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HomeMy WebLinkAbout11446RESOLUTION NO. 11446 A RESOLUTION AUTHORIZING AND APPROVING AN AGREEMENT BY AND AMONG THE CITY OF PUEBLO, PEDCO FOUNDATION, INC. AND PROFESSIONAL BULL RIDERS, INC. RELATING TO THE PROFESSIONAL BULL RIDERS, INC. JOB CREATING CAPITAL IMPROVEMENT PROJECT AND EASEMENT AGREEMENTS, MEMORANDUM OF RIGHT OF FIRST REFUSAL, AND ASSIGNMENT ASSOCIATED THEREWITH; AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL TO EXECUTE SAME; AND AUTHORIZING THE TRANSFER OF $139,816 LESS CHARGES FOR INCOMPLETE AND FINAL WORK TO PROFESSIONAL BULL RIDERS, INC. FROM FUNDS ALLOCATED FOR THE CONSTRUCTION OF A PARKING STRUCTURE BY RESOLUTION NO. 10512 WHEREAS, the City Council by Resolution No. 10487 approved the Professional Bull Riders, Inc. (the "PBR ") job creating capital improvement project, and WHEREAS, the City Council by Resolution No. 10555 approved a Parking Agreement between the City and PBR with respect to the use of parking spaces to be located in a proposed parking garage adjacent to the PBR building, and WHEREAS, a parking area was installed adjacent to the PBR building instead of a parking garage, and the lot upon which PBR's building is located was further subdivided to accommodate the location and configuration of the PBR building ( "Changes "), and WHEREAS, the Changes in parking area and subdivision necessitates modifications to the approved documents and the granting of additional easements, and WHEREAS, PBR, the City and PEDCO Foundation ( "PEDCO ") have agreed to modify the approved documents to provide for such Changes. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1 The following documents (the "Documents "), copies of which are attached hereto, having been approved as to form by the City Attorney, are hereby authorized and approved: (a) Agreement dated as of October 16, 2008 by and among the City, PEDCO and PBR. (b) Easement Agreement dated as of October 16, 2008 by and between PEDCO and the City ( PEDCO to City). (c) Easement Agreement dated as of October 16, 2008 by and between the City and PEDCO (City to PEDCO). (d) Memorandum of Right of First Refusal dated as of October 16, 2008 between City and PBR. (e) Assignment dated as of October 16, 2008 by and between PEDCO and City SECTION 2 The President or Vice President of the City Council is authorized to execute and deliver the Documents 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 Funds in the amount of $139,816 less charges for incomplete and final work representing the balance of $2,000,000 authorized and transferred by Resolution No. 10512 for payment of all soft costs and hard costs incurred in the construction of the proposed parking structure shall be transferred and paid to PBR for partial cost overruns incurred by PBR in constructing the PBR building. cFrTinN d This Resolution shall become effective upon final approval and passage. BY Ray Aquilera Councilperson PRt %rtw unri, ATTEs r) a { C -- INTRODUCED October 14, 2008 D O ED A e Background Paper for Proposed RESOLUTION AGENDA ITEM # 38 DATE: October 14, 2008 DEPARTMENT: Law Department 1111111111144 A RESOLUTION AUTHORIZING AND APPROVING AN AGREEMENT BY AND AMONG THE CITY OF PUEBLO, PEDCO FOUNDATION, INC. AND PROFESSIONAL BULL RIDERS, INC. RELATING TO THE PROFESSIONAL BULL RIDERS, INC. JOB CREATING CAPITAL IMPROVEMENT PROJECT AND EASEMENT AGREEMENTS, MEMORANDUM OF RIGHT OF FIRST REFUSAL, AND ASSIGNMENT ASSOCIATED THEREWITH; AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL TO EXECUTE SAME; AND AUTHORIZING THE TRANSFER OF $139,816 LESS CHARGES FOR INCOMPLETE AND FINAL WORK TO PROFESSIONAL BULL RIDERS, INC. FROM FUNDS ALLOCATED FOR THE CONSTRUCTION OF A PARKING STRUCTURE BY RESOLUTION NO. 10512 ISSUE Should City Council approve and authorize additional documents relating to the Professional Bull Riders, Inc. job creating capital improvement project? RECOMMENDATION Both PEDCO and City staff recommend approval. BACKGROUND The PBR building and adjacent parking area have been completed. Due to the change in constructing a parking area instead of parking garage and reconfiguration and resubdivision of the lot upon which the PBR building was constructed, certain additional documents are necessary to complete the PBR transaction. These documents are: 1. A three -party agreement between City, PEDCO and PBR which modifies the November 14, 2005 Lease between PEDCO and PBR ( "Lease ") and the November 14, 2005 Parking Agreement between City and PBR ( "Parking Agreement ") to provide for the switch from the parking garage to the parking facility, easements on City -owned property, and easements on PEDCO -owned property, all consistent with the original intent of the terms and conditions of the Lease and Parking Agreement. 2. Memorandum of Right of First Refusal for the parking area instead of parking garage which was authorized in the Parking Agreement. 3. Assignment from PEDCO to City of its right to enforce the terms and conditions of the Special Warranty Deed With Right of Entry for Conditions Broken (the "Deed ") from PEDCO to PBR. 4. Easement Agreements between PEDCO and City. The Lease for the land and building between PEDCO and PBR gave to PBR the option to acquire the second, third and fourth floors of the building which has been incorporated into a condominium project as Unit 2. PBR will upon closing schedule for October 16, 2008 acquire Unit 2 pursuant to the Deed. The Deed provides that if PBR fails to meet its employment commitment or pay additional compensation in an amount equal to $330.68 per month for each full -time employee not provided by PBR on the building or in the City of Pueblo, PEDCO may enforce their right to terminate the Deed and enter possession of the property as reserved to PEDCO in the Deed. PEDCO has assigned its right to enforce the terms and conditions of the Deed to the City. PBR's employment commitment is: No. of Period Employees 10/16/08 to 10/15/11 (3 years) 76 10/16/11 to 10/15/18 (3 years) 180 FINANCIAL IMPACT No additional funds are being made available for this project.