HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 09/17/2013 - SECOND READING OF ORDINANCE NO. 124, 2013, AUTHORIDATE: September 17, 2013
STAFF: Lindsay Kuntz, Craig Foreman
Marty Heffernan
AGENDA ITEM SUMMARY
FORT COLLINS CITY COUNCIL 9
SUBJECT
Second Reading of Ordinance No. 124, 2013, Authorizing a Patio Lease and Conveyance of an Access Easement
on City Property to 201 S College, LLC.
EXECUTIVE SUMMARY
This Ordinance, unanimously adopted on First Reading on September 3, 2013, authorizes the conveyance of a patio
lease and a permanent access easement on Oak Street Plaza to the 201 S. College, LLC owners of the lower level
of Old Post Office Building adjacent to the park. The owner of the lower unit of the building has requested a patio
lease on a portion of the City property adjacent to the north side of their building in anticipation of leasing the unit as
a restaurant. The lease area will be used by the unit owner and their tenant for dining and art display purposes only
and will be limited to a 10-year term with an option to renew for up to two (2) additional 5-year terms. In addition, the
owner has requested an access easement across the park leading from their north entrances out to College Avenue.
This access easement will provide the owner and their tenant legal access in and out of the lower unit.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on Second Reading.
ATTACHMENTS
1. Copy of First Reading Agenda Item Summary - September 3, 2013
(w/o attachments)
COPY
COPY
COPY
ATTACHMENT 1
DATE: September 3, 2013
STAFF: Lindsay Kuntz, Craig Foreman
Marty Heffernan
AGENDA ITEM SUMMARY
FORT COLLINS CITY COUNCIL 18
SUBJECT
First Reading of Ordinance No. 124, 2013, Authorizing a Patio Lease and Conveyance of an Access Easement on City
Property to 201 S College, LLC.
EXECUTIVE SUMMARY
The purpose of this item is to authorize the conveyance of a patio lease and a permanent access easement on Oak
Street Plaza to the owners of the Old Post Office Building adjacent to the park.
201 S College, LLC is the owner of the lower level of the building located at 201 South College Avenue, also known
as the Old Post Office Building. The building also houses the Museum of Contemporary Art on the main floor. The
building is located directly adjacent to Oak Street Plaza Park. The owner of the lower unit of the building has
requested a patio lease on a portion of the City property adjacent to the north side of their building in anticipation of
leasing the unit as a restaurant. The lease area will be used by the unit owner and their tenant for dining and art
display purposes only and will be limited to a 10-year term with an option to renew for up to two (2) additional 5-year
terms. In addition, the owner has requested an access easement across the park leading from their north entrances
out to College Avenue. This access easement will provide the owner and their tenant legal access in and out of the
lower unit.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
BACKGROUND / DISCUSSION
The building at 201 South College is historically known as the “Old Post Office Building” and is located south of the
Oak Street Plaza Park (the “Park”). This entire building was owned by the Fort Collins Museum of Contemporary Art
prior to being converted into three condominium units in 2012. The Museum of Contemporary Art continues to own
and occupy the main floor, and the lower unit and upper unit were sold to 201 S College, LLC.
Patio Easement
201 S College, LLC, represented by Brinkman Partners (“Brinkman”), has requested a patio lease adjacent to its
building for use by the owner and its future restaurant tenant. The future tenant, Blue Agave Restaurant, will use the
patio easement area for dining and art display purposes only.
The existing area of the proposed patio is currently occupied by landscaping and sidewalk improvements owned and
maintained by the City. The proposal presented by Brinkman would be to convert this area into a gated and fenced
patio dining area. The owner would be responsible for all patio and landscaping improvements installation and
maintenance, snow removal, cleaning, and general maintenance of the patio area. The City would reserve the right
to terminate the lease should the City receive complaints regarding noise and/or nuisances. The City may also
terminate the lease should the use of the patio area change from the intended use.
Parks Department staff has met on site with Brinkman to discuss the proposed patio improvements and use. City staff
determined that the proposal will not interfere with the use of the remaining property or negatively impact the aesthetics
of the Park; however, Parks staff recommends that the easement be limited to a 10-year term with the option to renew
for up to two (2) additional 5-year terms. Renewal will be by mutual agreement. At the end of the term of the
easement, the City will become the owner of the patio improvements and Brinkman would be required to leave the
area in a condition comparable or better than the adjacent Park.
COPY
COPY
COPY
September 3, 2013 -2- ITEM 18
Access Easement
The main entrances to the lower level of the building located at 201 South College Avenue are both located on the
north face of the building leading out to the Park. The boundary for the Park extends to the edge of the building face.
In 2006, Oak Street right-of-way was vacated in the area of the Park and the land reverted to the neighboring property
owners. The owners then agreed to convey the Park property back to the City so the City would be the fee owner of
the entire Park. MOCA also agreed to convey to the City a strip of land between the former right-of-way and the wall
of the Old Post Office building, from the northwest corner of the building, along the north wall, and around the northeast
corner of the building to the main stairs. It was not apparent at the time of this conveyance that the future users of the
lower level of the Old Post Office Building would require access across the Park to reach the nearby public rights-of-
way of Oak Street and College Avenue. Since the building is now separate condominium units, this has created a lack
of legal access for the owner of the lower unit of the building. This was not the intent of the City when the conveyance
in 2006 was completed. As such, City staff has determined it necessary to convey a permanent access easement
across the Park for the users of the lower level of the building. Since the access route across the park to the lower
unit could vary, Staff is proposing the access easement cover the entire Park. The access easement will cross
existing sidewalk areas and will not require any modifications or improvements to be made. The main purpose of this
conveyance will be to legally establish an access to the lower unit since it was not reserved at the time of the original
conveyance to the City in 2006. Parks staff has determined that the conveyance of this easement will not negatively
impact the property or interfere with the intended use of this area of the Park.
FINANCIAL / ECONOMIC IMPACTS
The owner will pay Real Estate Services a fee of $1,000 for staff time for processing the easement request.
Real Estate Services (“RES”) has estimated the lease value for the land of the Oak Street Plaza property to be
approximately $3,300 per year for the 797 square foot lease area. RES arrived at this value after consulting with the
Larimer County Assessor’s Office and a local real estate appraiser.
For the conveyance of the access easement, City staff recommends the City convey this easement at no cost due to
the fact that this access right should have been reserved in the original conveyance of the property to the City in 2006.
In conclusion, the total compensation for the easement is calculated as follows:
Real Estate Services Processing Fee: $1,000
Patio Lease: $3,300 per year
Permanent Access Easement: $0
ATTACHMENTS
1. Location map
2. Patio Lease area detail
ORDINANCE NO. 124, 2013
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING A PATIO LEASE AND CONVEYANCE OF AN ACCESS
EASEMENT ON CITY PROPERTY TO 201 S COLLEGE, LLC
WHEREAS, in the mid 1970s a portion of Oak Street directly west of College Avenue
was closed to vehicular traffic and converted into a pedestrian plaza (the “Plaza”); and
WHEREAS, in 2006, the City entered into an agreement with the property owners
adjacent to the Plaza; and
WHEREAS, under the agreement, the adjacent owners agreed that if the City vacated the
right-of-way underlying the Plaza, the owners would convey the vacated right-of-way back to
the City, so that the City would own the fee simple title to the Plaza and could manage it as an
urban park instead of as right-of-way; and
WHEREAS, in 2006 the City Council passed ordinance No. 134, 2006, vacating that
portion of Oak Street; and
WHEREAS, the adjacent property owners, the Fort Collins Museum of Contemporary
Art (“MCA”) on the south and the Nojoumi family on the north, then conveyed the vacated
right-of-way back to the City; and
WHEREAS, in a separate transaction, MCA also conveyed to the City a strip of land
between the north wall of MCA’s building at 201 South College (the “Old Post Office”) and the
former right-of-way; and
WHEREAS, the property now owned by the City and known as Oak Street Plaza Park is
described on Exhibit “A”, attached and incorporated herein by this reference (the “City
Property”); and
WHEREAS, the Old Post Office has since been sold and converted into three
condominium units; and
WHEREAS, 201 S College, LLC, (the “Owner”) is the owner of the lower unit of the Old
Post Office, described as Unit 100, Old Post Office Condos (the “Owner’s Property”), located
adjacent to the City Property; and
WHEREAS, the Owner’s Property is accessible through two doors in the lower level of
the Old Post Office, one near the northwest corner of the building, and the other at the northeast
corner of the building; and
WHEREAS, the Owner has requested a patio lease (the “Lease”) on the City Property, in
the area outside of the northwest door, for the benefit of a future restaurant tenant; and
WHEREAS, the area the Owner wishes to lease consists of 797 square feet, as described
on Exhibit “B”, attached and incorporated herein by reference (the “Lease Area”); and
WHEREAS, the proposed Lease Area will consist of a fenced and gated patio area that
would be used for dining, landscaping and art display purposes; and
WHEREAS, the Owner would pay the City $3,300.00 per year as rent for the Lease Area
and a one-time fee of $1,000 for staff processing time; and
WHEREAS, the lease term would be for a period of ten years with an option to renew for
two additional 5-year terms; and
WHEREAS, the lease would be terminable by the City if the City observes or receives
complaints about noise or nuisance problems in the Lease Area that the Owner does not
satisfactorily control, or if the Owner’s Property is rented for some purpose other than a
restaurant; and
WHEREAS, the Owner has also requested an access easement over the City Property to
provide legal access from the public rights-of-way across the City Property to the entrances to
the Owner’s Property; and
WHEREAS, the Access Easement will cover the entire City Property, as it is not
reasonable to expect the Owner and the Owner’s tenants and invitees to follow a particular path
across the City Property to reach the Owner’s Property; and
WHEREAS, City staff is recommending that the Owner not be charged for the
conveyance of the Access Easement, as it was not the City’s intent to eliminate the legal access
to the Owner’s Property when MCA conveyed its portion of the City Property to the City in
2006, and it would have been appropriate for MCA to reserve an access easement from that
conveyance; and
WHEREAS, the Access Easement will not create any impact on the City Property that is
different from or greater than the current use by the general public; and
WHEREAS, Section 23-111(a) of the City Code provides that 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 sale or
other 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 leasing of the Lease Area and the conveyance of the Access
Easement on the City Property to 201 S College, LLC, as provided herein are in the best interests
of the City, as the City will receive revenue from the lease of the Lease Area.
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Section 2. That the Mayor is hereby authorized to execute a negotiated lease
agreement for the Lease Area and such documents as are necessary to convey the Access
Easement to 201 S College, LLC, on terms and conditions consistent with this Ordinance,
together with such additional 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,
including, but not limited to, any necessary changes to the legal descriptions of the Lease Area
or the Access Easement, as long as such changes do not materially increase the size or change
the character of the Lease Area or Access Easement.
Introduced, considered favorably on first reading, and ordered published this 3rd day of
September, A.D. 2013, and to be presented for final passage on the 17th day of September, A.D.
2013.
_________________________________
Mayor
ATTEST:
_____________________________
Chief Deputy City Clerk
Passed and adopted on final reading on the 17th day of September, A.D. 2013.
_________________________________
Mayor
ATTEST:
_____________________________
City Clerk
-3-
Exhibit “A”
City Property Description
That portion of the east 134.00 feet of Oak Street, lying west of the West Right of Way line of
College Avenue and abutting that portion of Lot 16, Block 112, City of Fort Collins, Larimer
County, Colorado that is owned by Grantor, from the northern lot line of Lot 16 to the centerline
of Oak Street, as shown on the Original Plat of the City of Fort Collins, in Larimer County, State
of Colorado.
AND ALSO:
The east 134.00 feet of Oak Street, lying west of the West Right of Way line of College Avenue
and abutting Lot 1, Block 111, City of Fort Collins, Larimer County, Colorado, as shown on the
Original Plat of the City of Fort Collins, from the southern lot line of Lot 1 to the centerline of
Oak Street, in Larimer County, State of Colorado.
AND ALSO:
Two tracts of land located in the Southeast quarter of Section 11, Township 7 North, Range 69
West of the Sixth Principal Meridian, City of Fort Collins, Larimer County, Colorado, the said
tracts are also located in Lots 13 thru 16 of Block 112 City of Fort Collins, being more
particularly described as follows;
Considering the east line of the said Block 112 as bearing South 00 degrees 19 minutes 02
seconds West based upon found 7 feet by 7 feet brass cap block corner off-sets, GPS observation
and City of Fort Collins coordinate base, and with all bearings contained herein relative thereto;
Commencing at the northeast corner of Block 112;
THENCE along the north line of the said Block 112, North 89 degrees 39 minutes 01 seconds
West for a distance of 82.85 feet to the TRUE POINT OF BEGINNING OF THIS
DESCRIPTION;
THENCE continuing along the said north line of Block 112, North 89 degrees 39 minutes 01
seconds West for a distance of 51.11 feet;
THENCE leaving the said north line, South 00 degrees 19 minutes 02 seconds West for a
distance of 11.66 feet to the westerly extension of the north line of the granite face of the existing
building (being the old Post Office building) on the said Lots 13 thru 16 Block 112;
THENCE along the said westerly extension, South 89 degrees 47 minutes 38 seconds East for a
distance of 7.03 feet;
THENCE leaving the said extension, North 00 degrees 12 minutes 22 seconds East for a distance
of 2.00 feet;
THENCE South 89 degrees 47 minutes 38 seconds East for a distance of 11.64 feet;
THENCE South 00 degrees 12 minutes 22 seconds West for a distance of 2.00 feet to the said
north building face;
THENCE along the said building face, South 89 degrees 47 minutes 38 seconds East for a
distance of 32.51 feet;
THENCE leaving the said building face, North 00 degrees 03 minutes 13 seconds West for a
distance of 11.53 feet to the point of beginning. Containing 570 square feet more or less.
TOGETHER WITH:
With the above described basis of bearings;
Commencing at the said northeast corner of Block 112, the said northeast corner is also the
TRUE POINT OF BEGINNING OF THIS DESCRIPTION;
THENCE along the east line of the said Block 112, South 00 degrees19 minutes 02 seconds
West for a distance of 34.54 feet;
THENCE leaving the said east line, North 89 degrees 40 minutes 58 seconds West for a distance
of 2.69 feet;
THENCE South 00 degrees 20 minutes 11 seconds West for a distance of 2.41 feet;
THENCE North 89 degrees 42 minutes 47 seconds West for a distance of 19.30 feet;
THENCE North 00 degrees 19 minutes 09 seconds East for a distance of 27.60 feet;
THENCE North 89 degrees 47 minutes 38 seconds West for a distance of 9.32 feet
THENCE South 00 degrees 12 minutes 22 seconds West for a distance of 2.00 feet to the above
described north granite face of the existing building;
THENCE along the said north building face, North 89 degrees 47 minutes 38 seconds West for a
distance of 30.31 feet;
THENCE leaving the said building face, North 01 degrees 03 minutes 29 seconds East for a
distance of 11.48 feet to the north line of the said Block 112;
THENCE along the said north line of Block 112, South 89 degrees 39 minutes 01 seconds East
for a distance of 61.48 feet to the point of beginning. Containing 1240 square feet more or less.
DESCRIPTION: PATIO LEASE AREA
A parcel located in the Southeast Quarter of Section 11, Township 7 North, Range 69 West of
the 6
th
P.M., City of Fort Collins, County of Larimer, State of Colorado being more particularly
described as follows:
Considering the North line of Block 112, City of Fort Collins as bearing North 89° 55’ 07” West
and with all bearings contained herein relative thereto:
Commencing at the Northeast corner of said Block 112; thence along said North line, North 89°
55’ 07” West, 79.48 feet to the POINT OF BEGINNING; thence, North 89° 55' 07" West, 3.36
feet; thence, South 00° 15' 35" East, 11.53 feet; thence, North 90° 00' 00" West, 32.51 feet;
thence, North 00° 00' 00" West, 2.00 feet; thence, North 90° 00' 00" West, 11.64 feet; thence,
South 00° 00' 00" East, 2.00 feet; thence North 90° 00' 00" West, 0.44 feet; thence along a non-
tangent curve concave to the left having a central angle of 32° 30' 49" with a radius of 17.57 feet,
an arc length of 9.97 feet and the chord of which bears North 15° 35' 17" West, 9.84 feet; thence
along a curve concave to the right having a central angle of 34° 47' 34" with a radius of 18.42
feet, an arc length of 11.18 feet and the chord of which bears North 16° 23' 10" West, 11.01 feet;
thence along a non-tangent curve concave to the right having a central angle of 28° 55' 32" with
a radius of 29.15 feet, an arc length of 14.72 feet and the chord of which bears South 81° 13' 32"
East, 14.56 feet; thence along a curve concave to the left having a central angle of 48° 10' 16"
with a radius of 22.00 feet, an arc length of 18.50 feet and the chord of which bears North 89° 09'
06" East, 17.96 feet; thence, North 65° 03' 59" East, 5.10 feet; thence, South 20° 32' 27" East,
3.93 feet; thence, North 66° 43' 10" East, 1.47 feet; thence along a non-tangent curve concave to
the left having a central angle of 90° 10' 08" with a radius of 7.76 feet, an arc length of 12.21 feet
and the chord of which bears South 73° 54' 22" East, 10.99 feet; thence along a curve concave to
the right having a central angle of 10° 37' 23" with a radius of 20.60 feet, an arc length of 3.82
feet and the chord of which bears North 62° 59' 11" East, 3.81 feet; thence along a non-tangent
line, South 00° 14' 39" West,4.29 feet to the POINT OF BEGINNING.
The above described parcel contains 797 square feet more or less and is subject to all
easements and rights-of-way now on record or existing.
7-1-13
379-027.02
Exhibit "B"
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Exhibit "B"
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