HomeMy WebLinkAboutPACKET Town Board Study Session 2010-03-09FILE 49 N<rEKIN>' STUDY SESSION TOWN BOARD Tuesday, March 9, 2010 5:00 p.m. - Dinner 5:30 p.m. - Meeting Rooms 202 & 203 170 MacGregor Ave. AGENDA 1. Park Theatre Mall Fee Waiver Request. 2. Miscellaneous. NOTE: The Town Board reserves the right to consider other appropriate items not available at the time the agenda was prepared. /1 .
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Working Session March 9'h, 2010 5:30pm Agenda Welcome - Mayor Pinkham Introductions Town Officials ... Name & Position with Town Business Owners ... Name & Business Other(s) Working Session Topic Overview - Dana Kortokrax October 19th Park Theatre Mall Fire Disaster - Loss of Destination Businesses - Sales Tax Revenue Loss - Job Loss & Employee Impact Business Disaster Sales Tax Recovery Plan (BDSTR) Proposal - Key Compone Proposal Component Discussion - Town Business Fees & Regulations Waivers - Mayor Pinkham Notes: Proposal Component Discussion - Sales Tax Revenue Rebate Program - Dana Kortokrax - Exhibits - Sales Tax Revenue Recovery & Investment Analysis Exhibit Notes: Proposal Component Discussion - Single Point of Accountability/Contact at Town Hall - Robin Parker Notes: Summary of Agreement & Next Steps - Mayor Pinkham Notes: Business Owners Contact Information: Dana L. Kortokrax, 970-631-9925, dkortokrax@aol.com Robin Parker, intriqueEP@aol.com
TOWN OF- E5TES I?Alu<L 92 ) Ad#ninistrition :tri? Memo TO: Honorable Mayor Pinkham Board of Trustees From: Town Administrator Halburnt Date: March 4, 2010 RE: Park Theater Mall Fee Waivers Background: At the 1/12/10 town board meeting, the town board was considering waiving business license fees for businesses completely destroyed by the Park Theater Mall fire. Paul Fishman approached the board and requested the item be tabled because the businesses had organized and wanted to approach the board with a request for more waivers than just business licenses. Mayor Pinkham, Trustee Eisenlauer and I met with the businesses on 1/22/10 to hear their proposal for waivers, which is attached. The PTM group presented this information to the Community Development Committee on 2/4/10. The CDC asked for the whole board to hear the request before you tonight. Minutes from both the town board meeting and CDC meeting are attached. Staff prepared the following information in response to PTM request: 1. We have no problem appointing one contact. 2. Sales tax rebates are typically used by Colorado communities as an incentive to bring in big business that may provide jobs or revenues to the community. We contacted both DOLA and CML, which had no prepared information on sales tax rebates. I emailed the Colorado Managers' List Serve to ask how communities used sales tax rebates. The communities that responded indicated they used sales tax rebates to reimburse big businesses that put in public infrastructure. The businesses made an impact to the towns by providing jobs or revenue to the town. 3. a. The financial impact is $2600 to the town's budget to waive business license fees for 13 businesses. Page 1
, ) b. Waiving permit fees estimate breakdown from the building department: Sign Permit Fees $ 675.00 Building Permit Fees $ 4,505.50 Plan Review Fees $ 2,928.55 Certificate of Occupancv $ 700.00 Total $ 8,809.05 Estimates are based on 16 possible tenants and do not include the construction of the new building, only tenant finish spaces. Sign permit fee is 75.00 per sign. If the mall is reconstructed similar as before there would be possibly 2 businesses fronting on Elkhorn Avenue, 3 possible Mall signs, 2 businesses fronting on Rockwell Street, and maybe 2 business impacted by the Moraine Ave. entrance. The stores located inside the access controlled (lockable) mall do not require permits. Building permit fees are based on the valuation of the proposed project. A simple tenant finish may run 10,000 to 100,000 for a full service restaurant. The estimate is based on 1 restaurant (100,000), 1 limited ice cream type of business (60,000), 1 hair salon (30,000), and the rest retail establishments. Each new space will be requiredto have a Certificate of Occupancy (50.00). Building Permit Fees; 100,000 = 993.75, 60,000 = 713.75, 30,000 = 441.75, and (13) 10,000 = 181.25 Plan Review Fees are 65% of the building permit fee. Plan Review Fees; 100,000 = 645.94, 60,000 = 463.94, 30,000 = 287.14, and (13) 10,000 = 117.81 c. If they want space in the CVB lobby, the LMD can offer them 11 x17 space on their community board for free because they don't sell space on this board. d. We have no problem working with the property owner on an appropriate sign with information about the business. e. We have no problem waiving utility deposits as a courtesy for these businesses. 4. Once demolition is completed, the property will be fenced off at the perimeter. We do not anticipate that the general public will be able to access the property. 5. Should the board decide to grant fee waivers, staff recommends extending the same waivers to all businesses. 43
Town Board Regular Meeting Minutes 1/12/10 i. j BUSINESS LICENSES FEE WAIVER FOR PARK THEATER MALL BUSINESSES. Clerk Williamson stated during discussion held by the Estes Valley Partners for Commerce with the businesses destroyed by the fire, it was suggested the Town may consider waiving 2010 business license for businesses that were destroyed. Several other neighboring businesses have been affected by the fire and some sustained significant water and smoke damage. Staff requested direction from the Town Board on what businesses would qualify for the waiver, i.e. destroyed and/or affected, definition of affected businesses and for what years the licenses would be waived. Discussion was heard amongst the Board: one time waiver for those businesses destroyed in the fire for 2010; should licenses be waived in 2011 for businesses that are closed in 2010 and relocate in 2011; businesses directly adjacent to the mall should be included for 2010 fee waiver; and the criteria for waiving the fee should be clearly defined. Paul Fishman/Town citizen and representative of the mall tenants, requested the Town Board postpone a decision on the issues. The tenants are meeting to establish an itemized proposal on what they would like the Town Board to consider. He stated the businesses that were not able to reopen in 2009 (scrapbooking store, Copper Penny, and Rocky Mountain Traders) should be included in the fee waiver discussion. C \i After further discussion, the item was continued until the tenants of the mall can bring a proposal forward to discuss with Staff and present to the Community Development Committee in February. Community Development Committee Meeting Minutes 2/4/10 PARK THEATER MALL FEE WAIVER REQUESTS. Town Administrator Halburnt said that at the January 12, 2010 Town Board meeting, the Trustees considered waiving the business licensing fee for businesses affected by the Park Theater Mall fire. At that meeting Paul Fishman, owner of 14ers Caf@, approached the Board and asked them to delay their decision until they could hear additional requests from the Park Theater Mall business owners. A subcommittee comprised of Mayor Pinkham, Administrator Halburnt, and Trustee Eisenlauer met with the merchants and informed them that their next step would be to bring their requests to the Community Development Committee for discussion. Dana Kortokrax, owner of Home for the Holidays and spokesperson for the Park Theater Mall merchants, reviewed a list of proposals that were compiled by business owners affected by the Park Theater Mall fire related to assisting them in getting their
businesses back in operation. The proposals include: designating one person as a point of contact for communication and all issues related to the fire; implementing a sales tax rebate program that would allow businesses that have reopened and resumed collecting sales tax to receive a rebate of a percentage of the Town sales tax they collected; a temporary waiver of fees for 2010 and 2011 for business licenses, permit fees, visitor center advertising space to notify the public of the status of affected businesses, signs, and deposits on utilities; the construction of a temporary walkway to connect to the Riverwalk and provide safe access through the construction area; and to expedite the reconstruction of the Park Theater Mall by waiving construction related fees. Discussion followed and is summarized: the appointment of an appropriate staff point of contact would be determined depending on final outcome; dislike the idea of a sales tax rebate; what is the role of Town government when it comes to helping private businesses; Park Theater Mall is private property; the Town should create a disaster relief program; private insurance does not cover all losses related to the fire or costs to reestablish business; proposals have monetary implications; look for alternative to a sales tax rebate; possibly a donation instead of a sales tax rebate; and everyone is sympathetic to the plight of these business owners. Paul Fishman, 14ers Caf@, stated that the Mall tenants operated established businesses that had been collecting and paying sales tax for many years. He said the community is affected by not having these businesses up and running and said the Town currently i , invests in the community by using money from the general fund to support local non- profits through Community Service Grants and asked for an investment in the community by supporting a sales tax rebate to help reestablish these businesses. Sharon Seeley, owner of the Park Theater Mall, said she sees this as a time for the community to come together in a positive way to recover from this tragedy. Town Administrator Halburnt read a letter from Charley Dickey, Town resident, into the record. In his comments, Mr. Dickey expressed opposition to the Town and its residents taking on the financial burden of rebuilding businesses affected by the fire. The Committee requested that a separate Town Board Study Session be scheduled, possibly on February 23, 2010, to continue discussion of this topic with the full Board.
Park Theatre Mall Tenants Proposal January 22, 2010 The Town, Park Theatre Mall Tenants and Landlord recognize that there are 13 viable businesses who were devastated due to the fire on October 19, 2009. All parties acknowledge the negative economic impact on the community caused by such fire and the resulting aftermath. In order to counter the negative impact, the businesses affected would like to partner with the Town in order to reopen as soon as possible. The following is a list of Proposals for the Town's consideration. 1. Point of Contact: We request that one person be responsible to follow through with any proposals agreed upon between the Town and the Business Ownerd. The person in this position would also be accountable to communicate any and all issues that may arise and work to solve them. 2. Sales Tax Rebate: We feel that to help us reestablish our businesses that a Tax Rebate of 75% the first year, and 50% the second year would be essential to getting us successfully reopened. The two year period would commence the day the business reopens and the last date to qualify for the Tax Rebate program would be December 31, 2011. 3. Temporary Waiver of Fees 2010 or 2011: a. Business Licenses. b. All Permit Fees such as: signs and internal building. c. Visitor's Center ad*ertisement space for notifying the public about our status. d. Signs at the site notifying the public of our status. e. Deposit on utilities. 4. Construct a Temporarv Walkwav: Once the site is deemed safe, build a temporary walkway to connect the River Walk and allows us to have signs as mentioned above. 5. Expedite the Reconstruction of the Park Theatre Mall To waive all fees involved in such construction. We understand that until a plan has been submitted that this particular item may be premature. In closing, we feel due to insurance issues, high rents, the growing cost of inventory, and remodeling that the success of this proposal is necessary. Thank you for your time and consideration. We look forward to participating in this process with you. Sincerely, Park Theatre Mall Businesses
Park Theatre Mall Businesses Devastated by the Fire 14 ers Cafe (8 years) Hiking Hut (15 years) Home for the Holidays (4 years) Intrigue Gift Shop (40 years) Last Outpost (4 years) Madame Vera (23 years) Memories Photos (20 years) Mountain Blown Glass (3 years) Mountain Memories Scrapbooking (2 years) Musicbox Collection (22 years) Spectrum (35 years) Wynbrier (38 years) Park Theatre Mall (Built in 1915, Shopping area since the 1950s.) (Years in Business were estimated and not confirmed with each business owner.)
Estes Park - Business Disaster Sales Tax Recovery (BDSTR) Proposal Disaster Assistance Provided Estes Park reduces a business 's tax burden over a period of 24 months to allow that business to successfully reestablish itself at a new location or to re-open at it's original location after a of period of closure. Kev Components: a.) Qualification Criteria: a business currently collecting and paying sales tax in Estes Park is destroyed in a man-made or natural Disaster (through no fault of their own) and can no longer operate their business without relocating or closing for a significant period of time due to the destruction caused by the Disaster. b.) Qualification Period: up to 24 months directly following the last sales tax period City Sales Tax was paid prior to the Disaster and business closure. c.) How it is Administered: The Businesses City Tax Burden is reduced for the first 12 month period by 75% and the second 12 month period by 50% in the form of a monthly rebate. City Taxes must be collected and paid according to current Tax Code and deadlines. Rebate is paid 90 days in arrears and is discontinued immediately if the Business is terminated. d.) The Goal and Benefit to Estes Park: is to assist established Businesses in reopening and resuming City Sales Tax Collection as soon as possible after a Disaster and to remain in business long after the Rebate period. e.) Risks and Costs: This Program is designed to insure Tax Revenues paid in are always in excess of Tax Rebate paid out. Annual Sales City Sales Tax Sales Tax City Sales Tax Revenue $ 4% Reinvestment +/- Net Example A: Business Closes, Utilizes BDSTR Program to Re-open and Re-establish business to previous sales levels Business Disaster - Business Closure $ 400,000 $ 16,000 n/a $ (16,000) Year 1 - Relocate Business Utilizing BDSTR $ 345,000 $ 13,800 $ 10,350 $- 3,450 Year 2 - Re-building Business w/BDSTR $ 350,000 $ 14,000 $ 7,000 $ 7,000 Year 3 - Re-established $ 365,000 $ 14,600 $ -$ 14,600 3 Year - BDSTR Return $ 17,350 $ 25,050 Year 4 - Mature Business $ 385,000 $ 15,400 $ -$ 15,400 Year 5 - Well Established $ 400,000 $ 16,000 $ -$ 16,000 5 Year - BDSTR Return $ 17,350 $ 56,450 Example B: Business Closes, Utilizes BDSTR Program to Re-open and Re-establish business to higher sales levels Business Disaster - Business Closure $ 200,000 $ 8,000 n/a $ (8,000) Year 1 - Relocate Business Utilizing BDSTR $ 175,000 $ 7,000 $ 5,250 $ 1,750 Year 2 - Re-building Business w/BDSTR $ 195,000 $ 7,800 $ 3,900 $ 3,900 Year 3 - Re-established $ 205,000 $ 8,200 $ -$ 8,200 3 Year - BDSTR Return $ 9,150 $ 13,850 Year 4 - Mature Business $ 205,000 $ 8,200 $ -$ 8,200 Year 5 - Well Established $ 205,000 $ 8,200 $ -$ 8,200 5 Year - BDSTR Return $ 9,150 $ 30,250