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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 11/20/2012 - SECOND READING OF ORDINANCE NO. 127, 2012, AUTHORIDATE: November 20, 2012 STAFF: Mark Sears Tawyna Ernst AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 15 SUBJECT Second Reading of Ordinance No. 127, 2012, Authorizing the Conveyance of City-owned Property Known as the Vangbo Property Subject to a Conservation Easement. EXECUTIVE SUMMARY The Vangbo Property was purchased by the Natural Areas Department (NAD) in 2005 with the intent to place a conservation easement on the property to conserve the open space and scenic values along the I-25 corridor and then sell it as an agricultural property with limited development options. The land is currently leased to Alison Person, a neighboring landowner, for grazing. This Ordinance, unanimously adopted on First Reading on November 6, 2012, authorizes the conveyance of the 105-acre Vangbo property and associated ditch and water rights with a reserved conservation easement to Alison Person for $300,000. The conservation easement does not allow any future development, but does give the landowner the option to request the purchase of one building envelope on the property from a future City Council. The undeveloped portion would remain in agricultural use. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. Copy of First Reading Agenda Item Summary - November 6, 2012 (w/o attachments) COPY COPY COPY COPY ATTACHMENT 1 DATE: November 6, 2012 STAFF: Mark Sears Tawnya Ernst AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 22 SUBJECT First Reading of Ordinance No. 127, 2012, Authorizing the Conveyance of City-owned Property Known as the Vangbo Property Subject to a Conservation Easement. EXECUTIVE SUMMARY The Vangbo Property was purchased by the Natural Areas Department (NAD) in 2005 with the intent to place a conservation easement on the property to conserve the open space and scenic values along the I-25 corridor and then sell it as an agricultural property with limited development options. These purposes are supported by the Natural Areas Land Conservation and Stewardship Plan, the Council-adopted master plan for the Department. The land is currently leased to Alison Person, a neighboring landowner, for grazing. Staff recommends selling the 105-acre Vangbo property and associated ditch and water rights with a reserved conservation easement to Alison Person for $300,000. The conservation easement does not allow any future development, but does give the landowner the option to request the purchase of one building envelope on the property from a future City Council. The undeveloped portion would remain in agricultural use. BACKGROUND / DISCUSSION The 105-acre Vangbo Property, located on the east side of I-25 near Prospect Road, was purchased in 2005. At the time, the property was identified as part of the Timnath Community Separator and was also selected for conservation to protect the view from I-25. The seller resided out of state and had no interest in selling the City a conservation easement, so Natural Areas purchased the property with the intent to resell the property with a conservation easement placed on it to limit commercial and residential development on the site. The property has been historically used for irrigated agriculture and is currently a smooth brome grass pasture/hay field with a few scattered cottonwood trees and a large wet meadow. Irrigation infrastructure exists to irrigate the property via the Sand Dike Lateral. The property has one irrigation well and four shares of Sand Dike Ditch Rights. The City intends to include a 1/2 share of Lake Canal Reservoir water rights in the sale to enable Ms. Person to rent more water which will help sustain the vegetation on the site. These water and ditch rights are of nominal financial value but are beneficial for maintaining the agricultural uses on the property. This property was being leased by Ms. Person as a pasture and hay field to help support her commercial horse stable prior to NAD's purchase of the property. NAD has continued leasing the property to Ms. Person since 2005. Also in 2005, NAD acquired a conservation easement from Ms. Person on her 35-acre horse stable property. FINANCIAL / ECONOMIC IMPACTS The sale of this property will generate $300,000 in revenue which will be used to conserve additional land and water. The sale price is the approximate fair market sale price of this agricultural land and its minor improvements with a conservation easement that precludes all development. The value is based upon recent land appraisals of similar properties and discussions with an appraiser who recently appraised a similar conservation easement for NAD. This land was purchased in 2005 for $1,417,500; the cost to conserve this 105 acres by removing the potential residential and commercial development rights from this I-25 frontage road property is $1,117,500. The economic health of Fort Collins and northern Larimer County will be positively influenced by this sale. The Vangbo property will continue to be an integral part of the successful operation of the Mountain View Stables, a popular local horse boarding stable owned by Ms. Person. COPY COPY COPY COPY November 6, 2012 -2- ITEM 22 ENVIRONMENTAL IMPACTS The conservation easement will conserve the agricultural and scenic values along I-25. The property will continue to be irrigated, hayed and grazed using a managed rotational system that will allow periods of rest from grazing to promote the regrowth of vegetation and to protect the wet meadow. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BOARD / COMMISSION RECOMMENDATION At its September 12, 2012 meeting, the Land Conservation and Stewardship Board voted unanimously to recommend approval of the sale of the Vangbo Property and associated ditch/water rights to Ms. Person. ATTACHMENTS 1. Location map 2. Land Conservation and Stewardship Board minutes, September 12, 2012 ORDINANCE NO. 127, 2012 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE CONVEYANCE OF CITY-OWNED PROPERTY KNOWN AS THE VANGBO PROPERTY SUBJECT TO A CONSERVATION EASEMENT WHEREAS, the City is the owner of certain real property known as the Vangbo Property, located in Larimer County, Colorado, as more particularly described in Exhibit “A”, attached and incorporated herein by this reference (the “Property”); and WHEREAS, the Property, which is approximately 105 acres in size, was purchased in 2005 by the City’s Natural Areas Department as part of the Timnath Community Separator and to protect the view from I-25, with the intent of eventually selling the Property subject to a conservation easement that would maintain the agricultural value of the Property; and WHEREAS, Natural Areas staff is proposing to sell the Property and related water rights, including the McLaughlin Well, four shares of Sand Dike Ditch rights, and a one-half share of Lake Canal Reservoir rights, for $300,000, subject to a reserved conservation easement that would limit future commercial and residential development on the Property; and WHEREAS, City staff is in the process of negotiating with the proposed buyer of the Property conservation easement terms and conditions subject to which the Property would be conveyed; and WHEREAS, a copy of the proposed conservation easement, dated October 26, 2012, is on file in the Office of the City Clerk and available for public inspection (the “Conservation Easement”); 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 City Council hereby finds that the conveyance of the Vangbo Property subject to the Conservation Easement as provided herein is in the best interests of the City. Section 2. That the Mayor is hereby authorized to execute such documents as are necessary to convey the Property on terms and conditions consistent with this Ordinance and subject to the Conservation Easement in substantially the form for the same dated October 26, 2012, and 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 are necessary or appropriate to protect the interests of the City or effectuate the purposes of this Ordinance, including, but not limited to, any necessary corrections 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 conveyed. Introduced, considered favorably on first reading, and ordered published this 6th day of November, A.D. 2012, and to be presented for final passage on the 20th day of November, A.D. 2012. _________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on the 20th day of November, A.D. 2012. _________________________________ Mayor ATTEST: _____________________________ City Clerk RET Form Version 3/16/07 - 13 - Vangbo Property Legal Description