HomeMy WebLinkAbout10603u
LF L
Background Paper for Proposed
RESOLUTION
/&b. -
AGENDA ITEM # /
DATE: December 27, 2005
DEPARTMENT: AVIATION - DANIEL E. CENTA, P.E.
TITLE
A RESOLUTION CONSENTING TO THE ASSIGNMENT OF THE CREDIT CARD
SELF SERVE FUELING OPERATION GROUND LEASE BETWEEN THE CITY OF
PUEBLO, A MUNICIPAL CORPORATION, AND AIRPORT PROPERTIES, INC., A
TEXAS CORPORATION, TO SIBRAN PROPERTIES, LLC AND AUTHORIZING
THE PRESIDENT OF CITY COUNCIL TO EXECUTE SAME
ISSUE
Should City Council consent to the assignment of a Credit Card Self Fueling Operation
Ground Lease ( "Lease ") between the City of Pueblo and Airport Properties, Inc. to
Sibran Properties, LLC.
RECOMMENDATION
Approval of this Resolution.
Airport Properties entered into a Credit Card Self Fueling Operation Ground Lease with
the City on February 25, 2002. The Lease is for a term of 10 years with an option to
extend the Lease for an additional 10 years. Airport Properties would like to assign the
Lease to Sibran Properties, LLC.
FINANCIAL IMPACT
None.
RESOLUTION NO. 10603
A RESOLUTION CONSENTING TO THE ASSIGNMENT OF THE CREDIT CARD SELF SERVE
FUELING OPERATION GROUND LEASE BETWEEN THE CITY OF PUEBLO, A MUNICIPAL
CORPORATION, AND AIRPORT PROPERTIES, INC., A TEXAS CORPORATION, TO SIBRAN
PROPERTIES, LLC AND AUTHORIZING THE PRESIDENT OF CITY COUNCIL TO EXECUTE
SAME
WHEREAS, Airport Properties, Inc., entered into a Credit Card Self Serve Fueling
Operation Ground Lease ( "Lease ") with the City of Pueblo for land on which to build and operate a
Credit Card Self Serve Fueling Station at the Pueblo Memorial Airport on February 25, 2002; and
WHEREAS, Airport Properties, Inc., desires to assign the Lease to Sibran Properties, LLC;
now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1.
The City of Pueblo does hereby consent to the assignment of the February 25, 2002 Credit
Card Self Serve Fueling Operation Ground Lease by Airport Properties, Inc., to Sibran Properties,
LLC, as described in, and contemplated by the Assignment of Lease, a copy of which is attached
hereto, subject to and contingent upon Sibran Properties, LLC assuming and performing all of the
obligations imposed on the Lessee under the Lease through the remaining term of the Lease from
December 27, 2005 through February 25, 2012 unless sooner terminated or extended as provided
within the Lease.
SECTION 2.
The President of City Council is hereby authorized to execute the Assignment of Lease.
INTRODUCED December 27, 2005
.. T - C W
IL
A, V
BY Michael Occhiato
Councilperson
Assignment of Lease
This assignment of lease ( "Assignment ") is made between Airport Properties, Inc., a
Texas Corporation, hereinafter called Assignor and Sibran Properties, LLC, a
Colorado Limited Liability Corporation, hereinafter called the Assignee.
Recitals
WHEREAS, a lease of Land and Facilities, hereafter referred to as the "Master Lease ",
(Exhibit A) was executed February 25 2002, between the City of Pueblo Colorado (the
"City") as the Lessor, and Assignor as Lessee, covering certain property described as
the "Leased Premises" located at the Pueblo Memorial Airport; and
WHEREAS, that Master Lease, between Lessor and Lessee at Pueblo Airport, dated
February 25` 2002, was approved by the Pueblo City Council pursuant to Resolution
No. 9536; and
WHEREAS, the Assignor now desires to assign to the Assignee all of its rights, title and
interest arising under the Master Lease and all of Assignor's Leasehold Interest there
under.
NOW THEREFORE, in consideration of the sum of Ten Dollars and other good and
valuable consideration, the receipt and sufficiency of which is hereby acknowledged,
and the agreement of the Assignee set forth below, the Assignor hereby assigns and
transfers to the Assignee and the Assignee's successors and assigns, all of Assignor's
rights, title and interest in and to the Master Lease. The Master Lease contains certain
property which is more particularly described and depicted by the metes and bounds
and plats on Exhibits B and C hereto, all of which are attached hereto and incorporated
herein by specific reference.
The Assignee accepts the assignment and, in addition expressly assumes and agrees
to perform and fulfill all of the terms, covenants, conditions, and obligations required to
be kept, performed, and fulfilled by the Assignor under the Master Lease, including the
making of all payments of rent due and flowage fees, when due and payable.
This assignment is made subject to the same terms and conditions of the Master Lease.
The City hereby consents to this assignment and Assignee. City and Assignee agree
that Assignee shall upon execution of this agreement pay ground rent and flowage fees
directly to the City based upon the terms of the Master Lease. Assignor agrees that it
shall pay all flowage fees up through the execution date of this Assignment.
Assignee agrees to indemnify Assignor and City, jointly and severally, and hereby
agrees to indemnify, defend and hold the City and Assignor, its officers directors, agents
I of 2 pages
and employees harmless from any and all costs, expenses liabilities including
reasonable attorney's fees and claims of every kind resulting from the use and
occupancy of the Leased Premises and or as a result of Assignees' breach of the tease
use, operation or negligence in the use of the Leased Premises
Assignor and Assignee understand and agree that this assignment shall become
effective December 19th. 2005.
This assignment shall be binding on and inure to the benefit of the parties to the
Assignment. their heirs, executors, administrators, successors in interest. and assigrs
Exhibits A, B and C all of which are attached hereto and incorporated herein by specific
reference.
Assignor: Airport Properties. Inc.
By .Wwc
Jack H. Cox, President
Assignee n Prop " s, LLC
By
D a4ef N . Olsen, President
6