HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 08/20/2002 - FIRST READING OF ORDINANCE NO. 117, 2002, AUTHORIZ AGENDA ITEM SUMMARY ITEM NUMBER: 25
FORT COLLINS CITY COUNCIL DATE: August 20, 2002
STAFF: Steve Comstock
SUBJECT:
First Reading of Ordinance No. 117, 2002, Authorizing the Sale of Approximately 160 Acres of
Land Known as the Jacoby Farm to Larimer County and Authorizing the Extension of an Existing
Agricultural Lease on the Property.
RECOMMENDATION:
Staff and the Water Board recommend adoption of the Ordinance on First Reading.
FINANCIAL IMPACT:
The City's Wastewater Utility Fund will receive payment in the amount of $1,920,000 for the
property. The actual appraised value for the property was$2,180,000;however,that appraised value
includes 25 shares of Colorado Big Thompson water($260,000 value), which will be retained by
the Utilities. Larimer County will pay $720,000 and $1,200,000 will be paid with GOCO grant
funds.
EXECUTIVE SUMMARY:
This Ordinance authorizes the sale of 160 acres of land known as the Jacoby Farm to Latimer
County to become part of the County Open Lands Program. The site is located east of the Ptarmigan
Country Club in Windsor. The sale price is$1,920,000 based on the appraised value of the property
less the value of retained water rights. If approved,the sale is expected to take place before the end
of the year. The Ordinance also authorizes the extension of the current agricultural lease for one
year.
BACKGROUND:
On June 7, 1990,the City purchased a 160-acre parcel of land located approximately two miles east
of I-25 on Colorado Highway 392 along the Poudre River,as a possible site for a future wastewater
treatment plant. The Regional Water/Wastewater Planning Study prepared in accordance with
Section 201 of the federal Clean Water Act in 1997 indicated that a regional wastewater treatment
facility would not be needed for the area. Consequently, the Utilities have determined that there is
no longer a use for the property and that the site may be sold.
During the past few years potential buyers interested in the Jacoby Farm property have approached
the City. The City Manager asked that this parcel be offered to other City departments before any
DATE: August 20, 2002 2 f ITEM NUMBER: 25
outside sale discussions began. City Natural Resources Department("NRD")staff initially indicated
that NRD was interested in purchasing the parcel. An outside appraisal was done in August of 2001.
After discussions with the County regarding the best use of potential GOCO grant monies, the
Natural Resources Advisory Board recommended that the property instead be made available for
Latimer County to purchase it as part of its Open Lands Program.
This Ordinance also authorizes the extension of the current agricultural lease for one year. Since
the City purchased the property in 1990 the City has maintained an agricultural lease. The lease
expires early in 2003. Staff from both the City and County, as well as the lessee,are recommending
as part of the sale agreement that the current lease be extended for one year with the same terms
prior to the conveyance of the property. This would allow the County to take ownership of the
property while maintaining a relationship with the current lessee and would allow the County time
to get a management plan and lease process in place. This arrangement also provides the current
lessee security for its business during the transition.
ORDINANCE NO. 117, 2002
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE SALE OF APPROXIMATELY 160 ACRES OF
LAND KNOWN AS THE JACOBY FARM
TO LARIMER COUNTY AND AUTHORIZING
THE EXTENSION OF AN EXISTING AGRICULTURAL LEASE
ON THE PROPERTY
WHEREAS, the City of Fort Collins is the owner of that certain real property located in
Latimer County,Colorado,known as Jacoby Farm,which was purchased by the Wastewater Utility
for Wastewater Utility purposes, more particularly described as follows:
The Southwest Quarter of Section 13,Township 6 North, Range 68 West of the 6'
Prime Meridian, Latimer County, Colorado, excluding an portion contained in that
certain Deed recorded February 11, 1959, in Book 1086, Page 272,Larimer County
Colorado,consisting of approximately 160 acres("Jacoby Farm"or the"Property");
and
WHEREAS,Jacoby Farm,which is located approximately two miles east of Interstate 25 on
Colorado highway 392 along the Poudre River, was originally purchased by the City in 1990 as a
possible site for a future regional wastewater treatment plant; and
WHEREAS, regional water/wastewater planning completed since the time of purchase of
Jacoby Farm has indicated that a regional wastewater treatment facility is not needed in that vicinity;
and
WHEREAS, City staff has determined that there is no longer a wastewater related use
appropriate for Jacoby Farm; and
WHEREAS, although City Natural Resources Department staff originally expressed an
interest in acquiring Jacoby Farm for use in the City's Natural Areas Program,it was determined that
the acquisition of the Property by Larimer County for its Open Lands Program would enhance the
benefits associated with the transfer; and
WHEREAS, the appraised value of Jacoby Farm (including the value of the 25 shares of
Colorado-Big Thompson water that had not previously been severed from the Property--the "CBT
Water") is $2,180,000; and
WHEREAS, the appraised value of the CBT Water is $260,000; and
WHEREAS, the County has agreed in principle to acquire Jacoby Farm without acquiring
the CBT Water, which the City will retain, for the amount of $1,920,000, which represents the
difference between the appraised value of the Property and the value of the retained CBT Water; and
WHEREAS,on March 4, 1998,the City entered into a lease of Jacoby Farm to Royal Vista
Equine,Inc.(the"Tenant"),for a potential term extending through February 28,2003 (the"Lease"),
a copy of which is on file and available for public review in the Office of the City Clerk; and
WHEREAS,the Lease allows for the use of Jacoby Farm for cultivation of alfalfa and grass
mix and for livestock grazing,and requires that the City provide to the Tenant certain raw water for
use on the Property; and
WHEREAS,staff is not aware of any defaults or issues associated with the Lease or the use
of Jacoby Farm by the Tenant, and City staff and Larimer County staff have recommended that, in
order to provide for continuity of the leasehold interest and eliminate the need for a new County
lease prior to the expiration of the Lease, a one-year extension of the Lease be entered into by the
City prior to conveyance of Jacoby Farm, continuing at an annual lease rate of$6,000; and
WHEREAS,Larimer County has proposed to take title to Jacoby Farm subject to the Lease
as extended through February 2004 in accordance with this Ordinance; and
WHEREAS, Section 23-111 of the City Code provides that the City Council is authorized
to sell, convey or otherwise dispose of real property owned by the City, including leasing of the
property,provided the Council first finds by ordinance that any sale or disposition of real property
owned by the City 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 neither the above described conveyance of Jacoby Farm nor the above
described extension of the Lease for an additional one-year term will materially impair the viability
of the City's wastewater utility as a whole,and that each will be for the benefit of the City's citizens,
and in the best interests of the City.
Section 2. That the Mayor is hereby authorized to execute such documents of
conveyance or commitment as are necessary to convey Jacoby Farm to Larimer County, consistent
with the terms and conditions described above.
Section 3. That the Mayor is hereby authorized to execute an agreement extending the
term of the Lease through February 2004,consistent with the terms and conditions described above.
• Introduced, considered favorably on first reading, and ordered published this 20th day of
August, A.D. 2002, and to be presented for final passage on the 3rd day of September, A.D. 2002.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading this 3rd day of September, A.D. 2002.
Mayor
ATTEST:
City Clerk
•
Community Planning and Environmental Services
Natural Resources Department
Citv of Fort Collins
MEMORANDUM
DATE: April 3, 2002
TO: Mayor and Councilmembers
John F. Fischbach, City Manager
FROM: Randy Fischer for the Natural Resources Advisory Boardl�s
RE: Support for Jacoby Sale
The Natural Resources Advisory Board supports the sale of the Jacoby Farm, currently
owned by City of Fort Collins Utilities,to Larimer County Open Lands, contingent upon
City approval of a management plan prior to closing. Sale of the property to the County
meets several goals.
It will keep the land in open space.
• The property is near Windsor, and as such, it makes sense for the County to
own and manage the property.
• The County is responsible for constructing the Poudre River Trail in this area;
this property can provide right of way for the trail.
The County will be using up to S1,200,000 from the PoudreBig Thompson GOCO
Legacy Project grant to assist in purchasing the property. The funding was initially slated
for a couple of other properties along the river. As it turns out, those properties will not
be eligible for GOCO funds because of GOCO's restrictions relative to gravel mining.
GOCO staff is of the opinion that the Jacoby property is a desirable substitute for the
original properties.
Please feel free to contact us with questions or comments regarding our recommendation.
Randy Fischer, NRAB Chair
226-5383
karandna,frii.com
281 North College Avenue • P.O.Box 580 • Fort Collins,CO 80522-0580 • (970)221-6600 • FAX(970)224-6177
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