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HomeMy WebLinkAbout12035RESOLUTION NO. 12035 A RESOLUTION APPROVING THE URBAN RENEWAL AUTHORITY OF PUEBLO FISCAL YEAR 2011 OPERATING BUDGET FOR PHASE ONE URBAN RENEWAL PROJECT AREA, THE EXPANDED PHASE ONE URBAN RENEWAL PROJECT AREA, AND THE PUEBLO CONVENTION CENTER BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: The Urban Renewal Authority of Pueblo (“Authority”) fiscal year 2011 Phase One Urban Renewal Project Area budget, Expanded Phase One Project Area budget, and Pueblo Convention Center budget (collectively, the “Budget”), a copy of which is attached hereto, is hereby approved; provided, however, that the Surplus for Vendor Fee shown on the Budget and on deposit in the Authority’s Excess Vendor Fee Account shall not be committed, encumbered, or expended by the Authority other than to invest or reinvest same without prior approval of the City Council by Resolution. INTRODUCED: December 13, 2010 BY: Steve Nawrocki COUNCILPERSON Background Paper for Proposed RESOLUTION DATE: December 13, 2010 AGENDA ITEM # Q-3 DEPARTMENT: OFFICE OF THE CITY MANAGER JERRY M. PACHECO, CITY MANAGER JENNY M. EICKELMAN, ASSISTANT CITY MANAGER TITLE A RESOLUTION APPROVING THE URBAN RENEWAL AUTHORITY OF PUEBLO FISCAL YEAR 2011 OPERATING BUDGET FOR PHASE ONE URBAN RENEWAL PROJECT AREA, THE EXPANDED PHASE ONE URBAN RENEWAL PROJECT AREA, AND THE PUEBLO CONVENTION CENTER ISSUE Should City Council approve the Urban Renewal authority Phase One Project Area, Expanded Phase One Project Area, and Pueblo Convention Center 2011 Amended Budget? RECOMMENDATION Approval of the Resolution. BACKGROUND The Urban Renewal Authority of Pueblo (“Authority”) annual budget contain two sources of funding which involve the City – 3.3% of City of Pueblo sales tax (Vendors Fee) and tax increment financing revenue (TIF) derived from within certain Urban Renewal Project Areas. The Vendors Fee had been authorized by City ordinance to be used for payment of principal and interest on bonds for the Pueblo Convention Center, which the Authority owns and operates. It is also used, in accordance with the ordinance, to cover any net operating loss of the Convention Center after application of Convention Center revenues. TIF is generated from City Council designated Urban Renewal Project Areas and is then reinvested into said project areas. The use of TIF is authorized by Colorado State Statute and said funds are under the control of the Authority for use in accordance with City Council approved urban renewal plans and subject to the terms of cooperation agreements between the City and Authority and other contractual commitments as may be executed by the Authority. The City of Pueblo and the Authority have entered into an Amended and Restated Phase One Project Cooperation Agreement dated March 26, 2007, to facilitate redevelopment within the Authority’s Phase One Project Area, which includes the Pueblo Convention Center, Vectra Bank and the Marriott Hotel, and specifically for the purpose of financing the Pueblo Main Street Parking Garage. Pursuant to the Cooperation Agreement, City Council must approve the Expanded Phase One Project Area budget and the Phase One Project Area budget (including then convention center) annually or as amended by the Authority, before they become effective. FINANCIAL IMPACT The Urban Renewal Authority of Pueblo 2011 Operating Budget is attached. t , 3 Urban Renewal Authority of Pueblo 2011 Project Area Budget All Project Areas 110 I $a s r ' ,, ef.i ! �' - vsl' fu, F und f�[COL11lt ; +s ) '7!4 t I ,7 i kn • ' S (Itf' 701 I Fib , 1j t 46 201 10u Igctr , 1011 0 J Ju k { 7q I I 1 3 R [ :201 I B lr 201111 lj t ; l 201 1 11 igrt 3 201 t , (iu 13 t 2(111 R I I t Sum 2011 Sum 2010 URAP REVENUE tl 1(21)3'13 5 II,,.I1sl Dish , 2. ! I l r , x 1 ll) tl� .., lllt13 , n, ,,. ,11 / M1 ,t Sa, Ir.'11 ) I I n re tin 11 lol r m 2 ■ ■ v , l � !, , n u l i � � All Budgets All Budgets Administrative 559,855 559,855 385.081 Earnest Money Facade Improvement Revenue 9,600 9,600 9,600 Inter - Project Area Relmbursements Investment Income -TIE 800 800 500 Inter-Project Area Loans 47,150 88,107 22,300 157.557 100,000 Main Street Garage Pueblo Debt Payment ' 301.846 301,846 301,410 Main Street Garage Interest Payment 68.620 68,620 68,620 Main Street Garage Rents 37.000 Parking Lot Rental - Marton 7.564 7,564 7.200 Prior Year TIP Carryover 618 2,850 21,893 369,720 13.792 57,621 120.752 481 587,727 488,630 Property Tax Increment 68,924 2,800,749 3,228 437,029 1,973 571,644 206,961 4,090,508 1.433,756 Sala Tax increment 140,000 140,000 130,000 Vendors' Fee 122.884 122,884 98,482 TOTAL REVENUE $ 69,542 $ 2,800,749 $ 3,228 5 50,000 5 110,000 S 806,750 5 15,765 $ 1,031,630 $ 476,076 $ 683,220 $ 6,046,961 $ 3,060,279 URAP EXPENSES A000nln(stratWn 96,000 204,373 15,736 243,746 559,855 385,081 Advertising/Marketing 20,000 20.000 Annual Report 4.000 4,000 19,000 Attorney Costs _ 57,600 57,600 60,000 Audit Fees 10,000 10,000 9,000 Board Expenses 18,000 18,000 17,000 City RNmbursement- 1601 Study 6 Lot 21,120 21,120 170,000 ConsuOtg- Conditions Surveys 26,000 26,000 • Can048n9• Regional ToutsmAppl(00000 45,000 45,000 59,000 Consulting and Design Development 72,000 30,000 102,000 115.000 Debt 5ervke on Loan -126 N. Meow* - 39,902 39,902 40,512 Debt Service on HARP Lot 4 Condo 26,000 26,000 Debt Service on Parking Garage 754,614 754.614 753,525 Deposit to Lot 4 Develops 5,000 5,000 Downtown Implementation Strategy 45,000 45,000 30,000 Easnlde Coordinator Salary 30,000 30,000 30,000 HARP Special Protects 15,000 15,000 HARP IGA 35,000 35,000 35.000 InterahojectArea Loans 48,400 109,157 157,557 100,000 Once Expenses and Supplies 49.080 49,080 70,000 Operating Res,." 33.600 33,600 35,000 Parking Garage Expenses 100,000 100,000 130,000 Salaries and Benefits 219,911 219,911 205,000 Travel 0 Conferences 9,000 9,000 7,000 URA Community Involvement 5,000 5,000 10,000 uRA Dues and Subscriptions 3,918 3.918 3.400 URA Retreat 0,160 8,160 7,500 URA Speck PIoJecb 18.000 18,000 Veies -Cl y Tax I,,,a,m rt Reimbursement 469,727' 469,727 V0000-Pledged Revenue Principal Reimb 2,070,424 2,070,424 VestaoPledged Revenue Interest Relents 164,598 164,598 Thunder Village Reimbursement 3,228 3,228 Web Site 61.T. Expenses _ 1.152 1.152 9,000 TOTAL EXPENSES $ 69,520 S 2,800,749 $ 3.228 $ 5 5 385,530 $ 15,736 $ 774,614 $ 463,648 $ 614.421 5 5,127446 $ 2,300,018 CAPITAL EXPENSES Ar'Perfonnance In Public Places 10,000 25,000 10,000 45,000 HARP Lot 4 Condo Improvements 67,200 67,200 HARP Lot 4 Sprinkler/Elevator 90,000 90.000 Ice House Fund 1,968 lake AvenueImproveerentt ... - ' - 244,523 - 244.523 225,000 fandscapmg/Xemcaping 35,000 50,000 85,000 'Project Area Fe�ade lmprovenerlt Fiords ',,,..,. ,. .. "•'... .' 50.000 50,000 .. 200.000 82,000 Project Area Streetscape Improvements 50,000 50,000 50,000 150,000 URAP /ComvmOOn Center Server . - _ TOTAL CAPITAL PROJECTS $ $ $ $ 50,000 $ 110,000 5 404,523 5 S 250,000 S 5 67,200 $ 881,723 $ 308,968 EXCESS /LOSS/ URAP OPERATIONS $ 22 5 0 $ $ 5 101 $ 16,697 $ 29 S 7,016 $ 12,429 $ 1,600 $ 37,793 $ 760,261 •Ar/ MNnWr opuses I0M1Ie,A14 WMar' fee F. as Appro. 11mx1 r N 1,D; l 7+t - ' " "i « " `xi l to U1 U - >''t to to -`k; ..jb.' ,1; N N 00 co - y . .0).. 0 0 OO , �I V ;N i O' lD l0 t. „ xv 4 0. co -00_ �s'h` , C • to tA' . n i 1 , , ; 'T1 Cl to to m > >• ; C, 7 P O 'ro � ; 1 70 • 0 . o o ° o . 3 4"1 N fD 0 r N : C`'C I.+ d or C to o o 'se;. C rt 0 : 0 0.: ; =. .: `, : , &, • O. ,:? 00 O ,k, .. eh IA. to ' .rf• +n V 00 ,.= ;m 0 01 O 01,2 m.'iem . Syf . . M CT A- cr to tr); : d. tJY tJ1 'T �.Y : x ' N O. �N v� 1,„ ". , ▪ cn jot m A "O �" s s r a) V 0 i W - 0 . r�fj' .F.`4 01 ., .c"n O O O '1„. '"'G . ' t 01 01 ' C `d 1 4�' 3 to o0 00 ' : ��,•, m s t0, N co-- D_ c to iir P c W 2 to O O' Q N " -I l0 91, N 0 V I -� l0 (f, t0 Ol 01 :0, (.0 0 PUEBLO CONVENTION CENTER GLOBAL SPECTRUM FISCAL YEAR 2011 (January 1 December 31) INCOME STATEMENT BUDGET PROPOSAL BUDGET BUDGET ACTUAL 2011 2010 2009 I # OF EVENTS 420 412 448 ATTENDANCE 61,740 60,495 52,197 (DIRECT EVENT REVENUE ( RENTAL REVENUE 249 688 232,068 209 793 SERVICE REVENUE 159,410 166,384 124,284 TOTAL DIRECT EVENT REVENUE 409,098 398,452 334,077 (ANCILLARY REVENUE FOOD AND BEVERAGE REVENUE 1 184,213 1,259 022 1 195 356 AUDIO - VISUAL REVENUE 42,170 40,373 42,680 PARKING REVENUE 0 0 0 DECORATOR SERVICES REVENUE 13,365 13,365 22,543 NOVELTY 0 0 749 TOTAL ANCILLARY REVENUE 1,239,748 1,312,760 1,261,328 TOTAL EVENT REVENUE 1,648,846 1,711,212 1,595,405 OTHER REVENUE 18,000 15,400 29,578 TOTAL GROSS REVENUE 1,666,846 1,726,612 1,624,983 (EVENT EXPENSE SERVICE EXPENSE (96 916) (107 746) (87 694) FOOD & BEVERAGE EXPENSE (473 371) (505,993) (489 775) AUDIO- VISUAL EXPENSE (1 856) (1 836) (1,512) PARKING EXPENSE 0 0 0 DECORATOR SERVICES EXPENSE (668) (668) 0 BUSINESS CENTER EXPENSE 0 0 0 TOTAL EVENT EXPENSE (572,811) (616,243) (578,981) TOTAL EVENT INCOME 1,076,035 1,094,969 1,016,424 TOTAL INCOME WITH OTHER REVENUE 1,094,035 1,110,369 1,046,002 INDIRECT EXPENSES EXECUTIVE 172,236 154 035 152,880 FINANCE 148 780 134 916 141 478 MARKETING & SALES 266 925 260 015 172,328 EVENTS 137 871 131,933 116,503 OPERATIONS 153,909 214 736 228 749 OVERHEAD* ** 435,629 425,233 394,607 FOOD & BEVERAGE OVERHEAD 284,009 315,227 312,219 TOTAL INDIRECT EXPENSES 1,599,359 1,636,095 1,518,764 NET INCOME (505,324) (525,726) (472,762) SURPLUS /(SUBSIDY) FOR CONVENTION CENTER (505,324) (525,726) (472,762) VENDOR FEE INCOME Vendor Fee Revenue from City of Pueblo ( #9030 - 000 -00) 1 655 895 1 588 991 910 746 Investment Income from Reserve Acct and ANB ( #9010 - 000 -00) 30,000 60,000 109 TOTAL VENDOR FEE INCOME 1,685,895 1,648,991 910,855 OTHER VENDOR FEE EXPENSES CAPITAL EXPENSE (Using $250 000 Reserve) 413,000 16 633 Debt Service on Convention Center Bond ( #9616- 000 -00) 702 750 699,550 0 Depreciation Expenses 0 Marketing for Convention Center ( #9611 - 009 -00) 2,145 2,145 1,245 Pro -rated URA Personnel Exp, Office Exp & Board Exp ( #9500 - 001 -00) 124 000 98 056 106 768 Misc Expenses/Trustee Fees 1 000 1 000 2,000 Maintenance Reserve 50 000 50 000 50 000 Promotions Expense 40,000 40,000 44,000 TOTAL OTHER VENDOR FEE EXPENSES 1,332,895 890,751 220,646 SUPLUS /SHORT FOR VENDOR FEE (152,324) 232,514 217,447 ** *Overhead includes management fee and incentive fee Expenditures Item No. Unit Cost Total Cost Balance Remaining Management Improvements Computer Work Station Replacement 2 $ 1 000.00 $ 2,000.00 $ 2,000.00 Tent Replacement and Plaza Drainage 1 $300,000 00 $ 300,000.00 $ 300,000.00 Sound and AN Equipment 1 $ 5,000.00 $ 5,000 00 $ 5,000.00 Sub Total: $ 307,000.00 $ $ 307,000.00 Building Maintenance Equipment Parking Lot Sweeper 1 $ 8,500 00 $ 8,500 00 Sub Total: $ 8,500.00 $ $ 8,500.00 Kitchen Replacement/Maintenance Equipment Speed Racks 6 $ 400 00 $ 2,400.00 $ 2,400.00 Carving Stations 2 $ 1 000.00 $ 2,000.00 $ 2,000.00 Wireless Credit Card Terminals 2 $ 800.00 $ 1,600.00 $ 1,600.00 Sub Total: $ 6,000.00 $ $ 6,000.00 Interior Replacement/Maintenance Artwork 1 $ 5,000.00 $ 5,000.00 Security Upgrades /Replacement 1 $ 20,000.00 $ 20,000.00 Airwalls Part Replacement 1 $ 10,000 00 $ 10,000.00 Table for South Entry 1 $ 2,000 00 $ 2,000.00 Sub Total: $ 37,000.00 $ $ 37,000.00 Exterior Maintenance Convention Center Overflow Parking Lot Seal 1 $ 25,000.00 $ 25,000.00 Masonry Salt Cleaning and Seal 1 $ 10,000.00 $ 10,000.00 Holiday Lighting 1 $ 10,000.00 $ 10,000.00 Parking Lot Lights Replace 1 $ 5,000.00 $ 5,000.00 Exterior Caulking 1 $ 4 500.00 $ 4,500.00 Sub Total: $ 54,500.00 $ $ 54,500.00 Total All Categories $ 413,000.00 $ $ 413,000.00 Total $ 413,000.00 Use of $250,000 in Capital Reserve $ (250 000 00) Total Capital Request 2011 $ 163,000.00