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HomeMy WebLinkAboutbocc.ord.022.2024 ORDINANCE OF THE BOARD OF COUNTY COMMISSIONERS OF PITKIN COUNTY, COLORADO, AMENDING APPROVING A FIFTH AMENDMENT TO A LEASE AGREEMENT BETWEEN JEDEDIAH ASPEN, LLC AND THE BOARD OF COUNTY COMMISSIONERS TO EXTEND THE LEASE AGREEMENT FOR THE FOOD AND BEVERAGE CONCESSION AT THE ASPEN/PITKIN COUNTY/SARDY FIELD AIRPORT ORDINANCE NO. 022-2024 RECITALS WHEREAS, pursuant to 30-35-301 C.R.S., the Board of County Commissioners (“BOCC”) of Pitkin County, Colorado a Home Rule County is authorized to make and publish ordinances for carrying into effect or discharging the powers and duties conferred upon such counties by law and as seems necessary and; WHEREAS, pursuant to Section 2.8.1 of the Home Rule Charter (“HRC”), the BOCC is authorized to take official action by Ordinance for certain matters where action is prescribed pursuant to the Colorado Revised Statutes as amended and; WHEREAS, Pitkin County is the owner and operator of the Aspen/Pitkin County/Sardy Field Airport (“Airport”), and does maintain various spaces for the public and from time to time does lease the use of parts of these areas to various individuals, firms, companies or corporations to serve the users of the Airport and; WHEREAS, pursuant to Ordinance No. 021-2017, the BOCC entered into a lease agreement with Jedediah Aspen, LLC (“JALLC”) d/b/a Jedediah’s Catering & Concessions (“lessee”) for operation of a food and beverage concession at the Airport through July 31, 2022 and; WHEREAS, pursuant to Ordinance No. 025-2021, the BOCC approved a first amendment to Ordinance No. 021-2017 amending the lease agreement to extend the square footage of the concession boundary area into the secured passenger area of the airport, and; WHEREAS, pursuant to Ordinance No. 001-2022, the BOCC approved a second amendment to Ordinance No. 021-2017 amending the lease agreement to extend the term of the lease agreement through December 31, 2022, to coincide with the term of the liquor license held by Jedediah Aspen, LLC., and; WHEREAS, pursuant to Ordinance No. 046-2022 the BOCC approved a third amendment Ordinance No. 021-2017 amending the lease agreement to extend the term of the lease agreement through December 31, 2023, and; WHEREAS, negotiations for the previous third amendment to the lease agreement between the County and the Lessee resulted in a proposed addendum to a lease agreement, which included a revised Minimum Annual Guarantee (MAG), an enhanced percentage override scale, inclusion of new business revenue and an increased utility expense contribution, and; Ordinance 022-2024 WHEREAS, pursuant to a Lease Renewal Amendment (fourth amendment) approved by both parties on October 31, 2023, the lease was renewed and is in effect until December 31, 2024, and; WHEREAS, with the Lessee being the current food service operator for the airport, they have experience with the community and customers they serve for the commercial operations as well as the general aviation community. Further, they have experience with adapting for airport closures for annual maintenance and the time to plan for a possible long-term closure for airfield construction. WHEREAS, the flexibility with a time extension will allow the Lessee to adapt strategies based on their previous experience at the airport and future planning for a long-term construction closure. These strategies include an alternate kitchen within the valley and food truck to serve employees, contractors and community members throughout periods of the airport closure. This will allow contractors and employees the option to stay on site rather than having to commute for food and beverage options up or down valley, and; WHEREAS, with the extension proposed in the lease agreement of three years with an option for an additional two years or until the new terminal commences operation, it will allow the Lessee sufficient time to invest in upgrades needed, secure property supplies needed for the seasonal fluctuations, and; WHEREAS, with the exception of the amendments described in Exhibit A of the lease agreement attached hereto, all the remaining terms, conditions and obligations of the Lease shall remain in full force and effect, and; WHEREAS, the BOCC finds that adoption of this ordinance is in the best interest of the citizens of and the visitors to Pitkin County. NOW, THEREFORE, BE IT ORDAINED by the Board of County Commissioners of Pitkin County, Colorado that: 1. It hereby adopts an Ordinance Amending Ordinance No. 021-2017 and Approving a Fifth Amendment to a Lease Agreement between Jedidiah Aspen, LLC. and the Board of County Commissioners for the Food and Beverage Concession at the Aspen/Pitkin County/Sardy Field Airport, and; 2. It hereby authorizes the Chair or the Chair’s designee to sign the Ordinance and upon the satisfaction of the County Attorney as to form, execute any other associated documents necessary to complete this matter. Ordinance 022-2024 INTRODUCED AND FIRST READ ON THE 6TH DAY OF NOVEMBER, 2024 AND SET FOR SECOND READING AND PUBLIC HEARING ON THE 20TH DAY OF NOVEMEBR 2024. NOTICE OF PUBLIC HEARING AND TITLE AND SHORT SUMMARY OF THE ORDINANCE PUBLISHED IN THE ASPEN DAILY NEWS ON THE 7TH DAY OF NOVEMBER, 2024. NOTICE OF PUBLIC HEARING AND THE FULL TEXT OF THE ORDINANCE POSTED ON THE OFFICIAL PITKIN COUNTY WEBSITE (www.pitkincounty.com ) ON THE 7TH DAY OF NOVEMBER 2024. ADOPTED AFTER FINAL READING AND PUBLIC HEARING ON THE 20TH DAY OF NOVEMBER 2024. POSTED BY TITLE AND SHORT SUMMARY ON THE OFFICIAL PITKIN COUNTY WEBSITE (www.pitkincounty.com ), AFTER ADOPTION, ON THE 28TH DAY OF NOVEMBER, 2024. PUBLISHED BY TITLE AND SHORT SUMMARY, AFTER ADOPTION, IN THE ASPEN DAILY NEWS ON THE 28TH DAY OF NOVEMBER, 2024. ATTEST: BOARD OF COUNTY COMMISSIONERS By _________________________ By: _____________________________ Sam Engen Greg Poschman, Chair Clerk to the Board Date: ______________ APPROVED AS TO FORM: MANAGER APPROVAL ___________________________ _________________________________ Richard Neiley, III Jon Peacock, County Manager Interim County Attorney Nov-25-2024 EXHIBIT A FIFTH AMENDMENT TO LEASE AGREEMENT (Aspen/Pitkin County Airport) THIS FIFTH AMENDMENT TO LEASE AGREEMENT (herein after “Fifth Amendment”), effective as of January 1, 2025, is entered into by and between THE BOARD OF COUNTY COMMISSIONERS OF PITKIN COUNTY, COLORADO (“Lessor” or “County”) and JEDEDIAH ASPEN, LLC, a Wyoming limited liability company (“Lessee” or “Jedediah”). Lessor and Lessee are sometimes collectively referred to herein as the “Parties.” RECITALS: WHEREAS, Lessor and Lessee are parties to that certain Lease Agreement dated August 1, 2017 and as amended on June 23, 2021 and further amended on January 12, 2022 and on December 23, 2022 (the “Lease”) to occupy the Premises described in the Lease, being the Restaurant and Bar Area (approximately 1,780 sq. ft.), Specialty Drinks and Snacks (195 sq. ft.), and Seasonal Counter (319 sq. ft.), and; WHEREAS, pursuant to Ordinance No. 021-2017, the BOCC entered into a lease agreement with Jedediah Aspen, LLC (“JALLC”) d/b/a Jedediah’s Catering & Concessions for operation of a food and beverage concession at the Airport through July 31, 2022 and; WHEREAS, pursuant to Ordinance No. 025-2021, the BOCC approved a first amendment to Ordinance No. 021-2017 amending the lease agreement to extend the square footage of the concession boundary area into the secured passenger area of the airport, and; WHEREAS, pursuant to Ordinance No. 001-2022, the BOCC approved a second amendment to Ordinance No. 021-2017 amending the lease agreement to extend the term of the lease agreement through December 31, 2022, to coincide with the term of the liquor license held by Jedediah Aspen, LLC., and; WHEREAS, pursuant to Ordinance No. 046-2022, the BOCC approved a third amendment to Ordinance No. 021-2017 amending the lease agreement to extend the term of the lease agreement through December 31, 2023 and to revise the terms of Section B. of the lease agreement, and; WHEREAS, pursuant to a Lease Amendment Agreement to Contract No. 023-2017 the BOCC approved a fourth amendment to Ordinance No. 021-2017 amending the lease agreement to extend the term of the lease agreement through December 31, 2024, and; WHEREAS, the County and Jedediah mutually desire to extend the terms of the Lease by entering into this Fifth Amendment. All other terms, provisions, and obligations shall remain in effect and be extended pursuant to this Fifth Amendment. AGREEMENT: NOW THEREFORE, in consideration of the mutual promises, covenants and agreements contained herein, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows: 1. TERM OF LEASE: The Lease shall be extended for a period of three (3) years, commencing January 1, 2025 and expiring on December 31, 2027. Jedediah shall have one option to extend the lease for a period of two (2) years upon the following terms: (1) Jedediah provides notice of its intent to exercise the option thirty (30) days prior to the expiration of the terms stated above; (2) at the time Jedediah exercises the option, it is not currently in breach nor has it had any prior breach of the Lease or any amendment thereto; and (3) the premises have not been destroyed or altered due to the construction of a new or remodeled Airport terminal. The County may terminate the Contract and the Fifth Amendment, at its sole discretion, in the event that it desires to remodel or replace the terminal at the Airport during the extended term or the option. 2. LIMITED MODIFICATION OF LEASE; SCOPE: Except as the term is extended by this Fifth Amendment, the County and Jedediah agree to continue to abide by all terms of the Lease and any amendment to the Lease. 3. FULL FORCE AND EFFECT: In all other respects, the Lease is in full force and effect and remains unchanged by this Fifth Amendment. [Signature Page(s) Follow] IN WITNESS WHEREOF, the Parties hereto have executed this Fourth Amendment to Commercial Lease Agreement to be effective as of the Effective Date first written above. Lessor: Lessee: Board of County Commissioners of Pitkin County, Colorado __________________________________ Greg Poshman, Chair Date Jedediah Aspen LLC __________________________________ Rhea Brough Date APPROVED AS TO FORM: __________________________________ Richard Neiley, Date Interim County Attorney Dec-26-2024 Dec-27-2024 Dec-28-2024