HomeMy WebLinkAbout10295ORDINANCE NO. 10295
AN ORDINANCE APPROVING AMENDMENT NO. 1 TO
THE LEASE AND MANAGEMENT AGREEMENT
BETWEEN THE CITY OF PUEBLO, A MUNICIPAL
CORPORATION, AND BREGAR GOLF, LLC, RELATING
TO THE ELMWOOD GOLF COURSE RESTAURANT, AND
AUTHORIZING THE MAYOR TO EXECUTE SAME
WHEREAS, the City of Pueblo and Bregar Golf, LLC entered into the Lease and
Management Agreement dated January 1, 2021 (“Lease”) under which the City granted Bregar
Golf, LLC the exclusive right to occupy, use, and operate the food and beverage operations
within the Restaurant and Lounge of the Elmwood Golf Course clubhouse; and
WHEREAS, City and Bregar Golf, LLC desire to amend the terms of said Lease and
Management Agreement; NOW, THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1.
Amendment No. 1 to the Lease and Management Agreement between the City of
Pueblo, a Municipal Corporation, and Bregar Golf, LLC, a Colorado Corporation, for Certain
Premises at Elmwood Golf Course, attached hereto and having been approved as to form by
the City Attorney, is hereby approved.
SECTION 2.
The Mayor is hereby authorized to execute and deliver said Amendment on behalf of the
City, and the City Clerk shall affix the Seal of the City thereto and attest the same.
SECTION 3.
The officers and staff of the City are authorized to perform any and all acts consistent
with this Ordinance and the attached Lease and Management Agreement 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 September 26, 2022 .
Final adoption of Ordinance by City Council on October 11, 2022 .
President of City Council
Action by the Mayor:
☒ Approved on October 15, 2022 .
□ 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 # R8
Background Paper for Proposed
Ordinance
September 26, 2022
COUNCIL MEETING DATE:
TO: President Heather Graham and Members of City Council
CC: Mayor Nicholas A. Gradisar
VIA: Marisa Stoller, City Clerk
FROM:
Steven Meier, Director of Parks and Recreation
SUBJECT: AN ORDINANCE APPROVING AMENDMENT NO. 1 TO THE LEASE
AND MANAGEMENT AGREEMENT BETWEEN THE CITY OF PUEBLO,
A MUNICIPAL CORPORATION, AND BREGAR GOLF, LLC, RELATING
TO THE ELMWOOD GOLF COURSE RESTAURANT, AND
AUTHORIZING THE MAYOR TO EXECUTE SAME
SUMMARY:
This Ordinance would approve Amendment No. 1 to the Elmwood Golf Course
Restaurant Management Agreement to allow for restaurant repairs and improvements
to be accepted by the City in lieu of rent, subject to terms and conditions.
PREVIOUS COUNCIL ACTION:
None.
BACKGROUND:
On January 1, 2021, Elmwood Golf Course Manager Randal Bregar entered into an
agreement between the City of Pueblo and Bregar Golf, LLC for the operation and
management of the Elmwood Golf Course Restaurant. The leased premises required
extensive work in order to bring up to building and health department codes before
opening in the Spring of 2021. Randal Bregar and his team completed these
renovations by the end of the summer.
In addition to the required restaurant renovations, the City-owned walk-in cooler was in
need of repairs in order to remain functional. Those repairs were completed in early
2022.
On March 21, 2022, Mr. Bregar submitted a request to Parks and Recreation for a 2022
in-kind restaurant rent credit for the amount Bregar Golf, LLC spent on the restaurant
renovations and the cost of the walk-in cooler repairs.
FINANCIAL IMPLICATIONS:
The Golf Course Enterprise would not collect 2022 restaurant rent in lieu of equal value
to the restaurant renovation and equipment repair that was paid for by Bregar Golf,
LLC. The cost for the project is $13,762.06.
BOARD/COMMISSION RECOMMENDATION:
The Golf Course Enterprise Citizens’ Advisory Committee recommends approval of this
Ordinance.
STAKEHOLDER PROCESS:
None.
ALTERNATIVES:
Should the Council choose not to approve the request, Golf Enterprise will be required
to reimburse Bregar Golf, LLC for the renovation and equipment repair expenses.
RECOMMENDATION:
Approval of the Ordinance.
ATTACHMENTS:
1. Amendment No. 1
2. Elmwood GC Restaurant Lease Forgiveness Request - Bregar Golf, LLC
3. Elmwood GC Restaurant Lease Forgiveness Receipts Spreadsheet
AMENDMENT NO. 1 TO THE
LEASE AND MANAGEMENT AGREEMENT
THIS AMENDMENT NO. 1 ("Amendment") to the Lease and Management Agreement is
made and entered into this 10/- day of O c,1 p GM, 2022 by and between the City of Pueblo,
a Municipal Corporation ("City") and Bregar Golf, LLC. a Colorado limited liability corporation
("Manager").
WHEREAS. City and Manager entered into the Lease and Management Agreement dated
January 1.2021 (the "Lease")under which the City granted Manager the exclusive right to occupy.
use, and operate the food and beverage operations within the Restaurant and Lounge of the
Elmwood Golf Course clubhouse: and
WHEREAS. the Leased Premises and walk-in cooler required repair: and
WHEREAS. Manager repaired the walk-in cooler and made improvements to the Leased
Premises, and City is willing to accept said repair and improvements in lieu of rent, subject to the
terms and conditions of the Lease hereby modified.
NOW. THEREFORE. in consideration of the foregoing and the terms and conditions set
forth herein, the parties agree as follows:
1. Manager shall submit invoices and receipts for the repair of the walk-in cooler and
all improvements to the Leased Premises. which shall be attached hereto in Exhibit
A. Manager shall pay for all costs of repair. purchase. and replacement. including
all necessary installation. City shall not be liable for any associated cost. All items
purchased and installed by Manager shall be tagged with City identification and
shall become and remain the property of the City. Manager shall provide any other
documentation requested by City immediately upon request. Failure by Manager to
produce the requested documentation shall constitute a material breach for which
City may immediately upon notice terminate this Amendment and charge rent for
the Waived Months (later defined).
?. Manager shall make any additional repairs or improvements necessitated by the
installation of equipment and improvements to the Leased Premises. including
repairs to the surrounding walls. flooring. water lines, and electrical connections.
All repairs and improvements shall be in keeping with that surrounding portion of
the premises. including paint colors and types of flooring, and shall be at the sole
cost of the Manager.
3. Manager guarantees and warrants that all work was completed by a certified
contractor licensed with the State of Colorado. All work shall be inspected by
Pueblo Regional Building. the Pueblo Department of Public Health and
Environment. and any other required governmental agencies. Manager shall obtain
warranties for the installed equipment and improvements and shall provide a copy
of said warranties to City.
4. Only the improvements to the Leased Premises attached in Exhibit A have received
approval from City. All installed equipment and fixtures, and the additions,
changes. and improvements made to the Leased Premises, shall become the
property of the City upon their installation and completion. Manager shall maintain
and repair the equipment and improvements in accordance with the terms of the
Lease and all warranties.
5. In consideration for Manager making the improvements and repairs detailed herein.
City shall waive 513.762.06 of rent ("Waived Rent") required under the Lease for
the months of October 2022 through January 2023 ("Waived Months"). The
difference between the scheduled rent of S 14,000.00 for the Waived Months and
the Waived Rent of 513,762.06 is S237.94 ("Rent Difference"). The Rent
Difference and the scheduled annual increase in rent beginning January 1. 2023
shall remain due as rent in January 2023. Waiver of rent shall not excuse Manager
from payment of applicable fees or taxes. nor affect the calculation of rent in future
months. Should Manager fail to make improvements and repairs in a timely
manner, as determined by City in its sole and absolute discretion. City may upon
notice to Manager forego any waiver and charge rent for the Waived Months. Said
rent shall be immediately due upon notice without offset or deduction.
6. Should the Lease or this Amendment be terminated by either party or expire prior
to completion of the Waived Months, City shall not be liable to Manager for any
amounts of waived rent or costs associated with the replacements and
improvements made to the Leased Premises.
7. Manager shall indemnify, defend and hold harmless the City and its officers.
employees, and agents against any liability for any damages. attorneys fees, and
restitution that may be imposed by any court or tribunal in any suit. action or
proceeding in law or equity filed by any person or entity based on tort. contract.
statute, violation of civil rights. or any other legal theory. for any physical injury.
psychological injury, death. property damage. or loss that may be related to or
caused by the installation of equipment or making of improvements by Manager or
its contractor to the Leased Premises, including claims of nonpayment or breach of
contract by Manager's contractor. All work to the Leased Premises shall be
adequately insured by Manager or Manager's contractor.
S. Except as expressly modified by this Amendment. the Lease shall remain in full
force and effect. Except as modified by this Amendment. any obligations to be
performed under the Lease by either party are not waived nor excused in any
manner but shall be performed in accordance with the terms and conditions of the
Lease as it existed prior to this Amendment.
IN WITNESS WHEREOF. Manager and City have executed this Amendment as of the
date first written above.
CITY OF PUEBLO.
ATTEST: sir9.1 a MunicipalalCorporation�
By -7efoiT AgOe •
19
City Cler Nicholas A. Gradisar. Mayor
APPROVED AS TO FORM:
. 4<e-749 Vow-
City Attorney
BREGAR GOLF. LLC. a Colorado limited
liability corporation
By z . -
Randal L. Bregar. President
3
Exhibit A
Invoices and Receipts
4
Bregar Golf, LLC
Elmwood Golf Course
3900 Thatcher Ave.
Pueblo,CO 81005
March 21,2022
Parks and Recreation Office
800 Goodnight Ave.
Pueblo,CO 81005
Attn: Steven Meier
Here are the specific numbers we spoke about for the specific updates and repairs needed for the
restaurant at Elmwood. (The Clubhouse @ Elmwood)
The restaurant renovations were a success as our new restaurant purveyors, Only Fresh Concepts, have
done a remarkable job of updating the look and fresh feel in the restaurant. Nothing but positive
feedback has been heard since the construction was completed.
The second piece is the repair of the basement walk-in cooler, owned by the City of Pueblo, in need to
store beverages and food for the restaurant.
The agreement was for Only Fresh Concepts to pay for the updates and repairs and be reimbursed as
lease credit until the total is used.
Restaurant ConstructionT98- $9,462.06
Walk-In Cooler Repair-$4,300.00
Total-914726,4e-- $13,762.06 (See attached receipt spreadsheet-MCS 08.30.22)
I am in possession of all receipts/quotes for your review.
Please provide your approval to proceed as indicated.
Thank you,
Randal Bregar
Director of Golf
Elmwood Golf Course
EW Restaurant Lease Forgiveness Documentation FY2021-Receipts_06.07.2022UPDATED 08.30.22
Randal Bregar.Director of Golf and Restaurant Operations
Elmwood Golf Course
Per_ease and Management Agreement for Restaurant Remises at Elmwood Golf Course cated January 1 2021
Section 7ib;(1)through(4)).page 4. CiTY TO PROVIDE CERTAIN CAPITAL
(b) The City may.n its cescretior reimburse Manager for adcitior.al capital expenses ircurred by Ma-ager for equipment and furniture to be uses
by Manager at the Leasee Premises;proviced that
11) Manager obtains written approval from City for the capita!expenses prior to ircurnng any expenses:anc
J2j Manager provides a detailed proposal to the City describing the equipmert and furniture to be purchases the reason the purchase
is necessary,anc an extimate of costs for the equipment and furniture;and
3) The capital expenses are incurred only for restaurant-elated equipment anc furniture deiiverec to and used solely at the_eased
Premises;and
41 Receipts for all purchases are provided Irtmec ately after the purchases are mace.
RESTAURANT RENOVATION
DATE PURCHASE
VENDOR RECEIPT ft ITEM DESCRIPTION PURCHASED AMT COMMENTS
LOWES 4246608 Key and trash bin 2/13/2021 579.30 Replacement key for bar closet,cemo trash bins
2 _OWES 22446933 Anchor,trim,studs,frp trim 2/13/2021 $554.04 Materials for service station and backroom wall repair
3 LOWES 7328493 Drywall blade,trim,frp 2/14/2021 584.83 Materials for service station and backroom wall repair
4 ._OWES 7933824 Degreaser 2/21/2021 52.67 Degreaser for dogged hood vent
5 LOWES 88046767 PVC pipe,drywall.mud 2/22/2021 575.52 Pipe for ice machine drain,drywall side station
6 ASHLEY a529264 Spackling 2/27/2021 $6.99 Repair wall anc trim clings
7 LOWES 88462597 Paint prep,cleaner,mask 2/27/2021 5197.16 Wall prep sander,deanter tape main dining room
8 LOWES 755890 Electric wall plates 2/28/2021 527.59 Replacement for hall wall plates
9 SHERWIN 8983-8 Paint.caulk,mask 3/1%2021 5268.34 Paneling paint
0 _OWES 31730817 Address numbers 3/2/2021 557.14 Replace and correct address
11 -OWES 4147734 Fasteners 3/7/2021 $5.51 Nuts&bolts for LED lights in backroom
12 LOWES 49137518 Extension SP 3'7/2021 510.70
13 ;.OWES 2687872 Backer,trim,recept 3113%2021 5153.11 Wall repair storage room
14 LOWES 2666645 Backer,trim,mdf 3!13/2021 5221.72 Wall repair storage room
15 SHERWiN 9561-1 Paint,caulk,mask 3/13/2021 533.36 Wall painting
16 _OWES Electrical plates 3/14%2021 513.30 Wall plate replacement
17 -OWES 42741299 Wall plate 3/14/2021 $3.64 Wall plate replacement
18 -OWES 2745522 Backer,trim.mdf 3/14/2021 5194.98 Wall repair
19 uOWES 2724081 Backer,trim.mdf 3/23/2021 5324.03 Wall repair
20 -OWES 42698239 Fbtb 3!25%2021 $115.67 Kitchen and service wall
21 _OWES 419509/1 Lighting fixture and bulb 3/28/2021 514.27 Repair broken bar light fixture
22 :AWES 17245850 Wall lumber 3:31/2021 582.74 West wall frame
23 LOWES 888648502 Wall board,adhesive 4/5/2021 5245.89 Wall paneling dining room
24 -OWES 2363507 Wall and paint materials 4/13/2021 $115.23 Paint and wall repair dining room
25 HM OPT 38317 Floor epoxy and tool 2/3/2021 5210.16 Bar and side station,sealer,finish and applicator
26 HM OPT 62240 Plumbing fixture 2,71412021 $36.21 Bar three sink repair
27 HM OPT 52319 Paint supplies 2/16/2021 5134.59 Floor ane wall coverings
28 HM OPT 59040 Wet vac,wall fastener,floor strip 2/17/2021 5238.73 Repair of crackec and peeling vinyl floor,cleanup
29 HM OPT 47515 Adhesive,degreaser,base 2/18/2021 5111.48 Cracked water valve,cleaner for hoods,wall base replace
30 hM OPT 55163 Sink strainer replacement 2118/2021 518.07
31 HM OPT 70102 Floor repair,plumbing 2:21/2021 5313.23 Repair of crackec&peeling vinyl flooring,plumbing
32 HM OPT 68529 Floor drain pipe and repair 2/22/2021 538.84 Leaking ane dogged floor drains out of coce
33 HM DPT 72058 Wall paint 2/23/2021 $24.66 Brick wall pant
34 HM OPT 73825 Drywall materials,ice machine drain pipe 2/24/2021 591.77 West service wall repair
35 HM OPT 68566 Floor dram fitting,wall sealer 3/3/2021 944,59 Leaking anc clogged floor craws out of coce
36 HM OPT 69188 Wood trimwail stripping 3/4/2021 5334.18 Stripping of wail debris and peeling crywall
37 HM OPT 84963 Kitchen connector,cleaning 3'13,72021 $27.89 Hot wells heavily terraced ane leaking
38 HM DPT 88824 Led tape,bit anc strainer 3.716/2021 593.15 Leaking sink drain repair,broken light fixture
39 HM OPT 9020 Led tape,light switches 3,7162021 $65.99 Light repair and main hallway switch repair
40 HM OPT 27022 Floor epoxy.TV mount 3,/23i2021 547.83 Floor patch.rehang TV out of coce
41 HM OPT 20132 TV hangers 3/31!2021 584.47 Reharg TVs that were out of code
42 SHERWIN 7246 Paint 3/00/21 5171.08 Paint-Receipt says,"BIL TO CO STATE HOSPTAL'
43 SHERWIN 9024-0 Paint 3/2!2021 5163.87 Pairt-Receipt says.'BIL_TO CO STATE HOSPITAL"
44 SHERWIN 9337-6 Paint 3;8/2021 531.42 Paint-Receipt says. 'BIL_TO CO STATE HOSPITAL'
45 SHERW'N 0700-4 Paint 4/7/2021 5394.35 Pairt-Receipt says'BIL_TO CO STATE HOSPSTAL'
46 LOWES 12707203 Electrical switch :/3/2021 5167.83 Wiring to replace code violators
1
EW Restaurant Lease Forgiveness Documentation FY2021-Receipts 06.07.2022 UPDATED 08.30.22
DATE PURCHASE
VENDOR RECEIPT# ITEM DESCRIPTION PURCHASED AMT COMMENTS
47 :OWES 5739825 Supplies 2/7/2021 $108.27 Floor prep,cooler repair,lightng repair,plumbing
48 .OWES 6906459 Service station 2/9/2021 $24.23 Repair loose service station shelving/broken light
49 LOWES 5891716 Floor stain cleaner 2/9/2021 $15.39 Bar floor repair holes and chips
50 i_OWES 88065642 Wall repair supply 2/11/2021 $262.83 Panel board anc achesive
51 _OWES 7954427 Plumbing kitchen 2/21/2021 541.19 Connectors ane fasteners kitchen wall
52 _OWES 6947699 Plumbing kitchen 2/21/2021 $100.00 Connectors anc fasteners kitchen wall
53 LOWES 5926490 Plumbing 2/21/2021 5260.64 Plumbing supplies to fix service station water service
55 LOWES 5123030 Diamond bits 2/23/2021 $53.76 Reroute plumbing to ice machine per Regional Builcing
56 LOWES 6132513 Plumbing lines 2/23/2021 $34.97 Plumbing line ice machine
57 _OWES 6280153 Plumbing;wall 2;25/2021 $75.91 Drain pipe,wall achesive
58 ;.OWES 6730541 Paint supplies 3/2/2021 $39.73
59 .OWES 88906438 Wall covering 3/4/2021 $67493 Paneling,lumber_and adhesive
60 _OWES 5988496 Plumbing kitchen 3/5/2021 560.23 Connectors anc hose for kitchen.wall
61 _OWES 5065103 Wall tool 3/6/2021 523.65 Cauik gun
52 ..OWES 6064918 Wall adhesive 3/6/2021 $122.66 Panel board glue
63 :.OWES 5157570 Gas piping 3/7/2021 567.95 Piping&anchors for kitchen gas lines per Regional
64 LOWES 88409594 Wall covering 3/10/2021 5336.29 Paneling,lumber.fasteners for wall repair
65 COWES 5600744 Plumbing kitchen 3/12/2021 $4293 Replace leaking fitting hose
66 LOWES 6909600 Electrical 3/16/2021 5245.09 Wire,connectors,and boxes to conceal wiring
57 COWES 6013041 Paint supplies 3/17/2021 $103.31 Tape,roller,floor prep,plumbing connectors
68 LOWES 5029926 Plumbing anc electrical 3/17/2021 $109.99 TV hanger,electrical boxes,and plumbing fittings
69 LOWES 88892280 Wall covering 3/27/2021 $45.11 Panel board aria hanging screws
70 :.OWES 88883949 Nickle piano hinge 3/27/2021 $21.96 Hinge to repair breaker box doors
71 .OWES 88883500 Wall paneling 3,/27/2021 $302.65 Panel board,adhesive,fasteners
72 '_OWES 5670138 Titan screws 4/5/2021 $22.36 Wall fasteners
73 :OWES 7049647 Electrical switch 4/21/2021 $27.46 Wiring and light switch repair main hallway
74 LOWES 5726472 Lighting repair 4/29/2021 $129.15 Bulbs for broken,upgrace LED
75 '.OWES 5687067 Wall hangings 5/10/2021 $37.98 Wall covering fixture nooks and hangers
76 ,OWES 5537015 Plumbing fixture 5/20/2021 529.76 Plumbing fittings service station
77 '_OWES 7150272 Electrical 5/27/2021 5175.99 Replace TV hangers conceal power and cable wires
78 _OWES 12481591 Electrical 7,/16/2021 $78.98 Wire for outlets
79 .OWES 12481591 Electrical 7/16/2021 $798 Wire ties
XX _OWES 3535613 Wall repair 2/28/2021 $45.11 Edge razor,scraper,drywall
$9,462.06
WALK-IN COOLER REPAIR
XX THUNDER CONSTRUCTION Walk-In Cooler Repair 54,300.00 Replace concenser.electric work,add refrigerant
Receipt is dated 2/28/2022 $4,300.00
$13,762.06
2