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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 A , FLOWER AVIATION OF COLORADO, INC. - `� ' ATTEST: )d e retary