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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 01/21/2020 - RESOLUTION 2020-009 AUTHORIZING THE MAYOR TO EXECUAgenda Item 15 Item # 15 Page 1 AGENDA ITEM SUMMARY January 21, 2020 City Council STAFF David Myers, Land Conservation Manager Tawnya Ernst, Real Estate Specialist III John Stokes, Natural Resources Director Ingrid Decker, Legal SUBJECT Resolution 2020-009 Authorizing the Mayor to Execute an Intergovernmental Agreement with Larimer County to Partner on the Purchase of an 800 Acre Inholding at Red Mountain Open Space. EXECUTIVE SUMMARY The purpose of this item is to consider a proposed intergovernmental agreement with Larimer County to partner on the conservation of an 800-acre property within Red Mountain Open Space. The County is the lead on the project and will own and manage the property. The City will receive and hold a conservation easement on the 800 acres as well an adjoining 1,480 acres. The conservation easement requires that the land never be subdivided or developed and that it be managed for its conservation values. STAFF RECOMMENDATION Staff recommends adoption of the Resolution. BACKGROUND / DISCUSSION The County purchased the 800 acres on August 1, 2018. Staff requested the adoption of this resolution on August 21, 2018. However, it was withdrawn due to questions from City Council regarding the Natural Areas Department (Natural Areas) procedures for evaluating potential partnerships. Natural Areas spent the next several months reviewing its internal procedures. Outreach was conducted with Boulder County, City of Boulder, Jefferson County, and Larimer County to review their partnership procedures. Staff presented the findings and discussed partnership criteria with City Council at a December 11, 2018, work session. During the work session Council asked staff to create partnership guidelines. A memorandum was sent to City Council on January 30, 2019, detailing the draft partnership guidelines. No changes were requested by City Council and the Land Acquisition Partnership Guidelines were administratively adopted on March 5, 2019. (Attachment 3) The City and Larimer County Open Lands have been collaborating since 2003 to conserve land in the Laramie Foothills to meet shared land conservation goals. In 2004 the City partnered with the County to purchase the 13,448-acre Red Mountain Open Space (RMOS) and in 2007 to purchase a 1,480-acre inholding in RMOS from a local family. The family also owned an adjoining 800-acre property that consists primarily of Table Mountain, a flat top mesa that is a beautiful and dominant part of the landscape as one enters Red Mountain Open Space or peers down into the “Big Hole” valley from Soapstone Prairie Natural Area. It is heavily used by elk as a refuge. The property has been a high priority for the County and City for many years as a critical part of the Laramie Foothills Mountains to Plains project area. Agenda Item 15 Item # 15 Page 2 The proposed transaction between the City and the County authorizes the City to pay 50% of the value of the property or $1,250,000. In return, the City would receive a conservation easement on the 800 acres. The City will also receive a conservation easement on the adjoining 1,480 acres. The conservation easement ensures that the property will never be subdivided or developed and that it is to be managed for its conservation values. This approach is a model that the City and County have used in the past on other collaborative projects, most recently the Horsetooth Foothills properties. If the IGA is approved the City will hold a conservation easement on all of RMOS. The project addresses key criteria noted in the Land Acquisition Partnership Guidelines: • The project aligns with the goals of the Council-adopted Natural Areas Master Plan for regional conservation and partnerships by conserving lands within the Laramie Foothills Mountains to Plains priority area. • Visitation is free of charge. The additional acres now part of RMOS and managed through the RMOS management plan that includes no charge for public visitation. • Larimer County and the City have a positive track record of partnerships. • The proposed partnership enhances conservation protection by finalizing an 800-acre acquisition and placing a conservation easement on the 800 acres and an adjoining 1,480 acres. • The project leverages the resources of both the County and the City in the Laramie Foothills and sets the stage for future collaborations. CITY FINANCIAL IMPACTS The total cost to the County to acquire the 800-acre inholding was $2,250,000, plus closing and due diligence costs; The City’s share will be $1,125,000, plus approximately half of the due diligence costs. BOARD / COMMISSION RECOMMENDATION At its July 11, 2018, meeting, the Land Conservation and Stewardship Board voted unanimously to recommend that City Council approve the IGA with Larimer County to partner on the purchase of the Inholding in Red Mountain Open Space. PUBLIC OUTREACH Natural Areas staff presented the proposed partnership to the Land Conservation and Stewardship Board in a public meeting on July 11, 2018. Larimer County Open Lands staff presented the proposed partnership to the County Open Lands Board in a public meeting on July 26, 2018. Larimer County staff presented the proposed partnership to the Board of County Commissioners on July 31, 2018. ATTACHMENTS 1. Red Mountain Inholdings Map (PDF) 2. Land Conservation and Stewardship Board minutes, July 11, 2018 (PDF) 3. Natural Areas Administrative Policy-Land Acquisition Partnership Guidelines (PDF) Red Mountain Soapstone Natural Area Open Space *All cross-hatched areas are encumbered by existing conservation easements 800+/- acre property (recent purchase) 1480+/- acre property (previously purchased by County) Red Mountain Open Space Inholdings Map ATTACHMENT 1 Land Conservation & Stewardship Board Regular Meeting - Excerpt July 11, 2018 07/11/2018 – MINUTES Page 1 ACTION ITEM John reported that Dan Gulley and Mark Sears have been working on the purchase of an 800-acre parcel inholding in Red Mountain Open Space. The property has been a priority for the County and City for many years as a critical part of the Larimer Foothills Mountain to Plains project. The owners recently agreed to sell the property to the County for $2,250,000.00. If City Council agrees with the proposed transaction, the City and the County would each pay 50% of the value of the property. The County will own the property and the City will retaining a conservation easement. John reported that City Council requires an IGA. NAD would like to go to City Council on August 21st to obtain approval. NAD will close on the property in early August and then a conservation easement will be completed. Discussion: Kelly asked how NAD determined the purchase price and if it was an appropriate fair market value. John explained NAD’s extensive acquisition experience allows for familiarity with market values. The value of this property is higher than it would normally be. Because it’s surrounded by open space, it has a higher value. The price agreement was agreed upon by both the County and the City. VICKY MCLANE MADE A MOTION THAT CITY COUNCIL APPROVE AN IGA WITH LARIMER COUNTY TO PARTNER ON THE PRUCHASE OF THE GALLEGOS INHOLDING IN RED MOUNTAIN OPEN SPACE. MARCIA PATTON-MALLORY SECONDED THE MOTION THE MOTION WAS APPROVED 9-0 ATTACHMENT 2 Natural Areas Department 1745 Hoffman Mill Road PO Box 580 Fort Collins, CO 80522 970.416.2815 970.416.2211 - fax fcgov.com/naturalareas Natural Areas – Administrative Policy Land Acquisition Partnership Guidelines Background As requested by City Council during the December 11, 2018 work session, staff developed criteria and associated guiding questions to address Council’s suggestions related to external land conservation partnerships. The criteria and guiding questions will be utilized well in advance of formalizing a partnership. If staff believes the partnership to be justified based upon the criteria and guiding questions, a memo detailing staff’s recommendation will be presented to Council prior to moving forward. Thus, if Council has any concerns they can be addressed well in advance of a potential transaction. Criteria • The acquisition must align with the land conservation priorities set forth by the Council Adopted - City of Fort Collins 2014 Natural Areas Master Plan. • Visitation must be free of charge if public access is allowed. o If access fees are proposed, a staff recommendation to move forward must be explained and justified in the report to council. • The partner/s must have a positive track record of partnerships with the City and/or other organizations. • The partnership must enhance the conservation protections of the project. • The land conservation project must leverage the parties’ resources in a manner that leads to additional land conservation by one, or both, parties. Guiding Questions • Does the land conservation project align with the land conservation priorities set forth by the Council Adopted - City of Fort Collins 2014 Natural Areas Master Plan? • Does the partner have a positive track record of partnership with the City and or other organizations? • Is the project of mutual interest due to previous investments by the partners or due to its location? • How will the land conservation project benefit citizens of Fort Collins? • How can/should the land conservation project be funded? o Are there grants available to help fund the project? o Do the partners have the financial ability to participate? • Will the financial partnership positively affect a grant application? o Which partner is best suited to apply for and manage the grant? • Would the land conservation project be possible without the partnership? o If so, does the partnership leverage resources for additional conservation or partnership opportunities? • If the property is purchased: o Which partner is best suited to manage the property? • If the land is conserved with a conservation easement? o Which partner is best suited to hold and monitor the conservation easement? This Policy was Administratively Adopted by: ___________________________________________ ____________________________ John Stokes, Natural Areas Department Director Date ATTACHMENT 3 -1- RESOLUTION 2020-009 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE MAYOR TO EXECUTE AN INTERGOVERNMENTAL AGREEMENT WITH LARIMER COUNTY TO PARTNER ON THE PURCHASE OF AN 800 ACRE INHOLDING AT RED MOUNTAIN OPEN SPACE WHEREAS, to meet shared land conservation goals, the City and Larimer County (“County”) have been working together since 2003 to conserve land in the Laramie Foothills – Mountains to Plains Conservation Area, including the Red Mountain Open Space (“Red Mountain”) directly west of the City’s Soapstone Prairie Natural Area; and WHEREAS, in 2018 the County acquired an inholding parcel in Red Mountain, approximately 800 acres in size (the “Ranch”); and WHEREAS, whereas, the City wishes to collaborate with the County on the costs and responsibilities of conserving the Ranch by splitting the acquisition costs with the County; and WHEREAS as part of this arrangement the County would convey to the City a conservation easement (the “Conservation Easement”) on the Ranch property and on another inholding parcel at Red Mountain that the County purchased in 2007 with the help of the City (together, the “Red Mountain Inholding”); and WHEREAS, the City already holds a conservation easement on the rest of Red Mountain; and WHEREAS, the City and County have negotiated a proposed intergovernmental agreement regarding the Red Mountain Inholding, a draft of which is attached hereto as Exhibit “A” and incorporated herein by reference (the “IGA”); and WHEREAS, under the terms of the IGA the City would pay the County $1,125,000, representing half the cost of acquiring the Ranch, plus a portion of the due diligence costs incurred by the County for the acquisition, and the County would convey the Conservation Easement to the City by a separate deed of conservation easement; and WHEREAS, the City’s portion of the funds has already been appropriated and is available for expenditure in the Natural Areas fund; and WHEREAS, under the IGA the County will also grant the City a right of first refusal if the County ever wishes to sell all or a portion of the Red Mountain Inholding, and the County will a right of first refusal if the City wishes to sell the Conservation Easement; and WHEREAS, if either party was to sell or transfer its interest to a third party, the City and County would split any proceeds from that conveyance in the same proportion as their contributions to this project; and -2- WHEREAS, at its regular meeting on July 11, 2018, the Land Conservation and Stewardship Board voted to recommend that the City Council approve the IGA; and WHEREAS, the proposed collaboration with the County, as documented in the IGA, meets the criteria of the Natural Areas Department’s Land Acquisition Partnership Guidelines; and WHEREAS, Article II, Section 16 of the City Charter empowers the City Council, by ordinance or resolution, to enter into contracts with governmental bodies to furnish governmental services and make charges for such services, or enter into cooperative or joint activities with other governmental bodies; and WHEREAS, Section 29-1-203 of the Colorado Revised Statutes provides that governments may cooperate or contract with one another to provide certain services or facilities when such cooperation or contracts are authorized by each party thereto with the approval of its legislative body or other authority having the power to so approve; and WHEREAS, the City Council has determined that entering into the IGA with the County and acquiring the Conservation Easement on the Red Mountain Inholding are in the best interests of the City. NOW, THEREFORE, BE IT RESOLVED 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 authorizes the Mayor to execute the IGA, pursuant to which the City will pay the County a portion of its costs for acquiring the Ranch and in exchange the County will convey the Conservation Easement and a right of first refusal over the Red Mountain Inholding to the City while retaining a right of first refusal in the Conservation Easement, in substantially the form attached hereto as Exhibit “A,” together with such modifications and additions as the City Manager, in consultation with the City Attorney, determines are necessary or appropriate to protect the interests of the City or further the purposes of this Resolution, as set forth above. Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 21st day of January, A.D. 2020. _________________________________ Mayor ATTEST: _____________________________ City Clerk EXHIBIT A 1 INTERGOVERNMENTAL AGREEMENT CONCERNING THE RED MOUNTAIN INHOLDING CONSERVATION PROJECT This Intergovernmental Agreement (Agreement) is made this ___day of _____________, 2020, by and between the CITY OF FORT COLLINS, COLORADO (the "City") and LARIMER COUNTY, COLORADO (the “County"). WHEREAS, part 2 of Article 1 of Title 29, C.R.S. authorizes governments to cooperate and contract with one another to provide any function, service or facility lawfully authorized to each, including the sharing of costs; and WHEREAS, the County has imposed a sales and use tax via the "Help Preserve Open Spaces Initiative" for the purchase and maintenance of open space, natural areas, wildlife habitat, parks and trails and a portion of the funds generated by said sales tax are distributed to municipalities located within Larimer County, including the City; and WHEREAS, the City has imposed a dedicated 0.25% sales and use tax known as "Open Space Yes!", portions of the revenues from which are intended and available for the purchase and maintenance of open space, natural areas, and trails; and WHEREAS, the parties recognize through the Larimer County Open Lands Master Plan and Fort Collins Natural Areas Master Plans that certain lands in the Laramie Foothills – Mountains to Plains Conservation Area (“Conservation Area”) are important to be conserved through various means such as fee acquisition, conservation easements, and regulatory measures; and WHEREAS, the parties have historically worked cooperatively to conserve the Conservation Area, provide limited recreation, and protect and promote the quality of life, wildlife, the natural environment and the character of the region; and WHEREAS, the Larimer County Natural Resources Department and the City of Fort Collins Natural Areas Department share common goals in conserving land in the Conservation Area, and by this IGA intend to form a partnership to carry out a land conservation project known as the “Red Mountain Inholding Conservation Project” to conserve in fee approximately 800 acres of land and in conservation easement approximately 2,280 acres of land; and WHEREAS, the County has acquired through purchase of fee interest, the real property referred to as the “Table Mountain Ranch Property”, described in Exhibit A, attached hereto and incorporated herein by reference; and WHEREAS, the County will convey a conservation easement (the “Conservation Easement”) to the City on the Table Mountain Ranch Property and on a 1,480-acre parcel referred to as “Previous Joint Purchase Property” which was acquired by a joint acquisition in 2007 and is described in Exhibit B, attached hereto and incorporated herein by reference, both of which shall be referred to together as the “Red Mountain Inholding,” and WHEREAS, the parties desire to cooperate and contract with one another concerning the sharing of costs and responsibilities for the conservation of the Red Mountain Inholding. EXHIBIT A 2 NOW, THEREFORE, in consideration of the mutual promises contained herein, the parties agree as follows: A. Subject Properties/Easements 1. The County has acquired the Table Mountain Ranch Property and will convey the Conservation Easement to the City on the Red Mountain Inholding, subject to prior approval by the Larimer County Board of County Commissioners in its discretion. 2. The City will prepare the Conservation Easement instrument covering the entire Red Mountain Inholding in collaboration with the County and will pay all transaction costs associated with the Conservation Easement. The City shall submit the Conservation Easement, upon completion of the transaction, to the Larimer County Clerk and Recorder for recording in the real property records of the County and shall provide a copy of the recorded Conservation Easement to the County upon completion of recording. 3. The cost for conserving the Red Mountain Inholding, including the purchase price for the Table Mountain Ranch Property, conveyance of the Conservation Easement, closing costs, title insurance, Phase I Environmental Assessment Reports, and Baseline Reports is estimated to be approximately $2,270,000 as shown in Exhibit C, attached hereto and incorporated herein by reference. 4. The County and City will share equally all costs that are incurred, with each party responsible for paying the estimated costs designated to each of them as shown on Exhibit C. If either the City or County determines it is unable to pay its share of any unanticipated costs, they agree to negotiate in good faith to reach a resolution such that the acquisition may be completed. Such resolution may include modifying the amount each party will pay for the unanticipated costs. 5. Following the closing of the fee and conservation easement acquisitions, the County will prepare a summary report similar to Exhibit C showing the exact costs paid by each party. It is not necessarily the parties’ intent that the costs paid by each party will be equivalent to the value of the property interest held by such party. B. Management of the Red Mountain Inholding Property 1. The County will manage the 800-acre Table Mountain Ranch Property as a part of its Red Mountain Open Space and in accordance with the Red Mountain Open Space Management Plan (which will be updated to reflect this acquisition) and subsequent updates. 2. Emergency Circumstances. In the event of emergency circumstances requiring immediate response prior to the adoption of updated Management Plans which will be used to guide the management of the Red Mountain Inholding, the County shall be entitled to use reasonable discretion in responding to such circumstances. If possible, the County shall consult with the City in advance of any action being taken. In the event advance consultation is not reasonably EXHIBIT A 3 possible, the County shall limit its actions to those necessary to address the existing emergency and shall make reasonable efforts to inform the City promptly of any such event and chosen course of action. C. Subsequent Sale and/or Transfer of Red Mountain Inholding or Conservation Easement Interests 1. If the County desires to sell all or any portion of its fee interest in the Red Mountain Inholding, or if the City desires to sell its conservation easement interest, the “Selling Party” shall provide written notice to the Non-selling Party of its intention to sell its fee or conservation easement interest (“Notice of Intent to Sell”). The Non-selling Party shall have a right of first refusal (“Option”) to purchase such interest (“Interest”) for its fair market value. The Non-selling Party shall have 30 days from the date of the Notice of Intent to Sell to notify the Selling Party if it is interested in purchasing the Interest. The parties shall then jointly select an appraiser to determine the fair market value of the Interest. The cost of such appraisal shall be split equally between the parties. The Non-Selling party shall notify the Selling Party within 30 days following the completion of the appraisal whether it intends to purchase the Interest. The parties shall then work in good faith to negotiate a purchase and sale agreement and any necessary documents for completion of the sale. The Option shall expire if the Non-selling party does not, within 30 days of the completion of the appraisal, notify the Selling Party that it intends to purchase the Interest. If the Non-selling Party timely notifies the Selling party of its intent to purchase, the Option shall nonetheless expire two years after the date of the Notice of Intent to Purchase if the parties have not closed on the conveyance of the Interest by that time. 2. If the Non-selling Party declines to purchase the Interest, either before or after having the Interest appraised, the Selling Party may then convey the Interest to a third-party as it chooses. Any sale of the County’s fee interest shall be subject to the terms of the Conservation Easement and any other existing encumbrances, restrictions or conditions applicable to the conveyed property. If the County desires to sell all or any portion of its fee interest in the Red Mountain Inholding, including easements or rights of way, and the City notifies the County of an adverse impact of the proposed sale on the remaining interests in the Red Mountain Inholding or the Conservation Easement, the parties agree to negotiate in good faith to resolve the issue prior to the sale. 3. If either party sells all or any portions of its respective ownership interest in the Red Mountain Inholding, it shall divide the net proceeds from such sale between the County and the City in the same percentage as their respective contributions to the initial purchase payments for acquiring the property interests sold as defined in Exhibit C. If all or any portion of the subject properties is taken by eminent domain, the net proceeds from such disposition shall be divided between the County and the City in the same percentage as their respective contributions to the initial purchase payments for acquiring the property interests taken as defined in Exhibit C. Proceeds from such conveyance shall be subject to the provisions of each party’s respective applicable policies, ordinances, resolutions and plans. 4. The parties understand and acknowledge that if the City assigns the Conservation Easement to a third party qualified organization as described in the Deed of Conservation Easement, the City may not receive any payment for such transfer, and neither the City nor the County would be entitled to recover any portion of its initial contribution to the value of the Conservation Easement. EXHIBIT A 4 D. General Provisions. 1. Each party agrees to execute all additional instruments and documents necessary to effectuate the transactions and purposes described herein, subject to any necessary approvals. 2. This Agreement shall be binding upon and inure to the benefit of the parties’ respective successors and permitted assigns. 3. Financial obligations of the parties payable after the current fiscal year are contingent upon the governing bodies of the parties, in their discretion, appropriating funds sufficient and intended for such purposes. 4. Each party is responsible for its own negligence and that of its officers, employees and volunteers. Nothing in this Agreement waives the immunities, limits of liability, or other terms and conditions of the Colorado Governmental Immunity Act as now in force or hereafter amended. 5. Any notices required or permitted to be given shall be in writing and personally delivered to the office of the parties hereof, or sent by first class mail, postage prepaid, or by overnight commercial courier, addressed as follows: John Stokes Daylan Figgs Natural Areas Director Natural Resources Director City of Fort Collins – Natural Areas Department Larimer County Natural Resources Department PO Box 580, Fort Collins, CO 80522 1800 S County Rd 31, Loveland, CO 80537 jstokes@fcgov.com dfiggs@larimer.org Any such notice shall be effective (i) in the case of personal delivery or by overnight courier, when the notice is actually received, or (ii) in the case of first class mail, the third day following deposit in the United States mail, postage prepaid, addressed as set forth above. Any party may change these persons or addresses by giving notice as required above. 6. If either party should fail or refuse to perform according to the terms of this Agreement, such party may be declared in default thereof. If a party has been declared in default, such defaulting party shall be allowed a period of ten (10) days within which to cure said default. In the event the default remains uncorrected, the party declaring default may elect to (a) terminate the Agreement and seek damages; (b) treat the Agreement as continuing and require specific performance; or (c) avail itself of any other remedy at law or equity. If the non-defaulting party commences legal or equitable actions against the defaulting party, the defaulting party shall be liable to the non-defaulting party for the non- defaulting party's reasonable attorney fees and costs incurred because of the default. EXHIBIT A 5 7. Nothing in this Agreement shall imply any partnership, joint venture, or other association between the City and the County. Each party shall have sole responsibility for the content and the conduct of its activities. Neither party shall use the other’s name or logo to suggest co-sponsorship or endorsement of any activity without the other’s prior written approval. IN WITNESS WHEREOF, the parties hereto have executed this Intergovernmental Agreement concerning the Red Mountain Inholding Conservation Project, on the day and year first above written. THE CITY OF FORT COLLINS, COLORADO, A Municipal Corporation By: _________________________________ Wade O. Troxell, Mayor ATTEST: APPROVED AS TO FORM: City Clerk Assistant City Attorney ____________________________ _________________________________ (print name) (print name) EXHIBIT A 6 LARIMER COUNTY, COLORADO By: _________________________________ Chair, Board of County Commissioners ATTEST: APPROVED AS TO FORM: Clerk County Attorney EXHIBIT A 7 EXHIBIT A Legal Description of the Table Mountain Ranch Property The South ½ of the South ½ of Section 7 and the North ½ of Section 18, all in Township 11 North, Range 69 West of the 6 th P.M.; and the East ½ of Section 12, Township 11 North, Range 70 West of the 6 th P.M., except reservations in Deed recorded in Book 1223 at Page 29 of the records of the County Clerk and Recorder of Larimer County; and commencing at the Southeast corner of the West ½ of said Section 12; thence West along section line 311.00 feet; Thence North parallel to the North and South quarter section line 140.00 feet; Thence East parallel to the South section line 311.00 feet to the quarter section line; Thence South along said section line 140.00 feet to the Point of Beginning, County of Larimer, State of Colorado. EXHIBIT A 8 EXHIBIT B Legal Description of the Previous Joint Purchase Property The North ½ of the Northwest ¼ and the Southeast ¼ of the Northwest ¼ of Section 4, Township 11 North, Range 69 West of the 6th P.M. County of Larimer, State of Colorado; and All of Section 5 and Section 6, Township 11 North, Range 69 West, of the 6th P.M., County of Larimer, State of Colorado, except the Southeast ¼ of the Southwest ¼ and the Southwest ¼ of the Southeast ¼ of Section 6; and The Northeast ¼ of Section 8, Township 11 North, Range 69 West of the 6th P.M. County of Larimer, State of Colorado;