HomeMy WebLinkAbout041 - 04/16/1996 - AUTHORIZING THE SALE OF A PORTION OF THE PROVINCETOWNE SID PROPERTY TO PRIDEMARK DEVELOPMENT COMPANY ORDINANCE NO. 41, 1996
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE SALE OF A PORTION OF THE PROVINCETOWNE
SID PROPERTY TO PRIDEMARK DEVELOPMENT COMPANY,L.L.0
WITH AN AFFORDABLE HOUSING COMPONENT
WHEREAS, in 1984,the Council of the City of Fort Collins ("the Council") authorized the
creation of the Provincetowne Portner Special Improvement District#81 ("Provincetowne SID")for
the purpose of acquiring,constructing and installing of improvements within the Provincetowne SID;
and
WHEREAS, in 1985, the Council authorized the creation of the Fort Collins South Lemay
Avenue Special Improvement District #86 ("the Lemay SID") also for the purpose of acquiring,
constructing and installing improvements within the Lemay SID; and
WHEREAS,located within the Provincetowne SID and the Lemay SID is approximately 170
acres of land which constitutes a portion of the real property known as the Provincetowne Property
which is located south of Trilby Road, west of Lemay Avenue, north of County Road 32, and east
of College Avenue, and which is within Section 13 of Township 6 North, Range 69 West of the
Sixth P.M. ("the Property"); and
WHEREAS, the owner of the Property failed to pay the special improvements due on the
Property; and
WHEREAS, in accordance with Section 22-97 of the Code of the City of Fort Collins, the
Property was advertised and sold by the Larimer County Treasurer at a 1990 tax sale and a Tax
Certificate of Purchase was issued to the City; and
WHEREAS, the City subsequently obtained a Treasurer's Deed to the Property; and
WHEREAS, Section 22-97(d) of the Code provides that, if the City is the owner of the
Property acquired in satisfaction of discharge of liens represented by Certificates of Purchase, it may
sell such property for the best price obtainable at public sale or auction or by sealed bids or by such
other method of sale which may be approved by the City Council; and
WHEREAS, the City has received an offer from the PrideMark Development Company,
L.L.C. ("PrideMarlC), to purchase the Property for a total purchase price of One Million Eight
Hundred Thousand Dollars ($1,800,000) to be paid over five years as follows: (1) $300,000 down
payment, (2) $300,000 installment payment due one year after the date of closing, and (3) eight
installment payments of$192,935.34 due semi-annually thereafter; and
WHEREAS,the City and PrideMark have entered into an Agreement of Purchase and Sale
of Real Property dated April 2, 1996 ("the Agreement") setting forth PrideMark's offer to purchase
the Property for the total purchase price of One Million Eight Thousand Dollars ($1,800,000), with
the purchase contingent upon the Council approving the Agreement by an ordinance adopted by
Council on second reading on or before April 16, 1996; and
WHEREAS,the Agreement also provides that PrideMark will obligate itself to develop the
Property as a demonstration project in which at least thirty percent(30%) of all residential units built
in the development will be affordable housing units; and
WHEREAS,the City and PrideMark have entered into a"First Addendum to Agreement of
Purchase and Sale of Real Property" dated April 12, 1996 ("the First Addendum") which amends
the Agreement to provide that the City may elect to restructure the transaction described in the
Agreement from a straight purchase of all the Property by PrideMark to an agreement granting to
PrideMark an option to purchase all or any part of the Property over a five (5) year period upon
financial terms and conditions substantially similar to those described above; and
WHEREAS, it may be necessary for the City to restructure the transaction described in the
Agreement as an option in order to preserve the tax-free character of the bonds issued for the
Provincetowne SID and the Lemay SID; and
WHEREAS, under Section 23-111(a) of the Code, the Council is authorized to sell real
property owned in the name of the City,provided it first finds the sale is in the best interest of the
City; and
WHEREAS, Section 22-97(e)of the Code describes the manner in which the proceeds of the
sale of real properties should be allocated when real property is acquired through the foreclosure of
a special assessment lien is sold.
NOW, THEREFORE,BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS, as follows:
Section 1. That the sale of the Property to PrideMark pursuant to the terms of the
Agreement and the First Addendum is in the best interests of the City.
Section 2. That the Agreement and the First Addendum are hereby approved.
Section 3. That the proceeds derived by the City from the sale of the Property under the
Agreement and the First Addendum shall be allocated according to the provisions of Section 22-
97(e) of the Code.
Section 4. That the Mayor be, and hereby is, authorized to execute such instruments of
conveyance and other documents as are necessary for the City to sell and convey the Property to
PrideMark pursuant to the terms and conditions of the Agreement, the First Addendum, and any
future addenda entered into by the City Manager as provided in Section 5. below.
Section 5. That the City Manager be, and hereby is, authorized is to execute future
addenda to the Agreement and the First Addendum to amend any of their provisions if such
amendment is, in the judgment of the City Manager, reasonably necessary to consummate the sale
of the Property in accordance with the terms and conditions contained herein,preserve the tax-free
character of the bonds issued for the Provincetowne SID and the Lemay SID, or to facilitate the
development of the Property as a demonstration project in which at least thirty percent (30%) of all
residential units built in the development will be affordable housing.
Introduced, considered favorably on first reading, and ord published this_�v of
April, A.D. 1996, and to be presented for final passage on the of April, 19b.
C
ATTEST:
City Clerk
Passed and adopted on final reading thlayor
day of A.D. 996.
i
ATTEST:
City Clerk