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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 01/19/2021 - SECOND READING OF ORDINANCE NO. 007, 2021, AUTHORIAgenda Item 5 Item # 5 Page 1 AGENDA ITEM SUMMARY January 19, 2021 City Council STAFF Mark Sears, Natural Areas Manager Tawnya Ernst, Sr. Real Estate Specialist Ingrid Decker, Legal SUBJECT Second Reading of Ordinance No. 007, 2021, Authorizing the Conveyance to the Colorado Department of Transportation of Various Property Interests on City -Owned Property at Running Deer Natural Area, Archery Range, and Arapaho Bend Natural Area to be Used as Right-of-Way for Interstate 25 and Related Facilities. EXECUTIVE SUMMARY This Ordinance, unanimously adopted on First Reading on January 5, 2021, seeks Council approval of the Colorado Department of Transportation’s (CDOT) requested purchase of one right-of-way parcel on Arapaho Bend Natural Area, two right-of-way parcels and four temporary easements on Running Deer Natural Area and the Archery Range for the purpose of widening Interstate 25 and relocating the Port of Entry. A revision to the Ordinance on Second Reading includes the price CDOT has agreed to pay for these property interests. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. BACKGROUND/DESCRIPTION Since First Reading, staff has received the following information that was not available for First Reading: A.Regarding values for the right-of-way parcels and temporary easements, CDOT has submitted an Offer Letter to the City for $75,000, which Real Estate Services and Natural Areas Staff has reviewed and determined represents a Fair Market Value offer and is appropriate compensation. A breakdown of the offer is as follows: •Arapaho Bend ROW Parcel – 0.421 Acres at $8,275 per acre: $3,500 •Running Deer/Archery Range ROW Parcels – 4.546 Acres at $15,650 per acre: $71,912 •Running Deer/Archery Range TE Parcels – 0.172 Acres at $15,650 acre x 10% x 1 year: $267 •Total Land Value: $74,912 rounded up to $75,000 In addition, CDOT will be required to pay the City $3,000 for the ROW Request Application Fee and a Restoration Fee of $516 (0.172 Acres at $3,000: $516) Total Compensation: $78,516 B.Regarding Council’s questions on First Reading about the proposed location for the Port of Entry, CDOT provided the following response: Agenda Item 5 Item # 5 Page 2 The Colorado Department of Transportation (CDOT) and the Colorado State Patrol Port of Entry hav e studied a wide variety of alternative locations and configurations for the existing Port of Entry facilities near the Interstate 25 (I-25) and Prospect Rd Interchange. As part of the Final Environmental Impact Statement (FEIS) for the North I-25 Corridor and subsequent National Environmental Policy Act (NEPA) documents, [CDOT] recognized the need to relocate the existing Port of Entry facilities to improve the safety and operations of the I-25/Prospect Rd Interchange. Relocating the facilities north of the I-25 and Colorado State Highway 14 (CO 14) Interchange is not desirable because of impacts to the enforcement and therefore, operational and safety concerns this might pose the State’s highway system. Additionally, physical constraints along I -25 between CO 14 and Prospect Rd make that location less than desirable as well. For these reasons, it was determined that the port facilities must be along I-25 south of Prospect Rd. The proposed location for the relocated port facilities relocates the facilities as far south as possible without negatively impacting the I -25 and Harmony Rd Interchange which allows for the maximization of the operations and safety improvements associated with this scope of work, therefore meeting the goals of the FEIS. For safety reasons, it was deemed necessary for the east and west port facilities to have line of sight across I -25 for emergency scenarios. This additional safety constraint and CDOT’s desire to balance impacts on both side s of I-25 contributed to the relocated port of entry location. C. Regarding Council’s questions and concerns about environmental impacts and tree mitigation: CDOT’s payment of $68,000 for tree mitigation in 2018 at Arapaho Bend, primarily at the I-25 Poudre River Bridge, does include mitigation for the tree loss associated with the additional ROW parcel being acquired at Arapaho Bend. There will be very minimal tree/shrub loss on the Running Deer and Archery Range parcels, the value received for the land covers this minimal loss. While the buffer between the Poudre River and I-25 is being reduced by approximately 120’, the remaining 500’ plus buffer is still significant. There is very minimal environmental impact to the Archery Range property. Almost all major impact, approximately 5,000 S.F. of right-of-way and approximately 5,000 S.F, of temporary easement, is to the entrance road which is being realigned and reconstructed along with the frontage road realignment and reconstruction. Regarding Council’s questions and concerns about the aesthetics of the new Port of Entry buildings, CDOT has been engaged in the Site Plan Advisory Review (SPAR) process. The Planning and Zoning Board is scheduled to hear this item on January 21, 2021, public meeting. This review does entail the design of both the proposed office building and inspection shelter. City staff have completed multiple rounds of review with CDOT and have seen improvements to the character of these buildings. At the Planning and Zoning Board hearing City staff will be recommending approval. ATTACHMENTS 1. First Reading Agenda Item Summary, January 5, 2021 (PDF) Agenda Item 8 Item # 8 Page 1 AGENDA ITEM SUMMARY January 5, 2021 City Council STAFF Mark Sears, Natural Areas Manager Tawnya Ernst, Real Estate Specialist III Ingrid Decker, Legal SUBJECT First Reading of Ordinance No. 007, 2021, Authorizing the Conveyance to the Colorado Department of Transportation of Various Property Interests on City-Owned Property at Running Deer Natural Area, Archery Range, and Arapaho Bend Natural Area to be Used as Right-of-Way for Interstate 25 and Related Facilities. EXECUTIVE SUMMARY The purpose of this item is to seek Council's approval of the Colorado Department of Transportation’s requested purchase of one right-of-way parcel on Arapaho Bend Natural Area, two right-of-way parcels and four temporary easements on Running Deer Natural Area and the Archery Range for the purpose of widening Interstate 25 and relocating the Port of Entry. STAFF RECOMMENDATION Staff recommends adoption of this Ordinance on First Reading. BACKGROUND / DISCUSSION The Colorado Department of Transportation (CDOT) is currently widening I-25 from 4 lanes to 6 lanes and relocating the Port of Entry (POE) further south to improve traffic capacity on Interstate 25 (I-25) and the safety of truckers and motorists. In 2018, CDOT acquired ROW from the City at Arapaho Bend Natural Area (ABNA). At that time, the plans for I-25 further north across Running Deer Natural Area (RDNA) were still being designed and plans for the bridge over the Poudre River at ABNA were not finalized. CDOT is now finalizing the plans for I-25 and has recognized the need to acquire an additional parcel of ROW at ABNA on the east side of I-25 to construct the bridge over the Poudre River. This area is currently within a temporary easement CDOT had acquired in 2018. The proposal is to convert this temporary easement (TE) to a permanent ROW. CDOT envisions relocating the POE to be adjacent to RDNA and part of the Archery Range. Thus, CDOT is requesting ROW and TEs across RDNA, including one that covers a small portion of the Archery Range, which is owned by the City’s Parks Department. Finally, CDOT is asking the City to give up any rights of access it may have directly from its properties to the I- 25 right-of-way within this project area, to limit access on and off the highway to interchanges only. City staff is not aware of any such rights, so has no concerns about relinquishing any claim to them. CDOT needs to start utility and irrigation ditch relocations in this area immediately to keep the project on schedule and asked NAD to expedite this request without waiting for appraisals or finalized plans. Council is being asked to approve the conveyances without knowing the compensation values or the exact final areas of the ROW or ATTACHMENT 1 Agenda Item 8 Item # 8 Page 2 TE requests, although an approximate dollar value can be determined based on a similar conveyance to CDOT in 2019. Environmental Impacts The Poudre River bridge will span across the entire river channel and provide ample width for a wildlife corridor and for the Poudre Trail to pass under the bridge. The construction will require the removal of trees and shrubs along the river and it will temporarily disturb the river channel. In 2018, CDOT paid NAD $68,650 to mitigate the loss of trees since there was no room within the ROW for additional tree plantings. The widening of I-25, the relocation of the POE, and the relocation of the frontage road across RDNA will take approximately 4 acres of the agriculture field NAD currently leases to a third party for hay farming and remove an approximately 0.5-acre grass area and a small cluster of shrubs from in front of the Archery Range. The project will effectively reduce the buffer from I-25 to the Poudre River by over 100’. Staff will determine if the impacts to vegetation warrant a mitigation payment in addition to the compensation for the land. Permanent ROW Needed: ABNA - 18,321 SF (0.421 acres), more or less, for Poudre bridge construction RDNA - 88,611 SF (2.034 acres), more or less, for widening I-25 and POE relocation RDNA - 109,406 SF (2.512 acres), more or less, for relocating frontage road Temporary Easements Needed: RDNA - 308 SF (0.007 acres) more or less, for construction access on the north end of RDNA RDNA/Archery Range - 4,969 SF (0.114 acres) more or less, for realigning entrance to Archery Range RDNA - 1,600 SF (0.037 acres), more or less, for realigning access road to Arapaho Bend RDNA - 599 SF (0.014 acres), more or less, for drainage inlet construction CITY FINANCIAL IMPACTS CDOT is currently having the fair market values for the ROW’s, TE’s and loss of trees and shrubs appraised by a certified appraiser. Real Estate Services and NAD staff will review the appraisals and ensure that the City receives appropriate compensation. CDOT will also pay the standard easement application fee and pay NAD’s standard restoration fees if applicable. If the appraisals are available prior to Second Reading of the Ordinance, staff will include the actual values in the Ordinance for Second Reading. If not, staff will ask Council to postpone Second Reading until the values can be filled in. In the meantime, an approximate value of these property interests can be calculated based on the amount CDOT paid the City in January 2019 for another piece of ROW and some TEs on Arapaho Bend Natural Area, also as part of the I-25 expansion project. In that transaction CDOT paid $15,000 per acre for permanent ROW and $3,000 per acre for TEs. Assuming that is a reasonable approximation of current fair market value of the City properties impacted by this phase of the I-25 project, and not adjusting for inflation or other factors, fair compensation for the property rights described above would be approximately $75,000, not including compensation for trees and shrubs, application fee, and restoration fees. BOARD / COMMISSION RECOMMENDATION The Land Conservation and Stewardship Board recommends that Council approve an ordinance authorizing the conveyance to the Colorado Department of Transportation of various property interests on City-owned property at Arapaho Bend Natural Area and Running Deer Natural Area. (Attachment 2) Agenda Item 8 Item # 8 Page 3 PUBLIC OUTREACH CDOT has provided public outreach regarding the widening of I-25 over the years that this project has been in the planning. Natural Areas only public outreach has been its presentation to the Land Conservation and Stewardship Board on December 9, 2020. ATTACHMENTS 1. CDOT - ROW Request Maps (PDF) 2. LCSB Minutes Excerpt (PDF) -1- ORDINANCE NO. 007, 2021 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE CONVEYANCE TO THE COLORADO DEPARTMENT OF TRANSPORTATION OF VARIOUS PROPERTY INTERESTS ON CITY-OWNED PROPERTY AT RUNNING DEER NATURAL AREA, ARCHERY RANGE, AND ARAPAHO BEND NATURAL AREA TO BE USED AS RIGHT-OF-WAY FOR INTERSTATE 25 AND RELATED FACILITIES WHEREAS, the City is the owner of property located north of Harmony Road on both sides of I-25 known as Arapaho Bend Natural Area, as well as two properties located north of Harmony Road on the west side of I-25 known as the Archery Range and Running Deer Natural Area (all three collectively referred to hereafter as the “Properties”); and WHEREAS, the Colorado Department of Transportation (CDOT) is continuing work on its expansion of I-25 from four lanes to 6 lanes near Fort Collins, which will include building a new bridge over the Poudre River and relocating the Port of Entry (“POE”) (the “Project”); and WHEREAS, to keep the Project on schedule, CDOT has urgently requeste d that the City give it access rights to begin construction activities on portions of the Properties; and WHEREAS, specifically, CDOT is requesting the City convey to it the following property interests, as more particularly described in Exhibits “A” through “H”, attached hereto and incorporated herein by reference (the “Property Interests”): On Arapaho Bend Natural Area: A. 18,321 sq. ft. (0.421 acres), more or less, of permanent right-of-way (“ROW”) for Poudre River bridge construction; On Running Deer Natural Area: B. 88,611 sq. ft. (2.034 acres), more or less, of ROW for widening I-25 and POE relocation; C. 109,406 sq. ft. (2.512 acres), more or less, of ROW for relocating frontage road; D. 308 SF (0.007 acres) more or less, temporary easement (“TE”) for construction access on the north end of RDNA; E. 4,969 SF (0.114 acres) more or less, including a portion on Archery Range, TE for realigning entrance to Archery Range F. 1,600 SF (0.037 acres), more or less, TE for realigning access road to Arapaho Bend G. 599 SF (0.014 acres), more or less, TE for drainage inlet construction -2- H. Conveyance back to CDOT of any access rights the City has from the Properties directly onto the I-25 ROW; and WHEREAS, the final legal descriptions of the Property Interests may vary slightly from what is shown on the Exhibits, but the total area of each Property Interest should remain approximately the same; and WHEREAS, based on appraisals of the Property Interests, the total value of the Property Interests has been determined to be $75,000; and WHEREAS, CDOT will also pay the City $3,000 for the Right-of-Way Request Application Fee and a Restoration Fee of $516; and WHEREAS, the new Poudre River bridge will span across the entire river channel and provide ample width for a wildlife corridor and for the Poudre Trail to pass under the bridge; and WHEREAS, at its regular meeting on December 9, 2020, the Land Conservation and Stewardship Board recommended that the city Council approve the conveyance of the Property Interests to CDOT; and WHEREAS, Section 23-111(a) 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 that the City Council first finds, by ordinance, that such sale or other disposition is in the best interests 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. Section 2. That the City Council hereby finds that the conveyance of the Property Interests to CDOT as provided herein is in the best interests of the City. Section 3. That the Mayor is hereby authorized to execute the deeds or other instruments necessary to convey the Property Interests to CDOT, and the City Manager is authorized to execute such other documents related to the property conveyances described herein as may be necessary, all on terms and conditions consistent with this Ordinance, together with such additional terms and conditions as the City Manager, in consultation with the City Attorney, determines are necessary or appropriate to protect the interests of the City, including, but not limited to, any necessary changes to the legal description of such Property Interests, as long as such changes do not materially increase the size or change the character of the interests to be conveyed. -3- Introduced, considered favorably on first reading, and ordered published this 5th day of January, A.D. 2021 and to be presented for final passage on the 19th day of January, A.D. 2021 __________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on this 19th day of January, A.D. 2021. __________________________________ Mayor ATTEST: _____________________________ City Clerk