HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/07/2000 - FIRST READING OF ORDINANCE NO. 163, 2000, AUTHORIZ AGENDA ITEM SUMMARY ITEM NUMBER: 21
FORT COLLINS CITY COUNCIL DATE: November 7, 2000
STAFF: Virgil Taylor
SUBJECT:
First Reading of Ordinance No. 163, 2000, Authorizing the Lease of the Building on the City's
"Pickle Plant" Property to Dellenbach Motors for Automobile Storage.
RECOMMENDATION:
Staff recommends adoption of the Ordinance on First Reading.
FINANCIAL IMPACT:
The 15,000 square foot building will be leased for$7,500 per quarter. This equates to$2 per sq.ft.,
which is the market rate for this space, given its condition. The building is in poor condition and
Dellenbach will be responsible for any repairs needed to keep the site usable. The lease money will
be set aside in the Conservation Trust Fund for future renovation of the Pickle Plant Site.
EXECUTIVE SUMMARY:
The Council adopted the Poudre River Use Framework on May 16, 1995. The Pickle Plant Site was
one of the four key parcels of land identified for City acquisition. The City acquired the site in
1995. In order to help fund the acquisition of the Pickle Plant Site,the storage facility at the site was
leased to Larrabee's Home Furnishing Center,LTD. for five years.The lease expires on December
22, 2000. Larrabee's is going out of business and will no longer need the storage facility.
Dellenbach Motors has expressed interest in leasing the facility to store classic automobiles. The
lease term will be on a renewable quarter to quarter basis. The lease is subject to termination by
the City at any time, upon proper notice to Dellenbach. Any funds collected from the lease will be
set aside for future renovation of the Pickle Plant Site.
ORDINANCE NO. 163, 2000
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE LEASE OF THE
BUILDING ON THE CITY'S "PICKLE PLANT" PROPERTY
TO DELLENBACH MOTORS FOR AUTOMOBILE STORAGE
WHEREAS, the City of Fort Collins is the owner of that certain property located at 500
Riverside Avenue in Fort Collins,consisting of approximately 4 acres of land and generally known
as the"Pickle Plant"property,a portion of which contains a 15,000 square foot storage building(the
"Leased Property"); and
WHEREAS,the City acquired the Pickle Plant in 1995 in accordance with the Poudre River
Use Framework approved by the Council on May 16, 1995; and
WHEREAS,upon acquisition of the Pickle Plant,the City entered into a lease of the Leased
Property to Larrabee's Home Furnishing Center, for furniture storage, which lease expires on
December 22, 2000, and will not be renewed; and
WHEREAS, Dellenbach Motors has expressed interest in leasing the Leased Property for
storage of classic automobiles, and City staff has determined that the City has no immediate use for
the Leased Property due to its poor condition; and
• WHEREAS, the City has negotiated with Dellenbach Motors a lease setting out their
respective rights and responsibilities regarding the Leased Property, which provides for quarterly
lease payments to the City in the amount of$7,500, adjusted annually for inflation, for successive
quarters until terminated by written notice of either Dellenbach or the City,(the"Lease Agreement");
and
WHEREAS,the Lease Agreement also provides that Dellenbach Motors will be responsible
for any repairs or maintenance necessary to allow continued use of the Leased Property by
Dellenbach; and
WHEREAS,a copy of the Lease Agreement,dated November 3,2000,is on file in the Office
of the City Clerk and available for inspection; 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,by resolution,
for a period of up to two years,and by ordinance for a longer period,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 leasing the Leased Property at the Pickle Plant to Dellenbach Motors for
automobile storage, under the terms and conditions described in this Ordinance 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,
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 said lease, as set forth herein, or to
otherwise protect the interests of the City.
-Introduced, considered favorably on first reading, and ordered published this 7th day of
November, A.D. 2000, and to be presented for final passage on the 21st day of November, A.D.
2000.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading this 21st day of November, A.D. 2000.
Mayor
ATTEST:
City Clerk
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