HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 12/19/2006 - FIRST READING OF ORDINANCE NO. 205, 2006, AUTHORIZ ITEM NUMBER: 18
AGENDA ITEM SUMMARY DATE: December 19, 2006
FORT COLLINS CITY COUNCIL STAFF: Patrick Rowe
SUBJECT
First Reading of Ordinance No. 205, 2006, Authorizing the Lease of City-owned Property at 424
Pine Street for up to Twenty Years.
RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
FINANCIAL IMPACT
Facility and operating costs shall be the obligation of the Tenant.
EXECUTIVE SUMMARY
United Way of Larimer County has held a ground lease on City-owned property,located at 424 Pine
Street, since 1985. This Ordinance renews the lease for up to twenty years.
BACKGROUND
Beginning in 1985,the City entered into a ground lease with United Way of Larimer County for its
operation of a human services facility. The City did not charge a lease payment to United Way in
recognition of the important community and social services benefits derived from United Way's
operation.
The original lease has expired,and it is the desire of United Way to renew the lease for an additional
20 years time.
United Way continues to be a very important social services provider to the Fort Collins community,
and the leased property at 424 Pine Street remains integral to their operation. In addition to United
Way administration facilities, the facility at 424 Pine Street is home to numerous United Way
Agencies, including Disabled Resource Services, Neighbor to Neighbor, The Women's Resource
Center of Larimer County, and United Day Care Center.
Under the terms of the lease, the facility, constructed by United Way, will remain the property of
United Way until such time as the lease expires or is terminated by the provisions of the lease.
December 19, 2006 -2- Item No. 18
United Way will continue to be responsible for all costs incurred as a result of operating the facility.
As stated,the new lease will be for a period of 20 years,and will be terminable by either party upon
1 year's notice. During this lease term,the City will charge United Way nominal rent of five dollars
per year for lease payments.
United Way Lease Location Map
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ORDINANCE NO. 205, 2006
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE LEASE OF CITY-OWNED PROPERTY
AT 424 PINE STREET FOR UP TO TWENTY YEARS
WHEREAS, the City of Fort Collins is the owner of the property located at 424 Pine
Street, Fort Collins, Larimer County, Colorado (the"Property"); and
WHEREAS, in 1985 the City leased the Property to Larimer Community Services
Corporation, now United Way of Larimer County, Inc. ("United Way"), to be used for
construction and operation of an office building for human services agencies; and
WHEREAS, the 1985 lease has now expired, and United Way desires to continue leasing
the Property for human services purposes which will benefit the community at large; and
WHEREAS, the proposed lease agreement provides for a twenty-year lease term in
exchange for payment of nominal rent in the amount of $5.00 per year and compliance with
certain terms and conditions including restrictions on the use of the Property and an obligation to
maintain the Property; and
WHEREAS, upon termination of the new lease the building constructed by United Way
on the Property will become the property of the City; and
WHEREAS, under Section 23-114 of the Code of the City of Fort Collins, the Council is
authorized to lease any and all interests in real property owned in the name of the City, provided
that Council first finds that the lease is in the best interests of the City.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. That the Council hereby finds that leasing the Property at 424 Pine Street
under the terms listed above is in the best interests of the City of Fort Collins.
Section 2. That the City Manager is hereby authorized to execute a negotiated lease
agreement consistent with the terms of this Ordinance, together with such additional terms and
conditions as the City Manager, in consultation with the City Attorney, determines to be
necessary and appropriate to protect the interests of the City.
Introduced, considered favorably on first reading, and ordered published this 19th day of
December, A.D. 2006, and to be presented for final passage on the 16th day of January, A.D.
2007.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading on the 16th day of January, A.D. 2007.
Mayor
ATTEST:
City Clerk