The URL can be used to link to this page

Home My WebLink AboutCOUNCIL - AGENDA ITEM - 06/15/2010 - FIRST READING OF ORDINANCE NO. 078, 2010, AMENDING DATE: June 15, 2010 AGENDA ITE M SUMMARY STAFF: Helen Matson FORT COLLINS CITY COUNCIL Kayla Ballard First Reading of Ordinance No. 078, 2010, Amending Ordinance No. 086, 2009, to Adjust the Annual Lease Rate of City-Owned Property at 3620 Kechter Road. EXECUTIVE SUMMARY The City has owned and leased the property located at 3620 Kechter Road since 2002. This property is the smallest in acreage of the three developed horse properties that the City leases; yet, it has one of the highest monthly rents thatthe City charges on its rental properties. This Ordinance amends Ordinance No.086,2009,to reduce the monthly rent from $19,200/year to$15,600/year to retain tenant residency on a continuing basis. BACKGROUND / DISCUSSION The City acquired this property in 2002 as part of the Affordable Housing Land Bank Program. The property is composed of approximately 5 acres of development land. Currently,this entire site consists of single-family dwelling, a three car detached garage, two outbuildings and horse pastureland. One of the original goals of the Land Bank Program was to hold land for a minimum of five years before possibly developing the land. However,due to the economic downturn, the City will continue holding and leasing the property until the market becomes stable. Leasing the property during this time generates revenue for the program,eliminates ground maintenance and discourages vandalism in empty structures. During interim,the City will lease the residence as a horse property with acreage. The lease rate has not changed since the City began leasing the horse properties. This has made it difficult to retain a tenant at the current rent. Reducing the monthly rent will make it easier to keep the property occupied. In addition, having the property occupied will eliminate costly ground maintenance and will discourage vandalism in empty structures. FINANCIAL / ECONOMIC IMPACTS Rent collected from this lease will result in at least$15,600 in unanticipated revenue annually to the Advance Planning Affordable Housing Program. Tenant will pay all utilities and ground maintenance. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. ATTACHMENTS 1. Ordinance No. 086, 2009 2. Location map ATTACHMENT ORDINANCE NO. 086, 2009 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE LEASE OF CITY-OWNED PROPERTY AT 3620 KECHTER ROAD FOR UP TO FIVE YEARS WHEREAS, in April 2001, the City Council adopted Ordinance No. 048, 2001, amending Chapter 23 of the City Code by the addition of a new Article XI entitled "Land Banking"; and WHEREAS, Ordinance No. 048, 2001 contains a determination made by the City Council that the acquisition of real property in order to ensure the property will be available for future development to provide housing for extremely low and very low income families would be in the best interests of the citizens of the city; and WHEREAS, Ordinance No. 048, 2001 further stated that the proposed program for the banking of real property for the purpose of assisting housing providers in providing housing for extremely low and very low income families would not negatively impact the local real estate market, due to the anticipated volume of property purchases the program would entail; and WHEREAS, in April, 2002, the City acquired the property at 3620 Kechter Road, Fort Collins (the "Property") as part of the land banking program established pursuant to Ordinance No. 048, 2001; and WHEREAS, the City has leased the Property since 2002 and desires to continue leasing the Property for a period of up to five years at an annual rate of at least$19,200; and WHEREAS, under Section 23-111 of the City Code, the City Council is authorized to dispose of any and all interests in real property owned in the name of the City, provided that the City Council first finds, by ordinance, that such 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 City Council hereby finds that leasing the property at 3620 Kechter Road as provided herein is in the best interests of the City. Section 2. That the City Manager is hereby authorized to execute a negotiated Lease Agreement for the Property consistent with the terms of this Ordinance, together with such additional terms and conditions as the City Manager, in consultation with the City Attorney, deems necessary and appropriate to protect the interests of the City or to effectuate the purposes of this Ordinance, including, but not limited to, any necessary changes to the description of the Property, so long as such changes do not materially increase the size or change the character of the property to be leased. Introduced, considered favorably on first reading, and ordered published this 18th day of August, A.D. 2009, and to be presented for final passage on the 1st day of September, A.D. 2009. Mayor ATTEST: - 'I.V �� I - City Clerk Passed and adopted on final reading on the 1 st day of Septe er, A.D. 2009. Mayo ATTEST: City Clerk Attachment 2 ATTACHMENT 2 3620 Kechter Road Lease Amendment Location Map t —ROOK EEK-D 1 �I I I FOSSIL RIDGE HIGH SCHOOL I ��— ,. .. _. d OREM My i _. _.. ....._..SABER-........,. CAT p \ . R - - L -- _M SIS E ® 3620 Kechter Road N ORDINANCE NO. 078, 2010 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING ORDINANCE NO. 086, 2009, TO ADJUST THE ANNUAL LEASE RATE OF CITY-OWNED PROPERTY AT 3620 KECHTER ROAD WHEREAS, in April 2001, the City Council adopted Ordinance No. 048, 2001, amending Chapter 23 of the City Code by the addition of a new Article XI entitled "Land Banking"; and WHEREAS, Ordinance No. 048, 2001, contains a determination made by the City Council that the acquisition of real property in order to ensure the property will be available for future development to provide housing for extremely low and very low income families would be in the best interests of the citizens of the City; and WHEREAS, Ordinance No.'048, 2001, further stated that the proposed program for the banking of real property for the purpose of assisting housing providers in providing housing for extremely low and very, low income families would not negatively impact the local real estate market, due to the anticipated volume of property purchases the program would entail; and WHEREAS, in April, 2002, the City acquired the property at 3620 Kechter Road, Fort Collins(the"Property")as part of the land banking program established pursuant to Ordinance No. 048, 2001; and WHEREAS, on September 1,2009,the City Council adopted on second reading Ordinance No. 086, 2009, (the "2009 Ordinance"), which authorized the lease of the Property for up to five years at an annual rate of at least$19,200; and WHEREAS, the City has had difficulty leasing the Property at the lease rated stated in the 2009 Ordinance; and WHEREAS, the City Council believes it is in the best interests of the City to amend the annual rate to a minimum of $15,600 to increase the likelihood of retaining a tenant for at least one five-year term. NOW, THEREFORE BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that the fifth clause of Ordinance No. 086, 2009 is hereby amended to read as follows: WHEREAS, the City has leased the Property since 2002 and desires to continue leasing the Property for a period of up to five years at an annual rate of at least $15,600. Introduced, considered favorably on first reading, and ordered published this 15th day of June, A.D. 2010, and to be presented for final passage on the 6th day of July, A.D. 2010. Mayor ATTEST: City Clerk Passed and adopted on final reading on the 6th day of July, A.D. 2010. Mayor ATTEST: City Clerk