HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 06/07/2005 - FIRST READING OF ORDINANCE NO. 062, 2005, APPROVIN ITEM NUMBER: 15
AGENDA ITEM SUMMARY DATE: June 7, 2005
FORT COLLINS CITY COUNCIL STAFF: Helen Matson
Patrick Rowe
SUBJECT
First Reading of Ordinance No. 062, 2005, Approving the Terms of the City's Lease of Building 15, Old
Town Square, Fort Collins, Colorado.
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. As the lease was negotiated as a triple net lease,removal from the
tax rolls would benefit the City. If the leased property remains on the tax rolls,the City would be responsible
for paying 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 Services has leased the present Old Town Square location since January 1, 2000,which term
ended and then renewed for one year on January 1,2004. The present lease term commenced January 1,2005
and will expire December 31,2009. Lease payments under the new lease will include base rent,common area
maintenance("CAM")expenses,insurance,utilities and taxes(should they apply). Base rent for the first year
shall be$11.00 per square foot based on 2,075 square feet. The second and third year base rents shall escalate
to$12.00 per square foot. The fourth year will escalate to$13.00 per square foot,and the fifth year to$14.00.
This escalation was based upon a negotiated amount in line with market rents. CAM,insurance and utilities
are based on the City's pro rata share. For the first year the estimated prorated monthly charges amount to
$1.90 per square foot for CAM, $.28 per square foot for insurance, and $2.13 per square foot for utilities.
ATTACHMENTS
1. Location Map
1
Police Services District One
Office Lease
Location Map
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ORDINANCE NO. 062, 2005
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 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 for the first year of the lease
is $22,924; the second and third years the rent increases to $24,900 annually; the fourth year is
$26,975; and the fifth year is $29,050; and
WHEREAS, the term of the Lease Agreement commenced on January 1, 2005 and
terminates on the 31 st day of December, 2009, 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 a lease
term of five years at an initial gross annual rent of $22,824, contingent upon the annual
appropriation of funds sufficient to meet the City's obligations under the Lease Agreement, along
with such other terms as the City Manager in consultation with the City Attorney determines to be
in the best interests of the City.
Introduced,considered favorably on first reading,and ordered published this 7th day of June,
A.D. 2005, and to be presented for final passage on the 5th day of July, A.D. 2005.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading this 5th day of July, A.D. 2005.
Mayor
ATTEST:
City Clerk