HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 08/21/2018 - RESOLUTION 2018-077 AUTHORIZING A PARKING AGREEMENAgenda Item 22
Item # 22 Page 1
AGENDA ITEM SUMMARY August 21, 2018
City Council
STAFF
Helen Matson, Real Estate Services Manager
Ken Mannon, Operations Services Director
Ingrid Decker, Legal
SUBJECT
Resolution 2018- 077 Authorizing a Parking Agreement with Confluence FC, LLC for City Property at 424 Pine
Street.
EXECUTIVE SUMMARY
The purpose of this item is to authorize the City Manager to execute a parking agreement to allow Confluence
FC, LLC to share 17 parking spaces in the United Way parking lot at 424 Pine Street. United Way is the City's
tenant and in its existing lease, it has the right to use the parking lot for its purposes and to pay for the
maintenance of the lot.
STAFF RECOMMENDATION
Staff recommends the adoption of the Resolution.
BACKGROUND / DISCUSSION
Confluence is planning a residential development at the corner of Willow Street and Linden Street. During the
planning stage, Confluence identified space for thirty parking spaces at its site. Its lender is requiring
Confluence to also obtain the right to use some off-site parking. Confluence originally approached United Way
hoping to obtain the right to park in up to seventeen spaces in United Way’s lot on Pine Street, including seven
spaces that would be reserved for occupants of Confluence at all times. The other ten spaces would be for
use at any time weekday evenings, weekends from Friday evening to Monday morning, and holidays. See
Attachment 1 for a location map that shows the Confluence Development and the United Way parking lot. A
depiction of the restriped parking lot is provided as Attachment 2. The seven spaces that are reserved for
Confluence are highlighted in yellow.
This parking agreement was originally negotiated between United Way and Confluence, and they asked the
City to give its approval for the agreement. United Way has been leasing the Pine Street property from the City
since 1985, at a non-profit rate. Its current lease makes United Way responsible for all building and parking lot
maintenance and snow removal. However, these expenses have become a burden and United Way is now
looking at other locations to lease. With United Way likely to soon terminate its lease for the Pine Street
property, Operation Services has decided that it would be better for all if the City took over responsibility of the
parking lot and entered into the parking agreement with Confluence, with United Way’s consent as the current
tenant.
In exchange for the right to use the parking spaces, Confluence has agreed to repave the entire lot with
asphalt including mill and overlay. It will also restripe the parking lot, which adds ten parking spots.
Confluence estimates that these services will cost $70,000, which will be covered by Confluence. The City has
agreed to pay up to $30,000 if there are additional costs above the $70,000 estimate needed to repair
unexpected subsurface defects.
Agenda Item 22
Item # 22 Page 2
The initial term of the parking agreement would be for ten years. At the end of the initial term, if both parties
agree, the agreement could be extended for two successive five-year terms, with additional compensation to
be negotiated. If a new tenant leases the property, that lease would be made subject to the parking
agreement with Confluence.
The right to use parking spaces on the City’s property constitutes a license or revocable permit from the City
that, pursuant to the City Charter and Code, requires the City Council’s approval as the use will not be
completed in five years or less.
CITY FINANCIAL IMPACTS
City staff recommends approving this Parking Agreement with Confluence. Confluence will make necessary
improvements to the lot and its restriping plan shows an addition of 10 spaces. The $70,000 repaving costs
covers the fair market value of parking fees for the initial ten-year agreement. Any renewal terms would be
subject to negotiation of additional appropriate compensation.
ATTACHMENTS
1. Location Map (PDF)
2. Restriped parking area and designated parking spaces (PDF)
(United 424 PINE Way STREET Building)
LEGACY SENIOR
RESIDENCES
Drive t
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Aztla
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C
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p
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LEGACY SENIOR
RESIDENCES
PINE ST
WILLOW ST
POUDRE ST
LINDEN ST
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LOCATION MAP
United Way Boundary
United Way Mowing Area
Parks Irrigation Adjacent to United Way building
Additional Parking Area
Confluence Development
ATTACHMENT 1
ATTACHMENT 2
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RESOLUTION 2018-077
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING A PARKING AGREEMENT WITH CONFLUENCE FC, LLC
FOR CITY PROPERTY AT 424 PINE STREET
WHEREAS, the City is the owner of a parcel of real property located at 424 Pine Street
in Fort Collins (the “City Property”); and
WHEREAS, the City Property, which includes an office building and parking area is
presently occupied by United Way of Larimer County, Inc. (“United Way”), pursuant to a lease
agreement between United Way and the City; and
WHEREAS, Confluence FC, LLC (“Confluence”) has proposed a residential and
commercial development on nearby property at 401 Linden Street (the “Confluence Building”);
and
WHEREAS, Confluence will provide approximately 30 onsite parking spaces for
occupants of the Confluence Building, but is seeking additional offsite parking to meet its
lender’s requirements and the occupants needs; and
WHEREAS, the City and Confluence have negotiated a proposed parking agreement
(“Parking Agreement”) for the use of 17 parking spaces on the City Property for a period of ten
years (the “Initial Term”); and
WHEREAS, ten spaces would be non-exclusive and limited to use only on weekends,
holidays and at night, and seven spaces would be reserved for Confluence permit holders at all
times; and
WHEREAS, Confluence would issue parking permits to specific occupants for use of the
parking spaces; and
WHEREAS, as consideration for the Initial Term of the Parking Agreement Confluence
has agreed to repave and restripe the parking lot on the City Property at its expense in
accordance with City specifications, which work is estimated to cost $70,000; and
WHEREAS, City staff has determined that the value to the City of the parking
improvements is equivalent to the fair market value of the parking rights that would be granted to
Confluence for the Initial Term; and
WHEREAS, the proposed restriping plan for the parking lot would create an additional
10 parking spaces; and
WHEREAS, following the Initial Term, if the City and Confluence agree, the Parking
Agreement could be renewed for two additional five-year terms, but the parties would have to
agree on appropriate compensation to the City for each renewal; and
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WHEREAS, if the City wishes to terminate the Parking Agreement during the Initial
Term, the City would reimburse Confluence for a pro-rated portion of the repaving costs, subject
to annual appropriation of funds; and
WHEREAS, the Parking Agreement would be subject to approval by United Way as the
current tenant, and any future tenant on the City Property would lease the City Property subject
to the Parking Agreement; and
WHEREAS, Article XI, Section 10 of the City Charter authorizes the City Council to
permit the use or occupancy of any street, alley, or public place, provided that such permit shall
be revocable by the City Council at its pleasure, whether or not such right to revoke is expressly
reserved in such permit.
NOW, THEREFORE, BE IT RESOLVED 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 Manager is hereby authorized to execute the Parking
Agreement with Confluence on terms and conditions consistent with this Resolution, 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 or to
effectuate the purposes of this Resolution, including any necessary corrections to the legal
description of the City Property, so long as such changes do not result in a material increase or
change in character of the rights permitted under this Resolution.
Passed and adopted at a regular meeting of the Council of the City of Fort Collins this
21st day of August, A.D. 2018.
_________________________________
Mayor
ATTEST:
_____________________________
City Clerk