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HomeMy WebLinkAbout14128RESOLUTION NO. 14128 A RESOLUTION APPROVING A SECOND LEASE EXTENSION AGREEMENT BETWEEN THE CITY OF PUEBBLO, A MUNICIPAL CORPORATION, AND THE WESTMINSTER PRESBYTERIAN CHURCH, AND AUTHORIZING THE PRESIDENT OF CITY COUNCIL TO EXECUTE THE SAME BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1: The Second Lease Extension Agreement dated December 26, 2018, by and between the Westminster Presbyterian Church, Lessor, and the City of Pueblo, a Municipal Corporation, Lessee, relating to the extension of the Amended Lease Agreement for a parcel of land used for a public playground, park and related recreational facilities, a copy of which is attached hereto, having been approved as to form by the City Attorney, is hereby approved. SECTION 2: The President of City Council is hereby authorized and directed to execute the Second Lease Extension Agreement on behalf of the City, and the City Clerk is directed to affix the seal of the City thereto and attest the same. SECTION 3: 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 Second Lease Extension Agreement to effectuate the transactions described herein. SECTION 4: This Resolution shall become effective immediately upon passage. INTRODUCED: December 26, 2018 BY: Ed Brown MEMBER OF CITY COUNCIL APPROVED: PRESIDENT OF CITY COUNCIL ATTESTED BY: ACTING CITY CLERK City Clerk’s Office Item # M-7 BACKGROUND PAPER FOR PROPOSED RESOLUTION COUNCIL MEETING DATE: December 26, 2018 TO: President Christopher A. Nicoll and Members of City Council CC: Sam Azad, City Manager VIA: Brenda Armijo, Acting City Clerk FROM: Steven Meier, Director of Parks and Recreation SUBJECT: A RESOLUTION APPROVING A SECOND LEASE EXTENSION AGREEMENT BETWEEN THE CITY OF PUEBLO, A MUNICIPAL CORPORATION, AND THE WESTMINSTER PRESBYTERIAN CHURCH, AND AUTHORIZING THE PRESIDENT OF CITY COUNCIL TO EXECUTE THE SAME SUMMARY: This Resolution will approve a 10-year extension and automatic renewals of the Amended Lease Agreement between the City of Pueblo and the Westminster Presbyterian Church for property located southwest of the church, commonly known as “Sunset Park”. PREVIOUS COUNCIL ACTION: City Council approved the original Lease Agreement on October 26, 1970. The Lease Agreement was terminated and replaced with the Amended Lease Agreement on November 22, 1971 through Resolution 2813. The term of the lease was extended to December 31, 2016 by the Lease Extension Agreement dated September 23, 1996 through Resolution 7956. BACKGROUND: This property has been utilized as a City park and maintained as such by the City since the original agreement was approved in October of 1970. The most recent extension expired December 31, 2016. Per the terms of the Amended Lease Agreement, the leased property is maintained by the City as a public park in exchange for the City paying one dollar ($1.00) per year in rent. FINANCIAL IMPLICATIONS: Westminster Presbyterian Church is requesting the City pay the sum of one dollar ($1.00) per year during the term of the lease. Expenses associated with routine maintenance of the turf, trees, shrubbery, and play equipment have been included within the Park and Recreation Department’s annual operating budget. Pueblo City Schools also share responsibility for maintenance and repairs of the irrigation system located at this park site because Sunset Park School is adjacent to the property. BOARD/COMMISSION RECOMMENDATION: None STAKEHOLDER PROCESS: The Westminster Presbyterian Church’s governing board met and wishes to continue the lease with the City. The letter requesting the continuation of the lease is attached hereto. ALTERNATIVES: Should Council choose not to approve the lease extension, the property will return to the Westminster Presbyterian Church and the City would need to remove its onsite play equipment. RECOMMENDATION: Approval of the Resolution. Attachments: Second Lease Extension Agreement Letter Requesting Lease Extension Site Map SECOND LEASE EXTENSION AGREEMENT THIS SECOND LEASE EXTENSION AGREEMENT("Second Extension") is entered into as of December 26, 2018 by and between the City of Pueblo, a Municipal Corporation, ("Lessee") and The Westminster Presbyterian Church ("Lessor"). WHEREAS, Lessor and Lessee entered into the Lease Agreement dated October 26, 1970 for use of the Lessor's real property described therein for the purpose of a public playground, park, and related recreational facilities ("Lease"); and WHEREAS, Lessor and Lessee entered into the Amended Lease Agreement dated November 22, 1971 for use of the Lessor's real property described therein for the purpose of a public playground, park, and related recreational facilities, and terminating the original Lease ("Amended Lease"); and WHEREAS, Lessor and Lessee entered into the Lease Extension Agreement dated September 23, 1996, which purported to extend the term of the Lease to December 31, 2016 ("First Extension"); and WHEREAS, the parties understand and agree that the First Extension was intended to and did extend the term of the Amended Lease, and that the original Lease was properly terminated by the Amended Lease; and WHEREAS,the parties understand and agree that the Amended Lease has not lapsed or expired at any time and has been legally enforceable since its execution. NOW,THEREFORE,in consideration of the foregoing and mutual covenants contained herein, Lessor and Lessee agree as follows: 1. The term of the Amended Lease is hereby extended upon the same covenants and provisions therein to December 31, 2028. Thereafter, the Amended Lease shall automatically renew on an annual basis, where each renewal term shall begin on January 1 and end on December 31 of that year, unless earlier terminated. Either party may terminate the Amended Lease by providing written notice of its intent not to renew at least thirty (30) days prior to the end of the then current term. 2. Except as expressly modified by this Second Extension,the Amended Lease shall remain in full force and effect. Any obligations remaining to be performed under the original Amended Lease by either party are not waived or excused in any manner but shall be fully performed in accordance with the terms and conditions of the Amended Lease and any amendments thereto. Unless otherwise stated, all terms shall be as defined in the Amended Lease. Executed in Pueblo, Colorado as of the day and year first above written. CITY OF PUEBLO, [SEAL] A MUNICIPAL CORPORATION ATTEST;--&11 Vfl—LAfvu BY: Acting City Clerk v ouncil President APPROVED AS TO FORM: .. ..,;,,,,J,.. 1.,./. 0,,,,....., Daniel C. Kogovsek, City Atto ey THE WESTMINSTER PRESBYTERIAN CHURCH [SEAL] ATTEST: BY: (p pou.Q-su,J