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Home My WebLink AboutMINUTES-03/26/2013-AdjournedMarch 26, 2013 ,_ COUNCIL OF THE CITY OF FORT COLLINS, COLORADO Council -Manager Form of Government Adjourned Meeting — 6:00 p.m. An adjourned meeting of the Council of the City of Fort Collins was held on Tuesday, March 26, 2013, 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: Manvel, Ohlson, Poppaw, Troxell and Weitkunat. (Secretary's note: Councilmember Kottwitz arrived at 6:05 p.m. and Councilmember Horak arrived at 6:10 p.m.) Staff Members Present: Atteberry, Nelson, Roy. Agenda Review City Manager Atteberry stated the Urban Renewal Authority meeting scheduled to follow the Council meeting is anticipated to be held tomorrow evening. Additionally, the work session regarding the City Council end -of -term report has been cancelled and a written report will be provided in lieu of the work session. There has been an advertised need for a possible Executive Session which is also likely to occur tomorrow evening. CONSENT CALENDAR 4. Second Readine of Ordinance No. 047-2013, Enacting Water Rates Adjustments for the Water Supply Shortage Response Levels Established in the Water Supply Shortage Response Plan and Amending the Plan. Based on the uncertainty of how much water supply will be available from the two main sources of supply, the Poudre River and Colorado -Big Thompson Project (CBT), which was presented to City Council as a staff report on February 5, the City Manager will declare Response Level 1 water restrictions for the City of Fort Collins on March 6 for the water restrictions to be effective on April 1, 2013. The Water Supply Shortage Response Plan, Ordinance No. 048, 2003, recommends water rate adjustments for Response Levels 2, 3 and 4. In preparing for the potential of moving to Response Level 2 or higher, Fort Collins Utilities staff has determined the amount that water rates need to be increased for each Response Level. Revising rates to be revenue neutral is consistent with the intent of the Water Supply Shortage Response Plan and how the rates were developed in.2003. This Ordinance, unanimously adopted on First Reading on March 18, 2013, attempts to maintain revenues at the 2013 budgeted level for each possible Response Level. The Ordinance also increases the Excess Water Use Surcharge for each Response Level beginning with Response Level 1. 505 i\ March 26, 2013 At the time the City Council declares that municipal water supply conditions are such that water restrictions are no longer needed, all water rates will revert to the rates shown in Chapter 26 of the City Code. In preparation for the implementation of the Water Supply Shortage Response Plan in the coming months, the City Manager has recommended two amendments be made to Ordinance No. 048, 2003.One involves changes to the definition and use of"water fountains" (changed to "water features") and the other involves changes to the terms of permits for large acreage and parks and athletic/playing fields. 5. Resolution 2013-027 Making an Appointment to the Senior Advisory Board. A vacancy currently exists on the Senior Advisory Board due to the resignation of Rebecca Lindsey. Mayor Karen Weitkunatand CouncilmemberGerry Horakopted toreadvertiseand interview new applicants for the vacancy. The interview team is recommending Joann Thomas to fill the vacancy, with a term to begin immediately and set to expire on December 31, 2014. Mayor Pro Tern Ohl son made a motion, seconded by Councilmember Poppaw, to adopt and approve all items on the Consent Calendar. Yeas: Weitkunat, Manvel, Kottwitz, Ohlson, Poppaw and Troxell. Nays: none. Items Relating to an Agreement Between the City of Fort Collins, the Fort Collins Downtown Development Authority, and Woodward, Inc. to Provide Business Investment Assistance for the Relocation and Construction of the Company's Headquarters and Expanding its Manufacturing and Office Facilities. Adopted on First Reading The following is the staff memorandum for this item. "EXECUTIVE SUMMARY A. First Reading of Ordinance No. 55, 2013, Authorizing and Approving the Execution and Delivery by the City of an Agreement with Woodward, Inc. and Related Documents, Including the Authorization ofa Borrowing, in Connection with an Economic Development Project Relating to Woodward, Inc., and Providing Other Matters Related Thereto. B. First Reading of Ordinance No 56, 2013, Appropriating General Fund Reserves to Fund Capital Public Improvements in Connection with a Community Development Business Assistance Agreement Between the City, Downtown Development Authority, and Woodward, Inc. Regarding the Link-n-Greens Development. City Council will consider two 'items related to providing business investment assistance to Woodward, Inc. to encourage the relocation and construction of the company's headquarters and expanding its manufacturing.facilities in Fort Collins. The project will retain or create between I, 400 and I, 700 primaryjobs in the community, provide 29 acres of improved open space along the river (including habitat restoration), and anchor the southeastern edge of the River District with a major employer. The two items include: 1: March 26, 2013 A. . An Agreement between the City, Downtown Development Authority, and Woodward, Inc.; I m4f B. An appropriation of $2.27 million in General Fund Reserves in connection with the Agreement with Woodward, Inc. BACKGROUND /DISCUSSION Project Overview Location This area consists of 101.5 acres and is generally located at the southwest corner of East Lincoln and South Lemay Avenue. The Cache la Poudre River is the southern boundary and the majority of the western boundary of the P.D.P. The Poudre River Trail is located on the property within an easement. The project is zoned C-C-R Community Commercial — Poudre River District, and the proposed uses are permitted in this zone district at this location. History The land is currently used as the Link-n-Greens golfcourse which has been in operation since 1986 The property contains a barn, silos and outbuildings known as the Coy/Hoffman Barn, which were designated on the Colorado State Register of Historic Properties in 1995. The barn is associated with the earliest development of agriculture in the area, having been built during the 1860s as part of a homestead. Woodward has expressed an interest in working with the City in recognizing the historic importance of the downtown river corridor. Although there are no specific plans to date, they have indicated an interest in participating in some manner in recognizing the Coy Barn and other historic features. As part of the development the barn will be renovated. A specific use has not been identified, although, in, order to protect the structure, it may not be open to the general public. Project Description The proposed Woodward project is being established to accommodate a new campus to accommodate the company's continuing growth. Woodward is a global company and has been in Fort Collins since 1955. They have continued to experience growth in sales and breadth of market of their products. The company serves two major market sectors, including aerospace and energy. It is Woodward's intent to expand theirfacilities to meet the growing demandfor theirproducts and to expand in northern Colorado. Over time, the project will be home to their international headquarters and for _the global headquarters of up to two of their businesses: Industrial Turbomachinery Systems (ITS) and Engine Systems (ES). As a large base level employer Woodward generates over $2 billion in sales per year. Woodward has outgrown their Drake facility and need to expand their overall facilities to accommodate continued growth. Woodward intends to develop a campus of office, manufacturing, and testing facilities on the Link-N-Greens site. The campus will include a collection of buildings with parking areas served by private drives. In conjunction with the campus, a retail and commercial center is proposed to be located in the southeast corner of the site. Approximately 507 March 26, 2013 70, 000 square feet of office and commercial development is planned for this area. The combined building -footprint of the industrial/manufacturing facility is projected to be 600,500 square feet in buildings rangingfrom one to three stories. A future phase ofconstruction will contain an unknown amount of commercial development including service based restaurant, retail and office for the benefit of the general public and Woodward "employees. Development ofthe industrial campusfor Woodward will occur in fourphases beginning with a first phase of approximately 259,300 square feet. Timing of each of the phases will be based on market demand. Unlike the Drake campus this one will not be fenced. Instead security will be through other measures, primarily at the buildings. This will allow the campus to have an open street front landscape appearance. The project plan is divided into Phase One and Future Phases up to four phases. Phase One includes the core components of the Woodward operations and would represent over $100 million in investment. Over all four phases construction would be approximately 5200 million (includingproduction equipment). The river restoration area would be dedicated to the City and be constructed with phase one. The project anticipates four phases as described below • Phase I — 259, 000 square feet of manufacturing and office space including the relocation of the ITS operations from the Drake/Lemay site. In addition, this phase includes receiving and material space, a production support building, and a cafe/multipurpose building. Woodward has committed to start this project with final approval of this Agreement and their Board of Directors. • Phase II— 60,000 square feet office building to include the relocation of the Corporate Headquarters from the Drake/Lemay site. Final',decision to proceed on this phase anticipated in early 2014. • Phase III— 209,000 square feet ofmamaacturing and office'space including the relocation of the ES operations from Loveland. This expansion may occur on the Drake/Lemay site rather than at Link-N-Greens. • Phase IV— 72,000 square feet Energy Tech Center. In recent discussions this phase may happen concurrently with Phase 11. A decision on this phase is likely in early 2014. • Drake/Lemay Facility — The facility Will remain a productive part of Woodward's operations. At this time, it is unclear what aspect of the business will use the facility. Woodward has been in discussion with the City over the, last 6 to 8 months on details of the project layout and relationship with the community. The project was reviewed and approved unanimously by the Planning & Zoning Board on February 21. There was no opposition to the project. Woodward intends to close on sale of the property in April or May of 2013 with site workfor Phase I commencing in August or September of 2013. The estimated time of completion of construction for Phase I would be late winter of 2015 with delivery of production parts by 2016. Public Improvements The project will utilize Tax Increment Financing to make various upgrades to various site features. The first three public improvements listed below will be completed as part of Phase I. Following is a brief description: March 26, 2013 • Transmission Line — Currently there is a significant Platte River Power Authority ("PRPA') transmission line that crosses the site diagonally from Northeast to Southwest. The current location of the transmission line impacts the development potential of the property. The City, working with PRPA, will cause the transmission line to be relocated along Lemay Avenue extending across Mulberry Street and connecting back to the current alignment south of the Poudre River. The route of the transmission line will be positioned back from Lemay far enough to allow for a row of trees. Additionally, the new route will reduce the impact to the City owned natural areas along the river reducing the number of existing towers in the natural area. The Land Conservation and Preservation Board supported the proposed alignment on March 13, 2013. • Right of Way Improvements — The City will design and construct improvements to both Lincoln Avenue and Lemay Avenue required by the proposed relocation and expansion of Woodward's corporate headquarters and production facility. The improvements along Lincoln Avenue will generally include a center turn lane, bike lanes, and a temporary pedestrian path along the south side of the street. Improvements to Lemay Avenue will include a parkway, trees, sidewalk, street lighting, and other improvements to comply with the full street cross section. Some improvements may be on an interim basis until funds are available for the broader Lincoln Boulevard Improvements. • Open Space Improvements — Woodward will gift a 29 acre parcel to the City for the purpose of restoring the property to a natural condition. The restoration will include landscape and habitat improvements based on a design developed by the City's natural areas department. The tax increment financing will be used to help offset the design and construction costs related with these improvements. • Lincoln Boulevard Improvements — To the extent available, tax increment financing may provide funds to assist with future enhancements along Lincoln Avenue. intent of the improvements is to transform the standard cross section into a boulevard similar to Mountain Avenue west of Old Town. The specific details of these improvements are not set but may include construction of new or improved street and intersections, sidewalks and benches, bicycle lanes and racks, trees and other landscaping, gatetvay features, transit related infrastructure, storm water improvements, directional signage, public art and other project for a positive neighborhood image, and interpretive features of culture and history relevant to the area. These improvements are subject to a successful voter initiative to provide capital funding for the portion�of the cost not covered by tax increment financing and subject to the availability of tax'increment depending on the timing of Phase III construction. Utility Partnership There is an opportunity in the future for Woodward to partner with the City and participate in the Fort Collins Solar Program (FCSP). The intent ofthe FCSP is to enter into 20yearpurchase power agreements with commercial customers for the purchase of the energy produced from customer photovoltaic systems. The program is currently funded in the 2013 and 2014 budgets. Timing is a significant issue related to solar installed with this program. Utilities are allowed to apply a multiplier of 3 towards meeting the State's Renewable Energy Standard up until July 2015. The FCSP must use the multiplier to be economically practical. Rooftop space for the installation of solar at Woodward may or may not be available until2015. Fort Collins Utilities has expressed an interest in working with Woodward as a participation in the Note, the one caveat will have to be 509 March 26, 2013 completion of any solar array whose energy will be purchased through the FCSP before July of 2015. Fort Collins Utilities (FCU) is working with Woodward through the Integrated Design Assistance Program (IDAP) and has committed 575,000 in funds to assist with this energy efficiency design. Through this program, FCUis providingfinancial and technical assistance in the design phase and will provide a financial incentive based on facility energy savings. Utilities staff are participating in an early design charrette attended by multiple stakeholders to promote a holistic approach to design. A copy of the preliminary IDAP package is attached. In addition to the work on site, there is also discussion related to a partnership that would utilize Woodward equipment, which would allow them to demonstrate their equipment, at the Drake Waste processing plant to use the methane created in the treatment process to make electricity. The electricity created would qualify towards our Renewable Energy Standard. PRPA Transmission Line Relocation IGA The City will enter into an Intergovernmental Agreement ("IGA) with PRPA subject to approval by the City Council. The IGA provides that the City of Fort Collins will pay for the relocation and installation of the transmission lines that currently cross the property. Funding -for the relocation of the lines will be paid from tax increment financing (" TIF) generated by the development of the Woodward Property. The IGA has been presented to and approved by the PRPA Board of Directors. Relocation of the line will occur starting in 2013 and will result in one new transmission tower placed in a natural area just south of Mulberry and the removal ofthree transmission towers northwest ofMulberty in a natural area. The City, upon approval ofthe IGA will manage the project including all public outreach. Public Benefit Fort Collins provides a high quality ofplace attributed to the lively historic downtown and the city's impressive parks, trails and open space networks. These community assets make Fort Collins an attractive place for both a well-educated workforce and diverse industries. Woodward's proposed relocation and expansion represents an opportunity to strengthen the existing high quality ofplace. The Project meets numerous City Plan policy objectives, occurs in a Catalyst Project Area (as defined by City Plan), and presents the opportunity to enhance and expand the Poudre River Corridor natural area. Thus, the project represents an opportunity to achieve more than economic outcomes but an opportunity to strengthen the overall community. City Plan Policy Objectives The project as proposed by Woodward meets a variety of City Plan objectives, including but not limited to: Economic Health EH 1.1— Support Job Creation: The project will create between 185 and 400 new primary jobs as well as transfer between 515 and 600 jobs from within the region. 510 March 26, 2013 • EH 1.4 — Target the Use of Incentives to Achieve Community Goals: The project will achieve broader community goals as described, including natural areas restoration, open space preservation, and infill/redevelopment. • EH 2. 1 —Support Targeted Industry Clusters: Woodward is a member ofthe Clean Energy cluster and an active member of the Colorado Clean Energy Cluster non-profit entity supporting clean energy research and development. • EH 4.1 — Prioritize Targeted Redevelopment Areas: The Link-N-Greens site is within an identified targeted redevelopment areas within City Plan. Environmental Health • ENV 1.1—Protect and Enhance Natural Features: The project as proposed and approved by the Planning and Zoning board protects and restores approximately 29 acres of open space adjacent to the Cache la Poudre River. • ENV 2.1 — Maintain System of Open Lands: The project adds to the open space system surrounding the Cache la Poudre River. Through habitat restoration it will enhance the integrity of wildlife habitat. • ENV2.10— Maintain Access: The Poudre River'Trail currently travels along the boundary of the project. Subject to available funding, the trail will be moved further from the river's edge with select developed river access points. This approach provides access to the natural area while providing for habitat restoration. • ENV 5.4 — Support Renewable Energy in New Development: The project is actively engaged in the IDAP program provided by FCU to achieve facility energy savings. In addition, Woodward is looking to partner with FCU through the Fort Collins Solar Program. • ENV 7.11 —Participate in Research, Development. and Demonstrations: Woodward and FCUare contemplating a partnership to foster research, development and demonstrations projects in the renewable energy and energy management sector. • ENV 24.2 — Conserve Natural Features: The project includes a dedication of 29 acres along the Cache la Poudre River. This land also includes an area of a historic river oxbow. • ENV24.4 —Restore and Enhance: The project includes the restoration of landscaping and habitat on a 29 acre parcel adjacent to the river. • ENV 26.3 — Ensure Setbacks for Channel Instability and Improve Channel Migration: The 29 acre natural parcel includes an opportunity to stabilize the river bank and allow for greater lateral migration, potentially in the location of the historic river oxbow. Community and Neighborhood Livability LIV 5.1 — Encourage Targeted Redevelopment and Infill: The Link-N-Greens site is encompassed by the identified targeted redevelopment areas within City Plan. LIV 21.4 - Provide Access to Transit. The project includes access to bus stops along Lincoln Avenue and LemayAvenue. In addition, future enhancements to Lincoln Avenue may include additional transit facilities intended to provide circulation to and through Old Town. 511 March 26, 2013 Transportation • T3.3 — Transit Supportive Design: Interim andfuture enhancements to LincolnAvenue will seek to integrate transit and alternative modes of transportation into the immediate improvements and final design. Catalyst Project Areas During the Plan Fort Collins process project team members, City Council, and the public identified areas throughout the city that have the potential to "showcase "opportunities to embrace the Plan Fort Collins vision themes oflnnovate, Sustain, and Connect. Through a combination ofpublic and private actions that complement and build upon one another, these areas have the potential for lasting, desirable change. TheLincoln Triangle Area was identified as one of these Catalyst Project Areas. ' The Lincoln Triangle Area contains a rich mix of historic and new development as well as substantial vacant and underdeveloped parcels. The Link-N-Greens site is one such underdeveloped area. The proposed Project meets many aspects of the Area Vision, including: • Showcase Heritage: The Coy/Hoffman Barn will be maintained as a part of the project preserving a link to the history of the area. • River Links: The dedication of additional open space along the river will provide an opportunity to enhance and expand the Poudre River corridor. • Connect: The interim and ultimate improvements along both Lemay and Lincoln Avenue will provide additional pedestrian and bicycle connective in the area. Finally,. the Lincoln Triangle Catalyst Project Area lists several priority projects; one of these projects is the improvement of Lincoln Avenue. The City has already begun the planning of these improvements; however, the project, ifall phases are completed, may provide much needed funding for the completion of the project. Net Benefits to Other Taxing Entities The Project will generate additional benefits and costs for local taxing districts other than the City and the DDA. Additional discussion of the City and DDA fiscal impacts occurs below under the Financial Assistance Overview section. Both Lorimer County and the Poudre School District ("PSD') will see net benefits from the project, primarily from additional property tax revenue. Despite the site's location within the DDA, both Larimer County and PSD retain 50 percent of any property tax increment generated in the district. The net benefits to each are summarized below: Larinter County: Between $5.5 million and $5.8 million in net benefits with a present value of $3.9 million to $4.1 million (using a 5 percent discount rate). PSD: Between $11.7 million and $12.0 million in net benefits with a present value of $8.1 million to $8.2 million (using a 5 percent discount rate). 512 March 26, 2013 Financial Assistance Overview The opportunity to retain approximately 700 primary jobs and encourage the expansion of a business to include 700 — 1,000 new primary jobs to Fort Collins (with 185-400 new jobs to Northern Colorado) generates significant positive economic impacts to the community (See Financial/Economic Impacts). As a result, the City Council will consider a Business Assistance Agreement (the "Agreement') providing three primaryforms ofinvestmentin the proposed Project. These investments include: (1) tax increment assistance through the DDA; (2) rebate of use tax on eligible manufacturing equipment and construction materials; and (3) rebate of applicable development review, capital expansion, street oversizing, and utility plant investment fees ("Capital ExpansionlPIF Rebates'). Table I Business Assistance Package Summary Response DDA Tax Increment Revenues $16.7 MM Manufacturing Equipment and Construction $3.8 MM Use Tax Rebates (80%) Development Fee Rebates (100%) $0.3 MM Capital Expansion/PIF Rebates (8001o) $2.7 MM Total $23.5 MM Tax Increment Assistance Woodward has focused on the Link-N-Greens property (see Attachment]: Project Location Map) for thepotential relocation and expansion ofthe company's corporate headquarters andproduction facilities. On March 5, 2013 City Council, with unanimous support, considered the amendment of the DDA Plan of Development to include the property on first reading of Ordinance No. 49, 2103. By amending the Plan of Development, the City Council enables the use of tax increment financing to support the Project. Based on a Larimer County Assessor Estimate of Future Value dated January 29, 2013 and the initial phasing schedule provided by Woodward, the project will 'generate approximately $16.7 million in tax increment revenue over the remaining life of the DDA area. These funds will be used to reimburse Woodward and the City for several costs associated, with the Project, including: facades, right of way improvements (Lincoln and Lemay), relocation of a Platte River Power Authority (" PRPA ) transmission line, open space restoration, and future enhancements to Lincoln Avenue, as shown in Table 2. In addition, a portion of the tax increment revenue will cover financing cost associated with the reimbursement amounts. 513 March 26, 2013 Building Facades Right of Way Improvements Transmission Line Relocation Open Space Improvements Lincoln Boulevard Financing Total Tattle 2 Summary ofPublie Improvement Costs Estimated Total Cost (Millions) $6.00 $1. 75 $1.30 $3.50 $11.00 $4.00 . Tax Increment Balance* Pledge (Millions) (Millions) $3.80 $2.20 $1.75 $0.00 I $1.30 $0.00 $3.00 $0.50 $2.85 $8.15 $4.00 $0.00 I $27.55 1 $16.70 *Any unfunded balance remaining after the recipient listed in the table. Recipient Woodward City City City City N/A 1 $11.15 1 TIF pledge is the responsibility of the Woodward has agreed to advance the funds necessary io relocation the Transmission Line and construct the Right of Way Improvements and Open Space Improvements (described above). The DDA and City have agreed to reimburse this advance and evidence that commitment with a bond'. Tax Increment revenue will be used to repay the Bond principal and interest on the bond will be variable and indexed to the 10 year U.S. Treasury Note rate. This rate will likely fall well below the current market based cost of capital. Woodward has agreed to these terms as a way to demonstrate their commitment to the community and improvement ofthe Lincoln Triangle Catalyst Project Area. Due to the variable rate and uncertainty regarding phasing, the City has agreed to appropriate $2.2 7 million in General Fund Reservesfor thepurpose ofcreating a reimbursement reserve. These reimbursement reserve funds will only be required if the Tax Increment revenue generated by the project falls short of the amount necessary to reimburse Woodward's advanced funds with interest, as described in the Bond. In the event only Phase I is completed, the entire amount of these funds may be needed to -complete the capital projects. However, if only Phases I, II, and IV are completed; the additional TIF generated by these additional Phases should eliminate the need for the reimbursement reserve funds (depending on the actual schedule of these phases). Use Tax Rebate ' The Bond is being issued pursuant to Article XX, Section 6 of the Colorado Constitution, Article V, Section 19.8 of the City Charter, the Downtown Development Authority Act, the Supplemental Act, and pursuant to the 2006 Election. 2 The actual interest rate will be determined by comparing the 10 year U. S. Treasury Note on the initial advance date compared to the 10 year U.S. Treasury Note on each subsequent anniversary date and using the difference. At no time will the interest fall below 0.25 percent per annum. 514 March 26, 2013 Woodward plans to invest approximately $169.1 million in new buildings and $50.5 million in new equipment as part of the proposed Project. As part of the Agreement, City Council will consider rebating 80 percent ofthe use tax collected in connection with these investments. The rebate would include approximately $2.6 million of the total $3.3 million due on construction materials and $1.2 million of the total $1.4 million due on eligible equipment see Table 3. In both cases, the rebates go beyond the general fund portion of the rate. As a result, the general fund must bear the additional cost of the rebate to avoid impacting revenue associated with the dedicated sales tax rates (e.g., Open Space, Street Maintenance, Building on Basics, and Keep Fort Collins Great). This additional cost will be backfilled from the revenue generated by indirect and induced economic impacts to the community. The estimated total backfill is approximately 5800, 000 for all phases. The actual amount of the use tax rebate will be tied to Woodward achieving an employment level of 1,400 by December 31, 2018. The City will retain 40 percent of any rebate amount until the employment level has been reached by Woodward. If the target employment level is reached after December 31, 2018 but before December 31, 2020 Woodward will receive the retained 40 percent less $500,000 (combined between use tax and development fee rebates). Woodward will not be entitled to the remaining 40 percent if the target level is not reached by December 31, 2020. Table 3 Summary of Use Tax Rebates Retained Estimated Total Tax Rebate Revenue Backfill (Millions) (Millions) (Millions) (Millions) Construction Materials $3.3 $2.6 $0.7 $0.7 Eligible Equipment Total ----� $1.4 $4.7 �$3.8 $1.2 - — — $0.2 $0.9 _ $0.1 $0.8 — Development Fee Rebate As part of the Agreement, City Council will consider rebating 50'percent of the applicable Capital Expansion, Street Oversizing and Utility Plant Investmentfees due for the Project. In addition, City Council will consider rebating 100 percent of the applicable Development Review Fees (e.g., Plan Check, and Base Building Permit Fee). The rebate will include approximately $3.0 million of the total $5.7 million due see Table 4. These fees are collected to offset the cost each new project imposes on the capital infrastructure Within the City. As a result, the cost of the rebate must be backfilled from the revenue generated by indirect and induced economic impacts to the community. The backfilled revenue will make each capital fund whole. The estimated total backfill is approximately $2.7 million. The actual amount ofthe development fee rebate will be tied to Woodward achieving an employment level of 1,400 by December 31, 2018. The City will retain 40 percent of any rebate amount until the employment level has been reached by Woodward. If the target employment level is reached after December 31, 2018 but before December 31, 2020 Woodward will receive the retained 40 percent less $500,000(combined between use tax and development fee rebates). Woodward will not be entitled to the remaining 40 percent if the target level is not reached by December 31, 2020. 515 March 26, 2013 Table 4 Summary of Development Fees Retained Total. Rebate Revenue (Millions) (Millions) (Millions) Backfill Wastewater $0.60 $0.30 $0.30 ' $0.30 Water $1.10 $0.55 $0.55 $0.55 Stormwater $0.30 $0.15 $0.15 $0.15 Electric $2.00 $1.00 $1.00 $1.00 Street Oversizing $1.20 $0.60 $0.60 $0.60 Capital Expansion $0.20 $0.10 $0.10 $0.I0 Development Review/Other $0.30 . $0.30 $0.00 $0.00 Total j $5.70 $3.00 $2.70 $2.70 Use Tax and Fee Backfill As described, the Agreement contemplates rebates of use tax and fees that will require backfill by the General Fund. Based on the Economic Impact Analysis, there is between $3.8 million and $6.2 million in indirect and induced net benefits to the City from various sources over the first 16 years (these sources exclude any revenue from utilities as they cannot be comingled with General Fund revenues to meet these obligations). These indirect and induced impacts and the resulting revenue will backfill the portions of the rebates over a period of between 10 and 16 years depending on financing costs. The total backfill required (including use tax and fees) assuming all phases are constructed on schedule is approximately $3.5 million. However, the actual Project phasing will impact the contemplated use tax rebates and development fee rebates. As stated, the nature of the rebate will require backfillfor a portion of the total rebate amount. Therefore, the backfill shifts depending on the construction phasing. ,Table 5 provides an overview of the total rebates and the required backfill. Under the Phase 1 only scenario the City will rebate $1.37 million in use tax and $1.73 million in development fees for a total rebate of $3.11 million. This scenario requires a backfill of $1.93 million. Furthermore, the hold backof40percent ofthe rebates will influence the actual cash needed in any given year to./and this backfill. The 40 percent holdback ofthe rebates will most likely not be due to Woodward until after December 31,2018 but before December 31, 2020. This lowers the backfill amount as initially need for each phase. Staff continues to evaluate the best method to fund the backfill amount. Use Tax Rebate Use Tax Backfill Table 5 Overview of Use Tax by Scenario Phase I, II, & Phase I Only IV(Millio All Phases (Millions) its) (Millions) $1.37 $2.43 $3.8 $0.29 $0.51 $0.80 1 I 516 March 26, 2013 Development Fee Rebates I $1.73 $2.36 $2.98 Total Rebates $3.11 $4.79 $6.78 Total Backfill Required $1.93 $2.68 $3.50 Initial Backfill (6001o) $1.16 $1.61 $2.10 Holdback (4001o) $0.77 $1.07 $1.40 NOTE: The proposed project is subject to change. Changes in timing, final construction investment, and final equipment purchases will affect both the financial assistance offered by the City and the financial/economic impacts to the City. FINANCIAL / ECONOMIC IMPACTS Economic Impact Analysis Overview The Project will generate economic impacts during construction and operations. The construction activities, occurring while Woodward builds its new facilities, will generate one-time impact for construction workers and businesses in. the area. The on -going operations of the firm will create annual economic impacts, employing workers in the community and supporting additional economic activity throughout the region. The economic impacts were evaluated based on two scenarios: (1) a total employment level of 1,400, including 700 existing employees, 515 employees transferredfrom within the region, and 185 new employees; and (2) a total employment level of 1,700 including 700 existing employees, 600 employees transferred from within the region, and 400 new employees. Both scenarios assume a total investment in the buildings of $169.1 million and $50.5 million in manufacturing equipment. In addition, both scenarios assume an average annual salaryfor all jobs of $76, 000, which equates to 170% of the Lorimer County average annual income ($44,564 based on Bureau of Labor Statistics Employment and Wage data, Fourth Quarter 2011). The economic impact analyses (See Attachment 8 and 9) estimatethe one-time impacts from construction will be the same for both scenarios with approximately 1, 652 jobs supported by the $169.1 million investment at an average annual salary of$55,106. In addition, the analyses estimate that the,facility will support between 1,400 and 2, 227 total jobs see Table 6. These estimates assume a modest manufacturing multiplier for the transferred jobs and a full manufacturing multiplier of 2.23 for the new jabs. The average salary ranges from $49, 794 to $52, 393. Table 6 Summary of Economic Impacts Scenario 1 I Scenario 2 Construction (One -Time) Jobs 1,652 1,652 Earnings $91,034,579 1 $91,034,579 Average Earnings per Job $55,106 j $55,106 Operations (Ott -going)** Jobs 1,400 12,227 Earnings $73,349,666 $110,890,650 Average Earnings per Job $52, 393 I $49, 794 **Total change in earning during the first year of full employment. 517 March 26, 2013 In addition, the analyses evaluate the fiscal impacts to the City of Fort Collins, Larimer County, Poudre School District, and Downtown Development Authority. These impacts include estimates of both revenues and expenses based on the published 2012 budgets for each jurisdiction. Full details of the calculations can be found in the attached reports. Furthermore, the analyses net out the costs of the proposed assistance described above before estimating additional benefits. The net benefits are estimated to range from $8.7 million to $12.0 million (net benefits here includes all revenue sources, e.g., sales and use)tax, utility revenue, etc.); including all revenue sources see Table 7. The net benefits previously described, between $3.8 million and $6.2 million, exclude the utility net benefits included here because the rebate baclfill cannot rely on utility funds to meet that obligation. Assuming a 5 percent discount rate the present value of the estimated net benefits today is between $7.0 million and $9.1 million. Table 7 Summary of Fiscal Impacts Scenario I Scenario 2 Additional Benefits S32,541,701 $50,740,478 Additional Costs ($23,861,724) ( ($38,751,622) Net Benefits $8,679,877 $11,988,856 Present Value of Net Benefits *** $6,957,716 $9,088,081 * * * This analysis uses a 5%discount rate. This project considers an expansion of an existing manufacturer in Fort Collins: Woodward is considering locations outside the City for possible relocation and expansion of its manufacturing and headquarters operations. The company currently employs 700 workers in the City and supports real and personal property of $22.3 million. Woodward's current operations represent approximately $850,000 in net revenues to the City annually. The new construction and expansion would increase the company's impact on Fort Collins by approximately $8.68 million over the next 16 years. Therefore, the estimated value to Fort Collins if the manufacturer were to leave the city is a loss of $22.55 million over the next 16 years or a loss to the city of $1.4 million per year on average or $16.2 million in present value.. More than 27 percent ($6.25 million) of the total net revenue is generated in the first two years as shown in the graph below. NOTE: The proposed project is subject to change. Changes in timing, final construction investment, and final equipment purchases will affect both the financial assistance offered by the City and the financial/economic impacts to the City. General Fund Reserves Appropriation Impact The proposed Project and the Agreement contemplate a phased approach to construction. Due to this phasing, the commitments by the City, DDA, and Woodward shift accordingly. In addition, the timing of the phases may significantly impact the available TIF pledge for the project. There are several potential scenarios that could unfold as Woodward reacts to market demand. The most likely scenarios have been analyzed further. The impacts of each scenario to the TIF and Loan are summarized in Table 8. If Woodward never constructs more than Phase I, then the TIF will not support full repayment of the advanced funds plus interest. The agreement contemplates the City appropriating up to $2.27 518 March 26, 2013 million for the purpose of creating a reimbursement reserve. The need for these reimbursement reserve funds will change as additional phases are completed by Woodward. Assuming Phase I, II, and IV are built, on the current proposed schedule, the need for these additional funds will disappear. Staff recommends this approach because the community receives $4.8 million in public improvements (Right -of -Way improvements and Open Space improvements) at a $2.27 million discounted cost in the worst case. Otherwise, the IFfunds these costs exclusively. In addition, the City has agreed to stand behind the full reimbursement of the advanced funds plus interest regardless of the Tax Increment revenue, interest rate increase, or other unforeseen economic condition. This commitment is, however, subject to annual appropriation as required by the Colorado State Constitution. Table 8 Overview of TIF/Loan b y Scenario Phase (Only (Millions) Total TIFAvailable $7.30 Facade Pledge $1.50 TIF Balance $5.80 Bond Principal I $6.05 Estimated Interest $2.02 Additional Funds Required- ($2.27) ENVIRONMENTAL IMPACTS Landscape Phase I, II, & IV (Millions) $11.10 $2.80 58.30 $6.05 $2.25 $0.00 All Phases (Millions) $16.70 $3.80 $12.90 $8.90 $4.00 Of the 101.5 acre parcel almost one third ofthe site will be preserved 'and restored as natural area. A river restoration area of approximately 28.7 acres is proposed as part of the project, and would be constructed as part of the initial phase. Additionally,, the remainder of the site will be designed incorporating Xeriscape principles. The project's Ecological Characterization Study reports that the Link-n-Greens site contains several natural habitats and features, predominately the Poudre River corridor, several wetlands that have formed along the fringe of the golf course ponds (0.10 acres), and 464 significant trees. The site's existing habitat value is largely contained within the areas immediately adjacent to the Poudre River due to the ornamental nature of the golf course and the lack of habitat diversity associated with a bluegrass lawn. The site has also been evaluated for Threatened and Endangered species and the only potentially suitable habitat was for the Preble's Meadow Jumping Mouse. However, no populations of jumping mouse are known to exist in the Poudre River downstream of Watson Lake (north of Bellevue). To meet the standards associated with the Land Use Code, the project has proposed an overall buffer area of 28.7 acres instead of the 23.4 acres that would be required through the 300'standard. At no point is the proposed buffer zone less than 21Wand the buffer zone is as large as 600' along the historical oxbow (a U-shaped area where the Poudre River was able to meander out of its main channel when it was connected with its floodplain). Staff has worked extensively with the applicant 519 March 26, 2013 to develop a river restoration project that would enhance the overall river habitat substantially beyond conditions existing today. Additionally the Poudre River Trail will be realigned to allow more distance between the river riparian habitats while still providing an interesting experience. Noise Production activities will be conducted within the proposed buildings and the level of noise is not anticipated to exceed maximum allowable Db(A) levels. Buildings and service areas are located interior to the site to mitigate offsite impacts. BOARD / COMMISSION RECOMMENDATION Planning and Zoning Board, February 21, 2013 Water Board, January 17, 2013 Land Conservation and Stewardship Board, March 13, 2013 (Meeting Minutes Unavailable) Economic Advisory Commission, March 15, 2013 (Meeting Minutes Unavailable) PUBLIC OUTREACH Neighborhood Meetings: August 20, 2012(ODP), November 2, 2012 (PDP) Natural Area/River Concept Neighborhood Meeting: January 30, 2013 In addition, the Fort Collins. Area Chamber of Commerce commissioned a study conducted by Behavior Research Center during February 2013. The study measured the attitude ofregistered Fort Collins voters in regard to various issues within the community. Ofthe 301 respondents, most were in agreement on the need to retain existing employers (88%) to create quality jobs. The study specifically asked respondents on whether Woodward, Inc. should be a top priority for the City of Fort Collins. A resounding 85 percent agreed that retaining Woodward, Inc. should be a priority for the City, while 9 percent were not sure and 6 percent did not see this as a priority. " City Manager Atteberry stated this item aligns with the City's economic and land use policies and furthers the City's vision of being a world -class community. Bruce Hendee, Chief Sustainability Officer, stated this is one of the last large infill properties in the downtown area. He noted this project will provide a catalyst for the annexation of the Mulberry corridor. Additionally, this project will help close a gap between several Natural Areas and will further the intent of City Plan to develop this area. The Overall Development Plan and Project Development Plan were unanimously approved by the Planning and Zoning Board. Hendee discussed significant siteimprovements, which benefit the project as well as the community. Most. significantly, a 31-acre parcel will be dedicated to the City to be used as a Natural Area and Lincoln and Lemay Avenues will be improved and funded by tax increment financing. Additionally, a transmission line will be relocated as part of the project. Josh Birks, Economic Health Director, reviewed the economic and environmental benefits of the project. He discussed the way in which the project addresses each of the three main aspects of the vision for the area: showcasing heritage, providing links to the Poudre River, and creating better connectivity. Birks also discussed the project's benefits to other taxing entities, including Larimer 520 March 26, 2013 County and the Poudre School District and discussed the additional benefits in terms ofjobs created by the expansion activity. Mike Beckstead, Chief Financial Officer, reviewed the details of the incentive package which is generally broken into three categories: tax increment financing, use tax rebates, and fee rebates. The four phases of the tax increment total $16.7 million, the 80% use tax rebate will apply to equipment and construction materials and is valued at $3.8 million, and fee rebates equate to $2.7 million for capital expansion, street oversizing, and plant investment fees, and $300,000 for development review fees. Beckstead went on to detail each of the categories. Ross Cunniff, 2267 Clydesdale, questioned the opportunity cost of the package. Zach Heath, 135 South Sunset, suggested using tax revenue from the project to fund affordable housing. Hank Gardner, Fort Collins resident, supported the assistance package and the project as a tremendous opportunity for Fort Collins. Linda Stanley, 2040 Bennington Circle, opposed the extent of the assistance package citing inaccurate benefit estimates. Gordan Thibedeau, United Way of Larimer County, supported the assistance package and commended Woodward on its philanthropic nature. Sherry Grant, Fort Collins resident, supported the assistance package. Mark Weaver, 4412 Idledale Drive, supported the assistance package. Patrick Edwards, 1731 Valley Forge, questioned the risk of the assistance package to citizens. Cheryl Zimlick, Downtown Development Authority member, supported the assistance package. Ann Hutchison, Fort Collins Chamber of Commerce, supported the assistance package. Eric Sutherland, 3520 Golden Currant, supported the assistance package. Ashley Styles, Fort Collins resident, supported the assistance package. Glen Colton, 625 Hinsdale Drive, expressed concern about the extent of the assistance package. Fonda Budai, 2531 Antelope Road, supported the assistance package. Michael Bello, 2309 Sunstone Drive, supported the assistance package. Pete Gasley, Loveland resident, supported the assistance package. Steve Lucas, 4417 Gray Fox, supported the assistance package and commended Woodward on its philanthropic nature. 521 March 26, 2013 Steve Stiesmeyer, Loveland resident, supported the assistance package. Tim Johnson, 1337 Stonehenge, expressed concern about the assistance package and environmental impacts of Woodward. Mel Hilgenberg, 172 North College, supported the assistance package. Bevin Parker, Downtown Development Authority member, supported the assistance package Walt Elish, Northern Colorado Economic Development Corporation, supported the assistance package. Allen Ginsborg, 5700 Hearthstone, supported the assistance package. David May, Fort Collins Chamber of Commerce, supported the assistance package. Nancy York, 130 South Whitcomb, encouraged Council to carefully consider the winners and losers with respect to the assistance package. Councilmember Kottwitz commended the staff report and asked if some of the rebated taxes and fees will be covered by some of the direct and indirect financial impact from Woodward's spending in the community. She asked about infrastructure projects which will be covered by this incentive package. Beckstead replied the economic benefits more than cover the backfrll of the rebates. Hendee stated there will be several million dollars worth of City projects which will occur as a result of the tax increment financing. Councilmember Kottwitz asked about the history of the property in terms of development. Hendee replied the site presented many challenges but Woodward wanted to remain in the community. Councilmember Kottwitz asked for an estimate of Woodward's contributions to the community. Hendee replied Woodward has given $1 million to the Museum of Discovery, $2.5 million to the Engines Lab, and $1 million to the Engineering School at CSU, among others. Councilmember Horak asked about the social and environmental impacts of the company and assistance package. Hendee replied half of Woodward's business involves the development of products for clean and renewable energy. Additionally, it has a strong track record of promoting employment through CSU and Front Range Community College. Councilmember Horak requested additional information regarding emissions prior to Second Reading and asked about the City's role in terms of the workforce center and training for Woodward jobs. Birks replied one of the new goals in the Economic Health Strategic Plan is a focus on talent development in the workforce area. Councilmember Manvel asked why there appears to be a net benefit to the City of $4 million in the first year. Birks replied a significant portion of the initial net benefit is from the construction activity associated with the initial phases. Councilmember Manvel requested additional details prior to Second Reading. ' 522 March 26, 2013 Mayor Pro Tem Ohlson asked if it is the Downtown Development Authority's responsibility if the debt services, come up short. Beckstead replied the commitment of the City is to ensure that Woodward gets reimbursed in full for all of the public improvement costs it puts forward to get the project started. Matt Robenalt, Downtown Development Authority Executive Director, replied the referenced provision avoids the abatement of property taxes below a certain level in order for the DDA to generate enough tax increment revenue to pay its debt service for a project commitment, and is embodied in Section 2.38 of the agreement with Woodward. Mayor Pro Tem Ohlson asked if any enterprise zone tax credits are going to be claimed and what governmental entities they would impact. Birks replied the site is within the Enterprise Zone and stated it will be up to Woodward as to whether or not it wants to apply for those tax credits, which relate primarily to state income tax paid by the company and provide some credit against that income tax for certain investments. Mayor Pro Tem Ohlson requested information and data related to water usage and other environmental impacts prior to Second Reading. Hendee cited an instance in which Woodward quickly responded and mitigated a noise complaint issue. Mayor Pro Tem Ohlson asked how it was determined that Lincoln would be developed as a boulevard -type roadway. Hendee replied there were a number of catalyst projects identified within Plan Fort Collins to demonstrate the themes of innovate, sustain, and connect. One of those projects was the Lincoln Triangle, which has been considered to be an important area that has not received much infrastructure funding. Councilmember Kottwitz made a motion, seconded by Councilmember Troxell, to adopt Ordinance No. 055, 2013, on First Reading. City Attorney Roy read the changes to the Ordinance which Council received in its read -before packet. Councilmember Kottwitz thanked staff and Council for work on this item, which she referenced as a legacy project for the City. She discussed the positive environmental, social, and economic impacts of the project. Mayor Pro Tem Ohlson commented that the Ordinance should reference actual facts relating to tax revenue generation and encouraged consistency relating to land value. He requested additional air, water, and energy information prior to Second Reading and stated documents related to the item should have been available to the public much earlier. He stated he would not support the motion as he cannot identify any tax generation that does not go back to the project. He commended Woodward on being an excellent corporate citizen. Councilmember Troxell commended the project and Woodward. He stated the City's risk is mitigated by the partnership. Councilmember Poppaw thanked the speakers and stated she would support the motion. She encouraged Woodward to increase its giving to the community as it increases its revenue. 523 March 26, 2013 Councilmember Manvel thanked the speakers and commended staff for work on the item. He noted most companies that bring jobs to Fort Collins pay taxes and fees in full; however, this is a special company and situation and the project will be good for the City's future. Councilmember Horak agreed with Mayor Pro Tern Ohlson that information should have been available to the public earlier. He commended Woodward on its job retention and noted the costs associated with. the selected property are larger than with greenfield development. He stated the negative impacts of other types of development would be much greater and losing Woodward would be a large detriment to the community. Mayor Weitkunat stated this is a defining project for Fort Collins and referenced the assistance package as a community investment. The vote on the motion was as follows: Yeas: Weitkunat, Manvel, Kottwitz, Poppaw, Horak and Troxell. Nays: Ohlson. THE MOTION CARRIED. Councilmember Kottwitz made a motion, seconded by Councilmember Troxell, to adopt Ordinance No. 056, 2013, on First Reading. City Attorney Roy read the changes to the Ordinance which Council received in its read -before packet. The vote on the motion was as follows: Yeas: Weitkunat, Manvel, Kottwitz, Ohlson, Poppaw, Horak and Troxell. Nays: none. THE MOTION CARRIED. (Secretary's note: The Council took a brief recess at this point in the meeting.) Ordinance No. 044, 2013, Authorizing the Conveyance to Woodward, Inc. of Two Non -Exclusive Permanent Drainage Easements and a Temporary Construction Easement on City -Owned Property. Adopted on First Reading The following is the staff memorandum for this item. "EXECUTIVE SUMMARY The proposed Woodward Link-N-Greens Campus ('Woodward') will be a master planned campus providing the ability to retain and grow primary jobs for the community. The campus will accommodate Woodward's continued growth of its current operations in Fort Collins. It also includes adjacent commercial services that can be used by Woodward employees and the public with close access to downtown and the Mulberry corridor. The planned campus will help to improve the river corridor through the site including restoration ofthe natural river corridor landscape, habitat, and appropriate recreation opportunities. 524 March 26, 2013 The proposed use is compatible with existing and anticipated development, and supports the City's vision for this area. Fort Collins' City Plan (Plan Fort Collins) identifies this site in its Targeted Inftll and Redevelopment Areas Map and denotes the Lincoln Avenue Area as one of its "Catalyst Project Areas ". These Areas are identified as locations in the city having potential to showcase opportunities to embrace the Plan Fort Collins vision themes of Innovate, Sustain, and Connect. They are viewed as potential placesfor public/private initiatives using a triple bottom line approach addressing economic, environmental, and social factors in a balanced manner. For this development, Woodward has requested that the City grant Woodward two permanent drainage easements for stormwater flows, one which would include construction of aburied drainage pipe and the other for a graded swale. In addition, a temporary construction easement is needed for grading, landscaping, and associated restoration work on City -owned property adjacent to the Poudre River. BACKGROUND /DISCUSSION River Restoration Plan The Link-n-Greens PDP site has been developed and used as a golf course since 1986, and is generally characterized by irrigated turf, man-made lined ponds'and trees planted in patterns that line the golf holes. The Cache la Poudre River is the southerly boundary and the majority of the westerly boundary of the property and the Poudre River trail islocated on the property within an easement. City staff and the project development team have consulted extensively on habitat restoration ofthe buffer zone, the area between the river and office/industrial/commercial development in the project area. Natural Areas staff desires to use the buffer zone to achieve more natural topographic and river flow conditions within the buffer zone and to create and expand native wetlands, cottonwood woodlands, and upland shrublands and grasslands within the buffer zone and the extended riparian restoration area. Project and City planning staff used evaluations of historic aerial photos, river morphology, and existing topography to guide their development of a native riparian restoration planfor the proposed bufferzone in the project area. A detailed plan of the resulting restoration (the "River Restoration Landscape Regimes') is attached. A is plan would include allowing the Poudre River to overflow its banks during high flow periods into a designed overflow channel that would assist in creating adjacent wetlands and areas of upland floodplain forest. Early modeling is showing that the floodplain in the downstream Springer and Williams Natural Areas will be increased by 0.01 feet. The improvements to the floodplain to the northwest benefit the City and the increased floodplain in the natural areas improve wetlands and upland floodplain forest. A floodplain easement on Springer and Williams Natural Areas will not be required -by the City. Instead the City is proposing to issue a Liability Waiver to Woodward, Inc. for their Letter of Map Revision (LOMR'). The north river bank is partially located on the Link-N-Greens property, but also meanders onto adjacent City -owned parcels. In order to accomplish a more holistic landscape restoration effort, efforts would extend beyond the Link-N-Greens property line to allow improvement along the river bank areas regardless of property boundaries. Therefore, several temporary easement locations have been identified on City property that will allow for grading, landscaping, and temporary construction access required to complete this work. % 525 March 26, 2013 The site contains several hundred trees. Many of the trees were "development" trees planted with thegolfcourse. Many ofthese trees are ornamental, non-native species and areplanted in patterns that define the golf course holes and tees. Other trees are "pre -development" trees, mostly associated with the river edge, areas near the Coy/Hoffman Barn, and near the northeast corner of the property. All trees have been assessed for health, species and condition. Most of the trees associated with the previous golf course development will be removed to accommodate the new development pattern. Significant pre -development trees within the river buffer area, the northeast corner of the property, and those associated with Coy/Hoffman Barn will be retained where possible. However, as development and river restoration occurs it will be necessary to remove many significant trees. Reasons for tree removal include: Poor health, as determined by the City Forester; Hazardous conditions; Regrading within the Poudre River buffer zone which will: (1) allow the river to overflow its banks during high flow periods into a designed overflow channel that would assist in creating adjacent wetlands and areas of upland floodplain forest; (2) achieve more natural topographic and river flow conditions within the buffer zone and to create and expand native wetlands, floodplain cottonwood woodlands, and upland shrublands and grasslands within the buffer zone and the extended riparian restoration area; and (3) Incorporate bank stabilization measures in areas identified by the City. These habitat restoration efforts would also enhance the ecological character and function of the river corridor, as well as enhance the natural ecological character of the site. In addition, planned habitat restoration efforts will enhance the existing wildlife movement corridor along the river. The habitat restoration and enhancement plans for the buffer area. will meet the buffer area performance standards specified in the City of Fort Collins Land Use Code. Affected City Properties The City owns several properties adjacent to the Poudre River. The attached Easement Location Map shows the City properties and the areas where the temporary construction easement is requested. The City parcels areas follows: • Parcel A: Udall Natural Area — the City acquired this site in 1994 with funds from Stormwater and Natural Resources for stormwater purposes and for a natural area. • Parcel B: Old Pickle Plant Site, 500 Riverside Avenue— the City acquired this site in 1995 in part as buffer for Wastewater Treatment Plant #1 and Wastewater provided funds for the purchase. • Parcel C: Wastewater Treatment Plant, 920 East Mulberry Street Site was purchased by the Water Utility. • Parcel D: Cityproperty — this site was acquired by the City in 1990 at the same time as the Springer Natural Area at Lemay and Mulberry. When this property was acquired, the uses included natural areas and a buffer for the Waste Water Plant #L wzi March 26, 2013 Parcel E: Colorado Department of Transportation ("CDOT'): This property is owned by CDOT and the City has an easement over a portion of the propertyfor the Poudre Trail. Staff is working to obtain this parcel from CDOTfor the City. Easements Requested by Woodward Drainage Easements Woodward is requesting,two permanent drainage easements both located in Parcel'D. One permanent drainage easement located near Mulberry Street would be for the storm water flows from Woodward's property and a portion ofstorm water drainage from Lemay Avenue. It is Woodward's intention to construct a pipe for these flows. The easement area is 30feetx 100feet and totals approximately 3,000 square feet. At this point in their design, the easement is planned to be in the location as shown on the Easement Location Map. The approximate width, length and total area of this easement is not expected to change during final design; however, the exact location ofthe easement request may shift a few degrees or feet, which may slightly change the total square footage of the easement. 2. The second permanent drainage easement is also located in Parcel D adjacent to the boundary of Parcel E and the Woodward's property. This easement is for concentrated water flows from the water quality pond for the Woodward development. The water will pass through a low flow public trail crossing structure and then will flow through an open channel on the City's property. This easement area is 60 feet x 120 feet and totals approximately 7,200 square feet. Again, at this point in their design, this easement is planned to be as shown on the attached Easement Location Map. As with the other drainage easement, the width, length and total area ofthis easement is not expected to change during final design; however, the exact location of the easement request may shift a few degrees or feet, which may slightly change the total square footage of the easement. Any necessary adjustments to the legal descriptions of either easement will be made prior_ to the signing of the Deed of Easement. Temporary Construction Easement To complete the restoration work described above, Woodward needs a temporary construction easement ("TCE') in Parcels A, B, C, D and E. Woodward will be grading and restoring the areas shown on the Easement Location Map and removing concrete from the River. City staff is working with CDOT to obtain Parcel E. It is anticipated that this conveyance will be completed by April 2013. Staff is requesting that Council authorize the City to grant the TCE on this parcel to Woodward, Inc. after the City acquires the parcel. Because the Temporary Construction Easement is partially on Parcel E, it would not be signed until the City has received and recorded a Deed for Parcel E from CDOT. Woodward will be responsible for restoration of all affected areas. The restoration will be detailed in the Easement Agreement. 527 March 26, 2013 The two permanent drainage easements and the temporary construction easement will not become effective until Woodward, Inc. completes their purchase of the Link-n-Greens property. FINANCIAL /ECONOMIC IMPACTS All areas affected are valued at $5,000/acre. Staff has established a value of $900 for the two permanent easements and a value of $3,590.for the temporary easement for the restoration work. It is staff's recommendation that we do not charge Woodward for these easements because the benefit the City is receiving of the enhanced riverbank due to this restoration exceeds the value of the easements. Ecosystem impact fees for the work within Natural Areas have been estimated at $4,588 and will be further refined at the completion of the project. BOARD / COMMISSION RECOMMENDA TION At its January 17, 2013 meeting, the Water Board unanimously voted to recommend approval of the easements. Atits February 13, 2013 meeting, the Land Conservation and Stewardship Board voted unanimously to recommend approval of the two non-exclusive permanent drainage easements and the temporary construction easement. " Helen Matson, Real Estate Services Manager, discussed the two permanent drainage easements and one temporary construction easement to be granted to Woodward for its project. Mayor Pro Tem Ohlson requested a staff explanation of the value of the property, which has been mentioned to be $3 million, but the City is valuing it at $5,000 per acre. Matson replied Woodward paid a higher amount for its land because it was included with other developable land frontage. The City's property is along the River and, therefore, not developable, so it is valued at a much lower rate. City Manager Atteberry replied he cannot speak to the number mentioned by Mr. Ginsborg; however, the City has consulted with appraisers to arrive at the $5,000 per acre figure. Councilmember Troxell made a motion, seconded by Councilmember Manvel, to adopt Ordinance No. 044, 2013, on First Reading. Councilmember Manvel asked about a CDOT-owned property on the map. Matson replied CDOT acquired the property in the late 1940s for work it was doing on Mulberry. It is an abandoned property and will be quick claim deeded to the City at some point in the near future. The vote on the motion was as follows: Yeas: Weitkunat, Manvel, Kottwitz, Ohlson, Poppaw, Horak and Troxell. Nays: none. THE MOTION CARRIED. 528 March 26, 2013 Resolution 2013-027 Adopting the Affordable Housing Redevelopment Displacement Mitigation Strategy, a Strategic Plan for Preserving Affordable Housing, including Mobile Home Parks and Other Types of Affordable Housing, Adopted The following is the staff memorandum for this item. "EXECUTIVE SUMMARY The City Councilplaced the development ofan "Affordable Housing Relocation Strategic Plan "on its 2012 Work Plan. The purpose of the Strategic Plan was to develop City policies and requirements applicable to redevelopment projects by dffining the City's role, responsibilities, obligations, and involvement in redevelopmentprojects which cause the displacement oflow-income people from their homes (with an emphasis on mobile home parks), whether they are located inside the city limits or within the City's Growth Management Area (GMA), within the restrictions of the City Charter. The Affordable Housing Redevelopment Displacement Mitigation Strategy identifies strategies to preserve existing affordable housing units. It also clarifies City and property-owner/redeveloper responsibilities and obligations to residents when redevelopment projects cause the displacement of low-income people from their homes. BACKGROUND /DISCUSSION City policies contained in City Plan, the City's Comprehensive Plan, and the Affordable Housing Strategic Plan 2010-2014, encourage the preservation of existing affordable housing units, list manufactured housing/mobile homes as an important component ofthe community's housingstock, and call for the mitigation of impacts on residents displaced through the closure of mobile home parks due to redevelopment activities. The City Council placed the development ofan "Affordable Housing Relocation Strategic Plan "on its 2012 Work Plan to address City policies contained in City Plan and the Affordable Housing Strategic Plan 2010-2014. This past fall, City staff, with the assistance ofa consulting team, began an effort to clarify the City's role, responsibilities, and obligations in avoiding the loss ofaffordable housing and dealing with relocation issues when redevelopment causes the displacement of low- income people from their homes. The Affordable Housing Redevelopment Displacement Mitigation Strategy addresses the City Council's request for a change to the current ad hoc, case -by -case methods of dealing with the loss of affordable housing and mobile home parks. For a variety of reasons, a couple of mobile home parks recently closed in Fort Collins, and since the mid- 1990s a total offive parks have closed. These closures displaced park residents and caused them to relocate. In all of the displacement cases, City staffprovided support and collaborated with other agencies to relocate or find other housing for park residents. While there. were some similarities in these park closures, the City's involvement varied, and was basically handled on an ad hoc, case -by -case basis. Affordable multi family rental units are typically considered the more common form of low-income housing in the community. In 2010, the City Council adopted the Affordable Housing Strategic Plan 529 March 26, 2013 2010-2014, which containsfour priority goals for the development ofadditional affordable housing; the preservation of existing affordable units; the addition of units and facilities for special populations (homeless, seniors, etc.); and offering additional home ownership opportunities for low- income families. The City already has several programs in place to acquire, manage, and preserve apartments on a non-profit basis to keep rents at affordable levels and to provide assistance to first- time home buyers. Manufactured/mobile homes are a unique form of low-income housing. Many mobile home residents are homeowners (they own their unit) but lease the land on which their home is located. Closure/redevelopment of a mobile home park means that unit owners must move not only their personal belongings, but also must move the unit itself or find another form of housing — a challenging and stressful situation for residents. The following table presents a comparison of the number of units in designated affordable housing multi -family apartment/condo complexes, where rents are limited to levels affordable to low-income families and that contain long-term commitments (e.g., 30 years) for affordability, versus the number of manufactured/mobile housing units located in mobile home parks within the City limits and boundaries of the Growth Management Area (GMA). Number of Units Category 1,969 Designated Affordable Housing Units in Multi -Family Apartment/Condo Complexes 2,781 Mobile/Manufactured Housing Units within the City Limits and GMA boundary. While not everyfamily residing in a mobile home park qualifies as low-income, information from key stakeholder groups, including mobile homeparkproperty-ownerslmanagers andpark residents, indicates that the vast majority of residents are low-income (including many seniors on fixed incomes). Thus, from the table data above, mobile home units represent a significant proportion of the city's inventory of lower cost/affordable housing. However, there are no requirements that lot rents remain affordable to low-income families, and there no affordability period guarantees with any of the mobile home parks. Most mobile home parkresidents are on month -to -month leases. The Affordable Housing Redevelopment Displacement Mitigation Strategy is a strategic plan that deals with displacement mitigation of families forced to relocate due to redevelopment activities. But, the strategic plan also deals with preservation and stabilization options to reduce the potential for future redevelopment and displacement of low-income residents. Simply put, if a affordable rental unit and/or mobile home park can be stabilized and preserved, it reduces the probability of needing to deal with relocation issues in the future. Topics covered in greater detail in the strategic plan include: A review of current City policies from City Plan and the Affordable Housing Strategic Plan 2010-2014. An inventory and analysis of apartments with income controls and required affordability periods and manufactured/mobile home parks. Options to discourage the loss of affordable housing including affordable rental units and mobile home parks including: 530 March 26, 2013 0 Acquisition of designated affordable units by non-profit agencies (e.g., the Fort Collins Housing Authority) to preserve them in the affordable housing inventory. o Rezoning of mobile home parks into a Manufactured/Mobile Home Park District. 0 Financial assistance for infrastructure maintenance and upgrades. 0 Resident purchase of mobile home parks. • Options to mitigate the impacts of dislocation from affordable housing including: o Requirements of the Federal Uniform Relocation Act. 0 Requirements of the Fort Collins Urban Renewal Authority. o Additional notice of mobile home park closure. o Requirements for a Relocation Report. o Required payment of relocation costs. • Summary of the public involvement process. City Council Work Session, October 23, 2012 On October 23, 2012, the planning team (staffand consultants) conducted a work session with the City Council to review mobile home park preservation techniques and relocation assistance requirements to mitigate the impact on residents displaced and forced to relocate due to a redevelopment project. The team was seeking feedbackfrom the Council as to the level of comfort the Council may have with some of the preservation techniques and relocation assistance requirements researched by the team so far in the planningprocess. A summary ofthe work session is attached (see Attachment]). Council gave direction to the planning team to keep all options on the table, with one exception (the Notice of Vacancy' "Illegal Closures'), and to process them further with the stakeholder groups and the public, before returning to the Council for final decisions. While Council kept many options on the table, it did not mean that all options would eventually be supported and adopted by the Council. FINANCIAL /ECONOMIC IMPACTS Through the provision ofaffordable housing, more ofFort Collins' workforce can reside within the community. This means there is an available labor pool within the city, which is a positive benefit to economic sustainability. Residents ofaffordable housing include teachers, emergency services personnel, retail clerks, office support staff, etc., who all provide needed goods and services to Fort Collins residents on a daily basis. e Redevelopmentprojects canproduce significant benefits for Fort Collins, whether in increased sales and property tax, or by removing blighted or underused properties, or by generating jobs or employment. So, it is always wise to consider whether some types of redevelopment should be exempted from displacement mitigation strategies because they could produce benefits to the City that offset (or more than offset) the costs they impose on current residents of the property. Requirements for redevelopment projects to pay the relocation costs of displaced low-income families would eliminate the need for the City to consider contributing funds for relocations purposes. Requirements for redevelopment projects to pay for the relocation of displaced families will increase the costs of the redevelopment project and could make some projects economically infeasible. ENVIRONMENTAL IMPACTS 531 March 26, 2013 Affordable housing helpsprovidefor a healthy environment. By offering affordable housing options for low-income people, more of Fort Collins' workforce can live in the community instead ofbeing forced to live outside the community and commute into the city for work. This helps reduce traffic congestion and, thus, improves air quality. Affordable housing developers, including for profit and non-profit agencies, are utilizing green building practices. Green building practices are being used in both new construction and major rehabilitation of existing housing unit projects. These practices include geothermal applications and other energy saving techniques. Most new affordable housing developments and significant rehabilitation projects utilize financial subsidies from federal grant programs (e.g., CDBG and HOME). Utilization of federal funds requires an Environmental Assessment and an analysis of floodplain hazards, noise, hazardous materials, etc. STAFF RECOMMENDATION Staff recommends adoption of the Affordable Housing Redevelopment Displacement Mitigation Strategy. Affordable rental units (apartments and homes), mobile homes (pre-1976), and manufactured homes (1976 and later, which meet HUD safety standards) remain an important source of affordable housing in Fort Collins and Larimer County. When affordable residential units are lost, they compound the difficulty of meeting the city's affordable housing needs. Many of the existing mobile/manufactured homes are located in mobile home parks, which raise challenges when mobile home parks are redeveloped for other uses. Mobile/manufactured home owners own their homes but rent the spaces where they are located. When mobile home parks close, residents need to move their homes to other locations, which is complicated by the fact that many homes are old and difficult to move and spaces in mobile home parks are often in short supply (particularly for older homes). If the mobile/manufactured home cannot be moved, the owner faces the loss of not just a place to live but an asset that they have purchased. In recent years, Fort Collins has experienced several mobile home park closures, has been asked to assist in relocating residents, and has done so on an ad hoc, case -by -case basis. .The Affordable Housing Redevelopment Displacement Mitigation Strategy document sets a strategic policy direction for the City to address these issues in a more consistent way in the future. TheAffordable Housing Redevelopment Displacement Mitigation Strategy recommends that the City ofFort Collins take the following seven steps to address the above issues, each of which is described in more detail in the Strategic Plan document. Some ofthe following recommended steps have been modified from the Public Review Draft document based on recommendations by the Affordable Housing Board and/or the Planning and Zoning board - the footnotes help explain the changes. A table comparing the initial recommendations in the Public Review Draft and changes made and contained -in the Affordable Housing Redevelopment Displacement Mitigation Strategy document presented to the City Council isprovided in the Board/Commission Recommendations section below. 1. Continue to expand the inventory of "designated affordable "dwelling units, buildings, and complexes through current programs administered by the Fort Collins Housing Authority, other non-profit affordable housing agencies, and private developers. 532 March 26, 2013 2. Continue to offer relocation assistance to those residents of affordable units redeveloped with the use offederal, Fort Collins Urban Renewal Authority (FCURA), or other Cityfunds, but do not extend a requirement to pay relocation expenses in private redevelopment projects that do not use public funds and do not require a discretionary land use decision by the'City. t 3. Draft a Manufactured Home Park Zoning District and rezone into that district those mobile home parks that are relatively large and can serve as significant sources of affordable housingfor the long term. From 1965 to 1997 the City offort Collins had two mobile home parkzoning districts and most of the existing mobile home parks located inside the city limits were zoned in one of those districts. A copy of the City's former M-M Medium Density Mobile Home Park district is attached for reference (see attachment 2). 4. Create a loan orgrant program, or use the existingJinancial assistance competitive process, that would be available to finance significant investments in new or existing affordable housing infrastructure that would be available to those larger mobile home parks willing to commit to continuing operation of their mobile home parks for a at least 10 years.' 5. Require a one (1) year notice of closure period for mobile home parks (rather than the 6 month minimum notice required by the state). As an alternative, allow a six (6) month closure notice if the park owner delivers to each resident on or before the notice date a detailed Relocation Report listing all available mobile home park spaces available within 25 miles, providing the contact information for each of those park owners, and including documented estimates of the costs ofmovingmobile/manufactured homes to those locations. In addition, the notice provision shall also alert residents that the park maybe closed before the mandatory notice period has expired if all park residents have been successfully relocated to each party's mutual satisfaction.3 6. Require that redevelopment projects involving Cityfinancial assistance or a discretionary land use decision by the City pay (a) actual costs of relocating owner occupied mobile/manufactured homes to a new site within a 25 mile radius of the mobile home park, up to a maximum of $6, 000 for a single -wide home and $8, 000for a double -wide home, and (b) the actual value (as determined by the County Assessor) of any home that is structurally able to be moved but that cannot be moved due to the unavailability ofany spaces within 25 miles, and (c) one-half of the actual value (as determined by the County Assessor) of any t The Fort Collins Urban Renewal Authority is currently considering narrowing its relocation assistance policies to apply only when there is an eminent domain/condemnation action by the URA. This policy change would have a significant impact on mobile/manufactured home owners, since they do not own the land that is the subject of the condemnation action and generally do not participate in the negotiations. This represents a departure from federal Uniform Relocation Act requirements followed by the Fort Collins URA in the past, which were designed to protect renters in these types ofsituations. - a Wording revised to broaden applicability to all affordable housing infrastructure, as recommended by Planning and Zoning Board. 3 Wording revised to reflect recommendations of the Affordable Housing Board 533 March 26, 2013 mobile/manufactured homes that cannot be moved due to structural weakness or poor condition.° Build the capacity of homeowner groups, non-profit affordable housing providers, and support organizations to purchase affordable housing types, including mobile home parks, offered for redevelopment and manage them as long-term sources of affordable housing.' BOARD / COMMISSION RECOMMENDATION Affordable Housing Board The Affordable Housing Board conducted a public hearing on February 7, 2013, to solicit comments on the Public Review Draft of the Affordable Housing Redevelopment Displacement Mitigation Strategy. The Board recommended changes to two of the seven recommendations as contained in the Public Review Draft of the Affordable Housing Redevelopment Displacement Mitigation Strategy. These changes have been incorporated into the recommendations listed in the previous section. A copy of the Board's meeting minutes is attached (see Attachment 3). Planning and Zoning Board The Planning and Zoning Board conducted a special public hearing on March 15, 2013, to solicit comments on the Public Review Draft of the Affordable Housing Redevelopment Displacement Mitigation Strategy. Minutes of the March 15, 2013, Planning and Zoning Board Meeting are attached (see Attachment 4). Presented below is a table comparing the recommendations as contained in the Public Review Draft document, to the changes recommended by the Affordable Housing Board, to the changes recommended by the Planning and Zoning Board, and whether or not changes were made to the recommendations in the Affordable Housing Redevelopment Displacement Mitigation Strategy document presented to Council. Comparison of Recommendations from Affordable Housing Board and Planning and Zoning Board Public Review Draft 6 City Council Document Public Review Draft Affordable Housing Planning and Zoning City Recommendations Board Board Council Recommendations Recommendations Document 1. Continue to expand the No change No change No change —inventory o "designated 'Affordable Housing Board recommended that this provision be strengthened, and Planning and Zoning Board recommended that it be deleted. Recommendation remains unchanged from Public Review Draft, except that relocation cost caps recommended by the AHB have been included. ' Wording revised to reflect Planning and Zoning Board recommendation to broaden impact to include purchase of all types of affordable housing. 534 March 26, 2013 Public Review Draft Affordable Housing Planning and Zoning City Recommendations Board Board Council Recommendations Recommendations Document affordable " dwelling units, buildings, and complexes through current programs administered by the Fort Collins Housing Authority, other non-profit affordable housing agencies, and private developers. 2. Continue to offer relocation No change No Change No change assistance to those residents of affordable units redeveloped with the use of federal, Fort Collins Urban Renewal Authority (FCURA), or other City funds, but do not extend a requirement to pay relocation expenses in private redevelopment projects that do not use public funds. 3. Draft a Manufactured No change Do Not Include Recommen Home Park Zoning Inconsistent with ded District and rezone into Comprehensive Plan Strategy that district those mobile and current zoning remains in home parks- that are criteria — City relatively large and can Council serve as significant document sources of affordable housingfor the long term. 4. Create a loan or grant No change Substitute text to PZBoard program, or use the broaden revised existing. financial recommendation to all text assistance competitive affordable housing included process, that would be types: in City available to finance "Create a loan or Council significant investments it? grant program, or use document mobile home park water, the existing financial sewer, septic, or.road assistance competitive infrastructure that would process, that would be be available to those available to finance larger mobile home parks significant investments —willing to commit to in F1911 March 26, 2013 Public Review Draft ; Affordable Housing Planning and Zoning City Recommendations Board Board Council Recommendations Recommendations Document continuing operation of 5cyticl their mobile home parks or -road new or for a at least 10 years. existinz affordable housing infrastructure that would be available to those larger mobile home parks willing to commit to continuing operation of their mobile home parks for a at least 10 years. 5. Require a one (1) year Recommend substitute No change AHB notice of closure period text to ensure adequate revised for mobile home parks notice of potential text (rather than the 6 month earlier closing included minimum notice required "Require a one year in City by Colorado law). notice of closure period Council However, as an for mobile home parks document alternative, the City could (rather than the 6 month of to allow a six (6) minimum notice month closure notice if the required by the state). park owner delivers to As an alternative, the each resident on or before City could offer to allow the notice date a detailed a six (6) month closure Relocation Report listing notice if the park owner all available mobile home delivers to each resident park spaces available on or before the notice within 25 miles, providing date a detailed the contact information for Relocation Report each of those park owners, listing all available and including documented mobile home spaces estimates of the costs of available within 25 moving miles, providing the mobile/manufactured contact information for homes to those locations. each of those park In addition, the ordinance owners, and including should provide an documented estimates of incentive for the park the costs of moving owner to assist in mobile/manufactured relocation by providing homes to those that park may be closed locations. In addition before the mandatory one the notice provision year notice period has I shall also alert residents 536 March 26, 2013 Public Review Draft Affordable,Housing Planning and Zoning City Recommendations Board Recommendations Board Recommendations Council Document expired if all park that the park may be closed before the residents have been successfully relocated. mandatory notice period all park residents have been successfully relocated to each party's mutual satisfaction. 6. Require that Require that mobile Do not include. Recommen redevelopment projects home park owners or Not the most effective ded pay (a) actual costs of redevelopers pay (a) way to promote Strategy relocating owner occupied actual costs of affordable housing, remains in mobile/manufactured relocating may subsidize City homes to a new site within mobile/manufactured substandard housing, Council a 25 mile radius of the homes to a new site and inappropriately document. mobile home park and (b) within 25 miles of the shifts cost burdens to pay at least a portion of redevelopment site, with mobile home park a maximum relocation the value of units that owners. cost of $6 000 for a cannot be moved. Instead recommend • Note — this applies single -wide unit and impact fee or T1F to only to projects $8, 000 for a double- help cover cost of involving city wide unit. (b) the actual relocation or value of any home (as financial assistance development of determined by the or a discretionary affordable housing. land use decision. County Assessor) that is structurally able to be moved but that cannot be moved due to the unavailability of an spaces within 25 miles. and (c) the actual value of any home (as determined by the County Assessor) that cannot be moved due to structural weakness or poor condition. • Should apply to all applications for redevelopment regardless of city financial involvement 537 March 26, 2013 Public Review Draft- Recommendations Affordable Housing Board Recommendations Planning and Zoning Board Recommendations City . Council Document or land use decision 7. Build the capacity pf No change Recommend revised PZ Board homeowner groups, non- text: revised profit affordable housing "Build the capacity of text providers, and support homeowner groups, included organizations to purchase non-profit affordable in City mobile home parks offered housing providers, and Council for redevelopment and support organizations document manage them as long-term to purchase affordable sources of affordable housing types, housing. includine mobile home parks offered for redevelopment and manage them as long- term sources of affordable housing, " Summary of Significant Differences Recommendation #3 - Create a Mobile Home Park Zoning District and rezone several mobile home parks into the new zone to help preserve them. The Planning and Zoning Board does not support a new mobile *home park zone. The Affordable Housing Board supports the recommendation. Recommendation #6-Require redevelopment projects to pay displacement relocation costs. The Affordable Housing Board supports the recommendation and sets limits as to the amounts of assistance to individual unit owners. The Planning and Zoning Board does not support the recommendation and, instead, suggests establishment ofan impactfee or use of TIF to fund relocation costs and the development of additional affordable housing. PUBLIC OUTREACH The involvement of stakeholder groups, the general public, and City boards and commissions was a very important component of this project. Three key stakeholder groups were identified and have been involved in the project, including: (1) mobile home park property -owners; (2) mobile home park residents (unit owners and renters) and interested citizens and (3) affordable housing and human service agencies (e.g., Fort Collins Housing Authority, Neighbor -to -Neighbor, CARE Housing, The Murphy Center, and Funding Partners). A project websitettp:llwww.fc2ov.com/socialsustainabilitv/Mobilehomeservices.php was established for the dissemination of information; announcement of upcoming public meetings, and collection of public comments. An online survey was available to offer another option for people to provide feedback who were not able to attend the information open house, or may not be able to attend the public hearings. 538 March 26, 2013 Two key City advisory boards have been involved in the process, the Affordable Housing Board, because mobile homes are a low cost, affordable housing component of the community's housing stock, and the Planning and Zoning Board, becausefuture redevelopment ofmobile home parks will likely involve decisions by the Board. Two departments of the Larimer County government were also involved, including the Planning Department and the Environmental Health Department. Stakeholder /Public Meetings Three stakeholder informational meetings were scheduled in September 2012 as part of the first phase of the public process for the project. The three meetings for the specific 'stakeholder groups included: (1) manufactured/mobile home park property -owners; (2) manufactured/mobile home owners, park residents, and interested citizens; and (3) affordable housing and social service agencies. Notes from these initial informational meetings are attached (see Attachment 5). In November 2012, a second set ofstakeholder meetings were conducted to provide a project update and report on the results of the October 23, 2012, City Council work session about how to mitigate the impacts to residents when manufactured/mobile home parks are redeveloped for other uses. Topics covered at the meetings included the following: Mobile Home Park Preservation and Stabilization Techniques o Mobile Home Park Zoning District o Resident Purchase of Mobile Home Parks o Infrastructure Maintenance/Replacement Financial Assistance Notice of Park Closure o Relocation Assistance Requirements o Relocation Report o Payment of Relocation Costs r Notes from these second set of stakeholder meetings are attached (see Attachment 6). Open House On January 24, 2013, an Open House was conducted to present the Public Review Draft of the Affordable Housing Redevelopment Displacement Mitigation Strategy. Printed copies of the draft strategic plan document were available at the open house. The document was also available for viewing on the project's web site. Flyers announcing the open house, as well as the future public hearings by the Affordable Housing Board, the Planning and Zoning Board, and the City Council, were mailed to all 23 mobile home park property -owners and to 3, 600+ residents (unit owners and renters) of mobile home parks, located both inside the City limits and within the Growth Management Area. Flyers were also sent via email to citizens who had attended previous stakeholder meetings and/or who indicated they wished to receive notices ofadditional meetings by submitting their email address on theproject's web page, and to selected staff ofaffordable housing and social service agencies. The open house contained a series of 15 informational boards highlighting the key points of the strategic plan to preserve affordable housing units, including mobile home parks, and the proposed =1 March 26, 2013 requirements for the payment of relocation assistance to displaced residents. Members of the planning team (staff and consultants) were available to answer questions and provide additional information. Approximately 80 people attended the open house. Most attendees were residents of mobile home parks, but a fewpark owners and stafffrom affordable housing agencies also attended. Attendees were encouraged tofill out comment cards or complete the on-line survey using available laptop computers. Survey Results and Selected Public Comments The Public Review Draft of the Affordable Housing Redevelopment Displacement Mitigation Strategy was posted for public review on the project's web site on January 10, 2013. In order to obtain additional detailed feedback on the strategic plan, the planning team organized an on-line survey that was posted on the web site and publicized on January 11, 2012. The survey was not a random sample, statistically valid survey to obtain results that could be equated to being representative of opinions of a larger group of people in the community. Anyone could visit the project's web site and participate in the survey. Public input from the survey and comment cards were integrated and the results are summarized in the Affordable Housing Redevelopment Displacement Mitigation Strategy. " ' Ken Waido, Chief Planner, stated Council will have the option of several strategies to deal with the loss of affordable housing and mobile home parks, the details of which will be formulated in the future. Waido detailed the two components of the plan: options for maintaining or sustaining affordable housing and mobile home parks, and the requirements for relocation mitigation and assistance. He discussed the three strategies presented for preservation or stabilization: a mobile home park district, aiding in funding infrastructure maintenance and replacement for mobile home parks, and resident ownership of mobile home parks. The strategies presented regarding mobile home park closures are as follows: increasing the time of notice of closure from the minimum 6 months required by the State, requiring a relocation report about potential relocation sites to residents, and requiring payment of relocation costs from a redevelopment project. Waido discussed the public outreach process and recommendations to continue to add to the affordable housing stock, continue to offer relocation assistance, draft a mobile home park zone, assist with financial assistance for infrastructure improvements, extend the notice of closure to one year, require the payment of relocation costs, and work with the residents to establish homeowners associations. Eric Sutherland, 3520 Golden Currant, stated tax sharebacks should be used for housing assistance. Patrick Edwards, 1731 Valley Forge, stated residents should not be forced to move from their homes. Zach Heath, 35 South Sunset, discussed au article on rent and supported the adoption of a strategic plan to preserve affordable housing. Tawny Payton, Rocky Mountain Home Association Executive Director, discussed the manufactured home industry and noted it is not subsidized but still supports the need for affordable housing. She opposed the adoption of the strategic plan. March 26, 2013 Dave Bell, Fort Collins resident, stated a one year notice of closure is not long enough and relocation costs should come from the developer. Chris Seifert, AMC, Inc., stated infrastructure upgrades are often not affordable by smaller park owners and stated larger operators will not want to purchase the parks due to cost. Rose Lew, 2014 Westview Road, supported the strategic plan and the Affordable Housing Board recommendations. Melissa Dougherty, American Land Lease, owner of Skyline community, expressed support for affordable housing but expressed concern regarding three of the,recommendations, including the creation of a mobile home zone. Keith Cowan, 400 Hickory Street, owner of Hickory Village Mobile Home Park, opposed the sales tax on mobile homes. Brittan Cook, mobile home park manager, opposed recommendations 3, 5, and 6, particularly the relocation cost issue, as deterrents to growth. Shraka Martin, Fort Collins resident, supported the strategic plan. Sara Cunningham, Skyline community manager, opposed recommendations 3, 5, and 6. Cheryl Distaso, Fort Collins Community Action Network, supported the strategic plan. Christian Hendrickson, Rocky Mountain Home Association counsel, opposed recommendations 3, 5, and 6. Nancy York, 130 South Whitcomb, discussed the juxtaposition between the Woodward business assistance package and affordable housing. She supported the strategic plan. Mayor Weitkunat commended the staff work and report. She asked what determined the final recommendations. Waido replied staff made the decision to bring forward a slightly changed document, though the intent and effect of the recommendation remained unchanged. Mayor Weitkunat requested a staff response to the concerns regarding recommendations 3, 5, and 6. Waido replied there were differences between mobile home park owners and residents and stated the major concerns of residents were lot rent increases and longevity of parks. He stated the rezoning would apply to the largest parks with a high percentage of ownership of units. The rezoning could help stabilize and preserve those parks, though there is no guarantee it may not redevelop in some fashion. The details of potential development of a mobile home zone district would be developed following a Council recommendation to proceed. Shelby Sommer, Clarion and Associates, discussed the one year notice requirement recommendation, which is supported by residents but deemed too long by park owners and managers. She noted a relocation report would decrease that time to as little as 6 months to aid in the concerns of the development community. In terms of relocation costs, Ms. Sommer stated the Affordable Housing Board does support the recommendation; however the Planning and Zoning Board does not. The recommendation is for 541 March 26, 2013 development projects to pay relocation costs if there is City funding assistance and/or if land use approval is sought. Councilmember Troxell asked about the focus on manufactured housing rather than a more broad focus on affordable housing. Waido replied the designated affordable housing component is the top goal of the City's affordable housing strategic plan and the City does provide financial assistance and development incentives to maintain and add to that inventory. Councilmember Troxell expressed concern that recommendations 3, 5, and 6 are counter to affordable housing. He argued the plan should be more forward thinking on other housing types rather than focused on existing developments. Waido replied mobile home residents are often not interested in changing their housing style. Ms. Sommer noted the Planning and Zoning Board recommended applying recommendations 1, 2, 4 and 7 to all types of affordable housing. Councilmember Poppaw noted the contribution from the City in the case of the Bender Mobile Home Park relocation dramatically outweighed the contributions from the developer and land owner. Councilmember Horak asked what the adoption of this Resolution would mean. Waido replied the recommendations would set some broad parameters for strategies to be developed further by staff. Mayor Pro Tem Ohlson asked about the use of tax increment financing. Joe Frank replied the URA legislation allows the use of TIF for relocation and requires the URA to pay expenses in the case of eminent domain: The City's Urban Renewal Authority pays relocation costs. Mayor Pro Tem Ohlson questioned why the developer and land owners are mentioned as paying those costs. Mr. Frank replied few of the mobile home parks are in the Urban Renewal Authority area. Councilmember Horak made a motion, seconded by Councilmember Poppaw, to adopt Resolution 2013-027. Councilmember Horak noted this is a strategic plan to aid in the conscious consideration of affordable housing issues. ' Councilmember Manvel commended staff work on the item and stated this plan is a good first step. Councilmember Poppaw commended staff work on the item and thanked Ms. Distaso for her work on the issue. She stated she would support the motion. Mayor Weitkunat questioned whether or not support of the motion is support of the seven elements as written. For example, she opposed drafting a manufactured home park zone district. Mayor Pro Tem Ohlson stated adoption of this plan would mean development of the recommendations which will then be presented to Council for consideration in the future. 542 March 26, 2013 Councilmember Troxell expressed support for affordable housing but questioned the specificity of the plan with regard to mobile homes. He stated he would support a broader, more systemic plan. Mayor Pro Tern Ohlson stated he would support the motion but noted the Ordinances that would implement the plan are the items which will make a difference. The vote on "the motion was as follows: Yeas: Poppaw, Horak, Manvel and Ohlson. Nays: Weitkunat, Kottwitz and Troxell. THE MOTION CARRIED. Extension of the Meeting Councilmember Manvel made a motion, seconded byMayorPro Tern Ohlson, to extend the meeting to consider the remainder -of the agenda. Yeas: Weitkunat, Manvel, Ohlson and Poppaw. Nays: Kottwitz, Troxell and Horak. THE MOTION CARRIED. Ordinance No. 048, 2013, Amending Chapter 10 of the City Code Relating to Development in the Poudre River Floodplain, Adopted on Second Reading, The following is the staff memorandum for this item. "EXECUTIVE SUMMARY The final component qf the Stormwater Repurposing program is to review the level of regulation protecting life and property for areas within the Poudre River Floodplain. This Ordinance, adopted on First Reading on March 18, 2013 by a vote of5-1 (Nays: Ohlson), revises City Code to establish a "performance -based " criteria and regulation that places more emphasis on life safety through advance warning and evacuation. An effective date of July 1, 2013 has been established so that advance notice can be provided to property owners and applicants for development submittals. The Ordinance contains revised Code language to include an additional.provision described in the staff presentation on First Reading at the March 18, 2013 Council meeting. The provision states that an Emergency Response and Preparedness Plan (ERPP) will not be required in situations where structures orportions ofstructures will be removed from the 100 yearfloodplain and dryland access will be provided through the construction of new improvements associated with a FEMA- approved Conditional Letter of Map Revision in advance of a Letter of- Map Revision or Physical Map Revision pursuant to §10-80(a)(1). " Ken Sampley, Stormwater and Floodplain Manager, stated a provision was added to clarify that the properties who were going to take their development outside of the floodplain would not need an emergency response plan. Additionally, it was determined there are only four residential properties in the City limits and seventy-two properties in the growth management area that are within the floodplain; therefore the staff recommendation is to not require an emergency response plan for those residences. 543 March 26, 2013 Councilmember Horak made a motion, seconded by Councilmember Manvel, to adopt Ordinance No. 048, 2013, on Second Reading. Mayor Pro Tem Ohlson stated he would not support the motion as there was a systemic failure of process and product. The vote on the motion was as follows: Yeas: Weitkunat, Mauve], Kottwitz, Horak and Troxell. Nays: Ohlson and Poppaw. THE MOTION CARRIED. Resolution 2013-028 Making Findings of Fact and Conclusions Regarding the Appeal of the Decision of the Planning and Zoning Board to Approve Sign Modifications for the Foothills Mall Redevelopment Project Development Plan, Adopted The following is the staff memorandum for this item. "EXECUTIVE SUMMARY On February 7, 2013, the Planning and Zoning Board approved three modification of standards requests pertaining to two electronic message center ground signs proposed to be located along the South College Avenue frontage of the Foothills Mall Redevelopment project. On February 21, 2013, Mayor Pro Tem Kelly Ohlson filed a Notice ofAppeal with the City Clerk, appealing the Planning and Zoning Board's approval of the three modifications. On March 19, 2013, City Council took the following actions: Mayor Pro Tem Ohlson, the Appellant, withdrew his appeal of the Planning and Zoning Board's decision to grant a modification to allow two electronic message center signs to exceed fifty percent (50%) of the total area of the sign face (Section 3.8.7(M)(4)(d) of the Land Use Code).. 2. By a vote of 5 - 0, the City Council upheld the Planning and Zoning Board's decision to grant a modification to allow two electronic message center signs along the South College Avenue frontage of the development (Section 3.8.7(M)(4)(h) of the Land Use Code). 3. With regard to the Planning and Zoning Board's decision to grant a modification to allow two electronic message center signs to display messages in full color, the City Council, by a vote of 3 — 2 (Nays: Troxell, Kottwitz), determined that the Planning and Zoning Board failed to properly interpret and apply the relevant provisions of the Land Use Code, the unique hardship standard in particular, and that the Board erred in its determination that the granting of the modification would not be detrimental to the public good. This vote resulted in the City Council overturning the decision of the Planning and Zoning Board to allow f ll color message displays. 4. The City Council modified the approval by the Planning and Zoning Board of the Foothills Mall Redevelopment Project Development Plan by adding a new condition to that approval R March 26, 2013 which requires that electronic message center signs must comply with the manner ofdisplay required by Section 3.8.7(M)4)(c). In order to finalize this appeal process, Council is required to adopt a Resolution making findings of fact and finalizing its decision on the Appeal. BACKGROUND /DISCUSSION J Mayor Pro Tem Ohlson's Notice ofAppeal did not contain any specific grounds for the appeal but did include a general description of the issues to be considered on appeal. The issues centered on the Planning and Zoning Board's approval of modification requests to: Section 3.8.4(M)(4)(c) -Allow two electronic message center signs (a.k.a. digital signs) to display messages in full color rather than in one color; 2. Section 3.8.4(M)(4)(d) - Allow the size of two electronic message center signs to exceed f fty (50%) of the total area of the sign face. Specifically, allow the size of each of the two signs to be sixty four percent (64%) of the total area of the sign. 3. Section 3.8.4(M)(4)(h) - Allow more than one electronic message center signs along the South College Avenuefrontage ofthe development. Specifically, allow two such signs along the frontage, with the signs separated by a distance of 1164 feet. At the March 19, 2013 hearing on the matter, Council considered the testimony of City staff, the applicant, the appellant, and other parties in interest. After consideration of the record and discussion, City Council took the actions described above in the Executive Summary. " Mayor Weitkunat recused herself from the discussion of this item due to a conflict of interest. Councilmember Poppaw recused herself from the discussion of this item as she did not participate in the appeal hearing. Patrick Edwards, 1731 Valley Forge, supported the Resolution. Councilmember Horak made a motion, seconded by Councilmember Manvel, to adopt Resolution 2013-028. Yeas: Horak, Manvel and Ohlson. Nays: Kottwitz and Troxell. THE MOTION CARRIED. Adjournment Mayor Pro Tern Ohlson made a motion, seconded by Councilmember Manvel, to adjourn to 6:00 p.m. on March 27, 2013, so that the Council may consider any additional business that may come before the Council, including a possible Executive Session. Yeas: Weitkunat, Manvel, Kottwitz, Ohlson, Horak and Troxell. Nays: none. THE MOTION CARRIED. 545 March 26, 2013 The,meeting was adjourned at 11:12 p.m. FORTC OF .......... p� A. .! 1• U: SEAL ATTEST: Vv &k1 lK,L9\� City Clerk OR