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HomeMy WebLinkAbout034 - 03/15/2005 - AUTHORIZING THE LEASE OF CITY-OWNED PROPERTY AT 3829 EAST PROSPECT ROAD, FORT COLLINS, COLORADO, TO ORDINANCE NO. 034, 2005 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE LEASE OF CITY-OWNED PROPERTY AT 3829 EAST PROSPECT ROAD,FORT COLLINS, COLORADO, TO FRONTLINE BIOENERGY WHEREAS,the City of Fort Collins,Colorado(the"City") is the owner of property known as the "Resource Recovery Farm," located at 3829 East Prospect Road, Fort Collins, Latimer County, Colorado (the"Property") more particularly described on Exhibit"A"attached hereto and incorporated herein by this reference; and WHEREAS, this Property was previously used by the City's Wastewater Utility for its land disposal "sludge farm" project, but the Property has since been transferred to the Natural Areas program for use as open space in accordance with Ordinance No. 098, 2003; and WHEREAS, Frontline Bioenergy has proposed to lease certain buildings and areas on the Property for use in the development of biomass-based hydrogen fuels and related processes,and has worked with City staff to identify the particular portions of the buildings and the Property that are most suitable for its initially intended activities,together with certain additional areas that Frontline Bioenergy may be able to use in the future for its operations (collectively referred to as the"Leased Premises")and shown on Exhibit`B"attached hereto and incorporated herein by this reference;and WHEREAS, leasing the Leased Premises to Frontline Bioenergy will be a benefit to the community by contributing to the City's local economic vitality, as well as national and global sustainability; and WHEREAS, on February 18, 1997, the City Council, by Resolution 1997-025, adopted the Community Visions and Goals 2015, City Structure Plan, and City Plan Principles and Policies as elements of the Comprehensive Plan of the City, also known as "City Plan", which supports improving air quality, reducing motor vehicle emissions, encouraging and facilitating increased energy efficiency and use of renewable resources, and cooperation among independent community organizations; and WHEREAS,on April 1, 1997,the City Council adopted Resolution 1997-051 providing that as a user of energy,the City shall regularly evaluate the latest technologies utilizing alternative fuels for transportation and, to the greatest extent practicable, apply such technologies to the operation of City vehicles in order to provide energy efficient transportation; and WHEREAS, Resolution 1997-051 also provides that as community leader, the City should also regularly evaluate means by which City-wide demand and usage of fossil fuels can be reduced and should attempt to develop means by which it can further such goals, through the City's role as educator, promoter and regulator; and WHEREAS, on November 16, 1999, the City Council adopted Resolution 1999-137 establishing a policy to take cost-effective actions that benefit the community to reduce local greenhouse gas emissions; and WHEREAS,the City anticipates that increased use of hydrogen will provide benefits to the citizens of Fort Collins such as improved air quality, reduced greenhouse gas emissions, reduced dependence on imported oil,and retention of the proceeds from energy consumption in the local and state economy; and WHEREAS,the City is in a unique position to attract hydrogen-related projects and funding, due to the potential for region partnerships, development of the Mason Street Corridor, a favorable testing environment for technologies with high altitude and extreme weather variation, and access to local sources of hydrogen; and WHEREAS,on March 19,2002,the City Council adopted Resolution 2002-027,establishing a policy to implement hydrogen-related projects within the City, and directing the City Manager to explore partnerships that would facilitate the creation of hydrogen projects; and WHEREAS, the City's Utilities have budgeted and planned for certain funds to be used to promote the development of hydrogen fuels projects in Fort Collins, because of the significant benefits to the ratepayers of the electric utility that are expected to result from the development of the capability to locally produce alternative and renewable fuels and from the potential for local distributed power generation; and WHEREAS, the proposed use by Frontline Bioenergy of the Leased Premises will provide significant assistance to Frontline Bioenergy in its development of the project described herein;and WHEREAS, development of a successful bioenergy facility could lead to the diversion of a substantial volume of biomass from the Latimer County Landfill in the future,consistent with the City's solid waste management objectives; and WHEREAS, City staff has negotiated a lease agreement with Frontline Bioenergy that provides for use of the Leased Premises for up to three years and providing for certain protections and requirements to protect the City's interests, a copy of which lease agreement, dated February 25, 2005 (the "Lease Agreement"), is on file in the office of the City Clerk and available for public inspection; and WHEREAS, the Lease Agreement provides that the City will be a preferred customer for purchase of hydrogen from the Frontline Bioenergy project, and further provides that Frontline Bioenergy will work with Utilities staff to provide support and education related to biofuels research and usage; and WHEREAS, under Section 23-111 of the Code of the City of Fort Collins, the Council is authorized to lease any and all interests in real property owned in the name of the City,provided that Council first finds by ordinance that the lease is in the best interests of the City. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the Council hereby finds that the lease of the Leased Premises to Frontline Bioenergy as provided herein is in the best interests for the City of Fort Collins. Section 2. That the Council hereby finds that the use of Utilities funds to provide lease assistance to Frontline Bioenergy as described herein,in light of the various policies and the benefits to be gained by the promotion of local hydrogen fuels resources described herein, is of benefit to the Utilities and will be of benefit to the ratepayers of the Electric Utility. Section 3. That the City Manager is hereby authorized to execute a lease agreement for the lease of the Leased Premises to Frontline Bioenergy,consistent with the terms of this Ordinance and in a form substantially similar to the Lease Agreement,together with such additional terms and conditions as the City Manager, in consultation with the City Attorney, determines to be necessary and appropriate to protect the interests of the City. Section 4. That all amounts paid by Utilities and Frontline Bioenergy for the use of the Leased Premises shall be deposited in the Natural Areas Program Fund. Introduced, considered favorably on first reading, and ordered published this 1st day of March, A.D. 2005, and to be presented for final passage on the 15th day of March, A.D. 2005. f Mayor ATTEST: e City Clerk Passed and adopted on final reading this 15th day of March, A.D. 2005. Mayor ATTEST: City Clerk EXHIBIT OW DESCRIPTION OF A PORTION OF THE CITY OF FORT COLLINS RESOURCE RECOVERY FARM A tract of land located in Sections 21, 22, 27 and 28, Township 7 North, Range 66 West of the Sixth Principal Meridian, Larimer County, Colorado, the said tract is also a portion of that certain tract of land described in a Warranty Deed recorded October 2, 1979 in Book 1992 at Page 280 records of the Clerk and Recorder of the said Larimar County, the said tract is also a portion of .that certain tract of land described in Exhibit "Do as attached to an Basement Agreement Recorded September 6, 1995 at Reception No. 95055231 records of the said Clerk and Recorder, being more particularly described as follows; Considering the south line of the Southeast quarter of Section 21 an hearing North 88 degrees 44 minutes 39 seconds West between a LS 20685 Aluminum Cap monument at the south quarter corner of the said Section 21 and a LS 17497 Aluminum Cap monument at the southeast corner of Section 21, based upon G.B.S. observation and with all bearing contained herein relative thereto] Commencing at the Southeast Corner of the said Section 21; THENCE along the south line of the said southeast quarter, North 88 degrees 44 minutes 39 seconds West fcr a distance of 300.61 feet to the TRUE POINT OF BEGINNING of this description; THENCE leaving tho said south line, South 19 degrees 13 minutes 46 seconds East for a distance of 94.31 feet; THENCE South 04 degrees 13 minutes 14 seconds East for a distance of 593.72 feet; THENCE South 23 degrees 43 minutes 07 seconds East for a distance of 336.44 feet; THENCE South 36 degrees 26 minutes 05 seconds East for a distance of 422.60 fact; THENCE North 62 degrees 39 minutes 07 seconds East for a distance of 26.49 feet; THENCE South 39 degrees 56 minutes 06 seconds East for a distance of 94.04 feet; THENCE North 87 degrees 25 minutes 24 seconds East for a distance of 159.71 feet; THENCE South 59 degrees 25 minutes 23 seconds East for a distance of 135 .83 feet; THENCE South 03 degrees 16 minutes 50 seconds East for a distance of 107.19 feat; THENCE North a5 degrees 41 minutes 26 seconds East for a distance of 48.38 feet; TIIENCE North 43 degrees 51 minutes 33 seconds East for a distance of 68.66 feet to the westerly right of way of I-25 as shown on a Boundary Survey of the Strauss Cabin Trailhead Property performed by LS27497 (myself) for the said City of Fort Collins in October 1986; THENCE along the said westerly right of way the following PAGE 1 OF 3 three (3) courses and distances, (1) North 12 degrees 32 minutes 55 seconds West for a distance of 991 . 19 feet; (2) North 02 degrees 42 minutes 21 seconds Weat for a distance of 304 .35 feet; (3) North 12 degrees 25 minutes 28 seconds West for a distance of 321.64 feet; THENCE continuing along the said westerly right of way as shown on a survey by LS14023 and as defined in the property description shown in the said Book 1992 at Page 280 the following seven (7) courses and distances, (1) North 12 degrees 38 minutes 14 seconds West for a distance of 968 . 84 feet; (2) North 25 degrees 25 minutes 54 seconds West for a distance of 425 .50 feet; (3) along a curve to the right having a radius of 11680.00 feet a central angle of 03 degrees 00 minutes 01 seconds and an arc length of 611.62 feet, being subtended by a chord of North 09 degrees 52 minutes 54 seconds west for a distance of 611.55 feet; (4) North 06 degrees 05 minutes 36 seconds East for a distance of 417.50 feet; (5) along a curve to the right having a radius of 11583.00 feet a central angle of 06 degrees 33 minutes 06 seconds and an arc length of 1324.49 feet, being subtended by a chord of North 03 degrees 07 minutes 19 seconds west for a distance of 1323.77 feet; (6) North 00 degrees 11 minutes 08 seconds East for a distance of 53.90 feet; (7) North 06 degrees 05 minutes 24 seconds West for a distance of 345.66 feet to the north line of a Permanent Easement as recorded in Resolution 88-66 recorded June 13, 1988 at Reception No. 80026808 records of the said Clerk and Recorder, THENCE along the said north line and along the east line of the said easement recorded at Reception No. 86026808 the following seven (7) courses and distances, (1) South 89 decrees 57 minutes 13 seconds West for a distance of 1059.64 feet; (2) North 36 degrees 10 minutes 43 seconds west for a distance of 117.93 feet; (3) North 17 degrees 41 minutes 20 seconds East for a distance of 404.31 feet; (4) along a curve to the left having a radius of 612.96 feet a central angle of 40 degrees 05 minutes 20 seconds and an arc length of 428.88 feet, being subtended by a chord of North 02 degrees 21 minutes 20 seconds West for a distance of 420.18 feet; (5) North 22 degrees 24 minutes 00 seconds West for a distance of 110 .41 feet; (6) along a curve to the right having a radius of 532.96 feet a central angle of 14 degrees 20 minutes 52 seconds and an arc length of 133 ,46 feet, being subtended by a chord of North 15 degrees 13 minutes 34 seconds West for a distance of 133 .11 feet; (7) non-tangent from the previous curve, Ncrth 44 degrees 22 minutes 29 seconds East for a distance of 136.14 feet to the existing south right of way of East Prospect Rca.d; THENCE along the said south right of way, being a line which is 30.00 feet (measured at right angles) south of and parallel with PAGE 2 OF 3 the north line of the said northeast quarter of the said Section 21, North BO dcgreoo 21 minutes 25 seconds West for a distance of 394.38 feet to the east line of that certain tract of land described in a Special Warranty Deed recorded May 1, 1997 at Reception No. 97026804 records of the said Clerk and Recorder; THENCE along the said east line, South 32 degrees 18 minutes 02 seconds East for a distance of 560.68 feet to the south line of the said tract described at Reception No. 970268041, THWCE along the said south line, South 88 degrees 25 minutes 55 seconds West for a distance of 127 .80 feet to the east line of the Mining and Reclamation Agreement Regarding Resource Recovery Farm Property as filed with the Clerk' s Office of the said City of Fort Collins having an "effective date" of April 24, 2000; THENCE along the said east line of the Mining and Reclamation Agreement the following three (3) courses and distances, (1) South 01 dogreos 12 minutes 28 seconds West for a distance of 3588 , 51 feet; (2) South 39 degrees 41 minutes 47 seconds East for a distance of 229.49 feet; (2) South 06 degrees 41 minutes 55 seconds East for a distance of 1197.3.0 feet to the north line of that certain tract of Sand described in a Bargain and Sale Deed recorded September 6, 1995 at Reception No. 95OSS229 records of the said Clerk and Recorders THENCE along the said north line, South 88 degrees 40 minutes 11 seconds East for a distance of 103 .42 feet to the northerly line of that certain tract of land described in a Bargain and Sale Deed recorded September 6, 1995 at Reception No. 95055230 records of the said Clerk and Recorders THENCE along the said northerly line, North 61 degrees 21 minutes 01 seconds East for a distance of 306.09 feet to the said south line of the southeast quarter of Section 21; THENCE along the said south line, South 88 degrees 44 minutes 39 seconds East for a distance of 564.61 feet to the point of beginning. Containing 156.487 Gross Acres more less. The above described tract is subject to the said Easement granted at Reception No. 88026808, The said casement contains 5.118 acres more or lass. The net area for the above described tract is 151.369 acres more or less. The above described tract in also subject to any other easements and rights of ways now existing or of record that encumber the property. I hereby state that the above description was prepared by me and is true and correct to the best of my professional knowledge, belief and opinion. This description is based upon previously compiled descriptions and not upon a actual field survey. WALLACE C. MUSCOTT COIARADO P.L.S. 17497 P.O. Box 5a0 FORT COLLINS, CO 80522 PAGE 3 OF 3 Exhibit B(1) — Resource Recovery Farm Facilities i jI �p I+ Y flfl Ril t I i YN c- °1 t" eI , ® 0 200 400 600 800 Feet Exhibit S() — Leased Buildings in /: > 4 =' © \ > \a » v �\� w« :a . . ^ � � » : , [Composting B \ 0 100 200 300 400 Rk Exhibit B(3) — Office / Shop Building "Leased Premises" ay I a Loa? O CD 1 , �� 11 , N /-K CD 3 0 in m r a—