Loading...
HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 09/18/2018 - SECOND READING OF ORDINANCE NO. 117, 2018, AUTHORIAgenda Item 4 Item # 4 Page 1 AGENDA ITEM SUMMARY September 18, 2018 City Council STAFF Ashley Macdonald, Real Estate Specialist I Kerri Allison, Real Estate Specialist II Chad Crager, Director of Infrastructure Services Timothy Kemp, Civil Engineer III Ingrid Decker, Legal SUBJECT Second Reading of Ordinance No. 117, 2018, Authorizing the Sale of City-Owned Property at 4030 South Taft Hill Road, and the Dedication of Right-of-Way and Easements on Such Property to Larimer County. EXECUTIVE SUMMARY This Ordinance, unanimously adopted on First Reading on September 4, 2018, obtains authorization from City Council to sell 1.15 acres of City-owned property located at 4030 South Taft Hill Road, at a sales price of no less than $165,000, and convey right-of-way and easements to Larimer County through deeds of dedication. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. First Reading of Agenda Item Summary, September 4, 2018 (w/o attachments) (PDF) 2. Ordinance No. 117, 2018 (PDF) Agenda Item 12 Item # 12 Page 1 AGENDA ITEM SUMMARY September 4, 2018 City Council STAFF Ashley Macdonald, Real Estate Specialist I Kerri Allison, Real Estate Specialist II Chad Crager, Director of Infrastructure Services Timothy Kemp, Civil Engineer III Ingrid Decker, Legal SUBJECT First Reading of Ordinance No. 117, 2018, Authorizing the Sale of City-Owned Property at 4030 South Taft Hill Road, and the Dedication of Right-of-Way and Easements on Such Property to Larimer County. EXECUTIVE SUMMARY The purpose of this item is to obtain authorization from City Council to sell 1.15 acres of City-owned property located at 4030 South Taft Hill Road, at a sales price of no less than $165,000, and convey right-of-way and easements to Larimer County through deeds of dedication. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION The City of Fort Collins Engineering Department acquired land at the northeast corner of Harmony Road and Taft Hill Road (parcels 973420904 and 973420905) for $110,500 through a final Rule and Order in eminent domain proceedings in June 2001 for the Harmony Road widening project. The property appraised for $90,000 in April 1999. The City Engineering Department no longer needs the property and would like to put it on the open real estate market for sale. The property presents several challenges for future development, including zoning restrictions for development, access due to its location on the corner of two arterial streets, and stormwater drainage remediation. In accordance with the City’s Master Street Plan, Taft Hill Road will eventually be improved to four- lane arterial standards. Since the parcels are currently located outside the city limits, Real Estate Services has been working with Larimer County to coordinate dedication to the County of the portions of the parcels needed to accommodate right-of-way and easements as indicated in the arterial standards before the property is sold. The City Engineering Department is currently responsible for ground maintenance costs, including mowing and weed control. Selling the property would relieve the City of this obligation. The land was offered internally to other City departments in the late summer 2017 and no interest was indicated at that time. Industry reports indicate that the commercial market is stable. A comparable market evaluation was completed by the Real Estate Services Department in the fall 2017 and first quarter 2018. Staff is requesting authorization to sell the parcels at no less than $165,000; however, the list price of $189,900 is recommended. ATTACHMENT 1 Agenda Item 12 Item # 12 Page 2 CITY FINANCIAL IMPACTS The consideration from the sale of this property will be placed back in the City of Fort Collins Engineering budget. Staff recommends not charging the County for the right-of-way and easements because they will be used for a joint City/County road widening project that will eventually be owned by the City again when the area is annexed. ATTACHMENTS 1. Location map (PDF) -1- ORDINANCE NO. 117, 2018 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE SALE OF CITY-OWNED PROPERTY AT 4030 SOUTH TAFT HILL ROAD, AND THE DEDICATION OF RIGHT-OF-WAY AND EASEMENTS ON SUCH PROPERTY TO LARIMER COUNTY WHEREAS, the City is the owner of real property located at 4030 South Taft Hill Road in Larimer County more particularly described as Lots 3, 4 and 5, Block 2, Westfield Subdivision, except the most easterly 50 feet thereof (the “Property”); and WHEREAS, the Property is not yet annexed into the City but is within the Growth Management Area; and WHEREAS, the City acquired the Property in 2001 as part of the Harmony Road and Taft Hill Road intersection project; and WHEREAS, the City does not need the remainder of the Property and City staff recommends selling it rather than continuing to maintain it; and WHEREAS, City staff is requesting Council authorization to sell the Property on the open market, subject to existing easements and rights-of-way, for no less than $165,000, up to approximately $189,900, which range staff believes is a fair market value for the Property; and WHEREAS, within the next several years the City and Larimer County (the “County”) plan to undertake a joint project to widen Taft Hill Road adjacent to the Property (the “Project”); and WHEREAS, as part of the Project, the owner of the Property would be required to dedicate portions of the Property for right-of-way and related easements; and WHEREAS, City and County staff believe it would be simplest for the City to convey the necessary property interests for the Project to the County before the Property is sold to a third party, and that this approach would also provide the most transparency to potential purchasers of the Property about how much of the Property will be developable; and WHEREAS, the proposed right-of-way dedication, approximately .5 acres in size, is described and shown on Exhibit “A”, attached hereto and incorporated herein by reference (the “Right-of-Way”); and WHEREAS, a proposed slope and drainage easement to be conveyed to the County, approximately .15 acres in size, is shown on Exhibit “B”, attached hereto and incorporated herein by reference (the “Drainage Easement”); and WHEREAS, a proposed utility easement to be conveyed to the County, approximately 633 square feet in size, is shown on Exhibit “C”, attached hereto and incorporated herein by reference (the “Utility Easement”); and -2- WHEREAS, the City does not intend to charge the County for the Right-of-Way and Easements because they are in furtherance of a joint City/County road project, and when the Property and the road are annexed, ownership of the Right-of-Way and Easements will revert to the City; 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; 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, conveying the Right-of-Way and Easements to the County for less than fair market value serves a bona fide public purpose because: (1) The use to which these property interests will be put promotes health, safety or general welfare and benefits a significant segment of the citizens of Fort Collins by allowing for the future widening of an arterial street; (2) Widening Taft Hill Road to four lanes in this location is consistent with the City’s Master Street Plan; (3) The financial support provided by the City through the below-market conveyance of the property interests will be leveraged with other funding and assistance from Larimer County for the Project; (4) The conveyance of these property interests 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) Conveying these property interests 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 sale of the Property as provided herein is in the best interests of the City. -3- Section 3. That the City Council hereby finds that the conveyance of the Right-of-Way and Easements to the County prior to the sale of the Property as provided herein is in the best interests of the City. Section 4. That the Mayor is hereby authorized to execute the deeds necessary to convey the Property, the Right-of-Way and the Easements, and the City Manager is authorized to execute such other documents related to the property conveyances as may be necessary, all 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 such property interests, as long as such changes do not materially increase the size or change the character of the interests to be conveyed. Introduced, considered favorably on first reading, and ordered published this 4th day of September, A.D. 2018, and to be presented for final passage on the 18th day of September, A.D. 2018. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 18th day of September, A.D. 2018. __________________________________ Mayor ATTEST: _______________________________ City Clerk EXHIBIT A EXHIBIT B EXHIBIT C