Title
A Resolution Authorizing the Acquisition of Property Owned by the American Numismatic Association to be Used for the Rock Island Trail - Legacy Loop
Presenter:
Karen Palus, Director of Parks, Recreation and Cultural Services
Sarah Bryarly, Landscape Architect II
Body
Summary:
The Parks, Recreation and Cultural Services Department, through the City’s Trails, Open Space and Parks Program (“TOPS”) is recommending the acquisition of approximately 0.80 acres of real property currently owned by the American Numismatic Association (“Seller”) located at 2415 Beacon Street for an extension of the Rock Island Trail and a key connection for the Legacy Loop.
The City’s Park System Master Plan identifies the completion of the Rock Island Trail Corridor and the Legacy Loop as high priorities for trail development. The acquisition of the American Numismatic Property is necessary for the development of this missing segment of trail.
Previous Council Action:
City Council heard a presentation on this item at its January 23, 2017 work session.
Background:
The Property (the “Property”), currently owned by the American Numismatic Association (Seller), more specifically known as Tax Schedule Number 6331338011, consists of approximately 0.80 acres. The Property is located along the Rock Island Railroad Corridor near the north end of Monument Valley Park, just east of the Popcycle Bridge.
The Seller has agreed to sell the property to the City for trail purposes for the amount of $424,900. The purchase price of $424,900 is supported by an appraisal obtained by the City in accordance with the City’s Real Estate Manual. The purchase is subject to the approval of the Mayor; Trails Open Space and Parks (TOPS) Working Committee; the City Parks and Recreation Advisory Board; and the City Council of Colorado Springs. Based upon approval of the property acquisition, staff will move forward with developing a purchase contract including standard due diligence provisions.
The 1983 City of Colorado Springs Trails Master plan first identified the Rock Island corridor as an important east-west trail link. The current 2015 Park System Master Plan identifies this section of missing trail as a top priority to advance the completion of the Rock Island Trail and the northern portion of the Legacy Loop Project. This corridor is also identified as a key missing link in the City’s Bike Plan.
The Rock Island Trail is an existing east-west multiuse trail that begins in eastern Colorado Springs and terminates short of the Pikes Peak Greenway. This trail has been recognized nationally as part of the coast to coast America the Beautiful Millennium Trail. Acquiring the ‘missing gap’ and connecting the existing Rock Island Trail with the Greenway has been a goal of the City for over 20 years.
The Rock Island Corridor has also been identified in the City’s East-West Mobility Study as a future road corridor for the extension of Constitution Avenue from I-25 to Templeton Gap Road. Park staff has worked closely with City Engineering to ensure the acquisition of property along the corridor for trail purposes, with TOPS funding, does not preclude the future extension of Constitution Avenue. Acquisition of the Property for trail purposes neither precludes nor advances the future development of Constitution Avenue.
The property includes an existing 6,744 SF warehouse. The warehouse may provide an opportunity for adaptive reuse. Once the property is acquired by the City, the City will solicit proposals to gauge community interest in leasing the property for adaptive reuse in a manner consistent with the vision for the Legacy Loop and requirements of the TOPS Ordinance. If an acceptable proposal is received and lease terms negotiated, a draft lease agreement will be presented for review, recommendation and approval by the TOPS Working Committee, Parks and Recreation Advisory Board, City Council and Mayor. If a lease or partnership agreement is not determined to be acceptable, the building may be demolished.
This item supports the City’s strategic goal relating to investing in infrastructure by creating key linkages within the City’s trail system.
Financial Implications:
There are a number of financial aspects associated with this project which are outlined below:
Acquisition: Acquisition of the Property will require $424,900 from the TOPS Trails account. Funding necessary to complete the acquisition has already been appropriated from the TOPS Trails account for this purpose. No additional funding appropriation is necessary to complete the transaction.
Relocation Costs: The American Numismatic Association currently occupies the warehouse on the property. The Association is currently pursuing acquisition of a replacement property. The TOPS Program will provide up to $25,000 to assist the Association with relocation costs.
Capital Improvements and Construction: Funding to construct the trail across the Numismatic Property is estimated to cost up to $120,000. The City has secured construction funding for this segment of the Rock Island Trail from the following sources: Great Outdoors Colorado (Grant), TOPS Trails Category and PPRTA. In addition, the TOPS Working Committee and the Parks and Recreation Advisory Board have recommended additional TOPS funding for construction of the Rock Island Trail Corridor as part of the 2017 CIP Budget.
Adaptive Reuse or Removal of the Warehouse: The amount of funding required for adaptive reuse of the warehouse is undetermined at this time. The City will solicit proposals from interested parties and negotiate terms. It is anticipated that the lessee will be responsible for renovation and operational costs associated with the building. In accordance with the TOPS Ordinance, any revenue generated on TOPS funded property must be returned to the TOPS fund.
If it is determined that demolition and removal of the structure is the best alternative, additional funding in the amount of up to $85,000 will be required from the TOPS Program or other funding source.
Operations: Cost to maintain this short missing segment of trail is expected to be minimal. Annual operating costs are expected to be less than $1,500. These costs can be partially offset through the City’s successful “Adopt-a-Trail” program.
Board/Commission Recommendation:
On September 8, 2016 the Parks and Recreation Advisory Board recommended approval of the acquisition of the Property from the American Numismatic Association, in the amount of $424,900 with TOPS Trails funds, for the advancement of the Rock Island Trail and the Legacy Loop Project.
Stakeholder Process:
Through the Legacy Loop process, several public meetings have been held to gather input from the community. Although these meetings were not focused on the acquisition of the American Numismatic property, many comments recommended the City acquire this property for use by the Rock Island Trail.
Alternatives:
City Council could decline to approve the acquisition of the Property.
Recommended Action
Proposed Motion:
Move approval of the acquisition of the American Numismatic Property, in the amount of $424,900 with TOPS Trails funds, for the advancement of the Rock Island Trail and the Legacy Loop Project.
Summary of Ordinance Language
N/A