HomeMy WebLinkAbout064 - 06/04/1991 - AUTHORIZING AN AGREEMENT FOR THE FINANCING BY LEASE PURCHASE OF REAL PROPERTY AND IMPROVEMENTS LOCAT ORDINANCE NO. 64, 1991
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE CITY MANAGER TO ENTER INTO AN
AGREEMENT FOR THE FINANCING BY LEASE PURCHASE OF
REAL PROPERTY AND IMPROVEMENTS LOCATED AT
2554 MIDPOINT DRIVE
FORT COLLINS, COLORADO
WHEREAS, the City is authorized under the provisions of Title 31 , Article
15, Part 8, C.R.S. , to acquire necessary land, buildings, equipment and other
property for its governmental and proprietary purposes under the provisions of
a long-term rental or leasehold agreement with an option to purchase such land
or property and to provide for the payment of said land or property from any
available municipal income; and
WHEREAS, Dean Crockett Pitcairn is the owner of the following described
real property and improvements located at 2554 Midpoint Drive, Fort Collins,
Colorado:
Lot 20, Prospect Industrial Park, in the City of Fort Collins,
according to the recorded plat thereof, County of Larimer, State of
Colorado,
hereinafter referred to as the "property" ; and
WHEREAS, the City is negotiating with Norwest Investment Services, Inc. ,
to lease the property to the City; and
WHEREAS, the City Council has determined that the City is in need of the
property in order that it may be used by Police Services as a training facility
and shooting range and that such use furthers the governmental purpose of
providing for the public health, safety and welfare; and
WHEREAS, the City Council has determined that it is in the best interest
of the City to lease the property from Norwest Investment Services, Inc. , which
is also providing financing for the acquisition of said property; and
WHEREAS, the City desires to enter into a lease purchase agreement with
respect to the leasing and financing of said property; and
WHEREAS, the City Council has determined that the lease payments in the
sum of Twelve Thousand Three Hundred Fifty-One and 82/100 Dollars ($12,351 .82)
per quarter are reasonable and proper and represent the fair rental value of the
subject property and sufficient funds to make such lease payments are
appropriated and available for expenditure in the budget of Police Services.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS
as follows:
Section 1 . That the City Manager be, and hereby is, authorized to enter
into a lease purchase agreement with Norwest Investment Services, Inc. , for the
above-described property in accordance with the following terms and provisions:
A. The agreement shall be contingent upon Norwest Investment Services,
Inc. , acquiring fee simple title to the property and shall be for an original
term from the date of execution of the agreement through December 31, 1991 . The
agreement shall provide for renewable one (1) year terms thereafter, with each
such renewal term to be subject to the annual appropriation of necessary funds,
and the final term to end no later than December 31, 2001 . The total lease
term, including the original and all renewal terms, shall not exceed the useful
life of the property.
B. The City shall make equal , quarterly payments for each of the
consecutive terms of the agreement. If the City leases the property for the
original term and all successive renewal terms, the payment to Norwest
Investment Services, Inc. , will total the principal sum of Three Hundred Fifty-
one Thousand Nine Hundred Thirty Dollars ($351,930) , plus interest at a fixed
rate equal to seven and eight hundredths percent (7.08%) per year. The City
shall have an option to purchase the property on any quarterly payment date of
any term. The option to purchase shall be exercised by paying the quarterly
payment due on said date and the unpaid principal due after said date. If the
City renews the agreement for all the renewal terms and makes all payments
during said terms, the City shall be deemed to have exercised the option to
purchase said property.
C. The agreement shall not constitute an indebtedness or a pledge of the
City's revenue.
Section 2. That the effective date of this ordinance shall be July 5,
1991 .
Introduced, considered favorably on first reading, and ordered published
this 21st day of May, A.D. 1991, and to be presented for final passage on the
4th day of June, A.D. 1991.
RSVUW w /lti
Mayor
ATTEST:
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City CI&k�
Passed and adopted on final reading this 4th day of June, A.D. 1991 .
r
Maayy or
ATTEST:
City Clerk