HomeMy WebLinkAboutOrdinance-1974-0156 - Lease Option to Purchase 10900 W. 44th AveINTRODUCED BY ALDERMAN DONALDSON
ORDINANCE NO. 156
Series of 1974
TITLE: AN ORDINANCE AUTHORIZING AND DIRECTING EXECUTION OF A
LEASE-PURCHASE AGREEMENT BY THE CITY OF WHEAT RIDGE,
COLORADO, AS LESSEE OF CERTAIN PROPERTY AT 10900 WEST
44th AVENUE, WHEAT RIDGE, COLORADO, FROM KENNETH H.
GANTENBEIN FOR A TERM OF TWELVE (12) YEARS COMMENCING
SEPTEMBER 1, 1974, ON THE FOLLOWING TERMS: FORTY-FIVE
THOUSAND DOLLARS ($45,000.00) CASH PAYABLE UPON DATE OF
OCCUPANCY, AND FOURTEEN THOUSAND EIGHT HUNDRED EIGHTY
DOLLARS AND SIXTY CENTS ($14,880.60) FOR EACH YEAR THERE-
AFTER FOR A MAXIMUM OF TWELVE (12) YEARS, PAYABLE MONTHLY;
PLUS THE COSTS OF ALL TAXES AND ASSESSMENTS, OCCUPANCY
COSTS, MAINTENANCE AND REPAIRS AND INSURANCE AGAINST FIRE
AND CASUALTY RISKS, TOGETHER WITH AN OPTION IN THE CITY
TO PURCHASE THE PROPERTY AT ANY TIME DURING THE TERM OF
THE LEASE IN ACCORDANCE WITH THE LEASE-PURCHASE AGREEMENT.
WHEREAS, the buildings now occupied by the City of Wheat
Ridge are inadequate; and
WHEREAS, a building located on certain property at 10900
West 44th Avenue, in the City of Wheat Ridge, contains adequate space
and facilities for the Police Department and other office requirements
of the City of Wheat Ridge; and
WHEREAS, Kenneth H. Gantenbein, the owner of said building,
has offered to lease such building and property to the City of Wheat
Ridge; and
WHEREAS, the leasing of said building and improvements is
necessary to enable some of the officers and employees of the City
of Wheat Ridge to carry out their official duties and will improve
the general welfare of the Citizens of the City of Wheat Ridge;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF WHEAT RIDGE, COLORADO:
Section 1. Lease-Purchase Agreement. The execution of the
following Lease-Purchase Agreement by the City of Wheat Ridge, as
Lessee, is hereby approved and ordered executed:
ORDINANCE NO. 156 - Continued
LEASE-PURCHASE AGREEMENT
THIS AGREEMENT Made and entered into this 1Qth day of
August , 1974, by and between KENNETH H. GANTENBEIN, herein-
after referred to as "Lessor", and THE CITY OF WHEAT RIDGE, COLORADO,
a Municipal Corporation, hereinafter referred to as "Lessee":
WITNESSETH:
1. In consideration of rents, covenants, conditions and
agreements hereinafter mentioned, Lessor has let and demised and does
hereby let and demise unto Lessee those certain premises, together with
all improvements thereon, situate in the County of Jefferson, State of
Colorado, to-wit:
Lot No. 1, Block No. 2, Owens Park Subdivision,
numbered as 10900 West 44th Avenue, Wheat Ridge,
Colorado.
2. Lessor agrees to secure a loan at nine and three-fourths
percent (9 3/4%) per annum for a term of twelve (12) years in the prin-
cipal amount of One Hundred Five Thousand Dollars ($105,000.00) providing
for monthly principal and interest payments, and further agrees to make
said payments promptly when due. Lessor agrees that at any time during
the lease period he will transfer clear title to the property, together
with improvements, to the Lessee upon payment by the Lessee of an amount
equal to the outstanding principal balance of such loan at that time.
Lessor further agrees to deposit a Deed to the premises with Security
Title Guaranty Co., 1597 Wadsworth Boulevard, Lakewood, Colorado 80215,
escrow agent, at the time of closing of the loan.
3. At lessee's sole option, Lessee may exercise a prepayment
privilege by paying twenty percent (20%) of the original principal
balance each year during any of the first five years to Lessor in addi-
tion to the annual lease payment to avoid a prepayment penalty. After
the completion of the first five years, a prepayment penalty shall be
payable in the amount of five percent (5%) of the then unpaid principal
balance. Lessor agrees to make any prepayments made by Lessee promptly
and in full on the Lessor's loan.
4. Lessee to have and to hold said premises and property,
together with all improvements thereon, from 8:00 o'clock A.M. on the
let day of September, A.D., 1974, and ending on the 1st day of September,
A.D., 1986, unless the purchase option is exercised sooner as herein
provided, at and for a rental for the full term aforesaid of One Hundred
and Seventy-eight Thousand Five Hundred Sixty-seven Dollars and Twenty
Cents ($1781567.20), payable in monthly installments as hereinafter
provided.
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ORDINANCE NO. 156 - Continued
5. The sum of One Thousand and Two
Five Cents ($1,240.05) per month shall be due
the aforesaid escrow agent on or before 12:00
day of each calendar month during the term of
ever, that the first payment only shall be Fo
($45,000.00) due and payable upon occupancy.
Hundred Forty Dollars and
and payable by Lessee to
o'clock noon on the first
this lease; provided, how-
rty-five Thousand Dollars
6. The above described property is leased to Lessee for the
sole and exclusive purposes of City offices and related activities.
7. Lessor agrees that at the execution of these presents the
premises are in good order and repair, including heating and cooling
systems, roof, structure, sewer connections, plumbing, wiring and glass,
and site improvements; and if upon first occupation of the premises under
this lease it shall be found that all or any part of the premises are
not in good order and repair, or that the heating and cooling systems
shall require repair, or the sewer connections, plumbing, wiring or
glass, and site improvements are not satisfactory to Lessee, such
repairs shall be made by the Lessor at his sole cost and expense. Lessor
agrees to all requirements for completion of the building as specified
by the Chief Building Inspector of the City of Wheat Ridge.
8. All repairs and maintenance costs shall be at the Lessee's
expense.
9. At the end of the full term of this lease, Lessor agrees
to convey by Warranty Deed a free and clear title to the premises,
including all improvements, to the City of Wheat Ridge without further
payment by the Lessee.
10. All installations, improvements and fixtures installed by
Lessee shall remain the property of Lessee, and may be removed by Lessee
at or before the termination or expiration of this lease; provided,
however, that if such removal shall damage the premises, the same shall
be restored or repaired by Lessee at Lessee's expense. Lessor shall
have the right to require Lessee to remove any fixtures or improvements
installed by the Lessee at the termination of the lease, at Lessee's
cost.
11. During the term of this lease, Lessee shall pay all taxes
that may be levied or assessed against the leased property and improve-
ments and payment shall be made by said Lessee of the said taxes within
thirty (30) days after appropriate billing submitted by Lessor,
accompanied by a copy of the tax statement. Partial year's taxes will
be prorated and the year in which the lease is terminated shall be pro-
rated on the basis of the prior year's taxes. Provided, however,
Lessee, in further consideration of the terms, provisions, and conditions
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ORDINANCE NO. 156 - Continued
hereof, agrees to exercise its best efforts to cause the real estate
taxes attributable to the leased premises to be waived, in conformance
with Chapter 139, Article 61, C.R.S., 1963.
12. Lessee shall, at its expense, maintain public liability
insurance policy with personal injury limits of not less than One Hundred
Thousand Dollars ($100,000.00) for one person and Three Hundred Thousand
Dollars ($300,000.00) for any one accident, and Twenty-five Thousand
Dollars ($25,000.00) for property damage, and Lessee shall furnish
Lessor a certificate of such insurance and keep it in force during the
period of this lease. Lessee shall also pay the insurance premium for
adequate fire and extended coverage insurance on the improvements located
upon the leased premises, and shall also furnish Lessor a certificate
of such insurance.
13. Should default be made in any payment of any installment
of rent, such installment shall bear interest at the rate of eight
percent (8%) per annum from maturity until actually paid. In like
manner, all other obligations, benefits and monies which may become
due to Lessor from Lessee as a result of advances which may be made by
Lessor, on taxes, insurance, or for any other expenditures required to
be made by Lessee, for the benefit of Lessor, which is paid by Lessor,
shall bear interest at the rate of eight percent (8%) per annum from
the due date until paid.
14. Should the building located on the leased premises be
totally or substantially destroyed by fire, explosion, tornado, or act
of God or by necessity for major repair, so that such leased premises
shall be wholly untenantable and unfit for the conduct of Lessee's
business, then Lessor shall permit the Lessee to rebuild the building
to Lessee's specifications and design. If, however, such damage is
only partial and Lessee's business is only temporarily closed or incon-
venienced, then Lessee shall be allowed to promptly repair such damages
and restore such improvements to substantially the same condition as
before such damage.
15. It is expressly agreed and understood that in the event
of Lessee's failure to pay any monthly rent herein provided for when
it shall mature and become due and payable, or shall fail to do and per-
form any other act, obligation or thing herein agreed by Lessee to be
done and performed by it, then Lessor may, at his option, declare this
lease terminated, and upon giving notice to Lessee of such election,
as herein provided, this lease shall thereupon cease and terminate as
fully, finally and completely as if it had expired by lapse of time,
and Lessee shall thereupon surrender and deliver said premises to
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ORDINANCE NO. 156 - Continued
Lessor, and all rights and claims of Lessee in and to the use and enjoy-
ment of such premises shall cease; provided, however, no such forfeiture
shall be declared until Lessee shall have been given written notice by
Lessor of the default claimed by Lessor, and Lessee small fail within
thirty (30) days after the mailing of such notice to remedy such default.
In case of such default which may continue for thirty (30)
days as provided herein, Lessor may, at his option, instead of can-
celling this lease, take possession of said premises and re-let the
same for the best price obtainable, and Lessee shall be liable to Lessor
for the amount of rental payable hereunder for the remainder of such
term, plus the amount of any other charges or costs which Lessor herein
may contract and agree to pay, do and perform, less the net amount
received by Lessor on account of such re-letting, such net amount to be
based upon the actual costs and expenses, including the expense of
renovating, repairing, advertising and attorney's fees, incurred in
connection with such re-letting of said property.
16. No acceptance of rent by Lessor or delay in enforcing any
obligation shall be construed as a waiver of any default then, thereto-
fore, or thereafter existing in the performance of any other obligation
undertaken by Lessee. No forfeiture of this lease shall release Lessee
from responsibility or liability to Lessor for rents theretofore due and
unpaid, nor from the performance of any of said covenants, agreements or
stipulations herein by Lessee undertaken to be kept and performed which
is a liability at the time of said default.
17. Lessee may sublet or assign this lease at any time.
1a. Lessor covenants that he is well seized of said premises
and has good right to lease the same and warrants and agrees to defend
the title thereto, and to reimburse and hold Lessee harmless from all
damages and expenses which Lessee may suffer by reason of any restriction,
encumbrance or defect in such title. At the time of execution and
delivery of this lease, Lessor shall, at his sole cost and expense,
deliver to the Lessee, at Lessor's option, a title insurance policy
in favor of Lessee showing that Lessor is the owner of the premises,
free and clear of all liens and encumbrances, save and except the liens
hereinabove described, or an attorney's title opinion addressed to the
City of Wheat Ridge, prepared from abstracts certified to the date of
such delivery, showing title in Lessor.
19. Any notice which may be required to be given from either
of the parties to the other shall be in writing. Said notice may be
served personally or may be deemed duly served by Lessor upon Lessee, if
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ORDINANCE NO. 156 - Continued
mailed by regular mail, addressed to Lessee at Box 610, Wheat Ridge,
Colorado 80033, and by Lessee upon Lessor, if mailed by regular mail,
addressed to Lessor's escrow agent located at 1597 Wadsworth Boulevard,
Lakewood, Colorado 80215, or at such other address as either of the
parties may hereafter fix by writing to the other. Service shall be
deemed completed as of the day next following the day of mailing such
notice.
20. No assent, expressed or implied, to any breach of any
one or more of the covenants shall be deemed or be taken to be a waiver
of any succeeding breach and it is further expressly understood and
agreed that all covenants and agreements in this lease contained shall
extend to and be binding upon the heirs, legal representatives,
executors, administrators, successors and assigns of the respective
parties hereto.
EXECUTED this day of , 1974.
KENNETH H. GANTENBEIN, Lessor
ATTEST:
Elise Brougham, City Clerk
APPROVED AS TO FORM:
Kenneth H. Gentenbein, Lessor
THE CITY OF WHEAT RIDGE, Lessee
By ~H/,/3 &&~, .A,,
Paul Z. Abramson, P .D., Mayor
William E. McCarthy, City Attorney
STATE OF COLORADO )
ss.
COUNTY OF JEFFERSON )
The foregoing instrument was acknowledged before me this
day of , 1974, by KENNETH H. GANTENBEIN,
Lessor.
WITNESS my hand and official seal.
STATE OF COLORADO )
Notary Public
ss.
COUNTY OF JEFFERSON )
The foregoing instrument was acknowledged before me this
day of , 1974, by Dr. PAUL B. ABRAMSON, MAYOR,
and ELISE BROUGHAM, CITY CLERK, of the CITY OF WHEAT RIDGE, a Municipal
Corporation, Lessee.
WITNESS my hand and official seal.
Notary Public
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ORDINANCE NO. 156 - Continued
Section 2. Authority to Execute and Perform. The Mayor and
the City Clerk of the City of Wheat Ridge are hereby authorized and
directed on behalf of the City of Wheat Ridge to execute and deliver
the lease set out above in Section 1 of this Ordinance.
Section 3. Emergency Clause. The provisions of this Ordinance
are necessary to the immediate preservation of the welfare of the Citi-
zens of the City of Wheat Ridge in that current inadequate office space
for City officials and employees distracts from job performance and
militates against optimum and effective functioning.
Section 4. Effective Date. This Ordinance shall take Jf13Ct
and be in force five (5) days after final publication following f/d to
passage provided it shall have been passed by an affirmative vote
three-fourths (3/4) of the City Council; otherwise, it shall take $
effect thirty (30) days after publication following final passage
INTRODUCED, READ, ADOPTED AND ORDERED PUBLISHED AND POSTED ,
on first reading by a vote of 4 to 2 this 13th r„iwv'
day of June , A.D. 1974.
READ, ADOPTED AND ORDERED PUBLISHED AND POSTED on second and
final reading by a vote of 5 to 1 this 2nd day
of July , A.D. 1974.
'Paul Abramson, Ph
Mayor
ATTEST:
E e"0rougham, ity C rk
~i~e r lhl, N1~ E--~ IN
~o {~H.('fAL. LS=D? I~I(~",,
-7-
CERTIFICATION Ur PUBLICATION AND P05TING
I, Elise Brougham, hereby certify that Ordinance No. 156 was duly
published in the Wheat Ridge Sentinel on the 20th day of June, 1974,
and posted by me following first reading on the 21st day of June,
1974, at the following locations within the City of Wheat Ridge:
Wheat Ridge Post Office
Wheat Ridge Branch Library
Columbia Heights School
Prospect Valley Fire Department
Wheat Ridge City Office
Wheat Ridge Council Chambers
Kullerstrand Elementary School
I, Elise Brougham, hereby certify that Ordinance No. 156 was duly
published in the Wheat Ridge Sentinel on the 11th day of July, 1974
and posted by myself following second reading on the 12th day of
July, 1974, at the above listed locations within the City of Wheat
Ridge.
E ise Brougha , City--Clerk