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HomeMy WebLinkAbout1983-044A-03/01/1983-AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AMENDMENT TO THE LEASE AGREEMENT WITH THE AIRWEST CORP RESOLUTION 83-44A OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AMENDMENT TO THE LEASE AGREEMENT WITH THE AIRWEST CORPORATION WHEREAS, on October 15, 1981, the City and the Airwest Corporation, formerly Airwest Helicopters, Inc , together with the City of Loveland, Colorado, entered into an agreement whereby the Airwest Corporation ac- quired a lease to certain property located at the Fort Coll i ns-Lovel and Airport, and WHEREAS, the Airwest Corporation has indicated to the City that it is unable to comply with certain of the terms and conditions of said Lease Agreement and has proposed certain changes thereto, and WHEREAS, the City of Fort Collins is desirous of making such changes in order to secure the continued provision of services by the Airwest Corporation to the general public NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS that the City Manager be, and he hereby is, authorized to enter into an Amendment to that Lease Agreement executed between the City of Fort Collins, the City of Loveland and the Airwest Corporation, formerly Airwest Helicopters, Inc , such Agreement dated October 15, 1981, upon the following general terms and conditions A On or before Se tember 1 1983, the Airwest Corporation shall pay to the cities the star of Twenty-§ix Thousand Nine Hundred and Twenty-Two Dollars (E26,922 00) as interest for the period from September 1, 1982 to June 18, 1983, at the rate of eleven and one-half percent (11 1/2%) per annum as set forth in Paragraph 5(a) of said Lease Agreement B In lieu of payment on March 1, 1983, of the sum of Three Hundred Thousand Dollars ($300,000 00) as provided in said Lease Agreement, the Airwest Corporation shall pay monthly, in arrears, interest on said Three Hundred Thousand Dollars (E300,000 00) , from June 18, 1983 until March 1, 1984, when the sum of Three Hundred Thousand Dollars ($300,000 00) shall be due and payable in full , if not sooner paid The rate of interest shall be eleven and one-half percent (11 1/2%) per annum during the period from June 18, 1983 to September 1, 1983, and thereafter at a rate two (2) points above the "prime rate" charged by major Denver banks to their most "credit- worthy" borrowers for the period of September 1, 1983 to March 1, 1984, however, upon the limitation that such rate, as adjusted, shall in no event exceed fifteen percent (15%) per annum C The Airwest Corporation shall agree that in the event it subleases any of the premises (including any areas as to which it may have exercised 1 an option to lease as set forth in said Lease Agreement, to any other person, firm or corporation for the purpose of allowing such other person, firm or corporation to occupy the same for aeronautical-related activi- ties) , the square-foot rental rate to be paid by Airwest for the area occupied by such other persons, firms or corporations shall be increased by $ 05 for the remainder of the term of the lease, provided such rental will not exceed the most recent rate charged by the cities for comparable property The foregoing increase shall not apply to FBO activities related to providing aircraft sales and service, refueling, rent parking and tie-down services, all of which activities are made available to the general public, and except leasing or renting of office space to others providing or offering services and commodities to the general public D The Airwest Corporation shall have the use of the cities' owned fuel truck now used at the Airport until June 1, 1983, upon the condition that the Airwest Corporation shall perform all required maintenance on said fuel truck and that said fuel truck shall be returned to the cities in the same condition as it now is, fair wear and tear excepted E The cities shall permit the assignment by the Airwest Corporation of said Lease Agreement, as amended, in its entirety to Bill Ringer and Gene Greenwalt as tennants in common The Airwest Corporation shall agree to request approval of such assignment by any court having supervision over corporate operations and, upon such approval , Airwest Corporation shall have thirty (30) days in which to assign said agreement as consented to by the cities In the event that no such assignment takes place within three (3) months of the date hereof or notice of such assignment is not given to the cities, then consent shall be deemed automatically withdrawn No subsequent assignment of the Lease Agreement, as amended, shall be made thereafter without the consent of the cities F Nothing in the Amendment to Lease Agreement shall be deemed to settle or compromise any claims, waive or forgive any defaults or otherwise affect any right or duties of the parties, each to the other, arising out of the said Lease Agreement, except as specifically included by Amendment G All of the other terms and conditions of said Lease Agreement shall remain in full force and effect Passed and adopted at a regular m ng of the City Council held this 1st day of March, A D 1983 Al Assistant May ATTEST in:l City Clerk -2-