HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/01/2011 - RESOLUTION 2011-099 AUTHORIZING AN AGRICULTURAL LEDATE: November 1, 2011
STAFF: Daylan Figgs
Justin Scharton
AGENDA ITEM SUMMARY
FORT COLLINS CITY COUNCIL 23
SUBJECT
Resolution 2011-099 Authorizing an Agricultural Lease on Prairie Ridge Natural Area to Harry Sauer.
EXECUTIVE SUMMARY
The Natural Areas Program partnered with the City of Loveland (as a minority owner) to purchase the 785 acre Prairie
Ridge Natural Area in 2000 from Harry Sauer. The City entered into an IGA with the City of Loveland, who manages
the property. Loveland leased the property back to Mr. Sauer for farming and the property has been in dryland wheat
production since the time of purchase. The renewal of the existing agricultural lease on the property for one additional
growing season will allow time for the City of Fort Collins, the City of Loveland and Larimer County to pursue a
collective competitive Request For Proposal process to select a farming tenant for an agriculture lease on this property
and two other contiguous properties located in the Fort Collins/Loveland community separator.
BACKGROUND / DISCUSSION
Loveland and Fort Collins purchased 785 acres from Harry Sauer in 2000 and have been leasing the property back
to Mr. Sauer for wheat farming. Loveland is the managing entity on the Prairie Ridge Natural Area property per the
terms of an IGA, administrates the lease and receive all rental income from the property. The lease expired on July
31, 2011, at the traditional end of the harvest for winter wheat production.
Mr. Sauer also leases a portion of Coyote Ridge Natural Area and Long View Farm Open Space for wheat farming;
both properties are located in the separator between Loveland and Fort Collins. Coyote Ridge is owned and managed
by the City of Fort Collins and Long View is owned in partnership between the County, Loveland and the City and is
managed per an IGA with Larimer County.
Loveland, Larimer County, and the City have agreed to collaborate on a collective competitive Request for Proposal
process to select a farming tenant for agriculture leases on all three contiguous dryland wheat properties. All three
agencies have notified Mr. Sauer that a formal Request for Proposal (RFP) for farming services on these properties
will be sent out in the fall of 2011. Mr. Sauer has also been notified that the City’s current lease for Coyote Ridge and
the County’s lease for Long View Farm will be terminated on July 31, 2012.
Loveland and Fort Collins are recommending a one year, short term lease for Prairie Ridge with the same terms and
conditions as the previous lease for the property that will expire July 31, 2012. This one year extension of the lease
will allow time for the RFP process to take place. The lease rate for the one year extension is ten dollars ($10) per
acre for the approximately 250 (+/-) acres planted into dryland wheat on an annual basis. Mr. Sauer will receive 100%
of the Crop Flexibility payments from the Farm Service Agency, and will be responsible for any and all costs associated
with crop production, insect control and noxious weed control. The lease generates approximately $2,500 per year
for the City of Loveland. The future tenant will be selected through the RFP process and the three individual property
leases will be approved by the appropriate agencies prior to the one year lease expiration.
FINANCIAL / ECONOMIC IMPACTS
There are no financial impacts to the City of Fort Collins with this Resolution.
ENVIRONMENTAL IMPACTS
There are no significant environmental impacts to the City of Fort Collins with this Resolution. The property’s land use
will not change and existing farming practices will continue unchanged.
November 1, 2011 -2- ITEM 23
STAFF RECOMMENDATION
Staff recommends adoption of the Resolution.
BOARD / COMMISSION RECOMMENDATION
At its October 12, 2011 meeting, the Land Conservation and Stewardship Board voted unanimously to recommend
approval of the lease extension.
ATTACHMENTS
1. Location Map
2. Land Conservation and Stewardship Board Meeting Minutes, October 12, 2011
57TH
SHIELDS
TAFT HILL
GARFIELD
COLLEGE
64TH
65TH
71ST
SPRING GLADE
HIGHWAY 287
66TH
AVONDALE
SPRING MESA
67TH
69TH
RANGER
KIM
RAINSHADOW
COUNTY ROAD 17
COUNTY ROAD 19
TRIANGLE
TAFT
REEVES
VONA
HARRISON
FRANKLIN
NIMITZ
TRUXTUN
IDALIA
CHESTNUT
FORRESTAL
WILSON
SEDGWICK
TAHOE
MATHESON
MIDLAND
DEBRA
BERRY
APPLE
VINSON
OLATHE
TONGASS
LYFKA
GUFFEY
¹
Prairie Ridge Natural Area Location and Other Conserved Properties in Vicinity
Created by City of Fort Collins Natural Areas - 2011
Project Area
Larimer County
City of Fort Collins Natural Areas
City of Loveland Open Space (Prop. to be Leased)
Larimer County Dept. of Natural Resources
0 0.125 0.25 0.5
Miles
Property to be Leased
(CITY PRAIRIE OF LOVELAND RIDGE NATURAL 75% OWNERSHIP AREA
CITY OF FORT COLLINS 25% OWNERSHIP)
OPEN RIMROCK SPACE
(LARIMER COUNTY)
COYOTE RIDGE NATURAL AREA
Land Conservation and Stewardship Board
Wednesday, October 12, 2011
Sauer Agriculture Lease - Excerpt
Figgs: The Natural Areas Program partnered on the purchase of the 785
acre Prairie Ridge Natural Area as a minority owner with the City of
Loveland in 2000 from Harry Sauer. The City entered into an IGA with
the City of Loveland who manages the property. Loveland leased the
property back to Mr. Sauer for farming and the property has been in
dryland wheat production since the time of purchase. The renewal of the
existing agricultural lease on the property for one additional growing
season will allow time for the City of Fort Collins, the City of Loveland
and Larimer County to pursue a collective competitive Request for
Proposal process to select a farming tenant for an agriculture lease on this
property and two other contiguous properties located in the Fort
Collins/Loveland community separator.
Stanley: Will Natural Areas staff restore any parts of this land?
Figgs: We are actively restoring Coyote Ridge Natural Area. The portion
of the farm, that we own, has been restored and we will continue to restore
the area as we have time and available staff. Loveland currently has not
showed interest in restoration.
Knowlton: Is there a chance that anyone other than Mr. Sauer would be
interested in this area?
Figgs: I think the chances are slim, however all three agencies have
notified Mr. Sauer that a formal Request for Proposal (RFP) for farming
services on these properties will be sent out in the fall of 2011.
Cameron: It makes sense to consolidate, and have all the leases on the
same time frame. Would all three agencies put the property out for bid?
Figgs: Yes, the one year extension of the lease will allow time for the
RFP process to take place. Our intent is that it will all go out to bid.
Stanley moved that the Land Conservation and Stewardship Board recommend
that City Council approve a Resolution authorizing the one year extension of the
existing agriculture lease on the 785 acre Prairie Ridge Natural Area property with
the current tenant, Harry Sauer.
RESOLUTION 2011-099
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING AN AGRICULTURAL LEASE ON PRAIRIE RIDGE NATURAL AREA
TO HARRY SAUER
WHEREAS, the City of Loveland and the City of Fort Collins are joint owners of the
property known as Prairie Ridge Natural Area, which is described on Exhibit “A”, attached and
incorporated herein by reference (the “Property”); and
WHEREAS, Loveland and Fort Collins purchased the Property from Harry Sauer in 2000,
and since that time have been leasing the Property back to Mr. Sauer for wheat farming; and
WHEREAS, Mr. Sauer’s most recent lease for the Property expired on July 31, 2011; and
WHEREAS, City staff is recommending that Mr. Sauer be granted an additional one-year
lease for the Property, to expire on July 31, 2012, to allow time for completion of a formal Request
for Proposals for farming services on several properties; and
WHEREAS, the new lease would be on the same terms and conditions as the previous lease
for the Property; and
WHEREAS, the proposed lease agreement is attached hereto as Exhibit “B”; and
WHEREAS, the new lease would generate approximately $2,500 in rent, which would go
to the City of Loveland in exchange for Loveland’s work managing the Property; and
WHEREAS, the Loveland City Council approved the proposed lease at its regular meeting
on October 4, 2011; and
WHEREAS, the Land Conservation and Stewardship Board voted unanimously to
recommend approval of the proposed lease at its regular meeting on October 12, 2011; and
WHEREAS, Section 23-114(a) of the City Code authorizes the City Council to lease, for a
definite term of two years or less, any and all interest in real property owned in the name of the City,
provided that the City Council first finds, by resolution, that the lease is in the best interests of the
City.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1. That the lease of the Property pursuant to the terms of this Resolution is in
the best interests of the City.
Section 2. That the Mayor is hereby authorized to execute a joint lease agreement for
the Property in substantially the form as is attached hereto as Exhibit B, together with such
additional terms and conditions or subsequent amendments or corrections as the City Manager, in
consultation with the City Attorney, determines are necessary or appropriate to protect the interests
of the City, including, but not limited to, any necessary changes to the legal description of the leased
area, as long as such changes do not materially increase the size or change the character of the leased
area.
Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 1st
day of November A.D. 2011.
Mayor
ATTEST:
City Clerk
LONG (LARIMER VIEW COUNTY OPEN SPACE OS)
MARIPOSA COLINA
NATURAL AREA