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1 Ogden City Council Meeting: October 3, 2017 AMENDMENT TO THE FISCAL YEAR 2018-2022 CAPITAL IMPROVEMENT PLAN (CIP) – COURTYARD INN ACQUISITION AND DEMOLITION Approve/not approve Ordinance 2017-41 Administration is proposing an amendment to the adopted Fiscal Year 2018-2022 CIP. The proposed amendment would add one project to the adopted plan that is specific to the acquisition, demolition and site development of the Courtyard Inn. The project was discussed with the FY2018 budget process and $250,000 was approved with the final budget to go toward the purchase price. A resolution authorizing the purchase was approved by the City Council on September 12, 2017 and included $200,000 due at closing with an additional $50,000 in earnest money to be applied to the $970,000 total purchase price included in the Real Estate Purchase Contract. The proposed CIP brief would be added to the FY2018-2022 CIP. Each year, the City develops, reviews, and adopts a five-year Capital Improvement Plan. The purpose of the plan is to establish the capital needs of the City and allow projects to be planned for by articulating the need, the scope of the project, the overall budget, the proposed annual allocations for the project’s development, and the potential sources of funds. Capital projects, meaning those projects in excess of $30,000 which add to the City’s physical plant, that are included in the CIP are then funded in the annual budget. Typically, the CIP is developed toward the end of a calendar year, reviewed by the Planning Commission in December, and then forwarded on to the Council for review with adoption typically taking place in March. This process is repeated each year. From time to time, amendments need to be made to an adopted CIP. This usually is the result of funding opportunities that arise during the first fiscal year of an adopted CIP. Projects that receive new or unanticipated funding may be moved up in funding years identified in the adopted CIP, or may be added to the CIP to allow funding during a given fiscal year. Amendments to the CIP follow the same general review framework as the overall plan itself. This means that a project brief is developed, reviewed by the Planning Commission to ensure ---PAGE BREAK--- 2 Ogden City Council Meeting: October 3, 2017 consistency with the General Plan, reviewed by the Council and considered at a public hearing. In this case, the City is adding a project to the FY2018-2022 CIP for the acquisition, demolition and redevelopment of the Courtyard Inn located at 445 25th Street. The City’s acquisition of the property was discussed throughout and after the FY2018 budget review process and $250,000 was approved with the adoption of the final budget on August 8, 2017. The City Council approved a resolution authorizing the purchase of the property on September 12, 2017. The Real Estate Purchase Contract (REPC) purchase price totaled $970,000 which included $200,000 due at closing with an additional $50,000 to be held in earnest which would be applied toward the total purchase price. The terms of the REPC indicate that the remaining $720,000 is due approximately one year after closing (closing is no later than October 2, 2017). This funding has not yet been finalized and will be discussed during the FY2019 budget process. FY2018-2022 CIP Process Timeline October 31, 2016 The proposed FY2018-2022 CIP was provided to the Council office. The plan was also submitted to the Planning Commission for review and recommendation. December 7, 2016 The Planning Commission reviewed the FY2018-2022 CIP. The plan was given a recommendation of approval with a vote of 6-0 with three projects recommended for exclusion from the plan. December 15, 2016 The Council office received the transmittal containing the Planning Commission’s recommendation. January 17, 2017 – Council Staff Overview Council Staff reviewed the proposed plan and identified issues the Council may want to consider during the plan adoption process. In previous years, the Administration would provide a cursory overview of the proposed plan prior to Council Staff’s review. It was determined that Council Staff’s review was an adequate introduction to the proposed plan and the initial Administrative presentation was not necessary. ---PAGE BREAK--- 3 Ogden City Council Meeting: October 3, 2017 February 14, 2017 – Specific Projects Review Representatives from the Administration reviewed and discussed their department’s projects and answered questions for the Council. February 21, 2017 – Council Discussion The Council prioritized the proposed FY2018 General Fund projects and had the opportunity to ask any final questions and propose any changes in preparation for adoption of the plan. February 28, 2017 City Council Meeting The Council set a Public Hearing for March 21, 2017. March 21, 2017 City Council Meeting Public input on FY2018-2022 CIP The Council adopted the FY2018-2022 CIP May 2, 2017 City Council Meeting Mayor presented the Administration’s proposed budget for Fiscal Year 2018 containing recommendations for funding of CIP projects included in the 2018-2022 CIP. May 16, 2017 City Council Meeting The Council set a public hearing on the Tentative FY2018 budget for June 6, 2017. June 6, 2017 City Council Meeting The Council adopted the Tentative FY2018 budget on June 6, 2017 and set public hearings for the Final FY2018 budget for June 20, 2017, July 11, 2017, and August 8, 2017. August 2, 2017 The Planning Commission reviewed and forwarded a recommendation of approval for project CD080 – Courtyard Inn Acquisition & Demolition. August 8, 2017 The Council adopted the Final FY2018 budget. August 15, 2017 The Council office received the transmittal for the proposed project, CD080 – Courtyard Inn Acquisition & Demolition. ---PAGE BREAK--- 4 Ogden City Council Meeting: October 3, 2017 August 22, 2017 The RDA Board approved a resolution authorizing the purchase of the Courtyard Inn for $970,000. September 12, 2017 The Council reviewed the proposed amendment at the September 12, 2017 work session. September 12, 2017 The Council and RDA Board approved an amendment to the Real Estate Purchase Contract (REPC) authorizing the City to purchase the property instead of the RDA. The current proposal is to amend the adopted FY2018-2022 CIP adding one project: CD080 – Courtyard Inn Acquisition & Demolition This project is for the acquisition, demolition and redevelopment of the Courtyard Inn located at 445 25th Street. The project is intended to acquire what is considered to be a blighted building, remove the structure, and redevelop the site as a public plaza. The initial funding for this project includes $250,000 that was approved with the Final FY2018 budget on August 8, 2017. Additional funding is needed and will be appropriated with the FY2019 budget. The Planning Commission reviewed the proposed project at the August 2, 2017 meeting. The Commission forwarded a recommendation of approval with an 8-1 vote with the finding that the project is consistent with the General Plan. Commissioner Southwick voted against the recommendation indicating that he felt the costs were too high for the project and that it was not a good use of taxpayer money. ---PAGE BREAK--- 5 Ogden City Council Meeting: October 3, 2017 1. Transmittal 2. Ordinance 2017-41 3. CIP Brief for Project CD080 – Courtyard Inn Acquisition & Demolition Council Staff Contact: Glenn Symes, AICP (801) 629-8164 ---PAGE BREAK--- ORDINANCE NO. 2017-41 AN ORDINANCE OF OGDEN CITY AMENDING THE FY 2018-2022 CAPITAL IMPROVEMENT PLAN BY ADDING PROJECT CD080 TO ACQUIRE PROPERTY AT 445 25th STREET FOR USE AS A PUBLIC PLAZA; AND PROVIDING THAT THIS ORDINANCE SHALL BECOME EFFECTIVE IMMEDIATELY UPON POSTING AFTER FINAL PASSAGE. WHEREAS, the Council of Ogden City has previously approved a Capital Improvement Plan (CIP) for Fiscal Year (FY) 2018 through FY 2022 by adopting ordinance 2017-5; and WHEREAS, the Ogden City Business Development Division has proposed an addition to the FY 2018 to 2022 CIP to allow for the acquisition of property and demolition of an existing structure at 445 25th Street for use as a public plaza; and WHEREAS, the proposed modification requires a formal budget opening to allocate the necessary funds, which shall be accomplished by a separate ordinance; and WHEREAS, the planning commission has reviewed the proposed project and has determined that the project is consistent with the general plan; and WHEREAS, after due consideration, the Council of Ogden City has approved the proposed modifications as described herein. NOW THEREFORE, the Council of Ogden City hereby ordains: SECTION 1. Adjustment to the CIP Plan for FY 2018-2022. The Capital Improvement Plan for Fiscal Years 2018 to 2022, as previously approved and adopted by the City Council, is hereby amended by adding project number CD080, the project brief for which is attached hereto as Attachment A, to the FY 2018-2022 plan. SECTION 2. Effective date. This ordinance shall become effective immediately upon posting after final passage. ---PAGE BREAK--- PASSED, ADOPTED AND ORDERED POSTED by the Council of Ogden City, Utah, this day of , 2017. CHAIR ATTEST: Tracy Hansen, City Recorder Transmitted to the Mayor on Mayor's Action: Approved Vetoed Michael P. Caldwell, Mayor ATTEST: Tracy Hansen, City Recorder Posting Date: Effective Date: Approved as to Form: MHS 8/10/17 Legal Date ---PAGE BREAK--- ATTACHMENT A PROJECT BRIEF ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK---