csuralogov2
MEETING

OCTOBER 22, 2014

AGENDA

Date:

October 22, 2014

Time:

11:00 a.m.

Place

City Hall – Pikes Peak Room

107 N. Nevada Ave., Second Floor

Colorado Springs, Colorado 80903

Agenda:

1.

Approval of September 24, 2014 CSURA meeting minutes

2.

Approval of October 7, 2014 CSURA Special Meeting minutes

3.

Approval of Financial Report as of September 30, 2014 – Thuy Dam

4.

Approval of third Quarter Continuing Disclosure Report – Thuy Dam

5.

Citizens Comment Period

6.

Draft 2015 CSURA Budget – Jim Rees, Thuy Dam

7.

Quarterly Project Status Report – Jim Rees

8.

Other Matters

9.

Adjournment

Documents:

Quarterly Report — October 22, 2014

Open PDF

Activity Report — September 2014

Open PDF

Financial Statement Notes — September 2014

Open PDF

Draft Budget — October 13, 2014

Open PDF

Financial Statement — September 30, 2014

Open PDF

Interim Checks — October 16, 2014

Open PDF

THE COLORADO SPRINGS URBAN RENEWAL AUTHORITY

HELD ITS REGULAR MEETING ON WEDNESDAY JULY 23, 2014

AT CITY HALL, PIKES PEAK ROOM

107 NORTH NEVADA AVENUE, COLORADO SPRINGS, CO 80903

In attendance were:

COMMISSIONERS:

Tiffany Colvert

Merv Bennett

Valerie Hunter

David Neville

Jim Raughton

Peter Scoville

Robert Shonkwiler

Nolan Shriner

Also in attendance:

Alenna Elliott

Jim Rees

Peter Wysocki

Audience:

Anita Miller

Joel Miller

Item 1 – Approval of September 24, 2014 Minutes

Proposed changes:

Item 5, List first and last names of individuals

Change minutes to reflect that Anita Miller was not present, Mrs. Miller in audience confirms. Alessandra was present in the audience for September 24, 2014.

Item 4 of the minutes in Executive Session, include that Chair Neville recused himself from part of that session.

Motion to Approve: September 24, 2014 Minutes with changes, made by Robert Shonkwiler, seconded by Peter Scoville. Motion carries, none opposed.

Item 2– Approval of October 7, 2014 Special Meeting Minutes

Comments:

List first and last names of individuals

Motion to Approve: October 7, 2014 Minutes made by Robert Shonkwiler, seconded by Jim Raughton. Motion carried, none opposed.

Item 3– Approval of Financial Report as of September 30, 2014 – Thuy Dam, CLA

Attachment A – Financial Report, CLA

Financial report packet provided to Board, presented by Thuy

*Only comments discussed are reflected below, all detailed content items of the presentation are in attachment A.

Comments from Financial Report:

Subject: Ivywild, base for sales tax increment revenue was reset in May 2014. The revenue has not been sufficient to generate any increment yet.

Jim Rees- Just an FYI, Looking at the budget Ivywild the valuation (AV) has sky rocketed since the improvements have now been valued by the assessor, so when you look at the 2015 budget will be in far better shape.

Chair Neville- Is that speculative?

Jim Rees- No, I checked the assessor’s website.

Robert Shonkwiler- what would that increase be?

Thuy- that will be addressed when we cover the budget section.

Subject: Capital Projects: Copper Ridge Sales Tax TIF Revenue

Thuy- One point not included in this report is that the authority remitted $106,000 to the district (Copper Ridge Metro District increment) to date based on the agreement.

Subject: Vineyard: only 50% of the property tax has been collected YTD, Jim has followed up.

Jim Rees: Vineyards LLC has acknowledged that they haven’t paid yet I contacted Vince Colarelli and he is aware why it is important (covers URA admin. fee).

Robert Shonkwiler: At the end of the Vineyards development agreement there are provisions on what happens if the transactions/fundamental basis of that fails. How would one go about rescinding that development agreement? I was wondering if you can bring us a report on that next month please.

Jim Rees: You’re right there is a certain time frame and subsequent actions required.

Robert Shonkwiler: I’m not predicting that I just want to know our options are if it does fail.

Subject: Cash Sheet- North Nevada 1.9 million debt service, 1.6 million carried from 2013 equals a $670,000 short fall

Robert Shonkwiler: How much of that is carried over?

Thuy- From 2013 - $380,000 was not paid. So the cumulative shortfall is $670, 000, possibly.

Robert Shonkwiler: Is that just on the “A” Bond?

Thuy- Yes

Motion to approve: the financial report and check register made by Jim Raughton, seconded by Robert Shonkwiler. Motion carries, none opposed.

ITEM 4 – Approval of Third Quarter Continuing Disclosure Report – Thuy Dam, CLA

*Items presented in this section are in the Financial Report- Attachment A*

Comments:

The report shows that no certificates of occupancy have been issued although Trader Joe’s has just opened. There is a need for accurate information. This issue was brought up one year ago; the Authority didn’t want to pay fees associated with systems that track this sort of thing. The board contacted the County and the county stated they would put something in place for fee waivers, but nothing has happened since. Staff and Chair have contacted Jeff Green and the county recently, but not resolutions were given. Board members suggest to get the information from the developer, but unclear if Tom can get information on offsite items.

Board mentions that there have been more development and leases than what is listed here (in the report).

Additional Building Permit listed in report, University Village area CLA staff has attempted to contact and also tired the website, but got nothing out it.

Board discussed the effect of failing to approve report due to inaccurate information, incomplete and return it back. Chair states this is our mandatory disclosure in connection with bonds. Board states that this information goes to the bond holders and they are not comfortable approving with inaccurate information. November 15, this is due.

Board directs Jim to contact the developers, the county, University of Colorado, Marvin Wood and other individuals for information. CLA will look into it again with Regional Building also and report back in November.

Motion for Conditional Approval: subject to revision with accurate information made by Jim Raughton, to modify and add correct data, seconded by Nolan Schriner. Motion carries, none opposed.

Item 5 – Citizen Comment Period

Anita Miller - Listened to audio where you all unanimously decided to strike minutes. That is insane, the reason I give comments is to be a part of that document. I would hope you think twice before you do that. It is very un-American

Chair Neville- now is a good time to discuss this item. Board agreed to follow same procedures as city council, by including name of individual and brief summarization of the items and discussion.

Merv Bennett- states that he provided copies of the minutes of city council to demonstrate how their procedures work and he feels CSURA should remain consistent.

Motion to Approve: adoption of citizen comment procedures by Merv Bennett Seconded by Robert Shonkwiler. Motion carries, none opposed.

Anita Miller- Says she’s very happy with that, she doesn’t expect a book to be written about the comments, she just wants a sentence or two.

Board discussed that it is important to be cognizant of what is considered public comment and what is relevant to the agenda items. The Board has the discretion as to the time frame and agenda relevance in the citizen comment period.

Council Member Merv Bennett states he appreciates this for transparency purposes and giving people the opportunity to be heard and it does keep it consistent with Council. When we do that it allows people the chance to speak at different venues.

Robert Shonkwiler- states that allowing extended comments past three minutes, should be made in case members of the public have a more in depth point especially for some larger items that are forthcoming and they maybe representing a larger constituency.

Chair Neville- states all comments are well taken and that the CSURA policy already addresses the time frame for comments and chair/board discretion. So it’s already included.

Councilmen Miller spoke about the need for including citizen’s comments in the minutes and about the City for Champions budget.

Item 6– Draft 2015 Budget – Thuy Dam & Jim Rees

*Only comments discussed are reflected below, all detailed content items of the presentation are in attachment A.

Contents include operating budget and a separate one City for Champions Budget is just an estimate, Jim is still awaiting sales tax base calculation from the state.

Figures are very much just place holders for budget purposes because the figures for City for Champions will change and evolve.

No approval requested at this time that will come in November and December.

Concerns raised on staffing costs and funds coming in prior to spending.

Board states that they want to see the income prior to commitment of funds.

Also the budget shows dollar amounts the same for each of the project element sponsors, which will not likely be the case as each project will have different costs.

Ivywild increase came from school AV and small increase from personal property, approximately $142,000 in personal and approximately$685,000 from school increase in property value from the improvements that were built.

Copper Ridge is about a 55% increase.

UMB .12% interest rate on invested funds

North Nevada project isn’t appreciating from recent construction; the assessed value isn’t going up as much as some of the board anticipated. The reason is because it is a year and a half delay in showing due to taxes is paid in arears.

Question arose if the operating fund balance would be available for C4C costs, Jim Rees stated that these are independent of that; this is just the general fund. Thuy stated that the C4C revenue and expenses are kept separate per the resolution.

Peter Scoville asks if there is a way to allocate any of the these funds [general fund] towards C4C since there is concern of losing money on the front end of that thing [C4C]

Jim Rees states that we won’t lose money because how the funding works is we should actually start to see some state tax dollars rolling in even this year, and the resolution allows the Authority to start drawing from that to pay its admin costs.

Board asks Jim for information on CLA’s tracking to see C4C costs so far

For time being we are absorbing that cost, but the eligible costs will be charged the to the C4C expenses. We can reach back and be reimbursed for our financial analysis and legal costs to date associated with reviewing and negotiating the Resolution. CLA will research this by checking their previous invoices and Dan Hughes’ legal fees.

Ivywild Administration costs showing at $60,808, which includes a remainder that was unpaid from previous years, so it will not continue that high in the future.

Debt Service Fund North Nevada Project: Bond principal amount of 1.2 million dollar balance reflected is only for the current amount not the prior years. The total balance owed can be footnoted at the end of the report under debt service.

North Nevada weighs heavily on the board because it needs to turn around and the board needs to know how that is going to happen. The board keeps getting reassurances from the developer that it will all work out in the end somehow, but they are still concerned as to how that will happen.

Board shares concerns that the “projections from a few years ago for N. Nevada bonds would still not make this thing (default) whole.”

City Auditorium is still in the pre-development stages, but no activity has been seen.

Questions arose about any provisions on the city auditorium for discontinuing it as a URA.

*Board Member Colvert enters, she was held up at the Downtown Review Board meeting.

Copper Ridge number is just a place holder and the projection source is unknown, it pertained to the development agreement.

Board asks if the money collected form Copper Ridge is being held, the answer from Chair Neville; most are in escrow and some goes to the metro district (tax increment related to the mill levy for the district).

Jim Rees explains that the discrepancies sometimes arise with the county over changes in valuation due to property owners objecting to the valuation and we have to have a contingency to cover a potential refund.

Board asks if the money collected on Cooper Ridge is just going to sit there for the next 20 years. Jim Rees states that the agreement has some certain triggers in it so if we don’t get to a certain point then we could, he believes, disband the whole thing. Nolan Schriner asks, “Then where will the money go?” Jim Rees responds “back to the taxing entities unfortunately Nolan.”

Board Member Colvert asks the purpose of the contingency on Copper Ridge, since no other projects have one. Thuy responds that for the other projects, we usually zero out the remaining fund balance of whatever is left gets remitted to the school district or the metro districts or to the developers for admin fees.

City for Champions number are very very preliminary.

Board Breaks for Lunch

Item 7 – Quarterly Project Status Report – Jim Rees

Southwest Downtown: Still waiting on Mr. Murphy to make a deal with the one property owner that has the warehouse.

Gold Hill Mesa: developer continuing to make starts as far as the housing part of it. 100 multi-family, 136 single family units out there right now. Commercial piece, condition study should be available for you next month.

Board Member Shonkwiler expresses concern about not having the specific items for public improvements listed prior to starting the projects. He states that he is uncomfortable with proposing and coming up with these new districts or these other things unless we operate differently in that we have all these things in front of us before we put a designation on it, before we make recommendations on it and that he’s seen some resistance on it and the ultimate point of his comment is that we’ve got all these projects sitting around barren and he doesn’t to see that continue and that we don’t set up any kind of district of any kind that doesn’t perform as proposed. He is very discouraged to see that there is no movement on them.

North Nevada: Trader Joe’s was busy, a lot of people – Board member Hunter

City Planning has received a development plan for a private hospital. Since this is a significate project Jim suggested that they give a presentation on it. The group has many urgent care centers around the city already and this would be a significantly larger facility (52 beds).

City Auditorium: there has been no activity on that and Norwood has not indicated that they plan to develop any time soon.

City Gate: Part of the site, 2 lots have been sold to the Emergency Resource Center.

Copper Ridge: there is a list of the business and the time tables on that, when they anticipate openings.

Ivywild: no real changes in the area.

Vineyard: they have gotten letters of intent for the first 33% of the first building and they are going to authorize some construction soon (2015).

Item 8- Other Matters

Final C4C resolution is signed by the mayor and Chair Neville

Next month meeting is November 19, 2014

Peter Wysocki brings to board that it has become increasingly difficult his staff, Alenna Elliott to provide services. Her position is responsible for all the development applications. Other options are to hire a temporary staff.

Board says we need to explore other options as the current arrangements are not working.

Item 9 – Adjourn

Motion to Adjourn: made by Robert Shonkwiler, seconded by Jim Raughton. Motion carried

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