HomeMy WebLinkAbout11138RESOLUTION NO. 11138
A RESOLUTION APPROVING THE EXERCISE OPTION TO PURCHASE LEA GONZALES
PARK (PITTS), VINEWOOD PARK, AND MOYNIHAN PARK AND TRANSFERRING
$1,000,000 FROM CAPITAL IMPROVEMENT PROJECT NO. CPO413, PARK LAND
PURCHASE ACCOUNT, THEREFOR
WHEREAS, the City and the Bishop of Pueblo, a corporation sole, entered into a Lease
Agreement dated as of May 10, 2004 ( "Lease Purchase Agreement "); and
WHEREAS, pursuant to Paragraph 13 of the Lease Purchase Agreement, City was
granted the option to purchase the Leased Property (as described in the Lease Purchase
Agreement, consisting of approximately 616,778 square feet of land) for the purchase price of
$1,077,000 ( "Option "); and
WHEREAS, City desires to exercise its Option to Purchase the Leased Property, and the
Bishop of Pueblo is willing to accept $1 million for the purchase of the Leased Property; NOW
THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1.
City does hereby exercise its Option to Purchase Lea
Park, and Moynihan Park for a purchase price of $1 million.
and instructed to give written notice of City's exercise of
documents and instruments and perform all acts requin
consummate the purchase of the Leased Property.
SECTION 2.
INTRODUCED October 22, 2007
Funds in the amount of $1,000,000 are hereby transferred from Capital Improvement
Project No. CPO413, Park Land Purchase, for the purchase of said parks.
SECTION 3_
The Resolution shall become effective upon final passage and approval.
ATTESTED BY
APPROVED: a
ESID NTof City Council
CITY CLERK
Gonzales (Pitts) Park, Vinewood
The City Manager is authorized
the Option and to execute all
d to exercise the Option and
Michael Occhiato
Councilperson
Res. 11 1
Background Paper for Proposed
RESOLUTION
AGENDA ITEM # I 0
DATE: October 22, 2007
DEPARTMENT: OFFICE OF THE CITY MANAGER
DAVE GALLI, CITY MANAGER
DOUG FITZGERALD, ASSISTANT CITY MANAGER
TITLE
A RESOLUTION APPROVING THE EXERCISE OPTION TO PURCHASE LEA
GONZALES PARK (PITTS), VINEWOOD PARK, AND MOYNIHAN PARK AND
TRANSFERRING $1,000,000 FROM CAPITAL IMPROVEMENT PROJECT NO.
CPO413, PARK LAND PURCHASE ACCOUNT, THEREFOR
BACKGROUND
On May 10, 2004, the City Council entered into a lease /purchase agreement with the
Bishop of Pueblo to acquire lands commonly known as Lea Gonzales Park (Pitts),
Vinewood Park, and Moynihan Park to be utilized for recreational purposes and city
park land use. The total amount of acreage for these three (3) properties is
approximately 616,778 square feet with the option to buy during anytime of the lease for
a purchase price of $1,077,000. The original agreement was for five years with one -
year lease terms (annual rent of $65,170) commencing on January 1, 2004.
Subsequently, the City and the Bishop of Pueblo have agreed that the purchase price
will be $1,000,000, thus ending the lease /purchase agreement 1 year earlier.
Approval of the Resolution.
FINANCIAL IMPACT
An amount of $1,000,000 will be transferred from the Capital Improvement Account
CPO413 for the purchase of the parks. The City will save a total of $142,170: $65,170
in lease payments and $77,000 from the original purchase price.