HomeMy WebLinkAbout187 - 01/21/2003 - AUTHORIZING THE MODIFICATION OF THE MEADOW SPRINGS RANCH GRAZING LEASE WITH NATURAL FORT GRAZING ASS t '
ORDINANCE NO. 1879 2002
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE MODIFICATION OF
THE MEADOW SPRINGS RANCH GRAZING LEASE
WITH NATURAL FORT GRAZING ASSOCIATION, INC.
WHEREAS,in late 1990,the City purchased that certain real property commonly known as
the Meadow Springs Ranch(the "Property"); and
WHEREAS, since purchasing the Property, the City has leased it each year for livestock
grazing purposes; and
WHEREAS,in October,2000,City staff issued a request for proposals to lease the Property
for livestock grazing purposes for a term of approximately ten(10)years, and in response,the City
received two proposals which were reviewed,resulting in the proposal of Natural Fort Grazing,Ltd.
("NFG")being selected; and
WHEREAS,City staff and NFG representatives have negotiated a Grazing Lease Agreement
(the "Lease"),which Lease is on file in the office of the City Clerk; and
WHEREAS,the original term of the Lease is for nine years,seven months and sixteen days;
and
WHEREAS, in January 2001, the City Council adopted Ordinance No. 192, 2000,
authorizing the execution of the Lease; and
WHEREAS, due to changes in the tax treatment of private leases of public property,NFG
has requested that the City agree to a modification of the Lease so as to provide for a series of one-
year terms, rather than one term for the entire lease period; and
WHEREAS,City staff has prepared an amendment to the Lease that modifies the term of the
Lease retroactively to provide for an initial one-year term that will automatically renew for
successive,annual terms through the end of the original lease term,unless either party provides 90-
days advance written notice of its intent not to renew; and
WHEREAS, staff has determined that there will be no detrimental effect on the City as the
lessor in making such a change; and
WHEREAS, Sections 23-111 and 23-114 of the Code of the City of Fort Collins authorize
the City Council to lease, for a definite term of more than two years, any and all interest in real
property owned by the City which is part of a City utility system, provided the City Council first
finds,by ordinance,that the lease is in the best interests of the City,that the lease will not materially
impair the viability of the City's affected utility system as a whole, and that the lease will be for the
benefit of the citizens of the City.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1. That the lease of the Property to NFG pursuant to the terms of the Lease,
modified as described in this Ordinance,is in the best interests of the City,that the Lease as modified
will not materially impair the viability of the City's Wastewater utility system as a whole, and that
the Lease as modified will be for the benefit of the citizens of the City.
Section 2. The Mayor is hereby authorized to enter into an amendment on behalf of the
City modifying the Lease so as to provide for a series of annual terms for the remainder of the
original Lease term, together with such other terms and conditions that the City Manager, in
consultation with the City Attorney,determines to be necessary or appropriate to protect the interests
of the City.
Introduced and considered favorably on first reading and ordered published this 17th day of
December, A.D. 2002, and to be presented for final passage on the 21 st day of January,A.D. 2003.
Mayor ,
ATTEST:
City Clerk
Passed and adopted on final reading this 21st day of January, A.D. 2003.
Acting Ma or
ATTEST:
City Clerk