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HomeMy WebLinkAbout2002 Ordinance No. 007• • • ORDINANCE NO .!]__ SERIES OF 2002 BY AUTHORITY COUNCIL BILL NO. 5 INTRODUCED BY COUNCIL MEMBER GARRETT AN ORDINANCE AUTHORIZING THE LEASE OF BUILDING SPACE LOCATED AT 3629 SOUTH FOX STREET BY THE CITY OF ENGLEWOOD . WHEREAS, the City Council of the City of Englewood has discussed the issue o additional office nnd storage space: and WHEREAS, the s pace at 3629 South Fox provides ovailaLle office space to re-locate the Profession al Slondards Bureau yet ma intain their operation; and WHEREAS, recent legal requireme nts have significantly incr eased the amount of evidence required to be s tore d for extreme ly long periods of time ; an d WHEREAS , with the passage of thi s Ordinance the Englewood De partment of Safety Services will provide much ne eded storage space for property and evidence; a nd WHEREAS, this location is within wallcing distance of the main police/fire complex ; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ENGLEWOOD , COLORADO, AS FOLLOWS: ~-The City Council of the City of Englewood, Colorodu hereby authorizes the Lease Agreement for building space located at 3629 South Fox, Englewood , Colorado, a copy of which is ma rked as "Exhibit A" a nd attached h ereto . ~-The Mayor is here by authori ze d to s ign said Lease on behalf of the City of Englewood . Introduced, read in fu ll, and passed on first reading on the 22nd day of January, 20U2 . Published as a Bill for a n Ordinance on the 25th day of January, 2002 . Read by title and passed on final reading on the 4'' day of February, 2002 . Publi s hed by title as Ordinance No. L Series of 2002, on the 8t n day of Fe bruary, 2002 . -t - I , Loucrishia A. Ellis, City Clerk of the City of Englewood, Co lorado, hereby certify that the above and forei;oing is a true copl'., of the Ordinance passed on final reading and published by title as Ordinance No . :.../-, Series of 2002 -2- • • • • • LEASE 1. PARTIES : Th is Lease , dated for reference purposes only, January 1 2002 is made by and between Bret M. Terry (here in called "Lessor") and The City of Engfewood (h~rei n called "Lessee" or "C ity"). 2. PREMISES : Premise s are described as a commerciaVwarehouse type of building (the "Building ") containing approximately 2,212 rentable sr,uare feet of area at the real property legally described as l.2! 13-16 Block 15 Enafewood County of Arapaho~. State of Colorado and commonly known.il.3§2li Fox St. Un it B Englewood CO 801 10 . Said rea l property , Including the land and all improvements thereon , is called i he Premises". 3. TERM : The te,m of the Lease shall be for~ year(s) commencing on January 1 2001 and enrting on December 31 2002 unless sooner terminated pursuant to any provi~i on hereof. Notwithstand ing sa id commencement date, If for any reason Lessor cannot deliver possession of the Premises to Lessee on said date, Lessor shall not be subject to any liability therefore, and such failure shall not affect the val idtty of this Lease or the obllpatlons of Lessee hereunder or extend the te,m hereof, but in such case , Lessee shall not be obl iga ted to pay rent unti l possession of the Premises Is tendered to Lessee: provided howev er, that if Lessor shall not have de llv-.ra d possession of the Premises within sixty (60) days from s,;id commencement date, Lessee may, at Lessee's oplion , by notice in writing to Lessor within ten (10) •Jays thereafter, cancel th is Lease, In which e.er\ ~he parties sh all b~ discharged fro m all obligations hereunder. If '. .eesee occupies the Prem ises prior to sa id commenCf:ment date , such occupancy shall be subje ct <J all provisions hereof, such occupa i ,cy shall not advance the te,minati on date , and Lessee sha ii pay rent for such pe ri od at the initial monthly rates set fo(.~ below . 4. RENT: The minimum rent paid shall be $1 566 per month during the first year of Lease. The minimum rent paid duri n1, each subsequent year of the Lease term shall be increased by three (3) percent per year over the remai ning lease term and each year of any option term . Less ee shall pay Less or upon It ,, execution hereof the amount of S1,j§§ as gross rent for the period of January 1 2002 to January 31 20~2, The minimum rental for the full term is the sum of~-Rent for any period during the te ,m hereof which is for less than one month shall be a pro rata portion of the monthly installments. Rent shall be payable in lawful money of the United States to Lessor at the address stated here in or to su ch other persons or at such other places as Lessor may designate in wming. 5. SECURITY DEPOSIT: None required . e. USE: 6 .1 Use : The Premises shall be used and occupied as operating offices for v arious City of Englewood Agencies . Any ch anges in the character of the occc pancy shall be done on ly with the con sent of Landlord , with such consent not unreasonably withheld . 6 .2 Compliance with Law: Lessee shall , at Lessee's expense, comply promptly with all appl icablt ,latutes , ord inances, rules, regu lations. ord ers , restrictions of record , and requ irements in effect duri ng l he te,m or any part of the le,m hereof regulating ·,e use by Lessee of the Premises. Lessee shall not sue no r perm it the use of the Premises in any 11anner that will tend lo create waste or a nu isance . if there shall be more than one Lessee in the building containing the Premises , shall not tend to disturb such othe r Lessees. 6 .3 Condition of Premises : Lessee hereby accepts the Premi$es in the condtt ion exi st ing as of the date of th is Lease , subj ect to all applicable zoning , municipal. county ~nd state laws, ordinances and regu lati ons governing and regulating the use of the Premises , and accepts th is Lease subj ect thereto ah matters di sclosed thereby an d by .ny exhibit attached hereto. Lessee acknowledges that neither Lessor nor Lesso(s agent has made any representation or warranty as to the suttability of the Premis~s for the conduct of Lesse e's business . 7. MAINTENANCE AND ALTERATIONS : 7.1 Lessor's Obligations: Excepl for damage caused by any ne.glig,nl or intentional act or om ission of Le ssee , Lessee 's agent. employees , or invitees in which evenl Lessee shall repair the damage , Lessor , at Lessor's expense , shall keep in good ord er , condl!lon and rapalr lhe foundations, ex1erior walls and lhe ex1erior roof of the Premises . All other common area and services are to be performed by Lessee . Lessor shall not , however, be obligated 10 paint such ex1erlor, nor shall Lessor be required lo maintain windows , do or. or plate glass . Lessor shall have no obligation lo make repairs unde, this Paragraph 7 .1 until a reasonable lime after receipt of written notice of lhe need for such repairs . Lessee expressly wa iv es the benefits of any statute now or hereafter In effect which would ot~erwise afford Lessee the right to make repairs at Lessor's expense or to terminate this Lease becaus i, of Lessor's failure to keep the Premises in good order, condition and repair, In addition Lessor will insure that HVAC systems' major electrical systems and plumbing units ore operable at time Lessee occupies the Premises . Lessor shall be obligated only to make any repair or replacement to either the HVAC on heating sy st ems whose cost per needed repair or replacement exceed gQQ per incidence. 7.2 l.1111e's Obligations : (a) Except as otherwise prov ided in this Lease , Lessee . at Lessee's expense , shall keep in good order , condition and re~air the Prem ises and every part thereof includ ing all plumbing, heating, air condition , ven111at ing , electriC:JI and lighting facilities and equipment with tho Premises , fixtures , interior walls and interior surface of ex1erio,· walls , ceilings, windows , doors , and plate glass and skylights located within the premises , and ,11 sidewalks and parkways adjacent to the Premises . Lessee expressly waives the benefits of any statute now or hereafter in effect , which would otherwise afford Lessee the right to make repairs at Lessor's expense or terminate th is Lease because of Lessor's failure to keep the Premises in good order, condition , and repa ir. (b) If Lessee fails to perform Lessee's obligations under this Paragrap h 7 .2, Lessor may at Lessor's opt ion enter upon the Prem is es altar 10 days prior written notice to Lessee , and put the same In good order , condition and repair and the cost thereof together with interest thereon at to:~ rate of 15% per annum shall be due and payable , if not so paid , as additional rent to Lessor together with Lessee's nex1 monthly rental installment. (c ) On the last day of the term hereof, or on any sooner termination , Lessee shall surrender the Premises to Lessor in the same con~ition as received , broom clean , ordinary wear and tear excepted , Lessee shall repair any damage to the Prerr ises occas ioned by the removal of its trade fixtures . fum isning and equipment pursuant to Paragraph 7.3(d), which repair shall indude the patching and filling of holes and repair of structural damage . 7.3 Alterations and Additions: (a) Lessee shall not . without Lessor's prior written consent , make any alterations , improvements , addi llons , or Utility Installations in, or about the Premises , except for eusmetlc alterations not exceeding &QQQ in cost. As used in this Paragraph 7.3, the term "Utility Installation · ,hall mean bus duct ing , power panels , wiring, Ruorescent fix1ures, space heaters, conduits, air ca .. dltion a,,d plumbing . Lessor may require that Lessee remove any or a!I of said alteration, impro·,ements , additions , or Utility Installations at the expiration of !'·• t rm, and restore the Premises to their plior condition . Should Lessee make any alterations improvements , additions . or Lltllity lnsta l' n without the pri or approval of Lessor. Lessor ma~ require that Less ee remove any or all of such . (b) Any alteratio ns. improvements , addh,-ns or Utility Installations in, or about the Prem ises that Lessee shall desire to maie amt which requires the consent of the Lessor shall be presented to Lessor in written form, with pn ,rosed detailed plans . If Lessor shall give its consent the ccnsent shall be deemed conditioned upon Lessee acquiring a perm it to do so from appropriate governmental agencie s, the furnishing of a copy thereof to Lessor prior to the commencemen t of the work and the compliance by Lessee or all conditions of said p~rm ~· in a prompt and expeditious manner. ( c) Lessee shall p.3y , when due , all daim; for labor and materials furnished to or for Lessee at or for use in the Premise s. which daims are or ,nay be secured by any mechan ic's or materialmen 's lien against lhe P, •rr' es or any interest therein . L • ;see shall give Lessor not less than ten (10) days notice prio r to the coon, ... ncemen• · any woli< in th e Prem ises , and Lessor shall have the right to demand that Lessee post notices sta:lng that Landlord'5 Interest in the Premises and the Premises shall not be subject to any lie r. for labor or materials supplied to the Prem ises . If ar,y lit n is filed against any portion of the Premises , then Less ~• shall , at its scle expense , through counsel satls i'actory to Lessor , in Its reasonable discret ion , det. 1d ,tself and Lessor aga inst the same and shall pay and RW060r..t JcOl lro': J.IO IOOO 2 • • • • • • satisfy any adverse judgmenl lhat may be rendere,1 thereon before lhe enforcement thereof against lhe Lessor or lhe Prem ises . If Lessor shall require . L~Jsee shall furn ish to Lessor a surety bond satisfactory lo Lessor in an amount equal lo such contested lien claim . {d) Unless Lessor requires the ir removal , as set forth in Paragraph 7.3{a), all alterations, Improvements, additions and Ullllty Installations {whelher or not such Ulllity Installations constitute trade flXlures of Lessee). which may be made on lhe Premises, shall become the property of Lessor and remain upon and be surrendered with lhe Premises at l he expiration of the te1TT1 . Noi·,silhstandlng the provisions of this Paragraph 7 .3{d), Les•ee's machinery and equ ipment, other than that w~ich is affixed to the premises so that it cannot be removed without material damage to the Premises, shall re,:iain the property of Lessee and may be removed by Lessee and may be removed by Lessee subject to the provisions of Paragraph 7.2{c). 8. INSURANCE: 8.1 Liability Insurance: Lessee shall , at Lessee's expense , obt•in and keep in force during lhe lerrn of this Lease a policy of Combined Single Limit, Bodily Injury and Property Damage Insurance insuring Lessor and Lessee against any liability arising out of the ownership , use . occupancy, or maintenance of lhe Premises and all areas appurtenant lherelo. Such insurance shall be a combined single llmlt policy In an amount not less lhan $1,000 ,000. The policy shall contain cross liability endorsements and shall insure perfo1TT1ance by Lessee of lhe indemnity provision of this Paragraph 8. The limits of sa id insurance shall not , however. limlt the liability of Lessee hereunder. Said insurance shall also have a Lesso(s Protective Liabillty endorsement attached therelo . If Lessee shall fail to procure and maintain said insurance , Lessor may, but shall not be requ ired to , either procure and maintain the same at the expense of the Lessee . or te1TT1inate lhis Lease for Lessee's default. 8.2 Property Insurance: The City will be self-insunng lhe real property for fair replacement value and will name Bret M. Terry as additional insured . 8.3 Insurance Policies: Insurance required hereunder shall be in companies holding a "General Policyholders Rating" of B plus or better as set forth in lhe most current issue of 'Best lnsuranc. Guide". Wrth ln 10 days of the date of lhis Lease . Lessee shall deliver to Lessor copies of policies of liability insurance required under the Paragraph 8.1 or certificates evidencing the existence and ar mts of such insurance with loss payable clauses satisfactory lo Lessor. No such policy shall be cancelable , , subject to reduction of coverage or other modification except after ten (1 0) days prior written notice of Lessor. Lessee shall. within len 110) days prior to the expiration date of such policies , furnish Lessor with renewals or "binders" thereof, or ,ssor may order such insurance and charge the cost thereof to Lessee , wh ich amount shall be payable to Lessee upon demand , Lessee shall not do. or pe1TT1il to be done. anything which shall invalidale the insurance policies referred to in Paragraph 8.2. 8.4 Waiver of Subrogation: Lessee and Lessor each hereby waives any and all rights of recovery against the other. or against lhe officers. employees, agents and representatives of the other, for loss of or damage to such waiving party or its property or the property of others under its control , where such loss or damage is insured against under lhe insurance policy in force at the time of such loss or damage. Any waiver under lhis paragraph 8.4 is limited to the extent of coverage for the subject loss or damage. Less~• and Lessor shall , upon obtaining lhe policies of insurance required hereunder, give notice to the insurance carrier or earners that lhe foregoing mutual waiver of subrogation is contained in this Lease . 8.5 Exemption of Lessor from Liability: Lessee hereby aggress that Lessor shall not be liable for injury to Lessee's bus iness or any loss of income lherefrom or for da ,age to the goods, wares, merchandise or other property of Lessee , Lessee's employees. invitees . custcmers or any other person in or about the Premises, nor shall Lessor be liable for injury to the person of Lessee, Lessee's employees, ager.ts or contractors , whe lher such damage or injury is caused by or results from fire. steam , electricity, gas, water or rain , or from lhe breakage . leakage , obstruction or other def eds of pipes, sprinklers, wires, appliances . plumbing , air condition ing or lighting fixtures , or from any other cause . whether the said damage or injury resulls from conditions arising upon lhe Premises or upon other portions of 1;,e building of which the Premises are a part or from other sources or places and regardless of whether the cause of such damage or injury or the means of repairing lhe same is inaccessible to Lessee. Lessor shall not be liable for any damages arising from any ad or neglect of any other Lessee , if any , of the building in which the Premises are located. 3 9. DAMAGE OR DESTRUCTION: 9. 1 Partial Damage-Insured : Subject to the prov isi ons of Paragraph 9.3 and 9.4, If the • Premises are damaged and such damage was caused by a casually covered under Paragraph 8.2, Lessee shall , at Lessee's expense , repair such damage as soon as re asonably poss ible and this lease shall continue ir. full force and effect . In no event shall Lessor be required to repair or replace Lessee 's fixtures , equipment or Lessee improvements. 9.2 Partial Damage-Uninrured : Subject to the provisions of Paragraphs 9.3 and 9.4, ~ at any lime during lhe tenn hereof the Prem ises are damaged , except by a negligent or willful act of Lessee, Lessee's agents , employees or invttees (in whi ch event Lessee shall make the repairs at its expense) and such damages was caused b'l a casualty not covered under any insurance required to be maintained pursuant to Paragraph 8.?., Lessor may, at Lessor's oplion etth~r 0) repair such damage as soon as reasonably possible at Lessor's expense , In which event this lease shall continue in full force and effect , or (lij give written notice lo lessee within th irty (30) days after the date of the occurrence of such damage of Lessor's intention to cancel and tenninate this Lease JS of the date of the occurrence of such damage . In the event Lessor elects lo give such notice of Lessor's intention lo cancel and lenninate this Lease , Lessee shall hav e the right within ten (10) days after the receipl of such notice to give written notice to Lessor of Lessee 's intention to repair such damage al Lsssee 's expense , wit hout re imbursement from Lesso r, in wh ich event this I.ease shall conti nue in full force and effect , and Lessee shall proceed to make such repairs as soon as rea:;onably possible . If Lessee ooes not give such not ice within such 10-<lay period , this Lease shall be canceled and tenn inated as of the date of the occurrence of such damage . 9.3 Total Destruction: if at any ti me during the tenn hereof the Prem ises are totally destroyed from any cause whether or not cov ered by the insurance requ ired to be maintained pursuant to Paragraph 8.2 (I nclud ing any total dest,1Jction required by any authorized public authority) th is Lease shall automatically tenninate as of the da:e of such total destruct ion . 9.4 Damage Near End of Term : If 50% or more of the Prem ises are destroyed or damaged during the last three months of the term of the Lease , Lessor or Lessee may , at etther's opti on, cancel and tenn in ate this Lease as of the date of occurrence o! such damage by giving written notice of tenninatlon to the other within 30 days after the date of occurrence of such damage . • 9.5 Abatement of Rent: Lessee 's Remedies : (a) If the Premises are partially destroyed or damaged , and Lessor or Lessee repairs or restores them pursuant to the prov isi ons of th is Section 9, the rent payable hereunder for the period duri ng wh ich such damage. repair or restoration continues shall be abated in proportion to the degree lo wh ich Lessee 's use of the Prem ises is impaired . Except for abatement of rent, if any, Lessee shall have no cla im against Lessor for any damage suffered by reason of any such damage , 1estructlon, repair or restorat ion . (b) If Lessor shall be obligated to repair or restore the Premises under the provision of this Section 9, and shall not commence such repair or restoration within 30 days after such obligations shall accrue , Lessee may , at Lessee 's option , cancel and tenninate this Lease by giving Lessor written notice of Lessee 's election to do so at any time prior to the commencement of such repa ir or restoration . In such event. th is Lease shall tenninate as of the date of such notice . 9.6 Termination : Upon tenn inalion of th is Lease pursuant to this S~<:tion 9, an equitable adjustment shall be made concerning advance rent and any advance payment~ m&de by Lessee to Le3sor. Lessor shall , in addition , return to Lessee so much of Lessee's security d~posit as has not theretofore been applied by Lessor. 9. 7 Limitation : Lessee shall have the right to tenninate this lease a~reement if any damages required to be repaired by Landlord are not repaired within 60 days for minor damage (50% of Premises ur less) or 120 days for substantial destruction (affecting greater than 50% of the Premises). 10 . PROPERTY TAXES : The Premises will be exempted from the Arapahoe County lax rolls as long as Premises is occupied by the City of Englewood and therefore there will be no charge to either Lessor or Lessee for said property taxes . 11 . UTILITIES : Lessee shall pay directly the cost of gas , heal, light , power, telephone , sewer and water, trash removal and other util iti es and serv ices supplies to the Premises , together with any taxes • thereon . 4 • • • 12 . ASSIGNMENT AND SUBLETTING: 12.1 Lossor's Consont R ■qui,-d : Lessee shall not voluntarily or by operation of law assign , transfer , mortgage , sublet , or otherwise transfer or encumber all or any part of Lessee's interest In this Lease or in the Premises , without Lessor's written consent , which Lessor shall not unreasonably withheld . Any attempted assignment . transfer, mongage , encumbrance or subletting without such consent shall be void , and shall constitute a breach of this Lease . 12.2 Lessee Affilla !e: Notw ithstanding the provisions of Paragraph 12 .1 hereof, Les.~ee may assign or sublet tho Premises . or any portion thereof, without Lessor's consent , to 1ny corporation which controls , is controUed by or is under common control with Lessee , or to any corporation resulting from the merger or consolidation with Lessee , or to any per.;on or entity which acquires all the assets of Lessee as a going concern of the business that is being conducted on the Premises, provided that said assignee assumes, in full, the obligations of Lessee under this Lease . Any such assignment shall not , in any way , affect or llmlt the llabillty of Lessee under the terms of this Lease even if after such assignment or subletting the terms of the Lease are materially changed or altered without the consent of Lessee , the consent of whom shall not be necessary . 12 .3 No Release of L11111: Regardless of Lessor's consent , no subletting or assignment shall release Les.see of Lessee 's obligation or alter the prtrr.ary liability of Les.see to pay the rent and to perform all other obligation to be performed by Lessee hereunder. The acceptance of rent by Lessor from any other person shall not be deemed to be a waiver by Lessor of any provision hereof. Consent to one assignment or subletting shall not be deemed consent to any subsequent assignment or subletting . In tho event of default by any ass ignees of Lessee or any successor of Lessee in the performance of any of the terms hereof, Lessor may proceed directly against Lessee without the necessity of exhausting remedies against said assignee . Lesso; may consent to subsequent assignments or subletting of this Lease or amendments or modifications to this Lease with assignees of Lessee without notifying Lessee , or any successor of Lessee , and without obtaining Its or their consent thereto and such actlon shall not relieve Lessee of liability under this Lease . 12.4 Attorney's Fees: In the event Lessee shall assign or sublet the Premises , or request the consent of Lessor to any assignment or subletting, or if Les.see shall request the consent of Lessor for any act Lessee proposes to do . then Lessee shall pay Lessor's reasonable attorney 's fees incurred In connection therewith , such attorney 's fees not to exceed $500 for each such request . 13 . DEFAULTS : REMEDIES : 13 .1 Defaults : The occurrence of any one or morr, of the following events shall constfote a material default and breach of this Lease by Lessee : (a} The vacating or abandonment of the Premises by Lessee . (b) The failure by Lessee to make any payment of rent or any other payment required to be made by Lessee hereunder, as and when due . where such failure shall continue for a period of three days after written notice thereof from Lessor to Lessee . (c ) The failure by Lessee to observe or perform any of the covenants, conditions or provision of th is Lease to be observed or performed by Lessee . other than described in Paragraph (b) above , where such failure shall continue for a period of 30 days after written notice hereof from Lessor to Lessee: provided , however. that if the nature of Lessee's default is such that more than 30 days are reasonably required for its cure , then Lessee shall not be ueemed to be in default if Lessee commenced such cure within said 30-day period and thereafter diligently prosecutes such cure to completion. (d) 0) The making by Lessee of any general arrangement for the benefrt of creditors: 01) the filing by or against Lessee of a pelilion to have Lessee adjudged a bankrupt or a petition for r organization or arrangement under any law relating to bankruptcy (unless, in the case of a petitlon flied ag ainst Lessee, the same is dismissed with in 60 days); Oil} the appointment of a trustee or receiver to tak e posse ssion of substantially all of Lessee's assets located at the Premises or of Lessee's Interest In this Lease , where possess ion is not restored to Lessee within 30 days : or Ov} the attachment. execution or ot her judicia l seizure of substantially ail of Lessee's assets located at the Prem :ses or of Lessee's Interest In this Lease , where such se izure :s not discharged within 30 days . (e) The discovery by Lessor that any financial statement given to Lessor by Lessee, any ass lgne• of Lessee , any sub-Lessee oi Lussee, any successor in interest of Lessee or guarantor of Lessee 's obligat ion hereund er. and any of them. was materially l'alse . 5 13 .2 Remedies : In the event or any such material default or breach by Lessee . Lessor may at any time tt,ereafter. with or without notice or demand , and without limiting Lessor in the exercise or any right or remedy which Lessor may have by reason or S1Jch default and breach : (a) Tem,inate Lessee's rtg~• to possession or the Premises by any lawful means , in which case this Lease shall tem,inate and Lessee shall immediately surrender possession or the Premises to Lessor. In such event , Lessor shall be entitled to recover rrom Lessee all damage Incurred by Lessor by reason or Lessee 's default including , but not limited to . the cost of recovering possession of the Premises : expenses of relettlng , including necessary renovation and alteration or the Premises . reasonable attomeys ' fees and any real estat e commission actually pa id; the worth at the time or award by the court having jurisdiction thereof or the amo,--t by which the unpaid rent for the balance of the tern, after the time of such award exceeds the amou11t of such rental loss for the same period that Lessee proves could be reasonably avoided ; that po r'Jr,n of the leasing commission paid by Lessor pursuant tJ Paragraph 15 applicable to the unexpired tern, of this Lease . (b) Maintain Lessee's right to · Jssession in which case th is Lease shall continue in effect whether or not lessee shall have aba · •red the Premises . In such event Lessor shall be entltled to enforce .11 ~f !ho Lessofs rig hts an• '~'""' ,o under this Lease , including the right to recover the rent as ii becomes due hereunder. (c) Pursue any oth a rem edy now or hereafter available to Lessor under the laws or judicial decisions of the State or Colorado . 13 .3 Default by Lessor: Lessor shall not be ;n default unless Lessor falls to perfom, obligations required of Lessor within a reasonable time. or such shorter period of time as Is reasonab:e In the event of any emergen cy, but in no event later than th irty (30) days aft er written notice by lessee to Lessor and to the holder of any first mortgage or deed of tru st coverii,q t~e Prem ises whose name and address hall have theretofore been furnished to Lessee in wri'.11 g, ne r .. ,,::g wherein Lessor has railed to perfom, such obligations: provided, however, that if the natu r• ~! 1 es:.,•, 'r-trbligation is such that more than thirty (30) days are required for perfom,ance , then lessor •,:h :,11 no! t , in default If Lessor commences perfom,ance within such 30-d ay period and the, ea:,,:, dm~entiy prosecutes tiie same to completion. 13 .4 Late Charges: Lessee hereby acknowledges that lat e nayment by lessee to Lessor of rent and other sums due hereunder will cause Lessor to incur costs not contemplate1 by this Lease, the exact amount of which will be extremely difficult to ascertain . Such costs include . but are not limited to, processing and accounting charges and late charges which may be imposed on Lessor by the tem,s of any mortgage or trust deed covering the Premises . Accordingiv , ~ any installment of rent or any other sum due ram, Lessee shall not be rece ived by Lessor or Lessr,fs designee within ten (1 O) days after such amount shall be due . Lessee Jhall pay to Lessor a late charge equal to 15% of such overdue amour ... The parties agree that such late charges represents a fair ar,d reasonable estimate of the costs Lessor will incur by reason a, late payment by lessee . Acceptance of suci, ,.te charge by Lessor shall in no e•,ent constitute a waiver of Lessee's defautt with respect to such overdue amount. nor preve,1t Lessor fi'om exercising any or the other ri ~hts and remedies grant ed hereunder. 14 . CONDEMNATION : If the Premises or any portion thereof are taken under the po•,,er of eminent doma in. or sold under the threat of the exercise of said power (all of which are herein called "condemnation"), this Lease shall tem,inate as to the part so taken as or the date the condemning •uthority takes possession . If more than 25% of the floor area of the improvements of the Premises. or more than 50% or the land area of the Premises which is not occupied by any improvements , is taken by condemnati on, lessee may , at Lessee's option , to be exercised in writing only within ten (10) days after Lessor shall have given lessee writte n notice of such taking (or in the absence of such notice , within ten (10) days afte r the condemning authority shall have taken possession) tem,inate this Lease as of the date the condemmng authority takes such posses sio n. If Lessee do•s not tem,inate this Lease In accordance with the foregoing, this Laase shall remain in fu ll force and effe ct as to the poItion of th ·, Premises remaining , except that the rent shall be reduced in the proportion that the ffoor area taKen bears to the total floor area of the building situated on the Prem ises . Any reward for the taking of all or any part of the Premises under the power of eminent domain or any payment made under threat of the exercise of such power shall be the property of Lessor. whether such award sh :ill be made as compensation for the diminution in value or the leasehold or for the taking of the fee , or as severance damages : provided, however, that lessee shall be entitled to any award for loss of, or damage to , lessee's trade ftxtures and RW0601:.a .lcOl 100: J"6 100o 6 • • • • • • removable persona! property . In the event that th is Lease is not tenm inated by reason of su ch condemnation , Lessor shall , to the extent of severance damages received by Lessor in connection with such condemnation , repair any damage to the Premises caused by such condemne tlon except to the extent that Lessee has been reimbursed therefore by the condemning authority . Lessee shall pay amount in excess of such severance damages required to com plete such repair. 15 . BROKER'S FEE: Upon execution of this Lease by both parties, Lessor shall be responsible for the payment of the real estate broke(s fee as set forth in a separate agreement between Lessor and Broker, If any . 16 . GENERAL PROVISIONS: 16 .1 Estoppol Certificates : (a) Lessee shall , at any time, upon n,i: Iese tr.a11 teo (10) days prior written notice fonm Lessor, execute , acknowledge and deliver to Lessor B statemen,• in writing (I) ~ertlfying that thi s Lease is unmodified and in full force and effect (or, if modified , st ating th at nature of such modification ann certifying that this Lease , as so modified, is In full force ari d effe l 1) and the date to which the rent a, d other charges are paid in advance . ,f any , and (II) ackn,,,., ,ldginq that there are not, :o Lessee's knowledge , any uncured defaults on the part of Lessor hJn:w•~tr, or specifying such defaults If any nre claimed . Any such statement may be conclusively relied upun by any prospective purchaser or encumbrancer of the Premises . (b) Lessee's failure to deliver such statemer.t within such time shall be conclusive upon Lessee (i) that this Lease is in full force and effect, without modification excert as may be represented by Lessor, (lij that there are no uncured defaults in Lesso(s perfonmance, and (hi) that not more than one month's rent has been paid in advan ce or such failure may be considered by Lessor as a default by Lessee under this Lease . (c ) If Lessor desires to finance or refinance the Premises , or any part thereof, Lessee hereby agrees to deliver to any lender designated by Lessor, such financial statement of Lessee as may be reasonably required by such lender. Such statements shall include the past three years' financial statements of Lessee . 16 .2 Lessor's Liability : The tenm "Lesso(' as used herein sr all mean only the owner or owners at the lime in question of the fee title or a Lessee's interest in a ground lease of the Premisas, and except as expressly provided in Paragraph 15 , In tf ,e event of any transfer of such title or interest, "essor herein named (an in case of any subsequent transfers the then granter) shall be relieved from and after the date of such transfer of all liabilit ·· as respects Lesso(s obligations thereafter tc be perfonmed , r"Ovlded that any funds in the hano , of Lessor. or the then prantor, at the time of such transfer, in which Lessee has an interest, shall be delivered to the grantee . Th : obligations contained in this Lease to be perfonmed by Lessor shall, except as aforesaid, be binding on Lesso(s successors and assigns, only during their respectable periods of 1wnership. 16 .3 Severability : The invalidity of any provision of this Lease , as detenmined by a court of competent jurisdiction. shall in no way affect the valldlty of any other provision hereof. 16.4 Interest on Past-Due Obligation~: Except as expressly herein provided , any amount due to Lessor not paid when due shall bear interest 11 12% per annum from the date due. Payment of such interest shall not excuse or cure any default by Lessee under this Lease , provided , however, that interest shall not be payallle on late charges incurred by Lessee. 16 .5 Time of Essence: Time is of the essence . 16 .6 Captions: Article aid paragraph captions are not a part hereof. 16 .7 incorporation of Prior Agreements: Amendments: This Lease contains all agreements of the parties v:':h respect to •ny matter m an:ioned herein . No prior agreement or understanding perta ining to any such matter shall be effective. Th is Lease may be modified In writing only, signed by the parties in interest at the time of the modification . Except as otherwise stated in this Lease , Lessee hereby acknowledges that neither real estate broker, nor any cooperating broker on this transaction , nor the Lessor, nor any employees or agents of any said persons , has made any oral or written warranties or representations to Lessee relative tc the condition or use by Lessee of said Premises . 16 .8 Notices, Any no ti ce required or penmitted to be given heMunder shall be in writin~ and may be given by persona• ~elivery or by certified mail. return receipt requested, and if given per.sonally or RW0601:.1 .&eu1 1uo: J ,lo l\)l)c, 7 by mail , shall be deemed sufficiently given if addressed 10 Lessee or to Lessor at the address noted below the signature of the respective parties , and actu 11lly delivered or refused for delivery , as the case may be . Eit her party may by notice lo lhe other specify a different address for notice purposes except that upon Lessee 's laking possession of the Prem ises, l~e Prem ises shall constitute Lessee 's address for no ti ce purposes . A copy of all notices req uire d or permlt,ed 10 be given lo Lessor hereunde r shall be concummtly transmitted lo such party or parties at such artdresses as Lessor may from time to time hereafter designate by notice lo Lessee . 16 .9 Waivers : No waiver by Lessor of any prov isi on hereof shall be deemed a waiver of any other provision hereof or of any subsequent breach by Lessee of the same or any othe r provision. Lesso(s consent to or approva l of any act shall not be deemed to render unnecessary the obtaining of Lesso(s consent to or approv al of any subsequent act by lessee . The acceptance of rent hereunder by Lessor shall not be a 'Naiver of any preceding breach by lessee of any provision hereof. 16 .10 Record ing : Lessee shall not record this Lease without Lesso(s prior written consent , and such recordallon without Lesso(s consent shall , at the option of Lessor, constitute a non-curable default of Lessee hereunder. Lessee shall, upon •·mtten request of Lessor , execute , acknowledge and deliver to the ether a short form "memorandum " of this Lease for recording purposes . 16 .11 Holding Over: II Lessee remains in possusion of the Premises , or any part thereof, after the expiration of the term llereof, without the express written consent of Lessor, such occupancy shall be a tenancy from month-to-month at a rental in the amount of 125% the last monthly rental plus all other charges payable hereunder, and upon all \he terms hereof applicable to a month-to-month tenancy . 16 .12 Cumulative Remedies: No remedy or election hereunder shall be deemed exclusive , but shall , wherever possible , be cumulative with all o!her remedies at law or in equ ity. 16 .13 Covenants and Conditions : Each prov is ion of this Lease performable by Lessee shall be deemed both a covenant and a condition . 16 .14 Binding Effect: Choice of Law: This Lease shall bind the parties . their personal representatives , successors and ass igns . This Lease shall be governed by the Laws of the Slate of Colorado . 16.15 Subordination : (a) This Lease , at Lesso(s option , shall be subordinate to any ground lease , mortgage , deed of tnist, or any other hypothecatlon for security now or hereafter placed upon the real property of which the Premises are a part and to any and all advances made on the security thereof and to all renewals , modlficaUons , consolldatlons , replacements and extension thereof. Notwithstandln ~ such subordination . Lessee 's right to qu iet possess ion of lhe Premises shall not be disturbed if Lessee is not in default and so long as Lessee shall pay lh e rent and observe and perfom1 all of the provision of !his Lease . Unless this Lease is otherwise terminated pursuant 10 Its terms , ii any mortgagee , trustee or ground Lessor shall elect lo have this Le ase prior to the lien of its mortgage , deed of trust or ground lease, and shall give written notice !hereo f to Lessee , this Lease shall be deemed prior to such mortgage, deed of trust , or ground lease, whether !his Lease is dated prior or subsequent to the date of said mortgage, deed of trust or ground lease or the date of recording !hereof. (b) Lessee agrees lo execute any documents required to effectuate such subordination or to make this Lease prior to lhe lien of any mortgage , deed of trust or ground lease, as lh e case may be, and failing to do so within ten (1 0) days after written demand does hereby mar.e , consttt te , and imevocably appoint Lessor as Lessee 's attorney-in-fact , and in Lessee 's name , place , and ste~d to do so . 16 .16 Attorney's Fees : If either party or lhe broker named herein brings an action to enforce the terms hereof or declare rights hereunder , lhe prevailing party in such action , as determined by the presiding fact-finder on trial or appeal , shall be entitled lo his reasonable attorney's fees lo be paid by the los ing party as fl>.pd by the court . 16 .17 Lessor's Access: After r~aso nab\e prior notice to Lessee , Lessor and Lesso(s agents shall have the right to enter ltle i'!l!mises al reasonable limes for the purpose of inspecting the same , showing the same lo prospective purchasers , la nder or Lessees , and making such alterations , repa ir, Improvements or additions to the Premises or to lhe building of which they are a part as Lessor may deem necessary or desirable . Lessor may , al any time , place on or about the Premises any ordinary "For Sale " signs , and Lessor may , at any time during the term hereof, place on er about the Prem ises any ordinary "for Lease " signs, all without rebate or rent or liability to Lessee . 8 • • • • • 16 .18 Signs and Auctions : Lessee shall only place bus iness signage on lhe Prem is es that is In compliance with Jhe local sign ord inances and previously approved by Lessor . In Its reasonable discretion . 16 .19 Merger: The voluntary or other surrender of this Lease by Lessee , or a mutual cancellation tt,ereof , or a termination by Lessor, shall not work a mefljer, and shall , at the option of Lessor, terminate all or any exist ing subtenancies or may , at the option of Lessor, operate as an assignment to Lessor of any or all of such subtenancies . 16.20 Authority: Each individual executing this Lease on beh alf of the Lessee represents and warrants that he /she is duly authorized to execute and deliver th is Lea se on behalf of sa id Lesse ~ In accordance with a duly adopted resolution of the required City authorities , or in accordance wilt , !he Bylaws of said LeSSlle , and that this Lea se is binding upon sa id Lessee in acco an et1 with Its terms. Lessee shall , with in th l11y (30) days after execution of this Lease , deliver to Losso r a ce11lfted t'1>~I• r.r a resolut ion of the requ ired City authorities authorizlng or ratifying the execution of this Lease . 16 .21 Conants: Wherever in this Lease the consent or approval of one party Is required to an act of the other pally, sucn consent shall not be unreasonably withheld . 16 .22 Guarantor: In the event there is a guarantor of th is Lease , sa id guarantor shall have Ii'\~ same obligations as Lessee under Paragraphs 16 .1 and 16 .20 of th is Lease. 16 .23 Qu iet Possession : Upon Lessee paying the fixe d rent reserved hereunde r lind observing and perform ing all of the covenants , conditions and provisions on L~ssee's pan t·., l)e o!Jservr.d and performed hereunder, Lessee shall have quiet possession of the Premises for the enti l'e term hen.of for the use provided In Section 6.1 subject to all of the provisions of this Lease . 16 .24 Fi rst Right of Refusal : If Landlord receives a bona fide third-party offer (a "sale offer") for the sale of all or any portion of the space in the Building (the "Space;, before ente nng Into a sales agreement Landlord will offor to sell the same Space to Tenant at the price and ot1 1erwlse nn th e terms and conditions of the sale, offer. If within 15 days rollowing receipt of Landlord's c,ffe .-Tenant agrees in writing to purchase the Space on the terms specified in thi, offer , Landlord and Tenant will execute an agreement for Tenant's purchase of the Space within 30 r,ays after Landlord's rece ipt of Tenant 's notice of acceptance . If the purchase agreement with Tenant is not signed within such 30-day period, Landlord will have the right to accept the third -party offer free of the rights of Tenant under tt,,s Section 16 .24 . Tenant's right of Ors i refusal under th is Section 16 .24 will continue throughout the Term ~'I/\\ any renewal term . 16 .25 Additional Provis ions : (a) Lessor s~all deliver the leased premises in a clean condition a,Id with all systems currently installed in the premises : elect rical , mechan ical. lighting and doors , in good opera ti ng condition . (b) Lessee shall ma inta in the premises In a Clean . orderiy and safe manner and be respons ible for parking lot cleaning , and parking lot and sidewalk snow removal. (c ) It is Lessee's respons ibility to insure that their use of the premises comp'!". with local zon ing ordinances for said use. (d) Lessee covenants with Lessor to notify Lessor of any and all hazardous :.:.<>Stances (as defined below) generate or stored a the prem ises , to comply with all obligations imposed by applicable law . rules. regulations or requ irements of any ~o,.emmental authority upon such generation and storage of hazardous substances, to proh ibit any gene rati on , storage of disposal of hazardous substances at tho Premises , except as perm itted by Lease , to de liver promptly to Lessor true and complete copies of all noti ces received by Lesse e from any governmental authority with respect to the generation, storage or disposal by Lessee of hazardous substances . to promptly notify Lessor of any spills or accidents involv ing a hazardous substance , and to permit reasonable entry onto the Premises by Lessor for verification of Lessee's complian ce with the cov enant. Lessee agrees to utilize only transporters approved by the Env ironmental Protection Agency and the State of Colorado to deliver and remove hazardous substances form the Premises . Less ee also agrees to indemnify and defend Lessor (with legal counsel reasonably acceptable to Lessor) from and against any costs , fees o , Qenses (lndudlng , with out •Imitation , clean-up expenses , th ird-party cla ims and environmental im,._,.,,,ent expenses , loss of r~nt , and rea sJ naL•le di sposal of hazardous substances . This indemn ir,c,1t1on by Lessee shall survive the term ination o, expiration of th is Lease . "Hazardous substance s" shall mean : 1. 'Hazardous substance ,•, as defined in the Comprehensive Environmental Response , Compensation and Liability Act .• s amended ; R.woeo,:.-""'111002 J~100o 9 2. 'PCBs", as defined In 40 C.F.R. 761 , or analogous regulations promu lgated under the Toxic Substances Control Ad, as amended; 3. 'Asbestos', as defl nod in 29 C':.F.R. 1910 .1001 , et. seq .. ar d analogous regulations promulgated under the Or.cupational Safety and Health Ad of 1970, •• amended : 4 . Oil petroleum ba:ied produds; 5. Radloadive mat •l rial ,,r waste ; 8. Biolog ical and otho r medical produds and waste material ; and 7. 'Hazardous wai;t es•, as defined In Resource Conservatlor. and Recovery Ad, as amended ; as such ad!, may be amended from time to lime, and su.:h terms may be expanded by addttlonal legislation 01 a ge,:eral nature . Al Lessofs option , In the 80 days prior to the termination of the Lease , Lessor may require Lessee, at Lessee's expense, to provide an environmental audit to Lessor for the premls s, where Lessor has a reasonable basis for such request . (e) RENEWAL OMlONS: Lrssee is given three (3) consecutive one (1J ~"ar renewal option for lease renewal. All terms and conditions of this lease shall be the same du ri ng each one year option period except that the rental pl ld shall be Increased by three (3%) percent over the amount paid during the preceding year. LeSSl·• must notify Lessor In writing at least sixty (80) days prior to the expiration of the then current lease term that ii Intends to exercise such one year lease option term . No option may be exercised by Lessee if the Lessee Is then In default under this Lease . (I) EARLY TERMINATION: Al any time after the first eight (8) months of the lnltlal lease term, Lessee mey term inate this le ase agreement by providing Lessor with at least one hundred twenty (120) day wri tl6!1 noti'-<I of such intent, accompanied by payment of all rents attributable to the period from the dote 11! notir.~ through the date of eariy termination . The parties hef'l!to h. ve executed this Lease at the place on the dates specified Immed iately adjacent to the ir respective signatures . LESSEE : LESSOR : Entity : City of Englewood, a municipal corporation By · ~---·. Pri~ted Name and Titie : Beverly J • Bradshaw, Bret T•rry And Yfflo ii ,it;,er llgn'ng u 1n lndN1du11 or a duly Mayor And Yfflo II either signr.,g as an lndlvkh.1111 or II duly authortztd officer ot th• entity 1t1ted 1bov1 al.4:,ortztd offlc• of th • entity stated 1t,ov1 Whose Address Is: 1000 Engle,,ood Pkwy. Engle,,ood, CXl 80110 Phone : __ 3_03 __ 7_62_-_2_3_20 ___ _ Fax: Date : RW06012" "<01100'2.l~'.OOf 10 Whose Address Is: c/o Bret Terry Masonry 3829 South Fox street, Unit A Englewood , CO 8011 O Phone : 303 798 .9563 Fax : 303 795 .9472 Date : • • Dal e Ja nu ary 22, 2002 INITIATED BY : Safe ty Serv ices COUNCIL COMMUNICATION Agenda Ite m 10 a Ii STAFf SO U~CE : Subject: An O rdinance for a build ing lease [)i -,,ios Chi efT o m Vand e rm ee COUNCIL GOAL A"ID PREVIOUS COUNCIL ACT ION Th e lease of building space a t 3629 S. Fox Str eet. Un it 8, wa; ._:;;r•,,sed by Council at ,:· c Study sess ion o n Decembe r I 0, 2001 , and received fav orable ro,,~w. RECOMMENDED ACTION The Po lice Di visio n of th e Depart ment o f Sa1 ,.,y Services is reque ,;' ,: that Co un ci l approve a Bill for an Ordinance fo r th e City to e nter icto a lease o f the building located a t 3629 S. Fox St., Unit 8 . The building wi ll provide a dditi o nal c ffice space and sto ra ge s pace for th e Professional Sta nda rd s Bur ea u and the Evide ·,ce a nd Property Section. • BAC KGROUND, ANA LYSIS , AND ALTERNATIVES IDENTIFIED • The Departm e nt o f Safety Se rvi ces is in desperate need of addit io na l office a nd sto rage s pace. Th e space a t 3629 S. Fox provides availabl e office s pace to re-l ocate the Pr ofess ional Standards Burea u yet mai nt a in th ei r operation wi thin walking distance of the ma in poli ce/fir e compl ex. Additionall y, thi s faci li ty w ill provide much needed storage space for property a nd evi d e nce. Recent le ga l requirements have significa.1tly increased th e amo unt of ev idence req uire d to be store d for extr em el y long p e riods o f time. Th e City Atto rn ey has reviewed and approve d this lease as to for m a nd content. FIN AN CIAL IMP ACT Th e annu al costs to the City oi Englewood include the l•·se amo unt oi S 18,792.00. Utiliti es are expected to cost a p proxi mately $2 ,400.00. The depanment also anticipates movin g and start up costs of approxi ma tely 55 ,000.00. All of the costs a ssociate d w ith the lease of th is pro perty are ex p ected to be fun ded through asse t forfei tu re accounts thus eli minatin g any impact o n the departme nt's establis hed and appro ved budget. LIST OF ATTAC HME NTS Co py oi Lease