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HomeMy WebLinkAbout2106 ResolutionCITY OF PASCO, WASHINGTON RESOLUTION NO.a\C)(; A RESOLUTION of the City Council of the City of Pasco, Washington, approving and authorizing the execution and delivery of a Construction Contract for the Civic Center project and a Ground and Building Lease and a Lease relating to the lease financing of a portion of the Pasco Civic Center project. WHEREAS, City of Pasco, Washington (the "City"), is the owner of certain real property located in the City known as the Pasco Civic Center (the "Civic Center"); and WHEREAS, under the Constitution and the laws of the State of Washington, including chapter 35.42 RCW, the City is authorized, as lessor, to lease out real property owned by the City on terms and conditions that require the lessee to construct thereon certain improvements for the use of the City, and is further authorized following completion of construction of those improvements, as lessee, to lease back the land and those Improvements for City use; and WHEREAS, City has heretofore advertised for bids for the remodeling and construction of the Civic Center (the "Civic Center Project"), including that portion of the Civic Center Project described as "Alternate X" and consisting of the North Wing of the Pasco Civic Center (the "Leased Premises") that will house the Police and Park Departments of the City (the "Improvements"); and WHEREAS, the Pasco City Council by motion passed unanimously on November 15, 1993, declared the bid of Levernier Construction, Inc. (the "Lessee"), to construct the Civic Center Project, including the Improvements, to be the most advantageous to City and 0109459 01 -1- authorized the City to execute contract documents necessary for construction of the Civic Center Project; and WHEREAS, the City has caused to be prepared and there is on file with the City Clerk a Standard Form of Agreement Between Owner and Contractor dated January , 1994, including the Specifications, Drawings, Addenda and other related documentation incorporated therein (the "Construction Contract"), to be entered into by the City and Lessee for the construction of the Civic Center Project, including the Improvements; and WHEREAS, pursuant to a form of Ground and Building Lease (the "Ground Lease") presented to the City Council and on file with the City Clerk, the City desires to lease the Leased Premises to Lessee for the purposes of permitting Lessee to construct the Improvements pursuant to the Construction Contract; and WHEREAS, pursuant to a form of Lease (the "Lease") presented to the City Council and on file with the City Clerk, the City also desires, simultaneously with the lease of the Leased Premises, to lease back the Improvements, which Lease provides that in no event shall City as tenant thereunder be liable for all or any part of the cost of construction of the Improvements nor shall City as tenant thereunder be liable for payment of rent under the Lease unless and until the Improvements have been substantially completed and are available for use by the City; and WHEREAS, the City intends that the Leased Premises shall be used solely for purposes of construction of the Improvements, and with such use limitations, the Leased Premises have nominal value to third parties; and 0109459 01 -2- FORM VE : City Clerk Ciq Attorney 109459A01 WHEREAS, any rental charged under the Ground Lease will be passed on by the Lessee to the City pursuant to the Lease, and the City has found that such rent pass-through and the use restrictions on the Leased Premises result in a maximum feasible rental for the property of $100 for the entire term of this Ground Lease; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ,PASCO, WASHINGTON, as follows: Section 1. The Construction Contract, Ground Lease and the Lease substantially in the forms presented to the City Council and on file with the City Clerk are approved. Section 2. The Mayor is authorized to execute and deliver on behalf of the City the Construction Contract, the Ground Lease and the Lease, with such changes, if any, as are necessary to effectuate the construction of the Civic Center Project, including the Improvements on the Leased Premises, and consistent with the essential terms of the documents approved by this resolution. The foregoing resolution was ADOPTED by the City Council of the City of Pasco, Washington, at a regular open public meeting thereof this _3 day of January, 1994. ATTEST: 14 ,,,,_:./-)446y.,-,-.) / / ) -3-