HomeMy WebLinkAboutMemo - Read Before Packet - 5/15/2018 - Memorandum From Carrie Daggett Re: Agenda Item #7 - Updated Version Of Resolution 2018-046 (Downtown Development Authority)-1-
RESOLUTION 2018-046
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROVING AN INTERGOVERNMENTAL AGREEMENT BETWEEN THE
CITY OF FORT COLLINS AND THE FORT COLLINS DOWNTOWN
DEVELOPMENT AUTHORITY GOVERNING THE USE OF A LINE OF CREDIT
WHEREAS, on April 21, 1981, the City Council adopted Ordinance No. 046, 1981,
establishing the Fort Collins, Colorado Downtown Development Authority (“DDA”); and
WHEREAS, the DDA has been duly organized in accordance with the Colorado Revised
Statutes 31-25-801, et seq.; and
WHEREAS, at the November 7, 2006, general election, a City-initiated measure to
authorize the issuance of bonds for DDA projects through debt of up to $150,000,000, with a
repayment cost of up to $250,000,000, was approved by the votersqualified electors as provided
C.R.S, Title 31, Article 25, Part 8; and
WHEREAS, in 2012, the Board of Directors of the DDA recommended to the City Council
through the adoption of Resolution 2012-02, the establishment of a revolving line of credit for a
six-year period in the amount of one million dollars annually to finance DDA projects and
programs in accordance with its approved Plan of Development, the Downtown Plan and the
Downtown Strategic Plan; and
WHEREAS, in 2012, the City Council adopted Resolution 2012-081, approving an
intergovernmental agreement between the City and the DDA to govern the use of the DDA line of
credit, and Ordinance No. 089, 2012, authorizing the establishment of a revolving line of credit,
as described above; and
WHEREAS, the City and the DDA entered into that intergovernmental agreement, and
implemented its terms, and the line of credit arrangement established in 2012 is scheduled to expire
at the end of 2018; and
WHEREAS, in order to renew and update the line of credit arrangement, staff of the City
and the DDA have negotiated a new instrument and related documents that would renew the line
of credit for a six-year period, and increase the limit on the line of credit limit to a maximum draw
of five million dollars to reduce the number of draws required to support DDA activities, thus
reducing the inefficiencies in the original arrangement; and
WHEREAS, the Board of Directors of the DDA has recommended to the City Council
through the adoption of Resolution 2018-02, the establishment of a revolving line of credit for a
six-year period in the maximum amount of five million dollars per draw (“Line of Credit”), with
such other terms and conditions as are set forth in the financing documents, a copy of which are
on file in the office of the City Clerk and available for public inspection (the “LOC Documents”),
to finance DDA projects and programs in accordance with its approved Plan of Development, the
Downtown Plan and the Downtown Strategic Plan; and
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WHEREAS, the establishment of the Line of Credit for such purpose would be financially
beneficial for the DDA and the community as a whole; and
WHEREAS, the City is authorized to enter into intergovernmental agreements, such as a
grant agreement, to provide any function, service or facility, under Article II, Section 16 of the
Charter of the City of Fort Collins and Section 29-1-203, C.R.S.; and
WHEREAS, the City desires to enter into an intergovernmental agreement between the
City and the DDA regarding the establishment of the Line of Credit and governing its use in the
form attached hereto and incorporated herein as Exhibit “A” (the “IGA”).
NOW, THEREFORE, BE IT RESOLVED BY COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1. That the City Council hereby makes and adopts the determinations and
findings contained in the recitals set forth above.
Section 2. That the Mayor is hereby authorized to execute the IGA on behalf of the
City, in substantially the form contained in Exhibit “A” attached hereto and incorporated herein
by this reference, subject to such modifications and additions as may be deemed necessary or
appropriate by the City Manager, in consultation with the City Attorney, in order to protect the
interests of the City or to further the purposes of the Agreement or this Resolution.
Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 15th
day of May, A.D. 2018.
_________________________________
Mayor Pro Tem
ATTEST:
_____________________________
City Clerk
REVISED - 5/14/18