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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 08/20/2013 - RESOLUTION 2013-070 APPROVING AN INTERGOVERNMENTALDATE: August 20, 2013 STAFF: Mike Beckstead AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 25 SUBJECT Resolution 2013-070 Approving an Intergovernmental Agreement Between the City of Fort Collins and the Fort Collins Downtown Development Authority Regarding the Implementation of DDA and City Financing of Certain Costs in Connection with the Woodward, Inc., Project at Lincoln and Lemay. EXECUTIVE SUMMARY The purpose of this item is to authorize the City Manager to sign the Intergovernmental Agreement (IGA) between the City and the DDA in connection with the Woodward Inc. Project. This IGA jointly establishes the following internal procedures between the City and DDA which are necessitated by the Agreement with Woodward, Inc. adopted April, 2013 by Ordinance No. 055, 2013: • process for drawing proceeds on the $6,050,000 bond being purchased by Woodward, Inc. to fund the Improvement Projects • communication and timing steps associated with calculation of the variable interest rate bond • protocol for how Woodward has selected to transfer bond proceeds to the DDA • process for payments by City project manager consultant of contractor invoices related to construction of Improvement Projects • process for debt payment and facade easement reimbursement to Woodward • acknowledgment and/or establishment of projected dates for City and DDA appropriation of bond proceeds for use in funding Improvement Projects and facade easement payments. STAFF RECOMMENDATION Staff recommends adoption of the Resolution. BACKGROUND / DISCUSSION In April 2013, the DDA and City of Fort Collins entered into the Agreement with Woodward, Inc. to redevelop the former Link-N-Greens golf course into the company’s new global headquarters. To ensure an efficient implementation of the City and DDA’s obligations for financing certain costs associated with the construction of the Platte River Power Authority transmission line relocation, right-of-way improvements on Lincoln and Lemay Avenues, and the restoration of the open space and natural area on land donated to the City by Woodward, the DDA and City Finance Department staffs coordinated internal finance and accounting procedures. The City and DDA staffs now wish to memorialize those procedures in an intergovernmental agreement. FINANCIAL / ECONOMIC IMPACTS Implementation of the IGA will establish the internal procedures for handling of all finances related to the Agreement with Woodward, Inc. BOARD / COMMISSION RECOMMENDATION At its August 8, 2013 meeting, The DDA Board voted unanimously to recommend adoption of the IGA by City Council. August 20, 2013 -2- ITEM 25 ATTACHMENTS 1. DDA Resolution 2013-11 Recommending to Council to Approve the Intergovernmental Agreement Regarding DDA and City Financing of Certain Costs in Connection with the Lincoln/Lemay Woodward Inc. Project ATTACHMENT 1 RESOLUTION 2013-070 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROVING AN INTERGOVERNMENTAL AGREEMENT BETWEEN THE CITY OF FORT COLLINS AND THE FORT COLLINS DOWNTOWN DEVELOPMENT AUTHORITY REGARDING THE IMPLEMENTATION OF DDA AND CITY FINANCING OF CERTAIN COSTS IN CONNECTION WITH THE WOODWARD, INC., PROJECT AT LINCOLN AND LEMAY WHEREAS, on April 16, 2013, the DDA, City and Woodward, Inc., a Delaware corporation (“Woodward” or the “Company”) entered into an agreement (the "Woodward Agreement") in connection with Woodward’s proposed relocation of its headquarters and the expansion of its manufacturing and office facilities to a 101.5 acre site located within the City and within DDA boundaries south of East Lincoln Avenue and north of Mulberry Street between Lemay Avenue and Riverside Avenue (the “Project”); and WHEREAS, pursuant to the Woodward Agreement, Woodward will fund the design, acquisition, construction and installation of the Improvement Projects (as defined in the Woodward Agreement) up to a maximum amount of Six Million Fifty Thousand Dollars ($6,050,000) (the “Improvement Projects Reimbursement Amount”); and WHEREAS, the Improvement Projects consist of the Transmission Line Relocation, the Right of Way Improvements and the Open Space Improvements, as all such terms are defined in the Woodward Agreement; and WHEREAS, the Woodward Agreement provides that Woodward will be reimbursed for such expenditures on the Improvement Projects with interest thereon from the proceeds of the Pledged Tax Increment Revenues (as defined in the Woodward Agreement) generated by the Project and the City will issue a bond to Woodward on behalf of the DDA in the principal amount of Six Million Fifty Thousand Dollars ($6,050.000), to secure the Improvements Projects Reimbursement Amount (the “Bond”); and WHEREAS, on April 18, 2013 the DDA and Woodward entered into an agreement providing for the reimbursement by the DDA to Woodward of eligible facade costs of certain buildings within the Project (“Eligible Facades”) up to a maximum funding amount of Three Million Eight Hundred Thousand Dollars ($3,800,000) (“Facade Reimbursement Amount”) in exchange for the granting by Woodward to the DDA of facade easements on such buildings (the “Facade Easement Agreement”); and WHEREAS, a line of credit was approved by ordinance of the City in 2012 funded solely from available DDA tax increment revenues for the purpose of financing DDA projects (the “Line of Credit”); and WHEREAS, the Facade Easement Agreement approves the use of the Line of Credit to make annual payments to Woodward to reimburse certain costs of Eligible Facades up to the Facade Reimbursement Amount; and WHEREAS, the DDA and the City desire to memorialize the procedures to be used in connection with the draw on the Bond and payments of the Improvement Projects Reimbursement Amount and the Facade Reimbursement Amount; and WHEREAS, the procedures have been described and documented in an intergovernmental agreement between the City and the DDA in the form attached hereto and incorporated herein as Exhibit “A” (the “IGA”); and WHEREAS, the DDA is empowered, pursuant to C.R.S. §31-25-808, to cooperate with the City, to enter into contracts with the City and to make or receive from the City grants, contributions and loans; and WHEREAS, the City is authorized to enter into intergovernmental agreements, such as a grant agreement, to provide any function, service or facility, under Article II, Section 16 of the City Charter and Section 29-1-203, C.R.S.; and WHEREAS, the Board of Directors of the DDA has determined that the IGA is in the best interests of the DDA and has, by Resolution 2013-11, authorized its execution by its Chairperson and recommended approval of the IGA by the City Council; and WHEREAS, the City Council has determined that the IGA is in the best interests of the City, in order to provide for appropriate and orderly implementation of the Woodward Agreement in cooperation with the DDA. NOW, THEREFORE, BE IT RESOLVED BY COUNCIL OF THE CITY OF FORT COLLINS that the Mayor is hereby authorized to execute the IGA on behalf of the City, in substantially the form contained in Exhibit “A,” subject to such modifications and additions as may be deemed necessary or appropriate by the City Manager, in consultation with the City Attorney, in order to protect the interests of the City or to further the purposes of the Agreement or this Resolution. Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 20th day of August, A.D. 2013. Mayor ATTEST: City Clerk EXHIBIT A