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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 12/16/2003 - SECOND READING OF ORDINANCE NO. 167, 2003 APPROVIN ITEM NUMBER 9 AGENDA ITEM SUMMARY DATE December 16, 2003 FORT COLLINS CITY COUNCIL STAFF Mark Sears Wally Cameron SUBJECT Second Reading of Ordinance No 167, 2003, Approving the Terms of the Lease Agreements for the Pulliam Ranch RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading EXECUTIVE SUMMARY This Ordinance, which was unanimously adopted on First Reading on December 2 2003, allows the City to submit the lease to the County in order for the leased property to be removed from the property tax rolls during the term of the lease and option contracts to purchase the Pulliam Ranch over a five year period The City will have exclusive use rights to the leased portions of the Ranch up to the time of purchase and thus has agreed to remove the property tax burden from the Lessors ORDINANCE NO 167 2003 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROVING THE TERMS OF THE LEASE AGREEMENTS FOR THE PULLIAM RANCH WHEREAS,the City will be leasing and will have an option to purchase certain lands known as the Pulliam Ranch located in Sections 15 16 21 22 and 27 of Township 6 North Range 70 West of the 6th P M Lanmer County Colorado(the Property )pursuant to Lease Agreements with the Pulliam Charitable Trust and the Pulliam Marital Trust (the `Lease Agreements ) and WHEREAS, the City will lease certain of these lands for a period of at least one year up to a period of four years with a lease rate based on 5% of the 2003 appraised value of any lease and optioned property and WHEREAS under the Lease Agreements the gross annual rent paid by the City for the lease and optioned properties assuming options to purchase are not exercised before the end of the lease period will be $207 380 paid in advance for the initial lease year, $142 100 for the second lease year $84 800 for the third lease year and $55 898 for the fourth lease year and WHEREAS the Lease Agreements extend through December 15 2007 contingent upon the City s annual appropriation of sufficient funds to meet the City s lease obligations and WHEREAS sufficient funds have been budgeted and appropriated by the City to meet its obligations for the first year of the Lease Agreements and WHEREAS,in order for the Property to be exempt from taxation Section31-15-801 CRS requires that the Lease Agreements and the terms thereof be approved by ordinance by the City Council and WHEREAS the City Council wishes to approve the Lease Agreements by ordinance so that the Property may be removed from the tax rolls NOW THEREFORE BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that the City Council hereby approves the terms and conditions of the Lease Agreements between the City and the Pulliam Charitable Trust and the Pulliam Marital Trust for the lease of lands in Sections 15 16 21 22 and 27 of Township 6 North Range 70 West of the 6th P M Larimer County Colorado drafts of which Lease Agreements dated November 28 2003 are on file in the office of the City Clerk and available for public inspection Introduced and considered favorably on first reading and ordered published this 2nd day of December A D 2003, and to be presented for final passage on the 16th day of December A D 2003 G Mayor ATTEST Chief Deputy City Clerk Passed and adopted on final reading this 16th day of December A D 2003 Mayor ATTEST City Clerk ITEM NUMBER 15 A-C AGENDA ITEM SUMMARY DATE December2, 2003 FORT COLLINS CITY COUNCIL STAFF Mark Sears Wally Cameron SUBJECT Items Relating to the Pulliam Ranch Leases RECOMMENDATION Staff recommends adoption of the Resolutions and the Ordinance on First Reading FINANCIAL IMPACT The gross annual rent paid by the City for the lease and optioned properties assuming options to purchase are not exercised before the end of the lease period will be $207 380 for the initial lease year $142 100 for the second lea ye 84800 for,the gird lease year, and $55 898 for the fourth lease year The City will receive $650 per month from e rest¢ential sublease a total of$15 600 over the 2 year lease period The City could receive up to $18 000 over the two-year term of the agricultural lease depending on the actual number of livestock on the property during the months June — October These lease amounts will be applied to offset the annual lease and option payments from the City to the Pulliam Trusts EXECUTIVE SUMMARY A Resolution 2003-131 (;provin the b f -Leased Property at 8281 West County Road 32 C Lod radq, B Resolution 2003-132 Approving the Lease of City-Owned Property and Sublease of City- leased Property in Sections 15 16 17 18 20 21 22 and 27 of Township 6 North Range 70 West of the 6th P M Lanmer County, Colorado C First Reading of Ordinance No 167 2003, Approving the Terms of the Lease Agreements for the Pulliam Ranch Adoption of the Resolutions will allow the City to recover a portion of the annual lease amounts due to the Pulliam Trusts by leasing the areas of the Pulliam Ranch which are to be purchased and subleasing those areas and the existing residence which are leased and optioned for purchase December 2, 2003 -2- Item No 15 A-C Adoption of the Ordinance will allow the City to submit the lease to the County in order for the leased property to be removed from the property tax rolls during the term of the lease and option contracts to purchase the Pulliam Ranch over a five year period The City will have exclusive use rights to the leased portions of the Ranch up to the time of purchase and thus has agreed to remove the property tax burden from the Lessors BACKGROUND Staff has negotiated Purchas OpioAgregn is th o Pulham Trusts for 12 tracts of land which total approximately 2 580 �res to be red f the Natural Areas program The Seller has agreed to sell the 12,tracts or five ygrs with lease and option to purchase the tracts that are not purchased at the initial closing of the transactions One of the selling trusts will donate over three years a total of $500 000 toward the purchase price of the tracts The optioned tracts will be leased to the City at an annual rate of 5% of the current appraised value of the tracts The total maximum amount of the leases will be $490 278 over the five year period The total purchase and lease amount being paid, assuming all options to purchase all tracts are exercised will be $5 790 278 The property was appraised this year for$5,800 000 A tenant is currently leasing a residence located on Tract A of the Pulliam Marital Trust property Resolution 2003-131 would aloes t e s e enant to continue to lease the residence There is also an existing fa g and�grzing t a o he Pulham Ranch property Resolution 2003-132 would allow that to nt to con�tlnue rt o rations o the property The Pulliam Ranch is located just west of Masonville in the Foothills Focus Area on the Natural Areas Land Conservation Map This unique ranch is one of the few remaining large undeveloped parcels of foothills properties in close proximity to Fort Collins The ranch has high ecological geological and recreational values It has redstone cliffs and large grass meadows that transition to the foothills and Ponderosa Pine and Douglas Fir forests The property adjoins US Forest Service land to the west Portions of the forest were burned during the Bobcat fire a few summers ago There are several high open meadows that are attractive to wildlife Mountain lion, bear deer elk wild turkey and coyote are just some of the wildlife found on the ranch " Natural Areas staff with mp from the*publ a other agencies will prepare a management plan for the site over the next o years "S fff cipates that the property ultimately will be used as a natural area that will be opened to the public for hiking biking, horseback riding, picnicking wildlife watching and other appropriate natural area activities However, other land conservation options may be considered, such as placing a conservation easement on all or part of the land and then conveying all or a portion of the land to a conservation buyer