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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 06/18/2013 - SECOND READING OF ORDINANCE NO. 081, 2013 AUTHORIZDATE: June 18, 2013 STAFF: Tawyna Ernst AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 11 SUBJECT Second Reading of Ordinance No. 081, 2013 Authorizing Dryland Farm Leases to Harry Sauer on Long View Farm Open Space, Prairie Ridge Natural Area, and Coyote Ridge Natural Area. EXECUTIVE SUMMARY The City of Fort Collins Natural Areas Department is a minority owner in Long View Farm Open Space and Prairie Ridge Natural Area, and is the sole owner of the McKee parcel within Coyote Ridge Natural Area. The majority owners of Long View and Prairie Ridge are Larimer County and the City of Loveland respectively. All three properties are leased by Harry Sauer for dryland wheat production and have been since the time of purchase of the properties by the Cities and County. Intergovernmental Agreements state which agency has management authority and receives the lease revenues for each property. As current leases expire on the properties, all three entities have worked collaboratively to create leases with similar terms and have advertised the properties for lease via one Request for Proposals process. This Ordinance, unanimously adopted on First Reading on June 4, 2013, authorizes dryland farm leases to Harry Sauer on these areas. The new leases have a higher lease rate and more contemporary language. Restoration of the dryland wheat to native grasses on the McKee parcel will continue at the same pace as in the past and it will nearly be completely restored to native grasslands by the end of the lease term of five years. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. Copy of First Reading Agenda Item Summary - June 4, 2013 (w/o attachments) COPY COPY COPY ATTACHMENT 1 DATE: June 4, 2013 STAFF: Tawyna Ernst AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 18 SUBJECT First Reading of Ordinance No. 081, 2013 Authorizing Dryland Farm Leases to Harry Sauer on Long View Farm Open Space, Prairie Ridge Natural Area, and Coyote Ridge Natural Area. EXECUTIVE SUMMARY The City of Fort Collins Natural Areas Department is a minority owner in Long View Farm Open Space and Prairie Ridge Natural Area, and is the sole owner of the McKee parcel within Coyote Ridge Natural Area. The majority owners of Long View and Prairie Ridge are Larimer County and the City of Loveland respectively. All three properties are leased by Harry Sauer for dryland wheat production and have been since the time of purchase of the properties by the Cities and County. Intergovernmental Agreements state which agency has management authority and receives the lease revenues for each property. As current leases expire on the properties, all three entities have worked collaboratively to create leases with similar terms and have advertised the properties for lease via one Request for Proposals process. The new leases have a higher lease rate and more contemporary language. Restoration of the dryland wheat to native grasses on the McKee parcel will continue at the same pace as in the past and it will nearly be completely restored to native grasslands by the end of the lease term of five years. BACKGROUND / DISCUSSION In 1997, the 479-acre Long View Farm Open Space was purchased by Larimer County, the City of Fort Collins and the City of Loveland, with an ownership split of 50%, 33%, and 17%, respectively. At the time of acquisition, an Intergovernmental Agreement (IGA) was also drafted. Per the terms of the IGA, the County manages the property and administers the agricultural lease, and receives all rental income from the property. In 2000, the 785-acre Prairie Ridge Natural Area was acquired from Harry Sauer by Loveland (75% ownership) and Fort Collins (25% ownership). Per the terms of the IGA, Loveland manages the property and the agricultural lease, and receives all rental income from the property. In 1997, Fort Collins acquired the 973-acre McKee Farm parcel of Coyote Ridge Natural Area. Fort Collins owns and manages the property entirely with no shared ownership or management with other entities. Mr. Sauer farmed all three properties prior to City and County ownership, and has continued farming under the existing leases that are set to expire in 2013. RFP Process In the fall of 2011, a Request for Proposal (RFP) was conducted by Fort Collins for dryland farming leases on all three properties. Mr. Sauer’s proposal was selected. The new agricultural lease reflects the terms and conditions outlined in the proposal. Fort Collins, Loveland, and Larimer County worked together to draft leases for each Property that are nearly identical in terms with several minor exceptions. The lease rate and the large majority of terms for all three leases are the same. These consistent lease terms will allow consistency and ease of management across the three adjacent properties and provide Mr. Sauer with essentially one set of lease terms to adhere to. Lease Terms Mr. Sauer will lease Long View, Prairie Ridge, and McKee for a period of five (5) years beginning August 1, 2013 and expiring no later than July 31, 2018. The lease rate will be $20/acre of farmed land annually for each property. Mr. Sauer will receive 100% of the Crop Flexibility payments from the Farm Service Agency, and is responsible for any and all costs associated with crop production, insect control and noxious weed control. In addition, the lease terms have been updated to a more contemporary format with more preferable terms. COPY COPY COPY June 4, 2013 -2- ITEM 18 Restoration Over the past five years, Fort Collins has restored approximately 50 acres of farmland annually to native grasslands on McKee. Currently, Fort Collins plans to continue restoration efforts on McKee at the same pace; approximately 50 acres of farmable acreage will remain on the property by the end of this lease term, which will be restored the following year. The McKee lease details this restoration and Mr. Sauer will work cooperatively with Fort Collins to farm the remaining portion of the property. FINANCIAL / ECONOMIC IMPACTS The rent payments from Long View and Prairie Ridge will be retained by Larimer County and Loveland, respectively, per the respective IGAs. The McKee lease rate is roughly double the previous rate, and Mr. Sauer will be responsible for all management on the lease area of the property. The City will receive all rental income from the McKee property. ENVIRONMENTAL IMPACTS There are no significant environmental impacts to Fort Collins. The properties’ land use will not change and existing farming practices and restoration efforts will continue unchanged. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BOARD / COMMISSION RECOMMENDATION At its May 8, 2013 meeting, the Land Conservation and Stewardship Board voted unanimously to recommend that City Council approve three leases with Harry Sauer to farm dryland winter wheat on portions of Long View Farm Open Space, Prairie Ridge Natural Area and Coyote Ridge Natural Area. ATTACHMENTS 1. Location Map 2. Farmable Acreage Map 3. Land Conservation and Stewardship Board minutes, May 8, 2013 ORDINANCE NO. 081, 2013 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING DRYLAND FARM LEASES TO HARRY SAUER ON LONG VIEW FARM OPEN SPACE, PRAIRIE RIDGE NATURAL AREA, AND COYOTE RIDGE NATURAL AREA WHEREAS, in 1997 the City, Larimer County (“County”) and the City of Loveland (“Loveland”) purchased a parcel of land located in Larimer County, Colorado known as Long View Farm Open Space, as described on Exhibit “A” attached and incorporated herein by reference (“Longview Farm”), with the City owning a 33% interest, the County 50%, and Loveland 17%; and WHEREAS, the City, County and Loveland purchased Longview Farm in accordance with an intergovernmental agreement dated April 14, 1997; and WHEREAS, in 2000, the City and Loveland purchased a parcel of land located in Larimer County, Colorado, known as Prairie Ridge Natural Area, as described on Exhibit “B” attached and incorporated herein by reference (“Prairie Ridge”), with the City owning a 25% interest and Loveland owning 75%; and WHEREAS, the City and Loveland purchased Prairie Ridge in accordance with an intergovernmental agreement dated March 22, 2000; and WHEREAS, the City is the owner of a parcel of land located in Larimer County, Colorado known as McKee Farm, which is part of Coyote Ridge Natural Area, as described on Exhibit “C” attached and incorporated herein by reference (“McKee Farm”); and WHEREAS, Longview Farm, Prairie Ridge and McKee Farm (collectively, the “Properties”) were all farmed by Harry Sauer prior to their acquisition by the City, County and Loveland, and Mr. Sauer has continued farming the Properties under various leases and lease extensions previously approved by the City Council; and WHEREAS, the Properties were purchased for open space and general natural areas purposes, which would be advanced by the continuation of dryland farming; and WHEREAS, in 2011 the City conducted a Request for Proposal process for new dryland farming leases on the Properties, and Mr. Sauer’s proposal was selected; and WHEREAS the City, County and Loveland have worked together to draft new leases for each of the Properties that are nearly identical in terms and conditions in order to allow consistency in management across the three Properties; and WHEREAS, the lease rate for each lease would be $20 per acre annually for a lease term of five years; and WHEREAS, the lease payments for Longview would be retained by the County, the lease payments for Prairie Ridge would be retained by Loveland, and the City would receive the lease payments for McKee Farm; and WHEREAS, copies of the proposed lease agreements are on file in the office of the City Clerk and are available for inspection; and WHEREAS, under Section 23-111(a) of the City Code, 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 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 leasing Longview Farm, Prairie Ridge, and the McKee Farm portion of Coyote Ridge Natural Area to Harry Sauer for dryland farming under the terms listed above is in the best interests of the City. Section 2. That the City Manager is hereby authorized to execute lease agreements for the Properties 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 to be necessary or appropriate to protect the interests of the City, including, but not limited to, any necessary changes to the legal descriptions of the Properties, as long as such changes do not materially increase the size or change the character of the property to be leased. Introduced, considered favorably on first reading, and ordered published this 4th day of June, A.D. 2013, and to be presented for final passage on the 18th day of June, A.D. 2013. _________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on the 18th day of June, A.D. 2013. _________________________________ Mayor ATTEST: _____________________________ City Clerk Exhibit A EXHIBIT B Legal Description of Prairie Ridge EXHIBIT C