HomeMy WebLinkAbout183 - 01/17/2012 - AUTHORIZING THE LEASE OF CITY-OWNED PROPERTY AT 430 NORTH COLLEGE AVENUE AND 100 WILLOW STREET TO TH ORDINANCE NO. 183, 2011 .
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE LEASE OF CITY-OWNED PROPERTY AT 430 NORTH COLLEGE
AVENUE AND 100 WILLOW STREET TO THE COLORADO STATE UNIVERSITY
RESEARCH FOUNDATION
WHEREAS,the City is the owner of the property located at 430 North College Avenue,Fort
Collins, Colorado, known as the Old Power Plant (the"City Property"); and
WHEREAS, the City Property was previously used by the City's electric utility but is no
longer needed, except incidentally, for utility purposes; and
WHEREAS, on February 15, 1994, pursuant to Ordinance No. 11, 1994, the City and
Colorado State University (CSU) entered into a lease agreement for a portion of the City Property
for up to 25 years (the "1994 Lease"); and
WHEREAS,on January 13,2005,pursuant to Ordinance No. 123,2004,the 1994 Lease was
modified by a First Amendment to Lease Agreement, which added a five-year renewal term and
increased the termination notice period to five years (the "2005 Amendment"); and
WHEREAS,the 1994 Lease authorized CSU to use the City Property only for laboratory and
research purposes focused upon increasing the efficiency of the internal combustion engine, and
related office, administrative, outreach, extension and instructional uses; and
WHEREAS, since 1994 CSU has been using the City Property for its Engines and Energy .
Conversion Laboratory,but this program has grown in size and expanded in purpose over the years
and the Colorado State University Research Foundation (CSURF) wishes to build an additional
building on the City Property to house labs, offices and subtenant incubator companies (the "New
Building"); and
WHEREAS, through several years of discussion and .negotiation, City staff and
representatives from CSU and CSURF have drafted a new lease agreement,a copy of which,dated
December 6, 2011, is on file in the office of the City Clerk and available for review (the "Lease
Agreement"); and.
WHEREAS,under the Lease Agreement the City would lease to CSURF a portion of the City
Property as described on Exhibit "A", attached and incorporated herein by reference (the "Main
Parcel"),as well as a portion of the adjacent City-owned property known as Lot 1,Northside Aztlan
Community Center,located in the 100 block of Willow Street,Fort Collins,Colorado,as described
on Exhibit `B", attached and incorporated herein by reference (the "Parking Parcel"); the Main
Parcel and Parking Parcel are collectively referred to as the "Leased Premises"; and
WHEREAS, upon execution of the Lease Agreement CSU would relinquish all right, title
and interest in and to the City Property under the 1994 Lease and the 2005 Amendment; and
WHEREAS, key terms of the proposed Lease Agreement include the following:
• The initial term of the Lease would be 40 years with two 20-year extensions at
CSURF's sole option if CSURF builds the New Building. If CSURF does not build
the New Building within eight years,the initial term of the Lease would be ten years
with one five-year extension in CSURF's sole option and two additional ten-year
extensions with the City's consent.
• CSURF would pay rent in the amount of$1,000 for the initial term of the Lease and
$1,000 for each extension unless it does not build the New Building, in which case
rent would be $1,000 for the first ten or fifteen years of the Lease and$500 for each
ten-year extension.
• CSURF would be permitted to build the New Building and related improvements on
the Main Parcel and parking improvements on the Parking Parcel, subject to the
City's approval of the plans for the improvements.
• Upon termination of the Lease the improvements constructed by CSURF would
become the property of the City unless CSURF terminates the Lease because of a
default by the City, in which case the City would compensate CSURF for the value
of its improvements.
• CSURF would be permitted to assign the Lease,or sublease the Leased Premises,to
CSU and to sublease portions of the Leased Premises to third parties whose activities
on the Leased Premises must be consistent with the purposes of the Lease; and
WHEREAS, leasing the Leased Premises to CSURF for the uses described in the Lease
Agreement serves the valuable public purpose of developing and utilizing energy solutions; and
WHEREAS,leasing the Leased Premises to CSURF further benefits the City by reducing the
City's costs for maintenance and utilities on the City Property; and
WHEREAS, under Section 23-111 of the City Code the City Council is authorized to sell,
convey or otherwise dispose of any and all interests in real property owned in the name of the City
provided that the City.Council first finds, by ordinance, that such sale or other disposition is in the
best interests of the City and,with respect to real property that is a part of the City's water or utility
systems, that such disposition will not materially impair the viability of the system as a whole and
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 City Council hereby finds that leasing the Leased Premises to CSURF
as provided herein serves a valuable public purpose, is in the best interests of the City, will not
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impair the viability of the City's electric utility system as a whole, and will be for the benefit of the
citizens of the City.
Section 2. That the City Manager is hereby authorized to enter into a lease agreement
with CSURF in substantially the form of the Lease Agreement that is on file in the office of the City
Clerk,together with such additional terms and conditions as the City Manager,in consultation with
the City Attorney, determines to be necessary or appropriate to protect the interests of the City or
effectuate the purposes of this Ordinance, including but not limited to any necessary changes to the
legal description of the Leased Premises,as long as such changes do not materially increase the size
or change the character of the Leased Premises.
Section 3. That as part of the Lease Agreement, CSURF is hereby authorized to enter
into subleases for portions of the Leased Premises in accordance with the terms and conditions of
the Lease Agreement.
Introduced, considered favorably on first reading, and ordered published this 20th day of
December,A.D. 2011,and to be presented for final passage on the 17th day of January,A.D. 2012.
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Passed and adopted on final reading on the 17th day of January, A.D. 2012.
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NORTHERN ADDRESS: PHONE:970.221AI+fl
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ExhibitA
DESCRIPTION:
A portion of Lot 3 in Reservation on the Northwest Quarter of Section 12, Township 7
North, Range 69 West of the 6th P.M., lying North and West of Right of Way of the
Fort Collins Development Railway Company, less deed recorded May 3, 1994 at
Reception No. 94038222 being more particularly described as follows;
Considering the West line of Section 12 as bearing South 00°23'57" West and with all
bearings contained herein relative thereto:
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Commencing at the Northwest corner of said Section 12;thence along the West line of
said Section 12, South 00°23'57" West, 482.47 feet; thence departing said. West line,
South 89°36'03" East, 73.47 feet to a point on the East line of said Reception No.
94038222, said point also being the POINT OF BEG1i NING; thence along the
approximate Top of Bank of Cache La Poudre River the following ten(10) courses:
(1) South 68°26'25" East, 27.26 feet;
(2) North 86'52'14" East, 40.22 feet;
(3) South 68'17'47" East, 44.32 feet;
(4) North 82°34'37" East, 118.30 feet;
(5) South 84°24'53" East, 151.12 feet;
(6) South 75°36'07"East, 63.13 feet;
(7) South 68°36'28"East, 42.92 feet;
(8) South 79023'46" East, 50.91 feet;
(9) South 71°20'59" East, 61.83 feet;
(10) South 76°36'43"East, 63.27 feet to a point on the Northwesterly line of
Burlington Northern Railroad Right of Way; thence along said Northwesterly line,
South 57°00'09" West, 776.12 feet to a point on the East line of said Reception
No. 94038222; thence departing said Northwesterly line and along said East line,North
00°34'27" East, 521.48 feet to the POINT OF BEGINNING.
The above described easement contains 4.091 acres (178,190 square feet) more or less
and is subject to all easements and rights-of-way now on record or existing.
December 1, 2011
CNS
Sheet 1 of
POINT OF EXHIBIT A
COMMENCEMENT
NORTHWEST CORNER
S12,T7N,R69W
S89°36'03"E
i 73.47' POINT OF
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f. APPROXIMATE PROPERTY BOUNDARY AND _
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v 27.26' APPROXIMATE TOP
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118.30' 151.12' 42.92' S79°23'46"E
((( NB2.34.37E S84.24'53-E 50.91,
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50' BNRR 393,184 sq.ft
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'/ EASEMENT
IN (PARKING
o I PARCEL LOT 1
Ifn I (NORTHSIDE AZTLAN
410 NORTH I I COMMUNITY CENTER)
- COLLEGE,LLC G 1 361,142 sq.ft.
RECEPTION I 8.297 ac.
No.2003000605 I \` I
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WEST CORNER
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SHEET 2 0 F2
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NORTHERN ADDRESS: - PHONE:970.221.4158 TE:WEBS
200S.CollegeAve Suitetoo WEBS rthernengneenng.com
ENGINEERING FortColins,0080524 FAX:970.221A159
Exhibit B
DESCRIPTION:
All that portion of Lot 1, Northside Aztlan Community Center lying west of the
Burlington Northern Railroad as described at Reception No. 2000032174 being more
practically described as follows;
Considering the North line of Lots 1 and 2,Northside Aztlan Community Center as
bearing North 57°00'09" East and with all bearing contained herein relative thereto:
POINT OF BEGINNING being the Northwest comer of said Lot 1;thence along the
North line of said Lot 1, North 57000'09" East, 261.57 feet to a point on the Westerly
line of Burlington Northern Railroad Easement; thence along said Westerly line along a
non-tangent curve concave to the Southeast having a central angle of32°28'24" with a
radius of794.49 feet and an arc length of 450.29 feet and the chord of which bears
South 16002'1 1" West, 444.29 feet; thence continuing along said Westerly line, South
00°12'O 1" East, 148.00 feet to a point on the Southern line of said Lot 1;thence along
the South line of Lot 1 along a non-tangent curve concave to the South having a central
angle of 12'27 11" with a radius of 400.00 feet and an arc length of 86.94 feet and the
chord of which bears North 61°02'07" West, 86.77 feet to the Southwest comer of said
Lot 1;thence along the Western border of said Lot 1 the following three (3) courses:
(1) North 00045' 15" West, 190.24 feet;
(2) North 89°36'03" West, 20.14 feet;
(3) North 00°23'57" East, 200.17 feet to the POINT OF BEGINNING.
The above described easement contains 1.159 acres (50,474 square feet) more or less
and is subject to all easements and rights-of-way now on record or existing.
November 28, 2011
CNS
Sheet 1 o f2
EXHIBIT B
Cq POUDRE Rt
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OF LOTS 1 8 2
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oo LOT 2
(NORTHSIDE
AZTLANAN
R=794.49' L=450.29' COWIMUNITY
POINT OF / Chord earl CENTER)
Chord Bearing=St6'02'iP4V 393,184 sq.ft.
BEGINNING Chord Length=444.29' 9026 ac
PARKING /
rr /
- N PARCEL
50474 sq.ft. t.uh l
z 1.159 ac.
410 NORTH Ilse
COLLEGE. LLC fj i. /
RECEPTION
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N89 36'03"W
PO 14 STERLv LINE OF
BNRR EASEMENT
LOT 1
300 NORTH I (NORTHSIDE AZTLAN
COLLEGE,LLC COMMUNITY CENTER)
N`R "EPTION'' „Z w 361,142 sq.ft.
C; a I 8.297 ac.
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b I
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R=400.00' L=86.94'
6=12 27'1T'
Chord Bearing=N61.O2Orw
Chord Length=86.77'
<0 rI
SOUTH UNE OF LOT 1
(NCRTHSIDE AZTLA
COMMUNITY CENTER) >_
SHEET OF 2
t00F3 E3 01:=:=:==3� Feet NORTH ( NORTHERN
( INFgT) ENGINEERING
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