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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 07/16/2002 - FIRST READING OF ORDINANCE NO. 096, 2002, AUTHORIZ AGENDA ITEM SUMMARY ITEM NUMBER: 16 FORT COLLINS CITY COUNCIL DATE: July 16, 2002 STAFF: Alan Krcmarik SUBJECT: First Reading of Ordinance No. 096, 2002, Authorizing the Transfer of 156-Acres from Special Improvement District No. 86 (the Provincetowne Portner Special Improvement District) to the City Natural Areas Program In Exchange for Payment for Value. RECOMMENDATION: Staff recommends adoption of the Ordinance on First Reading. FINANCIAL IMPACT: The City became the owner of approximately 341-acres of the Provincetowne Special Improvement District property when owners of the land failed to make special assessment payments. To prevent default on the bonds that had been issued to make the improvements in the special district, the City advanced money from the General Fund to make payments to bondholders. To make payments to bondholders and to repay the General Fund, the Finance Department has been selling property acquired through the foreclosure process. Most of the les have been made to private owners, but the Natural Resources Department thought that the Benson eservoir and the adjacent property would be a good addition to the Open Space program. City policies allow for other City Departments to indicate if they would like to acquire other City property. The value of the land was set through an open bidding process, which in turn was supported by an independent appraisal. The Finance Department will make the $1,035,422 payment by transferring money from the Open Lands fund to the special improvement district fund. EXECUTIVE SUMMARY: Adoption of this Ordinance would allow the Natural Resources Department to acquire approximately 156-acres of open space, natural areas, and reservoir located in the Provincetowne Special Improvement District. The property is located east of College Avenue and south of Trilby Road. The total cost of the acquisition will be $1,035,422. The total cost includes the cost of the land, credits for reconstruction of the dam on the reservoir site, restoration, easements, and interest on the cost that has been incurred since the Natural Resources Department indicated its interest in buying the property. " i BACKGROUND: The City became the owner of approximately 341 acres of property located south of Trilby Road, west of Lemay Avenue, north of Carpenter Road, and east of College Avenue after the property was sold at tax sale in 1990 (the "Provincetowne Property"). In 1996, the City entered into an agreement to convey approximately 181-acres of the Provincetowne Property to Pridemark Homes. Pridemark sold its interest in the property to KB HOME COLORADO. KB has been acquiring portions of the property through an option contract for the last four years. KB has also i negotiated and acquired various easements within the property to meet its development requirements. DATE: July 10, 2UU2 1 2 ITEM NUMBER: 16 The City's Natural Resource Department indicated that it would acquire the remaining acreage, which was recently determined by the City Engineering Department to be 155.63 acres in size. A map showing the location of the property is attached. The area will be used as a natural area. Improvements to the dam and reservoir will be required and the associated costs have been taken into account in determining the acquisition price. City staff from the Finance and Natural Resources Departments arrived at the total cost for this transaction based on the following: 83 acres X $10,588/acre $878,804 73 acres X $3,000/acre $219,000 Reduction - 50% of Dam reconstruction ($175,000) Reduction - 50% of Restoration @ $500/ac X 83 acres ($20,750) Sub-Total $902,054 Plus Interest for 98,99,00,01 & 02 thru August $247,023 Total $1,149,077 Less Value of Provincetowne Drainage Easements Granted on the Property in 2001 $113,655 Purchase Price $1.035,422 . ORDINANCE NO. 096, 2002 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE TRANSFER OF 156 ACRES FROM SPECIAL IMPROVEMENT DISTRICT NO. 86 (THE PROVINCETOWNE PORTNER SPECIAL IMPROVEMENT DISTRICT) TO THE CITY NATURAL AREAS PROGRAM IN EXCHANGE FOR PAYMENT FOR VALUE WHEREAS, the City of Fort Collins, through Special Improvement District No. 86 (the Provincetowne Portner Special Improvement District, referred to herein as the "SID") acquired approximately 341 acres of property located south of Trilby Road, west of Lemay Avenue,north of Carpenter Road, and east of College Avenue, after the property was sold at tax sale in 1990 (the "Provincetowne Property"); and WHEREAS,pursuant to Ordinance No.41, 1996, the City has agreed to sell approximately 181 acres of the Provincetowne Property, subject to certain terms and conditions, including the development of Provincetowne P.U.D., Second Filing; and WHEREAS,the City plans to retain approximately 160 acres of the Provincetowne Property for inclusion in the City and in the future made a part of the City's Natural Areas program, and that property, as described on Exhibit"A", a copy of which is on file in the office of the City Clerk and • incorporated herein by this reference, has been designated in the Natural Areas program as parcel #01 FC 1 (the "Natural Area Property" or the "Property"); and WHEREAS, in order to complete the planning process for Provincetowne P.U.D. Second Filing,the developer of those portions of the Provincetowne Property that have been sold by the City, KB HOME COLORADO, Inc., purchased easements on the Natural Area Property for offsite drainage improvements including a detention pond, storm sewer line, storm drainage swales, pursuant to Ordinance No. 82, 2001 (the "Easements"); and WHEREAS, in exchange for the grant of the Easements, KB HOME COLORADO paid to the City the fair market value of the same, in the total amount of $113,755, which amount was deposited in the SID fund; and WHEREAS,the adjusted fair market value of the Natural Area Property has been determined by City staff to be$1,035,422,based upon bids for Provincetowne Property generally in 1996-1997 ($1,097,804),adjusted upward to include interest on that amount through August 2002($247,023), and adjusted downward to reflect certain specific burdens and obligations associated with the Property ($309,405); and WHEREAS,the downward adjustments to the value of the Natural Area Property are based upon the full value of the Easements,in the amount of$113,655,dam reconstruction work associated with the Property that the Natural Areas Program will be required to carry out at a cost of • approximately$175,000,and restoration and maintenance costs associated with the Property that the Natural Areas Program has assumed in the amount of$20,750; and WHEREAS,the funds necessary to acquire the Natural Area Property in accordance herewith are appropriated and available in the Capital Projects Fund for 1/4 Cent Natural Areas Capital Improvements. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that the transfer of the Natural Area Property from the SID to the Natural Areas Program in accordance with the terms of this Ordinance and in exchange for the payment of funds in the amount of $1,035,422 from the Capital Projects Fund for 1/4 Cent Natural Areas Capital Improvements, is hereby authorized and approved. Introduced,considered favorably on first reading,and ordered published this 16th day of July, A.D. 2002, and to be presented for final passage on the 20th day of August, A.D. 2002. Mayor ATTEST: City Clerk Passed and adopted on final reading this 20th day of August, A.D. 2002. Mayor ATTEST: City Clerk PROPERTY TO BE PURCHASED BY NATURAL RESOURCES TRILBY ROAD PROPERTY DEVELOPED BY KB HOMES W PROPERTY TO Z BE DEVELOPED W Li1 / / BY KB HOMES Z Q W � ,� W / L / Q 3 W J UN-DEVELOPABLE LAND -) -(ROBERT BENSON LAKE).'/ W W 72.668 ACRES / / _ U / / PROPERTY DEVELOPED -i BY KB HOMES I H W `DEVELOPABLE LAND ! 82973 ACRES COUNTY ROAD 32 / CARPENTER ROAD SCALE 1'=300' N UN-DEVELOPABLE LAND TO BE PURCHASED BY NATURAL RESOURCES (72.662 ACRES) TOTAL AREA DEVELOPABLE LAND TO BE PURCHASED 155.635 ACRES TO BE PURCHASED BY NATURAL RESOURCES <82.973 ACRES)