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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 08/15/2017 - FIRST READING OF ORDINANCE NO. 020, 2017, AUTHORIZAgenda Item 25 Item # 25 Page 1 AGENDA ITEM SUMMARY August 15, 2017 City Council WITHDRAWN FROM CONSIDERATION STAFF John Stokes, Natural Resources Director Mark Sears, Natural Areas Manager Ingrid Decker, Legal SUBJECT First Reading of Ordinance No. 020, 2017, Authorizing the Conveyance of a Portion of City-Owned Property at Running Deer Natural Area to Big Foot Properties, LLC. EXECUTIVE SUMMARY The purpose of this item is for City Council to consider the proposed sale of approximately 11.85 acres of land to Big Foot Properties, LLC, (Roger Hageman, Hageman Earth Cycle (HEC)). About eight months ago, the City Manager’s Office inquired about the possibility of selling approximately 15 acres of land to HEC. The land was purchased by the City’s Natural Areas Department eighteen years ago, along with additional land for Running Deer Natural Area. Prior to the City’s purchase, the 15 acres was leased by HEC for the operation of a yard waste/organic material recycling business. The land has continued to be leased to HEC and the current lease will expire in 2018. The proposed sale area has been reduced to 11.85 acres after exclusion of a wetland and boundary adjustments. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION City Council considered the proposed land sale on January 17, 2017 and postponed action until staff was able to research and respond to two additional options: (1) A long-term lease; and, (2) a sale of the land without restrictions to maximize value and to enable purchase of additional lands along the Poudre River. Council also directed staff to develop land disposition and leasing guidelines (Attachments 9 and 10). The original proposal to City Council contemplated a sale Hageman Earth Cycle that would have restricted the use of the site until the business ceased to operate. Upon cessation of business activities, the City would have the option of buying back the property at an indexed value. Staff discussed Option 1, a long-term lease, with Roger Hageman. He stated that he would not consider a long-term lease; it would not work for him. If he is not able to purchase the land, he may discontinue the organic recycling aspect of his business. With respect to Option 2, a sale without restrictions, the appraisal determined that the value of the property with its current T-Transitional zoning ($255,000) is the same as the value of the property with the proposed deed restrictions (Attachment 8-excerpt from the appraisal). T-Transitional zoning limits the site to its existing use although the zoning could be changed with Planning and Zoning Board approval. Roger Hageman has verbally agreed to pay $300,000 for the 11.85 acres without Agenda Item 25 Item # 25 Page 2 restrictions. While the City would net an additional $45,000, it would forego the deed restrictions limiting the use of the site to organic recycling and the guaranteed buyback provision if the business were to cease operations. Based on Mr. Hageman’s response to Option 1, and the fact that Option 2 does not provide the same level of protection to the site as the original proposal, staff believes the original proposal best meets and protects the City’s interests. Additional Background and Original Proposal The 11.85 acres were acquired as part of a 94.82-acre purchase in 1998 from Flatiron Companies for $6,540 per acre. The current appraised value of the 11.85 acres with the restrictions as described below is $21,610 per acre or a total of $255,000. Proceeds from the sale of any natural area must be reinvested by the City in natural area initiatives; the proceeds may not be diverted to another purpose. As a matter of practice, lands acquired by the City for natural area purposes are not sold. Occasionally, the Natural Areas Department will acquire land that it intends to sell in the future. In addition, occasionally, an unexpected situation or opportunity arises that might warrant a sale. Those situations are described more fully in the attached Land Disposition Guidelines. The proposed sale is best aligned, although not perfectly, with Guideline 3: “A parcel is purchased that no longer meets the intent for which it was purchased.” The Guidelines also note that Council may direct staff to sell property for any purpose it deems appropriate. Moreover, as the Guidelines note in their introduction, “it is not possible to anticipate every situation that could arise.” Based on these considerations, staff believes the sale is congruent with the Guidelines. Natural Areas proposes to sell the 11.85 acres of land with the following restrictions and conditions:  Per a Warranty Deed Restriction the 11.85 acres of land can only be used for recycling yard waste and other organic materials and no permanent structures can be constructed.  The City’s Natural Areas will have the right to buy back the 11.85 acres of property as described in a Buyback Agreement (which will be a recorded document and referred to in the Warranty Deed) if the owner decides to no longer use the land for recycling yard waste and other organic materials. o The buyback price will be the $255,000 purchase price plus an escalator. The escalator will be calculated by multiplying the purchase price times the percentage difference between the Larimer County Assessor’s assessed value of the property in the first full tax year after the date of the deed, and the assessed value of the property as of the date of the sale offer. o The property must be in a clean and well-graded state, more specifically described as: no hazardous materials left on site; no environmental remediation needed per the City’s Phase I and/or Phase II reports; all stock piles of materials removed; all berms removed; and all owner’s equipment and materials removed. o If the owner does not clean up the property, the City may decide to close on the property and deduct from the sale price the City’s reasonable estimated costs to clean up the site.  If the City decides not to purchase the land back, the deed restriction will be released and the owner or future owners will be able to pursue other uses for the land as may be allowed through the planning and zoning process at the time.  Prior to closing, the buyer will remove berms from the portion of the property that the City will be keeping.  Natural Areas will reseed disturbed areas on retained City property.  Hageman is required to construct and vegetate earth berms to provide screening in certain locations, and agrees to deposit $10,000 in escrow for a period up to five years. Once the berms and vegetation meet certain standards, the City will release the escrowed funds. If Hageman has not met the standards prior to five years, the escrow funds will be released to the City.  Natural Areas will construct a double rail wooden fence along certain boundaries to define the boundary, to minimize trespassing, and to help catch blowing trash.  Natural Areas will install carsonite boundary markers every 40’ and at corners in certain areas to define the Agenda Item 25 Item # 25 Page 3 boundary.  The land can only be used for recycling yard waste and other organic materials and no permanent structures can be constructed. CITY FINANCIAL IMPACTS Big Foot Properties, LLC, (Hageman Earth Cycle) will pay Natural Areas $255,000 for the approximately 11.85 acres of land. BOARD / COMMISSION RECOMMENDATION The Land Conservation and Stewardship Board (LCSB) voted unanimously, at its regular meeting on December 14, 2016 to recommend that City Council not approve the sale of approximately 11.85 acres of land that originally was purchased with Running Deer Natural Area. (Attachments 2-5) The Board recommends a compromise: grant a 10 year lease along with the possibility of two 5-year extensions. The Natural Resources Advisory Board voted 7-1, at its regular meeting on December 14, 2016 to recommend that City Council not approve the sale of approximately 11.85 acres of land that originally was purchased with Running Deer Natural Area. (Attachment 6) PUBLIC OUTREACH Staff held two meetings on site for members of Council and the Land Conservation and Stewardship Board (LCSB) to tour the Hageman Earth Cycle property and the Running Deer Natural Area property being proposed to sell. Staff discussed the proposed sale with the LCSB at three regular meetings and with the Natural Resources Advisory Board at one regular meeting. City Council considered the proposal at its January 17 meeting. ATTACHMENTS 1. Hageman Site Location (PDF) 2. Land Conservation and Stewardship Board Memo, September 8, 2016 (PDF) 3. Land Conservation and Stewardship Board Memo, November 1, 2016 (PDF) 4. Land Conservation and Stewardship Board minutes, December 14, 2016 (PDF) 5. Land Conservation & Stewardship Board memo, August 7, 2017 (PDF) 6. Natural Resources Advisory Board Memo, December 21, 2016 (PDF) 7. Hageman Site Work Exhibits (PDF) 8. Appraisal Excerpt (PDF) 9. Land Disposition Guidelines (PDF) 10. Land Lease Guidelines (PDF) 11. Powerpoint presentation (PDF) Esri, HERE, DeLorme, MapmyIndia, © OpenStreetMap contributors Hageman Site Location Created by City of Fort Collins Natural Areas - 2016 Hageman Site Location City of Fort Collins NA Larimer County DNR City of Loveland NA CSU State of Colorado GOV.GMA 0 0.5 1 2 3 Miles ² ATTACHMENT 1 Natural Areas Department 1745 Hoffman Mill Road PO Box 580 Fort Collins, CO 80522 970.416.2815 970.416.2211 - fax fcgov.com/naturalareas DATE: September 8, 2016 TO: Mayor and City Council members FROM: Kent Leier, Chair, Land Conservation and Stewardship Board RE: Proposed sale of Natural Areas land to Hageman Earth Cycle The Land Conservation and Stewardship Board (LCSB) would like to reiterate our strong opposition to the sale of Running Deer land to a private business. We voted unanimously on June 8, 2016, to oppose the sale of a portion of the Running Deer Natural Area for a non-natural area use--i.e. sale to Hageman Earth Cycle (HEC) and we remain unanimous in our recommendation. We encourage the Council to protect our valuable Running Dear Natural Area by opposing this sale. We do believe that a moderate lease extension is a reasonable solution to support the City’s mulching goals. The Board opposes such a sale based on the following: 1. The Board believes that the Natural Areas Department (NAD) being urged to sell natural area land for a non-natural area use sets a negative precedent that is a breach of trust of our citizens who voted overwhelmingly to tax themselves to conserve open land. The latest extension of the County Open Space Yes tax won by an unprecedented 82% in the County—even higher in the City of Fort Collins. Any sales of Natural Area land will be perceived as a violation of trust by the Citizens of Fort Collins. 2. Such a sale is not in keeping with the mission of the Natural Areas program. The primary mission of the Natural Areas Department is the conservation and restoration of land and habitat. It is not to provide private business opportunities regardless of the use or the City's support of that use. The previous landowner sold this land to NAD with the understanding that it would be preserved as open space and habitat. It is extremely important that NAD maintain the trust of willing land sellers for the program's future success. 3. When restored, these 15 acres of Running Deer Natural Area will provide valuable upland habitat in close proximity to the riparian areas of the Poudre River. These restored acres will add significant habitat diversity available to wildlife along this key segment of the river. 4. Previously, the LCSB/NAD has operated in good faith agreeing with the temporary rental of this property with the future goal of habitat restoration. It was made very clear that these leases should be temporary and Hageman Earth Cycle (HEC) was asked to locate other property if necessary to augment their currently owned property along Prospect Road. HEC has had many years to pursue other options. ATTACHMENT 2 2 HISTORY: June, 1998: Flatiron Companies sold the 15 acres in question to the City NAD in lieu of selling the property to Mr. Hageman, though he expressed interest in the purchase. HEC has been leasing the land from the City’s NAD since this time. There is a long documented history of the City’s commitment to restoring this valuable habitat and in communicating to Mr. Hageman that this lease is temporary. HEC’s failure to secure another site should not be borne by the habitat of Running Deer nor the Citizens of Fort Collins. The City has been more than accommodating with over 18 years of total lease extensions and has been very clear in setting expectations that other land needed to be found. A few examples include: 1. Dec. 18, 2000: A letter to Mr. Hageman from the City Manager states that the “sale of the property would not be in the best interests of the City and would be contrary to several policies adopted by the City Council. The City’s Comprehensive land use plan identified this area as open land which is not intended to be developed, now or in the future.” 2. Jan. 5, 2001: a letter from Mr. Hageman to a Council member reiterates that he will “most likely need to shut down the receiving of compostable material and notify those who use our facility of the closure” if the land is simply leased and not sold to him. However, HEC’s operation has remained consistently in business. 3. Jan. 9, 2001: memo from the NAD Director to the City Manager states that in 1999 the City had found two viable properties as alternatives and offered to work “in a collaborative relationship”. It is noted that in 2000, the NA Director also discussed the mulching options with Larimer County who was interested in looking at wood/yard waste diversions on their property and HEC was encouraged to work with Larimer County. All options were rejected by HEC. 4. April 25, 2001: A memo from the NA Board to Council stated that “it is important for the City to begin the restoration of the property and integrate it into the remainder of Running Deer Natural Area within a reasonable amount of time.” LONG RANGE STRATEGY: The City needs a long range strategy for organic materials mulching and composting: At best the 15 acres currently being leased to supplement the HEC operation is only a stop gap measure. A much larger site overall will be needed to accommodate the City’s growth. Plus, this site is not appropriate to compost material. The need for a larger, comprehensive facility is underlined by the fact that currently the nearest composting facility is in Fort Lupton. We understand the long range planning by the County’s Regional Wasteshed Coalition formed in anticipation of the County landfill closure in 2025 includes an evaluation of an organics processing facility. A lease of up to 20 years is more than adequate to deal with the shorter term needs of the City. COMPROMISE: The LCSB has already offered a very generous compromise. In this spirit the LCSB has recommended that NAD grant another 10-year lease along with the possibility of two 5-year extensions of leasing this land to support the City's sustainability goal of yard waste mulching. This gives the City and HEC ample opportunity to search for a permanent and long range solution that does not involve City Natural Area lands. We encourage the City to continue to pursue the possible partnership with Larimer County's Solid Waste Department as there are advantages of 3 co-locating organic waste recycling with other waste management activities. (And has the current landfill site been evaluated for a potential mulching location when this site is vacated by the County?) An appropriate future site for mulching operations could, be on a publicly owned, privately operated resource recovery site. PROTECTION OF VALUABLE HABITAT: the LCSB strongly recommends that the following actions be taken to minimize the impact on the Running Deer Natural Area habitat. These actions are needed regardless of lease or sale: 1. A barrier of land around the perimeter of the property used by Hageman should include a buffer zone complete with adequate berms and native plantings. This barrier to be provided by HEC and approved by NAD is needed to protect the view shed and habitat for birds and other wildlife using Running Deer and surrounding natural areas. 2. Moreover, a small wetland contained within the center of the property should be exempt from a sale and retained by NAD and preserved as wildlife habitat. It is difficult to determine the exact amount of land required to be held out of the sale for habitat protection without an on-the-ground survey, but an estimate would be approximately 3-4 acres. In the case of a lease extension, this wetland area will be protected by HEC and not used in the operation. 3. Land use by HEC should be feathered in intensity so that the higher intensity of noise and commotion occur in the center and north areas, away from the edges to reduce the noise and visual impacts to Running Deer habitat. 4. Other issues needed to be addressed include: stream protection, height of material piles, placement of roads, lighting, and other protective and aesthetic concerns. 5. NAD personnel should no longer be the Point of Contact for the city in its relationship with HEC. This responsibility should pass to someone within the Sustainability Department. The Sustainability Department will need to monitor to ensure the protective requirements are being met. 6. In case of a sale, a detailed map of land use and improvements proposals will need to be submitted by HEC for NAD approval before any sale takes effect. 7. All the above criteria should be specific and enforceable and be included in a lease extension agreement or sale contract. PROTECTING ALL NATURAL AREAS FROM SALES FOR OTHER USES: If a sale would occur, a clear statement must be made by Council that this is an exceptional case and does not establish a precedent for selling natural area properties. The latest extension of the County Open Space Yes tax won by an unprecedented 82%. Sales of Natural Area land will be perceived as a violation of trust by the Citizens of Fort Collins. Natural Areas Department 1745 Hoffman Mill Road PO Box 580 Fort Collins, CO 80522 970.416.2815 970.416.2211 - fax fcgov.com/naturalareas MEMORANDUM DATE: November 1, 2016 TO: Mayor & City Councilmembers FROM: Kent Leier, Chair, Land Conservation and Stewardship Board RE: Sale of portion of Running Deer Natural Area The LCSB continues to strongly oppose the proposed sale of a portion of Running Deer Natural Area (RDNA) to Hageman Earth Cycle (HEC), which currently leases and occupies the land in question. The Natural Areas Department (NAD) recommends selling the land with deed restrictions requiring: (1) current use only; and (2) a first offer of sale to the City at the current price adjusted by a pre-agreed inflation factor. If the situation were reversed, with HEC now owning the land and offering it for sale at a fair price, then LCSB would be recommending its purchase, ecological restoration, and addition to RDNA—where it would provide valuable upland habitat and protection of the Prospect Rd viewshed. Sale of the parcel unnecessarily introduces uncertainties about its long term fate. First, the timing of opportunity for repurchase from HEC becomes unclear. Second, if HEC offers the land for sale and the City does not exercise its repurchase option, then the land may be converted to any use allowed by zoning, potentially adversely affecting both the land’s condition and later opportunities for repurchase. If unforeseen circumstances, such as bankruptcy of HEC, were to occur, then the future of the parcel becomes even murkier. The increasing difficulty and expense of acquiring land for Natural Areas within the Urban Growth Area argues against the uncertainties involved in this proposed sale—uncertainties that can be avoided entirely by retaining title to the property. LCSB and others have previously commented on the potential for perceived breach of City fiduciary responsibility when selling Natural Area lands. This proposed sale has been rationalized by HEC’s continuous occupation of the site, which began before City ownership. Nevertheless, the public voted to tax itself for purchase of Natural Areas, and the same public reasonably expects that Natural Areas will be passed to generations yet to come, and that Natural Areas will not be sold for the shorter term convenience of commercial interests. LCSB recognizes the valuable services that HEC provides to the City, but LCSB asserts that the preservation of Natural Areas is a higher purpose and that HEC can operate successfully elsewhere. With the City and County working toward new waste processing facilities, LCSB believes that waste processing sites will be good candidates for relocation of HEC operations. A new lease of the RDNA parcel to HEC—with termination of the lease coupled to opening of new waste facilities—would be, in LCSB’s opinion, the best plan. ATTACHMENT 3 Land Conservation & Stewardship Board December 14, 2016 Meeting Minutes Excerpt Running Deer Natural Area – Proposed Land Sale to Hageman Earth Cycle John Stokes, Director of Natural Areas Department, made a brief presentation and reported on the Natural Resources Advisory Board’s reaction to the Running Deer Natural Area property sale. He and LCSB Members Joe Piesman and Raymond Watts attended the NRAB meeting this evening. John reported they voted 7-1 vote to recommend that Council not approve the sale of the property. John reviewed a handout that described the changes that would be made to the site should the sale should go forward. Discussion Board members, although opposed to the sale of the land, were very appreciative to Mark and John for listening to the board’s recommendations, the sale conditions, implementing some of those recommendations and being patient with the board’s opposition to selling the land. Raymond asked if City Council agreed to a lease instead of the sale would all the recommendations and stipulations remain the same in the lease. Mark agreed that the site changes being proposed would remain should a lease be the final outcome. Kelly feels that without seeing the actual purchase agreement document he would remain opposed to the sell. He stated that he would oppose future land sales if he is not allowed to see the actual purchase agreement document. Kelly later clarified that wouldn’t apply to land purchases. Vicky made the recommendation that the board insert the word “not” before the suggested recommendation language in the memorandum and insert “please see the attached memo”. The motion was rescinded and restated: Trudy clarified that Mark will attach the previously prepared LCSB memo to the Council Agenda Item Summary. Trudy made a motion continue with the LCSB decision to not sell the Running Deer Land. Joe Piesman seconded the motion. Trudy made a motion that City Council not approve the sale of approximately 11.85 acres of land originally purchased for Running Deer Natural Area, please see the attached memorandum. Joe Piesman seconded the motion. The motion was unanimously approved. ATTACHMENT 4 MEMORANDUM DATE: August 7, 2017 TO: Mayor & City Council Members FROM: Ed Reifsnyder, Chair, Land Conservation and Stewardship Board RE: Sale of portion of Running Deer Natural Area We understand that the proposed sale of a portion of Running Deer Natural Area to Hageman Earth Cycle is coming up for consideration by City Council. The Land Conservation and Stewardship Board, seeing the Council’s scheduled consideration, again discussed the proposed sale at its meeting on July 12, 2017. The Board has affirmed its opposition to the sale, as expressed in our memo of November 1, 2016, a copy of which is attached for your convenience. Thank you. ATTACHMENT 5 Environmental Services 215 N. Mason PO Box 580 Fort Collins, CO 80522 970.221-6600 970.224-6177 - fax fcgov.com MEMORANDUM NATURAL RESOURCES ADVISORY BOARD DATE: December 21, 2016 TO: Mayor and City Council Members FROM: John Bartholow, on behalf of the Natural Resources Advisory Board (NRAB) SUBJECT: Proposed sale of 11.85 acres of Running Deer Natural Area At our December meeting, the NRAB considered the sale of a small portion of Running Deer to Hageman Earth Cycle (HEC). We had available to us a variety of material from the Natural Areas (NA) staff, from the Land Conservation and Stewardship Board (LCSB), and our own personal experiences with Running Deer and HEC. We also were aware that the NRAB previously recommended terminating the HEC lease and moving to reclaim this land in 2001. On a vote of seven to one, our recommendation to Council is to not sell the land to HEC. I think it is fair to say that the vote was difficult. Both NA staff and the LCSB have made excellent points that, in a way, have served to sharpen the major points of disagreement on this matter. Our Board’s discussion was wide-ranging, covering such topics as the potential precedent of selling a portion of a natural area to a private business, the future of recycling yard and other organic waste in our ever-changing ‘wasteshed’ environment, the potential to restore the area if retained, the convenience of the site for drop-off, and a variety of alternatives including lease terms and resale considerations. Though many board members expressed support for a long- term lease, the motion was silent regarding the immediate fate of any lease. I also wish to make it clear that the NRAB very much values the services currently performed by HEC and we hope that both they and the City find ways to continue to mutually benefit one another. Regardless of Council’s decision on this specific matter, we believe it is imperative that you ensure that appropriate open space and natural areas policy documents clearly state that the default answer is “No” to any requests for sale of those lands. Rarely, there may be a reason to sell or trade some lands acquired under the program, but only if unambiguously warranted to achieve the program’s goals and operational objectives, better protect the fringes of those lands, or enhance the overall value of this stellar program that our citizens have overwhelmingly supported in multiple elections. We hope we have added value to this interesting discussion. ATTACHMENT 6 2 Respectfully Submitted, John Bartholow Chair, Natural Resources Advisory Board cc: Darin Atteberry Katy Bigner John Stokes 0 50 100 200 400 feet 50’ STREAM BUFFER + 100’ WETLAND BUFFER N. PROSPECT RD. POTENTIAL PROSPECT RD. WIDENING ROW: WIDTH TBD BY CITY ENGINEERING LEGEND HAGEMAN PARCEL WETLANDS + WATER BODIES WETLAND | STREAM | DITCH BUFFERS: 50’-100’ EXISTING TOP OF BERM AREAS TO REMAIN IN NATURAL AREAS POSSESSION 2.73 acres have been extracted from the parcel in question and will remain in the possession of the Natural Areas Department. The areas are comprised of a combination of buffers of various types that are annotated on the map. RUNNING DEER NATURAL AREA APPROXIMATE DIMENSIONS+ AREA OF POTENTIAL REDEVELOPMENT: HAGEMAN OWNED All setbacks, buffers and building envelopes to be set during the development review process. Potential improvements may include the relocation of the main office, the relocation of the scale, and the reconfiguration of site circulation. Future City projects (such as the widening of Prospect Rd.) may impact site development. AREA TO BE SOLD TO HAGEMAN 11.85 acres available to be purchased by Hageman to support materials processing. To facilitate future management, selected buffer zones have been extracted from the parcel and will remain in Natural Areas possession. + Diagram only: not to scale. ++ Survey required. 299’ 456’ 452’ 253’ 115’ 100’ 65’ 400’ fence start switch to carsonite fence end 452’ 2.30 ACRES .43 ACRES 11.85 ACRES 14.58 TOTAL ACRES 393’ 15’ 50’ CONVEYANCE BUFFER Proposed property line to be surveyed; Hageman to relocate and reconstruct berms off NAD property prior to closing. 0 50 100 200 400 feet 50’ STREAM BUFFER + 100’ WETLAND BUFFER N. PROSPECT RD. POTENTIAL PROSPECT RD. WIDENING ROW: WIDTH TBD BY CITY ENGINEERING LEGEND HAGEMAN PARCEL WETLANDS + WATER BODIES WETLAND | STREAM | DITCH BUFFERS: 50’-100’ EXISTING TOP OF BERM AREAS TO REMAIN IN NATURAL AREAS POSSESSION 2.73 acres have been extracted from the parcel in question and will remain in the possession of the Natural Areas Department. The areas are comprised of a combination of buffers of various types that are annotated on the map. RUNNING DEER NATURAL AREA APPROXIMATE DIMENSIONS+ AREA OF POTENTIAL REDEVELOPMENT: HAGEMAN OWNED All setbacks, buffers and building envelopes to be set during the development review process. Potential improvements may include the relocation of the main office, the relocation of the scale, and the reconfiguration of site circulation. Future City projects (such as the widening of Prospect Rd.) may impact site development. AREA TO BE SOLD TO HAGEMAN 11.85 acres available to be purchased by Hageman to support materials processing. To facilitate future management, selected buffer zones have been extracted from the parcel and will remain in Natural Areas possession. + Diagram only: not to scale. ++ Survey required. 299’ 456’ 452’ 253’ 115’ 100’ 65’ 400’ fence start switch to carsonite fence end 452’ 2.30 ACRES .43 ACRES 11.85 ACRES 14.58 TOTAL ACRES 393’ 15’ 50’ CONVEYANCE BUFFER No berm required. Existing fence to be removed by City in cooperation with Hageman. A double rail fence to be installed BOUNDARY DEMARCATION | PLANTED BERMS 4:1 SLOPE | 5’ TALL 4:1 SLOPE | 2’-6” TALL 20’ 10’ 2’-6” 5’ NATURAL AREAS | HAGEMAN PROPERTY LINE NATURAL AREAS | HAGEMAN PROPERTY LINE PERFORMANCE STANDARD FOR THE ESTABLISHMENT OF VEGETATION ON THE BERMS: The vegetation will be considered established when native vegetation represents > seventy percent (70%) of the vegetation on site, and no bare spots larger than one square meter are present. The adequacy of foliage and ground cover shall be determined by the Natural Areas Environmental Planner. For seeding, the attached custom seed mix is recommended by the Natural Areas Department and is to be hand-broadcast. The mix can be acquired from: Granite Seed | Contact: Miranda McCutchen E-mail: miranda@graniteseed.com Direct: 720-496-0592 Cell: 720-541-0860 For shrub establishment, Natural Areas recommends that seed from naturally occurring Rubber Rabbitbrush (Ericameria nauseosa) be collected from adjacent specimens at Running Deer Natural Area and hand-broadcast on berms. Natural Areas will assist with seed collection and broadcasting. To support vegetation establishment, the Natural Areas Department recommends seasonal mowing. Broadcast spraying is discouraged to protect water quality, and spot spraying is recommended only in limited applications where species can be appropriately identified as noxious weeds. Salt and pepper grass Deschampsia caespitosa 0.02 Inland Saltgrass Distichlis stricta 0.09 Canada Wild Rye Elymus canadensis 0.41 Bottlebrush squirreltail Elymus elymoides 0.25 Needleandthread Hesperostipa comata 0.41 Prairie Junegrass Koeleria macrantha 0.02 Green Needlegrass Nassella viridula 0.26 Switchgrass Panicum virgatum 0.18 Western Wheatgrass Pascopyrum smithii 0.41 Marsh bluegrass Poa palustris 0.05 Little Bluestem Schizachyrium scoparium 0.18 Yellow Indiangrass Sorghastrum nutans 0.35 Alkali Sacaton Sporobolus airoides 0.03 Sand Dropseed Sporobolus cryptandrus 0.01 Mix Total 8.35 Contractor is responsible for providing seed tags. This mix includes Pure Live Seed (PLS); contractor must order it that way. All materials furnished shall be free of Colorado State noxious weeds as defined in Article III, Section 21-40 of the Code of the City of Fort Collins. For questions or concerns, please call: Crystal Strouse Natural Areas Technician/Botanist Cell – 970-402-6385, Office – 970-416-2133 CUSTOM SEED MIX ATTACHMENT 8 ATTACHMENT 9 ATTACHMENT 10 1 Running Deer | Land Sale to Hageman John Stokes and Mark Sears, Natural Areas 8-15-17 Image: Google Earth ATTACHMENT 11 Context Map 2 Hageman Property Current Leased Area 0 50 100 200 yds. Exhibit Map 3 Hageman Property Land to be Purchased 0 100 200 400 feet Council Follow up from January 17 • Explore long-term lease • Sale of the land without restrictions • Develop land disposition Guidelines 4 Sale Versus Lease 5 • LCSB and NRAB oppose the sale – concern about setting precedent • LCSB recommends long term lease – up to 20 years Image: Google Earth Land Disposition Guidelines • Parcel no longer meets the intent for which it was purchased • Guidelines note that not every situation can be anticipated • Council can direct staff to sell any property • Sale proceeds may only be used for natural area purposes 6 Rationale for Sale 7 • HEC was leasing the land when NA’s acquired it 18 years ago • HEC needs certainty of ownership to make investments in business • HEC’s recycling of yard waste is an important service to the community Restrictions on Sale 8 • Only selling 11.85 acres – NA’s will retain the 2.73 acres of wetlands • Land can only be used for recycling organic waste • No permanent structures can be constructed • NA’s to retain buyback right at $255,000 plus escalator -1- ORDINANCE NO. 020, 2017 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE CONVEYANCE OF A PORTION OF CITY-OWNED PROPERTY AT RUNNING DEER NATURAL AREA TO BIG FOOT PROPERTIES, LLC WHEREAS, the City is the owner of a parcel of land located in northeast Fort Collins known as Running Deer Natural Area (the “City Property”); and WHEREAS, the City acquired the City Property from Flatiron Companies in 1998 for Natural Areas purposes; and WHEREAS, when the City acquired the City Property Flatiron Companies was leasing a 15 acre portion of the property (the “Lease Parcel”) to Hageman Earth Cycle, Inc. (“HEC”) for uses related to a yard waste recycling business operated by HEC on adjacent property; and WHEREAS, the Lease Parcel is more particularly described on Exhibit “A”, attached and incorporated herein by reference; and WHEREAS, in 2001 the City Council approved Ordinance No. 085, 2001, authorizing the lease of the Lease Parcel to HEC for up to five years; and WHEREAS, in 2006 the City Council approved Resolution 2006-048 extending the lease for an additional two-year period; and WHEREAS, the purpose of the initial lease and the extension was to allow HEC to find and move its operations to a new location; and WHEREAS, in 2008 HEC requested an additional ten-year extension on its lease, which the City Council approved by Ordinance No. 048, 2008, directing the City Manager to report annually on HEC’s compliance with regulatory requirements and efforts to relocate its business; and WHEREAS, HEC has not relocated; and rather than continuing to lease the Lease Parcel to HEC City staff is recommending that a smaller portion of the Lease Parcel comprising approximately 11.85 acres (the “Sale Parcel”) be sold to Big Foot Properties, LLC (“Big Foot”), a limited liability company owned by Roger Hageman, the owner of HEC; and WHEREAS, City staff and Mr. Hageman have discussed the possibility of entering into another long-term lease, but Mr. Hageman does not feel that option would work for his business; and WHEREAS, the Sale Parcel would be replatted prior to conveyance and a more particular description would be used in the deed conveying the Sale Parcel; and WHEREAS, the purchase price of the Sale Parcel would be the appraised value of $255,000; and -2- WHEREAS, the proceeds from the sale would be used for other Natural Areas purposes; and WHEREAS, because the Sale Parcel is adjacent to a City natural area, it would be sold subject to a deed restriction that the property can only be used for recycling yard waste and other organic materials, and no permanent structures can be constructed on it; and WHEREAS, the City would, by separate agreement (the “Buyback Agreement”), also retain a right to buy back the Sale Parcel if the owner ever decides to stop using it for the permitted purposes; and WHEREAS, pursuant to the Buyback Agreement, if the City decided not to exercise its right to repurchase the Sale Parcel the City would release the deed restriction and the land could then be used in accordance with the City’s then-applicable planning and zoning regulations; and WHEREAS, City staff believes selling the Sale Parcel to Big Foot is in the best interests of the City because the City spent money purchasing the Sale Parcel for Natural Areas purposes, but the Sale Parcel has never been used for such purposes and is unlikely to be in the near future, while selling the Sale Parcel would allow Natural Areas to recoup the value of the land and spend those funds for other Natural Areas purposes; and WHEREAS, selling the Sale Parcel will not substantially impair the conservation, ecological and recreational attributes of the City Property as a whole; and WHEREAS, City staff believes that selling the Sale Parcel is consistent with the Natural Areas Land Disposition Guidelines (“Guidelines”), as the Sale Parcel no longer meets the intent for which it was purchased, and the Guidelines allow the City Council to direct staff to sell property for any purpose it deems appropriate; and WHEREAS, Section 23-111(a) of the City Code authorizes the City Council to sell, convey, or otherwise dispose of any and all interests in real property owned in the name of 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. 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 Sale Parcel to Big Foot as provided herein is in the best interests of the City. Section 3. That the Mayor is hereby authorized to execute such documents as are necessary to convey the Sale Parcel on terms and conditions consistent with this Ordinance, including but not limited to, the Buyback Agreement, together with such additional terms and conditions as the City Manager, in consultation with the City Attorney, determines are necessary -3- or appropriate to protect the interests of the City, including, but not limited to, any necessary changes to the legal description of the Sale Parcel, as long as such changes do not materially increase the size or change the character of the property interest to be conveyed. Section 4. That the City Manager is hereby authorized to execute, if necessary in the future, a release of the deed restriction on the Sale Parcel if the City’s right to repurchase the Sale Parcel is triggered and the City decides not to exercise such right, in accordance with the terms of the Buyback Agreement. Introduced, considered favorably on first reading, and ordered published this 15th day of August, A.D. 2017, and to be presented for final passage on the 5th day of September, A.D. 2017. __________________________________ Mayor ATTEST: _______________________________ Interim City Clerk Passed and adopted on final reading on the 5th day of September, A.D. 2017. __________________________________ Mayor ATTEST: _______________________________ Interim City Clerk EXHIBIT A along the NAD | Hageman boundary by NAD. A single block wall (2.5' tall) to be installed with a 4:1 sloped berm; results in a 10' wide planting strip from the top of berm to the NAD property boundary (toe of berm). Existing fence to be removed by City in cooperation with Hageman. Double rail fencing to be installed along the property line (at the toe of the slope) by NAD. No berm modification required+. Existing fence to be removed by City in cooperation with Hageman. A double rail fence to be installed along the NAD | Hageman boundary by NAD. Berm to remain where it is. NAD to put in carsonite markers ~ every 40 feet and at all corners. Berm to remain where it is; property line is not shared with NAD. A double block wall (5' tall) to be installed with a 4:1 sloped berm; results in a 20' wide planting strip from the top of berm to the NAD property boundary (toe of berm). Existing fence to be removed by City in cooperation with Hageman. A double rail fence to be installed along the NAD | Hageman boundary by NAD. EXHIBIT : WORK TO BE COMPLETED AFTER CLOSING NAD to put in carsonite markers ~ every 40 feet and at all corners. Berm to remain where it is. NAD to put in carsonite markers ~ every 40 feet and at all corners. Berm to remain where it is; property line is not shared with NAD. +If the survey reveals encroachment of existing berms onto NAD property, berms will need to be removed from NAD property and reconstructed on Hageman property prior to closing. EXHIBIT : WORK TO BE COMPLETED PRIOR TO CLOSING Existing block wall, berm and stock piled materials will need to be removed from City property prior to closing. ATTACHMENT 7