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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/06/2007 - FIRST READING OF ORDINANCE NO. 135, 2007, AUTHORIZ ITEM NUMBER: 14 AGENDA ITEM SUMMARY DATE: November6, 2007 FORT COLLINS CITY COUNCIL STAFF: Jim Hibbard Pat Hyland SUBJECT First Reading of Ordinance No. 135, 2007, Authorizing the Conveyance of a Portion of Lot 30 in Golding-Dwyer Subdivision of Block 275, in the City of Fort Collins. RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. FINANCIAL IMPACT The City will receive the sales price of the lot, less the usual and customary expenses of the sale. The value of the lot is $5,000. EXECUTIVE SUMMARY A local real estate broker is attempting to sell the house and lot at 525 North Whitcomb Street,being Lot 31, in Golding-Dwyer Subdivision,of Block 275. Lot 31 is adjacent to the City-owned Lot 30. A two-car garage that is attached to the house on Lot 31 is located on and encroaches upon a portion of City-owned Lot 30. The broker wants to sell Lot 31 and the encroachment area on Lot 30 together, in order for the purchaser to have both house and attached garage on two lots. In 1998, the City acquired this lot along with vacated railroad property from Burlington Northern and Santa Fe Railroad. At the time the property was acquired, the encroachment of the garage already existed. The portion of Lot 30 to be conveyed is not suitable for any present or future use by the City. By selling the land,it will be returned to the tax rolls of the City and will be maintained by a new owner according to City standards. BACKGROUND At some time in the past, the owner of Lot 31, in Golding-Dwyer Subdivision, of Block 275, constructed a garage on Lot 30, which was then owned by the Burlington Northern and Santa Fe Railroad (BNSF). That owner had no permission from BNSF to build a garage on Lot 30. The encroachment went unnoticed for an unknown length of time. November 6, 2007 -2- Item No. 14 When BNSF learned of the encroachment, it entered into a lease agreement with the owner of the house, who apparently built the encroaching garage which required the owner to pay BNSF an annual rent for the encroachment. BNSF subsequently conveyed a larger parcel of real estate to the City, which contained Lot 30 and the encroaching garage structure. After that conveyance, BNSF assigned the lease to the City. The City then entered into a new agreement with the owner of Lot 31, to lease a portion of Lot 30(Ground Lease Agreement signed and dated May 14, 1999). The current owner has not paid his rent on the property. The owner presently wants to sell the house and real estate on Lot 31. Prospective purchasers have all indicated that they would purchase the house on Lot 31 if, and only if, they could also purchase the garage and the encroachment area on Lot 30. The City offered to sell Lot 30 for $4,165 in 2000. The owner did not respond to that offer to purchase. The present value of the encroachment area on Lot 30 is $5,000. ATTACHMENTS 1. Location Map LOT 30 - N . WH ITCOM B ST . LOCATION MAP - UTILITIES SERVICE CENTER ELM ST F S � � T I I � I wll SYCAMORE ST .._. >{--- --- ------ W co I p 0 OI Z W O 2 j = Z t j � Z � � I y I CHERRY ST P, Im ! � I i N r=.f,; Property Location p ORDINANCE NO. 135, 2007 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE CONVEYANCE OF A PORTION OF LOT 30 IN GOLDING-DWYER SUBDIVISION OF BLOCK 275, IN THE CITY OF FORT COLLINS WHEREAS, the City of Fort Collins (the "City") is the owner of a portion of Lot 30, in Golding-Dwyer Subdivision, of Block 275, in the City of Fort Collins (the "Property"); and WHEREAS, the Property was conveyed to the City by the Burlington Northern Santa Fe Railroad (BNSF) as a result of its abandonment of the railroad right-of-way within the city in that area in exchange for a payment from the City's electric fund; and WHEREAS, at some time in the past,when the Property was owned by BNSF, an adjoining landowner constructed a two-car garage on a portion of Lot 30 (the "Property") and attached the garage to the house located on Lot 31, in Golding-Dwyer Subdivision, of Block 275; and WHEREAS, the City has not identified a use for the Property, which is more particularly described on Exhibit "A", attached hereto and incorporated herein by this reference; and WHEREAS, the City is not receiving any rent or payment for the encroaching garage building, nor will the City realistically need the Property for any purpose in the foreseeable future; and WHEREAS,selling the Property will release the City ofits maintenance responsibilities;and WHEREAS, the Property and the encroaching garage structure located upon it are falling into some disrepair; and WHEREAS, prospective purchasers may now be ready, willing and able to purchase the house on Lot 31,presently listed for sale by the owner of said land, and the adjoining Property; and WHEREAS, the estimated fair market value of the Property, with the encroaching garage structure located thereon, is $5,000; and WHEREAS, based on staffs review, it has been determined that the conveyance of the Property will not have any adverse affects on the City and is in the best interests of the citizens of the City; and WHEREAS, Section 23-111 of the City Code provides that the City Council is authorized to sell, convey or otherwise dispose of an interest in real property owned by the City, provided the Council first finds or ordinance that any sale or disposition of that real property interest 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, as follows: Section 1. That the City Council hereby finds that the conveyance of the Property, a portion of Lot 30, in Golding-Dwyer Subdivision, of Block 275, Fort Collins, Colorado,consistent with the terms of this Ordinance,will not materially impair the viability of the City's electric utility as a whole, and will be for the benefit of the City's citizens, and further finds that it will be in the best interests of the City of Fort Collins. Section 2. That the City Council hereby finds that the fair market value of the Property is $5,000, and payment therefor in said amount is hereby approved. Section 3. That the Mayor is hereby authorized to execute such documents of conveyance consistent with this Ordinance, as are necessary for the City to quit claim the Property including such additional terms and conditions as the Mayor, in consultation with the City Attorney, determines to be necessary and appropriate to protect the interests of the City in this matter, including any necessary changes to the legal description of the Property, as long as such changes do not materially increase the size or change the character of the Property. Introduced, considered favorably on first reading, and ordered published this 6th day of November, A.D. 2007, and to be presented for final passage on the 20th day of November, A.D. 2007. Mayor ATTEST: City Clerk Passed and adopted on final reading on the 20th day of November, A.D. 2007. Mayor ATTEST: City Clerk EXHIBIT "A" All of that part of Lot 30, in Golding-Dwyer Subdivision of Block 275, Subdivision of West Side Addition to the City of Fort Collins, in Larimer County, Colorado, subject to easements and rights- of-way of record, owned by The City of Fort Collins.