HomeMy WebLinkAbout8853RESOLUTION NO. 8853
A RESOLUTION AUTHORIZING REIMBURSEMENT
TO PUEBLO DEVELOPMENT FOUNDATION FOR
OUTSTANDING EXPENSES RELATING TO THE LAN
TECHNOLOGIES, INC. JOB CREATING CAPITAL
IMPROVEMENTS PROJECT AND TRANSFERRING
FUNDS THEREFOR
WHEREAS, pursuant to various agreements with the City, Pueblo Development Foundation
( "PDF ") constructed a building and related improvements at the Pueblo Memorial Airport Industrial
Park (the "Land Technologies Building ") for lease to Lan Technologies, Inc., and
WHEREAS, PDF has recently completed an audit of PDF's cash receipts and cash payments
related to the Lan Technologies Building for the period beginning March 1, 1995 and ending April
30, 1999 (the "Schedule "), and
WHEREAS, a copy of the Schedule together with attached Statements are on file in the
City's Department of Finance and a copy thereof without such Statements is attached hereto, and
WHEREAS, pursuant to PDF's understanding of its agreements with the City, the City
should reimburse PDF the amount of cash it expended in excess of the cash it received with respect
to the Lan Technologies Building, and
WHEREAS, the Lan Technologies Building was damaged by a partially insured casualty
which damage was repaired by PDF, and
WHEREAS, the Lan Technologies Building and equipment was sold for $1,500,000 as part
of the Hartung Agalite Glass Co., Inc. job creating capital improvements project, and
WHEREAS, the Schedule shows that PDF has expended $299,657.50 more than it was
reimbursed by either Lan Technologies, Inc., the insurance company or the City, and
WHEREAS, all the funds expended by PDF were pursuant to agreements with the City and
in furtherance of job related capital improvements projects approved by the City Council of City, and
WHEREAS, the reimbursement of PDF from the 1992 -2001 Sales and Use Tax Capital
Improvements Project Fund would be consistent with the criteria and standard established by
Ordinance No. 6381. NOW, THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1
There is hereby transferred out of the 1992 -2001 Sales and Use Tax Capital Improvements
Project Fund, Projects To Be Determined Accounts, the sum of $299,657.50 for the purpose of
reimbursing Pueblo Development Foundation for outstanding expenses related to the Lan
Technologies, Inc. job creating capital improvements project as shown on the attached Schedule.
The Director of Finance is authorized and directed to pay to Pueblo Development Foundation the
sum of $299,657.50 in full and complete satisfaction of all claims and amounts owed or owing to
Pueblo Development Foundation by the City arising out of or in any manner related to the Lan
Technologies, Inc. job creating capital improvement project and the Lan Technologies Building
known as 145 William White Boulevard, Pueblo, Colorado.
ATTEST:
City C16
INTRODUCED: November 22 .1999
By John Verna
Councilperson
APP ED:
President of the City Council
W
NOVEMBER 22, 1999 AGENDA - CITY COUNCIL
BACKGROUND MEMORANDUM - RESOLUTION
AUTHORIZING REIMBURSEMENT TO
PUEBLO DEVELOPMENT FOUNDATION FOR
OUTSTANDING EXPENSES RELATED TO THE
LAN TECHNOLOGIES, INC. JOB CREATING
CAPITAL IMPROVEMENTS PROJECT
The attached Resolution authorizes the City to reimburse Pueblo Development
Foundation ( "PDF ") for expenses incurred by PDF with respect to the construction and lease of a
building for the Lan Technologies, Inc. job creating capital improvements project (the "Project ").
PDF recently completed an audit of its cash receipts and case payments for the Project which
shows PDF spent $299,657.50 more than it received. PDF is requesting reimbursement by the
City for the $299,657.50. A schedule of the cash receipts and cash payments is attached to the
Resolution.
Pueblo Development Foundation
Schedule of Cash Receipts and Cash Payments Related
To Lan Technologies Building (145 William White Blvd.)
For the Period Beginning March 1, 1995 and Ending April 30, 1999
Year ending 4130/1995
Inception of Lease 3/1/1995
Amount Borrowed from Norwest Bank
Payment to City of Pueblo
Note payments to Norwest Bank through 4/30/95
Lease payments received from Lan Tech
Cash Cash Supporting
Received Paid Documents
1,113,700.00 Statement 1
1,113,700.00 Statement 2
36,180.00 Statements 3&4
24,120.00 Statements 4 &5
Year ending 4/30/1996
Note payments to Norwest Bank through 4/30/96
Lease payments received from Lan Tech
Year ending 4130/1997
Note payments to Norwest Bank through 4/30/97
Lease payments received from Lan Tech
Year ending 4/30/1998
Note payments to Norwest Bank through 4/30/98
Expenses incurred and paid through 4/30/98
Property taxes paid for 1997
Insurance proceeds received
Earnest Money received from Hartung Glass
Year ending 4/30/1999
Note payments to Norwest Bank through 9/30/98 (pay -off)
Expenses incurred and paid through 4/30/99
From City of Pueblo for damage - (insurance proceeds)
From Lan Tech - Final Bankruptcy settlement
Insurance proceeds from Crum & Forster
Refund of 1997 property taxes
Paid to Conner Construction
Amount paid to Norwest Bank upon Sale of Building
Amount deemed to be received from City upon Sale of bldg.
156,780.00 Statements 6 thru 18
96,480.00 Statements 19 thru 26
144,720.00 Statements 27 thru 38
129,455.30 Statements 39 thru 48
132,660'.00 Statements 49 thru 59
55,522.72 Statement 60
26,600.27 Statement 61
89,285.37 Statement 62
6,250.00 Statement 63
Total 2,565,059.21 2,864,716.71
AMOUNT OF PDF FUNDS NOT RECOVERED (299,657.50)
Note: City of Pueblo received $627,467.69 upon sale of building to Nick Sciola Statement 75
60,300.00
Statement 64 thru 68
5,233.78
Statement 69
128,673.01
Statement 70
14,142.02
Statement 71
64,095.93
Statement 72
26,600.27
Statement 73
260,762.63
Statement 74
872,257.31
Statement 75
872,257.31
Statement 75
Total 2,565,059.21 2,864,716.71
AMOUNT OF PDF FUNDS NOT RECOVERED (299,657.50)
Note: City of Pueblo received $627,467.69 upon sale of building to Nick Sciola Statement 75