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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 05/17/2005 - ITEMS RELATING TO THE PURCHASE AND LEASE OF PROPER ITEM NUMBER: 8 A-B AGENDA ITEM SUMMARY DATE: May 17, 2005 FORT COLLINS CITY COUNCIL STAFF: Ken Mannon Helen Matson SUBJECT Items Relating to the Purchase and Lease of Property Located at 212 LaPorte Avenue. RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading and of the Resolution. FINANCIAL IMPACT Ten months of rental payment ($30,000) will be paid to the City of Fort Collins at the time of closing and will be used as part of our purchase price of the property. Rent collected after the tenth month will result in unanticipated revenue to Operation Services. The tenant will pay all expenses for maintenance, utilities,janitorial and taxes. EXECUTIVE SUMMARY A. Second Reading of Ordinance No. 050, 2005, Appropriating Unanticipated Revenue in the Capital Projects Fund - Building Community Choices - New Main Library / Acquisition and Design Capital Project and Authorizing the Transfer Between Funds of Existing Revenue to be used to Purchase Property Located at 212 LaPorte Avenue. B. Resolution 2005-049 Authorizing the City Manager to Execute a Lease Agreement for 212 Laporte Avenue, Fort Collins, Colorado to Abraxis Art Glass & Doors, Inc. The City of Fort Collins developed the Downtown Civic Center Master Plan in 1996. At that time, the Plan called for Block 32 to have municipal government offices and a library. The Plan includes a pedestrian corridor through the middle of the block. The City has purchased most of the Block, but there are currently two properties still under individual ownership. The City constructed its new office building on the east half of Block 32 and the Plan contemplates the construction of the new Library on the westerly side of Block 32. This Library is part of the Building Community Choices. During the design phase of the office building at 215 North Mason, staff attempted to acquire the property 212 West LaPorte Avenue. The owner did not want to sell. The decision was made to design and construct the building without impacting the property at 212 West LaPorte Avenue. May 17, 2005 -2- Item No. 8 A-B The existing building impacted the continued flow of the pedestrian corridor and there have been parking issues since the City's occupation of the office building. The owner of 212 West LaPorte Avenue is moving his business and has approached the City to purchase the property. This is a good opportunity to purchase this site for the City's future use on the Block. With this property, the City will own the entire Block except for the southwesterly corner. Buying today with a willing seller will save the City money in the future and, until the Block is developed, the City will rent the property to generate income. The purchase price is $625,000. The seller will be leasing the premises after closing until his building is built. At the time of closing, the purchase price will be credited by $30,000 for ten month's rent of the property. The balance due after this credit is $595,000, of which $250,000 is available in the capital Projects fund - Building Community Choices - New Main Library/Acquisition and Design capital project. In addition, staff is recommending that Council use existing appropriations in the Capital Projects Fund - Major Building Maintenance, totaling $345,000, for the balance of the purchase price. Ordinance No. 050, 2005, which approves funding for the acquisition of this property, was unanimously adopted on First Reading on May 3, 2005. Until the time this property is needed for construction of the Library, the City will rent the property. The first tenant will be the existing occupant of the building, Abraxis Art Glass & Doors, Inc. The owner of this company is constructing a new building at another location and until the construction is complete, the company will rent this space from the City at the rate of $3,000 per month. At the time of closing, the tenant will pay to the City $30,000, representing 10 month's rental payment. The term of this Lease is for one year, with an option to renew for a second year. The lease also allows the tenant to terminate the lease without penalty upon thirty (30) days notice to the City. During the term of this lease, the tenant will be responsible for the following costs: building maintenance, taxes,janitorial and all utilities. ORDINANCE NO. 050, 2005 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING UNANTICIPATED REVENUE IN THE CAPITAL PROJECTS FUND - BUILDING COMMUNITY CHOICES -NEW MAIN LIBRARY/ACQUISITION AND DESIGN CAPITAL PROJECT AND AUTHORIZING THE TRANSFER BETWEEN FUNDS OF EXISTING REVENUE TO BE USED TO PURCHASE PROPERTY LOCATED AT 212 LAPORTE AVENUE WHEREAS, the City Council adopted Resolution 1996-086, on July 16, 1996, adopting the Civic Center Master Plan (the "Plan"), a collaborative planning tool developed by the City and Larimer County to be used for the various uses and developments that the City and the County seek to encourage and facilitate as a civic and government center in Fort Collins; and WHEREAS, potential uses for Block 32, located between Maple Street and LaPorte Avenue on the north and south and Mason and Howes Streets on the east and west, as covered in the Plan, included the construction of municipal government offices and a library; and WHEREAS, in accordance with the Plan, in 2000, the City constructed a City Office Building on the southeast corner of Block 32; and WHEREAS, in 2001, the City purchased the Poudre Feed property (208 N. Howes) and the Poudre Valley Creamery Property (222 LaPorte Avenue), both located on Block 32, as potential sites for a new main library; and WHEREAS, the property located at 212 LaPorte Avenue (the"Property") which houses a local business, located between the City Office Building and the Poudre Valley Creamery property, is currently under individual ownership; and WHEREAS, the owner of the Property is moving and relocating his business and has approached City staff about the possibility of selling said property to the City; and WHEREAS, purchase of the Property would allow the City to control ownership of the entire block, with the exception of a property located on the northwest corner of the block; eliminate some parking issues associated with the City Office Building; and possibly generate income from the Property through rental agreements, until such time that decisions are made towards further development of Block 32; and WHEREAS, staff recommends purchasing the Property, located at 212 LaPorte Avenue, at a cost of$625,000; and WHEREAS, staff has identified existing appropriations in the Capital Projects Fund - Building Community Choices - New Main Library/Acquisition and Design capital project, totaling $250,000, and existing appropriations ($345,000) in the Capital Projects Fund - Major Building Maintenance capital project, and $30,000, in unanticipated revenue in the form of prepaid rent and credited against the purchase price of the Property at closing, in the Capital Projects Fund - Building Community Choices - New Main Library/Acquisition and Design capital project to be used to purchase the property located at 212 LaPorte Avenue; and WHEREAS, Article V, Section 9, of the Charter of the City of Fort Collins (the "Charter") 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, staff has determined that the appropriation of the unanticipated revenue as described herein will not cause the total amount appropriated in the Capital Projects Fund - Building Community Choices -New Main Library/Acquisition and Design capital project budget to exceed the current estimate of actual and anticipated revenues to be received during any fiscal year; and WHEREAS, Article V, Section 10 of the Charter authorizes the City Council to transfer by ordinance any unexpended and unencumbered amount or portion thereof from one fund or capital project to another fund or capital project, provided that the proposed transfer is from a fund or capital project account in which the amount appropriated exceeds the amount needed to accomplish the purpose specified in the appropriation ordinance; and WHEREAS, it is the desire of the Council to authorize the transfer of$345,000 from the Capital Projects Fund- Major Building Maintenance capital project to the Capital Projects Fund- Building Community Choices - New Main Library/Acquisition and Design capital project, and appropriate $30,000 in unanticipated revenue in the Capital Projects Fund - Building Community Choices - New Main Library/Acquisition and Design capital project to be used with existing appropriations therein, totaling $250,000, to purchase the property located at 212 LaPorte Avenue.. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the unexpended appropriated amount of THREE HUNDRED FORTY- FIVE THOUSAND DOLLARS ($345,000) is hereby authorized for transfer from the Capital Projects Fund - Major Building Maintenance capital project to the Capital Projects Fund - Building Community Choices - New Main Library/Acquisition and Design capital project, to be used with existing appropriations therein, totaling $250,000, to purchase the property located at 212 LaPorte Avenue.. Section 2. That there is hereby appropriated for expenditure from unanticipated revenue in the Capital Projects Fund -Building Community Choices -New Main Library/Acquisition and Design capital project the sum of THIRTY THOUSAND DOLLARS ($30,000) to be used with existing appropriations to purchase the property located at 212 LaPorte Avenue. Introduced and considered favorably on first reading and ordered published this 3rd day of May, A.D. 2005, and to be presented for final passa o the 17th day of May, D. X05. Mayor , ATTEST: City Clerk Passed and adopted on final reading this 17th day of May, A.D. 2005. Mayor ATTEST: City Clerk ITEM NUMBER: 17 AGENDA ITEM SUMMARY DATE: May3, 2005 FORT COLLINS CITY COUNCIL STAFF: Ken Mannon Helen Matson SUBJECT First Reading of Ordinance No. 050, 2005, Appropriating Unanticipated Revenue in the Capital Projects Fund - Building Community Choices - New Main Library / Acquisition and Design Capital Project and Authorizing the Transfer Between Funds of Existing Revenue to be used to Purchase Property Located at 212 LaPorte Avenue. RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. FINANCIAL IMPACT This Ordinance authorizes Ci '! Coune to tr s existingppropriations, totaling $345,000, from the Capital Projects Fun =1Wlajo '=Bu din Mainten ce capital project to the Capital Projects Fund - Building Community Choices - New Main Library/Acquisition and Design capital project to be used with existing appropriations therein, totaling $250,000, to be used to purchase the property at 212 West LaPorte Avenue. EXECUTIVE SUMMARY The City of Fort Collins developed the Downtown Civic Center Master Plan in 1996. At that time, the Plan called for Block 32 to have municipal government offices and a library. The Plan includes a pedestrian corridor through the middle of the block. The City has purchased most of the Block,but there are currently two properties still under individual ownership. The City constructed its new c b 'ng ..4 „the , t ���� of Block 32 and the Plan contemplates the construction these Libr o tli ;w erl side of Block 32. This Library is part of the Building Comm ty Choi s. ° During the design phase of the office building at 215 North Mason, staff attempted to acquire the property 212 West LaPorte Avenue. The owner did not want to sell. The decision was made to design and construct the building without impacting the property at 212 West LaPorte Avenue. The existing building impacted the continued flow of the pedestrian corridor and there have been parking issues since the City's occupation of the office building. The owner of 212 West LaPorte Avenue is moving his business and has approached the City to May 3, 2005 -2- Item No. 17 purchase the property. This is a good opportunity to purchase this site for our future use on the Block. With this property, the City will own the entire Block except for the southwesterly comer. Buying today with a willing seller will save the City money in the future and, until the Block is developed,the City wi rrent,�he rop y ug e mopme. The purchase price is $625,0 The s ler w' i b leasing t 'i premises after closing until their building is built. At the time o u,clos ng,�the, urc kse price ill be credited by $30,000 for ten month's rent of the property. The balance due after this credit is $595,000, of that there is $250,000 available in the capital Projects fund - Building Community Choices - New Main Library/Acquisition and Design capital project. In addition, staff is recommending that Council use existing appropriations in the Capital Projects Fund - Major Building Maintenance, totaling $345,000, for the balance of the purchase price. ATTACHMENTS 1. Location Map RESOLUTION 2005-049 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE CITY MANAGER TO EXECUTE A LEASE AGREEMENT FOR 212 LAPORTE AVENUE, FORT COLLINS, COLORADO TO ABRAXIS ART GLASS & DOORS, INC. WHEREAS, the City of Fort Collins, Colorado ("City"), is planning to purchase the property located 212 Laporte Avenue, Fort Collins, Colorado ("Property"); and WHEREAS, the Property is being purchased as part of the Civic Center Master Plan as the future site of a new Library; and WHEREAS, until the City commences construction of the Library, the City desires to lease the Property; and WHEREAS, the seller of the Property has proposed to lease the Property for up to two years or until his new facility is constructed, at a rental rate of$3,000 per month; and WHEREAS, at the closing on the Property, the seller shall pay to the City the sum of $30,000 for a ten-month rental of the property and said sum will be deducted from the purchase price of the Property; WHEREAS, the lease of the Property is beneficial in that it will generate revenue; 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 RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the Council hereby finds that leasing the Property under the terms listed above is in the best interests of the City of Fort Collins. Section 2. That the City Manager is hereby authorized to execute such lease agreements for the Property, consistent with the terms of this Resolution, together with such additional 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. Passed and adopted at a regular meeting of the Council of the City of Fort Collins held this 17th day of May A.D. 2005. Mayor ATTEST: City Clerk