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HomeMy WebLinkAbout10082ORDINANCE NO. 10082 AN ORDINANCE APPROVING THE ASSIGNMENT OF HANGAR GROUND LEASE BY AND BETWEEN THE CITY OF PUEBLO, A MUNICIPAL CORPORATION, THERESA F. GARCIA, KENNETH JOHNSON, AND CHRISTINA JOHNSON, AND AUTHORIZING THE MAYOR TO EXECUTE SAME WHEREAS, City Council approved a Hangar Ground Lease dated April 11, 2005, with John Barger (“Barger”) evidenced by Resolution No. 10361 for the property commonly known as 305 Skyway Street, Pueblo, Colorado 81001; and WHEREAS, The Hangar Ground Lease dated April 11, 2005, was transferred from Barger to Theresa F. Garcia (“Garcia”) through a Statement of Transfer effective on August 1, 2013 (“Statement”) in conjunction with the Personal Representative’s Deed recorded on September 4, 2013 in Pueblo County at Reception No. 1954279 (“PR Deed”); and WHEREAS, Garcia seeks assignment of the Hangar Ground Lease to Kenneth Johnson and Christina Johnson; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1: The Assignment of Hangar Ground Lease (“Assignment”) between the City of Pueblo, a Municipal Corporation, Theresa F. Garcia, Kenneth Johnson, and Christina Johnson, a copy of which is attached hereto and made a part hereof by reference, after having been approved as to form by the City Attorney, is hereby approved. SECTION 2: The Mayor is hereby authorized to execute the Assignment on behalf of the City of Pueblo, and the City Clerk shall affix the Seal of the City thereto and attest same. SECTION 3: The officers and staff of the City are authorized to perform any and all acts consistent with the intent of this Ordinance and the attached Assignment to implement the transactions, policies, and procedures 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 December 13, 2021. Final adoption of Ordinance by City Council on December 27, 2021 . President of City Council Action by the Mayor: ☒ Approved on December 30, 2021 . □ 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 Deputy City Clerk City Clerk’s Office Item # R-9 Background Paper for Proposed Ordinance COUNCIL MEETING DATE: December 13, 2021 TO: President Lawrence W. Atencio and Members of City Council CC: Nicholas A. Gradisar, Mayor VIA: Marisa Stoller, City Clerk FROM: Greg Pedroza, Director of Aviation SUBJECT: AN ORDINANCE APPROVING THE ASSIGNMENT OF HANGAR GROUND LEASE BY AND BETWEEN THE CITY OF PUEBLO, A MUNICIPAL CORPORATION, THERESA F. GARCIA, KENNETH JOHNSON, AND CHRISTINA JOHNSON, AND AUTHORIZING THE MAYOR TO EXECUTE SAME SUMMARY: This Ordinance will approve the Assignment of Hangar Ground Lease between the City of Pueblo, Theresa F. Garcia, Kenneth Johnson, and Christina Johnson for the property commonly known as 305 Skyway Street, Pueblo, Colorado 81001. The Hangar Ground Lease will be assigned from Ms. Garcia to Mr. and Mrs. Johnson. PREVIOUS COUNCIL ACTION: Council approved a Hangar Ground Lease dated April 11, 2005, with John Barger (“Barger”) evidenced by Resolution No. 10361 for the property commonly known as 305 Skyway Street, Pueblo, Colorado 81001. BACKGROUND The Hangar Ground Lease dated April 11, 2005, was transferred from Barger to Theresa F. Garcia (“Garcia”) through a Statement of Transfer effective on August 1, 2013 (“Statement”) in conjunction with the Personal Representative’s Deed recorded on September 4, 2013, in Pueblo County at Reception No. 1954279 (“PR Deed”). On November 4, 2021, Garcia offered first Right of Refusal to the City of Pueblo Department of Aviation prior to sale of the associated hangar. The Department of Aviation refused purchase and approved transfer of the Hangar Ground Lease to Kenneth Johnson and Christina Johnson. The Assignment of Hangar Ground Lease has been signed by the seller and both buyers. FINANCIAL IMPLICATIONS: Not applicable to this Ordinance. BOARD/COMMISSION RECOMMENDATION: Not applicable to this Ordinance. STAKEHOLDER PROCESS: Not applicable to this Ordinance. ALTERNATIVES: If this Ordinance is not approved, the sale of the hangar at 305 Skyway Street will be stopped, creating potential liability for the City. RECOMMENDATION: Approval of the Ordinance. Attachments: Ordinance Assignment of Hangar Ground Lease ASSIGNMENT OF HANGAR GROUND LEASE ok THIS SSit,NMENT AGREEMENT ("Agreement") is entered into as of this 71.h ay of 'Dccr.•••btr, 2021 ("Effective Date") by and between the City of Pueblo, a Municipal Corporation, with an address of One City Hall Place,Pueblo,Colorado 81003 ("Lessor"), and Theresa F.Garcia, an individual with an address of 11211 Bayne Way, Parker, Colorado 80134 ("Assignor"), and Kenneth Johnson and Christina Johnson, each an individual, with an address of 1270 S. Walden Circle, Pueblo West, Colorado 81007(jointly and severally liable as the "Assignee"). WHEREAS, Lessor entered into a certain Hangar Ground Lease dated April 11, 2005 ("Lease") with John Barger ("Barger") evidenced by Resolution No. 10361 for the property commonly known as 305 Skyway Street, Pueblo, Colorado 81001, the legal description of which is contained in the Lease attached hereto as Exhibit"A"; and WHEREAS, the Lease was transferred from Barger to Assignor through a Statement of Transfer effective on August 1, 2013 ("Statement") in conjunction with the Personal Representative's Deed recorded on September 4, 2013 in Pueblo County at Reception No. 1954279 and with the Personal Representative's Deed recorded on September 4,2013 in Pueblo County at Reception No. 1954280 (together the"PR Deeds"); and WHEREAS, Assignor now wishes to assign the Lease to Assignee, and Assignee wishes to assume said Lease; and WHEREAS, Lessor consents to said assignment and Assignee's assumption of the Lease as amended in accordance with the terms of this Assignment. NOW, THEREFORE, in consideration of the foregoing recitals and the terms, conditions and mutual promises set forth in this agreement, the parties agree as follows: 1. Assignment. Assignor hereby transfers, sells, and assigns to Assignee, Assignor's right, title, and interest in and to the amended Lease. 2. Assumption. Assignee accepts the assignment of the amended Lease and hereby assumes and agrees to observe. perform, and otherwise discharge when due all obligations of the Lessee under the Lease. A copy of the Lease, including the Statement and PR Deeds, is attached hereto as Exhibit "A" and incorporated herein by reference. Assignee's obligations shall include.but are not limited to,the making of all payments and the performance of all covenants and duties of the Lessee. 3. Consent. Lessor hereby consents to the foregoing assignment and assumption of the amended Lease in consideration for the terms of this Agreement, and Lessor agrees to afford Assignee the same rights under the amended Lease as previously enjoyed by Assignor. No further assignment of the Lease. or any part thereof, shall he made without the prior written consent of Lessor. Any assignment or transfer without Lessor's prior written consent shall be void. 4. Use of Hangar. Assignee acknowledges and agrees that the leased premises shall only be used for the storage of aircraft and minor incidental materials and any use specifically permitted under the Lease. The leased premises shall not be used for the storage of non-aeronautical personal property,living accommodations,or in any other way inconsistent with the Lease. Failure to abide by this provision shall constitute a material breach of the Lease and subject it to immediate termination. 5. Indemnification. Assignor and Assignee shall jointly and severally indemnify, defend, and hold harmless the Lessor. its officers, directors. employees, representatives, agents, and attorneys from any claims, causes of action, or liability of any nature relating in any way to this Agreement, the Lease, the Statement, or the PR Deeds. 6. No Defaults. By executing this Agreement, Assignor agrees, represents and warrants to Assignee that Lessor is not in default in the performance of the Lease, nor has Lessor committed any breach thereof, and Assignor has no claim against Lessor in connection with the Lease or the leasing. use, or operation of the Premises. By executing this Agreement, and as of the Effective Date.Lessor agrees that to the best of its knowledge: Assignor is not in default in the performance of the Lease, Assignor has not committed any breach thereof, and Lessor has no claim against Assignor in connection with the Lease or the leasing, use. or operation of the Premises. 7. Effective Date. This Agreement shall become effective on the Effective Date set forth above. IN WITNESS WHEREOF, the parties have executed this assignment as of the Effective Date. ASSIGNOR: LESSOR: THERESA F. GARCIA CITY OF PUEBLO. A MUNICIPAL CORPORATION / s By: By: Nicholas A. Gra Isar Title: Title: Mayor ASSIGNEE: KENNETH JO .'SON ATTEST: C :lerk /Ze By: Title: CHRISTINA JOHNSON By Title: /j 7,.ct-