HomeMy WebLinkAbout167 - 12/01/1998 - AUTHORIZING A REBATE OF CERTAIN IMPACT FEES ASSOCIATED WITH THE CONSTRUCTION OF A NEW MANUFACTURING ORDINANCE NO. 167, 1998
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING A REBATE OF CERTAIN IMPACT FEES
ASSOCIATED WITH THE CONSTRUCTION OF A 315,000 SQUARE FO
MANUFACTURING EXPANSION FACILITY FOR HEWLETT-PAC
WHEREAS, Hewlett-Packard (the "Company") is planning to constr t a 315,000 square
foot manufacturing facility at the southeast corner of Harmony Road an County Road 9 (the
"Facility"); and
WHEREAS, the Council of the City of Fort Collins has det fined that it is in the best
interests of the City that the Company construct the Facility and in imize its operation in the City;
and
WHEREAS,the Council has further determined that ' the Company constructs the Facility
and retains its administrative functions in the City, the Ci will realize approximately $8,000,000
initially,and henceforth approximately $1,500,000 ann lly in sales, use and property tax revenue,
of which nearly all is new revenue; and
WHEREAS,retention of the Company's anufacturing and administrative facilities in the
City will also benefit the City by stabilizing e Company's employment base and by providing
corresponding stimulation of the City's eco my; and
WHEREAS, the City has evalu ed the relative impacts of the construction and staffing of
the Hewlett-Packard project using th iscal and Environmental Impact Model, and has found the
benefits to the community in terms f increased returns to capital and labor, as well as increased tax
revenues, to be substantial, whe weighed against the relative costs and external impacts; and
WHEREAS,pursu to provisions of Section 5-326 of the Code of the City of Fort Collins
(the "Code"),the City M ager is recommending the rebate of certain impact fees to be paid by the
Company in connectio with its own construction acti,,ities; and
WHEREA , in consideration of the aforesaid benefits to the City which would result from
the constructio f the Company's manufacturing facility within the municipal boundaries of the
City, and afte considering the factors to be considered by the Council under Section 5-327 of the
Code, the until has determined that the Company should receive a rebate of certain impact fees
associate with the construction of the Facility; and
WHEREAS, pursuant to Ordinance No. 132, 1996, adopted by Council on November 5,
19 6,Hewlett-Packard received a rebate of certain fees paid in connection with a previous expansion
its facilities, totaling $219,267; and
Failed to pass on 11/17/98 1•y a 2-2 vote
WHEREAS, $88,775.63 of said rebate was not actually eligible for rebate because it
represented amounts paid for building permit and plan check fees, rather than for development
impact fees; and
WHEREAS, Hewlett-Packard's current rebate request would warrant a rebate in excess of
$88,775.63, the amount previously paid that was ineligible for rebate; and
WHEREAS,the Council believes that it would be in the best interests of the City to limit the
amount of any new rebate to$88,775.63,to offset the amount owed to the City by Hewlett-Packard,
and Hewlett-Packard is in agreement with this proposal.
NOW, THEREFORE BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1. That the Council hereby finds and declares that in accordance with Ordinance
No. 111, 1998: (1) a letter of intent to request a Development Fee Rebate was received from the
Company by the City for the subject Facility prior to the adoption of Ordinance No. 111, 1998 on
first reading; (2) all information required for determination of such rebate has been received by the
City and thus was received prior to October 1, 1998; and(3) the rebate to the Company set forth in
Section 2, below, is in accordance with the best interests of the City, in view of the criteria for
evaluation of the same under Section 5-327 of the Code.
Section 2. That a rebate of the full amount of impact fees paid by the Company to the
City could leave insufficient General Fund revenues available to mitigate the impacts of the Facility
upon the overall health, safety and welfare of the citizens of the City.
Section 3. That based on consideration of the factors set forth in Section 5-327 of the
Code, the Council hereby approves a rebate to the Company in the amount of$88,775.63, which
amount shall not actually be paid to the Company but shall offset the amount owed to the City by
the Company, as explained above, and shall be retained by the City.
Introduced and considered favorably on first reading and ordered published this 17th day of
November,A.D. 1998,and to be presented for final passage on the 1 st day of December,A.D. 1998.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading this 1 st day of December, A.D. 1998.
Mayor Pro Tern
ATTEST:
City Clerk