HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 08/19/2008 - ITEMS RELATING TO BERNARD RANCH PHASE 1 ITEM NUMBER: 17 A-B
AGENDA ITEM SUMMARY DATE: August 19, 2008
FORT COLLINS CITY COUNCIL STAFF: Rachel Steeves
SUBJECT
Items Relating to Bernard Ranch Phase 1.
RECOMMENDATION
Staff recommends adoption of both Ordinances on First Reading.
The Land Conservation and Stewardship Board will discuss this item at its August 13, 2008
meeting. An excerpt of the meeting minutes related to this item will be placed in the City Council's
"Read Before"packet.
FINANCIAL IMPACT
Transferring the conservation easement to Larimer County will have minimal administrative
associated costs.
The grant received from Great Outdoors Colorado for Phase 1 of the Bernard Ranch purchase is
$265,792.
The ultimate cost of conserving the Bernard Ranch depends on whether or not the City sells the
ranch to a conservation-minded buyer, as originally planned, or retains full fee interest. The initial
acquisition was $1,045,000 (880 acres x $1,188/acre). Great Outdoors Colorado (GOCO) will
contribute $265,792 towards the cost of placing a conservation easement on the first phase of the
property,reducing the City's costs to$779,207. If the ranch were sold with a conservation easement
in place for an approximate fair market value of $306,500, the net cost to the City would be
$472,707 (our financial match to the conservation easement value for the GOCO Grant). If,
however, the property is retained by the City, the cost would be $779,207.
EXECUTIVE SUMMARY
A. First Reading of Ordinance No. 095, 2008,Authorizing the Conveyance of a Conservation
Easement on City Natural Area Property (Bernard Ranch Phase 1) to Larimer County; and
Authorizing a Related Grant Agreement with the Board of the Great Outdoors Colorado
Trust Fund.
B. First Reading of Ordinance No. 096, 2008, Appropriating Unanticipated Grant Revenue in
the Natural Areas Fund for Land Conservation.
August 19, 2008 -2- Item No. 17 A-B
Ordinance No. 095, 2008, authorizes the conveyance of an 880-acre conservation easement on
Bernard Ranch, Phase 1, from the City's Natural Area Program to Larimer County and authorizes
entering into a grant agreement with the Board of the Great Outdoors Colorado Trust Fund. The
City will receive a$265,792 grant from Great Outdoors Colorado to support the conservation of the
property. The grant requires that a conservation easement be placed on the property and conveyed
to a qualified third party. The conservation easement acknowledges and protects the natural
qualities of the property. It also allows continued ranching and other compatible activities.
Ordinance No.096,2008,appropriates the funds to be received from GOCO into the Natural Areas
Program for further land conservation efforts.
BACKGROUND
Over the last four years, the City has been involved in a major land conservation endeavor in the
northern portion of the County known as the Laramie Foothills Mountains to Plains (LFMTP)
Project. The core of the Project is represented by two properties,the Soapstone Prairie Natural Area
(owned by the City)and the Red Mountain Ranch(owned by Latimer County). In Spring 2004,the
City purchased Soapstone. In the Fall 2004, the City, County, and other partners applied for and
received an$11.6 million grant from Great Outdoors Colorado. These funds were used to purchase
the Red Mountain Ranch and were also used to purchase conservation easements on several
surrounding properties. The City currently holds the conservation easement on Red Mountain
Ranch.
Just to the south of Soapstone Prairie and located at the northern end of County Road 15, there are
several properties that were not included in the first phase of the LFMTP project. Natural Areas is
striving to conserve these properties for two important reasons:
1. These lands surround the northern end of the access road to Soapstone, which the County
recently named Rawhide Flats Road. Conserving these lands conserves the incredible views
from the access road,which will greatly enhance Soapstone Prairie visitors' experience.
2. Encroaching development threatens this landscape-scale wildlife habitat that makes the
LFMTP conservation project so unique.
The Natural Areas Program was successful in receiving two GOCO grants for conserving the
neighboring Round Butte Ranch(1,360 acres)for a total amount of$428,700. In 2006,City Council
authorized the temporary conveyance of the conservation easement to Larimer County for each of
the phases of Round Butte Ranch, pending its potential sale to a conservation buyer.
This Bernard Ranch land conservation effort with GOCO is very similar to the Round Butte Ranch
transaction. Because the Natural Areas Program has already made substantial investments in this
Laramie Foothills area,the City has requested a grant from GOCO to help defray the City's cost of
the retained conservation easement on the Bernard Ranch.
The Natural Areas Program recently was notified that the first phase of the Bernard Ranch grant
application for the initial 880-acre portion of the property was successful in the amount of$265,792.
August 19, 2008 -3- Item No. 17 A-B
The City's match to this grant will be $472,707. Natural Areas staff plan to apply for additional
GOCQ grants to help defray the cost of conserving additional phases of the Bernard Ranch purchase.
As a condition of the grant agreement, the Natural Areas Program is required to convey a
conservation easement on the Bernard Ranch to another entity during the period of time that the City
continues to own the property (i.e., prior to its potential sale to a conservation-minded buyer).
Thus,the Natural Areas Program is proposing to convey a conservation easement to Larimer County
on this initial 880-acre portion of the property. The conservation easement recognizes and protects
the natural and scenic values of the property, and allows ranching.
Larimer County has indicated its willingness to accept the conservation easement, and also its
willingness to convey the easement back to the City if the underlying fee interest is sold to a
conservation-minded purchaser. This arrangement is similar to the situation on Red Mountain
Ranch where the City holds the easement. Portions of the 15,000-acre Red Mountain Ranch will
be sold to conservation-minded buyers and, when these sales have been completed, the City will
convey the conservation easement that it holds now back to the County.
ATTACHMENTS
1. Bernard Ranch Location Map.
2. Bernard Ranch Phase 1.
Fort Collins Map 1 : Bernard Ranch Phase I nN
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ORDINANCE NO, 095, 2008
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE CONVEYANCE OF A CONSERVATION EASEMENT
ON CITY NATURAL AREA PROPERTY (BERNARD RANCH PHASE 1)
TO LARIMER COUNTY AND AUTHORIZING A RELATED GRANT AGREEMENT
WITH THE BOARD OF THE GREAT OUTDOORS COLORADO TRUST FUND
WHEREAS,the Board of the Great Outdoors Colorado Trust Fund(the"GOCO Board")is
a political subdivision of the State of Colorado, created by Article XXVII of the Colorado
Constitution, adopted at the November 1992 General Election, which Article allocates a portion of
the net proceeds of the Colorado Lottery to the Board and directs the Board to invest those proceeds
in the State's parks, wildlife, open space and recreational resources; and
WHEREAS, the City has contracted to acquire the Bernard Ranch, a property 1,760 acres
in size to the south of Soapstone Prairie Natural Area and located along County Road 15, of which
880 acres have been purchased and 880 acres are under option to purchase; and
WHEREAS,the GOCO Board has approved a grant to the City to support the conservation
of Phase 1 of Bernard Ranch,which is'880 acres in size and is more particularly described in Exhibit
"A", attached hereto and made a part hereof(the "Phase I Property"), in the amount of$265,792,
which is a substantial share of the City's cost to acquire and conserve that property; and
WHEREAS, in order to issue said grant, the GOCO Board will require that the City enter
into a grant agreement setting forth the City's obligations in connection with the grant; and
WHEREAS, a copy of the grant agreement required by the GOCO Board, dated August 13,
2008, is on file in the office of the City Clerk and available for public inspection (the "Grant
Agreement"); and
WHEREAS, as a requirement of the grant,the City must convey to an approved third party,
in this instance Larimer County, a conservation easement intended to protect the Phase I Property
from uses contrary to the purposes of the GOCO Board's grant program; and
WHEREAS, staff has negotiated with the staff of the GOCO Board and Larimer County
certain conservation easement terms and conditions to which the Phase I Property shall upon
conveyance be subject, a copy of which conservation easement, dated August 13, 2008, is on file
in the Office of the City Clerk and available for public inspection (the "Conservation Easement");
and
WHEREAS, the City is authorized to enter into intergovernmental agreements to provide
any function, service or facility, such as a grant agreement, as provided in Article II, Section 16 of
the Charter of the City of Fort Collins and Section 29-1-203, C.R.S.
WHEREAS, under Section 23-1 I 1 of the Code of the City of Fort Collins, the Council is
authorized to sell or otherwise dispose of any and all interests in real property owned in the name
of the City, provided that Council first finds by ordinance that the sale or disposition 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 conveyance of the Conservation Easement on the Phase I Property
to Larimer County is in the best interests of the City.
Section 2. That the Mayor is hereby authorized to execute the Grant Agreement, in
substantially the form for the same dated August 13, 2008, and on file in the Office of the City
Clerk, subject to such modifications,amendments or additions thereto as may be determined by the
City Manager, in consultation with the City Attorney, to be necessary or appropriate to protect the
interests of the City.
Section 3. That future amendments to the Grant Agreement not otherwise provided for
herein may be approved by the Council by resolution rather than by ordinance.
Section 4. That the Mayor is hereby authorized to execute the Conservation Easement
in substantially the form for the same dated August 13, 2008, and on file in the Office of the City
Clerk, subject to such modifications in form or substance as the City Manager, in consultation with
the City Attorney,may deem necessary to effectuate the purposes of this Ordinance or to protect the
interests of the City,including any necessary corrections to the legal descriptions shown thereon that
do not result in a material increase or change in the character of the property intended to be
conveyed.
Introduced, considered favorably on first reading, and ordered published this 19th day of
August,A.D. 2008, and to be presented for final passage on the 2nd day of September, A.D. 2008.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading on the 2nd day of September, A.D. 2008.
Mayor
ATTEST:
City Clerk
EXHIBIT A
Legal Description of Property
(Bernard Ranch Phase 1 )
The West 'h and the NW '/4 of the NE '/4 Section 10, Township 11 North, Range 69 West of the
6"' P .M; AND the N 'h of the NW '/4 of Section 15 , Township 11 North, Range 69 West of the
6th P .M. , containing approximately 440 acres, and
The NE '/4 of the NE '/4, the S '/2 of the NE '/4, the N '/2 of the SE '/4, and the W 'h of the SW '/4
of the SE '/4 of Section 10, Township 11 North, Range 69 West of the 6th P .M. , containing
approximately 220 acres, and
The S '/2 of the NW '/4, the W '/Z of the NE '/4, the NW '/4 of the SW '/4 and the W '/2 of the NE
'/4 of the SW '/4 of Section 11 , Township 11 North, Range 69 West of the 6th P.M. , containing
approximately 220 acres.
ORDINANCE NO. 096, 2008
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROPRIATING UNANTICIPATED GRANT REVENUE
IN THE NATURAL AREAS FUND FOR LAND CONSERVATION
WHEREAS,over the last four years,the City has been involved in a major land conservation
endeavor in the northern portion of Larimer County known as the Laramie Foothills Mountains to
Plains project (the "Project'); and
WHEREAS, the core of the Project is represented by two properties, the City-owned
Soapstone Prairie Natural Area ("Soapstone Prairie") and the Red Mountain Ranch (owned by
Larimer County); and
WHEREAS, there are several properties south of Soapstone Prairie, located at the northern
end of county Road 15 that were not purchased in the first phase of the Project; and
WHEREAS, Natural Areas wishes to preserve the spectacular views from the Soapstone
Prairie access road and prevent development from encroaching on this wildlife habitat that make the
Project unique; and
WHEREAS,the City has already received two Great Outdoors Colorado Grants to preserve
the neighboring Round Butte Ranch that Council approved in 2006; and
WHEREAS,the Bernard Ranch land conservation effort is very similar to the Round Butte
Ranch transaction and the City has been awarded a Great Outdoors Colorado Grant in the amount
of$265,792 to support the conservation of this land; and
WHEREAS,Article V, Section 9,of the Charter of the City of Fort Collins permits the City
Council to make supplemental appropriations by ordinance at any time during the fiscal year,
provided that the total amount of such supplemental appropriations,in combination with all previous
appropriations for that fiscal year, does not exceed the current estimate of actual and anticipated
revenues to be received during the fiscal year; and
WHEREAS, City staff have determined that the appropriation of the revenue as described
herein will not cause the total amount appropriated in the Natural Areas Fund to exceed the current
estimate of actual and anticipated revenues to be received in that fund during any fiscal year.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS that there is hereby appropriated from unanticipated revenue in the Natural Areas Fund
the sum of TWO HUNDRED SIXTY-FIVE THOUSAND SEVEN HUNDRED NINETY-TWO
DOLLARS ($265,792) for expenditure in the Natural Areas Fund for land conservation efforts.
Introduced, considered favorably on first reading, and ordered published this 19th day of
August, A.D. 2008, and to be presented for final passage on the 2nd day of September, A.D. 2008.
Mayor
ATTEST:
City Clerk
Passed and adopted on final rending on the 2nd day of September, A.D. 2008.
Mayor
ATTEST:
City Clerk