HomeMy WebLinkAbout8599RESOLUTION NO. 8599
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 THE 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.
A EST:
City erk
INTRODUCED December 28 , 1998
BY: Al Gurule
Councilperson
APP VED: _
President oft Cou cil
0
;: -� /Z- 2Y- V
COUNCIL BACKGROUND PAPER
RESOLUTION: A RESOLUTION APPROVING AN
AMENDMENT TO RESTAURANT LEASE & OPERATING
AGREEMENT
DEPARTMENT: Aviation
I. ISSUE
Should City Council approve an Amendment to the Airport
Restaurant Lease and Operating Agreement.
II. RECOMMENDATION
Approval of this Resolution
III. 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.
On April 13, 1998 City Council amended the lease to forgo the
monthly lease payment (7.5 % of the gross revenues or $1,000
whichever is greater) for 1998 because of the significant impact that
the new "chain" restaurants had on the business.
Ms. Algin is proposing that the lease be modified to reduce the
monthly lease payment to 2% of gross revenues or $225.00 per month
whichever is greater. She will continue to pay all the utilities and
insurance expenses.
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.
AMENDMENT TO LEASE AND OPEATING AGREEMENT
THIS AMENDMENT entered into as of December 28, 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, 1998 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:
Section V. A. of the Agreement is amended to read as follows:
a. Lessee agrees to pay to the Lessor, without offset or deduction, at such
places as the Lessor may designate from time to time, for the use of the
premises, facilities, concession rights and privileges, a monthly rent of 2%
of monthly gross revenue or $225.00 whichever is greater.
2. 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
PA- e,_ Lzmlsj�_ By
:aZ
City rk President f City Council
APPROVED AS TO FORM: LESSEE
By i
City Attorney Martina A. Algin
DEC -21 -98 MON 10:12 AM PUEBLO MEMORIAL AIRPORT FAX NO. 1 719 948 4878 P. 02
Airport Reghtel"Alit, Pueblo
Pueblo Memorial Airpoet
31201 Bryan (circle
--„ 1 Pueblo, Colorado 91001
December 15, 1998
Mr. Lewis Quigley
City Manager
#1 City Hall Place
PO Box 1427
Pueblo, CO 81002
re; Airport Restaurant Lease
Dear Mr, Quigley,
11iis letter is to request a revision to the lease between the City of Pueblo and Martina A. Algin
d.b.a. Airport Restaurant.
Tn March of 1997 the City of Pueblo agreed to forego rents for 1997 and 1998. Although busi-
ness still has not met expectations due to tremendous competition from the 1-25 corridor, T feel
the City is entitled to rent monies, 1 would like to offer 2% of gross or $ 225,00 per month,
whichever is greater, as a revision to the remainder of the lease. September, 2001, the lease
will be renegotiated for an additional 5 year option with much higher expectations.
I believe that Pueblo's Airport will become busier as our population increases and I am com-
mitted to being here as that occurs. Although the City of Pueblo is not receiving the full sum as
originally agreed, I am continuing to pay all utilities and insurance. I am providing employ -
ment and sales tax revenues, and fulfilling the needs of our rapidly developing industrial parr
community to the best of my abilities. 'Thank you for your consideration.
Sincerely,
4
Martina A. Algin
1'lonc, (719) 948 - 4195 Fax, (719) 948 - 3815