HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 02/19/2013 - SECOND READING OF ORDINANCE NO. 016, 2013, AUTHORIDATE: February 19, 2013
STAFF: Ken Waido, Helen Matson
Kayla Ballard
AGENDA ITEM SUMMARY
FORT COLLINS CITY COUNCIL 9
SUBJECT
Second 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
This Ordinance, unanimously adopted on First Reading on February 5, 2013, authorizes the lease of 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. This lease is for land only and does not allow use of City-owned water on
the property.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on Second Reading.
ATTACHMENTS
1. Copy of First Reading Agenda Item Summary - February 5, 2013
(w/o attachments)
2. Staff memo re: Market Rate
COPY
COPY
COPY
COPY
ATTACHMENT 1
DATE: 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
OPERATIONS SERVICES
REAL ESTATE SERVICES
P.O. Box 580
300 Laporte Avenue, Bldg. B
Fort Collins, CO 80522-0580
970.416.2276
970.416.2209 – fax
@fcgov.com
MEMORANDUM
DATE: February 5, 2013
TO: Mayor and City Councilmembers
THRU: Darin Atteberry, City Manager
Wendy Williams, Assistant City Manager
Ken Mannon, Director of Operation Services
FROM: Helen Matson, Real Estate Services Manager
RE: Item #19 – First Reading of Ordinance No. 016, 2013, Authorizing the
Lease of City-Owned Property at 6916 South College Avenue for up to Five
Years.
Questions from Leadership Team Meeting: (a) What is the market rate for renting or leasing
this 17 acre parcel; (b) If the City is leasing below market rate, what is the rationale for doing
so.
This property is leased as a dryland farming lease and does not allow the use of City-owned
water on the property. When comparing the cost per acre for this property with other dryland
properties that the City leases out, this property is slightly higher. This property is
approximately $32 per acre and the other City-owned dryland property leases at $20 per acre.
The most current survey results conducted by Colorado State University Extension, “Custom
Rates for Colorado Farms and Ranches in 2011”, indicates that for small grain (dryland) activity
in the Northern region of Colorado, the market rate is between $22.00 and $35.00 per acre.
Therefore, leasing this property at $32 per acre would be considered in the fair market range.
ATTACHMENT 2
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