Title
A Resolution Authorizing the Disposal of Surplus City Property to Project Raptor (the Purchaser”)
Presenter:
Troy Stover, Business Park Development Director, Colorado Springs Airport Economic Development
Body
Summary: This resolution involves a request to City Council to authorize the disposal of surplus City property held for development as a part of Peak Innovation Park. The property is not required for airport operations. The transaction falls under § 5.7 of the Colorado Springs Procedure Manual for the Acquisition and Disposition of Real Property Interest, Revised 2021 (the “Real Estate Manual”) as a sale of surplus property offered for sale by listing. Reasons favoring the sale include airport self-sufficiency, economic development, job growth, and infrastructure development. The proposed conveyance is approximately 12.693 acres.
Background:
The approximately 12.693 acres proposed for sale are situated north of Milton E. Proby Parkway, and the Airport has entered into a Purchase and Sale Agreement (“PSA”), subject to City Council approval. The City’s Real Estate Services department obtained an appraisal of the property to establish its fair market value (“FMV”), and the purchase price in the PSA is equal to or greater than the FMV established under the appraisal. No other city department or enterprise has expressed an interest in the property, except for the preservation of rights related to certain utility infrastructure.
The City purchased the subject property by deeds dated December 10, 1976, and December 19, 1977, with Federal Aviation Administration (“FAA”) grant funds for the purpose of runway approach protection and airport development. The Airport discussed the potential sale of the property with the FAA and the FAA agreed the intended purpose is a compatible land use with the Airport. Accordingly, the FAA currently supports the sale of the land and will provide a letter of release for the sale prior to closing.
The PSA will obligate the Airport to complete approximately $14 million dollars of infrastructure and site development work. Such work will be financed by Peak Metropolitan District No. 3 and bonds sufficient to pay for the work were sold on or about December 21, 2022, so Airport funds will not be used for development work.
Previous Council Action:
N/A
Financial Implications:
As this property was acquired with FAA funds, the proceeds from the sale of this transaction will go to the Airport enterprise and will be used for eligible projects/purposes per FAA guidelines.
City Council Appointed Board/Commission/Committee Recommendation:
N/A
Stakeholder Process:
N/A
Alternatives:
N/A
Recommended Action
Proposed Motion:
Motion to approve the resolution authorizing the City Real Estate Services Manager to execute documents necessary to dispose of 12.693 acres, more or less, of surplus City property, situated in Peak Innovation Park, in Colorado Springs, El Paso County, Colorado, and to obtain the Mayor's signature on the Quitclaim Deed and related documents to convey the property to the Purchaser.
Summary of Ordinance Language
N/A