Loading...
HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 01/15/2013 - FIRST READING OF ORDINANCE NO. 004, 2013, AUTHORIZDATE: January 15, 2013 STAFF: Helen Matson Kayla Ballard AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 12 SUBJECT First Reading of Ordinance No. 004, 2013, Authorizing the Lease of City-owned Property at 208 North Howes Street and a Portion of 230 Laporte Avenue for up to Five Years. EXECUTIVE SUMMARY This Ordinance will authorize a lease of City-owned property located at 208 North Howes Street and a portion of 230 Laporte Avenue for up to five years. BACKGROUND / DISCUSSION The current tenant has leased this property since 2008 and desires to continue leasing both spaces. Staff recommends that 208 North Howes and a portion of the property at 230 Laporte Avenue continue to be leased to the existing tenant at current market rates, no less than $5.56 per square foot (interior space), for a period of up to five years to offset maintenance expenses and generate revenue. However, the City retains the right to terminate the lease upon one year’s notice. FINANCIAL / ECONOMIC IMPACTS Utilities costs are the obligation of the Tenant and the City shall be responsible for the maintenance costs. The City will receive a minimum of $23,000 annually in gross rent, which will be used to cover operation expenses and the balance shall go to the general fund. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance of First Reading. ATTACHMENTS 1. Location map ORDINANCE NO. 004, 2013 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE LEASE OF CITY-OWNED PROPERTY AT 208 NORTH HOWES STREET AND A PORTION OF 230 LAPORTE AVENUE FOR UP TO FIVE YEARS WHEREAS, the City is the owner of properties located at 208 North Howes Street and 230 Laporte Avenue, which two properties together are legally described as Lots 36 and 37, Block 32, Fort Collins, Larimer County, Colorado (together, the "Property''); and WHEREAS, on December 18, 2007, the City Council approved Resolution 2007-110 authorizing the lease of the portion of the Property located at 208 North Howes Street for up to two years; and WHEREAS, on March 4, 2008, the City Council adopted Ordinance No. 021, 2008 authorizing the lease of 208 North Howes Street and a portion of 230 Laporte Avenue, consisting of a total of 4,205 square feet (together, the "Premises") for a period of up to five years; and WHEREAS, the City has no present use for the Premises, and City staff is therefore recommending that it be leased at a current market rate of no less than $5.56 per square foot to offset the City's maintenance expenses and generate revenue; and WHEREAS, the Premises would include the use of a fenced outdoor storage area on the south side of the 208 North Howes Street building; and WHEREAS, the lease of the Premises would be terminable by the City on one year's notice to the tenant; and WHEREAS, under Section 23-111(a) of the 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 Premises under the terms listed above is in the best interests of the City. Section 2. That the City Manager is hereby authorized to execute a negotiated lease agreement for the Premises on terms and conditions consistent with this Ordinance, 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, including any necessary changes to the legal description of the Premises, as long as such changes do not materially increase the size or change the character of the Premises. Introduced, considered favorably on first reading, and ordered published this 15th day of January, A.D. 2013, and to be presented for final passage on the 5th day of February, A.D. 2013. _________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on the 5th day of February, A.D. 2013. _________________________________ Mayor ATTEST: _____________________________ City Clerk