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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 02/20/2001 - FIRST READING OF ORDINANCE NO. 29, 2001, APPROPRIA AGENDA ITEM SUMMARY ITEM NUMBER: 25 DATE: February 20, 2001 FORT COLLINS CITY COUNCIL Jay Hardy STAFF: Alan Krcmarik SUBJECT: First Reading of Ordinance No. 29, 2001, Appropriating Prior Year Reserves in the Downtown Development Authority Operation and Maintenance Fund for the Replacement of the Sidewalk on the West Side of the 200 Block of South College Avenue. RECOMMENDATION: Staff and the Downtown Development Authority Board recommend adoption of the Ordinance on First Reading. FINANCIAL IMPACT: In 1999 and 2000, the DDA completed bond transactions for a variety of projects within the Authority's boundaries. Because some of the projects included for funding in these transactions are now on hold, the Authority has unspent and unencumbered proceeds that may be used for other projects. If adopted, this Ordinance will appropriate $32,000 in proceeds from the 2000 bond transaction held in the DDA's Operation and Maintenance Fund for the sidewalk in front of the newly remodeled Ace Hardware business on College Avenue. i EXECUTIVE SUMMARY: This Ordinance appropriates prior year reserves in the Downtown Development Authority's Operation and Maintenance Fund for the purpose of constructing sidewalk improvements on the west side of the 200 block of South College Avenue. The Downtown Development Authority (DDA) has as part of its mission, the ability to participate in street, sidewalk, and other improvements that renovate and otherwise improve the businesses and public improvements in the downtown area. The new owner of the old Larrabee's location (227 South College Avenue) has requested, and the DDA Board has approved, up to $32,000 for the replacement of the existing sidewalk. The DDA has sufficient prior year reserves available for this purpose. BACKGROUND: On February 1,2001,the DDA committed up to$32,000 for the replacement of the sidewalk on the west side of the 200 block of South College Avenue. The location is immediately adjacent to Ace Hardware and the property where Larrabee's Home Furnishings had been located for over 20 years. During a presentation to the DDA Board of Directors regarding the redevelopment of the 227 South College Avenue property (old Larrabee's) the new owner, Tom McClelland of Ace Hardware outlined his plans to renovate this property and subsequently move from his current location to the DATE: February 20, 2001 2 ITEM NUMBER: 2 main level of the old Larrabee's building. Additionally,a patio furniture store will be located in the basement of this property. Following the move to the new property, the current Ace Hardware location will be home to a new tenant, and this property will also be renovated. The renovation of the old Larrabee's location will be complete with a new fagade comprising brick and stucco to better fit the ambiance of downtown. The total renovation cost is estimated to be $524,333. The DDA has committed $23,871 toward fagade improvements in addition to the $32,000 for sidewalks. DDA felt it was a unique opportunity to address the sidewalk renovation during the relatively short downtime, which will be experienced by both the current and future Ace Hardware locations. This effectively reduces any additional inconvenience to retail shoppers. Additionally, the streetscape improvements to the corner of Olive and College Avenue funded by the General Improvement District are now complete. Combining the street corner improvements, the fagade improvements and the sidewalk renovation will give the entire west side of the street a much needed face-lift. In February 2000, the City Council adopted Ordinance No. 9,2000, which authorized the issuance of City of Fort Collins, Colorado, Downtown Development Authority Subordinate Tax Increment Revenue Bonds, Series 2000A, in the aggregate principal amount of$610,000, for the purpose of financing certain capital improvements and capital projects. Certain of the projects originally planned to take place and receive financial support from these bond proceeds have been delayed, or may not go forward. Because the proposed sidewalk improvements are within the range of projects for which the bond proceeds may be used,the DDA has recommended using$32,000 of the bond proceeds in the Operations and Maintenance Fund for the replacement of the sidewalk in front of 227 South College Avenue. An excerpt of the minutes of the DDA Board's February 1, 2001, meeting regarding this matter is attached. ORDINANCE NO. 29, 2001 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING PRIOR YEAR RESERVES IN THE DOWNTOWN DEVELOPMENT AUTHORITY OPERATION AND MAINTENANCE FUND FOR THE REPLACEMENT OF THE SIDEWALK ON THE WEST SIDE OF THE 200 BLOCK OF SOUTH COLLEGE AVENUE WHEREAS, the Downtown Development Authority("DDA") has as part of its mission the ability to participate in street, sidewalk, and other improvements that renovate and otherwise improve the businesses and public improvements in the downtown area; and WHEREAS,during a presentation to the DDA Board of Directors,the new owner of the 227 South College Avenue property(the former Larrabee's Home Furnishings Store),outlined his plans to renovate this property and subsequently move from his current location (Ace Hardware)to the main level of the old Larrabee's building; and WHEREAS,following the move to the new property,the current Ace Hardware location will be home to a new tenant and will also be renovated; and WHEREAS, the renovation of the old Larrabee's site will be complete with a new facade comprising brick and stucco to better fit the ambiance of downtown; and WHEREAS, the total renovation cost is estimated to be $524,333; and WHEREAS, the DDA believes that the foregoing change in use of these buildings presents a unique opportunity to address the sidewalk renovation during the relatively short downtime which will be experienced by both the current and future Ace Hardware locations and would effectively reduce any additional inconvenience to retail shoppers; and WHEREAS, in February 2000, the City Council adopted Ordinance No. 9, 2000, which authorized the issuance of City of Fort Collins, Colorado, Downtown Development Authority Subordinate Tax Increment Revenue Bonds, Series 2000A, in the aggregate principal amount of $610,000,for the purpose of financing certain capital improvements andcapital projects(the"2000A Bonds"); and WHEREAS, certain of the projects originally planned to take place and receive financial support from proceeds of the 2000A Bonds have been delayed, or may not go forward; and WHEREAS, because the proposed sidewalk improvements are within the range of projects for which the bond proceeds may be used, the DDA has recommended using $32,000 of the proceeds from the 2000A Bonds in the form of prior year reserves in the Operations and Maintenance Fund for the replacement of the sidewalk in front of 227 South College Avenue; and WHEREAS,on February 1, 2001, DDA committed $23,871 of appropriated funds toward facade improvements and in addition committed up to$32,000 for the replacement of the sidewalk on the west side of the 200 block of South College Avenue; and WHEREAS,Article V, Section 9, of the Charter of the City of Fort Collins also 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 the desire of the Council to appropriate the sum of$32,000 from prior year reserves in the Downtown Development Authority Operations and Maintenance Fund to be used for the replacement of the sidewalk on the west side of the 200 block of South College Avenue. NOW,THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that there is hereby appropriated for expenditure from 2000A Bond proceeds in the form of prior year reserves in the Downtown Development Authority Operation and Maintenance Fund the sum of THIRTY-TWO THOUSAND DOLLARS ($32,000) to be used for the replacement of the sidewalk on the west side of the 200 block of South College Avenue. Introduced and considered favorable on first reading and ordered published this 20th day of February, A.D. 2001, and to be presented for final passage on the 6th day of March, A.D. 2001. Mayor ATTEST: City Clerk Passed and adopted on final reading this 6th day of March, A.D. 2001. Mayor ATTEST: City Clerk Excerpts from the Downtown Development Authority Board Meeting of February 1, 2001 relating to the 227 South College Avenue project. (Minutes have not yet been reviewed and approved by the Board.) 227 South College Avenue Mr. Hardy introduced Tom McClelland, owner of Ace Hardware and his general manager, Jeremy Lawson. Ace Hardware will vacate its current premises in march and move into the old Larrabee's space at 227 South College Avenue, and the management team from Larrabee's will own and operate a patio furniture operation from the basement of the building. The request being made by Mr. McClelland for the fagade renovation is $23,871. Mr. Hardy shared what is a unique opportunity to improve/replace the existing sidewalk in front of this property which is in a poor state of repair. Although this is not part of the owner's request, the project is flanked by historic buildings, and the Olive Street corner is currently undergoing renovation. It would make sense to, while construction is underway, to take care of this need at the same time. The current owner does not have the funds to underwrite this cost, which is estimated at $18,000 for the section immediately adjacent to 227 South College Avenue. The proposals were considered separately. Around the table, strong support for the project was articulated. The feeling was that the store is an anchor for this part of downtown, with a reputation that draws traffic into the area. Mr. Hewitt then moved to approve DDA participation in the fagade in the amount of $23,871. This was seconded by Mr. Pitner and carried unanimously. Some discussion followed concerning the sidewalk improvements because the curb cut-on the noth end is very high. Consideration was given to adding yet another step to the curb with some appropriate landscaping. However, concern was expressed about the impact on draniage and how far beyond the building might be affected. Ms. Brayton and Mr. Hardy both suggested that it made sense to do the sidewalk improvements outside the vacated Ace Hardware site at the same time, which would bring the participation level to $32,000. Mr. Goodale inquired if the funds, which are to be drawn from capital improvement project, can be replaced from our tax increment reserves. The response was affirmative, with City Council appropriation. Mr. Meadors made a motion to approve up to $32,000 from the capital improvements fund, this amount divided between two components: (a) $18,000 for sidewalk renovation in front of 227 South College Avenue (b) $14,000 for sidewalk improvements in front of the present Ace Hardware. Final design to be contingent upon approval by the DDA; staff to coordinate construction schedule with Mr. McClelland. Owner will take responsibility for getting concrete work completed, and DDA will reimburse funds upon completion. The motion was seconded by Mr. Belcher and carried unanimously. Mr. Goodale then moved that DDA transfer $32,000 from tax increment reserve to capital improvements and to request that City Council authorize the transfer. This motion is tied specifically to the sidewalk improvements detailed above. Mr. Meadors seconded the motion, which carried unanimously. z