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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 04/06/2010 - SECOND READING OF ORDINANCE NO. 034, 2010, ADOPTIN DATE: April 6, 2010 A STAFF: Steve Dush _ Steve Roy Second Reading of Ordinance No. 034, 2010, Adopting a Development Agreement Extending the Term of Vested Property Rights for Rigden Farms, LLC and Rigden Development, LLC for Phases II and III of Rigden Farm Filing Six Final Plan for Ten Years. EXECUTIVE SUMMARY This Ordinance, adopted on March 16, 2010, by a vote of 5-1 (Nays: Ohlson) adopts a Development Agreement Extending the Term of Vested Rights for Rigden Farm Filing Six, and is part of a larger settlement of a dispute between the Rigden Farm developers and the City. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. Copy of First Reading Agenda Item Summary- March 16, 2010 (w/o attachments) ATTACHMENT 1 DATE: March 16, 2010 STAFF: Steve Dush Steve Roy First Reading of Ordinance No. 034, 2010, Adopting a Development Agreement Extending the Term of Vested Property Rights for Rigden Farms, LLC and Rigden Development, LLC for Phases II and III of Rigden Farm Filing Six Final Plan for Ten Years. EXECUTIVE SUMMARY This proposed Ordinance adopting a Del,elopment�greement Extending the Term of Vested Rights for Rigden Farm Filing Six, is part of a larger settlement of-a,dispute between the Rigden Farm developers and the City. BACKGROUND / DISCUSSION Litigation has arisen between Rigden Farms, LLC, Rigden Development, LLC (hereafter referred to as"Rigden")and the City regarding the development of Rigden Farm Filing Six in particular and other portions of Rigden Farm in general. In an effort to resolve the dispute behind the litigation, Rigden and the City engaged in mediation, and a tentative settlement agreement has been reached. One of the elements of settlement is the establishment of an extended vested right for Rigden Farm,,to°run for tenryears, essentially until April 30, 2020. 1 tl )� TI )) 'N, Rigden contends that the length of time�hat it has taken for the-public infrastructure to be constructed around Rigden Farm allegedly caused Rigden to be 'subject to thgent recession and has made it difficult, if not impossible for Rigden to meaningfully market the property at the present time. Therefore, Rigden has sought an extension of the vested right that it had for the property prior to its expiration so that it can engage in development and/or marketing efforts. Section 2.2.11(D)(3)of the Land Use Code establishes a three-year term of vested right, but also authorizes the City Council to adopta development agreement which would extend theterm of vested right,provided thatthe development agreement is adopted by ordinance of the City Council as a legislative act and also provided that the City Council determines that itwill likely take more than three years to complete all engineering improvements forthe development, and only if warranted in light of all relevant circumstances including, but not limited to, the size and phasing of the development, economic cycles, and market conditions. Given the current economic cycle and market condition, Rigden is asking the City Council to make Phis finding and auth'orizdlthe to /year vesting. While City staff disputes Rigden's contention that it has breached any legal duty to Rigden or that Rigden has suffered economic harm as a result of any acts or omissions of the City, staff believesJt6ftF a extension of the vesting period for Rigden Farm is reasonable under the circumstances, especially*Az! w of the size oUhe development, the level of Rigden's investment in the property and the recent economic downturn. The attached Ordinance would make the necessary finding and would approve a"Development Agreement Regarding Vested Rights"which would essentially afford Rigden until April 30,2020,to undertake and complete the development in accordance with the approved site specific development plan and engineering drawings. FINANCIAL IMPACT The financial impact of granting the extended'speriod of'vested rights would be negligible upon the City. Even though the financial impact of the extension of vested rights is negligible, there is a financial impact in the amount of approximately$300,000 for the settlemen`\ t genekJI March 16, 2010 -2- ITEM 24 SUSTAINABILITY: ECONOMIC, ENVIRONMENTAL AND SOCIAL IMPACTS The economic impact of the extension of vested rights is negligible. There are no identifiable environmental impacts to the extension of vested rights and the extension would have a positive social impact because it would help Rigden through some difficult economic times in the present recession. STAFF RECOMMENDATION Staff recommends adoption of this Ordinance on First Reading. ORDINANCE NO. 034, 2010 OF THE COUNCIL OF THE CITY OF FORT COLLINS ADOPTING A DEVELOPMENT AGREEMENT EXTENDING THE TERM OF VESTED PROPERTY RIGHTS FOR RIGDEN FARMS, LLC AND RIGDEN DEVELOPMENT, LLC FOR PHASES II AND III OF RIGDEN FARM FILING SIX FINAL PLAN FOR TEN YEARS WHEREAS, Section 2.2.1l(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 that such development agreement is adopted by ordinance of the Council as a legislative act subject to referendum and provided that the City Council determines that it will likely take more than three years to complete all engineering improvements for the development, and only if warranted in light of all relevant circumstances, including but not limited to,the size and phasing of the development, economic cycles, and market conditions; and WHEREAS,Section 24-68-104 of the Colorado Revised Statutes also provides that any such development agreement extending the term of vested property rights shall be adopted as a legislative act by ordinance of the City Council; and WHEREAS,Rigden Farms,LLC,Rigden Development,LLC,(hereafter collectively referred to as "Rigden") have filed suit against the City in connection with a dispute involving the development of Rigden Farm Filing Six, and the entire Rigden Farm development in general; and WHEREAS, Rigden and the City have attempted to resolve their differences through mediation and have tentatively reached an agreement, which agreement is contingent upon City Council approval of a ten-year extension of a vested right for certain phases of the Rigden Farm development, which would give Rigden until April 30,2020 to develop and/or market the property; and WHEREAS, the City Council finds that it will likely take more than the ordinary vesting period to complete all engineering improvements for the development and that in light of all relevant circumstances, including but not limited to, the size and phasing of the development, economic cycles,and market conditions in extremely recessionary times,it is appropriate that the Rigden Farm Filing Six be vested for a period of ten years from the effective date of a development agreement extending the term of vested property right; and WHEREAS, the City Council has determined that the extension of the term of vested property right for a period of ten years from the effective date of such development agreement is in the best interests of the City. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that, pursuant to Section 2.2.1l(D)(3) of the Land Use Code, Phases II and III of the Rigden Farm Filing Six Final Plan shall be granted a ten-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, considered favorably on first reading, and ordered published this 16th day of March, A.D. 2010, and to be presented for final passage on the,6t�iZlay of April, A.D. 20 MayorU ATTEST: 4U4 City Clerk Passed and adopted on final reading on the 6th day of April, A.D. 2010. Mayor ATTEST: City Clerk