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HomeMy WebLinkAbout8115I RESOLUTION NO. 8115 A RESOLUTION APPROVING ADDENDUM NO. 4 TO THE AGREEMENT BETWEEN PUEBLO, A MUNICIPAL CORPORA- TION AND ESTRADA FOODS, INC. RELATING TO A JOB CREATING CAPITAL IMPROVEMENT PROJECT BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1 Addendum No. 4 to the November 13, 1995 Agreement between Pueblo, a Municipal Corporation and Estrada Foods, Inc. relating to a job creating capital improvement project, a copy of which is attached hereto, having been approved as to form by the City Attorney, is hereby approved. SECTION 2 The President of the City Council is authorized to execute and deliver Addendum No. 4 in the name of the City and the City Clerk is directed to attest same. ATTEST: City Cler INTRODUCED: April 28 , 1997 By John Verna Councilperson APPROVED: & ' -a ' e �' A'ec-p— — President of the ity C uncil ADDENDUM NO. 4 - (�X l THIS ADDENDUM NO.4 entered into as of April �, 1997 between Pueblo, a Municipal Corporation (the "City ") and Estrada Foods, Inc., a Colorado corporation (the "Company "), WITNESSETH: WHEREAS, City and Company entered into an Agreement dated November 13, 1995 with respect to a job creating capital improvement project and Addendum Nos. 1, 2 and 3 thereto (collectively, the "Agreement "), and WHEREAS, Company's cost to construct Improvements is greater than originally estimated, and WHEREAS, Company has requested City to increase City Funds for the cost of Improvements, and WHEREAS, Company and City are desirous of amending the Agreement to provide for additional City Funds. NOW, THEREFORE, in consideration of the foregoing and mutual covenants contained hereon, the parties agree as follows: 1. The capitalized terms in this Addendum No. 4 shall have the same meaning as those terms are used in the Agreement. 2. Company represents and warrants to City that the cost of Improvements is greater than the $1,150,000 City Funds by about $215,000, and based upon such representation and warranty, City is willing to advance additional City Funds equal to one -half of the costs of improvements over $1,150,000 but in no event greater than the sum of $100,000. Therefore, the first sentence of paragraph 2 of the Agreement is amended to read: 2. City will make available to or for the benefit of Company finds in the amount of $1,250,000 (tile "City Funds "). 3. Prior to the City advancing the additional $100,000 City Funds for Improvements, Company shall file with the Director of Finance of City in addition to the documents required by paragraph 2(c) of the Agreement, the following: (a) Satisfactory evidence that the cost of Improvements has exceeded $1,150,000 by $200,000 or more, and that Company has paid at least one -half of the excess cost. 4. The multiplier in paragraph 4(a) is amended and changed from $186.70 to $202.92, and the last sentence of paragraph 4(a) is amended to read: For example, if for the Quarter ending June 1999 the Quarterly Employees is 190, the amount payable to City on or before July 15, 1999 would be $6,087.60 [(220 -190) x $202.92 = $6,087.601. 5. The Agreement as amended by this Addendum No. 4 shall remain in full force and effect and be binding upon and inure to the benefit of City and Company and their respective successors and assigns. Executed in Pueblo, Colorado as of the day and year first above written. ESTRADA FOODS, INC. By � uc c P esident A rfiEzz Secretary PUEBLO, A MUNICIPAL CORPORATION By �f President of tip City uncil ATTEST: j City CI , i CONSENT AND APPROVAL We, the undersigned Guarantors of Estrada Foods, Inc.'s obligations under the Agreement dated November 13, 1995 between the Pueblo, a Municipal Corporation and Estrada Foods, Inc. as amended by Addendum Nos. 1, 2 and 3 (collectively, the "Agreement ") do hereby consent to and approve the above Addendum No. 4 and the modifications to the Agreement contained therein without waiving, modifying. discharging or in any manner affecting our liability or obligations under our Continuing Guaranty dated January 22, 1996 (the "Continuing Guaranty "), except that the liability of Guarantors tinder the Continuing Guaranty shall not exceed at any one time the principal sum of $1.250,000 instead of the $1,150,000 set forth in the Continuing Guaranty. We do herchy reaffirm, ratify, accept and agree to all the terms, conditions, and provisions of the Continuing Guarantee as modified herein. Signed as of April /C , 1997. I CITY F.CO '-DF.Y F.STR ADA'ADDNDVLNTO -2