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