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HomeMy WebLinkAboutK 2 ANNEXATION AND ZONING 4.14.97 P AND Z BOARD HEARING - 51 91B - REPORTS - RECOMMENDATION/REPORT W/ATTACHMENTSITEM NO. 22 �f MEETING DATE 4/14/97 STAFF Bob Blanchard Citv of Fort Collins PLANNING AND ZONING BOARD STAFF REPORT PROJECT: K-2 Annexation and Zoning, #51-91B APPLICANT: City of Fort Collins OWNERS: David Ball HUB Enterprises PO Box 2307 Fort Collins, CO 80522-2307 Frank A. Just 1050 Greenfield Court Fort Collins, CO 80524 A. L. Gilbert Company P. O. Box 38 Oakdale, CA 95361 PROJECT DESCRIPTION: Annexation and zoning of an enclave area of approximately 29.7 acres, located east of 1-25, 1/4 mile north of Vine Drive and south of the Larimer and Weld Canal. The recommended zoning is I, Industrial. RECOMMENDATION: Staff recommends approval of the annexation and I, Industrial Zoning. EXECUTIVE SUMMARY: This is an annexation and zoning of an encl6iv-6areFaFof approximately 29.7 acres in size, located east of 1-25, 1/4 mile north of Vine Drive and south of the Larimer and Weld Canal. The site includes a wholesale distribution business, boat and RV storage and agricultural feed sales on three separate parcels of land. The recommended zoning is I, Industrial. COMMUNITY PLANNING AND ENVIRONMENTAL SERVICES 281 N. College Ave. P.O. Box 580 Fort Collins, CO 80522-0580 (970) 221-6750 PLANNING DEPARTMENT Timberline Annexation and Zoning, #40-91 B K-2 Annexation and Zoning, #51-91 B April 14, 1997 Planning and Zoning Board Meeting Page 5 Recommendation Staff continues to advise that the Board recommend that the City Council approve the annexation of these properties with the zoning districts consistent with the City Structure Plan as outlined in the staff reports. n . LL A I Timberline Annexation and Zoning 3 4 F. 1 1 1. SPRING CREEK FARMS 3432 CARLTON AVE FORT COLLINS, CO 80525 2. GENERAL STEEL INDUSTRIES P O BOX 610026 DALLAS, TX 75261 1 02 3. ENERGY COATINGS CO INC P O BOX 610026 DALLPS, TX 75261 4. TIMBERLINE STAR PROPERTIES 401 W. MULBERRY STREET FORT COLLINS, CO 80521 5. CARGILL INC P O BOX 5626 MINNEAPOLIS, MN 55440 TIMBERLINE OWNERSHIP E OUT MOUNTAIN VISTA DRIVE LMN EAST VINE DRIVE K=2 ANNEXAMON DAVID L. BALL 1118 NE FRONTAGE RD FORT COLLINS, CO 80524 FRANK A JUST A L. GILBERT CO 1050 GREENFIELD P O BOX 38 FORT COLLINS, OAKDALE, CA 95361 CO 80524 K=2 OWNERSHIP AdminisL..dve Services Finance Administration City of Fort Collins MEMORANDUM DATE: April 3, 1997 TO: Planning and Zoning Board FROM: Alan J. Krcmarik, Financial Officer .44:� SUBJECT: Annexation Financial Concerns: Taxes, Fees, Permits, & Licenses PURPOSE: Property owners facing the prospect of annexation need to be informed about taxes, fees, and licensing requirements of the City of Fort Collins. Fort Collins has different property and sales tax requirements than the un-incorporated areas of the county. This memorandum reviews some of these financial concerns that property owners that are considering annexation may have. The purpose is to identify the most important differences in taxation, permitting requirements, and activities for which licenses are required. TAXES and FRANCHISE FEES Property Tax. The City of Fort Collins levies a property tax of 9.797 mills. This is just shy of 1 % of the assessed value of the property. Properties outside the City limits pay the Poudre Fire Authority levy of 9.301 mills. The difference amounts to $4.96 per $10,000 of assessed value. Sales and Use Tax. The City of Fort Collins levies a 3% Sales and Use tax on property acquired and placed into use within the City limits. For residential property owners, this is most dramatic on the purchase of major items, most notably, automobiles and trucks. On a $20,000 vehicle, the City tax amounts to $600. For retail businesses, the impact is the requirement to become a licensed retailer and to collect and remit City sales tax. Commercial and industrial land uses would also be subject to use tax on equipment bought outside the City for which a Colorado City sales tax has not been paid. Lodging Tax. In addition to the sales and use tax, the City imposes a 3% tax on the temporary use of lodging facilities. This tax is paid by the lodger and is collected on the lodgers bill. Gas Company Occupational Privilege Tax. The City imposes an Occupational Privilege tax on Public Service Company. The tax is a total amount of $445,000 per year. PSCo passes 300 LaPorte Avenue • P.O. Box 580 • Fort Collins, CO 80522-0580 • (970) 221-6788 • FAX (970) 221-6782 2 the tax on to its customers. Customers pay about 3% of their monthly bill to PSCo which is then remitted to the City. Franchise Fees. The City imposes a Cable Franchise fee on TCI. This fee is passed on to its customers. Many property owners near the City boundaries also are served by TCI. Telephone Charge. The City imposes a per account telephone charge of $30. This amount is included on the monthly telephone bills that customers pay. Beer and Liquor Occupational Privilege Tax. The City imposes an annual tax on the privilege of serving beer and liquor. The cost of the tax is from $750 to $1,650 depending on the type of license and the hours of operation. PLANT INVESTMENT & CAPITAL EXPANSION FEES and REQUIRED PERMITS To offset the costs of providing infrastructure within its corporate boundaries, the City has established fees which are collected at the time building permits are issued. These include the following: Street Oversizing Residential (per unit) $ 895 Residential Multi -family (per unit) 554 Light Industrial (per acre) 7,292 Heavy Industrial (per acre) 9,722 Office/General Commercial (per acre) 14,583 Retail Commercial (per acre) 19,443 Electric Underground 150 AMPs or less (per single family residence) 414 200 AMPs or Electric Heat (per single family residence) 488 Temporary Pedestal Service (per single family residence) 100 _ Water Plant Investment Fee Residential 2,464 Commercial 5,867 Industrial 12,700 Raw Water Requirement Residential 1,200 Commercial 4,500 Industrial 9,000 Waste Water Plant Investment Fee Residential 1,600 Commercial 6,814 Industrial 9,100 Storm Drainage Basin Fee Residential 146 - 867 Commercial 1,132 - 6,692 Industrial 2,790 - 16,500 3 Neighborhood Parkland Residential (per unit) $ 848 Commercial & Industrial land uses do not pay this fee Community Parkland Residential (per unit) 934 Does not apply to Commercial & Industrial land use Library Residential (per unit) 230 Does not apply to Commercial and Industrial land use Police Residential (per unit based on unit size) 84 Commercial (per square foot) .10 Industrial (per square foot) .03 Fire Residential (per unit based on unit size) 121 Commercial (per square foot) .15 Industrial (per square foot) .04 General Government Facilities Residential (per unit based on unit size) 154 Commercial (per square foot) .17 Industrial (per square foot) .05 Plan Review. To recover some of the costs of providing services, the City has established fees for some services. These include the following. Building Permit & Plan Check Fees per schedule Annexation $1,040 Rezoning 856 Overall Development Plan 1,400 Preliminary PUD 1,472 Final PUD 2,808 Preliminary Subdivision 1,312 Final Subdivision 2,176 Project Development Plan 1,477 Final Project Development Plan 2,808 Non -Conforming Use Review 1,216 Extension of Final Approval 496 Minor Amendment 168 4 REQUIRED LICENSES Through its home rule charter and code of municipal ordinances, the City requires licenses for certain activities. These include the following. Auctioneer $ 25 Bowling Alley 55 Carnival, Circus schedule on size and number of days Contractors depends on the type of service Places of Entertainment 80 Food Service various Game Machines 6 month license cost depends on type of device Going out of Business no fee Liquor Licenses depending on type $ 454 - 529 Arborist no fee Dog Licenses $ 10 -25 Special Event Permit no fee Alarm Business Permit $75 Massage Therapist 50 Movie Theater 110 Drive In 80 Outdoor Vendor 10/month Pawn Broker 55 plus $2,500 surety bond Sales and Use Tax No fee Lodging Tax No fee Secondhand dealer $ 55 Solid Waste Collector Per vehicle 30 This list is subject to periodic update. The figures in this memo rely on reports issued by various City Departments. Fees may have changed since the issuance of the reports. I will be present at the April 14" meeting to answer questions. Please let me know if there are — questions that may required research prior to the meeting. MEMORANDUM TO: Bob Blanchard. Planning RE: Electric Service issues related to current annexations DT: April 3, 1997 FR: Dennis Sumner Confirming our conversations please note the following information concerning electric service for current annexations: Bredero Price Annexation: At your request, I have been working with Mr. Greg Kechter, Plant Manger of the Bredero Price pipe coating plant located at 1931 Timberline, to determine comparability of electric service that can be provided by FCL&P upon annexation with that which is currently provided by Public Service Company (PSCo). Based on the historic data provided by Bredero Price for a one-year comparison, Fort Collins Light and Power should be able to provide similar interruptible electric service with comparable terms for service interruptions and equal or lower costs than service currently provided by PSCo. Additionally, if Bredero Price would find it of added value, the utility is willing to explore options for a ten (10) year contract for this interruptible service. Offering this interruptible service contract will require the adoption of a new wholesale electric rate by the City's power supplier, Platte River Power Authority (Platte River). While Platte River staff is confident the Platte River Board will approve this new rate, it is a qualifier to this offer that must be noted. The normal time frame anticipated for process and procedures related to Board adoption of a new rate is in the range of 60 days. General Issues Related to Electric Service for annexed areas: Transfer of utility equipment required to serve customers: The City of Fort Collins Light and Power Utility (FCL&P) provides electric service within the city limits of Fort Collins. Following annexation, the City will assume responsibility for electric service in the newly annexed area. In most cases, the transfer will take place within two years of annexation. In areas formerly provided electric service by Public Service Co. of Colorado (PSCo), the transfer is made in accordance with contractual agreement between the City and PSCo. In areas formerly served by Poudre Valley REA (PVREA), the transfer of utility facilities is guided by Colorado State Statute. In both instances FCL&P pays all costs associated with the transfer of electric facilities. There is no cost to existing customers when the electric service is transferred from PSCo or PVREA to FCL&P. K-2 Annexation and Zoning, #51-91B April 14, 1997 P & Z Meeting Page 2 COMMENTS: 1. Background: The surrounding zoning and land uses are as follows: N: I, Industrial; single family residence and outbuildings E: I, Industrial; vacant S: I, Industrial; vacant W: LMN, Low Density Mixed Use Neighborhood (across 1-25); vacant The K-2 property is approximately 29.7 acres in size and is located east of 1-25, 1/4 mile north of Vine Drive and south of the Larimer and Weld Canal. It is located within the Fort Collins Urban Growth Area (UGA). According to policies and agreements between the City of Fort Collins and Larimer County, contained in the INTERGOVERNMENTAL AGREEMENT FOR THE FORT COLLINS URBAN GROWTH AREA, the City will agree to consider for annexation property in the UGA when the property is eligible for annexation according to State law. Enclave areas become eligible for annexation when they have been completely surrounded, for at least three years, by properties that are within the City limits. The area to be annexed has been an enclave for at least three years and is therefore, eligible for annexation. The area became completely surrounded through the following annexations: N: Buckeye Farms, Inc. and Harold D. Einarsen Annexation - October 18, 1988 - _- _E:._Buckeye Farms, Inc. and Harold D. Einarsen Annexation - October 18, 1988 S: Front Range Farms II Annexation - January 19, 1988 -- W: Allen, Lind, Moore Annexation - February 21, 1984 This area became eligible for involuntary annexation into the City on October 18, 1991. In 1992, an enclave annexation of the area was proposed by City staff. The Planning and Zoning Board recommended approval of the annexation and zoning into the I-L, Limited Industrial District with a PUD condition. The City Council declined to annex the property at that time due to concerns raised by the property owners about property taxes, sales taxes and storm drainage fees. Upon annexation, property taxes are adjusted by adding the City's mill levy and removing the Poudre Fire Authority's mill levy. Purchases made by businesses within the annexation would have to include City sales tax. Business expansions would require payment of the City use tax and storm drainage fees would be assessed for the property, based on the amount of impervious area and existing land uses. Electric Rates: Electric rates of FCL&P are among the lowest in the State and generally customers find the transfer of service to result in lower costs for electrical energy. Individual evaluations can be made if desired. A customer wanting more information on electric costs for their particular application should call FCL&P at 221-6700. PVREA annexed areas: To compensate PVREA for the loss of service territory, state law requires a payment of service rights fees to PVREA. This fee is equal to 25% of the City's revenue from electric service to all customers within the annexation at the time the service territory is transferred from PVREA to FCL&P. A 5% service rights fee is applicable to any new customers added within the annexation after the transfer of the service territory. These service rights fees terminate ten years after the electric customers and facilities are transferred from PVREA to the City and are collected from the annexed customers through the City's electric rates. The relatively low rates of FCL&P help to mitigate the impact of the service rights fee. PSCo annexed areas: The service rights fees do not apply to any customers transferred from PSCo or new customers within formerly served PSCo service territory. Please feel free to call me at 221-6718 if I may be of further assistance to you. FAX MEMORANDUM DATE: April 3, 1997 TO: Greg Kechter Plant Manager, Bredero Price Company Fax: 970.221.3483 / Phone: 970.484.1440 FROM: Dennis Sumner Key Accounts Manager, City of Fort Collins Light and Power Fax: 970.229.5322 / Phone 970.223.6718 SUBJECT: Electric Service for Bredero Price Plant NUMBER OF PAGES INCLUDING THIS COVER: ' TWO (2) Confirming our discussions, I wish to advise you that in the event of annexation by the City of Fort Collins, Fort Collins Light and Power (FCL&P) will be able to offer Bredero Price an electric rate comparable to the rate currently provided by Public Service Company (PSCo). Both electric costs and terms of interruption will be comparable. Background Details: Pricing: Based on the historic data you provided, your cost for electricity from PSCo for 1996 electric us was $297,706.44 (excludes 3% sales tax). Assuming the same historic use pattern and based on the PSCo rates effective 10/1/96, including adjustments in effect 4/l/97, your estimated PSCo electric costs for 1997 are $324,240.67. I have not been able to confirm ihis calculation with PSCo representatives and suggest you ask thenrto calculate this for you. Fort Collins is proposing a contract for electric service, based on your 1996 load data, which will not exceed your 1996 costs for electricity. Interruptions: The terms of your current PSCo rate provides for an unlimited number of interruptions by per year with no limitations on the number of hours per day that you can be interrupted. The terms of FCL&P's offer would be much more limiting on your exposure to interruptions. Additionally, based on today's market, interruptions would be based solely on power system operational needs. Based on historic data, this would correspond to a total of three interruptions over the last two years. Contract Period:. As with the PSCo rate, a minimum contract period of two (2) years would be required. Additionally, if Bredero Price would find it of added value, FCL&P is willing to explore options for a ten (10) year contract for this interruptible service. I hope this information addresses your concerns for comparable electric service. If you have any questions or I may be of further assistance please feel free to call me at 221- 6718. Co- 1Py Planning end Environm:_,al Planning Department City of,Fort Collins October 12, 1992 Mr. Glen Johnson 3432 Carlton Ave. Fort Collins, CO 80525 Dear Mr. Johnson, rv.ces The purpose of this letter is to respond to your September 20, 1992, letter requesting additional provisions be included within the Annexation Agreement between the City of Fort Collins and Spring Creek Farms, Inc., regarding Spring Creek Farms' land.to be included within the Timberline Annexation. In addition, this letter will also include .comment Is from the City Attorney's office regarding your request of a waiver from the payment of urban improvements as long,as your land is farmed. I*will repeat your request and discuss how it is, or is -not, included within the Annexation Agreement. 1. The usual farming and feeding procedures will. not be interrupted by the City, including ditch burning, pesticide and herbicide applications by ground or air, and all noises, dust and odors associated with agriculture and feedlot operations. A new section, ,#3, has been added to the Agreement identifying the farming and feedlot operations as "existing uses" on the property to be annexed. The existing uses would include all normal noises, dust, and odors associated with agriculture and feedlot operations. The Agreement does not address, ditch burning and pesticide and herbicide applications because, as my February 6, 1992, letter to indicated, such items are currently covered by the Fire Code .of the Poudre Fire. Authority. The Fire Code is the same for-th"e-City and for the Fire District.. With regards to the burning of ditches, the area proposed for annexation is mostly. outside the open ditch burning restriction area so ditches can be burned without a permit. However, as the area develops it will be included within the, restricted area and a permit, will be required. Since the Fire Code applies equally to properties outside and inside the city limits, I made no changes to the Agreement regarding the issues of ditch burning and pesticide. applications. 2. Irrigation practices must not be hindered by any City procedures. The City notifies ditch companies of any pending development proposal which may have an impact on their irrigation systems. 281 :North Colle,_,eAvenue • P.O. Box 580 • Fort Collins, CO 80522-0580 • (303) 221-6750 1 I Ditch companies must sign -off on all development proposal utility plans submitted to the City. This. standard operating procedure, I believe, protects irrigation practices. Therefore, I have not made -any changes to the Agreement with regard to this.issue. 3. Protection of our hunting privileges and the right to lease hunting rights as it has been in.the past. Section 17-101 of the Code of the City of Fort Collins makes it illegal for anyone to discharge a firearm, bow and arrow, or any type of weapon inside of the city limits. An Agreement could not be signed by the City containing provisions which are contrary to 17-101. Therefore, unfortunately, the ability to lease hunting rights on your property would haveto cease after annexation. 4. We shall be consulted about any future master .planning of lands involved. In preparing new policies for the City's Comprehensive Plan, the City notifies and includes all property -owners which may be affected by such policies. For any development proposal, the City notifies all property -owners within 500 feet of the proposal as a matter of practice. Larger notification distances are used when more intense projects are proposed. Since these are standard operating procedures, I did not make any additions to the Agreement regarding this issue. 5. A special permit, good until total development, will be issued exempting Farms and operators from paying City sales tax on goods and services for normal, operations. Section 25-73 off the„ Code°of the City'of Fort Collins allows _ exemptions *from , City Sa,les.. Taxx orn terrffain� fa ela ed goods _ and services" including' purchases of feed:, feed supplents, andF drugs for. livestock' or41y; purchases F of seeds.,a•,_ ,plants, and fertilizeSr�s "fortcommercial' farming: and ranching, purchases ""o-f 4.y ii'•v"•i,. 'aJE$'n .. +kS1k t7M.`.w.,.b,+, m .. „ .. livestock andpoultry, and any existing automotive vehicles and' farm m�maach`"inervWN As in the case of firearms with. Section 17-101 cited above, an Agreement could not be signed by the City containing provisions which are contrary to 25-73,.therefore, I did not make any changes to the Agreement regarding City Sales Tax. 6. storm drainage fees, park fees and any other City imposed fees will not be assessedto any portion of the undeveloped lands and improvements. 3 As you know, Sections 1 and 2 of the Agreement relate to the waiver of the assessment of street fees related to urban development. The City Attorney's office indicates that. in. order to grant. this request the City would need to receive something in. return as a "quid pro quo" to the City to justify the waiver. The City Attorney's office suggests perhaps a dedication of arterial street rights -of -way along the perimeter on the annexed property to fulfill the "quid pro quo." A new sentence has been added to Section 1 to cover this requirement. As indicated in my February 6, letter, farm land is treated as undeveloped land and monthly storm drainage fees are not charged. A house located on farm land would be considered a typical single- family house with an 8,000 square foot lot and 40% impervious area for fee calculation purposes. Park fees and other such fees are "development" fees collected at the time of building permit requests. If a building permit is requested, the applicable fees will be assessed by the City. Again, since the request relates to standard operating procedures I did not make any changes to the Agreement regarding fees. I have attached a new draft version of the Annexation Agreement for your review. If you have further comments or questions, please feel free to contact me. City staff, including Paul Eckman from the City Attorney's office, is willing to meet with you and discuss any provisions of the draft annexation agreement. sincerely, Kenneth G. Waido Chief Planner K-2 ANNEXATION ISSUES: ■ , Sales Tax ■ Stormwater Fees K-2 Annexation and Zoning, #51-91B April 14, 1997 P & Z Meeting Page 3 The site includes a wholesale distribution business, two buildings being used for boat and RV storage, and agricultural feed sales on three separate parcels. Parcel one is owned by Matrix Investment Corporation, who uses the existing building for office and warehouse space for a wholesale distribution business. Parcel two is owned by Frank A. Just and contains the boat and RV storage use. Parcel three is owned by the A. L. Gilbert Company and the building on this parcel is occupied by Fort Collins Feed. The annexation will not create any non -conforming uses. All existing commercial signs must conform to the City's Sign Code at the end of a five-year amortization period. This annexation will not increase the total number of off -premise signs that currently exist in the City. 2.Zoning: This property is currently zoned I, Industrial (along frontage road) and FA-1, Farming (remainder of the area) in Larimer County. The proposed zoning for this annexation is the I, Industrial Zoning District. The Industrial District is intended to provide a location for a variety of work processes and work places such as manufacturing, warehousing and distributing, indoor and outdoor storage and a wide range of commercial and industrial operations. The surrounding area is zoned I, Industrial to the north, east and south and LMN, Low Density Mixed Use Neighborhood to the west across 1-25. The Industrial District designation is consistent with the City Structure Plan and is compatible with the existing uses and surrounding zoning. FINDINGS OF FACTICONCLUSION: 1._ The annexation of this area is consistent with the policies and agreements between Larimer County and the City of Fort Collins, as contained in the INTERGOVERNMENTAL AGREEMENT FOR THE FORT COLLINS URBAN GROWTH AREA. 2. The area meets all criteria included in State law to qualify for annexation by the City of Fort Collins. 3. The requested I, Industrial Zoning District is in conformance with the City Structure Plan. RECOMMENDATION: Staff recommends approval of the K-2 Annexation and I, Industrial Zoning. i OUT ig it : t S Lo N W H • H• Z_ sr ViNr. nolwo all 11 -- IL + OUT VICINITY MAP #51-91 B K-2 ANNEXATION AND ZONING 03/04/97 1"= 600' VICINITY MAP 03/04/97 #51-916 K-2 ANNEXATION AND ZONING 1p=2000• Commum y Planning and Environmental Services Current Planning City of Fort Collins TO: Planning and Zoning Board FROM: Bob Blanchard Current Current Planning Director DATE: April 4, 1997 SUBJECT: Timberline Enclave Annexation and Zoning, File No. 40-91 B K-2 Enclave Annexation and Zoning, File No. 51-91 B This memorandum is an addendum to the staff reports for these two agenda items that you received prior to the March 24, 1997 Board meeting. Maps of these proposed annexation areas as well as the proposed zoning are attached. Properties in unincorporated Larimer County become eligible for involuntary annexation once they have been completely surrounded by properties that have been within the City for at least three years. Both of these properties have been eligible for annexation for approximately 5'/z years: The property within the Timberline annexation area became eligible on August 16, 1991; and, the property within the K-2 annexation area became eligible on October 18, 1991. The City initiated involuntary annexation proceedings for both of these areas in 1992. However, Council elected not to annex them at that time. Current Planning staff have been in contact with all property owners from each of the annexation areas and met personally with either the property owners or their local - - representatives. A meeting was held on March 17, 1997 to provide the opportunity to meet with staff if individual meetings could not be scheduled. Major issues pertaining to potential annexation have been identified and are discussed below. Alan Krcmarik, the City's Financial Officer, has prepared a discussion paper outlining general financial issues that will impact properties annexed into the City (see Attachment 1). This memorandum identifies the primary differences in taxation, permitting requirements and licensing between the City of Fort Collins and Larimer County. As noted, with the exception of property taxes, there is a negative financial impact to property owners associated with annexation. In addition, Dennis Sumner, with Fort Collins Light and Power, has prepared a memorandum addressing conversion of electrical power in these annexation areas from Public Service Company to Light and Power. This memorandum notes that upon annexation, the City will assume responsibility for electric service, usually within two 281 North College Avenue • P.O. Box 580 • Fort Collins, CO 80522-0580 • (970) 221-6750 FAX (970) 221-6378 • TDD (970) 224-6002 Timberline Annexation and Zoning, #40-91 B K-2 Annexation and Zoning, #51-91 B April 14, 1997 Planning and Zoning Board Meeting Page 2 years of annexation. Light and Power pays all costs associated with the transfer - there is no cost to the customers. It also notes that in almost every instance, transferring electrical service to Light and Power results in lower costs. Timberline Enclave Annexation and Zoning, File # 40-91 B There are four property owners in this annexation area. They include Spring Creek Farms, Inc (Glen and Calvin Johnson), Cargill Foods,.Energy Coatings Co., Inc. (Bredero Price) and Timberline Star Properties, LLC. Spring Creek Farms The Spring Creek Farms is an active farm consisting of approximately 350 acres. The owners of the farm have identified a number of issues related to possible annexation into the City. These include pesticide application, storm water management, ditch maintenance, future urban improvements, sales tax and hunting leases. These are the same issues that were of concern during the 1993 annexation proceedings. Attachment 3 is a 1992 memorandum from City staff to the property owners addressing these issues. This discussion is still appropriate at this time. Proposed zoning on the Spring Creek Farm property is indicated on the attached map and consists of the LMN, Low Density Mixed Use Neighborhood; MMN, Medium Density Mixed Use Neighborhood; UE, Urban Estates; and the NC, Neighborhood Commercial districts on property to the east of Timberline Road and the E, Employment district on property west of Timberline Road. These zoning recommendations are consistent with the City Structure Plan. Bredero Price Bredero Price is a pipe coating company located west of Timberline Road and north of Spring Creek Farms. Primary issues regarding annexation include the provision of electric power, compliance with the noise ordinance and the City's sales and use tax. The major concern is both the cost and reliability of converting electric service from Public Service Company to Fort Collins Light and Power. Electrical bills for this company totaled over $297,000.00 in 1996. It is estimated that it could be ,approximately $324,000.00 in 1997. Concern was raised in 1992 that converting to Light and Power for electrical service could increase the cost and possibly result in less reliable service (i.e. increased incidence of interrupted power resulting in down time for production). Attachment A, which includes both a summary memorandum regarding the provision of electrical service to annexed area (and a section specific to Bredero Timberline Annexation and Zoning, #40-91 B K-2 Annexation and Zoning, #51-91B April 14, 1997 Planning and Zoning Board Meeting Page 3 Price) as well as a second memorandum from Dennis Sumner to the Bredero Price plant manager, indicates that Light and Power can provide comparable service at a lower price than Public Service. Because the operation involves moving pipe around as part of the coating operation, there is a substantial amount of noise, especially when pipe is occasionally dropped. The City has erroneously received complaints from neighbors to the west in the Parkwood East Subdivision who thought the company was currently located in the City. Upon annexation, the company will have to comply with the City's noise ordinance which is enforced by the Police Department. Larimer County does not have a noise ordinance. Timberline Star Properties Timberline Star Properties is located directly north of Bredero Price at the former site of the Fort Collins Pipe Company. Uses on this site are varied and including such things as contractors businesses, auto parts supply and a jujitsu self defense school. Property owners have cited similar concerns to others in this area including electrical power and sales and use taxes. In addition, it was noted that these properties are not legal building lots as defined by the City - they all have metes and bounds legal descriptions. The concern is whether the City would require them to plat and create a legal lot at the time of annexation. Information provided by the Zoning Administrator indicated that a plat would not be required at annexation but would be needed if: • an additional principal building was added; • a change of use occurred on the property; or, • there was a non-residential addition that increased the floor area greater -- than 25%. - - - - Cargill Foods Cargill Foods is an agricultural research station that is located on the north side of Drake Road east of Timberline Road. Primary concerns related by the company include pesticide application, the ability to continue agricultural operations, night lighting and wild animal control (especially raccoons). Agricultural operations are not limited by annexation into the City. They would be allowed to continue under any of the proposed zoning districts. The City has no regulations concerning the use of pesticides so their continued use is permitted. This includes the potential of aerial application which the company has indicated they use on the average of twice each year. Their are no regulations addressing wild animal control in the City. Timberline Annexation and Zoning, #40-91 B K-2 Annexation and Zoning, #51-91B April 14, 1997 Planning and Zoning Board Meeting Page 4 K-2 Enclave Annexation and Zoning, File #51-916 There are three property owners included in this annexation area. They include David Ball (HUB Enterprises), Frank Just and the A. L. Gilbert Company (Fort Collins Feed). HUB Enterprises HUB Enterprises is a manufacturing and wholesale distribution company located on the east side of the frontage road, north of Vine Drive and east of 1-25. Mr. Ball has indicated his primary concern is whether subdivision of the land would require the extension of the sewer line from the south. This area is in the ELCO Water District and the Boxelder Sanitation District service areas and is not served by the City. Extension of the sewer could be triggered by actual development of a specific user. It is doubtful that the simple subdivision of land would require extension of the sewer.. Fort Collins Feed Fort Collins Feed is an agricultural feed sales operation located in the southeastern portion of the enclave. Issues of concern relate to the City's sales and use taxes. The company uses a significant amount of fuel each month which they are concerned would become subject to City sales taxes. It also makes use of computers and large trucks that are provided from their home office in California are subject to the City's use tax. Commercial and industrial uses that purchase items for which no Colorado city sales tax has been paid, will be subject to the 3% use tax. In the case of this user, -the -use tax would apply to their trucks and computers. Any used items subject to the use tax will be taxed on the current market value. The State precludes cities from taxing fuel. Therefore, gasoline purchases are taxed equally whether the user is located in the City or the County. Frank Just Mr. Just's property is currently used for boat and recreational vehicle storage. Issues of concern include conversion of electrical power and City taxes. Responses to these concerns have been addressed above.