HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 08/19/2003 - POSTPONEMENT OF SECOND READING OF ORDINANCE NO. 09 AGENDA ITEM SUMMARY ITEM NUMBER: 10
FORT COLLINS CITY COUNCIL DATE: August 19, 2003
FROM: Steve Comstock
SUBJECT:
Postponement of Second Reading of Ordinance No. 098, 2003, Authorizing the Transfer of a
151-acre Portion of the Resource Recovery Farm from the Wastewater Utility to the Natural
Areas Program in Exchange for a Total Payment Amount of$1,890,306, Indefinitely.
RECOMMENDATION:
Staff recommends indefinite postponement of the Ordinance on Second Reading.
EXECUTIVE SUMMARY:
In 2000, the City of Fort Collins Natural Areas program purchased 174 acres of the Resource
Recovery ("RR") Farm along with 3.6 shares of the Lake Canal water for the Running Deer
Natural Area. In discussion at the City Council study session regarding the draft I-25 Corridor
Plan on August 27, 2002, there was general support for the City's Natural Areas program to
110 purchase the 151-acre portion of the RR Farm from Utilities. This 151-acre transfer to the
Natural Areas program would include the 2.4 shares of Lake Canal water associated with this
portion of the RR Farm. This Ordinance, which was unanimously adopted on First Reading on
July 1, 2003, authorizes the transfer of a 151-acre portion of the RR Farm from the Wastewater
Utility to the Natural Areas Program.
Staff is requesting the Ordinance be postponed indefinitely to allow additional staff work.
ORDINANCE NO. 098, 2003
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE TRANSFER OF
A 151-ACRE PORTION OF THE RESOURCE RECOVERY FARM
FROM THE WASTEWATER UTILITY
TO THE NATURAL AREAS PROGRAM
IN EXCHANGE FOR A TOTAL PAYMENT AMOUNT OF$1,890,306
WHEREAS, the City of Fort Collins is the owner of that certain real property located in
Fort Collins and known as the Resource Recovery Farm, which was purchased by the
Wastewater Utility for Wastewater Utility purposes (the "Resource Recovery Farm"); and
WHEREAS, the Resource Recovery Farm, which is located southwest of the intersection
of Interstate 25 and Prospect Road, was developed in 1982 by the Wastewater Utility for use as a
beneficial reuse site for wastewater biosolids; and
WHEREAS, as the city has grown, the Resource Recovery Farm has become a less
desirable location for its originally intended use, and in 1993 the Wastewater Utility began
shifting its biosolids reuse operation to its Meadow Springs Ranch property; and
WHEREAS, the Wastewater Utility discontinued use of the Resource Recovery Farm for
its biosolids operation in the year 2000, having completed its relocation of the program to
Meadow Springs Ranch; and
• WHEREAS, City staff has determined that there is no longer a wastewater related use
appropriate for the Resource Recovery Farm, except as expressly set forth herein; and
WHEREAS, in March 1998, the City Council approved Resolution 98-43, authorizing a
50-year Intergovernmental Agreement with Colorado State University that required that portions
of the Resource Recovery Farm be used and developed in accordance with the "Poudre River
Environmental Learning District Conceptual Land Use Plan" (the "IGA"); and
WHEREAS, in March 2000, the City Council approved Ordinance No. 199, 1999,
authorizing the conveyance of a mining lease on the western portion of the Resource Recovery
Farm for sand and gravel mining purposes (the "Mining Lease"), which Ordinance further noted
that the 174-acre site subject to the Mining Lease had a total fair market value of $1,270,000,
and that in exchange for a payment of the first of three installments in the amount of $540,000,
the first of three portions of said site would be transferred to the Natural Areas program from the
Wastewater Utility; and
WHEREAS, the Wastewater Utility has now received all payments due from the Natural
Areas program in the total amount of $ 1,270,000 for the Mining Lease site, along with the
associated 3.6 shares of Lake Canal Irrigation company, and a portion of said site has now been
named and is in use by the public as Running Deer Natural Area; and
. WHEREAS, the Wastewater Utility is currently in the process of marketing for sale the
25-acre portion at the far northeast of the Resource Recovery Farm known as Field One, which
is excluded from the terms of the IGA and which offers more development and revenue-
generation potential for the Utility ("Field One"); and
WHEREAS, Natural Areas program staff has determined that the remaining 151-acres of
the Resource Recovery Farm not previously transferred to the Natural Areas program and to the
south of Field One offers natural area and open space values of sufficient significance to warrant
purchase of that property, more specifically described on Exhibit "A", attached hereto and
incorporated herein by this reference (the "Property"), for its appraised value; and
WHEREAS, the Property was appraised in October 2002 to have a fair market value of
$1,860,000; and
WHEREAS, Utility and Natural Areas staffs have proposed that the funds for the
Property be paid to the Wastewater Fund in three installments, the first installment in the amount
of $620,000 to be paid on or before August 1, 2003, and the remaining two, in the amount of
$635,153 each, to be paid on or before August 1 of the next two years; and
WHEREAS, the total amount to be paid for the Property, $1,890,306, reflects the
addition of total interest in the amount of$30,306, based on an annual interest rate of 1.625% on
the amounts due in future years from August 1, 2003; and
WHEREAS, certain buildings located on the Property are currently in use by the
Wastewater Utility, and, in order to allow for a smooth transition from this use of the Property,
staff has proposed that the Wastewater Utility's use of the buildings be allowed to continue
through October 1, 2003; and
WHEREAS, in order to avoid the creation of impediments to the sale and development of
Field One, and to preserve the revenue generating potential of Field One for the Wastewater
Utility, Wastewater Utility staff has requested that the transfer of the Property to the Natural
Areas program be subject to the acknowledged future need for access and utility easements or
other easements across the Property for the sale and development of Field One, which easements
will be subject to City Council approval by ordinance; 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 the City, including
leasing of the property, provided the Council first finds by ordinance that any sale or disposition
of real property owned by the City will not materially impair the viability of any City utility
system as a whole of which the property is a part, will be for the benefit of the City's citizens,
and will be in the best interests of the City.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS that the transfer of the Property from the Wastewater Utility, consistent with
the terms and conditions set forth herein, will not materially impair the viability of the City's
wastewater utility as a whole, and will be for the benefit of the City's citizens, and in the best
interests of the City.
• Introduced, considered favorably on first reading, and ordered published this 1st day of
July, A.D. 2003, and to be presented for final passage on the 19th day of August, A.D. 2003.
ATTEST: Mayor
City Clerk
Passed and adopted on final reading this 19th day of August, A.D. 2003.
ATTEST: Mayor
City Clerk
•
•
AGENDA ITEM SUMMARY ITEM NUMBER: 14
FORT COLLINS CITY COUNCIL DATE: July 1, 2003
STAFF:
Steve Comstock
SUBJECT:
First Reading of Ordinance No. 098, 2003, Authorizing the Transfer of a 151-acre Portion of the
Resource Recovery Farm from the Wastewater Utility to the Natural Areas Program in Exchange
for a Total Payment Amount of$1,890,306.
RECOMMENDATION:
Staff recommends adoption oCeOrdinj aceoPtReading.
FINANCIAL IMPACT:
The Wastewater Fund will receive three annual payments that total $1,890,306 from Natural
Resources. The first payment of $620,000 is due on August 1, 2003, and two additional
payments of $635,153 each that 'ncjude i to est 2 per ear are payable on August 1,
2004, and August 1, 2005. '4
ID
EXECUTIVE SUMMARY:
In 1982, the City developed the Resource Recovery Farm ("RR Farm") at Prospect Road and I-
25 as a beneficial reuse site for wastewater biosolids. The City land applied biosolids on the site
through the year 2000. As the y,ty as ow th si a ec e less functional for this type
of use. In 1993, the biosoliUPUtirlit"e
gan ort o Meadow Springs Ranch. With
the move now complete, t 's n o er using a RR Farm land for biosolids
application.
In 2000, the City of Fort Collins Natural Areas program purchased 174-acres of the RR Farm
along with 3.6 shares of the Lake Canal water for the Running Deer Natural Area. In discussion
at the City Council study session regarding the draft I-25 Corridor Plan on August 27, 2002,
there was general support for the City's Natural Areas program to purchase the 151-acre portion
of the RR Farm from Utilities. This 151-acre transfer to the Natural Areas program would
include the 2.4 shares of Lake Canal water associated with this portion of the RR Farm.
The property was appraised at $1,860,000 in October 2002. The purchase price has been set at
this appraised value, and at Natural Resources' request will be paid in three annual installments
beginning August 1, 2003. An interest rate of 1.625% will be charged to offset the cost of the
delayed payments to the Wastewater Fund.
DATE: July ITEM NUMBER: 14
This transfer to the Natural Areas program will not adversely impact the Wastewater Utility so
long as it is subject to the understanding that access and utility easements or other easements will
likely be needed for the sale and development of the remaining portion of the RR Farm, which is
currently being marketed for sale to the general public. This remaining property is a 25-acre
parcel known as "field one". Field one is located on southwest corner of I-25 and East Prospect
Road and it is currently for sale at a minimum price of$2,000,000.
The RR Farm purchase was discussed by the Natural Resources Advisory Board at a work
session in early 2003. Although no formal action was taken by the Board, members of the Board
expressed support for the purchase of the parcel by the Natural Areas program, and no objections
were raised in the Board's discussions.
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A map of the property is attacfi"eed.
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