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HomeMy WebLinkAbout1995 Ordinance No. 019• • ORDINANCE NO . /J.... SERIFS OF 1995 BY AUTHORITY COUNCIL BILL NO . 19 INTRODUCED BY COUNCIL MEMBER WAGGONER AN ORDINANCE AUTHORIZING THE CITY OF ENGLEWOOD TO EXTEND THE LEASE OF THE PRO ::PUTI' SYSTEMS, INC . CLUBHOUSE BUILDING wmcH IS LOCATED AT THE ENGLEWOOD GOLF COURSE. WHEREAS, the City of Englewood, Colorado currently owns property at the Riverside Miniature Golf Course; and WHEREAS, the City of Englewood and PRO ;:PUIT Systems, Inc. have entered into an agree ment for the operation of the miniature golf course and go-kart track; and WHEREAS, Charter requires all interests in real property to be approved by ordinance; :-ow, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ENG LEWOOD , COLORADO, AS FOLLOWS : ~-The Englewood City Council hereb:, approves extending the Building Lease betwee n Pro::Putt Systems, Inc. and the City of Englewood through the year 2010. ~-The Building Lease to Pro::Putt Systems, Inc. Clubhouse Building located al t h e Englewood Golf Course, attached hereto as "Exhibit A", is hereby accepted and approved by the Englewood City Council. The Mayo r is authorized to execute and the Ci ty Clerk to attest and seal the Agreement fo r and on behalf of the City of Englewood, Colorado. Introduced, read in full, and passed on first reading on the 15th day of May, 1995 . Published as a Bill for an Ordinance on the 18th day of May, 1995. Read by title and passed on fin al reading on the 5th day of June, 1995. Published by title as Ordinance No. /i, Series of 1995 , on the 8th day of June, 1995. ~d.fa Lo uc1i shia A. l,;llis , City Clerk I, Loucrishia A Elli s , City Clerk of the City of Englew1Y -1, Colorado, hereby certify that the above and foregoing is a true copy of the Ordinance passed on fin eading and published by title as Ordinance No . Ji_, Series of 1995 . -1- E XHI BIT !, BUILDING LEASE This lease, dated ----c---,--=--,,---,--is between the CrrY OF ENGLEWOOD, 34 00 South Elati Street, En1lewood, Colorado 80ll0, as Landlord and PRO::PUTI' SYSTEMS, INC., aa Tenant. In co nsi deration of the paym ent of the rent and the performance of the covenants and agreement! by the Tenant set fo rth herein, the Landlor d do es hereby lease to the Tenant the following described premises situate in Arapahoe County, in uie State of Colorado; the address of which is the Clubhouse Bwldini a t Riverside Miniature Golf Course 2201 West Oxford Avenue , Englewood , Colorado 80110. Said premises, with all the appurtenances, are leased to the Tenant from the date of signing through Se ptember 1, 2010, at and for a re ntal of Three Thousand Four Hundred Dollars ($3,400.00) per year, payable according to the following schedule : $100.00 per month for the months of January, February and March October, No vember and December $200.00 per month for the month s of April and September $600.00 per month for the months of May , June, July and Aug,:u,t . The Tenant may with approval of the Landlortl extend this leas e in conjunction w;th the 1995 Agreement fo r Operation of Miniature Golf Course and Go Kart Track between th• City of Englewood and Pro ::Putt System s, Inc ., notice of extension shall be given in writini: before the termination of this lease. THE TENANT, IN CONSIDERATION OF THE LEASING OF THE PREMISES AGREES AS FOLLOWS : 1. To pay the rent for the premises abo ve-described. 2. To keep the improvements upon the premises including, drainage , storm sewer, fences, sewer connections, plumbing, wiring and glass in good repair, all at Tenant's expense, and at the expiration of this lease to surrender the premises in as good a condition as wh en the Tenant entered the premises, lo ss by fire, inevitable accident, and ordinary wear excepted. To keep all sidewalks on and around the premi ses fr ee and clear of ice and snow , and to keep the entire premi""s free from all litter, dirt, debris and obstructions ; to kee p the premises in a clean and sanitai:y condition as reqwred by the ordinances of the city and county ir. ·,rhich the property is situated with no storage of derelict or j unk vehicles. 3. To sublet no part of the premises, and not to assign the lease or any interest ther ein without the written consent of the Landlord. 4. To use the premises for no purposes prohibited by the laws of the UnitP.d States or the State of Co lorado, City of Englewood, or of the ordinances of the city or town in which said premises are located, and for no improper or questionable purposes whatsoever, and .:o neither permit nor suffer any disortlerly conduct, noise or nwsance having a tendency to annoy or disturb any pers ons occupying adjacent premises. 5. To neither hold nor attempt to hold the Landlord liable for any injury or da mage, either proximate or remote , occurring through or caused by the repairs, alterations, injury or accident to the pr emises, or adjacent premises, or othe r parts of the above premises not herein demised, or by r ea son of the negli gence or default of the owners or occu pants thereof or any other person , nor to hold the Landlord liable for any injury or damage oc casion ed by defecti ve electric wiring, storm water , nor sai d premises to be used for any purpos e which would render th ,. insuranc e ther eo n vo id or the in$urance risk more hazardou s, nor make any alteratioi. ••. or changes in, i:pon , or abour. aid obtaining the writt en consent of the Landlord therefor . ' • • • • • 6. To allow the Landlord to enter upon the premises at any reasonable hour . IT IS EXPRESSLY UNDl>RSTOOD AND AGREED BETWEEN LANDLORD AND TENANT AS FOLLOWS : i . No assent. express or im plied, to any breach of any one or more of the agreements hereof shall be deemed or taken to be a waiver of any succeeding or other breach . 8. If, aft.er the expiration of this lease, the Tenant shall remain in possession of the premises and continue to pay rent without a written agreement as to such possession, then such tenancy shall be regarded as a month -to-month tenancy, at a monthly rental, payable in advance, equivalent to the last month's rent paid under this lease, and subject to all the terms and conditions of this lease. 9. If the premises are left vacant and any part of the rent reserved hereunder is not paid, then the Landlord may, without being obligated to do so, and without terminating this lease, retake possession of the said premh es, making such changes and repair-: as may be required, giving credit for the amount of rent so received less :\ll expenr.es of such changes and repairs, and the Tenant shall be liable for the balance of the rent herein reserved until the expiration of the term of this lease. 10. Th• Landlord acknowledges receipt of a deposit in the amount of S-0-. 11. At the Landl ord's option, it shall be deemed a breach of this lease if the T, nant defaults (a ) in the payment of the rent or any other monetary obligation herein: or (b) in the performance of any other term or condition of this lease. The Landlord may elect to cure such default and any expenses of curing may be added to the rent and shall become immediately due and payable. In the event that the Landlord elects to declare a breach oi this lease , the Landlord shall have the right to give the Tenant three (3) days written notice requiring payment of the rent or compli an ce with other terms or provisions of the lease, or delivery of the possession of the premises. In the event any default remains uncorrected after three (3) days written notice, the Landlord. at Landlord's option, may declare the term ended. repossess the premises, expel the Tenant and those claiming through or under the Tenant and remove the effects of the Tenant, all without being deemed guilty in trespass or of a forcible entry and detainer and without prejudice to any other remedies to which the Landlord may be entitled. If at any ti me this lease is terminate under this paragraph, the Tenant agn,es to peacefully surrender the premises to the Landlord immediately upon termination , and if the Tenant remains in po"ession of the premises, the Tenant shall be denmed guilty of unlawful detention of the premises. The Landlord shall be entitled to recover from the Tenant all damages by reason of the Tenant's default, including but not limited to the cost to recover and repossess the prem ises, the expenses of reletting, necessary renovation and alteration expenses, commissions and the rent for the balance of the term of this lease. l2. In the event of any dispute arising under the terms of this lease, or in the event of non- payment of an y sums arising under this lease and in the event the matter is turned over to an attorney, the party prevai'.ing in such dispute shall be entitled, in addition to other damages or costs, to rec ,,ive re,csonable attorneys fees from the other party. 13 . In the event any payment required hereunder is not made within (10) days after the payment is due, a late r:harge in the amount offive perce nt (5%) of the payment will be paid by tl,e Tenant. 14 . In the event of a condemnntion or other taking by any governmental agency, all proceeds shall be paid to the Landl ord hereunder, the Tenant waiving all right to any such payments . 15. Th is lease is made with the express understanding and agTeement that in the event the Tenant becomes in solvent , the Landlord may declare thi s lease ended, and all rights of the Tenant hereunder sha11 terminate and cease. 16 . Tenant rha ll insure the pre aises for public liab ility and property damage in the sun of One Million Dollars with the City of Englewood as an additional insured. -2· SHOULD ANY PROVISION of thi., leua violate any federal , atate or local law or ordinance, that provision shall be dee,ued amended to ao comply with such law or ordinance, and shall be construeG in & manner so u to comply . This le-shall be bindinr on the parties, their personal represenlDtives, !IUCCeSSOn and assigns. When used herein, the singular shall include the plural, and the use of any gender shall apply to both genden. i..ANDLORD TENANTS CITY OF ENGLEWOOD PRO::PUTT SYSTEMS, INC. .ll.Y.;.._ ------- By _· __________ _ Scott I. Simpaon STAT E OF COLORADO ) )sa . COUNTY OF ARAPAHOE ) T"nG f.,, • ·oing instrument was acknowledged before me this __ day of ___ ---~ 1995, by Scott L. Si!npson as President of Pro::P\,tt Syi:tems, Inc. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year first above written. My commission erpires: ______ _ NOTARY PUBLIC -3- •• • • • • • COUNCIL COMMUNICATION Date May 15, 1995 Initiated By I Agenda Item 10 a vi I Subject Amen d Agreement•; w ith Pro : :Putt Systems , Inc. Recreation Services Department I Staff Sourc , Jerrell Black , Direction of Recreation COUNCIL GOAL AND PREVIOUS COUNCIL ACTION Ordinance # 30, Series of 1994 · Lease Clubhouse Build ing Resolution # 49 , Se ries of 1992 -Amend Ex isting Agreement !Fees) Resolutio n # 67, Series of 1990 · Amend Existing Agreement to Include Go K~rts Resol ut ion # 1, Seri9s of 1988 · Agreement w ith Pro ::Putt Systems, lnc .lRiv erside) for Miniature Golf Op eration RECOMMENDED ACTION Recommendation from t l ,e Recreation Services Department to amend the agreements with Pro ::Putt Systems, Inc . a. Reco mmendation for t he udoption of a resolution amending the agreement with Pro ::Putt Systems, lnc.lRiveroide Miniature Golf Go /Karts) b. Recommendation for the adoption of a bill for a ordinance amending the c lubhouse lease agreement with Pro ::Putt Systems , lnc .lRiverside Miniature Golf Go /Karts) BACKGROUND, ANALYSIS , AND ALTERNATIVES IDENTIFIED Pro::Putt Systems, lnc .lRiverside ) began a miniature golf operation in 1988. The City of Eng lewood leases the property to Riverside and Riverside pays a percentage of gross sales to the City of Eng lewood . In 1990 Riverside added the Go /Kart facility. Rivers id e has been a very successful publir/private partnership . The facility provides a safe and secu re environment for fam ily entertainment. Riversiae is seeking to remain competitive in the market place by exµanding their operations and extending the ex isting agreements . Major Adjustments to Agreements include: • Extending existing agreements to the year 2010 • Add Bicycle rentals • Add Miniature Drag Strip w ith Jr . Drag sters • Add Bumper Boats • Current percentage due the City is 10% of Gross Sales . This amount will increase to 11 % beginning in 1996 and will increa se 1 % each year until it reaches 15 %. Thereafter, the percentage will rema ine d fixed at 15% for the remaining term of the agreements. Issues related to noise level and safetv havo bea n discusse d and re solved to the sa tisfactlor. of st att. The P,:•ks and R~:reation Commission v oted unan imously to approve the expansion plans. litatt concurs with that recommendation . ANANCI At. liifr~.CT History of Be, ,m ,es from Riv erside : 1989 $ 4 ,403 19M $15 ,205 19 90 $13,151 1991 $34,32!1 1992 $20,532· 1993 $13 ,387 1994 $14,616 Ad dition al Prriecte d Bevem ,es from Exnn osicn: Bik e Rental $ 375 an nually@ 15 % of Gross Sales Drag Stri1, $5,500 annually@ 11 % of Gross Sal es Bump er Boats 1.3,.Jll!l annually @ 11 % of Gross Sales Total Rev enues = $9 , i 75 annually .. Note: • Perce 1tage due the City was adjusted from 15% to 10% • • Revenues f ro m Drag Strip and Bumper Boats Sales will increase each year by 1 % until they re ar.h 15%. LIST OF ATTACHMENTS Re solution -Agreement Ordina nce -6uilding Rental Memorandum -Parks and Recreation Commission Rivers ide Propos al TJB CCR iver • •