HomeMy WebLinkAbout09772ORDINANCE NO. 9772
AN ORDINANCE APPROVING AN AMENDMENT TO A
HANGAR LEASE BETWEEN THE CITY OF PUEBLO, A
COLORADO MUNICIPAL CORPORATION AND
LOCKHEED MARTIN CORPORATION, A MARYLAND
CORPORATION, RELATING TO LAND AND A HANGAR
BUILDING LOCATED AT THE PUEBLO MEMORIAL
AIRPORT AND AUTHORIZING THE MAYOR TO EXECUTE
SAID AMENDMENT
BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1.
The Amendment to hangar lease dated August 24, 2020 between the City of
Pueblo, a Colorado municipal corporation and Lockheed Martin Corporation, a Maryland
corporation (“Company”) a copy of which is attached hereto and incorporated herein by
this reference, having been approved as to form by the City Attorney is hereby approved.
SECTION 2.
The Mayor is authorized to execute and deliver the Amendment to hangar lease in
the name of the City and the City Clerk is directed to affix the seal of the City thereto and
attest 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 to hangar lease
which are necessary or appropriate to implement the transactions described therein.
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 August 28, 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-5
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: Daniel C. Kogovsek, City Attorney
SUBJECT: AN ORDINANCE APPROVING AN AMENDMENT TO A HANGAR LEASE
BETWEEN THE CITY OF PUEBLO, A COLORADO MUNICIPAL CORPORATION
AND LOCKHEED MARTIN CORPORATION, A MARYLAND CORPORATION,
RELATING TO LAND AND A HANGAR BUILDING LOCATED AT THE PUEBLO
MEMORIAL AIRPORT AND AUTHORIZING THE MAYOR TO EXECUTE SAID
AMENDMENT
SUMMARY:
Attached is an Ordinance approving and authorizing the Mayor to sign an amendment to a hangar
lease between the City and Lockheed Martin Corporation, a Maryland Corporation (“Company”).
PREVIOUS COUNCIL ACTION:
On July 24, 2017, by Ordinance No. 13734, City Council approved the original two year hangar
lease between the City and Company.
BACKGROUND:
The City and the Company have negotiated an extension to the hangar lease containing the
following terms and conditions:
1. The lease is for approximately 22,500 square feet of an airplane hangar located
at the Pueblo Memorial Airport.
2. The extended term of the lease is for two years, with the Company having the
option to renew the lease for an additional two terms of one year each. The
monthly base rent for the hangar is $6,000 increasing to $6,500 per month for the
first renewal term and $7,000 per month for the second renewal term. In addition,
the Company agrees to pay landing fees and further agrees to reimburse the City
for snow removal.
3. The amended hangar lease is made on a “triple net” basis with the Company
paying all applicable taxes, insurance and utilities. In addition, the Company
agrees to pay the City of Pueblo’s combined service fee.
4. The City agrees to install certain electrical upgrades to the hangar building, in an
amount not to exceed Thirty-two thousand Dollars ($32,000.00) in accordance with
specifications agreed to by the parties.
FINANCIAL IMPLICATIONS:
As set forth above.
BOARD/COMMISSION RECOMMENDATION:
Not applicable to this Ordinance.
STAKEHOLDER PROCESS:
Not applicable to this Ordinance.
ALTERNATIVES:
If this Ordinance is not approved the hangar lease will not be extended and the City will not receive
additional income from the Company for the lease of the airport hangar building.
RECOMMENDATION:
The Pueblo Economic Development Corporation recommends approval of this Ordinance.
Attachments: Proposed Ordinance and Proposed amendment to hangar lease
AMENDMENT TO LEASE
THIS AMENDMENT TO LEASE ("Amendment") entered into this 24th day of
August, 2020 between the City of Pueblo, a Colorado municipal corporation ("Lessor")
and Lockheed Martin Corporation, a Maryland corporation ("Lessee"). Lessor and
Lessee may be individually referred to herein as "Party" or collectively referred to as
"Parties."
WHEREAS, Lessor and Lessee entered into an original Lease ("Lease") dated
July 24, 2017 through which Lessor leased approximately 22,500 rentable square feet
("RSF") located 32501 Walt Bassett Ave., Pueblo, CO 81001 (the "Leased Premises");
and
WHEREAS, Lessee has requested that Lessor install certain electrical upgrades
to the Leased Premises and Lessor has agreed to do so in exchange for a longer lease
term.
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, Lessor and Lessee agree as follows:
1. Leased Premises. Section 1.03 of the Lease is rescinded and replaced and
restated as follows:
1.03 Prior to September 30, 2020, Lessor shall install certain electrical
upgrades to the Leased Premises, as agreed to by the Parties, at Lessor's sole cost and
expense, in an amount not to exceed Thirty-two Thousand Dollars ($32,000.00).
2. Term. Section 2.01 of the Lease is rescinded and replaced and restated
as follows:
2..01 The term of this Lease is from July 24, 2020 (the "Commencement
Date") through July 23, 2022.
3. Renewals. The two (2) options to renew the Term of the Lease set forth in
Section 2.02 shall apply such that the first Renewal Term, if exercised, shall commence
on July 24, 2022.
4. Rent. Section 3.01 of the Lease is rescinded and replaced and restated
as follows:
3.01 Lessee shall pay to Lessor monthly rent ("Base Rent") of $6,000.00 in
advance, without notice or demand, beginning with the Commencement Date and on the
1St day of each month thereafter during the entire term. Base Rent for the first Renewal
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Term is $6,500.00 per month with the same terms and conditions of the initial Lease.
Base Rent for the second Renewal Term is $7,000.00 per month with the same terms
and conditions of the initial Lease. Base Rent for any partial months shall be pro-rated
based on the number of days in such month.
5. Ratification of prior Lease. The Lease between the Parties, which is
incorporated herein by this reference, shall remain in full force and effect, except as
amended by this Amendment.
Executed at Pueblo, Colorado, the day and year first above written.
LESSOR:
CITY OF PUEBLO
A Colorado Municipal Corporation [Seal]
•
By: �&41 Aer.Cr0tt..I&di Attes . C
Nicholas A. Gradisar City Clerk
Mayor
LESSEE:
LOCKHEED MARTIN CORPORATION
A Maryland corporation
By: LMC Properties, Inc., Attorney in Fact
under Irrevocable Power of Attorney effective April 4, 2016
By devit7, -"
Name: Charles B. Hardie
Title: Manager- Real Estate
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