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HomeMy WebLinkAbout8572RESOLUTION NO. 8572 A RESOLUTION APPROVING A GROUND LEASE BETWEEN PUEBLO, A MUNICIPAL CORPORATION AND THE PUEBLO CHAMBER OF COMMERCE RELATING TO THE LONG -TERM LEASE OF THE LAND LOCATED UNDER THE PUEBLO CHAMBER OF COMMERCE'S BUILDING AND AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL TO EXECUTE SAME BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1 The Ground Lease dated December 1, 1998 between Pueblo, a Municipal Corporation and the Pueblo Chamber of Commerce relating to the land located under the Pueblo Chamber of Commerce's building, 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 Ground Lease in the name of the City and the City Clerk is directed to affix the seal of the City thereto and attest same. INTRODUCED November 23, 1998 BY: Corinne Koehler Councilperson APPROVED: President o0he C until ATTEST: 0 WX W­ Mk 4 COUNCIL BACKGROUND PAPER RESOLUTION: A RESOLUTION APPROVING A GROUND LEASE BETWEEN PUEBLO, A MUNICIPAL CORPORATION AND THE PUEBLO CHAMBER OF COMNIERCE RELATING TO THE LONG- TERM LEASE OF THE LAND LOCATED UNDER THE PUEBLO CHAMBER OF COMMERCE'S BUILDING AND AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL TO EXECUTE SAME. DEPARTMENT CITY MANAGERS OFFICE I. ISSUE Authorization of a ground lease to the Pueblo Chamber of Commerce at 3 rd Street and Santa Fe Avenue H. BACKGROUND The Chamber of Commerce currently has a "air lease" for their offices located at 3 rd and Santa Fe. They are embarking on a construction addition that will require the enclosing of the land below their current facility. They are therefore asking for a "ground lease" for the project. Their current lease is for a period of one hundred years (100) with expiration ending June 30, 2068. This lease is for 69 years and 7 months with the same expiration date. This lease also provides for two (2) 20 -year . renewable options and the leasing of twenty (20)- parking spaces at the 4 h and Santa Fe City owned parking lot. The rate for parking is at the current rate of $25.00 per space per month. The parking is necessary to be in compliance with the Code of Ordinances for the addition to the building. III. FINANCIAL EMPACT The City will receive $500 per month for parking and $1.00 per year for the lease. r V Vill Hill 11111111111111111111 IlIli Ili 1111111111111 Hill 111111 IN 1370784 02/23/2001 11:47A LEASE Chris C. Munoz 1 of 8 R 40.00 0 0.00 Pueblo Cty Clerk & Rae GROUND LEASE THIS GROUND LEASE entered into as of December 1, 1998 between Pueblo, a municipal corporation, 1 City Hall Place, Pueblo, Colorado, 81003 (the "Landlord ") and Pueblo Chamber of Commerce, a Colorado nonprofit corporation, 302 North Santa Fe Avenue, Pueblo, Colorado, 81003 (the "Tenant "). 1. Premises Landlord leases to Tenant and Tenant leases from Landlord subject to and upon the terms and provisions of this Lease, the land described in attached Exhibit A (the "Land "). Tenant has constructed and intends to construct a building on and over the Land (the "Building "). The Land and Building are herein referred to collectively as the "Premises." 2. Condition of The Premises Tenant acknowledges and agrees that: (a) Tenant is leasing the Land on an "AS IS" basis in its present condition. Landlord hereby disclaims any warranty or representation, express or implied, with respect to any aspect, portion or component of the Premises, including but not limited to: (i) the quality, quantity, nature or condition of the Premises, including the quality of the soil under the Premises, (ii) the fitness of the Premises for any particular use, (iii) the presence or suspected presence of hazardous materials on, in, under or about the Premises, or (iv) existing or proposed governmental laws or regulations applicable to the Premises, or the further development or changing use thereof, including environmental laws and laws or regulations relating to zoning, land use or building, or the existence of any approvals or authorizations of any kind or nature of or from any governmental authority. (b) Tenant agrees that it has not relied on any representation, statement, or warranty of Landlord, or anyone acting for or on behalf of Landlord, and all matters concerning the Premises have been or will be independently verified by Tenant. (c) Landlord shall not be responsible or liable for any defect in, or condition of the Premises nor obligated to make any repairs, alterations, improvements or additions to the Premises. 3. Use The Premises shall be continuously used and occupied by Tenant solely for Chamber of Commerce office purposes and such other purposes as are incidental to Tenant's business conducted on the Premises. Tenant shall use the Premises in a careful, safe and proper manner and shall not use nor allow the Premises to be used for any improper or unlawful purpose. Tenant shall not cause, maintain or permit any nuisance or waste in, on, or about the Premises. 4. Rent Tenant agrees to pay to Landlord, without notice, demand, setoff or deduction, annual rent in the amount of One Dollar ($1.00) per year in advance on or before the first day of December 1 of each year during the term of this Lease, commencing December 1, 1998. Rent shall be paid at the office of the City's Director of Finance. 5. Term The term of this Lease shall be sixty -nine (69) years and seven (7) months, IIIIIIIIIIIIIIIIIIIIIII IIIII III IIIIIII Ili IIIII IIII IN 1370784 02/23/2001 11:47A LEASE Chris C. Munoz 2 of 8 R 40.00 0 0.00 Pueblo Cty Clerk 8 Roo commencing on December 1, 1998 and ending June 30, 2068 both dates inclusive, unless sooner terminated as herein provided. If Tenant is not in default hereunder, Tenant shall have the option to extend the term of this Lease upon the same covenants and provisions for two (2) consecutive twenty (20) year periods upon giving to Landlord written notice of Tenant's exercise of this option at least two (2) years prior to the end of the original term or first extended term, whichever the case may be. If Tenant fails to timely give to Landlord notice of its exercise of the options hereby granted, the options shall automatically cancel and this Lease shall terminate upon the expiration of the current term. 6. Taxes Tenant shall pay, before delinquent, any and all tax, assessments and other charges imposed, levied or assessed against the Premises, Tenant's personal property located therein or Tenant's activities conducted on the Premises. 7. Utilities Tenant shall, at its sole cost and expense, cause all utilities which are used or consumed on the Premises to be extended underground to the Premises. Tenant shall pay all charges and costs of such utility services and extensions. 8. Easements Landlord will grant to Tenant easements on, over and under Landlord's adjacent property for the installation of underground utilities to serve the Premises and access to and from the Premises (the "Easements "). The exact location of the Easements shall be established by the City after consultation with Tenant and the legal description of the Easements shall be set forth in writing, dated and signed by Landlord and Tenant, and attached to this Lease as Exhibit "B ". 9. Improvements Tenant, at its sole cost and expense, may improve, modify, alter or replace the Building and extend utilities as permitted in paragraph 7 hereof (collectively the "Improvements "). Improvements shall be made, installed, constructed and maintained in compliance with all applicable laws, regulations and codes. During construction and installation of Improvements, Tenant, subject to prior written approval of the City's Director of Public Works with respect to location, conditions and time of use, which approval will not be unreasonably withheld, shall have the right to the temporary use of that portion of Landlord's adjacent property which is necessary to effect the construction and installation of Improvements. Tenant shall be responsible for and shall repair any and all damage to Tenant's adjacent property caused by or resulting from such temporary use. Tenant's use of the Premises and the construction and installation of Improvements shall not unreasonably interfere with Landlord's or the public's use of Landlord's adjacent property or access thereto. As used in this Lease, the term "Building" includes all Improvements. The Building free and clear of all liens and encumbrances shall become the property of Landlord at the termination of this Lease and Tenant shall, except as provided in paragraph 11 hereof, surrender the Premises to Landlord in good condition and state of repair, reasonable wear and tear excepted. 10. Repairs Tenant, at its expense, shall keep and maintain the Premises in good condition and state of repair. -2- I Iillll I'I'I IIIII I'IIII�'I'II'II IIIIIII III 11111 IIII IIII 1370784 02/23/2001 W 47A LEASE Chris C. Munoz 3 of 8 R 40.00 D 0.00 Pueblo Cl.y Clerk & Ree 11. Casual 1y. If the Building shall be damaged by fire or other casualty so as to render the Building untenantable and Tenant elects in writing delivered to Landlord within one hundred twenty (120) days after the date of the fire or other casualty not to rebuild or repair the Building, this Lease shall terminate and Tenant shall no later than one hundred eighty (18 0) days after the date of the fire or other casualty, remove all debris, foundations and other Improvements from the Land and restore the Land to substantially the same condition as it existed at the time Tenant originally entered upon the Land in 1969. If Tenant does not so terminate this Lease, Tenant shall repair, restore or rebuild the Building in an expeditious time and manner. 12. Insurance Tenant shall, at Tenant's expense, maintain in full force and effect during the term of this Lease (i) commercial liability insurance including contractual coverage with a combined single limit of not less than $1 million, (ii) fire and extended coverage insurance on the Building and builder's risk during construction of Improvements, in amounts not less than the full insurable value of the Building or Improvements, and (iii) worker's compensation insurance as required by the laws of the State of Colorado. Tenant shall at Landlord's request furnish Landlord with certificates for such insurance. 13. Indemnification Tenant shall indemnify, defend and hold harmless Landlord, its officers, agents and employees from and against any and all claims or liability for any injury or damages to any person, including death and personal injury, or to property occurring in or about the Premises or any part thereof, or on or about Landlord's adjacent property during its use by Tenant, caused by or resulting directly or indirectly, in whole or in part, from the negligent acts or omissions of Tenant, its officers, agents, employees or contractors or arising out of or resulting from Tenant's use or occupancy of the Premises or Landlord's adjacent property or any equipment thereon or appurtenances thereto. 14. Assignment or Sublease Neither this Lease nor any part of the Premises shall be assigned or sublet without the prior written consent of the Landlord, which consent shall not be unreasonably withheld, but may, in Landlord's sole discretion, be conditioned upon (i) an adjustment in rent to an amount equivalent to the fair market rental value of the Land and Easements over the remaining term of this Lease, and (ii) not releasing Tenant from any of its obligations under this Lease, and (iii) restricting the use of the Premises to office uses compatible with the public use of surrounding properties. 15. Breach of Lease If default shall be made in the payment of any sum to be paid by Tenant under this Lease, or default shall be made in the performance of any of the other covenants or conditions which Tenant is required to observe and to perform, and such default shall continue for sixty (60) days after written notice thereof is given by Landlord to Tenant, or if this Lease or possession of the Premises shall, by act of Tenant or by operation of law or otherwise, pass to any party other than Tenant, except with the prior written consent of Landlord, or if Tenant be declared insolvent according to law, or if any assignment of Tenant's property shall be made for the benefit of creditors, or if a receiver or trustee is appointed for Tenant or Tenant's property, or if Tenant shall abandon or vacate the Premises, then Landlord may treat the occurrence of any one or more of the -3- 111111 IIIII IIII 1111111IIIII ill illllll III IIIII IN IN 1370784 02/23/2001 11:47A LEASE Chris C. Munoz 4 of 8 R 40.00 D 0.00 Pueblo Cty Clerk 8 Rae foregoing events as a breach of this Lease. 16. Remedies Upon Breach In the event of a breach of this Lease by Tenant, Landlord, in addition to all other rights and remedies provided at law or in equity, may terminate this Lease upon ten (10) days' prior written notice to Tenant and forthwith repossess the Premises and remove the Tenant or any person occupying the Premises. In the event of such termination, Tenant shall surrender and deliver possession of the Premises to Landlord. 17. Non - Waiver Failure of Landlord to declare any breach or default immediately upon occurrence thereof, or delay in taking any action in connection therewith, or accepting partial or full payment of rent with knowledge of such breach or default, shall not waive such breach or default, but Landlord shall have the right to declare any such breach or default at any time and take such action as might be lawful or authorized hereunder, either at law or in equity. 18. Quiet Enjoyment Tenant shall, and may peacefully have, hold and enjoy the Land, subject to the other terms hereof, provided that Tenant pays the rent herein recited and performs all of Tenant's covenants and agreements herein contained. 19. Notices All notices and demands which may be or are required to be given by either party to the other hereunder shall be in writing, and delivered in person or sent by United States certified mail, postage prepaid. Notices and demands to Tenant shall be addressed to it at the address indicated in page 1, or to such other place as the Tenant may from time to time designate in a written notice to the Landlord. Notices and demands to the Landlord shall be addressed to it at the address indicated in page 1, or to such other place as Landlord may from time to time designate in a written notice to the Tenant. All notices shall be deemed given on the date of such delivery or mailing. 20. Attorney's Fees In the event of any litigation arising out of this Lease, the Court shall award to the prevailing party all cost and expense of litigation including reasonable expert witness and attorney fees. 21. Successors and Assigns This Lease shall be binding upon and inure to the benefit of the successors and assigns of Landlord, and shall be binding upon and inure to the benefit of Tenant and Tenant's successors and assigns to the extent assignment may be approved by Landlord hereunder. 22. Termination of Other Leases The Air Space Lease Agreement between Landlord and Tenant dated July 1, 1969 and all amendments thereto are hereby terminated and canceled effective the date of this Lease and Landlord and Tenant are released from all future obligations thereunder. 23. Miscellaneous (a) The pronouns of any gender shall include the other genders, and either the In 111111111111111111111111111111111111111111111111111 IN 1370784 02/23/2001 11:47A LEASE Chris C. Muno: singular or the plural shall include the other. 3 of 8 R 40.00 D 0.00 Pueblo Cty Clerk 8 Ree (b) The rights and remedies of Landlord hereunder, and any other rights and remedies provided by law shall be construed as cumulative and no one of them is exclusive of any other right or remedy. Such rights and remedies shall further be continuing rights, none of which shall be exhausted by being exercised on one or more occasions. Landlord shall be entitled to an injunction or the appointment of a receiver for Tenant in proper cases upon ex parte application therefor to enforce any part or parts of this Lease or to prevent or stop any violation, breach or default on the part of Tenant. (c) Whenever in this Lease Landlord reserves or is given the right and power to give or withhold its consent to any action on the part of Tenant, such right and power shall not be exhausted by its exercise on one or more occasions, but shall be a continuing right and power for the full term of this Lease. (d) No amendment or modification of this Lease shall be valid or binding unless expressed in writing and executed by the parties hereto in the same manner as the execution of this Lease. (e) If any clause or provision of this Lease is illegal, invalid or unenforceable under present or future laws effective during the term of this Lease, then and in that event, it is the intention of the parties hereto that the remainder of this Lease shall not be affected thereby. (f) This Lease is made in and shall be governed by and interpreted in accordance with the laws of the State of Colorado. 24. Parking Landlord shall make available to Tenant and Tenant shall lease from Landlord twenty (20) parking spaces in Landlord's parking lot located at Fourth Street and Santa Fe Avenue, Pueblo, Colorado, ( "Parking Lot ") upon and subject to the following covenants and conditions: (a) The parking spaces are to be used by Tenant and its employees, customers and invitees for the purpose of parking motor vehicles during the hours of 6:00 a.m. to 6:00 p.m. during weekdays and Saturdays. During all other times, such use will be shared with the general public on • first- come -first -serve basis. Motor vehicles will be parked only within marked spaces and display • current parking permit issued by the City. (b) Tenant will pay to City, monthly, in advance, without notice, demand, offset or deduction, monthly rent in the minimum amount of $25.00 for each parking space or a total minimum monthly rent of $500.00 for the twenty (20) parking spaces. Landlord reserves the right, from time to time, to increase the monthly rent for the parking spaces provided such increased rent shall be comparable to rent for parking spaces in City's other municipal parking lots in the downtown area of the City and not greater than rents charged at private parking lots or facilities in the -5- 111111111111111111111111111111111111111111111111111 IN 1370784 02/23/2001 11:47A LEASE Chris C. Muno: 6 of 8 R 40.00 D 0.00 Pueblo Ct.y Clerk 8 Roe downtown area of the City. Tenant will pay the increased rent commencing the first day of the third calendar month after the month in which Tenant is given written notice by Landlord of such rent increase. (c) Landlord shall not be responsible for, and shall have no obligation to (i) enforce this parking provision against any persons who park in, or otherwise obstruct Tenant's use of the parking spaces, or (ii) to make repairs of any kind upon or to the Parking Lot or parking spaces hereby leased. (d) If Tenant defaults in the timely payment of the monthly rent, Landlord may immediately terminate this parking provision and parking space lease if Tenant fails to correct such default within sixty (60) days after written notice is given to Tenant by Landlord specifying the default. Landlord may also terminate this parking provision and parking space lease at any time, with or without cause, and without penalty or liability, upon one (1) year's prior written notice given to Tenant specifying the date of termination, if, in the sole judgment of City, the parking spaces or the Parking Lot is needed or required by Landlord for any public purpose. This parking provision and lease of parking spaces shall also terminate upon termination of the Lease. (e) In order for the Building to be in compliance with Section 17 -4 -44 of the Pueblo Municipal Code, Tenant understands and agrees, that if the parking provision and parking space lease is terminated for any reason, Tenant shall replace at another location the hereby leased parking spaces with twenty (20) other and additional off - street parking spaces meeting the requirements of said Section 17 -4 -44. (f) Tenant shall not transfer or assign any of Tenant's interest in this parking provision or sublet the parking spaces or any portion thereof. (g) The provisions and covenants of paragraphs 5, 12, 13, 17, 19, 20, 21, and 23 of the Lease are applicable to and incorporated into this parking provision and lease of parking spaces. (h) In the event of any conflict between the provisions of the Lease and the provisions of this paragraph 24, the provisions of this paragraph 24 shall control to the extent of such conflict. (i) Landlord shall have the right, without penalty or liability, to temporarily close the Parking Lot and deny access to and use of the parking spaces by Tenant when, in the sole discretion of Landlord, such temporary closure is required for repair, modification and/or expansion of the Parking Lot. If such temporary closure exceeds ten (10) days, the monthly parking rent shall be prorated. IN WITNESS WHEREOF, the parties hereto have executed this Lease as of the date aforesaid. 01 IIIIII IIIII IIIII IIIIIII IIIII III IIIIIII 111 IN IN 1370784 02/23/2001 11:47A LEASE Chris C. M6 7 of 8 R 40.00 D 0.00 Pueblo C!y Clerk 8 Roe LANDLORD: TENANT: PUEBLO, A MUNICIPAL CORPORATION PUEBLO CHAMBER OF COMMERCE IIn J APP AS TO FORM: -7- 1 •. 1` IIIIIIIIIIII VIIIIIIIIIIIIIIIIIIIIIIIII III 1370784 02/23/2001 11:47A LEASE Chris C 1111 IN 8 of 8 R 40.00 D 0.00 Pueblo Ct,y Clerk & Rec EXHIBIT A TO THE LEASE AGREEMENT BETWEEN PUEBLO, A MUNICIPAL CORPORATION AND PUEBLO CHAMBER OF COMMERCE The following described property located in that part of the City of Pueblo, Pueblo County, Colorado, which was surveyed and platted by H.M. Fosdick, Civil Engineer, for the Probate Judge of said Pueblo County in March 1869 as shown by the recorded plat thereof. The East 56 feet of the West 105 feet of the South 4 feet of Lot 1, Block 21, and the East 56 feet of the West 105 feet of the North 48 feet of vacated 3rd Street. -8-