Title
A Resolution Authorizing the Acquisition of Approximately 8.48 acres of Property located at 1819 West Cheyenne Road in Partnership with the Golden Lotus Foundation for the purpose of a Public Park
This item will be heard at 1:00 PM
Presenter:
Karen Palus, Parks, Recreation and Cultural Services Department Director
Matt Mayberry, Cultural Services Manager
Britt Haley, Parks Design and Development Manager
Body
Summary:
This is a proposal to use approximately $2.3 million in park land dedication ordinance fees to purchase a historically significant 8.48-acre neighborhood park site and its facilities in partnership with the Golden Lotus Foundation. This property is located at 1819 West Cheyenne Road on the southwest side of the City.
Background:
The Parks, Recreation and Cultural Services Department (Parks) became aware of the desire of a private philanthropic organization, called the P.E.O. Sisterhood Chapter House (Owners), to sell their 8.48-acre property which had been a city park historically. The site is designed like a park, offering natural surface walking trails, old growth ponderosa pines and other species of trees, grassy areas, a spring-fed pond with water lilies and aeration, a former ball field, the historic rock wall of Stratton Park, and Cheyenne Creek which meanders along the length of the northern boundary of the property.
The Owners had used the property as an independent living facility for P.E.O. Sisterhood retirees. In addition to the park elements, it has a single story, approximately 12,401 square foot building, with offices, a sunroom, a library, 10 apartments- most with patios facing a courtyard, a group living/dining room and a small commercial style kitchen. Attached to the building is a 10-bay carport, with 6 storage units. The property also has 4 maintenance sheds.
City historians confirm that the site was previously owned by Winfield Scott Stratton a mining millionaire and benefactor of the City of Colorado Springs in the early 1900’s. W.S. Stratton purchased this property and the surrounding land in 1900 for a park site and he opened it to the public in 1902. Because the site had been a significant park and had over 8 acres to offer in a part of the City that is not currently meeting the department’s goal of providing 5.5 acres of developed park land per 1,000 residents, staff contacted the Owners to advise them of Park’s interest in possibly acquiring this property.
The Owners were receiving interest from a variety of potential buyers, and they set a rapid deadline to submit offers to purchase the property. Although Parks submitted an offer (contingent on City Council approvals) the Parks Department was not the successful bidder. Instead, the Owners selected the Golden Lotus Foundation’s offer to purchase the property for $2.3 million. Golden Lotus Foundation (GLF) had demonstrated that their mission, which is to “Celebrate tradition and inspire passion for Asian heritage through community resources, education programs, and expand support for culture projects,” made their non-profit organization the best choice to own the property into the future. GLF determined that the property is well suited to support an Asian heritage center, botanical gardens and in the future a tea house in coordination with its other park qualities.
At the suggestion of a member of City Council, GLF contacted Parks to understand if Parks would prefer to partner with them to complete a purchase of the property. This proposal offers a partnership which would allow the City to own the park property and have GLF as a partner to operate the site in the interim while they conduct a fundraising capital development campaign to convert the existing facilities into an Asian heritage center, botanical garden and tea house. Because the site is over 8 acres, other neighborhood park elements such as the grassy areas, walking trails, and other park facilities are envisioned to co-exist with and complement the Asian heritage vision for this property
Previous Council Action:
N/A
Financial Implications:
The GLF’s contract offer is $2.3 million. This offer is supported by an appraisal dated November 2021. The Parks Department proposes to use $2.3 million of park land dedication ordinance (PLDO) fees to purchase and consequently own the property. More specifically, the department has identified the PLDO fund balance for fees collected prior to the early 2021 revision of the parkland dedication ordinance for this project. The fund balance is just over $2.5 million, and it can support the cost of this acquisition as well as the standard real estate transaction costs associated with a property purchase such as closing costs, title insurance and recording fees. These PLDO fees were collected during the residential development process to allow the Parks Department to purchase neighborhood and community park sites when a development proposal does not have sufficient land to dedicate to the City for a park. Staff recommends funding the closing costs and other standard real estate transaction costs from the PLDO fund balance for a total supplemental appropriation of $2,305,000.
City Council Appointed Board/Commission/Committee Recommendation:
The Parks, Recreation and Cultural Services Advisory Board is scheduled to consider this proposal at its November 18, 2021 meeting.
Stakeholder Process:
Parks, Recreation and Cultural Services Advisory Board (Parks Board) meetings provide opportunities for public comment. This proposed acquisition is scheduled for the Parks Board’s November 18, 2021 meeting. Additionally, there was a neighborhood public meeting at the Ivywild School’s gym in late July of this year to inform the public of the decision to sell the property and the process for consideration of offers to the extent it was known at that time.
Alternatives:
Do not authorize the acquisition of the 8.48 acre park site or request modifications to the proposal.
Recommended Action
Proposed Motion:
A motion to authorize by resolution the acquisition of the 8.48-acre Stratton Park site located at 1819 West Cheyenne Road in partnership with the Golden Lotus Foundation.
Summary of Ordinance Language
N/A