Loading...
HomeMy WebLinkAbout54061 � RESOLUTION NO. 5406 A RESOLUTION APPROVING A LEASE ADDENDUM DATED JUNE 25, 1984 BETWEEN PUEBLO, A MUNICIPAL CORPORATION AND FLOWER AVIATION, INC., AND AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL TO EXECUTE SAME. BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, COLORADO, that: SECTION 1. The Lease Addendum dated June 25, 1984, a copy of which is attached hereto and made a part hereof by reference, by and between Pueblo, a Municipal corporation, and Flower Aviation, Inc. relating to the lease of Additional Property, having been approved as to form by the City Attorney, is hereby approved. SECTION 2. The President of the City Council is hereby authorized to execute the Lease Addendum for and on behalf of Pueblo, a Municipal corporation, and the City Clerk is directed to affix the seal of the City thereto and attest same. CFrmTnN I All net proceeds derived from the Lease Addendum will be used for the operation, maintenance and improvement of the Pueblo Memorial Airport. INTRODUCED: June 25, 1984 ATTEST: By DOUGLAS L. RING Councilman APPROVED: President of th` City Council LEASE ADDENDUM ! - THIS LEASE ADDENDUM entered into the 25th day of June, 1984 by and between Pueblo, a Municipal corporation (herein "City ") and Flower Aviation a Colorado�orporation (herein "Lessee ") , WITNESSETH: WHEREAS, City and Lessee entered into a Pueblo Memorial Airport Operating Agreement And Land Lease dated September 12, 1983 for Property therein described (herein "Lease of September 12, 1983 "), and WHEREAS, the term of the Lease of September 12, 1983 is twenty (20) years from April 1, 1986 to March 31, 2006, and WHEREAS, Lessee desires that Additional Property be included within the Property described in the Lease of September 12, 1983 and the term of the Lease of September 12, 1983 for the Additional Property commence July 1, 1984; NOW, THEREFORE, in consideration of the foregoing and mutual promises herein contained City and Lessee agree as follows: 1. City does hereby lease to Lessee and Lessee does hereby lease from City the land located at Pueblo Memorial Airport, Pueblo County, Colorado described in Exhibit "A" attached hereto and incorporated herein as if set out herein in full (herein "Additional Property ") for the purposes and upon the terms and provisions set forth herein and in the Lease of September 12, 1983 for a term of twenty -one (21) years and nine (9) months from July 1, 1984 to March 31, 2006. 2. Lessee shall make all payments required of the Lessee and perform all covenants and agreements on the part of the Lessee to be performed hereunder and under the Lease of September 12, 1983 the same as if (a) the Additional Property were included in the description of the Property leased under the Lease of September 12, 1983 at the time of its execution, (b) as to the Additional Property, the term of the Lease of September 12, 1983 commenced July 1, 1984. All the covenants and provisions of the Lease of September 12, 1983 are specifically referred to, incor- porated herein, and set out herein in full. 3. For the purposes of paragraph 2(a) and (d) of the Lease of September 12, 1983, City and Lessee agree that the Additional Property contains 0.64 acres more or less and that the additional annual rent and service fee to be paid by Lessee for the period from July 1, 1984 to April 1, 1991 is $ 153.60 and $ 128.00 respectively, per year and the parties agree that the annual rent and service fee may be modified thereafter as provided in the Lease of September 12, 1983. 4. Lessee shall, on or before January 1, 1985, construct upon the Additional Property a maintenance and hangar building for aircraft having a minimum of 10,000 square feet of net usable floor area in compliance and accordance with City's Building Codes and plans and specifications approved by City prior to construction. The building shall be inspected by City prior to occupancy thereof. Failure to timely construct said building shall constitute grounds to terminate this Lease Addendum by City upon twenty (20) days prior written notice to Lessee. The timely construction of the building herein described shall not release or discharge Lessee from its obligation to construct another building upon the Property described in the Lease of September 12, 1983 as required by paragraph 3 thereof. 5. Subject to the provisions of this paragraph 5, City does hereby consent to Lessee assigning its leasehold estate in the Additional Property created hereby to Central Bank of Pueblo (herein "Bank ") as collateral security for the repayment of a loan from Bank to Lessee for the sole purpose of financing the construction of the building described in paragraph 4 hereof (herein "Loan "). City does further consent to Lessee mortgaging or otherwise encumbering its interest in this Lease Addendum and Lessee's leasehold estate hereby created (herein "Leasehold Estate ") to Bank as security for the Loan, provided that City's interest in and title to the Additional Property shall not become subordinate or subject to any such mortgage or encumbrance. In the event Lessee so mortgages or encumbers the Leasehold Estate, City agrees that upon default by Lessee under the terms of the mortgage or other instrument of encumbrance (herein "Security Instrument "), Bank may cause said Security Instrument to be foreclosed in any lawful manner and acquire Lessee's title and interest in the Leasehold Estate. Bank may assign Lessee's rights therein or sublet the Additional Property to a tenant approved in writing by the City pending foreclosure and acqui- sition of the Leasehold Estate, and thereafter Bank may assign the Leasehold Estate, as a whole, to an assignee or sublessee approved in writing by City, which approval will not be unreasonably withheld, but no other or additional assignment or sublease shall be made without the prior written consent of the City. Bank and any assignee or tenant of Bank pending foreclosure and acquisition of the Leasehold Estate, approved as aforesaid, shall be liable to perform all obligations imposed upon Lessee under this Lease Addendum and the Lease of September 12, 1983 only during the period Bank, or such assignee or tenant has possession of the Leasehold Estate. Bank and any assignee or tenant of Bank after foreclosure and acquisition of Lessee's Leasehold Estate under the Security Instrument shall be liable during the term of the Lease of September 12, 1983 as modified by this Lease Addendum (from July 1, 1984 to March 31, 2006) to perform all of Lessee's obligations thereunder unless excused therefrom by City in writing. For purposes of thi Tt paragraph, "Bank" means and includes'an of Pueblo and any subsequent holder of the Loan.` 6. City does hereby waive its right granted by paragraph 20 of the Lease of September 12, 1983 to terminate this Lease Addendum and the Lease of September 12, 1983 as to the Additional Property. 7. Except as specifically otherwise provided herein, Lessee shall not, in whole or in part, assign this Lease Addendum or sublet the Additional Property without the prior written consent of City. 8. This Lease Addendum incorporates the entire understanding between the City and Lessee and no change, modification or amend- ment thereto shall be binding upon the City unless embodied in a written agreement and approved by resolution or ordinance of the City Council of City. 9. This Lease Addendum shall be governed and construed according to the laws of the State of Colorado and shall be binding upon and inure to the benefit of the successors and assigns of the City and Lessee. Signed the day and year first above written. [Seal] Attest: Pueblo, a Municipal Corporation President of the City Council -2- Approved as to form: City Attor ey [Seal] Attest: Secre y r Flower Aviation WI—= &Klt 44V Nr- - ) By.J P siden -3- A parcel of land in the SE4 of the NE4 of Section 25, T -20 -S, R -64 -W and in the SW4 of the NW4 of Section 30, T -20 -S, R -63 -W, more particularly described as follows: Beginning at W4 corner of Section 30, T -20 -S, R -63 -W; thence North 0 08'40" West and along the West line of said Section 30, a distance of 381.54'; thence South 88 West a distance of 225.00'; thence North 01 West a distance of 270.00' to point of beginning; thence North 88 East a distance of 221.53'; thence North 1 [Vest a distance of 183.00 thence South 88 West a distance of 13.35 thence North 1 West a distance of 12.75 thence South 88 West a distance of 37.18'; thence North 1 West a distance of 62.76 thence South 88 West a distance of 187.00 thence South 1 East a distance of 234.66' to point of beginning. Said parcel of land contains 0.64 acres more or less. EXHIBIT "A"