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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 12/17/2013 - RESOLUTION 2013-110 UPDATING PRIOR ACTION REGARDINAgenda Item 25 Item # 25 Page 1 AGENDA ITEM SUMMARY December 17, 2013 City Council THIS ITEM HAS BEEN POSTPONED TO JANUARY 14, 2014 STAFF Mike Beckstead, Chief Financial Officer SUBJECT Resolution 2013-110 Updating Prior Action Regarding the Redevelopment of Foothills Mall and Regarding Cooperation and Partnership with Larimer County on Economic Revitalization Efforts and the Use of Tax Increment Financing. EXECUTIVE SUMMARY The purpose of this item is to approve a time extension for developing a financial model with Larimer County. In connection with the Foothills Mall redevelopment, the City committed to work with the County to develop such agreements as may be necessary to develop a model for evaluating fiscal impacts associated with the formation of tax increment financing districts. Work was to be completed by December 15, 2013. The work has not been completed because the County wants to involve multiple municipalities and when the September flood hit, the County put this work on hold. The County has confirmed its desire to complete this work in 2014. An extension of one year is requested. In light of the modification to the schedule for the Mall project, language regarding property tax increment to be shared with the County has been updated. STAFF RECOMMENDATION Staff recommends adoption of the Resolution. BACKGROUND / DISCUSSION Under Resolution 2013-045 the City committed to work with Larimer County to develop such agreements as may be necessary to develop a model for evaluating fiscal impacts associated with the formation of tax increment financing districts. Work was to be completed by December 15, 2013. For two reasons the work has not been completed; the County wants to involve multiple municipalities and when the floods hit, the County put this work on hold. The County has confirmed their desire to complete this work in 2014 and would like a one year extension. FINANCIAL / ECONOMIC IMPACT To be determined after the model is complete. - 1 - RESOLUTION 2013-110 OF THE COUNCIL OF THE CITY OF FORT COLLINS UPDATING PRIOR ACTION REGARDING THE REDEVELOPMENT OF FOOTHILLS MALL AND REGARDING COOPERATION AND PARTNERSHIP WITH LARIMER COUNTY ON ECONOMIC REVITALIZATION EFFORTS AND THE USE OF TAX INCREMENT FINANCING WHEREAS, at its regular meeting convened on May 7, 2013, the City Council adopted Resolution 2013-045, regarding the redevelopment of Foothills Mall and cooperation and partnership with Larimer County on economic revitalization efforts and the use of tax increment financing; and WHEREAS, Resolution 2013-045 provided for the City, through the Mayor and City Manager, to carry out certain actions generally related to working with the Fort Collins Urban Renewal Authority (the “Authority”), Larimer County, and other taxing entities in Larimer County to develop an appropriate fiscal impact analysis model for evaluating financial impacts associated with the formation of tax increment financing districts, the redevelopment of lands, and annexation of properties, including costs of service and revenue implications; and WHEREAS, Resolution 2013-045 called for certain intergovernmental agreements in support of the study and development of such a fiscal impact analysis model, and for work to be initiated no later than July 1, 2013, and completed no later than December 15, 2013; and WHEREAS, although discussions have been underway in furtherance of this work, competing priorities, including the emergency response and restoration efforts demanded by the Big Thompson River and Poudre River floods of September 2013, have impeded progress on these efforts; and WHEREAS, the City Council desires that cooperative efforts by the City, the Authority, Larimer County and, to the extent practicable, other municipalities and taxing entities in Larimer County, continue to move forward so as to develop improved methods for evaluating potential impacts as the basis for discussing and developing agreements under which the City and Larimer County may in the future work in partnership to plan, support and appropriately finance economic revitalization efforts, annexations and other undertakings; and WHEREAS, the City Council further desires that the terms of the City’s arrangements with Larimer County regarding the Foothills Mall Project be updated and confirmed, so as to be consistent with the current schedule and planning for that project; and WHEREAS, Article II, Section 16 of the City Charter empowers the City Council to, by ordinance or resolution, enter into contracts with other governmental bodies to furnish governmental services and make charges for such services or enter into cooperative or joint activities with other governmental bodies. - 2 - NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT COLLINS, COLORADO, AS FOLLOWS: Section 1. The terms of this Resolution supersede and replace the terms of Resolution 2013-045, except that the Recitals set forth therein are hereby incorporated into and made a part of this Resolution. Section 2. It is the intent of the City Council, in light of the significant residential portion of the Foothills Mall redevelopment, that the City will remit to the County an amount equal to fifty percent (50%) of the real property tax increment generated from the residential units that are within the Foothills Mall Project, in each year that those tax increment revenues are received for those new units and to the extent they are available after payment of debt service requirements for the Foothills Metropolitan District Bonds to be issued in connection with the Foothills Mall Project, subject to annual appropriation of funds for such payment. The City Council hereby authorizes the Mayor to execute an intergovernmental agreement in a form determined by the City Manager, in consultation with the City Attorney, to carry out the intended purposes of this Section, consistent with the terms of this Resolution. Section 3. The City Council hereby directs the City Manager to work with the Authority and the County to develop an agreement through which the City and the Authority will agree to remit to the County annually the amount of $60,000 from property tax increment received by the Authority from the Foothills Mall Tax Increment District, for each year the Authority receives such property tax increment for the fully redeveloped Foothills Mall. This amount is intended to represent the County’s share of the personal property tax increment paid from the Foothills Mall Tax Increment District. Said agreement may include such other implementation and administrative provisions as the City Manager determines to be necessary or appropriate. The City Council hereby authorizes the Mayor to execute said intergovernmental agreement in a form determined by the City Manager, in consultation with the City Attorney, to carry out the intended purposes of this Section, consistent with the terms of this Resolution. Section 4. The City Council hereby directs the City Manager to work cooperatively with the County and, to the extent practicable, with other municipalities and affected property tax levying entities in the County, to develop an appropriate fiscal impact analysis model for evaluating financial impacts associated with the formation of tax increment financing districts, the redevelopment of lands within the city, and the annexation of property into the city, including but not limited to an the analysis of cost of service and revenue implications for both the City and the County, and for other affected taxing entities. In addition: The City Manager is authorized to prepare such agreements as may be necessary to retain the services of a mutually acceptable outside expert to develop the described model for evaluating fiscal impacts, which may include sharing of costs for the work. It is the Council’s intent that work on this project will be undertaken no later than May 1, 2014, and will be completed no later than December 15, 2014. The City Council hereby authorizes the Mayor to execute an intergovernmental agreement documenting the arrangements for this work in a form determined by the City - 3 - Manager, in consultation with the City Attorney, to carry out the intended purposes of this Resolution. Section 5. Upon completion of the modeling and updated fiscal impact analysis of the Foothills Mall TIF on County infrastructure and services using the tools developed pursuant to Section 4, it is the City Council’s intent that the City Manager will conduct an updated review of the financial arrangements described above to offset impacts to Larimer County, and will propose for Council consideration such additional financial support to Larimer County, if any, as he determines to be appropriate. Section 6. The City Council hereby directs the City Manager to develop a plan for convening a discussion between City and County representatives of the relative financial benefits and costs and other impacts to the City and the County related to development, redevelopment and annexation of areas, and how those impacts should be distributed or shared, based upon the holistic analysis of those impacts resulting from the work described in Section 4, above. The City Manager shall present such plan to the City Council for further discussion and possible Council action. Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 17th day of December A.D. 2013. ____________________________________ Mayor ATTEST: _______________ City Clerk