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O-2004-50
AN ORDINANCE
AUTHORIZING THE CITY OF LAKEWOOD TO ACQUIRE CERTAIN REAL PROPERTY (A CONDOMINIUM UNIT FOR OFFICE SPACE) FROM WEST METRO FIRE PROTECTION DISTRICT, TO LEASE THE CONDOMINIUM UNIT FOR OFFICE SPACE TO CHASE EQUIPMENT LEASING, INC. ("CHASE") UNDER AN OFFICE SPACE LEASE BETWEEN THE CITY, AS LESSOR, AND CHASE, AS LESSEE, AND, IN TURN, LEASING THE CONDOMINIUM UNIT FOR OFFICE SPACE BACK BY ENTERING INTO AN ANNUALLY RENEWABLE LEASE PURCHASE AGREEMENT BETWEEN CHASE, AS LESSOR, AND THE CITY, AS LESSEE; AUTHORIZING THE EXECUTION OF AN OFFICE SPACE LEASE, A LEASE PURCHASE AGREEMENT AND DOCUMENTS RELATED THERETO; AND PROVIDING OTHER MATTERS RELATING THERETO; FURTHER DECLARING AN EMERGENCY.
WHEREAS, the City of Lakewood, Colorado (the "City"), is a municipal corporation duly organized and existing as a home rule city under Article XX of the Colorado Constitution, and under the Charter of the City, and is a political subdivision of the State of Colorado (the "State"); and
WHEREAS, subject to certain exceptions, all legislative powers possessed by the City, conferred by Article XX of the State Constitution, or contained in the Charter, as either has from time to time been amended, or otherwise existing by operation of law, are vested in the City Council of the City (the "Council"); and
WHEREAS, the City is authorized, pursuant to Article XX of the State Constitution and the Charter and its plenary grant of powers as a home rule city, to enter into lease purchase agreements in order to lease and acquire land, buildings, equipment and other real or personal property; and
WHEREAS, the City desires to enter into an agreement to buy and sell property with West Metro Fire Protection District (the "District"), as seller, under which the City will purchase a condominium unit for office space and other rights and interests relating thereto (collectively, the "Office Space") located at 447 South Allison Parkway; and
WHEREAS, the Council has determined and hereby determines that it is necessary and in the best interests of the City and its residents that the City acquire the Office Space from the District, lease for a term of nine (9) years to Chase Equipment Leasing, Inc. ("Chase") the Office Space under an Office Space Lease to be dated its date of execution and delivery (an "Office Space Lease") between the City, as lessor, and Chase, as lessee, and, in turn, lease such Office Space back under an annually renewable Lease Purchase Agreement to be dated its date of execution and delivery (a "Lease Purchase Agreement") between Chase, as lessor, and the City, as lessee, all such that the City may use the Office Space in connection with its governmental and proprietary purposes; and
WHEREAS, the Office Space also is referred to herein as the "Leased Property."
NOW THEREFORE, BE IT ORDAINED by the City Council of the City of Lakewood, Colorado, that:
SECTION 1. Ratification of Actions. All action heretofore taken, not inconsistent
with the provisions of this ordinance, by the City or its officers, directed
toward the acquisition by the City of the Office Space, the leasing by the City
of the Office Space and the leasing back of the Leased Property by the City
from Chase are hereby ratified, approved and confirmed.
SECTION 2. Findings; Authorizations. This ordinance is adopted pursuant to
the City's powers as a home rule city organized and operating under the Charter
and Article XX of the State Constitution; and the City hereby determines that
each and every matter and thing as to which provision is made herein is necessary
in order to carry out and to effect the purposes hereof.
The Council hereby finds and determines, pursuant to the City's home rule powers,
that the following actions are necessary, convenient, and in furtherance of
the governmental purposes of the City and are in the best interests of the City
and its residents:
(1) the acquisition by the City of the Office Space from the District;
(2) the lease by the City to Chase of the Office Space under an Office Space
Lease having a term of nine (9) years; and
(3) the entering into of a Lease Purchase Agreement under which the City will
lease back the Leased Property from Chase.
The Council hereby authorizes (1) the acquisition by the City of the Office
Space from the District; (2) the lease by the City to Chase of the Office Space
under an Office Space Lease having a term of nine (9) years; and (3) the leasing
back of the Leased Property by the City from Chase under a Lease Purchase Agreement.
SECTION 3. Lease Purchase Agreement Provisions. The provisions of the Lease
Purchase Agreement from Chase to the City shall be as follows:
(1) the Lease Purchase Agreement shall be renewable annually within each City
fiscal year, the Base Rentals due under the Lease Purchase Agreement shall be
subject to appropriation by the City, the initial term of the Lease Purchase
Agreement shall commence on its date of execution and delivery by the City,
as lessee, and shall end on December 31, 2005, and the maximum number of renewal
terms of the Lease Purchase Agreement shall not exceed six (6) additional renewal
terms;
(2) the total aggregate Base Rentals Principal Portion payable under the Lease
Purchase Agreement shall not exceed $700,000;
(3) the Base Rentals Interest Portion of the Base Rentals payable under the
Lease Purchase Agreement shall be determined using a per annum interest rate
not to exceed 3.73%; and
(4) the Base Rentals (both the Base Rentals Principal Portion and the Base Rentals Interest Portion) payable under the Lease Purchase Agreement shall be payable in six annual Base Rentals payments in the City's fiscal years 2006 through 2011 not to exceed $132,362.00 for each such annual payment.
SECTION 4. Preparation of Documents; Execution of Documents. The City Attorney is hereby authorized and directed to prepare, or direct the preparation of, the Office Space Lease and the Lease Purchase Agreement (consistent with the terms set forth in Section 3 above) and all additional certificates or documents and to perform all other acts deemed necessary or appropriate in order to implement and carry out the transactions and other matters authorized by this ordinance. The City Manager is hereby authorized and directed to execute and deliver, and the City Clerk is hereby authorized and directed to affix the seal of the City to, and attest, the Office Space Lease and the Lease Purchase Agreement.
SECTION 5. No General Obligation or Other Indebtedness. The obligation of the City to make rental payments under the Lease Purchase Agreement is subject to annual appropriation by the Council and constitutes an undertaking of the City to make current expenditures. No provision of this ordinance or the Lease Purchase Agreement shall be construed as constituting or giving rise to a general obligation or other indebtedness or a multiple fiscal year direct or indirect debt or other financial obligation of the City within the meaning of any home rule, constitutional or statutory debt limitation nor a mandatory charge or requirement against the City in any ensuing fiscal year beyond the current fiscal year. The City may choose to not renew, and thereby terminate its obligations under the Lease Purchase Agreement on an annual basis.
SECTION 6. Reasonable Rentals. The Council hereby determines and declares that the Base Rentals, as limited by Section 3 above, to be due under the Lease Purchase Agreement do not exceed a reasonable amount so as to place the City under an economic compulsion to renew and therefore not to terminate the Lease Purchase Agreement or to exercise its option to purchase the Leased Property, pursuant to the Lease Purchase Agreement.
SECTION 7. Additional Documents; Delegated Powers. The City Clerk is hereby authorized and directed to attest all signatures and acts of any official of the City in connection with the matters authorized by this ordinance. The City Manager, the City Clerk and the City Attorney and other officials and employees of the City are hereby authorized to execute and deliver for and on behalf of the City any and all additional certificates, documents and other papers and to perform all other acts that they may deem necessary or appropriate in order to implement and carry out the transactions and other matters authorized by this ordinance.
SECTION 8. Severability. If any section, paragraph, clause or provision of this ordinance shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of such section, paragraph, clause or provision shall not affect any of the remaining provisions of this ordinance.
SECTION 9. Recordation and Authentication. The ordinance shall be recorded after its passage in the ordinance record of the City, kept for that purpose, and authenticated by the signature of the Mayor and attested and countersigned by the City Clerk.
SECTION 10. Emergency. This ordinance is necessary for the immediate preservation
of the City of Lakewood's peace, health and safety in order to close this proposed
transaction under the interest rate offered by Chase as provided in Section
3.
SECTION 11. Effective Date. This ordinance shall take effect immediately upon
signature of the Mayor.
I hereby attest and certify that the within and foregoing ordinance was introduced and read on first reading at a regular meeting of the Lakewood City Council on the 13th day of December, 2004; published in full in the Lakewood Sentinel on the 16th day of December, 2004; set for public hearing on the 10th day of January, 2005; read, finally passed and adopted by the City Council on the 10th day of January 2005; and, signed and approved by the Mayor on the 11th day of January, 2005.
Stephen A. Burkholder, Mayor
ATTEST:
Margy Greer, City Clerk
Approved as to form:
City Attorney
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