HomeMy WebLinkAbout10368RESOLUTION NO. 10368
A RESOLUTION APPROVING AN AGREEMENT BETWEEN PUEBLO, A MUNICIPAL
CORPORATION AND PUEBLO DEVELOPMENT FOUNDATION, A COLORADO NONPROFIT
CORPORATION RELATING TO THE TRANSFER OF LAND AT PUEBLO MEMORIAL AIRPORT
AND THE CONSTRUCTION OF SHELL BUILDINGS THEREON, AUTHORIZING THE
PRESIDENT OF THE CITY COUNCIL TO EXECUTE THE AGREEMENT AND THE SPECIAL
WARRANTY DEED THEREIN DESCRIBED, AND AUTHORIZING THE TRANSFER OF
$2,100,000 FROM THE 1992 -2006 SALES AND USE TAX CAPITAL IMPROVEMENT
PROJECTS FUND FOR THE PURPOSE OF CONSTRUCTING THE SHELL BUILDINGS
WHEREAS, Pueblo Economic Development Corporation ( "PEDCO ") has requested and
recommended that two shell buildings, one 50,000 square feet, the other 25,000 square feet, be
constructed at the Pueblo Memorial Airport Industrial Park for locating companies who will create
primary jobs, and
WHEREAS, in reliance upon PEDCO's representations City is willing to approve the
construction of such shell buildings. NOW THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO. that:
SECTION 1.
The Agreement between Pueblo, a Municipal Corporation and Pueblo Development
Foundation, a Colorado nonprofit corporation, dated April 11, 2005 and Special Warranty Deed
attached thereto, copies of which are attached hereto and incorporated herein, having been
approved as to form by the City Attorney, and the transfer of land described therein, are hereby
approved.
M:101IM0*A
The President of the City Council is authorized to execute and deliver in the name of the
City the Agreement and Special Warranty Deed and the City Clerk is directed to affix the seal of
the City thereto and attest same.
SECTION 3.
An amount not to exceed $2,100,000 is hereby authorized to be transferred from the
Projects To Be Determined Account of the 1992 -2006 Sales and Use Tax Capital Improvement
Projects Fund to the Pueblo Development Foundation Account for the specific purpose of
constructing the Shell Buildings described in the Agreement. The funding hereby authorized to be
transferred and expended shall be released and paid by the Director of Finance to or for the benefit
of Pueblo Development Foundation after receipt by the Director of Finance of written requests for
payment required by paragraph 2 of the Agreement.
SECTION 4
The City Council does hereby find and determine that the Agreement dated April 11, 2005
and the expenditure of funds described therein meets and complies with the criteria and standards
established by Ordinance No. 6381 and will create employment opportunities justifying the
expenditure of public funds. The City Council does further find and determine that Lots 2 and 5,
Pueblo Memorial Airport Industrial Park Subdivision, Third Filing, are surplus to City's needs.
INTRODUCED April 11, 2005
BY Jeff Chostner
Councilperson
APPROVED:
PR E CITY C IL
ATTESTED BY:
CITY CLERK
! 0
•
Background Paper for Proposed
RESOLUTION
AGENDA ITEM # i3
DATE: April 11, 2005
DEPARTMENT: Law Department
TITLE
A RESOLUTION APPROVING AN AGREEMENT BETWEEN PUEBLO, A MUNICIPAL
CORPORATION AND PUEBLO DEVELOPMENT FOUNDATION, A COLORADO
NONPROFIT CORPORATION RELATING TO THE TRANSFER OF LAND AT PUEBLO
MEMORIAL AIRPORT AND THE CONSTRUCTION OF SHELL BUILDINGS THEREON,
AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL TO EXECUTE THE
AGREEMENT AND THE SPECIAL WARRANTY DEED THEREIN DESCRIBED, AND
AUTHORIZING THE TRANSFER OF $2,100,000 FROM THE 1992 -2006 SALES AND
USE TAX CAPITAL IMPROVEMENT PROJECTS FUND FOR THE PURPOSE OF
CONSTRUCTING THE SHELL BUILDINGS
ISSUE
Should City Council approve the use of one -half cent sales and use tax revenues for
construction of two shell buildings at the Pueblo Memorial Airport Industrial Park and
authorize Pueblo Development Foundation to construct the shell buildings?
RECOMMENDATION
None
BACKGROUND
PEDCO has requested and recommended thattwo shell buildings, one 50,000 square feet,
the other25,000 square feet, be constructed atthe Pueblo Memorial Airport Industrial Park
for locating companies who will create primary jobs. The City has previously constructed
shell buildings which have been remodeled and occupied by companies doing business
at the Pueblo Memorial Airport Industrial Park.
FINANCIAL IMPACT
The cost of constructing the shell buildings is estimated to be $2,100,000.
ED
EMD
C I T Y O F P U E B L O
503 N Main Street, Suite 127
Pueblo, Colorado 81003 OFFICE OF THE CITY ATTORNEY
MEMORANDUM
TO: Gina Dutcher, City Clerk
FROM: City Attorney
RE: Pueblo Development Foundation (PDF)
DATE: April 4, 2005
Telephone: (719)543 -4412
Fax No : (719) 545 -4301
We enclose for City Council's April 11, 2005 meeting Resolution approving an agreement with
PDF to advance $2,100,000 for the construction of two shell buildings and the Special Warranty
Deed transferring Lots 2 and 5, Pueblo Memorial Airport Industrial Park Subdivision, Third
Filing, to PDF.
The Agreement but not the Special Warranty Deed should be executed by the City and PDF at
this time. The Special Warranty Deed is not to be executed or recorded until the land and
buildings are leased or sold to a third party. We will hold the unsigned original Special Warranty
Deed in our file until such contingency is met.
If you have any questions, please call me.
Thomas E. Jagger y�
sm
enc.
AGREEMENT
THIS AGREEMENT entered into as of the 11th day of April, 2005 between Pueblo, a
Municipal Corporation (the "City ") and Pueblo Development Foundation, a Colorado nonprofit
corporation (the "Foundation "), WITNESSETH:
In consideration of the mutual promises herein contained, City and Foundation agree as
follows:
1. City will, subject to prior approval of the Federal Aviation Administration ( "FAA "),
transfer to Foundation Lots 2 and 5, Pueblo Memorial Airport Industrial Park Subdivision, Third
Filing, (the "land ") by deed in substantially the same form as the Special Warranty Deed attached
hereto. Foundation will construct a 50,000 square foot shell building on Lot 2, and an approximately
25,000 square foot shell building on Lot 5 (the "Buildings "). Foundation will make the Buildings
and land available by purchase or lease to companies who will locate and conduct manufacturing or
industrial businesses on the land and Buildings. No transfer or lease of the land or Buildings thereon
shall be made by Foundation without the prior consent of the City Council of the City given by
Resolution duly adopted. Any transfer or lease without such consent shall be void.
2. City will make available and advance to Foundation as needed, an amount not to
exceed $2,100,000 from the City's 1992 -2006 Sales and Use Tax Capital Improvement Project Fund
to be used solely for the construction of the Buildings. No funds shall be advanced to Foundation
except pursuant to approved and verified written requests for payment and appropriate lien waivers
under construction contracts which have been awarded to the lowest and best bidder after
competitive bidding on the basis of plans and specifications prepared by a Colorado licensed
architect. The Buildings will be constructed in compliance with all applicable codes, laws and
regulations after approval of the construction by FAA. PDF shall protect the land and Buildings
from all encumbrances and liens, including mechanics' liens, and shall cause all such liens or claims
of liens to be discharged and released. All City funds disbursed directly to Foundation shall be
deposited in a separate account and held in trust by Foundation for the sole and only purpose of
paying for the construction ofthe Buildings and actual expenses incurred by Foundation with respect
thereto.
3. Foundation will reimburse City out of the proceeds received by Foundation from the
sale or lease of the land and Buildings or insurance thereon all funds made available and advanced
to Foundation by City under this Agreement together with all amounts received by Foundation which
include or represent the value of the land and interest in the computation of rents or purchase price.
If the purchase price is to be paid in installments or if the land and Buildings are leased, Foundation
will execute and deliver to City its promissory note in the amount equal to the funds advanced plus
land values and interest in the same amount and at the same rate the purchaser or lessee will pay,
secured by a first deed of trust on the land and Buildings.
4. The attached Special Warranty Deed for the parcels of land will be executed and
delivered to Foundation contemporaneously with the execution and delivery of a lease or deed by
Foundation to an approved lessee or purchaser thereof and, if appropriate, Foundation's promissory
note and deed of trust. Notwithstanding any provision of this Agreement to the contrary, title to the
Building and land shall remain in the City until the Special Warranty Deed is executed and delivered
to Foundation.
5. Foundation acknowledges that it has read and understands the covenants, conditions
and restrictions contained in the attached Special Warranty Deed and agrees that Foundation will be
bound thereby the same as if such covenants, conditions and restrictions were set forth in this
Agreement in full. Foundation will not construct the Buildings within the set -backs established in
the Special Warranty Deed nor at a height greater than that set forth in the Special Warranty Deed.
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 this Agreement.
8. This Agreement shall be binding upon 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 the day and year first above written.
[SEAL] PVnBLO AM I 7Z7 TION
ATTEST: By � ^���
l i �f�tJ�
City C k sident th City oun
[SEAL]
ATTEST:
ecretary
PUEBLO DEVELOPMENT FOUNDATION
By
Pieside t
G \C1T"DFSHELBLDG\2005\Aw.mt (4- 11 -05).wN -2-
SPECIAL WARRANTY DEED
THIS DEED, made this day of , 200 and between Pueblo,
a Municipal Corporation (herein "City ") and Pueblo Development Foundation, a Colorado nonprofit
corporation (herein "Company "), WITNESSETH:
That City for and in consideration of the sum of $10.00 and other good and valuable
consideration to City in hand paid by the Company, the receipt whereof is hereby confessed and
acknowledged, has granted, bargained, sold and conveyed, and by these presents does grant, bargain,
sell, convey and confirm unto the Company, its successors and assigns forever, all the real property
situate, lying and being at Pueblo Memorial Airport, County of Pueblo, State of Colorado, more
particularly described as Lots 2 and 5, Pueblo Memorial Airport Industrial Park Subdivision, Third
Filing (herein "Property), with all its appurtenances, and warrant the title to the same against all and
every person claiming the whole or any part thereof, by, through or under the City, subject to
easements, rights of way, restrictions and reservations of record and easements for existing utilities,
sanitary sewer, water, irrigation and natural gas lines on, over or under the Property and to the
following covenants, conditions, and restrictions which are and shall be construed to be covenants
running with the land described herein and binding upon the Company, its successors and assigns
and inuring to the benefit of the City, its successors and assigns.
1. City reserves unto itself and its successors and assigns, for use and benefit of the
public, a right of flight for the passage of aircraft in the airspace above the surface of the Property,
together with the right to cause in the airspace above the surface of the Property such noise as be
inherent in the operation of any aircraft now known or hereafter used for navigation of or flight in
said airspace, and for use of the airspace above the surface of the Property for landing on, taking off
from, or operation on or over the Pueblo Memorial Airport.
2. Company expressly agrees for itself, its successors and assigns to restrict the height
of structures, objects of natural growth and other obstructions on the Property, to a height of not
more than 4,670 feet above the mean sea level. In the event this covenant is breached, City reserves
the right to enter upon the Property at the expense of the Company to remove the offending structure
or object and to cut the offending growth.
3. Company expressly agrees for itself, its successors and assigns, that it will prevent
any use of the Property which would interfere with landing or taking off of aircraft at the Pueblo
Memorial Airport, or otherwise constitute an airport hazard.
4. The Property and its use are further subject to the following Restrictive Covenants:
(a) The Property maybe used only for industrial and manufacturing facilities and
incidental office uses. The Property shall not be used for smelting or plating operations, or for the
storage or processing of putrescible materials, or for any purpose or business which constitutes a
nuisance, or which exceeds the state air pollution control standards for the facility. Gasoline or
diesel fuel used in connection with the business conducted on the Property but not for sale at retail
or wholesale may be stored on the Property in an environmentally sound manner.
(b) Outdoor storage shall not be permitted except for storage of equipment used
in the facility. Parking areas for vehicles and roads on the Property shall be paved.
(c) The Property shall not be subdivided and no building or structure over sixty
(60) feet in height shall be installed or constructed on the Property.
(d) No structure or building shall be constructed or installed nearer than twenty-
five (25) feet of the right of way line of Jetway Court, or twenty-five (25) feet of the right of way line
of any other abutting streets. There must be installed and maintained a minimum twenty-five (25)
foot strip of living landscaped ground along and adjacent to Jetway Court, and twenty-five (25) feet
adjacent to other abutting streets. Minimum side and rear yard set -backs shall be twenty-five (25)
feet. Vehicular access to and from the Property shall be from Jetway Court.
-2-
(e) Company shall keep and maintain the Property and all buildings, landscaping
and improvements located thereon in a good, clean, safe and orderly condition free of waste, rubbish,
debris and trash, and enclose and screen from public view all outside storage and unsightly areas of
the Property.
(f) Company shall comply with notifications and review requirements of the
Federal Aviation Administration prior to the construction, modification or alteration of any building
or structure on the Property.
(g) Company shall, at its own expense, cause all utilities and roads used or to be
used on the Property to be extended from adjacent streets, installed on the Property, and kept and
maintained in good order and condition.
(h) Company shall pay to City a combined service fee for services and facilities
now furnished by City at the Pueblo Memorial Airport, namely: public street maintenance, fire
protection, and street lighting established by Section 3 -1 -14 of the Pueblo Municipal Code payable
monthly. City may, from time to time, reduce or eliminate any or all of the services or facilities
presently being furnished and may modify, increase, or decrease the annual combined service fee
provided (i) such services and fee shall be non - discriminatory among other tenants and owners of
land at Pueblo Memorial Airport receiving such services and facilities, and (ii) such fee shall be
reasonable in relation to City's actual cost and expense of furnishing the services and facilities then
being furnished. City's cost may include the cost of capital improvements amortized over the useful
life of the improvements. If wastewater discharged from the Property is transported through City's
wastewater collection system and treated at City's waste water treatment facilities, Company and the
wastewater so transported and treated shall be subject to the same restrictions, limitations,
conditions, fees, and charges as other users of City's sanitary sewer system and facilities. Company
shall only discharge domestic wastewater into the City's sanitary sewer system.
(i) Company shall provide for storm water drainage which shall include the
construction and installation of storm water detention facilities on the Property. The detention
facility shall be capable of storing the developed on -site runoff from a 100 -year frequency storm.
The maximum release rate from the detention facility at the ponding depth corresponding to the 10-
year volume shall be .30 cfs /acre and 1.00 cfs /acre for the 100 -year ponding depth. All calculations
and details shall conform with the City of Pueblo Storm Drainage Criteria Manual. The point of
discharge from the detention facility shall be at a location approved by the Director of Public Works.
0) Before commencing the construction, installation or alteration of anybuilding,
structure, parking facility, outdoor sign, or other permanent improvement, or landscaping on the
Property, the Company shall submit to and have approved by the City in writing the site plans and
plans and specifications therefor. City's approval will not be unreasonably withheld. In the event
the City or its designated representatives shall fail to approve or disapprove such plans and
specifications within twenty -five (25) working days after they have been submitted to the City, such
-3-
approval will not be required and this covenant will be deemed to have been complied with.
Company shall use its best efforts to assure that all buildings constructed on the Property will be
architecturally and aesthetically compatible with buildings constructed at the Pueblo Memorial
Airport industrial park since 1985. All buildings, improvements and activities on the Property shall
be constructed and conducted in compliance with all applicable federal, state and local law,
regulations, and codes.
(k) City reserves the right to waive all or any part of these Restrictive Covenants.
5. At the request of City, Company shall meet and in good faith confer with City
concerning the annexation of the Property to the City when the Pueblo Memorial Airport, or anypart
thereof, including without limitation, the Property becomes eligible for annexation.
6. Invalidation of any one of the foregoing covenants, conditions, restrictions or
reservations by judgment or court order or otherwise shall not affect any of the other of said
covenants, reservations, restrictions or conditions which shall remain in full force and effect.
7. City shall have the right to enforce the restrictions, covenants and conditions hereof
by injunction or other lawful procedure and to recover damages, costs, expenses, including
reasonable attorney fees, resulting from any violation thereof or arising out of their enforcement.
[SEAL] PUEBLO DEVELOPMENT FOUNDATION
ATTEST:
By
President
Secretary
[SEAL] PUEBLO, A MUNICIPAL CORPORATION
ATTEST:
By
City Clerk President of the City Council
152
COUNTY OF PUEBLO )
) ss.
STATE OF COLORADO )
The foregoing instrument was acknowledged before me this day of
200_ by as President and
as Secretary of Pueblo Development Foundation, a Colorado nonprofit corporation.
Witness my hand and official seal.
My commission expires:
[SEAL]
Notary Public
COUNTY OF PUEBLO
STATE OF COLORADO
200
ss.
The foregoing instrument was acknowledged before me this day of_
by as President of the City Council, and
as City Clerk of Pueblo, Colorado, a Municipal Corporation.
Witness my hand and official seal.
My commission expires:
[SEAL]
Notary Public
G:\ Crl '"DFSHFJ.BLDG\2005'SpecielWD.%Vd —5—