HomeMy WebLinkAbout8371i
i1
RESOLUTION NO. 8371
A RESOLUTION AUTHORIZING THE CITY MANAGER OF
THE CITY OF PUEBLO TO APPROVE THE PAYMENT OF
CERTAIN EXPENSES RELATING TO THE PUEBLO
GOODWILL INDUSTRIES, INC., AND THE PRESIDENT OF
CITY COUNCIL TO EXECUTE AN AGREEMENT FOR
COMMUNITY DEVELOPMENT SERVICES WITH SUCH
AGENCY
WHEREAS, the City of Pueblo, pursuant to the Community Development Block Grant
Program (CDBG) under 24 CFR 570, has been a recipient of CDBG federal funds under the program
since 1975; and
WHEREAS, in accordance with the provisions of the Act and 24 CFR 570:201(e) a portion
of such financial assistance, subject to appropriation by the City Council, may be made available to
agencies and organizations for the purpose of providing certain services to low -and moderate income
persons; NOW THEREFOR
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PUEBLO,
COLORADO, that:
SECTION L
The City Council of the City of Pueblo approves the transfer of $30,000 to the Pueblo
Goodwill Industries, Inc., account for the purpose of paying certain invoices attached as Exhibit
"A' and the City Manager is authorized and directed to execute an agreement with the agency for
CDBG funding for the amount of $30,000. Payment of the i nvoi ces wi 11 come from the
CDBG program account 04- 1997- 400 -0 -40 -7402.
INTRODUCED: March 23 , 1998
B John Ver
ATTEST:
Councilperson
APPROVED:
,o
L� L,
City Cler
President ofAe Ck Council
7�?,\ COUNCILAGENDA
A RESOLUTION AUTHORIZING THE CITY
MANAGER OF THE CITY OF PUEBLO TO
APPROVE THE PAYMENT OF CERTAIN
EXPENSES RELATING TO THE PUEBLO
GOODWILL INDUSTRIES, INC., AND THE
PRESIDENT OF THE CITY COUNCIL TO
EXECUTE AN AGREEMENT FOR
COMMUNITY DEVELOPMENT SERVICES
WITH SUCH AGENCY
If DIM 16100
A. ISSUE:
Pooact 3-z3-")g
Agenda Item #
11 8 IV490 •'
A resolution authorizing ($30,000) of CDBG funds to be provided to Pueblo Goodwill
Industries, Inc., for payment of certain expenses.
B. RECOMMENDATION:
Approve the resolution, thus authoring the City Manager to approve those expenses
listed as Exhibit A
10101 [ij :ZsIif` D
The City Council members were presented with certain financial problems being experienced
by the Pueblo Goodwill Industries, Inc. Following a discussion at the March 2, 1998, work
session it was the consensus to prepare a resolution for the City Council March 23, 1998,
meeting . The Department of Housing and Community services has verified certain bills listed
as Exhibit A as actually due and details how the funds would be spent.
►: ► U
Payment of the invoices will come from the CDBG program account 04- 1997 - 400 -0 -40 -7402
IV. ALTERNATIVES
A. The City could elect to not approve the payment of the expenses and allow Pueblo
Good will to seek further financial assistance
B. The City could approve this resolution
PUEBI
EMERGENCY LOAN ASSISTANCE AGREEMENT
FOR
COMMUNITY DEVELOPMENT SERVICES
THIS AGREEMENT ( "Agreement ") is made and entered into this , 24th day of March,
1998 by and between the City of Pueblo, a Municipal Corporation, hereinafter referred to as the
"City," and Pueblo Goodwill Industries, Inc., a Colorado Nonprofit Corporation hereinafter referred
to as " Subrecipient."
WITNESSETH, that:
WHEREAS, the City has entered into grant agreements with the U.S. Department of Housing
and Urban Development ( "HUD ") whereby federal financial assistance ( "CDBG funds ") may be
made available to the City under Title I of the Housing and Community Development Act of 1974,
as amended to date (the "Act "); and
WHEREAS, pursuant to such grant agreements, City may undertake, directly or through
subrecipients and contractors, programs and activities authorized to be undertaken with such funds;
and
WHEREAS, the City desires to disburse funds to the Subrecipient to execute certain projects
and /or perform certain services in connection with such undertaking of the City; and
WHEREAS, Subrecipient has represented to City that it is duly qualified, eligible and willing
to undertake certain projects and/or services identified herein and in the Scope of Services attached
hereto; and
NOW, THEREFORE, in consideration of the foregoing recitals and the terms and conditions
set forth herein, the parties hereto do mutually agree as follows:
SCOPE OF SERVICES: RESPONSIBILITIES OF SUBRECIPIENT.
(a) Subrecipient agrees to satisfactorily perform and complete all services and items of
work, and furnish all labor and materials encompassed within or reasonably necessary to accomplish
the tasks and functions described in the Scope of Services attached hereto as Exhibit "A" and
incorporated herein by reference, in full compliance with all provisions of this Agreement. Such
activities shall be specifically designed to benefit low income families and individuals.
(b) Subrecipient warrants and represents that it: (i) has the requisite authority and
capacity to perform all terms and conditions on Subrecipient's part to be performed hereunder; (ii)
that it is duly organized as a non - profit organization under state law and is in good standing with the
Secretary of State of Colorado; (iii) that it is fully aware of and understands its duty to perform all
functions and services in accordance with the regulatory requirements of 24 CFR Part 570 and those
identified in Exhibit "C" hereto; and (iv) that it is accepting federal financial assistance hereunder
subject to certain mandatory repayment provisions.
2. RESPONSIBILITIES OF THE CITY.
The City shall designate a representative of the City who will be authorized to make all
necessary decisions required of the City on behalf of the City in connection with the performance
of this Agreement and the disbursement of funds in connection with the program. In the absence of
such a designation, the City's Director of Housing and Community Development shall be deemed
as City's authorized representative.
3. FINANCIAL ASSISTANCE AND METHOD OF PAYMENT
(a) Upon execution of a promissory note and all other documents required by City, the
City will loan to Subrecipient an amount up to that specified in subparagraph (c) of this paragraph
as the public investment in all services and work to be performed or undertaken by Subrecipient
under this Agreement. Disbursement of loan funds to Subrecipient may be periodic and each
disbursement is subject to all of the following requirements, which shall be conditions precedent to
payment: (i) that Subrecipient has expended funds for eligible approved expenditures, (ii) that
Subrecipient is not in default of any material provision of this Agreement nor applicable law or
regulation, (iii) that Subrecipient has timely submitted requests for loan disbursement detailing the
eligible loan drawdown items in a format approved by City, (iv) that Subrecipient has certified with
each payment or loan drawdown request compliance with the requirements identified in Exhibit "C"
and that all expenditures for which drawdown is sought were made for and in furtherance of the
approved program activities and are an eligible use of federal assistance under the Act and CDBG
regulations, and (v) that City has timely received from HUD sufficient federal assistance under the
Act to pay the disbursement hereunder.
(b) Payment hereunder is also subject to and may only be disbursed in accordance with
HUD regulations including but not limited to those at 24 CFR Part 570, as presently promulgated
and as same may be revised from time to time in the future. All payments received by Subrecipient
hereunder are subject to repayment by Subrecipient as provided in this Agreement and in 24 CFR
Part 570. Loan funds provided hereunder may only be used for activities specifically approved by
City's Director of Housing and Community Development.
(c) The maximum loan amount made hereunder shall not exceed Thirty Thousand
Dollars (U.S. $ 30.000 ).
(d) Upon expiration of the term of this agreement or upon any prior termination,
Subrecipient shall transfer to City any funds provided hereunder which are on hand at the time of
expiration or termination together with any accounts receivable attributable to the use of funds
provided hereunder.
(e) City may, at City's sole option, elect to make disbursements jointly payable to
-2-
Subrecipient and a payee specified by Subrecipient. However, no such disbursement shall create,
nor be construed to create, any obligation whatsoever to any payee named in such disbursement.
(f) The full amount of loan assistance provided to Subrecipient pursuant to this
Agreement shall constitute an indebtedness of Subrecipient to the City (or subsequent holder of the
Note) which shall be evidenced by a promissory note (hereinafter referred to as the "Promissory
Note" or "Note ") which shall be due and payable with interest as provided therein and which shall
be secured by the following real property located in Pueblo County, Colorado (the "Property "):
Lot 1, Block 1, Goodwill Subdivision, according to the plat thereof
recorded in Book 2706, at Page 257 of the Records of Pueblo County.
, as evidenced by a Deed of Trust to be executed contemporaneously with said Promissory Note.
Subrecipient promises to pay to City or holder the indebtedness as and to the extent same becomes
due under the provisions of the Promissory Note and this Agreement. The amount of the assistance
shall continue as an indebtedness until paid in full.
4. TERM OF AGREEMENT: REPAYMENT
(a) The term of this Agreement, with respect to making the loan contemplated herein and
disbursing loan proceeds, shall be from March 23, 1998 to September 30, 1998 unless sooner
terminated as herein provided. In the event the loan is made and funds are disbursed hereunder,
Subrecipient shall fully comply with all provisions of this Agreement, including but not limited to
Subrecipient's obligations to repay the loan, comply with restrictions on use of loan proceeds, and
recordkeeping obligations, which shall all survive the term of this Agreement or any termination
thereof.
(b) During the term of this Agreement and for so long as the Note remains unpaid, (i) any
failure by Subrecipient to perform any obligation, covenant or provision of the Note or this
Agreement required to be performed by Subrecipient, or (ii) any breach of any warranty made by
Subrecipient in this Agreement, or (iii) any other violation of any material term of this Agreement
or the Deed of Trust given to secure the Note, shall constitute a default under this Agreement and
the Note. Upon any default by Subrecipient, the entire indebtedness, together with accrued interest,
shall at the election of the holder, at once become immediately due and payable. Failure of the
holder to exercise this election shall not constitute a waiver of the right to exercise the same in the
event of any subsequent failure to make any payment or other default. If the entire indebtedness is
declared immediately due and payable by the holder pursuant to the provisions of the above
paragraphs, from and after the date of such declaration or acceleration the indebtedness shall accrue
interest at the rate of twelve percent (12 %) per annum until the date when the entire indebtedness
and such accrued interest is paid in full. Subrecipient further agrees that no release of any security
for the indebtedness or extension of time for payment of same, or any installment thereof, and no
alteration, amendment or waiver of any provision of the Note or the Deed of Trust securing same
shall in any manner, release, discharge, modify or affect the obligations of Subrecipient under this
-3-
Agreement, the Note and said Deed of Trust.
5. TERMINATION OF AGREEMENT
(a) For Cause This Agreement may be terminated by City for cause, including any
nonperformance by Subrecipient, upon ten (10) days written notice to Subrecipient including a
statement of the reasons therefor, and after an opportunity for a hearing has been afforded. If a
hearing is requested, it shall be held before the City's Director of Housing and Community
Development whose decision as to both the grounds for termination and the appropriateness thereof
shall be final and binding upon both City and Subrecipient. In accordance with 24 CFR 85.43, cause
for termination shall include any material failure by Subrecipient to comply with any term of this
Agreement.
(b) For Convenience This Agreement may be terminated by the City for convenience
in accordance with the provisions of 24 CFR 85.44. This Agreement shall terminate immediately
upon any non - appropriation of FY 1998 funds, or upon any suspension or non - receipt of federal
assistance provided to City under the Act, regardless of cause.
(c) Post Termination Procedures In the event of termination, Subrecipient shall continue
to be responsible for those matters which survive termination identified in paragraph 4 above, unless
City takes over the program and, in connection therewith, prospectively releases Subrecipient from
one or more specific responsibilities in writing. Additionally, at City's sole option, all property
acquired by Subrecipient with grant funds, all grant funds, program income, and mortgage loans
originated with grant funds or by payments therefrom and payments received under such mortgage
loans, held, owned or retained by Subrecipient shall immediately become the sole and separate
property of the City and Subrecipient shall perform all acts and execute all instruments necessary
to transfer and assign such property, funds, income, and mortgage loans to City. All finished or
unfinished documents, data, studies reports and work product prepared by Subrecipient under this
Agreement or with grant funds shall, at the option of the City, become its property.
6. ASSIGNABILITY
This Agreement shall not be assigned or transferred by Subrecipient without the prior written
consent of the City. Any assignment or attempted assignment made in violation of this provision
shall, at City's election, be deemed void and of no effect whatsoever.
7. CONFLICT OF INTEREST
The Subrecipient certifies and warrants that neither it nor any members of its Board of
Directors, officers or employees has or will derive any personal or financial interest or benefit from
the activity or activities assisted pursuant to this Agreement, nor has an interest in any contract ,
subcontract or agreement with respect thereto, nor the proceeds thereunder, either for themselves or
for those with whom they have family or business ties, during their tenure and for one year
M
thereafter. Subrecipient shall avoid all conflicts of interest which are prohibited by applicable
federal regulations, including but not limited to those set forth in 24 CFR Part 570 as presently
promulgated and as same may be revised from time to time in the future.
8. SUBRECIPIENT RECORDS.
Subrecipient shall maintain records as to all services provided, reimbursable expenses
incurred in performing the Scope of Services and complete accounting records. Accounting records
shall be kept on a generally recognized accounting basis and as requested by the City's auditor. The
Subrecipient agrees to comply with all applicable uniform administrative requirements described or
referenced in 24 CFR 570.502. The Compliance Provisions attached as Exhibit "B" hereto are made
a part of this Agreement and Subrecipient agrees to perform and comply with same. The City, HUD,
the Comptroller General of the United States, the Inspector General of HUD and any of their
authorized representatives, shall have the right to inspect and copy, during reasonable business
hours, all books, documents, papers and records of the Subrecipient which relate to this Agreement
for the purpose of making an audit or examination. Upon completion of the work and end of the
term of this Agreement, the City may require all of Subrecipient's financial records relating to this
Agreement to be turned over to City.
9. MONITORING AND EVALUATION.
The City shall have the right to monitor and evaluate the progress and performance of the
Subrecipient to assure that the terms of this Agreement are being satisfactorily fulfilled in
accordance with HUD's, City's and other applicable monitoring and evaluation criteria and standards.
The City shall at least quarterly review the Subrecipient's performance using on -site visits, progress
reports required to be submitted by the Subrecipient, audit findings, disbursement transactions and
contact with the Subrecipient as necessary. The Subrecipient shall furnish to the City monthly or
quarterly program and financial reports of its activities in such form and manner as may be requested
by the City. Subrecipient shall fully cooperate with City relating to such monitoring and evaluation.
10. SUBRECIPIENT FILES AND INFORMATION REPORTS
The Subrecipient shall maintain files containing information which shall clearly document
all activities performed in conjunction with this Agreement, including, but not limited to, financial
transactions, conformance with assurances, activity reports, and program income. These records
shall be retained by the Subrecipient for a period of three years after the completion of the project.
Activity reports shall be submitted monthly or quarterly no later than the ninth day of the month
following the end of month or quarter for which the report is submitted.
11. INDEPENDENCE OF SUBRECIPIENT.
Nothing herein contained nor the relationship of Subrecipient to City, which relationship is
expressly declared to be that of an independent contractor, shall make or be construed to make
-5-
Subrecipient or any of Subrecipient's agents or employees the agents or employees of the City.
Subrecipient shall be solely and entirely responsible for its acts and the acts of its agents, employees
and subcontractors.
12. LIABILITY: INSURANCE.
(a) As to the City, Subrecipient agrees to assume the risk of all personal injury, including
death and bodily injury, and damage to and destruction of property, including loss of use therefrom,
caused by or sustained, in whole or in part, in conjunction with or arising out of the performance or
nonperformance of this Agreement by Subrecipient or by the conditions created thereby.
Subrecipient further agrees to indemnify and save harmless the City, its officers, agents and
employees, from and against any and all claims, liabilities, costs, expenses, penalties and attorney
fees arising from such injuries to persons or damages to property or based upon or arising out of the
performance or nonperformance of this Agreement by Subrecipient or out of any violation by
Subrecipient of any statute, ordinance, rule or regulation.
(b) Subrecipient agrees that it shall procure and will maintain during the term of this
Agreement, such insurance as will protect it from claims under workers' compensation acts, claims
for damages because of personal injury including bodily injury, sickness or disease or death of any
of its employees or of any person other than its employees, and from claims or damages because of
injury to or destruction of property including loss of use resulting therefrom; and such insurance will
provide for coverage in such amounts as set forth in subparagraph (c).
(c) The minimum insurance coverage which Subrecipient shall obtain and keep in force
is as follows:
(i) Workers' Compensation Insurance complying with statutory requirements in
Colorado.
(ii) Comprehensive General and Automobile Liability Insurance with limits not
less than Six Hundred Thousand and No/ 100 Dollars ($600,000.00) per person and occurrence for
personal injury, including but not limited to death and bodily injury, and Six Hundred Thousand and
No/ 100 Dollars ($600,000.00) per occurrence for property damage.
(d) In the event Subrecipient's obligations under this Agreement are secured by a deed
of trust or mortgage instrument as provided in paragraph 14(c) of this Agreement, Subrecipient
agrees to procure and maintain, at its own expense, hazard and fire insurance upon the property
described in said deed of trust on an "all risk" form in such amounts as City's Department of Housing
and Community Development may require, but in any event, for not less than the amount of all liens
against the property and the amount of funds provided by City pursuant to this Agreement.
Subrecipient shall furnish a certificate of insurance certifying such coverage to City's Director of
Finance prior to disbursement of any funds to Subrecipient. Both said certificate of insurance and
the policy procured by Subrecipient shall name the City as a loss payee.
KIM
13. CERTIFICATIONS.
The Subrecipient agrees to execute and abide by the certifications contained in Exhibit "C"
hereto, which are hereby made a part of this Agreement.
14. PROGRAM INCOME; REVERSION OF ASSETS
(a) Unless otherwise authorized by City in writing, all program income shall be returned
to City within 30 days of receipt by Subrecipient. In the event City authorizes Subrecipient to retain
any portion of program income, it shall only be used to accomplish the work set forth in the Scope
of Services, and the amount of grant funds payable by City to Subrecipient shall be adjusted as
provided by 24 CFR §570.504(b)(2)(i) and (ii).
(b) Upon expiration of the term of this Agreement, or upon any prior termination,
Subrecipient shall transfer to City any funds provided hereunder which are on hand at the time of
expiration or termination together with any accounts receivable attributable to the use of funds
provided hereunder.
(c) Any real property under Subrecipient's control that was acquired or improved in
whole or in part with funds provided pursuant to this Agreement in excess of U.S. $25,000 shall
either (i) be used to meet one of the national objectives set forth in 24 CFR §570.208 until five years
after expiration or termination of this Agreement, or (ii) not be used in accordance with subparagraph
(c)(i), in which event Subrecipient shall pay to City an amount equal to the current market value of
the property less any portion of the value attributable to expenditures of funds not provided under
this Agreement for the acquisition of, or improvement to, the property. The use restriction and
repayment obligation set forth in this subparagraph shall survive termination or expiration of this
Agreement and shall be fully enforceable and subject to collection by City or HUD in accordance
with applicable laws. If requested by City, Subrecipient shall execute a deed of trust or mortgage
instrument which shall be and constitute a lien upon all real property acquired or improved with
funds provided hereunder, and which shall secure all obligations of Subrecipient hereunder.
(d) In the event City incurs any cost or expense in enforcing the requirements of this
paragraph 14 or in bringing any action to recover the property or amount of any repayment
obligation, City shall be entitled to recover its costs and expenses, including reasonable attorneys
fees.
15. SPECIAL REQUIREMENTS APPLICABLE TO IMPROVEMENTS TO
PROPERTY
(a) In addition to all procurement requirements otherwise applicable to Subrecipient
pursuant to any other provision of this Agreement or pursuant to any requirement of law or
regulation incorporated in this Agreement by reference, if any portion of the funds provided to
Subrecipient under this Agreement is to be used for making improvements to real property, including
-7-
new construction, rehabilitation, or remodeling, then in such event Subrecipient shall comply with
all requirements of this Paragraph 15.
(b) No improvements shall be undertaken to real property with funds (or reimbursement)
provided hereunder unless and until: (i) plans and specifications therefor have been prepared by
either a registered Professional Engineer in good standing and duly licensed to practice in the State
of Colorado or an Architect duly licensed and authorized to conduct a practice of architecture in the
state of Colorado; (ii) such plans and specifications have been filed with the City and approved by
both the City's designated representative and the City's Director of Public Works; and (iii) all
construction contracts for improvements for which payment is sought from City shall have been
awarded only after an open, competitive bidding process which has been approved by City's Director
of Purchasing and which allows qualified contractors to reasonably participate in the competitive
bidding procedures.
(c) If this Paragraph 15 is applicable, no disbursement of funds to Subrecipient shall be
made by City hereunder unless and until all conditions precedent to payment specified elsewhere in
this Agreement have been satisfied and Subrecipient files with City's Director of Housing and
Community Development a written request for payment signed by an officer of Subrecipient that
certifies (i) that the amounts included in the request for payment have not been included in any prior
request for payment, and (ii) that the improvements listed therein for which payment is sought have
been completed in accordance with the approved plans and specifications therefor.
(d) In every contract for construction of improvements for which payment or
reimbursement from City is to be provided under this Agreement, Subrecipient shall include a
contract clause or clauses, approved by City's Director of Purchasing, requiring the contractor, and
all of the contractor's subcontractors of all tiers, to comply with the requirements of the Davis -Bacon
Act and implementing regulations, and to pay all laborers and mechanics engaged in work upon the
improvements at the prevailing wage rates for such work as determined by the U.S. Department of
Labor.
16. RECOGNITION OF HUD, CITY.
In all printed materials, project descriptions and other activities undertaken with funds
provided under this Agreement, Subrecipient shall provide recognition that funds have been
provided by the U.S. Department of Housing and Urban Development and the City of Pueblo.
Recognition shall be accomplished by prominent disclosure of the role of HUD and the City in all
such printed materials and project signage, if any.
17. ENTIRE AGREEMENT: AMENDMENTS.
The provisions set forth in this Agreement, and all Exhibits and attachments to this
Agreement, constitute the entire and complete agreement of the parties hereto and supersede all prior
written and oral agreements, understandings or representations related thereto. No amendment or
in
modification of this Agreement, and no waiver of any provision of this Agreement, shall be binding
unless made in writing and executed by the duly authorized officers of both the Subrecipient and
City.
18. SIGNATURES The persons signing this agreement on behalf of Subrecipient
represent, and warrant that such persons and Subrecipient have the requisite power and authority to
enter into, execute and deliver this Agreement and that this Agreement is a valid and legally binding
obligation of Subrecipient enforceable against Subrecipient in accordance with its terms.
IN WITNESS WHEREOF, the Subrecipient and the City have executed this Agreement as
of the date first above written and under the laws of the State of Colorado.
ATTEST:
i M''k
3�
CITY OF PUEBLO,
A MUNICIPAL CORPO TION
BY: a
Presid (at of t e City Council
Subrecipient:
[SEAL]
ATTEST:
N
T
PUEBLO GOODWILL INDUSTRIES. INC..
A COLORADO NONPROFIT CORPORATION
Name: LZ2 hE 'c ) F- T _
Title: � tt�ca�t �.�c� ja- -k Z�
F:\ FILES \CITY \HOUSING \GOOD�nL \AGREEMEN. WPD
EXHIBIT A
GOODWILL BILLS
Bills received and verified for Goodwill Industries by The
City of Pueblo as of March 17, 1998, total $29,759.73.
Bills received and verified:
-- Meadow Gold Dairies
$
972.71
-- Board of Water Works
$
142.66
-- Waste Management of Pueblo
$
6,741.34
-- Westplains Energy
$
1,905.32
-- McLeod USA
$
687.08
-- Public Service Co.
$
4,550.47
-- School District 70
$10,129.98
-- Tallman Oil
$
1,424.44
-- TMP Management
$
2,680.11
-- Lucent Technologies
$
62.20
-- Andrews Produce
$
463.42
Total All Bills $29,759.73
PROMISSORY NOTE
U.S. $30,000.00
Pueblo, Colorado
March 24 , 1998
FOR VALUE RECEIVED, the undersigned (Borrower) promises to pay to the City of Pueblo,
a Municipal Corporation or order (Note Holder) the principal sum of Thirty Thousand and No /100
($30,000.00) U.S. Dollars, with interest on the unpaid balance from date hereof, until paid, at the rate
of zero percent (o %) per annum. Principal and interest shall be payable at 1 City Hall Place, Pueblo,
Colorado, 81003, or such other place as the Note Holder may designate, in twelve (12) equal
consecutive monthly payments of $2,500.00 each due on the 1 st day of each month, beginning January
1, 1999. Such payments shall continue until the entire indebtedness evidenced by this Note is fully
paid; provided, however, if not sooner paid, the entire principal amount outstanding and accrued interest
thereon, shall be due and payable on December 1, 1999.
Borrower shall pay to the Note Holder a late charge of five percent (5 %) of any payment not
received by the Note Holder within fifteen (15) days after the payment is due.
Payments received for application to this Note shall be applied first to the payment of late
charges, if any, second to the payment of accrued interest, and the balance applied in reduction of the
principal amount hereof.
This Note and all amounts payable hereunder are secured by a deed of trust of even date
herewith upon real property situated in Pueblo County, State of Colorado and described as follows:
Lot 1, Block 1, Goodwill Subdivision, according to the plat thereof
recorded in Book 2706, at Page 257 of the Records of Pueblo County.
If any payment required by this Note is not paid when due, the entire principal amount
outstanding and accrued interest thereon shall at once become due and payable at the option of the Note
Holder. To exercise this option, the Note Holder shall give Borrower notice of acceleration specifying
the amount of nonpayment; and such notice shall be deemed given upon mailing same by first class
mail, postage prepaid, to the address stated below for Borrower. The Borrower shall have ten (10) days
after the notice of acceleration has been given to reinstate the terms of this Note by paying the amount
of nonpayment. Unless so reinstated, the indebtedness shall bear interest at the increased rate of twelve
(12) percent per annum from the date notice of acceleration is given.
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,
Borrower agrees to pay all reasonable costs and expense of collection and /or suit, and of any
foreclosure, and including but not limited to reasonable attorney fees.
Borrower may prepay the principal amount outstanding under this Note, in whole or in part, at
any time without penalty.
Any partial prepayment shall be applied against the principal amount outstanding and shall not
postpone the due date of any subsequent payments or change the amount of such payments.
Presentment, notice of dishonor, and protest are hereby waived by Borrower and all other
makers, sureties, guarantors and endorsers hereof. This Note shall be the joint and several obligation
of Borrower and all other makers, sureties, guarantors and endorsers, and their successors and assigns.
BORROWER:
PUEBLO GOODWILL INDUSTRIES, INC.,
a Colorado Nonprofit Corporation
Borrower's Address: By _ rc arc
250 S. Santa Fe Avenue Title: CY
Pueblo, CO 81003 Employer I.D. No. gy•_ o y 33 q /
-2-
1
1213005 04/08/1998 08:06A B3107 P358 TD
1 of 3 R 16.00 D 0.00 Pueblo Cty Clk & Rec.
DEED OF TRUST
(Community Housing Development Services)
THIS DEED OF TRUST, made this 24th day of March
Goodwill Industries, Inc. a Colorado Nonprofit Corporation, whose address is _
Pueblo CO 81003 , hereinafter referred to as
"Borrower ", and the Public Trustee of the County of Pueblo, in the State of Colorado, hereinafter referred to as
"Trustee ", WITNESSETH:
WHEREAS, the Borrower has entered into an Emergency Loan Assistance Agreement dated the 24th day
of March , 1998 with the City of Pueblo, a Municipal Corporation, hereinafter referred to as the
"Agreement "; and
WHEREAS, the Borrower has executed a Promissory Note, hereinafter referred to as the "Note ", dated the
24th day of March , 1998 for the principal sum of Thirty Thousand and No /100 Dollars
($30.000.00) payable to the order of the City of Pueblo, a Municipal Corporation, which amount is an indebtedness of
Borrower payable with interest in accordance with the terms of said Note; and,
WHEREAS, the Borrower is desirous of securing performance of all obligations of Borrower under said
Agreement and Note and payment of the indebtedness as specified therein.
NOW, THEREFORE, the Borrower, in consideration of the premises and for the purpose aforesaid, does
hereby grant, bargain, sell and convey unto Trustee in trust forever, for the use and benefit of the City of Pueblo, a
Municipal Corporation (the "Beneficiary"), the following described property, situate in the County of Pueblo, State of
Colorado to wit:
Lot 1, Block 1, Goodwill Subdivision, according to the plat thereof
recorded in Book 2706, at Page 257 of the Records of Pueblo County.
also known as street and number 250 S. Santa Fe Avenue, Pueblo, Colorado, 81001.
TO HAVE AND TO HOLD the same, together with all and singular the privileges and appurtenances thereunto
belonging: In Trust Nevertheless, That in case of default in the Note or any part thereof or payment as specified therein,
according to the tenor and effect of said Note, or in the payment of any prior encumbrances, principal or interest, if any,
or in case of a breach of any term of the Agreement, or in case default shall be made in or in case of violation or breach
of any of the terms, conditions, covenants or agreements herein contained, the Beneficiary hereunder may declare a
violation of any of the covenants herein contained and elect to advertise said property for sale and demand such sale,
then, upon filing notice of such election and demand for sale with the Trustee, who shall upon receipt of such notice
of election and demand for sale cause a copy of the same to be recorded in the recorder's office of the county in which
said real estate is situated, it shall and may be lawful for said Trustee to sell and dispose of the same (en masse or in
separate parcels, as the said Trustee may think best), and all the right, title and interest of Borrower, its successors or
assigns therein, at public auction at the south front door of the Court House, in the County of Pueblo, State of Colorado,
or on said premises, or any part thereof as may be specified in the notice of said sale, for the highest and best price the
same will bring in cash, four weeks' public notice having been previously given of the time and place of such sale, by
advertisement, weekly, in some newspaper of general circulation at that time published in said County of Pueblo, a copy
of which notice shall be mailed within ten days from the date of the first publication thereof to the Borrower at the
address herein given and to such person or persons appearing to have acquired a subsequent record interest in said real
estate at the address given in the recorded instrument; where only the county and state is given as the address then such
notice shall be mailed to the county seat, and to make and give to the purchaser or purchasers of such property at such
sale, a certificate or certificates in writing describing such property purchased, and the sum or sums paid therefor, and
the time when the purchaser or purchasers (or other person entitled thereto) shall be entitled to a deed or deeds therefor,
unless the same shall be redeemed as is provided by law; and said Trustee shall, upon demand by the person or persons
holding the same certificate of purchase, when said demand is made, or upon demand by the person entitled to a deed
to and for the property purchased, at the time such demand is made, the time for redemption having expired, make and
execute to such person or persons a deed or deeds to the said property purchased, which said deed or deeds shall be in
the ordinary form of a conveyance, and shall be signed, acknowledged and delivered by the said Trustee, as grantor,
and shall convey and quit -claim to such person or persons entitled to such deed, as grantee, the said property purchased
as aforesaid and all the right, title, interest, benefit and equity of redemption of the Borrower, its successors and assigns
therein, and shall recite the sum or sums for which the said property was sold and shall refer to the power of sale therein
contained, and to the sale or sales made by virtue thereof, and in case of an assignment of such certificate or certificates
of purchase, or in case of the redemption of such property, by a subsequent encumbrancer, such assignment or
redemption shall also be referred to in such deed or deeds; but the notice of sale need not be set out in such deed or
deeds and the said Public Trustee shall, out of the proceeds or avails of such sale, after first paying and retaining all fees,
charges and costs of making said sale, pay to the Beneficiary hereunder or the legal holder of the indebtedness, all
moneys and amounts due, according to the tenor and effect thereof, and all moneys advanced by such Beneficiary or
legal holder of said indebtedness for insurance, taxes and assessments, with interest thereon at 12 per cent per annum,
rendering the overplus, if any, unto the said Borrower, his legal representatives or assigns; which sale or sales and said
1998, between Pueblo
250 S Santa Fe Avenue
I111111I11t1 Iltll IIIII111111 1111111111111111111 IN
1213005 04/08/1998 08:06A 83107 P359 TD
2 of 3 R 16.00 D 0.00 Pueblo Cty Clk $ Rec.
deed or deeds so made shall be a perpetual bar, both in law and equity, against the Borrower, its successors and assigns,
and all other persons claiming the said property, or any part thereof, by, from, through or under said Borrower, or any
of them. The Beneficiary or holders of the indebtedness may purchase said property or any part thereof; and it shall
not be obligatory upon the purchaser or purchasers at such sale to see to the application of the purchase money. If a
release deed be required, it is agreed that Borrower, its successors and assigns, will pay the expense thereof.
And the Borrower, for itself and for its successors and assigns covenants and agrees to and with the Trustee,
that at the time of the ensealing of and delivery of these presents he is well seized of the said land and tenements in fee
simple, and has good right, full power and lawful authority to grant, bargain, sell and convey the same in the manner
and form as aforesaid; hereby fully and absolutely waiving and releasing all rights and claims he may have in or to said
lands, tenements and property as a Homestead Exemption, or other exemption, now existing or which may hereafter
be enacted in relation thereto and that the same are fee and clear of all liens and encumbrances whatever, except for
Deed of Trust dated in favor of
recorded in Book , at Page
of the records of Pueblo County, and except for
and the above bargained property in the quiet and peaceable possession of the said Trustee, his successors and assigns,
against all and every person or persons lawfully claiming or to claim the whole or any part thereof, the said Borrower
shall and will Warrant and Forever Defend.
And that during the continuance of said Note or the indebtedness arising thereunder, the said Borrower will
in due season pay all taxes and assessments levied on said property; all amounts due on account of principal and interest
on prior encumbrances, if any; and will keep all buildings that may at any time be on said lands, insured against loss
by fire with extended coverage endorsements in a company authorized to issue such insurance in the State of Colorado,
for such sum or sums as such company or companies will insure for, not to exceed the amount of said indebtedness and
any prior encumbrances, except at the option of said Borrower, with loss, if any, payable to the Beneficiary hereunder,
as its interest may appear, and will deliver the policy or policies of insurance to the Beneficiary hereunder, as further
security for the indebtedness aforesaid. And in case of the failure of Borrower to thus insure and deliver the policies
of insurance, or to pay such taxes or assessments or amounts due or to become due on any prior encumbrances, if any,
then the Beneficiary may procure such insurance, or pay such taxes or assessments or amount due upon prior
encumbrances, if any, and all moneys thus paid, with interest thereon at 12 per centum per annum, shall become so
much additional indebtedness, secured by this Deed of Trust, and shall be paid out of the proceeds of the sale of the
property aforesaid, if not otherwise paid by Borrower, and Beneficiary may for such failure declare a violation of this
covenant and agreement.
If all or any part of the property or an interest therein is sold or transferred by Borrower without Beneficiary's
prior written consent, excluding the creation of a lien or encumbrance subordinate to this Deed of Trust, Beneficiary
may, at Beneficiary's option, declare all the sums secured by this Deed of Trust to be immediately due and payable. As
used in this paragraph, the term "sold" or "transferred" shall also be deemed to mean a sale or transfer of (i) any
ownership or partnership interest held by any of the general or limited partners in Borrower, or (ii) more than 2% of the
stock, partnership or ownership of any entity which is a general partner in Borrower.
AND THAT IN CASE OF ANY DEFAULT, Whereby the right of foreclosure occurs hereunder, the Trustee
or the Beneficiary or holder of certificate of purchase, shall at once become entitled to the possession, use and enjoyment
of the property aforesaid, and to the rents, issues and profits thereof, from the accruing of such right and during the
pendency of foreclosure proceedings and through the period of redemption, if any there be; and such possession shall
at once be delivered to the Trustee or the Beneficiary or the holder of the certificate of purchase on request, and on
refusal, the delivery of such possession may be enforced by the Trustee or the Beneficiary or holder of the certificate
of purchase by any appropriate civil suit or proceeding, and the Trustee or Beneficiary or the holder of the certificate
of purchase, or any thereof, shall be entitled to a Receiver for said property, and of the rents, issues and profits thereof,
after such default, including the time covered by foreclosure proceedings and the period of redemption, if any there be,
and shall be entitled thereto as a matter of right without regard to the solvency or insolvency of the Borrower or of the
then owner of said property and without regard to the value thereof, and such Receiver may be appointed by any court
of competent jurisdiction upon ex parte application and without notice -- notice being hereby expressly waived - -and all
rents, issues and profits, income and revenue therefrom shall be applied by such Receiver to the payment of the
indebtedness hereby secured, according to the law and the orders and directions of the Court.
AND, That in case of default in any of said payments of principal or interest, according to the tenor and effect
of said Note aforesaid, or any part thereof, or a breach of any term of the Agreement, or of a breach or violation of any
of the covenants or agreements herein, by the Borrower, its successors or assigns, then and in that case the whole of the
indebtedness hereby secured, and the interest thereon to the time of the sale, may at once, at the option of the Beneficiary
or the legal holder of the indebtedness, become due and payable, and the said property be sold in the manner and with
the same effect as if said indebtedness had matured, and that if foreclosure be made by the Public Trustee, a reasonable
attorney's fee for services in the supervision of said foreclosure proceedings shall be allowed by the Public Trustee as
part of the cost of foreclosure, and if foreclosure be made through the courts a reasonable attorney's fee shall be taxed
by the court as a part of the costs of such foreclosure proceedings.
-2-
111111111111111111111111111111111111111111111111111111
1213005 04/08/1998 08:06A 83107 P360 TD
3 of 3 R 16.00 D 0.00 Pueblo Cty Clk 8 Rec.
If any notice of default under the Note or this Deed of Trust or notice of acceleration of the maturity of the
indebtedness is given to Borrower, irrespective of any legal obligation to do so, a copy of said notice shall also be given
to the Primary Lender; provided, however, that nothing in this paragraph is intended, nor shall it be construed, to grant
any rights whatsoever to Borrower or create any condition precedent to the exercise of any right or remedy by the
Beneficiary; nor shall any noncompliance with the requirements of this paragraph constitute any defense against
enforcement of the Note or this Deed of Trust, including without limitation, Beneficiary's right to accelerate maturity
of the entire indebtedness and demand sale of the said property.
Should any provisions 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 provision shall be deemed to be amended to comply with and conform to such
statutes and decisions.
IN WITNESS WHEREOF, the Borrower has hereunto set its hand and seal the day and year first above written.
By
Na;�e -b-"n-A
Title: r �1
STATE OF COLORADO
COUNTY OF PUEBLO
ss.
BORROWER:
PUEBLO GOODWILL INDUSTRIES, INC.,
a Colorado Nonprofit Corporation
Name: ,�4 LWq i C % • A ".D4 50 A)
Title: el�h p C►8t�
The foregoing instrument was acknowledged before me in Pueblo County, Colorado, this J4q day of
as
and --�� �Li� Z`',. , the PuebCo Goodwill
\
In ustries, Inc., a Colorado Nonprofit Corporation.
Witness my hand and official seal.
My commission expires:��
[S E A L]
41 � Srr � • : 'Q
Notary Public
F: \FILES \CI "rY\HOUSING \GOODWILL \DEEDTRST.WPD _3_
Jost
1 111fA; % - \
Notary Public
F: \FILES \CI "rY\HOUSING \GOODWILL \DEEDTRST.WPD _3_