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HomeMy WebLinkAbout183 - 01/17/2012 - AUTHORIZING THE LEASE OF CITY-OWNED PROPERTY AT 430 NORTH COLLEGE AVENUE AND 100 WILLOW STREET TO TH ORDINANCE NO. 183, 2011 . OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE LEASE OF CITY-OWNED PROPERTY AT 430 NORTH COLLEGE AVENUE AND 100 WILLOW STREET TO THE COLORADO STATE UNIVERSITY RESEARCH FOUNDATION WHEREAS,the City is the owner of the property located at 430 North College Avenue,Fort Collins, Colorado, known as the Old Power Plant (the"City Property"); and WHEREAS, the City Property was previously used by the City's electric utility but is no longer needed, except incidentally, for utility purposes; and WHEREAS, on February 15, 1994, pursuant to Ordinance No. 11, 1994, the City and Colorado State University (CSU) entered into a lease agreement for a portion of the City Property for up to 25 years (the "1994 Lease"); and WHEREAS,on January 13,2005,pursuant to Ordinance No. 123,2004,the 1994 Lease was modified by a First Amendment to Lease Agreement, which added a five-year renewal term and increased the termination notice period to five years (the "2005 Amendment"); and WHEREAS,the 1994 Lease authorized CSU to use the City Property only for laboratory and research purposes focused upon increasing the efficiency of the internal combustion engine, and related office, administrative, outreach, extension and instructional uses; and WHEREAS, since 1994 CSU has been using the City Property for its Engines and Energy . Conversion Laboratory,but this program has grown in size and expanded in purpose over the years and the Colorado State University Research Foundation (CSURF) wishes to build an additional building on the City Property to house labs, offices and subtenant incubator companies (the "New Building"); and WHEREAS, through several years of discussion and .negotiation, City staff and representatives from CSU and CSURF have drafted a new lease agreement,a copy of which,dated December 6, 2011, is on file in the office of the City Clerk and available for review (the "Lease Agreement"); and. WHEREAS,under the Lease Agreement the City would lease to CSURF a portion of the City Property as described on Exhibit "A", attached and incorporated herein by reference (the "Main Parcel"),as well as a portion of the adjacent City-owned property known as Lot 1,Northside Aztlan Community Center,located in the 100 block of Willow Street,Fort Collins,Colorado,as described on Exhibit `B", attached and incorporated herein by reference (the "Parking Parcel"); the Main Parcel and Parking Parcel are collectively referred to as the "Leased Premises"; and WHEREAS, upon execution of the Lease Agreement CSU would relinquish all right, title and interest in and to the City Property under the 1994 Lease and the 2005 Amendment; and WHEREAS, key terms of the proposed Lease Agreement include the following: • The initial term of the Lease would be 40 years with two 20-year extensions at CSURF's sole option if CSURF builds the New Building. If CSURF does not build the New Building within eight years,the initial term of the Lease would be ten years with one five-year extension in CSURF's sole option and two additional ten-year extensions with the City's consent. • CSURF would pay rent in the amount of$1,000 for the initial term of the Lease and $1,000 for each extension unless it does not build the New Building, in which case rent would be $1,000 for the first ten or fifteen years of the Lease and$500 for each ten-year extension. • CSURF would be permitted to build the New Building and related improvements on the Main Parcel and parking improvements on the Parking Parcel, subject to the City's approval of the plans for the improvements. • Upon termination of the Lease the improvements constructed by CSURF would become the property of the City unless CSURF terminates the Lease because of a default by the City, in which case the City would compensate CSURF for the value of its improvements. • CSURF would be permitted to assign the Lease,or sublease the Leased Premises,to CSU and to sublease portions of the Leased Premises to third parties whose activities on the Leased Premises must be consistent with the purposes of the Lease; and WHEREAS, leasing the Leased Premises to CSURF for the uses described in the Lease Agreement serves the valuable public purpose of developing and utilizing energy solutions; and WHEREAS,leasing the Leased Premises to CSURF further benefits the City by reducing the City's costs for maintenance and utilities on the City Property; and WHEREAS, under Section 23-111 of the City Code the City Council is authorized to sell, convey or otherwise dispose of any and all interests in real property owned in the name of the City provided that the City.Council first finds, by ordinance, that such sale or other disposition is in the best interests of the City and,with respect to real property that is a part of the City's water or utility systems, that such disposition will not materially impair the viability of the system as a whole and 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 City Council hereby finds that leasing the Leased Premises to CSURF as provided herein serves a valuable public purpose, is in the best interests of the City, will not -2- impair the viability of the City's electric utility system as a whole, and will be for the benefit of the citizens of the City. Section 2. That the City Manager is hereby authorized to enter into a lease agreement with CSURF in substantially the form of the Lease Agreement that is on file in the office of the City Clerk,together with such additional terms and conditions as the City Manager,in consultation with the City Attorney, determines to be necessary or appropriate to protect the interests of the City or effectuate the purposes of this Ordinance, including but not limited to 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. Section 3. That as part of the Lease Agreement, CSURF is hereby authorized to enter into subleases for portions of the Leased Premises in accordance with the terms and conditions of the Lease Agreement. Introduced, considered favorably on first reading, and ordered published this 20th day of December,A.D. 2011,and to be presented for final passage on the 17th day of January,A.D. 2012. T-ORTCO M& ATTEST: yr •"�' • 4 •• s City Clerk OR Passed and adopted on final reading on the 17th day of January, A.D. 2012. OF FORT CO` or y ATTEST: > : •.!� h. City Clerk 0000 COL ORPO -3- NORTHERN ADDRESS: PHONE:970.221AI+fl 200S.Collc- vz.SuiizIOU WEBSITE: ENG INEERING FonCollins,COSO?24 FAX:97U.221.41i9 1P�' '��ortlitmeneinzzrin¢.com ExhibitA DESCRIPTION: A portion of Lot 3 in Reservation on the Northwest Quarter of Section 12, Township 7 North, Range 69 West of the 6th P.M., lying North and West of Right of Way of the Fort Collins Development Railway Company, less deed recorded May 3, 1994 at Reception No. 94038222 being more particularly described as follows; Considering the West line of Section 12 as bearing South 00°23'57" West and with all bearings contained herein relative thereto: s Commencing at the Northwest corner of said Section 12;thence along the West line of said Section 12, South 00°23'57" West, 482.47 feet; thence departing said. West line, South 89°36'03" East, 73.47 feet to a point on the East line of said Reception No. 94038222, said point also being the POINT OF BEG1i NING; thence along the approximate Top of Bank of Cache La Poudre River the following ten(10) courses: (1) South 68°26'25" East, 27.26 feet; (2) North 86'52'14" East, 40.22 feet; (3) South 68'17'47" East, 44.32 feet; (4) North 82°34'37" East, 118.30 feet; (5) South 84°24'53" East, 151.12 feet; (6) South 75°36'07"East, 63.13 feet; (7) South 68°36'28"East, 42.92 feet; (8) South 79023'46" East, 50.91 feet; (9) South 71°20'59" East, 61.83 feet; (10) South 76°36'43"East, 63.27 feet to a point on the Northwesterly line of Burlington Northern Railroad Right of Way; thence along said Northwesterly line, South 57°00'09" West, 776.12 feet to a point on the East line of said Reception No. 94038222; thence departing said Northwesterly line and along said East line,North 00°34'27" East, 521.48 feet to the POINT OF BEGINNING. The above described easement contains 4.091 acres (178,190 square feet) more or less and is subject to all easements and rights-of-way now on record or existing. December 1, 2011 CNS Sheet 1 of POINT OF EXHIBIT A COMMENCEMENT NORTHWEST CORNER S12,T7N,R69W S89°36'03"E i 73.47' POINT OF BEGINNING f. APPROXIMATE PROPERTY BOUNDARY AND _ I? S68°26'25'E CENTERUNE CACHE LA POUDRE RIVER v 27.26' APPROXIMATE TOP NB6°52'WE 40 22' OF BANK S68°1T 47-E CACH S75°36'07"E 44.32' E`A POUDRE RIVER 63.13' S68"36'WE 118.30' 151.12' 42.92' S79°23'46"E ((( NB2.34.37E S84.24'53-E 50.91, S71°20'59'E LLJ 61.83' (' w :,.y''=- , 's' 3'.?': 000 O " O 6 `�- 36•g3,E Q < uy,.ti ® O O IuiUJ > OOui �c 3o c • MONUMENT - NORTHWESTERLY \ - �. In r �' LINE OF BNRR ROW /1 ) '� ELI MAIN PARCEL 178,184 sq.ft. c FWNTAIN J 4.091 ac ZI Ur EAST REC. No. Z 94038222lw mLL / IO } — P ��A LOT2 U) p�� .ds /i/ / / (NORTHSIDE C / .m J��\�G /;�/ / CO M LAN Y j CENTER) 50' BNRR 393,184 sq.ft I� 9.026 ac '/ EASEMENT IN (PARKING o I PARCEL LOT 1 Ifn I (NORTHSIDE AZTLAN 410 NORTH I I COMMUNITY CENTER) - COLLEGE,LLC G 1 361,142 sq.ft. RECEPTION I 8.297 ac. No.2003000605 I \` I I I � WEST CORNER S12,T7N,R89W SHEET 2 0 F2 100 0 100 Feet I NORTHERN eF3=c eas= :=:=.=31 N O RTH( INS ENGINEERING 1 Inch — t00 ft- NORTHERN ADDRESS: - PHONE:970.221.4158 TE:WEBS 200S.CollegeAve Suitetoo WEBS rthernengneenng.com ENGINEERING FortColins,0080524 FAX:970.221A159 Exhibit B DESCRIPTION: All that portion of Lot 1, Northside Aztlan Community Center lying west of the Burlington Northern Railroad as described at Reception No. 2000032174 being more practically described as follows; Considering the North line of Lots 1 and 2,Northside Aztlan Community Center as bearing North 57°00'09" East and with all bearing contained herein relative thereto: POINT OF BEGINNING being the Northwest comer of said Lot 1;thence along the North line of said Lot 1, North 57000'09" East, 261.57 feet to a point on the Westerly line of Burlington Northern Railroad Easement; thence along said Westerly line along a non-tangent curve concave to the Southeast having a central angle of32°28'24" with a radius of794.49 feet and an arc length of 450.29 feet and the chord of which bears South 16002'1 1" West, 444.29 feet; thence continuing along said Westerly line, South 00°12'O 1" East, 148.00 feet to a point on the Southern line of said Lot 1;thence along the South line of Lot 1 along a non-tangent curve concave to the South having a central angle of 12'27 11" with a radius of 400.00 feet and an arc length of 86.94 feet and the chord of which bears North 61°02'07" West, 86.77 feet to the Southwest comer of said Lot 1;thence along the Western border of said Lot 1 the following three (3) courses: (1) North 00045' 15" West, 190.24 feet; (2) North 89°36'03" West, 20.14 feet; (3) North 00°23'57" East, 200.17 feet to the POINT OF BEGINNING. The above described easement contains 1.159 acres (50,474 square feet) more or less and is subject to all easements and rights-of-way now on record or existing. November 28, 2011 CNS Sheet 1 o f2 EXHIBIT B Cq POUDRE Rt i w i w ;' f f w �r.f o ■ Z ��QO` �P�\ -,---NORTH UNE OF LOTS 1 8 2 ' / (NORTHSIDE AZTLAN ✓! � 1Py���ooOQg//// COMMUNITY CENTER) oo LOT 2 (NORTHSIDE AZTLANAN R=794.49' L=450.29' COWIMUNITY POINT OF / Chord earl CENTER) Chord Bearing=St6'02'iP4V 393,184 sq.ft. BEGINNING Chord Length=444.29' 9026 ac PARKING / rr / - N PARCEL 50474 sq.ft. t.uh l z 1.159 ac. 410 NORTH Ilse COLLEGE. LLC fj i. / RECEPTION v,;am;oo<a,ns 0::J( I 0:.n- I N89 36'03"W PO 14 STERLv LINE OF BNRR EASEMENT LOT 1 300 NORTH I (NORTHSIDE AZTLAN COLLEGE,LLC COMMUNITY CENTER) N`R "EPTION'' „Z w 361,142 sq.ft. C; a I 8.297 ac. I b I r, I R=400.00' L=86.94' 6=12 27'1T' Chord Bearing=N61.O2Orw Chord Length=86.77' <0 rI SOUTH UNE OF LOT 1 (NCRTHSIDE AZTLA COMMUNITY CENTER) >_ SHEET OF 2 t00F3 E3 01:=:=:==3� Feet NORTH ( NORTHERN ( INFgT) ENGINEERING 1 Irrh- 100R