HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 02/21/2006 - FIRST READING OF ORDINANCE NO. 040, 2006, AUTHORIZ ITEM NUMBER: 34
AGENDA ITEM SUMMARY DATE: February 21, 2006
FORT COLLINS CITY COUNCIL STAFF: John Stokes
SUBJECT
First Reading of Ordinance No.040,2006,Authorizing the Conveyance of a Conservation Easement
on City Natural Area Property(Round Butte Ranch Phase 1)to Larimer County and Authorizing a
Related Grant Agreement with the Board of the Great Outdoors Colorado Trust Fund.
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RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading. At its February 8th meeting, the
Land Conservation and Stewardship Board moved unanimously to recommend the project to City
Council.
FINANCIAL IMPACT
City acquisition for 640-acre first phase: $ 480,000
City grant match(Natural Areas): 81,600
Great Outdoors Colorado grant: (216,000)
Resale of fee interest to conservation buyer: (256,000) est.
Transaction costs: 10,400 est.
Final Cost to City: $ 100,000
EXECUTIVE SUMMARY
This Ordinance authorizes the conveyance of a 640-acre conservation easement on Round Butte
Ranch, Phase I, from the City's Natural Area system to Larimer County. The City will receive a
$216,000 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 a single five-acre building envelope as well as continued ranching and other
compatible activities.
BACKGROUND
Over the last two 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(MTP)project.
The core of the project is represented by two properties,the Soapstone Prairie Natural Area(owned
February 21, 2006 -2- Item No. 34
by the City) and the Red Mountain Ranch (owned by the County). In spring 2004, the City
purchased Soapstone. In fall of 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 also will be 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 the Soapstone Ranch, and located at the northern end of County Road 15,there
are several properties that were not included in the first phase of the MTP project. Natural Areas
is striving to conserve these properties for two important reasons:
1. They represent a significant component of the spectacular viewshed from the higher
elevation portions of Soapstone; and,
2. They surround the terminus of County Road 15, the most desirable entrance to
Soapstone.
In February 2005, the Natural Areas Program entered into an option to purchase the 1,360-acre
Round Butte Ranch. The Program recently exercised this option and plans to close on February 27th
for $1,020,000 (or $750 per acre). The intention of the Program is to resell the property to a
conservation-minded buyer and to retain a conservation easement. Because the Natural Areas
Program already has made substantial investments in this area,a Great Outdoors Colorado grant was
pursued to defray the cost of the retained conservation easement. The Program recently was notified
that the first of two grant applications for a 640-acre portion of the property was successful in the
amount of$216,000. The City's match to this grant will be$81,600. Thus,the ultimate cost to the
City of conserving this 640-acre portion of the property will be, after its resale and associated
expenses,approximately$100,000(or$156 per acre). A second grant application will be submitted
for the remaining 720 acres.
As a condition of the grant agreement, the Program is required to convey a conservation easement
on the Round Butte Ranch to another entity during the period of time that the City continues to own
the property(i.e., prior to a sale to a conservation-minded buyer). Thus, the Program is proposing
to convey a conservation easement to Larimer County on the initial 640-acre portion of the property.
The conservation easement recognizes and protects the natural and scenic values of the property,
and allows any future owner to build a home and related structures within a building envelope of
not greater than 5 acres. Other primary activities that may be conducted include ranching and
hunting.
Latimer County has indicated its willingness to accept the conservation easement, and also its
willingness to convey the easement back to the City when the underlying fee interest has been 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.
February 21, 2006 -3- Item No. 34
ATTACHMENTS
1. Round Butte Ranch Location Map
2. Round Butte Ranch Phase 1 &2
3. Draft Minutes from the February 8,2006 meeting ofthe Land Conservation and Stewardship
Board
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State Property MiICS
ATTACHMENT
DRAFT
Excerpt from Minutes of Land Conservation & Stewardship Board
February 8, 2006
Real Estate Transaction
Stokes said that when we (Natural Areas Program)buy land we don'-x to Hto go to City Council.
However, when we are conveying property interest we have to gG, uncil approval.
We'll bring everything to you, but I thought you might wonder, }l' e things weren't going
to Council.
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The piece of property we're talking about tonight is reltsted to'the "Mountaitt ; tPlains"project.
Using maps, Stokes outlined the details of this prop", ed transaction.
• Stokes: The more property we own and have inter e in„wil1'h'elp:us solidify thi� access. This
was the access to the ranch. There's over a hundred yeti,record of it being a public road.
• Bertshey: If we get that land and we'dp load improvementt a more attractive it will be to
development. „ :1iffl,i
• Sears: That's why we're trying to do de ls1 lve do the ro ,�thprovements.
• Stokes: $750 is very reasonable. The res ic we p : btu be$4t)0 an acre. This is remote,
short grass prairie. We'd seek the best pn t ould gFHttt we're putting on some pretty
heavy restrictions.
• Ting: GOCO requires us to plaene a conservati" easement to a 3'd party.
• Stokes: We're asking or your f;o6ommendatiot�49 Council to let us go forward with that.
Larimer County is will-ing to th
c conservation easement from us. It's exactly like what
we did for t144� ,aunty. Pad#f Reif h 4bYtfitii3i Ranch will be sold to a conservation buyer.
We'll Or" jfie hers When it's sold Larimer County will convey it back to us.
• Ber "hy. How are , ssured fihe,County would re-convey?
• Sean hey don't wantl Et's a hu `fesponsibility and there's nothing to be gained. Legacy
would "' ge us for holdl that easement.
• Stokes. W*ihgld an easem t on 15000 they want back.
• Brown: Any Bible buyets?
• Stokes: We have fgw pt5ssible.
• Stokes: It's pretty" 'grazed. We're hoping to work with a conservation buyer to put better
practices on that pike of ground. When they re-directed the spring they screwed up the
hydrology of the wetlands.
• Stanley: You could make that a condition of the sale.
• Stokes: We'd like a cooperative venture. We can help them find money.
Michelle Brown made the following motion:
The Land Conservation and Stewardship Board recommends that City Council approve the
conveyance of the 640-acre Round Butte Ranch conservation easement to Larimer County
The motion was seconded by Karyn Ting.
• McLane: Is the only reason we're doing this because Council has to do an ordinance?
• Stokes: Not the only reason. I could go to council without your recommendation. There is a
distinction between land we buy and land we convey.
• Brown: Does it make Council feel better that other people have looked at it?
• Stokes: Yes. This is a relatively simple transaction. It should be on„ iauncil's consent
calendar. s
• McLane: I want to reiterate that I'm concerned about balancp,, L'. vote in favor,but it seems
the opportunities keep coming in the regional setting while the ctiri'*- unity separator is
disappearing right before our eyes.
• Eckert: Any concerns about the easement language
• Stokes: No.
• Hudnut: There are concerns in the community ". t the regional purchases. V need to look
close around Fort Collins. This is a little bit out ther ,#s far as accessibility. Itts a relatively
small amount of money, but those add up. The idea is'* 'll sell this. I'll support it. Let's go
with what we have and continue to branch out.
• Ting: It's not by choice, but by opporttitrity.
• Stanley: I think its great. When we didthe taopaaty open space tax: 1995 we had no idea
there would be this success. I think its Mat tY Ety is taking the lead. Years from now
they'll look at this and say what a wonderful thug it`is;
• Stokes: We get about $9i"milion a year Tlkpo, those are from the County. That's one of
the reasons the Couttty Ieanai ;us to do regional and community separator projects. In my
view, that's part ne justific4Oon for spending money on these projects.
The motion carried unanimtlsly
ORDINANCE NO. 040, 2006
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE CONVEYANCE OF A CONSERVATION EASEMENT
ON CITY NATURAL AREA PROPERTY(ROUND BUTTE RANCH PHASE I)
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 Round Butte Ranch, a property 1,360 acres
in size to the south of Soapstone Prairie Natural Area and located along County Road 15; and
WHEREAS,the GOCO Board has approved a grant to the City to support the conservation
of Phase I of Round Butte Ranch, which is 640 acres in size and is more particularly described as:
All of Section 19, Township 11 North, Range 68 West of the 6th P.M., County of
Larimer, State of Colorado
(the"Phase I Property"), in the amount of$216,000, 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 February 17,
2006, 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 February 17, 2006, is on file
in the Office of the City Clerk and available for public inspection (the"Conservation Easement");
and
WHEREAS, under Section 23-111 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 of Fort Collins.
Section 2. That the Mayor is hereby authorized to execute the Grant Agreement, in
substantially the form for the same dated February 17, 2006, 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 February 17,2006, 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.
Introduced, considered favorably on first reading, and ordered published this 21 st day of
February, A.D. 2006, and to be presented for final passage on the 7th day of March, A.D. 2006.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading this 7th day of March, A.D. 2006.
Mayor
ATTEST:
City Clerk