City recognizes partial land donation to Colorado Springs Municipal Airport after recent closing
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Summary
City staff asked Council to recognize a partial in-kind donation related to Parcel 4A, a roughly 50-acre tract acquired last week east of the Colorado Springs Municipal Airport, where an appraisal exceeded the negotiated sale price.
City staff asked Council on Sept. 22 to adopt a resolution recognizing a partial donation tied to Parcel 4A, a roughly 50-acre tract adjacent to the Colorado Springs Municipal Airport that the city closed on the prior week as part of a multi-phase acquisition.
Why it matters: The negotiated sale price for Parcel 4A was below a later appraisal, producing an in-kind donation (the value differential between fair market value and the agreed sale price) under city and IRS procedures. Staff said the seller and city negotiated amendments to the purchase-and-sale agreement that split Parcel 4 and allowed the airport to acquire only 4A without penalties.
What staff reported - Troy Stover, director of Peak Innovation Business Park, said staff executed a fifth amendment to the purchase-and-sale agreement to split Parcel 4 into Parcels 4A and 4B and closed on 4A last week. The seller agreed to reduce the annual price escalator from 4% to 2.5%, saving about $98,000 in land cost for the airport over the contract term. - Parcel 4A appraised above the negotiated price; staff said the difference is treated as an in-kind donation and the precise donation amount will be established by the seller—s IRS filing and appraisal documentation. Staff recommended council recognition of the partial donation; the item was scheduled on the regular-meeting agenda for the next day.
Next steps The item will be considered at the Oct. 23 (?) regular meeting (staff noted the back-to-back scheduling with tomorrow—s regular meeting to accommodate seller timing and year-end tax paperwork). Staff confirmed the city attorney reviewed the transaction.
Context Staff framed the phased acquisition as cash-flow and closing-date management for the airport; Parcel 4B remains in later phases. Council asked procedural questions about timing and attorney review; staff said the closing already occurred and documentation is in escrow while the seller prepares IRS forms related to the donation.