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HomeMy WebLinkAboutCOLLINDALE BUSINESS PARK / CBW INC - I*P SITE PLAN REVIEW - 2-89 - REPORTS - SECOND READINGAGENDA ITEM SUMMARY ITEM NUMBER: 9 DATE: January 17, 1989 FORT COLLINS CITY COUNCIL STAFF: Linda Hopkins SUBJECT Second Reading of Ordinance No. 10, 1989, Granting a Partial Exemption from Payment of the Street Oversizing Fee and Authorizing the Transfer of Prior Year Reserves into the Street Oversizing Fund. RECOMMENDATION: Staff recommends adoption of this Ordinance on Second Reading. EXECUTIVE SUMMARY: C/B/W Inc. is a Lawrence, Kansas manufacturing firm that would like to relocate in Fort Collins. It has selected a site and has worked with FCI, City staff, and the State Office of Economic Development to develop a financing package that is reasonable and helpful. The City Council has discussed the negative perception of the street oversizing fee and the potential impact on new business development and expansions and has approved, through the passage of the revised Street Oversizing Ordinance, a procedure for exempting targeted industries from payment of all or any portion of the fee, provided that an equivalent sum is available for transfer into the Street Oversizing Fund in lieu of the exempted portion of the fee. Staff has been directed to prepare a full program proposal for further Council discussion of additional options for subsidizing targeted industry relocations or local industry expansions. Based on the benefit to the community from a new base industry, it is reasonable that Council consider exempting C/B/W Inc. from payment of one-half, not to exceed $18,000 of the street oversizing fee and that a like amount be transferred into the fund from prior year reserves. C/B/W Inc. qualifies as a new base industry which will benefit the economic growth of Fort Collins. Passage of this Ordinance, which was unanimously adopted as amended on First Reading on January 3, would be consistent with Council's previously adopted goals and policies related to economic development and opportunities. • 0 ORDINANCE NO. 10, 1989 OF THE COUNCIL OF THE CITY OF FORT COLLINS GRANTING A PARTIAL EXEMPTION FROM PAYMENT OF THE STREET OVERSIZING FEE AND AUTHORIZING THE TRANSFER OF CERTAIN PRIOR YEAR RESERVES INTO THE STREET OVERSIZING FUND WHEREAS, City Council has determined that it is in the best interests of the City that high priority be given to the economic development and enhancement of economic health of the City; and WHEREAS, the Council has further adopted certain policies and strategies to promote economic development and enhancement of economic health, those policies having been adopted on March 17, 1987, pursuant to Resolution 87-49; and WHEREAS, said Resolution 87-49 encourages economic development and opportunities that provide primary employment, increase private investment in the community, and improve the quality of life of the citizens of the City; and WHEREAS, Section 24-120(b) of the Code of the City authorizes the Council to exempt certain qualifying businesses or industries from payment of the street oversizing fee, in whole or in part, and to transfer monies into the Street Oversizing Fund in lieu of any such exempted fees; and WHEREAS, C/B/W Inc. is a manufacturing firm desiring to locate in the City; and WHEREAS, C/B/W Inc. meets the criteria of Section 24-120(b) of the Code, is capable of providing such primary employment opportunities and, if located in the City, would increase private investment in the community and improve the overall quality of life of the citizens of the City; and WHEREAS, the 1988 sales tax receipts of the City of Fort Collins will exceed projected revenues, so that revised 1988 undesignated reserves, as shown in the 1989 budget, are sufficient to permit the transfer from prior year's reserves of an amount equal to the exempted portion of the fee; and WHEREAS, Article V of the Charter of the City of Fort Collins authorizes the City Council to provide by ordinance for payment of any expense from prior year reserves at any time such reserves are available; and WHEREAS, the City Council has determined that it is in the best interests of the City that C/B/W Inc. be partially exempted from payment of the street oversizing fee to the extent of one-half (1/2) of such fee or the sum of Eighteen Thousand Dollars ($18,000), whichever is less, and that a like amount be appropriated from prior year reserves within the Restricted Reserve for Economic Development for transfer into the Street Oversizing Fund. • 0 • NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the Council hereby finds and determines that C/B/W Inc. is a manufacturing firm which, if located within the City of Fort Collins, will contribute substantially to the economic development of the City and which meets the criteria established in Section 24-120(b) of the Code of the City. Section 2. That C/B/W Inc. be and is hereby granted a partial exemption from imposition of the City's street oversizing fee pursuant to Chapter 24 of the Code, to the extent of one-half (1/2) of the amount of such fee as would otherwise be imposed thereunder or to the extent of Eighteen Thousand Dollars ($18,000), whichever is less. Section 3. That an amount of money equal to the above -mentioned exempted portion of the street oversizing fee is hereby authorized for transfer from prior year reserves within the General Fund Restricted Reserve for Economic Development and is appropriated for expenditure from the Street Oversizing Fund for the purposes described in Section 24-121 of the Code, which transfer and appropriation shall take effect at such time that C/B/W Inc. applies for and obtains, pursuant to all applicable ordinances and regulations of the City, a building permit for construction of its manufacturing plant within the City of Fort Collins. Section 4. That in the event that the building permit referred to above is not issued on or before December 31, 1989, the monies hereinabove authorized for transfer and appropriation shall lapse to the Restricted Reserve for Economic Development within the General Fund and the aforementioned exemption shall be automatically withdrawn and rescinded. Introduced, considered favorably on first reading, and ordered published this 3rd day of January A.D. 1989, and to be presented for final passage on the 17th day of January A.D. 1989. Mayor ATTEST: 1 City Clerk �,; • 0 1989. Passed and adopted on final reading this 17th day of January, A.D. ATTEST: City Clerk • Mayor AGENDA ITEM SUMMARY ITEM NUMBER: 23 DATE: January 3, 1989 FORT COLLINS CITY COUNCIL STAFF: Linda Hopkins SUBJECT: Hearing and First Reading of Ordinance No. 10, 1989, Granting a Partial Exemption from Payment of the Street Oversizing Fee and Authorizing the Transfer of Prior Year Reserves into the Street Oversizing Fund. RECOMMENDATION: Staff recommends adoption of this Ordinance on First Reading. FINANCIAL IMPACT: Actual 1988 General Fund revenues will exceed projections, increasing the available Undesignated Reserve Balance. Thus, if the exemption provided for in the ordinance is granted, monies are available in prior year reserves for transfer to the Street Oversizing Fund in lieu of the exempted portion of the fee. It is anticipated that use taxes on new equipment, property tax, and use tax generated by the construction of the C/B/W Inc. facility and new employment will help to offset this cost to the City. EXECUTIVE SUMMARY: C/B/W Inc. is a Lawrence, Kansas manufacturing firm that would like to relocate in Fort Collins. It has selected a site and has worked with FCI, City staff, and the State Office of Economic Development to develop a financing package that is reasonable and helpful. The City Council has discussed the negative perception of the street oversizing fee and the potential impact on new business development and expansions and has approved, through the passage of the revised Street Oversizing Ordinance, a procedure for exempting targeted industries from payment of all or any portion of the fee, provided that an equivalent sum is available for transfer into the Street Oversizing Fund in lieu of the exempted portion of the fee. Staff has been directed to prepare a full program proposal for further Council discussion of additional options for subsidizing targeted industry relocations or local industry expansions. Based on the benefit to the community from a new base industry, it is reasonable that Council consider exempting C/B/W Inc. from payment of one-half, not to exceed $18,000 of the street oversizing fee and that a like amount be transferred into the fund from prior year reserves. C/B/W Inc. qualifies as a new base industry which will benefit the economic growth of Fort Collins. Passage of the proposed Ordinance would be consistent with Council's previously adopted goals and policies related to economic development and opportunities. DATE: January 3, 1989 -2- ITEM NUMBER: 23 BACKGROUND: New base industry growth is fundamental to the expansion and long term health of the local economy. Base industries are generally exporting businesses that have the ability to import new dollars into the economy, provide employment opportunities, and boost local property and sales use tax revenues. The initial new investment has a multiplier effect of 2 - 4 times, as the monies turn over through the local economy. C/B/W Inc. fits the general parameters as outlined, as well as the criteria in Section 24-120(b) of the Street Oversizing Ordinance, as a new base industry, offers certain benefits to the community including: 50 Total jobs 25 - 30 Local hires $1.2 million annual payroll Revenues to the City of Fort Collins S 4,125 New equipment use tax $ 2,250 Estimated City property tax 13 750 Use tax on building permit $20,125 Total direct dollars to City $25,410 Sales tax revenues -assumes 77 cents per payroll dollar spent locally on retail goods. $43,535 Total This is new investment in the community. Frequently the community's attitude toward business and the ability to be flexible in negotiating how and when the industry may pay for its development costs and impacts is an important reflection of business attitude and environment that can weigh heavily in relocation or expansion decisions. Businesses do not automatically expect or require waivers or substantial financial incentives, but do anticipate some acknowledgement of the valuable contributions they make to the local economy. It makes sense to use this new business investment to, in part, offset some of the up -front costs of new location, and local base industry expansions. Staff has determined that C/B/W Inc. meets the guidelines for new and expanding base industries. Undesignated General Fund Reserves are available to designate for payment of the designated portion of the street oversizing fee for the C/B/W plant. Contingencies are noted to protect the City: Transfer of the money will be made only at the time that C/B/W Inc. is issued a building permit for its new plant.