CITY COUNCIL AGENDA MEMORANDUM

Transcription

1 City and County of Broomfield, Colorado CITY COUNCIL AGENDA MEMORANDUM To: From: Prepared by: Mayor and City Council George Di Ciero, City and County Manager Kevin Standbridge, Assistant City and County Manager for Community Development Meeting Date Agenda Category Agenda Item # September 12, 2006 Council Business 9(f) Agenda Title: 1. Public Hearing on Proposed Palisade Park Metropolitan Districts Nos. 1 and 2 Service Plans Property Location: Northeast Corner of Colorado State Highway 7 (S.H. 7) and County Road 7 (C.R. 7). Applicant: Kevamra, LLC Following and Subject to the Results of the Public Hearing 2. Consideration of Resolution No Approving the Service Plan for the Proposed Palisade Park Metropolitan District No Consideration of Resolution No Approving the Service Plan for the Proposed Palisade Park Metropolitan District No. 2. Summary A PUD Plan for the Palisade Park project was approved by the City Council on February 14, The PUD Plan provides for a mixed use development on 155-acres which will include up to 1,500,000 square feet of commercial uses and up to 1,100 dwelling units. The project is located at the northwest corner of State Highway 7 and Weld County Road 7. The developer, Kevamra LLC, wishes to create two metropolitan districts to issue bonds in order to finance the costs of public infrastructure for the project. The Service Plan for the metropolitan districts have been submitted to Broomfield for review. Proposed District No. 1 includes the residential areas of the project and proposed District No. 2 includes the commercial areas. The project is within the North Park West Urban Renewal District The total amount of bonds authorized by the Service Plan is $10,260,000 for District No. 1 and $18,300,000 for District No. 2 for a total proposed authorized debt of $28,920,000. A memorandum from Hahn Smith and Walsh, Broomfield's Special Bond Counsel, is attached which states that the, "bonds or other obligations issued by the District will never constitute obligations or debt of the City and County of Broomfield. A memorandum from RBC Capital Markets regarding the proposed Service Plans is also included. Notice of the Public Hearing has been published. Prior Council Action The City Council approved the Palisade Park PUD Plan on February 14, Financial Considerations The Palisade Park PUD Plan is consistent with Broomfield s adopted Long Range Financial Plan. Alternatives Pursue other financing mechanisms for the infrastructure improvements. Proposed Actions/Recommendations Hold the public hearing as scheduled; and Following and subject to the results of the public hearing That Resolution No be adopted. That Resolution No be adopted.

2 Palisade Park Metropolitan Districts Service Plan Page 2 PALISADE PARK PROJECT SUMMARY The approximately 155-acre property is located at the northeast corner S.H. 7 and C.R. 7. The following vicinity map shows the property s location. Palisade Park is a 155-acre, mixed-use development that incorporates pedestrian-oriented retail shops, restaurants, offices, a diverse mix of residences, and a hotel organized around a traditional village green. The PUD incorporates the following items: A variety of residential building types: four types of single-family detached houses, three types of single-family attached houses, multi-family units, and mixed-use units located over ground-level retail; Partial or full restoration of the existing Weldford Barn; Incorporation of a 12-acre central park to link uses and form the core of the development; and Development of a trail system that connects the region to the key site features. PALISADE PARK METROPOLITAN DISTRICTS The Palisade Park Metropolitan Districts are proposed to be formed by a vote of the property owners within the proposed district on November 7, The purpose of the Palisade Park Metropolitan District is to finance the construction of public improvements for the Palisade Park project. Approval of a Service Plan by Broomfield is a prerequisite to the November election. Because of Colorado election laws, if the proposed Service Plans are not approved by the City Council at this meeting, the applicant will have to wait until November, 2007 for an election to create the districts. The applicant is proposing District No. 1 to serve the primarily residential area of Palisade Park. The proposed District No. 2 will serve the primarily commercial area of the site.

3 Palisade Park Metropolitan Districts Service Plan Page 3 The proposed district boundaries include the property owned by Kevamra. The District s boundaries are provided below. District 1 District 2 Metropolitan Districts are legal entities separate and distinct from municipal governments. They have their own Board of Directors, legal responsibilities and financial obligations. However, state statutes provide that municipalities in which Metropolitan Districts are located must approve District Service Plans and any future amendments. Service Plans define the services and improvements to be provided by the District. The proposed Palisade Park Metropolitan District service plans provide that the Palisade Park Metropolitan Districts may provide for the design, acquisition, construction, installation and financing of water, sanitation, street, storm water drainage, park and recreation, transportation, and mosquito control improvements and services. Generally, the District will be designing, financing and constructing the public infrastructure included in the PUD Plan for Palisade Park. There is not sufficient infrastructure in the area to accommodate the approved Palisade Park development. The developer must install the public sewer and water facilities, stormwater drainage facilities, streets and other public facilities to accommodate the projected need. The City and County of Broomfield will not be constructing this infrastructure necessary to accommodate the Palisade Park development, nor will any other governmental entity. The developer is proposing the metropolitan district as the entity to finance and construct the necessary public improvements. The proposed service plans for the metropolitan districts include revenues generated from a mill levy imposed by the proposed districts. It is likely that the developer will propose, at a later date, a development and reimbursement agreement to receive a portion of the sales tax generated within the project. If such an agreement is approved, the revenues from a sales tax reimbursement agreement would be proposed to be used to increase the amount of debt issued for the proposed Palisade Park Metropolitan District No. 2.

4 Palisade Park Metropolitan Districts Service Plan Page 4 With this in mind, the authorized debt for District 2 is proposed to be $18,300,000. If Broomfield does not approve a development and reimbursement agreement, the limit on debt will be $6,570,000. The following language has been included in the service plan to require that if the debt to be issued exceeds $6,570,000, the Service Plan modification must be approved by the City Council. "The District shall have the authority to obtain voter approval for the incurrence of debt in the total principal amount of Eighteen Million Three Hundred Thousand Dollars ($18,300,000) ( Debt Authority ). Voter approval of debt in excess of the Debt Authority shall be considered a material modification of the Service Plan, which shall be subject to the statutory procedures set forth in Section , C.R.S. and Broomfield's review of all ballot questions. Notwithstanding the Debt Authority, the District shall not issue bonds in excess of Six Million Five Hundred Seventy Thousand Dollars ($6,570,000) until such time as this Service Plan is modified to reflect the terms of an approved revenue sharing agreement between the District and Broomfield." PUBLIC INFRASTRUCTURE Substantial improvements will need to be made in, and adjacent to, the Palisade Park development. Improvements to SH 7, Weld County Road 7, Huron Street and Lowell Lane are necessary for the project. Extending and installing water and sanitary sewer lines and financing a portion of a sewer lift station, parks, landscaping, signage and recreational facilities are also responsibilities of the development. Preliminary estimates for public infrastructure improvements total $14,994,475. Improvement District 1 District 2 Total Offsite Sanitary Sewer $1,609,053 $866,412 $2,475,465 Onsite Sanitary Sewer $543,888 $543,888 Offsite Water $156,405 $104,270 $260,674 Onsite Water $493,917 $493,917 Weld County Road 7 $474,469 $591,929 $1,066,398 Lowell Lane $853,514 $853,514 Huron Street $438,234 $864,702 $1,302,936 Colorado Highway 7 $702,521 $1,822,686 $2,525,207 Internal Streets $484,097 $484,097 Storm Drain System $456,769 $456,769 Park and Open Lands $1,639,556 $1,639,556 Signage and Monumentation $147,577 $147,577 Sub-Total $8,000,000 $4,250,000 $12,250,000 Capitalized Interest Fund $1,221,083 $1,055,494 $2,276,577 Cost of Bond Issuance and Other Costs $298,392 $169,506 $467,898 Unprogrammed Bond Authority $740,525 $12,825,000 $13,565,525 Total $10,260,000 $18,300,000 $28,920,000 A blight study was conducted and the North Park West Urban Renewal plan incorporating the Palisade Park site was adopted in April 2004, thereby placing the Palisade Park land under the jurisdiction of both City and County of Broomfield and the Broomfield Urban Renewal Authority (BURA). A major element of the Urban Renewal Plan is for the Authority to facilitate the redevelopment of land in the area and eliminate the blighting factors that are impediments to successful redevelopment. To this end, the approval of the proposed metropolitan districts will provide a means for the developer to provide infrastructure for the development of the site.

5 Palisade Park Metropolitan Districts Service Plan Page 5 Advisor Reviews A memorandum from Hahn Smith Walsh and Mancuso, Broomfield's Special Bond Counsel, is included as Attachment 1. It states that the "bonds or other obligations issued by the District will never constitute obligations or debt of the City and County" of Broomfield. A memorandum (Attachment 2) from RBC Capital Markets, Broomfield s financial advisor, states that the financing plan for the issuance of bonds is feasible. LONG RANGE FINANCIAL PLAN The Palisade Park project is in conformity with the adopted Long Range Financial Plan. The large amount of retail is a critical component of the revenue side of the plan. The project proposes to construct 1,500,000 square feet of commercial uses. RESOLUTION NOS AND If approved, Resolution No will approve the Service Plan for Palisade Park Metropolitan District No. 1. Resolution No will if approved, approve the Service Plan for Palisade Park District No. 2.

6

7

8

9 Memorandum TO: FROM: Charles Ozaki Deputy City and County Manager Kevin Standbridge Assistant City and County Manager Tom Wendelin DATE: September 6, 2006 SUBJECT: Proposed Service Plan Financing for Palisade Park Metropolitan District #1 (The District) We were provided with the proposed Service Plan financing information for the District. This memo addresses the development and financing as currently described in this information. The financing plan proposes an ultimate build-out of approximately 800 housing units consisting of 500 single family units and 300 multi-family units. There is an initial 38-mill levy for the District s debt service payments and an estimated maximum 5-mill levy for operations and maintenance expenses. The projected total valuation of the District at full build-out (estimated to be 2010) is $231 million ($18.4 million in assessed value). The District intends to issue approximately $9.52 million in bonds that will be issued in two series. All debt will be fixed rate and non-rated with debt service from 2007 to Both series of bonds will be issued in The first series (2006A) will be senior lien bonds issued in the amount $8.27 million with an assumed interest rate of 7.00%. The second series (2006B) will be convertible capital appreciation subordinate bonds in the amount of $1.25 million with an assumed interest rate of 8.00%. The bonds are to be used to fund construction costs, capitalized interest and the costs of issuance. The revenue available for debt service includes property tax collections from real property, specific ownership taxes and facilities fees. All of the revenues pledged to debt service are dependent solely upon the timely build-out at the projected market and assessed values per unit. Based upon the development and revenue assumptions contained in Exhibit J of the service plan, we believe that the plan demonstrates the ability to adequately discharge the debt of the District in a feasible manner. Furthermore, under the same assumptions, the financing of the project poses no adverse financial impact to the City. We believe that the financial plan is viable and poses only an amount of risk that would be considered reasonable for the development of comparable projects. Suite 2150 (303) RBC Capital Markets th Street Fax (303) Member NYSE/SIPC Denver, CO

10 RESOLUTION NO A RESOLUTION APPROVING THE SERVICE PLAN FOR PALISADE METROPOLITAN DISTRICT NO. 1 AND PROVIDING OTHER DETAILS IN CONNECTION THEREWITH. WHEREAS, the City and County of Broomfield, State of Colorado (the "City and County"), is a political subdivision of the State, a body corporate and politic, a home-rule City and County pursuant to Article XX of the State Constitution and a city and county pursuant to Sections 10, 11, 12 and 13 of the State Constitution; and WHEREAS, pursuant to the provisions of Part 2 of Article I of Title 32, C.R.S., as amended, (the "Act"), no special district shall be organized if its boundaries are wholly contained within the boundaries of a municipality, except upon adoption of a resolution of approval by the governing body of the municipality ; and WHEREAS, pursuant to the provisions of the Act, petitioners proposing the organization of Palisade Metropolitan District No. 1 (the "District") have submitted to the City and County a service plan (the "Service Plan") for the District which Service Plan is attached hereto as Exhibit A and incorporated herein by reference ; and WHEREAS, a Notice of Public Hearing regarding the organization of the District was published ii the Broonifield Enterprise oil August 23, 2006 ; and WHEREAS, the City Council of the City and County held a public hearing on September 12, 2006, regarding approval of the organization of the District and approval of the Service Plan for the District; and WHEREAS, the City Council considered the organization and Service Plan for the proposed District and all other testimony and evidence presented at the hearing ; and WHEREAS, it appears to the City Council that the Service Plan for the District and the organization of the District should be approved. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY AND COUNTY O F BROOMFIELD, COLORADO : Section 1. That the City Council hereby determines that the requirements of the Act, relating to the filing of the Service Plan for the District and organization of the District have been fulfilled and the Service Plan for the District and organization of the District are hereby approved. Section 2. That the City Council hereby finds and determines as follows : (a) There is a sufficient existing and projected need for organized service in the area to be served by the proposed District ;

11 (b) The existing service in the area to be served by the proposed District is not adequate for present and projected needs ; (c) Adequate service is not now and will not be available in the future to the aiea through the City and County or other existing municipal or quasi-municipal corporations, including existing special districts within a reasonable time or on comparable basis ; (d) The proposed District is capable of providing economic and sufficient service to the area within its proposed boundaries ; (e) The area to be included in the proposed District has and will have the financial ability to discharge the proposed indebtedness on a reasonable basis. Section 3. That in accordance with the provisions of the Service Plan, the City and County Manager and the City and County Attorney are hereby authorized to review the terms of the Districfs bond financings, which shall proceed only with the written consent of the City and County Manager and the City and County Attorney. Section 4. That this Resolution is effective upon its approval by the City Council. ADOPTED AND APPROVED this 12th day of September, (S E AL) CITY AND COUNTY OF BROOMFIELD, COLORAD O ATTEST : Mayor APPROVED AS TO FORM : City Clerk / Hahn,mith, lsh & Mancuso, P.C. -2-

12 RESOLUTION NO A RESOLUTION APPROVING THE SERVICE PLAN FOR PALISADE METROPOLITAN DISTRICT NO. 2 AND PROVIDING OTHER DETAILS IN CONNECTION THEREWITH. WHEREAS, the City and County of Broomfield, State of Colorado (the "City and County"), is a political subdivision of the State, a body corporate and politic, a home-rule City and County pursuant to Article XX of the State Constitution and a city and county pursuant to Sections 10, 11, 12 and 13 of the State Constitution ; and WHEREAS, pursuant to the provisions of Part 2 of Article 1 of Title 32, C.R.S., as amended, (the "Act"), no special district shall be organized if its boundaries are wholly contained within the boundaries of a municipality, except upon adoption of a resolution of approval by the governing body of the municipality ; and WHEREAS, pursuant to the provisions of the Act, petitioners proposing the organization of Palisade Metropolitan District No. 2 (the "District") have submitted to the City and County a service plan (the "Service Plan") for the District which Service Plan is attached hereto as Exhibit A and incorporated herein by reference ; and WHEREAS, a Notice of Public Hearing regarding the organization of the District was published iii the Broomfield Enterprise on August 23, 2006 ; and WHEREAS, the City Council of the City and County held a public hearing on September 12, 2006, regarding approval of the organization of the District and approval of the Service Plan for the District; and WHEREAS, the City Council considered the organization and Service Plan for the proposed District and all other testimony and evidence presented at the hearing ; and WHEREAS, it appears to the City Council that the Service Plan for the District and the organization of the District should be approved. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY AND COUNTY O F BROOMFIELD, COLORADO : Section 1. That the City Council hereby determines that the requirements of the Act, relating to the filing of the Service Plan for the District and organization of the District have been fulfilled and the Service Plan for the District and organization of the District are hereby approved. Section 2. That the City Council hereby finds and determines as follows : (a) There is a sufficient existing and projected need for organized service in the area to be served by the proposed District ;

13 (b) The existing service in the area to be served by the proposed District is not adequate for present and projected needs ; (c) Adequate service is not now and will not be available in the future to the aea through the City and County or other existing municipal or quasi-municipal corporations, including existing special districts within a reasonable time or on comparable basis ; (d) The proposed District is capable of providing economic and sufficient service to the area within its proposed boundaries ; (e) The area to be included in the proposed District has and will have the financial ability to discharge the proposed indebtedness on a reasonable basis. Section 3. That in accordance with the provisions of the Service Plan, the City and County Manager and the City and County Attorney are hereby authorized to review the terms of the District's bond financings, which shall proceed only with the written consent of the City and County Manager and the City and County Attorney. Section 4. That this Resolution is effective upon its approval by the City Council. ADOPTED AND APPROVED this 12th day of September, (SEAL) CITY AND COUNTY OF BROOMFIELD, COLORAD O ATTEST : Mayo r APPROVED AS TO FORM : City Clerk A / ii j i-2'2 / ' FIahnmith, Wlsh & Mancuso, P.C. -2-