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HomeMy WebLinkAbout120 - 10/19/1993 - APPROVING AN INTERGOVERNMENTAL AGREEMENT WITH DOWNTOWN DEVELOPMENT AUTHORITY FOR IMPROVEMENTS TO LIN ORDINANCE NO. 120, 1993 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROVING AN INTERGOVERNMENTAL AGREEMENT BETWEEN THE CITY AND THE DOWNTOWN DEVELOPMENT AUTHORITY, TRANSFERRING FUNDS AND APPROPRIATING ADDITIONAL FUNDS FOR IMPROVEMENTS TO THE LINDEN HOTEL AND SALVATION ARMY BUILDING WHEREAS, certain downtown properties, known as the Linden Hotel and Salvation Army buildings, and more particularly described on Exhibit "A," attached hereto and incorporated herein by this reference, have received National Register Landmark designation and are considered cornerstones to the revitalization of the Old Town Historic District; and WHEREAS, both buildings have been vacant since 1984, during which time both have deteriorated to the point where their structural integrity has been significantly threatened; and WHEREAS, Resolution 91-46, which was passed by Council in 1991, and the Downtown Plan emphasize the importance of the redevelopment of the Linden Block as critical to the reintegration of the Poudre River environs into the fabric of the downtown and as a community focal point, and the continued revitalization of the Downtown area; and WHEREAS, Council believes the City's participation in the renovation of the Linden Block is in the best interests of the City and serves an important public purpose; and WHEREAS, a proposal has been made by the Veldman Morgan Company which calls for both City and Downtown Development Authority ("DDA") participation in the facade renovation and stabilization of the Linden Hotel and the Salvation Army buildings at a cost of $450,000; and WHEREAS, Article V, Section 7, of the Charter of the City of Fort Collins authorizes the City Council to provide by ordinance for the payment of any expense from prior year reserves at the time such reserves are available; and WHEREAS, three separate funding sources, for the $450,000 needed, have been identified as available for use on the Linden Block improvements; and WHEREAS, One Hundred Thousand Dollars ($100,000) is available in the Capital Projects Fund for Historic Preservation, the use of which funds will remain unchanged; and WHEREAS, Fifty Thousand Dollars ($50,000) is available in the Sales & Use Tax Fund - Use Tax Reserve; and WHEREAS, THE Three Hundred Thousand Dollars ($300,000) is available as an advance from Street Oversizing Fund Reserves, representing General Fund monies which have been contributed to the Fund; and WHEREAS, under the provisions of Section 31-25-800, C.R.S. , the DDA is authorized to receive grants, contributions and loans from the City and to utilize the same for the acquisition of property and the repair and reconstruction of such property. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the Mayor is hereby authorized to enter into an agreement between the City and the DDA, whereby the City will transfer to the DDA the sum of Four Hundred Fifty Thousand Dollars ($450,000) to be used for the stabilization and renovation of the facades of the Linden Hotel and Salvation Army buildings and the acquisition of an ownership interest in said facades, to be held by the DDA, upon the following terms and conditions: a. The City will advance Three Hundred Thousand Dollars ($300,000) from its Street Oversizing Fund Reserves to the DDA Fund, representing General Fund monies which have been contributed to the Street Oversizing Fund, which amount will be repaid by the DDA to the City, subject to the City Council 's annual appropriation of the funds necessary for such repayment, over a period of ten (10) years with an annual interest rate ranging from three and one-half percent (3.5%) to five and one-half percent (5.5%) ; b. In addition to the foregoing advance from the Street Oversizing Fund Reserves, the City will transfer to the DDA Fund the sum of One Hundred Thousand Dollars ($100,000) from the Capital Projects Fund for Historic Preservation and Fifty Thousand Dollars ($50,000) from the Sales and Use Tax Fund Reserves; and C. The DDA will utilize the total amount of funds transferred and advanced by the City under this agreement for the purpose of making facade improvements, structural improvements to support the facades, and roof improvements to the Linden Hotel and Salvation Army buildings (the "Improvements") , pursuant to an agreement between the DDA and the private developer upon the following terms and conditions: (1) The DDA will take passive ownership of the facades and an easement for a minimum of thirty (30) years to provide access to and support for the facades; (2) Facade improvements will require approval by the Landmark Preservation Commission; (3) The project architect will certify the actual cost of the Improvements after completion of the project, which cost will be recertified by a second architect selected or employed by the City, and the amount so independently certified will determine the actual amount to be paid to the developer by the DDA; (4) All funds transferred to the DDA will be paid to the developer by way of reimbursement, pursuant to the foregoing certification and subject to review and approval by the City's Financial Officer. (5) The foregoing reimbursement payments will be made in accordance with the following restrictions: (a) a maximum of Four Hundred Fifty Thousand Dollars $450,000) will be reimbursed to the developer for the Improvements; (b) of the maximum reimbursable amount, the One Hundred Thousand Dollars ($100,000) transferred from the Historic Preservation Project within the Capital Projects Fund may be used to pay the cost of any of the Improvements; and (c) the Three Hundred Fifty Thousand Dollars ($350,000) transferred from Sales and Use Tax Reserves and Street Oversizing Fund Reserves shall be used only for facade and related structural support improvements. (6) Such reimbursement payments shall be made only after (a) a certificate of occupancy has been issued for the Linden Hotel and the facade renovation of the Salvation Army building has been completed, and (b) an agreement has been executed requiring the owners of the respective buildings upon project completion of each building to certify to the Larimer County Assessor a value for the project sufficient to generate a minimum of $28,000 in property taxes for the Linden Hotel and $12,000 for the Salvation Army building for a period necessary to generate a total amount of property taxes from both buildings equal to $450,000. (7) The owners of the respective buildings will guarantee, through a payment in lieu of taxes, the minimum level of property taxes described in (6) above. (8) No alterations to facades will be permitted without DDA and LPC approval ; (9) The building facades will be maintained by the owner(s) of the respective buildings; (10) The owner must provide adequate insurance and indemnification; and (11) The City must be designated as the successor entity to the DDA. Section 2. That the amount of One Hundred Thousand Dollars ($100,000) is authorized for transfer from the Historic Preservation capital project in the Capital Projects Fund to the Downtown Development Authority Fund and appropriated therein for the Linden Block renovation. Section 3. That there is hereby appropriated from prior year reserves in the Sales & Use Tax Fund Fifty Thousand Dollars ($50,000) for transfer to the Downtown Development Authority Fund and appropriated therein for the Linden Block renovation. Section 4. That Three Hundred Thousand Dollars ($300,000) be advanced from Street Oversizing Fund reserves to the Downtown Development Authority Fund and appropriated therein for expenditure by the Downtown Development Authority for the Linden Block renovation. Introduced, considered favorably on first reading, and ordered published this 5th day of October, A.D. 1993, and to be presented for final passage on the 19th day of October, A.D. 1993. ATTEST: Mayor City Clerk CJ Passed and adopted on final reading this 19th day f October, A.D. 1993. Mayor ATTEST: rkCity Clem EXHIBIT A Linden Hotel Legal Description The land referred to in this commitment is described as follows: A portion of Lots 2 and 4, Block 13 in the CITY OF FORT COLLINS, COLORADO, to wit: Beginning at the Southeast corner of Lot 2 (being the most Southerly corner) in said Block 13, thence Northeasterly on line of Linden Street, 75 feet, thence Northwesterly parallel to Walnut Street, 100 feet; thence Southwesterly parallel to Linden Street 75 feet, thence Southeasterly on line of Walnut Street 100 feet to Point of Beginning, COUNTY OF LARIMER, STATE OF COLORADO. Salvation Army Building Legal Description The land referred to in this Commitment is described as follows: A portion of Lots 2 and 4, Block 13, in the City of Fort Collins, Colorado, described as follows: BEGINNING at a point on Linden Street, 75 feet Northeast from the most Southerly corner of said Lot 2, thence Northeasterly along line of Linden Street 115 feet, thence Northwesterly parallel with Walnut Street 100 feet, thence Southwesterly parallel with Linden Street 115 feet, thence Southeasterly parallel with Walnut Street 100 feet to the POINT OF BEGINNING, EXCEPT that portion conveyed by Deed recorded February 28, 1986 at Reception No. 86010395, COUNTY OF LARIMER, STATE OF COLORADO.