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TC Resolution 19-11 Approving a Lease Agreement With Vail Tenure, LLC for Worker Housing at the 351 Benchmark BuildingAvon COLORADO RESOLUTION 19-11 APPROVING A LEASE AGREEMENT WITH VAIL TENURE, LLC FOR WORKER HOUSING AT THE 351 BENCHMARK BUILDING WHEREAS, the Town of Avon, Colorado (the "Town") is a home rule municipality and political subdivision of the State of Colorado (the "State") organized and existing under a home rule charter (the "Charter") pursuant to Article XX of the Constitution of the State; and WHEREAS, Vail Tenure, LLC, ("Lessee") has proposed to lease from the Town, property owned by the Town located at 351 Benchmark Road in Avon, Colorado, also known as the old fire station; and WHEREAS, Lessee has approved the ten -ns and conditions of the attached Lease Agreement; and WHEREAS, the Avon Town Council has reviewed the attached Lease Agreement and finds that the terms and conditions as defined in the Lease Agreement are reasonable and in the best interests of the Town; and THEREFORE, BE IT RESOLVED by the Avon Town Council that the Lease Agreement between the Town and Vail Tenure, LLC, as set forth in Exhibit A, is hereby approved; and BE IT FURTHER RESOLVED by the Avon Town Council that the Town Manager is hereby authorized to execute the attached Lease Agreement on behalf of the Town and that Town staff are authorized to execute all documents necessary, except those set forth above, to complete the Lease Agreement. ADOPTED May 14, 2019 by the AVON TOWN COUNCIL 5OF AVp By: Attest: Sarah Smith Hymes, M Ior Brenda Torres, Town Clerk .. OOLORP� A ,von COLORADO LEASE AGREEMENT FOR WORKER HOUSING AT THE 351 BENCHMARK BUILDING, AVON, CO 81620 THIS LEASE AGREEMENT ("Lease") is made and entered into as of May 7, 2019 by and between the Town of Avon, a Colorado home rule municipality ("Lessor") and Vail Tenure, LLC, ("Lessee") (collectively, the "Parties"), for the residential occupancy within a defined portion of the 351 Benchmark Building, located at 351 Benchmark Road, Avon, Colorado 81620 (the "351 Benchmark Building"), upon the terms and conditions set forth in this Lease. 1. Premises. In consideration for payment of the Monthly Lease Payment and the performance of the promises by Lessee set forth below, the Lessor leases to Lessee a portion of the 351 Benchmark Building as described in Exhibit A: Premises ("Premises"). The Lessee shall have only limited access to the Premises as defined in Exhibit A, with no access to other portions of the 351 Benchmark Building, including but not limited to the garage bays and eastern office spaces. Lessee stipulates, represents and warrants that Lessee has examined the Premises, and that the Premises is at the time of this Lease in good order, repair, and in a safe, clean and tenantable condition. Lessee acknowledges receipt of October 31, 2017 letter from the Eagle River Fire Protection District to the Town of Avon concerning the recommendations. 2. Term. Lessor leases to Lessee and Lessee leases from Lessor the Premises together with any and all appurtenances thereto, for a term of one (1) year ("Term"), such Term beginning at 8 a.m. on May 7, 2019, and ending at 8 a.m. on May 6, 2020. 3. Lease Payment. The Lessee shall pay to the Lessor rent at a total of FIFTY-TWO THOUSAND FIVE HUNDRED DOLLARS ($52,500.00) which shall be payable in the following monthly payment amounts ("Monthly Lease Payment"): three thousand dollars ($3,000.00) for the months of May through October, four thousand five hundred dollars ($4,500.00) for the month of November, and ($6,000.00) for the months of December through April. The Monthly Lease Payment shall be due and payable on the first day of each month commencing on May 7, 2019 and running through April 1, 2020. Payment shall be tendered at the Avon Town Hall, 100 Mikaela Way, Avon, CO 81620, or may be mailed or paid through direct deposit to Town of Avon, P.O. 975, Avon, CO 81620, attention Preston Neill, Deputy Town Manager. 4. Late Payment, Interest. Any Monthly Lease Payment which is not paid prior to or on the date it is due shall be subject to a penalty of Three Hundred Dollars ($300.00) and the delinquent Monthly Lease Payment and penalty shall thereafter bear interest at the rate of eighteen percent (18%) per annum, compounded monthly, from the due date therefor until such sum, with all interest accrued thereon, has been paid in full. 5. Security Deposit. The Lessee shall also pay to Lessor a deposit of Two Thousand Dollars ($2,000.00) ("Security Deposit"). The Security Deposit shall be due and payable upon signing this Page 1 of 8 315 Benchmark Lease Agreement w/ Vail Tenure, LLC May 14, 2019 Lease and before taking possession of the Premises. The Security Deposit shall be returned to the Lessee within thirty (30) days following the expiration or termination of this Lease, less the cost of any and all repairs or other maintenance performed by the Lessor, as required, to return the Premises to the condition it was in prior to the commencement date of this Lease. 6. Utility, Operation and On-going Maintenance Expenses. Lessee shall pay for water and sewer service, electric, trash, telephone, and internet ("Utilities") during the Term of this Lease. Lessee will contact any and all utility providers to arrange for transfer service to Lessee's name within one (1) week of the commencement of the Lease Term. Lessee shall be responsible for cleaning the Premises. Lessor shall pay for natural gas service to the building, maintain adjacent snow removal, and landscaping maintenance activities. 7. Use; Maximum Occupancy; Maximum Rental Rates for Sub -Leases. Lessee acknowledges and agrees that the Premises may only be used for residential purposes by tenants who have full-time employment in Eagle County (defined as working at least 32 hours per week, not including vacation time or holidays recognized in Colorado). The Lessee agrees that not more than twenty-five (25) occupants may reside on the Premises at any time. Individual occupants may not be charged more than six hundred dollars ($600.00) per month for a single bedroom, plus an equal share of utilities. 8. Assignment and Sub -Leasing. Lessee shall not in any manner transfer or assign this Lease without the prior written consent of the Lessor and any attempt to do so without the Lessor's prior written consent shall be null and void and confer no rights on third persons. Notwithstanding the foregoing, Lessee may enter into sub -leases with tenants provided that such sub -leases do not conflict with any term or provision in this Lease. No assignment or sub -lease shall relieve Lessee of Lessee's obligations under this Lease, including but not limited to the obligation to pay the Monthly Lease Payments, Security Deposit, utilities. 9. Alterations and Improvements. Lessee shall make no alterations to the buildings or improvements on the Premises or construct any building or make any other improvements on the Premises without the prior written consent of Lessor. Any and all alterations, changes, and/or improvements built, constructed or placed on the Premises by Lessee shall, unless otherwise provided by written agreement between Lessor and Lessee, be and become the property of Lessor and remain on the Premises at the expiration or earlier termination of this Lease. 10. Hazardous Materials. Lessee shall not keep on the Premises any item of a dangerous, flammable or explosive character that might unreasonably increase the danger of fire or explosion on the Premises or that might be considered hazardous or extra hazardous by any responsible insurance company. 11. Pets. No pets, except licensed service animals, are permitted on the Premises at any time. 12. Maintenance and Repair; Rules. Lessor will, at its sole expense, maintain and repair the Premises and appurtenances in good and sanitary condition during the Term of this Lease and any renewal thereof. This paragraph shall not apply to damage or excessive wear and tear which is caused by negligent acts of Lessee. The Lessee shall contact the Lessee with any notices, concerns or requests Page 2 of 8 315 Benchmark Lease Agreement w/ Vail Tenure, LLC May 14, 2019 related to the Lessor's obligations under this paragraph. 13. Inspection of the Premises. Lessor and Lessor's agents shall have the right at all reasonable times during the Term of this Lease and any renewal thereof to enter the Premises for the purpose of inspecting the Premises and all buildings and improvements thereon and for the purposes of making any repairs, additions or alterations as may be deemed appropriate by Lessor for the preservation of the Premises or the building. In particular, Lessor shall have the right to enter the Premises at reasonable times, including the units, to install a fire suppression system which installation shall be conducted at Lessor's sole discretion. Lessee will assist Lessor with the notification to the tenants of such installation and temporary relocation any tenants to other units on the Premises as necessary for Lessor to complete the installation. Lessor and its agents shall further have the right to exhibit the Premises and to display the usual "for sale", "for rent" or "vacancy" signs on the Premises at any time within forty-five (45) days before the expiration of this Lease. The right of entry shall likewise exist for the purpose of removing placards, signs, fixtures, alterations or additions, which do not conform to this Lease or to any restrictions, rules or regulations affecting the Premises. 14. Damage to Premises. In the event the Premises are destroyed or rendered wholly uninhabitable by fire, storm, earthquake, or other casualty not caused by the negligence of Lessee, this Lease shall terminate from such time except for the purpose of enforcing rights that may have then accrued hereunder. The rental provided for herein shall then be accounted for by and between Lessor and Lessee up to the time of such injury or destruction of the Premises, Lessee paying rentals up to such date and Lessor refunding rentals collected beyond such date. Should a portion of the Premises thereby be rendered uninhabitable, the Lessor shall have the option of either repairing such injured or damaged portion or terminating this Lease. In the event that Lessor exercises its right to repair such uninhabitable portion, the rent shall abate in the proportion that the injured parts bears to the whole Premises, and such part so injured shall be restored by Lessor as speedily as practicable, after which the full rent shall recommence, and the Lease continue according to its terms. 15. Subordination of Lease. This Lease and Lessee's interest hereunder are and shall be subordinate, junior and inferior to any and all mortgages, liens or encumbrances now or hereafter placed on the Premises by Lessor, all advances made under any such mortgages, liens or encumbrances (including, but not limited to, future advances), the interest payable on such mortgages, liens or encumbrances and any and all renewals, extensions or modifications of such mortgages, liens or encumbrances. 16. Lessee's Holdover. If Lessee remains in possession of the Premises with the consent of Lessor after the natural expiration of this Lease, a new tenancy from month-to-month shall be created between Lessor and Lessee which shall be subject to all of the terms and conditions hereof except that rent shall then be due and owing at THREE THOUSAND DOLLARS ($3,000.00) per month and except that such tenancy shall be terminable upon fifteen (15) days written notice served by either party. 17. Surrender of Premises. Upon the expiration of the Term hereof, Lessee shall surrender the Premises in as good a state and condition as it was at the commencement of this Lease, except reasonable wear and damages by the elements to the Premises. Page 3 of 8 315 Benchmark Lease Agreement w/ Vail Tenure, LLC May 14, 2019 18. Quiet Enjoyment. Lessee, upon payment of all of the sums referred to herein as being payable by Lessee and Lessee's performance of all Lessee's agreements contained herein and Lessee's observance of all rules and regulations, shall and may peacefully and quietly have, hold and enjoy said Premises for the Term hereof. 19. Parking. Parking shall be limited to not more than one (1) space per tenant, and parking will be assigned in close proximity to the building. Lessee shall use the supplied Town of Avon Police Department parking passes and have visible at all times. The spaces along the Benchmark Road are shared spaces with other uses in the vicinity including the library. No overnight (12:00 a.m. — 6:00 a.m.) storage of vehicles is permitted along Benchmark Road. 20. Default. If Lessee fails to comply with any of the material provisions of this Lease, other than the covenant to pay rent, or of any present rules and regulations or any that may be hereafter prescribed by Lessor, or materially fails to comply with any duties imposed on Lessee by statute, then Lessor may terminate this Lease no sooner than seven (7) days after delivery of written notice by Lessor specifying the non-compliance and indicating the intention of Lessor to terminate the Lease by reason thereof. If Lessee fails to pay rent when due and the default continues for seven (7) days thereafter, then Lessor may, at Lessor's option, declare the entire balance of rent payable hereunder to be immediately due and payable; may exercise any and all rights and remedies available to Lessor at law or in equity; may immediately terminate this Lease, provided that all terms concerning amounts due to Lessor and Lessor's rights to recover such amounts and costs of collection shall survive such termination; and, may seek to relet the Premises to a new tenant provided that Lessee's rent payment obligations to Lessor may be reduced if the Premises is relet in the same manner as described in Paragraph 21, Abandonment, below. 21. Abandonment. If at any time during the Term of this Lease Lessee abandons the Premises or any part thereof, Lessor may, at Lessor's option, obtain possession of the Premises in the manner provided by law, and without becoming liable to Lessee for damages or for any payment of any kind whatever. Lessor may, at Lessor's discretion, as agent for Lessee, relet the Premises, or any part thereof, for the whole or any part thereof, for the whole or any part of the then unexpired Term, and may receive and collect all rent payable by virtue of such reletting, and, at Lessor's option, hold Lessee liable for any difference between the rent that would have been payable under this Lease during the balance of the unexpired Term, if this Lease had continued in force, and the net rent for such period realized by Lessor by means of such reletting. If Lessor's right of reentry is exercised following abandonment of the Premises by Lessee, then Lessor shall consider any personal property belonging to Lessee and left on the Premises to also have been abandoned, in which case Lessor may dispose of all such personal property in any manner Lessor shall deem proper and Lessor is hereby relieved of all liability for doing so. 22. Premises Owned by the Lessor. The Premises, and any improvements made thereto by the Lessor during the term of this Lease are and shall always remain the sole property of the Lessor, and the Lessee shall have no right, title, or interest therein. 23. Indemnification: Hold Harmless. The Lessee promises and covenants to hold harmless, defend and indemnify the Lessor, its directors, employees, elected officials, officers, agents, representatives, successors and assigns, from and against any and all liabilities, claims, liens, penalties Page 4 of 8 315 Benchmark Lease Agreement w/ Vail Tenure, LLC May 14, 2019 or damages of any nature, whether present or future (including without limitation damages for personal injury, disease and death; property damage; administrative or judicial penalties or fines; accountants fees, consultants fees and attorney's fees associated with or necessary for the Lessor's defense of matters arising under this Lease), arising out of, or related directly or indirectly to this Lease or the use of the Premises by the Lessee. Use of the Premises by Lessee shall include without limitation any use, activity, actions or omissions by employees, sub-lessees, their invitees, independent contractors or customers of Lessee. Lessee expressly indemnifies Lessor for damage or loss to any personal property of Lessee or sub-lessee's that reside at the Premises. 24. Recording of Lease Prohibited. Lessee shall not record this Lease on the Public Records of any public office. In the event that Lessee shall record this Lease, this Lease shall, at Lessor's option, terminate immediately and Lessor shall be entitled to all rights and remedies that it has at law or in equity. 25. Insurance. Lessee shall maintain Commercial General Liability insurance with minimum combined single limits of One Million Dollars ($1,000,000.00) Dollars each occurrence and of One Million Dollars ($1,000,000.00) aggregate. The policy shall be applicable to all operations of Lessee on the Premises. The policy shall include coverage for bodily injury, broad form property damage (including completed operations), personal injury (including coverage for contractual and employee acts), blanket contractual, independent contractors, products, and completed operations. The policy shall contain a severability of interests provision. Coverage shall be provided on an "occurrence" basis as opposed to a "claims made" basis. Such insurance shall be endorsed to name the Town as Certificate Holder and name the Town, and its elected officials, officers, employees and agents as additional insured parties. Lessee shall provide a copy of the insurance policy naming the Town as additional insured. Lessee shall provide at least thirty (30) days prior written notice to Town of any change in the insurance policy. Any failure of Lessee to maintain the insurance policy or failure to provide the minimum required notice shall be a default of this Lease by Lessee. Lessee is recommended to purchase renter's insurance. 26. Binding Effect. This Lease shall be binding upon and inure to the benefit of the Parties hereto and their respective successors and permitted assigns. 27. Severability. If any provision of this Lease or the application thereof shall, for any reason and to any extent, be invalid or unenforceable, neither the remainder of this Lease nor the application of the provision to other persons, entities or circumstances shall be affected thereby, but instead shall be enforced to the maximum extent permitted by law. 28. Governing Law; Venue. This Lease shall be governed by and construed in accordance with the laws of the State of Colorado. The Parties agree that venue for any dispute regarding this Lease shall be proper in Eagle County, Colorado. 29. Costs and Attorneys' Fees. In the event that Lessor has to pursue legal action to collect Monthly Lease Payments or to recover possession of the Premises, Lessor shall be entitled to recover all costs and attorney's fees incurred in any such legal action. 30. Relationship of the Parties. Nothing contained in this Lease shall be deemed or construed Page 5 of 8 315 Benchmark Lease Agreement w/ Vail Tenure, LLC May 14, 2019 by the Parties hereto or by any third person to create the relationship of employer and employee, principal and agent, or of a partnership or joint venture, or of any association between Lessor and Lessee. 31. Headings for Convenience Only. The headings, captions and titles contained herein are intended for convenience and reference only and are not intended to define, limit, or describe the scope or intent of any provision of this Lease. 32. Construction. The pronouns used herein shall include, where appropriate, either gender or both, singular and plural. 33. Non -Waiver. No indulgence, waiver, election or non -election by Lessor under this Lease shall affect Lessee's duties and liabilities hereunder. 34. Modification. This Lease and its attached exhibits set forth the entire understanding and agreement between the Parties hereto with respect to the Premises. Except as otherwise provided herein, this Lease may be modified, amended, changed, or terminated, in whole or in part, only by an agreement in writing and duly authorized and executed by the Parties hereto. 35. Notice. Any notice, demand, or other communication required or permitted to be given by any provision of this Lease shall be given in writing, delivered personally, send by e-mail, or sent by certified or registered mail, postage prepaid and return receipt requested, or by overnight courier, with shipping charges prepaid, addressed as follows: To the Lessor: Town of Avon Attn: Preston Neill, Deputy Town Manager 100 Mikaela Way P.O. Box 975 Avon, CO 81620 neillgavon.org To Lessee: Vail Tenure, LLC Attn: Richard Wheelock P.O. Box 6391 Avon, CO 81620 richcardow@yahoo.com All notices, demands, requests or other communications shall be effective upon such personal delivery, upon acknowledgement of receipt of an e-mail, or one (1) business day after being deposited with Federal Express or other nationally recognized overnight air courier service or three (3) business days after deposit in the United States mail. Each party may change its address by providing written notice of such address change to the other party with at least ten (10) days notice. Page 6 of 8 315 Benchmark Lease Agreement w/ Vail Tenure, LLC May 14, 2019 READ, UNDERSTOOD AND AGREED: LESSOR: Town of Avon, Colorado By: Attest: it c Aeil, T n ana er LESSEE: Vail Tenure, LLC By: 4r Print name Title: MVI-- ' V'— Page 7 of 8 315 Benchmark Lease Agreement w/ Vail Tenure, LLC May 14, 2019 Brenda Torres, Town C EXHIBIT A "Premises" .LEVEL � 1 aF I PRIMARY ENTRANCE/EXIT i- `$, d i LEVEL 2 , t . fi ✓ Page 8 of 8 315 Benchmark Lease Agreement w/ Vail Tenure, LLC May 14, 2019