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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 05/04/2021 - SECOND READING OF ORDINANCE NO. 063, 2021, AUTHORI Agenda Item 12 Item # 12 Page 1 AGENDA ITEM SUMMARY May 4, 2021 City Council STAFF Keith Hanson, Real Estate Manager Jason Graham, Water Reclamation/Biosolids Manager Ryan Malarky, Legal SUBJECT Second Reading of Ordinance No. 063, 2021, Authorizing the Sale of an 11.4-acre Parcel of Vacant Land Located at Meadow Springs Ranch. EXECUTIVE SUMMARY This Ordinance, unanimously adopted on First Reading on April 20, 2021, sells 11.4 acres of vacant City - owned land to Daniel R. Thiel, who has offered to purchase it. The fair market value and negotiated purchase price is $13,680, and the deed contains a restriction prohibiting any advertising signs from being placed on the property. The sale is contingent on approval by Council. The close of escrow is expected to be May 18, 2021. Meadow Springs Ranch is operated by the City’s Utilities department, and it has no current or identified future use for this parcel. They concur that it is in the best interest of the City to eliminate potential maintenance and liability issues that may arise with respect to the property by selling it to Mr. Thiel. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. First Reading Agenda Item Summary, April 20, 2021 (w/o attachments) (PDF) 2. Ordinance No. 063, 2021 (PDF) Agenda Item 20 Item # 20 Page 1 AGENDA ITEM SUMMARY April 20, 2021 City Council STAFF Keith Hanson, Real Estate Manager Jason Graham, Water Reclamation/Biosolids Manager Ryan Malarky, Legal SUBJECT First Reading of Ordinance No. 063, 2021, Authorizing the Sale of an 11.4-acre Parcel of Vacant Land Located at Meadow Springs Ranch. EXECUTIVE SUMMARY The purpose of this item is to sell 11.4 acres of vacant City-owned land to Daniel R. Thiel, who has offered to purchase it. The fair market value and negotiated purchase price is $13,680, and the deed contains a restriction prohibiting any advertising signs from being placed on the property. The sale is contingent on approval by Council. The close of escrow is expected to be May 18, 2021. Meadow Springs Ranch is operated by the City’s Utilities department, and it has no current or identified future use for this parcel. They concur that it is in the best interest of the City to eliminate potential maintenance and liability issues that may arise with respect to the property by selling it to Mr. Thiel. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION The City owns this 11.4-acre parcel of vacant land as part of the approximately 26,000 acres that make up the Meadow Springs Ranch. The Utilities department uses the Ranch for the regulatory compliant application of biosolids generated from the City’s wastewater facilities, as well as leasing it as a working cattle ranch. The 11.4-acre parcel is located in Weld County adjacent to the east side of Interstate 25. The rest of Meadow Springs Ranch in that area lies on the west side of Interstate 25 (Attachments 1 and 2). The 11.4-acre parcel is a standalone parcel that is severed from the rest of Meadow Springs Ranch. It is not used by the City for biosolids application or for cattle operations like on the remainder of the Ranch. City staff from Real Estate Services, Utilities and Natural Areas have consulted with each other on the sale of this parcel, and they have determined there is no current or future identified use of it. Daniel R. Thiel (along with his company, the Terry Grazing Association) is the owner of the property surrounding this parcel and is uniquely situated to make use of the property because of his existing access. The City and Mr. Thiel have entered into a Purchase and Sale Agreement with a purchase price of $13,680.00. Real Estate Services determined this is a fair market value based on comparable sales and the lack of existing independent access to the parcel. As part of Agreement, the parties agreed to include a deed restriction, which was recommended by the Natural Areas department, that will prohibit any advertising signs being placed on the property. Mr. Thiel has agreed to remove all due diligence contingencies on the transaction. Therefore, the completion of this transaction is only contingent on Council’s approval of the sale by its final adoption of this Ordinance in accordance with Article IV, Section 23-111 of the City Code. ATTACHMENT 1 Agenda Item 20 Item # 20 Page 2 CITY FINANCIAL IMPACTS The sale proceeds of $13,680, less costs associated with the sale, will be deposited in Utilities’ budget. BOARD / COMMISSION RECOMMENDATION The Water Board has been apprised of the intent to sell the property. ATTACHMENTS 1. Meadows Springs Ranch Map (PDF) 2. Detail Map (PDF) -1- ORDINANCE NO. 063, 2021 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE SALE OF AN 11.4-ACRE PARCEL OF VACANT LAND LOCATED AT MEADOW SPRINGS RANCH WHEREAS, the City is the owner of Meadow Springs Ranch, 26,000 acres of land located approximately 20 miles to the north of the City of Fort Collins near to the Wyoming border (the “Ranch”); and WHEREAS, the City’s wastewater utility uses the Ranch for the regulatory compliant land application of biosolids generated from the City’s wastewater facilities, and it is also leased as a working cattle ranch; and WHEREAS, an 11.4-acre parcel (the “Property”) within the Ranch is located adjacent to the east side of Interstate 25, is severed from the remainder of the Ranch, and is not used either for biosolids application or for cattle ranching operations; and WHEREAS, Real Estate Services staff has consulted with Utilities and Natural Areas department staff, and staff has concluded the City has no current or future identified use for the Property; and WHEREAS, because there is no foreseeable City use of the Property, staff is recommending the Property be sold for fair market value to Daniel R. Thiel who, along with his company Terry Grazing Association, is the owner of the real property surrounding the Property; and WHEREAS, Mr. Thiel has agreed to pay $13,680.00, which Real Estate Services staff has determined is fair market value based on a review of comparable sales and considering the lack of existing independent access to the Property; and WHEREAS, in addition to agreeing to pay fair market value, Mr. Thiel has agreed to a deed restriction that will prohibit the placement of advertising signs on the Property, which is a restriction recommended by the Natural Areas department; and WHEREAS, Section 23-111 of the City Code authorizes the City Council to sell, convey or otherwise dispose of any interest in real property owned by the City, provided the City Council first finds, by ordinance, that such sale or other disposition is in the best interests of the City and, for real property that is part of the City’s utility systems, that the disposition will not materially impair the viability of that utility system as a whole and will be for the benefit of the citizens of the City. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. -2- Section 2. That the City Council hereby finds that the sale of the Property to Daniel R. Thiel as provided herein is in the best interests of the City, will not impair the viability of the City’s utility systems, and will be for the benefit of the citizens of the City. Section 3. That the Mayor is hereby authorized to execute a deed and such other documents as are necessary to convey the Property to Mr. Thiel on terms and conditions consistent with this Ordinance, together with such other additional terms and conditions as the City Manager, in consultation with the City Attorney, determines are necessary and appropriate to protect the interests of the City or effectuate the purposes of this Ordinance, including but not limited to any necessary changes to the legal description of the Property, as long as such changes do not materially increase the size of the parcel to be conveyed. Introduced, considered favorably on first reading, and ordered published this 20th day of April, A.D. 2021, and to be presented for final passage on the 4th day of May, A.D. 2021. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 4th day of May, A.D. 2021. __________________________________ Mayor ATTEST: _______________________________ City Clerk