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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 07/01/2014 - RESOLUTION 2014-056 ESTABLISHING A CITY COUNCIL MAAgenda Item 23 Item # 23 Page 1 AGENDA ITEM SUMMARY July 1, 2014 City Council STAFF Darin Atteberry, City Manager SUBJECT Resolution 2014-056 Establishing a City Council Mall Redevelopment Committee to Advise the City Manager in Connection with the Redevelopment and Reimbursement Agreement for the Redevelopment of Foothills Mall. EXECUTIVE SUMMARY The purpose of this item is to form a three-member committee of Councilmembers, to be known as the “Mall Redevelopment Committee,” to be available to the City Manager for assistance with the implementation of the Foothills Mall Redevelopment and Reimbursement Agreement. STAFF RECOMMENDATION Staff recommends adoption of the Resolution. BACKGROUND / DISCUSSION On May 6, 2014, the City Council approved the First Amendment to the Foothills Mall Redevelopment and Reimbursement Agreement. The First Amendment modified certain terms and conditions related to the issuance of the District Bonds, increased the mechanisms for oversight of certain performance requirements by the City, and clarified the level of administrative authority of the City Manager to interpret and amend the Agreement. It was also determined that a resolution would be brought forward at a later date establishing a “Mall Redevelopment Committee”. This Resolution establishes the role and responsibilities of the Mall Redevelopment Committee. Due to the complexity of the Mall redevelopment project, it is expected and understood that the specific details of the Mall Project will continue to evolve, and the implementation of the Agreement will require the City Manager to interpret and apply the terms of the Agreement and work with the parties to manage project changes and challenges as they arise from time to time. Resolution 2014-032 modified Section 25.5 and 26 of the Redevelopment Agreement to clarify that the City Manager, in consultation with legal counsel, has the authority to amend the agreement, provided there is no change or adverse impact to the City’s financial interests or substantial change to the scope or general character of the project. As part of this clarification, the City Manager and the City Council believe that it would be helpful for the City Council to form a three-member committee of Councilmembers, to be known as the “Mall Redevelopment Committee." The purpose of the Mall Redevelopment Committee is to act as a conduit to the larger City Council for information regarding the status of the project, and to be available to the City Manager for feedback and advice in connection with administrative amendments to the Redevelopment Agreement. It is intended that the Mall Redevelopment Committee be an advisory group to the City Manager concerning potential administrative modifications per Section 25.5 and 26 of the Redevelopment Agreement. Agenda Item 23 Item # 23 Page 2 The following is representative of the type of information that would be included within the reports provided to the Committee and the associated discussions of the Committee (this is not intended to be an exhaustive list): Lease activity and flow of funds related to required leasing thresholds, including information regarding lease verification visits. Status of conditions precedent to bond issuance Status of construction schedule Status updates on performance of conditions (i.e. Youth Activity Center, Pedestrian underpass, sustainability measures) Status update any requested administrative amendments to Redevelopment Agreement Provide opportunity for periodic site visits. PUBLIC OUTREACH This item was discussed during the May 6, 2014 City Council hearing on the First Amendment to the Foothills Mall Redevelopment and Reimbursement Agreement. - 1 - RESOLUTION 2014-056 OF THE COUNCIL OF CITY OF FORT COLLINS ESTABLISHING A CITY COUNCIL MALL REDEVELOPMENT COMMITTEE TO ADVISE THE CITY MANAGER IN CONNECTION WITH THE REDEVELOPMENT AND REIMBURSEMENT AGREEMENT FOR 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 with the Fort Collins Urban Renewal Authority (“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 Agreement incorporating modifications to update and improve the terms and conditions of the Agreement in light of the final planning and analysis, and ongoing work to carry out the Foothills Mall redevelopment project (the “Mall Project”) that is the subject matter of the Agreement; and WHEREAS, the Agreement was executed by the parties and went into effect as of January 17, 2014; and WHEREAS, in view of the complexity of the Mall Project, the need for flexibility in connection with the details of implementation and interpretation of the Agreement, and the change in understanding of the optimum sequence of actions for carrying out the Mall Project and the issuance of the District Bonds provided for in the Agreement, the parties negotiated a First Amendment to the Agreement (“First Amendment”), which was approved by the City Council and the Board of Commissioners of the Authority on May 6, 2014; and WHEREAS, the First Amendment modified certain terms and conditions related to the issuance of the District Bonds, increased the mechanisms for oversight of certain performance requirements by the City, and clarified the level of administrative authority of the City Manager to interpret and amend the Agreement; and WHEREAS, the First Amendment was executed by the parties and went into effect as of May 12, 2014; and WHEREAS, it is expected and understood that the specific details of the Mall Project will continue to evolve, and the implementation of the Agreement, as amended, will require the City Manager to interpret and apply the terms of the Agreement and work with the parties to manage project changes and challenges as they arise from time to time; and WHEREAS, in light of the need for ongoing oversight and decision making by the City Manager related to the Mall Project, the City Manager and the City Council believe that it would be helpful for the City Council to form a three-member committee of Councilmembers, to be known as the “Mall Redevelopment Committee,” to be available to the City Manager for - 2 - feedback and advice in connection with his decision making under the Agreement, as amended, and the implementation of said Agreement. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS, as follows: Section 1. That, for the purposes described above, a City Council Mall Redevelopment Committee is hereby created, to consist of three Councilmembers. Section 2. That the following Councilmembers are hereby appointed to serve on said committee until such time as the City Council may decide to make new appointments: 1. ______________ 2. ______________ 3. ______________ Section 3. That it is the City Council’s intent that upon completion of the redevelopment of the commercial portion of the Mall Project, the Mall Redevelopment Committee will be discontinued. Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 1st day of July, A.D. 2014. _________________________________ Mayor Pro Tem ATTEST: _____________________________ City Clerk