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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 10/19/2004 - FIRST READING OF ORDINANCE NO. 168, 2004, AUTHORIZ ITEM NUMBER: 15 AGENDA ITEM SUMMARY DATE: October 19, 2004 FORT COLLINS CITY COUNCIL STAFF: Helen Matson Karen Manci SUBJECT First Reading of Ordinance No. 168, 2004, Authorizing the Lease of the Natural Area Located South of Fort Collins Jointly Owned by the City of Fort Collins and the City of Loveland for Dryland Wheat Farming for up to Five Years. RECOMMENDATION Staff recommends the adoption of the Ordinance on First Reading. FINANCIAL IMPACT The rent collected from this lease (approximately $2,750 per year) will be paid to the City of Loveland for use in managing the property, since Loveland is the managing entity for this property. EXECUTIVE SUMMARY This natural area was purchased in March of 2000. The City of Loveland, Larimer County, GOCO Funds and the City of Fort Collins participated in the purchase. An hntergovernmental Agreement about this property was entered into on March 22, 2000. As per this Intergovernmental Agreement, the purchasing participants designated that the City of Loveland has a 75% interest in the Property and the City of Fort Collins has the remaining 25% interest in the Property. Further, the Intergovernmental Agreement specifies that the City of Loveland is the managing entity for this property. Since the purchase of this property, the property has been used for dryland farming. Of the total 785 acres, only 550 acres of land are being used for rotational wheat crops, with 275 acres in crop production annually and the remaining land being fallow. The terms of the lease will require payment of$10 per acre for the acreage planted. The lease can be automatically renewed each year on July 31 with a final termination date of July 31, 2008. The Natural Resources Advisory Board considered and recommended that the Council authorize the proposed lease of this property at its meeting on October 6, 2004. ORDINANCE NO. 168, 2004 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE LEASE OF THE NATURAL AREA LOCATED SOUTH OF FORT COLLINS JOINTLY OWNED BY THE CITY OF FORT COLLINS AND THE CITY OF LOVELAND FOR DRYLAND WHEAT FARMING FOR UP TO FIVE YEARS WHEREAS, the City of Fort Collins, Colorado (the "City') and the City of Loveland jointly own a 785-acre property south of Fort Collins and west of Taft Hill Road (the "Property"); and WHEREAS, the City and the City of Loveland entered into an Intergovernmental Agreement ("IGA") on March 22, 2000, regarding their joint ownership of the Property and related rights and responsibilities; and WHEREAS, the IGA provided that the City of Loveland would be the Managing Entity and would be responsible for the management of the Property; and WHEREAS, Fort Collins and Loveland staffs have negotiated a lease agreement for dryland wheat farming on the Property, the form of which, entitled Dryland Farm Lease and dated October 5, 2004, is on file in the office of the City Clerk and available for public inspection (the "Lease Agreement"); and WHEREAS, the Lease Agreement provides that 550 acres of the 785 acre Property may be used for rotational wheat crops, with 275 acres in crop production annually, and with the remaining land being fallow; and WHEREAS, the term of the Lease Agreement is for a period of up to five years at an annual rate of$10/Acre for the acreage planted; and WHEREAS, the term of the Lease Agreement will automatically renew at the end of July each year until July 31, 2008; and WHEREAS, the revenue from the Lease Agreement will be paid to the Managing Entity (City of Loveland) for use in managing the 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 Council hereby finds that the lease of the Property as provided 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 execute the Lease Agreement consistent with the terms of this Ordinance, together with such additional or modified terms and conditions as the City Manager, in consultation with the City attorney, determines to be necessary and appropriate to protect the interests of the City. Introduced, considered favorably on first reading, and ordered published this 19th day of October, A.D. 2004, and to be presented for final passage on the 16th day of November, A.D. 2004, Mayor ATTEST: City Clerk Passed and adopted on final reading on the 16th day of November, A.D. 2004. Mayor ATTEST: City Clerk Dryland Wheat Farm Lease Location Map = J CO W TRIL Y F R y O E H m All g ' I CO N ® Lease Property A W � E SS