Loading...
HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 12/05/2017 - SECOND READING OF ORDINANCE NO. 165, 2017 CREATINGAgenda Item 6 Item # 6 Page 1 AGENDA ITEM SUMMARY December 5, 2017 City Council STAFF Patrick Rowe, Redevelopment Program Coordinator John Duval, Legal SUBJECT Second Reading of Ordinance No. 165, 2017 Creating and Establishing the Midtown Business Improvement District. EXECUTIVE SUMMARY This Ordinance, unanimously adopted on First Reading on November 21, 2017, creates and establishes the Midtown Business Improvement District, appoints the initial members of the Board of Directors of the District, approves the District's Initial Operating Plan and Budget; and designates the area as a location for new business or commercial development. The Initial Operating Plan has been revised between First and Second Reading of the Ordinance to address issues that were raised by Council at First Reading. The revised Initial Operating Plan is attached as Exhibit “E” to the Ordinance and the revisions are on page 6 of the Plan. The issues addressed in these revisions are to clarify that: (1) the District will be operated in compliance with all applicable Colorado laws, including the Fair Campaign Practices Act; (2) authorized District improvements will be available and open to the public in a non- discriminatory manner; and (3) the District cannot provide security services now or in the future unless authorized to so by the City Council. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. First Reading Agenda Item Summary, November 21, 2017 (w/o attachments) (PDF) Agenda Item 25 Item # 25 Page 1 AGENDA ITEM SUMMARY November 21, 2017 City Council STAFF Patrick Rowe, Redevelopment Program Coordinator John Duval, Legal SUBJECT Public Hearing and First Reading of Ordinance No. 165, 2017 Creating and Establishing the Midtown Business Improvement District, Appointing the Initial Members of the Board of Directors of the District, Approving the District's Initial Operating Plan and Budget; and Designating the Area as a Location for New Business or Commercial Development. EXECUTIVE SUMMARY The purpose of this item is to conduct a public hearing on a petition for the creation of a business improvement district within the Midtown area of Fort Collins. The purpose of the proposed Midtown Business Improvement District (the “Midtown BID,” or “BID”) is to “leverage public sector investments and provide private sector stakeholders in the area with a stronger platform through which to advocate for-and directly fund-needed improvements as Midtown comes into a new era.” STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION A business owners group within Midtown Fort Collins desires to form the Midtown BID. Under Colorado’s Business Improvement District Act (the “Act”), the Midtown BID can be created by the City Council by ordinance, after conducting a noticed public hearing, if the organizers of the BID have presented to the City a petition meeting certain form and content requirements required in the Act. The Act also requires that the petition must be signed by property owners in the proposed boundaries of the BID who own properties that constitute not less than 50% of the total assessed value of properties in the BID’s proposed boundaries and not less than 50% of all the acreage in the BID. The business owners group has circulated and submitted to the City Clerk a petition signed by 35 property owners owning commercial property within the boundaries of the proposed Midtown BID. This petition is attached. (Attachment 4) The Petition meets the form and content requirements of the Act by: (1) stating the proposed name for the Midtown BID; (2) providing a general description of the boundaries and service area of the BID; (3) providing a general description of the types of services or improvements or both to be provided by the BID; (4) stating the names of three persons who represent the petitioners and who have the power to enter into agreements concerning the BID’s organization; and (5) stating a request for the organization of the Midtown BID. The Petition also appears to be signed by persons and entities who own property within the proposed boundaries representing 63% of the total assessed value within the Midtown BID’s proposed boundaries and 55% of the total acreage within the boundaries. These percentages satisfy the Act’s two 50%-requirements for the creation ATTACHMENT 1 Agenda Item 25 Item # 25 Page 2 of the Midtown BID and are evidenced in the attached “Midtown BID Assessed Values and Acreage Spreadsheet”. (Attachment 5) However, it should be noted that the signatures on the Petition are dated in June or July of 2016 except for one Petition section which has a signature dated in June of 2015. Because these signatures are more than a year old and due to the fact that the currently proposed Midtown BID boundaries were reduced in size from what was proposed in the Petition as originally drafted, the proponents have also circulated an “Affirmation Concerning the Boundaries and Service Area of the Proposed Midtown Business Improvement District in the City of Fort Collins, Colorado” (“Affirmation”). Each of the attached Petition sections is accompanied by an Affirmation that has been signed by a representative of the petitioning property owner to confirm that the property owner continues to support the creation of the Midtown BID and does not object to the reduction of the BID’s boundaries. Under the Act, it is up to the City Council to determine whether the Petition satisfies the Act’s form, content and signing requirements. If the Council determines that such requirements have been satisfied, it may, in its sole discretion, adopt the Ordinance to create and organize the Midtown BID. If it determines, however, that any of these requirements is not satisfied, it should decline to adopt the Ordinance. In the event the Council does not adopt the Ordinance, staff will prepare for Council’s consideration at a later meeting a resolution setting forth the Council’s findings and grounds for not adopting the Ordinance. As proposed, the purpose of the Midtown BID is to “leverage public sector investments and provide private sector stakeholders in the area with a stronger platform through which to advocate for - and directly fund - needed improvements as Midtown comes into a new era.” The BID’s operations would be funded through a special assessment based on frontage that would apply to the commercial properties along College Avenue and East Foothills Parkway (the portion of Foothills Parkway that runs through the Foothills Mall) between Drake Road and Boardwalk Drive (Attachment 1). Pursuant to the Act, no residential property is included within the BID’s boundaries. (Note: The proposed boundary has been reduced in size from an earlier proposal to focus the Midtown BID in the area with the strongest and most active support). The proposed Midtown BID cites the following goals and objectives in its proposed Initial Operating Plan (Attachment 2):  Create a collective voice to accomplish the goals of the neighborhood, provide leadership for the neighborhood, and champion the vision of the Midtown.  Serve as the activator of the Midtown neighborhood, providing programming, marketing and activities year-round.  Purposefully improve and advance Midtown and facilitate economic growth and overall increased vitality in Midtown.  Develop and establish Midtown’s character and personality, communicate it succinctly, and bring it to life.  Create synergistic relationships with the City to create an accessible and desirable place for locals and visitors.  Find interesting, active and creative uses for shops, sidewalks and open spaces that can boost the economy, thus diversifying the mix and adding new business opportunities.  Provide awareness, recognition, promotion and education about Midtown.  Keep Midtown safe, clean and welcoming. Agenda Item 25 Item # 25 Page 3  Be an administrative umbrella that brings the neighborhood together and maximizes funding opportunities for the future of Midtown. Midtown BID’s operations and undertakings will be funded through a special assessment of properties within the district boundary based on College Avenue and East Foothills Parkway frontage. The assessment is based on $10 per linear foot of frontage, and is anticipated to raise approximately $170,000 annually. The BID will have the ability to raise the assessment annually by an amount up to but not to exceed the consumer price index. The Act authorizes the Council to appoint a board of between five (5) and eleven (11) members to govern the Midtown BID. The initial BID board as proposed will consist of 9 members. The BID formation group has recommended a list of individuals to be appointed as the initial board. The BID formation group made its recommendation based on whom it believes to be interested and qualified, and whom will broadly represent the BID’s interests (for a list of these individuals, please refer to pages 4 and 5 of Attachment 3). The term of office shall be staggered to encourage continuity of governance. The length of the term is staggered between two (2) and three (3) years. The Act provides that future board appointments are to be made by City Council. BIDs in Colorado may exist in perpetuity. As proposed in the Initial Operating Plan, the Midtown BID will have an initial ten-year term. This will allow stakeholders to evaluate the BID’s effectiveness at the end of this initial term. If the BID is successful, as anticipated, it will request renewal from City Council. The Act requires the Midtown BID to file an annual operating plan and budget with the City on or before September 30th of each year. The City reviews and approves these documents as provided by law. Midtown BID Formation Process Key dates of the Midtown BID’s proposed formation schedule are as follows: October 16, 2017 Completed petitions submitted to City (Occurred) November 7, 2017 Public Hearing set for November 21, 2017 (Occurred) November 21, 2017 Public Hearing and First Reading of BID formation ordinance (Tonight’s Item) December 5, 2017 Second Reading of BID formation ordinance Following formation, the Midtown BID will conduct a TABOR election to address the BID’s future revenues and expenditures. The BID itself will conduct this election process in coordination with Larimer County. CITY FINANCIAL IMPACTS A business improvement district is an independent entity and will not impact the City financially. Note: The City has agreed to loan the BID formation group up to $30,000 to assist with formation which will be paid back upon formation and the BID’s first assessment collection. Consistent with completed milestones, to date only $13,000 has been provided to the BID formation group. The balance will be made available following formation and prior to the BID’s TABOR election. PUBLIC OUTREACH As required by the Act, all property owners within the Midtown BID’s proposed service area and boundaries have been mailed formal notice of the public hearing and the general public has been notified through a notice published in the Coloradoan on November 11, 2017. Agenda Item 25 Item # 25 Page 4 ATTACHMENTS 1. Boundary Map (PDF) 2. Operating Plan (PDF) 3. Proposed Board (PDF) 4. BID petitions (PDF) 5. BID Assessed Valuations and Acreage (PDF) 6. Powerpoint presentation (PDF) -1- ORDINANCE NO. 165, 2017 OF THE COUNCIL OF THE CITY OF FORT COLLINS CREATING AND ESTABLISHING THE MIDTOWN BUSINESS IMPROVEMENT DISTRICT, APPOINTING THE INITIAL MEMBERS OF THE BOARD OF DIRECTORS OF THE DISTRICT, APPROVING THE DISTRICT’S INITIAL OPERATING PLAN AND BUDGET, AND DESIGNATING THE AREA AS A LOCATION FOR NEW BUSINESS OR COMMERCIAL DEVELOPMENT WHEREAS, the City Council (the “Council”) of the City of Fort Collins, Colorado (the “City”), has received a petition for the organization (the “Petition”) of the Midtown Business Improvement District (the “District”) within the City; and WHEREAS, based upon the Petition and other evidence presented to Council, the Council finds that Petition is in proper form and has been signed in conformity with the Business Improvement District Act, C.R.S. Section 31-25-1201 et seq., as amended (the “Act”); and WHEREAS, the Council further finds and determines that the signatures on the Petition are genuine, and that the signatures of parties thereon represent the persons who own real or personal property in the service area of the proposed District having a valuation for assessment of not less than fifty percent of the valuation for assessment of all real and personal property in the service area of the proposed District and who own at least fifty percent of the acreage in the proposed District; and WHEREAS, the Petition sets forth, among other things: (a) The name of the proposed District, which is: “Midtown Business Improvement District;” (b) A general description of the boundaries and service area of the proposed District which is: the boundaries include parcels fronting South College Avenue from Prospect Road in the north to Harmony Road in the south, as well as those fronting East Foothills Parkway between East Swallow Road and South College Avenue in the City. A map of the proposed District’s boundary is also attached to the Petition and in the Petition is a statement that the boundaries of the District include all properties within the service area perimeter which are classified as commercial property as defined in C.R.S. Section 31-25-1203(2) of the Act, all of which is located in the City (the “Service Area”); (c) A general description of the types of services or improvements or both to be provided by the proposed District; (d) The names of three persons to represent the petitioners, who have the power to enter into agreements relating to the organization of the District; (e) A request that the Council appoint the initial members of the Board of Directors of the District pursuant to C.R.S. Section 31-25-1209(1)(b); -2- (f) A request that the Council consider the District’s initial operating plan and budget for approval in accordance with Section 31-25-1211, C.R.S.; and (g) A request that the Council approve the organization of the District; and WHEREAS, the Council has determined that it appears the allegations of the Petition are true; and WHEREAS, the Council has determined that the types of services or improvements to be provided by the proposed District are of the type which best satisfy the purposes of the Act; and WHEREAS, the Petition was filed with a cash deposit in an amount sufficient to cover all municipal expenses associated with these proceedings in case the organization of the proposed District is not effected; and WHEREAS, the Service Area of the proposed District is entirely within the City; and WHEREAS, the Service Area of the proposed District is not located within any other existing business improvement district; and WHEREAS, a map of the boundaries of the Service Area of the proposed District is attached hereto as Exhibit “A”, a legal description of the Service Area of the proposed District is attached hereto as Exhibit “B”, and said exhibits are incorporated herein by reference. 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 following a duly noticed and held public hearing, as described below, and upon consideration of a recommendation from City staff that an ordinance be enacted creating the District, the Council further finds and determines: (a) That the proposed District was initiated by a Petition filed in the Office of the City Clerk of the City of Fort Collins, on the 16th day of October 2017, that the Petition was sufficient, that the allegations in the Petition are true, that the Petition is in due and regular form, and the Petition was properly executed; (b) That the Council has heretofore fixed a place and time for a hearing on the Petition, which hearing was scheduled for Tuesday, November 21, 2017, at 6:00 p.m., in the City Council Chambers, City Hall West, 300 LaPorte Avenue, Fort Collins, Colorado; (c) That the proponents of the District mailed notice of such hearing to each property owner within the boundaries of the proposed District in accordance with C.R.S. Section 31-25- 1206 and as evidenced in the “Certification of Mailing of Public Notice of Hearing on Petition -3- for the Organization of a Business Improvement District” attached as Exhibit “C” and incorporated by reference; (d) That a notice of the hearing was also duly published on November 11, 2017, in the Fort Collins Coloradoan in accordance with C.R.S. Section 31-25-1206 and as evidenced in the “Affidavit of Publication” attached as Exhibit “D” and incorporated by reference; (e) That an initial operating plan (the “Initial Operating Plan”) and budget (the “Budget”) were filed in the Office of the City Clerk of the City of Fort Collins as part of the Petition and have been reviewed by the Council and are hereby approved; That the initial operating plan and budget (the “Budget”) were filed in the Office of the City Clerk of the City of Fort Collins, and that initial operating plan has been revised to read as shown in Exhibit “E” attached hereto and incorporated herein by reference (the “Initial Operating Plan”); (f) That the Initial Operating Plan, as shown in Exhibit “E”, and the Budget on file with the City Clerk have been reviewed by the Council and are both hereby approved; (fg) That the proposed District is lawful and necessary, should be created and established, and that the proposed District does not include territory that is within any other business improvement district; and (gh) That the Service Area of the proposed District is hereby designated, after notice and public hearing, as a location for new business or commercial development. Section 3. The District is hereby created, organized, and established for the purposes and shall have the powers set forth in the Act, except as otherwise modified in this Ordinance. All services and improvements provided by the District shall be undertaken in accordance with the Act and the District’s Initial Operating Plan, as the Plan may be amended from time to time with the approval of the Council as provided in C.R.S. 31-25-1211. In addition, any amendments to this Ordinance shall be effective only when approved by the Council. Section 4. The Service Area of the District is depicted in Exhibit “A” and legally described in Exhibit “B”. The District is located entirely within the City of Fort Collins and a general description of the Service Area is as follows: the boundaries include parcels fronting South College Avenue from Prospect Road in the north to Harmony Road in the south, as well as those fronting East Foothills Parkway between East Swallow Road and South College Avenue in the City. The boundaries of the proposed District shall consist of all “commercial property” now or hereafter located within the Service Area, as that term is defined at C.R.S. Section 31-25- 1203(2), but specifically excluding all taxable personal property. The District may provide services and improvements inside and outside of the Service Area as set forth in the District’s Initial Operating Plan, as amended. Section 5. Inclusion and exclusion of property into or from the District shall be completed as provided in the Act. -4- Section 6. The District shall be a quasi-municipal corporation and political subdivision of the State of Colorado with all powers and responsibilities thereof. The District shall hereafter have the corporate name specified in the Petition: Midtown Business Improvement District. Section 7. Pursuant to C.R.S. Section 31-25-1209(1)(b), the Board of Directors of the District (the “Board”) shall consist of nine (9) electors of the District, appointed by the Mayor and confirmed by City Council. Each member of the Board shall be an elector of the District, as that term is defined at C.R.S. Section 31-25-1203(4)(a). The initial members of the Board are hereby appointed and confirmed (and shall take office upon qualification): (a) Steve Taylor for a term ending December 31, 2019, (b) Rayno Seaser for a term ending December 31, 2020, (c) Mike Dellenbach for a term ending December 31, 2019, (d) David Fritzler for a term ending December 31, 2020, (e) Spiro Palmer for a term ending December 31, 2019, (f) Luke McFetridge for a term December 31, 2020, (g) John Gaffney for a term ending December 31, 2019, (h) Lauren DeRosa for a term ending December 31, 2020, and (i) Carrie Baumgart for a term ending December 31, 2019. Section 8. In accordance with C.R.S. Section 31-25-1209(1)(b), members of the Board shall serve at the pleasure of the Council. Meetings of the Board shall be subject to the Colorado Open Meetings Law. A majority of the Directors in office constitute a quorum. Officers of the District shall include a Chairperson and President, Vice-President, Secretary, Assistant Secretary and Treasurer. The Directors shall elect the District’s officers. Within thirty (30) days after a vacancy occurs or as otherwise provided by law, a successor shall be appointed by the Council by ordinance. Section 9. Within thirty (30) days of the effective date of this Ordinance, or within thirty (30) days of each subsequent appointment to the Board by the City Council by ordinance, each member of the Board shall appear before an officer authorized to administer oaths and take an oath that he or she will faithfully perform the duties of his or her office as required by law and will support the constitution of the United States, the constitution of the State of Colorado, and laws made pursuant thereto. The Board shall carry out the responsibilities required of such Board by the Act and other applicable law. Section 10. The Initial Operating Plan and the Budget are hereby approved by the City as the District’s 2017 and 2018 operating plan and budget as required by the Act. The Board will formally adopt the District’s annual budgets following the effective date of this Ordinance in compliance with the Colorado Local Government Budget Law. Once formally adopted by the Board, a copy of the District’s budgets will be provided to the City’s Economic Health Office. The budgets for subsequent years shall be incorporated into the District’s annual operating plan submitted to the City for review and approval on or before September 30th of each year (commencing with September 30, 2018), as required by C.R.S. Section 31-25-1211. The District is authorized to proceed with elections for any purpose authorized by the Act and the Initial -5- Operating Plan. The District shall have the power to issue debt, subject to the limits and restrictions on the same as set forth in the Initial Operating Plan and electoral approval. The District shall have the power to provide improvements as defined in C.R.S. Section 31-25- 1203(5), and services as described in C.R.S. Section 31-25-1212, as limited by the Initial Operating Plan. Section 11. As provided in the Initial Operating Plan, the initial term of the District shall be for ten (10) years from the effective date of this Ordinance (the “Termination Date”). If the Council does not approve an amendment to the Initial Operating Plan and this Ordinance to extend this initial term, the District’s existence shall cease on the Termination Date. Section 12. The actions of the City Clerk and petitioner in setting and providing public notice of the public hearing on the sufficiency of the Petition and in furtherance hereof are hereby ratified and confirmed. Introduced, considered favorably on first reading, and ordered published this 21st day of November, 2017, and to be presented for final passage on the 5th day of December, 2017. Mayor ATTEST: City Clerk Passed and adopted on final reading on the 5th day of December, 2017. Mayor ATTEST: City Clerk EXHIBIT B EXHIBIT C EXHIBIT D 1 Midtown Business Improvement District (BID) Initial Operating Plan 2017-2018 BID NAME The BID shall operate as the Midtown Business Improvement District (BID). LEGAL AUTHORITY A BID in Colorado is organized pursuant to the Business Improvement District Act, Section 31-25-1201 et seq., Colorado Revised Statutes. A BID is legally created via the following process:  Stakeholders acquire petition signatures of commercial property owners representing a majority of the total assessed value and a majority of the total acreage of the proposed BID area.  The City adopts an ordinance establishing the district, following notice and a public hearing. ABOUT MIDTOWN Midtown is a growing, thriving hub in central Fort Collins. The properties adjacent to College Avenue, from approximately Prospect Road south to Harmony Road, as well as the Foothills Mall, make up Midtown. In total, the corridor spans slightly over three miles. Today, Midtown is an active place with a wide range of commercial activities and a limited amount of residential and institutional uses. Automobile dealerships make up a significant portion of the business mix, while big box retailers dominate the shopping offer. Within the last few years, there has been renewed commitment to and interest in supporting a revitalized Midtown with a focus on a long-term strategy to support the growth of the district, both physically and economically. THE VISION FOR MIDTOWN Midtown is on the cusp of big change. With the opening of the new Foothills Mall and significant investment taking place throughout the corridor, stakeholders envision a refreshed future for the district, one that reinvigorates the area with destination retail, higher-density development, commercial opportunities and unique urban living opportunities. A distinctive identity, placemaking, events, activities and people-oriented uses will create a new shopping and entertainment hub in the heart of Fort Collins, providing distinctive options and opportunities for locals and visitors to the community. THE BID’S ROLE IN MIDTOWN The development of the Midtown BID provides an opportunity to create a sustainable funding source to leverage public sector investments and provide private sector stakeholders in the area with a stronger platform through which to advocate for – and directly fund – needed improvements as Midtown comes into a new era. The Midtown BID will:  Create a collective voice to accomplish the goals of the neighborhood, provide leadership for the neighborhood, and champion the vision of Midtown.  Serve as the activator of the Midtown neighborhood, providing programming, marketing and activities year-round.  Purposefully improve and advance Midtown and facilitate economic growth and overall increased vitality in Midtown.  Develop and establish Midtown’s character and personality, communicate it succinctly, and bring it to life.  Create synergistic relationships with the City of Fort Collins to create an accessible and desirable place for locals and visitors. EXHIBIT E 2  Find interesting, active and creative uses for shops, sidewalks and open spaces that can boost the economy, thus diversifying the mix and adding new business opportunities.  Provide awareness, recognition, promotion and education about Midtown.  Keep Midtown safe, clean and welcoming.  Be an administrative umbrella that brings the neighborhood together and maximizes funding opportunities for the future of Midtown. BID BOUNDARIES The Midtown BID includes parcels fronting South College Avenue from Drake Road in the north to Boardwalk Drive in the south, as well as those fronting East Foothills Parkway between East Swallow Road and South College Avenue in the City of Fort Collins, County of Larimer, State of Colorado, and illustrated by the boundary attached in EXHIBIT A. These boundaries are more particularly described by the attached database of parcels within the BID boundaries and their legal descriptions as EXHIBIT B. BID SERVICES The specific services that the BID will fund have been developed and prioritized by the business and property owners of Midtown, and include:  Midtown Promotion, Management, and Business Support: The BID will be the go-to resource for Midtown, providing leadership and business support, while championing stakeholders’ needs to create an environment that’s welcoming to the larger community and visitors. Projects to support the stakeholders will include: - Dedicated staff that can manage Midtown, advocate for Midtown needs, and focus on leveraging resources and improvements for the area. - Promotion of Midtown commercial sector development that supports strategic economic growth and creates a vibrant environment in which Midtown businesses can thrive. - Supplementing the BID budget and identifying strategic funding opportunities to leverage and enhance the base assessments collected from year to year. - Building partnerships and developing strategies to increase community participation, leadership and coordination, including specifically partnerships with the City of Fort Collins, the Fort Collins Downtown Development Authority, and the Downtown Fort Collins Business Association. - Providing business support for Midtown businesses, serving as the “concierge” for all things Midtown and helping businesses succeed by providing them with useful tools and resources, including tracking policies, data, and other useful information. - Shaping the retail, restaurant and overall storefront experience in Midtown by developing and implementing a strategy for strengthening the offer on the ground level and enhancing the existing business mix in Midtown.  Midtown Branding, Marketing, and Activation: The BID will develop and deliver a unique experience that encourages locals and visitors to explore Midtown and establish a strong identity that is recognizable and highlights the distinctive Midtown offer. Projects will include: - Development of an authentic, compelling and clear brand for Midtown that uniquely identifies its offer and potential. - Producing targeted marketing and messaging to the community and visitors. - Developing year-round programming, events and activities that draw in diverse demographic groups to experience and explore Midtown and give them a reason to stay, explore and spend money in the district. 3 - Facilitating events that drive traffic into businesses and leveraging partnerships with Midtown stakeholders. - Public and community relations in support of growing the Midtown corridor that help promote why Midtown is a destination in its own right.  Midtown Placemaking and Maintenance: The BID will work to activate the public realm in Midtown and develop a clean, safe and friendly environment, offering enhancements and amenities that create a welcoming destination and support larger-scale infrastructure projects proposed for the area. Projects will include: - Creation of a unique Midtown ambiance and sense of place that is safe, accessible, walkable and easy to park. - Development of a unifying aesthetic for Midtown’s public spaces and right of way through the addition of public realm amenities throughout Midtown, including more benches, bike racks, public art and trash/recycling cans. - Investments in unique Midtown wayfinding signage and gateways that create a sense of place and help guests explore the area whether by car, by bicycle, or on foot. - Adding color and vibrancy to the district by funding banners, holiday lighting and public art. - Sidewalk cleaning and power washing, litter and weed cleanup and graffiti removal as well as snow removal at intersections and critical public access areas. - Greening, including planting and maintaining flowers, pocket parks and other green spaces. - Working with City of Fort Collins to complement existing projects and maintenance efforts and to establish new synergistic opportunities. BID ASSESSMENT METHOD AND BUDGET The BID will utilize an assessment method that is based upon linear frontage of a property on College Avenue and Foothills Parkway within the BID boundary. The initial assessment will be $10 per linear foot, annually. Only commercially-assessed properties will be included. The BID will raise approximately $170,000 in its first year of operations. Additionally, the BID will have the ability to raise the assessment annually not to exceed the Consumer Price Index for all Urban Consumers (CPI-U) for the Denver-Boulder-Greeley, Colorado metropolitan area. This decision will be at the discretion of the BID board. In the first year of BID operations, it is proposed that the BID would invest resources to undertake the following five key projects: 1. Develop the Midtown brand and identity 2. Establish a Midtown-branded wayfinding and signage program, including installing gateways into the Midtown area 3. Hire full-time staff to work specifically for Midtown, serving as a liaison to stakeholders and an advocate to the City of Fort Collins on matters critical to Midtown’s future 4. Develop and implement a program of year-round events to be produced in partnership with local stakeholders 5. Design and implement placemaking enhancements, including holiday lighting, public art, banners and flowers Bringing in revenue and contributions in addition to the BID assessment will increase impact and help the organization to best leverage investments into Midtown. To that end, the BID will work to procure supporting funding from the City of Fort Collins as well as grants, donations, sponsorships, 4 memberships, fee-for-service projects, crowdsourcing and partnerships on top of the BID special assessment. The BID Board, with City approval, would determine the annual operating budget each year of BID operations, based upon the priorities set out in this plan. Properties adjacent to, but not within the BID boundaries, may elect to participate in the BID. Upon request, the BID would provide technical assistance to help. To do so, the owners of such properties would be required to file a written petition with the City of Fort Collins, requesting that their property be included in the BID. The petition shall be accompanied by a deposit of money sufficient to pay all costs of the inclusion or exclusion proceedings. Public notice will be given, a public hearing will be held and an ordinance may be adopted by Fort Collins City Council. The determination of assessment for properties joining the BID which do not have frontage on either College Avenue or Foothills Parkway shall be assessed the same frontage rate as the rest of the BID for their particular frontage on the street they are located. BID BONDING As allowed by law, the BID may issue bonds or other multiple-year financial obligations only if the BID is authorized to do so by its operating plan, budget and its voters in a future election. The election must comply with all applicable state requirements, including the TABOR Amendment, and would limit the amount of debt that may be issued to no more than the amount that is approved by the BID voters. BID GOVERNANCE The BID statute allows for a board of 5 to 11 members who are BID electors. The Midtown BID board will initially consist of nine appointed members from the Midtown BID area. The Midtown BID recommends that City Council appoint the following initial board members: Board Member Affiliation Rationale for Inclusion on Board Steve Taylor Hot Corner Concepts Long standing Fort Collins business owner and resident who has participated in the Old Town DDA and will help represent the restaurant users along the corridor Rayno Seaser The Egg & I Long standing Fort Collins business owner and resident who has participated and will also help represent the restaurant users along the corridor Mike Dellenbach Dellenbach Chevrolet Long standing Fort Collins business owner and resident who will help represent the car dealers along the corridor David Fritzler BBVA Compass Well established and respected member of the business community who will help represent the financial 5 institutions along the corridor Spiro Palmer Palmer Properties Long standing Fort Collins business owner and resident who will help represent the shopping centers and general businesses along the corridor Luke McFetridge NewMark Merrill Mountain States President of the SFCBA leading the efforts to form the BID and will remain on the Board to see the vision through John Gaffney Foothills Mall GM of Foothills Mall, representing a catalyst project in Midtown and demonstrating the Mall’s commitment to the BID by serving on the board Lauren DeRosa Wild Birds Long standing resident and business owner in Fort Collins and will help represent the business lessees Carrie Baumgart Markley Motors Chief Operating Officer of Markley Motors representing the car dealers in the district The terms of office shall be staggered to encourage continuity in BID governance. The maximum length of a term is three (3) years and the consecutive term limit shall be two (2) terms. After a member has fulfilled two consecutive terms, that person may not be a member of the Midtown BID governing body for three (3) years before being reappointed. BID MANAGEMENT STRUCTURE The Midtown BID expects to work with the South Fort Collins Business Association (SFCBA) to deliver its services and hire staff. The SFCBA is a 501(c)(6) organization that supports the development of Midtown Fort Collins. BID TERM BIDs in Colorado may be perpetual. However, the Midtown BID will have an initial ten-year term. This will allow for property and business owners to evaluate the BID’s effectiveness at the end of the term. If the BID is deemed successful, the BID Board will request that the City Council renew the BID by ordinance after the initial period. If the BID is not considered to be successful, it will sunset at the end of the initial term. CITY SERVICES BID services will be designed to supplement existing City services and will be in addition to City services that are currently provided in Midtown. BID services will not replace any existing City services. 6 The Midtown BID will provide a number of benefits to the City of Fort Collins, including:  A collective leader and champion for the vision of Midtown, and clear partner with which the City can work  Help the City of Fort Collins advance its key strategic objectives  Clear economic benefits, including but not limited to: - Increased sales revenue through the activation, marketing and promotion of Midtown creating more visitors and more spending in the area - Development of Midtown as an entertainment and shopping hub - Interesting, active and creative uses for shops, sidewalks and open spaces  Opportunity to further demonstrate the commitment to Midtown outlined in the City’s Midtown Plan  Create a second activity center in Fort Collins and a “place” beyond downtown in Fort Collins for visitors and locals  Beautification of the City through a refreshed and invigorated area ANNUAL REVIEW The BID Act requires the BID to file an annual operating plan and budget with the City on or before September 30 of each year. The City will review and approve the operating plan and budget as provided by law. DISSOLUTION Under Colorado law, the BID may be dissolved following a public hearing if property owners representing at least 50% of acreage within the BID and at least 50% of total assessed value within the BID submit petitions for dissolution to City Council. City Council also retains discretion to initiate dissolution proceedings if the BID fails to submit an operating plan and budget for two successive years. COMPLIANCE WITH APPLICABLE LAWS The BID is a quasi-municipal corporation and political subdivision of the State of Colorado. Accordingly, in addition to the specific requirements of the BID Act and this operating plan, the BID shall comply with all applicable state laws including but not limited to the Colorado Open Meetings Law (Sec. 24-6-401, et seq., C.R.S.), the Local Government Budget Law of Colorado (Sec. 29-1-101, et seq., C.R.S.), the Colorado Local Government Audit Law (Sec. 29-1-601, et seq., C.R.S.), the Colorado Open Records Act (Sec. 24-72- 201, et seq., C.R.S.), and the Colorado Fair Campaign Practices Act (Sec. 1-45-101, et seq., C.R.S.). PUBLIC IMPROVEMENTS The BID Act authorizes business improvement districts to acquire, construct, finance, install, and operate “improvements,” which are defined in the BID Act to mean “public improvements” (Sec. 31-25-1203(5), C.R.S.), but only to the extent such improvements are authorized in an approved operating plan. In conformance with the BID Act, the BID shall only acquire, construct, finance, install, and operate those improvements authorized in this operating plan and any such authorized improvements shall be available and open to the public in a non-discriminatory manner. SECURITY SERVICES The BID may not provide security services as permitted by the BID Act in 2017 or 2018 or in the future without the City Council authorizing such services in an amendment of this operating plan or in a future operating plan approved by Council. EXHIBIT A Midtown Business Improvement District (BID) Boundary PARCEL NUMBER LEGAL DESCRIPTION 9725308010 TR K, SOUTHMOOR VILLAGE 5TH, FTC 9725243001 ALL BLK 2, THUNDERBIRD EST 9TH, TOG WITH VAC 30 FT RD ADJ SD BLK ON W, TOG WITH VAC S 30 FT DEL CLAIR RD ADJ SD BLK ON N, FTC 9725267003 LOT 3, BLK 1, REPLAT OF PT BLK 1, THUNDERBIRD EST 9TH SUB, TOG WITH VAC N 30 FT DEL CLAIR RD ADJ SD LOT ON S, FTC 9725222007 LOT 7, THUNDERBIRD EST 6TH, FTC (COMBINE 97252-22-102) 9726425001 LOT B, VILLA PUD, FTC; LESS 20140008729 9726415001 ALL POUDRE VALLEY MOTORS, FTC; LESS ROW TO FTC PER 20130064802 9726433002 LOT 2, MOURNING SUB, 2ND FIL, FTC 9736234001 TR A, SHOPKO PUD, FTC 9736205005 TR '5', OBSERVATORY HTS, FTC, LESS RD PER 832-248, LESS RD PER 95052252; LESS PALMER RETAIL MINOR SUB, FTC 9736215001 LOT 1 & W 38 FT OF LOT 2, FEENEY SUB, FTC; LESS RD ROW PER 20050011076 9726127001 LOT 1 LESS N 82 FT, & LOT 2 WALTERS, FTC 9726122001 LOT 1, HARVARD 1ST, FTC 9725312004 PT LOT 1, STRACHAN SUB, 2ND, FTC, BEG N 89 45' 30" E 111.8 FT; TH N 0 27' 15" W 31.62 FT; TH N 45 34' 15" W 26.14 FT FROM SW COR 25-7-69; TH N 45 34' 15" W 44.78 FT; TH N 0 24' 45" W 155.52 FT; TH N 89 45' 30" E 401.28 FT, TH S 0 14' 30" E 187 FT; TH S 8 9725222012 LOT 12, THUNDERBIRD EST 7TH, FTC 9726131001 LOTS 1 & 2, & E 30 FT OF LOT 3, REPLAT OF SWALLOW, FTC 9735119005 LOT 5B, CREGER PLAZA 2ND REPLAT, FTC 9735150002 LOT 2, MORELAND SUB, FTC 9726114001 LOT 1, GHENT, FTC; LESS 96030371; LESS POR TO CITY PER 20150057258. 9726100016 TR IN NE 1/4 26-7-69, BEG AT PT WH BEARS N 89 30' W 118.46 FT; S 0 30' W 30 FT; S 44 34' E 69.60 FT; S 0 19' E 257.12 FT FROM NE COR; SD PT LY ON WRLY R/W LN HWY 1; TH S 0 19' E 60 FT ALG SD WRLY R/W LN, N 89 30' W 362.4 FT; N 0 19' W 60 FT; S 89 30' E 3 9726138001 LOT 1, ED CARROLL VOLKSWAGEN-AUDI PUD, FTC 9726127004 N 82 FT LOT 1, WALTERS, FTC 9725244001 LOT 1, BLK 3, THUNDERBIRD EST 9TH, FTC 9735156001 LOT 1, OLIVE GARDEN MINOR SUB, FTC 9726423003 LOT 3, MOURNING, FTC; ALG W TR SE 1/4 26-7-69 DESC; BEG PT S LN LOT 3, MOURNING SUB N 89 43' 00" W 50 FT TO PT W LN US HWY 287, S 0 19' 00" W 870.81 FT ALG SD W LN, N 89 45' 00" W 183.33 FT FRM E 1/4 COR SD SEC 26; TH S 0 15' 00" W 35 FT, N 89 45' 00" W 9725222005 W 168 FT OF LOT 5 & THE W 18 FT OF LOT 6, THUNDERBIRD EST 6TH, FTC; LESS 20040063975 9726132001 TR A & B, SOUTH COLLEGE COMMERCIAL, FTC AND ALSO ROW VACATED BY 20110028779 9725222015 S 55 FT OF LOT 11, THUNDERBIRD EST 7TH, FTC 9725267002 LOT 2, BLK 1 REPLAT PT OF BLK 1 THUNDERBIRD EST 9TH SUB, FTC 9726414003 LOTS 3, 4, 5, 8, 9, 10, 27, 28, 29 & S 26 FT LOTS 2 & 7& S 36.91 FT LOT 30 & PT VAC MASON ST, S MESA SUB FTC, DESC AS BEG SW COR LOT 27, N 0 54' E 345.96 FT, N 89 55' E 341.14 FT, S 89 54' E 385 FT, S 0 5' E 334.95 FT, TH ALG ARC 15 FT RAD CUR R, 23.61 F 9726414001 LOT 1, LOT 6, PT LOTS 2, 7, AND 32, PT VAC S MASON ST, HIGH ST, AND S COLLEGE FRONTAGE RD, SOUTH MESA SUB FTC DESC: BEG AT SW COR SD LOT 32, TH N 89 55' 00" E 338.24 FT; TH S 00 05' 00" E 169.11 FT; TH S 89 54' 00" E 395.74 FT; TH N 09 57' 30" E 22.91 FT 9726414011 LOT 11 & E 9 FT OF LOT 12, S MESA, FTC 9725330002 LOT 2, FOOTHILLS MALL REDEVELOPMENT SUB, FTC (20140028776) 9735150001 LOT 1, MORELAND SUB, FTC 9735110002 COMM AT NE COR OF LOT 1, BLK 1, REPLAT OF LOTS 1, 2, 3 & 4, CREGER PLAZA SUB; TH S 45 04' 34" E 42.14 FT; TH S 00 01' 26" W 601.79 FT; TH ALG TH ARC OF A CURVE TO R, RAD 15 FT, C/A 90 22' 55", L/C BEARS S 45 12' 54" W 21.28, A DIST OF 23.66 FT; TH N 89 3 9735110001 COMM AT NE COR OF LOT 1, BLK 1, REPLAT OF LOTS 1, 2, 3 & 4, CREGER PLAZA SUB; TH N 89 43' 14" W 63.38 FT TPOB; TH S 27 27' 45" E 70.37 FT; TH S 40 53' 13" E 83.72 FT; TH S 00 00' 00" E 17.16 FT; TH N 90 00' 00" W 63.49 FT; TH N 00 00' 00" E 9.70 FT; TH N 9726434001 LOT 1, MATTERHORN PUD, FTC 9736232001 BEG AT NW COR LOT 7, OBSERVATORY HTS, FTC, S 138.4 FT ALG SEC LN, S 89 51' E 56.4 FT TO E LN HWY 287 TPOB, S 89 51' E 301 FT, S 0 39' E 140.2 FT, N 70 22' W 109.63 FT, S 85 37' W 200.8 FT TO E LN HWY 287, N 0 24' E 119.47 FT TPOB; LESS ROW MITCHELL DR P 9726434002 LOT 2, MATTERHORN PUD, FTC 9726139001 TRACT A, PASTOR SUB, FTC 9725222001 LOT 1, THUNDERBIRD EST 6TH, FTC; LESS 97024358 9726124001 ALL NATIONAL, FTC 9726439001 LOT 1, RICHIE`S EXPRESS CARWASH SUBDIVISION, FTC (2001063512); LESS 20140013073 9736249003 LOT 1, TR C, 1ST REPLAT SHOPKO PUD, FTC 9726137002 LOT 1B LESS N 10 FT, REPLAT OF LOT 1, HARVARD SUB, 2ND,FTC 9726137001 LOT 1A & N 10 FT LOT 1B, REPLAT OF LOT 1, HARVARD SUB, 2ND, FTC 9735109005 E 135 FT OF LOT 5, RCD PLAZA SOUTH SUBDIVISION, PUD, FTC 9736215003 LOTS 3 & 4, FEENEY SUB, FTC 9725222016 PT LOT 14, THUNDERBIRD EST 7TH, FTC, ALSO PT THUNDERBIRD EST 9TH, FTC DESC AS BEG AT PT WH BEARS S 0' 45" E 1379.56 FT, E 95 FT FROM NW COR 25-7-69, E 120 FT, S 150 FT, W 135 FT, N 0 0' 45" W 135 FT, TH ALG ARC 15 FT RAD CUR R, 23.57 FT, L/C N 44 59' 38" 9725312002 PT OF LOT 1, STRACHAN SUB 2ND, FTC, DESC: BEG AT A PT ON N LN OF E HORSETOOTH RD WH BEARS N 89 45' 30" E 111.80 FT & N 00 27' 15" W 31.62 FT & N 45 34' 15" W 26.14 FT & N 89 45' 30" E 368.97 FT FROM SW COR OF 25-7-69, TH N 00 14' 30" W 187 FT 9725331010 TRACT J, FOOTHILLS MALL REDEVELOPMENT SUB, FTC (20140028776) 9725330017 LOT 17, FOOTHILLS MALL REDEVELOPMENT SUB, FTC (20140028776) 9725333003 TRACT C, FOOTHILLS MALL REDEVELOPMENT SUB FIL NO 2, FTC (20150020510); LESS POR IN TAX DISTRICT 11002 ON PARCEL 97253-33-018 9725332011 LOT 11, FOOTHILLS MALL REDEVELOPMENT SUB FIL NO 2, FTC (20150020510) 9725332019 LOT 19, FOOTHILLS MALL REDEVELOPMENT SUB FIL NO 2, FTC (20150020510) 9725330009 LOT 9, FOOTHILLS MALL REDEVELOPMENT SUB, FTC (20140028776) 9725330016 LOT 16, FOOTHILLS MALL REDEVELOPMENT SUB, FTC (20140028776) 9725332018 LOT 18, FOOTHILLS MALL REDEVELOPMENT SUB FIL NO 2, FTC (20150020510) 9725330010 LOT 10, FOOTHILLS MALL REDEVELOPMENT SUB, FTC (20140028776) 9736248001 LOT 1, FIRST REPLAT, 1ST CHOICE BANK OF FORT COLLINS, FTC 9736232001 TR A, TOYS "R" US/WESTERN AUTO PUD, FTC 9726123002 LOT 2, HARVARD 2ND, FTC 9726100034 TR IN 26-7-69, BEG AT E 1/4 COR, N 89 43' W 50 FT TO W ROW HWY 287 (S COLLEGE AVE), N 0 19' E ALG W ROW LN 818.33 FT TPOB, N 0 19' E ALG SD W ROW LN 200 FT, N 89 43' W 370 FT, S 0 19' W 200 FT, S 89 43' W 370 FT, S 0 19' W 200 FT, W 89 43' E 370 FT TPOB, 9725222008 LOT 8, THUNDERBIRD EST 6TH, FTC 9725300003 LOT 3, FOOTHILLS MALL REDEVELOPMENT SUB, FTC (20140028776) 9725327001 LOT 1, STRACHAN SUB, 5TH FIL, FTC 9725267001 LOT 1, BLK 1, REPLAT PT OF BLK 1 THUNDERBIRD EST 9TH SUB, FTC 9725222010 LOTS 10 AND 11, THUNDERBIRD EST 7TH, FTC, LESS S 55 FT SD LOT 11 9726100022 TR IN NE 1/4 26-7-69 BEG AT PT ON WRLY R/W LN HWY 287 WH BEARS N 89 30' W 118.46 FT, S 0 30' W 30 FT, S 44 34' E 69.6 FT, S 0 19' W 757.1 FT, S 10 59' 30" E 102 FT, S 0 19' W 1020.66 FT FROM NE COR, S 0 19' W 70 FT ALG SD R/W TO NE COR TR DESC IN 1357-33 9725222004 LOT 4, THUNDERBIRD EST 6TH, FTC 9725330014 LOT 14, FOOTHILLS MALL REDEVELOPMENT SUB, FTC (20140028776) 9725330013 LOT 13, FOOTHILLS MALL REDEVELOPMENT SUB, FTC (20140028776) 9725330015 LOT 15, FOOTHILLS MALL REDEVELOPMENT SUB, FTC (20140028776) 9725330012 LOT 12, FOOTHILLS MALL REDEVELOPMENT SUB, FTC (20140028776) EXHIBIT B Midtown Business Improvement District (BID) Legal Description of Parcels