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HomeMy WebLinkAbout6762RESOLUTION NO. 6762 A RESOLUTION APPROVING AN AMENDMENT OF LEASE EXTENSION AGREEMENT 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: SECTION 1 The Amendment of Lease Extension Agreement and Lease Addendum both dated, June 10, 1991, 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, are hereby approved. SECTION 2 The President of the City Council is hereby authorized to execute the Amendment of 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. SECTION 3 All net proceeds derived from said Lease Extension Agreement will be used for the operation, maintenance and improvement of the Airport. INTRODUCED: June 10, 1991 a ATTEST: c r Cit elk Councilperson APPR D: President of the City Council FA KAST V . , ._ -7 LEASE ADDENDUM THIS LEASE ADDENDUM entered into this 10th day of June, 1991, 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 Agreement and Land Lease dated, September "Lease "), and into a Pueblo Memorial Airport Operating 12, 1983 for property therein described (the WHEREAS, Lessee desires to remodel an existing building upon the leased premises for use as an office, and WHEREAS, Lessee desires to finance the remodeling 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 remodeling of an existing building upon the Southeast portion of the leased premises (the "Building "). The Building shall be remodeled 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 45 days from date hereof commence and thereafter diligently pursue the remodeling 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 remodeling. If Lessee fails to timely commence and thereafter diligently pursue the remodeling of the Building, City may terminate this Lease Addendum upon 30 days prior written notice. 3. 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 remodeling 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 leased premises 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. 4. This Lease Addendum incorporates the entire understanding 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. 5. The Lease as amended by this Lease Addendum and all prior Lease Addendum, except the Lease Addendum of September 24, 1990, 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. 6. The prior Lease Addendum of the parties, dated September 24, 1990, is hereby rescinded and shall be of no further force or effect. PUEBLO A MUNICIPAL CORPORATION By 2� 0 . President of the Council ATTEST �_ dfj Clerk -2- APPROVED AS TO FORM: City Attor6ey ATTEST: Se 1a FLOWER AVIATION OF COLORADO, INC. By Presidenl -3- FLAWERU.F.ASE.ADD AMENDMENT OF LEASE EXTENSION AGREEMENT This Amendment of Lease Extension Agreement is entered into this 10th day of June, 1991 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 contained, City and Lessee agree: 1. Paragraph 1(c) of the Lease Extension Agreement of the parties, dated September 24, 1990, is hereby amended to read as follows: "(c) either City or Lessee may terminate the Lease upon thrity (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 either (i) substantial completion of the remodeling of the building Lessee intends to remodel on other land leased by Lessee from City at Pueblo Memorial Airport, or (ii) the Lease Addendum dated, June 10, 1991, between the parties is terminated as therein provided ". 2. All other terms of the Lease Extension Agreement of the parties dated, September 24, 1990, not amended herein, shall remain in full force and effect. 3. The Lease between the parties, dated August 26, 1974, as extended and amended by the Lease Extension Agreement of September 24, 1990, and this 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. By President [ S E A L ATTEST: eA 4 i ta CITY PUEBLO, UNICIPAL CORPORATION By President ` of the City Council APPROVED AS TO FORM: City Attorney