HomeMy WebLinkAbout2013-079-09/17/2013-CONCERNING A LOAN FROM THE CITY OF FORT COLLINS TO THE FORT COLLINS URBAN RENEWAL AUTHORITY FOR THE RESOLUTION 2013-079
OF COUNCIL OF THE CITY OF FORT COLLINS
CONCERNING A LOAN FROM THE CITY OF FORT COLLINS
TO THE FORT COLLINS URBAN RENEWAL AUTHORITY
FOR THE PURPOSE OF FUNDING CERTAIN IMPROVEMENTS FOR
THE PROSPECT STATION PROJECT AND DECLARING THE
CITY COUNCIL'S PRESENT INTENT TO FUND SUCH LOAN
WHEREAS, on June 6, 1978, the City Council adopted Resolution 78-49, adopting
findings and establishing the Fort Collins Urban Renewal Authority (the"Authority") as an urban
renewal authority pursuant to Colorado Revised Statutes, Part 1 of Title 31, Article 25, as amended
(the "Act"); and
WHEREAS, by Resolution 2011-080, adopted and approved 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 Act and appropriate for an urban renewal project; and
WHEREAS, by Resolution 2011-081, adopted and approved on September 6, 2011, the
City Council adopted an urban renewal plan for the Midtown Area in Fort Collins, which area
includes the Property; and
WHEREAS, by Resolution 2013-043, adopted and approved on May 7, 2013, the City
Council adopted amendments to the previously adopted urban renewal plan for the Midtown Area
(as amended, the "Urban Renewal Plan" or the "Plan"); and
WHEREAS, the purpose of the Urban Renewal Plan is to eliminate blight and otherwise
implement and further the above-referenced Resolutions, and the purposes, policies, goals, and
objectives of the Authority and the Plan, pursuant to the Act; and
WHEREAS, Prospect Station, LLC (the "Developer") desires to construct a new
residential and commercial development with approximately 29 residential rental units and one
small retail commercial space immediately west of the Mason Trail, south of Prospect Road (the
"Project"); and
. WHEREAS, by separate action on this date, the Board of Commissioners of the URA (the
'Board"), by the adoption of Resolution No. 061, will consider whether providing financial
assistance to the Developer for the Project is in the best interests of the URA and serves important
public purposes within the plan area, including the promotion, retention and expansion of local
businesses; improving the property and sales tax base; enhancing and building public
infrastructure; eliminating blight; and otherwise furthering and implementing the purposes, goals,
and objectives of the Plan; and
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WHEREAS, pursuant to Resolution No. 061, the Board will consider authorization of
Redevelopment Agreement for the reimbursement of certain redevelopment costs required for
completion of the Project (the "Agreement"); and
WHEREAS, the total cost of the Project is expected to be approximately $5.9 million and
the cost of the activities and improvements to be funded by the URA is capped at$ 494,000, half of
which ($247,000) will be paid upon completion of the determination of the eligible costs for
reimbursement(the"Initial Reimbursement"), and the other half of which ($247,000) will be paid
over time from the tax increment revenues expected to be generated by the Project; and
WHEREAS, the URA must borrow funds to pay for the Initial Reimbursement until it is
able to use the additional increment of property tax generated by the Developer's Project to issue a
bond or obtain other financing; and
WHEREAS, the City Council wishes to.state its present intent to authorize a loan to the
URA to fund the Initial Reimbursement, as more specifically provided herein; and
WHEREAS, upon completion of the Project and a determination of the final amount of the
reimbursement to the Developer under the Agreement, the City Council intends to lend to the
URA, subject to appropriation of funds for such purpose, and the execution of a loan agreement
(the "Loan Agreement') and promissory note ("Note") appropriate to evidence the URA's
obligation for repayment, the amount of the Initial Reimbursement (the "Loan"); and
WHEREAS, the interest rate and payment schedule for the Loan will be set by the City's
Financial Officer in accordance with the City Council approved policy for interfund loans in effect
at the time of the Loan; and
WHEREAS, the City is authorized by Section 31-25-105 of the Colorado Revised Statutes
to borrow money in such amounts as may be needed to meet its purposes; and
WHEREAS, the City Council believes that the Loan is in the best interests of the City and
the URA and will promote the mutual purposes of the City and the URA.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE FORT
COLLINS as follows:
Section 1. The City Council hereby finds and determines, pursuant to the Constitution,
the laws of the State and the City's Charter, and in accordance with the foregoing recitals, that
adopting this Resolution, entering into the Loan Agreement, and facilitating the provision by the
Authority of support for the Project in the form of the Initial Reimbursement are necessary,
convenient, and in furtherance of the City's purposes and are in the best interests of the inhabitants
of the City; and will serve the important public purpose of facilitating the elimination and
prevention of blight and the redevelopment of property within the Midtown Area.
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Section 2. The City Council hereby authorizes and directs the City Manager, upon request
of the URA for the Loan, in consultation with the Financial Officer and the City Attorney, to
prepare a Loan Agreement and Note consistent with the terms of the Resolution and the City
Council-adopted policy for interfund loans. Said Loan Agreement and Note shall include a
payment schedule for the remaining tern of the tax increment revenues to be received by the URA
from the Project, and a provision for repayment in the event the URA issues bonds for which said
revenues are to be pledged.
Section '). Provided that funds necessary for the Loan have been appropriated by the City
Council, the City Manager is hereby authorized to execute said Loan Agreement and, upon
execution of the Loan Agreement and Note by the URA Executive Director, the City Manager is
further authorized to make the Loan to the URA in accordance with the terms and conditions set
forth in the Loan Agreement and this Resolution.
Section 4. This Resolution shall not create a general obligation or other indebtedness or
multiple fiscal year direct or indirect debt or other financial obligation of the City within the
meaning of its Home Rule Charter or any constitutional debt limitation, including Article X,
Section 20 of the Colorado,Constitution. .
Section 5. The actions set forth in this Resolution are contingent upon the approval by the
Board of Board Resolution No. 061, authorizing the Agreement and the Loan, consistent with this
Resolution.
Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 17th
day of September, A.D. 2013.
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