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HomeMy WebLinkAboutMINUTES Town Board Study Session 2008-02-08 Town of Estes Park, Larimer County, Colorado, February 8, 2008 Minutes of a Regular meeting of the TOWN BOARD STUDY SESSION of the Town of Estes Park, Larimer County, Colorado. Meeting held at Town Hall in said Town of Estes Park on the 8th day of February, 2008. Board: Mayor Baudek, Trustees Blackhurst, Eisenlauer, Homeier, Levine, Newsom and Pinkham Attending: Mayor Baudek, Trustees Blackhurst, Eisenlauer, Homeier and Pinkham Also Attending: Town Administrator Halburnt, Deputy Town Administrator Richardson, Directors Pickering and Smith and Town Clerk Williamson Absent: Trustees Levine and Newsom Mayor Baudek called the meeting to order at 9:00 a.m. 2008 ECONOMIC OUTLOOK Town Administrator Halburnt reviewed the items (EPHA Loan Extension, SOPA Subsidy, EPURA Loan, Elkhorn Lodge Redevelopment Bypass Road, Barn Complex and Future Transportation Needs) to be discussed and requested general direction from the Board on prioritizing the requests for funding. She stated in addition to the listed items the Public Works Director has raised concerns regarding the condition of the roadways and bark beetle management. Dir. Zurn stated the Board should consider allocating 1% of the $80 million in assets per year to improve and maintain the infrastructure. Town Administrator Halburnt reviewed the General Fund projected through 2013 with a 30% fund balance identified as a target ratio in a pre-budget study session last year. Reviewed revenues, expenditures, transfers out, net cash flow for year and ending fund balance. No assumptions were made on the Local Marketing District as it relates to transfers through 2013; however, that transfer could be reduced by $800,000 to $900,000 if the LMD is passed. She also stated projections due not take into account any potential outside forces such as a recession; however, the Town did not see a decline in sales tax during the last recession. Trustee Pinkham requested this format be presented during the budget session as an aid when reviewing long term issues and projects, expenditures and funding requests, fund balances and to use as a first step in the budget process. He also suggested staff consider using a red, yellow, green scenario to identify the status of revenues and expenses. The Community Reinvestment Fund includes financing of the barn complex in its entirety and the site preparation work for the performing art theater. These expenses were to be offset by the revenue from the sale of Lot 4, Stanley Historic District. Town Administrator Halburnt reviewed the fund removing the proceeds from the sale of Lot 4, SHD, barn construction and site preparation for the theater. Trustee Homeier questioned the appropriateness of the SOPA subsidy (operations and maintenance) in this capital improvement fund. Trustee Pinkham also questioned including the subsidy in 2010 as the theater may not be operational. Available funding resources include the Community Reinvestment Fund, General Fund and Catastrophic Loss. The General Fund could contribute approximately $550,000/yr to the Community Reinvestment Fund and have a $4.08 million fund balance by 2012 or a $3.2 million fund balance with the SOPA subsidy by 2012. The budgeted fire truck could be purchased from the Vehicle Replacement Fund instead of the General Fund. The Catastrophic Fund is required by Tabor to have 3% in an emergency reserve. This fund contains additional funds, approximately $1 million, that could be borrowed for Town Board Study Session – February 8, 2008 – Page 2 funding of a project. All other fund balances are insignificant, pledged to specific resources or fixed due to bond or potential financing covenants and/or restrictions. The Board is not supportive of using the Vehicle Replacement Fund for the purchase of the new fire truck. REQUESTS FOR FUNDING Estes Park Housing Authority Loan Extension The EPHA requested the Town Board consider extending the $2.61 million loan for an additional two years. The loan was budgeted to be repaid in 2008 with $860,000 to be repaid to the General Fund. Foregoing the repayment would reduce the General Fund in 2008 from 29% to 22%. The extension of the loan would not have a direct effect on the Community Reinvestment Fund; however, the Town would be less adaptable or amenable to other opportunities and economic pressers. Options include not extending the loan repayment and require EPHA to obtain a loan to repay the Town; only require payment of the General Fund and extend the loan on the other three funds; extend the loan for all four funds at the requested two years or reduce the extension to one year and review the situation at that time. The Board supports the Housing Authority in pursuing a commercial loan; however, if it would be a hardship on the Authority the Board would consider exploring a one year extension. Supporters of the Performing Arts Subsidy and Site Preparation The Memorandum of Understanding approved by the Board between the Town and SOPA for the construction of a performing arts theater states that SOPA would raise 100% of the construction costs and operate, maintain and manage the theater. In exchange, the Town will provide the building site, $700,000 in site preparation costs contingent upon the sale of Lot 4, SHD and provide an annual subsidy of $217,000 based upon annual appropriation of the funds. If the sale of Lot 4, SHD does not materialize, SOPA would have to raise an additional $700,000 for the site preparation. The current construction cost with inflation is $5 million in 2009. Options include the termination of the MOU by the Town at the end of 2009 if 100% of the construction funds have not bee raised and/or Lot 4, SHD has not sold. SOPA representatives have discussed the option of requesting the Town to issue a bond for the construction costs. Discussion followed and is summarized: Could the construction plans be modified to accommodate the funds raised by 2009; could the demolition and site preparation be phased over the next couple of years; the MOU was needed to show the Town’s commitment to the project; the theater will not generate sales tax. Town Administrator Halburnt stated if the Board would like to consider a bond issue for the project, the issue would be taken to the electorate for a vote. Estes Park Urban Renewal Authority Loan Staff has recently determined that 2007 was the last year to collect tax increment, and therefore, EPURA has requested a short-term loan of $600,000 to complete the $1.5 million Riverwalk project currently under construction. This loan could be funded through the General Fund, Community Reinvestment Fund or the Catastrophic Loss Fund and would be paid back by the end of August. Dir. Smith stated in 2003 the EPURA Board gave priority to the completion of the west end corridor of the Riverwalk and the Board bonded for the construction. Work has begun on the last portion through the Park Theater Mall with completion scheduled for mid May. Projected income comes in monthly with the largest tax increment coming in Town Board Study Session – February 8, 2008 – Page 3 during the summer months; therefore, this would be a short-term loan to pay the contractors on time. Options include abandoning the Riverwalk project and identify alternate project(s); approve a short term loan for $600,000; reduce the scope of the Riverwalk project to save costs or require payments of any balance with Operation and Maintenance funds. Trustee Blackhurst stated the Town has benefited from EPURA and that a short-term loan to finish the Riverwalk would be appropriate. Dir. Smith stated EPURA has spent over $18 million over the past 25 years and in that time sales tax has doubled. Trustee Homeier suggested the renewal of EPURA should be added to the list of funding requests. A new EPURA would begin with no funding source immediately available. He stated EPURA was originally formed after a disaster when the Town needed immediate improvements and currently the Town is in good shape. The Board supports a short-term loan of $600,000 to complete EPURA’s Riverwalk project. Mayor Baudek called a 10 minute recess at 10:30 a.m. and resumed the meeting at 10:40 a.m. Elkhorn Lodge Redevelopment Bypass Road The developers of the proposed Elkhorn Lodge redevelopment have requested the Town contribute financially to a north-south bypass road through the property and ultimately connecting to Elm Road. This bypass has been envisioned by past Town leaders as an alternate route to move traffic through Estes Park. The developers have suggested the Town would be responsible for the road through the lower portion of the property at an estimated cost of $1 million. The developer would be responsible for the costs associated with the upper 40-acre parcel. The Town would also be financially responsible for connecting Elm Road to the development. Public Works Director Zurn has estimated the Elm Road connection at an additional $1.2 million. The developers are projecting the road to be built over a three to four year period. Options include a one lump sum payment to the developer for the road; annual payments plus interest over a four to six year timeframe subject to annual appropriations; negotiate a partial payment plus tax rebates or negotiate complete payment through tax rebates. Dir. Zurn commented the transportation study states 4,000 vehicles/day would use the bypass. The alternate route could eliminate congestion issues for 15 years. He stated the likelihood of the State funding any portion of this bypass is low; however, there may be funding through the Park Service. Dir. Joseph stated the proposed project would provide a commercial development with a pedestrian link to the lower 20 acres of prime “CO” zoned property. The proposal also contemplates parking for the retail and an additional shuttle stop. The project is phased with the residential lots developed first with the renovation of the lodge and development of the retail portion within 5 years. The developer is requesting an up- zoning to a higher density on the residential portion from 16 lots (2.5 acres) to over 55 lots. Dir. Joseph stated the visual impact of the increased density on this property would be less based on the aspect of the property. Town Administrator Halburnt stated the developers are looking for a commitment from the Town in order to finalize their finances; however, the roadway may not be built for as many as 5 years. An Annexation Agreement could include any requirements and timeframes for completion requested by the Board. Town Board Study Session – February 8, 2008 – Page 4 Comments and discussion followed: Would the developer consider payments in lieu of a lump sum; what would be the benefit to the citizens; the Town would be buying a deeded right-or-way, a financial commitment would be budgeted in 2009 if the Town agreed to move forward; complete the entire road instead of phasing. Dir. Zurn stated the Town would require the road to have curb and gutter. He also suggested a temporary connection be completed for a secondary egress from the residential lots along Elm Road. He recommends a truck lane as the grade is steep and could be a safety issue with slow moving trucks. The bypass roadway would provide increased fire protection, additional connection to downtown and RMNP, increase sales tax, additional parking, additional housing, a transportation stop and a link to downtown. The Board requested staff investigate the roadway options further and requested staff work with Attorney White on an Annexation Agreement. Further negotiations would be discussed in Executive Session. TOWN PROJECTS Barns Complex There are many financing options and build-out options for the barns complex. The approved 2008 budget has $900,000 cash coupled with a $2.6 million loan in the Community Reinvestment Fund with a repayment schedule of approximately $330,000/yr for 10 years. The 2008 budget also contemplated the sale of Lot 4, SHD, from which $600,000 would have been used to fund the project. Without the sale of Lot 4, SHD the barns complex would be delayed for one year. Financing the barns in 2010 with all available funds ($2.3 million) and financing the balance ($1.2 million) would be the best use of Town funds with a repayment schedule of $220,000/yr for 10 years. Options include building in phases as cash becomes available, various ratios of cash plus loans or taking the project to a vote, thus transferring costs to property tax increments. Dir. Pickering stated an open house for the barns complex was held recently at the Museum. He reviewed the comments heard from the public including the desire for a year-round facility that may include an ice rink, tennis courts, kid’s play area, walking track, dog shows, and miscellaneous sports. The public strongly encouraged balancing the use of the complex by shows and the public. The new complex will have an unknown economic impact including retaining current shows and possibly attracting new events. The project could be phased by building one barn now with ice underneath and come back in three to four years with phase two. Discussion is summarized: the barn complex is a community reinvestment project; there should be recreational opportunities; should commit to an ice rink and complete the entire project if financing; additional surveys to determine what the community would like to see and how to finance the building; would the community approve a tax increase to pay for the complex; the enthusiasm for the project may be lost with phasing; phasing would be fiscally responsible; should not tax citizens for a building that would be used by the visitors for half a year. The Board agreed prior to the project moving forward a citizen survey should be conducted to identify desired winter recreational activities and determine the preferred financing. Staff will prepare the survey and send a copy to the Board prior to mailing. Future Transportation Needs The 2008 budget contains approximately $200,000 for the transportation program. This number is expected to double in 2009, which could have a direct effect on the funds available for the Community Reinvestment Fund. Continuation of the program would require a reduction in the transfer to the Community Reinvestment Fund or cut funding Town Board Study Session – February 8, 2008 – Page 5 to another department or fund. Options include reduction in the hours and/or routes or eliminate the program. Staff will apply for a grant to purchase buses to reduce the cost; however, there would be a cost associated with maintaining the equipment. Trustee Eisenlauer left the meeting at 12:30 p.m. Discussion followed: Federal money may be available to finance the shuttles, purchase buses with grant funding and lease them to the bus company to maintain and grant may allow the buses to operate for a longer period of the year. Staff will apply for the grant to purchase buses and if awarded, further discussion will take place. There being no further business, Mayor Baudek adjourned the meeting at 12:35 p.m. Jackie Williamson, Town Clerk