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HomeMy WebLinkAboutMINUTES Town Board Special Meeting 2011-06-20Town of Estes Park, Larimer County, Colorado, June 20, 2011 Minutes of a Special meeting of the Board of Trustees of the Town of Estes Park, Larimer County, Colorado. Meeting held in the Town Hall in said Town of Estes Park on the 20th day of June, 2011. Meeting called to order by Mayor Pinkham. Present: Also Present: William C. Pinkham, Mayor Chuck Levine, Mayor Pro Tem Trustees Eric Blackhurst Mark Elrod John Ericson Wendy Koenig Jerry Miller Greg White, Town Attorney Jacquie Halburnt, Town Administrator Jackie Williamson, Town Clerk Absent: Lowell Richardson, Deputy Town Administrator Mayor Pinkham called the meeting to order at 6:00 p.m. and all desiring to do so, recited the Pledge of Allegiance. PUBLIC COMMENT. Johanna Darden/Town citizen questioned whether or not the citizens of Estes Park want to support the Elkhorn Project Inc. recreational proposal for the historic Elkhorn property. She stated citizen input should be received before projects begin to establish if the public deems a project worthy to move forward prior to the Town Board committing funds, hiring consultant, etc. Blake Robertson/ Town citizen brought House Bill 11-1031 to the attention of the Board. The bill would allow the creation of creative districts within a local government to create a hub of economic activity to help an area become an appealing place to live, visit, and conduct business. This would allow the business to apply for grants through the economic development council. TOWN BOARD COMMENTS 1 LIAISON REPORTS. Trustee Ericson stated SOPA has improved the website for the performing art theater. The TVC will provide a review of the current progress to the Town Board at the upcoming Town Board Study Session. Trustee Miller commented the request for visitor guides via mail have decreased while the online requests continue to increase. Mayor Pinkham read a letter from Park R-3 School District Superintendent Linda Chapman in support of the Elkhorn Project Inc. redevelopment of the Elkhorn Lodge property. He stated Estes continues to have additional competition from other ski resort communities that are developing their summer month tourist season. TOWN ADMINISTRATOR REPORT. None. 1. ACTION ITEMS: Board of Trustees — June 20, 2011 — Page 2 1. APPROVAL OF RTA APPLICATION PREPARED BY ELKHORN PROJECT INC. Frank Theis/Elkhorn Project Inc. (EPI) provided a brief overview of the application that would address economic sustainability within the valley and provide a year-round economy. He stated the application submittal requires the Town to spend no money upfront and all commitments within the application are nonbinding. If the application moves forward in the process, the Town would pay for a third party economic impact analysis of approximately $50,000 to $70,000. The Town could change its funding commitments and even back out of the project at anytime, including the development stage of the project. The nature and costs associated with the project would remain set once the application has been submitted. Mr. Theis/EPI stated the broad based public input process would include presentations to the Association of Responsible Development, Estes Area Lodging Association, Partners for Commerce, downtown businesses and neighbors of the project. Formal public input would continue through the extensive planning process that would take place for the development plan, rezoning, and annexation. Curt Gleaves/EPI commented the Board has been presented with a nearly complete application with a few elements to be finished. The jobs analysis has been included with the current draft and would be updated with wage data as required by the RTA application. The new MOU includes changes that were discussed with Attorney White, staff and changes made based on comments received at the last meeting. Trustee Blackhurst stated concern the application includes the Town providing over $2 million in improvements and a $7 million unsecured loan for a private project. He stated the Town does not have the funds available for either request and has public improvements that need to be completed such as deteriorating roadways. The water rights lease would be between EPI and the Town with EPI reselling the water to the ski operator for a profit. He stated discomfort with submitting an application with funding options that are not realistic or possible and he could not support the current application. Mayor Pro Tem Levine agreed the Town does not have $7 million to loan for the project. Mr. Gleaves stated the Town has $21 million in unrestricted funds available from which a loan could be provided to the project and secured by the PIF fees of 7.7% on ticket sales at 3% interest for 10 years. He noted the Town has loaned funds to the Housing Authority from the Enterprise Funds, Catastrophic Loss and General Fund. Additional collateral could be used to secure the loan if required. Trustee Miller requested EPI develop the project through other sources such as bonding. The application if approved would receive RTA funds similar to EPURA funding and should be able to bond to pay for infrastructure and costs. He would not support with the Town funding infrastructure improvements or a loan. One of the application requirements is the project could not be funded without the RTA funds. A commitment by the Town for $10 million in funding should be voted on by the citizens for them to consider a property or sales tax increase. EPI has looked at and continues to look at bonding; however, the cost of bonding would be more expensive. A loan would allow the project to be completed quicker and allow the project to begin collecting the tax increment. There needs to be some commitment from the Town in the project to make the application stronger. The project would provide economic development that would bring a 10% increase in sales tax to fund needed improvements to town infrastructure. Board of Trustees — June 20, 2011 — Page 3 Kimberly Campbell/EPI commented the bulk of the Town funds being requested for infrastructure improvements would already be spent by the Town on the performing art theater. EPI would request those funds be transferred to the Elkhorn project if the theater moves to the site. A commercial loan is not viable at this time and a loan from the Town would allow the project to be developed in three years. Mr. Theis/EPI the improvements need to be financed at an early stage and options include bonding, private lending, and grants; therefore, the MOU would be rewritten to identify all options and remove the specific dollar amount for Town funding. Trustee Koenig expressed the Board's concern that a loan is not feasible and would like to present an application to the State that is accurate and not provide false information on a loan commitment from the Town. Trustee Miller emphasized the improvements committed to SOPA were on Town owned property and would provide needed improvements to the fairgrounds. Trustee Blackhurst stated the Town does not have the funds to make improvements for a private development, and stated concern with the leasing of 1 acre of land for $1 a year. Trustee Elrod stated he could not approve an application that was not complete, and continues to have issues with spending Town funds if the application moves forward to the third party economic review. Those speaking against the application included Johanna Darden/Town citizen, Dick Brad/Town citizen, Will Farrell/Town citizen, John Spahnle/Town citizen, Bill Darden/Town citizen, Eileen Allbritten/Town citizen, and Becky Glowacki. The project would not benefit the town and would negatively impact wildlife and environment. The project would more than likely have limited use in the summer season. The ski activity would not make Estes Park a resort. The Hidden Valley ski hill was used by the locals and did not attract visitors. The neighbors expressed concerns their property values would be affected by the development adjacent to the neighborhood. The proposal does not have a sound financial statement and would not increase sales tax by a substantial amount. The neighborhood stated concern with the increase in noise and traffic. Concern was raised on the amount of public money spent on a private project that may not be successful. Those speaking in favor of the application included Jim Tawney/Town citizen, Stan Black/Town citizen The potential of the proposed project are substantial and the rewards outweigh the risk. A public -private partnership would increase the economic stability of the community. Melinda Merrill/ Estes Park Science Institute would model the institute on the Monte Verde model to partner with universities to establish research work in the park, a greenhouse with sustainable elements and work with school students. Verd Bailey/Town citizen understands the property would be developed in the future. He stated he was not opposed to a public -private partnership; however, has concerns on the negative impact of additional traffic and noise. Justin Dunn/Town citizen has started a new business on the property and stated concern for the individuals that have been working to save the Elkhorn Lodge and improve the property if the proposal is successful. The Town Board requested EPI come to the Town Board meeting on June 28, 2011 with a complete application, land lease, water lease, MOU with no specific dollar amount provided by the Town, and remove the loan. The Board does not want to submit an application to the State that includes a $7 million Board of Trustees — June 20, 2011 — Page 4 loan. Trustee Ericson suggested EPI have conversations with the neighbors to address issues such as screening from the project. Trustee Elrod questioned if the Town owned property was used for profit would it be added back to the tax role. Trustee Blackhurst would like the MOU removed from the application. Attorney White clarified the Town would not be entering into a public -private partnership in the legal sense. The Town may loan money to a private entity so long as there is a public benefit; however, the Town may not have ownership in the project or hold any equity in the project. It was moved and seconded (Elrod/Miller) to continue the RTA application and MOU to the June 28, 2011 meeting, and it passed unanimously. 2. MEMORANDUM OF UNDERSTANDING WITH ELKHORN PROJECT INC. FOR RTA PROJECT. Continued to the June 28, 2011 Town Board meeting. Whereupon Mayor Pinkham adjourned the meeting at 9:05 p.m. William C. Pinkham, Ja kip Williamson, Town Clerk ayor