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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 09/15/2015 - RESOLUTION 2015-084 SUBMITTING A SUBSTANTIAL MODIFAgenda Item 15 Item # 15 Page 1 AGENDA ITEM SUMMARY September 15, 2015 City Council STAFF Patrick Rowe, Real Estate Specialist III Josh Birks, Economic Health Director Jeff Mihelich, Deputy City Manager SUBJECT Resolution 2015-084 Submitting a Substantial Modification of the Midtown Urban Renewal Plan to the City's Planning and Zoning Board and to the Poudre School District. EXECUTIVE SUMMARY The purpose of this item is for City Council to consider adopting a resolution submitting two modifications of the Midtown Urban Renewal Plan (the “Midtown Plan”) to the Planning and Zoning Board (the “P&Z Board”) to review at a future meeting to determine whether these modifications are in conformity with City Plan. It also submits the modifications to the Poudre School District to review in an advisory capacity. This Resolution follows the action taken by the Urban Renewal Authority Board (the “URA Board”) at its September 8, 2015 meeting. One modification would remove the territory in the Midtown Plan area that is currently not in either of the Midtown Plan’s two approved tax increment financing district, Prospect South and Foothills Mall (other than the area preserved in the plan to connect the two tax increment financing districts). The other modification would amend wording in the Midtown Plan to clarify that the Plan identifies and describes only one urban renewal project. Adoption of the Resolution will continue the process of modifying the Midtown Plan, which will require future action by the Council. STAFF RECOMMENDATION Staff recommends adoption of the Resolution. BACKGROUND / DISCUSSION In May 2015, the Colorado General Assembly passed House Bill 2015-1348 (the “URA Reform Bill”). The URA Reform Bill will affect the City’s Urban Renewal Authority (the “URA”) in several significant ways. Chief among them is that on and after January 1, 2016, the City will be required to attempt to negotiate an agreement with all affected taxing entities, like Larimer County, on the issue of how property tax increment generated under any new City urban renewal plan or the modification of an existing plan will be allocated and spent under the new plan or modification. If the City and other taxing entities cannot reach such an agreement, the tax-allocation issue will be decided through “mediation” by the “mediator.” There is concern that the City’s two existing urban renewal plans, the North College and Midtown Urban Renewal Plans, and the urban renewal projects ongoing under them, may be negatively impacted by the URA Reform Bill. In an effort to avoid and minimize this concern, staff recommends that the Council take the following actions before January 1, 2016: (1) amend the Midtown Plan to remove all the territory in the Midtown Plan area that is not currently in the Prospect South or the Foothills Mall tax increment financing (“TIF”) districts and to clarify that the Midtown Plan authorizes only one urban renewal project (the “Midtown Modification”); and (2) amend the North College Urban Renewal Plan to clarify that it too only authorizes one urban renewal project. Agenda Item 15 Item # 15 Page 2 This Council Resolution continues the Midtown Modification process. Since the Midtown Modification is arguably a substantial modification of the Midtown Plan, the urban renewal statutes require that this process be, to the extent applicable, the same process that is required for the approval of a new urban renewal plan. Therefore, this Resolution submits the Midtown Modification to the P&Z Board for consideration and conformance with the City’s general plan of development, which is City Plan, and to the Poudre School District to review the Midtown Modification in an advisory capacity. The Midtown Modification is likely a substantial modification because it will remove a substantial amount of land from the Midtown Plan area, which area is currently 658.5 acres in size and shown on the map in Attachment 1 (the “Plan Area”). The land to be removed from the Plan Area would be those properties not currently located in either of the two tax increment financing districts established in the Midtown Plan, these being the Prospect South Tax Increment District and the Foothills Mall Tax Increment District (jointly, the “TIF Districts”). However, certain portions of South College Avenue currently not located in the TIF districts will remain in the Plan Area to connect the two TIF Districts. The Midtown Modification would exclude approximately 490.7 acres (or approximately 75 percent) of the land from the Plan Area as depicted on the map in Attachment 2 (the “Excluded Area”), thereby resulting in the new boundaries for the remaining Midtown Plan area consisting of approximately 167.9 acres of land, which boundaries are also depicted in Attachment 2 (the “New Plan Area”). The primary rationale for this Midtown Modification is to protect the TIF Districts and their existing and future undertakings and activities that are part of the urban renewal project authorized in the Midtown Plan, like the Foothills Mall redevelopment, from some of the potential adverse effects of the URA Reform Bill. For instance, if the properties in the Excluded Area are not removed from the Plan Area and any future urban renewal undertakings or activities occur on them, an affected taxing entity might argue that such undertakings or activities have triggered the URA Reform Bill requiring the City and the URA to negotiate with that taxing entity a tax allocation agreement for not only the new undertakings or activities, but also with respect to the existing undertakings and activities in the TIF Districts. By removing the Excluded Area from the Plan Area now, this should eliminate this argument. Then, if and when the City decides to pursue an urban renewal plan and project for any property in the Excluded Area, it can do so without concern that such action will adversely affect the existing and future urban renewal undertakings and activities in the Midtown TIF Districts in light of the URA Reform Bill. This process to modify the Midtown Plan involves the following steps: 1. URA resolution proposing the Midtown Modification - September 8, 2015 (OCCURRED - the URA adopted Resolution No. 077 on September 8, 2015); 2. Council resolution submitting the Midtown Modification to the Planning and Zoning Board to review for conformity with City Plan and to the Poudre School District - September 15, 2015 (this Resolution); 3. Planning and Zoning Board hearing to consider the Midtown Modification and adoption of a resolution with its recommendation to Council concerning the Modification’s conformance with City Plan - October 8, 2015; 4. Council resolution scheduling a public hearing on the Midtown Modification - October 20, 2015; and 5. Council public hearing to consider a resolution approving the Midtown Modification - December 1, 2015. This Resolution continues the above process by submitting the Midtown Modification to the P&Z Board and the Poudre School District. As specified above, following the P&Z Board review, the City Council will need to take additional steps to move forward the Midtown Modification culminating in a Council public hearing on December 1, 2015. CITY FINANCIAL IMPACTS This Resolution has no direct financial impact on the City. BOARD / COMMISSION RECOMMENDATION The URA Board passed Resolution No. 077 on September 8, 2015, proposing the Midtown Modification. A copy of the resolution is attached (Attachment 3). Agenda Item 15 Item # 15 Page 3 PUBLIC OUTREACH Following the URA Board meeting on September 8, 2015, the City began formal public outreach on the Midtown Modification as well as others recommended changes to the URA operations which will follow a different process. The outreach includes letter correspondence to the property owners and taxing entities within the Midtown Plan, as well as, discussion with key stakeholder (e.g., South Fort Collins Business Association). For addition detail on the public outreach, please refer to the attached public engagement plan (Attachment 4). ATTACHMENTS 1. Midtown Plan Area Map - Existing (PDF) 2. Midtown Plan Area Map - Proposed (PDF) 3. URA Resolution No. 077 (PDF) 4. Midtown Modification - Public Engagment Plan (PDF) ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! SHIELDS COLLEGE DRAKE PROSPECT LEMAY HORSETOOTH MASON HARMONY BOARDWALK JOHN F KENNEDY LANDINGS REMINGTON TROUTMAN LEMAY SWALLOW STOVER LAKE CENTRE COLUMBIA OAKRIDGE WHEATON WABASH MEADOWLARK TROUTMAN COLONY SENECA BOARDWALK HINSDALE STANFORD BROOKWOOD STUART MANHATTAN KEENLAND PITKIN WHALERS CENTENNIAL PARKWOOD WELCH RICHMOND RESEARCH STARFLOWER MONROE CENTER MATHEWS TICONDEROGA HIGHCASTLE WINDMILL SPRING PARK ATTACHMENT 2 ATTACHMENT 3 !!!!!! !!!!!! !!!!!! !!!!!! !!!!!! !!!!!! !!!!!! !!!!!! !!!!!! !!!!!! !!!!!! !!!!!! SHIELDS COLLEGE DRAKE PROSPECT LEMAY HORSETOOTH MASON HARMONY BOARDWALK JOHN F KENNEDY LANDINGS REMINGTON TROUTMAN LEMAY SWALLOW STOVER LAKE CENTRE COLUMBIA OAKRIDGE WHEATON WABASH MEADOWLARK TROUTMAN COLONY SENECA BOARDWALK HINSDALE STANFORD BROOKWOOD STUART MANHATTAN KEENLAND PITKIN WHALERS CENTENNIAL PARKWOOD WELCH RICHMOND RESEARCH STARFLOWER MONROE CENTER MATHEWS TICONDEROGA HIGHCASTLE WINDMILL SPRING PARK # # # # # # # # # # # # # # # # # # # # # # ###### ###### ###### ###### ###### ###### ###### ###### ###### ###### ###### ###### ############# ############# ############# ############# ############# ############# ############# ############# ############# ############# ############# ############# SHIELDS COLLEGE DRAKE PROSPECT LEMAY HORSETOOTH MASON HARMONY BOARDWALK JOHN F KENNEDY LANDINGS TROUTMAN REMINGTON LEMAY PUBLIC ENGAGEMENT SUMMARY PROJECT TITLE: MIDTOWN URBAN RENEWAL PLAN MODIFICATION OVERALL PUBLIC INVOLVEMENT LEVEL: Inform & Consult BOTTOM LINE QUESTION: Should City Council modify the Midtown Urban Renewal Plan to provide protection to the existing Midtown TIF Districts and their existing and planned urban renewal project undertakings and activities (e.g., Foothills Mall redevelopment)? KEY STAKEHOLDERS: 1. Property owners, residents, and business owners in the Midtown Urban Renewal Plan Area 2. South Fort Collins Business Association 3. Affected Taxing Entities (e.g., Larimer County) TIMELINE: August 31, 2015 to December 1, 2015 Phase 1: Increase Awareness of Proposed Modification Timeframe: August 31, 2015 to October 8, 2015 Key Messages: 1. There are two existing tax increment financing (TIF) districts within the Midtown Plan Area – South Prospect and Foothills Mall 2. State legislature passed HB 2015-1348 (the “URA Reform Bill”) that affects the manner in which an Urban Renewal Authority (URA) can operate 3. The URA Reform Bill necessitated a change to the Midtown Plan Area to protect the existing and planned undertakings and activities within the existing Midtown TIF District 4. City remain committed to redevelopment along the community’s spine and the Midtown Plan Area plays a crucial role in that commitment 5. City desires to honor the changes of the URA Reform Bill and follow the process and procedure for future TIF districts in the Midtown area Tools and Techniques: 1. Required notice letter sent to property owners within the Midtown Plan Area 2. Meet with SFCBA to discuss proposed modification of plan 3. Inform affected taxing entities of the proposed change – either informally (meeting) or formally (letter) PHASE 2: Required Public Hearing Timeframe: October 9, 2015 to December 1, 2015 Key Messages: 1. Same as above Tools and Techniques: 1. Send formal notice to all residents, business owners, and property owners in the affected area 30 days prior to public hearing 2. Publish date of required public hearing with notice in the Coloradoan 30 days prior to the public hearing 3. Conduct a public hearing as required by statute ATTACHMENT 4 - 1 - RESOLUTION 2015-084 OF THE COUNCIL OF THE CITY OF FORT COLLINS SUBMITTING A SUBSTANTIAL MODIFICATION OF THE MIDTOWN URBAN RENEWAL PLAN TO THE CITY’S PLANNING AND ZONING BOARD AND TO THE POUDRE SCHOOL DISTRICT WHEREAS, on January 5, 1982, the Council of the City of Fort Collins ("Council") adopted Resolution 82-10 establishing the Fort Collins Urban Renewal Authority (the "Authority") and designating the Council to serve as the Authority’s Board of Commissioners (the “Authority Board”); and WHEREAS, on September 6, 2011, the City Council adopted Resolution 2011-081 approving the Midtown Urban Renewal Plan (the “Plan”) in accordance with the Colorado Urban Renewal Law, C.R.S. Sections 31-25-101 , et seq. (the "Act"); and WHEREAS, the Plan identifies and legally describes approximately 658.5 acres of land as being within the Plan’s boundaries as depicted on the map attached as Exhibit “A” (the “Plan Area”); and WHEREAS, the Plan also established a tax increment financing district within the Plan Area known as "Prospect South,” which district is depicted on Exhibit “A” (the “Prospect TIF District”); and WHEREAS, on May 7, 2013, the Council adopted Resolution 2013-043 in which the Council ratified and reaffirmed the Plan and amended the Plan (the “First Amended Plan”) to establish within the Plan Area a second tax increment financing district known as “Foothills Mall,” which district is depicted on Exhibit “A” (the “Mall TIF District”); and WHEREAS, the Prospect TIF District and the Mall TIF District shall be jointly referred to as the “TIF Districts;” and WHEREAS, on September 8, 2015, the Authority Board adopted Resolution No. 077 submitting to the Council for its future consideration a substantial modification of the First Amended Plan under the Act (the “Authority Resolution”); and WHEREAS, the substantial modification of the First Amended Plan proposed in the Authority Resolution would modify the First Amended Plan in two respects; and WHEREAS, the first modification would amend the wording of the First Amended Plan to clarify that the First Amended Plan identifies and authorizes only one urban renewal project (the “First Modification”); and WHEREAS, under C.R.S. Section 31-25-107(7) the First Modification is not a substantial modification of the First Amended Plan because it will not result in any substantial change in the land area, land use, design, building requirements, timing or procedure of the First Amended Plan; and - 2 - WHEREAS, the second modification would exclude from the Plan Area the approximately 490.7 acres of land that are currently not located in either of the TIF Districts, which excluded land is depicted on the attached Exhibit “B” (the “Excluded Area”), except that certain portions of South College not in the TIF Districts will remain in the Plan Area in order to connect the two TIF Districts as depicted on Exhibit “B” (the “Second Modification”); and WHEREAS, as a result of the Second Modification, the new area of the First Amended Plan will be reduced to approximately 167.8 acres of land, which area is depicted on Exhibit “B” (the “New Plan Area”); and WHEREAS, since the Second Modification results in a substantial change in the First Amended Plan’s land area, although it will be a decrease and not an increase in land area, under Section 31-25-107(7) the Second Modification is arguably a substantial modification of the First Amended Plan that is subject to the notice and hearing requirements in Section 31-25-107; and WHEREAS, if the First Modification and the Second Modification (jointly, the “Modification”) are together a substantial modification of the First Amended Plan, Section 31- 25-107(2) requires the Council to submit the Modification to the City’s Planning and Zoning Board prior to the Council approving the Modification so that the Planning and Zoning Board can review the Modification and provide its written recommendation to the Council on the sole question of whether the Modification is in conformity with the City’s general plan for development of the City as a whole, which is the City’s comprehensive plan titled “City Plan – Fort Collins” and dated February 15, 2011 (“City Plan”); and WHEREAS, since the New Plan Area includes within it multiple-family residences, Section 31-25-107(9)(d) arguably permits the Poudre School District (the “School District”) to participate in an advisory capacity concerning the proposed Modification. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. The City Manager is hereby directed to submit the Modification to the City’s Planning and Zoning Board in accordance with C.R.S. Section 31-25-107(2) by providing the Planning and Zoning Board with this Resolution, the Authority Resolution, and a written staff report addressing the Modification’s conformity with City Plan. The Modification is to be submitted to the Planning and Zoning Board in time for it to so consider the Modification at its October 8, 2015, regular meeting. In deciding and making its recommendation to Council under Section 31-25-107(2), the Planning and Zoning Board is to consider the sole question of whether the Modification is in conformity with City Plan. Section 2. The City Manager is hereby directed to promptly submit the Modification to the School District by providing it with this Resolution and the Authority Resolution so that the School District can, if it desires to do so, review and comment on the Modification in its advisory capacity as permitted by C.R.S. Section 31-25-107(9)(d). - 3 - Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 15th day of September, A.D. 2015. _________________________________ Mayor ATTEST: _____________________________ City Clerk !!!!!! !!!!!! !!!!!! !!!!!! !!!!!! !!!!!! !!!!!! !!!!!! !!!!!! !!!!!! !!!!!! !!!!!! SHIELDS COLLEGE DRAKE PROSPECT LEMAY HORSETOOTH MASON HARMONY BOARDWALK JOHN F KENNEDY LANDINGS REMINGTON TROUTMAN LEMAY SWALLOW STOVER LAKE CENTRE COLUMBIA OAKRIDGE WHEATON WABASH MEADOWLARK TROUTMAN COLONY SENECA BOARDWALK HINSDALE STANFORD BROOKWOOD STUART MANHATTAN KEENLAND PITKIN WHALERS CENTENNIAL PARKWOOD WELCH RICHMOND RESEARCH STARFLOWER MONROE CENTER MATHEWS TICONDEROGA HIGHCASTLE WINDMILL SPRING PARK # # # # # # # # # # # # # # # # # # # # # # ###### ###### ###### ###### ###### ###### ###### ###### ###### ###### ###### ###### ############# ############# ############# ############# ############# ############# ############# ############# ############# ############# ############# ############# SHIELDS COLLEGE DRAKE PROSPECT LEMAY HORSETOOTH MASON HARMONY BOARDWALK JOHN F KENNEDY LANDINGS TROUTMAN REMINGTON LEMAY STOVER SWALLOW LAKE STUART CENTRE COLUMBIA OAKRIDGE WHEATON WABASH MEADOWLARK TROUTMAN COLONY HINSDALE STANFORD BOARDWALK BROOKWOOD MANHATTAN WHALERS CENTENNIAL PARKWOOD WELCH RICHMOND RESEARCH STARFLOWER MONROE CENTER MATHEWS TICONDEROGA WINDMILL SPRING PARK STOVER STOVER STUART PARKWOOD Streets Midtown Urban Renewal Plan Area (the "Plan Area") Foothills Mall I Legend #### ####New Plan Area Excluded Area Fort Collins Urban Renewal Authority Proposed Plan Area Boundry - Midtown EXHIBIT B Packet Pg. 28 Attachment2: Exhibit B (3540 : URA-Modify Midtown Plan Area RESO) STOVER STUART STOVER Streets Midtown Urban Renewal Plan Area (the "Plan Area") Foothills Mall I Legend Foothills Mall Boundary !!!! !!!!Prospect South Boundary Fort Collins Urban Renewal Authority Existing Plan Area Boundry - Midtown EXHIBIT A STOVER SWALLOW LAKE STUART CENTRE COLUMBIA OAKRIDGE WHEATON WABASH MEADOWLARK TROUTMAN COLONY HINSDALE STANFORD BOARDWALK BROOKWOOD MANHATTAN WHALERS CENTENNIAL PARKWOOD WELCH RICHMOND RESEARCH STARFLOWER MONROE CENTER MATHEWS TICONDEROGA WINDMILL SPRING PARK STOVER STOVER STUART PARKWOOD Streets Midtown Urban Renewal Plan Area (the "Plan Area") Foothills Mall I Legend #### ####New Plan Area Excluded Area Fort Collins Urban Renewal Authority Proposed Plan Area Boundry - Midtown EXHIBIT B Packet Pg. 28 Attachment2: Exhibit B (3540 : URA-Modify Midtown Plan Area RESO) STOVER STUART STOVER Streets Midtown Urban Renewal Plan Area (the "Plan Area") Foothills Mall I Legend Foothills Mall Boundary !!!! !!!!Prospect South Boundary Fort Collins Urban Renewal Authority Existing Plan Area Boundry - Midtown EXHIBIT A STOVER STUART STOVER Streets Midtown Urban Renewal Plan Area (the "Plan Area") Foothills Mall I Legend Foothills Mall Boundary ! ! ! ! ! ! ! ! ! ! ! ! Prospect South Boundary Existing Fort Collins Plan Urban Area Boundary Renewal Authority - Midtown ATTACHMENT 1