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HomeMy WebLinkAbout053 - 06/09/2009 - APPROPRIATING FUNDS FROM THE CITY'S GENERAL FUND RESERVES FOR TRANSFER TO THE FORT COLLINS URBAN REN ORDINANCE NO. 053, 2009 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING FUNDS FROM THE CITY'S GENERAL FUND RESERVES FOR TRANSFER TO THE FORT COLLINS URBAN RENEWAL AUTHORITY FOR THE PURPOSE OF PROVIDING A LOAN FOR THE ROCKY MOUNTAIN INNOVATION INITIATIVE PROJECT WHEREAS, the Fort Collins Urban Renewal Authority (the "Authority") was created on January 5, 1982 to prevent and eliminate conditions related to certain blight factors in the City; and WHEREAS, the City Council, by Resolution 2004-152, has made findings required by Colorado Revised Statutes Part 1 of Title 31, Article 25 and declared the area described in Resolution 2004-151 as blighted and approved the Urban Renewal Plan for the North College Avenue Corridor (the "Plan"); and WHEREAS,on August 15,2006,the City Council adopted Resolution 2006-082 authorizing an intergovernmental agreement between the City and the Authority whereby the City will provide support services to the Authority and will advance funds to the Authority so long as the advance of such funds is evidenced in writing by a promissory note; and WHEREAS, the Rocky Mountain Innovation Initiative is a private 501(c)(3) non-profit lerating the success of high growth, high impact, organization with a mission of enabling and acce innovation-based startup companies and promoting the development of an entrepreneurial culture and infrastructure to sustain and nurture scientific and technology-based industries in the Northern Colorado region; and WHEREAS, RMI2 has evolved from the successful Fort Collins Technology Incubator launched by the City in 1998 and funded over the years by the City,Colorado State University,CSU Ventures and the Northern Colorado Economic Development Corporation; and WHEREAS,RMI2 has contracted with a local developer to acquire property for,design,and construct a 31,000 square foot, 4-story, LEED Gold certified building and related improvements near the intersection of East Vine Drive and Redwood Street (the "Project"); and WHEREAS, RMI2 has requested that the Authority finance the Project; and WHEREAS, RMI2 will partially repay the loan from the Authority with rental income generated by leasing office space in the building and with funds obtained through fund-raising efforts; and WHEREAS,the balance of the loan will be repaid using the tax increment funding generated by the increased increment of property tax that will be collected because of the Project; and WHEREAS,the Authority recognizes the benefit that will result to the Plan area because of the Project and has determined that it is in the best interest of the Authority to make the loan requested by RMI2 and commit the additional increment of property tax generated by the Project to funding the construction of the Project; and WHEREAS,the Authority must borrow funds to pay for the construction of the Project;and WHEREAS, the City Council has adopted Resolution 2008-121, which updated the City's Investment Policy to allow for interfund borrowing; and WHEREAS, City staff has prepared and placed on,file in the office of the City Clerk a proposed promissory note (the "Note") and loan agreement in the form entitled"Loan Agreement Between the City of Fort Collins and the Fort Collins Urban Renewal Authority for funding the Rocky Mountain Innovation Initiative Project" (the "Loan Agreement"); and WHEREAS, the City has funds available in its General Fund Reserves to fund the loan to the Authority and finds it is in the best interests of the City to authorize execution of the Loan Agreement and certain related documents; and WHEREAS,Article V,Section 9,of the City Charter permits the City Council to appropriate by ordinance at any time during the fiscal year such funds for expenditure as may be available from reserves accumulated in prior years, notwithstanding that such reserves were not previously appropriated; and WHEREAS, it is the desire of the Council to appropriate the sum of $5,303,939 from General Funds Reserves for transfer to the Fort Collins Urban Renewal Authority, as a loan. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That there is hereby appropriated from General Fund Reserves the sum of FIVE MILLION THREE HUNDRED THREE THOUSAND NINE HUNDRED THIRTY NINE DOLLARS($5,303,939)for transfer to the Fort Collins Urban Renewal Authority and appropriated therein as an interest-bearing loan, to provide the Fort Collins Urban Renewal Authority with the necessary financial support for the Rocky Mountain Innovation Initiative Project. Section 2. That the Note, Loan Agreement and related documents are hereby approved by the City Council on substantially the terms and conditions contained therein, subject to modifications in form or substance as the Mayor may, in consultation with the City Attorney,deem to be desirable and necessary to protect the interests of the City. -2- Introduced, considered favorably on first reading, and ordered published this 12th day of May, A.D. 2009, and to be presented for final passage on the 9t a of June, A.D. 2009. Mayor ATTEST:_ City Clerk , Passed and adopted on final reading on the 9th day of June, A.D. 2009. a May r ATTEST: _ 7- ,City Clerk 1 -3-