Loading...
HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 02/09/2016 - ITEMS RELATING TO CITY PROPERTY AT THE COLLEGE AVEAgenda Item 3 Item # 3 Page 1 AGENDA ITEM SUMMARY February 2, 2016 February 9, 2016 City Council STAFF Lindsay Kuntz, Real Estate Specialist Rick Richter, Director of Infrastructure Services SUBJECT Items Relating to City Property at the College Avenue and Prospect Road Intersection. EXECUTIVE SUMMARY A. Second Reading of Ordinance No. 013, 2016, Authorizing the Conveyance of City Property at College Avenue and Prospect Road to Colorado State University. B. Second Reading of Ordinance No. 014, 2016, Declaring Certain City-Owned Property at College Avenue and Prospect Road as Road Right-of-Way. These Ordinances, unanimously adopted on First Reading on January 19, 2016, authorize the conveyance of a portion of City property located at the northwest corner of College Avenue and Prospect Road to Colorado State University and declare the remaining City property as road right-of-way. Colorado State University (CSU) is developing a medical center on property it owns at the northwest corner of the College Avenue and Prospect Road intersection. This development will require the construction of ultimate road improvements adjacent to its development. The City owns a small parcel of land located at the northwest corner of College Avenue and Prospect Road. The property was purchased in 1995 as part of the College Avenue/Prospect Road Choices 95 Project. A portion of the City property will be needed for right-of-way purposes as part of the ultimate road improvements. The remaining portion of the City property is not needed for current or future right-of-way needs. City staff desires to release the City’s obligations related to the fee simple ownership of the remnant parcel and proposes conveying the remnant portion of the property to the surrounding property owner, CSU, while retaining a utility easement over the remnant parcel. Staff proposes conveying the remnant portion at a minimal cost due to the overall benefits to the public and supporting the City’s goals and projects in the area. As part of the medical center project CSU will dedicate the ultimate right-of-way along Prospect Road adjacent to the development. Ordinance No. 013, 2016 authorizes the conveyance of the remnant portion of the City property to Colorado State University. Ordinance No. 014, 2016 officially establishes the remaining portion of the City property as public road right-of-way. STAFF RECOMMENDATION Staff recommends adoption of the Ordinances on Second Reading. ATTACHMENTS 1. First Reading Agenda Item Summary, January 19, 2016 (w/o attachments) (PDF) 2. Ordinance No. 013, 2016 (PDF) 3. Ordinance No. 014, 2016 (PDF) Agenda Item 9 Item # 9 Page 1 AGENDA ITEM SUMMARY January 19, 2016 City Council STAFF Lindsay Kuntz, Real Estate Specialist Rick Richter, Director of Infrastructure Services SUBJECT Items Relating to City Property at the College Avenue and Prospect Road Intersection. EXECUTIVE SUMMARY A. First Reading of Ordinance No. 013, 2016, Authorizing the Conveyance of City Property at College Avenue and Prospect Road to Colorado State University. B. First Reading of Ordinance No. 014, 2016, Declaring Certain City-Owned Property at College Avenue and Prospect Road as Road Right-of-Way. The purpose of this item is to authorize the conveyance of a portion of City property located at the northwest corner of College Avenue and Prospect Road to Colorado State University and declare the remaining City property as road right-of-way. Colorado State University (CSU) is developing a medical center on property it owns at the northwest corner of the College Avenue and Prospect Road intersection. This development will require the construction of ultimate road improvements adjacent to its development. The City owns a small parcel of land located at the northwest corner of College Avenue and Prospect Road. The property was purchased in 1995 as part of the College Avenue/Prospect Road Choices 95 Project. A portion of the City property will be needed for right-of-way purposes as part of the ultimate road improvements. The remaining portion of the City property is not needed for current or future right-of-way needs. City staff desires to release the City’s obligations related to the fee simple ownership of the remnant parcel and proposes conveying the remnant portion of the property to the surrounding property owner, CSU, while retaining a utility easement over the remnant parcel. Staff proposes conveying the remnant portion at a minimal cost due to the overall benefits to the public and supporting the City’s goals and projects in the area. As part of the medical center project CSU will dedicate the ultimate right-of-way along Prospect Road adjacent to the development. Ordinance No. 013, 2016 will authorize the conveyance of the remnant portion of the City property to Colorado State University. Ordinance No. 014, 2016 will officially establish the remaining portion of the City property as public road right-of-way. STAFF RECOMMENDATION Staff recommends adoption of the Ordinances on First Reading. BACKGROUND / DISCUSSION Colorado State University’s (CSU) medical center project is currently in the planning stages. As part of its development design, CSU has partnered with the City to design necessary improvements to the Prospect and College intersection, including road, bicycle, and pedestrian improvements. The improvements to be made at the northwest corner have presented an opportunity for the City to construct other needed multimodal improvements at the intersection. The City Engineering Department is currently working on the design of these additional improvements. ATTACHMENT 1 Agenda Item 9 Item # 9 Page 2 In 1995, the City needed to acquire right-of-way and a utility easement from the property at the northwest corner of the intersection. The property at that time included a small residential house. Considering the impact of the needed right-of-way and easement acquisition on the overall property, the City agreed to purchase the entire parcel from the owner. The house was then removed and the road improvements were constructed, leaving a small remnant of vacant land. The City will reserve a utility easement across the remnant parcel that is proposed to be conveyed to CSU. This utility easement will align with the adjoining utility easements along Prospect Road to be dedicated as part of CSU’s project. Declaring City-owned property to be right-of-way creates certain rights in the public and in non-City utility providers that would not necessarily exist on other City property. Such a declaration is therefore treated as a conveyance of an interest in real property requiring City Council authorization under Section 23-111 of the City Code. CITY FINANCIAL IMPACTS City staff proposes conveying the City property to CSU at a minimal cost of $10. Staff is supportive of a below- market conveyance due to:  The benefits to the public;  This conveyance will create a consistent right-of-way and easement along Prospect in line with the additional right-of-way and easement being dedicated as part of the medical center project.  The conveyance supports multiple City goals and projects;  The City will be released of its obligations related to the fee simple ownership of the property that is not expected to be necessary for any current or future City needs;  The CSU project will construct a number of public improvements including raised median, new curb, gutter and detached sidewalk along the Prospect Road frontage of the property.  The property to be conveyed will become encumbered by becoming a part of the 15-foot wide utility easement that will be dedicated along the north right-of-way line of Prospect Road. ATTACHMENTS 1. Location map (PDF) 2. City parcel detail (PDF) -1- ORDINANCE NO. 013, 2016 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE CONVEYANCE OF CITY PROPERTY AT COLLEGE AVENUE AND PROSPECT ROAD TO COLORADO STATE UNIVERSITY WHEREAS, the City is the owner of a parcel of real property located at the northwest corner of the intersection of College Avenue and Prospect Road in Fort Collins, and described in the records of the Larimer County Assessor as Parcel Number 97144-11-910 (the “City Property”); and WHEREAS, the City Property was purchased for right-of-way purposes in 1995 as part of the College Avenue/Prospect Road Choices 95 Project; and WHEREAS, City staff has determined that a portion of the City Property approximately 1685 square feet in size (the “Remnant Parcel”) is not needed for current or future right-of-way or other City purposes; and WHEREAS, the Remnant Parcel is more specifically described on Exhibit “A”, attached and incorporated herein by reference; and WHEREAS, Colorado State University (“CSU”) is developing a medical center on property that surrounds the City Property to the north and west; and WHEREAS, the City wishes to convey the Remnant Parcel to CSU so that the City will no longer have any obligations with respect to the Remnant Parcel; and WHEREAS, the City would reserve a utility easement across the Remnant Parcel at the time of conveyance; and WHEREAS, City staff is recommending that the Remnant Parcel be conveyed to CSU at a nominal cost of ten dollars; and WHEREAS, Section 23-111(a) of the City Code authorizes the City Council to sell, convey or otherwise dispose of real property owned by the City, provided that the City Council first finds, by ordinance, that such sale or disposition will be in the best interests of the City; and WHEREAS, Section 23-114 of the City Code provides that any sale, lease or other conveyance of property interests approved under Subsection 23-111(a) must be for an amount equal to or greater than the fair market value of such interest unless the City Council determines that such sale or lease serves a bona fide public purpose because: (1) The use to which the property will be put promotes health, safety or general welfare and benefits a significant segment of the citizens of Fort Collins; -2- (2) The use to which the property will be put supports one (1) or more of the City Council's goals, adopted policies, projects or plans; (3) The financial support provided by the City through the below-market disposition of the property will be leveraged with other funding or assistance; (4) The sale or lease will not result in any direct financial benefit to any private person or entity, except to the extent such benefit is only an incidental consequence and is not substantial relative to the public purpose being served; and (5) Selling or leasing the property for less than fair market rent will not interfere with current City projects or work programs, hinder workload schedules or divert resources needed for primary City functions or responsibilities; and WHEREAS, City staff believes a below market purchase price for the conveyance of the Remnant Parcel to CSU serves a bona fide public purpose because: (1) it will relieve the City of maintenance and other obligations for the property, and create consistent right-of-way and easement lines along Prospect Road; (2) as part of its development, CSU will be required to build on the Remnant Parcel public improvements that support the City’s planned College and Prospect Intersection Improvement Project; (3) CSU’s project will be supported mainly be other funding, and the value of the Remnant Parcel to CSU’s project is not significant; (4) the sale will not result in a direct financial benefit to any private person or entity except as an incidental consequence to the public purpose served; and (5) selling the property for less than fair market value will not interfere with current City projects or work programs, hinder workload schedules or divert resources needed for primary City functions or responsibilities. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. Section 2. That the City Council hereby finds that the conveyance of the Remnant Parcel to CSU as provided herein is in the best interests of the City and serves a bona fide public purpose. Section 3. That the Mayor is hereby authorized to execute such documents as are necessary to convey the Remnant Parcel to CSU 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 description of the Remnant Parcel, as long as such changes to not materially increase the size or change the character of the property interest to be conveyed. -3- Introduced, considered favorably on first reading, and ordered published this 19th day of January, A.D. 2016, and to be presented for final passage on the 2nd day of February, A.D. 2016. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 2nd day of February, A.D. 2016. __________________________________ Mayor ATTEST: _______________________________ City Clerk &YIJCJU" 1BHFPG EXHIBIT A " -1- ORDINANCE NO. 014, 2016 OF THE COUNCIL OF THE CITY OF FORT COLLINS DECLARING CERTAIN CITY-OWNED PROPERTY AT COLLEGE AVENUE AND PROSPECT ROAD AS ROAD RIGHT-OF-WAY WHEREAS, as part of the process of acquiring land for the College Avenue/Prospect Road Choices 95 Project, the City purchased the property located at the northwest corner of the intersection, more specifically described on Exhibit “A,” attached and incorporated herein by reference (the “City Property”), for right-of-way purposes; and WHEREAS, the City Property was purchased in fee simple and the public real property records regarding the City Property do not indicate that such property is for use by the City as right-of-way and related purposes; and WHEREAS, the lack of such information about the City Property in the public real property records could raise title insurance issues for adjacent property owners and utilities seeking to locate facilities within the right-of-way, because the areas located between the roadway and the property line are not clearly delineated as part of the public right-of-way; and WHEREAS, in order to establish a public record that the City Property is intended for use by the City as right-of-way for a public roadway and related improvements, including without limitation public utilities, pedestrian, transit and bicycle access and improvements, landscaping, and such other related purposes as may now or in the future be determined appropriate, staff recommends that the City Council declare the City Property to be right-of-way; and WHEREAS, converting a piece of property owned by the City in fee simple to right-of- way constitutes a conveyance of an interest in the property, as doing so creates certain public rights in the property that would not otherwise exist on City-owned property; and WHEREAS, Section 23-111(a) of the City Code authorizes the City Council to sell, convey or otherwise dispose of any interests in real property owned by the City, provided 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 makes and adopts the determinations and findings contained in the recitals set forth above. Section 2. That the City Council hereby declares that the real property described on Exhibit “A” shall constitute right-of-way for College Avenue and Prospect Road and related improvements, including without limitation public utilities, pedestrian, transit and bicycle access and improvements, landscaping, and such other related purposes as may now or in the future be determined appropriate, and hereby finds that such declaration is in the best interests of the City. -2- Section 3. That the City Clerk shall cause this Ordinance to be recorded in the real property records of the Larimer County Clerk and Recorder’s office once the Ordinance becomes effective in accordance with Article II Section 7 of the City Charter. Introduced, considered favorably on first reading, and ordered published this 19th day of January, A.D. 2016, and to be presented for final passage on the 2nd day of February, A.D. 2016. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 2nd day of February, A.D. 2016. __________________________________ Mayor ATTEST: _______________________________ City Clerk &YIJCJU" 1BHFPG EXHIBIT A "