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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 08/21/2001 - SECOND READING OF ORDINANCE NO. 119, 2001, APPROVI AGENDA ITEM SUMMARY ITEM NUMBER: 14 FORT COLLINS CITY COUNCIL DATE: August 21,2001FROM: Michael W. Powers SUBJECT: Second Reading of Ordinance No. 119, 2001, Approving the Terms of the Lease by the City of 415 East Monroe for a Youth Activity Center. RECOMMENDATION: Staff recommends adoption of the Ordinance on Second Reading. EXECUTIVE SUMMARY: Everwest has offered to lease to the City the facility located at 415 East Monroe Street, east of the Foothills Fashion Mall and formerly occupied by Healthworks Health Club. The facility has over 26,000 square feet and will make an excellent replacement facility for the YAC. The term 10 of the lease is 10 years, which may be extended by later agreement. Ordinance No. 119, 2001, which was unanimously adopted on First Reading on July 17, 2001, authorizes the lease of the facility. AGENDA ITEM SUMMARY ITEM NUMBER: 32 A-C FORT COLLINS CITYDATE: July 17,2001 COUNCIL STAFF: Michael W. Powers SUBJECT: Items Relating to a New Youth Activity Center at 415 East Monroe. RECOMMENDATION: i Staff recommends adoption of the Resolutions and of the Ordinance on First Reading. ', FINANCIAL IMPACT: Lease payments for the current year under the lease`of 415 East Monroe have been appropriated and are available in the current fiscal year. All obligations for future years' terms of the agreement are contingent upon the appropriation of funds intended to pay the obligations in the lease agreement. The cost to lease the new Youth Activity Center facility on an annual basis is $193,000 more each year than 40 the lease cost for the current youth activity center EXECUTIVE SUMMARY: A. First Reading of Ordinance No. 119, 2001,Approving the Terms of the Lease by the City of 415 East Monroe for a Youth Activity Center. B. "' Resolution 2001-91 Authorizing a Sublease Agreement Between the City and Xermend, Inc. (Med-X Clinic of Northern Colorado) for the Use of Certain Property at the New Youth Activity Center at 415 East Monroe for a Physical Therapy Office for a Period of Eight Months. C. Resolution 2001-92 Authorizing a Sponsorship and Advertising Lease Agreement Between the City and Everwest for the Use of Certain Property at the New Youth Activity Center at 415 East Monroe for Commercial Advertising for a Period of Two Years. BACKGROUND: Since 1995 the City's Recreation Division has operated a very popular and successful Youth Activity Center (YAC) in the Old Fort Collins High School. The YAC offers hundreds of DATE: July 17,2001 2 ITEM NUMBER: 32 A-C activities for youth ages 2 through 19, including sports, dance, crafts, games, classes, and trips. Last year the center had over 140,000 youth contact hours. A few years ago, Colorado State University (CSU) purchased the Old Fort Collins High School from Poudre School District. CSU plans to renovate the building into the University's Center for the Arts and hopes to begin construction of the Arts Center in 2002. Consequently, the YAC needs a new home. Council has been aware of this situation and Council's Policy Agenda on Youth Issues includes the goal of finding a new facility for the YAC. r== Yl Lease of 415 East Monroe: Everwest has offered to lease to the City the facility located at 415'East Monroe Street, east of the Foothills Fashion Mall and formerly occupied by Healthworks`I3ealth Club. The facility has over 26,000 square feet and will make an excellent replacement facility for the YAC. The term of the lease is 10 years, which may be extended by later agreement. Although the City Manager has the authority to enter info the"building lease, Council approval of the lease is needed to exempt the leased property from taxation. Adoption of Ordinance No. 119, 2001, allows the City to apply for this tax exemption. Sublease to Med-X: The owner of Healthworks has operated another health-related business (physical therapy services), known as Med-X, in the.415 East Monroe building. As a condition of leasing the building from Everwest, the City will need to sublease approximately 3,500 square feet of the building to Med-X for up to eight months. By,adoption of Resolution 2001-91 Council authorizes this sublease. The terms of the sublease are set forth in the Resolution. Sponsorship Agreement/Advertising Lease to Everwest: The final element of the transaction deals with a sponsorship agreement between the City and Everwest. Everwest will make,monthly payments totaling $50,000 each year, for a period of two years,.for the non-exclusive right to display advertising in the YAC for businesses located on property owned by Everwest, including Foothills Fashion Mall and for the right to advertise itself as a sponsor of the YAC. The advertising location and content must be approved by the City. The advertising will be only in designated locations (designated by the City), allowing the sale of other advertising in the facility as appropriate and desired. Adoption of Resolution 2001- 92 approves the sponsorship agreement. Other Donations: --- Everwest is also proposing to donate to the City $50,000 in cash, for general use in connection with the YAC facility, and to donate health and fitness equipment purchased from the prior tenant in the new YAC space for the amount of$150,000.