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HomeMy WebLinkAboutresolution.council.013-25RESOLUTION #013 (Series of 2025) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, APPROVING A LETTER OF INTENT BETWEEN THE CITY OF ASPEN AND THEATRE ASPEN AND AUTHORIZING THE CITY MANAGER TO E��ECUTE SAID LETTER ON BEHALF OF THE CITY OF ASPEN, COLORADO, V�JHEREAS, there has been submitted to the City Council a Letter of Intent, to propose a new lease and to allow the commencement of a land use application necessary for a permanent theater to be constructed by Theatre Aspen at Rio Grande Park, between the City of Aspen and Theatre Aspen, a true and accurate copy of which is attached hereto as Exhibit "A"; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, That the City Council of the City of Aspen hereby approves that Letter of Intent for a proposed new lease between the City of Aspen and Theatre Aspen for Theatre Aspen's new facility in Rio Grande Park, between the City of Aspen and Theatre Aspen, a copy of which is annexed hereto and incorporated herein, and does hereby authorize the City Manager to execute said letter of intent on behalf of the City of Aspen. INTRODUCED, READ AND ADOPTED by the City Council of the City of Aspen on the 11 to day of February 2025 . Torre, Mayor I, Nicole Henning, duly appointed and acting City Clerk do certify that the foregoing is a true and accurate copy of that resolution adopted by the City Council of the City of Aspen, Colorado, at a meeting held, February 11, 2025. Nicole Henn�ng, City Clerk Docusign Envelope ID: 741AE5AC-4227-4CEB-AB89-5CA323AC5C4D City of Aspen Attn: Sara Ott, City Manager Producing Director 427 Rio Grande Place Jed Bernstein Aspen, CO 81611 Board of Trustees Clare Evert -Shane Re: Proposed New Lease for Theatre Aspen in Rio Grande Park Co -Chair Robin Smith Dear Ms. Ott: Co -Chair Kenny Lipschutz Vice Chair In continuance of our discussions, we present the following proposal to you for a Juliet Shield -Taylor new lease between the City of Aspen and Theatre Aspen for the Theatre Aspen's Secretary proposed new facility in Rio Grande Park: Kenny Tate Treasurer Tenant: Theatre Aspen, a Colorado nonprofit corporation Lisa Baker Meredith Berman Landlord: City of Aspen Nancy Blank Karen Brooks Project: A new Theatre Aspen performance facility and related Terri Caine improvements to be constructed by Tenant at Tenant's sole cost. David Chazen Construction would not be commenced until the Project has Michele DeWitt � Nicholas Dubrul received all necessary land use entitlements, construction permits Darlynn Fellman and sufficient funding/financing to provide Landlord with comfort Charlene Freedland the Project will be completed. Jeff Grinspoon Jim Grusecki Soledad Hurst Premises: Approximately 34,000 square feet of land area within Rio Grande Rachel Klausner Park, with rights of ingress/egress and utility extensions through Barbara Lee surrounding portions of Rio Grande Park, all as depicted on the Mark Mason conceptual site plan attached as Exhibit A. Jennifer Moses Obie Oberman Jerry Parker Use of Premises: The primary use of the Premises would be the operation of a Courtney Presutti performing arts theater facility for productions staged by Tenant and Erica Simpson occasional special events (such as an annual fundraising gala) Don Short Melanie Sturm hosted by Tenant. The main operating season for Tenant's stage Jennifer Styslinger productions would be in the summer months, but some Kenny Tate performances would occur in the fall and winter seasons, with Amy Verschleiser special emphasis on the winter holiday season in December and Monica Vidal early January. Chuck Wall Bryan Weingarten Tenant will have the right to rent out its facilities to third parties for Honorary Trustees compatible uses such as, without limitation, music performances, Greg Erwin lectures, other stage productions, meetings, weddings and other Pat Fallin rivate s ecial events. Tenant acknowled es there will need to be Maureen Holman p p g Kent Reed, Founder some limits on rental of the facilities for private events and other commercial purposes. 970.925.9313 110 E Hallam St., #102 Aspen, CO 81611 TheatreAspen.org Docusign Envelope ID: 741AE5AC-4227-4CEB-AB89-5CA323AC5C4D Tenant will also make its facilities available for use for public community events and to area non -profits, schools or other organizations at reduced or no cost. Certain exterior areas of the Premises will remain open to public access, as depicted on the attached Site Plan. Vehicle access through the adjacent park areas will be restricted to designated routes and following completion of construction may be limited to the extent feasible to small, electric vehicles and other low -impact vehicles as approved by Landlord. Initial Term: 40 years, commencing on issuance of a construction permit for the Project. Options to Extend Term: Landlord will provide Tenant with two 10-year renewal options. Base Rent: $10.00 per year payable in one lump sum of $400 upon commencement of the lease. Ownership of Buildings: Tenant will be considered the owner of the buildings and other improvements constructed by Tenant within the Premises for the term of the Lease. In this regard, the Lease will be considered a ground lease. Following termination of the Lease following any extensions exercised by Tenant, Tenant will quit claim its interest in such improvements to Landlord. Tenant will not be responsible for demolishing the improvements or restoring the Premises to park condition following the end of the Lease. Reclamation: Tenant acknowledges the City would be concerned if construction work on the project commences and then cannot be completed for some reason. Tenant will agree to provide a bond, letter of credit or other acceptable financial security to ensure the City has the means to reclaim and restore the Premises if the Tenant is unable to complete construction. Tenant's Maintenance: Tenant will be responsible for cleaning, maintaining and repairing the buildings) and all access pathways, lighting, landscaping, irrigations systems, utilities and other infrastructure constructed by Tenant within the Premises as shown on the attached Site Plan — Exhibit B and highlighted in yellow. Landlord will be responsible for maintenance and snow removal outside this area. However, Tenant will be responsible for supplemental snow removal as shown on the attached Site Plan and highlighted in blue which are provided for pedestrian access to the Premises after the hours of 4:30 p.m. for any winter season evening programming. Tenant will also be responsible for any damage caused to the park facilities outside of the Premises resulting from negligent, willful or excessive damage 2 Docusign Envelope ID: 741AE5AC-42274CEB-AB89-5CA323AC5C4D caused by Tenant, its employees, agents or customers, ordinary wear and tear excepted. Landlord's Maintenance: Landlord will be responsible for maintenance of the park facilities and irrigation system within park area outside of the Premises, including pathways and any lighting outside of the Premises. Landlord will be responsible for all snow plowing outside of the Premises, except for the supplemental snow plowing that will be Tenant's responsibility as described above in the Tenant's Maintenance section. Utilities: Tenant will be responsible for paying for all utility services provided to the Project. All utility services provided to the Project will be separately metered and the utility accounts will be in the name of Tenant. Taxes: Tenant will be responsible for paying any taxes that are levied and assessed upon the Premises or upon the improvements, fixtures or personal property of the Tenant during the term of the Lease and upon the leasehold or possessory interests created by the Lease. Signage: Tenant will be permitted, at its sole cost and expense, to install and maintain signage for the Project per the signage plan approved by the City as part of the land use entitlements for the Project. All signage will comply with all applicable regulations and ordinances. Assignment: Tenant may not assign or transfer -the Lease without the prior written consent of Landlord, which consent will not be unreasonably withheld, conditioned or delayed. Alterations by Tenant: Tenant, subject to the prior approval of the City Manager's Office and subject to obtaining any required additional or amended land use entitlements from the City, may, at its own expense, make reasonable alterations, improvements or additions to the Premises, including any of the buildings and other improvements originally constructed by Tenant as part of the Project. All expenses related to Tenant's alteration work shall be at the Tenant's sole expense. Tenant will be required to provide the City Manager's Office with reasonable advance notice of and agree on reasonable timing for any significant work or maintenance. Alterations by Landlord: Landlord reserves the right, from time to time, at its own expense to make such alterations, maintenance activities, renovations or repairs in and about the areas of Rio Grande Park outside the immediate boundaries of the Premises as Landlord may deem necessary or desirable and Tenant covenants to make no claim against Landlord for any interference with its interest under the Lease in the Premises. 3 Docusign Envelope ID: 741AE5AC-4227-4CEB-AB89-5CA323AC5C4D Landlord will provide reasonable notice to Tenant in advance of undertaking any work other than regular maintenance and upkeep in areas of Rio Grande Park outside of the Premises and the work will be performed at such reasonable times as may be mutually agreed to between the parties so as to eliminate or minimize any disruption of Tenant's operations. Landlord may not undertake any such work within the Premises without Tenant's prior written consent. Liability Insurance: Tenant will maintain commercial liability insurance covering its use of the Premises with Landlord as an additional insured in an amount not less than the maximum liability that can be imposed on Landlord under the laws of the State of Colorado. Such limits are currently: $424,000 for injury to any one person in any single occurrence and $1,195,000 for any injury to two or more persons in any single occurrence. Property Insurance: Tenant shall maintain property insurance on the buildings) and other insurable improvements constructed by Tenant within the Premises. Any such insurance will include, if reasonably available, a waiver of the insurer's rights of subrogation against Landlord. Termination by Casualty: If the buildings) constructed by Tenant within the Premises are damaged by fire or other casualty to the point that they cannot be restored using reasonable efforts within 12 months from the occurrence of the damage, then Tenant will have the right to terminate the Lease. If Tenant chooses to terminate the Lease, then Tenant will be responsible, if requested by the City, for demolishing the buildings and other improvements constructed by Tenant and restoring the Premises to a sodded grass park condition. If Tenant chooses to keep the Lease in effect, Tenant will be responsible for restoring the buildings and other improvements to their prior condition within a reasonable time period for continued use by Tenant under the Lease. All insurance proceeds resulting from Tenant's insurance policies and coverage shall remain property of Tenant, regardless of whether Tenant chooses to terminate the Lease, provided that all available insurance proceeds must first be used by Tenant toward demolition and restoration of the Premises if required as provided herein. Indemnification: Except to the extent caused by the negligence, recklessness or willful acts of Landlord, Tenant will agree to indemnify and hold harmless Landlord, its officials and employees, from and against all liability, claims, and demands, arising from bodily injury, personal injury, sickness, disease, death, or loss or damage to tangible property occurring from Tenant's occupancy of the Premises, if such injury, loss, or damage is caused in whole or in part by, the omission, error, or negligence of Tenant, any contractor of Tenant, or which Docusign Envelope ID: 741AE5AC-42274CEB-AB89-5CA323AC5C4D arises out of any workmen's compensation claim of any employee of the Tenant or of any employee of any contractor of Tenant. Non -Discrimination: Tenant will not discriminate against any worker, employee or job applicant, or any member of the public, because of race, color, creed, religion, ancestry, national origin, sex, age, marital status, disability, affectional or sexual orientation, family responsibility or political affiliation, nor otherwise commit an unfair employment practice in violation of applicable law and shall at all times comply with City Ordinances. Potential Public Vote: Tenant acknowledges that the City's final approval of the lease and/or the accompanying land use approvals could become the subject of a public vote for a variety of reasons. This letter is for the purpose of demonstrating the parties' general intent and to further their discussions. This letter is not intended to memorialize a binding agreement between the parties. This letter is not binding upon either party and, notwithstanding any past, present, or future written or oral indications of negotiation or agreement to some or all matters under negotiation, the parties shall not be bound each to the other until the terms contained herein have been incorporated into a formal, fully executed lease agreement. Sincerely, Theatre Name: Jed Bernstein 17 MIS Acknowledged on behalf of the Ci DocuSigned by: �A,V'a �. �/13/2025 � 7:47:33 AM PST 2DA4D214EE1942B... Sara Ott, City Manager Type to Docusign Envelope ID: 741AE5AC-42274CEB-AB89-5CA323AC5C4D SITE PLAN [see attached] 0 / � o / / /,;= ����` N ' M Q U m m -� W U ti N N d' U Q W Q �t ti 0 N a 0 a� c w c rn .N U O 0 J -� ��^�� \\ �� � ' �� 1 1 \ 1 � ,_ �, � I � _ I I i �-- � � / �--� i � -�� � / � � � - '+ / � / �� �. \ �, ��,� \ \ \ � ` \ \ �\ � \ � � \\ \\ �� �� `J �� / / /� 1 I . �i i \ \ �� \ � ;t;:r;`� �:�: _ :�:: �:�:}�:� .:., ::::: .;+;'^ .:: p : •�'� ��.:: f? . .. .:.: �� a� o. O c W c rn U) U 0