HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 07/05/2017 - ITEMS RELATING TO THE LEASE FINANCING OF THE FIREHAgenda Item 8
Item # 8 Page 1
AGENDA ITEM SUMMARY July 5, 2017
City Council
STAFF
John Voss, Controller
Josh Birks, Economic Health Director
Travis Storin, Accounting Director
SUBJECT
Items Relating to the Lease Financing of the Firehouse Alley Parking Garage.
EXECUTIVE SUMMARY
A. Second Reading of Ordinance No. 081, 2017, Authorizing the Leasing of Certain City Property and the
Execution and Delivery by the City of a Site Lease, a Lease Purchase Agreement, and Other Documents
and Matters in Connection with the Financing of the City’s Acquisition of Certain Parking Facilities; Setting
Forth Certain Parameters and Restrictions with Respect to the Financing; and Providing for Other Matters
Related Thereto.
B. Second Reading of Ordinance No. 082, 2017, Appropriating the Lease Financing Proceeds in the Capital
Projects Fund to be Used for the Purchase of a Portion of the Firehouse Alley Parking Structure and to
Pay for Related Lease Financing Costs.
C. Resolution 2017-062 Authorizing the City Manager to Execute an Intergovernmental Agreement with the
Downtown Development Authority Regarding Contributions to the City for Public Parking Spaces and
Parking Programs in Downtown Fort Collins.
These Ordinances, unanimously adopted on First Reading on June 6, 2017, authorize the financing and
acquisition of the Firehouse Alley Parking Structure. Total costs are projected to be $8,430,000. The City will
acquire approximately 216 spaces located on the second and third floors. Resolution 2017-062 authorizes an
intergovernmental agreement with the Downtown Development Authority (DDA) that outlines the DDA
contribution of $300,000 a year toward the lease payments, beginning in 2019.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinances on Second Reading and the Resolution.
BACKGROUND / DISCUSSION
The proposed intergovernmental agreement (IGA) between the City and DDA is included with Resolution
2017-062. It was not included in at First Reading because the DDA was still working on the specific language.
Some concerns have been raised about using the Senior Center as collateral in the certificate of participation
(COP) financing. Two charitable foundations previously donated funds to the City that were used for recent
renovations to the Senior Center. The donations were subject to restrictions on the use of the Senior Center
as collateral in financing transactions. Both of these foundations have recently waived those restrictions.
(Attachment 2)
Agenda Item 8
Item # 8 Page 2
BOARD / COMMISSION RECOMMENDATION
The proposed IGA between the City and DDA has not been formally approved by the DDA. At its May 11,
2017 regular meeting, the Board reviewed the draft and offered some minor changes to staff. Unfortunately
the Board did not have a quorum at its regular meeting on June 8. DDA approval of the IGA is fully expected
to occur at its next meeting on July 13.
ATTACHMENTS
1. First Reading Agenda Item Summary, June 6 , 2017 (w/o attachments) (PDF)
2. Memo re: Senior Center Grant Requirements and Use as Collateral for Parking Financing (PDF)
3. Ordinance No. 081, 2017 (PDF)
4. Ordinance No. 082, 2017 (PDF)
Agenda Item 20
Item # 20 Page 1
AGENDA ITEM SUMMARY June 6, 2017
City Council
STAFF
John Voss, Controller
Josh Birks, Economic Health Director
SUBJECT
Items Relating to the Lease Financing of the Firehouse Alley Parking Garage.
EXECUTIVE SUMMARY
A. First Reading of Ordinance No. 081, 2017, Authorizing the Leasing of Certain City Property and the
Execution and Delivery by the City of a Site Lease, a Lease Purchase Agreement, and Other Documents
and Matters in Connection with the Financing of the City’s Acquisition of Certain Parking Facilities; Setting
Forth Certain Parameters and Restrictions with Respect to the Financing; and Providing for Other Matters
Related Thereto.
B. First Reading of Ordinance No. 082, 2017, Appropriating the Lease Financing Proceeds in the Capital
Projects Fund to be Used for the Purchase of a Portion of the Firehouse Alley Parking Structure and to
Pay for Related Lease Financing Costs.
The purpose of this item is to authorize the financing and acquisition of the Firehouse Alley Parking Structure.
Total costs are projected to be $8,430,000. The City will acquire approximately 216 spaces located on the
second and third floors.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinances on First Reading.
BACKGROUND / DISCUSSION
City Council adopted Resolution 2015-101 on November 17, 2015, that approved a Construction and Purchase
Agreement for the City's purchase of parking spaces in the proposed Jefferson Street Parking Structure (now
called Firehouse Alley Parking Structure).
Project Overview
The public-private partnership has constructed a 3-level mixed-use parking structure with 335 parking spaces
and 2,988 square feet of retail space, located at the corner of Chestnut and Jefferson Streets, (the Project).
The Project is a public-private partnership between the City of Fort Collin and the developers of The Elizabeth
Hotel (Bohemian Companies, McWhinney, and Sage Hospitality - collectively the Developer). The structure
entry will be on Chestnut Street and the retail spaces will face onto Old Firehouse Alley. The Project will
contain all required vehicle and bicycle parking for the hotel.
Parking
The Project is designed as a three-bay structure with a central ramp for moving between floors. The central
ramp allows for the exterior of the structure on all four faces to have horizontal floors. This construction allows
ATTACHMENT 1
Agenda Item 20
Item # 20 Page 2
for an efficient use of the available footprint and a structure that addresses the streets and alley with a
consistent façade free of the impacts from the required ramps. The structure will be constructed above ground
with the exception of a short downward ramp on the first floor. The floor to ceiling height on the ground floor
will be higher to accommodate retail space facing the alley. The result is approximately 323 parking spaces
over three levels. (see Table 1)
Table 1
Parking Count By Floor and Type
Tier Standard Van Accessible Accessible Total
Ground 84 2 2 88
Second 117 0 2 119
Third 114 0 2 116
Total 315 2 6 323
Of the parking, 107 of spaces will be dedicated to The Elizabeth Hotel (approved by the Planning and Zoning
Board on August 10, 2015) and the remaining 216 spaces will be public parking managed by the City. The
hotel’s parking will include all of the ground floor with the balance of spaces located on the second floor. The
remaining spaces on the second and third level will be available for public parking. The ground floor will have
limited access for hotel patrons and staff only and will be used for hotel valet and general parking. The
remaining hotel spaces will be designated as “Reserved for Hotel Use” using signs on the second floor. (see
Table 2)
Table 2
Parking Count By Floor and Use
Tier Hotel Public Total
Ground 84 4 88
Second 23 96 119
Third 0 116 116
Total 107 216 323
Retail
The Project includes 2,988 square feet of retail facing Old Fire House Alley that will contain artisan and hotel
supporting retailers. This retail is located immediately across the alley from the Fort Collins Hotel bar and lobby
space and will create an active and vibrant alley. In addition, the Project includes the façade improvements for
a similar amount of retail along the Jefferson Street structure face. This retail will not be constructed during the
initial Project. This Jefferson Street facing retail will be reserved for future construction when nearby
development has created a more active pedestrian atmosphere along Jefferson Street. The City will be able to
drive the timing of this construction through an option specified in the purchase and sale agreement.
Design Considerations
The proposed design is a result of a thoughtful context-sensitive approach by the Developer. Although the
Project is outside of the Old Town Historic District, the design team utilized the Old Town Historic District
Design Standards to inform the building and site design. In addition, the design team referred to the River
District Design Guidelines for Structured Parking 6.25 thru 6.27 for guidance on design. The result is a
structure that bridges the industrial character of the River District to the historic character of the Old Town
Historic District.
The Project was reviewed and recommended for approval by the Landmark Preservation Commission (LPC)
on September 28, 2015 and approved by the Planning and Zoning Board on October 8, 2015.
Agenda Item 20
Item # 20 Page 3
Downtown Public Parking Demand
The Parking Plan includes a Parking Demand Model that provides insights into future parking needs based on
existing and future land uses. This model, combined with additional staff analysis, generated an estimate of the
overall demand for additional public parking in the Downtown area. Table 3 (excerpted from the Parking Plan)
summarizes the estimate of future public parking demand over a 10-year period.
Table 3
Future Public Parking Demand: 10 Year Horizon
The analysis indicates a demand for approximately 910 spaces over the 10-year horizon with an additional 600
spaces needed to support a proposed 1,500 seat performance hall. Therefore, the Project as proposed meets
24 percent of the projected need for all future public parking demand and 43 percent of the demand from
background growth in demand as projected by the Parking Demand Model. The Project as proposed also
locates the 216 additional public parking spaces in one of the seven identified target areas within the Parking
Plan. Therefore, the Project aligns with the needs and locations identified within the Parking Plan for additional
public parking.
Partnership Structure
As recommended in the Parking Plan, this Project uses a Public Private Partnership to deliver additional public
parking in the Downtown area. In the proposed partnership, the Developer of The Elizabeth Hotel is
constructing the Project and when completed (anticipated in August 2017), the Developer will sell the City
approximately 216 parking stalls in two condominium spaces. The process is very similar to the approach used
Agenda Item 20
Item # 20 Page 4
to construct the new Foothills Activity Center and the Council Tree Public Library. In addition, this approach
allows for the City to utilize tax-exempt financing.
Financing Overview
The financing method for the City’s acquisition of the parking spaces is a lease-lease back transaction with the
issuance of certificates of participation. The purchaser of the certificates of participation will be Vectra Bank
and the Senior Center is being used as the leased property in the lease-lease back transaction.
The Downtown Development Authority (DDA) has drafted an intergovernmental agreement (IGA) that City
Council will consider at its July 5, 2017, regular meeting. The DDA intends to contribute $300,000 a year
toward the lease payments beginning in 2019. The DDA Board is still considering the form of the IGA and is
expected to finalize and approve the IGA at their June meeting. In addition, after June 2018, monies being
used for the payment of the lease-purchase financing transaction for the Civic Center Parking Structure and
215 North Mason will become available to use for the lease payments under this lease-lease back transaction.
Closing on the financing package is scheduled for July 18 and the City’s acquisition of the parking spaces in
the structure is anticipated to occur in late August or September 2017.
CITY FINANCIAL IMPACTS
The lease-lease back financing transaction will provide $8.43 million of proceeds to be repaid over a term of 10
years at 2.48% interest. Lease payments, subject to annual appropriation, begin in 2018 and go through 2027
with average annual payments of $962,000. Beginning in 2019, the DDA is expected to contribute $300,000
annually to these lease payments. The rest will come from available monies after the final payment on the
lease-purchase financing transaction for the Civic Center Parking Structure and the 215 North Mason
administrative building, which final payment occurs on June 1, 2018. General Fund monies previously used for
those lease payments will be used for the lease payments under the lease-lease back transaction involving the
Senior Center.
BOARD / COMMISSION RECOMMENDATION
City Council Finance and Audit Committee discussed this item May 15, 2017.
ATTACHMENTS
1. Council Finance Committee minutes, May 15, 2017 (draft) (PDF)
2. Site Lease (PDF)
3. Lease Agreement (PDF)
4. Powerpoint presentation (PDF)
ATTACHMENT 2
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ORDINANCE NO. 081, 2017
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE LEASING OF CERTAIN CITY PROPERTY AND THE EXECUTION
AND DELIVERY BY THE CITY OF A SITE LEASE, A LEASE AGREEMENT, AND
OTHER DOCUMENTS AND MATTERS IN CONNECTION WITH THE FINANCING OF
THE CITY’S ACQUISITION OF CERTAIN PARKING FACILITIES; SETTING FORTH
CERTAIN PARAMETERS AND RESTRICTIONS WITH RESPECT TO THE FINANCING;
AND PROVIDING FOR OTHER MATTERS RELATED THERETO
WHEREAS, the City of Fort Collins, Colorado (the “City”) is a duly organized and
existing home rule municipality of the State of Colorado, created and operating pursuant to
Article XX of the Constitution of the State of Colorado and the home rule charter of the City (the
“Charter”);
WHEREAS, the City is authorized by Article XX, Section 6 of the Colorado
Constitution, and part 8 of Article 15 of title 31, Colorado Revised Statutes (“C.R.S.”), to enter
into rental or leasehold agreements in order to provide necessary land, buildings, equipment and
other property for governmental or proprietary purposes;
WHEREAS, the City Council of the City (the “City Council”) is authorized by Chapter
23, Article IV, Division 2 of the Fort Collins Municipal Code, to lease any and all interests in
real property owned in the name of the City if the City Council first finds that the lease is in the
best interest of the City;
WHEREAS, the City desires to acquire approximately 216 parking spaces in a parking
facility (the “Project”) that is being constructed by Bohemian Companies in connection with a
hotel development project in downtown Fort Collins;
WHEREAS, the City Council has determined and hereby determines that it is in the best
interest of the City to finance the acquisition of the Project by entering into a lease financing
with ZB, N.A., or such other purchaser selected by the City (the “Purchaser”);
WHEREAS, the proceeds of the lease financing will be used to finance the acquisition of
the Project;
WHEREAS, the City Council has determined and hereby determines that the leased
property under the Site Lease (hereinafter defined) and the Lease (hereinafter defined) will
consist of a site of approximately 8.75 acres (the “Site”) and the building and improvements
located thereon, which consists of the Fort Collins Senior Center (as more particularly described
in Exhibit A to the Site Lease and the Lease, the “Leased Property”);
WHEREAS, the City Council now hereby determines that in order to finance the
acquisition of the Project, it is in the best interest of the City and its inhabitants that (a) the City
enter into a Site and Improvement Lease (the “Site Lease”) with U.S. Bank National Association,
as trustee (the “Trustee”) under the Indenture (hereinafter defined) pursuant to which the City
will lease the Leased Property to the Trustee, and that (b) the City enter into a Lease Agreement
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(the “Lease”) with the Trustee pursuant to which the Trustee will lease the Leased Property back
to the City;
WHEREAS, pursuant to the Lease, and subject to the right of the City to terminate the
Lease and other limitations as therein provided, the City will pay certain Base Rentals and
Additional Rentals (as such terms are defined in the Lease) in consideration for the right of the
City to use the Leased Property;
WHEREAS, the City’s obligation under the Lease to pay Base Rentals and Additional
Rentals shall be from year to year only; shall constitute currently budgeted expenditures of the
City; shall not constitute a mandatory charge or requirement in any ensuing budget year; shall
not constitute a general obligation or other indebtedness or multiple fiscal year financial
obligation of the City within the meaning of any constitutional, charter, statutory limitation or
other requirement concerning the creation of indebtedness or multiple fiscal year financial
obligation, nor a mandatory payment obligation of the City in any ensuing fiscal year beyond any
fiscal year during which the Lease shall be in effect;
WHEREAS, the Trustee will enter into an Indenture of Trust (the “Indenture”) pursuant
to which there will be executed and delivered certain certificates of participation (the
“Certificates”) dated as of their date of delivery that shall evidence proportionate interests in the
right to receive certain Revenues (as defined in the Lease), which Certificates shall be payable
solely from the sources therein provided and shall not directly or indirectly obligate the City to
make any payments beyond those appropriated for any fiscal year during which the Lease shall
be in effect;
WHEREAS, the Certificates will be purchased by the Purchaser;
WHEREAS, the proceeds from the sale of the Certificates will finance the acquisition of
the Project by the City and pay the costs of issuance in connection therewith;
WHEREAS, Section 11-57-204 of the Supplemental Public Securities Act, constituting
Title 11, Article 57, Part 2, C.R.S., as amended (the “Supplemental Act”), provides that a public
entity, including the City, may elect in an act of issuance to apply all or any of the provisions of
the Supplemental Act; and
WHEREAS, there has been presented to the City Council and are on file at the City
offices the following: (i) the proposed form of the Site Lease; and (ii) the proposed form of the
Lease.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS, COLORADO as follows:
Section 1. Recitals Incorporated. The foregoing recitals are incorporated herein by
reference and adopted as findings and determinations of the City Council.
Section 2. Ratification and Approval of Prior Actions. All action heretofore taken
(not inconsistent with the provisions of this Ordinance) by the City Council or the officers,
agents or employees of the City relating to the selection of the Purchaser, the execution and
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delivery of the Site Lease and the Lease, the acquisition of the Project, and the sale, execution
and delivery of the Certificates is hereby ratified, approved and confirmed.
Section 3. Finding of Best Interests. The City Council hereby finds and determines,
pursuant to the Constitution, the laws of the State of Colorado and the Charter, that the
acquisition of the Project, and the financing of the costs thereof, including the costs of issuance
incurred in connection therewith, pursuant to the terms set forth in the Site Lease, the Lease and
the Sale Certificate (hereinafter defined) are necessary, convenient, and in furtherance of the
City’s public purposes and are in the best interests of the City and the City Council hereby
authorizes and approves the same.
Section 4. Supplemental Act; Parameters. The City Council hereby elects to apply
all of the provisions of the Supplemental Act to the Site Lease and the Lease and in connection
therewith delegates to each of the City Manager or the Financial Officer of the City (the
“Financial Officer”) the independent authority to make any determination delegable pursuant to
§11-57-205(1)(a-i) C.R.S., as amended, in relation to the Site Lease and the Lease, and to
execute a sale certificate (the “Sale Certificate”) setting forth such determinations, including
without limitation, the term of the Site Lease, the rental amount to be paid by the Trustee
pursuant to the Site Lease, the term of the Lease, and the rental amount to be paid by the City
pursuant to the Lease, subject to the following parameters and restrictions:
a. the term of the Site Lease shall not extend beyond December 31, 2032;
b. the aggregate rental amount to be paid by the Trustee pursuant to the Site
Lease shall not be less than $9,995,000;
c. the Lease Term shall not extend beyond December 31, 2027;
d. the maximum annual repayment cost of the Base Rentals under the Lease
shall not exceed $995,000, and the aggregate principal amount of the Base
Rentals payable by the City pursuant to the Lease shall not exceed
$8,600,000;
e. the maximum interest rate on the interest component of the Base Rentals
relating to the Certificates shall not exceed 2.75%; and
f. the purchase price of the Certificates shall not be less than 100% of the
principal amount of the Certificates.
Pursuant to §11-57-205 of the Supplemental Act, the City Council hereby delegates to
each of the City Manager or the Financial Officer the independent authority to select the
purchaser of the Certificates, to sign a contract for the purchase of the Certificates or to accept a
binding bid for the Certificates and to execute any agreement or agreements in connection
therewith.
The delegation set forth in this Section 4 shall be effective for one year following the date
hereof.
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The City Council hereby agrees and acknowledges that the net proceeds of the
Certificates will be used, together with other available moneys of the City, to finance the costs of
acquiring the Project and to pay costs of issuance.
Section 5. Approval of Documents. The Site Lease and the Lease, in substantially
the forms presented to the City Council and on file with the City Clerk in connection with this
Ordinance, are in all respects approved, authorized and confirmed, and the Mayor of the City is
hereby authorized and directed for and on behalf of the City to execute and deliver the Site Lease
and the Lease, in substantially the forms and with substantially the same contents as presented to
the City Council, provided that such documents may be completed, corrected or revised as
deemed necessary by the parties thereto in order to carry out the purposes of this Ordinance.
Section 6. Authorization to Execute Collateral Documents. The City Clerk is hereby
authorized and directed to attest all signatures and acts of any official of the City in connection
with the matters authorized by this Ordinance and to place the seal of the City on any document
authorized and approved by this Ordinance. The Mayor, the City Clerk, the City Manager, the
Financial Officer and other employees and officials of the City are hereby authorized and
directed to execute and deliver for and on behalf of the City any and all additional certificates,
documents and other papers, and to perform all other acts that they may deem necessary or
appropriate in order to implement and carry out the transactions and other matters authorized by
this Ordinance. The approval hereby given to the various documents referred to above includes
an approval of such additional details therein as may be necessary and appropriate for their
completion, deletions therefrom and additions thereto as may be approved by the City Manager
or the Financial Officer prior to the execution of the documents. The execution of any
instrument by the appropriate officers of the City herein authorized shall be conclusive evidence
of the approval by the City of such instrument in accordance with the terms hereof.
Section 7. No General Obligation Debt. No provision of this Ordinance, the Site
Lease, the Lease, the Indenture, or the Certificates shall be construed as creating or constituting a
general obligation or other indebtedness or multiple fiscal year financial obligation of the City
within the meaning of any constitutional, statutory or Charter provision, nor a mandatory charge
or requirement against the City in any ensuing fiscal year beyond the then current fiscal year.
The City shall have no obligation to make any payment with respect to the Certificates except in
connection with the payment of the Base Rentals and certain other payments under the Lease,
which payments may be terminated by the City in accordance with the provisions of the Lease.
Neither the Lease nor the Certificates shall constitute a mandatory charge or requirement of the
City in any ensuing fiscal year beyond the then current fiscal year or constitute or give rise to a
general obligation or other indebtedness or multiple fiscal year financial obligation of the City
within the meaning of any constitutional, statutory or Charter debt limitation and shall not
constitute a multiple fiscal year direct or indirect debt or other financial obligation whatsoever.
No provision of the Site Lease, the Lease or the Certificates shall be construed or interpreted as
creating an unlawful delegation of governmental powers nor as a donation by or a lending of the
credit of the City within the meaning of Sections 1 or 2 of Article XI of the Colorado
Constitution. Neither the Lease nor the Certificates shall directly or indirectly obligate the City
to make any payments beyond those budgeted and appropriated for the City’s then current fiscal
year.
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Section 8. Reasonableness of Rentals; Fair Market Value. The City Council hereby
determines and declares that the Base Rentals due under the Lease, in the maximum amounts
authorized pursuant to Section 4 hereof, constitute the fair rental value of the Leased Property
and do not exceed a reasonable amount so as to place the City under an economic compulsion to
renew the Lease or to exercise its option to purchase the Trustee’s interest in the Leased Property
pursuant to the Lease. The City Council hereby determines and declares that the period during
which the City has an option to purchase the Trustee’s leasehold interest in the Leased Property
(i.e., the entire maximum term of the Lease) does not exceed the useful life of the Leased
Property.
The City Council hereby further determines that the amount of rental payments to be
received by the City from the Trustee pursuant to the Site Lease, in accordance with the
provisions set forth in Section 4 hereof, is fair market consideration for the leasing of the Leased
Property to the Trustee for the term of the Site Lease as provided therein.
Section 9. No Recourse against Officers and Agents. Pursuant to §11-57-209 of the
Supplemental Act, if a member of the City Council, or any officer or agent of the City acts in
good faith, no civil recourse shall be available against such member, officer, or agent for
payment of the principal, interest or prior redemption premiums on the Certificates. Such
recourse shall not be available either directly or indirectly through the City Council or the City,
or otherwise, whether by virtue of any constitution, statute, rule of law, enforcement of penalty,
or otherwise. By the acceptance of the Certificates and as a part of the consideration of their sale
or purchase, any person purchasing or selling such Certificate specifically waives any such
recourse.
Section 10. Repealer. All ordinances, resolutions, bylaws, orders, and other
instruments, or parts thereof, inconsistent herewith are hereby repealed to the extent only of such
inconsistency. This repealer shall not be construed to revive any ordinance, resolution, bylaw,
order, or other instrument, or part thereof, heretofore repealed.
Section 11. Severability. If any section, subsection, paragraph, clause or other
provision of this Ordinance for any reason is held to be invalid or unenforceable, the invalidity or
unenforceability of such section, subsection, paragraph, clause or other provision shall not affect
any of the remaining provisions of this Ordinance, the intent being that the same are severable.
Section 12. Charter Controls. Pursuant to Article XX of the State Constitution and the
Charter, all State statutes that might otherwise apply in connection with the provisions of this
Ordinance are hereby superseded to the extent of any inconsistencies or conflicts between the
provisions of this Ordinance and the Sale Certificate authorized hereby and such statutes. Any
such inconsistency or conflict is intended by the City Council and shall be deemed made
pursuant to the authority of Article XX of the State Constitution and the Charter.
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Introduced, considered favorably on first reading, and ordered published this 6th day of
June, A.D. 2017, and to be presented for final passage on the 5th day of July, A.D. 2017.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
Passed and adopted on final reading on the 5th day of July, A.D. 2017.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
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STATE OF COLORADO )
)
COUNTY OF LARIMER ) ss.
)
CITY OF FORT COLLINS )
I, Wanda Winkelmann, City Clerk of the City of Fort Collins, Colorado (the
“City”), do hereby certify the following:
1. The attached copy of Ordinance No. 081, 2017 (the “Ordinance”) is a true,
correct and complete copy thereof.
2. The Ordinance was introduced, read, and approved on first reading by the
City Council of the City (the “Council”) at a regular meeting thereof held at Council Chambers,
City Hall, 300 West LaPorte Avenue, Fort Collins, Colorado, the regular meeting place thereof,
on Tuesday, the 6th day of June, 2017, by the members of the Council as follows:
Name “Yes” “No” Absent Recused
Wade Troxell, Mayor
Gerry Horak, Mayor
Pro-Tem
Bob Overbeck
Ray Martinez
Ken Summers
Kristin Stephens
Ross Cunniff
3. The Ordinance was duly published in full at least seven days before its
final passage on the City’s official internet web site. In addition, the Ordinance was duly
published by number and title only, together with a statement that the text thereof was available
for public inspection and acquisition in the office of the City Clerk of the City and on the City’s
internet web site, in the Coloradoan, a newspaper of general circulation published in the City in
its issue of June __, 2017, as evidenced by the certificate of the publisher attached hereto as
Exhibit A. Both publications contained a notice giving the date when the Ordinance would be
presented for final passage.
4. The Ordinance was read and finally passed on second reading, without
amendment, by the Council at a regular meeting thereof held at Council Chambers, City Hall,
300 West LaPorte Avenue, Fort Collins, Colorado, the regular meeting place thereof, on
Tuesday, the 5th day of July, 2017, by the members of the Council as follows:
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Name “Yes” “No” Absent Recused
Wade Troxell, Mayor
Gerry Horak, Mayor
Pro-Tem
Bob Overbeck
Ray Martinez
Ken Summers
Kristin Stephens
Ross Cunniff
5. Following its final passage, the Ordinance was duly published in full on the City’s
official internet web site within seven days following its final passage. In addition, a notice of
the final passage of the Ordinance was duly published in the Coloradoan, a newspaper of general
circulation published in the City, in its issue of July __, 2017, as evidenced by the certificate of
the publisher attached hereto as Exhibit B.
6. A true copy of the Ordinance has been authenticated by the signatures of the
Mayor of the City and myself as City Clerk, sealed with the seal of the City, and numbered and
recorded in a book marked “Ordinance Record” kept for that purpose in my office.
IN WITNESS WHEREOF, I have hereunto set my hand and the seal of the City of Fort
Collins, Colorado this _____ day of _________, 2017.
_____________________________
City Clerk
(SEAL) City of Fort Collins, Colorado
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Exhibit A
(Attach certificate of publication of Ordinance after first reading)
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Exhibit B
(Attach certificate of publication of Ordinance after final passage)
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ORDINANCE NO. 082, 2017
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROPRIATING THE LEASE FINANCING PROCEEDS IN THE
CAPITAL PROJECTS FUND TO BE USED FOR THE PURCHASE OF
A PORTION OF THE FIREHOUSE ALLEY PARKING STRUCTURE
AND TO PAY FOR RELATED LEASE FINANCING COSTS
WHEREAS, on November 17, 2015, City Council adopted Resolution 2015-101
approving a Construction and Purchase Agreement (the “Purchase Agreement”) for the City’s
purchase of parking spaces in the proposed Jefferson Street Parking Structure (now called the
“Firehouse Alley Parking Structure”); and
WHEREAS, the proposed financing method for that purchase is a lease-lease back
transaction with the issuance of certificates of participation and with the City’s Senior Center
being used as the leased property for this transaction (the “Lease Financing”); and
WHEREAS, the City and the Downtown Development Authority (“DDA”) will also be
entering into an intergovernmental agreement (the “Agreement”) for the DDA’s contribution
of $300,000 per year towards lease payments under the Lease Financing beginning in 2019;
and
WHEREAS, the City will acquire approximately 216 parking spaces located on the
second and third floors of the parking structure; and
WHEREAS, the closing on the Lease Financing is scheduled for July 18, 2017, and
acquisition of the parking spaces under the Purchase Agreement is anticipated to occur in
August or September 2017; and
WHEREAS, the Lease Financing will provide $8.43 million in proceeds to be repaid
over a lease term of 10 years at 2.48% interest with lease payments to begin in 2018 and going
through 2027 and with average annual payments of $962,000; and
WHEREAS, starting after June 1, 2018, General Fund monies previously used for
lease payments for the Civic Center Parking Structure and the 215 North Mason
Administrative building lease-purchase financing will be used for payment of the Lease
Financing; and
WHEREAS, Article V, Section 9, of the City Charter permits the City Council to
make supplemental appropriation by ordinance at any time during the fiscal year, provided
that the total amount of such supplemental appropriation, in combination with all previous
appropriations for that fiscal year, does not exceed the current estimate of actual and
anticipated revenues to be received during the fiscal year; and
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
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Section 1. That the City Council hereby makes and adopts the determinations
and findings contained in the recitals set forth above.
Section 2. That there is hereby appropriated from the anticipated Lease Financing
proceeds in the Capital Projects Fund the sum of EIGHT MILLION FOUR HUNDRED
THIRTY THOUSAND DOLLARS ($8,430,000) for the purchase of a portion of the
Firehouse Alley Parking Structure and payment of Lease Financing costs.
Introduced, considered favorably on first reading, and ordered published this 6th day of
June, A.D. 2017, and to be presented for final passage on the 5th day of July, A.D. 2017.
__________________________________
Mayor
ATTEST:
_____________________________
City Clerk
Passed and adopted on final reading on this 5th day of July, A.D. 2017.
__________________________________
Mayor
ATTEST:
_____________________________
City Clerk
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RESOLUTION 2017-062
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE CITY MANAGER TO EXECUTE AN INTERGOVERNMENTAL
AGREEMENT WITH THE DOWNTOWN DEVELOPMENT AUTHORITY REGARDING
CONTRIBUTIONS TO THE CITY FOR PUBLIC PARKING SPACES AND PARKING
PROGRAMS IN DOWNTOWN FORT COLLINS
WHEREAS, the City of Fort Collins, Colorado (the “City”) is a duly organized and
existing home rule municipality of the State of Colorado, created and operating pursuant to
Article XX of the Constitution of the State of Colorado and the home rule charter of the City (the
“Charter”); and
WHEREAS, the City is authorized by Article II, Section 16 of the Charter and C.R.S.§
29-1-203 to enter into agreements with other governmental entities to cooperate in providing
public services and facilities authorized to be provided by the City and the other governmental
entity and to share the costs of providing such services and facilities; and
WHEREAS, the City’s Parking Plan approved by the City Council with the adoption of
Resolution 2013-002, dated January 15, 2013, projects that an additional nine hundred (900) off-
site public parking spaces will be needed by 2023, with a potential need for an additional six
hundred (600) such spaces within the same timeframe, so having adequate parking in the City’s
downtown area is a substantial concern for the City; and
WHEREAS, in light of this concern, the City has taken steps to acquire approximately
216 parking spaces in a parking facility that is being constructed by Bohemian Companies in
connection with a hotel development project in downtown Fort Collins and to use these spaces
for public parking (the “Public Parking Spaces”); and
WHEREAS, the City will finance the acquisition of the Public Parking Spaces by
entering into a lease-lease back transaction which will provide the funds to purchase the Public
Parking Spaces (the “Lease Financing”); and
WHEREAS, it is expected that the Public Parking Spaces will be completed sometime in
August 2017 and the City will acquire ownership of them within thirty days after such
completion; and
WHEREAS, maintaining adequate levels of public parking within its boundaries is also a
matter of substantial concern for the Fort Collins Downtown Development Authority (the
“DDA”) and the City; and
WHEREAS, pursuant to C.R.S. 31-25-807(2)(d), the Board of Directors of the DDA (the
“DDA Board”) has the power to plan and propose public facilities within the boundaries of the
DDA and, in accordance with C.R.S. 31-25-802(8), public facilities specifically include parking
facilities; and
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WHEREAS, the DDA Plan of Development, approved and adopted by the City Council
with its adoption of Resolution 1981-129 on September 8, 1981, identifies maintaining adequate
levels of parking as a purpose and objective of the DDA, and provides as a plan of development
project the creation of a “parking program to provide sufficient public parking to service all
occupants and owners within the DDA’s boundaries including, but not limited to, the
following…construction of parking garages and lots concentrating on areas of present parking
deficiencies and such areas as may require parking facilities in connection with projects
undertaken hereafter”; and
WHEREAS, the City’s acquisition cost for the Public Parking Spaces will be
approximately $8,430,000; and
WHEREAS, the availability of the Public Parking Spaces will provide a substantial
benefit to the DDA and the DDA has agreed to make contributions in thirteen annual
installments to the City totaling $3,900,000 to defray the City’s Lease Financing costs to acquire
the Public Parking Spaces; and
WHEREAS, to evidence DDA’s agreement to provide the City with this additional
funding for the City’s payment of the Lease Financing, the City and DDA desire to enter into the
“Intergovernmental Agreement Regarding DDA Contributions to the City Public Parking Spaces
and Parking Programs in Downtown Fort Collins” attached hereto as Exhibit “A” and
incorporated herein by reference (the “IGA”); and
WHEREAS, the City Council hereby finds that entering into the IGA will be in the best
interest of the City and its residents and is necessary for the public’s health, safety and welfare.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. That the City Council hereby makes and adopts the determinations and
findings contained in the recitals set forth above.
Section 2. That the IGA is hereby approved and the City Manager is hereby
authorized to execute the IGA in substantially the form attached hereto as Exhibit “A,” with such
modifications and additions as 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 set forth herein and not otherwise inconsistent with this Resolution.
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Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 5th
day of July, A.D. 2017.
_________________________________
Mayor
ATTEST:
_____________________________
City Clerk
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INTERGOVERNMENTAL AGREEMENT
REGARDING DDA CONTRIBUTIONS TO THE CITY FOR PUBLIC PARKING SPACES
AND PARKING PROGRAMS IN DOWNTOWN FORT COLLINS
THIS INTERGOVERNMENTAL AGREEMENT (“IGA”) is made and entered into on
the date set forth below 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 municipal corporation (the “City”).
WHEREAS, maintaining adequate levels of public parking within the boundaries of the
DDA (the “DDA District”) is a matter of substantial concern to the DDA and the City;
WHEREAS, pursuant to C.R.S. 31-25-807(2)(d) the Board of Directors of the DDA (the
“DDA Board”) has the power to plan and propose public facilities within the DDA District and,
in accordance with C.R.S. 31-25-802(8), public facilities specifically include parking facilities;
WHEREAS, the DDA Plan of Development, approved on September 8, 1981, identifies
maintaining adequate levels of parking as a purpose and objective of the DDA, and provides as a
plan of development project the creation of a “parking program to provide sufficient public
parking to service all occupants and owners within the [DDA] District including, but not limited
to, the following…construction of parking garages and lots concentrating on areas of present
parking deficiencies and such areas as may require parking facilities in connection with projects
undertaken hereafter”;
WHEREAS, the City’s Parking Plan, dated January 15, 2013, projects that an additional
nine hundred (900) off-site public parking spaces will be needed by 2023, with a potential need
for an additional six hundred (600) such spaces within the same timeframe;
WHEREAS, the Bohemian Companies, McWhinney Enterprises and Sage Hospitality
(the “Developers”) are currently constructing a hotel in Downtown Fort Collins at 363 Jefferson
Street and, in connection therewith, a parking structure adjacent to the hotel containing
approximately three hundred thirty-five (335) parking spaces (the “Parking Structure”);
WHEREAS, the City and the Developers have entered into a public/private partnership
regarding the Parking Structure pursuant to which the City has agreed to purchase an
approximately sixty-four percent (64%) interest in the Parking Structure (the “Ownership
Interest”), which will enable the City to utilize approximately two hundred sixteen (216) of the
parking spaces as public parking spaces (the “Public Parking Spaces”);
WHEREAS, it is expected that the Parking Structure will be completed sometime in
August 2017 and the City will acquire the Ownership Interest within thirty (30) days after such
completion;
EXHIBIT A
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WHEREAS, the estimated cost to construct the Parking Structure is twelve million four
hundred thousand dollars ($12,400,000), with the City’s estimated acquisition cost of the
Ownership Interest being eight million three hundred thousand dollars ($8,300,000);
WHEREAS, the availability of the Public Parking Spaces will provide a substantial
benefit to the DDA District and the DDA desires to make contributions to the City totaling Three
Million Nine Hundred Thousand Dollars ($3,900,000) to defray the costs incurred by the City in
acquiring the Ownership Interest and in creating and implementing certain parking programs
providing additional benefits to the DDA District, in return for certain commitments from the
City regarding the Public Parking Spaces and such parking programs;
WHEREAS, pursuant to C.R.S. §31-25-808(g), the DDA is empowered to make
contributions, grants, and loans to the City which advance the statutory mission of the DDA; and
WHEREAS, contributing funds to the City for the purposes described herein will
advance the statutory mission of the DDA and the DDA’s Plan of Development and will serve
the purposes of the City’s Parking Plan.
NOW, THEREFORE, in consideration of the mutual promises and other good and
valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties
hereto agree as follows:
1. Term. This IGA shall commence upon execution and continue through December
31, 2031.
2. DDA Contributions. Subject to the conditions and limitations contained in
Sections 3 and 4 below, the DDA agrees to contribute to the City the maximum sum of Three
Million Nine Hundred Thousand Dollars ($3,900,000), payable in thirteen (13) annual
installments of Three Hundred Thousand Dollars ($300,000), with the first such installment
being due on December 1, 2019, and the final installment being due on December 1, 2031
(“Annual DDA Contribution(s)”), to be used by the City exclusively for the following purposes:
A. Servicing of the debt incurred by the City for its acquisition of the Ownership
Interest in the Parking Structure, up to a maximum amount of Two Million
Seven Hundred Thousand Dollars ($2,700,000); and
B. For the lease or purchase of real property (or an interest therein), or capital
improvements to such property, that are directly linked to the creation and
operation of a transportation demand management system providing permit
parking in close proximity to MAX Bus Rapid Transit (“Max”) station areas
for employees of businesses located within the DDA District, thereby
allowing such employees to park their vehicles and ride Max to Downtown
Fort Collins rather than utilizing public parking spaces in the Downtown Fort
Collins area (the “TDM Program”).
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3. Conditions on DDA Contributions. The DDA’s obligation to make, and the
City’s right to retain, Annual DDA Contributions are subject to the following terms and
conditions:
A. The City must acquire the Ownership Interest in the Parking Structure prior to
December 1, 2019, or payment of Annual DDA Contributions shall not
commence until such time as the City acquires such interest;
B. The City shall use Annual DDA Contributions only for the purposes identified
in Section 2 above; any Annual DDA Contribution, or part thereof, not
expended by the City for such purposes shall be promptly returned to the
DDA;
C. At least one hundred (100) of the Public Parking Spaces shall remain available
for use by the general public on a first-come, first-served basis throughout the
term of this IGA;
D. If the DDA is not obligated under this IGA to make an Annual DDA
Contribution on December 1 of any given year during the term hereof,
including, by way of example and not of limitation, due to the City’s failure to
acquire the Ownership Interest in the Parking Structure prior to December 1,
2019 (as required by Section 1 above) or the unavailability of the Line of
Credit (as defined in Section 4 below), then the DDA’s obligation to make
such Annual DDA Contribution in such year shall be deemed waived; and
E. All financial obligations of the DDA arising under this IGA that are payable
after the current fiscal year are contingent upon funds for that purpose being
annually appropriated, budgeted and otherwise made available by the DDA
Board, in its discretion, and the City Council of the City, in its discretion.
4. Source of DDA Funds. The parties hereto agree that Annual DDA Contributions
shall be made from the DDA’s revolving line of credit through First National Bank of Omaha
which was established by the intergovernmental agreement between the DDA and the City
entitled “Intergovernmental Agreement Governing a Line of Credit for Financing Downtown
Development Authority Projects and Programs” dated October 15, 2012, or other annual
revolving line of credit established pursuant to the terms of said intergovernmental agreement
(the “Line of Credit”). The DDA’s obligation to make Annual DDA Contributions is expressly
contingent upon the continued availability of the Line of Credit. In the event the Line of Credit is
no longer available to the DDA due to termination, expiration or for any other reason, the DDA
shall have no obligation to make any Annual DDA Contribution due subsequent to the date the
DDA lost access to the Line of Credit.
5. City’s Commitment to TDM Program. In consideration of the Annual DDA
Contributions, the City agrees that it will in good faith work to expedite the creation and
implementation of the TDM Program, and in connection therewith, consult and collaborate with
the DDA on the same.
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6. Accounting. Upon written request of the DDA, the City shall provide to the DDA
documentation sufficient for the DDA to determine that Annual DDA Contributions were
expended by the City in a manner consistent with this IGA.
7. 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: Liley Law Offices, LLC
Attn: Lucia A. Liley, Esq.
419 Canyon Avenue, Suite 220
Fort Collins, CO 80521
CITY: City of Fort Collins
Attn: City Manager
215 N. Mason Street
Fort Collins, CO 80521
With a copy to: City of Fort Collins
Attn: City Attorney
300 LaPorte Avenue
Fort Collins, CO 80521
8. Governing Law. This IGA shall be governed by, and its terms construed under,
the laws of the State of Colorado.
9. No Third Party Beneficiaries. It is the mutual intent of the parties hereto that this
IGA shall inure to the benefit of only the parties hereto. Accordingly, nothing in this IGA shall
be construed as creating any right or entitlement which inures to the benefit of any third party.
10. Enforceability. The parties hereto recognize that there are legal constraints
imposed upon them by the constitution, statutes, and rules and regulations of the State of
Colorado and of the United States, and imposed upon them by their respective governing
statutes, charters, ordinances, rules and regulations, and that, subject to such constraints, the
parties intend to carry out the terms and conditions of this IGA. Nothing herein to the contrary
withstanding, in no event shall either of the parties be obligated hereunder to exercise any power
or take any action that is be prohibited by applicable law. Whenever possible, each provision of
this IGA shall be interpreted in such a manner so as to be effective and valid under applicable
law.
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IN WITNESS WHEREOF, the parties hereto have executed this IGA the day and year of
the last signature below written.
THE FORT COLLINS, COLORADO,
DOWNTOWN DEVELOPMENT
AUTHORITY, a body corporate and politic.
By: ____________________________________
Justin Larson, Chairperson
Date: ____________________
ATTEST:
____________________________
Cheryl Zimlich, Secretary
THE CITY OF FORT COLLINS,
COLORADO, a municipal corporation
By: ____________________________________
Darin Atteberry, City Manager
Date: ____________________
APPROVED AS TO FORM:
__________________________________
Deputy City Attorney
ATTEST:
__________________________________
Wanda Winkelmann, City Clerk