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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 05/02/2000 - FIRST READING OF ORDINANCE NO. 54, 2000, AUTHORIZI AGENDA ITEM SUMMARY ITEM NUMBER: 25DATE: May 2, 2000 FORT COLLINS CITY COUNCIL Ron Mills STAFF: Link Mueller SUBJECT: First Reading of Ordinance No. 54, 2000, Authorizing an Option to Lease, and the Subsequent Lease, of City-owned Property on East Laurel Street to Sportsman's Storage,LLC,for Sublease to Nextel for Installation of a Monopole, and Authorizing Associated Easements. RECOMMENDATION: Staff recommends adoption of Ordinance on First Reading. FINANCIAL IMPACT: The option to lease will generate$500 if the lease is not finalized. The lease will generate an annual rent of$3,402. The lease is subject to five automatic renewals of five years each,each term adjusted by the Consumer Price Index for all urban customers for the previous five years. EXECUTIVE SUMMARY: Nextel Communications,Inc.,through Sportsman's Storage,LLC,contacted the City during the time of the planning for the Locust Street Outfall Project to discuss the possible lease of 225 square feet of land for an antenna to enhance its cellular phone service. Sportsman's Storage was originally informed that zoning on its property would accommodate all of Nextel's facilities, including a communications standard and equipment shelter. However,the zoning line dividing the Limited Commercial District(C-L)zone from the Neighborhood Conservation,Buffer District (N-C-B)zone fell on their northern property line. The N-C-B district on their property permits the equipment shelter, but does not permit the 60-foot tall monopole. This resulted in the Sportsman's Storage owners requesting a lease for 225 square feet of C-L land from the City for the location of Nextel's monopole. Nextel's equipment storage will be located on 600 square feet of the Sportsman's Storage property. The 225 square of City property to be leased, and a related utility and access easement are more particularly described on Exhibits "A" and`B"to the Ordinance,respectively. Sportsman's has requested an initial option to lease for$500,for a term of up to one year,to allow for site investigation, regulatory approvals, and other necessary actions prior to installation of the monopole. Sportsman's Storage and Nextel have coordinated with City staff so that the location of the tower will not conflict with the City's use. The staff is proposing to use the basic lease format utilized for a similar communications facility at the City Park North Ballfield to Sprint Spectrum L.P. Maps of the proposed location of the monopole and related equipment are attached. DATE: May 2, 2000 2 ITEM NUMBER: 25 The legal descriptions for the lease area and the access and utility easement were not available at the time of preparation of the agenda materials, and will be provided with the ordinance on second -reading. However, a drawing depicting the lease area and easement area is attached. ORDINANCE NO. 54, 2000 OF THE COUNCIL OF THE CITY OF FORT COLLINS Is AUTHORIZING AN OPTION TO LEASE, AND A SUBSEQUENT LEASE, OF CITY-OWNED PROPERTY ON EAST LAUREL STREET TO SPORTSMAN'S STORAGE, LLC, FOR SUBLEASE TO NEXTEL FOR INSTALLATION OF A MONOPOLE, AND AUTHORIZING ASSOCIATED EASEMENTS WHEREAS,the City is the owner of that certain parcel of real property at the east end of East Laurel Street,which was purchased for stormwater utility purposes, and which includes a 225 square foot parcel more particularly described on the attached Exhibit"A" (the "Lease Property"), as well as the property described on the attached Exhibit`B"(the"Access and Utility Easement"), both of which exhibits are incorporated herein by this reference; and WHEREAS, Sportsman's Storage,LLC("Sportsman's"),an owner of property adjacent to the City's property, has approached City staff, seeking to lease the Lease Property in order to sublease it to Nextel Communications, Inc. ("Nextel") together with 600 square feet of adjacent Sportsman's property, for use as a personal communications service system facility; and WHEREAS, Sportsman's has requested that the City grant an option to lease the Lease Property,for an initial term of six months,with one 6-month renewal,in exchange for a payment of . $500, during which option term Sportsman's would undertake the necessary site survey and investigation, complete sublease arrangements,and obtain the necessary regulatory approvals; and WHEREAS,staff has negotiated aproposed Option Agreement pursuant to the Sportsman's request,and a proposed Lease Agreement,for an initial term of five years,with five 5-year renewals at the option of Sportsman's, subject to compliance with all lease conditions, pursuant to which Sportsman's has agreed to pay$283.50 per month,with said rate to be increased every five years by the rate of inflation; and WHEREAS, in order for Sportsman's to arrange with Nextel for the installation, operation and maintenance of the necessary equipment in connection with the Lease Agreement,Sportsman's has also requested that the City grant Sportsman's the Access and Utility Easement for Sportsman's nonexclusive use in connection with the Lease Agreement during the term of the Lease Agreement; and WHEREAS,City staff has determined that the proposed installation and use by Sportsman's of the Lease Property, along with the Access and Utility Easement, is consistent with and will not conflict or interfere with the City's use of the burdened property for the intended stormwater purposes; and WHEREAS, the City will gain financial benefits in exchange for permitting the proposed use, and staff believes that the impacts to the City of the same are minimal; and is WHEREAS, Section 23-114 of the City Code authorizes the Council to lease any and all interests in real property owned in the name of the City, provided that Council first finds that the lease is in the best interests of the City; and WHEREAS,Section 23-111 of the City Code authorizes the City Council to sell,convey or otherwise dispose of any interest in real property owned by the City for use by a City utility,provided the Council first finds by ordinance that any sale or disposition of real property owned by the City is in the best interests of the City of Fort Collins and will not materially impair the viability of the utility as a whole. NOW,THEREFORE,BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby determines that the option to lease, and the subsequent lease,of the Lease Property,described on Exhibit"A",attached hereto and incorporated herein by this reference,to Sportsman's Storage,LLC,as set forth in the Option Agreement dated May 2, 2000 (the"Option Agreement"), and the Lease Agreement dated May 2, 2000 (the"Lease Agreement"),both of which are on file in the Office of the City Clerk,together with the associated grant of an Access and Utility Easement over that certain portion of adjacent City property, described on Exhibit"B"attached hereto and incorporated herein by this reference, are in the best interests of the City, and will not materially impair the viability of the City utility as a whole. Section 2. That the City Manager is hereby authorized to enter into the Option Agreement and the Lease Agreement with Sportsman's for the Lease Property,consistent with the terms hereof,along with such other terms and conditions as the City Manager,in consultation with the City Attorney, deems appropriate to protect the interests of the City. Section 3. That the Mayor is hereby authorized to execute an Easement Agreement conveying to Sportsman's a non-exclusive access and utility easement as described on Exhibit`B", for the duration of the Lease Agreement, which Easement Agreement shall be consistent with the terms hereof and with the Lease Agreement, and shall further contain such other provisions as the City Manager, in consultation with the City Attorney,deems appropriate 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. 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