HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 05/21/2013 - FIRST READING OF ORDINANCE NO. 069, 2013, APPROPRIDATE: May 21, 2013
STAFF: Laurie Kadrich
Timothy Wilder
AGENDA ITEM SUMMARY
FORT COLLINS CITY COUNCIL 9
SUBJECT
First Reading of Ordinance No. 069, 2013, Appropriating Prior Year Reserves in the Keep Fort Collins Great Fund to
Support the Landmark Rehabilitation Loan Program for 2013.
EXECUTIVE SUMMARY
This is a request for an appropriation of $33,000 to support the City’s Landmark Rehabilitation Loan Program from
prior years in the Keep Fort Collins Great Fund (KFCG). The Landmark Rehabilitation Loan Program is a highly
successful financial incentive program for encouraging the sustainable revitalization of historic residential and
commercial structures. The Program was funded with Keep Fort Collins Great funds in the amount of $25,000 each
year for 2013-2014. However, this year alone, the popular program received over $65,000 in loan funding requests
from 12 applicants for 24 projects costing over $206,200 in materials and services. Without Rehabilitation Loan
Program funding, many of these projects could not proceed.
The request is for the use of KFCG Other Community Priority prior year reserves created by the 2012 unspent Design
Assistance Program (DAP) budget. Both the Loan Program and the DAP were funded in 2012 from KFCG - Other
Community Priorities. These two incentive programs are closely linked sub-programs of the Historic Preservation
Program, and provide a continuum of financial support for qualified historic preservation projects.
BACKGROUND / DISCUSSION
Established by Council in 1994 with adoption of Chapter 14, Article V of the City Code, the Landmark Rehabilitation
Loan Program is a critical financial program for encouraging the protection and revitalization of historic residential and
commercial buildings, most notably within the downtown and Eastside/Westside Neighborhoods. Since 2000, $258,000
from City funding has leveraged $800,000 in private investment in 86 historic projects (Attachment 2).
The Rehabilitation Loan Program is a revolving loan program. Owners of historic landmarks can apply for up to $7,500
in zero-interest loan funds for exterior rehabilitation of a property. Applicants receiving loans have up to two years to
complete the rehabilitation work. Loans are repaid through the sale or transfer of the property. Upon repayment, the
funds return to the program for further distribution. With a pool of over 10,000 potentially qualifying buildings and
structures, the program is very popular with the public and the demand for funding grows every year. The City
averages 8 applications a year. However, the backlog of historic rehabilitation projects appears to be growing as
owners delayed home repair during the recession.
In 2013, the City received 12 applications for loan funding in the amount of $66,000. Five applicants were awarded
funding for a total of $26,400. These projects included asbestos siding abatement, casement window repair, porch
restoration, and repair of a carved stone cornice. There were seven applications in 2013 that could not be funded,
and several projects received only partial funds. Critical projects without funding included repair of windows on a
historic farmhouse for its reuse as the Larimer County Child Advocacy Center, storm window installation for energy
efficiency, roof replacement with wood shingles, chimney repairs to address lost bricks and damaged mortar, and
others. Some property owners may not be able to afford to complete the work without City assistance. If the work
is not completed, the historic structures would continue to deteriorate and some elements might need to be replaced
rather than repaired in the future.
The City’s two historic preservation incentive programs, the Design Assistance Program (DAP) and the Landmark
Rehabilitation Loan Program, are sub-programs within the overall Historic Preservation Program. They are closely
linked and work along different areas of the historic rehabilitation continuum. The DAP provides funds for the work
of qualified professionals on the design of historic rehabilitation projects, while the loan program provides matching
funds for construction of qualified rehabilitation projects. The programs are synergistic and ensure that historic
preservation work is of a high quality, providing long-term preservation of historic resources. Both programs were
funded in 2012 through KFCG – Other Community Priorities: Historic Preservation Programming. In the future, the
May 21, 2013 -2- ITEM 9
programs will be set up to draw from a combined pot of historic preservation incentive funds so that funding can be
directed to the area of greatest community need.
In 2012, the DAP did not have sufficient demand for expenditure of the entire KFCG allocation. Approximately $33,000
was remaining for the DAP after 2012. Rather than request a reappropriation back into the DAP, staff is requesting
that $33,000 be funded from KCGG Other Community Priorities prior year reserves to be used to fund projects
approved through the Landmark Rehabilitation Loan Program in 2013, which had demand that outstripped the
available funding.
FINANCIAL / ECONOMIC IMPACTS
This Ordinance would result in a one-time cost of $33,000 to the City. The request is for the appropriation of KFCG
Other Community Priority prior year reserves created by the 2012 unspent DAP budget. The City funding would be
matched by approximately $50,000 by owners of the historic properties.
ENVIRONMENTAL IMPACTS
Community and social sustainability is promoted by enhancing the quality, livability and attractiveness of our core
neighborhoods. Reuse of historic buildings and greening existing buildings are effective tools for environmental
stewardship. Many older buildings are remarkably energy efficient because of their site sensitivity, quality of
construction, and use of passive heating and cooling, and can be retrofitted to meet current green standards without
compromising historic character.
STAFF RECOMMENDATION
Staff recommends adoption of this Ordinance on First Reading.
BOARD / COMMISSION RECOMMENDATION
The Landmark Preservation Commission voted 9-0 on April 10, 2013 to approve a request for additional funding to
support the City’s Landmark Rehabilitation Loan Program for 2013.
ATTACHMENTS
1. Landmark Preservation Commission Minutes, April 10, 2013
2. Landmark Rehabilitation Loan Brochure
3. Landmark Rehabilitation Loan Program Funding Statistics
ATTACHMENT 2
Landmark Rehabilitation Loan Program Funding Statistics
0
2
4
6
8
10
12
14
16
Number of Applications
Loan Applications and Awards by Year
Submittals
Awards
106
86
0
20
40
60
80
100
120
Applications Awarded
Total Loan Applications and Awards, 2001‐2013
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
$180,000
Loan Funding and Leveraging by Year
Loan $
Matching $
$258,182
$792,370
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
Amount Loaned Matching Funds
Total Loan Funding and Leveraging, 2001‐2013
ORDINANCE NO. 069, 2013
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROPRIATING PRIOR YEAR RESERVES IN THE KEEP FORT COLLINS
GREAT FUND TO SUPPORT THE LANDMARK REHABILITATION
LOAN PROGRAM FOR 2013
WHEREAS, the Landmark Rehabilitation Loan Program (the “Landmark Program”) was
established in 1994 and is a critical financial program for encouraging the protection and
revitalization of historic residential and commercial structures; and
WHEREAS, the Landmark Program provides financial assistance to complete construction
rehabilitation work such as asbestos siding abatement, casement window repair, porch restoration,
roof and chimney repairs, and repair of carved stone cornice; and
WHEREAS, rehabilitation loans provided to property owners are paid back to the City at the
time of the sale or transfer of the benefitted property, and those funds are returned to the Landmark
Program for further distribution; and
WHEREAS, the Landmark Program is closely linked with the other historic preservation
incentive sub-program, the Design Assistance Program or “DAP”, that provides funding assistance
in the design of historic rehabilitation projects; and
WHEREAS, both sub-programs were funded in 2012 under the Keep Fort Collins Great -
Other Community Priorities fund (the “KFCG”) and are funded in 2013 and 2014 by KFCG; and
WHEREAS, there is a backlog of historic rehabilitation projects proposed and the Landmark
Program does not have sufficient funds to meet the application requests for funding assistance in
2013; and
WHEREAS, the DAP had approximately $33,000 in unutilized funding available after 2012
that went back into KFCG Other Community Priorities reserves without being appropriated; and
WHEREAS, the one-time request for KFCG Other Community Priorities reserves of $33,000
would be used in 2013 to fund projects approved through the Landmark Program and would be
matched by approximately $50,000 by owners of the benefitted historic properties; 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 Keep Fort Collins
Great Fund the sum of THIRTY THREE THOUSAND DOLLARS ($33,000) to support the City’s
Landmark Rehabilitation Loan Program for 2013.
Introduced, considered favorably on first reading, and ordered published this 21st day of
May, A.D. 2013, and to be presented for final passage on the 4th day of June, A.D. 2013.
_________________________________
Mayor
ATTEST:
_____________________________
City Clerk
Passed and adopted on final reading on the 4th day of June, A.D. 2013.
_________________________________
Mayor
ATTEST:
_____________________________
City Clerk