HomeMy WebLinkAbout143 - 12/18/2007 - APPROVING THE TERMS OF THE CITYS LEASE OF 612 SOUTH COLLEGE AVENUE, SUITE 22 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.
May
ATTEST:
City Clerk
Passed and adopted on final reading on the 18th day o c ber, A.D. 2007.
i
Mayor
ATTEST:
z
City Clerk