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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