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HomeMy WebLinkAbout13354RESOLUTION NO. 13354 A RESOLUTION CONSENTING TO THE ASSIGNMENT OF THE GROUND LEASE AND OPERATING AGREEMENT DATED JUNE 7, 2005 BETWEEN THE CITY OF PUEBLO AND TRAVELAIRE SERVICE, INC., FOR CERTAIN REAL PROPERTY AND RIGHTS TO USE RAMP SPACE AND FUEL TANKS AT THE PUEBLO MEMORIAL AIRPORT TO PDC ACQUISITION CORP. AND AUTHORIZING THE PRESIDENT OF CITY COUNCIL TO EXECUTE SAME 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 and the City Clerk is to attest same and affix the seal of the City thereto. SECTION 2. The officers and staff of the City are directed and authorized to perform any and all acts consistent with the intent of this Resolution and the attached Assignment to effectuate the transactions described herein. SECTION 3. This Resolution shall become effective immediately upon passage and approval. INTRODUCED: December 28, 2015 BY: Dennis Flores City Clerk’s Office Item # M-6 Background Paper for Proposed Resolution COUNCIL MEETING DATE: December 28, 2015 TO: President Steve Nawrocki and Members of City Council CC: Sam Azad, City Manager VIA: Gina Dutcher, City Clerk FROM: John Vigil – Aviation Department SUBJECT: A RESOLUTION CONSENTING TO THE ASSIGNMENT OF THE GROUND LEASE AND OPERATING AGREEMENT DATED JUNE 7, 2005 BETWEEN THE CITY OF PUEBLO AND TRAVELAIRE SERVICE, INC., FOR CERTAIN REAL PROPERTY AND RIGHTS TO USE RAMP SPACE AND FUEL TANKS AT THE PUEBLO MEMORIAL AIRPORT TO PDC ACQUISITION CORP. AND AUTHORIZING THE PRESIDENT OF CITY COUNCIL TO EXECUTE SAME SUMMARY: This Resolution consents to the Assignment of a Ground Lease and Operating Agreement at the Pueblo Memorial Airport to PDC Acquisition Corp. PREVIOUS COUNCIL ACTION: The City entered into a Ground Lease and Operating Agreement with Travelaire Services, Inc. on June 7, 2005. On April 24, 2006, the City agreed to an assignment of the lease to Rocky Mountain FBO, LLC. BACKGROUND The original lease was for 20 years with a 10-year option to extend the lease. The first term of the lease expires January 31, 2027. Rocky Mountain FBO is selling their business to PDC Acquisition Corp. and they have asked the City to consent to the reassignment of the Lease to PDC. FINANCIAL IMPLICATIONS: There will be no financial impact as PDC Acquisition Corp. will take over the lease payments. BOARD/COMMISSION RECOMMENDATION: Not Applicable for this Resolution. STAKEHOLDER PROCESS: Not applicable. ALTERNATIVES: Section 17, Paragraph A of the Ground Lease and Operating Agreement reads as follows: “Lessee shall not assign this Lease or any interest therein nor sublet the leased premises or any portions thereof without the prior written consent of Lessor, which consent shall not be unreasonably or arbitrarily withheld, delayed, or denied. Any assignment or subletting without the prior written consent of Lessor shall be void.” If the assignment is not approved and PDC Acquisition Corp. purchases Rocky Mountain FBO, a new lease will need to be negotiated and brought to City Council for approval. RECOMMENDATION The Aviation Department recommends approval of this Resolution. Attachments: Assignment CONSENT TO ASSIGNMENT The City of Pueblo as Lessor under the Ground Lease and Operating Agreement, in reliance upon the Recitals and provisions of the foregoing Assignment, consents to the foregoing Assignment of the Ground Lease and Operating Agreement by Assignor to Assignee on the express condition that no further assignment of the Ground Lease and Operating Agreement or any part thereof shall be made without the prior written consent of the City of Pueblo. Executed in Pueblo, Colorado the 2 gig day of D �Z.r 2 , 2015. CITY OF PUEBLO, A MUNICIPAL CORPORATION e111 I IF dlLepen G.Nawrocki President of City Council ATTEST: City erk APPROVED AS TO FORM: Daniel C. Kogovsek, City Attor ey