HomeMy WebLinkAbout169 - 12/16/2014 - APPROPRIATING FUNDS FROM THE CITY'S GENERAL FUND RESERVES FOR TRANSFER TO THE FORT COLLINS URBAN REN ORDINANCE NO. 169, 2014
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 URA REIMBURSEMENTS FOR THE PROSPECT STATION
PROJECT, AND APPROVING A LOAN AGREEMENT FOR THAT PURPOSE
WHEREAS, the Fort Collins Urban Renewal Authority (the "URA") was created on
January 5, 1982, by City Council's adoption of Resolution 1982-010, which Resolution
designated the City Council as the Board of Commissioners of the Authority; and
WHEREAS, by Resolution 2011-080, adopted on September 6, 2011, the City Council
found and declared that the area described in such Resolution (the "Midtown Area") is a blighted
area as described in the Part I, Article 26, Title 31 of the Colorado Revised Statutes (the "Act")
and under the Act the Midtown Area is an area appropriate for urban renewal projects; and
WHEREAS, by Resolution 2011-081, adopted on September 6, 2011, the City Council
approved an urban renewal plan for the Midtown Area in Fort Collins, which plan was amended
by City Council on May 7, 2013, in Resolution 2013-043 (the "Midtown Plan"); and
WHEREAS, the Midtown Plan established a tax increment district referred to as the
Prospect South Tax Increment District (the "TIF District") that includes the site of the Prospect
Station Redevelopment Project (the "Project"); and
WHEREAS, on September 17, 2013, the URA Board (the Board") approved a
Redevelopment Agreement (the "Redevelopment Agreement") between the Authority and
Prospect Station, LLC (the "Developer") to provide financial assistance for certain
improvements and enhancements for the Project; and
WHEREAS, by Resolution 2013-079, adopted on September 17, 2013, the City Council
declared its intent to fund a loan to the URA for the Project; and
WHEREAS, on August 15, 2006, the City Council adopted Resolution 2006-082
authorizing an intergovernmental agreement between the City and the URA providing that the
City would provide support services to the URA and advance funds to the URA in connection
with URA redevelopment projects; and
WHEREAS, on July 5, 2011, the City Council adopted Resolution 2011-055, requiring
that the intergovernmental agreement between the City and the URA expressly state that all loan
arrangements between the City and the URA must be documented by a loan agreement and
promissory note; and
WHEREAS, _URA staff has prepared a loan agreement titled "Loan Agreement between
the City of Fort Collins and the Fort Collins Urban Renewal Authority for Reimbursement for
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Prospect Station, LLC Infill Development," a copy of which is attached as Exhibit "A" and
incorporated herein (the "Loan Agreement"); and
WHEREAS, attached as Exhibit A to the Loan Agreement is the promissory note
proposed to evidence the loan under the Loan Agreement (the "Promissory Note"); and
WHEREAS, the Loan Agreement and the Promissory Note provide that the City will loan
the URA up to $247,000, the unpaid principal balance of which will accrue interest at the rate of
4.5 percent per annum compounded annually until paid in full; and
WHEREAS, there are sufficient prior year reserves in the General Fund to fund a loan to
the URA for the purpose of reimbursing the Developer for the improvements and enhancements
as described in the Redevelopment Agreement; and
WHEREAS, the City Manager recommends funding the loan to the URA from the
General Fund prior year reserves; 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.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF FORT COLLINS as follows:
Section I. The City Council hereby finds and determines, pursuant to the
Constitution,-the laws of the State, the City Charter and Code, and in accordance with the
foregoing recitals, that adopting this Ordinance, entering into the Loan Agreement and
performing all obligations set forth therein, are necessary, convenient, and in furtherance of the
City's purposes and are in the best interests of the inhabitants of the City, and will .serve the
important public purposes of remedying blighted conditions within the Midtown Area and the
TIF District pursuant to the Midtown Plan, providing a catalyst for redevelopment in the
Midtown Area, increasing sales tax revenues and job opportunities, and providing other
economic and social benefits to the City and surrounding community, and the City Council
hereby authorizes and approves the same.
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Section 2. That there is hereby appropriated from General Fund Reserves the sum of
TWO HUNDRED AND SEVENTY FOUR THOUSAND DOLLARS ($274,000) for transfer to
the URA as an interest-bearing loan, to provide the URA with the necessary financial support to
carry out its purposes and obligations under the Redevelopment Agreement.
Section 3. That the Loan Agreement is hereby approved, and the Mayor is authorized
to execute the Loan Agreement on behalf of the City, subject to such modifications in form or
substance, not inconsistent with the purposes or specific terms of this Ordinance, as the City
Manager may, in consultation with the City Attorney, deem desirable and necessary to protect
the City's interests.
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Introduced, considered favorably on first reading, and ordered published this 2nd day of
December, A.D. 2014, and to be presented for final passage on the 16th day of December, A.D.
2014.
C� DAID
M yor
ATTEST:
City Clerk
Passed and adopted on final reading on the 16th day of December, A.D. 2014.
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ATTEST: :�N
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City Clerk
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EXHIBIT "A"
LOAN AGREEMENT BETWEEN THE CITY OF FORT COLLINS
AND THE FORT COLLINS URBAN RENEWAL AUTHORITY
FOR REIMBURSEMENTS FOR PROSPECT STATION,LLC
INFILL DEVELOPMENT
(PROSPECT STATION)
THIS LOAN AGREEMENT (this "Agreement') is made this_day of November, 2014
(the"Effective Date")by and between the CITY OF FORT COLLINS, COLORADO,a home rule
municipal corporation, (the "City"), and FORT COLLINS URBAN RENEWAL AUTHORITY, a
public body corporate and politic of the State of Colorado, (the "URA" or"Borrower").
RECITALS
A. Borrower is the urban renewal authority for the City, created pursuant to Colorado
Revised Statutes Part 1 of Title 31, Article 25, as amended (the "Act').
B. Borrower was created to prevent and eliminate conditions related to certain "blight
factors" in the community. The Act gives the Borrower broad powers to carry out its statutory
mandate. Included are the powers to enter into contracts, borrow or lend funds and to acquire
property, among others. Urban renewal projects may be financed in a variety of ways and urban
renewal authorities are authorized to borrow money, issue bonds, and accept grants from public or
private sources.
C. By Resolution 2011-080, adopted and approved on September 6, 2011, the City
Council found and declared that the area described in such Resolution (the "Midtown Area") is a
blighted area as described in the Act and appropriate for an urban renewal project.
D. By Resolution 2011-081, adopted and approved on September 6, 2011, the City
Council adopted an urban renewal plan for the Midtown Area in Fort Collins.
E. By Resolution 2013-043, adopted and approved on May 7, 2013, the City Council
adopted amendments to the previously adopted urban renewal plan for the Midtown Area (as
amended, the"Urban Renewal Plan"or the"Plan"), the purpose of which is to eliminate blight and
otherwise implement and further the above-referenced Resolutions,and the purposes,policies,goals,
and objectives of the Borrower and the Plan, pursuant to the Act.
F. By the Intergovernmental Agreement approved and amended by City of Fort Collins
City Council Resolution 2006-082 and Resolution 2011-055, the City may advance funds to the
Borrower in support of its activities so long as any such advance of funds is evidenced in writing in
the form of a loan agreement and promissory note,and has been approved by both the City Council
and the Board of Commissioners of the URA (the `Board").
G. On September 17, 2013, the Board approved a Redevelopment Agreement (the
`Redevelopment Agreement")between the URA and Prospect Station,LLC ("Prospect Station") to
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EXHIBIT "A"
provide financial assistance for certain improvements and enhancements required by the Prospect
Station Redevelopment Project(referred to in the Redevelopment Agreement and hereinafter as the
"Project"); and
H. The Project is located within the Midtown Area.
I. In accordance with the Redevelopment Agreement the Borrower is obligated to
reimburse Prospect Station for certain costs relating to the design,construction and reconstruction of
all improvements, infrastructure,parking,streets,rights-of-way,buildings,structures,signage,and
landscaping to be constructed as part of the Project.
J. The Borrower has requested that the City provide funding in the form of a loan to the
Borrower for these obligations up to an amount not to exceed Two Hundred and Forty Seven
Thousand Dollars ($247,000) and City has agreed to make a loan on the terms and conditions
hereinafter set forth (the "Loan").
K. The Project is within the Prospect South Tax Increment District(the"Prospect South
TIF District") established in the Plan, and tax increment financing for the Project is specifically
permitted pursuant to Section 7 of the Plan, and is expected to generate an estimated Eight Hundred
and Sixty Five Thousand ($865,000) in tax increment revenues over the life of the Project.
L. The City Council has approved this Loan Agreement by its final adoption of
Ordinance No. XXXX, 2014, on December 16, 2014, and the Board has approved this Loan
Agreement by its adoption of Resolution XXX, on November 18, 2014.
NOW, THEREFORE, in consideration of the mutual covenants and agreements herein
contained, the parties agree as follows:
Section 1. The Loan. After the Effective Date and the execution of a promissory note
and other documents as may reasonably be required by the City,the City will loan the Borrower upon
demand hereunder an amount not to exceed Two Hundred and Forty. Seven Thousand Dollars
($247,000). All funds received by the Borrower hereunder shall be used for the purposes described
herein and in the Redevelopment Agreement.
Section 2. Interest. Interest on the Loan will accrue at a rate equal to 4.5% per annum
compounded annually.
Section 3. Payment. Principal and accrued interest will be due and payable by the
Borrower to the City as set forth in the payment schedule contained on Exhibit A, attached hereto
and incorporated herein by this reference. The Borrower's payments under this Agreement and the
Promissory Note described in Section 6 shall only be made from the Borrower's revenues received
from the Prospect South TIF District. Payments will apply to interest first,then to principal.If there
is unpaid interest at the end of any calendar year, the shortfall will be added to the outstanding
balance,resulting in the compounding of interest. All unpaid principal,interest,default interest,fees
and charges for the Loan shall mature on December 31, 2037.
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EXHIBIT "A"
Section 4. Prepayment. Borrower,in its sole discretion,may prepay all or any portion of
the payments due under this Agreement at any time and that prepayment will be without any
prepayment penalty. If a prepayment is made, the funds will go first toward any interest which has
accrued and the balance then applied to the reduction of principal. Any partial prepayment shall not
postpone the due date of any subsequent payments or change the amount of such payments as
required in Exhibit A.
Section 5. Tracking. Borrower agrees to maintain a separate payable line-item within its
accounting system to track the Loan.
Section 6. Promissory Note. Borrower's obligations hereunder shall be documented in a
Promissory Note in substantially the form set forth as Exhibit B, attached hereto and incorporated
herein by this reference.
Section 7. Notice. Any notice required to be delivered in writing will be accomplished
by personal delivery or mailing postage prepaid by the United States Postal Service, or other
commercial carver to the following addresses:
If to the Citv
City of Fort Collins
Director of Finance
PO Box 580
Fort Collins, CO 80522-0580
If to the Borrower
Fort Collins Urban Renewal Authority
Redevelopment Program Manager
PO Box 580
Fort Collins, CO 80522-0580.
Section 8. Entire Agreement. This Agreement shall be construed according to its fair
meaning,as if prepared by both parties, and it shall constitute the entire understanding and agreement
of the parties related to the matters addressed in this Agreement.
CITY:
CITY OF FORT COLLINS, COLORADO, a
municipal corporation
By:
Karen Weitkunat, Mayor
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EXHIBIT "A"
ATTEST:
By:
City Clerk
APPROVED AS TO FORM:
By:
Senior Assistant City Attorney
BORROWER:
FORT COLLINS URBAN RENEWAL
AUTHORrFY, a public body corporate and politic of
the State of Colorado.
By:
Darin Atteberry,Executive Director
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Exhibit"A"to Loan Agreement
Midtown URA
Prospect Station
Reimbursement Agreement to City from the URA (General Fund)
Reimbursement Amount 247,000.00 Start Date 31-Dec-15
Interest Rate 4.500% Matures 31-Dec-37
Pa ment $17,458.58 Payment Years 23
Time in
Years Date Payment Interest Principal Balance
1.000 31-Dec-15 $ (17,458.58) $ (11,115.00) $ (6,343.58) (240,656.42)
2.000 31-Dec-16 (17,458.58) (10,829.54) (6,629.04) (234,027.38)
3.000 31-Dec-17 (17,458.58) (10,531.23) (6,927.35) (227,100.03)
4.000 31-Dec-18 (17,458.58) (10,219.50) (7,239.08) (219,860.95)
5.000 31-Dec-19 (17,458.58) (9,893.74) (7,564.84) (212.296.11)
6.000 31-Dec-20 (17,458.58) (9,553.32) (7,905.26) (204,390.85)
7.000 31-Dec-21 (17,458.58) (9,197.59) (8,260.99) (196,129.86)
8.000 31-Dec-22 (17,458.58) (8,825.84) (8,632.74) (187,497.12)
9.000 31-Dec-23 (17,458.58) (8,437.37) (9,021.21) (178,475.91)
10.000 31-Dec-24 (17,458.58) (8,031.42) (9,427.16) (169,048.75)
11.000 31-Dec-25 (17,458.58) (7,607.19) (9,851.39) (159,197.36)
12.000 31-Dec-26 (17.458.58) (7,163.88) (10,294.70) (148,902.66)
13.000 31-Dec-27 (17,458.58) (6,700.62) (10,757.96) (138.144.70)
14.000 31-Dec-28 (17,458.58) (6,216.51) (11.242.07) (126.902.63)
15.000 31-Dec-29 (17,458.58) (5,710.62) (11,747.96) (115,154.67)
16.000 31-Dec-30 (17,458.58) (5,181.96) (12,276.62) (102,878.05)
17.000 31-Dec-31 (17,458.58) (4,629.51) (12,829.07) (90,048.98)
18.000 31-Dec-32 (17,458.58) (4,052.20) (13,406.38) (76,642.60)
19.000 31-Dec-33 (17,458.58) (3,448.92) (14,009.66) (62,632.94)
20.000 31-Dec-34 (17,458.58) (2,818.48) (14,640.10) (47,992.84)
21.000 31-Dec-35 (17,458.58) (2,159.68) (15,298.90) (32,693.94)
22.000 31-Dec-36 (17,458.58) (1,471.23) (15,987.35) (16,706.59)
23.000 31-Dec-37 (17,458.39) (751.80) (16.706.59) 0.00
$ (401,547.15) $(154,547.15) $ (247,000.00)
Exhibit"B"to Loan Agreement
PROMISSORY NOTE
$247,000 November. 2014
FOR VALUE RECEIVED, THE FORT COLLINS URBAN RENEWAL AUTHORITY, a public
body corporate and politic of the State of Colorado ('Borrower'), promises to pay to the order
of THE CITY OF FORT COLLINS, COLORADO, a home rule municipal corporation ("Lender"),
at its office at 300 LaPorte Avenue, Fort Collins, Colorado 80524, in lawful money of the United
States of America the principal amount of Two Hundred and Forth Seven Thousand Dollars
($247,000) (the "Loan Amount"). This Promissory Note is issued pursuant to the "Loan
Agreement between the City of Fort Collins and the Fort Collins Urban Renewal Authority for
Reimbursements for the Prospect Station Infill Development (Prospect Station)", which Loan
Agreement is dated November_, 2014 (the "Agreement').
Capitalized terms used herein but not defined herein have the meanings given such
terms in the Agreement. The obligations of Borrower evidenced by this Promissory Note are
payable in accordance with the terms and conditions of the Agreement.
The rate of interest on the Loan Amount is a fixed rate equal to 4.5% per annum
compounded annually ("Interest Rate").
This Promissory Note shall mature on December 31, 2037. At such time all unpaid
principal, interest, default interest, fees and charges, and any additional amount due and owing
under this Note shall be deemed payable in full.
Unless otherwise agreed or required by applicable law, payments will be applied first to
any accrued interest; then to principal; then to any late charges; and then to any unpaid
collection costs.
Borrower may prepay the principal and interest outstanding under this Note, in whole
or part, at any time without penalty. Any partial prepayment shall not postpone the due date of
any subsequent payments or change the amount of such payments as required in the
Agreement.
If Lender refers this Note to an attorney for collection or seeks legal advice following a
default beyond all cure periods alleged under this Note, or the Lender is the prevailing party in
any action instituted on this Note, or if any other judicial or non-judicial action, suit or
proceeding is instituted by Lender or any future holder of this Note, and an attorney is
employed by Lender to appear in any such action or proceeding, or to reclaim, seek relief from
a judicial_or statutory stay, sequester, protect, preserve or enforce Lender's interest in this Note,
the Agreement or any other security for this Note (including, but not limited to, proceedings
under federal bankruptcy law or u1 connection with any state or federal tax lien), then Borrower
promises to pay reasonable attorneys' fees and reasonable costs and expenses incurred by
Exhibit'B"to Loan Agreement
Lender and/or its attorney in connection with the above-mentioned events. If not paid within
ten (10) days after such fees become due and written demand for payment is made, such
amount shall be due on demand or may be added to the principal, at the Lender's discretion.
Should any payment or installment hereunder be not paid when,the same becomes due
and payable, Borrower recognizes that the Lender will incur extra expenses for both the
administrative cost of handling delinquent payments and the cost of funds incurred by Lender
after such due date as a result of not having received such payment when due. Therefore,
Borrower shall, in such event, without further notice, and without prejudice to the right of
Lender to collect any other amounts provided to be paid herein, including default interest or to.
declare a default hereunder, pay to Lender to cover such expenses incurred as a result of any
installment payment due being not received within ten (10) days of its due date, a 'late charge'
of five percent (5%) of the amount of such delinquent payment.
Except as otherwise provided herein, the Borrower waives presentment and demand for
payment, notice of acceleration or of maturity, protest and notice of protest and nonpayment,
bringing of suit and dffigence in taking any action to collect sums owing hereunder and agrees
that its liability on this Note shall not be affected by any release or change in any security for the
payment of this Note or release of anyone liable hereunder. No extension of time for the
payment of this Note, or any installment or other modification of the terms made by the Lender
with any person now or hereafter liable for the payment of this Note, shall affect the original
liability under this Note of the Borrower, even provided the Borrower is a party to such
agreement.
In no event whatsoever shall the amount paid, or agreed to be paid, to the holder of this
Note for the use, forbearance or retention of the money to be advanced hereunder ("Interest")
exceed the maximum amount permissible under applicable law. If the performance or
fulfillment of any provision hereof or of the Agreement or any other document between
Borrower and the Lender of this Note shall result in Interest exceeding the limit for interest
prescribed by law, then the amount of such Interest shall be reduced to such limit. If, from any
circumstance whatsoever, the Lender of this Note should receive as Interest, an amount which
would exceed the highest lawful rate, the amount which would be excessive Interest shall be
applied to the reduction of the principal balance owing (or, at the option of the Lender, be paid
over to Borrower) and not to the payment of Interest.
If any provision hereof or any provision of the Agreement shall, for any reason and to
any extent, be invalid or unenforceable, then the remainder of the document or instrument in
which such provision is contained shall not be affected thereby but instead shall be enforceable
to the maximum extent permitted by law.
Borrower and Lender hereby knowingly, voluntarily, and intentionally waive any rights
they may have to a trial by jury in respect of any litigation based hereon or arising out of, under
or in connection with this note or any course of conduct, course of dealing, statements (whether
oral or written) or actions of the other party.
Exhibit'B"to Loan Agreement
This Promissory Note shall be construed in accordance with the laws of the State of
Colorado.
IN WITNESS WHEREOF, Borrower has duly executed this Promissory Note as of the
day and year first above written.
BORROWER:
FORT COLLINS URBAN RENEWAL
AUTHORITY, a public body corporate and politic
of the State of Colorado.
� By:
Darin Atteberry, Executive Director,
Dated:
ATTEST:
URA Secretary
APPROVED AS TO FORM:
URA Attorney
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