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HomeMy WebLinkAboutAgenda - Mail Packet - 3/26/2019 - Urban Renewal Authority Board Meeting Agenda - March 28, 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 March 28, 2019 2:00 PM  PLEDGE OF ALLEGIANCE  CALL MEETING TO ORDER  ROLL CALL  AGENDA REVIEW  Executive Director’s Review of Agenda. City of Fort Collins Page 2  CITIZEN PARTICIPATION Individuals who 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  STAFF REPORTS  COMMISSIONER REPORTS 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. 1. Consideration and Approval of the Minutes of the February 27, 2019 Urban Renewal Authority Board Meeting. The purpose of this item is to approve the minutes from the February 27, 2019 Urban Renewal Authority Board meeting. 2. Resolution No. 095 of the Board of Commissioners of the Fort Collins Urban Renewal Authority Appointing Four Commissioners and the Executive Director to Serve on a Contract Review Committee for the Authority's New Legal Counsel. (staff: Josh Birks; 3 minute staff presentation; 15 minute discussion) The purpose of this item is for the Board of Commissioners to consider creating a new ad hoc committee to evaluate the Fort Collins Urban Renewal Authority’s current contract for legal services. This Resolution would appoint the Chair, three Commissioners and the Executive Director to the Committee. City of Fort Collins Page 3 3. City of Fort Collins and Urban Renewal Authority Cooperation Agreement Update. (staff: 10 minute staff presentation; 20 minute discussion) The purpose of this item is to review the terms of a proposed Cooperation Agreement with the City of Fort Collins for incremental property and sales tax revenues to be allocated to the proposed College and Drake Urban Renewal Plan. 4. Tax Entity Allocation Agreement and Schedule Update. (staff: Josh Birks; 10 minute staff presentation; 30 minute discussion) The purpose of this item is to provide the Fort Collins Urban Renewal Authority 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 (the 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. 5. Consideration of a motion to adjourn into executive session pursuant to C.R.S. §24-6-402(4)(e) to determine positions relative to matters that are subject to negotiation; develop strategy for negotiations and instruct negotiators regarding intergovernmental agreements.  OTHER BUSINESS  ADJOURNMENT Agenda Item 1 Item # 1 Page 1 AGENDA ITEM SUMMARY March 28, 2019 Urban Renewal Authority Board STAFF Delynn Coldiron, City Clerk SUBJECT Consideration and Approval of the Minutes of the February 27, 2019 Urban Renewal Authority Board Meeting. EXECUTIVE SUMMARY The purpose of this item is to approve the minutes from the February 27, 2019 Urban Renewal Authority Board meeting. ATTACHMENTS 1. February 27, 2019 (PDF) 1 Packet Pg. 4 City of Fort Collins Page 354 URBAN RENEWAL AUTHORITY BOARD February 27, 2019 3:00 PM • CALL MEETING TO ORDER • SWEARING-IN OF NEW BOARDMEMBER New Urban Renewal Authority Commissioner, Susan Gutowsky, was sworn in by Secretary Coldiron. • ROLL CALL PRESENT: Smith, Troxell, Cunniff, Horak, Wise, Febvre, Gutowsky ABSENT: Martinez, Stephens, Summers, Johnson Staff Present: Atteberry, Coldiron Legal Counsel: Carolynne White and Caitlin Quander, Brownstein Hyatt Farber Shreck • AGENDA REVIEW Executive Director Atteberry stated the two changes to the published agenda were to add the swearing in of Commissioner Gutowsky and possible consideration of a motion to adjourn into Executive Session. • CONSENT AGENDA Vice Chair Horak made a motion, seconded by Commissioner Cunniff, to adopt and approve all items on the Consent Agenda. RESULT: CONSENT AGENDA ADOPTED [UNANIMOUS] MOVER: Gerry Horak, District 6 SECONDER: Ross Cunniff, District 5 AYES: Smith, Troxell, Cunniff, Horak, Wise, Febvre, Gutowsky ABSENT: Martinez, Stephens, Summers, Johnson 1. Consideration and Approval of the Minutes of the December 20, 2018 Urban Renewal Authority Meeting. (Adopted) 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. (Adopted) 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 1.1 Packet Pg. 5 Attachment: February 27, 2019 (7831 : URA minutes 2/27) February 27, 2019 City of Fort Collins Page 355 this obligation. In addition, the 2019 City Budget includes additional funding for the Project from two sources in City: Engineering and Stormwater. • DISCUSSION ITEMS 3. Motion to Adjourn to Executive Session Vice Chair Horak made a motion, seconded by Commissioner Cuniff, that the Urban Renewal Authority go into Executive Session for the purpose of meeting with the Authority's attorneys and Authority staff to discuss the following matters as permitted under Colorado Revised Statute Sections 24-6-402(4)(b) and 24-6-402(4)(e): (1) to receive legal advice on specific legal questions and (2) to determine positions relative to matters that are subject to negotiations, develop a strategy for negotiations, and instruct negotiators regarding intergovernmental agreements. RESULT: ADOPTED [UNANIMOUS] MOVER: Gerry Horak, District 6 SECONDER: Ross Cunniff, District 5 AYES: Smith, Troxell, Cunniff, Horak, Wise, Febvre, Gutowsky ABSENT: Martinez, Stephens, Summers, Johnson 5. An Update on the Proposed College and Drake Urban Renewal Plan-Anticipated Public Improvements to be Funded from Increment Tax Revenue. (No Action Taken) 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. Josh Birks, Economic Health Director, stated this item includes a list of specific public improvements to be funded through any increment received through the negotiations with the other taxing entities. He requested Commissioners provide input as to the list and prioritization thereof. Birks discussed the identified intersection, bicycle and multi-use, and safety improvements for which tax increment spending is recommended. Additional categories for which tax increment spending is recommended include parking management, pedestrian and sidewalk improvements, landscaping and streetscape, and transit access and improvements, the largest of those being a proposed parking structure to support the Drake MAX station. Birks further discussed the recommendations of the plan area review committee (PRC) which is made of members of the affected taxing entities. Vice Chair Horak asked how the possible passage of the 0.6% sales tax would affect the plan. Birks replied the Authority would ask that the revenue be associated with the 2.25% rate and, if the general fund rate of the City would change, the 2.25% would continue to be referenced. Commissioner Wise commended staff and PRC work on the item. Commissioner Cunniff asked about the funding difference between the north and south sides of Drake Road. Birks replied the development-related financial gap relates solely to the south side as there has been no formal request from the north side development activity for direct assistance. 1.1 Packet Pg. 6 Attachment: February 27, 2019 (7831 : URA minutes 2/27) February 27, 2019 City of Fort Collins Page 356 Commissioner Cunniff asked if staff or the PRC has done analysis of the hotel not working financially and therefore becoming a blight in and of itself. He asked if the building could be easily repurposed. Birks replied that is not within the scope of the PRC and staff has not analyzed that particular question. Attorney White stated none of the funding goes into the vertical construction of the hotel. Birks noted any agreement with the developer would be conditioned upon successful completion of the project and providing proof of costs prior to receiving reimbursement. Use-neutral items will be funded initially. Birks requested input as to whether there is consensus that limiting the improvements to a series is something that should be included and whether the matrix is appropriate to be used in negotiations moving forward. Vice Chair Horak and Commissioner Wise replied in the affirmative. Commissioner Smith stated he prefers using TIF for larger, more catalytic projects. Commissioner Cunniff stated only a portion of the need for the pedestrian/bicycle grade-separated crossing is attributable to the blight remediation part of the project. He suggested a future capital tax might complete the project knowing there is a potential TIF match. Executive Director Atteberry agreed with Commissioner Cunniff that there could be other opportunities to use other resources to build capital enhancements. Commissioner Febvre agreed with Commissioner Cunniff. 5. Update: Tax Allocation Negotiations and Schedule. (No Action Taken) 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. Josh Birks, Economic Health Director, stated there are general provisions emerging that are consistent across all the intergovernmental agreements. Those provisions include imposing limitations on how much increment can be collected and how it can be used, which creates greater certainty over what the increment will provide for the community. Birks noted all IGAs will contain a statement that indicate they are not a precedent for future IGAs. Birks stated staff is anticipating presenting IGAs between the URA and the other entities at the next URA meeting in March. Chair Troxell requested Birks discuss the framework timeline. Birks replied the statute allows 120 days in which to try to reach a negotiated outcome prior to moving to remediation. • OTHER BUSINESS Commissioner Cunniff stated he would like the Authority to consider adding clauses to its legal agreement that clarify what limitations the Authority would like to place on the legal counsel based 1.1 Packet Pg. 7 Attachment: February 27, 2019 (7831 : URA minutes 2/27) February 27, 2019 City of Fort Collins Page 357 on advocacy in front of the member organizations. He suggested the small committee that negotiated the agreement could examine potential contract modifications along those lines. Vice Chair Horak suggested having an agenda item that would empower some subset of members to examine the topic and make a recommendation to the Authority. • ADJOURNMENT The meeting adjourned at 5:27 PM. ________________________________ Chair ATTEST: ________________________________ Secretary 1.1 Packet Pg. 8 Attachment: February 27, 2019 (7831 : URA minutes 2/27) Agenda Item 2 Item # 2 Page 1 AGENDA ITEM SUMMARY March 28, 2019 Urban Renewal Authority Board STAFF Josh Birks, Economic Health Director John Duval, Legal SUBJECT Resolution No. 095 of the Board of Commissioners of the Fort Collins Urban Renewal Authority Approving the Formation of the Legal Contract Review Committee. EXECUTIVE SUMMARY The purpose of this item is for the Board of Commissioners to consider creating a new ad hoc committee to evaluate the Fort Collins Urban Renewal Authority’s current contract for legal services. This Resolution would appoint the Chair, three Commissioners and the Executive Director to the Committee. STAFF RECOMMENDATION Staff recommends adoption of the Resolution. BACKGROUND / DISCUSSION New legal counsel was selected by the Board on October 12, 2018, in Resolution No. 092, appointing the law firm of Brownstein Hyatt Farber Schreck to represent the Fort Collins Urban Renewal Authority (the “Authority”) in all its legal matters. This proposed ad hoc committee is to review and make a recommendation to the Board regarding the Authority’s current contract with its legal counsel as it relates to potential conflicts of interest counsel may have in the future relating to its representation of the Authority. BOARD / COMMISSION RECOMMENDATION This committee will make a recommendation to the Board. PUBLIC OUTREACH There has been no additional public outreach for this item. ATTACHMENTS 1. Powerpoint presentation (PDF) 2 Packet Pg. 9 1 Outside Legal Counsel Contract Review Committee Josh Birks 03-28-2019 ATTACHMENT 1 2.1 Packet Pg. 10 Attachment: Powerpoint presentation (7823 : Contract Review Committee) Committee Structure 2 • Board Chair • Executive Director • Three Additional Commissioners to be named during the motion 2.1 Packet Pg. 11 Attachment: Powerpoint presentation (7823 : Contract Review Committee) Recommendation § Staff recommends adoption of the resolution. 3 2.1 Packet Pg. 12 Attachment: Powerpoint presentation (7823 : Contract Review Committee) -1- RESOLUTION NO 095 OF THE BOARD OF COMMISSIONERS OF THE FORT COLLINS URBAN RENEWAL AUTHORITY APPROVING THE FORMATION OF THE LEGAL CONTRACT REVIEW COMMITTEE WHEREAS, historically, the Fort Collins Urban Renewal Authority (the “Authority”) Board of Commissioners (the “Board”) consisted of just the seven members of the Fort Collins City Council, as authorized in C.R.S. § 31-25-115(1); and WHEREAS, historically, the Fort Collins City Attorney (the “City Attorney”) provided legal services to the Authority; and WHEREAS, as required by C.R.S. § 31-25-104(2.5), on July 9, 2018, four new commissioners were seated on the Board, one appointed by the Larimer County Board of Commissioners, one appointed by the school districts within the Authority’s boundaries, and one appointed by the special districts within the Authority’s boundaries; and WHEREAS, as a result of the new membership on the Board, the City Attorney advised the Authority that future conflicts of interest may arise for the City Attorney in representing and advising both the City and the Authority and their respective governing bodies and, therefore, the Authority should retain its own separate legal counsel; and WHEREAS, on August 24, 2018, the Board adopted Resolution No. 091 creating an ad hoc committee to identify, interview and recommend new legal counsel for the Authority; and WHEREAS, on October 12, 2018, the Board approved Resolution No. 092, appointing the law firm Brownstein Hyatt Farber Schreck as the Authority’s new legal counsel (“Legal Counsel”); and WHEREAS, Section 2 in Article III of the Bylaws provides that the Board may, from time to time, create either standing or ad hoc committees as deemed appropriate and appoint the members of such committees; and WHEREAS, the Board desires to create an ad hoc committee to potentially consider modifications to the existing contract between the Authority and Legal Counsel with regard to addressing any future conflicts of interest Legal Counsel may have in its future representation of the Authority (the “Legal Contract Review Committee”); and WHEREAS, the Board wishes to appoint to serve on the Legal Contract Review Committee four Board Commissioners and the Authority’s Executive Director, with the four Commissioners being made up of the Board’s Chair and at least one of the Commissioners recently appointed to the Board by the other governmental entities. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE FORT COLLINS URBAN RENEWAL AUTHORITY as follows: Packet Pg. 13 -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 Legal Contract Review Committee is hereby created as an ad hoc committee of the Board and appointed to serve on the Legal Contract Review Committee are the Authority’s Executive Director and the following four Board Commissioners: Chair Wade Troxell Commissioner ___________________ Commissioner _________________ Commissioner________________________ Passed and adopted at a regular meeting of the Board of Commissioners of the City of Fort Collins Urban Renewal Authority this 28th day of March, A.D. 2019. _________________________________ Chair ATTEST: _____________________________ Secretary Packet Pg. 14 Agenda Item 3 Item # 3 Page 1 AGENDA ITEM SUMMARY March 28, 2019 Urban Renewal Authority Board STAFF Josh Birks, Economic Health Director SUBJECT City of Fort Collins and Urban Renewal Authority Cooperation Agreement Update. EXECUTIVE SUMMARY The purpose of this item is to review the terms of a proposed Cooperation Agreement with the City of Fort Collins for incremental property and sales tax revenues to be allocated to the proposed College and Drake Urban Renewal Plan. STAFF RECOMMENDATION Staff recommends adoption of the Resolution. BACKGROUND / DISCUSSION Under state urban renewal law, the City of Fort Collins is recognized as a legally separate taxing entity, as such, allocation of the City's tax increment must be discussed and allocated in a similar agreement to that of its neighboring taxing entities. Given the nature of the project and taking PRC recommendations into account, URA staff has proposed 50% sales and property tax allocation amounts from the City to the plan area. Similar to IGAs proposed to other taxing entities, increment will be limited by duration (max 25 years), allocation, CAP (based on 2%) and specific improvements. Proposed City sales tax allocations are based on 2.25% sales tax rate, with the understanding that this rate may change in the upcoming election, staff has proposed to maintain the 2.25% sales tax rate for the purposes of this agreement. City property tax increments allocated to the plan area are at a higher rate than rates proposed to other taxing entities for the reason that this project has a very high impact on constituents of the City. CITY FINANCIAL IMPACTS Financial impacts to the City have been discussed with City Council, Council Finance Committee, URA Board and URA Finance Committee. The Council Finance Committee and URA Finance Committee have both recommended approval of this agreement. ATTACHMENTS 1. Powerpoint presentation (PDF) 3 Packet Pg. 15 1 Josh Birks, Economic Health and Redevelopment Director March 28, 2019 College & Drake Urban Renewal Plan Update: City Cooperation Agreement College & Drake Urban Renewal Plan Update: City Cooperation Agreement ATTACHMENT 1 3.1 Packet Pg. 16 Attachment: Powerpoint presentation (7813 : City of Fort Collins Co-op agreement with URA) Questions for the Board 1. Does the Board have any questions about the proposed contribution by the City in support of the College and Drake Urban Renewal Plan? 2. What additional information does the Board feel it will need in order to review this proposal? 2 3.1 Packet Pg. 17 Attachment: Powerpoint presentation (7813 : City of Fort Collins Co-op agreement with URA) Increment Limitations 3 Duration Allocation Revenue Cap Specific Improvements 3.1 Packet Pg. 18 Attachment: Powerpoint presentation (7813 : City of Fort Collins Co-op agreement with URA) Proposed City TIF Contribution: City’s Contribution includes two parts: 1. 100% of the City’s Property Tax Increment 2. 50% of the net new sales tax revenue generated by 2.25% tax rate § Excludes all future increases to the general fund rate § Nets out average sales from King Soopers store § A specific base amount will be stated in the agreement 4 3.1 Packet Pg. 19 Attachment: Powerpoint presentation (7813 : City of Fort Collins Co-op agreement with URA) Total Estimated City Contribution 5 Includes 2% growth/appreciation – basis of $ cap Taxing Entity / Revenue Source Mills / Rate Assumptions Annual Increment Total Increment City of Fort Collins / Property Tax 9.797 100% of Increment Committed $ 88,501 $ 2,835,000 City of Fort Collins / Share of Road & Bridge Property Tax 0.500 0% of Increment Committed $ - $ - City of Fort Collins / Sales Tax 2.25% 50% of Net New Increment Committed $ 316,713 $ 10,144,000 Total $ 405,214 $ 12,979,000 3.1 Packet Pg. 20 Attachment: Powerpoint presentation (7813 : City of Fort Collins Co-op agreement with URA) Estimated Total Sales Tax Revenue: City 6 City of Fort Collins General Fund (2.25%) Annual Growth Rate 2.00% 2021 TOTAL TOTAL General Fund $13,252,906 $676,654 $23,334,585 TOTAL City Pledged to Project (50% of King Soopers and Spradley Barr) $5,753,078 $316,716 $10,144,496 City of Fort Collins Dedicated Sales Taxes Annual Growth Rate 2.00% Present Value 2021 TOTAL Natural Areas Tax (0.25%) $980,052 $52,874 $1,729,113 Street Maintenance Tax (0.25%) $980,052 $52,874 $1,729,113 Capital - CCIP (0.25%) $980,052 $52,874 $1,729,113 KFCG (0.85%) $3,332,176 $179,771 $5,878,983 Total Other City Sales Tax $6,272,331 $338,393 $11,066,321 TOTAL CITY SALES TAXES $19,525,237 $1,015,047 $34,400,906 Present 3.1 Packet Pg. 21 Attachment: Powerpoint presentation (7813 : City of Fort Collins Co-op agreement with URA) Estimated Sales Tax Revenues: Others 7 City of Fort Collins Lodging Tax (3%) Annual Growth Rate 2.00% Present Value 2021 TOTAL Hotel Site $2,226,648 $110,192 $3,939,769 All Other Sales Taxes Generated 2.00% Present Value 2021 TOTAL All Parcels State of CO (2.9%) $10,408,544 $560,485 $18,364,826 Larimer County (0.80% total) $2,871,323 $154,616 $5,066,159 Base Tax (0.55%) $1,974,034 $106,299 $3,482,984 Mental Health Tax (0.25%) $897,288 $48,318 $1,583,175 3.1 Packet Pg. 22 Attachment: Powerpoint presentation (7813 : City of Fort Collins Co-op agreement with URA) Key Dates 8 PRC REVIEW Council Adoption TBD Public Open House Oct. 10, 2018 P&Z Review Nov. 15, 2018 TAX ALLOCATIONS Authority Approves Allocations Apr. 24, 2019 Negotiations Entities Approve Allocations March/April 2019 Key Takeaway: Delayed by discussions with PSD 3.1 Packet Pg. 23 Attachment: Powerpoint presentation (7813 : City of Fort Collins Co-op agreement with URA) Questions for the Board 1. Does the Board have any questions about the proposed contribution by the City in support of the College and Drake Urban Renewal Plan? 2. What additional information does the Board feel it will need in order to review this proposal? 9 3.1 Packet Pg. 24 Attachment: Powerpoint presentation (7813 : City of Fort Collins Co-op agreement with URA) Agenda Item 4 Item # 4 Page 1 AGENDA ITEM SUMMARY March 28, 2019 Urban Renewal Authority Board STAFF Josh Birks, Economic Health Director SUBJECT Tax Entity Allocation Agreement and Schedule Update. EXECUTIVE SUMMARY The purpose of this item is to provide the Fort Collins Urban Renewal Authority 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 (the 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. BACKGROUND/DISCUSSION Under state urban renewal law, taxing entities affected by proposed Urban Renewal Plan must be included in the allocation discussions of their tax increment. Drake and College proposed Urban Renewal Plan area overlays five separate taxing entities in addition to the City. These include Larimer County, Foothills Gateway, Larimer County Pest Control, Health District, Library District, Poudre School District and Northern Colorado Water Conservancy District. Each of these entities has a different mill levy rate and mission based on voter approval. Per state urban renewal law, URA staff began 120 day Tax Increment negotiations with each of these entities in fall 2018. Tax increment discussions were based on the Fiscal Impact Model (FIM), Plan Area Review Committee (PRC), Qualitative Analysis (QA) all procedural measures outlined by the Larimer County Increment Financing Study completed in 2016. With the exception of Northern Colorado Water Conservancy District, each taxing entity participated in fruitful tax increment negotiations with URA staff. Taxing entities participating in the discussions all expressed their desire to limit their expenditures based on duration, allocation, revenue cap and specific improvements, attached as an exhibit to their IGA. CITY FINANCIAL IMPACTS City financial impacts have been discussed with the City Council Finance Committee, URA Finance Committee, City Council and URA Board. The City Council Finance committee, URA Finance Committee and Board respective to each taxing entity recommended approval of the IGAs. ATTACHMENTS 1. Powerpoint presentation (PDF) 4 Packet Pg. 25 1 Josh Birks, Economic Health and Redevelopment Director March 28, 2019 College & Drake Urban Renewal Plan Update: Allocation Agreement Update College & Drake Urban Renewal Plan Update: Allocation Agreement Update ATTACHMENT 1 4.1 Packet Pg. 26 Attachment: Powerpoint presentation (7812 : Update TIF Allocation IGAs) Questions for the Board 1. Does the Board have any questions about the allocations of incremental tax revenue to support of the College and Drake Urban Renewal Plan? 2 4.1 Packet Pg. 27 Attachment: Powerpoint presentation (7812 : Update TIF Allocation IGAs) Increment Limitations 3 Duration Allocation Revenue Cap Specific Improvements 4.1 Packet Pg. 28 Attachment: Powerpoint presentation (7812 : Update TIF Allocation IGAs) General Provisions Increment Limitations: § Duration – Max 25 years § Allocation – Varies § Cap – Based on 2% growth § Expenses – Specific list; escalated annually by ENR Additional Provisions: § No Precedent § Annual Report to Entities 4 4.1 Packet Pg. 29 Attachment: Powerpoint presentation (7812 : Update TIF Allocation IGAs) City Allocation Inputs City Finance Committee Met and Recommended Proceeding 5 Taxing Entity / Revenue Source Mills / Rate Assumptions Annual Increment to Entity Annual Increment to URA URA Increment Revenue CAP City of Fort Collins / Property Tax 9.797 100% of Increment Committed $ - $ 88,501 $ 2,835,000 City of Fort Collins / General Fund Sales Tax 1 2.25% 50% of Net New Increment Committed $ 316,713 $ 316,713 $ 10,144,000 City of Fort Collins / Dedicated Sales Tax 1.60% No Increment Committed $ 338,393 $ - $ - $ 655,105 $ 405,214 $ 12,979,000 1 Excludes Sales at the ExistingKingSoopers being relocated Subtotal / City of Fort Collins 4.1 Packet Pg. 30 Attachment: Powerpoint presentation (7812 : Update TIF Allocation IGAs) Other Entity Allocation Inputs 6 Taxing Entity / Revenue Source Mills / Rate Assumptions Annual Increment to Entity Annual Increment to URA URA Increment Revenue CAP Larimer County / Property Tax 2 21.653 60% of Increment Committed $ 78,241 $ 117,361 $ 3,759,000 Foothillls Gateway / Property Tax 0.750 No Increment Committed $ 6,775 $ - $ - Health District / Property Tax 2.167 66% of Increment Committed $ 6,656 $ 12,920 $ 414,000 Library District / Property Tax 3.000 66% of Increment Committed $ 9,214 $ 17,886 $ 573,000 Poudre School District / Property Tax 52.630 20.25 Mills of Increment Committed $ 292,504 $ 182,928 $ 5,859,000 NorthernWater / Property Tax 1.000 No Increment Committed $ 9,033 $ - $ - Larimer County Pest Control District / Property Tax 0.142 No Increment Committed $ 1,283 $ - $ - $ 403,706 $ 331,095 $ 10,605,000 2 Excludes 0.7500 Mills dedicated to Foothills Gateway Subtotal / All Other Entities Includes 2% growth/appreciation – basis of $ cap 4.1 Packet Pg. 31 Attachment: Powerpoint presentation (7812 : Update TIF Allocation IGAs) Combined Allocations Taxing Entity / Revenue Source Mills / Rate Assumptions Annual Increment to Entity Annual Increment to URA URA Increment Revenue CAP $ 655,105 $ 405,214 $ 12,979,000 Larimer County / Property Tax 2 21.653 60% of Increment Committed $ 78,241 $ 117,361 $ 3,759,000 Foothillls Gateway / Property Tax 0.750 No Increment Committed $ 6,775 $ - $ - Health District / Property Tax 2.167 66% of Increment Committed $ 6,656 $ 12,920 $ 414,000 Library District / Property Tax 3.000 66% of Increment Committed $ 9,214 $ 17,886 $ 573,000 Poudre School District / Property Tax 52.630 20.25 Mills of Increment Committed $ 292,504 $ 182,928 $ 5,859,000 Northern Water / Property Tax 1.000 No Increment Committed $ 9,033 $ - $ - Larimer County Pest Control District / Property Tax 0.142 No Increment Committed $ 1,283 $ - $ - $ 403,706 $ 331,095 $ 10,605,000 $ 1,058,811 $ 736,309 $ 23,584,000 1 Excludes Sales at the Existing King Soopers being relocated 2 Excludes 0.7500 Mills dedicated to Foothills Gateway Subtotal / City of Fort Collins Subtotal / All Other Entities Total 7 4.1 Packet Pg. 32 Attachment: Powerpoint presentation (7812 : Update TIF Allocation IGAs) Schedule Updates § Moving forward with IGA refinement and consideration: § Larimer County – Staff has committed to moving forward § Health District – Working with staff to finalize – Early April § Library District – Working with staff to finalize - April § URA Board will review IGAs (from above) at April 24 Board Meeting § Delayed presentation of the Plan to City Council for consideration from April 16th until later this year 8 4.1 Packet Pg. 33 Attachment: Powerpoint presentation (7812 : Update TIF Allocation IGAs) Key Dates 9 PRC REVIEW Council Adoption TBD Public Open House Oct. 10, 2018 P&Z Review Nov. 15, 2018 TAX ALLOCATIONS Authority Approves Allocations Apr. 24, 2019 Negotiations Entities Approve Allocations March/April 2019 Key Takeaway: discussions with PSD delayed 4.1 Packet Pg. 34 Attachment: Powerpoint presentation (7812 : Update TIF Allocation IGAs) Questions for the Board 1. Does the Board have any questions about the allocations of incremental tax revenue to support of the College and Drake Urban Renewal Plan? 10 4.1 Packet Pg. 35 Attachment: Powerpoint presentation (7812 : Update TIF Allocation IGAs)