HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 03/01/2011 - FIRST READING OF ORDINANCE NO.026, 2011, AUTHORIZI DATE: March 1, 2011
AGENDA ITEM SU MARYSTAFF: Helen Matson _
T COLLINS CITY C UNCIL
Kayla Ballard JIB
First Reading of Ordinance No.026, 2011, Authorizing the Lease of City-owned Property at 222, 224, and 226 West
Mountain Avenue for Up to Five Years.
EXECUTIVE SUMMARY
The City has been the owner of the properties located at 222, 224 and 226 West Mountain Avenue since 1985. Moe
Kamandy of the Mountain Cafe has been leasing this space since 1991. The total yearly lease payment for these
spaces will be at least$11,200. The term of the lease shall be for one (1)year with automatic renewal for up to four
(4)successive one-year terms. With this lease, either party will have the option to terminate at any time upon twelve
(12)months advance written notice to the other party. In addition,the tenant is responsible for the following expenses:
taxes, all utilities, and janitorial.
BACKGROUND / DISCUSSION
The City and the County purchased the building at 222, 224 and 226 West Mountain Avenue in 1985 as part of the
Block 31 purchases. In the Intergovernmental Agreement dividing Block 31,this property was quit claimed to the City.
Since the City and County's purchase of this property,these spaces have been leased to commercial customers. The
current tenant of 222,224 and 226 West Mountain Avenue,Moe Kamandy of the Mountain Cafe, has leased 226 West
Mountain since 1991. In 2004, Council authorized the lease of Mountain Cafe, under Ordinance No. 066, 2004, to
include 222 and 224 West Mountain Avenue for a total lease area of 1,370 square feet. These spaces are not
conducive for use by other City users. Staff recommends continuing to lease these spaces to Moe Kamandy of the
Mountain Cafe until this area of Block 31 is needed for the future improvements.
FINANCIAL/ ECONOMIC IMPACTS
Rent collected from this lease will result in at least $11,200 each year in unanticipated revenue to Miscellaneous
Revenue- General Fund. Tenant will be responsible for all expenses for utilities,janitorial, and taxes.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
ATTACHMENTS
1. Location map
ATTACHMENT 1
2221 224 & 226, West Mountain
. Avenue Lease Location Map
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ORDINANCE NO. 026, 2011
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE LEASE OF CITY-OWNED PROPERTY AT
222, 224 AND 226 WEST MOUNTAIN AVENUE FOR UP TO FIVE YEARS
WHEREAS,the City is the owner of a building with three units located at 222,224 and 226
West Mountain Avenue, Fort Collins, Larimer County, Colorado (the "Property"); and
WHEREAS, the Property was purchased in 1985 as part of the Block 31 purchases and has
since been occupied by commercial lease tenants as there is not a City need identified for the
Property; and
WHEREAS,the Property is currently leased to Moe Kamandy,owner of the Mountain Cafe;
and
WHEREAS,the City desires to continue leasing this Property for a period of up to five years
at an annual rate of at least $11,200; and
WHEREAS, the lease of the Property is beneficial to the City as it will generate revenue,
reduce the City's costs for utilities for the Property and discourage vandalism; and
WHEREAS,under Section 23-111(a)ofthe City Code,the City Council is authorized to sell,
convey or otherwise dispose of any and all interests in real property owned in the name of the City,
provided that the City Council first finds, by ordinance, that such sale or other disposition is in the
best interests of the City.
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 leasing the Property as provided
herein is in the best interests of the City.
Section 2. That the City Manager is hereby authorized to execute a lease agreement for
the Property consistent with the terms of this Ordinance, together with such additional terms and
conditions as the City Manager, in consultation with the City Attorney, determines to be necessary
and appropriate to protect the interests of the City or effectuate the purposes of this Ordinance,
including any necessary changes to the legal description of the Property, as long as such changes
to not materially increase the size or change the character of the property to be leased.
Introduced, considered favorably on first reading, and ordered published this 1st day of
March, A.D. 2011, and to be presented for final passage on the 15th day of March, A.D. 2011.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading on the 15th day of March, A.D. 2011.
Mayor
ATTEST:
City Clerk