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HomeMy WebLinkAboutAgenda - Mail Packet - 10/22/2024 - Urban Renewal Authority (URA) Board Meeting Agenda – October 24, 2024City of Fort Collins Page 1 of 2 Urban Renewal Authority Board Agenda October 24, 2024 at 5:00 PM Jeni Arndt, Chair Kristin Stephens, Vice Chair Susan Gutowsky Julie Pignataro Tricia Canonico Melanie Potyondy Kelly Ohlson Emily Francis Kristen Draper Dan Sapienza Matt Schild Council Information Center (CIC) in City Hall, 300 Laporte Ave, Fort Collins, CO and via Zoom at https://zoom.us/j/98687657267 Cablecast on FCTV Channel 14 on Connexion Channel 14 and 881 on Comcast Caitlin Quander Josh Birks Delynn Coldiron URA Attorney Acting Executive Director Secretary URBAN RENEWAL AUTHORITY BOARD MEETING 5:00 PM A) CALL MEETING TO ORDER B) ROLL CALL C) AGENDA REVIEW Executive Director's Review of Agenda. D) PUBLIC PARTICIPATION E) PUBLIC PARTICIPATION FOLLOW-UP F) ADOPTION OF CONSENT CALENDAR G) COMMISSIONER REPORTS H) DISCUSSION ITEMS The method of debate for discussion items is as follows: • Chair introduces the item number and subject; asks if formal presentation will be made by staff • Staff and/or Applicant presentation (optional) • Chair requests public comment on the item (three minute limit for each person) • Board questions of staff on the item • Board motion on the item • Board discussion • Final Board comments • Board vote on the item City of Fort Collins Page 2 of 2 Note: Time limits for individual agenda items may be revised, at the discretion of the Chair, to ensure all have an opportunity to speak. If attending in person, please sign in at the table in the back of the room. The timer will buzz when there are 30 seconds left and the light will turn yellow. It will buzz again at the end of the speaker’s time. 1. Resolution No. 136 Adopting the 2025 Budget for the Fort Collins Urban Renewal Authority. The purpose of this item is to consider adoption of the 2025 budget for the Fort Collins Urban Renewal Authority. Staff submitted two budget offers for the Urban Renewal Authority (URA) as part of the City’s Budgeting for Outcomes (BFO) process earlier in 2024. The first offer covers the costs of performing core functions of the URA. The second offer is for the URA’s debt service payments. Combined, the total original appropriation for the 2025 URA budget would be $4,796,676. After these expenses, both the North College and Prospect South plan areas would generate excess revenues. Staff forecasts $10.7 million in available cash in the North College plan area and $1.6 million in available cash in the Prospect South plan area by the end of 2025.  I) OTHER BUSINESS J) ADJOURNMENT Upon request, the City of Fort Collins will provide language access services for individuals who have limited English proficiency, or auxiliary aids and services for individuals with disabilities, to access City services, programs and activities. Contact 970.221.6515 (V/TDD: Dial 711 for Relay Colorado) for assistance. Please provide 48 hours advance notice when possible. A petición, la Ciudad de Fort Collins proporcionará servicios de acceso a idiomas para personas que no dominan el idioma inglés, o ayudas y servicios auxiliares para personas con discapacidad, para que puedan acceder a los servicios, programas y actividades de la Ciudad. Para asistencia, llame al 970.221.6515 (V/TDD: Marque 711 para Relay Colorado). Por favor proporcione 48 horas de aviso previo cuando sea posible. City of Fort Collins Page 1 of 2 Urban Renewal Authority Board Agenda October 24, 2024 at 5:00 PM Jeni Arndt, Chair Kristin Stephens, Vice Chair Susan Gutowsky Julie Pignataro Tricia Canonico Melanie Potyondy Kelly Ohlson Emily Francis Kristen Draper Dan Sapienza Matt Schild Council Information Center (CIC) in City Hall, 300 Laporte Ave, Fort Collins, CO and via Zoom at https://zoom.us/j/98687657267 Cablecast on FCTV Channel 14 on Connexion Channel 14 and 881 on Comcast Caitlin Quander Josh Birks Delynn Coldiron URA Attorney Acting Executive Director Secretary URBAN RENEWAL AUTHORITY BOARD MEETING 5:00 PM A) CALL MEETING TO ORDER B) ROLL CALL C) AGENDA REVIEW Executive Director's Review of Agenda. D) PUBLIC PARTICIPATION E) PUBLIC PARTICIPATION FOLLOW-UP F) ADOPTION OF CONSENT CALENDAR G) COMMISSIONER REPORTS H) DISCUSSION ITEMS The method of debate for discussion items is as follows: • Chair introduces the item number and subject; asks if formal presentation will be made by staff • Staff and/or Applicant presentation (optional) • Chair requests public comment on the item (three minute limit for each person) • Board questions of staff on the item • Board motion on the item • Board discussion • Final Board comments • Board vote on the item 1 City of Fort Collins Page 2 of 2 Note: Time limits for individual agenda items may be revised, at the discretion of the Chair, to ensure all have an opportunity to speak. If attending in person, please sign in at the table in the back of the room. The timer will buzz when there are 30 seconds left and the light will turn yellow. It will buzz again at the end of the speaker’s time. 1. Resolution No. 136 Adopting the 2025 Budget for the Fort Collins Urban Renewal Authority. The purpose of this item is to consider adoption of the 2025 budget for the Fort Collins Urban Renewal Authority. Staff submitted two budget offers for the Urban Renewal Authority (URA) as part of the City’s Budgeting for Outcomes (BFO) process earlier in 2024. The first offer covers the costs of performing core functions of the URA. The second offer is for the URA’s debt service payments. Combined, the total original appropriation for the 2025 URA budget would be $4,796,676. After these expenses, both the North College and Prospect South plan areas would generate excess revenues. Staff forecasts $10.7 million in available cash in the North College plan area and $1.6 million in available cash in the Prospect South plan area by the end of 2025.  I) OTHER BUSINESS J) ADJOURNMENT Upon request, the City of Fort Collins will provide language access services for individuals who have limited English proficiency, or auxiliary aids and services for individuals with disabilities, to access City services, programs and activities. Contact 970.221.6515 (V/TDD: Dial 711 for Relay Colorado) for assistance. Please provide 48 hours advance notice when possible. A petición, la Ciudad de Fort Collins proporcionará servicios de acceso a idiomas para personas que no dominan el idioma inglés, o ayudas y servicios auxiliares para personas con discapacidad, para que puedan acceder a los servicios, programas y actividades de la Ciudad. Para asistencia, llame al 970.221.6515 (V/TDD: Marque 711 para Relay Colorado). Por favor proporcione 48 horas de aviso previo cuando sea posible. 2 City Council Agenda Item Summary – City of Fort Collins Page 1 of 3 October 24, 2024 AGENDA ITEM SUMMARY Urban Renewal Authority STAFF Andy Smith, Redevelopment Manager Josh Birks, Acting Executive Director SUBJECT Resolution No. 136 Adopting the 2025 Budget for the Fort Collins Urban Renewal Authority. EXECUTIVE SUMMARY The purpose of this item is to consider adoption of the 2025 budget for the Fort Collins Urban Renewal Authority. Staff submitted two budget offers for the Urban Renewal Authority (URA) as part of the City’s Budgeting for Outcomes (BFO) process earlier in 2024. The first offer covers the costs of performing core functions of the URA. The second offer is for the URA’s debt service payments. Combined, the total original appropriation for the 2025 URA budget would be $4,796,676. After these expenses, both the North College and Prospect South plan areas would generate excess revenues. Staff forecasts $10.7 million in available cash in the North College plan area and $1.6 million in available cash in the Prospect South plan area by the end of 2025.  STAFF RECOMMENDATION Staff recommend adoption of the Resolution. BACKGROUND / DISCUSSION The Urban Renewal Authority (URA) participates in the City’s biennial Budgeting for Outcomes (BFO) process when establishing its budget, even though it is technically a separate legal entity. The URA follows a process that incorporates the feedback of all URA Board members while participating in the BFO process. The budget offer consists of two elements: operational costs and debt service. Both elements are ongoing budget offers, meaning they are essential to running the day-to-day operations of the URA. Operational costs cover the costs of staffing, insurance, and retaining legal counsel, amongst other costs. The debt service budget offer covers payments of all outstanding debt for all plan areas. The URA budget, as adopted by its Board, will be incorporated into the City’s budget when it goes up for adoption by City Council in November 2025.  The table below summarizes the amount of money staff seeks for appropriation to fund these budget offers and a comparison to the 2024 budget:    3 Section H, Item 1. City Council Agenda Item Summary – City of Fort Collins Page 2 of 3     Changes in the 2025 URA budget compared to the 2024 budget include:     Reduced property tax TIF revenue and developer repayment for Foothills Mall based on preliminary December 2023 report.    Included additional personnel support and small incremental increases for personnel and anticipated inflationary costs. In addition, includes a one-time supplemental appropriation of $260k for the technical services approved for the physical due diligence/engineering, planning, architecture and owners’ rep expenses as approved by the board in April, 2024.     Both the North College and Prospect South plan areas will generate excess revenues with the current proposed budget. By the end of 2025, North College is anticipated to have nearly $10.4 million in cash available while Prospect South will have close to $1.7 million in cash available. The Foothills Mall plan area passes TIF revenues to the Foothills Metro District, leaving the URA with no excess revenu es to invest in other priorities.        Collections of TIF revenue are on track with estimates for 2024. With the County Assessor reassessing property values in 2021 and the URA collecting property taxes a year in arrears, staff expect stable revenues through 2024. AUTHORITY FINANCIAL IMPACTS See proposed budget, discussion (above), and attachments. COMMITTEE RECOMMENDATION Staff presented the draft budget to the URA Finance Committee on September 12, 2024, and the Finance Committee supported the budget as presented. PUBLIC OUTREACH None. 4 Section H, Item 1. City Council Agenda Item Summary – City of Fort Collins Page 3 of 3 ATTACHMENTS 1. Resolution for Consideration 2. Exhibit A to Resolution 3. Exhibit B to Resolution 4. URA Budget Offers from BART 5. 2025 Revenue Forecast 6. Tax Increment Financing Revenue Year to Date 7. Presentation 5 Section H, Item 1. RESOLUTION NO. 136 OF THE BOARD OF COMMISSIONERS OF THE FORT COLLINS URBAN RENEWAL AUTHORITY ADOPTING THE 2025 BUDGET FOR THE FORT COLLINS URBAN RENEWAL AUTHORITY WHEREAS, the Fort Collins Urban Renewal Authority (the “URA”) was created on January 5, 1982, by City Council's adoption of Resolution 1982-010, which resolution designated the City Council as the URA’s Board of Commissioners (“Board”); and WHEREAS, the URA operates to eliminate blight and prevent the spread of blight within urban renewal areas in accordance with the Colorado Urban Renewal Law, C.R.S. Section 31-25- 101, et seq.; and WHEREAS, the URA currently has four approved urban renewal plan areas that collect tax increment revenues and have annual expenditures, and these are known as the North College District, the Prospect South District, the Foothills District, and the Drake and College District (collectively, the “Districts”); and WHEREAS, the Board has considered a proposed budget for fiscal year 2025 for each of the Districts and it wishes to adopt them as the URA’s fiscal year 2025 budget in accordance with the Local Government Budget Law of Colorado, C.R.S. Section 29-1-101, et seq. (the “Budget Law”); and WHEREAS, attached as Exhibit “A” and incorporated herein is the URA’s fiscal year 2025 budget message for the Districts as required by the Budget Law (the “Budget Message”); and WHEREAS, attached as Exhibit “B” and incorporated herein are the North College District’s 2025 budget statement showing anticipated revenues and proposed expenditures and its comparative budget statement showing beginning and ending fund balances (jointly, the “North College District Budget”); and incorporated herein are the Prospect South District’s 2025 budget statement showing anticipated revenues and proposed expenditures and its comparative budget statement showing and beginning and ending fund balances (jointly, the “Prospect South District Budget”; and incorporated herein are the Foothills District’s 2025 budget statement showing anticipated revenues and proposed expenditures and its comparative budget statement showing beginning and ending fund balances (jointly, the “Foothills District Budget”); and College & Drake District’s 2025 budget statement showing anticipated revenues and proposed expenditures and its comparative budget statement showing beginning and ending fund balances (jointly, the “College and Drake District Budget”) and WHEREAS, the Budget Message, the North College District Budget, the Prospect South District Budget, and the Foothills District Budget shall be collectively referred to as the “2025 URA Budget”. 6 Section H, Item 1. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE FORT COLLINS URBAN RENEWAL AUTHORITY as follows: Section 1. That the Board hereby makes and adopts the determinations and findings contained in the recitals set forth above. Section 2. That the 2025 URA Budget is hereby approved and the revenue amounts stated therein are appropriated for expenditure as stated in the 2025 URA Budget. Section 3. That the Chief Financial Officer of the City, ex officio the Financial Officer of the URA, is hereby directed to file a certified copy of the 2025 URA Budget with the office of the Division of Local Government, Department of Local Affairs, State of Colorado as required by the Budget Law. Passed and adopted at a regular meeting of the Board of Commissioners of the Fort Collins Urban Renewal Authority this 24th day of October A.D. 2024. ____________________________________ Chair ATTEST: _________________________________ Secretary 7 Section H, Item 1. EXHIBIT A to RESOLUTION NO. 136 Fort Collins Urban Renewal Authority (URA) Budget Message Fiscal Year 2025 Budget Budget Features The URA’s 2025 budget is comprised of the budgets for the URA’s current plan areas and associated districts, known as the North College District, the Prospect South District, the Foothills District, and the Drake & College District. The budget includes revenues from property and sales tax increment (where applicable), interest earned on investments, and expenses which include general operations, project obligations and debt service payments. The URA aims to deliver services which achieve the objectives specified by the individual urban renewal plans for each of the four districts. These include: To facilitate redevelopment and new development by private enterprise through cooperation among developers and public agencies to plan, design, and build needed improvements To address and remedy conditions in the area that impair or arrest the sound growth of the City To implement the City’s Comprehensive Plan and its related elements To redevelop and rehabilitate the plan area in a manner which is compatible with and complementary to unique circumstances in the area To effectively utilize undeveloped and underdeveloped land To improve pedestrian, bicycle, and vehicular circulation and safety To ultimately contribute to increased revenues for all taxing entities To encourage the voluntary rehabilitation of buildings, improvements and conditions To facilitate the enforcement of the laws and regulations applicable to the plan area To watch for market and/or project opportunities to eliminate blight, and when such opportunities exist, to act within the financial, legal and political limits of the URA to acquire land, demolish and remove structures, provide relocation benefits, and pursue redevelopment, improvement, and rehabilitation projects. 13 Section H, Item 2. EXHIBIT A Summary of the Adopted 2025 URA Budgets North College URA 1) Tax Increment Collections in 2025 are based on the December 2023 certification of the 2023 property tax (that will be collected in 2024). Collections are expected to remain flat between 2024 to 2025. 8 Section H, Item 1. EXHIBIT A to RESOLUTION NO. 136 2) The Larimer County Fee 2% of tax collections remitted to the County. The 2024 budget is based on the December 2023 certification of the 2023 property tax (that will be collected in 2024) and will remain flat. 3) Operating expenses are budgeted slightly higher in 2025 due to increase in personnel costs, inflationary increases in consulting and legal services and a one-time $260k appropriation for website and real estate work approved in April 2024 by the URA Board. 4) The Lyric redevelopment agreement will require an estimated $20k in payments in 2025. Feeders Supply agreement will require an estimated $6k in payments in 2025. Prospect South URA 1) Tax Increment Collections in 2025 are based on the December 2023 certification of the 2023 property tax (that will be collected in 2024). Collections are estimated to be flat or slightly increased over 2023 actual collections. 2) The Larimer County Fee 2% of tax collections remitted to the County. The 2024 budget is based on the August 2023 certification of the 2023 property tax (that will be collected in 2024). 3) The Prospect South General Operations expense is an estimate of staff time and other expenses attributable to the URA which will be reimbursed to the North College URA annually. Foothills Mall URA 1) Tax Increment Collections in 2024 are based on the December 2023 certification of the 2023 property tax (that will be collected in 2024) with a projected a -27% decrease in TIF revenue for 2024. 2) Sales Tax Increment Collections for 2023 were $807,962. The 2025 Budget is somewhat conservative at $450,000 due to the Macy’s vacancy since 2022 and decreasing revenues noted YTD in 2024. 3) The City keeps 1.5% of the Property Tax increment for administrative costs which will be reimbursed to the North College URA annually. Drake & College District URA 1) Property tax increments collections are forecasted at 0.00 for each year based on the December 2023 TIF Warrant (to be collected in 2024). Collections to date are less than $5k and there are no expenses anticipated for this URA in 2025. Budgetary Basis of Accounting The URA budget and fund financial statements are prepared on the modified accrual basis of accounting. 9 Section H, Item 1. 2022 Actual 2023 Actual 2024 Budget 2025 Budget Request 2024-2025 $ Budget 2024-2025 Property Tax Increment Collections $3,039,356 $3,269,641 $4,160,041 $4,160,041 $0 0% Interest on Investments (140,696)314,229 16,000 16,000 $0 0% Total Revenue $2,898,660 $3,583,870 $4,176,041 $4,176,041 $0 0% Expenses: General Operations/Admin $260,084 $103,049 $316,694 $337,852 $21,158 7% One-Time Project Supplement $180,000 $260,000 $80,000 44% Larimer County Fee 60,787 65,393 83,201 84,865 $1,664 2% Developer Payment 9,939 17,909 19,000 26,792 $7,792 41% Operational Costs $330,810 $186,351 $598,895 $709,509 $110,614 18% Principal $690,000 $715,000 $745,000 $775,000 $30,000 4% Interest 257,363 229,763 201,163 171,363 ($29,800)-15% Debt Service Costs $947,363 $944,763 $946,163 $946,363 $201 0% Principal $295,781 $311,884 $319,681 $26,913 ($292,768)-92% Interest 24,047 16,594 8,665 678 ($7,987)-92% Debt Service Costs $319,828 $328,478 $328,346 $27,591 ($300,755)-92% Total Expense $1,598,001 $1,459,592 $1,873,404 $1,683,463 ($189,941)-10% Net Change in Fund Balance $1,300,659 $2,124,279 $2,302,638 $2,492,578 Prior Year Fund Balance $3,214,796 $4,515,455 $6,639,733 $8,942,371 Current Year Projected Fund Balance $4,515,455 $6,639,733 $8,942,371 $11,434,949 Notes 2024 Property Tax based was based originally on the 2022 TIF Warrant with an inflation value applied. Increment was increased by $1,268k to reflect the values in the December, 2023 report.   Outstanding debt at the end of:2025 Market Bonds $3,425,000 RMI2 GF Debt $0 URBAN RENEWAL AUTHORITY NORTH COLLEGE DISTRICT 2024-2025 BUDGET REQUEST EXHIBIT B TO RESOLUTION NO. 136 10 Section H, Item 1. 2022 Actual 2023 Actual 2024 Budget 2025 Budget Request 2024-2025 $ Budget 2024-2025 Property Tax Increment Collections $689,385 $710,453 $704,000 $846,738 $142,738 20% Interest on Investments (35,789)81,266 0 0 $0 0% Total Revenue $653,596 $791,719 $704,000 $846,738 $142,738 20% Expenses: General Operations/Admin $37,890 $46,425 $158,417 $133,475 ($24,942)-16% One-Time Appropriation $275,000 $0 ($275,000)-100% Larimer County Fee 13,788 14,209 14,500 16,935 $2,435 17% Developer Payment 11,762 11,762 12,000 11,762 ($238)-2% Operational Costs $63,440 $72,396 $459,917 $162,172 ($297,745)-65% Principal $230,000 $240,000 $250,000 $265,000 $15,000 6% Interest 138,544 127,044 115,044 102,544 ($12,500)-11% Debt Service Costs $368,544 $367,044 $365,044 $367,544 $2,500 1% Total Expense $431,984 $439,440 $824,961 $529,716 $385,521 47% Net Change in Fund Balance $221,612 $352,279 ($120,961)$317,022 Prior Year Fund Balance $1,300,586 $1,522,198 $1,874,477 $1,753,516 Current Year Projected Fund Balance $1,522,198 $1,874,477 $1,753,516 $2,070,538 Notes 2024 Property Tax based was based originally on the 2022 TIF Warrant with an inflation value applied. Outstanding debt at the end of:2025 URBAN RENEWAL AUTHORITY PROSPECT SOUTH DISTRICT 2024-2025 BUDGET REQUEST EXHIBIT B TO RESOLUTION NO. 136 11 Section H, Item 1. 2022 Actual 2023 Actual 2024 Budget 2025 Budget Budget 2024-2025 Property Tax Increment Collections $3,327,492 $3,386,284 $2,486,621 $2,470,595 -$16,026 -1% Sales Tax Increment $661,753 $807,962 $600,000 $450,000 -$150,000 -25% Interest on Investments $6,913 $2,555 $0 $0 $0 Total Revenue for the URA $3,996,158 $4,196,801 $3,086,621 $2,920,595 -$166,026 -5% Expenses: General Operations/Admin $42,882 $49,912 $72,000 $57,059 ($14,941)-21% Larimer County Fee 66,550 67,726 68,000 49,412 ($18,588)-27% Operational Costs $109,432 $117,638 $140,000 $106,471 ($33,529)-24% Developer Payment $3,869,732 $4,080,790 2,930,864 2,865,446 (65,418) -2% Total Expense $3,979,164 $4,198,428 $3,070,864 $2,971,917 ($98,947)-3% Net Change in Fund Balance $16,994 ($1,627)$15,757 ($51,322) Prior Year Fund Balance $2,439 $19,433 $17,806 $33,563 Current Year Projected Fund Balance $19,433 $17,806 $33,563 ($17,759) Notes 2025 property tax based was based on Aug 2023 assessment report 2025 sales tax increment reduced based on the departure of Macy's from the mall as well as additional store closures  is anticipated and is reflective of interest earned (see Foothills detail) 2025 budget request for developer sales tax payments accidentaly ommitted; anticipate reduction in URBAN RENEWAL AUTHORITY FOOTHILLS MALL DISTRICT 2024-2025 BUDGET REQUEST EXHIBIT B TO RESOLUTION NO. 136 12 Section H, Item 1. 2022 Actual 2023 Actual 2024 Budget 2025 Budget Budget 2024-2025 Property Tax Increment Collections $1,503 $1,523 $0 $0 $0 0% Sales Tax Increment 0 0 0 0 0 0% Interest on Investments 0 0 0 0 0 Total Revenue for the URA $1,503 $1,523 $0 $0 $0 0% Expenses: General Operations/Admin $0 $30 $0 $0 $0 0% Larimer County Fee 30 0 0 0 0 0% Operational Costs $30 $30 $0 $0 $0 0% Developer Payment $0 $0 $0 $0 $0 0% Total Expense $30 $30 $0 $0 $0 0% Net Change in Fund Balance $1,473 $1,493 $0 $0 $0 Prior Year Fund Balance $1,637 $3,110 Current Year Projected Fund Balance $3,110 $4,603 Notes 2024 Property Tax estimate based on assessment dated December 2023 URBAN RENEWAL AUTHORITY College & Drake 2024-2025 BUDGET REQUEST EXHIBIT B TO RESOLUTION NO. 136 13 Section H, Item 1. City of Fort Collins 2025 - 2026 Offer Narratives Economic Health Offer 45.1: Urban Renewal Authority Offer Type: Ongoing 2026: $726,400 and 2.14 FTE (excluding hourly staffing) 2025: $978,152 and 2.14 FTE (excluding hourly staffing) Funding This Offer Will: Funding this offer will authorize the Urban Renewal Authority (URA) to fund administrative operations and program management activities using existing URA revenue streams. Offer Summary This offer funds Urban Renewal Authority (URA) administration and operations. The URA brings together local tax collecting organizations to collaborate and remediate blight to create a better community for everyone. The URA currently has four active tax increment financing (TIF) districts. The URA program makes important contributions to the City’s vibrancy with an emphasis on triple-bottom line benefits and placemaking. URA’s revitalization objectives include: • Create vibrant neighborhoods • Support projects that achieve objectives outlined in Community Investment Plans • Catalyze projects and accelerate investments that would not otherwise happen, thereby creating improvements with lasting value • Encourage development projects that enhance local character, culture, economy and quality of life • Improve public infrastructure (streets, storm drainage, sewer, utilities, etc.) in areas where deficiencies exist • Incentivize high efficiency buildings and development projects in support of Our Climate Future • Retain, expand and attract businesses for the purpose of improving the City’s economic base as demonstrated by projects that retain/create jobs, increase the manufacturing base, etc. • Create destination locations, including mixed-use projects, that will capture additional revenue to the area • Support a spectrum of housing affordability options • Protect natural habitats and features • Remove impediments to desired development • Encourage development that is consistent with City Plan, subarea plans and approved Urban Renewal Plans • Create, accelerate and enhance projects that meet broader community objectives, including those of taxing entities The URA is not dependent on the General Fund; funding comes from incremental property and sales tax revenues resulting from new activity enabled and catalyzed by URA investments. Data As Of: 10/10/24 at 11:5 Page 1 of 82.2.03 Offer Detail by Outcome - 45.1: Urban Renewal Authority 14 Section H, Item 1. Economic Health Offer 45.1: Urban Renewal Authority Offer Type: Ongoing This Offer supports the following Strategic Objectives (the primary objective is marked with a ü): ECON - 24/7/365 Operational Excellenceü NCV 1 - Increase housing supply, type, choice and affordability to address inequities in housing so that everyone has healthy, stable housing they can afford NCV 4 - Remove obstacles to build interconnected Neighborhood Centers to accelerate progress toward our goal for everyone to have the daily goods and services they need and want available within a 15-minute walk or bike ride from their home Additional Information Existing Areas: (1) North College - centered on College Avenue from Vine Drive north to the City boundary and 1/4 mile either side of College; (2) Prospect South - centered on College Avenue from Prospect Road south to just north of Whole Foods and east/west to encompass the commercial development; (3) Foothills - Encompasses the mall property and some public right-of-way Existing Areas, continued: (4) College and Drake – contains Spradley Barr Mazda and former Kmart sites along with the intersections of College and Drake, Drake and railroad tracks, and Drake and Redwing. We use GARE's equitable development framework as a way to assess and frame the URA's investments. This helps us ensure we invest in projects and programs that further our goals around equity and inclusion within our plan areas. We are building a data dashboard that will track demographics, investment, property values, and other indicators to help us ensure our actions yield more equitable outcomes For the North College plan area, we have been working with the Latino/Latinx community on developing a community hub that would provide resources to the whole community but with a particular emphasis on the Latino/Latinx community. Spanish is the default language in these meetings rather than English. Our communications are also in Spanish by default. A supplemental appropriation of $260,000 was added in 2025 for the additional technical services approved for the physical due diligence/engineering, planning, architecture and Owners rep expenses as outlined in the April 2024 Board Packet. Links to Further Details: https://www.renewfortcollins.com/ Linkage to Strategic Objectives (the primary objective is marked with a ü) Data As Of: 10/10/24 at 11:5 Page 2 of 82.2.03 Offer Detail by Outcome - 45.1: Urban Renewal Authority 15 Section H, Item 1. Economic Health Offer 45.1: Urban Renewal Authority Offer Type: Ongoing ECON - 24/7/365 Operational Excellence: The URA manages four existing Tax Increment Districts including North College, Prospect South, Foothills, and College and Drake. URA staff implements policy objectives of the URA Board and ensures adherence to applicable laws and by-laws. This offer provides the necessary support to ensure ongoing business operations and legal compliance. Thus, the offer supports ongoing operational excellence. ü NCV 1 - Increase housing supply, type, choice and affordability to address inequities in housing so that everyone has healthy, stable housing they can afford: A strategic priority of the 2024 URA Workplan is “Proactive Promotion of Affordable Housing” in URA plan areas. Using the unique tools available to the URA, and working with key partners, the URA will promote the development of new affordable housing dwelling units in its projects and plan areas whenever possible. NCV 4 - Remove obstacles to build interconnected Neighborhood Centers to accelerate progress toward our goal for everyone to have the daily goods and services they need and want available within a 15-minute walk or bike ride from their home: URA projects present exciting opportunities to work with partners to reimagine and revitalize neighborhood centers adjacent to key transportation corridors. By leveraging City resources and plans, conducting market studies, and promoting mixed-use neighborhoods, the URA can help catalyze epicenters of new 15-minute neighborhoods that are walkable, bikeable, and transit-oriented. Improvements & Efficiencies The URA has worked with the Stormwater and Engineering Departments to identify a unified approach to managing stormwater detention and water quality on the west side of College Avenue in the North College Plan Area with an outfall into the Poudre River. These stormwater facilities will be integrated with an ultimate alignment and design for Mason Street from Willox to Alpine. The URA Board has adopted investment plans for the North College and Prospect South plan areas. These plans provide greater clarity on the types of projects the Authority intends to support. These investment plans utilize the GARE Equitable Development Framework as their basis supported by a series of metrics and indicators. This will help ensure the URA advances equity for all. The URA adopted its first Strategic Plan in 2020. The Strategic Plan establishes how the Urban Renewal AuthorityURA supports redevelopment while also supporting the communities in which it operates. The Strategic Plan has a series of guiding principles and tactics that form much of the framework of the 2024 URA Workplan, and may be updated by the Board in late 2024 or early 2025. URA staff presented a 2024 Workplan for the URA Board to consider and endorse. The Workplan prioritizes potential activities based on three broad categories: committed, conditional, and discretionary. The workplan is informed by the updated City Council Strategic Plan, the URA Strategic Plan, emerging opportunities, ongoing commitments, and operational capacity. Data As Of: 10/10/24 at 11:5 Page 3 of 82.2.03 Offer Detail by Outcome - 45.1: Urban Renewal Authority 16 Section H, Item 1. Economic Health Offer 45.1: Urban Renewal Authority Offer Type: Ongoing As the URA considers potential new plan areas and new projects within existing plan areas, URA staff will develop evaluation criteria to help the URA Board make decisions. The establishment of such evaluation criteria is a task identified in both the URA Strategic Plan and the 2024 URA Workplan. The URA continues to pursue the potential acquisition of the former Albertson's site on North College Ave. The site has been the focus of community engagement and visioning efforts and will likely include a community hub led by Latinx stakeholders, affordable housing, and possibly a mix of other uses that remain to be determined. The URA will form and lead an ad hoc interdepartmental “URA Technical Advisory Team” to identify opportunities to coordinate and leverage City plans and projects in existing or future Plan Areas. Potential opportunities include better or faster infrastructure investments and advancement of policy objectives described in key City planning documents. Performance Metrics -NLSH 3. Affordable Housing Inventory https://publish.clearpointstrategy.com/594/Measures/object=measure&objectId=91486.html Performance Measure Reason: A strategic priority of the 2024 URA Workplan is “Proactive Promotion of Affordable Housing” in URA plan areas. Using the unique tools available to the URA, and working with key partners, the URA will promote the development of new affordable housing dwelling units in its projects and plan areas whenever possible. Differences from Prior Budget Cycles Not applicable- Explanation of Any Adjustments to Personnel Costs using object 519999 Not applicable Offer Profile Offer Owner: WBricher Lead Department: Urban Renewal Authority Financial Lead: wbricher Data As Of: 10/10/24 at 11:5 Page 4 of 82.2.03 Offer Detail by Outcome - 45.1: Urban Renewal Authority 17 Section H, Item 1. Economic Health 2025 Projected Budget 2026 Projected Budget 45.1: Urban Renewal Authority 2025 to 2026 Change Ongoing Programs and Services Offer Type: Ongoing Full Time Equivalent (FTE) Staffing 2.14 2.14 - % Expenses 242,848 235,774 3.0% 67,817 65,272 3.9% (20,193)(19,568) 3.2% 290,472 281,478 510000 - Personnel Services 3.2% 373,445 635,710 -41.3% 500 500 - % 373,945 636,210 520000 - Purchased Prof & Tech Services -41.2% 40,073 38,554 3.9% 40,073 38,554 530000 - Purchased Property Services 3.9% 12,000 12,000 - % 660 660 - % 3,000 3,000 - % 1,500 1,500 - % 17,160 17,160 540000 - Other Purchased Services - % 2,500 2,500 - % 2,250 2,250 - % 4,750 4,750 550000 - Supplies - % 726,400 978,152 Total Expenses -25.7% Funding Sources 800-URA N. College District: Ongoing Revenue Ongoing Restricted 978,152 726,400 -25.7% 726,400 978,152 Funding Source Total -25.7% Data As Of: 10/10/24 at 11:5 Page 5 of 82.2.03 Offer Detail by Outcome - 45.1: Urban Renewal Authority 18 Section H, Item 1. Economic Health Offer 45.2: Urban Renewal Authority Debt Service Offer Type: Ongoing 2026: $4,056,573 and 0.00 FTE (excluding hourly staffing) 2025: $4,206,944 and 0.00 FTE (excluding hourly staffing) Funding This Offer Will: Funding this offer will allow the Urban Renewal Authority (URA) to continue servicing key financial obligations that were previously authorized, such as bond and loan payments. Offer Summary This offer funds the payment of Urban Renewal Authority (URA) debt and obligation payments across three tax increment financing (TIF) districts. The College and Drake URA does not have obligation payments, since it was established in 2020. These debts and obligations include bond payments (North College and Foothills Mall), Redevelopment/Project Agreements, and City loan agreements. The URAs issue debt to help finance various development projects in the URA districts, such as the King Sooper Marketplace and The Lyric in the North College URA. The debt service expense is paid for by the tax increment revenue collected by the URA districts over the life of the URA (30 years). The URA uses tax increment funding for all debt and obligation payments; the URA is not dependent on the General Fund. (the primary objective is marked with a ü): ECON - 24/7/365 Operational Excellenceü NCV 4 - Remove obstacles to build interconnected Neighborhood Centers to accelerate progress toward our goal for everyone to have the daily goods and services they need and want available within a 15-minute walk or bike ride from their home NCV 1 - Increase housing supply, type, choice and affordability to address inequities in housing so that everyone has healthy, stable housing they can afford Additional Information This offer allows the URA to service debt and is, therefore, linked to the ongoing operations of the URA in terms of addressing equity. Please see the ongoing offer for the URA program for more information about how the URA has adjusted its operations to better address equity. Links to Further Details: https://www.renewfortcollins.com/ Linkage to Strategic Objectives (the primary objective is marked with a ü) Data As Of: 10/10/24 at 11:5 Page 6 of 82.2.03 Offer Detail by Outcome - 45.2: Urban Renewal Authority Debt Service 19 Section H, Item 1. Economic Health Offer 45.2: Urban Renewal Authority Debt Service Offer Type: Ongoing ECON - 24/7/365 Operational Excellence: The URA manages four existing Tax Increment Districts including North College, Prospect South, Foothills, and College and Drake. URA staff manages financial commitments made by the URA to ensure transparency and adherence to legal agreements, applicable laws, and financial standards. This offer provides the necessary support to ensure financial obligations are satisfied. T ü NCV 4 - Remove obstacles to build interconnected Neighborhood Centers to accelerate progress toward our goal for everyone to have the daily goods and services they need and want available within a 15-minute walk or bike ride from their home: URA projects present exciting opportunities to work with partners to reimagine and revitalize neighborhood centers adjacent to key transportation corridors. By leveraging City resources and plans, conducting market studies, and promoting mixed-use neighborhoods, the URA can help catalyze epicenters of new 15-minute neighborhoods that are walkable, bikeable, and transit-oriented. NCV 1 - Increase housing supply, type, choice and affordability to address inequities in housing so that everyone has healthy, stable housing they can afford: A strategic priority of the 2024 URA Workplan is “Proactive Promotion of Affordable Housing” in URA plan areas. Using the unique tools available to the URA, and working with key partners, the URA will promote the development of new affordable housing dwelling units in its projects and plan areas whenever possible. Improvements & Efficiencies N/A Performance Metrics -NLSH 3. Affordable Housing Inventory https://publish.clearpointstrategy.com/594/Measures/object=measure&objectId=91486.html Performance Measure Reason: A strategic priority of the 2024 URA Workplan is “Proactive Promotion of Affordable Housing” in URA plan areas. Using the unique tools available to the URA, and working with key partners, the URA will promote the development of new affordable housing dwelling units in its projects and plan areas whenever possible. Differences from Prior Budget Cycles Not applicable- Explanation of Any Adjustments to Personnel Costs using object 519999 Not applicable Offer Profile Offer Owner: WBricher Lead Department: Urban Renewal Authority Financial Lead: wbricher Data As Of: 10/10/24 at 11:5 Page 7 of 82.2.03 Offer Detail by Outcome - 45.2: Urban Renewal Authority Debt Service 20 Section H, Item 1. Economic Health 2025 Projected Budget 2026 Projected Budget 45.2: Urban Renewal Authority Debt Service 2025 to 2026 Change Ongoing Programs and Services Offer Type: Ongoing Full Time Equivalent (FTE) Staffing - - - % Expenses 2,741,916 2,865,446 -4.3% 2,741,916 2,865,446 530000 - Purchased Property Services -4.3% 1,314,657 1,341,498 -2.0% 1,314,657 1,341,498 580000 - Debt & Other Uses -2.0% 4,056,573 4,206,944 Total Expenses -3.6% Funding Sources 800-URA N. College District: Ongoing Revenue Ongoing Restricted 4,206,944 4,056,573 -3.6% 4,056,573 4,206,944 Funding Source Total -3.6% Data As Of: 10/10/24 at 11:5 Page 8 of 82.2.03 Offer Detail by Outcome - 45.2: Urban Renewal Authority Debt Service 21 Section H, Item 1. 22 Section H, Item 1. 23 Section H, Item 1. 24 Section H, Item 1. Tax District Forecast 2024- 2030 (7 years) Poudre R-1 School District $16,831,043 58.3%$17,520,628 $34,351,671 Larimer County $6,981,536 24.2%$7,267,576 $14,249,112 City of Fort Collins $3,074,461 10.7%$3,200,425 $6,274,887 Health District of N. Lar Co.$680,041 2.4%$707,903 $1,387,943 Lar Co. Pest Control $41,276 0.1%$42,967 $84,242 Poudre River Public Library District $944,432 3.3%$983,126 $1,927,558 N CO Water Conservancy District $313,817 1.1%$326,674 $640,491 Tax District Forecast 2024- 2037 (14 years) Poudre R-1 School District $3,606,043 58.5%$6,257,575 $9,863,618 Larimer County $1,484,172 24.1%$2,575,488 $4,059,661 City of Fort Collins $654,687 10.6%$1,136,081 $1,790,768 Health District of N. Lar Co.$144,810 2.3%$251,290 $396,100 Lar Co. Pest Control $8,825 0.1%$15,313 $24,138 Poudre River Public Library District $201,172 3.3%$349,094 $550,266 N CO Water Conservancy District $66,825 1.1%$115,962 $182,787 25 Section H, Item 1. October 24, 2024 2025 URA Budget 26 Section H, Item 1. URA Core Offer 2025 Ongoing Programs and Services Funding Source 27 Section H, Item 1. URA Debt Service Offer 2025 Debt Service Payments Funding Source 28 Section H, Item 1. North College URA •Developer Repayments o The Lyric budget includes repayments of $20,754 based on their agreement. o Feeders Supply budget includes repayments of $6,038 per their agreement. •Other Expense (Admin Budget to be split one-year in arrears) o Operating expenses are budgeted slightly higher in 2025 due to minimal annual increases in personnel costs and anticipated inflationary costs. o A one-time supplemental appropriation of 260,000 was included and approved by the Board in April, 2024. Changes to 2025 Budget 29 Section H, Item 1. Prospect South URA •No significant expense changes in 2025. Foothills Mall URA •Reduction in Developer Repayment due to decreased Property Tax TIF to be collected and anticipated reduction in sales tax increment due to departure of Macy’s in 2022. Changes to 2025 Budget 30 Section H, Item 1. URA Operating Expense History General Operating Expenses: •Salaries & Benefits •Office-related expenses Professional & Technical Services Expenses: •Banking Fees •Consulting Services •Larimer County Fees •Legal Services/Insurance •2014 –Foothills Mall URA reimbursable expenses paid to developer. •2017-2019 –EPS consulting services for Drake & College URA analysis. •2017 forward –Increase in Larimer County fees as Foothills Mall URA starts generating TIF. •2019 –Consulting, legal and banking fees related to Prospect South URA refinancing. •2019 forward –Utilization of non-City legal representation for URA. •2019 forward –Purchase of non-City liability insurance for the URA. •2020 –North College URA outreach and visioning expenses. •2024-25 –One-time supplemental appropriation of $260k for web upgrades and property work approved in April 2024. 31 Section H, Item 1. 2025 Cashflow Forecast 732 Section H, Item 1. Property Assessment Increment Through 2023 Assessments 33 Section H, Item 1. Tax Increment Collections Through 2023 34 Section H, Item 1. Questions? Conclusion 35 Section H, Item 1.