HomeMy WebLinkAboutMemo - Read Before Packet - 2/5/2013F6rt of
MEMORANDUM
DATE: February 5, 2013
TO: Mayor and City Councilmembers
THRU: Darin Atteberry, City Manager
Wendy Williams, Assistant City Manager .-L5 �
Ken Mannon, Director of Operation Services
FROM: Helen Matson, Real Estate Services Managerlu/y-
OPERATIONS SERVICES
REAL ESTATE SERVICES
P.O. Box 580
300 Laporte Avenue, Bldg. B
Fort Collins, CO 80522-0580
970,416.2276
970,416.2209 — fax
@fcgov.com
RE: Item #19 — First Reading of Ordinance No. 016, 2013, Authorizing the
Lease of City -Owned Property at 6916 South College Avenue for up to Five
Years.
Questions from Leadership Team Meeting: (a) What is the market rate for renting or leasing
this 17 acre parcel; (b) 1f the City is leasing below market rate, what is the rationale for doing
SO.
This property is leased as a dryland farming lease and does not allow the use of City -owned
water on the property. When comparing the cost per acre for this property with other dryland
properties that the City leases out, this property is slightly higher. This property is
approximately $32 per acre and the other City -owned dryland property leases at S20 per acre.
The most current survey results conducted by Colorado State University Extension, "Custom
Rates for Colorado Farms and Ranches in 201 I", indicates that for small grain (dryland) activity
in the Northern region of Colorado, the market rate is between $22.00 and $35.00 per acre.
Therefore, leasing this property at $32 per acre would be considered in the fair market range.