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HomeMy WebLinkAbout10113RESOLUTION NO. 10113 A RESOLUTION AUTHORIZING THE CITY OF PUEBLO TO SUBMIT A CONCEPT PAPER FOR THE MINNEQUA LAKE PARK AND OPEN SPACE PROJECT TO THE STATE BOARD OF THE GREAT OUTDOORS COLORADO TRUST FUND, AND AUTHORIZING THE PRESIDENT OF THE COUNCIL TO EXECUTE SAME WHEREAS, City Council supports and authorizes the submittal of a concept paper for the Minnequa Lake Park and Open Space Project for the purposes of the acquisition and development of a park, open space and regional storm water facility; and BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, COLORADO, that: SECTION 1 The President of the City Council is hereby authorized to execute and deliver the concept paper for the Minnequa Lake Park and Open Space Project on behalf of the City of Pueblo, a Municipal Corporation, to the State Board of the Great Outdoors Colorado Trust Fund, and the City Clerk shall affix the seal of the City thereto and attest same. SECTION 2_ The concept paper identifies an estimated budget of $2.6 million for the first phase of the project that includes the acquisition of land and water rights with $1.8 million provided by GOCO and $800,000 in local matching funds SECTION 3_ A copy of the concept paper is attached hereto and is on file at the City of Pueblo's Department of Planning. NTRODUCED ADril26.2004 CITY CLERK Michael Occhiato Councilperson PRESI E I a joo 1 0 101(3 100 anw�' law Ll Background Paper for Proposed RESOLUTION AGENDA ITEM # � 9 DATE: APRIL 26, 2004 DEPARTMENT: COMMUNITY DEVELOPMENT /JIM MUNCH PLANNING DEPARTMENT /CATHY GREEN TITLE A RESOLUTION AUTHORIZING THE CITY OF PUEBLO TO SUBMIT A CONCEPT PAPER FOR THE MINNEQUA LAKE PARK AND OPEN SPACE PROJECT TO THE STATE BOARD OF THE GREAT OUTDOORS COLORADO TRUST FUND, AND AUTHORIZING THE PRESIDENT OF THE COUNCIL TO EXECUTE SAME ISSUE Should the City Council agree to submit a concept paper to the State Board of the Great Outdoors Colorado Trust Fund (GOCO) to assist in funding the acquisition of Minnequa Lake for a park and regional stormwater facility and authorize the President of Council to execute same? RECOMMENDATION Approval of the Resolution. BACKGROUND A concept paper for the Minnequa Lake Park and Open Space Project has been prepared by the City of Pueblo identifying potential funding from GOCO for the purchase of the Minnequa Lake property and water rights. The budget estimates an acquisition cost of $2.6 million for land and water rights acquisition with $1.8 million provided by GOCO and $800,000 in local matching funds. GOCO is requesting concept papers for projects seeking grant awards in excess of $1 million that can be completed within a three year time period. The GOCO Board will be assessing the concept papers in order to determine what level of funding will be provided and what types of projects will be funded in upcoming years. Following the completion of the assessment, the GOCO Board will determine the funding level for "Large-Scale Projects" and the projects that are under consideration for funding. By the end of June, the agencies with a project under consideration for funding will be invited to submit a full application. The Minnequa Lake Park And Open Space Project includes of the purchase of approximately 240 acres of property including Minnequa Lake and associated water rights to be included in an augmentation plan to cover the evaporative loss of water from the lake and for the irrigation ditch rights to be used for irrigating developed park areas on the property. The City currently owns 80 acres along the south boundary of the lake property that is being considered to be included in an overall park, open space, and regional stormwater detention and water quality enhancement facility. The combining of a large park and open space area with a regional storm water facility allows for the pooling of the City's financial resources in a way that could provide a significant saving of the community's tax dollars. FINANCIAL IMPACT This is not a formal grant application to GOCO. City funds have not been budgeted and appropriated for the Minnequa Lake Park and Open Space Project, since Great Outdoors Colorado has not determined what level of funding will be provided and what types of projects will be funded in upcoming years. If GOCO approves this concept paper and invites the City to submit a full grant application, the City could potentially provide matching funds through a variety of funding sources including a possible federal appropriation, private and other federal grants, Conservation Trust Funds, Historic Preservation Funds, water conservancy district funding and Stormwater Utility Funds (portion of value related to temporary storage of water in lake). If the City does not acquire Minnequa Lake soon there is strong possibility that the property will be sold in a piecemeal fashion by the CF &I resulting in a potential lost opportunity for the City to acquire the property for use as a stormwater/water quality facility and a park and open space area. The Lake Minnequa Master Storm Drainage and Financing Plan completed by Sellards & Griggs, Inc. in June, 1975 identifies the cost for the construction of the Freeway Outfall which is the stormwater system from Minnequa Lake to the outfall into the Arkansas River. The financing plan identifies an estimated cost of $13,019,000 (converted from 1975 figures to 2003 figures) for the Freeway Outfall stormwater system which utilizes a large stormwater pipe system that would not utilize Minnequa Lake for additional water storage. The study identifies a graduated cost savings for each additional foot of stormwater storage, if Minnequa Lake was used to capture the stormwater and gradually release the water through a smaller pipe system. The estimated costs savings of utilizing Minnequa Lake for detention storage is shown in the table below. Cost Saving Reserve Available, Ft. Reserve in Acre -Ft. $2,091,000 2 Ft. 260 $2,917,000 3 Ft. 390 $4,778,000 4 Ft. 520 $6,627,000 5 Ft. 650 Concept Paper for the Minnequa Lake Park & Open Space Project Submitted By City of Pueblo, CO A Concept Paper for the Minnequa Lake Park & Open Space Project 1. Executive Summary The Minnequa Lake Park & Open Space Project includes the acquisition of the 243 -acre Minnequa Lake property and the associated water rights from Rocky Mountain Steel Mills that will be incorporated into a 330 -acre regional park, open space, and storm water facility. The City of Pueblo currently own 80 -acres that will be combined with the Steel Mill property to preserve the most significant open space area within the City's corporate boundary. A unique part of the project is the integration of a regional storm water and water quality treatment facility with the primary use of the property as a park and open space area A large park/open space area and regional storm water facility are both identified needs in South Pueblo. Lake Minnequa was established in 1873 to supply water to the residents of the new town of South Pueblo. Following the establishment of the Colorado Coal and Iron Company (CF &I) the lake provided the water for making steel. The original intent of the company may not have been to open the reservoir for recreational purposes, but immediately after the lake was completed the townspeople started using the place to swim, fish, boat or ice skate in the winter season. Pueblo, and the Southern Colorado region had no other park at that time. For over 75 years, between 1874 and the early 1950's, Lake Minnequa was described as "quite a resort" that over the years included a lakeshore dance pavilion, a carriage run around the lake, a boathouse on the lake, and an amusement park featuring roller- coaster rides, a Ferris wheel, a 1,200 -seat theater, a baseball park and grandstand, and a carousel. The developed sites were along the north and east sides of the reservoir, while the remainder of the two miles of shoreline was retained in a natural condition that provided excellent Lakeshore habitat for mammals and birds. Even though the lake served as Pueblo's premier gathering place, the property was never placed into public ownership. In 1976 CF &I closed the lake to any and all types of public use. Since the closure five community plans have pointed out that since the closing of Lake Minnequa there is no longer a district -sized or what today might be called a "regional park" in South Pueblo, an area composed primarily of low to moderate level income households. All of the plans have advocated the acquisition and reopening of Lake Minnequa as a public park and open space area to address the needs of the South side residents and to protect one of Pueblo's premier open space property within City limits. An important component of the project is the protection of the lake and surrounding environs that provides for the preservation of the scenic, natural and cultural qualities of the lake, and shoreline areas, along with the redevelopment of recreation amenities on the property in locations that do not impact the property's conservation values. The project envisions the development of recreation facilities on approximately 15% of the property (50 acres) and the remaining 85% of the property (280 acres) will be managed as an open space and lake area. The developed areas will contain regional recreation facilities that address the needs of Southern Colorado, as well as the residents of the predominately low and moderate- income households in South Pueblo. The primary partners that will be committing funding, property, and expertise to the project includes entities such as the Pueblo Natural Resources and Environmental Education Council, Bessemer Association for Neighborhood Development, Recreation and Leisure Task Force of the 2010 Commission, Pueblo School District No. 60, Colorado Division of Wildlife, Arkansas Valley Audubon Society, and St. Mary- Corwin Hospital - Centura Health. The Minnequa Lake project will meet four out of the six LOCO objectives. Protecting Wildlife and Habitats The project will acquire and protect the Minnequa Lake property which contains valuable habitat for wildlife and will be managed in cooperation with the Colorado Division of Wildlife to protect wildlife. The 330 -acre area provides water -based habitat that equals Pueblo Arkansas River and Fountain Creek riparian corridors. Protecting Open Space Corridors and Greenbelts The property is the largest area (243 acres) in the southern portion of the City that is currently a private "open space" area. The site will play an important role in providing an opportunity to connect the Arkansas River corridor with the St. Charles River corridor. Providing Land and Facilities for Outdoor Recreation The project will provide land and facilities on a regional scale for outdoor recreation. The recreation facilities will be located in a manner that does not impact the conservation values of the lake and shoreline. Providing Opportunities to Engage Youth in Outdoor Activities Due to the number of unique environmental settings (aquatic, wetland, riparian, and upland) that will work in concert with the water quality and storm water management there are significant opportunities for area schools and environmental groups to utilize the property for educational purposes. The Pueblo City Council has adopted new storm water fees and the revenue generated from these fees provides a unique opportunity to fund the acquisition of the property for a park and open space area that could be designed to serve as a regional storm water facility. The City anticipates the storm water fees should generate approximately $3 million per year that will be earmarked for citywide storm water improvements. These funds will be part of a viable funding strategy to assist in the acquisition of property. The project is being undertaken at a time when development is beginning to encroach into the project area along the southwest side of the lake. The City currently owns 50 acres adjacent to the south edge of the Lake and has received several inquiries about selling its property for private development. Although the Steel Mill is interested in selling the property to the City, the corporation has received several other offers to sell property along the eastern side for medical and office buildings, as well as along the southwest side for residential development. If the City of Pueblo does not secure the Lake Minnequa property within the next two years, the Steel Mills' corporate officials in Oregon could decide to dispose of the property in a piecemeal fashion. Pueblo's residents in the areas north and east of Minnequa Lake have worked with the City to complete the Bessemer Neighborhood Plan and are ready to move onto implementing the actions recommended in the plan. The Bessemer Association for Neighborhood Development (BAND) has committed to assist the City with the acquisition and development funding for Minnequa Lake. 2. Impact The end product of the project will be the acquisition of the most significant open space area within the City's corporate boundary. The project will also developed public park facilities for activities and/or trails that do not significantly conflict or impact the property's natural values open space areas. The development of the park facilities addresses the current park deficiencies on the South side of Pueblo which is an area composed of predominately low and moderate - income households. As a secondary use, the project will integrate the use of Minnequa Lake to also function as a regional storm water and water quality facility that will complement the vision of the park and open space area. The project will bring into public ownership, Pueblo's first park area established in 1874. The park will contain regional recreation facilities that will also address the needs of Southern Colorado region. These improvements will likely include sports fields, as well as shoreline vegetation, trails and pathways along the outer perimeter of the lake shoreline for passive recreational uses. The combining of a large park and open space area with a regional storm water facility allows for the pooling of the City's financial resources in a way that provides a significant saving of the community's tax dollars. The development of this type of multiple use facility will be a model for other communities within the Southern Colorado region, as well as statewide. Since issues tied to water rights, especially within the Arkansas River Basin, are an important part of nearly all park and open space projects today, the project will include the purchase of water rights. These water rights will allow for the storage of water in the lake, and the use of the irrigation rights to water the developed portions of the park and the augmentation plan to cover the evaporative loss of water in the lake. 3. Financial Partnerships Q.everagiwj The City of Pueblo is submitting a concept paper for the acquisition of the Minnequa Lake property and water rights totaling $2.6 million. GOCO's share is projected to be $1,800,000 and the City /partner matching funds is estimated to $800,000. The City anticipates utilizing a variety of funding sources to provide the matching funds including a possible federal appropriation, private and other federal grants, Conservation Trust Funds, Historic Preservation Funds, water conservancy district funding and Stormwater Utility Funds. Through the City's newly adopted storm water fees a source of revenue could be available to assist in funding the acquisition of the property, as well as the increase in the capacity of the lake and the restoration of vegetation along the shoreline of the lake. The City intent is to secure an option to purchase the Nlinnequa Lake property from Colorado Fuel & Iron at a fixed price based on appraisals of the property and water rights. The option agreement will a 1 -2 year period for the City to secure the remaining funding necessary for the purchase of the property. A second phase of the project is anticipated in the future that will provide modifications to the capacity of the lake, enhancement of the shoreline vegetation, and the development of active and passive recreation areas. The park improvement budget is estimated to be $2,500,000. GOCO's share would be $1,180,000 and the City /partner share would be $1,320,000. Another potential funding partner is the Pueblo Board of Water Works. The Board of Water Works has committed to work with the City of Pueblo to assist in the acquisition of the water rights for the project, as well as review the potential for the use of the lake for Board of Water Works purposes. If the lake can become a part of their operations, they would consider contributing funding for the project. In addition, the City is actively soliciting funding a funding request of $1 million through a U.S. Department of Housing and Urban Development's Economic Development Initiative Special Project Grant that targets low to moderate income areas. In 2002, the City of Pueblo received a $405,000 grant through the EDI program for the Historic Arkansas Riverwalk Project — Phase 3. Another possible funding opportunity is the Urban Park and Recreation Recovery ( UPARR) program administered by the National Park Service. These funds, when appropriated by Congress, are made available for the development of new park and recreation facilities or the renovation of parks in low to moderate income communities with a population over 100,000 residents. Pueblo has successfully secured UPARR funds in the past with the most recent grant of $200,000 in 2002. Other potential funding sources for the acquisition of N innequa Lake include various non -profit foundations with funding being secured through the Bessemer Association for Neighborhood Development (BAND). SOURCE OF FUNDS DATE SECURED DATE GOCO APPLICANT & TOTAL SECURED GRANT PARTNER '04 —`07 0 $350,000 $350,000 REQUEST MATCH 1 $990,000 $810,000 1 $1,800,000 CASH $1 $800 $2,600 TOTAL SOURCES $1 9 800,000 $800,000 $2,600 OF FUNDS — PHASE 1 USE OF FUNDS — PHASE 1 DATE TO GOCO APPLICANT TOTAL BE SPENT FUNDS FUNDS 1. ACQUISITION - Property Acquisition '04 —`07 $1 $500,000 A$2,60%000 Water is Purchase '04 —`07 $700 $300,000 TOTAL AC UISITION COSTS $1,800,000 $800 FUTURE PARK IMPROVEMENTS PHASE DATE SECURED GOCO FUNDS APPLICANT FUNDS TOTAL 2. PARK EMPROVEMENTS Increase Storm Water Capacity & Lake Habitat '04 —`07 0 $350,000 $350,000 Active Park Improvments (ie. sports 1 '04 — 1 07 1 $990,000 $810,000 1 $1,800,000 4. Non - financial sup cp �rt The following list of organizations and agencies have pledged to committed their membership and staff time to assist as stakeholders in the development of the Minnequa Lake Park and Open Space Master Plan (see attached letters): • Bessemer Association for Neighborhood Development • Pueblo School District No. 60 • Pueblo Natural Resources and Environmental Education Council • Recreation and Leisure Task Force of the 2010 Commission • Arkansas Valley Audubon Society • St. Mary- Corwin Hospital - Centura Health In 1997 the Pueblo Natural Resources Environmental Education Council (PNREEC) worked with over 75 representatives from community organizations and citizens completed a plan that inventoried and identified significant natural resource and recreation opportunities within Pueblo County. An important component of the PNREEC Plan was the completion of questionnaires, interviews, surveys, and public meetings to determine the community interest and the need for protection of natural resources and incorporating environmental education as a key part of the conservation effort. The PNREEC Plan resulted in the identification of 16 pilot projects throughout Pueblo County (see attached planning documents and letter). One of the highest priorities listed in the pilot projects was the acquisition of Minnequa Lake for open space and recreation. The PNREEC plan documents the need to provide for a balance of the types of pilot projects that can be completed and provide the greatest value to the Pueblo region. During the past nine months the City along with the Bessemer Association for Neighborhood Development (BAND) have worked to complete the Bessemer Neighborhood Plan that establishes a coordinated vision for the neighborhood's future. The Plan also establishes long -range goals and objectives for the development and stabilization of the neighborhood. As one of Pueblo's oldest neighborhoods Bessemer borders the northeast side of Lake Minnequa. The park and recreation initiative in the plan encourages the City to acquire the Lake Minnequa property and to have BAND participate in the developing a plan for Lake Minnequa to serve as a district level park and make up for some of the park deficiencies in the Bessemer Neighborhood (see attached planning documents and letters). The list of planning documents identifying the need to acquire Lake Minnequa includes: Bessemer Neighborhood Plan (scheduled for adoption by City Council in March, 2004) Pueblo Natural Resources and Environmental Education Strategic Plan (1997) Updated Urban Park and Recreation Recovery Program Plan (1992 -1997) Urban Park and Recreation Recovery Program Plan (1980 -1985) Pueblo Parks and Recreation Master Plan (19 76) 5. Ability to Implement The City of Pueblo has an excellent track record for the development, support, implementation, and completion of major community projects in the Pueblo region. Pueblo is known statewide, as well as nationally, as a city that gets things done. The Arkansas River Corridor Legacy Project, an $8.75 million combination of river habitat and recreation projects, is currently being constructed. The Historic Arkansas Riverwalk Project (HARP) was one of the first projects in Colorado to receive a GOCO Legacy Project grant. LOCO contributed $1 million towards the $15 million dollar riverwalk project. Project was completed in a timely and efficient manner. The project features, funded in part with over $1 million dollars from GOCO, have been completed in a timely and efficient manner. Summary of some similar projects that have been completed by the City of Pueblo: • 2003 Arkansas River Legacy Project — Pueblo Zoo River Otter Exhibit, 3 miles of River Trail construction (GOCO funded) • 2001 Honor Farm Land Trade and Purchase — 2,353 acres (GOCO funded) • 2000 Pueblo Arkansas River Legacy Project Implementation Plan (GOCO funded) • 2000 Big Hill Open Space Acquisition (GOCO funded) • 2000 Pueblo Skateboard Park, Phase 2 (GOCO funded) • 1999 Historic Arkansas Riverwalk Project — Legacy Project (GOCO funded) • 1999 Historic Arkansas River Project - Lake Elizabeth Urban Park (GOCO funded) • 1999 Historic Arkansas River Project - Family Interactive Area (GOCO funded) • 1998 Tennis Court Renovation Project (GOCO funded) • 1996 Phase I of the Langoni Sports Complex - 22 acres of youth soccer fields • 1989 the five mile Fountain Creek Flood Protection Project (U.S. Corps of Engineers funded) • 1975 to 1989 the 25 -mile multi -use river trail system along the Arkansas River and Fountain Creek • Construction of numerous "Fishing Is Fun" improvements along the Arkansas River and at Runyon Lake including in- stream habitat 6. Attachments Please see the Minnequa Lake Park and Open Space Project Area Map. CITY rrtoParrr 1II = :Tr•7= r un :e CITY rrtoParrr 1II = :Tr•7=