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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 04/15/2014 - FIRST READING OF ORDINANCE NO. 061, 2014, AUTHORIZAgenda Item 11 Item # 11 Page 1 AGENDA ITEM SUMMARY April 15, 2014 City Council STAFF Patrick Rowe, Real Estate Specialist SUBJECT First Reading of Ordinance No. 061, 2014, Authorizing the Mayor to Execute a Deed Conveying 12,391 Square Feet of City-Owned Property to Dillon Companies, Inc. EXECUTIVE SUMMARY The purpose of this Ordinance is to obtain authorization from City Council to convey to Dillon Companies, Inc. a portion of a 1-acre tract of property that was originally acquired from BNSF Railway Company for MAX Bus Rapid Transit (“MAX”) project purposes, but is no longer needed by the Project or the City as a result of a an alternative design that has been developed. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION To accommodate the MAX station located at Drake Road, the City acquired approximately 1-acre of unused railroad property from BNSF Railway Company. The City intended to develop station improvements on the southern portion of this parcel (at Drake Road) and develop MAX exclusive use parking on the remainder. Given the narrow configuration of the acquired railroad property, supplemental acquisitions were necessary from the adjacent property owner, Dillon Companies, Inc., (Dillon) to develop the exclusive use parking. Further, additional acquisitions were needed for other project needs including shared parking. In the course of negotiating with Dillon, a concern was expressed regarding potential impacts to Dillon’s planned future redevelopment of the site. In response, both parties agreed to look at design/alignment alternatives that would address Dillon’s concerns and uphold MAX project objectives. The concluded design resulted in a win-win for both the City and Dillon. The new design resolves Dillon’s redevelopment concerns, and provides the City with exclusive and shared parking that functions in a greatly improved manner and is more proximate to the station. Additionally, the new design provides the same number of exclusive use parking spots and two additional shared parking spots (the new design does not require a separate drive aisle and allows for a more efficient parking configuration). In short, the alternative design shifts the exclusive parking south, off of existing City owned property and locates it on Dillon property that is immediately adjacent to the MAX station. Similarly, the shared parking is also shifted south, and would be located across the drive isle from the exclusive parking (also on Dillon owned property). Please refer to Attachment 2, showing the acquisitions needed for the original proposed alignment versus those that are required by the earlier alternative. MAX Project Staff and Dillon are in agreement on price and terms with regard to the real estate transactions that is necessary for the design alternative and is presently working to conclude a purchase agreement that includes those terms. A key aspect of the negotiated alternative is for the City to convey the unused portion of the 1-acre parcel previously acquired from BNSF Railway Company to Dillon in exchange for Dillon conveying Agenda Item 11 Item # 11 Page 2 to the City a parcel of property immediately adjacent to the station. Authorization to convey the City Property allows the City to reach a voluntary agreement with Dillon and avoid the prospects of having to pursue the necessary property interests via eminent domain, likely be more costly for the City. FINANCIAL / ECONOMIC IMPACTS The City originally acquired the railroad property in 2012 at a purchase price of approximately $7.50/sq ft. The proposed conveyance is based on a rate of $8.40/sq ft. Authorization to convey the aforementioned City Property allows the City to reach a voluntary agreement with the property owner and avoid the prospects of having to pursue the necessary property interests via eminent domain, likely be more costly for the City. ATTACHMENTS 1. Location map (PDF) 2. Detail map - Drake MAX Dillon Exchange (PDF) ¯W Kmart BNSF RAILROAD MASON TRAIL W Drake Rd Bay Rd Max Guideway Redwing Rd Mcclelland Dr Drake Station Original Configuration City of Fort vs. Revised Collins Configuration CITY GEOGRAPHIC These and were map OF not products FORT designed and INFORMATION COLLINS or all intended underlying for general data SYSTEM are use developed by members MAP for use PRODUCTS of the by the public. City The of Fort City Collins makes for no its representation internal purposes or only, warranty dimensions, as to contours, its accuracy, property timeliness, boundaries, or completeness, or placement and of location in particular, of any its map accuracy features in thereon. labeling or THE displaying CITY OF FORT COLLINS PARTICULAR MAKES PURPOSE, NO WARRANTY EXPRESSED OF MERCHANTABILITY OR IMPLIED, WITH OR RESPECT WARRANTY TO THESE FOR FITNESS MAP PRODUCTS OF USE FOR OR THE UNDERLYING FAULTS, and assumes DATA. Any all responsibility users of these of map the use products, thereof, map and applications, further covenants or data, and accepts agrees them to hold AS the IS, City WITH harmless ALL from made and this against information all damage, available. loss, Independent or liability arising verification from any of all use data of contained this map product, herein should in consideration be obtained of by the any City's users having of these liability, products, whether or direct, underlying indirect, data. or consequential, The City disclaims, which and arises shall or not may be arise held from liable these for any map and products all damage, or the loss, use thereof or by any person or entity. Printed: April 09, 2014 ©400Feet 0 200 Path: K:\ArcMapProjects\Operation Services\Real Estate\Maps\Drake MAX Dillon Exchange.mxd Original Exclusive Parking Original Shared Parking Existing City Parcel Conveyance Area - City to Dillon Exclusive Parking - Dillon to City New Shared Parking Separate City Acquisition - 1 - ORDINANCE NO. 061, 2014 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE MAYOR TO EXECUTE A DEED CONVEYING 12,391 SQUARE FEET OF CITY-OWNED PROPERTY TO DILLON COMPANIES, INC. WHEREAS, the City has acquired an approximately one-acre strip of land along the west side of the presently existing Kmart store from the BNSF Railway Company for utilization in the development of the MAX Bus Rapid Transit project; and WHEREAS, the owner of the Kmart store, Dillon Companies, Inc. (Dillon) has been in negotiations with the City regarding the development of the MAX station located on the Dillon property at the approximate crossing of the MAX system at Drake Road; and WHEREAS, during these negotiations, the City has developed an alternative design that would allow MAX customers to park at a location much closer to the bus stop than if the one- acre tract acquired from BNSF Railway Company was used for that purpose; and WHEREAS, Dillon is supportive of locating the parking near the bus stop in exchange for the City’s conveyance to Dillon of the 12,391 square foot parcel along the west side of the Kmart store as described on the exhibit to Exhibit “A”, attached hereto and incorporated herein by this reference (the “Property”); and WHEREAS, the proposed conveyance is beneficial to both the City and Dillon in pursuing their respective use of the Property as a retail store and as a bus stop; and WHEREAS, the City Council has determined that the conveyance of the Property to Dillon is in the best interests of the City and that the Mayor is authorized to execute a deed making such conveyance. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that the Mayor is hereby authorized to execute a deed conveying the Property to the Dillon Companies, Inc., using a deed in substantially the form of the Deed of Conveyance attached hereto as Exhibit “A” and incorporated herein by this reference. - 2 - Introduced, considered favorably on first reading, and ordered published this 15th day of April, A.D. 2014, and to be presented for final passage on the 6th day of May, A.D. 2014. __________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on this 6th day of May, A.D. 2014. __________________________________ Mayor ATTEST: _____________________________ City Clerk EXHIBIT A