HomeMy WebLinkAbout048 - 05/20/2008 - AUTHORIZING THE LEASE OF A PORTION OF RUNNING DEER NATURAL AREA TO HAGEMAN EARTH CYCLE, INC. ORDINANCE NO. 048, 2008
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE LEASE OF A PORTION
OF RUNNING DEER NATURAL AREA
TO 14AGEMAN EARTH CYCLE, INC.
WHEREAS, in 1998 through 2000, the City of Fort Collins purchased certain land
known as Running Deer Natural Area(the "Natural Area") for its Natural Areas program; and
WHEREAS, a portion of the Natural Area has previously been occupied and used by
Hageman Earth Cycle, Inc. ("Hageman") for the deposit and storage of tree limbs, leaves, and
other yard waste and organic materials for composting, mulching and other reuse; and
WHEREAS, the City has, in the acquisition of natural areas, established a practice of
working with pre-existing users and tenants of acquired property in transitioning the properties
to public natural area ownership; and
WHEREAS, pursuant to this practice and to City Council's authorization in Ordinance
No. 85, 2001, the City previously leased to Hageman that portion of the Natural Area shown on
Exhibit "A" (the "Lease Area"), in order to continue its use of that property for the above-
referenced purposes; and
WHEREAS, by adoption of Ordinance No, 48, 2006, the City later extended the lease to
Hageman of the Lease Area for an additional two-year period; and
WHEREAS, in leasing the Lease Area to Hageman, the initial lease term of five years
and the extension of an additional two years was intended to allow sufficient time for Hageman
to transition its operations to a new location; and
WHEREAS, Hageman has not relocated its operations as anticipated, and has requested
an additional one-year lease with the option to extend the lease for nine one-year terms; and
WHEREAS, City staff has negotiated with Hageman a proposed lease agreement similar
to the existing lease agreement but with several additional terms and conditions designed to
ensure that no adverse environmental impact occurs, to protect ground water in the area, and to
prevent the movement of soil and water from the Lease Area; and
WHEREAS, the lease agreement negotiated with Hageman and containing such
provisions, dated May 14, 2008, is on file in the Office of the City Clerk and available for public
inspection (the "Lease Agreement"); and
WHEREAS the Lease Agreement establishes an initial one-year term with nine possible
one-year extensions, subject to approval by the City, for a monthly rental amount of$1,540 for
the initial term; and
WHEREAS, the Natural Areas program has a limited annual budget for restoration of
properties and the restoration of the Lease Area is not a high priority among the properties to be
restored; and
WHEREAS, the interim use of the Lease Area as described herein, in exchange for
payment of the required monthly rent and maintenance of the Lease Area by Hageman during
the term of the lease, together with the eventual restoration of the Lease Area will further, rather
than interfere with or impair, the City's long-term intended uses of the Lease Area; and
WHEREAS, City staff has also determined that the lease rate of $1,540 per month is
consistent with the approximate fair market lease rate for comparable property; and
WHEREAS, pursuant to Section 23-114 of the Code of the City of Fort Collins, the
Council is authorized to lease any and all interests in real property owned in the name of the
City, provided that Council first finds that the lease is in the best interests of the City.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. That the lease by the City of the Lease Area to Hageman, under the terms
and conditions set forth herein and in the Lease Agreement, is in the best interests of the City of
Fort Collins.
Section 2. That the City Manager is hereby directed to at least annually review the
status of Hageman's compliance with the terms and conditions of the related regulatory
requirements, as well as the efforts by Hageman to identify and arrange for a relocation site, and
to report the outcome of such review to City Council, which report should include a statement as
to whether the lease is being renewed for an additional year.
Section 3. That the City Manager is hereby authorized to enter into the Lease
Agreementin the form on file in the office of the City Clerk, with any other provisions
determined by the City Manager, in consultation with the City Attorney, to be necessary and
appropriate to protect the interest of the City , including any necessary changes to the legal
description of the Property, as long as such changes do not materially increase the size or change
the character of the leased premises, and is further authorized to extend the term of the same for
the full potential term of ten years, as provided herein.
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Introduced, considered favorably on first reading, and ordered published this 6th day of
May, A.D. 2008, and to be presented for final passage on the day of May, A.D. 2008.
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ATTEST:
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City Clerk
Passed and adopted on final reading on the 20th day of A.D. 2008.
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