HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 12/15/2015 - RESOLUTION 2015-117 EXTENDING BY ONE YEAR THE WORKAgenda Item 22
Item # 22 Page 1
AGENDA ITEM SUMMARY December 15, 2015
City Council
STAFF
Mike Beckstead, Chief Financial Officer
SUBJECT
Resolution 2015-117 Extending by One Year the Work-Completion Deadline Established in Resolution 2014-
005 Regarding Cooperation and a Partnership with Larimer County on the Use of Tax Increment Financing.
EXECUTIVE SUMMARY
The purpose of this item is to extend City staff’s work-completion deadline in Resolution 2014-103 from
December 15, 2015, to December 15, 2016. Resolution 2013-045 was originally adopted by City Council on
May 7, 2013. Section 4 of that Resolution directs staff to work with Larimer County and other northern
Colorado municipalities and affected property tax levying entities to develop an appropriate fiscal impact
analysis model for evaluating financial impacts associated with the formation of tax increment financing
districts and the use of tax increment financing. Resolution 2014-005 extended the work-completion deadline
set in Resolution 2013-045 from December 15, 2013, to December 15, 2014, and Resolution 2014-103
extended the work-completion deadline to December 15, 2015.
A team made up of representatives from various municipalities and tax levying entities within the County
contracted with Economic Planning & Systems (EPS) to develop a “fiscal impact analysis model”. Work has
taken longer than anticipated and while a new quantitative direct cost impact model and a qualitative indirect
impact factors model have been developed, additional work is required to finalize the assumptions and gain
agreement across the team. The current timeline anticipates completion summer/fall of 2016. As such, an
extension to December 15, 2016 is requested for the work-completion deadline established in Resolution
2014-103.
STAFF RECOMMENDATION
Staff recommends adoption of the Resolution.
BACKGROUND / DISCUSSION
During discussions between the City and Larimer County regarding the redevelopment of the Foothills Mall, it
became clear the two parties were not aligned concerning the fiscal impacts a project like the Mall would have
on the County.
While the City had properly followed all requirements of analysis, notification and discussions with the County,
the County believed the Mall and other tax increment financing (TIF) projects redirects County revenue to
support these projects to the detriment of the County and other tax levying entities that rely on property tax as
their primary source of funding.
In light of the significant residential portion of the Foothills Mall redevelopment project- the project is zoned for
800 rental residential units and the current redevelopment plans call for 446 units to be built - Section 2 & 3 of
Resolution 2014-005 specifies approximately $2.5M of funding be directed towards the County to offset cost of
service impacts. Half from a 50% sharing of residential property tax increment and a remittance of $60k per
year from personal property tax increment associated with the Foothills Mall redevelopment project.
Agenda Item 22
Item # 22 Page 2
Section 4 directed the City Manager to:
“work cooperatively with the County and, to the extent practicable, with other municipalities
and affected property tax levying entities in the County, to develop an appropriate fiscal impact
analysis model for evaluating financial impacts associated with the formation of tax increment
financing districts, the redevelopment of lands within the city, and the annexation of property
into the city, including but not limited to the analysis of cost of service and revenue
implications for both the City and the County, and for other affected taxing entities.”
Section 5 directs that upon completion of the modeling and updated fiscal impact analysis, the City Manager
will conduct an updated review of the financial arrangement and will propose for Council consideration such
additional financial support to Larimer County, if any, as he determines to be appropriate.
Regional Urban Renewal TIF Study Project:
After several discussions between the City and County, it was decided the County would be best to lead the
effort. The project was labeled “Regional Urban Renewal TIF Study” and interest in support of the projects
was requested from each community and tax levying entity within the County. The full team is comprised of a
representative of each entity below:
Larimer County
Fort Collins
Loveland
Berthoud
Estes Park
Johnstown
Timnath
Wellington
Windsor
Foothills Gateway
Poudre River Public Library District
Health District of Northern Larimer County
Thompson School District
Northern Colorado Water Conservancy District
Other priorities, including the flood in September 2013, delayed the launch of the project. The first team
meeting was held in February 2014 and the team continues to meet on a regular basis. A Purpose and Goals
Statement was developed by the team and each member reviewed the goals with their governing body. Based
on the purpose and goals statement, the team contracted with Economic & Planning Systems, Inc. (EPS) to
support the project.
A Technical Team comprised of financial representatives from Larimer County, Fort Collins, Loveland, the
Library and Gateway has been identified as a small team that will work directly with EPS to ensure the scope
of the model includes the right data, variables and assumptions to provide accurate fiscal impact results. EPS
and the Technical team will do the detailed technical work in developing a model that will then be reviewed by
the broader team referenced above. The model is complete; however, additional discussions are required to
finalize several key assumption inputs to the model and to finalize indirect impact factors that should be
considered with future projects. It is anticipated the model will be finalized during the first half of 2016.
CITY FINANCIAL IMPACTS
The City’s share of the total $108K cost of EPS is $30k. Funding for this expenditure came from unspent
“Operational Contingency” budget within the City Manager’s Office in 2014.
Agenda Item 22
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ATTACHMENTS
1. Resolution 2014-103 (PDF)
2. Resolution 2014-005 (PDF)
ATTACHMENT 1
ATTACHMENT 2
RESOLUTION 2015-117
OF THE COUNCIL OF THE CITY OF FORT COLLINS
EXTENDING BY ONE YEAR THE WORK-COMPLETION DEADLINE ESTABLISHED
IN RESOLUTION 2014-005 REGARDING COOPERATION AND A PARTNERSHIP WITH
LARIMER COUNTY ON THE USE OF TAX INCREMENT FINANCING
WHEREAS, on January 14, 2014, the City Council adopted Resolution 2014-005
authorizing the City Manager to carry out certain actions generally related to working with the
Fort Collins Urban Renewal Authority, Larimer County (the County”), and other taxing entities
in Larimer County to develop an appropriate fiscal impact analysis model for evaluating
financial impacts associated with the formation of tax increment financing districts, the
redevelopment of lands, and annexation of properties, including costs of service and revenue
implications; and
WHEREAS, Resolution 2014-005 authorizes the City Manager to enter into agreements
on the City’s behalf in support of the development of this fiscal impact model, with the work on
this project to be initiated no later than May 1, 2014, and completed no later than December 15,
2014; and
WHEREAS, Resolution 2014-103 amended Resolution 2014-005 and extended the
deadline for completion of the project to December 15, 2015; and
WHEREAS, since the adoption of Resolutions 2014-005 and 2014-103, City and County
staff have had several discussions out of which a new quantitative direct cost impact model and
a qualitative indirect impact factors model have been developed for use in the fiscal impact
analysis; and
WHEREAS, representatives have been holding meetings on a regular basis since
February 2014; and
WHEREAS, a Technical Team comprised of certain members of the working group will
work directly with the Economic Planning and Systems (“EPS”) to ensure the scope of the fiscal
impact model incudes the correct data, variables and assumptions to provide accurate fiscal
impact results; and
WHEREAS, the Technical Team and EPS will do the detailed technical work in
developing a model to be reviewed by a broader team; and
WHEREAS, the model is complete but additional discussion is necessary to finalize
several key assumption inputs to the model and to finalize indirect impact factors that should be
considered with future projects; and
WHEREAS, it is anticipated that the model will be finalized in 2016; and
WHEREAS, City staff is therefore requesting the City Council to amend Resolution
2014-005 to extend the work-completion deadline from December 15, 2015, to December 15,
2016; and
WHEREAS, the City Council finds that so extending for one year the work-completion
deadline in Resolutions 2014-005 is in the best interests of the City.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. That the City Council hereby makes and adopts the determinations and
findings contained in the recitals set forth above.
Section 2. That subparagraph (a) of Section 4 of Resolution 2014-005 is hereby
amended to read in full as follows:
(a) The City Manager is authorized to prepare such agreements as may be necessary
to retain the services of a mutually acceptable outside expert to develop the
described model for evaluating fiscal impacts, which may include sharing of costs
for the work. It is the Council’s intent that work on this project will be
undertaken no later than May 1, 2014, and will be completed no later than
December 15, 20156.
Section 3. That except as amended in this Resolution, all other provisions in
Resolution 2014-005 are hereby reaffirmed and shall remain in full force and effect.
Passed and adopted at a regular meeting of the Council of the City of Fort Collins this
15th day of December, A.D. 2015.
_________________________________
Mayor
ATTEST:
_____________________________
City Clerk