HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 08/15/2006 - ITEMS RELATING TO THE SALE OF CERTAIN NATURAL AREA ITEM NUMBER : 23 A- B
AGENDA ITEM SUMMARY DATE : August 15 , 2006
FORT COLLINS CITY COUNCIL STAFF : Mark Sears
Wally Cameron
SUBJECT
Items Relating to the Sale of Certain Natural Areas Lands .
RECOMMENDATION
Staff recommends adoption of the two Ordinances on First Reading. At its August 9th meeting, the
Land Conservation and Stewardship Board voted unanimously to recommend the proposed sale for
approval .
FINANCIAL IMPACT
Sale of the three 35 -acre tracts from the Vangbo property will be subject to a minimum acceptable
purchase price of $275 ,000 each. Sales of the tracts at the minimum acceptable price will result
in a "value recapture" of $ 825 ,000, or 58% of the original fee purchase price of $ 1 ,417 ,500 . The
price per acre of conserving the 105 acres (allowing no more than three building envelopes) will be
reduced from $ 13 ,500 per acre to less than $5 ,700 per acre .
The Hersh property was purchased in 2002 for a total of $ 1 ,020,000, including $ 114,000 for water
rights . Sale of the lots and residence, with a portion of the water rights, will be subject to a
minimum acceptable price of $608,000 on an individual lot purchase basis and $ 550,000 if
purchased in one transaction. Total "value recapture" when the three parcels are sold will decrease
the cost per acre for this addition to Cathy Fromme Prairie Natural Area to about 50% of the
original fee purchase, from about $23 ,700 per acre, including the water rights, to about $ 12,000 per
acre, including about 30% of the water rights purchased in the original transaction.
EXECUTIVE SUMMARY
A . First Reading of Ordinance No . 124, 2006, Authorizing the Conveyance in Fee of the
Vangbo Natural Areas Property Subject to a Conservation Easement for the Benefit of the
City of Fort Collins and the Natural Areas Program.
B . First Reading of Ordinance No. 125 , 2006, Authorizing the Sale of Lots 1 , 2 and 3 of the
Amended Hersh Minor Residential Development for the Benefit of the City of Fort Collins
and the Natural Areas Program.
August 15 , 2006 -2 - Item No . 23 A-B
The first sale authorization and approval is for three thirty-five acre parcels from the 105 acre
Vangbo property purchased in August 2005 . The property is located in the Timnath Community
Separator area along the I-25 frontage, and was purchased from a willing out-of-state seller who was
not interested in selling a conservation easement to the City. The property was purchased in fee,
with the intent of resale of the property, subject to conservation easements granted to the City which
will restrict development of each parcel to a specific building envelope for the purpose of conserving
open space in the Timnath Community Separator. Each tract will be subject to conservation
easements, which will restrict any development which could be allowed under Larimer County
zoning to a specific building envelope . (See Vangbo Area Map attached. )
The second sale transaction is for the resale of three reconfigured lots and one residence and a
portion of the water rights from the 42 . 685 acre Hersh Property purchased in 2002 by the City for
the Natural Areas Program, with the intent to re-cluster and reconfigure the lots to sell for residential
purposes. The original purchase was made in order to preserve and increase the acreage
(approximately 34 .4 acres) of the Cathy Fromme Prairie Natural Area. (See Amended Hersh Minor
Residential Development Plat and Area Map attached.)
BACKGROUND
Vangbo Property
The property was purchased pursuant to the Natural Areas goal of conserving open space in the
Timnath Community Separator Area. The Vangbo property is considered a key parcel in the
northwest quadrant of the separator, having significant frontage along I-25 which had potential of
future commercial development outside the City of Fort Collins Growth Management Area. The
seller resides out of state, and had no interest in maintaining the fee ownership of the property
subject to sale of a conservation easement to the City. The Natural Areas Program agreed to
purchase the property in fee with the goal of selling three tracts, each containing a minimum of 35
acres, and each subject to a conservation easement limiting the development of each parcel to one
primary residence and accessory buildings and/or other acceptable development allowed by Larimer
County. The minimum acceptable selling price is based on recent sales and appraisals of property
in the Timnath Separator Area.
Hersh Property
The City of Fort Collins purchased a 27 .465 acre site with an existing residence at 6021 South
Shields Street for its Natural Areas Program in August 2002 . The residence and other improvements
were subsequently demolished. Concurrent with this purchase, the City purchased an adjoining
15 .22 acres, configured into two lots, one of 2 . 31 acres and the other 12 . 91 acres, which were
created through a Larimer County MRD approved by the County Commissioners in June 1999 .
The former 12 . 91 acre parcel (Lot 1 of the Hersh MRD) has an existing residence, with a current
address of 1340 Midway Drive . The unimproved Lot 2 of the Hersh MRD contained 2 . 31 acres .
These three residential sites were purchased by the City for the Natural Areas Program, assuming
that it would be possible to re-cluster and re-configure the lots for residential purposes . The original
purchase was made in order to preserve and increase the acreage (approximately 34. 3 acres) of the
Cathy Fromme Prairie Natural Area.
August 15 , 2006 -3 - Item No . 23 A-B
The City followed a two-step Larimer County Land Use process to meet this goal. A Minor Land
Division and Amended Plat were approved by Larimer County in June of this year whereby the three
lots purchased were reconfigured as follows :
Previous Configuration of Hersh Property Amended Plat of Subject Acreage
1 Residential Lot of 2 . 31 acres 1 Residential Lot of 2 . 56 acres
1 Residential Lot of 12 .91 acres (improved) 1 Residential Lot of 2 . 67 (improved)
1 Residential Lot of 27 .47 acres 1 Residential Lot of 2 . 54 acres
1 Non-development Lot of 34 . 34 acres
As conditions of approval of the Amended Hersh Minor Residential Development, Larimer County
requires certain infrastructure improvements, including water line extension from Shields Street to
the lots and road improvements within the platted area. All such costs will be borne by the
purchaser or purchasers of the lots, and the minimum acceptable selling price of each lot is
calculated accordingly. The County will require that the Amended Plat dedicate all roads as public
rights-of-way. An ordinance authorizing execution of the Amended Plat with the dedication will
be presented to Council on September 5th.
Conclusion
Staff strongly recommends approval of the sale of these parcels . Such sale will recapture more than
50% of the cost of these acquisitions while meeting all the conservation purposes and goals of the
Natural Areas Program for these acquisitions .
Attachments
l . Vangbo Area Map
2 , Amended Hersh Minor Residential Development Plat and Area Map
ATTACHMENT
Vangbo Location Map
J � ZIt
Va gbo Propeity
�x
�I
� y
V��- a l • I _� 1
I
i
1
t
-_ pj a Qp10LE
p — b �' 6TASlE IN
I �
f3 �i l
C
ATTACHMENT 2
All
tj
ss ( ii
i !
ij i$ 3�, IaF S�
} }
illi 3
�i o�
9 1 V 0 i} --------
.2
41
N
!e Y. is1 ,.�• �� y
CL r
V i
1p
J
s
L
J
"s� C
i
e
� v 9
�t N
i T
a
a o
o V
U r E
u tt
T
a
i
ORDINANCE NO. 124, 2006
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE CONVEYANCE IN FEE OF THE
VANGBO NATURAL AREAS PROPERTY SUBJECT
TO A CONSERVATION EASEMENT FOR THE BENEFIT OF THE
CITY OF FORT COLLINS AND THE NATURAL AREAS PROGRAM
WHEREAS, the City of Fort Collins through its Natural Resources Department, Natural
Areas Program purchased a 105 acre property for the purpose of conserving lands in the Timnath
Community Separator Area located in Latimer County, Colorado, described in Exhibit "A"
attached hereto and incorporated herein by this reference (the "Vangbo Property"); and
WHEREAS, the Natural Areas Program, in order to protect the Vangbo Property from
future commercial and/or other high impact development, purchased the Vangbo Property in fee
with the intention of selling the property or portions of the property, subject to conservation
easements which would limit the Property to minimal residential development; and
WHEREAS, the maximum subdivision of the Vangbo Property allowed by right in
Larimer County is three 35-acre minimum tracts and staff is proposing the sale of such tracts
individually or in combination depending upon the offers received for the same; and
WHEREAS, any such sale will be conditioned upon the granting of a conservation
easement to the City to limit the development of the Vangbo Property to a specific building
envelope with up to three primary residences and/or other structures allowed by Larimer County,
with the remainder of the parcel reserved for natural habitat, agricultural, and other uses
consistent with the goals and purposes of the Natural Areas Program; and
WHEREAS, Section 23-111 of the City Code provides that the City Council is
authorized to sell, convey, or otherwise dispose of real property owned by the City, provided the
Council first finds by ordinance that any sale or other disposition of real property owned by the
City will be for the benefit of the City's citizens and is in the best interest of the City of Fort
Collins; and
WHEREAS, City staff has estimated that the minimum fair market value of the Vangbo
Property, if divided into 35-acre parcels encumbered by a conservation easement, is $825,000.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. That the conveyance of the Vangbo Property as one or more legal parcels, as
set forth herein, will be for the benefit of the City's citizens and is in the best interest of the City
of Fort Collins.
Section 2. That the Mayor is hereby authorized to execute such documents of
conveyance as are necessary to convey all or portions of the Vangbo Property, upon the terms
and conditions described above, together with such additional terms and conditions as the City
Manager, in consultation with the City Attorney, determines to be necessary and appropriate to
protect the interests of the City, including any necessary corrections to the legal descriptions
thereof that do not result in a material increase or change in character of the property conveyed.
Introduced, considered favorably on first reading, and ordered published this 15th day of
August, A.D. 2006, and to be presented for final passage on the 5th day of September, A.D.
2006.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading on the 5th day of September, A.D. 2006.
Mayor
ATTEST:
City Clerk
EXHIBIT "A"
Legal Description
of the Vanabo Property
A tract of land situate in the Southwest 1/4 of Section 22,Township 7 North, Range 68 West
of the Sixth P.M., Larimer County, State of Colorado, which considering the West line of
the said Southwest'/4 as bearing North 00 degrees 16 minutes 00 seconds East and with
all bearings contained herein relative thereto is contained within the boundary lines which
begin at a point on the East line of the said Southwest 1/4 which bears South 00 degrees
15 minutes 38 seconds West 1,254.16 feet from the center 1/4 corner of said Section 22
and run thence South 00 degrees 15 minutes 38 seconds West 1,390.61 feet along the
said East line to the South 1/4 corner of said Section 22; thence North 89 degrees 56
minutes 41 seconds West 2,047.49 feet along the South line of said Southwest 1/4 to a
point on the Easterly line of Interstate Highway No. 25 thence along the said Easterly line
North 12 degrees 34 minutes 00 seconds West 1,025.05 feet and again North 00 degrees
44 minutes 00 seconds East 416.30 feet and again along the arc of a 11,240.00 foot radius
curve to the right a distance of 588.58 feet,the long chord of which bears North 09 degrees
48 minutes 20 seconds West 588.51 feet and again North 20 degrees 48 minutes 30
seconds West 397.40 feet and again along the are of a 11,375.00 foot radius curve to the
right a distance of 285.47 feet, the long chord of which bears North 05 degrees 37 minutes
01 seconds West 285.46 feet to a point on the North line of the said Southwest 1/4; thence
South 89 degrees 47 minutes 12 seconds East 1,367.17 feet along the said North line;
thence South 00 degrees 15 minutes 38 seconds West 1,257.41 feet; thence South 89
degrees 56 minutes 41 seconds East 1,179.41 feet to the Point of Beginning, County of
Larimer, State of Colorado.
ORDINANCE NO. 125, 2006
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE SALE OF
LOTS 1, 2 AND 3 OF THE AMENDED HERSH MINOR
RESIDENTIAL DEVELOPMENT FOR THE BENEFIT
OF THE CITY OF FORT COLLINS AND THE NATURAL AREAS PROGRAM
WHEREAS, the City of Fort Collins through its Natural Resources Department, Natural
Areas Program purchased three contiguous residential properties which total 42.7 acres located
in Larimer County, Colorado, (the "Hersh Property"); and
WHEREAS, the Natural Areas Program purchased the Hersh Property in order to expand
the Cathy Fromme Prairie Natural Area with a contiguous parcel; and
WHEREAS, the Natural Areas Program has obtained Larimer County approval to
reconfigure and cluster the Hersh Property residential lots to create one large undeveloped lot of
34.4 acres and three smaller lots, now legally described as Lots 1, 2, 3, and 4 of the Amended
Hersh Minor Residential Development situate in the Northeast Quarter of Section 10, Township
6 North, Range 69 West of the 6th P.M., County of Larimer, State of Colorado; and
WHEREAS, the sale of the two vacant and one improved re-configured and clustered lots
(Lots 1-3 of the Amended Hersh Minor Residential Development, hereinafter referred to as "the
Sale Parcels") will recapture about one-half of the cost of the original purchase while meeting
the Natural Areas Program goal of adding a significant adjoining acreage to the Cathy Fromme
Prairie Natural Area; and
WHEREAS, City staff has estimated a minimum fair market value for the Sale Parcels,
including the residence on Lot 1, at a total of$550,000, assuming that all costs of development
required by Larimer County will be borne solely by the purchaser or purchasers; and
WHEREAS, Section 23-111 of the City Code provides that the City Council is
authorized to sell, convey, or otherwise dispose of real property owned by the City, provided the
Council first finds by ordinance that any sale or other disposition of real property owned by the
City will be for the benefit of the City's citizens and is in the best interest of the City of Fort
Collins;
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. That the conveyance of the Sale Parcels, as set forth herein, will be for the
benefit of the City's citizens and is in the best interest of the City of Fort Collins.
Section 2. That the Mayor is hereby authorized to execute such documents of
conveyance as are necessary to convey the Sale Parcels, upon the terms and conditions described
above, together with such additional terms and conditions as the City Manager, in consultation
with the City Attorney, determines to be necessary and appropriate to protect the interests of the
City, including any necessary corrections to the legal descriptions thereof that do not result in a
material increase or change in character of the property conveyed.
Introduced, considered favorably on first reading, and ordered published this 15th day of
August, A.D. 2006, and to be presented for final passage on the 5th day of September, A.D.
2006.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading on the 5th day of September, A.D. 2006.
Mayor
ATTEST:
City Clerk