HomeMy WebLinkAbout11672RESOLUTION NO. 11672
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 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 September 10, 2001, November 25, 2002, July 12,
2004, January 8, 2007, and December 31, 2007, (collectively the "Management Agreement'),
between Pueblo Motorsports, Inc. and NEK Advanced Securities Group, Inc. (`NEK "); and
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that:
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The Extension Agreement extending the term and effective period of the Management
Agreement to October 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.
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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.
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This Resolution shall become effective upon final approval and passage.
A77TSTDD SY:
CITY CLERK
INTRODUCED: August 10, 2009
BY: Michael Occhiato
} C�OUNCILPERSON
APPR D' } �-
PRESIDENTai City Council
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Background Paper for Proposed
RESOLUTION
AGENDA ITEM # M — 2
DATE: August 10, 2009
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 THE CITY OF
PUEBLO AND NEK ADVANCED SECURITIES GROUP, INC. AND
AUTHORIZING THE PRESIDENT OF CITY COUNCIL TO EXECUTE SAME
ISSUE
Should 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 October 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
None.
EXTENSION AGREEMENT
This Extension Agreement entered into as of August 10, 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, by Resolution No, 11551 of the City Council of Pueblo passed and approved on
March 23, 2009, the City consented to extend the Management Agreement to June 1, 2009; and
WHEREAS, City and NEK are desirous of further extending the term of the Management
Agreement to October 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 October 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 . - M� / A�= –
�n, Presid nntt
ATTEST: f/{'/ 7gtA- /v L
Secretary
[SEAL]
PUEBLO, A MUNICIPAL CORPORATION
President of the City CAmcil
ATTEST: r oA
City Jerk
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