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HomeMy WebLinkAboutAgenda - Mail Packet - 2/19/2019 - Urban Renewal Authority Agenda - February 27, 2019City of Fort Collins Page 1 Wade Troxell, Chair Council Information Center Gerry Horak, Vice-Chair City Hall West Susan Gutowsky 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 Carolynne White and Caitlin Quander Darin Atteberry Delynn Coldiron Brownstein Hyatt Farber Shreck Executive Director Secretary The City of Fort Collins will make reasonable accommodations for access to City services, programs, and activities and will make special communication arrangements for persons with disabilities. Please call 221-6515 (V/TDD: Dial 711 for Relay Colorado) for assistance. URBAN RENEWAL AUTHORITY BOARD MEETING February 27, 2019 3:00 PM • PLEDGE OF ALLEGIANCE • CALL MEETING TO ORDER • ROLL CALL • AGENDA REVIEW • Executive Director’s Review of Agenda. • Consent Calendar Review. This Review provides an opportunity for the Board and citizens to pull items from the Consent Calendar. Anyone may request an item on this Calendar be “pulled” off the Consent Calendar and considered separately. ◦ Board-pulled Consent Calendar items will be considered before the Discussion items. ◦ Citizen-pulled Consent Calendar items will be considered after the Discussion items. City of Fort Collins Page 2 • CITIZEN PARTICIPATION Individuals who wish to make comments regarding items remaining on the Consent Calendar or wish to address the Board on items not specifically scheduled on the agenda must first be recognized by the Chair or Vice Chair. Before speaking, please sign in at the table in the back of the room. The timer will buzz once when there are 30 seconds left and the light will turn yellow. The timer will buzz again at the end of the speaker’s time. Each speaker is allowed 3 minutes. If there are more than 6 individuals who wish to speak, the Chairperson may reduce the time allowed for each individual. • State your name and address for the record. • Applause, outbursts or other demonstrations by the audience are not allowed • Keep comments brief; if available, provide a written copy of statement to Secretary • Address your comments to Council, not the audience • CITIZEN PARTICIPATION FOLLOW-UP Consent Calendar This Calendar is intended to allow the Urban Renewal Authority Board to spend its time and energy on the important items on a lengthy agenda. Staff recommends approval of the Consent Calendar. The Consent Calendar consists of resolutions of no perceived controversy and routine administrative actions. 1. Consideration and Approval of the Minutes of the December 20, 2018 Urban Renewal Authority Meeting. The purpose of this item is to approve the minutes from the December 20, 2018 Urban Renewal Authority Board meeting. 2. Resolution No. 094 of the Board of Commissioners of the Fort Collins Urban Renewal Authority Approving an Intergovernmental Agreement with the City of Fort Collins for the Authority's Contribution of Funds to the City's North College Drainage Improvement District Project. The purpose of this item is to present an Intergovernmental Agreement (IGA) between the City of Fort Collins and the Fort Collins Urban Renewal Authority which memorializes the terms of acceptance of $300,000 in Authority support for the City’s continued design of the North College Drainage Improvement District (NCDID), including transportation designs for North Mason Street (Alpine Street to Hickory Street), along with Alpine Street, Pinon Street and Hemlock Street (Mason Street to North College Avenue) (the Project). The 2019 Authority Budget accounted for and appropriated funds for this obligation. In addition, the 2019 City Budget includes additional funding for the Project from two sources in City: Engineering and Stormwater. • CONSENT CALENDAR FOLLOW-UP • STAFF REPORTS • COMMISSIONER REPORTS • CONSIDERATION OF BOARD-PULLED CONSENT ITEMS City of Fort Collins Page 3 Discussion Items The method of debate for discussion items is as follows: ● Chair introduces the item number and subject; asks if formal presentation will be made by staff ● Staff and/or Applicant presentation (optional) ● Chair requests citizen comment on the item (three-minute limit for each citizen) ● Board questions of staff on the item ● Board motion on the item ● Board discussion ● Final Board comments ● Board vote on the item Note: Time limits for individual agenda items may be revised, at the discretion of the Chair, to ensure all citizens have an opportunity to speak. Please sign in at the table in the back of the room. The timer will buzz when there are 30 seconds left and the light will turn yellow. It will buzz again at the end of the speaker’s time. 3. An Update on the Proposed College and Drake Urban Renewal Plan-Anticipated Public Improvements to be Funded from Increment Tax Revenue. (staff: Josh Birks; 10 minute staff presentation; 60 minute discussion) The purpose of this item is to update the Fort Collins Urban Renewal Authority Board on the proposed College and Drake Urban Renewal Plan. The update will focus primarily on the proposed uses of incremental property and sales tax revenues within the Plan. The Board will discuss the proposed list of public improvements and review the prioritization prepared by the Finance Committee and Plan Area Review Committee. 4. Update: Tax Allocation Negotiations and Schedule. (staff: Josh Birks; 5 minute staff presentation; 20 minute discussion) The purpose of this item is to provide the Fort Collins Urban Renewal Authority Board an update on the incremental property tax allocation discussions taking place with the impacted tax entities. Authority staff has been engaging with the entities through the Plan Area Review Committee (PRC) and individually for the past several months. These discussions are beginning to come to a head and staff would like to report on the current status. • CONSIDERATION OF CITIZEN-PULLED CONSENT ITEMS • OTHER BUSINESS • ADJOURNMENT Agenda Item 1 Item # 1 Page 1 AGENDA ITEM SUMMARY February 27, 2019 Urban Renewal Authority Board STAFF Delynn Coldiron, City Clerk SUBJECT Consideration and Approval of the Minutes of the December 20, 2018 Urban Renewal Authority Meeting. EXECUTIVE SUMMARY The purpose of this item is to approve the minutes from the December 20, 2018 Urban Renewal Authority Board meeting. ATTACHMENTS 1. December 20, 2018 (PDF) 1 Packet Pg. 4 City of Fort Collins Page 348 URBAN RENEWAL AUTHORITY BOARD December 20, 2018 9:00 AM • ROLL CALL PRESENT: Smith, Troxell, Cunniff, Martinez, Stephens, Summers, Johnson, Wise ABSENT: Horak, Febvre Staff Present: Atteberry, Coldiron Legal Counsel: Carolynne White and Caitlin Quander (Brownstein Hyatt Farber Shreck) • AGENDA REVIEW Executive Director Atteberry reviewed the agenda. • DISCUSSION ITEMS 1. Consideration and Approval of the Minutes of the October 12, 2018 Urban Renewal Authority Board Meeting. (Adopted) The purpose of this item is to approve the minutes from the October 12, 2018 Urban Renewal Authority Board meeting. Commissioner Martinez made a motion, seconded by Commissioner Stephens, to approve the minutes of the October 12, 2018, Urban Renewal Authority meeting. RESULT: ADOPTED [UNANIMOUS] MOVER: Ray Martinez, District 2 SECONDER: Kristin Stephens, District 4 AYES: Smith, Troxell, Cunniff, Martinez, Stephens, Summers, Johnson, Wise ABSENT: Horak, Febvre 2. Spradley Barr Redevelopment Overview. (No Action Taken) The purpose of this item is to discuss a proposed redevelopment at the southwest corner of College Avenue and Drake Road, specifically to explore support from the Fort Collins Urban Renewal Authority (“URA“) in the form of Tax Increment Financing (“TIF”). Brinkman, the developer, will present details regarding the redevelopment to the URA Board. The developer has requested this opportunity to engage with the Board because they will continue to incur significant due diligence and planning costs before the Board can make a final determination on support. No Board decision will be made as a result of this discussion and the Board will not be obligated to support the project when presented to the Board in the future. Josh Birks, Economic Health and Redevelopment Director, encouraged the Commissioners to consider whether the proposed project delivers on the URA goals and objectives for the area and to consider what additional information they need prior to acting on any tax increment support for the project. He briefly outlined the boundaries of the project. Jay Hardy, Brinkman Construction, stated the URA is to be a tool allowing for the development and redevelopment of blighted areas. He outlined the proposed project, named Portico, which includes a Marriot hotel, 170-200 multi-family units, and retail. He discussed the importance of the pedestrian experience and having three main points of entry. 1.1 Packet Pg. 5 Attachment: December 20, 2018 (7690 : URA minutes-12/20) December 20, 2018 City of Fort Collins Page 349 Commissioner Stephens asked about the affordable housing component of the project. Mr. Hardy replied that is being evaluated and is dependent upon its definition. Commissioner Stephens stated the City has affordable housing definitions based on area median income and stated she would like to see an element of affordable housing in the project. She expressed concern about the retail aspects of the area bringing in jobs that may not pay enough to live in the area. Commissioner Summers asked about the proposed timeline for completion. Mr. Hardy replied the hope is to begin construction by the end of the summer and the project will take about 16 months to complete. Commissioner Summers asked if there is a metric used for population size versus retail square footage. He commended the project but stated he does not want to see another project that does not meet expectations in terms of retail occupancy. Mr. Hardy replied that is a concern of developers as well and noted this project has three components with a fairly low number of retail square feet. He stated he wants to ensure the retail is market-driven in order to make it successful. Commissioner Martinez asked about the capacity of the hotel. Mr. Hardy replied there are 102 rooms which would mean an average of about 135 people at full capacity. Commissioner Martinez asked about the capacity of the residential units. Mr. Hardy replied it will likely be 200-210 people. Commissioner Martinez asked about security features of the site. Mr. Hardy replied each of the three uses is addressed differently, but all common spaces will be well lit within dark sky provisions. The hotel will not have ground level rooms. Todd Parker, Brinkman Senior Development Manager, stated his group is working with staff to create the focused pedestrian connectivity while still maintaining a sense of space for the residential units. The retail and hotel will have additional lighting. Commissioner Martinez asked about the city's AMI. Birks replied the City's definition is 80% of area median income. Commissioner Martinez questioned how many jobs being provided by the development would meet the necessary hourly wage to meet the AMI. Commissioner Cunniff asked if the proposed use is conceptually compatible with the zoning designation. Birks replied it is conceptually aligned with the Mid-town Plan and the site is in one of the most permissive zone districts in the city. Commissioner Cunniff expressed concern the use of tax increment financing increases property values thereby increasing taxes for not just the affected property but for neighboring properties as well. He stated the building of the hotel being dependent on tax increment financing is concerning as it would mean the business plan analysis suggests there is not enough demand for a hotel to justify self-sustaining financing. He stated it is not government's role to subsidize that type of development and the tax increment should focus strictly on items that provide an extraordinary public benefit to citizens at large while not overly impacting the property tax for surrounding 1.1 Packet Pg. 6 Attachment: December 20, 2018 (7690 : URA minutes-12/20) December 20, 2018 City of Fort Collins Page 350 properties. he has not seen a list of possible public amenities or benefits to the general public to support the project. Chair Troxell stated this project is well within URA goals. Birks replied the three main goals are to create, accelerate, and enhance. Chair Troxell stated affordability will be positively affected by an increase in housing supply. This area of the city needs a catalyst development. He asked if the housing units are rental or ownership. Mr. Hardy replied they are all rental units. Chair Troxell stated he would like to see more ownership opportunities throughout the city but stated the project specifically meets City objectives and aligns well with the URA driving strategies. Commissioner Smith asked about public amenities that may be included if TIF funding were provided. Mr. Parker replied the Midtown Plan calls for a strong north-south connection and pedestrian connectivity which are being provided. The project goes above and beyond requirements by providing various amenities along the north-south spine. Commissioner Smith asked if the proposed internal street is a private drive. Mr. Parker replied in the affirmative. Commissioner Smith asked if it is intended to connect to the south in the future. Mr. Parker replied that connection is planned when the southern parcel redevelops. Commissioner Summers asked about parking access for the MAX line. Mr. Parker replied there is no parking provided for MAX access, but the site is above TOD parking standards. Commissioner Smith asked about the use of superior building materials. Mr. Parker replied the architecture is enhanced on all four sides of the project. Birks stated the 80% AMI for a single individual in Fort Collins is $47,700 per year, or $23 per hour assuming a full work year of 2,080 hours and retail positions would likely pay considerably less that than amount. Commissioner Martinez asked if there are any plans for on-site private security. Mr. Hardy replied they have had good dialogue with Police Services that has influenced the overall strategy on operating properties and private security could be considered. Commissioner Martinez asked about the projected sales and use tax generation for the site. Birks replied staff is still refining those numbers, but rough estimates show $2 million per year. Commissioner Martinez stated areas of town should not be left blighted due to concerns over tax increases. Commissioner Cunniff replied the broader public good must be considered. Commissioner Johnson stated the County would like to see affordable units as part of the development and suggested further evaluation of possibilities. He asked about the design consistency between this development and the development on the other corner. Executive Director Atteberry replied the URA participation can leverage discussions relating to cohesiveness. 1.1 Packet Pg. 7 Attachment: December 20, 2018 (7690 : URA minutes-12/20) December 20, 2018 City of Fort Collins Page 351 Commissioner Johnson stated he is intrigued by Commissioner Cunniff's comments relating to the use of tax increment financing. He stated the roadway improvements that will be necessitated by the project have a nexus to the project and are therefore appropriate for TIF funding. Taxpayer funding should be used to make a project happen that would not otherwise, and this project is suitable for TIF because the property may sit vacant for a period of time without it and that is not in the interest of any of the taxing entities. Executive Director Atteberry ensured the Commission staff will return with information on affordability and how it relates to AMI, social sustainability, cohesiveness with adjacent plans, and a clear articulation of public benefits. 3. College & Drake Plan Formation Schedule Update. (No Action Taken) The purpose of this item is to provide the Board with an update on the College and Drake Plan formation schedule. Birks discussed the revised schedule which includes a two-month delay in the formation of the plan area. He noted City Council is the body that acts on creating the plan and confirming blight has been found and the URA implements the plan. He stated the IGAs should be presented to the URA Board on February 27. Commissioners, Birks, and URA Counsel White discussed the Urban Renewal Statute and notice requirements. Commissioner Wise noted the commitment to TIF financing will likely require an analysis ensuring TIF is necessary to make the project go forward, or a “but for” analysis. Rhat analysis does not currently exist, nor does information related to the financing gap. He stated his Board would not likely reach a conclusion without that information in the 120-day timeline. Birks stated the first round of the “but for” analysis has recently been completed and presented to the developer for review. He stated the preliminary analysis has found a financial gap in need of TIF funding, though there is some additional work to complete. Chair Troxell commended the collaborative process. 4. Discuss Tax Increment Allocation Process. (No Action Taken) The purpose of this item is to discuss the process for evaluating and negotiating tax increment revenue allocations between the Fort Collins Urban Renewal Authority (the "Authority") and affected taxing entities as required by the Colorado Urban Renewal Law, C.R.S. §31-25-101 et seq. (“Colorado Urban Renewal Law”) Birks stated the Commissioners should consider whether they have questions about the legal standards for negotiating the tax increment financing allocations and whether the Board agrees with the staff-recommended approach as to how the process should work. Counsel White stated this process derives from legislation passed in 2015 which states the agreement must address estimated impacts of the Urban Renewal Plan on county or district services associated solely with the Urban Renewal Plan. She detailed various aspects of the statute including arbitration and appropriate uses of tax increment financing. The public benefit that is required by the statute is the remedying of blighted conditions. 1.1 Packet Pg. 8 Attachment: December 20, 2018 (7690 : URA minutes-12/20) December 20, 2018 City of Fort Collins Page 352 Birks discussed the tax increment finance study group that was created in 2014 to determine a method to analyze fiscal and economic impacts from projects, a method to evaluate the indirect impacts, and to establish a framework for agreements between the entities. He detailed the fiscal impact model created and evaluation criteria and stated he would like the Board to discuss allocations while focusing on the statute and fiscal impact analysis. Commissioner Cunniff asked if the term “project” references the project that initiates the creation of the plan. Counsel White replied it is possible to have a large plan area with multiple properties, each of which would be an undertaking or activity within the statutory definition; however, accomplishing all the goals in their entirety is the “project”. In this case, the plan boundary coincides with the project boundary, but that may not always be the case. Commissioner Cunniff asked about using dedicated road mill levy increments for road improvements but not facade improvements. Counsel White replied that is generally true and the statute requires the URA to follow any use restrictions placed on the increment for the underlying body. She stated she would follow up with a more detailed memo for Commissioners. Commissioner Wise stated, from a URA perspective, the plan offers many desirable community benefits; however, as a representative of the special districts, he is unsure the plan rises to the level of critical need to impose a TIF arrangement on the special districts. He noted the mill levy is the Library District's main source of income and there is no backfill if money is diverted. He questioned whether it is good public policy to divert money from the Health District and Library District to build a hotel and retail. He requested the URA Board consider exempting the special districts from this proposed plan. Commissioner Cunniff stated the original 2006 question authorizing the mill levy for the Library District lists four purposes, all of which are specific to operating the library. Commissioner Johnson asked about the intent of this conversation. Birks replied the plan for today was to set a basis of understanding as to the legal standard and confirm the approach that should be taken given this is the first time this Board has gone through this process. Each of the conversations with the districts will be unique, but this conversation should determine how those discussions will be approached. Commissioner Wise stated he agrees with the development of the fiscal impact model, but he questioned whether the Board agrees with the recommended staff position to use the impact model and formula. Commissioner Smith stated using the fiscal impact model to start negotiations does not obligate an entity to participate. Birks agreed. Chair Troxell discussed the importance of making the best-informed decisions possible. • OTHER BUSINESS Commissioner Cunniff commended additions to the URA website and asked if staff could make the 6-month planning calendar more obvious on the site. He suggested staff provide a memo outlining how costs are allocated between the URA and the City when a City department is asked to look at a URA item. 1.1 Packet Pg. 9 Attachment: December 20, 2018 (7690 : URA minutes-12/20) December 20, 2018 City of Fort Collins Page 353 • ADJOURNMENT The meeting adjourned at 11:07 AM. ________________________________ Chair ATTEST: ________________________________ Secretary 1.1 Packet Pg. 10 Attachment: December 20, 2018 (7690 : URA minutes-12/20) Agenda Item 2 Item # 2 Page 1 AGENDA ITEM SUMMARY February 27, 2019 Urban Renewal Authority Board STAFF Josh Birks, Economic Health Director SUBJECT Resolution No. 094 of the Board of Commissioners of the Fort Collins Urban Renewal Authority Approving an Intergovernmental Agreement with the City of Fort Collins for the Authority's Contribution of Funds to the City's North College Drainage Improvement District Project. EXECUTIVE SUMMARY The purpose of this item is to present an Intergovernmental Agreement (IGA) between the City of Fort Collins and the Fort Collins Urban Renewal Authority which memorializes the terms of acceptance of $300,000 in Authority support for the City’s continued design of the North College Drainage Improvement District (NCDID), including transportation designs for North Mason Street (Alpine Street to Hickory Street), along with Alpine Street, Pinon Street and Hemlock Street (Mason Street to North College Avenue) (the Project). The 2019 Authority Budget accounted for and appropriated funds for this obligation. In addition, the 2019 City Budget includes additional funding for the Project from two sources in City: Engineering and Stormwater. STAFF RECOMMENDATION Staff recommends adoption of the Resolution. BACKGROUND / DISCUSSION The North College Urban Renewal Plan Area was established in 2004. A drainage analysis and report for the North College Drainage Improvement District (NCDID) area was initially completed in 2006 (Ayres and Associates). In recent years, there has been increased interest and support by the North College Citizens Advisory Group (CAG) to implement the necessary street and stormwater improvements needed to promote development and redevelopment in the area. The Fort Collins Urban Renewal Authority funded an update to the NCDID analysis, completed in June 2017 (Ayers and Associates). The report includes conceptual stormwater improvements, cost estimates and a phased implementation approach. The approximate study area is shown in Attachment 1. Funding Overview The City and the Authority approved $767,800 in funding for the continued design of the NCDID, including transportation designs for North Mason Street (from Alpine Street to Hickory Street), along with Alpine Street, Pinon Street and Hemlock Street (from Mason Street to North College Avenue) in their respective 2019 Budgets. The Authority must take an additional step to commit its funds to the Project. This step includes reviewing and approving an IGA between the City and the Authority obligating the Authority to pay $300,000 to defray Project costs. The IGA is consistent with similar IGAs previously approved by the Authority; the most recent example being the $300,000 commitment to assist the Whitewater Park project. 2 Packet Pg. 11 Agenda Item 2 Item # 2 Page 2 AUTHORITY FINANCIAL IMPACTS The Project is tax-exempt and does not generate property tax increment because it is design work for a public improvement. Therefore, increment generated from projects elsewhere in the plan area provide the necessary funds. Furthermore, these funds were budgeted and appropriated as part of the 2019 budget. Any impact on the North College Urban Renewal Plan fund balance has already been accounted for by the budget. This is a planned expense. BOARD / COMMISSION RECOMMENDATION The Authority Finance Committee reviewed the Intergovernmental Agreement at is February 11, 2019 meeting. The minutes will be provided as part of a read-before packet the day of the meeting (due to timing of distribution of this packet). PUBLIC OUTREACH The North College Citizens Advisory Group reviews and provides recommendations on all North College Plan Area activities. The CAG supported the use of Authority funds to support the project. ATTACHMENTS 1. Project Area Map (PDF) 2 Packet Pg. 12 30.9 acres 105.4 acres 31.0 acres N COLLEGE AVE CHERRY ST W WILLOX LN PINE WOOD ST ELM ST HICKORY ST E VINE DR SYCAMORE ST ELM BLUE SPRUCE DR BIRCH HEMLOCK ST CONIFER ST E WILLOX LN LINDEN ST CAJETAN ST WOOD LN OSIANDER ST SPAULDING LN JEROME ST W VINE DR PARK ST E SUNIGA RD PASCAL ST ASPEN N GRANT A VE OAK WEST ST ELM CT SNOWY OWL CIR ELM ST . 0 245 490 980 1,470 Printed: 1,05/960 12/2016 Feet North College Drainage Area ATTACHMENT 1 2.1 Packet Pg. 13 Attachment: Project Area Map (7638 : North College Drainage Improvement District Funding) -1- RESOLUTION NO. 094 OF THE BOARD OF COMMISSIONERS OF THE FORT COLLINS URBAN RENEWAL AUTHORITY APPROVING AN INTERGOVERNMENTAL AGREEMENT WITH THE CITY OF FORT COLLINS FOR THE AUTHORITY’S CONTRIBUTION OF FUNDS TO THE CITY’S NORTH COLLEGE DRAINAGE IMPROVEMENT DISTRICT PROJECT WHEREAS, in 2004, the Fort Collins City Council adopted Resolution 2004-152 approving the North College Avenue Urban Renewal Plan, which it amended in 2015 in Resolution 2015-106 (the “North College Plan”); and WHEREAS, the North College Plan was adopted to facilitate the elimination and prevention of blighted areas within the plan area identified in the Plan (the “Plan Area”) by promoting and assisting undertakings and activities within the Plan Area involving the development, redevelopment and rehabilitation of Plan Area properties as part of a single urban renewal project (the “North College Project”); and WHEREAS, the Fort Collins Urban Renewal Authority (the “Authority”) implements and administers the North College Plan; and WHEREAS, a drainage analysis and report for the North College Drainage Improvement District (“NCDID”) area was completed in 2006, and updated in June 2017, and includes conceptual stormwater improvements, cost estimates and a phased implementation approach; and WHEREAS, the City of Fort Collins (“City”) is designing the NCDID improvements, including transportation designs for North Mason Street (Alpine Street to Hickory Street), along with Alpine Street, Pinon Street and Hemlock Street (Mason Street to North College Avenue) (the “Project”); and WHEREAS, the Authority desires to contribute $300,000 to help fund the Project as it is in furtherance of the North College Plan’s goal to eliminate blight and redevelop the Plan Area to meet the needs and expectations of the Authority, the surrounding neighborhood, and the City at large; and WHEREAS, to memorialize this contribution, City and Authority staff have presented to the City Council and Authority Board for their consideration the Intergovernmental Agreement attached as Exhibit “A” and incorporated herein (the “Agreement”), under which the Authority agrees to pay the City $300,000 to help fund the Project, which is estimated to cost a total of approximately $767,800; and WHEREAS, the City and the Authority are authorized to enter into the Agreement to cooperate in the funding and construction of the Project pursuant to C.R.S. § 29-1-203 and the Colorado Urban Renewal Law, including, without limitation, C.R.S. § 31-25-112, and the City is further authorized to do so under City Charter Article II, Section 16. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE FORT COLLINS URBAN RENEWAL AUTHORITY as follows: Packet Pg. 14 -2- Section 1. That the Authority hereby makes and adopts the determinations and findings contained in the recitals set forth above. Section 2. That the Agreement is hereby approved and the Executive Director is authorized to enter into the Agreement on the Authority’s behalf in substantially the form attached hereto as Exhibit “A,” subject to such minor modifications as the Authority’s Executive Director, in consultation with the Authority Attorney, may determine to be necessary and appropriate to protect the interests of the Authority or to effectuate the purposes of this Resolution. Passed and adopted at a regular meeting of the Board of Commissioners of the Fort Collins Urban Renewal Authority this 27th day of February A.D. 2019. ____________________________________ Chair ATTEST: _________________________________ Secretary Packet Pg. 15 EXHIBIT A INTERGOVERNMENTAL AGREEMENT BETWEEN THE CITY OF FORT COLLINS AND THE FORT COLLINS URBAN RENEWAL AUTHORITY REGARDING THE AUTHORITY’S CONTRIBUTION OF FUNDS FOR THE NORTH COLLEGE DRAINAGE IMPROVEMENT DISTRICT PROJECT THIS INTERGOVERNMENTAL AGREEMENT is made and entered into this _____ day of ________, 2019, (this “Agreement”) by and between the City of Fort Collins, a Colorado home rule municipality (the “City”), and the Fort Collins Urban Renewal Authority, a corporate body and political subdivision of the state (the “Authority”). The City and Authority shall also hereafter be jointly referred to as “Parties” or individually as “Party.” RECITALS WHEREAS, in 2004, the Fort Collins City Council adopted Resolution 2004-152 approving the North College Avenue Urban Renewal Plan, which it amended in 2015 in Resolution 2015-106 (the “North College Plan”); and WHEREAS, the North College Plan was adopted to facilitate the elimination and prevention of blighted areas within the plan area identified in the Plan (the “Plan Area”) by promoting and assisting undertakings and activities within the Plan Area involving the development, redevelopment and rehabilitation of Plan Area properties as part of a single urban renewal project (the “North College Project”); and WHEREAS, the Fort Collins Urban Renewal Authority (the “Authority”) implements and administers the North College Plan; and WHEREAS, a drainage analysis and report for the North College Drainage Improvement District (“NCDID”) area was completed in 2006, and updated in June 2017, and includes conceptual stormwater improvements, cost estimates and a phased implementation approach; and WHEREAS, the City of Fort Collins (“City”) is designing the NCDID improvements, including transportation designs for North Mason Street (Alpine Street to Hickory Street), along with Alpine Street, Pinon Street and Hemlock Street (Mason Street to North College Avenue) (the “Project”); and WHEREAS, the Authority’s Board of Commissioners (the “Board”) has reviewed the Project and identified several benefits it will provide in furtherance of the North College Plan’s goal to eliminate blight and redevelop the Plan Area to meet the needs and expectations of the Authority, the surrounding neighborhood, and the City at large, which benefits include, without limitation: (i) improvements to portions of North Mason Street, Alpine Street, Pinon Street and Hemlock Street, (ii) stormwater improvements that will reduce the likelihood that College Avenue in the Plan Area will overtop during a flood, and (iii) improvements that will improve connectivity between the Plan Area and downtown Fort Collins (collectively, the “Project Benefits”); and WHEREAS, therefore, the Authority desires to contribute $300,000 to help fund the Project; and 1 Packet Pg. 16 Attachment: Exhibit A (7693 : North College Drainage Improvement District Funding RES) WHEREAS, in consideration of the Project Benefits, the Board has adopted Authority Resolution No. 2019-____ approving this Agreement and appropriating $300,000 to be paid to the City to help fund the Project, which is estimated to cost a total of approximately $767,800; and WHEREAS, the City Council has also approved this Agreement in its Resolution 2019- _____ in order to accept the funds for the Project from the Authority; and WHEREAS, the City and the Authority are authorized to enter into this Agreement to cooperate in the funding and construction of the Project pursuant to C.R.S. § 29-1-203 and the Colorado Urban Renewal Law, including, without limitation, C.R.S. § 31-25-112, and the City is further authorized to do so under City Charter Article II, Section 16. NOW, THEREFORE, in consideration of the promises contained herein and other good and valuable consideration, the receipt and adequacy of which the Parties hereby acknowledge, the Parties agree as follows: 1. The Authority’s Obligation. The Authority agrees to pay the City three hundred thousand dollars ($300,000) within sixty (60) days after the City enters into the contract with the party it retains for the Project, provided such contract includes the improvements that will provide the Project Benefits. 2. TABOR. The Parties understand and acknowledge that the Authority is not subject to the Taxpayer’s Bill of Rights in Article X, Section 20 of the Colorado Constitution. The Parties therefore intend that the Authority’s debt obligation in Section 1 above is a binding obligation enforceable by the City at law and in equity as provided in Section 3 below and such enforcement is not contingent upon the future appropriation of funds by the Board. 3. Remedies Upon Default. Upon the failure of either Party to comply with any of its obligations contained herein (a “Default”), the non-defaulting Party shall provide written notice of the Default to the defaulting Party. Immediately upon receipt of such notice, the defaulting Party shall promptly cure such Default within thirty (30) days, or if not susceptible of cure within thirty (30) days, within such time as agreed upon by the non-defaulting Party for the cure of such Default. If the defaulting Party fails to cure or remedy the Default within the time period prescribed, the non-defaulting Party may protect and enforce any or all of its rights and the obligations of the defaulting Party under this Agreement by suit in equity or action at law, in Larimer County District Court, whether for the specific performance of any covenants or agreements in this Agreement or otherwise, or take any action authorized or permitted under applicable law, and may require and enforce the performance of all acts and things required to be performed hereunder by the other Party. Each and every remedy of either Party shall, to the extent permitted by law, be cumulative and shall be in addition to any other remedy given hereunder or now or hereafter existing at law or in equity. 4. Amendments. This Agreement may only be amended, changed, modified or altered in a writing signed by both Parties. 5. Implementing Agreements and Further Assurances. The Parties agree to execute such other documents, and take such other actions, as will be reasonably requested by the 1 Packet Pg. 17 Attachment: Exhibit A (7693 : North College Drainage Improvement District Funding RES) other Party to confirm or clarify the intent of the provisions hereof and to effectuate the agreements herein contained. 6. Term; Termination. This Agreement shall remain in full force and effect until the Authority’s debt obligation under this Agreement is paid in full to the City. However, in the event the City does not enter into a contract with the party it retains for the Project by December 31, 2019, this Agreement shall terminate and both Parties shall be released from all remaining obligations under this Agreement. 7. No Third-Party Beneficiaries. No term or provision of this Agreement is intended to be for the benefit of any person, entity, association or organization not a party to this Agreement, and no such other person, entity, association or organization shall have any right or cause of action hereunder. 8. Applicable Law and Venue. This Agreement shall be governed by and construed under the laws of the State of Colorado and the venue for any judicial proceedings related to this Agreement shall be in Larimer County District Court. 9. Section Headings. The captions or headings herein are for convenience or reference only and shall in no way define or limit the scope or intent of any provision or section of this Agreement. IN WITNESS WHEREOF, the Parties have executed this Agreement as the date and year first above written. THE FORT COLLINS URBAN RENEWAL AUTHORITY By: Darin A. Atteberry, Executive Director ATTESTED: By: Authority Clerk Print Name: APPROVED AS TO FORM: By: Authority Legal Counsel Print Name: 1 Packet Pg. 18 Attachment: Exhibit A (7693 : North College Drainage Improvement District Funding RES) THE CITY OF FORT COLLINS, COLORADO By: Wade Troxell, Mayor ATTESTED: By: City Clerk Print Name: APPROVED AS TO FORM: By: Deputy City Attorney Print Name: 1 Packet Pg. 19 Attachment: Exhibit A (7693 : North College Drainage Improvement District Funding RES) Agenda Item 3 Item # 3 Page 1 AGENDA ITEM SUMMARY February 27, 2019 Urban Renewal Authority Board STAFF Josh Birks, Economic Health Director SUBJECT An Update on the Proposed College and Drake Urban Renewal Plan-Anticipated Public Improvements to be Funded from Increment Tax Revenue. EXECUTIVE SUMMARY The purpose of this item is to update the Fort Collins Urban Renewal Authority Board on the proposed College and Drake Urban Renewal Plan. The update will focus primarily on the proposed uses of incremental property and sales tax revenues within the Plan. The Board will discuss the proposed list of public improvements and review the prioritization prepared by the Finance Committee and Plan Area Review Committee. STAFF RECOMMENDATION No formal action. Staff is seeking guidance from the Board regarding the potential use of incremental tax revenues generated within the proposed College and Drake Urban Renewal Plan. Direction Sought 1. Does the Board have any questions about the proposed public improvements to be included in the College and Drake Urban Renewal Plan or the priority order of the same improvements? BACKGROUND / DISCUSSION The City of Fort Collins (the “City”) is considering the adoption of a new Urban Renewal Plan, at the intersection of College Avenue and Drake Road, (the “Plan”) to direct the activities of the Fort Collins Urban Renewal Authority (the “Authority”), pursuant to the Colorado Urban Renewal Law, C.R.S. §31-25-101 et seq. The Plan enables 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. The Plan effort originated in response to two proposals for private development in the area. While these two projects are anticipated to occur in the near term, additional development and redevelopment may occur incrementally over the life of the Plan. In 2014, the Larimer County Tax Increment Financing Study Group (the “TIF Study Group”) was formed of representatives from Larimer County, municipalities in the county currently using urban renewal (Fort Collins, Loveland, and Timnath), five other municipalities, and selected taxing districts and special districts. The TIF Study group: ▪ Acknowledged the positive impact of TIF in providing needed financial support for redevelopment and economic development investments in the County; and ▪ Convened because of concerns about requirements to provide services to the new development created by urban renewal supported by TIF. The TIF Study Group had three primary objectives: 3 Packet Pg. 20 Agenda Item 3 Item # 3 Page 2 1. Develop a method to qualify and quantify the fiscal and economic impacts and financial risks of TIF proposals; 2. Develop a way to evaluate the indirect impacts of TIF projects and corresponding financial effects on taxing entities; and 3. Establish a framework for formal agreements that balance the benefits and risks among participating entities in Larimer County. To achieve objective three (3) above. The Plan Area Review Committee (the “PRC”) recommends that the Plan include a specific set of improvements to be funded in part or fully by TIF. This list of improvements would then be attached to any intergovernmental agreement (“IGA”) between the Authority and an impacted tax entity. The intent is to provide a clear list of the uses of TIF prior to adopting the plan. Once all improvements on the listed are fully funded and constructed any the collection of TIF would terminate with revenue reverting back to the appropriate entity. This would apply to all incremental property tax revenue and sales tax revenue. Revenue Sources: An Overview An estimate of the available incremental property tax and sales tax revenue is provided in Attachment 1. This estimate of revenue provides a useful input in evaluating the potential public improvements to be funded through the Plan. The estimated annual increment property and sales tax revenue totals approximately $750,000 annually. A conservative estimate of the total revenue generated by increment is approximately $17.8 million; assuming 24 years of collections (allowing for some delay in values accruing after construction). The current estimate of revenue follows the Authority’s practice and policy of assuming no appreciation over the life of the plan. This is a conservative assumption. These assumptions will likely change during negotiations. For reference and equity comparison, Attachment 1 also shows the relative amount of annual revenue each taxing entity would pledge to the proposed Plan. Excluding the City, the average commitment is approximately 0.12 percent annually. Proposed Public Improvements: The intent of creating the Plan and collecting TIF is to remove economic impediments and prevent the spread of further deterioration in a geographically defined area. Authority staff has worked closely with City staff from Transportation Planning, Traffic Operations, Engineering, and Planning to identify a list of improvements that address the existing and anticipated future impediments to reinvestment in the Plan. The list of improvements is presented in Attachment 2 and grouped by major category: ▪ Development Related (Financial Gap) - These improvements are required to be built by the two private redevelopment projects proposed in the near term. These improvements are typically built and paid for by private development; however some TIF may be needed to address project feasibility or the “but for” financial gap. ▪ Plan Area Improvements (Blight Remediation) - These public improvements address blighted conditions and will improve conditions throughout the Plan area. The improvements are not requirements of private development through the Development Review process. These improvements are expected to be paid for primarily from TIF. ▪ Additional Opportunities (Community Benefit) - These improvements include long term projects that deliver broader community benefit and / or require additional study. City staff is still developing some of the cost estimates; however, the list of potential improvements is substantially complete. Therefore, the potential use of TIF will not expand beyond the listed items but may increase in total amount. The current estimate of cost totals approximately $28.0 million over $10.0 million in excess of the anticipated revenue generated in the plan. However, some portion of the Development Related costs will be funded by the private sector and not TIF. This will serve to reduce the total amount in part (still being determined and based on the third-party “but for” financial analysis). These numbers are subject to change during negotiations. 3 Packet Pg. 21 Agenda Item 3 Item # 3 Page 3 The anticipated uses of TIF exceed the projected TIF revenue. Therefore, prioritization will be important because it will define the order that improvements will be constructed, whether through bond issuance or pay- as-you-go. The conservative TIF revenue estimated may fall below the actual TIF revenue collections, therefore, prioritizing a list of improvements that exceeds revenue estimates is also useful. That way the total use of TIF is still clear and limited but allows for some potential benefit beyond that anticipated from initial projects. Both the Sources and Uses analysis is changing rapidly as negotiations proceed. Its likely that a significant change will occur between publishing this packet and the Board meeting on February 27, 2019. Any changes will be communicated via a memorandum prior to the board meeting. Changes may also be included in the presentation given by staff - new hard copies of any changes will be brought to the meeting. AUTHORITY FINANCIAL IMPACTS The proposed list of public improvements will be used as a guide to determine the timing and use of incremental property tax and sales tax revenues generated within the Plan. BOARD / COMMISSION RECOMMENDATION The Authority Finance Committee met on February 11, 2019 and reviewed the proposed list of public improvements. The Committee then discussed the relative importance and priority of the proposed uses of incremental tax revenue. The matrix presented as Attachment 2 reflects input from that dialogue. Draft meeting minutes will be provided in a read-before packet on the day of the meeting (due to the availability of the minutes relative to the distribution of this packet). PUBLIC OUTREACH Authority staff held a public open house on October 10, 2018. At the open house, citizens were asked to rank through a multi-vote process their preferred use of incremental revenues on public improvements. That input has been shared with the Plan Area Review Committee and Finance Committee during their deliberations. ATTACHMENTS 1. TIF Revenue Estimate Summary (PDF) 2. Proposed URA Funded Public Improvements (PDF) 3. Powerpoint presentation (PDF) 3 Packet Pg. 22 Taxing Entity / Revenue Source Mills / Rate Assumptions Annual Increment Total Increment Approx. Share of Annual Revenue City of Fort Collins / Property Tax 9.797 100% of Increment Committed $ 88,501 $ 2,124,024 0.36% City of Fort Collins / Road & Bridge Property Tax 0.500 100% of Increment Committed $ 4,517 $ 108,402 N/A City of Fort Collins / Sales Tax 2.25% 50% of Increment Committed $ 316,713 $ 7,601,100 0.37% Larimer County / Property Tax 21.153 60% of Increment Committed $ 114,651 $ 2,751,627 0.11% Health District / Property Tax 2.167 66% of Increment Committed $ 12,920 $ 310,077 0.16% Library District / Property Tax 3.000 66% of Increment Committed $ 17,886 $ 429,271 0.19% Foothillls Gateway / Property Tax 0.750 53% of Increment Committed $ 3,591 $ 86,179 0.09% Poudre School District / Property Tax 52.630 20.25 Mills of Increment Committed $ 182,928 $ 4,390,272 0.14% Northern Water / Property Tax 1.000 No Increment Committed $ ‐ $ ‐ 0.00% Larimer County Pest Control District / Property Tax 0.142 60% of Increment Committed $ 770 $ 18,472 0.12% Total $ 742,476 $ 17,819,424 ATTACHMENT 1 3.1 Packet Pg. 23 Attachment: TIF Revenue Estimate Summary (7641 : Update: College & Drake Plan-Public Improvements) Item Development Related (Financial Gap) Plan Area Improvements (Blight Remediation) Plan Related Expenditures (Subtotal) Additional Opportunities (Community Benefit) Total Intersection Improvements & Safety $ 125,000 $ 3,900,000 $ 4,025,000 $ - $ 4,025,000 1. Dual Left Turns EB Drake to NB College $ 10,000 $ 740,000 $ 750,000 $ - $ 750,000 2. Pedestrian Refuge Islands (Drake & College) $ 15,000 $ 210,000 $ 225,000 $ - $ 225,000 3. Relocate College Ave. Street Lights from Medians $ - $ 250,000 $ 250,000 $ - $ 250,000 4. Right Turn Decel. Lane EB Drake to SB College $ 100,000 $ - $ 100,000 $ - $ 100,000 5. Color concrete crosswalks at Drake & College (4 Total) $ - $ 350,000 $ 350,000 $ - $ 350,000 6. New Traffic Signal System at Drake & College $ - $ 350,000 $ 350,000 $ - $ 350,000 7. Extend Concrete Pavement on Drake for College Approach $ - $ 1,250,000 $ 1,250,000 $ - $ 1,250,000 8. Dual Left Turns WB Drake to SB College $ - $ 750,000 $ 750,000 $ - $ 750,000 Bicycle & Multi-Use Improvements & Safety $ 150,000 $ 5,240,000 $ 5,390,000 $ - $ 5,390,000 1. McClelland & MAX Promenade $ 150,000 $ 90,000 $ 240,000 $ - $ 240,000 2. Eastside College Multi-use path $ - $ 150,000 $ 150,000 $ - $ 150,000 3. Bike & Pedestrian Grade Seperated Crossing - Mason Trail $ - $ 5,000,000 $ 5,000,000 $ - $ 5,000,000 Traffic Safety Improvements $ 325,000 $ 1,300,000 $ 1,625,000 $ - $ 1,625,000 1. Mid-block left turns on Drake - College & McClelland $ - $ 400,000 $ 400,000 $ - $ 400,000 2. Thunderbird Improvements - College to McClelland $ 100,000 $ 50,000 $ 150,000 $ - $ 150,000 3. Connecting Roadways - East to West $ 225,000 4. Access / turn lane improvements on Drake - College to Redwing $ - $ 600,000 $ 600,000 $ - $ 600,000 5. Access / turn lane improvement on Drake - College to Harvard $ - $ 250,000 $ 250,000 $ - $ 250,000 Parking Management $ - $ - $ - $ 11,000,000 $ 11,000,000 1. Drake MAX Station Parking Management & Easement $ - $ - $ - $ 11,000,000 $ 11,000,000 Pedestrian & Sidewalk Improvements (ADA Compliance) $ 530,000 $ 115,000 $ 645,000 $ - $ 645,000 1. Detached sidewalks with landscaped parkways $ - $ 115,000 $ 115,000 $ - $ 115,000 2. Mid-Block Drive/Private Street Sidewalk & Enhancements $ 530,000 $ - $ 530,000 $ - $ 530,000 Landscaping & Streetscape $ - $ 500,000 $ 500,000 $ - $ 500,000 1. Landscape Medians Per Streetscape Standards $ - $ 500,000 $ 500,000 $ - $ 500,000 Transit Access & Improvements $ 85,000 $ 85,000 $ 170,000 $ - $ 170,000 1. Bus Stop Improvements on Drake Road (4 Total) $ 85,000 $ 85,000 $ 170,000 $ 170,000 Other Expenses $ 4,660,000 $ - $ 4,660,000 $ - $ 4,660,000 1. Demolition (Include Underground Tank Remediation) $ 700,000 $ - $ 700,000 $ - $ 700,000 2. On-site Low Impact Design Requirements (Water Quality) $ 410,000 $ - $ 410,000 $ - $ 410,000 3. On-site Public Sitgework $ 3,000,000 4. Site Utility Infrastructure $ 550,000 5. Affordable Housing Commitment (Covered by Developer) $ - $ - $ - $ - $ - Total $ 5,875,000 $ 11,140,000 $ 17,015,000 $ 11,000,000 $ 28,015,000 ATTACHMENT 2 3.2 Packet Pg. 24 Attachment: Proposed URA Funded Public Improvements (7641 : Update: College & Drake Plan-Public 1 Josh Birks, Economic Health and Redevelopment Director February 27, 2019 College & Drake Urban Renewal Plan Update: Public Benefit & Improvements College & Drake Urban Renewal Plan Update: Public Benefit & Improvements ATTACHMENT 3 3.3 Packet Pg. 25 Attachment: Powerpoint presentation (7641 : Update: College & Drake Plan-Public Improvements) Questions for the Board 1. Does the Board have any questions about the proposed public improvements to be included in the College and Drake Urban Renewal Plan? 2. How would the Board prioritize the proposed public improvements? 2 3.3 Packet Pg. 26 Attachment: Powerpoint presentation (7641 : Update: College & Drake Plan-Public Improvements) Sources: Revenue Estimates 3 NOTE: Estimates are subject to change during negotiations Taxing Entity / Revenue Source Mills / Rate Assumptions Annual Increment Total Increment Approx. Share of Annual Revenue City of Fort Collins / Property Tax 9.797 100% of Increment Committed $ 88,501 $ 2,124,024 0.36% City of Fort Collins / Road & Bridge Property Tax 0.500 100% of Increment Committed $ 4,517 $ 108,402 N/A City of Fort Collins / Sales Tax 2.25% 50% of Net New Increment Committed $ 316,713 $ 7,601,100 0.37% Larimer County / Property Tax 21.153 60% of Increment Committed $ 114,651 $ 2,751,627 0.11% Health District / Property Tax 2.167 66% of Increment Committed $ 12,920 $ 310,077 0.16% Library District / Property Tax 3.000 66% of Increment Committed $ 17,886 $ 429,271 0.19% Foothillls Gateway / Property Tax 0.750 53% of Increment Committed $ 3,591 $ 86,179 0.09% Poudre School District / Property Tax 52.630 20.25 Mills of Increment Committed $ 182,928 $ 4,390,272 0.14% Northern Water / Property Tax 1.000 No Increment Committed $ - $ - 0.00% Larimer County Pest Control District / Property Tax 0.142 60% of Increment Committed $ 770 $ 18,472 0.12% Total $ 742,476 $ 17,819,424 3.3 Packet Pg. 27 Attachment: Powerpoint presentation (7641 : Update: College & Drake Plan-Public Improvements) Uses: Public Improvements 4 Improvements address blight conditions in the area Item Development Related (Financial Gap) Plan Area Improvements (Blight Remediation) Plan Related Expenditures (Subtotal) Additional Opportunities (Community Benefit) Total Intersection Improvements & Safety $ 125,000 $ 3,900,000 $ 4,025,000 $ - $ 4,025,000 1. Dual Left Turns EB Drake to NB College $ 10,000 $ 740,000 $ 750,000 $ - $ 750,000 2. Pedestrian Refuge Islands (Drake & College) $ 15,000 $ 210,000 $ 225,000 $ - $ 225,000 3. Relocate College Ave. Street Lights from Medians $ - $ 250,000 $ 250,000 $ - $ 250,000 4. Right Turn Decel. Lane EB Drake to SB College $ 100,000 $ - $ 100,000 $ - $ 100,000 5. Color concrete crosswalks at Drake & College (4 Total) $ - $ 350,000 $ 350,000 $ - $ 350,000 6. New TrafficSignal System at Drake & College $ - $ 350,000 $ 350,000 $ - $ 350,000 7. Extend Concrete Pavement on Drake for College Approach $ - $ 1,250,000 $ 1,250,000 $ - $ 1,250,000 8. Dual Left Turns WB Drake to SB College $ - $ 750,000 $ 750,000 $ - $ 750,000 3.3 Packet Pg. 28 Attachment: Powerpoint presentation (7641 : Update: College & Drake Plan-Public Improvements) Uses: Public Improvements 5 Improvements address blight conditions in the area Item Development Related (Financial Gap) Plan Area Improvements (Blight Remediation) Plan Related Expenditures (Subtotal) Additional Opportunities (Community Benefit) Total Bicycle & Multi-Use Improvements & Safety $ 150,000 $ 5,240,000 $ 5,390,000 $ - $ 5,390,000 1. McClelland &MAX Promenade $ 150,000 $ 90,000 $ 240,000 $ - $ 240,000 2. Eastside College Multi-use path $ - $ 150,000 $ 150,000 $ - $ 150,000 3. Bike & Pedestrian Grade Seperated Crossing - Mason Trail $ - $ 5,000,000 $ 5,000,000 $ - $ 5,000,000 Traffic Safety Improvements $ 325,000 $ 1,300,000 $ 1,625,000 $ - $ 1,625,000 1. Mid-block left turns on Drake - College & McClelland $ - $ 400,000 $ 400,000 $ - $ 400,000 2. Thunderbird Improvements - College to McClelland $ 100,000 $ 50,000 $ 150,000 $ - $ 150,000 3. Connecting Roadways - East to West $ 225,000 4. Access / turn lane improvements on Drake - College to Redwing $ - $ 600,000 $ 600,000 $ - $ 600,000 5. Access / turn lane improvement on Drake - College to Harvard $ - $ 250,000 $ 250,000 $ - $ 250,000 3.3 Packet Pg. 29 Attachment: Powerpoint presentation (7641 : Update: College & Drake Plan-Public Improvements) Uses: Public Improvements 6 Improvements address blight conditions in the area Item Development Related (Financial Gap) Plan Area Improvements (Blight Remediation) Plan Related Expenditures (Subtotal) Additional Opportunities (Community Benefit) Total Parking Management $ - $ - $ - $ 11,000,000 $ 11,000,000 1. Drake MAX Station Parking Structure $ - $ - $ - $ 11,000,000 $ 11,000,000 Pedestrian & Sidewalk Improvements (ADA Compliance) $ 530,000 $ 115,000 $ 645,000 $ - $ 645,000 1. Detached sidewalks with landscaped parkways $ - $ 115,000 $ 115,000 $ - $ 115,000 2. Mid-Block Drive/Private Street Sidewalk & Enhancements $ 530,000 $ - $ 530,000 $ - $ 530,000 Landscaping & Streetscape $ - $ 500,000 $ 500,000 $ - $ 500,000 1. Landscape Medians Per Streetscape Standards $ - $ 500,000 $ 500,000 $ - $ 500,000 Transit Access & Improvements $ 85,000 $ 85,000 $ 170,000 $ - $ 170,000 1. Bus Stop Improvements on Drake Road (4 Total) $ 85,000 $ 85,000 $ 170,000 $ 170,000 3.3 Packet Pg. 30 Attachment: Powerpoint presentation (7641 : Update: College & Drake Plan-Public Improvements) Uses: Public Improvements 7 Improvements address conditions on the project sites Item Development Related (Financial Gap) Plan Area Improvements (Blight Remediation) Plan Related Expenditures (Subtotal) Additional Opportunities (Community Benefit) Total Other Expenses $ 4,660,000 $ - $ 4,660,000 $ - $ 4,660,000 1. Demolition (Include Underground Tank Remediation) $ 700,000 $ - $ 700,000 $ - $ 700,000 2. On-site Low Impact Design Requirements (Water Quality) $ 410,000 $ - $ 410,000 $ - $ 410,000 3. On-site Public Sitgework $ 3,000,000 4. Site Utility Infrastructure $ 550,000 5. Affordable Housing Commitment (Covered by Developer) $ - $ - $ - $ - $ - Total $ 5,875,000 $ 11,140,000 $ 17,015,000 $ 11,000,000 $ 28,015,000 3.3 Packet Pg. 31 Attachment: Powerpoint presentation (7641 : Update: College & Drake Plan-Public Improvements) Uses: Public Improvements 8 NOTE: No cost escalation or financing cost assumed Item Development Related (Financial Gap) Plan Area Improvements (Blight Remediation) Plan Related Expenditures (Subtotal) Additional Opportunities (Community Benefit) Total Intersection Improvements & Safety $ 125,000 $ 3,900,000 $ 4,025,000 $ - $ 4,025,000 Bicycle & Multi-Use Improvements & Safety $ 150,000 $ 5,240,000 $ 5,390,000 $ - $ 5,390,000 Traffic Safety Improvements $ 325,000 $ 1,300,000 $ 1,625,000 $ - $ 1,625,000 Parking Management $ - $ - $ - $ 11,000,000 $ 11,000,000 Pedestrian & Sidewalk Improvements (ADA Compliance) $ 530,000 $ 115,000 $ 645,000 $ - $ 645,000 Landscaping & Streetscape $ - $ 500,000 $ 500,000 $ - $ 500,000 Transit Access & Improvements $ 85,000 $ 85,000 $ 170,000 $ - $ 170,000 Other Expenses $ 4,660,000 $ - $ 4,660,000 $ - $ 4,660,000 Total $ 5,875,000 $ 11,140,000 $ 17,015,000 $ 11,000,000 $ 28,015,000 3.3 Packet Pg. 32 Attachment: Powerpoint presentation (7641 : Update: College & Drake Plan-Public Improvements) Sources vs. Uses § Revenue contributions create an equitable distribution § Potential Uses (Expenses) exceed projected Sources (Revenue) § Note: revenue projections assume 0% growth § Note: expenses do not include price escalation or financing § Prioritization provides guidance on use of revenue should it exceed projections § Use of TIF will be limited to the final proposed set of improvements 9 NOTE: Analysis is changing frequently; expect an UPDATE 3.3 Packet Pg. 33 Attachment: Powerpoint presentation (7641 : Update: College & Drake Plan-Public Improvements) Questions for the Board 1. Does the Board have any questions about the proposed public improvements to be included in the College and Drake Urban Renewal Plan? 2. How would the Board prioritize the proposed public improvements? 10 3.3 Packet Pg. 34 Attachment: Powerpoint presentation (7641 : Update: College & Drake Plan-Public Improvements) Agenda Item 4 Item # 4 Page 1 AGENDA ITEM SUMMARY February 27, 2019 Urban Renewal Authority Board STAFF Josh Birks, Economic Health Director SUBJECT Update: Tax Allocation Negotiations and Schedule. EXECUTIVE SUMMARY The purpose of this item is to provide the Fort Collins Urban Renewal Authority Board an update on the incremental property tax allocation discussions taking place with the impacted tax entities. Authority staff has been engaging with the entities through the Plan Area Review Committee (PRC) and individually for the past several months. These discussions are beginning to come to a head and staff would like to report on the current status. STAFF RECOMMENDATION No action is requested. Staff will present an update to the Board on negotiations and seek input and guidance. Direction Sought 1. Does the Committee have any questions about the current negotiations in support of the College and Drake Urban Renewal Plan? BACKGROUND / DISCUSSION The City of Fort Collins is considering the adoption of a new Urban Renewal Plan (URP), at the intersection of College Avenue and Drake Road, to direct the activities of the Fort Collins Urban Renewal Authority, pursuant to the Colorado Urban Renewal Law, C.R.S. §31-25-101 et seq. The Plan enables 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. The Plan effort originated in response to two proposals for private development in the area. While these two projects are anticipated to occur in the near term, additional development and redevelopment may occur incrementally over the life of the Plan. Authority staff has engaged with the impacted tax entities through the Plan Area Review Committee (PRC) and individually, below is a short summary of the status with each: • Larimer County - Authority and County staff have met twice to discuss the allocation and the Commissioners have reviewed the proposal - staff feels confident this agreement will be supported soon by the Commissioners (NOTE: these conversations have also included the Foothills Gateway and Larimer County Pest Control Districts); • Poudre School District (PSD) - Authority and PSD staff have met twice to discuss the terms of an allocation agreement, many aspects of the agreement are settled; however, one aspect remains a sticking point - the PSD Board of Education will review the current terms at their February 12, 2019 meeting 4 Packet Pg. 35 Agenda Item 4 Item # 4 Page 2 • Poudre River Library District - Authority and Library staff have met to discuss the terms of an allocation agreement; Library staff will present the current terms to the Board and provide additional feedback to Authority staff • Northern Larimer County Health District - Authority and Health District staff have met to discuss the terms of an allocation agreement - the conversation was productive, and staff has scheduled a second meeting to review the Health District’s response • Northern Water Conservation District - Authority staff remains in contact with Northern staff; however, no direct meetings have occurred - Northern has made their position relative to allocation clear SCHEDULE UPDATE A summary schedule is attached. (Attachment 1). This schedule is subject to change based on several factors. Below is a summary of key dates in the schedule: • Late September to February - A series of meetings with the PRC to review the URP and the Fiscal Impact Model (FIM) 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. • January and February - Several dates on which each affected tax entity’s board will consider approval of a tax allocation IGA. • March 24, 2019 - The URA Board considers approving the tax allocation IGAs. • April 16, 2019 - City Council conducts a public hearing to consider approval of the URP. AUTHORITY FINANCIAL IMPACTS This item provides an update on negotiations. The outcome of the negotiation will impact the Authority’s financial condition, but this updated itself does not. BOARD / COMMISSION RECOMMENDATION The Authority Finance Committee met on February 11, 2019 and received a similar update. Draft meeting minutes will be provided in a read-before packet on the day of the meeting (due to the availability of the minutes relative to the distribution of this packet). PUBLIC OUTREACH No public outreach has been completed on this item. ATTACHMENTS 1. Key Dates (PDF) 2. Powerpoint presentation (PDF) 4 Packet Pg. 36 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 11-Oct-18 12-Oct-18 PUBLIC OPEN HOUSE Financial Impact Model Review December 2019 10-Jan-19 Refer Urban Renewal Plan to P&Z 6-Nov-18 Work Session: Review Urban Renewal Plan 9-Nov-18 Public Hearing: Urban Renewal Plan 15-Nov-18 Distribute TIF Allocation IGAs January 2019 TIF Allocation Recommendations March 2019 Set Public Hearing for Urban Renewal Plan 5-Mar-19 LIBRARY: Review TIF Allocation IGA 10/30/18 - 2/27/19 No. CO Water Conservancy District 10/30/18 - 2/27/19 PSD: Review TIF Allocation IGA 11/9/18 - 3/11/19 COUNTY: Review TIF Allocation IGA 10/30/18 - 2/27/19 HEALTH: Review TIF Allocation IGA 10/30/18 - 2/27/19 TIF IGA Study Session Presentations to Taxing Bodies January 2019 TIF IGAs Adopted by Taxing Bodies March 2019 Review TIF Allocations 26-Mar-19 TBD Approve TIF Allocation IGAs and recommend Plan March 28 2019 Public Hearing: Urban Renewal Plan and Cooperation Agreement with City on Sales Tax 16-Apr-19 Redevelopment Agreement with Brinkman 24-Apr-19 Plan Formation Process Key Dates by Entity 10-Oct-18 ATTACHMENT 1 4.1 Packet Pg. 37 Attachment: Key Dates (7660 : Update: Tax Allocation Negotiations) 1 Josh Birks, Economic Health and Redevelopment Director February 27, 2019 College & Drake Urban Renewal Plan Update: Negotiations & Schedule College & Drake Urban Renewal Plan Update: Negotiations & Schedule ATTACHMENT 2 4.2 Packet Pg. 38 Attachment: Powerpoint presentation (7660 : Update: Tax Allocation Negotiations) Questions for the Board 1. Does the Board have any questions about the current negotiations in support of the College and Drake Urban Renewal Plan? 2 4.2 Packet Pg. 39 Attachment: Powerpoint presentation (7660 : Update: Tax Allocation Negotiations) Negotiations Update § Larimer County – Productive and nearing agreement § Includes: Foothills Gateway & Larimer County Pest Control § Poudre School District – Productive, key items remains unresolved § Library District – Productive, awaiting their Board’s feedback § Health District – Productive, awaiting feedback from their team § Northern Water – Minimal engagment 3 4.2 Packet Pg. 40 Attachment: Powerpoint presentation (7660 : Update: Tax Allocation Negotiations) Key Dates 4 PRC REVIEW Council Adoption April 16, 2019 Public Open House Oct. 10, 2018 P&Z Review Nov. 15, 2018 TAX ALLOCATIONS Authority Approves Allocations Mar. 24, 2019 Negotiations Entities Approve Allocations March 2019 Key Takeaway: continued delay; 120 days ends March 10, 2019* 4.2 Packet Pg. 41 Attachment: Powerpoint presentation (7660 : Update: Tax Allocation Negotiations) Questions for the Board 1. Does the Board have any questions about the current negotiations in support of the College and Drake Urban Renewal Plan? 5 4.2 Packet Pg. 42 Attachment: Powerpoint presentation (7660 : Update: Tax Allocation Negotiations)