The URL can be used to link to this page

Home My WebLink AboutCOUNCIL - AGENDA ITEM - 08/20/2019 - FIRST READING OF ORDINANCE NO. 106, 2019, AUTHORIZAgenda Item 13 Item # 13 Page 1 AGENDA ITEM SUMMARY August 20, 2019 City Council STAFF Tawnya Ernst, Real Estate Specialist III Carol Webb, Deputy Director, Utilities Judy Schmidt, Legal SUBJECT First Reading of Ordinance No. 106, 2019, Authorizing the Termination of the Declaration of Covenants, Conditions, Restrictions and Easements for Inverness Innovation Park. EXECUTIVE SUMMARY The purpose of this item is to authorize the termination of a restrictive covenant that is obsolete and no longer beneficial to property on East Vine Drive. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION In 2009, Urban Development Partners, LLC and The Jensen Investment Group, LLC partnered to create an office/retail/industrial park development on East Vine Drive, the Inverness Innovation Park. To that end, the parties entered into Declaration of Covenants, Conditions, Restrictions and Easements for Inverness Innovation Park (Covenants) to define how the property would be used, developed, and managed. The legal description for the Covenants inadvertently included property that was not owned by Urban Development Partners, LLC and The Jensen Investment Group, LLC, 213 East Vine Drive, formerly owned by Lori Fleming and sold to the City in 2011 as part of Stormwater’s willing buyer/willing seller program. 213 East Vine is now part of the Whitewater Park. At least one City-owned property on the south side of Vine was inadvertently included in the description. (Attachment 1) In addition, one of the Inverness Innovation Park parcels, Tract A, has since been conveyed to the City. Portions of the property subject to the Covenants have also been transferred to RMI2 Properties LLC and is now the site of Innosphere. The successors to the Covenants, RMI2 Properties, LLC and Vine Drive Properties, LLC and the City of Fort Collins, want to terminate the Covenants for the following reasons: 1. The original Covenants inadvertently covered property not owned by Urban Development Partners, LLC or The Jensen Investment Group, LLC. 2. The original Covenants contemplated a comprehensive development and operational plan that has since been rendered obsolete by subsequent development that is not dependent upon or intended to be used in accordance with the Covenants; 3. The Covenants include limitations on use, common maintenance, and shared parking and other facilities that no longer provide a benefit to the encumbered properties and have been rendered obsolete by changed conditions; 4. The parties to the Covenants no longer require or wish to control future development as contemplated therein and wish to remove the reciprocal obligations imposed by the Covenants; Agenda Item 13 Item # 13 Page 2 5. Termination of the Covenants fulfills a requirement of RMI2 Properties related to the RMI and City water quality lab agreement; and 6. No utility easements are dependent on the Covenants. Staff agrees that the restrictive covenant should be terminated. Specifically, staff is asking for Council permission to have the City Manager sign a termination of covenants. CITY FINANCIAL IMPACTS This action will not impact the finances of the City. The covenants are mutual and since both parties are giving up their rights under the covenants, each party also benefits. ATTACHMENTS 1. Location map (PDF) Extent of Inverness Innovation Park Covenants Inverness Innovation Park Covenants Map Tract A conveyed to the City in 2018 for Whitewater Park/stormwater Attachment 1 -1- ORDINANCE NO. 106, 2019 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING TERMINATION OF THE DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR INVERNESS INNOVATION PARK WHEREAS, in 2009, Urban Development Partners, LLC and the Jensen Investment Group, LLC partnered to create an office/retail/industrial park development on East Vine Drive (the “Inverness Innovation Park”); and WHEREAS, the parties entered into a Declaration of Covenants, Conditions, Restrictions and Easements for Inverness Innovation Park, dated December 23, 2009 (the Covenants”) to define how the property was to be developed, used and managed by imposing restrictions on use and development, as well as common management and use of certain areas for the mutual benefit of the owners; and WHEREAS, Tract A and other portions of the Inverness Innovation Park have since been conveyed to the City and other portions of the property encumbered by the Covenants have been transferred to and developed by RMI2 Properties LLC (“RMI2”) and is now the site of the Innosphere; and WHEREAS, the successors to the Covenants (RMI1 Properties, LLC, Vine Drive Properties, LLC and the City) wish to terminate because they contemplated a comprehensive development and operational plan that has since been rendered obsolete by changed conditions, including subsequent development that is not dependent upon or intended to be used in accordance with the Covenants, and the Covenants no longer provide a benefit to the encumbered properties; and WHEREAS, the City’s agreement with RMI2 for the purchase of two condo units in a new building to be constructed to house water lab facilities calls for termination of the Covenants; and WHEREAS, City Council has determined that the restrictive Covenants should be terminated so that they no longer encumber City property. 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 in consideration of the mutual benefits accruing to the owners of the properties subject to the Covenants, including the City, the City Council hereby authorizes the City Manager to execute a Termination of Covenants in the general form attached hereto as Exhibit A. -2- Introduced, considered favorably on first reading, and ordered published this 20th day of August, A.D. 2019, and to be presented for final passage on the 3rd day of September, A.D. 2019. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 3rd day of September, A.D. 2019. __________________________________ Mayor ATTEST: _______________________________ City Clerk TERMINATION OF DECLARATION OF COVENANTS, CONDffiONS, RESI'RICfiONS AND EASEMENTS FOR INVERNESS JNNOVATION PARK THIS TERMINATION OF DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR INVERNESS INNOVATION PARK ("Agreement"), is dated as of the 0f,tM day of 4~ , 2019 (the "Effective Date"), by RMI2 Properties, LLC, a Colorado limited tab1hty company ("RMI2"), Vine Drive Properties, LLC, a Colorado limited liability company ("Vine Drive"), and the City of Fort Collins, a municipal corporation (the "City"). BACKGROUND OF AGREEMENT The following Background Statements are provided to aid in the understanding and interpretation of this Agreement: A. The Declaration of Covenants, Conditions, Restrictions and Easements for Inverness Innovation Park were recorded December 29, 2009, at Reception No. 20090089470 in the records of the office of the Clerk and Recorder of Larimer County, Colorado (the "Declaration"). B. Pursuant to the Declaration, the Owners of all of the Lots within the Property may terminate the Declaration by executing a termination of declaration and recording the same in the records ofthe Clerk and Record of Larimer County, Colorado. C. RMI2, Vine Drive, and the City are the current owners (collectively referred to herein as the "Owners") of all ofthe Lots within the Property. D. The Owners desire to terminate the Declaration. E. Capitalized terms not otherwise defined herein shall have the meanings given to them in the Declaration. NOW THEREFORE, the parties hereto agree as follows: 1. Termination of Declaration. By their signatures hereon,_ the Owners hereby agree and declare that the Declaration is hereby terminated as of the Effective Date. From and after the Effective Date, the Declaration shall have no further force or effect and shall no longer constitute an encumbrance upon or against any of the Owners' respective properties. 2. Invalidity. If any provision or term of this Agreement is invalidated, such invalidity shall not affect the validity of the remainder of this Agreement. 3. Counterparts. This Agreement may be executed simultaneously in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Page 1 of4 EXHIBIT A IN WITNESS WHEREOF, the Owners have caused this Termination of Declaration of Covenants, Conditions, Restrictions and Easements for Inverness Innovation Park to be executed as of the date shown by their respective signatures. RMI2 Properties, LLC a Colorado limited liability company By:~ A-~ Date: _7~) 9--~-} -' /'--<--1 '- __ Michael A. Freeman, Manager STATEOFCOLORADO ) )ss. COUNTY OF LARIMER ) The foregoing instrument was acknowledged before me this _.f:: day of .:fo \ ~ , 2019, by Michael A. Freeman, Manager of RMI2 Properties, LLC, a Colorado limit habiltty company. Witness my hand and official seal. My commission expires: tv\Mh dd_I\A , ;l.t>:}.~ Nm~m~~~~------------~ AZJZASYED NOTARY PUBUC STATE OF COLORADO NOTARY ID 20194011387 MY COMMISSION EXPIRES MARCH 22,1023 Page 2 of4 ATTEST: City Clerk (Print Name) APPROVED AS TO FORM: Judy Schmidt Sr. Assistant City Attorney STATE OF COLORADO ) )ss. COUNTY OF .LARJMER ) THE CITY OF FORT COLLINS, COLORADO, a Municipal corporation By: ________ ___ _ _ Name: Darin A. Atteberry Its: City Manager Date: ____________ _ The foregoing instrument was acknowledged before me this __ day of _ ____ _ 2019, by Darin A. Atteberry, City Manager of the City of Fort Collins, a municipal corporation. Witness my hand and official seal. My commission expires: _______ _ Notary Public Page 4 of4 Vine Drive Properties, LLC a Colorado limited liability company By: ________________________ ___ DanielL. Ochsner, Member STATE OF ___ _ COUNTY OF ___ ___ ) )ss. ) Date: --------------------- The foregoing instrument was acknowledged before me this __ day of----------" 2019, by DanielL. Ochsner, Member ofVine Drive Properties, LLC, a Colorado limited liability company. Witness my hand and official seal. My commission expires:---------- Notary Public Page 3 of4