HomeMy WebLinkAbout2004-074-06/15/2004-EXPRESSING COUNCIL SUPPORT FOR A PACKAGE OF FINANCIAL ASSISTANCE FOR THE 'SUMMIT FRONT RANGE' LIFEST RESOLUTION 2004-074
OF THE COUNCIL OF THE CITY OF FORT COLLINS
EXPRESSING COUNCIL SUPPORT FOR A PACKAGE OF
FINANCIAL ASSISTANCE FOR THE
"SUMMIT FRONT RANGE" LIFESTYLE SHOPPING CENTER
WHEREAS, on August 19, 2003, the City Council approved amendments to the Harmony
Corridor Standards and Guidelines and the City's Land Use Code to allow for the potential
development of a Lifestyle Shopping Center in the Harmony Corridor; and
WHEREAS, on October 16, 2003, the Planning & Zoning Board approved a project
development plan for the"Summit Front Range" (the"Lifestyle Center")at the location of Harmony
Road and Ziegler Road; and
WHEREAS, the Lifestyle Center would be a retail center with amenities and retail outlets
sufficient to attract shoppers to the Fort Collins area above and beyond those of the regional mall;
and
WHEREAS,the development of the Lifestyle Center would enable the City to better maintain
its place as the regional retail center of Northern Colorado in the face of competing retail facilities
that could otherwise draw significant retail sales revenues out of the Fort Collins community; and
WHEREAS, subsequent to the Planning&Zoning Board's approval of the Lifestyle Center,
City staff has been working with the developer of the Lifestyle Center("Bayer Properties")to discuss
ways in which the City could provide financial assistance to the Lifestyle Center that would enhance
the likelihood that the Lifestyle Center would actually be developed; and
WHEREAS,the City Council met in a study session on February 10,2004 to discuss various
strategies for retaining and improving City sales tax revenues, including the provision of possible
financial assistance to the Lifestyle Center; and
WHEREAS,an economic consultant's report has concluded that,in its first year of operation,
the Lifestyle Center would generate approximately$4.5 million worth of sales tax revenues for the
City, including approximately$1.5 million in net new revenue, which revenues would constitute a
substantial increase to the tax base of the City; and
WHEREAS, according to the study,the development of the Lifestyle Center would prevent
additional sales from leaving Fort Collins to other shopping venues in Northern Colorado and
elsewhere; and
WHEREAS, Bayer Properties estimates that it will invest over$70 million in the Lifestyle
Center, including approximately $13,240,000 for public improvements that will be necessary to
offset the impacts of the Lifestyle Center, and that will also benefit future development and the
community at large; and
WHEREAS, Bayer Properties will also pay fees and taxes related to the construction of the
Lifestyle Center in the approximate amount of$5,980,000; and
WHEREAS,in order to encourage the development of the Lifestyle Center,the City Manager
is recommending to the City Council that the Council support a package of financial assistance for
the Lifestyle Center consisting of three components: the deferral of impact fees,the sharing of new
tax revenues generated by the Lifestyle Center,and the collection of a public improvement fee to be
imposed by Bayer Properties upon the purchase of all goods and services at the Lifestyle Center
except the purchase of food; and
WHEREAS, City Council believes it to be in the best interests of the City to support the
provision of the foregoing financial assistance to the Lifestyle Center.
NOW,THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
1. That the City Council hereby expresses its support for a package of financial
assistance for the Lifestyle Center which would include the following components:
(a) The City will collect and deliver to Bayer Properties a public improvement
fee to be imposed by Bayer Properties upon the purchase of all goods and
services purchased at the Lifestyle Center except the purchase of"food," as
defined in Section 25-71 of the City Code, in an amount and for a period of
time sufficient to generate up to $8 million, which fee would be in addition
to the City's sales tax.
(b) Bayer Properties will defer the payment of up to $4.3 million in capital
improvement expansion fees,pursuant to Section 7.5-19 of the City Code,for
a period of up to five years at an interest rate that will yield a maximum
interest savings to Bayer Properties of$656,000.
(c) The City and Bayer Properties will equally share sales tax revenues generated
by the tenant businesses of the Lifestyle Center for such period of time as
may be necessary to repay Bayer Properties for$5,000,000 worth of public
improvements, or for a period of ten years, whichever first occurs, with the
understanding that: (i) the sales tax revenues shared with Bayer Properties
will include only"new" tax revenues (presently estimated at approximately
$1.5 million per year)generated by the Lifestyle Center and will not include
any sales tax revenues estimated by the City to be revenues that are
"displaced" from other, existing retail business in the City and (ii) this tax
sharing arrangement would apply only to the City's "base"tax levy of 2.25%
and would not include the sharing of any sales tax revenues earmarked for
specific purposes by City voters.
2. The foregoing financial assistance to the Lifestyle Center is expressly contingent
upon subsequent approval by the City Council of a formal agreement between the
City and Bayer Properties.
Passed and adopted at a regular meeting of the City Council held this 1 , ay of June,A.D.
2004. /�
Mayor
ATTESTn
City Clerk 14