HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 01/07/2020 - FIRST READING OF ORDINANCE NO. 012, 2020, AMENDINGAgenda Item 14
Item # 14 Page 1
AGENDA ITEM SUMMARY January 7, 2020
City Council
STAFF
Keith Hanson, Real Estate Manager
Ingrid Decker, Legal
SUBJECT
First Reading of Ordinance No. 012, 2020, Amending Section 23-113 of the Code of the City of Fort Collins to
Authorize the City Manager to Approve Subleases of City Property.
EXECUTIVE SUMMARY
The purpose of this item is to amend Section 23-113 of City Code to authorize the City Manager, or his or her
designee, to provide written consent, at his or her sole discretion, to a tenant of City-owned property to
sublease all or a portion of the property for a definite term of five years or less where the original lease was
approved by the City Council and the terms of such lease do not restrict, condition or prohibit subleasing.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
BACKGROUND / DISCUSSION
Section 23-113 of the City Code authorizes the City Council to lease any and all interests in real property
owned by the City and authorizes the City Manager to lease City-owned real property for a definite term of five
years or less. Instances have occurred where a tenant leasing property from the City for more than five years,
in accordance with an ordinance or resolution approved by the City Council, will ask to sublease all or a portion
of that property to a subtenant. Leases typically provide a tenant the right to sublease to a subtenant with the
consent of the landlord. The City Code does not currently address whether the City Manager may approve a
sublease of City property.
City staff recommends that Section 23-113 of the City Code be amended to state that if the City Council has
approved a lease by resolution or ordinance, it will create a presumption that the tenant may sublease all or a
portion of the property for a term of five years or less, with the approval of the City Manager, or someone the
City Manager may delegate that authority to, such as the Operation Services Director, unless the terms of the
tenant’s lease restrict, condition or prohibit subleasing. This proposed Code amendment will provide for the
expedition of consent in an administrative manner, which will reduce the cost and time spent for staff to
prepare a specific request for City Council consideration. Authorizing the City Manager to approve subleases
for a term of five years or less is consistent with the City Manager’s authorization to approve initial leases for a
term of five years or less, and to approve licenses to enter for a term of five years or less.
CITY FINANCIAL IMPACTS
The proposed amendment to the Code would not result in any direct costs to the City and would reduce the
amount of time staff will need to administer City Manager consent for future sublease requests.
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ORDINANCE NO. 012, 2020
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING SECTION 23-113 OF THE CODE OF THE CITY
OF FORT COLLINSTO AUTHORIZE THE CITY MANAGER
TO APPROVE SUBLEASES OF CITY PROPERTY
WHEREAS, Section 23-113 of the City Code authorizes the City Council to lease any
and all interests in real property owned by the City, and authorizes the City Manager to lease
interests in real property owned by the City for a definite term of five years or less; and
WHEREAS, sometimes a tenant leasing property from the City in accordance with an
ordinance or resolution approved by the City Council will ask to sublease all or a portion of that
property to a subtenant; and
WHEREAS, the City Code does not currently address whether the City Manager may
approve a sublease on City property if the City Council did not specifically grant the tenant the
right to sublease in the ordinance or resolution approving the lease; and
WHEREAS, City staff is recommending that the City Council amend Section 23-113 of
the City Code to state that if the City Council has approved a lease it creates a presumption that
the tenant may sublease all or a portion of the property for a term of five years or less, with the
approval of the City Manager or whoever the City Manager may designate, such as the Operation
Services Director, unless the terms of the tenant’s lease restrict, condition or prohibit subleasing;
and
WHEREAS, the City Council finds that such an amendment is in the best interests of the
City and its citizens.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. That the City Council hereby makes and adopts the determinations and
findings contained in the recitals set forth above.
Section 2. That Section 23-113 of the Code of the City of Fort Collins is hereby
amended by the addition of a new subsection (c) to read as follows:
Sec. 23-113. - Leases.
…
(c) A lease approved by the City Council pursuant to this Section or § 23-111 is presumed to
include the right of the tenant to sublease all or a portion of the leased property for a definite
term of five (5) years or less with the written consent, and in the sole discretion, of the City
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Manager or the City Manager’s designee, unless the terms of such lease further restrict, condition
or prohibit subleasing.
Introduced, considered favorably on first reading, and ordered published this 7th day of
January, A.D. 2020, and to be presented for final passage on the 21st day of January, A.D. 2020.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
Passed and adopted on final reading on the 21st day of January, A.D. 2020.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk