HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 12/19/2006 - SECOND READING OF ORDINANCE NO. 196, 2006, AUTHORI ITEM NUMBER: 11
AGENDA ITEM SUMMARY DATE: December 19, 2006
FORT COLLINS CITY COUNCIL STAFF: Randy Hensley
SUBJECT
Second Reading of Ordinance No. 196,2006,Authorizing the City Manager to Enter into a Second
Amendment to the Long-Term Lease for Civic Center Village Adjacent to the Civic Center Parking
Structure.
RECOMMENDATION
Staff recommends adoption of the Ordinance on Second Reading.
EXECUTIVE SUMMARY
This Ordinance, unanimously adopted on First Reading on December 5, 2006, amends the Civic
Center Village Ground Lease to clarify various maintenance responsibilities and to provide two
reserved parking spaces in the Civic Center Parking Structure for the Civic Center Village
leaseholder. This amendment is needed to clarify the maintenance requirements of the lease, to
enhance the business partnership between the leaseholder and the City, and to ensure an ongoing
business relationship.
ITEM NUMBER: 17
AGENDA ITEM SUMMARY DATE: December 5, 2006
FORT COLLINS CITY COUNCIL STAFF: Randy Hensley
SUBJECT
First Reading of Ordinance No. 196, 2006, Authorizing the City Manager to Enter into a Second
Amendment to the Long-Term Lease for Civic Center Village Adjacent to the Civic Center Parking
Structure.
RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
EXECUTIVE SUMMARY
Staff is proposing to amend th ivic ter VP
yihe
to clarify various maintenance
responsibilities, and to provid wo res ed pCivic Center Parking Structure
for the Civic Center Village le der. ed to clarify the maintenance
requirements of the lease,to enhance the business partnership between the leaseholder and the City,
and to ensure an ongoing business relationship.
BACKGROUND
The City completed and opened the Civic Center Parking Structure in 1999. The structure includes
15,000 square feet of commercial space, called the Civic Center Village. The City(the landlord)
leases the Civic Center Village to a private party (the tenant) which in turn sub-leases spaces to
commercial enterprises. The terms and conditions of the lease are defined in a document called the
Ground Lease. The amendment to change the lease to clarify maintenance requirements and to
provide reserved parking spaces for the tenant requires City Council approval.
The original ground lease spel out G]P'h
r o ibilities that must be performed
by the leaseholder. However, maintts wo items were not clear. First,the
sewer line that serves the lease er te king structure, and it was unclear
if the maintenance of that line belonged to the City or to the leaseholder. This amendment clarifies
that the sewer line maintenance belongs to the leaseholder. Second,the original lease specified that
the exterior west wall of the leasehold property is the responsibility of the leaseholder up to a height
of fourteen feet, seven inches, but awnings on that wall which were installed for the benefit of the
leaseholder were mounted above that height. This amendment specifies that routine maintenance
of the awnings will be equally split by the City and the leaseholder, and that major changes to the
awnings will be the sole responsibility of the leaseholder.
December 5, 2006 -2- Item No. 17
The current leaseholder has requested that two parking spaces be reserved for use of the tenant in
the Civic Center Parking Structure in order to expedite the conduct of business in the Civic Center
Village. Staff feels it is in the best interest of the City to grant this request due to the unique
business relationship betweenCthi 1Yienter
(tenant). The leaseholder will
absorb the cost of installing th aces, it um fee for the spaces to reflect
the additional market value o hen aredal use permit. The location of
the reserved parking spaces we the Parking Structure in a place
to be determined by Parking Services. The spaces will be signed to indicate they are reserved, and
will be enforced by Parking Services in a manner similar to other reserved spaces in the parking
structure. The reserved parking spaces will be available to the tenant for the term of the Ground
Lease.
The City's Parking Services Department is responsible for the administration of the Ground Lease,
and will also administer the terms of the new maintenance requirements and the reserved parking
spaces.
ORDINANCE NO. 196, 2006
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE CITY MANAGER TO ENTER INTO
A SECOND AMENDMENT TO THE LONG-TERM LEASE
FOR CIVIC CENTER VILLAGE ADJACENT TO
THE CIVIC CENTER PARKING STRUCTURE
WHEREAS,the City and Phelps Program Management, LLC,a Delaware Limited Liability
Company("PPM"), entered into that certain ground lease dated September 14, 1998, as amended
by the First Amendment to Ground Lease by and between them and dated November 7, 2000
(together referred to as the"Ground Lease"), for the lease to PPM of the ground floor area along the
western face of the Civic Center Parking Structure building("Civic Center Village");
WHEREAS,on December 1,2003,PPM assigned to Post Modem Development,Inc.("Post
Modern"),PPM's leasehold interest in the Civic Center Village,and all PPM's rights and obligations
set forth in the Ground Lease, pursuant to that certain Assignment of Interest in Ground Lease and
General Warranty Deed to Improvements and Assumption by Grantee", by and between PPM and
Post Modem; and
WHEREAS, the City Manager has negotiated with Post Modern an amendment to the
Ground Lease for the purpose of providing a specific parking benefit to Post Modem in connection
with Post Modern's use of Civic Center Village; and
WHEREAS, the City Manager has negotiated additional amendment provisions to clarify
the respective rights and responsibilities related to the awnings that were previously installed by
PPM along the western face of the Civic Center Parking Structure, above Civic Center Village;and
WHEREAS, the City Manager has further negotiated amendment language to confirm the
City's understanding regarding responsibility for maintenance and repair of certain utility service
lines installed on the Civic Center Parking Structure property for the benefit of Civic Center Village;
and
WHEREAS, pursuant to the Council's authority in Section 23-111 and Section 23-114 of
the City Code, the City Council has previously adopted Ordinance No. 145, 1998, authorizing the
Ground Lease, and Ordinance No. 103, 2001, approving and ratifying the First Amendment to the
Ground Lease; and
WHEREAS, the City Manager has requested that the Council authorize the execution of a
Second Amendment to Ground Lease, in substantially the form attached hereto as Exhibit A and
incorporated herein by this reference(the"Second Amendment"), to modify the Ground Lease for
Civic Center Village as described above.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1. That the City Council hereby finds that the Ground Lease,as modified by the
Second Amendment, is for the benefit of and in the best interest of the City.
Section 2. That the City Council hereby authorizes the City Manager to execute the
Second Amendment, together with such additional terms and conditions as the City Manager, in
consultation with the City Attorney,determines to be necessary or appropriate to protect the interests
of the City.
Introduced, considered favorably on first reading, and ordered published this 5th day of
December, A.D. 2006, and to be presented for final passage on the 19th day of December, A.D.
2006.
1
Mayor
ATTEST:
ki �� .: 1.� A A
City Clerk
Passed and adopted on final reading on the 19th day of December, A.D. 2006.
Mayor
ATTEST:
City Clerk