HomeMy WebLinkAbout09085RESOLUTION NO. 9085
A RESOLUTION APPROVING AN AGREEMENT BETWEEN
PACE CONSTRUCTION, INC., RUDOLPH N. MARTINEZ,
LEONARD A. PACE, JR., AND THE CITY OF PUEBLO, A
MUNICIPAL CORPORATION, FOR AFFORDABLE HOUSING
DEVELOPMENT, AND AUTHORIZING THE PRESIDENT OF THE
COUNCIL TO EXECUTE SAME
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, COLORADO, that:
SECTION 1.
The Agreement dated August 14, 2000 between Pace Construction, Inc., Rudolph
N. Martinez, Leonard A. Pace, Jr., and the City of Pueblo, A Municipal Corporation, ( "the
Agreement "), for the development of affordable housing, a copy of which is attached and
incorporated herein, having been approved as to form by the City Attorney, is hereby
approved.
SECTION 2.
The President of the City Council is hereby authorized to approve the adoption of
the resolution, and the City Clerk to attest the same, by and on behalf of the City of Pueblo.
INTRODUCED: August 14, 2000
ATTEST:
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BY: Al Gurul e
Counci person
APPROVED:
Pr sident of the City Council
Rev. 7/17/00
LOW AND MODERATE INCOME SUBDIVISION
REDEVELOPMENT ASSISTANCE AGREEMENT
THIS AGREEMENT, made and entered into this 14th day of August, 2000, by and between the City of Pueblo, a
Municipal Corporation ( "City") and Leonard A. Pace, Jr., Rudolph N. Martinez, and Pace Construction, Inc. (hereinafter
collectively referred to as "Developer ") whose address is 184 Kingsley Avenue, Pueblo, Colorado. 81005 (the "Agreement ").
WHEREAS, there exists within the City of Pueblo an insufficient supply of safe, decent and sanitary housing which
is affordable to low and moderate income families; and
WHEREAS, there exists a shortage of affordable building sites within the City for the construction of new safe, decent
and sanitary housing which is affordable to low and moderate income families; and
WHEREAS, the provision of sufficient decent, safe and sanitary housing for low and moderate income persons serves
municipal and public purposes; and
WHEREAS, construction of new low and moderate income housing developments in urban redevelopment areas will
assist in providing affordable housing, will reduce the spread of urban blight and will serve to revitalize urban
neighborhoods; and
WHEREAS, lands suitable for urban redevelopment are largely held in private ownership and are not being
redeveloped for low and moderate income housing in substantial part because the development community perceives that
investment in infrastructure and other costs associated with redevelopment present an unacceptable level of risk and
inadequate return compared to other available investments; and
WHEREAS, economic incentives are required to encourage investment in urban redevelopment areas and promote
development of building sites for new affordable housing; and
WHEREAS, provision of reasonable public economic incentives to defray a portion of the cost of infrastructure
development in urban redevelopment areas serves primarily public purposes by enhancing the supply of affordable housing
for low and moderate income families, by returning unproductive property to residential use which expands the municipal
tax base, and by preserving and enhancing existing urban neighborhoods; and
WHEREAS, Developer is willing and able to undertake an urban redevelopment project for construction of new
single family homes for low and moderate income families.
NOW, THEREFORE, in consideration of the foregoing recitals and the benefits received by Developer as indicated
below, City and Developer agree as follows:
1. Developer represents and warrants that:
(a) Developer owns the real property located within the City of Pueblo, Pueblo County, Colorado, described
more particularly as:
Lots 2 through 31, inclusive, Block 6, Hyde Park Subdivision; and Lots 1 through 16, inclusive, Block
5, Hyde Park Subdivision; and Lots 1 through 7, inclusive, Block 4, Hyde Park Subdivision
hereinafter referred to as "the Property."
(b) Developer is licensed and qualified as a homebuilder by Pueblo Regional Building Department.
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2. Except as otherwise provided in paragraph 3 of this Agreement, Developer shall, at Developer's own cost and
expense, do all things necessary and appropriate, including comply with all building, zoning and subdivision laws and
regulations, construct all infrastructure and site improvements, and pay all utility and connection fees, in order to develop
the Property into not less than 24 nor more than 29 separate approved building sites (hereinafter referred to as an "APS ")
each of which shall be not less than 5000 square feet and fully suitable as a site for construction of a new site -built single
family residence for a low or moderate income family. Within three (3) years of the date of this Agreement, Developer shall
construct upon each APS a single family dwelling of not less than 1,000 square feet of habitable space meeting the
requirements of paragraph 6 of this Agreement which shall be sold to a low or moderate income buyer. The development
of the building sites and construction of dwellings upon each site shall collectively be referred to as the "Project."
3. (a) Subject to availability of federal HOME and CDBG funds and further subject to authorization for and
execution of a contract between the City and Neighborhood Housing Services of Pueblo, Inc. ( "NHS ") under which NHS
shall construct the improvements as hereinafter described, the City agrees to cause to be undertaken the construction of
certain public improvements to a portion of 18th Street, between Oak Avenue and a location west of Wildhorse Creek to
be determined by City, as presently located within the City of Pueblo, Colorado, as generally indicated in the plans and
specifications prepared, or to be prepared, by Northstar Engineering, a copy of which has heretofore been made available
or will be made available for inspection by Developer at the Department of Public Works (hereinafter referred to as the
"Public Improvements "). Developer understands and agrees that the City may from time to time, or at any time, and at its
sole and absolute discretion revise or modify the plans or specifications for the Public Improvements, and may change or
amend the contract with NHS for same. The City may also delay or phase the construction of any or all of the work to be
performed as part of the Public Improvements, or may suspend or cancel such work at any time the City deems to be in the
City's interest.
(b) The estimated total cost of the Public Improvements is $560,000.00. Developer acknowledges that
the nature of the Public Improvements includes construction of a sewer main and other improvements which developers and
builders are normally obligated to construct at such developers' and builders' expense. Developer further acknowledges
and agrees that the Public Improvements will specifically benefit and enhance the value of adjacent property including the
Property. The parties stipulate and agree that the proportionate benefit of the Public Improvements to the Property are in
the amount of $200,000.00, which amount of benefit is hereby fixed and shall not be modified, regardless of whether the
actual cost of the Public Improvements is greater or less than the estimated cost.
(c) The benefit to the Property of the Public Improvements, in the amount set forth above, shall constitute
an obligation and indebtedness of Developer to the City (hereinafter referred to as the "Loan ") which shall be fully repaid
by Developer except and to the extent the amount of Loan repayment is reduced in accordance with the provisions of
paragraph 5 of this Agreement. Prior to City or NHS undertaking construction of the Public Improvements, Developer shall
execute all documents required by City with respect to the Loan, including but not limited to, a promissory note ( "Note ") and
Deed of Trust. The Note and said other instruments to be executed by Developer are referred to in this Agreement
collectively as the "Loan Documents." All parties participating as the Developer shall execute the Loan Documents and shall
be jointly and severally liable on the obligations set forth in the Loan Documents. The terms of the Loan shall provide that
if not sooner paid in full, the entire Loan, together with accrued interest, shall become due and payable in full on a day exactly
36 months after the date of execution of the Loan Documents by Developer.
(d) Developer shall execute the Deed of Trust, in such form as may be required by the City Attorney of City,
which shall be a lien upon all of the Property, and shall be the senior lien upon all of the lots and APS sites which together
constitute the Property, which lien shall be superior to all other liens except general taxes. A condition precedent to City
undertaking the Public Improvements shall be Developer and Developer's other lenders executing all documents necessary
to effect such senior lien status of the Deed of Trust. Neither City's Director of Housing and Community Development, nor
the City Manager of City, shall have any authority whatsoever to waive, forego or otherwise modify the senior lien status
requirement on the lots and APS sites constituting the Property as stated herein.
(e) During the full Term of this Agreement and for any applicable required period of affordability, (i) any
failure by Developer to perform any obligation, covenant or provision of the Note or this Agreement required to be
performed by Developer, or (ii) any breach of any warranty made by Developer in this Agreement, or (iii) any other violation
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of any material tern 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 Developer, the entire indebtedness, together with accrued interest, shall at
the election of the holder, at once become immediately due and payable without notice. 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. Developer 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 Developer under this Agreement,
the Note and said Deed of Trust.
4. (a) Developer warrants and represents that (i) it [he] has the requisite authority and capacity to perform
all terms and conditions on Developer's part to be performed hereunder; (ii) that it [he] is a [ type of entity [ sole proprietor
[ duly organized corporation under state law and is in good standing with the Secretary of State of Colorado (iii) that
it is aware of and understands its duty to perform all functions and services in accordance with the regulatory requirements
of 24 CFR Part 92, 24 CFR Part 570, and those identified in Exhibit "B" hereto; and (iv) that it is accepting federal financial
assistance for a Project hereunder subject to certain mandatory repayment provisions which shall survive closing of the Loan
and which exist in addition to all repayment obligations set forth in the Loan Documents.
(b) Time is of the essence hereof. Developer agrees that it shall meet the following deadlines with respect
to the Project: Developer shall commence construction of dwellings upon the Property not later than ninety days after
substantial completion of the Public Improvements and shall complete construction of not less than five (5) Program Units
not later than December 1, 2001, complete construction of not less than 15 Program Units not later than December 1, 2002,
and complete construction of all of the Program Units by not later than December 31, 2003.
(c) (reserved - D/B deleted)
5. The indebtedness of Developer under the Note shall be reduced by an amount equal to $8,333.00 for each
qualifying sale of a Program Unit, as hereinafter defined, to a qualifying low or moderate income buyer, provided that
Developer strictly complies with all of the requirements set forth in this Agreement. Provided that the Developer is in full
compliance with the terms of this Agreement and is not in default of any provision of this Agreement, the Note or the Deed
of Trust, the reduction shall be credited against the indebtedness at the time of closing of the sale of the Program Unit to the
qualified low or moderate income buyer accompanied by transfer of ownership of the Program Unit to the buyer by warranty
deed.
6. (a) With respect to each APS for which Developer intends to apply for reduction of the indebtedness,
Developer shall file proposed construction plans and specifications with the Director of City's Department of Housing and
Community Development ( "Director ") for a single family dwelling of not less than 1,000 square feet of finished and habitable
space to be constructed upon an APS located on the Property. If, in the sole opinion of Director, such plans and
specifications comply with Program requirements and constitute plans and specifications for decent, safe, sanitary and
affordable housing that complies with applicable building codes for a low or moderate income family, Director may approve
such plans and specifications. In the event the plans and specifications are not approved by Director for any reason, Director
shall inform Developer in writing of the nature of modifications required for approval, and Developer shall revise said plans
and specifications accordingly and resubmit same to Director. In order to qualify for reduction in the indebtedness,
Developer shall not commence any construction upon the Property until the proposed plans and specifications therefor have
been approved by Director. In the event plans and specifications are not approved with respect to any APS within 30 months
of the date of this instrument, this Agreement shall expire and Developer shall not thereafter be eligible for any further
reduction in the indebtedness pursuant to this paragraph 5, and the full remaining balance of the indebtedness shall become
immediately due and payable.
(b) Developer shall, at his own expense, furnish and provide all necessary labor, materials, permits, utility
service, plant investment fee payments, tools and equipment, and supervision to construct a single family residence upon
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each APS located on the Property in accordance with the approved plans and specifications therefor, and in compliance with
all applicable laws, codes and regulations (said APS, single family home and other improvements thereon being hereinafter
collectively referred to as a "Program Unit"). Developer shall commence said construction within 60 days after approval
of the plans and specifications by the Director, shall diligently prosecute same in an expeditious manner through qualified
workmen and contractors, and shall fully complete all said construction and provide same ready for occupancy in broom
clean condition within 210 days of the date of said approval by Director. The aforesaid time allowed for final completion
shall not be extended for any reason, including but not limited to inclement weather, strikes, material shortages, Acts of God
or inability of Developer to procure sufficient working capital, workmen or materials. Any failure by Developer to timely
commence, prosecute or complete said construction shall be deemed a default hereunder.
7. Upon final completion of all of the improvements upon each APS located on the Property, Developer shall
resell each such Program Unit to a qualified low or moderate income person or persons in accordance with the requirements
of this paragraph.
(a) In the event a qualified low or moderate income buyer has been pre- approved by City for purchase of
an identified Program Unit from Developer prior to date of this Agreement, the name(s) of such pre- approved buyer shall
be stated below and Developer shall sell and convey the identified Program Unit to said pre- approved buyer for a price not
to exceed the maximum sale price established in subparagraph (c) of this paragraph 7. In the event a buyer for the identified
Program Unit has not been pre- approved, or in the event the pre- approved buyer is unable or unwilling to close the purchase
or otherwise fails to close the purchase within 45 days of final completion of the improvements, then in either event,
Developer agrees to sell and convey the identified Program Unit to other low or moderate income persons deemed qualified
by City to participate in the Program for a price not to exceed the maximum sale price established in subparagraph (c) of
this paragraph 7; provided, however, that if City fails to produce the names of any other person or persons deemed qualified
to participate in the Program within 10 days of written request from Developer, then in such event, Developer may resell
the identified Program Unit to any willing purchaser for any price which may be agreed upon between said purchaser and
the Developer.
(Complete this portion if applicable)
Program Unit Address Name(s) of Pre - Approved Buyer
1.
2.
3.
4.
5.
6.
(b) Conveyance of a Program Unit by Developer to the buyer shall be by general or special warranty deed
conveying fee simple title to the APS and Program Unit free and clear of all liens and encumbrances including mechanic's
liens not of record. To the extent the approved plans, specifications or local building or housing codes require any appliances
or other items of personal property to be installed in or upon the Program Unit prior to occupancy, Developer shall also
execute such other ancillary instruments as may be necessary to convey such property to the buyer.
(c) The maximum sale price which may be charged by Developer upon sale of a Program Unit to a pre -
qualified buyer or other qualified buyer, including all appliances and personal property required by the plans and
specifications and local building and housing codes, shall not exceed U.S. $71,500.00, payable in cash or certified funds
at closing; provided, however, that if the habitable living space is greater or less than 1,000 square feet, the maximum sale
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price shall be adjusted upward or downward based upon a factor of $71.50 per square foot of habitable living space; and
provided further that the maximum sale price for sales during calendar years 2001 and thereafter may, if approved in writing
by the Director, be adjusted by the percentage change in the Consumer Price Index ( "CPI ") for the preceding year. The CPI
shall be the Consumer Price Index for all urban consumers, all items, published by the Bureau of Labor Statistics of the
United States Department of Labor. Developer shall be responsible at closing for payment of all customary and usual fees
and charges payable by a seller. In the event Developer shall be required to pay any seller's points in connection with any
VA or FHA purchase money mortgage loan made to the buyer, the amount of the maximum sale price may be increased by
the dollar amount of such points actually paid by Developer.
(d) Any noncompliance by Developer with any of the requirements of this paragraph 7 shall constitute a
default under this agreement.
8. Developer warrants and certifies that he is not an employee, agent, consultant, officer or elected or appointed
official of the City and neither exercises nor has exercised any functions or responsibilities for the City in connection with
any program administered by the City's Department of Housing and Community Development. HOME Regulation 24 CFR,
Part 92.356 and CDBG Regulations at 24 CFR Part 570 are incorporated herein by reference, and set forth applicable laws
and regulations that apply to Conflict of Interest. Developer shall avoid all conflicts prohibited by applicable regulations,
including but not limited to those set forth in 24 CFR Parts 92 and 570 as presently promulgated and as same may be revised
from time to time in the future.
9. Developer shall maintain detailed records as to the Project work and activities undertaken pursuant to this
Agreement, services provided, and expenses incurred in connection with the Project and complete accounting records.
Accounting records shall be kept on a generally recognized accounting basis and as requested by the City's auditor.
Developer agrees to comply with all applicable uniform administrative requirements described or referenced in 24 CFR Parts
92 and 570. The compliance provisions attached as Exhibit "A" hereto are made a part of this Agreement, and Developer
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 Developer which relate to this Agreement for the purpose
of making an audit or examination. Upon completion of the work and until the Loan has been fully repaid and for a period
of five (5) years thereafter, City may require all of the Developer's financial records relating to this Agreement to be turned
over to the City for examination.
10. The City shall have the right to monitor and evaluate the progress and performance of Developer 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 Developer's performance using
on -site visits, progress reports required to be submitted by Developer, audit findings, disbursement transactions and contact
with Developer as necessary. Developer 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. Developer shall fully cooperate with City relating to
such monitoring and evaluation.
11. Developer 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 Developer for a period of not less than five 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.
12. This Agreement shall not be assigned or transferred by Developer without the prior written consent of the City.
Any assignment or attempted assignment made in violation of this provision shall, at the election of City, be deemed void
and of no effect whatsoever.
13. Nothing herein contained shall make or be construed to make Developer or any of Developer's agents or
employees, the agents or employees of the City. Developer shall be solely and entirely responsible for its acts and the acts
of its agents, employees and subcontractors.
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14. (a) As to the City, Developer 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, construction of the Project,
subdivision improvements, or dwellings by Developer or by the conditions created thereby or resulting therefrom. Developer
further agrees to indemnify and save harmless the City, its officers, agents, attorneys 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, construction of the Project,
subdivision improvements, or dwellings, or arising from the sale of the Program Units or warranties relating thereto or out
of any violation by Developer of any statute, ordinance, rule or regulation.
(b) Developer agrees that it shall procure and will maintain during the term of this Agreement and until
the Loan has been fully repaid, 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)
of this paragraph 14.
(c) The minimum insurance coverage which Developer shall obtain and keep in force is as follows:
(A) Workers' Compensation Insurance complying with statutory requirements in Colorado.
(B) Comprehensive General Liability ( "CGL ") Insurance written on ISO Form CG 00 01 0196, or
a substitute form providing equivalent coverage, with a limit not less than One Million Dollars ($1,000,000.00) per
occurrence, covering liability arising from premises, operations, independent contractors, personal injury, products
completed operations, and liability assumed under an insured contract, on an occurrence basis. The policy shall
identify the City as an additional insured.
(d) If requested by City, Developer further agrees that it shall procure and maintain, at the Developer's
expense, hazard and fire insurance upon any buildings or other improvements upon the property described in the 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 the outstanding balance of the
indebtedness under the Note. Developer shall furnish a certificate of insurance certifying such coverage to City upon request.
Both said certificate of insurance and the policy procured by the Developer shall identify the City as an additional loss payee.
15. Developer agrees to execute and abide by the certifications contained in Exhibit "B" hereto, which are hereby
expressly made a part of this Agreement.
16. In the event City incurs any cost or expense in enforcing the requirements of this Agreement applicable to
Developer or in bringing any action to recover the amount of any repayment obligation, or to foreclose or obtain sale under
the Deed of Trust or mortgage instrument, City shall be entitled to recover its costs and expenses, including reasonable
attorneys fees.
17. (a) In addition to all procurement requirements otherwise applicable to the Project pursuant to any other
provision of this Agreement or pursuant to any requirement of law or regulation incorporated in this Agreement by reference,
Developer shall comply with all requirements of this paragraph 17.
(b) No improvements shall be undertaken to the Property unless and until: (A) plans and specifications
therefor have been prepared or approved by either a registered Professional Engineer in good standing and duly licensed to
practice in the State of Colorado or an Architect authorized to practice within the State of Colorado; (B) such plans and
specifications have been filed with the City and approved by the City's Director of Housing; and (C) all construction contracts
for improvements located upon the Property shall have been awarded only after an open, competitive bidding process which
allows qualified subcontractors to reasonably participate in the competitive bidding procedures.
(c) (reserved - D/B deleted)
(d) Every contract for construction of improvements, and all lower tier covered transactions, shall include
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a requirement that the contractor, subcontractor or vendor certify that neither it nor its principal is debarred, suspended,
proposed for debarment, declared ineligible or voluntarily excluded from participation in any federally funded project.
18. In all printed materials, project descriptions and other activities undertaken with funds provided under this
Agreement, Developer shall provide recognition that financial assistance has 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. However, such recognition and signage
shall also prominently set forth the following statement: "By providing financial assistance for this Subdivision, the City of
Pueblo, and the U.S. Department of Housing and Urban Development neither recommend nor endorse the sale of properties
in the Subdivision nor make any representations or warranties in respect thereto."
19. 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 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 Developer and City.
20. The persons signing this Agreement on behalf of the parties represent and warrant that such persons have the
requisite power and authority to enter into, execute and deliver this Agreement. The persons signing on behalf of Developer
represent and warrant that this Agreement is a valid and legally binding obligation of Developer enforceable against
Developer in accordance with its terms.
21. Provided that Developer is not in default of any of the provisions of this Agreement or the Loan, the Note or
the Deed of Trust, upon the sale of any Program Unit secured by the City's Deed of Trust referred to above, Developer may
obtain a partial release of said Deed of Trust with respect to said Program Unit only upon either (a) payment of not less than
$8,333.00 of the then outstanding principal Loan balance, or (b) application of a reduction credit upon qualifying sale of the
Program Unit in accordance with paragraph 5 of this Agreement.
22. In addition to all other conditions precedent to City's performance hereunder, this Agreement is expressly made
contingent upon receipt by City of written notification from the U.S. Department of Housing and Urban Development
( "HUD ") that the review procedures required by Executive Order 12372 have been completed with respect to the planning
and construction of all water and sewer facilities contemplated by paragraph 3(a) of this Agreement and that funds may be
released for the Public Improvements. Developer acknowledges that any work or activity undertaken by Developer prior
to receipt of such notification from HUD is at the Developer's sole risk. In the event receipt of such notification is not
received within 60 days of the date of this Agreement, either party may elect to cancel this Agreement upon written notice
to the other party, in which case this Agreement shall become void and of no effect whatsoever.
23. The parties executing this Agreement as the Developer are jointly and severally liable for the performance of
all of the Developer's obligations under this Agreement.
IN WITNESS WHEREOF, Developer 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- _ P A -
City Cl
A
(SEAL]
CI4ic UEBLO,
A Corporati y B : i ll, l b `-�
President of City Council
DEVELOPER:
Leonard A. Pace, Jr.
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L vt—
Rudolph . Martinez
PACE CONSTRUCTION, INC.
Name: ter~ ��c'l5`�� �� 0 t'
Title:
F \ CITY\ HOUSING\DEVELOPR\PACEAGRMT4.WPD -g'
EXHIBIT A
ACCOUNTING SYSTEM COMPLIANCE PROVISIONS
As used in this Exhibit, the term "Developer" shall mean the entity entering into the Agreement with
the City of Pueblo, a Municipal Corporation to which this Exhibit is attached.
2. Notwithstanding that Developer is a for - profit entity, Developer is subject to and shall comply with
the requirements of OMB Circular A -133 to the same extent and effect as if Developer were a
Nonprofit Institution as defined in OMB Circular A -133.
Developer agrees to maintain Project and accounting records in accordance with generally accepted
accounting principles which accurately reflect all costs chargeable to the Project, utilize adequate
internal controls, and maintain source documentation for all costs incurred. The City shall have the
right to review and approve Developer's account system and internal controls prior to the release of
any funds under the Agreement.
4. During the preconstruction and construction phases of the Project, the Developer shall not materially
deviate from any approved plans, specifications or the approved budget for a dwelling or Program
Unit.
Nothing in the Agreement or the Exhibits thereto shall obligate City to any third parties nor to any
contractors, subcontractors, consultants, suppliers or workmen who have contracted with Developer
or provided any materials or services to Developer.
The City has the right to periodically perform interim audits and a final audit of the Project and funds
provided under the Agreement. Developer shall fully cooperate with City in undertaking any such
audit and shall provide a suitable work area for City's audit personnel to inspect and copy records.
EXHIBIT B
CERTIFICATIONS
Developer hereby certifies that the project will be conducted and administered in compliance with all of
the following requirements:
(1) Title VI of the Civil Rights Act of 1964 (Pub. L. 88 -352; 42 U.S.C. 2000d, et sea .) and
implementing regulations issued at 24 CFR Part 1;
(2) Title VIII of the Civil Rights Act of 1968 (Pub. L. 90 -284; 42 U.S.C. 3601, et sec.), as
amended; and that the grantee will administer all programs and activities related to housing and community
development in a manner to affirmatively further fair housing;
(3) Section 109 of the Housing and Community Development Act of 1974, as amended; and the
regulations issued pursuant thereto;
(4) Section 3 of the Housing and Urban Development Act of 1968, as amended;
(5) Executive Order 11246, as amended by Executive Orders 11375 and 12086, and implementing
regulations issued at 41 CFR Chapter 60;
(6) Executive Order 11063, as amended by Executive Orders 12259, and implementing regulations
at 24 CFR Part 107;
(7) Section 504 of the Rehabilitation Act of 1973 (Pub. L. 93 -112), as amended, and implementing
regulations when published for effect;
(8) The Age Discrimination Act of 1975 (Pub. L. 94 -135), as amended, and implementing
regulations when published for effect;
(9) The relocation requirements of Title II and the acquisition requirements of Title III of the
Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, and the HUD implementing
regulations set forth in 24 CFR Part 42;
(10) Executive Order 11988 relating to the evaluation of flood hazards and Executive Order 11288
relating to the prevention, control and abatement of water pollution;
(11) The flood insurance purchase requirements of Section 102(a) of the Flood Disaster Protection
Act of 1973 (Pub. L. 93 -234);
(12) The applicable regulations, policies, guidelines and requirements of OMB Circular Nos. A -102,
Revised, 24 CFR 85 and Subpart J of 24 CFR 570, A -87, A -110, A -122, A -128 and A -133 as they relate to the
acceptance and use of federal funds under this federally- assisted program;
(13) The Clean Air Act (42 U.S.C. 7401 et. seq.) as amended; particularly section 176 (c) and (d)
[42 U.S.C. 7506 (c) and (d)];
(14) HUD environmental criteria and standards [24 CFR Part 51, Environmental Criteria and
Standards];
aerx - -.1
(15) The Safe Drinking Water Act of 1974 (42 U.S.C. 201, 300 (f) et. seq., and 21 U.S.C. 349) as
amended; particularly section 1424 (e) (42 U.S.C. 300 (h)- 303(e));
(16) The Endangered Species Act of 1973 (16 U.S.C. 1531 et. seq.) as amended; including but not
limited to section 7 (16 U.S.C. 1536) thereof,
(17) The Wild and Scenic Rivers Act of 1968 (16 U.S.C. 1272 et. seq.) as amended; particularly
section 7 (b) and (c) [16 U.S.C. 1278 (b) and (c)];
(18) The Reservoir Salvage Act of 1960 916 U.S.C. 469 et. seq.); particularly section 3 (16 U.S.C.
469a -1); as amended by the Archeological and Historical Preservation Act of 1974;
(19) Flood Disaster Protection Act of 1973 (42 U.S.C. 4001 et. seq.) as amended; particularly
sections 102(a) and 202(a) [42 U.S.C. 4012a(a) and 4106(a)];
(20) Executive order 11990, Protection of Wetlands, May 24, 1977 (42 FR 26961 et. seq.);
particularly sections 2 and 5;
(21) It will comply with the Lead -Based Paint Poisoning Prevention requirements of 25 CFR Part
35 issued pursuant to the Lead -Based Paint Poisoning Prevention Act (42 U.S.C. 4821 et. seq.);
(22) The National Historic Preservation Act of 1966 (16 U.S.C. 470 et seq.) as amended; particularly
section 106 (16 U.S.C. 470f); and
(23) Executive Order 11593, Protection and Enhancement of the Cultural Environment, May 13,
1971 (36 FR 8921 et. seq.); particularly section 2(c).
(24) Construction work financed in whole or in part with federal funds is subject to the prevailing
wage requirements of the Davis Bacon Act (29 CFR, Parts 3 and 5), the Copeland Act (29 CFR Part 3), and the
Contract Work Hours and Safety Standards Act (Public Law 91 -54, 83 Stat. 96). When a project meets this
applicability requirement, the labor standards provisions of the HUD 4010 and the Davis Bacon Wage Decision
issued for the project will be incorporated into this contract document and shall be incorporated into all
construction contracts and subcontracts of any tier thereunder.
(25) No CDBG funds may be expended for lobbying purposes and payments from other sources for
lobbying must be disclosed 24 CFR Part 87.
(26) Where asbestos is present in property undergoing rehabilitation, Federal requirements apply
regarding worker exposure, abatement procedures and disposal. CPD -90 -44 EPA /OSHA.
(27) When HOME Investment Partnership Act funds are used, the Subrecipient will comply with
implementing regulations and requirements under 24 CFR 92.
Signature
I
COUNCIL
AGENDA
A RESOLUTION APPROVING AN
AGREEMENT BETWEEN PACE
CONSTRUCTION, INC., AND THE CITY OF
PUEBLO, A MUNICIPAL CORPORATION, FOR Agenda Item #
AFFORDABLE HOUSING DEVELOPMENT
SERVICES IN FURTHERANCE OF THE CITY'S
HOUSING STRATEGY, AND AUTHORIZING
THE PRESIDENT OF THE COUNCIL TO
EXECUTE SAME
Department: Housing & Community Development Date: August 14, 2000
SUMMARY
A. ISSUE:
A resolution approving the Agreement, hereto attached, between the City of
Pueblo, a Municipal Corporation and Pace Construction Inc., Rudolph N.
Martinez and Leonard A. Pace Jr. CDBG funds previously approved for this
project by Council are to be used for public improvements to a portion of 18
Street, between Hyde Park Elementary School and a location west of
Wildhorse Creek, in the Hyde Park neighborhood. Said public improvements
will enable the construction of new single - family detached homes benefiting
a low -to- moderate income neighborhood.
B. RECOMMENDATION:
Approve the resolution, thus approving a contract with Pace Construction
Inc., Rudolph N. Martinez and Leonard A. Pace, Jr. The project meets the
CDBG eligibility program requirements in that the public improvements
provide an area benefit to a low -to- moderate income neighborhood. The
proposed units which will be benefited will be affordable to families making
80% or less of the area median income.
II. BACKGROUND
The City of Pueblo's City Council has previously approved the City's Community
Development Block Grant Statement of Objectives and Activities for 2000. This
project is one of the projects included in that Statement. See attached agreement
and exhibits.
III. ALTERNATIVES
A. The City could elect to not partner with Pace Construction, Inc., and let
Pace Construction, Inc., proceed without City's assistance.
B. The City could approve this Resolution
PUEBIA