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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 09/03/2013 - SECOND READING OF ORDINANCE NO. 118, 2013, AUTHORIDATE: September 3, 2013 STAFF: Kayla Ballard Helen Matson AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 15 SUBJECT Second Reading of Ordinance No. 118, 2013, Authorizing the Lease of City-owned Property at 328 West Mountain Avenue and 108 North Meldrum Street to Poudre Landmarks Foundation, Inc. EXECUTIVE SUMMARY The purpose of this item is to continue leasing the Avery House and Carriage House. This Ordinance, unanimously adopted on First Reading on August 20, 2013, authorizes the lease of the Avery House and the Carriage House, located at 328 West Mountain Avenue and 108 North Meldrum Street, respectively, to the Poudre Landmarks Foundation (“The PLF”). The term of the Lease is for fifteen (15) years, with a yearly lease payment of $25, or $375 for the full term of the lease. The PLF maintains the interior of the buildings and the City will continue to pay all utility costs, as budgeted. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. Copy of First Reading Agenda Item Summary - August 20, 2013 (w/o attachments) COPY COPY COPY ATTACHMENT 1 DATE: August 20, 2013 STAFF: Kayla Ballard Helen Matson AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 23 SUBJECT First Reading of Ordinance No. 118, 2013, Authorizing the Lease of City-owned Property at 328 West Mountain Avenue and 108 North Meldrum Street to Poudre Landmarks Foundation, Inc. EXECUTIVE SUMMARY The purpose of this item is to continue leasing the Avery House and Carriage House. Poudre Landmarks Foundation (“The PLF”) wishes to continue leasing from the City the Avery House and the Carriage House, located at 328 West Mountain Avenue and 108 North Meldrum Street, respectively. The term of the Lease shall be for fifteen (15) years. The yearly lease payment will be $25 or $375 for the full term of the lease. The PLF maintains the interior of the buildings and the City will continue to pay all utility costs, as budgeted. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION The City of Fort Collins is the owner of the buildings known as the Avery House located at 328 W. Mountain Avenue and the Carriage House located at 108 N. Meldrum Street. The City and The PLF have worked together since the mid 1970’s to historically restore and renovate the Avery House for the benefit and education of the citizens of Fort Collins. The Avery House was purchased by the City in 1974. The Carriage House was purchased in 1988 and restoration activities were completed. Under this Lease, The PLF will continue to use these facilities as a house museum and will continue with restoration activities consistent with the goals and objectives of historic preservation. The PLF has been leasing these properties since 1976. This Lease term will be for fifteen (15) years, commencing October 1, 2013 and expiring September 30, 2028. The PLF will pay the City a nominal rent in the amount of $25 per year. FINANCIAL / ECONOMIC IMPACTS The financial impact to the City will remain the same as under the previous leases. The yearly rent will be increased from $1 to $25. All utility costs will be paid by the City which is budgeted in the General Fund. The PLF will be responsible for maintaining the interior of the buildings. ATTACHMENTS 1. Location map ORDINANCE NO. 118, 2013 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE LEASE OF CITY-OWNED PROPERTY AT 328 WEST MOUNTAIN AVENUE AND 108 NORTH MELDRUM STREET TO POUDRE LANDMARKS FOUNDATION, INC. WHEREAS, the City is the owner of the properties located at 328 West Mountain Avenue, known as the Avery House, and 108 North Meldrum Street, known as the Carriage House, more particularly described as Part of Lot 24, all of Lots 25, 26, 27 and the West 12.5 feet of Lot 28, Block 41, City of Fort Collins, County of Larimer, State of Colorado, together with the vacant alley at the rear of Lots 26, 27, and 28 (the “Property”); and WHEREAS, the City purchased the Avery House in 1969, and the City and the Poudre Landmarks Foundation, Inc. (“PLF”) have been working together since the mid-1970s to restore and renovate the Avery House for the benefit of the citizens of Fort Collins; and WHEREAS, the City and PLF have also completed restoration activities on the Carriage House, which was purchased by the City in 1988; and WHEREAS, on October 6, 1998, the City Council passed Ordinance No. 158, 1998, authorizing a fifteen-year lease of the Property to PLF (the “1998 Lease”); and WHEREAS, the conditions of the 1998 Lease included a requirement that PLF make substantial repairs and renovations to the Property to help restore and preserve its historic structures, and that PLF operate the Property as a museum, open to the public, with a conservation area for historic collections, a display of items of historical interest, and historical education programs for the citizens of the City; and WHEREAS, PLF has met its obligations under the 1998 Lease and continues to maintain and operate the Property as a museum open to the public; and WHEREAS, the 1998 Lease expires this year, and PLF has asked to renew its lease for an additional fifteen year term; and WHEREAS, the proposed lease of the Property would be on similar terms to the 1998 Lease, and a copy of the proposed Lease Agreement is on file in the Office of the City Clerk and available for inspection; and WHEREAS, the Lease Agreement provides for a fifteen-year lease term expiring in 2028, in exchange for payment of nominal rent in the amount of $25.00 per year and compliance with certain conditions and restrictions set forth therein; and WHEREAS, the PLF’s continued occupancy of the Property will help to preserve and maintain the Property and its historic values, and will allow the City to keep it open to the public as a local historical resource; and WHEREAS, under Section 23-111(a) of the City Code, 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 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 proposed lease of the Property to PLF, on terms and conditions consistent with this Ordinance, is in the best interests of the City and serves a public purpose, as PLF will continue to help preserve the historic structures on the Property on the City’s behalf, and keep the Property open and available to the public as a historic resource. Section 2. That the City Manager is hereby authorized to enter into the Lease Agreement with PLF in substantially the form as is on file in the office of the City Clerk, 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, but not limited to, 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 to be leased. Introduced, considered favorably on first reading, and ordered published this 20th day of August, A.D. 2013, and to be presented for final passage on the 3rd day of September, A.D. 2013. _________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on the 3rd day of September, A.D. 2013. _________________________________ Mayor ATTEST: _____________________________ City Clerk