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HomeMy WebLinkAbout2007 Ordinance No. 055• • • ORDINANCE NO . ~ SERIES OF 2007 -- BY AUTHORITY COUNCIL BILL NO . 56 INTRODUCED BY COUNCIL MEMBER TOMASSO t;, 'ORDINANCE AUTHORIZING THE PURCHASE AND LEASE BACK OF F Ai \.MI ,AND LOCATED 25 MILES EAST OF BYERS, COLORADO TO BE USED AS A LO NG-TERM , BENEFICIAL USE, APPLICATION SITE FOR BIOSOLIDS PROD L!CED BY LITTLETON/ENGLEWOOD WASTEWATER TREATMENT PL ,..Nt. :.V HEREAS, in 1995/96 the Englewood City Council approved the purchase of 6,400 ac fe • 0 i fannland approximately 25 miles east of Byers , Colorado to be used as a long-term, ',enefic,,I use, applicat ion site for biosolids produced by the Littleton/Engl ewood Waste·.;ater Treatment Plant ; and WHEREAS, in November of 2006, the Littleton/Englewood Wastewater Treatment Plant was ,ontacted regarding the Plant's interest in purchasing 1,270 acres of dryland farm property adjacent to our currently owned property ; and WHEREAS, thi s purchase will provide additional acreage for the beneficial use of the wastewater biosolids thus extending our application site life, based on regulatory li mitations ; and WHEREAS, the proposal was discussed with the Littleton/Englewood Wastewater Treatment Plant Supervisory Committee and approval was given to proceed with securing an option purchase ar :eement on the property subject to approval of Englewood and Littleton City Councils ; and WHEREAS , funds for the purchase price of $550,000 , although not a budgeted expenditure for 2007, are available in the respective Cities' sewer funds, with the cost shared 50/50 by the Cities of Englewood and Littleton; therefore Englewood's share will be $275 ,000 of the total purchase price ; and WHEREAS , the property will be leased back to the current owner for a period of 5 years; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCil. OF THE CITY OF ENGLEWOOD, COLORADO, AS FOLLOWS: Section I. The City Council of the City of Englewood, Colorado hereby approves the purchase and lease back of 1,27 0 acres of property for $550,000; the cost of which is to be shared with the City of Littleton with the City of Englewood's share being $275 ,000 . -1 - 11 b ii Scc1jon 2. The Mayor and City Clerk are authorized 10 sign and allcst all agrccmcn is in crn mcction with 1he purcha se and leas e for an d on behalf nf lhc Ci ty of Englewood. In troduced, read in fu ll . and passed nn firs! rc.::tdi ng on 1hc I st d:1y nl' Oc1ohc r, ~00 7. Puhli shcd ns n Bill liw an Ordinance on the 5111 cl:iy ol'Oc tohcr. ~0 07 . Rend hy title and pnsscd on final rending on lh e 15th day ofOc1o bc r, 2007 . l'u hli shcd hy ti tle as Ordinan ce No. %:"s eri es of 2007, on lhc 19" day of October, 2007, I. Loucrishia A. Ell is, Ci1 y Cle rk of the L'i 1y of Engl ewood. l'olorad o. hereby ec ru I)' 1hat th e ahov•; and lim.:gni ng. is 11 1111S,s,!lP Y of th e Ordin ance p;1s scd on finn l n.:ading and pu hl ishcd by titlt· :1s On linam:c No .~. Scrics of 2007 . -2 - • • • • COUNCIL COMMUNICATION Date: I Agenda Item: I Subject: October 1, 200 7 11 a I Blosollds -Beneficial Use, Farm Land Purchase Initiated By: Staff Source: L/E WWTP Supervisory Committee Stewart H. Fonda, Utilities Director Jim Tallent -Operations Division Manager COUNCIL GOAL AND PREVIOUS COUNCIL ACTION In 1995/96, Council approved the purchase of 6,400 acres of farmland approximatel y 25 miles east of Byers, Colorado to be used as a long-term, beneficial use, application site for biosolids produced by the Littleton/Englewood WWTP. RECOMMENDED ACTION The Littleton/Englewood Supvervisory Committee recommends that Council adopt a Bill for an Ordinance to approve the execution of the option agreement to purchase of 1,270 acres immediatel y adjacent to our current biosolids applicatio n site . BACKGROUND, ANALYSIS, AND ALTERNATIVES IDENTIFIED In 199 5 and 1996, the Littleton /En gle" ood WWTP was granted approval by the Cities of Engle wood and Littleton to purchase a total of 6,400 acres of dryland farm property to be used for long-term application of biosolids generated by the facility. T~.ese sites were selected based on criteria established by regulatory requirements . In November of 2006, the L/E WWTP was contacted to inquire of inte rest in pu rchasing 1,270 acres of dryland farm property adjacent to our currently owned property. There are approximately 801 acres in dry land farm us e and 464 acres in pas :are, used to graze cattle. Cursory review indicates all this acreage is suitable for wastewater bi ,,solids application . A map of the proposed site is atta ched. The benefi • of this purchas e is that it will provide aaditional acreage for the beneficial use of wastewater biosolids, extending our application site life, based on regulatory limitations . The proposal was discussed with the L/E WWT~ Supervisory Committee and approval was given to proceed with securing an opt ion purchase agreement on the property subject to approval of Englewood and Littleton City Councils . FINANCIAL IMPACT In order to obtain an option to purchase this property an option payment of $82 ,500 will be required upon execution of the option •:;reement At closing, 100% of the option payment will be credited against the total purchase price of $550,000. Aithough not a budgeted expenditure for • 2007, sufficient funds are available In respective Cities sewer funds . The cost of this expenditure will be shared 50/50 by the Cities of Englewood and Littleton ; therefore Englewood will be responsible for $41 ,250 of the option paymen~ and $275,000 of the total purchase price . LIST OF ATTACHMENTS Original Land Sale Proposal Meler Property Map Option Agreement Bill for an Ordinance • • • • • TO : LITTLETON/ENGLEWOOD WASTEWATER TREATMENT PLANT 2900 S. PLATTE RIVER DRIVE ENGLEWOOD CO . 80110 FROM : GARY AND NANCY ME.IER 3265 SCR 185 BYERS , CO. 80103 303-822-5858 E-MAIL : JTALLENT@ENGLEWOODGOV .ORG CC. MEIER@NETECIN.NET RE : THE PURCHASE FARM AND GR Al tAPAHOE COUNTYS JIM , LAND IN EASTERN ADAMS AND PER OUR CONVERSATION , A PURCHASE PRICE OF $550 ,00t: JO FOR THE 1270.63 ACRES. THE BREAK-DOWN IS : 801.0 DRY LAND FARM , AND 464 .63 PASTURE . THE ADAMS COUNTY PORTION IS 311 ACRES (E ½ S 33 3S 57W). THE ARAPAHOE COUNTY PORTION IS, 319 ACRES (W½ S8 4S 57W), 640 ACRES (SI 7 4S 57W). ADDITIONAL THINGS WE NEED TO ADDRESS ARE. I-RADIO REPEATER TOWER 2-MINERAL RIGHT 3-LEASE BACK 4-GOVERNMENTPROGRAMS A-CSP B-EQUIP C-PRODUCTION FLESIBILITY ACRES 11a1 ................... C>2004Dol..onno. TapoU8M5.0. --- 16 S-1.and \. } / I lo,oUIMt.o 1...- > l r - ( \ • • OPTION AGREEMENT THIS OPTION AG RE EMENT ("Agreement") is entered into by the Parties this_ day of October , 2007 , by and betwee n Gary C. Meier and Nancy L. Meier (a lso known as Nancy Lynn Meier), whose address for the purposes of the agreement is _________ _ (hereinafter, "Selle r"), and the Ci ty o f Littleton , Colorado and the City of Englewood, Colorado (hereinafter. jointly referred to as "Purchaser"). Pursuant to this Agreeme nt the Ci ti es shall pay to Guaranty Bank the interest due on the Seller's promissory note to said Bank in the amount of$82,500.00 ("Intere st Payment "), and the Seller hereby give s and grants to Purchaser ,he exclusive option to purchase the followi,;;; described property: Section I 7 and the W/2 of Section 8, Township 4 South , Range 5" West of the 6th P.M ., Arapahoe County Colorado; and the E/2 of Section 33 , Tm,nship 3 South , Range 57 West of the 6th P.M., Adams County, Colorado , comprising a total of 1270.63 acres, more or less , toge ther with all improvements thereon (the "Prop-:,.1y"). On execution of this Option Agreement , Hichaser shall have the ri ~ht to enter upon the Property and perform at Purchaser 's expense, so il tests, surveys , inspection~ and environmental assessments as the Purchaser deems necessary . Purchaser and Purchaser 's employees and agents are hereby granted the right on ingress and egress on and across the Property for the purpose of performing the above-described acts ; provided that Seller is given notice at least two days in advance. If Purchaser decid es to purchase the Property , Purchaser must notify Seller on or before December 15 , 2007 , which notice must be in writing and sent by registered or certified mail or delivered personally . The tot al purchase price of the property shall be $550 ,000 .00 which shall be paid at closing ; provided, however that the Interest Payment shall be credited against the purchase price . If the option is not exercised on or before the above date , the Intere st Payment paid hereunder will not be refunded to Purchaser . In the event the option is exercised , the Property will be transferred and the closing will take place upon the following terms and conditions : I . The purchase price will include all fixtures and appurtenances , including but not limited to, all buildings , out buildings, barns , silos, currently on the Property , all in th eir present condition, free and clear of all en cumbrances . 2. Purchaser shall obtain a title insuran::e policy after the closing 8ild pay the premium thereon . 3. Closing shall occur within sixty (60 days) of the exercise of the option . The time and place of closing shall be designated by the Purchaser. At closing Seller shall convey merchantable title by a good and sufficient general warranty deed, free and clear of all taxes aod encumbrances . 4. Taxes, as determined by the current levy and assessment, and all pre-paid items shall be apportioned to the date of closing when the deed and possession of the property shall be delivered to Purchaser . 5. In the event Seller defaults under the terms and conditions hereof, the Purchaser shall have the right to an action for specific performance of this contract. In the event a civil action is filed regarding the terms of this contract, the prevailing party shall be entitled to recover all costs and expenses, including reasonabl e attorney's fees . 6. Simultaneously with dosmg and transfer of title to Purchaser, Purchaser shall execute and deliver to Seller a leaseb«ck of the Property in form and content as set forth in Exhibit A, attached hereto . Gary C. Meier CITY OF LITTLETON By :_,--,-_______ _ Mayor ATTEST :--,,-,-,--,------ City Clerk 2 Nancy L. Meier CITY OF ENGLEWOOD By:---------- Mayor ATIEST: __ ,--,-,-------- City Clerk • • • • • • EXIIIBIT A FARM LEASE THIILEASEillllldoood-.d inlobyood-dloCillooof~oodEqltwood,,ollodi .. lyroforndlO berelnafteru"Uwl.euor",md...,.....,,,.....,,..-,--,-,-,---:-,.....,,,''lhll.mN. OndlUda9,dwtLMor,-i.Ndtodll 1Maee,tblf0Uowmcdlleribed,..._,,11u11,dla .. CoundeldAnplhoe.Sll&lofColondo,10WU: toatdMf wilh Ill blllldlllp lftd ~ an ttie ... (ncepc • barinafttr menttaoed) fortht &erm ofooc (I) y.-, 11111Wlb~.....ilybfl,.(5),...._lna"'-~=~~~~(daw~,nd..,ina"' -..,_---,-i ________ (dllO)~dlo,..orll.00(,ipldoiiln)p,racnp,r)"'too"°P-. L.._ Thi l'ltll b lO bt pl6d Of' •Uwrtd, • tillowt: by J•-,, IS (folJowin& lht crop P'OWft) of each year that 11w leuc Is In cfl'oct. The Lneor-lbt rollowina _.,,_ lo WIC NIA lliet.e.N..-•~kMI: 111. TodlorouiW)'plow,Nllfvlllnlbln1b-liuffllMCf,allllndsuponllidpmnl,anotlnt1meorwlld..,_ aria..._. lnd. To• MMI ,,_... u 1 ~ llltd &nn and for no otherpurpoN wballOCvu, IDd cspcdally will noc ltC sakl p,IININorpenntltht111Mtobel&Ndfor1nyWUflwt\ilbusinmorpvrl)Oltwhlrsoewr. 3rd. NollDNll, ..... ...._arrtlmqwlblliclpmnbawithouldlewriuenCCNeDtof'thel..aaof,ialderthcpmaltyof aforfrillno(a1ldwrfltaofdleLOINe\mdlror byvirtutofthbleue.attbc etectlonofthtl.mor, ◄Ill. To ...,i 111d prop,ny, bulidillp, p1e1, r,oca, ..,.., wubber)', and "'bont ri.m .i1 damqe,; io kocp lhe buUdlnp. ...... pin IDd r.. In a aood repair u the wne now art,« may bt It lft)' timt placed In by the Lcuor; IO do no ICC w.-.1,y any lmlnDC4I on bulldinas may be tavaUdattd; not 10 mnove no, allow any other pen.an IO mnovt &om aid .. ._,..be, 111y of the fencu, bulldlnp, trca, shrubbery, or Ill)' oftbe improvtments of .. yk!Dd. 5th. No f'unowt lhall be Nn IOU IOQUle ditches 10 wuh said pmnLlts. wiktt first havlna a wriam COI\IUII oftht Lmor. To clean out and malnl&in In aood repair, dwin1 the opentlon orthll Leue, 111 ditches belonalna or ~ tolbl lbova dacrlbed land. 61h , To well and leUOOably put ID IOd lend to said crops ; 10 hive all small pain thtabed by October I or each yem; and lfnoi duabtd or cribbed u stated, the Lessor m11yproceed IO do 10 after Im (10) days ootlce to the Leutt, and take enoqh of the l.cuee'1 pin to pay expense or ,uch ptherin; or btn-ntin&, or lhrahin&: tha1 the tame: or wild arw b 10 be: well hlrvated and takm care: or: tbll no youna or pvwlna timbtr b to be: eu1 or 1Jled which b now arowtna on Slid pRmba: that no rails, boards or polU m 10 be: ustd or appropriated u fuel or othtf ......... 11h. To acupt !ht fc:nces upon said leucd pmnbct u they now an.exillin& llh. Thlt al the expinllon ofthb I.Aue, or upon• breach by the Le:1sc:e ohny of the covenanu hffl:in contained, wilhoul l'unba' nodct of any kind. io quit and 1ll'Ttndtr the J)OIMlllon and o«upancy or wd premises In u aood condition u caref\11 111e and natural w• and decay thcteorwill permit. 9lh. Thal 1ll 1oodl and chattels, or any ocher pn,pa1)' used or kcpC on u.ld prembc:a. lhall be btld for the rent or damaata undn dw Leue. _..., wmpc ltomtxacudonorQOl. rneuiq or lnlffldlq htrebyto &ivelhe Leuor • valid and ftnt lien upon uy llftd all aoodl and cbaaelt, crops and ochtr propc:ny belonaina to the Lasee: 10th. It LI t\lnhcrtped: ThllUIIM lhlllc:uldvale Rlmd any struco.n1or facllltic:t CONINCted by Lfflorand where ,,,.,u,.i,~,...i....ii ... ~1-·,~•r.,.,,_,,_bioooUds""'ilcodoo, Toel.a1or raerws !he ript .,cancel Iha.._ cuirllib 11:rffl ror any of the f'oUowinlreuom : 1) lftbe UIIOI lhowdtakeany actionor&il.,tlktlftYICdoalhll._theLeuor'1lncatlllntbepropeny,mctudlfta the~nofany en.....-lllWl,rulot, .......... m-; b)i(lllel.-lhouldtilitoebldebyllleLaaor'1...-, ~-----inllle..U;,)i(lllel.-o-in•--l-llle lAuor'•ebiiily IO'l'P~bioooUdsDdloP"'P'II)'; d)i(dlo1-ono< ...... m1,.._lllel_pdlkn!• .. pndka; e)WlllelAa«-lbalkwillnoioaprUliliaallmpa,ofdlo-bdlopnl<O<donofo,,... llb mdenloodaad..,.edchlllhlt...orr111rW1lblripltocanctllhit.._ll ibdtdilcntlon. ShouHt..ortlecl '°"°'"'iCu(plof_iC_do"',in ....... Mioalllildy(60)day,pric>rDdlo0MJ""_,,dllO baoo(,ilwtlldl,_~-....i)ba---CNldlo..,.,.,,dllOllld-panyoballba.ulad tofta1herpaymmbor .... •lhtr-itof-'dtnunldonllC!lplb1QYPl)'fflallldlteandow-.i11lhllmo( -11th, 111a1a11.--111o1-eball-duellld,,.,,......,,..rrilllnorNidi-,m.,_., .. uid ,..,,...,a11r11-_,,11w111oi..-.,..._.....,.n.,....,._,a1on,-,..,_111o i.-_ .. poy,--..y,r..dlonlon,mdall _ _..... .... __ 121h. h ■-,...ilbalH11md--•eoldm,_., __ lbrlba)'lalof .. ,_Mld -mbuyer..Ulw¥ldle~ooao11111idllad,-l'l!llirl,lllplow,m--ln•lll•r•~ )'W, llth 11lll_...,,ba_.,..iby1-ooly..,,.._.,._.iufl.-;povidodlbal1-la)'•"WI._ _ _,_,, ____ _,1-,mdOuMmoy-••--ofalloflbr-11111 _., .. __ _ ..., ................. ~ml-•ofmy ..... ba ............... 11111 __ _ .. ____________ ( ... ;, ....,......lkJ-k.0..,CO--()IJ)ffl.Ull-nw