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HomeMy WebLinkAbout10513RESOLUTION NO. 10513 A RESOLUTION APPROVING A LETTER OF INTENT BY AND BETWEEN THE CITY OF PUEBLO, THE CHEYENNE AND ARAPAHO TRIBES OF OKLAHOMA AND THE NATIVE AMERICAN LAND GROUP — PUEBLO, L.L.C. RELATING TO THE HOMECOMING PROJECT AND AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL TO EXECUTE SAME BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. The Letter of Intent by and between the City of Pueblo, the Cheyenne and Arapaho Tribes of Oklahoma and the Native American Land Group — Pueblo, L.L.C. ( "Letter of Intent'), 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 hereby authorized to execute and deliver the Letter of Intent in the name of the City. SECTION 2. The Intergovernmental Agreement referred to in the Letter of Intent will be presented at a public hearing which will allow public comment prior to action thereon by the City Council. SECTION 3. This Resolution shall become effective upon final approval and passage. APPROVED: 1 ;4A Z . • frP s INTRODUCED September 12, 2005 BY Gilbert Ortiz Councilperson Ax; # 0S13 ED 0 Background Paper for Proposed RESOLUTION AGENDA ITEM # `� LI DATE: September 12, 2005 DEPARTMENT: Law Department TITLE A RESOLUTION APPROVING A LETTER OF INTENT BY AND BETWEEN THE CITY OF PUEBLO, THE CHEYENNE AND ARAPAHO TRIBES OF OKLAHOMA AND THE NATIVE AMERICAN LAND GROUP — PUEBLO, L.L.C. RELATING TO THE HOMECOMING PROJECT AND AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL TO EXECUTE SAME ISSUE Should the Council approve the Letter of Intent relating to the Homecoming Project? RECOMMENDATION Approve the Letter of Intent. BACKGROUND The Letter of Intent establishes the general terms of cooperation and of an intended intergovernmental agreement ( "Agreement ") between the City of Pueblo ( "City "), the Cheyenne and Arapaho Tribes of Oklahoma ( "Tribes ") and Native American Land Group — Pueblo, L.L.C. ( "NALG ") with respect to the creation of a new reservation of approximately five acres for the Tribes on the property commonly known as 100 S. Main Street, Pueblo, Colorado ( "Lands ") on which a retail development, including casino -style gaming (such as slot machines, table games, sports book betting and lotteries as authorized and limited in a proposed Colorado - Cheyenne and Arapaho Tribes of Oklahoma State - Tribal Compact) is to be conducted ( "Homecoming Project'). The Letter of Intent is an expression of intent only and no liability or obligation of any nature is intended to, nor shall any liability or obligation, be created thereby. It is anticipated that the Homecoming Project will be developed as a world -class entertainment and retail destination, featuring: hotel with approximately 200 rooms; Plains Indian Cultural Center with approximately 3,000 square feet of display space; Native American Healing Center and Spa of approximately 3,000 square feet; Casino with approximately 750 to 1500 devices and 10 table games in a facility of approximately 40,000 square feet in size ( "Gaming Facility "); and 1.25 parking spaces per device to accommodate the Homecoming Project and neighboring retail district. It is expected the Homecoming Project will create 700 new direct and indirect jobs. The Lands will be tribal trust lands and not part of the City but will be subject to the Agreement and limited waiver of sovereign immunity as described in the Letter of Intent and Agreement. The Citywill provide municipal services to the Homecoming Project and as compen- sation therefor and local impacts, the Tribes and NALG will voluntarily pay to and share with the City an amount equal to 5% of gross gaming revenue (total amount wagered less payouts from the Gaming Facility). All infrastructure required by the Homecoming Project will be constructed and installed by the Tribes and NALG at no expense to the City. The Tribes and NALG will pay to the City double the HARP Common Area Maintenance Charges in an amount not to exceed $27,216 per year plus periodic adjustments based on the CPI. If the City does not receive the share of gross gaming revenue for two consecutive quarters, the City may, at its option, terminate municipal services or exercise a lien on the gaming devices, or both. The Tribes will work with local restauranteurs to operate and manage the food service facilities in the Homecoming Project, and such facilities will be subject to the same taxes and regulations that would apply to a non - Indian food service facility. Except as they relate to gaming or otherwise specified in the Agreement, the Tribes will adopt City laws as Tribal Law on the Lands and the Homecoming Project and Gaming Facility shall adhere to all City ordinances, regulations, and procedures including, without limitation, City's sales and use tax, lodger's tax, and no- smoking ordinances. The Homecoming Project development plans and design are subject to City approval and shall comply with the City's subdivision, planning and zoning ordinances. The Tribes and NALG shall, in good faith, endeavor to construct the Homecoming Project under a project labor agreement. The Tribes will irrevocably provide a limited waiver of their inherent sovereign immunity and defenses based thereon from any claim or litigation arising under or otherwise relating to the Agreement and agree not to exercise thejurisdiction of any tribal courts or other tribal forums with respect to any such claim or litigation. City will publicly support the Tribal efforts to have the Lands taken into trust by the Department of Interior for the benefit of the Tribes and to successfully negotiate a State - Tribal Compact with the State of Colorado. If the Homecoming Project is not completed within 24 months after the Lands are taken into Trust by the US. Secretary of Interior, or, if the Tribes fail for a period of 24 consecutive months to conduct, operate and maintain a world -class resort -2- including the Gaming Facility on the Lands, then the Tribes shall either (a) surrender the Lands to the federal government, or (b) return the Lands to private ownership. FINANCIAL IMPACT See Background. -3- LETTER OF INTENT BY AND BETWEEN THE CITY OF PUEBLO THE CHEYENNE AND ARAPAHO TRIBES OF OKLAHOMA AND NATIVE AMERICAN LAND GROUP, LLC This Letter of Intent ( "LOI ") sets forth the general terms of an intended Inter - Governmental Agreement (the "Agreement ") by and between the Cheyenne and Arapaho Tribes of Oklahoma (the "Tribes ") and the City of Pueblo, Colorado ( "the City "). Said Agreement would establish the terms of cooperation between Native American Land Group - Pueblo, L.L.C. ( "NALG "), the City and the the Tribes, with respect to the creation of a new reservation of not more than approximately five acres for the Tribes on the property commonly known as 100 S. Main St., Pueblo, CO (the "Subject Lands ") on which a retail development, including casino -style gaming (such as slot machines, table games, sports book betting and lotteries, as authorized and limited in the Colorado- Cheyenne & Arapaho Tribes of Oklahoma State - Tribal Compact), is to be conducted (the "Homecoming Project "). 2. The City Council has determined that the Homecoming Project has the potential to bring substantial benefits to the City of Pueblo, including construction jobs, funding for projects of high priority, a significant increase in tourism and a general catalyst to economic activity throughout the city. 3. This LOI is an expression of intent only and no liability or obligation of any nature is intended to, nor shall any liability or obligation, be created hereby. This LOI does not constitute a binding agreement to consummate the transactions contemplated hereby nor does it constitute an agreement to negotiate or enter into the Agreement or any agreement. 4. The City, the Tribes and NALG are engaging in this LOI to assure that the plans, processes and views of the City are known and can be assured throughout the federal settlement process and the State - Tribal Compact negotiations. 5. The Agreement would be expected to include the following or similar provisions: A. Recitals: (i) The City supports the Tribes' efforts to return to a meaningful economic and cultural presence in Colorado. (ii) The Tribes are seeking to own and operate a world -class facility in Colorado and have retained NALG as the exclusive Developer in connection with any such facility. (iii) The City and the Tribes believe it is appropriate that the Tribes have settlement trust land within the City, and that, for reasons more fully described herein, it would be beneficial to both the Tribes and the City for the Tribes to own and operate a world -class resort (including a casino -style gaming facility) on the Subject Lands. B. The City finds that there are significant benefits of the Homecoming Project to the City, including: (i) Development and operation by the Tribes and NALG of a world -class entertainment and retail destination on the Subject Lands, featuring: a) Hotel, with approximately 200 rooms, or as appropriate to accommodate demand b) Plains Indian Cultural Center, approximately 3000 sq. ft. of display space c) Native American Healing Center & Spa, approximately 3000 sq. ft. d) Casino, with approximately 750 to 1500 devices and 10 table games in a facility approximately 40,000 sq. ft. in size (the "Facility ") e) 1.25 parking spaces per device to accommodate the above and neighboring retail district (ii) Generate additional commercial attention to Pueblo, (iii) Establish Pueblo as a nationally- recognized travel and convention destination, (iv) Creation of an expected 700 new direct and indirect jobs with superior salary and benefits (v) Provide the city of Pueblo with new revenues to be applied towards city projects of high priority C. Subject Lands shall be acquired by the Tribes in an open market purchase. Such lands shall be tribal trust lands and shall not be part of the City, but shall be subject to the IGA and waivers of sovereign immunity by the Tribes with respect to the Subject Lands as more fully described, herein. D. Local Impact and Infrastructure Support: (i) The Tribes and NALG desire to compensate the City for local impacts, provision of municipal services (as described more fully, herein), and for meeting the infrastructure demands of the Homecoming Project; provided, however, that all infrastructure required for the Homecoming Project and Facility shall be constructed and installed by the Tribes or NALG at no expense to the City. (ii) As compensation to the City for such services, the Tribes and NALG shall, on a quarterly basis, voluntarily pay to and share revenue with the City in an amount equal to 5% of gross gaming revenue (i.e., total amount wagered less payouts) from the Facility. To the extent legally permissable, the percentage of gross gaming revenue to be received by City shall be structured and paid in such manner as not to constitute revenue nor fiscal year spending by City, within the meaning and limitations of Section 20 of Artcle X of the Colorado Constitution. (iii) The Tribes and NALG shall also agree to pay to the City double the Common Area Maintenance ( "CAM ") charges, which would apply to the facility if the facility were on the HARP and subject to the CAM charges, in an amount not to exceed $27,216 per year (calculated as 1134 linear feet of frontage times $1 per linear foot per month times 2), plus periodic adjustments based on the Consumer Price Index, as provided under the CAM. (iv) If City does not receive the above described share of revenue from the Tribes for two consecutive quarters, City may, at its option, terminate the provision of municipal services to the Homecoming Project or exercise a lien on the Facility's gaming devices, or both. E. The Tribes intend to work with local restaurateurs to operate and manage the food service facilities in the Homecoming Project, and such facilities would be subject to the same taxes and regulations that would apply to a non - Indian -owned food service facility. F. The City shall provide all police, fire, emergency, public utilities and other similar municipal services to the Homecoming Project (in the same manner as if the 2 Homecoming Project were not owned by an Indian tribe). Except for emergencies, the Tribes and the public shall, at all times, have reasonable access to the Homecoming Project from each public street adjoining the Homecoming Project. G. Except as they relate to gaming or as otherwise specified herein, the Tribes shall adopt City Law as Tribal Law on the Subject Lands, and the Homecoming Project and the Facility shall adhere to all City ordinances, regulations and procedures, including, without limitation, City's sales and use tax, lodger's tax and no- smoking ordinances. Gaming on the facility shall be conducted in a manner in accordance with the State - Tribal Compact. H. The Tribes shall develop the building plan and architectural design for the Homecoming Project and Facility, which shall be subject to review and approval by the City and shall comply with the City's subdivision, planning and zoning ordinances. I. The Tribes and NALG shall, in good faith, endeavor to construct the Homecoming Project under a project labor agreement. J. The City shall publicly support the Tribes' efforts (a) to have such Subject Lands taken into trust by the U.S. Department of Interior for the benefit of the Tribes and (b) to successfully negotiate a Compact with the State of Colorado, including subjecting the Subject Lands to the criminal law of the State of Colorado. K. The City shall, at no cost to the City, reasonably cooperate with the Tribes, NALG and adjacent land owners, to facilitate and expedite the construction and completion of all elements of the Homecoming Project that have identifiable benefits to other businesses in the vicinity of the Homecoming Project (e.g., sufficient land for parking structure, ingress /egress, etc.). L. The Tribes shall irrevocably provide a limited waiver of their inherent sovereign immunity, and any defenses based thereon, from any claim, litigation or dispute arising under the provisions of the Agreement, or otherwise relating to the Agreement, by or between or affecting the City, Tribes or NALG. Any award of damages against the Tribes would be satisfied solely from the Gross Revenues of the Facility. M. Venue for any legal proceeding arising out of or related to the Agreement shall be stipulated to be Denver, Colorado and the Tribes and the City of Pueblo shall submit to the jurisdiction of the Federal District Court for the District of Colorado. Should said Federal District Court not have subject matter jurisdiction over the matter, then the Tribes shall submit to the jurisdiction of the state courts of Colorado, with venue in Denver. N. The Tribes shall agree that they may not exercise the jurisdiction of any of their tribal courts or other tribal forums (whether now or hereafter existing) over any suit, action, or proceeding with respect to or involving any provision of the Agreement and the Tribes hereby irrevocably waive (i) any claim or right which the Tribes may possess to the exercise of such jurisdiction and (ii) any requirement that tribal remedies be exhausted. O. If the Homecoming Project is not completed within 24 months after the Subject Lands are taken into trust by the U.S. Secretary of Interior, or if the Tribes fail at any time for a period of 24 consecutive months to conduct, operate and maintain a world -class resort including the Facility upon the Subject Lands, then the Tribes shall either (i) surrender the Subject Lands to the United States Government, or (ii) return the Subject Land to private ownership. It is understood by the parties to this Letter of Intent that the size of the Homecoming Project as defined in B(i) of this Agreement may be reasonably adjusted to reflect actual market demand. THE CITY OF PUEBLO, COLORADO CHEYENNE AND ARAPAHO TRIBES OF OKLAHOMA a Dat NATIVE AMERICAN LAND GROUP — PUEBLO, L.L.C. By: Steve Hillard Chief Executive Officer By: William Blind Vice Chairman Date: 2