Title
A Resolution Authorizing The Acquisition Of Real Property Owned By Grant Invest Llc And Real Property Owned By Parkway Plaza Limited Liability Company To Be Used For The Central Bluffs Substation Project
Presenter:
Jessica K. Davis, Land Resource Manager, Colorado Springs Utilities
Travas Deal, Chief Executive Officer, Colorado Springs Utilities
Body
Summary:
Colorado Springs Utilities (“Utilities”) requests that City Council approve a resolution that will allow Utilities to purchase the properties identified below for the Central Bluffs Substation Project.
Background:
Utilities is modernizing the electric grid for sustainability and system resiliency and reliability. Over the years, our customers’ electricity demands have evolved and peak loads continue to increase. Utilities has identified three substations that are severely space constrained and no longer located at ideal points on the grid to accommodate future demand. The Central Bluffs Substation Project (“Project”) will replace these three aging substations with one facility to improve system reliability, resiliency, and efficiency. Additionally, it will provide for long-term operation and maintenance (O&M) savings. Without this replacement Utilities is at risk for significant reliability and service issues to existing infrastructure.
Staff, over a three-year process, evaluated several sites. Each potential site was evaluated for community impact, legal constraints, and operational compatibility, flexibility and accessibility - as well as cost factors. The unique operational and space requirements for the Project drastically limited options within a part of Colorado Springs that is already well established and fully developed. The proposed Project site was selected because it is the most operationally and economically compatible with the needs of our community. The properties listed below are part of the proposed Project site:
2914 Austin Bluffs Pkwy: The property located at 2914 Austin Bluffs Pkwy, Colorado Springs, Colorado 80918, also known as El Paso County Tax Schedule Number 6327206051, is owned by Grant Invest LLC. Utilities had the property appraised by an independent commercial appraiser. The appraisal indicates a market value for the Property of $1,000,000 as of July 27, 2022. After negotiations, Grant Invest LLC and staff agreed upon the purchase price of $1,100,000.
2930 Austin Bluffs Parkway: The property located at 2930 Austin Bluffs Parkway, Colorado Springs, Colorado 80918, also known as El Paso County Tax Schedule Number 6327206055, is owned by Parkway Plaza Limited Liability Company. Utilities had the property appraised by an independent commercial appraiser. The appraisal indicates a market value for the property of $2,000,000 as of July 27, 2022. After negotiations, Parkway Plaza Limited Liability Company and staff agreed upon the purchase price of $2,200,000.
Pursuant to the provisions of the Colorado Springs City Charter, the City is empowered to acquire real property necessary for Utilities’ projects. Section 9.6 of The City of Colorado Springs Procedure Manual for the Acquisition and Disposition of Real Property Interests, Revised 2021 (the “RES Manual”) provides that if the total acquisition amount is greater than $100,000, City Council must approve the transaction.
Staff is requesting authorization to acquire the properties for the total acquisition amount of $1,100,000 for 2914 Austin Bluffs Parkway and $2,200,000 for 2930 Austin Bluffs Parkway, for an aggregate total of $3,300,000.
Four additional properties identified by Utilities require acquisition by the Project. Two properties currently have signed contracts and are awaiting Project review and approval, while negotiations efforts continue with the remaining two properties.
Previous Council Action:
On July 12, 2022, City Council passed Resolution No. 92-22 authorizing the acquisition of 4006 Goldenrod Drive for the Central Bluffs Substation Project. On February 14, 2023, City Council passed Resolution No. __-23 authorizing the acquisition of 4002 Goldenrod Drive and 2918 Austin Bluffs Parkway for the Central Bluffs Substation Project.
Financial Implications:
This property acquisition is accounted for in Utilities’ 2023 project budget.
City Council Appointed Board/Commission/Committee Recommendation:
Utilities Board has considered these acquisitions at its regular meeting on February 22, 2023.
Stakeholder Process:
Utilities conducted neighborhood meetings on July 20 and October 18, 2022 to inform the neighborhood about the Project. Utilities has sent out mailers to all of the properties within a one-mile radius of the Project site. Staff has met with and had regular communication with property owners impacted by the Central Bluffs Substation Project and will continue to communicate with stakeholders on a regular basis. Utilities Board has been briefed on the proposed acquisition of the Property. In addition, negotiations with property owners are conducted in accordance with the RES Manual, and all applicable laws.
Alternatives:
Approve the resolution. Deny the resolution.
Recommended Action
Proposed Motion:
Motion to approve the proposed Resolution authorizing the acquisition of real properties to be used for the Central Bluffs Substation Project.
Summary of Ordinance Language
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