HomeMy WebLinkAbout8414RESOLUTION NO. 8414
• RESOLUTION APPROVING A LEASE ADDENDUM BETWEEN PUEBLO,
• MUNICIPAL CORPORATION AND FLOWER AVIATION OF COLORADO,
INC., AND AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL
TO EXECUTE SAME
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1.
The Lease Addendum dated 1998 a copy of which
is attached hereto, by and Between Pueblo, a Municipal Corporation,
and Flower Aviation of Colorado, Inc., relating to the lease of
property at Pueblo Memorial Airport, 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 the Lease Addendum on behalf of Pueblo, a Municipal
Corporation, and the City Clerk is directed to affix the seal of
the City thereto and attest the same.
INTRODUCED: t -( ,1998
ATTEST:
•
By John Verna
Councilperson
APPROVED:
&z&, '/ 1� '
President f Q Council
LEASE ADDENDUM
THIS LEASE ADDENDUM entered into this oG day of MA-
1998, by and between Pueblo, A Municipal Corporation (herein
"City "), and Flower Aviation of Colorado, Inc., a Colorado
Corporation (herein "Lessee "),
W I T N E S S E T H:
WHEREAS, City and Lessee entered into a Pueblo Memorial
Airport Operating Agreement and Land lease dated September 12, 1983
for property therein described (the "Lease "), and
WHEREAS, Lessee has been previously permitted by City to
secure financing by securing its leasehold interest to Minnequa
Bank of Pueblo, and
WHEREAS, Lessee desires to obtain refinancing through U.S.
Bank, National Association, securing its leasehold interest, and
WHEREAS, the Lease prohibits Lessee from so acting without
consent of the City:
NOW, THEREFORE, in consideration of the foregoing and the
mutual promises herein contained, City and Lessee agree as follows:
1. Subject to the provisions of this paragraph, the City does
hereby consent to Lessee assigning its leasehold interest under the
Lease to U.S. Bank, National Association, (herein "Bank ") as
collateral security for the repayment of a loan from bank to
Lessee. City does further consent to Lessee mortgaging or
otherwise encumbering its interest in the leasehold estate to Bank
as security for the Loan, provided that the City's interest in and
title to the leasehold estate, if any, shall not become subordinate
or subject to any such mortgage or encumbrance. In the event that
the Lessee so mortgages or encumbers the leasehold estate, City
agrees that upon default by Lessee under the terms of the mortgage
or other instrument of encumbrance (herein "security instrument ") ,
Bank may cause said security instrument to be foreclosed in any
lawful manner and acquire Lessee's title and interest in the
leasehold estate. Bank may assign Lessee's rights therein or
sublet the leasehold estate to a tenant approved in writing by the
City pending foreclosure and acquisition of the leasehold estate,
and thereafter the Bank may assign the leasehold estate, as a
whole, to an assignee or sublessee approved in writing by City,
which approval shall not be unreasonable withheld, but no other or
additional assignment or sublease shall be made without the prior
written consent of the City. Bank and any assignee or tenant of
Bank pending foreclosure and acquisition of the leasehold estate,
approved as aforesaid, shall be liable to perform all obligations
imposed upon Lessee under the Lease and all addendums thereto
during the period Bank, or such assignee or tenant has possession
of the leasehold estate. Bank and any assignee or tenant of Bank
after foreclosure and acquisition of the Lessee's leasehold estate
under the security instrument shall be liable during the term of
the Lease as modified by any lease addendums (from July 1, 1984 to
March 31, 2006) to perform all of Lessee's obligations thereunder
(including curing defaults) unless excused therefrom by City in
writing. For the purposes of this paragraph, Bank means and
includes U.S. Bank, national Association, and any subsequent holder
of the loan.
2. This Lease Addendum incorporates the entire understanding
between the City and Lessee, and no change, modification or
amendment thereto or to the Lease shall be binding upon the City
unless embodied in a written agreement and approved by Resolution
or Ordinance of the City Council of City.
3. The Lease as amended by this Lease Addendum and all prior
Lease Addendums shall remain in full force and effect, be governed
and construed according to the laws of the State of Colorado, and
be binding upon and inure to the benefit of the successors and
assigns of the City and Lessee.
Signed the day and year first above written.
PUEBLO, A MUNICIPAL CORPORATION
ATTEST: By
Presidezft of the Council
City,!!�.lerk
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FLOWER AVIATION OF COLORADO, INC.
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ATTEST:
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