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HomeMy WebLinkAbout1989 Resolution No. 052RESOLUTION NO, O:S;J... SERIES OF 1989 -- A RESOLUTION AMENDING RESOLUTION NO. 41, SERIES OF 1989, CONCERNING LEASE OF CITY GREENHOUSE PROPERTY TO DESIGN FLORAL SCHOOL, INC. FOR SCHOOL TRAINING PURPOSES FOR A PERIOD OF ONE YEAR. WHEREAS, the City previously passed a Resolution approving a lease with Floral School, Inc., trade name for Equestrian Services, Inc., a Colorado corporat ion, to lease the City greenhouse facility to c o nduct school training; and WHEREAS, the School, as part of the lease, was to supply a performance bond to cover possible default on its part in furnishing the horticulture needs of the City; and WHEREAS, the School was unable to get a performance bond for a reasonable premium and requested other arrangements to secure the City's interest; NOW, THEREFORE , BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ENGLEWOOD, COLORADO, THAT: Section 1. The revised Le ase be t wee n the City of Enqlewood and Design Floral School, Inc., tra de name o f Equestrian Services, Inc., a Colorado c orpo r ation, fo r a period of one year is hereby approved. A copy o f said Lease is attached hereto and incorp orated herein by reference . Secti o n 2. The May o r and Ci ty Clerk ar e hereby authorized to sign and attest said Lease for and en behalf of the City of Englewood. ADOPTED AND APP~OV ED th e 2nd day of Oc t ob er, 1989. ;:Jik~ IL w &.~tf Patricia H. Crow, City Clerk I, Patricia H. Crow, City Clerk for the City of Englewood, Colorado, hereby certify the above is a true copy of Resolution No • .:id:, Series of 1989. O~«~~~ Patricia H. Cro,1 DATE October 2, 1989 INITIATED BY STAFF SOURCE ISSUE/ACTION PROPOSED COUNCIL COIIMUNICATION AGENDA ITEM 11 (c ) Pub 11 c Works Departnient SUBJECT Greenhouse Amended Resolution for Lease of f.ngl e1.ood Kells Waggoner, Director of Publ 1c Works Council approve Re solution amend1 ng prev1 ous Reso 1 ut 1 on for 1 ease of Greenhou se Pr ope r ty . PREVIOUS COUNCIL ACTION Council approv~d Resolution No . 41, Series of IS89 , concerning lease of City A Greenhouse Pr operty . - STAFF ANALYSIS Lease ,,,11 protects the City against potential loss and is beneficial to the Ci ty . BACKGROU ~!l The previous lease required a SI0,000 performance bond . Lessee could not get a performance bond because the bonding people were saying it was more 1 i ke a guaran t ee payment bond rather than a pe r formance bond and wanted an un r ea sonable premium . Negotiat i ons h~ve resulted in the Lessee depositing with the City $7 ,800 over the period of the lease as surety for performance . Upon termination of the lease , the Ci l y wi 11 refund the $7,800 if there is no de fault by Lessee . FINANCIAL No change from previously approved lease . COMMERCIAL LIAS! PART I -GENERAL PROVISIONS 1. Parties. The parties to this lease are the CITY OF ENGLEWOOD, a Colorado municipal corporation, 3400 South Elati Street, Englewood, Colorado 80110, the Landlord (or Lessor), and DESIGN FLORAL SCHOOL, INC., Trade Name of EQUESTRIAN SERVICES, INC., a Colorado corporation, 3001 S. Federal Blvd., Denver, Colo r ado 80236, the Tenant (or Lessee). 2. Space Leased. ·i'his lease covers approximately 1 1/2 acres located on Union between Santa Fe and Feder.il Bh d. and incl~des two buildings presently known as the City of Englewood Greenhouse and Nursery Facility. 3 . Term o f Lease. This lease runs for a term of twelve months starting on September 1 , 1989. 4. Signs. The display o f signs visible o utside tl".e Tenant• s space is governed by the following rules: Current signs will be replaced at Tenant cost to a similar style as presently exists. PART II -RENT TERMS 1. Amount of Rent. This is a new lease. Tenant will pay no base rent. Tenant will be responsible fo r taxes, the cost of maintenance, utiliti ~s and all other operating expenses of the Te nant's space. In addition, the Tenant shall provide the following products and services : a. Tenant shall ?rovide up to 30,0CJ bedding plants to be available on about April 15, 1990. Landlord shall select the type and color o f the plants. Planes will be of the Zinnia, Petunia or Marigold er similar variety. b. Tenant shall provide plant care, as necessary, for the approximately 300 interior plants owned by the Landlord at its three major office locations and at t he lease d space. Purchase of new plants and replacements will be at the expe.nse of the Landlord. Plants will be inventoried at the beginning and end of the lease term. -1 - c. Tenant ■hall allow Landlord to keep up to 300 A trees and shrubs in a holding area in the rear of • the property. Such area cannot exceed 1/2 of the leased property without prior con ■ent of the Tenant, Tenant shall provide water to such trees and shrubs but will in no way be liable for loss or damage unless through negl i g~nce of Tenant. Insurance for the trees and shrubs, along with any Landlord personnel required to be on the premises, is the responsibility of the Landlord. 2. Use. The Tenant will •·se the space fe r vocational training of horticultural students as outlined in its curriculum as approved by the Colorado State Board for Community Colleges and Occupational Education. The Tenant agrees to get advance written permission from the Landl~rd for any changes in the use to which the space is put. There shall be no retail sales from this space. PART III -REPAIRS AND ALTERATI ON S 1. Condi t ion at Start of Term. The premises are ready for occupation except that Landlor d will provide general cleanup and grad ing of the premises prior to occupancy. 2. Fixtures. All trade fixtures, signs, e quipment, shelving, A appl ! 1nces, etc., installed by the Tenant remain pro perty of. the Tenant, nu matter how they are attached. However, the Tenant agrees to repair any damage caused by installation or removal of fixtures. 3. Alterations. The Tenant has the right to make workmanlike alterations to the premises, at its own expense subject to approval, in writing, by the Landlord. 4. Repairs. The Landlord is responsible for repairs to the utility lines up to the interior meter. Tenant is responsible for structural and nonstructural repai.s, repairs to heat i ng, ventilation and air conditioning systems, plumbing system once beyond the interior meter and replacement of glass or other greenhouse exterior. PART IV -MISCELLANEOUS PROVISIONS 1. Insurance. Tenant will maintain a minimum property damage ($1,000 deductible) liability and casualty insurance policy of $1,000,000. 2. Indemnification. Te~ant shall indemnify and hold harmless the City of Englewoo1, its officers, employees, insurers, - and self-insurance pool, from . and against all liability, claims, and demand., on account of injury, loss, or damage, of any kind whatsoever, which may arise out of or are in any -2 - 3. 4. 5. 6. 7. 8. Date manner connected with thi ■ Lee ■e. If ■uch injury, 1011, or damage is or i ■ claimod to be caused in whole or in part by the act, omi ■■ion, or other fault of Tenant, or any partner, officer or employee of Tenant, Tenant agrees to inve ■tigate, handle, re ■pond to, and to provide defen ■e for any ■uch liability, claim ■ or demands at the sole expense of Tenant and agrees to bear all other coats and expense ■ related thereto, including court coats and reasonable attorney fees. Tenant shall on the first day of October 1989 deposit wit1 the City the sum of Twelve Hu ndred Dollars ($1200), then, on the first Jay of e a ch month thereafter, for the term of t.he lease, shall deposit Six Hundrad Doll~rs ($600) with the City. The accumulation of funds sha:tl not exceed seventy--eight Hundred Dollars ($7 .900 ) and will be refunded to Lessee upon termination of the l~ase if there is no default on the part of Lessee. If Tenant defaults, Landlord can keep the utility deposit, if required, and any crops in process in the greenhouse. Tenant will be liable for returning the premises to their original condltion. Tenant is qualified to do business i n the State of ColoraJo. This lease will be governed by the laws of the State of Colorado. If Landlord and .Tenant become adversaries in any proceeding involving this lease or the Premise s, the losing party agrees to reimburse the winner for attorney's fees. Any and all amendments and modifications must be written and signed by both parties. CITY OF ENGLEWOOD, COLORADO a municipal corporation, Landlord DESIGN FLORAL SCHOOL, INC. Trade Name of EQUESTRIAN SERVICES, INC., a Colorado By Susan Van Dyke, Mayor ::r~,q ;Ji I Attest: Title ~£WM Patricia H. Crow, City Clerk -3 -