HomeMy WebLinkAbout20192511.tiffAugust 6, 2019
Petitioner:
DCJ PROPERTIES LLC
917 S MAIN ST STE 100
LONGMONT, CO 80501-6400
CLERK TO THE BOARD
PHONE (970) 400-4226
FAX (970) 336-7233
WEBSITE: www.weldaov.com
1150 O STREET
P.O. BOX 758
GREELEY CO 80632
Agent (if applicable):
RE: THE BOARD OF EQUALIZATION 2019, WELD COUNTY, COLORADO
CONFIRMATION OF WITHDRAWAL REQUEST
Docket #: 2019-2511 Appeal #: 2008224302
Dear Petitioner:
Based upon information furnished to the Weld County Board of Equalization, we understand that you
have withdrawn the petition challenging the valuation of the below account number(s). Please be
informed that a withdrawn petition precludes any further challenge to the valuation of the below account
number(s) for this assessment period. Therefore, the Board of Equalization took no action on your petition
and the assessed value remains as set by the Assessor.
Actual Value as
Account # Decision Determined by Assessor
R4846807 Withdrawn $2,250,000
Very truly yours,
BOARD OF EQUALIZATION
aLeIG'G.
Esther E. Gesick
Clerk to the Board
Weld County Board of Commissioners
and Board of Equalization
cc: Brenda Dones, Weld County Assessor
Chloe Rempel
From:
Sent:
To:
Subject:
Jason Flynn <flynn@catalystpropertytax.com>
Monday, July 1, 2019 5:10 PM
CTB-County Board of Equalization
FW: 11372 Business Park Circle R4846807
Caution: This email originated from outside of Weld County Government Do not click links or open attachments unless you recognize the
sender and know the content is safe.
Esther and Millie, please use this email to withdraw the BOE hearing request for R4846807
Thank you
Jason Flynn
Catalyst Property Tax Consultants, LLC
720-744-3237
Flynn@catalystpropertytax.com
Get Outlook for iOS
From: Millie Channell <mchannell@weldgov.com>
Sent: Monday, July 1, 2019 3:57 PM
To: Jason Flynn
Subject: 11372 Business Park Circle R4846807
Hi Jason,
Please email directly to Esther and Cc me on the withdraw.
1. Withdrawals — Esther has requested that if a taxpayer agrees to withdraw, the appraiser needs to do one of the
following:
Have the taxpayer email the request to Withdraw directly to weld-cboe.co.weld.co.us and Cc the appraiser
Thank you.
Millie
1.
o19- asi l
ASO1O3
✓KiPP.ie Usameee
Property Appraiser
Commercial Division
Weld County Assessor's Office
(970) 400-3685
mchannell@weldgov.com
Confidentiality Notice: This electronic transmission and any attached documents or other writings are intended only for the person
or entity to which it is addressed and may contain information that is privileged, confidential or otherwise protected from disclosure.
If you have received this communication in error, please immediately notify sender by return e-mail and destroy the communication.
Any disclosure, copying, distribution or the taking of any action concerning the contents of this communication or any attachments
by anyone other than the named recipient is strictly prohibited.
2
Thank you for submitting an appeal to the Weld County Board of Equalization. We will review the
information submitted and you will receive a date to appear before the board.
Contact Information:
Contact Name: Jason Flynn
Contact Email: flynn@catalystpropertytax.com
Contact Phone: 720-744-3237
Appeal Submitted: 03:26 PM July 01, 2019
Appeal submitted for:
R4846807 - DCJ PROPERTIES LLC
11372 BUSINESS PARK CIR, FIRESTONE
Legal: FIR 4DCJBP L5 DEL CAMINO JUNCTION BUSINESS PARK 4TH MINOR
Reason: Value Too High - Leased fee valuation via direct capitalization of financials indicates the
value is too high. I look forward to working with you. Thank you
Estimate of Value: $1,500,000.00
Document(s) Submitted:
Account: All Accounts - 917 S Main SOA 2019-2020 - signed.pdf
Account: All Accounts - 11372 protest package 2019 (8 files merged).pdf
Account: R4846807 - R4846807_INITIAL PROTEST.pdf
You have selected the following Date Preferences:
Thursday, August 1, 2019, from 9:00 a.m. to 12:00 p.m.
Thursday, August 1, 2019, from 1:30 p.m. to 3:30 p.m.
Friday, August 2, 2019, from 9:00 a.m. to 12:00 p.m.
Friday, August 2, 2019, from 1:30 p.m. to 4:30 p.m.
Monday, August 5, 2019, from 10:30 a.m. to 12:00 p.m.
The Appeal process can take several weeks for us to complete. You will receive a written decision
on your appeal within five (5) working days of your hearing.
We thank you for your submittal.
Weld County Board of Equalization
2019-2511
Aso 1O3
Thank you for submitting an appeal to the Weld County Assessor's Office. We will review the
information submitted and if we have questions we will contact you at one of the following:
Contact Information:
Contact Name: Jason Flynn
Contact Email: flynn@catalystpropertytax.com
Contact Phone: 720-744-3237
Appeal Submitted: 11:04 AM June 01, 2019
Appeal submitted for:
R4846807 - DCJ PROPERTIES LLC
11372 BUSINESS PARK CIR, FIRESTONE
Legal: FIR 4DCJBP L5 DEL CAMINO JUNCTION BUSINESS PARK 4TH MINOR
Reason: Value Too High - Leased fee valuation via direct capitalization of financials indicates the
value is too high. I look forward to working with you. Thank you
Estimate of Value: $1,500,000.00
Document(s) Submitted:
Account: All Accounts - 917 S Main SOA 2019-2020 - signed.pdf
Account: All Accounts - 11372 protest package 2019 (8 files merged).pdf
The Appeal process can take several weeks for us to complete. We will mail a decision on your
appeal by June 30th for real property and by July 10th for business personal property and/or oil and
gas.
We thank you for your submittal.
Weld County Assessor's Office
(970) 400-3650
STATEMENT OF AGENCY
This Agreement made on May 31, 2019, by and between
JV Kane LLC
KANE Company LLC
DCJ Properties LLC
(Hereinafter "Taxpayer")
Catalyst Property Tax Consultants, LLC
2291 Arapahoe Avenue
Boulder, CO 80302
Telephone: 720.344.3237
(Hereinafter "Catalyst")
Taxpayer hereby appoints Catalyst as its representative and agent for assessment years 2019-2020 in connection with the
valuations for assessment of Taxpayer's real property in Colorado:
11372 Business Park Circle Firestone, CO
915 S Main Longmont, CO
917 S Main Longmont, CO
(Hereinafter "the Property")
Catalyst shall have full authority to:
1. Review all applicable records relating to the valuation for assessment for the Property;
2. Discuss the valuation for assessment of the Property with the County Auditor'Assessor, or any of his
representatives, as to the amount of valuation which Catalyst deems appropriate in the circumstances;
3. Accept on behalf of Taxpayer any valuation for assessment; and
4. Pursue any statutory remedies which Taxpayer may possess, before the County Auditor Assessor, County
Board of Equalization, State Assessment Appeals Board, or in binding arbitration, in Taxpayer's name and
on Ta. payer' i behalf with regard to the Property.
This appointment,cy shall remain in effect until revoked in writing by both parties.
By: _
YeAftt
Date:
(Signature)
(Printed Name)
STATE OF COUNTY OF
In , on the day of , 20 , before me, a Notary Public in and for the above
state and county, personally appeared , known to me or proved to be the person named in
and who executed the foregoing instrument, and being first duly sworn, such person acknowledged that he or she
executed said instrument for the purposes therein contained as his or her free and voluntary act and deed.
(SEAL)
CaL:oN l'!,_'pr�rt}' I',n.� + OW. Hiants„ LL1.
. 291 :spa it Vt' :A�'� J�11C
lif>uicl; i, (:{) ,;U'IU
NOTARY PUBLIC
My Commission Expires:
(11
Catalyst Property Tax Consultants
Saturday, June 1, 2019
ISSUES AND CONCERNS STATEMENT
11372 BUSINESS PARK CIRCLE
SCHEDULE NUMBER R4846807
2019 PROTEST
COUNTY VALUATION:
INCOME APPROACH (DIRECT CAPITALIZATION OF P&Ls):
REQUESTED VALUE:
$2,953,486
$1,490,775
$1,500,000
1.) 11372 is a single tenant industrial warehouse building built in 2014 consisting of 23,655 sf located in
Firestone.
2.) 2017 and 2018 financials documents, rent roll, and lease are provided in this packet.
3.) Direct capitalization of the Income and expense documents from the property result in a value below
the assessed value assigned for 2019.
4.) Income approach calculated using the following variables:
Average Gross Receipts from 2017 and 2018 $161,721
Property Taxes $47,183
Other Expenses incl. ins, utilities, cams, etc. $9,811
NOI $104,726
Add Taxes back in for Ad -Valorem
NOI Net of Taxes
Loaded Cap
Value
Jasolynn
Catalyst Proper Tax Consultants, LLC
720-744-3237
flynn@catalystpropertytax.com
Catalyst Property Tax Consultants. Lt.('
2291 Arapahoe Avenue
Boulder. CO 80302
$47,183
$151,910
10.19%
$1,490,775
Jason Flynn
720.744.3237
Flynn(' Cataly,tpropertytax.com
STATEMENT OF AGENCY
This Agreement made on May 31, 2019, by and between
JV Kane LLC
KANE Company LLC
DC! Properties LLC
(Hereinafter "Taxpayer")
Catalyst Property Tax Consultants, LLC
2291 Arapahoe Avenue
Boulder, CO 80302
Telephone: 720.344.3237
(Hereinafter "Catalyst")
Taxpayer hereby appoints Catalyst as its representative and agent for assessment years 2019-2020 in connection with the
valuations for assessment of Taxpayer's real property in Colorado:
11372 Business Park Circle Firestone, CO
915 S Main Longmont, CO
917 S Main Longmont, CO
(Hereinafter "the Property")
Catalyst shall have full authority to:
1. Review all applicable records relating to the valuation for assessment for the Property;
2. Discuss the valuation for assessment of the Property with the County Auditor Assessor, or any of his
representatives, as to the amount of valuation which Catalyst deems appropriate in the circumstances;
3. Accept on behalf of Taxpayer any valuation for assessment; and
4. Pursue any statutory remedies which Taxpayer may possess, before the County Auditor Assessor, County
Board of Equalization, State Assessment Appeals Board, or in binding arbitration, in Taxpayer's name and
on Taxpayer'} behalf with regard to the Property.
This appointment f ager cy shall remain in effect until revoked in writing by both parties.
By: (Signature)
n_ %(P nted Name)
Date:
STATE OF COUNTY OF
In , on the day of , 20 , before me, a Notary Public in and for the above
state and county, personally appeared , known to me or proved to be the person named in
and who executed the foregoing instrument, and being first duly sworn, such person acknowledged that he or she
executed said instrument for the purposes therein contained as his or her free and voluntary act and deed.
NOTARY PUBLIC
(SEAL) My Commission Expires:
t;cat��IN Pr,a1p('tty'I,1x
29 as. al) aho4.! :\ venue
t,. L I,t=
tr1 t
Property Summary and Appeal Request
County
Legal Owner Name
Legal Owner Address
Parcel Number(s)
Schedule Number
Situs Address, City, ST, Zip
SELECT FROM DROPDOWN IN ORDER
Type
Property Class
Lease Structure
Assessor Land SF
2019 Mill Rate
Tax Rate (mill/10)
2019 Effective Tax Rate
Last Purchase Date
Last Purchase $
Weld
DO Properties LLC
917 S Main Street, Suite 100 Longmont, CO 80501
131302310005
R4846807
11372 Business Park Circle
Industrial
R&D/Flex
NNN
129,809
99.579
9.958
2.89%
Assessor Value Year 2019
Economic Date of Value
Property Name
Complete Below to Populate Cap & Occupancy Rates
Building Type
Cap Rate
Submarket Stablized Occupancy
Year of Construction
Owner Improved SF
Actual Occupancy
2019 County Land Value
2019 County Imp. Value
2019 Total Value
LF Value
Requested Value
11372 Business Park Circle
Industrial_Warehouse
7.30%
95.0%
2014
23,655
$454,913
$2,498,573
$2,953,486
$1,491,099
$1,500,000
7/2/2013
389400
CoStar Weld
6/30/18
6/30/18
$3.50 Per SF
$105.63 Per SF
$124.86 Per SF
$63.04
$63.41
Actual Profit and Loss Statement Summaries
Total SF
Total Retail Rents
Roof Rent
Storage Rent
Contract Parking Income
Daily Parking Income
Parking Validations
Misc Income
Pass Through Income
Other Income
Total Income
Property Taxes
Other Expenses
Total Expenses
NOI
11372 Business Park Circle
23,655
2018 Per SF
$154,009 $6.51
$0 $0.00
$0 $0.00
$0 $0.00
$0 $0.00
$0 $0.00
$0 $0.00
$0 $0.00
$0 $0.00
2017 Per SF
$169,434 $7.16
$0 $0.00
$0 $0.00
$0 $0.00
$0 $0.00
$0 $0.00
$0 $0.00
$0 $0.00
$0 $0.00
$154,009 $6.51 $169,434 $7.16
$47,279 $2.00 $47,088 $1.99
$5,000 $0.21 $14,623 $0.62
$52,279 $2.21 $61,711 $2.61
$101,730 $4.30 $107,723 $4.55
Source: Owner provided income & expenses statements
Direct Capitalization of Actual 2017 and 2018 Net Incomes (Net RE Taxes)
NOI
Add - RE Taxes
NOI Net of RE Taxes
Cap Rate
Leased Fee Values
$101,730
$107,723
$47,279 $47,088
$149,009
10.19%
$1,462,623
Average $1,491,099
$154,811
10.19%
$1,519,574
9:42 AM
04/14/19
Accrual Basis
DCJ Properties LLC
Profit & Loss
January through December 2018
Ordinary Income/Expense
Income
Lease Early Termination
Rental / Lease Income
Total Income
Expense
Accounting Fees
Bank Service Charges
HOA Del Camino Junction
Insurance Expense
Interest Expense
Landscaping & Snow Removal
Legal Fees
Property Taxes
Repairs and Maintenance
Utilities
Total Expense
Net Ordinary Income
Other Income/Expense
Other Expense
Reimbursed Expenses
Total Other Expense
Jan - Dec 18
51225.88
102,783.74
154,009.62
1,165.00
88.70
0.00
3,743.00
101,825.94
643.60
0.00
-46,853.86
61.68
378.00
61,052.06
92,957.56
-7,331.10
-7,331.10
Net Other income 7,331.10
Net Income 100,288.68
Page 1
7:24 PM
04109/18
Accrual Basis
DCJ Properties LLC
Profit & Loss
January through December 2017
Ordinaryincome/Expense
income
Rental I Lease Income
Total Income
Expense
Accounting Fees
Amortization -Lease Commission
Bank Service Charges
Depreciation Expense
HOA Del Camino Junction
Insurance Expense
interest Expense
Landscaping & Snow Removal
Legal Fees
Property Taxes
Repairs and Maintenance
Taxes - Property
Utilities
Total Expense
Net Ordinary Income
Other Income/Expense
Other Expense
Reimbursed Expenses
Total Other Expense
Net Other Income
Net Income
Jan - Dec 17
189,434.80
169,434.80
1,125.00
8,735.00
60.00
36,339.00
2,400.00
3,896.00
104,346.81
280.00
325.00
0.00
6,149.92
47,088.13
387.00
211,131.86
-41,697.06
-5,977.08
-5,977.08
5.977.08
-35,719.98
Page 1
EXHIBIT
Rent Roll Summary
Dec -18
11372 Business Park Circle
Tenant
Peak Completions
Totals/Average Weighted Rent
Total Vacant
Total Square Feet
Occupancy
Start End Improved Lease Annual Annual
Suite Date Date SF Type Rent Rent/SF
7/1/14 23,500 $179,775 $7.65
23,500
0
23,500
100%
$0
$0
$0
$o
$179,775 $7.65
Source: Owner provided rent roll.
OFFICE/INDUSTRIAL LEASE
Basic Lease Information
Date: July 1', 2014
For Purposes of the Lease Agreement executed by the parties referred below, the following terms shall
have the following definitions:
Landlord:
Tenant:
Premises:
Property:
Germ:
Commencement Date:
Base Rent Commencement:
Expiration Date:
Year I Base Rent:
Base Rent Escalations:
Tenant's Percentage Share:
Security Deposit:
Landlord's Payment Address:
Permitted Use of the Premises:
Tenant's Address:
Real Estate Broker(s):
Exhibit A -
Landlord
1 Cilull I:
Work Letter
DCJ Properties, LLC
Peak Completions Technologies, Inc.
Approximately 23,500 square feet of the single story building located at
11372 Business Park Circle, Firestone, Colorado
The 23,500 square foot building located at 11372 Business Park Circle,
Firestone, Colorado
60 Months Subject to the terms of Paragraph 2.1
July I ", 2014 Subject to the terms of Paragraph 2. I
July I ", 2014 — Subject to the terms of Paragraph 2.1
60 months from Commencement Date Subject to the terms of
Paragraph 2.1
$7.00 per square foot t Additional Rent of NNN (NNN's are currently
estimated at $2.49 PSF)
The Base Rent shall escalate per the following schedule:
Year 2: $7.21 per square foot
Year 3: $7.43 per square foot
Year 4: $7,65 per square foot
Year 5: $7.88 per square foot
100.00%
$18,600.00
917 South Main Street, Suite 100, Longmont, Colorado 80501
Oil and gas equipment storage and maintenance
7710 West Highway 80, Midland, Texas 79706
Landlord's Agent: Ed Kancmoto, CCIM & Keith Kanetnoto
"tenant's Agent: Kirk Vanino
Exhibit B - Lease Option
Exhibit C - Confidentiality Akteement
:null 1,'1
The foregoing Basic Lease Information is incorporated in and made a part of the Lease to which
it is attached. If there is any conflict between the Basic Lease Information and the Lease, the Basic Lease
Information shall control.
1.1 Lease of Premises
2.1 Term of Lease
2.2 holding Over
TABLE OF CONTENTS:
ARTICLE 1 Premises
ARTICLE 2 Term
ARTICLE 3 Rent
3 1 Monthly Base Rent
3.2 Additional Rent
3.3 Payment of Additional Rent
3.4 Security Deposit
3.5 Late Payment
3.6 Other Taxes Payable by Tenant
3.7 Payment Address
3.8 No Accord and Satisfaction
ARTICLE 4 Use of the Premises
4,1 Permitted Use
4.2 Environmental Definitions
4.3 Environmental Requirements
4.4 Compliance With Law
4.5 Rules and Regulations
4.6 Entry by Landlord
ARTICLE 5 Utilities and Services
5.1 Tenant's Responsibilities
ARTICLE 6 Maintenance and Repairs
6.1 Obligations of landlord
6.2 Obligations of Tenant
ARTICLE 7 Alteration of the Premises
7.1 No Alterations by "Tenant
7.2 Landlord's Property
ARTICLE 8 Indemnification and Insurance
8.1 Damage or Injury
8.2 Insurance Coverages and Amounts
8.3 Insurance Requirements
8.4 Subrogation
8.5 Landlord Insurance Requirements
ARTICLE 9 Assignment or Sublease
9.1 Prohibition
9.2 Landlord's Consent or Termination
9.3 Completion
Landlord
Tenant- KO
1
2
2
2
4
5
5
5
5
5
6
6
6
7
7
7
7
7
8
8
9
9
9
10
10
10
9.4 Tenant Not Released I I
ARTICLE 10 Events of Default and Remedies
10.1 Default by Tenant
10.2 Termination
10.3 Continuation
10,4 Remedies Cumulative
10.5 Tenant's Primary Duty
10.0 Abandoned Property
10.7 Landlord Default
11
12
12
12
12
13
13
ARTICLE 11 Damage or Destruction
11.1 Restoration 13
I',.2 Termination of Lease 13
ARTICLE 12 Eminent Domain
12.1 Condemnation 14
12.2 :Award 14
12.3 Definition of Taking 14
ARTICLE 13 Subordination and Sale
13.1 Subordination 14
1 ;.2 Sale of the Property 14
13.3 Estoppel Certificate 15
ARTICLE 14 Notices
14.1 \lerhoc 15
ARTICLE 15 Miscellaneous
15. I General 16
15.2 No Waiver 16
15.3 AttorneysFees lb
15.4 Exhibits 15
15.5 Broker(s) I(;
15.6 Waivers of Certain Damages 17
15.7 Entire Agreement 17
I a St Disclaimer I'?
EXHIBIT A WORK LETTER ....... .. _.. .. ... .............. .. . _ .18
EXHIBIT B LEASE OPTION ..... 19
EXHIBIT C CONFIDENTIALITY 20
_ ,.
INDUSTRIAL/OFFICE LEASE
THIS LEASE, is made as of the date specified in the Basic Lease Information, by and between
DCJ PROPERTIES. LLC, a Colorado Limited Liability Company ("Landlord"), and PEAK
COMPLETIONS TECHNOLOGIES, INC. ("Tenant")
WITNESS ETU.
ARTICLE 1 Premises
i.l. Lease of Premises, Landlord hereby leases to Tenant, and Tenant hereby teases from Landlord, for
the term and subject to the covenants set forth herein, the space in the building specified in the Basic Lease
Information (the "Premises") as shown on Exhibit A, at the address specified in the Basic Lease
Information (the "Property"). Landlord and Tenant agree that, for purposes of this Lease, the Premises
and the Property, respectively, each contains the number of square feet of building area specified in the
Basic Lease Information and Tenant's Percentage Share specified in the Basic Lease Information is the
ratio of such building area of the Premises to such building area of the Property. During the term of this
Lease, Tenant shall have the nonexclusive right, in common with other tenants of the Property, to use only
for their intended purposes the common areas (such as driveways, sidewalks, parking areas, loading areas
and access roads). Landlord shall have the right from time to time to change the size, location,
configuration, character or use of any such common areas, construct additional improvements or facilities
in any such common areas, or close any sucli common areas. Tenant shall be subject to any such changes
and not interfere with die rights of Landlord and other tenants to use such common areas.
ARTICLE 2. Term
2.1: Term of Lease. The teini of this Lease shall he for 60 months, which shall commence on July
2014. The "Commencement Date" shall he July I , 2014. The "Base Rent Commencement Date"
shall be upon the Landlordi-Tenant receiving a Temporary Certificate of Occupancy for Tenant's storage
use or 60 days from the Commencement Date, whichever shall come first. Unless sooner terminated as
hereinafter provided, the term of this Lease shall end on September 30th, 2019 (60 months from
Commencement Date) (the "Expiration Date"). Tenant acknowledges that Tenant's possession of the
Property at the Commencement Date shall mean that Tenant has inspected the Property, the zoning of the
Property and has agreed that the Premises are acceptable to Tenant, are suitable for Tenant's purposes, and
the condition of the Property is acceptable to Tenant subject to the improvements agreed to by Landlord in
Exhibit "A".
2.2: Holdin .over. In the event that Tenant desires to continue to occupy the Premises for an additional
thirty (30) days after the expiration of the term of this Lease, then Tenant shall give written notice of this
desire (the "Hold Over Notice") to Landlord at least one hundred and eighty (IRO) days prior to the
expiration of the lease term, If Landlord consents to Tenant's continued occupancy, then the term of this
Lease shall be extended only for an additional period of thirty (.30) days (the "Hold Over Period") upon
the covenants, provisions and conditions herein contained at a monthly Base Rental equal to 1.5 times the
monthly Base Rental in effect at the scheduled expiration of the term of this Lease or Lease Option. In the
event that Tenant (i) fails to deliver its Hold Over Notice to Landlord as described above, or (ii) following
Landlord's receipt of the Hold Over Notice, Landlord elects not to consent to such continued occupancy by
Tenant, or (iii) the Hold Over Period has expired, then such continued occupancy shall not extend or renew
the term of this Lease, but such occupancy shall continue as a tenancy at will upon the covenants,
provisions and conditions contained herein and Tenant shall pay to Landlord as a daily penalty in lieu of
damages, daily Base Rental equal to one fifteenth (1115) of the monthly Base Rental in effect for the
immediately preceding calendar month. After the Hold Over Period, Landlord may terminate such tenancy
at any time on three (3) days' written notice.
ARTICI.F.3: Rent
5
Landlord: -
:Cn9:li: r�
3.1 Monthly Base Rent. Tenant shall pay to Landlord ail the amounts set forth as the Base Rent and
Additional Rent as follows:
Beginning:
Ending:
Monthly Base Lease Rate:
Per Square Foot Lease Rate:
07/01'2014
06/30./2015
$13,708.33
$7.00 PSF
07;0I'2015
06;30,2016
$14,119.5g
$7.21 PSI'
07/01!201(
06130,'2017
$14,550.42
$7.43 PSF
06/01'2017
06/30/2018
$14,981.25
$7.65 PSF
07/0)'201k
06/30/2019
515,431.67
$7.88 PSI'
The above Base Lease Rates do not include the estimated NNN charges.
(DATES ARE SUBJECT TO PROVISIONS O6' PARAGRAPH 2,1)
Base Rent shall be payable in monthly installments in the amounts shown above, in advance without notice,
demand, setoff or deduction and all such installments shall be paid to Landlord in U.S. Dollars. 1'he Base
Rent shall increase per the rent schedule In no event shall Tenant have the right to withhold any rent fur
any length of time regardless of whether any dispute exists relating to this Lease, the Premises, the Property
or Tenant's occupancy of the Premises or the Property Except as otherwise may he provided above, the
first u.onthly :nstallment of Base Rent and additional rent shall be due on July , 2014 Thereafter, such
monthly installments shall be due on the first day of each calendar month during the Term. If Tenant's
obligat:ort to pay Base Rent relates to only a par: of a month at the beginning or the end of the Term,
Tenant sha'tl pity Landlord a proportionate par, of the applicahle monthly installment for cacti such partial
month, which shall be payable lu the same time as the first or last (as applicable` monthly installment is due
ander this Lease
3.2 Additional Rent Tenant shall pay to Landlord, as "Additional Rent" Tenant's Percentage Share of
C1O.O!17,' of !'axes and Assessments, Insurance Premiums and Common Area Operation and Maintenance
Expenses related to the Property in such year. Throughout the term of this Lease, Tenant shall also pay all
other amounts of money and charges required to be paid by Tenant under this Lease. whether or trot such
amounts of money or charges are designated "Rent."
"Taxes and Assessments" shall include all real property taxes, personal property taxes and
assessments levied against the Property by any governmental or quasi -governmental authority,
including any taxes, assessments, surcharges or service or other fees of a nature not presently in effect
which shall hereafter be levied on the Property as a result of the use, ownership or operation of the
Property or for any other reason, whether to lieu of or in addition tci any current real estate taxes and
assessments, provided however, that :0 no event shall the term "Taxes and Assessments", as used
herein., include any federal, state or Inca'. income taxes levied or assessed against Landlord, unless such
taxes are .i sneci`.c substitute for real property taxes, such tern: shall, however, include Doss taxes on
rental and expenses incurred by Landlord for tax consultants and other advisors, including attorneys,
and in contesting the amount or validity of any such Taxes and Assessments (all of the forgoing may
be colleeriveiv referred to herein, as "Taxes") "Assessments" shall include any license fee, business
license tax. commercial rental tax, levy, charge or tax imposed by any autliutity having. the direct
power to tax, including any city, county, state. or federal government, or any school. agriculnreal,
lighting, water. drainage or other improvement or special district thereof, against the Premises or the
Property, or any par. thereof, or against tiny legal or equitable interest of Landlord therein. For the
purposes of this Lease, any special assessment shall be deemed payable in such number of installments
as is permitted by law, whether or not actually so paid. Tenant shall pay prior to delinquency all
personal property taxes on Tenant's personal property located in the Premises. Any tax or insurance
reimbursement for any partial lease year stall be apportioned on a per diem basis
"Insurance" shall include fire, extended coverage, property damage, liability and business interruption
or rent loss, all other insurance coverages described ire this paragraph and any other insurance coverage
rea,or.ahi' deemed by I andloi'd required ro he carried on rite Property- "Insurance Premiums" shall
mean all premiums charged for such Insurance. Tenant shall maintain, or cause to be maintained, a
policy or policies of Insurance issued by and binding upon an insurance company reasonably approved
by Landlord, insuring the Property against loss or damage by fire or other insurable hazard and
contingencies for the full insurable value thereof, or at Landlord's option, insuring for eighty percent
(100%) of the replacement cost thereof. Tenant shall maintain or cause to he maintained on the
Property a policy or policies of comprehensive general liability insurance in a form acceptable to
Landlord, such insurance to afford minimum protection of not less that Two Million Dollars
($2,000,000) for personal injury or death in one occurrence and of not less than Two Million Dollars
($2,000,000) for property damage in any one occurrence. Landlord shall be named as an additional
insured on such Insurance.
"Common Area Operation and Maintenance Expenses" or "CAM Expenses" shall mean all
expenses of any kind or nature which are necessary, ordinary, or customarily incurred with respect to
the operation, service, repair and maintenance of the Property as determined in accordance with
generally accepted accounting principles and shall include, but not be limited to, all sums expended in
connection with common areas for all general operation, service and maintenance and repairs,
including all utility services, such as, but not limited to, water, sewer, gas, electricity and trash removal
(the payment of which is not the sole responsibility of a specific tenant), till mechanical systems
including electrical, plumbing, sewer, piping, natural gas, lighting, all other systems and equipment
serving the common areas; resurfacing, re striping, cleaning, sweeping, snow removal over 2 inches (If
the Tenant's within the building agree to such services) and janitorial services; maintenance and repair
ot'sidewalks and curb -S-; irrigation systems, planting anddlfndsenping; lighting and other utilities; signs,
directional signs and other markers and bumpers; painting; storm drainage systems; roof patching and
repair and any other utility systems; personnel to implement such services including the salary of the
manager and all on -site personnel hired by Landlord and, if Landlord deems necessary, the cost of
security guards; property management fees not to exceed 5% of Landlord's gross revenues; any
governmental imposition or surcharge imposed against Landlord or assessed against the parking area
or any other portion of the common areas; depreciation of maintenance and operating machinery and
equipment (if owned) and rental paid for such machinery and equipment (if rented). Landlord may
cause any or all of said services to be provided by an independent contractor or contractors.
3.3 Payment of Additional Rent. Tenant shall pay any Additional Rent within 15 days of presentment to
Tenant by the Landlord or within the time set for payment by the third, party whichever is earlier. If the
Additional Rent is not paid directly to Landlord, then Tenant shall provide proof of payment to Landlord
with 5 days of payment. At the end of the calendar year, the Tenant shall provide the Landlord with a
reconciliation of the operational costs of the Property.
Landlord's failure during the Lease term to prepare and deliver any Statement or any hilis, or Landlord's
failure to make a demand tinder this Section 3.3, or under any other provision of this Lease shall not in any
way be deemed to he a waiver of, or cause Landlord to forfeit or surrender, its rights to collect any items of
Additional Rent which may become due pursuant to this paragraph during the term of this Lease, except as
otherwise specifically set forth in this Lease. Tenant's liability for all Additional Rent due under this Lease
shall survive the expiration or earlier termination of this Lease,
Regardless of any rental abatement granted to Tenant as an incentive or concession, or to which Tenant
may be entitled hereunder, Tenant's obligation to pay its Percentage Share of Additional Rent shall not
abate, but shall begin on the Commencement Date and shall continue in full force and effect for the entire
term of this Lease, including any renewals or extensions hereof,
3.4 Security D osit. Upon signing this Lease, Tenant shall pay to Landlord the amount of $18,600.00
(the "Security Deposit"). The Security Deposit shall be held by Landlord as security for the performance
by Tenant of all Tenant's covenants under this Lease, and Tenant shall not be entitled to interest thereon. If
Tenant fails to perform any of the covenants of this Lease, then Landlord shall have the right, but no
obligation, to apply the Security Deposit, or so much thereof as may be necessary, to cure any such failure
Tcnant. I
by Tenant. If Landlord applies the Security Deposit or any part thereof to cure any such failure by Tenant.
then Tenant shall immediately pay to Landlord the sum necessary to restore the Security Deposit to the full
amount required by this Section 3.4. Landlord shall return any remaining portion of the Security Depostt to
Tenant within sixty (60) days after termination of this Lease. Upon termination of the original Landlord's
or any successor owner's interest in the Premises, the original Landlord or such successor owner shall he
released from further liability with respect to the Security Deposit upon transferring the Security Deposit to
the new owner.
3.5 Late Payment. Tenant acknowledges that the late payment by Tenant of any monthly instalment of
Monthly Base Rent or additional monthly expenses will cause Landlord to incur costs and expenses, the
exact amount of which is extremely difficult and impractical CO fix Therefore, if any installment of
Monthly Base Rent or additional monthly expenses is not received by Landlord within five (5) days after
such installment is due, Tenant shall immediately pay to Landlord a :ate charge equal to five percent (WO
of such delinquent installment. In no event shrill such late charge he deemed to grant to Tenant an
extension of .rme within which to pay any such amounts or prevent Landlord from exercising any right
available to Landrord upon tenant's failure to pay each monthly installment under this Lease when due.
AI' amounts payable by Tenant to Landlord hereunder, if not paid when due, shall bear interest front the
due date until paid at the rate of eighteen percent {IS%)^ter annum.
1.6 Other Taxes Payable by Tenant Tenant shrill rerntoursc Landlord upon written demand fir all taxes,
assessments, fees and charges, whether or not now customary' tare or within the contemplation of Landlord and
Tenant, that arc payable by Landlord 'and levied, assegaell, charged or imposed by any public or
government authority upon, or reasonably anrihutat,h_ to (a) the cost or value of Tenant's furniture,
fixtures, equipment and other personal property located in the Premises or the cost or value of airy
improvements made in or to the Premises by or for Tenant, regardless of whether title to such
improvements .s vested in Tenant or Landlord, (h) any tax on rent, (c) the possession, !easing, operation,
management, oma:nrcnance, alteration, repair, use or o_cupunev by Ierrant of the Premises, or (d) this
transaction. Such taxes, assessments, fees and charges shall rot include lief income or franchise taxes of
Landlord, unless assessed against Landlord in whole or in part in lieu of, as a substitute for, or as an
addition to any such taxes, assessments. excises, levies, fees and charges.
3 7 Payment Address, Tenant shall pay al Monthly Base Rent and additional rent to Landlord, in
advance, on or before the first day of each and every calendar month during the term of this Lease. Tenant
shall nay all such amounts to Landlord without notice. demand, deduction or offset at the payment address
specified tit the Basic tease Information, or to such or'tcr person or at such ether place as Landlord may
from time to time designate in writing.
3.h No Accord and Satisfaction. No payment by tenant or receipt by Landlord of a lesser amount of
Monthly Base Rent and additional rent or any other sum due hereunder, shall be deemed to be other than on
account of the earliest due rent or payment, nor shall any endorsement or statement on any check or any
letter accompanying any such check or payment be deemed an accord and satisfaction, and Landlord may
accept such check or payment without prejudice to Landlord's tight to recover the balance of such rent or
payment or pursue any other remedy available in this !,rase, at law or in equity_ Landlord may accept any
parties: payment from Tenant without invalidation of any contractual notice required to be given herein (to
tic extent such contractual notice is required) and without invalidation or .Any notice required by any law
pertaining to eviction or snmmary remedy for regaining possession of real property' in the event of tenant
default.
ARLT('I.1- 4: ;Ise rf the Pretxt ses
4-I Permitted Use Tenant shall use the Premises and the Property only ibr mite Permitted L'se of the
Premises specified in the Basic Lease information and for lawful purposes incidental thereto, and no other
purpose '.vhat.socver Tenant Shall not duo or permit to he done in, can or about the Premises, nor hrtng or
keep or permit to be brought or kept therein, which is prohibited by or will in any way conflict
..nord _ n, anything
v
AMENDMENT TO
OFFICE/INDUSTRIAL LEASE
Date: October 10, 2014
This is an Amendment to the Office/Industrial Lease between DCJ Properties, LLC as Landlord
and Peak Completion Technologies, Inc. as Tenant for the Property that is described as the
23,500 square foot building located at 11373 Business Park Circle, Firestone, Colorado.
("Lease").
This Amendment is supplemental to the original Lease and only changes the Commencement
Date, the Base Rent Commencement date, the Term, and the Expiration Date of the Lease. All
other provisions of the Lease remain unchanged.
ACCORDINGLY, the Lease is hereby amended as follows:
The Commencement Date is changed from "July 1st, 2014", to "October 15, 2014".
The Base Rent Commencement date is changed from "July I `', 2014", to "October 15, 2014".
The Term of the lease is changed from "60 Months" to "61 Months".
The Expiration Date is changed from "60 months from Commencement Date" to "61 months
form Commencement Date".
IN WITNESS WHEREOF, Landlord and Tenant have executed this Amendment to the
Lease as of the date specified above.
Landlord: DCJ Properties, LLC
By: fiViv /4hle7Ife"TU
Title: CU - INGIL
Tenant: Peak Completion Technologies. Inc.
By: Kerry Hatley
Title: President
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