HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 07/06/2010 - SECOND READING OF ORDINANCE NO. 078, 2010, AMENDIN DATE: July 6, 2010 SUMMARYAGENDA ITEM
STAFF: Helen Matson _
Kayla Ballard
T COLLINS CITY COUNCIL
Second 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
that the City charges on its rental properties. This Ordinance, unanimously adopted on First Reading on June 15,
2010,amends Ordinance No.086,2009,to reduce the monthly rentfrom$19,200/yearto$15,600/yearto retain tenant
residency on a continuing basis.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on Second Reading.
ATTACHMENTS
1. Copy of First Reading Agenda Item Summary-June 15, 2010
(w/o attachments)
ATTACHMENT 1
DATE: June 15, 2010
STAFF: Helen Matson _
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 rl_= 17\ r,
The City has owned and leased the property located at 3620II'echter Road since 2002. This property is the smallest
in acreage of the three developed horse pro&ri es that,th!e City leases; yet, it has one of the highest monthly rents
that the 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 a single-family dwelling,
a three car detached garage, two outbuildings and horse pastureland.
'hold � � .
One of the original goals of the Land:Bank Program was to �and forLa�mintmum of five years before possibly
developing the land. However, due to(the economic downturn the City will continue holding and leasing the property
� �\ i- i if
until the market becomes stable. Leasing the property during this time generates revenue for the program,eliminates
ground maintenance and discourages vandalism m 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 IMPACTSI fir- /7
Rent collected from this lease will result in at least$15,600 in unanticipate1revenue annually to the Advance Planning
Affordable Housing Program. Tenanfwil�pJy✓allutilit`ie and[ground maintenance.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
ATTACHMENTS
1. Ordinance No. 086, 2009 0 \V/
2. Location map
ORDNANCE NO. 078, 2010
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING ORDNANCE 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
1 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 6 da, of July, A.D. 2010.
Mayo '
ATTEST:
2FOLJ�L VU 6 A. A.4
City Clerk
Passed and adopted on final reading on the 6th day of July, A.D. 2010.
Mayor
ATTEST:
City Clerk