downtown Development Authority
and Woodward regarding business assistance to be provided to Woodward and other covenants
and agreements related to Woodward’s proposed development of the Project (the “Agreement”),
along with a related advance of funds by Woodward, and other related agreements; and
WHEREAS, pursuant to the Agreement, the City has committed to construct certain
public improvements, including right of way improvements and open space restoration, as well
as the relocation of a power transmission line (the “Improvements”); and
WHEREAS, in addition, the Agreement provides that Woodward agrees to advance (the
“Advance”) to the City up to $6.05 million, to be repaid from Pledged Tax Increment Revenues,
as defined in the Agreement (the “TIF”), in order to fund the Improvements; and
WHEREAS, while it is hoped and intended by the parties that the TIF will be sufficient
to cover the full cost of the Improvements, along with other costs and contributions as described
in the Agreement, the timing and extent of the Project, could impact whether the full cost of the
same will be satisfied by the TIF generated by the Project, and
WHEREAS, in order to ensure that the obligation to construct the Improvements is
adequately supported by available funds, staff has proposed that the City appropriate the amount
of $2.272 million for a reimbursement reserve fund, as described in the Agreement, although the
appropriated funds may not ultimately be needed in order to carry out the terms of the
Agreement; 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 reserves in the General
Fund the sum of TWO MILLION TWO HUNDRED SEVENTY-TWO THOUSAND
DOLLARS ($2,272,000) for the purpose of funding a reimbursement reserve fund as described
in the Agreement.
Introduced, considered favorably on first reading, and ordered published this 26th day of
March, A.D. 2013, and to be presented for final passage on the 2nd day of April, A.D. 2013.
_________________________________
Mayor
ATTEST:
_____________________________
City Clerk
Passed and adopted on final reading on the 2nd day of April, A.D. 2013.
_________________________________
Mayor
ATTEST:
_____________________________
City Clerk