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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 08/10/2020 - BEHAVIORAL HEALTH ALTERNATIVE PROPOSAL AND SITE SEBACKGROUND The City of Fort Collins is deeply committed to the behavioral health facility and the critical services it will provide to Larimer County residents for decades to come. After expressing concerns about the currently planned site for the behavioral health facility for over a year, and at the invitation of the Larimer County Board of County Commissioners, the City of Fort Collins convened a group to identify potential alternative sites for the facility. All seven other municipalities and the county were invited to participate. This document and associated presentation serves to highlight the top two choices of that group. The concerns about the planned site that the City expressed to the County and to the other jurisdictions leading to the search were as follows: • Proximity to solid waste infrastructure (transfer station, construction and demolition resources recovery site, and industrial compost processing facility) and additional industrial impacts such as truck traffic from a large number of semi-truck trips per day, beeps emitted from heavy equipment, odor concerns, etc. • Equity and stigma concerns for Behavioral Health Facility users having to go to the former landfill being repurposed as an industrial waste facility. • Transportation concerns, including lack of public transportation to the site. • Environmental concerns, including levels of methane and other volatile gasses that exceed regulatory standards and the recommendation to complete a Phase 1 environmental site assessment. o The City of Fort Collins was glad to learn of the results of the Phase II environmental assessment, showing no presence of methane gas at the site. Fort Collins will be interested to see the recommended continued sampling once a week for a month to verify the absence of methane migration. o Fort Collins remains concerned about the volatile organic compounds that have been found in ground and surface water southeast of the current landfill and north of the planned site. • Limits to future growth for either facility, given the close proximity of the Behavioral Health Facility to the regional wasteshed facility. BEHAVIORAL HEALTH FACILITY ALTERNATIVE SITE SEARCH PROCESS After receiving the letter from Larimer County on June 16 inviting the search for alternative sites, Fort Collins City Manager Darin Atteberry reached out via letter and conversation on June 19 to his peers in Berthoud, Estes Park, Johnstown, Loveland, Timnath, Wellington, and Windsor inviting them to identify a representative to assist in this search. While Fort Collins did not hear back from every jurisdiction, the following representatives assisted in the search: • Barry Wilson, Windsor • Jason Damweber, Estes Park • Kelly Jones, Loveland • Hallie Ingraham, Wellington • Kim Meyer, Johnstown • Jennifer Johnson, Larimer County The group began by identifying criteria believed to be important in siting an important facility. Larimer County, in their letter inviting the search, identified several “must haves,” and the alternative site search committee identified additional criteria that they believed to be important. • County-identified criteria: o 40 acres or greater o Within 15 minutes of major medical facility o Zoning allows for use o Utilities present (or easily connected) o Centrally located for county population o Tranquil, natural setting o $2-4M purchase price o Able to construct first facility of plan (58,000 sq. ft.) RECOMMENDATIONS Overall, there were many choices that met Larimer County’s outlined criteria. Price did limit selection, and the stakeholder group narrowed further based on location and adjacent uses. The group also felt a strong desire to not recommend something that would significantly delay the project due to abnormal development costs or timelines. For instance, both recommended alternatives have utilities either on-site or at the property boundaries, whereas the existing site requires the extension of the wastewater system in order to serve the property. In the various discussions the group had, finding a central location within the county proved to be a key piece of criteria the group returned to most often. The preferences of the various stakeholders reflected this when asked to prioritize alternative sites, and in the final recommendations. Both recommended sites are nearly identical in terms of north/ south distance in the county and between the various municipalities, but are arguably more central than the County’s currently identified site given the access off of Highway 287 for both properties. Given Larimer County’s stated preference for purchasing land as an alternative (and reiterated by the County’s stakeholder • Other group-identified criteria: o Not trading one set of concerns for others o Multimodal transportation options o Same relative North/South location within county In order to identify potential sites meeting the set criteria, a variety of approaches were utilized and are summarized below. PROPERTIES SITZMAN – 71 ACRES o In between Fort Collins and Loveland on Highway 287 o FLEX bus stop in immediate proximity, multi-use trail runs through property o Louden Ditch runs on edge of property that could be worked with to integrate preferred naturalist qualities o Utilities are either on-site or at property line. o Asking price of $85k per acre would likely mean subdividing the property, which the owner is more than willing to do. He is “very interested” in working with the County on this effort. o Special review is required for hospital use, with an approximate 6- to 8-month timeframe, but other work such as design, etc., could proceed during this time. A 6- to 8-month review does not necessarily result in a 6- to 8-month delay to opening the facility. o No planned use for the Thompson School District property to the north o 65th Street would likely need to be extended adjacent to the north side of the property, given that it is in Loveland’s urban growth boundary. Estimated cost of $2.6M includes bridge over the Louden Ditch and extension of 65th St to the eastern edge of the property. SITZMAN PROPERTY 6750 S. COLLEGE AVE. – 53 ACRES o Utilities adjacent to site o Transit within immediate proximity o Identical north/south location as planned site, but closer to all major medical facilities o Has some wetlands present, that could be reworked into naturalist features o Meets pricing criteria o Improvements planned for Trilby/College intersection o Property is currently under contract, but in early stages of exploration and approval process with City of Fort Collins 27154 County Road 13 / Johnstown, CO 80534 office 970.669.1463 / fax 970.669.1964 July 31, 2020 Jennifer Johnson Facilities Planning & Real Estate Group Manager 200 West Oak Street, Suite 4000 Fort Collins, CO 80521 Re: Behavioral Health Alternate Site Dear Jennifer: Gerrard Development, LLC (“Gerrard”) is pleased to present an alternate site for the Behavioral Health Facility. As citizens of the Larimer County we understand the importance of this facility to the surrounding cities of Fort Collins, Loveland and Windsor and all of Larimer County, Gerrard has proven track record with Larimer County with this type of project. In 2015 Gerrard responded to RFP P16-01 for the selection of property in Loveland for a new County facility. Larimer County awarded the selection to Gerrard for the property located at Denver and 1 st for the Larimer County Loveland Campus. Gerrard and the County negotiated purchase contract with provision for Gerrard to complete offsite improvements. The Larimer County Loveland Campus project was a resounding success and is a outstanding example of Gerrard’s ability to work with the County and City of Loveland to create a successful project. In an effort to give Larimer County the best possible location for our new behavioral health facility we propose this 40 acre site located on the southeast intersection of North Wilson Ave and 57 th Street in Loveland. The location offers access from both Wilson and 57 th Street and is easily served by Loveland water, sewer and power, Xcel gas, Level 3 and PRPA fiber. It is within ten minutes and twenty minutes of McKee Medical Center and UC Health MCR respectively. In addition to the easy access and ideal location, this site is adjoined by a future sixty acre City of Loveland community park. Please review the enclosed offer packet. We are available to meet at the site or via video/conference call to discuss this opportunity further. Again, thank you for your consideration. Sincerely, Gerrard Development CC: Linda Hoffman, County Manager BEHAVIORAL HEALTH ALTERNATE SITE Northwest Loveland – South East Corner of N Wilson Ave and W 57th Street Future Park Alternate Site 40 acres PRESENTED BY: Gerrard Development, LLC 27154 County Road 13 Johnstown, CO 80534 970-669-1463 office 970-669-1964 fax 27154 County Road 13 / Johnstown, CO 80534 office 970.669.1463 / fax 970.669.1964  The alternate property is located centrally between Fort Collins and Loveland and southeast of the intersection of N. Wilson Ave. and W. 57th Street, in the City of Loveland.  The alternate property is approximately 40 acres, annexed and zoned PUD in Loveland. PUD zoning allows this type of land use.  The City of Loveland has purchased 60.9 acres immediately adjacent for a future community park.  The proximity to the park and open space offer employees, residents and visitors additional open space and access to nature areas and walking trails.  Other adjacent properties are zoned PUD and Residential.  Close proximity to Fort Collins/Larimer County open space and trails. The Front Range Trial system is approximately ¼ mile from the site.  Site is available for immediate construction, with offsite improvements being constructed contemporaneously. (This method was used at the Larimer County Loveland Campus)  City of Loveland provides Water and Sewer which will be stubbed to the site.  Electric is provided by the City of Loveland.  Gas and Level 3 fiber are adjacent to or on site.  Close proximity to PRPA fiber.  Within 1 mile of existing Colt Bus Route.  Site is located approximately 10 minutes from McKee Medical Center and 20 minutes from UC Health Medical Center of The Rockies in Loveland. Behavioral Health Alternate Site 40 acres City of Loveland Future Park 61 acres Alternate Site - Behavioral Health Schematic The Behavioral Health site plan as planned at the northwest corner of Trilby and Taft Hill can easily be modified to fit the alternate site reducing costs to redesign the site plan and closely adhere to the original schedule. Future Park Distance/Routes from site to Medical Facilities UC Health Medical Center of the Rockies McKee Medical Center SITE SITE 27154 County Road 13 / Johnstown, CO 80534 office 970.669.1463 / fax 970.669.1964 Selling Price $4,780,819 Special Terms or Conditions  The alternate site contains approximately 40 acres (39.91 acres). Selling price is $2.75 per square foot.  Land Purchase - $1.65 / sf  Public Improvements - $1.10 / sf Total Purchase Price - $2.75 / sf  “Super pad” permit ready site for the County.  Purchase price can be adjusted based on scoping with Larimer County staff, if additional land is required. to determine site requirements to be constructed by seller for benefit of the County. Additional land available adjacent to the suit, if needed.  Seller will convey the proposed site to Larimer County free and clear of all liens and encumbrances;  Seller will provide an ALTA survey, geotechnical evaluation and environmental report within 45 days of execution of a purchase agreement with Larimer County;  Closing to occur 150 days or sooner from execution of a purchase agreement. 3665 John F Kennedy Parkway Building 2, Suite 202 Fort Collins, Colorado USA 80525 +naiaffinity.1 970 663 com 3150 July 31, 2020 Larimer County Facilities Ms. Jennifer Johnson Facilities Planning & Real Estate Group Manager 200 West Oak, Suite 4100 Fort Collins, Colorado 80521 Delivery via electronic mail Re: Broker Opinion of Value Dear Ms. Johnson: I am writing to share my professional broker opinion of value for the property located near 57th Street & Wilson Aene, Loeland (Proper). M professional opinion is based pon m eensie eperience with brokering the sale of development land in northern Colorado over the past approximately 12 years and several hundred million dollars of transactions in the region over that time. Additionally, I have both ndergradae and masers degrees in real esae, consrcion and finance, as ell as a cerified commercial inesmen member (CCIM) designaion, in addiion o m eperience. With that said, it is my professional opinion that the Property is worth approximately $3.00 per square foot of land area. This is based upon my understanding that the Property will be delivered as an approximately forty (40) acre site with requisite utilities and access at, or adjacent to, the Property. Please note that this is sricl a brokers opinion of ale. We are no an appraisal firm and his shold no be consred as an appraisal, and should not be used for financing purposes. Shold o hae an qesions, please don hesiae o conac me. Thank o for or consideraion of this excellent opportunity for the County. Sincerely, NAI Affinity Jake Hallauer, CCIM President • Multiple Listing Service (MLS) o The Fort Collins Real Estate Services team looked at properties currently on the market and identified those meeting a majority of the stated criteria. • Commercial brokers o Fort Collins engaged local broker Peter Kast to identify sites that he was aware of not showing up on MLS service that may be available and good candidates. o Additionally, Craig Hau contacted the City of Loveland with a listing of 40-acre or greater properties in the county. We have attached this report for reference, and the group reviewed the findings in making recommendations. • Residents of the county reached out to Fort Collins with properties they owned volunteering to be considered as part of this search. • The University of Colorado Health System (UC Health) also looked at their real estate holdings and existing sites to determine potential candidates for consideration. Their most viable option is explained below. group representative), the group chose not to advance an option to lease space on UC Health’s Harmony campus. Should the Commissioners be willing to consider such an agreement, please note that this is an option UC Health is willing to explore further in conjunction with the Health District. All properties, including the planned site at Taft and Trilby, have development costs. For instance, in talking with Fort Collins Loveland Water District, they indicated that the planned site will require approximately 5,900 linear feet of new pipe and a lift station to connect the wastewater system to the property in addition to applying to join the district. Without knowing specifics, broad estimates for completion could range in the $3-5 million range. The sites recommended have utilities adjacent or present on site for connection, and other significant development costs are listed. Loveland’s City Council, in a letter to the Commissioners, indicated their preference for the planned site at Trilby and Taft Hill. That withstanding, the entire stakeholder group was in agreement that if an alternative site were to be pursued, the two presented herein would be the top choices.