HomeMy WebLinkAbout142 - 12/04/2018 - AUTHORIZING THE LEASE OF CITY-OWNED PROPERTY AT 424 PINE STREET FOR UP TO FORTY YEARS ORDINANCE NO. 142, 2018
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE LEASE OF CITY=OWNED PROPERTY
AT 424 PINE STREET FOR UP TO FORTY YEARS
WHEREAS,the City of Fort Collins is the owner of the property located at 424 Pine Street,
Fort Collins, Larimer County, Colorado (the "Leased Premises"); and
WHEREAS, in 1983 the City Council approved Resolution 83-218 authorizing the lease
of the Leased Premises to Larimer Community Services Corporation ("LCSC") for the purpose of
building a human services facility on the Leased Premises; and
WHEREAS, in April 1985, the City and LCSC entered into a Lease Agreement (the"1985
Lease") that permitted construction of a building on the Leased Premises, but stipulated that upon
termination of the Lease Agreement, the building would become the property of the City; and
WHEREAS, in 1994, with the City's consent, United Way of Larimer County, Inc.
("United Way") assumed LCSC's rights under the 1985 Lease and became owner of the building;
and
WHEREAS,in.2008 the City entered into a new lease with United Way,leasing the Leased
Premises for human services purposes to benefit the community at large with an initial term of
twenty years (the "2008 Lease"), and
WHEREAS, United Way currently subleases a portion of the Leased Premises to the
United Day Care Center, doing business as Teaching Tree Early Childhood Leaming Center
("Teaching Tree"), which provides affordable early childhood and education programs for the
community at large; and
WHEREAS, United Way and Teaching Tree desire that Teaching Tree would become the
primary lessee and occupant of the Leased Premises, and the parties intend that United Way will
occupy a portion of the Leased Premises under a sublease with Teaching Tree; and
WHEREAS, concurrent with execution of a proposed new lease agreement between the
City and Teaching Tree,United Way would terminate the 2008 Lease,convey the existing building
and all other related fixtures to the City, and Teaching Tree and United Way would execute a
sublease in a form acceptable to the City; and
WHEREAS;the proposed lease terms include an initial twenty-year lease term in exchange
for a nominal rent in the amount of $600.00 per year and compliance with certain terms and
conditions including restrictions on the use of the Leased Premises and an obligation to maintain
the Leased Premises; and
WHEREAS, the proposed lease agreement may be extended at the City's discretion for
four additional five-year terms for a maximum tenancy of forty years; and
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WHEREAS, under Section 23-113(b) of the Code of the City of Fort Collins, the City
Council is authorized to lease any and all interests in real Leased Premises owned in the name of
the City, provided that the City Council first finds that the lease is in the best interests of the City;
WHEREAS, if the proposed term of the lease exceeds twenty years, the lease must be
approved by the City Council by ordinance; and
WHEREAS, under Section 23-114 of the City Code, any sale or lease of City property
interests must be for an amount equal to or greater than the fair market value of such interest unless
the City Council determines that such sale or lease serves a bona fide public purpose, based on the
five factors listed in Section 23-114; and
WHEREAS, staff believes that leasing the Leased Premises to Teaching Tree for less than
fair market value serves a bona fide public purpose because:
(1) The use to which the Leased Premises will be put promotes the health, safety, or
general welfare and benefits a significant segment of the citizens of Fort Collins by
providing affordable early childhood and education programs for the community at
large;
(2) The proposed lease supports Goal C.2 of the Fort Collins Social Sustainability
Strategic Plan, which promotes the continuing support of childcare and early
childhood education; and
(3) The use to which the Leased Premises will be put supports Goal C.3 of the Fort
Collins Social Sustainability Strategic Plan, which promotes programs and
initiatives providing residents with affordable, quality caregiving services;
(4) The financial support provided by the City through the below-market lease of the
Leased Premises will be leveraged with other funding or assistance;
(5) The 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
(6) Leasing the Leased Premises for less than fair market value will not interfere with
current City projects or work programs, hinder workload schedules or divert
resources needed for primary City functions or responsibilities.
NOW,THEREFORE,BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1. That the City Council hereby makes and adopts the determinations and
findings contained in the recitals set forth above.
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Section 2. That the City Council hereby finds that leasing the Leased Premises at 424
Pine Street under the terms listed above is in the best interests of the City.
Section 3. That the City Council further finds that such lease for less than fair market
value serves a bona fide public purpose for the reasons stated in the recitals above.
Section 4. That the City Manager is hereby authorized to execute a negotiated lease
agreement consistent with the terms of this Ordinance, together with such additional terms and
conditions consistent with the terms of this Ordinance, as the City Manager, in consultation with
the City Attorney; determines to be necessary and appropriate to protect the interests of the City,
including 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.
Introduced, considered favorably on first reading, and ordered published this 20th day of
November, A.D. 2018, and to be presented for final passage on the 4th day of December, A.D.
2018.
Mayor
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Passed and adopted on final reading on the 4th day of December, A.D. 2018.
Mayor
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