HomeMy WebLinkAbout103 - 06/19/2001 - AUTHORIZING THE CITY MANAGER TO AMEND THE LONG-TERM LEASE OF REAL PROPERTY ADJACENT TO THE CIVIC CEN ORDINANCE NO. 103, 2001
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE CITY MANAGER TO, FROM TIME TO TIME,
AMEND THE LONG-TERM LEASE OF REAL PROPERTY
ADJACENT TO THE CIVIC CENTER PARKING STRUCTURE
TO PHELPS PROGRAM MANAGEMENT, LLC, FOR THE
DEVELOPMENT OF COMMERCIAL SPACE
AND RELATED EASEMENTS
WHEREAS,the City of Fort Collins owns that certain real property located on Block 21,in
the City of Fort Collins, adjacent to the Civic Center Parking Structure (the "Parking Structure")
property more particularly described in Exhibit "A," on file in the office of the City Clerk, and
incorporated herein by this reference (the "Property"); and
WHEREAS,in order to provide for the development of private commercial space compatible
with and incorporated into the design of the Parking Structure (the "Commercial Space"), City
Council has approved by its adoption of Ordinance No. 145, 1998, and the City Manager has
executed as of September 14, 1998,a long-term lease of the Property(the"Ground Lease")to Phelps
Program Management, LLC ("PPM"), an affiliate of Hensel Phelps Construction Company, the
design-builder of the Parking Structure under a separate contract with the City; and
WHEREAS,the City Council has previously determined that the Ground Lease is beneficial
to the City and will promote the public purpose of enhancing and contributing to a viable and active
downtown and Civic Center in Fort Collins; and
WHEREAS, the initial term of the Ground Lease, including two ten-year extensions at
PPM's sole option, will end in the year 2039, with a right of first option granted to PPM for an
additional subsequent term,if the City chooses to continue to lease out the Commercial Space; and
WHEREAS,the Ground Lease provides for the coordination of the design and construction
of the Commercial Space with that of the Parking Structure, and requires that all costs for such
design and construction be borne by PPM; and
WHEREAS, in exchange for said design and construction, along with responsibility for
management of the Commercial Space during the term of the Ground Lease, the Ground Lease
provides that PPM shall be entitled to sublease units in the Commercial Space for use in a manner
and consistent with those certain conditions set forth in the Ground Lease; and
WHEREAS,the Ground Lease further grants to PPM access easements and cross easements
required for its use of the Commercial Space,including terms for a shared wall and floor/ceiling(the
"Easements"), which Easements were separately documented and executed as of September 22,
1998, and recorded on October 23, 1998; and
WHEREAS,the Ground Lease and Easements are consistent with the terms of the financing
arrangements for the Parking Structure approved by the Council in Ordinance No. 128, 1998, and
with the design and construction of the Parking Structure; and
WHEREAS, the City Manager has further executed a First Amendment to Ground Lease,
and an Amendment to Reciprocal Easement Agreement,each dated November 7,2000,pursuant to
his authority under Ordinance No. 145, 1998,to incorporate into the Ground Lease and Amendments
such other lease and easement provisions as the City Manager, in consultation with the City
Attorney, deems appropriate to protect the interests of the City, consistent with the general lease
terms that were outlined at the time of approval(the"First Amendments"),which First Amendments
are on file in the Office of the City Clerk and available for review and inspection; and
WHEREAS, due to the nature of the commercial uses for which the Commercial Space has
been leased, and the need for changes to the Ground Lease over time based on the needs and
circumstances of specific commercial tenants, which will change over time, City staff anticipates
that ongoing amendment to the terms of the Ground Lease and Easements will be required to address
operational, maintenance or use requirements and restrictions; and
WHEREAS, in order to allow the City Manager and City staff to administratively manage
the lease relationship for the Commercial Space and address the changing needs and circumstances
as appropriate in a prompt and efficient manner, staff has requested that the City Council authorize
the City Manager to,from time to time,make certain types of modifications to the Ground Lease and
Easements without further City Council action; and
WHEREAS,pursuant to Section 23-114 of the Code of the City of Fort Collins,the Council
is authorized to lease any and all interests in real property owned in the name of the City,provided
that Council first finds that the lease is in the best interests of the City; and
WHEREAS, Section 23-111 of the City Code provides that the City Council is authorized
to sell, convey or otherwise dispose of real property owned by the City,provided the Council first
finds by Ordinance that any sale or disposition of real property owned by the City is in the best
interests of the City of Fort Collins.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1. That the City Council hereby ratifies and approves the First Amendments, and
finds that the Ground Lease and Easements, as modified by the First Amendments, are in the best
interest of the City.
Section 2. That the City Manager is hereby authorized,without further action by the City
Council, to enter into such amendments and modifications to the Ground Lease and Easements, as
previously amended by the First Amendments, in order to address or modify operational,
maintenance or use requirements and restrictions for the use of the Commercial Space, as the City
Manager, in consultation with the City Attorney, deems appropriate to protect the interests of the
City, provided that:
a. no such amendment shall increase the physical area of City property subject
to the Ground Lease or Easements;
b. no such amendment shall allow use of the Commercial Space not consistent
with applicable land use and zoning requirements;
C. no such amendment shall result in a net increase in private use of the Parking
Structure; and
d. no such amendment shall result in a net increase in the City's financial
obligations under the Ground Lease or Easements.
Introduced,considered favorably on first reading,and ordered published this 5th day of June,
A.D. 2001, and to be presented for final passage on the 19th day of June, A.D. 2001.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading this 19th day of June, A.D. 2001.
Mayor o,%Tip j
ATTEST:
City Clerk