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HomeMy WebLinkAbout11297RESOLUTION NO. 11297 A RESOLUTION APPROVING AN ECONOMIC DEVELOPMENT CONTRACT BETWEEN CITY OF PUEBLO AND PUEBLO ECONOMIC DEVELOPMENT CORPORATION AND AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL TO EXECUTE SAME BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1 The Economic Development Contract dated January 1, 2008 between the City of Pueblo and Pueblo Economic Development Corporation, 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 authorized to execute the Economic Development Contract 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 This Resolution shall become effective upon final passage and approval. BY Randy Thurston Councilperson I`81f I T' i ILim ATTEST D BY INTRODUCED May 12, 2008 R-e-s, oaq D 0 Background Paper for Proposed RESOLUTION AGENDA ITEM # - DATE: May 12, 2008 DEPARTMENT: Law Department TITLE A RESOLUTION APPROVING AN ECONOMIC DEVELOPMENT CONTRACT BETWEEN CITY OF PUEBLO AND PUEBLO ECONOMIC DEVELOPMENT CORPORATION AND AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL TO EXECUTE SAME ISSUE Should the City Council approve a contract with PEDCO to perform economic development services for the City? City staff and PEDCO recommend approval. BACKGROUND PEDCO will develop and implement an economic development program to attract new and expanded businesses to locate within the City and Pueblo Memorial Airport which will provide primary job opportunities for the citizens of the City. PEDCO will annually identify and develop specific economic development activities for which City funds will be used. City Council will annually budget and appropriate funds for PEDCO's use. PEDCO will at least semi - annually make a public presentation to City Council outlining its economic development activities during the prior period. The contract sets forth the procedures to be followed with respect to applications for primaryjob creating capital improvement projects using City's one -half cent sales and use tax revenues submitted by PEDCO. FINANCIAL IMPACT City Council will annually appropriate and budget funds to be paid to PEDCO for economic development services to be performed by PEDCO. ECONOMIC DEVELOPMENT CONTRACT THIS CONTRACT made and entered into as of January 1, 2008 by and between the City of Pueblo, a Municipal Corporation (the "City") and Pueblo Economic Development Corporation, a Colorado non -profit corporation (the "PEDCO "). WITNESSETH, WHEREAS, City is vitally interested in the economic well being of the City, and WHEREAS, City desires to have economic development activities aggressively pursued for the benefit of the City and its citizens, and WHEREAS, PEDCO has for a number of years been engaged in economic development and job creation activities, and WHEREAS, City desires to contract with PEDCO to furnish and provide economic development services necessary to improve and enhance economic development within the City and Pueblo Memorial Airport. NOW, THEREFORE, in consideration of the foregoing and mutual covenants contained herein, City and PEDCO agree as follows: 1. Engagement City engages PEDCO on a non - exclusive basis to develop and implement an economic development program to attract new and expanded business to locate within the City and the Pueblo Memorial Airport thereby providing employment opportunities for the citizens of the City. PEDCO accepts such engagement. 2. Term. The term of this Contract shall be from January 1, 2008 to December 31, 2008 and will automatically renew for successive one -year terms thereafter. Either City or PEDCO may terminate this Contract, with or without cause and without liability or penalty, upon ninety (90) days' prior written notice given at any time to the other party specifying the date of termination. 3. Funding In full and complete compensation for services to be performed by PEDCO under this Contract, City agrees to pay to PEDCO, and PEDCO agrees to accept, such amounts as the City Council of City may annually budget and appropriate for purposes of this Contract ( "City Funds "). City Funds annually budgeted and appropriated shall be paid in twelve (12) equal monthly installments unless this Contract is earlier terminated as herein provided. 4. PEDCO's Budget and Report (a) The Board of Directors of PEDCO shall annually identify and develop specific economic development activities for which City Funds will be expended during the next calendar year and adopt a budget to carry out such activities. PEDCO shall submit copies thereof to the City with its request for City Funds ( "Request "). Each Request shall be submitted during City's annual budgeting process. (b) PEDCO shall annually submit to the City: (i) financial statements showing all revenues and expenditures. (ii) reports identifying economic development activities for which City Funds were expended and the amounts therefor. (iii) an audited statement of revenues and expenditures. (c) PEDCO shall at least semi - annually make a public presentation to the City Council essentially outlining their economic development activities including the following. (i) the method used to attract primary jobs into the community. presentation. (ii) the number of inquiries that were handled since the last (iii) the number of such inquiries that were considered good prospects. (iv) the number and type of businesses that were considered excellent prospects and have shown considerable interest in the community. (v) the number of businesses that were considered likely to move into the community assuming satisfactory negotiations. (vi) specific, non - identifiable information on the businesses described in (iv) and (v) above, including the number of jobs, type of jobs, and wage and benefit information. 5. City's One -Half Cent Sales and Use Tax Funds PEDCO may sponsor and file applications with the City for primary job creating capital improvement project funding out of the City's one -half cent sales and use tax revenues ( "Sales Tax Revenues ") ( "Applications ") for and on behalf of businesses intending to locate or expand their activities within the City or the Pueblo Memorial Airport. This authorization shall not limit or restrict, nor be construed to limit or restrict any other organization or business from filing Applications directly with the City. The filing and processing of Applications shall meet and comply with the requirements and procedures set forth below: (a) All Applications shall be filed by PEDCO with the City Manager on forms approved by the City Manager. Applications shall be processed, if for Sales Tax Revenues for primary job creating capital improvement projects, pursuant to the provisions of Ordinance No. 6381, and, if for City owned land at the Pueblo Memorial Airport Industrial Park ( "Land "), pursuant to Resolution No. 5915, or as such Ordinance or Resolution may be subsequently amended. (b) PEDCO does not have any authority to bind, commit or obligate the City with respect to Sales Tax Revenues or Land for any primary job creating capital improvement project. The City Council of City ( "City Council ") by resolution or ordinance approved and adopted in public session is the only body authorized by Charter or law to bind, commit or obligate Sales Tax Revenues or the Land. (c) The City Council may meet in executive session with representatives of PEDCO for purposes of determining positions relative to negotiations for a potential primary job creating capital improvement project using Sales Tax Revenues or Land and instructing PEDCO with respect thereto. PEDCO and City understand and agree that discussions in executive session are confidential and shall not be disclosed to any person or entity including, without limitation, an Applicant. PEDCO and City further understand and agree that any instructions given to PEDCO are not binding on the City Council or City and that (i) the City Council may not adopt any proposed policy, position, resolution, rule, regulation, or formal action at any executive session that is not open to the public, and (ii) that any position, commitment or action taken with respect to Sales Tax Revenues or Land for a potential primary job creating capital improvement project must be taken by the City Council by resolution or ordinance adopted at a meeting open to the public and not in executive session. (d) PEDCO in its dealings with an Applicant concerning a primary job creating capital improvement project for which Sales Tax Revenues or Land is sought to be made available shall advise such Applicant in writing that (i) PEDCO is not the agent of the City and has no authority to bind, commit or obligate the City in any manner or with respect to any matter including, without limitation, making Sales Tax Revenues or Land available for primary job creating capital improvement projects, (ii) City Council may not and does not make any preliminary or final commitment or decision with respect to Sales Tax Revenues or Land for a primary job creating capital improvement project in executive session and (iii) any commitment or decision of the City Council must be made by the City Council by resolution or ordinance adopted at a public meeting. (e) PEDCO shall not make any public announcement with respect to a primary job creating capital improvement project for which Sales Tax Revenues or Land will be made available until after or contemporaneously with City Council's approval in public session of the terns and conditions under which Sales Tax Revenues or Land will be made available. 6. Parties Interested Herein Nothing in this Contract expressed or implied is intended or shall be construed to confer upon, or to give to, any person other than the City and PEDCO any right, remedy or claim under or by reason of this Contract or any covenant, condition or stipulation hereof, and all covenants, stipulations and agreements in this Contract contained by or on behalf of City or PEDCO shall be for the sole and exclusive benefit of the City and PEDCO. 7. Relationship The relationship between City and PEDCO is purely contractual. PEDCO is and acts hereunder as an independent contractor. PEDCO is not the agent of City and is not authorized, nor shall PEDCO have the power, to bind the City to any covenant, stipulation, contract, agreement, obligation or liability. This Contract does not create a partnership or joint venture between City and PEDCO. 8. Indemnification PEDCO shall be solely responsible for the acts and omissions of its officers, employees, agents and contractors, and shall indemnify, defend and save harmless City therefrom. PEDCO shall cause its employees to be covered under PEDCO's workers' compensation and liability insurance. PEDCO acknowledges and agrees that its officers and employees are not nor shall they be construed to be agents or employees of the City for any reason or purpose or covered under City's workers' compensation or liability insurance. PEDCO shall timely withhold and pay to the appropriate taxing entities all federal and state employee and employer income, unemployment, and social security taxes, and indemnify, defend and save City harmless therefrom. 9. Severabilitv In the event any provision of this Contract shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof. 10. Amendment This Contract may not be modified or amended except by written instrument executed by the City and PEDCO. 11. Binding Effect This Contract shall inure to the benefit of and be binding upon the parties hereto and their respective successors and assigns except that PEDCO may not assign this Contract or any benefit or duty hereunder without the prior written consent of the City. Executed in Pueblo, Colorado, on the day and year first above written. PUEBLO ECONOMIC DEVELOPMEN PUEBLO, A MUNICIPAL CORPORATION CORPORATION B n (> By C l President of the City Council v Attest: J�l )U Sec Attest: City Clerk Approved as to form: - AE;, C S;;t� City Attorney C/ '