HomeMy WebLinkAbout6621RESOLUTION NO. 6621
A RESOLUTION APPROVING A LEASE EXTENSION AGREE-
MENT AND LEASE ADDENDUM BETWEEN PUEBLO, A
MUNICIPAL CORPORATION AND FLOWER AVIATION OF
COLORADO, INC., AND AUTHORIZING THE PRESIDENT OF
THE CITY COUNCIL TO EXECUTE SAME
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that:
CFrTTnN 1
The Lease Extension Agreement and Lease Addendum both dated
September 24, 1990, copies of which are attached hereto, by and
between Pueblo, a Municipal Corporation, and Flower Aviation of
Colorado, Inc. relating to the lease of property at Pueblo
Memorial Airport, having been approved as to form by the City
Attorney, is hereby approved.
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The President of the City Council is hereby authorized to
execute the Lease Extension Agreement and Lease Addendum on behalf
of Pueblo, a Municipal Corporation, and the City Clerk is directed
to affix the seal of the City thereto and attest the same.
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All net proceeds derived from said Lease Extension Agreement
will be used for the operation, maintenance and improvement of the
Airport.
ATTEST:
12 Al
. 1
Ci y Clerk
TJ 44.12
INTRODUCED: September 24, 1990
By HOWARD WHIT
Councilperson
APPROVED:
X
•- ._. .�� Lac. `�,
Pr ident of the City Council uncil
LEASE EXTENSION AGREEMENT
This Lease Extension Agreement entered into the 24th day of
September, 1990 between Pueblo, a Municipal Corporation (the
"City ") and Flower Aviation of Colorado, Inc. (the Lessee),
Witnesseth:
For and in consideration of the mutual covenants herein con-
tained, City and Lessee agree:
1. The term of the Lease Agreement dated August 26, 1974
between City and Flower Aviation, Inc., Lessee's predecessor in
interest thereto, and all amendments thereto, for 2,856 square
feet of space in the building adjacent to City's airport terminal
building (the "Lease ") is hereby extended for a period of one
(1) year, from October 1, 1990 to September 30, 1991 upon the same
terms, covenants and conditions, except:
(a) the rent for the full one (1) year extended term
shall be Six Thousand Seven Hundred Twenty and No /100 Dollars
($6,720.00) payable in monthly installments of Five Hundred Sixty
and No /100 Dollars ($560.00) in advance on or before the first day
of each calendar month commencing October 1, 1990.
(b) the Lessee shall not have or be granted the rights
of first refusal contained in paragraphs 7(A) and (B) of the Lease
and such rights of first refusal are hereby cancelled, and
(c) either City or Lessee may terminate the Lease upon
thirty (30) days prior written notice given on any rent payment
date to the other party specifying the date of termination,
provided such notice of termination may not be given until after
substantial completion of an office building Lessee intends to
construct on other land leased by Lessee from City at the Pueblo
Memorial Airport.
2. The Lease as extended and amended hereby and this Lease
Extension Agreement shall be binding upon and inure to the benefit
of City and Lessee and their respective successors and approved
assigns.
Dated the day and year first above written.
LESSEE
FLOWER AVIATION OF COLORADO,INC.
B G�
P, sident
CITY
PUEBLO, A MUNICIPAL CORPORATION
By 4�_e a
Pr dent of the City Council
S E A L� /]
ATTEST :
jecret y
S E A L ]
ATTEST:
_d
C y Clerk
APPROVED AS TO FORM:
City Atto COT
TJ 44.11 -2-
LEASE ADDENDUM
THIS LEASE ADDENDUM entered into this 24th day of September,
1990, by and between Pueblo, A Municipal Corporation (herein
"City "), and Flower Aviation of Colorado, Inc., a Colorado
Corporation (herein "Lessee "),
W I T N E S S E T H:
WHEREAS, City and Lessee entered into a Pueblo Memorial
Airport Operating Agreement and Land Lease dated September 12,
1983 for property therein described (the "Lease "), and
WHEREAS, Lessee desires to construct a new office building
for its use upon the leased premises, and
WHEREAS, Lessee desires to finance the construction of said
office building, and
WHEREAS, the Lease prohibits Lessee from so acting without
consent of the City;
NOW, THEREFORE, in consideration of the foregoing and the
mutual promises herein contained, City and Lessee agree as
follows:
1. Pursuant to Paragraph 15 of the Lease, City hereby
consents to the construction of an office building upon the leased
premises (the "Building "). The Building shall be constructed in
substantial compliance with the plans, specifications and plot
plans approved by and on file in the office of the Director of
Aviation of the City (the "Plans ").
2. Lessee shall within 180 days from date commence and
thereafter diligently pursue the construction of the Building in
compliance with the Plans and all applicable laws, codes and
regulations including the requirements of the Federal Aviation
Administration, the Pueblo Regional Building Authority, and other
regulatory agencies with jurisdiction over such construction. If
Lessee fails to timely commence and thereafter diligently pursue
construction of the Building, City may terminate this Lease
Addendum upon 30 days prior written notice.
3. The City does hereby waive its right, granted by
Paragraph 20 of the Lease to terminate this Lease Addendum and the
Lease with respect to the Building and reasonable access thereto.
4. Subject to the provisions of this paragraph, the City
does hereby consent to Lessee assigning its leasehold interest
under the Lease 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 (the "Loan "). City does further consent to Lessee
mortgaging or otherwise encumbering its interest in the Building
and leasehold estate to Bank as security for the Loan, provided
that the City's interest in and title to the leasehold estate and
Building, if any, 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
thereafter the 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 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 the Lessee's leasehold estate
under the security instrument shall be liable during the term of
the Lease as modified by any lease addendums (from July 1, 1984 to
March 31, 2006) to perform all of Lessee's obligations thereunder
(including curing defaults) unless excused therefrom by City in
writing. For the purposes of this paragraph, Bank means and
includes Minnequa Bank of Pueblo and any subsequent holder of the
loan.
5. This Lease Addendum incorporates the entire understand-
ing between the City and Lessee, and no change, modification or
amendment thereto or to the Lease shall be binding upon the City
unless embodied in a written agreement and approved by Resolution
or Ordinance of the City Council of City.
6. The Lease as amended by this Lease Addendum and all
prior Lease Addendums shall remain in full force and effect, be
governed and construed according to the laws of the State of
Colorado, and 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.
PUEBLO, A MUNICIPAL CORPORATION
ATTEST: By
Q A�4j'� ��� Pre ent of the Council
y Clerk
-2-
APPROVED AS TO FORM:
City Attorney - /,"
FLOWER AVIATION OF ,;COLORADO, INC.
ATTEST: B
411X-,A
sident
.Secreta
TJ 47.8 -3-