Loading...
HomeMy WebLinkAbout14089 City Clerk’s Office Item # M-15 Background Paper for Proposed Resolution COUNCIL MEETING DATE: November 12, 2018 TO: President Christopher A. Nicoll and Members of City Council CC: Sam Azad, City Manager VIA: Brenda Armijo, Acting City Clerk FROM: Daniel C. Kogovsek, City Attorney SUBJECT: A RESOLUTION APPROVING AN AMENDMENT TO LEASE AGREEMENT BETWEEN THE CITY OF PUEBLO, A COLORADO MUNICIPAL CORPORATION AND TRINITY PLASTICS, INC., A COLORADO CORPORATION AND AUTHORIZING THE PRESIDENT OF CITY COUNCIL TO EXECUTE SAID AMENDMENT SUMMARY: Attached is a Resolution which approves and authorizes the President of City Council to sign an Amendment to Lease Agreement with Trinity Plastics, Inc, a Colorado Corporation (“Trinity”). PREVIOUS COUNCIL ACTION: On July 26, 2010, by Resolution No. 8643, City Council approved a lease agreement between the City and Trinity Packaging Corporation (“TPC”) for the property commonly known as 31841 Excellence Avenue, Pueblo, Colorado 81001 (“Lease Agreement”). BACKGROUND: The Lease Agreement was assigned with the City’s approval from TPC to Trinity, through an “Assumption of Lease Agreement” in October, 2013. The original term of the Lease Agreement was for a five-year period from July 26, 2010 through July 25, 2015. The renewal term approved by this Resolution and the attached Amendment to Lease Agreement is for the five-year period from January 26, 2015 through January 25, 2020. The lease arrangement between the City and Trinity will terminate on July 25, 2020. Trinity has no right to renew its lease with the City on or after July 25, 2020. When Trinity’s lease ends, the City can rent 31841 Excellence Avenue, Pueblo, Colorado 81001 to a new tenant or renegotiate a new lease with Trinity. FINANCIAL IMPLICATIONS: Under the Amendment to Lease Agreement approved by this Resolution, Trinity shall pay the City annual rent in the amount of $26,400. BOARD/COMMISSION RECOMMENDATION: Not applicable to this Resolution. STAKEHOLDER PROCESS: Not applicable to this Resolution. ALTERNATIVES: Trinity, as Assignee to the Lease Agreement with TPC, has the right to extend and renew the Lease until July 25, 2020. Failure of the City to approve the attached Amendment to Lease Agreement could result in litigation brought by Trinity. RECOMMENDATION: Approve the Resolution. Attachments: Proposed Resolution and proposed Amendment to Lease Agreement RESOLUTION NO. 14089 A RESOLUTION APPROVING AN AMENDMENT TO LEASE AGREEMENT BETWEEN THE CITY OF PUEBLO, A COLORADO MUNICIPAL CORPORATION AND TRINITY PLASTICS, INC., A COLORADO CORPORATION AND AUTHORIZING THE PRESIDENT OF CITY COUNCIL TO EXECUTE SAID AMENDMENT BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. The Amendment to Lease Agreement dated November 12, 2018 between the City of Pueblo, a Colorado Municipal Corporation and Trinity Plastics, Inc., a Colorado Corporation, a copy of which is attached hereto (“Amendment to Lease Agreement”), 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 Amendment to Lease Agreement 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 authorized and directed to perform any and all acts consistent with this Resolution and the attached Amendment to Lease Agreement which are necessary or appropriate to implement the transactions described therein. SECTION 3. This Resolution shall become effective immediately upon final passage. INTRODUCED November 12, 2018 BY: Ed Brown MEMBER OF CITY COUNCIL APPROVED: PRESIDENT OF CITY COUNCIL ATTESTED BY: ACTING CITY CLERK