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Home My WebLink About2018-046-05/15/2018-APPROVING AN INTERGOVERNMENTAL AGREEMENT BETWEEN THE CITY AND DOWNTOWN DEVELOPMENT AUTHORITY GOVERNI1 SECOND INTERGOVERNMENTAL AGREEMENT GOVERNING A LINE OF CREDIT FOR FINANCING DOWNTOWN DEVELOPMENT AUTHORITY PROJECTS AND PROGRAMS This INTERGOVERNMENTAL AGREEMENT (“IGA”) is entered into this _____ day of _______________, 2018, 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 Colorado municipal corporation (the “City”). WITNESSETH: WHEREAS, the DDA has been created pursuant to the provisions of Title 31, Article 25, part 8, Colorado Revised Statutes, and Chapter 2, Article IV, Division 1 of the City Code (the “DDA Statute”); and WHEREAS, the DDA Statute has declared that the organization of downtown development authorities will serve a public use; promote the health, safety, prosperity, security, and general welfare of the inhabitants thereof and of the people of this state; will halt or prevent deterioration of property values or structures within central business districts; halt or prevent the growth of blighted areas within such district, and assist municipalities in the development and redevelopment of downtowns and in the overall planning to restore or provide for the continuance of the health thereof; and WHEREAS, the DDA provides an invaluable service to the City by promoting the health, safety, prosperity, security and general welfare of those living and working within its boundaries; and WHEREAS, pursuant to C.R.S. §31-25-808(1)(f), the DDA is empowered to enter into contracts with governmental agencies and public bodies in furtherance of the statutory mission of the DDA; and WHEREAS, Article II, 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 governmental services and make charges for such services or enter into cooperative or joint activities with other governmental bodies; and WHEREAS, the primary means of financing DDA projects and programs is through the use of property tax increment collected within the DDA boundaries, and C.R.S. §31-25- 807(3)(a)(II) requires that the City incur some form of debt in order to finance such projects and programs using property tax increment revenues collected within the DDA boundaries; and WHEREAS, a line of credit established by the City with a financial institution meets the requirements of C.R.S. §31-25-807(3)(a)(II), and the costs and interest associated with such a line of credit are much lower that would be the case with other types of financing; and EXHIBIT A 2 WHEREAS, it is in the best interests of both the DDA and the City to reduce financing costs of DDA projects and programs in order to preserve the maximum amount of property tax increment revenues for DDA projects and programs within its boundaries; and WHEREAS, on October 15, 2012, the parties entered in that certain agreement entitled “Intergovernmental Agreement Governing a Line of Credit for Financing Downtown Development Authority Projects and Programs” which established a line of credit to finance certain DDA projects and programs and defined the process for use of such line of credit (the “2012 IGA”); and WHEREAS, the term of the 2012 IGA is for six (6) years, expiring December 31, 2018; and WHEREAS, the parties desire to enter into this IGA for the purpose of extending the Line of Credit established in the 2012 IGA for an additional six (6) years, with an increased per- draw limit of Five Million Dollars ($5,000,000), on the same general terms and conditions contained in the 2012 IGA. NOW, THEREFORE, in consideration of the mutual covenants and promises of the parties as hereafter provided and other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the parties agree as follows: 1. TERM. The term of this IGA shall commence upon execution by the parties and continue through December 31, 2024 (“Term”), unless earlier terminated by mutual agreement. 2. LINE OF CREDIT. Attached hereto as Exhibit A, and incorporated herein by reference, is a copy of the Promissory Note and Agreement (the “LOC Agreement”) between the City and First National Bank of Omaha (“First National Bank”) establishing an annual revolving line of credit, renewable each fiscal year of the Term for the benefit of the City on behalf of the DDA, and which, in addition to other terms and conditions for its use, provides for a maximum per-draw limit of Five Million Dollars ($5,000,000) (the “Line of Credit”). The City Council on ______________ adopted Ordinance No, ____, 2018 on second reading approving the LOC Agreement and authorizing the Chief Financial Officer to execute the LOC Agreement. The City shall execute the LOC Agreement and shall take such other actions as may be necessary to have the Line of Credit available for draw no later than January 1, 2019. 3. REQUIREMENTS FOR DRAWS ON LINE OF CREDIT. Any draw on the Line of Credit by the City during the Term shall be in accordance with all of the following requirements: 3 3.1 The DDA Board shall annually adopt a resolution approving its budget and shall adopt a resolution recommending the City Council of the City appropriate DDA monies to fund the DDA budget; and 3.2 The City Council of the City shall annually approve the DDA budget and by ordinance appropriate funds therefor, including funds for debt service for the Line of Credit and expenditure of the Line of Credit proceeds, as applicable; and 3.3 Any draw on the Line of Credit shall be used only to pay the costs of DDA projects and programs approved in the annual DDA budget and for which funds have been appropriated by the City; and 3.4 The sequence of steps for drawing on the line of credit shall be as depicted in the flowchart contained in Exhibit B, attached hereto and incorporated herein by reference; and 3.5 Prior to any draw on the Line of Credit, the DDA’s Executive Director shall determine and report to the City’s Chief Financial Officer the current level of total debt that has at that time been issued under the existing voter authorization for DDA debt and further shall verify and report to the City’s Chief Financial Officer that there are sufficient tax increment monies in the DDA’s Debt Service Fund to replenish the Line of Credit in the amount of the draw and the interest cost. The DDA’s Executive Director shall supply the City’s Chief Financial Officer with documentation supporting such determinations and reporting, with examples of the documentation to be supplied being depicted in Exhibits C-1 through C-6, attached hereto and incorporated herein by reference. The City’s Chief Financial Officer shall review such information and documentation reported, and shall make no draw on the Line of Credit in excess of such available debt authorization or such available tax increment monies; and 3.6 The City’s Chief Financial Officer shall have the authority to request any draw on the Line of Credit consistent with the LOC Agreement, upon written request by the DDA’s Executive Director; and 3.7 Upon receipt of funds from First National Bank, the City’s Chief Financial Officer shall cause the proceeds from the related Line of Credit draw to be available to the DDA; and 3.8 At the time of a draw request, the City’s Chief Financial Officer will initiate such action as is necessary to repay the draw using funds from the DDA’s Debt Service Fund within seven (7) working days of receipt of the draw, such that the Line of Credit is fully replenished to its Five Million Dollars ($5,000,000) limit of available credit within seven (7) working days of receipt of each such draw. 4. EARLY TERMINATION In the event that for any reason the Line of Credit is terminated, the parties agree that they will work together in good faith to secure another line of credit that meets the purposes of this IGA, subject to such City Council and DDA Board approval as may be required. In 4 such event, any such new letter of credit shall be subject to the provisions of, but shall not require an amendment to, this IGA. 5. 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: Lucia A. Liley, Esq. Liley Law Offices 419 Canyon Avenue, Suite 220 Fort Collins, CO 80521 CITY: City of Fort Collins Attn: Chief Financial Officer 215 North Manson Street Fort Collins, CO 80524 With a copy to: City of Fort Collins Attn: City Attorney 300 LaPorte Avenue Fort Collins, CO 80521 6. THIRD PARTY BENEFICIARIES. This IGA shall not be construed as or deemed to be an agreement for the benefit of any third party or parties, and no third party or parties shall have any right of action hereunder for any cause whatsoever. 7. GOVERNING LAW/SEVERABILITY. The laws of the State of Colorado shall govern the construction, interpretation, execution and enforcement of this IGA. In the event any provision of this IGA shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision of this IGA. 8. 2012 IGA. The parties agree that this IGA shall not supersede the 2012 IGA. The 2012 IGA shall remain in full force and effect until expiration or termination, as provided for therein. 5 IN WITNESS WHEREOF, the parties have executed this IGA the day and year first above written. CITY OF FORT COLLINS, COLORADO, a Colorado municipal corporation By: ____________________________________ Darin A. 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ZĞƐĞƌǀĞƐ ZĞƐƚƌŝĐƚĞĚͲZĞƋƵŝƌĞĚďǇ'tĂŶŬĨŽƌŽŶĚ ϭ͕ϮϱϬ͕ϬϬϬ ϭ͕ϮϱϬ͕ϬϬϬ ϭ͕ϮϱϬ͕ϬϬϬ ϭ͕ϮϱϬ͕ϬϬϬ ϬϬϬϬϬ DƵůƚŝͲǇĞĂƌZĞŝŵďƵƌƐĞŵĞŶƚƐ;ϱ͘ϱйͿ Ϯϯ͕ϭϮϲ ϯϰ͕ϲϮϮ ϰϭ͕ϰϲϮ ϰϯ͕ϵϯϳ ϰϮ͕ϰϳϱ ϯϱ͕ϮϮϳ ϯϱ͕ϮϮϳ ϯϯ͕ϬϮϳ Ϯϴ͕ϴϱϰ ŽŵŵŝƚƚĞĚͲ,ĂůĨŽĨEĞǆƚzĞĂƌŽŵŵŝƚŵĞŶƚƐ Ϯϳϲ͕ϳϬϳ ϭϯϲ͕ϰϱϳ ϭϱϬ͕Ϭϳϱ ϭϱϬ͕Ϭϳϱ ϭϱϬ͕Ϭϳϱ ϭϱϬ͕Ϭϳϱ ϭϱϬ͕Ϭϳϱ ϭϱϬ͕Ϭϳϱ ϭϱϬ͕Ϭϳϱ ZĞƐĞƌǀĞƐdŽƚĂů ϭ͕ϱϰϵ͕ϴϯϯ ϭ͕ϰϮϭ͕Ϭϳϵ ϭ͕ϰϰϭ͕ϱϯϳ ĂůĂŶĐĞͲhŶĐŽŵŵŝƚƚĞĚĨŽƌĨŽůůŽǁŝŶŐǇĞĂƌ ϭϮ͕ϰϯϭ ;ϰϯ͕ϬϱϱͿ ;ϬͿ Ϭ Ϭ ;ϬͿ Ϭ ;ϬͿ ;ϬͿ &ƵŶĚĂůĂŶĐĞ ϭ͕ϱϲϮ͕Ϯϲϰ ϭ͕ϯϳϴ͕ϬϮϱ ϭ͕ϰϰϭ͕ϱϯϳ EKd^͗ ϮϬϭϬŽŶĚ ΨϭϮ͕ϱϬϬ͕ϬϬϬďŽŶĚͲϭϬǇĞĂƌͲϯ͘ϵϬй;dͿĂŶĚϱ͘ϭϳй;dͿŝŶƚĞƌĞƐƚͲŝŶƚĞƌĞƐƚŽŶůǇƵŶƚŝůĞĐĞŵďĞƌϮϬϭϮ tŽŽĚǁĂƌĚŽŶĚ Ψϲ͕ϬϱϬ͕ϬϬϬďŽŶĚͲƵƌƌĞŶƚƌĂƚĞŽĨ͘Ϯϱй͕ƌĞƐĞƚĞĂĐŚ^ĞƉƚĞŵďĞƌϮϲƚŚĂŶŶŝǀĞƌƐĂƌǇ ƵĚŐĞƚzĞĂƌϮϬϭϴƚŚƌŽƵŐŚϮϬϮϰ WƌŽǀŝĚĞĚďǇƚŚĞŽƵŶƚǇ ƵĚŐĞƚzĞĂƌϮϬϭϵƚŚƌŽƵŐŚϮϬϮϰ ,ŝƐƚŽƌŝĐĂůŐƌŽǁƚŚĂǀĞƌĂŐĞŽĨϱ͘ϴйŝŶƐƐĞƐƐĞĚsĂůƵĞ >ĞŐĞŶĚ WƌŽũĞĐƚĞĚWƌŽƉĞƌƚǇdĂǆZĞǀĞŶƵĞ ŽĂƌĚDĞĞƚŝŶŐ͕&ĞďƌƵĂƌǇϴ͕ϮϬϭϴ ŽǁŶƚŽǁŶĞǀĞůŽƉŵĞŶƚƵƚŚŽƌŝƚǇdĂǆ/ŶĐƌĞŵĞŶƚĂƐŚ&ůŽǁ^ƚĂƚĞŵĞŶƚ dĂǆ/ŶĐƌĞŵĞŶƚZĞǀĞŶƵĞ WƌŽũĞĐƚĞĚ:ĞĨĨĞƌƐŽŶ^ƚ͘'ĂƌĂŐĞ WƌŽũĞĐƚĞĚƉƉƌŽǀĂůŽĨŽŶƚŝŶƵĂƚŝŽŶŽĨ>K WƌŽũĞĐƚĞĚĚĚŝƚŝŽŶŽĨdǁŽůůĞǇƐ (;+,%,7& (ƐнŽůůĞĐƚŝŽŶƐ ;Ϯϱ Ϭ͕ϱϵϮ ϱϵϮ $ ϰϮϯ͕Ϭϱϳ ϰϮ ϱϬϬ͕ϬϬϬ ϮϱϬ͕ϬϬϬ ϮϱϬ͕Ϭ Ϯϯϱ͕ϬϬϬ Ϯϯϱ͕ $0Ϯϲϰ͕ϳϰϭ Ϯϲϰ͕ϳϰϭ $Ϯϳ͕ϯϬϬ ϬϬ 03/0 ϳϱϯ͕ϴϲϯ ϳϵϴ͕ϴϱϭ ( ϳϳϮ͕ϮϳϬ Base Increment Total Assessed FORT COLLINS DOWNTOWN DEV. AUTH 058 Auth AuthorityName Area % TIF % Effective Increment * Effective Base * Total Assessed Mill Levy Total Revenue Entity Revenue TIF Revenue TIF Tax Warrant 12/21/2017 Authority # 2017 328'5(56&+22/',675,&7 /$5,0(5&2817< &,7<2))257&2//,16 +($/7+',675,&72)1257+(51/$5,0(5&17< )257&2//,16'2:172:1'(9$87+ )257&2//,16*,'12 /$5,0(5&2817<3(67&21752/ %2;(/'(56$1,7$7,21',675,&7 ($67/$5,0(5&2817<:$7(5',675,&7 328'5(5,9(538%/,&/,%5$5<',675,&7 1257+(51&2/25$'2:$7(5&216',675,&7 %/2&.0(752',675,&712 %/2&.0(752',675,&712 * Base and increment values certified to taxing entities (;+,%,7& (',675,&7 ; $ 03/ ( $5,665,066 Total TIF Rev 'DWH ,QWHUHVW 3ULQFLSDO 7RWDO 7RWDOIRUWKH<HDU 'RZQWRZQ'HYHORSPHQW$XWKRULW\ %RQG3D\PHQW6FKHGXOH (;+,%,7& ( ;$ 03/ ( :RRGZDUG/RDQ ϲ͕ϬϱϬ͕ϬϬϬ 3XEOLF )DFDGHV ,PSURY 3, 5HLPEXUVHPHQW$PRXQW 6WDUW'DWH 6HS 3KDVH, ϲ͕ϬϱϬ͕ϬϬϬ ϴϬй 0DWXUHV 6HS 3KDVH,, ϲ͕ϬϱϬ͕ϬϬϬ ϳϯй <HDUV ϭϴ 3KDVH,,, ϲ͕ϬϱϬ͕ϬϬϬ 3KDVH,9 ϲ͕ϬϱϬ͕ϬϬϬ ϲϴй 7LPHLQ <HDUV 'DWH 3D\PHQW ,QWHUHVW 3ULQFLSDO %DODQFH 3KDVH,DQG,, 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