HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 04/17/2018 - FIRST READING OF ORDINANCE NO. 055, 2018, AUTHORIZAgenda Item 9
Item # 9 Page 1
AGENDA ITEM SUMMARY April 17, 2018
City Council
STAFF
Sue Beck-Ferkiss, Social Sustainability Specialist
Ingrid Decker, Legal
SUBJECT
First Reading of Ordinance No. 055, 2018, Authorizing the Release of a Restrictive Convenant on Property at
the Colony at Rigden Farm.
EXECUTIVE SUMMARY
The purpose of this item is to authorize the release of a restrictive covenant for affordable home ownership on
a property's title because the property developed into market rate rental housing. The project contemplated by
the covenant was not built and no affordable housing incentives were provided to the developer.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
BACKGROUND / DISCUSSION
In 2006, the Colony at Rigden Farm development plan was approved. The plan included two buildings and a
total of 48 dwelling units. As is customary, the approved plans did not specify whether the buildings would be a
for-rent multi-family use or an owner-occupied multi-family use. A map of the location of this development is
attached. (Attachment 1)
In 2006 the City also entered in to an “Agreement of Restrictive Covenants Affecting Real Property” with the
then owner of the project to allow the option of affordable housing incentives in exchange for 5 units of
affordable home ownership units. (Attachment 2) The term of the Agreement was to begin when the City
issued certificates of occupancy for the 5 affordable units.
In 2007, a building permit was issued and the first building was completed with the owner electing to rent the
multi-family building. No home ownership units were delivered and no incentives were provided.
The parcel was sold in 2013, and a second multi-family building was then constructed. With the construction of
the second building, the new owner also elected to keep the buildings as for-rent multi-family, with no home
ownership product proposed and no affordable housing incentives requested or received.
The development of the project is now complete and the owners elected to keep all 48 dwellings as for-rent
units. The owners chose not to use the fee reductions or any affordable housing incentives offered in the
agreement. There is no longer a need for the covenant, which was arguably never triggered but still affects the
title to the property.
The development is to be sold in 2018. The new buyer wants title cleared and has requested that the seller
work to have the covenant be removed. The seller has made this request of the City. (Attachment 3)
Agenda Item 9
Item # 9 Page 2
Staff agrees that the restrictive covenant should be removed from the property’s title. Because ownership
product was not developed, there was no trigger for the restrictive covenant. The City will not lose restricted
units because none were produced as a result of this agreement. Removing this land use restriction from the
chain of title is a cleanup matter. Specifically, staff is asking for Council permission to have the City Manager
sign a Release of Covenant which will be filed with the County to clear the title.
CITY FINANCIAL IMPACTS
This action will not impact the finances of the City.
BOARD / COMMISSION RECOMMENDATION
At its February 1, 2018 meeting, the Affordable Housing Board voted unanimously to recommend release of
the restrictive covenant. (Attachment 4)
ATTACHMENTS
1. Vicinity map (PDF)
2. Restrictive Covenant Agreement (PDF)
3. Request to Remove Restrictive Covenant (PDF)
4. Affordable Housing Board minutes, February 1, 2018 (PDF)
Liberty Common High School
Foothills Channel
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Illinois Dr
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Kansas Dr
Custer Dr
Rigden Pkwy
Iowa Dr
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Colony at Rigden Farm
Vicinity Map
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Site
ATTACHMENT 1
ATTACHMENT 2
ATTACHMENT 3
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o Jeff: What was the outcome of that?
o Sue: I think people are open to it, but it’s continuing work. Deciding should it
be Land Bank specific, or more general for affordable housing?
o Jeff: That discussion would be brought forward primarily in City Plan?
o Sue: It could be. Could also be brought forward by the Internal Housing Task
Force in June. It would be good to have it at least in a whereas clause. The
work session we originally had, Council talked a lot about higher density. It
becomes a neighborhood compatibility issue.
•
2. Lift Restrictive Covenant on Timberline apartments at Rigden Farm: Sue Beck-
Ferkiss—Social Sustainability
Agreement of restrictive covenant filed with county assessor’s office for Rigden Farm
subdivision. In 2006, Colony in Ridgen Farm development plan approved for a total of 48
dwelling units, did not specify rental or homeownership. Someone from Advanced Planning
negotiated restrictive covenant so 5 of 48 units would be affordable for 20 years and this
restrictive covenant was filed in anticipation of that. Project changed; two separate
developments built in 2007 and 2013, all rental and no affordable. It’s being sold and owners
want to clear title to say the original development never happened. Restrictive covenant was
not triggered because conditions had changed. They want to release the burden on the title.
No inventory is lost because it never happened, this is a clean-up matter. Sue will take to
Council to ask to have it removed.
•
AGENDA ITEM 2: Board Business
A. Council Comments—not discussed
B. Review 2017 Work Plan—not discussed
C. Liaison Reports—not discussed
AGENDA ITEM 3: Fee Work Group Discussion—Diane (no meeting this month)
Jen motioned that the Affordable Housing Board recommends supporting staff
recommendations to Land Bank changes to City Council. Curt seconded. Passed
unanimously, 5-0-0.
Eloise motioned to approve the release of the restrictive covenant on Timberline
apartments at Rigden Farm. Jen seconded. Passed unanimously, 5-0-0.
Affordable Housing Board
February 1, 2018 ATTACHMENT 4
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ORDINANCE NO. 055, 2018,
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE RELEASE OF A RESTRICTIVE COVENANT
ON PROPERTY AT THE COLONY AT RIGDEN FARM
WHEREAS, on October 31, 2006, the City and Timberline at Rigden Farm, LLC
(“Developer”) entered into an Agreement of Restrictive Covenants Affecting Real Property
(“Covenant”) related to the Developer’s project known as the Colony at Rigden Farm, proposed
to be developed on a portion of Tract C, Rigden Farm Filing One (the “Property”); and
WHEREAS, the Covenant authorized the Developer to receive certain benefits from the
City, including priority processing, development impact fee payment delay, and other incentives
in exchange for including in the Project five home-ownership units that would meet the
definition of affordable housing under the City’s Land Use Code; and
WHEREAS, by its terms, the Covenant would go into effect when the City issued the
certificate of occupancy for the five affordable units and would last for a period of twenty years;
and
WHEREAS, the Covenant was recorded in the real property records of the Larimer
County Clerk and Recorder and is binding on successors in interest to the Property; and
WHEREAS, since 2007 two multi-family buildings have been built on the Property, but
all the units in both buildings are rentals – no ownership housing product was developed, and
neither the Developer nor its successors requested or received any of the incentives permitted
under the Covenant; and
WHEREAS, the current owner of the Property has requested that the City release the
Covenant because the owner intends to sell the Property, and the prospective buyer wants the
covenant removed before it will purchase the Property; and
WHEREAS, City staff recommends approving the release of the Covenant because it
serves no purpose to the City – it was never triggered, as no ownership product was developed,
and no incentives were provided by the City; and
WHEREAS, the Property is now fully developed and the Covenant only clouds the title
to the Property making it harder to sell; and
WHEREAS, the City’s right under the Covenant to restrict the use of the Property
constitutes an interest in real property owned by the City that the City would be giving up by
releasing the Covenant; and
WHEREAS, Section 23-111 of the City Code states that the City Council is authorized to
sell, convey or otherwise dispose of any interest in real property owned in the name of the City,
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provided that the City Council first finds, by ordinance, that such sale or other disposition is in
the best interests of the City; and
WHEREAS, at its regular meeting on February 1, 2018, the Affordable Housing Board
reviewed the request and voted to recommend releasing the Covenant.
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
finding contained in the recitals set forth above.
Section 2. That the City Council hereby finds that releasing the Covenant on the
Property on the terms and conditions described herein is in the best interests of the City.
Section 3. That the City Manager is hereby authorized to execute such documents as
are necessary to release the Covenant, along with such other 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 or effectuate the purposes of this Ordinance.
Introduced, considered favorably on first reading, and ordered published this 17th day of
April, A.D. 2018, and to be presented for final passage on the 1st day of May, A.D. 2018.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
Passed and adopted on final reading on the 1st day of May, A.D. 2018.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk