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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 12/04/2007 - FIRST READING OF ORDINANCE NO. 143, 2007, APPROVIN ITEM NUMBER: 12 AGENDA ITEM SUMMARY DATE: December4, 2007 FORT COLLINS CITY COUNCIL STAFF: Helen Matson SUBJECT First Reading of Ordinance No. 143, 2007,Approving the Terms of the City's Lease of 612 South College Avenue, Suite 22, 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 612 South College Avenue, Suite 22, and will permit the Larimer County Treasurer's Office to remove the 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 taxes. EXECUTIVE SUMMARY 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. Since December 1992, the City has been leasing approximately 388 square feet of office space located at 612 South College Avenue, Suite 22, for the office of Dr. Dan Dworkin, Police Services psychologist. Both Dr. Dworkin and Police Services desire to continue leasing this office space. This lease extension shall be effective as of December 1,2007 and expire November 30,2008,with two 12-month lease extension options. Lease payments will include base rent and insurance. Base rent shall be$457 per month. Utilities charges are not included in the base rent and shall be 14.22% of the utilities statements for the property. Rent for the option period will be calculated by the Consumer Price Index. ATTACHMENTS 1. Location Map 2. Lease Extension and Modification Agreement ATTACHMENT 1 Lease of 612 S . College Avenue Location Map First United Presbyterian Church I W MYRTLE ST E MYRTLE ST I i W� 7 Wli (9 i Oi 0i CO: The Garment District W I�AURELST E LAUREL ST ® Lease Property Location N A ATTACHMENT LEASE EXTENSION AND MODIFICATION AGREEMENT THIS LEASE EXTENSION AND MODIFICATION AGREEMENT,hereinafter"Lease Extension", is made and entered into as of this day of January 2008, by and between the City of Fort Collins,hereinafter"Tenant", and I"Realty Associates, Inc,Agent for the Owner hereinafter"Agent". The above persons and/or entities may hereinafter be referred to individually as"Party"or collectively as"Parties"to this Lease Extension. WITNESSETH WHEREAS, the Parties agree and acknowledge that on the 1st day of January,2006 Tenant did enter into a Lease Agreement for space identified as 612 S. College Avenue, Suite 22, Fort Collins, Colorado(the"Lease Premises"),between itself as Tenant and Front Porch Property Services as Landlord, and on November 26,2006 Tenant signed an Agreement to Amend/Extend Lease with Front Porch Property Services. Said Amended Lease Agreement was assigned by Front Porch Property Services to 1"Realty Associates, Inc on June 1, 2007 per a letter dated May 18, 2007. The Lease Agreement,Agreement to Amend/Extend Lease and letter advising of the lease assignment are collectively referred to hereinafter as the"Original Lease'; and WHEREAS, the Parties desire to extend the Original Lease for an additional one (1)year term with two optional additional one(1)year extensions. NOW THEREFORE, for the exchange of good and valuable consideration between the Parties, the receipt and adequacy of which has been acknowledged and confessed by the Parties,the Parties agree to extend the Original Lease as follows: I. The Parties agree to extend the term of the Original Lease for a one(1)year term ("Extension Term")commencing on December 1, 2007 and terminating on November 30, 2008 under the same terms and conditions as expressed in the Original Lease, except as modified by this Lease Extension. Tenant shall have the option to renew for up to two (2)additional one year terms ("Optional Terms"). Tenant may exercise this option by notifying Agent with written notice thereof at least three(3)months prior to the expiration of the then-current term that Tenant wishes to renew. In the event that Tenant fails to give such notice to Agent as herein provided, this Lease shall automatically terminate at the end of the then-current term, and Tenant shall have no further right or option to extend this Lease. 2. The base rental for the Extension Term shall be$457.00 per month($5,484 annually). For each Optional Term,the base rental shall be adjusted by the percentage change in the U.S. Bureau of Labor Statistics Consumer Price Index. 3. Real Property Taxes and Assessments. To the extent that Tenant is unable to exempt the Leased Premises from taxation pursuant to State law,the Tenant shall pay to Agent, in advance, on the first day of each month, as additional rent, Tenant's pro-rata share of one-half(1/2)of all real estate taxes and special assessments levied and assessed against the building and common area. If the first and last years of the lease term are not calendar years,the obligations of Tenant hereunder shall be prorated for the number of days during the calendar year that this Lease Extension is in effect. The monthly payments for such taxes and assessments shall be$63.79 until Agent receives the next tax statement for the building and common area. Thereafter,the monthly payments shall be based upon 1/12°of the prior year's taxes and assessments. Once each year Agent shall determine Tenant's actual pro-rata share of taxes and assessments for the prior year and if Tenant has paid less than Tenant's pro-rats share for the prior year,Tenant shall pay the deficiency to Agent with the next payment of base monthly rent,provided sufficient funds for such payment have previously been appropriated for such purpose by Tenant's governing body. If Tenant has paid in excess of Tenant's pro-rata share for the prior year Agent shall forthwith refund said excess to Tenant by crediting same to Tenant's future base monthly rent payments or returning with tax reconciliation to Tenant if lease is expired. 4. All other terns and conditions of said Original Lease shall remain unaffected by this Lease Extension and shall remain in full force and effect. IN WITNESS WHEREOF,the Parties have duly executed this Lease Extension as of the date first written above. Tenant: City of Fort Collins By: Darin A. Atteberry, City Manager Attest: Wanda M. Kmjicek, City Clerk Approved as to Form: Assistant City Attorney Agent for the Owner: V Realty Associates, Inc. By: Julie L. Eberhard, Property Manager FRONT PORCH PROPERTY SERVICES, INC. ry Y 0".3 WELCOME HomF- October 30,A06 AGREEMENT TO AM WEXTEND LEASE RE: Lease dated /I/ ,2001®between: FRONT PORCH PROPERTY SERVICES,Racer fore er&ndlord and City Of Fort Collins,,, relating to the following described real estate in the City of Fort Collins,County of Latimer, Colorado. Property known as: 612 College Av S 12 Owner/Agent and Tenants)hereby agree to amend the aforesaid lease as follows: • Lease Section 0--� Lease shall be extended to run from noon 11/3012006,to noon _ 30 200-1 o 0 • L Section ,3,4- Total rental price over the term of the lease shall be S -sl Payments shall be made in monthly installments of$ _beginning at noon 11/3012006, ¢ ef�� 0v All other terms and conditions of said contract shall remain the me. P- Darin A. Atteberr_y, City Mana er name) Si ate Attest: (,W��31C6k' City Clerk re I 1—d (Print name) i ¢ N( a� Approve as Ingrid Decker, Asst. CityAtt /4_a to Form: (Print name) Si nature g ) (Dale) (Print name) (Signature) (Date) vdATr' 4V 5 te / t l 29 0 (Managers'name) (S' nature) (Date emails:renlals01234rentcom 4 if1a77-Xi 6i - f,v070-472-RIM - '1234Wpros0ect Rtl Forffnllfna rt„.,,..,._nncoc - LEASE AGREEMENT THIS LEASE AGREEMENT, made and entered into this 1 day of , 2006, by and between Front Porch Property Services, Inc, hereinafter referred to as "Landlord", and City of Fort Collins, hereinafter referred to as "Tenant"; WITNESSETH: In consideration of the covenants, terms, conditions, agreements and payments as hereinafter set forth, the parties hereto covenant and agree as follows: 1. PROPERTY—LEASE PREMISES Landlord hereby leases unto Tenant the following described premises: 612 S College Ave, Unit#22, Fort Collins, CO 80524 (See Exhibit A) which shall hereinafter be referred to as the "leased premises"; the leasing of which shall be covered by the terms of this Agreement. 2. TERM The terms of this Lease shall commence at 12:00 Noon on the Iat day of December 2005, and unless terminated as herein provided for, shall end at 12:00 noon on the 30th day of November 2006. 3. RENT Tenant shall pay to Landlord, at the address of Landlord as herein set forth, the following as rental for the leased premises: A. BASE RENTAL The base rental for the full term hereof shall be five thousand two hundred fifty six Dollars ($5,256.00). Said rental shall be payable in monthly installments (basic monthly rental)of four hundred thirty eight Dollars ($438.00) in advance on the first day of each month during the term hereof. B. SECURITY DEPOSIT Landlord further acknowledges receipt of the sum of two hundred twenty Dollars ($220.00) (retained from previous lease) to be retained by Landlord without responsibility for payment of interest hereon, as security for performance of all the terms and conditions of this Lease Agreement to be performed by Tenant, including payment of all rental due under the terms hereof. Deductions may be made by Landlord from the amount so retained for the reasonable cost of repairs to the demised premises (ordinary wear and tear accepted), for any rental delinquent under the terms hereof and/or any sum used in any manner to cure any default in the performance of Tenant under the terms of this Lease. In the event deductions are so made during the rental term, upon notice by Landlord, Tenant shall re-deposit such amounts so expended so as to maintain the deposit in the amount as herein provided for, and failure to so re-deposit shall be deemed a failure to pay rent under the terms hereof. Nothing herein contained shall limit the liability of Tenant as to any damage to the leased premises, and Tenant shall be responsible for the total amount of any damage and/or loss occasioned by actions of Tenant. Landlord may deliver the funds deposited hereunder by Tenant to any purchaser of Landlord's interest in the leased premises in the event such interest shall be sold, and thereupon Landlord shall be discharged from any further liability with respect to such deposit. 1 C. COST OF LIVING ADJUSTMENT Applicable X Not Applicable At the option of Landlord, as of anniversary date of this Lease, the basic monthly rental due under the terms hereof shall be adjusted by the percentage increase in the U.S. Bureau of Labor Statistics Consumer Price Index (commonly referred to as the Cost of Living Index). It is acknowledged the basic monthly rental herein set forth is based upon the index that is for"all terms" published for the month of , 20_. In the event Landlord elects to so adjust the basic monthly rental to be paid, the basic monthly rental then being paid shall be increased by an amount equal to the amount arrived at by multiplying the percentage increase in the Cost of Living Index for the preceding month period times the then payable monthly rental. The increased monthly rental as so determined shall commence as of the first day of the month immediately following the anniversary date and shall continue until re-adjusted as herein provided for. In the event said Index ceases to be made available, Landlord shall have the right to use the Index that has replaced, modified or changed said Index. If there is not replacement Index, Landlord shall have the right to increase the rental due under the terms hereof, said rental adjustment being made in accordance with the provisions of this paragraph, with the percentage to be used being the percentage increase in said Index for the year immediately preceding the month in which said Index ceases to be published. Additional rents due because of increase in cost of living index, accrued prior to the date the current index is available, shall be added to rents due for the remainder of the lease year and paid in equal installments with the rental payments for the succeeding months. D. PERCENTAGE RENT _Applicable; see Exhibit_ X Not Applicable 4. TAXES—REAL PROPERTY—ADJUSTMENT A. Real Property Tax Paid By Tenant _Applicable X Not Applicable Tenant agrees to pay to Landlord, as additional rent, Tenants proportionate share of the real estate and ad valorem taxes including any and all several or special assessments which may be levied or assessed by any lawful authority for each calendar year during the lease term, including those assessed against the land and/or building comprising the property as leased or a part thereof. B. Real Property Tax Paid By Landlord _Applicable X Not Applicable The general real property taxes for the real property and improvements of which the leased premises are a part, as levied and assessed for the year_are the base taxes on which the basic rental due hereunder is based. On or before March 15 of each year thereafter Landlord shall advise Tenant of the amount of any increase in said taxes over the base taxes. Tenant shall, on or before, April 1 of said year, pay to Landlord, as additional rent under the terms hereof,_% percent of any such increase in the real property taxes as herein determined. In the event the first and last lease years as hereinabove defined are not calendar years, the liability of Tenant under the terms hereof shall be prorated with Tenant being liable for only those numbers of days during which the lease was in effect. 2 5. TAXES— PERSONAL PROPERTY—RESPONSIBILITY Tenants shall be responsible and pay for any and all taxes and/or assessments levied and/or assessed against any furniture, fixtures, equipment and items of a similar nature installed and/or located in or about the leased premises by Tenant. 6. UTILITIES 1ATenant ❑ Landlord shall be solely responsible for and promptly pay all charges for heat, water, gas, electric, sewer service, and any other utility service used or consumed on the leased premises. Should the Landlord elect to supply all or any of the utility services to be used or consumed on the leased premises, Tenant shall, within ten days from presentation of the statement for such utility service, pay to Landlord, as additional rent under the terms hereof, the amount of said statement if it represents utility service to the leased premises only or .1422% percent of said statement if it includes utility service to an area greater than the leased premises. In no event shall Landlord be liable for any interruption or failure in the supply of any such utility to the leased premises. Said proration of utilities shall be reviewed by Landlord and Tenant at the end of the first year of occupancy, at which time Landlord shall determine if the present percentage of said total utilities is equitable in relation to the use of total services by all the Tenants and will be adjusted by Landlord if necessary. 7. HOLDING OVER If after expiration of the term of this Lease,Tenant shall remain in possession of the leased premises and continue to pay rent without a written agreement as to such possession, then Tenant shall be deemed a month-to-month Tenant and the rental rate during such holdover tenancy shall be equivalent to the monthly rental paid for the last month of tenancy under this Lease. No holding over by Tenant shall operate to renew or extend this Lease without the written consent of Landlord to such renewal or extension having been first obtained. 8. MODIFICATIONS OR EXTENSIONS No modification or extension of this Lease shall be binding unless in writing, signed by the parties hereto and endorsed hereon or attached hereto. 9. ALTERATION—CHANGES AND ADDITIONS—RESPONSIBILITY Subject to Landlord's prior approval, which shall not be unreasonably withheld, Tenant may, during the term of this Lease, at Tenant's expense, erect inside partitions, add to existing electric power service, add telephone outlets, add light fixtures, install additional heating and/or air conditioning or make such other changes or alterations as Tenant may desire. At the end of this Lease, all such fixtures, equipment, additions and/or alterations, (except trade fixtures installed by Tenant), shall be and remain the property of the Landlord: provided, however, Landlord shall have the option to require Tenant to remove any or all such fixtures, equipment, additions, and/or installation, normal wear and tear excepted, all at Tenants cost and expense. All such work shall be done in a good and workmanlike manner and shall consist of new materials unless agreed to otherwise by Landlord. Any and all repairs, changes and/or modifications thereto shall be the responsibility and at the cost of Tenant. Landlord may require adequate security from Tenant assuring no mechanic's liens on account of work done on the premises by Tenant. Landlord may also require adequate security to assure Landlord that the premises will be restored to their original condition upon termination of the Lease. 3 10. APPROVAL OF CHANGES—SIGN APPROVAL Landlord must approve, in writing, any sign to be placed in or on the leased premises, regardless of size, of value and/or any addition, change or alteration to the exterior of the leased premises. Prior to the cutting of any holes in the roof or prior to any work being performed and/or any equipment being installed on the roof by Tenant, the prior written approval of Landlord is to be obtained by Tenant. If Tenant fails to get such prior written approval, then any roof repairs required shall be the responsibility of Tenant. As a condition to the granting of such approval, Landlord shall have the right to require Tenant to furnish a bond or other security acceptable to Landlord sufficient to insure completion of and payment for any such work to be so performed. 11. CARE OF LEASED PREMISES—RESPONSIBILITY OF TENANT During the term of this lease, Tenant agrees to keep and maintain the interior of the leased premises in good condition and repair at Tenant's cost and expense. Tenant further agrees at the end of the term to return the leased premises to Landlord in substantially as good condition and repair as when received, except for usual and ordinary wear and tear. Tenant further agrees to be responsible for any repairs and/or maintenance required for any part of the improvements of which the leased premises are a part where such repair and/or maintenance is necessitated by actions or inactions of Tenant and/or activities conducted by Tenant on the leased premises. 12. MAINTENANCE RESPONSIBIITY OF LANDLORD Except as herein otherwise provided for, Landlord shall keep and maintain the roof and exterior of the building, the exterior grounds, plumbing, heating, air conditioning, and electric systems and all common areas of the improvements of which the leased premises are a part in good repair and condition. 13. COMMON AREA CHARGES _Applicable X Not Applicable Tenant shall be responsible for_% percent of the total costs incurred for the maintenance and repair of the leased premises, the improvements of which the leased premises are a part and/or the real property upon which said improvements are constructed, including, but not being limited to, the costs and expenses incurred for maintenance of common areas, parking lot maintenance including re-stripping and re-paving, removal of snow, removal of trash, rubbish, garbage and other refuse, utilities for common lighting and signs in the parking lot and insurance for liability and replacement of the same, all security that may be required to adequately protect and secure the premises, all common utilities including water to maintain the landscaping, replanting in order to maintain a smart appearance of the landscape area, supplies, depreciation on the machinery and equipment used in such maintenance and repairs, the cost for personnel to implement such services, to direct parking and to police the common areas and _% percent of all the foregoing costs to cover Landlord's administrative and overhead costs, it being the intent to exclude only items of expense commonly known and designated as carrying charges. Those costs are estimated on a semi-annual basis and shall be payable monthly along with the rent and adjusted upwards or downwards depending on the actual costs for the preceding six (6) months. Tenant shall pay monthly, commencing with the first month of lease term, as additional rent due under the terms hereof, a sum equal to_% percent of the estimated costs for said six month period, divided by six. 4 14. CONTROL OF COMMON AREAS All parking areas, driveways, entrances, exits, common areas and other facilities furnished by Landlord, in, on, or near the improvements of which the leased premises are a portion, shall at all times be subject to the exclusive control and management of Landlord, notwithstanding that Tenant and/or Tenant's employees and/or customers have a nonexclusive right to the use thereof. Landlord shall have the right from time to time to establish modify and enforce reasonable rules and regulations with respect to said facilities and areas. 15. USE OF PREMISES AND CARE OF GROUNDS -TENANT Tenant shall conform to all present and future laws and ordinances of any governmental authority having jurisdiction over the leased premises. Tenant shall not allow any accumulation of trash or debris on the leased premises or within any portion of the improvements of which the leased premises are a part. All receiving and delivery of goods and merchandise and all removal of garbage and refuge shall be made only by way of the rear and/or other service door provided therefore. In the event, the leased premises shall have no such door, and then these matters shall be handled in a manner satisfactory to Landlord. No storage of any material outside of the leased premises shall be allowed unless first approved by Landlord in writing, and then in only such areas as are designated by Landlord. Tenant shall not commit or suffer any waste to be on the leased premises; nor shall Tenant permit any nuisance to be maintained on the leased premises nor permit any disorderly conduct, common noise or other activity having a tendency to annoy or disturb any occupants of any part of the improvements of which the leased premises are a part and/or any adjoining property. 16. LIABILITY FOR OVERLOAD -TENANT Tenant shall be liable for the cost of any damage to the leased premises, the improvements of which the leased premises are a part, or the sidewalks and pavements adjoining the same, which will result from the movement of heavy articles. Tenant shall not unduly load or overload the Floors or any part on any part of the leased premises. 17. GLASS AND DOOR RESPONSIBILITY-TENANT All glass and doors on the leased premises shall be the responsibility of the Tenant. Any replacement or repair shall be promptly completed at the expense of the Tenant. 18. RULES AND REGULATIONS Landlord reserves the right to adopt and promulgate rules and regulations applicable to the leased premises and the land and improvements of which the leased premises are a part and from time to time to amend or supplements thereto shall be given to Tenant; and Tenant agrees to comply with and observe such rules and regulations and amendments and supplements thereto, provided, however, the same apply uniformly to all tenants of the improvements of which the leased premises are a part. 19. USE OF PREMISES Tenants shall use the leased premises for office and for no other purpose whatsoever except with the written consent of Landlord. 20. PARIONG Throughout the term of this Lease, Landlord shall provide a reasonable area for off- street parking, if available and a part of the property being leased, for use of customers of Tenant in common with customers of other occupants or other portions of the improvements of which the leased premises are a part. Tenant shall park all vehicles of whatever type used by Tenant and/or Tenant's employees only in those areas which are designated by Landlord for 5 this purpose, and Tenant accepts the responsibility of seeing that Tenant's employees park only in such areas as are so designated. 21. INSURANCE— RESPONSIBILITY OF TENANT Tenant shall procure, pay for and maintain comprehensive public liability insurance providing coverage from loss or damage occasioned by an accident or casualty, about or adjacent to the leased premises, which policy shall be written on an "occurrence basis"with limits of not less that $500,000.00 liability coverage and $100,000.00 property damage coverage. In addition thereto, Tenant shall, at all times, procure, pay for and maintain fire legal liability insurance coverage on the leased premises. Certificates of such insurance shall be delivered to Landlord and shall provide that said coverage shall not be changed, modified, reduced or canceled without thirty(30) days prior written notice thereof being given to Landlord. If Tenant uses, in the leased premises, any kind of steam or other high pressure boiler or other apparatus which present any possibility of damage to the leased premises, or the improvements of which the leased premises are a part, or the life or limb of persons within such premises, Tenant agrees to carry appropriate boiler insurance in an amount satisfactory to Landlord to indemnify against any losses resulting from any explosion or other damage or liability. 22. RESPONSIBILITY OF LANDLORD The Landlord shall be responsible for and shall have in effect at all times fire extended coverage and vandalism and malicious mischief insurance in such amounts as shall be determined appropriate by Landlord. In the event of any increase in the premium therefore, regardless of the reason for such increase, over the premium paid for the coverage in effect as of the date hereof, Tenant shall pay, as additional rent due under the terms hereof 0% of the amount of such increase. If necessary, the amount due hereunder shall be prorated on the basis of the remaining term of this lease as to the remaining term of the policy for which said increase in premium has been charged. 23. REGULATIONS ON USE—TENANT RESPONSIBILITY It shall be Tenant's sole and exclusive responsibility to meet all regulations and laws of any governmental body having jurisdiction over the leased premises as such regulations affect Tenant's operations, all at Tenant's sole cost and expense. Tenant further agrees not to install any electrical equipment that overloads any electrical paneling, circuitry or wiring and further agrees to comply with the requirements of the insurance underwriter or any governmental authorities having jurisdiction thereof. 24. DAMAGES TO LEASED PREMISES In the event the leased premises and/or the improvements of which the leased premises are a part shall be totally destroyed by fire or other casualty; or so badly damaged that, in the opinion of the Landlord, it is not feasible to repair or rebuild the same. Landlord shall have the right to terminate this Lease upon written notice to Tenant. If the leased premises shall be partially damaged by fire or other casualty, except if caused by Tenant's negligence, and said leased premises are not rendered untenantable thereby, as determined by Landlord, an appropriate reduction of the rent shall be allowed for the unoccupied portion of the leased premises until repair thereof shall be substantially completed. If the leased premises are rendered untenantable thereby, except if caused by Tenant's negligence, Tenant may, at its election, terminate this Lease as of the date of the damage. If Tenant elects not to terminate the Lease, the rent shall abate in proportion to the loss of use of the leased premises by Tenant during such untenantability. 6 25. INSPECTION OF AND RIGHT OF ENTRY TO LEASED PREMISES A. Tenant has inspected the leased premises and accepts the same in condition that exists as of the date hereof. B. Landlord, and/or Landlord's agents and employees, shall have the right to enter the leased premises at all times during regular business hours with 24 hours prior notice to Tenant and, at all times during emergencies, to examine the leased premises, to make such repairs, alterations, improvements or additions as Landlord may deem necessary or desirable, and Landlord shall be allowed to take all materials into and upon said premises that may be required therefore without the same constituting an eviction of Tenant in whole or in part, and the rent reserved shall in no way abate while such repairs, alterations, improvements or additions are being made, by reason of loss or interruption of business of Tenant or otherwise. During the six month prior to the expiration of the term of this Lease or any renewal thereof, Landlord may exhibit the premises to prospective tenants and/or purchasers with 24 hours prior notice to Tenant and may place upon the leased premises the usual notices indicating the leased premises are for lease and/or sale. 26. DEFAULT—REMEDIES OF LANDLORD If Tenant shall default in the payment of rent or in the keeping of any of the terms, covenants or conditions of this Lease to be kept and/or performed by Tenant, Landlord may, after ten (10) days notice to Tenant and reasonable opportunity to cure, reenter the leased premises, remove all persons and property therefrom, without being liable to indictment, prosecution for damage therefore, or for forcible entry and detainer and repossess and enjoy the leased premises together with all additions thereto or alterations and improvements thereof. Landlord may, at its option, at any time and from time to time thereafter, re-let the leased premises or any part thereof for the account of Tenant or otherwise, and receive and collect the rents thereof and apply the same first to the payment of such expenses as Landlord may have incurred in recovering possession and for putting the same in good order and condition for re-rental, and expense, commissions and charges paid by Landlord in re-letting the leased premises. Any such re-letting may be for the remainder of the term of this Lease or for a longer or shorter period. In lieu of re-letting such leased premises, Landlord may occupy the same or cause the same to be occupied by others. Whether or not the leased premises or any part thereof be re-let, Tenant shall pay the Landlord the rent, and all other charges required to be paid by Tenant up to the time of the expiration of this Lease or such recovered possession, as the case may be, and thereafter, Tenant, if required by Landlord, shall pay to Landlord until the end of the term of this Lease, the equivalent of the amount of all rent reserved herein and all other charges required to be paid by Tenant, less the net amount received by Landlord for such re-letting, if any. If Landlord shall reoccupy the leased premises, then, from and after the date of repossession,Tenant shall be discharged of any obligations to Landlord under the provisions hereof for the payment of rent. In event of any default by Tenant, and regardless of whether the premises shall be re-let or possessed by Landlord, and fixtures, additions, furniture, and the like then on the premises may be retained by Landlord. In the event Tenant is in default under the terms hereof and, by the sole determination of Landlord, has abandoned the leased premises, Landlord shall have the right to remove all the Tenant's property from the leased premises and dispose of said property in such a manner as determined best by Landlord, all at the cost and expense of Tenant and without liability of Landlord for the actions so taken. In the event an assignment of Tenant's business or property 7 shall be made for the benefit of creditors, or, it the Tenant's leasehold interest under the terms of this Agreement shall be levied upon by execution or seized by virtue of any writ of any court of law, or, if application be made for the appointment of a receiver for the business or property of Tenant, or, if a petition in bankruptcy shall be filed by or against Tenant, then and in any such case, at Landlord's option, with or without notice, Landlord may terminate this Lease and immediately retake possession of the leased premises without the same working any forfeiture of the obligations of Tenant hereunder. In addition to remedy granted to Landlord by the terms hereof, Landlord shall have available any and all rights and remedies available under the Statutes of the State of Colorado. No remedy herein or otherwise conferred upon or reserved to Landlord shall be considered exclusive of any other remedy but shall be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter existing at law or in equity or by Statute. Further, all powers and remedies given by this Lease to Landlord may be exercised, from time to time, and as often as occasion may arise or as may be deemed expedient. No delay or omission of Landlord to exercise any right or power arising from any default shall impair any such right or power or shall be considered to be a waiver of any such default or acquiescence thereof. The acceptance of rental by Landlord shall not be deemed to be a waiver of any breach of any of the covenants herein contained or of any of the rights of Landlord to any remedies herein given. 27. LEGAL PROCEEDINGS— RESPONSIBILITIES In the event of proceeding at law or in equity by either party hereto, and if the non- defaulting party shall pursue his rights through legal proceedings, then the defaulting party shall pay all costs and expenses, including all reasonable attorneys' fees incurred by the non- defaulting party in pursuing such remedy in the event such non-defaulting party is awarded substantially the relief requested. 28. HOLD HARMLESS OF TENANT To the extent permitted by law and the Charter of the City of Fort Collins, Tenant shall be responsible for and shall indemnify, defend and hold Landlord harmless from any liabilities, damages, losses, costs, and expenses, including reasonable attorneys' fees, resulting from or arising out of the Tenant's use and possession of the leased premises, including any acts or omissions of Tenant's employees, contractors, subcontractors, or agents. Nothing herein shall be construed as a waiver of the provisions of the Colorado Governmental unity Act. 29. ASSIGNMENT OF SUB-LETTING hnMus;+y Tenant may not assign the Lease, or sub-let the leased premises without the consent of Landlord; such consent shall not be unreasonably withheld, provided, however, no such assignment or sub-letting shall relieve Tenant of any of its obligations hereunder, and performance of the covenants herein by sub-tenants shall be considered as performance pro tan to by the Tenant. 30. WARRANTY OF TITLE Landlord covenants it has good right to lease the leased premises in the manner described herein and that Tenant shall peaceably and quietly have, hold, occupy, and enjoy the premises during the term of the Lease. 31. ACCESS Landlord shall provide Tenant non-exclusive access to the leased premises through and across land and/or other improvements owned by Landlord. Landlord shall have the right to designate, during the term of this Lease, all such non-exclusive access and other common facilities of the land and/or improvements of which the leased premises are a part. 8 32. GOVERNMENTAL ACQUISITION OF PROPERTY The parties agree that Landlord shall have complete freedom of negotiation and settlement of all matters pertaining to the acquisition of the property by any governmental body, it being understood and agreed that any financial settlement respecting land to be taken whether resulting from negotiation and agreement or condemnation proceedings, shall be the exclusive property of Landlord, there being no sharing whatsoever between Landlord and Tenant of any sum received in settlement. In the event of any such governmental taking, Landlord shall have the right to terminate this lease on the date possession is delivered to the governmental body. Such taking of the property by the governmental body shall not be a breach of this lease by Landlord nor give rise to any claims in Tenant for damages or compensation from Landlord. 33. CHANGES AND ADDITIONS TO IMPROVEMENTS Landlord reserves the right at any time to make alterations or additions to the improvements of which the leased premises are a part and/or to build additions or other structures adjoining said improvements. Landlord also reserves the right to construct other building and/or improvements in the immediate area of the improvements in which the leased premises are located and to make alterations or additions thereto, all as Landlord shall determine. Easements for light and air are not included in the leasing of the leased premises to Tenant. Landlord further reserves the exclusive right to the roof of the improvements of which the leased premises are a part except as provided for in this Lease Agreement. Landlord also reserves the right at any time to relocate, vary and adjust the size of the improvements, parking areas or other common areas relating to the land and/or improvements of which the leased premises are a part, provided however, that all such changes shall be in compliance with the minimum requirements of governmental authorities having jurisdiction over the property. 34. SUBORDINATION The Tenant agrees that its Lease rights will be subordinate to those of any lending institutions making any loan upon the real property of which the leased premises are a part. Tenant further agrees to sign reasonable documents reflecting this subordination when and if requested by the Landlord. 35. OPTION TO EXTEND X Applicable _ Not Applicable Upon full and complete performance of all the terms, covenants, and conditions herein contained by Tenant and payment of all rental due under the terms hereof, Tenant shall be given the option to renew this lease for an additional term of 12 months. In the event Tenant desires to exercise said option, Tenant shall give written notice to such fact to Landlord no less than ninety (90)days or no more than one hundred twenty (120) days prior to the expiration of the then current term of this Lease. In the event of such exercise, this Lease Agreement shall be deemed to be extended for the additional period; provided, however, Landlord shall have the right to increase the basic monthly rental, notice of the amount of such increase to be given to Tenant within seven (7) days after Tenant's exercise of the option to renew. If Tenant and Landlord cannot agree to the increased rental amount prior to the expiration date of the current term, the option to renew shall expire. Any such increased rental shall be subject to adjustments and be payable as herein provided for. Landlord shall further have the right to make any further adjustments and/or assessment of charges against Tenant as herein provided for. In the event of exercise of said option, and funds retained by Landlord as herein provided for shall be continued to be so held subject to the same terms and conditions. 9 36. INTEREST OF PAST DUE OBLIGATIONS Any amount due to Landlord not paid when due shall bear interest at one and one half percent (I Y2%) per month from due date until paid. Payment of such interest shall not excuse or cure any default by Tenant under this Lease. 37. LATE CHARGE The Landlord shall have the right to collect from Tenant, in addition to any amounts due under paragraph 37 above, a monthly collection service charge for any payment due to Landlord hereunder which is delinquent three days or longer, said charge being Twenty-five and no/100ths Dollars ($25.00) or ten (10) percent of said payment, whichever sum shall be greater. 38. MEMORANDUM OF LEASE—RECORDING The parties hereto agree this Lease shall not be recorded in the office of the Clerk and Recorder of the county in which the leased premises are located. In order to effect public recordation, the parties hereto may, at the time this Lease is executed, agree to execute a Memorandum of Lease incorporated therein by reference the terms of this Lease, but deleting therefrom any expressed statement or mention of the amount of rent herein reserved, which instrument may be recorded by either party in the office of the Clerk and Recorder of the county in which the leased premises are located. 39. NOTICE PROCEDURE All notices, demands, and requests which may or are required to given by either party to the other shall be in writing and such that are to be given to Tenant shall be deemed to have been properly given if served on Tenant or an employee of Tenant or sent to Tenant by United States mail, properly sealed, stamped, and addressed to Tenant at c/o City of Fort Collins, Real Estate Services, PO Box 580, Fort Collins, CO 80522-0580, or at such other place as Tenant may from time to time designate in a written notice to Landlord; and, such as are to given to Landlord shall be deemed to be properly given if personally served on Landlord or if sent to Landlord, United States mail, properly sealed, stamped and addressed to Landlord at Front Porch Property Services, Inc, 1220 W Elizabeth #F, Fort Collins, CO 80521, or at such other place as Landlord may from time to time designate in a written notice to Tenant. Any notice given by mailing shall be effective as of the date of mailing. 40. CONTROLLING LAW The Lease, and all terms hereunder shall be construed consistent with the laws of the State of Colorado. Any dispute resulting in litigation hereunder shall be resolved in court proceedings instituted in Larimer County and in no other jurisdiction. 42. BINDING UPON SUCCESSORS The covenants and agreements herein contained shall bind and inure to the benefit of Landlord and Tenant and their respective successors. This Lease shall be signed by the parties in duplicate, each of which shall be a complete and effective original Lease. 43. PARTIAL INVALIDITY If any term, covenant or condition of this Lease or the application thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this Lease of the application of such term, covenant or condition to persons and circumstances other than those to which it has been held invalid or unenforceable, shall not be affected thereby, and each term, covenant and condition of this Lease shall be valid and shall be enforced to the fullest extent permitted by law. 44. CONDITION OF SPACE 10 With the exception of the changes, additions and corrections herein noted, Tenant agrees to accept this space"as is". Any changes desired by Tenant in addition to those listed and agreed to by Landlord shall be done at the sole expense of the Tenant unless otherwise agreed in the addendum to this Lease attached hereto. 45. MISCELLANEOUS All paragraph headings are for purposes of reference and shall not affect the true meaning and intent of the terms hereof. Throughout this Lease, wherever the words "Landlord"and "Tenant' are used, they shall include and imply to the singular, plural, persons both male and female, companies, partnerships and corporations, and in reading said Lease, the necessary grammatical changes required to make the provisions hereof mean and apply as aforesaid shall be made in the same manner as though originally included in said Lease. 46. ADDITIONAL PROVISIONS A IN WITNESS WHEREOF,the parties have executed this Lease as of ,P 1 2006. LA D: onda J Burry Front Porch Property Services TENANT: City of Fort Collins, a lorad unicipal Corporat' By: t .E$� Darin Atteberry, City Mana A 71!0.�LS�,�.:� City Clerk APPRO ED AS TO FORM: Assists t Ci y Attor ey 11 i EXHIBIT x .....__................ ....._ _......._ _._.. ... _..........._....-... .._.... i Wood Deep 4.2s, 9.5 md- #2 1st Floor U1 US seat t L#4 1133' #3 117S' 13.73' . . IT W #2101 , an a.M 1T 2nd Floor 823 lass' #24 ,......ram—33' Measwomennt are appfaxi+gWe I i7. M/6716'd SOUR ZL7 6LB(Xtl3) 6aOTA-QS FX.aatlo.+d kpiod po,y 66:LX (63M)SBBZ-60-ABN ORDINANCE NO. 143, 2007 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROVING THE TERMS OF THE CITY'S LEASE OF 612 SOUTH COLLEGE AVENUE, SUITE 22, FORT COLLINS, COLORADO WHEREAS,on January 1,2006,the City entered into a lease agreement(the"Initial Lease") whereby the City leased approximately 388 square feet of space for City offices at 612 South College Avenue, Suite 22, Fort Collins, Colorado (the "Property") from Front Porch Property Services, Inc. ("Front Porch"); and WHEREAS, on November 29, 2006, the City and Front Porch entered into an Agreement to Amend/Extend Lease("First Extension") which extended the Initial Lease for an additional one year term on the same terms and conditions except for an increase in rent; and WHEREAS,on June 1,2007,Front Porch assigned the Initial Lease to 1 st Realty Associates, Inc. ("Landlord"); and WHEREAS, the Landlord has agreed to extend the Initial Lease for an additional one year term,with the option to renew for two additional one year terms,pursuant to a new Lease Extension and Modification Agreement ("Second Extension); and WHEREAS,under the Second Extension, the annual rent for the first year of the extension term would be $5,484 annually or $457 per month, and would increase by the percentage of the Consumer Price Index for each additional one year term; and WHEREAS, as a condition of the Second Extension, the Landlord also wants the City to begin paying a portion of the real property taxes for the Property; and WHEREAS, in order for a property rented by a municipality to be exempt from taxation, Section 31-15-801 of the Colorado Revised Statutes requires 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 WHEREAS, a copy of the Initial Lease, First Extension and proposed Second Extension (collectively, the"Lease Agreement") is on file in the Office of the City Clerk; and WHEREAS,the City Council wishes to approve the Lease Agreement by this Ordinance so that the Property may be removed from the tax rolls. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that the City Council hereby approves the Lease Agreement for the Property in substantially the form as is on file in the Office of the City Clerk,the terms of which include a lease term of one year with the option for two 12-month extensions at an initial annual rent of$5,484 or $457 per month, along with such other conditions or modifications as the City Manager, in consultation with the City Attorney, determines to be necessary to protect the interests of the City. Introduced, considered favorably on first reading, and ordered published this 4th day of December, A.D. 2007, and to be presented for final passage on the 18th day of December, A.D. 2007. Mayor ATTEST: City Clerk Passed and adopted on final reading on the 18th day of December, A.D. 2007. Mayor ATTEST: City Clerk