HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 08/17/1999 - FIRST READING OF ORDINANCE NO. 134, 1999, APPROVIN AGENDA ITEM SUMMARY ITEM NUMBER: 14
DATE: August 17, 1999
FORT COLLINS CITY COUNCIL STAFF: Helen Matson/
10 Tom Frazier
SUBJECT:
First Reading of Ordinance No. 134, 1999,Approving the Terms of the Lease for the City's Lease
of the Building at 220 East Olive Street/235 Mathews Street 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 220 East Olive Street/235
Mathews Street 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 to pay the taxes.
0
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.
The City's Transportation Department leases the building at Olive and Mathews Streets. The current
lease expires August 11, 1999. Staff has renegotiated the lease to continue until the Transportation
Department moves into the new City office building upon its completion. The term of this Lease
Agreement commences on September 1, 1999 and continues until August 31, 2002, with the City
having the option to terminate at any time with a six-month notice of termination. The lease is for
10,384 square feet of office space and 2,040 square feet of warehouse space. The gross rental for
this facility is $11,624.17 per month. This breaks down to $12.50/square foot for the office space,
which is comparable to other downtown office gross leases, and$4.50/square foot for the warehouse
space,which is comparable to warehouse leases in Fort Collins. Expenses paid by the Landlord are
structural insurance,building and grounds maintenance,custodial,and utilities. The only other City
responsibility will be for personal property insurance. The lease will be increased by the annual
Consumer Price Index at the end of each year.
ORDINANCE NO. 134, 1999
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROVING THE TERMS OF THE LEASE FOR THE CITY'S LEASE OF
THE BUILDING AT 220 EAST OLIVE STREET/235 MATHEWS STREET
FORT COLLINS, COLORADO
WHEREAS,the City intends to continue leasing 10,384 square feet of office space and 2,040
square feet of warehouse space at 220 East Olive Street/235 Mathews Street,Fort Collins,Colorado
(the "Property"),pursuant to a Lease Agreement between the City and the owners of the Property,
Abdelnour Family Limited Liability Partnership(the "Lease Agreement"); and
WHEREAS, under the Lease Agreement,the gross annual rent is$139,490; and
WHEREAS,the negotiated term ofthe Lease Agreement commences September 1, I999 and
expires August 31, 2002, or upon the City issuing a six-month notice of termination; 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 negotiated 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 THE
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
period of three years,at a gross annual rent of$139,490, adjusted annually for inflation,contingent
upon the annual appropriation of funds sufficient to meet the City's obligations under the Lease
Agreement.
i
Introduced, considered favorably on first reading, and ordered published this 17th day of
August, A.D. 1999,and to be presented for final passage on the 7th day of September,A.D. 1999.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading this 7th day of September, A.D. 1999.
Mayor
ATTEST:
City Clerk