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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