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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 design pC� � C� � CI � � 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 MWN pop - °°1 un1111\� 100 -- - ��IIIII � • \�Ilk"I \ IMMEMN WiwiIN I\. ON JUM \� MAIMAk iiiiii III IS 1111111111111 0 r r I ®A le CE L tr (S /i- P� yAtfIfiry TECH PfiJEK , IS - yew- VESTING �EOvFST ,(7A E HIG AY 68) ...i. , ''..7 -O / • ~L"a I :: ,L :n+L am a �.w. 1� n i -i 1 R./IJEf • � • S USE4 j � 0.]F • pp oxFiw: { Lea l MRemo � -•• • • 'I• • f • • • • I.I.150=1 FAWN �/ m 1I1•T' •5�,1 OV{QF.` 1 I • ` , ,,i l I1 mrr.•� i p4. 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