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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 02/15/2011 - FIRST READING OF ORDINANCE NO. 017, 2011, AUTHORIZ DATE: February 15, 2011 AGENDA ITEM SUMMARYSTAFF: Jon Haukaas, Ken Sampley FORT COLLINS CITY COUNCIL Lindsay Kuntz First Reading of Ordinance No. 017, 2011, Authorizing the Conveyance of a Parcel of Stormwater Utility Property to PS Poudre River, LLC. EXECUTIVE SUMMARY In 2006, the City constructed the Oxbow Levee on the Cache La Poudre River to reduce flooding risk and damages to a section of the city known as the Buckingham neighborhood, located north and east of the River. The Oxbow Levee is located between Linden Street and Lincoln Avenue. The Stormwater Master Planning and Floodplain Administration Division has identified a small remnant parcel located adjacent to and east of the Oxbow Levee that is no longer needed for flood control purposes. The adjacent property owner, PS Poudre River, LLC, has expressed interest in purchasing this small parcel from the City. BACKGROUND / DISCUSSION The City purchased a tract of land along the Cache La Poudre River in 2004 as part of the Poudre River Enhancement Project. The purpose of this Project was to construct various flood control,ecological,and recreational improvements along two segments of the Poudre River in the downtown area. The Oxbow Levee (previously known as the Buckingham Levee Project)was constructed in 2006, between Linden Street and Lincoln Avenue. The Oxbow Levee reduces flooding risk and damages to a section of the city known as the Buckingham neighborhood,which is located to the north and east of the River. A Letter of Map Revision (LOMR) recognizing the change in floodplain boundaries as a result of the construction of the Oxbow Levee was approved by FEMA in December 2006. The alignment of the new levee created a small remnant parcel of land adjacent to Linden Street. The Stormwater Master Planning and Floodplain Administration Division has since determined that this small parcel of land, 0.224 acres in size, is not needed for any current or future flood control purposes. The adjacent property owner, PS Poudre River, LLC, has expressed interest in purchasing this small parcel from the City. PS Poudre River, LLC, has agreed to purchase the property at a fair market value as determined by the City's Real Estate Services Department. FINANCIAL/ ECONOMIC IMPACTS PS Poudre River, LLC has agreed to compensate the City of Fort Collins $2,500 for the small parcel of land, as well as convey an easement to the City along the easterly boundary of the Oxbow Levee for access and maintenance of the improvements at no-cost. PS Poudre River, LLC, has also agreed to convey to the City, an access easement along the boundary of its property for the purposes of accessing and maintaining the Oxbow Levee improvements. Conveyance of the remnant parcel of land will reduce City maintenance costs. PS Poudre River, LLC plans to incorporate this parcel of land as part of a proposed future development project. Conveyance of the access easement from PS Poudre River, LLC to the City along the easterly boundary of the Oxbow Levee will provide access and reduce maintenance costs. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. February 15, 2011 -2- ITEM 13 BOARD / COMMISSION RECOMMENDATION City staff presented the proposal to the Water Board on January 20, 2011. By a vote of 7-3, the Board voted to recommend the authorization to convey the remnant to PS Poudre River, LLC. The three Board members who voted against the recommendation noted concerns regarding the conveyance amount of$1,120. This value was based on data obtained by the Real Estate Services staff of similar properties. City staff completed additional research on the valuation of the property and subsequently negotiated a purchase price of$2,500. ATTACHMENTS 1. Location map 2. Water Board minutes, January 20, 2011 Attachment 1 Oxbow Levee Remnant Parcel Location Map ry REMNANT PARCEL D O BODU LE1EEInrnWAVP Buckingham Park Remnant Parcel Location Attachment 2 Excerpt from Unapproved Water Board Minutes,January 20,2011 Sale of Oxbow Levee Remnant Parcel (Presentation available on request) Water Planning and Development Manager Ken Sampley brought this topic to the Board for recommendation to Council. In 2006,the City constructed the Oxbow Levee on the Cache la Poudre River to reduce flooding risk and damages to the Buckingham neighborhood north and east of the river. The Oxbow Levee is adjacent to Linden Street between Linden and Lincoln Avenues. A small remnant parcel of the levee is no longer needed for flood control purposes, and the adjacent property owner, PS Poudre River, LLC, has expressed interest in purchasing this small remnant parcel from the City. Board discussion: • Can property be developed without this piece? It is not needed for the levee or by any entity of the City. The remnant parcel is a quarter of an acre in size and has very little value due to its location in the floodplain. • Would it be useful for a future riverbank restoration project? The parcel is isolated and located on the wrong side of the levee. Lindsay Kuntz, real estate specialist with the City's Real Estate Services, noted that values from past appraisals done by the City's Real Estate office were used to calculate the value of this remnant parcel. The parcel is undevelopable by itself and located in the 500-year floodplain. It's mapped in the moderate risk area due to the nature of the risk. • Can this parcel be developed? Floodplain Administrator Marsha Hilmes-Robinson responded that no critical facilities regulation would pertain to it, but the Corps has placed extra restrictions in this unique area of floodplain due to its location by a levee. • A Board member feels the City should receive fair market value for the parcel. The potential buyer wouldn't be buying it in isolation. From historical experience, if it were put on the open market, there would be no interest beyond thayshown by this developer. There is no access to the parcel, and it is too small. • Depending on how it was developed, if the levee failed, would it be the City's responsibility?_ There would be no liability to the City. • Appraisals look at comparable properties. Ms. Kuntz verified that their office looked at comparable properties and pulled from other files of actual appraisals on remnant parcels. The cost of an appraisal would be approximately$1,000. Sale of the parcel would convey the maintenance costs of sending City staff to maintain it. Motion: Vice Chairperson Balderson moved that the Water Board recommend to Council that they approve the sale of the Oxbow Levee parcel to the adjacent property owner. Board Member Phelan seconded the motion. There was no further discussion on the motion. Vote on the motion: 7 for, 3 against. Reasons for nay votes: Board Member Eccleston: An independent assessment should be done on the parcel. Board Member Waskom: Citizens are not getting any return on their dollar. Board Member Bovee: He is concerned about the price. 1 J ORDINANCE NO. 017, 2011 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE CONVEYANCE OF A PARCEL OF STORMWATER UTILITY PROPERTY TO PS POUDRE RIVER, LLC WHEREAS, the City is the owner of a parcel of real property located in Fort Collins, Colorado, identified in County records as parcel number 97122-00-973, located along the Poudre River adjacent to Linden Street (the "City Property"); and WHEREAS, the City Property was purchased in 2004 by the City's Stormwater Utility to construct flood control improvements including a levee; and WHEREAS, City staff determined that the entire City Property was not needed for the construction of the levee, leaving a small parcel of unusable property as described on Exhibit"A", attached and incorporated herein (the "Remnant Parcel"); and WHEREAS, PS Poudre River, LLC (the "Buyer") owns the parcel adjacent to the City Property(the"Buyer's Property")and has expressed interest in purchasing the Remnant Parcel;and WHEREAS, the Buyer will compensate the City $2,500 and grant the City an access easement elsewhere on the Buyer's Property to access the levee; and WHEREAS, City staff has identified no negative impacts to the City resulting from the conveyance of the Remnant Parcel; and WHEREAS, at its regular meeting on January 20, 2011, the Water Board voted to recommend approval of the conveyance described herein; and WHEREAS, Section 23-111 of the City Code provides that the City Council is authorized to sell, convey, or otherwise dispose of real property owned by a City Utility,provided the Council first finds by ordinance that such sale or other disposition will not materially impair the viability of the affected utility system as a whole and that it will be for the benefit of the citizens of the City will be for the benefit of the City's citizens and in the best interest of the City. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: l Section 1. That the conveyance of the Remnant Parcel to PS Poudre River, LLC as provided herein will not materially impair the viability of the affected utility system as a whole and will be for the benefit of the citizens of the City and in the best interest of the City. Section 2. That the Mayor is hereby authorized to execute such documents as are necessary to convey the Remnant Parcel to PS Poudre River, LLC., on terms and conditions consistent with this Ordinance, together with such additional terms and conditions as the City Manager, in consultation with the City Attorney,determines are necessary or appropriate to protect the interests of the City,including,but not limited to,any necessary changes to the legal descriptions of the easements,as long as such changes do not materially increase the size or change the character of the easements. Introduced, considered favorably on first reading, and ordered published this 15th day of February, A.D. 2011, and to be presented for final passage on the 1st day of March, A.D. 2011. Mayor ATTEST: City Clerk Passed and adopted on final reading on the 1 st day of March, A.D. 2011. Mayor ATTEST: City Clerk Exhibit "A" Page 1 of 2 NOW: Will.SITE: NORTHERN r N t N FT I?1a1c EXHIEBU Alrad of land beingv6iiship 7 a portion' North.kang�69-West of the.6th.priticip,id lt,4le`rid.ian,�City of Fortl 6��County of- Lumler,Stlite of Coloi-AI16 being more pardculaiiy.descnbed as follows: Considering jlie SinitlinAe�rly.iright-'of�-ay.line,o-f Liiiateo'�'Streie't4sbeaning North 4101911"East,. 'i n_duth all wntainid herem relative thereto 4EGlNNING,at:a-poinf:pn the.,'.southeasterly-,right-0f way lime'dT.Linden Street whichbears North'41191 F.East(recorded as'Nl6rtli 4_1-10;66-'East)_4- ' 99:16 fe6t-froni the �16-n:' ', Most Northerly'corner of Blo&,'%City of Fort Collins;thence &th�we�ter4 -- property line'of a tract.of land describidat Reception No:2.005-0017087,South .2S 7 Eam`107.74.fi4t:thence 34�,59'48"5ak,'70J4..ket; the�e.,.Sciith A048 Sovrth 49-22Y07 East,52:84 1 feiet .th6ce Aepkrtin w6.terly pr.operty I I I irie;North 19-10-11-West,5_6:22.feet;thence;N`&A`47Tl'4j-West,%69.49 K-et;thence-North 65*44`1.6"West .I.18.66 feet to a po.ihi on said southeasterly rigfil of_ivay line of Linden �Street the said sou&asteilyline;North 410.19 1 111'East_10156 feet tolhee Point of 'IB"e.,6'.n-nini, _ Tlieaboye esc'nbeA tract contains s 9- 159-squaeIfeet or0"224_acres more:0T less and ist tub3ecttoill:ea.emei6?ttid: -_1 : ..r I" , existing.of-waynow.onreco c orexisting. September 19.2010 LIAS S-,%SunvyJobsL24-001�Desmptims)2-li-WI LAX Exhibit Desorption'91-19AO.doc EXHIBIT `°A" Page 2 of 2 A TRACT OF LAND BEING A PORTION OF FRANGE HE NORTHWEST 1/4 OF SECTION 12, TOWNSHIP 7 NORTH, WEST OF THE 6th P.M., CITY OF FORT COLONS, COUNTY OF LARIMER, STATE OF COLORADO. P� ! 0 / 8 O / q5� PROPERTY t l LINE POINT OF BEOINNIND ftaft,... IRhREOORDED FEARING IN RFC.920050717W, OWNER: �p'L. ,•,0 i' P.,POUORE RIVER.LLC gyp. REC.92005-MI7087 TRACT A / 0.224 aces •, q � l �� WESTERN � n, PROPERTY LINE ! ` R:-C.92005-MI7067 ?y �w o- Y OWNER: v' CITY OF FORT COLLINS E%XIS WG LEVEE, ` r TOE OF SLOPE PROPERTY PROPERTY ` LINE LINER ll PROPOSED 15 VADE ` 1 MAINTENANCE AND 1 AOCESS ROAD ` 11 0 1I � `' 1 1 o qn yy fi Zfi 1 i NORTH INORTHERN IN FEET ) NE ENGINEERING I inch = 50 ft .m.�,......m m... ...«�