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HomeMy WebLinkAbout09633 ORDINANCE NO. 9633 AN ORDINANCE APPROVING TWO LEASE AGREEMENTS FOR ADVERTISING SIGNS BETWEEN THE CITY OF PUEBLO, A MUNICIPAL CORPORATION, AND LAMAR COMPANIES, AND AUTHORIZING THE MAYOR TO EXECUTE THE SAME WHEREAS, the City owns certain real property at 328 S. Main Street, Pueblo, Colorado and 205 East “B” Street, Pueblo, Colorado; and WHEREAS, City is willing to enter into these Lease Agreements to permit Lamar Companies to continue to lease and use the properties for the purpose of billboard advertising in the City of Pueblo; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1: The Lease Agreement for City property located at 328 S. Main Street, dated January 13, 2020, by and between the City of Pueblo, a Municipal Corporation, and Lamar Companies, a true copy of which is attached hereto, having been approved as to form by the City Attorney, is hereby approved. SECTION 2: The Lease Agreement for City property located at 205 East “B” Street, dated January 13, 2020, by and between the City of Pueblo, a Municipal Corporation, and Lamar Companies, a true copy of which is attached hereto, having been approved as to form by the City Attorney, is hereby approved. SECTION 3: The Mayor is hereby authorized to execute and deliver said Lease Agreements on behalf of the City, and the City Clerk shall affix the Seal of the City thereto and attest the same. SECTION 4: The officers and staff of the City are authorized and directed to perform any and all acts consistent with this Ordinance and the attached Lease Agreements to implement the transactions, policies and procedures described herein. SECTION 5: This Ordinance shall become effective on the date of final action by the Mayor and City Council. Introduced and initial adoption of Ordinance by City Council on December 23, 2019. Final adoption of Ordinance by City Council on January 13, 2020. President of City Council Action by the Mayor: ☒ Approved on January 21, 2020 . ☐ Disapproved on based on the following objections: Mayor Action by City Council After Disapproval by the Mayor: ☐ Council did not act to override the Mayor's veto. ☐ Ordinance re-adopted on a vote of , on ☐ Council action on __________________failed to override the Mayor’s veto. President of City Council ATTEST City Clerk City Clerk’s Office Item # R-4 BACKGROUND PAPER FOR PROPOSED ORDINANCE COUNCIL MEETING DATE: December 23, 2019 TO: President Dennis E. Flores and Members of City Council CC: Nicholas A. Gradisar, Mayor VIA: Brenda Armijo, City Clerk FROM: Steven Meier, Director of Parks and Recreation SUBJECT: AN ORDINANCE APPROVING TWO LEASE AGREEMENTS FOR ADVERTISING SIGNS BETWEEN THE CITY OF PUEBLO, A MUNICIPAL CORPORATION, AND LAMAR COMPANIES, AND AUTHORIZING THE MAYOR TO EXECUTE THE SAME SUMMARY: This Ordinance will approve two (2) new Lease Agreements for a term of eleven-years with automatic annual renewals, replacing the expired lease agreements between the City of Pueblo and Lamar Companies for city property located at 328 S. Main Street (opposite Main Street on east side) and at 205 East “B” Street (known to Lamar as 330 S. Main Street opposite “B” Street on east side). PREVIOUS COUNCIL ACTION: In 2010, City Council approved Resolution No. 11994, approving the purchase of the property upon which the two advertising billboards are maintained. BACKGROUND: In September 2010, the City purchased the property where these two advertising signs are currently located. See attached site map. The lease agreement between the previous property owner and Lamar Companies for use of the signs has since expired with no new agreement created, until now. FINANCIAL IMPLICATIONS: The City will receive $2,000 annually through the term of the agreement. The City will also receive use of each billboard for two months each year. BOARD/COMMISSION RECOMMENDATION: None STAKEHOLDER PROCESS: None ALTERNATIVES: Should Council choose not to approve the two leases, the City will not receive the $2,000 in annual revenue from Lamar Companies. RECOMMENDATION: Approval of the Ordinance. Attachments: Ordinance Lease Agreement for 328 S. Main Street Lease Agreement for 205 East “B” Street Site Map (Ca-)-6 0177- Z o l 1 5-02- LEASE 2- LEASE AGREEMENT FOR ADVERTISING SIGN THIS LEASE AGREEMENT ("Agreement") is made and entered into this 13th day of January , 2020 ("Effective Date"), by and between the CITY OF PUEBLO, a Municipal Corporation, as Lessor (hereinafter referred to as "City"), and the LAMAR COMPANIES, as Lessee (hereinafter referred to as "Lamar"). 1. Leased Premises: The City hereby leases to Lamar that portion of City's property described as follows: 205 East B Street Known to Lamar as 330 S. Main Street opposite B Street (east side) Schedule 536407011 ("Leased Premises") (on which site advertising signs owned and maintained by Lamar presently stand) with the right of access to and egress from such structure by Lamar's employees and vehicles over other lands owned by the City. 2. Term and Base Rent: This lease shall be for a term of eleven (11) years commencing January 1, 2020, at an annual rental of One Thousand Dollars ($1,000.00), payable in advance, in annual installments. The first installment shall be due thirty (30) days after the signing of this lease. After the term of this lease, this lease shall be automatically renewed annually for additional one-year terms unless either the City or Lamar elect not to renew this lease by giving sixty (60) days prior written notice to the other party. 3. Additional "In Kind"Rent: As additional "in kind"rent, during the term of this lease, Lamar agrees to provide the City with two(2) months use of the billboard on the Leased Premises, per year, at no cost to the City. The months selected shall be in the sole discretion of the City. 3.1 Lamar's obligation to pay rent and other payments to Lessor hereunder is absolute and unconditional and rent or additional "in kind"rent shall not be offset, abated, reduced or withheld for any cause whatsoever. 3.2 It is the intent of the parties hereto that this lease be a "net" lease with City incurring no obligation, monetary or otherwise, for any expense of any nature associated with the use and operation of the Leased Premises and any component part thereof by Lamar. 4. Early termination: Lamar may terminate this lease upon giving thirty (30) days prior written notice to the City in the event this lease becomes, in Lamar's sole discretion, economically or otherwise undesirable. In the event of termination prior to expiration, City will return any unearned rentals to Lamar, on a pro rata basis. 5. Signs and Supporting Structures: The City agrees that all material, structures, equipment and other works placed upon the leased premises shall remain the personal property of Lamar and may be removed by Lamar at any time, from time to time. Upon expiration or early termination of this lease, Lamar agrees to remove such personal property from the leased premises within thirty (30) days. Lamar also agrees to restore the surface of the leased premises to its original condition after such removal. 6. Indemnification: Lamar agrees to indemnify and hold the City harmless from all personal injury and damage to City employees or third parties or their property, caused by the installation, maintenance or dismantling of such advertising structure or displays during the term of this lease and from any claim of violation of any federal or state statute, rule or regulation including 1 penalties and reasonable attorney fees incurred by the City in defending against same, and Lamar further agrees to repair any damage to the leased premises resulting from the installation, maintenance or dismantling of such advertising structures or displays. 7. Insurance: During the term of this lease, Lamar agrees to maintain in full force and effect adequate insurance to protect the City and to indemnify the City for any injury to City employees or third parties or damage to their property, resulting from the use, maintenance or dismantling of the sign. 8. Default: Should Lamar fail to pay rent, or additional "in kind" rent, or to perform any other obligation under this lease, within thirty (30) days after such performance is due, Lamar shall be in default under this lease. In the event of such default, City must give Lamar written notice by first class mail and allow Lamar thirty (30) days thereafter to cure any default. 9. Venue and Jury Trial. City and Lamar agree that the venue for all actions or causes of action relating to this Lease or the Leased Premises shall be Pueblo County, Colorado. All such actions shall be filed in the County Court or District Court, County of Pueblo, State of Colorado, and City and Lamar submit to the personal and subject matter jurisdiction of such courts.To the maximum extent allowed by law,each party hereby waives its right to a jury trial. 10. Taxes. Lamar shall be solely responsible for the payment of its own tax obligations including, but are not limited to, sales and use taxes and any possessory interest real property taxes. 11. Time of Essence. Time is of the essence for each and every provision, covenant and condition herein contained and on the part of Lamar to be done and performed. 12. Notices. 12.01 All notices,demands or communications of any kind which may be required or desired to be served, given or made by Lamar upon or to City, under the terms of or in connection with this lease, shall be sufficiently served, given or made (as an alternative to personal service upon City) if such notice, demand or communication is sent by first class United States mail, addressed to: City of Pueblo ATTN: Mayor I City Hall Place, 2"d Floor Pueblo,CO 81003 with copy to: City Attorney 1 City Hall Place, 3rd Floor Pueblo, CO 81003, (or to such other person or address as may be hereafter from time to time be designated for this purpose by City to Lamar in writing). 12.02 All notices, demands or communications of any kind which may be required or desired to be served, given or made by City upon or to Lamar, under the terms of or in connection with this lease, shall sufficiently served, given or made (as an alternative to personal service upon Lamar) if such notice, demand or communication is sent by certified United States Mail, addressed to: Lamar Companies 2110 Naegele Road Colorado Springs, CO 80904 2 (or to such other person or address as may hereafter from time to time be designated for this purpose by Lamar to City in writing). 13. Hold Over. If Lamar shall hold over after the expiration of the term or any renewal term of this Lease, without a signed renewal or new Lease, then Lamar shall be deemed a lessee from month to month on all of the terms and conditions set forth in this lease, except that the annual rental due under Section 2 hereof shall increase by ten percent(10%) over the rent being charged on the year prior to the hold over. Nothing in this Section shall be construed as permission of the Lamar to hold over beyond the expiration of the Term or any Renewal Term of this Lease. IN WITNESS WHEREOF, City and Lamar, by their duly authorized representatives, have executed this Lease on the day and year first above written. REST OF THIS PAGE LEFT INTENTIONALLY BLANK SIGNATURE PAGE TO FOLLOW 3 CITY OF PUEBLO a Colorado Municipal Corporation [ SEAL ] 2-Leas/.5#0144.•1 , Attest aubt.ti' \d Gi By City Clerk Nicholas A. G , Mayor THE LAM OO PANIE By • Tre s Vice President/General Manager 4 Cr'•i-Sc- GO2- lot25--v/ LEASE AGREEMENT FOR ADVERTISING SIGN THIS LEASE AGREEMENT ("Agreement") is made and entered into this 13th day of January , 2020("Effective Date"), by and between the CITY OF PUEBLO, a Municipal Corporation, as Lessor (hereinafter referred to as "City"), and the LAMAR COMPANIES, as Lessee (hereinafter referred to as "Lamar"). 1. Leased Premises: The City hereby leases to Lamar that portion of City's property described as follows: 328 S. Main Street, opposite Main Street(east side) Schedule 536407011 ("Leased Premises") (on which site advertising signs owned and maintained by Lamar presently stand) with the right of access to and egress from such structure by Lamar's employees and vehicles over other lands owned by the City. 2. Term and Base Rent: This lease shall be for a term of eleven (11) years commencing January 1, 2020, at an annual rental of One Thousand Dollars ($1,000.00), payable in advance, in annual installments. The first installment shall be due thirty (30) days after the signing of this lease. After the term of this lease,this lease shall be automatically renewed annually for additional one-year terms unless either the City or Lamar elect not to renew this lease by giving sixty(60) days prior written notice to the other party. 3. Additional "In Kind"Rent: As additional"in kind"rent, during the term of this lease, Lamar agrees to provide the City with two (2) months use of the billboard on the Leased Premises, per year, at no cost to the City. The months selected shall be in the sole discretion of the City. 3.1 Lamar's obligation to pay rent and other payments to Lessor hereunder is absolute and unconditional and rent or additional "in kind" rent shall not be offset, abated, reduced or withheld for any cause whatsoever. 3.2 It is the intent of the parties hereto that this lease be a "net" lease with City incurring no obligation, monetary or otherwise, for any expense of any nature associated with the use and operation of the Leased Premises and any component part thereof by Lamar. 4. Early termination: Lamar may terminate this lease upon giving thirty (30) days prior written notice to the City in the event this lease becomes, in Lamar's sole discretion, economically or otherwise undesirable. In the event of termination prior to expiration, City will return any unearned rentals to Lamar, on a pro rata basis. 5. Signs and Supporting Structures: The City agrees that all material, structures, equipment and other works placed upon the leased premises shall remain the personal property of Lamar and may be removed by Lamar at any time, from time to time. Upon expiration or early termination of this lease, Lamar agrees to remove such personal property from the leased premises within thirty (30) days. Lamar also agrees to restore the surface of the leased premises to its original condition after such removal. 6. Indemnification: Lamar agrees to indemnify and hold the City harmless from all personal injury and damage to City employees or third parties or their property, caused by the installation, maintenance or dismantling of such advertising structure or displays during the term of this lease and from any claim of violation of any federal or state statute, rule or regulation including penalties and reasonable attorney fees incurred by the City in defending against same, and Lamar 1 further agrees to repair any damage to the leased premises resulting from the installation, maintenance or dismantling of such advertising structures or displays. 7. Insurance: During the term of this lease, Lamar agrees to maintain in full force and effect adequate insurance to protect the City and to indemnify the City for any injury to City employees or third parties or damage to their property, resulting from the use, maintenance or dismantling of the sign. 8. Default: Should Lamar fail to pay rent, or additional "in kind" rent, or to perform any other obligation under this lease, within thirty (30)days after such performance is due, Lamar shall be in default under this lease. In the event of such default, City must give Lamar written notice by first class mail and allow Lamar thirty (30) days thereafter to cure any default. 9. Venue and Jury Trial. City and Lamar agree that the venue for all actions or causes of action relating to this Lease or the Leased Premises shall be Pueblo County, Colorado. All such actions shall be filed in the County Court or District Court, County of Pueblo, State of Colorado, and City and Lamar submit to the personal and subject matter jurisdiction of such courts.To the maximum extent allowed by law, each party hereby waives its right to a jury trial. 10. Taxes. Lamar shall be solely responsible for the payment of its own tax obligations including, but are not limited to, sales and use taxes and any possessory interest real property taxes. 11. Time of Essence. Time is of the essence for each and every provision, covenant and condition herein contained and on the part of Lamar to be done and performed. 12. Notices. 12.01 All notices, demands or communications of any kind which may be required or desired to be served, given or made by Lamar upon or to City, under the terms of or in connection with this lease, shall be sufficiently served, given or made(as an alternative to personal service upon City) if such notice, demand or communication is sent by first class United States mail,addressed to: City of Pueblo ATTN: Mayor I City Hall Place, 2❑d Floor Pueblo,CO 81003 with copy to: City Attorney 1 City Hall Place, 3'Floor Pueblo, CO 81003, (or to such other person or address as may be hereafter from time to time be designated for this purpose by City to Lamar in writing). 12.02 All notices, demands or communications of any kind which may be required or desired to be served, given or made by City upon or to Lamar, under the terms of or in connection with this lease, shall sufficiently served, given or made (as an alternative to personal service upon Lamar) if such notice, demand or communication is sent by certified United States Mail, addressed to: Lamar Companies 2110 Naegele Road Colorado Springs, CO 80904 2 (or to such other person or address as may hereafter from time to time be designated for this purpose by Lamar to City in writing). 13. Hold Over. If Lamar shall hold over after the expiration of the term or any renewal term of this Lease, without a signed renewal or new Lease, then Lamar shall be deemed a lessee from month to month on all of the terms and conditions set forth in this lease, except that the annual rental due under Section 2 hereof shall increase by ten percent (10%) over the rent being charged on the year prior to the hold over. Nothing in this Section shall be construed as permission of the Lamar to hold over beyond the expiration of the Term or any Renewal Term of this Lease. IN WITNESS WHEREOF, City and Lamar, by their duly authorized representatives, have executed this Lease on the day and year first above written. REST OF THIS PAGE LEFT INTENTIONALLY BLANK SIGNATURE PAGE TO FOLLOW 3 CITY OF PUEBLO a Colorado Municipal Corporation [ SEAL ] Attested 0CLUVIet, -) By 2(z o' City Clerk Nicholas A. Gra Isar, Mayor THE LAMA' • PANIES By ' • Trevi l Vice President/General Manager 4