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HomeMy WebLinkAbout192 - 01/02/2001 - AUTHORIZING A LIVESTOCK GRAZING LEASE AGREEMENT FOR MEADOW SPRINGS RANCH WITH NATURAL FORT GRAZING, ORDINANCE NO. 192, 2000 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE CITY OF FORT COLLINS TO ENTER INTO A LIVESTOCK GRAZING LEASE AGREEMENT FOR MEADOW SPRINGS RANCH WITH NATURAL FORT GRAZING, LTD. WHEREAS, in late 1990, the City of Fort Collins (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 term of the Lease is for nine years, seven months and sixteen days; and WHEREAS, City staff has advised NFG representatives that the City will not enter into the Lease unless the shareholders of NFG individually guarantee NFG's monetary and performance obligation under the Lease by entering into a guarantee agreement in a form acceptable to the City Manager; 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 is in the best interests of the City, that the Lease will not materially impair the viability of the City's Wastewater utility system as a whole, and that the Lease will be for the benefit of the citizens of the City. Section 2. That the Lease is hereby approved by the Council, conditioned upon the shareholders of NFG providing and executing to the City a written guarantee, in a form acceptable to the City Manager, individually guaranteeing NFG's monetary and performance obligations under the Lease. Section 3. Provided that the shareholders of NFG provide to the City the written guarantee described in Section 2 above, the Mayor is hereby authorized to enter into the Lease on behalf of the City. Introduced and considered favorably on first reading and ordered published this 19th day of December, A.D. 2000, and to be presented for final passage on the 2nd y of January, A.D. 2001. Mayor ATTEST: City Clerk Passed and adopted on final reading this 2nd day of January, A.D. 2001. Mayor ATTEST: 2 City Clerk