HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 03/06/2018 - FIRST READING OF ORDINANCE NO. 039, 2018, AUTHORIZAgenda Item 8
Item # 8 Page 1
AGENDA ITEM SUMMARY March 6, 2018
City Council
STAFF
Ashley Macdonald, Real Estate Specialist I
Helen Matson, Real Estate Services Manager
Ken Mannon, Operations Services Director
Mike Calhoon, Parks Supervisor
Ryan Malarky, Legal
SUBJECT
First Reading of Ordinance No. 039, 2018, Authorizing the Lease of City-Owned Property Located at 211
South Bryan Avenue to the Fort Collins Baseball Club, Inc.
EXECUTIVE SUMMARY
The purpose of this item is to obtain approval for a lease of City-owned property located at 211 South Bryan
Avenue to the non-profit corporation Fort Collins Baseball Club (FCBC). FCBC provides recreational programs
to citizens and non-profit organizations. FCBC is requesting a less than market lease rate of $25 per year for a
period of up to 25 years (10-year lease with 3 five-year extensions at the City’s option).
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
BACKGROUND / DISCUSSION
The City Parks and Recreational Department has collaborated with a local Colorado Nonprofit Corporation
known as the Fort Collins Baseball Club Inc., (FCBC), to provide recreational programs to the citizens and
non-profit organizations in the City since 1983. FCBC expands recreational programming that may not be
otherwise offered by the City due to limited funding and the increased demand for use of City facilities. The
partnership has proven successful and the parties subsequently entered into additional consecutive leases in
November of 1991 and 2007.
On November 6, 2007, City Council adopted Ordinance No. 113, 2007, authorizing the lease of the 211 South
Bryan Avenue space to FCBC. FCBC has expressed a strong interest in executing a new lease to continue
providing recreation opportunities to citizens.
Goals and objectives of the City of Fort Collins Parks and Recreation Policy Plan that may benefit from the
execution of the lease with FCBC include:
• Goal 6, because it is a collaborative effort to attract more residents and visitors to utilize and
participate in Fort Collins’s Park and Recreation services and facilities.
• Goal 8, because it supports the objective to create a seamless and cohesive customer service delivery
system for the provision of all park and recreation programs and services regardless of location.
Agenda Item 8
Item # 8 Page 2
CITY FINANCIAL IMPACTS
Annual rent collected from this lease will result in $25 per year in commercial rent revenue for a total of $375
over the course of 25 years. Rent for this space is based on the lease rate determined by staff for a bona fide
non-profit organization like FCBC. FCBC will be responsible for expenses of all utilities, maintenance,
communication services, trash services, janitorial services, and taxes. In addition, it will be the obligation of
FCBC for any tenant finish costs. The City will be responsible for ground maintenance costs surrounding the
purposed leased premises.
BOARD / COMMISSION RECOMMENDATION
At its January 24, 2018 meeting, the Parks and Recreation Board unanimously voted to recommend approval
of the lease.
ATTACHMENTS
1. Location Map (PDF)
2. 211 S Bryan Lease with Exhibits (draft) (PDF)
3. Parks and Recreation Board minutes, January 24, 2018 (draft) (PDF)
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Parks and Recreation Board
January 24, 2018
Minutes Excerpt (draft)
Fort Collins Youth Baseball lease of the Scout House – Fort Collins Youth Baseball, a non-profit, leases
of the Scout House at City Park as their administrative office. The City Manager can lease a property to
an organization at a lower cost if it is for the common good. Recreation doesn’t provide Youth Baseball
program because of the great program operated by Fort Collins Youth Baseball. The lease is $25 per
year. The administrator, Thad Anderson, for the organization has a great relationship with the city.
Jessica MacMillan has made a motion to support the renewal of the Fort Collins Youth Baseball lease
of the Scout House. Seconded by Bruce Henderson.
Motion approved 5:0
ATTACHMENT 3
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ORDINANCE NO. 039, 2018
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE LEASE OF CITY-OWNED PROPERTY AT
211 SOUTH BRYAN AVENUE TO THE FORT COLLINS BASEBALL CLUB, INC.
WHEREAS, the City of Fort Collins is the owner of the property located west of the
intersection of West Oak Street and South Bryan Avenue, commonly known as the City Park
Ballfields (the “Property”); and
WHEREAS, located on the Property is a building identified as 211 South Bryan Avenue,
Fort Collins, Colorado, 80524 (the “Premises”); and
WHEREAS, since 1983, the City has been leasing the Premises to the Fort Collins
Baseball Club, Inc. (formerly the Youth Baseball Association), a local non-profit corporation
(“FCBC”); and
WHEREAS, FCBC’s most recent lease has expired, and FCBC desires to continue
leasing the Premises for up to twenty-five years, beginning with a ten-year term and followed by
three five-year extensions at the City’s option; and
WHEREAS, rent for the Premises would be $25 per year, in recognition of the
community benefits derived from FCBC’s recreational and competitive baseball programming;
and
WHEREAS, FCBC would pay for all utilities, building maintenance, communication
services, trash services, janitorial services and taxes related to the Premises; and
WHEREAS, City staff believes it is in the best interests of the community to continue
leasing the Premises to FCBC; and
WHEREAS, under Section 23-113(b) of the City Code, the City Council may lease any
and all interests in real property owned in the name of the City if the City Council first finds that
the lease is in the best interests of the City; and
WHEREAS, if the proposed term of the lease exceeds twenty years, the lease must be
approved by the City Council by ordinance; and
WHEREAS, under Section 23-114 of the City Code, any sale or lease 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 or lease serves a bona fide public purpose,
based on the five factors listed in Section 23-114; and
WHEREAS, leasing the Premises to FCBC for less than fair market value serves a bona
fide public purpose because:
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(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 by
providing recreational and competitive baseball programming that promotes
community engagement and health;
(2) The proposed lease supports Goals 6 and 8 of the Fort Collins Parks and
Recreation Policy Plan because it is a collaborative effort to attract more residents
and visitors to use and participate in Park and Recreation services and facilities,
and it helps create a seamless and cohesive customer service delivery system;
(3) The financial support provided by the City through the below-market lease of the
Premises will be leveraged with other funding and assistance received by FCBC;
(4) The 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) 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.
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 leasing the Premises located at 211
South Bryan Avenue under the terms listed above is in the best interests of the City.
Section 3. That the City Council further finds that such lease for less than fair market
value serves a bona fide public purpose for the reasons stated in the recitals above.
Section 4. That the City Manager is hereby authorized to execute a lease agreement
for the Premises 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 and appropriate to protect the interests of the City, including any
necessary changes to the legal description of the Premises, as long as such changes do not
materially increase the size or change the character of the Premises leased.
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Introduced, considered favorably on first reading, and ordered published this 6th day of
March, A.D. 2018, and to be presented for final passage on the 20th day of March, A.D. 2018.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
Passed and adopted on final reading on the 20th day of March, A.D. 2018.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk