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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 Y� r VIM f E t,?�f-- d�' is r� .' r � �'� •'�,Pf'fs; aF}r -e.6!�"�'' p.�r•`�'.�n.�r� _ f `�Ir^'.r•"h � Y -ram „r, .. .. �~ Ac- r`r, '� -'� 3 �v�¢arai,r '�'�'^, �-p �w1�7�J•' -' !:; Fr+ ��r` �`i�'ev-'t��lr' � 1•�SYaF- y}.��a`�b .2tie(�„w'�..S et ��J�4 3 y. 3 LQ w-¢if.L. .�p�•fr•'iar. ^"'PT !F' �.' i`�kC � .t� r 4. I. 7 f'+.,T„-"y„ '4+ •,, -way,• '°X . �.�y. �. ,y� `,Q�i.,ry�.a :. .r uCRrr:.•,set y A}rr% />• AwVol �' t w r Et 7 �� _��`jr' `Y ' 3 e r9r '.L9[' 'Sx� Y�" Y^ '••�'d y' c r .Ac•' Irk `�f7"^A .4► • • a J�' -I Vt C i$ 4. ri^•Iw �..l ^`�YS 6 a aF rga c•!;y��i'g> wnc",• }a+x'•, C � `�%" ,. 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