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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 02/04/2020 - FIRST READING OF ORDINANCE NO. 035, 2020, APPROPRIAgenda Item 20 Item # 20 Page 1 AGENDA ITEM SUMMARY February 4, 2020 City Council STAFF Sue Beck-Ferkiss, Social Policy and Housing Program Manager Jeff Mihelich, Deputy City Manager Ingrid Decker, Legal SUBJECT First Reading of Ordinance No. 035, 2020, Appropriating Prior Year Reserves to Purchase Property on North College Avenue for the Affordable Housing Land Bank. EXECUTIVE SUMMARY The purpose of this item is to appropriate funds for the purchase of an approximately 5-acre parcel of land just west of North College Avenue for the City's affordable housing Land Bank Program. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION The Land Bank Program is the City’s only long-term affordable housing development incentive. The program is designed to buy land for future affordable housing development. This locks in land values at current prices with an expectation of appreciation. That allows the land to be sold at no more than 90% of the fair market value at the time of development, building in subsidy for the ultimate affordable housing project. This also preserves locations for the future to ensure that affordable housing will be well distributed throughout the City. City Code requires the proceeds of the sale of land bank parcels to be used to buy more land for future affordable housing development. Since the sale of the Horsetooth land bank parcel to Housing Catalyst for the development of the Village on Horsetooth, staff has been looking for land to add to the Land Bank Program. The western portion of the property owned by Hoag Commercial Rentals LLC, located at 1475 North College Avenue has been identified as a good addition to the Land Bank Program’s holdings (the portion is approximately 5 acres). (Attachment 1.) The seller will retain the eastern portion of the property. This site meets the City Code requirements for Land Bank acquisitions as follows: • The land must be acquired from a willing seller. The seller approached the City with this opportunity. • The cost must not exceed fair market value. Based on information on market values provided by City Real Estate Services staff, the cost of this property does not exceed fair market value. (Attachment 2) • Either at the time of acquisition or within 10 years the land will likely be within one-half mile of at least 3 of the 5 planned or existing facilities: Public transit route; public school; park; employment, industrial, campus or downtown district; and commercial center. This property is currently within ½ mile of public transit routes, employment areas, and commercial centers. (Attachment 3) • The land must be within the Fort Collins Growth Management Area (GMA). This parcel is in the City’s GMA. (Attachment 1) Agenda Item 20 Item # 20 Page 2 City Code authorizes the City Manager to acquire land on behalf of the City for the Land Bank Program when funds have been appropriated for this purpose. The final purchase price for this parcel cannot be calculated until a survey of the land has been completed. The intention is to acquire the western section of the property which is estimated at around 5 acres. The parties have agreed to a price of five dollars and 85 cents ($5.85) per square foot to be calculated after the survey is completed and prior to closing on the purchase. The parties anticipate that the total purchase price will not exceed $1,276,679. This item seeks an appropriation of up to $1,276,679 for the purchase of the western portion of the parcel as identified by the survey. If the final purchase price is less than the appropriated amount, less funding will be used. If additional funding is required, staff will return to Council for consideration of that different amount. The Land Bank Program has the funding necessary to complete this purchase. CITY FINANCIAL IMPACTS The City will pay up to $1,276,679 for a land bank parcel with funds from the Land Bank Program Reserves within the General Fund and will own an asset valued at the same amount. BOARD / COMMISSION RECOMMENDATION The Affordable Housing Board has been made generally aware of staff’s efforts to locate and purchase another land bank parcel but has not been given particulars about this parcel. PUBLIC OUTREACH None. ATTACHMENTS 1. Location map (PDF) 2. Comparable Values Map (PDF) 3. Parcel Proximity to Amenities (PDF) 4. Powerpoint presentation (PDF) ATTACHMENT 1 Potential Land Bank Purchase West of 1475 North College $5.36/SF $7/SF $10.98/SF $5.60/SF $5.50/SF $10/SF $10.62/SF $5.30/SF $6.43/SF $5.85/SF HOAG PROPERTY PASCAL ST WESTWOOD DR BLUE SPRUCE DR CAJETAN ST N MASON ST URBAN PRAIRIE ST CONIFER ST OSIANDER ST N COLLEGE AVE BLONDEL ST BUTCH CASSIDY DR ALPINE ST BIRCH FIREWEED LN WALLFLOWER LN LUPINE DR ECHO MOUNTAIN LN SANGRE DE CRISTO LN LA GARITA LN E SUNIGA RD EMMAUS LN N MASON ST HIBDON CT W SUNIGA RD JEROME ST E VINE DR WOODLAWN DR BRISTLECONE DR HEMLOCK ST HICKORY ST RED CEDAR CIR ± Hoag/Comparable Values ATTACHMENT 2 #17IS1 REDWING MARSH NATURAL AREA SALYER NATURAL AREA ! 81 ! 81 ! 81 W WILLOX LN E WI L L O X L N N COLLEGE AVE ! 8 ! 8 ! 8 361 364 365 1431 363 1470 808 362 1447 1434 1433 360 1430 1432 488 1462 ©2019 Printed: November 21, Scale000 1:4, Amended: January 20, 2015 Hoag Property - Proximity to Amenities Commercial Area Employment Area Transit Line 0 300 600 900 1,200 Feet Hoag Property ATTACHMENT 3 1 Appropriation for Land Bank Property Purchase Sue Beck-Ferkiss 2-4-2020 ATTACHMENT 4 Fort Collins Affordable Housing Land Bank • Only long-range affordable housing incentive • Proactive not reactive • Holds locations for future affordable housing community • Locks in price • Provides good distribution ©Copyright 2014 City of Fort Collins. All Rights Reserved 2 Strategic Alignment 3 Land Bank Program Council Priority City Plan, SSD Strategic Plan City Strategic Plan Neighborhood Livability & Social Health 1.1 Affordable Housing Strategic Plan 4 Land Bank Parcels Location of Vacant Land 5 Purchase Considerations ü Willing Seller ü Cost does not exceed fair market value ü Currently or will be within ½ mile of at least 3 of the following: 1. Transit Route 2. School 3. Park 4. Employment Center 5. Commercial Center ü Located in City Growth Management Area 6 Appropriation for Land Bank Purchase • Western vacant portion of 1475 N. College Avenue • Price negotiated per square foot = $5.85 • Survey needed to finalize purchase price • Appropriation based on 5 Acres +/- • Authorization is for no more than $1,276,679 • Zoning = Service Commercial (CS) • Estimate that 75 +/- homes could be developed 7 -1- ORDINANCE NO. 035, 2020 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING PRIOR YEAR RESERVES TO PURCHASE PROPERTY ON NORTH COLLEGE AVENUE FOR THE AFFORDABLE HOUSING LAND BANK WHEREAS, on April 17, 2001, the City Council adopted Ordinance No. 048, 2001, enacting Article XIII of the Chapter 23 of the City Code regarding land banking; and WHEREAS, the purpose of the land bank program is to enable the City to acquire, hold and sell real property to assist housing providers in providing affordable rental and homeownership housing for low-income residents; and WHEREAS, in 2017 the City sold a land bank property to Housing Catalyst for construction of the Village on Horsetooth project, and since then City staff has been looking for an appropriate parcel to purchase with the proceeds of that sale; and WHEREAS, the owner of a property at 1475 North College Avenue has offered to sell the eastern portion of that property, approximately 5 acres in size, to the City for land bank purposes (the “Property”), with the owner retaining the remaining parcel; and WHEREAS, the Property meets the criteria specified in Section 23-352 of the City Code for acquisition of land bank properties; and WHEREAS, the purchase price of the Property would be $5.85 per square foot with the precise square footage to be determined by a survey once the Property is under contract; and WHEREAS, City staff expects that the total purchase price of the Property will not exceed $1,276,679, and so has requested that the Council appropriate that amount for purchase of the Property; and WHEREAS, this appropriation benefits public health, safety and welfare of the citizens of Fort Collins and serves the public purpose of adding property to the City’s land banking program for the future construction of affordable housing; and WHEREAS, Article V, Section 9 of the City Charter permits the City Council to appropriate by ordinance at any time during the fiscal year such funds for expenditure as may be available from reserves accumulated in prior years, notwithstanding that such reserves were not previously appropriated; and WHEREAS, the City Manager has recommended the appropriation described herein and determined that this appropriation is available and previously unappropriated from the General Fund and will not cause the total amount appropriated in the General Fund to exceed the current estimate of actual and anticipated revenues to be received in that fund during any fiscal year. -2- 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 there is hereby appropriated from prior year reserves in the General Fund within the Land Bank Program the sum of ONE MILLION TWO HUNDRED SEVENTY- SIX THOUSAND SIX HUNDRED SEVENTY-NINE DOLLARS ($1,276,679) for expenditure in the General Fund for the purchase of the eastern portion of the property at 1475 North College Avenue, as described herein. Introduced, considered favorably on first reading, and ordered published this 4th day of February, A.D. 2020, and to be presented for final passage on the 18th day of February, A.D. 2020. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 18th day of February, A.D. 2020. __________________________________ Mayor ATTEST: _______________________________ City Clerk