HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 02/15/2000 - FIRST READING OF ORDINANCE NO. 19, 2000, APPROVING AGENDA ITEM SUMMARY ITEM NUMBER: 17
DATE: February 15, 2000
FORT COLLINS CITY COUNCIL !
STAFF: Helen Matson
SUBJECT:
First Reading of Ordinance No. 19,2000,Approving the Terms of the City's Lease of Building 15,
Old Town Square.
RECOMMENDATION:
Staff recommends adoption of the Ordinance on First Reading.
FINANCIAL IMPACT:
Adoption of this Ordinance authorizes the terms of the City's lease of Building 15,Old Town Square
and will permit the Larimer County Treasurer's Office to remove the leased property from the tax
rolls in accordance with C.R.S. Sections 31-15-801 and 802. If the leased property remains on the
tax rolls, the City would be responsible for paying the taxes.
EXECUTIVE SUMMARY:
In order for this property to become tax exempt,state law requires that the Council approve the terms
of the lease by Ordinance.
Since February 1996, the City has been leasing space in Old Town Square for the Police Services
District One office. Police staff and the Old Town Square have been working together to find a new
space in Old Town to replace their basement location. A new space became available and the City
entered into a new Lease Agreement dated December 12, 1999, with a term of five years that
commenced January 1,2000,following a month of tenant finish work. The tenant finish work was
paid for with contributions from the Landlord (Progressive Old Town Square, LLC), the former
tenant,and the City. The new location has 2,075 square feet of office space and is located in the 200
block of Walnut Street. District One houses a Police Museum and office space for officers. The
base rental for the first year of the lease is $18,675, or $9 per square foot, which will be adjusted
annually by the Consumer Price Index. In addition to the base rental, the City will also pay the
Landlord for the common area maintenance,its insurance and utilities. These costs total $3.76 per
square foot, bringing the total price per square foot to $12.76. The only other expense paid by the
City is the janitorial expense. The base rent will increase to $11 per square foot at the
commencement of the third year of the lease.
ORDINANCE NO. 19, 2000
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROVING THE TERMS OF THE CITY'S LEASE OF
BUILDING 15, OLD TOWN SQUARE, FORT COLLINS, COLORADO
WHEREAS, the City intends to lease 2,075 square feet of office space at Building 15, Old
Town Square, Fort Collins, Colorado (the "Property"), pursuant to a Lease Agreement dated
December 12, 1999,between the City and the owners of the Property,Progressive Old Town Square,
LLC (the "Lease Agreement"); and
WHEREAS, under the Lease Agreement, the gross annual rent is $26,485; and
WHEREAS, the term of the Lease Agreement commenced on January 1, 2000, and
terminates on the 31 st day of December, 2004, contingent upon the annual appropriation of funds
sufficient to meet the City's obligations under the Lease Agreement; and
WHEREAS,in order for the Property to continue to be exempt from taxation,C.R.S.Section
31-15-801 requires that the Lease Agreement and the terms thereof be approved by ordinance by the
City Council; and
WHEREAS,the Lease Agreement is presently on file with the office of the City Clerk; and
WHEREAS,the City Council wishes to approve the Lease Agreement by ordinance so that
the Property may be removed from the tax rolls.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS that the City Council hereby approves the Lease Agreement, a copy of which is on file
in the Office of the City Clerk, the terms of which include a lease term of five years at a gross
annual rent of$26,485,adjusted annually by the Consumer Price Index,contingent upon the annual
appropriation of funds sufficient to meet the City's obligations under the Lease Agreement.
Introduced, considered favorably on first reading, and ordered published this 15th day of
February, A.D. 2000, and to be presented for final passage on the 7th day of March, A.D. 2000.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading this 7th day of March, A.D. 2000.
Mayor
ATTEST:
City Clerk