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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 03/02/2004 - SECOND READING OF ORDINANCE NO. 035, 2004, AUTHORI ITEM NUMBER: 15 AGENDA ITEM SUMMARY DATE: March 2, 2004 FORT COLLINS CITY COUNCIL STAFF: Edith Felchle SUBJECT Second Reading of Ordinance No. 035, 2004, Authorizing the Conveyance of a Conservation Easement on a Portion of Running Deer Natural Area,Authorizing an Access Easement on a Portion of Running Deer Natural Area Adjacent to the Conservation Easement Area and Appropriating Revenues into the City's Natural Areas Fund. RECOMMENDATION Staff and the Natural Resources Advisory Board recommend adoption of the Ordinance on Second Reading. EXECUTIVE SUMMARY As Council was advised in a memo on the day of First Reading of this item(February 17,2004),the Conservation Easement proposed for a portion of Running Deer Natural Area has some non-typical language which GOCO added in its intent to further protect the GOCO investment in the form of grant funds used toward the acquisition of the property. The language requires that if the City conveys the property to an entity that is not eligible for GOCO funding, or if GOCO determines in its sole discretion that the conveyance of the property will reduce the scope or benefits intended to be accomplished with its grant, GOCO can require that the City pay to GOCO a share of the sales proceeds proportional to the GOCO grant and interest on the grant amount from the date of the grant. The significance of the language is that GOCO could be entitled to repayment in an amount that could substantially exceed its original grant amount if the City were ever to sell the property, even though the conservation easement remains in place and restricts the use of the property forever regardless of who owns the property. After a sale,the conservation easement would remain in place, and GOCO would continue to have rights (including a right to additional repayment) under the conservation easement. The repayment issue becomes increasingly substantial over time, as the amount of interest,and the potential sales value of the property,continue to increase. For example, if the Citywere to sell title to the Running Deer property to a third art in 100 ears the City would g P P Y party Y � Y owe GOCO 32% of the proceeds of the sale, plus 100 years of interest on the grant amount of $203,000. The City's Natural Areas Program staff continues to recommend adoption of the Ordinance and acceptance of the$203,000 grant. This recommendation is based on the fact that protection of this property is not a short term action, but rather, it is the intent to protect this property over the long term.It,therefore,is not the intent that the property be sold. If the property is not sold,GOCO's new language does not become an issue. March 2, 2004 -2- Item No. 15 The Natural Resources Advisory Board discussed this issue at its February 18, 2004 meeting and voted 5-1 in favor of supporting its initial recommendation that Council adopt this ordinance (minutes of meeting attached). This Ordinance,which was adopted 6-0(Mayor Pro Tern Bertschy was absent)on First Reading on February 17, 2004, authorizes the execution of a conservation easement on a portion of Running Deer Natural Area on which Great Outdoors Colorado (GOCO) has awarded the City a grant to reimburse the City for a portion of the cost of acquiring the property. ORDINANCE NO. 035, 2004 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE CONVEYANCE OF A CONSERVATION EASEMENT ON A PORTION OF RUNNING DEER NATURAL AREA, AUTHORIZING AN ACCESS EASEMENT ON A PORTION OF RUNNING DEER NATURAL AREA ADJACENT TO THE CONSERVATION EASEMENT AREA AND APPROPRIATING UNANTICIPATED REVENUE IN THE CITY'S NATURAL AREAS FUND WHEREAS, the Board of the Great Outdoors Colorado Trust Fund (the "GOCO Board") created a statewide Legacy Project Grant Program designed to further wildlife programs through the Colorado Division of Wildlife ("DOW"); outdoor recreation programs through the Colorado Division of Parks and Outdoor Recreation ("DPOR"); open space and natural areas programs through the DPOR,DOW,municipalities,counties,ornonprofit land conservation entities;and local government open space, trails and other outdoor recreation facilities; and WHEREAS,in 1996, 1998,and 2000,the City Council has considered and approved actions related to a Legacy Project Grant for the Poudre-Big Thompson Rivers Legacy Project, which is a joint project of the City of Fort Collins, City of Greeley, City of Loveland, Estes Valley Park and Recreation District, Latimer County, Town of Windsor, Weld County, the Nature Conservancy, Poudre River Trail Corridor, Inc.,DOW, and DPOR (the "Legacy Grant Project"); and WHEREAS, the Legacy Grant Project provides for reimbursement to participating grant recipients for a portion of the cost of acquiring open space or natural area properties,consistent with the work plan for the Legacy Grant Project; and WHEREAS, in 1998 the City of Fort Collins acquired approximately 94.82 acres of land located south of Prospect Road and west of Interstate 25 from Elizabeth Short and Short &Milne, a Colorado general partnership, for the purchase price of $417,000, and that property is now incorporated into what is known as Running Deer Natural Area; and WHEREAS, staff, in consultation with the staff of the GOCO Board, identified an approximately 68.933-acre portion of the aforementioned property(excluding a leased portion and a temporary mining haul roadway), more specifically described on Exhibit A (the "Property"), as land for which$203,000 of the acquisition costs may appropriately be reimbursed under the Legacy Grant Project; and WHEREAS,the City will receive reimbursement in the amount of$203,000 from the GOCO Board in 2004, for the Property described above, and said funds will be deposited in the City's Natural Areas Fund; and WHEREAS, as a requirement of the grant, the owner of the Property must convey to an approved third party, in this instance the Legacy Land Trust, a conservation easement intended to protect the Property from uses contrary to the purposes of the Legacy Grant Project,a form of which conservation easement has been negotiated by City staff with GOCO and Legacy Land Trust,is dated February 13, 2004, and is on file in the office of the City Clerk and available for public inspection (the "Conservation Easement"); and WHEREAS, the GOCO Board requires that the third party holder of the Conservation Easement have legal access, (i.e.,direct access from a public thoroughfare)to the Property covered by the Conservation Easement and the Property alone does not afford the legal access required for Legacy Land Trust enforcement of the Conservation Easement; and WHEREAS,the City owns adjacent property,more specifically described in Exhibit B (the • "Access Property"),which property is incorporated into Running Deer Natural Area, which affords legal access from Prospect Road, and WHEREAS, a proposed Access Agreement for the Legacy Land Trust on the Access Property,dated February 13,2004,is on file in the office of the City Clerk and is available for public inspection (the "Access Easement"); and WHEREAS, the objectives of the Natural Areas Policy Plan adopted by the Council as part of the City's Comprehensive Plan in Resolution 92-156, and referenced in City Plan, include establishing a system of publicly-owned natural areas to protect the integrity of critical conservation sites,protecting corridors between natural areas, preserving outstanding examples of Fort Collins' diverse natural heritage and providing a broad range of opportunities for educational, interpretive and recreational programs to meet community needs, and the Conservation Easement is consistent with the goals and objectives of these Plans; and WHEREAS, under Section 23-111 of the Code of the City of Fort Collins, the Council is authorized to sell or otherwise dispose of any and all interests in real property owned in the name of the City, provided that Council first finds by ordinance that the sale or disposition is in the best interests of the City; and WHEREAS, Article V, Section 9, of the Charter of the City of Fort Collins permits the City Council to make supplemental appropriations by ordinance at any time during the fiscal year, provided that the total amount of such supplemental appropriations,in combination with all previous appropriations for that fiscal year,does not exceed the then current estimate of actual and anticipated revenues to be received during any fiscal year; and WHEREAS, City staff has determined that the appropriation of$203,000 from the GOCO Board as described herein will not cause the total amount appropriated in the Natural Areas Fund to exceed the current estimate of actual and anticipated revenues to be received during the fiscal year; and WHEREAS,the Natural Resources Advisory Board considered the Conservation Easement and Access Easement at its February 4, 2004, meeting, and recommended that the Council approve the Ordinance. NOW,THEREFORE,BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the conveyance to Legacy Land Trust of the Conservation Easement on the Property and the Access Easement on the Access Property is in the best interests of the City of Fort Collins. Section 2. That the Mayor is hereby authorized to execute the Conservation Easement in substantially the form which is on file in the Office of the City Clerk, dated February 13, 2004, subject to such modifications in form or substance as the City Manager,in consultation with the City Attorney,may deem necessary to effectuate the purposes of this Ordinance or to protect the interests of the City. Section 3. That the Mayor is hereby authorized to execute the Access Easement in the form for the same dated February 13, 2004, and on file in the Office of the City Clerk, subject to such modifications in form or substance as the City Manager,in consultation with the City Attorney, may deem necessary to effectuate the purposes of this Ordinance or to protect the interests of the City. Section 4. That there is hereby appropriated for expenditure from unanticipated revenue in the Natural Areas Fund, the sum of TWO HUNDRED THREE THOUSAND DOLLARS ($203,000), upon receipt, from the Great Outdoors Colorado Trust Fund, for property acquisitions, as a reimbursement under the Legacy Grant Project. Introduced, considered favorably on first reading, and ordered published this 17th day of February, A.D. 2004 and to be resented for final passage on the 2nd of March 2004. P P g Mayor ATTEST: City Clerk Passed and adopted on final reading this 2nd day of March, A.D. 2004. Mayor ATTEST: City Clerk DRAFT EXCERPT MINUTES CITY OF FORT COLLINS NATURAL RESOURCES ADVISORY BOARD SPECIAL MEETING 281 N. COLLEGE February 18, 2004 For Reference: Nate Donovan NRAB Chair - 472-1599 Eric Hamrick, Council Liaison - 225-2343 John Stokes, Staff Liaison - 221-6263 Board Members Present Nate Donovan, Glen Colton, Ryan Staychock, Clint Skutchan, Randy Fischer, Linda Knowlton Board Members Absent Arvind Panjabi, Joann Thomas, Gerry Hart Staff Present Natural Resources Dept: Edith Felchle, Terry Klahn, John Stokes, Bobby Brannock, Lucinda Smith City Attorney's Office: Carrie Daggett Guests Eric Hamrick, Councilmember Several CSU students The meeting was called to order at 6:00 p.m. Runnine Deer Natural Area Easement, Edith Felchle Felchle said the NRAB approved the conservation easement and ordinance to get the $203,000 GOCO grant a couple weeks ago. We're bringing this back again because there is one wording issue required by GOCO that Carrie (Daggett)thought she would be able to get changed, but it has become evident that the GOCO Board has given direction on that wording. Either we accept this wording, or we don't get the grant. The concern would be if the City ever sells Running Deer to a buyer who is not eligible to get GOCO funding. This comes from a couple different things, GOCO's interest in public access, and a bad experience GOCO had in another county. If the City sold the portion of Running Deer the GOCO grant is on, the conservation easement would go with the property. But, if we sell to an entity that is not eligible for GOCO funds we could be required to pay them the percent of that sale equal to the percent of their grant on the property. We would also pay interest on the money from the date we got the money. The longer it would go, the more risk there is. If we don't agree to the language we don't get the grant. The natural areas staff position is that our intent isn't short term protection. Our intent is to protect the area for a long time. It's our recommendation to accept the $203,000 grant. • Stokes: It's rather convoluted, but we continue to recommend that we proceed with this project We wanted you to be aware of this requirement. The likelihood of this happening is very small. • Knowlton: This doesn't change anything. If the time came we considered selling it, and the fine would be great, we'd just not sell it. • Stokes: The conservation easement stays with the property. The issue is a private owner who would forbid the public from accessing the land. We are on the leading edge of this language. This will be an issue that will unfold over the next couple years. • Skutchan: Once the provision is in place could it be amended? • Stokes: It would be hard to amend. • Donovan: I believe they're over reaching. The City is in a position to exert some leadership by taking the possibility of refusing the grant and working with other organizations to put pressure on GOCO to come to some other resolution. This is punitive. I understand the purpose, but I don't think it's a good idea. • Knowlton: Are you recommending that we refuse the grant? • Donovan: I am. Open space programs need to exert some leadership to have better balance. • Daggett: The conservation easement stays in place. GOCO continues to get reimbursed further in the future. Theoretically it could result in GOCO being paid many times back for the grant they've made. My sense of the situation is that GOCO staff understands this is probably over reaching. They were directed by their board. They don't have the ability to deviate from that. The sense is there will have to be a change that comes from the GOCO board. There might be usefulness to give this discussion a little more time. The trick is coming up with a way to convince GOCO there's a way to get GOCO paid down the road if public access is denied. • Donovan: I don't see why GOCO would want to be more reasonable if every open space program goes along with this. • Fischer: I appreciate your interest in making a point, but they won't be influenced. I sometimes wonder if those people are interested in land conservation. They don't seem to be. Look at how they've stonewalled the bonding amendment. Meanwhile, we're losing opportunities to conserve land. The board will not be swayed by us losing$200,000. The way to approach this is to to change the makeup of the Y PP IY g P GOCO board. • Stokes: This may be a question of picking your battles. We could battle this for a very long time to effect a change, and it might not change. If this was a big project, and GOCO was putting in $5 million I'd have a serious problem, and we would pick that battle. For my part, I'm not sure this is the right battle to choose. • Staychock: If we accept this language shouldn't we assume this will be part of every document. • Stokes: These are living breathing documents. GOCO has done this before. I don't think it sets a precedent. • Staychock: If we choose not to take the $200,000 does it put the project in jeopardy? • Felchle: It means we give up the money. • Donovan: It's a reimbursement. • Stokes.-We're counting on that $200,000. We've budgeted for it. • Daggett: As an alternative to flat out recommending or denying the project, you could recommend that the 2"d reading of the ordinance be continued, and try to negotiate with-GOCO on alternative language. • Felchle: We already got a 90 day extension. That probably is the absolute last extension we can get. • Donovan: I like that idea, but would it really help? • Daggett: The way it would work is we'd continue the 2nd reading. You'd have one more meeting left. • Knowlton: I think it would be a waste of city taxpayer money for you to do that. Linda Knowlton made the following motion: Move that the Natural Resources Advisory Board reaffirm our support for this conservation easement. The motion was seconded by Randy Fischer. • Skutchan: Could we delay a couple weeks without jeopardizing the $200,000? • Felchle: We could delay a couple weeks if we thought it would get us anything. I know how hard Came has worked with GOCO staff. I have worked with them myself. I know staff to be very reasonable people. They're doing their jobs. • Knowlton: Let's keep the interests of the taxpayers in mind here. I'm sure you both have better things to do. • Staychock: I'm concerned about the taxpayers ninety years from now. • Knowlton: They have the option to not create the condition. The City never has to sell it. • Fischer: To me it's a non-issue. I can't imagine wanting to sell the property. It's a benign sort of thing. If we have issues with GOCO we should take them up with the powers that be, and not forfeit$200,000 for something that wouldn't gain us anything anyway. That's my reaction. • Skutchan: Can we attach a statement of our concern? • Fischer: Then you have the board voting to approve the easement, and then Council reads that we're uncomfortable with the easement language. • Staychock: Is there anything in the charter regarding selling property? • Stokes: If we want to sell we have to get the board's recommendation and then approval from Council. We're talking about a problem that might occur in 100 years. We have zero plans to sell, this whole scenario is hypothetical. The motion passed with five votes in favor, and one vote (Nate Donovan) opposed. ITEM NUMBER: 24 AGENDA ITEM SUMMARY DATE: February 17, 2004 FORT COLLINS CITY COUNCIL STAFF: Edith Felchle SUBJECT First Reading of Ordinance No.035,2004,Authorizing the Conveyance of Conservation Easement on a Portion of Running Deer Natural Area, Authorizing an Access Easement on a Portion of Running Deer Natural Area 40jtowt tV°Ahb.. Consmation Easement Area and Appropriating Revenues into the City's Natr} 1 Areas and. In RECOMMENDATION Staff and the Natural Resources Advisory Board recommend adoption of the Ordinance on First Reading. EXECUTIVE SUMMARY ,:-: , ..OV ;i i;=e Ni viR This Ordinance authorizes theVecutiortb,f a cqi*"s: erVation easement on a portion of Running Deer Natural Area on which Great OilRiaor C6%rad$(09"'CO)has awarded the City a grant to reimburse the City for a portion of the cost of acquiring the property. Running Deer Natural Area is made up of several property acquisitions. The portion for which the grant was awarded was purchased from Elizabeth Short and Short & Milne in 1998. GOCO requires that a third party (in this instance, Legacy Land Trust)hold a conservation easement on any property acquired with GOCO funds. The conservation easement restricts use of the property and requires that it be generally available for public access. The conservation easement also requires that GOCO receive a share of any proceeds if the City conveys title to the property in most instances. GOCO also requires that the holder of the conservation easement have lega]_aceess S.g,the site, In this case, the property covered by the conservation easement does nq ]ffordrJe ¢1 acc�s( 'e fdd&, not abut a public thoroughfare).The a; ¢e City, however, does have leg .access t the pr e EfiTrough portion of Running Deer Natural ee:. Area not covered by the cons Ni orµe grant).']hat portion of the site that affords the City legal access was purchased from Raju Jairam in 2000(this property is informally known as the MBI property) and is adjacent to Prospect Road. Therefore, this Ordinance approves an access easement to Legacy Land Trust across the portion of the property affording legal access, thereby giving the land trust legal access for purposes of monitoring and enforcing the conservation easement. This Ordinance also appropriates into the Natural Areas Fund the$203,000 of grant monies the City will receive from GOCO upon signing and recording of the conservation easement and access easement. February 17, 2004 -2- Item No. 24 This Ordinance completes the process required for receiving all funds awarded to the City of Fort Collins for acquisition of natural areas within the multi-year, multi-partner Poudre/Big Thompson Rivers GOCO Legacy Project. With the receipt of the$203,000 for the Running Deer Natural Area property, the City of Fort Collins will have received $975,000 from the Poudre/Big Thompson Rivers GOCO Legacy Project for acquisition of natural area properties. The City is receiving an additional $540,300 from the Poudre/Big Thompson Rivers GOCO Legacy Project for trails, park development, and environmental education. The Natural Resources Advisory Board considered this item at its meeting on February 4, 2004 and recommended adoption of the lgfdin ce; il. Ell " ,. ilm 9": F