HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 02/18/2020 - SECOND READING OF ORDINANCE NO. 035, 2020, APPROPRAgenda Item 11
Item # 11 Page 1
AGENDA ITEM SUMMARY February 18, 2020
City Council
STAFF
Sue Beck-Ferkiss, Social Policy and Housing Program Manager
Jeff Mihelich, Deputy City Manager
Ingrid Decker, Legal
SUBJECT
Second 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
This Ordinance, unanimously adopted on First Reading on February 4, 2020, appropriates 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 Second Reading.
ATTACHMENTS
1. First Reading Agenda Item Summary, February 4, 2020 (w/o attachments) (PDF)
2. Ordinance No. 035, 2020 (PDF)
Agenda 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)
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)
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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.
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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