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HomeMy WebLinkAbout09788ORDINANCE NO. 9788 AN ORDINANCE APPROVING AN AMENDMENT NO. 2 TO A LEASE BETWEEN THE CITY OF PUEBLO, A COLORADO MUNICIPAL CORPORATION AND PROFESSIONAL BULL RIDERS, LLC, A DELAWARE LIMITED LIABILITY COMPANY FOR STORAGE SPACE LOCATED AT 317 NORTH MAIN STREET, PUEBLO, COLORADO 81003 AND AUTHORIZING THE MAYOR TO EXECUTE SAID AMENDMENT NO. 2 BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. The Amendment No. 2 to the Lease (“Amendment No. 2”) between the City of Pueblo, a Colorado Municipal Corporation, and Professional Bull Riders, LLC, a Delaware Limited Liability Company, a copy of which is attached hereto, having been approved as to form by the City Attorney is hereby approved. The Mayor is authorized to execute and deliver said Amendment No. 2 in the name of the City and the 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 Ordinance and the attached Amendment No. 2 which are necessary or desirable to effectuate the transactions described therein. SECTION 3. This Ordinance shall become effective on the date of final action by the Mayor and City Council nunc pro tunc June 8, 2020. Action by City Council: Introduced and initial adoption of Ordinance by City Council on September 28, 2020. Final adoption of Ordinance by City Council on October 13, 2020 . President of City Council Action by the Mayor: ☒ Approved on October 15, 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-3 Background Paper for Proposed Ordinance COUNCIL MEETING DATE: September 28, 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 NO. 2 TO A LEASE BETWEEN THE CITY OF PUEBLO, A COLORADO MUNICIPAL CORPORATION AND PROFESSIONAL BULL RIDERS, LLC, A DELAWARE LIMITED LIABILITY COMPANY FOR STORAGE SPACE LOCATED AT 317 NORTH MAIN STREET, PUEBLO, COLORADO 81003 AND AUTHORIZING THE MAYOR TO EXECUTE SAID AMENDMENT NO. 2 SUMMARY: Attached is a proposed Ordinance approving and authorizing the Mayor to sign an Amendment No.2 to a lease between the City of Pueblo and Professional Bull Riders, LLC, a Delaware Limited Liability Company (“PBR”). PREVIOUS COUNCIL ACTION: On July 25, 2016, by Resolution No. 13480, City Council approved a one year lease agreement with PBR with two (2) one year options to extend which PBR subsequently exercised. On November 11, 2019, by Ordinance No. 9589, City Council approved Amendment No. 1 to the lease agreement with PBR. BACKGROUND: PBR wishes to continue to lease storage space in the Pope Block building located at 317 North Main Street in Downtown Pueblo. The Pope Block building is owned by the City of Pueblo. FINANCIAL IMPLICATIONS: PBR will continue to lease 2,400 square feet of space located on the first floor of the Pope Block building. The intent of this Amendment No. 2 is to defer the payment of Base Rent for one (1) year (April, 2020 through March, 2021) and to allow PBR to repay the deferred Base Rent ($27,000) during the following two (2) years (April, 2021 through March, 2023). According to Amendment No. 2, the Term of the Lease and Base Rent owed by PBR to the City shall be as follows: Month Base Rent April, 2020 $0 May, 2020 $0 June, 2020 $0 July, 2020 $0 August, 2020 $0 September, 2020 $0 October, 2020 $0 November, 2020 $0 December, 2020 $0 January, 2021 $0 February, 2021 $0 March, 2021 $0 April, 2021 $3,375 May, 2021 $3,375 June, 2021 $3,375 July, 2021 $3,375 August, 2021 $3,375 September, 2021 $3,375 October, 2021 $3,375 November, 2021 $3,375 December, 2021 $3,375 January, 2022 $3,375 February, 2022 $3,375 March, 2022 $3,375 April, 2022 $3,375 May, 2022 $3,375 June, 2022 $3,375 July, 2022 $3,375 August, 2022 $3,375 September, 2022 $3,375 October, 2022 $3,375 November, 2022 $3,375 December, 2022 $3,375 January, 2023 $3,375 February, 2023 $3,375 March, 2023 $3,375 PBR has agreed to continue to pay its pro rata portion of CAM expenses throughout the duration of the rent abatement and thereafter. BOARD/COMMISSION RECOMMENDATION: Not applicable to this Ordinance. STAKEHOLDER PROCESS: Not applicable to this Ordinance. ALTERNATIVES: If this Ordinance is not approved, PBR’s rent abatement will not be authorized. RECOMMENDATION: Approve the Ordinance. Attachments: Proposed Ordinance and proposed Amendment No. 2 to Lease. AMENDMENT NO. 2 TO LEASE THIS AMENDMENT NO. 2 TO LEASE("Amendment No. 2") entered intothis 8th day of June, 2020 between the City of Pueblo, a Colorado municipal corporation ("Landlord") and Professional Bull Riders, LLC a Delaware limited liability company ("Tenant"). WHEREAS, Landlord and Tenant entered into an original Lease("Lease") dated July 1, 2016 through which Landlord leased approximately 2,400 rentable square feet ("RSF") located in the Pope Block Building (the " Leased Premises") located at 317 N. Main Street, Pueblo, CO 81003; and WHEREAS,Landlord and Tenant entered into an Amendment No. 1 ("Amendment No. 1") to the Lease on May 26,2019 which extended the term of the Lease and increased the rent payable by Tenantto Landlord under the extended term; and WHEREAS, the COVID-19 pandemic caused an interruption in the Tenants business,making a deferral of rent payments 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,City and Company agree as follows: 1. Term and Base Rent. The intent of this Amendment No. 2 is to defer the payment of Base Rent for one (1) year (April, 2020 through March, 2021) and to allow Tenant to repay the deferred Base Rent ($27,000) during the following two (2) years (April, 2021 through March, 2023). Accordingly, the Parties agree that the Term of the Lease and Base Rent owed by Tenant to Landlord shall be as follows: Month Base Rent April, 2020 $0 May, 2020 $0 June,2020 $0 July,2020 $0 August,2020 $0 September, 2020 $0 October, 2020 $0 November, 2020 $0 December, 2020 $0 January,2021 $0 February, 2021 $0 March, 2021 $0 April, 2021 $3,375 , 1 May, 2021 $3,375 June,2021 $3,375 July,2021 $3,375 August,2021 $3,375 September, 2021 $3,375 October, 2021 $3,375 November, 2021 $3,375 December, 2021 $3,375 January,2022 $3,375 February, 2022 $3,375 March, 2022 $3,375 April, 2022 $3,375 May, 2022 $3,375 June,2022 $3,375 July,2022 $3,375 August,2022 $3,375 September, 2022 $3,375 October, 2022 $3,375 November, 2022 $3,375 December, 2022 $3,375 January,2023 $3,375 February, 2023 $3,375 March, 2023 $3,375 2. Termination Without Cause Option: Tenant shall have the continuing option to cancel this Lease, as it pertains to the Leased Premises, for any reason whatsoever, by providing Landlord sixty (60) days prior written notice which shall specify the termination date. In the event that Tenant terminates this Lease prior to March 31, 2023, Tenant agrees to repay to Landlord the remaining balance of the deferred Base Rent which has not been reimbursed to Landlord. 3. Tenant's Obligation to Pay a Pro Rata Portion of the Operating Expenses of the Building. The deferral of payments granted herein is for Base Rent only. Tenant understandsthatit remains liablefor the timely payment of its portion of CAM expenses. 4. Ratification of prior agreements. The Lease between the Parties, which is incorporated herein by this reference, and Amendment No. 1, which is incorporated herein by this reference, shall remain in full force and effect, except as amended by this Amendment No. 2. 5. Authority of Mayor. The Mayor executes this Amendment No. 2 pursuant to authority granted him by P.M.C. 1-5-2 (2)(f). Executed at Pueblo,Colorado, the day and year first above written. LANDLORD: [ SEAL ] City of Pueblo,a Colorado Municipal Corporation Attest-- `1d° au1'Y,,- Y-7 City Clerk BNicholas A. Gf Isar Mayor TENANT PROFESSIONAL BULL RIDERS, LLC A DELAWARE LIMITED LIABILITY COMPANY By: ! e" - Name: (iir 4 Title: Manager cry STATE OF ) ss. COUNTY OF The foregoing instrument was acknowledged before me this day of , 2020 by as Manager of Professional Bull Riders, LLC. Witness my hand and official seal. My commission expires: [ SEAL ] Notary Public