HomeMy WebLinkAboutMemo - Mail Packet - 1/24/2013 (7)Economic Health Office
lcity
of
300 LaPorte Avenue
FortCollins
es
Box 580
Fort Collins, CO 80522
97
970.2260
970.224,4.6107 - fax
fcgov.com
NIFNIORAtiUU I
DATE: January 24, 2013
TO: Mayor and Councilmembers
THROUGH: Darin Atteberry, City Manager
FROM: Josh Birks, Economic Health Director
RE: JANUARY 8, 2013 WORK SESSION SUMMARY: AGENDA ITEM #3 -
ROCKY MOUNTAIN INNOSPHERE HISTORY, BUILDING
FINANCING, AND CURRENT AND FUTURE ACTIVITIES
This memorandum summarizes the discussion at the City Council work session on January 8, 2013
about the Rocky Mountain Ionosphere (RMI) History, Building Financing, and Current and Future
Activities.
Staff Report
Staff Attendees: Josh Birks, Economic Health Director, Bruce Hendee, Chief Sustainability Officer
Guests: Mike Freeman, Chief Executive Officer, Rocky Mountain Ionosphere, Mark Wdowik, RMI
Board Chair, Chris Otto, RMI Board Treasurer, Charles Cuypers, RMI Legal Counsel
City and RMI staff presented an overview of the history and evolution of RMI extending back to the
formation of the Fort Collins Technology Incubator (FCTI) in 1998. The presentation reviewed the
current activities and future plans of RMI as well. Finally, the presentation provided a high-level
overview of the City and Urban Renewal Authority's (URA) involvement in the financing of the RMI
building.
Chris Otto, Board Treasurer for RMI, described the one percent ownership of RMI2 Properties, LLC
currently held by Mark Forsythe. He discussed why this ownership interest is required and how RMI
plans to reassign the interest. The plan is to create a Colorado non-profit with the executive committee
of the board as members to hold the one percent.
Councilmember Comments
Key questions from the discussion included:
What happens at disposition of the property? As a qualified non-profit entity under federal
regulations the assets at the time of dissolution must be sold and given to another qualified non-
profit engaged in the same activity or to the local jurisdiction in which the entity resides. So, the
assets of RMI could revert to the City of Fort Collins in the event of dissolution of the non-profit.
How does RMI access the $2.8 million in tax increment pledge? RMI is required to refinance
the $5.3 million loan from the URA through the New Market Tax Credit (NMTC) financing
program between January 1, 2017 and March 31, 2017 in order to receive this assistance. The
assistance involves the URA assuming responsibility of repay of interest on principal on $2.8
million of the $5.3 million loan.