HomeMy WebLinkAbout09568RESOLUTION NO. 9568
A RESOLUTION APPROVING A LEASE AGREEMENT
BETWEEN THE CITY OF PUEBLO, A MUNICIPAL
CORPORATION, AND THE BESSEMER HISTORICAL
SOCIETY, A COLORADO NONPROFIT CORPORATION, FOR
THE LEASING OF SPACE WITHIN THE CF &I ANNEX
BUILDING FOR THE PURPOSE OF STORING,
MAINTAINING AND PRESERVING THE HISTORIC
ARCHIVES OF THE COLORADO FUEL & IRON
CORPORATION
WHEREAS, the City of Pueblo has, by Resolution No. 9459, entered into a Contract with
the Colorado Department of Local Affairs, EIAF Contract No. 3973 the Pueblo Neighborhood
Center, and has received from the Department of Local Affairs $300,000 payable under the
Contract, and has subsequently budgeted and appropriated said funds for the purpose of storing,
maintaining, and preserving this historic archives of the Colorado Fuel and Iron Corporation.
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that:
SF,CTION 1.
An agreement to lease for five years 43,206 square feet of space within the CF &I annex
building between the City of Pueblo, a Municipal Corporation, and the Bessemer Historical
Society, a Colorado Nonprofit Corporation, a copy of which is attached hereto and incorporated
herein having been approved as to form by the City Attorney, is hereby approved.
SECTION 2.
The President of City Council is hereby authorized to execute and deliver said Lease
Agreement in the name of and on behalf of the City of Pueblo, a Municipal Corporation, and the
City Clerk shall affix the seal of the City thereto and attest same.
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SECTION 3.
The City shall pay to the Bessemer Historical Society rent for the full five (5) year lease
term in advance in the sum of $300,000 under the terms and conditions of the lease agreement,
payment shall be made from funds received, budgeted and appropriated from EIAF Contract No.
3973 for this purpose.
INTRODUCED: March 25, 2002
BY: Robert Schilling
C CIL PERSON
APPROVED:
PRESIDENT OF CITY COUNCIL
ATTESTED BY: "'z '
Y CLERK
2
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Background Paper for Proposed
A RESOLUTION
AGENDA ITEM # l (J
DATE: MARCH 25, 2002
DEPARTMENT: PLANNING & COMMUNITY DEVELOPMENT /JIM MUNCH
TITLE
A RESOLUTION APPROVING A LEASE AGREEMENT BETWEEN THE CITY OF
PUEBLO, A MUNICIPAL CORPORATION, AND THE BESSEMER HISTORICAL
SOCIETY, A COLORADO NONPROFIT CORPORATION, FOR THE LEASING OF
SPACE WITHIN THE CF &I ANNEX BUILDING FOR THE PURPOSE OF
STORING, MAINTAINING AND PRESERVING THE HISTORIC ARCHIVES OF
THE COLORADO FUEL & IRON CORPORATION
ISSUE
The City of Pueblo has received $300,000 from the Department of Local Affairs to lease
space from the Bessemer Historical Society for the purpose of storing, maintaining,
preserving and cataloging the CF &I Archive Collection. Approval of the Resolution will
allow the City to lease 43,206 square feet of space within the CF &I annex building,
which has been acquired by the Bessemer Historical Society.
RECOMMENDATION
Approve the Resolution.
BACKGROUND
The Pueblo City Council approved Resolution No. 9459 on December 26, 2001, which
authorized the President of City Council to enter into EIAF Contract No. 3973. The City
subsequently received, budgeted and appropriated $300,000 from the Department of
Local Affairs with the intent of leasing space from the Bessemer Historical Society
within which to store, maintain, preserve, and catalogue the CF &I Archives Collection.
The Bessemer Historical Society on March 22, 2002, purchased from Rocky Mountain
Steel a portion of the former CF &I Administrative Office Complex, including the historic
headquarters building, the annex building, and the medical dispensary.
1
The five -year lease, with the Bessemer Historical Society for a portion of the annex
building will allow the Bessemer Historical Society to move the archives currently stored
within the historic headquarters building the medical dispensary and the plant into the
annex. With the collection removed from the two historic structures, the Bessemer
Historical Society can begin the stabilization, rehabilitation and development of the
historic headquarters and dispensary buildings into an archival museum facility for the
permanent conservation and public display of the historic archives of the Colorado Fuel
and Iron Corporation. The City will pay to the Bessemer Historical Society for the full
five (5) year lease term in advance the sum of $300,000.
FINANCIAL IMPACT
The Department of Local Affairs has transferred to the City, and the City of Pueblo has
appropriated and budgeted the $300,000, which will be used to pay the lease. There is no
City match requirement for this grant. Funding for this Contract will come from the local
government Mineral Impact Fund. These are considered federal dollars for TABOR
accounting purpose. Although, there is a provision of the Contract 6(b), which states: "It
is expressly understood that if the Contractor receives funds from this Contract in excess
of its fiscal year spending limit, all such excess funds from this Contract shall revert to
the State. Under no circumstances shall excess funds from this Contract be refunded to
other parties.
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LEASE AGREEMENT
THIS LEASE AGREEMENT entered into as of March 25, 2002 between Bessemer
Historical Society, a Colorado nonprofit corporation, 1612 E. Abriendo Avenue, Pueblo, Colorado,
81004 (herein "Landlord ") and City of Pueblo, a municipal corporation, 1 City Hall Place, Pueblo,
Colorado, 81003 (herein "Tenant "). WITNESSETH:
RECITALS
A. Landlord is or will be the owner of the property and improvements thereon legally
described in the attached Exhibit A (the "Property").
B. Located on the Property is the building commonly known as the CF &I Annex
Building with the street address of 1612 East Evans, Pueblo, Colorado, 81004 (the "Building ").
C. Landlord desires to lease 43,206 square feet of space in the Building shown on the
building floor plans attached hereto as Exhibit B (the "Premises ").
D. Landlord desires to lease the Premises to Tenant and Tenant is willing to lease the
Premises from Landlord.
LEASE
In consideration of the foregoing Recitals and mutual covenants contained herein, Landlord
and Tenant agree as follows:
1. Demise Landlord leases to Tenant and Tenant leases from Landlord the Premises
upon the terms and provisions of this Lease.
2. Use Tenant will use the Premises for the storage, maintenance and preservation of
the historic archives of the Colorado Fuel and Iron Corporation.
3. Term The Lease Term shall be five (5) years commencing on the date Landlord
acquires marketable fee simple title to the Property free of liens and encumbrances (the
"Commencement Date ") and ending sixty (60) months thereafter. Neither the Lease Term nor this
Lease may be terminated by Landlord. If Landlord does not acquire such title to the Property on or
before July 23, 2003, Tenant may cancel and terminate this Lease and the parties shall be released
from all obligations hereunder.
4. Rent Tenant shall pay to Landlord rent for the full five (5) year Lease Term in
advance in the sum of Three Hundred Thousand and No /100 Dollars ($300,000.00) (the "Rent ").
Rent shall be paid on Commencement Date subject to receipt of Rent by Tenant from the State of
Colorado through the Department of Local Affairs (the "State ") under Contract EIAF -43973 between
Tenant and State.
5. Payments by Tenant Tenant and Landlord acknowledge and agree that all financial
obligations of Tenant hereunder shall constitute currently budgeted expenditures of Tenant, if
specifically appropriated by Tenant for that purpose. The financial obligations of the Tenant under
this Lease shall be from year to year only, and shall not constitute a mandatory payment obligation
of the Tenant in any fiscal year beyond a fiscal year during which funds are specifically budgeted and
appropriated for such purpose.
No provision of this Lease shall be construed or interpreted as creating a general obligation
or other indebtedness of Tenant within the meaning of any constitutional, statutory or Charter debt
limitation. No provision of this Lease shall be construed or interpreted as a delegation of
governmental powers nor as a donation by or a lending of the credit of Tenant, or as creating a
multiple - fiscal year direct or indirect debt or other financial obligation whatsoever of Tenant or a
general obligation or other indebtedness of Tenant within the meaning of any constitutional Charter
or statutory debt limitation, including without limitation, Article X, Section 20 or Sections, 1, 2 or
6 of Article XI of the Constitution of the State. This Lease shall not directly or indirectly obligate
Tenant to make any payments beyond those appropriated for any fiscal year in which this Lease shall
be in effect. No provision of this Lease shall be construed to pledge or to create a lien on any class
or source of Tenant moneys, nor shall any provision of this Lease restrict the future issuance of any
Tenant's bonds or obligations payable from any class or source of Tenant moneys.
6. Archival Museum During the five (5) year Lease Term, Landlord will develop on
the Property an archival museum facility for the permanent conservation and public display of the
historic archives of the Colorado Fuel and Iron Corporation.
7. Taxes Landlord shall pay before delinquent all real estate taxes levied or assessed
against the Property including the Building and Premises. Tenant shall pay all taxes levied or
assessed upon Tenant's equipment, furniture, fixtures, and other personal property located in the
Premises.
8. Utilities Landlord shall promptly pay the cost of all utility service which are used
or consumed in the Premises whether or not such utility is separately metered.
9. Repairs Landlord shall keep and maintain in good repair and condition the Property,
including the Building and Premises and Landlord's adjacent parking area.
10. Quiet Enjoyment Tenant shall, and may peacefully have, hold and enjoy the
Premises, subject to the other terms hereof, provided that Tenant pays the Rental herein recited and
performs all of Tenant's covenants and agreements herein contained.
11. Alterations Tenant may make any additions, alterations or improvements in or to the
Premises ( "Alterations ") with the Landlord's written consent which shall not be unreasonably
withheld or delayed. Tenant shall have the right to remove or replace its furniture, equipment,
removable trade fixtures and Alterations, provided Tenant repairs any damage caused by such
removal. The failure of Tenant to remove its fixtures, Alterations, or any of its property within thirty
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(30) days after the termination of this Lease shall be deemed abandonment of such property at the
option of Landlord.
12. Right of End Landlord reserves and shall at all reasonable times and upon forty -
eight (48) hours prior written notice given to Tenant, have the right to enter the Premises to inspect
the same, and to alter, improve, or repair the Premises and any portion of the Building without
abatement of rent, and may for that purpose erect, use and maintain scaffolding, pipes, conduits and
other necessary structures in and through the Premises where required by the character of the work
to be performed, provided entrance to the Premises shall not be denied Tenant, and further provided
that the business and occupancy of Tenant shall not be unreasonably interfered with. For each of the
aforesaid purposes, Landlord shall at all times have and retain a key with which to unlock all of the
doors in, upon or about the Premises, and Landlord shall have the right to use any and all means
which Landlord may deem necessary or proper to open such doors in an emergency in order to obtain
entry. Any such entry to the Premises shall not be construed or deemed to be a forcible or unlawful
entry into, or a detainer of, the Premises, or an eviction, of Tenant. Tenant shall permit Landlord (or
its designees) to enter the Premises to erect, use, maintain, replace and repair, pipes, cables, conduits,
plumbing, vents and telephone, electric and other wires or other items, in, to and through the
Premises, as and to the extent reasonably necessary or appropriate for the proper operation and
maintenance of the Building. All such work shall be done in such manner as to minimize
interference with Tenant's occupancy and use of the Premises.
13. Liability Insurance Tenant shall, at Tenant's expense, maintain during the term of
this Lease a policy or policies of commercial general liability insurance with the premiums thereon
fully paid on or before due date, issued by and binding upon an insurance company authorized to do
business in the State of Colorado, or shall continue its participation in CIRSA. Such insurance or
participation in CIRSA shall afford minimum protection of not less than the amounts provided in
the Colorado Governmental Immunity Act, Article 10 of Title 24, C.R.S. Any public liability
insurance acquired in accordance with this Section may be blanket insurance policy or policies.
14. Casualty Insurance Landlord shall maintain casualty and property damage insurance
on the Property including the Building and Premises. Said insurance shall be maintained with an
insurance company authorized to do business in Colorado, in amounts not less than full replacement
value of the Building including the Premises and at the expense of Landlord, and payments for losses
thereunder shall be made jointly to Landlord and Tenant and used solely for the repair and
replacement of the losses. Tenant shall maintain at its expense casualty and property damage
insurance on all of its personal property, including removable trade fixtures, located in the Premises.
Whenever (i) any loss, cost, damage or expense resulting from any peril described in this
paragraph 14 is incurred by any party to this Lease in connection with the Building or Premises, or
any part or contents thereof, and (ii) such parry is then covered in whole or in part by insurance with
respect to such loss, cost, damage or expense, then the parry so insured hereby releases the other
party, its officers, agents and employees from any liability it may have on account of such loss, cost,
damage or expense to the extent of any amount recovered by reason of such insurance and waives
any right of subrogation which might otherwise exist in or accrue to any person on account thereof.
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If either Landlord or Tenant fails to maintain in force any insurance required by this Lease to be
carried by it, then for purposes of this waiver of subrogation the parry failing to carry such insurance
shall be deemed to have been fully insured and to have recovered the entire amount of its loss.
15. Casual . If the Building or Premises shall be damaged by fire or other casualty,
Landlord shall repair and restore the same to their condition existing on the date of this Lease, and
the Lease Term shall be extended by the time necessary to make the Premises tenantable by
Landlord. Landlord shall immediately commence all repairs and restoration of the Building and
Premises caused by any such casualty or fire and diligently prosecute same to completion.
16. Public Taking If the Premises, or any part thereof, is taken by or transferred under
threat of condemnation, this Lease shall terminate on the date the Premises shall be so taken or
transferred and the $300,000 advance rent shall be apportioned as of that date. No part of any
condemnation award or payments in lieu thereof made by the condemning authority shall belong to
the Tenant, except the Tenant shall be entitled to repayment of advance rent for the balance of the
Lease Term and to payments made by the condemning authority for Alterations made to the Premises
by Tenant and relocation expenses.
17. Default
(a) If either Landlord or Tenant defaults in the performance of any covenant or
condition which it is required to observe and to perform hereunder, and such default shall continue
for thirty (3 0) days after the non - defaulting party gives written notice thereof to the defaulting party,
the non - defaulting party shall, except as otherwise provided in (b) below, have in addition to any
other remedy provided by law, the right to have specific performance by the defaulting party of the
defaulted covenant or condition.
(b) Tenant has paid rent in full for the five year Lease Term. Landlord and Tenant
stipulate and agree that under no circumstance or condition may Landlord terminate this Lease Term
or the Lease, retake possession of the Premises during the Lease Term, or remove Tenant from
possession of the Premises during the Lease Term.
18. Non - Waiver Failure of either Landlord or Tenant to declare any breach or default
immediately upon occurrence thereof, or delay in taking any action in connection therewith, shall
not waive such breach or default, but Landlord or Tenant, whichever is applicable, 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.
19. Assignment Or Sublease Tenant may assign this Lease or sublet all or any portion
of the Premises without the consent of Landlord.
20. Parking Landlord hereby assigns to Tenant and Tenant shall have the right to use
thirty (30) outdoor parking spaces in the parking area adjacent to the Building. In addition, Tenant
may, subject to availability and Landlord's rules and regulations relating thereto, use for itself or its
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invitees and employees parking spaces not assigned to other Tenants of the Building or reserved for
Landlord or its employees. Tenant shall self - police its assigned spaces and Landlord shall not be
liable if others (including other tenants) park in or obstruct Tenant's assigned spaces.
21. Recording - Short Form Memorandum Tenant and Landlord shall execute a short
form memorandum of this Lease in recordable form which shall be placed of record.
22. Subordination To Mortaaae This Lease shall not be or be made subordinate to any
mortgages or deeds of trust or other lien which may now or hereafter encumber the Property
including the Building and Premises, or to all renewals, modifications, consolidations, replacements
and extensions thereof.
23. 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 firm 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.
24. Attorney's Fees In the event of any litigation arising out of this Lease, the Court shall
award to the prevailing party its costs and reasonable attorney fees. Venue for any such action shall
be Pueblo County, Colorado.
25. Successors And Assigns This Lease shall be binding upon and inure to the benefit
of the successors and assigns of Landlord and Tenant.
26. Miscellaneous
(a) The pronouns of any gender shall include the other genders, and either the
singular or the plural shall include the other.
(b) Landlord and Tenant acknowledge and agree that they have not relied upon
any statements, representations, agreements or warranties except such as are expressed herein. 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.
(c) 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.
(d) This Lease is made in and shall be governed by and interpreted in accordance
with the laws of the State of Colorado.
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IN WITNESS WHEREOF, the parties hereto have executed this Lease as of the date
aforesaid.
LANDLORD:
BESSEMER HISTORICAL SOCIETY
By ' By
President
Attest:
Secretary
COUNTY OF PUEBLO )
STATE OF COLORADO ) ss.
TENANT:
CITY OF PUEBLO,
A MUNICIPAL CORPORATION
President of the City Council
Attest: , I, P, ----
City Yk
The foregoing instrument s acknowledge be me. this -2&A day of
Q' �� , 2002 by (� ,Q,4.fi1fC LL. ak as President of
Bessemer Historical Society, a Colorado nonprofit corporation.
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my hand and official seal.
expires: b-21-2003
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id'r Io;ni ^gin Expires 0812112003
COUNTY OF PUEBLO )
STATE OF COLORADO ) ss.
The foregoing instrument was ackn wledged before me this day of
2002 by M C ( i6JO , as President of the
City Council of the City of Pueblo, a municipal corporation.
Witness my hand and official seal.
.s
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03/15/02 14:11 GENERAL ACCOUNTING i 719 546 1558 NO.743 901
TRANSNATION TITLE rNSMRANCE COMPANY
Coamitment No.s 7575194
5C8EDOLE A - Continued
LEGAL DESCAIFTION
Lots 10, 11, 26, 27, 28, and 29, Block 9, Suburban Land and InvestMent
Company's Subdivision, TOGETHER WITH Cbat portion of the vacated alley
adjacent to said lots and TOGETHER WITH the West 112 of vacated Schley
Street adjacent to said Lots 25, 27 28 and 29.
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Lots 8, 9, 10 and 11, Block 13, Suburban Land and Investment CwVany's
Subdivision, TOGETHER WITH the East 1/2 of vacated Schley Street adjacent
to said Lots.
Page 2
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