HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 05/06/2008 - FIRST READING OF ORDINANCE NO. 043, 2008, APPROPRI ITEM NUMBER: 10
AGENDA ITEM SUMMARY DATE: May 6, 2006
FORT COLLINS CITY COUNCIL STAFF: Ken Mannon
Helen Matson
SUBJECT
First Reading of Ordinance No. 043, 2008,Appropriating Prior Year Reserves in the General Fund
to Purchase Property Located at 225 Maple Street.
RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
FINANCIAL IMPACT
This Ordinance authorizes the appropriation of$1,465,000 in prior year reserves in the General Fund
to purchase property located at 225 Maple Street. These reserves are a portion of the proceeds from
the properties exchange with Colorado State University, specifically for the 25 acre site at the
intersection of Prospect Road and I-25. These funds will be used for the purchase of the site,
environmental testing, appraisal services, razing the site, closing costs, and staff time for
negotiation.
EXECUTIVE SUMMARY
The City has acquired all of Block 32, with the exception of the property at 225 Maple Street. The
Civic Center Master Plan includes two City office buildings on this block. The new office building
has not been planned, but this property will be used either as the building site, a parking garage, or
a park adjacent to the new building. In order to proceed with this transaction, staff is requesting
Council to approve the appropriation of funds necessary to acquire the property and pay associated
expenses for the purchase.
BACKGROUND
Off and on since the 1980s, City staff has met with the owners of Haiston Oil Company to discuss
the City's purchase of its site. Negotiations have always failed because no agreement could be
reached on a purchase price for the site. Late last year,Haiston again came to the City with an offer
to sell its property to the City. The City and Haiston both acquired appraisals. Recently Haiston Oil
Company agreed to sell its site to the City, environmentally clean, for $1,400,000, or $43/square
foot. This site is the last parcel on Block 32 to be purchased by the City. The agreed upon price is
reflective of sold assemblage purchases in the area.
May 6, 2008 -2- Item No. 10
The City had a Phase I Environmental Site Assessment prepared for the property. Based on this
Phase I report,the City will be ordering a Phase II Environmental Report. From the Phase II report,
both parties will know what items need to be corrected by Haiston Oil Company prior to the City
taking title to the property. The Agreement of Purchase and Sale of Real Property is being
developed at this time.
The requested funds will be used for the $1,400,000 purchase price, environmental testing, site
demolition, appraisal services, closing costs, and staff time to complete negotiation services. The
total appropriation request is $1,465,000.
ATTACHMENTS
1. Location Map.
ATTACHMI NT 1
225 Maple Street
Location Map
MAP ST
c
a>
U
F F Y
Co Co N
Co z C
O @
o Co
S g C
z z ❑ O
C
O —_ C
LO
O
Old
Police u, o
Services Bldg
U
LAPOfrE AVE
�r
0
'�R y
r
® 225 Maple Street Location N
ORDINANCE NO. 043, 2008
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROPRIATING PRIOR YEAR RESERVES IN THE GENERAL FUND
TO PURCHASE PROPERTY LOCATED AT 225 MAPLE STREET
WHEREAS,the City owns all of Block 32 in the city,with the exception of the property at
225 Maple Street; and
WHEREAS,the City's Real Estate Services staff has reached an agreement with Haiston Oil
Company to purchase the property at 225 Maple Street, once all environmental hazards have been
resolved to the City's satisfaction, for $1,400,000, subject to the Council's appropriation of the
necessary funds; and
WHEREAS,the City had a Phase I Environmental Site Assessment prepared for this site and,
based on this report, the City will order a Phase II Environmental Site Assessment to determine
whether the issues identified in the Phase I Environmental Site Assessment merit remediation or are
satisfactory to the City prior to the City taking title to the property; and
WHEREAS, an appropriation of $1,465,000 is requested and will be used to pay the
$1,400,000 purchase price and an additional $65,000 for environmental testing, site demolition,
appraisal services, closing costs, and staff time to complete negotiation services; and
WHEREAS,the City received funds in 2007 from aproperty transaction with Colorado State
University,specifically the 25 acre site at the intersection of Prospect Road and I-25,and these funds
were to be used for land purchases; and
WHEREAS,the proceeds received in 2007 are now available in the General Fund prior year
reserves; and
WHEREAS,Article V, Section 9,of the Charter of the City of Fort Collins permits the City
Council to appropriate by ordinance at any time during the fiscal year such funds for expenditure as
may be available from reserves accumulated in prior years,notwithstanding that such reserves were
not previously appropriated.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS that there is hereby appropriated for expenditure from General Fund prior year reserves
the sum of ONE MILLION FOUR HUNDRED SIXTY FIVE THOUSAND DOLLARS($1,465,000)
to be used for the purchase of property located at 225 Maple Street.
Introduced,considered favorably on first reading,and ordered published this 6th day of May,
A.D. 2008, and to be presented for final passage on the 20th day of May, A.D. 2008.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading on the 20th day of May, A.D. 2008.
Mayor
ATTEST:
City Clerk