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COUNCIL - COMPLETE AGENDA - 04/15/2014 - COMPLETE AGENDA
City of Fort Collins Page 1 Karen Weitkunat, Mayor City Council Chambers Gerry Horak, District 6, Mayor Pro Tem City Hall West Bob Overbeck, District 1 300 LaPorte Avenue Lisa Poppaw, District 2 Fort Collins, Colorado Gino Campana, District 3 Wade Troxell, District 4 Cablecast on City Cable Channel 14 Ross Cunniff, District 5 on the Comcast cable system Steve Roy Darin Atteberry Wanda Nelson City Attorney City Manager City Clerk The City of Fort Collins will make reasonable accommodations for access to City services, programs, and activities and will make special communication arrangements for persons with disabilities. Please call 221-6515 (TDD 224- 6001) for assistance. Regular Meeting April 15, 2014 (Revised) Proclamations and Presentations 5:30 p.m. A. Proclamation Declaring April 18, 2014 as Arbor Day. B. Proclamation Declaring May 1, 2014 as the National Day of Prayer. C. Proclamation Declaring April as Local Music Appreciation Month. Regular Meeting 6:00 p.m. PLEDGE OF ALLEGIANCE CALL MEETING TO ORDER ROLL CALL City of Fort Collins Page 2 AGENDA REVIEW: CITY MANAGER City Manager Review of Agenda. Consent Calendar Review This Review provides an opportunity for Council and citizens to pull items from the Consent Calendar. Anyone may request an item on this calendar be “pulled” off the Consent Calendar and considered separately. o Council-pulled Consent Calendar items will be considered before Discussion Items. o Citizen-pulled Consent Calendar items will be considered after Discussion Items. CITIZEN PARTICIPATION Individuals who wish to make comments regarding items scheduled on the Consent Calendar or wish to address the Council on items not specifically scheduled on the agenda must first be recognized by the Mayor or Mayor Pro Tem. Before speaking, please sign in at the table in the back of the room. The timer will buzz once when there are 30 seconds left and the light will turn yellow. The timer will buzz again at the end of the speaker’s time. Each speaker is allowed 5 minutes. If there are more than 6 individuals who wish to speak, the Mayor may reduce the time allowed for each individual. ● State your name and address for the record ● Applause, outbursts or other demonstrations by the audience is not allowed ● Keep comments brief; if available, provide a written copy of statement to City Clerk CITIZEN PARTICIPATION FOLLOW-UP Consent Calendar The Consent Calendar is intended to allow the City Council to spend its time and energy on the important items on a lengthy agenda. Staff recommends approval of the Consent Calendar. Anyone may request an item on this calendar to be "pulled" off the Consent Calendar and considered separately. Agenda items pulled from the Consent Calendar will be considered separately under Pulled Consent Items. The Consent Calendar consists of: ● Ordinances on First Reading that are routine; ● Ordinances on Second Reading that are routine; ● Those of no perceived controversy; ● Routine administrative actions. 1. Consideration and Approval of the Minutes of the March 18, 2014 Regular Council Meeting. The purpose of this item is to approve the minutes from the March 18, 2014 Regular Council meeting. City of Fort Collins Page 3 2. Postponement of Items Relating to the Kechter Farm Annexation and Zoning to May 6, 2014. Staff requests that Second Reading of the Kechter Farm Annexation and Zoning Ordinances (Ordinance Nos. 005 and 006, 2014) be postponed until May 6, 2014. The final plat approval should be considered by the Board of County Commissioners in late April. Under the Intergovernmental Agreement (IGA) with Larimer County, the City has agreed to not annex lands within the Fossil Creek Reservoir Area Plan until after final plan approval by the County. Postponing this item until the May 6 meeting will honor the City’s commitment in the IGA. 3. Second Reading of Ordinance No. 049, 2014, Appropriating Unanticipated Grant Revenue in the Recreation Fund for the Adaptive Recreation Opportunities Program Paralympic Sport Club. This Ordinance, unanimously adopted on First Reading on April 1, 2014, appropriates unanticipated grant revenue in the recreation fund to be used for general operating support for the Adaptive Recreation Opportunities program Paralympic Sport Club. 4. Second Reading of Ordinance No. 050, 2014 Appropriating Prior Year Reserves in the General Fund for Waste Reduction and Diversion Projects to be Approved Through the Waste Innovation Program. This Ordinance, unanimously adopted on First Reading on April 1, 2014, shifts $18,794 accumulated during 2013 in the Waste Innovation Fund account into the City’s General Fund account for approved projects to develop new organizational processes to enable departments to divert more waste material from landfill disposal. 5. Second Reading of Ordinance No. 051, 2014, Reappropriating Funds Previously Appropriated in 2013 But Not Expended or Encumbered in 2013. This Ordinance, unanimously adopted on First Reading on April 1, 2014, authorizes appropriation of funds that were authorized in 2013 for various purposes, but were not spent or encumbered in 2013. 6. Second Reading Ordinance No. 053, 2014, Vacating a Portion of Plum Street Right-of-Way as Dedicated on the Dechairo Subdivision Plat. VOTE TO POSTPONE TO MAY 6, 2014 This Ordinance, unanimously adopted on First Reading on April 1, 2014, vacates a portion of Plum Street right-of-way that is no longer necessary or desirable to retain for public street purposes. The property owner adjacent to this portion of right-of-way is requesting the vacation. This location is the future site of the Scott Plaza development project, which was approved at the Planning and Zoning Board Public Hearing on January 9, 2014. 7. Second Reading of Ordinance No. 054, 2014, Appropriating Prior Year Reserves in the General Fund for Municipal Court Reorganization. This Ordinance, unanimously adopted on First Reading on April 1, 2014, authorizes funding of $55,400 for a minor reorganization of the Municipal Court department. 8. Items Relating to Municipal Court Fines and Penalties. A. Second Reading of Ordinance No. 055, 2014, Amending Section 19-4 of the City Code Regarding the Failure to Pay Fine or Penalty. B. Second Reading of Ordinance No. 056, 2014, Amending Section 19-62 of the City Code Pertaining to the Handling of Civil Infractions and Misdemeanor Offenses. City of Fort Collins Page 4 Ordinance No. 055, 2014, amends the City Code to remove the specific dollar amount of credit a prisoner receives for jail served on failure to pay cases and, instead, specifies that said amount will be listed in the Schedule of Fines established by the Municipal Judge. This allows the Municipal Judge to periodically adjust that amount as appropriate. Ordinance No. 056, 2014, amends the City Code to indicate that if an incident gives rise to charges which would normally be filed as a civil infraction and a misdemeanor, the charges are to be handled together as a misdemeanor case. This avoids the time and confusion of having two separate tickets filed with the Court, with separate procedures and costs relating to each. These Ordinances were unanimously adopted on First Reading on April 1, 2014. 9. Items Relating to Historic Preservation. A. Second Reading of Ordinance No. 057, 2014, Amending Chapter 14 of the City Code Regarding Landmark Preservation. B. Second Reading of Ordinance No. 058, 2014, Amending Section 2-278 of the City Code Pertaining to the Functions of the Landmark Preservation Commission. C. Second Reading of Ordinance No. 059, 2014, Amending Section 3.4.7 of the Land Use Code Pertaining to New Construction as it Affects Historic and Cultural Resources. These Ordinances, unanimously adopted on First Reading, on April 1, 2014, amend the City Code and the Land Use Code regarding the historic preservation program. At the April 1, 2014 Council meeting, questions were raised by Council concerning the effect of certain Code changes, principally those related to dangerous condition and imminent threat. For Second Reading, staff has revised the Code language to make the intent of these Code provisions clearer. Section 14-51 and a new Section 14-73 now state that, if the Building Official or another properly authorized public official or employee determines that a historic structure must be demolished because it presents an imminent threat to life, health or property, nothing in Chapter 14 will interfere with carrying out that order. However, if the official or employee determines that it is reasonable to repair the structure and that repairing it will make it safe, then the owner of the structure will need to comply with Chapter 14 before work is undertaken that will affect the exterior of the structure. 10. First Reading of Ordinance No. 060, 2014, Amending the Definition of "Publicly" Contained in Section 12-141 of the City Code Pertaining to the Cultivation of Marijuana. The purpose of this item is to amend the definition of "publicly" in Section 12-141 of the City Code as it relates to the cultivation of marijuana so as to conform the definition to that which appears in Section 17-190 relating to offenses involving marijuana. This will correct a mistake in the drafting of Ordinance Nos. 038 and 039, 2014, adopted by Council on Second Reading on March 18, 2014. 11. First Reading of Ordinance No. 061, 2014, Authorizing the Mayor to Execute a Deed Conveying 12,391 Square Feet of City-Owned Property to Dillon Companies, Inc. The purpose of this Ordinance is to obtain authorization from City Council to convey to Dillon Companies, Inc. a portion of a 1-acre tract of property that was originally acquired from BNSF Railway Company for MAX Bus Rapid Transit (“MAX”) project purposes, but is no longer needed by the Project or the City as a result of a an alternative design that has been developed. City of Fort Collins Page 5 12. First Reading of Ordinance No. 062, 2014, Vacating a Portion of Street Right-of-Way Dedicated to the City in 1974 as Part of the Kmart Development. The purpose of this item is to vacate a portion of dedicated street right-of-way that has not been constructed as a street and is no longer needed for public street purposes. The location of this street right of way is located at the rear of the building at 2505 South College Avenue and east of the railroad tracks. The property owners of 2505 S. College Avenue have requested this vacation. 13. Resolution No. 2014-030 Renaming Sand Creek Drive to Cross Creek Drive. The purpose of this item is to rename Sand Creek Drive to Cross Creek Drive, consistent with the City’s naming policies. Sand Creek Drive is a local street within the Mail Creek Crossing PUD, which is located southeast of the intersection of Kechter Road and South Timberline Road. 14. Resolution 2014-031 Making Appointments to Various Boards and Commissions. The purpose of this item is to make appointments to the Natural Resources Advisory Board, Water Board, and Youth Advisory Board. Vacancies were created through resignations. END CONSENT CONSENT CALENDAR FOLLOW-UP This is an opportunity for Councilmembers to comment on items adopted or approved on the Consent Calendar. STAFF REPORTS A. 3-STAR Community Certification B. RMI Report: 2013 Actuals/2014 Priorities COUNCILMEMBER REPORTS CONSIDERATION OF COUNCIL-PULLED CONSENT ITEMS City of Fort Collins Page 6 Discussion Items The method of debate for discussion items is as follows: ● Mayor introduces the item number, and subject; asks if formal presentation will be made by staff ● Staff presentation (optional) ● Mayor requests citizen comment on the item (five minute limit for each citizen) ● Council questions of staff on the item ● Council motion on the item ● Council discussion ● Final Council comments ● Council vote on the item Note: Time limits for individual agenda items may be revised, at the discretion of the Mayor, to ensure all citizens have an opportunity to speak. Please sign in at the table in the back of the room. The timer will buzz when there are 30 seconds left and the light will turn yellow. It will buzz again at the end of the speaker’s time. 15. Second Reading of Ordinance No. 052, 2014, Vacating Scott Avenue Right-of-Way as Dedicated at Book 1174, Page 543 of the Larimer County Records. (staff: Tyler Siegmund; 5 minute staff presentation; 20 minute discussion) VOTE TO POSTPONE TO MAY 6, 2014 This Ordinance, adopted on First Reading on April 1, 2014, by a vote of 4-3 (Nays: Cunniff, Overbeck, Poppaw) vacating Scott Avenue right-of-way that is no longer necessary or desirable to retain for public street purposes. This location will be the future site of the Scott Plaza development project, which was approved at the Planning and Zoning Board Public Hearing on January 9, 2014. 16. First Reading of Ordinance No. 063, 2014, Appropriating Prior Year Reserves in the General Fund to Fund Enhancements to the Fort Collins West Nile Virus Management Program for the 2014 Season. (staff: Dan Weinheimer, Kelly DiMartino, Mike Calhoon; 5 minute presentation; 20 minute discussion) The purpose of this item is to appropriate funds to execute the City's West Nile Virus Management Program. Additional funds are sought to enhance the public outreach program, to increase the City's larval control boundary and to allow for a more flexible larval control season. In total, funds requested add $75,100 to the program budget. 17. Resolution 2014-032 Amendment to the Foothills Mall Redevelopment Agreement. (staff: Darin Atteberry, Mike Beckstead; 10 minute staff presentation; 45 minute discussion) The purpose of this item is to amend the Foothills Mall Redevelopment Agreement. The Developer has asked to amend Section 3.1 – Conditions Precedent to Issuance of District Bonds of the Agreement, to allow the Metro District Bonds to be issued with 155k square feet of executed leases vs. the 240k square feet required in the current agreement. The Developer is also asking for clarification to Section 4.3 – Construction of Residential Component of Project: Affordable Housing, concerning the period of time the Developer may be required to make payments to the City if there is a delay in the completion of the residential units. CONSIDERATION OF CITIZEN-PULLED CONSENT ITEMS OTHER BUSINESS City of Fort Collins Page 7 ADJOURNMENT A. Council will consider a motion to adjourn to 6:00 p.m., Tuesday, April 22, 2014 Every Council meeting will end no later than 10:30 p.m., except that: (1) any item of business commenced before 10:30 p.m. may be concluded before the meeting is adjourned and (2) the City Council may, by majority vote, extend a meeting until no later than 12:00 a.m. for the purpose of considering additional items of business. Any matter which has been commenced and is still pending at the conclusion of the Council meeting, and all matters scheduled for consideration at the meeting which have not yet been considered by the Council, will be continued to the next regular Council meeting and will be placed first on the discussion agenda for such meeting. City of Fort Collins Page 1 urban renewal authority Karen Weitkunat, Chairperson City Council Chambers Gerry Horak, Vice-Chairperson City Hall West Bob Overbeck 300 LaPorte Avenue Lisa Poppaw Fort Collins, Colorado Gino Campana Wade Troxell Ross Cunniff Cablecast on City Cable Channel 14 on the Comcast cable system Steve Roy Darin Atteberry Wanda Nelson City Attorney Executive Director Secretary The City of Fort Collins will make reasonable accommodations for access to City services, programs, and activities and will make special communication arrangements for persons with disabilities. Please call 221-6515 (TDD 224- 6001) for assistance. URBAN RENEWAL AUTHORITY BOARD FORMAL MEETING April 15, 2014 (after the Regular Council Meeting) CALL MEETING TO ORDER ROLL CALL AGENDA REVIEW Executive Director’s Review of Agenda. CITIZEN PARTICIPATION Individuals who wish to make comments regarding items remaining on the Consent Calendar or wish to address the Board on items not specifically scheduled on the agenda must first be recognized by the Chairperson or Vice Chair. Before speaking, please sign in at the table in the back of the room. The timer will buzz once when there are 30 seconds left and the light will turn yellow. The timer will buzz again at the end of the speaker’s time. Each speaker is allowed 5 minutes. If there are more than 6 individuals who wish to speak, the Chairperson may reduce the time allowed for each individual. State your name and address for the record. Applause, outbursts or other demonstrations by the audience are not allowed Keep comments brief; if available, provide a written copy of statement to Secretary Address your comments to Council, not the audience City of Fort Collins Page 2 CITIZEN PARTICIPATION FOLLOW-UP STAFF REPORTS COMMISSIONER REPORTS Discussion Items The method of debate for discussion items is as follows: ● Chairperson introduces the item number and subject; asks if formal presentation will be made by staff ● Staff and/or Applicant presentation (optional) ● Chairperson requests citizen comment on the item (five-minute limit for each citizen) ● Board questions of staff on the item ● Board motion on the item ● Board discussion ● Final Board comments ● Board vote on the item Note: Time limits for individual agenda items may be revised, at the discretion of the Chairperson, to ensure all citizens have an opportunity to speak. Please sign in at the table in the back of the room. The timer will buzz when there are 30 seconds left and the light will turn yellow. It will buzz again at the end of the speaker’s time. 1. Consideration and Approval of the Minutes from the March 4, 2014 Urban Renewal Authority Board Meeting. The purpose of this item is to approve the minutes from the March 4, 2014 Urban Renewal Authority meeting. 2. Resolution No. 070 Of The Board Of Commissioners Of The Fort Collins Urban Renewal Authority Resolution 070 Approving An Amendment To The Redevelopment And Reimbursement Agreement With The City , Walton Foothills Holdings Vi, L.L.C., And The Foothills Metropolitan District Regarding The Redevelopment of Foothills Mall. (staff: Darin Atteberry, Mike Beckstead; 3 minute staff presentation; 15 minute discussion) The purpose of this item is to amend the Foothills Mall Redevelopment Agreement. The Developer has asked to amend Section 3.1 - Conditions Precedent to Issuance of District Bonds of the Agreement, to allow the Metro District Bonds to be issued with 155k square feet of executed leases vs. the 240k square feet required in the current agreement. The Developer is also asking for clarification to Section 4.3 - Construction of Residential Component of Project: Affordable Housing, concerning the period of time the Developer may be required to make payments to the City if there is a delay in the completion of the residential units. OTHER BUSINESS ADJOURNMENT City of Fort Collins Page 1 urban renewal authority Karen Weitkunat, Chairperson Council Information Center (CIC) Gerry Horak, Vice-Chairperson City Hall West Bob Overbeck 300 LaPorte Avenue Lisa Poppaw Fort Collins, Colorado Gino Campana Wade Troxell Ross Cunniff Cablecast on City Cable Channel 14 on the Comcast cable system Steve Roy Darin Atteberry Wanda Nelson City Attorney Executive Director Secretary The City of Fort Collins will make reasonable accommodations for access to City services, programs, and activities and will make special communication arrangements for persons with disabilities. Please call 221-6515 (TDD 224- 6001) for assistance. URBAN RENEWAL AUTHORITY BOARD WORK SESSION April 15, 2014 (after the Urban Renewal Authority Regular Meeting) CALL TO ORDER. 1. Urban Renewal Authority Financial Management Policy - Tax Increment Financing (TIF) Parameters. (staff: Tom Leeson; 10 minute staff presentation; 30 minute discussion) The purpose of this item is to discuss a series of new financial parameters to be used in developing the TIF commitments made to individual projects. The Fort Collins Urban Renewal Authority (URA) has been engaged in a process of continuous improvement since the beginning of 2012. Recent improvements include: Reorganization by moving the management of the URA from the Finance Department to Economic Health allowing for an independent review by Finance; Changes to the method for estimating Tax Increment generated by a project, consistent with the proven track record of the Downtown Development Authority’s approach; Increased consultation with outside legal counsel relative to specific URA financing, operations, and formation issues; and Documentation and tracking of the Redevelopment Agreement negotiation, adoption, and execution process. The item presented to the URA Board continues the process of improvement by presenting a series of parameters to be used in developing the TIF commitments made to individual projects by URA staff. City of Fort Collins Page 2 2. New Approach for URA Process. (staff; Tom Leeson; 10 minute staff presentation; 30 minute discussion) The purpose of this item is to discuss a new URA process when forming urban renewal plan areas that goes well beyond the State requirements. The URA should engage in a new process when forming urban renewal plan areas that goes well beyond the state requirements. The process for forming new urban renewal areas should be more strategic with regards to the public improvements, land uses, design standards, as well as public and private amenities, and include a detailed implementation strategy that identifies timing of improvements, cost estimates, responsible parties and realistic approach to various financing mechanisms. Furthermore, it is recommended this new urban renewal planning process be applied to a new and reconfigured Midtown Urban Renewal Plan. The Midtown Urban Renewal Plan should be amended to include only those areas that are currently within established tax increment districts (Prospect South and Foothills Districts). The URA should then engage in a community process to identify a new and more strategic area to be targeted for infill and redevelopment and develop a new urban renewal plan for that area. OTHER BUSINESS. ADJOURNMENT. PROCLAMATION WHEREAS, in 1872 more than a million trees were planted in Nebraska to celebrate the first Arbor Day, which is now observed throughout the nation and the world; and WHEREAS, trees in our city increase property values, enhance the economic vitality of business areas, and beautify our community as well as help conserve energy use by shading and cooling buildings and pavement; and WHEREAS, trees can reduce the erosion of our precious topsoil, cut heating and cooling costs, moderate the temperature, clean the air, produce oxygen, provide habitat for wildlife and can help offset the greenhouse effect by turning carbon dioxide, the primary cause of global warming, into life-giving oxygen; and WHEREAS, Fort Collins has been recognized as a Tree City USA by the National Arbor Day Foundation for 36 years; and WHEREAS, the city wishes to recognize McGraw Elementary, an IB World School, which has been selected as the Arbor Day School site for this year’s ceremony and tree planting to be held on April 18; and WHEREAS, the City also wishes to recognize the Platte River Power Authority for maintaining a strong commitment to the environment when planning new sources of electricity whether through wind power, hydroelectricity, or planting trees; and WHEREAS, the Platte River Power Authority focuses on the future through green-tinted glasses and has given the City $1,750 to purchase the trees that will be planted for Arbor Day. NOW, THEREFORE, I, Karen Weitkunat, Mayor of the City of Fort Collins, do hereby proclaim April 18, 2014 as ARBOR DAY in Fort Collins and urge all citizens to support efforts to protect our trees and woodlands and to support our city’s urban forestry program by planting trees for present and future generations. We thank the Platte River Power Authority for its generous donation and Fort Collins Wholesale Nursery for its donation and contribution to the celebration of Arbor Day. IN WITNESS WHEREOF, I have hereunto set my hand and the seal of the City of Fort Collins this 15th day of April, A.D. 2014. __________________________________ Mayor ATTEST: _________________________________ City Clerk Packet Pg. 8 PROCLAMATION WHEREAS, the authors of the Declaration of Independence recognized “That all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness;” and WHEREAS, the National Day of Prayer, established in 1954 and defined by President Ronald Reagan as the first Thursday in May, provides Americans with the chance to congregate in celebration of these endowed rights; and WHEREAS, each citizen has the freedom to gather, the freedom to worship, and the freedom to pray, whether in public or private; and WHEREAS, the 2014 theme is “One voice united in prayer” ; and WHEREAS, the history of this great nation is indelibly marked with the role that prayer has played in the lives of individual Americans; and WHEREAS, all citizens from the Fort Collins area are invited to participate; and WHEREAS, this year’s observance includes a Prayer Breakfast at the Fort Collins Hilton Hotel on Thursday May 1st, from 7a.m. to 8:30 a.m. NOW, THEREFORE, I, Karen Weitkunat, Mayor of the City of Fort Collins, do hereby proclaim Thursday, May 1, 2014, as the NATIONAL DAY OF PRAYER IN WITNESS WHEREOF, I have hereunto set my hand and the seal of the City of Fort Collins this 15th day of April, A.D. 2014. __________________________________ Mayor ATTEST: _________________________________ City Clerk Packet Pg. 9 PROCLAMATION WHEREAS, music is an important element in the creative fabric that envelops Fort Collins; and WHEREAS, local musicians work hard to provide entertainment for people from all walks of life, and helps to bring about a better quality of life in those who experience it; and WHEREAS, musicians help stimulate the local economy by bringing citizens out of their homes and into the community where they enjoy the arts in relaxed settings and spend money at local establishments; and WHEREAS, more and more musicians in Northern Colorado are gaining national recognition for the music that they have created here, and have inspired musicians from many other parts of the world to come to Fort Collins to experience what makes this city so special; and WHEREAS, local music brings our community together to celebrate creativity and diversity. NOW, THEREFORE, I, Karen Weitkunat, Mayor of the City of Fort Collins, do hereby declare my appreciation to the musicians and music lovers in this city and proclaim April 2014 as LOCAL MUSIC APPRECIATION MONTH And I urge all citizens to join me in recognizing the great contributions made by local musicians to help make Fort Collins and important cultural center. IN WITNESS WHEREOF, I have set my hand and the seal of the City of Fort Collins this 15 th day of April, A.D. 2014. __________________________________ Mayor ATTEST: ________________________________ City Clerk Packet Pg. 10 Agenda Item 1 Item # 1 Page 1 AGENDA ITEM SUMMARY April 15, 2014 City Council STAFF Wanda Nelson, City Clerk SUBJECT Consideration and Approval of the Minutes of the March 18, 2014 Regular Council Meeting. EXECUTIVE SUMMARY The purpose of this item is to approve the minutes from the March 18, 2014 Regular Council meeting. ATTACHMENTS 1. March 18, 2014 minutes (PDF) Packet Pg. 11 89 March 18, 2014 COUNCIL OF THE CITY OF FORT COLLINS, COLORADO Council-Manager Form of Government Regular Meeting - 6:00 p.m. A regular meeting of the Council of the City of Fort Collins was held on Tuesday, March 18, 2014, at 6:00 p.m. in the Council Chambers of the City of Fort Collins City Hall. Roll call was answered by the following Councilmembers: Campana, Cunniff, Horak, Overbeck, Poppaw, Troxell and Weitkunat. Staff Members Present: Atteberry, Nelson, Roy. Agenda Review City Manager Atteberry requested postponement of Item No. 2, Items Relating to the Kechter Farm Annexation and Zoning, to April 1, 2014. An amended Ordinance has been prepared for Item No. 16, Items Relating to Recreational Marijuana. The originally scheduled work session has been cancelled and items will be discussed at next week’s work session. Citizen Participation Julia MacMillan, Citizens Against Asphalt Toxins, opposed the proposed asphalt plant off Taft Hill Road, citing health concerns and the plant’s proximity to schools. Karen Hare, Citizens Against Asphalt Toxins, opposed the proposed asphalt plant off Taft Hill Road, citing health concerns and the plant’s proximity to schools. Dr. Kevin Pass, 1130 St. German Drive, opposed the proposed asphalt plant off Taft Hill Road, citing health concerns. Betty Aragon, 140 2 nd Street, expressed concern regarding the redevelopment of Lincoln Avenue and stated traffic issues on Lemay near the Alta Vista, Buckingham and Andersonville neighborhoods need to be resolved. Cheryl Distaso, Fort Collins Community Action Network, supported the proposed Lincoln Avenue design, but expressed concern regarding its cost. She expressed concern regarding the Lemay traffic and necessary improvements in the Alta Vista, Buckingham and Andersonville neighborhoods. Lea Hanson, 908 Cheyenne Drive, Women’s Commission, discussed International Women’s Day and Women’s History Month and reviewed the history of women in the community. Rob Kagen, Buttonwood Drive, expressed concern regarding the effect of neurotoxins, including fluoride, on developing fetuses. Packet Pg. 12 Attachment1.1: March 18, 2014 minutes (Minutes 3/18/14) March 18, 2014 90 Arvid Bloom, 1372 Iva Court, stated the community should be proud of its last fifty years and needs to look ahead and prepare for the next fifty years. He questioned the effect of the Affordable Care Act on the City’s budget. Mel Hilgenberg, 172 North College, announced community events and suggested uses for various properties around town. Lois Tink, 2960 West Stuart, expressed concern regarding the lack of affordable housing in the community. Kelly Giddens, Citizens for a Healthy Fort Collins, announced a health analysis bill being presented by Joanne Ginal and suggested the City support its adoption. Monte Barry, 415 Howes, opposed liquor service at a City event and stated drinking and bicycle riding should not be encouraged. Citizen Participation Follow-up Councilmember Cunniff noted the asphalt plant is a concern of Council and its role in the issue is being discussed. Councilmember Troxell commended Mr. Bloom’s comments and discussed the role of Council’s Futures Committee. He expressed appreciation for the topics discussed. Councilmember Overbeck thanked Ms. Aragon and Ms. Distaso for their comments and stated he had met with the Citizens Against Asphalt Toxins group. Councilmember Campana discussed affordable housing in the community. Mayor Pro Tem Horak requested input from the Legislative Committee regarding the bill being presented by Representative Ginal. Councilmember Cunniff replied the bill is consistent with several City objectives and is being supported by the Committee. Mayor Pro Tem Horak requested information regarding how the asphalt plant will be reviewed given the fact that its impacts will affect City residents. City Manager Atteberry replied staff is working on the issue and Council will be receiving additional information soon. Mayor Pro Tem Horak suggested hosting a neighborhood meeting for the Alta Vista, Buckingham and Andersonville areas. Councilmember Cunniff asked if Council would like to engage in lobbying efforts regarding Representative Ginal’s bill and thanked Ms. Hanson for her discussion of women’s issues. Mayor Weitkunat thanked Ms. Hanson for her discussion of women’s issues. Packet Pg. 13 Attachment1.1: March 18, 2014 minutes (Minutes 3/18/14) March 18, 2014 91 CONSENT CALENDAR 1. Consideration and Approval of the Minutes of the February 18, 2014 Regular Council Meeting and the February 25, 2014 Adjourned Council Meeting. The purpose of this item is to approve the minutes from the February 18, 2014 Regular Council meeting and the February 25, 2014 Adjourned Council meeting. 2. Items Relating to the Kechter Farm Annexation and Zoning. A. Second Reading of Ordinance No. 005, 2014, Annexing Property Known as the Kechter Farm Annexation to the City of Fort Collins. B. Second Reading of Ordinance No. 006, 2014, Amending the Zoning Map of the City of Fort Collins and Classifying for Zoning Purposes the Property Included in the Kechter Farm Annexation to the City of Fort Collins. These Ordinances, unanimously adopted on First Reading on January 7, 2014, annex and zone 88.21 acres located north of Fossil Creek Reservoir, approximately 1,320 feet south of Kechter Road, 2,640 feet east of South Timberline Road, just west of Ziegler Road, and southwest of Kinard Middle School. The property is located within the Fossil Creek Reservoir Area Plan. In accordance with the Intergovernmental Agreement with Larimer County, adopted in 1999, properties within the Fossil Creek Reservoir Area receive their land use approvals in the County and are annexed into the City prior to construction. 3. Second Reading of Ordinance No. 029, 2014, Appropriating Unanticipated Grant Revenue in the Recreation Fund for the Vida Sana Program. This Ordinance, unanimously adopted on First Reading on March 4, 2014, appropriates sub- grant funds from the Poudre Valley Health System Foundation and the Coalition for Activity and Nutrition to Defeat Obesity (CANDO) for the Vida Sana program to eliminate racial and ethnic disparities among Latino/Hispanic community members. Specific interventions include increasing access to facilities providing physical activity; providing social support to increase physical activity; and implementing a communitywide campaign for increasing physical activity that will be carried out by partner agencies. 4. Items Relating to FC Bikes Program. A. Second Reading of Ordinance No. 030, 2014, Appropriating Unanticipated Grant Revenue in the Transportation Services Fund for the 2014 Fort Collins Bikes Program. B. Second Reading of Ordinance No. 031, 2014, Appropriating Unanticipated Grant Revenue From Kaiser Permanente in the Transportation Services Fund for the 2014 Fort Collins Bikes Program. C. Resolution 2014-027 Authorizing the Mayor to Enter into an Intergovernmental Agreement with the State of Colorado Department of Transportation for the Purpose of Packet Pg. 14 Attachment1.1: March 18, 2014 minutes (Minutes 3/18/14) March 18, 2014 92 Obtaining a Congestion Mitigation and Air Quality Grant in Support of the FC Bikes Program. These Ordinances, unanimously adopted on First Reading on March 4, 2014, appropriate unbudgeted grant funds received for the FC Bikes Program: (1) a Congestion Mitigation & Air Quality (CMAQ) grant (2014-2016) in the amount of $704,128; and (2) a Kaiser Foundation Health Plan of Colorado (KP) grant (2014) in the amount of $94,100. Resolution 2014-027 authorizes the Mayor to execute a grant agreement between the City and CDOT for the purpose of obtaining a CMAQ grant in support of the FC Bikes Program. 5. Second Reading of Ordinance No. 032, 2014, Appropriating Unanticipated Grant Revenue in the Wastewater Fund and Authorizing the Transfer of Existing Appropriations from the Drake Water Reclamation Facility Improvements Capital Project for the Drake Water Reclamation Facility's Nutrient Grant Project for South Process Train Improvements. This Ordinance, unanimously adopted on First Reading on March 4, 2014, appropriates grant funding in the amount of $1,080,000 in the Wastewater Fund. The grant funds will be used for the planning, design, and construction of a portion of the Nutrient Removal Improvements required for the Drake Water Reclamation Facilities’ South Process Train. 6. Second Reading of Ordinance No. 033, 2014, Establishing Rental Rates and Delivery Charges for the City's Raw Water for the 2014 Irrigation Season. This Ordinance, unanimously adopted on First Reading on March 4, 2014, sets rates for the rental and delivery of the City's raw water supplies. The Water Utility uses these rates to assess charges for agricultural use, for various contractual raw water obligations and for raw water deliveries to other City departments. The proposed rate for each type of water is based on several factors including market conditions and assessments charged by irrigation companies. 7. Second Reading of Ordinance No. 034, 2014, Amending Sections 3.8.31 and 5.1.2 of the Land Use Code Pertaining to Hoop Houses. This Ordinance, unanimously adopted on First Reading on March 4, 2014, amends the Land Use Code to exempt hoop houses from the Building Code requirements and add hoop houses to the list of accessory structures allowed in the Code, and require urban agriculture licensees to locate hoop houses on their site plans. 8. Second Reading of Ordinance No. 035, 2014 Amending Chapter 9 of the City Code and Adopting by Reference the 2012 International Fire Code, with Amendments. This Ordinance, unanimously adopted on First Reading on March 4, 2014, adopts the 2012 International Fire Code, along with local amendments, to provide protection of public health and safety and general welfare regarding fire prevention and suppression. Packet Pg. 15 Attachment1.1: March 18, 2014 minutes (Minutes 3/18/14) March 18, 2014 93 Staff is recommending that this Ordinance be amended on Second Reading by removing from subsections D103.4.1, D103.4.2, and D103.4.3 of Appendix D to the 2012 International Fire Code as adopted and amended in the Ordinance, the reference to the method of measuring the distance of the access roads: “measured as the hose would lay.” Because the length of an access road is easily determined by direct measurement, there is no need to refer to a measurement related to the way a hose would lay. This term could be ambiguous, cause confusion, and provides no help in making the measurement. 9. Second Reading Ordinance No. 036, 2014 Authorizing the Conveyance of Parcels of Real Property on North College Avenue to the Colorado Department of Transportation. This Ordinance, unanimously adopted on First Reading on March 4, 2014, authorizes the conveyance of parcels acquired on North College Avenue for road improvements to the Colorado Department of Transportation. The City constructed the North College Avenue Improvements Project - Vine to Conifer in 2012. As required for all projects involving a Colorado Department of Transportation (CDOT) facility, and per the intergovernmental agreement between the City and CDOT, any acquired property for road right of way purposes is required to be subsequently conveyed to CDOT. 10. Second Reading of Ordinance No. 037, 2014 Amending the Zoning Map of the City of Fort Collins and Classifying for Zoning Purposes the Property Included in Phase Four of the Southwest Enclave Annexation to the City of Fort Collins, Colorado. Ordinance No. 037, 2014, unanimously adopted on First Reading on March 4, 2014, zones Phase Four of the Southwest Enclave Annexation, the last phase within this enclave and consisting of a p p r o x i m a t e l y 4 0 0 acres. The requested zone districts for Phase F o u r are Urban Estate (U-E), Rural Lands (R-U-L), and Public Open Lands (P-O-L). 11. First Reading of Ordinance No. 043, 2014, Appropriating Unanticipated Grant Revenue in the General Fund and Authorizing the Transfer of Appropriated Amounts Between Accounts and Projects for the Multi-Jurisdictional Northern Colorado Drug Task Force. Fort Collins Police Services applied to the Office of National Drug Control Policy and the Department of Justice on behalf of the Northern Colorado Drug Task Force (NCDTF) for federal grant monies to fund a portion of the investigation of illegal narcotics activities in Larimer County. These grant awards will be used to offset operating expenses for each participating agency. In addition, because of the significant decrease in federal funds available for drug enforcement, the NCDTF is transferring $236,160 from its forfeiture reserve account to its 2014 operating budget to cover unfunded expenses. The majority of the forfeiture reserve account is made up of assets seized from people engaged in illegal drug activities. 12. First Reading of Ordinance No. 045, 2014, Authorizing the Purchasing Agent to Enter into an Agreement for the Financing by Lease-Purchase of Vehicles and Equipment and Appropriating the Amount Needed for Such Purchases. The purpose of this item is to request the lease-purchase of vehicles and equipment for the cost of $2,941,469. Payments at the 2.4% interest rate will not exceed $313,029.11 in 2014. Packet Pg. 16 Attachment1.1: March 18, 2014 minutes (Minutes 3/18/14) March 18, 2014 94 Money for 2014 lease-purchase payments is included in the 2014 budget. The effect of the debt position on the City’s financial rating will be to raise the total City debt to 2.38%. A competitive process was used to select Pinnacle Public Finance for this lease. A 2014 Finance Department analysis of current and historical equipment lease financing arrangements showed that lease-purchase is in the best interest of the City given the normal spread between lease rate and reinvestment rate. Staff believes acceptance of this lease rate is in the City's best interest. 13. First Reading of Ordinance No. 046, 2014, Adding a New Section to the City Code Dealing with the Selection of Special Counsel for the City and Establishing a Procedure for Considering Whether to Consent to Potential or Actual Conflicts of Interest on the Part of Special Counsel. The purpose of this item is to establish a new process for selecting special legal counsel and for considering whether the City should waive conflicts of interest that such counsel may have in particular situations. 14. Items Relating to Federal and State Grants for the Fort Collins-Loveland Airport. A. Resolution 2014-022 Authorizing the City Manager to Execute the 2014 Grant Agreement (AIP Project No. 3-08-0023-33-2014) with the Federal Aviation Administration for Funding for Equipment and Improvements at the Fort Collins- Loveland Municipal Airport. B. Resolution 2014-023 Authorizing the City Manager to Execute a Grant Agreement (CDAG #14-FNL-01) with the Colorado Department of Transportation (Colorado Aeronautical Board) for the Funding of Equipment and Improvements at the Fort Collins- Loveland Municipal Airport. C. Resolution 2014-024 Authorizing the City Manager to Execute a Grant Agreement (CDAG #14-FNL-I01) with the Colorado Department of Transportation (Colorado Aeronautical Board) for Funding of an Intern Position Pertaining to the Fort Collins- Loveland Municipal Airport. The purpose of this item is to authorize the execution of grant agreements received by the Fort-Collins Loveland Airport. Resolution 2014-022 authorizes the City Manager to execute a grant agreement from the Federal Aviation Administration (FAA) for up to $1,000,000. This FAA Grant will be used to for capital projects including the acquisition of an Airport Rescue and Fire Fighting vehicle and the design and construction of a snow removal equipment building. Resolution 2014-023 authorizes the City Manager to execute a grant agreement from the State of Colorado, Division of Aeronautics for funds in the amount of $400,000. This State aviation discretionary grant will be used to match the FAA 2014 entitlement grant for the acquisition of an airport rescue and fire fighting vehicle and for the design and construction of a Snow Removal Equipment Storage building. Resolution 2014- 024 authorizes the City Manager to execute a grant agreement from the State of Colorado, Division of Aeronautics for funds in the amount of $33,280. This second State grant will fund fifty percent of the Airport’s intern program for 24 months. Packet Pg. 17 Attachment1.1: March 18, 2014 minutes (Minutes 3/18/14) March 18, 2014 95 ***END CONSENT*** Councilmember Cunniff made a motion, seconded by Councilmember Troxell, to adopt and approve all items not withdrawn from the Consent Calendar. Yeas: Cunniff, Horak, Weitkunat, Overbeck, Poppaw, Troxell and Campana. Nays: none. THE MOTION CARRIED. Consent Calendar Follow-up Councilmember Cunniff discussed Item No. 4, Items Relating to FC Bikes Program and Item No. 7, Second Reading of Ordinance No. 034, 2014, Amending Sections 3.8.31 and 5.1.2 of the Land Use Code Pertaining to Hoop Houses. Staff Reports City Manager Atteberry introduced Barb Zar, Government and External Affairs Officer, and Brad Decker, Strategic Planning Manager, from Platte River Power Authority (PRPA). Ms. Zar invited the community to PRPA’s March 27 th listening session. Mr. Decker discussed changes in energy development, distribution, and storage, and stated price competitiveness is critical for PRPA. Councilmember Troxell thanked the PRPA representatives for their presentation and noted PRPA’s four municipalities are potential providers for ancillary services. Mayor Weitkunat thanked the PRPA representatives for their presentation and encouraged attendance at the listening session. Councilmember Reports Mayor Weitkunat discussed the National League of Cities meeting in Washington D.C. She reported on a panel discussion regarding climate change and preparedness. Councilmember Troxell reported on the University Communities Council meeting. Councilmember Overbeck reported on a meeting at the Department of Justice regarding body- worn cameras and Community-Oriented Policing Services among other topics. Councilmember Campana reported on his attendance at the National League of Cities meetings and commended Dan Weinheimer for his work. Councilmember Overbeck reported on the Council Finance Committee meeting. Items Relating to the Kechter Farm Annexation and Zoning, Postponed to April 1, 2014 The following is the staff memorandum for this item. Packet Pg. 18 Attachment1.1: March 18, 2014 minutes (Minutes 3/18/14) March 18, 2014 96 “EXECUTIVE SUMMARY Second Reading of Ordinance No. 005, 2014, Annexing Property Known as the Kechter Farm Annexation to the City of Fort Collins. Second Reading of Ordinance No. 006, 2014, Amending the Zoning Map of the City of Fort Collins and Classifying for Zoning Purposes the Property Included in the Kechter Farm Annexation to the City of Fort Collins. These Ordinances, unanimously adopted on First Reading on January 7, 2014, annex and zone 88.21 acres located north of Fossil Creek Reservoir, approximately 1,320 feet south of Kechter Road, 2,640 feet east of South Timberline Road, just west of Ziegler Road, and southwest of Kinard Middle School. The property is located within the Fossil Creek Reservoir Area Plan. In accordance with the Intergovernmental Agreement with Larimer County, adopted in 1999, properties within the Fossil Creek Reservoir Area receive their land use approvals in the County and are annexed into the City prior to construction”. Mayor Pro Tem Horak made a motion, seconded by Councilmember Poppaw, to postpone Items Relating to the Kechter Farm Annexation and Zoning to April 1, 2014. Yeas: Horak, Weitkunat, Overbeck, Poppaw, Troxell, Campana and Cunniff. Nays: none. THE MOTION CARRIED. Ordinance No. 007, 2014, Authorizing the Lease of a Portion of City-Owned Property at 225 Maple Street to Feeding Our Community Ourselves, Inc. For Up to Five Years, Adopted on Second Reading The following is the staff memorandum for this item. “EXECUTIVE SUMMARY The purpose of this item is to lease 4,446 square feet of City-owned property (which includes 3,011 square feet of building area) to a non-profit cafe. Feeding Our Community Ourselves, Inc. ("FoCo") wishes to lease a portion of 225 Maple Street to house a non-profit cafe with a minimal food processing facility. The terms of the lease are outlined in the Background/Discussion section of this Agenda Item Summary. Ordinance No. 007, 2014 was adopted on First Reading on January 7, 2014 by a vote of 6-1 (Nays: Horak). The Second Reading presents to City Council three options regarding restrictions of the cafe's serving hours. BACKGROUND / DISCUSSION Feeding Our Community Ourselves, Inc. ("FoCo") is a non-profit corporation that plans to operate a cafe open to the general public and provide meals to people of all income levels, while using local, organic, and sustainably-grown ingredients. FoCo is a 100% volunteer operated organization. In addition, the site will minimally process local fresh produce to increase its Packet Pg. 19 Attachment1.1: March 18, 2014 minutes (Minutes 3/18/14) March 18, 2014 97 availability to low-income citizens. Second Reading of this Ordinance was postponed to March 18, 2014 to allow for public outreach. Staff decided that two meetings would be held and Neighborhood Services would facilitate both meetings. The first meeting was to allow FoCo to present its plans for the site to the neighborhood, followed by questions and answers. The second meeting was to share any possible changes being recommended to the proposed lease and address specific concerns identified at the first meeting. The main concerns from the meeting participants, as well as opinions received through letters, emails and phone calls, were: 1. Security/Enforcement 2. Parking Impacts 3. City's vision for Civic Center and how this business fits that vision 4. Potential changes to lease terms 5. Process for customers to work for meals 6. Hours of operation At the first meeting, FoCo's presentation included videos of other community cafes and stated that the cafe would be open for meal service to the general public Monday through Saturday, 11:00AM - 2:00PM. They further explained that there are no free lunches - customers would either pay or work for their meals. The limited hours of operation seemed less threatening to many of the neighbors. The neighborhood concerns over parking are difficult to resolve. Parking is scarce in the area. There are concerns with increased parking problems with FoCo customer parking and the new residential/limited commercial building being planned for the northeast corner of Maple and Mason. City Planning explained that a parking study is being performed and they will be reaching out to the community in the next few months. Prior to the first meeting, the plan was to work with FoCo and Parking Services to have four (4) on-street parking spaces signed as 2-hour parking at all times. Considering the neighbors’ concerns, staff worked with FoCo and has changed the parking request to be four (4) on-street parking spaces signed as 1-hour parking, 8:00AM - 5:00PM, Monday through Saturday. While concerns still remain over parking, there was a preference to this option. At the second meeting, there were fewer neighborhood participants than at the first meeting. Between the first and second meetings, correspondence from the neighborhood indicated that they were more comfortable with the limited hours of operation and the operation hours being during the lunch hour. City staff did inform the neighbors that we would be recommending that the lease would include limited hours, those being the same hours that FoCo had presented to the City and to the neighborhood. The draft Lease Agreement (Attachment 2) does not currently include a restriction on hours of operation. After the second meeting, it was decided to give City Council three options regarding the restriction of hours. These options are: Packet Pg. 20 Attachment1.1: March 18, 2014 minutes (Minutes 3/18/14) March 18, 2014 98 1. Restrict cafe serving hours to 11:00 AM to 2:00 PM, Monday through Saturday with up to five special dining events throughout the year. For the first year, the special dining events will be Mother's Day (10am - 1pm); Father's Day (10am - 1pm); two Bike to Work breakfasts (summer 6:30am - 9:30am and winter 7:00am - 9:30am). 2. Restrict cafe serving hours to 10:00 AM - 3:00 PM, Monday through Saturday with up to five special dining events throughout the year. For the first year, the special dining events will be Mother's Day (10am - 1pm); Father's Day (10am - 1pm); two Bike to Work breakfasts (summer 6:30am - 9:30am and winter 7:00am - 9:30am). 3. Do not restrict the cafe serving hours. In order to finalize the provisions of the Lease Agreement, it will be necessary for Council to specify which of the optional provisions relating to hours of operation should be included in the lease. Staff recommendation is Option 1. The reason for recommending Option 1 is that since our first meeting with FoCo, they have always presented to the City that the cafe would be open between the hours of 11:00AM - 2:00PM, Monday through Saturday. This is why all the agenda item summaries, including the 212 W. Laporte location, specified those hours. At the first neighborhood meeting when the neighborhood was the most concerned about security in the area, FoCo presented to the neighbors that the hours of operation would be 11:00AM to 2:00 PM, Monday through Saturday. This is the model for other community cafes. The very first question asked about FoCo at the first meeting was "Could the hours of operation be limited in the lease?" Our recommendation includes the option to return in one year to the neighborhood to discuss changing the restricted lease hours, which would be followed with Council action. LEASE TERMS (Lease is provided as Attachment 2) Tenant: FoCo will be the tenant. Lease Term: Term of the lease is five years. FoCo has the option to terminate the lease at any time with a 90-day advanced written notice. (Article II) Rent: Rent for the first year will be $16,900. At the end of the first year, and each year after, the base rent will be adjusted according to the Consumer Price Index (CPI-U). (Article III and IV) Use of the Lease Premises: FoCo may operate a cafe open to the general public, food processing (including food rescue), storage space, fundraising events and board meetings. (Article V) Restricted Operation Hours: Based on Council's recommendation, this section of the lease will describe the hours of general public food service. (Article V) Maintenance: FoCo is responsible for maintaining the Lease Premises including tenant- installed fixtures and equipment. The City is responsible for building systems and exterior maintenance. (Article VI) Packet Pg. 21 Attachment1.1: March 18, 2014 minutes (Minutes 3/18/14) March 18, 2014 99 Alterations and Improvements: All alterations, additions and improvements to the Leased Premises must be approved by the City as owner of the property. FoCo will be responsible for any remodeling and tenant finish costs. (Article VII) Taxes (Real and Personal): FoCo is responsible for payment of any real property and assessments that may be imposed upon the Lease Premises. (Article IX) Parking: The City will recommend to Parking Services that four (4) on-street parking spaces be signed as "One Hour Parking between 8AM - 5PM Monday through Saturday". (Article X) Utilities: FoCo shall pay for all utilities used on the Leased Premises. (Article XII) Building Signs: All signage must be approved by the City and must comply with all applicable laws. FoCo will be responsible for the cost, erection and maintenance of any signs. (Article XIII) Subletting and Assignment: FoCo may not assign this lease or any interest without the prior written consent of the City. (Article XIV) Contingency: This lease is contingent upon FoCo receiving all necessary approvals through the City's Development Review Process. (Article XXIX) Lease Expiration/Termination: FoCo may remove all their improvements and any movable trade fixtures, equipment and furniture. (Article XXX). FINANCIAL IMPACTS Annual rent collected from this lease will result in at least $16,900 In unanticipated revenue. Rent for this space is based on comparative market rents for industrial space and cold storage buildings. PUBLIC OUTREACH Two neighborhood outreach meetings were held on February 5, 2014 and February 19, 2014. Notifications were sent to property owners bounded by North College Avenue to North Whitcomb Street and West Mountain Avenue to Lee Martinez Park. Attachment 4 is the overall summary of these two meetings. Thirty-six members of the public attended the first neighborhood outreach meeting on February 5, 2014. This meeting was to present to the neighborhood the City's future plans for Block 32/42, the zoning and land use review process and for FoCo to present their cafe model. Residents had the opportunity to ask questions and provide their comments and concerns (Attachment 5). On February 19, 2014, twenty-eight members of the public attended the second neighborhood outreach meeting. At this meeting, FoCo gave a short presentation followed by City staff and FoCo addressing the concerns identified at the first meeting (Attachment 6).” Packet Pg. 22 Attachment1.1: March 18, 2014 minutes (Minutes 3/18/14) March 18, 2014 100 Helen Matson, Real Estate Services Manager, discussed the proposed plan for the building and the idea behind the FoCo Café. Beth Sowder, Neighborhood Services Manager, discussed the public outreach program which has occurred since First Reading. She detailed the two public meetings, which were related to the FoCo Café lease and the EcoThrift lease. Matson stated parking issues were a concern of neighbors and noted FoCo Café will have four one-hour parking spaces available from 8AM-5PM Monday through Saturday, all for the general public. She stated neighbors were also concerned about loitering; therefore, staff has proposed three options for dining hour restrictions. She stated staff is recommending Option 1, which would limit service hours to 11AM-2PM Monday through Saturday. Matson discussed the lease terms. Jeff Baumgartner, FoCo Café co-founder, discussed the benefits of the Café to the community and stated the neighborhood meetings were beneficial and encouraging. Claudia DeMarco, 913 Kimball Road, supported the FoCo Café and discussed its benefits to the community. Chris Hutchinson, 1320 Whedbee, supported a restriction-free lease for the Café and stated the business needs are completely aligned with neighborhood needs. Brian Majesky, 2817 Cherry Lane, FoCo Café architect, supported a restriction-free lease for the Café. Margo Carlock, 415 Mason Court, supported a restriction-free lease for the Café. Colleen Lyon, 2817 Cherry Lane, supported the Café and a restriction-free lease. Ryan Wilson, 719 West Willox, supported the movement and idea of the Café. Jack Daniels, 172 North College, thanked Council for its work and commended Fort Collins. Councilmember Troxell expressed appreciation for the Baumgartner’s bringing this concept to Fort Collins and asked why the neighborhood meetings combined the FoCo Café and EcoThrift lease issues. Sowder replied staff was of the opinion it would be more transparent for the neighbors to combine the topics. Laurie Kadrich, Director of Community Development and Neighborhood Services, replied this type of meeting is a direction Community Development and Neighborhood Services is taking overall and discussed the benefits of these types of joint meetings. Councilmember Troxell noted all of the speakers were in favor of the Café and commended the public outreach process. He questioned the inclusion of the service hour restrictions and other aspects of the business model in the lease agreement. Matson replied staff was attempting to balance the needs of the Café with the needs of the neighborhood, which was more comfortable with the service hour restriction. Additionally, the Café has always stated those hours as its service hours and stated the business model inclusions are part of all leases, in terms of Packet Pg. 23 Attachment1.1: March 18, 2014 minutes (Minutes 3/18/14) March 18, 2014 101 descriptions of what is occurring on the property. Staff would not oppose changing the language. City Manager Atteberry stated the restrictions in this lease agreement are not unusual but noted it is within Council’s purview to change the restriction. City Attorney Roy stated leases often include agreed-upon limitations on the use of the premises. Councilmember Troxell supported Option 3, the restriction-free lease, and suggested rewording the lease to simply state the use as being a restaurant rather than including the business model information. Councilmember Cunniff asked Mr. Baumgartner if the Café operations would change if the restrictions were not applied. Mr. Baumgartner replied the intent is to be open Monday through Saturday from 11AM-2PM; however, he noted any business needs to be flexible in order to survive and discussed some of the potential benefits of a more flexible option. He also stated the Café will not survive without neighborhood support. Councilmember Campana expressed concern regarding the process to this point and questioned whether this will set a precedent regarding a neighborhood outreach process for all City-owned property leases. He supported providing additional flexibility for the Café. Mayor Weitkunat stated a discussion regarding leases of City-owned properties needs to occur. Councilmember Campana made a motion, seconded by Councilmember Troxell, to adopt Option 3 of Ordinance No. 007, 2014, on Second Reading, with no changes to the business model language in the lease. City Attorney Roy suggested changing the language to specify a monthly rental rate rather than an annual rental rate. Councilmembers Campana and Poppaw accepted the change. Councilmember Troxell questioned the use of the no set fee structure language. City Attorney Roy replied more specific language could be used and asked if Council wanted to specify the way in which charges will be established. Councilmember Campana stated the language should be left in the lease as the controversial piece of this issue has been the no set fee structure. Councilmember Cunniff stated the no set fee structure is one of the unique aspects of the Café and supported the inclusion of the language in the lease. Councilmember Troxell asked about the completion of the minor amendment process being a condition of lease execution. Matson replied the building has been empty for many years and nothing can occur in the building without changes being made; therefore, this will allow the rent to be forgone until the Café is ready to use the building. Councilmember Troxell asked if the $1,000 minor amendment fee needs to be paid prior to signing the lease. Peter Barnes, Zoning Supervisor, replied the minor amendment fee will Packet Pg. 24 Attachment1.1: March 18, 2014 minutes (Minutes 3/18/14) March 18, 2014 102 actually be $600 and will need to be paid at the time of minor amendment application; it is not related to the lease execution. Councilmember Campana asked about the rent commencement date language. Matson replied those dates have been left blank in order to provide flexibility in terms of when the Café will begin paying rent. Additionally, it will be up to the Café to determine the best time to sign the lease and rent will not be paid until the start of construction. Councilmember Poppaw thanked those who commented and commended the Baumgartners for bring the Café to Fort Collins. She supported the unrestricted operating hours option. Councilmember Cunniff commended the ultimate outcome of the process. Councilmember Overbeck stated he would support the motion. The vote on the motion was as follows: Yeas: Weitkunat, Overbeck, Poppaw, Troxell, Campana, Cunniff and Horak. Nays: none. THE MOTION CARRIED. (Secretary’s note: The Council took a brief recess at this point in the meeting.) Items Relating to Recreational Marijuana, Adopted on Second Reading The following is the staff memorandum for this item. “EXECUTIVE SUMMARY A. Second Reading of Ordinance No. 038, 2014, Establishing Regulations for the Consumption and Possession of Marijuana Within the City of Fort Collins and Prohibiting the Transfer or Display of Marijuana on City-Owned Property. B. Second Reading of Ordinance No. 039, 2014, Establishing Regulations for the Cultivation of Marijuana. C. Second Reading of Ordinance No. 041, 2014, Adding a New Article XVII to Chapter 15 of the City Code to Govern the Licensing, Number, Location and Operation of Retail Marijuana Establishments. D. Second Reading of Ordinance No. 042, 2014, Making Amendments to the City of Fort Collins Land Use Code in Order to Accommodate Retail Marijuana Establishments in the City. Ordinance Nos. 038 and 039, 2014, unanimously adopted on First Reading on March 4, 2014, regulate the personal use and growing of marijuana as allowed under Amendment 64. Ordinance No. 039, 2014 has been amended to offer an option to allow marijuana cultivation in multi-family, single-family attached, and two-family dwellings. Packet Pg. 25 Attachment1.1: March 18, 2014 minutes (Minutes 3/18/14) March 18, 2014 103 Ordinance No. 041, 2014, adopted on First Reading on March 4, 2014, by a vote of 4-3 (Nays: Campana, Troxell, Weitkunat) enacts regulations regarding retail marijuana establishments. Ordinance No. 042, 2014, adopted on First Reading on March 4, 2014, by a vote of 6-1 (Nays: Troxell) makes amendments to the Land Use Code to define and regulate retail marijuana establishments. BACKGROUND / DISCUSSION Amendment 64: In November 2012, voters approved Amendment 64 which allows the following: Adults 21 years-of-age or older may legally possess, use, display, purchase, or transport one ounce or less of marijuana without a doctor’s recommendation. Adults 21 years-of-age or older may possess, grow, or transport up to 6 marijuana plants, provided, however, that the cultivation of marijuana occur in a locked and enclosed space. Local governments may opt out of allowing retail marijuana establishments or they may opt in and enact local regulations. Police Services Data: From January 2009 through January 2014, Police Services has investigated 62 criminal incidents involving marijuana. This data did not include unlawful possession cases or paraphernalia related cases. Of the 62 incidents, eleven of these occurred at medical dispensaries or cultivation facilities, including 10 burglaries and one armed robbery. Police Services has also seen one explosion at an apartment complex involving the distillation of marijuana to make hash oil. In a separate case, a death occurred from a fire in a motel room, caused by the same activity. A full table of police statistics provided in Attachment 3. First Reading: At the March 4, 2014 City Council meeting, Council adopted on First Reading the following four ordinances related to Amendment 64. Ordinances No. 038, 2014 addresses personal consumption and possession and prohibits the display and transfer of marijuana. The ordinance includes the following: Defines and prohibits the public use of both recreational and medical marijuana. Prohibits adults 21 years-of-age and older from possessing more than one ounce of recreational marijuana. Prohibits medical marijuana patients from possessing more than two ounces of medical marijuana. Prohibits the display or transfer of marijuana on any City owned property including parks, trails, natural areas, streets, and sidewalks. Ordinance No. 039, 2014 addresses the residential growing of marijuana for personal use. Packet Pg. 26 Attachment1.1: March 18, 2014 minutes (Minutes 3/18/14) March 18, 2014 104 Highlights of the ordinance include: No cultivation in two-family, multifamily, or single-family attached dwellings. Cultivation could not occur in the open or be perceptible from the outside of a property. The use of compressed, flammable gases would be prohibited, as would all high-intensity lighting. The 12 plant limit for medical marijuana would remain in place, and would apply to recreational marijuana regardless of the number of inhabitants. During the discussion Councilmembers Cunniff and Overbeck requested an option to regulate growing in multi-family housing rather than banning such cultivation. Staff has discussed what would be necessary to mitigate the potential dangers and hazards related to growing marijuana in multifamily and staff continues to have concerns about the adverse impacts in this situation. The following regulations have been added as an option in Ordinance No. 039, 2014 in an attempt to address allowing growing in multifamily: The dwelling unit shall have a fire-suppression system (fire-sprinklers) installed at the time of original construction. Marijuana cultivation can only occur in an enclosed, locked space not exceeding 100 square feet. The use of a humidifier for marijuana cultivation is prohibited unless it was installed as part of the approved mechanical system for the dwelling unit. Extension cords and power strips for marijuana cultivation is prohibited. The use and storage of commercial grade fertilizer for marijuana cultivation is prohibited. Marijuana cultivation cannot be perceptible beyond any commonly shared wall. If Council wishes to regulate marijuana cultivation in multi-family dwellings, rather than banning it, staff recommends continuing the Ordinance on Second Reading in order to allow time to more fully review the options and determine if there are different or additional regulations (Attachment 4). Building Services is responsible for all housing related complaints and would most likely field any complaints related to marijuana cultivation in a multifamily dwelling unit. Building staff is at maximum output with current staffing levels and increased construction related workloads. The addition of this responsibility will be challenging and would result in a budget offer seeking additional staff. Ordinance No. 041, 2014 allows and regulates retail marijuana establishments. The ordinance as adopted on First Reading includes the following: Allows existing licensed medical marijuana centers in good standing to apply for a retail marijuana license. Requires any medical center obtaining a retail license to maintain their medical license at the same location as the retail establishment. Retail marijuana stores must prohibit anyone under 21 from entering either the retail or the medical premises. Allows marijuana product manufacturing facilities and the sale of edible marijuana Packet Pg. 27 Attachment1.1: March 18, 2014 minutes (Minutes 3/18/14) March 18, 2014 105 products. Does not require marijuana establishments (cultivation and product manufacturing) to operate a retail marijuana store in the City. Beginning October 1, 2014, cultivation facilities will be allowed to sell wholesale. The City Manager and staff do not recommend allowing retail marijuana establishments, as outlined in a February 11 memo from the City Manager (Attachment 2). Ordinance No. 042, 2014 makes necessary amendments to the Land Use Code to address retail marijuana establishments. FINANCIAL/ ECONOMIC IMPACTS In November 2013 Colorado voters approved additional taxes on retail marijuana. The approved measure includes a 10% sales tax, 15% of which will be shared with local governments that allow retail establishments with the remainder funding the Marijuana Enforcement Division and repaying the General Fund. A 15% excise tax was also approved. The first $40 million of the annual excise tax revenue is earmarked for capital school construction. Based on current revenue from medicinal marijuana, estimates of what the City may receive from the state and some additional research, staff is comfortable with a forecast amount of $700k-$900k in retail marijuana revenue annually. The City will receive one-half of the $500 application fee paid to the state for each retail marijuana application they receive from a medical marijuana establishment within Fort Collins. In addition, the City may impose an operating fee to offset costs, including but not limited to, inspection, administration, and enforcement of retail marijuana establishments. Staff has not yet determined what the annual operating fee will be for retail marijuana establishments. However, it is unlikely that the City can reasonably set the fee at an amount adequate to cover estimated costs. Estimated costs for retail marijuana licensing include licensing staff, Building and Zoning Services, Police Services and the Marijuana Licensing Authority. These estimated costs break out as follows: Police: Anticipate the need for one full time officer ($146,000/first year cost) and one investigative aide ($72,000.) Building Services: Staff resourcing needs will vary, based on outcome of allowing cultivation in multifamily. If allowed, Building Services will be needed to follow-up on complaints, conduct investigations, and ensure corrections which would require a full time inspector ($75,000 annually). Clerk’s Office: Ongoing .5 Licensing Agent FTE ($35,985) to handle retail and medical marijuana licensing activities post licensing (manager registrations, transfers of ownership, modification of Packet Pg. 28 Attachment1.1: March 18, 2014 minutes (Minutes 3/18/14) March 18, 2014 106 premises, changes of location, trade name changes, renewals, and disciplinary actions). Licensing Authority: Estimating $25,000 annually for these services.” Ginny Sawyer, Policy and Project Manager, reviewed changes made to the Ordinances since First Reading. Steve Ackerman, Fort Collins resident, argued public safety needs are best served by allowing a limited number of licensed retailers to operate within the regulated envelope provided by the State. Desmond Coronado, Fort Collins resident, opposed a ban on Cannabis clubs, stating their existence would allow a safe location for tourists to smoke marijuana. John Guismueller, discussed the positive financial impacts to local businesses of allowing recreational marijuana sales. Bill Fairbank, 1712 Clearview Court, expressed concern regarding increased marijuana use in schools, opposed edible sales, and expressed concern about advertising in print and at events. Seth Stepleton, 613-A Maple Street, discussed marijuana testing facilities and recommended regulations be included for those facilities. Ashley Kasprzak, Team Fort Collins Executive Director, discussed youth substance abuse concerns and encouraged the placement of a sales or excise tax for prevention, enforcement and treatment on the November ballot. Siu Au Lee, 939 Pioneer Avenue, stated alcohol business regulations have not prevented underage alcohol use and abuse. She supported a ban on the sale of retail marijuana. Nathan Scott, 4206 Fall River Drive, stated the past two years of medical marijuana sales have proven the commitment of businesses to keep marijuana out of the hands of youth. He discussed the benefits of marijuana edibles. Ray Burgner, Fort Collins resident, opposed allowing retail marijuana sales. Mayor Pro Tem Horak made a motion, seconded by Councilmember Cunniff, to adopt Ordinance No. 038, 2014, on Second Reading. Yeas: Overbeck, Poppaw, Troxell, Campana, Cunniff, Horak and Weitkunat. Nays: none. THE MOTION CARRIED. Councilmember Cunniff made a motion, seconded by Councilmember Poppaw, to adopt Option A of Ordinance No. 039, 2014, on Second Reading. Councilmember Cunniff discussed concerns related to marijuana growing in multi-family structures. He stated large home grow operations would be the main source of marijuana for Packet Pg. 29 Attachment1.1: March 18, 2014 minutes (Minutes 3/18/14) March 18, 2014 107 youth and stated fewer people will opt to grow their own marijuana if regulated retail operations are available. The vote on the motion was as follows: Yeas: Poppaw, Troxell, Campana, Cunniff, Horak, Weitkunat and Overbeck. Nays: none. THE MOTION CARRIED. City Attorney Roy read the changes to Ordinance No. 041, 2014. Mayor Pro Tem Horak made a motion, seconded by Councilmember Overbeck, to adopt Ordinance No. 041, 2014, on Second Reading, including the most recent changes. Mayor Pro Tem Horak made a motion to amend, seconded by Councilmember Overbeck, to revise Section 15-608 by selecting Option A, which includes a new Section C as read by Mayor Pro Tem Horak. This new Section would require that retail marijuana cultivation facilities be connected to a retail marijuana facility and would specifically limit the sale or distribution of the product to retail stores or product manufacturing facilities, for which the same licensee holds the license. Councilmember Overbeck thanked Mayor Pro Tem Horak for the motion and discussed the benefits of the amendment. Councilmember Cunniff asked about the impact of this amendment on manufacturing facilities. City Attorney Roy replied this is a limitation on cultivation facilities and the way in which they can distribute the product they grow, thereby limiting the amount that is grown. Councilmember Cunniff asked about the requirement for excess marijuana produced by a retail establishment. City Attorney Roy replied distribution of excess product would be prohibited; although the destruction of excess product is not necessarily required. Councilmember Cunniff stated he is leaning toward support of Option B, which would allow retail establishments to sell the same amount of the excess product that is sold at the storefront. Police Captain Don Vagge stated state regulations currently outline how marijuana that is not going to be sold is to be destroyed and made unrecognizable. Councilmember Campana suggested manufacturing facilities may need to be addressed as well. Councilmember Troxell stated this discussion justifies the need for a two year ban and stated he will abstain on this vote. City Attorney Roy noted according to the City Charter, a vote to abstain is a vote in the affirmative. Councilmember Poppaw requested clarification as to wholesale sales. City Attorney Roy replied product cultivation would be limited to distribution in a licensee’s own retail establishment and/or product manufacturing facility. Packet Pg. 30 Attachment1.1: March 18, 2014 minutes (Minutes 3/18/14) March 18, 2014 108 The vote on the motion to amend was as follows: Yeas: Campana, Horak, and Weitkunat. Nays: Cunniff, Poppaw, and Overbeck. Abstain: Troxell. THE MOTION CARRIED. Councilmember Campana stated he is not in favor of retail marijuana operations, but noted this is an historic vote and he would like to see the strictest regulations possible. Councilmember Overbeck stated he was in favor of Option B in order to give businesses more flexibility. Councilmember Cunniff asked if a report would be required in a year. City Attorney Roy replied that provision could be included at Council’s discretion. Councilmember Cunniff stated his concern is being overly restrictive on businesses and suggested the issue could perhaps be revisited in a few months, depending on business success with the given regulations. Councilmember Troxell discussed his concerns with retail marijuana sales and stated he is supportive of a two year ban on retail sales. Mayor Weitkunat stated the support for successful business models should translate to all businesses within the community; however, she stated she will not support this motion. The vote on the amended motion was as follows: Yeas: Cunniff, Horak, Overbeck and Poppaw. Nays: Campana, Weitkunat and Troxell. THE MOTION CARRIED. Mayor Pro Tem Horak made a motion, seconded by Councilmember Cunniff, to adopt Ordinance No. 042, 2014, on Second Reading. Barnes noted this Ordinance contains provisions relating to retail marijuana stores, retail marijuana cultivation facilities, retail marijuana product manufacturing facilities, and retail marijuana testing facilities. City Attorney Roy noted this Ordinance amends the Land Use Code to establish appropriate zone districts where these kinds of businesses can be located, which are the same as those for the medical marijuana businesses. Councilmember Cunniff stated he will accept this compromise but would have preferred the regulations to be more accepting of what the citizens have requested. The vote on the motion was as follows: Yeas: Cunniff, Horak, Overbeck, Campana and Poppaw. Nays: Weitkunat and Troxell. THE MOTION CARRIED. Packet Pg. 31 Attachment1.1: March 18, 2014 minutes (Minutes 3/18/14) March 18, 2014 109 (Secretary’s note: See Other Business for additional discussion of Items Relating to Retail Marijuana.) Ordinance No. 044, 2014, Appropriating Prior Year Reserves in the Keep Fort Collins Great Fund to Fund Sunday Service for the MAX Bus Rapid Transit System, Postponed Indefinitely The following is the staff memorandum for this item. “EXECUTIVE SUMMARY The purpose of this item is to appropriate funds to provide MAX Bus Rapid Transit service on Sundays. These funds would provide Sunday service for MAX only, from May 11, 2014 through December 28, 2014. The Sunday service would be provided between the hours of 8:00 am to 8:00 pm, with 15 minute frequencies. The service hours and frequency are designed to capture the following markets: church, mid-day shopping, and summer festivals. The expense in 2014 to provide MAX Sunday service is $272,500. BACKGROUND / DISCUSSION There has been much community interest and input to add Sunday Transfort bus service. As a result, staff was asked to submit a proposal to provide MAX Sunday service beginning May 11, 2014. Transfort submitted similar budget offer requests in the 2013 - 2014 Budgeting for Outcomes process to provide MAX Sunday service (offer #119.6) and Sunday Transfort local service (offer #119.7), but they were not funded. The biggest challenge facing Transfort in meeting this request is staffing availability. Transfort received notice in November 2013 that budget revisions were approved to increase headways and hours of service for east-west fixed route service to complement the new MAX service beginning May 2014. In addition, Transfort recently received notice that Colorado State University (CSU) accepted an offer to significantly increase transit services associated with the CSU campuses. These two separate enhancements add 26,000 hours of additional service to the 2014 schedule. To meet this increased service demand, Transfort has increased bus operator staffing over the last couple months, but will still incur overtime expenses through the summer. Transfort has ongoing bus operator training classes planned for June - December 2014 to increase staffing levels up to an optimum level of efficiency. As a result of these staffing resource and training challenges, the maximum additional service that Transfort could accommodate in May 2014 would be the addition of Sunday service for MAX only. This is not an optimal scenario as the Transfort east-west fixed route service does not currently operate on Sundays which would limit access to MAX only via bike, walk or car. To meet this additional Sunday service, Transfort will require an additional Dispatcher, Field/Training Coordinator, and Transit Service Officer. Dial-A-Ride service would also need to be provided within ¾ of mile of the MAX service during hours of operation per Americans with Disabilities Act requirements. Packet Pg. 32 Attachment1.1: March 18, 2014 minutes (Minutes 3/18/14) March 18, 2014 110 Transfort will need direction no later than April 1, 2014, as to whether Sunday MAX service will be provided in May 2014. There are a number of time sensitive activities that need to occur prior to Transfort being able to provide Sunday service (additional staffing, schedule development, printing of schedules, public outreach, etc.). FINANCIAL / ECONOMIC IMPACTS The provision of MAX service on Sunday from May 11 through December 28, 2014 will require funding of $272,500. The requested 2014 appropriation provides funding for labor, fuel and maintenance to provide MAX service and the required complementary Dial-A-Ride service within ¾ of mile of MAX. A full year of MAX service on Sundays in 2015 will require funding of $344,200. Staff recommends that the 2014 appropriation to fund MAX service on Sunday be provided from Keep Fort Collins Great - Other Transportation reserves. Public transportation improvements, whether they are capital or operating, can have significant positive impacts on the local economy. Transit provides community access for work, school, medical, shopping, social and recreational trips. As in many communities, a large percentage of business activity occurs on Saturday and Sunday. The ability to increase the convenience of travel and access on Sunday to local businesses along the Mason Corridor will provide a positive economic climate within the community. The American Public Transportation Association provides the following economic impact data: Every dollar communities invest in public transportation generates approximately four dollars in economic returns. Every $1 billion invested in public transportation supports and creates 36,000 jobs. Every $10 million in capital investment in public transportation yields $30 million in increased business sales. Every $10 million in operating investment yields $32 million in increased business sales. ENVIRONMENTAL IMPACTS The MAX Bus Rapid Transit fosters more than economic development and improved transportation options; it embodies the City of Fort Collins' commitment to sustainability. Sustainability, by definition, means taking a broad look at how decisions and actions affect environment, economy, and social health. Through MAX, the City is able to positively impact all three of these components and further Fort Collins as a leader in sustainable development. The addition of MAX Sunday service will provide more options to safely and conveniently travel to key areas in the city, providing access to church, work centers, shopping areas, and recreation facilities, without the need of a car. As people utilize alternative modes of travel, congestion and pollution levels in our City will decrease, which means less CO2 (one of the key measures used in evaluating the environmental health) will be emitted in the community. BOARD / COMMISSION RECOMMENDATION Packet Pg. 33 Attachment1.1: March 18, 2014 minutes (Minutes 3/18/14) March 18, 2014 111 This appropriation request has not been presented to the Transportation Board. However, the budget offers 119.6 and 119.7 in the 2013 -2014 budget for Sunday service were supported by the Transportation Board (see Attachment 1 for Transportation Board minutes). PUBLIC OUTREACH Transfort staff has conducted public outreach since May 2013 regarding the planned service changes beginning May 2014 (see Attachment 3 for list of outreach). Transfort frequently receives feedback from customers and potential customers asking that Sunday service be provided. Sunday service, in addition to increasing bus frequencies, late evening service and increased coverage are the requests heard most frequently. Attachment 2 provides the results of a recent survey regarding which additional services are most important. Sunday service ranks third behind increasing frequencies and extended evening hours of service. City Council approved a budget revision in November 2013 to increase Transfort service frequencies on select routes and extend evening service to compliment MAX. Kurt Ravenschlag, Transfort General Manager, stated this item would appropriate funds for Sunday MAX service, as well as the required complimentary Dial-a-Ride service, from May 11, 2014 to December 28, 2014. He noted there is no available funding for general Transfort service until January 2015 and discussed the 2014 Transfort budget and public outreach process. Mayor Weitkunat asked if Sunday MAX service would be somewhat useless, given the lack of east and west connecting routes. Ravenschlag replied staff anticipates many riders on the Sunday MAX service, particularly during summer months, as biking and walking to stops would be possible. He stated staff is somewhat concerned about the use of MAX service without connecting routes during fall and winter months and stated Transfort is planning to submit budget offers for additional east-west connectivity on Sundays should MAX service be provided with this appropriation. Mayor Pro Tem Horak suggested postponing this item in order to consider Sunday service with some connecting routes. Councilmember Cunniff stated the budget process is a better place to contemplate the relative prioritization of this item. Councilmember Campana commended Ravenschlag for his work and suggested the possibility of less frequent routes being utilized during summer months. Councilmember Poppaw agreed with the idea. Ravenschlag noted operating only during summer months presents a challenge due to the required support services. Councilmember Overbeck asked about the cost savings of 60-minute interval service versus 15- minute interval service. Ravenschlag replied the cost savings would be $90,000 for 2014 and $140,000 for 2015. Packet Pg. 34 Attachment1.1: March 18, 2014 minutes (Minutes 3/18/14) March 18, 2014 112 Mayor Pro Tem Horak made a motion, seconded by Councilmember Overbeck, to postpone the item indefinitely. Councilmember Troxell commended Councilmember Campana’s suggestion but stated he would support the postponement in order to allow additional time for a more thoughtful process. Councilmember Cunniff suggested the possibility of running MAX service during specific Downtown events. City Manager Atteberry replied there are limitations in terms of FTA funding for chartering special events; however, he stated he will develop some options. The vote on the motion was as follows: Yeas: Horak, Weitkunat, Overbeck, Poppaw, Troxell, Campana and Cunniff. Nays: none. THE MOTION CARRIED. Resolution 2014-025 Authorizing the Retention of a Consultant to Recommend Appropriate Studies That Will Help the City Determine the Impacts that Hydraulic Fracturing and the Storage of its Waste Products May Have on Property Values and Human Health in the City of Fort Collins or on Lands Under its Jurisdiction, Adopted The following is the staff memorandum for this item. “EXECUTIVE SUMMARY Ballot Measure 2A, passed by Fort Collins voters in November 2013, places a five year moratorium on hydraulic fracturing and the storage of its waste products within the City of Fort Collins or on lands under its jurisdiction, in order to fully study the impacts of this process on property values and human health. The purpose of this item is to seek City Council authorization to proceed with hiring an outside consultant to help the City evaluate the way in which the City should carry out its responsibilities under Ballot Measure 2A to study these issues. Multiple studies are available for consideration. The consultant’s help is needed to: (1) help evaluate relevant studies; (2) identify gaps in the data that will be provided by existing and upcoming studies, (especially as relevant for Fort Collins local land use patterns, hydrogeology, and existing local oil and gas exploration and production methods); and (3) identify ways to fill those gaps. BACKGROUND / DISCUSSION Background On August 20, 2013, City Council placed a citizen-initiated ordinance on the November 5 ballot that imposed a 5-year moratorium on hydraulic fracturing and the storage of its waste products in Fort Collins. (See Attachment 1). Packet Pg. 35 Attachment1.1: March 18, 2014 minutes (Minutes 3/18/14) March 18, 2014 113 The ballot language states: “An ordinance placing a moratorium on hydraulic fracturing and the storage of its waste products within the City of Fort Collins or on lands under its jurisdiction for a period of five years, without exemption or exception, in order to fully study the impacts of this process on property values and human health, which moratorium can be lifted upon a ballot measure approved by the people of the City of Fort Collins and which shall apply retroactively as of the date this measure was found to have qualified for placement on the ballot.” The initiative was passed by the 56.4% of the voters of Fort Collins on November 5, 2013. Outside Expertise Regarding Studies The purpose of the moratorium is to enable the City to “fully study the impacts of… hydraulic fracturing and the storage of its waste products within the City of Fort Collins or on lands under its jurisdiction… on property values and human health”. At the end of the study period, staff and Council will be in a better position to assess the potential magnitude of the impacts that hydraulic fracturing may have on City residents, the need for local land use regulations to mitigate those impacts, and the extent of the City’s legal authority to enact such regulations. There are a number of upcoming regional oil and gas studies that may yield pertinent data about environmental and public health impacts over the next several years. While these studies will yield new information specific to hydraulic fracturing, hundreds (perhaps thousands) of existing oil and gas studies and human health and environmental risk assessments already exist that reveal a great deal of information about potential environmental and human health impacts. Given the large number of existing and planned studies, and the substantial cost associated with conducting studies, a potential first step for the City would be to hire an outside consultant to help evaluate relevant studies, identify gaps in data from existing and upcoming studies, (especially as relevant for Fort Collins local land use patterns, hydrogeology, and existing local oil and gas exploration and production methods), and recommend ways to fill those gaps. The City proposes to seek outside expertise in human health and ecological risk assessments, interpretation of existing public health studies, environmental studies, risk assessments, remediation site characterizations, and economic conditions insofar as such conditions may affect property values. The process for procuring the services in question is complicated by the fact that the Colorado Oil and Gas Association has filed suit against the City, seeking to have the voter-approved moratorium invalidated. Therefore, the expert retained by the City will likely serve not only as a consultant for the purposes of implementing Ballot Measure 2A but also as an expert witness in the litigation. Because of this potential dual role, staff is recommending that the consultant be retained for the purpose of providing “litigation services” within the meaning of the City Procurement Code, rather than “professional services.” The significance of this difference is that litigation services are procured by the City Attorney and not through a competitive process. In this situation, however, management staff, the City Attorney’s Office and outside counsel would work together to make the selection, and would seek input from the citizen groups who have sought to intervene in the above referenced litigation. Packet Pg. 36 Attachment1.1: March 18, 2014 minutes (Minutes 3/18/14) March 18, 2014 114 Desired Deliverables for Phase I Summary of existing data and information that are relevant to Ballot Measure 2A (e.g. the impacts that hydraulic fracturing and the storage of its waste products may have on human health and property values). Summary of possible future sources of data and information relevant to Ballot Measure 2A. Identification of anticipated contaminants of concern for current and possible future oil and gas exploration and production relevant to Ballot Measure 2A. Qualitative ranking of relative risks to human health and natural resources from existing and possible future oil and gas activities relevant to Ballot Measure 2A. Identification of data gaps in the studies in terms of their relevance to Fort Collins’ local land use patterns, hydrogeology, and existing and possible future local oil and gas exploration and production, and recommendations on ways to fill those data gaps. Proposed Timeline for Phase I March 18 City Council considers a resolution authorizing the City to seek outside expertise April Consultant selection complete July Consultant/team recommendation due Proposed Phase II - not to be contracted at this time Additional funding may be needed for other consultant services toward the end of the moratorium period as the results from regional studies are becoming available in order to further evaluate their applicability to Fort Collins. Depending on the results available at the time, the need for more data, desire for consultation on management of environmental liabilities, interest in conducting stakeholder engagement, and/or desire to perform a determinist risk assessment, these activities could cost a few hundred thousand dollars. FINANCIAL / ECONOMIC IMPACTS $50,000 has been identified in the City’s existing budget to cover expenses associated with Phase I. It is the City’s hope that the deliverables described above could be provided for less. ENVIRONMENTAL IMPACTS There are no direct environmental impacts associated with retaining outside expertise to evaluate studies relevant to Ballot Measure 2A, other than the minimal impacts associated with driving by the consultant/team and use of materials (paper, etc.) related to their work. BOARD / COMMISSION RECOMMENDATION Due to the urgent nature of obtaining Council direction on whether/how the City should proceed in obtaining outside expertise to help evaluate relevant studies, identify gaps, and recommend approaches for filling the gaps, boards and commissions were not engaged on this topic. Packet Pg. 37 Attachment1.1: March 18, 2014 minutes (Minutes 3/18/14) March 18, 2014 115 PUBLIC OUTREACH Due to the urgent nature of obtaining Council direction on whether/how the City should proceed in obtaining outside expertise to help evaluate relevant studies, identify gaps, and recommend approaches for filling the gaps, public outreach was not conducted.” Lucinda Smith, Environmental Services, stated this Resolution would allow retention of a consultant to aid in evaluating the existing and planned studies relevant to the moratorium ballot measure language, to identify whether there are any gaps in the data that will be forthcoming or that exist and to identify ways to fill those gaps, and to provide consultation and legal counsel regarding the studies. She noted the Colorado Oil and Gas Association is bringing suit against the City of Fort Collins seeking to invalidate the ballot measure. She detailed the proposed procurement process for this consultant and stated the estimated cost is approximately $20,000- $50,000, which has been identified in the City’s existing budget. Councilmember Cunniff made a motion, seconded by Councilmember Overbeck, to adopt Resolution 2013-025. Councilmember Troxell requested information regarding the proposed timeframe. Smith replied staff hopes to retain a consultant and have the initial analysis of available and anticipated data this summer. Laurie Kadrich, Community Development and Neighborhood Services Director, added a second phase may be needed with either this consultant or another to make recommendations regarding what is available that could be used to implement the ballot measure. Councilmember Troxell stated the studies need to be relevant to Fort Collins and noted part of the challenge in completing those studies locally is the ban on operations. Councilmember Cunniff stated this is evidence that the City is taking the moratorium and ballot language seriously and the will of the voters is being considered. The vote on the motion was as follows: Yeas: Weitkunat, Overbeck, Poppaw, Troxell, Campana, Cunniff and Horak. Nays: none. THE MOTION CARRIED. Ordinance No. 048, 2014, Authorizing the Execution of a New Intergovernmental Agreement Pertaining to a Regional Road Impact Fee Program, Adopting a Regional Road Impact Fee Schedule, Ratifying Certain Past Actions Related to Such Fee and Amending Sections 7.5-8 and 7.5-87 of the City Code, Adopted on First Reading The following is the staff memorandum for this item. “EXECUTIVE SUMMARY The purpose of this item is to execute a new intergovernmental agreement (IGA) with Larimer County that allows for the collection of a Regional Road Impact Fee at the time of development. Packet Pg. 38 Attachment1.1: March 18, 2014 minutes (Minutes 3/18/14) March 18, 2014 116 The Ordinance adopts a fee schedule and ratifies past collections and certain actions that were inconsistent with the City Code. The Ordinance also amends Section 7.5-85(d) of the City Code pertaining to the remittance and expenditure of the fee. BACKGROUND / DISCUSSION In 2000, the City and Larimer County entered into an IGA with Larimer County agreeing that the City would collect a Regional Road Impact Fee. The fee is collected at the time a building permit is issued. The Regional Road Impact Fee helps generate revenue for off-site road improvements that are necessitated by new development. The fee revenues are only used on capacity related improvements that are of mutual benefit to both the City and the Larimer County. The original written IGA was adopted in 2000 and expired in 2010; however, the parties have continued the Regional Road Fee Program as contemplated under the IGA. Even though the City’s collection of the fee is not conditioned upon the Agreement (it is in the City Code, Chapter 7), having an IGA in place articulates the need and the desire for collaboration between the City and County in responding to continued growth and development which will increase demand for road capacity on the regional road system. Therefore, a new IGA has been prepared and is being presented for Council’s consideration. The new IGA will remain in place indefinitely unless and until it is terminated by one of the parties. Either party can cancel it upon 60 days written notice. Originally, the fee was envisioned as a true regional fee, with all communities in Larimer County collecting a fee for roads outside the major communities. Ultimately, Fort Collins was the only community other than Larimer County to adopt the fee. Because of this, the fee has operated as a Larimer County-Fort Collins collaboration of resources and staff making improvements to regionally significant roads within the Fort Collins Growth Management Area. Recently completed projects include Taft Hill Road between Harmony and Horsetooth, the turn lanes at Taft Hill/Trilby intersection, turn lane improvements at Shields/Trilby and at Gulley’s Greenhouse, and Taft Hill/LaPorte intersection improvements. Future projects that need Council recognition as being of substantial benefit include Shields Street from Vine to Willox and the Shields Street and Vine intersection improvements. The Larimer County Land Use Code specifies that its Regional Transportation Capital Expansion Fees must be updated to reflect changes in road construction costs during the previous year. The methodology for adjustments is based on a two-year moving average calculated from the Colorado Construction Cost Index data compiled by Colorado Department of Transportation. Larimer County’s procedure for fee adjustments is to update the two-year moving average using the most recent prior year construction cost index data and calculate new adjusted fees. If the change is less than 5% the new fees become effective without further action by the Board of County Commissioners (BCC). If the increase exceeds 5% the County’s Land Use Code specifies that the BCC review and approve the fee change. The County typically adjusts and adopts new fees in July of each year. The 2013 Fee Table is included as Exhibit B to the Ordinance. The fee change for a regional single family detached home will be a $12 increase Packet Pg. 39 Attachment1.1: March 18, 2014 minutes (Minutes 3/18/14) March 18, 2014 117 (4.7% increase). Under the City Code, changes in the amount of the County fee do not take effect in the City until the City Council approves a new fee schedule. Council is asked to adopt the latest Regional Road Impact Fee schedule. Ratifications After the original IGA was adopted and the fee was added to City Code in 2000, fee adjustments were made in 2008, 2009, 2010, and 2011. However, the adjustments to the City’s fee schedule were not presented to the Council for approval before being implemented. Therefore, because the Code requires Council approval of the fee schedule, Section 2 of the Ordinance ratifies those fee amounts. Finding of Substantial Benefit The City Code and the IGA both require that road improvements be listed on the County capital improvement inventory (CIP) and be considered by Council to be of substantial benefit to the residents of the City. Of the five projects completed under this program, one was not formally approved by City Council. That project at a cost of cost $117,000 was the Taft Hill/LaPorte intersection improvements., Two future projects, that were not on the CIP, the Larimer County Shields Street Improvements and the Vine/Shields Intersection project, also have not been formally approved by Council to be of substantial benefit. The Larimer County Shields Improvements include curb and gutter, bike lanes and sidewalk from Vine to the Poudre River, and travel lanes and bike lanes from the Poudre River to Willox. The Vine/Shields project is an intersection improvement. Section 3 of this ordinance identifies all three projects as having substantial benefit to the residents of Fort Collins. Operational Improvements The City Code amendments, and the IGA, reflect additional operational changes, including: Clarifying that improvement projects shall be on the most recent Regional Road CIP and be approved by City Council as being of substantial benefit to City residents. Council approval of individual projects will no longer be required as long as those projects are on the Council approved Regional Road CIP and sufficient funds have been appropriated to construct the projects. Eliminating the holding period for revenues to allow for consistency with the way in which other fees are currently handled; fee revenues will be forwarded monthly to the County. Eliminating the requirement that any City Code modifications related to the program be approved by the County. Past and Future Practices City staff clearly acknowledges the inconsistencies between the Regional Road Fee practices, the City Code and IGA. These inconsistencies are driving changes to tracking agreements and contracts Citywide. In regard to the Regional Road Impact Fee Program, the following will now become practice: Packet Pg. 40 Attachment1.1: March 18, 2014 minutes (Minutes 3/18/14) March 18, 2014 118 Any changes to this fee will be brought with other annual fee changes which are customarily brought to Council in December in conjunction with the annual budget appropriation ordinance. The County is aware of the lag time in our schedules. Planning, Development, and Transportation will “own” this fee and will ensure there is a review of the program at least every three years. The County will provide a “City-specific” CIP reflecting the benefit district to the City of Fort Collins. It is important to note the benefits of this program. Since Fort Collins is the only community participating, all improvements to date and into the future are within the City’s Growth Management Area (GMA) and directly benefit Fort Collins residents. The fees have been and are reasonable and have not exceeded the costs of any projects. Transportation is a high priority for the community and is an area that is in continual need of funding to meet shortfalls and improve infrastructure. This fee has facilitated improvements that otherwise would not have happened. FINANCIAL / ECONOMIC IMPACTS The fees are collected on behalf of Larimer County and the program. Revenues from the fees will pass through City accounts and will not affect City revenue limits under Article X, Section 20. Adoption will result in an increase to development fee payers.” Councilmember Campana withdrew from the discussion of this item due to a conflict of interest. Ginny Sawyer, Policy and Project Manager, discussed the origin of the regional road impact fee and stated this Ordinance would ratify the fee adjustments, finding substantial benefit for three projects, and adopting a new Intergovernmental Agreement (IGA). She discussed how these fees and Intergovernmental Agreements will be updated and adjusted in the future. Councilmember Cunniff asked about the expiration of this IGA. Sawyer replied it expired in 2010. City Manager Atteberry stated this was a regional impact fee which was intended to last in perpetuity; therefore the expiration of the IGA was not intentional. Councilmember Cunniff asked why the IGA was allowed to expire. City Manager Atteberry replied it was a mistake. Sawyer concurred and noted the new IGA is written in perpetuity, though any party can terminate with notice. Councilmember Cunniff questioned why the fees were still collected by both the City and County despite the lapsed IGA. Mark Engemoen, Larimer County Public Works Director, replied the fee was originally intended to last in perpetuity and stated the IGA aspect was overlooked given the cooperative nature of projects completed between the City and County. He stated the original intention was to have more parties to the IGA, such as the City of Loveland. Councilmember Cunniff expressed concern about other date-specific issues. City Attorney Roy stated that, although the written agreement had expired, the City’s authority to collect the fee had not lapsed. Packet Pg. 41 Attachment1.1: March 18, 2014 minutes (Minutes 3/18/14) March 18, 2014 119 City Manager Atteberry stated a review of every Ordinance and Resolution since 2000 has just begun to ensure dates and other commitments have been honored. Additionally, he stated he has requested that the Larimer County Manager would seek this kind of fee in jurisdictions throughout the County. Mayor Weitkunat stated she was on Council at the time this fee was adopted and noted sunset provisions were frequently included on these types of agreements. Mayor Pro Tem Horak made a motion, seconded by Councilmember Troxell, to adopt Ordinance No. 048, 2014, on First Reading. Councilmember Cunniff stated he would not support the motion given concerns that this regional fee only has Fort Collins and Larimer County as partners. The vote on the motion was as follows: Yeas: Poppaw, Troxell, Horak and Weitkunat. Nays: Overbeck and Cunniff. THE MOTION CARRIED. Items Relating to the Boxelder Creek Watershed, Adopted on First Reading The following is the staff memorandum for this item. “EXECUTIVE SUMMARY Resolution 2014-026 Authorizing the Execution of an Intergovernmental Agreement with Larimer County, the Timnath Development Authority, the Town of Wellington, and the Boxelder Basin Regional Stormwater Authority Regarding Improvements to County Road 52. First Reading of Ordinance No. 047, 2014, Approving the Sixth Amendment to the Fort Collins-Timnath Intergovernmental Agreement Regarding Cooperation on Annexation, Growth Management, and Related Issues, to Update the Terms of Cost Sharing for Stormwater Improvements in the Boxelder Basin. The purpose of this item is to approve an Intergovernmental Agreement (IGA) between the City and Larimer County and the Town of Timnath to share equally in providing the necessary funds to the Boxelder Basin Regional Stormwater Authority (BBRSA) to pay the cost of the County Road 52 Project that is over and above the allocated Colorado Water Conservation Board (CWCB) loan proceeds and to amend the Fort Collins – Timnath Intergovernmental Agreement (IGA) by revising Article 7 to reflect updated stormwater projects and associated cost sharing. BACKGROUND / DISCUSSION The Boxelder Creek Watershed encompasses over 265 square miles and extends from just north of the Wyoming border to the Poudre River on the south. Several local governments have worked together since 2005 to identify ways to mitigate flood hazards within the area that is tributary to Boxelder Creek from County Road 70 north of Wellington south to where Boxelder Creek floodwaters join the Cache La Poudre River. The Boxelder Creek 100-Year Packet Pg. 42 Attachment1.1: March 18, 2014 minutes (Minutes 3/18/14) March 18, 2014 120 floodplain impacts approximately 4,900 acres of land within the regional area. Due to the numerous split flows and diversions that occur, the potential for overtopping frequently used roads and the probability of the existing conveyance system to become blocked, there is the potential for loss of life and/or bodily injury during the 100-Year Flood. The communities of Fort Collins, Wellington, Timnath, and Larimer County all share a common goal in mitigating the flood hazards associated with Boxelder Creek. In August 2008, Fort Collins, Larimer County, Wellington and the City of Fort Collins entered into an intergovernmental agreement (IGA) to establish the Boxelder Basin Regional Stormwater Authority (BBRSA). The BBRSA was established to fund and implement the Boxelder Creek Regional Stormwater Master Plan Phase I regional stormwater projects listed below: Diversion of Coal Creek to Clark Reservoir Edson (East Side) Detention Reservoir Middle Boxelder Creek Stream Improvements Larimer and Weld Crossing Structure. Construction of the first BBRSA regional stormwater project (Diversion of Coal Creek to Clark Reservoir) was completed in 2011. In February 2009, Fort Collins and Timnath entered into an intergovernmental agreement (IGA) regarding Growth Management Areas (GMAs) for the two communities, associated issues authorizing the disposition of certain properties, and stormwater and floodplain issues associated with Boxelder Creek and the “Boxelder Creek Overflow Project.” There have been five (5) amendments to the IGA. Revisions to the BBRSA’s Stormwater Master Plan and the stormwater provisions of the Fort Collins/Timnath IGA are necessary in order to address the following considerations: 1. The original proposed location of the East Side Detention Facility (ESDF) could not provide the required detention and would result in the condemnation of homes. An extensive Siting Study was initiated in 2010. Ultimately the site adjacent to the existing Gray Lakes Reservoirs was selected as the best location from flood reduction, cost and constructability perspectives. 2. Locating the ESDF downstream of County Road 52 eliminated the need for the Middle Boxelder Creek Stream Improvements conceptually identified in the original stormwater master plan. 3. Relocation of the ESDF downstream of County Road 52 results in a reduction in the original benefits of a reduced (narrower) floodplain and shallower overtopping of County Roads 54 to 60. The design and construction of County Road 52 Improvements will offset the financial impacts associated with road and bridge infrastructure costs. 4. The Larimer and Weld Canal Crossing Structure (LWCCS) is needed to safely cross stormwater runoff over the canal. Packet Pg. 43 Attachment1.1: March 18, 2014 minutes (Minutes 3/18/14) March 18, 2014 121 5. It was determined that the ESDF could be enlarged in order to reduce downstream flows, allowing for the potential unblocking of two existing culverts beneath Interstate Highway 25. 6. Timnath entered into an IGA with the BBRSA to financially participate in the design and construction of the larger ESDF and LWCCS regional stormwater projects. 7. Fort Collins and Timnath agreed to amend their IGA to eliminate the original “Boxelder Creek Overflow Project” and instead jointly fund, design and construct the Boxelder Outfall Improvements Project on Boxelder Creek from Interstate Highway 25 downstream to Prospect Road and then to the Cache La Poudre River. 8. Upon completion of the ESDF, LWCCS, County Road 52 improvements and the unblocking of two existing culverts on Boxelder Creek beneath Interstate Highway 25, the Boxelder Creek Overflow 100-Year floodplain through Timnath is eliminated. Accordingly an updated plan for stormwater improvements was developed which consists of one set of projects to be designed and constructed by the BBRSA and a second set of projects to be funded, designed and constructed by Fort Collins and Timnath. The two sets of projects are together referred to as the Boxelder Creek Flood Mitigation Projects and are described below: BBRSA Projects (a) East Side Detention Facility (ESDF) -- An 1800 Acre-feet stormwater detention facility to be constructed on the east side of Interstate 25 adjacent to the Gray Lakes Reservoirs that includes an earthen embankment between County Road 50 and County Road 52, an un- gated 12’ x 8’ box culvert outfall, a reinforced spillway, and related appurtenances. (b) Larimer Weld Canal Crossing Structure (LWCCS) -- A defined weir on the south side of the Larimer Weld Canal at its crossing with Boxelder Creek crossing located approximately one mile south of ESDF that includes a lowered canal embankment fortified with grouted rip rap and related appurtenances. (c) County Road 52 Improvements (CR 52 Improvements) -- The installation of four 4’ x 20’ concrete box culverts under County Road 52, tree removal along the north side of the roadway, grading an area within the adjacent golf course north of County Road 52 and related appurtenances. Fort Collins / Timnath Projects (d) Lake Canal Crossing of Boxelder Creek -- A siphon and associated appurtenances to transport flows in the Lake Canal beneath Boxelder Creek just west of Interstate Highway 25. (e) Boxelder Creek Outfall and Prospect Road Improvements -- A side spill weir (split flow channel) and flood conveyance channel on Boxelder Creek upstream of Prospect Road along with six 12’ x 4’ concrete box culverts beneath Prospect Road west of Interstate Packet Pg. 44 Attachment1.1: March 18, 2014 minutes (Minutes 3/18/14) March 18, 2014 122 Highway 25, associated utility relocations (i.e. electric, water, wastewater, gas and telecommunications), roadway restoration, and a flood conveyance channel south of Prospect Road to the Poudre River and associated appurtenances. (f) Boxelder Creek at Interstate Highway 25 -- Drainageway and channel improvements and grading adjacent to and upstream (east) of Interstate Highway 25 and the opening of two existing blocked culverts beneath Interstate Highway 25 A staff update on the BBRSA and associated projects on Boxelder Creek was presented at the January 28, 2014 City Council Work Session. FINANCIAL / ECONOMIC IMPACTS In light of the BBRSA Stormwater Master Plan revisions, an update of the estimated Benefit/Cost Ratio of the regional stormwater projects was completed to confirm the financial benefits. The table below uses information on damage losses from the 2006 Boxelder Creek Regional Stormwater Master Plan and compares the losses with the current estimated construction costs for the remaining BBRSA projects (East SDF, LWCCS, and CR52 Improvements). 1 Present Worth Damage Losses Estimated in 2006 Master Plan 10/30/2013 Boxelder Creek Re ach Potential Damages at Existing Conditions Potential Damages after construction of ESDF and LWCCS Resulting Benefits (Damage Reductions) Middle Boxelder Creek (CR54 to I25) $ 9,990,993 $ 5,000,000 $ 4,990,993 Boxelder Overflow $ 9,007,028 $ - $ 9,007,028 Lower Boxelder Creek (I25 to Poudre) $ 2,015,535 $ 811,806 $ 1,203,729 Boxelder I 25 Split $ 10,224,807 $ - $ 10,224,807 Cooper Slough $ 27,344,409 $ 8,623,624 $ 18,720,785 Cache La Poudre Overflow $ 2,311,180 $ 220,493 $ 2,090,687 Totals $ 60,893,952 $ 14,655,923 $ 46,238,029 2 Current Construction Cost Estimate (ESDF, LWCCS& CR 52 Improvements) $ 11,700,000 Estimated 1 Source: T able Benefit/C-3 Appendices Cost Ratio BOXELDER CREEK REGIONAL ST ORM WAT ER M 3.AST 95 ER PLAN October 2006 2 Initial Total Costs to be offs et by Authority Revenue & TDA contributions & Additional Funding from New IGA Review of the table shows an updated Benefit/Cost Ratio of 3.95. In most instances, a B/C ratio of 1.5 or 2 is considered very good. Such a high B/C ratio is very unusual and demonstrates the dramatic benefits that construction of the BBRSA projects has with regard to the reduction in damages from a 100-Year flood event. Summary – Fort Collins Benefits There are significant financial benefits and reductions in flood damage to properties located with the City of Fort Collins and its GMA as shown in the summary table below. Packet Pg. 45 Attachment1.1: March 18, 2014 minutes (Minutes 3/18/14) March 18, 2014 123 Cooper Slough The BBRSA regional stormwater projects will eliminate the westerly Boxelder Creek overflow that extends south along the east side of Interstate Highway 25. The Cooper Slough will benefit by a dramatic reduction in 100-Year flood flows that currently cross beneath Interstate Highway 25 (I-25) in the Larimer and Weld Irrigation Canal and spill down the Cooper Slough Drainageway. Fort Collins saves $11.3 Million in reduced stormwater infrastructure costs on the Cooper Slough. Boxelder Creek The BBRSA regional stormwater projects will eliminate the westerly Boxelder Creek overflow that extends south along the east side of Interstate Highway 25. The ESDF facility will reduce the 100-Year Flood flows downstream. With Fort Collins and Timnath agreeing to jointly fund and construct improvements near and upstream of the Boxelder Creek crossing of Prospect Road, the two large box culverts at the crossing of Interstate 25 (I-25) and Boxelder Creek can be unplugged. As a result, there is an estimated $6 Million savings for roads within the Fort Collins GMA (County Roads 54, 52, 50, 48 and State Highway 14) and a $2.1 Million savings for stormwater improvements at Boxelder Creek and Prospect Road. County Road 52 IGA The current total cost estimate to construct the ESDF, LWCCS and CR 52 improvements is $11.75 million. Approximately $9 million of CWCB loans will be used towards the projects. An estimated $1.72 million of BBRSA funds and Timnath Development Authority (TDA) contributions will be received and applied towards the total project costs. That leaves a shortfall of $1.03 million. Larimer County, Timnath and Fort Collins all benefit from the construction of the BBRSA projects and have agreed to share equally in providing the funding needed to cover the shortfall. To allow for contingencies, the entities have agreed to share equally the additional costs up to a maximum of $0.5 million each (total of $1.5 million). The County Road 52 IGA (Exhibit A to Resolution 2014-026) outlines the specific provisions of this agreement. Packet Pg. 46 Attachment1.1: March 18, 2014 minutes (Minutes 3/18/14) March 18, 2014 124 Sixth Amendment to the Fort Collins/Timnath IGA Fort Collins and Timnath agree and acknowledge that it is in the best interest of both parties to work cooperatively and in coordination with the BBRSA to design and construct projects along Boxelder Creek and its associated flow paths to mitigate the impacts of flooding for the mutual benefit of the parties as well as the region. Accordingly, they have agreed to construct the Fort Collins/Timnath projects identified previously in this memorandum. The total cost of these projects is currently estimated to be $4 million. Fort Collins and Timnath have agreed to share equally in the costs to complete the projects. As part of this agreement, Fort Collins will be able to use the remaining funds ($1.75 million) originally placed into escrow as part of the original IGA towards its share of the project funding. Fort Collins will need to contribute an additional amount of up to $250,000 to fully fund fifty percent (50%) of the total cost of the Fort Collins/Timnath Projects. The parties agree that the escrowed funds, together with the additional Fort Collins funds, are intended as a match to payments by Timnath, or the TDA on behalf of Timnath to complete the projects. ENVIRONMENTAL IMPACTS The BBRSA has already received Endangered Act Species (ESA) clearance for its projects and is working with the U.S. Army Corps of Engineers (USACE) to receive the required 404 Permit. In accordance with the language in the original Boxelder IGA, the location, size and impacts of any BBRSA or Fort Collins/Timnath stormwater improvements projects built on or in the vicinity of the Arapaho Bend Natural Area east of Interstate Highway 25 shall be minimized to the extent reasonably possible and that all construction activities and improvements shall be sensitive to the natural features of the affected property. Any area impacted by construction activities shall be restored to pre-construction natural conditions to the extent reasonably possible, using native vegetation. As a result of the relocation of the ESDF downstream, the Middle Boxelder Creek improvements were eliminated, reducing potential impacts on the section of Boxelder Creek from County Roads 48 to 54. As a result of the replacement of the Boxelder Overflow Project originally identified in the IGA with the proposed Boxelder Creek Flood Mitigation projects, there will be a reduction in environmental impacts to Boxelder Creek, including the Arapaho Bend Natural Area. The Boxelder Outfall Project will also complete all appropriate environmental permitting including the ESA Clearance and USACE 404 Permit. PUBLIC OUTREACH Information on the Boxelder Basin Regional Stormwater Authority and progress on its regional projects is presented monthly at the BBRSA Board of Directors meeting which is held at 4:00 PM the fourth Wednesday of each month at the Leeper Center, 3800 Wilson Avenue, Wellington, Colorado. The Board Meeting agendas and minutes along with relevant studies, mapping and other information are available for review at the following BBRSA website hyperlink: http://www.boxelderauthority.org/. In addition, the BBRSA maintains a mailing list of parties who have expressed interest in receiving information and regularly distributes Board Meeting agendas and materials. The BBRSA also publishes and distributes a quarterly newsletter which provides information and updates on the authority and its programs. Packet Pg. 47 Attachment1.1: March 18, 2014 minutes (Minutes 3/18/14) March 18, 2014 125 Comprehensive updates on the BBRSA were presented at the recent public meetings listed below: January 28, 2014 City Council Work Session February 26, 2014 BBRSA Board of Directors Work Session.” Ken Sampley, Stormwater Floodplain Program Manager, reviewed the items and their benefit to the City. Councilmember Cunniff requested information regarding the funding sources for the Boxelder Stormwater District. Sampley replied the Boxelder Stormwater Authority is funded by stormwater service fees and stormwater development fees. The City collects the Boxelder Basin fees and then distributes them to the Stormwater Authority. Councilmember Cunniff asked if progress is being made regarding comparing acquisition costs within the 100-year floodplain to projects such as this. Sampley replied there are currently no projects for which that type of analysis would be appropriate; however, that will be completed in the future. Councilmember Cunniff asked what Timnath’s source of funding will be. Sampley replied Timnath is planning to provide funding through the Timnath Development Authority; however, the agreements themselves show the Town of Timnath as being the responsible party. Councilmember Overbeck asked if eminent domain processes are part of this agreement. Sampley replied initial notices of intent to acquire properties have been sent out and there is a possibility Council could be asked to consider the use of eminent domain. Mayor Pro Tem Horak made a motion, seconded by Councilmember Troxell, to adopt Resolution 2014-026. Councilmember Cunniff stated he will not support the motion as he has had concerns regarding the Boxelder project, process and governance model. Councilmember Overbeck agreed with Councilmember Cunniff and cited concerns regarding eminent domain. The vote on the motion was as follows: Yeas: Troxell, Campana, Horak and Weitkunat. Nays: Poppaw, Overbeck and Cunniff. THE MOTION CARRIED. Mayor Pro Tem Horak made a motion, seconded by Councilmember Campana, to adopt Ordinance No. 047, 2014, on First Reading. The vote on the motion was as follows: Yeas: Troxell, Campana, Horak and Weitkunat. Nays: Poppaw, Overbeck and Cunniff. THE MOTION CARRIED. Packet Pg. 48 Attachment1.1: March 18, 2014 minutes (Minutes 3/18/14) March 18, 2014 126 Other Business Councilmember Troxell made a motion, seconded by Mayor Weitkunat, to reconsider the vote on the amendment to Ordinance No. 041, 2014, regulating retail marijuana establishments. City Attorney Roy clarified Councilmember Troxell is moving to open the motion to amend and that a motion can be amended only one additional time. The vote on the motion to reconsider was as follows: Yeas: Campana, Horak, Weitkunat, Overbeck, Poppaw and Troxell. Nays: Cunniff. THE MOTION CARRIED. Councilmember Overbeck made a motion to amend, seconded by Councilmember Poppaw, to replace Option A with Option B in Section 15-608 of Ordinance No. 041, 2014. Councilmember Cunniff stated he would not support the amended motion given the fact the item was reconsidered after citizens had departed. The vote on the motion to amend was as follows: Yeas: Overbeck and Poppaw. Nays: Cunniff, Horak, Weitkunat, Troxell and Campana. THE MOTION WAS DEFEATED. Councilmember Troxell clarified he wished to have the item reconsidered in order to clarify his abstention vote as being affirmative. The vote on the motion to adopt Option A was as follows: Yeas: Horak, Weitkunat, Poppaw, Troxell and Campana. Nays: Overbeck and Cunniff. THE MOTION CARRIED. The vote on the motion to adopt Ordinance No. 041, 2014, as amended, was as follows: Yeas: Overbeck, Poppaw, Cunniff and Horak. Nays: Weitkunat, Troxell and Campana. THE MOTION CARRIED. Councilmember Cunniff stated the Council Legislative Committee has recommended Council support Representative Ginal’s bill and asked if Council would recommend attendance during testimony regarding the bill by a member of the Legislative Committee. Council supported the suggestion. Packet Pg. 49 Attachment1.1: March 18, 2014 minutes (Minutes 3/18/14) March 18, 2014 127 Adjournment The meeting adjourned at 10:28 p.m. _________________________________ Mayor ATTEST: _____________________________ City Clerk Packet Pg. 50 Attachment1.1: March 18, 2014 minutes (Minutes 3/18/14) Agenda Item 2 Item # 2 Page 1 AGENDA ITEM SUMMARY April 15, 2014 City Council STAFF Lindsay Ex, Senior Environmental Planner SUBJECT Postponement of Items Relating to the Kechter Farm Annexation and Zoning to May 6, 2014. EXECUTIVE SUMMARY Staff requests that Second Reading of the Kechter Farm Annexation and Zoning Ordinances (Ordinance Nos. 005 and 006, 2014) be postponed until May 6, 2014. The final plat approval should be considered by the Board of County Commissioners in late April. Under the Intergovernmental Agreement (IGA) with Larimer County, the City has agreed to not annex lands within the Fossil Creek Reservoir Area Plan until after final plan approval by the County. Postponing this item until the May 6 meeting will honor the City’s commitment in the IGA. Packet Pg. 51 Agenda Item 3 Item # 3 Page 1 AGENDA ITEM SUMMARY April 15, 2014 City Council STAFF Renee Lee, Therapeutic Recreation Specialist SUBJECT Second Reading of Ordinance No. 049, 2014, Appropriating Unanticipated Grant Revenue in the Recreation Fund for the Adaptive Recreation Opportunities Program Paralympic Sport Club. EXECUTIVE SUMMARY This Ordinance, unanimously adopted on First Reading on April 1, 2014, appropriates unanticipated grant revenue in the recreation fund to be used for general operating support for the Adaptive Recreation Opportunities program Paralympic Sport Club. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. Copy of First Reading Agenda Item Summary, April 1, 2014 (w/o attachments) (PDF) 2. Ordinance No. 049, 2014 (PDF) Packet Pg. 52 Agenda Item 6 Item # 6 Page 1 AGENDA ITEM SUMMARY April 1, 2014 City Council STAFF Renee Lee, Therapeutic Recreation Specialist SUBJECT First Reading of Ordinance No. 049, 2014, Appropriating Unanticipated Grant Revenue in the Recreation Fund for the Adaptive Recreation Opportunities Program Paralympic Sport Club. EXECUTIVE SUMMARY The purpose of this item is to appropriate unanticipated grant revenue in the recreation fund to be used for general operating support for the Adaptive Recreation Opportunities program Paralympic Sport Club. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION The United States Olympic Committee (USOC) has awarded to the Fort Collins Recreation Department, Adaptive Recreation Opportunities program (ARO) a grant in the amount of $15,000 during the funding cycle of October 2013-September 2014. This grant opportunity is made available through a partnership between the USOC and the United States Department of Veterans Affairs (VA) for the U.S. Paralympics Integrated Adaptive Sports Program, which provides integrated adaptive sports for disabled veterans and disabled members of the Armed Forces. ARO has operated an established Paralympic sport club since 2010 and is extremely fortunate to have the opportunity to collaborate with the USOC to provide adaptive sport instruction and opportunities to veterans and service members of the U.S. Armed Forces who have become physically disabled and are transitioning back into the community. The USOC grant subaward will allow ARO to provide competitive adaptive sport programs and opportunities for individuals with disabilities to develop independence, confidence, and fitness through participation in community sports, recreation, and educational programs. The grant funding will provide for qualified instructors, coaching certification, and facility, transportation and equipment costs as related to providing veteran-specific opportunities in two Paralympics sports: swimming and archery. Other existing ARO Paralympics sport club offerings, including wheelchair rugby, cycling, guided running and goalball, will also benefit through use of grant funds for equipment maintenance, replacement and coaches training. Staff looks forward to this project and further strengthening the partnership with the USOC and VA to serve veterans with physical and visual disabilities. ATTACHMENTS 1. VA Grant Letter of Intent (PDF) Packet Pg. 53 Attachment3.1: Copy of First Reading Agenda Item Summary, April 1, 2014 (w/o attachments) (SR 049 US Paralympic Integrated Adapted - 1 - ORDINANCE NO. 049, 2014 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING UNANTICIPATED GRANT REVENUE IN THE RECREATION FUND FOR THE ADAPTIVE RECREATION OPPORTUNITIES PROGRAM PARALYMPIC SPORT CLUB WHEREAS, the Recreation Department’s Adaptive Recreation Opportunities program (ARO) has been selected by the United States Olympic Committee (USOC) to receive a grant in the amount of $15,000 during the funding cycle of October 2013- September 2014; and WHEREAS, this grant opportunity is made available through a partnership between the USOC and the United States Department of Veterans Affairs (VA) for the U.S. Paralympics Integrated Adaptive Sports Program, which provides integrated adaptive sports for disabled veterans and disabled members of the Armed Forces; and WHEREAS, the grant totals $15,000, which includes funding for qualified instructors, coaching certification and facility, transportation and equipment costs as related to providing veteran specific opportunities in two Paralympics sports: swimming and archery; 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 Recreation Fund to exceed the current estimate of actual and anticipated revenues to be received in that fund during any fiscal year. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that there is hereby appropriated for expenditure from unanticipated grant revenue in the Recreation Fund the sum of FIFTEEN THOUSAND DOLLARS ($15,000) for the ARO program partnership with the USOC and VA to serve veterans with physical and visual disabilities. Packet Pg. 54 Attachment3.2: Ordinance No. 049, 2014 (SR 049 US Paralympic Integrated Adapted Sports Program Grant) - 2 - Introduced, considered favorably on first reading, and ordered published this 1st day of April, A.D. 2014, and to be presented for final passage on the 15th day of April, A.D. 2014. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 15th day of April, A.D. 2014. __________________________________ Mayor ATTEST: _______________________________ City Clerk Packet Pg. 55 Attachment3.2: Ordinance No. 049, 2014 (SR 049 US Paralympic Integrated Adapted Sports Program Grant) Agenda Item 4 Item # 4 Page 1 AGENDA ITEM SUMMARY April 15, 2014 City Council STAFF Susie Gordon, Senior Environmental Planner SUBJECT Second Reading of Ordinance No. 050, 2014 Appropriating Prior Year Reserves in the General Fund for Waste Reduction and Diversion Projects to be Approved Through the Waste Innovation Program. EXECUTIVE SUMMARY This Ordinance, unanimously adopted on First Reading on April 1, 2014, shifts $18,794 accumulated during 2013 in the Waste Innovation Fund account into the City’s General Fund account for approved projects to develop new organizational processes to enable departments to divert more waste material from landfill disposal. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. First Reading Agenda Item Summary, April 1, 2014 (w/o attachments) (PDF) 2. Ordinance No. 050, 2014 (PDF) Packet Pg. 56 Agenda Item 7 Item # 7 Page 1 AGENDA ITEM SUMMARY April 1, 2014 City Council STAFF Susie Gordon, Senior Environmental Planner SUBJECT First Reading of Ordinance No. 050, 2014, Appropriating Prior Year Reserves in the General Fund for Waste Reduction and Diversion Projects to be Approved Through the Waste Innovation Program. EXECUTIVE SUMMARY The purpose of this item is to shift $18,794 accumulated during 2013 in the Waste Innovation Fund account into the City’s General Fund account for approved projects to develop new organizational processes to enable departments to divert more waste material from landfill disposal. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION The City Manager created a fund in 2010 to pay for projects that improve the City’s organizational ability to divert waste generated by municipal activities from being disposed in the Larimer County landfill. Discarded material and trash that City crews self-haul to the landfill is charged only 28 cents/cubic yard by Larimer County Solid Waste Department, which is passed through in payment to the state for landfill regulatory management and monitoring programs. The balance of the regular “tipping fee” at the landfill, $5.27 per cubic yard, is placed in the City’s Waste Innovation Program (WIP) fund. WIP revenues are received from 15 City departments that self-haul various types of waste to the landfill in truckloads. An interdepartmental group of employees participates in awarding funds when requests are received from departments. Members of this group also act as “waste reduction champions” throughout the organization and communicate with crews about how to apply these Best Management Practices in City operations During 2013, projects were approved that allowed Water Operations staff in the Utilities to successfully screen wet dirt excavated from water main repair projects, and for the Streets Department to purchase a power screen for refining aggregates at the Crushing Facility (Hoffman Mill Road). Both projects quickly demonstrated field crews’ ability to reach higher new levels of waste diversion for the City and for the community at large. Investments made in the new equipment have also allowed the City to save money, by utilizing road base material made at the Crushing Facility for paving projects and producing good quality fill dirt for engineering purposes. FINANCIAL / ECONOMIC IMPACT The appropriation will make $18,794 available for emerging City organization waste reduction projects. Staff proposals that have been submitted to the Waste Innovation Program will be competitively reviewed and awarded during 2014, thereafter enabling new cost-savings measures to be practiced by field crews throughout the organization. Packet Pg. 57 Attachment4.1: First Reading Agenda Item Summary, April 1, 2014 (w/o attachments) (SR 050 - Appropriating Prior Year Reserves for Waste Agenda Item 7 Item # 7 Page 2 ENVIRONMENTAL IMPACTS WIP funds are intended to help City departments reduce their trash sent to the landfill, thereby reducing methane emissions, extending the lifespan of the Larimer County Landfill, and recovering reusable commodities. Putting recycled materials to use instead of producing new paving products helps the City prevent emissions of greenhouse gases that would have been generated to produce virgin-content concrete and asphalt. Packet Pg. 58 Attachment4.1: First Reading Agenda Item Summary, April 1, 2014 (w/o attachments) (SR 050 - Appropriating Prior Year Reserves for Waste - 1 - ORDINANCE NO. 050, 2014 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING PRIOR YEAR RESERVES IN THE GENERAL FUND FOR WASTE REDUCTION AND DIVERSION PROJECTS TO BE APPROVED THROUGH THE WASTE INNOVATION PROGRAM WHEREAS, in 2010, the City created the Waste Innovation Program (the “WIP”) to offer grants that allow City departments to initiate new waste diversion and recycling projects with special attention to departments that have larger quantities of waste that is self-hauled to the Larimer County Landfill; and WHEREAS, WIP Funds are held in a General Fund Reserve account until awarded; and WHEREAS, employees on an interdepartmental team administer the WIP funds and act as liaisons for incorporating waste reduction and promoting recycling strategies when requests are received from participating City departments; and WHEREAS, multiple waste reduction and diversion projects have been submitted to the WIP team for review for funding in 2014; and WHEREAS, Article V, Section 9, of the City Charter permits the City Council to appropriate by ordinance at any time during the fiscal year such funds for expenditure as may be available from reserves accumulated in prior years, notwithstanding that such reserves were not previously appropriated; and NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that there is hereby appropriated for expenditure from prior year reserves in the General Fund the sum of EIGHTEEN THOUSAND SEVEN HUNDRED NINETY FOUR DOLLARS ($18,794) for waste reduction and diversion projects to be approved and administered through the Waste Innovation Program. Introduced, considered favorably on first reading, and ordered published this 1st day of April, A.D. 2014, and to be presented for final passage on the 15th day of April, A.D. 2014. __________________________________ Mayor ATTEST: _______________________________ City Clerk Packet Pg. 59 Attachment4.2: Ordinance No. 050, 2014 (SR 050 - Appropriating Prior Year Reserves for Waste Reduction) - 2 - Passed and adopted on final reading on the 15th day of April, A.D. 2014. __________________________________ Mayor ATTEST: _______________________________ City Clerk Packet Pg. 60 Attachment4.2: Ordinance No. 050, 2014 (SR 050 - Appropriating Prior Year Reserves for Waste Reduction) Agenda Item 5 Item # 5 Page 1 AGENDA ITEM SUMMARY April 15, 2014 City Council STAFF Lawrence Pollack, Budget & Performance Measurement Manager Mike Beckstead, Chief Financial Officer SUBJECT Second Reading of Ordinance No. 051, 2014, Reappropriating Funds Previously Appropriated in 2013 But Not Expended or Encumbered in 2013. EXECUTIVE SUMMARY This Ordinance, unanimously adopted on First Reading on April 1, 2014, authorizes appropriation of funds that were authorized in 2013 for various purposes, but were not spent or encumbered in 2013. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. Copy of First Reading of Agenda Item Summary, April 1, 2014 (w/o attachments) (PDF) Packet Pg. 61 Agenda Item 8 Item # 8 Page 1 AGENDA ITEM SUMMARY April 1, 2014 City Council STAFF Lawrence Pollack, Budget & Performance Measurement Manager Mike Beckstead, Chief Financial Officer SUBJECT First Reading of Ordinance No. 051, 2014, Appropriating Prior Year Reserves for Lapsed Expenditures Authorized in 2013. EXECUTIVE SUMMARY City Council authorized expenditures in 2013 for various purposes. Not all of the authorized expenditures were spent or could be encumbered in 2013 because: • there was not sufficient time to complete bidding in 2013 and therefore, there was no known vendor or binding contract as required to expend or encumber some of the monies • the project for which the dollars were originally appropriated by Council could not be completed during 2013 and re-appropriation of those dollars is necessary for completion of the project in 2014 • to carry on programs, services, and facility improvements in 2014 with unspent dollars previously appropriated in 2013 In the above circumstances, the unexpended and/or unencumbered monies lapsed into individual fund balances at the end of 2013 and reflect no change in Council policies. Monies re-appropriated for each City fund by this Ordinance are as follows: General Fund $ 898,805 Data & Communications Fund $ 300,000 Keep Fort Collins Great Fund $ 440,912 Light & Power Fund $ 230,183 Transportation Fund $ 96,000 STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION GENERAL FUND Communications and Public Involvement Office 1. Fort Collins Public Access Network (FC PAN) - $52,185 In 2014, the Fort Collins Public Access Network (FC PAN) will relocate its production office and studio space to the Carnegie Building. Funds are needed to complete this move and provide necessary equipment for the new Packet Pg. 62 Attachment5.1: Copy of First Reading of Agenda Item Summary, April 1, 2014 (w/o attachments) (SR 051 - Appropriating Prior Year Reserves) Agenda Item 8 Item # 8 Page 2 community studio. Through an agreement with Comcast, subscribers pay a monthly Public, Education and Government (PEG) fee that partially funds equipment needs for the City, Poudre School District, Colorado State University and FC PAN. In anticipation of the move to a new facility, for the past few years FC PAN has been saving a portion of their $15,000 annual allocation in reserves. The funds were appropriated in 2013 and now that the move is imminent, the funds need to be re-appropriated so FCPAN can complete this project in full. PEG funds are restricted by the Federal Government and can only be used for capital equipment and infrastructure by the PEG entities. 2. Comcast Negotiations - $52,000 These funds are for continued cable franchise consultation and legal fees during negotiations between the City and Comcast. The current cable franchise expires in March of 2015. The City will enter into negotiations in the summer of 2014 with the expectation to have a new cable franchise in place before the current one expires. This work is ongoing through those negotiations. The current funds were not fully expended because of the multi-year nature of this commitment. Economic Health 3. Foothills Metropolitan District - $13,750 Any entity wishing to form a Metropolitan District in the City of Fort Collins must submit a $13,750 deposit at the time City Council considers the associated service plan. This deposit is intended to offset the legal costs incurred by the City during the formation process. Alberta Development submitted these funds, per the 2008 adopted policy regarding Metro District formation, in 2012. The funds are related to the formation of a Metropolitan District at the Foothills Mall redevelopment. The initial service plan was a skeleton only, additional costs are anticipated, hence the carry-over. No payments were required in 2013. Funding is requested to carry forward for any payments due in 2014. These funds will be carried until after bonds are issued by the metro district, which is planned to occur in 2014. Environmental Services 4. Air Quality Programs - $17,215 The re-appropriated funds will be used to provide continued support of the clean air programs including: increase outreach and education on woodstoves and backyard burning; increase the reach of lawnmower rebate program and expand to other types of lawn equipment; provide funding for an hourly program assistant or intern; and, purchase safety equipment and air monitoring equipment. The funds were not fully expended as anticipated because the staff leading the program was not able to dedicate the expected amount of time to developing the air quality programs as originally planned. 60% of the person’s time was dedicated to an unanticipated project (oil and gas team support) and revamping the green building program. 5. Healthy Sustainable Homes - $4,776 These funds will be used to increase the time of the half-time hourly employee who assists with Healthy Sustainable Homes Administration. This individual is critical to our outreach to the low income population, serving a crucial role in Spanish translation and volunteer scheduling. These funds were in the Sustainable Homes 2013 budget intended to produce a marketing campaign for the Healthy Sustainable Homes program. It was determined after a strategic planning session that we should not produce a full campaign until the program has been adequately staffed to handle the potential response to the campaign. 6. Air Quality Zero Interest Loans - $37,000 These funds are used to support zero interest loans for Fort Collins residents to make home improvements that will improve indoor air quality, specifically for radon mitigation, mold mitigation, and woodstove and fireplace upgrades. We would like to use the re-appropriated funds to explore options for expanding the loan program to other indoor air quality issues and for conducting more robust outreach and advertising for the loan program. Administrative changes in the loan program prevented us from processing and originating loans for part of the year. These administrative changes were required to respond to changes in state regulations of mortgage loan originators. Packet Pg. 63 Attachment5.1: Copy of First Reading of Agenda Item Summary, April 1, 2014 (w/o attachments) (SR 051 - Appropriating Prior Year Reserves) Agenda Item 8 Item # 8 Page 3 7. Green Building Program - $6,260 The re-appropriated funds will be used to support the continued development of the Green Building Program and the Green Built Environment Team including: consulting services for website visioning and design; consulting services for an in-depth review of land use and municipal codes for barriers to green building; and a program intern (hourly employee). The allocated funds were not fully expended in 2013 because qualified contractor services were not procured until July and a skilled intern was not hired until August. The project incurred some delays when the hired consultant went through a staff transition. Municipal Court 8. Court-Appointed Defense Counsel - $6,000 In June of 2013, the Municipal Judge ordered a court-appointed attorney be assigned to represent a defendant on several complex cases. The fee paid for such representation is calculated at the rate of $65/hour up to a maximum of $1,000 if the case does not go to trial or $2,000 if the case goes to trial. Three of these cases have been scheduled for jury trials. One trial was completed in 2013 and the other 2 were postponed. If all requested funds are not spent on these cases, they will be used to cover additional court-appointed defense counsel expenses in 2014. Such expenses will exceed the budgeted amount due to a change in the state law which has resulted in an increase in such appointments. Due to the complexity of and circumstances related to the defense cases involved with this appointment and the fact that dispositions have not been reached in all of the cases, the defense attorney has not yet presented the Court with a bill. We have requested that he bill us for services provided to this point and anticipate receiving this bill in the near future. Natural Areas 9. Northern Integrated Supply Project (NISP) - $76,805 Funds will be used to support analysis of the Supplemental Draft Environmental Impact Statement for the Northern Integrated Supply Project. The Supplemental Draft Environmental Impact Statement for the Northern Integrated Supply Project was delayed by the Army Corps of Engineers and publication is now expected sometime in the fall of 2014. Parks 10. Median Renovation - $245,393 Median renovation funds are one-time funding for major renovations of medians beyond the amount the Parks Division receives on an ongoing basis for small median renovations. Meetings with a stakeholder’s team consisting of various City departments took place in the spring and summer of 2013. There was much discussion on which medians to renovate and also what design standards should be used. In the fall 2013, medians for renovation were selected. A landscape design firm was hired in late 2013 and is working on the final designs after several design discussions with City staff. Weather permitting, renovations will begin in the spring of 2014, and when plant materials become available. 11. Lifecycle Funding - $44,865 Lifecycle funds are used for replacement of park infrastructure, and renovating and re-mulching medians. All of the budgeted funds were not spent in 2013 due to the transition to a new Parks Project Manager. Other staff was not available or did not have the expertise to complete these projects during the absence of the Parks Project Manager. Social Sustainability 12. Human Services Program - $6,398 The fiscal year for the Grants Program is October 1, 2013 to September 30 2014. Sub-recipients (grantees) can begin spending their funds in October for reimbursement. All funds must be spent by September (reimbursed by November) of the following year. All funds are allocated except for operations money. Unspent funds are pending contracts but are committed. Packet Pg. 64 Attachment5.1: Copy of First Reading of Agenda Item Summary, April 1, 2014 (w/o attachments) (SR 051 - Appropriating Prior Year Reserves) Agenda Item 8 Item # 8 Page 4 13. Affordable Housing - $336,158 The Affordable Housing funds are allocated during the fall cycle of the Competitive Process. Approval by City Council takes place in mid-to-late November. Often contracts are not completed before the end of the year so therefore cannot be encumbered. Homebuyer Assistance (HBA) program funds cannot be encumbered because this is a City program. Funds are allocated as needed to first time homebuyers. DATA & COMMUNICATIONS FUND Information Technology 14. VoIP Design and Implementation Support (including .5 contractual) - $300,000 Voice over Internet Protocol (VoIP) is a technology that allows telephone calls to be made over computer networks like the Internet. These funds will be used for contract and network maintenance support to complete VoIP transition. This re-appropriation includes funding for one contractual FTE for six months. (This position will be requested through the City’s usual process and the funds will be frozen until the position is approved.) The remaining contract support will be through outsourcing vendors. Construction and/or customer specific delays impacted the ability to implement VoIP at the following sites: Senior Center, all Poudre Fire Authority stations, Utilities Electric Substations, Fossil Creek, Southridge Golf Course, Gardens at Spring Creek, and Restorative Justice. These sites will be completed by mid-year 2014. KEEP FORT COLLINS GREAT FUND Community Development & Neighborhood Services 15. Design Assistance Program - $4,968 The Design Assistance Program (DAP) was recently established by Council to address compatibility issues in the Eastside and Westside Neighborhoods. By incentivizing the use of pre-qualified professionals with success in context-sensitive historic design, the DAP helps to enhance the compatibility of design, size and massing for new construction within the historic core neighborhoods, and lessen neighborhood concerns. The program became fully operational in mid-2012, and demand for funds has increased steadily. Requests were insufficient to fully utilize the amount budgeted in 2013 ($40,000). However, with the steady increase in requests received, this amount would supplement the 2014 budget available and provide additional assistance for these efforts. 16. Historic Preservation Grants - $36,110 This budget will be used to provide the required matching funds for State Historic Fund and Certified Local Government Grants. Because of the nine to ten month time lag between grant application, when the matching funds are promised, and grant award and contracting with the State, when the funds are encumbered, the budget allocated in one year will usually need to be re-appropriated for expenditure in the following year. Grants have been awarded, but funds not yet encumbered, for $9,900 for development of a context of the Westside Neighborhood’s Loomis Addition; and $1,500 for Landmark Preservation Commission members to attend the bi-annual National Alliance for Preservation Commissioners conference. Remaining re-appropriated funds and the 2014 budget will be used as follows: $23,000 towards a survey of the Westside Neighborhood’s Loomis Addition; $5,000 for the historic Carnegie Library/former Museum at 200 Mathews Street; $10,000 towards rehabilitation of the 16-unit housing project at 1544 West Oak Street; with the remainder supporting grants for Council-directed additional property survey. 17. Historic Preservation Professional Property Survey - $3,428 These funds are used for professional historic surveys, to identify properties for long range planning projects; when required for City-owned historic properties; or to provide an independent assessment when the Landmark Preservation Commission or City staff is involved in the appeal of a decision. A portion of the 2013 budget allocated for independent professional property services was expended on the survey of five Old Town Historic National Register District properties, located near the potential downtown hotel site. The remaining $3,428 requested will be spent on the survey and documentation of additional historic properties which will potentially be affected by this development. Packet Pg. 65 Attachment5.1: Copy of First Reading of Agenda Item Summary, April 1, 2014 (w/o attachments) (SR 051 - Appropriating Prior Year Reserves) Agenda Item 8 Item # 8 Page 5 18. Landmark Rehabilitation Program - $17,902 These funds will be used for owners who have been given landmark rehabilitation loan awards but have not yet completed their work, as well as to fund additional loan awards. Recipients of Landmark Rehabilitation Loans have two years in which to complete the work and request reimbursement. These loans, which require a minimum of an equal match of owner funds, have generated over $3 million dollars in rehabilitation work since 1995. In 2013, 11 grants were awarded; four additional loans have been awarded so far in 2014. 19. Lincoln Corridor - $6,344 The Lincoln Corridor project is nearing completion. Throughout 2013, extensive public outreach and visioning processes were employed to develop a community supported vision and preliminary design. The resulting strategic plan will include an assessment and analysis of existing information including land use, transportation, urban design, open lands and provide recommendations on potential improvements in the area. The recommendations from the plan will help strengthen and revitalize a variety of unique commercial, industrial and residential properties. The project advances a plan for Lincoln Avenue and the surrounding neighborhoods as a crucial link between downtown Fort Collins and the East Mulberry Corridor, allowing it to serve as a catalyst for economic development and growth in the area. These remaining funds are needed to cover expenses required to complete this work. 20. Oil and Gas - $21,801 Staff spent the majority of 2013 developing policy on this issue, securing an operator agreement, and navigating a community election and related legal activities. A moratorium is now in place for all hydraulic fracturing within the City of Fort Collins and will remain in place for up to five years. This moratorium stops the current operator from using hydraulic fracturing to enhance existing wells or to drill new ones. Staff continues to work with legal staff on how best to comply with the ballot measure that was passed by voters. In the interim, air quality monitoring services are underway. Equipment has been purchased and contractor services are underway. Remaining funds will be used for groundwater quality work. 21. West Central Neighborhood Plan - $135,500 This project was put on hold in 2013 due to possible fatigue of the Community due to efforts related to the Student Housing Action Plan (SHAP) and the Eastside/Westside Character Study, as well as to allow additional time for collaboration with Colorado State University on the new stadium proposal and other efforts. The scope of this plan update has now been revised and it has been renamed the West Central Area (Neighborhoods) Plan. It includes a significant transportation component in addition to the traditional sub-area plan components. A project team has been formed and the scope for a Request for Proposal is approaching the final draft stage. The project team is working on task analysis preparing staff resources. The public outreach program and triple bottom line analysis continue to be a work in progress. Staff requests re- appropriation of this funding to complete the project. Economic Health 22. Gig U Project - $20,000 This is intended to fund the exploration and evaluation of providing enhanced broadband capacity in the City of Fort Collins. The Gig U project scope underwent significant revisions in 2013. These revisions included evaluating the possibility of having the City of Fort Collins Utilities become a broadband provider. As a result, the project did not begin until 2014. Thus, the unexpended funds from last year are required to support the project in 2014. Environmental Services 23. Road to Zero Waste - $24,283 A portion of the 2013 Road to Zero Waste funding was planned to support construction and demolition (C&D) debris recycling. This funding will be used to cover a portion of the costs of the Integrated Recycling Facility which will offer recycling of several C&D materials when it opens. In 2013, opportunities to support local builders in complying with 2012 Green Building Code requirements for on-site recycling were explored, but direct avenues for spending the funding were not readily available. Packet Pg. 66 Attachment5.1: Copy of First Reading of Agenda Item Summary, April 1, 2014 (w/o attachments) (SR 051 - Appropriating Prior Year Reserves) Agenda Item 8 Item # 8 Page 6 24. Climate Adaptation - $2,799 These funds will be used to support further adaptation planning efforts for City staff. This will be in the form of supporting registration and travel fees for staff to participate in a peer learning workshop this spring with the Western Adaptation Alliance. This Alliance provides opportunities for 13 regional intermountain west communities to come together and learn adaptation best management practices, increase the productivity of dialogue across departments and network with other regional partners. The 2013 budget included funding for two of these workshops for staff, but only one was offered. These funds will provide the peer learning workshop opportunity for staff in 2014. 25. Sustainability Innovation Fund - $5,589 The 2013 Innovation Fund was awarded competitively to nine employee-proposed projects that advance the City’s sustainability goals. Some of the nine project managers were unable to complete their projects within 2013 for various reasons. The re-appropriated funds comprise about 6% of the Innovation Fund and will complete projects that were unfinished at year’s end. 26. Environmental Web Portal - $25,000 In July 2013, a new environmental web portal launched, offering one-stop-shop information about the City’s environmental resources and services (see fcgov.com/enviro). Part of the unspent funding is requested to be rolled over to revise the site following usability testing, then to increase outreach for the site, and to develop and implement an environmental sustainability engagement campaign in 2014. The planned usability testing and subsequent site modification was not conducted in 2013 because the opportunity to substantially modify the site is restricted until after the fcgov.com overhaul is completed. This was originally anticipated for 2013 and now is anticipated for 2014. In addition, the Purchasing Department was able to modify their web page and develop a tracking mechanism for sustainable purchasing using existing resources. Natural Areas 27. Instream Flows and Ecosystem Response Model - $90,053 The purpose of the instream flow project ($20,000) is to conduct engineering, legal, and administrative research as well as to implement actions to help create instream flows on the Poudre River. In 2013, instream flow efforts were delayed because the City’s water engineering firm was not able to begin its work until late in the year (in part due to other pressing City priorities). The Poudre River Ecosystem Response Model ($70,053) is to develop a scientific model to help the community understand the ecology of the Poudre River and to evaluate the impacts that may result from changes in the river ecosystem. These funds will be used to complete each of these projects. Parks 28. Lifecycle Funding - $47,135 Lifecycle funds are used for replacement of park infrastructure, and renovating and re-mulching medians. All of the budgeted funds were not spent in 2013 due to the transition to a new Parks Project Manager. Other staff was not available or did not have the expertise to complete these projects during the absence of the Parks Project Manager. LIGHT & POWER FUND 29. Solar Garden - $230,183 The Solar Garden was budgeted for $250,000 in both 2013 and 2014. Development of the project, vendor selection and contract negotiations were not completed in 2013. The project which is for the customer rebate portion of a solar garden is on track for completion in 2014. Packet Pg. 67 Attachment5.1: Copy of First Reading of Agenda Item Summary, April 1, 2014 (w/o attachments) (SR 051 - Appropriating Prior Year Reserves) Agenda Item 8 Item # 8 Page 7 TRANSPORTATION FUND Parking 30. Civic Center Garage Major Maintenance - $96,000 These funds were identified for major maintenance projects in the Civic Center Parking Garage. Due to unexpected damage that occurred in the garage early in 2013, projects were on hold until an engineering consultant completed a condition assessment and structural analysis. The condition assessment was completed in the fall 2013, the structural analysis in January 2014, and the necessary work has now been identified and prioritized. These funds are needed to complete the projects identified by the consultant. FINANCIAL / ECONOMIC IMPACT This Ordinance increases 2014 appropriations by $1,965,900. A total of $898,805 is requested for re- appropriation in the General Fund and $1,067,095 is requested from various other City funds. Re- appropriation requests represent amounts budgeted in 2013 that could not be encumbered at year-end. The appropriations are from 2013 prior year reserves. Packet Pg. 68 Attachment5.1: Copy of First Reading of Agenda Item Summary, April 1, 2014 (w/o attachments) (SR 051 - Appropriating Prior Year Reserves) - 1 - ORDINANCE NO. 051, 2014 OF THE COUNCIL OF THE CITY OF FORT COLLINS REAPPROPRIATING FUNDS PREVIOUSLY APPROPRIATED IN 2013 BUT NOT EXPENDED OR ENCUMBERED IN 2013 PRIOR YEAR RESERVES FOR LAPSED EXPENDITURES AUTHORIZED IN 2013 WHEREAS, City Council authorized expenditures in 2013 for various purposes in the General Fund, Data & Communications Fund, Keep Fort Collins Great Fund, Light & Power Fund, and Transportation Fund, a portion of which were not spent or encumbered in 2013; and WHEREAS, Article V, Section 11 of the City Charter requires that all appropriations unexpended or unencumbered at the end of the fiscal year lapse to the applicable general or special fund, except that appropriations for capital projects and federal or state grants do not lapse until the completion of the capital project or until the expiration of the federal or state grant; and WHEREAS, Article V, Section 9, of the City Charter permits the City Council to appropriate by ordinance at any time during the fiscal year such funds for expenditure as may be available from reserves accumulated in prior years, notwithstanding that such reserves were not previously appropriated; and WHEREAS, it is in the best interests of the City and its residents to re-appropriate funds for the expenditures below, in furtherance of these expenditures authorized in 2013 for which appropriated funds were not encumbered during 2013. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That there is hereby appropriated for expenditure from prior year reserves in the General Fund the sum of EIGHT HUNDRED NINETY-EIGHT THOUSAND EIGHT HUNDRED FIVE DOLLARS ($898,805) for the following purposes: Fort Collins Public Access Network $ 52,185 Comcast Negotiations 52,000 Foothills Metropolitan District 13,750 Air Quality Programs 17,215 Healthy Sustainable Homes 4,776 Air Quality Zero Interest Loans 37,000 Green Building Program 6,260 Court-Appointed Defense Council 6,000 Northern Integrated Supply Project 76,805 Median Renovation 245,393 Lifecycle Funding - Parks 44,865 Human Service Program 6,398 Affordable Housing 336,158 Total General Fund $898,805 Packet Pg. 69 - 2 - Section 2. That there is hereby appropriated for expenditure from prior year reserves in the Data and Communications Fund the sum of THREE HUNDRED THOUSAND DOLLARS ($300,000) for VoIP Design and Implementation Support. Section 3. That there is hereby appropriated for expenditure from prior year reserves in the Keep Fort Collins Great Fund the sum of FOUR HUNDRED FORTY THOUSAND NINE HUNDRED TWELVE DOLLARS ($440,912) for the following purposes: Design Assistance Program $ 4,968 Historic Preservation Grants 36,110 Historic Preservation Professional Property Survey 3,428 Landmark Rehabilitation Program 17,902 Lincoln Corridor 6,344 Oil and Gas 21,801 West Central Neighborhood Plan 135,500 Gig U Project 20,000 Road to Zero Waste 24,283 Climate Adaptation 2,799 Sustainability Innovation Fund 5,589 Environmental Web Portal 25,000 Instream Flows and Ecosystem Response Model 90,053 Lifecycle Funding - Parks 47,135 Total Keep Fort Collins Great Fund $440,912 Section 4. That there is hereby appropriated for expenditure from prior year reserves in the Light and Power Fund the sum of TWO HUNDRED THIRTY THOUSAND ONE HUNDRED EIGHTY-THREE DOLLARS ($230,183) to be used to complete Solar Garden project. Section 5. That there is hereby appropriated for expenditure from prior year reserves in the Transportation Fund the sum of NINETY-SIX THOUSAND DOLLARS ($96,000) to be used for the Civic Center Garage Major Maintenance projects. Packet Pg. 70 - 3 - Introduced, considered favorably on first reading, and ordered published this 1st day of April, A.D. 2014, and to be presented for final passage on the 15th day of April, A.D. 2014. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 15th day of April, A.D. 2014. __________________________________ Mayor ATTEST: _______________________________ City Clerk Packet Pg. 71 Agenda Item 10 Item # 10 Page 1 AGENDA ITEM SUMMARY April 1, 2014 City Council STAFF Tyler Siegmund, Civil Engineer SUBJECT First Reading of Ordinance No. 053, 2014, Vacating a Portion of Plum Street Right-of-Way as Dedicated on the Dechairo Subdivision Plat. EXECUTIVE SUMMARY The purpose of this item is to vacate a portion of Plum Street right-of-way that is no longer necessary or desirable to retain for public street purposes. The property owner adjacent to this portion of right-of-way is requesting the vacation. This location is the future site of the Scott Plaza development project, which was approved at the Planning and Zoning Board Public Hearing on January 9, 2014. STAFF RECOMMENDATION Staff recommends the adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION In 2007 additional right-of-way was dedicated to the City along Plum Street on the Dechairo Subdivision plat. With the Scott Plaza development plan, the applicant has proposed a mixed use development project at this location and it has been determined that the additional right-of-way is no longer needed for public street purposes. The applicant has ownership of the adjacent land. All public and private utilities were notified of the proposed vacation and they report no objections to the vacation request. FINANCIAL / ECONOMIC IMPACT There are no financial impacts to the vacation of this portion of right of way. ENVIRONMENTAL IMPACTS There are no environmental impacts to the vacation of this portion of right of way. PUBLIC OUTREACH A memorandum requesting input was sent to the utility providers and potentially impacted City departments. The adjacent property owner and the person requesting the vacation are one in the same and thus no letters were sent to adjacent property owners. ATTACHMENTS 1. Location map (PDF) Packet Pg. 73 Attachment6.1: Copy of First Reading Agenda Item Summary, April 1, 2014 (SR 053 Plum Street Right-of-Way Vacation) - 1 - ORDINANCE NO. 053, 2014 OF THE COUNCIL OF THE CITY OF FORT COLLINS VACATING A PORTION OF PLUM STREET RIGHT-OF-WAY AS DEDICATED ON THE DECHAIRO SUBDIVISION PLAT WHEREAS, the plat of Dechairo Subdivision included the dedication to the public of right-of-way for Plum Street; and WHEREAS, Scott Plaza, LLC has requested that the City vacate a portion of this right- of-way; and WHEREAS, said portion of right-of-way is no longer necessary or desirable to retain for street purposes; and WHEREAS, pertinent land owners, City agencies, and private utility companies have been contacted and have reported no objection to the proposed vacation; and WHEREAS, the right of the residents of the City will not be prejudiced or injured by the vacation of said street right-of-way. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that the portion of Plum Street right-of-way more particularly described on Exhibit "A", attached hereto and incorporated herein by this reference, is hereby vacated, abated and abolished; provided, however, that: 1) this vacation shall not take effect until this Ordinance is recorded by the City Clerk with the Larimer County Clerk and Recorder; and 2) this Ordinance shall be recorded by the City Clerk concurrently with the recording of the subdivision plat for the development known as “Scott Plaza”; and 3) if this Ordinance is not so recorded by January 9, 2017, then this Ordinance shall become null and void and of no force and effect. Introduced, considered favorably on first reading, and ordered published this 1st day of April, A.D. 2014, and to be presented for final passage on the 15th day of April, A.D. 2014. __________________________________ Mayor ATTEST: _______________________________ City Clerk Packet Pg. 74 Attachment6.2: Ordinance No. 053, 2014 (SR 053 Plum Street Right-of-Way Vacation) - 2 - Passed and adopted on final reading on the 15th day of April, A.D. 2014. __________________________________ Mayor ATTEST: _______________________________ City Clerk Packet Pg. 75 Attachment6.2: Ordinance No. 053, 2014 (SR 053 Plum Street Right-of-Way Vacation) Packet Pg. 76 Attachment6.2: Ordinance No. 053, 2014 (SR 053 Plum Street Right-of-Way Vacation) Packet Pg. 77 Attachment6.2: Ordinance No. 053, 2014 (SR 053 Plum Street Right-of-Way Vacation) Agenda Item 7 Item # 7 Page 1 AGENDA ITEM SUMMARY April 15, 2014 City Council STAFF Kathleen Lane, Municipal Judge SUBJECT Second Reading of Ordinance No. 054, 2014, Appropriating Prior Year Reserves in the General Fund for Municipal Court Reorganization. EXECUTIVE SUMMARY This Ordinance, unanimously adopted on First Reading on April 1, 2014, authorizes funding of $55,400 for a minor reorganization of the Municipal Court department. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. Copy of First Reading Item Agenda Summary, April 1, 2014 (w/o attachments) (PDF) 2. Ordinance No. 054, 2014 (PDF) Packet Pg. 78 Agenda Item 15 Item # 15 Page 1 AGENDA ITEM SUMMARY April 1, 2014 City Council STAFF Kathleen Lane, Municipal Judge SUBJECT First Reading of Ordinance No. 054, 2014, Appropriating Prior Year Reserves in the General Fund for Municipal Court Reorganization. EXECUTIVE SUMMARY The purpose of this item is to authorize and appropriate funding for a relatively minor reorganization of the Municipal Court department. The Court requests $55,400 from the General Fund Reserves to cover the prorated cost of a net 1.45 increase in classified/unclassified FTE. This cost relates to three changes which are not included in the approved 2014 budget: converting an existing 0.50 FTE Bailiff position from hourly to classified status, increasing an existing 0.30 FTE classified Deputy Court Clerk II position to a 0.50 FTE, and adding a 0.75 FTE classified position of Court Security Officer. The changes are needed due to case load changes and security concerns. The cost of the changes is anticipated to be covered by a recent increase in the amount of the court cost assessed in appropriate cases. The changes were included in the Municipal Court reorganization plan which was recently approved by the City Manager’s Office. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION The Municipal Court adjudicates traffic, misdemeanor, and civil infraction complaints. In 2013, the Municipal Court processed approximately 33,000 cases to completion: 17,000 general cases and 16,000 camera radar/red light cases. Currently, the Municipal Court organization includes the following personnel who handle the general case load: Position Classified/ Unclassified FTE Hourly FTE Total Municipal Court Judge 0.80 0.80 Court Administrator 1.00 1.00 Deputy Court Clerk II 1.30 1.30 Deputy Court Clerk I 2.50 0.50 3.00 Bailiff 0.50 0.50 Total 5.60 1.00 6.60 Additionally, the Court has 1.0 FTE of contractual and hourly Court Clerks who handle the Camera Radar/Red Light cases as well as an hourly Associate Judge and two Referees who are used as needed. The 2013-2014 approved Municipal Court budget includes funding for a security service contract providing an armed security officer to monitor the courtroom, clerks’ office, front lobby, hallways, prosecutors’ offices, and the defendants’ waiting areas. Packet Pg. 79 Attachment7.1: Copy of First Reading Item Agenda Summary, April 1, 2014 (w/o attachments) (SR 054 Municipal Court Reorganizaiton Agenda Item 15 Item # 15 Page 2 Proposed Changes and Justification: The Municipal Court requests a net 1.45 increase in classified/unclassified FTE. The following three changes are proposed for the Municipal Court organizational structure: 1. Convert an existing 0.50 FTE Bailiff position from hourly to classified status. In addition to acting as Bailiff for all Court proceedings, the Bailiff provides clerical support for the Deputy Court Clerks. This allows the Clerks to focus on providing customer service to citizens appearing in the office or making inquiries by phone or mail. The Municipal Court case load has increased significantly over the past several years, creating the need to increase the hours worked by the Bailiff. The Bailiff now consistently works between forty (40) and fifty (50) hours per pay period. As the population of the City increases, the Court anticipates that the case load will either maintain its current level or increase; therefore the workload for this position will continue or increase, as well. In order to maintain fairness and equity with other positions in the office, it is time to change this position from an hourly status (no benefits) to a classified 0.50 FTE status. 2. Increase an existing 0.30 FTE classified Deputy Court Clerk II position to 0.50 FTE. In December 2012, Municipal Court staffing changed following the retirement of the Municipal Court Supervisor. While no net change in FTE occurred at that time, it resulted in a classified Deputy Court Clerk II position of only 0.30 FTE. Unfortunately, a position of that size can only be filled by an hourly employee. Current workload has created the need to increase that position to 0.50 FTE to help with some of the complex case processing and financial work which must be done daily. Without additional support, the Court Administrator will have less time to devote to staff development, work on statistical reports, and initiating innovative processes. 3. Add a 0.75 FTE classified Court Security Officer position. The Municipal Court has completed two security assessments within the past three years, both of which identified a number of concerns and suggested changes. One of the suggestions was to have a security officer present. Since February 2013, the Court has contracted with Vets Securing America for a POST-certified security officer during arraignment sessions. Due to the reduction in incidents and some additional security concerns during non-arraignment time-frames, we have expanded the use of this service to include hearings, trials, and jury trials. In order to ensure consistency in personnel, training, and services provided, we now recommend the creation of a classified position of Court Security Officer. Fort Collins Police Services has agreed to provide a limited commission and work with the Court on training requirements for this Security Officer. Budget: The increased personnel expenses related to this reorganization are not currently funded in the Court’s 2014 budget. The costs involved would be as follows: 1. The incremental cost of changing the status of the Bailiff position from hourly to classified is approximately $13,308 per year. 2. The incremental cost of increasing the Deputy Court Clerk II classified position from 0.30 to 0.50 FTE is approximately $15,484 per year. 3. The proposed salary for the classified 0.75 FTE Court Security Officer is equivalent to that of a Natural Areas Trail Ranger, Park Ranger, and Transit Services Officer. The Court would also need approximately $3,100 additional funds for purchasing uniforms and safety equipment for the Officer. Currently, the Court has a small budget for security services: $11,750 for 2014; with that offset, the incremental cost of the change described in this Ordinance is $45,065. The Court is requesting that its departmental budget for 2014 be increased by a pro-rated total of $55,400 (relating to an effective date of April 2014). Should the funding for the aforementioned changes be approved, the Municipal Court’s organizational structure (for the general caseload) will be as follows: Packet Pg. 80 Attachment7.1: Copy of First Reading Item Agenda Summary, April 1, 2014 (w/o attachments) (SR 054 Municipal Court Reorganizaiton Agenda Item 15 Item # 15 Page 3 Position Classified/ Unclassified FTE Hourly FTE Total Municipal Court Judge 0.80 0.80 Court Administrator 1.00 1.00 Deputy Court Clerk II 1.50 1.50 Deputy Court Clerk I 2.50 0.50 3.00 Bailiff 0.50 0.50 Court Security Officer 0.75 0.75 Total 7.05 0.50 7.55 FINANCIAL / ECONOMIC IMPACT In anticipation of this increased expense, City Council adopted Resolution 2014-012, revising the Court’s costs and fees, including an increase in the “court cost” collected on appropriate cases from $25 to $35 per case. This increase was effective February 18, 2014 and is estimated to yield approx. $57,000 additional revenue in 2014. Consequently, the cost of the reorganization should be covered by the increased costs revenue. ATTACHMENTS 1. Powerpoint presentation (PDF) Packet Pg. 81 Attachment7.1: Copy of First Reading Item Agenda Summary, April 1, 2014 (w/o attachments) (SR 054 Municipal Court Reorganizaiton - 1 - ORDINANCE NO. 054, 2014 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING PRIOR YEAR RESERVES IN THE GENERAL FUND FOR MUNICIPAL COURT REORGANIZATION WHEREAS, the Municipal Court (the “Court”) adjudicates traffic, misdemeanor, and civil infraction complaints pursuant to the Fort Collins Municipal Code, and handles approximately 33,000 cases annually; and WHEREAS, the Court recently developed a plan for reorganization as a result of significantly increased caseloads that have resulted in the need for additional assistance for complex case processing, financial work, customer service, statistical report generation duties, and staff development; and WHEREAS, two security assessments in the past three years identified a need for a security officer to be present in the courtroom during both arraignment and non-arraignment sessions, hearings, trials, and jury trials; and WHEREAS, the Court’s reorganization will result in a net increase of 1.45 in classified/unclassified full-time employees (FTE), comprised of 0.50 FTE for a Bailiff position, 0.20 FTE for a Deputy Court Clerk II, and 0.75 for a Court Security Officer; and WHEREAS, as part of the reorganization, the Court is requesting $55,400 from prior year reserves in the General Fund to cover the prorated cost of the net increase in FTE; and WHEREAS, the increased personnel expenses for the reorganization are not currently funded in the Court’s 2014 operational budget; and WHEREAS, Article V, Section 9, of the City Charter permits the City Council to appropriate by ordinance at any time during the fiscal year such funds for expenditure as may be available from reserves accumulated in prior years, notwithstanding that such reserves were not previously appropriated; and NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that there is hereby appropriated for expenditure from prior year reserves in the General Fund the sum of FIFTY FIVE THOUSAND AND FOUR HUNDRED DOLLARS ($55,400) to fund the costs associated with the Municipal Court’s reorganization. Packet Pg. 82 Attachment7.2: Ordinance No. 054, 2014 (SR 054 Municipal Court Reorganizaiton Appropriation) - 2 - Introduced, considered favorably on first reading, and ordered published this 1st day of April, A.D. 2014, and to be presented for final passage on the 15th day of April, A.D. 2014. _________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on the 15th day of April, A.D. 2014. _________________________________ Mayor ATTEST: _____________________________ City Clerk Packet Pg. 83 Attachment7.2: Ordinance No. 054, 2014 (SR 054 Municipal Court Reorganizaiton Appropriation) Agenda Item 8 Item # 8 Page 1 AGENDA ITEM SUMMARY April 15, 2014 City Council STAFF Kathleen Lane, Municipal Judge SUBJECT Items Relating to Municipal Court Fines and Penalties. EXECUTIVE SUMMARY A. Second Reading of Ordinance No. 055, 2014, Amending Section 19-4 of the City Code Regarding the Failure to Pay Fine or Penalty. B. Second Reading of Ordinance No. 056, 2014, Amending Section 19-62 of the City Code Pertaining to the Handling of Civil Infractions and Misdemeanor Offenses. Ordinance No. 055, 2014, amends the City Code to remove the specific dollar amount of credit a prisoner receives for jail served on failure to pay cases and, instead, specifies that said amount will be listed in the Schedule of Fines established by the Municipal Judge. This allows the Municipal Judge to periodically adjust that amount as appropriate. Ordinance No. 056, 2014, amends the City Code to indicate that if an incident gives rise to charges which would normally be filed as a civil infraction and a misdemeanor, the charges are to be handled together as a misdemeanor case. This avoids the time and confusion of having two separate tickets filed with the Court, with separate procedures and costs relating to each. These Ordinances were unanimously adopted on First Reading on April 1, 2014. STAFF RECOMMENDATION Staff recommends adoption of the Ordinances on Second Reading. ATTACHMENTS 1. Copy of First Reading Agenda Item Summary, April 1, 2014 (PDF) 2. Ordinance No. 055, 2014 (PDF) 3. Ordinance No. 056, 2014 (PDF) Packet Pg. 84 Agenda Item 16 Item # 16 Page 1 AGENDA ITEM SUMMARY April 1, 2014 City Council STAFF Kathleen Lane, Municipal Judge SUBJECT Items Relating to the Fort Collins Municipal Court. EXECUTIVE SUMMARY A. First Reading of Ordinance No. 055, 2014, Amending Section 19-4 of the City Code Regarding the Failure to Pay Fine or Penalty. B. First Reading of Ordinance No. 056, 2014, Amending Section 19-62 of the City Code Pertaining to the Handling of Civil Infractions and Misdemeanor Offenses. The purpose of this item is to codify certain changes in the judicial process to improve fairness and efficiency. Ordinance No. 055, 2014, amends the City Code to remove the specific dollar amount of credit a prisoner receives for jail served on failure to pay cases and, instead, specifies that said amount will be listed in the Schedule of Fines established by the Municipal Judge. This allows the Municipal Judge to periodically adjust that amount as appropriate. Ordinance No. 056, 2014, amends the City Code to indicate that if an incident gives rise to charges which would normally be filed as a civil infraction and a misdemeanor, the charges are to be handled together as a misdemeanor case. This avoids the time and confusion of having two separate tickets filed with the Court, with separate procedures and costs relating to each. STAFF RECOMMENDATION Staff recommends adoption of the Ordinances on First Reading. BACKGROUND / DISCUSSION A. First Reading of Ordinance No. 055, 2014, Amending Section 19-4 of the City Code Regarding the Failure to Pay Fine or Penalty. This item amends the City Code to remove the specific dollar amount of credit a prisoner receives for jail served on failure to pay cases. This amount had been listed in the Code as $6.00 per day and had not been adjusted for years. Out of fairness, the Judge has been giving defendants credit for more than that amount; $50 credit for each day of jail served has been given for the last several years. In order to provide flexibility in adjusting this credited amount as appropriate, the proposed ordinance removes the dollar amount and, instead, specifies that said amount will be listed in the Schedule of Fines established by the Municipal Judge. B. First Reading of Ordinance No. 056, 2014, Amending Section 19-62 of the City Code Pertaining to the Handling of Civil Infractions and Misdemeanor Offenses. This item amends the City Code to indicate that if an incident gives rise to two (or more) charges which would normally be filed separately as a civil infraction and a misdemeanor, the charges are to be handled together as a misdemeanor case. This changes the current practice of enforcement officers having to issue two separate tickets in cases such as those involving an Animal at Large charge, as well as a Dangerous Animal charge. In those cases, defendants are currently faced with the potential of paying two sets of costs and having separate Packet Pg. 85 Attachment8.1: Copy of First Reading Agenda Item Summary, April 1, 2014 (SR 055-056 Municipal Court Fines and Penalties) Agenda Item 16 Item # 16 Page 2 hearings if they choose. The current practice has also increased the time spent by the Court to administer and hear these cases. This change will streamline the process for all involved and avoid the confusion which often arises from having two separate tickets relating to the same incident. The proposed change is consistent with how traffic cases are handled under City Code Section 19-45. FINANCIAL / ECONOMIC IMPACT There is no financial impact from the first item. As to the second item, there is a minimal impact since there are very few cases that will be affected. For those few cases, enforcement officers will only have to issue one ticket instead of two, defendants who plead or are found guilty will pay costs on one case instead of two, and the Court will have one trial on contested cases instead of potentially a referee hearing as well as a trial relating to the same incident. ATTACHMENTS 1. Powerpoint presentation (PDF) Packet Pg. 86 Attachment8.1: Copy of First Reading Agenda Item Summary, April 1, 2014 (SR 055-056 Municipal Court Fines and Penalties) - 1 - ORDINANCE NO. 055, 2014 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING SECTION 19-4 OF THE CODE OF THE CITY OF FORT COLLINS REGARDING THE FAILURE TO PAY FINE OR PENALTY WHEREAS, under Section 19-4(a) of the City Code, any person against whom a fine or penalty is assessed by the Municipal Court for a violation of a misdemeanor offense who refuses or neglects to pay the fine or penalty or who violates any condition placed thereon by the Municipal Judge may be imprisoned for such refusal, neglect or violation; and WHEREAS, Section 19-4(b) of the City Code currently sets the rate at which such person would be credited for time served, which rate is currently six dollars per day served; and WHEREAS, such rate has not been adjusted over the years to take into consideration the increased amount of fines and penalties imposed for misdemeanor violations; and WHEREAS, entrusting the Municipal Judge to periodically determine the rate based on the fine amounts for various offenses provides the discretion to efficiently and fairly establish the rate and provides for publication of the rate through the Municipal Court schedule of fines. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that Section 19-4 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 19-4. Failure to pay fine or penalty. (a) Any person against whom a fine or penalty is assessed by the Municipal Court for a violation of a misdemeanor offense who refuses or neglects to pay the fine or penalty or who violates any condition placed thereon by the Municipal Judge may be imprisoned for such refusal, neglect or violation. (b) A person imprisoned for refusing or neglecting to pay such fine or penalty shall be credited at a rate established by the Municipal Judge in the Municipal Court Schedule of Fines. Packet Pg. 87 Attachment8.2: Ordinance No. 055, 2014 (SR 055-056 Municipal Court Fines and Penalties) - 2 - Introduced, considered favorably on first reading, and ordered published this 1st day of April, A.D. 2014, and to be presented for final passage on the 15th day of April, A.D. 2014. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 15th day of April, A.D. 2014. __________________________________ Mayor ATTEST: _______________________________ City Clerk Packet Pg. 88 Attachment8.2: Ordinance No. 055, 2014 (SR 055-056 Municipal Court Fines and Penalties) - 1 - ORDINANCE NO. 056, 2014 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING SECTION 19-62 OF THE CODE OF THE CITY OF FORT COLLINS PERTAINING TO THE HANDLING OF CIVIL INFRACTIONS AND MISDEMEANOR OFFENSES WHEREAS, on February 19, 2013, the City Council adopted Ordinance No. 021, 2013, amending Chapter 4 of the City Code, which decriminalized certain minor offenses related to the care and keeping of animals, making those offenses civil infractions instead of criminal misdemeanors; and WHEREAS, the more serious offenses relating to the care and keeping of animals remained misdemeanors; and WHEREAS, under the current City Code, when one incident involves offenses constituting both a misdemeanor and a civil infraction, officers must write two separate citations, potentially subjecting the defendant and the City to two separate judicial proceedings; and WHEREAS, City staff has recommended, and the City Council agrees, that civil infractions and misdemeanors arising out of one incident should be governed by the rules and statutes applicable to misdemeanor offenses. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that Section 19-62 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 19-62. Scope, purpose, and application. a. These rules are promulgated pursuant to Article VII of the Charter to govern practice and procedures for the handling of civil infractions. The purpose of these rules is to provide for the orderly, expeditious and fair disposition of such infractions. b. In any action in which the commission of a civil infraction and a misdemeanor offense are alleged in one (1) complaint, the action shall be treated as one (1) proceeding governed by the rules and statutes applicable to the alleged misdemeanor offense. Packet Pg. 89 Attachment8.3: Ordinance No. 056, 2014 (SR 055-056 Municipal Court Fines and Penalties) - 2 - Introduced, considered favorably on first reading, and ordered published this 1st day of April, A.D. 2014, and to be presented for final passage on the 15th day of April, A.D. 2014. _________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on the 15th day of April, A.D. 2014. _________________________________ Mayor ATTEST: _____________________________ City Clerk Packet Pg. 90 Attachment8.3: Ordinance No. 056, 2014 (SR 055-056 Municipal Court Fines and Penalties) Agenda Item 9 Item # 9 Page 1 AGENDA ITEM SUMMARY April 15, 2014 City Council STAFF Karen McWilliams, Historic Preservation Planner SUBJECT Items Relating to Historic Preservation. EXECUTIVE SUMMARY A. Second Reading of Ordinance No. 057, 2014, Amending Chapter 14 of the City Code Regarding Landmark Preservation. B. Second Reading of Ordinance No. 058, 2014, Amending Section 2-278 of the City Code Pertaining to the Functions of the Landmark Preservation Commission. C. Second Reading of Ordinance No. 059, 2014, Amending Section 3.4.7 of the Land Use Code Pertaining to New Construction as it Affects Historic and Cultural Resources. These Ordinances, unanimously adopted on First Reading, on April 1, 2014, amend the City Code and the Land Use Code regarding the historic preservation program. At the April 1, 2014 Council meeting, questions were raised by Council concerning the effect of certain Code changes, principally those related to dangerous condition and imminent threat. For Second Reading, staff has revised the Code language to make the intent of these Code provisions clearer. Section 14-51 and a new Section 14-73 now state that, if the Building Official or another properly authorized public official or employee determines that a historic structure must be demolished because it presents an imminent threat to life, health or property, nothing in Chapter 14 will interfere with carrying out that order. However, if the official or employee determines that it is reasonable to repair the structure and that repairing it will make it safe, then the owner of the structure will need to comply with Chapter 14 before work is undertaken that will affect the exterior of the structure. STAFF RECOMMENDATION Staff recommends adoption of the Ordinances on Second Reading. ATTACHMENTS 1. First Reading Agenda Item Summary, April 1, 2014 (w/o attachments) (PDF) 2. Ordinance No. 057, 2014 (PDF) 3. Ordinance No. 058, 2014 (PDF) 4. Ordinance No. 059, 2014 (PDF) Packet Pg. 91 Agenda Item 17 Item # 17 Page 1 AGENDA ITEM SUMMARY April 1, 2014 City Council STAFF Karen McWilliams, Historic Preservation Planner Laurie Kadrich, Community Development & Neighborhood Services Mgr SUBJECT Items Relating to Historic Preservation. EXECUTIVE SUMMARY A. First Reading of Ordinance No. 057, 2014, Amending Chapter 14 of the City Code Regarding Landmark Preservation. B. First Reading of Ordinance No. 058, 2014, Amending Section 2-278 of the City Code Pertaining to the Functions of the Landmark Preservation Commission. C. First Reading of Ordinance No. 059, 2014, Amending Section 3.4.7 of the Land Use Code Pertaining to New Construction as it Affects Historic and Cultural Resources. The purpose of this item is to present to Council the proposed changes to Chapter 2 and Chapter 14 of the City Code and Section 3.4.7 of the Land Use Code resulting from the 2012-2013 Historic Preservation Process and Codes Improvements Study. STAFF RECOMMENDATION Staff recommends adoption of the Ordinances on First Reading. BACKGROUND / DISCUSSION In 2012 and 2013, per Council’s direction, historic preservation staff undertook a comprehensive evaluation of the City’s Historic Preservation Program to enhance its transparency, predictability, and effectiveness. Phase 1 of this review resulted in two substantive changes to the City Code, adopted in August 2012: An appeal process for determinations of eligibility, and for the determination of the effect of proposed work on this eligibility; and More specificity to Landmark Preservation Commission (LPC) member requirements, ensuring compliance with Certified Local Government (CLG) standards. Council directed that Phase 2 look more comprehensively at the various components that make up the Historic Preservation Program. Based upon direction received at Council’s August 26, 2013 Work Session (Attachment 1), staff is bringing forward revisions to both the City Code and Land Use Code (LUC) for Council’s consideration. Code revisions, (Ordinance No. 057, 2014; Ordinance No. 058, 2014; and Ordinance No. 059, 2014), to improve transparency and predictability include: Packet Pg. 92 Attachment9.1: First Reading Agenda Item Summary, April 1, 2014 (w/o attachments) (SR 057-059 Items Historic Preservation Study Code Agenda Item 17 Item # 17 Page 2 A complete re-organization of Chapter 14, “Landmark Preservation,” and the addition of explanations and references, enhancing the clarity and understanding of the Code, grouping all eligibility information together and all landmark designation information together. Previously, information was scatted throughout the Chapter; The inclusion of a building’s context as a consideration in determining eligibility. Previously, each property was looked at individually regardless of the surrounding character of the property; Having determinations remain valid for five years, rather than the current one year period; Adding a requirement that a minimum of three residents of the city must sign to submit an application for a non-consensual landmark designation. Currently, one resident can submit; Change LUC Section 3.4.7(F), “New Construction,” to better clarify the area to be considered when evaluating the compatibility of new structures, when a project involves irregular shaped parcels or land that has not been platted in a standard grid pattern; Requiring applicants to provide a Plan of Protection, showing how the applicant will ensure that no damage will occur to any historic resources on or adjacent to the site; Requiring repair, rather than demolition, of properties undergoing review under either “Landmark Preservation” or “Historic and Cultural Resources,” and which are declared dangerous by the Chief Building Officer. If a property is found to be an imminent threat by the Chief Building Officer, then an owner will have the option of repair or demolition; Providing penalties for actions that violate the protection mechanisms of the landmark Preservation Code. Code revisions to improve effectiveness and shorten review times include: Adding the ability for the Community Development and Neighborhood Services (CDNS) Director to be able to approve minor alterations on landmark properties administratively, so that permit approval may be granted within days rather than weeks; Adding the ability for the LPC Design Review Subcommittee, established by Council under Ordinance No. 002, 2011, to provide recommendations to the CDNS Director on plans it has reviewed and approved. The Director could then approve the plans administratively, without the necessity of the Subcommittee recommendation going before the full LPC for approval; Adding the ability for the LPC to review development projects affecting individually eligible and designated historic properties, and to provide a recommendation to the Decision Maker. This action would provide important information to the Decision Maker on projects subject to both historic preservation and development Code requirements. The change would also bring the City into compliance with federal CLG requirements, which recognizes the LPC as the City’s qualified historic review board; Changing the LUC review process to add non-binding determinations of eligibility, enabling potential historic resources to be identified without undue cost or delay to development applications. This is the process currently used; however, these determinations are not identified in the Code as non-binding, which has the potential to cause problems. FINANCIAL / ECONOMIC IMPACTS These Code changes provide greater predictability to the Historic Preservation Code processes, and provide for alternative review processes to facilitate project review, saving staff and the public both time and cost. BOARD / COMMISSION RECOMMENDATION At its March 12, 2014 regular meeting, the Landmark Preservation Commission unanimously (9-0) recommended approval of the Code revisions to City Codes Chapter 2, “Landmark Preservation Commission,” and Chapter 14, “Landmark Preservation” (Attachment 2). At its March 13, 2014 regular meeting, the Planning and Zoning Board unanimously (7-0) recommended approval of the Code revisions to Land Use Code Section 3.4.7, “Historic and Cultural Resources” (Attachment 3). Packet Pg. 93 Attachment9.1: First Reading Agenda Item Summary, April 1, 2014 (w/o attachments) (SR 057-059 Items Historic Preservation Study Code Agenda Item 17 Item # 17 Page 3 PUBLIC OUTREACH Board and Commission Outreach: Met with the Planning and Zoning Board at three meetings and work sessions; Met with the Landmark Preservation Commission at 12 meetings and work sessions. Citizen Outreach: Twelve-member Citizens Committee, with representation from all major stakeholders. This committee convened three times during the fall of 2012 and spring of 2013, and provided additional review through emails; Public Open House held on January 28, 2014, attended by 12 citizens; Attended three meetings of the Government Affairs Committee of the Board of Realtors, to discuss proposed Code revisions; Surveyed best practices of historic preservation programs in 22 peer communities, and compared these with Fort Collins’ program to identify strengths and weaknesses; Conducted an on-line survey of nearly 2,800 property owners and adjacent property owners who went through Demolition/Alteration Review, to assess the relevancy and effectiveness of this process. ATTACHMENTS 1. Work Session Summary, August 27, 2013 (PDF) 2. Landmark Preservation Commission minutes (draft), March 12, 2014 (PDF) 3. Planning and Zoning Board minutes (draft), March 13, 2014 (PDF) 4. Powerpoint presentation (PDF) Packet Pg. 94 Attachment9.1: First Reading Agenda Item Summary, April 1, 2014 (w/o attachments) (SR 057-059 Items Historic Preservation Study Code 1 ORDINANCE NO. 057, 2014 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 14 OF THE CODE OF THE CITY FORT COLLINS REGARDING LANDMARK PRESERVATION WHEREAS, the City Council has directed City staff to undertake a two-phase project to consider improvements to the City’s historic preservation codes and processes to make these codes and processes more transparent, predictable and effective; and WHEREAS, City staff has prepared and presented to the City Council the second phase of the work, which addresses City Council’s concerns regarding the readability of the codes, increased flexibility in applying the codes, and better notice of the City’s historic review processes and regulations to the purchasers of historic landmarked properties and properties that are eligible to become landmarks; and WHEREAS, the Landmark Preservation Commission has reviewed the proposed changes and has recommended the same to the City Council; and WHEREAS, the City Council has determined that the proposed changes are in the best interests of the citizens of the City. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That Article I of Chapter 14 of the Code of the City of Fort Collins is hereby amended to read as follows: ARTICLE I. IN GENERAL Sec. 14-1. Definitions. The following words, terms and phrases, when used in this Chapter, shall have the meanings ascribed to them in this Section: Adverse effect shall mean that a project or undertaking may alter, directly or indirectly, any of the characteristics that qualify a property for designation, either individually or as a contributing element of a district, in a manner that would diminish the property's exterior integrity. Adverse effects may include reasonably foreseeable effects caused by the undertaking that may occur later in time, be removed in distance, or be cumulative. Alteration shall mean any act or process, including relocation, which changes one (1) or more of the physical characteristics of a designated site, structure, object, or district or a site, structure, object or district eligible for designation. Packet Pg. 95 Attachment9.2: Ordinance No. 057, 2014 (SR 057-059 Items Historic Preservation Study Code Revisions) 2 Characteristics shall mean the visible and tangible attributes of a site, structure, object or district, including, but not limited to, the architectural design, style, general arrangement and components of all the outer surfaces of a site, object, structure or improvement, including, but not limited to, the color, texture, materials, type and style of all windows, doors, lights, signs and other fixtures appurtenant to said site, object, structure or improvement. Commission shall mean the Landmark Preservation Commission created in § 2-276. Compatible shall mean the characteristics of different uses or activities or design which allow them to be located near or adjacent to each other in harmony. Some elements affecting compatibility include height, scale, mass and bulk of structures. Other characteristics include pedestrian or vehicular traffic, circulation, access and parking impacts. Other important characteristics that affect compatibility are landscaping, lighting, noise, odor and architecture. Compatibility does not mean "the same as." Rather, compatibility refers to the sensitivity of development proposals in maintaining the character of existing development. Construction shall mean the erection of any on-site improvements on any parcel of ground located within a designated or eligible district or on a designated or eligible site, whether the site is presently improved or unimproved, or the erection of a new structure on such property. Context shall mean the totality of interrelated conditions in which a site, structure, object or district exists. The context of an area is the sum of the existing buildings and spaces, and the pattern of physical development in the area. It can also be a measurement of the scarcity or profusion of a particular resource type. Contributing shall mean a site, structure or object eligible for designation, or formally designated, that has significance and that retains enough exterior integrity to contribute to the character of a district even though its exterior may have been altered. Demolition shall mean any act or process that destroys in its entirety an eligible or designated site, structure or object, or a site, structure or object within an eligible or designated district. Determination of eligibility shall mean a decision by the Director and the chair of the Commission, or the Commission, that a site, structure, object or district meets one (1) or more of the standards for designation as a Fort Collins landmark, which determination shall be valid for five (5) years. The determination of eligibility for the National and/or State Register of Historic Places shall be according to the processes and procedures of the Colorado Historical Society. Director shall mean the Director of Community Development and Neighborhood Services or his or her designee. Packet Pg. 96 Attachment9.2: Ordinance No. 057, 2014 (SR 057-059 Items Historic Preservation Study Code Revisions) 3 District shall mean a geographically definable area possessing a significant concentration, linkage, or continuity of sites, structures, or objects and their surrounding environs united by past events or aesthetically by plan or physical development. A district may also comprise individual elements separated geographically but linked by association or history. Eligibility shall mean a resource’s ability to meet one (1) or more of the standards for designation as a Fort Collins landmark, or the criteria for designation on the National Register of Historic Places and/or State Register of Historic Places Properties. There are three (3) levels of eligibility for Fort Collins landmark designation: individual, contributing to a district, and noncontributing/not eligible. Improvement shall mean any building, structure, place, work of art or other object constituting a physical betterment of real property or any part of such betterment, including improvements on public property. Individual landmark shall mean a site, structure or object eligible for designation, or that has been formally designated, that has significance and exterior integrity. The property may have minor exterior alterations as long as such alterations have not substantially compromised the site’s, structure’s or object’s exterior integrity. Landmark or landmark district shall mean any site, structure, object or improvement and its surrounding environs or a group of sites, structures, objects or improvements or both and their surrounding environs: (1) Which has a special character or special historic or aesthetic interest or value as part of the development, heritage or cultural characteristics of the City, State or Nation; or (2) Wherein any event of major historic significance with a measurable effect upon society took place; or (3) Which is closely identified with a person or group of persons who have had some measurable influence on society; or (4) Wherein the broad cultural, political, economic or social heritage of the community is exemplified; or (5) Which faithfully portrays the environment of a group of people in an era of history characterized by a distinctive architectural style or which embodies those distinguishing characteristics of an architectural-type specimen or which is the work of an architect or master builder whose individual work has influenced the development of the City; or Packet Pg. 97 Attachment9.2: Ordinance No. 057, 2014 (SR 057-059 Items Historic Preservation Study Code Revisions) 4 (6) Which, because of being a part of or related to a square, park or other distinctive area, should be developed or preserved according to a plan based upon a historic, cultural or architectural significance; or (7) Which, due to unique location or singular physical characteristic, represents an established, familiar and significant visual feature of the neighborhood, community or City; or (8) Officially designated as a Fort Collins landmark or Fort Collins landmark district pursuant to the provisions of this Chapter; or (9) Officially designated as a state or national landmark or landmark district. Major alteration shall mean work that has the potential to substantially affecting more than one (1) aspect of exterior integrity. Minor alteration shall mean work that has the potential to substantially affecting no more than one (1) aspect of exterior integrity. Noncontributing/not eligible shall mean a site, structure or object that does not possess sufficient significance and/or exterior integrity for designation, and is considered noncontributing to a district, or not eligible to be designated as an individual landmark. Object shall mean a material thing of functional, aesthetic, cultural, historical or scientific value that may be, by nature or design, movable. Owner shall mean the owner of fee simple title as shown in the records of the County Assessor. Repair and maintenance shall mean work done on a site, structure or object in order to correct any deterioration, decay or damage to any part thereof in order to restore the same as nearly as practical to its condition prior to such deterioration, decay or damage. Resource shall mean any site, structure or object that is part of or constitutes a property. Significant structure shall mean a house, commercial/industrial building, barn, stable, granary, carriage house, chicken house or similar structure. Site shall mean the location of a significant event, a prehistoric or historic occupation or activity, or a structure or object whether standing, ruined, or vanished, where the location itself maintains historical or archeological value regardless of the value of any existing structure. Structure shall mean that which is built or constructed, an edifice or building of any kind or any piece of work artificially built up or composed of parts joined together in some definite manner. Packet Pg. 98 Attachment9.2: Ordinance No. 057, 2014 (SR 057-059 Items Historic Preservation Study Code Revisions) 5 Sec. 14-2. Declaration of policy. (a) It is hereby declared as a matter of public policy that the protection, enhancement and perpetuation of sites, structures, objects and districts of historical, architectural or geographic significance, located within the City, are a public necessity and are required in the interest of the prosperity, civic pride and general welfare of the people. (b) It is the opinion of the City Council that the economic, cultural and aesthetic standing of this City cannot be maintained or enhanced by disregarding the historical, architectural and geographical heritage of the City and by ignoring the destruction or defacement of such cultural assets. Sec. 14-3. Purpose. The purposes of this Section are to: (1) Designate, preserve, protect, enhance and perpetuate those sites, structures, objects and districts which reflect outstanding elements of the City's cultural, artistic, social, economic, political, architectural, historic or other heritage; (2) Foster civic pride in the beauty and accomplishments of the past; (3) Stabilize or improve aesthetic and economic vitality and values of such sites, structures, objects and districts; (4) Protect and enhance the City's attraction to tourists and visitors; (5) Promote the use of outstanding historical or architectural sites, structures, objects and districts for the education, stimulation and welfare of the people of the City; (6) Promote good urban design; (7) Promote and encourage continued private ownership and utilization of such sites, structures, objects or districts now so owned and used, to the extent that the objectives listed above can be attained under such a policy. Sec. 14-4. Staff. The staff of the Commission shall consist of a secretary and such other staff as may be authorized by the City. The secretary shall be the custodian of the records of the Commission, shall handle official correspondence and shall generally supervise the clerical and technical work of the Commission. The Director shall act as secretary and staff liaison to the Commission. Packet Pg. 99 Attachment9.2: Ordinance No. 057, 2014 (SR 057-059 Items Historic Preservation Study Code Revisions) 6 Sec. 14-5. Standards for determining the eligibility of sites, structures, objects and districts for designation as Fort Collins Landmarks or Landmark Districts. Properties eligible for designation must possess both significance and exterior integrity. In making a determination of eligibility, the context of the area surrounding the property shall be considered. (1) Significance is the importance of a site, structure, object or district to the history, architecture, archeology, engineering, or culture of our community, state or nation. Significance is achieved through meeting one or more of four standards recognized by the U.S. Department of Interior, National Park Service. These standards define how properties are significant for their association with events or persons, in design or construction, or for their information potential. (2) Standards for determining significance: a. Events. Properties may be determined to be significant if they are associated with events that have made a recognizable contribution to the broad patterns of the history of the community, state or nation. A property can be associated with either (or both) of two types of events: 1. A specific event marking an important moment in Fort Collins prehistory or history; and/or 2. A pattern of events or a historic trend that made a recognizable contribution to the development of the community, state, or nation. b. Persons/Groups. Properties may be determined to be significant if they are associated with the lives of persons or groups of persons recognizable in the history of the community, state or nation whose specific contributions to that history can be identified and documented. c. Design/Construction. Properties may be determined to be significant if they embody the identifiable characteristics of a type, period, or method of construction; represent the work of a craftsman or architect whose work is distinguishable from others by its characteristic style and quality; possess high artistic values or design concepts; or are part of a recognizable and distinguishable group of properties. This standard applies to such disciplines as formal and vernacular architecture, landscape architecture, engineering, and artwork, by either an individual or a group. A property can be significant not only for the way it was originally constructed or crafted, but also for the way it was adapted at a later period, or for the way it illustrates changing tastes, attitudes, and/or Packet Pg. 100 Attachment9.2: Ordinance No. 057, 2014 (SR 057-059 Items Historic Preservation Study Code Revisions) 7 uses over a period of time. Examples are residential buildings which represent the socio-economic classes within a community, but which frequently are vernacular in nature and do not have high artistic values. d. Information potential. Properties may be determined to be significant if they have yielded, or may be likely to yield, information important in prehistory or history. (3) Exterior integrity is the ability of a site, structure, object or district to be able to convey its significance. The exterior integrity of a resource is based on the degree to which it retains all or some of seven (7) aspects or qualities established by the U.S. Department of Interior, National Park Service: location, design, setting, materials, workmanship, feeling, and association. All seven (7) qualities do not need to be present for a site, structure, object or district to be eligible as long as the overall sense of past time and place is evident. (4) Standards for determining exterior integrity: a. Location is the place where the historic property was constructed or the place where the historic event occurred. b. Design is the combination of elements that create the form, plan space, structure, and style of a property. c. Setting is the physical environment of a historic property. Whereas location refers to the specific place where a property was built or an event occurred, setting refers to the character of the place. It involves how, not just where, the property is situated and its relationship to the surrounding features and open space. d. Materials are the physical elements that form a historic property. e. Workmanship is the physical evidence of the crafts of a particular culture or people during any given period in history or prehistory. It is the evidence of artisans’ labor and skill in constructing or altering a building, structure, or site. f. Feeling is a property’s expression of the aesthetic or historic sense of a particular period or time. It results from the presence of physical features that, taken together, convey the property’s historic character. g. Association is the direct link between an important historic event or person and a historic property. A property retains association if it is the place where the event or activity occurred and is sufficiently intact to convey that relationship to an observer. Like feeling, association requires the presence of physical features that convey a property’s historic character. Packet Pg. 101 Attachment9.2: Ordinance No. 057, 2014 (SR 057-059 Items Historic Preservation Study Code Revisions) 8 (5) Context. The area required for evaluating a resource’s context is dependent on the type and location of the resource. A house located in the middle of a residential block could be evaluated in the context of the buildings on both sides of the block, while a house located on a corner may require a different contextual area. Upon the submittal of an application necessitating a determination of eligibility for designation as a Fort Collins Landmark or Landmark District, the Director of Community Development and Neighborhood Services and/or the chair of the Commission shall determine the minimum area required for evaluating context, and such information, including photographs and other documents, as required for the determination. Sec. 14-6. Process for determining the eligibility of sites, structures, objects and districts for designation as Fort Collins Landmarks or Landmark Districts. (a) Application. An application for determining the eligibility of a site, structure, object or district for designation as a Fort Collins Landmark or Landmark District may be made by any resident of the City or owner of property in the City on forms prescribed by the City. Said application shall be filed with the Director. Within fifteen (15) days of the filing of such application, the Director and the chair of the Commission (or a designated member of the Commission appointed by the chair) shall determine the site, structure, object or district's current level of eligibility (individual, contributing or not eligible) for designation as a Fort Collins landmark based on the information contained in the application and information provided by the staff of the City or others, which determination shall be valid for five (5) years. The Director shall promptly publish the determination in a newspaper of general circulation in the City, and cause a sign to be posted on or near the structure stating that the building or structure is undergoing historic review. Said sign shall be at least four (4) square feet in size, readable from a point of public access and shall state that more information may be obtained from the Director. (b) Appeal of determination. Any determination made by the Director and the chair of the Commission, or his or her designee, regarding the structure’s level of eligibility may be appealed to the Commission by any resident of the City or owner of property in the City. Such appeal shall be set forth in writing and filed with the Director within fourteen (14) days of the date of the Director's determination. The appeal shall include a Colorado Cultural Resource Survey Architectural Inventory Form, prepared by an expert in historic preservation acceptable to the Director and the applicant, with the cost of such form to be paid by the appellant. Such form need not be filed with the appeal but must be filed at least ten (10) days prior to the hearing of the appeal. The Director shall schedule a date for hearing the appeal before the Commission as expeditiously as possible. Not less than ten (10) days prior to the date of the hearing, the Director shall provide the appellant with written notice of the date, time and place of the hearing of the appeal, which notice shall be deposited in the U.S. Mail, and shall publish notice of the hearing in a newspaper of general circulation in the City. In addition, the Director shall cause a sign to be posted on or near the structure stating that the building or structure is undergoing historic review. Packet Pg. 102 Attachment9.2: Ordinance No. 057, 2014 (SR 057-059 Items Historic Preservation Study Code Revisions) 9 Said sign shall be at least four (4) square feet in size, be readable from a point of public access, and state that more information may be obtained from the Director. Sec. 14-7. Waiver of conditions. (a) Upon a showing of substantial hardship or to protect against an arbitrary result, and following notice as provided in § 14-25, the Commission may waive such conditions and requirements as are set forth in this Chapter provided the Commission finds that the spirit and purpose of the Chapter are not significantly eroded and that the requested waiver meets one or both of the following criteria: (1) The requested waiver is the minimum necessary to accommodate exceptional physical conditions or other extraordinary and exceptional situations unique to the affected property, which may include, but are not limited to, physical conditions such as exceptional narrowness, shallowness or topography, and such difficulties or hardship are not caused by the act or omission of the applicant; and/or (2) The requested wavier as submitted will not diverge from the conditions and requirements of this Chapter except in nominal and inconsequential ways, and will continue to advance the purposes of this Chapter. (b) Any finding made under Paragraph (1) or (2) above shall be supported by specific findings showing how the proposal, as submitted, meets the requirements and criteria of said Paragraph (1) or (2). Sec. 14-8. Offenses against historic property. (a) Except as may be authorized pursuant to this Chapter 14 or the provisions of the Land Use Code, no person shall damage, deface, or destroy any site, structure or object that is designated as a Fort Collins, state or national historic landmark or that is a contributing structure to any Fort Collins or national landmark district, or that is undergoing any of the processes provided for in this Chapter 14. (b) Except in response to a bona fide determination of imminent threat under § 14-51, no person shall deviate from or fail to comply with any approved plan of protection for any historic resource that is required under this Chapter 14 or the Land Use Code. Sec. 14-9. Appeal of decisions. Final decisions of the Commission shall be subject to the right of appeal to the City Council as set forth in § 2-46 et seq. unless otherwise provided. Any action taken in reliance upon any decision of the Commission that is subject to appeal under the provisions of this Chapter shall be at the sole risk of the person(s) taking such action, and the City shall not be liable for any damages arising from any such action taken during said period of time. Packet Pg. 103 Attachment9.2: Ordinance No. 057, 2014 (SR 057-059 Items Historic Preservation Study Code Revisions) 10 Sec. 14-10. Severability. It is hereby declared to be the legislative intent of the City Council that the provisions of this Chapter shall be severable in accordance with the provisions set forth below: (1) If any provision of this Chapter is declared to be invalid by a decision of any court of competent jurisdiction, the effect of such judicial decision shall be limited to that provision which is expressly stated in the decision to be invalid. Such decision shall not affect, impair or nullify this Chapter as a whole or any other part, and the rest of this Chapter shall continue in full force and effect. (2) If the application of any provision of this Chapter to any lot, structure or other improvement or a tract of land is declared to be invalid by a decision of any court of competent jurisdiction, the effect of such judicial decision shall be limited to that lot, structure or other improvement or tract of land immediately involved in the controversy, action or proceeding in which the judgment or decree of invalidity was rendered. Such decision shall not affect, impair or nullify this Chapter as a whole or the application of any provision to any other lot, structure or other improvement or tract of land. Secs. 14-11 – 14-20. Reserved Section 2. That Article II of Chapter 14 of the Code of the City of Fort Collins is hereby repealed and reenacted to read as follows: ARTICLE II. DESIGNATION PROCEDURE Sec. 14-21. Initiation of designation procedure. The landmark designation process may be initiated by motion of the Commission or upon application of the owner(s) of the property to be designated, or of any three (3) or more residents of the City. All applications submitted in accordance with this Section shall include a description of the property proposed for designation and a detailed outline of the reasons why such property should be designated and why the boundaries of the property should be determined as described in the application. The Commission shall promptly determine whether the site, structure, object or district meets the criteria of a landmark or landmark district, and, if so, direct staff to investigate the benefits to the City of landmark designation. If the owner is not the applicant, the Director shall contact the owner or owners of such landmark or landmark district outlining the reasons and effects of designation as a landmark and, if possible, shall secure the owner's consent to such designation. If the Director is unable to personally contact such owner(s), it shall be sufficient to send a written request for the consent to designation of such property by certified or registered mail, return receipt requested, addressed to the owner(s) as shown on the most recent records of the County Assessor at the address shown on such records. Packet Pg. 104 Attachment9.2: Ordinance No. 057, 2014 (SR 057-059 Items Historic Preservation Study Code Revisions) 11 Sec. 14-22. Hearing process. (a) If all owners of the property to be designated consent in writing to such designation, the Commission, upon the affirmative vote of a majority of the members present, may adopt a resolution recommending to the City Council the designation of the landmark or landmark district without the necessity of notice or hearing and without the review by the Department of Community Development and Neighborhood Services required by § 14-24 below. (b) If all owners of the property to be designated do not consent to designation of the property within fifteen (15) days from the date of receipt of the request for consent to designation, the Commission shall hold a hearing at a specified time, date and place, following the giving of notice as described in § 14-23. The purpose of said hearing shall be to determine whether to proceed with consideration of the designation process without the consent of one (1) or more owners of the property. Upon the affirmative vote of at least six (6) of its members at the hearing, the Commission may adopt a resolution stating that the preliminary investigation by the Commission indicates that the described property is eligible for designation as a landmark or landmark district, and stating the reason the Commission feels that it should further consider the possible designation of the property without the consent of the owner(s). The Commission shall then schedule a second public hearing as described in Subsection (c). (c) Upon determination by the Commission under Subsection (b) that it should further consider the designation of the property, and following the giving of notice as described in § 14-23, the Commission shall hold a second hearing. At least six (6) members of the Commission must be present at such hearing. If at least six (6) members are not present, the members present shall adjourn the meeting to another date within two (2) weeks. If at least six (6) members are not present at such adjourned meeting, the hearing shall be canceled and the designation procedure terminated. If any hearing is continued, the time, date and place of the continuation shall be established and announced to those present when the current session is to be adjourned. Such information shall be promptly forwarded, by regular mail, to the owners of record as established and addressed pursuant to § 14-23. (d) Reasonable opportunity shall be provided for all interested parties to express their opinions at the foregoing hearings regarding the proposed designation(s). However, nothing contained herein shall be construed to prevent the Commission from establishing reasonable rules to govern the proceedings of the hearings or from establishing reasonable limits on the length of individual presentations. The hearings shall be recorded and minutes provided to each City Councilmember. Written presentations, including the report of the Department of Community Development and Neighborhood Services as described in § 14-24, shall be included in the record of the hearing. Packet Pg. 105 Attachment9.2: Ordinance No. 057, 2014 (SR 057-059 Items Historic Preservation Study Code Revisions) 12 Sec. 14-23. Notice of hearing. Notice of the hearings referenced in § 14-22 shall be given as follows: (1) Written notice of the time, date, place and subject of the hearing shall be sent by registered or certified mail not less than thirty (30) days prior to the hearing to all owners of record on the date of the resolution who own the real property being proposed for designation as a landmark or landmark district. Such notice shall be deemed delivered upon the passage of five (5) days from the deposit of the notice in the mail. (2) Signs indicating that landmark designation is being considered by the Commission shall be posted by the Commission for a period of not less than fifteen (15) days immediately preceding the applicable hearing on all property proposed for landmark designation and/or on the boundaries of all areas proposed for landmark district designations. Such signs shall be prominently displayed and easily readable from abutting public ways. (3) A legal notice indicating the nature of the hearings, the property involved and the time, date and place of the scheduled public hearing shall be published in a local newspaper of general circulation one (1) time at least fifteen (15) days prior to the hearing. (4) Written notice of the proposed landmark designation, including the identification of the property, the basis for commencing with the designation procedure and the time, date and place of the hearing, shall be given to the Director not later than thirty (30) days prior to the hearing. Sec. 14-24. Department of Community Development and Neighborhood Services review. (a) The Department of Community Development and Neighborhood Services shall review the proposed designation with respect to: (1) Its relationship to the zoning ordinance of the City and the Comprehensive Plan of the City; (2) The effect of the designation upon the surrounding neighborhood; (3) Such other planning considerations as may be relevant. (b) The Department of Community Development and Neighborhood Services may recommend approval, rejection or modification of the proposed designation and its recommendation shall contain a statement of the basis for the recommendation. The recommendation shall be delivered to the Commission in written form at or prior to any hearing held under Subsection 14-22(c). Packet Pg. 106 Attachment9.2: Ordinance No. 057, 2014 (SR 057-059 Items Historic Preservation Study Code Revisions) 13 Sec. 14-25. Findings and recommendations of the Commission. The Commission shall, within thirty-five (35) days of a hearing held under Subsection 14-22(c), adopt a recommendation to the City Council regarding the application for designation. The Commission may recommend modification of any proposal, but no proposal may be extended beyond the boundaries of the land described in the original application unless the initiation and hearing procedures is are repeated for the enlarged boundaries. The Commission shall set forth in its records the findings of fact that constitute the basis for its recommendation. Sec. 14-26. Transmittal to City Council. (a) Within fifteen (15) days after reaching its decision, the Commission shall transmit to the City Council its recommendation on the designation of a landmark or landmark district, including the description of the property involved and the findings upon which the recommendation was based. (b) If more than one (1) property is involved in the designation procedure, the Commission may recommend designation for any or all of the properties involved. In no event may any property be added to the area described in the initiation resolution without instituting a new designation procedure. Sec. 14-27. City Council action. Upon receipt of the recommendations transmitted by the Commission, the City Council may by ordinance designate property as a landmark or landmark district. Due consideration shall be given to the written view of owners of affected property, and in its discretion the City Council may hold public hearings on any proposed landmark or landmark district designation. If the City Council does not so designate a property, then any pending application for a permit to alter or demolish the structure on the property may be approved without the necessity of compliance with Article IV of this Chapter. Sec. 14-28. Recording with County Clerk. Within fifteen days of the effective date of an ordinance designating property as a landmark or landmark district, the City shall record among the real estate records of the County Clerk and Recorder either: (1) A certified copy of the ordinance designating the specified property as a landmark or landmark district; or (2) A notice stating that the specified property has been designated as a landmark or landmark district and citing the ordinance and the effective date of the ordinance which Packet Pg. 107 Attachment9.2: Ordinance No. 057, 2014 (SR 057-059 Items Historic Preservation Study Code Revisions) 14 made the designation effective. The notice may also contain a brief summary of the effects of such designation as set forth in this Chapter. Sec. 14-29. Final notification to owner. Within fourteen (14) days after the recording of the ordinance or the notice of designation of property as a landmark or landmark district, the Director shall send to the owner of each property so designated a letter outlining the reasons for such designation and the obligations and restrictions created by such designation. Such letter shall also contain a request that the owner or his or her successors or assigns notify the Director prior to: (1) Preparation of plans for the reconstruction or alteration of the exterior of improvements located on such property; (2) Preparation of plans for the construction, exterior alteration, or demolition of improvements on such property. Sec. 14-30. Interim control. No building permit shall be issued by the Department of Community Development and Neighborhood Services for the construction, exterior alteration, or demolition of a site, structure or object under consideration for landmark designation or any site, structure or object within a district under consideration for landmark district designation from the date of the hearing of the Commission at which the Commission approves a motion directing staff to investigate the benefits to the City of landmark designation under §14- 21 until final disposition of the designation by the City Council unless such alteration, construction, or demolition is approved by a motion of the Commission as not having an adverse effect on the property’s eligibility for designation, or is authorized by resolution of the City Council as necessary for public health, welfare or safety. In no event shall the delay in issuance of a building permit due to the provisions of this Section be for more than one hundred eighty (180) days. Sec. 14-31. Amendment or rescission of designation. A landmark and landmark district designation may be amended or rescinded in the same manner as the original designation was made. Sec. 14-32. Notification of state or national designation. The Director shall promptly notify the Commission of any known national or state designations which occur within the City. Secs. 14-33 – 14-45. Reserved. Packet Pg. 108 Attachment9.2: Ordinance No. 057, 2014 (SR 057-059 Items Historic Preservation Study Code Revisions) 15 Section 3. That Article III of Chapter 14 of the Code of the City of Fort Collins is hereby amended to read as follows: ARTICLE III. CONSTRUCTION, EXTERIOR ALTERATIONS, OR DEMOLITION OF DESIGNATED HISTORIC RESOURCES Sec. 14-46. Work requiring building permit. (a) Except as provided in § 14-51, action on an application for a building permit for a structure or object designated as a landmark or located in a landmark district, shall be deferred by the Director of Building and Zoning until the application is accompanied by a report of acceptability from the Commission for the proposed work, when the proposed work involves any of the following: (1) Alteration or reconstruction of or addition to the exterior of any improvement which constitutes all or part of a landmark or landmark district; (2) Demolition or exterior alteration of any improvement or object which constitutes all or part of a landmark or landmark district; (3) Construction or erection of or addition to any improvement upon any land included in a landmark district. (b) In order to obtain a report of acceptability, the applicant shall submit the application for a building permit, including sketches and plans. Such plans shall include, without limitation, a plan of protection acceptable to the Commission showing how the applicant will ensure that no damage will occur to any historic resources on or adjacent to the site, and other documents as required by the Commission, to the Commission through the Director. All such applications shall be reviewed by the Commission in two (2) phases to determine compliance with this Chapter as follows: (1) Conceptual review. Conceptual review is an opportunity for the applicant to discuss requirements, standards, design issues and policies that apply to landmarks or sites, structures and objects within a landmark district. Problems can be identified and solved prior to final review of the application. Conceptual review of any proposed work may be limited to certain portions of the work as deemed appropriate by the Commission. If, upon review of the proposed work, the Commission determines that conceptual review is not necessary given the absence of a significant impact on the landmark or landmark district involved, it may be waived by the Commission, and the Commission may then proceed to consider the proposed work on final review at the same meeting. Packet Pg. 109 Attachment9.2: Ordinance No. 057, 2014 (SR 057-059 Items Historic Preservation Study Code Revisions) 16 (2) Final review and approval. Each application shall be finally reviewed and approved by the Commission at the same meeting as the Commission’s conceptual review of the application, if any or at a subsequent meeting of the Commission. During final review, the Commission shall consider the application and any changes made by the applicant since conceptual review as set forth in this Subsection. Sec. 14-47. Work not requiring building permit; application for approval. (a) Except as otherwise provided herein, no land surface within any real property designated as a landmark or landmark district shall be changed and no improvements shall be erected, removed, restored, demolished or altered, including alterations of color, without prior written approval of the Commission. No addition shall be made to any real property designated as a landmark or landmark district in such a manner or of such a character as to change the exterior appearance or exterior characteristics which change shall be visible from any public street, park or other public place, without prior written approval of the Commission. (b) Any person desiring to remove, demolish, or in any way change the exterior appearance or the exterior characteristics of improvements on real property designated as a landmark or in a landmark district or desiring to change the land surface of any such real property, shall submit to the Commission an application for approval and a specific statement of the work proposed, together with such details as the Commission may require. Sec. 14-48. Report of Acceptability. (a) If upon receipt of an application for a report of acceptability pursuant to § 14-46, or upon receipt of an application pursuant to § 14-47, the Commission finds that the proposed work is of a nature that will not erode the authenticity or destroy any distinctive exterior feature or characteristic of the improvements or site and is compatible with the distinctive characteristics of the landmark or landmark district and with the spirit and purpose of this Chapter, the Commission shall advise the applicant in writing by issuing a report of acceptability. In the case of an application under § 14-46, upon receipt of the Commission's report of acceptability and approved plans and specifications, the Director of Building and Zoning may proceed with the review of the application for a building permit. No change that would defeat the purpose of this Chapter shall be made in an application for a building permit or the plans and specifications for the proposed work approved by the Commission without resubmittal to the Commission and approval of such changes in the same manner as the original application. (b) In determining the decision to be made concerning the issuance of a report of acceptability, the Commission shall consider the following criteria: Packet Pg. 110 Attachment9.2: Ordinance No. 057, 2014 (SR 057-059 Items Historic Preservation Study Code Revisions) 17 (1) The effect of the proposed work upon the general historical and/or architectural character of the landmark or landmark district; (2) The architectural style, arrangement, texture and materials of existing and proposed improvements, and their relation to the landmark or the sites, structures and objects in the district; (3) The effects of the proposed work in creating, changing, obscuring or destroying the exterior characteristics of the site, structure or object upon which such work is to be done; (4) The effect of the proposed work upon the protection, enhancement, perpetuation and use of the landmark or landmark district; (5) The extent to which the proposed work meets the standards of the City and the United States Secretary of the Interior for the preservation, reconstruction, restoration or rehabilitation of historic resources. Sec. 14-49. Work not detrimental to historic, architectural or cultural material; administrative process. (a) Any work that would otherwise qualify for consideration under the procedures established in § 14-46 or 14-47 of this Article may, at the option of the applicant and with the consent of the chair of the Commission, be considered administratively by the Director. The Director may consider, under the authority of this Section, applications for approval of color selection from a historically authentic palette of colors, signs, awning re-coverings and minor exterior alterations to a landmark or a site, structure or object located in a landmark district. The Director may, under the authority of this Section, consider changes originally initiated by the applicant as well as changes to plans previously approved by the Commission. Any application submitted to the Director under the authority of this Section shall be in writing and shall contain a specific statement of the work proposed, together with such details as the Director may require. (b) If, upon receipt of any such application, the Director finds that the proposed work is compatible with the distinctive characteristics of the landmark or landmark district and with the spirit and purpose of this Chapter, and complies with all of the criteria for review established in § 14-48(b) above, the Director shall render a written decision approving the work. In the case of an application under § 14-46, the Director of Building and Zoning shall proceed with the review of the building permit application only upon receipt of the Director's decision and approved plans and specifications. No change shall be made in any such application for a building permit or in the plans and specifications for work approved by the Director unless such changes are submitted to and approved by the Director in the same manner as the original application. The proposed work shall not be commenced until the Director has issued the decision approving the work and a building permit (if applicable) has been issued. Packet Pg. 111 Attachment9.2: Ordinance No. 057, 2014 (SR 057-059 Items Historic Preservation Study Code Revisions) 18 (c) Decisions of the Director made under the authority of this Section may be appealed to the Commission by the applicant, provided that any such appeal shall be set forth in writing and filed with the Director within fourteen (14) days of the date of the Director's decision. The Commission shall schedule a date for hearing the appeal before the Commission as expeditiously as possible. The Commission shall provide the appellant with written notice of the date, time and place of the hearing of the appeal, which notice shall be deposited in the U.S. Mail not less than five (5) days prior to the date of the hearing, and shall also publish notice of the hearing in a newspaper of general circulation in the City not less than ten (10) days prior to the date of the hearing. Any action taken in reliance upon the decision of the Director shall be totally at the risk of the persons taking such action until all appeal rights related to such decision have been exhausted, and the City shall not be liable for any damages arising from any such action taken during said period of time. Sec. 14-50. Denial of building permit. If the proposed work is not approved by the Commission, the Director of Building and Zoning shall deny the application for the building permit and shall advise the applicant. No reapplication shall be submitted pursuant to § 14-46 et seq., under the original plans and specifications found unacceptable by the Commission except upon a showing of changed circumstances sufficient to justify the reapplication. Sec. 14-51. Remedying of dangerous conditions. In any case where the Director of Building and Zoning, the Poudre Fire Authority or any other a properly authorized public official or employee orders or directs the reconstruction, alteration, repair, or demolition of any structure that has been designated as a Fort Collins or national landmark, or any structure located in a Fort Collins or national landmark district, or any structure that has been determined under this Chapter to be eligible for designation as a contributing element of such district, for the purpose of remedying conditions determined by that officer or employee, department or authority to constitute an imminent threat to life, health or property, nothing contained herein shall be construed as making it unlawful for any person to comply with such order. Any sSuch officer, department or authority employee shall take immediate steps to notify the Commission of the proposed issuance of any such order or directive and may include in suchthe order or directive any timely received requirements or recommendations of the Commission. In the event that such officer or employee has determined that the structure in question is capable of being made safe by repairs and need not be demolished, the structure shall be repaired or demolished only in accordance with the provisions of this Article. Sec. 14-52. Normal maintenance and repair. Packet Pg. 112 Attachment9.2: Ordinance No. 057, 2014 (SR 057-059 Items Historic Preservation Study Code Revisions) 19 Nothing in this Chapter shall be construed to prohibit the accomplishment of any work on any landmark or in any landmark district which will neither change the exterior appearance nor the exterior characteristics of improvements, nor the character or appearance of the land itself and which is considered necessary as a part of normal maintenance and repair. Sec. 14-53. Minimum maintenance requirements. (a) All sites, structures or objects designated as landmarks and all sites, structures or objects located within a landmark district shall be maintained in such fashion as to meet the requirements of the International Property Maintenance Code or the Uniform Code for Building Conservation, as adopted by the City. The owner of such sites, structures or objects shall also keep in good repair all structural elements thereof which, if not so maintained, may cause or tend to cause the exterior portions of such sites, structures or objects to deteriorate, decay or become damaged or otherwise to fall into a state of disrepair which would have a detrimental effect upon the historic character of such sites, structures or objects or the landmark districts, if any, in which they are situated. (b) The Commission may request that the Director of Building and Zoning require correction of defects or repairs to any sites, structures or objects regulated by this Section. Sec. 14-54. Violations and penalties. Any person violating any provision of this Chapter shall be subject to the penalty provided in § 1-15. In case any improvement is erected, constructed, reconstructed, altered, added to or demolished in violation of this Chapter, the City or any proper person may institute an appropriate action or proceeding to prevent such unlawful action. The imposition of any penalty hereunder shall not preclude the City or any proper person from instituting any proper action or proceeding to require compliance with the provisions of this Chapter and with administrative orders and determinations made hereunder. Sec. 14-55. Severability. It is hereby declared to be the legislative intent that the several provisions of this Chapter shall be severable in accordance with the provisions set forth below: (1) If any provision of this Chapter is declared to be invalid by a decision of any court of competent jurisdiction, it is hereby declared to be the legislative intent that the effect of such decision shall be limited to that provision which is expressly stated in the decision to be invalid. Such decision shall not affect, impair or nullify this Chapter as a whole or any other part, but the rest of this Chapter shall continue in full force and effect; (2) If the application of any provision of this Chapter to any lot, structure or other improvement or a tract of land is declared to be invalid by a decision of any court of competent jurisdiction, it is hereby declared to be the legislative intent that the effect of Packet Pg. 113 Attachment9.2: Ordinance No. 057, 2014 (SR 057-059 Items Historic Preservation Study Code Revisions) 20 such decision shall be limited to that lot, structure or other improvement or tract of land immediately involved in the controversy, action or proceeding in which the judgment or decree of invalidity was rendered. Such decision shall not affect, impair or nullify this Chapter as a whole or the application of any provision to any other lot, structure or other improvement or tract of land. Secs. 14-56 – 14-70. Reserved. Section 4. That Article IV of Chapter 14 of the Code of the City of Fort Collins is hereby amended to read as follows: ARTICLE IV. DEMOLITION OR EXTERIOR ALTERATION OF HISTORIC STRUCTURES NOT DESIGNATED AS FORT COLLINS LANDMARKS OR LOCATED IN A FORT COLLINS LANDMARK DISTRICT Sec. 14-71. General. (a) This Article shall not apply to any structure designated as a Fort Collins landmark or located in a Fort Collins landmark district. (b) With the exception of any structure found to pose an imminent threat under Section 14-51 as adopted and amended by the City, no structure (or portion thereof) fifty (50) years of age or older that meets one (1) or more of the standards of eligibility contained in § 14-5 of this Code may be demolished or its exterior altered nor shall any permit for such demolition or alteration be issued unless the owner of such structure has complied with the provisions of this Section and § 14-72 below. (This Article shall not apply to interior demolition or alteration activities not visible from any public street, park or other public place, or to demolition or alteration activities as they affect the surface or subsurface of the ground, or any archeological impacts pertaining thereto.) Sec. 14-72. Procedures for review of applications for demolition or exterior alteration. (a) The owner of any structure governed by this Article shall make application for City approval of the demolition or exterior alteration of such structure (or portion thereof) on forms prescribed by the City. Said application shall be filed with the Director. Within fourteen (14) days of the filing of such application, the Director and the chair of the Commission, (or a designated member of the Commission appointed by the chair, who shall in this Section be referred to as “designee’), shall determine if the proposed work constitutes a demolition or a minor or major alteration of the exterior. Packet Pg. 114 Attachment9.2: Ordinance No. 057, 2014 (SR 057-059 Items Historic Preservation Study Code Revisions) 21 (b) If the Director and chair of the Commission (or designee) agree that the proposed work is a minor alteration, then the application shall be approved, and any such approval shall not be subject to appeal. If the work is determined to be a demolition or major alteration, the Director and the chair of the Commission (or designee) shall either refer the matter to the Commission or Design Review Subcommittee pursuant to Subsection (c), or shall determine whether either Paragraphs (1) or (2) are met: (1) the structure (or portion thereof), is not eligible for individual designation as a Fort Collins landmark, and the structure is not designated on the National Register of Historic Places and/or State Registers of Historic Places Properties, either individually or as a contributing element of a National and/or State Register district; or (2) both of the following conditions are met: a. the structure (or portion thereof) is eligible for individual designation as a Fort Collins landmark, or the structure is designated on the National and/or State Registers of Historic Places, either individually or as a contributing element of a National and/or State Register district; and b. the proposed demolition or exterior alteration of the structure (or portion thereof), in the judgment of the Director and the chair of the Commission (or designee), would not be detrimental to the current level of eligibility of the remaining structure, if any, adjacent properties, the surrounding neighborhood and the National and/or State Register district in which the structure is located, if any. If the Director and chair of the Commission (or designee) so determine, then the application shall be approved. (c) If the application is not approved pursuant to Paragraphs (1) or (2), above, the application shall be considered by the Commission pursuant to Subsection (f), below, unless the Director or the chair of the Commission, with the consent of the applicant, refers the application to the Design Review Subcommittee of the Commission. The decision to refer is not an appealable decision. (d) If the application is referred to the Design Review Subcommittee, the Director shall schedule a meeting on the application before the Design Review Subcommittee as expeditiously as practical following receipt of the information required under Subsection 14-46(b) and any other documents required by the Design Review Subcommittee. At the meeting, the Design Review Subcommittee shall explore with the applicant all means for substantially preserving the eligibility of the structure which would be affected by the requested permit. Packet Pg. 115 Attachment9.2: Ordinance No. 057, 2014 (SR 057-059 Items Historic Preservation Study Code Revisions) 22 (1) In making a determination concerning the proposal, the Subcommittee shall consider the following criteria: a. the effect of the proposed work upon the general historical and/or architectural character of the landmark or landmark district; b. the architectural style, arrangement, texture and materials of existing and proposed improvements, and their relation to the landmark or the sites, structures and objects in the district; c. the effects of the proposed work in creating, changing, obscuring or destroying the exterior characteristics of the site, structure or object upon which such work is to be done; d. the effect of the proposed work upon the protection, enhancement, perpetuation and use of the landmark or landmark district; and e. the extent to which the proposed work meets the standards of the City and the United States Secretary of the Interior for the preservation, reconstruction, restoration or rehabilitation of historic resources. (2) If the Design Review Subcommittee unanimously agrees on alternative plans acceptable to the applicant, it shall provide the Director with a written approval of such alternative plans, and any permit for the project shall include such alternative plans. (3) If the Design Review Subcommittee does not so agree, then the application shall be referred to the Commission for review under § 14-72(f). (e) Any determination made pursuant to Section 14-72(b) by the Director and the chair of the Commission (or his or her designee) or made by the Design Review Subcommittee pursuant to Section 14-72(d), may be appealed to the Commission by any resident of the City or owner of property in the City. Such appeal shall be set forth in writing and filed with the Director within fourteen (14) days of the decision being appealed. The appeal shall include a Colorado Cultural Resource Survey Architectural Inventory Form, prepared by an expert in historic preservation acceptable to the Director and the applicant, with the cost of such form to be paid by the appellant. Such form need not be filed with the appeal but must be filed at least ten (10) days prior to the hearing of the appeal. The Commission shall schedule a date for hearing the appeal before the Commission as expeditiously as possible. Not less than ten (10) days prior to the date of the hearing, the Commission shall provide the appellant with written notice of the date, time and place of the hearing of the appeal, which notice shall be deposited in the U.S. Mail, and shall publish in a newspaper of general circulation in the City notice of the hearing. In addition, the Commission shall cause a sign to be posted on or near the Packet Pg. 116 Attachment9.2: Ordinance No. 057, 2014 (SR 057-059 Items Historic Preservation Study Code Revisions) 23 structure proposed for demolition or exterior alteration stating that the building or structure is undergoing historic review. Said sign shall be at least four (4) square feet in size, readable from a point of public access and shall state that more information may be obtained from the Director. (f) If a demolition or exterior alteration permit application has been referred to the Commission under Subsection (c), then the application shall be processed and considered in accordance with this Subsection. (1) All applications under Section14-72(f) shall be accompanied by the payment of a fee in the amount of two hundred fifty dollars ($250.) to cover the costs of processing the request for demolition or exterior alteration at the final hearing before the Commission and shall contain such information as the Director reasonably believes is necessary for a full and complete consideration of the request, which information shall include, but need not be limited to: a. A Colorado Cultural Resource Survey Architectural Inventory Form prepared by an expert in historic preservation, acceptable to the Director and the applicant, with the cost of such form and report to be paid by the applicant; b. Detailed plans and specifications describing and depicting the appearance of the site, structure or object that is the subject of the application, in context, after the proposed alteration or demolition; c. Evidence satisfactory to the Director that all administrative and quasi judicial approvals necessary to accommodate the proposed demolition or alteration have been obtained. d. A plan of protection acceptable to the Commission showing how the applicant will ensure that no damage will occur to any historic resources on or adjacent to the site. (2) The Director shall schedule a date for any hearing to be held by the Commission under this Paragraph as expeditiously as possible and shall provide the applicant with written notice of the date, time and place of the hearing, which notice shall be deposited in the U.S. Mail not less than ten (10) days prior to the date of the hearing, and shall publish in a newspaper of general circulation in the City notice of the hearing not less than ten (10) days prior to the date of the hearing. (3) Not less than thirty (30) days prior to the hearing of the Commission, the applicant shall: Packet Pg. 117 Attachment9.2: Ordinance No. 057, 2014 (SR 057-059 Items Historic Preservation Study Code Revisions) 24 a. Cause a sign to be posted on or near the structure proposed for demolition or exterior alteration, stating that the building or structure is undergoing historic review. Said sign shall be at least four (4) square feet in size, readable from a point of public access and shall state that more information may be obtained from the Director. b. Request that the City generate a list of owners of record of all real property within a minimum of eight hundred (800) feet (exclusive of public rights-of-way, public facilities, parks or public open space) of the property lines of the parcel of land upon which the structure is situated, which list shall be prepared from the records of the County Assessor. (4) Written notice of the hearing shall be mailed by the Director to all persons named on the list generated under Paragraph (3)b. above. Said mailing shall occur at least fourteen (14) days prior to the hearing date. The applicant shall pay postage and handling costs as established by the Director. (5) The Commission shall approve the application (with or without conditions) at the hearing or, in the alternative, it may postpone consideration of the application for a period not to exceed forty-five (45) days, in order to facilitate the gathering of additional information needed for the full and complete consideration of the request by the Commission, which information may include the opinion of the staff regarding the benefits to the City of landmark or landmark district designation of the property in accordance with Article II of this Chapter. In the event that the Commission has not made a final decision within said forty- five (45) day period, then the Commission shall be deemed to have approved, without condition, the proposed demolition or exterior alteration. (6) Upon approval of the application by the Director or the Commission, the owner may obtain a demolition or alteration permit and may thereafter demolish or alter the structure (or portion thereof) in compliance with all applicable laws, ordinances and regulations. (7) The Commission may, as a condition of its approval of the demolition or alteration of a structure (or portion thereof), require the property owner to provide the City with such additional information as will, in the opinion of the Commission, help to mitigate the loss to the City caused by the demolition or exterior alteration of the structure (or portion thereof). These conditions may include, but need not be limited to: a. Comprehensive photographic documentation of such structure, with prints and negatives; Packet Pg. 118 Attachment9.2: Ordinance No. 057, 2014 (SR 057-059 Items Historic Preservation Study Code Revisions) 25 b. Comprehensive historical, developmental, social, and/or architectural documentation of the property and the neighborhood containing the property; and/or c. Any other mitigating solution agreed upon by the Commission, the applicant, and any other applicable parties. Sec. 14-73. Remedying of dangerous conditions. In any case where a properly authorized public official or employee orders the demolition of any structure that has been determined under this Chapter to be eligible for designation as a contributing element of a Fort Collins or national landmark district, or any structure located in a Fort Collins or national landmark district, for the purpose of remedying conditions determined by that officer or employee to constitute an imminent threat to life, health or property, nothing contained herein shall be construed as making it unlawful for any person to comply with such order. Such officer or employee shall take immediate steps to notify the Commission of the proposed issuance of such order and may include in the order any timely received requirements or recommendations of the Commission. In the event that such officer or employee has determined that the structure in question is capable of being made safe by repairs and need not be demolished, the structure shall be repaired or demolished only in accordance with the provisions of this Article. Sec. 14-7374. Notice defects. Neither of the following shall affect the validity of any hearing or determination made under the provisions of this Chapter: (a) The fact that written notice, mailed as required under the provision of this Chapter, was not actually received by one or more of the intended recipients. (b) The fact that signage posted in compliance with the provisions of this Chapter was subsequently damaged, stolen, or removed, either by natural causes or by persons other than the person responsible for posting such signage or his or her agents. Secs. 14-745 – 14-80. Reserved. Section 5. That Article V of Chapter 14 of the Code of the City of Fort Collins is hereby amended to read as follows: ARTICLE V. LANDMARK REHABILITATION LOAN PROGRAM Sec. 14-81. Purpose. Packet Pg. 119 Attachment9.2: Ordinance No. 057, 2014 (SR 057-059 Items Historic Preservation Study Code Revisions) 26 The City Council hereby establishes a landmark rehabilitation loan program and finds that the program promotes a valid public purpose of increasing the quality, exterior integrity and permanence of the City's stock of historic landmarks for the enjoyment and benefit of present and future generations of citizens of the City by making available to the owners of designated Fort Collins landmarks or contributing structures in designated Fort Collins landmark districts a source of funding for exterior rehabilitation of such structures. Sec. 14-82. Establishment; funding. The City Manager shall administer the program for awarding zero-interest loans for the rehabilitation of Fort Collins landmark structures and/or contributing structures in Fort Collins landmark districts. The City Manager may promulgate procedural rules and regulations for the efficient administration of the program. No such loan shall exceed the sum of seven thousand five hundred dollars ($7,500.) unless the City Council, by ordinance or resolution, authorizes a larger loan. All loans shall be funded solely from those funds held by the City for financial support of the program in the General Fund, and all loans shall be expressly contingent upon the availability of sufficient funds to support the loan. Loan recipients shall, as a condition of obtaining the loan, agree to repay the loan in full upon sale or transfer of the property. All loan repayments shall be returned to the landmark rehabilitation loan program. Sec. 14-83. Criteria. No landmark rehabilitation loan shall be awarded unless the following criteria and requirements have been met: (1) The subject structure must have been designated as a Fort Collins landmark or be a contributing structure in a Fort Collins landmark district pursuant to this Chapter before the landmark rehabilitation loan can be awarded. (2) All loan recipients shall provide matching funds in an amount equal to or greater than the amount of the loan. (3) The matching funds provided by the loan recipient may be utilized only for exterior rehabilitation of the subject property and/or the stabilization of the structure, the rehabilitation of electrical, heating or plumbing systems, and/or the rehabilitation or installation of fire sprinkling systems in commercial structures. Neither the loan nor the matching funds shall be used for the installation of nor rehabilitation of signage or interior rehabilitation or decoration, nor the installation of building additions or the addition of architectural or decorative elements which are not part of the landmarked structure. (4) Loan funds may be expended only for rehabilitation of the exterior of a designated Fort Collins landmark structure or contributing structure in a Fort Collins landmark district. No interior improvements may be purchased utilizing City loan funds. Packet Pg. 120 Attachment9.2: Ordinance No. 057, 2014 (SR 057-059 Items Historic Preservation Study Code Revisions) 27 (5) The standards and/or guidelines of the City and the United States Secretary of the Interior for the preservation, reconstruction, restoration or rehabilitation of historic resources then in effect shall serve as the standards by which all rehabilitation work must be performed. (6) No loan funds shall be disbursed until after the recipient has completed the work, the work has been physically inspected by the City and has been approved by the City Manager and the loan recipient has documented the cost of the work by submitting to the City copies of all bills, invoices, work orders and/or such other documentation showing, to the satisfaction of the City, that the funds requested are reasonable and are supported by actual proof of expense. (7) Loan recipients shall, as a condition of the loan, prominently place a sign upon the property being rehabilitated stating that such rehabilitation has been funded, in part, through the City's landmark rehabilitation loan program. (8) Property owners who have previously received loans shall be eligible for subsequent loans. (9) All rehabilitation work shall be completed within one (1) year from the date upon which the loan was awarded; provided, however, that upon application and a showing of good cause as to why the project cannot be timely completed, the Commission may authorize an extension of up to one (1) additional year for completion of the work. (10) No landmark rehabilitation loan shall be awarded unless the Commission (or in cases of loans exceeding the maximum amounts established herein, the City Council) first determines that: a. The applicant has demonstrated an effort to return the structure to its original appearance; b. It is in the best interests of the public welfare that the structure proposed to be rehabilitated be preserved for future generations; and c. The amount proposed to be spent on exterior rehabilitation is reasonable under the circumstances. (11) No landmark rehabilitation loan shall be awarded unless the loan recipient has, as a condition of obtaining the loan, agreed to repay the loan in full upon sale or transfer of the property. Sec. 14-84. Reserved. Introduced, considered favorably on first reading, and ordered published this 1st day of April, A.D. 2014, and to be presented for final passage on the 15th day of April, A.D. 2014. Packet Pg. 121 Attachment9.2: Ordinance No. 057, 2014 (SR 057-059 Items Historic Preservation Study Code Revisions) 28 __________________________________ Mayor ATTEST: _______________________________ City Clerk Packet Pg. 122 Attachment9.2: Ordinance No. 057, 2014 (SR 057-059 Items Historic Preservation Study Code Revisions) 29 Passed and adopted on final reading on the 15th day of April, A.D. 2014. __________________________________ Mayor ATTEST: _______________________________ City Clerk Packet Pg. 123 Attachment9.2: Ordinance No. 057, 2014 (SR 057-059 Items Historic Preservation Study Code Revisions) - 1 - ORDINANCE NO. 058, 2014 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING SECTION 2-278 OF THE CODE OF THE CITY OF FORT COLLINS PERTAINING TO THE FUNCTIONS OF THE LANDMARK PRESERVATION COMMISSION WHEREAS, the City Council has directed City staff to undertake a two-phase project to consider improvements to the City’s historic preservation codes and processes to make these codes and processes more transparent, predictable and effective; and WHEREAS, City staff has prepared and presented to the City Council the second phase of the work, which addresses City Council’s concerns regarding the readability of the codes, increased flexibility in applying the codes, and better notice of the City’s historic review processes and regulations to the purchasers of historic landmarked properties and properties that are eligible to become landmarks; and WHEREAS, the Landmark Preservation Commission has reviewed the proposed changes as set forth below and has recommended the same to the City Council; and WHEREAS, the City Council has determined that the changes set forth below are in the best interests of the citizens of the City. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that Section 2-278 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 2-278. Functions. (a) The Commission shall perform all duties relating to preservation of historic landmarks as set out in Chapter 14, including the designation of sites, structures, objects or districts as landmarks and the review and approval or rejection of plans for the construction, alteration, demolition or relocation of any such site, structure, object or district. Decisions of the Commission are final unless appealed to the City Council. (b) The Commission shall also perform the following additional functions: (1) To promote awareness and understanding of, and appreciation for, the value of historic resource preservation in contributing to the quality of life in the City, and actively encouraging property owners to voluntarily designate their properties as historic landmarks; (2) To advise the City Council and City staff with regard to the identification and evaluation of historic resources within the Growth Management Area and providing information regarding the significance of the resources, the nature and degree of threat to their preservation, and methods for their protection; Packet Pg. 124 Attachment9.3: Ordinance No. 058, 2014 (SR 057-059 Items Historic Preservation Study Code Revisions) - 2 - (3) To advise the City Council and City staff with regard to appropriate policies, incentives and regulations for encouraging and/or requiring preservation and rehabilitation of historic resources; (4) To coordinate with the various other City boards, commissions and City staff members whose actions may affect the preservation of historic resources in the community; and (5) To establish a committee of its members to provide advice and, if required under Section 2.10.2(H) of the Land Use Code, written recommendations to the owners of eligible historic properties, and of properties located near eligible historic properties, regarding historically appropriate design and site planning for additions, alterations and new construction in the City; provided, however, that any members of such committee who provide such advice or recommendations to property owners under this provision shall refrain from participating in any subsequent decisions of the Commission related to such properties; and (6) To provide advice and written recommendations to the appropriate decision maker and/or administrative body regarding plans for properties containing or adjacent to sites, structures, objects or districts that: (a) have been determined to be individually eligible for local landmark designation or for individual listing in the State or National Registers of Historic Places; (b) are officially designated as a local or state landmark, or are listed on the National Register of Historic Places; or (c) are located within an officially designated historic district or area. (7) To perform such other duties and functions as may be provided by the City Council by ordinance or resolution. (c) In order to better perform the foregoing functions and to coordinate the activities of the Commission with similar activities of other public and private agencies, members of the Commission may be appointed, by majority vote of the Commission, to serve as City representatives on the board of directors of the Historic Fort Collins Development Corporation, the Poudre Landmark Foundation or such other privately funded nonprofit corporations as the Commission may approve that are organized for the primary purpose of furthering the preservation of the community's historic resources. Packet Pg. 125 Attachment9.3: Ordinance No. 058, 2014 (SR 057-059 Items Historic Preservation Study Code Revisions) - 3 - Introduced, considered favorably on first reading, and ordered published this 1st day of April, A.D. 2014, and to be presented for final passage on the 15th day of April, A.D. 2014. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 15th day of April, A.D. 2014. __________________________________ Mayor ATTEST: _______________________________ City Clerk Packet Pg. 126 Attachment9.3: Ordinance No. 058, 2014 (SR 057-059 Items Historic Preservation Study Code Revisions) - 1 - ORDINANCE NO. 059, 2014 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING SECTION 3.4.7 OF THE LAND USE CODE PERTAINING TO NEW CONSTRUCTION AS IT AFFECTS HISTORIC AND CULTURAL RESOURCES WHEREAS, the City Council has directed City staff to undertake a two-phase project to consider improvements to the City’s historic preservation codes and processes to make these codes and processes more transparent, predictable and effective; and WHEREAS, City staff has prepared and presented to the City Council the second phase of the work, which addresses City Council’s concerns regarding the readability of the codes, increased flexibility in applying the codes, and better notice of the City’s historic review processes and regulations to the purchasers of historic landmarked properties and properties that are eligible to become landmarks; and WHEREAS, the Landmark Preservation Commission has reviewed the proposed changes set forth below and has recommended the same to the City Council; and WHEREAS, the City Council has determined that the changes set forth below are in the best interests of the citizens of the City. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that Section 3.4.7 of the Land Use Code is hereby amended to read as follows: 3.4.7 Historic and Cultural Resources (A) Purpose. This Section is intended to ensure that, to the maximum extent feasible: (1) historic sites, structures or objects are preserved and incorporated into the proposed development and any undertaking that may potentially alter the characteristics of the historic property is done in a way that does not adversely affect the integrity or significance of the historic property; and (2) new construction is designed to respect the historic character of the site and any historic properties in the surrounding neighborhood. This Section is intended to protect designated or individually eligible historic sites, structures or objects as well as sites, structures or objects in designated historic districts, whether on or adjacent to the development site. (B) General Standard. If the project contains a site, structure or object that (1) is determined to be or potentially be individually eligible for local landmark designation or for individual listing in the State Register of Historic Properties or National Registers of Historic Places; (2) is officially designated as a local or state landmark, or is listed on the National Register of Historic Places; or (3) is located within an officially designated national, state or City historic district or area, then to the maximum extent feasible, the development plan and building design shall Packet Pg. 127 Attachment9.4: Ordinance No. 059, 2014 (SR 057-059 Items Historic Preservation Study Code Revisions) - 2 - provide for the preservation and adaptive use of the historic structure. The development plan and building design shall protect and enhance the historical and architectural value of any historic property that is: (a) preserved and adaptively used on the development site; or (b) is located on property adjacent to the development site and qualifies under (1), (2) or (3) above. New structures must be compatible with the historic character of any such historic property, whether on the development site or adjacent thereto. (C) Determination of Landmark Eligibility. The determination of individual eligibility or potential individual eligibility for local landmark designation will be made in accordance with the applicable provisions of Chapter 14 of the City Code, except that the determination of potential individual eligibility shall be made by the Director and the finding of potential eligibility shall not constitute a finding of eligibility under Section 14-21 or 14-72 of the City Code. A site, structure or object may be determined to be or potentially be individually eligible for local landmark designation if it meets one (1) or more of the criteria as described in Section 14-5 "Standards for determining the eligibility of sites, structures, objects and districts for designation as Fort Collins Landmarks or Landmark Districts" of the City Code. The determination of individual eligibility for the National or State Register of Historic Places shall be according to the processes and procedures of the Colorado Historical Society. (D) Reuse, Renovation, Alterations and Additions. (1) Original or historic materials and details, as well as distinctive form and scale, that contribute to the historic significance of the structure or neighborhood shall be preserved to the maximum extent feasible. Rehabilitation work shall not destroy the distinguishing quality or character of the structure or its environment. (2) The rehabilitation of structures shall be in conformance with the Secretary of the Interior’s "Standards for Rehabilitation and Guidelines for Rehabilitating Historic Buildings" (available from the Director) or other adopted design guidelines or standards. (E) Demolition. A site, structure or object that is determined to be or potentially be individually eligible for local landmark designation or for individual listing in the State or National Registers of Historic Places may be demolished only if, in the opinion of the decision maker, the applicant has, to the maximum extent feasible, attempted to preserve the site, structure or object in accordance with the standards of this Section, and the preservation of the site, structure or object is not feasible. Packet Pg. 128 Attachment9.4: Ordinance No. 059, 2014 (SR 057-059 Items Historic Preservation Study Code Revisions) - 3 - (F) New Construction. (1) To the maximum extent feasible, the height, setback and/or width of new structures shall be similar to: (a) those of existing historic structures on any block face on which the new structure is located and on any portion of a block face across a local or collector street from the block face on which the new structure is located,; or (b) when a block does not exist, similar to those on any land adjacent to the property on which the new structure is to be located. Notwithstanding the foregoing, this requirement shall not apply if, in the judgment of the decision maker, such historic structures would not be negatively impacted with respect to their historic exterior integrity and significance by reason of the new structure being constructed at a dissimilar height, setback and/or width. Where building setbacks cannot be maintained, elements such as walls, columns, hedges or other screens shall be used to define the edge of the site and maintain alignment. Taller structures or portions of structures shall be located interior to the site. (2) New structures shall be designed to be in character with such existing historic structures. Horizontal elements, such as cornices, windows, moldings and sign bands, shall be aligned with those of such existing historic structures to strengthen the visual ties among buildings. Window patterns of such existing structures (size, height, number) shall be repeated in new construction, and the pattern of the primary building entrance facing the street shall be maintained to the maximum extent feasible. See Figure 6. Figure 6 Building Patterns (3) The dominant building material of such existing historic structures adjacent to or in the immediate vicinity of the proposed structure shall be used as the primary material for new construction. Variety in materials can be appropriate, but shall maintain the existing distribution of materials in the same block. Packet Pg. 129 Attachment9.4: Ordinance No. 059, 2014 (SR 057-059 Items Historic Preservation Study Code Revisions) - 4 - (4) Visual and pedestrian connections between the site and neighborhood focal points, such as a park, school or church, shall be preserved and enhanced, to the maximum extent feasible. (5) To the maximum extent feasible, existing historic and mature landscaping shall be preserved and when additional street tree plantings are proposed, the alignment and spacing of new trees shall match that of the existing trees. (6) In its consideration of the approval of plans for properties containing or adjacent to sites, structures, objects or districts that: (a) have been determined to be or potentially be individually eligible for local landmark designation or for individual listing in the National Register of Historic Places or the State Register of Historic Properties, or (b) are officially designated as a local or state landmark, or are listed on the National Register of Historic Places, or (c) are located within an officially designated National, State or local historic district or area, the decision maker shall receive and consider a written recommendation from the Landmark Preservation Commission unless the Director has issued a written determination that the plans would not have a significant impact on the individual eligibility or potential individual eligibility of the site, structure, object, or district. A determination or recommendation made under this subsection is not appealable to the City Council under Chapter 2 of the City Code. Introduced, considered favorably on first reading, and ordered published this 1st day of April, A.D. 2014, and to be presented for final passage on the 15th day of April, A.D. 2014. __________________________________ Mayor ATTEST: _______________________________ City Clerk Packet Pg. 130 Attachment9.4: Ordinance No. 059, 2014 (SR 057-059 Items Historic Preservation Study Code Revisions) - 5 - Passed and adopted on final reading on the 15th day of April, A.D. 2014. __________________________________ Mayor ATTEST: _______________________________ City Clerk Packet Pg. 131 Attachment9.4: Ordinance No. 059, 2014 (SR 057-059 Items Historic Preservation Study Code Revisions) Agenda Item 10 Item # 10 Page 1 AGENDA ITEM SUMMARY April 15, 2014 City Council STAFF Rita Harris, Chief Deputy City Clerk SUBJECT First Reading of Ordinance No. 060, 2014, Amending the Definition of "Publicly" Contained in Section 12-141 of the City Code Pertaining to the Cultivation of Marijuana. EXECUTIVE SUMMARY The purpose of this item is to amend the definition of "publicly" in Section 12-141 of the City Code as it relates to the cultivation of marijuana so as to conform the definition to that which appears in Section 17-190 relating to offenses involving marijuana. This will correct a mistake in the drafting of Ordinance Nos. 038 and 039, 2014, adopted by Council on Second Reading on March 18, 2014. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION On March 18, 2014, Council adopted on second reading a series of ordinances relating to retail/recreational marijuana. Two of those ordinances -- Ordinance No. 038, 2014, establishing regulations for the consumption and possession of marijuana and prohibiting the transfer or display of marijuana on City-owned property, and Ordinance No. 039, 2014, establishing regulations for the cultivation of marijuana -- contain a definition of "publicly" which should have been identical to one another. However, the phrase "including any place to which the public or a substantial number of the public have access without restriction" inadvertently appeared in Ordinance No. 039, 2014, while other wording was omitted. This Ordinance amends the definition of "publicly" in Section 12-141 of the City Code (adopted via Ordinance No. 039, 2014) to make the definition consistent with the definition contained in Section 17-190 of the City Code (adopted via Ordinance No. 038. 2014). Packet Pg. 132 - 1 - ORDINANCE NO. 060, 2014 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING THE DEFINITION OF “PUBLICLY” CONTAINED IN SECTION 12- 141 OF THE CODE OF THE CITY OF FORT COLLINS PERTAINING TO THE CULTIVATION OF MARIJUANA WHEREAS, on March 18, 2014, the City Council passed and adopted on final reading Ordinance No. 038, 2014 establishing regulations for the consumption and possession of marijuana within the City and prohibiting the transfer or display of marijuana on city-owned property; and WHEREAS, on March 18, 2014, the City Council passed and adopted on final reading Ordinance No. 039, 2014 establishing regulations for the cultivation of marijuana; and WHEREAS, the definition of “publicly” appeared in both ordinances, and those definitions should have been identical to one another, but are not; and WHEREAS, City staff recommends that the definition of “publicly” in Ordinance No. 039, 2014, be amended to make the two definitions identical; and WHEREAS, the City Council has determined that these proposed amendments to the City Code are in the best interests of the City. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that the definition of “Publicly” contained in Section 12-141 of the Code of the City of Fort Collins is hereby amended to read as follows: Publicly shall mean occurring on any publicly owned property, or on any non-residential property that is open to the general public, including, but not limited to, roadways, transportation facilities, offices, retail stores, restaurants, places of amusement, parks, playgrounds, and the common areas of public buildings and facilities. Introduced, considered favorably on first reading, and ordered published this 15th day of April, A.D. 2014, and to be presented for final passage on the 6th day of May, A.D. 2014. __________________________________ Mayor ATTEST: _______________________________ City Clerk Packet Pg. 133 - 2 - Passed and adopted on final reading on the 6th day of May, A.D. 2014. __________________________________ Mayor ATTEST: _______________________________ City Clerk Packet Pg. 134 Agenda Item 11 Item # 11 Page 1 AGENDA ITEM SUMMARY April 15, 2014 City Council STAFF Patrick Rowe, Real Estate Specialist SUBJECT First Reading of Ordinance No. 061, 2014, Authorizing the Mayor to Execute a Deed Conveying 12,391 Square Feet of City-Owned Property to Dillon Companies, Inc. EXECUTIVE SUMMARY The purpose of this Ordinance is to obtain authorization from City Council to convey to Dillon Companies, Inc. a portion of a 1-acre tract of property that was originally acquired from BNSF Railway Company for MAX Bus Rapid Transit (“MAX”) project purposes, but is no longer needed by the Project or the City as a result of a an alternative design that has been developed. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION To accommodate the MAX station located at Drake Road, the City acquired approximately 1-acre of unused railroad property from BNSF Railway Company. The City intended to develop station improvements on the southern portion of this parcel (at Drake Road) and develop MAX exclusive use parking on the remainder. Given the narrow configuration of the acquired railroad property, supplemental acquisitions were necessary from the adjacent property owner, Dillon Companies, Inc., (Dillon) to develop the exclusive use parking. Further, additional acquisitions were needed for other project needs including shared parking. In the course of negotiating with Dillon, a concern was expressed regarding potential impacts to Dillon’s planned future redevelopment of the site. In response, both parties agreed to look at design/alignment alternatives that would address Dillon’s concerns and uphold MAX project objectives. The concluded design resulted in a win-win for both the City and Dillon. The new design resolves Dillon’s redevelopment concerns, and provides the City with exclusive and shared parking that functions in a greatly improved manner and is more proximate to the station. Additionally, the new design provides the same number of exclusive use parking spots and two additional shared parking spots (the new design does not require a separate drive aisle and allows for a more efficient parking configuration). In short, the alternative design shifts the exclusive parking south, off of existing City owned property and locates it on Dillon property that is immediately adjacent to the MAX station. Similarly, the shared parking is also shifted south, and would be located across the drive isle from the exclusive parking (also on Dillon owned property). Please refer to Attachment 2, showing the acquisitions needed for the original proposed alignment versus those that are required by the earlier alternative. MAX Project Staff and Dillon are in agreement on price and terms with regard to the real estate transactions that is necessary for the design alternative and is presently working to conclude a purchase agreement that includes those terms. A key aspect of the negotiated alternative is for the City to convey the unused portion of the 1-acre parcel previously acquired from BNSF Railway Company to Dillon in exchange for Dillon conveying Packet Pg. 135 Agenda Item 11 Item # 11 Page 2 to the City a parcel of property immediately adjacent to the station. Authorization to convey the City Property allows the City to reach a voluntary agreement with Dillon and avoid the prospects of having to pursue the necessary property interests via eminent domain, likely be more costly for the City. FINANCIAL / ECONOMIC IMPACTS The City originally acquired the railroad property in 2012 at a purchase price of approximately $7.50/sq ft. The proposed conveyance is based on a rate of $8.40/sq ft. Authorization to convey the aforementioned City Property allows the City to reach a voluntary agreement with the property owner and avoid the prospects of having to pursue the necessary property interests via eminent domain, likely be more costly for the City. ATTACHMENTS 1. Location map (PDF) 2. Detail map - Drake MAX Dillon Exchange (PDF) Packet Pg. 136 Packet Pg. 137 Attachment11.1: Location map (BRT Authorization to Convey Property to Dillon Companies, Inc.) ¯W Kmart BNSF RAILROAD MASON TRAIL W Drake Rd Bay Rd Max Guideway Redwing Rd Mcclelland Dr Drake Station Original Configuration City of Fort vs. Revised Collins Configuration CITY GEOGRAPHIC These and were map OF not products FORT designed and INFORMATION COLLINS or all intended underlying for general data SYSTEM are use developed by members MAP for use PRODUCTS of the by the public. City The of Fort City Collins makes for no its representation internal purposes or only, warranty dimensions, as to contours, its accuracy, property timeliness, boundaries, or completeness, or placement and of location in particular, of any its map accuracy features in thereon. labeling or THE displaying CITY OF FORT COLLINS PARTICULAR MAKES PURPOSE, NO WARRANTY EXPRESSED OF MERCHANTABILITY OR IMPLIED, WITH OR RESPECT WARRANTY TO THESE FOR FITNESS MAP PRODUCTS OF USE FOR OR THE UNDERLYING FAULTS, and assumes DATA. Any all responsibility users of these of map the use products, thereof, map and applications, further covenants or data, and accepts agrees them to hold AS the IS, City WITH harmless ALL from made and this against information all damage, available. loss, Independent or liability arising verification from any of all use data of contained this map product, herein should in consideration be obtained of by the any City's users having of these liability, products, whether or direct, underlying indirect, data. or consequential, The City disclaims, which and arises shall or not may be arise held from liable these for any map and products all damage, or the loss, use thereof or by any person or entity. Printed: April 09, 2014 ©400Feet 0 200 Path: K:\ArcMapProjects\Operation Services\Real Estate\Maps\Drake MAX Dillon Exchange.mxd Original Exclusive Parking Original Shared Parking Existing City Parcel Conveyance Area - City to Dillon Exclusive Parking - Dillon to City New Shared Parking Separate City Acquisition Packet Pg. 138 Attachment11.2: Detail map - Drake MAX Dillon Exchange (BRT Authorization to Convey Property to Dillon Companies, Inc.) - 1 - ORDINANCE NO. 061, 2014 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE MAYOR TO EXECUTE A DEED CONVEYING 12,391 SQUARE FEET OF CITY-OWNED PROPERTY TO DILLON COMPANIES, INC. WHEREAS, the City has acquired an approximately one-acre strip of land along the west side of the presently existing Kmart store from the BNSF Railway Company for utilization in the development of the MAX Bus Rapid Transit project; and WHEREAS, the owner of the Kmart store, Dillon Companies, Inc. (Dillon) has been in negotiations with the City regarding the development of the MAX station located on the Dillon property at the approximate crossing of the MAX system at Drake Road; and WHEREAS, during these negotiations, the City has developed an alternative design that would allow MAX customers to park at a location much closer to the bus stop than if the one- acre tract acquired from BNSF Railway Company was used for that purpose; and WHEREAS, Dillon is supportive of locating the parking near the bus stop in exchange for the City’s conveyance to Dillon of the 12,391 square foot parcel along the west side of the Kmart store as described on the exhibit to Exhibit “A”, attached hereto and incorporated herein by this reference (the “Property”); and WHEREAS, the proposed conveyance is beneficial to both the City and Dillon in pursuing their respective use of the Property as a retail store and as a bus stop; and WHEREAS, the City Council has determined that the conveyance of the Property to Dillon is in the best interests of the City and that the Mayor is authorized to execute a deed making such conveyance. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that the Mayor is hereby authorized to execute a deed conveying the Property to the Dillon Companies, Inc., using a deed in substantially the form of the Deed of Conveyance attached hereto as Exhibit “A” and incorporated herein by this reference. Packet Pg. 139 - 2 - Introduced, considered favorably on first reading, and ordered published this 15th day of April, A.D. 2014, and to be presented for final passage on the 6th day of May, A.D. 2014. __________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on this 6th day of May, A.D. 2014. __________________________________ Mayor ATTEST: _____________________________ City Clerk Packet Pg. 140 EXHIBIT A Packet Pg. 141 Attachment1: Exhibit A (BRT Authorization to Convey Properties to Dillon Companies, Inc. ORD) Packet Pg. 142 Attachment1: Exhibit A (BRT Authorization to Convey Properties to Dillon Companies, Inc. ORD) Packet Pg. 143 Attachment1: Exhibit A (BRT Authorization to Convey Properties to Dillon Companies, Inc. ORD) Packet Pg. 144 Attachment1: Exhibit A (BRT Authorization to Convey Properties to Dillon Companies, Inc. ORD) Agenda Item 12 Item # 12 Page 1 AGENDA ITEM SUMMARY April 15, 2014 City Council STAFF Helen Matson, Real Estate Services Manager SUBJECT First Reading of Ordinance No. 062, 2014, Vacating a Portion of Street Right-of-Way Dedicated to the City in 1974 as Part of the Kmart Development. EXECUTIVE SUMMARY The purpose of this item is to vacate a portion of dedicated street right-of-way that has not been constructed as a street and is no longer needed for public street purposes. The location of this street right of way is located at the rear of the building at 2505 South College Avenue and east of the railroad tracks. The property owners of 2505 S. College Avenue have requested this vacation. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION In 1974, a deed recorded in Book 1605 at Page 310 dedicated a street right-of-way. The portion to be vacated is not currently constructed as a street and is no longer needed for public street purposes. With the vacation, the City will retain a utility easement. The applicant has ownership of the adjacent land. All public and private utilities were notified for the proposed vacation and they report no objections to the vacation request. PUBLIC OUTREACH A memorandum requesting input was sent to the utility providers and potentially impacted City departments. The adjacent property owner and the person requesting the vacation are the same, so no letters were sent to adjacent property owners. ATTACHMENTS 1. Location Map (PDF) Packet Pg. 145 Packet Pg. 146 Attachment12.1: Location Map (Vacation of Right of Way Behind 2505 S. College Avenue) - 1 - ORDINANCE NO. 062, 2014 OF THE COUNCIL OF THE CITY OF FORT COLLINS VACATING A PORTION OF STREET RIGHT-OF-WAY DEDICATED TO THE CITY IN 1974 AS PART OF THE KMART DEVELOPMENT WHEREAS, in 1974, a deed recorded in Book 1605 at Page 310 of the Larimer County Records dedicated to the City a street right-of-way located at the rear of the building at 2505 South College Avenue (Kmart store) and east of the Burlington Northern Santa Fe railroad tracks; and WHEREAS, a portion of that right-of-way is not currently used as a street and is no longer needed for public street purposes; and WHEREAS, the property owners of 2505 South College Avenue have requested that this portion of the right-of-way be vacated; and WHEREAS, pertinent land owners, City agencies, and private utility companies have been contacted and have reported no objection to the proposed vacation; and WHEREAS, the right of the residents of the City will not be prejudiced or injured by the vacation of said street right-of-way. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that the portion of dedicated street right-of-way located at the rear of the building at 2505 South College Avenue and east of the Burlington Northern Santa Fe railroad tracts, more particularly described on Exhibit "A", attached hereto and incorporated herein by this reference, is hereby vacated, abated and abolished, reserving the same unto the City as a utility easement. Introduced, considered favorably on first reading, and ordered published this 15th day of April, A.D. 2014, and to be presented for final passage on the 6th day of May, A.D. 2014. __________________________________ Mayor ATTEST: _______________________________ City Clerk Packet Pg. 147 - 2 - Passed and adopted on final reading on the 6th day of May, A.D. 2014. __________________________________ Mayor ATTEST: _______________________________ City Clerk Packet Pg. 148 EXHIBIT A Packet Pg. 149 Attachment1: Exhibit A (Vacation of right of way behind 2025 S College ORD) Packet Pg. 150 Attachment1: Exhibit A (Vacation of right of way behind 2025 S College ORD) Agenda Item 13 Item # 13 Page 1 AGENDA ITEM SUMMARY April 15, 2014 City Council STAFF Lindsay Ex, Senior Environmental Planner SUBJECT Resolution No. 2014-030 Renaming Sand Creek Drive to Cross Creek Drive. EXECUTIVE SUMMARY The purpose of this item is to rename Sand Creek Drive to Cross Creek Drive, consistent with the City’s naming policies. Sand Creek Drive is a local street within the Mail Creek Crossing PUD, which is located southeast of the intersection of Kechter Road and South Timberline Road. STAFF RECOMMENDATION Staff recommends adoption of the Resolution. BACKGROUND / DISCUSSION The Mail Creek Crossing PUD was approved by the Larimer County Board of County Commissioners in 2013 and subsequently annexed into the City. In this approval, one street (see Exhibit to Resolution 2014-030), “Sand Creek Drive” is a duplicate in the City’s street system. To correct this duplication, the property owners have requested that the street be renamed to “Cross Creek Drive.” If approved by City Council, renaming Sand Creek Drive to Cross Creek Drive will simplify way-finding for delivery personnel and emergency responders. Packet Pg. 151 - 1 - RESOLUTION 2014-030 OF THE COUNCIL OF THE CITY OF FORT COLLINS RENAMING SAND CREEK DRIVE TO CROSS CREEK DRIVE WHEREAS, in 2013, Mail Creek Crossing PUD was approved by the Larimer County Board of Commissioners and was subsequently annexed into the City; and WHEREAS, Mail Creek Crossing PUD includes a street named “Sand Creek Drive” which duplicates a street in the City’s existing street system; and WHEREAS, in order to correct this duplication, the property owners have requested that the name “Sand Creek Drive” be changed to “Cross Creek Drive” in order to simplify way- finding and for delivery personnel and emergency responders; and WHEREAS, the City Council has determined that it is in the best interests of the City that the name “Sand Creek Drive” be changed to “Cross Creek Drive” in the Mail Creek Crossing PUD. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS that the name “Sand Creek Drive” is hereby changed to “Cross Creek Drive” in the Mail Creek Crossing PUD, as more particularly described on Exhibit “A” attached hereto and incorporated herein by this reference. Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 15th day of April, A.D. 2014. __________________________________ Mayor ATTEST: _____________________________ City Clerk Packet Pg. 152 Bacon Elementary Zephyr Rd Owens Ave Dolan St Chandler St Harvest St Regal Rd Carmichael St C l y m er Ci r W e s t c h a s e R d Sand C r e e k Dr Lodgepole Cr e e k Dr Yellow Creek Dr Chandler Ct Copper Crest Ln Coppervein St Prairie Hill Dr Owl Creek Dr Kiowa Creek Dr Tilden St S Timberline Rd Proposed Street Re-Name: Sand Creek Drive to Cross Creek Drive 1 inch = 400 feet © VICINITY MAP E Harmony Rd S Lemay Ave E Trilby Rd S Timberline Rd Ziegler Rd Kechter Rd Ziegler Rd Proposed "Cross Creek to be re-Drive" named Mail Creek Crossing PUD Packet Pg. 153 Attachment1: Exhibit A (Mail Creek Crossing Street Renaming RESO) Agenda Item 14 Item # 14 Page 1 AGENDA ITEM SUMMARY April 15, 2014 City Council STAFF Wanda Nelson, City Clerk SUBJECT Resolution 2014-031 Making Appointments to Various Boards and Commissions. EXECUTIVE SUMMARY The purpose of this item is to make appointments to the Natural Resources Advisory Board, Water Board, and Youth Advisory Board. Vacancies were created through resignations. STAFF RECOMMENDATION Staff recommends adoption of the Resolution. BACKGROUND / DISCUSSION A vacancy currently exists on the Natural Resources Advisory Board due to the resignation of Justin Shepard. During the annual recruitment period Councilmen Gino Campana and Bob Overbeck recommended applicants and named Rob Cagen as the backup choice in the case of any future vacancy. Councilmen Gino Campana and Bob Overbeck would like to appoint Rob Cagen to fill this vacancy set to expire on December 31, 2015. A vacancy currently exists on the Water Board due to the resignation of Eric Garner. Councilmen Wade Troxell and Bob Overbeck interviewed and are recommending Brett Bovee to fill this vacancy to begin immediately and set to expire on December 31, 2015. A vacancy currently exists on the Youth Advisory Board due to the resignation of Kelsey Henning. Mayor Karen Weitkunat and Councilman Bob Overbeck interviewed and are recommending Suraj Renganathan to fill this vacancy to begin immediately and set to expire on December 31, 2014. Packet Pg. 154 - 1 - RESOLUTION 2014-031 OF THE COUNCIL OF THE CITY OF FORT COLLINS MAKING APPOINTMENTS TO THE NATURAL RESOURCES ADVISORY BOARD, WATER BOARD AND YOUTH ADVISORY BOARD WHEREAS, vacancies currently exist on the Natural Resources Advisory Board, Water Board, and Youth Advisory Board. WHEREAS, the City Council desires to make appointments to fill these vacancies. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS that the following named persons are hereby appointed to fill current vacancies with terms to begin immediately and to expire as set forth after each name. Natural Resources Advisory Board Expiration of Term Rob Cagen December 31, 2015 Water Board Brett Bovee December 31, 2015 Youth Advisory Board Suraj Renganathan December 31, 2014 Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 15th day of April, A.D. 2014. __________________________________ Mayor ATTEST: _____________________________ City Clerk Packet Pg. 155 Agenda Item 9 Item # 9 Page 1 AGENDA ITEM SUMMARY April 1, 2014 City Council STAFF Tyler Siegmund, Civil Engineer SUBJECT First Reading of Ordinance No. 052, 2014, Vacating Scott Avenue Right-of-Way as Dedicated at Book 1174, Page 543 of the Larimer County Records. EXECUTIVE SUMMARY The purpose of this item is to vacate Scott Avenue right-of-way that is no longer necessary or desirable to retain for public street purposes. This location will be the future site of the Scott Plaza development project, which was approved at the Planning and Zoning Board Public Hearing on January 9, 2014. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION In 1962, a 25-foot wide strip of land south of Plum Street between Shields Street and City Park Avenue was dedicated to the City (Book 1174, Page 543), by the adjacent property owner (1201 Plum Street) at no expense to the City, for street right-of-way purposes. The owner of the properties at 813 Scott Avenue, 1201 West Plum Street and 1205 West Plum Street has requested that the City vacate this 25 foot by 335 foot strip of land that is adjacent to the properties. The applicant has requested this vacation because they wish to redevelop their property that is adjacent to Scott Avenue. Scott Avenue is not paved and only provides access to the existing residential units at 813 Scott Avenue and 1201 Plum Street. The existing residential units on 813 Scott Avenue and 1201 Plum Street will be removed as part of the Scott Plaza development proposal. With the vacation of right-of-way, easements for access, emergency access, drainage and utilities would be retained, preserving rights to utilize the vacated portion for these purposes. The Campus West Planning Study Report (December 2001) identifies that a pedestrian or vehicular connection should be provided at this location that, in the future, should extend to Elizabeth Street. Through the development review process it has been determined that a pedestrian connection will provide the desired connectivity that is outlined in the study and will be accommodated by the Scott Plaza development plan and retention of the area as an access easement. At such time that the property to the south redevelops (1220 West Elizabeth Street) the pedestrian connection that is being provided with the Scott Plaza project will be continued south to Elizabeth Street. A memorandum requesting input about the vacation of Scott Avenue was sent to the utility providers, potentially impacted City departments and adjacent property owners. The neighboring property owner at 1113 West Plum Street has expressed opposition to the Scott Avenue right-of-way vacation request. The original right-of-way dedication documents from 1962 have been reviewed and the City believes that the land will return to the property owner that is requesting the vacation. Vacations of public right-of-way are governed by City Code Section 23-115, which provides for an application and review process prior to submission to the City Council for formal consideration. The process includes review by potentially affected utility agencies, City staff, emergency service providers, and affected property Packet Pg. 157 Attachment15.1: Copy of First Reading Agenda Item Summary, April 1, 2014 (SR 052 Scott Avenue Right-of-Way Vacation) Agenda Item 9 Item # 9 Page 2 owners in the vicinity of the right-of-way proposed to be vacated. This review process was followed in conjunction with review of the Scott Plaza Project Development Plan, and based on comments received; the Planning Development and Transportation Director recommends that the vacation be approved. FINANCIAL / ECONOMIC IMPACT There are no financial impacts to the vacation of this portion right-of-way. ENVIRONMENTAL IMPACTS There are no environmental impacts to the vacation of this portion of right of way. PUBLIC OUTREACH A memorandum requesting input was sent to the utility providers, potentially impacted City departments and adjacent property owners and feedback was received. ATTACHMENTS 1. Location map (PDF) Packet Pg. 158 Attachment15.1: Copy of First Reading Agenda Item Summary, April 1, 2014 (SR 052 Scott Avenue Right-of-Way Vacation) Packet Pg. 159 Attachment15.2: Location Map (SR 052 Scott Avenue Right-of-Way Vacation) 1 Overall Vicinity Map Packet Pg. 160 Attachment15.3: Powerpoint (SR 052 Scott Avenue Right-of-Way Vacation) 2 Existing Scott Avenue • Looking south from Plum Street Packet Pg. 161 Attachment15.3: Powerpoint (SR 052 Scott Avenue Right-of-Way Vacation) 3 Existing Scott Avenue Packet Pg. 162 Attachment15.3: Powerpoint (SR 052 Scott Avenue Right-of-Way Vacation) 4 Scott Plaza Development Site Plan Packet Pg. 163 Attachment15.3: Powerpoint (SR 052 Scott Avenue Right-of-Way Vacation) 5 Scott Plaza Development Plan Packet Pg. 164 Attachment15.3: Powerpoint (SR 052 Scott Avenue Right-of-Way Vacation) 6 Public Outreach • August 7, 2013- Notice of neighborhood meeting for the Scott Plaza Development Plan • December 23, 2013- Notice of Planning and Zoning Board Hearing for the Scott Plaza Development Plan – Expanded notification area – Vacation of Scott Avenue identified in the notice • January 29, 2014- Notice to adjacent property owners regarding the request to vacate Scott Avenue Packet Pg. 165 Attachment15.3: Powerpoint (SR 052 Scott Avenue Right-of-Way Vacation) 7 Scott Plaza Notification Area Packet Pg. 166 Attachment15.3: Powerpoint (SR 052 Scott Avenue Right-of-Way Vacation) - 1 - ORDINANCE NO. 052, 2014 OF THE COUNCIL OF THE CITY OF FORT COLLINS VACATING SCOTT AVENUE RIGHT-OF-WAY AS DEDICATED AT BOOK 1174, PAGE 543 OF THE LARIMER COUNTY RECORDS WHEREAS, by deed recorded in Book 1174, at Page 543 of the Larimer County Colorado Records, a right-of-way was dedicated to the public for Scott Avenue; and WHEREAS, Scott Plaza, LLC has requested that the City vacate this public right-of-way; and WHEREAS, said portion of right-of-way is no longer necessary or desirable to retain for street purposes; and WHEREAS, City agencies and private utility companies have been contacted and have reported no objection to the proposed vacation, provided that an access easement, utility easement, and emergency access easement be reserved unto the City; and WHEREAS, the right of the residents of the City will not be prejudiced or injured by the vacation of said street right-of-way. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that the Scott Avenue street right-of-way, more particularly described on Exhibit "A", attached hereto and incorporated herein by this reference, is hereby vacated, abated and abolished; provided, however, that: 1) this vacation shall not take effect until this Ordinance is recorded by the City Clerk with the Larimer County Clerk and Recorder; and 2) this Ordinance shall be recorded by the City Clerk concurrently with the recording of the subdivision plat for the development known as “Scott Plaza”; and 3) if this Ordinance is not so recorded by January 9, 2017, then this Ordinance shall become null and void and of no force and effect. Packet Pg. 167 Attachment15.4: Ordinance No. 052, 2014 (SR 052 Scott Avenue Right-of-Way Vacation) - 2 - Introduced, considered favorably on first reading, and ordered published this 1st day of April, A.D. 2014, and to be presented for final passage on the 15th day of April, A.D. 2014. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 15th day of April, A.D. 2014. __________________________________ Mayor ATTEST: _______________________________ City Clerk Packet Pg. 168 Attachment15.4: Ordinance No. 052, 2014 (SR 052 Scott Avenue Right-of-Way Vacation) Packet Pg. 169 Attachment15.4: Ordinance No. 052, 2014 (SR 052 Scott Avenue Right-of-Way Vacation) Packet Pg. 170 Attachment15.4: Ordinance No. 052, 2014 (SR 052 Scott Avenue Right-of-Way Vacation) Agenda Item 16 Item # 16 Page 1 AGENDA ITEM SUMMARY April 15, 2014 City Council STAFF Dan Weinheimer, Policy & Project Manager Kelly DiMartino, Assistant City Manager Mike Calhoon, Parks Supervisor SUBJECT First Reading of Ordinance No. 063, 2014, Appropriating Prior Year Reserves in the General Fund to Fund Enhancements to the Fort Collins West Nile Virus Management Program for the 2014 Season. EXECUTIVE SUMMARY The purpose of this item is to appropriate funds to execute the City's West Nile Virus Management Program. Additional funds are sought to enhance the public outreach program, to increase the City's larval control boundary and to allow for a more flexible larval control season. In total, funds requested add $75,100 to the program budget. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION This budget appropriation would fund public education and outreach materials as well as larval management for the City's West Nile Virus Management Program. The additional funds support education and mitigation efforts aimed at reducing the likelihood for a pesticide application. Fort Collins' West Nile Virus Management Program uses an integrated pest management (IPM) approach which prioritizes steps that reduce the use of pesticides. The City's program emphasizes education and public information, source reduction on public and private property, and larval management ahead of a pesticide application. This appropriation reflects consensus items from the City's West Nile Virus Technical Advisor Committee (TAC) which has met from December through April, discussing ways to improve the operation of the City's program. In addition to the two areas of budget appropriation, the 2014 season will also include additional source reduction measures in cooperation with City staff groups - backyard inspections, planning and zoning, and Utilities - and with County and CSU Extension staff. The education and outreach appropriation is $17,500 and will enhance the current program. The budget enhancements will allow the City to promote its message, develop additional outreach tools and to extend when outreach could occur. It is hoped that this approach will help improve community members' understanding of the risks associated with West Nile virus and the personal protection steps individuals can take. Staff also expects to develop a video series explaining elements of the City's program and to maintain a program manual to further explain the City's program. Larval management is a proven mosquito management approach. The City contracts with Colorado Mosquito Control (CMC) to conduct West Nile virus management, including larval and adult mosquito control. The current larval program is conducted both within City limits and a boundary extending about one (1) mile to the east outside of Fort Collins. The current season for larval management is limited by the program budget to Packet Pg. 171 Agenda Item 16 Item # 16 Page 2 June 1 to August 31. This budget appropriation will extend the boundary of larval management outside of Fort Collins' borders from one mile to approximately two to three miles. The appropriation would also fund a more flexible larval management season by allowing extension to April through September. Extending the season provides flexibility to address weather and other observed or anticipated mosquito season conditions. The amount requested in this appropriation for larval control is $23,500 and $34,100 to extend the season. Staff expects to bring additional enhancements to improve the efficacy of the City's West Nile Virus Management Program to Council at the May 6 regular Council meeting. ENVIRONMENTAL IMPACTS Applying a pesticide in some or all of Fort Collins represents an environmental impact. This budget appropriation is anticipated to reduce the likelihood of an adulticide application. The larval control product used is deemed to have a low environmental impact but it does reduce the abundance of mosquito larvae which has a cascading impact on species which feed upon larvae and adult mosquitos. BOARD / COMMISSION RECOMMENDATION Staff has presented the 2014 season recommendations to the Parks and Recreation Board, Air Quality Advisory Board and to the Natural Resources Advisory Board for comment. PUBLIC OUTREACH The recommended budget enhancements are the consensus recommendations of the West Nile Virus Technical Advisory Committee (TAC). The TAC is a group of citizens that have volunteered their time and expertise to review the City's program. TAC members include representatives of the Air Quality Advisory Board, Natural Resources Advisory Board, CSU scientists, a representative from urban agriculture, a representative of the pesticide sensitive registry, and the Larimer County Public Health Director. The TAC held seven (7) public meetings from December to April, discussing the West Nile Virus Program Response Guidelines and the issue of adulticide applications. ATTACHMENTS 1. Larval Program Enhancements to City of Fort Collins Mosquito Control (PDF) 2. 2014WNV Communication description (PDF) 3. Powerpoint presentation (PDF) Packet Pg. 172 Project Title: Mosquito Control Services Contractor: Colorado Mosquito Control, Inc. 1. Expanded Environmentally Driven Inspection and Larvciding Program. CMC will inspect larval sites within the service area for the City of Fort Collins for vectors of West Nile Virus. CMC will apply larvicides to control the development of larval Cx. spp. mosquitoes…..…$ 7,500 in April $ 12,500 in May $ 14,100 in September 2. CMC will increase the larval control area an additional 1-2 miles beyond city limits. This will bring the total square miles of the larval control area to 120. CMC will map new larval sites and perform inspection and larviciding applications at new habitats once a week to control larval Cx. spp. mosquitoes …………………….. $23,000 Packet Pg. 173 Attachment16.1: Larval Program Enhancements to City of Fort Collins Mosquito Control (West Nile Virus Management 2014 Season 2014 West Nile Virus Management: Public outreach program Enhancement Total: $17,500 Goal: Communicate risks associated with contracting West Nile virus Inform public about personal protection Communicate with hard-to-reach and at-risk populations Existing public outreach includes things like: Fcgov.com/westnile updates Spotlights online Utility bill inserts Door hangers Cable 14 bulletins Press releases Social media (Facebook, Twitter, NextDoor) Email and phone notification 2014 Communication enhancements (in addition to existing communication efforts): • Paid announcements • Educational video series • Posters, signs & banners • Event booths • Radio spots • Bus ads • Facebook ads • Billboards Packet Pg. 174 Attachment16.2: 2014WNV Communication description (West Nile Virus Management 2014 Season Appropriation) 1 1 West Nile Virus Management Plan 2014 Appropriation April 15, 2014 2 Ordinance No. 063, 2014 • Appropriate prior year reserves to fund enhancements • Funds enhance communication and larval control • Total 2014 appropriation: $75,100 • Enhancements will continue into 2015-16 WNV budget Packet Pg. 175 Attachment16.3: Powerpoint presentation (West Nile Virus Management 2014 Season Appropriation) 2 3 West Nile Virus Program Purpose “Reduce the risk of human WNV infection while limiting adverse human health and environmental impacts.” -- West Nile Virus Management Policy Adopted July 1, 2008 4 Integrated Pest Management (IPM) • Provide a wide range of public outreach and education • Extensive ongoing mosquito populations data collection and monitoring, including WNV testing • Aggressive larval control program focusing on Culex mosquitoes • Periodic review to ensure program efficacy Packet Pg. 176 Attachment16.3: Powerpoint presentation (West Nile Virus Management 2014 Season Appropriation) 3 5 Communication Enhancements: • Paid announcements • Educational video series • Posters, signs & banners • Event booths • Radio spots • Bus ads • Facebook ads • Billboards 6 Larval Management Enhancements: • Expand boundary of larval control program • Return to a weather based larval program Packet Pg. 177 Attachment16.3: Powerpoint presentation (West Nile Virus Management 2014 Season Appropriation) 4 7 Source Reduction Enhancements: • Education of City employees: – Water auditors – Planning department – Parks and Natural Areas employees • County inspectors • CSU Extension-assistance with agricultural watering practices 8 Proposed 2014 Budget Enhancements • Communication: $17,500 • Larval Management: – New inspection and applications $23,500 – Expand existing program $34,100 • Existing program budget: $236,497 • Total new program: $311,597 Packet Pg. 178 Attachment16.3: Powerpoint presentation (West Nile Virus Management 2014 Season Appropriation) - 1 - ORDINANCE NO. 063, 2014 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING PRIOR YEAR RESERVES IN THE GENERAL FUND TO FUND ENHANCEMENTS TO THE FORT COLLINS WEST NILE VIRUS MANAGEMENT PROGRAM FOR THE 2014 SEASON WHEREAS, the Fort Collins West Nile Virus Management Program (the “Program”) emphasizes education and public information, source reduction on public and private property, and larval management ahead of a pesticide application; and WHEREAS, larval management is a proven mosquito management approach that is currently conducted within the City’s limits and a boundary extending about one mile to the east outside of the City; and WHEREAS, the current season for larval management is limited to June 1st to August 31st based on the current Program’s budget; and WHEREAS, additional funds are needed by the Program to further enhance the public outreach and education, to increase the City’s larval control boundary, and to allow for a more flexible larval control season; and WHEREAS, staff is requesting an appropriation in the amount of $75,100 from prior year reserves in the General Fund for the Program in 2014; and WHEREAS, the appropriation will fund items that the City’s West Nile Virus Technical Advisor Committee has recommended to improve the operation of the Program; and WHEREAS, the funds would enhance public education and outreach through developing additional tools to communicate and foster public understanding of the risks of the West Nile Virus and benefits of personal protection; and WHEREAS, the funds would also allow for the larval management area to be expanded by an additional one to two miles and the larval management season to be extended to the period from April through September, so as to better address weather and anticipated mosquito season conditions; and WHEREAS, Article V, Section 9, of the City Charter permits the City Council to appropriate by ordinance at any time during the fiscal year such funds for expenditure as may be available from reserves accumulated in prior years, notwithstanding that such reserves were not previously appropriated. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that there is hereby appropriated for expenditure from reserves in the General Fund the sum of SEVENTY FIVE THOUSAND ONE HUNDRED DOLLARS ($75,100) to fund enhancements to the City’s West Nile Virus Management Program in 2014. Packet Pg. 179 - 2 - Introduced, considered favorably on first reading, and ordered published this 15th day of April, A.D. 2014, and to be presented for final passage on the 6th day of May, A.D. 2014. _________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on the 6th day of May, A.D. 2014. _________________________________ Mayor ATTEST: _____________________________ City Clerk Packet Pg. 180 Agenda Item 17 Item # 17 Page 1 AGENDA ITEM SUMMARY April 15, 2014 City Council STAFF Darin Atteberry, City Manager Mike Beckstead, Chief Financial Officer SUBJECT Resolution 2014-032 Approving an Amendment to the Redevelopment and Reimbursement Agreement with the Fort Collins Urban Renewal Authority, Walton Foothills Holdings VI, L.L.C. and the Foothills Metropolitan District Regarding the Redevelopment of Foothills Mall. EXECUTIVE SUMMARY The purpose of this item is to amend the Foothills Mall Redevelopment Agreement. The Developer has asked to amend Section 3.1 – Conditions Precedent to Issuance of District Bonds of the Agreement, to allow the Metro District Bonds to be issued with 155k square feet of executed leases vs. the 240k square feet required in the current agreement. The Developer is also asking for clarification to Section 4.3 – Construction of Residential Component of Project: Affordable Housing, concerning the period of time the Developer may be required to make payments to the City if there is a delay in the completion of the residential units. STAFF RECOMMENDATION Staff recommends adoption of the Resolution. BACKGROUND / DISCUSSION Amendment to Section 3.1(c) Section 3.1 - Conditions Precedent to Issuance of District Bonds was included in the agreement to provide the City assurance that prior to the City granting authorization to the District to issue the bonds that the project financing is in place and all project approvals have been received. Section 3.1 details 7 conditions that must be met by the Developer prior to the issuance of the District Bonds. The seven conditions are summarized below: a. District Financing Plan approved by the City Manager. b. Provide evidence that the Developer has obtained all equity and private financing necessary to construct the non-residential components of the Project. c. Obtain 240k square feet of executed leased space with 120k square feet of tenants new to Fort Collins at an average sales per square foot of $375. d. Add-On PIF imposed in accordance with Section 4.7. e. Obtain all Development Approvals for the Project. f. Satisfactory opinion by District’s bond counsel. g. No event of default shall have occurred. The Developer has indicated they are prepared to meet 6 of these conditions and are requesting a modification to 3.1(c), concerning the square footage of lease space required before issuance. The Developer currently has approximately 90k square feet of leases executed and anticipates having approximately 195k square feet leased by May 2014. A combination of factors has negatively impacted the current volume of executed leases: Packet Pg. 181 Agenda Item 17 Item # 17 Page 2 1. The delay from an anticipated 2014 opening to a 2015 opening. 2. Timing uncertainty of the 2015 opening until the Redevelopment Agreement was signed in January of 2014. 3. A leasing strategy that focuses on critical retailers first, who once signed, will attract other quality retailers. 4. Retailers are currently focused on leases for 2014 openings and will focus on leases to support 2015 openings later in this year. The Developer has requested an amendment to the agreement that would allow for the issuance of District bonds with 155k square feet leased including 90k square feet of tenants new to Fort Collins. However, only $23M of the $53M of bond proceeds would be released to the project. The remaining $30M of bond proceeds would be held in escrow by the Bond Trustee and would only be released in tranches to the project as additional leases are executed by the developer. Table A Lease Space Sq Ft Funds Released Percent of… Tranche Total New to Fort Collins Funds Released Assigned to City Improv Orig 240k Mall (less Macy's) Current 240k 120k $ 53 $ 8 100% 47% Request 1 155k 90k $ 23 $ 3 65% 30% 2 205k 120k 33 1 85% 40% 3 255k 130k 43 2 106% 50% 4 310k 150k 53 2 129% 60% Table A details the additional square feet of executed leases required by the developer to receive additional funding. As each 50k of additional leases are executed, combined with a corresponding increase in leases associated with tenants new to Fort Collins, funding will be released by the Bond Trustee in increments of $10M. In comparison to the original agreement, the Developer must now obtain 310k square feet of executed leases (60% of the total Mall) before all funds are made available (vs. 240k square feet (47% of the total Mall) in the original agreement). The amount of leased space to tenants new to Fort Collins has also increased from 120k to 150k. In addition, a portion of each tranche released would be assigned to the Underpass and Foothills Activity Center portion of the project. Waiting until the developer has obtained the required 240k square feet of leased space prior to the issuance of the bonds could have multiple adverse effects on the project: 1. The equity partner and the construction financier require all funding be closed simultaneously. A delay in the issuance of the District Bonds will delay the closing on the construction financing. 2. A delay in the close of the project financing opens the possibility of rising interest rates adding significant cost to the project. 3. Construction timing is critical, a delay of several weeks in closing all financing will delay construction start-up which in turn will delay the opening in 2015. 4. A delay in the 2015 mall opening will void current executed leases which specify a 2015 opening. 5. A delay in the 2015 mall opening will put at risk other interested retailers given the projects timing uncertainty. Some of these retailers may elect to locate elsewhere within the northern Colorado region and be lost to the Mall project indefinitely. Packet Pg. 182 Agenda Item 17 Item # 17 Page 3 The Developer’s Equity Partner has agreed to provide additional security and financing to support the project and maintain the current timeline. Current equity investment in the project is approximately $57M and will most likely increase by the time all financing is closed. This is 40% to 50% higher than their original intentions. In addition, the Equity Partner has agreed to provide 100% recourse vs. the normal 50% recourse on the $100M plus construction loan. Both actions demonstrate confidence in the project. Risks and Implications Associated with the Amendment to Section 3.1(c): Risks and implications associated with the amendment vary by party associated with the agreement. Risks revolve around what can be described as “Start-Up Risk”. Start-Up Risk can be defined as the bonds are issued but something catastrophic occurs that prevents the mall from being completed and fully leased out. City Risk/Implications – In the event the bonds are issued and the mall is not completed, there is no financial obligation on the part of the City beyond the pledge of Sales Tax Increment from sales at the Mall. Issuing the bonds with 155k vs. 240k square feet of leased space does not increase financial risk to the City. The structure of financing was intentionally set up to issue the bonds via the Metro District, avoid creating a debt obligation on the part of the City and allow the City to avoid the Start-Up Risk. Interest Rate Risk – Current macro-economic indicators point to a rising interest rate environment in the near term. A delay in the issuance of the bonds in a rising rate environment could have a significant impact on the financing cost of the project. A 1% increase in interest rates on the bonds (all else held constant) would require an additional $17M of Sales Tax Increment from the URA to meet the bond payments. The Developer would also potentially experience additional financing costs associated with the construction loan. Developer Risk/Implications – The Developer will not have a financial gain with the proposed amendment. The benefit to the Developer is the project would proceed on the current planned timeline without the adverse impact of the effects of a delay described above. Metro District Risk/Implications - The risk to the District is related to Start-Up Risk and when such an event occurred relative to the square footage of executed leases. If an event occurred after 240k square feet of leases are executed, in the current agreement, all $72M of bonds would be issued and outstanding. In the amended agreement, only $33M of the bond proceeds would have been disbursed and the remaining $20M of proceeds would be available for an extraordinary redemption of outstanding bonds, thereby reducing the future obligations of the District. If the event occurred prior to the Developer achieving 255k square feet of executed leases, the amended agreement would be beneficial to the District. If such an event occurred after 310k square feet of executed leases were obtained, there is no difference between the two alternatives. If an event occurred after 155k square feet of leases were executed but before 240k square feet of leases were executed, in the current agreement, no bonds would have been issued. In the amended agreement, $23M to $33M of the bond proceeds would have been disbursed and the remaining $20M to $30M of proceeds would be available for an extraordinary redemption of the outstanding bonds. There is risk in the amended agreement during the time it takes the Developer to move from 155k to 240k square feet of leased space. Again, there is no financial risk to the City in this case. This risk can be evaluated based on two factors – probability and severity. The probability of an event occurring during the 4-6 months it will take the Developer to acquire the 240k square feet of leases vs. the 155k square feet of leases is very low. The severity could be high. Approximately $41M of bonds would be outstanding plus additional capitalized interest would be incurred if $30M of proceeds were used for an early redemption. The Start-Up Risk exists with the current agreement and with the amended agreement, the difference relates to whether an event would occur during the next 4-6 months that would ultimately cause the Bonds to not be issued. Because (1) there is no added risk to the City, (2) the risk to the District is not significantly different between authorizing bonds with 240k of leased space vs. authorizing bonds with 155k of lease space and putting funds in escrow that can only be fully released once 310k of space is leased,( 3) the risk of delay to the construction Packet Pg. 183 Agenda Item 17 Item # 17 Page 4 timeline would most likely adversely impact the projects lease opportunities and completion dates, and 4) potential higher interest rates with a late 2014 issuance would require additional sales tax increment to cover bond payments, staff recommends making the requested modifications to the agreement. Amendment to Section 4.3 Section 4.3 – Construction of Residential Component of Project: Affordable Housing. of the agreement was intended to provide a partial offset to lost residential property tax increment in the event the developer does not meet the construction completion dates described in section 4.3. The 50% payments of the lost property tax revenue by the developer was intended to only be in effect until the residential units are completed and property tax revenue begins to flow to the URA and then to the Metro District. The current wording in the agreement has been questioned by the District bond council, who interpret the current wording to require the developer to continue making the 50% payments after the residential units are complete if the original construction completion dates in the agreement are not met. Staff concurs this was not the intent of this section and agree clarification is needed to indicate the 50% payment is only required if the construction completion dates within the agreement are not met and only until the residential units are complete and tax revenue is realized by the Metro District. The Council Finance Committee will review this on Friday, April 11. Draft minutes from that meeting will be provided in the read-before packet on Tuesday, April 15. FINANCIAL / ECONOMIC IMPACTS Financial impacts are covered within the Risk/Implications section above. ATTACHMENTS 1. First Amendment to Revdevelopment and Reimbursement Agreement-Redline version (DOCX) 2. Powerpoint presentation (PDF) Packet Pg. 184 1 FIRST AMENDMENT TO REDEVELOPMENT AND REIMBURSEMENT AGREEMENT THIS FIRST AMENDMENT TO REDEVELOPMENT AND REIMBURSEMENT AGREEMENT (the “Amendment”) dated as of April __, 2014, is made by and among the FORT COLLINS URBAN RENEWAL AUTHORITY, a body corporate and politic of the State of Colorado (the “Authority”), WALTON FOOTHILLS HOLDINGS VI, L.L.C., a Delaware limited liability company (the “Developer”), the CITY OF FORT COLLINS, COLORADO, a municipal corporation (the “City”), and FOOTHILLS METROPOLITAN DISTRICT, a quasi- municipal corporation organized and existing in accordance with Title 32, Article 1, C.R.S. (the “District”). The Authority, the Developer, the City and the District are sometimes collectively called the “Parties,” and individually, a “Party.” RECITALS WHEREAS, on January 17, 2014, the Parties entered into that certain Redevelopment and Reimbursement Agreement (the “Agreement”); and WHEREAS, the Developer has requested an amendment to the Agreement that would change one condition precedent to the issuance of District Bonds so as to allow their issuance upon the Developer’s having leased 155,000 square feet, 90,000 of which must to be tenants new to Fort Collins, rather than the currently required 240,000 square feet; and WHEREAS, as a condition of agreeing to this change, the Developer has agreed to certain restrictions on the release of a portion of the District Bond proceeds to tie their release to additional leasing performance; and WHEREAS, in addition, the Parties have determined that certain other clarifications to the language of the Agreement will be mutually beneficial. NOW THEREFORE, in consideration of the mutual covenants and promises of the Parties contained in this Agreement, and other valuable consideration, the receipt and adequacy of which are acknowledged, the Parties agree to the terms and conditions in this Agreement. AGREEMENT 1. DEFINED TERMS AND RECITALS INCORPORATED. All terms used in this Amendment and defined in the Agreement shall have the meanings ascribed to them in the Agreement, except as otherwise expressly provided herein. All recitals set forth in the Agreement and in this Amendment, above, are incorporated into the Agreement as amended by this Amendment as though fully set forth in the body hereof. Packet Pg. 185 Attachment17.1: First Amendment to Revdevelopment and Reimbursement Agreement-Redline version (Foothills Mall Agreement Revision) 2 2. DEFINITION ADDED. Section 1 of the Agreement is amendment to add a definition of the term “Tenant New to Fort Collins”, as follows: “Tenant New to Fort Collins” means any tenant other than a tenant that is relocating to the Project an existing business that was operating under a City of Fort Collins sales tax license as of the date of the Agreement or this Amendment. 3. AMENDMENT TO SECTION 3.1. Section 3.1 of the Agreement is hereby amended to read as follows: 3.1 Conditions Precedent to Issuance of District Bonds. The following conditions shall be satisfied on or prior to the issuance of the District Bonds: (a) The Developer and the District shall prepare the Financing Plan and the City Manager and the Executive Director of the Authority shall have approved the Financing Plan. The Financing Plan shall also be in form and substance satisfactory to the District’s bond counsel and the underwriter of the District Bonds. The Financing Plan shall demonstrate that there is expected to be sufficient Pledged Revenues derived from the construction of the Project to pay the debt service requirements on the District Bonds when due. (b) The Developer shall provide to the City Manager the following evidence satisfactory to the City Manager that the Developer has obtained all equity and private financing necessary to construct the non-residential components of the Project: (1) Developer shall certify that it has expended no less than $57 million on the Project, representing the Developer’s equity commitment as of the closing of the District Bonds; and (2) Developer shall demonstrate that it has a closed construction loan with a commitment from the construction lender to fund an amount not less than the difference between the construction costs of the Project and the total of the net bond proceeds and the Developer’s equity commitment described in Section 3.1(b)(1), which construction loan shall provide recourse for one hundred percent (100%) of the loan amount against an entity (or entities) that own(s) substantially all of and controls(s) the Developer. Such recourse may be subject to decreases over time as certain financial tests and leasing tests are achieved. The City’s Financial Officer and City Attorney (or their delegates) shall be entitled to review the loan agreement and related documents, including, but not limited to, any promissory note and all related guarantees and deeds of trust, to verify compliance with this requirement. (c) The Developer shall have obtained executed lease agreements, excluding the existing department store located on Larimer County Parcel Number 9725391002, Packet Pg. 186 Attachment17.1: First Amendment to Revdevelopment and Reimbursement Agreement-Redline version (Foothills Mall Agreement Revision) 3 totaling at least 240,000155,000 square footage of the retail area of the Project with tenants that, in the aggregate, have an average sales per square foot of at least $375 based on average national sales performance, and, except as hereinafter provided, of which at least 90,000120,000 square feet shall be leased to Tenants New to the City of Fort Collins. Notwithstanding the foregoing, however, in the event that at least 60,000 of such square footage is leased to tenants that are new to Fort Collins, then this minimum requirement of 120,000 square feet shall be deemed satisfied with the prior written consent of the City Manager, which consent shall not be unreasonably withheld, conditioned or delayed, provided that in determining whether to give such consent the City Manager may consider the impact on the proposed financing from a reduced percentage of tenants new to the City. The Developer shall certify to the City upon the City’s request that the conditions of this Subsection (c), excluding verification of the sales per square foot requirement, have been met in full. (d) The Developer shall have imposed the Add-On PIF in accordance with Section 4.7 hereof. (e) The Developer shall have obtained the Development Approvals for the Project, as described in this Agreement and in Exhibit C. (f) The City and the Authority shall receive an opinion of the District’s bond counsel that the District Bonds have been validly issued and opining as to the tax-exempt status of the bonds, which opinion shall be addressed to the City and the Authority, or the City and the Authority shall receive a reliance letter from the District’s bond counsel. (g) No Event of Default hereunder shall have occurred and be continuing hereunder, unless such Event of Default has been cured, remedied or waived, or a remedy has been agreed upon by the Parties which will become effective with the passage of time. 4. AMENDMENT TO SECTION 3.2. Section 3.2 is hereby amended to read as follows: 3.2 Provisions to be Included in District Bond Documents. The District Bond Documents shall contain the following provisions: (a) The District Bonds shall be payable from the Pledged Revenues in the following order of priority: (i) the District Debt Service Mill Levy Revenues; (ii) the Pledged District Specific Ownership Taxes; (iii) the Pledged Property Tax Increment Revenues; (iv) the Add-On PIF Revenues; and Packet Pg. 187 Attachment17.1: First Amendment to Revdevelopment and Reimbursement Agreement-Redline version (Foothills Mall Agreement Revision) 4 (iii) the Pledged Sales Tax Increment Revenues. (b) The District Bond proceeds may only be made available to the District in tranches, upon the achievement by Developer of threshold requirements for executed leases for tenants as set forth in the table below. The parties acknowledge that, as provided in Section 3.1(c) above, attainment of the threshold for the first such tranche is a condition precedent of issuance of the District Bonds. As to tranches 1, 2 and 3 only, the tenants comprising the required threshold shall have an average sales per square foot of at least $375 in the aggregate based on average national sales. A portion of each tranche shall be allocated to the Underpass and Foothills Activity Center improvements as set forth in the table below. The balance of the available proceeds within each tranche may be spent without restriction, except as otherwise set forth in this Agreement. (c) If, on the third anniversary date of the issuance of the District Bonds, any portion of the District Bond proceeds that has not been disbursed as a result of failure to meet one or more leasing thresholds described in Section 3.2(b), then the remaining undisbursed proceeds shall be used to carry out the mandatory extraordinary redemption of a corresponding portion of the District Bonds. (bd) After the debt service requirements on the District Bonds have been paid or provided for in each Fiscal Year, and after all payments have been made to replenish the reserve fund for the District Bonds and to make any payments into any required rebate funds for the District Bonds, any excess Pledged Revenues shall be applied by the District Bond Trustee as follows: 5. AMENDMENT TO SECTION 4.1. Section 4.1 is hereby amended to read as follows: Tranche Cumulative Total Square Feet of Executed Lease Agreements Total Amount of Bond Proceeds Disbursed in Tranche Cumulative Total Amount of Bond Proceeds Disbursed Minimum Bond Proceeds for Underpass and Foothills Activity Center (FAC) 1 155,000 $23M $23M $3M (Underpass) 2 205,000 $10M $33M $1M (FAC) 3 255,000 $10M $43M $2M (FAC) 4 310,000 $10M $53M $2M (FAC) Packet Pg. 188 Attachment17.1: First Amendment to Revdevelopment and Reimbursement Agreement-Redline version (Foothills Mall Agreement Revision) 5 4.1 Construction of Project. As set forth in Section 2.1 hereof, the Developer and/or the District shall construct the Project. The Project shall be constructed substantially in accordance with the Development Approvals and Exhibit C attached hereto. Additionally, as construction proceeds on the Project, Developer shall comply with the following requirements. (a) Developer shall provide a monthly written status report to the City regarding the status of construction of the Project with respect to the overall schedule. The City acknowledges that Developer has identified or may identify certain information contained in such reports as confidential, proprietary business information. The City agrees that it will maintain the confidentiality of such information except as required by applicable law. If the City is requested to disclose information identified by Developer as confidential and if the City believes it is legally required to make disclosure of such information, the City will notify Developer at least two business days prior to making such disclosure, so as to permit Developer to propose appropriate redactions or seek a judicial declaration preventing disclosure. The Developer shall reimburse the City for any attorneys’ fees or costs incurred by the City or that the City is ordered to pay in connection with such proceedings. (b) Developer shall certify to the City prior to the release of each tranche of District Bond proceeds as set forth in Section 3.2(b) that the total square footage of leases to Tenants New to Fort Collins meets the minimum threshold for such tranche as set forth in the table below: Tranche Total Square Feet of Executed Lease Agreements Total Leasing to Tenants New to Fort Collins 1 155,000 90,000 2 205,000 110,000 3 255,000 130,000 4 310,000 150,000 (c) Developer shall also provide monthly reports to the City which include the following information: (i) the percentage of the total square footage to be leased for which leases have been executed; (ii) the percentage of the total square footage to be leased for which letters of intent have been executed; and (iii) the percentage of the total square footage to be leased that is under negotiation. The City acknowledges that Developer has identified or may identify certain information provided under this subsection as confidential, proprietary business information. The City agrees that it will maintain the confidentiality of such information to the same extent and under the same terms and conditions as set forth in Section 4.1(a), above. 6. AMENDMENT TO SECTION 4.3. Section 4.3 is hereby amended to read as follows: Packet Pg. 189 Attachment17.1: First Amendment to Revdevelopment and Reimbursement Agreement-Redline version (Foothills Mall Agreement Revision) 6 4.3 Construction of Residential Component of Project; Affordable Housing. The Developer shall Complete Construction of the residential components of the Project, subject to Force Majeure, as follows: (a) on or prior to December 31, 2016, the Developer shall Complete Construction of the first phase of the residential component of the Project consisting of a minimum of 200 units; (b) on or prior to December 31, 2018, the Developer shall Complete Construction of the second phase of the residential component of the Project consisting of at least an additional 246 units. Failure to Complete Construction of the residential components of the Project in accordance with this Section 4.3 shall not be deemed to be an Event of Default under this Agreement, provided, however, that if Construction of the residential components of the Project is not Completed as set forth above, then beginning with the 2020 Fiscal Year, the Developer shall be obligated to pay in such Fiscal Year and each Fiscal Year thereafter, regardless of whether the Developer is the owner of the Property on which the residential component of the Project is to be constructed, an amount equal to 50% of the difference between the Pledged Revenues generated from the residential component of the Project and the Estimated Revenues from the Residential Property, as follows: (i) such payment shall be made to the City to the extent that any Pledged Sales Tax Increment Revenues are applied in such fiscal year to the payment of the debt service requirements on the District Bonds; and (ii) to the extent that such payment is not due and owing to the City in any fiscal year, the balance of any such amount to be paid by the Developer in such fiscal year shall be applied toward principal on the District Bonds. Said payment shall be made in each fiscal year until either: (1) the pledge of any Authority Pledged Revenues has ceased; or (2) property taxes are due from the residential component of the Project for 446 units that have been assessed as 100% complete. The Project shall pay any affordable housing fees that may be enacted by the City Council on or before December 1, 2014, as if such fees had been in place and applicable to the Project. Any affordable housing impact fee that may be adopted as part of such requirements shall be paid by the Developer when due for the Project, except that for any portion of the Project developed prior to the imposition of the fee, such fee shall be paid no later than sixty days after adoption. 7. AMENDMENT TO SECTION 4.8. Section 4.8 of the Agreement is hereby amended to read as follows: 4.8 Access to Property. Developer will make arrangements for representatives of the City, including elected officials and staff, and the public, to participate in regular tours of the Property during construction, which tours shall be conducted no less frequently than once per month. Additionally, Developer will permit representatives of the City and the Authority access to the Property and the Project at reasonable times during regular business hours and with prior notice as necessary for the purpose of carrying out or determining compliance with the Packet Pg. 190 Attachment17.1: First Amendment to Revdevelopment and Reimbursement Agreement-Redline version (Foothills Mall Agreement Revision) 7 Agreement, the Urban Renewal Plan, or any City code or ordinance, including, without limitation, inspection of any work being conducted. No compensation will be payable for such access. The City and the Authority, as applicable, agree to restore the Property and any component of the Project to its condition prior to any tests or inspections made by the City and further agree that they shall be responsible for any damage that results from the City or the Authority, as applicable, accessing the Property pursuant to their respective rights under this Agreement, to the extent permitted by law and, in the case of the City, subject to annual appropriation of funds by the City Council, in its sole discretion. 8. VALIDITY OF REMAINING PROVISIONS. All provisions of the Redevelopment Agreement that are not expressly amended herein shall remain in full force and effect and continue to bind the parties thereto. IN WITNESS WHEREOF, this Amendment is executed by the Parties as of April __, 2014. FORT COLLINS URBAN RENEWAL AUTHORITY _____________________________________ Gerry Horak, Vice Chairperson ATTEST: _____________________________ Darin Atteberry, Executive Director Notice Address: Fort Collins Urban Renewal Authority 300 LaPorte Avenue P.O. Box 580 Fort Collins, CO 80522 Attention: Darin Atteberry, Executive Director Email: datteberry@fcgov.com Packet Pg. 191 Attachment17.1: First Amendment to Revdevelopment and Reimbursement Agreement-Redline version (Foothills Mall Agreement Revision) 8 CITY OF FORT COLLINS, COLORADO By: Gerry Horak, Mayor Pro Tem (SEAL) ATTEST: _______________________ Wanda Nelson, City Clerk APPROVED AS TO FORM _______________________ Carrie Mineart Daggett, Deputy City Attorney Notice Address: City of Fort Collins 300 LaPorte Avenue P.O. Box 580 Fort Collins, Colorado 80522 Attention: Carrie Mineart Daggett, Esq., Deputy City Attorney Email: cdaggett@fcgov.com Packet Pg. 192 Attachment17.1: First Amendment to Revdevelopment and Reimbursement Agreement-Redline version (Foothills Mall Agreement Revision) 9 FOOTHILLS METROPOLITAN DISTRICT _________________________________ ATTEST: ________________________, President _____________________________ Secretary Notice Address: c/o White, Bear and Ankele, P.C. The Streets at Southglenn 2154 E. Commons Avenue, Suite 2000 Centennial, CO 80122 Attention: Kristen Bear Email: kbear@wbapc.com Packet Pg. 193 Attachment17.1: First Amendment to Revdevelopment and Reimbursement Agreement-Redline version (Foothills Mall Agreement Revision) 10 WALTON FOOTHILLS HOLDINGS VI, L.L.C., a Delaware limited liability company By: Foothills Alberta Management, LLC, a Colorado limited liability company Its: Authorized Agent By: ____________________________ Donald G. Provost Its: Manager Notice Address: Walton Foothills Holdings VI, L.L.C. 5750 DTC Pkwy, Suite 210 Greenwood Village, CO 80111 Attention: Donald G. Provost Email: dgp@albdev.com With a copy to: Brownstein Hyatt Farber Schreck, LLP 410 Seventeenth Street, Suite 2200 Denver, CO 80202 Attention: Carolynne C. White, Esq. Email: cwhite@bhfs.com Packet Pg. 194 Attachment17.1: First Amendment to Revdevelopment and Reimbursement Agreement-Redline version (Foothills Mall Agreement Revision) 1 Foothills Mall Redevelopment First Amendment to Redevelopment Agreement April 15, 2014 Packet Pg. 195 Attachment17.2: Powerpoint presentation (Foothills Mall Agreement Revision) 2 Developer Request 1. Modification to Section 3.1(c) concerning leased space required prior to City authorization to issue Metro District Bonds 2. Clarification to Section 4.3 concerning payment required of the Developer if the residential units are not completed on time Packet Pg. 196 Attachment17.2: Powerpoint presentation (Foothills Mall Agreement Revision) 3 Seven Conditions Precedent to Issuance of Bonds Developer has Indicated All Conditions Will Be Met With The Exception of (c) a) Financing Plan approved by City Manager – demonstrates sufficient pledged revenue to meet debt service requirements b) Obtained all equity and private financing necessary to construct the non-residential component of the project c) 240k square feet of executed leased space with 120k square feet new tenants to Fort Collins d) Add-On PIF imposed in accordance with Section 4.7 e) Developer obtained all Development Approvals for the Project f) Satisfactory opinion by District’s bond counsel g) There is no event of default Packet Pg. 197 Attachment17.2: Powerpoint presentation (Foothills Mall Agreement Revision) 4 Section 3.1(c) Request Allows Bonds to be Issued with 155k sq. ft. of Leased Space…. $23M of Funds Disbursed…. Remaining Funds Released as Leasing Grows to 310k sq. ft. Current Agreement requirement prior to bond issuance: • Developer to have obtained 240k of executed lease agreements • 120k of the 240k to be new tenants to Fort Collins • If 60k-120k of new tenants – subject to consent of City Manager • Leases to have an average sales per square foot of at least $375 Modification Requested: • Bonds issued with 155k of executed lease agreements • 90k of the 155k to be new tenants to Fort Collins • Leases to have an average sales per square foot of at least $375 • $23M of $53M in bond proceeds released to Developer • Remaining $30M held in escrow & released in $10M tranches as additional leases signed – final release at 310k • Portion of leases new to Fort Collins is laddered to total leases Packet Pg. 198 Attachment17.2: Powerpoint presentation (Foothills Mall Agreement Revision) 5 Section 3.1(c) Request Equity Position and Recourse Commitment are Above Normal…. Demonstrates Confidence in the Project Total New to Fort Collins Funds Released Assigned to City Improv Orig 240k Mall (less Macy's) Current 240k 120k $ 53 $ 8 100% 47% Request 155k 90k $ 23 $ 3 65% 30% 205k 120k 33 1 85% 40% 255k 130k 43 2 106% 50% 310k 150k 53 2 129% 60% Lease Space Sq Ft Funds Released Percent of… Additional Considerations by the Developer & Equity Partner: • Equity Position higher than original intent • Equity Partner 100% recourse on the construction loan • Monthly status reports on leasing & Quarterly tours of the project ($ millions) Packet Pg. 199 Attachment17.2: Powerpoint presentation (Foothills Mall Agreement Revision) 6 Risk & Implications No Additional Financial Risk to the City…. District Risk Related to a Low Probability Event in next 6 Months City Financial Risk: • No financial risk to the City – Metro District Bonds • Avoids interest rate risk associated with late 2014 issuance Developer Financials: • No benefit to the Developer’s financial position Metro District Risk: • Start-Up Risk – bonds are issued and the Mall is not completed • Bonds issued with 155k sq. ft. of leased vs. 240K sq. ft. • If Start-Up Risk occurs between 155k & 240k • Added Risk - bonds are issued and project stalls • If Start-Up Risk occurs after 240k leased • Reduced or Equal Risk - $30M bond pay down results in $41M bonds outstanding after 3 years. Packet Pg. 200 Attachment17.2: Powerpoint presentation (Foothills Mall Agreement Revision) 7 Critical Mass & Timing Critical Mass Required Redevelopment Agreement Leasing Strategy Equity Financing Construction Timeline All Elements Must Come Together Simultaneously…. Date Which Can Impact Leasing Strategy All Elements Must Come Together Simultaneously…. If One Element is Delayed, the Ripple can Impact the Completion Date Which Can Impact Leasing Strategy • Redevelopment Agreement linked to Date Certainty • Date Certainty Influences Leasing Strategy • All Financing Needs to Close Simultaneously • Financing Needs to Close in Time to Allow Construction to Achieve Completion Date Packet Pg. 201 Attachment17.2: Powerpoint presentation (Foothills Mall Agreement Revision) 8 Section 4.3 Clarification Clarification Requested is Consistent with the Original Intent • Intent of the original Section 4.3 was to require the Developer to pay 50% of the lost property tax increment in the event the residential units were delayed. • But only until such time as the residential units are built and property tax increment is being paid. • Clarification added to Section 4.3: “Said payment shall be made in each fiscal year until either: 1) the pledge of any authority pledged revenue has ceased; or 2) property taxes are due from the residential component of the Project for 446 units that have been assessed as 100% complete.” Packet Pg. 202 Attachment17.2: Powerpoint presentation (Foothills Mall Agreement Revision) 9 Developer Request 1. Modification to Section 3.1(c) concerning leased space required prior to City authorization to issue Metro District Bonds 2. Clarification to Section 4.3 concerning payment required of the Developer if the residential units are not completed on time Packet Pg. 203 Attachment17.2: Powerpoint presentation (Foothills Mall Agreement Revision) - 1 - RESOLUTION 2014-032 OF THE COUNCIL OF CITY OF FORT COLLINS APPROVING AN AMENDMENT TO THE REDEVELOPMENT AND REIMBURSEMENT AGREEMENT WITH THE FORT COLLINS URBAN RENEWAL AUTHORITY, WALTON FOOTHILLS HOLDINGS VI, L.L.C., AND THE FOOTHILLS METROPOLITAN DISTRICT REGARDING THE REDEVELOPMENT OF FOOTHILLS MALL WHEREAS, at its regular meeting convened on May 7, 2013, the City Council adopted Resolution 2013-042, approving a Redevelopment and Reimbursement Agreement among the City of Fort Collins (the “City”), the Fort Collins Urban Renewal Authority (the “Authority”), Walton Foothills Holdings VI, L.L.C. (the “Developer”), and the Foothills Metropolitan District (the “District”) regarding the redevelopment of Foothills Mall (the “Agreement”); and WHEREAS, on January 14, 2014, the City Council adopted Resolution 2014-004, approving an updated Redevelopment and Reimbursement Agreement among the City, the Authority, the Developer, and the District regarding the redevelopment of Foothills Mall (the “Agreement”); and WHEREAS, in Resolution 2013-42 and Resolution 2014-004, the City Council stated its finding that it is in the best interests of the City to provide financial assistance to the Foothills Mall redevelopment project (the “Mall Project”) in order to remedy blighted conditions within and around the Mall pursuant to the Midtown Urban Renewal Plan, using certain property and sales tax increment revenues in accordance with the Act, together with certain available revenues of the District and the Developer, to provide a catalyst for redevelopment in the Midtown Urban Renewal Area, to increase sales tax revenues and job opportunities, and to provide other economic and social benefits to the City and surrounding community; and WHEREAS, on January 17, 2014, the final version of the Agreement was signed by all parties, and was placed on file in the Office of the City Clerk; and WHEREAS, following the completion of the Agreement, the Mall Project has continued to move forward, and a formal groundbreaking ceremony for the Mall Project took place on February 26, 2014; and WHEREAS, the Developer has requested an amendment to the Agreement that would change one condition precedent to the issuance of District bonds so as to allow their issuance upon the Developer’s having leased 155,000 square feet, 90,000 of which must to be tenants new to Fort Collins, rather than the currently required 240,000 square feet; and WHEREAS, as a condition of the City agreeing to this change, the Developer has agreed to certain restrictions on the release of a portion of the District bond proceeds to tie their release to additional leasing performance; and Packet Pg. 204 - 2 - WHEREAS, in addition, $8 million in District bond proceeds allocated to the College Avenue Underpass and Foothills Activity Center elements of the Mall Project will be reserved exclusively for that purpose, as part of the release conditions; and WHEREAS, in order to document and make enforceable these proposed terms and conditions, the parties have also negotiated modifications to the language of the Agreement that are described in the First Amendment to Redevelopment and Reimbursement Agreement attached hereto as Exhibit “A” and incorporated herein by this reference (the “Amendment”); and WHEREAS, City staff has recommended that the City agree to the proposed changes to the leasing conditions set forth in the Amendment, to avoid the costs and other detriments associated with a delay in the issuance of the District bonds called for under the Agreement; and WHEREAS, as part of the Amendment, the Developer has also agreed to provide additional security and financing to support the Mall Project and maintain the current timeline for completion; and WHEREAS, in light of the foregoing, the City Council desires to approve the Amendment. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS, as follows: Section 1. Ratification and Approval of Prior Actions. The City Council hereby ratifies, approves and confirms all action heretofore taken (not inconsistent with the provisions of this Resolution) by the City Council or the officers of the City Council or the City named in this Resolution relating to the Mall Project, the execution and delivery of the Agreement and the Amendment, and the performance of the City’s obligations under the Agreement and related documents. Section 2. Finding of Best Interests and Public Purpose. The City Council hereby finds and determines, pursuant to the Constitution, the laws of the State, the Charter and the Code of the City, and in accordance with the foregoing recitals, that adopting this Resolution, providing the specified assistance for the Mall Project, and entering into the Agreement and the Amendment and performing all obligations set forth therein, are necessary, convenient, and in furtherance of the City’s purposes and are in the best interests of the inhabitants of the City, and will serve the important public purposes of remedying blighted conditions within and around the Foothills Mall pursuant to the Midtown Urban Renewal Plan, providing a catalyst for redevelopment in the Midtown Urban Renewal Area, increasing sales tax revenues and job opportunities, and providing other economic and social benefits to the City and surrounding community, and the City Council hereby authorizes and approves the same. Section 3. Approval of Amendment. The Amendment, in substantially the form attached hereto as Exhibit “A”, is in all respects approved, authorized and confirmed. Packet Pg. 205 - 3 - Section 4. Authorization to Execute. The Mayor of the City is hereby authorized and directed to execute and deliver the Amendment, for and on behalf of the City, in substantially the form and with substantially the same content as attached, provided that the approval hereby given to the Amendment includes an approval of such additional details therein, deletions therefrom, or additions thereto as the City Manager, in consultation with the City Attorney, determines to be necessary and appropriate for its completion, or desirable to protect the interests of the City. The execution of the Amendment by the Mayor shall be conclusive evidence of the approval by the City Council of the same in accordance with the terms of this Resolution and the Amendment. Section 5. Amendment Incorporated in District Service Plan. It is the intent of the City Council that the Amendment, as approved hereunder, shall, upon final preparation and signing, be attached to the Amended Service Plan of the District, together with the Agreement, as a nonmaterial amendment to the Amended Service Plan. Section 6. Direction to Act. The City Clerk is hereby authorized and directed to attest all signatures and acts of any official of the City in connection with the matters authorized by this Resolution and to place the seal of the City on any document authorized and approved by this Resolution. The Mayor, the Mayor Pro-Tem of the City, the City Manager, the Financial Officer, the City Clerk and other appropriate officials or employees of the City are hereby authorized and directed to execute and deliver for and on behalf of the City any and all additional certificates, documents, instruments and other papers, and to perform all other acts that they deem necessary or appropriate, in order to implement and carry out the transactions and other matters authorized by this Resolution. The execution of any instrument by the aforementioned officers or members of the City Council shall be conclusive evidence of the approval by the City of such instrument in accordance with the terms of this Resolution and the Amendment. Section 7. Severability. If any section, subsection, paragraph, clause or provision of this Resolution or the Amendment hereby authorized and approved shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of such section, subsection, paragraph, clause or provision shall not affect any of the remaining provisions of this Resolution or the Amendment, the intent being that the same are severable. Section 8. Repealer. All prior resolutions, or parts thereof, inconsistent herewith are hereby repealed to the extent of such inconsistency. Section 9. Effectiveness. This Resolution shall take effect immediately upon its passage. Packet Pg. 206 - 4 - Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 15th day of April, A.D. 2014. _________________________________ Mayor Pro Tem ATTEST: _____________________________ City Clerk Packet Pg. 207 1 FIRST AMENDMENT TO REDEVELOPMENT AND REIMBURSEMENT AGREEMENT THIS FIRST AMENDMENT TO REDEVELOPMENT AND REIMBURSEMENT AGREEMENT (the “Amendment”) dated as of April __, 2014, is made by and among the FORT COLLINS URBAN RENEWAL AUTHORITY, a body corporate and politic of the State of Colorado (the “Authority”), WALTON FOOTHILLS HOLDINGS VI, L.L.C., a Delaware limited liability company (the “Developer”), the CITY OF FORT COLLINS, COLORADO, a municipal corporation (the “City”), and FOOTHILLS METROPOLITAN DISTRICT, a quasi- municipal corporation organized and existing in accordance with Title 32, Article 1, C.R.S. (the “District”). The Authority, the Developer, the City and the District are sometimes collectively called the “Parties,” and individually, a “Party.” RECITALS WHEREAS, on January 17, 2014, the Parties entered into that certain Redevelopment and Reimbursement Agreement (the “Agreement”); and WHEREAS, the Developer has requested an amendment to the Agreement that would change one condition precedent to the issuance of District Bonds so as to allow their issuance upon the Developer’s having leased 155,000 square feet, 90,000 of which must to be tenants new to Fort Collins, rather than the currently required 240,000 square feet; and WHEREAS, as a condition of agreeing to this change, the Developer has agreed to certain restrictions on the release of a portion of the District Bond proceeds to tie their release to additional leasing performance; and WHEREAS, in addition, the Parties have determined that certain other clarifications to the language of the Agreement will be mutually beneficial. NOW THEREFORE, in consideration of the mutual covenants and promises of the Parties contained in this Agreement, and other valuable consideration, the receipt and adequacy of which are acknowledged, the Parties agree to the terms and conditions in this Agreement. AGREEMENT 1. DEFINED TERMS AND RECITALS INCORPORATED. All terms used in this Amendment and defined in the Agreement shall have the meanings ascribed to them in the Agreement, except as otherwise expressly provided herein. All recitals set forth in the Agreement and in this Amendment, above, are incorporated into the Agreement as amended by this Amendment as though fully set forth in the body hereof. EXHIBIT A Packet Pg. 208 Attachment1: Exhibit A (Foothills Mall Agreement Revision RESO) 2 2. DEFINITION ADDED. Section 1 of the Agreement is amendment to add a definition of the term “Tenant New to Fort Collins”, as follows: “Tenant New to Fort Collins” means any tenant other than a tenant that is relocating to the Project an existing business that was operating under a City of Fort Collins sales tax license as of the date of the Agreement or this Amendment. 3. AMENDMENT TO SECTION 3.1. Section 3.1 of the Agreement is hereby amended to read as follows: 3.1 Conditions Precedent to Issuance of District Bonds. The following conditions shall be satisfied on or prior to the issuance of the District Bonds: (a) The Developer and the District shall prepare the Financing Plan and the City Manager and the Executive Director of the Authority shall have approved the Financing Plan. The Financing Plan shall also be in form and substance satisfactory to the District’s bond counsel and the underwriter of the District Bonds. The Financing Plan shall demonstrate that there is expected to be sufficient Pledged Revenues derived from the construction of the Project to pay the debt service requirements on the District Bonds when due. (b) The Developer shall provide to the City Manager the following evidence satisfactory to the City Manager that the Developer has obtained all equity and private financing necessary to construct the non-residential components of the Project: (1) Developer shall certify that it has expended no less than $57 million on the Project, representing the Developer’s equity commitment as of the closing of the District Bonds; and (2) Developer shall demonstrate that it has a closed construction loan with a commitment from the construction lender to fund an amount not less than the difference between the construction costs of the Project and the total of the net bond proceeds and the Developer’s equity commitment described in Section 3.1(b)(1), which construction loan shall provide recourse for one hundred percent (100%) of the loan amount against an entity (or entities) that own(s) substantially all of and controls(s) the Developer. Such recourse may be subject to decreases over time as certain financial tests and leasing tests are achieved. The City’s Financial Officer and City Attorney (or their delegates) shall be entitled to review the loan agreement and related documents, including, but not limited to, any promissory note and all related guarantees and deeds of trust, to verify compliance with this requirement. (c) The Developer shall have obtained executed lease agreements, excluding the existing department store located on Larimer County Parcel Number 9725391002, Packet Pg. 209 Attachment1: Exhibit A (Foothills Mall Agreement Revision RESO) 3 totaling at least 155,000 square footage of the retail area of the Project with tenants that, in the aggregate, have an average sales per square foot of at least $375 based on average national sales performance, and, except as hereinafter provided, of which at least 90,000 square feet shall be leased to Tenants New to Fort Collins. The Developer shall certify to the City upon the City’s request that the conditions of this Subsection (c), excluding verification of the sales per square foot requirement, have been met in full. (d) The Developer shall have imposed the Add-On PIF in accordance with Section 4.7 hereof. (e) The Developer shall have obtained the Development Approvals for the Project, as described in this Agreement and in Exhibit C. (f) The City and the Authority shall receive an opinion of the District’s bond counsel that the District Bonds have been validly issued and opining as to the tax-exempt status of the bonds, which opinion shall be addressed to the City and the Authority, or the City and the Authority shall receive a reliance letter from the District’s bond counsel. (g) No Event of Default hereunder shall have occurred and be continuing hereunder, unless such Event of Default has been cured, remedied or waived, or a remedy has been agreed upon by the Parties which will become effective with the passage of time. 4. AMENDMENT TO SECTION 3.2. Section 3.2 is hereby amended to read as follows: 3.2 Provisions to be Included in District Bond Documents. The District Bond Documents shall contain the following provisions: (a) The District Bonds shall be payable from the Pledged Revenues in the following order of priority: (i) the District Debt Service Mill Levy Revenues; (ii) the Pledged District Specific Ownership Taxes; (iii) the Pledged Property Tax Increment Revenues; (iv) the Add-On PIF Revenues; and (iii) the Pledged Sales Tax Increment Revenues. (b) The District Bond proceeds may only be made available to the District in tranches, upon the achievement by Developer of threshold requirements for executed leases for tenants as set forth in the table below. The parties acknowledge that, as provided in Section 3.1(c) above, attainment of the threshold for the first such tranche is a condition precedent of issuance of the District Bonds. As to tranches 1, 2 and 3 only, the Packet Pg. 210 Attachment1: Exhibit A (Foothills Mall Agreement Revision RESO) 4 tenants comprising the required threshold shall have an average sales per square foot of at least $375 in the aggregate based on average national sales. A portion of each tranche shall be allocated to the Underpass and Foothills Activity Center improvements as set forth in the table below. The balance of the available proceeds within each tranche may be spent without restriction, except as otherwise set forth in this Agreement. (c) If, on the third anniversary date of the issuance of the District Bonds, any portion of the District Bond proceeds that has not been disbursed as a result of failure to meet one or more leasing thresholds described in Section 3.2(b), then the remaining undisbursed proceeds shall be used to carry out the mandatory extraordinary redemption of a corresponding portion of the District Bonds. (d) After the debt service requirements on the District Bonds have been paid or provided for in each Fiscal Year, and after all payments have been made to replenish the reserve fund for the District Bonds and to make any payments into any required rebate funds for the District Bonds, any excess Pledged Revenues shall be applied by the District Bond Trustee as follows: 5. AMENDMENT TO SECTION 4.1. Section 4.1 is hereby amended to read as follows: 4.1 Construction of Project. As set forth in Section 2.1 hereof, the Developer and/or the District shall construct the Project. The Project shall be constructed substantially in accordance with the Development Approvals and Exhibit C attached hereto. Additionally, as construction proceeds on the Project, Developer shall comply with the following requirements. (a) Developer shall provide a monthly written status report to the City regarding the status of construction of the Project with respect to the overall schedule. The City acknowledges that Developer has identified or may identify certain information Tranche Cumulative Total Square Feet of Executed Lease Agreements Total Amount of Bond Proceeds Disbursed in Tranche Cumulative Total Amount of Bond Proceeds Disbursed Minimum Bond Proceeds for Underpass and Foothills Activity Center (FAC) 1 155,000 $23M $23M $3M (Underpass) 2 205,000 $10M $33M $1M (FAC) 3 255,000 $10M $43M $2M (FAC) 4 310,000 $10M $53M $2M (FAC) Packet Pg. 211 Attachment1: Exhibit A (Foothills Mall Agreement Revision RESO) 5 contained in such reports as confidential, proprietary business information. The City agrees that it will maintain the confidentiality of such information except as required by applicable law. If the City is requested to disclose information identified by Developer as confidential and if the City believes it is legally required to make disclosure of such information, the City will notify Developer at least two business days prior to making such disclosure, so as to permit Developer to propose appropriate redactions or seek a judicial declaration preventing disclosure. The Developer shall reimburse the City for any attorneys’ fees or costs incurred by the City or that the City is ordered to pay in connection with such proceedings. (b) Developer shall certify to the City prior to the release of each tranche of District Bond proceeds as set forth in Section 3.2(b) that the total square footage of leases to Tenants New to Fort Collins meets the minimum threshold for such tranche as set forth in the table below: Tranche Total Square Feet of Executed Lease Agreements Total Leasing to Tenants New to Fort Collins 1 155,000 90,000 2 205,000 110,000 3 255,000 130,000 4 310,000 150,000 (c) Developer shall also provide monthly reports to the City which include the following information: (i) the percentage of the total square footage to be leased for which leases have been executed; (ii) the percentage of the total square footage to be leased for which letters of intent have been executed; and (iii) the percentage of the total square footage to be leased that is under negotiation. The City acknowledges that Developer has identified or may identify certain information provided under this subsection as confidential, proprietary business information. The City agrees that it will maintain the confidentiality of such information to the same extent and under the same terms and conditions as set forth in Section 4.1(a), above. 6. AMENDMENT TO SECTION 4.3. Section 4.3 is hereby amended to read as follows: 4.3 Construction of Residential Component of Project; Affordable Housing. The Developer shall Complete Construction of the residential components of the Project, subject to Force Majeure, as follows: Packet Pg. 212 Attachment1: Exhibit A (Foothills Mall Agreement Revision RESO) 6 (a) on or prior to December 31, 2016, the Developer shall Complete Construction of the first phase of the residential component of the Project consisting of a minimum of 200 units; (b) on or prior to December 31, 2018, the Developer shall Complete Construction of the second phase of the residential component of the Project consisting of at least an additional 246 units. Failure to Complete Construction of the residential components of the Project in accordance with this Section 4.3 shall not be deemed to be an Event of Default under this Agreement, provided, however, that if Construction of the residential components of the Project is not Completed as set forth above, then beginning with the 2020 Fiscal Year, the Developer shall be obligated to pay in such Fiscal Year and each Fiscal Year thereafter, regardless of whether the Developer is the owner of the Property on which the residential component of the Project is to be constructed, an amount equal to 50% of the difference between the Pledged Revenues generated from the residential component of the Project and the Estimated Revenues from the Residential Property, as follows: (i) such payment shall be made to the City to the extent that any Pledged Sales Tax Increment Revenues are applied in such fiscal year to the payment of the debt service requirements on the District Bonds; and (ii) to the extent that such payment is not due and owing to the City in any fiscal year, the balance of any such amount to be paid by the Developer in such fiscal year shall be applied toward principal on the District Bonds. Said payment shall be made in each fiscal year until either: (1) the pledge of any Authority Pledged Revenues has ceased; or (2) property taxes are due from the residential component of the Project for 446 units that have been assessed as 100% complete. The Project shall pay any affordable housing fees that may be enacted by the City Council on or before December 1, 2014, as if such fees had been in place and applicable to the Project. Any affordable housing impact fee that may be adopted as part of such requirements shall be paid by the Developer when due for the Project, except that for any portion of the Project developed prior to the imposition of the fee, such fee shall be paid no later than sixty days after adoption. 7. AMENDMENT TO SECTION 4.8. Section 4.8 of the Agreement is hereby amended to read as follows: 4.8 Access to Property. Developer will make arrangements for representatives of the City, including elected officials and staff, and the public, to participate in regular tours of the Property during construction, which tours shall be conducted no less frequently than once per month. Additionally, Developer will permit representatives of the City and the Authority access to the Property and the Project at reasonable times during regular business hours and with prior notice as necessary for the purpose of carrying out or determining compliance with the Agreement, the Urban Renewal Plan, or any City code or ordinance, including, without limitation, inspection of any work being conducted. No compensation will be payable for such access. The City and the Authority, as applicable, agree to restore the Property and any component of the Project to its condition prior to any tests or inspections made by the City and further agree that they shall be responsible for any damage that results from the City or the Authority, as applicable, accessing the Property pursuant to their respective rights under this Packet Pg. 213 Attachment1: Exhibit A (Foothills Mall Agreement Revision RESO) 7 Agreement, to the extent permitted by law and, in the case of the City, subject to annual appropriation of funds by the City Council, in its sole discretion. 8. VALIDITY OF REMAINING PROVISIONS. All provisions of the Redevelopment Agreement that are not expressly amended herein shall remain in full force and effect and continue to bind the parties thereto. IN WITNESS WHEREOF, this Amendment is executed by the Parties as of April __, 2014. FORT COLLINS URBAN RENEWAL AUTHORITY _____________________________________ Gerry Horak, Vice Chairperson ATTEST: _____________________________ Darin Atteberry, Executive Director Notice Address: Fort Collins Urban Renewal Authority 300 LaPorte Avenue P.O. Box 580 Fort Collins, CO 80522 Attention: Darin Atteberry, Executive Director Email: datteberry@fcgov.com Packet Pg. 214 Attachment1: Exhibit A (Foothills Mall Agreement Revision RESO) 8 CITY OF FORT COLLINS, COLORADO By: Gerry Horak, Mayor Pro Tem (SEAL) ATTEST: _______________________ Wanda Nelson, City Clerk APPROVED AS TO FORM _______________________ Carrie Mineart Daggett, Deputy City Attorney Notice Address: City of Fort Collins 300 LaPorte Avenue P.O. Box 580 Fort Collins, Colorado 80522 Attention: Carrie Mineart Daggett, Esq., Deputy City Attorney Email: cdaggett@fcgov.com Packet Pg. 215 Attachment1: Exhibit A (Foothills Mall Agreement Revision RESO) 9 FOOTHILLS METROPOLITAN DISTRICT _________________________________ ATTEST: ________________________, President _____________________________ Secretary Notice Address: c/o White, Bear and Ankele, P.C. The Streets at Southglenn 2154 E. Commons Avenue, Suite 2000 Centennial, CO 80122 Attention: Kristen Bear Email: kbear@wbapc.com Packet Pg. 216 Attachment1: Exhibit A (Foothills Mall Agreement Revision RESO) 10 WALTON FOOTHILLS HOLDINGS VI, L.L.C., a Delaware limited liability company By: Foothills Alberta Management, LLC, a Colorado limited liability company Its: Authorized Agent By: ____________________________ Donald G. Provost Its: Manager Notice Address: Walton Foothills Holdings VI, L.L.C. 5750 DTC Pkwy, Suite 210 Greenwood Village, CO 80111 Attention: Donald G. Provost Email: dgp@albdev.com With a copy to: Brownstein Hyatt Farber Schreck, LLP 410 Seventeenth Street, Suite 2200 Denver, CO 80202 Attention: Carolynne C. White, Esq. Email: cwhite@bhfs.com Packet Pg. 217 Attachment1: Exhibit A (Foothills Mall Agreement Revision RESO) City of Fort Collins Page 1 u r b a n r e n e w a l a u t h o r i t y Karen Weitkunat, Chairperson City Council Chambers Gerry Horak, Vice-Chairperson City Hall West Bob Overbeck 300 LaPorte Avenue Lisa Poppaw Fort Collins, Colorado Gino Campana Wade Troxell Ross Cunniff Cablecast on City Cable Channel 14 on the Comcast cable system Steve Roy Darin Atteberry Wanda Nelson City Attorney Executive Director Secretary The City of Fort Collins will make reasonable accommodations for access to City services, programs, and activities and will make special communication arrangements for persons with disabilities. Please call 221-6515 (TDD 224- 6001) for assistance. URBAN RENEWAL AUTHORITY BOARD FORMAL MEETING April 15, 2014 (after the Regular Council Meeting) CALL MEETING TO ORDER ROLL CALL AGENDA REVIEW Executive Director’s Review of Agenda. CITIZEN PARTICIPATION Individuals who wish to make comments regarding items remaining on the Consent Calendar or wish to address the Board on items not specifically scheduled on the agenda must first be recognized by the Chairperson or Vice Chair. Before speaking, please sign in at the table in the back of the room. The timer will buzz once when there are 30 seconds left and the light will turn yellow. The timer will buzz again at the end of the speaker’s time. Each speaker is allowed 5 minutes. If there are more than 6 individuals who wish to speak, the Chairperson may reduce the time allowed for each individual. State your name and address for the record. Applause, outbursts or other demonstrations by the audience are not allowed Keep comments brief; if available, provide a written copy of statement to Secretary Address your comments to Council, not the audience City of Fort Collins Page 2 CITIZEN PARTICIPATION FOLLOW-UP STAFF REPORTS COMMISSIONER REPORTS Discussion Items The method of debate for discussion items is as follows: ● Chairperson introduces the item number and subject; asks if formal presentation will be made by staff ● Staff and/or Applicant presentation (optional) ● Chairperson requests citizen comment on the item (five-minute limit for each citizen) ● Board questions of staff on the item ● Board motion on the item ● Board discussion ● Final Board comments ● Board vote on the item Note: Time limits for individual agenda items may be revised, at the discretion of the Chairperson, to ensure all citizens have an opportunity to speak. Please sign in at the table in the back of the room. The timer will buzz when there are 30 seconds left and the light will turn yellow. It will buzz again at the end of the speaker’s time. 1. Consideration and Approval of the Minutes from the March 4, 2014 Urban Renewal Authority Board Meeting. The purpose of this item is to approve the minutes from the March 4, 2014 Urban Renewal Authority meeting. 2. Resolution No. 070 Of The Board Of Commissioners Of The Fort Collins Urban Renewal Authority Resolution 070 Approving An Amendment To The Redevelopment And Reimbursement Agreement With The City , Walton Foothills Holdings Vi, L.L.C., And The Foothills Metropolitan District Regarding The Redevelopment of Foothills Mall. (staff: Darin Atteberry, Mike Beckstead; 3 minute staff presentation; 15 minute discussion) The purpose of this item is to amend the Foothills Mall Redevelopment Agreement. The Developer has asked to amend Section 3.1 - Conditions Precedent to Issuance of District Bonds of the Agreement, to allow the Metro District Bonds to be issued with 155k square feet of executed leases vs. the 240k square feet required in the current agreement. The Developer is also asking for clarification to Section 4.3 - Construction of Residential Component of Project: Affordable Housing, concerning the period of time the Developer may be required to make payments to the City if there is a delay in the completion of the residential units. OTHER BUSINESS ADJOURNMENT Agenda Item 1 Item # 1 Page 1 AGENDA ITEM SUMMARY April 15, 2014 Urban Renewal Authority Board STAFF Wanda Nelson, City Clerk SUBJECT Consideration and Approval of the Minutes from the March 4, 2014 Urban Renewal Authority Board Meeting. EXECUTIVE SUMMARY The purpose of this item is to approve the minutes from the March 4, 2014 Urban Renewal Authority meeting. ATTACHMENTS 1. March 4, 2014 URA minutes (PDF) Packet Pg. 3 March 4, 2014 Urban Renewal Authority A meeting of the Fort Collins Urban Renewal Authority was held on Tuesday March 4, 2014, at 6:15 p.m., in the Council Chambers of the City of Fort Collins City Hall. Roll Call was answered by the following Boardmembers: Campana, Cunniff, Horak, Overbeck, Poppaw, Troxell and Weitkunat. Staff Members Present: Atteberry, Nelson, Roy. Agenda Review Executive Director Atteberry stated there were no changes to the published agenda. Citizen Participation Eric Sutherland, 3520 Golden Currant, opposed the interpretation of the Urban Renewal Authority statutes in such a way that prime farmland and other seemingly non-blighted areas could be considered to have urban blight. He stated the interpretation was made by John Duval, Loveland City Attorney. Citizen Participation Follow-Up Boardmember Cunniff stated the concerns relating to the URA and URA abuse are part of the legislative policy agenda. Consideration and Approval of the January 14, 2014 Urban Renewal Authority minutes, Adopted Boardmember Horak made a motion, seconded by Boardmember Poppaw, to approve the minutes of the January 14, 2014 Urban Renewal Authority meeting. Yeas: Campana, Cunniff, Horak, Overbeck, Weitkunat, Poppaw and Troxell. Nays: none. THE MOTION CARRIED. City Manager Atteberry commended the work and character of John Duval, who is joining the City Attorney’s Office. Resolution No. 069 Approving a Redevelopment Agreement Between the Urban Renewal Authority and Revive Properties LLC for the Revive Project, Defeated The following is the staff memorandum for this item. Packet Pg. 4 Attachment1.1: March 4, 2014 URA minutes (URA Minutes - 0304) March 4, 2014 247 “EXECUTIVE SUMMARY The purpose of this item is to review a resolution approving a Redevelopment Agreement between the Fort Collins Urban Renewal Authority and Revive Properties LLC for the Revive Project. Revive Properties is a 89-unit residential housing and live-work project located to the west of North College Avenue on Willox Street in the North College Urban Renewal Plan area. The Developer has requested financial assistance from the Urban Renewal Authority for street improvements, sustainability features, and stormwater detention improvements associated with the project. The project will generate approximately $1.76 million in total tax increment, and the URA staff is recommending a $1.27 reimbursement from that increment for eligible costs. BACKGROUND / DISCUSSION The Revive project represents a great example of how public-private partnerships can be used to help the community achieve its long-term objectives related to creating great places and reaching the community’s sustainability goals. Revive will be a unique development that utilizes geothermal energy for heating and cooling homes, as well as solar power, in an effort to achieve a Net Zero Capable community. It will be a model development for Larimer County. Additionally, Revive will be a catalyst for redevelopment in the North College Urban Renewal Area by providing much needed moderately priced housing. Revive Properties is a new residential development proposed within the North College Urban Renewal Plan area. The Urban Renewal Authority (URA) has received a formal application from Revive Properties, LLC (the Developer) requesting a total of $1,600,000 in financial assistance, however, URA staff is recommending a reimbursement amount of $1,270,414 based on the eligible costs associated with the project (See Attachment 1 for Project narrative). In evaluating URA projects, significant consideration is given to the public benefits achieved by the project. Public benefit is measured by the extent to which the project aligns and achieves City policies and remediates blight. Revive properties supports a number of City Plan policies, including: EH 4.1 - Prioritize Targeted Redevelopment and Infill LIV 5.1 - Encourage Targeted Redevelopment and Infill LIV 22.1 - Vary Housing Models and Types LIV 22.3 - Offer Multi-Family Variation LIV 22.4 - Orient Buildings to Public Streets ENV 6.5 - Offer Energy Efficiency Incentives ENV 20.4 - Develop Public/Private Partnerships (Stormwater Management) The North College Infrastructure Funding Plan was created to prioritize key infrastructure in the area (See Attachment 2). The missing portion of Mason Street that Revive Properties will complete is listed as a medium priority in the Plan. Although considered to have lower priority, the stormwater detention pond is an important improvement for the West Side Drainage System Packet Pg. 5 Attachment1.1: March 4, 2014 URA minutes (URA Minutes - 0304) March 4, 2014 248 identified in the Plan. Furthermore, these improvements are listed in the Plan as helping solve for adequate public facility issues and supporting economic development. Moreover, the blight factors that will be addressed by this project include: Deteriorated site or other public infrastructure - this area lacks an adequate, coordinated drainage system, which this project is making progress to correct. Inadequate public improvements or utilities - this project contributes to the creation of an adequate drainage system and functional street network. Substantial physical underutilization or vacancy of sites - the fact that this site remains undeveloped in an otherwise urban area qualifies as helping to remediate this issue. Details of the project and financial assistance request are described below, and staff is seeking direction from the Finance Committee regarding whether there is support for pursuing a Redevelopment Agreement with the Developer. Project Description Revive Properties is a 89-unit residential housing and live-work project located to the west of North College Avenue on Willox Street in the North College Urban Renewal Plan area. The site is approximately 10 acres and will include 37 town homes, 18 single-family homes, 18 carriage homes, 13 live work units and, 3 condos (see Site Plan, Attachment 2). The subject property was previously under development by Merten Homes as Union Place which was awarded $2.2 million in tax increment financing (TIF) revenues in 2008 under a redevelopment agreement from the URA (Attachment 3). The project experienced financial difficulties in late 2011 and was transferred by deed in lieu of foreclosure to Adams Bank & Trust in early 2012. The bank subsequently sold the property to Wendells Fertilizer in March of 2012 who then sold the property to Revive Properties in September of 2013 for $3.64 million. The current developer, Revive Properties, who is entirely owned by Placer Development, requested a redevelopment agreement for $1.6 million in TIF reimbursements for costs associated with public improvements and sustainability elements included in the current plan. Between 2008 and 2011, Merten Homes, the Union Place developer, made significant investments into the infrastructure and landscaping of the site that included the partial installation of the geothermal heating system and much of the required roads and sidewalks. Total site and infrastructure investments completed prior to the property being transferred to Adams Bank amounted to approximately $724,467. A significant portion of these costs can be attributed to Sustainable Improvements including the installation of a geothermal heating system totaling $370,294. There has also been $354,173 in General Site Improvements including the majority of the site’s roads and sidewalks. It should be noted that Revive Properties has many of the invoices for the completed work; however, some of the invoices are missing. As a result of this and given the amount of time that has transpired, URA staff has indicated that reimbursement would only be considered for costs yet to be incurred by Revive Properties, with the exception of the Mason Street public improvements and Packet Pg. 6 Attachment1.1: March 4, 2014 URA minutes (URA Minutes - 0304) March 4, 2014 249 the geothermal system. Revive Properties has provided the invoices for that work and URA staff has acknowledged those improvements meet larger community goals and have added extraordinary costs to the project. Eligible Costs The URA was created to eliminate blight using tax increment financing (TIF), and has the ability to reimburse a developer for eligible improvements associated with the project. The Developer requests financial assistance for Mason Street public improvements, regional stormwater infrastructure, and significant sustainable strategies all of which are eligible under Colorado Urban Renewal Law. Below is a description of the improvements and Table 1 provides the costs associated with each. It should be noted that the reimbursement request is for site improvements only. Mason and Willox Street Improvements: Mason Street extends 495 feet to the south from Willox Street. Mason Street is a two-lane collector as shown on the Master Street Plan and the only public street located on the site. It will require a larger right-of-way and also includes more utility infrastructure than what is necessary for a private street. In addition to the right-of-way and utilities, the eastern portion of the site becomes very difficult or cost prohibitive to develop. These factors lead to extraordinary costs that are above and beyond what is necessary for the private development and also decrease the density and future development potential. TIF funds are being requested to cover the costs for the construction of this street. These costs have been incurred. Landscaping in ROW and Regional Detention Pond: Significant landscaping is planned for the Willox and Mason Street ROW, as well as the regional detention pond, which has been dedicated to the City of Fort Collins. The detention pond will be utilized as both passive and active open space for the neighborhood. A 2” water tap will be required to irrigate all the public and community green space, as well as the community gardens. The community gardens will also provide healthy food and act as community gathering space. Added site amenities will increase the community experience. The costs associated with these improvements are estimates and have not yet been incurred by Revive Properties. Sustainable Strategies: Renewable Energy: Geothermal Heating and Cooling - Revive Properties will be the first development to utilize a geothermal system on a community wide basis. While the system is significantly more expensive to install, it will result in significant energy savings to the residents. Permeable Pavers: There are a significant number of permeable pavers throughout the site, which reduce stormwater runoff and are a more aesthetic surface improvement. This will be a model project for the City to test pervious pavers on a larger scale such as streets and parking areas. LEED Consulting: CSU’s Institute for the Built Environment will evaluate the site for best practices in neighborhood design using LEED-ND (Leadership in Energy and Environmental Packet Pg. 7 Attachment1.1: March 4, 2014 URA minutes (URA Minutes - 0304) March 4, 2014 250 Design - Neighborhood Development). Table 1: Eligible Cost Retroactive Reimbursement The URA staff has recommended a $1.27 million reimbursement, of which $490,304.43 are for improvements that have already been completed. The Urban Renewal Authority Policies and Procedures state: “TIF will not be used to retroactively reimburse projects or make payments to cover costs associated with any actions incurred by a development/redevelopment prior to execution of the Redevelopment Agreement, except for eligible hard costs associated with public improvements required of the project as approved by the Board.” It should be noted that of the $490K, just under $36K is for Mason Street improvements, which are clearly public improvements; however, the remainder is for the geothermal system ($370K) and a portion of the permeable pavers ($84K). While an important component of the project, the Eligible Cost Amount Willox Street Public Improvements Signage & Striping $ 8,588 Subtotal $ 8,588 Mason Street Improvements Dirt $ 1,639 Concrete $ 12,645 Asphalt $ 21,522 Subtotal $ 35,806 Landscape & Irrigation Detention Pond 2" Water Tap $ 137,325 Willox ROW $ 36,405 Mason ROW $ 13,604 Public park/Detention Pond $ 235,727 Community Gardens $ 20,000 Site Amentities $ 9,600 Monumentation $ 20,000 Maintenance and Warranty $ 28,960 Subtotal $ 501,621 Sustainable Strategies Renewable Energy - Geothermal $ 500,295 Permeable Pavers $ 84,204 Solar Street Lighting $ 113,524 Onsite Recycling Management $ 11,376 LEED Consulting $ 15,000 Subtotal $ 724,398 Total $ 1,270,414 Packet Pg. 8 Attachment1.1: March 4, 2014 URA minutes (URA Minutes - 0304) March 4, 2014 251 sustainable features are not considered a “public improvement required of the project” and would fall outside the URA policy. The Urban Renewal Authority Policies and Procedures also state: “The Board may, in its discretion, amend or waive sections of this document when determined necessary or appropriate” The URA staff is recommending the Board waive this section of policy document for the following reasons: The sustainable features incorporated into the Revive project are consistent with other community objectives related to sustainability. According to the EPA, geothermal heat pumps are the most energy efficient, environmentally clean and cost effective system for temperature control. The intent of the Revive developer is to construct Net Zero Capable residential units, and the geothermal system is a major factor in reaching that goal. In 2008 City Council adopted new carbon reduction goals for the Fort Collins community, which is to reduce communitywide emissions 20% below 2005 levels by 2020. The geothermal system and permeable pavers are a major contributor to the extraordinary costs associated with the need for URA assistance. One of the state objectives of the URA is to: “Promote energy and water efficiencies within buildings and developments.” Financial Analysis The URA is under contract with Economic and Planning Systems (EPS), a consultant firm out of Denver, CO, to conduct third-party financial analyses when TIF is requested. At the cost of the Developer, EPS conducted a financial analysis to understand the financial need and reasonableness of the TIF request. Tax Increment Generation The Larimer County Assessor’s Office performed an analysis of the potential tax that will be generated by the project upon completion. Based on this analysis, the County estimates the stabilized value of the property to be $18.6 million, generating $135,572 per year in tax over and above the existing taxes collected, which represents the tax increment. Assuming construction in 2014, there are approximately 15 years remaining in the North College Urban Renewal Area available to generate project increment, resulting in a total estimated increment of $1,762,436 (this assumes a 0% annual growth rate). Revive Properties is requesting $1,270,414 in TIF from the URA, representing 72% of the total increment. This amount is consistent with the established URA Financial Parameters, which limits the total amount of TIF assistance relative to TIF generation to 75% for improvements which are generally considered enhancements. It should be noted that the URA financial parameters also limit the percent TIF contribution relative to total project cost to 15%. Revive’s total project cost is $5.4 million, excluding the vertical construction costs. This puts the percent of TIF relative to project cost at 23%, which is higher than the URA financial parameters. However, if the estimated vertical construction costs are included ($18,697,200), then the percent TIF relative to total project cost is equal to 7%. URA staff recommends evaluating the project with the vertical construction costs included as that is Packet Pg. 9 Attachment1.1: March 4, 2014 URA minutes (URA Minutes - 0304) March 4, 2014 252 what generates the property value, which generates the tax increment. Financial Returns EPS conducted an analysis to determine the impact of the URA’s participation on the developer’s return on investment given the developer’s estimated revenue from lot sales. Without financial assistance from the URA, the return is -30%; with the recommended URA assistance, the return is -6.3%. EPS notes that a slight increase in estimated revenues from lots sales results an improved return, although still lower than what a developer or investor would expect for a real estate development project of this size and level of risk. EPS concludes that the Developer’s TIF request is atypical in that Revive Properties request is for the horizontal improvements only, and no pro forma has been provided for the vertical construction. However, on face value, based on the order of magnitude planning level financial data provided, the project meets the “but for” analysis requirement that the TIF funds are needed to make the project financially feasible. Redevelopment Agreement Terms The following points are included within the final Redevelopment Agreement: The maximum URA reimbursement is $1,270,414. The reimbursement is contingent upon completion 25% of the units (22 units) The URA shall pay 72% of the increment annually generated by the project on the property and paid during the preceding calendar year. The URA shall pay the developer a reimbursement until either: 1) the full payment of the reimbursement obligation has been satisfied; or, February 1, 2029 Revive Properties to complete construction of the Public Improvements by June 30, 2015. 25% of the units within the project by December, 2015. All units will utilize a geothermal heating and cooling system. All units will utilize solar photovoltaic systems and will incorporate Net Zero Capable design Staff Evaluation Staff is supportive of the financial request for the following reasons: The costs that the Developer is seeking assistance with are eligible public improvements according to Colorado Urban Renewal Law. The URA’s financial assistance fills a financial “gap” in the project. The Developer’s financial return is lower than what a developer or investor would expect for a real estate development project of this size and level of risk, even with the URA assistance. The Developer is seeking a proportion of total tax increment generated from the project that is consistent with the URA financial parameters and will allow the URA to use the Packet Pg. 10 Attachment1.1: March 4, 2014 URA minutes (URA Minutes - 0304) March 4, 2014 253 remaining increment for additional North College projects. FINANCIAL IMPACTS Currently, the project site generates approximately $18,932 in annual property tax revenue. After the Developer’s approximately $19 million investment, the site will generate approximately $135,572 in annual tax increment. Based upon a conservative estimate assuming no appreciation, the site will generate approximately $1.76 million over the remaining life of the North College Urban Renewal Plan area. The Developer’s request for $$1.2 million represents 72% of the total increment. Although the URA will not have to borrow funds from the City to cover the reimbursement obligation, the Redevelopment Agreement commits the URA to repay the Developer 72% of the tax increment generated by the project annually until either: (1) the full payment of the reimbursement obligation has been satisfied; or, (2) February 1, 2029. ENVIRONMENTAL IMPACTS The Revive project is designed to be a Net Zero Capable community and will realize significant energy savings relative to a traditional residential subdivision. According to the EPA, geothermal heat pumps are the most energy efficient, environmentally clean and cost effective system for temperature control. Combined with solar photovoltaic systems, Revive will be a model for sustainable development in northern Colorado. Revive Properties, LLC is working with CSU’s Institute for the Built Environment and is still evaluating the energy system. It is anticipated the applicant will be able to present the energy savings quantitatively at the March 4 meeting. BOARD / COMMISSION RECOMMENDATION The North College Citizen's Advisory Board reviewed the Revive project and the associated request to the URA for financial assistance on February 6, 2014. The Board unanimously approved the following motion: "The North College Citizens’ Advisory Group supports the project and its benefit to the neighborhood, with regard to the rooftops being added to the neighborhood and the overall design of sustainability." Minutes from that meeting are included as Attachment 5. The Urban Renewal Finance Committee reviewed the Revive project on February 10, 2014. Minutes will be provided under separate cover. The Economic Advisory Commission reviewed the Revive project on February 18, 2014. Minutes will be provided under separate cover.” Tom Leeson, Redevelopment Program Manager, stated this Resolution authorizes the redevelopment agreement between Revive Properties, LLC and the Fort Collins Urban Renewal Authority. He discussed the City’s objectives and goals that are met by this project and reviewed the location and details of the project. Additionally, Leeson reviewed the financial assistance request and costs of the project. He stated the URA staff is recommending a reimbursement of Packet Pg. 11 Attachment1.1: March 4, 2014 URA minutes (URA Minutes - 0304) March 4, 2014 254 $1.27 million, which represents 72% of the total tax increment collected. He also noted there is still a negative return projected, even with the URA assistance package. He detailed the terms of the redevelopment agreement. David Hamm, Fort Collins resident, stated detention ponds do not work and suggested the area may violate the Army Corps of Engineers floodplain map. Mike Pruznick, Fort Collins resident, opposed the financial assistance package and redevelopment agreement. He stated the project does not appear economically viable. Eric Sutherland, 3520 Golden Currant, stated neither the URA nor the applicant should have any expectation of receipt of monies from the County Treasurer given the way this deal is crafted. He opposed the redevelopment agreement and stated its crafting does not comport with state law. Chair Weitkunat requested staff address the commentary regarding the detention pond and floodplain. Leeson replied this project went through a full review and the detention pond has been sized as part of a regional detention pond. He noted two additional detention ponds are planned for the east side of College Avenue, as well. The site is currently not within the floodplain and therefore does not need to go through the FEMA floodplain process. Chair Weitkunat asked about invoices for retroactive reimbursement. Leeson replied the improvements for which staff is recommending retroactive reimbursement have invoices totaling about $490,000. Boardmember Campana stated this site was originally awarded $2.2 million in URA funds, noting none of it was funded at the time. He clarified a portion of what was previously approved is being requested to be reimbursed in this item. He questioned why the URA would support a project that has negative returns with $1.2 million in assistance. Leeson replied this project is attempting to break even in terms of site improvements; therefore, the analysis does not include any of the vertical improvements. Additionally, he stated the URA holds little risk as it is paying on the tax increment generated by the vertical construction. Boardmember Campana stated the density on the site could easily be doubled, which would aid in the returns. He stated he had difficulty supporting the item, given the projected negative returns. Leeson suggested the project developer address the Board’s concerns. Susan McFadden, Development Consultant, discussed the process of developing the density and lot layout for the site, stating additional density is not possible. Boardmember Overbeck asked how many acres were required to be allocated for the detention pond and the Mason Street project. Ms. McFadden replied three acres out of the ten were required to be allocated. Packet Pg. 12 Attachment1.1: March 4, 2014 URA minutes (URA Minutes - 0304) March 4, 2014 255 Boardmember Overbeck asked how many units could have been constructed on those three acres. Ms. McFadden replied it could have been forty-five units and went on to discuss the need for the tax increment financing. Boardmember Campana stated a project with similar design intentions could occur on the property, but questioned whether this is the appropriate project. Boardmember Cunniff stated several policies would need to be waived in order to approve this project: the funding of existing improvements, the fact the reimbursement exceeds 15% of the total project cost, and the potential waiver of the 15% because of the value of the public improvements to the overall URA objectives. Boardmember Cunniff asked if an analysis of the viability of the project without the reimbursements for the existing improvements occurred. He stated that would increase the negative returns from $350,000 to $800,000. Leeson replied those numbers are correct. Boardmember Cunniff commended the creativity of the project but expressed concern regarding a possible precedent being created for reimbursement of existing improvements. He stated the Whereas clause relating to state statute is quite brief and does not answer the questions raised regarding whether financing is required as a component of a TIF award. He requested further clarification on the topic. Boardmember Troxell asked about the 25% completion figure for beginning reimbursement. Leeson replied staff wanted to ensure that there was at least a significant amount of vertical construction in order to generate the tax increment for the project prior to reimbursement. Boardmember Troxell requested staff opinion regarding the likelihood the project will meet that figure by the appointed date and become a successful project. Leeson replied staff is of the opinion, given the momentum of the existing single-family housing market and the fact the project is nearly complete for its single-family entitlements, the project will move forward. Boardmember Troxell noted the single-family aspects are essentially making the project viable. Leeson agreed and noted the redevelopment agreement is structured so that the project will only receive a maximum of 72% of the generated tax increment. Boardmember Overbeck made a motion, seconded by Boardmember Troxell, to adopt Resolution No. 069. Boardmember Poppaw stated she would support the project, given the low risk to the URA and the need for this type of project. Vice-Chair Horak noted the North College TIF district has 15 years remaining and noted with construction, there are 12 or 13 years left for this project. Leeson agreed and stated any vertical construction completed this year will be reappraised next year and collected in 2016. Packet Pg. 13 Attachment1.1: March 4, 2014 URA minutes (URA Minutes - 0304) March 4, 2014 256 Vice-Chair Horak asked what would occur should this item not get approved. Leeson replied the developer would need to complete a risk analysis as to whether or not to proceed. Boardmember Campana commended the project but noted its feasibility is dependent upon density and the value of the existing land. He suggested changes could be made to increase the feasibility of the project. Boardmember Cunniff commended the project but expressed concern regarding its feasibility. Boardmember Troxell stated he would support the motion as the URA is sufficiently protected and the project is an important one for the area. Boardmember Overbeck stated he would support the motion as the project fuels the City’s sustainability goals and incorporates New Urbanism designs. Chair Weitkunat commended the project and the ways in which it meets City goals but expressed concern regarding URA policy changes and the project’s financial viability. The vote on the motion was as follows: Yeas: Overbeck, Poppaw and Troxell. Nays: Horak, Weitkunat, Cunniff and Campana. THE MOTION FAILED. Other Business Vice-Chair Horak commended the work of the URA Finance Committee but suggested additional information be presented to the Board as part of the Finance Committee vetting process. Adjournment The meeting adjourned at 7:16 p.m. _________________________________ Chair ATTEST: _____________________________ Secretary Packet Pg. 14 Attachment1.1: March 4, 2014 URA minutes (URA Minutes - 0304) Agenda Item 2 Item # 2 Page 1 AGENDA ITEM SUMMARY April 15, 2014 Urban Renewal Authority Board STAFF Darin Atteberry, City Manager Mike Beckstead, Chief Financial Officer SUBJECT Resolution No. 070 Approving An Amendment To The Redevelopment And Reimbursement Agreement With The City , Walton Foothills Holdings Vi, L.L.C., And The Foothills Metropolitan District Regarding The Redevelopment of Foothills Mall. EXECUTIVE SUMMARY The purpose of this item is to amend the Foothills Mall Redevelopment Agreement. The Developer has asked to amend Section 3.1 - Conditions Precedent to Issuance of District Bonds of the Agreement, to allow the Metro District Bonds to be issued with 155k square feet of executed leases vs. the 240k square feet required in the current agreement. The Developer is also asking for clarification to Section 4.3 - Construction of Residential Component of Project: Affordable Housing, concerning the period of time the Developer may be required to make payments to the City if there is a delay in the completion of the residential units. STAFF RECOMMENDATION Staff recommends adoption of the Resolution. BACKGROUND / DISCUSSION Amendment to Section 3.1(c) Section 3.1 - Conditions Precedent to Issuance of District Bonds was included in the agreement to provide the City assurance that prior to the City granting authorization to the District to issue the bonds that the project financing is in place and all project approvals have been received. Section 3.1 details 7 conditions that must be met by the Developer prior to the issuance of the District Bonds. The seven conditions are summarized below: a. District Financing Plan approved by the City Manager. b. Provide evidence that the Developer has obtained all equity and private financing necessary to construct the non-residential components of the Project. c. Obtain 240k square feet of executed leased space with 120k square feet of tenants new to Fort Collins at an average sales per square foot of $375. d. Add-On PIF imposed in accordance with Section 4.7. e. Obtain all Development Approvals for the Project. f. Satisfactory opinion by District’s bond counsel. g. No event of default shall have occurred. The Developer has indicated they are prepared to meet 6 of these conditions and are requesting a modification to 3.1(c), concerning the square footage of lease space required before issuance. The Developer currently has approximately 90k square feet of leases executed and anticipates having approximately 195k square feet leased by May 2014. A combination of factors has negatively impacted the current volume of executed leases: Packet Pg. 15 Agenda Item 2 Item # 2 Page 2 1. The delay from an anticipated 2014 opening to a 2015 opening. 2. Timing uncertainty of the 2015 opening until the Redevelopment Agreement was signed in January of 2014. 3. A leasing strategy that focuses on critical retailers first, who once signed, will attract other quality retailers. 4. Retailers are currently focused on leases for 2014 openings and will focus on leases to support 2015 openings later in this year. The Developer has requested an amendment to the agreement that would allow for the issuance of District bonds with 155k square feet leased including 90k square feet of tenants new to Fort Collins. However, only $23M of the $53M of bond proceeds would be released to the project. The remaining $30M of bond proceeds would be held in escrow by the Bond Trustee and would only be released in tranches to the project as additional leases are executed by the developer. Table A Lease Space Sq Ft Funds Released Percent of… Tranche Total New to Fort Collins Funds Released Assigned to City Improv Orig 240k Mall (less Macy's) Current 240k 120k $ 53 $ 8 100% 47% Request 1 155k 90k $ 23 $ 3 65% 30% 2 205k 120k 33 1 85% 40% 3 255k 130k 43 2 106% 50% 4 310k 150k 53 2 129% 60% Table A details the additional square feet of executed leases required by the developer to receive additional funding. As each 50k of additional leases are executed, combined with a corresponding increase in leases associated with tenants new to Fort Collins, funding will be released by the Bond Trustee in increments of $10M. In comparison to the original agreement, the Developer must now obtain 310k square feet of executed leases (60% of the total Mall) before all funds are made available (vs. 240k square feet (47% of the total Mall) in the original agreement). The amount of leased space to tenants new to Fort Collins has also increased from 120k to 150k. In addition, a portion of each tranche released would be assigned to the Underpass and Foothills Activity Center portion of the project. Waiting until the developer has obtained the required 240k square feet of leased space prior to the issuance of the bonds could have multiple adverse effects on the project: 1. The equity partner and the construction financier require all funding be closed simultaneously. A delay in the issuance of the District Bonds will delay the closing on the construction financing. 2. A delay in the close of the project financing opens the possibility of rising interest rates adding significant cost to the project. 3. Construction timing is critical, a delay of several weeks in closing all financing will delay construction start-up which in turn will delay the opening in 2015. 4. A delay in the 2015 mall opening will void current executed leases which specify a 2015 opening. 5. A delay in the 2015 mall opening will put at risk other interested retailers given the projects timing uncertainty. Some of these retailers may elect to locate elsewhere within the northern Colorado region Agenda Item 2 Item # 2 Page 3 The Developer’s Equity Partner, has agreed to provide additional security and financing to support the project and maintain the current timeline. Current equity investment in the project is approximately $57M and will most likely increase by the time all financing is closed. This is 40% to 50% higher than their original intentions. In addition, the Equity Partner has agreed to provide 100% recourse vs. the normal 50% recourse on the $100M plus construction loan. Both actions demonstrate confidence in the project. Risks and Implications Associated with the Amendment to Section 3.1(c): Risks and implications associated with the amendment vary by party associated with the agreement. Risks revolve around what can be described as “Start-Up Risk”. Start-Up Risk can be defined as the bonds are issued but something catastrophic occurs that prevents the mall from being completed and fully leased out. City Risk/Implications - In the event the bonds are issued and the mall is not completed, there is no financial obligation on the part of the City beyond the pledge of Sales Tax Increment from sales at the Mall. Issuing the bonds with 155k vs. 240k square feet of leased space does not increase financial risk to the City. The structure of financing was intentionally set up to issue the bonds via the Metro District, avoid creating a debt obligation on the part of the City and allow the City to avoid the Start-Up Risk. Interest Rate Risk - Current macro-economic indicators point to a rising interest rate environment in the near term. A delay in the issuance of the bonds in a rising rate environment could have a significant impact on the financing cost of the project. A 1% increase in interest rates on the bonds (all else held constant) would require an additional $17M of Sales Tax Increment from the URA to meet the bond payments. The Developer would also potentially experience additional financing costs associated with the construction loan. Developer Risk/Implications - The Developer will not have a financial gain with the proposed amendment. The benefit to the Developer is the project would proceed on the current planned timeline without the adverse impact of the effects of a delay described above. Metro District Risk/Implications - The risk to the District is related to Start-Up Risk and when such an event occurred relative to the square footage of executed leases. If an event occurred after 240k square feet of leases are executed, in the current agreement, all $72M of bonds would be issued and outstanding. In the amended agreement, only $33M of the bond proceeds would have been disbursed and the remaining $20M of proceeds would be available for an extraordinary redemption of outstanding bonds, thereby reducing the future obligations of the District. If the event occurred prior to the Developer achieving 255k square feet of executed leases, the amended agreement would be beneficial to the District. If such an event occurred after 310k square feet of executed leases were obtained, there is no difference between the two alternatives. If an event occurred after 155k square feet of leases were executed but before 240k square feet of leases were executed, in the current agreement, no bonds would have been issued. In the amended agreement, $23M to $33M of the bond proceeds would have been disbursed and the remaining $20M to $30M of proceeds would be available for an extraordinary redemption of the outstanding bonds. There is risk in the amended agreement during the time it takes the Developer to move from 155k to 240k square feet of leased space. Again, there is no financial risk to the City in this case. This risk can be evaluated based on two factors - probability and severity. The probability of an event occurring during the 4-6 months it will take the Developer to acquire the 240k square feet of leases vs. the 155k square feet of leases is very low. The severity could be high. Approximately $41M of bonds would be outstanding plus additional capitalized interest would be incurred if $30M of proceeds were used for an early redemption. The Start-Up Risk exists with the current agreement and with the amended agreement, the difference relates to whether an event would occur during the next 4-6 months that would ultimately cause the Bonds to not be issued. Because (1) there is no added risk to the City, (2) the risk to the District is not significantly different between authorizing bonds with 240k of leased space vs. authorizing bonds with 155k of lease space and putting funds in escrow that can only be fully released once 310k of space is leased,( 3) the risk of delay to the construction Packet Pg. 17 Agenda Item 2 Item # 2 Page 4 timeline would most likely adversely impact the projects lease opportunities and completion dates, and 4) potential higher interest rates with a late 2014 issuance would require additional sales tax increment to cover bond payments, staff recommends making the requested modifications to the agreement. Amendment to Section 4.3 Section 4.3 - Construction of Residential Component of Project: Affordable Housing. of the agreement was intended to provide a partial offset to lost residential property tax increment in the event the developer does not meet the construction completion dates described in section 4.3. The 50% payments of the lost property tax revenue by the developer was intended to only be in effect until the residential units are completed and property tax revenue begins to flow to the URA and then to the Metro District. The current wording in the agreement has been questioned by the District bond council, who interpret the current wording to require the developer to continue making the 50% payments after the residential units are complete if the original construction completion dates in the agreement are not met. Staff concurs this was not the intent of this section and agree clarification is needed to indicate the 50% payment is only required if the construction completion dates within the agreement are not met and only until the residential units are complete and tax revenue is realized by the Metro District. The Council Finance Committee will review this item on Friday, April 11. Draft minutes from that meeting will be provided in the read-before packet on Tuesday, April 15. FINANCIAL / ECONOMIC IMPACTS Financial impacts are covered within the Risk/Implications section above. ATTACHMENTS 1. First Amendment to the Redevelopment and Reimbursement Agreement-Redline version (PDF) 2. Powerpoint presentation (PDF) Packet Pg. 18 1 FIRST AMENDMENT TO REDEVELOPMENT AND REIMBURSEMENT AGREEMENT THIS FIRST AMENDMENT TO REDEVELOPMENT AND REIMBURSEMENT AGREEMENT (the “Amendment”) dated as of April __, 2014, is made by and among the FORT COLLINS URBAN RENEWAL AUTHORITY, a body corporate and politic of the State of Colorado (the “Authority”), WALTON FOOTHILLS HOLDINGS VI, L.L.C., a Delaware limited liability company (the “Developer”), the CITY OF FORT COLLINS, COLORADO, a municipal corporation (the “City”), and FOOTHILLS METROPOLITAN DISTRICT, a quasi- municipal corporation organized and existing in accordance with Title 32, Article 1, C.R.S. (the “District”). The Authority, the Developer, the City and the District are sometimes collectively called the “Parties,” and individually, a “Party.” RECITALS WHEREAS, on January 17, 2014, the Parties entered into that certain Redevelopment and Reimbursement Agreement (the “Agreement”); and WHEREAS, the Developer has requested an amendment to the Agreement that would change one condition precedent to the issuance of District Bonds so as to allow their issuance upon the Developer’s having leased 155,000 square feet, 90,000 of which must to be tenants new to Fort Collins, rather than the currently required 240,000 square feet; and WHEREAS, as a condition of agreeing to this change, the Developer has agreed to certain restrictions on the release of a portion of the District Bond proceeds to tie their release to additional leasing performance; and WHEREAS, in addition, the Parties have determined that certain other clarifications to the language of the Agreement will be mutually beneficial. NOW THEREFORE, in consideration of the mutual covenants and promises of the Parties contained in this Agreement, and other valuable consideration, the receipt and adequacy of which are acknowledged, the Parties agree to the terms and conditions in this Agreement. AGREEMENT 1. DEFINED TERMS AND RECITALS INCORPORATED. All terms used in this Amendment and defined in the Agreement shall have the meanings ascribed to them in the Agreement, except as otherwise expressly provided herein. All recitals set forth in the Agreement and in this Amendment, above, are incorporated into the Agreement as amended by this Amendment as though fully set forth in the body hereof. Packet Pg. 19 Attachment2.1: First Amendment to the Redevelopment and Reimbursement Agreement-Redline version (URA-Foothills Mall Redevelopment 2 2. DEFINITION ADDED. Section 1 of the Agreement is amendment to add a definition of the term “Tenant New to Fort Collins”, as follows: “Tenant New to Fort Collins” means any tenant other than a tenant that is relocating to the Project an existing business that was operating under a City of Fort Collins sales tax license as of the date of the Agreement or this Amendment. 3. AMENDMENT TO SECTION 3.1. Section 3.1 of the Agreement is hereby amended to read as follows: 3.1 Conditions Precedent to Issuance of District Bonds. The following conditions shall be satisfied on or prior to the issuance of the District Bonds: (a) The Developer and the District shall prepare the Financing Plan and the City Manager and the Executive Director of the Authority shall have approved the Financing Plan. The Financing Plan shall also be in form and substance satisfactory to the District’s bond counsel and the underwriter of the District Bonds. The Financing Plan shall demonstrate that there is expected to be sufficient Pledged Revenues derived from the construction of the Project to pay the debt service requirements on the District Bonds when due. (b) The Developer shall provide to the City Manager the following evidence satisfactory to the City Manager that the Developer has obtained all equity and private financing necessary to construct the non-residential components of the Project: (1) Developer shall certify that it has expended no less than $57 million on the Project, representing the Developer’s equity commitment as of the closing of the District Bonds; and (2) Developer shall demonstrate that it has a closed construction loan with a commitment from the construction lender to fund an amount not less than the difference between the construction costs of the Project and the total of the net bond proceeds and the Developer’s equity commitment described in Section 3.1(b)(1), which construction loan shall provide recourse for one hundred percent (100%) of the loan amount against an entity (or entities) that own(s) substantially all of and controls(s) the Developer. Such recourse may be subject to decreases over time as certain financial tests and leasing tests are achieved. The City’s Financial Officer and City Attorney (or their delegates) shall be entitled to review the loan agreement and related documents, including, but not limited to, any promissory note and all related guarantees and deeds of trust, to verify compliance with this requirement. (c) The Developer shall have obtained executed lease agreements, excluding the existing department store located on Larimer County Parcel Number 9725391002, Packet Pg. 20 Attachment2.1: First Amendment to the Redevelopment and Reimbursement Agreement-Redline version (URA-Foothills Mall Redevelopment 3 totaling at least 240,000155,000 square footage of the retail area of the Project with tenants that, in the aggregate, have an average sales per square foot of at least $375 based on average national sales performance, and, except as hereinafter provided, of which at least 90,000120,000 square feet shall be leased to Tenants New to the City of Fort Collins. Notwithstanding the foregoing, however, in the event that at least 60,000 of such square footage is leased to tenants that are new to Fort Collins, then this minimum requirement of 120,000 square feet shall be deemed satisfied with the prior written consent of the City Manager, which consent shall not be unreasonably withheld, conditioned or delayed, provided that in determining whether to give such consent the City Manager may consider the impact on the proposed financing from a reduced percentage of tenants new to the City. The Developer shall certify to the City upon the City’s request that the conditions of this Subsection (c), excluding verification of the sales per square foot requirement, have been met in full. (d) The Developer shall have imposed the Add-On PIF in accordance with Section 4.7 hereof. (e) The Developer shall have obtained the Development Approvals for the Project, as described in this Agreement and in Exhibit C. (f) The City and the Authority shall receive an opinion of the District’s bond counsel that the District Bonds have been validly issued and opining as to the tax-exempt status of the bonds, which opinion shall be addressed to the City and the Authority, or the City and the Authority shall receive a reliance letter from the District’s bond counsel. (g) No Event of Default hereunder shall have occurred and be continuing hereunder, unless such Event of Default has been cured, remedied or waived, or a remedy has been agreed upon by the Parties which will become effective with the passage of time. 4. AMENDMENT TO SECTION 3.2. Section 3.2 is hereby amended to read as follows: 3.2 Provisions to be Included in District Bond Documents. The District Bond Documents shall contain the following provisions: (a) The District Bonds shall be payable from the Pledged Revenues in the following order of priority: (i) the District Debt Service Mill Levy Revenues; (ii) the Pledged District Specific Ownership Taxes; (iii) the Pledged Property Tax Increment Revenues; (iv) the Add-On PIF Revenues; and Packet Pg. 21 Attachment2.1: First Amendment to the Redevelopment and Reimbursement Agreement-Redline version (URA-Foothills Mall Redevelopment 4 (iii) the Pledged Sales Tax Increment Revenues. (b) The District Bond proceeds may only be made available to the District in tranches, upon the achievement by Developer of threshold requirements for executed leases for tenants as set forth in the table below. The parties acknowledge that, as provided in Section 3.1(c) above, attainment of the threshold for the first such tranche is a condition precedent of issuance of the District Bonds. As to tranches 1, 2 and 3 only, the tenants comprising the required threshold shall have an average sales per square foot of at least $375 in the aggregate based on average national sales. A portion of each tranche shall be allocated to the Underpass and Foothills Activity Center improvements as set forth in the table below. The balance of the available proceeds within each tranche may be spent without restriction, except as otherwise set forth in this Agreement. (c) If, on the third anniversary date of the issuance of the District Bonds, any portion of the District Bond proceeds that has not been disbursed as a result of failure to meet one or more leasing thresholds described in Section 3.2(b), then the remaining undisbursed proceeds shall be used to carry out the mandatory extraordinary redemption of a corresponding portion of the District Bonds. (bd) After the debt service requirements on the District Bonds have been paid or provided for in each Fiscal Year, and after all payments have been made to replenish the reserve fund for the District Bonds and to make any payments into any required rebate funds for the District Bonds, any excess Pledged Revenues shall be applied by the District Bond Trustee as follows: 5. AMENDMENT TO SECTION 4.1. Section 4.1 is hereby amended to read as follows: Tranche Cumulative Total Square Feet of Executed Lease Agreements Total Amount of Bond Proceeds Disbursed in Tranche Cumulative Total Amount of Bond Proceeds Disbursed Minimum Bond Proceeds for Underpass and Foothills Activity Center (FAC) 1 155,000 $23M $23M $3M (Underpass) 2 205,000 $10M $33M $1M (FAC) 3 255,000 $10M $43M $2M (FAC) 4 310,000 $10M $53M $2M (FAC) Packet Pg. 22 Attachment2.1: First Amendment to the Redevelopment and Reimbursement Agreement-Redline version (URA-Foothills Mall Redevelopment 5 4.1 Construction of Project. As set forth in Section 2.1 hereof, the Developer and/or the District shall construct the Project. The Project shall be constructed substantially in accordance with the Development Approvals and Exhibit C attached hereto. Additionally, as construction proceeds on the Project, Developer shall comply with the following requirements. (a) Developer shall provide a monthly written status report to the City regarding the status of construction of the Project with respect to the overall schedule. The City acknowledges that Developer has identified or may identify certain information contained in such reports as confidential, proprietary business information. The City agrees that it will maintain the confidentiality of such information except as required by applicable law. If the City is requested to disclose information identified by Developer as confidential and if the City believes it is legally required to make disclosure of such information, the City will notify Developer at least two business days prior to making such disclosure, so as to permit Developer to propose appropriate redactions or seek a judicial declaration preventing disclosure. The Developer shall reimburse the City for any attorneys’ fees or costs incurred by the City or that the City is ordered to pay in connection with such proceedings. (b) Developer shall certify to the City prior to the release of each tranche of District Bond proceeds as set forth in Section 3.2(b) that the total square footage of leases to Tenants New to Fort Collins meets the minimum threshold for such tranche as set forth in the table below: Tranche Total Square Feet of Executed Lease Agreements Total Leasing to Tenants New to Fort Collins 1 155,000 90,000 2 205,000 110,000 3 255,000 130,000 4 310,000 150,000 (c) Developer shall also provide monthly reports to the City which include the following information: (i) the percentage of the total square footage to be leased for which leases have been executed; (ii) the percentage of the total square footage to be leased for which letters of intent have been executed; and (iii) the percentage of the total square footage to be leased that is under negotiation. The City acknowledges that Developer has identified or may identify certain information provided under this subsection as confidential, proprietary business information. The City agrees that it will maintain the confidentiality of such information to the same extent and under the same terms and conditions as set forth in Section 4.1(a), above. 6. AMENDMENT TO SECTION 4.3. Section 4.3 is hereby amended to read as follows: Packet Pg. 23 Attachment2.1: First Amendment to the Redevelopment and Reimbursement Agreement-Redline version (URA-Foothills Mall Redevelopment 6 4.3 Construction of Residential Component of Project; Affordable Housing. The Developer shall Complete Construction of the residential components of the Project, subject to Force Majeure, as follows: (a) on or prior to December 31, 2016, the Developer shall Complete Construction of the first phase of the residential component of the Project consisting of a minimum of 200 units; (b) on or prior to December 31, 2018, the Developer shall Complete Construction of the second phase of the residential component of the Project consisting of at least an additional 246 units. Failure to Complete Construction of the residential components of the Project in accordance with this Section 4.3 shall not be deemed to be an Event of Default under this Agreement, provided, however, that if Construction of the residential components of the Project is not Completed as set forth above, then beginning with the 2020 Fiscal Year, the Developer shall be obligated to pay in such Fiscal Year and each Fiscal Year thereafter, regardless of whether the Developer is the owner of the Property on which the residential component of the Project is to be constructed, an amount equal to 50% of the difference between the Pledged Revenues generated from the residential component of the Project and the Estimated Revenues from the Residential Property, as follows: (i) such payment shall be made to the City to the extent that any Pledged Sales Tax Increment Revenues are applied in such fiscal year to the payment of the debt service requirements on the District Bonds; and (ii) to the extent that such payment is not due and owing to the City in any fiscal year, the balance of any such amount to be paid by the Developer in such fiscal year shall be applied toward principal on the District Bonds. Said payment shall be made in each fiscal year until either: (1) the pledge of any Authority Pledged Revenues has ceased; or (2) property taxes are due from the residential component of the Project for 446 units that have been assessed as 100% complete. The Project shall pay any affordable housing fees that may be enacted by the City Council on or before December 1, 2014, as if such fees had been in place and applicable to the Project. Any affordable housing impact fee that may be adopted as part of such requirements shall be paid by the Developer when due for the Project, except that for any portion of the Project developed prior to the imposition of the fee, such fee shall be paid no later than sixty days after adoption. 7. AMENDMENT TO SECTION 4.8. Section 4.8 of the Agreement is hereby amended to read as follows: 4.8 Access to Property. Developer will make arrangements for representatives of the City, including elected officials and staff, and the public, to participate in regular tours of the Property during construction, which tours shall be conducted no less frequently than once per month. Additionally, Developer will permit representatives of the City and the Authority access to the Property and the Project at reasonable times during regular business hours and with prior notice as necessary for the purpose of carrying out or determining compliance with the Packet Pg. 24 Attachment2.1: First Amendment to the Redevelopment and Reimbursement Agreement-Redline version (URA-Foothills Mall Redevelopment 7 Agreement, the Urban Renewal Plan, or any City code or ordinance, including, without limitation, inspection of any work being conducted. No compensation will be payable for such access. The City and the Authority, as applicable, agree to restore the Property and any component of the Project to its condition prior to any tests or inspections made by the City and further agree that they shall be responsible for any damage that results from the City or the Authority, as applicable, accessing the Property pursuant to their respective rights under this Agreement, to the extent permitted by law and, in the case of the City, subject to annual appropriation of funds by the City Council, in its sole discretion. 8. VALIDITY OF REMAINING PROVISIONS. All provisions of the Redevelopment Agreement that are not expressly amended herein shall remain in full force and effect and continue to bind the parties thereto. IN WITNESS WHEREOF, this Amendment is executed by the Parties as of April __, 2014. FORT COLLINS URBAN RENEWAL AUTHORITY _____________________________________ Gerry Horak, Vice Chairperson ATTEST: _____________________________ Darin Atteberry, Executive Director Notice Address: Fort Collins Urban Renewal Authority 300 LaPorte Avenue P.O. Box 580 Fort Collins, CO 80522 Attention: Darin Atteberry, Executive Director Email: datteberry@fcgov.com Packet Pg. 25 Attachment2.1: First Amendment to the Redevelopment and Reimbursement Agreement-Redline version (URA-Foothills Mall Redevelopment 8 CITY OF FORT COLLINS, COLORADO By: Gerry Horak, Mayor Pro Tem (SEAL) ATTEST: _______________________ Wanda Nelson, City Clerk APPROVED AS TO FORM _______________________ Carrie Mineart Daggett, Deputy City Attorney Notice Address: City of Fort Collins 300 LaPorte Avenue P.O. Box 580 Fort Collins, Colorado 80522 Attention: Carrie Mineart Daggett, Esq., Deputy City Attorney Email: cdaggett@fcgov.com Packet Pg. 26 Attachment2.1: First Amendment to the Redevelopment and Reimbursement Agreement-Redline version (URA-Foothills Mall Redevelopment 9 FOOTHILLS METROPOLITAN DISTRICT _________________________________ ATTEST: ________________________, President _____________________________ Secretary Notice Address: c/o White, Bear and Ankele, P.C. The Streets at Southglenn 2154 E. Commons Avenue, Suite 2000 Centennial, CO 80122 Attention: Kristen Bear Email: kbear@wbapc.com Packet Pg. 27 Attachment2.1: First Amendment to the Redevelopment and Reimbursement Agreement-Redline version (URA-Foothills Mall Redevelopment 10 WALTON FOOTHILLS HOLDINGS VI, L.L.C., a Delaware limited liability company By: Foothills Alberta Management, LLC, a Colorado limited liability company Its: Authorized Agent By: ____________________________ Donald G. Provost Its: Manager Notice Address: Walton Foothills Holdings VI, L.L.C. 5750 DTC Pkwy, Suite 210 Greenwood Village, CO 80111 Attention: Donald G. Provost Email: dgp@albdev.com With a copy to: Brownstein Hyatt Farber Schreck, LLP 410 Seventeenth Street, Suite 2200 Denver, CO 80202 Attention: Carolynne C. White, Esq. Email: cwhite@bhfs.com Packet Pg. 28 Attachment2.1: First Amendment to the Redevelopment and Reimbursement Agreement-Redline version (URA-Foothills Mall Redevelopment 1 Foothills Mall Redevelopment First Amendment to Redevelopment Agreement April 15, 2014 Packet Pg. 29 Attachment2.2: Powerpoint presentation (URA-Foothills Mall Redevelopment Agreement Amendment) 2 Developer Request 1. Modification to Section 3.1(c) concerning leased space required prior to City authorization to issue Metro District Bonds 2. Clarification to Section 4.3 concerning payment required of the Developer if the residential units are not completed on time Packet Pg. 30 Attachment2.2: Powerpoint presentation (URA-Foothills Mall Redevelopment Agreement Amendment) 3 Seven Conditions Precedent to Issuance of Bonds Developer has Indicated All Conditions Will Be Met With The Exception of (c) a) Financing Plan approved by City Manager – demonstrates sufficient pledged revenue to meet debt service requirements b) Obtained all equity and private financing necessary to construct the non-residential component of the project c) 240k square feet of executed leased space with 120k square feet new tenants to Fort Collins d) Add-On PIF imposed in accordance with Section 4.7 e) Developer obtained all Development Approvals for the Project f) Satisfactory opinion by District’s bond counsel g) There is no event of default Packet Pg. 31 Attachment2.2: Powerpoint presentation (URA-Foothills Mall Redevelopment Agreement Amendment) 4 Section 3.1(c) Request Allows Bonds to be Issued with 155k sq. ft. of Leased Space…. $23M of Funds Disbursed…. Remaining Funds Released as Leasing Grows to 310k sq. ft. Current Agreement requirement prior to bond issuance: • Developer to have obtained 240k of executed lease agreements • 120k of the 240k to be new tenants to Fort Collins • If 60k-120k of new tenants – subject to consent of City Manager • Leases to have an average sales per square foot of at least $375 Modification Requested: • Bonds issued with 155k of executed lease agreements • 90k of the 155k to be new tenants to Fort Collins • Leases to have an average sales per square foot of at least $375 • $23M of $53M in bond proceeds released to Developer • Remaining $30M held in escrow & released in $10M tranches as additional leases signed – final release at 310k • Portion of leases new to Fort Collins is laddered to total leases Packet Pg. 32 Attachment2.2: Powerpoint presentation (URA-Foothills Mall Redevelopment Agreement Amendment) 5 Section 3.1(c) Request Equity Position and Recourse Commitment are Above Normal…. Demonstrates Confidence in the Project Total New to Fort Collins Funds Released Assigned to City Improv Orig 240k Mall (less Macy's) Current 240k 120k $ 53 $ 8 100% 47% Request 155k 90k $ 23 $ 3 65% 30% 205k 120k 33 1 85% 40% 255k 130k 43 2 106% 50% 310k 150k 53 2 129% 60% Lease Space Sq Ft Funds Released Percent of… Additional Considerations by the Developer & Equity Partner: • Equity Position higher than original intent • Equity Partner 100% recourse on the construction loan • Monthly status reports on leasing & Quarterly tours of the project ($ millions) Packet Pg. 33 Attachment2.2: Powerpoint presentation (URA-Foothills Mall Redevelopment Agreement Amendment) 6 Risk & Implications No Additional Financial Risk to the City…. District Risk Related to a Low Probability Event in next 6 Months City Financial Risk: • No financial risk to the City – Metro District Bonds • Avoids interest rate risk associated with late 2014 issuance Developer Financials: • No benefit to the Developer’s financial position Metro District Risk: • Start-Up Risk – bonds are issued and the Mall is not completed • Bonds issued with 155k sq. ft. of leased vs. 240K sq. ft. • If Start-Up Risk occurs between 155k & 240k • Added Risk - bonds are issued and project stalls • If Start-Up Risk occurs after 240k leased • Reduced or Equal Risk - $30M bond pay down results in $41M bonds outstanding after 3 years. Packet Pg. 34 Attachment2.2: Powerpoint presentation (URA-Foothills Mall Redevelopment Agreement Amendment) 7 Critical Mass & Timing Critical Mass Required Redevelopment Agreement Leasing Strategy Equity Financing Construction Timeline All Elements Must Come Together Simultaneously…. Date Which Can Impact Leasing Strategy All Elements Must Come Together Simultaneously…. If One Element is Delayed, the Ripple can Impact the Completion Date Which Can Impact Leasing Strategy • Redevelopment Agreement linked to Date Certainty • Date Certainty Influences Leasing Strategy • All Financing Needs to Close Simultaneously • Financing Needs to Close in Time to Allow Construction to Achieve Completion Date Packet Pg. 35 Attachment2.2: Powerpoint presentation (URA-Foothills Mall Redevelopment Agreement Amendment) 8 Section 4.3 Clarification Clarification Requested is Consistent with the Original Intent • Intent of the original Section 4.3 was to require the Developer to pay 50% of the lost property tax increment in the event the residential units were delayed. • But only until such time as the residential units are built and property tax increment is being paid. • Clarification added to Section 4.3: “Said payment shall be made in each fiscal year until either: 1) the pledge of any authority pledged revenue has ceased; or 2) property taxes are due from the residential component of the Project for 446 units that have been assessed as 100% complete.” Packet Pg. 36 Attachment2.2: Powerpoint presentation (URA-Foothills Mall Redevelopment Agreement Amendment) 9 Developer Request 1. Modification to Section 3.1(c) concerning leased space required prior to City authorization to issue Metro District Bonds 2. Clarification to Section 4.3 concerning payment required of the Developer if the residential units are not completed on time Packet Pg. 37 Attachment2.2: Powerpoint presentation (URA-Foothills Mall Redevelopment Agreement Amendment) - 1 - RESOLUTION NO. 070 OF THE BOARD OF COMMISSIONERS OF THE FORT COLLINS URBAN RENEWAL AUTHORITY APPROVING AN AMENDMENT TO THE REDEVELOPMENT AND REIMBURSEMENT AGREEMENT WITH THE CITY OF FORT COLLINS, WALTON FOOTHILLS HOLDINGS VI, L.L.C., AND THE FOOTHILLS METROPOLITAN DISTRICT REGARDING THE REDEVELOPMENT OF FOOTHILLS MALL WHEREAS, on May 8, 2013, the Board adopted Resolution No. 055, approving a Redevelopment and Reimbursement Agreement among the Fort Collins Urban Renewal Authority (the “Authority”), the City of Fort Collins (the “City”), Walton Foothills Holdings VI, L.L.C. (the “Developer”), and the Foothills Metropolitan District (the “District”) regarding the redevelopment of Foothills Mall; and WHEREAS, on January 14, 2014, the Board adopted Resolution No. 068, approving an updated Redevelopment and Reimbursement Agreement among the Authority, the City, the Developer, and the District regarding the redevelopment of Foothills Mall (the “Agreement”); and WHEREAS, in Resolution No. 055 and Resolution No. 068, the Board stated its finding that it is in the best interests of the Authority to provide financial assistance to the Foothills Mall redevelopment project (the “Mall Project”) in order to remedy blighted conditions within and around the Mall pursuant to the Midtown Urban Renewal Plan, using certain property and sales tax increment revenues in accordance with the Act, together with certain available revenues of the District and the Developer, to provide a catalyst for redevelopment in the Midtown Urban Renewal Area, to increase sales tax revenues and job opportunities, and to provide other economic and social benefits to the City and surrounding community; and WHEREAS, on January 17, 2014, the final version of the Agreement was signed by all parties, and was placed on file in the Office of the City Clerk; and WHEREAS, following the completion of the Agreement, the Mall Project has continued to move forward, and a formal groundbreaking ceremony for the Mall Project took place on February 26, 2014; and WHEREAS, the Developer has requested an amendment to the Agreement that would change one condition precedent to the issuance of District bonds so as to allow their issuance upon the Developer’s having leased 155,000 square feet, 90,000 of which must to be tenants new to Fort Collins, rather than the currently required 240,000 square feet; and WHEREAS, as a condition of the City agreeing to this change, the Developer has agreed to certain restrictions on the release of a portion of the District bond proceeds to tie their release to additional leasing performance; and Packet Pg. 38 - 2 - WHEREAS, in addition, $8 million in District bond proceeds allocated to the College Avenue Underpass and Foothills Activity Center elements of the Mall Project will be reserved exclusively for that purpose, as part of the release conditions; and WHEREAS, in order to document and make enforceable these proposed terms and conditions, the parties have also negotiated modifications to the language of the Agreement that are described in the First Amendment to Redevelopment and Reimbursement Agreement attached hereto as Exhibit “A” and incorporated herein by this reference (the “Amendment”); and WHEREAS, Authority staff has recommended that the Authority agree to the proposed changes to the leasing conditions set forth in the Amendment, to avoid the costs and other detriments associated with a delay in the issuance of the District bonds called for under the Agreement; and WHEREAS, as part of the Amendment, the Developer has also agreed to provide additional security and financing to support the Mall Project and maintain the current timeline for completion; and WHEREAS, in light of the foregoing, the Board desires to approve the Amendment. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE FORT COLLINS URBAN RENEWAL AUTHORITY, as follows: Section 1. Ratification and Approval of Prior Actions. The Board hereby ratifies, approves and confirms all action heretofore taken (not inconsistent with the provisions of this Resolution) by the Board or the officers of the Board or the Authority named in this Resolution relating to the redevelopment of the Mall Project, the execution and delivery of the Agreement and the Amendment, and the performance of the Authority’s obligations under the Agreement and related documents. Section 2. Finding of Best Interests and Public Purpose. The Authority hereby finds and determines, pursuant to the Constitution, the laws of the State, and in accordance with the foregoing recitals, that adopting this Resolution, providing the specified assistance for the Mall Project, and entering into the Agreement and the Amendment and performing all obligations set forth therein, are necessary, convenient, and in furtherance of the Authority’s purposes, and will serve the important public purposes of remedying blighted conditions within and around the Foothills Mall pursuant to the Midtown Urban Renewal Plan, providing a catalyst for redevelopment in the Midtown Urban Renewal Area, increasing sales tax revenues and job opportunities, and providing other economic and social benefits to the Midtown Urban Renewal Area and surrounding community, and the Board hereby authorizes and approves the same. Section 3. Approval of Amendment. The Amendment, in substantially the form attached hereto as Exhibit “A”, is in all respects approved, authorized and confirmed. Packet Pg. 39 - 3 - Section 4. Authorization to Execute. The Board President is hereby authorized and directed to execute and deliver the Amendment, for and on behalf of the Authority, in substantially the form and with substantially the same content as attached, provided that the approval hereby given to the Amendment includes an approval of such additional details therein, deletions therefrom, or additions thereto as the Authority Executive Director, in consultation with the Authority’s legal counsel, determines to be necessary and appropriate for its completion, or desirable to protect the interests of the Authority. The execution of the Amendment by the Board President shall be conclusive evidence of the approval by the Board of the same in accordance with the terms of this Resolution and the Amendment. Section 5. Direction to Act. The City Clerk, acting as Secretary of the Board, is hereby authorized and directed to attest all signatures and acts of any official of the Authority in connection with the matters authorized by this Resolution. The Board President, the Board Vice President, the Executive Director of the Authority, the Secretary of the Board, and other appropriate officials or employees of the Authority are hereby authorized and directed to execute and deliver for and on behalf of the Authority any and all additional certificates, documents, instruments and other papers, and to perform all other acts that they deem necessary or appropriate, in order to implement and carry out the transactions and other matters authorized by this Resolution. The execution of any instrument by the aforementioned officers or members of the Authority shall be conclusive evidence of the approval by the Authority of such instrument in accordance with the terms of this Resolution and the Amendment. Section 6. Severability. If any section, subsection, paragraph, clause or provision of this Resolution or the Amendment hereby authorized and approved shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of such section, subsection, paragraph, clause or provision shall not affect any of the remaining provisions of this Resolution or the Amendment, the intent being that the same are severable. Section 7. Repealer. All prior resolutions, or parts thereof, inconsistent herewith are hereby repealed to the extent of such inconsistency. Section 8. Effectiveness. This Resolution shall take effect immediately upon its passage. Passed and adopted at a regular meeting of the Board of Commissioners of the Fort Collins Urban Renewal Authority of Fort Collins this 15th day of April, A.D. 2014. _________________________________ Vice-Chairperson ATTEST: _____________________________ Secretary Packet Pg. 40 1 FIRST AMENDMENT TO REDEVELOPMENT AND REIMBURSEMENT AGREEMENT THIS FIRST AMENDMENT TO REDEVELOPMENT AND REIMBURSEMENT AGREEMENT (the “Amendment”) dated as of April __, 2014, is made by and among the FORT COLLINS URBAN RENEWAL AUTHORITY, a body corporate and politic of the State of Colorado (the “Authority”), WALTON FOOTHILLS HOLDINGS VI, L.L.C., a Delaware limited liability company (the “Developer”), the CITY OF FORT COLLINS, COLORADO, a municipal corporation (the “City”), and FOOTHILLS METROPOLITAN DISTRICT, a quasi- municipal corporation organized and existing in accordance with Title 32, Article 1, C.R.S. (the “District”). The Authority, the Developer, the City and the District are sometimes collectively called the “Parties,” and individually, a “Party.” RECITALS WHEREAS, on January 17, 2014, the Parties entered into that certain Redevelopment and Reimbursement Agreement (the “Agreement”); and WHEREAS, the Developer has requested an amendment to the Agreement that would change one condition precedent to the issuance of District Bonds so as to allow their issuance upon the Developer’s having leased 155,000 square feet, 90,000 of which must to be tenants new to Fort Collins, rather than the currently required 240,000 square feet; and WHEREAS, as a condition of agreeing to this change, the Developer has agreed to certain restrictions on the release of a portion of the District Bond proceeds to tie their release to additional leasing performance; and WHEREAS, in addition, the Parties have determined that certain other clarifications to the language of the Agreement will be mutually beneficial. NOW THEREFORE, in consideration of the mutual covenants and promises of the Parties contained in this Agreement, and other valuable consideration, the receipt and adequacy of which are acknowledged, the Parties agree to the terms and conditions in this Agreement. AGREEMENT 1. DEFINED TERMS AND RECITALS INCORPORATED. All terms used in this Amendment and defined in the Agreement shall have the meanings ascribed to them in the Agreement, except as otherwise expressly provided herein. All recitals set forth in the Agreement and in this Amendment, above, are incorporated into the Agreement as amended by this Amendment as though fully set forth in the body hereof. EXHIBIT A Packet Pg. 41 Attachment1: Exhibit A (URA-Foothills Mall Agreement Revision URA RESO) 2 2. DEFINITION ADDED. Section 1 of the Agreement is amendment to add a definition of the term “Tenant New to Fort Collins”, as follows: “Tenant New to Fort Collins” means any tenant other than a tenant that is relocating to the Project an existing business that was operating under a City of Fort Collins sales tax license as of the date of the Agreement or this Amendment. 3. AMENDMENT TO SECTION 3.1. Section 3.1 of the Agreement is hereby amended to read as follows: 3.1 Conditions Precedent to Issuance of District Bonds. The following conditions shall be satisfied on or prior to the issuance of the District Bonds: (a) The Developer and the District shall prepare the Financing Plan and the City Manager and the Executive Director of the Authority shall have approved the Financing Plan. The Financing Plan shall also be in form and substance satisfactory to the District’s bond counsel and the underwriter of the District Bonds. The Financing Plan shall demonstrate that there is expected to be sufficient Pledged Revenues derived from the construction of the Project to pay the debt service requirements on the District Bonds when due. (b) The Developer shall provide to the City Manager the following evidence satisfactory to the City Manager that the Developer has obtained all equity and private financing necessary to construct the non-residential components of the Project: (1) Developer shall certify that it has expended no less than $57 million on the Project, representing the Developer’s equity commitment as of the closing of the District Bonds; and (2) Developer shall demonstrate that it has a closed construction loan with a commitment from the construction lender to fund an amount not less than the difference between the construction costs of the Project and the total of the net bond proceeds and the Developer’s equity commitment described in Section 3.1(b)(1), which construction loan shall provide recourse for one hundred percent (100%) of the loan amount against an entity (or entities) that own(s) substantially all of and controls(s) the Developer. Such recourse may be subject to decreases over time as certain financial tests and leasing tests are achieved. The City’s Financial Officer and City Attorney (or their delegates) shall be entitled to review the loan agreement and related documents, including, but not limited to, any promissory note and all related guarantees and deeds of trust, to verify compliance with this requirement. (c) The Developer shall have obtained executed lease agreements, excluding the existing department store located on Larimer County Parcel Number 9725391002, Packet Pg. 42 Attachment1: Exhibit A (URA-Foothills Mall Agreement Revision URA RESO) 3 totaling at least 155,000 square footage of the retail area of the Project with tenants that, in the aggregate, have an average sales per square foot of at least $375 based on average national sales performance, and, except as hereinafter provided, of which at least 90,000 square feet shall be leased to Tenants New to Fort Collins. The Developer shall certify to the City upon the City’s request that the conditions of this Subsection (c), excluding verification of the sales per square foot requirement, have been met in full. (d) The Developer shall have imposed the Add-On PIF in accordance with Section 4.7 hereof. (e) The Developer shall have obtained the Development Approvals for the Project, as described in this Agreement and in Exhibit C. (f) The City and the Authority shall receive an opinion of the District’s bond counsel that the District Bonds have been validly issued and opining as to the tax-exempt status of the bonds, which opinion shall be addressed to the City and the Authority, or the City and the Authority shall receive a reliance letter from the District’s bond counsel. (g) No Event of Default hereunder shall have occurred and be continuing hereunder, unless such Event of Default has been cured, remedied or waived, or a remedy has been agreed upon by the Parties which will become effective with the passage of time. 4. AMENDMENT TO SECTION 3.2. Section 3.2 is hereby amended to read as follows: 3.2 Provisions to be Included in District Bond Documents. The District Bond Documents shall contain the following provisions: (a) The District Bonds shall be payable from the Pledged Revenues in the following order of priority: (i) the District Debt Service Mill Levy Revenues; (ii) the Pledged District Specific Ownership Taxes; (iii) the Pledged Property Tax Increment Revenues; (iv) the Add-On PIF Revenues; and (iii) the Pledged Sales Tax Increment Revenues. (b) The District Bond proceeds may only be made available to the District in tranches, upon the achievement by Developer of threshold requirements for executed leases for tenants as set forth in the table below. The parties acknowledge that, as provided in Section 3.1(c) above, attainment of the threshold for the first such tranche is a condition precedent of issuance of the District Bonds. As to tranches 1, 2 and 3 only, the Packet Pg. 43 Attachment1: Exhibit A (URA-Foothills Mall Agreement Revision URA RESO) 4 tenants comprising the required threshold shall have an average sales per square foot of at least $375 in the aggregate based on average national sales. A portion of each tranche shall be allocated to the Underpass and Foothills Activity Center improvements as set forth in the table below. The balance of the available proceeds within each tranche may be spent without restriction, except as otherwise set forth in this Agreement. (c) If, on the third anniversary date of the issuance of the District Bonds, any portion of the District Bond proceeds that has not been disbursed as a result of failure to meet one or more leasing thresholds described in Section 3.2(b), then the remaining undisbursed proceeds shall be used to carry out the mandatory extraordinary redemption of a corresponding portion of the District Bonds. (d) After the debt service requirements on the District Bonds have been paid or provided for in each Fiscal Year, and after all payments have been made to replenish the reserve fund for the District Bonds and to make any payments into any required rebate funds for the District Bonds, any excess Pledged Revenues shall be applied by the District Bond Trustee as follows: 5. AMENDMENT TO SECTION 4.1. Section 4.1 is hereby amended to read as follows: 4.1 Construction of Project. As set forth in Section 2.1 hereof, the Developer and/or the District shall construct the Project. The Project shall be constructed substantially in accordance with the Development Approvals and Exhibit C attached hereto. Additionally, as construction proceeds on the Project, Developer shall comply with the following requirements. (a) Developer shall provide a monthly written status report to the City regarding the status of construction of the Project with respect to the overall schedule. The City acknowledges that Developer has identified or may identify certain information Tranche Cumulative Total Square Feet of Executed Lease Agreements Total Amount of Bond Proceeds Disbursed in Tranche Cumulative Total Amount of Bond Proceeds Disbursed Minimum Bond Proceeds for Underpass and Foothills Activity Center (FAC) 1 155,000 $23M $23M $3M (Underpass) 2 205,000 $10M $33M $1M (FAC) 3 255,000 $10M $43M $2M (FAC) 4 310,000 $10M $53M $2M (FAC) Packet Pg. 44 Attachment1: Exhibit A (URA-Foothills Mall Agreement Revision URA RESO) 5 contained in such reports as confidential, proprietary business information. The City agrees that it will maintain the confidentiality of such information except as required by applicable law. If the City is requested to disclose information identified by Developer as confidential and if the City believes it is legally required to make disclosure of such information, the City will notify Developer at least two business days prior to making such disclosure, so as to permit Developer to propose appropriate redactions or seek a judicial declaration preventing disclosure. The Developer shall reimburse the City for any attorneys’ fees or costs incurred by the City or that the City is ordered to pay in connection with such proceedings. (b) Developer shall certify to the City prior to the release of each tranche of District Bond proceeds as set forth in Section 3.2(b) that the total square footage of leases to Tenants New to Fort Collins meets the minimum threshold for such tranche as set forth in the table below: Tranche Total Square Feet of Executed Lease Agreements Total Leasing to Tenants New to Fort Collins 1 155,000 90,000 2 205,000 110,000 3 255,000 130,000 4 310,000 150,000 (c) Developer shall also provide monthly reports to the City which include the following information: (i) the percentage of the total square footage to be leased for which leases have been executed; (ii) the percentage of the total square footage to be leased for which letters of intent have been executed; and (iii) the percentage of the total square footage to be leased that is under negotiation. The City acknowledges that Developer has identified or may identify certain information provided under this subsection as confidential, proprietary business information. The City agrees that it will maintain the confidentiality of such information to the same extent and under the same terms and conditions as set forth in Section 4.1(a), above. 6. AMENDMENT TO SECTION 4.3. Section 4.3 is hereby amended to read as follows: 4.3 Construction of Residential Component of Project; Affordable Housing. The Developer shall Complete Construction of the residential components of the Project, subject to Force Majeure, as follows: Packet Pg. 45 Attachment1: Exhibit A (URA-Foothills Mall Agreement Revision URA RESO) 6 (a) on or prior to December 31, 2016, the Developer shall Complete Construction of the first phase of the residential component of the Project consisting of a minimum of 200 units; (b) on or prior to December 31, 2018, the Developer shall Complete Construction of the second phase of the residential component of the Project consisting of at least an additional 246 units. Failure to Complete Construction of the residential components of the Project in accordance with this Section 4.3 shall not be deemed to be an Event of Default under this Agreement, provided, however, that if Construction of the residential components of the Project is not Completed as set forth above, then beginning with the 2020 Fiscal Year, the Developer shall be obligated to pay in such Fiscal Year and each Fiscal Year thereafter, regardless of whether the Developer is the owner of the Property on which the residential component of the Project is to be constructed, an amount equal to 50% of the difference between the Pledged Revenues generated from the residential component of the Project and the Estimated Revenues from the Residential Property, as follows: (i) such payment shall be made to the City to the extent that any Pledged Sales Tax Increment Revenues are applied in such fiscal year to the payment of the debt service requirements on the District Bonds; and (ii) to the extent that such payment is not due and owing to the City in any fiscal year, the balance of any such amount to be paid by the Developer in such fiscal year shall be applied toward principal on the District Bonds. Said payment shall be made in each fiscal year until either: (1) the pledge of any Authority Pledged Revenues has ceased; or (2) property taxes are due from the residential component of the Project for 446 units that have been assessed as 100% complete. The Project shall pay any affordable housing fees that may be enacted by the City Council on or before December 1, 2014, as if such fees had been in place and applicable to the Project. Any affordable housing impact fee that may be adopted as part of such requirements shall be paid by the Developer when due for the Project, except that for any portion of the Project developed prior to the imposition of the fee, such fee shall be paid no later than sixty days after adoption. 7. AMENDMENT TO SECTION 4.8. Section 4.8 of the Agreement is hereby amended to read as follows: 4.8 Access to Property. Developer will make arrangements for representatives of the City, including elected officials and staff, and the public, to participate in regular tours of the Property during construction, which tours shall be conducted no less frequently than once per month. Additionally, Developer will permit representatives of the City and the Authority access to the Property and the Project at reasonable times during regular business hours and with prior notice as necessary for the purpose of carrying out or determining compliance with the Agreement, the Urban Renewal Plan, or any City code or ordinance, including, without limitation, inspection of any work being conducted. No compensation will be payable for such access. The City and the Authority, as applicable, agree to restore the Property and any component of the Project to its condition prior to any tests or inspections made by the City and further agree that they shall be responsible for any damage that results from the City or the Authority, as applicable, accessing the Property pursuant to their respective rights under this Packet Pg. 46 Attachment1: Exhibit A (URA-Foothills Mall Agreement Revision URA RESO) 7 Agreement, to the extent permitted by law and, in the case of the City, subject to annual appropriation of funds by the City Council, in its sole discretion. 8. VALIDITY OF REMAINING PROVISIONS. All provisions of the Redevelopment Agreement that are not expressly amended herein shall remain in full force and effect and continue to bind the parties thereto. IN WITNESS WHEREOF, this Amendment is executed by the Parties as of April __, 2014. FORT COLLINS URBAN RENEWAL AUTHORITY _____________________________________ Gerry Horak, Vice Chairperson ATTEST: _____________________________ Darin Atteberry, Executive Director Notice Address: Fort Collins Urban Renewal Authority 300 LaPorte Avenue P.O. Box 580 Fort Collins, CO 80522 Attention: Darin Atteberry, Executive Director Email: datteberry@fcgov.com Packet Pg. 47 Attachment1: Exhibit A (URA-Foothills Mall Agreement Revision URA RESO) 8 CITY OF FORT COLLINS, COLORADO By: Gerry Horak, Mayor Pro Tem (SEAL) ATTEST: _______________________ Wanda Nelson, City Clerk APPROVED AS TO FORM _______________________ Carrie Mineart Daggett, Deputy City Attorney Notice Address: City of Fort Collins 300 LaPorte Avenue P.O. Box 580 Fort Collins, Colorado 80522 Attention: Carrie Mineart Daggett, Esq., Deputy City Attorney Email: cdaggett@fcgov.com Packet Pg. 48 Attachment1: Exhibit A (URA-Foothills Mall Agreement Revision URA RESO) 9 FOOTHILLS METROPOLITAN DISTRICT _________________________________ ATTEST: ________________________, President _____________________________ Secretary Notice Address: c/o White, Bear and Ankele, P.C. The Streets at Southglenn 2154 E. Commons Avenue, Suite 2000 Centennial, CO 80122 Attention: Kristen Bear Email: kbear@wbapc.com Packet Pg. 49 Attachment1: Exhibit A (URA-Foothills Mall Agreement Revision URA RESO) 10 WALTON FOOTHILLS HOLDINGS VI, L.L.C., a Delaware limited liability company By: Foothills Alberta Management, LLC, a Colorado limited liability company Its: Authorized Agent By: ____________________________ Donald G. Provost Its: Manager Notice Address: Walton Foothills Holdings VI, L.L.C. 5750 DTC Pkwy, Suite 210 Greenwood Village, CO 80111 Attention: Donald G. Provost Email: dgp@albdev.com With a copy to: Brownstein Hyatt Farber Schreck, LLP 410 Seventeenth Street, Suite 2200 Denver, CO 80202 Attention: Carolynne C. White, Esq. Email: cwhite@bhfs.com Packet Pg. 50 Attachment1: Exhibit A (URA-Foothills Mall Agreement Revision URA RESO) City of Fort Collins Page 1 u r b a n r e n e w a l a u t h o r i t y Karen Weitkunat, Chairperson Council Information Center (CIC) Gerry Horak, Vice-Chairperson City Hall West Bob Overbeck 300 LaPorte Avenue Lisa Poppaw Fort Collins, Colorado Gino Campana Wade Troxell Ross Cunniff Cablecast on City Cable Channel 14 on the Comcast cable system Steve Roy Darin Atteberry Wanda Nelson City Attorney Executive Director Secretary The City of Fort Collins will make reasonable accommodations for access to City services, programs, and activities and will make special communication arrangements for persons with disabilities. Please call 221-6515 (TDD 224- 6001) for assistance. URBAN RENEWAL AUTHORITY BOARD WORK SESSION April 15, 2014 (after the Urban Renewal Authority Regular Meeting) CALL TO ORDER. 1. Urban Renewal Authority Financial Management Policy - Tax Increment Financing (TIF) Parameters. (staff: Tom Leeson; 10 minute staff presentation; 30 minute discussion) The purpose of this item is to discuss a series of new financial parameters to be used in developing the TIF commitments made to individual projects. The Fort Collins Urban Renewal Authority (URA) has been engaged in a process of continuous improvement since the beginning of 2012. Recent improvements include: Reorganization by moving the management of the URA from the Finance Department to Economic Health allowing for an independent review by Finance; Changes to the method for estimating Tax Increment generated by a project, consistent with the proven track record of the Downtown Development Authority’s approach; Increased consultation with outside legal counsel relative to specific URA financing, operations, and formation issues; and Documentation and tracking of the Redevelopment Agreement negotiation, adoption, and execution process. The item presented to the URA Board continues the process of improvement by presenting a series of parameters to be used in developing the TIF commitments made to individual projects by URA staff. City of Fort Collins Page 2 2. New Approach for URA Process. (staff; Tom Leeson; 10 minute staff presentation; 30 minute discussion) The purpose of this item is to discuss a new URA process when forming urban renewal plan areas that goes well beyond the State requirements. The URA should engage in a new process when forming urban renewal plan areas that goes well beyond the state requirements. The process for forming new urban renewal areas should be more strategic with regards to the public improvements, land uses, design standards, as well as public and private amenities, and include a detailed implementation strategy that identifies timing of improvements, cost estimates, responsible parties and realistic approach to various financing mechanisms. Furthermore, it is recommended this new urban renewal planning process be applied to a new and reconfigured Midtown Urban Renewal Plan. The Midtown Urban Renewal Plan should be amended to include only those areas that are currently within established tax increment districts (Prospect South and Foothills Districts). The URA should then engage in a community process to identify a new and more strategic area to be targeted for infill and redevelopment and develop a new urban renewal plan for that area. OTHER BUSINESS. ADJOURNMENT. DATE: STAFF: April 15, 2014 Tom Leeson, Redevelopment Program Manager WORK SESSION ITEM Urban Renewal Authority Board SUBJECT FOR DISCUSSION Urban Renewal Authority Financial Management Policy - Tax Increment Financing (TIF) Parameters. EXECUTIVE SUMMARY The purpose of this item is to discuss a series of new financial parameters to be used in developing the TIF commitments made to individual projects. The Fort Collins Urban Renewal Authority (URA) has been engaged in a process of continuous improvement since the beginning of 2012. Recent improvements include: Reorganization by moving the management of the URA from the Finance Department to Economic Health allowing for an independent review by Finance; Changes to the method for estimating Tax Increment generated by a project, consistent with the proven track record of the Downtown Development Authority’s approach; Increased consultation with outside legal counsel relative to specific URA financing, operations, and formation issues; and Documentation and tracking of the Redevelopment Agreement negotiation, adoption, and execution process. The item presented to the URA Board continues the process of improvement by presenting a series of parameters to be used in developing the TIF commitments made to individual projects by URA staff. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED 1. What questions does the URA Board have about the proposed TIF commitment parameters? 2. Does the URA Board feel the financial parameters are ready to consider for adoption? BACKGROUND / DISCUSSION The attached proposed URA Financial Management Policy (Financial Policy)(Attachment 1) addresses a concern consistently voiced by URA Board members in the past two years. The concern relates to over- commitment of TIF dollars to individual redevelopment projects. This concerns stems from recent experience where initial estimates of the TIF generated by a project exceeded the initial actual TIF generated by the project. One measure taken to address this concern has been adopting a method of estimating the TIF anticipated from a project by using the approach employed by the DDA. This approach has a long proven track record. In addition, estimates of TIF over the course of an Urban Renewal Plan Area (Plan Area) life have been adjusted to assume no growth (0% appreciation) as an additional layer of conservatism. The proposed Financial Policy provides additional insulation to address this concern. The Financial Policy is intended to provide a set of operating norms for future TIF commitments to be used by URA staff. The financing parameters presented represent a range of preferred methods. The decision to use one method over another or to blend methods will be contingent upon a project’s need for gap financing, the size of the particular project, the type of improvements supported by the TIF and/or the public benefit provided by the project. Packet Pg. 3 April 15, 2014 Page 2 The attached proposed Financial Policy (Attachment 1) provides parameters related to the two primary approaches to providing TIF commitments: (a) lump sum payments to the project (historically the prevalent approach) and (b) payments to the project over time. In addition, the application or use of TIF is primarily for two of the three previously outlined URA assistance purposes: (a) Create - When existing conditions on a site make private market rate redevelopment impractical (i.e., environmental contamination or insufficient infrastructure) so providing TIF assistance removes financial barriers and helps to create a project that would not otherwise happen, and (b) Enhance - When conditions on a site are such that the likely market rate redevelopment outcome is not consistent with goals for Targeted Redevelopment and Infill Areas. In these cases, providing TIF assistance changes the scope of the project so that it conforms, or exceeds identified objectives in City Plan. Specific details of the proposed financing parameters are provided in the attached Financial Policy (Attachment 1). It should be noted the URA Finance Committee reviewed the financial parameters at its meeting on November 21, 2013. Generally the Committee was supportive of the parameters. Council Member Cunnifff expressed concern that the maximum percentages may still be too high, considering future projects and the possibility of slippage. Mayor Weitkunat emphasized the recommended percentages are maximums not targets and that all but two projects have fallen well below 75% (Attachment 2). ATTACHMENTS 1. TIF FInancing Policy (PDF) 2. URA Finance Committee minutes, November 21, 2013 (PDF) 3. Powerpoint Presentation (PDF) Packet Pg. 4 URA Financial Management Policy 1.1 1.1 Tax Increment Financing Issue Date: TBD Version: 1 Issued by: Director Economic Health 1.1.1.2 Financial Policy 1.1 – Policy Name 1.1.1.2 1 Objective: The following parameters are intended to provide a set of operating norms for financing URA projects. The financing parameters represent a range of preferred methods. The decision to utilize a particular financing method is contingent upon a project’s need for gap financing, the size of a particular deal, the type of improvements supported by public financing and/or the public benefit provided. Applicability: This policy applies to Fort Collins Urban Renewal Authority. Authorized by: Packet Pg. 5 Attachment1.1: TIF FInancing Policy (URA-Financial Management Policy) Tax Increment Financing Parameters 1.1.1.1 Financial Policy 1.1 – Policy Name 1.1.1.1 2 1.1 Guiding Principles A. Retaining a percentage of the total tax increment collected guards against the risk associated with rising interest rates, a diminution of assessed value, and other market risks. B. During volatile and/or rising rate environments, consideration will be given to reducing the amount of TIF committed by the URA as a hedge against dramatic rate increases that increase the cost of financing to the URA 1.2 TIF Parameters URA Assistance Purpose: Create URA Assistance Purpose: Enhance Element Lump Sum Payment Pay Over Time Lump Sum Payment Pay Over Time Max % TIF Commitment Available to Support Project 75%* 90%** 75%* 75% TIF Payment Calculation Fixed $ Commitment (a) % of Actual First Year Annual Tax Increment collected (b) Fixed Annual $ Commitment Fixed $ Commitment (a) % of Actual First Year Annual Tax Increment collected (b) Fix Annual $ Commitment URA Cost of Capital Borrowing Costs: -City Interagency Loan Policy -Bank Loan Underwriting Req. -Other: Section 108 standards N/A Borrowing Costs: -City Interagency Loan Policy -Bank Loan Underwriting Req. -Other: Section 108 standards N/A Tax Increment Financing Parameters 1.1.1.1 Financial Policy 1.1 – Policy Name 1.1.1.1 3 1.3 General Procedures: A. The Larimer County Estimate of Value provided to the developer/property owner shall be utilized for estimating future tax increment collections associated with a project. There shall be no annual appreciation applied to the estimate. B. Growth Estimate in cash flow analysis will be held at 0% C. Cash flows shall be based on absolute dollars and NPV. The discount rate used shall equal the URA cost of capital. D. The term of a City loan to the URA shall be based on the estimated TIF stream. The term shall be minimized to the greatest extent possible given the estimated cash flow. E. The minimum time to process the request for payment from the development will be 90 calendar days. F. In the pay over-time as a Fixed Annual $ Commitment as described in (b) above: a. In the first year if actual TIF comes in lower than the Estimate of Value, the actual TIF reimbursed will be prorated based on the actual TIF received. b. In the first year, if actual TIF comes in higher than the Estimate of Value, the TIF reimbursed will be based on the original Estimate of Value calculation. c. The actual TIF paid does not grow with inflation. Once established in (b) above, it stays constant. Once established by (a), it can grow to equal (b) but not exceed (b). 1.4 Definitions A. Create: When existing conditions on a site make private market rate redevelopment impractical (i.e., environmental contamination or insufficient infrastructure) so providing TIF assistance removes financial barriers and helps to create a project that would not otherwise happen. B. Enhance: When conditions on a site are such that the likely market rate redevelopment outcome is not consistent with goals for Targeted Redevelopment and Infill Areas. In these cases, providing TIF assistance changes the scope of a project so that it conforms, or exceeds identified objectives in City Plan. Packet Pg. 7 Attachment1.1: TIF FInancing Policy (URA-Financial Management Policy) Tax Increment Financing Parameters 1.1.1.1 Financial Policy 1.1 – Policy Name 1.1.1.1 4 Getting Help Related Policies/References Packet Pg. 8 Attachment1.1: TIF FInancing Policy (URA-Financial Management Policy) Finance Administration 215 N. Mason 2nd Floor PO Box 580 Fort Collins, CO 80522 970.221.6788 970.221.6782 - fax fcgov.com URA Finance Committee Meeting Minutes 11/21/13 10:00 to 11:30 a.m. CIC Room Council Attendees: Mayor Karen Weitkunat, Bob Overbeck, Ross Cunniff Staff: Darin Atteberry, Mike Beckstead, Josh Birks, Karl Gannon, Bruce Hendee, Mark Jackson, Diane Jones, Tom Leeson, Ken Mannon, Lawrence Pollack, Kurt Ravenschlag, Jessica Ping- Small, Peggy Streeter, Steve Roy, John Voss, Katie Wiggett, Timothy Wilder Others: Approval of the Minutes of September 16, 2013 Mayor Karen Weitkunat moved to approve the minutes for the September 16, 2013 meeting. Minutes were approved unanimously. URA Financial Parameters Josh Birks said that the Fort Collins Urban Renewal Authority (URA) has been engaged in a process of continuous improvement since the beginning of 2012. Recent improvements include: Reorganization moving the management of the URA out from under the Finance Department allowing for an independent review by Finance; Changes to the method for estimating Tax Increment generated by a project, consistent with the proven track record of the Downtown Development Authority’s approach; Increased consultation with outside legal counsel relative to specific URA financing, operations, and formation issues; and Documentation of the Redevelopment Agreement negotiation, adoption, and execution process. Josh added that, while historically the City has been the URA’s primary source for loans, the URA is looking at other funding options (i.e. the federal government, banks, etc.). This is one way we are broadening our horizons. Josh noted that the presented policy continues the process of improvement by presenting a series of parameters for developing the TIF commitments made to individual projects by URA staff. These parameters are defined by the URA’s purpose to create and to enhance. Packet Pg. 9 Attachment1.2: URA Finance Committee minutes, November 21, 2013 (URA-Financial Management Policy) 2 The Financial Policy is intended to provide a set of operating norms for future TIF commitments to be used by URA staff. The financing parameters presented represent a range of preferred methods. The decision to use one method over another or to blend methods will be contingent upon a project’s need for gap financing, the size of the particular project, the type of improvements supported by the TIF and/or the public benefit provided by the project. The proposed Financial Policy provides parameters related to the two primary approaches to providing TIF commitments: (a) lump sum payments (historically the prevalent approach) and (b) pay over time. Ross Cunniff asked how Staff settled on the maximum percentages for TIF. Mike replied that the numbers were the result of balancing risk with achieving results. Staff determined that at 75%, the URA could achieve its goals without too much risk. It is a conservative maximum limit. Ross asked how this maximum percentage compares with the DDA’s. Josh answered that the primary distinction between the DDA and the URA is that the DDA has a dual purpose, adding to blight renewal the maintenance of the downtown area whereas the URA’s sole purpose is blight renewal. Because of this distinction, the DDA retains more TIF to cover the cost of maintenance. The problem the URA faces is trying to keep the TIF low while also maximizing public improvements. For example, the TIF on the mall project would be lower if we abandoned such improvements as the YAC and the underpass. Ross asked how any remaining TIF funds are used. Mike replied that any excess TIF stayed in the URA to be used to improve the same area for which it was collected. Steve Roy will look into the legal parameters for using such funds. Mike noted that the DDA uses a line of credit mechanism that satisfies the debt obligation attached to excess TIF revenue; the URA could use a similar mechanism. Mike noted that the conservative parameters of this policy may limit the kind of projects the URA can take on in the future. Josh Birks added that this policy creates a forced dialogue between Staff and Council if the URA wants to go outside these parameters. Only Council can decide to make an exception. Ross expressed concern that the maximum percentages may still be too high, considering future projects and the possibility of slippage. Mayor Weitkunat said that we should emphasize that those percentages are maximums not targets and that all but two projects have fallen well below 75%. Next Steps The URA TIF Policy will be discussed in more detail at a future work session. Packet Pg. 10 Attachment1.2: URA Finance Committee minutes, November 21, 2013 (URA-Financial Management Policy) 1 URA Financial Management Policy Tax Increment Financing Parameters URA Board Meeting April 15, 2014 Packet Pg. 11 Attachment1.3: Powerpoint Presentation (URA-Financial Management Policy) 2 Direction Sought • Does the URA Board have questions about the proposed TIF commitment parameters? • Does the URA Board fee the financial parameters are ready for adoption? Packet Pg. 12 Attachment1.3: Powerpoint Presentation (URA-Financial Management Policy) 3 Recent Improvements • Reorganization allowing for an independent review by Finance • Changes to the method for estimating Tax Increment generated by a project • Increased consultation with outside legal counsel • Documentation of the Redevelopment Agreement negotiation, adoption, and execution process Packet Pg. 13 Attachment1.3: Powerpoint Presentation (URA-Financial Management Policy) 4 URA Assistance Purpose: Create URA Assistance Purpose: Enhance Element Lump Sum Payment Pay Over Time Lump Sum Payment Pay Over Time Max % TIF Commitment 75% (Including borrowing costs) 90% (75% in Prospect South) 75%* 75% TIF Payment Calculation Fixed $ Commitment a) % of Actual Annual Tax Increment collected b) Fixed Annual $ Commitment Fixed $ Commitment a) % of Actual Annual Tax Increment collected b) Fix Annual $ Commitment URA Cost of Capital Borrowing Costs: -City Interagency Loan Policy -Bank Loan Underwriting Req. -Other: Section 108 standards N/A Borrowing Costs: -City Interagency Loan Policy -Bank Loan Underwriting Req. -Other: Section 108 standards N/A Developer Cost Capital N/A -Negotiated -Limited by the Max % TIF Commitment Available N/A -Negotiated -Limited by the Max % TIF Commitment Available % TIF Contribution relative to Total Project Cost 5 Direction Sought • Does the URA Finance Committee have questions about the proposed TIF commitment parameters? • Does the URA Board fee the financial parameters are ready for adoption? Packet Pg. 15 Attachment1.3: Powerpoint Presentation (URA-Financial Management Policy) DATE: STAFF: April 15, 2014 Tom Leeson, Redevelopment Program Manager WORK SESSION ITEM Urban Renewal Authority Board SUBJECT FOR DISCUSSION New Approach for URA Process. EXECUTIVE SUMMARY The purpose of this item is to discuss a new URA process when forming urban renewal plan areas that goes well beyond the State requirements. The URA should engage in a new process when forming urban renewal plan areas that goes well beyond the state requirements. The process for forming new urban renewal areas should be more strategic with regards to the public improvements, land uses, design standards, as well as public and private amenities, and include a detailed implementation strategy that identifies timing of improvements, cost estimates, responsible parties and realistic approach to various financing mechanisms. Furthermore, it is recommended this new urban renewal planning process be applied to a new and reconfigured Midtown Urban Renewal Plan. The Midtown Urban Renewal Plan should be amended to include only those areas that are currently within established tax increment districts (Prospect South and Foothills Districts). The URA should then engage in a community process to identify a new and more strategic area to be targeted for infill and redevelopment and develop a new urban renewal plan for that area. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED 1. Does the URA Board support with the new approach regarding the methodology for establishing new urban renewal plan areas? 2. Does the Board support the URA staff initiating the process of amending the Midtown Urban Renewal Plan area as discussed? BACKGROUND / DISCUSSION New Plan Area Formation Process The Fort Collins Urban Renewal has been focused on remediating blight by partnering with the private sector at the project level. While the projects adhere to the intended development patterns delineated in City Plan and planning documents, there is no specific redevelopment plan for the Urban Areas. In an effort to respond more directly to the City Plan objectives, the URA should continue to focus on remediating blight while also emphasizing the creation great places. Place making involves looking at, listening to, and asking questions of the people who live, work and play in a particular space, to discover needs and aspirations. This information is then used to create a common vision for that place. The vision can evolve quickly into an implementation strategy, beginning with small-scale, doable improvements that can immediately bring benefits to public spaces and the people who use them. To date, the Fort Collins URA has created two urban renewal areas (North College and Midtown), both of which cover relatively large areas (See Attachment 1 for map). The two urban renewal areas were created in conformance with the Colorado Urban Renewal law and were accompanied by the required urban renewal blight studies and plans. The North College Urban Renewal Plan and the Midtown Urban Renewal Plan both follow the statutory requirements; however, neither Plan is specific about the desired type of redevelopment and infrastructure improvements to be financed with Tax Increment Financing (TIF). Packet Pg. 16 April 15, 2014 Page 2 The Fort Collins URA has traditionally considered individual project proposals and assessed TIF financing for each particular project. While there have been successful redevelopment projects, the current approach has resulted in relatively sporadic redevelopment activity. Additionally, since the urban renewal areas are large, it has been difficult to develop a cohesive redevelopment strategy that focuses on the specific improvements needed to remediate all of the identified blight. Additionally, the approach results in trying to analyze each proposed project independently and how it addresses the public benefit in terms of infrastructure improvements and blight remediation. In many communities, the urban renewal plan is used to identify the blight conditions per state statute and provide a specific plan for remediating the blight and creating great places. Plan elements typically include identifying specific infrastructure improvements, desired land uses, preferred urban design elements, necessary pedestrian connections, gateway features, and open space opportunities, to name a few. The purpose of a more specific plan is to identify specific projects, design elements, and costs that might be undertaken to redevelop and revitalize an area. It allows the broader community, underlying property owners, and stakeholders to be more focused and deliberate in identifying the types of projects and improvements needed in a particular urban renewal area, and results in greater buy-in of the identified objectives as a result of the increased level of collaboration. For these reasons, it is recommended the URA engage in a new process when forming new urban renewal plan areas that goes well beyond the state requirements and focuses on achieving a strong sense of place. The process for forming new urban renewal areas should be collaborative and include property owners, taxing districts, stakeholders, and the members of the broader community. Additionally, the urban renewal plans should focus on smaller areas and be more strategic with regards to the public improvements, land uses, design standards, as well as public and private amenities. A more specific urban renewal plan should also include a detailed implementation strategy that identifies timing of improvements, cost estimates, responsible parties and realistic approach to various financing mechanisms. The plan should also identify the public improvements, the private improvements, and those improvements that are appropriate for a public/private partnership (Attachment 2). Midtown Urban Renewal Plan Area Furthermore, in an effort to be more focused in terms of implementation for the Midtown Plan, it is recommended this new urban renewal planning process be applied to a new and reconfigured Midtown Urban Renewal Plan Area. This is not to suggest the Midtown Plan recently adopted by City Council that identifies urban design elements be amended, but rather the urban renewal plan that identified the blighted conditions along the College Avenue corridor and was the statutory basis for creating the tax increment financing districts. The Midtown Urban Renewal Plan, which extends along College Avenue corridor from Prospect Road to south of Harmony Road is too large an area to effectively and strategically plan for improvements. Therefore, it is recommended the Midtown Urban Renewal Plan be amended to include only those areas that are currently within established tax increment districts (Prospect South and Foothills Districts). The URA should then engage in a community process to identify a new and more strategic area to be targeted for infill and redevelopment and develop a new urban renewal plan following the process described above. ATTACHMENTS 1. URA Project Map (PDF) 2. Comparison matrix (PDF) 3. Powerpoint Presentation (PDF) Packet Pg. 17 ! ! ! ! ! ! ! ! ! !11 9 8 7 5 4 3 2 1 10 6 COLLEGE DRAKE WILLOX VINE PROSPECT HARMONY MASON REMINGTON HOWES HORSETOOTH LAUREL MOUNTAIN RIVERSIDE BOARDWALK LAPORTE LINCOLN JOHN F KENNEDY LANDINGS JEFFERSON MASON STOVER SWALLOW LAKE PITKIN STUART LAUREL CONIFER CENTRE REDWOOD CHERRY LINDEN ELIZABETH COLUMBIA LOOMIS HICKORY MEADOWLARK BOARDWALK STANFORD MANHATTAN HINSDALE Urban Renewal Plan Area Adoption Process Comparison Matrix Current UR Plan Approval Process New UR Plan Approval Process Process to determine UR Plan area Informed by policies and goals within City Plan Informed by policies and goals within City Plan Collaborative process with steering committee and stakeholders Evaluate multiple areas for greatest potential for redevelopment Evaluation of potential redevelopment opportunities with proximity to transit Determination of Blight and public process Notice by mail of study City Council Resolution to Proceed Public informed well in advance of study Property owners part of process identifying blight conditions Notice by mail of study City Council Resolution to Proceed Draft & Adopt Urban Renewal Plan Informed by Colorado Urban Renewal Law County Impact Report provided to County within 30 days of plan adoption Plan drafted by City staff/ minimal public outreach Notice to taxing entities and affected interests P&Z Recommendation City Council Resolution to Adopt Follows more traditional sub-area planning process, while also meeting Statutory requirements Establish working group/steering committee that includes stakeholders (including taxing districts) Draft goals and objectives for area Draft alternative scenarios (include alternatives analysis) Public hearings/workshops Notice to taxing entities and affected interests P&Z Recommendation County Impact Report provided to County within 30 days of plan adoption City Council Resolution to Adopt What is included in UR Plan? Legal Description of area and TIF District Statutory requirements: o Blight conditions o Plan objectives o UR Activities o Project Financing (TIF) Legal Description of area and TIF District Statutory requirements Alternative and preferred land use program Potential zoning amendments and other regulatory tools needed for implementation (design standards) Identified public and private improvements o Parking structures, pedestrian improvements, gathering spaces, etc. o PPPs Build out scenarios Packet Pg. 19 Attachment2.2: Comparison matrix (URA-New Approach for URA Process) Urban Renewal Plan Area Adoption Process Comparison Matrix Market/financial analysis Implementation strategy o Project financing o Timing o Responsible parties Packet Pg. 20 Attachment2.2: Comparison matrix (URA-New Approach for URA Process) 1 New Approach for URA Process URA Board Meeting April 15, 2014 Packet Pg. 21 Attachment2.3: Powerpoint Presentation (URA-New Approach for URA Process) 2 Direction Sought • Does the URA Board agree with the new approach regarding the methodology for establishing new urban renewal plan areas? • Would URA Board like the URA staff to begin the process of amending the Midtown Urban Renewal Plan area as discussed? Packet Pg. 22 Attachment2.3: Powerpoint Presentation (URA-New Approach for URA Process) 3 Focus on Place Making • URA has focused on individual projects • Focus on remediating blight while emphasizing the creation great places • Place making involves looking at, listening to, and asking questions of the people who live, work and play in a particular space, to discover needs and aspirations. Packet Pg. 23 Attachment2.3: Powerpoint Presentation (URA-New Approach for URA Process) 4 North College Avenue URA Packet Pg. 24 Attachment2.3: Powerpoint Presentation (URA-New Approach for URA Process) 5 Midtown URA Urban Renewal Areas: • Large areas • Not specific about desired development type • Not specific about improvements • No implementation plan • Wait-and-See Approach Packet Pg. 25 Attachment2.3: Powerpoint Presentation (URA-New Approach for URA Process) 6 URA Plan Process In most communities the urban renewal plan is used: • Identify the blight conditions • Provide a specific plan for remediating the blight • Focused on creating great places Plan Elements Include: • Identifying specific infrastructure improvements • Desired land uses • Urban design elements • Necessary pedestrian connections • Gateway features Packet Pg. 26 Attachment2.3: Powerpoint Presentation (URA-New Approach for URA Process) 7 URA Plan Process URA Plan Process should: • Identify specific projects, design elements, and costs to redevelop and revitalize an area. • Allows broader community, property owners, and stakeholders to be more focused and deliberate • Identifying the types of projects and improvements • Results in greater buy-in of the identified objectives • Greater collaboration. Packet Pg. 27 Attachment2.3: Powerpoint Presentation (URA-New Approach for URA Process) 8 URA Plan Process • Focus on smaller areas • Strategic with regards improvements, land uses, design standards, amenities. • Include implementation strategy. • Identify improvements that are appropriate for a public/private partnership Packet Pg. 28 Attachment2.3: Powerpoint Presentation (URA-New Approach for URA Process) 9 Amended Midtown Urban Renewal Plan • Too large an area to effectively and strategically plan for improvements • Be more focused in terms of implementation • Include only those areas currently within TIF Districts Packet Pg. 29 Attachment2.3: Powerpoint Presentation (URA-New Approach for URA Process) 10 Amended Midtown Urban Renewal Plan Engage in a community process to identify a new and more strategic area to be targeted for infill and redevelopment Develop a new urban renewal plan following the new process . Packet Pg. 30 Attachment2.3: Powerpoint Presentation (URA-New Approach for URA Process) 11 Direction Sought • Does the URA Board agree with the new approach regarding the methodology for establishing new urban renewal plan areas? • Would URA Board like the URA staff to begin the process of amending the Midtown Urban Renewal Plan area as discussed? Packet Pg. 31 Attachment2.3: Powerpoint Presentation (URA-New Approach for URA Process) TROUTMAN WABASH BUCKINGHAM RESEARCH JEROME MONROE STOVER North College Marketplace: King Soopers grocery store-anchored shopping center developed by Loveland Commercial. Project Cost = $40 M Total Increment = $15.5 M Total Reimbursement = $8 M Reimbursement % of Project Cost = 20% Reimbursement % of Total Increment = 51.6% Reimbursement + Financing % of Total Increment = 71.6% Urban Renewal Plan Area Tax Increment Financing (TIF) District Streets Approved Projects ! 1 ! 2 ! 3 ! 4 ! 5 ! 7 ! 8 ! 9 ! 10 6 Kaufman & Robinson, Inc.: New 10,000 sq. ft. building for business expansion. Project Cost = $1.6 M Total Increment = $600,000 Total Reimbursement = $193,000 Reimbursement % of Project Cost = 12.1% Reimbursement % of Total Increment = 32.2% Reimbursement + Financing % of Total Increment = 37.5% The Summit: 676-bed student housing project with 8,000 sq. ft. commercial space, located adjacent to MAX BRT. Project Cost = $44 M Total Increment = $7 M Total Reimbursement = $5 M Reimbursement % of Project Cost = 11.4% Reimbursement % of Total Increment = 71.4% Reimbursement + Financing % of Total Increment = 100% Prospect Station: 32-unit housing project with 1,000 sq. ft. commercial space, located adjacent to MAX BRT and Mason Trail. Project Cost = $5.9 M Total Increment = $865,340 Total Reimbursement = $494,000 Reimbursement % of Project Cost = 8.4% Reimbursement % of Total Increment = 57.1% Reimbursement + Financing % of Total Increment = 77.3%* North College Avenue Road Improvements: Asphalt overlay, urban design elements, on-street bike lane, updated stormwater system, and safety improvements Project Cost = $11.2 M Total Increment = No direct increment generated Total Reimbursement = $2.7 M Reimbursement % of Project Cost = 24.1% Reimbursement % of Total Increment = N/A Reimbursement + Financing % of Total Increment = N/A Valley Steel & Wire Company: 19,000 sq. ft. expansion of existing facility; URA funded the associated sewer expansion. Project Cost = $900,000 Total Increment = $510,000 Total Reimbursement = $110,000 Reimbursement % of Project Cost = 12.2% Reimbursement % of Total Increment = 21.6% Reimbursement + Financing % of Total Increment = 25.5% Innosphere: New 31,000 sq. ft. LEED Platinum building for the regional technology incubator. Project Cost = $7.2 M Total Increment = $4.3 M Total Reimbursement = $2.8 M Reimbursement % of Project Cost = 38.9% Reimbursement % of Total Increment = 65.1% Reimbursement + Financing % of Total Increment = 86.0% Jax Mercantile: Expansion of existing store to increase retail capacity by 25%. Project Cost = $1.2 M Total Increment = $656,000 Total Reimbursement = $172,000 Reimbursement % of Project Cost = 14.3% Reimbursement % of Total Increment = 26.2% Reimbursement + Financing % of Total Increment = 33.4% Northeast College Corridor Outrall (NECCO) Detention Pond: Future regional detention pond purchased by the City of Fort Collins. Project Cost = $1.22 M Total Increment = No direct increment generated Total Reimbursement = $326,000 Reimbursement % of Project Cost = 26.7% Reimbursement % of Total Increment = N/A Reimbursement + Financing % of Total Increment = N/A Aspen Heights: 220-unit student-oriented housing project. Project Cost = $46.5 M Total Increment = $2.5 M Total Reimbursement = $792,166 Reimbursement % of Project Cost = 1.7% Reimbursement % of Total Increment = 31.7% Reimbursement + Financing % of Total Increment = 31.7% I Pending Projects ! 11 Foothills Mall Fort Collins Urban Renewal Authority Project Map * Final financing cost not yet established Packet Pg. 18 Attachment2.1: URA Project Map (URA-New Approach for URA Process) 25% 15% Packet Pg. 14 Attachment1.3: Powerpoint Presentation (URA-Financial Management Policy) Developer Cost Capital N/A -Negotiated -Limited by the Max % TIF Commitment Available N/A -Negotiated -Limited by the Max % TIF Commitment Available % TIF Contribution relative to Total Project Cost 25% 15% *Includes borrowing costs **Max % TIF Commitment on Future Prospect South projects limited to 75% Packet Pg. 6 Attachment1.1: TIF FInancing Policy (URA-Financial Management Policy) and be lost to the Mall project indefinitely. Packet Pg. 16