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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 03/31/2020 - FIRST READING OF ORDINANCE NO. 051, 2020, AUTHORIZAgenda Item 10 Item # 10 Page 1 AGENDA ITEM SUMMARY March 31, 2020 City Council STAFF Kerri Allison, Real Estate Specialist II Coy Althoff, Utilities Engineer Ryan Malarky, Legal SUBJECT First Reading of Ordinance No. 051, 2020, Authorizing the Sale of Real Property Located Adjacent to the Utilities Service Center at 700 Wood Street. EXECUTIVE SUMMARY The purpose of this item is to authorize the sale of City-owned real property located at approximately 525 North Whitcomb Street, adjacent to the City’s Utilities Services Center located at 700 Wood Street. The property is a small offsetting portion of the Utility Service Center development and consists of 1,680 square feet. The buyers are the owners of real property at 525 North Whitcomb Street. The sale price is $6,720 and the proceeds will be placed in the Light and Power Fund. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION In November 1998, the City purchased approximately 1.7 acres abutting the Utilities Service Center site from Burlington Northern & Santa Fe Railway Company to help facilitate the Utilities Service Center Master Development Plan. In 2007, the City conveyed a portion of this land to the former owners of the adjacent property located at 525 North Whitcomb to clean up an existing garage encroachment. In 2008, the City conveyed an additional 7-foot wide strip of City-owned property to the current owners of 525 North Whitcomb Street, Colleen J. Scholz and Peter M. Scholz. The purpose for that transaction was to clean up a fence encroachment. The home at 525 North Whitcomb Street was demolished and rebuilt in 2009. At some point later, the Scholzes constructed an outbuilding on the 1,680-square-foot portion of City-owned property. City staff has not identified a current or future use for the 1,680 square feet and believes the best solution is for the 1,680 square feet to become part of the 525 North Whitcomb Street property. Colleen and Peter Scholz have executed a Purchase and Sale Agreement with the City to purchase the 1,680 square feet to clean up this most recent encroachment that is contingent upon City Council approval of the sale. CITY FINANCIAL IMPACTS The proposed sale price is $6,720, which is fair market value due to the parcel’s size, location and lack of utilization by any party other than the Scholzes. The proceeds from the sale of this property will be placed in the Light and Power Fund. Agenda Item 10 Item # 10 Page 2 ATTACHMENTS 1. Location Map (PDF) CITY OF WAREHOUSE FORT COLLINS 518 N. LOOMIS CITY OF UTILITIES FORT COLLINS 525 N. WHITCOMB N WHITCOMB ST N LOOMIS AVE ELM ST SYCAMORE ST CITY CONVEYANCE LOCATION OF 525 MAP N. WHITCOMB Conveyed Area to be by conveyed Ordinance 135, 2007 ± Conveyed by Ordinance 044, 2008 Abandoned RR tracks ATTACHMENT 1 -1- ORDINANCE NO. 051, 2020 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE SALE OF REAL PROPERTY LOCATED ADJACENT TO THE UTILITIES SERVICE CENTER AT 700 WOOD STREET WHEREAS, in November 1998, the City purchased 1.7 acres of real property from the Burlington Northern & Santa Fe Railway Company, which land is adjacent to the City’s Utilities Service Center located at 700 Wood Street: and WHEREAS, the 1.7 acres was purchased to facilitate the Utilities Service Center Master Development Plan; and WHEREAS, the 1.7 acres is also adjacent to real property located at 525 N. Whitcomb Street; and WHEREAS, at some point after 2009, the current owners of 525 N. Whitcomb Street, Colleen and Peter Scholz, constructed an outbuilding on 1,680 square feet of the City-owned property (the “Property”); and WHEREAS, the City has no current or future identified use for the Property; and WHEREAS, because there is no foreseeable City use of the Property, staff is recommending the Property be sold to the Scholzes and the proceeds be placed in the Light and Power Fund; and WHEREAS, staff has identified the fair market value of the Property to be $6,270; and WHEREAS, Section 23-111 of the City Code authorizes the City Council to sell, convey or otherwise dispose of any interest 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, for real property that is part of the City’s utility systems, that the disposition will not materially impair the viability of that utility system as a whole and will be for the benefit of the citizens 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 sale of the Property to Colleen and Peter Scholz as provided herein is in the best interests of the City, will not impair the viability of the City’s utility systems, and will be for the benefit of the citizens of the City. -2- Section 3. That the Mayor is hereby authorized to execute a deed and such other documents as are necessary to convey the Property to the Scholzes on terms and conditions consistent with this Ordinance, together with such other additional terms and conditions as the City Manager, in consultation with the City Attorney, determines are necessary and appropriate to protect the interests of the City or effectuate the purposes of this Ordinance, including but not limited to any necessary changes to the legal description of the Property, as long as such changes do not materially increase the size of the parcel to be conveyed. Introduced, considered favorably on first reading, and ordered published this 31st day of March, A.D. 2020, and to be presented for final passage on the 7th day of April, A.D. 2020. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 7th day of April, A.D. 2020. __________________________________ Mayor ATTEST: _______________________________ City Clerk