HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 09/07/2021 - FIRST READING OF ORDINANCE NO. 106, 2021, AUTHORIZ Agenda Item 9
Item # 9 Page 1
AGENDA ITEM SUMMARY September 7, 2021
City Council
STAFF
Tracy Dyer, Engineering Project Manager
Keith Hanson, Real Estate Manager
Ryan Malarky, Legal
SUBJECT
First Reading of Ordinance No. 106, 2021, Authorizing the Acquisition by Eminent Domain Proceedings of
Certain Lands Necessary to Construct Public Improvements for the North Mason Stormwater Project and the
North Mason Street Alignment from Alpine Street to Hickory Street.
EXECUTIVE SUMMARY
The purpose of this item is to o btain authorization from City Council to use eminent domain, if deemed
necessary, to acquire property interests needed to construct improvements from Alpine Street to Hickory
Street for the North Mason Stormwater Project and the North Mason Street alignment.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
BACKGROUND / DISCUSSION
North Mason Street was first included in the City's transportation planning Master Street Plan in March 2000.
The Plan identifies North Mason Street as a planned collector street beginning at its intersection with Hemlock
Street to the south and ending to the north where State Highway 1 and U.S. Highway 287 meet. North Mason
Street would be a parallel corridor to North College Avenue (U.S. 287), which continues to see increased
volumes of traffic. The Colorado Department of Transportation, in partnership with the City and Larimer
County, developed an Access Control Plan in April 2000. The Access Control Plan was intended to be a
detailed, long-range plan addressing how access in the North College Avenue corridor should be treated, the
cost for the recommended access modifications, and the relative priority of the improvements. That plan
identifies a series of raised medians within North College Avenue to limit access that causes further congestion
and accidents within the corridor. The City’s Master Street Plan aids in providing alternative access and
circulation to adjacent parcels within corridors that parallel North College Avenue, one of whic h would be North
Mason Street. A large portion of the improvements identified in CDOT’s Access Control Plan were constructed
between 2010 and 2015.
The alignment of North Mason Street is generally bounded by the Larimer and Weld Canal to the north, North
College Avenue to the east, the Poudre River to the south, and the Union Pacific Railroad to the west. This
general area has a history of poor drainage conditions, and the existing portion of North Mason Street between
Alpine Street and Hemlock Street currently lacks a stormwater drainage system.
The lands sought to be acquired through this Ordinance would provide a continuous alignment of North Mason
Street between Alpine Street and Hickory Street, by extending North Mason Street from Hemlock Street
northward to Hickory Street. This continuous alignment comes in advance of the City's Stormwater Capital
Improvements Project, which includes proposed North Mason Street stormwater improvements.
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This project has been included in the Utility groups' capital projects master list and was moved up in priority
when a funding contribution by the North College Urban Renewal Authority became available. The Stormwater
Capital Improvements Project is a key piece of infrastructure that will aid in the development and
redevelopment of the North College corridor. The project also includes preliminary design of water and
wastewater infrastructure parallel to the proposed North Mason storm sewer.
The property interests sought to be acquired through this ordinance includ e only right-of-way at this time. Of
the parcels for which authorization is sought, there are two that are almost certainly owned by the City. The
general area where the parcels are located was originally platted in 1892, which included the delineation of
certain public streets. In the 1920s, some portion of those streets may have been vacated, but the property
deeds are inconsistent with respect to the vacation of streets. Staff has reviewed all available documentation
in City archives and the Larimer County Clerk & Recorder’s records and is reasonably confident that the City
owns these two parcels. However, in an abundance of caution City staff is including these City -owned parcels
in the request for eminent domain authorization as a precaution in case a property owner produces
documentation that proves the City does not own those parcels. Including the City -owned parcels does not
require the City to expend money for those parcels. It does allow staff to continue with the acquisition process
if it is shown the City does not own them without returning to Council for further authorization and restarting the
eminent domain timeline.
If and when the subject parcels under this Ordinance develop or redevelop, the owner would be responsible for
the dedication of necessary easements to the City. Given that construction for the project is currently
scheduled to begin in 2022, timely acquisition of the property interests is necessary. Staff has been meeting
with the affected property owners to discuss the project design and the potential impacts to their respective
properties.
At those meetings, staff notified the property owners that staff would be asking Council to authorize the use of
eminent domain to acquire necessary property interests, if needed. In addition, the affected property owners
were notified by certified mail of this request to Council for authorization of eminent domain prior to the first
reading of this Ordinance. Staff will continue to work with property owners prior to acquiring needed pr operty
interests to address individual site considerations while still achieving the improvements goals of the project.
Colorado statute requires that the City inform property owners about the possible use of eminent domain and
their rights in an official Notice of Intent to Acquire letter. The authorization from Council is needed prior to
sending this information to property owners. The Notice of Intent to Acquire letter is the first official step in the
acquisition phase and happens prior to any appr aisals. Staff fully intends to negotiate in good faith with all
affected owners and is optimistic that all property negotiations can be completed prior to the start of the
project. However, staff is requesting authorization to use eminent domain in the ev ent an agreement cannot be
reached with the owners to ensure that the project can proceed in an efficient and timely manner.
How and When City Staff Uses Eminent Domain
When staff is planning a project, it considers the amount of land required and whethe r the City will need to
acquire private property regardless of whether an agreement with the property owner to purchase the land can
be reached. If an acquisition is necessary, staff requests Council to authorize the use of eminent domain if
necessary. Once an ordinance is adopted, the team continues to coordinate with the impacted property
owners to finalize project plans. Once plans are finalized, the City sends the property owner a Notice of Intent
to Acquire letter by certified mail. The letter explains what the City needs for the project. Then the City gets an
appraisal of the property to determine its fair market value and sometimes the owner will get their own
appraisal. Based on the value of the property interest to be acquired, the owner may b e entitled to be
reimbursed by the City for their appraisal.
The City then makes the owner an offer for the property it needs based on fair market value. The City and the
property owner negotiate to reach an agreement to buy the necessary property interests. If an agreement
cannot be reached, the City may file an eminent domain case in court. The City can then receive possession
and use of the property to keep the project on schedule while the City and property owner continue to
negotiate the price. If the City and the owner can’t reach agreement, the court decides what the City must pay
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for the property it needs. In most cases, however, the City and the property owner reach an agreement before
the case gets to that point.
Staff recommends that Council authorize the use of eminent domain for this project to provide a fair and
equitable process that will allow the City to meet project design and construction deadlines while still ensuring
all property owners are fairly compensated for the property rights the City acquires. Condemnation will only be
used as necessary if the City is unable to reach an agreement with a property owner through good faith
negotiations.
Obtaining eminent domain authority will:
• Allow staff to develop project timelines with more certainty.
• Help keep a planned property acquisition schedule, reducing the risk and cost of unexpected future delays.
• Ensure consistent messaging to affected property owners.
CITY FINANCIAL IMPACTS
This action will not authorize any new funding for the project but will only authorize acquisition of the identified
parcels. The existing funding in place for the design and construction of the improvements is as follows:
Funding Summary Amount Appropriated
N. College Urban Renewal Authority $300,000 Yes
Transportation Capital Expansion Fee Reserves 2019-2020 $399,120 Yes
Transportation Service Funds - Ongoing Revenue $880 Yes
Total: $700,000
BOARD / COMMISSION RECOMMENDATION
Staff has discussed the project with the North College Plan Area Citizen Advisory Group, which provides input
to the Urban Renewal Authority.
PUBLIC OUTREACH
Staff and an outside acquisition consultant have met or conversed individually with property owners on multiple
occasions regarding design and construction details. Staff has also attempted to discuss the project with the
single existing business that is affected by the acquisition. That property owner declined to discuss any of the
details of the project with staff or their agents. Staff will remain available to discuss the project with that
property owner.
ATTACHMENTS
1. Location Map (PDF)
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Project Location Map
Mason Property Acquisition
ATTACHMENT 1
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ORDINANCE NO. 106, 2021
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE ACQUISITION BY EMINENT DOMAIN PROCEEDINGS
OF CERTAIN LANDS NECESSARY TO CONSTRUCT PUBLIC IMPROVEMENTS
FOR THE NORTH MASON STORMWATER PROJECT AND NORTH MASON STREET
ALIGNMENT FROM ALPINE STREET TO HICKORY STREET
WHEREAS, the City is in the process of planning improvements to North Mason Street
from Alpine Street to Hickory Street including stormwater improvements and the extension of
North Mason Street from Hemlock Street north to Hickory Street (the “Project”); and
WHEREAS, the Project is necessary to address historically poor drainage conditions in
the existing North Mason Street corridor as well as to provide an alternative access and
circulation parallel to North College Avenue, which has seen increasing traffic volume, including
further congestion and accidents; and
WHEREAS, the Project is anticipated to include the installation of stormwater drainage
improvements and the construction of a new portion of North Mason Street, extending it north
from Hemlock Street to its intersection with Hickory Street; and
WHEREAS, to construct the Project, the City will need to acquire right-of-way from five
property owners, as described on Exhibits “A” through “G”, attached hereto and incorporated
herein by this reference (the “Property Rights”); and
WHEREAS, based on extensive research performed by City staff and an outside property
acquisition consultant, the parcels identified on Exhibit “F” and “G” appear to be City-owned
property (“City-Owned Parcels”); and
WHEREAS, because the property records for the Project area are inconsistent with
respect to whether certain public streets have been vacated, City staff is recommending that City
Council authorize eminent domain authority for the City-Owned Parcels; and
WHEREAS, including the City-Owned Parcels in this authorization will allow City staff
to acquire the parcels in the event it is proven the City does not own them, which will allow staff
to maintain the Project schedule without having to return to City Council for additional
authorization; and
WHEREAS, the authorization for acquisition by eminent domain of the City -Owned
Parcels does not require the City to acquire said parcels nor does it constitute an admission by
the City that the City does not own the City-Owned Parcels; and
WHEREAS, the City will negotiate in good faith for the acquisition of the Property
Rights from the owners thereof; and
WHEREAS, the acquisition of the Property Rights is desirable and necessary for the
construction of the Project, is in the City’s best interest, and enhances public health, safety, and
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welfare because it will allow for the construction of needed public infrastructure within the City;
and
WHEREAS, the acquisition of the Property Rights may, by law, be accomplished
through eminent domain.
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 authorizes the City Attorney and other
appropriate officials of the City to acquire the Property Rights for the City by eminent domain
proceedings.
Section 3. The City Council further finds that, in the event acquisition by eminent
domain of the Property Rights or any of them is commenced, immediate possession is necessary
for the public health, safety and welfare.
Introduced, considered favorably on first reading, and ordered published this 7th day of
September, A.D. 2021, and to be presented for final passage on the 21st day of September, A.D.
2021.
__________________________________
Mayor
ATTEST:
_______________________________
Interim City Clerk
Passed and adopted on final reading on the 21st day of September, A.D. 2021.
__________________________________
Mayor
ATTEST:
_______________________________
Interim City Clerk
EXHIBIT A
EXHIBIT A
EXHIBIT B
EXHIBIT B
EXHIBIT C
EXHIBIT C
EXHIBIT D
EXHIBIT D
EXHIBIT E
EXHIBIT E
EXHIBIT F
EXHIBIT F
EXHIBIT G
EXHIBIT G