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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 09/03/2013 - SECOND READING OF ORDINANCE NO. 114, 2013, AMENDINDATE: September 3, 2013 STAFF: Ted Shepard AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 11 SUBJECT Second Reading of Ordinance No. 114, 2013, Amending the Definition of Large Base Industry as Contained in Article 5 of the Land Use Code. EXECUTIVE SUMMARY This Ordinance, unanimously adopted on First Reading on August 20, 2013, amends the definition of Large Base Industry in the Land Use Code to expand the types of firms that may qualify beyond manufacturing to also include firms that provide products or services for local and regional users that are not manufactured but are of comparable economic value to manufactured goods, or by establishing corporate offices. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. Copy of First Reading Agenda Item Summary - August 20, 2013 (w/o attachments) COPY COPY COPY ATTACHMENT 1 DATE: August 20, 2013 STAFF: Ted Shepard AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 19 SUBJECT First Reading of Ordinance No. 114, 2013, Amending the Definition of Large Base Industry as Contained in Article 5 of the Land Use Code. EXECUTIVE SUMMARY This Ordinance amends the definition of Large Base Industry in the Land Use Code to expand the types of firms that may qualify beyond manufacturing to also include firms that provide products or services for local and regional users that are not manufactured but are of comparable economic value to manufactured goods, or by establishing corporate offices. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION As presently stated the definition of Large Base Industry contains three parameters by which a firm may qualify: 1. Produces, or will produce, manufactured goods, at least eighty percent of which are, or will be, produced for export to areas outside of the city; 2. Employs, or will employ no fewer than one hundred persons for at least thirty-five hours of year- round employment per week; 3. Owns or leases, or will own or lease, real property or equipment within the city limits that is used in the operation of the firm's business and that has, or will have, as of the date of the commencement of the firm's operation, a fair market value of no less than one hundred million dollars ($100,000,000.). As can be seen, the first qualification calls for the production of manufactured goods. The definition, however, is silent as to the provision of products and services that are of comparable economic value as manufactured goods but may be provided by products and services that are not necessarily manufactured. One example is medical services. Since there are soon to be significant changes in the delivery of medical services due to the federal Affordable Care Act and the State of Colorado Connect For Health, the medical services industry is poised for growth, not the least of which is general care hospitals, medical office buildings, urgent care clinics and emergency room facilities, all which could be included in a campus setting. Other firms that supply products or services either for export outside the region or by attracting outside economic activity include firms associated with internet and telecom, education, publishing and the establishment of corporate offices within the city. The jobs associated with the medical services industry and other comparable enterprises, are considered high-quality jobs. The services provided will attract patients and customers from outside the region. Further, there is a likelihood that such enterprises may development in phases over time, by being classified as a Large Base Industry, such facilities would then be eligible for long term vesting. No changes are proposed to the other two qualifying criteria which eligible firms are also required to satisfy: • Employs, or will employ no fewer than one hundred persons for at least thirty-five hours of year- round employment per week; COPY COPY COPY August 20, 2013 -2- ITEM 19 • Owns or leases, or will own or lease, real property or equipment within the city limits that is used in the operation of the firm's business and that has, or will have, as of the date of the commencement of the firm's operation, a fair market value of no less than one hundred million dollars ($100,000,000.). The proposed solution is to expand the current definition to include firms that provide other products and services that are not manufactured goods, or the establishment of corporate offices, and that may be developed over more than one phase. FINANCIAL / ECONOMIC IMPACTS In general, the proposed code revision, when combined with the existing vested rights provision, allows greater flexibility for firms that provide quality jobs to phase in their development over time to a greater extent than would otherwise be allowed. ENVIRONMENTAL IMPACTS There are no environmental impacts associated with this proposed Code revision. BOARD / COMMISSION RECOMMENDATION On August 8, 2013, the Planning and Zoning Board reviewed this amendment as part of its Consent Agenda and voted unanimously to recommend adoption of the Code revision. ATTACHMENTS 1. Planning and Zoning Board minutes, August 8, 2013 ORDINANCE NO. 114, 2013 OF THE COUNICL OF THE CITY OF FORT COLLINS AMENDING THE DEFINITION OF “LARGE BASE INDUSTRY” AS CONTAINED IN ARTICLE 5 OF THE LAND USE CODE WHEREAS, the existing definition of Large Base Industry contains three parameters by which a firm may qualify as a Large Base Industry, which parameters are that it: (1) produces, or will produce, manufactured goods, at least eighty percent of which are, or will be, produced for export to areas outside of the City; and (2) employs, or will employ no fewer than one hundred persons for at least thirty-five hours of year-round employment per week; and (3) owns or leases, or will own or lease, real property or equipment within the city limits that is used in the operation of the firm's business and that has, or will have, as of the date of the commencement of the firm's operation, a fair market value of no less than one hundred million dollars ($100,000,000.); and WHEREAS, City staff has recommended, and City Council agrees, that the first requirement stated in the definition of Large Base Industry should be amended to state that a particular firm can satisfy that requirement by providing certain kinds of products or services for local and regional users that are not manufactured but are of comparable economic value to manufactured goods, or by establishing local corporate offices to support their operations; and WHEREAS, the Planning and Zoning Board has recommended to the City Council that the definition of Large Base Industry contained in Section 5.2.1 of the Land Use Code be amended; and WHEREAS, the City Council has determined that it is in the best interests of the City that the definition of Large Base Industry contained in Section 5.2.1 of the Land Use Code be amended. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that the definition of “Large base industry” contained in Section 5.1.2 of the Land Use Code is hereby amended to read as follows: Large base industry shall mean a firm that: (1) produces, or will produce, manufactured goods, at least eighty (80) percent of which are, or will be, produced for export to areas outside of the city; or provides medical, internet, telecom, education or publishing products and services for local and regional users; or establishes corporate offices; and (2) employs, or will employ, no fewer than one hundred (100) persons for at least thirty-five (35) hours of year-round employment per week; and (3) owns or leases, or will own or lease, real property or equipment within the city limits that is used in the operation of the firm's business and that has, or will have, as of the date of the commencement of the firm's operation, a fair market value of no less than one hundred million dollars ($100,000,000.). Introduced, considered favorably on first reading, and ordered published this 20th day of August, A.D. 2013, and to be presented for final passage on the 3rd day of September, A.D. 2013. _________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on the 3rd day of September, A.D. 2013. _________________________________ Mayor ATTEST: _____________________________ City Clerk