HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 02/20/2001 - RESOLUTION 2001-23 AUTHORIZING THE SUBLEASE OF A P {
AGENDA ITEM SUMMARY ITEM NUMBER: 33
DATE: February 20, 2001
FORT COLLINS CITY COUNCIL
STAFF: Marty Heffernan
SUBJECT:
Resolution 2001-23 Authorizing the Sublease of a Portion of the Old Fort Collins High School at
1400 Remington by the Boys and Girls Clubs of Larimer County.
RECOMMENDATION:
Staff recommends adoption of the Resolution.
FINANCIAL IMPACT:
Rent collected from this sublease will result in a total of$35,616 in 2001 ($2,968/month). This
revenue helps to offset expenses in the Recreation Fund for operation of the Youth Activity
Center at 1400 Remington. If Colorado State University agrees to extend the lease of 1400
Remington for a portion of 2002, this sublease will also be extended for the term of that
extension. Any increase in rent to Boys and Girls Club is proportionate to the rent increase to
the City from Colorado State University.
EXECUTIVE SUMMARY:
The City began occupying a portion of the previous Fort Collins High School at 1400 Remington
as a youth and teen center in September, 1995. Space was leased from the Poudre School
District, which sold the property to Colorado State University (CSU) in September of 1997. As
of January 1, 1999, the City now leases this space directly from CSU.
The City has subleased a portion of its space at this facility to the Boys and Girls Clubs of
Larimer County since September 1995. Staff seeks to continue this sublease.
The sublease with Boys and Girls Club, which is attached to the Resolution, has an initial term
that extends through December 31, 2001, and also provides for an extension of the sublease into
2002 by addendum. If CSU determines that the space the City leases from CSU will be available
into 2002, it is expected that the sublease with the Boys and Girls Club would be extended for
the same period.
• RESOLUTION 2001-23
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE SUBLEASE OF A PORTION
OF THE OLD FORT COLLINS HIGH SCHOOL AT 1400 REMINGTON
BY THE BOYS AND GIRLS CLUB OF LARIMER COUNTY
WHEREAS,Colorado State University ("CSU")owns that certain property located at 1400
Remington Street in Fort Collins, Colorado, known as the Old Fort Collins High School (the"Old
High School"); and
WHEREAS, the City of Fort Collins currently leases a portion of the Old High School,
known as the Youth Activity Center (the "YAC"), from CSU for use in providing recreational
services and activities for primarily youth and teens of Fort Collins; and
WHEREAS, the current lease of the YAC expires at the end of 2001, but staff is currently
in the process of negotiating a continuation of that lease for a period mutually acceptable to the City
and CSU; and
WHEREAS,the City currently subleases,and wishes to continue to sublease,portions of the
YAC to the Boys and Girls Club of Larimer County (the "Club"); and
• WHEREAS,the Club provides services on behalf of the City to local youth,under a services
agreement with the City; and
WHEREAS, the Club also provides additional youth recreational services, beyond those
provided under contract for the City; and
WHEREAS, the Club wishes to use those certain portions of the YAC (the "Club Sublease
Area") more particularly described in the attachment to the proposed sublease agreement which is
attached hereto as Exhibit "A" and incorporated herein by this reference (the "Sublease
Agreement"), in order to provide youth recreational services, and has negotiated with City staff a
sublease agreement permitting such use; and
WHEREAS,the Sublease Agreement is permitted under the terms of the City's lease of the
YAC from CSU (Exhibit "B"); and
WHEREAS,the Sublease Agreement provides for the possible extension of the sublease into
2002 by written addendum, and requires that any written addendum specify the lease payment due
for the extension period; and
WHEREAS, if the City's lease is extended into 2002 and the sublease is also extended, the
sublease payment due from the Club shall be adjusted in 2002 in proportion to any increase in lease
payments due from the City to CSU for that period; and
WHEREAS, City staff has determined that the proposed sublease of certain portions of the
YAC to the Club will not interfere with or impair the City's intended uses of the YAC; and
WHEREAS, under Section 23-114 of the Code of the City of Fort Collins, the Council is
authorized to lease any and all interests in real property owned in the name of the City,provided that
Council first finds that the lease is in the best interests of the City.
NOW,THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1. That the sublease by the City of the Club Sublease Area to the Club, under the
terms and conditions set forth herein and in the Sublease Agreement, is in the best interests of the
City of Fort Collins.
Section 2. That the City Manager is hereby authorized to enter into the Sublease Agreement
subleasing to the Boys and Girls Club of Larimer County the Club Sublease Area through December
31,2001,together with such other related provisions determined necessary to protect the interest of
the City by the City Manager, in consultation with the City Attorney.
Section 3. That the City Manager is hereby authorized to enter into one or more addenda to
the Sublease Agreement in order to extend the Sublease into 2002,provided that no such addendum
shall extend the Sublease Agreement beyond December 31,2002,and that any such addendum shall
include an increase in sublease payments proportional to any increase in City lease payments,
together with such other related provisions determined necessary to protect the interest of the City
by the City Manager, in consultation with the City Attorney.
Passed and adopted at a regular meeting of the City Council held this 20th day of February,
A.D. 2001.
Mayor
ATTEST:
City Clerk
EXHIBIT "A"
• SUBLEASE AGREEMENT
THIS SUBLEASE AGREEMENT is made and entered into this_day of
2001, by and between THE CITY OF FORT COLLINS, COLORADO, a municipal corporation
(hereinafter referred to as"the City") as sublessor and the Boys and Girls Clubs of Latimer County
(hereinafter referred to as "Lessee") as sublessee.
WITNESSETH :
WHEREAS, the City is leasing that certain parcel of real estate, together with the
improvements located thereon, situated in the County of Latimer, State of Colorado, which is
described on attached Exhibit"A", incorporated herein by this reference; and
WHEREAS,the City wishes to sublease a portion of the property described in Exhibit "A"
to the Lessee, which portion is described on attached Exhibit`B" which is incorporated herein by
this reference(hereinafter referred to as"the Property")on the terms and conditions provided herein,
and the Lessee desires to sublease the Property from the City.
NOW, THEREFORE, in consideration of the mutual covenants, promises and agreements
herein contained, as well as other good and valuable consideration, the receipt and adequacy of
which are hereby acknowledged, the parties covenant, promise and agree as follows:
1. Sublease of Property. The City hereby subleases,demises and lets unto the Lessee,
and the Lessee hereby hires and takes from the City the Property.
2. Term of Sublease. The term of this Sublease shall be from the 1st day of January
2001, and continuing until 12:00 midnight on the 31st day of December, 2001. The parties may
extend this agreement for up to twelve(12) additional months by written addendum, which written
addendum shall specify the lease amount due for any and all such extension periods.
3. Termination. The City may terminate this Sublease at any time by and upon giving
the Lessee not less than fifty-five (55) days written notice of such termination.
4. Holding Over. Any holding over by the Lessee, whether recognized by the City or
not, after the expiration or termination of any term of this Sublease, shall create merely a tenancy
at will, terminable on three (3) days notice.
5. Rent. The Lessee shall pay rent to the City of Two Thousand Nine Hundred and
Sixty Eight Dollars ($2,968.00)per month due on or before the 5th day of each month of the Lease
during 2001.
6. Use of the Property. The Lessee shall use the Property only for a recreation center
for young persons and other related uses as approved by the City. The Lessee shall not use the
Property in any manner that violates any applicable law,rule, ordinance or regulation. The Lessee
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shall not permit any nuisance,disorderly conductor undue noise at the Property having any tendency
to annoy or disturb any persons owning or occupying property adjacent to the Property.
7. Property Maintenance.Repairs and Operation.The Lessee shall maintain the Property
in good,clean and orderly condition at all times during the term of this Agreement. Lessee is entitled
to such maintenance, repair and similar services as are actually provided by Colorado State
University ("CSU") as owner of the Property.
8. Alterations. The Lessee shall not make or cause to be made any alterations,additions
or improvements to or of the Property or any part of the Property,or attach any fixtures or equipment
to the Property, without first obtaining the City's written consent, as provided in the City's lease
agreement for the Property with CSU. Any alterations,additions or improvements to the Property
approved by the City will be made by the Lessee at its sole cost and expense unless otherwise agreed
to in writing by the parties.
9. Mechanic's Liens. The Lessee will pay all costs and charges for work done by it or
caused to be done by it,in or to the Property,and for all materials furnished in connection with such
work. The Lessee will indemnify the City and CSU against and hold the City and CSU harmless
from all liability,liens,claims and demands on account of such work. At least twenty-five(25)days
prior to the commencement of any work in or to the Property, the Lessee will give the City written
notice of the proposed work and the names and addresses of the persons supplying labor and/or
materials for the proposed work.
10. Taxes.Assessments and Utility Charges. In the event that the Property or any portion
thereof shall, for any reason,be deemed subject to taxation, assessments or charges lawfully made
by any governmental body, the Lessee shall pay all such taxes, assessments and governmental
charges when due. The Lessee shall also pay all telephone charges incurred by the Lessee. CSU is
obligated to pay for and provide all other utilities, pursuant to its Lease Agreement with the City,
dated December 18, 1998.
11. Insurance. The Lessee shall, at its sole expense, cause commercial general liability
insurance to be carried and maintained with respect to the Property and all improvements thereon
in an amount not less than Five Hundred Thousand Dollars ($500,000.00) combined single limits.
Said policy shall cover bodily injury, including death to persons, personal injury and property
damage liability. Such coverage shall include, without limitation, legal liability of the insured for
property damage, bodily injuries and deaths of persons in connection with the operation or use of
the Property,including acts or omissions of the Lessee and protection against liability for non-owned
and hired automobiles. Such coverage shall also include comprehensive automobile liability
insurance,contractual liability and workmen's compensation insurance for employees of the Lessee.
All policies of insurance carried by the Lessee shall name the Lessee as an insured party and
shall name the City as co-insured and loss payee on the policy. The policy or policies shall contain
a provision that they cannot be canceled or materially altered,either by the insured or the insurance
company, until fifteen (15) days prior written notice thereof is given to the Lessee and the City.
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Upon issuance or renewal of any such insurance policy, the Lessee shall furnish a certified copy or
duplicate original of such policy or renewal with proof of premium payment to the City. Any
insurance policy purchased by the Lessee must be written by an insurance carrier authorized to do
business in the State of Colorado and the carrier must be acceptable to the City.
The Lessee's obligation to carry insurance as provided herein may be brought within the
coverage of a "blanket" policy of insurance, carried and maintained by the Lessee so long as the
policy segregates the amount of coverage applicable to the Property. In the event the Lessee fails
to carry the insurance required herein,the City may procure such insurance and pay the premiums
for it. In such event, the Lessee shall repay the City for said insurance, together with interest and
the City's costs and expenses incurred in procuring the insurance upon demand by the City.
12. Damage.Destruction and Condemnation. If,prior to the termination of this Sublease,
the Property is destroyed, in whole or in part, or is damaged by fire or other casualty, or title to, or
the temporary or permanent use of, the Property or any portion thereof shall be taken under the
exercise of the power of eminent domain, this Sublease shall terminate at the option of the City.
13. Disclaimer of Warranties. The Lessee shall take the Property in its"as is"condition.
The City makes no warranty or representation, either express or implied, as to the value, design,
condition or merchantability of the Property or its fitness for any particular use. In no event shall
the City be liable for any incidental, indirect, special or consequential damages in connection with
or arising out of the furnishing, functioning or the use of the Property by the Lessee.
. 14. Requirements of Law. During the Sublease term, the Lessee shall observe and
comply promptly with all then current and future laws, ordinances, resolutions, orders,covenants,
restrictions, rules and regulations of the federal, state and local governments, and of all courts or
other governmental authorities having jurisdiction over the Property or any portion thereof,whether
the same are in force at the commencement of the Sublease term or may be in the future passed,
enacted or directed.
15. Assignment and Subleasing. The Lessee shall not assign this Sublease in whole or
in part and shall not sublease all or any part of the Property.
16. Siens and Advertising. The Lessee shall not erect any signs on the Property without
the City's prior written consent. Such consent may be given or withheld in the City's sole discretion.
17. Nuisance. The Lessee shall not permit the existence of any nuisance on the Property
and shall keep the Property in a clean and safe condition and free of any explosive, flammable or
combustible material which would increase the risk of fire. The Lessee shall not handle or store any
dangerous or potentially dangerous materials or any hazardous or toxic materials, as defined under
state and/or federal law, and shall not permit the accumulation of junk, debris, or other unsightly
materials. The Lessee shall be allowed to store up to eight (8) gallons total of motor oil and
antifreeze on the property in a manner in full compliance with all applicable laws, regulations, and
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policies and consistent with best management practices for the storage,handling and transportation
of such substances.
18. Environmental Concerns. The Lessee shall not create or permit any condition on the
Property that could present a threat to human health or the environment. The Lessee, to the extent
permitted by law, shall indemnify and hold harmless the City from any suit or claim arising out of
any damages alleged to have been caused, in whole or in part, by an unhealthful, hazardous or
dangerous condition caused by,contributed to or aggravated by the Lessee or by Lessee's violation
of any laws, ordinances,regulations or requirements pertaining to solid or other wastes,chemicals,
oil and gas, toxic, corrosive or hazardous materials, air, water (surface or groundwater) or noise
pollution of the storage, handling,use or disposal of any such material. The Lessee shall be liable
for all expenses which may be required to remedy any condition on the Property caused by the
Lessee in violation of the provisions of this section. The Lessee agrees that statutory limitation
periods on actions to enforce these obligations shall not be deemed to commence until the City
discovers any such health or environmental impairment, and the Lessee hereby knowingly and
voluntarily waives the benefits of any shorter limitation period.
The City shall have the right,but not the duty,to enter upon the Property from time to time
to inspect the Property for environmental contamination and may conduct soil and groundwater
testing. Any such testing or inspections shall be at the City's expense.
19. Default. If the Lessee shall neglect or fail to timely and properly perform any
covenant, condition or provision of this Sublease, the Lessee shall be in default hereunder. If the
Lessee is in default, or if the Lessee is adjudicated as bankrupt, files a petition in bankruptcy or
makes an assignment for the benefits of its creditors, the City, at its election, may:
(1) Give the Lessee written notice of the City's intention to terminate this
Sublease on a specified date,and Lessee's right to possession of the Property
shall cease and this Sublease shall terminate on the specified date; or
(2) The City may re-enter and take possession of the Property or any part thereof
and repossess the same as the City's former estate and expel the Lessee and
those claiming through or under the Lessee and remove the effects of both or
either(forcibly, if necessary).
The City's right to terminate this Sublease or to re-enter and take possession of the property
as set forth above shall be remedies in addition to all other remedies provided to the City, in law or
equity, available to enforce the City's rights and/or collect damages sustained due to the lessee's
default hereunder.
20. Removal of Property. Upon the expiration or termination of this Sublease, or upon
the City's repossession of the Property, the Lessee will surrender the Property in good order and
condition, ordinary wear and tear excepted. The Lessee shall remove all of its personal property
from the Property. The Lessee will fully repair any damage caused by the removal of such property.
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• Any of the Lessee's property not immediately removed will conclusively be deemed to have been
abandoned by the Lessee and may be appropriated,sold,stored,destroyed or otherwise disposed of
by the City without notice to the Lessee or to any other person and without obligation to account for
them. The Lessee will pay the City all expenses incurred in connection with the City's disposal of
such property,including,without limitation,the costs of repairing any damage to the Property or its
improvements caused by the removal of such property. The Lessee's obligation to observe and
perform this covenant will survive the end of this Sublease.
21. Attorneys Fees. In the event that either party shall default under any of the provisions
of this Sublease and the non-defaulting party shall commence litigation to enforce this Sublease,the
defaulting party shall be liable for all costs,expenses and reasonable attorneys fees incurred by the
non-defaulting party concerning such litigation.
22. Notices. All notices,certificates or other communication hereunder shall be deemed
given when hand-delivered or mailed by certified or registered mail,return receipt requested,postage
prepaid, addressed to the following:
If to the City: Ms. Peggy Bowers
City of Fort Collins
214 North Howes Street
Fort Collins, CO 80521
• If to the Lessee: [fill in name]
Boys and Girls Clubs of Latimer County
1400 Remington
Fort Collins, CO 80524
23. No Remedy Exclusive. No remedy herein conferred upon or reserved to a party is
intended to be exclusive,and every such remedy shall be cumulative and shall be in addition to every
other remedy given hereunder or ow or hereafter existing at law or in equity. No delay or omission
to exercise any right or power accruing upon any default shall impair any such right to power or shall
be construed to be a waiver thereof, but any such right and power may be exercised from time to
time and as often as may be deemed expedient. In order to entitle the City or the Lessee to exercise
any remedy reserved, it shall not be necessary to give any notice, other than such notice as may be
specifically required by this Sublease.
24. No Waiver. In the event that any covenant contained herein should be breached by
a party and thereafter waived by the other parties, such waiver shall be limited to the particular
breach so waived and shall not be deemed to waive any other breach hereunder. In addition, the
failure of one party to insist upon strict performance of the terms, conditions, covenants and
agreements herein contained or any other of them shall not constitute or be considered as a waiver
or relinquishment of that party's rights thereafter to enforce any such default or term, condition,
covenant or agreement.
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25. BindingE ffect. This Sublease shall inure to the benefit of and shall be binding upon
the City, Lessee and their respective heirs, successors, administrators and assigns.
26. Severability. In the event that any provision hereof shall be held invalid or
unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render
unenforceable any other provision hereof.
27. Applicable Law. The laws of the State of Colorado shall be applied to this
construction, interpretation, execution and enforcement of this Sublease.
28. Captions. The captions or headings herein are for convenience only and in no way
define, limit or describe the scope or intent of any provisions or sections hereof.
29. Construction. Entire A reement. This Sublease shall be construed according to its
fair meaning and as if prepared by all of the parties hereto and shall be deemed to be and contain the
entire understanding and agreement between the parties. There should be deemed to be no other
term,condition,promise,understanding,statement or representation,express or implied,concerning
this Sublease unless set forth in writing and signed by all parties.
30. No Partnership. Nothing contained herein shall be deemed or construed by the parties
hereto nor by any third party as creating the relationship of principal and agent or a partnership or
a joint venture between the parties hereto,it being agreed that none of the provisions set forth herein,
nor any acts or the parties herein,shall be deemed to create a relationship between the parties hereto
other than the relationship of sub-lessor and sub-lessee.
31. Indemnity. The Lessee agrees,to the extent permitted by law,to indemnify and save
the City and harmless against and from all claims by or on behalf of any person, firm, corporation
or other entity arising from Lessee's or Lessee's agents guests or invitees' use or occupation of the
Property, any condition on the Property or from any action performed under this Sublease.
32. Limited Use of Small Gym. The small gym, as shown on Exhibit`B", may be used
by the Lessee from 2:30 p.m. to 7:00 p.m.Monday through Thursday and 2:30 p.m. to 9:00 p.m. on
Friday.
33. Locker Rooms. The locker rooms on the first floor of the Property, as described on
Exhibit"A"are not part of Lessee's subleased property. However,Lessee shall have the right to use
these locker rooms along with the City, and on the same basis as these locker rooms are available
for use by the general public during the term of this Sublease.
6
. IN WITNESS WHEREOF,the parties hereto have entered into this Sublease Agreement the
day and year first above written.
THE CITY OF FORT COLLINS, COLORADO,
A Municipal Corporation
By:
John F. Fischbach, City Manager
ATTEST:
City Clerk
APPROVED AS TO FORM:
Assistant City Attorney
LESSEE: BOYS AND GIRLS CLUBS OF
• LARIMER COUNTY
By:
[fill in name], Board President
ATTEST:
Board Secretary
CONSENTED TO BY THE STATE BOARD OF AGRICULTURE,
through Colorado State University
By:
Name/Title:
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EXHIBIT "B"
(2 of 2)
�Y
Facilities Management
Fort Collins.Colorado 80523-6030
December 18, 1998
John Fischbach
City Manager
City of Fort Collins
300 LaPorte Avenue
Fort Collins, CO 80521
John:
In accordance with paragraph 8 of the Lease Agreement for Use of Space at the Old Fort
Collins High School with Colorado State University, the University hereby consents to a
sublease with the Boys and Girls Club.
If you have any questions, please call Nancy Hurt at 491-0005.
Sincer
Ronald A. Baker
Director, Facilities Management
cc: Nancy Hurt
Jim White
Jean Helburg
DECEIVED
DEC 21 1998
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