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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 12/05/2006 - SECOND READING OF ORDINANCE NO. 188, 2006, AUTHOR ITEM NUMBER: 11 AGENDA ITEM SUMMARY DATE: December5, 2006 FORT COLLINS CITY COUNCIL STAFF: Helen Matson Lindsay Kuntz Matt Baker SUBJECT Second Reading of Ordinance No. 188, 2006, Authorizing the Acceptance of a Donation of.901 Acres of Real Property from Calvin C. and Lois Johnson and Appropriating Unanticipated Revenue in the Capital Project Fund—Timberline Road Widening Project 305-23270. RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. EXECUTIVE SUMMARY This Ordinance, unanimously adopted on First Reading on November 21, 2006, authorizes the acceptance of a donation of property located just south of Spring Creek on the westerly side of Timberline Road, owned by Calvin and Lois Johnson. This donation is part of an agreement negotiated by City staff to complete the Timberline Road Widening Project. ITEM NUMBER: 12 AGENDA ITEM SUMMARY DATE: November 21, 2006 FORT COLLINS CITY COUNCIL STAFF: Helen Matson Lindsay Kuntz Matt Baker SUBJECT ( ' t ) V y First Reading of Ordinance No. 188,2006, Authorizing the Acceptance of a Donation of.901 Acres of Real Property from Calvin C. and Lois Johnson and Appropriating Unanticipated Revenue in the Capital Project Fund—Timberline Road Widening Project 305-23270. RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. FINANCIAL IMPACT The value of the donated proCas oate s' raisal dated August 10, 2006 by Bonnie D. Roerig, MAI, whit evious a raisal dated July 22, 2005 that was used during the negotiation pr Theo ' appraisal and updated appraisal has been reviewed and approved by staff. The value of the donation is $247,284. The Street Oversizing Department will be responsible for maintenance of the donated property until Timberline Road is widened to the ultimate design as per the Building on Basic("BOB") Tax. EXECUTIVE SUMMARY The Timberline Road Widening Project required the fee simple acquisition of.464 acres and various easements on a 1.365 acre property located just south of Spring Creek on the westerly side of Timberline Road, which was owned by Calvin and Lois Johnson. These interests were to be used for the interim construction of the Timberline Road improvements. City staff successfully negotiated and acquired the nr 'nter for ro' integral part of the agreement was that the Johnsons woulapproximately ten years whey f Fo cons cts the ultimate improvements to Timberline Road. BACKGROUND Ordinance No. 090,2005,which created the Timberline and Prospect Special Improvement District No. 94 and provided for the construction of improvements, required the fee simple acquisition of property, as well as various easements from numerous properties located at the intersection of November 21, 2006 -2- Item No. 12 Prospect and Timberline Roads and also on Timberline Road between Prospect Road and Drake Road. The 1.365 acre property located just south of Spring Creek on the westerly side of Timberline Road was owned by Calvin and Lois Johnson. The project required that the City purchase 20,212 square feet in fee simple, as wel ,3 r ' ge ement and a 1,375 square foot slope easement. These interest ere t used r e i struction of the Timberline Road improvements. An appraiser d rmine a fai a value the interests needed for the project. The appraisal indicated the val e 1 s ated t $6.33 per square foot. Since the City's project would damage the use of the improvements as they related to the owners' business, the appraisal also recommended the owners be compensated for the value of the improvements which included a large silo building,residential house, and small garage. The appraisal concluded that the compensation for the interests to be acquired by the City was $383,425. Staff negotiated with the Johnsons and was able to reach a successful agreement that includes the City's purchase of the interests needed for the current project, at the appraised value, and also includes the donation of the remainder of the Johnson property to the City. In approximately ten years, the City will construct the ultimate improvements to Timberline Road, which will require a total purchase of this property. During negotiations, a major concern to the Johnsons was their use of the remaining property and with the knowledge of the future project,the Johnsons requested that the City accept the donation of the remaining.901 acres at this time. The Johnsons agreed to convey the required property interests to the City at the appraised value. The appraiser that prepared th my 2 appr al ro a p-to-date value for the remaining .901 acres to be donated to the ity. Th updat praisal, ed August 10, 2006, estimated the market value to be $7.00 per sq ot. ' g pprais Inc of$7.00 per square foot, the value of the remaining property is $247,284. A breakdown follows: 1.365 Acres = 59,459 Square Feet .901 Acres= 39,257 Square Feet Total Land Area Prior to Acquisition: 59,459 sf Fee Simple Purchase by City: - 20.212 sf Remainder Property Including Permanent Easements: 39,247 sf (The Johnsons were paid 50% of value for required easements at closing and prior to donation) Less Drainage Easement Acquired: 7,310 sf Less Slope Easement Acquired: 1.375 sf Total Area of Purchased EasJY 8.685 sf Remainder owned in Fee Sim by J ons: 30,562 sf November 21, 2006 -3- Item No. 12 Value of donation to City: 30,562 sf x $7.00= $213,934 8,685 sf x $3.84* = 3350 Donation Total: $247,284 *At the closing for the COOPPrtY,Ythnsons3wer :paid 50% of the appraised value for easement acquisitions. Therefore,the remainder value of the easement sites is included in the donation value. The price per square foot is increased to $7.00, per the updated appraisal, and the price paid for the easements is deducted to get the additional donation amount. ATTACHMENTS 1. Location Map COPY ORDINANCE NO. 188, 2006 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE ACCEPTANCE OF A DONATION OF .901 ACRES OF REAL PROPERTY FROM CALVIN C. AND LOIS JOHNSON AND APPROPRIATING UNANTICIPATED REVENUE IN THE CAPITAL PROJECT FUND —TIMBERLINE ROAD WIDENING PROJECT 305-23270 WHEREAS, the City of Fort Collins ("City") constructed the Timberline Road Widening Project ("Project") to widen Timberline Road and improve the intersection of Timberline and Prospect Roads as per Ordinance 90, 2005 which created the Timberline and Prospect Special Improvement District No.94 and provided for the construction of improvements therein; and WHEREAS, one of the affected parcels of land was owned by Calvin C. and Lois Johnson (the "Johnsons"), which is located on the west side Timberline Road and just north of Spring Creek(the"Johnson Property"), as described in Exhibit "A", attached hereto; and WHEREAS, on July 14, 2006, the City purchased .464 acres of the Johnson Property that was required for the construction of the Project and is described in Exhibit "B", attached hereto; and WHEREAS, the Johnsons wish to donate the remaining .901 acres of real property ("Donated Property") to the City, as described in Exhibit "C", attached hereto; and WHEREAS, the estimated fair market value of the Donated Property is $247,284, based on an appraisal acquired by the City for the Project; and WHEREAS, if the Donated Property is not accepted by the City prior to the completion of the planned improvements to Timberline Road, staff has determined that the City will likely need to acquire additional property interests from the Johnsons, most likely the entire Donated Property, when the ultimate improvement project of Timberline Road is constructed in approximately ten years; and WHEREAS, staff has determined that the acceptance of the Donated Property now will likely result in a cost savings to the City when the ultimate improvement project for Timberline Road is constructed; and WHEREAS, Article V, Section 9 of the Charter of the City of Fort Collins 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 then current estimate of actual and anticipated revenues to be received during the fiscal year; and WHEREAS, City staff has determined that the appropriation of the donated value of the Donated Property, as described herein, will not cause the total amount appropriated in the relevant funds to exceed the current estimate of actual and anticipated revenues to be received in that fund during the fiscal year; and WHEREAS, it is the desire of the Council to authorize the acceptance of the donation of the Donated Property from the Johnson and to appropriate $247,284 of unanticipated revenue in the form of a donation of land in the Street Oversizing Fund. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby approves and authorizes the acceptance by the Mayor of a deed of conveyance of the Donated Property. Section 2. That there is hereby appropriated for expenditure from unanticipated revenue in the form of a donation of land to the Street Oversizing Fund the sum of Two Hundred Forty Seven Thousand Two Hundred Eighty Four Dollars ($247,284.00). Introduced, considered favorably on first reading, and ordered published this 21st day of November, A.D. 2006, and to be presented for final passage on the 5th day of December, A.D. 2006. AMayor , ATTEST: V).�a _A City Clerk Passed and adopted on final reading on the 5th day of December, A.D. 2006. Mayor ATTEST: City Clerk