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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 01/02/2018 - SECOND READING OF ORDINANCE NO. 176, 2018, DECLARIAgenda Item 5 Item # 5 Page 1 AGENDA ITEM SUMMARY January 2, 2018 City Council STAFF Caleb Feaver, Civil Engineer I Dean Klingner, Engineer & Capital Project Manager Kerri Allison, Real Estate Specialist II Chris Van Hall, Legal SUBJECT Second Reading of Ordinance No. 176, 2018, Declaring Certain City-Owned Property Consisting of a Portion of Tract A, Prospect Industrial Park Currently Owned by the City of Fort Collins Utilities’ Wastewater Utility Enterprise as Road Right-of-Way for the Proposed Sharp Point Drive Extension. EXECUTIVE SUMMARY This Ordinance, unanimously adopted on First Reading on December 19, 2017, declares approximately 1.4 acres of Tract A owned by the City Utilities’ Wastewater Utility Enterprise as right-of-way for the construction of Sharp Point Drive between Nancy Gray Avenue and Midpoint Drive. Tract A is a 1.9-acre parcel which was originally platted as a public access and loading easement in the 1970s as part of the Prospect Industrial Park. The Sharp Point Drive connection was shown on the City’s Master Street Plan in 1998. The platted easement merged into fee property upon acquisition by the Wastewater Utility Enterprise in 2002. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. First Reading Agenda Item Summary, December 19, 2017 (w/o attachments) (PDF) 2. Ordinance No. 176, 2017 (PDF) Agenda Item 11 Item # 11 Page 1 AGENDA ITEM SUMMARY December 19, 2017 City Council STAFF Caleb Feaver, Civil Engineer I Dean Klingner, Engineer & Capital Project Manager Kerri Allison, Real Estate Specialist II Chris Van Hall, Legal SUBJECT First Reading of Ordinance No. 176, 2018, Declaring Certain City-Owned Property Consisting of a Portion of Tract A, Prospect Industrial Park Currently Owned by the City of Fort Collins Utilities’ Wastewater Utility Enterprise as Road Right-of-Way for the Proposed Sharp Point Drive Extension. EXECUTIVE SUMMARY The purpose of this item is to declare approximately 1.4 acres of Tract A owned by the City Utilities’ Wastewater Utility Enterprise as right-of-way for the construction of Sharp Point Drive between Nancy Gray Avenue and Midpoint Drive. Tract A is a 1.9-acre parcel which was originally platted as a public access and loading easement in the 1970s as part of the Prospect Industrial Park. The Sharp Point Drive connection was shown on the City’s Master Street Plan in 1998. The platted easement merged into fee property upon acquisition by the Wastewater Utility Enterprise in 2002. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION The connection between Sharp Point/Midpoint and Nancy Gray has been on the City’s Master Street Plan since 1998. Recent multi-use development in the area has made the connection a high priority for the City. The City Wastewater Utility Enterprise purchased property in this area in 2002. Approximately 1.4 acres of the 1.9-acre Tract A will need to be converted to right-of-way to facilitate the construction of Sharp Point Drive. The remainder of Tract A (approximately 0.5 acres) will remain fee ownership for the benefit of the City Wastewater Utility Enterprise. Stor-More Mini Storage, west of the proposed Sharp Point Drive, was developed in 2006. Public infrastructure improvements were made in accordance with the Development Agreement and included significant work within Tract A. The development installed utilities, curb, gutter, landscaping, and sidewalk for the proposed Sharp Point Drive adjacent to their property. Right-of-way was not dedicated with the Mini Storage development since Tract A had previously been platted as a public access casement. Additional funds were escrowed for future roadway improvements. Long-range City planning efforts have identified the need and locations for a collector street network in this area. Sharp Point Drive, between Nancy Gray Avenue and Midpoint Drive will consist of two travel lanes, bike lanes, on-street parking, and sidewalks matching what has already been constructed in the vicinity. ATTACHMENT 1 Agenda Item 11 Item # 11 Page 2 The City will construct Sharp Point Drive and a new crossing of the Great Western Railroad through Engineering Capital Projects. A majority of the project funding is coming from Transportation Capital Expansion Fees collected from adjacent developments. Project Goals:  Multi-Modal Connectivity - Provides an at-grade crossing of the Great Western Railroad with a minor collector street for vehicles, bicycles, and pedestrians  Trail Network Access - Provides a safe and direct route to the Poudre River Trail for residents and businesses south and west of the Great Western Railroad  Emergency Response - Allows for alternate routes for the Fort Collins Police Department, Larimer County Sheriff’s Office, and Poudre Fire Authority  Traffic Congestion Relief - Completes the collector street network in this area and provides access alternatives to the arterial street system of Prospect Road, Timberline Road, and Drake Road CITY FINANCIAL IMPACTS City staff has been working on the best approach to ensure that the transaction is consistent with City Charter requirements to protect the interests of the ratepayers by compensating the Wastewater Utility Enterprise for the transfer of Tract A from a Utility purpose to a General Fund purpose. Given the existing roadway improvements and underground utilities within Tract A, the long history of intended use of Tract A, and the fact that the remainder and adjacent Utilities properties may be developed at some point, staff recommends the following course of action. 1.4 acres of Tract A will be converted to right-of-way. In exchange, the Engineering Department will:  Work with Utilities staff to determine an appropriate location for a curb cut and drive approach to serve the Utilities parcel for potential future development.  Credit the Wastewater Utility Enterprise the value of repay and right-of-way dedication requirements upon development of the property. Repay requirements would be approximately $100,000 (in 2017 dollars). Staff analysis of the proposal concludes that the value of the future repay obligations represents fair compensation to the Wastewater Utility Enterprise for the value of the right-of-way conversion. BOARD / COMMISSION RECOMMENDATION At its December 7, 2017 meeting, the Water Board recommended approval of this approach. (Attachment 3) PUBLIC OUTREACH Staff presented the proposed project at a public open house in April 2016. Since that time staff has met with numerous business owners, stakeholders, and property owners to discuss the project. Staff will continue public outreach and engagement efforts with stakeholders in late 2017 and into 2018. A second open house event will be scheduled in early 2018. The project website will be updated with construction information after the Construction and Maintenance Agreement is finalized with Great Western Railroad. Project website is available at: http://www.fcgov.com/engineering/sharppoint.php Agenda Item 11 Item # 11 Page 3 ATTACHMENTS 1. Project Location Map (PDF) 2. Right-of-Way Conversion Map (PDF) 3. Water Board minutes, December 7, 2017 (draft) (PDF) -1- ORDINANCE NO. 176, 2017 OF THE COUNCIL OF THE CITY OF FORT COLLINS DECLARING CERTAIN CITY-OWNED PROPERTY CONSISTING OF A PORTION OF TRACT A, PROSPECT INDUSTRIAL PARK, CURRENTLY OWNED BY THE CITY OF FORT COLLINS FOR THE BENEFIT OF THE WASTEWATER UTILITY ENTERPRISE AS ROAD RIGHT-OF-WAY FOR THE PROPOSED SHARP POINT DRIVE EXTENSION WHEREAS, the City, for the benefit of the Wastewater Utility Enterprise, owns a certain property known as Tract A Prospect Industrial Park, a 1.9-acre parcel which was originally platted as a Public Access and Loading Easement in the 1970s; and WHEREAS, a connection between Sharp Point/Midpoint and Nancy Gray has been on the City’s Master Street Plan since 1998 and recent multi-use development in the area has made the connection a high priority for the City; and WHEREAS, City staff is requesting that the City Council declare approximately 1.4 acres of Tract A as a right-of-way to facilitate the construction of Sharp Point Drive, and the remainder of Tract A will remain owned by the City for the benefit of the Wastewater Utility Enterprise; and WHEREAS, Article XII, Section 6 of the City Charter requires that all revenues of the City’s utilities be expended only for utility purposes determined by the Council to be beneficial to the ratepayers; and WHEREAS, in exchange for converting 1.4 acres of Tract A to a General Fund purpose, the City’s Engineering Department will work with Utilities staff to determine an appropriate location for a curb cut and drive approach to serve the parcel for potential future development and credit the Wastewater Utility Enterprise the value of repay and right-of-way dedication requirements upon development of the property for approximately $100,000 in 2017 dollars; and WHEREAS, converting a piece of property owned by the City in fee simple to right-of- way constitutes a conveyance of an interest in the property, as doing so creates certain public rights in the property that would not otherwise exist on City-owned property; and WHEREAS, Section 23-111 of the City Code provides that the City Council is authorized 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 interest of the City and, for property that is part of the City’s water or utility systems, the City Council must also find that the disposition of the property will not materially impair the viability of the system as a whole, and will be for the benefit of the citizens of the City; and WHEREAS, the City Council determines that converting 1.4 acres of Tract A to right-of- way to facilitate the construction of Sharp Point Drive is in the best interest of the City and will benefit the citizens of the City because construction of the road is a high priority to address traffic needs in the surrounding area; and WHEREAS, the City Council determines that converting 1.4 acres of Tract A to right-of- -2- way will not impair the viability of the wastewater system as a whole, and is beneficial to the ratepayers of Wastewater Utility Enterprise because the Enterprise will be credited the value of repay and right-of-way dedication requirements. 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 declares that the real property described as Exhibit “A” shall constitute right-of-way for Sharp Point Drive and related improvements, including without limitation public utilities, pedestrian, transit and bicycle access and improvements, landscaping, and other such related purposes as may now or in the future be determined appropriate, and hereby finds that such declaration is in the best interest of the City. Section 3. That the City Clerk shall cause this Ordinance to be recorded in the real property records of the Larimer County Clerk and Recorder’s office once the Ordinance becomes effective in accordance with Article II Section 7 of the City Charter. Introduced, considered favorably on first reading, and ordered published this 19th day of December, A.D. 2017, and to be presented for final passage on the 2nd day of January, A.D. 2018. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 2nd day of January, A.D. 2018. __________________________________ Mayor ATTEST: _______________________________ City Clerk Exhibit "A" Page 1 of 2 Exhibit "A" Page 2 of 2