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HomeMy WebLinkAbout20160879.tiff DEPARTMENT OF BUILDINGS AND GROUNDS PHONE: (970)304-6531 FAX: (970)304-6532 '- o u N T z WEBSITE:www.co.weld.co.us 1105 H STREET P.O. BOX 758 GREELEY,COLORADO 80632 March 14,2016 Mr. David R.Wagley C/O Animal Health International Mr.Wagley: Per Section 4 of the Lease Agreement between Animal Health International and Weld County,most recently amended March 9, 2016,Animal Health International has the option to renew beginning on December 1, 2018. However,the term of the lease expires on November 30,2017.This is a clerical error which Weld County would like to correct by offering to change the table in Section 4 as follows: Period of Renewal Base Rent(PSF) Annual Base Rent Monthly Installment of Term _ Base Rent December 1,2017 to $15.52 $506,254.66 $42,187.89 November 30,2018 _ December 1, 2018 to $15.98 $521,260.78 $42,438.40 November 30,2019 December 1, 2019 to $16.45 $535,593.12 $44,716.09 November 30,2020 If this correction is acceptable to you, please sign below and return to me at your earliest convenience. Respectfully, To ? fi t_ Taylo�r by Director,Weld County Department of Buildings and Grounds ACCEPTED AND APPROVED on behalf of Animal Health International Inc. / David R.Wagley Date oroao-6179 3-al-o2o l y Pi20o RESOLUTION RE: APPROVE ELEVENTH AMENDMENT TO OFFICE LEASE AGREEMENT (822 7TH STREET, GREELEY, CO) AND AUTHORIZE CHAIR TO SIGN - ANIMAL HEALTH INTERNATIONAL, INC. 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, the Board has been presented with an Eleventh Amendment to Office Lease Agreement (822 7th Street, Greeley, CO) between the County of Weld, State of Colorado, by and through the Board of County Commissioners of Weld County, on behalf of the Department of Buildings and Grounds, and the Animal Health International, Inc., commencing March 9, 2016, and ending November 30, 2021, with further terms and conditions being as stated in said amendment, and WHEREAS, after review, the Board deems it advisable to approve said amendment, 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 Eleventh Amendment to Office Lease Agreement (822 7th Street, Greeley, CO) between the County of Weld, State of Colorado, by and through the Board of County Commissioners of Weld County, on behalf of the Department of Buildings and Grounds, and Animal Health International, Inc., be, and hereby is, approved. BE IT FURTHER RESOLVED by the Board that the Chair be, and hereby is, authorized to sign said amendment. The above and foregoing Resolution was, on motion duly made and seconded, adopted by the following vote on the 9th day of March, A.D., 2016. BOARD OF COUNTY COMMISSIONERS WELD COUNTY, COLORADO ATTEST: ddrit4N G: o•� F�� Mike Freeman, Chair Weld County Clerk to the Board 7 �- • Sean P. Conway, Pro-Te 'Q. ) BY: �� uty Clerk o the Boar• ,� . Cozad APPRO D AS TO .=•�" ` Est :�!I/ tit `ra Kirkmeyer ey Date of signature: 029 Steve Moreno 2016-0879 �,�,: tra3I� PR0035 DEPARTMENT OF BUILDINGS AND GROUNDS jr' �l r.•' = PHONE: (970) 304-6531 ✓,/ r �' FAX: (970) 304-6532 N ?� WEBSITE:www.co.weld.co.us G O 1105 H STREET P.O. BOX 758 GREELEY,COLORADO 80632 March 2, 2016 To: Board of County Commissioners From:Toby Taylor Subject:Animal Health Lease Amendment Animal Health International Inc. are current tenants in our building located at 822 7th Street. This amendment is to add 5,134 square feet of office space and 19 parking spaces to their current lease and retains their 3-year renewal option in 2017. The costs of the tenant improvements for the additional space is incorporated into the corresponding fees which brings the total to $14.65 per rentable square foot for an annual base rent of$477,873.52. Buildings&Grounds is recommending approval of the lease amendment. If you have any questions, please contact me at extension 2023. Sincerely, Toby Taylor Director 2016-0879 ELEVENTH AMENDMENT TO OFFICE LEASE AGREEMENT This Eleventh Amendment to Office Lease Agreement (the "Eleventh Amendment") is made and entered into,effective as of March 1,2016("Effective Date"),by and between the Board of County Commissioners of Weld County,on behalf of Weld County,Colorado,a body corporate and politic of the State of Colorado, as successor in interest to SA19-Riverwalk Square LLC ("Landlord"), and ANIMAL HEALTH INTERNATIONAL, INC., a Colorado corporation formerly known as Lextron Inc. ("Tenant"). WITNESSETH: A. 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. Weld County(Landlord)purchased the real property known as 822 7th Street,Greeley,Colorado 80631 (also known as the"Chase Building"),and thereby became the successor in interest to SA19-Riverwalk Square LLC, as it relates to this Lease Agreement. B. Prior Agreements: 1. The original lease dated August 11, 2003 was executed between Greeley Lincoln Park Properties LLC, as original lessor, and Lextron Inc., as tenant. 2. An Amendment of Lease Agreement dated February 20, 2007 was executed between Greeley Lincoln Park Properties LLC, as lessor, and Lextron Inc., as tenant. 3. A Second Amendment of Lease Agreement dated December 11, 2007 between Greeley Lincoln Park Properties LLC, as lessor, and Lextron Inc., as tenant. 4. A Third Amendment of Lease Agreement dated July 15, 2008 was executed between Greeley Plaza LLC,as successor lessor to Greeley Lincoln Park Properties LLC, and Lextron Inc., as Tenant. 5. A Fourth Amendment of Lease Agreement dated September 15,2011 was executed between Greeley Plaza LLC, as lessor, and Lextron Inc., as tenant. 6. A Fifth Amendment of Lease Agreement dated May 24,2012 was executed between CSA 19-Riverwalk Square LLC, as successor lessor to Greeley Plaza LLC, as lessor, and Lextron Inc., as tenant. 7. A Sixth Amendment to Office Lease Agreement dated August 24, 2012 was executed between CSA 19-Riverwalk Square LLC, as lessor, and Lextron Inc., as tenant. 8. A Seventh Amendment to Office Lease Agreement dated October 1, 2013 was executed between CSA 19-Riverwalk Square LLC, as lessor, and Animal Health International Inc., formerly known as Lextron Inc., as tenant. 9. An Eighth Amendment to Office Lease Agreement dated March 14, 2014 was executed between CSA 19-Riverwalk Square LLC, as lessor, and Animal Health International Inc., as tenant. 10.A Completion Date Memorandum dated April 10,2014 was executed between CSA 19-Riverwalk Square LLC, as lessor, and Animal Health International Inc., as JO/ -- o�77 tenant. 11. A Ninth Amendment to Office Lease Agreement dated August 29, 2014 was executed between CSA 19-Riverwalk Square LLC, as lessor, and Animal Health International Inc., as tenant. 12. A Tenth Amendment to Office Lease Agreement dated February 18, 2015 was executed between Weld County, as lessor,and Animal Health International Inc., as tenant. C. Landlord and Tenant desire to amend the Lease to reflect (i) the expansion of the Premises by 5,134 rentable square feet into a portion of Suite 220 and 250 of the Building, (ii) Landlord's minor remodel,and(iii)based on the expansion of the Premises, adjust the Base Rent, Tenant's Pro Rata Share, and parking, as those terms are defined in the Lease. AGREEMENT 1. Expansion of Premises. Landlord and Tenant acknowledge and agree that as of the Effective Date, the Premises and the "Tenant Square Footage" as defined in Section 1.1.5 of the Lease shall be increased by 5,134 rentable square feet by the inclusion of that portion of Suite 220 and 250 of the Building as depicted on Schedule 1 attached hereto. 2. Description of Premises and Tenant Square Footage. Landlord and Tenant acknowledge and agree that as of the Effective Date,the Premises shall consist of Suites 200,220, and 250 5th floor conference room, the portion of Suite 540 described on Schedule 1, 560, 600, 605, 610,620,630,650,700,740 and 750 for a"Tenant Square Footage"of 32,622 rentable square feet.Notwithstanding anything contained in the Lease to the contrary, including but not limited to the provisions of Section 1.1.5 of the Lease the "Tenant Square Footage" shall mean 32,622 rentable square feet. 3. Base Rent. Section 3 of the Tenth Amendment, which amends Paragraph 1.1.8 of the Lease, is superseded in its entirety by the following: b. Base Rent. Notwithstanding anything contained in the Lease to the contrary, including but not limited to Paragraph 1.1.8 of the Lease, Tenant shall pay Base Rent to Landlord in the following amounts for the following periods in equal monthly installments without offset or deduction as follows Period of Term Base Rent Annual Base Monthly Installment (PSF) Rent of Base Rent March 1,2016 2015 to November 30,2016 $14.65 $477,873.52 $39,822.79 December 1, 2016 to November 30, 2017 $15.08 $491,900.98 $40,991.75 4. Option to Renew. Section 4 of the Tenth Seventh Amendment is superseded in its entirety by the following: 5. Option to Renew. Tenant shall have the option to renew the term of the Lease for one (1) additional lease term of three (3) years (an"Option") on the terms and conditions of the Lease, except that the Base Rent to be paid during the renewal term shall be as set forth in this Section 3. The Option is granted upon the condition that (a) written notice of the exercise of the Option must be given by Tenant to Landlord not less than one hundred eighty (180) calendar days prior to the end of the then current Term of this Lease, and (b) at the time of the giving of notice of exercise of the Option, and at the expiration of the then current Term of this Lease there are no Events of Default as defined in the Lease then exists and is continuing beyond the applicable cure period. The renewal term shall commence on the day following the end of the then current Term of the Lease. The Base Rent during the renewal term that is to be paid by Tenant to Landlord in equal monthly installments without offset or deduction is as follows: Period of Renewal Base Annual Monthly Term Rent Base Rent Installment of Base (PSF) Rent December 1, 2018 to $15.52 $506,254.66 $42,187.89 November 30, 2019 December 1, 2019 to $15.98 $521,260.78 $42,438.40 November 30, 2020 December 1, 2020 to $16.45 $535,593.12 $44,716.09 November 30,2021 5. Tenant's Pro Rata Share. Section 5 of the Tenth Amendment, which amends Paragraph 1.1.9 of the Lease, is superseded in its entirety by the following: b. Tenant's Pro Rata Share.The provisions of Paragraph 1.1.9 of the Lease are deleted in their entirety and the following is inserted in lieu thereof as of the Effective Date. "1.1.9 Tenant's Pro Rata Share shall mean the ratio that Tenant's Square Footage bears to the total Rentable Square Footage of the Building of 118,749 square feet, or 27.47% which may be adjusted pursuant to paragraph 7.1 (c), below." 6. Landlord Improvements to Portion of Suite 220 and 250. Landlord agrees to complete a minor remodel of a portion of the expanded lease area, as described in Exhibit A to this Eleventh Amendment.The cost of said remodel is agreed by the Parties to be$77,963.00. Landlord shall be responsible for 33.3% share of said costs ($25,961.68), and Tenant shall be responsible for 66.7%share of said cost($52,001.32). Tenant's share of said costs shall be amortized over five years ($10,400.26 per year), and is reflected in the Base Rent provided in Sections 4 and 5 of this Eleventh Amendment. If for any reason whatsoever, the Lease is not extended beyond December 1, 2018, Tenant shall refund to Landlord the amortized amounts scheduled to be paid after that date (i.e. $31,200). Such refund shall be made no later than December 31, 2018. 7. Parking. Notwithstanding anything contained in the Lease to the contrary, including but not limited to the provisions of Schedule 6 of the Lease or Section 7 of the Tenth Amendment, subject to the terms and conditions of this Section 7, Landlord shall retain current Tenant parking as follows: Location Gated Lot Lot Lot Gated Lot B Lot C Lot H Total B C H Price/Month Free Free Free Free $45 $37.50 $37.50 $52.50 $4,867.50 Quantity 15 19 2 1 53 45 17 3 155 Tenant acknowledges and agrees that(i)the per month price for parking spaces are subject to change from time to time by Landlord, following written notice to Tenant, and (ii) the parking spaces located in Lot B and Lot C are either owned or controlled by the City of Greeley,Colorado and that Landlord makes no representations or warranties regarding the continued availability of any such parking spaces located in such parking area for use by Tenant. 8. Existence of Offsets, Credits, Claims, or Causes of Action. Tenant hereby represents and warrants to Landlord that Landlord is not in default under the Lease and Tenant has no offsets or credits against Base Rent or any other amounts due thereunder, nor have any rentals been paid in advance. Further, Tenant agrees that there are no existing claims or causes of action against Landlord arising out of the Lease,nor are there any existing defenses which Tenant has against the enforcement of the Lease by Landlord. 9. Release From Pre-existing Claims or Causes of Action. Tenant and Tenant's partners, officers, directors, members, managers, agents and employees, if any, hereby release Landlord, its managers, members, partners, officers, directors, agents, employees, attorneys, successors, heirs and assignees from any and all claims or causes of action, known or unknown, arising out of Lease related to the period prior to the Effective Date of this Eleventh Amendment. 10. Real Estate Commissions. Tenant and Landlord represent to each other that, except for Realtec C.R.E.S.I,neither has dealt with any broker or any other person concerning this Lease in a manner that would give rise to a claim for the payment of a fee or commission, with regard to the subject matter of this Eleventh Amendment. 11. Effective Date. This Eleventh Amendment shall take effect and be legally binding upon the parties as of the Effective Date. 12. Ratification of Lease. Tenant hereby ratifies the Lease as amended by this Eleventh Amendment, agrees to be bound by and perform all terms of the Lease not amended hereby and agrees that all other terms and conditions of the Lease are hereby confirmed or approved by the parties and remain in full force and effect. Hereinafter,the term "Lease"will refer to the Lease as amended by this Eleventh Amendment. 13. Confidentiality. The Parties agree that the terms of this Lease are subject to the Colorado Open Records Act(CORA), C.R.S. §24-72-301 et seq. 14. Entire Agreement. This Eleventh Amendment and the documents it refers to contain the entire agreement between the parties with respect to the subject matter hereof.All prior and contemporaneous negotiations, including, without limitation, any letters of intent or other proposals and any drafts and related correspondence, are merged into and superseded by this Eleventh Amendment. No subsequent alteration, amendment, change or addition to the Lease or Eleventh Amendment is binding on Landlord or Tenant unless it is in writing and signed by the party against whom its enforcement is sought. 15. Counterparts. This Eleventh Amendment may be executed in any number of counterparts, and when a counterpart hereof has been executed and delivered by all parties, this Eleventh Amendment shall be deemed binding upon the parties hereto. 16. Severability. If any term or condition of this Agreement shall be held to be invalid, illegal, or unenforceable by a court of competent jurisdiction, this Agreement shall be construed and enforced without such provision, to the extent that this Agreement is then capable of execution within the original intent of the parties. 17. Governmental Immunity. No term or condition of this contract shall be construed or interpreted as a waiver, express or implied, of any of the immunities,rights,benefits, protections or other provisions,of the Colorado Governmental Immunity Act§§24-10-101 et seq., as applicable now or hereafter amended. 18. No Third Party Beneficiary. It is expressly understood and agreed that the enforcement of the terms and conditions of this Agreement,and all rights of action relating to such enforcement, shall be strictly reserved to the undersigned parties and nothing in this Agreement shall give or allow any claim or right of action whatsoever by any other person not included in this Agreement. It is the express intention of the undersigned parties that any entity other than the undersigned parties receiving services or benefits under this Agreement shall be an incidental beneficiary only. 19. Board of County Commissioners of Weld County Approval. This Agreement shall not be valid until it has been approved by the Board of County Commissioners of Weld County, Colorado or its designee. 20. Choice of Law/Jurisdiction. Colorado law, and rules and regulations established pursuant thereto, shall be applied in the interpretation, execution, and enforcement of this Agreement. Any provision included or incorporated herein by reference which conflicts with said laws, rules and/or regulations shall be null and void. In the event of a legal dispute between the parties, Tenant agrees that the Weld County District Court shall have exclusive jurisdiction to resolve said dispute. 21. Attorneys' Fees/Legal Costs. In the event of a dispute between Landlord and Tenant, concerning this Agreement, the parties agree that each party shall be responsible for the payment of attorney fees and/or legal costs incurred by or on its own behalf. 22. Binding Arbitration Prohibited: Weld County does not agree to binding arbitration by any extra judicial body or person. Any provision to the contrary in this Agreement or incorporated herein by reference shall be null and void. IN WITNESS WHEREOF, the Landlord and Tenant, through their duly authorized representatives, have executed this Eleventh Amendment to Lease Agreement as of the Effective Date. 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