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Home My WebLink About11211RESOLUTION NO. 11211 A RESOLUTION APPROVING TERMINATION AGREEMENT BETWEEN CITY OF PUEBLO, PUEBLO DEVELOPMENT FOUNDATION AND ELDORADO STONE, LLC RELATING TO THE EXPANSION OF ELDORADO STONE LLC'S BUSINESS AT PUEBLO MEMORIAL AIRPORT, AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL TO EXECUTE SAME, AND REPEALING RESOLUTION NO. 10404 BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1 The Termination Agreement dated as of November 1, 2007 between the City of Pueblo, Pueblo Development Foundation and Eldorado Stone, LLC relating to the expansion of Eldorado Stone LLC's business at Pueblo Memorial Airport Industrial Park, and Special Warranty Deed referred to therein, copies of which are attached hereto, having been approved as to form by the City Attorney, are hereby approved and accepted. The President of the City Council is authorized to execute the Termination Agreement in the name of the City and the City Clerk is directed to affix the seal of the City thereto and attest same. SECTION 2 Resolution No. 10404 is hereby repealed, except that the $35,780 expended pursuant thereto for engineering services is hereby authorized and confirmed. INTRODUCED January 28, 2008 BY Randy Thurston Councilperson PRESIf NT'ei Cif' Council ATTEST D BY 9e6.11 , 2,11 FD HD 0 IRIEW Background Paper for Proposed RESOLUTION AGENDA ITEM # Iq DATE: January 28, 2008 DEPARTMENT: Law Department TITLE A RESOLUTION APPROVING TERMINATION AGREEMENT BETWEEN CITY OF PUEBLO, PUEBLO DEVELOPMENT FOUNDATION AND ELDORADO STONE, LLC RELATING TO THE EXPANSION OF ELDORADO STONE LLC'S BUSINESS AT PUEBLO MEMORIAL AIRPORT, AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL TO EXECUTE SAME, AND REPEALING RESOLUTION NO. 10404 ISSUE Should the City Council approve the Termination Agreement cancelling the 2005 transaction for Eldorado Stone, LLC expanding its business at the Pueblo Memorial Airport Industrial Park RECOMMENDATION Approve the Termination Agreement. BACKGROUND On May 23, 2005, City Council approved the use of $1.5 million one -half cent sales tax funds for the expansion of Eldorado Stone, LLC business at the Pueblo Memorial Airport Industrial Park. The 2005 expansion was to construct an approximately 6 acre concrete storage area on adjoining Lot 57 for storage of Eldorado Stone, LLC manufactured products and the employment of an additional twenty -five full -time employees. Eldorado Stone, LLC has determined for business purposes not to expand its business as contemplated by the 2005 expansion. FINANCIAL IMPACT Terminating the Eldorado Stone, LLC expansion project will release $1.5 million committed to the project which will become available for other job creating capital improvement projects TERMINATION AGREEMENT THIS TERMINATION AGREEMENT entered into as of November 1, 2007 by and between Pueblo, a municipal corporation ( "City"), Eldorado Stone, LLC, a Delaware limited liability company ( "Company ") and Pueblo Development Foundation, a Colorado nonprofit corporation ( "Foundation "), WITNESSETH: WHEREAS, City and Company entered into an Agreement dated May 23, 2005 relating to the expansion of Company's business at Pueblo Memorial Airport Industrial Park ( "Company Agreement "), and WHEREAS, City and Foundation entered into an Agreement dated May 23, 2005 relating to the Company's expansion of its business at Pueblo Memorial Airport Industrial Park ( "Foundation Agreement "), and WHEREAS, Company and Foundation entered into Lease Modification No. 2 dated May 23, 2005 relating to the Company's expansion of its business at Pueblo Memorial Airport ( "Lease Modification No. 2 "), and WHEREAS, Company has determined for business purposes not to expand its business at the Pueblo Memorial Airport Industrial Park as contemplated by the Company Agreement, Foundation Agreement and Lease Modification No. 2, and WHEREAS, City, Company and Foundation desire to terminate and cancel the Company Agreement, Foundation Agreement and Lease Modification No. 2. NOW, THEREFORE, in consideration of the foregoing and mutual covenants contained herein, City, Company and Foundation agree as follows: 1. The Company Agreement, Foundation Agreement and Lease Modification No. 2 are hereby cancelled and terminated effective November 1, 2007. City, Company and Foundation hereby mutually release and discharge each other from all liabilities and obligations under or arising out of the Company Agreement, Foundation Agreement and/or Lease Modification No. 2, and each party waives any and all rights and remedies such party may have thereunder. 2. Foundation shall execute and deliver to City a special warranty deed in form and content approved by the City Attorney transferring to City fee simple title, free of liens and encumbrances, to Lot 57, Pueblo Memorial Airport Industrial Park Subdivision, Pueblo County, Colorado. 3. The following agreements shall remain in full force and effect binding on the parties to such agreement, and their respective successors and assigns, enforceable according to their terms, and shall not be modified or deemed to be modified by this Termination Agreement: (a) Lease dated January 10, 2000 and Lease Modification dated September 5, 2002 between Foundation and Company and Company's predecessor in interest Stonecraft Industries, LLC relating to Lot 58, Pueblo Memorial Airport Industrial Park Subdivision, Pueblo County, Colorado. (b) Agreement dated June 10, 2000 and Agreement dated June 10, 2002 between City and Company and Company's predecessor in interest Stonecraft Industries, LLC relating to job creating capital improvement projects. (c) Agreement dated January 10, 2000 between City and Foundation relating to the StoneCraft Industries transaction. 4. The persons signing this Termination Agreement in the name and on behalf of a party hereto represents and warrants that such person and party have the requisite power and authority to enter into this Termination Agreement, and that this Termination Agreement is a valid and legally binding obligation of such party enforceable against such party in accordance with its terms. 5. This Termination Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and assigns. Executed at Pueblo, Colorado the day and year first above written. PUEBLO D VELOPMENT FOUNDATION 3 f / N e: Title. [SEAL] Attest: Nam • J .j rry t . Sti +w Title: PUEBLO, A MUNI B President of the City Council SEAL] Attest: City rk ` ELDORADO STONE, LLC / -- By 4 .2EN�f Na me: ,t0 A ze ;V 4 � Title: lIV40 SEAL] Attest: Title: 0 Sapp Resolution 11211 SPECIAL WARRANTY DEED 17870 WD 002/0040/ : 24 PM D ,III r ill - Ortiz • _Il�6 f �l�'l��,llll THISDEED,dated as of November 1, 2007 W —n Pueblo Development. Foundation a corporation duly organized and existing under and by virtue of the laws of the Stare of Colorado .gramr,nnd City of Pueblo, a Colorado Municipal Corporation vdarolegaladdressis 1 City Hall Place, Pueblo, CO, 81003 of the ecoumyof Pueblo and Stole or Colorado .granteft WITNESS, that the grantor, for and in consideration of the sum of One Dollar and other good and valuable consideration kwl the receipt and sufficiency of which is hereby acknowledged, has grunted, bargained, sold and conveyed, and by these presents does grant, bargain, sell, convey and confirm unto the grameeWC its IpjlXSUCCessors and assigns forever, all the real property, together with improvements, if any, situate, lying and being in the County of Pueblo and State of Colorado, described as follows: Lot 57, Pueblo Memorial Airport Industrial Park Subdivision, Pueblo County, Colorado Documentary Fee: Exempt, consideration less than $500.00 also known by Street and number as: None assessors schedule or parcel number. not available TOGETHER with all and singular the hereddameots and appurtenances thereunto beloogiag, or in anywise appertaining, the reversion and reversions, remainder and remainders, mots, issues and profits thereof, and all the estmC, right, title, interest, claim and demand wbeteoeve - of the grantor, either in law m equity. of, in and to the show: bargained premises, with the heredilareems and appurtenances; I'D HAVE AND TO HOLD the said premises above bargained and described with the appurtenances, unto the gran eeW, its JXbX successors and assigns forever The grantor, for itself, its successors and assigns does covenant and agree that it shall and will WAR- RANT AND FOREVER DEFEND the above bargained pmmism in the quiet and peaceable possssioo of the gmntmW. its E8d( successors and assigns, against all and every person or persons claiming the whole or any part thereof, by, through or under the grantor. IN WITNESS WHEREOF, the grumor has caused its corporate name to be hereunto subscribed by its President, and its corporate seal to be hen umo affixed, attested by its Secretary, the day and year first above written. AnesC pue blo DevelQpmaor Foundation Dn r Smeury 'y V v e � g � s �. lir I r y V R - � �I OFCOLORADO \I �co_mnty or Pueblo 1 as f.�S '24th r January zo0e % The t was acknowledged before this der of N by w e ,: ^ ert Root as President as Secretary .,pF ��Ipa�bevelopment Foundation awrpnration. (.. ,. rr.a4 Y•. Witness my hand and Official seal. / My commission expires: _ 2/14/2 011 �. / —" •Ina Deaver. inner "City end" r+uun l'uMic nameuJ nbna of Wvin erttliy Ncwh eNlm 4pl DexTlp�o 1[ )&)1106.1. coal Nn 16B. Rm 4 SPe Ou, Waanwrrry DEED (CerPmo ) Brodrord Pubhsnn , 1741 Wazw Sr, Denvnq CO 0010] — 1)0)1292- 2500— www.brudfordpublishingcom — 9 -0I