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HomeMy WebLinkAbout10487RESOLUTION NO. 10487 A RESOLUTION APPROVING AND AUTHORIZING THE TRANSFER OF UP TO $7.7 MILLION FROM THE 1992 -2006 SALES AND USE TAX CAPITAL IMPROVEMENT PROJECTS FUND FOR THE PROFESSIONAL BULL RIDERS, INC. PROJECT WHEREAS, Pueblo Economic Development Corporation ( "PEDCO ") has presented to City Council a proposed job creating capital improvement project whereby the Professional Bull Riders, Inc. will locate its national headquarters business and facility in the City of Pueblo in up to a 44,000 square foot building to be constructed on Lot 2, HARP ( "Project "); and WHEREAS, Professional Bull Riders, Inc. will pay up to $150 per square foot for the construction and tenant improvements for the first floor Riverwalk level of the building to be used for retail or restaurants, or both, with Professional Bull Riders, Inc. owning the first floor as a condominium; and WHEREAS, Professional Bull Riders, Inc. has committed to employ 76 full -time employees during a three year period starting October 1, 2007 and 180 full -time employees during a seven (7) year period starting October 1, 2010 and ending September 30, 2017; and WHEREAS, the Project and financial details thereof, were negotiated and approved by PEDCO, and WHEREAS, PEDCO has recommended that the City Council approve the Project and financial details relating thereto, and WHEREAS, based upon PEDCO's recommendation and representations made to the City by representatives of PEDCO with respect to the Project, City Council is willing to approve the Project. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1 The City Council finds and determines that the expenditure of up to $7.7 million for the job creating capital improvement project described herein meets and complies with the criteria and standards established by Ordinance No. 6381 and will create employment opportunities justifying the expenditure of public funds. SECTION 2 Funds in an amount not to exceed $7.7 million are hereby authorized to be transferred, expended and made available out of the 1992 -2006 Sales and Use Tax Capital Improvement Projects Fund for the construction of an up to 44,000 square foot building on Lot 2, HARP to be occupied and used by Professional Bull Riders, Inc. as its national headquarters and an adjacent 168 space parking facility. The funds hereby authorized to be transferred and expended shall be released and paid by the Director of Finance in accordance with the terms and conditions of definitive agreements to be hereafter approved and executed by the City, the Professional Bull Riders, Inc. and PEDCO Foundation. SECTION 3 The officers of the City are directed and authorized to perform any and all acts consistent with the intent of this Resolution to effectuate the transactions described herein. SECTION 4 This Resolution shall become effective upon final approval and passage. INTRODUCED: August 29, 2005 BY Dr. Bill Sova UNCILP RS APPROVE PR ID F T CITY NCIL ATTESTED BY: \ CITY CLERK -2- &0. /01187 � D o ° Background Paper for Proposed RESOLUTION AGENDA ITEM # I DATE: August 29, 2005 DEPARTMENT: Law Department TITLE A RESOLUTION APPROVING AND AUTHORIZING THE TRANSFER OF UP TO $7.7 MILLION FROM THE 1992 -2006 SALES AND USE TAX CAPITAL IMPROVEMENT PROJECTS FUND FOR THE PROFESSIONAL BULL RIDERS, INC. PROJECT ISSUE Should the City Council approve the job creating capital improvement project with respect to Professional Bull Riders, Inc.? Pueblo Economic Development Corporation recommends approval of the project. BACKGROUND Professional Bull Riders, Inc. ( "Company ") will locate its national headquarters business and facility in a 44,000 square foot building to be constructed on Lot 2 in HARP under a 10 -year lease with PEDCO Foundation starting October 1, 2007. Company has committed to employ 76 full -time employees at the national headquarters during a three (3) year period starting October 1, 2007 and 180 full -time employees during a seven (7) year period starting October 1, 2010. City will advance out of the one -half cent sales and use tax job creating capital improvement fund an amount not to exceed $7.7 million for the construction of up to 44,000 square foot building and adjacent 168 space parking structure. Company will pay up to $150 per square foot for construction and tenant improvements for the first floor and will acquire condominium ownership on the first floor. The first floor will be used for retail or restaurant purposes. The building and parking structure will be constructed by PEDCO Foundation pursuant to an agreement with the City. Parking for 180 automobiles will be made available to Company with at least 108 spaces in the parking structure. If Company performs its obligations under the lease and meets its employment commitment, the building will be conveyed to Company at the end of the 10 -year lease. The parking structure will remain under the control of the City. PEDCO Foundation will apply for new market tax credits and all funds resulting therefrom will be applied to the construction of the building and parking facility thereby reducing the $7.7 million in one -half cent sales and use tax funds. So long as Company complies with the terms and conditions of the lease and meets its employment commitment, Company will not be obligated to pay rent under the lease. If Company fails to meet its employment commitment, Company will pay rent on a pro -rata basis per month for each employee employed by Company in the building less than the employment commitment. The project with Company and financial details thereof were negotiated by and approved by PEDCO. FINANCIAL IMPACT See Background.