HomeMy WebLinkAbout6091RESOLUTION NO. 6091
A RESOLUTION APPROVING AN AMENDED LEASE AGREEMENT
BETWEEN THE CITY OF PUEBLO AND HALLIBURTON
COMPANY, AUTHORIZING THE CITY ATTORNEY TO SETTLE
THE CLAIMS OF HALLIBURTON COMPANY AGAINST THE CITY
OF PUEBLO AND MAKING APPROPRIATIONS THEREFOR, AND
AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL TO
EXECUTE THE AMENDED LEASE AGREEMENT
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, COLORADO, that:
SECTION 1
The Amended Lease Agreement dated September 28, 1987 between
the City of Pueblo, as Lessor and Halliburton Company, as Lessee
relating to 25.60 acres of land at the Pueblo Memorial Airport
Industrial Park, the original of which is on file in the office of
the City Clerk, having been approved as to form by the City
Attorney, is hereby approved, and the President of the City
Council is authorized and directed to execute the Amended Lease
Agreement for and on behalf of the City of Pueblo.
SECTION 2
The City Attorney is authorized to settle the claims of
Halliburton Company against the City of Pueblo and Civil Action
No. 86 CV 976, Pueblo County District Court. The City Attorney is
further authorized to execute all instruments and documents in the
name of and for and on behalf of the City required therefor.
There is hereby appropriated the sum of $40,000.00 for the purpose
of settling the claims of Halliburton Company and said sum is
directed to be transferred from account number 034 - 1987 -9001 to
account number 034 -1987 -8706.
INTRODUCED: September 28, 1987
By Allyn Middelkamp
Councilman
ATTEST: APPROV
1F ' f
1
City lark President of the City Council
TJ 22.34 -2-
)N0.84'7291 RECORDED / 0,' 0 � ,� M OCT 2 8 19R7 BOOR23 9
PUEBLO COUNTY, COLORADO
AMENDED LEASE AGREEMENT
THIS AMENDED LEASE AGREEMENT entered into this 28th day of
September, 1987 between the City of Pueblo, a Municipal
Corporation, herein called Lessor, and Halliburton Company, a
Delaware Corporation with offices at 3600 Lincoln Plaza, 500 N.
Akard St., Dallas, Texas, 75201 -3391, and duly qualified to do
business in the State of Colorado, herein called Lessee,
WHEREAS, Lessor and Lessee entered into a Lease Agreement
dated March 12, 1979, and
WHEREAS, Lessor and Lessee are desirous of amending certain
provisions of the March 12, 1979 Lease Agreement by entering into
this Amended Lease Agreement;
NOW, THEREFORE, Lessor and Lessee agree as follows:
W I T N E S S E T H:
THAT IN CONSIDERATION of the payment of rent hereinafter
provided and the keeping and performance of each of the covenants
and agreements of the said Lessee hereinafter set forth, said
Lessor has and does hereby lease unto the said Lessee the land
situate at the Pueblo Memorial Airport, herein called Airport, in
the County of Pueblo, State of Colorado, described in Exhibit "A"
attached hereto and incorporated herein as if set out in full,
herein called "leased premises ".
TO HAVE AND TO HOLD the leased premises unto the Lessee for a
term of thirty -two (32) years commencing on April 1, 1987 and
terminating on March 31, 2019, for and upon an annual rental of
$3,770.36, except as hereinafter provided.
aook2369 Fmr S 5
The annual rental as set forth above shall be adjusted for
the twenty (20) year period commencing April 1, 1999 based on the
cost of living index published by the Bureau of Labor Statistics
of the United States Department of Labor for all cities and all
items. The annual rental for each year of such twenty (20) year
period shall be computed by dividing the annual rental for the
first year of the lease by the index number for April 1, 1979,
which for this purpose shall be the first month of the initial
term of the March 12, 1979 Lease, and then multiply that amount by
the index number for the month immediately preceding the first
month of the first year of such twenty (20) year period. In the
event that the Bureau of Labor Statistics shall change the base
period from the base period used during April 1979, the new index
number for April 1979 shall be substituted for the index number
originally used as the divisor of the rental specified in the
first year of the Lease.
All rent shall be paid annually to Lessor at Lessor's
Department of Finance, City of Pueblo, Colorado in advance without
notice.
1. RIGHTS AND PRIVILEGES OF LESSEE.
A. Lessee shall use the premises for such purposes as
may be reasonably necessary and incident to its business including
manufacturing purposes and incidental office and warehouse use and
shall have the full use thereof, together with any and all
appurtenances hereto belonging, without molestation; and Lessee
shall have the right subject to the conditions and covenants of
this Lease to erect upon the property so leased hereunder any
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aook�3�9 �acF�3 i �
improvements that it may desire and which are reasonably necessary
for the conduct of its business, which said improvements
(including the buildings presently located on the leased premises)
shall at all times remain the property of Lessee and Lessee is
hereby given and granted the right to remove the said improvements
from the property upon termination of this Lease. Lessee's right
to modify, remove, alter or tear down the present buildings and
make any other changes, improvements or modifications to the
property necessary in Lessee's sole discretion is subject to City
of Pueblo building codes and zoning restrictions and covenants and
restrictions contained in this Lease.
B. Lessee, its employees and invitees shall have the
right of ingress and egress between the Main entrance of the
Airport as the same now exists or may hereafter be relocated and
the leased premises over, upon and through such streets as from
time to time shall be designated by Lessor.
2. RIGHTS AND PRIVILEGES OF LESSOR.
A. Lessor shall have the right to enter upon the
leased premises for the purpose of inspecting same at any
reasonable hour.
B. Lessor reserves the right to maintain, abandon,
relocate, develop, improve, or repair the Airport, the landing
area of the Airport and all publicly owned facilities of the
Airport but shall not be obligated to the Lessee for any failure
to so maintain, repair, develop or improve the Airport or for the
abandonment or relocation of the Airport or publicly owned
facilities.
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BooK2369 Farr 377
C. There is hereby reserved to the Lessor, its
successors, and assigns, for the use and benefit of the public, a
right of flight for the passage of aircraft in the airspace above
the surface of the premises hereby leased, together with the right
to cause in said airspace such noise as may be inherent in the
operation of aircraft, now known or hereafter used, for navigation
of or flight in the air, using such airspace or landing at,
taking -off from, or operating on Pueblo Memorial Airport.
3. OBLIGATIONS OF LESSEE:
A. Lessee shall, at its sole expense, maintain and
keep the leased premises and any improvements presently existing
or hereafter constructed thereon in good condition, appearance,
state of repair and landscaped to the extent reasonable
considering the nature of Lessee's business.
B. The Lessee shall, to the extent reasonable
considering the nature of its business, at its own expense, keep
the premises neat, clean, safe and orderly at all times, free of
waste, rubbish and debris, and shall provide a complete and proper
arrangement for the sanitary handling and disposal of all trash,
garbage and other refuse resulting from Lessee's occupancy of the
leasehold and its activities.
C. Lessee shall furnish at its own expense and
promptly pay for all utilities except sewer services used by
Lessee and all taxes assessed against improvements on the leased
premises prior to same becoming delinquent. Lessor shall pay all
taxes, if any, assessed against the leased premises.
D. Lessee agrees, except as may be otherwise provided
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BooK`ti3�9 ParF8 7 8
in other contracts entered into between the Lessor and Lessee, not
to engage in any business at the Airport other than that which is
expressly authorized herein.
E. The Lessee agrees to indemnify, defend, and save
the Lessor, its agents, officers, representatives and employees,
harmless from and against any and all penalties, liability or loss
including costs and attorney fees resulting from claims or court
action, whether civil, criminal or in equity, and arising out of
the negligence of the Lessee, its agents, employees, or servants.
F. Lessee shall maintain comprehensive general public
liability insurance with limits for personal injury of not less
than $300,000.00 for any one occurrence or for any one injury or
death and $100,000.00 property damage.
Lessee shall furnish to Lessor a Certificate from the
Insurance Carrier or Carriers showing such insurance to be in full
force and effect during the term of this Lease Agreement. All
said policies shall provide for a minimum of ten (10) days notice
to the Lessor in the event of cancellation, non - renewal, or
material change in the terms thereof.
G. Lessee shall not hold or attempt to hold Lessor
liable for any injury, including loss of life, to any person, or
for damage to any property while on the leased premises,
irrespective of how such injury or damage may be caused or
occasioned, except that this paragraph shall not apply to acts of
Lessor, its agents or employees.
H. In addition to the rent hereby reserved, Lessee
agrees to pay a combined service fee for services and facilities
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BOOk�� FAGF879
now provided by Lessor at the Airport, namely: sewage disposal,
street maintenance, fire protection, and street lighting, of
$183.75 per acre per year payable in monthly installments in
advance without notice on or before the first day of each month
commencing on the first day of April, 1987. The combined service
fee may be modified, increased, or decreased at any time after
five years from date hereof by action of the City Council of
Lessor; provided, that fees for said combined services shall be
generally equal for all tenants and owners of property at the
Pueblo Memorial Airport Industrial Park receiving such services
and be reasonable in relation to the actual costs of such services
then being furnished by Lessor at the Pueblo Memorial Airport; and
provided, further, that any such increases in fees shall not be
more frequent than every five years from date hereof and such
increases shall not exceed 5% of the service fees for the prior
five year period.
4. OBLIGATIONS OF LESSOR:
A. Lessor shall maintain sewer mains as the same are
presently shown on the Utilities Map of the Pueblo Memorial
Airport on file in the office of the Director of Aviation of
Pueblo. Lessee agrees that Lessor shall have a right at all times
to enter upon the leased premises for the purpose of maintenance
and repair of sewer and water mains located on the leased
premises. Lessee shall construct and maintain at its own expense,
free from leaks and unsanitary conditions, all water and sewer
service lines other than as shown and designated as "mains" on
said Utilities Map as may be necessary to its enjoyment and use of
Book,-369 FAOF889
the leased premises.
5. GENERAL CONDITIONS:
A. The terms and conditions of this Lease and Lessee's
rights hereunder are hereby made subject to the provisions of
Title III, Chapter 1 of the 1971 Code of Ordinances of the City of
Pueblo in effect on March 12, 1979. In the event of conflict
between said Code of Ordinances and any provision herein, said
Code shall control.
B. The Lessee, as part of the consideration hereof,
does hereby covenant and agree, as a covenant running with the
land, that in the event facilities are constructed, maintained, or
otherwise operated on the leased premises for a purpose for which
a Department of Transportation program or activitiy is extended or
for another purpose involving the provision of similar services or
benefits, the Lessee shall maintain and operate such facilities
and services in compliance with all other requirements imposed
pursuant to Title 49, Code of Federal Regulations, Department of
Transportation, Subtitle A, Office of the Secretary, Part 21, Non-
discrimination in Federally- assisted programs of the Department of
Transportation -- Effectuation of Title VI of the Civil Rights Act
of 1964, and as said Regulations may be amended.
The Lessee, as part of the consideration hereof, does
hereby covenant and agree, as a covenant running with the land,
that (1) no person on the grounds of race, color or national
origin shall be excluded from participation in, denied the
benefits of, or be otherwise subjected to discrimination in the
use of the leased premises, (2) that in the construction of any
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Boox`'369 �arF8�1
improvements on, over, or under the leased premises and the
furnishing of services thereon, no person on the grounds of race,
color, or national origin shall be excluded from participation in,
denied the benefits of, or otherwise be subjected to discrimina-
tion, (3) that the Lessee shall use the leased premises in
compliance with all other applicable requirements imposed by or
pursuant to Title 49, Code of Federal Regulations, Department of
Transportation, Subtitle A, Office of the Secretary, Part 21, Non-
discrimination in Federally- assisted programs of the Department of
Transportation -- Effectuation of Title VI of the Civil Rights Act
of 1964, and as said Regulations may be amended.
C. The Lessee agrees to comply with the notification
and review requirements covered in Part 77 of the Federal Aviation
Regulations relating to the construction or alteration of
buildings and structures on the leased premises. Lessee agrees to
restrict the height of structures, objects of natural growth and
other obstructions on the leased premises to a height of not more
than 4,700 feet above mean sea level, it being understood and
agreed that the ground level of the leased premises is 4,620 feet,
more or less, above mean sea level.
D. The Lessee by accepting this Lease expressly agrees
for itself, its successors and assigns that it will not use the
leased premises in any manner which might interfere with the
landing and taking -off of aircraft from Pueblo Memorial Airport or
otherwise constitute an airport hazard. In the event the
aforesaid covenant is breached, the Lessor reserves the right to
enter upon the premises hereby leased and cause the abatement of
Boox2369 FzF882
such interference at the expense of the Lessee.
E. The Lessee shall observe faithfully all general
rules and regulations affecting use of the airport, established by
the Lessor, including but not limited to rules affecting the
operation of motor vehicles upon, to and from the Airport.
F. The Lessee, and all officers, agents and employees
of Lessee, while upon the leased premises hereby agree to be bound
by and subject to all the Offense Ordinances of Pueblo, a
Municipal Corporation, whether acting in the course of Lessee's
business or otherwise, to all intents and purposes the same as
though the leased premises were located within the City Limits of
Lessor.
G. The Lessee represents that it has inspected the
Airport and all its premises and facilities and that it accepts
the conditions of same and fully assumes the risk incident to the
use thereof. The Lessor shall not be liable to the Lessee for any
damages or injuries to the property or personnel of the Lessee
which result from hidden, latent or other dangerous conditions on
the Airport or leased premises.
H. This Lease and all provisions hereof are subject to
all rights the United States Government now has or in the future
may have or acquire, affecting the control, operation, regulation
and re -entry upon and taking over of the said Airport including
the leased premises in the event of a National Emergency. If the
United States Government exercises its right of re- entry, Lessee
agrees to immediately quit and vacate the leased premises and each
party hereto shall be released from all further obligations
hereunder and neither party shall be thereafter liable to the
other party for or on account of any damages, loss of business, or
injury occasioned thereby.
I. If the whole of the leased premises, or such
portion thereof as will make the leased premises unsuitable for
the purposes herein leased, is condemned for any public use or
purpose by any legally constituted authority, or is taken by the
United States Government under its right of re -entry as described
in paragraph H above, then in either of such events this Lease
shall cease from the time when possession is taken by such public
authority and rental shall be accounted for between the Lessor and
the Lessee as of the date of the surrender of possession. Such
termination shall be without prejudice to the rights of either the
Lessor or the Lessee to recover compensation from the public
authority for any loss or damage caused by such condemnation or
retaking. Any award or damages for the condemnation or retaking
of the leased premises shall belong to the Lessor and any award or
damages for the condemnation or retaking of the buildings,
fixtures or equipment of the Lessee on the leased premises or
relocation payments shall belong to the Lessee and those persons
claiming under the Lessee. Neither the Lessor or the Lessee shall
have any rights in or to any award made to the other by the public
authority.
6. DEFAULT HOLDOVER AND NON- PERFORMANCE CONDITIONS.
A. That if, after the expiration of the term of this
Lease, Lessee shall remain in possession of the leased premises
and continue to pay rent without any express written agreement as
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B0�1Nti3Fi9 FAwS84
to such holding over, the Lessee agrees that all terms and
covenants of this Lease shall remain in effect, except that Lessee
shall be a tenant from month to month at a rental equal to the
last month's rent payable hereunder.
B. That if the Lessee shall be declared insolvent or
bankrupt, or if any assignment of the Lessee's property shall be
made for the benefit of creditors or otherwise, or if Lessee's
leasehold interest herein shall be levied upon under execution, or
seized by virtue of any writ of any Court of Law, or a Trustee in
Bankruptcy or a Receiver appointed for the property of the Lessee,
whether under the operation of the State or the Federal Statutes,
then and in any such case, the Lessor may, at its option, with 30
days written notice, terminate this Lease and immediately retake
possession of said premises without the same working any
forfeiture of any accrued obligations of the Lessee hereunder.
C. That if the rent above reserved, or any part
thereof shall be in default, or in case of a breach by the Lessee
of any of the covenants or agreements herein, the said Lessor may
give notice of its intention to terminate specifying such breach
or default, and if Lessee shall not remedy such breach or correct
such default within 30 days from the date of Lessor's notice,
Lessor may declare this Lease terminated, and be entitled to the
possession of said premises without any further notice or demand.
If the Lessor shall become entitled to the possession of said
premises either by the expiration of this Lease or by any
violation of any term or provision as herein provided for, and the
said Lessee shall refuse to surrender and deliver up the
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ao�kti369 FAU885
possession of said premises, after the service of said notice as
aforesaid, then and in that event, the said Lessor may, without
further notice or demand, enter into and upon said premises, or
any part thereof, and take possession thereof and repossess them,
and expel, remove, and put out of possession the Lessee, using
such help, assistance and force in so doing as may be needful and
proper, without prejudice to any remedy allowed by law, available
in such cases.
D. That in case said premises are left vacant and any
part of the rent herein reserved be due and unpaid, then the
Lessor may for a period of five years thereafter, without in any
way being obligated to do so, and without terminating this Lease,
retake possession of said premises and rent the same for such
rent, and upon such conditions as the Lessor may think best,
making such changes and repairs as may be required, giving credit
for the amount of rent so received less all expenses of such
changes and repairs, and said Lessee shall be liable for the
balance of the rent herein reserved for a maximum period of five
years.
E. Lessee agrees to pay to Lessor all costs, including
a reasonable attorney fee, incurred by Lessor in recovering any
rent or other money due and unpaid under the terms of this Lease
or to recover possession of the leased premises after termination
hereof.
7. SPECIAL CONDITIONS.
A. Lessor hereby grants to Lessee, subject to
approval, if necessary, and continued authorization by the
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Book 2 FAGS �b
Railroad Company, if any, having jurisdiction over trackage
involved, which approval and authorization Lessee shall obtain,
the right to add approximately 200 feet of rail track to the NW of
the leased premises, the right to tie into the Dana Corporation
track, and the right to add a "Y" for westbound cars right -of -way.
Approximate locations are shown on attached Exhibit "A ", but
actual location will be agreed by the parties based on engineering
feasibility, location of utilities, improvements on the property,
and costs. When laying the trackage set forth in this paragraph
7(A) or other rail trackage on the leased premises, Lessee agrees
to prevent damage to any utilities located underneath the track
and Lessee shall repair any damage caused to such utilities by the
laying and use of such trackage. Lessee understands and agrees
that the Lessor does not control or operate the railroad trackage
or railroad services at the Airport and that this paragraph grants
to Lessee only an easement and right -of -way over Lessor's property
for such purposes.
B. During the term of this Lease, Lessee, subject to
continued availability and authorization, if necessary, by the
Railroad Company, if any, having jurisdiction over the trackage
involved, shall for the purpose of conducting its business on the
leased premises have nonexclusive use of presently existing
railroad trackage at the Airport (and shall have exclusive use of
railroad trackage located upon the leased premises) so long as
Lessee's use of and access to the trackage does not unreasonably
interfere with other present or future tenant's or owners of
property at the Airport reasonable use and access thereto. In the
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BoBkti369 FAwS87
event Lessee's use of such trackage unreasonably interferes with
other tenant's or owner's use and access thereto or with vehicular
traffic on roads over which such trackage crosses, such use by
Lessee shall be subject to Lessor's scheduling. The Lessee shall
not be responsible for the maintenance and repair of railroad
trackage not used exclusively by Lessee.
C. Any building constructed on the leased premises
shall be set back a minimum of 25 feet from the curb line of
American Avenue and D.O.T. Road, if adjacent to said building.
Lessee shall keep and maintain a minimum of 25 parking spaces in
not less than 7,500 square feet of paved parking area. Driveways
from existing streets into the leased premises shall be located as
designated by the Lessor.
D. No permanent structure, except trackage, shall be
constructed on or over any underground utility or within any
utility easement shown on Exhibit "A ".
E. In case the premises, improvements, or any part
thereof, shall during the term of this Lease or any renewal or
extension thereof be destroyed or damaged by fire, the elements,
or any other cause not attributable to the negligent act or
omission of Lessee, so that the leased premises shall be thereby
rendered unfit for the business then being conducted thereon by
Lessee, then, in such case, this Lease may be terminated and ended
at the election of Lessee. In the event Lessee elects to
terminate, the unearned rental shall be refunded to Lessee and
Lessee shall clean up and remove all debris and damaged structures
from the leased premises.
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BOG k.`'369 Farr X388
F. No subletting of the leased premises shall release
Lessee from any of its obligations hereunder unless agreed to in
writing by the Lessor. Lessee shall have the right during the
term of this Lease to assign all of its rights and obligations of
this Lease to any financially responsible company, person or
partnership selected by Lessee who assumes in writing all of
Lessee's obligations hereunder, and from the date of delivery of
an executed copy of said assignment to Lessor, Lessee shall no
longer be held responsible nor obligated as to any requirement of
this Lease, except as to such occurring prior to the date of
delivery of such assignment.
G. Lessee agrees to fence the leased premises and any
easement hereby granted and maintain same if required for airport
security, provided, reasonable means of ingress and egress through
gates in such fence be made available to Lessor at location to be
mutually agreed upon.
H. The leased premises and Lessee's use thereof are
subject to existing utility, railroad trackage, sewer, and water
easements and rights -of -way as shown on Exhibit "A ".
I. Lessee acknowledges and agrees that its use of and
rights hereby granted are subject to: (1) the right of Lessor, its
employees, agents and tenants to use, repair, maintain and remove
the scale house located on the leased premises together with
sufficient property surrounding the scale house and the right to
cross over the leased premises for such purposes; and (2) the
Lease Agreement between Lessor and Robert E. King, d /b /a Grain
Mart, dated March 25, 1974 and the right of the Lessee thereunder
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aoox2369 FACF889
in and to the 0.36 acres covered by said Lease and located on the
leased premises.
8. MISCELLANEOUS PROVISIONS.
A. No assent by Lessor either expressed or implied to
any breach of any provision of this Lease shall constitute a
waiver of any succeeding or other breach.
B. All covenants and agreements in this Lease
contained shall be binding upon and inure to the benefit of the
Lessor and Lessee and their successors and assigns.
C. This Lease and any amendments thereto are subject
to prior written approval of the Federal Aviation Administration.
D. The Lease Agreement dated March 12, 1979 between
Lessor and Lessee is hereby superseded by the terms and provisions
of this Amended Lease Agreement.
E. The payment of the annual rent set forth on the
first page of this Lease and the combined service fee under para-
graph 3(H) hereof are hereby waived by the Lessor for the lease
years commencing April 1, 1987 and April 1, 1988, and, if Lessee
has not assigned or sublet the leased premises under paragraph
7(F) hereof, for the lease year commencing April 1, 1989.
Executed at Pueblo, Colorado the day and year first
above written.
ATTEST:
Ci - Clerk
r
APPROVED AS TO FORM:
PUEBLO, MUNICIPAL CORPORATION
By
Pr 'dent o the City Council
City Att
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800K,369 FAU 890
ATTEST:
Title:
COUNTY OF/ )?VEBLO- )
i v k: ) ss.
STATE OF COLORADO )
HALLIBURTON COMPANY
By,
J eph nson, President
Tit e: FreightMaster' Division
The
foregoing instrument
was acknowledged before
41`"-
me this �'
day of
` l p - , �t''t'_' 1 1 1987
by Michael Occhiato as
President of
the City
Council of Pueblo,
Colorado and Marian D.
Mead as City
ClpA bf`
-,he City of Pueblo,
Colorado.
Witness my hand and official seal.
,My commission expires: -�
F5: E A L ]
No=tary Public
i
COUNTY OF Tarrant
STATE OF Texas
ss.
The foregoing instrument was acknowledged before me this
13 day of October , 1987 by J. G. Stephenson as
President of FreightMaster Division of
Halliburton Company, a Delaware Corporation.
Witness my hand and official seal.
.... My commission expires:
[S E A L]
10/19/89
t `
Notary Public
TJ 22.5 -17-