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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 07/20/2021 - FIRST READING OF ORDINANCE NO. 095, 2021, AUTHORIZ Agenda Item 11 Item # 11 Page 1 AGENDA ITEM SUMMARY July 20, 2021 City Council STAFF Jason Licon, Airport Director Aaron Ehle, Airport Planning & Devt Specialist Judy Schmidt, Legal SUBJECT First Reading of Ordinance No. 095, 2021, Authorizing Conveyance of a P ermanent Non-Exclusive Utility Easement on Property Jointly Owned by the City and the City of Loveland at the Northern Colorado Regional Airport for the Discovery Air Development. EXECUTIVE SUMMARY The purpose of this item is to authorize a permanent non -exclusive utility easement over a portion of Northern Colorado Regional Airport property owned jointly by the Cities of Fort Collins and Loveland and leased by Discovery Air, LLC, to allow for the installation and maintenance of electrical infrastructure for the new Discovery Air development. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION Northern Colorado Regional Airport is a public facility jointly owned and operated by the Cities of Fort Co llins and Loveland. In 2015, the Cities entered into an intergovernmental agreement (IGA) that formed the Northern Colorado Regional Airport Commission, which is delegated certain powers and authority to operate and maintain the Airport. The City Councils of the Cities have the authority to grant an easement as a permanent property right in the Airport Property. In connection with the planned Discovery Air development project, the City of Loveland has requested a permanent non-exclusive easement for electr ical infrastructure (the “Easement”) to serve the development. According to Fort Collins Municipal Code Sec. 23-114. - Disposition of property interests for less than fair market value - Any sale, lease or other conveyance of property interests approved under Subsection 23- 111(a) or (b) or § 23-113 above must be for an amount equal to or greater than the fair market value of such interest unless the City Council or City Manager, as applicable, determines that such sale or lease serves a bona fide public purpose because: (1) The use to which the property will be put promotes health, safety or general welfare and benefits a significant segment of the citizens of Fort Collins; Northern Colorado Regional Airport is a public use airport which is jointly owne d by Fort Collins and Loveland. This easement will allow for private investment that will bring improvements to the Airport and the users it serves. The Airport supports many important emergency response and safety functions, such as medevac flights and aerial firefighting operations. The improvements constructed by Discovery Air will revert to the Cities and continue to serve the Airport after the expiration of the lease. Agenda Item 11 Item # 11 Page 2 (2) The use to which the property will be put supports one (1) or more of the City Council's goals, adopted policies, projects or plans; The easement will allow for private development of the site in alignment with the Airport Master Plan and the Discovery Air lease agreement, which have both been approved by the City Council. (3) The financial support provided by the City through the below-market disposition of the property will be leveraged with other funding or assistance; The City is benefiting from the grant of easement by allowing its partner, the City of Loveland, to provide utilities to permit the development of the Airport as guided by the Airport Master Plan. Furthermore, the Cities are receiving consideration through rent paid by the lessee under the lease agreement, which has been approved by Council. (4) The sale or lease will not result in any direct financial benefit to any private person or entity, except to the extent such benefit is only an incidental consequence and is not substantial relative to the public purpose being served; and The easement will simply allow t he City of Loveland to provide power to a private development on leased Airport land, at the developer’s expense. Ultimately, the Airport and the two Cities benefit from the utilities provided to permit development at the Airport. Discovery Air will not r eceive any more benefit than the other customers to which the City of Loveland provides utility services. (5) Selling or leasing the property for less than fair market rent will not interfere with current City projects or work programs, hinder workload schedules or divert resources needed for primary City functions or responsibilities. Granting the easement will not interfere with any City projects or work programs. The granted easement will ultimately benefit the Airport and the two Cities. As the easement meets the above criteria, Airport staff and the Airport Commission recommend approval of the Easement as it allows for privately-funded aeronautical development on leased land, which will benefit the Airport and Cities. BOARD / COMMISSION RECOMMENDATION The Northern Colorado Regional Airport Commission and the City Councils of Fort Collins and Loveland have approved the 2020 Airport Master Plan and the Lease Agreement with Discovery Air. PUBLIC OUTREACH The development of the 2020 Airport Master Plan, which took more than two years to complete, included numerous public meetings and significant outreach by the Airport, far exceeding what is recommended by the Federal Aviation Administration (FAA). ATTACHMENTS 1. Discovery Air Electrical Easement (PDF) ATTACHMENT 1 -1- ORDINANCE NO. 095, 2021 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING CONVEYANCE OF A PERMANENT NON-EXCUSIVE UTILITY EASEMENT ON PROPERTY JOINTLY OWNED BY THE CITY AND THE CITY OF LOVELAND AT THE NORTHERN COLORADO REGIONAL AIRPORT FOR THE DISCOVERY AIR DEVELOPMENT WHEREAS, the City of Fort Collins (“Fort Collins”) and the City of Loveland ("Loveland") (collectively, the “Cities”) jointly own property located in Loveland, Colorado (the "Property") known as the Northern Colorado Regional Airport (the “Airport”) and WHEREAS, the Cities currently operate and maintain the Airport pursuant to that certain Amended and Restated Intergovernmental Agreement for the Joint Operation of the Fort Collins-Loveland Airport dated January 22, 2015, as amended (the “IGA”); and WHEREAS, in connection with the planned development of certain undeveloped real property on the Airport leased to and to be developed by Discovery Air LLC (“Developer”) for aeronautical uses, Loveland Utilities has requested a permanent non-exclusive easement for installation of Loveland-owned utility systems to serve the Developer’s leased property (the “Easement”) over and across that portion of the Airport property legally described on Exhibit A and depicted on Exhibit B attached hereto and incorporated herein by this reference (the “Easement Property”); and WHEREAS, the Cities desire to grant the Easement on the terms and conditions more fully set forth in the Grant of Utility Easement attached hereto as Exhibit C and incorporated herein by reference (the “Easement Agreement”); and WHEREAS, City Code Section 23-111(a) 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 interest 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 City's conveyance of the Easement on the terms and conditions set forth in the Easement Agreement for less than fair market value serves a bona fide public purpose and is in the best interests of the City as required by City Code Section 23-114 because: a. The use to which the Easement Property will be put promotes health, safety or general welfare and benefits a significant segment of the citizens of Fort Collins by facilitating private investment in and improvement of the Airport and the users it serves, -2- including provision of many important emergency response and safety functions, such as medevac flights and aerial firefighting operations, and the improvements to be constructed by Developer that will provide revenue and revert to the Cities and continue to serve the Airport after the expiration of the lease; b. The use to which the Easement Property will be put supports one (1) or more of the City Council's goals, adopted policies, projects or plans, including the Airport Master Plan and the Developer’s lease and development of Airport property, both of which were approved by Council; c. The financial support provided by the City through the below-market disposition of the Easement Property will be leveraged with other funding or assistance by enabling the construction and operation of new on-Airport development at Developer’s cost, which will provide an ongoing revenue stream to the Airport; d. The sale or lease will not result in any direct financial benefit to any private person or entity, except to the extent such benefit is only an incidental consequence and is not substantial relative to the public purpose being served because it will enable development at the Airport for the benefit of the Cities and the Developer will not receive any benefit different from that afforded to all customers to which Loveland provides utility services; and e. Granting the Easement for less than fair market rent will not interfere with current City projects or work programs, hinder workload schedules or divert resources needed for primary City functions or responsibilities and will ultimately benefit the Airport and the Cities. Section 3. That the Mayor is hereby authorized to execute the Easement Agreement substantially in the form attached hereto with such modifications or 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 or effectuate the purposes of this Ordinance. -3- Introduced, considered favorably on first reading, and ordered published this 20th day of July, A.D. 2021, and to be presented for final passage on the 4th day of August, A.D. 2021. __________________________________ Mayor ATTEST: _____________________________ Interim City Clerk Passed and adopted on final reading on this 4th day of August, A.D. 2021. __________________________________ Mayor ATTEST: _____________________________ Interim City Clerk A PARCEL OF LAND SITUATE IN THE EAST HALF OF SECTION 33, TOWNSHIP 6 NORTH, RANGE 68 WEST OF THE SIXTH PRINCIPAL MERIDIAN; TOWN OF LOVELAND, COUNTY OF LARIMER, STATE OF COLORADO; BEING A PORTION OF TRACT B, BARNSTORM SECOND ADDITION TO THE CITY OF LOVELAND, AND BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHEAST CORNER OF SECTION 33 FROM WHICH THE EAST QUARTER CORNER OF SECTION 33 BEARS S00°24'16"E A DISTANCE OF 2,599.35 FEET AND CONSIDERING ALL BEARINGS HEREIN RELATIVE THERETO; THENCE ON THE EAST LINE OF THE NORTHEAST QUARTER OF SAID SECTION 33, S00°24'16"E A DISTANCE OF 1964.13 FEET; THENCE S89°35'44"W A DISTANCE OF 40.49 FEET TO THE POINT OF BEGINNING; THENCE S70°50'42"W A DISTANCE OF 1182.50 FEET; THENCE S20°15'13"E A DISTANCE OF 47.25 FEET; THENCE S70°13'51"W A DISTANCE OF 216.15 FEET; THENCE S19°43'04"E A DISTANCE OF 1107.97 FEET; THENCE N70°16'56"E A DISTANCE OF 924.60 FEET; THENCE N00°02'13"E A DISTANCE OF 815.53 FEET; THENCE ON A CURVE TO THE RIGHT HAVING A CENTRAL ANGLE OF 09°37'55", A RADIUS OF 865.0 FEET, AN ARC LENGTH OF 145.42 FEET, AND A CHORD THAT BEARS N04°51'11"E A DISTANCE OF 145.24 FEET; THENCE N09°40'05"E A DISTANCE OF 280.23 FEET TO THE POINT OF BEGINNING; SAID PARCEL CONTAINS 29.9 ACRES (1,301,431.40 SQUARE FEET) MORE OR LESS AND IS SUBJECT TO ALL RIGHTS-OF-WAY, EASEMENTS, AND RESTRICTIONS NOW IN USE OR OF RECORD. A1 300 EXHIBIT A2 S89"35' 44 "W 40.49' � c�- �s�� GU POINT OF BEGINNING 0 Lr9"37'55" R=865.00' L=145.42' CH=145.24' N04"51 '11 "E Noo·o2•13"E 815.53' 300 600 ------ii N scale 1"=300' feet z 0 CD 0 )> • {I) N -1-i:,,.{/) �O> �Ii CD N rr, (}l )> <O ::::0 <O Z0J G') U!, NORTHEAST CORNER SECTION 33, T.6N., R.68W EARHART RD. EAST QUARTER CORNER SECTION 33, T.6N., R.68W DATE: JULY 06, 2021 JOB NO. 0732.0381.00 SHEET 1 OF 1 I=? 748 'Mlalera Way, Suite 200 Fart Calllr11, Colorado �.__ ________________________________ P=hon __ e: .... 9 .... 70=.22=6.055........,7 __ ____. A PARCEL OF LAND SITUATE IN THE EAST HALF OF SECTION 33, TOWNSHIP 6 NORTH, RANGE 68 WEST OF THE SIXTH PRINCIPAL MERIDIAN; TOWN OF LOVELAND, COUNTY OF LARIMER, STATE OF COLORADO; BEING A PORTION OF TRACT B, BARNSTORM SECOND ADDITION TO THE CITY OF LOVELAND, AND BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHEAST CORNER OF SECTION 33 FROM WHICH THE EAST QUARTER CORNER OF SECTION 33 BEARS S00°24'16"E A DISTANCE OF 2,599.35 FEET AND CONSIDERING ALL BEARINGS HEREIN RELATIVE THERETO; THENCE ON THE EAST LINE OF THE NORTHEAST QUARTER OF SAID SECTION 33, S00°24'16"E A DISTANCE OF 2,599.35 FEET; THENCE S00°37'06"W A DISTANCE OF 349.93 FEET TO THE POINT OF BEGINNING; THENCE N 89^06'46" W A DISTANCE OF 101.02 FEET; THENCE S 0^53'14" W A DISTANCE OF 10.00 FEET; THENCE S 89^06'46" E A DISTANCE OF 100.85 FEET; THENCE N 0^06'04" W A DISTANCE OF 10.00 FEET TO THE POINT OF BEGINNING; SAID PARCEL CONTAINS 0.023 ACRES (1,009 SQUARE FEET) MORE OR LESS AND IS SUBJECT TO ALL RIGHTS-OF-WAY, EASEMENTS, AND RESTRICTIONS NOW IN USE OR OF RECORD. B1 B2 Rev. 1-2021 GRANT OF UTILITY EASEMENT THIS GRANT OF UTILITY EASEMENT is made and entered into by and between the CITY OF LOVELAND, COLORADO, a Colorado home rule municipal corporation (“Loveland”) and the CITY OF FORT COLLINS, COLORADO, a Colorado home rule municipal corporation (“Fort Collins”) (jointly “Grantor”), and LOVELAND, with an address of 500 E. Third Street, Loveland, Colorado 80537. This Grant of Utility Easement is effective as of the date of the Grantor’s Official Acceptance in the signature blocks below . WITNESSETH: FOR GOOD AND VALUABLE CONSIDERATION, the adequacy and receipt of which is hereby acknowledged, Grantor has this day bargained, sold, conveyed, transferred, and deliver ed unto Loveland, its successors, and assigns , in perpetuity, a non-exclusive easement in, over, under, through, and across the real property described below for purposes of constructing, repairing, replacing, relocating, inspecting, operating, maintain ing, and accessing Loveland- owned utility systems across, through, upon, and under the real property described on the attached Exhibits A and B (the “Easement Area”); provided, however, that Loveland shall restore the ground surface to its prior condition after any disturbance of such surface . The term “Loveland-owned utility systems”, means above and below ground wires, lines, cables, ducts, conduits, pipes, pumps, pedestals, risers, poles, vaults, manholes , fire hydrants, pull boxes, and any other equipment, appurtenances , and structures associated with electric, water, wastewater, communications, and stormwater systems that are owned and operated by Loveland. Grantor is prohibited from constructing or placing on any part of the Easement Area without prior written approval from the Director of the Northern Colorado Regional Airport in consultation with the Loveland Department of Water and Power , any fence or gate, building, above or below ground utility systems or appurtenances not owned or maintained by Loveland, or any other permanent or substantial structure. Grantor is prohibited from making or permitting any use of the Easement Area that would impair, impede , or interfere with Loveland’s access to or along the easement, or Loveland’s full free use and exercise of the easement. Loveland shall be permitted to immediately remove without liability for da mages any obstruction prohibited by this easement that interferes with Loveland’s access to Loveland-owned utility systems or impairs Loveland’s full free use and exercise of the easement. If the Grantor or their successors and assign s or le ssees owns the trees and other vegetation on the Easement Area, and the Grantor acknowledges, for itself and for all successors and assigns, that this easement provides Loveland with the authority to cut and remove trees and other vegeta tion that encroaches upon the Easement Area if, in the sole discret ion of Loveland, such trees or vegetation interfere with Loveland’s use and enjoyment of this easement. The Easement Area hereby granted, situated in Larimer County, C olorado, is des c ribed as follows: Exhibit A – Easement Area A Legal Description (A1) and Drawing (A2) Exhibit B – Easement Area B Legal Description (B1) and Drawing (B2) EXHIBIT C Rev. 1-2021 Due to the “blanket” nature of this Grant of Utility Easement, as the Loveland-owned utility systems are installed within the Easement Area over time, Loveland shall provide Grantor with updated “as -built” legal descriptions identifying the areas in which the utilities are located. Loveland may require the Lessee to provide such legal descriptions at Lessee’s sole cost and expense. Such “as built” legal desc riptions shall be executed by the Director of the Northern Colorado Regional Airport and recorded as addenda to this Grant of Utility Easement. Upon recording of addenda identifying such specific easement areas for all Loveland -owned utility systems requir ed for development of the prope rty on which the Easement Area is located, the blanke t easement granted herein shall be deemed modified to include only the specific ally described easement areas set forth on such addenda. TO HAVE AND TO HOLD said easement unto Loveland, its successors, and assigns forever. This perpetual easement and the rights, benefits, and obligations created hereby constitute a burden upon the estate of Grantor in the underlying lands and shall run with the land and be binding upon Grantor and its successors, personal representatives, assigns, and heirs. Grantor does hereby covenant with Loveland that it is lawfully seized and possessed of the real property above described, that it has a good and lawful right to convey the easement herein granted, that the easement is free and clear of all liens and encumbrances, and that it will forever warrant and defend the title thereto against lawful claims of all persons whomsoever. IN WITNESS WHEREOF, Grantor has executed this Grant of Utility Easement on the date below . CITY OF LOVELAND, COLORADO a Colorado home rule municipal corporation: By: Date: ____________________________________ Print Name: Title: ATTEST: City Clerk APPROVE AS TO FORM: Assistant City Attorney EXHIBIT C Rev. 1-2021 CITY OF FORT COLLINS, COLORADO a Colorado home rule municipal corporation By: Date: ____________________________________ Prin t Name: Title: ATTEST: City Clerk APPROVE AS TO FORM: _____________________________ Judy Schmidt, Senior Assistant City Attorney EXHIBIT C Rev. 1-2021 LESSEE ACKNOWLEDGEMENT With respect to and to the extent of its leasehold interest in the Easement Area arising from the Northern Colora do Regional Airport Ground Lease Agreement dated January 16, 2019 (the “Lease Agreement”), Discovery Air, LLC (“Lessee”) hereby joins in this Grant of Utility Easement and consents hereto. Lessee acknowledges and agrees that the granting of this Grant of Utility Easement by Loveland and Fort Collins does not constitute a default under the Lease Agreement. DISCOVERY AIR, LLC By: Title: Date: State of __________________ ) ) ss County of ________________ ) Acknowledged before me this ____ day of ___________, 20___, by (Name) ______________________________ as (Title) _____________________________. Wit ness my hand and seal. My commission expires: ____________________. (S E A L) Notary Public [INSERT LENDER SIGNATURE BLOCK AS NEEDED] OFFICIAL ACCEPTANCE BY THE CITY OF LOVELAND APPROVED AS TO FORM: _________________________________________ ______________________ Stephen C. Adams , City Manager Assistant City Attorney ATTEST: _____________________ ________________ City Clerk Date EXHIBIT C A PARCEL OF LAND SITUATE IN THE EAST HALF OF SECTION 33, TOWNSHIP 6 NORTH, RANGE 68 WEST OF THE SIXTH PRINCIPAL MERIDIAN; TOWN OF LOVELAND, COUNTY OF LARIMER, STATE OF COLORADO; BEING A PORTION OF TRACT B, BARNSTORM SECOND ADDITION TO THE CITY OF LOVELAND, AND BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHEAST CORNER OF SECTION 33 FROM WHICH THE EAST QUARTER CORNER OF SECTION 33 BEARS S00°24'16"E A DISTANCE OF 2,599.35 FEET AND CONSIDERING ALL BEARINGS HEREIN RELATIVE THERETO; THENCE ON THE EAST LINE OF THE NORTHEAST QUARTER OF SAID SECTION 33, S00°24'16"E A DISTANCE OF 1964.13 FEET; THENCE S89°35'44"W A DISTANCE OF 40.49 FEET TO THE POINT OF BEGINNING; THENCE S70°50'42"W A DISTANCE OF 1182.50 FEET; THENCE S20°15'13"E A DISTANCE OF 47.25 FEET; THENCE S70°13'51"W A DISTANCE OF 216.15 FEET; THENCE S19°43'04"E A DISTANCE OF 1107.97 FEET; THENCE N70°16'56"E A DISTANCE OF 924.60 FEET; THENCE N00°02'13"E A DISTANCE OF 815.53 FEET; THENCE ON A CURVE TO THE RIGHT HAVING A CENTRAL ANGLE OF 09°37'55", A RADIUS OF 865.0 FEET, AN ARC LENGTH OF 145.42 FEET, AND A CHORD THAT BEARS N04°51'11"E A DISTANCE OF 145.24 FEET; THENCE N09°40'05"E A DISTANCE OF 280.23 FEET TO THE POINT OF BEGINNING; SAID PARCEL CONTAINS 29.9 ACRES (1,301,431.40 SQUARE FEET) MORE OR LESS AND IS SUBJECT TO ALL RIGHTS-OF-WAY, EASEMENTS, AND RESTRICTIONS NOW IN USE OR OF RECORD. A1 EXHIBIT C 300 EXHIBIT A2 S89"35' 44 "W 40.49' � c�- �s�� GU POINT OF BEGINNING 0 Lr9"37'55" R=865.00' L=145.42' CH=145.24' N04"51 '11 "E Noo·o2•13"E 815.53' 300 600 ------ii N scale 1"=300' feet z 0 CD 0 )> • {I) N -1-i:,,.{/) �O> �Ii CD N rr, (}l )> <O ::::0 <O Z0J G') U!, NORTHEAST CORNER SECTION 33, T.6N., R.68W EARHART RD. EAST QUARTER CORNER SECTION 33, T.6N., R.68W DATE: JULY 06, 2021 JOB NO. 0732.0381.00 SHEET 1 OF 1 I=? 748 'Mlalera Way, Suite 200 Fart Calllr11, Colorado �.__ ________________________________ P=hon __ e: .... 9 .... 70=.22=6.055........,7 __ ____. EXHIBIT C A PARCEL OF LAND SITUATE IN THE EAST HALF OF SECTION 33, TOWNSHIP 6 NORTH, RANGE 68 WEST OF THE SIXTH PRINCIPAL MERIDIAN; TOWN OF LOVELAND, COUNTY OF LARIMER, STATE OF COLORADO; BEING A PORTION OF TRACT B, BARNSTORM SECOND ADDITION TO THE CITY OF LOVELAND, AND BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHEAST CORNER OF SECTION 33 FROM WHICH THE EAST QUARTER CORNER OF SECTION 33 BEARS S00°24'16"E A DISTANCE OF 2,599.35 FEET AND CONSIDERING ALL BEARINGS HEREIN RELATIVE THERETO; THENCE ON THE EAST LINE OF THE NORTHEAST QUARTER OF SAID SECTION 33, S00°24'16"E A DISTANCE OF 2,599.35 FEET; THENCE S00°37'06"W A DISTANCE OF 349.93 FEET TO THE POINT OF BEGINNING; THENCE N 89^06'46" W A DISTANCE OF 101.02 FEET; THENCE S 0^53'14" W A DISTANCE OF 10.00 FEET; THENCE S 89^06'46" E A DISTANCE OF 100.85 FEET; THENCE N 0^06'04" W A DISTANCE OF 10.00 FEET TO THE POINT OF BEGINNING; SAID PARCEL CONTAINS 0.023 ACRES (1,009 SQUARE FEET) MORE OR LESS AND IS SUBJECT TO ALL RIGHTS-OF-WAY, EASEMENTS, AND RESTRICTIONS NOW IN USE OR OF RECORD. B1 EXHIBIT C B2 EXHIBIT C