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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 05/15/2001 - SECOND READING OF ORDINANCE NO. 85, 2001, AUTHORIZ AGENDA ITEM SUMMARY ITEM NUMBER: 1 t DATE: May 15, 2001 FORT COLLINS CITY COUNCIL FROM: Tom Shoemaker SUBJECT: Second Reading of Ordinance No. 85, 2001, Authorizing the Lease of a Portion of Running Deer Natural Area to Hageman Earth Cycle, Inc. RECOMMENDATION: Staff and the Natural Resources Advisory Board recommend adoption of the Ordinance on Second Reading. EXECUTIVE SUMMARY: This Ordinance, which was unanimously adopted on First Reading on May 1, 2001, authorizes the City Manager to enter into a lease agreement with Hageman Earth Cycle, Inc. for up to 5 years on approximately 16-acres of land owned by the City. The lease agreement allows Hageman to continue operations of the landscape materials and composting business that has 10 been in operation on the site for approximately 10 years. AGENDA ITEM SUMMARY ITEM NUMBER: 19 DATE: FORT COLLINS CITY COUNCIL May 1, 2001 STAFF: Tom Shoemaker SUBJECT: First Reading of Ordinance No. 85, 2001, Authorizing the Lease of a Portion of Running Deer Natural Area to Hageman Earth Cycle. Inc. RECOMMENDATION: k� Staff and the Natural Resources Advisory Board recommend a Qthe Ord ce on First Reading. FINANCIAL IMPACT: ry. The leaseagreement would generate $1,20 h of reve in its initial term. If the lease is extended beyond the initial term of one year, e parent would be adjusted based on the fair market rental value of the property. ; �6 a � EXECUTIVE SUMMA This O ance authorizes the er to into a lease agreement with Hageman Earth Cycl ' nc. for up to 5 years on 6-acres of land owned by the City. The lease agre ent allows Hageman to continue operations of the landscape materials and composting bus' s that has been in operat n on the site for approximately 10 years. This arrangement is con t with established pract a in the Natural Areas Program to work with existing tenants on 1 chased by the City t acilitate a smooth transition to another location. BACKGROU The City's goa s s Natural Areas and Open Lands Program place a high priority on the conservation of lands in the Poudre River Corridor. One of the key areas of conservation focus has been in the corridor in the vicinity of East Prospect Street, near the Colorado State University Environmental Learning Center. Over the past several years, the City has completed several land purchases to amass a contiguous area of protected lands totalling nearly 2,000 acres in this vicinity. In 1998, the City completed the acquisition of a 95-acre parcel of land adjacent to the Environmental Learning Center, and contiguous to other City-owned natural areas. The property DATE: May 1, 2001 1 2 ITEM NUMBER: lq is now known as Running Deer Natural Area. At the time of the City's purchase. Hageman Earth Cycle. Inc. had a preexisting lease on approximately 16 acres of the property, which it used for part of its landscape materials and composting business operations. At the time of the City's acquisition, Hageman was interested in acquiring the property, however, the owner preferred to sell the entire property to the City. Staff discussed the options and agreed that it was best for the City to acquire the entire property so that the City could maintain control of future options. At the time of the City's purchase, staff informed Mr. Hageman that the CitAfould work with him to minimize the impact on his business and would consider future sale se of a portion of the property. Staff met with Mr. Hageman during this period and told him th the City would buy the entire property, that the City was supportive of his composting and Ian cape materials business, and that staff would work with him to allow his continu use of the # perty for that purpose. He expressed his strong desire to purchase the pro pe a also expre d interest in the Resource Recovery Farm or other City properties. Sta a sale of a portion of the City property was a possibility, but that the City wou look at a long-term lease or other options (such as sale with a conservation easement in pla would protect the City's long-term interest in the open char roperty. Staff also agreed to explore other options. D ' the intery "°" time, staff has explored with Mr. Hageman several options, including us , City pro in the vicinity (the Resource Recovery Farm), co-location of the compost[ F rations 4ith the ELC, identification of alternative sites for his operation, co-location at th nd lease or sale of a portion of the property for his continued use. None he altemativ roved feasible or acceptable to Mr. Hageman and he has continue ng desir chase the property. In recent months, staff ha`�"worked with an to a 4r a final resolution. Staff worked to define boundarlW, . financial value, an ntial cont et restrictions in the interest of a. either selling some pro pest to Mr. Hageman o erecting a long term lease. In reviewing floodplain mapping for t ea, it became appazentt portions of the City property on which Hageman opera are wi{ e 100-year floodplai f the Poudre River and that another area (includin . , wne eman) is in a od hazard area from the Cooper Slough draina is area is not in floodpl ' ut only because the detailed study has not been e. Existing data clear ea is subject to shallow flooding from water that uld overtop Prospect Street in a 00-year event and is therefore subject to the City's flo ain regulations. The ings raised several co ems. First, portions of the City property on which Hageman opera be needed in the Pure as part of a solution to flooding issues for Boxelder Creek and Co ugh. This wi of be known for certain until the Master Plan for these drainages is comple` ppears that there is a good possibility that some structural measures may be neede oute flood flows to the Poudre River. Second. new regulations adopted by the State of Colorado do not allow composting facilities in floodplains. It appears that there may be some significant regulatory issues to be resolved regarding his use of the site for composting, or engineering work needed to take the property out of the floodplain. Third. the floodplain regulations for the Poudre River prohibit the placement of -floatable" materials in the floodplain: which may pose a regulatory concern for future operations. Finally, the City's adopted policies direct us to protect land in floodplains or land shown on the Structure Plan as rural/open lands in a largely undeveloped state. DATE: May 1, 2001 -1 ITEM NUMBER: 19 After reviewing all of the latest information, staff reached the conclusion that it is in the Citv's best interest to retain ownership of the property. Staff met with Mr. Hageman to discuss its findings and to define a reasonable time frame during which he could transfer his operations on City property to an alternative location. Although Mr. Hageman still desires to purchase the property, he has indicated that leasing the property would offer a period of time for adjustment of his business operations. Staff and Mr. Hageman agreed to negotiate the terms of a short-term lease (up to 5 years) for Council consideration. The Natural Resources Advisory Board reviewed the proposed lease arrangement with Hageman Earth Cycle at its mg4ng of April 18. 2001. By acclamation, the Board recommended Council approval agreement as recommended by staff. Y<. = , + a : yr