HomeMy WebLinkAbout900333.tiff RESOLUTION
RE: APPROVE 30-YEAR LEASE AGREEMENT FOR SAND, GRAVEL, AND
AGGREGATE WITH HALL-IRWIN CONSTRUCTION COMPANY AND AUTHORIZE
CHAIRMAN TO SIGN
WHEREAS, the Board of County Commissioners of Weld County,
Colorado, pursuant to Colorado statute and the Weld County Home
Rule Charter, is vested with the authority of administering the
affairs of Weld County, Colorado, and
WHEREAS, Weld County is in need of sand, gravel, and
aggregate for the construction of County Roads, and
WHEREAS, a Lease Agreement for Sand, Gravel, and Aggregate
has been presented to the Board, said Agreement being with
Hall-Irwin Construction Company who owns certain property
described as follows:
All that part of the Northeast Quarter of the Southeast
Quarter and all that part of the Southeast Quarter of
the Northeast Quarter of Section 31 , Township 6 North,
Range 66 West of the 6th P.M. , Weld County, Colorado,
lying South of the Cache LaPoudre River, being 65 acres
more or less.
WHEREAS, after review, the Board deems it advisable to
approve said Lease Agreement which is for a period of 30 years ,
with the further terms and conditions being as stated in the
Agreement, a copy of which is attached hereto and incorporated
herein by reference.
NOW, THEREFORE, BE IT RESOLVED by the Board of County
Commissioners of Weld County, Colorado, that the Lease Agreement
for Sand, Gravel, and Aggregate with Hall-Irwin Construction
Company be, and hereby is, approved.
BE IT FURTHER RESOLVED by the Board that the Chairman be, and
hereby is, authorized to sign said Lease Agreement.
900333
Page 2
RE: LEASE AGREEMENT - HALL-IRWIN CONSTRUCTION COMPANY
The above and foregoing Resolution was , on motion duly made
and seconded, adopted by the following vote on the 16th day of
April, A.D. , 1990 .
BOAR OF COUNTY COMMISSIONERS
ATTEST: / ^ WEL OUNTY, CO ORADO
Weld County Cqerk and Recorder
and Clerk to the Board Gene R. Bran ner, Chairman
sC
B I �p QC1/14--a2org
, Gee ennedy, Pro-
�Deputy CountygClerk
APPROVED AS TO FORM: Constanc� HaYber�t
/ k .,
� /'
ounty Attorn Go : . L
900333
AR221b105
4/13/90-1
LEASE AGREEMENT FOR SAND, GRAVEL AND AGGREGATE
14
Thi, Lease Agreement made and entered into this /, day
of /fpg ! I , 1990 , by and between HALL-IRWIN CON-
STRUCTION COMPANY, a Colorado Corporation, with offices
located at 3026 Fourth Avenue, Greeley, CO 80631 , hereafter
known as "Lessor, " and WELD COUNTY, COLORADO, by and through
the Board of County Commissioners of Weld County, located at
915 Tenth Street, Greeley, CO 80631 , hereafter known as
"Lessee. "
o U Background of Agreement. The following background
statements are made to aid in the understanding and inter-
r' pretation of this Agreement:
A. Lessor owns a sand, gravel and aggregate mine on
00 its property located in Section 31 , Township 6 North, Range
66 West of the 6th P.M. , Weld County, Colorado, hereafter
A-w known as the "Herbst Pit. "
o B. Lessee leased the sand, gravel and aggregate in a
rj portion of the Herbst Pit by virtue of a Lease Agreement dated
Na deg,/ /6 , /994
La
O 4 C. Lessee desires to lease additional property adjacent
to the Herbst Pit which is not presently owned by Lessor nor
cp permitted by a Use by Special Review Permit which is described
u
as follows :
O Z
H
All that part of the Northeast Quarter of the Southeast
o a4 Quarter and all that part of the Southeast Quarter of
the Northeast Quarter of Section 31 , Township 6 North,
Lrio Range 66 West of the 6th P.M. , Weld County, Colorado,
w lying South of the Cache LaPoudre River, being 65 acres
1p
H z more or less , hereafter known as the "Additional Lease
z
Property. "
U z D. Lessor is presently the owner of eleven (11) shares
a of W. R. Jones Ditch Company Water Stock, all or a part of
which will be necessary to properly augment the mining
� CO operation on the Additional Lease Property" and which is
N d hereafter known as the "W. R. Jones Ditch Company Water. "
No
w NOW, THEREFORE, in consideration of the mutual promises
and covenants contained herein, Lessor hereby leases to Lessee
the Additional Lease Property and Lessee agrees to lease such
property under the terms and conditions set forth herein.
1 . Description of location and minerals to be removed.
Lessee shall have the right, but not the obligation, to remove
sand, gravel and aggregate from the Additional Lease Property.
900333
2 . Reservation of other minerals to Lessor. The
Lease pertains only to sand and gravel . All other minerals
are reserved to the Lessor.
3 . Term. This Lease is effective as of the date it is
executed and shall expire exactly thirty (30) years there-
after.
4. Rent. The rent for this Lease Agreement is
$179 ,000 . 00 payable entirely in advance at the time of
execution of this Agreement. Lessee shall pay no royalties
to the Lessor during the time of this Lease Agreement.
o U 5 . Additional Rent. In addition to the amount shown in
Paragraph 4 , Lessee shall pay the following amounts :
N
o
(a) Lessee shall pay all taxes connected with the
q
,a property including , but not limited to, ad valorem taxes ,
CD 0 3 if any.
•
h w (b) Lessee shall pay all general and special water
assessments on the W. R. Jones Ditch Company Water or on
o any water connected with the property or used in the
a property augmentation plan.
t+ (c) Lessee shall pay all costs of water if necessary,
o x 11,,JJ ^' a ' , for an augmentation plan
o a beyond the eleven (11) shares of W. R. Jones Ditch
rn u Company Water .
c H (d) Lessee shall pay all the costs to reclaim the area
1/40 F pursuant to the Reclamation Plan developed by Lessor and
o filed with the State of Colorado Minded Land Reclamation
Board, together with any changes required during the term
0 w of the Lease.
-4z (e) Lessee shall pay all costs for additional bonding
N 4 to permit Lessee to remove materials from the property,
if required.
W
x (f) Lessee shall pay all costs connected with any
amendment to the Special Use Permit Plan initially
CD ON
1/40 LI1 developed by Lessor.
N V'
.I O
(g) Lessee shall pay all costs to remove the material .
N
6. Payment of Rent. All rent shown in Paragraph 4,
above, shall be paid at the time of the execution of this
Lease. All rent shown in Paragraph 5, above, shall be paid
within ten (10) days after billing by Lessor to Lessee. Any
money not paid when due, shall accrue interest at 18% per
annum.
2
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7 . Title. This Lease shall be taken subject to all
easements, restrictions , and covenants of record. Prior to
the execution of this Lease, Lessee, at its cost, may examine
title to insure that it is adequately protected from adverse
claims and may review the title insurance commitment given to
Lessor in connection with its purchase of the property.
No
ou
0 8 . Limitation on Warranties. No warranties of title
M o or otherwise shall extend by operation of this Lease from
0 Lessor to Lessee of any kind. Lessor makes no warranties as
to the quality or quantity of sand, gravel and aggregate on
0 3 the property or its fitness as a sand, gravel and aggregate
mine.
orz
'}q 9 . Promises of Lessor. Lessor shall do the following
p making such judgments and decisions in the process that are
proper in Lessor ' s sole discretion:
u, a4
'2 (a) Make application for a Special Use Permit for the
Additional Lease Property so that it can be used by
o a Lessee as a sand, gravel and aggregate mine similar to
o a the Herbst Pit.
m u
cz (b) Attempt to provide an augmentation plan using up to
o
eleven (11) shares of the W. R. Jones Ditch Company Water
° E' (all water beyond the eleven (11) shares of the W. R.
a Jones Ditch Company Water shall be provided by Lessee if
,n a necessary to provide a proper augmentation plan) .
ow
� W
vo (c) Attempt to develop a Reclamation Plan and attempt
N z to obtain approval of the Reclamation Plan from the
`l < Minded Land Reclamation Board.
a g (d) Attempt to do all those items necessary to cause the
Additional Lease Property to be available as a sand,
gravel and aggregate mine.
VD 1/40
CV 'Cr
0 10 . Risks. While Lessor will attempt to do all those
m w items set out in Paragraph 9 above, Lessee understands that
approvals from governmental authorities and, specifically,
approval of a new Special Use Permit, is subject to the risk
that it will not be approved. All risks connected with
nonapproval for any reason of the said Special Use Permit, the
Mined Land Reclamation Plan, the Augmentation Plan or any
other governmental authority are assumed by Lessee. Lessee ' s
sole and exclusive remedy in the event it does not believe
Lessor has fully performed the tasks set forth in Paragraph
9 shall be to terminate this Lease subject to the Option to
Purchase set forth in Paragraph 17 , below, if then still in
effect.
3
9k-0333
11. Reclamation. Lessee shall perform all reclamation
required by any reclamation plan filed with the State of
Colorado Mined Land Reclamation Board.
12 . Indemnity. Lessee shall hold harmless and indemnify
Lessor for any and all negligent acts and/or omissions for any
N intentional torts committed by Lessee, its agents and employ-
.= U ees including, but not limited to, indemnification of Lessor ' s
attorney' s fees and costs.
U
o 13 . Contingency. This Lease is contingent only upon
w purchaser closing on its Contract to buy the Additional Lease
o
o 3 Property from the present owner of such property. If Lessor,
a after using due diligence, is not able to purchase the
"W Additional Lease Property pursuant to such Contract, this
o Lease shall automatically terminate and both parties relieved
o of all responsibilities under this Agreement. Termination of
,n a this Agreement shall not affect the Agreement between Lessor
'a and Lessee for the Herbst Pit.
.. w
rn
a 14 . Non—assignment. The Lessee shall not assign or
o I-1
sublease this Lease or any portion of this Lease, nor shall
rn u it sublease the property to any person, firm or corporation
z without the prior written consent of Lessor.
O H
• H 15 . Compliance with Special Use Permit. The Lessee
o a shall be required to follow all requirements and standards of
N ] any Special Use Permit obtained by Lessor on the property.
oW
16 . Bond. Lessee shall be responsible for the addi-
tional cost of any bond necessary to permit Lessee, during the
term of this Lease, to remove sand, gravel and aggregate from
the Additional Lease Property and all water rights connected
w x with it or the amount necessary to pay the increased bonds
necessary if such increase is occasioned by adding the
c .-4 Additional Lease Property to the Herbst Pit.
'o4
rIO 17. Option to Purchase.
aaw
(a) Grant of Option to Purchase Land and Water. Subject
to the terms of this Option, Lessee shall have the right
to purchase the Additional Lease Property together with
eleven (11) shares of the W. R. Jones Ditch Company Water
Stock.
(b) Expiration of Option. This Option to Purchase shall
expire if not exercised within two (2) years of the
effective date of the Lease as shown on Page 1 .
(c) Option Amount. The purchase price for the Option
shall be One Dollar ($1 .00) .
4
900333
(d) Method of Exercising Option. Lessee shall give
written notice to Lessor advising of the date, time and
place for a closing to occur which closing date shall not
be less than twenty (20) days from the date of delivery
of such notice and such closing date shall not extend
beyond the term of the Option set forth in Paragraph (b)
above.
(e) Exercise of Option. If the Option is exercised, all
of Lessee ' s promises, covenants, and indemnification
shall survive closing of the transfer of ownership of
property to Leis j.
ooU (f) Deed. lf, such c,_losing occurs, Lessor shall transfer
\ o r ram
property by uit Cla Deed to Lessee, subject to taxes
� for the current year , subject to liens , encumbrances,
q rights-of-way restrictions and covenants , and with no
o w warranties of any kind.
oZ
o x (g) Materials. If the Option is exercised, Lessor will
A44 transfer to Lessee all of its surveys, maps, soil
ostudies, topographical information and materials con-
o nected with the property without additional cost.
in
CC
(h) Transfer of Permit. In the event of the exercise
o of the Option, Lessee shall not operate the property
under any permit standing in the name of Lessor or
operate under any bond standing in the name of Lessor;
rn O nor shall Lessee operate the mine under any other
z governmental permit or plan using Lessor ' s name.
oH 18 . No Liens. Lessor shall not permit any liens to be
o filed against the Additional Lease Property.
o w 19 . Default. Time is of the essence of this Agreement.
-I 44
(a) By Lessor: If Lessor shall default in compliance
N with any of the provisions of this Agreement, Lessee' s
o
r sole and exclusive remedy shall be to terminate this
u x Lease subject only to retaining the Option to Purchase
the Additional Lease Property and water pursuant to
koN Paragraph 17 , above, if then still in effect.
N d
r-, (b) By Lessee: Should Lessee be in default of any of
mw the terms or conditions of this Agreement, Lessor shall
have the right (in addition to any other remedy to which
Lessor is entitled under this Lease) to (1) terminate the
Agreement, including the Lease of property and The Option
to Purchase shown in Paragraph 17 , above, (2), sfor
specific performance or damages , or both. In addition,
any monies not paid by Lessee to Lessor may be recovered
5
900333
in a separate action for money damages . Each of the
foregoing remedies are nonexclusive.
(c) In the event of litigation between Lessor and Lessee
arising out of this Agreement, the court shall award the
prevailing party all reasonable costs and expenses ,
including attorneys ' fees.
o
0 U
0 20 . Miscellaneous.
'c o
0 (a) Governing Law. This Agreement shall be
o governed by and construed in accordance with the
o w laws of the State of Colorado.
03
o a (b) Entire Agreement. This Agreement sets forth
n athe entire understanding and agreement of the
o parties hereto with regard to the subject matter
w hereof in lieu of any prior agreement, discussion
uia or understanding and may not be amended except in
`:: w writing and executed by the party against which it
a is sought to be enforced.
o P4
a
o a (c) Inurement. The terms and provisions hereof
mu
shall inure to the benefit of and be binding upon
c• z the parties hereto, their respective heirs , personal
w representatives , successors and assigns .
H
o o a (d) Force Majeure. Neither party hereto shall be
,n a liable for any loss or damage due to any delay in
o--I w the due performance of the terms hereof, except for
the payment of money, by reason of strikes, lockouts
el
z and labor troubles, fires , riots, wars , embargoes
0 and civil commotion or acts of God. Any such delay
0
a shall extend performance only so long as such event
a is in progress.
w M up (e) Survival. The provisions of this Agreement
N shall survive closing.
w w WELD COUNTY, COLORADO, by and
through the Board of County
Commi cl-
s oners of Weld County
ATTEST "�+` '
By' 45
Weld�4 I 1,¢lk" and Gene R. Brantner, Chairman
Reco ` ,�, C1
to
the a o t"►�' r,,,s,„y
oticS ( I
900333
HALL-IRWIN CONSTRUCTION COMPANY,
a Colorado Corporation,
ATTEST: j; Th -77 ;f •
tlM I j,•s ire�]{ Vice President Its es e t , /'t` 41/44 ,o
f tz, 4 jvc
• « 41
(CORPORATE SEAL) S v 6 O
STATE OF COLORADO)
oU ) SS.
o_ COUNTY OF WELD )
r- O
The foregoing instrument was ack owledged before me this
A / day of II re i , 1990 , by c,L c-e, (c), / �3 /(
0 President o Hall-Irwin Construction Company, a Colorafli.,,j
Corporation. ♦ .• ra
hw oY 3I )
Witness my hand and seal . at re
o m\Vd
W My commission expires : (1 IL i4 i1y 3 .+ r‘, v, •
o Notary P�txb/li,CI
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900333
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