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HomeMy WebLinkAboutMemo - Mail Packet - 09/02/2025 - Memorandum from Dana Hornkohl re August 19, 2025 Council Regular Meeting – Engineering Department Capital Projects Follow-up 1 Memorandum Date: August 28, 2025 To: Mayor and City Councilmembers Through: Kelly DiMartino, City Manager Caryn Champine, Director of Planning Development & Transportation Brad Buckman, City Engineer From: Dana Hornkohl, Capital Projects Manager, Engineering, dhornkohl@fcgov.com Subject: August 19, 2025, Council Regular Meeting – Engineering Department Capital Projects Follow-Up Bottom Line At the August 19, 2025, City Council regular meeting, there was a question from Councilmember Ohlson concerning agenda item no. 18 during consent calendar follow-up. The Councilmember raised three questions/concerns.  How many times have items related to Cordova Road acquisition come before City Council?  Is this request indicative of a pattern of developer requests for the City to utilize eminent domain to fulfill their development obligations?  Is the developer seeking to reduce their costs by requesting the City to pursue a friendly condemnation process? Three items, listed below, relating to the acquisition of right-of-way for Cordova Road and The Landing at Lemay development have been brought before City Council. The first two items sought appropriation of development contributions from TTRES CO Fort Collins Vine, LLC (Developer) to the Cordova Road – North of Duff Drive project (Project). The third items is requesting authorization to utilize acquisition by eminent domain.  08/20/2024 and 09/03/2024: Seeking appropriation of a developer contribution to pursue acquisition of property to be utilized for Cordova Road right-of-way, Ordinance No. 116, 2024 (Attachment 1). Docusign Envelope ID: 95BE294C-C1D2-4710-A0D4-D660297519EC 2  03/04/2025 and 03/18/2025: Seeking appropriation of a developer contribution to make infrastructure improvements for Cordova Road, ordinance No. 034, 2025 (Attachment 2).  08/19/2025, First reading of an ordinance seeking to authorize the use of eminent domain, Draft Ordinance No. 135, 2025 (Attachment 3). Staff (Real Estate Services and Engineering) do not believe the Developer request is representative of a pattern. There are past instances of development seeking the City’s assistance in obtaining property for right-of-way or easements (Fort Collins Rescue Mission, Huntington Hills 7th Filing, and Front Range Village). These requests are rare and do not always result in the use of eminent domain. The example requests were made because of an inability to meet a requirement, rather than a desire to avoid paying the fair market value of the property rights. In this instance, there is no indication that the Developer will benefit monetarily from the use of eminent domain. The Developer and the current owner (Scion) were able to come to a verbal agreement on the property value ($500,000). Scion is unable to remove the property from a lien agreement and asked if the City would pursue a friendly condemnation, assuming the previously negotiated property value. If the friendly condemnation is successful and completed before the Developer has ceased construction, the Developer will be required to build Cordova Road, between Duff Drive and Link Lane. The Developer will be able to construct this section of Cordova Road at a lower cost than the City. Attachments  Ordinance No. 116, 2024.  Ordinance No. 034, 2025.  Draft Ordinance No. 135, 2025. Docusign Envelope ID: 95BE294C-C1D2-4710-A0D4-D660297519EC ORDINANCE NO.116,2024 OF THE COUNCIL OF THE CITY OF FORT COLLINS MAKING SUPPLEMENTAL APPROPRIATIONS OF REVENUE FROM DEVLOPER CONTRIBUTIONS AND AUTHORIZING TRANSFERS FOR THE CORDOVA ROAD RIGHT-OF-WAY ACQUISITION A.This Ordinance appropriates developer contribution funds to acquire the right-of-way necessary to complete the extension of Cordova Road through to Link Lane the “Acquisition”). B.Cordova Road is an existing roadway from the roundabout at Lincoln Avenue to Duff Drive,built by the Capstone Collage development in 2017. C.On September 21,2023,the Planning and Zoning Commission approved The Landing at Lemay Project Development Plan (“PDP”).The Landing at Lemay Project is located directly north of Capstone Collages,and the PDP depicts the developer’s dedication and construction extending Cordova Road from Duff Drive to Link Lane. D.After the Planning and Zoning Commission approval and before entitlement,the developer informed the City that they were unable to acquire the Acquisition. E.By the terms of their subsequently negotiated development agreement with the City,the developer agreed to provide the City $500,000 towards securing the Acquisition. F.Per the development agreement,if the City is successful in acquiring the Acquisition while The Landing at Lemay is under construction,the developer will construct the Cordova Road extension. G.Article V,Section 9 of the City Charter permits the City Council,upon recommendation of the City Manager,to make a supplemental appropriation by ordinance at any time during the fiscal year,provided that the total amount of such supplemental appropriation,in combination with all previous appropriations for that fiscal year,do not exceed the current estimate of actual and anticipated revenues and all other funds to be received during the fiscal year. H.The City Manager has recommended the appropriation described herein and determined that this appropriation is available and previously unappropriated from the Capital Project fund and will not cause the total amount appropriated in the Capital Project fund to exceed the current estimate of actual and anticipated revenues and all other funds to be received in this fund during this fiscal year. I.The City Manager has recommended the appropriations described herein and determined that these appropriations are available and previously unappropriated Docusign Envelope ID: 95BE294C-C1D2-4710-A0D4-D660297519EC from the Transportation Improvement fund and will not cause the total amount appropriated in the Transportation Improvement fund,as applicable,to exceed the current estimate of actual and anticipated revenues and all other funds to be received in these funds during this fiscal year. J.Article V,Section 10 of the City Charter authorizes the City Council,upon recommendation by the City Manager,to transfer by ordinance any unexpended and unencumbered appropriated amount or portion thereof from one fund or capital project to another fund or capital project,provided that the purpose for which the transferred funds are to be expended remains unchanged,the purpose for which the funds were initially appropriated no longer exists,or the proposed transfer is from a fund or capital project in which the amount appropriated exceeds the amount needed to accomplish the purpose specified in the appropriation ordinance. K.The City Manager has recommended the transfer of $500,000 from the Transportation Improvement fund to the Capital Project fund and determined that the purpose for which the transferred funds are to be expended remains unchanged. L.Article V,Section 11 of the City Charter authorizes the City Council to designate in the ordinance when appropriating funds for a capital project or for a federal, state or private grant or contribution,that such appropriation shall not lapse at the end of the fiscal year in which the appropriation is made,but continue until the completion of the capital project or until the earlier of the expiration of the federal,state or private grant or private contribution the City’s expenditure of all funds received from such contribution. M.The City Council wishes to designate the appropriation herein for the developer contribution as an appropriation that shall not lapse until the earlier of the expiration of the contribution or the City’s expenditure of all funds received from the contribution. N.The appropriations in this Ordinance benefit public health,safety and welfare of the residents of Fort Collins and serve the public purpose of improving transportation infrastructure within the City. In light of the foregoing recitals,which the Council hereby makes and adopts as determinations and findings,BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1.There is hereby appropriated from new revenue or other funds in the Transportation Improvement fund the sum of FIVE HUNDRED THOUSAND DOLLARS 500,000)to be expended in the Transportation Improvement fund for transfer to the Capital Projects fund and appropriated therein for the Acquisition. Docusign Envelope ID: 95BE294C-C1D2-4710-A0D4-D660297519EC Section 2.The appropriation herein for the developer contribution is designated as an appropriation that shall not lapse until the earlier of the expiration of the private contribution or the City’s expenditure of all funds received from such contribution. Introduced,considered favorably on first reading on August 20,2024,and approved on second reading for final passage on September 3,2024. Mayor Pro Tern ATTEST: ity erk Effective Date:Septernber 13,2024 Approving Attorney:Heather N.Jarvis Docusign Envelope ID: 95BE294C-C1D2-4710-A0D4-D660297519EC ORDINANCE NO.034,2025 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING A DEVELOPMENT CONTRIBUTION TO CONSTRUCTION AND AUTHORIZING TRANSFERS OF APPROPRIATIONS FOR THE CORDOVA ROAD CORRIDOR PROJECT AND RELATED ART IN PUBLIC PLACES A.The purpose of this item is to appropriate development contributions to construction that the City collected in 2025 from the developer of The Landing at Lemay development project to the Cordova Road Corridor capital project (the “Project”). B.In 2024,TTRES CO Fort Collins Vine,LLC (“Developer”)entered into a Development Agreement (“DA”)with the City.The DA sets forth the requirements and conditions for the development of The Landing at Lemay property bounded by North Lemay Avenue (to the west),Duff Drive (to the south),and the future extension of Cordova Road (to the east).The DA contemplates that the Developer would make development contributions to construction payments for improvements including the future Cordova Road (DA Section ll.D.1 and DA Section ll.D.2.a). C.The Landing at Lemay’s development contributions for Cordova Road are proposed to be appropriated to the Project to aid in the design,acquisition,and construction of Cordova Road between Duff Drive and North Link Lane.Cordova Road is classified as a two-lane arterial roadway on the Master Street Plan adopted by City Council on December 5,2023.The establishment of the alignment and classification of Cordova Road originated with the East Mulberry Corridor Plan adopted by City Council on September 17,2002. D.Article V,Section 9 of the City Charter permits the City Council,upon recommendation of the City Manager,to make a supplemental appropriation by ordinance at any time during the fiscal year,provided that the total amount of such supplemental appropriation,in combination with all previous appropriations for that fiscal year,do not exceed the current estimate of actual and anticipated revenues and all other funds to be received during the fiscal year. E.The City Manager has recommended the appropriation described herein and determined that the funds to be appropriated are available and previously unappropriated from the Transportation Services fund and Capital Projects fund that this appropriation will not cause the total amount appropriated in Transportation Services Fund and Capital Projects fund to exceed the current estimate of actual and anticipated revenues and all other funds to be received in this fund during this fiscal year. F.Article V,Section 10 of the City Charter authorizes the City Council,upon recommendation by the City Manager,to transfer by ordinance any unexpended and unencumbered appropriated amount or portion thereof from one fund or capital project to another fund or capital project,provided that the purpose for which the transferred funds are to be expended remains unchanged,the purpose for which the funds were initially Docusign Envelope ID: 95BE294C-C1D2-4710-A0D4-D660297519EC appropriated no longer exists,or the proposed transfer is from a fund or capital project in which the amount appropriated exceeds the amount needed to accomplish the purpose specified in the appropriation ordinance G.The City Manager has recommended the transfer of $226,564 from the Transportation Services fund to the Capital Projects fund and determined that the purpose for which the transferred funds are to be expended remains unchanged. H.This Project involves construction estimated to cost more than $250,000 and,as such,City Code Section 23-304 requires one percent of these appropriations to be transferred to the Cultural Services and Facilities Fund for a contribution to the Art in Public Places (“APP”)program. I.The total project cost of $226,564 has been used to calculate the contribution to the APP program. J.The amount to be contributed in this Ordinance will be $2,266. K.Article V,Section 11 of the City Charter authorizes the City Council to designate in the ordinance when appropriating funds for a capital project that such appropriation shall not lapse at the end of the fiscal year in which the appropriation is made but continue until the completion of the capital project. L.The City Council wishes to designate the appropriation herein for the Project as an appropriation that shall not lapse until the completion of the Project. M.The appropriations in this Ordinance benefit public health,safety,and welfare of the residents of Fort Collins and the traveling public and serve the public purpose of improving transportation infrastructure within the city. In light of the foregoing recitals,which the Council hereby makes and adopts as determinations and findings,BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1.There is hereby appropriated from new revenue in the Transportation Services Fund the sum of TWO HUNDRED TWENTY-SIX THOUSAND FIVE HUNDRED SIXTY-FOUR DOLLARS ($226,564)to be expended in the Transportation Services fund for Transfer to the Capital Projects fund to be expended therein for the design of the Cordova Road Corridor Project. Section 2.The unexpended and unencumbered appropriated amount of ONE THOUSAND SEVEN HUNDRED SIXTY-SEVEN DOLLARS ($1,767)in the Capital Projects fund is hereby authorized for transfer to the Cultural Services and Facilities fund and appropriated and expended therein to fund art projects under the APP program. Docusign Envelope ID: 95BE294C-C1D2-4710-A0D4-D660297519EC Section 3.The unexpended and unencumbered appropriated amount of FOUR HUNDRED FIFTY-THREE DOLLARS ($453)in the Capital Projects fund is hereby authorized for transfer to the Cultural Services and Facilities fund and appropriated and expended therein for the operation costs of the APP program. Section 4.The unexpended and unencumbered appropriated amount of FORTY-FIVE DOLLARS ($45)in the Capital Projects fund is hereby authorized for transfer to the Cultural Services and Facilities fund and appropriated and expended therein for the maintenance costs of the APP program. Section 5.The appropriation herein for Cordova Road Corridor Project is hereby designated,as authorized in Article V,Section 11 of the City Charter,as an appropriation that shall not lapse at the end of this fiscal year but continue until the completion of the project. Introduced,considered favorably on first reading on March 4,2025,and approved on second reading for final passage on March 18,2025. ATTEST: J ~ C CI/ Effective Date:March 28,2025 Approving Attorney:Heather N.Jarvis Docusign Envelope ID: 95BE294C-C1D2-4710-A0D4-D660297519EC -1- ORDINANCE NO. 135, 2025 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE ACQUISITION BY EMINENT DOMAIN PROCEEDINGS OF CERTAIN LANDS NECESSARY TO CONSTRUCT CORDOVA ROAD – NORTH OF DUFF DRIVE A. The City’s Master Street Plan, adopted November 21, 2023, shows Cordova Road extending northeast from Duff Drive, turning southeast, and eventually connecting to the existing section of International Boulevard. Cordova Road is an existing roadway from the roundabout at Lincoln Avenue to Duff Drive, built by the Capstone Cottage development in 2017. The Master Street Plan (adopted November 21, 2023) shows Cordova Road extending northeast from Duff Drive, turning southeast, and eventually connecting to the existing section of International Boulevard. This extension will provide alternative ingress and egress to several neighborhoods and schools in the area. B. To complete the construction of Cordova Road north of Duff Drive (the “Project”), the City of Fort Collins will need to acquire a section of the right-of-way necessary to ensure construction of Cordova Road, north of Duff Drive. This real property is described in Exhibit A, which is attached hereto and incorporated herein (the “Property”). The site address of the Property is 1292 East Lincoln Avenue, Parcel No. 8707200015, according to Larimer County records. C. The Landing at Lemay Project Development Plan directly north of Capstone Cottages, was approved by the Planning and Zoning Commission on September 21, 2023, and depicted the developer’s dedication of the Property and construction of Cordova Road from Duff Drive to Link Lane. After the Planning Commission’s approval but before entitlement, the developer informed the City that the developer was unable to acquire the Property. D. In the development agreement for the Landing at Lemay, the developer agreed to provide the City with $500,000 towards securing the Property identified for the Cordova Road right-of-way. If the City is successful in acquiring the Property while the Landing at Lemay is under construction, the developer will complete the construction of the Project. E. If the City is not successful in acquiring the Property while the Landing at Lemay is under construction, the developer has made an additional $226,564 payment- in-lieu (PIL) for construction of the local portion of Cordova Road between Duff Drive and Link Lane associated with the Property. This PIL will be returned to the developer if the Property is acquired within the established tim eframe. The City Council appropriated the developer contribution for acquisition of the Property with Ordinance No. 116, 2024, and the developer contribution for the PIL with Ordinance No. 034, 2025. F. The City has begun good faith negotiations for the acquisition of the Property. City staff has contacted the property owner, CCC-Fort Collins LLC, to inform them of the City’s intent to acquire the parcel in question and determine the owner’s willingness to sell the parcel. After several conversations with the property owner, the Page 318 Item 18. Docusign Envelope ID: 95BE294C-C1D2-4710-A0D4-D660297519EC -2- property owner has requested that the City pursue a condemnation process, as the property owner has been unable to negotiate a release from the lender’s interest in the property. Currently, City staff believes the condemnation will be a friendly condemnation (uncontested) and believes that the City and the property owner will be able to come to an agreement on the sale price for the parcel. G. The acquisition process will be conducted according to federal and state eminent domain requirements, which must be followed for all property interests throughout the entire acquisition process. These requirements ensure property owners are fairly compensated for their property interests. Staff recommends that City Council authorize the use of eminent domain for this acquisition to provide a fair and equitable process that will allow the City to meet Project goals and construction deadlines. H. This action will not authorize any new funding for the Project. The action will authorize acquisition of the identified parcel by means of eminent domain. The total fund amount projected for this Project is $726,564 composed of funds appropriated with prior actions. The development contribution PIL is subject to APP program transfers that were completed with prior appropriation. I. It is necessary for the City to acquire the Property for the purpose of constructing the Project. The acquisition of the Property may, by law, be accomplished through proceedings of eminent domain. J. The acquisition of the Property and prompt possession of the Property is desirable and necessary for public use for the construction of the Project, is in the City’s and public’s best interests, and enhances public health, safety, and welfare because it will allow for the construction of needed public infrastructure within the City. In light of the foregoing Recitals, which the Council hereby makes and adopts as determinations and findings, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. The City Council finds and hereby determines that is it necessary in the public interest and for the public health, safety and welfare that the City acquire the Property to be used for the purpose of completing the construction of Cordova Road north of Duff Drive. Section 2. The City Council hereby authorizes the City Attorney and other appropriate officials of the City to acquire the Property for the City by eminent domain proceedings. Section 3. The City Council finds that if acquisition by eminent domain of the Property is commenced, immediate possession is necessary for the public’s health, safety, and welfare. Page 319 Item 18. Docusign Envelope ID: 95BE294C-C1D2-4710-A0D4-D660297519EC -3- Introduced, considered favorably on first reading on August 19, 2025, and approved on second reading for final passage on September 2, 2025. ______________________________ Mayor ATTEST: ______________________________ City Clerk Effective Date: September 12, 2025 Approving Attorney: Heather N. Jarvis Exhibit: Exhibit A - Description of Real Property Page 320 Item 18. Docusign Envelope ID: 95BE294C-C1D2-4710-A0D4-D660297519EC