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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