HomeMy WebLinkAbout11521RESOLUTION NO. 11521
A RESOLUTION APPROVING THE EXTENSION OF THE
ASSIGNMENT AND ASSUMPTION OF THE MANAGEMENT
AGREEMENT BETWEEN CITY OF PUEBLO AND NEK
ADVANCED SECURITIES GROUP, INC. AND AUTHORIZING
THE PRESIDENT OF THE CITY COUNCIL TO EXECUTE SAME
WHEREAS, the Pueblo City Council by Resolution No. 11353, approved the
assignment and assumption of the Management Agreement dated January 1, 1997 as
amended and modified by Extensions of Management Agreement dated November 25,
2002, July 12, 2004 and January 8, 2008 between Pueblo Motorsports, Inc. and NEK
Advanced Securities Group, Inc. ( "NEK"); and
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1.
The Extension Agreement extending the term and effective period of the
Management Agreement to April 1, 2009 between the City of Pueblo, a Municipal
Corporation, and NEK Advanced Securities Group, Inc., 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 hereby authorized to execute the Extension
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 3.
This Resolution shall become effective upon final approval and passage.
INTRODUCED: January 26, 2009
BY: Randy Thurston
Councilperson
APPROVED-f �2L
PRESIDENTof City Council
A STa). ay:
C Ilk :�Nlv
Background Paper for Proposed
RESOLUTION
DATE: JANUARY 26, 2009
AGENDA ITEM # 7
DEPARTMENT: PLANNING AND COMMUNITY DEVELOPMENT
JERRY M. PACHECO, DIRECTOR
TITLE
A RESOLUTION APPROVING THE EXTENSION OF THE ASSIGNMENT AND
ASSUMPTION OF THE MANAGEMENT AGREEMENT BETWEEN CITY OF PUEBLO
AND NEK ADVANCED SECURITIES GROUP, INC. AND AUTHORIZING THE
PRESIDENT OF THE CITY COUNCIL TO EXECUTE SAME
ISSUE
Shall City Council approve a Resolution extending the term and effective period of the
Management Agreement between the City of Pueblo, a Municipal Corporation, and NEK
Advanced Securities Group, Inc.?
RECOMMENDATION
Approval of the Resolution.
BACKGROUND
On July 28, 2008, City Council approved Resolution No. 11353, consenting to the
assignment and assumption of the Management Agreement between Pueblo
Motorsports, Inc. and NEK Advanced Securities Group, Inc. ( "NEK") for the Pueblo
Motorsports Park located on approximately 710 acres of the City's Honor Farm
property. This Resolution extends the term and effective period of the Management
Agreement to April 1, 2009. The terms of the Management Agreement assigned by
Pueblo Motorsports, Inc. to NEK will remain in force during the extended term of the
Management Agreement.
FINANCIAL IMPACT
•C7iT�
EXTENSION AGREEMENT
This Extension Agreement entered into as of January 26, 2009 between Pueblo, a Municipal
Corporation (the "City ") and NEK Advanced Securities Group, Inc., a New Mexico Corporation
( "NEK "), WITNESSETH
WHEREAS, City and Pueblo Motorsports, Inc. ( "PMI ") entered into a Management
Agreement dated January 1, 1997 with respect to a portion of the Honor Farm property and
subsequent Extension Agreements dated September 10, 2001, November 25, 2002, July 12, 2004,
January 8, 2007 and December 31, 2007 (collectively the "Management Agreement "); and
WHEREAS, by Resolution No. 11353 of the City Council of Pueblo passed and approved on
July 28, 2008, the City consented to the assignment and assumption of the Management Agreement,
as extended and amended, from PMI to NEK; and
WHEREAS, City and NEK are desirous of further extending the term of the Management
Agreement to April 1, 2009,
NOW THEREFORE, in consideration of the foregoing recitals and the mutual covenants
contained herein, City and NEK agree as follows:
1. The term and effective period of the Management Agreement is extended to April 1,
2009 upon the same covenants and provisions, except that the City may change and modify the
description of the Property subject to the Management Agreement upon thirty (30) days prior written
notice given to NEK.
2. Except as expressly modified by this Extension Agreement, the terms of the
Management Agreement, as heretofore modified by the prior Extension Agreements, shall remain in
full force and effect and be binding upon and inure to the benefit of the City and NEK and their
respective successors and assigns. Except as expressly modified, any obligations remaining to be
performed under the Management Agreement by either party are not waived or excused in any
manner, but shall be fully performed in accordance with the terms and conditions of the Management
Agreement as it existed prior to this Extension Agreement.
IN WITNESS WHEREOF, the parties have executed this Extension Agreement at Pueblo,
Colorado as of the day and year first above written.
[SEAL]
NEK ADVANCED SECURITIES GROUP,
INC.
By
Pre i nt
ATTEST: i bpaihA2
Secretary
` ;S. E A'L ]
PUEBLO, A CORPORATION
By
President of the City Council
ATTEST:
City M&k