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
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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:
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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
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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