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HomeMy WebLinkAboutMINUTES-07/27/1999-AdjournedJuly 27, 1999 COUNCIL OF THE CITY OF FORT COLLINS, COLORADO Council -Manager Form of Government Adjourned Meeting - 6:00 p.m. An adjourned meeting ofthe Council ofthe City ofFort Collins was held on Tuesday, July 27, 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: Byrne, Kastein, Martinez, Mason, Warmer and Weitkunat. Councilmembers Absent: Bertschy. Staff Members Present: Fischbach, Krajicek, Roy. Executive Session Authorized Councilmember Wanner made a motion, seconded by Councilmember Weitkunat, to adjourn into Executive Session to discuss legal matters and land acquisition. The vote on the motion was as follows: Yeas: Councilmembers Byrne, Kastein, Martinez, Mason, Wanner and Weitkunat. Nays: None. THE MOTION CARRIED. ("Secretary's Note: The meeting adjourned into Executive Session at 6:05 p.m. and reconvened following the Executive Session at 6:50 p.m.) Ordinance No. 121,1999, Appropriating Prior Year Reserves in the Sales and Use Tax Fund to Partially Fund the Restoration of the Northern Hotel, Adopted on First Reading The following is staff s memorandum on this item. "Financial Impact This Ordinance appropriates $670, 000 ofprior years' Use Tax Carryover Reserve held in the Sales and Use Tax Fund. The remaining balance after this appropriation is approximately $4.3 million. Executive Summary As a result of a fire in the 1970's, portions ofthe Northern Hotel were condemned and the majority of the building remains vacant and in disrepair. In 1978, the City Council adopted Resolution 78- 373 July 27, 1999 37, which pledged the City's fullest cooperation and assistance to any and all parties actively engaged in the restoration and reconstruction of the Northern Hotel. Several attempts by various parties to promote the restoration of the Hotel have failed. In the latest effort, Funding Partners for Housing Solutions and the National Development Council (NDC) formed a development team to redevelop and restore the Hotel as the cornerstone of the Downtown Area and add affordable housing for the community. ADC is recognized nationally as one of the leaders in the development of quality affordable housing using Housing Tax Credits and other public funds. Funding Partners and NDC are in the process of forming a limited partnership that will include certain private equity investors. The limited partnership will be the owner of the Northern Hotel. In March 1999, Funding Partners signed an agreement for the purchase of the Northern Hotel that provides an excellent opportunity to restore the Hotel as a cornerstone in the Downtown Area and add affordable housingfor the community. In order to effectively leverage private, state, and federal dollars for the restoration, Funding Partners has requested that the City and the Downtown Development Authorityparticipate in the project with a commitment ofapproximately $1.0 million. Because of the timing of required applications for Housing and Historic Tax Credit allocations (April 2, 1999), letters of commitment were needed by April 1, 1999. In March, the Board of the DDA pledged the Tax Increment potential (approximately $331,000) towards the project. The request for a commitment of $670, 000 from the City was discussed with the Finance Committee on March 18, 1999. The Finance Committee recommended that a City commitment of $670,000 be made. The prospect of this commitment of funds by the City and the DDA was instrumental in successfully obtaining approximately $5.0 million in historic rehabilitation and low income housing tax credits. The proposed redevelopment and restoration plan calls for the following features: 1. Historic renovation of the building to its 1936 Art Deco facade. 2. Designation of the first floor of the building, 13,800 square feet, for commercial retail use. Both College Avenue and Walnut Street sides of the building will have restored storefronts. 3. Designation of the renovated lobby as public space. 4. Designation of the top three floors of the building for rental housing units. Forty-seven apartments will be created - 6 efficiencies, 38 one -bedroom and 3 two -bedroom units. Rents will range from approximately $375-$480, making them affordable to persons at 40% of median income. The funding sources identified for this project require professional management of apartment units and a minimum $300/unit/year Replacement Reserve. These measures are required to protect investor equity in the project. Including 7,500 square feet of 374 July 27, 1999 basement storage/laundry space, and the new addition described below, a total of 43,100 square feet is designated as residential. 5. Construction of a new 4,400 square foot addition to the third and fourth floors of the Hotel, joining the "v"shaped building into a triangle. This addition will house 8 ofthe 47 apartment units and will allow for a single roof over the entire building. This design innovation will solve complex energy and drainage problems, create an atrium/courtyard into which interior apartment units will look, and allow for natural lighting of the stained glass dome on the lower level. The Northern Hotel site is properly zoned for the proposed project and all infrastructure is in place including streetpaving, curb and gutter, sidewalks, water, sewer, gas, electric, cable and telephone service. In addition, the developer has completed a study on the building's structural integrity and Phase I environmental mitigation measures are included in estimated redevelopment costs. Total project costs are estimated at $9,692,823. The City Manager is in the process of negotiating a written agreement with Funding Partners and NDC (to be executed on behalf of the limited partnership). The agreement will require that the residential portion of the Northern Hotel remain affordable for a twenty year period, along with additional requirements to protect the City's interest in theproject. The agreement will be finalized prior to August 15, the expected date of closing on the purchase of the Northern Hotel property." City Manager Fischbach presented background information regarding the agenda item and spoke regarding the project's timetable, the significance of the restoration and the addition of low income senior housing to the community. He stated that the Downtown Development Authority has committed $331,000 to the project, and that the City has been asked for $670,000 in funding. Karen Gerard, Executive Director, Funding Partners for Housing Solutions, presented visual information, explained the proposed renovation in detail, described the benefits of the project to the community, and spoke concerning the affordable housing component of the project. She stated that City funding will provide leverage for acquiring other funding. City Manager Fischbach noted that the National Development Council is a keypartner in the project. Kelly Ohlson, 2040 Bennington Circle, spoke regarding his involvement in the history of the Northern Hotel for the past 20 years and expressed concerns about the Council's oversight of DDA projects and unanswered questions regarding this specific project. He stated that he is in favor of the project but encouraged greater public accountability for spending of taxpayer dollars. City Manager Fischbach expressed a willingness to meet with Mr. Ohlson regarding the project. 375 July 27, 1999 Councilmember Wanner made a motion, seconded by Councilmember Weitkunat, to adopt Ordinance No. 121, 1999 on First Reading. Councilmember Wanner spoke regarding the complexity of the project, the need for more low income housing for seniors, and the benefit of dealing with a health and safety liability in the downtown. Councilmember Mason requested further information regarding Mr. Ohlson's concerns and the City Manager's reply to those concerns prior to Second Reading of the Ordinance. Mayor Martinez spoke in favor of the project and noted the public benefits of the project. The vote on the motion was as follows: Yeas: Councilmembers Byrne, Kastein, Martinez, Mason, Wanner and Weitkunat. Nays: None. THE MOTION CARRIED. Other Business City Manager Fischbach reported that agreement has been reached with Larimer County regarding Justice Center fees. In summary, the County will pay street oversizing fees of $98,063.00; capital fees for Municipal Court of $30,825.77; and capital fees for police facilities in the amount of $19,115.42. He spoke regarding cooperation between the City and County. The meeting adjourned at 7:10 p.m. ATTEST: City Clerk k3 Adiournment 376 Mayor