HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 03/20/2001 - FIRST READING OF ORDINANCE NO. 49, 2001, ADOPTING AGENDA ITEM SUMMARY ITEM NUMBER: 19
FORT COLLINS CITY COUNCIL DATE: March 20, 2001
FROM: Ted Shepard
SUBJECT:
First Reading of Ordinance No. 49, 2001, Adopting a Development Agreement Extending the
Term of Vested Property Rights for Hewlett-Packard at the Harmony Technological Park Final
Plan from Three Years to Fifteen Years.
RECOMMENDATION:
Staff recommends adoption of the Ordinance on First Reading.
EXECUTIVE SUMMARY:
Section 2.2.11(D)(3) of the City's Land Use Code grants Council the authority to extend the term
of a vested property right for a site specific development plan beyond the normal maximum term
of three years as allowed by the Land Use Code for projects meeting the definition of"large base
industry." Such an extension is also permitted under the state vested rights statute. Hewlett-
Packard at the Harmony Technological Park is a 61-acre campus featuring six buildings
containing 750,000 square feet to be constructed over a time frame that exceeds three years.
This project meets the definition of "large base industry" and the applicants have requested a
term of 15-years during which the property rights allowed by the Final Plan would be vested.
BACKGROUND:
Hewlett-Packard Corporation, in Fort Collins, meets the Land Use Code definition of a "large
base industry" defined as:
.. a firm that: (1) produces, or will produce, manufactured goods, at least eighty (80)
percent of which are, or will be, produced for export to areas outside of the city; (2)
employs, or will employ, no fewer than one hundred (100) persons for at least thirty-five
(35) hours of year-round employment per week; and (3) owns or leases, or will own or
lease real property or equipment within the city limits that is used in the operation or the
firm's business and that has or will have, as of the date of the commencement of the
firm's operation, a fair market value of no less than one hundred million dollars
($100,000,000.)."
Hewlett-Packard has provided information regarding consolidating Northern Colorado
operations into the proposed Harmony Technological Park. This includes moving employees
from the Greeley operation, which is closing, and from Loveland, which has converted to
Agilent, now a separate and distinct company (see attached). This consolidation is expected to
take longer than three years.
DATE: March 20, 2001 2 ITEM NUMBER: 19
The Hewlett-Packard at Harmony Technological Park project is large-scale campus comprising
six buildings containing 750,000 square feet on 61 acres. The campus will be constructed in
phases. Full build-out is expected in 15 to 20 years.
The Project Development Plan covers the entire 61 acres and is thoroughly detailed with specific
site planning, street pattern, utility layout, landscape design and architectural elevations. The
P.D.P. complies with the standards of the Land Use Code and will be considered by the Planning
and Zoning Board on March 15, 2001. Recording of the Final Plan and execution of the
Development Agreement will closely follow.
Since the 61-acre campus is being designed to final specifications, it will be considered a "site
specific development plan" which is normally allowed a three year term of vested property
rights. Yet the full build-out and occupancy of such a large campus will effectively exceed three
years.
Staff has examined the request. The Project Development Plan sets in place a pattern of
development and establishes a baseline of streets, buildings, utilities, landscaping and other
design attributes. This baseline complies with Land Use Code. It will be logistically difficult
and complex for future phases to deviate from the basic parameters of this 61-acre plan.
The extension of the vested property rights term is logical and efficient. It would not serve the
public interest to let the vacant portion of the campus expire, only to have to be re-submitted in
essentially identical form, for the mere purpose of re-reviewing compliance with the Land Use
Code. Such a time-consuming exercise would not be an efficient use of either public or private
sector resources.
Since the project is now in a highly detailed and refined design state, staff is comfortable that
future development, beyond the normal three years, will continue to comply with the Land Use
Code, fulfill the vision of the Harmony Corridor Plan, and implement the goals and objectives of
City Plan.
The extended term of 15 years would be established by the proposed agreement between the City
and Hewlett-Packard Corporation that would be approved by this Ordinance. The agreement
would allow the City to apply such ordinances or regulations as may exist at the time of
development that are general in nature and are applicable to all property subject to land use
regulation by the City, as permitted under Section 24-68-105(2) C.R.S..
ORDINANCE NO. 49, 2001
OF THE COUNCIL OF THE CITY OF FORT COLLINS
ADOPTING A DEVELOPMENT AGREEMENT EXTENDING THE
TERM OF VESTED PROPERTY RIGHTS FOR HEWLETT-PACKARD AT THE
HARMONY TECHNOLOGICAL PARK FINAL PLAN FROM
THREE YEARS TO FIFTEEN YEARS
WHEREAS, Section 2.2.11(D)(3) of the Land Use Code establishes a three-year term of
vested property right for approved final development plans and also authorizes the City Council to
adopt a development agreement extending the term of vested property'right provided by such
development agreement be adopted by ordinance of the Council as a legislative act subject to
referendum and provided that the subject development constitutes a 'large-base industry"; and
WHEREAS, the Hewlett-Packard Corporation desires to obtain a 15-year term of vested
property right for its Harmony Technological Park Campus,which features six buildings containing
750,000 square feet of floor area to be constructed over a time frame that exceeds three years; and
WHEREAS, the Hewlett-Packard Corporation qualifies as a 'large-base industry" as that
term is defined in Section 5.1.2 of the Land Use Code; and
WHEREAS, due to the size and complexity of the Hewlett-Packard at Harmony
• Technological Park Plan,the Council has determined that,if such development plan is approved by
the City,it would be in the best interests of the City that said plan be granted a 15-year term of vested
property right.
NOW,THEREFORE,BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS that, pursuant to Section 2.2.11(D)(3) of the Land Use Code, the Hewlett-Packard at
Harmony Technological Park Final Plan, if approved by the City,shall be granted a 15-year term of
vested property right for development in accordance with the approved final development plan
documents and in accordance with the Development Agreement Regarding Vested Rights,attached
hereto and incorporated herein as Exhibit "A".
Introduced and considered favorably on first reading and ordered published this 20th day of
March, A.D. 2001, and to be presented for final passage on the 17th day of April, A.D. 2001.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading this 17th day of April, A.D. 2001.
Mayor
ATTEST:
City Clerk
. DEVELOPMENT AGREEMENT EXHIBIT "A"
REGARDING VESTED RIGHTS
THIS DEVELOPMENT AGREEMENT REGARDING VESTED RIGHTS (this
"Agreement") is entered into as of the day of 2001,
by and between the CITY OF FORT COLLINS, COLORADO, a municipal corporation
(the "City"), and HEWLETT-PACKARD COMPANY, a Delaware corporation (the
"Company").
RECITALS
WHEREAS, the Company owns certain property in the City, Latimer County,
Colorado, as more specifically described in Exhibit A attached hereto and by this
reference incorporated herein and labeled "Harmony Technology Park" (the
"Property");
WHEREAS, the Company has annexed the Property to the City;
WHEREAS, the Company intends to develop the Property and create a site
specific development plan for the Property;
WHEREAS, the site specific development plan contemplates that the
development of the Property shall take at least fifteen(15) years;
WHEREAS,the Company desires that the term of its vested right in the Property
be fifteen (15) years; and
WHEREAS, development of the Property will produce substantial economic
benefits for the City in the form of increased property, use and sales taxes and new jobs
and other economic development, all of which promote the general welfare of the citizens
of the City and others.
NOW THEREFORE, in consideration of the premises and the mutual covenants
contained herein, the parties agree as follows:
AGREEMENT
1. Consent. The Company hereby intends to develop the Property subject to
the terms and conditions of its site specific development plan and the terms and
conditions of this Agreement and any subsequent development agreements executed by
the parties. In the event the City enters into this Agreement prior to approval of the site
specific development plan by the City Council of the City, the parties agree that the
binding effect of this Agreement is expressly conditioned upon such approval by the City
Council.
2. Vested Rights. Pursuant to Section 2.2.11 of the Fort Collins Land Use
Code and applicable Colorado law, including C.R.S. 24-68-101, et seq., the parties agree
that the Company shall have fifteen (15) years (the "Term of the Vested Property
Right") following the approval of the Company's final plan or other site specific
development plan to (i) undertake and complete the development and use of the Property
under the terms and conditions of the final approved site specific development plan and
site development agreement and (ii) install and complete all engineering improvements
(water, sewer, streets, curb, gutter, street lights, fire hydrants, landscaping and storm
drainage) in accordance with City codes, rules and regulations, and the City will not
forfeit the Company's vested rights in the Property within the Term of the Vested
Property Right. The running of the Term of the Vested Property Right shall be tolled
during the pendency of any appeal, referendum, initiative or judicial action that is filed
that would, if successful, prevent the development of the Property. Nothing herein shall
be construed to prohibit the City from applying to the development of the Property such
ordinances or regulations as may exist at the time of development that are general in
nature and are applicable to all property subject to land use regulation by the City, as
permitted under § 24-68-105(2), C.R.S.
3. Appeal, Referendum, Initiative and Judicial Action. If any appeal,
referendum, initiative or judicial action is filed that would, if successful, have the effect
of preventing the development of the Property, the Company may delay commencement
of or actual construction of the public improvements, including the letting of bids and
including the provision of temporary electric service, until such referendum, initiative or
judicial action is finally resolved unless the City agrees to fully reimburse the Company
for the cost of the public improvements in the event that the referendum, initiative or
judicial action prevents the development of the Property. The City shall, to the extent
allowed by applicable laws and the Charter of the City, cooperate in the defense of the
Company, at the Company's expense, with regards to any referendum, initiative and
judicial action that would, if successful, have the effect of preventing the development of
the Property.
4. Incorporation. The terms and conditions of this Agreement shall be
deemed to be incorporated into the site-specific development plan, when approved by the
City.
5. Integration and Amendment. This Agreement represents the entire
Agreement between the parties with respect to the Property and supersedes all prior
written or oral agreements or understandings with regard to the obligations of the parties
with regard to the Property. This Agreement may only be amended by written agreement
signed by the Company and the City. Only the City Council, as a representative of the
City, shall have authority to amend this Agreement.
6. Remedies. In the event that a party breaches its obligations under this
Agreement, the injured party shall be entitled to monetary damages, equitable relief,
including specific performance, and such other remedies at law or in equity as may be
available under applicable law. In the event of litigation relating to or arising out of this
Agreement, the prevailing party, whether plaintiff or defendant, shall be entitled to,
recover costs and reasonable attorneys' fees.
• 7. Effective Date. This Agreement shall become effective on the date that it
is executed and delivered and has been approved by the City Council. If the City does not
approve the site specific development plan for the Property, this Agreement shall become
null and void and of no force or effect whatsoever. If the City does not approve the site
specific development plan for Property, neither party will be liable to the other for any
costs that the other party has incurred in the negotiation of this Agreement or in any other
matter related to the potential development of the Property.
8. Severability. Should any court of competent jurisdiction rule that any
term, condition or provision of this Agreement is illegal or otherwise unenforceable, it is
the intent of the parties that the remainder of the Agreement continue to be fully
enforceable and that all other rights and obligations of the parties shall continue to be
fully effective.
4. Binding Effect and Recordation. The promises made in this Agreement by
the Company shall be deemed to have been made by any corporation or other business
affiliated with the Company that acquires ownership or possession of all or any portion of
the Property. The parties agree to execute a memorandum of this Agreement that the
Company shall prepare and record with the Clerk and Recorder for Larimer County,
Colorado. It is the intent of the parties that their respective rights and obligations set forth
in this Agreement shall constitute equitable servitudes that run with the land and shall
benefit and burden any successors to the parties. The site specific development plan for
• the Property shall contain a note that it is subject to this Agreement and shall recite the
book and page or reception number where the memorandum of this Agreement is
recorded. The site specific development plan shall recite that all lienholders, if any, agree
to the terms and conditions of this Agreement and subordinate their interests to this
Agreement. The Company agrees to all promises made by the Company which shall
constitute equitable servitudes that run with the land, but the shareholders, officers,
representatives and agents of the Company shall have no personally liability for such
promises.
IN WITNESS WHEREOF, the parties have caused this Development Agreement
Regarding Vesting Rights to be executed as of the date first written above.
HEWLETT-PACKARD COMPANY,
a Delaware corporation
By:
Its:
•
ATTEST:
THE CITY OF FORT COLLINS,
COLORADO
By:
City Clerk
By:
Mayor
STATE OF COLORADO )
) ss.
COUNTY OF LARIMER )
The foregoing Development Agreement Regarding Vested Rights was executed
before me this _ day of - 2001, by ,
as of HEWLETT-PACKARD COMPANY, a
Delaware corporation.
WITNESS my hand and official seal.
My commission expires
Notary Public
STATE OF COLORADO )
ss.
COUNTY OF LARIMER )
The foregoing Development Agreement was executed before me this day
of 2001, by Ray Martinez, as Mayor, and by
as City Clerk, of the CITY OF FORT COLLINS,
COLORADO, a municipal corporation.
WITNESS my hand and official seal.
My commission expires
Notary Public
EXHIBIT A
LEGAL DESCRIPTION OF THE PROPERTY
\ClienisViMW ony Tech Park\Development Agmt Vested Rights#3 031201.doc
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December 5,2000
DEC1 3 2000 AN OSC APf ARCXILECLURf
Mr.Paul Eckman URBAN DESIGN
Deputy City Attorney 11 A N N I N G
City of Fort Collins By
P.O. Box 580
Ft. Collins, CO. 80522
RE: Vested Rights Request for Harmony Technology Park
Dear Paul,
BXA OES.0N. INC.
:,01 INNOVA110N ORIVf
In accordance with Article 2.2.11(C)paragraph D,subparagraphs(3)and(4)of the City . CD",„5. CO .B5:5
of Fort Collins Land Use Code I would like to request an extended term of vesting for TEL 970 115.7577
the above referenced project.The specific period of vesting requested is for fifteen (15) EAR $,B 2:5.,.2,
years from the date of approval of the site specific development plan as defined in
Article 5 Supplement 8, Section 5.1,Definitions,page 37 of the City of Fort Collins
Land Use Code.
The extended vesting is allowed if the industry is a"large base industry."The owner
and developer of the Harmony Technology Park is Hewlett Packard which qualifies as a
large base industry.Article 2 also states that vesting will only be extended if warranted.
On a separate attached narrative I have described HP's justification for the extended
vesting. I have also attached a draft Development Agreement prepared by Dave Dwyer
for your consideration regarding the specific agreement.
Please accept this as our formal request to City Council.We would like to proceed with
our request in parallel with our Site Specific Development Plan application which is
already in progress.
Thank you for your assistance in this matter,I look forward to hearing from you after
you have reviewed this application.
Sincerely,
bha es'
gn inc. by
Bra uce AHendee, ASLA
Principal
Copies to: Mr. Sam Gelpi, Hewlett Packard
Mr. Dave Dwyer,Dwyer,Huddleson, Ray
Mr.Ted Shepard, City of Fort Collins
Harmony Technology Park
• Hewlett-Packard
Justification for Extended Vesting
Background
Harmony Technology Park (HTP) is being planned for up to 1.5 million square feet of office
and technology space. Over the course of construction of the property more than 6,000 jobs
may be established. Many of these are high paying base level positions that fuel much of the
Fort Collins economy. The project is to be developed in a series of buildings which are
anticipated to be constructed over the next 25-30 years. An initial phase of approximately
275,000 SF is currently anticipated to commence in the year 2001, with a potential additional
275,000SF to be constructed in the year 2003. Over the course of the entire buildout, this
project would represent roughly a doubling of HP's commitment to Fort Collins.
In a similar way to the manner in which the original Fort Collins Campus was master planned
30 years ago, this new campus is being planned to provide a coherent image and function for
the entire complex. Similarly to the existing campus, the plan anticipates a central green that
will connect each of the major buildings by pedestrian walkways that flow through
attractively designed plazas, water features, and landscaped greens. Parking is separated from
pedestrian ways and buildings are located to allow for either connecting links or to be
immediately adjacent to each other.
. The proposed entitlement project to be vested is for six buildings ranging in size from
approximately i I0,000SF to 140,000 SF with a total buildout of approximately 740,000 SF.
The requested vesting area is approximately 60 acres of the entire 155 acre parcel which
comprises the full extent of the Harmony Technology Park. Celestica owns approximately 30
acres of the site. The remaining 65 acres has been master planned but is not being proposed
for site specific development at this time.
Purpose of Request
Hewlett-Packard is in the process of consolidating much of its operations in Northern
Colorado to the Fort Collins area. In addition they are planning for future growth of the
company and are banking land in Fort Collins to allow for part of this future growth. HP is
closing it's Greeley site and will be moving those employees to Fort Collins in 2002. In
addition HP's Loveland facility recently became an Agilent campus when the two
companies split in 1999. HP has a lease on some facilities on the Agilent campus but will be
moving those employees to Fort Collins when their lease with Agilent terminates in 2005.
The first four buildings of the proposed initial phase of construction will allow for those
consolidations plus some room for expansion. The remaining two buildings in this vesting
request are to allow for future growth.
1
HP is requesting a longer than normal vesting period because the entitlement drawings being
reviewed and approved by the City will take roughly 15-20 years to construct. The plan
proposed has a thoroughly interwoven set of design considerations that have driven the
development of the overall plan. Each has a ripple effect on the other issue if relocated or
changed. Some of the key elements include roadways and connectivity, trail systems,
utilities, parking layout and walking distances, drainage, a proposed campus green, and
pedestrian trail systems. The desire of the vesting request is to allow HP to build the plan as
proposed without having to incorporate major revisions that are time consuming and
potentially affect the integrity of the plan.
The land use proposal for which extended vesting is being requested represents considerable
time and investment by Hewlett-Packard and is intended to allow HP the flexibility to
respond quickly to market conditions by constructing new buildings rapidly when needed.
Time is critical in the computer industry. Each day that passes affects the competitive
environment in the world of technology. It is vital for HP to be able to move quickly and
decisively when a new opportunity arises. In order to keep up with this fast paced world, HP
must be able to rapidly launch new buildings without the sometimes long delays required for
City review. For this reason HP has developed a complete plan, including all required details,
to bring the six building complex through the complete City review process . When
approved, the site plan will meet all the requirements for a Site Specific Development Plan.
Through achieving approval now, HP will be able to rapidly break ground on new buildings
in the future while still meeting City guidelines.
2
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