HomeMy WebLinkAbout08915RESOLUTION NO. 8915
A RESOLUTION APPROVING AN EXTENSION AGREEMENT
DATED AS OF JANUARY 24, 2000 BETWEEN THE CITY OF
PUEBLO AND HARTUNG AGALITE GLASS CO., INC. AND
AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL TO
EXECUTE SAME
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1
The Extension Agreement dated as of January 24, 2000 between the City and Hartung Agalite
Glass Co., Inc., 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 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.
City erk
INTRODUCED: February 14, 2000
By Al Gurgle
Councilperson
"resi dentof
Council
■
FEBRUARY 14, 2000 AGENDA -
CITY COUNCIL BACKGROUND MEMORANDUM -
RESOLUTION APPROVING AN EXTENSION AGREEMENT
BETWEEN THE CITY AND HARTUNG AGALITE GLASS CO., INC.
The attached Resolution approves an Extension Agreement dated as of January 24, 2000
between the City and Hartung Agalite Glass Co., Inc. (the "Company "). Company has not been able
to meet its 50 full -time employee commitment because of delays in receiving critical manufacturing
equipment from Italy. Company now employs approximately 44 full -time employees and has
requested that the commencement of its seven (7) year repayment period be extended from March
1, 1999 to September 1, 2000. The Extension Agreement approves such extension but does not
modify any other provisions of Company's September 30, 1998 Agreement with the City.
EXTENSION AGREEMENT
THIS EXTENSION AGREEMENT entered into as of January 24, 2000 between the City of
Pueblo, a municipal corporation (the "City ") and Hartung Agalite Glass Co., Inc., a Washington
corporation (the "Company "), WITNESSETH,
WHEREAS, Company and City entered into an agreement dated September 30, 1998
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
Quarterly 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) The term "Employment Commitment Date" as defined in paragraph 1 of the
Agreement is amended to read as follows:
"Employment Commitment Date" means September 1, 2000.
(b) Company further stipulates and agrees that if Company defaults in its
Repayment Obligation or fails to pay any of Company's Quarterly Payments after September 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 84 times $178.59 multiplied by the remaining Quarters of the Repayment
Period plus the amount of any unpaid Company's Quarterly 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.
4. 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 or the Agreement and /or to collect the
Company's Repayment Obligation and /or Quarterly Payments, provided any such action or
proceeding shall be instituted on or before December 31, 2008.
This Extension Agreement shall be construed in accordance with and governed by
the laws of the State of Colorado.
6. 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, 145 William White Boulevard, Pueblo, Colorado, 81001,
or to such other address as either party shall specify in written notice given to the other party.
7. 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.
8. 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.
9. 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.
[SEAL]
A M C P L CORPORATION
of the City Council
Attest:
City erk ,��p ► ► ►►�U/1
.M 1 E V
[SE AL]
Attest:
Title:
-2-
G AGALITE GLASS CO., INC.
Title: LJ l G 6 - / /L-E-dl