HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 08/19/2003 - FIRST READING OF ORDINANCE NO. 111, 2003, AUTHORIZ AGENDA ITEM SUMMARY ITEM NUMBER: 19
FORT COLLINS CITY COUNCIL DATE: August 19, 2003
FROM:
Katie Moore
SUBJECT:
First Reading of Ordinance No. 111, 2003, Authorizing the City to Enter into a Revocable Lease
with the Cortina Homeowners' Association for Portions of Public Right-of-Way for Underground
Storage.
RECOMMENDATION:
Staff recommends adoption of the Ordinance on First Reading.
EXECUTIVE SUMMARY:
If adopted, this Ordinance would authorize the Mayor to enter into an agreement with the Cortina
Homeowners' Association for a revocable lease of portions of public right-of-way to be used as
underground storage for a proposed building on the southwest corner of the intersection of Canyon
110 Avenue and Howes Street. The Canyon Avenue lease area is 478 square feet of surface area with
a depth of 9 feet(approximately 77 feet in length and 6 feet in width). The other area is within the
Howes Street right-of-way and measures 520 square feet of area and is also 9 feet in depth
(approximately 84 feet in length and 6 feet in width). The lease area will be leased to and maintained
by the Homeowners' Association of the "Cortina" project. This lease area only applies to the
underground portions of the right of-way immediately adjacent to the proposed building,(more fully
described on Exhibit"A"of the Lease and Attachment 1 of the Agenda Item Summary)and is to be
used for the purpose of construction and maintaining underground storage for the building's tenants.
The term of the lease is 99 years with the lease payment to be made in one lump sum upon
commencement of the lease,at a rate of$10 per square foot of the overlying surface area for a total
of$9,984.
ORDINANCE NO. 111, 2003
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORING THE CITY TO ENTER INTO A REVOCABLE LEASE
WITH THE CORTINA HOMEOWNERS' ASSOCIATION FOR
PORTIONS OF PUBLIC RIGHT-OF-WAY FOR UNDERGROUND STORAGE
WHEREAS, Sections 23-111 and 23-114 of the City Code authorize the leasing of City
property for a term exceeding two years if the City Council finds by ordinance that such lease is in
the best interest of the City; and
WHEREAS, the developer of a residential/commercial project to be constructed at the
southwest corner of Howes Street and Canyon Avenue(the Cortina Project)desire to locate portions
of a subterranean storage structure in and under portions of the right-of-way for Howes Street and
Canyon Avenue; and
WHEREAS, the City Council is willing to enter into a 99-year lease for the above-stated
purpose upon the terms and condition as are set out in the Lease Agreement.
NOW,THEREFORE,BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS that the Lease Agreement attached hereto and incorporated herein as Exhibit"A"is in the
best interest of the City and the Mayor is hereby authorized to execute the Lease Agreement
including 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 and considered favorably on first reading and ordered published this 19th day of
August, A.D. 2003, and to be presented for final passage on the 2nd day of September,A.D. 2003.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading this 2nd day of September, A.D. 2003.
Mayor
ATTEST:
. City Clerk
• EXHIBIT "A"
LEASE AGREEMENT
This Lease Agreement is made and entered into this day of . 2003
by and among THE CITY OF FORT COLLINS,COLORADO,a municipal corporation(the"City")
and CORTINA HOMEOWNERS'ASSOCIATION,a Colorado nonprofit corporation(the"Lessee").
WHEREAS, Section 23-111 and 23-114 of the City Code authorize the leasing of City
property for a term exceeding two(2)years if the City Council finds by ordinance that such lease is
in the best interest of the City; and
WHEREAS, the Lessee desires to locate portions of a subterranean storage structure (the
"Structure") in and under certain property of the City; and
WHEREAS, the City and the Lessee desire by this Lease Agreement to establish the terms
and conditions of the Lease for the premises where the Structure shall be constructed; and
WHEREAS,by Ordinance No.111.2003,the City Council authorized the Mayor to execute
this Lease.
NOW,THEREFORE,in consideration of the promises of the parties hereto and the payment
of the Lessee to the City as hereafter provided and other good and valuable consideration,the receipt
and adequacy of which are hereby acknowledged, it is agreed as follows:
1. Covenant of Lease. The City hereby leases to the Lessee for the purposes of
constructing the Structure at the Leased Premises, which leased premises are described more
particularly on Exhibit "A" attached hereto and incorporated herein by this reference. The Lessee
shall not use the Leased Premises for any purpose other than for constructing and operating the
Structure for storage purposes.
2. Term of Lease. The term of this Lease shall commence on the day of
and shall terminate precisely ninety-nine(99)years thereafter, unless
earlier terminated in accordance with the provisions of paragraph 12 hereof. If,at the conclusion of
this Lease, the parties mutually agree to enter into a new lease, they may negotiate such new lease
upon terms similar to those contained in this Lease or otherwise, and present such lease to the City
Council, requesting its approval under the laws governing the City then in effect.
3. Lease Consideration. The Lessee shall pay the sum of Nine Thousand Nine
Hundred and Eighty Four Dollars and Forty Cents ($9,984.40) as full consideration for the entire
term of this Lease, such payment to be made upon execution of this Lease Agreement.
4. Notice and Place of Payment. All notices to the City should be sent to the following
address:
City Engineer
P.O. Box 580
Ft. Collins, CO 80522
5. Access and Preservation of Surface. The Leased Premises shall be established in
such manner that vehicular and pedestrian access on the surface above the Leased Premises is not
impeded, and that the surface above the Leased Premises is not visibly affected in any way.
6. Construction and Maintenance. The Lessee shall construct the Structure in
accordance with the plans and specifications approved by the City Engineer and dated
and shall maintain the Structure and the Leased Premises in a safe and healthy condition and in a
manner which will provide adequate support for the City's usage of the overlying surface of the
Leased Premises for street and sidewalk purposes. The Structure shall also be constructed and
maintained to insure the City's free and readily accessible usage of the right-of-way for utility
purposes as shown on the approved plans and specifications. The Lessee shall make available to the
City such utility sleeves and conduits,without any charge to the City, as are shown on the approved
plans and specifications.
7. Governmental Regulations/Compliance with Covenants. The Lessee shall comply
with all laws,rules and regulations of any governmental agency having jurisdiction that are applicable
to the Leased Premises, and the provision of Section 23-114 of the Code of the City. The failure of
the Lessee to comply with the terms of this Lease Agreement or to vacate the Leased Premises upon
revocation of the Lease,whether for cause or without cause,shall be deemed to constitute a violation
of the Code of the City and shall be punishable in accordance with Section 1-15 of the Code.
8. Insurance. During the term of this Lease Agreement, the Lessee shall purchase and
maintain general liability coverage in connection with the Leased Premises, including all
improvements thereon, in the amount of One Million Dollars ($1,000,000.00). The City shall be
named as an additional insured on all such policies. All insurance required hereunder shall be issued
by an insurance company authorized to do business in Colorado which meets all of the requirements
of the Division of Insurance for that purpose.Upon each yearly renewal, the Lessee shall provide to
the City proof of insurance coverage required herein.
9. Disturbance to Leased Premises/Indemnification. The Lessee shall exercise its
privileges hereunder at its own risk. The City shall not be liable to the Lessee if, for any reason
whatsoever, the Lessee's occupancy or use of the Leased Premises is hindered or disturbed, unless
such hindrance or disturbance is directly and unlawfully caused by the City. The Lessee shall
indemnify and hold the City harmless from and against any damage and against all liability for loss or
expense (including attorneys' fees) resulting from, arising out of or in any way connected with the
occupancy or use of the Leased Premises by the Lessee,tenants, guests, licensees or invitees of the
Lessee.
Page 2 of 5
• 10. Nuisance. The Lessee shall not use the Leased Premises for any purposes other than
parking and storage and shall not perform,nor permit any of its tenants, guests, licensees or invitees
to perform any disorderly conduct or commit any nuisance on the Leased Premises or use the Leased
Premises in any way which interferes with the City's use of the overlying or underlying public
property.
11. Taxes. The Lessee agrees to pay any taxes associated with the use and non-freehold
ownership of the Leased Premises.
12. Termination. This Lease may be terminated for any of the following reasons:
(a) Upon Vacation. This Lease shall automatically terminate upon the effective
date of any ordinance of the City Council vacating the right-of-way in and
under which the Leased Premises is located.
(b) At Will. The City may terminate this Lease at its pleasure at any time during
the term hereof by giving the Lessee no less than ninety(90) days advance
written notice of such termination.
(c) For Cause. The City may terminate this Lease Agreement at any time during
the term hereof in the event of a default or breach of any condition or
warranty ofthis Lease Agreement by giving the Lessee written notice of such
default. If the Lessee has failed to cure such default within ten(10)days after
notice hereof, or such longer period as may reasonably be required given the
nature of the default (but in no event longer than thirty(30] days), then this
Lease Agreement,at the option of the City,maybe terminated,and the Lessee
shall thereafter have no fiuther rights hereunder. The City may(but shall have
no obligation to) permit the Lessee to cure a default within such time in
excess of the aforesaid time limits as the City may establish in writing
delivered to the Lessee.
(d) Restoration on Termination/No Proration. Upon termination of this Lease
Agreement, the Lessee shall promptly remove all improvements or fixtures
within the Leased Premises and restore the Leased Premises to its original
condition, all at the Lessee's sole expense. In the event of termination, the
City shall have no obligation to remit to the Lessee any unused rent.
13. Assignment. The Lessee's privileges hereunder shall not be assignable by the Lessee,
in whole or in part, without obtaining the City's prior written approval.
14. Attorneys' Fees and Costs. In the event of a breach of this Lease Agreement by any
of the parties, the non-breaching parties shall be entitled to recover their reasonable attorneys' fees
and costs incurred in connection with the enforcement of this Lease Agreement.
Page 3 of 5
15. Applicable Law. This Lease Agreement shall be construed and interpreted in
accordance with the laws of the State of Colorado, and the District Court of Larimer County,
Colorado shall have sole jurisdiction in deciding disputes under the terms of this Lease Agreement.
16. Bindine Agreement. All of the covenants and conditions of this Lease Agreement
shall be binding on the parties hereto,their successors and assigns(if assignment is permitted by the
City).
IN WITNESS WHEREOF,the parties have executed this Lease Agreement the day and year
first above written.
THE CITY OF FORT COLLINS, COLORADO,
a municipal corporation
By:
Ray Martinez, Mayor
Attest:
City Clerk
Approved as to form:
Deputy City Attorney
CORTINA HOMEOWNERS' ASSOCIATION, a
Colorado nonprofit corporation, Lessee
By:
William Coulson, President
Attest:
Susan Cannon, Secretary
Page 4 of 5
• STATE OF COLORADO )
ss.
COUNTY OF LARIMER)
Subscribed, sworn to and acknowledged before me this day of
by William Coulson as President and Susan Cannon as Secretary of the Lessee.
Notary Public
My Commission expires:
. Page 5 of 5
Attachment 1
ar }
,I x qp
WW yy
• g 6
� 99�
WSW Wl g
q o WW
in
4
A
s �
. qm
x � W, Ali Y yq 3p^
°W e
B 0r
'W
( g9rs gars +s.mr.
,f
SCALE ACCORDINGLY
�!�II COIs\CINA .+ F
cou.soN_
N U mu.q
Exhibit ,A,,
Page 1 of 2
Rn SURVEY$
113 Cannerva Drl.q Sol"8
Fat Ceab Cstsraio MM
• 7�a
FAIL:�7
PROPERTYID SCRIPUON:
An underground easement located in the Southeast Q1la W of Section 11,Township 7
North,Range 69 West of the 6"P.M., in the City of Fort Collins,County of.Lariwcr,State
of Colorado,lying beneath a portion of the existing tight-ofway of Howes Street,being 9
feet in Might with the elevation of its bweat point being 4999.50 feet(City of Fort Collins
Vertical Datum),and bemg horizontally described by the 1bBowmg boundary lines:
Commencing at the most Northerly corner of Lot 5,Block 92, City of Fort Collins;thence
along the Westerly right-of--way line of Howes Street S 00°00'00"W 62.80 feet to the
TRUE POINT OF BEGINNING; thence continuing along Said right_of-way link S
00*W'00"W 83.25 feet; thence N 90000'00"E 6.25 feet; thence N 00000100"E 83.25
feet; thence S 90°00'W'W 6.25 feet to the POINT OF BEGINNING,containing 520
Square Eeet of area, and 4683 cubic feet of volume,
SURVEYOR'S er�'reasysrr.
4 Ricky J.Lewis,being a duly registered Professional land Surveyor in the State of Colorado,do hereby
state Ihat this description was prgrared by me bored on an aoaul 6eid survey perlbrmed under my direa
sup�ervisQion,and also based on construction drawimgs prepared by others.
tL.Jr_ y t � �,�,1t�ttp111p111!ll�gq
Rtcky J.Lmr-'Coloredo P.L.S.No.25372 O� RFQ�4
J.
0
h
A L LAMS+'ir. .a^eb
Exhibit"A"
Page 2 of 2
IqLsv 113 nvzys Fart
FAX:Q7e)n&M7
PROPERTY DESC JIP7 ON;
ATM underground easement located in the Southeast Quarter of Section 11,Township 7
North,Range 69 West of the 6°P.M.,in the City of Fort Collins,County of Larhuer, State
of Colorado,lying beneath a portion ofthe existing right-of-way of Canyon Avenme,being
9 feet in height with the elevation of its lowest point being 4999.50 feet(City of Fort
ColUns Vertical Datum),and being horzontally described by the following boundary lines:
COmmoncing at the most Northerly corner of Lot 5,Block 92,City of Fort Colins:thence
along the Easterly right-of-way line of Canyon Avenue S 44058'40"W 77.40 feet to the
TRUE POINT OF BEGINNING: thence continuing along said right-of-way line S
44058140"W 76.50 feet: thence N 45901'20"W 615 feet; thence N 44058'40"E 76.50
feet: thence S 45e01'20"E 6.25 feet to the POINT OF BEGINNING,containing 478
square feet of area,and 4303 cubic feet of volume.
EnMYOWS STATIUIM
I,Risley L Lewin,Wall a duty registered Profasioeai Land Sorvayor in the State of Colorado,do hereby
state that this dexxiptioa was prepared by me based on as actual Geld aurvey performed under my direct
supervision,and atw based ou conmuctiou drawimgs prepared by others.
0 t1aM�'SNrryp
�t 1 rJel
Ricky J.Lew laadc PI. .No.25372 `1 J. 9�