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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 05/15/2018 - ITEMS RELATING TO THE DOWNTOWN DEVELOPMENT AUTHORIAgenda Item 7 Item # 7 Page 1 AGENDA ITEM SUMMARY May 15, 2018 City Council STAFF Matt Robenalt, Executive Director Kristy Klenk, Financial Coordinator Travis Storin, Accounting Director Carrie M. Daggett, Legal SUBJECT Items Relating to the Downtown Development Authority Line of Credit Finance for 2019-2024. EXECUTIVE SUMMARY A. Resolution 2018-046 Approving an Intergovernmental Agreement Between the City of Fort Collins and the Fort Collins Downtown Development Authority Governing the Use of a Line of Credit. B. First Reading of Ordinance No. 066, 2018, Authorizing the Establishment of a Revolving Line of Credit to be Paid Solely with Downtown Development Authority Tax Increment Funds for a Six-Year Period in the Amount of up to Five Million Dollars Per Draw to Finance Downtown Development Authority Projects and Programs in Accordance with the Downtown Development Authority Plan of Development and Approving Related Documents. The purpose of this item is to renew the current Line of Credit (LOC) established in 2012 by the City on behalf of the Downtown Development Authority (DDA), which is scheduled to expire at the end of 2018. The City and DDA began taking steps earlier this year to renew this debt instrument with First National Bank for another six- year term, as it will be needed by the DDA to execute its projects and programs beginning in budget year 2019. The Board of Directors of the Downtown Development Authority believes it would be financially beneficial for the DDA and the community as a whole to renew the Line of Credit with First National Bank for a six-year period through adoption of Ordinance No. 066, 2018. The Line of Credit will be used to finance DDA projects and programs. Adoption of Resolution 2018-046 will approve the Second Intergovernmental Agreement (IGA), which provides the process steps by which the City and DDA engage the LOC. STAFF RECOMMENDATION Staff recommends adoption of the Resolution and Ordinance on First Reading. BACKGROUND / DISCUSSION The DDA Act (C.R.S. 31-25-801, as amended) has inherent processes that require the City and the DDA to work collaboratively to achieve the purpose of the legislation. Among these expected collaborations is the process for financing DDA activities. In 2012, Council adopted Ordinance No. 089, 2012 and the City and DDA established a line of credit (LOC) with First National Bank to satisfy the statutory requirement to generate proceeds from debt to be used by the DDA to execute its projects and programs and implement the DDA’s Plan of Development. The tax increment revenues created each year by the private investment that has occurred downtown is used to pay off the debt. Agenda Item 7 Item # 7 Page 2 A line of credit is also issued by municipalities in the jurisdictions of Colorado Springs, Castle Rock, Longmont and Greeley on behalf of their Downtown Development Authorities. The current LOC is scheduled to expire at the end of 2018. The City and DDA began taking steps earlier this year to renew this debt instrument with First National Bank for another six-year term, as it will be needed by the DDA to execute its projects and programs beginning in budget year 2019. Additionally, in 2012, Council approved Resolution 2012-081 and the DDA and City created an intergovernmental agreement (“IGA”) that established the process by which the two organizations would: • initiate requests for a draw from the LOC • verify tax increment revenue cash available to repay the debt • account for the loan proceeds released from the LOC, and • execute repayment with tax increment within 7 days of the initial LOC draw The Second IGA Governing a Line of Credit for Financing Downtown Development Authority Projects and Programs is also requested for approval by City Council to reflect the terms of the renewed LOC. Terms of LOC Renewal The renewed LOC will function and operate identically to the LOC established in 2012 in the following ways: • For the seven (7) day maximum period when there may be outstanding debt, the interest rate is set at Wall Street Journal (WSJ) Prime, which is currently 4.5% • Annual fee $750 The changes or differences with the renewed LOC are: • Maximum draw amount increased to $5,000,000, which is an increase over the maximum draw amount of $1,000,000 in the 2012 LOC. The City desires this increased amount as it will reduce the number of draws required to support DDA activities, and eliminate redundancy for City, DDA and bank staff to execute multiple draws.\ • Minimum finance charge increased to $350 per draw, which is an increase from the minimum charge of $250 in the 2012 LOC. • Maturity date is December 31, 2024, for an effective LOC operating period of six (6) years. The Promissory Note and Agreement from First National Bank is attached as Exhibit A to Ordinance No. 066, 2018. The draft Second IGA Governing a Line of Credit for Financing Downtown Development Authority Projects and Programs is attached to Resolution 2018-046 as Exhibit A. Benefits and Impacts of the LOC When the DDA and City began using the LOC financing approach in 2012, it provided benefits and positive impacts over the much more expensive forms of financing such as issuance of traditional revenue bonds or private-placement financing with banks and other investors. Using the LOC approach to finance DDA projects and programs results in a significantly shorter period of time in which the City debt incurs interest. This means that more funding is available to invest directly into projects and programs in the downtown, and less is spent on finance fees and interest expenses. Staff analyzed the savings from this approach during the term 2012-2018 of the original LOC against that of the other forms of traditional financing used by the City and DDA during the same time period. The financial savings is significant, as the total annual charges for draws against the credit line range from $1,000 to $1,750 depending on the number of draws initiated. Agenda Item 7 Item # 7 Page 3 Since 2012, the LOC total interest and financing fees for $8,700,887 of principal debt was $7,250. In contrast, the total interest and finance fees for the City/DDA traditional financing approach using certificates of participation and private placement bonds for $15,279,063 of principal debt was $3,412,065. Other benefits and positive impacts using the LOC include: • Strong expression of fiduciary stewardship of public funds • Recognition that investment of tax increment funds, derived from property tax assessments of overlapping tax entities, creates positive growth in assessed value and thereby increased the value of the property tax base for all overlapping entities. (83% of the DDA tax increment comes from tax entities other than the City such as Larimer County and Poudre School District) • Funding partnerships of the DDA undertaken with the City and private sector have no cost of capital charges assessed to the projects • Every draw made on the LOC is paid off within seven (7) days, which means no effect at the end of the calendar year on the City’s fund balance or City Comprehensive Annual Financial Report. CITY FINANCIAL IMPACTS As mentioned previously, every draw made on the LOC is paid off within seven (7) days, which means no effect at the end of the calendar year on the City’s fund balance or City Comprehensive Annual Financial Report. BOARD / COMMISSION RECOMMENDATION On April 16, 2018, DDA staff presented information to the City Council Finance Committee, demonstrating the benefit of renewing the Line of Credit Financing for various projects. The Committee requested clarification on how lenders are selected and that the renewal of the LOC with First National Bank was consistent with City Purchasing Policies for supplier selection. A response memo from Finance and Purchasing staff is provided as Attachment 5, describing lender selection and specifically the approach for this LOC. The Council Finance and Audit Committee had no objections to moving forward with the renewal of the Line of Credit financing tool. DDA Board At its regular meeting on April 12, 2018, the DDA Board of Directors adopted Resolution 2018-02, recommending to the Fort Collins City Council the renewal of a Line of Credit with First National Bank for a six (6) year period with a maximum per-draw limit of five million dollars ($5,000,000) to be placed in the Downtown Development Authority’s Financing Activity Fund for expenditure on certain projects and programs in accordance with the Downtown Development Authority Plan of Development and the approval of the Intergovernmental Agreement governing the Line of Credit. PUBLIC OUTREACH Both the DDA Board of Directors regular meeting of April 12, 2018 and the Council Finance Committee meeting of April 16, 2018 were duly posted public meetings. ATTACHMENTS 1. Downtown Development Authority Boundary Map (PDF) 2. Downtown Development Authority Board Meeting minutes, April 12, 2018 (draft) (PDF) 3. Downtown Development Authority Resolution 2018-02 Renewal of Line of Credit (PDF) 4. Council Finance Committee minutes, April 16, 2018 (draft) (PDF) 5. Memo-Procurement of Lending Services for City Debt, May 10, 2018 (PDF) Cache La Poudre River ³I ÕZYXW E Vine Dr Riverside Ave N College Ave S Lemay Ave S College Ave 9th St E Lincoln Ave S Mason St S Howes St E Mulberry St W Laurel St Laporte Ave Remington St W Mulberry St N Lemay Ave W Mountain Ave Jefferson St N Mason St N Howes St E S un i g a R d E Mountain Ave Remington St N L e may A v e Smith St E Elizabeth St Mathews St Peterson St Locust St E Myrtle St Stover St Whedbee St Linden St 12th St Maple St Cherry St Conifer St E Plum St W Oak St E Olive St W Olive St Willow St W Myrtle St Buckingham St E Oak St DDA Minutes April 12, 2018 pg. 2 Sales Tax Report: Jennifer Poznanovic, Revenue and Project Manager for the City of Fort Collins, was introduced. Though she has been in Fort Collins for about four years, she just recently joined the City. She noted that the current report contained three months of data from January – March 2018. Monthly reports will be distributed from this point on and City staff will present to the Board on a quarterly basis. ALLEY ENHANCEMENT CONSTRUCTION CONTRACT Todd Dangerfield presented the alley enhancement construction contract and explained the process for choosing Mountain Constructors for the 2018 alley renovation project. Of the two bids received, Mountain Constructors bid was within budget and they are a known entity on the Front Range. At the time of packet publication, the process to validate the award recommendation was still in progress pursuant to the City’s purchasing process. Since the distribution of the packer, staff, Ditesco, and the City reviewed the submittals and verified that all project proposal requirements, including qualifications and references, were satisfied. A draft of the general contractor agreement section of the overall project contract was distributed to the Board members. Moved by Mark Williams, seconded by Jenny Bramhall: To approve Section 00520 Agreement and authorize the Chair to execute the agreement with Mountain Constructors in the amount of $1,989,542 for the construction of the West Mountain and Old Firehouse/Seckner Alleys. The motion passed unanimously. SECOND IGA FOR LINE OF CREDIT Kristy Klenk presented a snapshot of the line of credit history and the process for renewing the current line of credit, which expires at the end of 2018. Ms. Klenk explained that staff had already met with First National Bank and City Finance staff to discuss the renewal for a six‐year term from 2019‐2024. It will be presented to Council Finance on Monday, April 16. The change of terms in the renewed line of credit include that the amount will be increased from $1,000,000 per draw to $5,000,000 per draw. This will save both City and Bank staff time. The minimum finance charge will also be increased from $250 per draw to $350 per draw. She reminded the Board that the line of credit satisfies the statutory requirement to generate proceeds from debt to be used by the DDA to execute its projects and programs and implement the DDA’s Plan of Development. Ms. Klenk then reviewed estimated line of credit funding requirements from 2019‐2024 and the projected tax increment collections from 2018‐2031. Justin Larson questioned how the tax increment growth is projected. Mr. Robenalt explained that because of the requirements of the DDA act extending the collection period, it is not a linear increase and that the rolling base provided a greater benefit to overlapping entities over time. Mr. Robenalt explained that the benefit of line of credit financing was the significant interest savings realized. The payback period is within seven days. The desired outcomes are to minimize costs, maximize tax increment for investment in the downtown, provide the best stewardship of resources, benefit overlapping entities, and maintain the long‐standing relationship with the City. The schedule going forward is to meet with Council Finance on April 16, then first reading at Council will occur on May 15 and second reading anticipated for June 5. Moved by Mark Williams, seconded by Bevin Parker: To approve Resolution 2018‐02 recommending to the City of Fort Collins the renewal of the line of Credit. The motion was approved unanimously. Moved by Mark Williams, seconded by Angel Kwiatkowski: To approve the Second Intergovernmental Agreement Governing a Line of Credit for Financing Downtown Development Authority Projects and Programs and authorize the Board Chair to execute the IGA upon adoption by City Council. The motion ATTACHMENT 2 DDA Minutes April 12, 2018 pg. 3 further authorizes legal counsel to make minor language changes to the IGA that are of a non‐substantive nature and that will not materially affect the intent of the Agreement. The motion passed unanimously. PARTIAL RELEASE & PARTIAL TERMINATION OF FAÇADE EASEMENT: 223 WILLOW STREET (Josh Liley recused himself from the meeting as his firm has conflict on this item. Any legal matters regarding 223 Willow Street will be handled by alternate legal counsel Jim Martel who was not able to be present.) Matt Robenalt explained that the DDA originally invested $80,000 in the façade of the office building located at 223 Willow Street and that this request for a partial release and partial termination of the façade easement in no way affects the original DDA investment The purpose of the request is to avoid a situation that would create an unnecessary and undesired encumbrance on that portion of the parcel that is being sold by Schrader Oil to a buyer who intends to build a residential infill project on the site. The site is divided by a Union Pacific Railroad spur and was indicated on a parcel map that was provided. Justin Larson stated that another way to look at it is that if the parcel was severed before the DDA façade agreement, it would not have changed the DDA investment. Matt Robenalt added that the DDA action years ago moving the switching yard created this situation on the site. Angel Kwiatkowski asked if the new owners intend to come to the DDA requesting an investment. Mr. Robenalt stated that staff had been in conversation with the new owners about such a request. Moved by Mark Williams, seconded by Chris Aronson: To Approve the Partial Release and Partial Termination of the Agreement and Easement for 223 Willow Street, and authorize the Board Chair to execute this action with the owner of 223 Willow Street. The motion was approved unanimously. OTS SKATE RINK END OF SEASON REPORT Derek Getto presented the end‐of‐season skate rink report. A video of skaters using the rink was shown. The second season of the synthetic skate rink in the Square was characterized by several enhancements: increased size; a dasher board system replaced the picket fence; space heaters and throws for public use; a fully finished skate shed; increased maintenance of the surface. These improvements all created a better skating experience. Mark Williams asked about the cost which was $2 entry and $1 skate rental. The rink was open from Thanksgiving until Valentine’s Day and showed an almost 50% increase in users during 2017‐2018. Cost of operations was much higher during the first year. This year days/hours of use, staffing, and technology were all improved. Next season’s goals are to continue to evaluate operation hours, maintain efficiencies in staffing and maintenance, and look for opportunities for promotion and enhancement. Bohemian Foundation supported the program for the past two seasons. Justin Larson commented that the rink did an amazing job of enhancing the program in Old Town Square. Matt Robenalt added that it spurred activity and provided affordable entertainment. Derek Getto noted that the DBA rented the rink for First Night and provided a free attraction for that event. Mr. Larson said he understood the set up was challenging and asked if it would be easier going forward. Mr. Getto responded that the leveling and cutting for the expanded footprint had been difficult but should be easier going forward. Matt Robenalt ended the discussion stating that the rink would not be possible without the partners: Bohemian Foundation, City Parks, City Recreation, and staff members Derek Getto and Kristy Klenk. OTHER BUSINESS No other business was discussed. ADJOURN There being no further business the meeting adjourned at 8:40 a.m. ATTACHMENT 3 Finance Administration 215 N. Mason 2nd Floor PO Box 580 Fort Collins, CO 80522 970.221.6788 970.221.6782 - fax fcgov.com Finance Committee Meeting Minutes 04/16/18 10 am ‐ noon CIC Room ‐ City Hall Council Attendees: Mayor Wade Troxell, Ross Cunniff, Ken Summers, Gerry Horak Staff: Darin Atteberry, Mike Beckstead, Travis Storin, Carrie Daggett, John Duval, Rachel Springob, Noelle Currell, Laurie Kadrich, Tim Kemp, Chad Crager, Kyle Lambrecht, Daniel Woodward, Martina Wilkinson, Kelly DiMartino, Wendy Williams, Andres Gavaldon, Joanne Cech, Lawrence Pollack, Zach Mozer, Jennifer Poznanovic, Jackie Thiel, Sue Beck‐Ferkiss, Beth Sowder Others: Matt Robenalt and Kristy Klenk, DDA Staff Kevin Jones (Chamber of Commerce), Dale Adamy (Citizen) David Rout, Executive Director of Homeless Gear Meeting called to order at 10:05 am by Mayor Troxell. Minutes approval for March 19, 2018 Council Finance Committee Meeting. Ross Cunniff made a motion to approve the minutes and Ken Summers seconded the motion. The minutes from the March 19th Council Finance Committee meeting were approved unanimously. A. DDA Credit Line Renewal Matt Robenalt, Executive Director, Downtown Development Authority Kristy Klenk, Finance Coordinator, Downtown Development Authority EXECUTIVE SUMMARY The current LOC established in 2012 by the City on behalf of the DDA is scheduled to expire at the end of 2018. The City and DDA began taking steps earlier this year to renew this debt instrument with First National Bank for another six‐year term, as it will be needed by the DDA to execute its projects and programs beginning in budget year 2019. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED Does Council Finance recommend bringing the City’s renewal of the bank authorized Line of Credit, on behalf of the DDA, to Council? BACKGROUND/DISCUSSION ATTACHMENT 4 2 The DDA Act (C.R.S. 31‐25‐801, as amended) has inherent processes that require the City and the DDA to work collaboratively to achieve the purpose of the legislation. Among these expected collaborations is the process for financing DDA activities. In 2012, Council adopted Ordinance No. 089, 2012 and the City and DDA established a line of credit (LOC) with First National Bank to satisfy the statutory requirement to generate proceeds from debt to be used by the DDA to execute its projects and programs and implement the DDA’s Plan of Development. The tax increment revenues created each year by the private investment that has occurred downtown is used to pay off the debt. The current LOC is scheduled to expire at the end of 2018. The City and DDA began taking steps earlier this year to renew this debt instrument with First National Bank for another six‐year term, as it will be needed by the DDA to execute its projects and programs beginning in budget year 2019. Additionally, in 2012, Council approved Resolution 2012‐081 and the DDA and City created an intergovernmental agreement (“IGA”) that established the process by which the two organizations would: • initiate requests for a draw from the LOC • verify tax increment revenue cash available to repay the debt • account for the loan proceeds released from the LOC, and • execute repayment with tax increment within 7 days of the initial LOC draw The Second IGA Governing a Line of Credit for Financing Downtown Development Authority Projects and Programs is also requested for approval by City Council to reflect the terms of the renewed LOC. Terms of LOC Renewal The renewed LOC will function and operate identically to the LOC established in 2012 in the following ways: • For the seven (7) day maximum period when there may be outstanding debt, the interest rate is set at Wall Street Journal (WSJ) Prime, which is currently 4.5% • Annual fee $750 The changes or differences with the renewed LOC are: • Maximum draw amount increased to $5,000,000, which is an increase over the maximum draw amount of $1,000,000 in the 2012 LOC. The City desires this increased amount as it will reduce the number of draws required to support DDA activities, and eliminate redundancy for City, DDA and bank staff to execute multiple draws. • Minimum finance charge increased to $350 per draw, which is an increase from the minimum charge of $250 in the 2012 LOC. • Maturity date is December 31, 2024, for an effective LOC operating period of six (6) years. The Promissory Note & Agreement from First National Bank is attached. Also attached is the draft Second IGA Governing a Line of Credit for Financing Downtown Development Authority Projects and Programs. Benefits and Impacts of the LOC 3 When the DDA and City began using the LOC financing approach in 2012, it provided benefits and positive impacts over the much more expensive forms of financing such as issuance of traditional revenue bonds or private‐placement financing with banks and other investors. Using the LOC approach to finance DDA projects and programs results in a significantly shorter period of time in which the City debt incurs interest. This means that more funding is available to invest directly into projects and programs in the downtown, and less is spent on finance fees and interest expenses. Staff analyzed the savings from this approach during the term 2012‐2018 of the original LOC against that of the other forms of traditional financing used by the City and DDA during the same time period. The financial savings is significant. Since 2012, the LOC total interest and financing fees for $8,700,887 of principal debt was $7,250. In contrast, the total interest and finance fees for the City/DDA traditional financing approach using certificates of participation and private placement bonds for $15,279,063 of principal debt was $3,412,065. Other benefits and positive impacts using the LOC include: • Strong expression of fiduciary stewardship of public funds • Recognition that investment of tax increment funds, derived from property tax assessments of overlapping tax entities, creates positive growth in assessed value and thereby increased the value of the property tax base for all overlapping entities. (83% of the DDA tax increment comes from tax entities other than the City such as Larimer County and Poudre School District) • Funding partnerships of the DDA undertaken with the City and private sector have no cost of capital charges assessed to the projects • Every draw made on the LOC is paid off within seven (7) days, which means no effect at the end of the calendar year on the City’s fund balance or City Comprehensive Annual Financial Report Next Steps & Key Dates The following key dates outline the remaining steps in the schedule to implement the LOC renewal: 4/12/18 DDA Board of Directors Resolution Recommending to the Fort Collins City Council the Renewal of a Line of Credit, and adoption of Second IGA Governing a Line of Credit for Financing Downtown Development Authority Projects and Programs 5/15/18 City Council 1st reading of Ordinance approving LOC renewal, and Resolution to approve Second IGA Governing a Line of Credit for Financing Downtown Development Authority Projects and Programs 6/5/18 City Council 2nd Reading of Ordinance approving LOC Discussion / Next Steps: Intent to increase draw amount to $5m to reduce number of steps repeated – simplify process 4 Ross Cunniff; support of concept ‐ questions that would be helpful for Council to know the answers to ‐ What was the original reason for limiting to the draw to $1m? Matt Robenalt; That was the need at that time ‐ in 2012 the DDA was subject to the share back with overlapping entities – as a result we saw a reduction of 68% ‐ we were operating on a very limited amount of funding so the need was not there for that amount Ross Cunniff; you refer to the Capital Improvement Plan as a driver Matt Robenalt; The DDA has an internal multi‐year Capital Improvement Plan that we operate with which includes alley investments, enhanced alleyways, etc. Ross Cunniff; Is this a document you could share? Matt Robenalt: We would be happy to send this document to you for your reference ‐ it was created in 2015 by the DDA and has been consistently updated and funds allocated each February Ross Cunniff; is there any requirements or common practice with respect to a RFP process for selecting lenders? Does the City have or should it have a policy? What is the industry practice? Mike Beckstead; I would like to confirm but I believe we did an RFP back in 2012 when we first did this. Matt Robenalt; we received 3 proposals from different banks and First National offered the best terms. Travis Storin; it is part of the exiting banking services contract that the City has with First National Bank We work with purchasing to make sure the agreement is broad enough to cover the line of credit. Ross Cunniff; we recently passed an ordinance allowing a bid free renewal of a contract ‐ would that be prudent is this case to do this On Consent ‐ common practice? Not opposed to going with the same people. Mike Beckstead; Yes, the general practice is to go with an RFP ‐ We did this when we first set this up ‐ we were in a situation with great customer service and an active contract with FNB with the ability to integrate into an existing contract ‐ We could have done an RFP ‐ Travis Storin; 2012 ‐ cost of capital with FNB was a prevailing factor ‐ other respondents Ross Cunniff; If you can articulate the benefits to the city and to the DDA of not doing an RFP as an exception to our process ‐ we should bring this forward to Council Mike Beckstead; this is not something a bank makes much money on ‐ this is more of a good community service for FNB to do to support the community and the Downtown Development Agency ‐ I don’t think the outcome would be any different – we will include with the AIS Ken Summers: I am good with this ATTACHMENT 5 -1- RESOLUTION 2018-046 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROVING AN INTERGOVERNMENTAL AGREEMENT BETWEEN THE CITY OF FORT COLLINS AND THE FORT COLLINS DOWNTOWN DEVELOPMENT AUTHORITY GOVERNING THE USE OF A LINE OF CREDIT WHEREAS, on April 21, 1981, the City Council adopted Ordinance No. 046, 1981, establishing the Fort Collins, Colorado Downtown Development Authority (“DDA”); and WHEREAS, the DDA has been duly organized in accordance with the Colorado Revised Statutes 31-25-801, et seq.; and WHEREAS, at the November 7, 2006, general election, a City-initiated measure to authorize the issuance of bonds for DDA projects through debt of up to $150,000,000, with a repayment cost of up to $250,000,000, was approved by the votersqualified electors as provided C.R.S, Title 31, Article 25, Part 8; and WHEREAS, in 2012, the Board of Directors of the DDA recommended to the City Council through the adoption of Resolution 2012-02, the establishment of a revolving line of credit for a six-year period in the amount of one million dollars annually to finance DDA projects and programs in accordance with its approved Plan of Development, the Downtown Plan and the Downtown Strategic Plan; and WHEREAS, in 2012, the City Council adopted Resolution 2012-081, approving an intergovernmental agreement between the City and the DDA to govern the use of the DDA line of credit, and Ordinance No. 089, 2012, authorizing the establishment of a revolving line of credit, as described above; and WHEREAS, the City and the DDA entered into that intergovernmental agreement, and implemented its terms, and the line of credit arrangement established in 2012 is scheduled to expire at the end of 2018; and WHEREAS, in order to renew and update the line of credit arrangement, staff of the City and the DDA have negotiated a new instrument and related documents that would renew the line of credit for a six-year period, and increase the limit on the line of credit limit to a maximum draw of five million dollars to reduce the number of draws required to support DDA activities, thus reducing the inefficiencies in the original arrangement; and WHEREAS, the Board of Directors of the DDA has recommended to the City Council through the adoption of Resolution 2018-02, the establishment of a revolving line of credit for a six-year period in the maximum amount of five million dollars per draw (“Line of Credit”), with such other terms and conditions as are set forth in the financing documents, a copy of which are on file in the office of the City Clerk and available for public inspection (the “LOC Documents”), to finance DDA projects and programs in accordance with its approved Plan of Development, the Downtown Plan and the Downtown Strategic Plan; and -2- WHEREAS, the establishment of the Line of Credit for such purpose would be financially beneficial for the DDA and the community as a whole; and WHEREAS, the City is authorized to enter into intergovernmental agreements, such as a grant agreement, to provide any function, service or facility, under Article II, Section 16 of the Charter of the City of Fort Collins and Section 29-1-203, C.R.S.; and WHEREAS, the City desires to enter into an intergovernmental agreement between the City and the DDA regarding the establishment of the Line of Credit and governing its use in the form attached hereto and incorporated herein as Exhibit “A” (the “IGA”). NOW, THEREFORE, BE IT RESOLVED BY 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 the Mayor is hereby authorized to execute the IGA on behalf of the City, in substantially the form contained in Exhibit “A” attached hereto and incorporated herein by this reference, subject to such modifications and additions as may be deemed necessary or appropriate by the City Manager, in consultation with the City Attorney, in order to protect the interests of the City or to further the purposes of the Agreement or this Resolution. Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 15th day of May, A.D. 2018. _________________________________ Mayor Pro Tem ATTEST: _____________________________ City Clerk 1 SECOND INTERGOVERNMENTAL AGREEMENT GOVERNING A LINE OF CREDIT FOR FINANCING DOWNTOWN DEVELOPMENT AUTHORITY PROJECTS AND PROGRAMS This INTERGOVERNMENTAL AGREEMENT (“IGA”) is entered into this _____ day of _______________, 2018, by and between THE FORT COLLINS, COLORADO DOWNTOWN DEVELOPMENT AUTHORITY, a body corporate and politic ( the “DDA”) and THE CITY OF FORT COLLINS, COLORADO, a Colorado municipal corporation (the “City”). WITNESSETH: WHEREAS, the DDA has been created pursuant to the provisions of Title 31, Article 25, part 8, Colorado Revised Statutes, and Chapter 2, Article IV, Division 1 of the City Code (the “DDA Statute”); and WHEREAS, the DDA Statute has declared that the organization of downtown development authorities will serve a public use; promote the health, safety, prosperity, security, and general welfare of the inhabitants thereof and of the people of this state; will halt or prevent deterioration of property values or structures within central business districts; halt or prevent the growth of blighted areas within such district, and assist municipalities in the development and redevelopment of downtowns and in the overall planning to restore or provide for the continuance of the health thereof; and WHEREAS, the DDA provides an invaluable service to the City by promoting the health, safety, prosperity, security and general welfare of those living and working within its boundaries; and WHEREAS, pursuant to C.R.S. §31-25-808(1)(f), the DDA is empowered to enter into contracts with governmental agencies and public bodies in furtherance of the statutory mission of the DDA; and WHEREAS, Article II, Section 16 of the City Charter empowers the City Council of the City, by ordinance or resolution, to enter into contracts with other governmental bodies to furnish governmental services and make charges for such services or enter into cooperative or joint activities with other governmental bodies; and WHEREAS, the primary means of financing DDA projects and programs is through the use of property tax increment collected within the DDA boundaries, and C.R.S. §31-25- 807(3)(a)(II) requires that the City incur some form of debt in order to finance such projects and programs using property tax increment revenues collected within the DDA boundaries; and WHEREAS, a line of credit established by the City with a financial institution meets the requirements of C.R.S. §31-25-807(3)(a)(II), and the costs and interest associated with such a line of credit are much lower that would be the case with other types of financing; and EXHIBIT A 2 WHEREAS, it is in the best interests of both the DDA and the City to reduce financing costs of DDA projects and programs in order to preserve the maximum amount of property tax increment revenues for DDA projects and programs within its boundaries; and WHEREAS, on October 15, 2012, the parties entered in that certain agreement entitled “Intergovernmental Agreement Governing a Line of Credit for Financing Downtown Development Authority Projects and Programs” which established a line of credit to finance certain DDA projects and programs and defined the process for use of such line of credit (the “2012 IGA”); and WHEREAS, the term of the 2012 IGA is for six (6) years, expiring December 31, 2018; and WHEREAS, the parties desire to enter into this IGA for the purpose of extending the Line of Credit established in the 2012 IGA for an additional six (6) years, with an increased per- draw limit of Five Million Dollars ($5,000,000), on the same general terms and conditions contained in the 2012 IGA. NOW, THEREFORE, in consideration of the mutual covenants and promises of the parties as hereafter provided and other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the parties agree as follows: 1. TERM. The term of this IGA shall commence upon execution by the parties and continue through December 31, 2024 (“Term”), unless earlier terminated by mutual agreement. 2. LINE OF CREDIT. Attached hereto as Exhibit A, and incorporated herein by reference, is a copy of the Promissory Note and Agreement (the “LOC Agreement”) between the City and First National Bank of Omaha (“First National Bank”) establishing an annual revolving line of credit, renewable each fiscal year of the Term for the benefit of the City on behalf of the DDA, and which, in addition to other terms and conditions for its use, provides for a maximum per-draw limit of Five Million Dollars ($5,000,000) (the “Line of Credit”). The City Council on ______________ adopted Ordinance No, ____, 2018 on second reading approving the LOC Agreement and authorizing the Chief Financial Officer to execute the LOC Agreement. The City shall execute the LOC Agreement and shall take such other actions as may be necessary to have the Line of Credit available for draw no later than January 1, 2019. 3. REQUIREMENTS FOR DRAWS ON LINE OF CREDIT. Any draw on the Line of Credit by the City during the Term shall be in accordance with all of the following requirements: 3 3.1 The DDA Board shall annually adopt a resolution approving its budget and shall adopt a resolution recommending the City Council of the City appropriate DDA monies to fund the DDA budget; and 3.2 The City Council of the City shall annually approve the DDA budget and by ordinance appropriate funds therefor, including funds for debt service for the Line of Credit and expenditure of the Line of Credit proceeds, as applicable; and 3.3 Any draw on the Line of Credit shall be used only to pay the costs of DDA projects and programs approved in the annual DDA budget and for which funds have been appropriated by the City; and 3.4 The sequence of steps for drawing on the line of credit shall be as depicted in the flowchart contained in Exhibit B, attached hereto and incorporated herein by reference; and 3.5 Prior to any draw on the Line of Credit, the DDA’s Executive Director shall determine and report to the City’s Chief Financial Officer the current level of total debt that has at that time been issued under the existing voter authorization for DDA debt and further shall verify and report to the City’s Chief Financial Officer that there are sufficient tax increment monies in the DDA’s Debt Service Fund to replenish the Line of Credit in the amount of the draw and the interest cost. The DDA’s Executive Director shall supply the City’s Chief Financial Officer with documentation supporting such determinations and reporting, with examples of the documentation to be supplied being depicted in Exhibits C-1 through C-6, attached hereto and incorporated herein by reference. The City’s Chief Financial Officer shall review such information and documentation reported, and shall make no draw on the Line of Credit in excess of such available debt authorization or such available tax increment monies; and 3.6 The City’s Chief Financial Officer shall have the authority to request any draw on the Line of Credit consistent with the LOC Agreement, upon written request by the DDA’s Executive Director; and 3.7 Upon receipt of funds from First National Bank, the City’s Chief Financial Officer shall cause the proceeds from the related Line of Credit draw to be available to the DDA; and 3.8 At the time of a draw request, the City’s Chief Financial Officer will initiate such action as is necessary to repay the draw using funds from the DDA’s Debt Service Fund within seven (7) working days of receipt of the draw, such that the Line of Credit is fully replenished to its Five Million Dollars ($5,000,000) limit of available credit within seven (7) working days of receipt of each such draw. 4. EARLY TERMINATION In the event that for any reason the Line of Credit is terminated, the parties agree that they will work together in good faith to secure another line of credit that meets the purposes of this IGA, subject to such City Council and DDA Board approval as may be required. In 4 such event, any such new letter of credit shall be subject to the provisions of, but shall not require an amendment to, this IGA. 5. NOTICE. All notices to be given to parties hereunder shall be in writing and shall be sent by certified mail to the addresses specified below: DDA: Downtown Development Authority Attn: Executive Director 19 Old Town Square, Suite 230 Fort Collins, CO 80524 With a copy to: Lucia A. Liley, Esq. Liley Law Offices 419 Canyon Avenue, Suite 220 Fort Collins, CO 80521 CITY: City of Fort Collins Attn: Chief Financial Officer 215 North Manson Street Fort Collins, CO 80524 With a copy to: City of Fort Collins Attn: City Attorney 300 LaPorte Avenue Fort Collins, CO 80521 6. THIRD PARTY BENEFICIARIES. This IGA shall not be construed as or deemed to be an agreement for the benefit of any third party or parties, and no third party or parties shall have any right of action hereunder for any cause whatsoever. 7. GOVERNING LAW/SEVERABILITY. The laws of the State of Colorado shall govern the construction, interpretation, execution and enforcement of this IGA. In the event any provision of this IGA shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision of this IGA. 8. 2012 IGA. The parties agree that this IGA shall not supersede the 2012 IGA. The 2012 IGA shall remain in full force and effect until expiration or termination, as provided for therein. 5 IN WITNESS WHEREOF, the parties have executed this IGA the day and year first above written. CITY OF FORT COLLINS, COLORADO, a Colorado municipal corporation By: ____________________________________ Darin A. 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ZĞƐĞƌǀĞƐ ZĞƐƚƌŝĐƚĞĚͲZĞƋƵŝƌĞĚďǇ'tĂŶŬĨŽƌŽŶĚ ϭ͕ϮϱϬ͕ϬϬϬ ϭ͕ϮϱϬ͕ϬϬϬ ϭ͕ϮϱϬ͕ϬϬϬ ϭ͕ϮϱϬ͕ϬϬϬ ϬϬϬϬϬ DƵůƚŝͲǇĞĂƌZĞŝŵďƵƌƐĞŵĞŶƚƐ;ϱ͘ϱйͿ Ϯϯ͕ϭϮϲ ϯϰ͕ϲϮϮ ϰϭ͕ϰϲϮ ϰϯ͕ϵϯϳ ϰϮ͕ϰϳϱ ϯϱ͕ϮϮϳ ϯϱ͕ϮϮϳ ϯϯ͕ϬϮϳ Ϯϴ͕ϴϱϰ ŽŵŵŝƚƚĞĚͲ,ĂůĨŽĨEĞǆƚzĞĂƌŽŵŵŝƚŵĞŶƚƐ Ϯϳϲ͕ϳϬϳ ϭϯϲ͕ϰϱϳ ϭϱϬ͕Ϭϳϱ ϭϱϬ͕Ϭϳϱ ϭϱϬ͕Ϭϳϱ ϭϱϬ͕Ϭϳϱ ϭϱϬ͕Ϭϳϱ ϭϱϬ͕Ϭϳϱ ϭϱϬ͕Ϭϳϱ ZĞƐĞƌǀĞƐdŽƚĂů ϭ͕ϱϰϵ͕ϴϯϯ ϭ͕ϰϮϭ͕Ϭϳϵ ϭ͕ϰϰϭ͕ϱϯϳ ĂůĂŶĐĞͲhŶĐŽŵŵŝƚƚĞĚĨŽƌĨŽůůŽǁŝŶŐǇĞĂƌ ϭϮ͕ϰϯϭ ;ϰϯ͕ϬϱϱͿ ;ϬͿ Ϭ Ϭ ;ϬͿ Ϭ ;ϬͿ ;ϬͿ &ƵŶĚĂůĂŶĐĞ ϭ͕ϱϲϮ͕Ϯϲϰ ϭ͕ϯϳϴ͕ϬϮϱ ϭ͕ϰϰϭ͕ϱϯϳ EKd^͗ ϮϬϭϬŽŶĚ ΨϭϮ͕ϱϬϬ͕ϬϬϬďŽŶĚͲϭϬǇĞĂƌͲϯ͘ϵϬй;dͿĂŶĚϱ͘ϭϳй;dͿŝŶƚĞƌĞƐƚͲŝŶƚĞƌĞƐƚŽŶůǇƵŶƚŝůĞĐĞŵďĞƌϮϬϭϮ tŽŽĚǁĂƌĚŽŶĚ Ψϲ͕ϬϱϬ͕ϬϬϬďŽŶĚͲƵƌƌĞŶƚƌĂƚĞŽĨ͘Ϯϱй͕ƌĞƐĞƚĞĂĐŚ^ĞƉƚĞŵďĞƌϮϲƚŚĂŶŶŝǀĞƌƐĂƌǇ ƵĚŐĞƚzĞĂƌϮϬϭϴƚŚƌŽƵŐŚϮϬϮϰ WƌŽǀŝĚĞĚďǇƚŚĞŽƵŶƚǇ ƵĚŐĞƚzĞĂƌϮϬϭϵƚŚƌŽƵŐŚϮϬϮϰ ,ŝƐƚŽƌŝĐĂůŐƌŽǁƚŚĂǀĞƌĂŐĞŽĨϱ͘ϴйŝŶƐƐĞƐƐĞĚsĂůƵĞ >ĞŐĞŶĚ WƌŽũĞĐƚĞĚWƌŽƉĞƌƚǇdĂǆZĞǀĞŶƵĞ ŽĂƌĚDĞĞƚŝŶŐ͕&ĞďƌƵĂƌǇϴ͕ϮϬϭϴ ŽǁŶƚŽǁŶĞǀĞůŽƉŵĞŶƚƵƚŚŽƌŝƚǇdĂǆ/ŶĐƌĞŵĞŶƚĂƐŚ&ůŽǁ^ƚĂƚĞŵĞŶƚ dĂǆ/ŶĐƌĞŵĞŶƚZĞǀĞŶƵĞ WƌŽũĞĐƚĞĚ:ĞĨĨĞƌƐŽŶ^ƚ͘'ĂƌĂŐĞ WƌŽũĞĐƚĞĚƉƉƌŽǀĂůŽĨŽŶƚŝŶƵĂƚŝŽŶŽĨ>K WƌŽũĞĐƚĞĚĚĚŝƚŝŽŶŽĨdǁŽůůĞǇƐ (;+,%,7& (ƐнŽůůĞĐƚŝŽŶƐ ;Ϯϱ Ϭ͕ϱϵϮ ϱϵϮ $ ϰϮϯ͕Ϭϱϳ ϰϮ ϱϬϬ͕ϬϬϬ ϮϱϬ͕ϬϬϬ ϮϱϬ͕Ϭ Ϯϯϱ͕ϬϬϬ Ϯϯϱ͕ $0Ϯϲϰ͕ϳϰϭ Ϯϲϰ͕ϳϰϭ $Ϯϳ͕ϯϬϬ ϬϬ 03/0 ϳϱϯ͕ϴϲϯ ϳϵϴ͕ϴϱϭ ( ϳϳϮ͕ϮϳϬ Base Increment Total Assessed FORT COLLINS DOWNTOWN DEV. AUTH 058 Auth AuthorityName Area % TIF % Effective Increment * Effective Base * Total Assessed Mill Levy Total Revenue Entity Revenue TIF Revenue TIF Tax Warrant 12/21/2017 Authority # 2017 328'5(56&+22/',675,&7 /$5,0(5&2817< &,7<2))257&2//,16 +($/7+',675,&72)1257+(51/$5,0(5&17< )257&2//,16'2:172:1'(9$87+ )257&2//,16*,'12 /$5,0(5&2817<3(67&21752/ %2;(/'(56$1,7$7,21',675,&7 ($67/$5,0(5&2817<:$7(5',675,&7 328'5(5,9(538%/,&/,%5$5<',675,&7 1257+(51&2/25$'2:$7(5&216',675,&7 %/2&.0(752',675,&712 %/2&.0(752',675,&712 * Base and increment values certified to taxing entities (;+,%,7& (',675,&7 ; $ 03/ ( $5,665,066 Total TIF Rev 'DWH ,QWHUHVW 3ULQFLSDO 7RWDO 7RWDOIRUWKH<HDU 'RZQWRZQ'HYHORSPHQW$XWKRULW\ %RQG3D\PHQW6FKHGXOH (;+,%,7& ( ;$ 03/ ( :RRGZDUG/RDQ ϲ͕ϬϱϬ͕ϬϬϬ 3XEOLF )DFDGHV ,PSURY 3, 5HLPEXUVHPHQW$PRXQW 6WDUW'DWH 6HS 3KDVH, ϲ͕ϬϱϬ͕ϬϬϬ ϴϬй 0DWXUHV 6HS 3KDVH,, ϲ͕ϬϱϬ͕ϬϬϬ ϳϯй <HDUV ϭϴ 3KDVH,,, ϲ͕ϬϱϬ͕ϬϬϬ 3KDVH,9 ϲ͕ϬϱϬ͕ϬϬϬ ϲϴй 7LPHLQ <HDUV 'DWH 3D\PHQW ,QWHUHVW 3ULQFLSDO %DODQFH 3KDVH,DQG,, 3KDVH,,, SOXV,,,DQG,9 RQOLQHLQ 3KDVH,DQG ,, 3KDVH,,, 3KDVH,9 7RWDO7D[ ,QFUHPHQW )DoDGH30 LIRQO\,DQG ,, )DoDGH30 Z,,,,,, ,9 <HDU 7ELOO ,QWHUHVW 5DWH&DOF LQFUHDVH 'HF Ϯ͘ϲϱй 'HF Ϯ͘ϱϭй 'HF Ϯ͘ϭϴй 'HF ϯϬϮ͕ϰϬϱ ϯϬϮ͕ϰϬϱ ϰϭϰ͕Ϯϱϯ ϭϭϭ͕ϴϰϴ ϭ͘ϲϯй 'HF ϰϭϭ͕ϴϯϬ ϰϭϭ͕ϴϯϬ ϱϲϰ͕ϭϱϭ ϭϱϮ͕ϯϮϭ Ϯ͘ϯϳй 'HF ϰϭϭ͕ϴϯϬ ϰϭϭ͕ϴϯϬ ϱϲϰ͕ϭϱϭ ϭϱϮ͕ϯϮϭ ϯ͘ϬϬй 'HF ϰϯϭ͕ϲϭϭ ϰϯϭ͕ϲϭϭ ϱϵϭ͕Ϯϰϴ ϭϱϵ͕ϲϯϳ ϰ͘ϬϬй 'HF ϰϯϭ͕ϲϭϭ ϰϯϭ͕ϲϭϭ ϱϵϭ͕Ϯϰϴ ϭϱϵ͕ϲϯϳ ϰ͘ϳϬй 'HF ϰϯϭ͕ϲϭϭ ϱϯϬ͕Ϭϯϭ ϱϵϭ͕Ϯϰϴ ϳϯ͕ϴϮϰ ϭϭϰ͕ϯϴϱ Ϯϰϵ͕ϰϮϲ ϱ͘ϮϬй 'HF ϰϯϭ͕ϲϭϭ ϳϯϭ͕ϭϳϯ ϱϵϭ͕Ϯϰϴ ϯϲϵ͕ϲϮϭ ϭϭϰ͕ϯϴϱ ϯϰϰ͕Ϭϴϭ ϱ͘ϱϲй 'HF ϰϯϭ͕ϲϭϭ ϳϯϭ͕ϭϳϯ ϱϵϭ͕Ϯϰϴ ϯϲϵ͕ϲϮϭ ϭϭϰ͕ϯϴϱ ϯϰϰ͕Ϭϴϭ ϱ͘ϵϬй 'HF ϰϯϭ͕ϲϭϭ ϳϯϭ͕ϭϳϯ ϱϵϭ͕Ϯϰϴ ϯϲϵ͕ϲϮϭ ϭϭϰ͕ϯϴϱ ϯϰϰ͕Ϭϴϭ ϲ͘Ϯϭй 'HF ϰϯϭ͕ϲϭϭ ϳϯϭ͕ϭϳϯ ϱϵϭ͕Ϯϰϴ ϯϲϵ͕ϲϮϭ ϭϭϰ͕ϯϴϱ ϯϰϰ͕Ϭϴϭ ϲ͘ϱϮй 'HF ϰϯϭ͕ϲϭϭ ϳϯϭ͕ϭϳϯ ϱϵϭ͕Ϯϰϴ ϯϲϵ͕ϲϮϭ ϭϭϰ͕ϯϴϱ ϯϰϰ͕Ϭϴϭ ϲ͘ϱϮй 'HF ϰϯϭ͕ϲϭϭ ϳϯϭ͕ϭϳϯ ϱϵϭ͕Ϯϰϴ ϯϲϵ͕ϲϮϭ ϭϭϰ͕ϯϴϱ ϯϰϰ͕Ϭϴϭ ϲ͘ϱϮй 'HF ϰϯϭ͕ϲϭϭ ϳϯϭ͕ϭϳϯ ϱϵϭ͕Ϯϰϴ ϯϲϵ͕ϲϮϭ ϭϭϰ͕ϯϴϱ ϯϰϰ͕Ϭϴϭ ϲ͘ϱϮй 'HF ϰϯϭ͕ϲϭϭ ϳϯϭ͕ϭϳϯ ϱϵϭ͕Ϯϰϴ ϯϲϵ͕ϲϮϭ ϭϭϰ͕ϯϴϱ ϯϰϰ͕Ϭϴϭ ϲ͘ϱϮй 'HF ϰϲϯ͕ϳϰϰ ϭ͕Ϭϭϯ͕Ϭϵϰ ϱϵϭ͕Ϯϰϴ ϯϲϵ͕ϲϮϭ ϭϭϰ͕ϯϴϱ <HDU &RQWULEXWLRQ ,QWHUHVW 7RWDO 'HF 'HF 'HF 'HF 'HF 'HF 'HF 'HF 'HF 'HF 'HF 'HF 'HF (;+,%,7& 'RZQWRZQ'HYHORSPHQW$XWKRULW\ ,*$5HJDUGLQJ''$&RQWULEXWLRQVWRWKH&LW\ )RU3XEOLF3DUNLQJ6SDFHVDQG3DUNLQJ3URJUDPV LQ'RZQWRZQ)RUW&ROOLQV 'DWHG (;$ 03/ / ( EƵŵďĞƌϭ͗DĂƌĐŚϭϲϮϬϭϴ WƌŽũĞĐƚƐͬWƌŽŐƌĂŵƐƚŽďĞ&ƵŶĚĞĚ͗ ůůĞǇŶŚĂŶĐĞŵĞŶƚ͗tĞƐƚDƚŶǀĞΘK&ĂƐƚŽŶƐƚƌƵĐƚŝŽŶ ϭ͕ϬϬϬ͕ϬϬϬ͘ϬϬ ϭ͕ϬϬϬ͕ϬϬϬ͘ϬϬ EƵŵďĞƌϮ͗DĂƌĐŚϭϲ͕ϮϬϭϴ WƌŽũĞĐƚƐͬWƌŽŐƌĂŵƐƚŽďĞ&ƵŶĚĞĚ͗ ůůĞǇŶŚĂŶĐĞŵĞŶƚ͗tĞƐƚDƚŶǀĞΘK&ĂƐƚŽŶƐƚƌƵĐƚŝŽŶ ϮϬϬ͕ϬϬϬ͘ϬϬ ^ĐƵůƉƚƵƌĞŽŶ>ŽĂŶWƌŽŐƌĂŵ ϭϮ͕ϬϬϬ͘ϬϬ ϮϭϮ͕ϬϬϬ͘ϬϬ EƵŵďĞƌϯ͗ƐƚŝŵĂƚĞĚĂƚĞDĂǇϭϱ͕ϮϬϭϴ WƌŽũĞĐƚƐͬWƌŽŐƌĂŵƐƚŽďĞ&ƵŶĚĞĚ͗ ůůĞǇŶŚĂŶĐĞŵĞŶƚ͗tĞƐƚDƚŶǀĞΘK&ĂƐƚŽŶƐƚƌƵĐƚŝŽŶ ϯϲϰ͕Ϭϳϲ͘ϬϬ ĂŶǇŽŶǀĞŶƵĞŶŚĂŶĐĞŵĞŶƚĞƐŝŐŶWůĂŶWĂƌƚŶĞƌƐŚŝƉ ϯϱ͕ϬϬϬ͘ϬϬ ƌŝŵĞWƌĞǀĞŶƚŝŽŶdŚƌŽƵŐŚŶǀŝƌŽŶŵĞŶƚĂůĞƐŝŐŶ;WdͿWƌŽũĞĐƚ&ƵŶĚ ϯϮ͕ϱϬϬ͘ϬϬ ŽǁŶƚŽǁŶtĂǇĨŝŶĚŝŶŐ ϱ͕ϯϰϰ͘ϬϬ ůŬƐ>Žƚ͗ŽŶĐĞƉƚ^ƚƵĚǇ ϱϮϯ͕ϰϱϵ͘ϬϬ :ĂĐŬĞŶŶǇ,ĂŶĚƉƌŝŶƚZĞƐƚŽƌĂƚŝŽŶ ϭϱ͕ϬϬϬ͘ϬϬ KůĚdŽǁŶ^ƋƵĂƌĞWƌŽŐƌĂŵŵŝŶŐ;ĂŬĂĐƚŝǀĂƚŝŽŶͿ ϵ͕ϬϬϬ͘ϬϬ ^ƚƌĞĞƚKƵƚƌĞĂĐŚdĞĂŵ ϭϱ͕ϬϬϬ͘ϬϬ ϵϵϵ͕ϯϳϵ͘ϬϬ EƵŵďĞƌϰ͗ƐƚŝŵĂƚĞĚĂƚĞDĂǇϭϱ͕ϮϬϭϴ WƌŽũĞĐƚƐͬWƌŽŐƌĂŵƐƚŽďĞ&ƵŶĚĞĚ͗ 'ĂƚĞǁĂǇŶƚƌĂŶĐĞƐ ϳϱ͕ϬϬϬ͘ϬϬ ,ŽůŝĚĂǇ>ŝŐŚƚƐWĂƌƚŶĞƌƐŚŝƉ ϯϱ͕ϬϬϬ͘ϬϬ dƌĞĞĂŶŽƉǇ ϯ͕ϱϬϬ͘ϬϬ hƌďĂŶDŝĐƌŽͲ^ƉĂĐĞĞƐŝŐŶWůĂŶ ϮϬ͕ϬϬϬ͘ϬϬ ůůĞǇŶŚĂŶĐĞŵĞŶƚKƉĞƌĂƚŝŽŶƐΘZĞƉůĂĐĞŵĞŶƚ;ĂůůĂůůĞǇƐͿ Ϯϲϲ͕ϭϰϯ͘ϬϬ KůĚdŽǁŶ^ƋƵĂƌĞKƉĞƌĂƚŝŽŶƐΘZĞƉůĂĐĞŵĞŶƚ ϳϱ͕ϱϬϴ͘ϬϬ DƵůƚŝͲzĞĂƌZĞŝŵďƵƌƐĞŵĞŶƚƐ Ϯϲϰ͕ϳϰϭ͘ϬϬ WƌŽũĞĐƚDĂŶĂŐĞŵĞŶƚ&ĞĞƐ ϯϰ͕ϱϬϵ͘ϬϬ ϳϳϰ͕ϰϬϭ͘ϬϬ dŽƚĂů>KƌĂǁƐ Ϯ͕ϵϴϱ͕ϳϴϬ͘ϬϬ ϮϬϭϴ>ŝŶĞŽĨƌĞĚŝƚƌĂǁƐ ŽǁŶƚŽǁŶĞǀĞůŽƉŵĞŶƚƵƚŚŽƌŝƚǇ (;+,%,7& (ŝŶƚZĞƐƚŽƌĂƚŝŽŶ ŝŶƚZĞƐƚŽƌĂƚ ;$03/( ƌŽŐƌĂŵŵŝŶŐ;ĂŬĂĐƚŝǀĂƚŝŽŶͿ ƌŽŐƌĂŵŵŝŶŐ;ĂŬĂĐƚŝǀĂƚŝŽ Ăŵ -1- ORDINANCE NO. 066, 2018 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE ESTABLISHMENT OF A REVOLVING LINE OF CREDIT TO BE PAID SOLELY WITH DOWNTOWN DEVELOPMENT AUTHORITY TAX INCREMENT FUNDS FOR A SIX YEAR PERIOD IN THE AMOUNT OF UP TO FIVE MILLION DOLLARS PER DRAW TO FINANCE DOWNTOWN DEVELOPMENT AUTHORITY PROJECTS AND PROGRAMS IN ACCORDANCE WITH THE DOWNTOWN DEVELOPMENT AUTHORITY PLAN OF DEVELOPMENT AND APPROVING RELATED DOCUMENTS WHEREAS, on April 21, 1981, the City Council adopted Ordinance No. 046, 1981, establishing the Fort Collins, Colorado, Downtown Development Authority (“DDA”); and WHEREAS, C.R.S. 31-25-807 (3) (a) (II) provides that DDA tax increment funds may only be used to pay some form of indebtedness incurred by the City; and WHEREAS, the establishment of a line of credit with a banking institution would qualify as debt within the meaning of C.R.S. 31-25-807 (3) (a) (II); and WHEREAS, at the November 7, 2006, general election, a City-initiated measure to authorize the issuance of bonds for DDA projects through debt of up to $150,000,000, with a repayment cost of up to $250,000,000, was approved by the voters; and WHEREAS, in 2012, the Board of Directors of the DDA recommended to the City Council through the adoption of Resolution 2012-02, the establishment of a revolving line of credit for a six-year period in the amount of one million dollars annually to finance DDA projects and programs in accordance with its approved Plan of Development, the Downtown Plan and the Downtown Strategic Plan; and WHEREAS, in 2012, the City Council adopted Resolution 2012-081, approving an intergovernmental agreement between the City and the DDA to govern the use of the DDA line of credit, and Ordinance No. 089, 2012, authorizing the establishment of a revolving line of credit, as described above; and WHEREAS, the City and the DDA entered into that intergovernmental agreement, and implemented its terms, and the line of credit arrangement established in 2012 is scheduled to expire at the end of 2018; and WHEREAS, in order to renew and update the line of credit arrangement, staff of the City and the DDA have negotiated a new instrument and related documents that would renew the line of credit for a six-year period, and increase the limit on the line of credit limit to a maximum draw of five million dollars to reduce the number of draws required to support DDA activities, thus reducing the inefficiencies in the original arrangement; and WHEREAS, the Board of Directors of the DDA has recommended to the City Council through the adoption of Resolution 2018-02, the establishment of a revolving line of credit for a six-year period in the maximum amount of five million dollars per draw (“Line of Credit”), with such other terms and conditions as are set forth in the financing documents, a copy of which are -2- on file in the office of the City Clerk and available for public inspection (the “LOC Documents”), to finance DDA projects and programs in accordance with its approved Plan of Development, the Downtown Plan and the Downtown Strategic Plan; and WHEREAS, the establishment of the Line of Credit for such purpose would be financially beneficial for the DDA and the community as a whole; and WHEREAS, the City Council has also approved Resolution 2018-XXX, approving an intergovernmental agreement between the City and the DDA to govern the use of the Line of Credit. NOW, THEREFORE, BE IT ORDAINED 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 the City Manager is hereby authorized to establish the Line of Credit as described in this Ordinance and to execute the LOC Documents therefor in substantially the forms on file in the office of the City Clerk, together with such additional terms and conditions as the City Manager, in consultation with the Chief Financial Officer and the City Attorney, deem necessary and appropriate to protect the interests of the City or effectuate the purpose of this Ordinance. Introduced, considered favorably on first reading, and ordered published this 15th day of May, A.D. 2018, and to be presented for final passage on the 5th day of June, A.D. 2018. __________________________________ Mayor Pro Tem ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 5th day of June, A.D. 2018. __________________________________ Mayor Pro Tem ATTEST: _______________________________ City Clerk ϲϮ͕ϭϲϬ ϲ͘ϱϮй 'HF ϱϵϭ͕Ϯϰϴ ϭ͕Ϭϳϱ͕Ϯϱϰ ϱϵϭ͕Ϯϰϴ ϯϲϵ͕ϲϮϭ ϭϭϰ͕ϯϴϱ Ͳ ϲ͘ϱϮй ϭϰ͕Ϯϱϳ͕Ϭϰϴ $9* 7LPHLQ <HDUV 'DWH 3D\PHQW ,QWHUHVW 3ULQFLSDO %DODQFH 'HF ϲ͕ϬϱϬ͕ϬϬϬ .H\DVVXPSWLRQV 'HF 'HF 'HF ,QVFHQDULRV,,,DQG,9DVVXPHVRQOLQHGXULQJWD[\HDUSD\PHQW\HDU 'HF 'HF 'HF 3KDVH,DQG,,7,)ILJXUHVDUHIURPODWHVWFDOFXODWLRQ)LJXUHVDUHFDSSHGSHUFRQWUDFW 'HF 3KDVH,,,DQG,97,)ILJXUHVDUHIURPH[KLELWVWRRULJLQDODJUHHPHQW 'HF 'HF 'HF 'HF 'HF 'HF 'HF 'HF 'HF 'HF 'HF 7D[,QFUHPHQW5HYHQXH )DoDGH3D\PHQW 7ELOOUDWHLVPRVWVLJQLILFDQWLQSXW$VVXPHVUDWHRIZKLFKLVWKHUDWHDW 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N Whitcomb St C a j e tan S t 10th St Canyon Ave O s i a nde r S t Cowan St N Meldrum St Woo d war d Wa y S Mason St Jerome St Colorado St Main St Gold Dr Walnut St P a scal S t H o ffm an Mill Rd O v al D r Endicott St S Sherwood St 11th St Mull e i n D r Sycamore St Blue Spruce Dr Bellflower Dr East Dr Frontage Rd E Laurel St Woo d l awn D r Lesser Dr Pine St Cordova Rd E Magnolia St Lilac Ln Martinez St N Mason St El m St W Plum St L o n gleaf Ln Trujillo St Mas o n Ct Rivend a l Dr Lopez Ct Eastdal e D r Poudre River Dr Li n d e n Ce n ter Dr Rembrandt Dr Locust Ct La Garita Ln Baum St Sangre De Cristo Ln Kenroy Ct E Magnolia St E Laurel St Frontage Rd E Laurel St Pine St Downtown Development Authority Boundary Parcels DDA Boundary Printed: October 01, 2017 1 inch = 1,320 feet . 0 0.125 0.25 0.5 Miles Amended: March 7, 2017 ATTACHMENT 1