Loading...
HomeMy WebLinkAboutresolution.council.086-26RESOLUTION # 086 (Series of 2026) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, APPROVING A LEASE BETWEEN THE CITY OF ASPEN AND THE EARLY LEARNING CENTER AND AUTHORIZING THE CITY MANAGER TO EXECUTE SAID LEASE ON BEHALF OF THE CITY OF ASPEN, COLORADO0 WHEREAS, there has been submitted to the City Council a Yellow Brick Lease agreement, between the City of Aspen and The Early Learning Center, 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 the Yellow Brick Lease, between the City of Aspen and The Early Learning Center, a copy of which is annexed hereto and incorporated herein, and does hereby authorize the City Manager to execute said agreement on behalf of the City of Aspen. RESOLVED, APPROVED, AND ADOPTED FINALLY by the City Council of the City of Aspen on the 14th day of July, 2026. 1 Richards, 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, July 14th, 2026. t Nicole Henning, City Clerk YELLOW BRICK LEASE AGREEMENT BETWEEN THE CITY OF ASPEN THE EARLY LEARNING CNETER This LEASE AGREEMENT, made and entered into this ls` Day of September, 2026 the City of Aspen (hereinafter referred to as "Landlord"), whose address is 130 S. Galena St., Aspen, Colorado, 81611 and THE EARLY LEARNING CENTER (hereinafter referred to as "Tenant") whose address is 215 N. Garmisch, Aspen, Co. WITNESSETH: Section 1. Leased Premises. In consideration of the mutual covenants and agreements set forth herein Landlord does hereby lease to Tenant and Tenant does hereby rent from Landlord the following described Leased Premises ("Leased Premises") within the City owned building located at 215 N. Garmisch Street, Aspen, CO ("Building"). The areas of the building referred to herein as Common Areas including central hallways, kitchens, east bathrooms, lower -level bathroom, gymnasium, kitchen, and laundry room. Common area does not include classroom space, office space, storage space and bathrooms used entirely by childcare programs and included in your rented premises. Common Areas are provided at no charge for the use by the building tenants. Tenants are not charged for the use of the common space but must work in partnership with other tenants regarding the use of the common space. The Landlord expressly reserves the right to withhold its consent to any change of use or purpose in its unrestricted discretion. Section 2. Term. The Term of this Lease shall commence at 12:01 am, September 1 S`, 2026, and shall expire at 12am September 1st 2027. The Tenant shall have the right to extend the term of the lease for an additional year, commencing 12:Olam September ls`, 2027, and terminating 12am September 1S`, 2028, by giving notice to the Landlord of the intent to extend the lease in writing no later than 12am July 151h 2027. Section 3. Rent Tenant shall pay Landlord at the address of the Landlord or at such other place as Landlord may from time to time designate in writing to Tenant, without any prior demand therefore and without any deduction or setoff whatsoever, an annual rental for the Leased Premises in yearly installment in accordance with the following schedule: 1 Docusign Envelope ID: 2499684A-COFE-866B-839F-38B4124OE4A9 EXHIBIT A YELLOW BRICK LEASE AGREEMENT BETWEEN THE CITY OF ASPEN THE EARLY LEARNING CNETER This LEASE AGREEMENT, made and entered into this 1St Day of September, 2026 the City of Aspen (hereinafter referred to as "Landlord"), whose address is 130 S. Galena St., Aspen, Colorado, 81611 and THE EARLY LEARNING CENTER (hereinafter referred to as "Tenant") whose address is 215 N. Garmisch, Aspen, Co. WITNESSETH: Section 1. Leased Premises. In consideration of the mutual covenants and agreements set forth herein Landlord does hereby lease to Tenant and Tenant does hereby rent from Landlord the following described Leased Premises ("Leased Premises") within the City owned building located at 215 N. Garmisch Street, Aspen, CO (`Building"). The areas of the building referred to herein as Common Areas including central hallways, kitchens, east bathrooms, lower -level bathroom, gymnasium, kitchen, and laundry room. Common area does not include classroom space, office space, storage space and bathrooms used entirely by childcare programs and included in your rented premises. Common Areas are provided at no charge for the use by the building tenants. Tenants are not charged for the use of the common space but must work in partnership with other tenants regarding the use of the common space. The Landlord expressly reserves the right to withhold its consent to any change of use or purpose in its unrestricted discretion. Section 2. Term. The Term of this Lease shall commence at 12:Olam, September ls`, 2026, and shall expire at 12am September 1st 2027. The Tenant shall have the right to extend the term of the lease for an additional year, commencing 12:Olam September 1St, 2027, and terminating 12am September 1St, 2028, by giving notice to the Landlord of the intent to extend the lease in writing no later than 12am July 15`h 2027. Section 3. Rent Tenant shall pay Landlord at the address of the Landlord or at such other place as Landlord may from time to time designate in writing to Tenant, without any prior demand therefore and without any deduction or setoff whatsoever, an annual rental for the Leased Premises in yearly installment in accordance with the following schedule: 1 Docusign Envelope ID: 2499684A-COFE-866B-839F-38B4124OE4A9 Yearly rent for Childcare spaces, including rooins; one downstairs storage, Rooms #3, #75 #85 #95 #105 #11, #12, #13, and #14 i wll be equal to $10.00 per year, due the September 1 st, paid in full. And Pro -rated shares %J utilities will be billed monthly to the tenant. This annual Rent shall be payable one yearly installment due on the first day September during the term hereof without prior demand. Rent shall be delivered or mailed to The City of Aspen/Kids First at 215 N. Garmisch, Suite #1, Aspen, CO 81611 Section 4. General Conditions. The parties hereto agree that the General Conditions to the Yellow Brick Lease Agreement appended hereto as Exhibit A is incorporated herein as if fully set forth here and shall constitute essential terms and conditions of this Lease Agreement. IN WITNESS WHEREOF, the Landlord and Tenant have executed this Lease Agreement on the day and year first above written. LANDLO • s�g�ea bY: CITY OF ASPEN BY:Pt llw� sk&y TITLE: DATE: 7 16 2026 3: 9:42 PM MDT City Manager TENANT: MargaretMcLain THE EARLY LEARNIN�eri�' df`19t� EL��� CHAIR BY: Margaret McLain (May 29. 2026 13:55:16 MDT) TITLE: DATE: May 29, 2026 2 Docusign Envelope ID: 2499684A-COFE-866B-839F-38B4124OE4A9 GENERAL CONDITIONS TO YELLOW BRICK LEASE AGREEMENT The following General Conditions constitute essential terms and conditions to Lease Agreements governing the rental of space within the City owned Yellow Brick managed by Kids First. Kids First is a childcare resource center that promotes quality, affordable childcare choices in the City of Aspen. It manages the Yellow Brick Center for the City of Aspen and as such, is the Landlord's designated representative in all matters related to the lease Agreement. ARTICLE I Security Deposit Tenant shall, on or before, the commencement of the Term of the Lease Agreement, deposit with Landlord as security for the performance of all terms, covenants, and conditions of this Lease, the sum of 2737.78 which was paid and collected in 2006. This deposit shall be retained by Landlord until the expiration of the Lease, and any renewals or extensions thereof, at which time the deposit shall either be returned to Tenant or retained by Landlord in accordance with the provisions of CRS 3842401, et seq. In noway is it understood or to be construed that this security deposit is to be considered as the final rental payment due under this Lease. ARTICLE II Penalties for Late Payment of Rent 1. If the Tenant fails to pay yearly installments of: a. the Rent per Section 3 of the Lease Agreement; or bo the utilities assessment per Section 5 of these General Conditions; or c. the insurance assessment per Section 6; of these General Conditions. d. or the Common Area maintenance assessment per Section 7 of these General Conditions; e. or the tax assessment per Section 8 of these General Conditions. by the tenth (1 Oth) day of the month in which it is due, Tenant shall be responsible for a penalty of an additional five percent (5%) of the monthly Rent. 2. The Landlord need not give any notice to be entitled to this payment, and such additional rentals or penalties shall in no way be construed to limit the Landlord's remedies in the event of such default, which remedies shall in all cases hereunder be deemed to be cumulative. 3. In the event all or part of the Rent as described in Section 1 of this Lease Agreement is delinquent beyond the 30th day of the month in which it is due, the delinquent amount shall bear interest at the rate of one and one-half percent (1.5%) per month. ARTICLE III Utilities. 1. Tenant shall pay to the appropriate utility service provider for all utilities, including but not limited to, trash removal, telephone, water, Internet, cable, gas and electricity, separately supplied or separately metered to the Leased Premises. Docusign Envelope ID: 2499684A-COFE-866B-839F-38B4124OE4A9 2. Tenant shall pay to Landlord its pro rata shares of the Cornrnon Area utility costs for the building. The Common Area utility costs shall include gas (heat), electric, water and sewer costs, security measures, and trash removal. The Common Area utility costs shall be payable monthly within ten (10) days of receipt of an invoice from the Landlord. 3. Landlord shall not be liable ul damages or otherwise for any interruption or failure of any utility serving the Leased Premises when such interruption or failure is not due to the negligence of Landlord. 4. Tenant further agrees that Tenant will not install any equipment which will exceed or overload the capacity of any utility facility, and that if any equipment installed by Tenant shall require additional utility facilities; the same shall be installed and maintained at Tenant's expense in accordance with the plans and specifications which have received prior written approval by Landlord. ARTICLE IV Insurance 1. Tenant, at its own expense, shall maintain in full force during the Term of the Lease Agreement policies of comprehensive insurance, including property damage, written by one or more responsible insurance companies licensed to do business in Colorado which will insure Tenant, Landlord and the City of Aspen against liability for injury to persons and/or property, and death of any person or persons occurring in or about the Premises. Each policy shall be approved as to form and insurance company by Landlord. The liability under such insurance shall not be less than $1,000,000 for any one person injured or killed, and not less the $1,000,000 for any one accident, and not less than $100,000 property damage. If in the considered opinion of Landlord's insurance advisor, the amount of such coverage is not adequate, Tenant agrees to increase that coverage to such reasonable amounts that Landlord's advisors shall deem adequate. The policies shall name as insured parties, Tenant, Landlord, the City of Aspen and any persons, firms or corporations designated by Landlord, and shall contain a clause that the insurer will not cancel or change the insurance without first giving the Landlord thirty (30) days' prior written notice. A copy of the policy or a certificate of insurance shall be delivered to the Landlord. If Tenant fails to comply with this paragraph, Landlord shall have the right to obtain the said insurance and pay the premiums therefore, and in such event the entire amount of such premium shall be immediately paid by Tenant to Landlord. 2. The Tenant agrees that it will at all times during the lease term maintain in full force and effect on all its furniture, fixtures and equipment in the Leased Premises a policy or policies of fire insurance with the standard extended coverage endorsement attached to the extent of at least eighty percent (80%) of their insurable value, the proceeds of which will, so long as this Lease is in effect, be used for the repair or replacement of fixtures and equipment so insured. It is understood that the Landlord shall have no interest in the insurance upon Tenant's equipment and fixtures and will sign all documents necessary or proper in connection with the settlement of any claim or loss by Tenant. 3. Landlord shall pay the cost of fire, casualty, liability, and extended coverage insurance covering the Leased Premises against loss or damage by fire and by other risks now or hereafter embraced by "extended coverage," so called, in amount of the full insurable value of the Leased Premises (both the exclusive and nonexclusive premises.) Docusign Envelope ID: 2499684A-COFE-866B-839F-38B4124OE4A9 ARTICLE V Taxes Tenant shall pay before delinquency any and all tax assessments, property taxes levied on its leasehold interest, license fees, and public charges levied or assessed or imposed which become payable during the term hereof upon Tenant's furniture, fixtures, appliances and personal property, installed or located in the Leased Premises. ARTICLE VI Permitted Uses. 1. Tenant shall use the Leased Premises for childcare and for no other purpose without Landlord's written consent. Childcare shall be defined as care for a child aged birth to 5 years, and not having entered Kindergarten. Priority for classroom space shall be determined by the Kids First Advisory Board and approved by Aspen City Council. Leases will be approved for specific ages, scheduling, and numbers of children to be served in each room. Classroom space will be available based on the following performance standards and criterion: During the term of this lease the Leased Premises shall be used for in -session childcare a minimum of Monday through Friday a minimum of eight (8) hours per day, including the hours of 9:00 am to 4:00 pm of each day. a. Effective use of the space -Effective use of the space will be based on a monthly average number rather than a percentage, with the following applicable minimums: 1) Preschool classrooms: minimum of 12 children 2) Toddler classroom: minimum of 9 children that includes all children over age 2 3) Toddler classrooms: minimum of 6 children that includes children under age 2 4) Infant classrooms: minimum of 6 children. If a classroom is not filled pursuant to these requirements for a period of 60 days, the Tenant will be required to submit a plan to bring the room back into compliance with this Lease Agreement capacity requirement. Notwithstanding the foregoing, Tenant must use reasonable efforts to attempt to always maintain this capacity requirement. Kids First Advisory Board will determine, in its sole discretion, whether the plan is acceptable and whether Tenant used reasonable efforts to attempt to maintain the required capacity. The leased classroom(s) may be made available to another childcare provider at the sole discretion of Kids First Advisory Board at any time after the 60-day period of non- compliance, if a plan is not acceptable to the Board. In such a case, the failure to maintain the minimums shall constitute an event of default under Article XVI of the Lease Agreement and the Lease Agreement shall be amended, and the Tenant required to vacate the classroom(s) that are non -compliant, but in no event shall it affect the other in- compliance rooms under this Lease. 5 Docusign Envelope ID: 2499684A-COFE-866B-839F-38B4124OE4A9 ➢ Colorado Childcare Assistance ProgramCCCAPIObli ag tion- Childcare tenants in the Yellow Brick Building are required to maintain a current fiscal agreement (with Pitkin, Eagle, and Garfield Counties) to serve CCCAP funded children. It is the program's responsibility to keep the current fiscal agreement on file on the premises. If a space is available, a CCCAP funded child cannot be denied enrollment. A CCCAP funded child may be on a waitlist for an available space and would not receive higher priority than other children already on the wait list. Kids First childcare financial aid will reimburse the childcare program for any difference in payment between what CCCAP pays vs. what the program charges, if there is a difference in the per day rate. ➢ Community Accessibility -Priority will also be given to childcare providers offering the hours and year-round scheduling most in demand. Priority will be given to current tenants of the Yellow Brick Building as long as performance standards are met. ➢ Prompt payment of rent. ➢ Maintenance, safety and cleanliness of rooms as determined by the fire department and the health department inspections. ➢ Tenant will be charged $50 for each replacement building key, and the cost to replace any other key or key card to access the building. ➢ Responses and communication with the landlord -notices from landlord responded to in a timely manner, and written notice given for any change to the leased space. 2. Landlord expressly reserves the right to withhold its consent to any change of use or purpose in its unrestricted discretion. ARTICLE VII Prohibited Uses. l . The Leased Premises may not be used to provide childcare for children that are over 5 years of age or have attended Kindergarten without the express written permission of the Landlord. 2. Tenant will not use, occupy, or permit the Leased Premises, or any part thereof, to be used or occupied for any unlawful or illegal business, use, or purposes deemed by the Landlord to be disreputable, or hazardous, not in such manner as to constitute a nuisance of any kind, nor for any purpose or in any way in violation of any present or future laws, rules, requirements, orders, directions, ordinances or regulations of the United States of America, State of Colorado, County of Pitkin, City of Aspen, or other municipal, governmental, or lawful authority whatsoever. C Docusign Envelope ID: 2499684A-COFE-866B-839F-38B4124OE4A9 3. Tenant shall not do or permit anything to be done in or about the Premises or bring or keep anything therein which will in any way increase the rate of fire insurance upon the Building wherein the Premises are situated. Tenant shall, at its sole cost and expense, comply with any and all requirements pertaining to the Premises of any insurance company necessary for the maintenance of reasonable fire and public liability insurance covering the Leased Premises. Tenant shall promptly comply with all laws, ordinances, orders, and regulation affecting the Premises and the cleanliness, safety, and use of the same, including installation of additional facilities as required for the conduct and continuance of Tenant's business on the Leased Premises. No auction for fire or bankruptcy sales may be conducted on the Premises without Landlord's consent. ARTICLE IIX Nuisance and Cleanliness 1. Tenant covenants that it will exercise the highest duty of care to maintain the Leased Premises in a clean condition and to provide for sufficient trash and garbage service. 2. Tenant shall not permit any noxious or offensive odors to exist in or around the Leased Premises. A breach of this obligation by the Tenant shall constitute a material breach of this Lease. 3 . Tenant shall not perform any actor carry on any practices which may injure the Building of which the Leased Premises form a part or be a nuisance or menace to other Tenants in said Building. A breach of any of the terms or conditions contained in this Article X shall constitute a material breach of this Lease. 4. Tenant shall be responsible for any interior maintenance and improvements to Tenant's space. Any permanent improvements or remodels to Tenant's space to include, but not necessarily limited to, paint, carpet or flooring, lighting or interior structural changes shall be the responsibility of Tenant. All such improvements or remodels shall require the prior written approval of Landlord. 5. Landlord may, in its sole discretion, require Tenant to return the Tenant's space to its original condition at the time of default or abandonment of the lease. Repairs, Alterations, and Improvements l . Landlord shall keep in good order, condition, and repair, the exterior foundation, exterior walls (except the interior faces thereof), down spouts, gutters and roof, electrical systems, the plumbing and sewage system outside the Building. Landlord's responsibility under this section shall not apply to any damage, caused by any act of negligence of Tenant, its agents, employees, invitees, lessees or contractors. 7 Docusign Envelope ID: 2499684A-COFE-866B-839F-38B4124OE4A9 2. Tenant shall at all tunes keep the Leased Premises and all partitions, doors, door jams, door closures, door hardware fixtures, equipment and appurtenances thereof (including electrical lighting, heating, plumbing and plumbing fixtures and any air conditioning system, including accessories under the control of Tenant) in good order, condition, and repair, including replacements (including reasonable periodic painting as determined by Landlord), damage by unavoidable casualty excepted, except for structural portions, by reason of Tenant's negligent acts or omission to act. Landlord may add the cost of such repairs in the next installment of rent which shall thereafter become due. 3. Tenant shall not have the right to make any alterations, improvements, and/or additions to the Leased Premises without first obtaining Landlord's written consent. 4. Tenants are responsible for their interior upkeep and improvements or remodels which may include paint, carpet or flooring, lighting or interior structural changes. 5. The Landlord may require (upon its discretion) that the Tenant return the Leased Premises to the original condition prior to alteration at the time of forfeiture of lease. 6. All areas of the Building that are not defined as common areas, including restrooms, shall be maintained and cleaned by Tenant. Landlord shall not be liable to Tenant or to any other person whatsoever for any damage occasioned by falling plaster, electricity, plumbing, gas, water, steam, sprinkler or other pipe and sewage system or by the bursting, running or leaking of any tank, washstand, closet or waste to other pipes in or about the Leased Premises, or the Building or which they are a part, nor for any damage occasioned by water being upon or coming through the roof, or vent, or otherwise for any damage arising from any acts or neglect of co -tenants or other occupants of the Building or of adjacent property, or the public, nor shall Landlord be liable in damages or otherwise for any failure to furnish, or interruption of service of any water, gas electricity, heated water, steam and/or chilled water, caused by fire, accident, riot, strike, labor disputes, acts of God, or the making of any repairs or improvements or other causes beyond the control of Landlord. ARTICLE XI Indemnification of Landlord Tenant shall indemnify Landlord and the City of Aspen and save it harmless from and against any and all claims, actions or damages or liability or expense in the loss of life, personal injury, and/or damage to property arising from or out of any occurrence in, upon, or at the Leased Premises, or the occupancy or use by Tenant of the Leased Premises or any part thereof, or occasioned wholly or in part by any act or omission of Tenant, its agents, contractors, servants, lessees or concessionaires. In case Landlord, shall without fault on its part be made a party to any litigation commenced by or against Tenant, then Tenant shall fully protect and hold the Landlord and the City of Aspen harmless and pay all costs, expenses, and reasonable attorney's fees incurred or paid by Landlord or the City of Aspen in connection with such litigation. Tenant shall also pay all costs, expenses, and reasonable attorney's fees that may be incurred or paid by Landlord or the City of Aspen in enforcing the covenants and agreements in this Lease, so long as Landlord prevails in such litigation. E'� Docusign Envelope ID: 2499684A-COFE-866B-839F-38B4124OE4A9 ARTICLE XII Asa rmnment and Subletting Tenant shall not assign this Lease nor any interest herein, or mortgage or hypothecate this Lease or any interest herein or permit the use of the Leased Premises by any person or persons other than Tenant, or sublet the Premises in whole or in part without Landlord's prior written consent. Landlord's consent shall be entirely discretionary. ARTICLE XTTT Access to Premises l . Landlord and its authorized representatives shall have the right to enter upon the Leased Premises at all reasonable hours (and in emergencies, at all times) to inspect the same, to make repairs, additions or alterations to the Premises and for any lawful purpose. Landlord agrees to provide Tenant with reasonable notice whenever it deems necessary to enter upon the Premises. 2. For a period commencing ninety (90) days prior to the end of the lease term, Landlord may have reasonable access to the Leased Premises for the purpose of exhibiting the same to prospective tenants and to post any usual "For Lease" signs upon the Leased Premise ARTICLE XIV Damage or Destruction l . Incase the Leased Premises shall be partially or totally destroyed by fire or other casualty insurable under the full standard extended risk insurance as to become partially or totally untenantable, the same shall be repaired as speedily as possible at the expense of Landlord, unless Landlord shall elect not to rebuild as hereinafter provided, and (should that be a substantial interference with Tenant's business) a just and proportionate part of the fixed rent shall be abated until so repaired. 2. If more than fifty percent (50%) of the Building in which the Leased Premises are located shall be destroyed or so damaged by fire, or other casualty insurable under full standard extended risk insurance, as to become wholly untenantable, or if the Building in which the Leased Premises are located is destroyed to the extent of not less than thirty three and one- third percent (33 1/3%) of the replacement cost thereof, or in the event of the Leased Premises shall be partially or totally destroyed by a cause or casualty other than those covered by fire and extended coverage risk insurance, or, for such casualty the Landlord shall decide not to rebuild the Building, then in any such event, Landlord may, if it so elects, rebuild or put said Building in good condition and fit for occupancy within a reasonable time after such destruction or damage, or may give notice in writing terminating this Lease as of a date not later than sixty (60) days after any such damage or destruction, notwithstanding that the Leased Premises may have sustained little or no damage. Any such termination shall be effective ten (10) days following notification to Tenant by Landlord of Landlord's election to terminate. If Landlord elects to repair or rebuild said Building, it shall, within sixty (60) days after such damage, give Tenant notice of its intention to repair and then proceed with reasonable speed to make such repairs. Unless Landlord elects to terminate this Lease, this Lease shall remain in full force and effect and the parties waive the provisions of any law to the contrary. Docusign Envelope ID: 2499684A-COFE-866B-839F-38B4124OE4A9 ARTICLE XV Eminent Domain l . If title to all of the Leased Premises or so much thereof be taken by any public or quasi - public use under any statute or by right of eminent domain, or by private purchase in lieu thereof, so that a reasonable amount of reconstruction of the Leased Premises will not result in the Leased Premises being a practical improvement and reasonably suitable for Tenant's continued occupancy of the uses and purposes for which the Leased Premises are leased, this Lease shall terminate as of the date that possession of said Leased Premises, or part thereof, be taken. 2. If any part of the Leased Premises shall be so taken, and the remaining part thereof (after reconstruction of the then existing building in which the Leased Premises are located) is reasonably suitable for Tenant's continued occupancy for the purposes and uses for which the Leased Premises are leased, this Lease shall, as to the part so taken, terminate as of the date that possession of such part of the exclusive Leased Premises be so taken and the fixed rent shall be reduced in the same proportion that the floor area of the portion of the exclusive Leased Premises so taken (less any additions thereto by reason of any reconstruction) bears to the original floor area of the exclusive premises, and Landlord shall, at its own cost and expense, make all necessary repairs or alterations to the Building in which the Leased Premises are located so as to constitute the portion of the Building not taken a complete architectural unit and the remaining exclusive Leased Premises a complete merchandising unit, but such work shall not exceed the scope of the work to be done in originally constructing said building. There shall be no abatement of rent during such restoration except to the extent otherwise provided in this paragraph. 3. All compensation awarded or paid upon such a total or partial taking of the fee of the Leased Premises shall belong to and be the property of the Landlord, whether such compensation be awarded or paid as compensation for diminution in value of the leasehold or to the fee; provided, however, that Landlord shall not be entitled to any award made to Tenant for loss of business, depreciation to, and cost of removal of stock and fixtures. 4. Each party agrees to execute and deliver to the other all instruments that may be required to effectuate the provisions thereof. Default 1. The occurrence of any of the following shall constitute an event of default: a. Delinquency by the Tenant in payment of any rent under this Lease for a period of ten (10) days from the date such rent became due and payable. b. Delinquency by the Tenant in the performance of or compliance with any of the other obligations of Tenant contained in this Lease, for a period of twenty (20) days after written notice thereof from Landlord to Tenant. 10 Docusign Envelope ID: 2499684A-COFE-866B-839F-38B4124OE4A9 c. Filing by or against the Tenant in any court pursuant to any statute either of the United States or of any state, of a petition or bankruptcy or insolvency, or for reorganization, or for the appointment of a receiver or trustee, of all or a portion of the Tenant's property, if within ninety (90) days after the commencement of any such proceedings involving the Tenant such petition shall not have been dismissed. 2. In the event of default innon-payment of rent as defined in Paragraph 1 a) above, this Lease shall automatically terminate on the date specified in the Landlord's three (3) day notice for payment or rent or surrender of possession of the Premises under Section 13-40404(d) (1973 CRS), if Tenant fails to pay such rent as demanded in said notice. 3. Upon the expiration of this Lease pursuant to the preceding subparagraph, the Tenant shall peacefully surrender the Leased Premises to the Landlord, and the Landlord upon or at any time after any such expiration, may, without further notice, reenter the Leased Premises and repossess it by force, summary proceedings, ejectment or otherwise, and must dispossess the Tenant and remove the Tenant and all other persons and property from the Leased Premises, and may have, hold and enjoy the Leased Premises and the right to receive all rental income therefrom. 4. At any time after such expiration, the Landlord may relet the Leased Premises or any part thereof, in the name of the Landlord or otherwise for such term (which may be greater or less than the period which would otherwise have constituted the balance of the term of this Lease) and on such conditions as the Landlord, in the Landlord's absolute discretion, may determine, and may collect and receive the rents therefor. The Landlord shall in no way be responsible or liable for any failure to collect any rent due upon such reletting. 5. No such termination of this Lease shall relieve the Tenant's liability and obligations under this Lease, and such liability and obligations shall service any such termination. In the event of any such termination, the Tenant shall pay to the Landlord the rent required to be paid by the Tenant up to the time of such Termination, and thereafter the Tenant, until the end of what would have been the term of this Lease in the absence of such termination, shall be liable to the Landlord for, and shall pay to the Landlord as and for liquidated and agreed damages for the Tenant's default the following: a) The equivalent of the amount of the rent which would be payable under this Lease by the Tenant if the Lease were still in effect, less b) The net proceeds of any reletting effected pursuant to the provisions of the preceding paragraph, after deducting all of the Landlord's expenses in connection with such reletting, including, without limitation, all reasonable repossession costs brokerage commission, legal expenses, attorneys' fees, costs and expenses of preparation for such reletting. i 11 Docusign Envelope ID: 2499684A-COFE-866B-839F-38B4124OE4A9 . bandonment 1. Tenant shall not vacate or abandon the Leased Premises at any time during the term of this Lease. Abandomnent shall be deemed to have occurred if Tenant is absent from the Leased Premises for more than twenty (20) days without having paid a monthly installment of the combined rent per Article III. If Tenant should violate this prohibition or be dispossessed of the Leased Premises involuntarily, by operation of law or otherwise, any personal property belonging to Tenant left on the Leased Premises shall be deemed to be abandoned, at the Landlord's option, or Landlord may store such property in Tenant's name and at Tenant's expense without notice to Tenant. 2. Upon abandonment of the Leased Premises, the Landlord at its election may reenter and relet the Leased Premises to the benefit of the Tenant without effecting a termination of the Lease and apply any rent received as a result of that reletting the amounts due Landlord from Tenant under the Lease. In the alternative, the Landlord upon abandonment of the Leased Premises may treat the Lease as being terminated. 3. The rights and remedies of the Landlord under this Article XIX are in addition to and not exclusive of any other right or remedy of Landlord herein given, or which may be permitted by law. ARTICLE XIIX Covenant of Quiet Enjoyment So long as the Tenant is not in default hereunder during the base term hereof and any renewal or extension hereof, the Landlord covenants that the Tenant shall peaceably and quietly occupy and enjoy the Leased Premises subject to the terms hereof. The Landlord warrants and agrees to defend the title to the Leased Premises, and further warrants that it has full authority to execute this Lease. ARTICLE �:IX Accord and Satisfaction No payment by Tenant or receipt by Landlord of a lesser amount than the rent herein provided shall be deemed to be other than on account of the earliest rent due and payable hereunder, not shall the endorsement or statement accompanying any check or payment as rent be deemed an accord and satisfaction, and Landlord may accept any such check or payment without a prejudice to the Landlord trying to recover the balance of such rent or pursue any other remedy provided in this Lease. ARTICLE XX Subordination Tenant agrees that this Lease Agreement shall be subordinate to any mortgage or deeds of trust that are now or hereafter may be placed upon said Leased Premises and to any and all advances made or to be made thereunder and to the interest thereon and all renewals, replacements and extensions thereof, provided the mortgagee or beneficiary named in said mortgages or deeds of trust shall agree to recognize the Lease of Tenant in the event of foreclosure if Tenant is not in default and shall attorn to such mortgagee. 12 Docusign Envelope ID: 2499684A-COFE-866B-839F-38B4124OE4A9 ARTICLE XXI Estoppel Certificates Tenant agrees at any time and from time to time, upon no less than ten (10) days' prior request by the Landlord, to execute, acknowledge and deliver to Landlord a statement in writing certifying that this Lease is unmodified and in full force and effect (or, if there have been modifications, that the same is in full force and effect as modified and stating the modifications), and the dates to which the fixed rent and other charges have been paid in advance, if any, and confirming Tenant's acceptance of the Premises, the commencement of the lease term, and the rent provided under the Lease, it being intended that such statement delivered pursuant to this paragraph may be relied upon by any prospective purchaser, mortgagee, or assignee of any mortgagee of the Air) mises or the Building. ARTICLE XXII Waiver One or more waivers of any covenant or condition by Landlord shall not be construed as a waiver of a subsequent breach of the same or any other covenant or condition, and the consent or approval by Landlord to or of any act by Tenant requiring Landlord's consent or approval shall not be deemed to waive or render unnecessary Landlord's consent or approval to or of any subsequent similar act by Tenant. The subsequent acceptance of rent hereunder by Landlord shall not constitute a waiver of any preceding breach by Tenant of any term, covenant or condition of this Lease other than the failure of Tenant to pay the particular rental so accepted, regardless of Landlord's knowledge of such preceding breach at the time of acceptance of such rent. No waiver of any provision of this Lease shall be effective unless it is in writing and signed by the Landlord. Hold Over If Tenant should remain in possession of the Leased Premises after the expiration of the Term and without executing a new lease, then such holding over shall be construed as a tenancy from month to month, subject to all the conditions, provisions and obligations of this Lease insofar as the same are applicable to a month to month tenancy. Surrender of Premises: Treatment of Tenant's Alterations at Expiration of Lease All alterations, additions, improvements, partitions, flooring, carpeting or fixtures, including, but not limited to light fixtures, electrical fixtures, and plumbing fixtures, which may be made or installed by either of the parties hereto upon the Leased Premises and which in any manner are attached to the floors, walls, windows, or ceilings are to be the property of the Landlord upon installation of any part thereof without disturbance or injury at the termination of this Lease, unless Landlord shall elect otherwise. Landlord shall make such election by giving notice in writing to Tenant prior to the expiration or other termination of this Lease, or any renewal or extension thereof. In the event the Landlord shall so elect, such alterations, installations, additions or improvements made by Tenant upon the Leased Premises as the Landlord shall so elect shall be removed by the Tenant and the Tenant shall restore the Premises to its original 13 Docusign Envelope ID: 2499684A-COFE-866B-839F-38B4124OE4A9 condition at the commencement hereof, normal wear and tear excepted, at its own costs and expense prior to the expiration or termination of the term hereof, or if the Tenant fails to do so at the Tenant's expense. Also, at the expiration of the lease term, Tenant shall remove all of his movable trade fixtures which shall not be the property of the Landlord under the foregoing provisions of this paragraph. The Tenant's obligations to perform the covenants contained in this Paragraph of this Lease shall survive the expiration or other termination of this Lease. ARTICLE �s;XV Tenant shall not erector install any exterior or interior window or door signs, advertising media, window or door lettering, or placards without Landlord's written consent. Tenant agrees to install an exterior sign which shall be in strict conformance with Landlord's sign criteria as to design, material, colors, location, size and style of lettering. The cost of such sign shall be the Tenant's sole expense. Tenant agrees not to use an advertising media or other media that shall be deemed objectionable to Landlord or other tenants, such as loudspeakers, phonographs, or radio broadcasts in a manner to be heard outside the Premises. Tenant shall not install any exterior lighting, decoration, painting, or awning, or make any changes to the exterior of the Leased Premises without Landlord's written consent. ARTICLE �;XVI Notices 1. All notices to be given with respect to this Lease shall be in writing. Each notice shall be sent by email or by registered or certified mail, postage prepaid and return receipt requested, to the party to be notified at the address set forth in the Lease Agreement or at such other address as either party may from time to time designate in writing. 2. Every notice shall be deemed to have been given at the time it shall be deposited in the United States mail in the manner prescribed herein. Nothing contained herein shall be construed to preclude personal service of any notice in the manner prescribed for personal service of a summons or other legal process. ARTICLE XXVII Attorney's Fees In the event of any litigation or• other action or proceeding between the parties hereto arising out of the performance ornon-performance of this Lease, or enforcement of any rights or remedies hereunder, including any indemnities herein contained, the prevailing party shall be entitled in such litigation, action or proceeding to also recover as party of any judgment, award or other relief, its reasonable attorneys' fees and costs incurred. In the event Landlord is asked to assign, subordinate, or sublet Leased Premises, all costs incurred by Landlord will be paid by Tenant, including all reasonable attorney fees. Docusign Envelope ID: 2499684A-COFE-866B-839F-38B4124OE4A9 ARTICLE 1%XVIII Lien on Tenant's Improvements and Personal Property Landlord shall have a first lien paramount to all others on every right and interest %J the Tenant in and to this Lease Agreement, and on any building or improvement on or hereafter placed on the Leased Premises, and on any furnishings, equipment, fixtures, or other persona property of any kind belonging to the Tenant, or the equity of the Tenant therein, on the Leased Premises. Such lien is granted for the purpose of securing the payment of rents, taxes, assessments, charges, liens, penalties, and damages herein covenanted to be paid by the Tenant, and for the purpose of securing the performance of all of the Tenant's obligations under this Lease. Such lien shall be in addition to all rights of the Landlord given under statutes of this State, which are now or shall hereinafter be in effect. Upon request of Landlord, Tenant shall execute such security agreement and financing statement as Landlord may deem necessary in order to perfect the lien agreed to herein. ARTICLE �� Miscellaneous Provisions If any portion of this Lease Agreement shall be declared invalid or unenforceable, the remainder of the Lease Agreement shall continue in full force and effect. Where necessary to carry out the meaning hereof, the singular shall mean the plural, the plural the singular, and any gender shall apply to all genders. This Lease and the General Conditions constitute the total understanding of the parties with respect to the subject matter hereof and no modification thereof may be made except by a writing signed by both of the parties. This Lease Agreement and all agreements herein contained shall bind the parties hereto and their heirs, personal representative's successors and assigns. Each term and each provision of this Lease Agreement shall be construed as and shall have the same force and effect as though made in the form of a covenant. This Lease Agreement shall be construed in accordance with the laws of the State of Colorado. YELLOW BRICK LEASE AGREEMENT GUARANTY OF LEASE FOR VALUE RECEIVED, and in consideration for, and as an inducement to the aforesaid Landlord to make the foregoing Lease Agreement with THE EARLY LEARNING CENTER as Tenant, the undersigned THE EARLY LEARNING CNETER, BOARD OF DIRECTORS, (in their official capacity and not individually or personally whatsoever), unconditionally guarantees the full performance and observance of all the covenants, conditions, and agreements therein provided to be performed and observed by Tenant, and expressly agrees that the validity of this agreement and the obligations of the guarantors hereunder shall in no wise be terminated, affected or impaired by reason of the assertion by Landlord against Tenant of any of the rights or remedies reserved to Landlord pursuant to the provisions of the within Lease or by the relief of Tenant from any of Tenant's obligations under the Lease by operation of law or otherwise (including, but without limitation, the rejection of the Lease in connection with proceedings under the bankruptcy laws now or hereafter enacted); the undersigned hereby waiving all suretyship defenses. 15 Docusign Envelope ID: 2499684A-COFE-866B-839F-38B41240E4A9 The undersigned further covenants and agrees that this guaranty shall remain and continue in full force and effect as to any renewal, modification, or extension of this Lease, whether or not the undersigned shall have received any notice of or consented to such renewal, modification or extension. The undersigned further agrees that his liability under this guaranty shall be primary, and that in any right of action which shall accrue to landlord under the Lease, landlord may, at Landlord's option, proceed against the undersigned and Tenant, jointly or severally, and may proceed against the undersigned without having commenced any action against or having obtained any judgment against Tenant. The undersigned further represents to Landlord as an inducement for Landlord to make the Lease that the undersigned owns 100% all of the entire outstanding capital stock of Tenant. It is agreed that the failure of Landlord to insist in any one or more instances upon a strict performance or observance of any of the terms, provisions or covenants of the foregoing Lease or to exercise any right therein contained shall not be construed or deemed to be a waiver or relinquishment for the future of such term, provision, covenant or right, but the same shall continue and remain in full force and effect. Receipt by Landlord of rent with knowledge of the breach of any provision of the foregoing Lease shall not be deemed a waiver of such breach. Except as maybe otherwise specifically provided in the Lease subletting, assignment, or other transfer of the within Lease, or any interest therein, shall not operate to extinguish or diminish the liability of the undersigned guarantors under this guaranty; and wherever reference is made to the liability of Tenant named in the within Lease, such reference shall be deemed likewise to refer to the undersigned guarantors. It is further agreed that all of the terms and provisions hereof shall inure to the benefit of the respective heirs, personal representatives, successors and assigns of Landlord, and shall be binding upon the heirs and assigns of the undersigned. IN WITNESS WHEREOF, the undersigned guarantor has caused this guaranty to be executed effective as of the 29 day of n n , 20-26 THE EARLY LEARNING CENTER BOARD PRESIDENT Date: May 29, 2026 Program address: 215 N Garmisch StAspen, CO 81611 16 Docusign Envelope ID: 2499684A-COFE-866B-839F-38B4124OE4A9 17 docusign. Certificate Of Completion Envelope Id: 2499684A-COFE-866B-839F-38B41240E4A9 Subject: Complete with Docusign: 6.3.2026_ELC_2026_lease_signed.pdf Source Envelope: Document Pages: 17 Signatures: 1 Certificate Pages: 4 Initials: 0 AutoNav: Enabled Envelopeld Stamping: Enabled Time Zone: (UTC-07:00) Mountain Time (US & Canada) Record Tracking Status: Original 7/15/2026 10:15:06 AM Security Appliance Status: Connected Signer Events Pete Strecker pete.strecker@aspen.gov City Manager Pete Strecker Security Level: Email, Account Authentication (None) Electronic Record and Signature Disclosure: Accepted: 7/16/2026 3:49:34 PM ID: e92c3729-cf71430b-ade2-bf421387b873 In Person Signer Events Editor Delivery Events Agent Delivery Events Intermediary Delivery Events Certified Delivery Events Carbon Copy Events Witness Events Notary Events Envelope Summary Events Envelope Sent Certified Delivered Signing Complete Completed Payment Events Holder: Nicole Henning nicole.henning@aspen.gov Pool: StateLocal Signature Signed by: pt f G fVY,&t 7753EO500940430... Signature Adoption: Pre -selected Style Using IP Address: 64,39,229.1 Signature Status Status Status Status Status Signature Signature Status Hashed/Encrypted Security Checked Security Checked Security Checked Status Electronic Record and Signature Disclosure Status: Completed Envelope Originator: Nicole Henning 427 Rio Grande Place Aspen, CO 81611 nicole.henning@aspen.gov IP Address: 64.39,229.1 Location: Docusign Timestamp Sent: 7/15/2026 10:16:43 AM Viewed: 7/16/2026 3:49:34 PM Signed: 7/16/2026 3:49:42 PM Timestamp Timestamp Timestamp Timestamp Timestamp Timestamp Timestamp Timestamp Timestamps 7/15/2026 10:16:43 AM 7/16/2026 3:49:34 PM 7/16/2026 3:49:42 PM 7/16/2026 3:49:42 PM Timestamps Electronic Record and Signature Disclosure created on: 5/27/2020 1:57:50 PM Parties agreed to: Pete Strecker EUECTRONIC RECORD AND SIGNATURE DISCU"SURE From time to time, City of Aspen we, us or Company) maybe required by law to provide to you certain written notices or disclosures. Described below are the terms and conditions for providing to you such notices and disclosures electronically through the DocuSign system. Please read the information below carefully and thoroughly, and if you can access this information electronically to your satisfaction and agree to this Electronic Record and Signature Disclosure (ERSD), please confirm your agreement by selecting the check -box next to `I agree to use electronic records and signatures' before clicking `CONTINUE' within the DocuSign system. Getting paper copies At any time, you may request from us a paper copy of any record provided or made available electronically to you by us. You will have the ability to download and print documents we send to you through the DocuSign system during and immediately after the signing session and, if you elect to create a DocuSign account, you may access the documents for a limited period of time (usually 30 days) after such documents are first sent to you. After such time, if you wish for us to send you paper copies of any such documents from our office to you, you will be charged a $0.00 per -page fee. You may request delivery of such paper copies from us by following the procedure described below. Withdrawing your consent If you decide to receive notices and disclosures from us electronically, you may at any time change your mind and tell us that thereafter you want to receive required notices and disclosures only in paper format. How you must inform us of your decision to receive future notices and disclosure in paper format and withdraw your consent to receive notices and disclosures electronically is described below. Consequences of changing your mind If you elect to receive required notices and disclosures only in paper format, it will slow the speed at which we can complete certain steps in transactions with you and delivering services to you because we will need first to send the required notices or disclosures to you in paper format, and then wait until we receive back from you your acknowledgment of your receipt of such paper notices or disclosures. Further, you will no longer be able to use the DocuSign system to receive required notices and consents electronically from us or to sign electronically documents from us. All notices and disclosures will be sent to you electronically Unless you tell us otherwise in accordance with the procedures described herein, we will provide electronically to you through the DocuSign system all required notices, disclosures, authorizations, acknowledgements, and other documents that are required to be provided or made available to you during the course of our relationship with you. To reduce the chance of you inadvertently not receiving any notice or disclosure, we prefer to provide all of the required notices and disclosures to you by the same method and to the same address that you have given is. Thus, you can receive all the disclosures and notices electronically or in paper format through the paper mail delivery system. If you do not agree with this process, please let us know as described below. Please also see the paragraph immediately above that describes the consequences of your electing not to receive delivery of the notices and disclosures electronically from us. How to contact City of Aspen: You may contact us to let us know of your changes as to how we may contact you electronically, to request paper copies of certain information from us, and to withdraw your prior consent to receive notices and disclosures electronically as follows: To contact us by email send messages to: tara.nelson@cityofaspen.com To contact us by paper mail, please send correspondence to: City of Aspen 130 S Galena Aspen, 81611-1902 To advise City of Aspen of your new email address To let us know of a change in your email address where we should send notices and disclosures electronically to you, you must send an email message to us at tara.nelson@cityofaspen.com and in the body of such request you must state: your previous email address, your new email address. We do not require any other information from you to change your email address. If you created a DocuSign account, you may update it with your new email address through your account preferences. To request paper copies from City of Aspen To request delivery from us of paper copies of the notices and disclosures previously provided by us to you electronically, you must send us an email to tara.nelson@cityofaspen.com and in the body of such request you must state your email address, full name, mailing address, and telephone number. We will bill you for any fees at that time, if any. To withdraw your consent with City of Aspen To inform us that you no longer wish to receive future notices and disclosures in electronic format you may: i. decline to sign a document from within your signing session, and on the subsequent page, select the check -box indicating you wish to withdraw your consent, or you may; ii. send us an email to tara.nelson@cityofaspen.com and in the body of such request you must state your email, full name, mailing address, and telephone number. We do not need any other information from you to withdraw consent.. The consequences of your withdrawing consent for online documents will be that transactions may take a longer time to process.. Required hardware and software The minimum system requirements for using the DocuSign system may change over time. The current system requirements are found here: hLtps:Hsupport.docusi ng com/guides/signer- ui�de- signing_-system-requirements. Acknowledging your access and consent to receive and sign documents electronically To confirm to us that you can access this information electronically, which will be similar to other electronic notices and disclosures that we will provide to you, please confirm that you have read this ERSD, and (1) that you are able to print on paper or electronically save this ERSD for your future reference and access; or (ii) that you are able to email this ERSD to an email address where you will be able to print on paper or save it for your future reference and access. Further, if you consent to receiving notices and disclosures exclusively in electronic format as described herein, then select the check -box next to `I agree to use electronic records and signatures' before clicking `CONTINUE' within the DocuSign system. By selecting the check -box next to `I agree to use electronic records and signatures', you confirm that: • You can access and read this Electronic Record and Signature Disclosure; and • You can print on paper this Electronic Record and Signature Disclosure, or save or send this Electronic Record and Disclosure to a location where you can print it, for future reference and access; and • Until or unless you notify City of Aspen as described above, you consent to receive exclusively through electronic means all notices, disclosures, authorizations, acknowledgements, and other documents that are required to be provided or made available to you by City of Aspen during the course of your relationship with City of Aspen.