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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 05/02/2000 - FIRST READING OF ORDINANCE NO. 50, 2000, AUTHORIZI AGENDA ITEM SUMMARY ITEM NUMBER: 14 DATE: May 2, 2000 FORT COLLINS CITY COUNCIL STAFF: Mark Sears SUBJECT: First Reading of Ordinance No. 50, 2000, Authorizing the Purchase of 6 Acres at 3301 East Prospect Road for Natural Area Purposes and Authorizing the Lease of the Property to the Seller, MBI Corporation, for a Period of up to Four Years. RECOMMENDATION: Staff and the Natural Resources Advisory Board recommend adoption the Ordinance on First Reading. FINANCIAL IMPACT: The City will purchase the MBI property for $340,000 from available funds that are already appropriated in the Natural Areas Program for the acquisition of natural areas. The City will then lease the property to MBI for $18,000 per year for two years with an option for an extension . of up to two additional years. This is a triple net lease meaning that MBI will be responsible for all expenses including utilities,repairs, and maintenance. EXECUTIVE SUMMARY: Natural Resources recommends the purchase of 6 acres at 3301 East Prospect Road from MBI Corporation. Natural Resources and CSU have acquired the "Flatiron" gravel mine property to the south and west of this parcel for natural area purposes. The land was acquired over time at bargain prices and by donation. This 6-acre parcel with Flatiron's old office building had previously not been acquired due to the higher land value. This parcel is now one of the last pieces in the puzzle in the effort to preserve the entire river bottom on the east side of the Poudre River, from Timberline Road southeast to I-25. The purchase price of$340,000 represents the fair market value of the property as determined by Dennis Marion, M.A.I. Although this purchase price is a comparatively high price to pay for 6 acres of natural area, the visual benefit of removing the office building and restoring the site will be spread across the hundreds of acres of natural area surrounding this property. The property is in an ideal location for redevelopment. It is near I-25 on Prospect Road, which will be widened in a few years, and it is surrounded by natural area. The cost to acquire this parcel is expected to increase over time, so delay would likely result in increased expense. If this site were redeveloped, the negative visual impact to the surrounding natural area would be there for a very long time. (See attached site map.) DATE: May 2, 2000 2 ITEM NUMBER: 14 The site will be leased back to MBI Corporation for 2 years at $18,000 per year with an option for a 2-year extension. This is a triple net lease meaning that MBI will be responsible for all expenses including utilities, repairs, and maintenance. Since Prospect Road will be widened in 2003, Engineering will reimburse Natural Resources for the right-of-way and slope easement needed, a construction easement on the entire site to use it as a staging area, for renting the building as a construction office, and for restoration of the site. The total amount of this reimbursement is estimated to be $53,000, and will be funded by the Building Community Choices Capital Project Fund for Prospect Road. Once the widening of Prospect Road is completed,the building will be removed and the area restored to native vegetation. ORDINANCE NO. 50, 2000 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE PURCHASE OF 6 ACRES AT 3301 EAST PROSPECT ROAD FOR NATURAL AREA PURPOSES AND AUTHORIZING THE LEASE OF THE PROPERTY TO THE SELLER, MBI CORPORATION FOR A PERIOD OF UP TO FOUR YEARS WHEREAS,City staff has negotiated an agreement with MBI Corporation,the current owner of that certain property located at 3301 East Prospect Road, consisting of six acres with existing office building improvements, more particularly described on Exhibit "A", attached hereto and incorporated herein by this reference (the"Property"); and WHEREAS,the terms of the agreement provide that the City will pay to MBI Corporation the appraised fair market value of the Property, $340,000, in exchange for the conveyance of the Property in fee to the City; and WHEREAS,the Property is surrounded by hundreds of acres of City and CSU natural area, and the City's ownership of the Property will in the future allow the City and CSU to manage the Property consistent with the uses and needs of the surrounding natural areas; and WHEREAS,City staff has further negotiated with MBI Corporation the lease of the Property to MBI after the conveyance to the City at a lease rate of$18,000 per year, for an initial period of two years, with a possible extension for up to two additional years; and WHEREAS, the lease rate of$18,000 per year is consistent with the fair market lease rate for comparable properties; and WHEREAS,the City currently has no plans for the use of the Property during the potential four year term of the proposed lease, except for possible acquisition of new right of way for the widening of Prospect Road, and use of the building on the Property in connection with that project; and WHEREAS, under Section 23-114 of the Code of the City of Fort Collins, the Council is authorized to lease any and all interests in real property owned in the name of the City,by resolution, for a period of up to two years,and by ordinance for a longer period,provided that Council first finds that the lease is in the best interests of the City. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the acquisition of the Property and lease thereof to MBI Corporation, as described herein, is in the best interests of the City of Fort Collins. Section 2. That, upon the City's acquisition of the Property, the City Manager is hereby authorized to execute a lease of the Property to MBI Corporation consistent with the terms hereof, together with such additional terms and conditions as the City Manager,in consultation with the City Attorney,may deem necessary to effectuate the purposes set forth herein or otherwise to protect the interests of the City. Introduced,considered favorably on first reading,and ordered published this 2nd day of May, A.D. 2000, and to be presented for final passage on the 16th day of May, A.D. 2000. Mayor ATTEST: City Clerk Passed and adopted on final reading this 16th day of May,A.D. 2000. Mayor ATTEST: City Clerk EXHIBIT "A" . LEGAL DESCRIPTION OF THE PROPERTY PARCEL 1: A tract of land located in the NW1/4 of Section 21, Township North, Range 68 West of the Sixth Principal Meridian, Larimer County, Colorado, more particularly described as follows: Beginning at the NW corner West of said of section theNW1/4 of thence said S 00 17 23 W, along parallel Section 21, 30.01 feet to a point on a line which is p to and 30.00 feet distant Southerly at right angles from the North line the NW1/ of said parallel line, feet to ection 21; nce the S 88°14'33" E,, along said p TRUE POINT ara11e1OF Nline, 352.71 feetING; thence S $°thence S 0104512711W, along said p along a line at right angles to the North line a the which is said Section 21, 247 .00 .feet to a point parallel to and 277 .00 feet distant Southerly at right angles from the North line f the NW1/4 of said last mentioned ction 21;parallel tlinee N 14 W, 4 the 352.7.71 fee along feet to a point which bears S 0104512711 W from the true point of beginning; thence N O1045, 27" E, along a line at right angles to the North line of the NW1/4 of said Section 21, 247 .00 feet to the TRUE POINT OF BEGINNING. • PARCEL 2 : A tract of land located in the NW1/4 of Section 21, Township North, Range 68 West of the Sixth Principal Meridian, Lorimer County, Colorado, more particularly described as follows: ner f Beginning at the NW cOr west line lofS the lo thence NWI/4 of said S 00 17, 23 W, along the line which is parallel Section 21, 30.01 feet to a point on a l to and 30 .00 feet distant Southerly at right angles from the North line , the saidl14 of parallelsaid Section 21;line, 1079 45 feet tonce the S 88 14 33 F along P TRUE POINT OF BEGINNING; thence S 88014133" E, continuing along said parallel line, 586 .44 feet to the NW corner of the tract described in Book 1363 at Page 527 of the said Larimer County records; thence S 03°p " E, along the West line of on a line which is parallel said tract, 0 feet feet to a point to and 277 .00 feet distant Southerly at right angles from the North line of the NW1/4 of said Sectioarallel tlinee N 88014,33" W, along the last mentioned p 610 .95 feet to a point which bears N O1 S 01*°5, 27'alongfrom the 1 nerat point of beginning; thence right angles to the North line of the NW1/4, 247 .00 feet to the TRUE POINT OF BEGINNING. ill ZEN: ff11111.!'•Y • - —a 'nm�'� 1 �III1� . �.IuugaaaalO . 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