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HomeMy WebLinkAbout048 - 05/20/2008 - AUTHORIZING THE LEASE OF A PORTION OF RUNNING DEER NATURAL AREA TO HAGEMAN EARTH CYCLE, INC. ORDINANCE NO. 048, 2008 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE LEASE OF A PORTION OF RUNNING DEER NATURAL AREA TO 14AGEMAN EARTH CYCLE, INC. WHEREAS, in 1998 through 2000, the City of Fort Collins purchased certain land known as Running Deer Natural Area(the "Natural Area") for its Natural Areas program; and WHEREAS, a portion of the Natural Area has previously been occupied and used by Hageman Earth Cycle, Inc. ("Hageman") for the deposit and storage of tree limbs, leaves, and other yard waste and organic materials for composting, mulching and other reuse; and WHEREAS, the City has, in the acquisition of natural areas, established a practice of working with pre-existing users and tenants of acquired property in transitioning the properties to public natural area ownership; and WHEREAS, pursuant to this practice and to City Council's authorization in Ordinance No. 85, 2001, the City previously leased to Hageman that portion of the Natural Area shown on Exhibit "A" (the "Lease Area"), in order to continue its use of that property for the above- referenced purposes; and WHEREAS, by adoption of Ordinance No, 48, 2006, the City later extended the lease to Hageman of the Lease Area for an additional two-year period; and WHEREAS, in leasing the Lease Area to Hageman, the initial lease term of five years and the extension of an additional two years was intended to allow sufficient time for Hageman to transition its operations to a new location; and WHEREAS, Hageman has not relocated its operations as anticipated, and has requested an additional one-year lease with the option to extend the lease for nine one-year terms; and WHEREAS, City staff has negotiated with Hageman a proposed lease agreement similar to the existing lease agreement but with several additional terms and conditions designed to ensure that no adverse environmental impact occurs, to protect ground water in the area, and to prevent the movement of soil and water from the Lease Area; and WHEREAS, the lease agreement negotiated with Hageman and containing such provisions, dated May 14, 2008, is on file in the Office of the City Clerk and available for public inspection (the "Lease Agreement"); and WHEREAS the Lease Agreement establishes an initial one-year term with nine possible one-year extensions, subject to approval by the City, for a monthly rental amount of$1,540 for the initial term; and WHEREAS, the Natural Areas program has a limited annual budget for restoration of properties and the restoration of the Lease Area is not a high priority among the properties to be restored; and WHEREAS, the interim use of the Lease Area as described herein, in exchange for payment of the required monthly rent and maintenance of the Lease Area by Hageman during the term of the lease, together with the eventual restoration of the Lease Area will further, rather than interfere with or impair, the City's long-term intended uses of the Lease Area; and WHEREAS, City staff has also determined that the lease rate of $1,540 per month is consistent with the approximate fair market lease rate for comparable property; and WHEREAS, pursuant to Section 23-114 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 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 lease by the City of the Lease Area to Hageman, under the terms and conditions set forth herein and in the Lease Agreement, is in the best interests of the City of Fort Collins. Section 2. That the City Manager is hereby directed to at least annually review the status of Hageman's compliance with the terms and conditions of the related regulatory requirements, as well as the efforts by Hageman to identify and arrange for a relocation site, and to report the outcome of such review to City Council, which report should include a statement as to whether the lease is being renewed for an additional year. Section 3. That the City Manager is hereby authorized to enter into the Lease Agreementin the form on file in the office of the City Clerk, with any other provisions determined by the City Manager, in consultation with the City Attorney, to be necessary and appropriate to protect the interest of the City , including any necessary changes to the legal description of the Property, as long as such changes do not materially increase the size or change the character of the leased premises, and is further authorized to extend the term of the same for the full potential term of ten years, as provided herein. -2- Introduced, considered favorably on first reading, and ordered published this 6th day of May, A.D. 2008, and to be presented for final passage on the day of May, A.D. 2008. 4—iole i Mayo ATTEST: "k -�1�1 City Clerk Passed and adopted on final reading on the 20th day of A.D. 2008. 00, — ay ATTEST: s City Clerk lC'i{ref ��' -3-