HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 02/01/2005 - SECOND READING OF ORDINANCE NO. 006, 2005, AUTHORI ITEM NUMBER: 8
AGENDA ITEM SUMMARY DATE: February 1, 2005
FORT COLLINS CITY COUNCIL STAFF: Mark Sears
Wally Cameron
SUBJECT
Second Reading of Ordinance No.006, 2005,Authorizing the Lease of Property to be Acquired for
Wellington Community Separator to Turf Master Ltd., for a Sod Farm and Related Uses.
RECOMMENDATION
Staff recommends adoption of the Ordinance on Second Reading.
EXECUTIVE SUMMARY
Pursuant to the City of Fort Collins Land Conservation and Stewardship Master Plan, staff has
negotiated a Purchase&Sale Agreement with Bartran Enterprises,LLC for approximately 450 acres
located in the Wellington Separator Area. The property is currently operated as a sod farm by Turf
Master, LTD., and a condition of the sale of the property is an assignable Lease Agreement to the
existing operator. Ordinance No.006,2005,was unanimously adopted on First Reading on January
18, 2005.
ORDINANCE NO. 006, 2005
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE LEASE OF PROPERTY TO BE ACQUIRED
FOR WELLINGTON COMMUNITY SEPARATOR
TO TURF MASTER LTD., FOR A SOD FARM AND RELATED USES
WHEREAS, the City of Fort Collins has negotiated an agreement to purchase for a part of
the Wellington community separator that certain property described on Exhibit"A"attached hereto
and incorporated herein by this reference(the"Property"), which has previously been occupied and
used by Turf Master, Ltd., ("Turf Master"), for a sod farm and related uses; and
WHEREAS, the Seller has conditioned the conveyance of the Property on the lease of the
Property to Turf Master, for continued use of the Property for a sod farm and related residential and
other proposes, for up to three four-year terms; and
WHEREAS, City staff has negotiated with Turf Master a proposed lease agreement a copy
of which, dated January 14, 2005, is on file in the office of the City Clerk and available for publid
inspection (the"Lease Agreement"),which provides for the lease of the Property to Turf Master for
the uses specified therein, for an initial term of four years with two possible four-year extensions,
for An initial annual rental amount of $85,000.00, to be paid quarterly, with indexed rental rate
escalators for any renewal terms; and
WHEREAS, the proposed lease of the Property to Turf Master will not interfere with or
impair the City's intended uses of the Property as part of the Wellington Community Separator; and
WHEREAS, City staff has also determined that the lease rate of $85,000.00 per year is
consistent with the approximate fair market lease rate for comparable property; 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,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 lease by the City of the Property to Turf Master, under the terms and
conditions set forth herein and in the Lease Agreement, is in the best interests of the City of Fort
Collins.
Section 2. That the City Manager is hereby authorized to enter into the Lease Agreement,
together with such other related provisions determined necessary to protect the interests of the City
by the City Manager, in consultation with the City Attorney, and is further authorized to extend the
term of the same for the full potential term of twelve years, as provided therein.
Introduced, considered favorably on first reading, and ordered published this 18th day of
January, A.D. 2005, and to be presented for final passage on the 1st day of February, A.D. 2005.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading this Ist day of February, A.D. 2005.
Mayor
ATTEST:
City Clerk
ITEM NUMBER: 12
AGENDA ITEM SUMMARY DATE: January18, 2005
FORT COLLINS CITY COUNCIL STAFF: Mark Sears
Wally Cameron
n ,
SUBJECT
First Reading of Ordinance No. 006, 2005, Authorizing the Lease of Property to be Acquired for
Wellington Community Separator to Turf Master Ltd., for a Sod Farm and Related Uses.
RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading. The Natural Resources Advisory
Board reviewed this acquisition and lease back request at its regular meeting of January 5, 2005.
The Board unanimously supported the acquisition and recommended Council adopt the
Ordinance.
,,.
EXECUTIVE SUMMARY
Pursuant to the City of Fort Collins,Land-Cotser tion and-Stewardship Master Plan, staff has
negotiated a Purchase & Sale Agreement with Bartran Enterprises, LLC for approximately 450
acres located in the Wellington Separator Area. The property is currently operated as a sod farm
by Turf Master, LTD., and a condition of the sale of the property is an assignable Lease
Agreement to the existing operator.
BACKGROUND
The property is located outside the northeast border of the Growth Management Area of the City
of Fort Collins, between Larimer County Road #52 on the south, Latimer County Road #54
(Douglas Road) on the north, and Larimer County Road# 9 on the east side of the property. The
purchase price of the property is $5,400,000 which includes several sets of agricultural and
residential improvements, irriga(ion. ells center_ ' t sp nklersystems, and water rights. The
term of the lease back to Turf 1VIaster isffor an lit• 1 4jea erui, with options to extend for two
additional 4-year terms. The phial rate,of lease III,_ e $8 00 per year, paid quarterly, with
indexed rental rate escalators fbr;the subsecquent 4 year perio if exercised by the lessee. In the
event the property is leased for the full 12-year term allowed by the lease, the total lease amount
will be a minimum of$1,020,000, plus escalators. The lease is assignable to another sod farm or
other agricultural operator.
Natural Areas staff is exploring opportunities to sell all or portions of the property to a third
party, subject to a conservation easement that will limit future development of the property, and
subject to the existing lease. It is estimated that a "conservation buyer" may pay up to 50% of
January 18, 2005 -2- Item No. 12
the fee value of the property with a conservation easement in place. In the event such a buyer is
not found, the property will provide an income stream to offset the acquisition cost.
Adoption of the Ordinance (cola
ait test p f a important urban shaping and
community separator and onds roper, to th y to recover a portion of the
purchase price through the leymis andYexp ore the pptential for re-selling the property
with a conservation easemente'w ch.will-meet the land.conservation goals of the City of
Fort Collins.
ATTACHMENTS
1. Bartran Property Location Map