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HomeMy WebLinkAboutMemo - Read Before Packet - 10/14/2025 - Updated Agenda Item #2 – Southeast Community Center – October 14, 2025City Council Work Session Agenda Item Summary – City of Fort Collins Page 1 of 7 October 14, 2025 WORK SESSION AGENDA ITEM SUMMARY City Council STAFF LeAnn Williams, Director, Recreation Dean Klingner, Community Services Director SUBJECT FOR DISCUSSION Southeast Community Center EXECUTIVE SUMMARY The purpose of this item is to provide an update on the Southeast Community Center (SECC), including the current project scope, budget, proposed funding stack with trade-offs, and next steps. More than a decade in the making, the SECC will provide southeast Fort Collins with a community recreation center and library, implemented in partnership with Poudre Libraries and Poudre School District as the final standalone project of the 2015 Community Capital Improvement Program tax initiative. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED 1. What feedback do you have for the options presented? 2. What option would Council like to see come forward for appropriation in November, and are there any additional adjustments needed? BACKGROUND / DISCUSSION Project Background The Southeast Community Center (SECC) project represents more than 11 years of planning and development, beginning with the completion of a 2013 feasibility study and continuing through today. Due to the volume of supporting materials, this Agenda Item Summary provides a high-level overview of key milestones rather than a comprehensive history.  October 2013: The City completed the Fort Collins Southeast Community Recreation & Arts Center – Summary of Needs and Development Plan. This study established the original concept for a facility in southeast Fort Collins; however, it no longer reflects current community needs.  April 2015: Voters approved the Community Capital Improvement Program (CCIP) ¼-cent sales tax, which included funding for a “Southeast Community Center and Outdoor Pool.” The ballot language envisioned a facility emphasizing innovation, technology, art, recreation, and the creative Page 40 Item 2. City Council Work Session Agenda Item Summary – City of Fort Collins Page 2 of 7 process, including an outdoor leisure pool with slides, sprays, jets, decks, a lazy river, and open swim areas.  January 2021: City Council adopted ReCreate, the Parks and Recreation Master Plan, which serves as the guiding document for parks and recreation policy and investment. The plan affirmed the need for a Southeast Community Center.  2022: At Council’s request, the City completed an Aquatics Study to assess demand and opportunities for public aquatic facilities in Fort Collins. That same year, City Council held two work sessions and a Council Finance Committee discussion focused on the SECC project. While no formal decisions were made, these discussions directed staff to continue exploring partnerships with the Poudre River Public Library District (Poudre Libraries) and Poudre School District (PSD) and to consider an expanded facility that could be phased or supported by future funding sources.  November 2023: Voters approved the 2050 ½-cent sales tax with ballot language allocating “50% for the replacement, upgrade, maintenance, and accessibility of parks facilities and for the replacement and construction of indoor and outdoor recreation and pool facilities.”  2023–2024: The City budget included funds for project development and design. Staff began active work on this phase in the first quarter of 2024.  February 2024: IGA executed between City, Poudre Libraries and PSD.  February 6, 2025: Staff presented four facility scope and budget options, along with a proposed “funding stack,” to the Council Finance Committee. The Committee recommended advancing Option 2B to the full Council. This option aligned with staff’s recommendation as it: o Met the intent of the 2015 CCIP ballot measure. o Fulfilled partnership commitments with Poudre Libraries and PSD. o Could be fully funded through identified sources. o Met the ReCreate Master Plan level of service for a community center; and o Was comparable in size and amenities to the City’s other community centers while addressing the identified service gap in southeast Fort Collins.  February 25, 2025: Staff presented the four facility options and funding stack at a City Council Work Session. Council expressed support for proceeding with the scope and budget of Facility Option 2B.  Option 2B and the proposed funding stack presented in February 2025 are included. Page 41 Item 2. City Council Work Session Agenda Item Summary – City of Fort Collins Page 3 of 7 Work Since February 2025 Significant progress has been made over the past seven months as the Southeast Community Center project has advanced from concept to schematic design. Key milestones include:  Schematic Design (30% Completion): Achieved September 2025.  Major Amendment and Site Plan: Prepared and ready for Development Review submission.  Community Engagement: Ongoing engagement has continued to inform design and programming decisions. The design team, Clark & Enersen, and the pre-construction team, GH Phipps, presented the schematic design (SD) scope and budget in early September 2025. At that time, the total estimated project cost for the City exceeded the February range by approximately $13 million. Bond against 2050 Tax Bond Proceeds $27 $36 $43 2050 Tax Reserves $10 $10 $12 CCIP Appropriated $18 $18 $18 CCIP Reserves $12 $12 $12 DOLA Grant $2 $2 $2 Recreation Reserves $1 $2 $3 Total City Funding for SECC $70 $80 $90 % of 2050 Parks & Recreation Share 13%17%20% Bond Years 20 20 20 Bond Rate 5.0%5.0%5.0% Net Taxable Growth Rate 2.5%2.5%2.5% Potential Funding Scenarios ($ in M illions) Assumptions Page 42 Item 2. City Council Work Session Agenda Item Summary – City of Fort Collins Page 4 of 7 In response, City staff collaborated closely with the project team to refine the scope and identify cost - reduction strategies that would bring the project back within the February budget range while maintaining alignment with the original program intent. These refinements were guided by community feedback, ballot language, partnership commitments, the Aquatics Study, the Parks & Recreation Master Plan (ReCreate), revenue generation and current and projected program space needs. Staff will be discussing the balancing of competing priorities.  Maximize Project Goals o Community Benefit/Ballot and Plan Guidance o Health and Well-Being, Access & Equity, Sustainable  Maximize 2050 dollars available for future Mulberry Pool Replacement facility  Preserve other future options for CCIP reserves – Affordable Housing Some scope reductions such as reducing the number of lap lanes from ten to eight will require a renegotiation and amendment to the original IGA. LEED Gold The SECC will be the most sustainable Recreation facility built in the region. With the goal of LEED Gold, the current scope with reductions will meet this standard. While the city has larger goals on the way to electrification, staff are not recommending the geothermal system that was modeled and priced out unless grants and/or alternate funding becomes available. The return on investment financially will cause further trade-offs and at this time doesn’t pencil out as a good investment. The project will be able to achieve a LEED gold certification regardless of the system that is chosen. The design team is not referencing or attempting to leverage LEED requirements and LEED's reference to older baseline models to drive HVAC system selection. Every mechanical/HVAC system that is being considered will meet the requirements of the 2024 IECC. The state of Colorado requires buildings to meet the requirements of the 2021 IECC. The design team is aware of additional State of Colorado requirements such as the electrification ready and solar ready codes and will consider these requirements during design. The design team is also considering all energy recovery options that are available to all the proposed systems in addition to considering the use of solar energy. Page 43 Item 2. City Council Work Session Agenda Item Summary – City of Fort Collins Page 5 of 7 Finally, the design team is also aware of the Building Performance Colorado program. This program comes into play more after construction is complete, but the design team is also tracking these requirements. At this time, the project team does not believe that we will need to concern ourselves with the High- Performance Certification Program as we are not a state funded project. This program mostly requires a 3rd party verification such as LEED or green globes as well, which we will already be pursuing. Funding The two main funding sources of the SECC are the 2015 Community Capital Improvement Program (CCIP) tax and the 2050 Parks and Recreation tax (2050 tax) passed in 2023. The remaining $2M is through a grant from the Colorado Department of Local Affairs (DOLA). There are many considerations with the 2015 CCIP reserve funding, with a balance of $14.5M.  $12 of the $14.5M was included in the SECC original funding stack  There is consideration to allocate $10 of the $14.5M available to Affordable Housing  The original funding for the SECC would need to be reduced another $7.5M  There is an option to increase the 2050 tax allocation and leave less remaining for the future replacement of the Mulberry Pool facility  There is also consideration around the timing and restrictions of spending the reserves on something other than the SECC, as the remaining project from the 2015 CCIP. CCIP Ordinance in 2015 regarding excess collections states “Section 3. That any revenues generated by the Tax and remaining unexpended and unencumbered after the completion of the construction of all the Projects described on Exhibit “A”, excluding any of these Projects eliminated by the City Council under the provisions of Section 2(b) above, may, in the discretion of the City Council, be used to fund additional operation and maintenance of the Projects or for the planning, design, real property acquisition, construction, operation and/or maintenance for any other capital project approved by City Council.” There are multiple ways to stack the 2050 tax and CCIP funding for the SECC project budget. Staff will be providing 2 options that take into consideration the balancing of competing priorities. Staff will also be showing a high-level overview of the projected revenue and expenses for the Operation and Maintenance of the SECC. This number will be refined as the scope of the facility is finalized. Berry Dunn was contracted to provide a pro forma report for the SECC. According to the report, Revenue projections are highly influenced by the number of pass holders and drop in visits to a community recreation center. Current revenue projections for the SECC were taken from multiple sources to reflect the diverse activities in a full-service community recreation center. Memberships and passes were the primary driver, supplemented by daily admissions, aquatics, fitness programs, rentals and seasonal camps. Participation and membership numbers and fee structures were informed by both city data and regional comparisons. Patron data from northern Colorado recreation centers, as well as benchmark facilities in Denver-Boulder region, illustrate a clear pattern of proximity-based usage. Approximately 51% of visits originate from within three miles of a facility, 72% within five miles, and 88% within 10 miles. These findings suggest that over half of anticipated visitors will come from nearby neighborhoods, with nearly three quarters residing within five miles of the facility. Service area overlap with other municipal centers is minimal, reinforcing the distinct market reach for the location. The overall cost recovery for the SECC is anticipated to be 75-90%. The SECC operation and maintenance expense will be off set for the first five years of operation by $220K from the 2015 CCIP O&M fund. Page 44 Item 2. City Council Work Session Agenda Item Summary – City of Fort Collins Page 6 of 7 • Projected Expenses: $2,630,000 • Projected Revenue: $ 2,000,000-$2,300,000 • Projected General Fund Subsidy: • Year 1-5 $100-400K per year • Year 6-10 $350-600K per year • Full-time Staff: ~15 FTE • Annual Cost: $1.2M • Part-time Staff Cost: $700,000 The operation, staffing and revenue projections will continue to be refined as the facility moves through the design process. Staff will continue to consider staffing and operational efficiencies from our current system, expanded needs with a new facility, revenue optimization, customer experience, equity and access and partner utilization when refining the revenue and expense projections. Community Engagement During community engagement, participants expressed limited interest in a full childcare program and did not identify it as a high priority. However, staff consistently heard the need for a child drop-in area to provide short-term supervision for non-school-aged children while parents or caregivers use the facility. This element was incorporated into the revised design when the childcare was removed to reduce the capital cost. Feedback from the community engagement sessions, technical advisory committee and boards and commissions were used to inform spaces as we went through the value engineering process to bring the facility back under the max budget. We also held an engagement session with multiple groups committed to accessibility in the facility. Themes heard during multiple engagement sessions over the past eight months were:  Pools, lazy river, slides, diving boards  Tween/teen pools and fitness  Drop in child watch  Court sports like basketball, volleyball, pickleball  Fitness area able to accommodate sleds, Olympic weights, functional fitness  Indoor play in the pool for the winter months  Lap lanes Page 45 Item 2. City Council Work Session Agenda Item Summary – City of Fort Collins Page 7 of 7 The SECC represents a major community investment for more than a decade in the making. As the project advances toward final design, appropriation, and groundbreaking, staff remain focused on balancing fiscal responsibility with community vision and Council direction—delivering a thoughtfully designed, inclusive, and sustainable facility that supports recreation, learning, and wellness while honoring the intent of voter- approved funding. NEXT STEPS Staff will bring the funding stack for approval and ask to appropriate any available funds in November 2025. Staff will also move forward with the issuance of Certificates of Participation from the Parks and Recreation 2050 tax. ATTACHMENTS 1. Presentation Page 46 Item 2. 10.14.25 Southeast Community Center Update LeAnn Williams Director, Recreation Dean Klingner Director, Community Services Page 47 Item 2. Questions 2 What input do you have on the options presented? What option would Council like to see come forward for appropriation in November, and are there any additional adjustments needed? Page 48 Item 2. Project Purpose and Goals 3 The purpose of the SECC is to provide a vibrant, relevant, enduring, and innovative community destination for generations of residents of Fort Collins, the Library District, and the PSD community, with one-stop access to recreation, aquatics, and library services and resources. By joining together to create and operate this facility, partners will maximize and enhance their individual investments and provide increased convenience, better services, and more varied uses than would be possible in separate standalone facilities. Page 49 Item 2. 4 Increase access and inclusion for vulnerable populations Why Fund the SECC? Who benefits? Brings health and wellness to southern half of Fort Collins •All community members benefit Access to Recreation facility and programs for low-income populations •All Recreation facility pass -$50 per year •70-90% off programs including summer day camp Expands access to Adaptive and Inclusive Recreation Opportunities Fulfills the 2015 CCIP facility scope and 2050 Tax approval to completely fund the facility Page 50 Item 2. Recap of Previous Discussion February 2025 5 Page 51 Item 2. 6 Project Timeline –2015-2023 APRIL CCIP ballot measure passed 2015 2021 202320222021 OCTOBER City Council requests completion of aquatics study AUGUST IGA developed and adopted between Poudre Libraries, PSD and City JANUARY ReCreate: Parks & Recreation Master Plan adopted JAN. -MARCH Aquatics study completed and presented to City Council at work session Partnership conversations with Poudre Libraries and Poudre School District began 2023 NOVEMBER 2050 Parks & Recreation tax passes NOVEMBER City Staff present at Council Work Session Page 52 Item 2. 7 Next Steps 2025 2025 20262025/262025 NOV. –DEC. Appropriations and funding stack resolution MARCH/APRIL Guaranteed Maximum Price / 2050 Bond Appropriation DEC. –APRIL 2050 Bond Development / Design Development 2026 JUNE Facility Groundbreaking OCTOBER Schematic design and funding stack options to Council WE ARE HERE FEBRUARY Present conceptual design and funding stack options at Council Work Session Page 53 Item 2. Program Option 1 Option 2a Option 2b Option 3 Proposed Amenities 40-50,000 sf Large Outdoor Recreation Pool 10-Lane Indoor Pool Small Fitness No Licensed Daycare No Group Exercise No Gymnasium No Walk/Jog Track 60-70,000 sf Large Outdoor Recreation Pool 10-Lane Indoor Pool Medium Fitness Licensed Daycare Small Group Exercise One Court Gym Smaller Track 64-74,000 sf Large Outdoor Recreation Pool 10-Lane Indoor Pool Medium Fitness Licensed Daycare Small Group Exercise Two Court Gym Larger Track 75-85,000 sf Large Indoor/Outdoor Recreation Pool 10-Lane Indoor Pool Medium Fitness Licensed Daycare Small Group Exercise Two Court Gym Larger Track Program Diversity Lowest Medium High Highest Usage (Annually):Lowest Medium High Highest Construction Cost:Lowest Medium Medium Highest Cost Recovery Lowest Medium Highest Medium 30-Yr. O&M General Fund Cost Est: Highest Medium Lowest High 8 Page 54 Item 2. Facility Option 2b –Recommended in Feb 2025 9 Estimated Cost Recovery: 66 –82% Estimated Annual General Fund Subsidy: $450,000 –$850,000 Total Area: 64-74,000 sf Total Cost: $68-80M Group Exercise Small Locker Rooms & Family Change Outdoor Recreational Pool Multiple Pools, Lazy River, Slides Aquatic Support Fitness Center Medium Indoor 10-lane 25 m x 25 yd Lap Pool Admin Offices Lobby/ Reception Maint/ Mech 2-court Gymnasium Licensed Daycare Multi-Purpose Meeting Rooms Event Hall Creative/ Messy/ Innovation Space Catering Kitchen Café/ Lounge Shared Spaces Walking/ Jogging Track Page 55 Item 2. Funding Stack 2.25.25 Council Work Session 10 Bond Years 20 Bond Rate 5.0% Net Taxable Growth Rate 2.5% Assumptions Bond against 2050 Tax Bond Proceeds $27 $36 $43 2050 Tax Reserves $10 $10 $12 CCIP Appropriated $18 $18 $18 CCIP Reserves $12 $12 $12 DOLA Grant $2 $2 $2 Recreation Reserves $1 $2 $3 Total City Funding for SECC $70 $80 $90 % of 2050 Parks & Recreation Share 13%17%20% Bond Years 20 20 20 Bond Rate 5.0%5.0%5.0% Net Taxable Growth Rate 2.5%2.5%2.5% Potential Funding Scenarios ($ in M illions) Assumptions Page 56 Item 2. Community Outreach 11 Page 57 Item 2. COMMUNITY ENGAGEMENT TIMELINE APRIL 21 ADVISORY & ADVOCACY MEETING APRIL 28 LIBRARY TEEN COUNCIL LEADERSHIP MAY 1 YOUTH ADVISORY BOARD MAY 28 PARKS & REC MEETING JULY 23 LAGOON CONCERT SERIES MAY 13 ADVISORY & ADVOCACY MEETING JULY 25 KIDS IN THE PARK JULY 31 CITY PARK POOL END OF SUMMER AUGUST 6 UNIVERSAL & ACCESSIBLE DESIGN MEETING SEPTEMBER 14 OPEN STREETS SEPTEMBER 9 ADVISORY & ADVOCACY MEETING 12 Page 58 Item 2. Community engagement response themes 13 What would make the new Southeast Community Center a place you’d want to return to regularly? Page 59 Item 2. Site, Schematic Design and Budget Update 14 Page 60 Item 2. Schematic Design –Entire Facility 15 Schematic Design that aligned to scope supported by City Council in February 2025 Total Area: 74,641 sf Total Cost: $93M Page 61 Item 2. Options 16 Page 62 Item 2. Facility 2B conceptual to Schematic Design Cost 17 $93M / September 2025 Schematic Design $68-80M / February 2025 Conceptual Design $13M over max City budget 17 Page 63 Item 2. VE to maintain ballot and scope 18 62,400 Sq feet $78.4M 74,641 Sq feet $93M Page 64 Item 2. VE to shared spaces and Library 19 •Library exceeded their $23M budget by ~$4M •Reduced and reconfigured commons and shared spaces (2 rooms plus great hall) •Library general massing changes in yellow and green Page 65 Item 2. Considerations with 2015 CCIP Reserve Funding 20 •Original Funding stack for the $68-80M range included $12M from the 2015 CCIP Reserves •There is consideration to allocate $10 of the $14.5M available to Affordable Housing. •That would reduce the SECC another $7.5M in funding. •Options are to increase the 2050 bond and exhaust the available capital for future projects or reduce the scope. •Timing and restrictions of spending reserves are described in ordinance Page 66 Item 2. Balance Competing Priorities Funding Stack Priorities $72M $78M $12M $24M $2.5M $10M Maximize Project Goals: Community Benefit/Ballot and Plan Guidance Health and Well-Being, Access & Equity Sustainability Maximize 2050 funding available for future recreation facility and aquatic needs Preserve other future options for CCIP reserves 21 Page 67 Item 2. PRIORITY FACILITY AMENITIES AND FEATURES Reduction Buckets and Partner Considerations Exceed LEED Gold Pools Site and Commons Recreation Center (Gym, Weights, Childcare, Track) Shared decision with Poudre Libraries Shared decision with PSD –lap lanes City decision - leisure Shared decision with Poudre Libraries City decision 22 Page 68 Item 2. 2050 Grounding 2050 FUNDING $1M = ¼% 17% to SECC = ~$12M for future Recreation & Aquatic Capital 14% to SECC = ~$24M for future Recreation & Aquatic Capital 23 Page 69 Item 2. Funding Options OPTION 1 Maximize Project Goals $76.5M OPTION 2 Reduce scope/scale features $72.5M Note: All options would include $2M from DOLA Grant A.17% 2050 $9.5M CCIP Reserves B. 16% 2050 $12M CCIP Reserves •Adheres to IGA commitments •$5M to Affordable Housing •$12M to future recreation & aquatic needs •Adheres to IGA commitments •$2.5M to Affordable Housing •$16M to future recreation & aquatic needs A. 14% 2050 $12M CCIP Reserves B. 17% 2050 $4.5M CCIP Reserves •Reduces Lap Lanes – must renegotiate IGA •$2.5M to Affordable Housing •Maximizes $ to future recreation & aquatic needs ($24M) •Reduces Lap Lanes – must renegotiate IGA •$12M to future recreation & aquatic needs •Maximizes $ to Affordable Housing ($10M) 24 Page 70 Item 2. Operations & Maintenance Cost/Projected Cost Recovery 25 •Projected Expenses: $2,630,000 •Projected Revenue: $ 2,000,000-$2,300,000 •Projected General Fund Subsidy: •Year 1-5 $100-400K per year •Year 6-10 $350-600K per year •Full-time Staff: 15 FTE •Annual Cost: $1.2M •Part-time Staff Cost: $700,000 •Revenue projections are highly influenced by number of pass holders. 70-75% of total revenue •Year 1-5 will receive $220K from 2015 CCIP Operations Page 71 Item 2. Proposed Next Steps: November 2025 26 •Resolution to approve the presented funding stack •Make any available appropriations •Move forward with issuance of Certificates of Participation from the 2050 tax 26 Page 72 Item 2. Questions 27 What input do you have on the options presented? What option would Council like to see come forward for appropriation in November, and are there any additional adjustments needed? Page 73 Item 2. 28 Back Up Slides Page 74 Item 2. Engaging Kids 2929 Page 75 Item 2. 30 How should 2050 P&R tax be split between eligible elements? Illustration: Life of 2050 tax = 27 years x $10.5M (2024 dollars) = $283 M ~80% = ~227 M replacement/refresh ~=$8.4M/year ~20% = ~$57 M replacement and construction of indoor and outdoor recreation and pool facilities 80% 20% Potential Split of 2050 Parks and Rec Funds Replacement, Upgrade, Maintenance, etc. -- PARKS & RECREATION Replacement & Construction of Indoor and Oudoor Recreation and Pool Facilities Page 76 Item 2. IGA Update 31 •IGA development in progress •Focus on fair share capital and O & M •Additional considerations: water usage, shared parking spaces, land/sewer uses Page 77 Item 2. Affordable Housing Units Future Southeast Community Center 32 Page 78 Item 2. Affordable Housing and CCIP 33 Status •$4 million over 10 years from 2015 CCIP •Approximately $2 million available in fund currently ($1.6 million for direct subsidy and/or fee credits plus $400,000 dedicated to fee credits) •$1.4 million subsidy request in process (VOA Switchgrass Crossing) Additional Funding Options •Additional direct subsidies for affordable housing projects •Timing for use dependent on housing pipeline; adding funds to competitive process could speed deployment •Expand fee relief •Timing for use dependent on housing pipeline •Equity investments/revolving loan fund •Additional work required to prepare for implementationPage 79 Item 2. 34 Section 3. That any revenues generated by the Tax and remaining unexpended and unencumbered after the completion of the construction of all of the Projects described on Exhibit “A”, excluding any of these Projects eliminated by the City Council under the provisions of Section 2(b) above, may, in the discretion of the City Council, be used to fund additional operation and maintenance of the Projects or for the planning, design, real property acquisition, construction, operation and/or maintenance for any other capital project approved by the City Council. CCIP Ordinance in 2015 regarding excess collections Page 80 Item 2.