9.I.
City Council Meeting - FINAL
- Meeting Date:
- 12/19/2023
- From:
- Bryce Doty, Real Estate Manager
Information
TITLE:
Consideration and Approval of Contract: Grazing Lease on Arizona State Land Department Lands within Red Gap Ranch
STAFF RECOMMENDED ACTION:
- Approve the Grazing Lease with the Arizona State Land Department
- Authorize the City Manager to execute the necessary documents
Executive Summary:
The ranch known as Red Gap Ranch comprises approximately 8,500 acres of real property owned by the City of Flagstaff and 14,923 acres of real property owned by the Arizona State Land Department under a grazing lease. When the City purchased the fee parcels in 2005, it also took ownership as lessee to the state grazing lease, which provides access to the adjacent City parcels. The grazing lease, along with the fee lands are currently sub-leased and leased to Bar-T-Bar through December 31, 2024. The grazing lease with the State Land Department expires on December 31, 2023. City staff has applied for an extension of the State Land Department Grazing Lease to commence on December 31, 2023 until December 30, 2033. Approval of this agenda item will approve the grazing lease renewal and authorize the city manager to sign all necessary documents related to the lease.The new Grazing lease will subsequently be sub-leased to Bar-T-Bar as our existing agreement entails.
Financial Impact:
The annual lease amount varies based on the number of animal units declared. The sub-lease with Bar-T-Bar covers all rentals associated with the State Land Department Grazing Lease. There are no negative financial impacts with the grazing lease. Both the lease payment and lease revenue from Bar-T- Bar are budgeted in the Water Fund.
Policy Impact:
Red Gap Grazing Lease with the State Land Department furthers the City's commitment to environmental stewardship, sustainability and watershed protection.
Connection to PBB Priorities/Objectives, Carbon Neutrality Plan & Regional Plan:
Priority Based Budget Key Community Priorities and Objectives
Sustainable, Innovative Infrastructure: Utilizes existing long range plans that identify the community's future infrastructure needs and all associated costs - Red Gap Ranch plays an integral role in the 100-year water supply for the City of Flagstaff.
Environmental Stewardship: Actively manage and protect all environmental and natural resources
Sustainable, Innovative Infrastructure: Utilizes existing long range plans that identify the community's future infrastructure needs and all associated costs - Red Gap Ranch plays an integral role in the 100-year water supply for the City of Flagstaff.
Environmental Stewardship: Actively manage and protect all environmental and natural resources
Has There Been Previous Council Decision on This:
The previous grazing lease with the state land department was approved in 2013.