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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 05/21/2013 - RESOLUTION 2013-048 AUTHORIZING THE LEASE OF CITY-DATE: May 21, 2013 STAFF: Helen Matson AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 19 SUBJECT Resolution 2013-048 Authorizing the Lease of City-owned Property at 906 East Stuart Street to Fort Collins Waldorf Education Association, Inc. for up to Two Years. EXECUTIVE SUMMARY Since August 2006, the City has leased 906 East Stuart to Fort Collins Waldorf Education Association, Inc., known as River Song Waldorf School. River Song Waldorf School continues to meet the national Community Development Block Grant Funding (“CDBG”) criteria by serving a majority (51% or more) of low-moderate income clients below 80% of the Area Median Income. This Resolution authorizes the lease of the property to River Song Waldorf School for an additional two years. BACKGROUND / DISCUSSION The property at 906 East Stuart was acquired by the City in 1985 for use as a child care facility. CDBG funding was used to purchase the property. City properties purchased with CDBG funding are restricted to a nominal rental rate and must be used by non-profit organizations that meet the CDBG criteria. 906 East Stuart was a private residence at the time of purchase. The building contains a total of 2,071 square feet. The ground floor contains 1,687 square feet and is the main area of use for the school. The second floor, containing 384 square feet, is only accessible from an outside stairway entrance and is used for its office area and storage. The lot size is 0.3 acres. The condition of this facility is fair. River Song Waldorf School has been leasing the property since August 2006. It operates a year-round early childhood program, and other associated uses, for pre-kindergarten children. Due to the requirements from CDBG, the rent for this facility is $5 per year. The market rent would be $1,200 to $1,350 per month if this property was rented as a private residence. The tenant is responsible for utilities, maintenance, and improvements. The City is not responsible for any maintenance expense during the lease. River Song Waldorf School has been a good tenant and has taken good care of the property. In addition to its routine maintenance expenses, it has also replaced the furnace and painted the exterior at its cost. FINANCIAL / ECONOMIC IMPACTS The Tenant is responsible for all maintenance, repair, and necessary upgrades, including, but not limited to, all landscaping maintenance and upkeep (including trees), snow removal, interior and exterior painting, appliances, building systems upkeep, etc. The Tenant pays all utility costs. The Tenant pays $5 per year to the City for leasing the property. STAFF RECOMMENDATION Staff recommends adoption of the Resolution. ATTACHMENTS 1. Location Map RESOLUTION 2013-048 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE LEASE OF CITY-OWNED PROPERTY AT 906 EAST STUART STREET TO FORT COLLINS WALDORF EDUCATION ASSOCIATION, INC. FOR UP TO TWO YEARS WHEREAS, the City is the owner of the property at 906 East Stuart Street, Fort Collins, Larimer County, Colorado (the “Property”), which was purchased with Community Development Block Grant (“CDBG”) funding in 1985 for use as a child-care facility; and WHEREAS, pursuant to a Request for Proposals issued by the City’s Purchasing Department in 2006, Fort Collins Waldorf Education Association, Inc. (“River Song Waldorf School”) proposed to lease the Property for the purpose of early childhood programming and other associated uses; and WHEREAS, on August 15, 2006, the City Council approved Resolution 2006-087, authorizing the lease of the Property to River Song Waldorf School for up to two years; and WHEREAS, on June 3, 2008, the City Council approved Resolution 057, 2008, authorizing the lease of the Property to River Song Waldorf School for up to five years; and WHEREAS, the lease of the Property by River Song Waldorf School benefits low- to moderate-income families in Fort Collins by providing them the opportunity to engage in Waldorf education, which use of the Property is consistent with the objectives of the Community Development Block Grant; and WHEREAS, City staff recommends that River Song Waldorf School be allowed to continue leasing the Property; and WHEREAS, the Lease Agreement will provide for a two-year lease term in exchange for payment of nominal rent in the amount of $5.00 per year and compliance with certain conditions and restrictions set forth therein; and WHEREAS, under Section 23-114(a) of the Code of the City of Fort Collins, the City Council is authorized to lease, for a definite term of two years or less, any and all interests in real property owned in the name of the City, provided that the City Council first finds, by resolution, that the lease is in the best interests of the City. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the Council hereby finds that leasing the Property at 906 East Stuart Street under the terms listed above is in the best interests of the City of Fort Collins. Section 2. That the City Manager is authorized to execute a Lease Agreement for the Property consistent with the terms of this Resolution, along with such other terms and conditions as the City Manager, in consultation with the City Attorney, determines are necessary or appropriate to protect the interests of the City. Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 21st day of May A.D. 2013. Mayor ATTEST: City Clerk