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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 02/15/2000 - RESOLUTION 2000-39 AUTHORIZING THE LEASE OF 304 AN AGENDA ITEM SUMMARY ITEM NUMBER: 29 FORT COLLINS CITY COUNCIL DATE: February 15, 2000 STAFF: Ron Mills SUBJECT: Resolution 2000-39 Authorizing the Lease of 304 and 304'/z North Howes Street. I i RECOMMENDATION: Staff recommends adoption of the Resolution. FINANCIAL IMPACT: If these leases continue for the full two-year period, rent collected will result in approximately Thirty-Six Thousand Six Hundred Dollars($36,600)in unanticipated revenue to the General Fund- Real Property Lease Budget. The tenants will pay all maintenance and utility expenses. 0 EXECUTIVE SUMMARY: The City has entered into an agreement to purchase Lot 15 Block 33 with a scheduled closing date of February 28,2000. The lot is being purchased as part of the Civic Center Master Plan,and is the only parcel on Block 33 that is not currently owned by the City. Currently, there are two leases in effect on the property. One is a residence lease of 304 North Howes Street and one is a business lease for the structure at 304'/z North Howes Street. The City's use of this block is still being planned; therefore, staff would like to continue the lease with the current residential tenant and negotiate a new lease for the business space for a period of up to two years, with the City having the option to terminate at any time with a sixty-day notice to the tenants. The lease term would remain as it currently is for the residence at$775 per month and lease the business for at least$750 per month. The proposed lease agreements would be ready to be signed and become effective at the closing for the purchase of the land. RESOLUTION 2000-39 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE LEASE OF 304 AND 304 %:NORTH HOWES STREET WHEREAS,the City of Fort Collins has entered into an agreement to purchase the property legally described as Lot 15 Block 33,Fort Collins,Colorado and also known as 304 and 304'/2 North Howes Street (the"Property"); and WHEREAS, the residence at 304 North Howes Street is shown as "Residence" on Exhibit "A" attached hereto; and WHEREAS, the business at 304%:North Howes Street is shown as 'Business" on Exhibit "A"• and WHEREAS,the Agreement for the purchase of this Property has a closing date of February 28, 2000; and WHEREAS, the time frame for the redevelopment of the Property is not known and continued rental of these facilities will generate unanticipated revenue until redevelopment occurs; and • WHEREAS,staff plans to negotiate a new lease for the Residence with the current tenant for a period of up to two years at a monthly lease rate of$775 per month,adjusted annually for inflation, with the City having the option to terminate the lease at any time with a sixty-day notice to the Tenant; and WHEREAS, staff plans to negotiate a new lease for the Business for a period of up to two years at a monthly lease rate of at least$750 per month,adjusted annually for inflation,with the City having the option to terminate the lease at any time with a sixty-day notice to the Tenant; 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 Council hereby finds that the lease of the Residence and the Business as described herein is in the best interests of the City. Section 2. That the City Manager is hereby authorized to execute lease agreements consistent with the terms of this Resolution for the lease of the Residence and the Business. Passed and adopted at a regular meeting of the City Council held this 15th day of February, A.D. 2000. Mayor ATTEST: City Clerk EXHIBIT "A" LOT 15 BLOCK 33 304 & 304 1/2 N . HOWES STREET LOCATION MAP CHERRY STREET Car Barn w C}.� Z O cl O O Z Z Site tot 15 : .. MAPLE STREET N W E S