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Home My WebLink About09771As Amended August 24, 2020 ORDINANCE NO. 9771 AN ORDINANCE APPROVING AN AMENDMENT NO. 2 TO A FACILITY RENTAL AGREEMENT BETWEEN THE CITY OF PUEBLO, A COLORADO MUNICIPAL CORPORATION, AND THE PUEBLO BULLS HOCKEY CLUB, INC., A COLORADO CORPORATION, FOR THE USE OF THE PUEBLO ICE ARENA AND AUTHORIZING THE MAYOR TO EXECUTE SAID AMENDMENT BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. The Amendment No. 2 to the Facility Rental Agreement (“Amendment”) between the City of Pueblo, a Colorado Municipal Corporation and the Pueblo Bulls Hockey Club, Inc., a Colorado Corporation, dated August 24, 2020, a true copy of which is attached hereto, having been approved as to form by the City Attorney, is hereby approved. SECTION 2. The Mayor is hereby authorized and directed to execute the Amendment No. 2 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 authorized and directed to perform any and all acts consistent with this Ordinance and the attached Amendment No. 2 to effectuate the transactions described herein. SECTION 4. This Ordinance shall become effective on the date of final action by the Mayor and City Council. Action by City Council: Introduced and initial adoption of Ordinance by City Council on August 10, 2020 . Final adoption of Ordinance by City Council on August 24, 2020 . President of City Council Action by the Mayor: □ Approved on . □ 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 As Amended August 24, 2020 City Clerk’s Office Item # R-4 Background Paper for Proposed Ordinance COUNCIL MEETING DATE: August 10, 2020 TO: President Dennis E. Flores and Members of City Council CC: Mayor Nicholas A. Gradisar VIA: Brenda Armijo, City Clerk FROM: Steven Meier, Director of Parks and Recreation SUBJECT: AN ORDINANCE APPROVING AN AMENDMENT NO. 2 TO A FACILITY RENTAL AGREEMENT BETWEEN THE CITY OF PUEBLO, A COLORADO MUNICIPAL CORPORATION, AND THE PUEBLO BULLS HOCKEY CLUB, INC., A COLORADO CORPORATION, FOR THE USE OF THE PUEBLO ICE ARENA AND AUTHORIZING THE MAYOR TO EXECUTE SAID AMENDMENT SUMMARY: This Ordinance will approve an Amendment No. 2 to the Facility Rental Agreement between the City and the Pueblo Bulls Hockey Club (PBHC) to utilize the Pueblo Ice Arena. PREVIOUS COUNCIL ACTION: On November 12, 2018, by Ordinance No. 14082, City Council approved a Facility Rental Agreement between the City and PBHC for use of the Pueblo Ice Arena. BACKGROUND: The Pueblo Bulls Hockey Club has brought a new form of entertainment to the City. However, the COVID-19 pandemic caused an interruption in PBHC’s business, making an adjustment to the Facility Rental Agreement appropriate. FINANCIAL IMPLICATIONS: The Pueblo Bulls Hockey Club has not requested City funds. In order to assure that PBHC continues to be successful, the City has agreed, in the attached Amendment, to rent the facility during the hockey team’s second year of operations, on the same terms and conditions as the first year. Practice Rental Rates (Current Ice Rental Rate - $170.00/hour): Year 2 (May 1, 2020 – April 30, 2021) $ 0.00 per hour Year 3 (May 1, 2021 – April 30, 2022) $ 85.00 per hour Year 4 (May 1, 2022 – April 30, 2023) $ 170.00 per hour Year 5 (May 1, 2023 – April 30, 2024) $ 255.00 per hour Game Rental Rates (Current Ice Rental Rate - $170.00/hour): Year 2 (May 1, 2020 – April 30, 2021) $ 170.00 per hour Year 3 (May 1, 2021 – April 30, 2022) $ 170.00 per hour Year 4 (May 1, 2022 – April 30, 2023) $ 170.00 per hour Year 5 (May 1, 2023 – April 30, 2024) $ 170.00 per hour PBHC will also continue to partner with the ice arena to promote sponsorship opportunities that will assist with its annual operating expenses, where it will receive a 50% profit share on all facility sponsorships it secures. BOARD/COMMISSION RECOMMENDATION: Not applicable to this Ordinance. STAKEHOLDER PROCESS: Not applicable to this Ordinance. ALTERNATIVES: Council could choose not to approve the Amendment No. 2 to the Facility Rental Agreement and jeopardize the Junior Hockey program’s continued use of the Pueblo Ice Arena as its home. RECOMMENDATION: Approval of the Ordinance. Attachments: Proposed Ordinance and proposed Amendment No. 2 to the Facility Rental Agreement AMENDMENT NO. 2 TO FACILITY RENTAL AGREEMENT THIS AMENDMENT NO. 2 TO FACILITY RENTAL AGREEMENT ("Amendment") entered into this 24th day of August, 2020 between the City of Pueblo, a Colorado municipal corporation ("Landlord") and the Pueblo Bulls Hockey Club, Inc., a Colorado corporation ("Tenant"). Landlord and Tenant may be individually referred to herein as "Party" or collectively referred to as "Parties." WHEREAS, Landlord and Tenant entered into an original Pueblo Ice Arena Rental Agreement ("Agreement") on or about November 12, 2018 through which Landlord authorized Tenant to use the Pueblo Ice Arena; and WHEREAS, the COVID-19 pandemic caused an interruption in Tenant's business, making an adjustment to the Agreement appropriate. NOW, THEREFORE, in consideration of the foregoing and the mutual covenants contained herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Landlord and Tenant agree as follows: 1. Base Rent. Section 5 of the Agreement is rescinded and replaced and restated as follows: 5. Tenant shall pay to Landlord without notice, offset, or deduction and prior to use of the Leased Premises a base rent as follows: Practice Rental Rates (Current Ice Rental Rate - $170.00/hour): Year 2 (May 1, 2020 —April 30, 2021) $ 0.00 per hour Year 3 (May 1, 2021 —April 30, 2022) $ 85.00 per hour Year 4 (May 1, 2022 —April 30, 2023) $ 170.00 per hour Year 5 (May 1, 2023—April 30, 2024) $ 255.00 per hour Game Rental Rates (Current Ice Rental Rate - $170.00/hour): Year 2 (May 1, 2020 —April 30, 2021) $ 170.00 per hour Year 3 (May 1, 2021 —April 30, 2022) $ 170.00 per hour Year 4 (May 1, 2022 —April 30, 2023) $ 170.00 per hour Year 5 (May 1, 2023—April 30, 2024) $ 170.00 per hour 2. Ratification of Prior Agreement. The original Pueblo Ice Arena Rental Agreement entered into by the Parties on or about November 12, 2018, is incorporated herein by this reference, and shall remain in full force and effect, except as amended by this Amendment. Executed at Pueblo, Colorado, the day and year first above written. LANDLORD: CITY OF PUEBLO A Colorado Municipal Corporation [Seal] �� - CL'u gy: Atte C A. Gradisar City Clerk Mayor TENANT: PUEBLO BULLS HOCKEY CLUB, INC. A Colorado Corporation By: Print name: Cell et id too) t is irk Print Title: 0 2