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
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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.
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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
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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
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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
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