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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 02/05/2013 - FIRST READING OF ORDINANCE NO. 016, 2013, AUTHORIZDATE: February 5, 2013 STAFF: Ken Waido, Helen Matson Kayla Ballard AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 19 SUBJECT First Reading of Ordinance No. 016, 2013, Authorizing the Lease of City-Owned Property at 6916 South College Avenue for up to Five Years. EXECUTIVE SUMMARY The City desires to continue leasing this 17+ acre property, which is part of the Affordable Housing/Land Bank Program, located at 6916 South College Avenue, as a ground lease for another five year period. BACKGROUND / DISCUSSION In 2002, the City acquired this 17.11 acre vacant property, known as the Bernhardt Property, as part of the Affordable Housing/Land Bank Program. This lease is for land only and does not allow use of City-owned water on the property. Leasing the property will generate revenue for the program and eliminates the cost of ground maintenance for the City. The City has leased this property for hay production since 2003 and would like to continue leasing the property. FINANCIAL / ECONOMIC IMPACTS Rent collected from this lease will result in at least $550 per year in unanticipated revenue. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. ATTACHMENTS 1. Location map ORDINANCE NO. 016, 2013 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE LEASE OF CITY-OWNED PROPERTY AT 6916 SOUTH COLLEGE AVENUE FOR UP TO FIVE YEARS WHEREAS, the City is the owner of the property located at 6916 South College Avenue, Fort Collins, Colorado containing 17.11 acres and known as the Land Bank-Bernhardt Property (the “Property”); and WHEREAS, at the time the City purchased the Property in 2002, the land was in agricultural production; and WHEREAS, the City intends to hold the Property for a period of at least five more years before pursuing the development of affordable housing on the Property; and WHEREAS, the City has leased the Property for agricultural production since 2003; and WHEREAS, the City desires to continue to lease the Property for an additional period of up to five years at an annual rate of at least $550; and WHEREAS, leasing the Property permits the continued use of the ground for the agricultural production of hay; and WHEREAS, under Section 23-111(a) of the Code of the City of Fort Collins, the City Council is authorized to sell, convey or otherwise 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 sale or other 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 under the terms listed above is in the best interests of the City of Fort Collins. Section 2. That the City Manager is hereby authorized to execute a lease agreement for the Property 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 to be necessary or appropriate to protect the interests of the City, including any necessary changes to the description of the Property, as long as such changes do not materially increase the size or change the character of the leased premises. Introduced, considered favorably on first reading, and ordered published this 5th day of February, A.D. 2013, and to be presented for final passage on the 19th day of February, A.D. 2013. _________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on the 19th day of February, A.D. 2013. _________________________________ Mayor ATTEST: _____________________________ City Clerk