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HomeMy WebLinkAbout1997-091-06/17/1997-IGA LAPORTE AND MASON PARKING STRUCTURE RESOLUTION 97-91 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING AN INTERGOVERNMENTAL AGREEMENT AMONG THE CITY OF FORT COLLINS, LARIMER COUNTY AND THE DOWNTOWN DEVELOPMENT AUTHORITY RELATING TO THE CONSTRUCTION AND OPERATION OF A NEW PARKING STRUCTURE TO BE LOCATED AT THE SOUTHEAST CORNER OF LAPORTE AVENUE AND MASON STREET WHEREAS, over the past several months, City staff has been meeting with representatives from Larimer County and the Downtown Development Authority (the "DDA") to discuss opportunities to construct and operate a new parking structure in the downtown area; and WHEREAS,the need for such a parking structure is identified in both the City's Civic Center Master Plan and the Downtown Parking Plan; and WHEREAS, it is anticipated that, in November, 1997,the electorate of Larimer County will be considering a ballot proposal for funding a new Larimer County Justice Center; and WHEREAS, it is important from a planning standpoint that Larimer County and the City coordinate their efforts for the provision of new public facilities in the downtown area and that such facilities support other existing and proposed public projects and private businesses; and WHEREAS, toward that end, Larimer County, the DDA and the City have reached an understanding with regard to certain concepts pertaining to the financing, construction, ownership, operation and maintenance of a new parking structure,to be located at the southeast corner of Mason Street and LaPorte Avenue; and WHEREAS,the parties wish to enter into a written intergovernmental agreement setting forth their understanding and expectations with regard to said parking structure. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS,that the Mayor is hereby authorized to enter into an intergovernmental agreement among the City, Larimer County and the Downtown Development Authority upon such terms and conditions contained in Exhibit"A"attached hereto and incorporated herein by this reference, with such minor modifications in form and substance as the City Manager and the City Attorney may deem necessary and advisable to effectuate the purposes of this Resolution; provided, however, that all subsequent agreements to be executed by the City in furtherance of said intergovernmental agreement, as well as the appropriation of all necessary funds for such purpose, shall be subject to review and approval by the City Council. Passed and adopted at a regular meeting of the City Council held this 17th day of June,A.D. 1997. Mayor Pro TOM ATTEST: City Clerk EXHIBIT A INTERGOVERNMENTAL AGREEMENT BY AND AMONG THE CITY OF FORT COLLINS, COLORADO, THE COUNTY OF LARIMER, COLORADO AND THE FORT COLLINS, COLORADO DOWNTOWN DEVELOPMENT AUTHORITY This Intergovernmental Agreement is made and entered into this day of June, 1997, by and among The City of Fort Collins, Colorado, a municipal corporation, having its principal offices at 300 LaPorte Avenue, Fort Collins, Colorado 80521 (the "City") , The County of Larimer, Colorado, a political subdivision of the State of Colorado, having its principal offices at 200 West Oak Street, Fort Collins, Colorado 80521 (the "County") , and The Fort Collins, Colorado Downtown Development Authority, a body corporate and politic established pursuant to Title 31, Article 25, Part 8 of the 1973 Colorado Revised Statutes, as amended, having its principal offices at One West Art Center, 201 S. College Avenue, Fort Collins, Colorado 80524 (the "DDA") . RECITALS WHEREAS, all three parties are governmental entities authorized by Colorado statute to enter into intergovernmental agreements to carry out their respective purposes; and WHEREAS, the County intends to place an item on the ballot this November which, if passed, authorizes the imposition of a sales tax to fund the construction of a justice center (the "Justice Center") in the central business district of the City on Block 31 of the City according to the recorded plat thereof ("Block 31") ; and WHEREAS, current parking facilities within the City's central business district are insufficient to meet all of the competing needs for parking in this area, and the construction of the Justice Center will increase the need for additional parking; and WHEREAS, the City, the County and the DDA share a common interest in providing adequate parking to meet the needs of their respective constituents, and it is in the best interests of these constituents that the City, the County and the DDA work cooperatively toward that end; and WHEREAS, the City, the County and the DDA have agreed in concept to certain shared responsibilities to enable the construction, operation and maintenance of a parking garage to be located within downtown Fort Collins, near the Justice Center (the "Parking Garage") ; and WHEREAS, through extensive good faith discussions, representatives of the three parties have agreed to certain concepts and parameters set forth below which are intended to form the basis of binding agreements among the parties in connection with the Parking Garage. NOW, THEREFORE, by and in consideration of the above premises and the within terms and conditions, the parties hereto agree as follows: 1. PARKING GARAGE The intended location of the Parking Garage is the LaPorte/ America Parking Lot at the intersection of Mason Street and LaPorte Avenue. In order to meet current and anticipated long-term parking needs, the parties envision that the Parking Garage will consist of approximately nine hundred (900) parking spaces. Although it has not yet been designed, it is envisioned that the Parking Garage will have a retail component and, in addition to meeting all building and zoning requirements of the City, will be generally compatible with the character of downtown Fort Collins, the Justice Center and the City's Civic Center Plan and Downtown Parking Plan. A transit center component may be added to the Parking Garage, and, if so added, the construction, operation and maintenance costs therefor will be borne by the City. The design for the Parking Garage will be prepared after execution of the agreement(s) described in paragraph 4 below and will be submitted to and approved by all of the parties to this Intergovernmental Agreement. 2 . FINANCING OF PARKING GARAGE The parties anticipate that the Parking Garage will be constructed in the same general timeframe as, and in coordination with, construction of the Justice Center, which is planned to commence approximately one (1) year from the date of the County sales tax election in November of 1997 . 2 . 1 Construction Cost. The estimated cost to construct the Parking Garage is Nine Million Nine Hundred Thousand Dollars ($9, 900, 000) . The parties envision that a separate non-profit corporation (the "Corporation") will be created to own the Parking Garage and lease the Parking Garage to the City or the parties, that there will be executed and delivered twenty (20) year lease certificates of participation ("Certificates") in the amount of Nine Million Nine Hundred Thousand Dollars ($9 ,900, 000) , with a per-annum interest rate of approximately six and one-half percent (6. 5%) to finance the construction of the Parking Garage, and that the Certificates will be secured by an assignment of lease rentals and a mortgage of the Parking Garage with rights of access. 2 .2 Initial Cost Allocation. Prior to the year 2007, the anticipated sources of revenue backing such Certificates would come from lease payments from the City, the County and the DDA, with the annual lease payment for each entity to be an amount equal to one-third (1/3) of the cost to service the 2 debt on the Certificates. Assuming Certificates issued in the amount of Nine Million Nine Hundred Thousand Dollars ($9 , 900, 000) for twenty (20) years with an annual interest rate of six and one-half percent (6. 5%) , the annual debt service would be Nine Hundred Thousand Dollars ($900, 000) , resulting in an expected annual lease payment from each party of approximately Three Hundred Thousand Dollars ($300, 000) . 2 . 3 Cost Allocation After 2006. The enabling legislation for downtown development authorities sets a maximum period during which such authorities can collect tax increment monies. At such time as the DDA is no longer entitled to collect such monies from properties within its boundaries, which will occur in 2007, the parties envision that the DDA would no longer make lease payments, and the City and the County would, thereafter, each make annual lease payments in an amount equal to one-half the cost to service the debt on the Certificates. 2 .4 Retail Component. In the event a retail component is included in the Parking Garage, the parties intend that a lease would be executed between the Corporation and a private third party, with the lease payment being sufficient to service both the cost of construction of such space and its operation and maintenance costs or, if the private third party is required to obtain its own financing for the cost of construction of such space, only its operation and maintenance costs. 2 .5 Sources of Payment. The parties have identified sources of payment for each party's annual lease payment as follows: County ► General fund and/or sales tax revenue authorized in the November 1997 County election. City ► General fund and/or General Improvement District No. 1 funds. DDA or City on behalf of DDA ► Available tax increment monies above the amount necessary to service the debt on outstanding tax increment bonds and to fund the reserve in connection with such bonds. 3 3 . CONSTRUCTION, OWNERSHIP, OPERATION AND MAINTENANCE OF PARKING GARAGE 3 . 1 Construction and Ownership of Parking Garage. The City is the owner of the LaPorte/America Parking Lot, the proposed site for the Parking Garage. The parties envision that the City would sell or lease the LaPorte/America Parking Lot to the Corporation. The Parking Garage would be constructed by the Corporation using the financing described in paragraph 2 above. 3 .2 Lease Agreements. After construction of the Parking Garage, the parties hereto envision that the Corporation would enter into a lease purchase agreement with the City or the parties for the Parking Garage. If the former, the City would enter into subleases with the DDA and the County for parking spaces within the Parking Garage. All parking spaces leased by the DDA would be designated for general public parking. The lease payment obligations of the parties would be in accordance with the payment provisions of paragraph 2 above. All lease agreements to which a party hereto is a signatory would include a provision that lease payments are subject to annual appropriation. 3 . 3 Operation and Maintenance of Parking Garage. The parties anticipate that the City will enter into an agreement with the Corporation in which the City would assume operation and maintenance of the Parking Garage. All fees and charges collected from the operation of the Parking Garage would be applied by the City to operation and maintenance costs. To the extent such fees and charges are insufficient to pay all of the operation and maintenance costs, such additional costs would be split equally between the City and the County. The parties intend to require that their respective employees who receive permits for the Parking Garage will pay a parking permit fee to help fund operation and maintenance costs of each entity. 3 . 4 Parking Space Allocations. Provisions for the initial allocation of parking spaces among the parties to serve both the needs of the general public and City and County employee needs will be addressed in the final agreements among the parties, along with provisions for an annual review of each party's parking needs and a process for reallocating spaces based on such needs. 4 . FUTURE AGREEMENTS/APPROPRIATIONS After satisfaction of the contingencies set forth in paragraph 5 below, the parties, through their designated representatives, agree in good faith to use their best efforts to timely negotiate 4 and execute agreements) and to secure the necessary annual appropriations to effectuate the financing, construction and maintenance of the Parking Garage in general conformance with the concepts set forth in this Intergovernmental Agreement. 5. CONTINGENCIES. The parties hereto shall be under no obligation to proceed as outlined in paragraph 4 above unless, prior to finalizing such agreements and appropriations, the following events shall have occurred: 5. 1 County Ballot Proposal. Approval in November of 1997 of a County ballot proposal authorizing the imposition of a sales tax to fund the construction of the Justice Center; and 5. 2 Commitments for Improvements on Block 31. Legally- binding commitments given to the DDA, the County and the City from third parties to construct private improvements on Block 31 in conjunction with the construction of the Justice Center and of sufficient value to generate One Hundred Thousand Dollars ($100, 000) in additional annual tax increment funds, which will be the source of a portion of the DDA's annual lease payment for Parking Garage space. The parties agree to work together to identify appropriate private partners to develop such improvements and to secure the binding commitments for the same. 6. EFFECTIVE DATE This Intergovernmental Agreement has been executed by the parties on the dates set forth opposite their respective signatures, and the effective date shall be the latest date. THE CITY OF FORT COLLINS, COLORADO, a municipal corporation By: Date Ann Azari, Mayor APPROVED AS TO FORM: Stephen J. Roy, City Attorney ATTEST: Wanda Rrajicek, City Clerk 5 THE COUNTY OF LARIMER, COLORADO, a political subdivision of the State of Colorado By: Date Jim Disney, Chair, Board of County Commissioners THE FORT COLLINS, COLORADO DOWNTOWN DEVELOPMENT AUTHORITY, a body corporate and politic By: Date Stephen Slezak, Chair 6