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HomeMy WebLinkAbout09582RESOLUTION NO. 9582 A RESOLUTION APPROVING AN AGREEMENT BETWEEN THE CITY OF PUEBLO AND PUEBLO DEVELOPMENT FOUNDATION RELATING TO A JOB CREATING CAPITAL IMPROVEMENT PROJECT, AUTHORIZING THE PRESI- DENT OF THE CITY COUNCIL TO EXECUTE SAME, AND TRANSFERRING $158,000 FROM THE 1992 -2006 SALES AND USE TAX CAPITAL IMPROVEMENT PROJECTS FUND FOR PURCHASE OF LAND ASSOCIATED WITH SUCH PROJECT BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1 The City Council finds and determines that the expenditure of $158,000 for the purchase of land in conjunction with the job creating capital improvement project described in the attached Agreement meets and complies with the criteria and standards established by Ordinance No. 6381. SECTION 2 The Agreement dated April 22, 2002 between the City of Pueblo, a municipal corporation and Pueblo Development Foundation, a Colorado nonprofit corporation relating to a job creating capital improvement project, 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 Agreement in the name of the City and the City Clerk is directed to affix the seal of the City thereto and attest same. SECTION 3 Funds in an amount not to exceed $158,000.00 are hereby transferred from the 1992 -2006 Sales and Use Tax Capital Improvements Fund to Pueblo Development Foundation and authorized to be expended for the purchase of the land described in the attached Agreement and expenses associated with such purchase. SECTION 4 This Resolution shall become effective upon final passage. INTRODUCED: April 22, 2002 BY Al Gurule OUNCILPERSON APPROVED: `" &�� PRESIDENT OF THE CITY COUNCIL ATTESTED BY: 1u�.� CITY CLERK FACIMECONDBAHospital Cooperative Laundry\Resolution.wpd -2- o ID 0 CD ° City of Pueblo Background Paper for Proposed RESOLUTION 40, . - 1! 9s82 AGENDA ITEM # 2 DATE: April 22, 2002 / , 1 DEPARTMENT: Law Department TITLE A RESOLUTION APPROVING AN AGREEMENT BETWEEN THE CITY OF PUEBLO AND PUEBLO DEVELOPMENT FOUNDATION RELATING TO A JOB CREATING CAPITAL IMPROVEMENT PROJECT, AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL TO EXECUTE SAME, AND TRANSFERRING $158,000 FROM THE 1992 -2006 SALES AND USE TAX CAPITAL IMPROVEMENT PROJECTS FUND FOR PURCHASE OF LAND ASSOCIATED WITH SUCH PROJECT ISSUE Should the City approve the Agreement and advance $158,000 to purchase land for a job creating capital improvement project? RECOMMENDATION None. BACKGROUND Pueblo Economic Development Corporation ( "PEDCO ") has submitted to the City a proposed project whereby the City will through Pueblo Development Foundation purchase land, and advance $485,000 toward the construction of an approximately 30,000 square foot facility to be leased to the Company who has committed to PEDCO to employ 97 full time employees. Pueblo Development Foundation will construct the facility on the land to be leased to the Company with an option to purchase. The land consists of 4.938 acres more or less located in the City at the Minnequa Industrial Park. The first phase of this project is the acquisition of the land by Pueblo Development Foundation through the use of City's one -half cent sales tax funds. FINANCIAL IMPACT City will spend $158,000 to purchase land out of the one -half cent sales tax fund. AGREEMENT This Agreement entered into as of April 22, 2002 between Pueblo, a Municipal Corporation ( "City ") and Pueblo Development Foundation, a Colorado Nonprofit Corporation ( "Foundation "), WITNESSETH Whereas, a prospective job creating capital improvement project with a company ( "Company ") will require the acquisition of land and construction of an approximately 30,000 square foot facility and related improvements (the "Facility "), and Whereas, Foundation will purchase title to the land and construct the Facility for lease to Company, and Whereas, City will advance $158,000 to Foundation for the purpose of purchasing the land. Now therefore, in consideration of the foregoing and mutual covenants contained herein, City and Foundation agree as follows: 1. City will advance to Foundation an amount not to exceed $158,000 for the purpose of purchasing the herein described land and expenses associated therewith: Lots 19 and 20, Minnequa Industrial Park, First Filing, Pueblo County, Colorado (the "Land ") 2. Foundation will purchase the Land and construct an approximately 30,000 square foot Facility thereon for lease to Company with an option to purchase. 3. Foundation shall not use, encumber, lease, sell, assign or otherwise transfer the Land except for the purpose of leasing the Land to Company with an option to purchase, provided, any such lease shall be approved as to form and content by the City Attorney before execution by Foundation (the "Approved Lease "). 4. Foundation shall perform all covenants and conditions on the part of the Lessor to be performed under the Approved Lease and shall enforce all covenants and conditions on the part of the Lessee to be performed under the Approved Lease. Foundation shall given written notice to City of any of Lessor's defaults under the Approved Lease. 5. If Foundation defaults in the performance of any covenants or provisions of the Agreement, Foundation shall within ten (10) days after written demand by City, reconvey title to the Land to City free of liens and encumbrances except the Approved Lease and the liens or encumbrances representing Foundation's loans or financing to construct the Facility. 6. If any provision of this Agreement is declared by a court of competent jurisdiction to be invalid or unenforceable, such determination shall not affect the other provisions of this Agreement which shall remain in full force and effect. 7. The provisions of this Agreement are and will be for the benefit of City and Foundation only and not for the benefit of any third party, and accordingly, no third party shall have any right or remedy hereunder or the right to enforce any provision of the Agreement. 8. This Agreement shall be binding up and inure to the benefit of the City and Foundation and their respective successors and assigns, provided Foundation may not assign this Agreement or any of its rights hereunder without the prior written consent of City. Executed at Pueblo, Colorado, the day and year first above written. Pueblo, a icipal Corporation Pueblo Development Foundation J President of the City Council P esident Attest: City C k Attest _ Secretary F: \CITY\ECONDEV\Hospital Cooperative Laundry\AGREMENT.wpd —2—