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HomeMy WebLinkAbout8851RESOLUTION NO. 8851 A RESOLUTION APPROVING AN EXTENSION AGREEMENT BETWEEN THE CITY OF PUEBLO, A MUNICIPAL CORPORATION AND FOUNTAIN FOUNDRY, INC., RELATING TO A JOB - CREATING CAPITAL IMPROVEMENT PROJECT WHEREAS, the City of Pueblo (the "City ") and Fountain Foundry, Inc. ( "Company ") entered into an Agreement dated April 11, 1997 whereby City advanced funds to Company with respect to a job- creating capital improvement project, and WHEREAS, Company has requested its Repayment Obligation be extended, and WHEREAS, City is willing to extend the Repayment Obligation, NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. The Extension Agreement dated as of October 25, 1999 between the City and Fountain Foundry, Inc., a copy of which is attached hereto, having been approved as to form by the City Attorney, is hereby approved. The President of the City Council is authorized to execute and deliver the Extension Agreement in the name of the City and the City Clerk is directed to affix the seal of the City thereto and attest same. ATTEST: Cit Clerk INTRODUCED: November 22, 1999 By Cathy A. Garcia Councilperson APP VED: 9 President of City Council CITY COUNCIL BACKGROUND MEMORANDUM - NOVEMBER 22, 1999 AGENDA - APPROVING AN EXTENSION AGREEMENT BETWEEN THE CITY AND FOUNTAIN FOUNDRY, INC. The attached Resolution approves an Extension Agreement dated October 25, 1999 between the City and Fountain Foundry, Inc. whereby Fountain Foundry, Inc.'s Repayment Obligation under its August 11, 1997 Agreement with the City will be suspended from March 1, 1999 to September 30, 2000 and be extended to March 1, 2005 in order to allow Fountain Foundry, Inc. to meet its employment commitment of 35 full -time employees in addition to its August 1997 35 fulltime employees. Fountain Foundry, Inc.'s employment level has remained around 50 to 52 fulltime employees since March 1, 1999. EXTENSION AGREEMENT THIS EXTENSION AGREEMENT entered into as of October 25, 1999 between the City of Pueblo, a municipal corporation (the "City "), Fountain Foundry, Inc., a Colorado corporation (the "Company "), WITNESSETH, WHEREAS, Company and City entered into an agreement dated August 11, 1997 whereby City advanced funds to Company and Company agreed to repay the City funds if it did not meet its Employment Commitment thereunder (the "Agreement "), and WHEREAS, Company has requested City to grant an extension with respect to Company's Monthly Payments and Repayment Obligation under the Agreement, and WHEREAS, City is willing to grant such extension subject to and upon the terms and conditions herein set forth, NOW, THEREFOR, in consideration of the foregoing and mutual covenants contained herein, City and Company agree as follows: 1. The capitalized terms used herein shall have the same meaning as those terms are defined in the Agreement unless modified herein or the context otherwise requires. 2. Notwithstanding anything to the contrary in the Agreement, the Agreement is hereby modified and amended as follows: (a) Company's Monthly Payments accruing during the period from March 1, 1999 to September 30, 2000 shall be suspended, and the Repayment Period shall be extended to March 1, 2005. (b) During the balance of the Repayment Period as extended by (a) above, i.e., starting October 1, 2000 and ending March 1, 2005, Company shall pay to City an amount each Month equal to the Monthly Employees less than seventy (70) employed at the Property by Company multiplied by $50.00 (the "Company's Monthly Payment "). (c) Company further stipulates and agrees that if Company defaults in its Repayment Obligation or fails to pay any of Company's Monthly Payments after October 1, 2000, and such default is not corrected within thirty (30) days after written notice specifying the default is given by City to Company, City may declare the entire balance of the Repayment Obligation due and owing together with interest thereon at the rate of ten percent (10 %) per year (the "Acceleration "). For such purpose, the "entire balance of Company's Repayment Obligation" shall be an amount equal to 70 times $50.00 multiplied by the remaining Months of the Repayment Period plus the amount of any unpaid Company's Monthly Payments. Company's Repayment Obligation is absolute and unconditional and shall not be abated, reduced, diminished, modified, withheld or otherwise offset for any cause or reason whatsoever. The rights and remedies of the City under this Extension Agreement and Agreement shall be cumulative. 3. Company waives any and all applicable period of limitations, statutory or otherwise, and laches, and agrees not to assert any defense based thereon in any action or proceeding the City may take or institute to enforce this Extension Agreement, the Agreement, or to collect the Company's Repayment Obligation or Company's Monthly Payments, provided any such action or proceeding shall be instituted on or before December 31, 2008. 4. This Extension Agreement shall be construed in accordance with and governed by the laws of the State of Colorado. 5. Any notices hereunder shall be sufficiently given if given personally or mailed by first class mail, postage prepaid, addressed: (a) if to City, City Manager, City of Pueblo, 1 City Hall Place, Pueblo, Colorado, 81003, with copy to Thomas E. Jagger, City Attorney, 127 Thatcher Building, Pueblo, Colorado, 81003, or (b) if to the Company, 1815 West 14th Street, Pueblo, Colorado, 81003; or to such other address as either party shall specify in written notice given to the other party. 6. Time is of the essence hereof. This Extension Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and assigns, provided Company may not assign this Extension Agreement or any interest herein. Any assignment of this Extension Agreement by Company shall be null and void. 7. The persons signing this Extension Agreement on behalf of Company represent and warrant that such persons and Company have the requisite power and authority to enter into, execute, and deliver this Extension Agreement and that this Extension Agreement and Agreement are valid and legally binding obligations of Company enforceable against the Company in accordance with their terms. 8. The Agreement as modified by this Extension Agreement shall remain in full force and effect provided that in the event of any conflict between the provisions of this Extension Agreement and the Agreement, the provisions of this Extension Agreement shall control to the extent of such conflict. Executed at Pueblo, Colorado, the day and year first above written. -2- [SEAL] Attest: By City C16k [SEAL] Attest: A ' � Secretary PU I, AM C AL CORPORATION // ' /* r sident of the City Council FOUNTAIN FOUNDRY, INC. a Colorado Corporation By Q�� , Pr i ent -3-