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HomeMy WebLinkAbout5368RESOLUTION NO. 5368 A RESOLUTION APPROVING A LEASE AGREEMENT BETWEEN THE CITY OF PUEBLO, A MUNICIPAL CORPORATION AND PUEBLO PARTNERS LTD. DBA UNITED BANK BUILDING FOR AN ADDITIONAL 1,523 SQUARE FEET OF SPACE AND SUBLEASE THEREOF WITH THE STATE OF COLORADO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PUEBLO, COLORADO, that: Section 1. The Lease Agreement between the City of Pueblo, a Municipal Corporation and Pueblo Partners, Ltd. DBA United Bank Building dated April 9, 1984 and Lease Addendum #1 attached thereto relating to the lease of an additional 1,523 square feet of floor space in the United Bank Building, Pueblo, Colorado, to be subleased to the State of Colorado acting by and through the Department of Revenue, at no cost to the City of Pueblo, the original of which is on file with the City Clerk, is hereby approved. SECTION 2. The President of the City Council is hereby authorized and directed to execute said Lease Agreement for and on behalf of the City and the City Clerk is directed to affix the seal of the City thereto and attest same. INTRODUCED April 9, 1984 By ALLYN MIDDELKAMP Councilman ATTEST: i APPROVED: lCity Clerk President Of the City Council AGREEMENT OF LEASE AGREEMENT OF LEASE, made as of this y gel, � /dv da of 198 , between Pueblo Partners, Ltd., DBA: United Bank Buildin a Texas Par nership having its principal office at 5307 East Mockingbird 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 1,523 square feet on the sixth floor to be available for occupancy at the commencement of this lease, as hereinafter described on said floor ( "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 eighteen (18) months commencing April 1, 1984 thru September 30, 1984 at an annual rate of $8.50 per square foot and on October 1, 1984 thru September 30, 1985 increasing to an annual rate of $9.35 per square foot, which Tenant agrees to pay in lawful money of the United States in equal monthly installments in advance without notice 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. If Tenant shall fail to pay the rental as provided herein within five days of due date as stipulated herein, Tenant agrees to pay an additional sum in an amount equal to 20 of the monthly rental (but not less than $25.00) for each monthly rental payment so in default to defray the additional bookkeeping and collection costs, in addition to the pay- ment of any other costs incurred by Landlord as provided herein. 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 wort, 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. lWa 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 b 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 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 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 thereafter 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 there- under 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 lO below." 10. REMEDIES OF LANDLORD UPON CANCELLATION: In cane of any .cancellation`under.paragraph 9 by Landlord, by summary pr oceedings or otherwise,'the rent shall become due thereupon and be paid up to -the time of cancellation, due and within 30 days, 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 twelve'(12) months of occupancy, Tenant shall pay Landlord all Landlord's remodeling expenses incurried in connection with this lease, up to but not exceeding $ 6,500.00. 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. MEM f i 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. -5- 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 (09- 30 -85) 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 (First year option period corrmlences 10 -1 -85) upon the same terms and conditions as provided herein, except that annual rent shall increase upon the first such renewal by $0.85 per square foot above annual rent rate at date of renewal option, and thereafter may be similarly renewed at an annual rental rate increased by $0.85 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. A. agrees to provide to Tenant without ad onal r charge, 40 automobile parking spaces in connection with ant's use of the Premises during the effective period o is lease. At least fifteen of such spaces shall be pro ed in out parking lot immediately adjEiaourt th B ilding and the remaining parking spaces shall be proe City of Pueblo public 0 J� parking lot located at 8th Streets, Pueblo, Colorado. B. Landl-erfa may lease from the City of Pueblo, during the effecti erm of this leasW,�2 parking spaces in the City of Puebl lic parking lot located at 8th and Court Streets in pu __�_ at a menthly rental of ."-3-00 per spaee for the first year LJ ) 1k\ r- thereafter at an-a e r -s-p ace y par ing customers for r3c ing- 4� }�a�ja: ° mot -te- the - $wilding -r�1 EAE l - TlAt 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 7 By ;�-; Ve'l President o t e City Council Approved as to Form: City Attorn Attest: Tit 'Clerk Pueblo Partners, Ltd. DBA: UNITED BANK BUILDING By -7- RULES AND REGULATIONS 1. 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 1 lines. Landlord shall have the right to impose a reasonable charge for any initial or additional directory listings. 4. Tenant shall install draperies having exterior linings approved by Landlord on all exterior windows, and 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 an amount not to exceed $9.00 per square foot (based on area equal to 1,523 square feet). In the event tenant needs additional electrical service, special buildout or additional heating and cooling for a computer room, tenant shall provide additional amount at its cost. 10. In conjunction with computer usage and /or any other electrical charges other than that of normal tenant use, tenant shall be responsible for electrical charges of which have been determined through that of Southern Colorado Power, 115 West 2nd Street, Pueblo, Colorado 81002, in the amount of $260.64 per month. If KWH is greater than that determined from current month, the monthly rate will be adjusted accordingly. APPROVED this day of PUEBLO PARTNERS, LTD. BY: CITY OF PUEBLO BY: LEASE ADDENDUM NO. 1 This Lease Addendum No. 1 entered into the day of January, 1983 between Pueblo Partners, Ltd., DBA United Bank Building, a Texas Partnership (herein "Landlord "), and the City of Pueblo, Colorado (herein "Tenant "), Witnesseth: Whereas, Landlord and Tenant entered into an Agreement of Lease dated September 20, 1982 for space in the United Bank Building, 8th and Main Streets, Pueblo (herein "Agreement "), and Whereas, Landlord and Tenant are desirous of modifying certain provisions of the Agreement. Now, Therefore, Landlord and Tenant agree as follows: 1. Notwithstanding paragraph 15 of the Agreement, Tenant's sublessee, the State of Colorado, shall be bound by and to keep and perform all covenants and conditions contained in the Agree- ment on the part of Tenant to be kept and performed except for the following: a. Paragraph 3, "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 the 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." b. All of Paragraph 7. c. All of Paragraph 27. d. Payment of rent which shall remain the obligation of the Tenant. e. Indemnity under Paragraph 5 only up to the limits of liability set forth in the Colorado Governmental Immunity Act. 2. This Lease Addendum is not nor shall it be construed to be a release or waiver of any covenant or obligation of the Agreement to be performed by Tenant. Executed in Pueblo, Colorado, the day and year above written. CITY OF PUEBLO Y President of he ,ity Council PUEBLO PARTNERS, LTD. DBA: UNITED BANK BUILDING By �f • IV • • April 6, 1984 Thomas E. Jagger Attorney at Law Thatcher Building Pueblo, CO 81003 Dear Tom: This is to acknowledge the Colorado Lottery's intent to obtain 1,525 square feet of space on the sixth floor of the United Bank Building. The Lottery intends to, under the agreement to sublease and in conformity with the "Agreement of Lease" between the City of Pueblo and Pueblo Partners, Ltd., reimburse the City of Pueblo for the full cost of this additional space. The Colorado Lottery intends to utilize the space as of April 1, 1984, and reimburse the City of Pueblo from that date. Accordingly, we have initiated a contract amendment with the City of Pueblo to effect this intent. If you have questions, please call. Sincerely, Timothy J. Smith Deputy Director bjm cc: Debbie Springle PUEBLO 546 -2400 • DENVER 832 -6242 • FORT COLLINS 223 -9264 • GRAND JUNCTION 245 -4162