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HomeMy WebLinkAbout09475RESOLUTION NO. 9475 A RESOLUTION CONSENTING TO THE ASSIGNMENT OF THE HANGAR GROUND LEASE DATED JUNE 29, 1999 BETWEEN THE CITY OF PUEBLO AND BLITZ AVIATION, LLC, A DELAWARE LIMITED LIABILITY COMPANY BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. The Consent To Assignment, a copy of which is attached hereto, having been approved as to form by the City Attorney, is hereby approved, and the President of the City Council is authorized to execute and deliver the Consent To Assignment in the name of the City. INTRODUCED January 14, 2002 BY COUNCILP SON APPROVED: Zd�� PRE NT OF THE CITY COUNCIL ATTESTED BY: C Y CLERK Background Paper for Proposed Resolution DATE: January 14, 2001 DEPARTMENT: Law Department TITLE A RESOLUTION CONSENTING TO THE ASSIGNMENT OF THE HANGAR GROUND LEASE DATED JUNE 29, 1999 BETWEEN THE CITY OF PUEBLO AND BLITZ AVIATION, LLC, A DELAWARE LIMITED LIABILITY COMPANY ISSUE Should the City Council approve the Consent to Assignment? RECOMMENDATION Approve the Consent To Assignment. BACKGROUND The Company which is the lessee under the Hangar Ground Lease has changed its state of organization from Delaware to Colorado and has completed construction of the hangar on the leased premises. The individual members of the Company should now be released from their personal guarantees. FINANCIAL IMPACT None ASSIGNMENT This Assignment entered into as of November 12, 2001 between Blitz Aviation, LLC, a Delaware limited liability company ( "Assignor ") and Blitz Aviation, LLC, a Colorado limited liability company ( "Assignee ") WITNESSETH RECITALS A. Assignor, as Lessee, entered into a Hangar Ground Lease commencing June 29, 1999 with the City of Pueblo, as Lessor, for land at the Pueblo Memorial Airport to construct, maintain and operate a hangar facility on the leased land ( "Hangar Ground Lease "). B. Assignor has completed construction of the hangar facility which is now free of liens and encumbrances, and desires to assign the Hangar Ground Lease to Assignee. C. Assignee is willing to accept the assignment of the Hangar Ground Lease. NOW THEREFORE, in consideration of the foregoing recitals and mutual covenants contained herein, Assignor and Assignee agree as follows: Assignor transfers, sells and assigns to Assignee all of Assignor's right, title and interest in and to the Hangar Ground Lease. 2. Assignee accepts the assignment of the Hangar Ground Lease and agrees to make all payments and perform all covenants, duties, obligations and responsibilities of Lessee under the Hangar Ground Lease and to indemnify and save harmless Assignor therefrom. 3. This Assignment shall not be effective until consented to by the City of Pueblo by Resolution of its City Council. Executed at Pueblo, Colorado as of the day and year first above written. Blitz Aviation, LLC a Delaware Limited Liability Company f Name: ! c %� ��c /� Grl!� ✓i x Title: hecp� -Y d Blitz Aviation, LLC a Colorado Limited Liability Company v 7 B y: Name: Title: t` CONSENT TO ASSIGNMENT The City of Pueblo as Lessor under the Hangar Ground Lease, in reliance upon the Recitals and provisions of the foregoing Assignment, consents to the foregoing Assignment of the Hangar Ground Lease by Assignor to Assignee on the express conditions that (a) no further assignment of the Hangar Ground Lease or any part thereof shall be made without the prior written consent of the City of Pueblo, (b) the Assignor shall remain liable for the prompt payment and performance of all covenants, duties, obligations and responsibilities of Lessee under the Hangar Ground Lease, and (c) that all guarantors of the Guaranty of the Hangar Ground Lease are released from all obligation and liability under the Guaranty. Executed in Pueblo, Colorado the 14th day of January , 20W 2002. CITY OF PUEBLO, A MUNICIPAL CORPORATION By Press ent of the City Council