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HomeMy WebLinkAbout6829RESOLUTION NO. 6 8 2 9 A RESOLUTION APPROVING A 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 Lease Addendum dated, October 15, 1991, a copy of which is 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. SECTION 2 The President of the City Council is hereby authorized to execute the 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. INTRODUCED: October 15, 1991 By HOW ARD WHITLOCK Councilperson ATTEST: APPROVED: President of the City Council t City itlerk APPROVED: President of the City Council LEASE ADDENDUM THIS LEASE ADDENDUM entered into this 15th day of October, 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 (herein the "Lease "), and into a Pueblo Memorial Airport Operating 12, 1983, for the property therein described WHEREAS, by Lease Addendum dated July 16, 1984, the City consented to Lessee assigning its leasehold estate as collateral security for the repayment of a loan from Central Bank of Pueblo for the purpose of financing the construction of a maintenance and hangar building upon the leased premises, and WHEREAS, by Lease Addendum dated October 14, 1986, the City consented to Lessee assigning its leasehold estate as collateral security for the repayment of a loan from Minnequa Bank of Pueblo for the purpose of financing the construction of a 6,000 square foot building upon the leased premises, and WHEREAS by Lease Addendum dated June 10, 1991, the City consented to Lessee assigning its leasehold interest as collateral security for the repayment of a loan from Minnequa Bank of Pueblo for the purpose of remodeling the existing building upon the southeast portion of the leased premises, and WHEREAS Lessee desires to consolidate its debts so that it only has one loan obligation to one creditor secured by its leasehold interest, and WHEREAS, the Lease prohibits Lessee from so acting without the 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 under the Lease to Minnequa Bank of Pueblo (herein "Bank ") as collateral security for the repayment of a loan (herein the "Loan") from Bank to Lessee for the purpose of refinancing and consolidating Lessee's prior secured loans from the Bank and Central Bank of Pueblo and for the purpose of financing the remodeling of the existing building upon the southeast portion of the leased premises. City does further consent to Lessee mortgaging or otherwise encumbering its interest in its buildings and the leasehold estate to the Bank as security for the Loan, provided that the City's interest in and title to the leasehold estate and buildings, if any, shall not become subordinate or subject to 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. 2. Upon execution of the note, security instrument, and other documents effectuating the Loan, the prior consents of June 10, 1991, October 14, 1986, and July 16, 1984 by the City, allowing Lessee to borrow and secure such loans with its leasehold interest, shall be revoked and of no effect. 3. 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 approved by Resolution or Ordinance of the City Council of the City. 4. 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. Signed the day and year first above written. PUEBLO, A MUNICIPAL CORPORATION By . President of the Council APPROVED AS TO FORM: City Attorney FLOWER AVIATION OF COLORADO, INC. 'i By Presider A'I"TEST: i