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O-2009-35
AN ORDINANCE
AUTHORIZING THE CITY OF LAKEWOOD TO ACQUIRE CERTAIN REAL PROPERTY (INCLUDING A FACILITY LOCATED THEREON AT 870 PARFET STREET, LAKEWOOD, COLORADO) FROM THE SCHMIDT FAMILY L.L.L.P. (A COLORADO LIMITED LIABILITY LIMITED PARTNERSHIP); AND TRANSFERRING TITLE OF THE PROPERTY TO MUNICIPAL CAPITAL MARKETS GROUP, INC., AND ENTERING INTO AN ANNUALLY RENEWABLE LEASE PURCHASE AGREEMENT BETWEEN MUNICIPAL CAPITAL MARKETS GROUP, INC., AS LESSOR, AND THE CITY, AS LESSEE, FOR THE PURPOSE OF PUBLIC SAFETY USE AND THE EXPANSION OF THE POLICE ACADEMY TO A REGIONAL TRAINING FACILITY; AUTHORIZING THE EXECUTION OF A PURCHASE AND SALE AGREEMENT, A FACILITY LEASE PURCHASE AGREEMENT AND DOCUMENTS RELATED THERETO; FURTHER AUTHORIZING THE CITY MANAGER TO ENTER INTO A PURCHASE AND SALE AGREEMENT FOR THE PROPERTY LOCATED AT 1955 S. KIPLING STREET TO OFFSET THE COST TO EQUIP THE FACILITY SPACE AS A REGIONAL TRAINING FACILITY; AUTHORIZING A SUPPLEMENTAL BUDGET APPROPRIATION OF $2,330,000; AUTHORIZING CONVEYANCE OF A NON-EXCLUSIVE EASEMENT TO W. HERB L.L.C. FOR INGRESS AND EGRESS ACROSS PROPERTY OWNED BY THE CITY, LOCATED AT 1050 QUAIL STREET 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 consummate an agreement to purchase real property and the Facility thereon from The Schmidt Family L.L.L.P., (Seller), and to transfer said real property and Facility to Municipal Capital Markets Group, Inc.; 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 real property and the Facility from the Seller, transfer the same to Municipal Capital Markets Group, Inc; and
WHEREAS, the City desires to lease the real property and Facility for a term of twenty (20) years at a rate not to exceed 4.49% through a Lease Purchase Agreement awarded to Municipal Capital Markets Group, Inc., as determined by a competitive bidding process with the quoted terms and conditions most favorable to the City (“Leasing Company”); and
WHEREAS, under the Lease Purchase Agreement between Municipal Capital Markets Group, Inc., as lessor, and the City, as lessee, the City will purchase land and a building for Public Safety use and expansion of the police academy located at 870 Parfet Street, Lakewood, Colorado; and
WHEREAS, the Council has determined that it is in the best interests of the City to sell the land and building located at 1955 S. Kipling Street in accordance with Section 14.3 of the Lakewood City Charter to offset the costs required for the expansion of the police academy to be relocated at 870 Parfet Street, Lakewood, Colorado; and
WHEREAS, the sale of the property located at 1955 S. Kipling Street is pending a release from the 2000/2006A Certificate of Participation owned by the Lakewood Public Building Authority in accordance with the Lakewood Public Building Authority’s First Amendment to Lease Purchase and Sublease Agreement dated April 1, 2004; and
WHEREAS, the City Council shall make a supplemental budget appropriation of revenues and expenditures in the Capital Improvement Fund for the acquisition and equipping of the real property and Facility in the amount of $2,330,000 in accordance with Section 12.8 of the Lakewood City Charter; and
WHEREAS, W. Herb L.L.C., which owns real property adjacent to 870 Parfet Street, has requested that the City of Lakewood convey a non-exclusive access easement for ingress and egress across a portion of Lot 8, Park West Filing No. 2 (AKA 1050 Quail Street); and
WHEREAS, W. Herb L.L.C. has requested to enter into a Revocable License Agreement with the City of Lakewood to utilize a portion of Lot 8, Park West Filing No. 2 (AKA 1050 Quail Street) for ingress and egress.
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 real property and Facility, the transfer of the same to Municipal Capital Markets Group, Inc , and leasing by the City of the Facility 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 existing under its 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 that it is in the best interests of the City and its residents to acquire the real property and Facility and to enter into the lease/purchase financing with Municipal Capital Markets Group, Inc., the Leasing Company. Accordingly, the Council hereby authorizes (1) the acquisition by the City of the real property and Facility from the Seller; (2) the transfer of the real property and Facility to the Leasing Company ; and (3) the leasing back of the real property and Facility by the City from the Leasing Company under a Lease Purchase Agreement for an initial term of up to one (1) year with up to nineteen (19) annual renewals.
The Council hereby finds and determines that it is in the best interests of the City to sell the land and building located at 1955 S. Kipling Street to offset the costs required for the expansion of the police academy to be relocated at 870 Parfet Street, Lakewood, Colorado.
SECTION 3. Lease Purchase Agreement Provisions. The provisions of the Lease Purchase Agreement from the Leasing Company to the City shall include:
(1) the Lease Purchase Agreement shall be renewable annually each City fiscal year, the 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 one year from the date of execution, and the maximum number of renewal terms of the Lease Purchase Agreement shall not exceed nineteen (19) additional renewal terms;
(2) the total aggregate base rentals principal portion payable under the Lease Purchase Agreement shall not exceed $2,330,000;
(3) the base rentals interest portion payable under the Lease Purchase Agreement shall be determined using a per annum interest rate not to exceed 4.49%; and
(4) the base rentals (including both the base rentals principal portion and the base rentals interest portion) payable under the Lease Purchase Agreement shall be payable in annual base rental payments not to exceed $178,966.24 for each such annual payment.
(5) the City shall have the option to pay off the full remaining amount of the lease, at any time, with no financial penalties.
SECTION 4. Preparation of Documents; Execution of Documents. Ryley Carlock & Applewhite are hereby authorized and directed to prepare, or direct the preparation of, the Purchase and Sale Agreement and associated documents conveying the real property and Facility to Municipal Capital Markets Group, Inc. Kamlet Reichert, LLP are hereby authorized and directed to prepare, or direct the preparation of, the Facility 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 Purchase and Sale Agreement, the Facility Lease and the Lease Purchase Agreement substantially in accordance with the terms set forth in this ordinance. By his execution thereof, the City Manager shall have determined that the Facility Lease and the Lease Purchase Agreement are with the bidder with the quoted terms and conditions most favorable to the City as set forth in such documents.
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 any of the documents authorized hereunder 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.
SECTION 7. Supplemental Budget Appropriation. In accordance with Section 12.8 of the Lakewood City Charter, the Council hereby appropriates $2,330,000 in the Capital Improvement Fund in 2009 for the acquisition and equipping of the Facility.
SECTION 8. Access Easement. The City Manager is hereby authorized to execute and the City Clerk to attest an access easement, in form approved by the City Attorney, to W. Herb L.L.C. across land described in Exhibit “A” attached hereto and made a part thereof, for ingress and egress.
SECTION 9. Revocable License Agreement. The City Manager is hereby authorized to execute and the City Clerk to attest a Revocable License Agreement, in form approved by the City Attorney, to W. Herb L.L.C. across land described in Exhibit “B” attached hereto and made a part thereof, for ingress and egress.
SECTION 10. 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 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 11. 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 12. Recordation and Authentication. After its passage, this ordinance shall be authenticated by the signature of the Mayor and attested by the City Clerk and recorded in the records of the City kept for that purpose.
SECTION 13. Emergency. This ordinance is necessary for the immediate preservation of the City of Lakewood’s peace, health and safety. The emergency provision is necessary in order that the City complete the real property transactions set forth herein within the time allotted by the Purchase and Sale Agreement and take advantage of favorable financing terms and conditions.
SECTION 14. 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 July 2009; published by title in the Denver Post and in full on the City of Lakewood's website, www.lakewood.org., on the 16th day of July 2009; set for public hearing on the 27th day of July 2009; read, finally passed and adopted by the City Council on the 27th day of July, 2009, and signed, and approved by the Mayor on the 28th day of July, 2009.
Bob Murphy, Mayor
ATTEST:
Margy Greer, City Clerk
APPROVED AS TO FORM:
Timothy P. Cox, City Attorney
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