HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 12/21/2010 - SECOND READING OF ORDINANCE NO. 132, 2010, APPROVI DATE: December 21, 2010 AGENDA ITEM SUMMARY
STAFF: Helen Matson FORT COLLINS CITY COUNCIL •
Second Reading of Ordinance No. 132, 2010, Approving the Terms of the City`s Lease of Office Space for Police
District One at 144 North Mason Street.
EXECUTIVE SUMMARY
The Police District One Office moved from Old Town Square to 144 North Mason, Suites 1, 2, and a portion of 3 in
2010. This Ordinance, unanimously adopted on First Reading on December 7, 2010,approves the terms of the lease
dated May 1, 2010, for the new space.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on Second Reading.
ATTACHMENTS
1. Copy of First Reading Agenda Item Summary- December 7, 2010
(w/o attachments)
ATTACHMENT 1
DATE: December 7, 2010 AGENDA ITEM SUMMARY '
STAFF: Helen Matson F F� FORT COLLINSCOUNCILAA
First Reading of Ordinance No. 132,2010,Approving the Terms of the City's Lease of Office Space for Police District
One at 144 North Mason Street.
EXECUTIVE SUMMARY
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The Police District One Office moved from Old Town Square to 144 North Mason, Suites 1, 2, and a portion of 3 in
2010. This Ordinance approves the terms of the"le, ase date JMay,1, 2010�for the new space.
BACKGROUND / DISCUSSION
In order for this portion of the property to become tax exempt, state law requires that the Council approve the terms
of the lease by Ordinance.
Police District One was located in Old Town Square since 1996. The existing lease was due to expire at the end of
December 2009 and since the District One staff had outgrown their rental space, staff was looking for available sites.
Prior to the lease termination date, staff located this new space in the Civic Center Village (ground floor of the Civic
Center Parking Garage). The new space gives District One room for growth, has high visibility and better parking.
As part of the Lease Agreement, the Laridlorrd�cornpleted tenanffinish improvements that included joining the suites.
During the construction period, staff,negotiated'
with the Old Tod wn Squar�e�Landlord to remain on a month-to-month
lease until the new space was available e're_ , nts were completed a\4the Lease Agreement was effective May
1, 2010.
The term of the new lease is one year,with four one-year extensions. The Police District One Office contains 3, 802
square feet. The negotiated lease rate is $12.95/square foot until the fourth year, when the lease rate increases to
$13.34 and the last year increases to $13.76/square foot.
The lease requires that the City pay the appropriate property taxes for the space, if the property remains on the tax
rolls. Once Council approves this Ordinance, staff will present the Ordinance and Lease to the County Assessor's
Office requesting removal of this portion of 144 North Mason Street from the tax rolls.
FINANCIAL / ECONOMIC IMPACTS-,.,, ,/� -� Fr--- � /]
�( - � 11 I l�J \�/�
Adoption of this Ordinance authorizes the terms(of the Cityjs,-lease of 14;4(North Mason Street, Suites 1, 2, and a
portion of 3, and will permit the Larimer`County Assesses Office to removeethe leased office space from the tax rolls
in accordance with C.R.S. Sections 31-15 801 and 802. The current lease agreement from the Landlord requires the
City to pay property taxes, if assessed. If the leased property remains on the tax rolls, the City would be responsible
for paying the taxes.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
ATTACHMENTS �� /� 1� I�r-1���\ /17
1. Location Map
r
ORDINANCE NO. 132, 2010
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROVING THE TERMS OF THE CITY'S LEASE OF OFFICE SPACE FOR
POLICE DISTRICT ONE AT 144 NORTH MASON STREET
WHEREAS, on May 1, 2010, the City and Post. Modern Development, Inc. ("Post
Modern") entered into a lease agreement (the "Lease Agreement") whereby the City leased from
Post Modern for up to five years approximately 3,802 square feet of space for the Police District
One Office at 144 North Mason Street, Suites 1, 2, and a portion of 3, Fort Collins, Colorado
(the "Leased Premises"); and
WHEREAS, under the Lease Agreement the rental rate for the Leased Premises is $12.95
per square foot for the first three years of the lease, $13.34 per square foot for the fourth year,
and $13.76 per square foot for the fifth year; and
WHEREAS, the term of the Lease Agreement commenced on May 1, 2010, and will
terminate on April 30, 2015, contingent upon the annual appropriation of funds sufficient to
meet the City's obligations under the Lease Agreement; and
WHEREAS, under the Lease Agreement, the City must pay any property taxes on the
Leased Premises if the Leased Premises is not removed from the Larimer County Assessor's tax
rolls; and
WHEREAS, in order for a property rented by a municipality to be exempt from taxation,
Sections 31-15-801 and 802 of the Colorado Revised Statutes require that the lease agreement
and the terms thereof be approved by ordinance, which ordinance will not be effective until 30
days after its passage and publication, and that the property be used for governmental or
proprietary purposes of the municipality; and
WHEREAS, the use of the Leased Premises for a Police substation is a governmental
purpose; and
WHEREAS, a copy of the Lease Agreement is on file in the.Office of the City Clerk and
available for inspection; and
WHEREAS, the City Council wishes to approve the Lease Agreement and its terms by
this ordinance so that the Leased Premises may be removed from the tax rolls.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. That the City Council hereby approves the Lease Agreement for the
property located at 144 North Mason Street, Suites 1, 2 and a portion of 3, in substantially the
form that is on file in the office of the City Clerk, the terms of which include a lease term of one
year commencing on May 1, 2010, with the option for four 12-month extensions at an initial rate
of$12.95 per square foot, together with such other 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 or effectuate the purposes of this Ordinance.
Section 2. That for purposes of the property tax exemption authorized by Section 31-
15-802 of the Colorado Revised Statutes, this Ordinance will take effect thirty days after its
passage and publication.
Introduced, considered favorably on first reading, and ordered published this 7th day of
December, A.D. 2010, and to be presented for final passage on th 1st day of December, A.D.
2010.
1
May
ATTEST:
City Clerk
Passed and adopted on final reading on the 21st day of December, A.D. 2010.
Mayor
ATTEST:
City Clerk