HomeMy WebLinkAboutMemo - Mail Packet - 6/30/2020 - Memorandum From Josh Birks And Rachel Rogers Re: Use Of Downtown Gid Funding: Support Dda Scope Enhancement Due To Covid-19 Impacts During 2020 And 2021Economic Health Office
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Fort Collins, CO 80522
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MEMORANDUM
DATE: June 24, 2020
TO: Mayor and Councilmembers
THRU: Darin Atteberry, City Manager;
Kelly DiMartino, Deputy City Manager; and
Jacqueline Kozak-Theil, Chief Sustainability Officer
FROM: Josh Birks, Economic Health and Redevelopment Director; and
Rachel Rogers, Senior Specialist, Economic Health
RE: USE OF DOWNTOWN GID Funding: Support DDA scope
enhancement due to COVID-19 impacts during 2020 and 2021
The health and vibrancy of our downtown business community is essential to Fort Collins’
overall economic health. Historically, the Downtown Business Association (“DBA”) has played
an important role in these efforts. As a result of COVID impacts, the DBA is being temporarily
paused due to financial insolvency. Approximately 90% of the DBA’s annual revenue comes
from events and sponsorships which are not feasible to continue in 2020. To preserve certain
essential services, the Downtown Development Authority (“DDA”) is assuming additional scope
for marketing and critical business support functions. Staff is recommending the City provide
temporary financial assistance to support this effort. The purpose of this memo is to provide an
overview of the impact of repurposing General Improvement District #1 Downtown (“GID”)
funds to provide this financial support.
BOTTOM-LINE:
Staff recommends the GID contribute $180,000 in 2020 and $125,000 in 2021 (from existing
reserves) to the DDA to enable the marketing and critical business support functions
previously delivered by the DBA. Available GID reserves, including 2021 budgeted expense
items, are estimated at about $800,000. The 2020 funding may be reimbursable from CARES
funding, in which case the reimbursement would go back into the GID reserves. The DDA has
indicated it will not need on-going funding for these functions beyond 2021.
Any contribution from the GID for this purpose, will require an appropriation action by the GID
Board (City Council) for 2020 and will be included in the 2021 GID budget request.
BACKGROUND/DISCUSSION:
On June 17, 2020, the DBA Board of Directors votes to temporary suspend operations of the
DBA Earlier this month the Approximately 90% of The Downtown Business Association The
DDA has requested a GID contribution of $180,000 in 2020 and $125,000 in 2021 so that the
DDA can support functions previously delivered by the DBA. The GID would use existing
reserves, which have accumulated over time. The original intent for these reserves was to
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support future large-scale projects, like the Old Town Square renovation, Oak Street Plaza
construction and Alley projects.
Staff has evaluated the request and determined that a contribution of $305,000 with the
potential for reimbursement of $180,000 will not adversely impact the mission and objectives of
the GID in the near term. However, additional contributions beyond the current request will
likely negatively impact the current level of service provided to businesses in the GID.
Staff recommends using GID funds to provide the contribution to the DDA requested in both
2020 and 2021. Supporting the DDA in this manner will leave the GID with approximately
$500,000 in reserves at the end of 2021.
OVERVIEW OF CURRENT ACTIVITIES:
2020 Planned Expenditures – Existing budget for capital and maintenance is $250,000. In
2020, Engineering provided the GID working group a prioritized list of intersections that
need repair and replacement in the GID area. To-date, the following work has been
completed or scheduled:
o Mason & Mountain – all four corners paver repair and replacement.
o Mason & Laporte – all four corners paver repair and replacement.
o Repaired SE corner of College & Oak (in front of the Museum – repaired tree curbing
and reset pavers).
o Repaired SE corner of College & Laporte - replaced and reset pavers).
o Repaired SW corner of College & Maple - replaced and reset pavers).
o Mountain & Mathews - will begin that work on July 6th with Storm Water performing the
sewer work first and then pavers will be replaced/reset.
o Walrus Ice Cream – parking and bicycle rack reconfiguration.
o ENT Credit Union (243 N College Ave.) – sidewalk, curb and gutter work.
Example of needed repair:
Before After
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Engineering is doing a GID area walk-through to reassess the intersection list and determine
what additional work is needed for 2020 and for 2021.
2021 Planned Expenditures – Proposed 2021 budget for capital and maintenance is
$450,000. The 2021 GID budget includes:
o Funding for paver and sidewalk maintenance and repair.
o Safety related Parks and Forestry work, such as replacement of tree grates and tree
pruning.
o Contribution of $90,000 for downtown holiday lights (increased from $55,000 to include
the portion formerly covered by the DBA).
o Contribution of $300,000 to the DDA for the DDA alley enhancement projects planned
for 2021 construction, including: (1) Oak to Olive St, W of College Ave (behind Ace
Hardware) and (2) Tenney Court to Mason Street adjacent to the Civic Center Garage.
Other Capital Projects – In addition, the GID budget include contributions to fund at least
two other projects in the near-term, the Linden Street Project and the Mountain Avenue
Redesign Project. GID funding for these projects would likely be used to support bike racks,
signage and other similar items. Although these projects have been delayed due to
COVID, once they are scheduled, GID will determine what level of funding it can contribute.
NEXT STEPS:
An appropriation will be brought forward on August 4 for the GID Board’s consideration.
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