HomeMy WebLinkAbout8382RESOLUTION NO. 8382
A RESOLUTION APPROVING AN AMENDMENT TO LEASE AND OPERATING
AGREEMENT BETWEEN PUEBLO, A MUNICIPAL CORPORATION, AND
MARTINA A. ALGIN RELATING TO THE RESTAURANT LOCATED IN THE
TERMINAL BUILDING AT PUEBLO MEMORIAL AIRPORT, AND AUTHORIZING
THE PRESIDENT OF THE CITY COUNCIL TO EXECUTE SAME
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO THAT:
SECTION 1
The Amendment to Lease and Operating Agreement between Pueblo, A Municipal Corporation,
and Martina A. Algin relating to the Restaurant located in the Terminal Building at Pueblo
Memorial Airport, a copy of which is attached hereto, having been approved as. to form by the
City Attorney, is hereby approved.
SECTION 2
The President of the City Council is hereby authorized to execute and deliver the Agreement
in the name of the City and the City Clerk is directed and authorized to affix the Seal of the
City thereto and attest the same.
(SEAL)
INTRODUCED April 13, 1998
BY: Al Gurule
Councilperson
ATTEST: APPROVED:
City rk President of the tity ouncil
AMENDMENT TO LEASE AND OPERATING AGREEMENT
THIS AMENDMENT entered into as of April 13 , 1998 between Pueblo, a Municipal
Corporation (the "Lessor "), and Martina A. Algin (the "Lessee "), WITNESSETH:
WHEREAS, Lessor and Lessee entered into the Pueblo Memorial Airport Lease and Operating
Agreement (the "Agreement ") dated September 23, 1996 relating to the operation of the Restaurant
in the Terminal Building at Pueblo Memorial Airport, and
WHEREAS, Lessor and Lessee are desirous of modifying the provisions of the Agreement,
NOW, THEREFORE, in consideration of the mutual covenants herein, Lessor and Lessee agree
as follows:
1. Section V. A. of the Agreement is amended to read as follows:
a. Lessee shall be exempt from the requirements for monthly rent of 7.5% of
monthly gross revenue or $ 1,000.00, whichever is greater, for the calendar year
1998.
b. Lessee shall be relieved of all rent monies currently in arrears.
2. Section XIV. of the Agreement is amended to read as follows:
a. Lessee will, on or before October 7, 1999, at Lessee's sole cost and expense,
cause patio area adjacent to the Leased premises to be enclosed in accordance
with plans and specifications approved by Lessor and all applicable laws and
building codes. All such improvements shall be and remain the property of
Lessor.
3. The Agreement as modified and amended by the Amendment to Lease and Operating
Agreement shall remain in full force and effect.
Signed in Pueblo, Colorado the day and year first above written.
[SEAL]
ATTEST: PUEBLO, A MUNICIPAL CORPORATION
._ �.
APPROVED AS TO FORM:
City Attor y
By a
President o City ouncil
LESSEE
Martina A. Algin
A V
Council Agenda
RESOLUTION APPROVING AMENDMENT TO
TITLE: RESTAURANT LEASE & OPERATING AGREEMENT AGENDA ITEM #
DEPARTMENT: PUEBLO MEMORIAL AIRPORT DATE: APRIL 13. 1998
ISSUE
Should City Council approve an Amendment to the Airport Restaurant Lease and Operating
Agreement.
RECOMMENDATION
Approval of this Resolution.
BACKGROUND
On September 23, 1996, City Council entered into a Restaurant Lease and Operating
Agreement with Martina A. Algin to operate the Restaurant at the Pueblo Memorial Airport.
Because of both an overly optimistic business outlook and the significant impact that the
new "chain" restaurants have had regarding customers and employee retention, the
Restaurant is struggling to stay viable. This problem has not been uncommon with past
restaurant operators at the Airport.
Martina A. Algin, the Lessee, would like to continue to operate the Restaurant, however,
is asking for some relief from the City in three areas. The first is to forego the monthly
rental payment of 7.5% of the "gross revenues" or $1,000.00, whichever is greater, in
1998; secondly, to write off the monies due and in arrears for 1997 ($4,832.00); and
thirdly, to delay the enclosing of the patio area until October 7, 1999.
The Restaurant is a vital asset to the Airport Industrial Park, especially during the lunch
hour, continues to generate sales tax, and provides employment opportunities.
FINANCIAL IMPACT
The City would forego the revenue for 1998 ( $12,000) and the arrears for 1997
($4,832.00).