The URL can be used to link to this page

Home My WebLink About093 - 09/02/2008 - AUTHORIZING AN AMENDMENT TO THE INTERGOVERNMENTAL AGREEMENT BETWEEN THE CITY, LARIMER COUNTY AND THE ORDINANCE NO. 093, 2008 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING AN AMENDMENT TO THE INTERGOVERNMENTAL AGREEMENT BETWEEN THE CITY, LARIMER COUNTY AND THE FORT COLLINS DOWNTOWN DEVELOPMENT AUTHORITY PERTAINING TO THE CIVIC CENTER PARKING STRUCTURE WHEREAS,on May 14,2008,the Colorado Legislature passed Senate Bill 08-170 amending Title 31,Article 25, Section 807 of the Colorado statutes by allowing municipalities to extend the period of time that a downtown development authority may utilize tax increment financing; and WHEREAS, on July 10, 2008, the Board of the Fort Collins Downtown Development Authority ("DDA") adopted a resolution recommending that City Council approve an ordinance authorizing such an extension; and WHEREAS, on August 19, 2008, the City Council adopted an ordinance to that effect on First Reading; and WHEREAS, the City Council had previously authorized an intergovernmental agreement related to the Civic Center Parking Structure (the "Parking Structure") by and among the City, Latimer County (the "County") and the DDA, which was signed and became effective on July 3, 1997 (the "IGA"); and WHEREAS, pursuant to the IGA, the County paid the City $3,070,000 for its share of the cost of developing and constructing the Parking Structure, as well as half of the annual debt service assigned to the DDA from 2007 until the related financing would be completely paid off in 2018 ($1,274,000); and WHEREAS, in view of the passage of Senate Bill 08-170, and the fact that the DDA will be collecting tax increment revenue for an additional twenty years, the financial arrangements in the IGA regarding payment of the debt service for the Parking Structure should be modified so as to reflect the parties' intent that the cost of the Parking Structure be shared equally by the City, the County and the DDA; and WHEREAS, toward that end, City staff is requesting that the City Council authorize the execution of an amendment to the IGA in substantially the form shown on Exhibit "A", attached hereto and incorporated herein by this reference (the "Amended IGA"); and WHEREAS,the Amended IGA would require the DDA to continue its one-third share of the debt service payment for the remaining Civic Center Parking Structure debt service term; and WHEREAS the Amended IGA would also require the City to make annual payments to the County to reimburse the County for that portion of its lump sum payment representing the unanticipated continued participation of the DDA in making debt service payments; and WHEREAS, the City Council believes that approval of the Amended IGA are in the best interests of the City. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that the Amended IGA, in substantially the form shown on the attached Exhibit"A" and incorporated herein by this reference, is hereby approved by the City Council and the Mayor is hereby authorized to execute the same on behalf of the City. Introduced and considered favorably on first reading and ordered published this 19th day of August, A.D. 2008, and to be presented for final passage th "dayofber, D. 2008. 1 Mayor ATTEST: LA City Clerk Passed and adopted on final reading this 2nd day o ptember, A.D. 2008. Mayor ATTEST: City Clerk I EXHIBIT "A" FIRST AMENDMENT TO THE INTERGOVERNMENTAL AGREEMENT BY AND AMONG THE CITY OF FORT COLLINS, THE COUNTY OF LARIMER, AND THE FORT COLLINS DOWNTOWN DEVELOPMENT AUTHORITY This First Amendment to the Intergovernmental Agreement ("First Amendment') by and among the City of Fort Collins, the County Of Larimer, and the Fort Collins Downtown Development Authority is made this day of 2008, by and between the CITY OF FORT COLLINS, COLORADO, a Colorado municipal corporation (the "City"), the COUNTY OF LARIMER, a political subdivision of the State of Colorado (the "County"), and The FORT COLLINS, COLORADO DOWNTOWN DEVELOPMENT AUTHORITY, a body corporate and politic (the "DDA"). WHEREAS, part of 2 of Article 1 of Title 29, C.R.S. authorizes governments to cooperate and contract with one another to provide any function, service or facility lawfully authorized to each, including the sharing of costs; and WHEREAS, the City, the County and the DDA have previously agreed to certain shared responsibilities to enable the construction, operation and maintenance of a parking structure to be located on Block 21 of the City according to the recorded plat thereof ("Block 21") in downtown Fort Collins to the east across Mason Street from the Justice Center, consistent with the City's Civic Center Master Plan (the "Civic Center Parking Structure" or the "Parking Structure"); and WHEREAS, on June 17, 1997, the Council adopted Resolution 97-91, authorizing an Intergovernmental Agreement by and among the City, the County and the DDA, which was signed and effective on July 3, 1997 (the "IGA"); and WHEREAS, on August 18, 1998, the Council adopted Resolution 98-119 terminating the IGA and authorizing a new one for the same purpose (the "Updated IGA"); and WHEREAS, during construction of the Parking Structure, the County paid its one-third share of the Parking Structure, plus an additional $1,274,000 (the "Prepayment"), in a lump sum, which took into account the anticipated termination after 2006 of the DDA's annual contribution toward the Parking Structure debt service, which would have necessitated that the County and the City equally share in the remaining DDA one-third share; and WHEREAS, in 2002 the Colorado Legislature passed legislation that extended the period of time that a downtown development authority may use tax increment financing by five additional five years, making the termination date for the DDA in 2011; and WHEREAS, on May 14, 2008, the Colorado Legislature passed Senate Bill 08-170 that amended Title 31, Article 25, Section 807 of the Colorado statutes by extending the period of time that a downtown development authority may use tax increment financing; and WHEREAS, on July 10, 2008, the DDA passed a resolution recommending that the City Council adopt an ordinance that would extend the period of time the DDA could use tax increment financing as allowed by the newly amended 31-25-807 C.R.S. and on August 19, 1 2008, the City adopted an ordinance extending the period of time the DDA could use such financing; and WHEREAS, since the DDA is now able to make its annual contribution toward the Parking Structure debt service as contemplated by the parties, the Updated IGA needs to be amended to carry out the original intention of the parties which was to share the cost to build and operate the Parking Structure; and WHEREAS, the City has agreed to make annual payments and the County has agreed to receive those annual payments as reimbursement of the Prepayment. NOW, THEREFORE, in consideration of the mutual promises contained herein, the parties agree that Section 3. FINANCING OF THE PARKING STRUCTURE of the Updated IGA is amended as follows: 3. FINANCING OF THE PARKING STRUCTURE 3.1. The DDA and the City shall continue to make annual payments toward the debt service for the Parking Structure through 2018 as follows: DDA CITY 2008 $ 285,269 $ 285,269 2009 $ 284,685 $ 284,685 2010 $ 257,392 $ 257,392 2011 $ 282,769 $ 282,769 2012 $ 283,373 $ 283,373 2013 $ 282,650 $ 282,650 2014 $ 280,640 $ 280,640 2015 $ 278,361 $ 278,361 2016 $ 274,832 $ 274,832 2017 $ 275,968 $ 275,968 2018 $ 272,763 $ 272,763 Totals: 3.058.702 3.2. The City will reimburse the County for the $1,274,000 which the County paid on behalf of the DDA, plus applicable interest. These payments will commence on September 30 2008, and continue annually until 2018 when the principle balance is repaid. The interest rate on the principal will be equal to the average City yield on investments during the period of the outstanding balance. The estimated repayment schedule is shown below. 2 Principal Interest Payment New Balance 2008 1,793,205 74,916 372,200 1,495,921 2009 1,495,921 62,496 186,100 1,372,317 2010 1,372,317 57,332 186,100 1,243,550 2011 1,243,550 ' 51,953 186,100 1,109,402 2012 1,109,402 ' 46,348 186,100 969,651 2013 969,651 ' 40,510 186,100 824,061 2014 824,061 ' 34,427 186,100 672,388 2015 672,388 ' 28,091 186,100 514,379 2016 514,379 ' 21,490 186,100 349,769 2017 349,769 ' 14,613 186,100 178,281 2018 178,281 7,448 186,100 (371) ' Interest rate for these payments will be based on average City yield on investments for the prior year. All other terms and conditions of the Updated IGA shall remain in full force and effect. This Agreement shall be effective upon the date of the last party to sign. Signatures on following pages. CITY OF FORT COLLINS, COLORADO, a municipal corporation Dated: By: Doug Hutchinson, Mayor ATTEST: APPROVED AS TO FORM: City Clerk Assistant City Attorney 3 LARIMER COUNTY, COLORADO, a political subdivision of the State of Colorado Dated: By: Glen Gibson Chair, Board of County Commissioners ATTEST: APPROVED AS TO FORM: Deputy Clerk County Attorney THE FORT COLLINS, COLORADO DOWNTOWN DEVELOPMENT AUTHORITY a body corporate and politic Dated: By: Jack Wolfe, Chairperson ATTEST: George Brelig, Secretary 4