HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 07/16/2013 - ITEMS RELATING TO APPROPRIATIONS FOR WOODWARD RELADATE: July 16, 2013
STAFF: John Voss
AGENDA ITEM SUMMARY
FORT COLLINS CITY COUNCIL 13
SUBJECT
Items Relating to Appropriations for Woodward Related Public Improvements.
A. First Reading of Ordinance No. 098, 2013, Appropriating Unanticipated Revenue in the Capital Projects Fund
and Authorizing the Transfer of Existing Appropriations from the Natural Areas Fund to the Capital Projects
Fund for Woodward Related Public Improvements.
B. First Reading of Ordinance No. 109, 2013, Waiving the Application of the Art in Public Places Requirements
in Article XII of Chapter 23 of the City Code to Improvements Constructed Pursuant to the City’s Agreement
with Woodward, Inc., and the Downtown Development Authority Regarding the Link-N-Green Development.
EXECUTIVE SUMMARY
Council approved the public improvement portion of the Woodward incentive package in April 2013. The City of Fort
Collins agreed to provide assistance for Woodward’s relocation, construction and expansion. The following are the
projects to be funded:
Transmission Line Relocation $1,297,080
Right-of-Way Improvements 1,750,000
Open Space Improvements 3,500,000
$6,547,000
The projects will be funded through two sources: $6,047,080 from DDA contributions and $500,000 from 2013
appropriations existing in the Natural Areas Fund.
Ordinance No. 109, 2013, exempts the right-of-way improvements under the Woodward Agreement from the
requirement to contribute 1% to Art in Public Places because the contribution would not be required if the developer
were constructing the Improvements and the City’s management of the right-of-way improvement project is being
provided as part of the Woodward incentive package.
BACKGROUND / DISCUSSION
On April 2, 2013, Council adopted Ordinance No. 056, 2013, Appropriating General Fund Reserves to Fund a
Reimbursement Reserve Fund in Connection with an Agreement between the City, Downtown Development Authority
(DDA) and Woodward, Inc., Regarding the Link-N-Green Development. The agreement provided that Woodward
would advance up to $6.05 million to the City to be repaid by the DDA through Pledged Tax Increment Revenues
(“TIF”) to fund certain public improvements, including right-of-way improvements and open space restoration, as well
as the relocation of a power transmission line. To allow the commencement of the capital improvement projects, City
staff is requesting the immediate appropriation of $6,547,000. The following are the projects to be funded:
Transmission Line Relocation $1,297,080
ROW Improvements 1,750,000
Open Space Improvements 3,500,000
$6,547,000
Transmission Line — Design plans resulted in placing one new transmission tower in the Williams Natural Area just
south of the Mulberry/Lemay Avenue intersection and the removal of three transmission towers northwest of Mulberry;
two in the Springer Natural Area and one at the Water Reclamation natural area. Ordinance No. 063, 2013, authorizing
the necessary easements from the City, was adopted on second reading on May 7, 2013.
Specifically, one pole will be added in the Williams Natural Area (reference pole #6, yellow line. The general size of
the pole will be approximately 100 to 125 feet tall and 3 to 5 feet in circumference at the base, depending upon the
distance from pole #5. Placement will be approximately 150 feet south of the existing bike trail and approximately 60
July 16, 2013 -2- ITEM 13
feet west of the sidewalk that parallels south bound Lemay Avenue. Contingency placement will be known once the
following items are specified:
• Signal light/pole on the northwest corner of Mulberry and Lemay for the westbound traffic on Mulberry
• Proposed restaurant placement at the southeast end of the Woodward Property
• New bike trail route across Lemay.
Funds for the Transmission Line were appropriated in the General Fund in Ordinance No. 076, 2013, on June 4, 2013.
However, City staff recommends keeping all the public improvement funds related to the Woodward project in the
same fund, the Capital Projects Fund (400). The General Fund appropriation will be frozen once this ordinance is
approved.
Right-of-way (ROW) 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 31-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.
Art in Public Places Exception—1% of funds appropriated by or for a City construction project are to be allocated to
Art in Public Places (for projects $250,000 or greater). The transmission line relocation is not a City construction
project because it is being paid for by the DDA, the work is being done by Platte River Power Authority and there are
no City improvements to be constructed through the project. Consequently, the transmission line portion of the project
is not required to contribute to APP. Under the City Code, the ROW improvements must be constructed as a condition
of development approval. If the developer provides the improvements, it is not a City construction project, so the 1%
for APP is not required. In this instance, the City has agreed to construct the ROW improvements using funds paid
by Woodward to the DDA and then provided to the City to be appropriated by the City for use for the project. This
triggers the 1% for APP, which is not in the project budget. Adoption of Ordinance No. 109, 2013, exempts the ROW
Improvements from the APP contribution. Staff is recommending adoption of Ordinance No. 109, 2013, because the
APP contribution would not be required if the developer were constructing the improvements. The City agreed to
manage the construction as an incentive to facilitate development of the project. Finally, the Open Space
Improvements will contribute 1% to the extent required for project elements covered by APP, such as the trail.
Restoration of a natural area does not require an APP contribution.
FINANCIAL / ECONOMIC IMPACTS
The appropriation of $6,547,080 in the Capital Projects Fund will provide the necessary funds for the Woodward
project to move forward. The transmission line relocation is a critical path component of the redevelopment of the new
Woodward site.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
ORDINANCE NO. 098, 2013
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROPRIATING UNANTICIPATED REVENUE IN THE CAPITAL PROJECTS FUND
AND AUTHORIZING THE TRANSFER OF EXISTING APPROPRIATIONS FROM THE
NATURAL AREAS FUND TO THE CAPITAL PROJECTS FUND FOR WOODWARD
RELATED PUBLIC IMPROVEMENTS
WHEREAS, pursuant to Ordinance No. 055, 2013, the City, the Downtown Development
Authority (“DDA”), and Woodward Inc (“Woodward”) entered into an agreement which provides
that Woodward will advance up to $6.05 million to the DDA to fund certain public improvements,
to be made on or near the former Link-N-Greens Golf Course in connection with the
redevelopment of that property (the “Woodward Site”) and the City will act as either the project
manager or construct the public improvements; and
WHEREAS, the improvements include right-of-way improvements ($1,750,000), open
space restoration ($3,500,000), and the relocation and installation of a power transmission line
($1,297,080) that currently crosses the Woodward Site for a total cost of $6,547,080; and
WHEREAS, Woodward has agreed to advance funds to the City through the DDA in
amount of $6,047,080 for these public improvements, and the Natural Areas Fund is providing
$500,000 for the open space restoration; and
WHEREAS, on June 4, 2013, Ordinance No. 076, 2013, the City appropriated unanticipated
DDA revenue in the amount of $1,297,080 in the General Fund for the relocation and installation of
the transmission line on the Woodward Site; and
WHEREAS, City staff recommends keeping all of the public improvement funds related to
the Woodward Site in the Capital Projects Fund; and
WHEREAS, the DDA revenue will now be recorded in the Capital Projects Fund and not
the General Fund, so the General Fund appropriations in the amount of $1,297,080 will be treated
as unavailable for expenditure after this ordinance is approved; and
WHEREAS, Article V, Section 9, of the City Charter permits the City Council to make
supplemental appropriations by ordinance at any time during the fiscal year, provided that the total
amount of such supplemental appropriations, in combination with all previous appropriations for
that fiscal year, does not exceed the current estimate of actual and anticipated revenues to be
received during the fiscal year; and
WHEREAS, City staff has determined that the appropriation of the revenue as described
herein will not cause the total amount appropriated in the Capital Projects Fund to exceed the
current estimate of actual and anticipated revenues to be received in that fund during any fiscal
year.
WHEREAS, Article V, Section 10, of the City Charter authorizes the City Council to
transfer by ordinance any unexpended and unencumbered appropriated amount or portion thereof
from one fund (project) to another fund (project), provided that the purpose for which the
transferred funds are to be expended remains unchanged.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1. That the unexpended appropriated amount of FIVE HUNDRED THOUSAND
DOLLARS ($500,000) in the Natural Areas Fund is hereby authorized for transfer to the Capital
Projects Fund - Woodward Public Improvements Project and appropriated therein.
Section 2. That there is hereby appropriated from unanticipated revenue in the Capital
Projects Fund the sum of SIX MILLION FORTY-SEVEN THOUSAND EIGHTY DOLLARS
($6,047,080) for the Woodward Public Improvements Project.
Introduced, considered favorably on first reading, and ordered published this 16th day of
July, A.D. 2013, and to be presented for final passage on the 20th day of August, A.D. 2013.
_________________________________
Mayor
ATTEST:
_____________________________
City Clerk
Passed and adopted on final reading on the 20th day of August, A.D. 2013.
_________________________________
Mayor
ATTEST:
_____________________________
City Clerk
ORDINANCE NO. 109, 2013
OF THE COUNCIL OF THE CITY OF FORT COLLINS
WAIVING THE APPLICATION OF THE ART IN PUBLIC PLACES REQUIREMENTS
IN ARTICLE XII OF CHAPTER 23 OF THE CODE OF THE CITY OF FORT COLLINS
TO IMPROVEMENTS CONSTRUCTED PURSUANT TO THE CITY’S
AGREEMENT WITH WOODWARD, INC., AND THE DOWNTOWN
DEVELOPMENT AUTHORITY REGARDING THE LINK-N-GREEN DEVELOPMENT
WHEREAS, pursuant to Ordinance No. 055, 2013, the City, the Downtown Development
Authority (“DDA”), and Woodward Inc (“Woodward”) entered into an agreement which provides
that Woodward will advance up to $6.05 million to the DDA to fund certain public improvements,
to be made on or near the former Link-N-Greens Golf Course in connection with the redevelopment
of that property (the “Woodward Site”) and the City will act as either the project manager or
construct the public improvements; and
WHEREAS, the public improvements include right-of-way improvements ($1,750,000),
open space restoration ($3,500,000), and the relocation and installation of a power transmission line
($1,297,080) that currently crosses the Woodward Site for a total cost of $6,547,080; and
WHEREAS, Woodward has agreed to advance funds to the City through the DDA in the
amount of $6,047,080 for these public improvements, and the Natural Areas Fund is providing
$500,000 for the open space restoration; and
WHEREAS, on June 4, 2013, Ordinance No. 076, 2013, the City appropriated unanticipated
DDA revenue in the amount of $1,297,080 in the General Fund for the relocation and installation
of the transmission line on the Woodward Site; and
WHEREAS, on this date the City Council has adopted Ordinance No. 098, 2013,
appropriating unanticipated revenue in the Capital Projects Fund and authorizing the transfer of
existing appropriations from the Natural Areas Fund to the Capital Projects Fund for the public
improvements; and
WHEREAS, Article XII of Chapter 23 of the City Code, regarding Art in Public Places
(“APP”), requires that appropriations for construction projects estimated to cost over $250,000, must
include an amount equal to one percent of the estimated project cost for works of art; and
WHEREAS, the one-percent APP requirement applies only to construction projects by or for
the City, and the relocation and installation of the Platte River transmission line the City will not
constitute a City improvement; and
WHEREAS, the one-percent APP requirement applies only to construction, rehabilitation,
renovation, remodeling or improvement of a building, structure, street, sidewalk, park, utility or
other public improvement, and the open space improvements for which DDA funds are appropriated
in Ordinance No. 098, 2013, primarily constitute land restoration activites that are not generally
treated as construction under the APP provisions; and
WHEREAS, as part of the open space improvements staff will arrange for the APP one-
percent requirement to be met using appropriate City funds to the extent required for project
elements that constitute construction, such as the trail; and
WHEREAS, the right-of-way improvements for which funds are appropriated in Ordinance
No. 098, 2013, generally fall within the scope of the one-percent APP requirement as written; and
WHEREAS, the financing arrangements established in the Agreement are unique and result
in the undertaking by the City of developer right-of-way improvements projects that would not
normally be the responsibility of the City; and
WHEREAS, the potential application of the one-percent APP requirement was not taken into
account in developing the financing and cost estimates for the Agreement, and the funds provided
to the City for the improvements do not include funds for the APP requirement; and
WHEREAS, in light of the foregoing, the City Manager has requested that the City Council
waive the application of Article XII of Chapter 23 of the City Code to the public improvements to
be constructed by the City using funds provided by Woodward through the DDA pursuant to the
Agreement.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS that the application and enforcement of the Article XII of Chapter 23 of the City Code is
hereby waived to the extent it may apply to the public improvements to be constructed by the City
using funds provided by Woodward through the DDA pursuant to the Agreement.
Introduced, considered favorably on first reading, and ordered published this 16th day of July,
A.D. 2013, and to be presented for final passage on the 20th day of August, A.D. 2013.
_________________________________
Mayor
ATTEST:
_____________________________
City Clerk
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Passed and adopted on final reading on the 20th day of August, A.D. 2013.
_________________________________
Mayor
ATTEST:
_____________________________
City Clerk
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