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HomeMy WebLinkAbout2025-004-01/21/2025-APPROVING THE FIRST AMENDMENT TO THE DEVELOPMENT AGREEMENT TO SECURE PUBLIC BENEFITS FOR DEVELOPMENTRESOLUTION 2025-004
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROVING THE FIRST AMENDMENT TO THE DEVELOPMENT
AGREEMENT TO SECURE PUBLIC BENEFITS FOR
DEVELOPMENT OF THE MONTAVA PLANNED UNIT
DEVELOPMENT MASTER PLAN
A.Montava is a Planned Unit Development (PUD)established under
Transitional Land Use Code Divisions 2.15 and 4.29 for a section of rural and agricultural
land next to the Anheuser-Busch facility in northeast Fort Collins,modeled after a village-
style development for the wide variety of land uses planned.The development intends to
include a variety of housing,amenities and public spaces.The proposal calls for a
complete,connected community with new neighborhoods,parks,schools,a town center,
urban agriculture,businesses,and transportation connections.
B.On September 25,2018,Council approved the Consolidated Service Plan
for Montava Metropolitan District Nos.1-7 (Service Plan)to govern the Montava Metro
Districts by Resolution 2018-083.Thereafter,on February 18,2020,Council approved
the Montava PUD Master Plan and Montava PUD Overlay by Ordinance No.014,2020,
and the PUD Master Plan Development Agreement by Ordinance No.015,2020,for the
development of approximately 844 acres to be acquired from the Anheuser-Busch
Foundation and an additional 108 acres to be obtained via an exchange with the Poudre
School District.
C.In connection with the approval of the PUD Master Plan,Council approved
by Resolution 2020-007 the Development Agreement to Secure Public Benefits for
Montava Planned Unit Development Master Plan (Public Benefits Agreement,at
Reception No.20220022462)for the purpose of securing the Montava developer’s (the
“Developer”)delivery of certain “Public Benefits”described in the Service Plan as:(I)
large-scale comprehensive master planning;(ii)new urbanism;(iii)agri-urban
development;(iv)zero energy ready homes;(v)non-potable water system;and (vi)
affordable/workforce housing.The Public Benefits Agreement meets both the spirit of the
Metro District Policy and helps the City achieve its strategic objectives.
D.The Public Benefits Agreement at Subsection ll.G.contains a contingency
requiring the closing of the Developer’s purchase from the Anheuser-Busch Foundation
within five (5)years after the Public Benefits Agreement’s effective date of March 25,
2020,and if the closing does not occur before the end of the five (5)years,the
Development Agreement shall automatically terminate and thereafter be of no force or
effect.
E.The Developer has encountered complicated issues in finalizing long-term
solutions for ditch crossings,ditch modifications and stormwater management causing
years of delay and erosion of the original five (5)-year contingency period.
F.The Developer has submitted four (4)development applications for phases
within the PUD Master Plan,one (1)of which must be approved before the Anheuser
Busch Foundation closing.
G.While the Developer continues to pursue resolution,it is also requesting that
the Council grant a two (2)-year extension of the five (5)-year contingency period to allow
additional time to resolve the issues and close on the purchase to prevent a termination
of the Public Benefits Agreement.
H.Under Section ll.H.of the Development Agreement,the City and the
Developer are authorized to amend the Development Agreement without the consent of
the Anheuser-Busch Foundation or the Poudre School District;although,both entities are
advised of this request.
There will not be financial impact on the City for extending the existing
deadline.
J.The City Council finds and determines that the adoption of this resolution
advances the public’s health,safety,and welfare by ultimately facilitating the Developer’s
delivery of the agreed upon Public Benefits.
In light of the foregoing Recitals,which the Council hereby makes and adopts as
determinations and findings,BE IT RESOLVED BY THE COUNCIL OF THE CITY OF
FORT COLLINS:
Section 1.The First Amendment to the Public Benefits Agreement to extend the
contingency period upon the closing of the Developer’s purchase from the Anheuser
Busch Foundation from five (5)years after the effective date of the Public Benefits
Agreement to seven (7)years after the effective date of the Public Benefits Agreement is
hereby approved by the City Council.
Section 2.The Mayor is authorized to execute the First Amendment to the
Public Benefits Agreement on behalf of the City in substantially the same form attached
to this resolution as Exhibit A.
Section 3.A copy of this resolution with all attachments shall be recorded in the
Office of the Larimer County Clerk and Recorder promptly after the effective date of this
resolution with all recording fees paid by the Developer.
Passed and adopted on January 21,2025.
,JL
ATTEST:
1’
itYCIf
Effective Date:January 21,2025
Approving Attorney:Heather N.Jarvis
EXHIBITATO RESOLUTION 2025-004
FIRST AMENDMENT TO
DEVELOPMENT AGREEMENT TO
SECURE PUBLIC BENEFITS FOR
MONTAVA PLANNED UNIT DEVELOPMENT MASTER PLAN
THIS FIRST AMENDMENT TO DEVELOPMENT AGREEMENT TO SECURE
PUBLIC BENEFITS FOR MONTAVA PLANNED UNIT DEVELOPMENT MASTER PLAN
(the “First Amendment”)is made and entered into this day of ,2024,by and
between the CITY OF FORT COLLINS,COLORADO,a municipal corporation of the State of
Colorado (“City”);and MONTAVA PARTNERS,LLC,a Colorado limited liability company
(“Montava”),as successor to HF2M,INC.,a Texas corporation (“HF2M”).City and Montava may
be referred to individually,each as a “Party,”or collectively,the “Parties.”
RECITALS
WHEREAS,City and HF2M entered into the Development Agreement to Secure Public
Benefits for Montava Planned Unit Development Master Plan on December 11,2020 (the
“Original Agreement”),together with U.S.BANK NATIONAL ASSOCIATION,as successor in
interest to U.S.BANK,AS CORPORATE TRUSTEE OF THE ANHEUSER-BUSCH
FOUNDATION,a Missouri charitable trust (“Foundation”)and POUDRE SCHOOL DISTRICT
T-l,a political subdivision of the State of Colorado (“School District”);the Foundation and School
District being collectively referred to herein as “Owners.”The Effective Date of the Original
Agreement was March 25,2020;
WHEREAS,HF2M assigned all of its obligations,right,title,interest in and to the Original
Agreement to Montava effective March 8,2021;
WHEREAS,the closing of the sale and conveyance of the Foundation Property to Montava
has been delayed by unforeseen complications thus creating a risk that the Foundation Contingency
in Subsection H.G of the Original Agreement cannot be satisfied within the time frame originally
envisioned;
WHEREAS,the Parties wish to enter into this First Amendment for the purpose of
amending the Foundation Contingency to extend by two (2)years the time period within which
the fee-title conveyance of the Foundation Property to Montava must occur;and
WHEREAS,the Original Agreement may be amended only by the City and Montava
without the consent of the Owners;Montava has not granted the right to consent to this First
Amendment to any successor or assigns.
First Amend PBA
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32376472.1
EXHIBITATO RESOLUTION 2025-004
NOW,THEREFORE,in consideration of the mutual promises,covenants and agreements
of the Parties contained herein,and other good and valuable consideration,the receipt and
adequacy of which are hereby acknowledged,the Parties agree as follows.
AMENDMENT TO ORIGINAL AGREEMENT
1.Incorporation of Recitals.The foregoing Recitals are incorporated herein as
material terms.
2.Capitalized Words and Terms.Capitalized words and terms not otherwise defined
in this First Amendment shall retain the meaning given to them in the Original Agreement or in
the Service Plan.
3.Foundation Contingency.The Parties acknowledge that the Original Agreement
provides that should the fee-title conveyance of the Foundation Property to Montava not occur
within five (5)years after the Effective Date,or by March 25,2025,the Original Agreement shall
automatically terminate,and the Parties agree that it is reasonable and in the best interests of the
general welfare of the City to extend the deadline for satisfaction of the Foundation Contingency
by an additional two (2)years.
4.Amendment of Foundation Contingency.The Parties therefore agree to amend
Subsection II.G of the Original Agreement to read as follows:
Foundation Contineencv.The Parties hereto expressly agree that this Agreement
is contingent upon the Foundation’s fee-title conveyance of record of the
Foundation Property to the Developer pursuant to the terms of the Foundation
Agreement within seven (7)years after the Effective Date.Because the legal
description of the Foundation Property in Exhibit A has not been surveyed,it may
need to be further verified by survey before the Foundation conveys the Foundation
Property to the Developer;therefore,the Parties acknowledge and agree that the
exact number of acres and boundaries of the Foundation Property to be conveyed
under the Foundation Agreement may change and any such reasonable changes
shall not affect the satisfaction of this contingency so long as substantially all of the
Foundation Property currently described in Exhibit A is conveyed by the
Foundation to the Developer.If such closing does not occur by such date,this
Agreement shall thereupon automatically terminate and thereafter be of no force or
effect,and the Parties hereto shall be released from all obligations hereunder.
5.Amendment ofNotices.The Parties agree to amend Subsection II.P.of the Original
Agreement to replace the Developer’s contact information to read as follows:
If to Developer:Montava Partners,LLC
ATfN:Max Moss
First Amend PBA
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32376472.1
EXHIBIT A TO RESOLUTION 2025-004
430 N.College Ave.Suite 410
Fort Collins,CO 80524
Email:max@montava.com
With copies to:Brownstein Hyatt Farber Schreck,LLP
AnN:Claire N.L.Havelda
675 15th Street,Suite 2900
Denver,CO 80202
Email:chavelda@bhfs.com
6.Original Agreement.The Original Agreement remains in full force and effect,as
amended by this First Amendment.
7.First Amendment Effective Date:This First Amendment shall be effective upon
the adoption of a resolution of the City Council approving the First Amendment.
8.Counteroarts.This First Amendment may be executed in counterparts,each of
which shall be deemed to be an original and all of which taken together shall constitute one and
the same amendment.
9.Recordation.The City shall record this First Amendment with the Larimer County
Clerk and Recorder,and Montava shall pay the cost of the same.
IN WITNESS WHEREOF,the Parties agree to the terms and conditions of this First
Amendment described above effective as of the First Amendment Effective Date.
CITY:Cfl’Y OF FORT COLLINS,COLORADO,
a Municipal Corporation
By:____________
Jeni Arndt,Mayor
Date:
APPROVED AS TO FORM:
Heather N.Jarvis,Assistant City Attorney
AflEST:
Delynn Coldiron,City Clerk
First Amend PBA
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32376472.1
EXHIBIT A TO RESOLUTION 2025-004
MONTAVA:MONTAVA PARTNERS,LLC,a Colorado
Limited liability company
By:CAMERON INVESTMENTS L.C.,an
Idaho limited liability company,Manager
By:_________________
Richard P.Clark,Manager
Date:
ATtEST:
Printed name,Title
First Amend PBA
Draft 01-14-25
32376472.1