Loading...
HomeMy WebLinkAbout2020 Resolution No. 014RESOLUTION NO. 14 SERJES OF 2020 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ENGLEWOOD, COLORADO APPROVING A PREMISES LEASE AGREEMENT WITH MUSEUM OF OUTDOOR ARTS (MOA). WHEREAS , in 1999 Englewood and MOA entered into a Govermnental Agreement and Sublease wherein MOA would sublease from CITY certain space in the Civic Center Building for the operation , maintenance and enhancement of a world-class museum and art education program at the City Center; WHEREAS , begim1ing in 1999 MOA has developed programming for the Englewood community including art education-based exhibitions , special events , Design and Build arts education internships , gallery exhibitions , special programs , concerts , workshops , and temporary and permanent art installations; WHEREAS, since the parties entered into the original Agreement in 1999 , MOA has installed 40 public sculptures , spent an average of $400 ,000 per year in arts programming , workshops, conservation , and community events , and has spent over $900 ,000 for all tenant finish and improvements at its City of Englewood location; WHEREAS , MOA 's current collection in Englewood , including the Civic Center and City Center area , is comprised of 34 outdoor artworks and 6 indoor artworks ; WHEREAS, MOA spends approximately $50 ,000 ammally in sculpture conservation and repair , and in 2018 MOA invested $122,913 in art conservation efforts on the art installations in the City of Englewood , including the Brooklyn Bridge , Bathroom People , Horizon , Duo , Bagatelle , and various bronze , metal and stone sculptures ; WHEREAS , MOA has been recognized tlu·oughout the State for its efforts in both "Arts " and "Education", and has earned the Governor 's Award for Excellence in the Arts , and the Museum Educator of the Year award; WHEREAS, MOA is active in Englewood schools , providing educational outreach tlu-ough aiiist workshops in the MOA studios , artist workshops within Englewood schools , grants for arts education projects , site specific art installations and free student touring; WHEREAS , MOA currently offers year-round Artist in Residence progranuning , three sessions of its paid arts education internship , Design and Build , artist demonstrations , lectures , and events at no charge to the public. WHEREAS , MOA has developed a three-year exhibition , conservation , and events progranm1ing plan for its Englewood location , which is comprised of major arts exhibitions Page I 1 including a Robert Rauschenberg retrospective , increased collaboration on public art and community placemaking events with the City of Englewood , Englewood Arts , and the Englewood schools , and interactive workshops , lectures , and artist demonstrations with planned expenditures of approximately $400 ,000 in each calendar year. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ENGLEWOOD, COLORADO, THAT: Section 1. Approval. The Premises Agreement and Sublease , as attached hereto as Exhibit A , is hereby approved , and the Mayor is hereby authorized to execute the same on behalf of the City . Section 2. Effective Date. This Resolution shall take effect upon its approval by the City Council. Section 3. Savings Clause . If any section , paragraph , clause or provision of this Resolution shall for any reason be held to be invalid or unenforceable , the invalidity or unenforceability of such section, paragraph , clause or provision shall not affect any of the remaining issues of this Resolution. ADOPTED AND APPROVED this 6th day of April , 2020 . ~t~ ATTEST: I, Stephanie Carlile , City Clerk for the City of Englewood , Colorado , hereby certify the above is a true copy ofResolution No.14 , Series of2 Page I 2 PREMISES AGREEMENT AND SUBLEASE THIS GOVERNMENT AL AGREEMENT AND SUBLEASE , (hereinafter referred to m its entiret.Y, as "Agreement"), made and entered into this ~th day of :f\pn I 2020 , by and between the City of Englewood , Colorado (hereinafter referred to as "CITY "), the Englewood Environmental Foundation , Inc. (hereinafter referred to as "EEF "), and The Museum of Outdoor Arts (hereinafter referred to as "MOA''). CITY and EEF are herein collectively referred to as "Englewood". RECITALS WHEREAS , in 1999 Englewood and MOA entered into a Governmental Agreement and Sublease wherein MOA would sublease from CITY certain space in the Civic Center Building for the operation , maintenance and enhancement of a world-class museum and art education program at the City Center; WHEREAS , begirming in 1999 MOA has developed programming for the Englewood community including art education-based exhibitions , special events , Design and Build arts education internships , gallery exhibitions , special programs , concerts , workshops , and temporary and permanent art installations ; WHEREAS, since the parties entered into the original Agreement in 1999 , MOA has installed 40 public sculptures , spent an average of $400 ,000 per year in arts progranm1ing , workshops , conservation , and community events , and has spent over $900 ,000 for all tenant finish and improvements at its City of Englewood location ; WHEREAS , MOA 's current collection in Englewood, including the Civic Center and City Center area, is comprised of 34 outdoor artworks and 6 indoor artworks ; WHEREAS , MOA spends approximately $50 ,000 annually in sculpture conservation and repair , and in 2018 MOA invested $122 ,913 in art conservation efforts on the art installations in the City of Englewood , including the Brooklyn Bridge, Bathroom People, Hori z on , Duo , Bagatelle , and various bronze , metal and stone sculptures ; WHEREAS , MOA has been recognized tlu·oughout the State for its efforts in both "Arts " and "Education", and has earned the Governor 's Award for Excellence in the Arts , and the Museum Educator of the Year award ; WHEREAS , MOA is active in Englewood schools , providing educational outreach tlu·ough artist workshops in the MOA studios , artist workshops within Englewood schools , grants for arts education projects , site specific art installations and free student touring ; (COE/MOA Premises Lease (2020)) Page 1 of 22 WHEREAS , MOA currently offers year-round Artist in Residence programming, three sessions of its paid arts education internship , Design and Build , artist demonstrations , lectures , and events at no charge to the public. WHEREAS , MOA has developed a three-year exhibition , conservation, and events programming plan for its Englewood location , which is comprised of major arts exhibitions including a Robert Rauschenberg retrospective , increased collaboration on public art and community placemaking events with the City of Englewood, Englewood Arts , and the Englewood schools, and interactive workshops, lectures, and artist demonstrations with planned expenditures of approximately $400 ,000 in each calendar year. NOW THEREFORE, in consideration of the mutual covenants and agreements , and the promises herein contained the Parties agree as follows: ARTICLE I GRANT AND TERM 1.1 Museum Premises. In consideration of the rents, covenants and agreements herein set forth and reserved for the performance of MOA, CITY does hereby sublease unto MOA the space on the second floor of the Civic Center Building, occupied and used by MOA as identified on Exhibit B of this Agreement , Map of MOA Museum Premises , located at 1000 Englewood Parkway, Englewood , Colorado , hereinafter the "Museum Premises". The Museum Premises contain approximately 10 ,000 square feet of rentable space. 12 Term. The Term of this Agreement shall conm1ence upon the date the Parties execute this Agreement , and shall terminate at 12:00 midnight, on December 31 si, 2022, unless extended pursuant to Article XIV. 13 Participation by Eni:Iewood Environmental Foundation. The Parties hereby acknowledge that upon the retirement of the Certificates of Participation, the Englewood Environmental Foundation (EEF) shall no longer be a Party to this Agreement , and any references to EEF herein shall have no force or effect. ARTICLE II RENT AND IN-KIND SERVICES 2.1 Rent. MOA agrees to pay the CITY at the office of the CITY in the Civic Center Building or at such other place as CITY may designate in writing, annual rent for each sublease year for said premises as follows: (a) The sum of One Dollar per year payable in advance on the date of this Agreement and thereafter on the Agreement datethereafter until this Agreement is terminated. (b) Collaboration on public art and community placemaking events with the City of Englewood, Englewood Arts , and the Englewood schools , to assist the City with its increased branding and community building efforts including, but not limited to , participation in the Sounds of Summer event series and annual Englewood Block Party , site-specific placemaking events planned by the CITY , or an Englewood Holiday Tree (COE/MOA Premises Lease (2020)) Page 2 of22 Lighting event. ( c) Provide educational workshops , artist demonstrations , and gallery activations at no cost for the conmrnnity including arts education outreach and touring incentives for Englewood schools. Host at least one gallery exhibition/installation annually with supplemental programming (i .e . workshop , guest lecture , panel discussion or artist demonstration) as appropriate. Conduct at least one session of Design and Build education programming in the MOA galleries or in partnership with local Englewood high schools. Collaborate with the CITY to produce the Englewood Calendar Art Show. Continue free or reduced cost touring for all Englewood schools , senior groups , and special needs groups . Enable Englewood residents to visit exhibitions at no charge as part of community-wide free days as currently supported by the Scientific and Cultural Facilities District grants. Continue outreach programming and artist workshops with Englewood schools. MOA will also conduct special programming, concerts , temporary exhibitions , and events when annual progranm1ing scope , directives from the board of trustees , and annual budgets permit these additional activities (d) Maintain a public art collection of no fewer than thi1ieen (13) outdoor artworks with a combined value of at least five hundred thousand ($500 ,000) dollars. 2.2 Sublease Year Defined. The term "sublease year ', as used herein , is hereby defined to mean and include those periods of the term which for the first sublease year begin on the date of this Agreement, as first above written, and ends on the last day of the 12 th calendar month during which the Agreement will have been in effect, and for subsequent years begins immediately after the end of the first sublease year and on the anniversary date of such beginning in each year thereafter, and ends twelve (12) months later in each subsequent year. 2.3 Deposit. No deposit is required hereunder. ARTICLE III CONDITIONS OF PREMISES 3.1 MOA's Obligations. MOA shall continue to occupy only those premises currently in use by MOA and will maintain those premises in good order. All finish and remodeling is to be performed by MOA at MOA's expense. Work shall be completed in a good and workmanlike manner , free of any liens for labor and materials , and in accordance with all building codes and other regulations of CITY. CITY shall grant to MOA all required building permits , subject to compliance with CITY building code requirements. (a) All alterations , additions , improvements or fixtures of a permanent nature , made by either party at the expense of MOA (except only movable office furniture and other personal items not attached to the Building) shall be deemed a part of the real estate and the property of CITY and shall remain upon and be surrendered with the Museum Premises as a part thereof without molestation , disturbance or injury at the end of the term , whether by lapse of time or otherwise. The glass double doors on the East side of the building , entitled Th e Keepers Mandala , installed by MOA in 2008 are considered a work of fine art, are included in the MOA collection schedule for this purpose , and are not considered alterations , additions , improvements , or fixtures of a permanent nature. (b) All improvements and remodeling of the Museum Premises shall be accomplished in accordance with the drawings and specifications prepared by MOA's architect. CITY's (COE/MO A Premises Lease (2020)) Page 3 of 22 architect will be permitted to review MOA's space plan and to make recommendations , if any , concerning it prior to its approval by CITY. The CITY shall have final approval over the improvement and remodeling of the Museum Premises . (c) Should CITY or EEF receive notice of, or should there be recordation in the real estate records of Arapahoe County , Colorado of, any materialman's or mechanic's lien on the CITY's or EEF's prope1ty as the result of any work performed , or materials provided , for or on behalf of, MOA, MOA shall , upon receipt of written notice from CITY or EEF , immediately have such lien released. If, for any reason , MOA is unable to obtain a release of said lien within thirty days of CITY or EEF's notice , MOA shall provide CITY or EEF with a cash payment in the amount of the stated amount of the lien. CITY or EEF shall place such cash deposit in an interest:-bearing account of CITY or EEF's choice at the bank where CITY or EEF conducts its banking business. (d) If the lien is not thereafter released no later than six months following the date of CITY or EEF's notice , CITY or EEF shall be pennitted to use the cash deposit and all earnings thereon to obtain a release of the lien. Should there be any balance remaining in the cash account after release of the lien, the balance shall be refunded to MOA. Should MOA obtain a release of the lien after making the cash deposit, the entire balance of the cash deposit shall be paid to MOA upon receipt by CITY or EEF of satisfactory proof that CITY or EEF 1 s title is no longer encumbered by the lien. Should CITY or EEF be named in any suit , whether or not it is a suit to foreclose upon a lien , resulting from any work performed , or materials provided , for or on behalf of, MOA, MOA agrees to indenmify and save CITY and EEF harmless from and against any such suit or claim , including costs. (e) Any improvements constructed by MOA to the Museum premises over the term of this Agreement shall be constructed according to drawings and specifications approved by the CITY for offices , classrooms , art workrooms and museum display areas . ARTICLE IV USE OF PREMISES 4.1 Use of Premises and Business Hours. During the entire term of this Agreement, the Museum Premises shall be used solely for the purpose of the conduct of MOA's exempt purposes , its business offices , classes , and other lawful activities associated with such business. The business hours for MOA shall conform to the standard building hours of operation. The CITY agrees to accommodate additional hours outside standard building hours on a reasonable basis. MOA shall be required to provide the CITY with notice of the need for additional hours at least fourteen (14) days in advance. For all purposes under this Agreement standard building hours means 7:00 a .m. to 9:00 p.m., Monday through Friday, and 7 :00 a.m . to 6:00 p.m. Saturday, other than holidays. 42 Compliance with Laws and Regulations. MOA shall , at all times maintain and conduct its business , insofar as the same relates to MOA's use and occupancy of the Museum Premises , in a lawful manner, and in strict compliance at MOA 's sole expense with all governmental laws, rules , regulations and orders and provisions of insurance underwriters applicable to the business of MOA conducted in and upon the Museum Premises. 43 Affirmative Covenants of MOA Relative to Usage of Museum Premises. MOA agrees to the following: (COE/MOA Premises Lease (2020)) Page 4 of22 (a) MOA shall warehouse , store or stock in the Museum Premises only MOA's necessary equipment and supplies. (b) MOA shall not permit waste of the Museum Premises. (c) MOA shall keep said premises clean and in the sanitary condition as required by the ordinances , and the health, sanitary , and police regulations, of CITY. (d) MOA shall not permit nor allow said premises, or the walls or floors thereof to be endangered by overloading. ARTICLE V MAINTENANCE, REPAIRS AND SERVICES 5.1 By MOA . MOA agrees that during the term of this Agreement , it will be obligated to make all repairs , maintenance and replacements to all fixtures , appliances and facilities furnished byMOA. 5.2 By Englewood. CITY agrees that , without extra charge , during the term of this Agreement, and in accordance with standards from time to time prevailing for like office buildings in Englewood , Colorado , to furnish water, sewer, and such heated or cooled air to the Museum Premises during all of MOA's business hours as may be required for the comfortable use and occupancy of the Museum Premises; to provide building standard nightly janitor service for the Museum Premises during business days which , at a minimum, will include the daily emptying of waste receptacles , vacuuming of floors , spot cleaning of carpets as necessary , and dusting of all horizontal surfaces; to provide quaiier annual window washing and such wall cleaning as may in the judgment of CITY be reasonably required; to provide snow removal as needed ; and to cause electric current to be supplied for lighting in the leased premises and public halls , and it is understood that MOA shall use such electric current as shall be supplied by CITY for all equipment necessary to conduct MO A's business. The CITY shall replace light bulbs or tubes used in lighting the Museum Premises. CITY shall , during standard business hours , provide proper and adequate security to the Museum Premises. 5.3 Parking. CITY shall provide MOA with no fewer than forty (40) non-assigned and shared parking spaces in the parking area of City Center closest to access to the Museum Premises . 5.4 Surrender of Premises. At the expiration of this Agreement, MOA shall surrender the Museum Premises in the same condition as exists upon the completion of the MOA improvements , ordinary wear and tear excepted . ARTICLE VI FIXTURES, SIGNS, AND ALTERATIONS 6.1 Fixtures . All fixtures of a permanent nature installed by MOA shall be in good conditions and have a useful life of at least twenty years , unless otherwise approved by CITY. Upon the installation of any fixture of a permanent nature by MOA, such fixture shall become the property of CITY. CITY must approve in advance the installation of a permanent fixture and such approval shall not unreasonably withheld. 6.2 Signs. MOA shall not erect any antenna, loudspeaker, or any exterior or interior signs without first obtaining the written consent of the CITY, which consent shall not be (COE/MOA Premises Lease (2020)) Page 5 of 22 unreasonably withheld. MOA signage shall conform to the signage in the Civic Center Building. Further, all approved , illuminated signs must derive light from a concealed source (no exposed globes , tubing, etc .). The CITY shall provide adequate directional signage to and from MOA throughout City Center as well as street and building signage identifying MOA 's presence and location and identification of classes and events . 6.3 Alterations. Subsequent to completion of the improvements , MOA may, from time to time , during any term , at its own cost and expense , upon written consent of CITY, which consent shall not be unreasonably withheld, make any reasonable nonstructural alterations or changes in the interior of the Museum Premises in a good and workmanlike manner in compliance with all applicable requirements of law, it being understood that "nonstructural" shall include moving of stud partitions , minor plumbing and electrical work and modification and rearrangement of fixtures; provided that nothing in this Section.shall limit or modify MOA's rights under Section 5.2. CITY agrees to cooperate with MOA for the purpose of securing necessary permits for any changes , alterations or additions permitted under this section. For this purpose, nonstructural alterations or changes do not include alterations or changes being made in the Museum Premises for the purpose of presenting an art or performance exhibit of a duration of less than six months. In this latter event, MOA will not be obligated to obtain consent of CITY. MOA shall be required to obtain permits mandated by ordinance , if any , in order to make any such alterations or improvements. 6.4 MOA will not alter the exterior of the Museum Premises and shall have no right to make any change , alteration or addition to the Museum Premises which would impair the structural soundness or diminish or increase the size thereof, without the prior written consent of CITY. 6.5 All costs of any such work shall be paid promptly by MOA so as to prevent the assertion of any liens for labor or materials. MOA agrees that any improvements made by it ( except trade fixtures and unattached signs) shall immediately become the property of CITY. ARTICLE VII PUBLIC LIABILITY 7.1 MOA's Liability Insurance. MOA shall , during the entire term hereof, keep in full force and effect a policy of public liability and property damage insurance with respect to the Museum Premises , and the business operated by MOA in the Museum Premises , in which the limits of public liability shall not be less than One Million and Noll 00 Dollars ($1 ,000 ,000.00) per person and One Million and Noll 00 Dollars ($1 ,000 ,000.00) per incident and in which the total damage liability shall not be less than Two Million and Noll 00 Dollars ($2 ,000,000.00). The policy shall name CITY as an additional named insured , and shall contain a clause that the insurer will not cancel or change the insurance without first giving the CITY thirty (30) days prior written notice. The insurance shall be an insurance company approved to do business in the State of Colorado and a copy of the policy or a Ce1tificate oflnsurance shall be delivered to Englewood. Nothing herein shall be construed as a waiver by the City of its immunities as set forth within the Colorado Goverrunental Immunities Act. 7.2 Worker's Compensation. To the extent required by law, MOA shall procure and maintain worker 's compensation coverage for its employees. (COE/MOA Premises Lease (2020)) Page 6 of 22 ARTICLE VIII DAMAGE BY FIRE OR CASUALTY 8.1 Insurance Coverage by MOA. MOA shall keep the Museum Premises insured against loss or damage by fire , with the usual extended coverage endorsements , in amounts not less than the full insurable value of the improvements thereof. 8.2 Additional Coverage by MOA. MOA agrees that it shall keep its fixtures , merchandise and equipment insured against loss or damage by fire with the usual extended coverage endorsements. It is understood and agreed that MOA assumes all risk of damage to its own property arising from any cause whatsoever , including, without limitation , loss by theft or otherwise. 8.3 Protection from Subrogation. Anything in this Agreement to the contrary notwithstanding, neither CITY , EEF nor MOA shall be liable to the other for any business interruption or any loss or damage to property or injury to or death of persons occurring on the Museum Premises or the adjoining properties , sidewalks , streets or alleys, or in any maimer growing out of or c01mected with MO A's use and occupation of the Museum Premises, or the condition thereof, or of sidewalks , streets or alleys adjoining caused by negligence or other fault of CITY, EEF or MOA or of their respective agents, employees, licensees , assignees , guests or invitees , to the extent that such business interruption or loss or damage to the property or injury to or death of persons is covered by or indemnified by proceeds received from insurance carried by the other pai1y (regardless of whether such insurance is payable to or protects CITY, EEF or MOA or two or more of them) or for which such party is otherwise reimbursed; and licensees and assignees , for any such loss or damage to property or injury to or death of persons to the extent the same is covered or indemnified by proceeds received from any such insurance, or for which reimbursement is otherwise received. Nothing in this Section 8.3 contained shall be construed to impose any other or greater liability upon CITY, EEF or MOA than would have existed in the absence of this Section 8.3. 8.4 Notice. MOA shall give inm1ediate written notice to CITY of any damage caused to the Museum Premises by fire or other casualty. 8.5 Partial Damage. In case during the term hereof the Museum Premises shall be partially damaged (as distinguished from "substantially damaged ," as that term is hereinafter defined) by fire or other casualty , MOA shall forthwith proceed to repair such damage and restore the Museum Premises , (subject, however, to zoning laws and building codes then in existence) to substantially the same condition as before the time of such damage. MOA agrees that , promptly after completion of such work, it will proceed with reasonable diligence and at its sole cost and expense to restore its fixtures and equipment for reopening. In making such repairs of partial damage MOA shall be permitted to obtain the proceeds , if any , of the fire insurance procured by MOA which proceeds are paid as a result of such fire damage, whether paid directly to CITY or the company or the agency doing the repair work. MOA shall be responsible for payment of all repair work for such pat1ial damage which is not covered by such fire insurance. 8.6 Substantial Damage. In case during the term hereof the Museum Premises shall be substantially damaged or destroyed by fire or other casualty , the risk of which is covered by insurance, MOA shall have the option exercisable in writing within forty-five (45) days to terminate this Agreement and deliver to CITY all insurance proceeds ( other than proceeds in respect of inventory, fixtures and equipment), if any , or to retain this Agreement in full force and effect in which event MOA shall , proceeding with all reasonable dispatch , repair or rebuild the (COE/MOA Premises Lease (2020)) Page 7 of 22 Museum Premises , to substantially their condition at the time of such damage or destruction (subject, however, to zoning and building codes then in existence). For this purpose the term "inventory" includes, among other things, MOA's artwork. 8.7 No Abatement of Operation. MOA agrees that during any period of reconstruction or repair of the MuseLm1 Premises it will continue the operation of its business within the Museum Premises to the extent practicable. 8.8 Definition of Substantial Damage. The terms "substantially damaged" and "substantial damage ," as used in this Article , shall have reference to damage of such a character as cannot reasonably be expected to be repaired or the Museum Premises restored within one hundred and thirty-five (135) days from the time that such repair or restoration work would be commenced, as certified by a registered architect selected by MOA and accepted by CITY. ARTICLE IX HAZARDOUS MATERIALS 9.1 MOA's Representation. MOA agrees that whenever it , or any of its agents , employees , contractors , licensees or invitees , causes or permits any Hazardous Material to be brought upon , kept, used or disposed of in , about or from the Museum Premises by MOA , the same will be kept, used and disposed of in a manner that complies with all laws regulating any such Hazardous Material and their possession, storage , use and disposal. 9.2 Definition of Hazardous Material. "Hazardous Material ", as used in this Agreement, shall be any petroleum based products , paints and solvents , polychlorinated biphenyl , lead , acids , ammonium compounds and other chemical products (excluding conunercially used cleaning materials in ordinary quantities), and any substance or material if defined or designated as a hazardous or toxic substance , or other similar te1m , by any federal , state or local law, statute , regulation , or ordinance presently in effect or that may be promulgated in the future , as such statutes , regulations and ordinances may be amended from time to time. 9.3 CITY's Responsibility for Removal. Notwithstanding the foregoing , if any Hazardous Material was used in connection with the original construction of the Museum Premises and the removal of such Hazardous Material from the Museum Premises becomes necessary during the term of this Agreement , Englewood shall be responsible for the removal of the same , except if MOA, or any of its agents , employees , contractors , licensees , or invitees , by their actions (as opposed to ordinary wear and tear) has somehow affected the original construction materials in some way so that the same have to be removed , in which event MOA shall be responsible for such removal. ARTICLE X ASSIGNMENT AND SUBLETTING 10.1 Consent Required. MOA may not assign this Agreement and/or sublet the Museum Premises or any part thereof, without in each instance obtaining the written permission of CITY . The consent by Englewood to any assignment or subletting shall not constitute a waiver of the necessity for such consent to any subsequent assignment or subletting . This prohibition against assigning or subletting shall be construed to include a prohibition against any assignn1ent or subletting by operation of law. If this Agreement is assigned , or if the Museum Premises or any part thereof is sublet or occupied by anybody other than MOA, CITY may collect rent from the (COE/MOA Premises Lease (2020)) Page 8 of 22 assignee, sublessee or occupant, and apply the net amount collected to the rent herein reserved , and such assignment, subletting , occupancy or collection shall be deemed a release of MO A from the further performance by MOA of covenants on the part of MOA herein contained with respect to the assigned or sublet premises. Notwithstanding the right to assign or sublet herein granted , the CITY shall be permitted to refuse to consent to assignment or sublet unless the CITY's obligation under Article XVI is eliminated upon assignment or sublet. ARTICLE XI MOA'SDEFAULT 11.1 Events of Default. The following events shall be deemed to be events of default by MOA under this Agreement. (a) MOA shall have failed to pay any installment of rent or any other charge provided herein, or any portion thereof when the same shall be due and payable , and the same shall remain unpaid for a period often (10) days after written notice from the CITY; or (b) MOA shall have failed to comply with any other provisions of this Agreement and shall not cure such failure within thirty (30) days after CITY, by written notice , has informed MOA of such noncompliance; or (c) MOA shall file in any court a petition in bankruptcy or insolvency or for reorganization within the meaning of the United States Bankruptcy Code, as amended , (or for reorganization or arrangement under any future Bankruptcy Act for the same or similar relief) or for the appointment of a receiver or trustee of all or a portion of MOA's property ; or ( d) An involuntary petition of the kind referred to in paragraph ( c) of this Section 11.1 shall be filed against MOA and such petition shall not be vacated or withdrawn within ninety (90) days after the date of filing thereof; or (e) MOA shall make an assignment for the benefit of creditors; or (f) MOA shall be adjudicated a bankrupt; or (g) MOA shall for reasons other than those specifically permitted in this Agreement, cease to conduct its business operations required by Article IV hereof in the Museum Premises or shall vacate or abandon the Museum Premises and leave same vacated or abandoned for a period of thirty (30) days. Upon the occurrence of an event of default, CITY' s sole remedy shall be to cancel and terminate this Agreement. 11.2 Costs, Expenses and Attorneys' Fees. In the event of any suit instituted by either party to enforce the covenants and agreements contained in this Agreement, the prevailing party in any such litigation shall be entitled to recover all costs , expenses , and reasonable attorneys' fees that may be inctmed or paid as a result of such litigation. In the event of a compromise, neither party shall recover costs , expenses and attorneys' fees , but such costs, expenses and attorneys' fees may be considered by the parties in reaching a compromise. (COE/MOA Premises Lease (2020)) Page 9 of22 ARTICLE XII SUBORDINATION OR SUPERIORITY OF SUBLEASE 12.1 Lease Subordinate or Superior to Deed of Trust. It is agreed that the rights and interest of MOA under this Agreement shall be subject and subordinate to any mortgage or deeds of trust placed upon the Civic Center Building, to any and all advances to be made thereunder, to the interest thereon, and to all renewals , modifications , replacements and extension thereof, provided the mortgagee or trustee named in said mortgages or deeds of trust must elect by written notice delivered to MOA to subject and subordinate the rights and interest of the MOA under this Agreement to the lien of its mortgagee or deed of trust and shall agree to recognize this Agreement of MOA in the event of foreclosure if MOA is not in default; however, any mortgagee or trustee may elect to give the rights and interest of the MOA under this Agreement priority over the lien of its mortgage or deed of trust. In the event of either such election, and upon notification by such mortgagee or trustee to MOA to that effect, the rights and interest of the MOA under this Agreement shall be deemed to be subordinate to , or have priority over, as the case may be, the lien of said mortgage or deed of trust , whether this Agreement is dated prior to or subsequent to the date of said mortgage or deed of trust. MOA shall execute and deliver whatever instruments may be required for such purposes , and in the event MOA fails so to do within ten (10) days after demand in writing , MOA does hereby make , constitute and irrevocably appoint CITY as its attorney in fact and in its name , place and stead so to do. ARTICLE XIII MISCELLANEOUS PROVISIONS 13.1 Holding Over. In the event that MOA shall continue to occupy the Museum Premises after the expiration of this Agreement, said tenancy shall be construed to be a tenancy from month-to-month , unless a letter is delivered to MOA by City, at the address set f01ih herein , demanding immediate removal from the premises. All of the terms and conditions herein contained shall apply during a month-to-month tenancy. 13.2 Waiver. Failure on the part of the CITY to complain or notify of any action or non- action on the part of MOA , no matter how long the same may continue , shall never be deemed to be a waiver by Englewood of any of its rights hereunder. Further, it is covenanted and agreed that no waiver at any time of any of the provisions hereof by Englewood shall be construed as a waiver at any subsequent time of the same provisions unless Englewood so agrees at the time of the waiver. 13.3 Covenant of Quiet Enjoyment. MOA , subject to the terms and provisions of this Agreement on payment of the rent and observing, keeping and performing all of the terms and provisions of this Agreement on its part to be observed , kept and performed , shall lawfully peaceably and quietly have, hold, occupy and enjoy the Museum Premises during the term hereof without hindrance or ejection by any persons lawfully claiming under Englewood. 13.4 Status Reports. Recognizing that both parties may find it necessary to establish to third parties, such as accountants , banks , motigagees , or the like , the then current status of performance hereunder, either party , on the written request of the other made from time to time , will promptly furnish a written statement on the status of any matter pertaining to this Agreement. 13.5 Notice to Mortgagee. After receiving written notice from any person , firm , or other entity , that it holds a mortgage (which term shall include a deed of trust) which includes as part of (COE/MOA Premises Lease (2020)) Page 10 of 22 the mortgaged premises the Museum Premises , MOA shall , so long as such mortgage is outstanding be required to give to such holder the same notice as is required to be given to CITY under the terms of this Agreement, but such notice may be given by MOA to CITY and such holder concurrently. It is further agreed that such holder shall have the same opportunity to cure any default , and the same time within which to effect such curing , as is available to CITY ; and if necessary to cure such a default , such holder shall have all rights of CITY. 13.6 Invalidation of Particular Provisions. If any term or provision of this Agreement , or the application thereof to any person or circumstance shall , to any extent , be invalid or unenforceable , the remainder of this Agreement, or the application of such term or provision to person or circumstances other than those as to which it is held invalid or unenforceable , shall not be affected thereby, and each term and provision of this Agreement shall be valid and be enforced to the fullest extent permitted by law. 13. 7 Provisions Binding, Etc. Except as herein otherwise expressly provided , the terms hereof shall be binding upon and shall inure to the benefit of the successors and assigns , respectively, of Englewood and MOA. Each term and each provision of this Agreement to be performed by Englewood or MOA shall be construed to be both a covenant and a condition. The reference contained to successors and assigns of MOA is not intended to constitute a consent to assignment by MOA , but has reference only to those instances in which Englewood may later give written consent to a particular assignment as permitted by the provisions of Section 10.1 hereof. 13.8 Governing Law. This Agreement shall be governed exclusively by the provisions hereof and by laws of the State of Colorado and its political subdivisions as the same may from time to time exist. 13.9 Notices. Any notice which may be required to be given under this Agreement shall be delivered in person or sent by registered or certified mail, postage prepaid and shall be addressed to Englewood at 1000 Englewood Parkway, Englewood , Colorado 80110 , Attention: City Manager and to MOA at the address of the Museum Premises , or to either party at such other address as shall be designated by written notice to the other party. Whenever under this Agreement a provision is made for notice of any kind , it shall be deemed sufficient notice and service thereof if such notice to MOA is in writing addressed to MOA at the Museum Premises and deposited in the mail with postage prepaid, and if such notice to Englewood is in writing addressed to the location for payment of rent as provided in Article II and deposited in the mail with postage prepaid. 13.10 Section Headings. The headings , section numbers and aiiicle numbers appearing in this Agreement are not intended in any manner to define , limit or describe the scope of any such section or article and are solely inse11ed as a matter of convenience . 13.11 Entire Agreement. This Agreement and any exhibits or riders made a part hereof constitute the entire agreement between the parties relating to the subject matter hereof. It is understood that there are no oral agreements between the parties hereto affecting this Agreement , and this Agreement supersedes and cancels any and all previous negotiations, arrangements , brochures , agreements or understandings , if any , between the parties hereto or displayed by Englewood to MOA with respect to the subject matter hereof, and none shall be used to interpret or construe this Agreement. It is further agreed by and between the parties hereto that there shall be no modification or amendment of this Agreement except as may be executed in writing between the parties hereto. 13.12 Access to Premises. CITY shall have the right to enter upon the Museum Premises (COE/MOA Premises Lease (2020)) Page 11 of22 at all reasonable hours for the purpose of inspecting the same and during any emergency. If Englewood deems any repairs necessary , Englewood may make at its expense or cause MOA to make such repairs , as may be required under this Agreement , at MOA's expense. 13.13 Payment After Termination or Notice. No payment of money by MOA to Englewood after the termination of this Agreement in any manner, or after the giving of any notice to MOA, shall reinstate , continue or extend the term of this Agreement or affect any notice given to MOA prior to the payment of such money , it being agreed that after the service of notice or the commencement of a suit or after final judgment granting Englewood possession of said premises, Englewood may receive and collect any sums of rent due , or any other sums of money due under the terms of this Agreement, and the payment of such sums of money whether as rent or otherwise , shall not waive said notice , or in any manner affect any pending suit or any judgment theretofore obtained. 13.14 Access for Reletting. Englewood may at any time within ninety (90) days before the expiration of this Agreement, enter the Museum Premises at all reasonable hours for purposes of offering the same for rent , and may place and keep on the window and doors of said premises signs advertising the premises for rent. 13.15 Joint and Several Liability. All the terms , covenants and conditions contained in this Agreement to be performed by either party, if such party shall consist of more than one person or organization , shall be deemed to be joint and several , and all rights and remedies of the parties shall be cumulative and nonexclusive of any other remedy at law or in equity. 13.16 Brokers. MOA warrants that it has had no dealings with any real estate broker or agents in connection with the negotiation of this Agreement, and that it knows of no other real estate broker or agent who is or might be entitled to a commission in connection with this Agreement. 13.17 Corporate Authority . MOA is a Colorado not-for-profit corporation, and each individual executing this Agreement on behalf of MOA represents and warrants that he is duly authorized to duly execute and deliver this Agreement on behalf ofMOA, and that this Agreement is binding upon MOA in accordance with its terms. 13.18 Copies. This Agreement may be executed in any number of copies all of which shall be deemed an original and all of them shall constitute one and the same agreement; provided , that , it shall only be necessary to produce one copy of such Agreement for proof. 13.19 Approval of City Council. CITY represents and warrants that all of the terms of this Agreement have been reviewed and approved by its City Council , that an appropriate Resolution has been adopted by the City Council authorizing CITY to enter into this Agreement , that the person executing this Agreement on behalf of CITY has full authority to do so , and that the actions of the City Council are such that this Agreement shall remain in full force and effect in accordance with its terms throughout the term described in Section 1.2 . CITY further represents and warrants that this Agreement is legally binding upon CITY; however, any provision of this Agreement or its exhibits which impose upon the CITY , directly or indirectly , any financial obligation whatsoever to be performed or which may be performed in any fiscal year subsequent to the year of execution of this Agreement, is expressly made contingent upon and subject to funds for such financial obligation be appropriated , budgeted and otherwise made available. A copy of the Resolution of the City Council is attached hereto and incorporated herein as Exhibit D. 13.20 Approval of Board of Directors of EEF. EEF represents and warrants that all of (COE/MOA Premises Lease (2020)) Page 12 of 22 the terms of this Agreement have been reviewed and approved by the Board of Directors of EEF , that an appropriate resolution has been adopted by the Board of Directors approving and recommending this Agreement to the City Council , and that the person executing this Agreement on behalf of EEF has full authority to do so. EEF represents that it is a legally constituted entity with capacity to oversee this Agreement following its approval by the City Council. A copy of the Resolution of the Board of Directors of EEF is attached hereto and incorporated herein as Exhibit C. ARTICLE XIV MOA'S RENEW AL OPTION 14.1 Option to Renew. As additional consideration for the covenants of MOA hereunder, CITY hereby grants unto MOA an option (the "Option") to extend the term of the Agreement for three (3) additional terms of three (3) years (an "Option Term") each . Each Option shall apply to all Museum Premises at the time the Option Term would commence , and shall be on the following terms and conditions: (a) Written notice of MOA's election to exercise an Option shall be given to CITY no later than six (6) months prior to the expiration of the term ("MOA's Notice"). If MOA timely exercises an Option , the Agreement shall be deemed extended with all of its terms. (b) Unless CITY is timely notified by MOA in accordance with paragraph (a) above , it shall be conclusively deemed that MOA does not desire to exercise the Option , and the Agreement shall expire in accordance with its terms , at the end of the term. (c) If MOA is in default of this Agreement at the time of notice hereunder , the option may be exercised only with the written consent of the CITY. (d) The Options granted hereunder shall be upon all of the terms and conditions contained herein. ( e) After exercise of all of the Options above described , there shall be no further rights on the part of MOA to extend the term of the Agreement. ARTICLE XV ARTWORK DISPLAY 15.1 Display of Artwork. The works of art , each of which is owned by MOA, shall be displayed throughout the City Center pursuant to the Artwork Installation Plan described in Section 15.4 below. Works ofart subsequently acquired by MOA and works of art prepared through MO A's art education programs may be displayed in such areas of City Center from time to time. MOA alone shall have the right to display works of art and exhibits in City Center in the locations described as MOA artwork locations in the Artwork Installation Plan , and all decisions with respect to the nature and propriety of any particular piece of art or any exhibit by MOA of any artwork whatsoever is expressly granted , reserved to and held alone by MOA. 15.2 Movement of Artwork. With the consent ofEEF, MOA shall be permitted to move any permanent work of art from one designated point to any other designated point within the City Center during the term of the Agreement. The cost of moving any such art within City Center shall (COE/MOA Premises Lease (2020)) Page 13 of 22 be paid by MOA , unless the request to move the art was made by the CITY or EEF in which event the CITY or EEF shall pay the cost. 15.3 Sale of Artwork. MOA, in its sole and absolute discretion , shall be permitted to sell any work of art which it owns and which is on display in the City Center other than those designated as "Permanent Installations" on Exhibit B . Upon the removal of any such sold item , MOA shall be responsible to pay for all costs of removal and any cost of restoration of the space from which such artwork was removed. 15.4 Responsibility for Installed Artwork. MOA shall be responsible for , and pay the expense of, maintenance , repair, replacement, insurance and extraordinary security for the artwork installed at any time in City Center. Englewood shall be responsible for utilities , ground maintenance and standard security for the artwork installed at any time in City Center. ARTICLE XVI CITY SUPPORT OF MOA 16.1 Annual Contribution by CITY. The CITY will pay to MOA the sum of $48 ,000 (Forty-eight thousand dollars) within 30 days of the date that this Agreement takes effect. The City will pay to MOA $24,000 (Twenty-four thousand dollars) within 30 days one year subsequent to the date that this Agreement takes effect. No fm1her payment from the City to MOA will be made during the te1111 of this Agreement. The grant shall be utilized , in MOA's discretion , solely for the following purposes , set forth hereafter in particular order of priority: (a) Support for MOA's education programs and facilities. (b) Assistance with special events provided within the CITY by MOA. (c) Public Art Displays. (d) Ongoing maintenance of artwork displayed in the City Center. 16.2 TABOR. The parties understand and acknowledge that this Agreement and the CITY is subject to Article X , §20 of the Colorado Constitution ("TABOR"). The parties do not intend to violate the terms and requirements of TABOR by the execution of this Agreement. It is understood and agreed that this Agreement does not create a multi-fiscal year direct or indirect debt or obligation within the meaning of TABOR and, notwithstanding anything in this Agreement to the contrary , all payment obligations of the City are expressly dependent and conditioned upon the continuing availability of funds beyond the term of the City's current fiscal period ending upon the next succeeding December 31. Financial obligations of the City payable after the current fiscal year are contingent upon funds for that purpose being appropriated , budgeted , and otherwise made available in accordance with the rules, regulations , and resolutions of the City and applicable law. 16.3 Failure of CITY to Make Annual Contribution. Should the CITY fail to make any annual contribution as provided for in Section 16.1 without first having terminated this Agreement, MOA shall have the following remedies: (a) Declare this Agreement terminated , AND Vacate the Museum Premises , OR (b) Elect to keep this Agreement in effect by remaining a subtenant pursuant to the terms hereof without payment of the amounts set forth in Section 16.1 and , notwithstanding any provision to the contrary, have the right to remove any or all works of art without the consent of CITY. (COE/MOA Premises Lease (2020)) Page 14 of 22 ARTICLE XVII MOA OBLIGATIONS, PERFORMANCE, AND REPRESENTATIONS 17.1 MOA Operations. MOA will continue to operate , maintain and enhance a world class museum and art education program at City Center. MOA will develop programming as described in Article II that may include, but not be limited to , arts education-based exhibitions and special events such as the nationwide Design and Build Competition; education-based gallery exhibitions and special programs; concerts , workshops , and festivals in collaboration with Englewood Arts, and other Colorado arts organizations; and temporary and permanent art exhibitions and installations of approximately $1 ,000 ,000 in value . Notwithstanding the foregoing description of operations, should any of these operations terminate at no fault of MOA, there shall be no breach of this operations requirement, but, MOA shall thereafter use all reasonable efforts to replace the terminated operation with a similar one. MOA shall continue to market all of its programs and activities at City Center. MOA will develop a resident arts education discount program for all residents of the City of Englewood , Colorado and shall continue to participate as a community partner with the Englewood Cultural Arts Commission. 17.2 MOA Representations. MOA represent to the City as follows: (a) MOA has been recognized for its efforts in both "Arts " and "Education". (b) The Governor of Colorado and the Colorado Council on the Arts honored MOA in 1993 with the Governor 's Award.for Excellence in the Arts , Colorado 's highest arts honor. (c) In 1993 , MOA was presented with the Museum Educator of the Year award from the Colorado Arts Association and has also been praised for art and education by all major art and news publications in Colorado , including Westword 's "Best o,f Denver: Best Art Classes for Kids " 199 5. (d) MOA produces special programming tlu·oughout the calendar year. (e) MOA maintains an annual budget of $1 ,000,000 annually, which it shall maintain so long as its gross income from all sources equals or exceeds its gross income for 2018 and should its gross income fall below the amount for 2018 , the minimum budget shall reduce only in proportion to the decrease in gross income. (f) MOA shall spend at least $100,000 per year for its programming as described in Section 17.1 , and in collaboration with Englewood Arts and other resident Colorado arts organizations , as well as CITY-sponsored special programs and events , and temporary and permanent art installations. No later than November 30 th of each year , MOA shall provide a report to the CITY describing the programs provided and costs incurred during the preceding year of this Agreement with respect to all programs provided at City Center. ARTICLE XVIII SHARED USE OF CULTURAL SPACE 18.1 Cooperation in Program Planning. The CITY and MOA agree to cooperate in planning cultural programs and events for the Civic Center building and City Center Englewood. (COE/MOA Premises Lease (2020)) Page 15 of 22 ARTICLE XIX TERMINATION 19.1 Termination. Both the CITY and MOA may terminate this Agreement with written notice given no less than six (6) months prior to the requested date of termination for any reason , including a failure on the part of the CITY to appropriate funds for the programming as set forth in Article XVI of this Agreement. All tenns and conditions shall remain in effect during the termination period until MOA officially vacates the Museum Premises. MOA may choose to leave art work in place , the CITY shall not be responsible for any maintenance or upkeep to any artwork left in place by MOA , whether located inside City Center or in the outdoor public spaces. In the event that the CITY requested that art work be removed by MOA, all expenses for moving the art work shall be borne by MOA. Further, the CITY is under no obligation to pay for any expenses incurred by MOA associated with the closure and vacation of the Museum Premises by MOA. MOA shall leave the Museum Premises in good , clean and safe condition, ordinary wear and tear excepted. [remainder of page intentionally left blank] (COE/MOA Premises Lease (2020)) Page 16 of 22 TN WITNESS WHEREOF, the parties hereto have affixed their signatures the day and year first above written. CITY OF ENGLEWOOD ATTEST: Linda Olson , May;«· ENGLEWOOD ENVIRONMENTAL FOUNDATION , TNC. STATE OF COLORADO ) ) ss. COUNTY OF ARAPAHOE ) The foregoing Governmental Agreement and Sublease was subscribed , acknowledged , and affirmed or swori\o before me this § day of ffi o, ~ , 2020 , by \\\CtC, v-.. 1 t\ acA re. 0-,, , as p f'e "J-; ½ ·\--, of Englewood E1~vTi;mnental Foundation, Inc. WITNESS my hand and official seal. (SEAL) JACQ UEL1NE McKI N NO TA R 'I ' ·ri uc STAT E O F CL , \DO NOTARY ID 20 16 'lu,.,j8 67 MY COM MISSI ON EXPIR ES JULY B, 2020 Address ?~z )1€U)O / j l u 7 ~ --r I 9 .__, o' ,,,. My Commission Expires: __ ~.....,J~..,_("--',:l _~--+--v---r-~L~~/_u __ _j J (COE/MOA Premises Lease (2020)) Page 17 of22 TIIE MUSE.UM OF OUTDOOR ARTS ST ATE OF COLORADO ) ) ss. COUNTY OF ARAPAHOE ) The foregoing Governmental A reement and Sublease was subscribed, acknowledged, and affinned or sworn to before me this S day of ~~ 1..~ 1 2020, by C.fbtlQ ~a... Mc;~'il L ~•"'ti.<J ,-, as 'us-":;;:,: [x ~(,....,__~1.J <i '3-,~oc\Q(ofThe Museum o utdoor Arts. WJTNESS my hand and official seal. T OTHY JAMES A C NOTARY PUBLIC STATE OF COLORADO (SEAittbt ARY ID 20074009417 MY COMMISSION EXPIRES FEI. 11, 20H Address , , / /-:,, ?,'I ((A ~ I •• I' i ), ', !, J ( L--' a ,I _u I I My Commission Expires:_.;:; ____________ _ (COE/MOA Premises Lease (2020)) Page 18 of22 EXHIBIT A TO GOVERNMENTAL AGREEMENT AND SUBLEASE between THE CITY OF ENGLEWOOD, COLORADO ENGLEWOOD ENVIRONMENTAL FOUNDATION , INC. AND THE MUSEUM OF OUTDOOR ARTS ************************************************************************* Exempt Purposes of The Museum of Outdoor Arts MOA'S 501(3)(c) STATUS The Corporation is formed exclusively for charitable and educational purposes within the meaning of Section 50 I (c)(3) of the Internal Revenue Code of 1954 as amended (the "Code"0 , the principal purpose of which shall include , but not be limited to , the stimulation , promotion and development of the interest of the general public in every manner of ait forms throu g h the organization and operation of outdoor and indoor museums, the holding and sponsorship of music conceits , ait exhibitions and theatrical and dance performances, all for cultural and educational purposes and to perform ev e ry act or acts necessary for , incidental to or connected with the fu1therance of its charitable and educational purposes and generally do anything permitted of an organization exempt from Federal income taxation under Section 50l(c)(3) of the code. (COE/MOA Premises Lease (2020)) Page 19 of 22