HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 01/21/2020 - FIRST READING OF ORDINANCE NO. 018, 2020, AUTHORIZAgenda Item 13
Item # 13 Page 1
AGENDA ITEM SUMMARY January 21, 2020
City Council
STAFF
Keith Hanson, Real Estate Manager
Ryan Malarky, Legal
SUBJECT
First Reading of Ordinance No. 018, 2020, Authorizing the Sale of the Real Property Located at 906 East
Stuart Street to Planet Scale Limited.
EXECUTIVE SUMMARY
The purpose of this item is to authorize the sale of the City-owned property located at 906 East Stuart Street to
Planet Scale Limited, a Colorado limited liability company, for $291,000. The City has no current or future
identified use for the property and disposition of the property will eliminate the City’s ongoing maintenance
expenses and liability risk. The property was advertised on the open market for a minimum 30-day period
during which offerors could submit sealed bids to purchase the property. Planet Scale Limited submitted the
highest bid (out of five) with the ability to close escrow in the shortest amount of time without financing or
change-in-use contingencies. Completion of the purchase is contingent on City Council’s approval of the sale
by its final adoption of this Ordinance in accordance with Article IV, Section 23-111 of the City Code.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
BACKGROUND / DISCUSSION
906 East Stuart Street is comprised of a 2,074-square-foot building on an approximate 1/3-acre lot. The
property is currently zoned LMN (Low Density Mixed-Use Neighborhood District) and was previously used as a
childcare facility. The City acquired the property in 1985 using Community Development Block Grant (CDBG)
funding, which required that it be used to serve low-income residents. From 1985 through 2005, the facility
was leased to Sunshine School. In 2006, the facility was leased to Riversong Waldorf School until 2016 when
they secured a new facility and terminated their lease with the City. All CDBG restrictions on the property had
expired by 2011. The property has remained vacant since 2016.
Planet Scale Limited intends to redevelop the property into a four-unit housing project that will provide one unit
of affordable housing in accordance with the City’s Land Use Code. In accordance with the City’s Land Use
Code and as a condition of the sale, a restrictive covenant will be recorded against the property ensuring for a
twenty-year period that the property will provide a minimum of one unit of affordable housing at 80 percent or
less of the median income of Larimer County. As such, the sale of the property advances Council’s priority to
increase affordable housing in the City. Additionally, proceeds from the sale can be made available to
advance Council’s priority to increase childcare services or other programs as Council desires.
Agenda Item 13
Item # 13 Page 2
CITY FINANCIAL IMPACTS
The sale price is $291,000, which is fair market value as determined by the highest of five bids received. Net
proceeds after costs associated with the sale, including marketing, maintenance, and title/escrow fees will be
deposited in the General Fund.
PUBLIC OUTREACH
The sale of the property was marketed for a minimum of 30 days on Loopnet.com, Zillow.com, and
Craiglist.com, which are websites commonly used to market all types of real property for sale. Local real
estate brokers were contacted regarding the sale. Over 30 interested parties were shown the property.
ATTACHMENTS
1. Location map (PDF)
E STUART ST
SPRINGMEADOWS CT
SPRINGMEADOWS CT
S LEMAY AVE
PAWNEE DR
SEMINOLE DR
CHEYENNE DR
906 E. STUART STREET LOCATION MAP
Location of 906 E. Stuart Street
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SPRING CREEK
HEALTH CARE
CENTER
SPR
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ATTACHMENT 1
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ORDINANCE NO. 018, 2020
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE SALE OF THE REAL PROPERTY LOCATED
AT 906 EAST STUART STREET TO PLANET SCALE LIMITED
WHEREAS, the City has owned the real property located at 906 East Stuart Street (the
“Property”) since 1985; and
WHEREAS, the Property was purchased with Community Development Block Grant
(CDBG) funding for the purpose of providing childcare for low-income families; and
WHEREAS, since acquiring the Property the City has leased it to private entities to
conduct childcare, preschool or early education activities; and
WHEREAS, the Property has remained vacant since 2016 when the last tenant terminated
its lease to move to a new location; and
WHEREAS, the CDBG requirements for use of the Property have expired; and
WHEREAS, the City has no current or future identified use for the Property, and attempts
to lease the Property have been unsuccessful; and
WHEREAS, because the City continues to incur maintenance costs and for the Property,
has some liability exposure in keeping the Property, and there is no foreseeable City use of the
Property, staff is recommending the Property be sold and the proceeds be placed in the General
Fund for use as Council sees fit; and
WHEREAS, City staff has marketed the Property in the open market, and has identified
the highest bid of $291,000, which is consistent with fair market value, submitted by Planet
Scale Limited; and
WHEREAS, Planet Scale Limited intends to redevelop the Property into a four-unit
housing project and has agreed to execute a 20-year restrictive covenant on the Property that will
require a minimum of one affordable housing unit in conformance with the City’s Land Use
Code; and
WHEREAS, Section 23-111(a) of the City Code authorizes the City Council to sell,
convey or otherwise dispose of any interests 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
WHEREAS, under Section 23-114 of the City Code, any sale or lease of City property
interests must be for an amount equal to or greater than the fair market value of such interests
unless the City Council determines that such sale or lease serves a bona fide public purpose
based on the five factors listed in Section 23-114; and
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WHEREAS, the City Council finds that the sale is in the best interests of the City and its
citizens in that it will eliminate the City’s ongoing maintenance expenses and liability risk,
generate fair market sale proceeds that can be used to advance City Council priorities, and allow
the property to be utilized in its highest and best use as determined by the marketplace.
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 906 East Stuart Street to
Planet Scale Limited as provided herein is in the best interests of the City.
Section 3. That the Mayor is hereby authorized to execute a deed and such other
documents as are necessary to convey the Property to Planet Scale Limited 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 21st day of
January, A.D. 2020, and to be presented for final passage on the 4th day of February, A.D. 2020.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
Passed and adopted on final reading on the 4th day of February, A.D. 2020.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk