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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 10/16/2007 - FIRST READING OF ORDINANCE NO. 128, 2007 AUTHORIZI ITEM NUMBER: 24 AGENDA ITEM SUMMARY DATE: October 16, 2007 FORT COLLINS CITY COUNCIL STAFF: Darin Atteberry John Stokes SUBJECT First Reading of Ordinance No. 128, 2007, Authorizing the Conveyance of 143 Acres of Land to Colorado State University Research Foundation in Exchange for 267 Acres of Land Adjacent to Reservoir Ridge Natural Area. RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. FINANCIAL IMPACT The value of each of the exchange properties has been determined to be $4 million respectively. Both parties have made adjustments to the size of the exchange properties and negotiated various provisions in order to arrive at an equal exchange value. In addition to the exchange transaction,the City will obtain an option to buy 27 acres from CSURF for$405,000. There also will be an internal transfer of funds from the Natural Areas Program in the amount of$2,000,000 to the general fund to compensate the general fund for 25 of the 143-acre City-owned exchange parcel. Thus,the net cash investment of new Natural Area Program funds for the exchange and the acquisition will be $2,450,000. Of the 143-acre City-owned exchange parcel, 118 acres were acquired by the Natural Areas Program in 2003 for$12,317 per acre,or$1,453,509. Thus,the total investment by Natural Areas in the 143- acre exchange parcel is$3,453,509($2,000,000 for the 25-acre general fund parcel,and$1,453,509 for the I I8-acre parcel). This$3,453,509 investment will traded for the 267-acre CSURF exchange parcel valued at $4,000,000. The City's Natural Areas Program will own/manage all of the property acquired from Colorado State University. Ongoing management costs for the 267 acres(and the 27 acres)are expected to be fairly low(435,000 annually),since the City already manages much of the surrounding land. In the future there could be modest capital costs associated with constructing a trail and a small bridge to cross an irrigation canal. All costs for managing and/or improving the land will be born by the City's dedicated Natural Areas funds. EXECUTIVE SUMMARY The adoption of this Ordinance will authorize a land exchange between the City of Fort Collins and the Colorado State University Research Foundation(CSURF). The proposed exchange consists of October 16, 2007 -2- Item No. 24 the City trading 143-acres of City-owned land at the southwest corner of I-25 and Prospect(a portion of the former Resource Recovery Farm) for 267-acres of state-owned land on Colorado State University's foothills campus. The exchange land currently owned by the City would become a gateway for Colorado State University into the City, and ultimately would include research, development, educational, and light manufacturing facilities. The exchange land currently owned by Colorado State University would become part of the Reservoir Ridge Natural Area, which is owned/managed by the City's Natural Areas Program. In addition to the exchange,the City would acquire an option to purchase an additional 27 acres from CSURF that is adjacent to the CSURF exchange property and Reservoir Ridge. BACKGROUND For the past year, the City and Colorado State University (CSU) have been discussing various concepts related to land conservation as well as CSU's desire to have a significant gateway presence on the I-25 corridor. Those conversations recently crystallized as it became apparent to both parties that significant, advantageous arrangements could be made that would greatly benefit both parties. The 143-acre City-owned exchange property at the southwest corner of I-25 and Prospect(known as the Resource Recovery Farm)has been owned by the City since around 1980. It originally was acquired for use as a bio-solids land-application site for the Wastewater Utility. The property's original size was 325 acres; over time much of that land was acquired by the City's Natural Areas Program to become part of Running Deer Natural Area. The most recent acquisition was in 2003, when 151 acres were acquired by the Natural Areas Program at the direction of City Council to protect open space along I-25. Of those 151 acres, 118 acres are proposed to be part of the land trade with CSU. The remaining 33 acres would be retained by the Natural Areas Program to protect Boxelder Creek and the Poudre River corridors. An additional 25 acres that is held by the general fund of the City at the corner of I-25 and Prospect would bring the total amount of the trade parcel to 143 acres. (See attached map) In the proposed transaction with CSURF, the 143-acre trade parcel is described as two pieces, the 25 acres at the corner of I-25 and Prospect and the additional I I8-acres to the south. The 25 acres would be conveyed to CSURF subject to all applicable zoning and development regulations. The 118 acres also would be conveyed subject to all applicable zoning and development regulations with the additional proviso that forty percent (40%) of the 118 acres would be required to be "outdoor spaces." Outdoor spaces are defined to be landscaped or park areas,native vegetation areas,water features, paths, or trails,but no other paved or surfaced areas. In addition to this requirement, the outdoor spaces are not allowed to be aggregated in a single contiguous area and must be distributed throughout the I I8-acre parcel. The intention of these provisions is to continue to provide a relatively"transparent"built environment at the site, so that good views are maintained from I-25 to the west. CSU's intention in acquiring the 143-acre property is several fold: (1) to establish a gateway presence on I-25 that will lead visitors to CSU to the main campus by way of Prospect;(2)to create a research and development"campus-like"facility primarily focused on green technologies;and(3) to provide a location in partnership to a major start-up company with plans to begin manufacturing October 16, 2007 -3- Item No. 24 solar panels as soon as 2008. The start-up company developed its technology at CSU and intends to have as many as 300 employees within a year. The 267-acre CSURF-owned property that would be conveyed to the City is land that has traditionally been utilized by CSU for grazing and animal husbandry. The east and west boundaries of the property adjoin existing natural areas. The south boundary adjoins other CSU lands;the north boundary adjoins City-owned natural area as well as the 27-acre parcel held by CSURF that will be optioned for purchase by the Natural Area Program(see attached map) for Four Hundred and Five Thousand Dollars ($405,000). When the 267-acre and 27-acre parcel are combined with existing natural areas, the total contiguous conserved area will be 748 acres, one of the largest local natural areas. The conserved area will stretch from the top of the first major foothill west of town to Overland Trail Road. In addition to habitat contiguity, conservation values include wetlands, shortgrass prairie, and prairie dog colonies. Scenically, this area will be one of the few, if not the only place in north Fort Collins, where an unobstructed vista to the foothills is preserved. In addition to the conservation values, the area will provide trail connection opportunities from Overland Trail to the foothills and contributes to a longer-term plan to connect this area by trail to the Poudre River. Moreover, the protected area will surround and be adjacent to the Primrose Studio. The Primrose Studio,along with land,was donated to the City of Fort Collins Natural Areas Program by Rob and Mary Udall with the stipulation that the art studio be made available to the public for classes and meetings related to conservation. Primrose Studio is planned to be open November 18th. ATTACHMENTS 1. Vicinity Map 2. Reservoir Ridge Map 3. Resource Recovery Farm Map 1 _ c ,i 1�y E III ; ! UM 11 rw IN mwa RIDGE � #D4FHI �� tel:_ �A�% • /. rLAP �• E VINE DR son I��-IIIINHHIII .�� 11 177 �_� o " IIIII UFO,,^�IIuuNHI 'l1;lEl'IG ; illl� �� ` Aw - 1� 1i'•—un:1111111110■l4111!I_\ifG� :, • - � '�,, ■ , Cdlege � � , T,_ 1��1===I I I I I I Wf11:CEll 11111111► � 11E11 �� _ Illlllr..h�llr. -� 1 1-•" �lii�lll��lllllllll II mlll 7— r.•- ��rl�ll!__!° � m �� • JIMIS Lake rll� ll—I� IIII � . 111��■II�.III■ �.+Irie�■:�1��.�".�7m• •1111=11i:I!_ ��•r�!�\\ll�� M�,�- ■.■ _ ■Illy■ �� - �Tc3 I��ir'•1��1 - • lulr W C . .,11„lai� ,�■� 1rJlErtA � p ko:04 � .fit �u7■E7E��\!�A'�� !27 .4 Y' _ Arl J - Acres ?�' i x 0 t. R ^f ; . r. , f� Resource Recovery Farm Proposed City - CSU Transaction �1 25, 17 Acres General Fund Exchange Parcel Natural rea Exchange Parcel MCLAUGHLIN L T A 117 ,26 Acres m A 0 PERSON � _ NSERVATION � EASEMENT m A { r ! m [ t 1 Legend I V = Natural Areas CSU Transaction 0 300 600 17200 City of Fort Collins ® General Fund Exchange Parcel Feet Cer�geaphic [ntnrmat:nn ® Natural Areas Exchange Parcel Services City of Fort Collins .f �� Natural Areas Pro ram g City — CSU Land Exchange October 16 , 2007 Vicinity Map 7�\ I'�IIII 1 - �Iln WLWL ` oh 1 Y A i r �III1111 _�� _ II STAM � �JI��IFryr ' ' . ■ 4 � i • . -,* . . w RAXE RD E e� -f ? lid y►�-. V %s Lewnd 1 Resouree Reeovery Farm Proposed City • CSU iranSaetion T 0 �� • . _ - A 3 Reservoir Ridge Proposed city - C8U Transaedon N 4 2 The Transaction • Trading 143 -acres of the RRF for 267 acres of CSU land • Trade parcels valued at $4 million each • Optioning 27 acres from CSURF • Option parcel valued at $405 ,000 The Transaction bai RarniY Irn The 143 -acre tract is two pieces "" " C • The 25 -acre piece is being acquired by NA ' s from the general fund for $2M F ,- • It will be conveyed with all development rights , intact 9M 3 The Transaction • The 118 -acre piece is owned by NA ' s, «� acquired in 2003 for $ 1 ,453 ,509, part of a 151 -acre acquisition at the time • NA ' s will hold back 33 acres on Box Elder and by the Poudre River • The 118 -acre parcel subject to a 40% development restriction Development Restriction • forty percent (40%) of the 118 acres are required to be "outdoor spaces . " Outdoor spaces are defined to be landscaped or park areas, native vegetation areas, water features, paths , or trails , but no other paved or surfaced areas . In addition to this requirement, the outdoor spaces are not allowed to be aggregated in a single contiguous area and must be distributed throughout the 118-acre parcel • Purpose of the restriction is to promote a campus-like, attractive development that will be aesthetically pleasing 4 Ownership and Tax Status of 143 - acre Trade Parcel • Parcel will be held in a taxable entity by CSU • City will retain a right-of-first-refusal on the 143 -acre parcel to help ensure that it will not be conveyed to a tax-exempt entity • Property will be subject to all City zoning and development regulations Return on Investment • Total investment by NA ' s in 143 acres at RRF : $ 3 ,453 , 509 • Trading for $4,000,000 in value, a 16% gain on original investment • Creation of superb natural area • Creation of academic and business hub devoted to sustainable technologies and location of a solar manufacturing company with up to 300 new jobs 5 Reservoir Ridge dCRY - kNMp. hopof W City • C8U TrM,Mctlon Natural Area • W/addition of the 267 and 27 acre parcels, total area will be 748 acres • Connects from Horsetooth to Overland • Habitat values • Trail connections • Primrose Studio A I I • Mim. ti .Y • . _ _ * T 1 If J w t' Nli•. � R .5i � , , -�lF• ; r } . ti . J 9j a ¢ fl +� Y " 7G' _ A4� •' rr i t k { ! s yr 7pq !° i: + ..3,. �,�� « . _ . . �IJ i 1 rIlr�j)A � � jt�' jA , l� MA ' i j � t � � ,f 1 t, , 1 S � . : • '7 y ,K l Sa' y. � 5 � 1 ��. �1 � 7 ,P Q�r i� , 1 I - a'�. r • K i � � � rr 1 1 1 5,i `lrYj ': I x,y + ni 1 � � • , 51l}ri'(( yr , Q�I kkkk 6 s. L � : , I ' 4ftt.r�.a " . • ay izrty, . C . 1r' • 4 � t ♦ r LeIf •Z Not AA N r 1tXNp ♦�, - .� ' ,DIY � r' ,1 � � sp � �� Ali1 �y y� 7 r , r t , At to r ti Y r . - ;b n - It 8 ORDINANCE NO. 128, 2007 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE CONVEYANCE OF 143 ACRES OF LAND TO COLORADO STATE UNIVERSITY RESEARCH FOUNDATION IN EXCHANGE FOR 267 ACRES OF LAND ADJACENT TO RESERVOIR RIDGE NATURAL AREA WHEREAS, Colorado State University Research Foundation("CSURF") is a private,not- for-profit Colorado Corporation established in 1941 to aid and assist Colorado State University(as well as Colorado State University Pueblo) in its research and educational efforts; and WHEREAS, CSURF has proposed to convey to the City 267 acres of land adjacent to the City's Reservoir Ridge Natural Area, as shown on Exhibit "A", attached hereto and incorporated herein by this reference(the "Foothills Property"),which the City desires to acquire as an addition to the City's Natural Areas system; and WHEREAS, in exchange for CSURF's conveyance of the Foothills Property, CSURF has proposed to acquire from the City a 143-acre portion of an area originally acquired by the City's Wastewater Utility for wastewater purposes, commonly referred to as the "Resource Recovery Farm,"more particularly described on Exhibit"B", attached hereto and incorporated herein by this reference (the"RRF Property"); and WHEREAS, in 2003, 151 acres of the RRF Property was transferred from the Wastewater Utility to the Natural Areas program in exchange for payments to the Wastewater Utility Fund for the value of that land,and CSURF has requested that the City convey to it a 118-acre portion of that property as part of the consideration for the Foothills Property; and WHEREAS, in 2006, another 25 acres of the RRF Property was transferred to the City's General Fund by the Wastewater Utility for general municipal purposes in exchange for a payment to the Wastewater Utility Fund for the value of that land,and CSURF has requested that the City also convey that parcel to the City as further consideration for the Foothills Property; and WHEREAS, CSURF has agreed to accept the conveyance of these two parcels, which together constitute the RRF Property, under a deed that will restrict the development of the RRF Property and retain for the City a right of first refusal if CSURF seeks to convey the RRF Property to a tax-exempt entity in the future; and WHEREAS,the City's Real Estate Services staff has determined that the Foothills Property and the RRF Property have equivalent values of approximately$4 million each; and WHEREAS, in light of the mutual benefits of an exchange of these properties, the staff of the City and CSURF have negotiated an exchange agreement, a copy of which, dated October 5, 2007, is on file and available for public inspection in the Office of the City Clerk (the "Exchange Agreement"), which agreement calls for CSURF to convey to the City the Foothills Property in exchange for the conveyance by the City to CSURF of the RRF Property, subject to the deed restrictions and reservations described above and in the Exchange Agreement; and WHEREAS, the acquisition of the Foothills Property for the City's Natural Areas program would be consistent with the Land Conservation and Stewardship Master Plan adopted by the Council in Resolution 2004-092 on July 20, 2004; and WHEREAS, under Section 23-111 of the Code of the City of Fort Collins, the Council is authorized to sell or otherwise dispose of any and all interests in real property owned in the name of the City, provided that Council first finds by ordinance that the sale or 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 conveyance of the RRF Property to CSURF, subject to the deed restrictions described herein and further subject to the terms and conditions contained in the Exchange Agreement, as such Agreement may be modified under Section 2 below, is in the best interests of the City of Fort Collins. Section 2. That the Mayor is hereby authorized to execute such deeds, agreements and other documents of conveyance as provided in the Exchange Agreement, subject to such modifications, amendments or additions thereto as may be determined by the City Manager, in consultation with the City Attorney,to be necessary or appropriate to protect the interests of the City, including any necessary corrections to the legal descriptions shown thereon that do not materially increase the size or change the character of the intended properties to be exchanged. Introduced, considered favorably on first reading, and ordered published this 16th day of October,A.D. 2007, and to be presented for final passage on the 6th day of November,A.D. 2007. Mayor ATTEST: City Clerk -2- Passed and adopted on final reading on the 6th day of November, A.D. 2007. Mayor ATTEST: City Clerk -3-