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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 05/02/2017 - RESOLUTION 2017-039 AUTHORIZING THE EXECUTION OF TAgenda Item 10 Item # 10 Page 1 AGENDA ITEM SUMMARY May 2, 2017 City Council STAFF Tom Leeson, Director, Comm Dev & Neighborhood Svrs SUBJECT Resolution 2017-039 Authorizing the Execution of the Third Amendment to First Amended Intergovernmental Agreement Pertaining to the Development of the Interstate 25/State Highway 392 Interchange. EXECUTIVE SUMMARY The purpose of this item is to amend the City of Fort Collins and Town of Windsor Intergovernmental Agreement pertaining to the development of the Interstate 25/State Highway 392 interchange to allow single- family residential as a permitted use on a portion of the Windsor side of the Corridor Activity Center Overlay Zone. STAFF RECOMMENDATION Staff recommends adoption of the Resolution. BACKGROUND / DISCUSSION In 2011, recognizing that the I-25/392 Interchange is an important gateway feature for Fort Collins and Windsor, a Corridor Activity Center (CAC) overlay zone district was created. The CAC area is defined to include zoning boundaries within the immediate area surrounding the Interchange. The CAC established land use and gateway design standards to complement and enhance the implementation of the Northern Colorado Regional Communities I-25 Corridor Plan (Regional Plan), with the District added to the Land Use Codes of each community. As part of the Intergovernmental Agreement between the City and the Town (IGA), both Land Use Codes were amended in order to implement the vision and establish a new list of permitted land uses, and establish design standards for this joint planning area. The IGA also includes a revenue sharing provision in which each jurisdiction agreed to share the property tax increment and sales tax increment generated by properties and businesses located within the boundaries of the CAC. The purpose of the revenue sharing is to help reimburse each party for the original investment into the I-25/SH 392 intersection improvements. The original 2011 IGA was superseded by the First Amended Intergovernmental Agreement Pertaining to the Development of the Interstate 25/State Highway 392 Interchange dated November 13, 2012, which was subsequently amended in 2013 and 2016. (See Attachment 1 for the IGA, including amendments) In 2015, the Town of Windsor received two separate requests to amend the IGA with Fort Collins to add automobile dealerships and single-family detached residential to the list of allowable land uses within the I- 25/SH 392 Corridor Activity Center. After considerable community outreach, discussion and joint meetings between the Windsor Town Board and Fort Collins City Council, the Town of Windsor forwarded a proposal to amend the IGA to the City on April 21, 2016. In response to anticipated development proposals, the Town of Windsor and the City also initiated an effort to adopt enhanced design standards that would apply to development within the I-25/SH 392 CAC. Both communities completed work on the enhanced design standards, each adopting comparable standards in September and October 2016. Agenda Item 10 Item # 10 Page 2 The auto dealerships eventually withdrew their proposed IGA amendment. The proposal to include single- family detached residential uses remains active; however, that master plan amendment and related rezoning applications within the Town of Windsor are currently “on hold” pending the outcome of the Windsor Town Board and City Council consideration of the IGA amendment. Amended and Restated IGA On March 27, 2017, the Windsor Town Board approved Resolution No. 2017-27 which authorized the Town Manager to propose to the City of Fort Collins an amendment to the IGA governing development of the I- 25/SH392 Corridor Activity Center. The proposed Third Amendment to First Amended Intergovernmental Agreement Pertaining to the Development of the Interstate 25/State Highway 392 Interchange (Exhibit A to Resolution 2017-039), together with the identified Exhibits A and B, includes the following:  Amendment of Permitted Uses. Section 1 contains a specific amendment to Section 3.1.1 of the IGA and the list of permitted uses (Exhibit A). The list of permitted uses now includes Single-family Detached Residential uses under Windsor’s column, with a footnote that incorporates the limitations under this Third Amendment.  Limitations on Single-Family Detached Residential. Section 1 also contains specific limitations on Single- family Detached Residential uses. Single family homes are limited to 45 acres on the far eastern edge of the Muth property north of Highway 392 and just west of Larimer County Road 5 as depicted in Exhibit B, with a maximum number within 10% of 116 units. The percentage factor allows some flexibility when actual subdivision planning takes place.  Exhibit A. Exhibit A is the restated List of Permitted Uses, containing the reference to Single-family Detached Residential. Exhibit B is a map showing the area available for the Single-family Detached Residential uses. The Third Amendment to the IGA is very specific, and expressly retains understandings from the original IGA without modification. Except as specifically stated in the Third Amendment, the IGA remains affected. Development Issues In addition to the economic analysis, there has been work during the past year to address various development related issues resulting from the proposed amendment, including the following:  Transportation - The access and traffic circulation pattern have been revised in response to Fort Collins and Windsor staff review comments and the proposed change of uses and the latest concept has been found to be acceptable subject to all plans being updated and engineered accordingly. An updated traffic impact study will be required at the time that site specific development plans are submitted to the Town of Windsor.  Sanitary Sewer - Fort Collins and Windsor staff met with South Fort Collins Sanitation District (SFCSD) on 7/29/16 to discuss sewer service plans for the entire CAC area. SFCSD indicated at that time that they plan to incorporate Fort Collins and Windsor development plans into their updated master plan. SFCSD subsequently confirmed their sanitary sewer infrastructure is adequate for approximately 300 dwelling units. SFCSD indicated that they will be conducting flow monitoring from March to July 2017 to verify available capacity. Agenda Item 10 Item # 10 Page 3 CITY FINANCIAL IMPACTS Revenue Sharing Agreement/Economic Analysis The current IGA requires sixty-five percent (65%) of the property and sales tax increment revenues generated in the CAC to be retained by each party and the remaining thirty-five percent (35%) of such revenues to be transferred to the other party to help reimburse each party for the original investment into the I-25/SH 392 intersection improvements. When the original IGA was executed, estimates of revenue were calculated based on the allowable uses and intensity of uses in each jurisdiction. Amending the list of allowable uses in the CAC could have an impact on the total revenue generated, so the Town of Windsor and City of Fort Collins requested Mr. Muth conduct an economic analysis of the proposed amendment. Windsor Investments Ltd., LLC the owners of the property to be rezoned hired Economic & Planning Systems, Inc. to prepare a market analysis of the Ptarmigan Business Park properties. The analysis concludes the following about the site: 1. There does not appear to be the market demand for a regional retail center (600,000 square feet plus with significant anchors) at the properties in the foreseeable future: a. Market demand would not justify a regional retail center until 2025; and b. The center would face stiff competition from a number of other potential sites. 2. The requested zone change will generate significantly less revenue than the current zoning: a. CAC Trip Generation Fees would be slightly less; and b. Property Tax and Sales Tax revenues would generate only 45 percent of the estimates for the current zoning. 3. The proposed zoning, specifically for residential development, would likely begin to generate revenue to the CAC and the communities well ahead of “waiting out” a major regional retail center. BOARD / COMMISSION RECOMMENDATION At its April 20, 2017 meeting the Planning and Zoning Board reviewed the proposed amendment and unanimously recommended approval of the amendment. (Attachment 2) PUBLIC OUTREACH The City of Fort Collins did not provide any outreach for this proposal by the Town of Windsor. ATTACHMENTS 1. 2012 IGA with First and Second Amendments (PDF) 2. Planning and Zoning Board minutes, April 20, 2017 (draft) (PDF) ATTACHMENT 1 Jeff Schneider, Chair City Council Chambers Jeff Hansen, Vice Chair City Hall West Jennifer Carpenter 300 Laporte Avenue Emily Heinz Fort Collins, Colorado Michael Hobbs Ruth Rollins Cablecast on FCTV Channel 14 & William Whitley Channel 881 on Comcast The City of Fort Collins will make reasonable accommodations for access to City services, programs, and activities and will make special communication arrangements for persons with disabilities. Please call 221-6515 (TDD 224-6001) for assistance. Regular Hearing April 20, 2017 Member Schneider called the meeting to order at 6:00 p.m. Roll Call: Carpenter, Hansen, Hobbs, Rollins, and Schneider Absent: Heinz and Whitley Staff Present: Gloss, Leeson, Yatabe, Prassas, Tatman-Burruss, and Cosmas Agenda Review Chair Schneider provided background on the board’s role and what the audience could expect as to the order of business. He described the following procedures:  While the City staff provides comprehensive information about each project under consideration, citizen input is valued and appreciated.  The Board is here to listen to citizen comments. Each citizen may address the Board once for each item.  Decisions on development projects are based on judgment of compliance or non-compliance with city Land Use Code.  Should a citizen wish to address the Board on items other than what is on the agenda, time will be allowed for that as well.  This is a legal hearing, and the Chair will moderate for the usual civility and fairness to ensure that everyone who wishes to speak can be heard. Planning and Zoning Board Minutes ATTACHMENT 2 Planning & Zoning Board April 20, 2017 Page 2 Planning Director Gloss reviewed the items on the Consent and Discussion agendas with no exceptions mentioned. Public Input on Items Not on the Hearing Agenda: Eric Sutherland, 3520 Golden Currant, noted several concerns regarding zoning and legal inconsistencies, including the process for appealing P&Z decisions, saying there is no defined criterion by which City Council makes decisions on appeals or rezoned properties. He also asked if there was a process by which citizens could make suggestions to the Land Use Code (LUC) during the annual review. Director Gloss addressed one of the citizen’s concerns related to citizen-initiated changes to the LUC, saying there is a provision that allows outside parties to submit such requests, and this is handled through an amendment process. Regarding the City Council appeal process, Assistant City Attorney Yatabe stated that Standard 2.9.4 of the Land Use Code enables the Planning and Zoning Board to make recommendations to City Council regarding land rezoning, which will then be upheld or denied by City Council. Consent Agenda: 1. Draft Minutes from March 16, 2017, P&Z Hearing Public Input on Consent Agenda: None noted. Member Hobbs made a motion that the Planning and Zoning Board approve the April 20, 2017, Consent agenda as presented; Member Carpenter seconded the motion. Vote: 5:0. Discussion Agenda: 2. Fort Collins – Windsor IGA Amendment Project: Fort Collins – Windsor IGA Amendment Project Description: Amendment to the City of Fort Collins and Town of Windsor Intergovernmental Agreement (IGA) pertaining to the development of the Interstate 25/State Highway 392 Interchange to allow single-family residential as a permitted use on a portion of the Windsor side of the Corridor Activity Center Overlay Zone. Recommendation: Approval Staff and Applicant Presentations Secretary Cosmas confirmed that no additional documentation or correspondence has been received since the work session. Planning & Zoning Board April 20, 2017 Page 3 CDNS Director Leeson gave a presentation of this IGA amendment, which is requesting to allow single- family residential as a permitted use on a portion of the Windsor side of the Corridor Activity Center Overlay Zone. He gave some background on the IGA, originally adopted in 2010 and amended in 2013, which changed the process for some of the land use approvals at that time. He discussed the public outreach and the standards that would be adopted by both communities to enhance design standards. This proposal was initiated by the Town of Windsor to amend the IGA to allow single-family residential as a permitted use on a portion of the property. He showed a map of the IGA area, which is limited to 45 acres (also limiting the single-family units to approximately 116 units). He discussed the impact to the revenue-sharing agreement, saying a market analysis had been prepared with the idea that this investment would be eventually repaid with future revenues. However, the conclusion from the market analysis indicated that there isn’t the same market demand for a regional retail center, which was originally proposed. This will significantly reduce the revenue generated, but the market changes are impossible to correlate at this time due to an influx of new competitive sources. The allowance of single- family homes would most likely result in a faster revenue return due to market demand. He noted that the report also indicates that the proposed revenue generated would exceed both Windsor’s and Fort Collins’ initial investment. Member Rollins asked for clarification on the methodology of determining the revenue generation considering the current proposal to reduce future commercial use. CDNS Director Leeson explained that the revenue proposed would exceed the original investments over time with build-out of the properties. Member Hobbs asked if there is also revenue sharing of building assessment fees; CDNS Director Leeson confirmed that the only revenue sharing is with property and sales tax increment. Chair Schneider asked if this is item would constitute an approval or recommendation or City Council; CDNS Director Leeson confirmed that it will eventually become a resolution, so a recommendation from the Planning and Zoning Board is appropriate. Public Input (3 minutes per person) Eric Sutherland, 3520 Golden Currant, has a concern with developments being funded or subsidized by taxes. He stated that this IGA is not legally enforceable in court, saying that the Urban Renewal Authority has declared that this Board can only approve the agreement, not the future development. He also has a concern about school financing in Colorado, citing the new schools that will be built as a result of this land development, which could result in sacrificing maintenance in existing schools in favor of new schools. Tom Muth, owner of the partnership, confirmed that an impact fee was initially assessed to all the property owners, and part of that agreement was not to litigate the impact fee but to negotiate the impact fee, which was favorably settled. He added that there are still significant payments to be made for future impact fees, which will then go to pay back the original debt; in addition, once the development activity begins, the revenue-earning process will also commence. Board Deliberation Vice Chair Hansen acknowledged that having a residential development prior to adding a commercial aspect is more advisable; he has a concern that this site will have a high-intensity use, and people may eventually oppose the future commercial development. He suggested that a higher density buffer be established other than single-family. Chair Schneider agreed and added that the higher density is already among the allowable uses for this property. CDNS Director Leeson responded that there will be a multi-family usage as part of the transition area between the single-family and the commercial areas. Planning & Zoning Board April 20, 2017 Page 4 Member Hobbs made a motion that the Planning and Zoning Board make a recommendation to City Council to approve the Fort Collins – Windsor IGA Amendment pertaining to the development of the Interstate 25 /State Highway 392 Interchange to allow single-family residential as a permitted use on a portion of the Windsor side of the Corridor Activity Center Overlay Zone. Member Carpenter seconded. Vote: 5:0. Other Business None noted. The meeting was adjourned at 6:30pm. Cameron Gloss, Planning Director Jeff Schneider, Chair -1- RESOLUTION 2017-039 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE EXECUTION OF THE THIRD AMENDMENT TO FIRST AMENDED INTERGOVERNMENTAL AGREEMENT PERTAINING TO THE DEVELOPMENT OF THE INTERSTATE 25/STATE HIGHWAY 392 INTERCHANGE WHEREAS, pursuant to Resolution 2010-077 adopted by the Fort Collins City Council on December 21, 2010, the City and the Town of Windsor (the “Town”) entered into an Intergovernmental Agreement (the “Original Agreement") dated January 3, 2011 setting forth certain understandings between the City and Town regarding development of the Interstate 25/State Highway 392 Interchange; and WHEREAS, pursuant to Ordinance No.118, 2012 adopted by the Fort Collins City Council on second reading November 6, 2012, the City and the Town entered into the First Amended Intergovernmental Agreement Pertaining to the Development of the Interstate 25/State Highway 392 Interchange dated November 13, 2012 (the “IGA”), which superseded the Original Agreement; and WHEREAS, on May 7, 2013, City Council adopted Ordinance No. 62, 2013, approving that certain Intergovernmental Agreement Amending Certain Provisions of the First Amended Intergovernmental Agreement Pertaining to the Development of the Interstate 25/State Highway 392 Interchange dated May 9, 2013 (the “First Amendment”); and WHEREAS, on September 6, 2016, City Council adopted Resolution 2016-070 authorizing a further amendment of the IGA as set forth in that certain Second Amendment to First Amended Intergovernmental Agreement Pertaining to the Development of the Interstate 25/State Highway 392 Interchange dated November 14, 2016 (the “Second Amendment”); and WHEREAS, the IGA, as amended by the First Amendment and the Second Amendment is referred to herein collectively, the “IGA”; and WHEREAS, the IGA establishes permitted uses and development standards for the Interstate 25/State Highway 392 Corridor Activity Center, referred to therein as the “CAC” a portion of which is in Windsor and a portion of which is in Fort Collins; and WHEREAS, the Town received a request to allow a limited amount of single-family residential use within the Town's portion of the CAC on east side of Interstate 25 (the “Windsor CAC”) and proposed amending the IGA to permit such uses; and WHEREAS, on March 27, 2017, the Windsor Town Board approved Resolution No. 2017-27, which authorized the Town Manager to propose to the City a Third Amendment to the IGA incorporating the requested changes, a copy of which is attached hereto as Exhibit “A” and incorporated herein by reference (the “Third Amendment”); and -2- WHEREAS, the City and the Town are authorized to enter into intergovernmental agreements to provide any function, service or facility, as provided in 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 Council has determined that the Third Amendment is in the best interests of the City and desires to approve and authorize the Mayor to execute the Third Amendment on behalf of the City. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes any and all determinations and findings contained in the recitals set forth above. Section 2. That the City Council hereby approves and authorizes the Mayor to execute the Third Amendment to the IGA in the form attached as Exhibit “A” hereto, with such changes that the City Manager, in consultation with the City Attorney, determines to be necessary and appropriate to protect the interests of the City or effectuate the purposes of this Resolution. Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 2nd day of May, A.D. 2017. _________________________________ Mayor ATTEST: _____________________________ City Clerk EXHIBIT A