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HomeMy WebLinkAbout5017�A RESOLUTION NO. 5017 A RESOLUTION APPROVING LEASE AGREEMENTS INVOLVING OFFICE SPACE TO BE SUBLEASED FROM THE CITY BY THE STATE OF COLORADO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PUEBLO, COLORADO, that: SFCTTnN 1_ The following Leases and Subleases: (a) Lease between the City as Lessee and Pueblo Partners, Ltd. as Lessor for approximately 6,829 square feet of office space on the sixth floor of the United Bank Building and a Sublease of said premises to the State of Colorado; and (b) Lease between the City as Lessee and The Belmont Villa, a partnership as Lessor for approximately 4,959 square feet in the two -story building located at 701 Court Street, Pueblo, Colorado, and a Sublease of said premises to the State of Colorado; copies of which have been distributed to the City Council and are on file in the office of the City Clerk, are hereby approved. SFCTMN 2- The President of the City Council is hereby authorized and directed to execute said Leases and Subleases for and on behalf of the City with such amendments or modifications thereto as the President and City Manager may approve, and the City Clerk is directed to attest same and affix the seal of the City thereto. INTRODUCED: August 9th , 1982 By Mike Occhiato Councilman APPROVED: ATTEST: M We — nt of - C - City Cle AGREEMENT OF LEASE AGREEMENT OF LEASE, made as of this 20th day of September, 1982, between Pueblo Partners, Ltd., DBA: United Bank Building, a Texas Partnership having its principal office at 5307 East Mock- ingbird Lane, Dallas, Texas 75206 (hereinafter referred to as "Landlord "), and the City of Pueblo, Colorado (hereinafter referred to as "Tenant "), WITNESSETH: Landlord hereby leases to Tenant and Tenant hereby leases from Landlord 5740 square feet on the sixth floor to be available for occupancy at the commencment of this lease, as hereinafter described, and an additional adjacent 1370 square feet on said floor to be available for occupancy within 90 days thereafter ( "Premises ") in the building known as United Bank Building ( "Building "), on the corner of 8th Street and Main Street, in the City of Pueblo, Colorado for a term of two years, or until such term shall sooner cease and expire as hereinafter provided, to commence on October 1, 1982 for the 5740 square feet and on the date remodeling is substantially completed or December 31, 1982 for the 1370 square feet, whichever date shall occur later, at an annual rent of $7.50 per square foot of space actually occupied for the first year hereof and $7.80 per square foot of space actually occupied for the second year, which Tenant agrees to pay in lawful money of the United States in equal monthly installments in advance without notice commencing October 1, 1982, and thereafter by the first day of each month during said term, at the office of Landlord or such other place as Landlord may designate. The parties hereto, for themselves, their heirs, distributees, executors, administrators, legal representatives, successors and assigns, hereby covenant as follows: 1. RENT: Tenant shall pay the rent as above and as hereinafter provided. 2. OCCUPANCY: The Premises are leased to Tenant for the sole purpose of its own use for offices or for sublease to the State of Colorado for use as a lottery headquarters and offices and for no other purpose, and Tenant agrees that it will use the Premises in such manner so as not to interfere with or infringe on the rights of other tenants in the Building. Tenant agrees not to use or permit the Premises to be used in violation of any law, ordinance or regulations of any governmental authority, fire insurance rating organization or other body having jurisdiction, or any applicable policy of insurance. Tenant will not permit any nuisance to be committed in the Premises. 3. REPAIRS; ALTERATIONS: Tenant shall keep the Premises in good condition and repair. All damage or injury to the Premises or the Building in which the same are located, caused by the act, omission or negligence of Tenant, its agents, employees or sublessees shall be promptly repaired by Tenant, at its sole cost and expense and to the satisfaction of Landlord. "Premises" in this context includes all means of ingress and egress directly connected to the Premises. If the Tenant fails after ten days' notice to proceed with due diligence to make repairs required to be made by Tenant, the same may be made by Landlord at the expense of Tenant and the expenses thereof incurred by Landlord shall be collectible as additional rent after rendition of a bill or state- ment therefor. Tenant shall make no alterations, changes or additions in or to Premises without Landlord's prior written consent, which consent will not be unreasonably withheld. Tenant hereby indemnifies and agrees to hold Landlord free and harmless from all mechanic's liens and all other liabilities, claims and demands, including those arising from damage or injury to persons or property, arising out of any work done or materials supplied to the Premises by or at the request of the Tenant. Landlord agrees to perform reasonable remodeling of the premises as requested by Tenant prior to occupancy, which includes but shall not be limited to painting, carpeting, erection of interior walls, electric wiring and lighting. Such alterations made by Landlord shall be the property of Landlord and be surrendered at the termination of this lease. Additional alterations made by Tenant, with the consent of Landlord, shall be the sole property of Tenant and shall be removed by Tenant at the termination of this lease, unless such removal cannot be accomplished without damage to the Premises which cannot be repaired by Tenant. Upon the expiration or other termination of the term of this lease or extensions thereof, Tenant shall quit and surrender to Landlord the Premises, broom clean, in good order and original condition, ordinary wear, damage by fire, other insured casualty or damage caused by acts or negligence of Landlord, its agents or employees, excepted, and Tenant shall remove all of its property. Tenant's obligation to observe or perform this covenant shall survive the expiration or other termination of this lease. 4. SUBORDINATION: This lease is subject and subordinate to all ground or underlying leases and to all mortgages which may now or hereafter affect such leases or the real property of which the Premises are a part and to all renewals, modifications, consolidations, replacements and extensions of such such underlying leases and mortgages and to any advances made thereunder, provided that if any action is taken thereunder which materially adversely affects Tenant's rights hereunder or increases Tenant's obligations hereunder, Tenant shall have the right to terminate this Lease upon thirty (30) days prior notice. This clause shall be self - operative and no further instrument or subordination shall be required by any ground or underlying lease or by any mortgagee, affecting any lease or the real property of which the Premises are a part. In confirmation of such subordination, Tenant shall execute promptly any certificate that Landlord may request. Tenant agrees to modify this lease as may be required by any mortgagee or ground lessee of the Building provided that no such modification materially adversely affects Tenant's rights hereunder or increases Tenant's obligations hereunder. 5. INDEMNITY; FIRE INSURANCE: Landlord shall maintain standard fire and extended coverage insurance on the Building and Premises. Tenant shall indemnify and save harmless Landlord against and from all liabilities, obligations, damages, penalties, claims, costs and expenses for which Landlord shall not be reimbursed by insurance, including reasonable attorneys' fees, paid, suffered or incurred as a direct result of any breach by Tenant, its agents, or employees, of any covenant or condition of this lease, or the carelessness, negligence or improper conduct of the Tenant, Tenant's agents, or employees. Tenant's liability under this lease extends to the acts and omissions of any subtenant, and any agent, or employee of any subtenant. In case any action or proceeding is brought against Landlord by reason of any such claim, Landlord will notify Tenant in writing of such action or proceedings. Tenant shall also pay all costs, expenses, fines, penalties or damages which may be imposed upon Landlord by reason of Tenant's failure to comply with all applicable laws, ordinances and regulations, and fire insurance requirements, and if by reason of such failure the fire insurance rate shall be higher than it otherwise would be, then Tenant shall reimburse Landlord, as additional rent hereunder, for that portion of all fire insurance premiums thereafter paid by Landlord which shall have been charged because of such failure by Tenant, and shall make such reimbursement upon the first day of the month following such outlay by Landlord. In any case, Tenant shall not do or keep anything in the Premises that would increase the fire insurance rate in the Building. Landlord and Tenant agree that Tenant's contemplated use of the Premises complies with all applicable fire insurance requirements and will not result in increasing the fire insurance rate in the Building. -2- 6. FIRE OR CASUALTY; WAIVER OF SUBROGATION: If the Premises or the Building be damaged by any casualty covered by the usual form of standard fire and extended coverage policy, Landlord shall, except as provided below, repair and rebuild the same after the settlement and recovery by Landlord or insurance proceeds for such damage with reasonable diligence to substantially the condition in which the same existed immediately prior to such damage. Landlord's obligation under this Article shall in no event exceed the lesser of (a) the scope of the work done by Landlord in the original construction of the Premises or (b) the proceeds of any such insurance policy if Landlord keeps the Building and Premises insurance against loss or damage by a fire and extended coverage insurance policy to the extent of eighty percent of the reasonable value of said Building. Tenant shall be entitled to a reasonable suspension or diminution of rent payable hereunder during the time required for restoration and repair according to the portion of the Premises rendered untenantable. If the Premises or Building become untenantable for any reason and are not rendered tenantable by Landlord within thirty (30) days thereafter, Tenant may at its option, terminate this lease or any extensions thereof, immediately. Tenant understands that Landlord will not carry insurance of any kind on Tenant's furniture or furnishings or on any fixtures or equipment installed by Tenant, and that Landlord shall not be obligated to repair any damages thereto or replace the same unless such damage was caused by the negligence of Landlord, its agents or employees. Notwithstanding the foregoing, each party shall look first to any insurance in its favor before making any claim against the other party for recovery for loss or damage resulting from fire or other casualty, and to the extent that such insurance is in force and collectible and to the extent permitted by law, Landlord and Tenant each hereby releases and waives all right of recovery against the other or anyone claiming through or under each of them by way of subrogation or otherwise. The foregoing release and waiver shall be in force only if both releasors' insurance policies contain a clause providing that such a release or waiver shall not invalidate the insurance and both parties hereto agree to obtain such a policy if it can be obtained without additional premiums. 7. EMINENT DOMAIN: If the Premises or any part thereof shall be taken in condemnation or under the power of eminent domain, whether or not by compromise, agreement or settlement, or by a deed, transfer or conveyance in lieu of condemnation to an entity having the power of eminent domain, then and in that event, the term of this lease shall cease and terminate from the date of title vesting in such proceeding or settlement and Tenant shall have no claim for the value of any unexpired term of said lease except that if only an immaterial portion of the Premises is so taken so that Tenant's conduct of its business therefrom is not substan- tially hindered, then Landlord may elect for the lease to continue with an abatement of rent to compensate for the portion of the Premises so taken. 8. ASSIGNMENT, MORTGAGE: This lease is executed by the parties with the intention that Tenant will sublease the Premises to the State of Colorado for use as lottery headquarters and offices. Tenant, for itself, its successors and assigns, expressly covenants that except for sublease to the State of Colorado it shall not assign, mortgage or encumber this agreement, nor underlet, or suffer or permit the Premises or any part thereof to be used by others, without the prior written consent of Landlord in each instance, which consent will not be unreasonably withheld. If this lease be assigned, or if the Premises or any part thereof be underlet or occupied by anybody other than Tenant or the State of Colorado, Landlord may, after default by Tenant, collect rent from the assignee, under - tenant or occupant, and apply the net amount collected to the rent herein reserved, but no such assignment, underletting, occupancy or collection shall be deemed a waiver of -3- this covenant, or the acceptance of the assignee, under - tenant or occupant as Tenant, or a release of Tenant from the further performance by Tenant of covenants on the part of Tenant herein contained. The consent by Landlord to an assignment or underletting shall not in any wise be construed to relieve Tenant from obtaining the express consent in writing of Landlord to any further assignment or underletting. 9. DEFAULT: (A) If Tenant defaults in fulfilling any of the covenants of this lease including the covenants for the payment of rent, or if the Premises are not occupied or become vacant or deserted, or if the Premises are damaged by reason of negligence or carelessness of Tenant, its agents or employees or sublessees, then, in any one or more of such events, upon Landlord serving a written 30 days' notice upon Tenant specifying the nature of said default and upon the expiration of said 30 days, if Tenant shall have failed to comply with or remedy such default, or if the said default or omission complained of shall be of a nature that the same cannot be completely cured or remedied within said 30 -day period, and if Tenant shall not have diligently commenced curing such default within such 30 -day period, and shall not there- after with reasonable diligence and in good faith proceed to remedy or cure such default, then Landlord may serve a written three (3) days' notice of cancellation of this lease upon Tenant, and upon the expiration of said three (3) days, this lease and the term thereunder shall end and expire as fully and completely as if the expiration of said three (3) day period were the day herein definitely fixed for the end and the expiration of this lease and the term thereof and Tenant shall then quit and surrender the Premises to Landlord but Tenant shall remain liable as provided in paragraph 10 below. 10. REMEDIES OF LANDLORD UPON CANCELLATION: In case of any cancellation under paragraph 9 by Landlord, by summary proceedings or otherwise, the rent shall become due thereupon and be paid up to the time of such cancellation, together with such reasonable expenses as Landlord may incur for attorneys' fees, or putting the Premises in good order. 11. TERMINATION BY TENANT: Tenant may cancel this lease at any time upon sixty days' prior written notice to Landlord. In the event, however, that this lease is cancelled within the original two year term hereof, Tenant shall pay Landlord all Landlord's remodeling expenses incurred in connection with this lease, up to but not exceeding $14,000.00. 12. QUIET ENJOYMENT: Landlord covenants and agrees with Tenant that upon Tenant paying the rent and observing and performing all the terms, covenants and conditions, on Tenant's part to be observed and performed, Tenant may peaceably and quietly enjoy the Premises, subject, nevertheless, to the terms and conditions of this lease. 13. NO WAIVER: No assent or waiver, express or implied, to any breach of any one or more of the covenants, terms or conditions hereof shall be deemed or taken to be a waiver of any succeeding or other breach. 14. SERVICES: Landlord agrees to supply, at its expense, water, electricity, elevator service, heat and air conditioning during reasonable hours on usual business days (which is hereby defined to mean from 8:00 A.M. to 6:00 P.M., Mondays through Fridays, other than holidays) all as herein provided. Landlord shall not be liable for any stoppage or interruption of any of said services caused by riot, strike, labor disputes, order of governments, breakdowns, accidents, necessary repairs, voluntary compliance with energy conservation programs or other cause beyond its control. Tenant agrees to pay for all utilities and other services incurred by Tenant not specifically provided for herein to be paid by Landlord. -4- ELECTRICITY. Landlord will furnish to Tenant, through transmission facilities installed by the Landlord in the Building, electric current to be used by Tenant for lighting and normal office usage (110 volt current in quantities not to exceed that used by type- writers, desk calculators, and other business machines, such as are in common use at the date of this lease and normal fixtures and lamps used for illumination.) Tenant covenants and agrees that at all times its use of electric current shall not exceed the capacity of existing feeders to the Building or the risers or wiring installations; and Tenant may not use any electrical equipment which, in Landlord's opinion, reasonably exercised, will overload such installations or interfere with the use thereof by other tenants of the Building. Landlord shall not be liable in any way to Tenant for any failure or defect in supply or character of electric current furnished to the Premises. Landlord shall install initially all lighting tubes, lamps, bulbs and ballasts used in the premises. Thereafter Tenant shall furnish and install all replacement parts therefor and furnish and install any additional lamps, bulbs and ballasts that Tenant may require at Tenant's expense. Tenant shall pay for the cost of the installation of any meter and additional wiring that may be required by his special use and for the cost of the electricity so used. 15. SUCCESSORS AND ASSIGNS: The covenants, conditions and agreements contained in this lease shall bind and inure to the benefit of Landlord and Tenant and their respective heirs, dis- tributees, executors, administrators, successors, and except as otherwise provided in this lease, their assigns. 16. ATTORNMENT: Tenant agrees that in the event any proceed- ings are brought for the foreclosure of any mortgage to which this lease is subject and subordinate, Tenant will attorn to the Purchaser at any such foreclosure sale and will recognize such purchaser as its Landlord under this lease. 17. PREPARATION FOR OCCUPANCY AND POSSESSION: (A) The Premises shall be completed and initially prepared for Tenant's occupancy in the manner, and subject to the provisions of the schedule attached hereto. (B) The Premises shall be deemed to be Substantially Completed on the date on which Landlord's Work (as such Work is described in said schedule) in the Premises has been substantially completed notwithstanding the fact that minor or insubstantial details of construction, mechanical adjustment or decoration remain to be performed, the noncompletion of which would not materially interfere with Tenant's use of the Premises. (C) If the substantial completion of the Premises is delayed by reason of: (1) any act or omission of Tenant or any of its employees, agents or contractors, including the failure of Tenant to comply with any of its obligations under said schedule; or (2) any failure (not due to any act or omission of Landlord or any of its employees, agents or contractors) to plan or execute Tenant's work with reasonable speed and diligence; or (3) any substantial changes by Tenant in its drawings or specifications or any substantial changes or substitutions requested by Tenant, then the Premises shall be deemed Substantially Completed on the date when they would have been Substantially Completed but for such delay. (D) Landlord shall not be obligated to construct or install at its expense any improvements or facilities of any kind other than those required to be performed by Landlord pursuant to said schedule. Landlord agrees to commence and complete the construction of such improvement with reasonable diligence. M12 18. RESTRICTIVE COVENANT: Tenant covenants and agrees that no part of the Premises shall be used for any activity now or hereafter allowed by law to be conducted exclusively by commercial, industrial, or savings banks or other financial institutions licensed to accept deposits from the general public in the State of Colorado. Landlord and Tenant hereby stipulate and agree that the contemplated use of the Premises for a lottery headquarters and related uses and activities do not and will not constitute a breach of this restrictive covenant. 19. RULES AND REGULATIONS: Tenant shall comply with the rules and regulations contained herein and all reasonable rules and regulations of the Building, which will at all times be available for Tenant's inspection in Landlord's office located in the Building. Landlord shall have the right to amend or revoke such rules and regulations and to make other reasonable rules and regulations, provided the same are fairly applied and are promulgated for the general good of the Building. Nothing in this lease, however, shall be construed to impose upon Landlord any affirmative duty or obligation to enforce such rules and regulations or the terms, covenants or conditions of any other lease, as against any other tenant, and Landlord shall not be liable to Tenant for violation of the same by any other tenant. 20. ACCESS: Tenant shall permit Landlord to use and maintain and replace pipes and conduits in and through the Premises and to erect new pipes and conduits therein during such time and in such manner as Landlord and Tenant shall mutually agree. Landlord may also enter the Premises at reasonable times upon notice to Tenant and while accompanied by an authorized agent of Tenant. 21. RENEWAL OPTIONS: Upon the expiration of the original term of this lease and for five (5) years thereafter, Tenant shall have the annual option to extend this lease for additional one year terms upon the same terms and conditions as provided herein, except that annual rent shall increase upon the first such renewal by $0.78 per square foot above the rent specified for the second year of the lease term, and thereafter may be similarly renewed at an annual rental rate increased by $0.78 per square foot above the rental rate charged for the last preceding renewal. This lease shall be automatically renewed for each successive one year renewal term unless Tenant shall give written notice to Landlord at least thirty (30) days before the end of each prior term of its intention not to renew. 22. ADDITIONAL SPACE: Should additional space in the sixth floor of the Building become available for occupancy during the original term of this lease or any extensions thereof, Landlord shall give Tenant written notice thereof, and for 30 days thereafter, Tenant shall have first option to lease such space, or any portion thereof, upon the same terms and conditions as provided herein, except that the rent for such additional leased space shall be at the then prevailing market rate in Pueblo, Colorado. 23. PARKING: A. Landlord agrees to provide to Tenant without additional charge, 40 automobile parking spaces in connection with Tenant's use of the Premises during the effective period of this lease. At least fifteen of such spaces shall be provided in Landlord's parking lot immediately adjacent to the Building and the remaining parking spaces shall be provided in the City of Pueblo public parking lot located at 8th and Court Streets, Pueblo, Colorado. B. Landlord may lease from the City of Pueblo, during the effective term of this leasg,�2 parking spaces in the City of Pueblo public parking lot located at 8th and Court Streets in Pueblo at a monthly rental of $13.00 per space for the first year of this lease, and for each year thereafter at an amount per space equal to rent Landlord charges its monthly parking customers for parking spaces in Landlord's parking lot adjacent to the Building. 24. BUILDING MAINTENANCE: Landlord shall be responsible for maintenance of the Building of which the Premises forms a part. Landlord shall maintain and keep in good repair common areas and facilities of the Building, including without limitation, plumbing, electrical wiring, heating and air conditioning systems, elevators, hallways, restroom facilities, sidewalks and parking lot facilities contiguous with the Building and used in conjunction therewith. 25. COMMON AREA USE: Tenant shall have nonexclusive use in conjunction with Landlord and other Tenants of the Building of the common areas of the Building providing access to the Premises, including without limitation, sidewalks, elevators, entrance ways into the Building, hallways, and sixth floor restroom facilities. 26. LANDLORD'S INDEMNITY: Landlord shall indemnify and save harmless Tenant from and against all liabilities, obligations, damages, penalties, claims, costs and expenses for which Tenant shall not be reimbursed by insurance, including reasonable attorneys' fees paid, suffered or incurred as a result of any breach by Landlord, its agents or employees of any covenant or condition of this lease, or the carelessness, negligence or improper conduct of the Landlord or its agents or employees. In case any such action or proceeding is brought against Tenant, Tenant will notify Landlord in writing of such action or proceedings. 27. ATTORNEY FEES: If suit is filed to enforce any provision of this lease by one party against the other party hereto, the prevailing party shall be entitled to an award of attorney fees and costs incurred in said suit in addition to any other judgment for damages or other relief such party shall obtain in its favor. 28. Landlord shall provide and furnish janitorial services for the Premises and each employee from the janitorial service must be bonded under a fidelity bond for $10,000, and a copy of the bond to be furnished to the Tenant. 29. SEVERABILITY: If any term or provision of this lease or the application thereof to any person or circumstance shall to any extent, be invalid or unenforceable, the remainder of this lease, or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby and each term and provision of this lease shall be valid and enforced to the fullest extent provided by law. IN WITNESS WHEREOF, the parties hereto have executed this lease, as of the date first above written. City of Pueblo Pueblo Partners, Ltd. DBA: UNITED BANK BUILDING B E� G GPI B Y � Y President of the City Council Approved as to Form: City Attorney Attes, 6Z� amity le k -7- RULES AND REGULATIONS I. Tenant shall not place a load upon any floor of the Premises exceeding the floor load per square foot which it was designed to carry and which is allowed by law. Landlord reserves the right to prescribe the weight and position of all safes, business machines and mechanical equipment. Such installations shall be placed and maintained by Tenant, at Tenant's expense, in settings sufficient, in Landlord's judgement, to absorb and prevent vibration and annoyance. 2. Whenever the air- conditioning system is in operation, Tenant shall cause the drapes in the Premises to be drawn closed depending upon the position of the sun. Tenant shall have no right to move internal partitions so as to obstruct or change materially the flow of air in the Premises. If Landlord consents to the moving of internal partitions, Landlord shall be excused from its obligation to supply air- conditioning or ventilation meeting the standard of this lease, and Landlord may require Tenant to restore such partitions upon surrender of the Premises. 3. Landlord shall maintain a directory board in the lobby of the Building and shall list thereon the names that Tenant may request from time to time during the term of this lease, provided that Tenant's listing does not exceed 5 lines. Landlord shall have the right to impose a reasonable charge for any initial or additional directory listings. 4. Tenant shall-irrsiah- draperies haring finings apprwed-by un -t exterior- vindows, Tenant shall not alter any interior lighting visible from outside the Building without Landlord's prior written approval. 5. Tenant shall not use or permit the use of the Premises in such a manner as to impair the character or dignity of the Building or impose any additional burden upon Landlord in the operation of the Building. 6. Tenant shall not list or otherwise publicly advertise for subletting or assigning all or any part of the Premises at a rental rate less than the fixed annual rental rate and additional rate then payable hereunder for such space, but nothing herein contained shall be deemed the Landlord's consent to any assignment or subletting. 7. Tenant shall not expose any sign, advertisement, illumination or projection or lettering in or out of the windows or exteriors, or from the Building, or upon or in any place, except as shall be approved and permitted in writing by the Landlord. 8. Tenant shall not move any safe, heavy machinery, equipment, bulky matter or fixtures into or out of the Building without Landlord's prior written consent. If such safe, machinery, equipment, bulky matter or fixtures require special handling, all work in connection therewith shall comply with all laws and regulations applicable thereto and shall be done during such hours as Landlord may designate. 9. Landlord shall furnish floor coverings, paint, exterior draperies and all standard electrical outlets. In the event the tenant needs additional electrical service or additional heating and cooling for a computer room, tenant shall provide additional amount at its cost. APPROVED this 20th day of September , 19 82 PUEBLO PARTNERS, LTD. BY: awm CITY OF PUEBLO BY: d'/ ��� A • 1G� LEASE THIS LEASE made and entered into this t z�r day of � rt TEiv�- � 1982, by and between the CITY OF PUEBLO, COLORADO, for itself and its assigns, hereinafter called the LESSEE, and THE BELMONT VILLA (a partnership), hereinafter called the LESSOR. WITNESSETH: Lessor and Lessee for themselves and their successors and assigns in consideration of the mutual promises herein contained agree as follows: 1. The Lessor does hereby lease to Lessee and Lessee does hereby take and hire from Lessor for a monthly rental of $1,600.00, subject to,increase as provided in paragraph 14 hereof, the following described premises: 4,959 square feet of net usable office space on the west portion of the second floor (herein Premises) of a two -story building located at 701 Court Street, Pueblo, Colorado (herein Building), to be used exclusively for a data entry center or office space. 2. TO HAVE AND TO HOLD the Leased Premises with their appur- tenances for the term of ten (10) years beginning October 1, 1982 and ending September 30, 1992. 3. The Lessee shall have the right to sublease the Premises to the State of Colorado, however, Lessee shall not otherwise assign this lease or sublet the Premises without prior written consent of Lessor, which consent will not be unreasonably withheld. 4. Lessor shall furnish and supply water, electricity, elevator, service, heat, controlled humidity, and air conditioning. The Premises shall be completed and prepared for occupancy by the State of Colorado as Lessee's sublessee on or before October 1, 1982 in the manner and in conformity with the Data Entry Center Specifications consisting of three pages attached hereto and incorporated herein. Lessee shall be responsible for the con- struction and installation of the specified eight (8) movable hexagonal work station islands including the six (6) electrical outlets for each hexagonal work station. Lessor shall be responsible for the installation and construction of the remaining specified improvements and facilities. Lessor shall not be responsible or obligated to construct or install any other improvements or facilities other than those specified in this Lease. 5. The Lessee shall have the right to make alterations, attach fixtures and erect additions, structures, or signs, in or upon the Premises (provided such alterations, additions, structures, or signs shall not be detrimental to or inconsistent with the rights granted to other tenants in the Building); which fixtures, additions or structures including the hexagonal work stations so placed in or upon or attached to the Premises shall be and remain the property of the Lessee and may be removed therefrom by the Lessee prior to or within 15 days after the termination of this lease, and the Lessee, if required by the Lessor, shall restore the Premises to the same condition as that existing at the time of entering upon the same under this lease, reasonable and ordinary wear and tear, and damages by the elements and by circumstances over which the Lessee has no control, excepted; provided, however, that if the Lessor requires such restoration, the Lessor shall give written notice thereof to the Lessee 30 days before the termination of the lease. 6. The Lessor shall, unless herein specified to the contrary, maintain the Premises in reasonable repair and tenantable condition during the continuance of this lease, except in case of damage arising from the act or the negligence of the Lessee's agents or employees. For the purpose of so maintaining the Premises, the Lessor reserves the right at reasonable times to enter and inspect the Premises while accompanied by a representative of Lessee and to make any necessary repairs thereto. 7. Lessor shall during the effective period of this lease procure and keep in force standard fire and extended insurance on the Building and Premises. If the Premises be destroyed by fire or other casualty, this lease shall immediately terminate. In case of partial destruction or damage, so as to render the Premises untenantable, rent shall abate until the Premises again -2- become tenantable and either party may terminate the lease by giving written notice to the other within twenty (20) days thereafter, and if so terminated no rent shall accrue to the Lessor after such partial destruction or damage. 8. Financial obligations of the State of Colorado as Lessee's sublessee and the Lessee after the current fiscal year are contingent upon funds for that purpose being appropriated, budgeted and otherwise made available, and this lease is subject to such a contingency. 9. Lessor warrants and represents that it is the owner of the Premises and that during the term of this lease Lessor covenants and agrees to warrant and defend Lessee in the quiet and peaceable enjoyment and possession of the Leased Premises. 10. Lessor will prior to October 1, 1982 do and perform the following to the satisfaction of Lessee: (a) partition the Premises as needed and paint interior walls; (b) make available required air conditioning and humidity control for the computer equipment and heat and air conditioning for the balance of the Premises; (c) install security lighting in parking lots surrounding the Building; (d) remodel first floor entry inside Building for access to elevator by lessees of second floor. If additional space on second floor is leased to another tenant, Lessor will provide mutually acceptable corridor or other access from elevator to the west portion of the Building to be leased which will be separated from other lessees. All access to the Premises will be secure from use by others; and (e) provide a back door with security entrance into the Premises. 11. Lessor and Lessee do hereby mutually release each other, their agents and employees, from any liability for loss or damage to each other's property whether or not caused by the negligence or fault of the other, its agents or employees. This release shall apply only to the extent that such loss or damage to the other's property is covered by insurance and only if this release will not affect the right to recover under such insurance. -3- 12. If the Sublease for the Premises between the Lessee and the State of Colorado for the use of the Premises as a data entry center is terminated for any reason after September 1, 1984, Lessee shall have the right to terminate this lease upon sixty (60) days prior written notice to Lessor specifying the date of termination. 13. Lessee shall reimburse Lessor for utilities, gas and water based on a pro -rata share of utilities consumed, computed by dividing 4,959 by the total gross square footage of the Building and multi- plying that result by the utility bill after excluding all equipment and service call charges. Lessee reserves the right to audit utility bills to ensure they are correct and the pro -rata share computed properly. Such reimbursement shall be paid monthly within ten (10) days after receipt of statement therefor. All charges for electrical services used or consumed by Lessee shall be separately metered and paid by Lessee. Lessee shall furnish and provide its own janitorial services for the Premises. 14. The monthly rent to be paid by Lessee under paragraph 1 hereof shall be increased by the following percentages: 6% at the end of the third year, sixth year, and ninth year. 15. Lessor shall be responsible for maintenance of the Building and shall maintain and keep in reasonable good repair common areas and facilities of the Building including without limitation plumbing, electrical wiring, heating and air conditioning systems, elevator, hallways, restroom facilities, employee lounge, sidewalks, Building entrance ways, fire escapes, and parking areas used in connection with the Building. 16. Lessee and Lessee's sublessee and its employees shall have nonexclusive use in conjunction with other lessees of the Building and their employees of the following: common areas, facilities providing access to the Premises, restroom facilities, employee lounge, and parking areas. Lessor warrants and agrees that the use of parking areas adjacent to and used in connection with the Building will be limited and restricted to lessees of the Building and their employees. MEM 17. All notices or communications concerning this lease by Lessor shall be addressed to City Manager, City of Pueblo, 1 City Hall Place, Pueblo, Colorado, 81003 and by Lessee to The Belmont Villa, P.O. Box 11301, Pueblo, Colorado, 81001. LESSOR: The Belmont Villa, a partnership - % j L ...a - - , a 4rt W. By Partner LESSEE: City of Pueblo, Colorado B y ZZ6�Lu a t President of Attest:! / - � Approved as to City Counci rm: City Attorne -5- �a - DEPARTMENT OR AGENCY NUMBER 220400 CONTRACT ROUTING NUMBER GGCC -701 �_� ('/3 _ y K SUBLEASE THIS SUBLEASE made and entered into this day of 1982, by and between the CITY OF PUEBLO, COLORADO, whose address is 1 City Hall Place, Pueblo, Colorado, for itself and its assigns, hereinafter called the SUBLESSOR, and the STATE OF COLORADO, for the use and benefit of the DEPARTMENT OF ADMINISTRATION, hereinafter called the SUBLESSEE, WITNESSETH: Sublessor and Sublessee, for themselves and their successors and assigns, in consideration of the mutual promises herein con- tained, agree as follows: 1. Sublessor does hereby sublease to Sublessee and Sublessee does hereby take and hire from Sublessor 4,949 square feet of net usable office space on the west portion of the second floor (herein Premises) of a two -story building located at 701 Court Street, Pueblo, Colorado (herein Building). 2. The term of this sublease shall be ten (10) years from October 1, 1982 to September 30, 1992 subject to exceptions herein provided and Sublessee shall use the leased Premises exclusively for a data entry center and offices associated therewith. 3. This sublease and Sublessee's rights hereunder are subject and subordinate to the Lease Agreement between Sublessor and The Belmont Villa, a partnership, dated September 1, 1982, a copy of which is attached hereto as Exhibit "A" and incorporated herein (herein Lease). Sublessee agrees to be bound by and to keep and perform all covenants and conditions contained in the Lease on the part of the Lessee therein to be kept and performed including reimbursement of Lessor for utilities, but excluding the payment of rent and construction of eight (8) movable hexagonal work stations which shall remain the obligation of Sublessor. This sublease shall terminate simultaneously with the termination of the Lease. - 4. Sublessee shall not assign this sublease in whole or in part and shall not sublet any part of the Premises without the written consent of Sublessor, which consent will not be unreasonably withheld. 5. If Sublessee does not maintain a staffing level of at least 45.0 full time equivalent employees at such data entry center in the Premises after September 1983, Sublessor shall have the right to terminate this sublease upon ninety (90) days prior written notice to Sublessee specifying the date of termination. 6. Financial obligations of Sublessee payable after the current fiscal year are contingent upon funds for that purpose being appro- priated, budgeted or otherwise made available. In the event the State legislature by legislative act directs that the State data entry function be returned to the City of Denver, this sublease may be cancelled by the Sublessee, or, with the Sublessor's consent, the Premises may be used by another State agency. 7. If Sublessee shall default in the performance of any covenant or agreement on its part to be performed hereunder, Sublessor shall have the right to terminate this sublease upon 30 days written notice to Sublessee if Sublessee shall fail to cure or correct such default within 30 days after Sublessor gives written notice to Sublessee specifying such default and demanding that same be curred or corrected. 8. Sublessee shall keep the Premises in reasonable good repair and condition, shall provide its own janitorial services, and shall make no alterations thereto without consent of the Sublessor, which consent will not be unreasonably withheld. r DEPARTMENT OR AGENCY NUMBER 220400 CONTRACT ROUTING NUMBER GGCC -701 9. If funds are so appropriated by the State legislature for such purpose, Sublessee will reimburse Sublessor for its costs for the construction and installation of the eight (8) movable hexagonal work stations and electrical outlets required to be constructed and installed by Sublessor pursuant to paragraph 4 of the Lease. 10. Sublessor shall not be responsible for any defect or change of condition in the Premises or Building, nor for any damage thereto, nor to any person, nor to goods or equipment contained therein due to any cause whatsoever except the act or negligence of Sublessor, its officers, agents and employees. Sublessee will maintain in full force and effect a general liability insurance policy, naming Sublessor as an additional insured, providing coverage in such amounts as are mutually agreed upon and protecting from any and all claims, demands, and actions arising in connection with Sub - lessee's use of said Premises or the use thereof by any person occupying said Premises during the effective period of this sublease, by reason of the negligence or carelessness of Sublessee or its agents, or employees. A Certificate verifying such insurance shall be provided Sublessor along with notices of any cancellation or renewal thereof. 11. The laws of the State of Colorado and rules and regulations issued pursuant thereto shall be applied in the interpretation, execution and enforcement of this contract. Any provision of this contract whether or not incorporated herein by reference which provides for arbitration by any extra - judicial body or person or which is otherwise in conflict with said laws, rules and regulations shall be considered null and void. Nothing contained in any pro- vision incorporated herein by reference which purports to negate this or any other special provision in whole or in part shall be valid or enforceable or available in any action at law whether by way of complaint, defense or otherwise. Any provision rendered null and void by the operation of this provision will not invalidate the remainder of this contract to the extent that the contract is capable of execution. 12. If the Premises shall be taken by right of eminent domain, in whole or in part, for public purposes, then this sublease, at the option of either party, shall forthwith cease and terminate. 13. In the event the Premises are rendered untenantable or unfit for Sublessee's purposes by fire or other casualty this sublease will immediately terminate. In the event the Premises are damaged by fire or other casualty so that there is partial destruction of such Premises or such damage as to render the Premises partially untenantable or partially unfit for Sublessee's purposes, either party may, within fifteen (15) days of such occurrence, terminate this sublease by giving written notice to the other party. Such termination shall be effective not less than 45 days from the date of mailing of the notice. 14. The signatories hereto aver that they are familiar with 18 -8 -301, et seq., (Bribery and Corrupt Influences) and 18 -8 -401, et seq., (Abuse of Public Office), C.R.S. 1973, as amended, and that no violation of such provisions is present. 15. The signatories hereby aver that no State employee has any personal beneficial interest in the property described herein. 16. This sublease shall not be deemed valid until it shall have been approved by the Controller or such assistant as he may designate. -2- r DEPARTMENT OR AGENCY NUMBER 220400 CONTRACT ROUTING NUMBER GGCC -701 17. All notices or communications concerning,this sublease by Sublessor shall be addressed to Executive Director, Department of Administration, 1525 Sherman Street, 7th Floor, Denver, Colorado, 80203, and by Sublessee to City Manager, City of Pueblo, 1 City Hall Place, Pueblo, Colorado, 81003. Executed the day and year first above written. ATTEST: SUBLESSOR: CITY OF PUEBLO, COLORADO City CjerlCy i BY 4� President of the City Council SUBLESSEE: STATE OF COLORADO, acting by and through Department of Adminiration and for Richar i D. Lamm, Governor By APPROVED DIVISION OF ACCOUNTS AND CONTROL ` A, Controller JAMES A . ST R UP ATTORNEY GENERAL, STATE OF COLORADO J. D. !MacF ARLANE ve STATE BUILDING DIVISION B D' ector By JEWEL ssis ant Solid or 7or al n ral Leyal Servrc -3- Form AC -01 -75 LEASE AGRUMENT THIS LEASE AGREEMENT made this _2Ott_ day of --�S ___ —_-__ , 19.82:_=, by and between the- City of - Pueb1� 0 ---- __--- _------- _ —_ - -- whose address or principal place of business is ___I _Ca Jy�Ja_l_1__.ace,�?taebl o, _Col orado and for _ - ___ heirs, executors, administrators, successors, and assigns, hereinafter called the Lessor, and THE STATE OF COLORADO, acting by and through: ____ the_Departmen—t -.- f_.ReY_enu.e - -i - -- -- - - -__- - - - - -- --- - - - - -_ -- -, hereinafter called the Lessee. WHEREAS, authority exists in the Law and Funds lww hcen hndgeled, appropriated and otherwise made nvoilable and a sufficient unencumhered h:dance then-of remains av ;61:ihir for p:ryment in Fund Numbvr_51 G/L Amount Numhrr 5902X , Contract Uncmnhrazace Nnmhrr and WITNESSETH: The parties hereto, for the considerations hereinafter mentioned, covenant and agree as follows: 1. Lessor hereby leases and demises unto Lessee the premises known and described as follows: Storage space for the Lottery Division on the ground floor of the City of Pueblo Maintenance Shop compound at 211 E. "D" Street, Pueblo, Colorado r containing Eleven Thousand 'Seven hundred Fifty- ei_ght _ _. (11, 758___) square feet of net usable floor area; the leased premises being as shown on the plat hereto attached and made a part hereof, marked "Exhibit A ". TO HAVE AND TO HOLD the same, together with till appurtenances, unto Lessee, for the term beginning October 1 , 1912** and ending September 30 _________ -_ , 1987 __ , at and for a rental for the full term at an annual rental of eight thou sand_- ei hun f- — Dollars computed at the rate of _-one _ an_d_.77 /1OO_____ __- -- Dollars ($ +_ . 75_) per square foot, payable in monthly installments of __._sev_e hundred-thirty- seven -an 5- 0f1OD— Dollars (s 737 ), to be used and occupied as - -storage. -sp ace _ - _--- -_ -_ -_ space. Payment shall be made on the first of each month during the term hereof, at the office of Lessor, 1_ City Hall .Pl ace , or at such place as Lessor from time to time designates in writing. Pueblo, Colorado 81003 consideration, the following: 4. Lessor shall, unless herein specified to the contrary, maintain the said premises in good repair and in tenantable condition during the term of this lease, except in the event of damage arising from an act or the negligence of Lessee, its agents or employees. Lessor shall have the right to enter the premises at reasonable times for the purpose of making necessary inspections and repairs or maintenance. 5. Lessor warrants and represents himself to be the owner of, or the authorized representative or agent of the owner of, the leased premises in the form and manner as stated herein; and during the term of this lease Agreement covenants and agrees to warrant and defend Lessee in the quiet, peaceable enjoyment and possession of the leased premises. In the event of any dispute regarding lessor's ownership Lessor shall immediately, upon request from and at no cost to Lessee, furnish proof thereof by delivering to lessee an "Ownership and Encumbrance Letter" issued by a properly qualified title insurance company. 6. Iessee shall not assign this lease and shall not sublet the demised premiscsXElipl�O�dlC�7ttIDSC *Kmxhe#kKt14aU =kpwptKK and will not permit the use of said premises to any one, other than Lessee,AK- without the prior written consent of lessor. 1. The laws of the State of Colorado and rules and regulations issued pursuant thereto shall be applied in the interpretation, execution and enforcement of this contract. Any provision of this contract whether or not incorporated herein by reference which provides for arbitration by any extra - judicial body or person or which is otherwise in conflict with said laws, rules and regulations shall be considered null and void. Nothing contained in any provision incorporated herein by reference which purports to negate this or any other special provision in whole or in part shall be valid or enforceable or available in any action at law whether by way of complaint, defense or otherwise. Any provision rendered null and void by the operation of this provision will not invalidate the remainder of this contract to the extent that the contract is capable of execution. *See addendum A, attached hereto and made a part of this agreement. y � * *See addendum B, attached hereto and made a part of this agreement. W"J Page 1 of pages 15. The parties hereto understand and agree this contract is contingent upon continuing availability of funds as provided in Special Provision eleven (11) hereafter, and that the State is prohibited by law from making fiscal carnitments beyond the term of its current fiscal period. This is defined as "Fiscal Funding." Therefore, State may terminate this contract as provided in the following paragraph. 15a. State Contracts to lease the office herein described and has reason to believe that sufficient funds will be available for the full term of the lease contract. Where, for reasons beyond State's control, its funding entity does not allocate funds for any fiscal period beyond the one in which this lease contract is entered into, State has exhausted all efforts to obtain funds legally available for future fiscal periods and such failure to obtain funds does not result from any act or failure to act on the part of State, State will not be obligated to make the payments remaining beyond State's then current fiscal period. In such event, State shall notify Lessor of such nonallocation of funds by sending written notice thereof to the Lessor forty -five (45) days prior to the effective date of termination. 16. The State and Lessor understand and intend that the obligation of the State to pay the monthly lease charge hereunder constitutes a current expense of the State payable exclusively from the Department of Revenue's funds and shall not in any way be construed to be a general obligation indebtedness of the State or any agency or department thereof within the meaning of any provision of Sections 1, 2, 3, 4, or 5 of Article XI of the Colorado Constitution or any other Constitutional or statutory limitation or requirement applicable to the State concerning the creation of indebtedness. Neither the State, nor the Lessor on its behal.f, has pledged the full faith and credit of the State or any agency contract shall not directly or contingently obligate the State or any Department or Agency thereof to apply money from, or levy or pledge any form of taxation to, the payment of the installments of lease or rent. 17. This contract, including all exhibits, supersedes-any and all prior written or oral agreements and there are no convenants, conditions or agreements between the parties except as set forth in this contract. No prior or contemporaneous addition, deletion, or other amendment hereto shall have any force or effect whatsoever unless embodied herein in writing. No subsequent novation, renewal, addition, deletion or other amendment hereto shall have any force or effect unless embodied in a written contract executed and approved pursuant to the State Fiscal Rules. These Fiscal Rules, and the rules and regulations referred to in Special Provision 7, page 1 of 3 of this contract, are the State of Colorado Department of Admini , 3tration, Division of Accounts and Control Fiscal Rules published July 1, 1974. In the event of any conflict, variance or disagreement the terms and provisions of this State contract (AC- 01 -75) shall supersede, govern and control those of any addenda, exhibits, or attachments. 18. The State represents that it is exempt from any Federal, State and /or Local tax assessments, and, therefore, no taxes shall be charged to the State of Colorado. If tax exemption is unapplicable or should change, the State agrees to pay all applicable taxes. Page 2 of 3 pages • w r Form AC -01 -75 Revised 2 -80 8. EMINENT DOMAIN, TERMINATION OF LEASE. If the leased premises shall betaken by right on eminent domain, in whole or in part, for public purposes, then this lease, at the option of either party, shall forthwith cease and terminate and the current rent shall be properly apportioned to the date of such taking; and in such event the entire damages which may be awarded for such taking shall be apportioned between Lessor and Lessee, as their interests appear. , 9. In the event the leased premises are rendered untenantable or unfit for Lessee's purposes by fire or other casualty this lease will immediately terminate and no rent shall accrue to Lessor from the date of such fire or casualty. In the event the leased premises are damaged by fire or other casualty so that there is partial destruction of such premises or such damage as to render the leased premises partially untenantable or partially unfit for Lessee's purposes, either party may, within five (5) days of such occurrence, terminate this lease by giving written notice to the other party. Such termination shall be effective not less than fifteen (15) days from the date of mailing of the notice. Rent shall be apportioned to the effective date of termination. 10. This Lease Agreement shall be binding upon and inure to the benefit of the partners, heirs, executors, administrators, successors and assigns of the respective parties hereto. 11. Financial obligations of the state of Colorado payable after current fiscal year are contingent on funds for that purpose being appropriated, budgeted and otherwise made available. 12. The signatories aver that to their knowledge, no state employee has any personal or beneficial interest whatsoever in the service or property described herein. 13. The signatories hereto aver that they are familiar with 18 -8 -301, et seq., (Bribery and Corrupt Influences) and 18- 8-401, et seq., (Abuse of Public Office), C.R.S. 1973, as amended, and that no violation of such provisions is present. 14. This contract shall not be deemed valid until it shall have been approved b the State Controller or such assistant as he ma desig nate. Refer to provisions 15, 15a, 16, 1� and 18 attached hereto ana mace a part of this agreement. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day first above written. LESSOR: CITY OF PUEBLO Title President, City Council Social Security Number or Employer ID APPROVED: DEP T OF ADMI ISTR N By Director S k NE WOOD Rate Buildings Division STA ATTORNEY GENERAL By fix, , I , , - State Controller JAI NrtS A. S ROUP JR. LESSEE: STATE OF COLORADO, Acting by and through Department of Revenue and for RIQiA D. LAMM, GOVERNOR By L,,yca._. Alan Friedman, Deputy Director, for the Execgtive Director General Page 3 of 3 pages ADDENDUM A 1. During the effective period of this Lease Agreement, Lessor shall make available to Lessee for storage use in conjunction with its lottery activities at Pueblo, Colorado, without charge except utilities, paid at actual cost per month up to the maximum annual payment of $8,850.00 as noted in pro- vision one(1), approximatelyll,758 square feet of Storage Space on the ground floor of the City of Pueblo Maintenance Shop Compound at 211 E. "D" Street, Pueblo, Colorado. Lessor shall perform reasonable remodeling necessary to secure the leased premises including closure of truck doors with blocks . installation of a fire-sprinkler system, interior lighting, small office space and restroom. Lessee shall monthly re- imburse Lessor the actual costs of utilities for such Storage Space within 15 days after billing therefor. Lessee shall furnish its own janitorial services. 2. If Lessee's actual lottery "headquarters" functions are not continuously located at Pueblo, Colorado, Lessor shall have the right to terminate this agreement upon ninety(90) days prior written notice to Lessee. 3. If Lessee shall default in the performance of any covenant or agreement on its part to be performed hereunder, Lessor shall have the right to terminate this Lease Agreement upon three days written notice to Lessee if Lessee shall fail to cure or correct such default within 30 days after Lessor gives written notice to Lessee specifying such default and demandings that same be cured or corrected. 4. Lessee shall not cause waste to occur on the leased premises and shall make no alterations thereto without consent of th� Lessor, which consent shall not be unreasonably withheld. r t-ING MA( l 1VC ) , eMA (. Ge_" e2. 10 WVTCrFV 5. The State shall be liable only as stated in CRS 1973 24 -10 -101 et.seq. 6. Lessor shall not be responsible for any defect or change of condition in the leased premises, nor for any damage thereto nor to any person, nor to goods or equipment contained therein due to any cause whatsoever except the negligence of Lessor, its officers or agents. *. w ADDENDUM B 1. This lease agreement is being submitted past the beginning term date due to revisions requested by the Attorney General's office, delays in negotiating these changes with the City of Pueblo, and difficulties processing the lease agreement within the administration of the Lottery.