HomeMy WebLinkAbout10120RESOLUTION NO. 10120
A RESOLUTION APPROVING AN AGREEMENT BETWEEN THE CITY OF PUEBLO, A
MUNICIPAL CORPORATION, AND PUEBLO DEVELOPMENT FOUNDATION, A COLORADO
NONPROFIT CORPORATION RELATING TO THE PURCHASE OF LOT 67, PUEBLO
MEMORIAL AIRPORT INDUSTRIAL PARK, PUEBLO COUNTY, COLORADO, AUTHORIZING
THE PRESIDENT OF THE CITY COUNCIL TO EXECUTE SAME, AND TRANSFERRING
$555,000 FROM THE 1992 -2006 SALES AND USE TAX CAPITAL IMPROVEMENT PROJECTS
FUND FOR THE PURCHASE OF THE PROPERTY AND RELATED EXPENSES
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1
The City Council finds and determines that the expenditure of $555,000 for the purchase of
Lot 67, Pueblo Memorial Airport Industrial Park and improvements thereon (the "Property ") and
related expenses for subsequent lease to a company approved by City Council in conjunction with
a job creating capital improvement project meets and complies with the criteria and standards
established by Ordinance No. 638.
SECTION 2_
The Agreement between the City of Pueblo, a municipal corporation, and Pueblo
Development Foundation dated as of May 10, 2004 relating to the purchase of the Property, 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.
SECTION 3
Funds in an amount not to exceed $555,000.00 are hereby transferred from the 1992 -2006
Sales and Use Tax Capital Improvement Projects Fund and authorized to be expended for the
purchase of the Property described in the attached Agreement and expenses associated with such
purchase and subsequent lease thereof.
SECTION 4
This Resolution shall become effective upon final passage.
INTRODUCED May 10, 2004
BY Michael Occhiato
Councilperson
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Background Paper for Proposed
RESOLUTION
AGENDA ITEM # 7
DATE: May 10, 2004
DEPARTMENT: Law Department
TITLE
A RESOLUTION APPROVING AN AGREEMENT BETWEEN THE CITY OF
PUEBLO, A MUNICIPAL CORPORATION, AND PUEBLO DEVELOPMENT
FOUNDATION, A COLORADO NONPROFIT CORPORATION RELATING TO THE
PURCHASE OF LOT 67, PUEBLO MEMORIAL AIRPORT INDUSTRIAL PARK,
PUEBLO COUNTY, COLORADO, AUTHORIZING THE PRESIDENT OF THE CITY
COUNCIL TO EXECUTE SAME, AND TRANSFERRING $555,000 FROM THE
1992 -2006 SALES AND USE TAX CAPITAL IMPROVEMENT PROJECTS FUND
FOR THE PURCHASE OF THE PROPERTY AND RELATED EXPENSES
ISSUE
Should the City Council approve the agreement between the City and Pueblo
Development Foundation ( "PDF ") for the purchase of property at the Pueblo
Memorial Airport Industrial Park?
RECOMMENDATION
See Background
BACKGROUND
An Agreement between the City and PDF is presented to City Council for approval
relating to the acquisition of Lot 67, Pueblo Memorial Airport Industrial Park
Subdivision, consisting of a 17,000 square foot building and approximately 25.26
acres of land for a purchase price of $550,000 and $5,000 for related expenses.
The property is currently available for purchase and may be used by a company
approved by City Council to locate its business at Pueblo Memorial Airport Industrial
Park.
The financial details of the transaction were negotiated and approved by PEDCO.
PEDCO recommends that the City Council approve the purchase of the property by
PDF for subsequent lease to a Company to be approved by the City Council.
FINANCIAL IMPACT
City will transfer from the one -half cent sales tax fund $555,000 for the purchase of
the property by PDF and related expenses.
AGREEMENT
THIS AGREEMENT entered into as of May 10, 2004 between Pueblo, a Municipal
Corporation ( "City") and Pueblo Development Foundation, a Colorado Nonprofit Corporation
( "Foundation "), WITNESSETH
WHEREAS, the building consisting of approximately 17,000 square feet and approximately
25.26 acres of land legally described as Lot 67, Pueblo Memorial Airport Industrial Park, Pueblo
County, Colorado (the "Property") is available for purchase for subsequent lease in conjunction with
a job creating capital improvement project; and
WHEREAS, City is willing to advance funds to Foundation to purchase the Property upon
the terms and conditions herein set forth.
NOW, THEREFORE, in consideration of the foregoing and mutual covenants contained
herein, City and Foundation agree as follows:
1. Foundation will purchase the Property for a purchase price of $550,000. As soon as
possible after the purchase of the Property by Foundation, Foundation will enter into a lease with a
company approved by City Council ( "Approved Company") to locate its business at the Pueblo
Memorial Airport Industrial Park ( "Lease "). The Lease shall be approved as to form by the City
Attorney and shall be a "triple net" lease for a term of ten (10) years at a monthly rent of $4,959 a
month with rent credited for the purchase of the Property. All rent and other payments received by
Foundation under the Lease shall be held in trust by Foundation for the benefit of the City and,
immediately after receipt thereof, Foundation shall deliver and pay the rent to City less five (5)
percent thereof to be retained by Foundation as reimbursement to Foundation for its expenses
incurred in participating in this transaction and as Lessor under the Lease. Until commencement date
of the Lease, Foundation will insure at City's cost, the Property against loss or other casualty for its
full replacement value. The proceeds of such insurance shall be paid solely to the City.
2. Foundation shall not use, encumber, lease, sell, assign or otherwise transfer the
Property except for the purpose of leasing the Property or a portion thereof to an Approved
Company.
3. Foundation shall perform all covenants and conditions on the part of the Lessor to be
performed under the Lease, and shall enforce all covenants and conditions on the part of the Lessee
to be performed under the Lease. Foundation shall given written notice to City of any of Lessee's
defaults under the Lease. Foundation's obligation under this Agreement shall be secured by a first
deed of trust on the Property and Foundation shall execute and deliver to City its deed of trust in
form and content approved by the City Attorney.
4. If Foundation defaults in the performance of any covenant or provision of this
Agreement or Lease, Foundation shall within ten (10) days after written demand by City, convey title
to the Property to City free of liens and encumbrances except liens and encumbrances existing at the
time Foundation acquired title to the Property and Foundation's deed of trust securing the
performance of this Agreement, and assign the Lease to the City.
5. 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.
6. 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.
7. 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 Njinicipal Corporation
I:N
PresidenVf the City Council
Attest: Pte:_
City Cle
Approved as to orm:
Pueblo Development Foundation
B y / � 1 �( :wC
Pres'dent
Attest:
ecretary
City Attorney
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