Monday, March 13, 2017

UPDATE: Nor'wood working land swap deal with the city

Posted By on Mon, Mar 13, 2017 at 2:28 PM

click to enlarge The circle in the middle is part of America the Beautiful Park. The Nor'wood piece is at the bottom and is yellow. The pink and green chunks are city land. - CITY OF COLORADO SPRINGS
  • City of Colorado Springs
  • The circle in the middle is part of America the Beautiful Park. The Nor'wood piece is at the bottom and is yellow. The pink and green chunks are city land.

UPDATE: City Council discussed the swap today and are scheduled to approve it in two weeks.

Councilor Bill Murray predicted, "The public is going to be highly irate about this particular discussion. I’ve asked for six month delay for transactional analysis."

But city employee Kathleen Krager said the property is needed to make a trail link as part of the Cimarron interchange and improve water quality with a water quality pond.

Councilor Keith King said he wants the city to require Nor'wood to indemnify the city against any future environmental clean up of the property. The Cimino tracts have a history of being home to a coal gasification plant. Here's some history on that.

—————-ORIGINAL POST 2:28 P.M. MONDAY, MARCH 13, 2017———————-

An executive session is underway with Colorado Springs City Council members behind closed doors discussing matters pertaining to a land exchange and a purchase or sale of property.

Those topics likely are the same as an item on Monday's work-session agenda; namely, a deal with Nor'wood Development Group.

At issue are three tracts of land. The city says it needs a small parcel on the south end of America the Beautiful Park for the Interstate 25 and Cimarron Street interchange.

The city appears willing to trade land more than twice that size and value.

Immediately east of the two city tracts is the 1.7 acre site for the Olympic Museum, which CSJ No. 7 LLC, a holding of David Jenkins who also owns Nor'wood, donated. The deal was closed on Dec. 29, 2016.

• 301 Cimino Dr., owned by CSJ No. 7 LLC, measures 2.5 acres and is worth $270,000, according to the El Paso County Assessor's Office.

• 25 Cimino, owned by the city, covers 3.35 acres and is valued by the assessor at $763,000.

• 125 Cimino, owned by the city, is 2.23 acres and has a value of $456,500.

So the city is looking at trading property the assessor says is worth $1.2 million for property valued at $270,000.

However, the city's backup materials for Monday's agenda provide a different take, and it looks like this, with the city giving up a lower valued property to get one worth a lot more, according to appraisals:
screen_shot_2017-03-13_at_2.00.31_pm.png

Nor'wood is willing to not charge the city the difference. Here's what the city staff explanation states about the transaction:
CSJ No. 7, LLC and Urban Enterprises, LLC are willing to forgo any remuneration due to the difference in the values of the Properties; however, they would like the difference recognized by City Council as a donation. As such, if Council approves this land exchange, the Division Manager of Traffic Engineering will bring a resolution to Council after the land exchange has closed in order for Council to accept the donation in accordance with section 4.4 of the Real Estate Manual. This makes the Land Exchange a no-cost exchange in which the City receives numerous benefits.

No vote will be taken Monday on the transaction, so we'll update when we learn whether this deal will go through.

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