HomeMy WebLinkAbout129 - 08/04/1998 - AUTHORIZING A REBATE OF CERTAIN IMPACT FEES ASSOCIATED WITH THE CONSTRUCTION OF A NEW 200,000 SQ. FT ORDINANCE NO. 129, 1998
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROVING AND AUTHORIZING A REBATE OF CERTAIN
IMPACT FEES ASSOCIATED WITH THE CONSTRUCTION
OF A NEW 200,000 SQUARE FOOT OFFICE FACILITY FOR CELESTICA COLORADO
WHEREAS,Celestica Colorado(the"Company") is planning to construct a 200,000 square
foot manufacturing facility at the southeast corner of Harmony Road and County Road 9 (the
"Facility"); and
WHEREAS, the Council of the City of Fort Collins has determined that it is in the best
interests of the City that the Company construct its Facility and maximize its operation in the City;
and
WHEREAS,the Council has further determined that,if the Company constructs the Facility
and retains its administrative functions in the City, the City will realize approximately $1,177,000
initially,and henceforth approximately$500,000 annually in sales,use and property tax revenue,of
which nearly all is new revenue; and
WHEREAS, retention of the Company's manufacturing and administrative facilities in the
City will also benefit the City by stabilizing the Company's employment base and by providing
corresponding stimulation of the City's economy; and
WHEREAS, the City has evaluated the relative impacts of the construction and staffing of
the Celestica Colorado project using the Fiscal and Environmental Impact Model,and has found the
benefits to the community in terms of increased returns to capital and labor, and tax revenues to be
substantial, when weighed against the relative costs and external impacts; and
WHEREAS, the Council previously adopted Resolution 94-126, amending the City's
Economic Development Policy to provide for a case-by-case consideration of financial incentives
for base industry; and
WHEREAS,pursuant to provisions of Section 5-326 of the Code of the City of Fort Collins
(the"Code"),the City Manager is recommending the rebate of certain impact fees to be paid by the
Company in connection with its own construction activities; and
WHEREAS,the Company intends to use a portion of the proceeds from the proposed rebate
to address the affordable housing and childcare needs of residents within the City; and
WHEREAS, Council also adopted Ordinance No. 123, 1994 amending Article VII Chapter
5 of the Code so as to permit the consideration and rebate of impact fees on a case-by-case basis for
the purpose of economic development; and
WHEREAS, in consideration of the aforesaid benefits to the City which would result from
the construction of the Company's manufacturing facility within the municipal boundaries of the
City, and after considering the factors to be considered by the Council under Section 5-327 of the
Code, the Council has determined that the Company should receive a rebate of certain impact fees
associated with the construction of its new building pursuant to the aforementioned program; and
WHEREAS,the Council has further determined that the funds of the City that shall be used
to rebate the impact fees shall derive from the sales, use and property taxes paid by the Company,
and that in no event shall the rebate be paid until such time that the City has received full payment
of all taxes to cover the amount of the impact fee rebate granted.
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
Celestica Colorado (the "Company") by the City for the subject Facility prior to the adoption of
Ordinance No. I I I 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)that 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 Celestica 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 and subject to the limitation set forth in Section 4,below,the Company shall receive a rebate
of Forty Percent (40 %) of the total amount of impact fees actually paid by the Company upon
issuance of a building permit for the Facility, not to exceed $336,000.
Section 4. That all rebate amounts paid to the Company shall derive from sales,use and
property tax payments received by the City from the Company; that no such amounts shall not be
paid to the Company prior to receipt by the City of full payment of taxes from the Company
sufficient to offset the total rebate amount approved hereunder; and that in no event shall any such
rebate amounts paid exceed the amount of impact fees actually received by the City from the
Company.
Introduced and considered favorably on first reading and ordered published this 21 st day of
July, A.D. 1998, and to be presented for final passage on the 4th o ugust, A.D. 19
Mayor
ATTEST:
lam�, k A I L
City Clerk
Passed and adopted on final reading this 4th day of Augu V. 1998.
Mayor
ATTEST:
City Clerk