HomeMy WebLinkAboutMemo - Mail Packet - 4/19/2022 - Memorandum From Jc Ward Re: Parklane Mobile Home Park Sale281 North College Avenue
P.O. Box 580
Fort Collins, CO 80522.0580
970.221.6376
970.224.6134 - fax
4.13.22 Council Memo on Parklane Mobile Home Park Sale 1
Planning, Development & Transportation
MEMORANDUM
DATE: April 13, 2022
TO:Mayor Arndt and City Councilmembers
THRU:Kelly DiMartino, Interim City Manager
Kyle Stannert, Deputy City Manager
Caryn Champine, Director, Planning, Development & Transportation
Paul Sizemore, Director, Community Development & Neighborhood Services
FROM:JC Ward, Sr. City Planner, Neighborhood Services
RE: Parklane Mobile Home Park Sale
This memo is in response to a City Council request at their Regular Meeting April 5, 2022, for information and
potential options for City support of the United Neighbors/Vecinos Unidos nonprofit efforts to purchase
Parklane Mobile Home Park.
The Bottom Line
The Parklane Mobile Home Park in the Fort Collins Growth Management Area is currently listed for sale.
Rather than seeking to become a resident-owned community at this time, residents are pursuing a nonprofit-
ownership model and assigned their legal right to offer to purchase the park to the United Neighbors/Vecinos
April 8, 2022 and are awaiting the decision of the property owner.
Given the status of the purchase, Council could either take no further action or consider other methods of
support. If Council is interested in other methods of support, United Neighbors/Vecinos Unidos did indicate a
need for funding for infrastructure and maintenance. Supporting these needs could help offset future lot rent
increases. City Staff will prepare a few options for Council consideration mid-May.
Background
In December of 2021, Staff was alerted that the Parklane Mobile Home Park residents received a notice of
intent to sell the property from the current property owner. This triggered a 90-day Opportunity to Purchase
window for residents guaranteed under Colorado state law.
Residents assigned their right to make an offer to purchase the park (guaranteed under the Colorado
Mobile Home Park Oversight Act) to the United Neighbors/Vecinos Unidos nonprofit, which secured
financing of $7 million toward the purchase.
The initial 90-day offer deadline was early March 2022, but due to a defect in the notice of intent to sale
issued to residents, the Colorado Mobile Home Park Oversight Program required the property owner to
issue an updated notice and restart the 90-day window. The nonprofit submitted an offer to the property
owner on April 8, 2022. The current deadline to complete negotiations on all offers is May 5, 2022.
If the nonprofit purchases the property, it will need to consider the costs of infrastructure upgrades and
repairs when setting lot rents, which would be anticipated to occur 90-120 days after the purchase is
finalized.
The long-term goal for the nonprofit is for the community to become resident-owned when/if residents
are prepared and supportive of the transfer of ownership.
Parklane MHP is currently within unincorporated Larimer County within the Fort Collins GMA and the
East Mulberry enclave.
281 North College Avenue
P.O. Box 580
Fort Collins, CO 80522.0580
970.221.6376
970.224.6134 - fax
4.13.22 Council Memo on Parklane Mobile Home Park Sale 2
Planning, Development & Transportation
Post-Purchase Infrastructure Needs
mission is to preserve this neighborhood as a source of affordable housing. The inspection process related to
the offer to purchase revealed infrastructure maintenance that had been deferred over time, safety issues now
posed by trees in the neighborhood that had not been maintained, and aging infrastructure in need of repair or
replacement. In typical investor-owned mobile home parks, the cost of these upgrades, maintenance, and
repairs would be passed to residents through one-time assessment or permanent rent increases. With the
nonprofit aiming to keep lot rents affordable and current residents housed, United Neighbors/Vecinos Unidos
needs to identify a different funding source for these infrastructure costs.
To keep lot rent affordable in Parklane MHP, the nonprofit is seeking support for the following
infrastructure needs, either through direct financial or in-kind support. Any support from the City would be
conditional upon the purchase of the Parklane MHP by the nonprofit.
Immediate Infrastructure Repair Needs for Parklane MHP
Asphalt/Concrete pavement & replacement $550,000 $850,000*
Tree maintenance/removal $75,000
Concrete repairs & curbs $50,000
TOTAL $635,000 $935,000
*Based on scope and needs of the project
Comparison with Hickory Village Mobile Home Park City Support for Resident Purchase
In April and May 2021, Fort Collins City Council considered support of an opportunity to purchase the Hickory
Village Mobile Home Park. Hickory Village MHP residents made an initial offer to purchase, but the property
was eventually sold to investor Havenpark Communities.
Hickory Village MHP Parklane MHP
Location Inside Fort Collins city limits In Fort Collins GMA and Mulberry
Enclave
Number of Mobile Home Lots 204 68
Entity Making Offer to
Purchase
Residents Nonprofit with resident support & a
minimum of 1 resident board
member in perpetuity
Estimated Purchase Price $23 million $7 million
Larimer County Funding
Allocated toward Purchase
$150,000 (General Fund Reserves) $1 million (ARPA funds toward
purchase price)
City of Fort Collins Funding
Allocated toward Purchase
$200,000 (General Fund Reserves) N/A
Next Steps
Given the purchase offer and the assessments are complet
Team will continue to work closely with the United Neighbors/Vecinos Unidos to explore in kind and financial
support focused on the infrastructure upgrade and repair costs identified in those assessments. City Staff will
pursue options for Council consideration by the May 17, 2022 City Council meeting, or as part of a General
Fund appropriation. The urgency is minimized now that the nonprofit raised sufficient funds for the land
purchase and associated assessments. We have approximately 30-60 days to follow up with the nonprofit.
Below is a summary of options currently under consideration.
281 North College Avenue
P.O. Box 580
Fort Collins, CO 80522.0580
970.221.6376
970.224.6134 - fax
4.13.22 Council Memo on Parklane Mobile Home Park Sale 3
Planning, Development & Transportation
1. Grant or monetary donation toward the infrastructure upgrades and repairs.
City Staff will prepare scalable options to respond to the infrastructure needs identified in the
assessment. The options will also link to two different funding sources. The Recovery Team and
Finance Departments have assessed that financial support of this option is eligible for American
an off-cycle appropriation.
2. In-kind donation of services, equipment, and/or materials for infrastructure upgrades and
repairs.
City Staff will also consider our ability to utilize subject matter experts and technical professionals on
owned equipment or donation of materials purchased by the City for Parklane MHP improvements.
281 North College Avenue
P.O. Box 580
Fort Collins, CO 80522.0580
970.221.6376
970.224.6134 - fax
4.13.22 Council Memo on Parklane Mobile Home Park Sale 4
Planning, Development & Transportation