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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