Title
A Resolution Authorizing a Below-Market Lease of Real Property to Michael Toneff and Crystal Toneff
Presenter:
Jessica Davis, Land Resource Manager, Colorado Springs Utilities
Aram Benyamin, Chief Executive Officer, Colorado Springs Utilities
Body
Summary:
Colorado Springs Utilities' (Springs Utilities) staff requests City Council approval of a resolution authorizing a below fair market lease to Michael and Crystal Toneff of the real property (the Property") that was purchased for the Gary M. Bostrom Reservoir, formerly known as the Upper Williams Creek Reservoir (UWCR), which is part of the Southern Delivery System (SDS) project.
Background:
On December 10, 2013, City Council approved Resolution No. 134-13 authorizing negotiations to acquire properties necessary for the SDS project. Utilities has acquired approximately 2,200 acres of property for UWCR.
Utilities acquired the Property on April 30, 2020, in a consensual transaction. The Property consists of 120 acres of land, which is located at 13420 and 13550 Bradley Road, Colorado Springs, Colorado 80928 and known as El Paso County Tax Schedule Numbers 45000-00-121 and 45000-00-122 and includes a house, a modular home, a utility shed, and a garage. Michael and Crystal Toneff currently reside in the modular home. The Property is needed for the reservoir site and buffer area. When acquired, the Easteps had multiple tenants (fifteen separate individuals or seven separate family units) leasing portions of the Property. According to City Code of the City of Colorado Springs and the City of Colorado Springs Procedure Manual for the Acquisition and Disposition of Real Property Interests, Revised 2021 (City's Real Estate Manual), those tenants were to be relocated according to the federal Uniform Act even though no federal funds were associated with the SDS project.
As part of the acquisition, City Council approved a one-year below fair market value lease to the Easteps to assist with rel...
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