TC Ord. No. 1998-07 Authorizing execution of a certain lease agreementTOWN OF AVON
ORDINANCE NO. 98-7
SERIES OF 1998
AN ORDINANCE AUTHORIZING EXECUTION OF A
CERTAIN LEASE AGREEMENT
BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF AVON,
COLORADO;
Section 1. That certain Governmental Agreement between the Town of Avon and
Firstbank of Avon, a copy of which is attached hereto and incorporated herein, is hereby
approved.
Section 2. The mayor and the town clerk are authorized and directed to take all
action and to execute the Lease Agreement and all necessary documents related to the
Agreement and each Supplement.
INTRODUCED, APPROVED, PASSED ON FIRST READING AND
ORDERED POSTED the 9t' day of June, and a public hearing on this ordinance shall be
held at the regular meeting of the Town Council the 23`d day of June, 1998, at 5:30 P.M.
in the Council Chambers, Avon Municipal Building, 400 Benchmark Road, Avon,
Colorado.
A ST:
i�SAII�
Nash, Town Clerk
4ck Fawcett, Mayor
i
INTRODUCED, FINALLY APPROVED, PASSED ON SECOND READING
AND ORDERED POSTED the 23`d day of June, 1998.
Ja4 Fawcett, Mayor
T:
Nash, Town Clerk
APPROVED AS TO FORM:
4A -L'-
John unn, Town Attorney
LEASE AGREEMENT
THIS LEASE AGREEMENT is entered into as of the 1st day
of July, 1998, between FIRSTBANK OF AVON ( "Lessor ") and TOWN OF
AVON ( "Lessees ") with respect to Sandy Scott's sculpture of five
horses titled "Rite of Passage" ( "the Sculpture ").
LEASE TERM. Lessor leases the Sculpture to Lessee for
a term of thirty -one months commencing on July 1, 1998, and
ending on February 1, 2001.
LEASE PRICE. The lease price is $228,000,togther with
interest on the unpaid principal balance at the rate of 7.42% per
annum.
TITLE - .SECURITY. During the term of this Lease, title
to the Sculpture will be in the name of the Lessor. To secure
the payment of all of.Lessee's obligations to Lessor hereunder,
Lessee grants to Lessor a security interest in the Sculpture and
agrees to execute such additional documents, in form satisfactory
to Lessor, as Lessor deems necessary or advisable to establish
and maintain its security interest in the Sculpture.
LEASE PAYMENTS. Lease payments in the amount of
$76,000 each, together with then accrued interest, shall be made
on February 1, 1999, February 1, 2000, and February 1, 2001,
subject to annual appropriation.
NONAPPROPRIATION. It is Lessee's intent to make lease
payments for the full term. However, if Lessee does not budget
for any successive fiscal period to continue making the lease
payments, and it has no funds for such payments from other
sources, Lessees may terminate this Agreement with respect to the
Sculpture at the end of the then current fiscal period, and
Lessees shall not, in this sole event, be obligated to make any
payments beyond the end of the then current fiscal period, in
such event Lessor shall be entitled to return of possession of
the Sculpture and to retention of all lease payments already
made, together with costs of taking possession and storing the
sculpture pending its disposition.
INSURANCE. At its own expense, Lessee shall cause
casualty insurance to be carried and maintained with respect to
the Sculpture with loss payable to Lessor and shall carry public
liability and property damage insurance sufficient to protect
Lessor from liability in all events. Lessee shall provide a
certificate of insurance in evidence thereof.
DAMAGE OR DESTRUCTION OF EQUIPMENT. In the event the
Sculpture is partially damaged or destroyed, Lessee shall have
the option to terminate this Agreement upon making of the payment
due during the then current fiscal period.
OPTION TO PURCHASE. Lessee shall have the option to
purchase the Sculpture at any time during the lease term by
payment of the remaining lease payments due together with then
accrued interest. Making of the final lease payment on or before
January 15, 2001, including accrued interest, shall be deemed to
be an exercise of this option. Upon exercise of this option,
title to the Sculpture shall be deemed vested in the Lessee.
MISCELLANEOUS. An express waiver by Lessor of Lessee's
breach of any term, covenant or condition hereof shall not be a
waiver of"any. subsequent breach of the same or-any other term;
covenant or condition. This Agreement constitutes the entire
agreement between the parties and shall -not be modified, amended,
altered or changed except in writing. This Agreement. shall be
governed by the laws,of the State of Colorado and any provision
of,this Agreement found to be prohibited by law shall be
ineffective to the extent of such prohibition without
invalidating the remainder of this Agreement.
TOWN OF AVON
By:
Mayor
FIRSTBANK OF AVON
U 'u.
P,01
STATE OF COLORADO )
COUNTY OF EAGLE ) SS
TOWN OF AVON
NOTICE IS HEREBY GIVEN OF A PUBLIC HEARING BEFORE THE TOWN COUNCIL
OF THE TOWN OF AVON, COLORADO AT 5:30 P.M. ON THE 23rd DAY OFJUNE, 1998,
AT THE TOWN MUNICIPAL BUILDING FOR THE PURPOSE OF CONSIDERING THE
ADOPTION OF ORDINANCE NO. 98-7, SERIES OF 1998:
AN ORDINANCE AUTHORIZING EXECUTION OF A CERTAIN LEASE AGREEMENT
A copy of said Ordinance is attached hereto, and is also on file at the office of the Town Clerk,
and may be inspected during regular business hours.
Following this hearing, the Council may consider final passage of this Ordinance.
This notice is given and posted by order of the Town Council of the Town of Avon, Colorado
Dated this 12th day of June, 1998.
TOWN OF VON, COLORADO
BY:
Kris Nash
Town Clerk
POSTED AT THE FOLLOWING PUBLIC PLACES WITHIN THE TOWN OF AVON ON
JUNE 12,1998:
AVON MUNICIPAL BUILDING IN THE MAIN LOBBY
AVON RECREATION CENTER
CITY MARKET IN THE MAIN LOBBY; AND
EAGLEBEND APARTMENTS - CLUBHOUSE LAUNDRY