Loading...
HomeMy WebLinkAbout14116 RESOLUTION NO. 14116 A RESOLUTION APPROVING AND RATIFYING A LEASE BETWEEN THE CITY OF PUEBLO, A COLORADO MUNICIPAL CORPORATION AND 3 JFK LLC, A COLORADO LIMITED LIABILITY COMPANY FOR THE RENTAL OF THE BUILDING LOCATED AT 901 W. 9TH STREET, PUEBLO, COLORADO 81003 FOR USE AS A TEMPORARY OVERNIGHT WARMING SHELTER AND APPROVING AND RATIFYING THE SIGNATURE OF THE VICE PRESIDENT OF THE CITY COUNCIL TO SAID LEASE BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. The Lease dated effective December 1, 2018 between the City of Pueblo, a Colorado Municipal Corporation and 3 JFK LLC, a Colorado Limited Liability Company, a copy of which attached hereto, having been approved as to form by the City Attorney is hereby approved and ratified. The signature of the Vice President of the City Council to said Lease is hereby approved and ratified and the Acting 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 Lease which are necessary or desirable to implement the transactions described therein. SECTION 3. This Resolution shall become effective immediately upon final passage. INTRODUCED December 10, 2018 BY: Ed Brown MEMBER OF CITY COUNCIL APPROVED: PRESIDENT OF CITY COUNCIL ATTESTED BY: ACTING DEPUTY CITY CLERK City Clerk’s Office Item # M-12 Background Paper for Proposed Resolution COUNCIL MEETING DATE: December 10, 2018 TO: President Christopher A. Nicoll and Members of City Council VIA: Brenda Armijo, Acting City Clerk FROM: Sam Azad, City Manager SUBJECT: A RESOLUTION APPROVING AND RATIFYING A LEASE BETWEEN THE CITY OF PUEBLO, A COLORADO MUNICIPAL CORPORATION AND 3 JFK LLC, A COLORADO LIMITED LIABILITY COMPANY FOR THE RENTAL OF THE BUILDING LOCATED AT 901 W. 9TH STREET, PUEBLO, COLORADO 81003 FOR USE AS A TEMPORARY OVERNIGHT WARMING SHELTER AND APPROVING AND RATIFYING THE SIGNATURE OF THE VICE PRESIDENT OF THE CITY COUNCIL TO SAID LEASE SUMMARY: Attached is a proposed Resolution which approves and ratifies the lease of the building located th at 901 W. 9 Street, Pueblo, Colorado 81003 (“Overnight Warming Shelter”) for use as a temporary overnight warming shelter for the City’s homeless population. PREVIOUS COUNCIL ACTION: On November 26, 2018, by Ordinance No. 9384, the City Council declared a temporary housing and shelter emergency for the homeless residents of the City of Pueblo. BACKGROUND: An overnight warming place for homeless adults in the City of Pueblo does not currently exist and extreme cold night temperatures pose significant dangers to the health of the City’s homeless persons. Council Member Mark Aliff has been working to address this emergency and it is his th recommendation that the building located at 901 W. 9 Street be used as an emergency overnight warming shelter on a temporary basis. The Overnight Warming Shelter is currently owned by 3 JFK LLC, a Colorado limited liability company (“Owner”). The Owner has agreed to enter into a short-term lease with the City of Pueblo for use of the building as an Overnight Warming Shelter. This Resolution approves and ratifies the short-term lease with the Owner. Due to the current warming shelter emergency, City Council Vice President Ed Brown executed the subject Lease effective December 1, 2018. FINANCIAL IMPLICATIONS: The lease commences on December 1, 2018 and ends on April 30, 2019 and the City agrees to pay rent in the amount of $6,000.00 per month for a total of $30,000.00. City Council has previously appropriated $250,000 from the City’s 2018 budget to address the immediate need for a temporary warming shelter for the City’s homeless population. BOARD/COMMISSION RECOMMENDATION: Not applicable to this Resolution. STAKEHOLDER PROCESS: Council Member Aliff has met with local governmental entities and non-profit organizations to address this housing and shelter emergency for the City’s homeless residents. ALTERNATIVES: If this Resolution is not approved, homeless adults residing in the City will be forced to endure below freezing temperatures when they are outdoors due to the lack of an overnight warming shelter. RECOMMENDATION: Approve the Resolution. Attachments: Proposed Resolution and proposed Lease LEASE THIS LEASE (herein"Lease") is entered into with an effective date of December 1, 2018 between 3 JFK LLC, a Colorado limited liability company (herein "Landlord"), and the City of Pueblo, Colorado, a Colorado municipal corporation(herein "Tenant"). 1. Premises. Landlord leases to Tenant and Tenant leases from Landlord, subject to and upon the terms and provisions of this Lease, the building and grounds described as follows: Lots 11 through 16, inclusive, Block 14, Thatcher and Thomas addition, County of Pueblo, State of Colorado also known as 901 W. 9th Street, Pueblo, CO 81003 (herein "Leased Premises"). Landlord shall not be responsible for any defect in the Leased Premises or obligated to make any repairs, alterations, or improvements or additions to the Leased Premises. Landlord reserves the right from time to time to make changes, additions, and modifications in and to the Leased Premises provided the size and location of the Leased Premises shall not be changed without Tenant's prior written consent. The taking of possession of the Leased Premises by Tenant shall be conclusive evidence that Tenant accepts the Leased Premises "as is" and that the Leased Premises are in good and satisfactory condition at the time such possession was taken. 2. Use. The use and occupation of the Leased Premises by the Tenant is limited and restricted to activities in furtherance of Tenant's programs and functions, including use as an overnight warming shelter for the Tenant's homeless population. Tenant will hire security personnel to be present at the Premises at all times the warming shelter is in operation. Tenant shall use the Leased Premises in a careful, safe and proper manner. Tenant shall not use or allow the Leased Premises to be used for any unlawful purpose. Tenant shall not cause, maintain or permit any nuisance or waste in, on, or about the Leased Premises. 3. Rent. Tenant agrees to pay to Landlord, without any right of offset or deduction whatsoever, monthly rent of Six Thousand Dollars ($6,000.00), in advance without notice or demand,on or before the 1st day of each month during said term at such address as maybe specified from time to time in writing by Landlord. All other sums and charges required to be paid to Landlord by Tenant under this Lease shall be deemed to be rent and shall be payable in the manner provided and recoverable as rent, and Landlord shall have all rights specified in this Lease against Tenant for default in payment thereof as in the case of arrears of rent. 4. Term. The Lease Term shall commence on December 1,2018 and shall terminate on April 30, 2019 (herein"Term"). 1 • 5. Utilities and Taxes. Tenant shall pay the entire cost of telephone services provided to the Leased Premises. Tenant shall transfer all utilities into Tenant's name and shall pay all utility costs attributable to Tenant's use and occupancy of the Leased Premises. Tenant shall pay to Landlord, $827.00 per month during the term of the Lease for the payment of real property taxes. 6. Repairs. It shall be the obligation of the Tenant to keep and maintain the Leased Premises and the surrounding public space, including all sidewalks adjacent to the Leased Premises, in good condition and repair and in good clean and safe condition at all times with respect to any use by Tenant of the Leased Premises and public space. Tenant shall not cause, maintain or permit any damage, nuisance or waste in or about the Leased Premises, including but not limited to landscaping, curb, gutter and sidewalk along the frontage of the Leased Premises and surrounding grounds. Tenant shall, at its own expense,make all necessary repairs,which are the result of acts or negligence of Tenant, its agents, employees, customers, licensees, or invitees, or the particular nature of Tenant's use of the Leased Premises, to the following: plumbing, heating and air conditioning equipment and systems, theelectrical equipment and system, and the sewer and waterline system and connections in and to the Leased Premises. Tenant shall give to the Landlord prompt written notice of any accident to or damages in said systems that may come to Tenant's notice. 7. Quiet Enjoyment. Landlord warrants and represents itself to be the owner of the Leased Premises. Tenant shall, and may peacefully have, hold and enjoy the Leased Premises, subject to the other terms hereof,provided that Tenant pays the rental herein recited and performs all of Tenant's covenants and agreements herein contained. In the event of any dispute regarding Landlord's ownership, upon request from and at no cost to Tenant, Landlord shall immediately, furnish proof thereof by delivering to Tenant an "Ownership and Encumbrance Letter" issued by a properly qualified title insurance company. 8. Alterations. Tenant shall not make any additions, alterations or improvements in or to the Leased Premises ("Alterations") without Landlord's written consent. The Landlord will review, within 30 calendar days of notification, any permanent physical changes to the Leased Premises initiated by the Tenant. All planned improvements initiated by the Landlord will be done in consultation with the Tenant to ensure that the work does not interrupt operations and is appropriate to meet Tenant's programming goals and objectives. During the term of this Lease, Tenant will have the right to veto any work proposed by Landlord that does not meet Tenant's programming goals. Tenant shall not permit or allow any lien to be filed or recorded against the Leased Premises or Landlord's interest therein and Tenant shall fully cooperate with Landlord in obtaining the protection afforded Landlord under Section 38-22-105, C.R.S. All additions, alterations and improvements made in or to the Leased Premises by either Landlord or Tenant, including any attached fixtures and equipment installed by Tenant, shall, at the option of the Landlord, become the property of Landlord and be surrendered with the Leased Premises at the termination of this 2 Lease or be removed by Tenant at its expense and the Leased Premises restored to its original condition. Subject to the provisions of this paragraph, Tenant may remove all other fixtures and equipment purchased and installed by Tenant,provided Tenant repairs any damage caused by such removal. The failure of Tenant to remove its fixtures or any of its property at the termination of this Lease shall be deemed abandonment of such property at the option of Landlord. As of the commencement of this Lease,with Landlord's approval,Tenant has or will make the following improvements that will remain on the premises and become the property of the Landlord: (a) Replace exterior doors (b) Install a handicap ramp (c) Install a hand rail (e) Install sheet rock on wooden walls (f) Place gravel in front of the loading dock 9. Right of Entry. Landlord reserves and shall at all reasonable times have the right to enter the Leased Premises to inspect the same,to supply any service to be provided by Landlord to Tenant hereunder. For each of the aforesaid purposes,Landlord shall at all times have and retain a key with which to unlock all of the doors and gates in, upon or about any portion of the Leased Premises, and Landlord shall have the right to use any and all means which Landlord may deem necessary or proper to open such doors or gates in an emergency in order to obtain entry. Any entry to the Leased Premises shall not under any circumstances be construed or deemed to be a forcible or unlawful entry into, or a detainer of, the Leased Premises, or an eviction, of Tenant. Tenant shall permit Landlord(or its designees)to enter the Leased Premises to erect,use,maintain, replace and repair,pipes, cables,conduits,plumbing,vents and telephone, electric and other wires or other items,in,to and through the Leased Premises, as and to the extent that Landlord may now or hereafter deem to be necessary or appropriate for the proper operation and maintenance of the Leased Premises. All such work shall be done, so far as practicable, in such manner as to minimize interference with Tenant's use of the Leased Premises. 10. Waiver. Landlord shall not be liable to Tenant or to Tenant's agents, employees, customers, licensees, or invitees, and Tenant hereby waives all claims against Landlord, for any injury or damage, including personal injury, to any person or property in or about the Leased Premises including the landscaping, curb, gutter and sidewalk along the frontage of the Leased Premises and surrounding grounds by or from any cause whatsoever,including,without limitation, the following: (a)those caused by snow,ice or water or sewer leakage or back-up of any character from the Leased Premises; or (b) those. caused by gas, fire, oil, electricity or any cause whatsoever in, on or about the Leased Premises. 11. (a) Liability Insurance. Tenant shall, at Tenant's expense,maintain during the term of this Lease a policy or policies of comprehensive general liability insurance with the premiums thereon fully paid on or before due date, issued by and binding upon an insurance company approved by Landlord, such insurance to afford minimum protection of not less than $1,000,000.00 single limit bodily injury for any number of persons injured or killed in one 3 occurrence and $250,000.00 property damage. Any such policy shall cover both Tenant and Landlord. Tenant shall at Landlord's request furnish Landlord with copies of all insurance to be maintained by Tenant and with evidence of payment of the premiums thereon. All such policies shall contain a clause or endorsement to the effect that they may not be terminated or materially amended during the term of this Lease except after 30 days'written notice thereof to Landlord. (b) Self-Insurance. Because Tenant is a governmental entity,Tenant may provide the insurance referred to in subparagraph (a) of this paragraph 11 under a self-insurance program or through an insurance company authorized to do business in the State of Colorado. With respect to general liability, Tenant represents that it is self-insured for general liability in accordance with the provisions of the Colorado Governmental Immunity Act, §24-10-101, et seq., C.R.S., as amended. 12. Casualty Insurance. Landlord may maintain fire and extended coverage insurance on the Leased Premises and additions and improvements by Tenant which have become or are to become the property of Landlord upon termination of this Lease. Said insurance may be maintained with an insurance company authorized to do business in Colorado, in amounts desired by Landlord and at the expense of Landlord, and payments for losses thereunder shall be made solely to Landlord. Tenant shall provide insurance on its inventory, equipment, and all other personal property located at the Leased Premises against loss resulting from fire or other casualty at Tenant's sole cost. Tenant shall have the right to provide such insurance under a self-insurance program, or, at any time during the term of this Lease, to provide such insurance through an insurance company. Whenever (i) any loss, cost, damage or expense resulting from any peril described in this paragraph 12 is incurred by any party to this Lease in connection with the Leased Premises or any part or contents thereof, and (ii) such party is then covered in whole or part by insurance with respect to such loss, cost, damage or expense, then the party so insured hereby releases the other party, its officers, agents and employees from any liability it may have on account of such loss, cost, damage or expense to the extent of any amount recovered by reason of such insurance and waives any right of subrogation which might otherwise exist in or accrue to any person on account thereof. If either Landlord or Tenant fails to maintain in force any insurance required by this Lease to be carried by it, then for purposes of this waiver of subrogation the party failing to carry such insurance shall be deemed to have been fully insured and to have recovered the entire amount of its loss. 13. Casualty. In the event of a fire or other casualty in or to the Leased Premises, Tenant shall immediately give notice thereof to Landlord. If the Leased Premises shall be damaged by fire or other casualty so as to render the Leased Premises untenantable, and Landlord, in its sole discretion, elects to repair the same, this lease shall continue. In the event the Leased Premises shall be damaged by fire or other casualty and Landlord shall decide not to rebuild or repair(which decision Landlord may make in its sole discretion), then this Lease shall terminate. 14. Public Taking. If the Leased Premises, or any part thereof, is taken by or transferred under threat of condemnation, this Lease shall terminate on the date the Leased 4 Premises shall be so taken or transferred and the rent shall be apportioned as of that date. No part of any condemnation award or payments in lieu thereof made by the condemning authority shall belong to the Tenant, except the Tenant shall be entitled to payments made by the condemning authority for its relocation expenses, if any. 15. Breach of Lease. If default shall be made in the payment of any sum to be paid by Tenant under this Lease,and such default shall continue for 30 days,after written notice of default is given by Landlord to Tenant, or default shall be made in the performance of any of the other covenants or conditions which Tenant is required to observe and to perform, and such default shall continue for 60 days, after written notice of default is given by Landlord to Tenant, or if Tenant shall abandon or vacate the Leased Premises, then Landlord may treat the occurrence of any one or more of the foregoing events as a breach of this Lease. 16. Remedies Upon Breach. In the event of a breach of this Lease by Tenant,Landlord may have any one or more of the following described remedies, in addition to all other rights and remedies provided at law or in equity: (a) Landlord may terminate this Lease and forthwith repossess the Leased Premises and may sue Tenant for damages. (b) Landlord may retake possession of the Leased Premises and shall have the right, without being deemed to have accepted a surrender thereof, and without terminating this Lease, to relet same for the remainder of the term provided for herein; and if the rent received through such reletting does not at least equal the rent provided for herein, Tenant shall pay and satisfy any deficiency between the amount of the rent so provided for and that received through reletting. Tenant shall return the building to its original condition, reasonable wear and tear excepted,but Tenant shall not be responsible for renovating, making alterations or decorating the premises for a new occupant. Landlord shall exercise reasonable efforts to relet the Leased Premises for the remainder of the term provided for herein,but Landlord shall not be obligated to relet the Leased Premises in any manner inconsistent with the provisions of this lease. 17. Non-Waiver. Failure of Landlord to declare any breach or default immediately upon occurrence thereof,or delay in taking any action in connection therewith,or accepting partial or full payment of rent with knowledge of such breach or default, shall not waive such breach or default,but Landlord shall have the right to declare any such breach or default at any time and take such action as might be lawful or authorized hereunder, either at law or in equity. 18. Assignment or Sublease. Neither this Lease nor any part of the Leased Premises shall be assigned or sublet by Tenant. However, Landlord and Tenant acknowledge that Tenant will enter into an agreement with Pueblo Rescue Mission, a Colorado nonprofit corporation, to manage and operate the Leased Premises as an overnight warming shelter during the term of this lease. 19. Signs. Tenant shall not, without Landlord's prior written consent, install, affix or use any signs or other advertising or identifying media on the exterior or interior of the Leased 5 Premises. 20. Notices. All notices and demands which may be or are required to be given by either party to the other hereunder shall be in writing, and delivered in person or sent by United States certified mail,postage prepaid.Notices and demands to Landlord shall be addressed to it at: Frank Molinaro, 27907 Cumbres Place, Pueblo, CO 81006 or to such other place as the Landlord may from time to time designate in a written notice to the Tenant. Notices and demands to the Tenant shall be addressed to it at: 1 City Hall Place, Pueblo, Colorado, 81003, Attention: City Manager (or Mayor as applicable), with a copy to City Attorney, 1 City Hall Place, 3rd Floor, Pueblo, CO 81003 or to such other firm or to such other place as Tenant may from time to time designate in a written notice to the Landlord. All notices shall be deemed given on the date of such delivery or mailing. 21. Independent Contractor. The Landlord shall perform its duties hereunder as an independent contractor and not as an employee of Tenant. Neither Landlord nor any agent or employee of Landlord shall be or shall be deemed to be an agent or employee of the Tenant. Landlord shall pay when due all required employment taxes and income taxes on any monies paid by the Tenant pursuant to this Lease. Landlord shall not have authorization, express or implied, to bind the Tenant to any agreements, liability, or understanding except as expressly set forth herein. 22. Successors and Assigns. This Lease shall be binding upon and inure to the benefit of the successors and assigns of Landlord, and shall be binding upon and inure to the benefit of Tenant and Tenant's successors. 23. Additional Tenant Obligations. On the last day of the term hereof, or on any sooner terminations, Tenant shall surrender the Premises to Landlord in good condition, broom clean, ordinary wear and tear excepted. Tenant shall repair any damage to the Premises occasioned by its use thereof. 24. Miscellaneous: (a) The pronouns of any gender shall include the other genders, and either the singular or the plural shall include the other. (b) The rights and remedies of Landlord hereunder, and any other rights and remedies provided by law shall be construed as cumulative and no one of them is exclusive of any other right or remedy. Such rights and remedies shall further be continuing rights,none of which shall be exhausted by being exercised on one or more occasions. (c) Whenever in this Lease Landlord reserves or is given the right and power to give or withhold its consent to any action on the part of Tenant, such right and power shall not be exhausted by its exercise on one or more occasions, but shall be a continuing right and power for the full term of this Lease. (d) Tenant acknowledges and agrees that it has not relied upon any statements, 6 representations,agreements or warranties except such as are expressed herein. No amendment or modification of this Lease shall be valid or binding unless expressed in writing and executed by the parties hereto in the same manner as the execution of this Lease. (e) If any clause or provision of this Lease is illegal, invalid or unenforceable under present or future laws effective during the term of this Lease, then and in that event,it is the intention of the parties hereto that the remainder of this Lease shall not be affected thereby. (f) This Lease is made in and shall be governed by and interpreted in accordance with the laws of the State of Colorado. (g) This Lease may not be altered, changed or amended, except by an instrument in writing, signed by both parties hereto. (h) In case suit shall be brought for an unlawful detainer of the said Premises for the recovery of any rent due under the provisions of this Lease or because of the breach of any other covenant herein contained on the part of Tenant to be kept or performed,the prevailing party in said litigation or arbitration shall be entitled to recover all reasonably attorney's fees and costs of litigation or arbitration. IN WITNESS WHEREOF, the parties hereto have executed this Lease as of the date aforesaid. LANDLORD 3 JFK LLC a Colorado limited liability company By: Named?-1- am 3pt1, p. (,�iS f/4 Z/4 Title: Manager' STATE OF COLORADO ) ) ss. COUNTY OF PUEBLO1-4) D ccr-4r - The foregoing instrument was acknowledged before me this 5 day of No-vember, 2018 byLM f ag7o i s Manager of 3 JFK LLC, a Colorado limited liability company. Witness my hand and official seal. My commission expires: I ` 0 c k . [ SEAL] I1i . Notary Public 7 aaaarieradmarisamiarowidan DEBORAH G.RANKIN NOTARY PUBLIC STATE OF COLORADO NOTARY ID 19874164900 My Commission Expires 01-30-2021 TENANT CITY OF PUEBLO, COLORADO A MUNICIPAL CORPORATION ATTEST: cV R na By: , l Acting City Clerk Ed Brown e w 1 Vice President of the City Council 8