HomeMy WebLinkAbout055 - 07/17/2012 - AUTHORIZING THE LEASE OF CITY-OWNED PROPERTY AT 1715 WEST MOUNTAIN AVENUE TO THE FORT COLLINS HOUSIN ORDINANCE NO. 055, 2012
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE LEASE OF CITY-OWNED PROPERTY
AT 1715 WEST MOUNTAIN AVENUE TO
THE FORT COLLINS HOUSING AUTHORITY
WHEREAS, the City is the owner of the property located at 1715 West Mountain
Avenue, Fort Collins, Colorado, legally described as Lot 1, Fort Collins Housing Authority
Subdivision (the "Property"); and
WHEREAS, on January 4, 1977, the City and the Fort Collins Housing Authority (the
"Authority") entered into a lease agreement for the Property for 40 years (the "1977 Lease"); and
WHEREAS, the Authority is completing a remodeling project for its administrative
headquarters located on the Property; and
WHEREAS, in order for the Authority to obtain permanent financing for the remodeling
project, the Authority's lender is asking that the 1977 Lease be amended, modified, extended and
collaterally assigned to the lender as security; and
WHEREAS, City staff and the Authority have negotiated a new Lease Agreement, a copy
of which is on file in the office of the City Clerk and available for review (the "Lease
Agreement"); and
WHEREAS, key terms of the proposed Lease Agreement include the following:
• The term of the Lease would be 40 years.
• The Authority would pay rent in the amount of$1,000 for the 40 year term of the
Lease.
• The Authority's lender would impose a lien on the Authority's leasehold estate to
secure its loan for the remodeling project.
• The Authority would be responsible for all utility costs and for maintenance of
the Property except for a parking area shared with the City.
• If the Authority's lender were to foreclose on the Authority's leasehold interest,
the Lender and any subsequent purchaser of the leasehold interest would assume
the Authority's obligations under the Lease and rent would be adjusted to a
market amount.
• Upon termination of the Lease the Authority's improvements would become the
property of the City; and
WHEREAS, leasing the Leased Premises to the Authority for the uses described in the
Lease Agreement serves the valuable public purpose of providing adequate housing for residents
of the City otherwise unable to obtain such housing; and
WHEREAS, Section 23-111 of the City Code authorizes the City Council to sell, convey
or otherwise dispose of any interest in real property owned in the name of the City provided that
the City Council first finds, by ordinance, that such disposition is in the best interests of the City.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS, as follows:
Section 1. That the City Council hereby finds that leasing the Property to the
Authority pursuant to the terms of this Ordinance is in the best interests of the City.
Section 2. That the City Manager is hereby authorized to execute a lease agreement
for the Property consistent with the terms of this Ordinance, together with such additional terms
and conditions as the City Manager, in consultation with the City Attorney, determines to be
necessary or appropriate to protect the interests of the City or effectuate the purposes of this
ordinance, including, but not limited to, any necessary changes to the legal description of the
Property, as long as such changes do not materially increase the size or change the character of
the property being leased.
Introduced, considered favorably on first reading, and ordered published this 5th day of
June, A.D. 2012, and to be presented for final passage on the 17th day of July, A.D. 2012.
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Passed and adopted on final reading on the 17th day of July, A.D. 2012.
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