HomeMy WebLinkAboutBOCC Packet 12272010PITHIN COUNTY COMMISSIONERS
AGENDA
Plaza One Meeting Room
MONDAY, DECEMBER 27. 2010 (no filmine)
2:00
✓3:00
3:30
SPECIAL MEETING
Joint Executive Session with Open Space & Trails Board
Property Acquisition — Droste
CRS 24-6-402 (4)
(a) acquisitions
(b) conference with attorney
(e) negotiations
ADJOURN EXECUTIVE SESSION
Emergency Ordinance Authorizing Droste Open Space Purchase, Dale Will
Open Discussion
ADJOURN SPECIAL MEETING
AGENDA SUBJECT TO CHANGE
AGENDA ITEM SUMMARY
MEETING DATE: December 27, 2010
AGENDA ITEM TITLE: AN EMERGENCY ORDINANCE AUTHORIZING DROSTE
PROPERTY ACQUISITIONS.
STAFF RESPONSIBLE: Dale Will
SUMMARY OF ISSUE: Peter and Bruce Droste have signed a contract to sell
approximately 841 acres, as well as a trail easement and an access easement, for $17,OOQ000.
This contract has a contingency for fund raising until December 27, 2010, and is also
dependant on the BOCC's adoption of an Ordinance authorizing the deal.
BACKGROUND: The Droste lands comprise a nearly two mile long ridgeline reaching
from Seven Staz, past the Airport Radar, to Cozy Point South. This ridgeline is visible from
many points in the upper Roaring Fork Valley including west Aspen, Snowmass Village, the
Owl Creek, Brush Creek, and Highway 82 corridors, the upper Rio Grande Trail, etc. The
land hosts critical winter elk habitat. The acquisition also provides a extraordinary summer
recreational ameniry. The land would make possible an "Aspen to Snowmass TraiP' with
portals at Owl Creek above the Airport Operations Center, at the Snowmass Cemetery in
Hidden Valley, and at Cozy Point South. Such a trail would enhance the quality of life for
equestrians, mountain bikers, and hikers, while adding public value to our collection of
existing open space lands around the parameter.
Acquisition of this property would also provide the centerpiece to a long series of adjacent
open space investments by Pitkin County, the City of Aspen, and Snowmass Village. As
chronicled below, these acquisitions began in earnest with Snowmass's acquisition of North
Mesa in 1991. Since that time, the three jurisdictions have acquired outright over 1500 acres
of open space lands between the Snowmass and Cozy Point, along with another 662 acres in
conservation easements.
As you are aware, the Droste lands recently received approvals for development of 9 large
homes, serviced by a three mile long access road to wind up the ridge from Brush Creek.
The proposed contract would eliminate all the new development sites, while the existing
house on Parcel 10 in the valley floor will remain, along with the PUD's grant of the right to
rebuild that up to 10,000 ft. sq. The purchase price of $17,000,000 is significantly less than
a recent $19-21 million appraisal by Hunsperger and Weston Ltd.
The County has raised significant contributions toward this purchase. As of December 20,
we have raised $5,500,000 in public funds.
Great Outdoors Colorado
Town of Snowmass Village
CiTy of Aspen
$2,500,000
$2,000,000
$1,000,000
GOCO can pay out its contribution in one lump, which the County can collect within 30 days
of submitting all required due diligence materials. In contrast, Snowmass is authorized to
reimburse the County over seven years with $200k for the first five years, and $SOOk for the
next two years thereafter. Aspen has stated it will reimburse the County $250k per year for
four years.
In addition, we have a fundraising effort that is ongoing. The Aspen Valley Land Trust has
offered $250,000 in matching grant funds. As of December 20, 2010, we have one firm
private commitment of $100,000. Hence, as of December 20, 2010, combined with the
AVLT match, the total raised is $5.7 million. On December 2, 2010, the Open Space Board
recommended an expenditure of $10,000,000 toward this purchase. Hence, we are presently
$1.3 million short of the funds needed based on this recommendation. We plan to continue
our fundraising efforts after any closing. However, it will likely be harder to raise funds
after this occurs.
In 2006, the Open Space program was authorized to bond up $20m, in addition to
approximately $3m remaining from prior elections, for a total current authorization of $23m.
The program has not utilized any of the 2006 bond authorization to date.
None of the outside contributions are available at the closing set for December 29, 2010, and
we therefore need to appropriate the entire $17,000,000. Tom Oken has advised that these
funds will be covered by a combination of the existing balance in the Open Space Fund, and
a short term loan from the County General Fund that will be repaid in the first quarter of
2011 through reimbursements from GOCO, Snowmass, and Aspen plus sales of the
$] 0,000,000 in bonds that were authorized by the BOCC on December 1, 2010. We would
anticipate that the $2.Sm GOCO funds can be reimbursed to the County by the end of
January, based on our present closing date. Both Snowmass and Aspen plan to make annual
payments in the first month of each year, which will be an additional $200k and $250k in
January respectively, for a total of $2.95m in public funds that can be recovered within about
one month of the proposed closing. Our anangements for collection of the other private
contributions are continuing to evolve and staff will update the OSTB and BOCC when these
arrangements are finalized.
LINK TO STRATEGIC PLAN: This acquisition meets the CounTy's goal to preserve
recreational resources, scenery and habitat in Pitkin County. Further by partnering with the
City of Aspen, Town of Snowmass Village, and GOCO, this project fixlfills the County's
goals for regionalism and for advancing fiscal responsibility through partnerships.
KEY DISCUSSION ITEMS (ALTERNATIVES): The alternative to this project would be
not to consumtnate the contract pursuant to the contractual financing contingency that
authorizes until 12/27/10 termination of the contract with a full refund of the $100k earnest
money to the County.
BUDGETARY IMPACT: The attached Ordinance will amend the Open Space Budget to
authorize the expenditure needed for this purchase. The $17m can be funded by a
combination of our existing fund balance plus a$lOm bond sale in the next quarter (a short
term loan from the General Fund will bridge the timing.). The debt service on this bond
issue will absorb approximately $600,000 annually for 30 yeazs, from an annual fund revenue
presently at approximately $123 million. This debt service can be sustained without a
reduction in current Open Space services, but will somewhat decrease the annual new project
capacity.
RECOMMENDED BOCC ACTION: Staff recommends that the Open Space Board and
Board of County Commissioners approve the attached Emergency Ordinance appropriating
$17,100,000 for the closing on December 29, 2010.
ATTACHMENTS: Ordinance, Appendix 1, History of Brush Creek Conservation
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HISTORY OP BRUSH CREEK CONSERVATION:
1991 TOSV acquires North Mesa: 649 acres from Snowmass Land Company in coqjunct�on �vith developmen[
approvals for the Horse Ranch Subdivision.
"I'OTAL ACREAG�: CONSERV�:U - 649
1994 TOSV acquires Hidden Valley. 213 acres from Snowmass Land Cumpany in conjunction w�th developmen[
approvals.
TOTAI.:ACREAGF, COtiSERVED - SG2
1995 POST acquires Seven Star Ranch I: 145 acres in fee and 60 acres under conserva[ion easement for $ I,400,000.
For the I S years foilowmg acquisition, POST has transformed the property from a[histle patch to native dryland
vegetation.
'fOTAL ACRN;.4CE CONSEItVED— 1,069 {1,007 P'ce/60 CE)
1996 POST acquirzs Droste I Conservation Easement: 99 acres for $480,000 in our tirst attempt to protect the Droste
Ranch.
'POTAL ACREAGE CONSERV ED — 1,166 I t,007 Fee/759 CF.)
1999 TOSV and POST acquire the Dros[e II Conservation Easement: 503 acres of the Bmsh Creek Ranch (421 acres
of this CE is included in the proposed acquisition) for $7,500,000. TOSV negotiated [his acyuis�tion to protect
the valley floor, and passed a bond to fund [heir porl�on of the purchase.
City of Aspen purchased Cozy Point Ranch; 168 acres for $2,700,000. The property hosts a City run eques[rian
faciliry (the onty public owned equestrian facility in the valky) and a public archery range. The land is Ieased for
cattle grazing and hay product�on. Fronting two miles of S[ate H�ghway 82, Ihe proper[y is a key component to
the pastoral se[ting in the upper Roaring Fork valley.
'f07'AL ACREACE COtiSE121'EU— I,R37 (1.175 Fee!(62 CE)
2004 POST acquires Seven Star fI: 232 acres, for $5,345,000 with ass�stance from a GOCO opzn space grant A
conservation easemen[ to the benefit of AVLT ovedays the property. Since purohasing the property, the valley
floor has been transformed from an abandoned hayfield [o wetlands, wi[h [he help of some beavers. POST even
employed the assistance of a beaver whisperer, who installed a"beaver deceiver", to help manage the return of
beavers to the valley without disrupting lhe operations of the ditch headga[e that serves the downstream
propert�es.
'PO'fAL ACRE:ICE CONSERV F,D — 2,069 (1,407 reel661 C G)
2005 POST purchased Cozy Point South� 135 acres, for $?,750,000 again with the help of a GOCO open space grant,
as well as TOSV and C�ty of Aspen. The property �s encumbered by a conservation easement to AVLT. The
valley floor is leased for hay production, consistent with its h�storical use
POST, Pitkin County, TOSV, Aspen par[nered [o stop the installation of an above ground transmission hne up the
Brush Creek Valley. Holy Cross Energy proposed 90 foot towers along the lands that these agencies worked so
hurd to preservz. Hoty Cross ended up putting the line underground, preservmg the sceme value of the corridor.
TOTAL ACRF,AGE COti SERV F D— 2,204 (1,542 Fce/662 CE�
?006 POST constructs the Brush Creek Trail, a long awaited connection behveen TOSV and the Rw Grande Tra�l. The
trail prov�des public access along the frontage of many of these preserved lands.
AN EMERGENCY ORDINANCE OF THE
BOARD OF COUNTY COMMISSIONERS
OF PITHIN COUNTY, COLORADO, AUTHORIZING DROSTE PROPERTY
ACQUISITIONS.
ORDINANCE # , SERIES OF 2010
RECITALS
1. The Voters of Pitkin County and the Pitkin CounTy Commissioners established an Open
Space and Trails Fund for the purposes of preserving and providing open space and trails
resources in Pitkin County, and established an Open Space and Trails Board of Trustees to
guide the expenditure of those funds.
2. The Open Space and Trails Program is charged with protecting agriculture, open space,
habitat, scenic view planes, and recreational routes on public lands.
3. The Droste property of approximately 841 acres (the "Property") lies in unincorporated
Pitkin County, and possesses important natural, wildlife, scenic, recreational, and
agricultural values.
4. Development of the Property would result in loss of important habitat, would degrade the
scenery of the Brush Creek comdor, and would forever block the possibility of public
access on the ridge between Seven Staz and Cozy Point.
5. The 841 acre Property comprises a nearly two mile long ridgeline reaching from Seven
Staz, past the Airport Radar, to Cozy Point South, the conservation of which will
dramatically enhance the health and welfare of Pitkin County citizens and visiters.
6. The Open Space and Trails Board supports the fully executed contract to purchase the
Property and recommends an initial expenditure of $17,000,000 of Open Space funds, with
an anticipated repayment of $2,500,000 from GOCq $2,000,000 from Snowmass Village,
$1,000,000 from the City of Aspen, and such additional funds as may be raised publically or
privately for this project, and the anticipated maintenance thereof.
NOW THEREFORE BE IT ORDAINED by the Board of County
Commissioners of Pitkin County, Colorado, that:
1. The Boazd approves an expenditure of $17,000,000 for the purchase of the
Droste Property and related Easements, plus up to $100,000 for any transaction
expenses.
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2. After acquiring the property, the County may convey a conservation easement to
Aspen Valley Land Trust, the Ciry of Aspen and/or another mutually agreed upon
qualified organization, as provided for under the Pitkin County Home Rule Charter
Article 13.53.
3. The Board hereby declares its official intent to reimburse cunent expenditures
from a future issuance of Pitkin County general obligation bonds. The
maximum amount of bonds expected to be issued for this project is
$10,000,000.
4. That adjustrnents be made to the yeaz 2010 budget as follows:
OPEN SPACE AND TRAILS FUND
Previous Revised
Bud¢et This Chanee Proi Bud¢et
Droste Pronertv Acquisition
Expenditure
$500,000 $16,600,000 $17,100,000
5. That adjustments be made to the year 2011 budget as follows:
OPEN SPACE AND TRAILS FUND
Previous
Budget This Change
Droste Pronertv Acauisition
Revenues
Bond Proceeds
GOCO Grant
City of Aspen contribution ($1 million over 4 years)
Snowmass contribution ($2 million over 7 years)
Other contributions
$10,000,000
2,500,000
250,000
200,000
1,500,000
$14,450,000
�
Revised
Proi Budget
$10,000,000
2,500,000
250,000
200,000
1,500.000
$14,450,000
Expenditures
Bond issuance costs $102,500 $102,500
The BOCC finds that adoption of this emergency ordinance is necessary to secure the
Droste Property and related Easements for the immediate preservation of the public
health, safety and welfare of the citizens of Pitkin County and therefore declares this
ordinance and legislation to be effective immediately.
INTRODUCED, FIRST READ, AND APPROVED ON THE 27th DAY OF
December, 2010.
�
NOTICE OF PUBLIC HEARING PUBLISHED IN THE ASPEN TIMES
WEEKLY ON THE DAY OF 2010.
CONFIRMED UPON SECOND READING AND PUBLIC HEARING ON
THE
PUBLISHED AFTER ADOPTION IN THE WEEKEND EDITION OF THE
ASPEN TIMES ON THE DAY OF , 2010.
ATTEST:
BOARD OF COUNTY COMMISSIONERS
OF PITKIN COUNTY, COLORADO
Jeanette Jones
Deputy Clerk
APPROVED AS TO FORM:
John Ely
County Attorney
Dale Will, Director
Open Space and Trails Program
thdin<<ncc -2ta1i1
George Newman
Chair
Date:
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