HomeMy WebLinkAbout10888RESOLUTION NO. 10888
A RESOLUTION APPROVING A GROUND LEASE AGREEMENT, GARAGE LEASE
AGREEMENT AND ASSIGNMENT OF PROFESSIONAL SERVICES AGREEMENT BETWEEN
THE CITY OF PUEBLO AND PUEBLO MAIN STREET GARAGE CORPORATION, A
COOPERATION AGREEMENT BETWEEN THE CITY OF PUEBLO AND THE URBAN
RENEWAL AUTHORITY OF PUEBLO, COLORADO, A PARKING PERMIT BETWEEN THE
CITY OF PUEBLO AND CINGULAR WIRELESS, LCC, AND A SUBORDINATION
AGREEMENT BETWEEN THE CITY OF PUEBLO AND NDC NEW MARKETS INVESTMENT
XIX, L.P., ALL RELATING TO THE DESIGN, CONSTRUCTION, FINANCING AND LEASING
OF A PROPOSED PARKING GARAGE, AND AUTHORIZING THE PRESIDENT OR VICE -
PRESIDENT OF THE CITY COUNCIL TO EXECUTE SAME
WHEREAS, the Pueblo Main Street Garage Corporation, a Colorado nonprofit
corporation (the "Corporation ") proposes to finance, design, and construct an approximately
742 -space parking garage (the "Garage ") on land owned by the City of Pueblo (the "Land "), and
WHEREAS, the City of Pueblo, a Municipal Corporation (the "City ") intends to lease the
Land to Corporation under a Ground Lease Agreement and contemporaneously therewith to
lease the Garage from the Corporation under a Garage Lease Agreement, and
WHEREAS, in furtherance of the financing of the construction of the Garage, the City
and the Urban Renewal Authority of Pueblo, Colorado (the "Authority ") proposes to enter into a
Cooperation Agreement Series 2006 Bonds, and
WHEREAS, in furtherance of the Corporation's design and construction of the Garage,
the Agreement for Professional Design and Engineering Services dated October 10, 2006
between the City and The Durrant Group, Inc. will be assigned by the City to the Corporation,
and
WHEREAS, in furtherance of the use and occupancy of the Garage, the City and
Cingular Wireless, LLC propose to enter into parking permit for approximately 297 parking
spaces in the Parking Garage for use by the full -time employees of Cingular Wireless, LLC, and
WHEREAS, there have been presented to the City Council (a) a form of Ground Lease
Agreement dated as of December 14, 2006 between the City as Lessor and the Corporation as
Lessee (the "Ground Lease Agreement "), (b) a form of Garage Lease Agreement dated as of
December 14, 2006 between the Corporation as Landlord and the City as Lessee (the "Garage
Lease Agreement "), (c) a form of Cooperation Agreement Series 2006 Bonds dated as of
December 14, 2006 between the City and Authority (the "Cooperation Agreement Series 2006
Bonds "), (d) a form of Assignment of Professional Services Agreement dated as of December
14, 2006 between the City as assignor and the Corporation as assignee (the "Assignment of
Professional Services Agreement "), (e) a form of a Parking Permit dated as of December 14,
2006 between the City and Cingular Wireless, LLC (the "Parking Permit "), and (f) a form of
Subordination, Attornment and Non - Disturbance Agreement dated as of December 14, 2006
between the City of Pueblo, as Tenant and NDC New Markets Investment XIX, L.P., as Lender
(the "Subordination Agreement "). NOW, THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1
All action heretofore taken by the City Council or the officers or employees of the City,
directed toward the financing, design and construction of the Garage, the leasing of land to the
Corporation, the lease of the Garage by the City, and the Cingular Wireless, LLC parking permit,
are hereby ratified, approved and confirmed.
SECTION 2
The City Council hereby finds and determines, pursuant to the provisions of the City
Charter and applicable law, that (a) the leasing of City land to the Corporation under the terms
and provisions set forth in the Ground Lease Agreement, (b) the leasing of the Garage from the
Corporation by the City under the terms and provisions of the Garage Lease Agreement, (c) the
entry into a cooperation agreement between the City and the Authority under the terms and
provisions of the Cooperation Agreement Series 2006 Bonds, (d) the assignment of the
professional design and engineering services agreement under the terms and provisions of the
Assignment of Professional Services Agreement, (e) the parking permit for use by the full -time
employees of Cingular Wireless, LLC under the terms and provisions of the Parking Permit, and
(f) the subordination of the City interest in the Garage Lease Agreement under the terms and
provisions of the Subordination Agreement are necessary, convenient and in furtherance of the
governmental purposes of the City and are in the best interests of the City.
SECTION 3
The Ground Lease Agreement, the Garage Lease Agreement, the Cooperation
Agreement Series 2006 Bonds, the Assignment of Professional Services Agreement, the
Parking Permit, and the Subordination Agreement in substantially the form presented to this
meeting of the City Council and with substantially the same content are in all respects approved,
authorized and confirmed. The President of the City Council or Vice President of the City
Council is authorized and directed to affix her or his signature to the Ground Lease Agreement,
the Garage Lease Agreement, the Cooperation Agreement Series 2006 Bonds, the Professional
Services Assignment Agreement, the Parking Permit, and the Subordination Agreement in
substantially the form and with substantially the same content as presented to this meeting, but
with such changes, modifications, additions or deletions therein as the President or Vice
President of the City Council and the City Attorney shall deem desirable, necessary or
appropriate, the execution thereof to constitute conclusive evidence of their approval of any and
all changes modifications, additions or deletions therein from the form of the document
presented to this meeting.
SECTION 4
The City Clerk is hereby authorized and directed to attest all signatures and acts of any
official of the City Council or the City in connection with the matters authorized by this
Resolution, and to place the seal of the City on the documents authorized and approved by this
Resolution. The President or Vice President of the City Council and other officials of the City
Council of the City are hereby authorized to execute and deliver for and on behalf of the City
any and all additional certificates, documents and other papers and to perform all other acts that
they may deem necessary or appropriate in order to implement and carry out the transactions
and other matters authorized and contemplated by this Resolution.
SECTION 5
NO PROVISION OF THIS RESOLUTION, THE GROUND LEASE AGREEMENT, THE
ASSIGNMENT OF PROFESSIONAL SERVICES AGREEMENT, THE PARKING PERMIT, THE
GARAGE LEASE AGREEMENT, THE COOPERATION AGREEMENT SERIES 2006 BONDS
OR SUBORDINATION AGREEMENT SHALL BE CONSTRUED AS CREATING OR
CONSTITUTING A GENERAL OBLIGATION OR OTHER INDEBTEDNESS OF THE CITY OR
A MANDATORY PAYMENT OBLIGATION OF THE CITY IN ANY FISCAL YEAR BEYOND A
FISCAL YEAR FOR WHICH THE CITY HAS APPROPRIATED AMOUNTS TO MAKE
PAYMENTS THEREUNDER.
SECTION 6
The City Council hereby determines and declares that (a) the rentals as set forth in the
Garage Lease Agreement and the percentage of debt service set forth in the Cooperation
Agreement Series 2006 Bonds represent a reasonable value of the use of the Garage and do
not exceed a reasonable amount so as to place the City under an economic or practical
compulsion to renew the Garage Lease Agreement or to pay debt service under the
Cooperation Agreement Series 2006 Bonds, and (b) the leasing of the Garage pursuant to
Garage Lease Agreement and payment or debt service under the Cooperation Agreement
Series 2006 Bonds will result in facilities of comparable quality and meeting the same
requirements and standards as would be necessary if the construction, acquisition,
improvement and equipping the Garage were performed by the City.
INTRODUCED December 11, 2006
BY Randy Thurston
Councilperson
APPROVED:
President of Cit Council
ATTESTED BY:
CITY CLERK