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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 02/15/2000 - FIRST READING OF ORDINANCE NO. 20, 2000, APPROVING AGENDA ITEM SUMMARY ITEM NUMBER: 18 DATE: February 15, 2000 FORT COLLINS CITY COUNCIL STAFF: Helen Matson SUBJECT: First Reading of Ordinance No. 20,2000,Approving the Terms of the City's Lease of the Building at 405 Canyon Avenue. 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 405 Canyon Avenue and will permit the Latimer 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 remain tax exempt,state law requires that the Council approve the terms of the lease by Ordinance. Since December 1994,the City has been leasing the building at 405 Canyon Avenue(2,577 square feet)for the Human Rights Office and the Neighborhood Resources Office.The previously approved lease expired November 30, 1999. Staff has renegotiated the lease to continue for an additional five years. The Lease Agreement commenced on January 1, 2000 and continues for successive annual terms through December 31,2004,with the City having the option to terminate at each anniversary date if sufficient funds are not budgeted. The rental for this facility is $2,630 per month, which equates to $12.75/square foot. This rental will be in effect for the first two years of the lease. Each of the remaining renewals terms will be increased by the annual Consumer Price Index. The City will be responsible for the utilities,custodial and carpet services,snow removal,and insurance. The Landlord is responsible for major building maintenance and ground maintenance. ORDINANCE NO. 20, 2000 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROVING THE TERMS OF THE CITY'S LEASE OF THE BUILDING AT 405 CANYON AVENUE WHEREAS, the City intends to continue leasing 2,577 square feet of office space at 405 Canyon Avenue, Fort Collins, Colorado (the "Property"), pursuant to a Lease Agreement dated December 15, 1999, between the City and the owners of the Property, Madge Goddard, Renee Goddard and Mark Goddard(the"Lease Agreement"); and WHEREAS, under the Lease Agreement,the gross annual rent is $32,856; and WHEREAS,the original term of the Lease Agreement commenced on January 1,2000,and terminates on the 31 st day of December, 2000, and will be automatically renewed by the City for four one-year successive terms,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,which is on file and available for public inspection in the Office of the City Clerk,the terms of which include an initial lease period of one year with four one-year renewal terms, at a gross annual rent of$32,856, adjusted at the commencement of the third renewal for inflation,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 i 405 CANYON BUILDING LEASE LOCATION MAP ■ • G ' lid it i m MAGNOLIA STREET S TE LINCOLN CENTER BLOCK i i N W E S