HomeMy WebLinkAboutRFP - 7471 UNDERWRITING SERVICES FOR 2013 TAX INCREMENT REVENUE BONDSREQUEST FOR PROPOSAL
7471 UNDERWRITING SERVICES FOR 2013 TAX INCREMENT REVENUE BONDS
The City of Fort Collins is requesting proposals from qualified firms to provide
Underwriting Services for the Fort Collins Urban Renewal Authority 2013 Tax Increment
Revenue Bonds.
Proposals may be submitted by E-mail in Microsoft Word or PDF format. E-mail
submittals shall be e-mailed to: purchasing@fcgov.com. If submitting hard copy
proposals, eight (8) copies, will be received at the City of Fort Collins' Purchasing
Division, 215 North Mason St., 2nd floor, Fort Collins, Colorado 80524. Proposals will
be received before 3:00 p.m. (our clock), February 15, 2013 and referenced as
Proposal No. 7471. If delivered, they are to be sent to 215 North Mason Street, 2nd
Floor, Fort Collins, Colorado 80524. If mailed, the address is P.O. Box 580, Fort
Collins, 80522-0580.
The City encourages all disadvantaged business enterprises to submit proposals in
response to all requests for proposals and will not be discriminated against on the
grounds of race, color, national origin for all proposals for negotiated agreements.
Questions concerning the scope of the project should be directed to Investment
Administrator, Harold Hall at (970) 221-6784 or hhall@fcgov.com.
Questions regarding bid submittal or process should be directed to Jim O’Neill, CPPO,
FNIGP, Director of Purchasing & Risk Management, at (970) 221-6779 or
joneill@fcgov.com.
A copy of the Proposal may be obtained as follows:
1. Download the Proposal/Bid from the BuySpeed Webpage,
www.fcgov.com/eprocurement
The City of Fort Collins is subject to public information laws, which permit access to
most records and documents. Proprietary information in your response must be clearly
identified and will be protected to the extent legally permissible. Proposals may not be
marked ‘Proprietary’ in their entirety. Information considered proprietary is limited to
material treated as confidential in the normal conduct of business, trade secrets,
discount information, and individual product or service pricing. Summary price
information may not be designated as proprietary as such information may be carried
forward into other public documents. All provisions of any contract resulting from this
request for proposal will be public information.
Financial Services
Purchasing Division
215 N. Mason St. 2nd Floor
PO Box 580
Fort Collins, CO 80522
970.221.6775
970.221.6707
fcgov.com/purchasing
7471 Underwriting Services for 2013 Tax Increment Revenue Bonds Page 1 of 32
Sales Prohibited/Conflict of Interest: No officer, employee, or member of City Council,
shall have a financial interest in the sale to the City of any real or personal property,
equipment, material, supplies or services where such officer or employee exercises
directly or indirectly any decision-making authority concerning such sale or any
supervisory authority over the services to be rendered. This rule also applies to
subcontracts with the City. Soliciting or accepting any gift, gratuity favor, entertainment,
kickback or any items of monetary value from any person who has or is seeking to do
business with the City of Fort Collins is prohibited.
Collusive or sham proposals: Any proposal deemed to be collusive or a sham proposal
will be rejected and reported to authorities as such. Your authorized signature of this
proposal assures that such proposal is genuine and is not a collusive or sham proposal.
The City of Fort Collins reserves the right to reject any and all proposals and to waive
any irregularities or informalities.
Sincerely,
James B. O'Neill II, CPPO, FNIGP
Director of Purchasing & Risk Management
7471 Underwriting Services for 2013 Tax Increment Revenue Bonds Page 2 of 32
REQUEST FOR QUALIFICATIONS
7471 UNDERWRITING SERVICES FOR 2013 TAX INCREMENT REVENUE BONDS
The Financial Officer of the City of Fort Collins (the “City”) is requesting proposals from
firms to provide Underwriting Services for the Fort Collins Urban Renewal Authority
2013 Tax Increment Revenue Bonds. The City reserves the right to contract with the
selected firm for additional financings for a period not to exceed 5 years. However, the
City also reserves the right to solicit new proposals for future financings.
I. INTRODUCTION
The Fort Collins Urban Renewal Authority (the “Authority”) is seeking proposals from
qualified underwriters for an estimated $12 to $14 million of its Series 2013 Tax
Increment Revenue Bonds (the “2013 Bonds”). The proceeds of the 2013 Bonds will be
applied to the repayment of certain loans made by the City of Fort Collins to the
Authority for public improvements within the North College Project Area (the “North
College Loans”). The 2013 Bonds will be repaid from property tax increment revenues
generated within the North College Urban Renewal Project Area through 2029.
The Authority reserves the right to reject all proposals, negotiate with any prospective
purchaser, and seek financing through other means. If the 2013 Bonds are not
delivered for any reason, proposing firms will have no recourse against the City, its
general counsel, bond counsel, financial advisor, or any of its affiliates or
representatives for any expenses, losses, damages, or liability incurred.
The 2013 Bonds will be exempt from federal and Colorado state income tax.
II. OVERVIEW
The North College URA Project Area was created in 2004, giving the URA the right to
receive incremental property tax revenue through 2029. The City has loaned
approximately $16,843,000 to the URA for redevelopment of the North College area.
Approximately $16.4 million, plus interest, is currently owed to the City.
The North College Urban Renewal Plan area consists of 407.2 gross acres with the
following breakdown; Agricultural 18.5 acres, Commercial 260.9 acres, Exempt 55.7
acres, industrial 1.4 acres, Mobile Home Parks 15.3 acres, Non-Taxable 6.9 acres, and
Residential 48.5 acres. Undeveloped gross acres equals 35.4% of total plan area at
144 acres. A local real estate and development company, Loveland Commercial, LLC,
built a large retail center anchored by a 123,000 sq. ft. King Soopers, on East Willox
Lane and North College Avenue. It is the first “marketplace” concept for King Soopers
on the Front Range. The new design offers both general merchandise (clothing,
electronics, etc.) and a traditional grocery market. In addition to the large King Soopers,
there are multiple pad sites for banks, restaurants, retail, fast food and a gasoline pad.
Total retail space equals 175,000 sq.ft.
7471 Underwriting Services for 2013 Tax Increment Revenue Bonds Page 3 of 32
Largest Taxpayers: (Includes Real and Personal Property Taxes)
NAME Estimated Taxes Payable in 2013
DILLON COMPANIES INC 367,825.64
RMI2 PROPERTIES LLC 147,314.45
KING SOOPERS 119,108.53
COLE AB FORT COLLINS CO LLC 96,440.75
JOG LLC 76,876.02
FIRSTBANK 73,024.10
COUNTRY CLUB CORNERS LLC 70,751.96
INVEX LTD 57,960.75
1908 NORTH COLLEGE LLC 57,520.34
MANDN LLC 51,092.99
In the event that the proceeds of the 2013 Bonds are not sufficient to repay 100% of the
North College Loans, the City expects to retain a subordinated right to receive surplus
property tax increment revenues until it is fully reimbursed.
The North College Urban Renewal Area Map, Legal Description and Boundary of
Development, Large Project Description, URA Overview of the First Five Years, Vacant
Land Description and History of Base Assessed Values, Incremental Assessed Values,
and TIF Revenues are attached as exhibit B.
Security
The 2013 Bonds will be repaid from property tax increment revenues generated within
the North College Urban Renewal Project Area through the year 2029.
Incremental property tax revenues of approximately $925,000 were generated in the
North College Project Area in 2012. Based on the Larimer County Assessor’s certified
values, tax increment revenues for 2013 are projected at $1,262,000.
The 2013 Bonds are expected to be secured by debt service reserve fund (the “Reserve
Fund”), and by a Reserve Fund replenishment resolution to be adopted by the City of
Fort Collins (the “Moral Obligation Pledge”). The Moral Obligation Pledge of the City is
a promise that, in the event of a draw on the Reserve Fund to meet a debt service
payment on the 2013 Bonds, the City will give consideration to replenishing the Reserve
Fund to the required amount. The Moral Obligation Pledge does not obligate the City to
advance funds to replenish the Reserve Fund, and any such advance would be subject
to an annual appropriation of funds in the City budget.
The City and City’s Finances
The City is located approximately 60 miles north of Denver in north central Colorado just
west of Interstate 25, the principal route between Denver, Colorado, and Cheyenne,
Wyoming. The City was founded in 1864 and is the county seat of Larimer County. In
1954, the present City Charter was adopted, authorizing a council-manager form of
government. Colorado State University is located in the City and students and staff at
7471 Underwriting Services for 2013 Tax Increment Revenue Bonds Page 4 of 32
the University are a significant factor in the City’s economy. In recent years the City has
attracted a significant number of light industry and high technology businesses. The
municipal boundaries of the City encompass 55.58 square miles and the recent
estimate of the 2011 population is 144,875, including students.
Information on the City and the City’s facilities and operations, including budgets and
comprehensive annual financial reports, is available on the City’s website at:
http://www.fcgov.com.
Repayment Structure
Interest on the 2013 Bonds will be payable on June 1 and December 1, beginning
December 1, 2013, and principal will be payable annually on December 1, beginning no
sooner than December 1, 2013. The final payment of principal and interest will be no
later than December 1, 2029. The actual repayment schedule for the 2013 Bonds will
developed with the assistance of the selected underwriter.
Other Participants in the Transaction
The law firm of Sherman & Howard will serve as bond counsel for this transaction. At
closing, bond counsel will deliver an opinion stating that interest on the 2013 Bonds is
excludable from gross income for federal and Colorado state income tax purposes, as
further described in such opinion, and subject to the assumptions set forth therein. BLX
Group LLC serves as financial advisor to the Authority.
Tentative Schedule of Events
The Authority expects to select the proposing firm which it believes will best meet its
overall expectations for the proposed financing. However, the Authority reserves the
right to reject any and all proposals submitted in response to this RFP, to negotiate with
any proposer and to seek financing through other means. The Authority also reserves
the right to request additional information from any of the proposing firms. An award
may be made solely from the written proposals or interviews may be held with the top
ranked firms.
January 25 Authority posts RFP for potential underwriters
February 15 Proposals due
Week of March 4 Interviews, if needed
March 13 Underwriter tentatively selected
Week of March 18 Structuring and Due Diligence Meeting with
underwriter
April 16 First Reading of Bond Ordinance
May 7 Second Reading of Bond Ordinance
May 17 Ordinance becomes effective
May 30 Marketing of Bonds
June 16 Closing and delivery of funds
7471 Underwriting Services for 2013 Tax Increment Revenue Bonds Page 5 of 32
III. Required Response Items
1. Please describe your firm’s tax-exempt underwriting activity in both the national
and Colorado markets since January, 2009. 2 pages
2. Please provide a listing and a description of your firm’s experience in the
underwriting of Urban Renewal Authority bonds in Colorado starting in 2003.
Include a summary of the security for individual transactions, including the pledge
of property tax increment, sales tax increment, public improvement fees,
metropolitan district tax pledges, moral obligation pledges, or other security.
Transactions in which TIF was pledged by a URA to support the bonds of
another issuer may be included in this response. Please provide the original and
the current bond ratings, if any, and describe any credit enhancement used to
support the issue. List the dollar volume of your underwritings in the TIF revenue
bonds for the years 2010, 2011, and 2012.
3. Please identify the public finance personnel assigned to this transaction and
provide brief descriptions of their relevant experience with Colorado Urban
Renewal Authority Bonds.
4. Please identify the underwriting or trading desk personnel who will be personally
responsible for pricing this issue and provide brief descriptions of their relevant
experience with Colorado Urban Renewal Authority Bonds.
5. Please describe your municipal bond sales force, including the number and
location of salespeople.
6. The Authority does not currently have any rated obligations, nor does the City
have any ratings associated with its Moral Obligation pledge. The City’s Series
2012 Certificates of Participation are rated “Aa1” by Moody’s, and the City has
been assigned an Issuer Rating of “Aaa” by Moody’s. Please discuss your
approach to applying for ratings for the 2013 Bonds, including the services your
firm will provide in presenting the issue to the rating agency or agencies. Please
include your comments regarding the potential use of municipal bond insurance
for this issue.
7. Please present a preliminary structure and debt capacity projection, including
projected interest rates, for an issue which can be supported by the property tax
increment revenues within the North College project area. Assume a cash
reserve fund is sized into the issue. Please explain the credit assumptions which
support the projected interest rates, including the assumed ratings for the 2013
Bonds. Identify the benchmarks for pricing the transactions specifically listed in
this proposal. Provide the basis for your estimates.
8. Please provide your proposed fee structure for the 2013 Bonds, including any
reimbursable costs you would submit to the Authority for payment. In addition,
7471 Underwriting Services for 2013 Tax Increment Revenue Bonds Page 6 of 32
please indicate whether you anticipate retaining underwriter’s counsel, and, if so,
what related costs the Authority would be expected to absorb.
9. Please submit any additional information which you believe would be useful to
the Authority in evaluating your qualifications to serve as underwriter. State in
two (2) pages or less, why your firm is well qualified to provide the services
outlined in the Scope of Services section above and your firm’s experience in
providing such services. In citing prior engagements, indicate the role and
responsibilities your firm undertook (financial advisor, senior managing
underwriter, etc.).
10. Please disclose any legal or regulatory proceedings initiated against the firm
since January 1, 2008, related directly or indirectly to its activities in the municipal
bond market. Disclose any relationship which could create or appear to create a
potential conflict of interest if your firm is selected.
*To facilitate the review process, the City asks that each firm keep its qualification
statement concise and limit the submittal to twenty-five (25) pages or less excluding
information attached as appetencies and exhibits to the proposal. Every page of
your qualification statement, excluding cover and divider pages, must be numbered.
7471 Underwriting Services for 2013 Tax Increment Revenue Bonds Page 7 of 32
IV. SIGNATURE FORM
"We propose to furnish a consultant in accordance with the terms, conditions, and
specifications detailed in the City's Request for Proposal and in our accompanying
written response without exception, deletion, or qualification."
Signature ______________________________________________________________
Printed Name & Title _____________________________________________________
Company Name ________________________________________________________
Business Address _______________________________________________________
_______________________________________________________
Phone __________________________ Email ______________________________
RFP No _________________________ Date of Proposal _____________________
THIS FORM MUST BE RETURNED WITH YOUR PROPOSAL
7471 Underwriting Services for 2013 Tax Increment Revenue Bonds Page 8 of 32
V. REVIEW AND ASSESSMENT
Professional firms will be evaluated on the following criteria. These criteria will be the
basis for review of the written proposals and any interview session.
The rating scale shall be from 1 to 5, with 1 being a poor rating, 3 being an average
rating, and 5 being an outstanding rating.
WEIGHTING
FACTOR QUALIFICATION STANDARD
2.0 Scope of Proposal
Does the proposal show an understanding of
the project objective, methodology to be used
and results that are desired from the project?
2.0 Assigned
Personnel
Do the persons who will be working on the
project have the necessary skills? Are
sufficient people of the requisite skills assigned
to the project?
1.0 Availability
Can the work be completed in the necessary
time? Can the target start and completion
dates be met? Are other qualified personnel
available to assist in meeting the project
schedule if required? Is the project team
available to attend meetings as required by the
Scope of Work?
1.0 Motivation Is the firm interested and are they capable of
doing the work in the required time frame?
2.0 Cost and Work
Hours
Do the proposed cost and work hours compare
favorably with the project Manager's estimate?
Are the work hours presented reasonable for
the effort required in each project task or
phase?
2.0 Firm Capability
Does the firm have the support capabilities the
assigned personnel require? Has the firm
done previous projects of this type and scope?
7471 Underwriting Services for 2013 Tax Increment Revenue Bonds Page 9 of 32
Reference Evaluation (Top Ranked Firm)
The project Manager will check references using the following criteria. The evaluation
rankings will be labeled Satisfactory/Unsatisfactory.
QUALIFICATION STANDARD
Overall Performance Would you hire this Professional again? Did they
show the skills required by this project?
Timetable
Was the original Scope of Work completed within
the specified time? Were interim deadlines met in
a timely manner?
Completeness
Was the Professional responsive to client needs;
did the Professional anticipate problems? Were
problems solved quickly and effectively?
Budget Was the original Scope of Work completed within
the project budget?
Job Knowledge
a) If a study, did it meet the Scope of Work?
b) If Professional administered a construction
contract, was the project functional upon
completion and did it operate properly? Were
problems corrected quickly and effectively?
7471 Underwriting Services for 2013 Tax Increment Revenue Bonds Page 10 of 32
VI. FORT COLLINS URBAN RENEWAL AUTHORITY ADDITIONAL INFORMATION
Legal Description
DESCRIPTION OF THE BOUNDARY OF THE NORTH COLLEGE URBAN RENEWAL PLAN
AREA
The North College Urban Renewal Plan Area is located in Sections 35
and 36 of Township 8 North Range 69 West and in Sections 1, 2, 11 and
12 of Township 7 North Range 69 West all of the Sixth Principal
Meridian, City of Fort Collins, Larimer County, Colorado, being more
particularly described as follows;
Commencing at the northeast corner of the said Section 2;
THENCE westerly along the north line of Section 2 to the east one
sixteenth corner on the north line of Section 2 and to the TRUE POINT
OF BEGINNING OF THIS DESCRIPTION;
THENCE northerly along the west line of the southeast quarter of
the southeast quarter of the said Section 35 to the north right of way
of West Willox Lane;
THENCE easterly along the said north right of way, to the west
line of Lot 21 of the Plat of The Re-subdivision Of The Goehring
Subdivision;
THENCE northerly along the west line of Lot 21 and along the west
line of Lot 3 of the K-D Park Subdivision to the northerly line of the
North College Annexation to the said City;
THENCE northeasterly, northerly, easterly and southeasterly along
the said northerly annexation line, to the east most line of the said
North College Annexation;
THENCE southerly along the said east most line and along the east
line of the Nauta North College Annexation to the said City to the
north right of way of East Willox Lane;
THENCE easterly along the said north right of way, to the west
line of the Willox Heights Annexation to the said City;
THENCE northerly along the said west line to the north line of
the said Willox Heights Annexation;
THENCE easterly, southerly and easterly along the said north
line, to the east line of the said Willox Heights Annexation;
THENCE southerly along the said east line and its southerly
extension to the south right of way of the said East Willox Lane;
THENCE westerly along the said south right of way to the east
right of way of Blue Spruce Drive;
THENCE southerly along the said east right of way to the south
line of the plat of Replat of Coachlight Plaza;
THENCE easterly along the said south line to the east line of
Block 5 of the plat of Replat No. 1 of Evergreen Park;
THENCE southerly along the said east line to the south line of
the plat of Nokomis Subdivision;
THENCE easterly along the said south line and its easterly
extension to the easterly right of way of Redwood Street;
7471 Underwriting Services for 2013 Tax Increment Revenue Bonds Page 11 of 32
THENCE southerly along the said easterly right of way and its
southerly extension to the southerly right of way of East Vine Drive;
THENCE westerly along the said southerly right of way to the
easterly right of way of North College Avenue;
THENCE southerly along the said easterly right of way to the
southerly line of the said North College Annexation;
THENCE westerly along the said southerly line, its westerly
extension and along the southerly line of the Griffin Addition to the
said City to a line which is 75.00 feet (measured at right angles)
westerly of and parallel with the centerline of the main track of the
Union Pacific Railroad;
THENCE northerly along the said parallel line to the south line
of the U.S. Department of Agriculture Forest Service, Canyon Lakes
Ranger District Administrative Site;
THENCE westerly along the said south line to the west line of the
said Canyon Lakes Ranger District Administrative Site;
THENCE northerly along the said west line and its northerly
extension to the south right of way of Hemlock Street (4th Street);
THENCE westerly along the said south right of way to the north-
south centerline of the said Section 2 and to the easterly line of
McMurry Park;
THENCE northerly, westerly and northwesterly along the said
easterly line of McMurry Park to the east-west centerline of the said
Section 2;
THENCE easterly along the said east-west centerline to the west
line of the plat of Lakewood Estates Mobile Home Park;
THENCE northerly along the said west line to the northerly right
of way of Hickory Street;
THENCE easterly along the said northerly right of way to a line
which is 25.00 feet (measured at right angles) northeasterly of and
parallel with the said centerline of the main track of the Union
Pacific Railroad;
THENCE northwesterly along the said parallel line to a line which
is 328.50 feet (measured at right angles) north of and parallel with
the south line of the north east quarter of the said Section 2;
THENCE easterly along the said parallel line to the west line of
the east half of the said northeast quarter of Section 2;
THENCE northerly along the said west line of the east half of the
northeast quarter to the Point of Beginning.
7471 Underwriting Services for 2013 Tax Increment Revenue Bonds Page 12 of 32
Acres ZONE_NAME ZONE1
1.83569245112 COMMUNITY COMMERCIAL ‐ NORTH COLLEGE DISTRICT CCN
5.65641327957 COMMUNITY COMMERCIAL ‐ NORTH COLLEGE DISTRICT CCN
25.97716008610 COMMUNITY COMMERCIAL ‐ NORTH COLLEGE DISTRICT CCN
3.87693164660 COMMUNITY COMMERCIAL ‐ NORTH COLLEGE DISTRICT CCN
4.43818044362 COMMUNITY COMMERCIAL ‐ NORTH COLLEGE DISTRICT CCN
1.46301113115 COMMUNITY COMMERCIAL ‐ NORTH COLLEGE DISTRICT CCN
0.64423405445 COMMUNITY COMMERCIAL ‐ NORTH COLLEGE DISTRICT CCN
0.63500601394 COMMUNITY COMMERCIAL ‐ NORTH COLLEGE DISTRICT CCN
0.59373622215 COMMUNITY COMMERCIAL ‐ NORTH COLLEGE DISTRICT CCN
1.20205812100 COMMUNITY COMMERCIAL ‐ NORTH COLLEGE DISTRICT CCN
46.32
0.47695159024 INDUSTRIAL DISTRICT I
0.68155436044 INDUSTRIAL DISTRICT I
0.69457262427 INDUSTRIAL DISTRICT I
0.96241349064 INDUSTRIAL DISTRICT I
1.07458561815 INDUSTRIAL DISTRICT I
0.88021486444 INDUSTRIAL DISTRICT I
0.93893796418 INDUSTRIAL DISTRICT I
0.94041223924 INDUSTRIAL DISTRICT I
1.00161378497 INDUSTRIAL DISTRICT I
7.65
18.46557276490 Medium Density Mixed‐Use Neighborhood MMN
18.47
6.31143230324 RIVER CONSERVATION DISTRICT RC
0.60264520581 SERVICE COMMERCIAL DISTRICT CS
0.96782278163 SERVICE COMMERCIAL DISTRICT CS
0.97038691446 SERVICE COMMERCIAL DISTRICT CS
0.96263478680 SERVICE COMMERCIAL DISTRICT CS
0.96594072884 SERVICE COMMERCIAL DISTRICT CS
6.15299731827 SERVICE COMMERCIAL DISTRICT CS
2.28890253316 SERVICE COMMERCIAL DISTRICT CS
1.66648815138 SERVICE COMMERCIAL DISTRICT CS
1.10902855231 SERVICE COMMERCIAL DISTRICT CS
0.97827532154 SERVICE COMMERCIAL DISTRICT CS
2.46743993788 SERVICE COMMERCIAL DISTRICT CS
4.10307070689 SERVICE COMMERCIAL DISTRICT CS
7.19403497794 SERVICE COMMERCIAL DISTRICT CS
5.94853020966 SERVICE COMMERCIAL DISTRICT CS
7.59501303882 SERVICE COMMERCIAL DISTRICT CS
1.41058971014 SERVICE COMMERCIAL DISTRICT CS
0.51985316178 SERVICE COMMERCIAL DISTRICT CS
0.88993346509 SERVICE COMMERCIAL DISTRICT CS
1.96567954578 SERVICE COMMERCIAL DISTRICT CS
1.95518749443 SERVICE COMMERCIAL DISTRICT CS
0.99756694577 SERVICE COMMERCIAL DISTRICT CS
0.82700257396 SERVICE COMMERCIAL DISTRICT CS
3.04755977369 SERVICE COMMERCIAL DISTRICT CS
0.15984014068 SERVICE COMMERCIAL DISTRICT CS
2.72050937617 SERVICE COMMERCIAL DISTRICT CS
0.83191433812 SERVICE COMMERCIAL DISTRICT CS
1.76799399130 SERVICE COMMERCIAL DISTRICT CS
2.17281076123 SERVICE COMMERCIAL DISTRICT CS
1.31058477589 SERVICE COMMERCIAL DISTRICT CS
0.59501775047 SERVICE COMMERCIAL DISTRICT CS
71.46
The Service Commercial District is intended for high traffic commercial
corridors where a range of uses is encouraged to create a transition
from commercial operations on a highway, arterial street or rail spur, to
less intensive use areas or residential neighborhoods. This designation
7471 Underwriting Services for 2013 Tax Increment Revenue Bonds Page 14 of 32
7471 Underwriting Services for 2013 Tax Increment Revenue Bonds Page 15 of 32
Large Projects
PROJECT: RESTORE FORT COLLINS
Valley Steel and Wire
Company
Developer:
Valley Steel and Wire
URA Participation:
$105,578 in TIF reimbursement
Total Project Cost:
$900,000
Completion Date:
October 2006
The first project funded by URA financing, Valley Steel and Wire Company is a wholesale operation
primarily receiving steel products by rail and then distributing those products to various construction
companies and other users by truck.
They built an additional 19,000 square foot distribution and warehouse facility at 280 Hickory Street,
adjacent to their existing facility.
The URA-funded sewer expansion benefits adjacent property owners and future redevelopment
projects along this block.
PROJECT: RESTORE FORT COLLINS
North College Marketplace
Developer:
Loveland Commercial
URA Participation:
$8 million in property TIF
Total Project Cost:
$40 million
Completion Date:
Summer 2011
7471 Underwriting Services for 2013 Tax Increment Revenue Bonds Page 16 of 32
< >
Moving dirt, October 2009
A local real estate and development company, Loveland Commercial, LLC, is building a large retail
center anchored by a 123,000 sq. ft. King Soopers, on East Willox Lane and North College Avenue.
It is the first “marketplace” concept for King Soopers on the Front Range. The new design offers both
general merchandise (clothing, electronics, etc.) and a traditional grocery market.
In addition to the large King Soopers, there are multiple pad sites for banks, restaurants, retail, fast
food and a gasoline pad. Total retail space equals 175,000 sq.ft.
The North College Marketplace is taking shape in a previously blighted, under-developed area of
north Fort Collins. Due to extraordinary project site constraints, the URA is investing in public
improvements of infrastructure.
Financial investments include:
Demolition and clean up of blighted area
Off-site street improvements
Wetlands mitigation and enhancements
Gateway features and landscaping
Utility infrastructure
7471 Underwriting Services for 2013 Tax Increment Revenue Bonds Page 17 of 32
The 26-acre catalyst project promises to be a significant retail destination with future property tax
income exceeding $15 million through 2029
PROJECT: REVIVE FORT COLLINS
Kaufman & Robinson, Inc.
(KRI®)
Developer:
KRI
URA Participation:
$269,000
Total Project Cost:
$1.6 million
Completion Date:
Mid 2011
< >
Moving dirt, October 2010
7471 Underwriting Services for 2013 Tax Increment Revenue Bonds Page 18 of 32
Kaufman and Robinson, Inc. is a locally owned business that manufactures and markets industrial
ion sources used in a variety of high tech applications.
They have been at their current location, 1306 Blue Spruce Drive, since 1981. The company is
building a new 10,000 sq. ft. commercial building at 1330 Blue Spruce Drive.
The project will allow a viable business to build a new facility with sustainable features, and expand
their primary employment.
KRI will implement key green features within the project. Some of these features include:
Increased insulation
Installation of special fixtures to reduce water use by 20%
Recycling storage and collection stations
10% of construction materials will be recycled materials
50% of all wood will be certified wood from an environmentally responsible forest
management
Installation of low-emitting materials
Daylight for 75% of the interior spaces.
Tax increment assistance is closing the funding gap of construction. It will aid in mitigating soil and
storm water problems and will support necessary expansion of the existing site infrastructure.
The planned improvements will increase the property value by more than $1,000,000.
PROJECT: RENEW FORT COLLINS
Rocky Mountain Innosphere
Developer:
RMI/ Verde, LLC
URA Participation:
$2.8 million
Total Project Cost:
$7.2 million
Completion Date:
End of 2010
7471 Underwriting Services for 2013 Tax Increment Revenue Bonds Page 19 of 32
< >
Nearly complete, October 2010
More jobs. That is everyone's wish these days. Here is an organization that is doing something
about it. Rocky Mountain Innosphere (RMI) is a high-tech incubator for promising start-ups and
entrepreneurs. People on the path to success, but who are lacking physical space, professional
advise and networking, are encouraged to apply to the incubator.
RMI had leased office space from the City of Fort Collins from 2003-2010 and offered below market
rent to their clients/startup companies. The area is so ripe with great ideas and talent, RMI ran out of
space.
Enter the URA, the City of Fort Collins and Colorado Housing and Finance Authority. Through
innovative business loans and grants, RMI built a new LEED-Gold certified, 31,000 sq.ft. office
building in the North College Urban Renewal Area, on Vine Drive. Filling a critical need in the
bioscience industry, the new building also includes 3,000 SF of wet laboratory space for clients.
Street improvements, detention modifications, utility upgrades and cleaning of a blighted waste
management site are complete.
Renewal efforts go beyond physical improvements. The project promises to stimulate private
investment and attract other high-tech companies.
7471 Underwriting Services for 2013 Tax Increment Revenue Bonds Page 20 of 32
PROJECT: REDEVELOP FORT COLLINS
Jax Mercantile
Developer:
JAX Mercantile
URA Participation:
$197,000
Total Project Cost:
$1.3 million
Completion Date:
End of 2010
< >
New eastern facade, July 2010
Jax Mercantile is a locally-owned business in north Fort Collins with an outdoor line of products
catering to the adventurous people of northern Colorado and southern Wyoming.
Jax is redeveloping its site on North College and adding 25 percent more retail space to their 55-
year-old store. Additional parking will be created as well as a public courtyard between its buildings.
7471 Underwriting Services for 2013 Tax Increment Revenue Bonds Page 21 of 32
As with other URA projects, significant funding gaps and extraordinary infrastructure deficiencies
define this project. The URA is providing TIF to offset the costs and provide needed public utilities in
an area that has remained underdeveloped.
Improvements on the site will greatly enhance the local area’s property tax base and be more
attractive to potential businesses and property owners.
PROJECT: REVITALIZE FORT COLLINS
Habitat for Humanity
Developer:
Fort Collins Habitat for Humanity
URA Participation:
$107,000
Total Project Cost:
$850,000
Completion Date:
End of 2012
Four new Habitat for Humanity homes will be built within Union Place, also a URA project. Habitat
for Humanity provides affordable homes to lower income families who have not been able to qualify
for traditional mortgages and home loans. The new homeowners and numerous community
volunteers will construct the homes.
TIF assistance is helping fund the gap between the cost of the lots and the secured funding already
available.
Under the Master Developer plan, Union Place will be building to LEED Gold New Construction
certification standards. In order to receive this designation, significant public infrastructure upgrades
will be made to Willox Lane, the stormwater detention area, reconstruction of sewer lines,
modernizing utility lines (burying them), and several other area improvements.
District Description
7471 Underwriting Services for 2013 Tax Increment Revenue Bonds Page 22 of 32
Recharging North Fort
Collins
An area in need of attention, the North College area is seeing a resurgence of building, renovation
and infrastructure improvements.
Learn more about the seven projects that are taking place, or which are complete, in this exciting
part of Fort Collins.
Road Improvements in 2012
Long awaited road improvements and the installation of sidewalks and bike lanes are underway from
Vine Drive to Conifer Street. Follow progress of this project on the City's North College
Improvements page.
*Note: The North College Plan Area boundaries are presented in yellow on the Project map.
North College Marketplace is set to expand. Here's a recent article by the Fort Collins Coloradoan
for more information.
7471 Underwriting Services for 2013 Tax Increment Revenue Bonds Page 23 of 32
2005-2010 overview of The
firsT five Years
Fort Collins UrA
7471 Underwriting Services for 2013 Tax Increment Revenue Bonds Page 24 of 32
Letter from the Mayor
Welcome to the Fort Collins Urban Re-
newal Authority (URA) Overview. It has
been my pleasure to watch and guide
the URA from its humble beginnings in
2005 through its current state of tre-
mendous momentum.
This annual report highlights the prog-
ress made by the Fort Collins URA over
the past five years.
Without partnerships with the City,
community, business owners, prop-
erty owners and citizens, the URA
would not be successful. We strive for
ultimate excellence in projects that
meet or exceed the objectives of the
URA policies. We are proud to be the
catalyst of change—to eliminate blight
and foster redevelopment, creating
jobs and inviting projects that are ul-
timately for the public good. These
long-term investments will result in
more than $80 million in public/pri-
vate partnerships in the North College
Plan Area alone. We dare to think of
the future and the possibilities ahead
as we study potential plan areas in
Midtown and Foothills Mall.
As I exit my term as the President of
the URA, and Mayor of the City of Fort
Collins, I’d like to recognize the suc-
cess of the Urban Renewal Author-
ity and our community’s desire to be
world-class, innovative and sustain-
able. Through infrastructure invest-
ments and redevelopment of our
business corridors, we can achieve
long-term economic vitality in Fort
Collins together.
Mayor Doug Hutchinson
City of Fort Collins Mayor 2004-2011
Commitments
$80M in public/private funds within North College Plan Area
$14M in TIF granted, not all funded yet
$26.4M predicted project TIF generation over next 20 years
Granted TIF funds commited to:
• Landscaping/trees/wetland enhancements
• Stormwater improvements
• Streetscapes
• Sidewalks
• Utilities
• Sewer infrastructure
• Green Building components
• Demolition/site prep
• Transportation infrastructure
• Facade enhancements
HICKORY ST.
COLLEGE AVE.
REDWOOD ST.
WILLOX LN.
Valley Steel
Valley Steel and Wire Company
The first project funded by URA financing, Valley Steel and
Wire Company is a wholesale operation primarily receiving steel
products by rail and then distributing those products to various
construction companies and other users by truck. They built an
additional 19,000-square-foot distribution and warehouse facility
expansion at 280 Hickory Street, adjacent to their existing facility.
The URA-funded sewer expansion also benefits adjacent property
owners and future redevelopment projects along this block by
eliminating a significant obstacle to redevelopment.
FACT SHEET
Project:
Valley Steel and Wire Com-
pany
Developer:
Valley Steel and Wire
Total Project Cost:
$900,000
URA Participation:
$105,578 in TIF
reimbursement
Project Location:
200-280 Hickory S.
Completion Date:
October 2006
North College Marketplace
Slated to open in June 2011, the North College Marketplace
will bring a new King Soopers grocery store-anchored shopping
center to the north gateway of Fort Collins. Originally approved
by the URA Board in September 2008, North College Marketplace
celebrated its groundbreaking in October 2009. Steady construc-
tion through 2010 has kept this project on time and constantly
moving forward. The URA granted its largest tax increment grant to
date in the amount of $8 million to aid in the infrastructure require-
ments, wetlands mitigation and site preparation.
URA funds supported the intersection and roadway improvements
on College Avenue and Willox Lane, including a landscaped me-
dian on the north half of the intersection on College and a round-
about on Willox. Improvements and development of the North
College Marketplace will cost $40 million to construct and will gen-
erate $15.5 million in property tax increment.
Wetlands surrounding the development have been enhanced and
replanted allowing native species to survive. When complete, a
vacant 26-acre parcel will be transformed into a destination loca-
tion for Fort Collins residents and visitors.
FACT SHEET
Project:
North College Marketplace
Developer:
Loveland Commercial
Total Project Cost:
$40 million
URA participation:
$8 million
Project Location:
NE corner N. College
and Willox Lane
Completion Date:
June 2011
Union Place
Union Place is the first approved residential project for the
URA. The development plans forecast 89 housing units with more
than 40 percent of the units designated as affordable housing.
Union Place broke ground in late 2009 and worked through 2010
to create buildable lots. In the past year, Union Place has made a
tremendous effort to construct all needed infrastructure for this
housing project to begin vertical home construction in 2011.
Geothermal pumps, roadway improvements, new sidewalks and
public utilities have been successfully installed. URA funding has
enabled new bike lanes and landscaping on Willox Lane. Prior to
these improvements, the site was a 10-acre alfalfa field.
Using innovative building practices, with an eye toward energy effi-
ciency and reduced waste, Union Place is slated to be a LEED-New
Development community upon completion. The partnership be-
tween the URA, Merten, Inc. and Habitat for Humanity contributes
to the community enrichment and progress being made on Fort
Collins’ northern gateway.
FACT SHEET
Project:
Union Place
Developer:
Merten, Inc.
Total Project Cost:
$27 million
URA participation:
$2.2 million
Project Location:
SW corner Willox Lane and N.
College
Completion Date:
Phased/End of 2012
Rocky Mountain Innosphere
The Rocky Mountain Innosphere building is complete.
Client companies and tenants moved in January 2011. The
31,000-square-foot, three-story office building is the new location
for the regional technology incubator. The Innosphere was previ-
ously known as the Rocky Mountain Innovation Initiative, and from
1998-2008 as the Fort Collins Technology Incubator.
The $7.2 million project was granted $2.8 million from the URA for
Tax Increment Financing (TIF) to help leverage other funding sourc-
es. In keeping with building standards adopted by the City of Fort
Collins and other major organizations in Fort Collins, the new build-
ing incorporates green building practices in order to save energy and
money, and to provide a healthy work environment for its staff and
client companies. The Innosphere is seeking United States Green
Building Council (USGBC) LEED Gold - New Building certification.
The new facility provides ample office space at reduced lease
rates. Startup companies within the Innosphere also have access
to conference room space, a shared reception area, training rooms
for educational and community events, and 3,000 square feet of
wet laboratory space for bioscience companies.
FACT SHEET
Project:
Rocky Mountain Innosphere
Developer:
RMI/Verde, LLC
Total Project Cost:
$7.2 million
URA participation:
Kaufman & Robinson
Construction is underway of a new 10,000-square-foot
building for existing business, Kaufman & Robinson, Inc.(KRI).
Capitalizing on the opportunity to expand their operations on a
nearby vacant parcel, KRI is using tax increment financing to fund
their expansion, integrate green building techniques, and improve
street and stormwater infrastructure along Blue Spruce Drive.
Financing for the project will come from a loan from the City of Fort
Collins to the URA in the amount of $269,000.
The project allows a viable, growing business to build a new facility
with sustainable features, expand their primary employment and
retain jobs. KRI is leading by example by incorporating many green
building methods in the new construction and utilizing water con-
servation technology in their manufacturing process.
FACT SHEET
Project:
Kaufman & Robinson, Inc.
(KRI®)
Developer: KRI
Total Project Cost:
$1.6 million
URA participation:
$269,000
Project Location:
1330 Blue Spruce Dr.
Completion Date:
Spring 2011
JAX
Local outdoor outfitter, Jax Mercantile, applied for URA
funding to assist with an expansion project in spring 2010. They
completed the project just six months later; it was the first com-
pleted project in the North College Urban Renewal Area in three
years. The expansion project increases their retail capacity by 25
percent, allowing for more product lines and amenities for custom-
ers. The URA participated by escrowing the funds needed for the
local street improvements associated with the expansion, as well
as the street design of the adjacent Jerome Street and its future
street oversizing costs. JAX held its grand opening in late Novem-
ber to showcase the improvements and additional space.
FACT SHEET
Project:
JAX
Developer: JAX
Total Project Cost:
$1.2 million
URA participation:
$172,000
Project Location:
1200 N. College Ave.
Completion Date:
November 2010
$172K
ROAD ImpROVEmENTS
jEROmE ST. & COLLEGE AVE.
$50K
$30K
$120K $10K
$59K
uTILITIES,
CuRb GuTTERS,
Habitat for Humanity
In 2010, the Fort Collins Habitat for Humanity received approval
for URA funding to help purchase four single-family lots within the
Union Place development. At the time of this publication, construc-
tion details have not been determined, although all partners are
interested in moving forward in the near future. For updates on this
and all projects within the Fort Collins Urban Renewal Authority,
visit renewfortcollins.com.
Policies and Procedures
In 2010, the URA Board and staff streamlined the URA Policies
and Procedures process.
The easy to follow, updated documents make applying for URA
support even more user-friendly. The Policies and Procedures doc-
ument, as well as the Step-by-Step process (as shown on right),
encourages interested investors to participate in the URA applica-
tion process and provides an improved decision-making tool for
the URA Board.
The Urban Renewal Authority is excited to partner with develop-
ers, businesses, property owners and investors to revitalize the
North College Urban Renewal Area, and other areas of town,
where the need for redevelopment exists..
RenewFortCollins.com
—URA projects and updates, just a click away
The URA made significant revisions to its website in 2010 in order
to showcase the amazing work in the North College Plan Area.
Authority administrators refreshed the site to increase the visibil-
ity of the URA and its mission to stimulate long-term investment
and redevelopment in targeted areas for economic vitality. The site
chronicles the progress of approved projects. It also serves as a
cache of official Urban Renewal Authority documents.
RenewFortCollins.com serves as the main information hub for de-
velopers, real estate brokers, the media and general public for all
things Fort Collins Urban Renewal Authority.
What’s Next? Midtown Existing Conditions Survey
A Midtown Redevelopment Study was completed by the City of
Fort Collins in 2010 to identify the current conditions of land use
and ownership, and to offer potential redevelopment scenarios
on College Avenue, between Prospect and Harmony Roads. The
study has several recommendations and action items for moving
forward. First: prepare an existing conditions report by the Urban
Renewal Authority to evaluate any finding of blight and establish a
basis for the formation of a plan area.
The Urban Renewal Authority staff will begin this process in the first
quarter of 2011.
Fort Collins Urban Renewal Authority
Christina Vincent, Redevelopment Program Administrator
300 Laporte Ave.
Fort Collins, CO 80522
970.416.2294
cvincent@fcgov.com
renewfortcollins.com
*Based on availability of 6-month calendar
uRA board meeting scheduled* once
Redevelopment AGmT is negotiated
Submit uRA application
Pls. allow 2 weeks for iterations
Staff review
Final submittal
Pls. allow 4 weeks for completion
Financial analysis “but For” test
7471 Underwriting Services for 2013 Tax Increment Revenue Bonds Page 30 of 32
7471 Underwriting Services for 2013 Tax Increment Revenue Bonds Page 32 of 32
"
! " "
! " "
7471 Underwriting Services for 2013 Tax Increment Revenue Bonds
Page 31 of 32
Based on determination of eligible costs
Staff recommendation
“CAG” Citizen Advisory Group meets the 1st Thursday each month
CAG meeting = project introduction
2nd CAG meeting = recommendation
7471 Underwriting Services for 2013 Tax Increment Revenue Bonds Page 29 of 32
SIDEWALK
SITE
pREp
STORmWATER
DRAINAGE &
DETENTION
CONSERVATION
WATER SYSTEm
GREEN
buILDING
FEATuRES
7471 Underwriting Services for 2013 Tax Increment Revenue Bonds Page 28 of 32
$2.8 million
Project Location:
320 E. Vine Dr.
Completion Date:
December 2010
$319K
$350K
$234K
WILLOX LANE
pubLIC ImpROVEmENT
LANDSCApING
upGRADES
GREEN buILDING
LEED CERTIFICATION
CONSTRuCTION
COSTS
mASON ST.
CONSTRuCTION
& INFRASTRuCTuRE
SuSTAINAbLE
GEOTHERmAL,
LEED, LIGHTING,
STORmWATER
SITE
ImpROVEmENTS
FACADE/
WINDOWS/
ROOFING
LAND ACquISITION
& SHARED DETENTION
SITE pREp
$1.295m
$908K
$299K
$520K
$250K
$40K
$781K
7471 Underwriting Services for 2013 Tax Increment Revenue Bonds Page 27 of 32
DEmOLITION SITE CLEANup WETLANDS mITIGATION
& ENHANCEmENT
CONTINGENCY
GATEWAY
LANDSCApING/
pEDESTRIAN
CONNECTION
ON-SITE uTILITIES
$1m
$2.8m
$1.76m
$366K
$322K
$300K
$1.4m
OFF-SITE STREET
INFRASTRuCTuRE
COLLEGE/WILLOX
INTERSECTION
GRApE ST./NORTH
SOuTH CIRCuLATION
$105K
SEWER EXpANSION
7471 Underwriting Services for 2013 Tax Increment Revenue Bonds Page 26 of 32
VINE DR.
CONIFER ST.
Valley Steel
Union
Place Habitat for
Humanity
North College
Marketplace
Kaufman &
Robinson, INC.
Jax Mercantile
Rocky Mountain
Innosphere
7471 Underwriting Services for 2013 Tax Increment Revenue Bonds Page 25 of 32
is only for areas that have been designated under an adopted subarea
plan as being appropriate for the C‐S District.
Vacant Land in the NC Urban Renewal Area
Based on 2010 Buildable Land Inventory
The Community Commercial ‐ North College District is for fringes of
retail/commercial core areas and corridors. This District is intended for
moderate intensity uses that are supportive of the commercial core or
corridor, and that help to create a transition and a link between the
commercial areas and surrounding residential areas. This designation is
only for areas identified for its application in the North College Corridor
Plan.
The Industrial District is intended to provide a location for a variety of
work processes and work places such as manufacturing, warehousing
and distributing, indoor and outdoor storage, and a wide range of
commercial and industrial operations. The Industrial District also
accommodates complementary and supporting uses such as
convenience shopping, child care centers and housing. While these
Districts will be linked to the City's transportation system for multiple
modes of travel, some may emphasize efficient commercial trucking
and rail traffic as needed. Industrial and manufacturing processes used
in this District may, by necessity, be characteristically incompatible with
residential uses.
The Medium Density Mixed‐Use Neighborhood District is intended to
be a setting for concentrated housing within easy walking distance of
transit and a commercial district. Secondarily, a neighborhood may also
contain other moderate‐intensity complementary and supporting land
uses that serve the neighborhood. These neighborhoods will form a
transition and a link between surrounding neighborhoods and the
commercial core with a unifying pattern of streets and blocks.
Buildings, streets, bike and walking paths, open spaces and parks will
be configured to create an inviting and convenient living environment.
7471 Underwriting Services for 2013 Tax Increment Revenue Bonds Page 13 of 32