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HomeMy WebLinkAbout085 - 07/01/2014 - AMENDING ARTICLE IV, DIVISION 2 OF CHAPTER 23 OF THE CITY CODE REGARDING DISPOSITION OF REAL PROPERT ORDINANCE NO. 085, 2014 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING ARTICLE IV, DIVISION 2 OF CHAPTER 23 OF THE CODE OF THE CITY OF FORT COLLINS REGARDING DISPOSITION OF REAL PROPERTY WHEREAS, under Article IV of Chapter 23 of the City Code, all leases of City property must be approved by the City Council by ordinance, except that leases for two years or less of property that is not part of the City's utility systems can be approved by resolution, and the City Manager has authority to enter into leases for property at the Fort Collins-Loveland Airport without prior City Council approval; and WHEREAS, in the interest of efficiently managing the administrative affairs of the City, the City Manager has recommended revising the existing Section 23-114 of the City Code regarding leases of City property to permit the City Manager to sign additional short-term leases of City property without formal action by the City Council; and WHEREAS, the proposed amendments would permit the City Manager to enter into leases of City property for a term of five years or less, although this time limit would not apply to Airport leases, as the City Code currently permits the City Manager to authorize Airport leases regardless of term length; and WHEREAS, the City Manager would be required to notify the City Council of all leases that he or she approves pursuant to this authority, just as the City Manager is currently required to do when granting a permit or license to enter on real property under Section 23-116 of the City Code; and WHEREAS, the proposed amendments would also change the current limit on leases that the City Council can approve by resolution rather than by ordinance from a lease term of two years or less to a lease term of twenty years or less; and WHEREAS, the proposed amendments would include a new section establishing guidelines for either the City Council or City Manager, as appropriate, to use to make a finding that a public purpose is being served when City property is leased, sold or otherwise,conveyed for less than fair market value; and WHEREAS, in the process of drafting the proposed amendments City staff and the City Attorney identified additional changes that could be made to Division 2 of Article IV of Chapter 23 to improve its organization and clarity; and WHEREAS, such changes include: putting definitions currently located in different sections of Division 2 into one Code section and moving that section to the beginning of the Division, simplifying the language in Section 23-114, and deleting a subsection of 23-114 that was determined to no longer be necessary in light of the other proposed changes; and - 1 - WHEREAS, the City Council has determined that the proposed changes are in the best interests of the citizens of the City. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL FO THE CITY OF FORT COLLINS as follows: Section 1. That Article IV, Division 2 of Chapter 23 of the Code of the City of Fort Collins is hereby amended by the addition of a new Section 23-1 10 to read as follows: Sec. 23-110. Definitions. The following words and phrases, when used in this Division, shall have the meanings ascribed to them in this Section: Lease shall mean a contract by which the City grants to another the right to possess, use and enjoy any real property owned by the City for ten (10) days or longer, in exchange for the payment of rent in a stipulated amount. Real property shall mean lands, lands under water, buildings, permanent structures and any and all easements, incorporeal hereditaments and every estate and right therein, legal and equitable, including terms for years and liens by way of judgment, mortgage or otherwise. Section 2. That existing Section 23-112 of the Code of the City of Fort Collins, "Real property defined," is hereby deleted in its entirety. Section 3. That existing Section 23-113 of the Code of the City of Fort Collins, "Form of deeds; signature and seal," is hereby renumbered as Section 23-112. Section 4. That existing Section 23-114 of the Code of the City of Fort Collins is hereby repealed and reenacted as Section 23-1 13 to read in its entirety as follows: See. 23-113. Leases. (a) Interests in real property owned in the name of the City that are part of the City's water or electric utility system may be leased only in the manner provided in Section 23- Ill. (b) Interests in other real property owned in the name of the City may be leased subject to the following provisions: (1) The City Council may lease any and all interests in real property owned in the name of the City if the City Council first finds that the lease is in the best interests of the City. Such leases may be approved by the City Council by resolution unless the proposed term of the lease exceeds twenty (20) years, in which event the lease must be approved by the City Council by ordinance. - 2 - (2) The City Manager may lease, for a definite term of five (5) years or less, any interests in real property owned in the name of the City. This five (5) year limitation shall not apply to the lease of real property located at the Fort Collins- Loveland Municipal Airport. (3) Any lease of an interest in real property owned in the naive of the City and located at the Fort Collins-Loveland Municipal Airport shall be subject to the following requirements: a. The use to which the real property is to be put under the lease is an aeronautical or general aviation use or a use which directly augments an aeronautical or general aviation use; b. The use to which the real property is to be put is permitted by any land use or zoning codes or regulations applicable to the real property; and C. The lease and the use to which the real property is to be put are in compliance with all Federal Aviation Administration and state laws, regulations, and agreements applicable to the property to be leased. (4) The City Manager shall promptly notify the City Council of the execution of any lease agreement entered into by the City pursuant to Subsection (b)(2). (5) Nothing in this Section shall preclude the City Manager from referring any proposed lease to the City Council for a determination as to whether the lease would be in the best interests of the City, which determination may be made by the City Council by resolution. Section 5. That Article IV, Division 2 of Chapter 23 of the Code of the City of Fort Collins is hereby amended by the addition of a new Section 23-114 to read as follows: Sec. 23-114. Disposition of property interests for less than fair market value. Any sale, lease or other conveyance of property interests approved under Section 23- I I I(a) or (b) or Section 23-113 must be for an amount equal to or greater than the fair market value of such interest unless the City Council or City Manager, as applicable, determines that such sale or lease serves a bona fide public purpose because: (1) The use to which the property will be put promotes health, safety, or general welfare and benefits a significant segment of the citizens of Fort Collins; (2) The use to which the property will be put supports one or more of the City Council's goals, adopted policies, projects or plans; (3) The financial support provided by the City through the below-market disposition of the property will be leveraged with other funding or assistance; (4) The sale or lease will not result in any direct financial benefit to any private person or entity, except to the extent such benefit is only an incidental consequence and is not substantial relative to the public purpose being served; and - (5) Selling or leasing the property for less than fair market rent will not interfere with current City projects or work programs, hinder workload schedules, or divert resources needed for primary City functions or responsibilities. Introduced, considered favorably on first reading, and ordered published this 3rd day of June, A.D. 2014, and to be presented for final passage on the 1 st day of July, A.D. 2014. RTC Mayor ATTEST: �: SANS COLORw" City Clerk Passed and adopted on final reading on the 1 st day of July, A.D. 2014. yor ATTEST: �y OF FOar City Clerk O° •.. . �ORFUpy - 4 -