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HomeMy WebLinkAbout05939} RESOLUTION NO. 5939 A RESOLUTION APPROVING A LEASE ADDENDUM BETWEEN PUEBLO, A MUNICIPAL CORPORATION AND FLOWER AVIATION OF COLORADO, INC. AND AUTHORIZING THE PRESIDENT OF CITY COUNCIL TO EXECUTE SAME BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, COLORADO, that: SECTION 1. The Lease Addendum dated October 14, 1986, a copy of which is attached hereto and made a part hereof, by reference, by and between Pueblo, a Municipal Corporation, and Flower Aviation of Colorado, Inc., relating to consent to a certain loan, having been approved as to form by the City Attorney, is hereby ap- proved. 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 to same. INTRODUCED Decemher 8, 19$6 By PAUL JONES Councilman APPROV President of the City Council ATTEST: Cit Clerk LEASE ADDENDUM THIS LEASE ADDENDUM entered into the 14th day of October, 1986 by and between PUEBLO, A MUNICIPAL CORPORATION (herein "City ") and FLOWER AVIATION OF COLORADO, INC., a Colorado corporation (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, Lessee desires to finance the 6,000 square - foot building required pursuant to Paragraph 3 of said Lease, and WHEREAS, Paragraph 15 of the general provisions of said Lease prohibit Lessee from assignment of its interest in the property without the prior written consent of the City; NOW, THEREFORE, in consideration of the foregoing and the mutual promises herein contained, City and Lessee agree as follows: 1. Subject to the provisions of this Paragraph, the City does hereby consent to Lessee assigning its leasehold interest to Minnequa 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 herein. City does further consent to Lessee mortgaging or otherwise encumbering said building and its interest in its leasehold estate to Bank as security for the loan, provided that the City's interest in and title to the leasehold estate shall not become subordinate or subject to any such mortgage or encumbrance. In the event that the 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 leasehold estate to a tenant approved in writing by the City pending foreclosure and acquisition of the leasehold estate, and there- after Bank may assign the leasehold estate, as a whole, to an assignee or sublessee approved in writing by City, which approval shall 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 any lease addendums, to perform all of Lessee's obligations thereunder unless excused therefrom by City in writing. For the purpose of this paragraph, Bank means and includes Minnequa Bank of Pueblo and any subsequent holder of the Loan. 2. 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 building subject hereto. 3. Lessee shall not, in whole or in part, assign or sublet its leasehold interest without the prior written consent of the City. 4. This Lease Addendum incorporates the entire understanding between the City and Lessee and no change, modifi- cation or amendment 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. 5. This Lease Addendum shall be governed and construed according to the laws of the State of Colorado and shall be binding and inure to the benefit of the successors and assigns of the City and Lessee. Singed the day and year first above written. ATTEST: PUEBLO, A MUNICIPAL CORPORATION By r Approved as to Form: City Attor - :21M FLOWER AVIATION OF COLORADO, INC. By c +. Preside I ATTEST: r etary -3-