HomeMy WebLinkAbout2017-062-07/05/2017-AUTHORIZING THE CITY MANAGER TO EXECUTE AN INTERGOVERNMENTAL AGREEMENT WITH THE DOWNTOWN DEVELOPMENT RESOLUTION 2017-062
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE CITY MANAGER TO EXECUTE AN INTERGOVERNMENTAL
AGREEMENT WITH THE DOWNTOWN DEVELOPMENT AUTHORITY REGARDING
CONTRIBUTIONS TO THE CITY FOR PUBLIC PARKING SPACES AND PARKING
PROGRAMS IN DOWNTOWN FORT COLLINS
WHEREAS, the City of Fort Collins, Colorado (the "City") is a duly organized and
existing home rule municipality of the State of Colorado, created and operating pursuant to
Article XX of the Constitution of the State of Colorado and the home rule charter of the City (the
"Charter"); and
WHEREAS, the City is authorized by Article 11, Section 16 of the Charter and C.R.S.§
29-1-203 to enter into agreements with other governmental entities to cooperate in providing
public services and facilities authorized to be provided by the City and the other governmental
entity and to share the costs of providing such services and facilities; and
WHEREAS, the City's Parking Plan approved by the City Council with the adoption of
Resolution 2013-002, dated January 15, 2013, projects that an additional nine hundred (900) off-
site public parking spaces will be needed by 2023, with a potential need for an additional six
hundred (600) such spaces within the same timeframe, so having adequate parking in the City's
downtown area is a substantial concern for the City; and
WHEREAS, in light of this concern, the City has taken steps to acquire approximately
216 parking spaces in a parking facility that is being constructed by Bohemian Companies in
connection with a hotel development project in downtown Fort Collins and to use these spaces
for public parking (the "Public Parking Spaces"); and
WHEREAS, the City will finance the acquisition of the Public Parking Spaces by
entering into a lease-lease back transaction which will provide the funds to purchase the Public
Parking Spaces (the "Lease Financing"); and
WHEREAS, it is expected that the Public Parking Spaces will be completed sometime in
August 2017 and the City will acquire ownership of them within thirty days after such
completion; and
WHEREAS, maintaining adequate levels of public parking within its boundaries is also a
matter of substantial concern for the Fort Collins Downtown Development Authority (the
"DDA") and the City; and
WHEREAS, pursuant to C.R.S. 31-25-807(2)(d), the Board of Directors of the DDA (the
"DDA Board") has the power to plan and propose public facilities within the boundaries of the
DDA and, in accordance with C.R.S. 31-25-802(8), public facilities specifically include parking
facilities; and
WHEREAS, the DDA Plan of Development, approved and adopted by the City Council
with its adoption of Resolution 1981-129 on September 8, 1981, identifies maintaining adequate
levels of parking as a purpose and objective of the DDA, and provides as a plan of development
project the creation of a "parking program to provide sufficient public parking to service all
occupants and owners within the DDA's boundaries including, but not limited to, 'the
following...construction of parking garages and lots concentrating on areas of present parking
deficiencies and such areas as may require parking facilities in connection with projects
undertaken hereafter"; and
WHEREAS, the City's acquisition cost for the Public Parking Spaces will be
approximately $8,430,000; and
WHEREAS, the availability of the Public Parking Spaces will provide a substantial
benefit to the DDA and the DDA has agreed to make contributions in thirteen annual
installments to the City totaling $3,900,000 to defray the City's Lease Financing costs to acquire
the Public Parking Spaces; and
WHEREAS, to evidence DDA's agreement to provide the City with this additional
funding for the City's payment of the Lease Financing, the City and DDA desire to enter into the
"Intergovernmental Agreement Regarding DDA Contributions to the City Public Parking Spaces
and Parking Programs in Downtown Fort Collins" attached hereto as Exhibit "A" and
incorporated herein by reference (the "IGA"); and
WHEREAS, the City Council hereby finds that entering into the IGA will be in the best
interest of the City and its residents and is necessary for the public's health, safety and welfare.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. That the City Council hereby makes and adopts the determinations and
findings contained in the recitals set forth above.
Section 2. That the IGA is hereby approved and the City Manager is hereby
authorized to execute the IGA in substantially the form attached hereto as Exhibit"A," with such
modifications and additions as the City Manager, in consultation with the City Attorney,
determines to be necessary and appropriate to protect the interests of the City or effectuate the
purposes set forth herein and not otherwise inconsistent with this Resolution.
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Passed and adopted at a rear meeting of the Council of the City of Fort Collins this 5th
day of July, A.D. 2017. o�FORrco�
SEAL
Mayor
ATTEST: �oioiiaoo
li(/ lit/ vet-e�"
City Clerk
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EXHIBIT A
INTERGOVERNMENTAL AGREEMENT
REGARDING DDA CONTRIBUTIONS TO THE CITY FOR PUBLIC PARKING SPACES
AND PARKING PROGRAMS IN DOWNTOWN FORT COLLINS
THIS INTERGOVERNMENTAL AGREEMENT ("IGA") is made and entered into on
the'date set forth below by and between the FORT COLLINS, COLORADO, DOWNTOWN
DEVELOPMENT AUTHORITY, a body corporate and politic (the "DDA"), and the CITY OF
FORT COLLINS, COLORADO, a municipal corporation (the"City").
WHEREAS, maintaining adequate levels of public parking within the boundaries of the
DDA (the "DDA District") is a matter of substantial concern to the DDA and the City;
WHEREAS, pursuant to C.R.S. 31-25-807(2)(d) the Board of Directors of the DDA (the
"DDA Board") has the power to plan and propose public facilities within the DDA District and,
in accordance with C.R.S. 31-25-802(8), public facilities,specifically include parking facilities;
WHEREAS, the DDA Plan of Development, approved on September 8, 1981, identifies
maintaining adequate levels of parking as a purpose and objective of the DDA,'and provides as a
plan of development project the creation of a "parking program to provide sufficient public
parking to service all occupants and owners within the [DDA] District including, but not limited
to, the following...construction of parking garages and lots concentrating on areas of present
parking deficiencies and such areas as may require parking facilities in connection with projects
undertaken hereafter";
WHEREAS, the City's Parking Plan, dated January 15, 2013, projects that an additional
nine hundred (900) off-site public parking spaces will be needed by 2023, with a potential need
for an additional six hundred (600) such spaces within the same timeframe;
WHEREAS, the Bohemian Companies, McWhinney Enterprises and Sage Hospitality
(the "Developers") are currently constructing a hotel in Downtown Fort Collins at 363 Jefferson
Street and, in connection therewith, a parking structure adjacent to the hotel containing
approximately three hundred thirty-five (335) parking spaces (the "Parking Structure");
WHEREAS, the City and the Developers have entered into a public/private partnership
regarding the Parking Structure pursuant to which the City has agreed to purchase an
approximately sixty-four percent (64%) interest in the Parking Structure (the "Ownership
Interest"), which will enable the City to utilize approximately two hundred sixteen (216) of the
parking spaces as public parking spaces (the "Public Parking Spaces");
WHEREAS, it is expected that the Parking Structure will be completed sometime in
August 2017 and the City will acquire the Ownership Interest within thirty (30) days after such
completion;
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WHEREAS, the estimated cost to construct the Parking Structure is twelve million four
hundred thousand dollars ($12,400,000), with the City's estimated acquisition cost of the
Ownership Interest being eight million three hundred thousand dollars ($8,300,000);
WHEREAS, the availability of the Public Parking Spaces will provide a substantial
benefit to the DDA District and the DDA desires to make contributions to the City totaling Three
Million Nine Hundred Thousand Dollars ($3,900,000) to defray the costs incurred by the City in
acquiring the Ownership Interest and in creating and implementing certain parking programs
providing additional benefits to the DDA District, in return for certain commitments from the
City regarding the Public Parking Spaces and such parking programs;
WHEREAS, pursuant to C.R.S. §31-25-808(g), the DDA is empowered to make
contributions, grants, and loans to the City which advance the statutory mission of the DDA; and
WHEREAS, contributing funds to the City for the purposes described herein will
advance the statutory mission of the DDA and the DDA's Plan of Development and will serve
the purposes of the City's Parking Plan. ,
NOW, THEREFORE, in consideration of the mutual promises and other good and
valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties
hereto agree as follows:
1. Term. This IGA shall commence upon execution and continue through December
31, 2031.
2. DDA Contributions. Subject to the condition's and limitations contained in
Sections 3 and 4 below, the DDA agrees to contribute to the City the maximum sum of Three
Million Nine Hundred Thousand Dollars ($3,900,000), payable in thirteen (13) annual
installments of Three Hundred Thousand Dollars ($300,000), with the first such installment
being due on December 1, 2019, and the final installment being due on December 1, 2031
("Annual DDA Contribution(s)"), to be used by the City exclusively for the following purposes:
A. Servicing of the debt incurred by the City for its acquisition of the Ownership
Interest in the Parking Structure, up to a maximum amount of Two Million
Seven Hundred Thousand Dollars ($2,700,000); and
B. For the lease or purchase of real property (or an interest therein), or capital
improvements to such property, that are directly linked to the creation and
operation of a transportation demand management system providing permit
parking in close proximity to MAX Bus Rapid Transit ("Max") station areas
for employees of businesses located within the DDA District, thereby
allowing such employees to park their vehicles and ride Max to Downtown
Fort Collins rather than utilizing public parking spaces in the Downtown Fort
Collins area(the "TDM Program").
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3. Conditions on DDA Contributions. The DDA's obligation to make, and the
City's right to retain, Annual DDA Contributions are subject to the following terms and
conditions:
A. The City must acquire the Ownership Interest in the Parking Structure prior to
December 1, 2019, or payment of Annual DDA Contributions shall not
commence until such time as the City acquires such interest;
B. The City shall use Annual DDA Contributions only for the purposes identified
in Section 2 above; any Annual DDA Contribution, or part thereof, not
expended by the City for such purposes shall be promptly returned to the
DDA;
C. At least one hundred (100)of the Public Parking Spaces shall remain available
for use by the general public on a first-come, first-served basis throughout the
term of this IGA;
D. If the DDA is not obligated under this IGA to make an Annual DDA
Contribution on December I of any given year during the term hereof,
including, by way of example and not of limitation, due to the City's failure to
acquire the Ownership Interest in the Parking Structure prior to December 1,
2019 (as required by Section 1 above) or the unavailability of the Line of
Credit (as defined in Section 4 below), then the DDA's obligation to make
such Annual DDA Contribution in such year shall be deemed waived; and
E. All financial obligations of the DDA arising under this IGA that are payable
after the current fiscal year are contingent upon funds for that purpose being
annually appropriated, budgeted and otherwise made available by the DDA
Board, in its discretion, and the City Council of the City, in its discretion.
4. Source of DDA Funds. The parties hereto agree that Annual DDA Contributions
shall be made from the DDA's revolving line of credit through First National Bank of Omaha
which was established by the intergovernmental agreement between the DDA and the City
entitled "Intergovernmental Agreement Governing a Line of Credit for Financing Downtown
Development Authority Projects and Programs" dated October 15, 2012, or other annual
revolving line of credit established pursuant to the terms of said intergovernmental agreement
(the "Line of Credit"). The DDA's obligation to make Annual DDA Contributions is expressly
contingent upon the continued availability of the Line of Credit. In the event the Line of Credit is
no longer available to the DDA due to termination, expiration or for any other reason, the DDA
shall have no obligation to make any Annual DDA Contribution due subsequent to the date the
DDA lost access to the Line of Credit.
5. City's Commitment to TDM Program. In consideration of the Annual DDA
Contributions, the City agrees that it will in good faith work to expedite the creation and
implementation of the TDM Program, and in connection therewith, consult and collaborate with
the DDA on the same.
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6. Accounting. Upon written request of the DDA, the City shall provide to the DDA
documentation sufficient for the DDA to determine that Annual DDA Contributions were
expended by the City in a manner consistent with this IGA.
7. Notice. All notices to be given to parties hereunder shall be in writing and shall
be sent by certified mail to the addresses specified below:
DDA: Downtown Development Authority
Attn: Executive Director
19 Old Town Square, Suite 230
Fort Collins, CO 80524
With a copy to: Liley Law Offices, LLC
Attn: Lucia A. Liley, Esq.
419 Canyon Avenue, Suite 220
Fort Collins, CO 80521
CITY: City of Fort Collins
Attn: City Manager
215 N. Mason Street
Fort Collins, CO 80521
With a copy to: City of Fort Collins
Attn: City Attorney
300 LaPorte Avenue
Fort Collins, CO 80521
8. Governing Law. This IGA shall be governed by, and its terms construed under,
the laws of the State of Colorado.
9. No Third Party Beneficiaries. It is the mutual intent of the parties hereto that this
IGA shall inure to the benefit of only the parties hereto. Accordingly, nothing in this IGA shall
be construed as creating any right or entitlement which inures to the benefit of any third party.
10. Enforceability. The parties hereto recognize that there are legal constraints
imposed upon them by the constitution, statutes, and rules and regulations of the State of
Colorado and of the United States, and imposed upon them by their respective governing
statutes, charters, ordinances, rules and regulations, and that, subject to such constraints, the
parties intend to carry out the terms and conditions of this IGA. Nothing herein to the contrary
Withstanding, in no event shall either of the parties be obligated hereunder to exercise any power
or take any action that is be prohibited by applicable law. Whenever possible, each provision of
this IGA shall be interpreted in such a manner so as to be effective and valid under applicable
law.
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IN WITNESS WHEREOF, the parties hereto have executed this IGA the day and year of
the last signature below written.
THE FORT COLLINS, COLORADO,
DOWNTOWN DEVELOPMENT
AUTHORITY, a body corporate and politic.
By:
Justin Larson, Chairperson
Date:
ATTEST:
Cheryl Zimlich, Secretary
THE CITY OF FORT COLLINS,
COLORADO, a municipal corporation
By:
Darin Atteberry, City Manager
Date:
APPROVED AS TO FORM:
Deputy City Attorney
ATTEST:
Wanda Winkelmann, City Clerk
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