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HomeMy WebLinkAbout7879RESOLUTION NO. 7879 A RESOLUTION APPROVING AN AGREEMENT BETWEEN THE CITY OF PUEBLO, A MUNICIPAL CORPORATION AND PUEBLO DEVELOPMENT FOUNDATION RELATING TO THE TRANSFER OF LAND AT PUEBLO MEMORIAL AIRPORT AND CONSTRUCTION OF A PROJECT THEREON FOR THE USE OF HADDONSTONE AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL TO EXECUTE THE AGREEMENT AND THE WARRANTY DEED ATTACHED THERETO, AND AUTHORIZ- ING EXPENDITURE OF FUNDS THEREFOR BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1 The City Council does hereby find and determine: (a) The construction of a manufacturing facility on land at the Pueblo Memorial Airport Industrial Park for lease to Haddonstone (USA) Ltd. (the "Company ") meets and complies with the criteria and standards established by Ordinance No. 5742 and is eligible for the use of funds from the 1992 -2001 Sales and Use Tax Capital Improvement Projects Fund. (b) Pueblo Development Foundation will renovate the 26,000 square foot shell building on the approximately 3.65 acres of land at Pueblo Memorial Airport (herein "Project ") to be leased and occupied by the Company. (c) No similar project exists in the City and construction and equipping of the Project will require a large outlay of capital. (d) Company believes it will employ and has committed to the City that it will employ thirty (30) full -time employees at the Project. (e) The property described in paragraph 5 of the Agreement and Warranty Deed between the City and Pueblo Development Foundation attached hereto is surplus to the City's needs. (f) The construction of the Project will stimulate and promote industrial activity at Pueblo Memorial Airport thereby creating employment opportunities for the citizens of the City, greater use of airport facilities, and increased aeronautical activities. (g) The execution and performance of the Agreement and Warranty Deed between the City and Pueblo Development Foundation are in the best interests of the City and its citizens and will promote the public health, safety, commerce, prosperity and general welfare of the City and its citizens. SECTION 2 The Agreement dated May 28, 1996 and Warranty Deed attached thereto between the City of Pueblo, a Municipal Corporation and Pueblo Development Foundation, a Colorado nonprofit corporation, copies of which are attached hereto and incorporated herein as if set out herein in full, having been approved as to form the City Attorney, are hereby approved. SECTION 3 The amount of $234,000 is hereby authorized to be expended and made available out of the 1992 -2001 Sales And Use Tax Capital Improvement Projects Fund for the construction of the Project and shall be released by the Director of Finance upon receipt of requests for payment certified by the President of Pueblo Development Foundation, the Project architect and contractor that amounts included in the requests for payment are for labor and materials actually used and consumed in the construction of the Project and have not been included in any prior requests for payment. SECTION 4 The President of the City Council is hereby authorized to execute and deliver in the name of and on behalf of the City the Agreement and the Warranty Deed attached thereto and a subsequent Warranty Deed for the land described in paragraph 5 of the Agreement and the City Clerk is directed -2- to affix the seal of the City thereto and attest same. SECTION 5 This Resolution shall become effective upon final passage. INTRODUCED: May 28, 1996 ATTEST: City Clerk By Al Gu ule Councilperson APPROVED: Presi ent of the City Council -3- AGREEMENT THIS AGREEMENT entered into as of May 28, 1996 between Pueblo, a Municipal Corporation (herein "City ") and Pueblo Development Foundation, a Colorado nonprofit corporation (herein "Foundation "), WITNESSETH: WHEREAS, City is the owner by conveyance from the United States Government of certain land known as the Pueblo Memorial Airport, Pueblo County, Colorado, and WHEREAS, it would be in the best interest of the City and in the public interest if portions of the airport property not required for aviation or airport use be transferred and be reused and developed for industrial purposes; and WHEREAS, such reuse and development of portions of the airport industrial property would increase the tax base and availability of jobs and promote the economic expansion of the City; and WHEREAS, Foundation has proposed a plan for the reuse and development of a portion of the airport property for manufacturing purposes by Haddonstone (USA) Ltd.; and WHEREAS, the property to be development is surplus to the City's needs. NOW, THEREFORE, in consideration of the foregoing and mutual promises set forth herein, City and Foundation agree as follows: 1. Foundation and Haddonstone (USA) Ltd. (herein "Company ") have or will enter into an agreement for the lease and option to purchase approximately 6.25 acres of land at Pueblo Memorial Airport and improvements thereon (herein "Company's Lease ") which land is described in the Warranty Deed attached hereto (herein "Warranty Deed ") and paragraph 5 hereof (collectively the "Land "). 2. Company and Foundation have or will agree that the approximately 26,000 square foot shell building located on the Land will be renovated in accordance with plans and specifications approved by Company and PDF (the "Project "). City will advance funds not to exceed $234,000 ( "City Funds ") to Foundation for the construction of the Project pursuant to the terms and provisions of this Agreement. Foundation shall repay to City all City Funds advanced by the City for the construction of the Project plus $455,884 for the shell building or a total of $689,884 no later than August 1, 1996. 3. Upon delivery to City of an executed copy of Company's Lease, City will execute and deliver to Foundation a Warranty Deed to the Land. Foundation shall not use, lease, encumber, assign, or otherwise transfer title to the Land or its interest therein except in furtherance of and in compliance with the terms and provisions of Company's Lease. Contemporaneously with the delivery of the Warranty Deed to Foundation, Foundation will execute and delivery to City a promissory note in the amount of $689,884 payable to City and deed of trust in form and content approved by the City Attorney. The deed of trust shall be a first and prior lien on the Land and improvements thereon. 4. After delivery of an executed copy of Company's Lease, City Funds for the construction of the Project shall be released by the City's Director of Finance upon receipt from Foundation of requests for payment certified by the President of Foundation, the Project's architect and contractor that the amounts requested for payment are for labor and materials actually used and consumed in the construction of the Project and have not been included in any prior request for payment. 5. Subject to approval of a lot line rearrangement by Pueblo County, Colorado, City will convey to PDF approximately 2.60 additional acres of land (contiguous to and north of the land described in the Warranty Deed) in Lot 43, Pueblo Memorial Airport Industrial Park Subdivision to be included as part of the leased premises under Company's Lease. 6. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and assigns, provided Foundation may not assign this Agreement without the prior written consent of City. Executed at Pueblo, Colorado the day and year first above written. PUEBLO, A MUNICIPAL CORPORATION By� Presid t of the &y ` - C ouncil PUEBLO DEVELOPMENT FOUNDATION President [SEAL] ATTEST: PAL City Cle SEAL ATTEST: Secreta , -2- Reception #: 1126534 Date: 06/18/1996 Time: 222 Book: 2902 Page: 135 Chris C. Munoz •Inst: WD R Fee: 25.00 D Fee: 0.00 SC: 1.00 Pg: 1 of 5 Pueblo Co.C1k.&Rec. WARRANTY DEED THIS DEED, made this 28th day of May , 1996 by and between Pueblo, a municipal corporation, (herein "City ") and Pueblo Development Foundation, a Colorado nonprofit corporation (herein "Company "), WITNESSETH: That City for and in consideration of the sum of $10.00 and other good and valuable consideration to City in hand paid by the Company, the receipt whereof is hereby confessed and acknowledged, has granted, bargained, sold and conveyed, and by these presents does grant, bargain, sell, convey and confirm unto the Company, its successors and assigns forever, all the real property situate, lying and being at Pueblo Memorial Airport, County of Pueblo, State of Colorado, described as Lot 44, Pueblo Memorial Airport Industrial Park Subdivision and improvements thereon (herein "Property), with all its appurtenances, and warrant the title to the same, subject to easements, rights of way, restrictions and reservations of record and to the following covenants, conditions, and restrictions which are and shall be construed to be covenants running with the land described herein and binding upon the Company, its successors and assigns and inuring to the benefit of Pueblo, a Municipal Corporation (the "City "), its successors and assigns. 1. City reserves unto itself and its successors and assigns, for use and benefit of the public, a right of flight for the passage of aircraft in the airspace above the surface of the Property, together with the right to cause in the airspace above the surface of the Property such noise as may be inherent in the operation of any aircraft now known or hereafter used for navigation of or flight in said airspace, and for use of the airspace above the surface of the Property for landing on, taking off from, or operation on or over the Pueblo Memorial Airport. Book: 2902 Page: 136 Chris C. Munoz Page: 2 of 5 Pueblo Co.C1k.&Rec. 2. Company expressly agrees for itself, its successors and assigns to restrict the height of structures, objects of natural growth and other obstructions on the Property, to a height of not more than 4,690 feet above the mean sea level. In the event this covenant is breached, City reserves the right to enter upon the Property at the expense of the Company to remove the offending structure or object and to cut the offending growth. 3. Company expressly agrees for itself, its successors and assigns, that it will prevent any use of the Property which would interfere with landing or taking off of aircraft at the Pueblo Memorial Airport, or otherwise constitute an airport hazard. 4. The Property and its use are further subject to the following Restrictive Covenants: (a) The Property may be used only for industrial and manufacturing facilities and incidental office uses. The Property shall not be used for smelting or plating operations, or for the storage or processing of putrescible materials, or for any purpose or business which constitutes a nuisance, or which exceeds the state air pollution control standards for the facility. Gasoline or diesel fuel used in connection with the business conducted on the Property but not for sale at retail or wholesale may be stored on the Property in an environmentally sound manner. (b) Outdoor storage shall not be permitted except for storage of raw materials, inventory, manufactured products or equipment used in the facility. Parking areas for vehicles and roads on the Property shall be paved. (c) The Property shall not be subdivided and no building or structure over sixty (60) feet in height shall be installed or constructed on the Property. (d) No structure or building shall be constructed or installed nearer than sixty -five (65) feet of the right of way line of United Avenue or thirty -five (35) feet of the right of way line of any other abutting streets. There must be installed and maintained a minimum thirty -five (35) foot strip of living landscaped ground along and adjacent to United Avenue and twenty -five (25) feet adjacent to other abutting streets. Minimum side yards set -backs shall be twenty -five (25) feet. (e) Company shall keep and maintain the Property and all buildings, landscaping and improvements located thereon in a good, clean, safe and orderly condition free of waste, rubbish, debris and trash, provided that waste, rubbish, debris or trash produced on -site may be temporarily stored on the Property before being properly disposed of off -site if adequately screened and contained. Company shall enclose and screen from public view all outside storage and unsightly -2- Book: 2902 Page: 137 Chris C. Munoz areas of the Property. Page: 3 of 5 Pueblo Co.C1k.&Rec. (f) Company shall comply with notifications and review requirements of the Federal Aviation Administration prior to the construction, modification or alteration of any building or structure on the Property. (g) Company shall, at its own expense, cause all utilities and roads used or to be used on the Property to be extended from adjacent streets, installed on the Property, and kept and maintained in good order and condition. (h) Company shall pay to City a combined service fee for services and facilities now furnished by City at the Pueblo Memorial Airport, namely: public street maintenance, fire protection, and street lighting based upon $295.00 per acre per annum payable monthly for each acre of land conveyed to Company hereunder. City may, from time to time, reduce or eliminate any or all of the services or facilities presently being furnished and may modify, increase, or decrease the annual combined service fee provided (i) such services and fee shall be non - discriminatory among other tenants and owners of land at Pueblo Memorial Airport receiving such services and facilities, and (ii) such fee shall be reasonable in relation to City's actual cost and expense of furnishing the services and facilities then being furnished. City's cost may include the cost of capital improvements amortized over the useful life of the improvements. Wastewater discharged from the Property is transported to and treated at City's waste water treatment facilities, Company and the waste water so transported and treated are subject to the same restrictions, limitations, conditions, fees, and charges as other users of City's sanitary sewer system and facilities. (i) Company shall provide for storm water drainage which shall include the construction and installation of storm water detention facilities on the Property. The detention facility shall be capable of storing the developed on -site runoff from a 100 -year frequency storm. The maximum release rate from the detention facility at the ponding depth corresponding to the 10- year volume shall be .30 cfs /acre and 1.00 cfs /acre for the 100 -year ponding depth. All calculations and details shall conform with the City of Pueblo Storm Drainage Criteria Manual. The point of discharge from the detention facility shall be at a location approved by the Director of Public Works. 0) Before commencing the construction, installation or alteration of any building, structure, parking facility, outdoor sign, or other permanent improvement, or landscaping on the Property, the Company shall submit to and have approved by the City in writing the site plans and plans and specifications therefor. City's approval will not be unreasonably withheld. In the event the City or its designated representatives shall fail to approve or disapprove such plans and specifications within twenty -five (25) working days after they have been submitted to the City, such approval will not be required and this covenant will be deemed to have been complied with. Company shall use its best efforts to assure that all buildings constructed on the Property will be architecturally and aesthetically compatible with buildings constructed at the Pueblo Memorial Airport industrial park since 1985. All buildings, improvements and activities on the Property shall be constructed and conducted in compliance with all applicable federal, state and local law, Book: 2902 Page: 138 Chris C. Munoz Page: 4 of 5 Pueblo Co.C1k.&Rec. regulations, and codes. (k) City reserves the right to waive all or any part of these Restrictive Covenants. 5. At the request of City, Company shall meet and in good faith confer with City concerning the annexation of the Property to the City when the Pueblo Memorial Airport, or any part thereof, including without limitation, the Property becomes eligible for annexation. 6. Invalidation of any one of the foregoing covenants, conditions, restrictions or reservations by judgment or court order or otherwise shall not affect any of the other of said covenants, reservations, restrictions or conditions which shall remain in full force and effect. 7 City shall have the right to enforce the restrictions, covenants and conditions hereof �injuncti A- or ~'other lawful procedure and to recover damages, costs, expenses, including 4 je Onalx $trorney fees, resulting from any violation thereof or arising out of their enforcement. PUEBLO DEVELOPMENT FOUNDATION A B Presid tv �etary j [`f1L r ;• PUEBLO, A MUNICIPAL CORPORATION Presi nt of the City Council COUNTY OF PUEBLO ) ) ss. STATE OF COLORADO ) The foregoing instrument was acknowledged before me this (0 day of � 190by use !-�. �C)tZ - T� Nc) as President and ` vev� ���/PSI� as Secretary of Pueblo Development Foundation, a Colorado nonprofit corporation. H Book: 2 902 page' 13puebloiCoCClgu�Rec. Page: 5 of 5 Witness my hand and official seal. �M?Fpmmission expires k a 1' Ir �,�a' L 3; A� jL 1f COUNTY OF PUEBLO ) ) ss. STATE OF COLORADO ) G� 61 tary Public The foregoing instrument was acknowledged before me this 30th day of May 19 96by Fay B. Kastelic as President of the City Council and Gina Dutcher as City Clerk of Pueblo, a Municipal Corporation. Witness my hand and official seal. --l-.. " " " "'•My commission expires L' m*fA y L] t, N y Public PROMISSORY NOTE $689,884.00 April 22, 1996 FOR VALUE RECEIVED, the undersigned, Pueblo Development Foundation, a Colorado Nonprofit Corporation (the "maker "), promises to pay to the order of Pueblo, a Municipal Corporation (the "payee "), at payee's office in Pueblo, Colorado, or at the place of business of any subsequent holder hereof, or at such other place as the holder may designate in writing, the principal sum of $689,884.00 without interest. This note is payable in full upon demand but in no event later than August 1, 1996. Upon failure to make payment of principal as herein provided, or upon default in the performance of any provisions of the deed of trust securing this note, the entire principal sum shall, at the election of the holder hereof, at once become due and payable without notice, and shall thereafter bear interest at the rate of twelve percent (12 %) per annum until fully paid. Failure of the holder to exercise this election shall not constitute a wavier of the right to exercise the same in the event of any subsequent default. This note and all principal and interest payable hereunder are secured by a deed of trust of even date herewith upon real estate situated in the County of Pueblo, State of Colorado. In the event it becomes necessary to place this note in the hands of an attorney for collection or to foreclose the deed of trust securing this note by proceedings in court or with the Public Trustee, the maker hereof agrees to pay attorney's fees in a reasonable amount. The maker and all endorsers hereof severally waive presentment, protest, and demand, notice of protest, demand and of dishonor and nonpayment of this note, and expressly agree that this note or any payment hereunder may be extended from time to time by the holder hereof without in any way affecting the liability of the makers and endorsers hereof. Executed at Pueblo, Colorado the day and year first above written. [SEAL] PUEBLO DEVELOPMENT FOUNDATION Attest: Secretary President Recorded at_. Reception #: 1126535 Date: Inst: TD R Fee: 5.00 I THIS DEED OF TRUST, Made this _o'cloc M., 06/18/1996 Time: 223 Book: 2902 Page: D Fee: 0.00 SC: 1.00 Pg: 1 of 1 22nd day of April 140 Chris C. Munoz Pueblo Co.Clk. &Rec. 1996 between PUEBLO DEVELOPMENT FOUNDATION, a Colorado Nonprofit Corporation the grantor herein whose address is P. Box 1663 Pueblo, CO 81001 County of Pueblo and State of Colorado, and the PUBLIC TRUSTEE of the County or City and County in which the property described below is situated, in the State of Colorado, Witnesseth: The Grantor to secure its promissory notebO bearing even date herewith, for the total principal sumofSix hundred eighty nine thousand eight hundred eighty -four doll payable to the order of Pueblo, a Municipal Corporation ($689,884.01 the beneficiary herein whose address is 1 City Hall Place Pueblo Colorado , after the date thereof, with interest thereon from the date thereof at the rate of —0— percent per annum, principal and interest payable in full on demand but in no event later than August 1, 1996 does hereby grant and convey unto said Public Trustee the following described property, situate in the County of Pueblo , State of Colorado, to wit: Lot 44, Pueblo Memorial Airport Industrial Park Subdivision County of Pueblo, State of Colorado I also known as street and number United Avenue Pueblo, Colorado TO HAVE AND TO HOLD the same together with all appurtenances, in trust nevertheless, that in case of default in the payment of said mote or any part thereof or interest thereon, or in the performance of any covenants hereinafter set forth, then upon the beneficiary (note holder) filing notice of election and demand for sale, said Pub r lic Trustee, after advertising notice of said sale weekly, for riot less than four weeks, in some newspaper of general circulation in said county, shall sell said property in the manner provided by law in effect at the time of filing said notice and demand, at public auction forcash, at any proper place designated in the notice of sale. Out of the proceeds of said sale said Trustee shall retain or pay first all fees, charges and costs and all moneys advanced for taxes, Insurance and assessments, or on an) *y prior encumbrance, with interest thereon, and pay the principal and interest due on said note, rendering the overplus (if any) unto the grantor, and after the expiration of the time of redemption, said Trustee shall execute and deliver to the purchaser a deed to the property sold- The beneficiary may purchase said property or any part thereof at such sale. The grantor covenants that at the time of delivery of these presents, he is seized of said property in fee simple, and that said property is free ofencumbr ances, except none and that he will keep all buildings insured for fire and extended coverage in amount equal to the unpaid balance of said note with loss payable to the beneficiary, and will pay all taxes and assessments against said property and amounts due on prior encumbrances, and if he shall fail to pay insurance premiums, taxes or amounts due on prior en( unlbrance, the beneficiiiry may pay the same and a I • founts so paid shall become additional indebtedness due hereunder; and in case of for eclosure, he will pay an attorney's feeX in a reasona`�e amount .I' ' j1WlWtfi eneJiciary hereunder be made a party to any action affecting this deed of trust or the title to said property, the grantor agrees that all � I %sc r� e9st and a Vasonable attorney's fee paid by the beneficiary shall become additional indebtedness due hereunder; and the grantor does hereby t ; ` rTI rise lAm wJi;ae reclaims in said property as a homestead exemption or other exemption now or hereafter provided by law. • .•his agt to rat iy case of default in payment of said principal or interest or a breach of any of the covenants herein, then said principal sum hereby ^, . ecured and inhere ' VII -ereon may at the option of the beneficiary become due and payable at once, anything in said note to the contrary notwithstand- er ing apd possession g = %id property will thereupon be delivered to the beneficiary, and on failure to deliver such possession the beneficiary shall be entit o a rt*cei %er,for said property, who maybe appointed by any court of competent jurisdiction. eve^Ised herein the singular number shall include the plural, the plural the singular, and the use of any gender shall be applicable to all gen r. . All ri t I COYenants herein shall be binding upon the respective heirs, personal representatives, successors and assigns of the parties hereto. �; Fn uld a pta visio* of this Deed of Trust be found to violate the statutes or court decisions of the State of Colorado, or of the United States, such pr ft,,4on sha. 1, , mid to be amended to comply with and conform to such statutes and decisions. Execut the:day a✓,d year first above written. PUEBLO DEVELOPMENT FOUNDATION ars �-. - - - � /' B ! G II STATE OF COLORADO, ___.Coumyo(- - Pueb1 Q..-- --- - rSS. - -__— The foregoing instrument was acknowledged before me this 6th day of dune 9- 6,by•Joseph A. Fortino as President and SFev. h I ArVe,shOL,e as Secretary of M Commission ex Ires y Pueblo Development r �� Foundation, a Coioradcl .19 Non L' ro f i Witness my hand and official seal -� J i � I c orporation. It r:• ,,� !� t „ ` h ��' V i — - - - -- r - - Notary Public. • 1: ��� 923 B R'�V� "7$— DF.F.D OF TRUST TO PUBLIC TRUSTEE. (No— One on Sale Clause) — Short Form — .A _ - ��' . ' '•� Bradford Publi,hmg, S825 W. fish Ave.. Lakewood. CO 802I4 -- (101) 6900 — 1 - 82 .