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
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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
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