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HomeMy WebLinkAbout2022-033-02/15/2022-Approving and authorizing the execution of a memorandum of understanding with housing catalyst regarr RESOLUTION 2022-033 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROVING AND AUTHORIZING THE EXECUTION OF A MEMORANDUM OF UNDERSTANDING WITH HOUSING CATALYST REGARDING THE PROPOSED REDEVELOPMENT OF THE CITY’S REMINGTON STREET PARKING LOT WHEREAS,the City is the record fee title owner of the real property described as Lots 1 through 8,Block 122 in the City of Fort Collins,Colorado (the “Property”),informally referred to as the Remington Street parking lot;and WHEREAS,the mission of Housing Catalyst is to create vibrant,sustainable communities throughout Fort Collins,including the development of new residential units that provide long-term affordable housing solutions;and WHEREAS,pursuant to Colorado Revised Statutes (“C.R.S.”)Section 29-4-209(l)(d), Housing Catalyst has the power and authority to provide for the construction,management,and operation of projects providing for dwelling accommodation that substantially benefits persons of low income as determined by Housing Catalyst;and WHEREAS,pursuant to C.R.S.Section 29-4-209(1)(d.7),Housing Catalyst has the power and authority to establish entities controlled by Housing Catalyst to own,construct,and operate projects providing for dwelling accommodation that substantially benefits persons of low income as determined by Housing Catalyst;and WHEREAS,pursuant to C.R.S.Section 29-4-209(I)(t),Housing Catalyst has the power and authority to enter into contracts and agreements necessary or convenient to the exercise of its powers and authority;and WHEREAS,Housing Catalyst has substantial experience in developing and managing qualified-affordable housing projects,and in light of such experience,City staff has engaged with Housing Catalyst to consider and further develop the concept of potentially redeveloping the Property as a mixed-use building containing qualified-affordable housing while retaining public parking (the “Project”);and WHEREAS,the City and Housing Catalyst anticipate that the Project would be funded,at least in part,by funding currently being offered by the Colorado Department of Local Affairs (“DOLA”);and WHEREAS,staff has recommended the City and Housing Catalyst form a relationship under which Housing Catalyst will be able to show sufficient site control and existence of a conceptual and financial plan regarding the Project,subject to negotiation of final terms and conditions and final approval,to obtain said DOLA funding or other appropriate funding;and WHEREAS,in order to accomplish this,City staff and Housing Catalyst have negotiated the Memorandum of Understanding attached as Exhibit “A”and incorporated by reference (the “MOU”);and r WHEREAS,the City and Housing Catalyst acknowledge in the MOU that although the MOU is not a binding agreement,they intend to cooperate in good faith to negotiate and enter into a binding agreement under which the parties would further pursue redevelopment of the Property; and WHEREAS,the City Council hereby finds that the MOU is necessary for the public’s health,safety,and welfare and is in the best interests of the City and its residents,businesses and public and private organizations. NOW,THEREFORE,BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1.That the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. Section 2.That the MOU is hereby approved and the Mayor is authorized to execute it substantially in the form attached as Exhibit “A”,together with such revisions and amendments as the City Manager,in consultation with the City Attorney,determines to be necessary and appropriate to protect the interests of the City or to effectuate the purposes of this Resolution. Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 15th day of February,A.D.2022. ATTEST: r EXHIBIT A MEMORANDUM OF UNDERSTANDING PERTAINING TO REDEVELOPMENT OF REMINGTON STREET PARKING LOT THIS MEMORANDUM OF UNDERSTANDING is made and entered into this day of ___________,2022,(this “MOU”)by and between the City of Fort Collins,Colorado,a Colorado home rule municipality (the “City”)and Housing Catalyst,a body corporate and politic (“Housing Catalyst”).The City and Housing Catalyst shall hereafter be collectively referred to as the “Parties.” RECITALS WHEREAS,the City is the record fee title owner of the real property described as Lots I through 8,Block 122 in the City of Fort Collins,Colorado (the “Property”),informally referred to as the Remington Street parking lot;and WHEREAS,the mission of Housing Catalyst is to create vibrant,sustainable communities throughout Fort Collins,including the development of new residential units;and WHEREAS,Housing Catalyst is the community leader in sustainable,long-term affordable housing solutions;and WHEREAS,pursuant to Colorado Revised Statutes (“C.R.S.”)Section 29-4-209(1)(d), Housing Catalyst has the power and authority to provide for the construction,management,and operation of projects providing for dwelling accommodation that substantially benefits persons of low income as determined by Housing Catalyst;and WHEREAS,pursuant to C.R.S.Section 29-4-209(l)(d.7),Housing Catalyst has the power and authority to establish entities controlled by Housing Catalyst to own,construct,and operate projects providing for dwelling accommodation that substantially benefits persons of low income as determined by Housing Catalyst;and WHEREAS,pursuant to C.R.S.Section 29-4-209(l)(t),Housing Catalyst has the power and authority to enter into contracts and agreements necessary or convenient to the exercise of its powers and authority;and WHEREAS,Housing Catalyst has substantial experience in developing and managing qualified-affordable housing projects,and in light of such experience,City staff has engaged with Housing Catalyst to consider and further develop the concept of potentially redeveloping the Property as a mixed-use building containing qualified-affordable housing while retaining public parking (the “Project”);and EXHIBIT A a.The Parties acknowledge that they are in the process of determining the amount of funding necessary for the Project,as well as the sources of such funding. b.The Parties agree that Housing Catalyst shall be responsible for obtaining funding from Operation Turnkey,a funding program offered by the Colorado Department of Local Affairs,Division of Housing,Office of Housing Finance and Sustainability and the Office of Homeless Initiatives (collectively, “DOLA”).Housing Catalyst shall be responsible for the costs associated with applying for said funds.Said funding program is intended,in part,for the acquisition of land and or existing properties suitable for the purpose of providing or developing affordable housing for extremely low to moderate income individuals and families (“DOLA Funding”). c.The Parties acknowledge that the DOLA Funding may not be available,or upon further due diligence may not be appropriate for Housing Catalyst’s needs for the Project.Accordingly,the Parties agree to work in good faith towards identifying and pursuing other appropriate sources of funding, including but not limited to federal or state funding opportunities (“Funding”). d.The Parties shall in good faith continue to work toward an agreement on the amount and sources of funding for the Project. 5.Long-Term Ground Lease.In support of Housing Catalyst’s submission of an application to DOLA for funding,the City intends that Housing Catalyst shall have the option to enter into a long-term ground lease with the City for the Property,on such terms and conditions as the Parties may agree,but with a term of ninety-nine (99)years (the “Lease”).Housing Catalyst acknowledges that the Lease shall be subject to the approval of the City Council of the City of Fort Collins by ordinance,in its sole discretion.Each party shall be responsible for its own costs and attorney fees in the negotiation and preparation of the Lease. 6.Covenants and Conditions.The Project may be subject to certain covenants and conditions to be set forth in the Binding Agreement,including but not limited to: a.Preservation or replacement of all existing public and permitted parking spaces existing on the Property,which currently total 152,in addition to providing adequate parking for the proposed development; b.Operation of the parking under an agreement;and 3 r r EXHIBIT A b.Denial of Housing Catalyst’s application(s)for Funding; c.Despite reasonable and good faith efforts,the Parties are unable to reach agreement on any matter for which the future agreement of the Parties is necessary for completion of the Project;or d.Either party is unable to perform its obligations under this MOU or to otherwise complete the Project as envisioned hereunder. If either party terminates this MOU,each party shall be responsible for its own costs related to its performance pursuant to this MOU. 11.Cooperation.The Parties agree to act in good faith and cooperate each with the other to effectuate the terms and provisions of this MOU and to execute any and all additional documents or take such additional action as may be reasonably necessary or appropriate to effectuate the terms and provisions of this MOU. 12.No Waiver of City Land Use Authority or other Laws.In signing this MOU,and agreeing to cooperate and negotiate regarding the Project,the City is not waiving its land use authority or any other legal,regulatory,permitting or other authority granted to it by law,including the Charter and Code of the City of Fort Collins. 13.Representatives and Notices.The Parties’respective designated representatives and legal counsel for negotiations and communications concerning future negotiations, and their contact information,are as follows: For the City:Clay Frickey Redevelopment Program Manager 222 Laporte Ave. Fort Collins,CO 80521 970-416-2517 cfricke~a fcgov.com Meaghan Overton Housing Manager 222 Laporte Ave. Fort Collins,CO 80521 970-416-2283 moverton fcgo .com C C EXHIBIT A IN WITNESS WHEREOF,the Parties have executed this MOU as of the date and year first above written. HOUSING CATALYST, a body corporate and politic. By: Julie J.Brewen,CEO Date:___________________________ CITY OF FORT COLLINS,COLORADO, a Colorado home rule municipality. By:______________ Mayor Jeni Arndt Date:________________ Attest: City Clerk Approved as to Form: Assistant City Attorney