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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 �ml�Ill�s �F 9R1 t •4 tt i L: . It µ� !•4 ihI�I�bTw.: Ili �I �l ti. " it � A ' it c.. + , NNINGIDEER I ail IARA LkK , , tii fi i yld T nXdJ4� I I REAg� I j U •E it PER '.�' � • • ERY •N E PATIO Lit 421, F � EMENT> E ON ENT L , Ir � fi I t .I G t: I• ' ! kl �' y,. 1 ti " ' AN B• PR PER,TY x .. p 'Ffi d k17 I R• ME AL � µ � S; ry�`I��`S'I'�`II ill r a. ,oil it b�'',�� i lNt, it � ii�41f ii4i a " itj ,nw,11 . Yi Legend N �cr��rran carte, 1,600 n Natural Areas Boundary 0 400 800 ,V .o:•.�:;'fn.ma�a. Feet 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 ♦ . . At Field 1 ;Approximately 34. 9 acres ' IN IN i�" ■ IN IN IN IN ♦�` j IN .,� IN IS i` IN IN IIN NIN IN ♦ i ■ �1�1 IN IN IN IN Field 2 . ■ Approximately 15 . 5 acres Id : : • . . s. • ♦ ■ s Field 3 t Approximately 25 . 5 acre I ♦ ■ ha Field 4 a •. . . . . . . . . . . . .. , Approximately 18 . 3 acres 44 -Oak 4 �. . ♦ ■ ■ ■ . . � MAY . I � .. . may. • ■ ■ ■ ■ ■ ■ ■ ■ r • ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ - ■ yam+ in : Field 5 : ' � . � „"y ' i1 L :, P OL Approximately 16 . 70, acresIN -�, R, 0 It �' W •^4 _ `pia ■ • A [+^. ` " � N� . 3 : art /� t ` �� .;.�y7 m��•kp ` . � y, r 1 � c yg - 760 380 0 760 Feet