Montrose, CO — City Councilors met online for a virtual work session Monday, May 18 to get an update on a number of proposals under consideration, and a number of new annexations. Councilors Roy Anderson, Dave Bowman, Barbara Bynum, Dave Frank, and Doug Glaspell met for about one hour, 24 minutes on Zoom, along with city staff. The following is a summary of the primary topics discussed during the meeting.
Watch the meeting here.
POLICE DEPARTMENT FACILITY FINANCING - POST PRICING DETAILS
City Councilors were updated about the financing to construct a new police department complex on the city’s downtown campus.
Kyle Thomas, a senior vice president at D.A. Davidson informed the council that, due to market volatility, the city’s $16.2 million USDA Rural Development loan was secured with an interest rate of 3.29 percent, significantly lower than the 4 percent that had been expected.
City Manager Bill Bell said with an interest rate below 4 percent, the city’s annual debt service payment on the loan will be less than $900,000, which is what the city originally budgeted for. Earlier this spring, the city issued certificates of participation or COPs to fund the construction.
Thomas said a successful sale of the COPs raised enough money to construct the police complex.
PRESENTATION BY THE COLORADO HOUSING AND FINANCE AUTHORITY REGARDING PROJECT ACTIVITY BONDS
City Councilors were updated about the Colorado Housing and Finance Authority, (CHFA) Project Activity Bonds or (PAB) by Shannon Friel, who serves as the private activity bond manager for CHFA.
The IRS allocates an annual per capita bonding authority for housing to each state, also known as PAB Volume Capacity or “Cap”. Colorado, in turn, allocates this authority to statewide agencies and local governments. In 2019 the allocation for the City of Montrose was $1,032,833. In 2020, the allocation for the City of Montrose is $1,030,342.
For the past two years, the City of Montrose has assigned its allocation of PAB to the Colorado Housing and Finance Authority (CHFA). In 2019, the City Council requested that CHFA use the City’s PAB to support the construction of income-based housing development in the Colorado Outdoors Park.
Private Activity Bonds are used to support single-family housing, multifamily housing, and small manufacturing projects. The City of Montrose assigned its PAB to CHFA in 2019 for “The Park at Colorado Outdoors” project. The PABs for their construction financing is expected to close by mid-April. This year CHFA is requesting a continuation of this partnership, this time to support first-time homebuyers in 2020.
Assistant City Manager Ann Morgenthaler told the council that city staff is recommending that City Council consider assigning the city’s PAB allocation to CHFA, and request that CHFA use the PAB if there is the opportunity to support a single-family or multi-family project in Montrose and/or use the PAB allocation to support its single-family homeownership program known as FirstStep.
Upon receipt of the PAB assignment, CHFA will create a set-aside for 12 months within the FirstStep program equivalent to the City of Montrose’s 2020 PAB allocation. Homebuyers who meet the above requirements and are purchasing their first home within the City of Montrose will have their loans funded from the Montrose set-aside. At the end of 12 months, any unused funds in the set-aside will be incorporated into the general FirstStep program to be used anywhere in the state. CHFA’s FirstStep program is supported by PAB cap. All homebuyers will be eligible to receive a 4% down payment and closing cost grant funded by CHFA.
• 36 households purchased homes in Montrose using the FirstStep program.
• $6,975,187 total mortgage amount
Income - $62,049
Loan Amount - $200,796
In 2020 YTD:
• 1 household purchased a home; $177,966 total mortgage amount
• 2 households reserved loans, not yet closed; $397,663 total mortgage amount
Based on 2019 and current 2020 production, CHFA is confident that the full amount of the set-aside will be expended in the city within the 12-month set-aside period, continuing to serve the new families that will be calling Montrose home.
YOUTH COUNCIL MANUAL UPDATES
It was reported to the council that the governing document for the city’s youth council, last revised in 2016, has been updated. One such revision now requires at least one youth city councilor to attend all regular City Council meetings.
The Montrose Youth Council was established by the City Council to encourage greater youth participation in the city’s government.
Additional revisions included the creation of a youth city council mayor pro tem and public information officer. The youth council’s mayor and mayor pro tem are now required to attend or volunteer at four city events during each youth council term. All other youth council members are required to attend or volunteer at two city events.
HILLTOP ADDITION ANNEXATION
Councilors were updated about the Hilltop Addition, a proposed annexation approximately 15.75 acres in size. The parcel is located north of Locust Rd and between 6600 Rd. and 6650 Rd. It is within the City’s Urban Growth Boundary, the Tri‐County Water Service Area, and the City of Montrose Sewer Service Area.
The owner would like to develop a senior living community with approximately 125 townhome units. A city‐county intergovernmental agreement gives the city the option to annex properties within the IGA. The area is urbanizing and more than one-sixth of the perimeter is contiguous to city limits. These factors support annexation. The development will require sewer or other utility connections.
If the annexation passes through the city’s Planning Commission, city councilors could vote on the annexation in July.
RIVER CROSSING ADDITION ANNEXATION
Councilors were updated about the River Crossing Addition, a proposed annexation of approximately 36.33 acres in size. The parcel is located west of S. Townsend Avenue and between Ogden Road and S. Rio Grande Avenue. It is within the City’s Urban Growth Boundary, the City of Montrose Water Service Area, and the City of Montrose Sewer Service Area.
The owner would like to develop residential (multi‐family) units and general commercial/retail. A city‐county IGA gives the city the option to annex properties within the IGA. The area is urbanizing and more than one-sixth of the perimeter is contiguous to city limits. These factors support annexation. The development will require sewer or other utility connections.
The city maintains a right-of-way through this property for a future project to extend and connect the River Landing area with Rio Grande Avenue.
SINNER SUBDIVISION COMBINE SKETCH PLAN AND PRELIMINARY PLAT
Councilors were updated about a proposed plat to subdivide Lot 2 of the Marbella Minor Subdivision, which consists of 12.8 acres into five new lots. These lots will range in size from 1.7 acres up to 3 acres. Lot 1 will front on 6840 Road and the rest of the lots will front on East Oak Grove
There is an existing city forced main sewer line that runs along the east and north lines of the property that each lot will be able to connect to. There is an existing Tri‐County Water line along East Oak Grove Road that each lot will tap onto for water. Since no engineering is needed, this project was given the approval to proceed as a combined sketch plan and the preliminary plat.
If the annexation passes through the city’s Planning Commission, city councilors could vote to approve or deny the plat in July.
WESTCO AMENDED AND RESTATED INTERGOVERNMENTAL AGREEMENT
Montrose Police Chief Blaine Hall updated councilors about an intergovernmental agreement, or IGA, with WestCO Dispatch to provide dispatch services for the Montrose Police Department.
Currently, WestCO provides dispatch services for the City of Montrose, the Montrose Fire Protection District, the Town of Telluride, the Town of Mountain Village, Telluride Fire Protection District, the Town of Olathe, Montrose County, the Town of Ridgway, the City of Ouray, Ouray County, and the Olathe Fire Protection District.
Hall said since new members, including Montrose County, joined WestCO last year the updated IGA needs to be approved by City Council.
All City Council meetings are recorded and made available online via on the city’s website and cable channels 191 for Charter subscribers and 970 for Elevate subscribers. Replays of council meetings are also broadcast at 6 p.m. on the same channels on days that council is not in session.
In addition, each regular meeting is archived on the City of Montrose’s YouTube channel.
Residents can watch all regular City Council meetings and work sessions live through the city’s website at CityOfMontrose.org/Video.
For more city news visit CityOfMontrose.org.