HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 04/20/2004 - FIRST READING OF ORDINANCE NO. 076, 2004, AUTHORIZ ITEM NUMBER: 29
AGENDA ITEM SUMMARY DATE: April 20, 2004
FORT COLLINS CITY COUNCIL STAFF: John Stokes
SUBJECT
First Reading of Ordinance No. 076, 2004, Authorizing the Conveyance of Certain Interests in
Soapstone Grazing Association Real Property to Be Acquired by the City.
RECOMMENDATION
Staff recommends the proposed transactions. The acquisition and conservation of the Colorado
portion of the ranch supports the City's ten-year Land Conservation Framework. The transaction
ensures that the City owns no land in Wyoming,although the City would be granted a conservation
easement that limits development on the Wyoming portion of the ranch which would benefit the
Colorado property. The transaction also ensures that the corporation that owns the ranch is dissolved
and that the taxes owed by the corporation upon dissolution are paid.
FINANCIAL IMPACT
The City's total outlay for ownership of the Colorado portion of the ranch as well as a conservation
easement on the Wyoming portion is$7.7 million. Future management of the Colorado portion of
the ranch could include: (1) continued ownership of the ranch by the City with a lease for grazing
and recreation opportunities for the public; (2) sale of the ranch and retention of a conservation
easement and recreation rights; and (3) some combination of(1) and(2).
EXECUTIVE SUMMARY
The City has a contract to close on the 23,000 acre Soapstone Ranch. In order to achieve the closing,
and to obtain the 12,000 acres in Colorado that it wishes to retain,the City must take several actions:
1. Acquire the corporation that owns the ranch.
2. Agree to sell the 11,000 acre Wyoming portion of the ranch,encumbered by a conservation
easement. The conservation easement would allow up to twelve divisions of the property
and twelve primary residences with one associated secondary residence each. Permitted
activities include grazing and hunting. No intensive commercial uses are allowed. No
structures would be allowed on the Wyoming property that would be visible from the City's
Colorado property.
3. Execute a grazing lease through 2005 with the current owners of the Soapstone Ranch. The
lease is a condition of the sale of the ranch to the City.
April 20, 2004 -2- Item No. 29
4. Grant three right-of-way easements.
a. Two easements through the City's Meadow Springs Ranch and the Colorado
Soapstone Ranch from the south. The easements would be used to access the
Wyoming portion of Soapstone. See attached map for a description.
b. An easement to the buyer of the Wyoming Soapstone property for the benefit of a
ranching family that owns land on the south side of the Soapstone Ranch to move
cattle through the westerly three Sections of Colorado Soapstone into Wyoming and
back (i.e. a cattle drive). The easement may also allow access through Colorado
strictly for providing agricultural services associated with those cattle (i.e. to drive
from their Colorado property to Wyoming to doctor cattle, fix fence, etc). The
easement would terminate upon the sale of the Wyoming Soapstone land or the
ranching family's land in Colorado.
ORDINANCE NO. 076, 2004
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE CONVEYANCE OF CERTAIN
INTERESTS IN SOAPSTONE GRAZING ASSOCIATION
REAL PROPERTY TO BE ACQUIRED BY THE CITY
WHEREAS, the City of Fort Collins has been negotiating to acquire certain real property
in the northern part of Larimer County commonly known as the Soapstone Ranch, in light of the
substantial natural resource and conservation values of said property, the value of the same for
open space, archeological and historical purposes, and the possible recreational opportunities
presented by the same; and
WHEREAS, in order to acquire the portion of the Soapstone Ranch located in Larimer
County, which constitutes approximately 12,000 acres of land largely in its natural state and
otherwise used for grazing of cattle ("Soapstone CO") on a willing seller basis, it will be
necessary for the City to acquire and dissolve Soapstone Grazing Association and all of its
assets, including approximately 11,000 acres of grazing land in Wyoming ("Soapstone WY");
and
WHEREAS, the City has negotiated an agreement with Harrison Resource Corporation
pursuant to which the City will, after acquiring the Soapstone WY property, convey that property
to Harrison Resource Corporation or its assignees (the "WY Buyers") in exchange for a
negotiated payment to the City of$2.8 million and subject to a conservation easement; and
WHEREAS, said conservation easement on the Soapstone WY property will limit the use
and development of said property to noncommercial agricultural uses and up to 12 ownership
parcels, each of which may contain a primary and secondary single family residence and
associated ranch buildings and improvements, and will prohibit the construction of buildings that
are visible from the Soapstone CO property(the "Conservation Easement"); and
WHEREAS, in order to provide reasonable access to the Soapstone WY property, the
City will also be required to convey to the WY Buyers easements across both Soapstone CO and
Meadow Springs Ranch an easement for access and subgrade utilities necessary for the
development of Soapstone WY consistent with the Conservation Easement; and
WHEREAS, the Conservation Easement will limit development of Soapstone WY so as
to prevent excessive pressure on the access easements across City property described above, and
will benefit the Soapstone CO property by preserving the open and agricultural character of the
abutting land to the north, and as a result will significantly advance the City's objectives of
protecting the Soapstone CO property; and
WHEREAS, as part of its agreement to acquire Soapstone Grazing Association, the City
is obligated to allow the use of Soapstone Ranch by the current members of Soapstone Grazing
Association, who currently graze cattle on the property, through December 31, 2005, at a charge
of$14.00 per cow/calf unit grazed for the calendar year 2005; and
WHEREAS, in order to meet the foregoing obligation, the City will need to execute a
grazing lease on the Soapstone Ranch after dissolution of the Soapstone Grazing Association and
before conveyance of the Soapstone WY property; and
WHEREAS, the WY Buyers have also required as a condition of purchase of Soapstone
WY that the City grant an agricultural access easement across the westerly three sections of
Soapstone CO in order to drive cattle from property currently owned by the Gallegos family
immediately to the south and west of said three sections (the "Gallegos Property") northward in
the spring to Soapstone WY and southward in the fall from Soapstone WY to the Gallegos
Property, and may also allow limited traffic on an existing roadway in those sections for
provision of services associated with said cattle on Soapstone WY; and
WHEREAS, the acquisition of Soapstone CO and protection of Soapstone CO through
the reservation of the Conservation Easement is consistent with the Ten-Year Land Conservation
Plan and Natural Areas Policy adopted by the City Council with its adoption of Resolution 2003-
051 on April 1, 2003, and as subsequently updated with the adoption of Resolution 2003-139;
and
WHEREAS, Section 23-111 of the City Code provides that the City Council is
authorized to sell, convey or otherwise dispose of an interest in real property owned by the City,
provided the Council first finds by ordinance that any sale or disposition of that real property
interest will be for the benefit of the City's citizens, and will be 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 City Council hereby finds that the conveyance of Soapstone WY, the
conveyance of access and subgrade utility easements on Soapstone CO and Meadow Springs
Ranch, the conveyance of the agricultural access easement, and the lease of the Soapstone Ranch
for grazing purposes to current Soapstone Grazing Association members, all as described
hereinabove, are for the benefit of the citizens of Fort Collins and in the best interests of the City
of Fort Collins.
Section 2. That the Mayor is hereby authorized to execute such deeds, easements,
documents of conveyance, and other documents are may be necessary to carry out the terms of
this Ordinance, in a form and including such terms and conditions as the City Manager, in
consultation with the City Attorney, determine to be necessary or appropriate to protect the
interests of the City and consistent with the terms of this Ordinance.
Introduced, considered favorably on first reading, and ordered published this 20th day of
April, A.D. 2004, and to be presented for final passage on the 4th day of May, A.D. 2004.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading this 4th day of May, A.D. 2004.
Mayor
ATTEST:
City Clerk
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