HomeMy WebLinkAboutAgenda - Mail Packet - 4/29/2013 - City Council Adjourned Meeting Agenda - April 29, 2013CITY COUNCIL AGENDA
Karen Weitkunat, Mayor Council Chambers
Gerry Horak, District 6, Mayor Pro Tem City Hall West
Bob Overbeck, District 1 300 LaPorte Avenue
Lisa Poppaw, District 2 Fort Collins, Colorado
Gino Campana, District 3
Wade Troxell, District 4
Ross Cunniff, District 5 Cablecast on City Cable Channel 14
on the Comcast cable system
Darin Atteberry, City Manager
Steve Roy, City Attorney
Wanda Nelson, City Clerk
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ADJOURNED MEETING
April 29, 2013
6 p.m.
1. Call Meeting to Order.
2. Roll Call.
3. Continuance of Items Relating to the Foothills Mall to May 7, 2013. (staff: Josh Birks, Bruce
Hendee; 5 minute staff presentation; 5 minute discussion)
A. Public Hearing and Consideration of Amendments to the Midtown Urban Renewal Plan to
Authorize the Use of Tax Increment Financing in the Foothills Mall Area of the Plan.
B. Public Hearing and Consideration of Amendments to the Foothills Metropolitan District
Service Plan.
Staff has proposed that the Midtown Urban Renewal Plan be amended to authorize the use of tax
increment financing in the Foothills Mall area of the Plan, in connection with the furtherance of a
proposed redevelopment of the Foothills Mall for the eradication of blight under the Plan. As
required in connection with such an amendment, notice of a public hearing on the Plan
amendment for April 29, 2013, was provided to all property owners, residents, and owners of
business concerns in the Urban Renewal Area, and to Larimer County, and was published in the
Fort Collins Coloradoan.
In addition, amendments to the Service Plan of the Foothills Metropolitan District related to the
redevelopment of Foothills Mall have also been proposed. Notice of a public hearing for April 29,
2013, on the proposed amendments was published and mailed as required by City policy.
Staff is requesting that each of the two public hearings described in the notices, and consideration
of the related items, be continued to May 7, 2013, in order to allow further time for development of
April 29, 2013
the details of a related redevelopment and reimbursement agreement, as well as a related
preliminary agreement with Larimer County.
4. First Reading of Ordinance No.068, 2013, Authorizing the Conveyance of a Non-Exclusive Utility
Easement to Public Service Company of Colorado. (staff: Rich Richter, Karen Cumbo; 5 minute
staff presentation; 10 minute dicussion)
This Ordinance conveys a Non-Exclusive Utility Easement to Public Service Company of
Colorado(“PSCo”).
The City of Fort Collins staff worked with PSCo over the past several months to determine the
alignment of and mitigate the impacts for a new 16 inch high pressure gas transmission line within
city limits. The project is designed and construction is expected to start in May of 2013. Most of
the City issues were addressed, and City Council approved easements in Natural Areas and
passed Resolution 2013-022 on March 19, 2013, directing the use of the payments from PSCo be
used for natural areas and trails.
There was continuing concern, however, about the proposed location of the pipeline in private
property at the northwest corner of Harmony Road and Shields Street. Although this was primarily
an issue of concern between the property owner and PSCo, the City expressed concern over the
impacts on future commercial development at the site. At its March 19 meeting, City Council
directed the City Manager to follow up with PSCo on this issue. Following several conversations
with senior PSCo executives and project staff , they agreed in principle to relocate the pipeline
within the Shields Street right-of-way if the City agreed to pay for any relocation of the
approximately 2,000 feet of line adjacent to the property that may be necessary in the next fifteen
years.
This is a low-risk option, given the location of the pipeline in the Shields Street right of way. PSCo
is re-designing the pipeline within the Shields Street right-of way. In order to document this
agreement between the City and PSCo, staff recommends a Non-Exclusive Pipeline Easement
within the Shields Street right-of-way.
5. Other Business.
6. Adjournment.
DATE: April 29, 2013
STAFF: Josh Birks
Bruce Hendee
AGENDA ITEM SUMMARY
FORT COLLINS CITY COUNCIL 3
SUBJECT
Continuance of Items Relating to the Foothills Mall to May 7, 2013.
A. Public Hearing and Consideration of Amendments to the Midtown Urban Renewal Plan to Authorize the Use
of Tax Increment Financing in the Foothills Mall Area of the Plan.
B. Public Hearing and Consideration of Amendments to the Foothills Metropolitan District Service Plan.
EXECUTIVE SUMMARY
Staff has proposed that the Midtown Urban Renewal Plan be amended to authorize the use of tax increment financing
in the Foothills Mall area of the Plan, in connection with the furtherance of a proposed redevelopment of the Foothills
Mall for the eradication of blight under the Plan. As required in connection with such an amendment, notice of a public
hearing on the Plan amendment for April 29, 2013 was provided to all property owners, residents, and owners of
business concerns in the Urban Renewal Area, and to Larimer County, and was published in the Fort Collins
Coloradoan.
In addition, amendments to the Service Plan of the Foothills Metropolitan District related to the redevelopment of
Foothills Mall have also been proposed. Notice of a public hearing for April 29, 2013 on the proposed amendments
was published and mailed, as required by City policy.
Staff is requesting that each of the two public hearings described in the notices and consideration of the related items
be continued to May 7, 2013, to allow further time for development of the details of a related redevelopment and
reimbursement agreement, as well as a related preliminary agreement with Larimer County.
BACKGROUND / DISCUSSION
Urban Renewal Plan Amendment
The Midtown Urban Renewal Plan (Plan) was adopted by the Urban Renewal Authority (URA) Board in September
2011, and ratified and reaffirmed February 2013. The purpose of the Plan is to provide the URA the opportunity to
use tax increment financing (TIF) to remediate blighted conditions through development and redevelopment. In July
2012, Walton Foothills Holdings IV, LLC (Owner), purchased Foothills Mall and adjacent property with the intent to
complete a significant redevelopment.
An Agreement to Negotiate was executed between the Owner and the URA in November 2012, and discussions with
regard to the public financing package have been occurring since; one component of the package being TIF via the
URA. In order to utilize TIF, City Council must first amend the existing Plan and create a TIF District. Once a TIF
District is created, the URA is permitted to collect incremental tax revenue for a period of up to 25 years.
Notice was mailed to all property owners, residents, and owners of business concerns in the Urban Renewal Area on
March 29, 2013, and published in the Fort Collins Coloradoan on March 29, 2013, that a public hearing would be held
by the City Council on April 29, 2013, for the purpose of amending the Plan to authorize the use of tax increment
financing in the Foothills Mall area of the Plan, as well as other undertakings and activities in accordance with the
Colorado Urban Renewal Law, Sections 31-25-101, et seq., C.R.S. In addition, required notice and an estimation of
fiscal impacts was provided to Larimer County on January 25, 2013.
Foothills Metropolitan District Service Plan Amendment
In addition, to allow the use of the Foothills Metropolitan District (District) to raise revenues and incur debt in
connection with the Redevelopment and Reimbursement Agreement currently being prepared for City Council
consideration on May 7, 2013, amendments to the Service Plan for the District are required. An initial Service Plan
for the District was approved by the City Council on September 4, 2012, and the District was subsequently formed after
April 29, 2013 -2- ITEM 3
approval by the voters in the District area. The initial Service Plan did not authorize the District to move forward to
fund, build or finance improvements, with the expectation that approval of amendments would be proposed for Council
consideration to the extent required to carry out the purposes of the District, in light of the specific redevelopment
project plans and the related financing terms.
Procedures for approval and amendment of metropolitan district service plans are set out in the City’s metropolitan
district policy (adopted by the Council on July 15, 2008). In addition to published notice of a required public hearing,
the City’s policy also requires that notice be mailed to all owners of property within the District service area. Notice
of a public hearing on a proposed amendment to the District Service Plan scheduled for April 29, 2013, was published,
and notices have been mailed to all owners of property within the District area as required in the City policy.
Staff is requesting that each of the two public hearings described in the notices, and consideration of the related items,
be continued to May 7, 2013, in order to allow further time for development of the details of a related redevelopment
and reimbursement agreement, as well as a related preliminary agreement with Larimer County.
FINANCIAL / ECONOMIC IMPACTS
Continuation of the Public Hearings has no direct financial/economic.
ENVIRONMENTAL IMPACTS
Continuation of the Public Hearings has no direct environmental impacts.
STAFF RECOMMENDATION
Staff recommends that the Council continue each of these Public Hearings to May 7, 2013.
DATE: April 29, 2013
STAFF: Rick Richter
Karen Cumbo
AGENDA ITEM SUMMARY
FORT COLLINS CITY COUNCIL 4
SUBJECT
First Reading of Ordinance No. 068, 2013, Authorizing the Conveyance of a Non-Exclusive Utility Easement to Public
Service Company of Colorado.
EXECUTIVE SUMMARY
This Ordinance conveys a Non-Exclusive Utility Easement to Public Service Company of Colorado(“PSCo”).
The City of Fort Collins staff worked with PSCo over the past several months to determine the alignment of and
mitigate the impacts for a new 16-inch high pressure gas transmission line within city limits. The project is designed
and construction is expected to start in May 2013. Most of the City issues were addressed, and City Council approved
easements in Natural Areas and adopted Resolution 2013-022 on March 19, 2013, directing the use of the payments
from PSCo be used for natural areas and trails.
There was continuing concern, however, about the proposed location of the pipeline in private property at the
northwest corner of Harmony Road and Shields Street. Although this was primarily an issue of concern between the
property owner and PSCo, the City expressed concern over the impacts on future commercial development at the site.
At its March 19 meeting, City Council directed the City Manager to follow up with PSCo on this issue. Following several
conversations with senior PSCo executives and project staff , they agreed in principle to relocate the pipeline within
the Shields Street right-of-way if the City agreed to pay for any relocation of the approximately 2,000 feet of line
adjacent to the property that may be necessary in the next fifteen years.
This is a low-risk option, given the location of the pipeline in the Shields Street right of way. PSCo is redesigning the
pipeline within the Shields Street right-of way. In order to document this agreement between the City and PSCo, staff
recommends a Non-Exclusive Pipeline Easement within the Shields Street right-of-way.
BACKGROUND / DISCUSSION
Public Service Company of Colorado (PSCo), an Xcel Energy company, is requesting easements within the Shields
Street right-of-way to construct, operate, and maintain a high pressure gas pipeline. The proposed project is part of
the larger West Main Natural Gas Pipeline Replacement Project (West Main Project) that encompasses Larimer,
Weld, and Boulder Counties. The project will replace an existing eight-inch gas pipeline that is 83 years old and at
the end of service life, with a 16-inch high pressure gas pipeline. The proposed project will traverse the city north to
south and will impact the road surface and traffic along Shields Street, Horsetooth Road, McClelland Drive, Drake
Road, and Timberline Road.
PSCo is authorized in Section 6 of the City Code to construct, operate and maintain gas facilities within the public right-
of-way. Much of this project’s pipeline will be located in the right-of-way. PSCo company policy encourages the use
of undeveloped property if it is available, so they designed the line to veer west across Shields and into private property
at the northwest corner of Harmony and Shields. The owners of that property strongly objected and PSCo initiated
eminent domain action to acquire an easement on the property. This action is primarily between PSCo and the
property owners, but the City has an interest in the implementation of its Structure Plan, and the expected commercial
development of the property.
At the City’s request, PSCo agreed to amend the design to move the line away from the private property and into the
right-of-way in this 2,000-foot stretch. However, PSCo asked that the City guarantee they will not have to relocate the
line for fifteen years, with an extension of five years if the private property is not yet developed. This is an extremely
low-risk possibility because of the location and depth of the line. That is the intent of this easement.
FINANCIAL / ECONOMIC IMPACTS
The approval of the easement will eliminate the impacts of the gas transmission line on future commercial
development at the site on the northwest corner of Harmony Road and Shields Street (designated as a neighborhood
April 29, 2013 -2- ITEM 4
shopping center). If the City requires the pipeline within the easement to be relocated within 15 years of installation,
the relocation would be at the City’s expense.
ENVIRONMENTAL IMPACTS
The proposed re-alignment for the project will avoid impacts to the private property and place the pipeline in the public
right-of-way.
STAFF RECOMMENDATION
Staff recommends adoption of this Ordinance on First Reading.
PUBLIC OUTREACH
Three open houses were held in Larimer County to share the overall plan with the public. A total of 3,409 property
owners within 750 feet of the preferred and alternate pipeline routes within Fort Collins were notified of the meetings.
Open houses were held as follows:
• February 29, 2012 at the Walt Clark Middle School in Loveland from 4 to 7 pm.
• March 8, 2012 at the Fort Collins Marriott in Fort Collins from 4 to 7 pm.
• October 25, 2012 at the Lincoln Center in Fort Collins from 4 to 7 pm.
In addition, a West Main project website (www.xcelenergywestmainpipeline.com) was created to provide updated
information on the project and related open houses.
ATTACHMENTS
1. Location Map
ORDINANCE NO. 068, 2013
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE CONVEYANCE OF
A NON-EXCLUSIVE UTILITY EASEMENT IN A PORTION OF
SOUTH SHIELDS STREET TO
PUBLIC SERVICE COMPANY OF COLORADO
WHEREAS, the City is the owner of the current Shields Street right-of-way lying within
the southwest quarter of Section 34 and the southeast quarter of Section 35, Township 6 North,
Range 69 West of the 6th Principal Meridian, County of Larimer, State of Colorado, between
Harmony Road and a point 548 feet north, more or less, of the intersection between Troutman
Parkway and Shields Street (the “City Property”); and
WHEREAS, Public Service Company of Colorado, (“PSCo”) has requested a non-
exclusive utility easement (the “Easement”) on a portion of the City Property for the benefit of
its West Main High Pressure Natural Gas Line Replacement Project (the “Project”; and
WHEREAS, the portion of the Project for which the Easement is needed consists of the
installation of a new underground natural gas pipeline in a segment of the line running from
Loveland north through Fort Collins to Vine Drive as part of a larger system encompassing
Larimer, Weld and Boulder counties; and
WHEREAS, the proposed non-exclusive utility easement would be 50 feet wide, contain
2.99 acres, and run within the right-of-way for South Shields Street as shown and described on
Exhibits “A-1" and “A-2", attached and incorporated herein by reference (the “Pipeline
Easement”); and
WHEREAS, PSCo would be required to obtain excavation permits and other
administrative approvals normally associated with work within a City right-of-way, and would
also be required to restore any impacts to the City Property from the Project; and
WHEREAS, the location of the natural gas pipeline in the location described will
eliminate undesirable barriers to the implementation of City Plan on adjoining property, and as
well as undesirable alignment of the pipeline in the street that would result from the originally
planned location of the pipeline; and
WHEREAS, because PSCo has modified Project plans at the request of the City in light
of the City’s preferred location for the pipeline, City staff recommends that no compensation be
required for the Easement; and
WHEREAS, the Easement is for the limited term of fifteen years, after which the natural
gas pipeline would be governed by all requirements and limitations applicable to utility lines,
and particularly natural gas pipelines, in City rights-of-way; and
WHEREAS, City staff recommends that the City Council authorize the granting of the
Easement as described in this Ordinance; and
WHEREAS, Section 23-111(a) of the City Code provides that the City Council is
authorized to sell, convey, or otherwise dispose of any and all interests in real property owned in
the name of the City, provided that the City Council first finds, by ordinance, that such sale or
other disposition is in the best interests of the City.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. That the City Council hereby finds that the City's conveyance to PSCo of
the Easement on the City Property as provided herein is in the best interests of the City.
Section 2. That the Mayor is hereby authorized to execute such documents as are
necessary to convey the Easement to PSCo on terms and conditions consistent with this
Ordinance, together with such additional terms and conditions as the City Manager, in
consultation with the City Attorney, determines are necessary or appropriate to protect the
interests of the City, including, but not limited to, any necessary changes to the legal descriptions
of the Easements, as long as such changes do not materially increase the size or change the
character of the Easements.
Introduced, considered favorably on first reading, and ordered published this 29th day of
April, A.D. 2013, and to be presented for final passage on the 7th day of May, A.D. 2013.
_________________________________
Mayor
ATTEST:
_____________________________
City Clerk
Passed and adopted on final reading on the 7th day of May, A.D. 2013.
_________________________________
Mayor
ATTEST:
_____________________________
City Clerk
EXHIBIT A-1
EXHIBIT A-2