HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 12/15/2015 - POSTPONEMENT OF SECOND READING OF ORDINANCE NO. 14Agenda Item 2
Item # 2 Page 1
AGENDA ITEM SUMMARY December 15, 2015
City Council
STAFF
Tawnya Ernst, Real Estate Specialist III
John Stokes, Natural Resources Director
SUBJECT
Postponement of Second Reading of Ordinance No. 149, 2015, Authorizing the Conveyance of an Easement
on Maxwell Natural Area to the Board of Governors of the Colorado State University System to January 5,
2016.
EXECUTIVE SUMMARY
Staff requests postponement of Second Reading of Ordinance No. 149, 2015 until January 5, 2016, so that
Colorado State University staff can provide information on the University’s concerns regarding termination
language in the revised ordinance approved on First Reading on November 17, 2015.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on Second Reading.
ATTACHMENTS
1. First Reading Agenda Item Summary, November 17, 2015 (w/o attachments) (PDF)
2. Ordinance No. 149, 2015, as adopted on First Reading (PDF)
Agenda Item 10
Item # 10 Page 1
AGENDA ITEM SUMMARY November 17, 2015
City Council
STAFF
Tawnya Ernst, Real Estate Specialist III
John Stokes, Natural Resources Director
SUBJECT
First Reading of Ordinance No. 149, 2015, Authorizing the Conveyance of an Easement on Maxwell Natural
Area to the Board of Governors of the Colorado State University System.
EXECUTIVE SUMMARY
The purpose of this item is to authorize conveyance of a permanent easement to Colorado State University on
Maxwell Natural Area that will replace a 99-year lease for access to maintain the Aggie “A” on the Natural
Area. The Natural Areas Department proposes that the City enter into a permanent easement agreement with
the Board of Governors of the Colorado State University System (CSU) on Maxwell Natural Area. The
easement will replace a 99-year lease that provided CSU with access to maintain the Aggie “A” on the Natural
Area. The easement will also enable CSU and its students to carry out two other group activities that currently
require annual permits from Natural Areas. CSU’s current access typically has minimal impact to the Natural
Area and no additional impacts are anticipated. No other access rights are to be conveyed.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
BACKGROUND / DISCUSSION
In the late 1970s, the City Parks and Recreation Department acquired more than 160 acres from the Maxwell
family (the property is part of Maxwell Natural Area and is owned/managed by the Natural Areas Department -
see Attachments 1 and 2). At the time the land was purchased, the property was already subject to an
existing 99-year lease (set to expire on December 19, 2022) between R.G. Maxwell and the State Board of
Agriculture. The lease gives the State Board of Agriculture and its successors the right of ingress and egress
to the Maxwell property for the purpose of constructing and repairing the Aggie “A”. The “A” was constructed in
1923 and has been registered since 1995 on the Colorado State Register of Historic Properties as an example
of hillside monograms which are distinctive landmarks in western states. (Note: The “A” is not a set structure
(e.g., concrete) but instead consists of rocks and vegetation painted white in the shape of the letter. It is
approximately 450 feet long and 210 feet across.)
Over the years, CSU’s use of Maxwell Natural Area has expanded from maintenance of the “A” to include two
additional student activities: the annual freshman hike to the “A” and the lighting of the “A” at homecoming.
These activities, including the painting of the “A”, have necessitated multiple permits on a yearly basis since
Natural Areas has made special allowances for off-trail use for large groups (the painting of the “A” involves
upwards of 70 people). At the request of the City Manager’s office, Natural Areas staff began exploring
alternatives to the lease and permit arrangement to simplify the process for CSU and for Natural Areas.
Natural Areas staff met with CSU representatives earlier this year and discussed several options, including an
updated lease, a potential land trade, and a permanent easement. The parties agreed that a permanent
easement would provide the best solution - the easement enables NAD to retain management responsibilities
ATTACHMENT 1
Agenda Item 10
Item # 10 Page 2
and to conduct its own activities within the “A” area while eliminating the need for the annual permits and
updating the requirements for CSU’s activities. (A lease implies exclusive use of the property and could
potentially restrict Natural Area's ability to manage and maintain the land.)
The original lease contained very few details or parameters for CSU’s access to the “A”, simply stating the
State Board of Agriculture had “the right of ingress and egress to the said land for the purpose of constructing
and repairing the College letter “A”’”. The easement establishes the boundaries of CSU’s access and provides
ingress and egress to the “A” from County Road 23 via existing trails. (CSU is providing a survey of the
easement area. See Attachment 3 - Aerial Map of Proposed CSU Easement Area for a general depiction) In
addition, the easement outlines notification requirements and provides direction on the type of equipment and
paint used to light and paint the “A. The easement also spells out obligations for cleanup and repairs should
CSU’s activities generate debris or cause damage. All costs associated with construction, restoration or
maintenance of the “A” are to be borne by CSU.
Natural Areas is requiring low VOC latex paint and natural pigments to minimize the biological impacts of
continued use of the area by CSU. (The Environmental Protection Agency (EPA) defines low VOC latex paint
as that containing <251 g/L VOC.) The easement also includes a vegetation management plan by which CSU
may conduct minor vegetation maintenance in the area immediately adjacent to the “A” (e.g., pruning shrubs
such as Mountain Mahogany to a height of no less than 3 feet tall).
While staff appreciates the recommendation of the Land Conservation and Stewardship Board (LCSB) to enter
into a lease instead of a permanent easement, staff continues to recommend a permanent easement. Staff
believes that periodically renegotiating a lease defeats a key motivation for pursuing the easement, which is
relieving both the City and CSU from having to repeatedly revisit what both parties agree should be a long-
standing arrangement and agreement. Moreover, if the “A” should ever be abandoned by CSU, the City has
the right to terminate the easement with prior notice to CSU.
CITY FINANCIAL IMPACTS
NAD is requesting a nominal consideration for the easement in the amount of $100. There will be no additional
financial impact to NAD due to the fact that this is replacing an existing lease and that no new improvements
will be located on the property. Staff believes that this below market conveyance serves a bona fide public
purpose as required by Section 23-114 of the City Code because:
1. The use to which the Easement will be put promotes health, safety or general welfare and benefits a
significant segment of the citizens of Fort Collins, as the “A” has long been a major focal point for student
activities at CSU that help build the culture of the student body. Students comprise a significant portion of
our community and participation in “A”- related activities promotes community engagement and welfare.
2. The Easement and continued use and preservation of the “A” support the preservation of an historic
landmark and City Plan Principle LIV16: “The quality of life in Fort Collins will be enhanced by the
preservation of historic resources and inclusion of heritage in the daily life and development of the
community.”
3. The financial support provided by the City through the below-market disposition of the Easement will be
leveraged with other funding or assistance, including maintenance work by the CSU Alumni Association.
4. Conveyance of the Easement 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.
5. Conveyance of the Easement 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.
Agenda Item 10
Item # 10 Page 3
BOARD / COMMISSION RECOMMENDATION
The item was presented to the Land Conservation Stewardship Board (LCSB) on October 14, 2015. Five of nine
board members were present and voted unanimously to recommend that City Council consider a lease
arrangement instead of a permanent easement. The LCSB’s formal recommendation as outlined in a memo to
City Council dated November 3, 2015, is as follows:
1. The LCSB recommends to City Staff and to City Council that a permanent easement not be granted to CSU
or the State Board of Agriculture for access through the Maxwell Natural Area to the CSU "A."
2. That a new lease replace the remaining term of the 99-year lease that was established between the State
Board of Agriculture and the Maxwell family, which has an expiration date of 19 Dec 2022.
3. The new lease should be structured as an umbrella permit for uses that have required multiple special-use
permit applications from CSU and approval by City entities, thus removing the need for annual application and
approval, and should be specific about: (1) permitted routes and times (events) of access; (2) allowable
activities; (3) other conditions and restrictions that the Natural Areas Department (NAD) deems necessary.
(Attachments 4 and 5)
ATTACHMENTS
1. Location map (PDF)
2. Aerial map-Maxwell Natural Area (PDF)
3. Aerial map-proposed CSU easement area (PDF)
4. Land Conservation & Stewardship Board minutes, October 14, 2015 (PDF)
5. Land Conservation & Stewardship Board memo re: CSU access to Aggie "A" recommendation
(PDF)
ORDINANCE NO. 149, 2015
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE CONVEYANCE OF AN EASEMENT ON
MAXWELL NATURAL AREA TO THE BOARD OF GOVERNORS
OF THE COLORADO STATE UNIVERSITY SYSTEM
WHEREAS, the City owns a parcel of real property located in Larimer County, Colorado
that is part of Maxwell Natural Area and is more particularly described as the SW 1/4 of the NW
1/4 of Section 20, Township 7 North, Range 69 West of the 6
th
P.M. less Book 849 Page 242,
and less Book 1182, Page 409 of the Larimer County Records (the “Property”); and
WHEREAS, when the City purchased the Property in 1979 it was subject to an existing
99 year lease between the owner, R.G. Maxwell, and the State Board of Agriculture (the “1923
Lease”); and
WHEREAS, the 1923 Lease was intended to allow Colorado State University (“CSU”) to
access, construct and repair the Aggie “A” painted on the hillside near Hughes Stadium, and is
set to expire in 2022; and
WHEREAS, the “A” is listed on the Colorado State Register of Historic Properties, and is
therefore considered a landmark subject to Chapter 14 of the City Code; and
WHEREAS, Section 14-53 of the City Code requires the owner of a site or object
designated as a landmark to maintain the site or object to prevent it falling into a state of
disrepair that would have a detrimental effect on its historic character; and
WHEREAS, over the years CSU’s activities surrounding the “A” have increased,
resulting in the Natural Areas Department (“NAD”) City issuing multiple administrative permits
every year for such activities; and
WHEREAS, to simplify this process, CSU and NAD agree thatthe City Council desires
that a permanent ten-year easement automatically renewed for successive ten-year terms, unless
either party elects to terminate after notice to the other party, which easement would replace the
1923 Lease, is the most appropriate solution; and
WHEREAS, CSU has asked the City to grant it a non-exclusive, permanent easement
over the area described on Exhibit “A”, attached and incorporated herein by reference (the
“Easement”); and
WHEREAS, the Easement would spell out in more detail than the 1923 Lease what
activities CSU can conduct on the Property, what materials CSU can use on the Property, and
cleanup, restoration and maintenance obligations; and
WHEREAS, Section 23-111(a) of the City Code authorizes the City Council to sell,
convey or otherwise dispose of any interest in real property owned by 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; and
WHEREAS, City staff has concluded that granting the easement to CSU is the best way
for the City to manage CSU’s access to the “A” on the Property; and
WHEREAS, NAD is proposing to charge only nominal consideration for the Easement in
the amount of $100; and
WHEREAS, under Section 23-114 of the City Code, any sale of City property interests
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 serves a bona fide public purpose, based on the five
factors listed in Section 23-114; and
WHEREAS, staff believes that the conveyance of the Easement to CSU for less than fair
market value serves a bona fide public purpose because:
(1) The use to which the Easement will be put promotes health, safety or general
welfare and benefits a significant segment of the citizens of Fort Collins, as the
“A” has long been a major focal point for student activities at CSU that help build
the culture of the student body. Students comprise a significant portion of our
community and participation in “A”- related activities promotes community
engagement and welfare;
(2) The Easement and continued use and preservation of the “A” supports the
preservation of an historic landmark and City Plan Principle LIV16: “The quality
of life in Fort Collins will be enhanced by the preservation of historic resources
and inclusion of heritage in the daily life and development of the community;”
(3) The financial support provided by the City through the below-market disposition
of the Easement will be leveraged with other funding or assistance, including
maintenance work by the CSU Alumni Association;
(4) Conveyance of the Easement 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) Conveyance of the Easement 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;
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 City’s conveyance of the
Easement to the Board of Governors of the Colorado State University System as provided herein
is in the best interests of the City.
Section 2. That the City Council further finds that such conveyance for less than fair
market value serves a bona fide public purpose for the reasons stated in the recitals above.
Section 3. That the Mayor is hereby authorized to execute such documents as are
necessary to terminate the 1923 Lease and convey the Easement to the Board of Governors of the
Colorado State University System 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 are necessary or appropriate to protect the interests of the City,
including, but not limited to, any necessary changes to the legal descriptions of the Easement, as
long as such changes do not materially increase the size or change the character of the interest to
be conveyed.
Introduced, considered favorably on first reading, and ordered published this 17th day of
November, A.D. 2015, and to be presented for final passage on the 1st day of December, A.D.
2015.
__________________________________
Mayor
ATTEST:
_____________________________
Deputy City Clerk
Passed and adopted on final reading on this 1st day of December, A.D. 2015.
__________________________________
Mayor
ATTEST:
_____________________________
City Clerk