HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/20/2007 - SECOND READING OF ORDINANCE NO. 136, 2007, ASSESSI ITEM NUMBER: 13
AGENDA ITEM SUMMARY DATE: November 20, 2007
FORT COLLINS CITY COUNCIL STAFF: Matt Baker
Chuck Seest
SUBJECT
Second Reading of Ordinance No. 136,2007,Assessing the Cost of Improvements in the Timberline
and Prospect Special Improvement District No. 94 in the City of Fort Collins, Colorado, and
Providing for the Payment and Collection Thereof.
RECOMMENDATION
Staff recommends adoption of this Ordinance on Second Reading.
EXECUTIVE SUMMARY
In October 2005,Council established the Timberline and Prospect Special Improvement District#94
(the "District'). The City has completed the improvements and is now prepared to assess the
District. This Ordinance,unanimously adopted on First Reading on November 6,2007,assesses the
District costs to the property owners benefitted by the improvements.
ATTACHMENTS
1. Copy of First Reading Agenda Item Summary-November 6, 2007.
ATTACHMENT 1
ITEM NUMBER: 19
AGENDA ITEM SUMMARY DATE: November 6, 2007
FORT COLLINS CITY COUNCIL STAFF: Matt Baker
Chuck Seest
SUBJECT
Hearing and First Reading of Ordinance No. 136,2007,Assessing the Cost of Improvements in the
Timberline and Prospect Special Improvement District No.94 in the City of Fort Collins,Colorado,
and Providing for the Payment and Collection Thereof.
RECOMMENDATION
Staff recommends adoption of this Ordinance on First Reading to close out the Timberline and
Prospect Special Improvement District No. 94 and begin the assessment of the District costs to the
property owners.
FINANCIAL IMPACT CC) PY
This Ordinance assesses the District costs to the property owners benefitted by the improvements.
Street improvements were completed for Timberline Road from Drake to Prospect. Most of the
improvements were adjacent to development and were constructed through the Street Oversizing
Program. These developments have also funded additional improvements needed in order to
proceed with their developments in accordance with the City's adequate public facilities requirement
from Section 3.7.3 of the Land Use Code.
Developers have contributed $2,500,000 to the City for the engineering design and construction of
the improvements to the Timberline and Prospect Intersection. The developers requested and the
City formed Special Improvement District#94 in order to assess undeveloped property for their fair
share of intersection improvements. Assessments collected will be forwarded to the original private
financiers of the District.
EXECUTIVE SUMMARY C 0 'P
In October 2005,Council established the Timberline and Prospect Special Improvement District#94
(the "District"). The City has completed the improvements and is now prepared to assess the
District. In accordance with Chapter 22 of the City Code, the City began the close out with
Resolution 2007-073,which accepted the improvements and ordered a notice to be sent to property
owners informing them of the assessment. A revised resolution,Resolution 2007-093,was adopted
on October 2, 2007,to correct certain items that may have been confusing in the materials included
November 6, 2007 -2- Item No. 19
with the original Resolution. A public hearing date of November 6, 2007 was set to hear any
objections from the property owners.
Based on the procedures speci he C o that has been provided to the
property owners within the Di ct, th pert er av November 5th to file objections
to the proposed assessments. s of th time pletion f this Agenda Item Summary, no
protests have been received N er heari A memorandum with updated
information regarding any protests that are received will be provided to the Council before the
meeting on the 6th. The public hearing is an important part of the Special Improvement District
process and the City Code states: "The City Council sitting as a Board of Equalization shall hear and
determine all such complaints and objections and may conform to the apportionment or make any
modifications which may seem equitable and just after consideration of all objections to the
apportionment."
This Ordinance places an assessment against property in the District and outlines the procedure for
collection. The assessment amount for each property owner is listed in the attached assessment roll
and includes the cost of construction, engineering, and administration of the district. Since the
District was privately funded, no financing costs are included; however, if a property owner elects
to pay off the assessment over time, interest will accrue on the principal amount during the period
used to pay off the assessment.
Property owners have the opti of p g the t p ci ount of the assessment without
interest if it is paid within thirt ays of blica n e Ord ance. If a property owner elects to
pay the assessment in installmen pri i divid o ten equal installments. The rate
of interest charged on the unpaid principal is 5.00%. Payments are due thirty days after the final
publication of the Ordinance adopting the assessments. This date is anticipated to be December 26,
2007.
BACKGROUND
Timberline Road, from Drake to Prospect was the highest deficiency segment in the City's street
network. The Timberline/Prospect intersection experienced failing levels of service in both the AM
and PM peak hours. Attempts by the City to create a funding mechanism for the necessary
improvements were not successful.
Section 3.7.3 of the City's Land U de t "A to is ilities(APF)Ordinance")does
not allow any additional dev pme t im ct it er ctions. A conceptual estimate
indicated that $2.5 million w neede o im v inte ction to meet minimum levels of
service necessary to allow addi al e o t the area. he improvements were:
• Dedicated right turn lanes on all legs of the intersection
• Double left turn lanes on Timberline
• Additional through lanes on Timberline
These interim improvements added capacity to the intersection, but did not include landscaped
medians, concrete paving, enhanced crosswalks,or other elements not necessary to increase Levels
of Service.
November 6, 2007 -3- Item No. 19
There are two large development parcels that were affected by the APF Ordinance. The James
Company and its assigns are constructing the Sidehill development project on the east side of
Timberline and north of Drake,and the St.Charles Investment Group owns 80 acres on the west side
of Timberline and north of Dr ak o d prevented from proceeding in
the absence of improvements Timb ne/Pr p t. a elopers elected to fund the $2.5
million APF improvements i order t proc r their evelopment projects. The James
Company and the St. Charles ent p sed th rmation of an involuntary SID as
a financing mechanism to allow for fair and equitable assessment of all benefitting property owners.
The proposed assessment method is based on the City's APF requirements as contained in Land Use
Code Section 3.7.3 and is consistent with the Code provisions setting out the process for creating
SIDS and imposing assessments. The Land Use Code states that a proposed development that
impacts a failing intersection cannot proceed until improvements are made. The Larimer County
Urban Area Street Standards (Revision No. 2) which are incorporated by reference into the Land
Use Code require that development of a property await APF improvements if:
• The property is within a one mile radius of the failing intersection; and
• New trips from the development will impact the intersection with greater than 2% delay.
Section 22-76 of the City Code authorizes the Council to provide for any manner of assessing the
costs of street improvements Ciui n 1 of the City Code regarding
improvement of street intersec es th Pove
se elated costs shall be apportioned
inthesamemannerasallothe the s ms, except for shares to be paid by
others, as applicable. In orderi hies nclude in the SID, staff contracted
with a Traffic Engineering consultant to analyze all development property within a one mile radius
of the intersection. Using the Zoning,City Structure Plan and the Institute of Traffic Engineers Trip
Generation Manual, the number of trips generated from each parcel and a distribution of trips into
the Timberline/Prospect intersection was estimated. Based on the applicable development standards
in the Larimer County Urban Area Street Standards(Revision No. 2), which have been adopted by
the Council, if the number of trips generated from a development parcel would have delayed the
functioning of the intersection by more than 2%,the parcel was considered to be a property that was
immediately benefrtted by the construction of the District Improvements and it was included in the
SID (because the improvements satisfied the APF requirements and made redevelopment of the
parcel possible). The amount of assessment for each parcel was then determined by projecting the
number of new trips into the Timberline/Prospect intersection that would be generated by each
parcel when it is developed.
The improvements for the Dis a ger project, Timberline Road,
from Drake to Prospect. A s ary f(IP1.27Y2,
City of Fort Collins Police Faci i
SID # 94 Improvements $2,518,853
Developer Local Street Contributions $1,634,729
Street Oversizing Program $3,273,425
Total Construction Cost: $8,699,298
November 6, 2007 -4- Item No. 19
The Special Improvement District# 94 construction costs are composed of:
Construction Costs: $2,400,000
Engineering Costs
Administration Cost 8
Total Construction and En erin sts: , 18'85
However, there are two properties which were developed in the County many years ago which may
redevelop. These properties' share of the improvement costs will be recovered through
reimbursement agreements at the time of redevelopment since they received no immediate benefit
in the form of relief from the APF requirements. Thus,their share of the construction costs has been
subtracted from the actual District cost.
Total Special Improvement District# 94 costs: $2,338,134
The City created the District in October 2005.
The terms of the District are:
1. The amount financed will be $2.5 million, or the amount needed to make the "APF"
improvements to the Ti e/P le
c2. No municipal orCi cked s wi d. cingwill be by the developers,
using cash or private aceme bondCity uld be the collection agency for
assessments, but would ur liabili
3. The assessment method is based on the APF ordinance and its benefit to undeveloped
property. Several factors, including trip generation, trip distribution, delay and proximity
to the intersection within a one-mile radius are used to calculate the impact and benefit for
each property.
4. The properties included in the SID will begin repayment of their proportionate share (the
assessments)upon completion of the construction and final accounting of the costs.
Providing a 10 year repayment schedule for properties being assessed is a benefit for properties
included in the SID. To meet the requirements of Article X,Section 20 of the Colorado Constitution
("TABOR"), a special election of SID property owners was held on the November 2005 ballot to
allow the City to enter into a multi-year obligation to repay the developers,using revenues generated
by the assessment payments, over a 10 year time period. The reimbursement agreement has been
executed by the City Manager and is contingent upon Council's approval of the Ordinance.
In accordance with the SID licies, Ci c tr ed i an MAI
appraiser prior to the
formation of the district and r ently u ted t raisal fo the proposed assessments m order
to confirm that the requirements Co vi s relat SID assessments have been met.
The Final Cost/Benefit Studyprepared by Bonnie Roerig&Associates,LLC,Study Date September
5, 2007, to evaluate relevant market data related to the Timberline Road Special Improvement
District is attached to this Agenda Item Summary. As summarized on page 4 of that Study, the
value of each of the parcels to be assessed has increased from the 2005 study value in an amount
equal to or greater than the proposed assessment for such parcel, as required by Section 22-90 of the
Code.
November 6, 2007 -5- Item No. 19
SUMMARY
The Timberline Road,Drake to Prospect Project was the most heavily congested intersection in the
City. In the absence of any Ci . 1 7, togAtils intersection, two impacted
developers elected to privately d th mpro t o proceed with their development
projects. These developers are emajoi prop wnersan ill receive the proceeds of Special
Improvement District#94 asses ,w 1 ad a po ofthe costs to other undeveloped
property in the area benefitted by the improvements.
ATTACHMENTS
1. Location Map
2. Trip Generation Analysis and Related Background
2. Final Cost/Benefit Study prepared by Bonnie Roerig & Associates, LLC, Study Date
September 5, 2007
I COPY
ORDINANCE NO. 136, 2007
OF THE COUNCIL OF THE CITY OF FORT COLLINS
ASSESSING THE COST OF IMPROVEMENTS IN THE
TIMBERLINE AND PROSPECT SPECIAL IMPROVEMENT DISTRICT NO. 94
IN THE CITY OF FORT COLLINS, COLORADO AND PROVIDING FOR THE
PAYMENT AND COLLECTION THEREOF
WHEREAS,the Council ofthe Cityof Fort Collins,Colorado(the"Council"),has heretofore
duly adopted Resolution 2003-122, Resolution 2005-083, Resolution 2005-091 and Ordinance No.
090, 2005, of the City (the "Creation Ordinance") relating to the creation of the Timberline and
Prospect Special Improvement District No. 94 of the City(the"District') for the purpose of making
the following improvements: additional turn lanes, additional travel lanes, raised medians, an
improved traffic signal,and new asphalt pavement in and around the intersection of Timber road and
Prospect Road (the"Improvements"); and
WHEREAS, the cost of the Improvements was advanced by the owners and developers of
certain properties located in close proximity to the Improvements(the"Funding Entities")pursuant
to an agreement between the City and the Funding Entities that City staff would recommend to the
Council that a portion of said costs be assessed against other neighboring properties that would
especially benefit from the Improvements and that, upon repayment of said assessments, such
amounts would be reimbursed to the Funding Entities by the City; and
WHEREAS, pursuant to Section 5 of the Creation Ordinance, the amount to be assessed
against property in the District is to exclude the portion of the cost of the Improvements that will be
due from the owners of certain underutilized properties within one mile of the intersection of
Timberline and Prospect Roads (the "Underutilized Properties"), which portion will be payable to
the Funding Entities through reimbursement agreements required by the City as a condition of the
redevelopment of said properties if and when said redevelopment occurs; and
WHEREAS,pursuant to the Creation Ordinance and the District Engineering Report on file
with the City Clerk of the City, the Improvements have been fully acquired, constructed and
installed; and
WHEREAS, on October 2, 2007, the Council adopted Resolution 2007-073 accepting the
Improvements, receiving and accepting the Statement of Cost of the District and the District
Assessment Roll prepared by the City Engineer and the Financial Officer of the City, respectively,
and ordering notice of the proposed assessments to be published as provided in Section 22-88 of the
Code of the City; and
WHEREAS, on October 2, 2007, the Council adopted Resolution 2007-093 rescinding
Resolution 2007-073, in order to correct certain errors in Resolution 2007-073; and
WHEREAS, pursuant to Resolution 2007-093, notice was duly published and the date of
November 6, 2007, was set for the hearing of complaints or objections to the proposed District
Assessment Roll; and
WHEREAS, on said date, the Council held a public hearing for the purpose of hearing and
determining any complaints or objections made in writing by any owner of property to be assessed
for the cost of the District, which complaint or objection was filed in the office of the City Clerk
within thirty(30) days from the publication of the notice of the proposed assessments; and
WHEREAS, the Council has considered the Final Cost/Benefit Study prepared by Bonnie
Roerig&Associates, LLC, Study Date September 5, 2007, to evaluate relevant market data related
to the District; and
WHEREAS, based upon said Final Cost/Benefit Study, the Council has confirmed that the
value of each of the parcels to be assessed has increased from the 2005 study value in an amount
equal to or greater than the proposed assessment for each such parcel; and
WHEREAS,all complaints or objections duly made and filed bysuch propertyowners to the
Council have been heard and considered by the Council.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1. That the total cost of the District, including final construction costs,
engineering and construction management costs,publication costs and any other incidental costs of'
the District is $2,338,134. Said amount excludes that portion of the cost of the Improvements to be
separately paid by the Underutilized Properties at the time of redevelopment and also excludes the
cost of collecting the assessments imposed by this Ordinance,which costs of collection will be added
by the County Treasurer or the Financial Officer at the time each annual assessment is due. Said
amount is hereby assessed upon all real property in the District in accordance with the resolutions
and ordinances pertaining to the District adopted by the Council and the provisions of Chapter 22
of the Code of the City, except those properties for which a proportionate share of the costs of the
District have been advanced by the Funding Entities. The portion of the total cost of the District to
be assessed upon each lot or tract of land in the District shall be as set forth on Exhibit "A" attached
hereto and incorporated herein by this reference.
Section 2. All assessments made herein shall be due and payable within thirty(30)days
after the final publication of this Ordinance without demand,provided that all such assessments may,
at the election of the owners of the property assessed,be paid in ten(10)equal principal installments,
the first installment being due on the 1st day of January, 2008,and on the 1st day of January of each
year thereafter until the full amount thereof has been paid, together with interest on the unpaid
principal at the rate of five percent (S%) per annum, said interest to be payable at the time of the
principal payments.
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Section 3. That total principal component of the first installment is expected to be
$140,961. The total interest component of the first installment is estimated to be$70,481,depending
upon the actual date of payment. The amount of each installment for individual parcels in the
District shall be the principal amount of assessment for each such parcel,as shown on Exhibit"A",
divided by ten(10) installments, plus a proportionate amount of accrued interest together with any
penalty interest and collection fee required by law.
Section 4. Interest will begin to accrue January 2, 2008, and will continue until the
assessments are paid in full.
Section 5. In the case of such election to pay in installments as set forth herein, the
failure to pay any installment, whether of principal or interest, when due shall cause the entire
remaining principal balance and accrued interest thereon to become due and collectible immediately
at the interest rate of one and one-half percent(1 1/2 %) per month or fraction of a month until the
day of the sale of the property as provided in Chapter 22 of the City Code. At any time prior to the
day of sale, the owner may pay the amount of all unpaid installments together with accrued interest
or fraction thereof, and shall be restored to the right to pay in installments in the same manner as if
default had not occurred.
Section 6. All assessments made herein, together with all interest thereon and penalties
for default in payment thereof, shall be a lien in the several amounts assessed against each property
from the date of the publication of the assessing ordinance and shall be a first and prior lien over all
other liens except general taxes in the same manner as general taxes now provided by law.
Section 7. All complaints or objections duly made in writing and filed with the City as
provided in Chapter 22 of the City Code have been heard and considered by the Council and the
Council hereby finds and determines, based upon evidence in the record,that the assessments made
herein are equitable and proper and the costs to be assessed against each parcel of real property in
the District does not exceed the amount of special benefit derived by such parcel from the
construction of the Improvements.
Section 8. All actions,legal or equitable,for relief against the assessments made herein,
whether based upon irregularities,jurisdictional defects or other grounds,shall be commenced within
thirty(30) days after the final passage of this Ordinance or else be thereafter perpetually barred.
Section 9. All action(not inconsistent with the provisions of this Ordinance) heretofore
taken by the City or its officers directed toward the acceptance of District Improvements, the
presentation and filing of the Statement of District Costs and the District Assessment Roll, and the
ordering of Notice to property owners to the assessed and to persons interested generally is hereby
ratified, approved and confirmed.
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Introduced and considered favorably on first reading and ordered published this 6th day of
November, A.D. 2007, and to be presented for final passage on the 20th day of November, A.D.
2007.
i
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading this 20th day of November, A.D. 2007.
Mayor
ATTEST:
City Clerk
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