HomeMy WebLinkAbout2013-045-05/07/2013-REGARDING THE REDEVELOPMENT OF FOOTHILLS MALL AND REGARDING COOPERATION AND PARTNERSHIP WITH LARIMER RESOLUTION 2013-045
OF THE COUNCIL OF THE CITY OF FORT COLLINS
REGARDING THE REDEVELOPMENT OF FOOTHILLS MALL
AND REGARDING COOPERATION AND PARTNERSHIP WITH LARIMER COUNTY
ON ECONOMIC REVITALIZATION EFFORTS AND
THE USE OF TAX INCREMENT FINANCING
WHEREAS, on June 6, 1978, the Council of the City of Fort Collins ("City Council')
adopted Resolution 1978-49, adopting findings and establishing a Fort Collins Urban Renewal
Authority(the "Authority"); and
WHEREAS, by Resolution 2011-080, which was adopted on September 6, 2011, the City
Council found and declared that the area described in such resolution (the "Midtown Area") is a
blighted area as described in the Colorado Urban Renewal Law, Sections 31-25-101, et seq.,
C.R.S. (the "Act") and is appropriate for an urban renewal project; and
WHEREAS, by Resolution 2011-081, which was adopted on September 6, 2011, the City
Council approved an urban renewal plan for the Midtown Area in Fort Collins (the "Urban
Renewal Plan"), which area includes an existing shopping mall in Fort Collins known as the
Foothills Mall (also referred to as "the "Mall'); and
WHEREAS, Walton Foothills Holdings VI, L.L.C., (the "Mall Owner") has obtained
certain development approvals from the City, and is making final plans and financial arrangements
to proceed with the redevelopment of the Mall, and has submitted a proposal to the City and the
Authority to redevelop the Mall by constructing approximately 735,000 square feet of commercial
development and up to 800 multifamily residential units, together with related amenities and uses
(the "Project'); and
WHEREAS, the City Council has determined that it is in the best interests of the City and
its citizens to assist in the redevelopment of the Mall, in order to remedy blighted conditions within
and around the Mall pursuant to the Urban Renewal Plan, using property and sales tax increment
revenues, together with other public financing tools, to provide a catalyst for redevelopment in the
Midtown Area, increase sales tax revenues and job opportunities, and provide other economic and
social benefits to the City and surrounding community; and
WHEREAS, the City, the Authority, the Foothills Metropolitan District (the "District'),
and the Mall Owner have negotiated certain terms and conditions related to the financing,
construction and operation of the Mall that provide for issuance by the District of bonds (the
"District Bonds") to provide reimbursement for the construction of certain public improvements
(the "Public Improvements"), and the pledge of Authority real property tax increment revenues
and certain City sales tax increment revenues in support of the District Bonds; and
WHEREAS, such terms and conditions are outlined in a Redevelopment and
Reimbursement Agreement (the "Agreement'), which has been approved on this date by the City
Council with the adoption of Resolution 2013-042; and
-1-
WHEREAS, accordingly, the City Council has on this date also approved Resolution
2013-043, approving amendments to the Urban Renewal Plan to provide for the division of
property and sales taxes generated on the Mall property, which would generate tax increment
revenues and allow the City and Authority to carry out its obligations under the Agreement; and
WHEREAS, representatives of the City and Larimer County (the "County") have been
engaged for several months in a discussion of the potential impacts to the County of the use by the
City and the Authority of tax increment financing pursuant to the Act("TIF"), and in particular for
the Mall Project; and
WHEREAS, in those discussions,the County has acknowledged that the redevelopment of
the Mall is important to the County because of the public benefits that will result, including an
increase in community investment and general property values and economic health, the presence
of a new, premier regional shopping and entertainment center, and related increase in civic pride
and general welfare; and
WHEREAS,the City Council recognizes that property tax revenues are the primary source
of funding for the County and other taxing entities, and that the use of TIF in residential and
commercial projects can have a negative impact on their ability to provide adequate infrastructure
and services to such projects and to other areas; and
WHEREAS, the City Council further recognizes that it is important to consider property
tax revenue impacts in light of the increasing fiscal pressures experienced by the County and other
local taxing entities, and the reductions in cash flow expected to result from the expiration of
specific taxes such as the County's jail tax; and
WHEREAS, as a consequence of the potential for impacts to the County and other taxing
entities, the City Council has determined that the evaluation of impacts to property tax funding for
infrastructure and services from redevelopment using TIF is a critical factor that the City should
take into consideration in reviewing and approving urban renewal plans and establishing TIF
districts; and
WHEREAS, in order to appropriately evaluate the relative financial benefits and costs and
other impacts for the City and the County related to development, redevelopment and annexation
of areas, and how those impacts could or should be distributed or shared, a more holistic and
broader analysis of those impacts is required; and
WHEREAS,the City Council wishes to work cooperatively with the Authority, the County
and, to the extent practicable, other municipalities and taxing entities in the County, to develop
improved methods for evaluating such potential impacts as the basis for discussing and developing
agreements under which the City and County may in the future work in partnership to plan,
support and appropriately finance economic revitalization efforts, annexations and other
undertakings; and
WHEREAS, Article 11, Section 16 of the City Charter empowers the City Council of the
City, by ordinance or resolution, to enter into contracts with other governmental bodies to furnish
-2-
governmental services and make charges for such services or enter into cooperative or joint
activities with other governmental bodies.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FORT COLLINS, COLORADO, AS FOLLOWS:
Section 1. It is the intent of the City Council, in light of the significant residential
portion of the Foothills Mall redevelopment, that the City will remit to the County an amount equal
to fifty percent (50%) of the real property tax increment generated from the residential units that
are within the Foothills Mall Project, in each year that those funds are available, after payment of
debt service requirements for the District Bonds, subject to annual appropriation of funds for such
payment. The City Council hereby authorizes the Mayor to execute an intergovernmental
agreement in a form determined by the City Manager, in consultation with the City Attorney, to
carry out the intended purposes of this Section, consistent with the terms of this Resolution.
Section 2. The City Council hereby directs the City Manager to work with the
Authority and the County to develop an agreement through which the City and the Authority will
agree to remit to the County annually the amount of$60,000 from property tax increment received
by the Authority from the Foothills Mall Tax Increment District. This amount is intended to
represent the County's share of the personal property tax increment paid from the Foothills Mall
Tax Increment District. Said agreement may include such other implementation and administrative
provisions as the City Manager and Executive Director determines to be necessary or appropriate.
The City Council hereby authorizes the Mayor to execute said intergovernmental agreement in a
form determined by the City Manager, in consultation with the City Attorney, to carry out the
intended purposes of this Section, consistent with the terms of this Resolution.
Section 3. The City Council hereby directs the City Manager to work cooperatively
with the County and, to the extent practicable, with other municipalities and affected property tax
levying entities in the County, to develop an appropriate fiscal impact analysis model for
evaluating financial impacts associated with the formation of tax increment financing districts, the
redevelopment of lands within the city, and the annexation of property into the city, including but
not limited to an the analysis of cost of service and revenue implications for both the City and the
County, and for other affected taxing entities. In addition:
(a) The City Manager is authorized to prepare such agreements as may be
necessary to retain the services of a mutually acceptable outside expert to
develop the described model for evaluating fiscal impacts, which may include
sharing of costs for the work. It is the Council's intent that work on this
project will be undertaken no later than July 1, 2013, and will be completed no
later than December 15, 2013.
(b) The City Council hereby authorizes the Mayor to execute an intergovernmental
agreement documenting the arrangements for this work in a form determined
by the City Manager, in consultation with the City Attorney, to carry out the
intended purposes of this Resolution.
-3-
Section 4. Upon completion of the modeling and updated fiscal impact analysis of the
Foothills Mall TIF on County infrastructure and services using the tools developed pursuant to
Section 3, it is the City Council's intent that the City Manager will conduct an updated review of
the financial arrangements described above to offset impacts to the County, and will propose for
Council consideration such additional financial support to the County, if any, as he determines to
be appropriate.
Section 5. The City Council hereby directs the City Manager to develop a plan for
convening a discussion between City and County representatives of the relative financial benefits
and costs and other impacts to the City and the County related to development,redevelopment and
annexation of areas, and how those impacts should be distributed or shared,based upon the holistic
analysis of those impacts resulting from the work described in Section 3, above. The City
Manager shall present such plan to the City Council for further discussion and possible Council
action.
Passed and adopted at a regular meeting of the Council of the City of Fort Collins convened
on the 7th day of May A.D. 2013.
Mayor Pro Tem
ATTEST: fi
Opp
0
"CW iqd�
U0 .
City Clerk
-4-