HomeMy WebLinkAboutAgenda - Read Before Packet - 8/4/2021 - City Council August 4,2021 - Agenda Item 5 - Northern Colorado Regional Airport For The Discovery Air Development - Amended August 2, 2021Agenda Item 11
Item # 11 Page 1
AGENDA ITEM SUMMARY July 20, 2021
City Council
STAFF
Jason Licon, Airport Director
Aaron Ehle, Airport Planning & Devt Specialist
Judy Schmidt, Legal
SUBJECT
First Reading of Ordinance No. 095, 2021, Authorizing Conveyance of a Permanent Non-Exclusive Utility
Easement on Property Jointly Owned by the City and the City of Loveland at the Northern Colorado Regional
Airport for the Discovery Air Development.
EXECUTIVE SUMMARY
The purpose of this item is to authorize a permanent non-exclusive utility easement over a portion of Northern
Colorado Regional Airport property owned jointly by the Cities of Fort Collins and Loveland and leased by
Discovery Air, LLC, to allow for the installation and maintenance of electrical infrastructure for the new Discovery
Air development.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
BACKGROUND / DISCUSSION
Northern Colorado Regional Airport is a public facility jointly owned and operated by the Cities of Fort Collins
and Loveland. In 2015, the Cities entered into an intergovernmental agreement (IGA) that formed the Northern
Colorado Regional Airport Commission, which is delegated certain powers and authority to operate and maintain
the Airport. The City Councils of the Cities have the authority to grant an easement as a permanent property
right in the Airport Property.
In connection with the planned Discovery Air development project, the City of Loveland has requested a
permanent non-exclusive easement for electrical infrastructure (the Easement) to serve the development.
According to Fort Collins Municipal Code Sec. 23-114. - Disposition of property interests for less than fair
market value - Any sale, lease or other conveyance of property interests approved under Subsection 23-111(a)
or (b) or § 23-113 above must be for an amount equal to or greater than the fair market value of such interest
unless the City Council or City Manager, as applicable, determines that such sale or lease serves a bona fide
public purpose because:
(1) The use to which the property will be put promotes health, safety or general welfare and benefits a significant
segment of the citizens of Fort Collins;
Northern Colorado Regional Airport is a public use airport which is jointly owned by Fort Collins and Loveland.
This easement will allow for private investment that will bring improvements to the Airport and the users it
serves. The Airport supports many important emergency response and safety functions, such as medevac
flights and aerial firefighting operations. The improvements constructed by Discovery Air will revert to the Cities
and continue to serve the Airport after the expiration of the lease.
ATTACHMENT 1
Agenda Item 11
Item # 11 Page 2
(2) The use to which the property will be put supports one (1) or more of the City Council's goals, adopted
policies, projects or plans;
The easement will allow for private development of the site in alignment with the Airport Master Plan and the
Discovery Air lease agreement, which have both been approved by the City Council.
(3)The financial support provided by the City through the below-market disposition of the property will be
leveraged with other funding or assistance;
The City is benefiting from the grant of easement by allowing its partner, the City of Loveland, to provide utilities
to permit the development of the Airport as guided by the Airport Master Plan. Furthermore, the Cities are
receiving consideration through rent paid by the lessee under the lease agreement, which has been approved
by Council.
(4) The sale or lease will not result in any direct financial benefit to any private person or entity, except to the
extent such benefit is only an incidental consequence and is not substantial relative to the public purpose being
served; and
The easement will simply allow the City of Loveland to provide power to a private development on leased Airport
land, at the developers expense. Ultimately, the Airport and the two Cities benefit from the utilities provided to
permit development at the Airport. Discovery Air will not receive any more benefit than the other customers to
which the City of Loveland provides utility services.
(5) Selling or leasing the property for less than fair market rent will not interfere with current City projects or work
programs, hinder workload schedules or divert resources needed for primary City functions or responsibilities.
Granting the easement will not interfere with any City projects or work programs. The granted easement will
ultimately benefit the Airport and the two Cities.
As the easement meets the above criteria, Airport staff and the Airport Commission recommend approval of the
Easement as it allows for privately-funded aeronautical development on leased land, which will benefit the Airport
and Cities.
BOARD / COMMISSION RECOMMENDATION
The Northern Colorado Regional Airport Commission and the City Councils of Fort Collins and Loveland have
approved the 2020 Airport Master Plan and the Lease Agreement with Discovery Air.
PUBLIC OUTREACH
The development of the 2020 Airport Master Plan, which took more than two years to complete, included
numerous public meetings and significant outreach by the Airport, far exceeding what is recommended by the
Federal Aviation Administration (FAA).
ATTACHMENTS
1. Discovery Air Electrical Easement (PDF)
ATTACHMENT 2
ATTACHMENT 2
ATTACHMENT 2
-1-
WHEREAS, in connection with the planned development of certain undeveloped real
property on the Airport leased to and to be developed by Discovery Air LLC (“Developer”) for
aeronautical uses, Loveland Utilities has requested a permanent non-exclusive easement for
installation of Loveland-owned utility systems to serve the Developer’s leased property (the
“Easement”) over and across that portion of the Airport property legally described on Exhibit A
and depicted on Exhibit Battached hereto and incorporated herein by this reference (the “Easement
Property”); and
WHEREAS, the Cities desire to grant the Easement on the terms and conditions more fully
set forth in the Grant of Utility Easement attached hereto as Exhibit C and incorporated herein by
reference (the “Easement Agreement”); and
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 City's conveyance of the
Easement on the terms and conditions set forth in the Easement Agreement for less than fair market
value serves a bona fide public purpose and is in the best interests of the City as required by City
Code Section 23-114 because:
a. The use to which the Easement Property will be put promotes health, safety or
general welfare and benefits a significant segment of the citizens of Fort Collins by
facilitating private investment in and improvement of the Airport and the users it serves,
-2-
including provision of many important emergency response and safety functions, such as
medevac flights and aerial firefighting operations, and the improvements to be constructed
by Developer that will provide revenue and revert to the Cities and continue to serve the
Airport after the expiration of the lease;
b. The use to which the Easement Property will be put supports one (1) or more of the
City Council's goals, adopted policies, projects or plans, including the Airport Master Plan
and the Developer’s lease and development of Airport property, both of which were
approved by Council;
c. The financial support provided by the City through the below-market disposition
of the Easement Property will be leveraged with other funding or assistance by enabling
the construction and operation of new on-Airport development at Developer’s cost, which
will provide an ongoing revenue stream to the Airport;
d. The sale or lease will not result in any direct financial benefit to any private person
or entity, except to the extent such benefit is only an incidental consequence and is not
substantial relative to the public purpose being served because it will enable development
at the Airport for the benefit of the Cities and the Developer will not receive any benefit
different from that afforded to all customers to which Loveland provides utility services;
and
e. Granting the Easement for less than fair market rent will not interfere with current
City projects or work programs, hinder workload schedules or divert resources needed for
primary City functions or responsibilities and will ultimately benefit the Airport and the
Cities.
Section 3. That the Mayor is hereby authorized to execute the Easement Agreement
substantially in the form attached hereto with such modifications or additional terms and
conditions as the City Manager, in consultation with the City Attorney, determines are necessary
or appropriate to protect the interests of the City or effectuate the purposes of this Ordinance.
-3-
Introduced, considered favorably on first reading, and ordered published this 20th day of
July, A.D. 2021, and to be presented for final passage on the 4th day of August, A.D. 2021.
__________________________________
Mayor
ATTEST:
_____________________________
Interim City Clerk
Passed and adopted on final reading on this 4th day of August, A.D. 2021.
__________________________________
Mayor
ATTEST:
_____________________________
Interim City Clerk
A PARCEL OF LAND SITUATE IN THE EAST HALF OF SECTION 33, TOWNSHIP 6 NORTH, RANGE 68 WEST OF
THE SIXTH PRINCIPAL MERIDIAN; TOWN OF LOVELAND, COUNTY OF LARIMER, STATE OF COLORADO;
BEING A PORTION OF TRACT B, BARNSTORM SECOND ADDITION TO THE CITY OF LOVELAND, AND BEING
MORE PARTICULARLY DESCRIBED AS FOLLOWS:
COMMENCING AT THE NORTHEAST CORNER OF SECTION 33 FROM WHICH THE EAST QUARTER CORNER
OF SECTION 33 BEARS S00°24'16"E A DISTANCE OF 2,599.35 FEET AND CONSIDERING ALL BEARINGS
HEREIN RELATIVE THERETO;
THENCE ON THE EAST LINE OF THE NORTHEAST QUARTER OF SAID SECTION 33, S00°24'16"E A DISTANCE
OF 1964.13 FEET;
THENCE S89°35'44"W A DISTANCE OF 40.49 FEET TO THE POINT OF BEGINNING;
THENCE S70°50'42"W A DISTANCE OF 1182.50 FEET;
THENCE S20°15'13"E A DISTANCE OF 47.25 FEET;
THENCE S70°13'51"W A DISTANCE OF 216.15 FEET;
THENCE S19°43'04"E A DISTANCE OF 1107.97 FEET;
THENCE N70°16'56"E A DISTANCE OF 924.60 FEET;
THENCE N00°02'13"E A DISTANCE OF 815.53 FEET;
THENCE ON A CURVE TO THE RIGHT HAVING A CENTRAL ANGLE OF 09°37'55", A RADIUS OF 865.0 FEET, AN
ARC LENGTH OF 145.42 FEET, AND A CHORD THAT BEARS N04°51'11"E A DISTANCE OF 145.24 FEET;
THENCE N09°40'05"E A DISTANCE OF 280.23 FEET TO THE POINT OF BEGINNING;
SAID PARCEL CONTAINS 29.9 ACRES (1,301,431.40 SQUARE FEET) MORE OR
LESS AND IS SUBJECT TO ALL RIGHTS-OF-WAY, EASEMENTS, AND
RESTRICTIONS NOW IN USE OR OF RECORD.
A PARCEL OF LAND SITUATE IN THE EAST HALF OF SECTION 33, TOWNSHIP 6 NORTH, RANGE 68 WEST OF
THE SIXTH PRINCIPAL MERIDIAN; TOWN OF LOVELAND, COUNTY OF LARIMER, STATE OF COLORADO;
BEING A PORTION OF TRACT B, BARNSTORM SECOND ADDITION TO THE CITY OF LOVELAND, AND BEING
MORE PARTICULARLY DESCRIBED AS FOLLOWS:
COMMENCING AT THE NORTHEAST CORNER OF SECTION 33 FROM WHICH THE EAST QUARTER CORNER
OF SECTION 33 BEARS S00°24'16"E A DISTANCE OF 2,599.35 FEET AND CONSIDERING ALL BEARINGS
HEREIN RELATIVE THERETO;
THENCE ON THE EAST LINE OF THE NORTHEAST QUARTER OF SAID SECTION 33, S00°24'16"E A DISTANCE
OF 2,599.35 FEET;
THENCE S00°37'06"W A DISTANCE OF 349.93 FEET TO THE POINT OF BEGINNING;
THENCE N 89^06'46" W A DISTANCE OF 101.02 FEET;
THENCE S 0^53'14" W A DISTANCE OF 10.00 FEET;
THENCE S 89^06'46" E A DISTANCE OF 100.85 FEET;
THENCE N 0^06'04" W A DISTANCE OF 10.00 FEET TO THE POINT OF BEGINNING;
SAID PARCEL CONTAINS 0.023 ACRES (1,009 SQUARE FEET) MORE OR
LESS AND IS SUBJECT TO ALL RIGHTS-OF-WAY, EASEMENTS, AND
RESTRICTIONS NOW IN USE OR OF RECORD.
EXHIBIT C
EXHIBIT C
EXHIBIT C
EXHIBIT C