HomeMy WebLinkAbout13521RESOLUTION NO. 13521
A RESOLUTION APPROVING A LEASE BETWEEN PUEBLO, A
MUNICIPAL CORPORATION AND THE COLORADO TRUST, A
COLORADO NONPROFIT CORPORATION FOR SPACE
LOCATED AT 317 NORTH MAIN STREET, PUEBLO,
COLORADO 81003 AND AUTHORIZING THE PRESIDENT OF
THE CITY COUNCIL TO EXECUTE SAID LEASE
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1.
The Lease between the City of Pueblo and The Colorado Trust, a Colorado nonprofit
corporation, dated September 1, 2016, 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 said Lease in the name of the City and the City Clerk is directed to affix
the seal of the City thereto and attest same.
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 Lease which are necessary or
desirable to effectuate the transactions described therein.
SECTION 3.
This Resolution shall become effective immediately upon final passage.
INTRODUCED: September 26, 2016
BY: Ed Brown
City Clerk’s Office Item # M-2
Background Paper for Proposed
Resolution
COUNCIL MEETING DATE: September 26, 2016
TO: President Stephen G. Nawrocki and Members of City Council
CC: Sam Azad, City Manager
VIA: Gina Dutcher, City Clerk
FROM: Daniel C. Kogovsek, City Attorney
SUBJECT: A RESOLUTION APPROVING A LEASE BETWEEN PUEBLO, A MUNICIPAL
CORPORATION AND THE COLORADO TRUST, A COLORADO NONPROFIT
CORPORATION FOR SPACE LOCATED AT 317 NORTH MAIN STREET,
PUEBLO, COLORADO 81003 AND AUTHORIZING THE PRESIDENT OF THE
CITY COUNCIL TO EXECUTE SAID LEASE
SUMMARY:
Attached is a Proposed Resolution approving and authorizing the President of City Council to sign
a lease between the City of Pueblo and The Colorado Trust, a Colorado nonprofit corporation (the
“Trust”) for the rental of Suite 208 located in the Pope Block Building which is owned by the City
of Pueblo.
PREVIOUS COUNCIL ACTION:
None.
BACKGROUND:
The Trust wishes to lease space in the Pope Block building located at 317 North Main Street in
Downtown Pueblo.
FINANCIAL IMPLICATIONS:
The Trust will lease Suite 208 (368 square feet) of space located on the second floor east of the
Pope Block building. The monthly rental is $400. The lease term is for one year beginning
September 1, 2016 and ending August 31, 2017.
BOARD/COMMISSION RECOMMENDATION:
Not applicable to this Resolution.
STAKEHOLDER PROCESS:
Not applicable to this Resolution.
ALTERNATIVES:
If this Resolution is not approved, the City will lose approximately $4,800 in rental income.
RECOMMENDATION:
Approve the Resolution.
Attachments:
Proposed Resolution and Lease
LEASE
This Lease is made as of this 23st day of August 2016, by and between Pueblo, a
Colorado municipal corporation ("Landlord") and The Colorado Trust, a Colorado nonprofit
corporation ("Tenant").
ARTICLE 1
BASIC DATA
Each reference in this Lease to any of the terms contained in this Article or otherwise
defined in this Agreement will be construed to incorporate the definitions or data stated under
that term, defined as follows:
1.1. Building: 317 North Main Street, Pueblo, CO 81003
1.2. Leased premises: Rentable square feet approximately 368 sq. ft. Suite 208 Pope
Block Building 2nd Floor East. 317 N. Main Pueblo, Co. 81003
1.3. Term: One Year
1.4. Commencement date: September 1, 2016
1.5. Base rent: Rate as defined in ARTICLE 4: RENT AND ADDITIONAL
CHARGES. Includes all utilities, and janitorial services
1.6. Renewal option: Tenant only upon written notice 90 days prior to termination date
1.7. Tenant improvement allowance: None
1.8. Agency disclosure and commission: Barclay Clark is acting as Transaction Broker,
representative.
Landlord will pay Tenant's Agent a commission.
1.9. Landlord address: Attn: City Manager
1. City Hall Place, 2nd Floor
Pueblo, CO 81003
Phone: (719) 553-2655
1.10. Landlord's propertygement representative: Barclay Clark
Re/Max
511 West 29t" Street
Pueblo, CO 81008
Phone: (719) 671-9232
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1.11. Tenant address:
Debra L. DeMuth
Vice President & CFO
c/o The Colorado Trust
1600 Sherman St.
Denver, Co. 80203
1.12 Rents
Rents are due on the first 1St of each month and late on the 5th day of each month. There is
a $25.00 per day late fee for each day rents are not received after the 5th day of each month.
Amount due upon occupancy $800.00 broken out as follows:
$400.00 Refundable Security Deposit
$400.00 First month's rents
All Rents shall be paid to; City of Pueblo Pope Block Management
317 N. Main
Pueblo, Co. 81003
Attn: Barclay Clark (Property Manager)
ARTICLE 2
LEASE OF PREMISES
2.1. Leased Premises. In consideration of the mutual covenants and agreements herein
contained, Landlord hereby leases to Tenant the premises rentable square feet ("RSF") located in
the Building (the "Leased Premises") together with all appurtenances, located as depicted in
ARTICLE 12. Leased Premises shall be segregated with secured access for Tenant at no
additional cost to Tenant with Tenant approval prior to Commencement Date. Notwithstanding
anything to the contrary contained in this Agreement, neither the size nor location of the Leased
Premises may be modified during the Term without Tenant's prior written consent.
2.2. The first right of refusal for un-leased space in the building has been waived .
2.3 Common Areas. Tenant shall have, as appurtenant to the Leased Premises, the non-
exclusive right to use, and permit its invitees to use in common with other tenants of the
Building, public lobbies, hallways, stairways, elevators, walkways necessary for access to
Leased Premises, loading areas, pedestrian sidewalks and other areas or facilities which are in
the Building which are public in nature.
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2.4 Repair and Maintenance. Landlord shall repair and maintain the Building and the
Building common areas in good operating condition and repair.
2.5 Parking. Tenant shall procure parking in a separate agreement.
2.6 Utilities and Services. Landlord shall provide at no additional cost to Tenant:
electricity for normal office usage, HVAC to maintain the Premises in normal office
temperatures for typical office comfort, typical janitorial services five (5) days per week and
(excluding holidays).
2.7 FF&E. Landlord shall provide at no additional cost to Tenant desks in the Premises
for Tenant's office as reasonably required by Tenant.
ARTICLE 3
TERM
3.1. Commencement Date; Term. This Lease shall have one (1) year term ("Term"). The
Lease Term begins (the "Commencement Date") on September 1th, 2016 and terminates on
August 31' 2017 (the "Termination Date").
3.2. Options. Provided Tenant is in full compliance with terms and conditions of this
Lease, Tenant may extend the Term for an Extended Term as follows. Tenant may exercise two
(2), one (1) year renewal options with 90 days prior notice to the Landlord. The rent and other
terms and conditions of this Lease will increase by 5% per year in each renewal year.
3.3. Termination Without Cause Option: Tenant shall have the continuing option to
cancel this Lease, as it pertains to all, or any portion of the Leased Premises, for any reason
whatsoever, by providing Landlord sixty (60) days prior written notice which shall specify the
termination date and the portion of the Leased Premises being vacated.
ARTICLE 4
RENT AND ADDITIONAL CHARGES
4.1. Tenant's rent for the Term of this Lease (One Year) $4800.00 (Four Thousand
Eight Hundred and no/100 Dollars) shall be payable in monthly installments of$400.00(Four
Hundred Dollars and no/100), the rent is all inclusive in addition to taxes and fees that are
included within Term of this lease.
ARTICLE 5
USE
5.1. Use. Tenant may use the Leased Premises for general administrative office purposes.
Any change of use by the Tenant shall require the prior written consent of the Landlord, which
consent shall not be unreasonably withheld, conditioned or delayed. Tenant shall inform
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Landlord, thirty(30) days in advance, of all use of the Building's computer fiber for data
transmission. Landlord will not withhold any access if data transmissions are in agreement with
City of Pueblo agreements with service provider(s).
5.2. Compliance with Laws. During the Term of this Lease, Tenant shall comply with all
applicable laws, rules, regulations and ordinances of all federal, state, county and municipal
authorities having jurisdiction over the Leased Premises or the Building regarding Tenant's use
of the Premises, provided that Tenant shall not be required to make modifications or alterations
to the Building.
ARTICLE 6
ALTERATIONS AND SIGNS
6.1. Tenant's Alterations. Alterations, installations, improvements, additions or other
physical changes to the Leases Premises shall not be made by the Tenant without the prior
written consent of the Landlord, which consent shall not be unreasonably withheld, conditioned
or delayed.
6.2 Signage. The size, location, color and design of any sign placed by the Tenant on the
Leased Premises or Building, shall be subject to the Landlord's prior written approval, not to be
unreasonably withheld.
6.3 Liens. Tenant must keep the Leased Premises and this Lease free from any
mechanic's, material man's, or similar liens or encumbrances, and any claims therefore for labor
or materials furnished Tenant. If Tenant fails to do so, Landlord may pay the amount or take
such other action as Landlord deems necessary to remove such claim, lien or encumbrance,
without being responsible for investigating the validity thereof. The amount so paid and costs
incurred by the Landlord will be deemed additional rent under this Lease payable upon demand,
without limitation as to other remedies available to Landlord.
6.4. Surrender. On the Termination Date of this Lease, Tenant shall quit and surrender
the Leased Premises in substantially the same condition as they were on the Commencement
Date, reasonable wear and tear excepted. Tenant may remove, but shall not be required to
remove, any fixtures, alterations or improvements made to the Leased Premises, provided that
Tenant repairs any damage caused by such removal. Any items of personal property not
removed by Tenant on the Termination Date of this Lease may be retained or disposed of by
Landlord, at Tenant's expense.
ARTICLE 7
INDEMNIFICATION AND INSURANCE
7.1. Landlord's Indemnity. Landlord shall defend, indemnify and save harmless Tenant
and its agents and employees against all costs (including, without limitation, reasonable
attorneys' fees), damages or claims whether for personal injury, bodily injury or property
damage, during the Term of this Lease, occurring in the Building, if caused by an act or omission
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by Landlord or its agents or employees, arising out of Landlord's operations or Landlord's use or
occupancy of the Building.
7.2 Tenant's Indemnity. Tenant shall defend, indemnify and save harmless Landlord and
its agents and employees against all costs (including, without limitation, reasonable attorneys'
fees), damages or claims whether for personal injury, bodily injury or property damage, during
the Term of this Lease, occurring in the Building, if caused by an act or omission by Tenant or
its agents or employees, arising out of Tenant's operations or Tenant's use or occupancy of the
Building.
7.3 Landlord's Insurance.
7.3.1. Liability Insurance. During the Term of this Lease, Landlord must maintain
insurance covering Landlord's liability for ownership, maintenance and use of the Building,
including the Common Areas. Such insurance must provide limits of not less than $1 million
with respect to injury to any one person, $1 million with respect to any one occurrence and
$500,000 with respect to property damage arising out of any one occurrence.
7.3.2 Property Insurance. Landlord must maintain "all-risk"property insurance covering
the Building against loss or damage resulting from fire or other insurable loss.
7.4. Tenant's Insurance.
7.4.1. Liability Insurance. During the Term, Tenant must maintain insurance covering
Tenant's liability for occupation and use of the Leased Premises and the Building, including the
Common Areas. Such insurance must provide limits of not less than $1 million with respect to
injury to any one person, $1 million with respect to any one occurrence and $250,000 with
respect to property damage arising out of any one occurrence.
7.4.2. Worker's Compensation Insurance. Tenant shall maintain and keep in force an all
employees compensation insurance policy as required under the laws of the State of Colorado.
7.5. Insurance Requirements. All insurance required to be carried by the parties
hereunder shall be issued by responsible insurance companies qualified to do business in the
State of Colorado. The parties further agree to provide each other with copies of certificates of
insurance for all policies required as well as annual proof of payment of premiums.
7.6 Waiver of Subrogation. The parties to this Lease hereby release each other and their
respective officers, agents, managers, directors, and employees from any and all claims and
demands for loss, damages, expense or injury to any person or the Building or to personal
property or improvements which are caused by or result from any risk insured against under
insurance policies carried or required to be carried by the parties and in force at the time of any
such loss, to the extent such loss is covered by such parties' policies. The parties shall each
obtain from their respective insurers waivers of all rights of subrogation, which the insurer of one
party might have against the other party and Landlord and Tenant shall each indemnify the other
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against any loss or expense, including reasonable attorneys' fees,resulting from the failure to
obtain such waivers of subrogation.
ARTICLE 8
ASSIGNMENT
8.1. Internal Assignments. Notwithstanding anything in this Lease to the contrary,
Tenant has the right to assign this Lease or sublet the Leased Premises, without Landlord's
consent, to a parent, subsidiary, or affiliate of Tenant, to a company that has been merged or
consolidated with Tenant, or to a company acquiring all or substantially all of Tenant's physical
assets at the Leased Premises, provided Tenant(or the resulting entity of any merger or
consolidation) remains fully liable hereunder.
8.2. Outside Assignment Requirements. It shall be necessary for Tenant to obtain
Landlord's prior, written consent to any other proposed assignment of this Lease or subletting of
the Leased Premises. However, Landlord's consent must not be unreasonably or unduly
withheld, conditioned, or delayed, provided, however, that Landlord may withhold consent
thereto if in the exercise of its sole judgment it determines that:
8.2.1. Financial Condition. The financial condition of the proposed assignee or subtenant
is not consistent with the extent of the obligations undertaken by the proposed assignment or
sublease; or
8.2.2. Proposed Use. The proposed use of the Leased Premises is not appropriate for the
Building or in keeping with the character of the existing tenancies of the Building.
ARTICLE 9
CASUALTY AND RESTORATION
9.1. Restoration. Upon any damage due to fire or other casualty, if such casualty results
in damage to more than 5% of the gross leasable area of the Building, Landlord may, in its sole
discretion, upon thirty(30) days written notice to Tenant after such casualty, terminate this
Lease. Landlord may also, in its sole discretion, undertake restoration of the Building and
complete such restoration,with due diligence, after such casualty. If there is damage to the
Premises or Building such that Tenant will not be able to reasonably use the Premises for ninety
(90) days, then Tenant shall have the right to terminate this Lease by delivery of written notice to
Landlord.
9.2. Equitable Adjustment. Upon any damage due to fire or other casualty, whether or
not Landlord decides to undertake restoration of the Building, the parties agree that the Tenant's
obligation to pay a pro rata portion of the Operating Expenses of the Building shall be equitably
abated and apportioned from the date of such casualty until such repairs are completed or until
Tenant vacates the Leased Premises.
ARTICLE 10
DEFAULT AND REMEDIES
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10.1. Tenant's Default. If Tenant (a) fails to make its monthly payment of Tenant's Rent
for more than 10 days after Tenant receives notice of such failure from Landlord; or (b) fails to
perform or observe any other agreement or condition contained in this Lease, and such failure is
not corrected within thirty (30) days after Tenant receives notice from Landlord of such failure,
then, in addition to all other remedies available at law or in equity, Landlord has the right to
terminate this Lease and recover possession of the Leased Premises in the manner prescribed by
law.
10.2. Landlord's Default. If Landlord fails to perform or observe any agreement or
condition contained herein, and such failure is not corrected within thirty (30) days after
Landlord receives notice from Tenant of such failure, then, in addition to all other remedies
available at law or in equity, Tenant has the right to terminate this Lease.
10.3. Disputes. In the event of an unresolved dispute between Landlord and Tenant
regarding the performance by either party of an obligation or condition of this Lease, as a
condition precedent to the filing of litigation, authorized representatives of Landlord and Tenant
will use good faith and commercially reasonable efforts to resolve such disputes.
ARTICLE 11
GENERAL PROVISIONS
11.1. Notices. Notices, consents, and demands required or permitted to be given
hereunder must be in writing and be effective when received or refused, whether by hand
delivery, nationally recognized overnight courier(with evidence of receipt or refusal), or U.S.
Mail (return receipt requested), to the parties' respective Address stated in Article 1 of this
Lease, or to such other address as the parties designate by written notice to each other, and each
party may identify additional parties to receive copies of same.
11.2. Holding Over. Should Tenant hold over in possession of the Leased Premises after
the expiration of the Term, as extended, such holding over shall not be deemed to extend the
Term or renew this Lease, but this Lease will continue as a tenancy from month to month upon
the terms and conditions stated herein. Note that there will a 5% increase in rents each
successive year.
11.3. Waiver/Remedies. The failure of Landlord or Tenant to insist upon strict
performance by the other of any of the provisions of this Lease or to exercise any option herein
conferred will not be deemed as a waiver or relinquishment for the future of any such provision
or option. Except as expressly provided otherwise herein, all rights and remedies provided for
herein or otherwise existing at law or in equity are cumulative, and the exercise of one or more
rights or remedies by either party shall not preclude or waive its right to the exercise of any or all
of the others.
11.4. Partial Invalidity. If any provision of this Lease or the application thereof to any
person or circumstance is, at any time or to any extent, invalid or unenforceable, the remainder
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of this Lease will not be affected thereby, and each such provision will be valid and will be
enforced to the fullest extent permitted by law.
11.5. Attorneys' Fees. In the case of any litigation among the parties under this
Agreement, the prevailing party will be entitled to reimbursement for its reasonable costs,
including reasonable attorneys' fees, incurred in any such dispute.
11.6. Entire Agreement. This Lease contains the entire and exclusive agreement between
the parties relating to the Leased Premises, and may not be modified except by written
instrument signed by the party to be bound thereby.
11.7. Venue and Waiver of Trial by Jury. In the event of any litigation arising under this
Agreement, exclusive venue for any such litigation shall be Pueblo County, Colorado. All such
litigation shall be filed in the District Court and each party submits to the jurisdiction of such
District Court. Landlord and Tenant hereby waive trial by jury in any action, proceeding, or
counterclaim brought by either against the other, upon any matters whatsoever arising out of or
in any way connected with this Lease, Tenant's use or occupancy of the Premises, and/or any
claim of injury or damage.
11.8. Relationship of the Parties. Neither Party shall be, or hold itself out as, agent of
the other or as joint ventures or partners under this Agreement.
11.9. Drafting of Agreement. Each Party acknowledges that this Agreement was fully
negotiated by the Parties and,therefore,no provision of this Agreement shall be interpreted against
any Party because such Party or its legal representative drafted such provision.
11.10. No Third Party Beneficiaries. The provisions of this Agreement are for the
exclusive benefit of the Parties hereto and their successors and permitted assigns, and no third
party shall be a beneficiary, or have any rights by virtue of this Agreement.
11.11. Counterparts. This Agreement may be executed in any number of counterparts, and
each such counterpart shall be deemed for all purposes to be an original, and all such counterparts
shall together constitute but one and the same original.
11.12. Survival. Whether or not specifically noted within any section or provision of this
Lease, any provision of this Lease which must survive termination of this Lease in order to be
effective will so survive such termination.
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IN WITNESS WHEREOF, this Lease is executed and delivered as of the date first above
written.
TENANT:
Colorado Trust
/ � �� z �
Signature Ned Calonge
President& CEO
The Colorado Trust
August 30, 2016
Date
LANDLORD:
CITY OF ' . :+_
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k ` 'Stee en-- President of City Council
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Approved as to Form
Daniel C. Kogovsek, City Attorn '
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