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HomeMy WebLinkAboutAgenda - Mail Packet - 10/13/2020 - Urban Renewal Authority Finance Committee Agenda - October 8, 2020 Urban Renewal Authority 222 LaPorte Avenue PO Box 580 Fort Collins, CO 80522 970.416.4349 970.224.6107 – fax fcgov.com AGENDA URA Finance Committee October 8, 2020 3:00 pm – 4:00 pm 1. June 11, 2020 Meeting Minutes 2. North College Community Investment Plan 3. 2021 Budget This meeting will be held digitally via Microsoft Teams. To join this meeting, please use the link below: https://teams.microsoft.com/l/meetup- join/19%3ameeting_MzkzNTU1M2EtYjBmOC00NWE1LThlY2MtMjY1MDM0NTEyYjli%40thread. v2/0?context=%7b%22Tid%22%3a%2247fa2f5f-0d0a-4a68-b431- 6d1a27b66660%22%2c%22Oid%22%3a%220fa9b750-1577-4182-9bd5-e34aea8d9a3e%22%7d If you are unable to join the video conference call, you may dial +1 970-628-0892 on your phone. The conference ID is 306 883 773#. Other business: Urban Renewal Authority 222 LaPorte Avenue PO Box 580 Fort Collins, CO 80522 970.416.4349 970.224.6107 – fax fcgov.com AGENDA URA Finance Committee June 11, 2020 3:00 pm – 4:00 pm Meeting stated: 3:06pm by Wade Present: Joe Wise, Christophe Febvre, Wade Troxell, Ross Cunniff, Ken Summers Staff: Darin Atteberry, Josh Birks, Clay Frickey, Jennifer Shagin, Travis Storin Others: Patrick Rowe 1. Approval of March 4, 2020 minutes Motion: Joe Wise. Second: Christophe. Passed 4-0-0 2. Prospect South Marriot Hotel Clay overviewed the project, showed map of the project and a brief overview of the proposed development. Project is proposed to be a 6-story hotel with 149 rooms and amenities such as a lounge, restaurant and bar. It is located in the general commercial zone with a transit overlay zone, across the street from the Prospect South Max Station. The total project cost is between $38 and $39million dollars, according to Larimer County property accessor the current value is $2million and upon redevelopment the property will be valued at roughly $17million. This will generate roughly $413,000 in incremental property tax revenue annually. The applicant is asking for $4million or 65% of the tax increment revenue generated by this project. The eligible expenses in the application include, public improvements, environmental sustainability, design enhancements, city required enhancements, site specific and redevelopment challenges, which brings the total reimbursement request to $4million in reimbursement expenses. EPS found Urban Renewal Authority 222 LaPorte Avenue PO Box 580 Fort Collins, CO 80522 970.416.4349 970.224.6107 – fax fcgov.com there is a $9million dollar financial gap, without assistance the project is infeasible. Terms proposed by applicant is that they would receive 100% of the incremental revenue for 10 years, then 100% of the increment will be given back to the URA thereafter. Questions: 1. If the committee agrees with the reimbursement terms proposed by the applicant? 2. What questions or concerns does the URA Finance Committee have that we need to address before this goes before the URA Board? Ross: What is URA policy on TIF percentage that we share? Clay: Generally, the URA only grants 50% of incremental revenue for a project. However there have been instances where the URA has granted more, such as for the Lyric project in North College. Ross: I think this is an existing policy that we would have to waive. I think some follow up to this offline could be very helpful. Josh: Sure, we can follow up with this. Technically these are viewed as guidelines, but we can certainly provide added detail on where this came from. Another point is that the 50% was offered when we did up front incentives, now that we have a pay overtime structure this policy may need to be revisited to better reflect how deals are structured now. Ross: My understanding was that the 50% TIF share was for the other taxing entities? That is my perspective but I will leave it up to discussion. Joe: For me, I am having a hard time understanding, why we should go beyond our guidelines for a hotel? This does not meet any of the critical or community needs that we set for ourselves. I do not think you can make a case that we need to go beyond our guidelines to Urban Renewal Authority 222 LaPorte Avenue PO Box 580 Fort Collins, CO 80522 970.416.4349 970.224.6107 – fax fcgov.com create this project. I think this project will develop regardless of if the URA helps or not, from my point of view, it is just taking money out of the taxing entities. If I were to support this project at all, I would not support going beyond the 50% and I think the developer needs to make a stronger case that this deserves the TIF. Clay: The application included a number of public benefits identified by the applicant, and it mostly dealt with redeveloping underutilized parcels in a key portion of the city. It would helpful for us to hear from the committee what needs to be addressed here before the applicant goes to the board? That way we can adequately address the issue before this goes to the Board. Joe: I think there’s a real question as to whether this deserves TIF at all, let alone 65%. I think the applicant is going to have to be prepared to justify a reasonable ask for the Board. Christophe: I have similar questions, but I am also trying to think through the distinction between the Finance Committee and The URA Board? Has this project been looked at with the COVID 19 overlay impact? I guess I have to assume that all of our previous work and agreements that we have at Drake and College will hold true for this as well, correct? Josh: One of the challenges that I think we will have, is that there are plan areas that predate the most recent legislative changes. This is one of those plan areas that was formed before the most recent legislative changes and so it is also an area where all the increment flows into the plan area. Because this plan area was formed prior to the state legislative changes, there are slightly different rules to the road that must be followed here. Drake and College was the first project that we created after the state legislative changes. The board has shared in the past that they want to have a strategic plan in place for this area and I know that is challenging for the URA because each of our plan areas that we have brought forward have a different context that the Board has to think threw in a different mannor. Urban Renewal Authority 222 LaPorte Avenue PO Box 580 Fort Collins, CO 80522 970.416.4349 970.224.6107 – fax fcgov.com Christophe: I would call this awkward; we’ve invited different taxing entity members into a conversation where they really don’t have a say. I’m struggling to see what benefit there is for the school district here. It is far from neighborhoods, schools, parks, and roads that serve our schools, I am struggling to find a benefit for the school district here. Josh: To clarify, we are asking you to be a URA Board member, not a liaison, that is probably the most awkward part of all of this. Christophe: We are still asked to bring the perspective of our boards to this and from there I have to work hard to think through this project. Josh: Again, this is an important distinction. Right now, legally this plan area is entitled to collect all of the increment to achieve the purposes for which the plan was created. What we do with the funds and how we invest, is a very important question. Are we achieving the right objectives here? I just want to make sure we are all grounded in this. Christophe: This brings us back to all of the work we did in the retreats, if we apply that as an overlay, it may help the conversation move forward for this project. Wade: That’s a great perspective and this plan area was formed long before other taxing entities were brought to the table. This conversation does provide important context for the project. Other Board members? Joe: I distinctly recall at the retreat, talking about the hotel at Drake and College and some of our board members were upset with tax dollars going to a hotel. We need to be aware that there will be opposition to incentivizing a new hotel when small businesses are suffering so much now. Wade: Josh, can you address the public benefits here? This is a dangerous traffic area because cars are accelerating and decelerating, there are huge potholes and the parking area traffic flow Urban Renewal Authority 222 LaPorte Avenue PO Box 580 Fort Collins, CO 80522 970.416.4349 970.224.6107 – fax fcgov.com can be dangerous. This project is not just about a hotel, it is a project that has a number of community improvements. Josh: There will be improvements to the sidewalks, roads and beyond traffic other public benefits include addressing stormwater issues, I will let Clay breakdown the public improvements. Clay: There would not be improvements along Prospect since this area was recently redone including the landscape medians, intersection, and sidewalk. Improvements from this project will include, addressing the parkway, landscaping along College, detached sidewalk that is in line with the Mid Town in Motion plan, parking lot, stormwater improvements and realignment of the stormwater outfall. Joe: It appears that the public improvements and environmental sustainability components will only be about half of the request. I am wondering if the applicant has interest in scaling back the TIF request to only include the public improvements? I understand the hotel require a return on costs of 7.5% which is a pretty good return, I am wonder if the applicant would have any interest in scaling back their request, return on cost and only using TIF for public improvements? Josh: To provide some background on how determination of cost is made, we do not make a determination of this as staff on what the Return on Investment (ROI) should be, we contract that out to EPS. EPS does a full and detailed analysis of what can be included as a financial gap, project risk and what cost of the project is. It can be challenging to understand what a reasonable rate of return is verses the risk of real estate development. Real estate development is not a liquid investment; it has a lot of risks, construction risks and it takes longer for the return to be realized which is often the reason why the rate of return is higher. Staff does not make a determination of what is a reasonable TIF ask or target of return. EPS looks at current market conditions, what projects are trading for etc.. and use that to evaluate what a reasonable rate of return will be. This is how the number is determined for financial gaps. Urban Renewal Authority 222 LaPorte Avenue PO Box 580 Fort Collins, CO 80522 970.416.4349 970.224.6107 – fax fcgov.com Wade: What about the catalytic impact that this project can have? It sits between two strip malls at a key intersection in Fort Collins? We use the word accelerate, enhance, create, how would this project do this? And what would this project do for the area? Josh: Historically, we have tied projects to create, accelerate and enhance all in the service to prevent the spread of blight. The land here is that the current uses are not the highest and best use, the question then becomes is this project catalytic? We have seen that investment in underutilized property increases investment in the surrounding properties without any tax increment assistance. We would view an investment here as something that would likely increase investment in the surrounding properties, but we have not had this analyzed by a 3rd party. We can say that when we see investment occur in areas such as this, it tends to have a spill over affect. Ross: Have we tried to analyze the impacts of property tax evaluations of the next few years? Clay: We really do not know what the impact will be to property tax evaluations over the next few years. I have been talking with the County offline about property taxes and they are unclear what will happen with property tax evaluations because of the pandemic. The lucky thing for us is that Larimer County did do a property assessment last year, which sets the value for the next two years. With the URA collecting year in arrears essentially, we are projecting for the revenues to be somewhat stable over the next three years but we will know until the assessor goes back and evaluates. Josh: I would also like to add that we are extremely conservative in our financial projections, if I remember correctly, we tend to keep this flat over time. This way when and if there is a downturn, we are still within the range of what we have projected. Clay will take a look at this and confirm what our assumptions are. Urban Renewal Authority 222 LaPorte Avenue PO Box 580 Fort Collins, CO 80522 970.416.4349 970.224.6107 – fax fcgov.com Christophe: Would the URA have the ability to use the same financial TIF share numbers that we agreed upon at Drake and College for this project or plan area? Josh: The URA has the ability to direct the funds to deliver on the mission for which the plan was created. Mechanically, there are a number of different ways as to how this can be achieved. Thinking off the top of my head, I think we as staff have recognized that this plan area does not have the benefit of the detail of work done at Drake and College and in the North College area. For me, I think looking at this here can be a great conversation, and part of the bigger conversation of what do we do with it for the next 20years? Do we want to retain the funds or handing the funds back to our taxing entities? Do we want to stay the course? These conversations are all work to come and could be done at Prospect South. If we did this for each project as we move along if would be difficult because it would require more ongoing calculation and maintenance of available increment for each parcel. This is all feasible, but it could lead to us investing a lot of time and money into a project that in the end will be a modest return. Clay: Real quick, I did take a look at the analysis from EPS and EPS assumed a flat evaluation for the redevelopment, it did not assume that property value will increase with the new project and keeps the financial projections very conservative. Ross: So basically, it assumes the property evaluations of the improvements is all the increment we ever get? Clay: Yes. Wade: Do we agree with the reimbursement terms? What other questions do we have? Joe: I do not agree going beyond 50% investment share. I might be convinced to shorten the term a little bit, but I do not see this as a mission critical project that we should bend our guidelines for or the amount of the investment. Urban Renewal Authority 222 LaPorte Avenue PO Box 580 Fort Collins, CO 80522 970.416.4349 970.224.6107 – fax fcgov.com Ross: I agree with Joe, I don’t think we should go beyond the 50%. I think the rest of the discussion is for the full URA Board. Ken: That intersection can be a nice improvement there, but with the way the economy is right now, everything is up in the air. Thinking long term, I think it can be of value to the community and the URA. Wade: I think the project has some good projects and good application of those elements for the tool of the URA used in the community. Clay: What I have heard is that, we’ll have the applicant bring back why they are asking for 65%, not 50% and fleshing out the community benefits this project will bring from the perspectives of the other taxing entities as well. Josh: I would like to run this through the filter set that the board put together the end of last year and beginning of this year as another way of framing the context. Christophe: I would like to know why the applicant wants the allocation they are asking for. I think the project itself looks good. I think the project looks worthwhile to the City; I just have to think through the school district end of it. Other business: N/A Next URA board meeting will be 6/25/2020 Meeting ended 3:55pm by Wade Troxell Other business: URA FINANCE COMMITTEE AGENDA ITEM SUMMARY Staff: Clay Frickey, Redevelopment Program Manager Date: October 8, 2020 SUBJECT FOR DISCUSSION: North College Community Investment Plan EXECUTIVE SUMMARY Staff collaborated with Institute for the Built Environment (IBE) and The Family Center/La Familia (TFC/LF) on a series of public workshops asking the North College community how they would like to see the Urban Renewal Authority (URA) invest its money in the North College plan area over the next 10 years. IBE produced a report summarizing this outreach that the URA Board considered in August 2020. To achieve the outcomes desired by the community, URA staff have been developing an investment plan that will guide the URA’s decision making process for how to allocate its remaining money in the North College plan area. The investment plan will be organized by outcome area similar to those identified in the IBE report. These outcomes are: • Complete, vibrant neighborhood • Community hub • Infrastructure improvements The investment plan will contain short, medium, and long-term strategies by outcome area. Staff have proposed a set of strategies for each outcome area by timeframe. These strategies will guide the URA’s investment decisions. The plan area should accrue $13.8 million in cash by 2030 that the URA Board can invest. The URA Board will consider a final investment plan in November that will contain recommended financial allocations, alignment with other plans, and metrics/indicators. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED Do you agree with the strategies presented? What other strategies would help the URA achieve the objectives outlined in the IBE report? What additional information would be helpful for presenting this to the Urban Renewal Authority Board? BACKGROUND/DISCUSSION The North College Urban Renewal Plan Area will generate tax increment revenue until 2029. With 10 years remaining in the North College plan area’s revenue generation period, staff sought direction from the Urban Renewal Authority (URA) Board and the community on how best to invest in the North College community. In partnership with Institute for the Built Environment (IBE) and The Family Center/La Familia (TFC/LF), staff held a series of public workshops on how the URA could best invest in the community over the next 10 years. IBE produced a report summarizing the findings of these workshops. URA staff presented this report to the Board on August 27, 2020. The Board expressed its appreciation for the findings of the workshop series and gave staff direction to create an investment plan. This investment plan would guide the actions of the URA for the North College Plan Area over the next 10 years. The URA’s investment plan would align with the desires of the community, the URA strategic plan, and goals and objectives of all taxing entities (the City of Fort Collins, Larimer County, Poudre School District, etc.). Investment Plan Overview The investment plan is organized around the major themes identified by the community and articulated in the IBE report. These themes are: • Complete, Vibrant Neighborhood • Community Hub • Infrastructure Improvements The IBE report also identifies a community priority around Recreation & Connectivity. Recreation projects would support the creation of a complete, vibrant neighborhood and are incorporated into that theme. Connectivity opportunities would require investment in infrastructure and folds neatly into the priority for infrastructure improvements. Complete, Vibrant Neighborhood A complete, vibrant neighborhood is one where community members can accomplish most of their day-to-day tasks within their neighborhood. Community members identified many vital components to a complete, vibrant North College neighborhood through the workshop series. Some of these components include: • Support and encourage small businesses • Affordable housing, including preservation of mobile home parks • Assets reflective of, supporting, and attuned to Latinx culture, businesses, and families o Food and entertainment o Health services o Additional affordable child chare o Library/community college branch o Highlight local art / artist throughout corridor o Spanish language / Latinx movies Short Term Strategies • Cultivate partnerships - Staff proposes acting as a convener of community members, developers, representatives from all taxing entities (City, County, School District, Library District, etc.), and others. This will be an opportunity for all stakeholders to develop a shared vision for specific kinds of development that will help make North College a more complete, vibrant neighborhood. Staff will look to other communities that have had success in community led development and apply lessons these communities have learned to the work on North College. • Small business support – Many small businesses are struggling amidst the COVID-19 pandemic. The URA could support the grant programs offered by the City as part of the CARES Act. This would allow the URA to help stabilize small businesses until the end of the pandemic. Medium Term Strategy • Pilot community hub programs – In the medium term, community partners can work with the URA on piloting programs that would be integrated into the community hub. This would provide services desired by the community and present an opportunity to test services in a cost-effective way. Long Term Strategies • Acquire property for mixed-use development – Acquiring property would allow the URA to issue a RFP and find qualified development partners that could deliver a development program the community desires. • Repayments fund community objectives - As development occurs and taps into stormwater infrastructure and takes access from Mason Street, the URA and City will seek repayment from developers. Repayments to the URA can go into a fund that helps fulfill other community objectives. If a development meets objectives identified by the community, such as affordable housing, the URA could waive its repayment to incentivize the type of development desired by the community. This system would help achieve legacy projects for the plan area and incentivize the kind of development desired by the community in the North College plan area. Community Hub Community members galvanized around the idea of a community hub that could support the needs of the neighborhood. The concept of the community hub is that it could serve many purposes for the broader North College community and have culturally attuned services and amenities for the Latinx community. Some of the amenities community members would like to see in a community hub include: • A library branch • Workforce development and job training • Indoor community and recreation space • Multi-purpose space for youth activities, seniors, cultural celebrations, etc. • Small business incubator space • Family and community health support services Short Term Strategy • Begin community-based design process - For a community space such as this to be successful, the community must buy-in and feel a sense of ownership over the space. The URA could act as a convener for facilitating a community-based design process. The first year would focus on developing relationships and building a shared vision for the community hub while identifying opportunities to improve existing services in the interim. This will provide the foundation to find the appropriate partners that can help develop the community hub in year two. Medium Term Strategy • Forge development partnerships - The URA will not have all the funds necessary to develop a community hub on its own. Community and development partners will help bring capital and expertise to the community hub to help make the community hub a reality. Long Term Strategy • Develop community hub – Continue work with community and development partners to develop community hub that aligns with the needs and vision established by the community. Community members will continue to drive the design and programming of the community hub. Infrastructure Improvements One of the focus areas of the North College Corridor Plan from 2007 and adoption of the North College Urban Renewal Plan was addressing infrastructure deficiencies throughout the North College corridor. In 2010, City Council adopted the North College Infrastructure Funding Plan to guide implementation of the North College Corridor Plan. This plan identified infrastructure improvements within the plan area, estimated costs, funding sources, and priority levels for each project. This document has successfully guided tens of millions of dollars in public infrastructure investment in the corridor. A handful of projects identified in the Infrastructure Funding Plan remain unbuilt that help inform the investment plan and can form the foundation of the Board’s investment in infrastructure. Short Term Strategy • Continue support of existing projects - The City’s Stormwater and Engineering departments have begun work on stormwater improvements and establishing the Mason Street corridor west of College Ave. Stormwater completed 10% design of the stormwater improvements earlier in 2020. Engineering staff are in the process of acquiring right-of-way for the Mason Street corridor. The URA contributed $300,000 to the combined stormwater and Mason Street project in 2019 with the City contributing $467,800. Stormwater submitted a budget offer as part of the City’s Budgeting for Outcomes process to continue this project in 2021. The budget offer requests $1.5 million for final design of the stormwater system south of Hickory Street as well as construction of the outfall into the Poudre River. The budget offer also states that this project will only remain a priority if the URA contributes to the project financially. Medium Term Investment Strategies • Complete existing projects - Depending on funding levels, the west side stormwater and Mason Street project will likely extend into 2023-2024. Completing this project would create an asset that could spur additional private investment and tax increment generation. • Support outcomes of plan updates – Planning efforts underway today will likely finish in the next two years. Agencies conducting planning efforts that impact North College include Transfort and Parks Planning. The URA can collaborate on implementation items articulated in completed plans in the medium term. Long Term Investment Strategy • Invest in legacy projects – At the end of the plan area’s tax increment generation, the Board can consider infrastructure projects that will leave a lasting legacy on the North College community. These projects could also provide repayment opportunities that will give the URA a revenue source that lasts beyond the tax increment generation period of the plan area. Financial Overview The North College plan area is generating surplus tax increment revenue every year. After servicing debt and contributing to overhead costs, the North College plan area will generate around $650,000 in net proceeds annually from 2020 – 2022. In 2022 and 2023, the plan area will generate around $750,000 annually as the URA makes its final payments for Aspen Heights. From 2024 until 2030, the plan area will generate over $1 million annually leaving an anticipated final cash balance of $13.7 million in 2030. Below is an estimate of money the URA will have available by phase of the investment plan. Please note the money available from 2021-2022 includes current cash reserves generated in 2019 and 2020. Timeframe Cash Available Short Term – 2021-2022 $2,388,489 Medium Term – 2023-2024 $1,697,922 Long Term – 2025-2030 $9,713,546 Total $13,799,957 NEXT STEPS The URA Board will consider the strategies for the investment plan at their regular meeting in October. Staff will take the feedback from the Finance Committee and Board and incorporate it into a final investment plan. The final investment plan will contain recommended financial allocations and metrics/indicators. The URA Board will consider the final investment plan at its regular meeting in November. ATTACHMENTS (numbered Attachment 1, 2, 3,…) 1. North College Revenue Forecast North College Urban Renewal Area Base year 2005 TIF Rev through 2031 Financial Forecast Revenue is recd year following assessment 2018 TIF 2019 TIF 2020 TIF 2021 TIF 2022 TIF 2023 TIF 2024 TIF 2025 TIF 2026 TIF 2027 TIF 2028 TIF 2029 TIF TIF revenue year 15 16 17 18 19 20 21 22 23 24 25 26 ACT Budget Budget Budget Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Cash Inflows 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Total Property Tax Increment (cash basis)1,989,781 2,420,433 2,443,842 2,492,719 2,492,719 2,542,573 2,542,573 2,593,425 2,593,425 2,645,293 2,645,293 2,698,199 41,271,023 TOTAL Property Tax Increment 1,989,781 2,420,433 2,443,842 2,492,719 2,492,719 2,542,573 2,542,573 2,593,425 2,593,425 2,645,293 2,645,293 2,698,199 41,271,023 Other Revenue Interest 62,701 22,662 21,079 18,444 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 565,789 Other 233,833 Total Other Revenue 62,701 22,662 21,079 18,444 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 799,622 Principal and Interest from Loans Interest from loans - - - - - - - - - - - - 560,495 Loan 3 - RMI2 principal repayments - - - - - - - - - - - - 2,503,918 Total Principal and Interest Revenue - - - - - - - - - - - - 3,064,413 Total Cash Inflows 2,052,482 2,443,095 2,464,921 2,511,163 2,512,719 2,562,573 2,562,573 2,613,425 2,613,425 2,665,293 2,665,293 2,718,199 73,632,925 15 16 17 18 19 20 21 22 23 24 25 26 Cumulative Cash Outflows 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Total Operating Personnel (224,802) (307,429) (313,578) (319,849) (326,246) (332,771) (339,426) (346,215) (353,139) (360,202) (367,406) (5,142,492) Goods & Services (178,330) (66,768) (80,826) (78,724) (82,660) (86,793) (91,133) (95,690) (100,474) (105,498) (110,773) (1,637,728) Reimbursement from Other URAs 310,017 64,723 100,897 102,915 103,764 104,630 106,722 107,624 109,776 110,713 112,928 1,489,301 County Fee (39,796) (48,409) (48,877) (49,854) (49,854) (50,851) (50,851) (51,868) (51,868) (52,906) (52,906) (53,964) (747,801) Insurance (37,500) (25,000) (25,000) (25,000) (25,000) (25,000) (25,000) (25,000) (25,000) (25,000) (25,000) (287,500) Debt Service Banking Fee (2,750) (2,500) (2,750) (2,750) (2,750) (2,750) (2,750) (2,750) (2,750) (2,750) (2,750) (245,643) Pedestrian Bridge (125,000) Total Operating (173,161) (385,383) (370,133) (373,263) (382,747) (393,536) (402,438) (413,899) (423,456) (435,642) (445,907) (53,964) (6,696,863) Developer Project Costs (funds released to projects) Project 9 - Aspen Heights Principal - (143,033) (147,682) (144,471) - - - - - - - - (435,186) Project 9 - Aspen Heights Interest - (14,144) (9,495) (4,695) - - - - - - - - (28,334) Project 10- Feeders Supply - (25,175) (25,175) (25,679) (25,679) (26,192) (26,192) (26,716) (26,716) (27,250) (27,250) (27,795) (289,819) Project 11-Hickory Commons - - - - - - - - - - - Project 12- Lyric (first $43,650 payable to URA for ROW)- - - - - - - - - - - Project 13- Whitewater Park (303,000) Project 14- Stormwater (300,000) (300,000) Total Developer Project Costs (300,000) (182,352) (182,352) (174,844) (25,679) (26,192) (26,192) (26,716) (26,716) (27,250) (27,250) (27,795) (12,364,323) Debt 3 Principal (RMI2)(266,692) (273,360) (288,567) (295,781) (311,884) (319,681) (4,512,216) Debt 3 Principal (RMI2)(764,810) Debt 3 Interest (44,928) (37,905) (31,071) (23,856) (16,462) (8,665) (673) (1,229,816) Sub-Total General Fund (311,620) (311,265) (319,638) (319,637) (328,346) (328,346) (673) - - - - - (15,738,926) 2013 Bonds - Debt Service 2013 Bond Principal (615,000) (635,000) (665,000) (690,000) (715,000) (745,000) (775,000) (805,000) (840,000) (870,000) (910,000) - (11,085,000) 2013 Bond Interest (333,963) (309,363) (283,963) (257,363) (229,763) (201,163) (171,363) (140,363) (108,163) (74,563) (38,675) - (4,195,860) Total Bond Debt Service (948,963) (944,363) (948,963) (947,363) (944,763) (946,163) (946,363) (945,363) (948,163) (944,563) (948,675) - (15,280,860) Total Cash Outflows (1,733,744) (1,823,362) (1,821,086) (1,815,107) (1,681,534) (1,694,236) (1,375,666) (1,385,978) (1,398,334) (1,407,455) (1,421,832) (81,759) (59,832,968) Non-paid commitments (Aspen Heights)- - Net Change in Cash 318,738 619,733 643,835 696,056 831,185 868,337 1,186,907 1,227,447 1,215,090 1,257,838 1,243,461 2,636,440 13,799,957 Ending Cash & Investments 1,373,628 1,993,360 2,637,196 3,333,252 4,164,437 5,032,773 6,219,681 7,447,127 8,662,218 9,920,056 11,163,517 13,799,957 Restricted Cash (944,363) (948,963) (947,363) (944,763) (946,163) (946,363) (945,363) (948,163) (944,563) (948,675) Net Available Cash 429,265 1,044,398 1,689,833 2,388,489 3,218,274 4,086,411 5,274,318 6,498,965 7,717,655 8,971,381 11,163,517 13,799,957 Oustanding Debt 9,166,186 8,257,826 7,304,259 6,318,478 5,291,594 4,200,000 3,425,000 2,620,000 1,780,000 910,000 Page 1 Printed 9/30/2020 October 8, 2020 North College Community Investment Plan Community Engagement Process 2 Introduction to URA & Community Informed Planning Historical Context of Plan Area Asset Mapping Intro to Urban Design & Project Ideation Refine Project Concepts Participatory Budgeting Activity Community Asset Mapping Identify Improvement Projects Participatory Budgeting Activity The Family Center / La Familia led Workshops Institute for the Built Environment led Workshops Proposed Structure of Community Investment Plan •Overview of engagement report •Define four community priorities •Alignment with plans •Identify investments by timeframe •Short, medium, long term •Recommend allocation of money 3 Outcomes in Community Investment Plan 4 COMPLETE & VIBRANT NEIGHBORHOOD COMMUNITY HUB INFRASTRUCTURE IMPROVEMENTS Complete, Vibrant Neighborhood Short Term Strategies •Cultivate partnerships •Small business support Medium Term Strategies •Pilot community hub programs Long Term Strategies •Acquire property for mixed-use development •Repayments fund community objectives 5 Community Hub Short Term Strategy •Begin community-based design process Medium Term Strategy •Forge development partnerships Long Term Strategy •Develop community hub 6 Infrastructure Improvements Short Term Strategy •Continue supporting existing projects Medium Term Strategies •Complete existing projects •Support outcomes of plan updates Long Term Strategy •Invest in legacy projects 7 Financial Snapshot Timeframe Cash Available Short Term –2021-2022 $2,388,489 Medium Term –2023-2024 $1,697,922 Long Term –2025-2030 $9,713,546 Total $13,799,957 8 Community Investment Plan Process and Timeline 9 October 2020 August 2020 September 2020 Discussed Engagement Report Review initial Community Investment Plan framework Discuss Community Investment Plan strategies November 2020 Consider adoption of Community Investment Plan January 2020 Consider adoption of budget appropriation for short term outcomes Questions for the Finance Committee Do you agree with the strategies presented? What other strategies would help the URA achieve the objectives outlined in the IBE report? What additional information would be helpful for presenting this to the Urban Renewal Authority Board? 10 URA FINANCE COMMITTEE AGENDA ITEM SUMMARY Staff: Clay Frickey, Redevelopment Program Manager Date: September 28, 2020 SUBJECT FOR DISCUSSION 2021 Urban Renewal Authority Budget EXECUTIVE SUMMARY Staff submitted two budget offers for the Urban Renewal Authority (URA) as part of the City’s Budgeting for Outcomes (BFO) process in early July. One offer covers the costs of performing core functions of the URA. The second offer is for the URA’s debt service payments. Combined, the total appropriation for the 2021 URA budget would be $6,684,310. After these expenses, both the North College and Prospect South plan areas would generate excess revenues. Staff forecasts just under $2 million in available cash in the North College plan area and $1.1 million in available cash in the Prospect South plan area by the end of 2021. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED What additional information would be helpful prior to adoption of the budget? BACKGROUND/DISCUSSION The Urban Renewal Authority (URA) participates in the City’s biennial Budgeting For Outcomes (BFO) process when establishing its budget. The 2021-2022 BFO cycle is the first time the URA Board has participated in BFO since expanding to 11 members. Considering this, URA staff collaborated with Budget staff from the City on a budget process that allowed the four non-City Council members of the URA Board to have equal say in the URA’s budget. This meant that the URA would adopt its budget in October 2020, one month ahead of the City adopting its budget. The URA’s adopted budget would then fold into the final budget adopted by the City in November 2020. Due to COVID-19, the City truncated the BFO process. Instead of adopting a budget for 2021 and 2022, the City moved forward with adopting a budget for 2021 only. COVID-19 struck at the beginning of the BFO process, delaying the beginning of the budgeting process from April to June. As such, URA staff submitted a preliminary budget offer as part of the BFO process in June. Since submitting this offer, staff have checked with the URA Board monthly to confirm the direction and contents of the URA’s budget offer. No Board member has requested a change to the URA budget as submitted in June. Similarly, the City has not requested any changes to the URA’s budget offer. The City Manager’s Recommended Budget contains the same budget offer as staff submitted in June for the URA’s budget. No comments came up during the City Council work session discussing the portion of the budget in which the URA’s budget offer is contained. Overview of Budget Offers The budget offer consists of two elements: operational costs and debt service. Both elements are ongoing budget offers, meaning they are essential to running the day-to-day operations of the URA. Operational costs cover the costs of staffing, insurance, and retaining legal counsel, amongst other costs. The debt service budget offer covers payments of all outstanding debt for all plan areas. The table below summarize the amount of money staff seeks for appropriation to fund these budget offers: Offer Name 2021 Budget Request Offer 66.1 – URA Core Offer $736,704 Offer 66.2 – URA Debt Service $5,947,606 Total 2021 Budget $6,684,310 Attachment 1 contains an itemized list of expenses for each budget offer. The 2021 URA budget contains small changes compared to previous version of the URA budget. Changes in the 2021 URA budget compared to the 2020 budget include: • Costs of providing service to expanded board incorporated into URA Core Offer • All non-debt service costs placed into URA Operations budget offer • Larimer County Fee included in budget as an expense In the 2019-2020 budget, staff put forward a budget offer to provide service to the expanded board. This was considered an enhancement offer as part of the previous BFO process since it was a new practice for the URA. Since the URA Board will continue to have 11 members with non-City Council members, staff decided to roll the costs of providing service to the expanded board into the URA’s core offer. Staff also placed all non-debt service expenses into the core offer. This makes both offers clearer as to what they fund. Similarly, the Larimer County Fee was not a part of previous budget offers. This is a fee Larimer County assesses for managing the collections and remittance process for incremental property tax revenues. Staff netted out the Larimer County Fee rather than include it in the URA’s budget offer in previous BFO cycles. Staff has included the Larimer County Fee in the 2021 budget for increased transparency and clarity. North College Prospect South Foothills Mall Cash Inflows $2,464,921 $754,202 $4,452,580 Cash Outflows $1,821,086 $437,891 $4,447,766 Net Change in Cash $643,835 $316,311 $4,814 Restricted Cash $947,363 $368,544 - Net Available Cash $1,689,831 $908,288 - Attachment 2 provides a detailed revenue forecast for each plan area. Both the North College and Prospect South plan areas will generate excess revenues with the current proposed budget. By the end of 2021, North College will have nearly $1.7 million in cash available while Prospect South will have just over $900,000 in cash available. The Foothills Mall plan area passes TIF revenues to the Foothills Metro District, leaving the URA with no excess revenues to invest in other priorities. Staff will continue to monitor the impacts of COVID-19 on URA revenues. Collections of TIF revenue are on track for 2020. The County Treasurer has collected 93% of expected property taxes for 2019 taxes payable in 2020 as of June. With the County Assessor re-assessing property values in 2021 and the URA collecting property taxes a year in arrears, staff expect stable revenues through 2022. ATTACHMENTS 1. URA budget offers 2. 2021 revenue forecasts 3. TIF revenue summary City of Fort Collins 2021 - 2022 Offer Narratives Economic Health Offer 66.1: Urban Renewal Authority Offer Type: Ongoing 2022: $763,439 and 2.00 FTE, 0.00 Hourly FTE 2021: $760,887 and 2.00 FTE, 0.00 Hourly FTE Offer Summary This offer funds the administration and operation of the Urban Renewal Authority (URA). The URA’s mission is to leverage private capital investment & stimulate sustainable development & public improvement projects in areas of the community where reinvestment and redevelopment is significantly impaired. The URA currently has 4 active tax increment financing (TIF) districts. The URA program makes important contributions to the City’s vibrancy with an emphasis on triple-bottom-line benefits and placemaking. URA’s revitalization objectives include: •Transform blighted areas into vibrant neighborhoods •Catalyze projects & accelerate investments that would not otherwise happen, thereby creating improvements with lasting value •Encourage development projects that enhance the local character, culture, economy, & quality of life •Improve public infrastructure (streets, storm drainage, sewer, utilities, etc.) in areas where deficiencies exist •Incentivize high efficiency buildings & development projects in support of the City’s Climate Acton Plan •Retain, expand or attract businesses for the purpose of improving the City’s economic base as demonstrated by projects that retain/create jobs, increase the manufacturing base, etc. •Create destination locations, including mixed-use projects, that will capture additional revenue to the area •Support a spectrum of housing affordability options •Protect natural habitats and features •Remove impediments to desired development, e.g., lack of infrastructure, environmental contamination, presence of floodplain, or unsuitable soils •Encourage development that is consistent with City Plan, subarea plans, & approved Urban Renewal Plans •Create, accelerate & enhance projects that meet broader community objectives including those of our taxing entities The URA is not dependent on the General Fund. URA funding comes from incremental property & Data As Of: 7/6/20 at 3:57:2 Page 1 of 82.2.03 Offer Detail by Outcome - 66.1: Urban Renewal Authority Economic Health Offer 66.1: Urban Renewal Authority Offer Type: Ongoing sales tax revenues resulting from new activity enabled and catalyzed by URA investments This Offer supports the following Strategic Objectives (the primary objective is marked with a ü): ECON 3.4 - Foster infill and redevelopment opportunities consistent with City Plan policies.ü TM 6.5 - Maintain existing and aging transportation infrastructure and address missing facilities to meet community needs and expectations - ENV 4.1 - Intensify efforts to improve resilience and to meet 2030 climate, energy and 100% renewable electricity goals - Additional Information Existing Areas: (1) North College - centered on College Avenue from Vine Drive north to the City boundary and east/west to encompass the commercial development; (2) Prospect South - centered on College Avenue from Prospect Road south to just north of Whole Foods and east/west to encompass the commercial development; (3) Foothills - Encompasses the mall property and some public right-of-way - Existing Areas, continued: (4) College and Drake – contains Spradley Barr Mazda and former Kmart sites along with the intersections of College and Drake, Drake and railroad tracks, and Drake and Redwing. - Links to Further Details: - Not applicable Linkage to Strategic Objectives (the primary objective is marked with a ü) ECON 3.4 - Foster infill and redevelopment opportunities consistent with City Plan policies.: The Urban Renewal Authority is a partner in helping achieve the goals for infill and redevelopment outlined in City Plan. The core mission of the URA is to foster sustainable infill and redevelopment outcomes for the betterment of the community within targeted redevelopment areas where development constraints are significantly impeding these outcomes. ü TM 6.5 - Maintain existing and aging transportation infrastructure and address missing facilities to meet community needs and expectations: Maintain existing and aging transportation infrastructure and address missing facilities to meet community needs and expectations. One of the major impediments to infill development in the community is aging transportation infrastructure. Tax increment financing is an important tool that can make intersection upgrades feasible upon redevelopment. - Data As Of: 7/6/20 at 3:57:2 Page 2 of 82.2.03 Offer Detail by Outcome - 66.1: Urban Renewal Authority Economic Health Offer 66.1: Urban Renewal Authority Offer Type: Ongoing ENV 4.1 - Intensify efforts to improve resilience and to meet 2030 climate, energy and 100% renewable electricity goals: This offer supports the City’s climate action goals by having established policy and procedures incentivizing projects that achieve green building outcomes. Buildings are approximately 60% of emissions in Fort Collins, and this offer provides more efficient and comfortable buildings for those projects that leverage the URA. - Improvements & Efficiencies The URA refinanced a loan with the City in December 2019. This refinance freed up $5 million of General Fund money for other budget priorities while lowering debt service payments for the URA. - The URA has worked with the Stormwater and Engineering Departments to identify a unified approach to managing stormwater detention and water quality on the west side of College Avenue in the North College Plan Area with an outfall into the Poudre River. These stormwater facilities will be integrated with an ultimate alignment and design for Mason Street from Willox to Alpine. - Performance Metrics -ECON 60. Survey - Percent of businesses rating a positive performance of economic health initiatives https://publish.clearpointstrategy.com/594/Measures/scorecardId=6280&object=measure&objectId=55807 8.html Performance Measure Reason: TBD Personnel Changes N/A- Differences from Prior Budget Cycles Rolls in expenses from an approved enhancement in 2019/20 which expanded the URA board to 11 members- adding part time staff for logistics, a MinuteTraq license, and FCTV support. Also modified to include Larimer County Fee as an expense (previously netted out) to promote transparency and clearer accounting of the URA’s costs. - Explanation of Any Adjustments to Personnel Costs using object 519999 Not applicable- Summary of Changes Requested by BFO Teams or the Budget Lead Team - Not applicable Offer Profile Offer Owner: WBricher Lead Department: Urban Renewal Authority Data As Of: 7/6/20 at 3:57:2 Page 3 of 82.2.03 Offer Detail by Outcome - 66.1: Urban Renewal Authority Economic Health 2021 Projected Budget 2022 Projected Budget 66.1: Urban Renewal Authority 2021 to 2022 Change Ongoing Programs and Services Full Time Equivalent (FTE) Staffing 2.00 2.00 - % Hourly (FTE) - - - % Expenses 237,766 232,587 2.2%511000 - Salaries & Wages 58,178 55,596 4.6%512000 - Benefits (4,723)(4,604) 2.6%519000 - Other Personnel Costs 291,221 283,579 510000 - Personnel Services 2.7% 249,007 247,339 0.7%521000 - Professional & Technical - - - %529000 - Other Prof & Tech Services 249,007 247,339 520000 - Purchased Prof & Tech Services 0.7% 186,606 194,114 -3.9%535000 - Construction Services 186,606 194,114 530000 - Purchased Property Services -3.9% 25,000 25,000 - %541000 - Insurance 1,280 1,240 3.2%542000 - Communication Services 450 430 4.7%543000 - Internal Admin Services 1,405 1,365 2.9%544000 - Employee Travel 2,710 2,625 3.2%549000 - Other Purchased Services 30,845 30,660 540000 - Other Purchased Services 0.6% 2,050 1,690 21.3%555000 - Office & Related Supplies 3,710 3,505 5.8%559000 - Other Supplies 5,760 5,195 550000 - Supplies 10.9% 763,439 760,887 Total Expenses 0.3% Funding Sources 800-URA N. College District: Ongoing Revenue Ongoing Restricted 554,235 552,889 -0.2% 801-URA Prospect South TIF Dist: Ongoing Revenue Ongoing Restricted 68,347 69,479 1.7% 803-URA Mall Fund: Ongoing Revenue Ongoing Restricted 138,305 141,071 2.0% 763,439 760,887 Funding Source Total 0.3% Data As Of: 7/6/20 at 3:57:2 Page 4 of 82.2.03 Offer Detail by Outcome - 66.1: Urban Renewal Authority Economic Health Offer 66.2: URA Debt Service Offer Type: Ongoing 2022: $6,031,195 and 0.00 FTE, 0.00 Hourly FTE 2021: $5,947,606 and 0.00 FTE, 0.00 Hourly FTE Offer Summary This offer funds the payment of Urban Renewal Authority (URA) debt and obligation payments across three tax increment financing (TIF) districts. The College and Drake URA does not have obligation payments since it was established in 2020. These debts and obligations include bond payments (North College and Foothills Mall), Redevelopment/Project Agreements, and City loan agreements. The URA uses tax increment funding for all debt and obligation payments; the URA is not dependent on the General Fund. North College TIF Debt/Obligation Payments: Total Debt 2021 Principal $953,567 2022 Principal $985,781 2021 Interest $315,034 2022 Interest $281,219 Market Bonds 2021 Principal $665,000 2022 Principal $690,000 2021 Interest $283,963 2022 Interest $257,363 RMI2 Loan (from General Fund) 2021 Principal $288,567 2022 Principal $295,781 2021 Interest $31,071 2022 Interest $23,856 Prospect South TIF Debt/Obligation Payments: 2021 Principal $220,000 2022 Principal $230,000 2021 Interest $149,544 2022 Interest $138,544 Foothills TIF Debt/Obligation Payments: Total 2021 $4,309,461 Total 2022 $4,395,651 2021 Property Tax Increment Payments $3,813,265 2022 Property Tax Increment Payments $3,889,530 2021 Sales Tax Increment $ 496,196 2022 Sales Tax Increment $506,120 Note: North College Repayment derived from fixed URA 1.5% administration charge on property tax increment. Data As Of: 7/6/20 at 3:57:2 Page 5 of 82.2.03 Offer Detail by Outcome - 66.2: URA Debt Service Economic Health Offer 66.2: URA Debt Service Offer Type: Ongoing This Offer supports the following Strategic Objectives (the primary objective is marked with a ü): ECON 3.4 - Foster infill and redevelopment opportunities consistent with City Plan policies.ü TM 6.5 - Maintain existing and aging transportation infrastructure and address missing facilities to meet community needs and expectations - ENV 4.1 - Intensify efforts to improve resilience and to meet 2030 climate, energy and 100% renewable electricity goals - Additional Information Not applicable- Links to Further Details: - Not applicable Linkage to Strategic Objectives (the primary objective is marked with a ü) ECON 3.4 - Foster infill and redevelopment opportunities consistent with City Plan policies.: The Urban Renewal Authority is a partner in helping achieve the goals for infill and redevelopment outlined in City Plan. The core mission of the URA is to foster sustainable infill and redevelopment outcomes for the betterment of the community within targeted redevelopment areas where development constraints are significantly impeding these outcomes. ü TM 6.5 - Maintain existing and aging transportation infrastructure and address missing facilities to meet community needs and expectations: One of the major impediments to infill development in the community is aging transportation infrastructure. Tax increment financing is an important tool that can make intersection upgrades feasible upon redevelopment. - ENV 4.1 - Intensify efforts to improve resilience and to meet 2030 climate, energy and 100% renewable electricity goals: This offer supports the City’s climate action goals by having established policy and procedures incentivizing projects that achieve green building outcomes. Buildings are approximately 60% of emissions in Fort Collins, and this offer provides more efficient and comfortable buildings for those projects that leverage the URA. - Improvements & Efficiencies TBD- Performance Metrics -ECON 41. Trained Observer Program - Percentage of Downtown Area And Downtown City Facility Grounds Ratings With No Problems https://publish.clearpointstrategy.com/594/Measures/scorecardId=6286&object=measure&objectId=91331. html Data As Of: 7/6/20 at 3:57:2 Page 6 of 82.2.03 Offer Detail by Outcome - 66.2: URA Debt Service Economic Health Offer 66.2: URA Debt Service Offer Type: Ongoing Performance Measure Reason: TBD Personnel Changes N/A- Differences from Prior Budget Cycles Not applicable- Explanation of Any Adjustments to Personnel Costs using object 519999 Not applicable- Summary of Changes Requested by BFO Teams or the Budget Lead Team - Not applicable Offer Profile Offer Owner: WBricher Lead Department: Urban Renewal Authority Data As Of: 7/6/20 at 3:57:2 Page 7 of 82.2.03 Offer Detail by Outcome - 66.2: URA Debt Service Economic Health 2021 Projected Budget 2022 Projected Budget 66.2: URA Debt Service 2021 to 2022 Change Ongoing Programs and Services Full Time Equivalent (FTE) Staffing - - - % Hourly (FTE) - - - % Expenses 4,395,651 4,309,461 2.0%535000 - Construction Services 4,395,651 4,309,461 530000 - Purchased Property Services 2.0% 1,635,544 1,638,145 -0.2%581000 - Debt Service 1,635,544 1,638,145 580000 - Debt & Other Uses -0.2% 6,031,195 5,947,606 Total Expenses 1.4% Funding Sources 800-URA N. College District: Ongoing Revenue Ongoing Restricted 1,268,601 1,267,000 -0.1% 801-URA Prospect South TIF Dist: Ongoing Revenue Ongoing Restricted 369,544 368,544 -0.3% 803-URA Mall Fund: Ongoing Revenue Ongoing Restricted 4,309,461 4,395,651 2.0% 6,031,195 5,947,606 Funding Source Total 1.4% Data As Of: 7/6/20 at 3:57:2 Page 8 of 82.2.03 Offer Detail by Outcome - 66.2: URA Debt Service 2019 Actual 2020 Budget 2021 Budget 2022 Forecast 2020-2021 % Change 2021-2022 % Change Revenue: Property Tax Increment Collections $1,989,781 $2,420,433 $2,443,842 $2,492,719 1%2% Interest on Investments 62,701 22,662 21,079 18,444 -7%-13% Total Revenue for the URA $2,052,482 $2,443,095 $2,464,921 $2,511,163 1%2% Expenses: Operations General Operations/Admin $133,365 $336,974 $321,257 $324,595 -5%1% Reimbursement from other URAs Larimer County Fee 39,796 48,409 48,877 49,854 1%2% Developer Payment 0 182,352 182,352 174,844 Operational Costs $173,161 $567,735 $552,486 $549,293 -3%-1% Transfers (to Stormwater)300,000 Debt Service - Bonds Principal $615,000 $635,000 $665,000 $690,000 5%4% Interest 333,963 309,363 283,963 257,363 -8%-9% Debt Service Costs $948,963 $944,363 $948,963 $947,363 0%0% Debt Service - RMI2 Principal $266,692 $273,360 $288,567 $295,781 6%2% Interest 44,929 37,905 31,071 23,856 -18%-23% Debt Service Costs $311,621 $311,265 $319,638 $319,637 3%0% Total Expense $1,733,744 $1,823,363 $1,821,086 $1,816,293 0%0% Net Change in Fund Balance $318,738 $619,733 $643,835 $694,870 4%8% Prior Year Fund Balance $1,054,889 $1,373,627 $1,993,359 $2,637,194 45%32% Current Year Projected Fund Balance $1,373,627 $1,993,359 $2,637,194 $3,332,064 Restricted Cash ($944,363)($948,963)($947,363)($944,763) Available Cash Balance $429,264 $1,044,397 $1,689,831 $2,387,301 Notes 2020 Property Tax based on Intial Larimer County Assessors Office 2019 TIF Warrant. 2021 Property Tax based on Final Larimer County Assessors Office 2019 TIF Warrant. 2022 Property Tax based on 2% increase on 2019 assessment (bi-annual assessment).  2020 and out include insurance costs of $25k. 2019 was prorated at $37.5k  Oustanding debt at the end of 2022 is: Market Bonds: $5.66M RMI2 GF Debt: $658,478 Developer Payments are currently under review. URBAN RENEWAL AUTHORITY NORTH COLLEGE DISTRICT - FUND 800 2021-2022 BUDGET In 2019 General Operations/Admin was trued-up for administrative expenses owed to the North College URA Fund through 2018. 2020 includes true-up for 2019 expenses. 2019 Actual 2020 Budget 2021 Budget 2022 Forecast 2020-2021 % Change 2021-2022 % Change Revenue: Property Tax Increment Collections $603,023 $726,802 $748,110 $763,072 3%2% Interest on Investments 22,542 10,200 6,092 5,331 -40%-12% Total Revenue for the URA $625,565 $737,002 $754,202 $768,403 2%2% Proceeds from Revenue Bonds 5,328,863 Total Revenue $5,954,428 $737,002 $754,202 $768,403 2%2% Expenses: Operations General Operations/Admin $226,139 $40,807 $41,623 $42,456 2%2% Larimer County Fee 12,060 14,962 14,962 15,261 0%2% Financial Consulting Services 173,567 Developer Payment 11,762 11,762 11,762 11,762 0%0% Operational Costs $423,528 $67,531 $68,347 $69,479 1%2% Debt Service - Bonds Principal $4,720,111 $220,000 $220,000 $230,000 0%5% Interest 450,046 149,395 149,544 138,544 0%-7% Debt Service Costs $5,170,157 $369,395 $369,544 $368,544 0%0% Total Expense $5,593,685 $436,926 $437,891 $438,023 0%0% Net Change in Fund Balance $360,743 $300,076 $316,311 $330,380 Prior Year Fund Balance $299,702 $660,445 $960,521 $1,276,832 Current Year Projected Fund Balance $660,445 $960,521 $1,276,832 $1,607,212 Restricted Cash $0 ($369,544)($368,544)($367,044) Available Cash Balance $660,445 $590,977 $908,288 $1,240,168 Notes 2020 Property Tax based on Intial Larimer County Assessors Office 2019 TIF Warrant. 2021 Property Tax based on Final Larimer County Assessors Office 2019 TIF Warrant. 2022 Property Tax based on 2% increase on 2019 assessment (bi-annual assessment).   Oustanding debt at the end of 2022 is: Market Bonds: $4.32M In 2019 General Operations/Admin was trued-up for administrative expenses owed to the North College URA Fund through 2018. 2020 includes true-up for 2019 expenses. Debt Service is from the refinancing schedule URBAN RENEWAL AUTHORITY PROSPECT SOUTH DISTRICT - FUND 801 2021-2022 BUDGET 2019 Actual 2020 Budget 2021 Budget 2022 Forecast 2020-2021 % Change 2021-2022 % Change Revenue: Property Tax Increment Collections $3,060,698 $3,688,601 $3,951,570 $4,030,602 7%2% Sales Tax Increment 476,928 572,313 496,196 506,120 -13%2% Interest on Investments 10,083 5,368 4,814 4,212 -10%-13% Total Revenue for the URA $3,547,709 $4,266,282 $4,452,580 $4,540,934 4%2% Expenses: Operations General Operations/Admin $83,878 $47,604 $59,274 $60,459 25%2% Larimer County Fee 61,614 73,772 79,031 80,612 7%2% Developer Payment 3,455,652 4,131,813 4,309,461 4,395,651 4%2% Total Operational Costs $3,601,144 $4,253,189 $4,447,766 $4,536,722 5%2% Total Expense $3,601,144 $4,253,189 $4,447,766 $4,536,722 5%2% Net Change in Fund Balance ($53,436)$13,093 $4,814 $4,212 Prior Year Fund Balance $55,129 $1,693 $14,787 $19,601 Current Year Projected Fund Balance $1,693 $14,787 $19,601 $23,813 Notes 2020 Property Tax based on Larimer County Assessors Office 2019 TIF Warrant. 2022 Property Tax based on 2% increase on 2019 assessment (bi-annual assessment).   The 2022 ending fund balance is the result of cumulative interest earnings on balances in the fund and payment of admin charges one year in arrears. URBAN RENEWAL AUTHORITY FOOTHILLS DISTRICT - FUND 803 2021-2022 BUDGET 2020-2022 Sales Tax Increment is 2% higher year over year based on 2019 actual and store closures. In 2019 General Operations/Admin was trued-up for administrative expenses owed to the North College URA Fund through 2018. 2020 includes true-up for 2019 expenses. North College URA Forecast 2020- 2030 (11 years)TOTAL Total TIF % of Total 006 Poudre R-1 School District $9,098,576 58.0%$14,888,447 $23,987,022 025 Larimer County $3,831,448 24.4%$6,269,587 $10,101,035 032 City of Fort Collins $1,685,290 10.7%$2,757,723 $4,443,013 054 Health District of N. Lar Co.$372,770 2.4%$609,981 $982,751 064 Lar Co. Pest Control $22,091 0.1%$36,149 $58,240 112 FC Regional Library District $517,425 3.3%$846,688 $1,364,113 117 N CO Water Conservation District $172,021 1.1%$281,486 $453,507 Total $15,699,620 $25,690,061 $41,389,681 Midtown Prospect South URA Forecast 2020- 2037 (18 years)TOTAL Total TIF % of Total 006 Poudre R-1 School District $1,869,237 58.2%$7,894,793 $9,764,030 028 Larimer County $776,349 24.2%$3,278,940 $4,055,289 032 City of Fort Collins $342,939 10.7%$1,448,415 $1,791,354 054 Health District of N. Lar Co.$75,855 2.4%$320,375 $396,230 064 Lar Co. Pest Control $4,596 0.1%$19,412 $24,008 112 FC Regional Library District $105,363 3.3%$445,005 $550,368 117 N CO Water Conservation District $35,004 1.1%$147,843 $182,847 Total $3,209,343 $13,554,783 $16,764,126 LTD (2013-2019) TIF Revenue LTD (2006-2019) October 8, 2020 2021 URA Budget Overview •Budgeting for Outcomes (BFO) process changed •One-year budget for 2021 •2020 budget reductions •Timeline changed due to COVID-19 2 BFO and URA Board Timelines Budget offers due City Manager’s Recommended Budget City Council Public Hearing City Council Public Hearing First Reading of Budget Ordinance Second Reading of Budget Ordinance 3 July 6 Sept. 1 Sept. 15 Oct. 6 Nov. 3 Nov. 17 Present 2021 Budget Amended 2021 Budget Update on City Manager’s Recommended Budget Adopt 2021 Budget July 23 Aug. 27 Sept. 24 Oct. 22 BFO Milestones URA Board Milestones URA Core Offer Expenses Budget Amount Personnel $283,579 Prof. & Tech. Services $247,339 Property Services $194,114 Other $30,660 Supplies $5,195 Total $760,887 Funding Source Budget Amount N. College $554,235 Prospect South $68,347 Foothills Mall $138,305 Total $760,887 4 Ongoing Programs and Services Funding Source URA Debt Service Offer Expenses Budget Amount Construction Services $4,309,461 Debt Service $1,638,145 Total $5,947,606 Funding Source Budget Amount N. College $1,268,601 Prospect South $369,544 Foothills Mall $4,309,461 Total $5,947,606 5 Ongoing Programs and Services Funding Source Changes from 2020 Budget •Costs of serving expanded Board •Enhancement offer in 2020 •Core offer all non-debt service costs •Larimer County Fee included as expense 6 2021 Revenue Forecasts North College Prospect South Foothills Mall Cash Inflows $2,464,921 $754,202 $4,453,242 Cash Outflows $1,821,086 $437,891 $4,447,766 Net Change in Cash $643,835 $316,311 $5,476 Restricted Cash $947,363 $368,544 - Net Available Cash $1,689,831 $908,288 - 7 URA 6-MONTH PLANNING CALENDAR October 2020 – April 2021 CALENDAR SUBJECT TO FREQUENT CHANGES Email URA Staff for up-to-date information: URABoardInfo@fcgov.com “The mission of the Urban Renewal Authority is to remedy blight, using Tax Increment Financing, to leverage private capital investment, and stimulate sustainable development and public improvement projects.” BOARD OF COMMISSIONERS: Wade Troxell, Chair Julie Pignataro Ross Cunniff, Vice Chair Andy Smith Christophe Febvre Kristin Stephens Emily Gorgol Ken Summers Susan Gutowsky Joe Wise Steve Johnson (Items are listed in no particular order) URA Board Meeting Selection Committee Planning & Zoning Board Plan Area Review Committee URA Finance Committee City Council Meeting Public Open House City Council Finance Committee Legal Contract Review Committee Created: 10/2/2020 4:00 PM URA Board Meeting Selection Committee Planning and Zoning Board Plan Area Review Committee URA Finance Committee City Council Meeting Public Open House City Council Finance Committee URA Legal Contract Review Committee Meeting Info Agenda Item The purpose of this item is to… October 8 Time: 3:00pm Location: TBD URA Finance Committee Agenda: Approval of the June 11, 2020 Finance Committee meeting minutes North College Community Investment Plan Discuss strategies related to North College Community Investment Plan 2021 URA Budget Discuss proposed 2021 URA budgetd October 22 Time: 5:00pm Location: TBD URA Board Meeting Agenda: Approval of the September 24, 2020 URA Board meeting minutes 2021 URA Budget Public hearing to consider adoption of 2021 URA Budget North College Community Investment Plan Discuss strategies related to North College Community Investment Plan November 12 Time: 8:30 AM Location: TBD URA Finance Committee Agenda: Approval of the October 8, 2020 Finance Committee meeting minutes North College Community Investment Plan Discussion finance options related to North College Community Investment Plan November 30 Time: 5:00 PM Location: TBD URA Board Meeting Agenda: Approval of the October 22, 2020 URA Board meeting minutes URA Board Meeting Selection Committee Planning and Zoning Board Plan Area Review Committee URA Finance Committee City Council Meeting Public Open House City Council Finance Committee URA Legal Contract Review Committee Meeting Info Agenda Item The purpose of this item is to… North College Community Investment Plan Consider resolution adopting North College Community Investment Plan December 10 Time: 3:00 PM Location: TBD URA Finance Committee Agenda: Approval of the November 12, 2020 Finance Committee meeting minutes December 17 Time: 5:00 PM Location: TBD URA Board Meeting Agenda: Approval of the November 30, 2020 URA Board meeting minutes Prospect South community engagement update Update on the progress of Prospect South community workshop series January 14, 2021 Time: 3:00 PM Location: TBD URA Finance Committee Agenda: Approval of the December 10, 2020 Finance Committee meeting minutes January 28, 2021 Time: 5:00 PM Location: TBD URA Board Meeting Agenda: Approval of the December 17, 2020 URA Board meeting minutes North College Community Investment Plan implementation Consider short term action items to fulfill North College Community Investment Plan February 11, 2021 Time: 3:00 PM Location: TBD URA Finance Committee Agenda: Approval of the January 14, 2021 Finance Committee meeting minutes URA Board Meeting Selection Committee Planning and Zoning Board Plan Area Review Committee URA Finance Committee City Council Meeting Public Open House City Council Finance Committee URA Legal Contract Review Committee Meeting Info Agenda Item The purpose of this item is to… February 25, 2021 Time: 5:00 PM Location: TBD URA Board Meeting Agenda: Approval of the January 28, 2021 URA Board meeting minutes Prospect South Engagement Report Discuss findings from Prospect South community engagement workshops March 11, 2021 Time: 3:00 PM Location: TBD URA Finance Committee Agenda: Approval of the February 11, 2021 Finance Committee meeting minutes March 25, 2021 Time: 5:00 PM Location: TBD URA Board Meeting Agenda: Approval of the February 25, 2021 URA Board meeting minutes Prospect South Community Investment Plan Consider resolution adopting Community Investment Plan for the Prospect South plan area April 8, 2021 Time: 3:00 PM Location: TBD URA Finance Committee Agenda: Approval of the March 11, 2021 Finance Committee meeting minutes April 22, 2021 Time: 5:00 PM Location: TBD URA Board Meeting Agenda: Approval of the March 25, 2021 URA Board meeting minutes URA Board Meeting Selection Committee Planning and Zoning Board Plan Area Review Committee URA Finance Committee City Council Meeting Public Open House City Council Finance Committee URA Legal Contract Review Committee UNSCHEDULED OR UPCOMING ITEMS Item Purpose of Item North College Prospect South College and Drake King Soopers Project Foothills Mall Misc. URA IGA and City URA insurance and Purchasing Power URA Purchasing Policies Mulberry Corridor Update URA Plan Areas and City Plan Update Board on project status and projected impacts to TIF revenue Update URA IGA with the City Direction on URA insurance and purchasing power Recommendation on URA purchasing policies Update on Mulberry Corridor Plan, future annexation, and alignment with URA strategic objectives Discussion of URA Plan Areas and their relation to City Plan