Loading...
HomeMy WebLinkAboutMINUTES-10/05/1999-RegularOctober 5,1999 COUNCIL OF THE CITY OF FORT COLLINS, COLORADO Council -Manager Form of Government Regular Meeting - 6:00 p.m. A regular meeting of the Council of the City of Fort Collins was held on Tuesday, October 5, 1999, at 6:00 p.m. in the Council Chambers of the City of Fort Collins City Hall. Roll Call was answered by the following Councilmembers: Bertschy, Byrne, Kastein, Martinez, Mason, and Weitkunat. Councilmembers Absent: Wanner. Staff Members Present: Fischbach, Krajicek, Roy. Citizen Participation Richard Dunn, 1405 Lindenwood Drive, read a prepared statement regarding the truck route ballot issue and the relocation of Highway 14. John Meleski, 2619 Featherstar Way, asked about the Council's Study Session discussions of the boards and commissions and truck route issues. Joe Dumais,1712 Westview Road, spoke regarding the truck route ballot issue and the use ofunused Building Community Choices funds to find a viable truck route outside of the City. Citizen Participation Follow-up Councilmember Byrne spoke regarding transportation planning, the gap in funding for construction of Vine as an arterial street, and the use of residual Building Community Choices funds. Councilmember Kastein spoke regarding options for determining the use of Building Community Choices funds if the truck route initiative fails. Councilmember Weitkunat stated that it is likely that the truck route issue will continue to come before Council until it is resolved. Agenda Review City Manager Fischbach withdrew item #12 Items Relating to the Alternative Analysis and Construction oflntersection Improvements at the intersection of State Highway 14 (Mulberry) and 466 October S, 1999 Lemay Avenue Utilizing Federal Congestion Mitigation and Air Quality (CMAQ) Funds from the agenda. Kelly Ohlson, 2040 Bennington Circle, withdrew item #11 Items Relating to the Issuance of City of Fort Collins Downtown Development Authority Subordinate Tax Increment Revenue Bonds, Series 1999 from the Consent Calendar for discussion. CONSENT CALENDAR 7. Consideration and adoption of the Council meeting minutes of September 7 1999 Second Reading of Ordinance No 146 1999 Appropriating Unanticipated Revenue in the Transportation Services Fund and Authorizing the Transfer ofAppropriations for the Puroose of Updating Access Control Plans for South College Avenue and Harmony Road. Ordinance No. 146, 1999, which was unanimously adopted on First Reading on September 21, 1999, appropriates unanticipated revenue for the purpose of updating the Access Control Plans (ACPs) for South College (US287) and Harmony Road (SH68). 9. Items Relating to the Appropriation of Proceeds from the Execution and Delivery of City of Fort Collins Lease Certificates of Participation Series 1999 A. First Reading of Ordinance No. 147, 1999, Appropriating Proceeds from the Execution and Delivery of City of Fort Collins Lease Certificates of Participation for the Golf Enterprise Fund for Golf Course Improvements. B. First Reading of Ordinance No. 148, 1999, Appropriating Proceeds from the Execution and Delivery of City of Fort Collins Lease Certificates of Participation in the Capital Projects Fund for the Downtown Intersection Renovation Project. On September 7,1999, Council authorized the execution and deliveryof $3,360,000 of lease certificates ofparticipation for Street and Recreational Improvements. The proceeds are now being allocated specifically to the projects for which the certificates were issued. 10. First Reading of Ordinance No 149 1999 Appropriating Prior Year Reserves and Unanticipated Revenue in Various Funds and Authorizing the Transfer of Appropriated Amounts Between Funds. The purpose of the annual clean-up ordinance is to combine dedicated revenues or reserves that need to be appropriated before the end of the year to cover the related expenses that were 467 October 5, 1999 not anticipated and, therefore not included in the 1999 budget. The unanticipated revenue is primarily from fees, charges, rents, contributions and grants that have been paid to City departments to offset specific expenses. Prior year reserves are primarily being appropriated for unanticipated operation expenses from reserves that are aside for that purpose. This Ordinance appropriates prior year reserves and unanticipated revenue in various City funds, and authorizes the transfer of appropriated amounts between funds. The City Charter permits the City Council to provide by ordinance for payment of any expense from prior year reserves. The Charter also permits the City Council to appropriate unanticipated revenue received as a result of rate or fee increases or new revenue sources. Additionally, it authorizes the City Council to transfer anyunexpended appropriated amounts from one fund to another upon recommendation of the City Manager provided the purpose for which the transferred funds are to be expended remains unchanged; or the purpose for which they were initially appropriated no longer exists; or the proposed transfer is from a fund or capital project account in which the amount appropriated exceeds the amount needed to accomplish the purpose specified in the appropriation ordinance. 11. Items Relating to the Issuance of City of Fort Collins Downtown Development Authority Subordinate Tax Increment Revenue Bonds Series 1999. A. First Reading of Ordinance No. 150, 1999, Authorizing the Issuance of City of Fort Collins Downtown Development Authority Taxable Subordinate Tax Increment Revenue Bonds Series 1999 in the Amount of $750,000 for the Purpose of Financing Certain Capital Improvements and Capital Projects. B. First Reading of Ordinance No. 151, 1999, Appropriating Proceeds from the Issuance of City of Fort Collins, Colorado, Downtown Development Authority Taxable Subordinate Tax Increment Revenue Bonds, Series 1999, for the Purpose of Making Certain Capital Improvements in the Downtown Area of Fort Collins and Appropriating Revenues in the Tax Increment Fund. The City of Fort Collins created the Downtown Development Authority to make desired improvements in the downtown area. Through tax increment financing, the DDA has made significant contributions to the redevelopment and improvement of the downtown area. These two Ordinances provide funding from unreserved fund balance in the DDA Debt Service Fund to make additional improvements in the downtown area. The first Ordinance issues short term bonds for the projects which will be paid from the tax increment revenue. The second Ordinance appropriates the proceeds in to the Capital Projects Fund for the various projects. MIT] October 5, 1999 12. Items Relating to the Alternative Analysis and Construction of Intersection Improvements at the Intersection of State Highway 14 (Mulberry) and Lemay Avenue Utilizing Federal Congestion Mitigation and Air Ouality (CMAO) Funds. A. Resolution 99-117 Authorizing the Mayor to Execute an Intergovernmental Agreement with the Colorado Department of Transportation Allocating $1,375,721 for the Analysis and Determination of Appropriate Intersection Improvements and the Construction of Said Improvements at the Intersection of State Highway 14 and Lemay Avenue. B. First Reading of Ordinance No. 152,1999, Appropriating Unanticipated Revenue and Prior Year Reserves in the Transportation Services Fund and Authorizing the Transfer of Appropriations from the Street Oversizing Fund to the Transportation Services Fund for the Analysis and Determination of Appropriate Intersection Improvements and the Construction of Improvements at the Intersection of State Highway 14 and Lemay Avenue. The City of Fort Collins successfully applied for Federal CMAQ funds for an Alternative Analysis of intersection improvements and the construction of those determined improvements at the intersection of SH14 and Lemay Avenue. The intersection is currently experiencing both delay and accident problems. Pedestrian connectivity is also an existing problem and this project will build a pedestrian bridge across the Poudre River and sidewalk along Mulberry to connect Lemay to Riverside. Approximately $300,000 of the project is dedicated to these pedestrian improvements. The proposed Mulberry Lemay Crossing project (WalMart) will add considerable traffic to an existing problem. Although the Mulberry Lemay Crossing PUD will be financially responsible for traditional improvements to the intersection, staff is also interested in investigating the design of a modem roundabout at this location. The analyses will consider traditional improvements such as right turn lanes and double left turn lanes against a modern roundabout intersection. 13. Resolution 99-118 Finding Substantial Compliance and Initiating Annexation Proceedings for the Brookfield Annexation. This is a request for a 100% voluntary annexation. The property being considered for annexation is approximately 43.01 acres in size and is located south of East Harmony Road, east of Cinquefoil Lane alignment, west of County Road 7 and north of County Road 36. The existing uses of the properties are agricultural in Latimer County. The proposed zoning for this annexation is Harmony Corridor District (HC). October 5, 1999 The proposed Resolution states that it is the City's intent to annex this property and directs that the published notice required by State law be given of the Council's hearing to consider the needed annexation ordinance. The hearing will be held at the time of First Reading of the annexation and zoning ordinances on November 16,1999. Not less than thirty days prior published notice is required by State law. 14. Routine Easements. A. Slope easement from D.A. and Zenith L. Khanzada, located west of Shields and north of La Eda Lane. Monetary consideration: $10. (See Map #1) B. Permanent storm drainage easement from Larry D. and Barbara J. Wilson, located between Trilby and La Eda Lane. Monetary consideration: $0. (See Map #2) C. Temporary drainage and grading easement from Dalco, LLLC, located west of Shields. Monetary consideration: $10. (See Map #3) D. Temporary drainage and grading easement from Dalco, LLLC, located west of Shields and south of Trilby. Monetary consideration: $10. (See Map #4) E. Drainage and grading easement from Dalco, LLLC, located east of Shields and south of Trilby. Monetary consideration: $10. (See Map #5) F. Drainage easement from Dalco, LLLC, located east of Shields and south of Trilby. Monetary consideration: $10. (See Map #6) G. Drainage easement from Dalco, LLLC, located south of Trilby and northwest of the railroad tracks. Monetary consideration: $10. (See Map #7) H. Slope easement from Mike and Cheryl Peregoy, located west of Shields and north of Trilby. Monetary consideration: $10. (See Map #8) Temporary grading easement from Marvin G. and Dolores C. Heinrichs, located south of Trilby and east of County Road 19. Monetary consideration: $10. (See Map #9) Slope easement from Bob Sendgraff, located west of Shields and north of Trilby. Monetary consideration: $10. (See Map #10) K. Slope easement from D.A. and Zenith L. Khanzada, located north of La Eda Lane and west of Shields. Monetary consideration: $10. (See Map #11) October 5, 1999 L. Right-of-way dedication from Dalco, LLLC, located east of Shields and south of Trilby. Monetary consideration: $10. (See Map #12) M. Right-of-way dedication from Dalco, LLLC, located along the south side of Trilby and east of Shields. Monetary consideration: $10. (See Map #13) N. Right-of-way dedication from Dalco, LLLC, located along the west side of Shields and north of Bonn Homme Richard. Monetary consideration: $10. (See Map #14) O. Right-of-way dedication from Dalco, LLLC, located along the west side of Shields and north of Bonn Homme Richard. Monetary consideration: $10. (See Map #15) Ordinances on Second Reading were read by title by City Clerk Wanda Krajicek. Second Reading of Ordinance No. 146, 1999, Appropriating Unanticipated Revenue in the Transportation Services Fund and Authorizing the Transfer ofApprooriations for the Purpose of Updating Access Control Plans for South College Avenue and Harmony Road. Ordinances on First Reading were read by title by City Clerk Wanda Krajicek. 9. Items Relating to the Appropriation of Proceeds from the Execution and Delivery of City of Fort Collins Lease Certificates of Participation Series 1999. A. First Reading of Ordinance No. 147, 1999, Appropriating Proceeds from the Execution and Delivery of City of Fort Collins Lease Certificates of Participation for the Golf Enterprise Fund for Golf Course Improvements. B. First Reading of Ordinance No. 148, 1999, Appropriating Proceeds from the Execution and Delivery of City of Fort Collins Lease Certificates of Participation in the Capital Projects Fund for the Downtown Intersection Renovation Project. 10. First Reading of Ordinance No. 149, 1999, Appropriating Prior Year Reserves and Unanticipated Revenue in Various Funds and Authorizing the Transfer of Appropriated Amounts Between Funds. 11. Items Relating to the Issuance of City of Fort Collins Downtown Development Authority Subordinate Tax Increment Revenue Bonds, Series 1999. A. First Reading of Ordinance No. 150, 1999, Authorizing the Issuance of City of Fort Collins Downtown Development Authority Taxable Subordinate Tax Increment Revenue Bonds Series 1999 in the Amount of $750,000 for the Purpose of Financing Certain Capital Improvements and Capital Projects. 471 October 5, 1999 B. First Reading of Ordinance No. 151,1999, Appropriating Proceeds from the Issuance of City of Fort Collins, Colorado, Downtown Development Authority Taxable Subordinate Tax Increment Revenue Bonds, Series 1999, for the Purpose of Making Certain Capital Improvements in the Downtown Area of Fort Collins and Appropriating Revenues in the Tax Increment Fund. Councilmember Bertschymade a motion, seconded by Councilmember Mason, to adopt and approve all items not withdrawn from the Consent Calendar. The vote on the motion was as follows: Yeas: Councilmembers Bertschy, Byme, Kastein, Martinez, Mason, and Weitkunat. Nays: None. THE MOTION CARRIED Consent Calendar Follow-up Councilmember Bertschy spoke regarding golf course improvements that will be accomplished through the adoption of item #9, Items Relating to the Appropriation of Proceeds from the Execution and Delivery of City of Fort Collins Lease Certificates of Participation Series 1999. Staff Reports City Manager Fischbach reported on the City's receipt of the Savvy Award for public information, receipt of awards for City Park Nine golf course, a Liquor Licensing Authority resignation, the BMX trails course on City property, and the new online reporting form called Eyes and Ears of Fort Collins. Mayor Martinez stated that he would request discussion under Other Business regarding the Liquor Licensing Authority resignation. Appeal of the August 5, 1999, Determination of the Planning and Zoning Board to Approve the Provincetowne PUD, Filing Two - Preliminary, Planning and Zoning Board Upheld The following is staff s memorandum on this item: "On August 5, 1999, the Planning and Zoning Board approved the Provincetowne PUD, Filing Two- Preliminary for 331 residential dwelling units (190 single family lots and 141 multi family townhomes) on 70.00 acres. The property is zoned LMN - Low Density Mixed Use Neighborhood (as of the effective date of March 28, 1997 for the new Land Use Code). The property is located on the south side of Trilby Road at Brittany Drive, west of South Lemay Avenue, east of South College Avenue, and north of County Road 32. 472 October 5, 1999 On August 16, 1999, a Notice of Appeal was received by the City Clerk's office regarding the decision ofthe Planning and Zoning Board. An Amended Notice of Appeal was received by the City Clerk's office on September 3, 1999. In the Notice of Appeal from the Appellants David G. Evans, Doug Sparks, and Mark Menke, it is alleged that: I. No hearingjurisdiction conferred on Planning and Zoning Board, in that, execution by the City Manager of the Agreement of Purchase and Sale of Real Property (hereinafter "Purchase Agreement') by and between the City of Fort Collins and Pridemark Development Company, LLC, dated April 2, 1996, was specifically reserved by Section 4 of Ordinance No. 41, 1996, to the Mayor and not the City Manager. The execution of said Purchase Agreement by the City Manager violated the specific requirements of Section 4 of Ordinance No. 41, 1996 as well as the requirements of Section 23-111(a) ofthe Code ofthe City of Fort Collins which vests sole authority to sell real property upon the City Council pursuant to a duly enacted ordinance. IT No hearingjurisdiction conferred on Planning and Zoning Board, in that, execution by the City Manager, on or about April 12, 1995, of an agreement on behalf of the City of Fort Collins entitled "First Addendum to Agreement of Purchase and Sale of Property" (hereinafter "First Addendum') by and between the City of Fort Collins and Pridemark Development Company, LLC, adding Paragraph 27 to the Agreement of Purchase and Sale of Real Property dated April 2, 1996, was void, in that the First Addendum could not, as a matter of law, modify an executory agreement. III. No hearingjurisdiction conferred on Planning andZoningBoard, in that, delegation to City Manager of the power to sell the real property pursuant to Section 5 of Ordinance No. 41, 1996, was an improper delegation oflegislative discretion which violated the requirements of Section 23-111(a) ofthe Code ofthe City of Fort Collins which vests sole authority to sell real property upon the City Council pursuant to a duly enacted ordinance. IV. No hearing jurisdiction conferred on Planning and Zoning Board, in that, delegation to Pridemark Development Company, LLC of the power to restructure the sale of the real property from a purchase to an option to purchase pursuant to the First Addendum to Agreement ofPurchase and Sale ofReal Property, was an improper delegation oflegislative discretion which violated the requirements of Section 23-111(a) of the Code of the City of Fort Collins which vests sole authority to sell real property upon the City Council pursuant to a duly enacted ordinance. V. No hearingjurisdiction conferred on Planning and Zoning Board, in that, Applicant nor its predecessor in interest, as a matter of law and pursuant to filing requirements of Section 29- 526 — Land Development Guidance System for Planned Unit Developments and Ordinance No. 161, 1996 was the owner of the subject parcel of real property at the time of the filing on March 27, 1997, of the Application with the Current Planning Department requesting Planned Unit Development - Preliminary Plan approval and approval for a Preliminary 473 October 5, 1999 Subdivision Plat nor was Applicant given legal authority to execute the Application as filed nor prosecute such Application on beha f of the record owner, the City of Fort Collins. VI. No hearingjurisdiction conferred on Planning and Zoning Board, in that, Applicant nor its predecessor in interest, filed, in a timely manner, a complete application as required by Section 29-526 et seq. — Land Development Guidance System for Planned Unit Developments and Ordinance No. 161, 1996. VII. No hearingjurisdiction conferred on Planning and Zoning Board, in that, Applicant nor its predecessor in interest, as a matter of law and pursuant to filing requirements of Section 29- 526— LandDevelopment Guidance System for Planned Unit Developments and Ordinance No. 161, 1996 was the owner of the subject parcel of real property at the time of the filing on March 27, 1997, of the Application with the Current Planning Department requesting Planned Unit Development - Preliminary Plan approval and approval for a Preliminary Subdivision Plat nor was Applicant given legal authority to execute the Application as f led nor prosecute such Application on behalf of the record owner, the City of Fort Collins. VIII. No hearingjurisdiction conferred on Planning and Zoning Board, in that, the Planning and Zoning Board failed to give timely notice of August 5, 1999, hearing. IX. No hearingjurisdiction conferred on Planning and Zoning Board, in that, the notice of the Planning and Zoning Board dated July 19, 1999, for the hearing of August 5, 1999, was insufficient to conferjurisdiction upon the Planning and Zoning Board. X. Planning and ZoningBoardfailedtomakerequiredfindings,inthat,Section29-526Kofthe Land Development Guidance SystemforPlanned Unit Developments requires, "Thedecision of the Planning and Zoning Board on any application for a variance shall be set forth in writing in the minutes of the meeting of the Board". XI. Applicant failed to sustain the burden of proof in seeking the variance to the City of Fort Collins Solar Orientation Ordinance, in that, Applicant presented no evidence which would demonstrate that the granting of the variance would neither be detrimental to the public good nor impair the intent and purposes of Section 29-526(2)A-1/A-1.1 or that Applicant was entitled to the variance by reason of exceptional conditions or difficulties with regard to solar orientation or access, and that undue hardship would be caused to the Applicant by the strict application of the provisions of Section 29-526(2)A-11A-1.1. XII. The Planning and Zoning Board considered evidence which was substantially false or grossly misleading & Planning and Zoning Board failed to receive all relevant evidence offered by the Appellants. The attached documents include: 474 October 5, 1999 * Amended Appeal (dated and received September 3, 1999) * Staff response to the appeal * StaffReport, with recommendation, to the Planning and ZoningBoardforitsAugust5,1999 public hearing * HandoutspertainingtotheProvincetownePUD,FilingTwodevelopmentproposalthatwere presented to the Planning and Zoning Board at the August 5, 1999 public hearing * Minutes of the Meeting Before the Planning and Zoning Board, held Thursday, August 5, 1999 Theprocedures for deciding the appeals are described in Chapter 2, Article 11, Division 3 of the City Code. " City Attorney Roy explained the procedures for the hearing of appeals and the options available to the City Council after hearing the appeal. Mayor Martinez outlined the time limits for presentations and rebuttals by the appellants and opponents. Steve Olt, CityPlanner, presented a vicinity map showing the location of the subject property, stated that the property is zoned L-M-N, and outlined the history of consideration of the development proposal and the filing of the appeal. He summarized the 12 allegations set forth in the appeal. David G. Evans, 6806 Deerhurst Court, spokesperson for the appellants, asked that the City Council overturn the decision of the Planning and Zoning Board approving the Provincetowne PUD Filing 2 and granting a variance to the City Solar Orientation Ordinance. He asked that the Council take note of the 12 grounds of appeal set forth in the Notice of Appeal and stated that his presentation would focus on the following five grounds: (1) The Board lacked the requisite jurisdiction to conduct a hearing and render a decision in this matter in that the applicant had no legal or equitable interest in the real property which was the subject of the Board decision; (2) The Board lacked the requisite jurisdiction to conduct a hearing and render a decision in this matter in that the applicant had no legal or equitable interest in the real property subsequent to September 19, 1997 or subsequent to March 3, 1998; (3) The Board lacked the requisite jurisdiction to conduct a hearing and render a decision in this matter in that the notice of the Board dated July 19, 1999 failed to set forth with specificity the nature of the project and requested approval, nor did it specifically set forth that the applicant was seeking a solar orientation variance; (4) The Board failed to make the required findings relating to the granting of the solar orientation variance; and (5) The applicant failed to sustain the burden of proof in seeking a solar orientation variance. He presented details regarding specific issues relating 475 October 5, 1999 to each of these five presentation issues and spoke regarding the execution of an agreement of purchase and sale and addenda referenced in the appeal. Brock Chapman, representing the applicant Kaufinan & Broad, 8401 East Belleview Suite 200, Denver, Colorado 80237, introduced project team members. He stated that the applicant has reviewed the notice of appeal and a staff memo to City Council dated September 27, 1999. He asked for clarification that the staff memo is part of the public record. City Attorney Roy stated that the staff memo dated September 27, 1999 is part of the public record and that the question is whether the memo should be made part of the record of these proceedings or whether it is new evidence. Mayor Martinez inquired if there were any objections on the part of the appellants to the inclusion of the staff memo dated September 27, 1999 as part of the record for these proceedings. Mr. Evans agreed to the inclusion of the staff memo dated September 27, 1999 as part of the record for the purposes of having a full hearing on the matter. Mr. Chapman stated for the record that the applicant, Kaufinan & Broad, is in full and complete agreement with the September 27,1999 staff memo to the City Council. He stated that the purchase contract and subsequent addenda referenced in the appeal were executed and approved properly in accordance with the City Code, and therefore the purchase agreement is valid and binding and gives the applicant proper ownership and interest in the property. He stated that the City Manager acted with proper delegation of authority from the City Council and that the applicant filed the application with full knowledge, authority and consent from the owner (the City). In addition, the applicant at the time of filing of the application was an owner in equitable interest in the subject property. He stated that the applicants clearly received actual notice of the public hearing and that the solar orientation variance request is not required to be listed in the notification of public hearing. He noted that information regarding storm drainage was heard by the Planning and Zoning Board prior to a vote. He stated that based on the information contained in the public record and the information presented at this appeal hearing, the Board properly interpreted and applied the Code and/or Charter in reaching a unanimous decision approving the Provincetowne application. He stated that the Board conducted a fair hearing, operated within its jurisdiction and authority, followed its rules and procedures, considered evidence relevant to its findings, and properly heard all relevant information offered by the appellant. He urged Council to reference the staff memo of September 27, 1999, carefully consider the facts, the recommendation of the staff, and the unanimous decision of the Planning and Zoning Board. Mr. Evans, representing the appellant, asked that all of the grounds for appeal set forth in the notice of appeal be considered. !yI' October 5, 1999 Mr. Chapman, representing the applicant, stated that the solar orientation variance was requested as a result of comments received throughout the design process and spoke regarding conformance with the City street standards. Councilmember Mason asked about the change that required the variance to the solar orientation with respect to the inclusion of alleyways and street access. Sherri Wamhoff, Development Review Civil Engineer, stated that the City's street standards provide that the use of a narrow residential street requires the use of an alley for driveway access and that the development plan was modified to meet the standards and requirements. Councilmember Mason asked how frequently solar orientation variances are requested. Olt stated that a number of requests for such variances have been received by the City. Councilmember Weitkunat asked about the process to be followed in Council's consideration of the appeal. City Attorney Roy stated that the Council would need to address the question of whether the appellant was denied a fair hearing for any of the reasons stated, and if the Council finds that there was a fair hearing it would need to address any allegations regarding failure to properly interpret and apply the Code. Councilmember Weitkunat asked for clarification concerning the grounds regarding jurisdictional questions and ownership ofthe property. City Attorney stated that the Council has received evidence from both the appellant and staff regarding these matters. Councilmember Kastein asked about drainage issues discussed by the Planning and Zoning Board. Glenn Schleuter, Senior Stormwater Engineer for Development Review, spoke regarding stormwater issues for the development. Mayor Martinez asked about drainage for the development. Schleuter described the roadside drainage ditch and culverts and the easement dedicated for stormwater purposes. Councilmember Kastein asked about the requirements for notice of the Planning and Zoning Board hearing. Paul Eckman, Deputy City Attorney, outlined the Code requirements for such notice. Mr. Evans spoke regarding Constitutional interpretations and court rulings regarding notice of hearings. Mayor Martinez asked about the allegation that the notice was not timely. Olt stated that the notice was dated July 19, 1999 and postmarked 16 days prior to the public hearing on July 20, 1999 and that the public hearing occurred on August 5, 1999. City Manager Fischbach stated that this was proper notice. City Attorney Roy stated that the question before Council is whether the fact that one kind of notice was late or that the notice failed to specifically identify the fact that there would be a request for a variance deprived the appellants of a fair hearing. He stated that staff has taken the 477 October 5, 1999 position that the notice was legally adequate and spoke regarding case law which has generally found that notice issues are moot when someone has a reasonable opportunity to be heard and does show up at the hearing. Eckman stated that the Constitutional requirements for notice can be met by publication and posting. Mr. Evans stated that the public participation portion of the Planning and Zoning Board meeting was closed before the variance and drainage issues were brought to the floor for discussion. Eckman stated that the staff report of August 5, 1999 included information regarding the variance and was available for public inspection. Councilmember Mason asked when and how the staff reports are made available. Olt stated that staff reports are printed two weeks prior to the public hearing and are available for public inspection a week and a halfprior to the hearing. City Manager Fischbach stated that according to the transcript the variance was first noted during the staff presentation which occurred prior to the applicant's and public's testimony. Mayor Martinez asked for clarification regarding how such information is made public. Bob Blanchard, Director of Current Planning, stated that staff reports and other records are routinely available to the public in advance of hearings. Councilmember Weitkunat asked about the notification regarding variances. Blanchard stated that a variance would be requested during the development review process and that such request becomes part of the record and staff presentations. Mr. Chapman stated that the staff presentation prior to the public hearing clearly stated that a variance was being requested. He requested additional staff clarification regarding storm drainage issues. Councilmember Weitkunat suggested a process for considering and making a determination regarding each of the grounds. Councilmember Bertschy asked for clarification regarding the continuation of input from the appellant and opponent. City Attorney Roy stated that at this point in the proceedings it is appropriate for staff or any of the parties -in -interest to respond to specific questions of the Council. Mayor Martinez requested additional information regarding storm drainage issues. Schleuter spoke concerning drainage ditch issues. Mark Menke, 901 Deerhurst Circle, appellant, addressed concerns regarding drainage basins and drainageways. 478 October 5, 1999 Councilmember Bertschy noted that several grounds relate to jurisdictional issues and asked for clarification regarding authority to execute property acquisition agreements. City Attorney Roy stated that real estate transactions are typically handled by the execution by the City Manager of a contingent agreement for the sale of City property subject to Council approval. Councilmember Weitkunat made a motion, seconded by Councilmember Bertschy, to find that the Planning and Zoning Board had jurisdiction to hear the application and that the appellant was not denied a fair hearing. Councilmember Weitkunat stated that the process with regard to the real estate agreement followed standard procedure and that physical evidence has been received that resolve the jurisdictional and property ownership questions. The vote on the motion was as follows: Yeas: Councilmembers Bertschy, Byrne, Kastein, Martinez, Mason, and Weitkunat. Nays: None. THE MOTION CARRIED Councilmember Kastein made a motion, seconded by Councilmember Weitkunat, to find that the appellants were not denied a fair hearing because of deficiencies in the notice, that the evidence presented was not grossly misleading or false, and that the Board did properly receive all relevant evidence. Councilmember Mason asked about the nature of the notice required by the LDGS. Eckman stated that the notice is not required by the Constitution and is required by the LDGS, which also states that failure to mail the notice will not affect the validity of the hearing. Mayor Martinez expressed a concern regarding the testimony of the appellant that notice was not sufficient regarding the variance. Councilmember Kastein noted that the solar variance was mentioned in the staff presentation and that information about the variance was included in the staff report which was available for public inspection. Councilmember Mason spoke regarding the development review process, efforts made to provide notification regarding hearings, and the need for neighborhoods to review the constantly changing files that are available for inspection. The vote on the motion was as follows: Yeas: Councilmembers Bertschy, Byrne, Kastein, Mason, and Weitkunat. Nays: Mayor Martinez. THE MOTION CARRIED 479 October 5, 1999 Councilmember Weitkunat made a motion, seconded by Councilmember Bertschy, to find that the Planning and Zoning Board did properly interpret and apply all relevant provisions of the Charter and Code with regard to the timely filing and completeness of the application and did conduct a fair hearing. Councilmember Kastein asked about the PUD submittal checklist. Olt spoke regarding the checklist and submittal process. Blanchard spoke regarding the difference between completeness and adequacy of applications. Councilmember Mason asked if the Current Planning Department uses a written checklist for submittals. Blanchard stated that written checklists are used and that a checklist is part of the record for this development. The vote on the motion was as follows: Yeas: Councilmembers Bertschy, Byrne, Kastein, Martinez, Mason, and Weitkunat. Nays: None. THE MOTION CARRIED Councilmember Weitkunat asked about the procedure for making findings for variances. Eckman stated that the LDGS requires that the decision of the Board shall be set forth in writing in the meeting minutes and sets forth the conditions for granting of a variance. He spoke regarding the implicit adoption of findings set out in the staff report. Councilmember Weitkunat made a motion, seconded by Councilmember Kastein, to find that the Planning and Zoning Board properly interpreted and applied all relevant provisions of the Code and Charter with regard to the variance findings and did conduct a fair hearing. Mayor Martinez expressed a concern that no findings were stated by the Board. Councilmember Mason noted that the Board receives a staff report, and the Board implicitly votes in the affirmative to the items included in the staff report. The vote on the motion was as follows: Yeas: Councilmembers Bertschy, Byrne, Kastein, Mason, and Weitkunat. Nays: Mayor Martinez. THE MOTION CARRIED Councilmember Weitkunat made a motion, seconded by Councilmember Bertschy, to uphold the decision of the Planning and Zoning Board regarding the Provincetowne PUD Filing 2, Preliminary based on the record and relevant provisions of the Code and Charter. Em October 5, 1999 Councilmember Kastein spoke regarding the concerns of the neighborhoods in the area and noted that the issue before Council is a determination regarding the appeal rather than those neighborhood concerns. Mayor Martinez expressed concerns regarding whether the hearing was 100% fair and noted that he had voted in opposition to some of the above motions. The vote on the motion was as follows: Yeas: Councilmembers Bertschy, Byrne, Kastein, Mason, and Weitkunat. Nays: Mayor Martinez. THE MOTION CARRIED Public Hearing on the 2000 and 2001 Recommended Biennial Budget, Held The following is staff's memorandum on this item. "Executive Summary This is the second official Public Hearing on the City Manager's 2000 and 2001 Recommended Biennial Budget for the City of Fort Collins. A first Public Hearing was held on September 21, 1999." Father Douglas Hunt, Holy Family Catholic Church, spoke regarding the need for assistance for non-English speaking persons at the library. Edward Jakubauskas, 801 Warren Landing, Library Board Chair, spoke in support of funding for technology and diversity at the library. Betty Maloney, 1309 City Park Avenue, spoke in support of funding for land banking for affordable housing and also for library and museum support. Larry Webber, 139 Pearl, Chairman of Friends of the Library, expressed support for library funding for staffing and materials. Myme Watrous, 324 North Roosevelt Avenue, President of the Fort Collins Historical Society, expressed the support of the Historical Society for funding for the museum. Corrine Govan, 1304 Shamrock, representing Art's Alive Board of Directors, spoke in support of funding for Art's Alive. En October 5. 1999 Ayleen Burns, 1113 Oak Leaf Court, Cultural Resources Board member, expressed support for museum funding. Mary Crow, no address given, State of Colorado poet laureate, spoke in support of funding for Art's Alive. Gaston Leone, no address given, Harris Bilingual student, spoke in support of library funding. Jeff Eighmy, 737 Dennison Avenue, Utility Board member, spoke in support of the continued use of renewable energy such as wind power. Judy McDonald, Poudre School District Library Director, spoke in support of library Randy Fischer, 3007 Moore Lane, Natural Resources Advisory Board Chair, spoke in support of inclusion of funding for increasing solid waste diversion rates, adequate code enforcement for LDGS environmental conditions placed on development, air quality programs, community separator plan, and water quality monitoring. Nancy Banks, Coordinator of LINC Summer Reading Program, supported library funding. Martha Rhoden, no address given, spoke regarding funding for a recycling center and for the community separator program. Phil Friedman, 201 South Grant Avenue, former Natural Resources Advisory Board member, spoke in support of funding for an air quality monitoring station, baseline water quality monitoring, and a recycling center and centralized drop-off. Karen Warren, 1504 West Mountain, spoke in support of funding for Art's Alive and stated that approximately 50 people were involved in a walk to City Hall demonstrating support for the arts. Gina Janett, 730 West Oak, spoke regarding a need for additional funds for an air quality monitoring station and the community separator project. Sally Craig, 1409 South Summitview, Planning and Zoning Board member, spoke in support of funding for air and water quality monitoring, central recycling, and the community separator Glen Colton, 625 Hinsdale Drive, Planning and Zoning Board member, spoke in support of funding for the community separator project and Code enforcement. Jeffrey Battle, Executive Director of the Humane Society, spoke regarding increased operating costs for the Humane Society and requested an increase in funding for the year 2000 to $257,000. 10 October S, 1999 Pam Stevens, 2828 Silverplume Drive, spoke in support of funding for a recycling center. David Lauer, 1404 Robertson, Water Board member, spoke in support of funding for Code enforcement and the community separator project. Kelly Ohlson, 2040 Bennington Circle, spoke regarding the budget process and the scheduling of the budget hearing after a land use appeal. He supported funding for air and water quality monitoring, recycling, the community separator project, and code enforcement. Nancy York, 130 South Whitcomb, Air Quality Advisory Board member, spoke in support of funding for recycling and an air quality monitoring station. John Meleski, 2619 Featherstar Way, spoke in support of library funding and urged Council to consider a board to look at the details of the budget. Alan Apt, 1406 Freedom Lane, spoke in support of funding to address environmental concerns such as air quality and recycling. Rudy Maes, 1601 North College Avenue #134, Library Board member, supported library funding. Councilmember Bertschy requested additional information regarding the community separator project and the Humane Society. Councilmember Mason asked for an estimate regarding the cost of water quality monitoring and summary of Art's Alive commitment. City Manager stated that Council and public input will be reviewed and options and implications will be considered prior to the Study Session discussion on the budget. Councilmember Weitkunat requested a cost estimate for relocating the existing air quality monitoring station. Councilmember Byrne stated that he would introduce discussion regarding transportation funding strategy at the Study Session. Councilmember Mason requested a one -page summary regarding the discussions of the previous Council regarding commitments for the Art's Alive program. 483 October 5, 1999 Ordinances Relating to the Issuance of City of Fort Collins Downtown Development Authority Subordinate Tax Increment Revenue Bonds Series 1999 Adopted on First Reading The following is staff s memoradum on this item. "Financial Impact At the end of 1998, the Downtown Development Authority Debt Service Fund held $630, 000 of unreserved fund balance. By the end of 1999, the unreserved fund balance is projected to grow to approximately $900,000. The DDA Board and the staff recommend using a portion of the unreserved fund balance to make capital improvements in the downtown area consistent with the mission of the Authority. Over the ensuing years, the projects receiving the benefit through the capital improvements will repay the value of the projects through increased tax increment. The DDA debt service fund has sufficient revenue to meet all required debt service payments and reserve requirements for 1999 through 2006 Executive Summary A. First Reading of Ordinance No. 150, 1999, Authorizing the Issuance of City ofFort Collins Downtown Development Authority Taxable Subordinate Tax Increment Revenue Bonds Series 1999 in the Amount of $750,000 for the Purpose of Financing Certain Capital Improvements and Capital Projects. B. First Reading of Ordinance No. 151, 1999, Appropriating Proceeds from the Issuance of City ofFort Collins, Colorado, Downtown DevelopmentAuthority Taxable Subordinate Tax Increment Revenue Bonds, Series 1999, for the Purpose of Making Certain Capital Improvements in the Downtown Area ofFort Collins and Appropriating Revenues in the Tax Increment Fund. The City of Fort Collins created the Downtown Development Authority to make desired improvements in the downtown area. Through tax increment financing, the DDA has made significant contributions to the redevelopment and improvement ofthe downtown area. These two Ordinances provide funding fom unreserved fund balance in the DDA Debt Service Fund to make additional improvements in the downtown area. The first Ordinance issues short term bonds for the projects which will be paid from the tax increment revenue The second Ordinance appropriates the proceeds in to the Capital Projects Fund for the various projects. The projects include the Northern Hotel ($331, 000), 185 North College ($105, 600), 107-115 South College ($84, 000), City Drug ($67,000), 328Remington ($50,000),345East Mountain ($40,000), 251 Linden ($20,000), and 231 South Howes Street ($18,500). The total of the eight projects is 484 October 5, 1999 $716, 000. All of these projects have been reviewed and recommended by the Board of Directors of the DDA. Two other projects have been reviewed and recommended by the DDA Board. They include the Armstrong Hotel ($240, 000) and the 401 West Mountain Trolley Station ($170, 800). There is not sufficient tax increment in 1999 to cover the cost of these two projects. These projects are planned to be funded from a future borrowing. The Transportation Services Area has also requested that the DDA participate financially in the Repair and Maintenance of the Remington Parking Structure. BACKGROUND For background, staff has provided the summaryfor each project that was reviewed and approved by the Board of Directors of the DDA. 1. Northern Hotel EXECUTIVE SUMMARY The Downtown Development Authority is excited to have the opportunity to participate in the redevelopment of the Northern Hotel. As a long-standing icon in Fort Collins, the Northern Hotel offers a glimpse of a bygone era as well as a great opportunity to revive a building, which is highly visible to anyone visiting the city. The DDA has committed $331, 000 to this renovation project, with City Council approval. The project will generate enough tax increment to support this participation through the combination of housing and commercial retail scheduled as part of the project. The DDA will be acquiring an easement on the faVade as the public benefit. BACKGROUND INFORMATION The Northern Hotel, once the gem of Northern Colorado, has seen many different faces throughout the years. In addition to its many faces, the Northern has endured its share of problems. Most recently, afire in the '70's placed this historic structure in a 'condemned'state, banning use on the upper floors. This project will rehabilitate these floors, enabling them to be used for the first time in almost 25 years. Over time, the Northern has seen many attempts at renovation. However, due to the nature of the buildings historic fabric and current condition, renovation was both difficult and expensive. Staff believes the timing of this proposal to bring this structure back to life is opportune. 485 October S, 1999 Conformance with DDA and Community Goals Obiectives rules and regulations The redevelopment of the Northern Hotel helps to fulfill many significant long-range planning and development goals of Fort Collins, specifically downtown. City Plan From City Plan, Policy DD-1.2, After-HourActivities: Uses that expand the range ofactivities such as entertainment facilities and residential uses will be encouraged. The Northern Hotel project offers additional housing in the downtown. From City Plan, PrincipleD-4: Historically and architecturally signifcantbuildings inDowntown will be preserved and enhanced. The Northern Hotel project is both historically and architecturally significant. Land Use Code The redevelopment of the Northern Hotel conforms to Article 3, Division 3.4, Subdivisions 3.4.7 of the Fort Collins Land Use Code requiring that a local historic structure and/or a structure that is eligible for listing on the National Register of Historic Places provide a development plan and building design for the preservation and adaptive use of the historic resource. The Northern Hotel project conforms to the above -mentioned regulation. Downtown Plan From the Downtown Plan, Policy 9—Historic Resources: Preserve and enhance the historic and architectural values of Downtown... Preserve the historic character of Downtown... Respect and be sensitive to the historic and architectural character of Downtown... Encourage the redevelopment and adaptive reuse ofhistorically significant and architecturally important structures... Promote the designation of eligible structures and districts as local, state and national landmarks. Redevelopment of the Northern Hotel clearly meets all of these goals. Bri October 5, 1999 FINANCING The DDA is one ofmany financial elements in this project. As stated in the Executive Summary, the DDA committed $331, 000. Tax increment financing is the selected method to retire the debt. Although the calculations for housing and commercial tax increment are different, the tax increment from the property will support the DDA commitment. Additionally, any excess property tax increment would go to the City, via the DDA. 2. 185 North College Avenue EXECUTIVE SUMMARY The redevelopment of the property at the southwest corner of the intersection of LaPorte and College Avenues brings to one of the most important gateways in downtown an attractive two-story brick structure, which will house a restaurant, retail and office space. This corner lot was once a gas station and an auto repair shop. The project being built fulfills all the objectives spelled out in the three pages of the Downtown Plan devoted to the site as well as City Plan standards for infill and mixed use developments. BACKGROUND INFORMATION The southwest corner of LaPorte and College was targeted by the Downtown Plan which devotes three pages to the site. The Plan states "The site is located on one of the most important blocks in the retail district of the Downtown area... the City has the opportunity to have a positive influence on the future of the entire block through the appropriate disposition of the LaPorte property. " The Downtown Plan was written in the late 1980's long before the redevelopment of Blocks 31 and 32 to the west. The intersection's importance has only increased in the intervening decade. The project being built on the site is a two-story office, retail and restaurant structure that directly and intentionally picks upon many of the historic architectural themes of downtown Fort Collins. The design is clearly in line with City Plan in scope, massing, materials, spacing of architectural elements, and pedestrian orientation. Although a few on -site parking spaces will be provided, the project intends to take advantage of the new parking structure being built directly to the west. The Downtown Development Authority considered participation in this project in June 1999 and agreed to acquire an easement on the fagade, assuming it was built as design illustrations indicated, for $105, 600. The easement is for a 20 year period and requires all maintenance to be conducted and paid for by the property owner. E-M October 5, 1999 The Authority's agreement to participate was predicated on the following: The importance ofthe intersection and the long-standing need to have a quality improvementplaced on the site: • The creative andsensitive design ofthe structure towardthe historic downtown environment and to pedestrians. The DDA noted the function the site has in connecting Old Town Fort Collins and the new civic center facilities to the west of the property; • The conformance of the design to every criteria of the Downtown Plan and to City Plan; • The actual cost to build the faVade estimated at $158,500; • The owner's willingness to bid and manage the construction of General Improvement District improvements which are occurring simultaneously with the development of the building itself. • The opportunity to leverage a high -quality project directly across the street from the proposed renovation of the Northern Hotel which effectively redevelops 50 percent of the entire intersection. FINANCING The new structure at 185 North College Avenue will have a value of between $990, 000 and $1.2 million according to estimates provided by the Larimer County Assessor's office. Using the more conservative number, this will generate property taxes of $27, 500 (based upon current mill levies) which, after subtracting current tax liability of $1,917 leaves an incremental value of $25,600. Through mid 2006, the project should pay about $140, 000 in tax increment and if the annual level of $25, 600 is not reached (regardless of the reason) the owner of the property is obligated to make up any shortfall. The City, through the DDA, would retain any excess. The DDA's $105, 600 easement acquisition constitutes between 8.8 and 10.6 percent of the project's completed value which is consistent with the level ofAuthorityparticipation in almost every project it has ever been involved with (the major exception being Old Town Square). Because this project is being included with a series of other DDA projects, the issuance and borrowing costs for this (and all) the projects is considerably less than what they would be as stand- alone projects. Cost estimate: The following numbers were provided by the owner of the project: Earthwork 25,000 Foundation 12,500 Structural Steel 22,000 Framing 50,000 Cfr3 October 5, 1999 Insulation 5,000 Stucco 20,000 Doors 7,000 Windows 31,000 Hardware 4,500 Drywall 18,000 Painting 1,500 Awnings 11,000 Signage 7,000 Light Fixtures 2,500 Flood Doors 2, 000 General Conditions 10,000 Contractor profit/overhead 22,000 Total: $251, 000 From these figures, the DDA subtracted earthwork, foundation, insulation, drywall, general conditions, and contractor profit and overhead (total of $92,500). In some cases the improvement cost should legitimately be borne by the whole project (e.g. earthwork, foundation, general conditions, profit and overhead) while in others, the "benefit" was clearly to the interior of the building (drywall, and insulation). Nevertheless, the resulting $158, 500 hard cost ofimprovements exceeds the cost of the easement acquisition by better than 50 percent. 3. "Robert Trimble Block" Building (107-115 South College Avenue) EXECUTIVE SUMMARY The building known as theRobert Trimble Block Building is one which carries a tremendous amount of history for Fort Collins, as well as currently housing the Catacombs Restaurant. This historic building, located next to City Drug is located just off the main corner of the busiest intersection in downtown Fort Collins. The developer of the project is The Kaplan Company. The total private investment of the renovation is estimated at $666,948, of which, $107,537 will restore the fagade of the building. Tax increment revenue from this project will exceed $100,000, while the DDA has committed $84,000. BACKGROUND INFORMATION The Robert Trimble Block has contained a variety of commercial enterprises for nearly a century, from ca. 1900 to the present. It is named for its original owner, Robert E. Trimble, a prominent Fort Collins businessman and son of early Fort Collins merchant and stockman William H. Trimble. Its first occupant was Tyler -Lowe Mercantile Company,fromca. 1902-1910. The historic building also was the home to The Boston Store, the Vance Shoe Store and Pate Stores Co., Collins Cash Clothing Company, Pggly Wiggly, Hibbs Clothing Co., a dry goods store as well as a jeweler. In 1960 this n3j, October 5, 1999 location was then replaced by retail chain store, Ben Franklin, which operated for a decade. Team Electronics, The Catacombs, Bays Pets and Things, and Walrus Ice Cream have also been located in this building. In August 1998 the building came under the ownership oflmage Enterprises, Inc. This building renovation is consistent with many of the City and DDA's goals, as outlined in the following document references: Ci1y Plan: PrincipleD-4: Historically and architecturally significant buildings in Downtown will bepreserved and enhanced. Downtown Plan: Policy 9—Historic Resources: Preserve and enhance the historic and architectural values of Downtown... Preserve the historic character ofDowntown ... Respectandbe sensitive to the historic and architectural character of Downtown... Encourage the redevelopment and adaptive reuse of historically significant and architecturally important structures. Redevelopment of the Robert Trimble Block clearly meets all of these elements. FINANCING The redevelopment ofthe Robert Trimble Block will cost approximately $666,948. This incremental increase to the property value ofthe building will generate over $100, 000 in the next 5 % years. The DDA has committed $84, 000 to this project. As with all DDA projects, if the tax increment fails to reach the specified levels, the owners will be contractually obligated to makeup any shortfalls. This guarantees that the debt incurred to acquire the facade easement will be covered. Any excess increment flows to the City through the DDA. Attachments to this memorandum include elevations of the building, site plan, facade cost estimate and the easement and maintenance agreements. 4. City Drug Building (101-103 South College Avenue) EXECUTIVE SUMMARY The City Drug Building has long been a cornerstone of downtown Fort Collins. This historic building is currently undergoing an extensive remodel of the facade and the second floor. The developer of the project is The Kaplan Company. The total private investment of the renovation is estimated at $559,280.75. The DDA commitment of$67, 000 is contingent on City Council approval as well as work being completed as presented. As proposed, this finished project would generate over $70,000 in tax increment money, which would be used to retire the debt. M October 5, 1999 BACKGROUND INFORMATION The City Drug Building is comprised of two adjoining buildings, which were separate entities until ca. 1937. The southernmostportion ofthe building, occupyingLot 15, was constructed before 1886. The building (105 South College Ave) was divided longitudinally. In 1886, it was occupied by a tailor and a tobacco shop. By 1891, the tobacco shop was gone and in its place was an insurance office, and by late 1895 a millenary shop had replaced the insurance office. This building then was the home to a grocery and hardware shop, bookstore, pharmacy, bank, and finally in 1968 City Drug rested in this location. The building and renovation, located at the 100% (busiest) intersection of downtown, offer many of the elements outlined in the Downtown Plan drafted in 1989. Downtown Plan: Policy 9—Historic Resources: Preserve and enhance the historic and architectural value of Downtown... Protect historically significant and architectural important structures, sites and districts. City Plan: Policy DD-1.1, Land Use: Basic Land use activities will be clustered... to promote the movement of pedestrians... while preserving the historical buildings and character of the area... The CityDrugproject certainly accomplishes the above -mentioned elements oftheDowntown Plan. The Downtown Development Authority considered participation in this project in May 1999 and agreed to acquire an easement on the faVade, assuming it was built as design illustrations indicated, for $67, 000. The easement requires all maintenance to be conducted and paid for by the property owner. The Authority's agreement to participate was predicated on the following: • The importance of this structure to downtown Fort Collins; • The actual cost of renovation on the faVade estimated at $73, 672.94; • The owner's willingness to comply with all City rules and regulations regarding the renovation, including food proofing this building. FINANCING This project will have an improved value estimated at $559,000 in taxable improvements. The tax increment generated from this project will supply more money than the debt. In the unlikely event 491 October 5, 1999 the property value does not support the annual increment, the contract requires the property owner to pay this amount. Any excess in this amount flows to the City through the DDA. Because this project is being included with a series of other DDA projects, the issuance and borrowing costs for this (and all) the projects are considerably less than what they would be as stand alone projects. 5. 328 Remington (Old Baptist Church) EXECUTIVE SUMMARY The 'Old' Baptist Church located at 328 Remington is in the final planning stages of a change of use and renovation of the existing structure. Currently used as a dwelling unit in approximately 10% of the usable space, this beautiful structure is slated as a film and dance school in the near future. Currentlyplanned is a $350, 000 improvement to the property, and the DDA has committed $50, 000 to this project, pending City Council approval. Tax increment for the project is estimated at approximately $10, 000 annually, which would be used to fund the DDA portion of the project. Earlier in the planning process, the DDA requested the annexation of this property into the DDA boundary. This request was supported and passed by City Council in September 1998. BACKGROUND INFORMATION Originally constructed in 1897, this historic church structure will receive a facelift, internally and externally. A f lm and dance school is the anticipated user of the facility, offering a new dimension to the already culturally rich Fort Collins, and downtown. While this project will offer many things to our community, additional jobs and educational services are at the top of the list. This project offers many different elements of adaptive reuse of a historic structure. Conformance with DDA and Community Goals. Objectives rules and regulations The redevelopment of the Baptist Church accomplishes many of the significant goals of our community through the following document references: S9A October 5, 1999 City Plan From City Plan, Principle D-4: Historically and architecturally significant buildings in Downtown will be preserved and enhanced. Land Use Code The redevelopment of the Baptist Church conforms to Article 3, Division 3.4, Subdivisions 3.4.7 of the Fort Collins Land Use Code requiring that a local historic structure and/or a structure that is eligible for listing on the National Register of Historic Place provide a development plan and building design for the preservation and adaptive use of the historic resource. Downtown Plan From the Downtown Plan, Policy 9—Historic Resources: Preserve and enhance the historic and architectural values of Downtown... Preserve the historic character of Downtown... Respect and be sensitive to the historic and architectural character of Downtown... Encourage the redevelopment and adaptive reuse ofhistorically significant and architecturally important structures... Promote the designation of eligible structures and districts as local, state and national landmarks. FINANCING The DDA has committed $50, 000 in reimbursable funds toward this redevelopment project. The tax increment from theproperty will be used to retire the debt ofthis commitment. The total anticipated investment exceeds $350, 000 in taxable improvements. This private investment will provide ample funds for repayment of the debt. As with all DDA projects, excess revenue flows to the City through the DDA. 6. 345 East Mountain Avenue EXECUTIVE SUMMARY The project located at 345 East Mountain Avenue, also known as the old Salvation Army building, has undergone an entire renovation. The building owner, LPJLimited Partnership Association, is the developer. As Mountain Avenue begins to extend east past Walnut Street, this renovated property has become a tremendous addition to the block. Total private investment for the project is over $375, 000, and the DDA has committed $40, 000. Tax increment revenue for the project is estimated to be approximately $15,680 per year beginning in 2000. This increment will total approximately $94, 000 between 2000 and 2006 when the current DDA expires, and these revenues would be used to fund the project. BACKGROUND INFORMATION 493 October 5, 1999 The structure located at 345 East Mountain Avenue was built in 1901 as a private residence. The only remaining evidence ofthis residence uncovered to date is an interior brick wall of the current building. This residence was apparently converted to a business ca. 1958. According to Building Department Records, in January 1969 the owner remodeled, and many businesses have been located at the site. Past tenants include Michaud Electric, Milar Electric, Salvation Army, along with the current tenant, Balloffet and Associates. This last change triggered a shift from retail to office use for the building. FINANCING According to the Larimer County Assessor, this property is estimated to increase in value $558, 000 based on renovation and higher rental income generated by the new tenants. The taxable improvement will provide approximately $15, 680/year, which will be used to retire the debt for this project. As with all DDA projects, the excess funds from this property will flow to the City through the DDA. 7. 251 Linden Street EXECUTIVE SUMMARY The Downtown Development Authority is scheduled to participate in the historic renovation of the building known as 251 Linden Street. The DDA has committed a total of $20,000 to the project, which is estimating a total renovation cost of $296, 600. This building is one of the few structures on Linden Street which has not been remodeled. The anticipated tax increment from this project will be used to retire the debt. BACKGROUND INFORMATION This property is one of downtown's last un-restored and neglected historic properties with the building in critical need ofcare and restoration. Abandoned in 1974 after the last tenant, Summers Auto, moved to a new location, the property began a consistent aesthetic and structural decline. The property was built in 1883 and is listed in the Local and National Register Historic District. A photo from early 1900's shows "Plattner Implement Company" occupying the storefront with retail farm implements. The first entry appearing in the Fort Collins City Directory shows "P.P. Tubbs — Hay, Feed and Coal" as occupants in 1902. The restoration of the interior and exterior will be performed in compliance with the Secretary of the Interior's Standards for Archaeology and Historic Preservation. Existing interior Victorian fabric will be saved and restored. The twin staircase will be restored and the skylight reopened. 494 October 5, 1999 This property has great significance to the community in many ways. It also accomplishes many of the goals outlined as follows: City Plan Principle D-4: Historically and architecturally significant buildings in Downtown will be preserved and enhanced. Downtown Plan Policy 9—Historic Resources : Preserve and enhance the historic and architectural values of Downtown... Preserve the historic character ofDowntown ... Respect and be sensitive to the historic and architectural character of Downtown... Encourage the redevelopment and adaptive reuse of historically significant and architecturally important structures. FINANCING The repayment ofthe debt created for this project will be issued through the tax increment generated in the restoration process. It is projected that the property will produce approximately $8,317/year in tax increment. Extending this amount over the anticipated 4.5 years, the total of $37,430 in collected in tax increment revenue. As will all DDA projects, excess revenue flows to the City of Fort Collins, through the DDA. 8. 231 South Howes EXECUTIVE SUMMARY The property located at 231 South Howes is scheduled for renovation from a two-story residence to offices. The existing structure is a designated historic landmark, which means any faFade work must be with the approval of the Landmark Preservation Commission (LPQ. A total of $250,000 in taxable improvements is estimated for the property. The project would be funded through tax increment financing, and include improvements to the right-of-way. The DDA commitment to this project is $18,500. 495 October 5, 1999 BACKGROUND INFORMATION The current owner purchased the residence of the late Adelia Davis, located at 231 South Howes This building is located across from the Federal Post Office at the intersection of Olive and Howes. The main building was constructed in 1903 and remodeled in 1942 into a duplex. There has been little done to the house since that time. The project will include all new plumbing, heating and air conditioning and electrical work, as well as the reinstallation of the original staircase, which was removed to create the upper apartment. As part of the historical fabric of downtown Fort Collins, this renovation adds commercial space as well as a residential unit to the downtown. Complete with the re -location ofa fifty -year -old prize winning rose garden relocation, and the addition ofa carriage house, this project is a fine example of retaining the turn of the century flavor of this house, while providing an attractive mix of residential and commercial use. FINANCING This project will be financed through tax -increment funding in the amount of $18,500, with City Council approval. This debt will be self -supported by the private investment of approximately $250, 000 to the project. As with all DDA projects, any excess tax increment revenue goes to the City of Fort Collins through the DDA. Future Projects 1. Armstrong Hotel EXECUTIVE SUMMARY Contingent upon approval by City Council, the Downtown Development Authority has agreed to acquire a fagade easement on the Armstrong Hotel (aka Empire Hotel) following the building's historic rehabilitation into a 58-room hotel and restaurant. The developer oftheproject is a team composed of Everitt Enterprises and Sitzman-Mitchell. The $240, 000 DDA commitment is also contingent upon a $6,000,000 renovation cost which should generate $2.3 million in taxable improvements, and an annual tax increment of $64, 000. BACKGROUND INFORMATION The Armstrong Hotel was built in 1923 in response to the growing automobile tourism business. It once housed the original Fort Collins chapter of the American Automobile Association. The building is a locally designated historic landmark and it is eligible, and has been nominated for National historic designation. It has been submitted to the Landmark Preservation Commission for design review and approval. I October 5, 1999 The redevelopment of the Armstrong Hotel complies strongly and directly with the tenets of City Plan and the Fort Collins Downtown Plan. City Plan Policy DD-1.1, Land Use: Basic land use activities will be clustered... to promote the movement of pedestrians... while preserving the historical buildings and character of the area The Armstrong Hotel is a local designated historic structure and is in the process of obtaining formal national designation. PolicyDD-1.Z After-HourActivities: Uses that expand the range ofactivities such as entertainment ... , restaurants, hotel/convention facilities and residential uses will be encouraged The Armstrong Hotel will return a full -service hotel to the central business district and will include a new, locally owned and operated restaurant and bar. Policy DD-1. 7, Hotels: A high quality hotel(s) with space for large gatherings, conventions, etc., is encouraged in the Old City Center sub -district. The Armstrong Hotel will have a variety of meeting rooms, the largest of which will seat more than 100 people. Principle D-4: Historically and architecturally significant buildings in Downtown will be preserved and enhanced. The historic Armstrong Hotel will be preserved and enhanced. Policy DD-5.4 Parking. Shared parking allowances will be encouraged for nearby uses... The Armstrong Hotel has a limited amount of on -site parking which is located at the rear of the building (which conforms to City Plan Policy DD-5.5 requiring lots to be located behind buildings, inside yards, or in the interior of blocks). The balance of the parking will be provided through the use of shared facilities. These arrangements are currently being negotiated with the owners of close -by surface parking lots. 497 October 5, 1999 Land Use Code The redevelopment ofthe Armstrong Hotel conforms to Article 3, Division 3.4, Subdivision 3.4.7 of the Fort Collins Land Use Code requiring that a local historic structure and/or a structure that is eligible for listing on the National Register of Historic Places provide a development plan and building design for the preservation and adaptive use of the historic resource. Downtown Plan Downtown Plan, Policy 9—Historic Resources: Preserve and enhance the historic and architectural values of Downtown... Preserve the historic character of Downtown... Respect and be sensitive to the historic and architectural character ofDowntown ... Encouragethe redevelopment and adaptive reuse ofhistorically significant and architecturally important structures... Promote the designation of eligible structures and districts as local, state and national landmarks. Redevelopment ofthe Armstrong Hotel clearly meets all ofthe elements ofPolicy 9 ofthe Downtown Plan. Downtown Plan, Policy 15—Economic Development: Build the Downtown as the economic heart of the community and region... Foster the development of newjobs in the Downtown... Support the retention and expansion of existing businesses... Enhance the Downtown's dominance in finance, government, professional services, culture and entertainment. Redevelopment ofthe Armstrong Hotel helps tofuytll these economic development objectives. Most specifically, it will complement the meager visitor housing options in the central business district and enhance the attraction of outside dollars into this community. Downtown Plan, Policy 15, Page 110: Utilizepublic incentives for the location ofa quality hotel(s) nowhere else in the community but downtown. The Downtown Plan also includes a specific recommendation in Chapter 5 (p. 116) which states: "Establish a program to recruit major anchors to the Downtown area ... A number of potential anchors have been identified... Quality hotel(s) ... eating and drinking establishments ... conference centers." The redevelopment of the Armstrong Hotel will help to fulfill this recommendation. Plano Development The original planning document, Fort Collins Downtown Development Authority Plan of Development, adopted as a part of the creation process for the DDA in 1981 includes specific references to historic preservation. Three listed goals and objectives (G, H, J, and R, pg. 6 and 7) M October 5, 1999 all encourage support of restoration and rehabilitation with the intent of preventing physical deterioration and expanding the mix of uses offered in the central business district. Finally, the Plan of Development includes a hotel and convention center as a project the DDA should pursue. While the proposed redevelopment of the Armstrong Hotel will result primarily in a boutique style hotel, it clearly moves in the direction of this long time DDA project objective. For every citation above, because every public planning and policy document strongly encourages, endorses, this kind of project, the Downtown Development Authority agreed to participate in the rehabilitation of the Armstrong Hotel. The project fulfills a critical gap in the downtown commercial fabric, it restores a simple but large historic Fort Collins landmark, it will creatively take advantage of existing parking opportunities and because the use is unchanged, automobile demand should not increase. Indeed, adding more hotel rooms to the downtown inventory provides visitors with a more convenient, one -stop sleeping, entertainment, and eating environment. DDA participation is retroactive --the project must be completed before the favade easement is acquired. This insures the flow of tax increment monies to fund the Authority's involvement. FINANCING The rehabilitated Armstrong Hotel will cost about $6,000,000. However, the owners, with the assistance of the Larimer County Assessor's office, have been extremely conservative in their estimation of added "incremental" value, which they have placed at $2,300,000. This should generate $64,000 annually in property tax increment (using current mill levies) and will generate $288, 000 over a 4.5 year period (assuming taxes on the added value do not begin flowing before 2002). This is sufficient to cover the easement acquisition cost of $240, 000. Since this project is a part of a number of DDA projects, borrowing and bond issuance costs will be reduced significantly. As with all DDA projects, should the tax increment fail to reach the specified levels, the owners will be contractually obligated to makeup any shortfalls. This guarantees that the debt incurred to acquire the faVade easement will be covered. Any excess increment flows to the City through the DDA. 2. 401 West Mountain (Trolley Station) EXECUTIVE SUMMARY The DDA has committed $170,800 toward the redevelopment of the property known as 401 West Mountain. This project will be a mixed -use building with a total build -out cost estimated at $1,782,800. Of this total, $1,496,000 is hard net costs, with the balance made up in off -site improvements andprojectfees. Tax incrementfinancingisthefundingmechanism selected byDDA to fund this redevelopment. The project will generate approximately $40, 000 in annual property tax. Tax increment onthepropertywillproduce$36,000/annually,thusanyexcessincrementwould flow to the City of Fort Collins through the DDA. 499 October 5, 1999 The DDA's participation in this project is through the funding of the public right-of-way. BACKGROUND INFORMATION This location, situated across from the Edward's House Bed andBreakfast, and cross -cornered from the Avery House, is a formergas station. Prior to its immediate past use, the site served as a Trolley Station. The property has existed as a run down, non -operative gas station for the past several years. In viewing this project with the DDA's mission in mind, this is a textbook downtown project. It will result in some low -intensity neighborhood retail, an increase in the availability of professional services downtown, and it includes market -rate urban housing. The design is contemporary but not intrusive. It is the kind ofproject that incorporates the diversity and functionality, which makes Fort Collins unique. This project continues many of the goals of the DDA as well as the community, as referenced by: Downtown Plan, Policy 15 Economic Development: Build the Downtown as the economic heart of the community and region... Foster the development ofnew jobs in the Downtown... Support the retention and expansion of existing businesses... Enhance the Downtown's dominance in finance, government, professional services, culture and entertainment. FINANCING This property calls for an investment of $1,782,800, with taxable improvements in the amount of $1,496, 000. The debt incurred by the DDA will be retired through tax increment financing, with City Council approval. As with all DDA projects, any excess funds from the project flow to the City through the DDA. SUMMARY The DDA Board has met to review each of these projects. For the reasons in the summaries, the Board has recommended each project for funding through a transfer ofthe tax increment. In 1999, the DDA tax increment is sufficient to cover the cost of the first eight projects. Staff will be developing a financial proposal for the other projects at the beginning of 2000. Staff recommends adoption of the ordinances. " Kelly Ohlson, 2040 Bennington Circle, expressed concerns regarding the DDA project, opposed the use of public monies for projects with unclear public benefit, and urged more Council scrutiny of DDA activities. City Manager Fischbach spoke in general regarding DDA projects. 61III] October S, 1999 Jay Hardy, Downtown Development Authority Executive Director, spoke regarding the process and criteria followed for DDA facade renovation projects and tax increment financing. Lucia Liley, 110 East Oak Street, attorney representing the Downtown Development Authority, spoke regarding the statutory duties of the DDA and provisions regarding the spending of tax increment or other public monies for public improvements or acquisition of property or a limited interest in property for downtown renovation purposes. She spoke regarding the review and approval process for facade projects done for renovation purposes. Councilmember Mason asked ifthe DDA publishes any itemized reports of expenditures forprojects that could be reviewed by the public or the Council. Hardy stated that the DDA is a quasi - governmental entity and its detailed project files are open to public inspection. City Manager Fischbach stated that the DDA is also audited by the City's auditor. Councilmember Weitkunat asked for clarification that the DDA is accountable to the City and that checks and balances are in place. City Manager Fischbach stated that DDA finances must be approved by the City Council. Councilmember Byrne spoke regarding the oversight responsibilities of the Council and the need for comprehensive strategic overview. He suggested the preparation of a strategic business plan for the DDA for presentation to the Council. Councilmember Bertschy spoke in support of the facade renovation program and suggested that appropriations for large sums of money not be placed on the Consent Calendar. He supported the suggestion for a business plan for the DDA. Councilmember Bertschy made a motion, seconded by Councilmember Weitkunat, to adopt Ordinance No. 150, 1999 on First Reading. Councilmember Mason supported the preparation of a business plan for the DDA and facade renovation for public benefit using public monies. He spoke regarding the professional audit done for the DDA. He supported placing large appropriations on the discussion agenda rather than on the Consent Calendar. Councilmember Kastein noted that there is a Council liaison to the DDA. He requested information regarding the proper uses of DDA monies. The vote on the motion was as follows: Yeas: Councilmembers Bertschy, Byrne, Kastein, Martinez, Mason, and Weitkunat. Nays: None. THE MOTION CARRIED 501 October 5, 1999 Councilmember Bertschy made a motion, seconded by Councilmember Weitkunat, to adopt Ordinance No. 151, 1999 on First Reading. Kelly Ohlson, 2040 Bennington Circle, spoke regarding facade renovations and stated that the issue is whether or not the public benefit is equal to the expenditure of dollars. Councilmember Bertschy spoke regarding the public outcome of facade projects and competitive bid processes. Councilmember Mason asked if there is a balance sheet available to itemize expenditures for such projects. Alan Krcmarik, Finance Director, spoke regarding auditing procedures for DDA projects. City Manager Fischbach spoke regarding staff diligence in ensuring accountability for the expenditure of public dollars. Councilmember Mason spoke regarding the need for Council to ask the questions taxpayers expect. The vote on the motion was as follows: Yeas: Councilmembers Bertschy, Byrne, Kastein, Martinez, Mason, and Weitkunat. Nays: None. THE MOTION CARRIED Other Business Mayor Martinez spoke regarding the resignation of Carl Cooper from the Liquor Licensing Authority in response to the limited sanctions imposed by the LLA for a liquor licensing violation. He expressed concern regarding the light sanctions that were imposed in this case and suggested looking at options for dealing with liquor licensing violations. Councilmember Bertschy supported looking at options for dealing with liquor licensing violations. Councilmember Kastein also supported looking at options in this area. Councilmember Byme suggested that the Council Health and Safety Committee could review the performance of the Liquor Licensing Authority. Mayor Martinez stated that he would talk with Mr. Cooper to ask him to reconsider his resignation. i.X October 5, 1999 Councilmember Weitkunat spoke regarding the need to provide direction to boards and commissions and the responsibility of the Council to review the boards to determine how all of them fit within the policy and direction of the community. She commented on the seriousness of the LLA situation. Councilmember Mason requested a one -page summary of this particular situation. Councilmember Kastein asked about the status of a memo summarizing the meeting held with the development community. City Manager Fischbach stated that the memo will be included in the next Council packet. Mayor Martinez spoke regarding the Beattie Elementary School pedestrian safety issues. City Manager Fischbach spoke regarding the shortage of crossing guards. Adjournment The meeting adjourned at 10:35 p.m. %' Mayor ATTEST: �i/I City Clerk - G� 503