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HomeMy WebLinkAbout11604RESOLUTION NO. 11604 A RESOLUTION APPROVING CONSENT TO ASSIGNMENT AND LEASE MODIFICATION BETWEEN THE CITY OF PUEBLO AND IN TRIPLICATE, LLC RELATING TO THE WALKINGSTICK MUNICIPAL GOLF COURSE RESTAURANT AND LOUNGE MANAGEMENT AGREEMENT, AND AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL TO EXECUTE SAME BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1 The Consent to Assignment and Lease Modification (ALease Modification @) dated May 11, 2009 between the City of Pueblo and In Triplicate, LLC relating to the Walkingstick Municipal Golf Course Restaurant and Lounge Management Agreement, a copy of which is attached hereto, having been approved as to form by the City Attorney, is hereby approved. The President of the City Council is authorized to execute and deliver the Lease Modification in the name of the City and the City Clerk is directed to affix the seal of the City thereto. SECTION 2 This Resolution shall become effective upon final passage and approval. INTRODUCED: Mav 11. 2009 A77TSTDD SY: CITY CLERK BY: Judy Weaver } Councilperson APPR D' } �- PRESIDENTaf Cfty Council ED Background Paper for Proposed RESOLUTION AGENDA ITEM # 2 DATE: May 11, 2009 DEPARTMENT: Law Department TITLE A RESOLUTION APPROVING CONSENT TO ASSIGNMENT AND LEASE MODIFICATION BETWEEN THE CITY OF PUEBLO AND IN TRIPLICATE, LLC RELATING TO THE WALKINGSTICK MUNICIPAL GOLF COURSE RESTAURANT AND LOUNGE MANAGEMENT AGREEMENT, AND AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL TO EXECUTE SAME ISSUE Should City Council approve assignment of and amendments to the Walkingstick Municipal Golf Course Restaurant and Lounge Management Agreement? Approve the assignment and amendments. BACKGROUND Zaremba Enterprise, Inc. intends to assign its interest in the Walkingstick Municipal Golf Course Restaurant and Lounge Management Agreement ( "Management Agreement') to In Triplicate, LLC ( "Manager "). Manager will accept the assignment and agree to perform all obligations under the Management Agreement. The term of the Management Agreement will be 2 years from May 1, 2009 to April 30, 2011, with the option to renew for 3 years from May 1, 2011 to April 30, 2014. Rent will be $2,000.00 each month. George A. Andrews, III will guaranty the performance of In Triplicate, LLC. FINANCIAL IMPACT Current rent is $2,000 per month and will not change under the Lease Modification. .l" CONSENT TO ASSIGNMENT AND LEASE MODIFICATION THIS CONSENT TO ASSIGNMENT AND LEASE MODIFICATION ( "Lease Modifica- tion") is entered into as of May 11, 2009 between City of Pueblo, a municipal corporation ( "City ") and In Triplicate, LLC, a Colorado limited liability company ( "Manager "). WHEREAS, Zaremba Enterprises, Inc. assigned and transferred all its right, title and interest in and to the Walkingstick Municipal Golf Course Restaurant and Lounge Management Agreement dated November 13, 2000 ( "Walkingstick Restaurant Agreement ") to Manager effective May 1, 2009 ( "Assignment "), and WHEREAS, Manager and City are desirous of modifying the Walkingstick Restaurant Agreement. NOW, THEREFORE, in consideration of the foregoing and mutual promises herein contained City and Manager agree as follows: 1. City consents to the Assignment. Manager accepts the Assignment and agrees to be bound thereby and to perform all covenants and provisions on the part of the Manager to be performed under the Walkingstick Restaurant Agreement as modified and amended by the provisions of this Lease Modification. 2. The Walkingstick Restaurant Agreement is hereby modified and amended as follows: (a) The term of the Walkingstick Restaurant Agreement is for a period of two (2) years commencing May 1, 2009 and ending April 30, 2011, unless sooner terminated as provided in the Walkingstick Restaurant Agreement. If not in default under the Walkingstick Restaurant Agreement, Manager shall have the option to extend the term of the Walkingstick Restaurant Agreement for an additional period of three (3) years, from May 1, 2011 to April 30, 2014 upon the same terms and conditions, except the option to extend the term. In order to exercise its option to extend, Manager shall deliver to City written notice of its exercise of the option on or before January 10, 2011. If Manager fails to timely deliver to City its written notice to exercise the option, the option shall expire and the term of the Walkingstick Restaurant Agreement shall end on April 30, 2011. (b) Paragraphs 3(u) and 3(v) of the Walkingstick Restaurant Agreement are deleted in their entirety. (c) Paragraph 5 of the Walkingstick Restaurant Agreement is amended to read as follows: For the use of the Leased Facilities, Manager shall pay to the City monthly rent in the amount of $2,000.00 for each calendar month during the term hereof. Monthly rent shall be paid to the City Department of Finance, in advance, without notice, setoff, or deduction, on or before the 1 st day of each calendar month, starting with the month of May 2009. 3. The Walkingstick Restaurant Agreement as modified and amended by the provisions of this Lease Modification shall remain in full force and effect, binding upon and inuring to the benefit of City and Manager and their respective successors and approved assigns. Executed at Pueblo, Colorado as of the day and year first above written. LLC '•'� �/� [SEAL] CITY OF PUEBLO By President of the City Counc'. _ L S EAL] Attest: - - Cityih erk -- - Attest: Title: GUARANTY In consideration of the City of Pueblo approving and executing the foregoing Consent To Assignment And Lease Modification, the undersigned, George A. Andrews, III, does hereby personally guarantee the performance of the Consent to Assignment and Lease Modification and the Walkingstick Municipal Golf Course Restaurant and Lounge Agreement dated November 13, 2000 (collectively the "Agreements ") by In Triplicate, LLC. In the event of default by In Triplicate, LLC under any provision of said Agreements and written notice thereof is given to George A. Andrews, III, George A. Andrews, III will timely cure such default and perform all the covenants and provisions of the Agreements to be performed by In Triplicate, LLC thereunder. Signed as of May 11, 2009. Georg A. Andrews, II 2