HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 10/18/2016 - CONSIDERATION AND APPROVAL OF THE MINUTES OF THE SAgenda Item 1
Item # 1 Page 1
AGENDA ITEM SUMMARY October 18, 2016
City Council
STAFF
Wanda Winkelmann, City Clerk
SUBJECT
Consideration and Approval of the Minutes of the September 27, 2016 Adjourned Council Meeting.
EXECUTIVE SUMMARY
The purpose of this item is to approve the minutes from the September 27, 2016 Adjourned Council meeting.
ATTACHMENTS
1. September 27, 2016 (PDF)
City of Fort Collins Page 109
September 27, 2016
COUNCIL OF THE CITY OF FORT COLLINS, COLORADO
Council-Manager Form of Government
Adjourned Meeting – 6:00 PM
CALL MEETING TO ORDER
ROLL CALL
PRESENT: Martinez, Stephens, Overbeck, Campana, Troxell, Cunniff, Horak
Staff present: Atteberry, Daggett, Winkelmann
1. Public Hearing and Resolution 2016-075 Approving the Block 23 Metropolitan District Nos. 1
and 2 Service Plan. (Adopted)
The purpose of this item is to consider the Consolidated Service Plan for Block 23 Metropolitan
District Nos. 1 and 2. The intent of the proposed Block 23 Metropolitan District Nos. 1 and 2 (jointly,
the Districts) is to eventually provide public improvements (primarily a parking structure) that
facilitates and makes possible a mixed-use project on Block 23 that is in keeping with planning and
community objectives for a development in downtown Fort Collins. The primary purpose of the
Districts is to finance, construct, acquire, own, operate, and maintain those public improvements.
This action establishes a preliminary framework service plan to allow the Districts to be created, but
not to begin financing and construction of the proposed public improvements. This approach
provides limited authorization that allows the proposed Districts to move forward with a
November election, while preserving and calling for future review and consideration by the
City Council of an amended service plan.
Patrick Rowe, Redevelopment Program Coordinator, stated Block 23 is located north of 281
North College. The proposal for the property is for a 7-story mixed-use project, which would
include retail, office and residential uses, as well as a parking structure. A metro district is a
quasi-governmental entity that has the authority to levy property taxes, issue debt and charge for
services. Metro districts are commonly used in development as a public financing tool to aid in
financing gaps and alleviate development constraints. The organization of a metro district is
conducted within district court and is started via a petition for organization. An organization and
TABOR election will then be conducted. The purpose of the Block 23 Metro District is to
address site constraints and provide enhanced development outcomes consistent with City plans.
The initial service plan received by the City included proposed improvements such as potable
water, sewer storm systems, streets, parking structure and park and trail improvements, with an
initial cost estimate of approximately $15 million, $10 million of which is for the parking
structure. The project is slated to be 85.5% commercial and 14.5% residential, which exceeds
the City's preference of no more than 10% residential.
Josh Birks, Economic Health Director, discussed the initial service plan received by the applicant
and noted staff is proposing a limited, or shell service plan primarily due to the amount of time
staff had to review the full application, and due to some of the open questions. Moving forward
with a limited service plan allows for more time to address the parking issue and to complete a
more thorough financial and engineering review. The limited service plan would allow the
applicant to move forward with an organizational election to be held at a TABOR-qualified
election this fall. This limited plan does not allow for the metro district to levy any tax, impose
any fee, incur any debt, or build any public improvements at this time.
September 27, 2016
City of Fort Collins Page 110
Eric Sutherland discussed the placement of a metro district inside a TIF area and stated half of
any property tax levied by the metro district would go to the DDA.
Councilmember Overbeck asked about the overlap between the URA and the metro district.
Birks replied staff is aware that 50% of any collected property tax would be remitted to the
DDA. The City and the DDA could consider participating in a project that would take place on
Block 23, particularly to achieve public parking.
Councilmember Overbeck asked how many residential units are proposed. Birks replied about
180 units are currently planned; however, the project is still in a conceptual design phase.
Councilmember Overbeck asked about the parking lease price and duration. Birks replied those
items have not yet been determined.
Councilmember Overbeck asked how boards and commissions will interact with metro districts.
Birks replied boards and commissions have not historically had a role interfacing with the metro
district boards themselves; however, it will be recommended that appropriate boards and
commissions are addressed as part of the service plan amendment.
Councilmember Overbeck discussed the importance of including input from several boards and
commissions so as to keep metro districts from creating disconnected enclaves within the city.
Birks noted metro districts must comply with all applicable Land Use Code and City Code
standards for any type of development, including cell towers.
Councilmember Overbeck asked if metro districts set their own policies with respect to mosquito
control. Birks replied the service plan dictates what a metro district can and cannot do; Council
ultimately approves the service plan which guides the metro district.
Councilmember Overbeck asked how affordable housing will be part of the metro district. Birks
replied the metro district would be subject to the same requirements as any other development in
the city. There is currently no affordable housing requirement; however, that could possibly be
stipulated in the service plan.
Councilmember Cunniff asked if removing this area from the DDA has been contemplated.
Birks replied it has not been contemplated but could be examined. Councilmember Cunniff
encouraged the consideration of that possibility as it may help better achieve the purposes of the
district.
Councilmember Cunniff asked about the difference in assessment rate between the residential
and commercial uses. Birks replied commercial uses are assessed at close to four times as much
as residential uses and the City's policy requires a financial plan as part of the full service plan.
Councilmember Cunniff asked who are eligible electors for the election. Birks replied the land
holders are the eligible electors. John Duval, Deputy City Attorney, replied the property owners
are the only eligible voters at this time; however, once residents move in, they would be eligible
to vote in future elections.
Councilmember Cunniff asked about the form of government for metro districts. Duval replied
this limited service plan form of government gives the metro district the ability to exist and move
forward with an election to form the district; however, no taxes can be imposed or debt issued
September 27, 2016
City of Fort Collins Page 111
until the amended service plan is approved by Council. The governing board would be elected
by the eligible electors of the district.
Councilmember Campana stated this could be a creative way of accomplishing goals of the city.
Mayor Pro Tem Horak made a motion, seconded by Councilmember Martinez, to adopt
Resolution 2016-075.
Councilmember Overbeck stated he would support the motion but encouraged consideration of
the metro district supporting the transportation system, appropriately handling waste and
recycling, and maintaining the City's gold standards in terms of neighborhood beauty.
Mayor Pro Tem Horak stated he would support the motion and suggested the examination of
metro district policy objectives and boards and commissions engagement.
Councilmember Overbeck suggested the formation of a metro district committee.
RESULT: RESOLUTION 2016-075 ADOPTED [UNANIMOUS]
MOVER: Gerry Horak, District 6
SECONDER: Ray Martinez, District 2
AYES: Martinez, Stephens, Overbeck, Campana, Troxell, Cunniff, Horak
2. Public Hearing and Resolution 2016-076 Approving the Consolidated Service Plan for
Harmony I-25 Metropolitan District Nos. 1-3. (Adopted)
The purpose of this item is to consider the Consolidated Service Plan for Harmony I-25 Metropolitan
District Nos. 1-3. The intent of the proposed Harmony I-25 Metropolitan District Nos. 1-3
(collectively, the Districts) is to eventually provide public improvements that enable a 260-acre
coordinated development project that will feature residential, retail, office, warehouse/flex space, and
hotel components. The primary purpose of the Districts is to finance, construct, acquire, own,
operate, and maintain those public improvements. This action establishes a preliminary framework,
but limited, service plan to allow the Districts to be created, but not to begin financing and
constructing the proposed public improvements. This approach provides limited authorization
that allows the proposed Districts to move forward with a November election, while
preserving and calling for future review and consideration by the City Council of an amended
service plan.
Patrick Rowe, Redevelopment Program Coordinator, stated this is a multi-district plan for the
southwest corner of Harmony and I-25 which is currently a greenfield property, formerly a
gravel mining site. A variety of uses are planned for the 260-acre coordinated development,
including residential, office, warehouse and hotel components. The purpose of the metro district
is to address site constraints and to deliver an enhanced development outcome which is
consistent with City plans. The proposed land use mix between commercial and residential is
approximately 91.5% commercial and 8.5% residential.
Josh Birks, Economic Health Director, stated the item before Council is a consolidated, or shell,
service plan, as there is currently little specificity in terms of development proposals and a
concern that the conceptual plan does not necessarily align with the currently land use on the
southern portion of the property.
September 27, 2016
City of Fort Collins Page 112
Rowe stated this limited service plan does not allow for taxes or fees to be imposed, debt to be
incurred, or improvements to be built. The service plan amendment is required to be initiated
within three years.
Councilmember Cunniff asked why there appears to be some urgency in getting the TABOR
election completed in this two-year cycle as the next opportunity is within the three year period.
Birks replied the developer and applicant feel it is important to move forward under this
particular timeline.
Mayor Troxell requested one of the applicants address the question asked by Councilmember
Cunniff. Robert Rogers, White, Bear and Ankele, replied the applicant is attempting to achieve
some economies of scale by having both TABOR elections this fall. Additionally, an overall
development plan (ODP) has already been approved for the property and the applicant would
like the flexibility to move forward and push the ready pieces of the development forward. The
service plan has enough flexibility to allow for an initial amended service plan and subsequent
amended service plans as needed.
Councilmember Cunniff asked if the existing ODP is concentrated in any one of the three district
areas. Mr. Rogers replied it is entirely in District No. 1. He noted there are some significant
advantages to financing and coordinating the construction of public improvements if the entire
project can be organized at once.
Mayor Pro Tem Horak made a motion, seconded by Councilmember Martinez, to adopt
Resolution 2016-076.
Councilmember Cunniff stated he is not convinced a metro district is a necessary tool in this
case.
Councilmember Overbeck stated he would not support the motion.
Councilmember Martinez requested additional detail from Councilmember Overbeck.
Councilmember Overbeck stated the acreage is too high for his comfort level.
Councilmember Campana asked about any financial risk to the City in terms of metro districts.
Birks replied metro districts issue their own debt and collect their own taxes to fund that debt;
the City has no financial responsibility for that debt. The disadvantage, should a metro district
fail, is political in nature for the citizens who live within the metro district.
Councilmember Campana supported metro districts as a viable tool that do not expose the City to
financial risks.
Councilmember Overbeck stated he prefers a slower approach and questioned the political and
legal ramifications to the City of a metro district failure. Birks replied the bond holders only
have recourse against the revenue collected from the imposed mill levy; the City has no
responsibility for repaying that debt. Politically, the citizens could ask Council to intervene;
however, Council would only do what it is willing in the event of a failure. Typically, one of the
benefits to a phased approach is that the metro district does not take on all the debt early on;
therefore, the metro district is at a lower risk of over-extending itself. City Attorney Daggett
replied the one thing not spelled out at this stage, because of the preliminary status of the plan, is
that there are improvements that are constructed that, in some cases, can be turned over to the
September 27, 2016
City of Fort Collins Page 113
City for its ownership and operation. In other cases, the district maintains ownership and
operation of those improvements. As the amended service plan comes forward, questions
regarding improvements and potential City ownership will need to be answered and, depending
on the structure of the plan, there may be City-owned public improvements in the district area
that may be necessary for the continued occupation of the property and continued operation and
maintenance of those would be a question. Birks noted most greenfield development takes place
in the same manner.
Councilmember Campana noted the main aspects and details will be flushed out at a future time
with the amended service plan.
Councilmember Overbeck stated the affordable housing outcomes desired by the City did not
come to fruition as part of the Foothills Mall metro district.
Councilmember Cunniff agreed there is no financial risk to the City, and agreed metro districts
can be a useful tool; however, he stated he is not convinced it is a necessary tool in this case.
Mayor Troxell stated he would support the motion.
RESULT: RESOLUTION 2016-076 ADOPTED [5 TO 2]
MOVER: Gerry Horak, District 6
SECONDER: Ray Martinez, District 2
AYES: Martinez, Stephens, Campana, Troxell, Horak
NAYS: Overbeck, Cunniff
OTHER BUSINESS
Councilmember Cunniff stated the Finance Committee is an appropriate body to discuss details
regarding the service plans moving forward rather than creating another committee.
Councilmember Overbeck commended the work of the Mall redevelopment committee.
Councilmember Campana suggested the creation of a matrix comparing the metro districts at
Foothills Mall, the Harmony Tech Park, and the two created this evening.
ADJOURNMENT
The meeting adjourned at 6:55 PM.
______________________________
Mayor
ATTEST:
________________________________
City Clerk