HomeMy WebLinkAboutAgenda - Mail Packet - 10/2/2018 - Fort Collins Urban Renewal Authority Agenda - October 12, 2018City of Fort Collins Page 1
Wade Troxell, Chair Council Information Center
Gerry Horak, Vice-Chair City Hall West
Bob Overbeck 300 LaPorte Avenue
Ray Martinez Fort Collins, Colorado
Ken Summers
Kristin Stephens
Ross Cunniff Cablecast on City Cable Channel 14
Steve Johnson and Channel 881 on the Comcast cable system
Christophe Febvre
Joe Wise
Andy Smith
Carrie Daggett Darin Atteberry Delynn Coldiron
City Attorney Executive Director Secretary
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URBAN RENEWAL AUTHORITY MEETING
October 12, 2018
3:00 PM
CALL MEETING TO ORDER
ROLL CALL
AGENDA REVIEW
Executive Director’s Review of Agenda.
CITIZEN PARTICIPATION
City of Fort Collins Page 2
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1. Consideration and Approval of the August 24, 2018 Urban Renewal Authority Board Meeting.
The purpose of this item is to approve the minutes from the August 24, 2018 Urban Renewal Authority
Board meeting.
2. Resolution No. 092 Appointing the Authority's New Legal Counsel and Authorizing the Executive
Director to Enter into a Professional Services Agreement for the Legal Services to be Provided by that
Legal Counsel. (staff: Josh Birks; 2 minute staff presentation; 10 minute discussion)
The purpose of this item is to discuss the selection of outside legal services to serve as the Urban
Renewal Authority (URA) legal representation and to authorize the Executive Director to execute the
contractual agreement.
City of Fort Collins Page 3
3. Public Hearing and Resolution No. 093 Adopting the 2019 Budget for the Fort Collins Urban Renewal
Authority. (staff: Josh Birks; 5 minute staff presentation; 20 minute discussion)
The purpose of this item is to adopt the 2019 budget and to appropriate the funds to be spent for the
Fort Collins Urban Renewal Authority (URA), comprised of the North College Tax Increment Financing
(TIF) District, the Prospect South TIF District, and the Foothills TIF District. The budget revenues
include property and sales tax increment, and interest earned on investments for a total of $5,593,535.
Budget expenses include general operations, project obligations and debt service payments, totaling
$5,867,677. The 2019 budget corresponds to the budget that was submitted and approved as part of
the Budgeting for Outcomes process for 2019 and 2020. The URA’s 2019 annual appropriation is
$5,867,677 including $300,000 of reserves from the North College District.
4. Draft Drake and College Urban Renewal Plan. (staff: Josh Birks; 10 minute staff presentation; 30
minute discussion)
The purpose of this item is to obtain feedback from the Urban Renewal Authority Board on the
preliminary draft of the Drake and College Urban Renewal Plan. The Board’s input will be combined
with input from the taxing entities and public to generate updates and revisions to the Plan.
OTHER BUSINESS
ADJOURNMENT
Agenda Item 1
Item # 1 Page 1
AGENDA ITEM SUMMARY October 12, 2018
Urban Renewal Authority Board
STAFF
Delynn Coldiron, City Clerk
SUBJECT
Consideration and Approval of the August 24, 2018 Urban Renewal Authority Board Meeting.
EXECUTIVE SUMMARY
The purpose of this item is to approve the minutes from the August 24, 2018 Urban Renewal Authority Board
meeting.
ATTACHMENTS
1. August 24, 2018 (PDF)
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City of Fort Collins Page 335
URBAN RENEWAL AUTHORITY BOARD
August 24, 2018
8:00 AM
• CALL MEETING TO ORDER
• ROLL CALL
PRESENT: Overbeck, Troxell, Horak, Martinez, Stephens, Johnson, Wise, Febvre
ABSENT: Smith, Cunniff, Summers
Staff Present: Atteberry, Daggett, Coldiron
• AGENDA REVIEW
Executive Director Atteberry stated there were no changes to the published agenda.
1. Consideration and Approval of the Minutes from the July 9, 2018 Urban Renewal Authority
Board. (Adopted)
The purpose of this item is to approve the minutes from the July 9, 2018, Urban Renewal Authority
Board meeting.
Commissioner Horak made a motion, seconded by Commissioner Overbeck, to approve the
minutes of the July 9, 2018 meeting.
RESULT: ADOPTED [UNANIMOUS]
MOVER: Gerry Horak, District 6
SECONDER: Bob Overbeck, District 1
AYES: Overbeck, Troxell, Horak, Martinez, Stephens, Johnson, Wise, Febvre
ABSENT: Smith, Cunniff, Summers
2. Resolution No. 089 of the Board of Commissioners of the Fort Collins Urban Renewal Authority
Appointing a Vice-Chair. (Adopted)
The purpose of this item is to discuss the election of the Fort Collins Urban Renewal Authority Vice-
Chair and other associated changes.
Josh Birks, Economic Health and Redevelopment Director, stated the Urban Renewal Authority’s
bylaws have been changed to switch the Vice Chair from automatically being the Mayor Pro Tem
to be an elected position.
Commissioner Horak expressed interest in the position.
Commissioner Johnson made a motion, seconded by Commissioner Overbeck, to adopt Resolution
No. 089 nominating Commissioner Horak as Vice Chair.
RESULT: RESOLUTION NO. 089 ADOPTED [UNANIMOUS]
MOVER: Steve Johnson
SECONDER: Bob Overbeck, District 1
AYES: Overbeck, Troxell, Horak, Martinez, Stephens, Johnson, Wise, Febvre
ABSENT: Smith, Cunniff, Summers
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Attachment: August 24, 2018 (7203 : URA minutes-8/24/18)
August 24, 2018
City of Fort Collins Page 336
3. Resolution No. 090 of the Board of Commissioners of the Fort Collins Urban Renewal Authority
Appointing New Members to the Board Finance Committee. (Adopted on First Reading)
The purpose of this item is to discuss the appointment of five (5) members to the Fort Collins Urban
Renewal Authority (URA) Finance Committee. The current members on the Committee are Chair
Troxell and Commissioners Cunniff and Summers.
Josh Birks, Economic Health and Redevelopment Director, stated the Urban Renewal Authority’s
bylaws have changed to reconstitute the URA Finance Committee into a group of five members.
Vice Chair Horak suggested the current Council Finance Committee members be included: Chair
Troxell and Commissioners Cunniff and Summers, plus two of the four new URA members.
Commissioner Wise expressed interest and Commissioners discussed the estimated time
commitment of the position.
Vice Chair Horak made a motion, seconded by Commissioner Overbeck, to adopt Resolution No.
090 with the following names inserted: Chair Troxell, Commissioner Cunniff, Commissioner
Summers, Commissioner Wise, and Commissioner Febvre.
RESULT: RESOLUTION NO. 090 ADOPTED [UNANIMOUS]
MOVER: Gerry Horak, District 6
SECONDER: Bob Overbeck, District 1
AYES: Overbeck, Troxell, Horak, Martinez, Stephens, Johnson, Wise, Febvre
ABSENT: Smith, Cunniff, Summers
4. Resolution No. 091 of the Board of Commissioners of the Fort Collins Urban Renewal Authority
Appointing Four Commissioners and the Executive Director to Serve on a Selection Committee
for the Authority's New Legal Counsel. (Adopted)
The purpose of this item is to discuss the appointment of four Commissioners and the Executive
Director to a Selection Committee to evaluate candidates and recommend an outside legal counsel
appointment to the Board. The committee make up is proposed to include the Chair, Vice Chair,
Executive Director, and two additional commissioners - ideally one each from the Council membership
and the other entity membership.
Josh Birks, Economic Health and Redevelopment Director, stated the recommendation of City
Attorney Daggett is for the URA to select separate and outside legal counsel so as to avoid potential
future conflicts. This item would appoint four members from the Board, as well as the Executive
Director, to sit on a selection committee for that outside legal counsel.
Commissioners Martinez, Stephens, and Overbeck expressed interest in serving on the committee.
Chair Troxell stated he would also serve.
Vice Chair Horak made a motion, seconded by Commissioner Martinez, to adopt Resolution No.
091 inserting the names Chair Troxell, Commissioner Martinez, Commissioner Stephens, and
Commissioner Overbeck.
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Attachment: August 24, 2018 (7203 : URA minutes-8/24/18)
August 24, 2018
City of Fort Collins Page 337
RESULT: RESOLUTION NO. 091 ADOPTED [UNANIMOUS]
MOVER: Gerry Horak, District 6
SECONDER: Ray Martinez, District 2
AYES: Overbeck, Troxell, Horak, Martinez, Stephens, Johnson, Wise, Febvre
ABSENT: Smith, Cunniff, Summers
5. Update Regarding Existing Conditions Survey and New Urban Renewal Plan. (No Action Taken)
The purpose of this item is to share draft findings of the existing conditions survey and highlight key
points for the planned urban renewal plan document. On July 9th the Fort Collins Urban Renewal
Authority Board (the “Board”) authorized staff to undertake the first steps to consider a new urban
renewal plan area in the vicinity of Drake Rd. and College Ave. These steps include the preparation
of an urban renewal existing conditions study and the development of a new urban renewal plan
document for consideration by the Fort Collins City Council in late November.
Executive Director Atteberry stated Patrick Rowe is leaving his position and thanked him for his
service.
Commissioner Martinez thanked Rowe for his service.
Patrick Rowe, Redevelopment Coordinator, stated this item will provide an update on the existing
conditions survey and new plan area for the vicinity of Drake Road and College Avenue, primarily
the former Kmart site on the northwest corner and the Spradley Barr site on the southwest corner.
Rowe noted the fundamental purpose of the Urban Renewal Authority is to mitigate and remediate
blight. As such, a blight finding of at least four of eleven factors is required prior to a new plan
area being formed.
Rowe described the substantially complete draft survey, which has currently found six blight
factors in the area. He detailed the factors and showed example photos. The six blight conditions
found were: deteriorated or deteriorating structures, predominance of defective or inadequate street
layout, unsanitary or unsafe conditions, deterioration of site and other improvements, unusual
topography or inadequate public improvements, and vacancy of sites. Rowe stated the existing
conditions survey will be finalized in the next several weeks after which property owners will be
notified, and City Council will be presented with the survey for its ratification.
Rowe stated the plan area document is still very much in development but highlighted the main
principles of the document. It will be strategic, focused, and community-benefits oriented, and
will build from City Plan, the Midtown Plan, and the Midtown Transportation Plan. The main
themes from those documents that will be highlighted in the plan area document are supporting
transit-oriented development, densification, community spine investment, enhancing all modes of
travel, recognizing identifiable and unique design, and making optimal use of the MAX bus rapid
transit system.
Rowe discussed the schedule and next steps for both the URA Board and the plan formation
process in general.
Vice Chair Horak requested information as to the status of discussions with the taxing entities.
Josh Birks, Economic Health and Redevelopment Director, replied staff is continuing to discuss
how best to move forward with the plan area review committee with the County. An IGA with
the underlying taxing entities has yet to be executed.
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Attachment: August 24, 2018 (7203 : URA minutes-8/24/18)
August 24, 2018
City of Fort Collins Page 338
Vice Chair Horak suggested it would be useful for the Board to receive more detailed information
on the proposed schedule.
Commissioner Wise expressed concern the schedule may not be realistic with the districts’
schedules.
Commissioner Febvre agreed and stated he is concerned the School District Board may not be
fully aware of what is coming. He asked when the fiscal impact model is slated to be completed
and asked if there would be an opportunity to provide feedback on that model. Birks replied some
changes need to be made to the model before it can be used and that work is underway. Members
should review the model and ensure all parties’ understanding of the impacts are reflected at the
first meeting.
Vice Chair Horak asked who is in charge of completing the fiscal impact model. Birks replied all
taxing entities have agreed that the County will be the body that maintains the model and they are
ultimately responsible for commissioning updates and ensuring they are done in a timely manner.
Commissioner Martinez asked what is meant by the term “slum” in the blight factors report. Rowe
replied that term is used in the state statute and has a legal definition. He noted each of the blight
factors includes underlying conditions that are generally accepted.
Commissioner Martinez asked if property owners are being asked to mitigate dangerous conditions
as they are found. Rowe replied some intermediary improvements have been requested. Birks
replied any life safety issues would result in contact with property owners and appropriate groups.
Executive Director Atteberry noted graffiti is removed within 24 hours of it being reported on
public property. He suggested blight reports be sent to the Planning, Development and
Transportation group for code violations to be identified.
Commissioner Johnson asked how the developers’ plans are related to community objectives. He
asked if any new community objectives could be included in future design. Rowe replied the
Brinkman submittal on the southwest corner has a concept in the City’s planning process. The
plan was also taken before the URA Finance Committee to vet the concept. Staff is hopeful there
is still the opportunity to have some continued dialogue on the proposal, particularly regarding
affordable or workforce housing; however, the major components of the project are well
understood.
Birks stated the King Soopers project in the old Kmart is in a different portion of the planning
process and they are contemplating plan revisions. He stated there is some room to influence both
projects within the planning process, particularly King Soopers, and through the conversations that
occur when public funds are contemplated.
Commissioner Johnson asked if the residential units are only on the Spradley Barr parcel. Birks
replied in the affirmative.
Commissioner Johnson stated he would be very supportive of the use of tax increment financing
to address affordable housing and encouraged the City to get as many affordable housing benefits
from the use of public money in URA projects as possible.
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Attachment: August 24, 2018 (7203 : URA minutes-8/24/18)
August 24, 2018
City of Fort Collins Page 339
Commissioner Johnson asked how tax increment financing benefits rental units. Birks replied that
is typically contingent upon many project conditions; however, tax increment could help to close
the upfront capital subsidy, therefore making it easier to offer a unit at a fixed income requirement.
Tax increment alone is usually not enough, so the requirements for how long units remain
affordable usually come from other funding sources. Birks noted the financial gap for projects
often becomes larger when public benefits such as affordable housing are included.
Commissioner Stephens asked if other funding would be able to be used for affordable housing.
Birks replied in the affirmative.
Commissioner Stephens stated this location provides a good opportunity to use some of the funds
for affordable housing and stated she would like to ensure the developer is aware of that objective
on the front end of the process.
Commissioner Wise stated adding a number of residential units in a TIF area puts maximum strain
on the taxing districts in terms of need for services with no significant financial return for 25 years.
Commissioner Febvre stated a school district has interest in affordable housing; however, how to
make those investments is a key question for the community as adding students creates pressure
on the school district.
Commissioner Stephens noted teachers are having a hard time affording to live in Fort Collins and
suggested the creation of new affordable housing may not necessarily bring in new students to the
district.
Commissioner Johnson stated the purpose of the cost impact model is to ensure all districts are
made whole so they are able to provide the services they are mandated to provide for residences.
He questioned the benefits of additional invested increment. He stated the County would be
willing to commit additional increment above what the cost impact study shows to provide
additional affordable housing.
Chair Troxell asked how property owners and area parcels will be brought into this discussion.
Birks replied all property owners have already been contacted and ongoing discussions have
occurred with responsive parties with the hope of drawing outer parcels into the conversation now.
Mailed notice of an open house will also occur.
RESULT: NO ACTION TAKEN
• OTHER BUSINESS
Chair Troxell noted the next URA meeting is scheduled for October 12
th
. Birks noted the selection
committee for legal counsel will be meeting in September.
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Attachment: August 24, 2018 (7203 : URA minutes-8/24/18)
August 24, 2018
City of Fort Collins Page 340
• ADJOURNMENT
The meeting adjourned at 9:42 a.m.
________________________________
Chair
ATTEST:
________________________________
Secretary
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Attachment: August 24, 2018 (7203 : URA minutes-8/24/18)
Agenda Item 2
Item # 2 Page 1
AGENDA ITEM SUMMARY October 12, 2018
Urban Renewal Authority Board
STAFF
Josh Birks, Economic Health Director
John Duval, Legal
SUBJECT
Resolution No. 092 Appointing the Authority's New Legal Counsel and Authorizing the Executive Director to
Enter into a Professional Services Agreement for the Legal Services to be Provided by that Legal Counsel.
EXECUTIVE SUMMARY
The purpose of this item is to discuss the selection of outside legal services to serve as the Urban Renewal
Authority (URA) legal representation and to authorize the Executive Director to execute the contractual
agreement.
STAFF RECOMMENDATION
Staff recommends adoption of the Resolution.
BACKGROUND / DISCUSSION
On August 24, 2018, the Board of Commissioners of the Fort Collins Urban Renewal Authority (the Board)
adopted Resolution No. 091 to create a committee to participate in the process of identifying candidates for
new legal counsel for the Fort Collins Urban Renewal Authority (the Authority), including conducting interviews
of those candidates and making a recommendation to the Board for the Board’s selection of new legal counsel
(Selection Committee). The Selection Committee includes Chair Wade Troxell, Vice Chair Gerry Horak,
Commissioner Ray Martinez and Commissioner Bob Overbeck.
Staff posted the Request for Proposals (RFP) to solicit interest from attorneys to act as legal counsel to the
Authority and Board. The RFP was posted from August 10 through August 31, 2018. Staff reviewed seven
responses and generated a short list of three candidates for the Selection Committee to review and to conduct
interviews.
The Selection Committee has interviewed the short list of candidates and conferred, as a result they are
submitting their recommended candidate for consideration by the full Board. Due to the timing of the
interviews, the recommended candidate is not available at the time this report is being printed and distributed
to the Board; therefore, the Resolution includes a blank for the candidate’s name to be inserted at the meeting.
The Resolution also authorizes the Executive Director to enter into a professional services agreement for the
legal service to be provided to the Authority with the recommended candidate.
CITY FINANCIAL IMPACTS
Outside legal council will increase the operating costs of the Authority. This cost is projected to range between
$40,000 and $50,000 annually based on historic use of the City Attorney’s Office. This cost has not been
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Agenda Item 2
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incurred by the Authority previously, except when specifically related to a project, which costs were then
reimbursed to the Authority by the project developer.
ATTACHMENTS
1. Powerpoint presentation (PDF)
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1
URA Outside Legal Services
Josh Birks
10-12-18
ATTACHMENT 1
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Attachment: Powerpoint presentation (7204 : URA Legal Services)
Action Requested
Urban Renewal Authority – Select Outside Legal Services
§ Direct Selection Committee to interview firms and make
recommendation to board
§ Authorize Executive Director to negotiate and execute a contractual
agreement with the selected firm.
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Attachment: Powerpoint presentation (7204 : URA Legal Services)
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RESOLUTION NO. 092
OF THE BOARD OF COMMISSIONERS OF THE FORT COLLINS URBAN
RENEWAL AUTHORITY APPOINTING THE AUTHORITY’S NEW LEGAL
COUNSEL AND AUTHORIZING THE EXECUTIVE DIRECTOR TO ENTER
INTO A PROFESSSIONAL SERVICES AGREEMENT FOR THE LEGAL
SERVICES TO BE PROVIDED BY THAT LEGAL COUNSEL
WHEREAS, on August 24, 2018, the Board of Commissioners of the Fort Collins Urban
Renewal Authority (the “Board”) adopted Resolution No. 091 to create an ad hoc committee to
participate in the process of identifying candidates for new legal counsel for the Fort Collins
Urban Renewal Authority (the “Authority’), including conducting interviews of those candidates
and making a recommendation to the Board for the Board’s selection of new legal counsel
(“Selection Committee”) ; and
WHEREAS, the Board appointed four commissioners in Resolution No. 091 to serve on
the Selection Committee, Chair Wade Troxell, Vice Chair Gerry Horak, Commissioner Ray
Martinez and Commissioner Bob Overbeck; and
WHEREAS, Authority staff issued a request for proposals for these new legal services
(the “RFP”) and received seven proposals, which proposals were reviewed by staff and narrowed
down to three proposals for the Selection Committee to review and to conduct interviews of the
proposers; and
WHEREAS, the Selection Committee has conducted its interviews of the proposers and
is recommending that the Board appoint and retain __________________________________ as
the Authority’s new legal counsel and to authorize to Executive Director to enter into a
professional services agreement for the legal services to be provide to the Authority by
_________________________.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS
OF THE FORT COLLINS URBAN RENEWAL AUTHORITY that
_________________________ is hereby appointed as the Authority’s new legal counsel and the
Executive Director is authorized to enter into a professional services agreement with
____________________________________ on behalf of the Authority on terms and conditions
consistent with the RFP and ______________________ proposal and on such other terms and
conditions as the Executive Director determines are necessary to protect the Authority’s
interests.
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Passed and adopted at a regular meeting of the Board of Commissioners of the City of
Fort Collins Urban Renewal Authority this 12th day of October, A.D. 2018.
_________________________________
Chair
ATTEST:
_____________________________
Secretary
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Agenda Item 3
Item # 3 Page 1
AGENDA ITEM SUMMARY October 12, 2018
Urban Renewal Authority Board
STAFF
Josh Birks, Economic Health Director
John Duval, Legal
SUBJECT
Public Hearing and Resolution No. 093 Adopting the 2019 Budget for the Fort Collins Urban Renewal
Authority.
EXECUTIVE SUMMARY
The purpose of this item is to adopt the 2019 budget and to appropriate the funds to be spent for the Fort
Collins Urban Renewal Authority (URA), comprised of the North College Tax Increment Financing (TIF)
District, the Prospect South TIF District, and the Foothills TIF District. The budget revenues include property
and sales tax increment, and interest earned on investments for a total of $5,593,535. Budget expenses
include general operations, project obligations and debt service payments, totaling $5,867,677. The 2019
budget corresponds to the budget that was submitted and approved as part of the Budgeting for Outcomes
process for 2019 and 2020. The URA’s 2019 annual appropriation is $5,867,677 including $300,000 of
reserves from the North College District.
STAFF RECOMMENDATION
Staff recommends adoption of the Resolution.
BACKGROUND / DISCUSSION
The Fort Collins Urban Renewal Authority (URA) currently includes three tax increment districts (the Districts)
in two plan areas. These districts include:
• North College - Formed in 2004, North College TIF District is the first tax increment district in the City. It
receives property tax increment revenue only, has an outstanding bond, and several other contractual
obligations. The North College TIF District will continue to collect tax increment through 2029.
• Prospect South - Formed in 2011, Prospect South TIF District is the first tax increment district in the
Midtown Urban Renewal Plan (Midtown URP). It receives property tax increment revenue only, has an
outstanding loan from the City, and several other contractual obligations. The South Prospect TIF District
will continue to collect tax increment through 2036.
• Foothills - Formed in 2013, the Foothills TIF District is the second tax increment district in the Midtown
urban renewal plan. It receives both property tax and sales tax increment revenue, which is all pledged to
the Foothills Metropolitan District as part of the Foothills Mall redevelopment project. The Foothills TIF
District will continue to collect tax increment through 2038.
Revenues
The URA is a separate governmental entity from the City of Fort Collins (City). As such, it relies on revenues
generated from property and sales tax increment collections, as well as interest earned on investments, to
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Agenda Item 3
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cover its annual expenses and debt payments. Property tax increment is determined by the County Assessor’s
Office. The Assessor’s Office certifies property value and tax collection for the next year in December. The
revenues forecast in the 2019 URA Budget rely on the December 2017 certification due to the lag in property
valuations.
The budgeted revenues by District are summarized below and in Table 1:
• North College - The property tax increment budgeted in 2019 is $1,820,910.
• Prospect South - The property tax increment budgeted in 2019 is $533.434.
• Foothills - The increment budgeted is $2,429,393 of property tax and $809,798 of sales tax for a
total of $3,239,191.
Table 1
Estimated Revenue, 2019
District Property Tax Sales Tax
Investment
Interest
Total
North College $ 1,799,193 $ - $ 21,717 $ 1,820,910
Prospect South $ 518,118 $ - $ 15,316 $ 533,434
Foothills $ 2,429,393 $ 809,798 $ - $ 3,239,191
Total $ 4,746,704 $ 809,798 $ 37,033 $ 5,593,535
ANNUAL OPERATIONS
The operating expenses of the URA are managed through a subaccount of the North College TIF District. This
arrangement is the result of timing, legacy accounting practices, and the City’s budget and accounting tools.
Despite being labelled in the accounting system as part of North College TIF District the funds are managed
separately. Each of the Districts contributes towards the annual operational expenses of the URA. Throughout
the year, expenses accrue in the subaccount. At the end of the year, URA staff, along with support from the
City’s finance department, reconciles each District’s contribution to expenses.
Annual Operational expenses are budgeted at $570,999 in 2019. The increase in operational expenses is
primarily due to the increase in staff (added a Redevelopment Manager) and added costs associated with
board expansion. Both expenses are the direct result of regulatory changes, specifically those associated with
House Bill 1348, that led to the expansion of the board, meaningful, yet time consuming, collaboration with
underlying taxing entities, and increased process associated with management of the URA and formation of
new plan areas.
Annual expenses include as summarized in Table 2:
• Staffing - The 2019 URA Budget includes funding for 2.0 full time equivalent (FTE) positions. These FTE
are distributed in the following manner: 0.25 FTE Economic Health and Redevelopment Director, 1.0 FTE
Redevelopment Manager (new position), and 0.75 FTE Redevelopment Coordinator. The budgeted cost of
salaries, wages, and benefits totals $283,042 in 2019.
• Board Expenses - In 2018, the URA board expanded to include representatives from the County, the
School Districts, Special Districts, and one council appointed position. As a result, URA Board meetings
now occur outside of City Council’s normal meeting times and dates. Therefore, the URA must fund costs
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associated with recording the meetings, transcribing minutes, and managing the agenda previously
included as part of the preparation and coverage of a City Council meeting. Costs include, Fort Collins TV,
Clerk Support, Meeting Meals, and hourly administrative support for a total of $35,500 budgeted in 2019.
• Legal Representation - New to the 2019 URA Budget is a line item for legal representation. This change
is a direct result of the board expanding to include four additional members. The budgeted amount for this
cost is $50,923 annually.
• Consulting Support Services - Each year the URA budget includes funds for consulting support services
to cover a variety of costs ranging from consultant review of a financial pro forma submitted by a developer
(typically reimbursed but require advance appropriation) to engineering assistance to evaluate a potential
public improvement project. Staff manages these funds judiciously with any unused funds return to the
URA balance at the end of the year. The 2019 budget includes approximately $37,850 in consulting
support services.
• Other Expenses - The URA also covers incidental costs associated with 2.0 FTE, including phone lines,
travel and mileage, and supplies. In addition, the URA has expenses associated with maintaining the
website, sponsorships and partnerships, etc. These expenses form the balance of the URA operating
budget or $25,469.
• Larimer County Administrative Fees - Larimer County charges all entities receiving property tax an
administrative fee. All three Districts pay these fees and the total for all three is budgeted as $138,215 in
2019.
Table 2
Budgeted Operating Expenses, 2019
Item Amount
Salaries, Wages, & Benefits $ 283,042
Board Support $ 35,500
Legal Representation $ 50,923
Professional Services $ 37,850
Other $ 25,469
County Admin Fee $ 138,215
Total $ 570,999
DEBTS AND OBLIGATIONS
Each year the URA has debt and obligation payments due. These payments are associated with tax increment
assistance provided by the URA to various projects. The payments include bond payments (North College and
Foothills TIF Districts), redevelopment and/or project agreements, and City loan and shareback payments.
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The obligations vary by District, are fully funded by the tax increment received by each District and
summarized in Table 3.
North College TIF District Debt/Obligation Payments
The North College TIF District has several outstanding obligations at a total cost of $1,273,619 in 2019:
• North College Bond - Issued in 2013, this bond refinanced several outstanding loans between the URA
and the City, which provided the capital used to support several early projects within the District. The
annual bond payment is $944,363 in 2019.
• City Loan (Innosphere) - In 2010, the URA borrowed funds from the City to support the development of
the Innosphere (formerly known as, the Rocky Mountain Innovation Initiative) building. The annual loan
payment is $273,295 in 2019.
• Other Developer Obligations -The URA has aided several projects since issuing the 2013 Bond. These
obligations have been structured as annual payments directly to the developer versus one-time up-front
payments. As a result, there is a potential total of $183,211 in developer obligations budgeted in 2019.
Prospect South TIF District Debt/Obligation Payments
The Prospect South TIF District has two primary outstanding obligations at a total cost of $416,534 in 2019:
• Prospect Station - In 2014, the URA aided the Prospect Station project. The assistance was split into two
pieces: (a) an upfront lump sum funded by a loan from the City, and (b) a multi-year payment. Together,
these commitments support the project. Therefore, each year the URA funds both a loan payment
($17,459), and a direct project payment ($11,762) for a total of $29,221 in payments in 2019.
• The State (formerly Capstone or The Summit) - In 2012, the URA borrowed funds from the City to
support the development of The State, a multi-story student housing project on the site of a former mobile
home park. The terms of the loan include two parts: (a) an annual loan payment, and (b) a shareback
agreement with the City in consideration of receiving a discounted interest rate on the City loan. The
annual loan payment is $279,811 and the projected shareback payment is $107,502 for a total of $378,313
in 2019.
Foothills TIF District Debt/Obligation Payments
The Foothills District has one outstanding obligation:
• Pledged Revenue to Foothills Metro District Bond - In 2013, the URA aided the Foothills Mall
redevelopment project by pledging property tax and sales tax increment to the Foothills Metropolitan
District. These revenues, combined with other revenue sources (Metro District property taxes and Public
Improvement Fee), support the District’s bond payment. In 2019, the pledge revenue is $3,174,675
comprised of $2,383,925 in property tax increment and $809,798 in sales tax increment.
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Agenda Item 3
Item # 3 Page 5
Table 3
Budgeted Debts and Obligations, 2019
Obligation
Bond or
City Loan
Project Cost
Or Pledge
City
Shareback
Total
Bond $ 948,963 $ - $ - $ 948,963
Innosphere $ 273,295 $ - $ - $ 273,295
Other Obligations $ - $ 183,211 $ - $ 183,211
Subtotal $ 1,222,258 $ 183,211 $ - $ 1,405,469
Prospect Station $ 17,459 $ 11,762 $ - $ 29,221
Capstone $ 279,811 $ - $ 107,502 $ 387,313
Subtotal $ 297,270 $ 11,762 $ 107,502 $ 416,534
Foothills $ - $ 3,174,675 $ - $ 3,174,675
Total $ 1,519,528 $ 3,369,648 $ 107,502 $ 4,996,678
North College
Prospect South
One-Time Expenditures
In 2019, the URA will contribute $300,000 towards the design of a storm water system on the west side of
College Avenue in the North College TIF District. The storm water system will provide an efficient regional
solution to existing storm water challenges inhibiting the development of the area. These costs will be funded
from North College TIF District reserves.
FINANCIAL IMPACTS
This Resolution includes an annual appropriation for 2019 of $5,867,677 for the North College, Prospect
South, and Foothills TIF Districts. Any specific appropriations related to URA participation in projects will be
presented to the URA Board separately so that the URA funding is approved on a project-by-project basis.
BOARD / COMMISSION RECOMMENDATION
URA staff anticipates providing an annual update to the URA Finance Committee at an upcoming meeting. No
other board or commission outreach has been conducted on this item.
PUBLIC OUTREACH
Outreach conducted as part of broader Budgeting for Outcomes process as part of developing the City
Manager’s recommended budget for 2019/2020.
ATTACHMENTS
1. Powerpoint presentation (PDF)
3
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1
2019 Urban Renewal Authority Budget
Josh Birks
10-12-18
ATTACHMENT 1
3.1
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Attachment: Powerpoint presentation (7182 : URA Budget 2019)
Budget Process
2
§ Follows the City’s Budgeting for Outcomes process
§ Treats URA as City Department
§ Affects treatment of loans
§ Results in negative fund balances
§ All Operating Expenses managed through the North
College Budget
3.1
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Attachment: Powerpoint presentation (7182 : URA Budget 2019)
Budget Mechanisms
3
Operating
Budget
North College
TIF District
Prospect South
TIF District
Foothills
TIF District
Debt &
Obligations
Debt &
Obligations
Debt &
Obligations
Larimer County – Tax Increment
3.1
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Attachment: Powerpoint presentation (7182 : URA Budget 2019)
Revenues
4
District Property Tax Sales Tax Investment
Interest Total
North College $ 1,799,193 $ - $ 21,717 $ 1,820,910
Prospect South $ 518,118 $ - $ 15,316 $ 533,434
Foothills $ 2,429,393 $ 809,798 $ - $ 3,239,191
Total $ 4,746,704 $ 809,798 $ 37,033 $ 5,593,535
3.1
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Attachment: Powerpoint presentation (7182 : URA Budget 2019)
Operating Expenses
Cost Increases:
§ Added Staff
§ Board Support
§ Legal Services
§ County Admin Fees
5
Item Amount
Salaries, Wages, & Benefits $ 283,042
Board Support $ 35,500
Legal Representation $ 50,923
Professional Services $ 37,850
Other $ 25,469
County Admin Fee $ 138,215
Total $ 570,999
3.1
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Attachment: Powerpoint presentation (7182 : URA Budget 2019)
Debts & Obligations: North College
6
Obligation Bond or
City Loan
Project Cost
Or Pledge
City
Shareback Total
Bond $ 948,963 $ - $ - $ 948,963
Innosphere $ 273,295 $ - $ - $ 273,295
Other Obligations $ - $ 183,211 $ - $ 183,211
Subtotal $ 1,222,258 $ 183,211 $ - $ 1,405,469
North College
3.1
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Attachment: Powerpoint presentation (7182 : URA Budget 2019)
Debts & Obligations: Prospect South
7
Obligation Bond or
City Loan
Project Cost
Or Pledge
City
Shareback Total
Prospect Station $ 17,459 $ 11,762 $ - $ 29,221
Capstone $ 279,811 $ - $ 107,502 $ 387,313
Subtotal $ 297,270 $ 11,762 $ 107,502 $ 416,534
Prospect South
3.1
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Attachment: Powerpoint presentation (7182 : URA Budget 2019)
Debts & Obligations: Combined
8
Obligation Bond or
City Loan
Project Cost
Or Pledge
City
Shareback Total
Subtotal $ 1,222,258 $ 183,211 $ - $ 1,405,469
Subtotal $ 297,270 $ 11,762 $ 107,502 $ 416,534
Foothills $ - $ 3,174,675 $ - $ 3,174,675
Total $ 1,519,528 $ 3,369,648 $ 107,502 $ 4,996,678
North College
Prospect South
3.1
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Attachment: Powerpoint presentation (7182 : URA Budget 2019)
One Time Expenditures
§ North College Storm
Water System
Design
§ 2019 - $300,000
§ City Contribution:
$667,800
9
3.1
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Attachment: Powerpoint presentation (7182 : URA Budget 2019)
Staff Recommendation
Staff Recommends adoption of the Resolution
1. Staff suggests reviewing the current budget approach &
process
§ Share recommendations with the Board regarding changes
2. Staff will update the board on budget and cashflows for
each district after the review
10
3.1
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Attachment: Powerpoint presentation (7182 : URA Budget 2019)
-1-
RESOLUTION NO. 093
OF THE BOARD OF COMMISSIONERS OF THE
FORT COLLINS URBAN RENEWAL AUTHORITY
ADOPTING THE 2019 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, on July 9, 2018, membership on the Board was expanded by four additional
commissioners who were appointed to the Board as required by Colorado’s Urban Renewal Law,
C.R.S. Section 31-25-101, et seq. (“Urban Renewal Law”); and
WHEREAS, the URA operates to eliminate blight and prevent the spread of blight within
urban renewal areas in accordance with the Urban Renewal Law; and
WHEREAS, the URA currently has three approved urban renewal plan areas that collect
tax increment revenues and have annual expenditures, and these are known as the North College
District, the Foothills District and the Prospect South District (collectively, the “Districts”); and
WHEREAS, the Board has considered a proposed budget for fiscal year 2019 for each of
the Districts and it wishes to adopt them as the URA’s fiscal year 2019 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
2019 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 2019 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
WHEREAS, attached as Exhibit “C” and incorporated herein are the Foothills District’s
2019 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
WHEREAS, attached as Exhibit “D” and incorporated herein are the Prospect South
District’s 2019 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
Packet Pg. 32
-2-
WHEREAS, the Budget Message, the North College District Budget, the Foothills
District Budget and the Prospect South District Budget shall be collectively referred to as the
“2019 URA Budget”; and
WHEREAS, notice of the 2019 Budget was published in the Fort Collins Coloradoan on
September 30, 2018, as required in Section 29-1-106 of the Budget Law, and such notice is
hereby approved and ratified by the Board.
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 2019 URA Budget is hereby approved and the revenue amounts stated
therein are appropriated for expenditure as stated in the 2019 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 2019 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 12th day of October A.D. 2018.
____________________________________
Chair
ATTEST:
_________________________________
Secretary
Packet Pg. 33
EXHIBIT A
Fort Collins Urban Renewal Authority (URA) Budget Message for Fiscal Year 2019
Budget Features:
The URA’s 2019 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, and the Foothills District. The
budget revenues include property and sales tax increment, and interest earned on investments and
budget expenses include general operations, project obligations and debt service payments.
The URA aims to deliver services which achieve those objectives specified by the individual urban
renewal plans for the North College District, Prospect South District and Foothills District. 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.
Budgetary Basis of Accounting: The URA budget and fund financial statements are prepared on the
modified accrual basis of accounting.
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Attachment: Exhibit A (7207 : URA Budget 2019 RES)
EXHIBIT B
North College Urban Renewal Plan Area
Estimated Revenue:
Tax Increment Collections $ 1,799,193
Interest on Investments $ 21,717
Total estimated Revenue for the URA $ 1,820,910
Expenses:
Operations
General Operations $ 430,705
Larimer County Fee $ 62,948
Developer Obligations $ 183,211
One-Time Stormwater Contribution $ 300,000
Total Operational Costs $ 976,864
Annual Debt Service Payments
2013 Bond Payment $ 948,963
Rocky Mountain Innosphere $ 273,295
Total Debt Service Payments $ 1,222,258
Fund 800 2018 Budget $ 2,199,122
URBAN RENEWAL AUTHORITY
NORTH COLLEGE DISTRICT
2019 BUDGET
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Attachment: Exhibit B (7207 : URA Budget 2019 RES)
$1,593,176 $1,888,095 ($501,319) ($622,004) ($792,372)
1,457,830 1,689,687 1,491,660 1,799,193 1,835,177
81,680 20,537 10,303 21,717 22,662
Total Revenues $1,539,511 $1,710,224 $1,501,963 $1,820,910 $1,857,839
Total Other Financing Sources $0 $0 $0 $0 $0
$1,539,511 $1,710,224 $1,501,963 $1,820,910 $1,857,839
129,596 127,173 113,053 302,542 310,950
31,396 125,022 179,339 172,221 172,899
0 2,800,041 0 183,211 219,292
4,661 16,010 8,883 11,790 11,790
479 549 1,000 7,100 7,100
00000
Total Expenditures $166,132 $3,068,795 $302,275 $676,864 $722,031
1,078,461 4,299,571 1,220,108 1,222,258 1,217,657
0 0 303,000 300,000 0
Total Other Financing Uses $1,078,461 $4,299,571 $1,523,108 $1,522,258 $1,217,657
$1,244,592 $7,368,366 $1,825,383 $2,199,122 $1,939,688
$294,919 ($5,658,142) ($323,420) ($378,212) ($81,849)
Net Adjustments to GAAP $0 $3,268,728 $202,735 $207,844 $213,081
Ending Fund Balance $1,888,095 ($501,319) ($622,004) ($792,372) ($661,140)
Frozen Appropriations not included in this Fund Statement
Capital Outlay
Other Financing Uses
Debt & Other Uses
Transfers Out
Total Expenditures & Other Financing Use
Net Change in Fund Balance
Supplies
Beginning Fund Balance
Revenues
Property Taxes
Interest Revenue
Other Financing Sources
Total Revenues & Other Financing Sources
Expenditures
Personnel Services
Purchased Prof & Tech Services
Purchased Property Services
Other Purchased Services
URA - N. COLLEGE DISTRICT - 800
COMPARATIVE BUDGET STATEMENT
ACTUAL
2016
ACTUAL
2017
BUDGET
2018
BUDGET
2019
BUDGET
2020
2
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Attachment: Exhibit B (7207 : URA Budget 2019 RES)
EXHIBIT C
Midtown Urban Renewal Plan Area (Foothills TIF District)
Estimated Revenue:
Tax Increment Collections $ 2,429,393
Interest on Investments $ -
Property Tax Increment $ 809,798
Total estimated Revenue for the URA $ 3,239,191
Expenses:
Operations
Larimer County Fee $ 64,516
Total Operational Costs $ 64,516
Annual Debt Service Payments
Foothills Metro District Bond $ 3,174,675
Total Debt Service Payments $ 3,174,675
Fund 803 2018 Budget $ 3,239,191
URBAN RENEWAL AUTHORITY
FOOTHILLS DISTRICT
2019 BUDGET
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Attachment: Exhibit C (7207 : URA Budget 2019 RES)
($2,891) ($2,891) $15,373 $29,220 $29,220
0 1,246,223 3,482,234 2,429,393 2,754,740
0 205,255 737,931 809,798 822,844
4,499 0 0 0 0
0 (56) 0 0 0
Total Revenues $4,499 $1,451,422 $4,220,165 $3,239,191 $3,577,584
$4,499 $1,451,422 $4,220,165 $3,239,191 $3,577,584
4,499 24,924 14,759 64,516 71,175
0 1,408,234 4,191,559 3,174,675 3,506,409
Total Expenditures $4,499 $1,433,158 $4,206,318 $3,239,191 $3,577,584
$4,499 $1,433,158 $4,206,318 $3,239,191 $3,577,584
$0 $18,264 $13,847 $0 $0
Ending Fund Balance ($2,891) $15,373 $29,220 $29,220 $29,220
Frozen Appropriations not included in this Fund Statement
Total Revenues & Other Financing Sources
Expenditures
Purchased Prof & Tech Services
Purchased Property Services
Total Expenditures & Other Financing Use
Net Change in Fund Balance
Beginning Fund Balance
Revenues
Property Taxes
Sales & Use Tax
Other Charges for Service
Interest Revenue
URA - MALL FUND - 803
COMPARATIVE BUDGET STATEMENT
ACTUAL
2016
ACTUAL
2017
BUDGET
2018
BUDGET
2019
BUDGET
2020
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Attachment: Exhibit C (7207 : URA Budget 2019 RES)
EXHIBIT D
Midtown Urban Renewal Plan Area (Prospect South TIF District)
Estimated Revenue:
Tax Increment Collections $ 518,118
Interest on Investments $ 15,316
Total estimated Revenue for the URA $ 533,434
Expenses:
Operations
Larimer County Fee $ 10,751
Developer Obligations $ 11,762
Other Professional Services $ 2,079
Total Operational Costs $ 24,592
Annual Debt Service Payments
Capstone $ 279,811
Prospect Station $ 17,459
Revenue Sharing with City (Capstone) $ 107,502
Total Debt Service Payments $ 404,772
Fund 801 2018 Budget $ 429,364
URBAN RENEWAL AUTHORITY
PROSPECT SOUTH DISTRICT
2019 BUDGET
4
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Attachment: Exhibit D (7207 : URA Budget 2019 RES)
($4,435,238) ($4,831,618) ($4,610,847) ($4,374,421) ($3,985,329)
445,852 480,883 458,856 518,118 528,480
5,689 3,743 15,944 15,316 15,982
Total Revenues $451,540 $484,626 $474,800 $533,434 $544,462
Total Other Financing Sources $0 $0 $0 $0 $0
$451,540 $484,626 $474,800 $533,434 $544,462
8,917 9,618 11,677 2,079 2,142
610,043 11,762 11,762 11,762 11,762
Total Expenditures $618,960 $21,380 $23,439 $13,841 $13,904
377,547 395,063 377,224 415,523 424,594
Total Other Financing Uses $377,547 $395,063 $377,224 $415,523 $424,594
$996,507 $416,442 $400,663 $429,364 $438,498
($544,967) $68,184 $74,137 $104,070 $105,964
Net Adjustments to GAAP $148,587 $152,587 $162,289 $285,022 $298,701
($4,831,618)($4,610,847)($4,374,421)($3,985,329)($3,580,664)
Total Revenues & Other Financing Sources
URA - PROSPECT SOUTH TIF DIST - 801
COMPARATIVE BUDGET STATEMENT
ACTUAL
2016
ACTUAL
2017
BUDGET
2018
BUDGET
2019
BUDGET
2020
Beginning Fund Balance
Revenues
Property Taxes
Interest Revenue
Other Financing Sources
Net Change in Fund Balance
Ending Fund Balance
Frozen Appropriations not included in this Fund Statement
Expenditures
Purchased Prof & Tech Services
Purchased Property Services
Other Financing Uses
Debt & Other Uses
Total Expenditures & Other Financing Use
4
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Attachment: Exhibit D (7207 : URA Budget 2019 RES)
Agenda Item 4
Item # 4 Page 1
AGENDA ITEM SUMMARY October 12, 2018
Urban Renewal Authority Board
STAFF
Josh Birks, Economic Health Director
John Duval, Legal
SUBJECT
Draft Drake and College Urban Renewal Plan.
EXECUTIVE SUMMARY
The purpose of this item is to obtain feedback from the Urban Renewal Authority Board on the preliminary draft
of the Drake and College Urban Renewal Plan. The Board’s input will be combined with input from the taxing
entities and public to generate updates and revisions to the Plan.
QUESTIONS FOR THE BOARD
1. Does the Board support the Plan objectives?
2. Does the Board have input on the public improvements to be funded with Tax Increment?
3. What additional information, if any, should the Council have prior to consideration of the Plan?
BACKGROUND / DISCUSSION
PLAN OVERVIEW
The College and Drake Urban Renewal Plan (Plan) is an urban renewal plan prepared for the Fort Collins Urban
Renewal Authority (Authority) and the City of Fort Collins (City), pursuant to the provisions of the Urban Renewal
Law, CRS § 31-25-101 et seq. (Urban Renewal Law). Unless otherwise stated, terms used in this Plan have the
same meaning as in the Urban Renewal Law. The proposed Plan is attached for review. (Attachment 1)
Description of the Plan Area
The Plan Area is approximately 30 acres and contains 13 parcels, including right-of-way. The City of Fort Collins
Structure Plan identifies this area as a General Commercial District. The City of Fort Collins Zoning Map indicates
this area is zoned as a General Commercial District and is also in a Transit-Oriented Development Overlay Zone.
The boundary of the Plan Area to which this Plan applies generally includes those properties located within the
area bounded by:
• South College Avenue to the east
• West Thunderbird Drive to the south
• McClelland Drive to the west
• The north exterior wall of the vacant K-Mart property to the north.
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Agenda Item 4
Item # 4 Page 2
Description of the Tax Increment Financing District
The proposed College and Drake Tax Increment Financing District has the same boundaries as the Plan Area.
PLAN GOALS AND OBJECTIVES
The overall objective of this Plan is to remediate unfavorable existing blight conditions and prevent further
deterioration by implementation of the relevant provisions contained in the following documents:
• City Plan (City of Fort Collins Comprehensive Plan), 2011
• Midtown Plan, 2013
• City of Fort Collins Master Street Plan, 2013
• City of Fort Collins Transportation Master Plan, 2011
The Plan is intended to stimulate private sector development and redevelopment in and around the Plan Area with
a combination of private investment, Authority financing, and public investment. The Plan will assist progress
toward the following additional objectives:
• 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, including
vacancy, underutilization, and underinvestment.
• To implement the Comprehensive Plan and its related elements.
• To leverage reinvestment and development outcomes to redevelop and rehabilitate the area in a manner that
is compatible with and complementary to community goals and objectives for the Plan Area.
• To effectively utilize undeveloped and underdeveloped land.
• To improve pedestrian, bicycle, vehicular and transit-related circulation and safety.
• To encourage the rehabilitation and redevelopment of outmoded buildings, improvements, and conditions.
• To facilitate the enforcement of the laws and regulations applicable to the Plan Area.
• To accommodate project opportunities to eliminate blight, and when such opportunities exist, to take action
within the financial, legal, and political limits of the Authority to acquire land, demolish and remove structures,
provide relocation benefits, and pursue redevelopment, improvement, and rehabilitation projects.
• To provide a range of financing mechanisms to incent investment, including utilizing incremental taxes derived
from within the Plan Area to enable enhanced development outcomes, both public and private.
• To ultimately contribute to increased revenues for all taxing entities.
AUTHORIZED URBAN RENEWAL POWERS
To support progress toward the outlined objectives, the Authority may undertake any of the following renewal
activities, as deemed appropriate for the elimination or prevention of blight factors within the Plan Area,
pursuant to the Urban Renewal Law:
• Public Improvements and Facilities
• Cooperative Agreements
• Purchase of Property
• Demolition, Clearance, Environmental Remediation, and Site Preparation
• Property Disposition
• Redevelopment Agreements
• Relocation Assistance
• Catalyst and Enhancement Projects
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Agenda Item 4
Item # 4 Page 3
ANTICIPATED URBAN RENEWAL ACTIVITIES
Anticipated activities within the proposed Plan Area include: (1) redevelopment of the vacant K-Mart property north
of Drake Road as a grocery superstore and (2) redevelopment of the Spradley Barr Mazda auto dealership site
south of Drake Road as an urban mixed-use development. The Plan also anticipates public infrastructure
improvements to support these redevelopment activities as well as to support the continued viability of existing
commercial uses in the Plan Area as further detailed below.
PUBLIC IMPROVEMENT PRIORITIES
The Authority may, or may not cooperate with others to, install, construct, and reconstruct any public
improvements to promote the objectives of the Plan as authorized by the Urban Renewal Law. Public projects are
intended to stimulate (directly and indirectly) investment in and around the Plan Area. It is the intent of this Plan
that the combination of public and private investment that may be necessary to advance the objectives stated
herein, assist in the investment and reinvestment of the Plan Area, and thereby contribute to the overall economic
well-being of the community.
Senior City Planning and Engineering staff have identified a preliminary list of eligible public improvements for
the Plan Area, as shown in Error! Reference source not found.1. These improvements are grouped in three
categories, as follows:
• Development Related – Improvements required to be built by the two private redevelopment projects.
• Plan Area Improvements – Improvements that address blighted conditions and improve the overall Plan Area
environment but are not specifically needed or required by the anticipated private development activity.
• Additional Opportunities – Improvements that are either long term, lower priority, or require additional study
compared to the other listed improvements.
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Agenda Item 4
Item # 4 Page 4
Table 1
Potential Eligible Public Improvements
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Agenda Item 4
Item # 4 Page 5
KEY DATES
A summary schedule of the Plan review process is attached. (Attachment 2) This schedule is subject to
change based on several factors.
Below is a summary of key dates in the schedule:
• Late September to Early November – A series of meetings with the Plan Review Committee to review
the Plan and the Fiscal Impact Model resulting in recommendations for tax allocations. These meetings are
still being scheduled as a result dates in the schedule are meant to be representative only.
• October 10, 2018 – Public Open House to solicit comments and feedback on the Plan, scheduled for 6:00
to 8:00 pm at the Christ United Methodist Church, 301 E. Drake Road.
• November 9, 2018 – Target date to present preliminary draft IGAs defining the tax increment allocation to
each of the affected entities.
• November 15, 2018 – Planning and Zoning Board Public Hearing to review the proposed Plan for
consistency with Land Use Code and the Comprehensive Plan.
• Late November to Early December – A series of dates, each affected tax entity’s board will consider
approved of a tax allocation IGA.
• December 20, 2018 – The URA Board considers approving the tax allocation IGAs.
• January 15, 2019 – City Council conducts a public hearing to consider approval of the Plan.
FINANCIAL IMPACTS
The proposed College and Drake Urban Renewal Plan will enable the collection of both property and sales tax
increment. Preliminary estimates of property tax increment total $20.3 million over the 25-year period.
Preliminary estimates of sales tax increment total $633,000 annually – based on the City’s general fund sales
tax rate of 2.25 percent. These estimates do not include any adjustment for tax increment allocations to the
underlying tax entities (e.g., Larimer County, Poudre School District, etc.). Therefore, these estimates are only
illustrative and anticipated to change significantly before the plan is formally adopted by City Council in
January.
BOARD / COMMISSION RECOMMENDATION
City Council will consider a resolution to refer the draft College and Drake Urban Renewal Plan to the Planning
and Zoning Board at its regularly scheduled meeting on Tuesday, November 6, 2018.
PUBLIC OUTREACH
A public open house is scheduled on Wednesday, October 10, 2018 from 6:00 to 8:00 pm at the Christ United
Methodist Church, 301 East Drake Road.
ATTACHMENTS
1. College and Drake Urban Renewal Plan (draft) (PDF)
2. Key Dates By Entity (PDF)
3. Powerpoint presentation (PDF)
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Draft Report
College and Drake
Urban Renewal Plan
Prepared for:
City of Fort Collins and
Fort Collins Urban Renewal Authority
Prepared by:
Economic & Planning Systems, Inc.
September 7, 2018
EPS #173061
ATTACHMENT 1
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Table of Contents
1. INTRODUCTION .................................................................................................... 1
2. BLIGHT CONDITIONS ............................................................................................. 1
3. PLAN GOALS AND CONFORMANCE ............................................................................... 4
Plan Goals and Objectives .......................................................................................... 4
Plan Conformance ..................................................................................................... 5
4. AUTHORIZED URBAN RENEWAL POWERS ....................................................................... 8
Public Improvements and Facilities .............................................................................. 8
Cooperative Agreements ............................................................................................ 8
Purchase of Property ................................................................................................. 8
Demolition, Clearance, Environmental Remediation, and Site Preparation ........................ 9
Property Disposition .................................................................................................. 9
Redevelopment Agreements ....................................................................................... 9
Relocation Assistance ................................................................................................ 9
Hiring ...................................................................................................................... 9
Legal Authority ....................................................................................................... 10
Catalyst and Enhancement Projects ........................................................................... 10
5. ANTICIPATED URBAN RENEWAL ACTIVITIES ................................................................. 11
Private Project Investments ..................................................................................... 11
Public Improvement Priorities ................................................................................... 14
6. PROJECT FINANCING ............................................................................................ 16
Property Tax Increment Financing (TIF) ..................................................................... 16
Sales Tax Increment Financing ................................................................................. 22
Tax Increment Reimbursements ............................................................................... 26
7. MODIFICATIONS TO THE PLAN ................................................................................. 27
8. SEVERABILITY AND REASONABLE VARIATIONS .............................................................. 28
9. EFFECTIVE DATE OF THE PLAN................................................................................. 29
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List of Tables
Table 1 Proposed Grocery-Anchored Development Summary (August 2018) ..................... 11
Table 2 Proposed Mixed-Use Development Summary (August 2018) ................................ 12
Table 3 Eligible Public Improvements ........................................................................... 15
Table 4 Plan Area Existing and Estimated Property Tax Values ........................................ 19
Table 5 Property Tax Increment Revenues by Taxing District .......................................... 20
Table 6 Estimated Taxable Sales ................................................................................. 24
Table 7 Estimated Sales Tax Revenue .......................................................................... 25
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List of Figures
Figure 1 College and Drake Urban Renewal Plan Area and TIF District ................................. 3
Figure 2 Proposed Grocery-Anchored Development Concept Plan (May 2018) ..................... 12
Figure 3 Proposed Mixed-Use Development Concept Plan (August 2018) ........................... 13
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1. INTRODUCTION
The College and Drake Urban Renewal Plan (“Plan”) is an urban renewal plan prepared for the
Fort Collins Urban Renewal Authority (“Authority”) and the City of Fort Collins (“City”), pursuant
to the provisions of the Urban Renewal Law, Colo. Rev. Stat. § 31-25-101 et seq. (“Urban
Renewal Law”). Unless otherwise stated, terms used in this plan have the same meaning as in
the Urban Renewal Law.
The jurisdictional boundaries of the Authority are the same as the boundaries of the City. Within
the City boundaries there may be one or more urban renewal plan areas. This Plan describes the
framework for certain public undertakings constituting urban renewal projects and other
authorized activities under the Urban Renewal Law in the College and Drake Urban Renewal Plan
Area (“Plan Area”), located in the City of Fort Collins, Larimer County, Colorado.
This Plan was prepared for adoption by the City Council in recognition that the College and Drake
area requires a coordinated, cooperative strategy, with financing possibilities, to eliminate
unfavorable existing conditions and prevent further deterioration. This Plan intends to accomplish
the City’s development objectives for improving the overall condition of this area by creation of
the Plan Area.
The driving interest in the establishment of this Plan is to enable the use of tax increment
financing (TIF) as a tool to stimulate and leverage both public and private sector development,
including redevelopment, to help remedy adverse conditions and prevent the spread of further
deterioration. It is the intent of this Plan for any development projects and other implementation
actions to be done in a responsive manner, with full consideration for interests and concerns of
property owners in the Plan Area. This Plan effort originated in response to two proposals for
private development in the Plan Area. While these two projects are anticipated to occur in the
near term, additional development and redevelopment may occur incrementally over a period of
time, with the potential for the Authority to engage in additional redevelopment activities at a
faster pace than might occur otherwise.
The Plan has been made available to City of Fort Collins residents. Input was solicited of area
residents, property owners, and business owners and tenants prior to completion of the Plan.
Notifications of public hearings and an open house was provided to property owners, tenants,
and residents within and surrounding the study area stating the following: time, date, place, and
a description of the Plan and its general scope.
Meetings were held before the Planning and Zoning Board and City Council in Fall 2018 to receive
comments and input on this Plan. To the extent provided in Colorado Public Records Act, Colo.
Rev. Stat. Title 24, Article 72, Part 2 as the same may be amended from time to time, and
pursuant to policies adopted by the Authority, project plans and proposals will be made available
to the public.
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Economic & Planning Systems, Inc. 2 Draft Report
Description of the Plan Area
The Plan Area is approximately 30 acres and contains 13 parcels, including right-of-way. The City
of Fort Collins Structure Plan identifies this area as a General Commercial District. The City of
Fort Collins Zoning Map indicates this area is zoned as a General Commercial District and is also
in a Transit-Oriented Development Overlay Zone.
The boundary of the Plan Area to which this Plan applies generally includes those properties
located within the area bounded by:
• South College Avenue to the east;
• West Thunderbird Drive to the south;
• McClelland Drive to the west; and
• The north exterior wall of the vacant K-Mart property to the north.
The Plan Area is depicted on the Boundary Map in Figure 1 on the following page. A legal
description of the area is attached as Appendix A.
Description of the Tax Increment Financing District
The College and Drake Tax Increment Financing District has the same boundaries as the Plan
Area, and is depicted on the Boundary Map shown in Figure 1 on the following page. A legal
description of the district is attached as Appendix A.
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Figure 1
College and Drake Urban Renewal Plan Area and TIF District
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2. BLIGHT CONDITIONS
Before an urban renewal plan can be adopted by the City, there must be a determination that an
area constitutes a blighted area. This determination depends upon the presence of several
physical, environmental, and social factors. Blight is attributable to a multiplicity of conditions
which, in combination, tend to accelerate the phenomenon of deterioration of an area. The
definition of a blighted area is premised upon the definition articulated in the Urban Renewal Law
(C.R.S. § 31-25-103) as follows:
“Blighted area” means an area that, in its present condition and use and, by reason of
the presence of at least four of the following factors, substantially impairs or arrests the
sound growth of the municipality, retards the provision of housing accommodations, or
constitutes an economic or social liability, and is a menace to the public health, safety,
morals, or welfare:
a. Slum, deteriorated, or deteriorating structures;
b. Predominance of defective or inadequate street layout;
c. Faulty lot layout in relation to size, adequacy, accessibility, or usefulness;
d Unsanitary or unsafe conditions;
e Deterioration of site or other improvements;
f. Unusual topography or inadequate public improvements or utilities;
g. Defective or unusual conditions of title rendering the title nonmarketable;
h. The existence of conditions that endanger life or property by fire and other causes;
i. Buildings that are unsafe or unhealthy for persons to live or work in because of building
code violations, dilapidation, deterioration, defective design, physical construction, or
faulty or inadequate facilities;
j. Environmental contamination of buildings or property;
k.5 The existence of health, safety, or welfare factors requiring high levels of municipal
services or substantial physical underutilization or vacancy of sites, building, or other
improvements; or
l. If there is no objection by the property owner or owners and the tenant or tenants of
such owner or owners, if any, to the inclusion of such property in an urban renewal area,
"blighted area" also means an area that, in its present condition and use and, by reason
of the presence of any one of the factors specified in paragraphs (a) to (k.5) of this
subsection (2), substantially impairs or arrests the sound growth of the municipality,
retards the provision of housing accommodations, or constitutes an economic or social
liability, and is a menace to the public health, safety, morals, or welfare. For purposes of
this paragraph (l), the fact that an owner of an interest in such property does not object
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to the inclusion of such property in the urban renewal area does not mean that the owner
has waived any rights of such owner in connection with laws governing condemnation.
To use the powers of eminent domain, the definition of “blighted” is broadened to require that
five of the eleven blight factors must be present (C.R.S. § 31-25-105.2(2)(a)(I)):
(a) “Blighted area” shall have the same meaning as set forth in section 31-25-103 (2);
except that, for the purposes of this section only, “blighted area” means an area that, in
its present condition and use and, by reason of the presence of at least five of the factors
specified in section 31-25-103 (2)(a) to (2)(l), substantially impairs or arrests the sound
growth of the municipality, retards the provision of housing accommodations, or
constitutes an economic or social liability, and is a menace to the public health, safety,
morals, or welfare.
In addition to the State statute, several principles have been developed by Colorado courts to
guide the determination of whether an area constitutes a blighted area under the Urban Renewal
Law. First, the absence of widespread violation of building and health codes does not, by itself,
preclude a finding of blight. The definition of “blighted area” contained in the Urban Renewal Law
is broad and encompasses not only those areas containing properties so dilapidated as to justify
condemnation as nuisances, but also envisions the prevention of deterioration” (Tracy v. City of
Boulder, 635 P.2d 907, 909 (Colo. Ct. App. 1981)).
Second, the presence of one well maintained building does not defeat a determination that an
area constitutes a blighted area. A determination of blight is based upon an area “taken as a
whole,” and not on a building-by-building basis (Interstate Trust Building Co. v. Denver Urban
Renewal Authority, 473 P.2d 978, 981 (Colo. 1970)).
Third, a governing body’s “determination as to whether an area is blighted….is a legislative
question and the scope of review by the judiciary is restricted” (Tracy, 635 P.2d at 909). A
court’s role in reviewing such a blight determination is simply to independently verify if the
conclusion is based upon factual evidence determined by the City Council at the time of a public
hearing to be consistent with the statutory definition.
The methodology used to prepare the College and Drake Existing Conditions Survey involved the
following steps: (i) identify parcels to be included in the Plan Area; (ii) gather information about
the properties and infrastructure within the Plan Area boundaries; (iii) evaluate evidence of blight
through field reconnaissance; and, (iv) record observed and documented conditions listed as
blight factors in State Statute. The entire College and Drake Existing Conditions Survey is
included as Appendix B of this report.
Based on the evidence presented at a public hearing, and in the College and Drake Existing
Conditions Survey dated July 2018, the City Council, by Resolution ***, made a finding that the
Plan Area was “blighted” as defined by the Urban Renewal Law, by the existence of the following
six factors:
(a) Slum, deteriorated, or deteriorating structures.
(b) Predominance of defective or inadequate street layout.
(d) Unsanitary or unsafe conditions.
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(e) Deterioration of site or other improvements.
(f) Unusual topography or inadequate public improvements or utilities.
(k.5) The existence of health, safety, or welfare factors requiring high levels of municipal
services or substantial physical underutilization or vacancy of sites, buildings, or other
improvements.
The City Council also found that these factors, taken together, substantially impair the sound
growth of the City, constitute an economic and social liability, and negatively affect the public
health, safety and welfare of the community. Based on evidence of the “blighted” factors, the
Plan Area is appropriate for authorized activities of the Authority pursuant to the Urban Renewal
Law.
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3. PLAN GOALS AND CONFORMANCE
Plan Goals and Objectives
The overall objective of this Plan is to remediate unfavorable existing conditions and prevent
further deterioration by implementation of the relevant provisions contained in the following
documents:
• City Plan (City of Fort Collins Comprehensive Plan), 2011
• Midtown Plan, 2013
• City of Fort Collins Master Street Plan, 2013
• City of Fort Collins Transportation Master Plan, 2011
The Plan is intended to stimulate private sector development and redevelopment in and around
the Plan Area with a combination of private investment, Authority financing, and public
investment. The Plan will assist progress toward the following additional objectives:
• 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, including vacancy, underutilization, and underinvestment.
• To implement the Comprehensive Plan and its related elements.
• To leverage reinvestment and development outcomes to redevelop and rehabilitate the area
in a manner that is compatible with and complementary to community goals and objectives
for the Plan Area.
• To effectively utilize undeveloped and underdeveloped land.
• To improve pedestrian, bicycle, vehicular and transit-related circulation and safety.
• To encourage the rehabilitation and redevelopment of outmoded buildings, improvements,
and conditions.
• To facilitate the enforcement of the laws and regulations applicable to the Plan Area.
• To accommodate project opportunities to eliminate blight, and when such opportunities exist,
to take action within the financial, legal, and political limits of the Authority to acquire land,
demolish and remove structures, provide relocation benefits, and pursue redevelopment,
improvement, and rehabilitation projects.
• To provide a range of financing mechanisms to incent investment, including utilizing
incremental taxes derived from within the Plan Area to enable enhanced development
outcomes, both public and private.
• To ultimately contribute to increased revenues for all taxing entities.
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Plan Conformance
Urban Renewal Law
This Plan is in conformity with and subject to the applicable statutory requirements of the
Colorado Urban Renewal Law Revised Statutes.
City Plan
The City’s adopted Comprehensive Plan, known as City Plan, describes desirable land use and
transportation patterns, with goals and policies for those topics along with community appearance
and design, the environment, open lands, housing, the economy, and growth management.
The City of Fort Collins is currently updating City Plan, scheduled to be completed in early 2019.
This Plan is intended to provide the mechanisms to facilitate implementation of City Plan, and
therefore it is in direct conformance with the current City Plan and is not anticipated to conflict
with the updated plan. The following excerpts from the existing City Plan highlight the linkage
between City Plan and this Urban Renewal Plan. These are representative excerpts, and not an
all-inclusive list of relevant statements:
City Plan. Policy EH 4.1 - Prioritize Targeted Redevelopment Areas. Create and utilize
strategies and plans, as described in the Community and Neighborhood Livability and
Neighborhood chapter’s Infill and Redevelopment section, to support redevelopment areas and
prevent areas from becoming blighted. The Targeted Infill and Redevelopment Areas (depicted
on Figure LIV 1 in the Community and Neighborhood Livability chapter) shall be a priority for
future development, capital investment, and public incentives.
City Plan. Policy LIV 5.1 - Encourage Targeted Redevelopment and Infill. Encourage
redevelopment and infill in Activity Centers and Targeted Infill and Redevelopment Areas
identified on the Targeted Infill and Redevelopment Areas Map (See Figure LIV 1). The purpose
of these areas is to:
• Promote the revitalization of existing, underutilized commercial and industrial areas.
• Concentrate higher density housing and mixed-use development in locations that are
currently or will be served by high frequency transit in the future and that can support higher
levels of activity.
• Channel development where it will be beneficial and can best improve access to jobs,
housing, and services with fewer and shorter auto trips.
• Promote reinvestment in areas where infrastructure already exists.
• Increase economic activity in the area to benefit existing residents and businesses and,
where necessary, provide the stimulus to redevelop.
City Plan. Policy LIV 5.2 - Target Public Investment along the Community Spine.
Together, many of the Targeted Redevelopment Areas and Activity Centers form the “community
spine” of the city along College Avenue and the Mason Corridor. The “community spine” shall be
considered the highest priority area for public investment in streetscape and urban design
improvements and other infrastructure upgrades to support infill and redevelopment and to
promote the corridor’s transition to a series of transit-supportive, mixed-use activity centers over
time.
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Other Notable City Plan Concepts
• Policy LIV 30.6 - Reduce Land Devoted to Surface Parking Lots. Support transit use
and a more pedestrian-friendly environment, reduce land devoted to surface parking lots as
infill and redevelopment occur.
• Policy LIV 31.1 - Relationship of Commercial District Uses. Encourage and concentrate
active uses and vertical mixed-use at key intersections.
• Policy LIV 31.5 - Incorporate Public Spaces and Community Facilities. Incorporate
mixture of type and scale public spaces, such as plazas, courtyards, urban pocket parks.
• Key Theme - Provide Transit-Oriented Activity Centers. “Focal points and centers of
activity”, with “higher intensities”, and a high-quality pedestrian and transit orientated
environment.
• Key Theme - Reduce Carbon Emissions. Through support of a “compact development
pattern, an interconnected transit system, multiple means of travel, [and] transit-oriented
activity centers”.
Midtown Plan
City Council adopted the Midtown Plan on October 1, 2013, which establishes guidelines for
future redevelopment of the Midtown Area—a major economic engine in the City—in compliance
with the adopted City Plan. The Midtown Plan seeks to complement current and forthcoming
investment by developing a vision and associated land use tools to guide the design of future
redevelopment, and identify opportunities to further enhance streetscapes and multi-modal
connectivity. The Plan Area is located in the Upper Midtown Character Area in the Midtown Plan.
This Urban Renewal Plan is in conformance with the following concepts from the Midtown Plan:
• Improved Internal Circulation - Internal streets should be developed that provide access
between properties at a slower, calmer pace that is inviting to business and residential users.
• Incent New Investment - “Incentivize new investment and enact policies” for implementation
that aligns with the Plan’s vision.
• Vitality - Midtown will be a vital corridor with a mix of uses and activities.
• Craft a parking strategy that supports increased densities.
• Promote optimum use of the MAX Bus Rapid Transit system.
Midtown in Motion
The Midtown in Motion transportation design plan for College Avenue was adopted by City
Council in October of 2014, encompassing College Avenue from Prospect Road to Harmony Road.
The design plan addresses College Avenue, the adjacent frontage roads, and connections to the
Mason Bus Rapid Transit (BRT) stations. Midtown in Motion is an implementation element
stemming from the City of Fort Collins Transportation Master Plan and the Midtown Plan. The
following concepts included in Midtown in Motion support this Urban Renewal Plan:
• Improving safety for all modes of travel.
• Providing bicycle circulation options.
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• Enhancing pedestrian circulation across College Avenue and to MAX BRT.
• Ensuring mobility and accessibility for people of all ages and abilities.
• Utilizing frontage and circulation roads to provide business access.
• Creating beautiful, identifiable, and unique design.
• Identifying funding and building partnerships.
Development Standards and Procedures
All development within the Plan Area shall conform to the Land Use Code and any site specific
zoning regulations or policies which might impact properties, all as in effect and as may be
amended from time to time. While the Urban Renewal Law authorizes the Authority to undertake
zoning and planning activities to regulate land use, maximum densities, and building
requirements in the Plan Area, the City will regulate land use and building requirements through
existing municipal codes and ordinances.
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4. AUTHORIZED URBAN RENEWAL POWERS
To support progress toward the outlined objectives, the Authority may undertake any of the
following renewal activities, as deemed appropriate for the elimination or prevention of blight
factors within the Plan Area, pursuant to the Urban Renewal Law:
Public Improvements and Facilities
The Authority may cause, finance or facilitate the design, installation, construction and
reconstruction of public improvements in the Plan Area. In order to promote the effective
utilization of undeveloped and underdeveloped land in the Plan Area, the Authority may, among
other things, enter into financial or other agreements with the City of Fort Collins to provide the
City with financial or other support in order to encourage or cause the City to invest funds for the
improvement of storm drainage; street, transit, and pedestrian access conditions; and other
infrastructure deficiencies in the Plan Area.
Cooperative Agreements
For the purposes of planning and implementing this Plan, the Authority may enter into one or
more cooperative agreements with the City or other public entities. Such agreement may include
provisions regarding project financing and implementation; design, location, construction of
public improvements; revenue sharing or other measures approved by the Authority to offset
Urban Renewal Project impacts on improvements or services; and any other matters required to
implement this Plan. Potential entities include but are not limited to: Xcel Energy, CenturyLink,
Comcast, Poudre Valley Fire Authority, and Fort Collins-Loveland Water District.
Purchase of Property
In the event that the Authority finds it necessary to purchase any real property for an urban
renewal project to remedy blight factors pursuant to the Urban Renewal Law and this Plan, the
Authority may do so by any legal means available, including the exercise of the power of eminent
domain, pursuant to the Urban Renewal Law. If the power of eminent domain is to be exercised
for the purpose of transfer of property to another private person or entity, the Authority’s
decision whether to acquire the property through eminent domain shall be guided by the
following criteria, with the understanding that these guidelines shall not be construed to
constrain the Authority’s legal ability to exercise the power of eminent domain:
• All requirements of the Urban Renewal Law, including eminent domain procedures, have
been met.
• Other possible alternatives have been thoroughly considered by the Authority.
• Good faith negotiations by the Authority and/or the project developers have been rejected by
the property owner.
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• Reasonable efforts have been undertaken to: (a) understand and address the property
owner’s position and his or her desires for the property and for any existing business on the
site, and (b) work with the owner to either include the owner in project planning or purchase
the property and relocate the owner in accordance with the Urban Renewal Law on terms and
conditions acceptable to the owner.
Demolition, Clearance, Environmental Remediation,
and Site Preparation
The Authority may, on a case-by-case basis, elect to demolish or to cooperate with others to
clear buildings, structures, and other improvements. Development activities consistent with this
Plan may require such demolition and clearance to eliminate unhealthy, unsanitary, and unsafe
conditions, eliminate obsolete and other uses detrimental to the public welfare, and otherwise
remove and prevent the spread of deterioration.
Property Disposition
The Authority may sell, lease, or otherwise transfer real property or any interest in real property
subject to covenants, conditions and restrictions, including architectural and design controls,
time restrictions on development, and building requirements, as it deems necessary to develop
such property.
Redevelopment Agreements
The Authority may enter into redevelopment agreements with property owners or developers in
the Plan Area to facilitate participation and assistance that the Authority may choose to provide
to such owners or developers. These may include provisions regarding project planning, public
improvements, financing, design, and any other matters allowed pursuant to the Urban Renewal
Law.
Relocation Assistance
It is not expected that the activities of the Authority will displace any person, family, or business.
However, to the extent that in the future the Authority may purchase property causing
displacement of any person, family, or business, it shall develop a relocation program to assist
any such party in finding another location pursuant to the Urban Renewal Law, and provide
relocation benefits consistent with the Urban Renewal Law. There shall be no displacement of
any person or business without there being in place a relocation program, which program shall
become a part of this Plan when adopted.
Hiring
The Authority may employ consultants, agents, and employees, permanent and temporary, and
it shall determine their qualifications, duties, and compensation.
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Legal Authority
The Authority may also exercise all other powers given to it under the Urban Renewal Law.
Catalyst and Enhancement Projects
There may also be opportunity for rehabilitation and redevelopment of the properties
surrounding the Plan Area that will continue to foster cleanup, preservation and redevelopment
of nearby properties. Additional public infrastructure, not limited to pedestrian amenities,
enhanced landscaping, public transportation improvements, public utilities, or public art and
architectural features as well as access to services, meeting facilities and shopping options may
also further redevelopment of the Plan Area.
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5. ANTICIPATED URBAN RENEWAL ACTIVITIES
Anticipated activities within the Urban Renewal Plan Area include: (1) redevelopment of the
vacant K-Mart property north of Drake Road as a grocery superstore and (2) redevelopment of
the Spradley Barr Mazda auto dealership site south of Drake Road as an urban mixed use
development. The Plan also anticipates public infrastructure improvements to support these
redevelopment activities as well as to support the continued viability of existing commercial uses
in the Plan Area as further detailed below.
Private Project Investments
Proposed Grocery-Anchored Development
A King Soopers grocery-anchored development is been proposed for the Dillon Companies/
Kroger owned parcels on the northwest corner of Drake Road and College Avenue, currently
containing the vacant K-Mart structure. This proposed development includes a 92,000 square
foot King Soopers Marketplace and 8,100 square feet of ancillary retail store space, as shown in
Table 1. This project would involve the relocation of an existing King Soopers store, currently
located 0.2 miles to the north of the parcel. The existing fuel station on the site would remain
and be rebranded as a King Soopers fuel station. The existing 5,500 square foot Jiffy Lube Auto
Center at the southeast corner of the site would also remain, as shown in Figure 2.
Table 1
Proposed Grocery-Anchored Development Summary (August 2018)
The proposal includes 373 parking spaces dedicated to the development (including 8 cart
corrals), as well as 60 spaces of parking dedicated for MAX BRT located just west of the proposed
supermarket under an existing easement. The site plan is currently in the planning stages,
however there is a desire for the development to “urbanize around the fringe” to enhance the
public spaces and urban elements in the area.
Description Size
Dillon Companies Property
Grocery (King Soopers) 92,000 sq. ft.
Ancillary Retail 8,100 sq. ft.
Existing Retail 5,500 sq. ft.
Parking 433 spaces
Source: Economic & Planning Systems
H:\173061-Fort Collins Urban Renewal Authority\Data\[173061- Development Plan
Summary.xlsx]Dev Program Summary
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Attachment: College and Drake Urban Renewal Plan (draft) (7183 : Draft Drake & College Urban Renewal Plan)
College and Drake Urban Renewal Plan
September 7, 2018
Economic & Planning Systems, Inc. 12 Draft Report
Figure 2
Proposed Grocery-Anchored Development Concept Plan (May 2018)
Proposed Mixed-Use Development
A mixed-use development is proposed for
the Dracol owned parcels on the southwest
corner of Drake Road and College Avenue,
currently containing the Spradley-Barr
Mazda dealership and service center. The
proposed development would include 17,200
square feet of retail in three structures, a
110-room hotel, and two multifamily
apartment buildings with a total of 190
residential units, as shown in Table 2. The
design of the development is oriented
towards the street, with landscaping around
the edge and parking internal to the site, as
shown in Figure 3.
Table 2
Proposed Mixed-Use Development Summary
(August 2018)
Description Size
Dracol Property
Residential
Building A 99 units
Building B 91 units
Retail 17,200 sq. ft.
Hotel 110 rooms
Source: Economic & Planning Systems
4.1
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Attachment: College and Drake Urban Renewal Plan (draft) (7183 : Draft Drake & College Urban Renewal Plan)
College and Drake Urban Renewal Plan
September 7, 2018
Economic & Planning Systems, Inc. 13 Draft Report
Figure 3
Proposed Mixed-Use Development Concept Plan (August 2018)
4.1
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Attachment: College and Drake Urban Renewal Plan (draft) (7183 : Draft Drake & College Urban Renewal
College and Drake Urban Renewal Plan
September 7, 2018
Economic & Planning Systems, Inc. 14 Draft Report
Public Improvement Priorities
The Authority may, or may not cooperate with others to, install, construct, and reconstruct any
public improvements for the purpose of promoting the objectives of the Plan and the Urban
Renewal Law. Public projects are intended to stimulate (directly and indirectly) investment in and
around the Plan Area. It is the intent of this Plan that the combination of public and private
investment that may be necessary to advance the objectives stated herein will assist in the
investment and reinvestment of the Plan Area and thereby contribute to the overall economic
wellbeing of the community.
Eligible Public Improvements
Senior City Planning and Engineering staff have identified a preliminary list of eligible public
improvements for the Plan Area, as shown in Table 3. These improvements are grouped in three
categories, as follows:
1. Development Related – These Category 1 improvements include improvements that are
required to be built to implement the two private redevelopment projects proposed to be built in
the near term. These improvements are anticipated to be built and paid for by the private
developer; however some tax increment investments may be needed to address project
feasibility.
2. Plan Area Improvements – These Category 2 improvements include public improvements
that address blighted conditions and improve the overall Plan Area environment, but are not
specifically needed or required by the anticipated private development activity. These
improvements are expected to be paid for by TIF and/or other public funds.
3. Additional Opportunities – These Category 3 improvements include other Plan Area
improvements that are either more long term, lower priority, or require additional study
compared to those listed in Category 2. One or more of these projects could move up in priority
if future conditions and needs change.
4.1
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Attachment: College and Drake Urban Renewal Plan (draft) (7183 : Draft Drake & College Urban Renewal Plan)
College and Drake Urban Renewal Plan
September 7, 2018
Economic & Planning Systems, Inc. 15 Draft Report
Table 3
Eligible Public Improvements
1. Development-related Estimated Cost
1 Dual left turns EB Drake to NB College $707,900
2 Pork Chop (Pedestrian Refuge) islands at Drake and College $201,200
3 Relocating College Ave street lights from medians to outside
edges (based on college and prospect estimate)
$219,600
4 Bus stop improvements on Drake near MAX (4 total) $24,000
5 Detached sidewalks with landscaped parkways $838,300
6 Access / turn lane / approach improvements on Drake between
College and Redwing
TBD
7 Drake ductile water line replacement TBD
8 Mid-block left turns between College and McClelland TBD
Subtotal $1,991,000
2. Plan Area Improvements Estimated Cost
1 Signs and pavement markings (included as percentage in each
estimate)
TBD
2 Color concrete crosswalks at Drake and College (4 total) $87,300
3 New traffic signal system at Drake and College $300,000
4 Landscaped medians per current Streetscape standards $452,700
5 Extend concrete pavement limits on Drake, for approaches to
College (R.O.W estimate)
$1,079,800
6 College Avenue stormwater inlet replacements TBD
7 East side of College multi-use path TBD
Subtotal $1,919,800
3. Additional Opportunities Estimated Cost
1 Outside of URA area, access / turn lane improvements on Drake
between College and Harvard Street?
TBD
2 WB to SB (future) TBD
3 Bay Road Improvements (CSU Campus Master Plan) TBD
4 Bike/ped grade separation of Mason Trail at Drake (top tier
project identified in recently completed Master Plan study)
TBD
5 Drake MAX Station Parking Structure $7,000,000
Subtotal $7,000,000
Total $10,910,800
H:\173061-Fort Collins Urban Renewal Authority\Data\[Public Improvements Project List.xlsx]Prioritization Summary For Rpt
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Attachment: College and Drake Urban Renewal Plan (draft) (7183 : Draft Drake & College Urban Renewal Plan)
Economic & Planning Systems, Inc. 16 173061_Draft Report_College and Drake Urban Renewal Plan.docx
6. PROJECT FINANCING
Specific projects may be financed in whole or in part by the Authority, under the tax increment
financing (TIF) provisions of CRS § 31-25-107(9)(a) of the Urban Renewal Law, as amended by
HB 15-1348, or by any other available source of financing authorized to be undertaken by the
Authority pursuant to CRS § 31-25-105 of the Urban Renewal Law. The Authority is authorized to:
• Finance urban renewal projects within the Plan Area with revenues from property tax
increments, sales tax increments, interest income, federal loans or grants, agreements with
public, quasi-public, or private parties and entities, loans or advances from any other
available source, and any other available sources of revenue.
• Issue bonds, including, without limitation, notes or any other financing instruments or
documents in amounts sufficient to finance all or part of the Plan. The principal, interest, and
any premiums due on or in connection with such indebtedness may be paid from property tax
increments, sales tax increments or any other funds, revenues, assets or property legally
available to the Authority.
• Borrow funds and create indebtedness in carrying out this Plan.
• Use any and all financing methods legally available to the City, the Authority, any private
developer, redeveloper, or owner to finance in whole or in part any and all costs, including
without limitation the cost of public improvements, described or anticipated in the Plan or in
any manner related or incidental to the development of the Plan Area. Such methods may be
combined to finance all or part of activities and undertakings throughout the Plan Area.
Property Tax Increment Financing (TIF)
The Authority is specifically authorized to expend Property Tax Increment Revenue (as defined
herein), to the extent authorized by the Urban Renewal Law, the Intergovernmental Agreements,
and this Plan.
This Plan contemplates that the primary method of assisting with financing eligible expenses in
the Plan Area will be through the use of revenues from Property Tax Increment and Sales Tax
Increment. It is the intent of the City Council in approving this Plan to authorize the use of TIF by
the Authority as part of its efforts to advance the vision, objectives, and activities described herein.
Pursuant to the provisions of Section 31-25-107(9) of the Urban Renewal Law, in approving this
Plan, the City Council hereby creates a single Tax Increment Financing District with the same
boundary as the Plan Area. The boundaries of this District shall be as generally described in
Chapter 1, illustrated in Figure 1, and legally described in Appendix A.
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Attachment: College and Drake Urban Renewal Plan (draft) (7183 : Draft Drake & College Urban Renewal Plan)
College and Drake Urban Renewal Plan
September 7, 2018
Economic & Planning Systems, Inc. 17 Draft Report
Property Tax Increment Limitations
A fund for financing projects may be accrued and used by the Authority under the property tax
allocation financing provisions of the Urban Renewal Law. Under this method, property taxes of
specifically designated public bodies, if any, levied after the effective date of the approval of this
Plan upon taxable property in the Plan Area each year or municipal sales taxes collected within
the Plan Area, or both such taxes, by or for the benefit of the designated public body must be
divided for a period not to exceed twenty-five (25) years after the effective date of the adoption
of the tax allocation provision, as follows:
Base Amount – That portion of the taxes which are produced by the levy at the rate fixed each
year by or for such public body upon the valuation for assessment of taxable property in the Plan
Area last certified prior to the effective date of approval of the Plan or, as to an area later added
to the Plan Area, the effective date of the modification of the Plan, shall be paid into the funds of
each such public body as are all other taxes collected by or for said public body.
Increment Amount – That portion of said property taxes in excess of such base amount,
except for that portion of property taxes which are collected on behalf of TAXING ENTITY
pursuant to the terms of the IGA with the Authority, must be allocated to and, when collected,
paid into a special fund of the Authority to pay the principal of, the interest on, and any
premiums due in connection with the bonds of, loans or advances to, or indebtedness incurred
by, whether funded, refunded, assumed, or otherwise, the Authority for financing or refinancing,
in whole or in part, a specific project. Any excess property tax collections not allocated in this
way must be paid into the funds of the municipality or other taxing entity, as applicable.
Unless and until the total valuation for assessment of the taxable property in the Plan Area
exceeds the base valuation for assessment of the taxable property in the Plan Area, all of the
taxes levied upon the taxable property in the Plan Area must be paid into the funds of the
respective public bodies.
When such bonds, loans, advances, and indebtedness, if any, including interest thereon and any
premiums due in connection therewith, have been paid, all taxes upon the taxable property in
the Plan Area must be paid into the funds of the respective public bodies, and all moneys
remaining in the special fund that have not previously been rebated and that originated as
property tax increment generated based on the mill levy of a taxing body, other than the City,
within the boundaries of the Plan Area must be repaid to each taxing body based on the pro rata
share of the prior year’s property tax increment attributable to each taxing body’s current mill
levy in which property taxes were divided. Any moneys remaining in the special fund not
generated by property tax increment are excluded from any such repayment requirement.
Notwithstanding any other provision of law, any additional revenues the City, county, special
district, or school district receives either because the voters have authorized the City, county,
special district, or school district to retain and spend said moneys pursuant to section 20(7)(d) of
Article X of the state constitution subsequent to the creation of this special fund or as a result of
an increase in the property tax mill levy approved by the voters of the City, county, special
district, or school district subsequent to the creation of the special fund, to the extent the total
mill levy of the City, county, special district, or school district exceeds the respective mill levy in
effect at the time of approval or substantial modification of the Plan, are not included in the
amount of the increment that is allocated to and, when collected, paid into the special fund of
the authority.
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Attachment: College and Drake Urban Renewal Plan (draft) (7183 : Draft Drake & College Urban Renewal Plan)
College and Drake Urban Renewal Plan
September 7, 2018
Economic & Planning Systems, Inc. 18 Draft Report
In calculating and making these payments, the County Treasurer may offset the Authority’s pro
rata portion of any property taxes that are paid to the authority under these terms and that are
subsequently refunded to the taxpayer against any subsequent payments due to the authority
for an urban renewal project. The Authority shall make adequate provision for the return of
overpayments in the event that there are not sufficient property taxes due to the Authority to
offset the Authority’s pro rata portion of the refunds. The Authority may establish a reserve fund
for this purpose or enter into an intergovernmental agreement with the municipal governing
body in which the municipality assumes responsibility for the return of the overpayments.
The portion of taxes collected may be irrevocably pledged by the Authority for the payment of
the principal of, the interest on, and any premiums due in connection with such bonds, loans,
advances, and indebtedness. This irrevocable pledge shall not extend to any taxes that are
placed in a reserve fund to be returned to the county for refunds of overpayments by taxpayers
or any reserve funds reserved by the Authority for such purposes in accordance with Section 31-
25-107(9)(a)(III) and (b), C.R.S. The Authority shall set aside and reserve a reasonable amount
as determined by the Authority of all incremental taxes paid to the Authority for payment of
expenses associated with administering the Plan.
At the time of general reassessment of taxable property valuations in Larimer County, including
all or part of the Plan Area subject to division of valuation for assessment between base and
increment, as provided above, the portions of valuations for assessment to be allocated as
provided above shall be proportionately adjusted in accordance with such reassessment or
change. Note that at the time of this Plan adoption, such a general reassessment occurs every
two years, in the odd-numbered years.
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Attachment: College and Drake Urban Renewal Plan (draft) (7183 : Draft Drake & College Urban Renewal Plan)
College and Drake Urban Renewal Plan
September 7, 2018
Economic & Planning Systems, Inc. 19 Draft Report
Property Tax Increment Forecasts
The estimated property tax valuations and Plan Area tax increment associated with the two
proposed redevelopment projects are shown in Table 4 below. The estimated actual value of the
King Soopers project, including the existing retail that will remain onsite, is $13.7 million and the
estimated actual value of the Brinkman Development is $60.4 million, resulting a total of $74.2
million. Including the existing uses in the rest of the Plan Area, the total estimated actual value
for the Plan Area is $75.7 million. The total estimated assessed value of the combined new
developments (Real Property only) is $12.4 million, and for the entire Plan Area is $12.8 million,
as shown.
Table 4
Plan Area Existing and Estimated Property Tax Values
Description Size Value Factor
Estimated
Actual Value
1
Base (2019)
Assessed Value
1
Estimated (2021)
Assessed Value
1
Total Assessed
Value Increment
King Soopers Development
King Soopers 92,000 sq. ft. $110 /sq. ft. $10,120,000 $1,146,602 $2,934,800 $1,788,200
Ancillary Retail 8,100 sq. ft. $269 /sq. ft. $2,180,700 $342,200 $632,398 $290,200
Existing Retail 5,500 sq. ft. Tax Records $1,442,400 $418,296 $418,296 $0
Total $13,743,100 $1,907,100 $3,985,494 $2,078,400
Brinkman Development
Apartments 190 units $220,000 /unit $41,800,000 $3,009,600
Hotel 110 keys $127,288 /room $14,001,700 $4,060,487
Retail 17,200 sq. ft. $269 /sq. ft. $4,630,600 $1,342,869
Total $60,432,300 $1,199,600 $8,412,957 $7,213,400
Other URA Parcels
Retail 2,008 sq. ft.
Service 6,172 sq. ft.
Total $1,487,210 $431,291 $431,291 $0
GRAND TOTAL $75,662,610 $3,537,991 $12,829,741 $9,291,800
1 Real Property
Source: Larimer County Assessor; Economic & Planning Systems
4.1
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Attachment: College and Drake Urban Renewal Plan (draft) (7183 : Draft Drake & College Urban Renewal Plan)
College and Drake Urban Renewal Plan
September 7, 2018
Economic & Planning Systems, Inc. 20 Draft Report
The assessed value of all existing uses in the Plan Area represents the TIF base, which totals
$3.5 million as also shown above. Subtracting the base from the new assessed value provides an
estimate of the net assessed value used in calculating the Plan Area tax increment. The total
assessed value is expected to be approximately $12.8 million when these two projects are
complete in 2020, a net increase of $9.3 million.
The associated tax increment forecasts are shown in Table 5. The forecasts are shown for each
taxing district within the Plan Area and in total. The total annual tax increment is forecast to be
approximately $844,000 in the first year of stabilization in 2021, totaling $20.3 million over the
25-year period of TIF eligibility.
The Poudre Valley School District, with a combined mill levy, comprises the largest component of
the total 25-year TIF at $11.7 million, which is comprised of general fund mill levy of 38.683 and
a Bond Payment mill levy of 13.947 followed by Larimer County with 22.092 mills at $4.9 million.
The City of Fort Collins mill levy is 9.797 and would generate approximately $2.2 million over the
25-year TIF period.
Table 5
Property Tax Increment Revenues by Taxing District
Taxing District Cooperative Agreements
Pursuant to the provisions of Section 31-205-107(9.5)(a) of the Urban Renewal Law, the
Authority has notified the Board of County Commissioners of Larimer County and the governing
boards of all other taxing entities whose incremental property tax revenues would be allocated
under this Plan. Representatives of the Authority and the governing body of each taxing entity
have met and attempted to negotiate an agreement governing the sharing of incremental
property tax revenue allocated to the special fund of the Authority. The agreements address,
without limitation, estimated impacts of the Plan on county or district services associated solely
with the Plan.
Description Mill Levy Tax Liability
Annual Increment
2021-2044 Total
Total Assessed Value Increment $9,291,800 $843,956
Taxing District
Larimer County 22.092 $205,274 $205,274 $4,926,587
City of Fort Collins 9.797 $91,032 $91,032 $2,184,762
Poudre R-1 General Fund 38.683 $359,435 $359,435 $8,626,433
Poudre R-1 Bond Payment 13.947 $129,593 $129,593 $3,110,226
Poudre River Public Library District 3.000 $27,875 $27,875 $669,010
Health District of No. Larimer County 2.167 $20,135 $20,135 $483,248
N. Colorado Water Conservation District 1.000 $9,292 $9,292 $223,003
Larimer County Pest Control District 0.142 $1,319 $1,319 $31,666
Total 90.828 $843,956 $20,254,935
Source: Economic & Planning Systems
H:\173061-Fort Collins Urban Renewal Authority\Models\[173061- Order of Magnitude TIF 9-6-18.xlsx]Property Tax District Detail
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Attachment: College and Drake Urban Renewal Plan (draft) (7183 : Draft Drake & College Urban Renewal Plan)
College and Drake Urban Renewal Plan
September 7, 2018
Economic & Planning Systems, Inc. 21 Draft Report
Any such, shared incremental tax revenues governed by any agreement are limited to all or any
portion of the incremental revenue generated by the taxes levied upon taxable property by the
taxing entity within the area covered by the Plan in addition to any incremental sales tax
revenues generated within the Plan Area by the imposition of the sales tax of the City and, at the
option of any other taxing entity levying a sales tax in the area covered by the Plan, any
incremental sales tax revenues of such other taxing entity that are included within the
agreement.
Copies of this Plan have been provided to all public entities having taxing authority within the
Plan Area for their review and comment. Larimer County received the Impact Report required by
C.R.S. § 31- 25-107(3.5) of the Urban Renewal Law, and all other taxing entities having taxing
authority within the Plan Area received a copy of an Impact Report similar to that required by
C.R.S. § 31-25-107(3.5) of the Urban Renewal Law for counties, which includes information
necessary to comply with HB 15-1348 and SB 16-177 and for the taxing entity to analyze the
proposed Plan. For each taxing entity the Impact Report indicates the current taxes being
generated from the Plan Area, the current proposed development plan, and the proposed capture
of tax increment from the Plan Area as it relates to each taxing entity.
As required by the Urban Renewal Law, the Authority entered into an Intergovernmental
Agreement (“IGA”) with each taxing entity within the Plan Area to set out the terms and
conditions governing the sharing of incremental property tax revenue within the Plan Area.
Intergovernmental agreements authorizing the use of Property Tax Increment within the Plan
Area have been negotiated and approved with the following taxing bodies:
• 1 “NAME OF BODY” Letter Agreement/Intergovernmental Agreement dated DATE
• 2
• 3
The following taxing bodies have not agreed to share Property Tax Increment in support of the
Plan and the incremental property tax revenues generated by their mill levies will not be included
within the revenues the Authority is authorized to receive:
• 1 “NAME OF BODY” Letter Agreement/Intergovernmental Agreement dated DATE
• 2
The following taxing bodies also have not agreed to share Property Tax Increment in support of
the Plan and the incremental property tax revenues generated by their mill levies will not be
included within the revenues the Authority is authorized to receive; however, mediation with
these taxing entities is in process as of the date of approval of the Plan. In the event that
agreement is reached with these taxing bodies, or the findings issued by the mediator allocate
Property Tax Increment from these mill levies to the Authority, the addition of such revenue to
the Special Fund under this Plan shall not be a substantial modification to the Plan.
• 1 “NAME OF BODY” Letter Agreement/Intergovernmental Agreement dated DATE
• 2
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Attachment: College and Drake Urban Renewal Plan (draft) (7183 : Draft Drake & College Urban Renewal Plan)
College and Drake Urban Renewal Plan
September 7, 2018
Economic & Planning Systems, Inc. 22 Draft Report
Sales Tax Increment Financing
The project may also be financed by the Authority under the sales tax allocation financing
provisions of the Urban Renewal Law. The Urban Renewal Law allows that upon the adoption or
amendment of an Urban Renewal Plan, sales taxes flowing to the City may be “frozen” at their
current level. The current level is established based on the previous 12 months prior to the
adoption of this Plan. Thereafter, the City can continue to receive this fixed sales tax revenue.
The Authority thereafter may receive all, or an agreed upon portion of the additional sales taxes
(the increment) that are generated above the base. The Authority may use these incremental
revenues to finance the issuance of bonds, reimburse developers for public improvement costs,
reimburse the City for public improvement costs, and pay off financial obligations and other
debts incurred in the administration of the Plan. This increment is not an additional sales tax, but
rather is a portion of the established tax collected by the City, and the sales tax increment
resulting from redevelopment efforts and activities contemplated in this Plan.
Pursuant to the provisions of Section 31-25-107(9) of the Urban Renewal Law, in approving this
Plan, the City Council specifically authorizes the use of Tax Increment from the 2.25 percent City
general purpose sales tax, and agrees to allow NUMBER percent (x%) of the Sales Tax Increment
generated under this Plan to be received by the Authority to further the goals of the Plan.
City Sales Tax Increment Limitations
A fund for financing projects may be accrued and used by the Authority under the tax allocation
financing provisions of the Urban Renewal Law. Under this method, municipal sales taxes
collected within the Plan Area, by or for the benefit of the designated public body must be
divided for a period not to exceed twenty-five (25) years after the effective date of the adoption
of the tax allocation provision, as follows:
Base Amount – That portion of municipal sales taxes, not including any sales taxes for remote
sales as specified in § 39-26-104 (2), C.R.S., collected within the boundaries of the Plan Area in
the twelve-month period ending on the last day of the month prior to the effective date of
approval of the Plan, shall be paid into the funds of each such public body as are all other taxes
collected by or for said public body.
Increment Amount – All or any portion of said municipal sales taxes in excess of such base
amount, must be allocated to and, when collected, paid into a special fund of the Authority to
pay the principal of, the interest on, and any premiums due in connection with the bonds of,
loans or advances to, or indebtedness incurred by, whether funded, refunded, assumed, or
otherwise, the Authority for financing or refinancing, in whole or in part, a specific project. Any
excess municipal sales tax collections not allocated in this way must be paid into the funds of the
municipality, as applicable.
Unless and until the total municipal sales tax collections in the Plan Area exceed the base year
municipal sales tax collections in the Plan Area, all such sales tax collections must be paid into
the funds of the City.
Notwithstanding any other provision of law, any additional revenues the City, county, special
district, or school district receives because the voters have authorized the City, county, special
district, or school district to retain and spend said moneys pursuant to section 20(7)(d) of Article
4.1
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Attachment: College and Drake Urban Renewal Plan (draft) (7183 : Draft Drake & College Urban Renewal Plan)
College and Drake Urban Renewal Plan
September 7, 2018
Economic & Planning Systems, Inc. 23 Draft Report
X of the state constitution subsequent to the creation of this special fund are not included in the
amount of the increment that is allocated to and, when collected, paid into the special fund of
the authority.
The portion of taxes collected may be irrevocably pledged by the Authority for the payment of
the principal of, the interest on, and any premiums due in connection with such bonds, loans,
advances, and indebtedness. This irrevocable pledge shall not extend to any taxes that are
placed in a reserve fund to be returned to the county for refunds of overpayments by taxpayers
or any reserve funds reserved by the Authority for such purposes in accordance with Section 31-
25-107(9)(a)(III) and (b), C.R.S. The Authority shall set aside and reserve a reasonable amount
as determined by the Authority of all incremental taxes paid to the Authority for payment of
expenses associated with administering the Plan.
In the event there is a change in the sales tax percentage levied in the City including all or part
of the Plan Area subject to division of sales taxes between base and increment, as provided
above, the portions of valuations for sales taxes to be allocated as provided above shall be
proportionately adjusted in accordance with such change.
4.1
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Attachment: College and Drake Urban Renewal Plan (draft) (7183 : Draft Drake & College Urban Renewal Plan)
College and Drake Urban Renewal Plan
September 7, 2018
Economic & Planning Systems, Inc. 24 Draft Report
Sales Tax Increment Forecasts
The City can commit all or a portion of the incremental sales tax revenues from the City’s
general fund sales tax generated by the proposed redevelopment as tax increment. The King
Soopers Marketplace is forecast to generate $46.5 million in annual taxable sales based on
92,000 square feet at an estimated rate of $505 per square foot, as shown in Table 6. Based on
estimates, this average sales rate represents a modest 5 percent increase over the average of
existing grocery stores in Fort Collins of $480 per square foot.
The new 8,100 square feet of ancillary retail space in the King Soopers project is projected to
generate $1.8 million in annual taxable sales, based on an average $225 per square foot for an
unspecified mix of retailers. Similarly, the 17,200 square feet of ancillary space in the Brinkman
redevelopment is projected to generate $3.9 million in annual taxable sales. The total new
taxable sales within the Plan Area is estimated at $52.15 million as shown.
Table 6
Estimated Taxable Sales
Description Size Sales/Sq.Ft Total Sales
Dillon Companies Site
King Soopers1 92,000 sq. ft. $505 $46,460,000
Ancillary Retail 2 8,100 sq. ft. $225 $1,822,500
Dillon Companies Site Total 100,100 sq. ft. $48,282,500
Dracol Site
New Retail 17,200 sq. ft. $225 $3,870,000
Dracol Site Total 17,200 sq. ft. $3,870,000
Total Plan Area Net New $52,152,500
Total Sales Tax @ 2.25% $1,173,431
1 Existing King Soopers S. College store; sales/sq.ft. based on average Fort Collins grocery sales
2 Existing 5,500 sq.ft. of retail on the site is not included
Source: Economic & Planning Systems
H:\173061-Fort Collins Urban Renewal Authority\Models\[Table 6_9-7.xlsx]Table 6
Property
4.1
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Attachment: College and Drake Urban Renewal Plan (draft) (7183 : Draft Drake & College Urban Renewal Plan)
College and Drake Urban Renewal Plan
September 7, 2018
Economic & Planning Systems, Inc. 25 Draft Report
Applying the City’s 2.25 percent sales tax rate to the projected new sales results in an estimated
$1.2 million in annual new sales taxes from the Plan Area. This excludes sales and sales taxes
from existing retail uses within the Plan Area that area expected to remain.
The portion of King Soopers taxable sales and sales taxes that can be considered net new to the
City and potentially eligible for tax increment is shown in Table 7. The 50,000 square foot King
Soopers at 2325 South College is proposed to be closed and replaced by the larger Marketplace
store within the Plan Area. Taxable sales at the existing store are estimated at $24.0 million
based on the 50,000 square foot store size and an average of $480 per square foot in sales (this
equates to the average 2017 annual sales of all Fort Collins grocery stores).
Table 7
Estimated Sales Tax Revenue
This results in annual net new sales of approximately $24.3 million for King Soopers/Dillion site
and $28.2 million for the Plan Area. At the 2.25 percent tax rate, the net new sales taxes would
equal $546,000 per year for the King Soopers site and $633,000 per year for the total Plan Area
as shown.
Description Size Sales/Sq.Ft Total Sales Tax Rate Tax Revenue
Dillon Companies Site
King Soopers 92,000 sq. ft. $505 $46,460,000 2.25% $1,045,350
Ancillary Retail
2 8,100 sq. ft. $225 $1,822,500 2.25% $41,000
Existing Store Sales
1 50,000 sq. ft. $480 $24,000,000 2.25% $540,000
Dillon Companies Site Net New $24,282,500 $546,350
Dracol Site
New Retail 17,200 sq. ft. $225 $3,870,000 2.25% $87,075
Dracol Site Total 17,200 sq. ft. $3,870,000 $87,075
Total Plan Area Net New $28,152,500 $633,425
1
Existing King Soopers S. College store; sales/sq.ft. based on average Fort Collins grocery sales
2
Existing 5,500 sq.ft. of retail on the site is not included
Source: Economic & Planning Systems
H:\173061-Fort Collins Urban Renewal Authority\Models\[173061- Order of Magnitude TIF 9-6-18.xlsx]Sales Tax V2
Property Sales Tax
4.1
Packet Pg. 77
Attachment: College and Drake Urban Renewal Plan (draft) (7183 : Draft Drake & College Urban Renewal Plan)
College and Drake Urban Renewal Plan
September 7, 2018
Economic & Planning Systems, Inc. 26 Draft Report
Tax Increment Reimbursements
Tax increment revenues may be used to reimburse the City and/or a developer for costs incurred
for improvements related to a project to pay the debt incurred by the Authority with such entities
for urban renewal activities and purposes. Tax incremental revenues may also be used to pay
bonded indebtedness, financial obligations, and debts of the authority related to urban renewal
activities under this Plan.
Within the twelve-month period prior to the effective date of the approval or modification of the
Plan requiring the allocation of moneys to the Authority as outlined previously, the City, county,
special district, or school district is entitled to the reimbursement of any moneys that such City,
county, special district, or school district pays to, contributes to, or invests in the Authority for a
project. The reimbursement is to be paid from the special fund of the Authority.
4.1
Packet Pg. 78
Attachment: College and Drake Urban Renewal Plan (draft) (7183 : Draft Drake & College Urban Renewal Plan)
Economic & Planning Systems, Inc. 27 173061_Draft Report_College and Drake Urban Renewal Plan.docx
7. MODIFICATIONS TO THE PLAN
This Plan may be modified pursuant to requirements and procedures set forth in CRS §31-25-
107 of the Urban Renewal Law governing such modifications or amendments to the extent such
modifications or amendments do not conflict with the agreements. Nothing herein shall be
construed to require the Authority to first obtain the permission of any part to an Agreement
prior to amending or modifying this plan.
4.1
Packet Pg. 79
Attachment: College and Drake Urban Renewal Plan (draft) (7183 : Draft Drake & College Urban Renewal Plan)
Economic & Planning Systems, Inc. 28 173061_Draft Report_College and Drake Urban Renewal Plan.docx
8. SEVERABILITY AND REASONABLE VARIATIONS
The Authority shall have the ability to approve reasonable variations (as determined by the
Board) from the strict application of these Plan provisions, so long as such variations reasonable
accommodate the intent and purpose of this Plan and the Urban Renewal Law. Plan provisions
may be altered by market conditions, redevelopment opportunities and/or the needs of the
community affected by the Plan.
If any portion of this Plan is held to be invalid or unenforceable, such invalidity will not affect the
remaining portions of the Plan.
4.1
Packet Pg. 80
Attachment: College and Drake Urban Renewal Plan (draft) (7183 : Draft Drake & College Urban Renewal Plan)
Economic & Planning Systems, Inc. 29 173061_Draft Report_College and Drake Urban Renewal Plan.docx
9. EFFECTIVE DATE OF THE PLAN
This Plan shall be effective upon its final approval by the Fort Collins City Council. Except as
otherwise permitted under the Urban Renewal Law, the term of the TIF period is twenty-five (25)
years from the effective date of the Plan, unless the Authority deems, to the extent consistent
with the terms in the Agreements, that all activities to accomplish the Project have been
completed and all debts incurred to finance such activities and all expenses of the Authority have
been repaid. In that event, the Authority may declare the Plan fully implemented.
4.1
Packet Pg. 81
Attachment: College and Drake Urban Renewal Plan (draft) (7183 : Draft Drake & College Urban Renewal Plan)
Action Item
Plan Area Review
Committee
Tax Entities
Planning & Zoning
Board
URA Finance
Committee
URA Board
Council Finance
Committee
City Council
Urban Renewal Plan Overview & Review 26-Sep-18 12-Oct-18
PUBLIC OPEN HOUSE
Financial Impact Model Review 10-Oct-18 15-Oct-18
Refer Urban Renewal Plan to P&Z 6-Nov-18
TIF Allocation Recommendations 7-Nov-18
Work Session: Review Urban Renewal Plan 9-Nov-18
Distribute TIF Allocation IGAs 9-Nov-18
Public Hearing: Urban Renewal Plan 15-Nov-18
Set Public Hearing for Urban Renewal Plan 4-Dec-18
HEALTH: Review TIF Allocation IGA 27-Nov-18
PSD: Review TIF Allocation IGA 11-Dec-18
COUNTY: Review TIF Allocation IGA 11-Dec-18
LIBRARY: Review TIF Allocation IGA 10-Dec-18
Review TIF Allocations 17-Dec-18 17-Dec-18
Approve TIF Allocation IGAs 20-Dec-18
Public Hearing: Urban Renewal Plan 15-Jan-19
Plan Formation Process
Key Dates by Entity
10-Oct-18
ATTACHMENT 2
4.2
Packet Pg. 82
Attachment: Key Dates By Entity (7183 : Draft Drake & College Urban Renewal Plan)
1
College and Drake Urban Renewal Plan - DRAFT
Josh Birks
10-12-18
ATTACHMENT 3
4.3
Packet Pg. 83
Attachment: Powerpoint presentation (7183 : Draft Drake & College Urban Renewal Plan)
Questions for the Board
1. Does the Board support the Plan objectives?
2. Does the Board have input on the public improvements to be funded
with Tax Increment?
3. What additional information, if any, should the Council have prior to
consideration of the Plan?
2
4.3
Packet Pg. 84
Attachment: Powerpoint presentation (7183 : Draft Drake & College Urban Renewal Plan)
3
MAX King
Soopers
Spradley Barr
4.3
Packet Pg. 85
Attachment: Powerpoint presentation (7183 : Draft Drake & College Urban Renewal Plan)
Alignment
4
4.3
Packet Pg. 86
Attachment: Powerpoint presentation (7183 : Draft Drake & College Urban Renewal Plan)
Plan Objectives
• Redevelopment and New
Development
• Remedy conditions that impair
sound growth of the City
• Implement the Comprehensive
Plan
• Leverage reinvestment
complementary to community
goals
• Effectively utilize undeveloped and
underdeveloped land
5
4.3
Packet Pg. 87
Attachment: Powerpoint presentation (7183 : Draft Drake & College Urban Renewal Plan)
Plan Objectives
• Improve pedestrian, bicycle,
vehicular and transit-related
circulation and safety
• Encourage the rehabilitation and
redevelopment of outmoded
buildings
• Provide financing mechanisms to
incent investment, including TIF
• Contribute to increased revenues
for all taxing entities
6
4.3
Packet Pg. 88
Attachment: Powerpoint presentation (7183 : Draft Drake & College Urban Renewal Plan)
Tax Increment & Use
7
Private
Investment =
Tax Increment
Tax Entity Allocations
Project
Assistance
Plan Area
Improveme
nts
Additional
Options
4.3
Packet Pg. 89
Attachment: Powerpoint presentation (7183 : Draft Drake & College Urban Renewal Plan)
Potential Public Improvements
Development
Related
College & Drake Intersection
Improvements
Pedestrian Safety Enhancements to
College & Drake
Drake Road Improvements
(Redwing to College)
College sidewalk and landscaping
enhancements
Plan Area
Add’l College & Drake Intersection
Improvements
New Traffic Signal College & Drake
College Avenue Stormwater Inlet
Replacement
College Multi-use Path
Enhance College Median
Landscape
Others?
Additional
Opportunities
Bay Road Improvements
Bicycle/Pedestrian Grade Mason
Trail Grade Separated Crossing
Max Station Parking Structure
Others?
8
4.3
Packet Pg. 90
Attachment: Powerpoint presentation (7183 : Draft Drake & College Urban Renewal Plan)
Key Dates
9
PRC REVIEW
Council
Adoption
Jan. 15,
2019
Public
Open House
Oct. 10,
2018
P&Z
Review
Nov. 15,
2018
TAX ALLOCATIONS
URA Board Review (Today)
Board
Approves
Allocations
Dec. 20,
2018
4.3
Packet Pg. 91
Attachment: Powerpoint presentation (7183 : Draft Drake & College Urban Renewal Plan)
Questions for the Board
1. Does the Board support the Plan objectives?
2. Does the Board have input on the public improvements to be funded
with Tax Increment?
3. What additional information, if any, should the Council have prior to
consideration of the Plan?
10
4.3
Packet Pg. 92
Attachment: Powerpoint presentation (7183 : Draft Drake & College Urban Renewal Plan)