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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 07/19/2022 - FIRST READING OF ORDINANCE NO. 087, 2022, AUTHORIZ Agenda Item 4 Item # 4 Page 1 AGENDA ITEM SUMMARY July 19, 2022 City Council STAFF Keith Hanson, Real Estate Manager Sue Beck-Ferkiss, Social Policy and Housing Programs Manager Ingrid Decker, Legal SUBJECT First Reading of Ordinance No. 087, 2022, Authorizing the Exchange of Stormwater Easements Between the City of Fort Collins and Sun Foothills Fort Collins, LLC EXECUTIVE SUMMARY The purpose of this item is to authorize the conveyance of a stormwater drainage easement to Sun Foothills Fort Collins, LLC (“Sun”) on undeveloped City-owned real property located south of Trilby Road and east of South College Avenue (Assessor’s Parcel No. 9613200927). This easement is necessary for Sun to develop its property adjacent and to the north of the City’s property. In exchange, Sun will convey to the City a stormwater drainage easement on its property that will allow the City, or future owner, to use Sun’s property for stormwater drainage from the City’s property when developed. The execution of the Reciprocal Stormwa ter Drainage Easement Agreement will effectuate the reciprocal conveyances. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION The City owns the 17-acre property located south of Trilby Road and ea st of South College Avenue (Assessor’s Parcel No. 9613200927) as part of the City’s Affordable Housing Land Bank Program for the future development of affordable housing. Sun is developing housing directly to the north and adjacent to the City’s property. As part of the development requirements, Sun must maintain a retainage pond on 7.84 acres of its property. Historically, stormwater has naturally drained from Sun’s property onto the inner northern edge of the City’s property. To maximize drainage efficiency, Sun desires to use this same drainage path through an area of 1.07 acres on the City’s property to reach the retainage pond (see attached map). Since Sun’s development will increase the water flow in this path beyond historic, natural volumes, a drainage easement from the City is necessary if this same path is to be utilized. When the City’s property develops into affordable housing, it too, will need to create and maintain a retainage pond on its property for the increased stormwater drainage volume. However, this requirement can be avoided if the City is able to divert the stormwater to a retainage pond on someone else’s property via a drainage easement. Without a retainage pond requirement, and by using the pond on Sun’s property, more land will be available for the construction of more affordable units. Therefore, the City and Sun have negotiated the Reciprocal Stormwater Drainage Easement Agreement that allows Sun to increase stormwater drainage across the City’s property, and the City w ill be able to use Sun’s retainage pond for stormwater drainage associated with the development of future affordable housing on the Agenda Item 4 Item # 4 Page 2 City’s property. Sun will design and construct the retainage pond now so it will accommodate both its current housing development and the future maximum development of the City’s property. Additionally, Sun will be responsible for all maintenance costs associated with both easements; the City will not be responsible for any cost. CITY FINANCIAL IMPACTS There is no financial impact to the City. The exchange of easements (the City’s granting of 1.07 acres on its property for acquiring the use of Sun’s 7.84-acre retainage pond) and Sun’s responsibility for all maintenance costs for both easements, is considered a mutual and beneficial equal value exchange for both parties. ATTACHMENTS 1. Vicinity Map (PDF) ATTACHMENT 1 -1- ORDINANCE NO. 087, 2022 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE EXCHANGE OF STORMWATER EASEMENTS BETWEEN THE CITY OF FORT COLLINS AND SUN FOOTHILLS FORT COLLINS, LLC WHEREAS, the City is the owner of a parcel of undeveloped real property located south of Trilby Road and east of South College Avenue as shown and described on Exhibit “A”, attached and incorporated herein by reference, that is part of the City’s Affordable Housing Land Bank Program (the “City Property”); and WHEREAS, Sun Foothills Fort Collins, LLC (“Sun”) intends to develop housing on a parcel of land directly to the north and adjacent to the City Property as shown and described on Exhibit “B”, attached and incorporated herein by reference (the “Sun Property”); and WHEREAS, Sun has requested a stormwater drainage easement on a 1.07 acre portion of the City Property where stormwater has historically flowed, as shown and described on Exhibit “C”, attached and incorporated herein by reference (the “Sun Easement”), because Sun’s development will increase the water flow in this path beyond the historic volumes; and WHEREAS, to obtain its development approvals Sun is also required to construct a stormwater retention pond on 7.84 acres of the Sun Property; and WHEREAS, the purpose of the Affordable Housing Land Bank Program is to acquire and hold land for future development of affordable housing; and WHEREAS, when the City Property eventually develops, it will also need to provide stormwater retention; so, in exchange for the City conveying a stormwater easement to Sun, Sun has agreed to convey an easement to the City for the benefit of the City Property, that will allow the City Property to divert stormwater into the pond on the Sun Property, as shown and described on Exhibit “D”, attached and incorporated herein by reference (the “City Easement”), leaving more land available for development on the City Property; and WHEREAS, as part of this easement exchange Sun will maintain its pond as well as its stormwater drainage improvements on the City Property; and WHEREAS, the value of the City Easement is at least equal to if not exceeding the value of the Sun Easement, so no additional compensation from Sun to the City for the Sun Easement is required; 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. -2- 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 Sun Easement in exchange for the City Easement on the terms and conditions described herein is in the best interests of the City. Section 3. That the City Council hereby authorizes the Mayor to execute a Reciprocal Stormwater Drainage Easement Agreement to convey the Sun Easement to and accept the City Easement from Sun, 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 descriptions of the Easements, as long as such changes do not materially increase the size or change the character of the interests to be conveyed. Introduced, considered favorably on first reading and ordered published this 19th day of July, A.D. 2022, and to be presented for final passage on the 16th day of August, A.D. 2022. Mayor ATTEST: City Clerk Passed and adopted on final reading this 16th day of August, A.D. 2022. Mayor ATTEST: City Clerk