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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 05/17/2011 - RESOLUTION 2011-041 FURTHER EXTENDING THE DEADLINE DATE: May 17, 2011 AGENDA ITEM SUMMARY I D STAFF: Rick Richter FO-T COLLINS CITY COUNCIL Resolution 2011-041 Further Extending the Deadline for the City of Fort Collins and the Town of Windsor to Take Certain Actions Required by the Parties'Intergovernmental Agreement Pertaining to the Development of the Interstate 25/State Highway 392 Interchange. EXECUTIVE SUMMARY On December 21,2010,Council approved an intergovernmental agreement(IGA)with the Town of Windsor pertaining to the development of the I-25 interchange at the intersection of State Highway 392. The IGA states that, by March 31, 2011, the City and Windsor will take certain actions to implement the IGA. On March 15, 2011, by adopting Resolution 2011-026, Council extended the deadline for all actions to be taken under Section 4.2.2, 4.3.1 and 4.3.8 of the IGA to June 7, 2011. After meeting with adjacent property owners who expressed concerns regarding the Corridor Activity Center("CAC") boundaries, it is staffs opinion that more work is needed to identify those properties that would immediately and substantially benefit from the proposed interchange improvement of that Interchange. Staff recommends that this deadline be extended for an additional 120 days to allow for more data to be developed to support the appropriate CAC boundaries and conduct additional public outreach with the effected stakeholders. Resolution 2011-041 authorizes that extension. The Windsor Town Council will consider a similar resolution. BACKGROUND / DISCUSSION City Council and the Windsor Town Board held five joint work sessions to discuss the 1-25 and State Highway 392 Interchange Improvements, System Level Study (1601 Process), and design. The System Level Study for this interchange was approved by the CDOT Transportation Commission on January 21, 2009. This approval, along with a signed IGA, has allowed the Project to move into the final design phase. The accelerated design process for this Project was completed in January 2010. The accelerated design process made this Project"shovel ready," thereby enhancing the possibility of obtaining funding for construction. The design followed the intent of the guiding principles adopted by the City Council and the Town Board in August 2008, specifically the community character guiding principle that states: "The 1-25/392 Interchange is an important gateway feature for both Fort Collins and Windsor. It is viewed as Fort Collins'southern gateway and the main gateway into the Town of Windsor. The design of the interchange, sensitivity to view sheds and associated land development shall enhance the gateway concept." The total construction and right-of-way cost for the Project is estimated at $27.5 million. On May 20, 2010, the Colorado Transportation Commission authorized the allocation of$20 million for the construction of the Interchange. CDOT had previously identified$2.5 million of state FASTER funds to be used for right of way acquisition.The funding gap of$5 million has been met by the local communities. On December 21,2010,the City Council adopted Resolution 2010-077 authorizing the Mayor to execute the IGA.The primary purposes of the IGA are to set forth the respective financial contributions of the City and Windsor related to the reconstruction of the Interchange, to provide for orderly land use and development within the area immediately surrounding the Interchange, to ensure that the property owners most directly benefitted by the Interchange improvements proportionally share in the cost of the improvements, and to provide for a revenue sharing formula between the City and Windsor. The IGA establishes a Corridor Activity Center("CAC") around the Interchange, within which certain land uses have been agreed upon by the parties and two kinds of fees will be imposed to reimburse the City and Windsor for their financial contributions to the construction of the Interchange and to help fund the construction and maintenance of improvements and services within the CAC. The fee is a development impact fee that will be paid by the property May 17, 20011 -2- ITEM 14 owners within the CAC. The proceeds from that fee will reimburse the City and the Town for their share of the cost of constructing the Interchange($2.5 million each).The second is a public improvement fee("PIF)to be imposed by retailers within the CAC. The PIF revenues will be used primarily to pay for the maintenance of the "enhanced improvements"to the Interchange that the Colorado Department of Transportation will not be maintaining. In addition, the PIF revenues will be used to fund a list of improvements and services that the parties are in the process of identifying, with the input of affected property owners, and that will primarily benefit the properties within the CAC. Section 3.2 of the IGA requires that, on or before March 31, 2011, the governing bodies of the City and Windsor shall each adopt mutually acceptable design standards for the CAC. Those standards, explained by Ordinance No. 036, 2011, were adopted by the Council on second reading on March 22, 2011. The IGA originally set a deadline of March 31, 2011. On March 15, 2011, by adopting Resolution 2011-026, Council extended the deadline for all actions to be taken under Section 4.2.2, 4.3.1 and 4.3.8 of the IGA to June 7, 2011. Staff of both municipalities has recommended a 120 day extension of the deadline within which these actions are to be taken in orderto allow additional time to complete the public outreach and make recommendations.This Resolution will approve that extension. FINANCIAL/ ECONOMIC IMPACTS This action extends the deadline for City and Town of Windsor to take certain actions required by the Intergovernmental Agreement pertaining to the development of the Interstate 25/State Highway 392. There is no economic impact related to this action. Below is the breakdown of the project costs. The estimated total cost of the Project is $27,500,000, which is to be funded as follows: State FASTER Funds Contribution (Right of Way) $ 2,500,000 Federal HIRE Funds Contribution $20,000,000 Fort Collins Funds Contribution $ 2,500,000 Windsor Funds Contribution $ 2,500,000 Total Funds: $27,500,000 ENVIRONMENTAL IMPACTS One of the guiding principles adopted by Council in 2008 (Resolution 2008-080), states: Environmental Sustainability/Resource Protection:Ensure that interchange improvements occur in such a way that it minimizes environmental impacts to the greatest extent possible and protects the physical and natural environment in and around the interchange including but not limited to the Fossil Creek Reservoir Area. Subsequently, the City of Fort Collins and Town of Windsor have jointly agreed that the Project will mitigate wetland impacts at a 3:1 ratio, this meaning that the estimated 0.4 acres of impacts from the Project will be mitigated with the creation of 1.2 acres of new wetlands. The Project will have a positive impact on long-term air quality.The Design Team has estimated that adding sidewalks and bike lanes and improving the traffic flow will increase the number of people walking and biking and reduce delays along SH-392 (Carpenter Road). The utility portion of the Project includes improvements to stormwater quality with the installation of facilities to remove suspended solids and hydrocarbon contaminants from roadway drainage prior to discharge into receiving waters.The Interchange improvement will result in congestion reduction of 15 million fewer vehicle hours of travel resulting in $168 million in savings through 2035. Over 14 million gallons of fuel will be saved through year 2035 as a result of improved traffic flow. This action extends the deadline for the City and the Town of Windsor to take certain actions required by the Intergovernmental Agreement pertaining to the development of the Interstate 25/State Highway 392. This action also authorizes an amendment to the 1-25 and State Highway 392 Intergovernmental Agreement (IGA) between Town of Windsor (Town), City of Fort Collins (City) and Colorado Department of Transportation (CDOT). There is no environmental economic impact related to this action. May 17, 20011 -3- ITEM 14 STAFF RECOMMENDATION Staff recommends adoption of the Resolution. ATTACHMENTS 1. Location map 2. Fort Collins/Windsor Intergovernmental Agreement Attachment 1 z BO p 4THki On TR UT AN 19 Qz Q z 7G91 Luuj z ❑ w m Q N U W HARMONY RD E HARMONY RD E COUN ROAD 38 w S Q w OltA BOG } Z Zw 0 Q Lu 00OKECHTER RD CD 36 O u� u) 0 f p p Q w _ � (n � CO Oz Lu w N � w �O O z Cz J Lu W TRILBY RD E TRILBY RD w w Q Q 1 - 25 392 w � p J J 0z 0 z Interchange 0z w m A" D 6 UNTY ROAD CARFENTER RD u) E COUNTY ROAD 32 STATE HIGHWAY 3 2 Ln m 0 Q ❑ Q O }C\jO O O Ln N z Z c O 00 = 0 0 o 0 U 0z n E COUNTY ROAD 0 COUNTY ROAD 30 z Legend AUNTY/ ROAD 30 _ p Mod Fort Collins City Limits o g o Dz Growth Management Area o a N z m D 0 ATTACHMENT 2 INTERGOVERNMENTAL AGREEMENT PERTAINING TO THE DEVELOPMENT OF THE INTERSTATE I25/STATE HIGIIWAY 392 INTERCHANGE THIS AGREEMENT is entered into this o�4 day of 2010, by and between the City of Fort Collins, Colorado, a Colorado home le mu uc' ality (the "City"), and the Town of Windsor, Colorado, a Colorado home rule municipality (the "Town"), collectively referred to herein as the "Parties". RECITALS WHEREAS, the City and the Town are situated on opposite sides of Interstate 25 and are both committed to planned and orderly development; to regulating the location and activities of development which may result in increased demand for services; to providing for the orderly development and extension of urban services; to simplifying governmental structure when possible; to promoting the economic vitality of both municipalities; to protecting the environment; and to raising revenue sufficient to meet the needs of their citizens; and WHEREAS, on June 28, 1999, the City and the Town entered into two intergovernmental agreements relating to the annexation of properties in one another's jurisdictions; and WHEREAS, these agreements were limited in their duration; and WHEREAS, the parties wish to expand and malce permanent their agreement relating to annexations in one another's jurisdiction; and WHEREAS, the City and the Town have been in regular contact with the Colorado Department of Transportation ("CDOT") about the sub-standard condition of the Interstate 25/State Highway 392 Interchange ("Interchange"), and the importance of that Interchange to the City and the Town and is an integral part of the regional transportation network and a critical gateway to both communities; and WHEREAS, in recent years, the capacity of the Interchange has been significantly impacted by state and regional growth, as well as local growth in Windsor and southeast Fort Collins, so that the Interchange is unable to handle current traffic capacity during peak hours; and WHEREAS, the Interchange is characterized by numerous design and operational deficiencies and substandard safety features, including the absence of any transit facilities; and WHEREAS, on March 22, 2006 the City and Town entered into an intergovernmental agreement (the "March 22"d Agreement") that, among other things, defined a Corridor Activity Center in the immediate vicinity of the Interchange (the "CAC"); and WHEREAS, the March 22, 2006 Agreement also sets forth the willingness of the City and the Town to work cooperatively toward developing a comprehensive development plan for the CAC and surrounding areas, to explore financing mechanisms for reconstructing the Interchange, and to evaluate potential revenue sharing alternatives; and WHEREAS, in 2008, the City and the Town authorized the execution of two additional intergovernmental agreements, the purposes of which were to pursue funding for the Interchange and expedite its design and approval by CDOT, and also passed resolutions reaffirming their commitment to continued cooperation in the planning, design and construction of the Interchange and approving certain basic principles related to that cooperative effort, including a commitment to long-term, equitable sharing of revenues derived from new development within the CAC; and WHEREAS, because of the proximity of the two municipalities on either side of the Interchange, the way in which the Interchange is reconstructed and the way in which the property within the CAC is developed will affect the economic and environmental well-being of both communities; and WHEREAS, for the foregoing reasons, the City and the "Town have worked diligently with each other and with CDOT, as well as various elected federal officials, landowners, local officials, and others to promote and fund the design and construction of improvements to the Interchange; and WHEREAS, the efforts of the City and the Town have been successful, and the majority of the finding is now in place to allow the immediate construction of improvements to the Interchange, subject only to the appropriation of the remaining funds to be contributed by the City and the Town; and WHEREAS, the City and Town wish to provide for increased coordination of planning and managing development within the CAC, cost sharing for construction of Interchange improvements, revenue sharing, operation and maintenance of certain Enhanced Improvements, providing needed services in the interchange area, and resolving any conflicts arising with regard to these topics; and WHEREAS, the City and the Town have both adopted the Northern Colorado Regional Communities I-25 Corridor Plan, which establishes a shared vision for development of property adjacent to Interstate 25; and WHEREAS, the Colorado Constitution, Section 29-20-101 et seq., of the Colorado Revised Statutes, and the Charters of both the City and Town authorize the City and the Town to enter into mutually binding and enforceable agreements regarding the joint exercise of planning, zoning and related powers. Page 2 of 16 NOW, THEREFORE, for and in consideration of the mutual covenants herein contained and other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the Parties hereto agree as follows. SECTION 1. DEFINITIONS In this Agreement, unless a different meaning clearly appears from the context, the following definitions shall apply: 1.1. "Agreement' means this Agreement and it attachments. 1.2. "City" means the City of Fort Collins, Colorado. 1.3. "CDOT" means the Colorado Department of Transportation. 1.4. "Corridor Activity Center" or "CAC" means that joint planning area referred to above and more frilly described on Exhibit "A," attached hereto and incorporated herein by this reference; as such description may be amended by the Parties pursuant to Section 2 below. 1.5. "Developable Land" means that portion of each parcel of real property within the CAC upon which buildings, infrastructure or other improvements may lawfully be constructed, taking into consideration the physical characteristics of the property and all applicable state and local laws and regulations. L6. "Development Proposal' means an application for the development of a parcel of land within the CAC that will, when approved and constructed, result in an increase of traffic in the CAC. 1.7. "Effective Date" means the date that the last party signs this Agreement, or ten days after the final approval by the last governing board of the City or Town. 1.8. "Enhanced Improvements" means those improvements to the Interchange that will be maintained by the City and the Town as shown on Exhibit "A" and Exhibit"A-1" to that certain agreement between CDOT, the City, and the Town (the "CDOT IGA") regarding the funding, construction and maintenance of the Interchange improvements. 1.9. "Interchange" means the Interstate 25 and State Highway 392 interchange. 1.10. "Public Improvement Fee" or "PIF" means the public improvement fee to be more frilly described in the PIF Covenant. 1.11. "PIF Covenant' means a declaration of covenants by which a developer of property for retail use within the CAC agrees to impose and implement a Public Improvement Fee. Page 3 of 16 1.12. "PIF Revenue" means that revenue derived from the imposition and collection of a PIF in accordance with this Agreement and the PIF Covenant. 1.13. "Project" means the constriction by CDOT of a new Interchange at Interstate Highway 25 and Colorado State Highway 392. 1.14. "Property Owner" means and includes the fee owner of the property as well as any developer or other agent of the fee owner who, acting with the knowledge or consent of the fee owner, submits an application for approval of a Development Proposal or Redevelopment Proposal for such property. 1.15. "Property Tax Increment" means the net new revenue generated by property taxes on real property located within the boundaries of the CAC, using a base rate of 9.797 mils, as applied to the assessed valuation developed by Larimer County as of the Effective Date as the baseline. 1.16. "Redevelopment Proposal" means an application for the redevelopment of a parcel of land within the CAC that will, when approved and constructed, result in an increase in traffic in the CAC beyond that generated by the development currently in place. 1.17. "Sales Tax Increment" means the net new sales tax revenues generated by sales within the boundaries of the CAC, using a base rate of 2.25% and the amount of tax revenue received in the twelve (12) months immediately preceding the Effective Date as the baseline. 1.18. "Town"means the Town of Windsor, Colorado. SECTION 2. CONFIGURATION OF THE CAC For the purposes of this Agreement, the Parties have agreed upon the boundaries of the CAC. The Parties acknowledge that, as the construction of the Project proceeds, and development of the properties surrounding the Interchange commences, it may be necessary for the Parties to agree upon amendments to the boundaries of the CAC so as to include additional properties benefited by the construction of the Project. It is the intention of the Parties to conduct a fair and inclusive process with regard to any such proposed amendments, respecting the needs and desires of the surrounding Property Owners, as well as the Parties, and taking into consideration any changed conditions in the area of the Interchange. Any such amendments shall be adopted by the governing bodies of the Parties by resolution, and upon such adoption the amended CAC area shall become the CAC area for all purposes under the provisions of this Agreement, including but not limited to Sections 3,4, 5 and 6 below. SECTION 3. REVIEW OF DEVELOPMENT AND REDEVELOPMENT PROPOSALS 3.1. Permitted uses. Land uses within the CAC shall be limited to those uses shown on Exhibit "B" attached hereto and incorporated herein by this reference. All zoning Page 4 of 16 ordinances or other legislation needed to implement the regulation of land uses as shown on Exhibit "B" shall be presented to the respective governing bodies of the Parties no later than March 31, 2011. 3.2. Applicable Standards. The Parties have heretofore adopted standards and guidelines for development of the properties adjacent to Interstate 25, both individually and cooperatively, and have adopted various land use plans for that area, including the Northern Colorado Regional I-25 Corridor Plan (2001). On or before March 3-1, 2011, the governing bodies of the Parties shall each adopt more specific, mutually acceptable. design standards for the CAC (the "CAC Design Standards"). In the event that the Parties have been unable to agree upon, and adopt mutually acceptable design standards for the CAC on or before said date, then the question of the development and approval of such standards shall be resolved pursuant to the mediation/arbitration process described in Section 8 below. 3.3. Review and Approval of Site Specific Development Proposals. 3.3.1 In order to promote and maintain the commitments of the City and Town with regard to development within the CAC, the Parties hereby jointly agree to the following review process for Development or Redevelopment Proposals for property within the CAC. a. Neither the City nor Town shall, without the prior written consent of the other Party, approve the construction of any improvements within the CAC which are inconsistent with the CAC Design Standards. b. Plans and specifications for any Development or Redevelopment Proposal on land located within the CAC that are received by either Party after the Effective Date shall, no later than thirty (30) business days prior to taking action, be submitted by the Party having jurisdiction over the proposal to the other Party for review and comment; provided, however, that the Parties may mutually agree to a shorter or longer review and comment period. i C. Such plans and specifications shall include a brief written description of the Development or Redevelopment Proposal and the surrounding vicinity, development maps and graphics, and renderings of all proposed improvements. d. The receiving Party shall review the materials and respond to the other Party with written comments within the aforementioned thirty (30) business days. Each party agrees that it shall use its best efforts to provide comments in a timely fashion. However, the Parties expressly agree that any delay in submitting comments shall not require the delay of hearings or decisions by the party having jurisdiction over the Development Proposal. Page 5 of 16 e. The Parties shall designate a single point of contact for the communication of materials and comments contemplated by this Section. f. The review and comment provided for herein is intended to be cooperative in nature, and is not intended to be binding upon the party having jurisdiction to grant, modify, or deny a Development or Redevelopment Proposal and shall not preclude the approval of any such proposal that is consistent with the CAC Design Standards and the provisions of this Agreement. 3.3.2. Notice of Incentives. In the event that either Party extends, or agrees to extend, to any applicant for approval of a Development or Redevelopment Proposal within the CAC, any financial or other incentives in connection with such Development or Redevelopment Proposal, such Party shall provide the other Party with a detailed description of such financial or other incentives prior to the formal approval of the same, excluding only such information as is proprietary in nature. The provision and funding of any such incentives shall be the sole responsibility of the Party having jurisdiction over the Development or Redevelopment Proposal, unless the Parties agree to the contrary in a written amendment to this Agreement. SECTION 4. COST SHARING 4.1. Initial Funding of the Project. 4.1.1 The Parties understand and agree that the Project will be constructed and managed by CDOT, and that CDOT has estimated the total cost of the Project, inclusive of the acquisition of required rights of way, to be $27.5 million. In order to fully fund the Project, each of the Parties shall, by ordinance or resolution adopted by their respective governing bodies, appropriate $2.5 million towards the cost of the Project, and pay such amounts to CDOT pursuant to an agreement with CDOT to be executed by the Parties on or after the Effective Date (the "CDOT IGA"). The City may, in its discretion, pay for the cost of enhanced wetland mitigation on the west side of Interstate 25, and the Town shall have no obligation to help fund such mitigation. The Parties shall attempt to recover their respective Two Million Five Hundred Thousand Dollar ($2,500,000) contributions to the cost of the Project from the Property Owners in the CAC, upon the development or redevelopment of their properties, pursuant to the provisions of Section 4.2 below. The City shall also attempt to recover the cost it incurs in connection with the foregoing wetland mitigation through the imposition of the PIF by retailers situated within that portion of the CAC that is within the City's territorial limits. Page 6 of 16 4.1.2. There shall be no further contributions to the Project by the Parties except by a written amendment to this Agreement that is adopted by the governing bodies of both Parties. 4.2. Reimbursement through a Development Impact Fee. 4.2.1 In recognition of the cost sharing between the Parties required by Section 4.1 above, and in further recognition of the principle that development and redevelopment should pay its own way, the Parties shall each enact a CAC Development Fee (the "Fee"), which shall be an impact fee imposed upon all properties in the CAC for which a Development Proposal or Redevelopment Proposal is approved. The purpose of the Fee shall be to repay the Parties for their contributions to the construction of the Project. Accordingly, the total amount of revenue to be generated by the Fee shall not exceed Five Million Dollars ($5,000,000), plus any adjustment for inflation or deflation made in accordance with Section 4.2.3 below unless additional contributions are made in accordance with the provisions of this Agreement. 4.2.2 Each Property Owner within the CAC shall, as a condition of the issuance of the first building permit issued pursuant to each phase of any Development Proposal or Redevelopment Proposal for his or her property, pay a proportionate share of the Fee. The amount of each Property Owner's share shall be determined by the Parties no later than March 31, 2011, and shall be calculated on the basis of the amount of Developable Land contained within each parcel of property. The amount paid by each affected Property Owner shall be adjusted annually in accordance with the Denver/Boulder Consumer Price Index. 4.2.3 The Parties shall, within sixty (60) days after collecting any Fee revenues from Property Owners, deposit such revenues into a CAC Development Fee Revenue Fund ("Fee Revenue Fund") to be established and administered by one of the Parties pursuant to a written administrative agreement approved by the Town Manager and the City Manager, which agreement shall include a provision whereby the Parties will equitably share the costs incurred in administering the Fee and managing the Fee Revenue Fund. The amounts deposited into the Fee Revenue Fund shall be disbursed annually to the Parties in equal amounts, without regard to whether the properties that generated the Fee revenues are located with the territorial limits of the City or the Town. Such disbursements shall continue until the City and the Town have been fully reimbursed for their initial contributions, adjusted for inflation. 4.2.4 Either Party may elect to forego the collection of all or any portion of the Fee amount due from a particular Property Owner in exchange for the Property Owner's provision of a reciprocal benefit to such Party, which benefit may include, but need not be limited to, the setting aside or Page 7 of 16 dedication to the public of a portion of the Developable Land within the parcel for purposes such as wetlands, open space, parks or other improvements or amenities. In the event that either party elects to forego the collection of any Fee, amounts pursuant to this provision, such Party shall nonetheless pay into the Fee Revenue Fund the full amount of the Fee that would have been due from the Property Owner had such election not been made. 4.3. Funding the Maintenance of the Enhanced Improvements and Additional Infrastructure and Services within the CAC through a Public Improvement Fee. 4.3.1 The Parties anticipate that CDOT will find the cost of maintaining all Project improvements except the Enhanced Improvements, and that the cost of maintaining the Enhanced Improvements will be borne by the Parties. In order to fund this cost, and in order to reimburse the City for its cost for wetland mitigation, and in order to provide an ongoing funding source for any additional infrastructure or services within the CAC that the Parties may wish to provide for the benefit of the properties within the CAC, each of the Parties shall require, as a condition of approval of any Development Proposal or,Redevelopment Proposal for a retail use within the CAC, that the Property Owner or developer require all retailers within such development to collect from their customers a Public Improvement Fee. The PIF shall be established in accordance with the provisions of a PIF Covenant to be approved by the Parties on or before March 31, 2011. The PIF Covenant, once executed, shall be recorded with the Larimer County Clerk and Recorder. 4.3.2 The Property Owner shall be responsible for ensuring that each retailer located within the development collects the PIF at the point of sale and remits the same to the Party having jurisdiction over the property in the same manner as sales taxes are remitted. 4.3.3 The rate of the PIF shall be established at no more than 0.5%. The precise amount of the PIF, the improvements and services to be funded by PIF Revenues, the transactions subject to the PIF, and all other particulars related to the PIF shall be agreed upon by the Parties no later than March 31, 2011, and all such improvements and services shall be shown on a "CAC List of PIF Improvements and Services." No Development Proposal or Redevelopment Proposal shall be approved by either Party until the amount of the PIF and the CAC List of PIF Improvements and Services have been approved by the governing bodies of the Parties by resolution or ordinance unless a particular Property Owner submitting a Development Proposal or Redevelopment Proposal agrees in writing to impose the PIF at such time as the Parties have agreed upon the amount of the same, have adopted the CAC List of Improvements and Services, and have so notified the Property Owner. Page 8of16 4.3.4 Within sixty (60) days after receiving any PIP Revenue, the receiving Party shall deposit the PIP Revenue into a PIP Revenue Fund to be established by the Parties and administered by one of the Parties pursuant to a written administration agreement approved by the Town Manager and the City Manager, which agreement shall include a provision whereby the Parties will equitably share the costs incurred in administering the PIP Revenue Fund; provided, however that the City may first reimburse itself for the wetland mitigation referenced in Section 4.1.1 above, up to a maximum amount of One Hundred Sixty-five Thousand Dollars ($165,000), from PIP Revenues generated by properties within its jurisdiction before depositing subsequent PIP Revenues into the PIP Revenue Fund. 4.3.5 The monies deposited into the PIF Revenue Fund shall be expended solely for the purpose of defraying the costs of the improvements and services shown on the CAC List of PIP Improvements and Services. Once all such improvements have been constructed and services commenced, the amount of the PIP shall be reduced to an amount commensurate with the cost of maintaining, repairing and replacing said- improvements and continuing said services for such period of time as may be determined by the parties to be reasonably necessary to serve the properties within the CAC and maintain the appropriate level of infrastructure and services therein. 4.3.6 If any Property Owners have previously constructed capital improvements within the CAC that are shown on the CAC List of PIP Improvements and Services, the fair market value of such improvements shall be credited against the amount of PIP that is due from retailers whose businesses are directly benefitted by such improvements. Said market value shall be determined as of the date that the first PIP payment is due from any such retailer. This "PiF Credit" shall be subject to the following terms and conditions and also subject to any additional administrative regulations that may be established by the Town Manager or City Manager: a. If a PIP Credit has not been exhausted within ten (10) years of the date of issuance of the first building permit for which a PIP was due to be imposed under the provisions of this Article, or within such other period as may be agreed upon in writing by the Parties, such PIP Credit shall lapse. b. A Property Owner or developer claiming entitlement to a PIP Credit shall apply for the same prior to or at the time of application for the issuance of any building permit for the development in question, which application shall be on a form provided by the Town or City for such purpose. Upon receipt of such application, the Town Manager or City Manager shall determine, in writing, the maximum value of the PIP Credit Page 9 of 16 that may be applied against the PIF due to be imposed by the PIF Covenant. 4.3.7 No later than December 31, 2030, the governing bodies of the parties will, formally-consider whether to continue the PIF at its then current rate, revise the amount of the PIF, or terminate the PIF altogether. 4.3.8 The Parties acknowledge that the Property Owners within the CAC are directly affected by the amount of the PIF, the purposes for which the PIF Revenues will be expended, and the period of time that the PIF will remain in effect. Accordingly, the Parties are committed to continuing to receive input from such Property Owners, as well as all other affected parties, during the period of time that the PIF List of Improvements and Services is being formulated. In the event that the Town Manager and the City Manager agree, in their discretion, that such input warrants an amendment to the provisions of this Section 4.3., the Parties shall formally consider such an amendment on or before March 31, 2011. SECTION 5. REVENUE SHARING 5.1. Terms and Conditions. In addition to sharing the PIF Revenues as provided in Section 4.3. above, the Parties shall, pursuant to the following terms and conditions, share the Property Tax Increment and Sales Tax Increment generated by properties and businesses located within the boundaries of the CAC. 5.1.1 All tax revenues generated by the Property Tax'Increment and Sales Tax Increment shall be deposited by each Party in a separate account and shall not be intermingled with any other funds of that Party. 5.1.2 Sixty-five percent (65%) of the Property and Sales Tax Increment revenues generated in the CAC shall be retained by each Party for use as that Party sees fit. The remaining thirty-fix percent (35%) of such r revenues shall be transferred to the other Party within sixty (60) days of December 31 of each year. Annual statements showing calendar year total receipts of all such revenues from each of the Property Owners and retailers within the CAC shall be shared with the other Party within thirty (30) days of December 31 of each year, and the Parties agree that these statements are being disclosed solely for tax-related purposes and are therefore to remain confidential. 5.1.3 Any interest earned on deposits in the account described in Section 5.1.1 above shall remain the property of the Party that collected the revenue upon which the interest was earned and shall not be shared. 5.1.4 The share distribution shall begin on the Effective Date. Page 10 of 16 5.1.5 Any increase or decrease in the sales or property tax rates of either the City or the Town shall not affect the Property Tax Increment or the Sales `fax Increment due from the City or the.Town for the revenue sharing purposes of this Section. 5.1.6 In the event either the City or the Town creates one or more exemptions from sales taxes or property taxes, and such exemption(s) results in a reduction in the amount of revenue collected by such Party in the CAC, the Patty creating the exemption(s) shall include the exempted amount in its calculation of the amount of Property and Sales Tax Increment revenue that is due to the other Party under this Section as if the exemption(s) had not been created. 5.1.7 To the extent permitted by law; this sharing of revenues shall continue in perpetuity. 5.2. Cooperation in Attracting New Development. The Parties acknowledge and agree that they may need to cooperate in an effort to attract desirable development. Nothing herein shall preclude the Parties from entering into a subsequent agreement modifying the within Section and creating incentives for development in the CAC beneficial to both Parties. This shall include, but shall not be limited to, an agreement to reduce or eliminate the revenue sources identified in this Section. Any such agreement shall be in writing and set forth the terms under which a modification of this Section will occur. 5.3. Bonding. Nothing in this Agreement is intended to restrict either Party from being able to utilize its sixty-five percent (65%) share of the Property Tax Increment revenue and Sales and Use Tax Increment revenue as collateral or use in underwriting any bond, note, debenture, or other municipal borrowing. SECTION 6. INSPECTION Or RECORDS. The City and the Town shall each have the right to inspect and audit the tax revenue and fee collection records of the other pertaining to this Agreement. If any discrepancy is discovered, the auditing Patty shall provide written notice, including a copy of the audit report,to the other Party. Any amount due must be paid within thirty(30) days following the written notice or the Patties must engage in negotiations regarding the discrepancy. If a mutual agreement is not reached in sixty (60) days, the provisions of Section 8 below will apply. To the extent permitted by law, all tax and revenue collection information which is obtained by and pursuant to the inspection and audit provisions of this Agreement shall be deemed privileged, confidential and proprietary information and is being disclosed solely for tax-related purposes, including the calculation of revenue sharing payments pursuant to this Agreement. The Parties agree that they will not disclose any information to any person not having a . legitimate need-to-know for purposes authorized by this Agreement. Page 1 I of 16 The period of limitation for the recovery of any funds payable under this Agreement shall be three (3) years from the date on which the payment is due. Upon the expiration of this period of limitation and any action for collection or recovery of unpaid revenue sharing funds shall be barred. Each Party and its authorized agents may, upon thirty (30) days' advance written notice to the other, audit the other's records of those taxes and fees which are collected within the CAC and which are being shared pursuant to this Agreement. SECTION 7. ANNEXATION 7.1. Amendment of Growth Management Area Boundaries. In order to promote ongoing cooperation and collaboration between the Parties with respect to land use planning on both sides of Interstate 25, and to further the purposes contained in C.R.S. Section 31-12-102 of the Municipal Annexation Act of 1965, the Parties agree that Interstate 25 shall become the boundary between the Fort Collins Growth Management Area ("FCGMA") and the Windsor Growth Management Area ("WGMA"). Accordingly, after the Effective Date, neither Party shall annex, or accept any petition to annex, property within the other Party's growth management area as amended in accordance with this provision. Nor shall either Party annex, or accept any petition to annex, or include within its growth management area, the right-of-way for Interstate 25 adjacent to the other Party's growth management area without the prior written consent of the other Party. Any future amendments to the contiguous boundaries of the FCGMA and the WGMA shall be made only if agreed upon in writing by both Parties. 7.2. County Approval of GMA Boundary Amendments. Both Parties have heretofore entered into intergovernmental agreements with Larimer County that establish the growth management areas of the Parties, which agreements provide for, among other things, the way in which development_ applications for properties within the FCGMA and the WGMA will be processed by Larimer County. Accordingly, in order to ensure the cooperation of Larimer County in implementing the provisions of this Section, each Party shall, within one (1) year of the Effective Date, seek the approval of Larimer County to amend its agreement with Larimer County so as to reflect the amendments to the FCGMA and WGMA required hereunder. However, the failure of Larimer County to approve either or both such amendments shall not affect the obligation of the Parties to refrain from annexing territory within the FCGMA, the WGMA or the right-of-way for Interstate 25 as required in Section 7.1 above. 7.3. Effect on Prior Annexation Agreements. The provisions of this Section shall supersede and take precedence over any conflicting provisions contained in those certain agreements between the Parties entitled "Intergovernmental Agreement (Regarding_ _ Annexations East of Interstate Highway 25)" and "Intergovernmental Agreement (Regarding Annexations in the Fort Collins Cooperative Planning Area Adjacent to Fossil Creek Reservoir), both of which are dated June 28, 1999. Page 12 of 16 SECTION 8. MEDIATION/ARBITRATION 8.1. Enforceability of Agreement. The parties acknowledge that agreements between municipalities for the purposes set forth herein are mutually binding and enforceable. The parties likewise acknowledge that the unique nature of agreements between municipalities often require equally unique remedies to ensure compliance with the provisions of such agreements while preserving the obligations of the parties to one and other and promoting the continued existence and effectiveness of such agreements. It is the intent of the parties to this Agreement to provide enforcement remedies through a combination of alternative dispute methodologies including mediation and binding arbitration, and thereby eliminate the necessity of judicial enforcement of this Agreement. Nothing herein shall be deemed to preclude either party from seekingjudicial enforcement of any mediation agreement reached between the parties or binding arbitration order entered as a result of the alternate dispute methodologies set forth herein. 8.2. Mediation/Arbitration Process in General. Should either party fail to comply with the provisions of this Agreement, the other party, after providing written notification to the non-complying party, and upon the failure of the non-complying party to achieve compliance within forty five (45) days after said notice, the issue of non-compliance shall be submitted to mediation and thereafter, assuming no resolution has been reached through the mediation process, shall be submitted to binding arbitration. The mediation and binding arbitration processes shall be in accordance with the provisions hereinafter set forth. These mediation and arbitration provisions shall be in addition to questions of non-compliance as aforesaid, apply to all disagreements or failure of the parties to reach agreement as may be required by the terms of this Agreement. This shall include, but shall not be limited to, the creation of joint land use designs and standards, approval or rejection of Development Proposals, and disputed matters concerning shared revenues. 8.3. Sharing of Costs. All costs of the mediation/binding arbitration process shall be divided equally between the Parties. 8.4. Mediation Process. The dispute resolution process shall commence with the appointment of a mediator who shall be experienced in matters of local government and the legal obligations of local government entities. In the event the parties are unable to agree upon a mediator within fifteen (15) days of the commencement of the process, each party shall within five (5) days appoint an independent third party, and the third parties so appointed shall select a mediator within fifteen (15) days of their appointment. Mediation shall be completed no later than sixty (60) days after a mediator is selected by the parties or by the independent third parties. The procedures and methodology for mediation shall be determined by the mediator, but shall be in compliance with applicable law. 8.5. Binding Arbitration Process. In the event the parties are unable to reach agreement through the mediation process, the matter in dispute shall be submitted to binding arbitration. The parties agree that the order resulting from the arbitration process shall be deemed a final and conclusive resolution of the matter in dispute. The parties shall agree on the appointment of an arbitrator who shall be experienced in matters of Page 13 of 16 local government and the legal obligations of local government entities. It is understood and agreed that the parties may agree upon the appointment of that person who conducted the mediation portion of this process as the arbitrator, but are not bound to do so. In the event the parties are unable to agree upon an arbitrator within fifteen (15) days, each party will appoint an independent third party, and the third parties so appointed shall select a mediator within fifteen (15) days of their appointment. Arbitration shall be completed no later than ninety (90) days after an arbitrator is selected by the parties or by the independent third parties. The procedures and methodology for binding arbitration shall be determined by the arbitrator, but shall be in compliance with applicable law. SECTION 9. CONTINGENT ON APPROPRIATIONS The obligations of the City and Town do not constitute an indebtedness of the City or Town within the meaning of any constitutional or statutory limitation or provision. The obligations of the City and Town for payment of the Sales "fax Increment under this Agreement shall be from year to year only and shall not constitute a mandatory payment obligation of the City or Town in any fiscal year beyond the present fiscal year. This Agreement shall not directly or indirectly obligate the City or Town to make any payments of Sales Tax Increment beyond those appropriated for any fiscal year in which this Agreement shall be in effect. The City and Town Manager (or any other officer or employee at the time charged with the responsibility of formulating budget proposals) is hereby directed to include in the budget proposals and appropriation ordinances submitted to the City Council and the Town Board, in each year prior to expiration of this Agreement, amounts sufficient to meet its obligations hereunder, but only if it shall have received such amounts in the form of Sales Tax Increment, it being the intent, however, that the decision as to whether to appropriate such amounts shall be at the discretion of the City Council and Town Board. SECTION 10. MISCELLANEOUS 10.1. Amendment. This Agreement is the entire and only agreement between the Parties regarding the sharing of(1) costs for the Project; and (2) net new tax revenues and PIF generated with the CAC boundaries. There are no promises, terms, conditions, or other obligations other than those contained in this Agreement. This Agreement may be amended only in writing signed by the Parties. 10.2. Severability. Except as otherwise provided in this Agreement, if any part, term, or provision of this Agreement is held by the courts to be illegal or otherwise unenforceable, such illegality or unenforceability will not affect the validity of any other part, term, or provision of this Agreement and the rights of the Parties will be construed as if that part, term, or provision was never part of this Agreement. 10.3. Colorado Law. This Agreement is made and delivered with the State of Colorado and the laws of the State of Colorado will govern its interpretation, validity, and enforceability. Page 14 of 16 10.4. Jurisdiction of Courts. Personal jurisdiction and venue for any civil action commenced by any of the Parties to this Agreement for actions arising out of or relating to this Agreement will be the District Court of Larimer County, Colorado. 10.5. Representatives and Notice. Any notice or communication required or permitted under the terms of this Agreement will be in writing and may be given to the Parties or their respective legal counsel by (a) hand delivery; (b) deemed delivered three business days after being deposited in the United States mail, with adequate postage prepaid, and sent via registered or certificd mail with return receipt requested; or(c) deemed delivered one business day after being deposited with an overnight courier service of national reputation have a delivery area of Northern Colorado, with the delivery charges prepaid. The representatives will be: If to the City: City Manager 300 LaPorte Avenue PO Box 580 Fort Collins, CO 80524 With a copy to City Attorney 300 LaPorte Avenue PO Box 580 Fort Collins, CO 80524 If to the Town: Town Manager Windsor Town Hall 301 Walnut Street Windsor, CO 80550 With a copy to Town Attorney c/o Town Manager Windsor Town Hall 301 Walnut Street Windsor, CO 80550 10.6. Good Faith. In the performance of this Agreement or in considering any requested approval, acceptance, or extension of time, the Parties agree that each will act in good faith and will not act unreasonably, arbitrarily, capriciously, or unreasonably withhold, condition or delay any approval, acceptance or extension of time required or requested pursuant to this Agreement. 10.7. Authorization. The signatories to this Agreement affirm and warrant that they are fully authorized to enter into and execute this Agreement, and all necessary action, notices, meetings, and hearings pursuant to any law required to authorize their execution of this Agreement have been made. Page 15 of 16 10.8. Assignment. Neither this Agreement nor the City or Towns' rights, obligations or duties may be assigned or transferred in whole or in part by either Party without the prior written consent of the other Party. 10.9. Execution in Counterparts. This Agreement may be executed in multiple counterparts, each of which will be deemed an original and all of which taken together will constitute one and the same agreement. 10.10. No Third Party Beneficiary. It is expressly understood and agreed that the enforcement of the terms and conditions of this Agreement, and all rights of action relating to such enforcement, are strictly reserved to the Parties and nothing in this Agreement shall give or allow any claim or right or cause of action whatsoever by any other person not included in this Agreement. It is the express intention of the Parties that no person and/or entity, other than the undersigned Parties, receiving services or benefits under this Agreement shall be deemed any more than an incidental beneficiary only. 10.1 1. Recordation of Agreement. The City shall record a copy of this Agreement in the office of the Clerk and Recorder of Larimer County, Colorado. 10.12. Execution of Other Documents. The Parties agree to execute any additional documents and to take any additional actions necessary to carry out the terms of this Agreement. CITY O ORT COLLINS , irov � a >ibj A0' Mayor ATTEST: �� OOLLy . City Clerk vt P TOWN OF WINDSOR, co O� ..ter ayor EST: <b-' , ''��•�,. Town Clerl Page 16 of 16 ����� I �\;ate ''•�">���I�' , S t��4 FtT r/i d `,'r 1 \� fJf i r.. All ,y✓ � , t' ' fy,�LC ' ,�Q' / �\� X!�(I+.Gy.e�1,r1�� ,1Z 1 rr.'a i r i .' + I{r, , { ° y , S�(i I ��• c - -fs :. ✓ pa r: x, as,.d r '`tr tt F, j. �'1r t ` ti tt p 1'�I tl r Hf id.J11'.s r,a vt crx 9 {nY It � r 1 -' l 1 1�r� 1F✓r ( 1w2y _ 1 iy � t�l r!T Ia S EY�• \ 1 : ram.? 2 5 .t 1 f 1 1 ! , ,V� rq ij1 g y3r,$x',er�Y t Er'a.1 �� 1 y, l� r 1.1 4 1 t' r ��.. " �.�._•1V I. . + r xt itl'Itcf3�l���'� r 1 t . III ; •� ri ��'j ..� �;{>`J ✓ r f �rli rids`ydt A r n� '1 t Nc V ✓ i..,l J r 1 �1't ,y 1 °, j„ r) ° r r y r{', It, ' a F ! was tla�lr yf�� +�i7 � ! J, tt. � 1(r+ ��.'1 �•�1 ���~' iG _. 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L`s �.�i/:,_._.:_�. _ �,11�•.< _ 5�..�„ ` ' t ../d�. ,-- :,,;, ;I'a'N""ti'7l--ar. -Et5irfCollins Exhibit B Intergovernmental Agreement- Pertaining to the Development of the Interstate 1-25/Colorado Highway 392 Interchange Permitted Uses in the Corridor Activity Center Land Use Table Lodging Retail Store Multi-Family Mixed-Use Mixed Used Residential Offices/Financial Retail EstablishmenUBig Box Small Scale Rec./Events Center Standard Restaurant Personal/Business Service Shops Health Club Schools-PrivateNocational Colleges Drive Thru Restaurants Fast Food Restaurants Grocery/Supermarket Medical Center/Clinics Entertainment Facilities[Theaters Tele-Communication Equipment, excluding freestanding towers Cultural Venues Fuel Sales Convenience Stores Hospital Long Term Care Facilities Adult Day Care Centers Unlimited Indoor Recreation December 13,2010 Land Use Table RESOLUTION 2011-041 OF THE COUNCIL OF THE CITY OF FORT COLLINS FURTHER EXTENDING THE DEADLINE FOR THE CITY OF FORT COLLINS AND THE TOWN OF WINDSOR TO TAKE CERTAIN ACTIONS REQUIRED BY THE PARTIES' INTERGOVERNMENTAL AGREEMENT PERTAINING TO THE DEVELOPMENT OF THE INTERSTATE 25/STATE HIGHWAY 392 INTERCHANGE WHEREAS, on December 21, 2010, the City Council adopted Resolution 2010-077 authorizing the Mayor to execute an intergovernmental agreement (the "IGA") with the Town of Windsor ("Windsor") related to the reconstruction of the Interstate 25/State Highway 392 Interchange (the "Interchange"); and WHEREAS,on December 13,2010,the IGA was also approved by the Windsor Town Board through the adoption of Resolution 2010-71; and WHEREAS, the IGA was finalized and fully executed and dated as of January 3, 2011; and WHEREAS, on March 15, 2011,the IGA was amended by the agreement of the parties (the "Amended IGA")to allow additional time for staff to finalize their recommendations regarding the boundaries of the Corridor Activity Center ("CAC") around the Interchange, and to develop a list of improvements and services to funded by retailers within the CAC through a public improvement fee that will be charged upon the sale of goods or services; and WHEREAS, the City and Windsor have adopted mutually acceptable design standards for the CAC; and WHEREAS,the Amended IGA establishes a deadline of June 7,2011 for the staff of the City and Windsor to bring forward any recommended reconfiguration of the boundaries of the CAC,and for the governing bodies to enact a Development Impact Fee to be imposed on property owners within the CAC and approve a list of improvements and services to be funded by retailers within the CAC through a Public Improvement Fee that will be charged upon the sale of their goods or services; and WHEREAS, the staff of both municipalities have recommended that the June 7, 2011, deadline be further extended in order to allow additional time to complete their studies and public outreach and make their recommendations. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS that the deadline for all actions to be taken under the Amended IGA by June 7, 2011, is hereby extended to September 20, 2011. Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 17th day of May A.D. 2011. Mayor ATTEST: City Clerk