HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 03/20/2007 - FIRST READING OF ORDINANCE NO. 049, 2007, AUTHORIZ ITEM NUMBER: 18
AGENDA ITEM SUMMARY DATE: March 20, 2007
FORT COLLINS CITY COUNCIL STAFF: Daylan Figgs
SUBJECT
First Reading of Ordinance No. 049, 2007, Authorizing the Lease of a Portion of the Resource
Recovery Farm for Agricultural Use.
RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
The Land Conservation and Stewardship Board unanimously recommended the adoption of the
Ordinance on February 14, 2007.
FINANCIAL IMPACT
The Lessee will pay an annual rate of $65 per acre for approximately 110 acres of crop land.
Additionally the Lessee will be responsible for controlling noxious and toxic plants found within
the leased area. The Lessee will also be responsible for costs associated with producing the crop
including all costs of tillage, seeds, seeding, fertilizer, irrigation management, weed management,
and harvesting. The City will provide 3.6 shares of Lake Canal water, currently owned by the
Natural Areas Program, and additional water, if needed, to produce the crop.
EXECUTIVE SUMMARY
This Ordinance authorizes an agricultural lease on approximately 110 acres located within the
Resource Recovery Farm for a period of time starting January 1, 2007 and ending December 31,
2011.
BACKGROUND
The Resource Recovery Farm (RRF), located near Prospect and Interstate I-25, totals
approximately 150 acres. The site was purchased from the City of Fort Collins Utilities
Department in 2003 in an effort to maintain open space along the I-25 corridor. Prior to
acquisition by the Natural Areas Program, the RRF was operated by the City's Utilities
Department as a wastewater biosolids management facility. The agricultural land surrounding
the facility was used for land application of the biosolids.
March 20, 2007 -2- Item No. 18
Of the 150 acres, approximately 110 acres are former agriculture lands that have been idle since
the Natural Areas purchase. This lease will allow a tenant to farm 110 acres of irrigated
agriculture land in either hay or row crop. Irrigation water will be provided by shares of Lake
Canal water owned by the Natural Areas Program, ground water from wells located on adjacent
city owned property, and/or water leased from the City of Fort Collins Utility Department.
Currently, Natural Areas staff are performing weed control and other maintenance work on the
agricultural land totaling approximately$2900 dollars annually. This lease will transfer much of
that responsibility to the farming tenant.
The built infrastructure associated with the wastewater biosolids management facility remains on
the RRF. The Natural Areas Program is exploring other uses for the building site; however, to
date, future use and development of the property by the City remains uncertain. As a result,
grassland restoration of the former agriculture fields is a low priority for the Natural Areas.
Leasing the property for agriculture production reduces management and maintenance costs for
the Natural Areas program and allows time to explore management and use options for the RRF.
ATTACHMENTS
1. Resource Recovery Farm Area.
2. Excerpt of Minutes from the February 14, 2007 meeting of the Land Conservation and
Stewardship Board.
ATTACHMENT 1
Resource Recovery Farm Area
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ATTACHMENT 2
Land Conservation & Stewardship Board
February 14, 2006
Page 7 of 8
Resourc ea —Mark Sears
ears ma a re erence to t e a ac ed map in the LCSB packet.
• Sears: Resource Recovery Farm is located near Prospect and Interstate 1-25, and
totals approximately 150 acres. The site was purchased from the City of Fort Collins
Utilities department in 2003 in an effort to maintain open space along the 1-25
corridor.
Of the 150 acres, approximately 110 acres are former agriculture lands that have been
idle since the Natural Areas purchase. We've asked for proposals, and today we
actually received two proposals from two different farmers to lease the property.
Leasing the property back to a farmer for agriculture production reduces management
and maintenance costs for the Natural Areas program and allows time to explore
management and use options for the Resource Recovery Farm.
We are asking that the Board recommend to City Council to approve an ordinance
granting an agriculture lease of 110 acres located on Resource Recovery Farm.
• Ting: Are there any stipulations in the lease?
• Sears: It will be in the lease that they will have to use approved pesticides and
herbicides. Depending on which offer we take, there will be some things that we'll
be responsible for and some cost that they'll be responsible for, especially in the first
year as we transition from ground that has a lot of weeds on it, to hopefully by the
end of this year, a nice looking farm land.
• Bertschy: What about water?
• Sears: Irrigation water will be provided by shares of Lake Canal water that transferred
to the Natural Areas program with the property, ground water from wells located on
adjacent city owned property, and/or water leased from the City of Fort Collins
Utility department.
• Snyder: Will the lease include the shed?
• Sears: No. It will include only the fields.
• Snyder: Who currently uses the shed?
• Sears: We have some equipment and supplies in the shed and various City
departments are stock piling topsoil in the shed.
• Snyder: I feel the shed is valuable, if City departments are not utilizing it. I think
there can be some income potential from that, if used for covered storage.
• Sears: We tried to lease the shed, and in the past the problem we faced is compliance
with building and zoning. We would have to bring the road up to standards, which
stops any lease.
• Theobold: The uses in Running Deer Natural Areas are they relatively compatible
with adjacent property?
• Sears: The portions of Running Deer that you can see on the map are gravel mines.
The gravel mining company, Lafarge, is in the process of restoring that area, but due
to the snow pack, they are delayed. They should finish restoration this year and then
it will be three or four years before we open it to the public.
Vicky McLane made a motion.
The Land Conservation and Stewardship Board recommends to City Council to approve
an ordinance granting an agriculture lease of 110 acres located on Resource Recovery
Farm. Second by Michelle Brown. It was unanimously approved by all.
ORDINANCE NO. 049, 2007
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE LEASE OF A PORTION OF
THE RESOURCE RECOVERY FARM
FOR AGRICULTURAL USE
WHEREAS,the City of Fort Collins owns certain real property approximately 150 acres in
size(the"Resource Recovery Farm"), which was originally acquired for Utilities purposes but has
since been transferred to the City's Natural Areas Program; and
WHEREAS, the Natural Areas Program has not yet finalized its plans for the Resource
Recovery Farm; and
WHEREAS,pending development of those plans,the City continues to expend funds on an
ongoing basis in order to control weeds and otherwise maintain the Resource Recovery Farm; and
WHEREAS, in order to provide for appropriate use of the Resource Recovery Farm prior
to further City actions, and in order to reduce the City's ongoing costs of ownership, City staff has
proposed that the City lease approximately 100 acres of the Resource Recovery Farm as more
particularly described on Exhibit A, attached hereto and incorporated herein by this reference(the
"Lease Area"); and
WHEREAS, City staff has proposed that the Lease Area be leased at an annual rate of$65
per acre, and that the lease further allow for the use of 3.6 shares of Lake Canal water owned by the
City for the Natural Areas Program and historically used to irrigate the Resource Recovery Farm;
and
WHEREAS, staff has further proposed that the lessee of the Lease Area be responsible for
controlling noxious and toxic plants in the Lease Area and for all costs associated with the lessee's
use of the Lease Area, including but not limited to costs of crop production; and
WHEREAS, staff has proposed that the Lease Area be leased on an annual basis for a
possible total lease period of five years; and
WHEREAS, staff has negotiated terms and conditions which have been incorporated into
a proposed lease agreement, a copy of which is dated March 14,2007, and is on file in the office of
the City Clerk and available for inspection; and
WHEREAS, the Land Conservation and Stewardship Board, at its regular meeting of
February 14, 2007, unanimously recommended that the Council authorize the proposed lease; and
WHEREAS, Section 23-114 of the City Code provides that the City Council is authorized
to lease any and all interests it may have in non-utility real property owned by the City, provided
the Council first finds by ordinance that the lease of that real property interest is for the benefit of
the citizens of Fort Collins and will be 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 the lease of the Lease Area as
described above is for the benefit of the citizens of Fort Collins and is in the best interests of the City
of Fort Collins.
Section 2. That the Mayor is hereby authorized to execute such lease documents and
other documents as may be necessary to carry out the terms of this Ordinance, together with such
terms and conditions as the City Manager,in consultation with the City Attorney, determines to be
necessary or appropriate to protect the interests of the City, including any necessary corrections to
the legal descriptions shown thereon that do not result in a material increase or change in character
of the intended lease property.
Introduced, considered favorably on first reading, and ordered published this 20th day of
March, A.D. 2007, and to be presented for final passage on the 17th day of April, A.D. 2007.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading on the 17th day of April, A.D. 2007.
Mayor
ATTEST:
City Clerk
Exhibit " A " - Resource Recovery Farm Lease Area
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