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HomeMy WebLinkAbout11340RESOLUTION NO. 11340 A RESOLUTION APPROVING AMENDMENT NO. 1 TO THE PRE - ANNEXATION AGREEMENT BETWEEN THE CITY OF PUEBLO AND PUEBLO SPRINGS RANCH, LLC RELATING TO AN ESCROW FUND FOR PAYMENT OF CONSULTANTS ENGAGED TO ASSIST THE CITY WITH RESPECT TO THE PUEBLO SPRINGS RANCH ANNEXATION BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1 Amendment No. 1 to the March 24, 2008 Pre - Annexation Agreement between the City and Pueblo Springs Ranch, LLC relating to an escrow fund for payment of consultants engaged to assist the City with respect to the Pueblo Springs Ranch annexation, a copy of which is attached hereto, having been approved as to form by the City Attorney, is hereby approved. SECTION 2 The President of the City Council is authorized to executive Amendment No. 1 in the name of the City and the City Clerk is directed to affix the seal of the City thereto and attest same. SECTION 3 This Resolution shall become effective upon final approval and passage. INTRODUCED July 28, 2008 BY Vera Ortegon Councilperson APPROVE Lim PPI`81f I T' i I L'I'll F �1 E:) a� Background Paper for Proposed RESOLUTION AGENDA ITEM # DATE: July 28, 2008 DEPARTMENT: Law Department TITLE A RESOLUTION APPROVING AMENDMENT NO. 1 TO THE PRE - ANNEXATION AGREEMENT BETWEEN THE CITY OF PUEBLO AND PUEBLO SPRINGS RANCH, LLC RELATING TO AN ESCROW FUND FOR PAYMENT OF CONSULTANTS ENGAGED TO ASSIST THE CITY WITH RESPECT TO THE PUEBLO SPRINGS RANCH ANNEXATION ISSUE Should City Council approve Amendment No. 1? RECOMMENDATION Approve Amendment No. 1. BACKGROUND City and Pueblo Springs Ranch, LLC entered into a Pre - Annexation Agreement and Escrow Agreement whereby Pueblo Springs Ranch, LLC deposited $250,000 into an escrow fund for payment of consultants engaged by City to assist in the Pueblo Springs Ranch annexation. Pueblo Springs Ranch, LLC will pursuant to Amendment No. 1 deposit an additional $100,000 into the escrow fund for payment of consultants fees to prepare a fiscal impact analysis for Pueblo Springs Ranch annexation. FINANCIAL IMPACT No fiscal impact to City. AMENDMENT NO. 1 THIS AMENDMENT NO. 1 ( "Amendment') is entered into as of July 28, 2008, by and between the City of Pueblo ( "City ") and Pueblo Springs Ranch, LLC ('Company "), WITNESSETH: RECITALS A. City and Company entered into a Pre - Annexation Agreement dated as of March 24, 2008 (Pre- Annexation Agreement'). B. City, Company and Community Banks of Pueblo entered into an Escrow Agreement in conjunction with the Pre - Annexation Agreement ('Escrow Agreement'). C. City and Company desire to amend the Pre - Annexation Agreement to provide for an additional deposit of $100,000.00 for payment of consulting services relating to preparation of a fiscal impact analysis for Pueblo Springs Ranch annexation. NOW, THEREFORE, in consideration of the foregoing Recitals and mutual covenants contained herein, City and Company agree as follows: The Recitals set forth above are true and correct. 2. The escrow deposit described in paragraph 2 of the Pre - Annexation Agreement ('Deposit') shall be increased by $100,000.00 to $350,000.00. 3. Company shall on or before August 15, 2008 pay and deposit the additional $100,000.00 into the Pueblo Escrow Fund held by Community Banks of Colorado as Escrow Agent under the Escrow Agreement to be held, paid and disbursed by the Escrow Agent as provided in the Pre - Annexation Agreement and Escrow Agreement for professional consulting services and expenses for the preparation of a fiscal impact analysis for Pueblo Springs Ranch annexation. 4. The Pre - Annexation Agreement as modified by the Amendment No. 1 shall remain in effect and shall be binding upon and inure to the benefit of City and Company and their respective successors. Executed in Pueblo, Colorado and day and year first above written. CITY PUE Attest: By City Cl President of the City Council PUEBLO SPRINGS RANCH, LLC Attest: By Name: Title: 14 �✓�'ne, k CONSENT OF ESCROW AGENT Community Banks of Colorado as escrow agent for the Pueblo Escrow Fund under the Escrow Agreement described in Recital B of the foregoing Amendment No. 1 consents to the deposit of the additional $100,000.00 into the Pueblo Escrow Fund and agrees to hold, pay and disburse the additional $100,000.00 as part of the Pueblo Escrow Fund in accordance with the provisions of the Escrow Agreement. Executed at Pueblo, Colorado O / , 2008. l"I Title: JRADO ��J w G� -2- Title: �1�r