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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. -2- 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 -3- 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 -4- 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 -5- 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 -6- 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