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HomeMy WebLinkAbout11700RESOLUTION NO. 11700 A RESOLUTION APPROVING A CONTRACT TO BUY AND SELL REAL ESTATE BETWEEN CITY OF PUEBLO, A MUNICIPAL CORPORATION, AND PUEBLO SUBURBAN DEVELOPMENT, LLC RELATING TO THE ACQUISITION OF REAL PROPERTY FOR DEVELOPMENT OF AN INDUSTRIAL PARK TO BE MADE AVAILABLE FOR JOB CREATING CAPITAL IMPROVEMENT PROJECTS, AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL TO EXECUTE SAME, AND TRANSFERRING $4,000,000.00 FROM THE 1992 -2011 SALES AND USE TAX CAPITAL IMPROVEMENT PROJECTS FUND FOR SUCH PURPOSE BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: SFrTinN 1 The City Council finds and determines that the expenditure of $4,000,000.00 for the acquisition of 500 acres of real property for development of an industrial park to be made available for job creating capital improvement projects meets and complies with the intent and purpose of the criteria and standards established by Ordinance No. 6381 and will create employment opportunities justifying the expenditure of public funds. SECTION 2 The Contract To Buy And Sell Real Estate dated as of September 14, 2009 between the City of Pueblo and Pueblo Suburban Development, LLC ( "Contract'), 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 and deliver in the name of the City the Contract, together with the Deed of Trust and Promissory Note described therein. SECTION 3 Funds in an amount of $4,000,000.00 are hereby transferred, expended and pledged out of the 199282011 Sales and Use Tax Capital Improvement Projects Fund for the sole purpose of paying the $4,000,000.00 purchase price for 500 acres of real property. The funds hereby pledged and authorized to be transferred and expended shall be released and paid by the Director of Finance to Pueblo Suburban Development, LLC in accordance with the terms and covenants of the Contract and Promissory Note. SECTION 4 The officers of the City are directed and authorized to perform any and all acts consistent with the intent of this Resolution and attached Contract to effectuate the transaction described therein. The City Attorney is authorized to execute on behalf of the City all closing documents necessary and required to purchase the real property. SECTION 5 This Resolution shall become effective upon final approval and passage. A77TSTDD SY: CITY CLERK INTRODUCED: September 14, 2009 BY: Randy Thurston } C � OUNCILPERSON APPR 0' } �- PRESIDENTaf Cfty Council [ D E ED Background Paper for Proposed ORDINANCE AGENDA ITEM # R -1 DATE: September 14, 2009 DEPARTMENT: Law Department TITLE A RESOLUTION APPROVING A CONTRACT TO BUY AND SELL REAL ESTATE BETWEEN CITY OF PUEBLO, A MUNICIPAL CORPORATION, AND PUEBLO SUBURBAN DEVELOPMENT, LLC RELATING TO THE ACQUISITION OF REAL PROPERTY FOR DEVELOPMENT OF AN INDUSTRIAL PARK TO BE MADE AVAILABLE FOR JOB CREATING CAPITAL IMPROVEMENT PROJECTS, AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL TO EXECUTE SAME, AND TRANSFERRING $4,000,000.00 FROM THE 1992 -2011 SALES AND USE TAX CAPITAL IMPROVEMENT PROJECTS FUND FOR SUCH PURPOSE ISSUE Should City Council approve the purchase of approximately 500 acres of real property for a proposed industrial park? Staff recommends approval. BACKGROUND City will purchase from Pueblo Suburban Development, LLC approximately 500 acres of land north of Vestas Towers America, Inc. (the "Property ") for a purchase price of $8,000 per acre in accordance with the terms and conditions of the Contract To Buy And Sell Real Estate. The closing is to occur December 18, 2009. The $4 million purchase price will be paid as follows: $40,000 upon execution of the Contract, $2 million at closing; $1 million upon first anniversary of closing, and the balance on the second anniversary of closing. The balance of purchase price without interest after closing (approximately $2 million) will be represented by City's promissory note secured by a deed of trust on the Property which provides for partial releases from the deed of trust for portions of the Property sold and transferred by the City. City's obligation to purchase is subject to City's approval of title and testing, including environmental assessment. To the extent TIF funds are available, City will cause Greenhorn Drive to be extended south to the north line of the Property. City will grant an easement along the north 25 feet of the Property for a water main. City Council finds and determines that this project meets and complies with the intent and purpose of the criteria and standards established by Ordinance No. 6381 and will create employment opportunities justifying the expenditure of public funds from the 1992 -2011 Sales and Use Tax Capital Improvement Projects Fund. FINANCIAL IMPACT $4 million will be transferred, expended and pledged for the purchase of the real property out of the 1992 -2011 Sales and Use Tax Capital Improvement Projects Fund. CONTRACT TO BUY AND SELL REAL ESTATE THIS CONTRACT TO BUY AND SELL REAL ESTATE ( "Contract') is made and entered into as of September 14, 2009 (the "Effective Date ") by and between Pueblo Suburban Development, LLC, a Colorado limited liability company (the "Seller ") and the City of Pueblo, a municipal corporation (the "Buyer "). Buyer and Seller are sometimes referred to herein as a "Party" and, collectively, as the "Parties." Recitals A. Seller is the owner of approximately 698 acres of unimproved real property in Pueblo County, Colorado. Seller is desirous of selling the southerly portion of its property lying immediately north of Vestas Towers America, Inc. ( "Vestas ") consisting of approximately 500 acres to be located by mutual agreement of Seller and Buyer (the "Land "). The legal description of the Land will be determined by Survey (as defined in Paragraph 3(b) below) and attached hereto as Exhibit A. B. Buyer is desirous of purchasing the Property (as defined in Paragraph 1 below) from Seller. C. Seller is willing to sell the Property to Buyer upon the terms and conditions hereinafter set forth. Agreement NOW, THEREFORE, in consideration of the foregoing Recitals and the mutual covenants contained herein, Seller and Buyer agree as follows: 1. Sale and Purchase Seller agrees to sell and Buyer agrees to purchase the Land, together with all tenements, hereditaments, appurtenances, interests, rights, benefits, easements and improvements thereunto belong or appertaining (collectively, the "Property"), on the terms and conditions set forth in this Contract. 2. Purchase Price and Terms The purchase price for the Property shall be $8,000.00 per acre, payable as follows: (a) $40,000.00 as Earnest Money payable upon execution hereof; (b) $2,000,000.00 on Closing Date (as defined in Paragraph 5 below); (c) Buyer executing and delivering to Seller on Closing Date its promissory note payable to Seller in an amount equal to the balance of the Purchase Price ( "Promissory Note "), secured by a fi t deed of trust encumbering the Property which shall provide that Seller shall grant parti el s from the deed of trust upon written request by Buyer for any portion of the Property 1 sold and transferred by Buyer ( "Deed of Trust "). The principal of the Promissory Note shall be payable without interest in two installments as follows: $1,000,000.00 upon the first anniversary of the Closing Date and the balance thereof upon the second anniversary of the Closing Date. The form and content of the Deed of Trust and Promissory Note shall be mutually agreed upon by Buyer and Seller. (d) All amounts paid by Buyer shall be cash, electronic transfer funds, certified check, or cashier's check. The Earnest Money shall be credited against the Purchase Price at Closing, provided, that if the sale and purchase contemplated herein does not close for any reason other than a default by Buyer hereunder, the Earnest Money shall be returned by Seller to Buyer free and clear from any and all claims Seller may have. 3. Evidence of Title (a) Title Commitment and Policy Within twenty (20) days after Seller's receipt of the Survey, Seller shall order and obtain, at Seller's expense, and deliver to Buyer a current commitment for extended coverage title insurance in the amount of the Purchase Price, together with legible copies of all documents listed as exceptions therein, and a current certificate of taxes due with respect to the Property, from Land Title Guaranty Company (the "Title Company "), on the current standard form of extended ALTA Owners Policy (collectively, the "Title Commitment"). The Title Company shall promptly provide copies of any amendments or modifications of the Title Commitment to Buyer. At Closing or as soon as reasonably practicable after Closing, the Title Company shall issue and deliver to Buyer the owner's title insurance policy referred to above (the "Title Policy "), issued by the Title Company insuring Buyer's title to the Property consistent with the Title Commitment, providing "gap" coverage, deleting the standard exceptions, endorsing over arbitration and creditors' rights exceptions, if necessary, and subject only to taxes and assessments for the year of Closing and subsequent years, and the other matters approved by Buyer in accordance with subparagraph (c) below and any encumbrances upon the Property caused by Buyer (the "Permitted Exceptions "). At Closing, Seller shall pay the premium for the Title Policy. Buyer may obtain such other endorsements to the Title Policy as Buyer desires, at the expense of Buyer, except for endorsements obtained at Seller's cost, as provided in subparagraph (b) below. Seller shall provide such affidavits or certificates as may be required by the Title Company to remove all liens, including, without limitation, mechanics' or materialmen's liens, as exceptions to the Title Policy. (b) Sury ev . Within twenty (20) days of the Effective Date, Seller shall obtain and deliver, at Seller's expense, to the Title Company and Buyer a boundary and improvements survey plat containing the description of the Land and location of all improvements and encroachments thereon, including but not limited to any improvements, fence locations and easements (whether visible or recorded), rights of way (whether visible or recorded) and roadways adjacent to the Land, in a form sufficient to enable the Title Company to issue the Title Policy in compliance with this Para p 3, ertified to Buyer, Seller, and the Title Company (the "Survey "). 2 (c) Title Defects and Objections Buyer will have twenty (20) days from receipt of the Title Commitment and Survey to notify Seller in writing of any objections to any items identified in the Title Commitment or on the Survey, or of any other objections as to title matters. Seller will have until fifteen (15) days after receipt of Buyer's written objections ( "Seller's Cure Period ") to elect, at its reasonable discretion, to cure all items to which Buyer has objected, cause such items to be modified in a manner which is reasonably satisfactory to Buyer or to advise Buyer that Seller does not intend to cure such items. Alternatively, within the Seller's Cure Period, Seller at Seller's cost may elect to obtain one or more endorsements to the Title Commitment, in a form reasonably acceptable to Buyer, providing title insurance protection with regard to any objections raised by Buyer. If Seller fails to cure to the satisfaction of Buyer any written objection by Buyer of which Seller has been given notice in accordance with this subparagraph (c), or elects not to cure, then Buyer may elect, as its sole remedy to either (i) waive the objection by written notice to Seller within ten (10) days after expiration of Seller's Cure Period and proceed to Closing as herein provided, or (ii) terminate this Contract by written notice to Seller, in which case the Earnest Money will be promptly returned to Buyer and the Parties will be released from all obligations hereunder, except for any obligations that expressly survive the termination of this Contract. Buyer will have five (5) business days after receipt of any amendment or update to the Title Commitment or Survey to object to any changes in the same fashion as objections to the initial Title Commitment or Survey under this subparagraph (c). Anything above to the contrary notwithstanding, Seller shall be obligated to, and shall cause all financing, mortgage, judgment and tax liens to be removed as title exceptions prior to or concurrently with Closing. 4. hisnection Commencing on the Effective Date and continuing during the term of this Contract until the first to occur of the Closing Date or termination of this Contract, Buyer, its agents and employees, shall have the right to enter and access the Property at reasonable times for the purpose of making such inspections, studies, tests and investigations ( "Testing ") as Buyer may elect and which it deems necessary to determine the suitability of the Property for Buyer's intended use. All such Testing shall be performed by Buyer or its agents or employees at Buyer's sole cost and expense. Buyer shall keep all Testing results confidential and shall deliver copies of all Testing results to Seller. Buyer shall indemnify, defend and hold Seller and the Property harmless from and against any and all costs, liabilities, claims, demands, actions and expenses arising from or in connection with such Testing and, in the event Buyer does not close on the purchase of the Property, Buyer shall repair any damage to the Property or improvements thereon caused by such Testing. This indemnification shall not be deemed to apply to costs, liabilities, claims, demands, actions or expenses arising from Seller's negligent acts or omissions or any pre - existing condition (including, without limitation, environmental conditions) within the Property. If Buyer is not satisfied with the physical condition of the Property, Buyer may terminate this Contract by written notice given to Seller at least five (5) days prior to Closing Date. 5. Date of Closing The closing of Buyer's purchase of the Property ( "Closing ") shall take place on or before December 18, 2009. The date of Closing ( "Closing Date ") and the hour and place of Closing shall be mutually agreed upon by the Parties, but in no event later than December 18, 2V 6. Transfer of Title Subject to payment of the Purchase Price as provided in Paragraph 2 and compliance by Buyer with the other terms and provisions hereof, Seller shall execute and deliver to Buyer on Closing Date a Special Warranty Deed conveying marketable fee simple title to the Property to Buyer free of financing, mortgage, judgment and tax liens, subject only to the Permitted Exceptions. The form and content of the Special Warranty Deed shall be mutually agreed upon by Buyer and Seller. 7. Closing Costs. Documents and Services Buyer and Seller shall sign and complete all customary or required documents at or before Closing. Fees for real estate closing services, if any, shall be paid at Closing, one -half by Buyer and one -half by Seller. 8. Prorations General taxes and assessments for the year of Closing, if any (which shall be based on the taxes for the calendar year immediately preceding Closing), water, sewer, utility charges and other usual and customary items shall be prorated between Seller and Buyer as of the Closing Date. 9. Possession Possession of the Property shall be delivered to Buyer by Seller on Closing Date. 10. Time of Essence/Default and Remedies Time is of the essence hereof. If any obligation is not performed there shall be the following remedies: (a) If Buyer is in Default In the event Buyer defaults in the performance of its obligations hereunder, Seller shall have the right to (i) terminate this Contract by written notice to Buyer and retain the Earnest Money as liquidated damages, or (ii) treat this Contract as being in full force and affect and to obtain specific performance, but not any damages. (b) If Seller is in Default In the event Seller defaults in the performance of its obligations hereunder, Buyer shall have the right to (i) terminate this Contract by written notice to Seller and obtain the return of the Earnest Money, or (ii) treat this Contract as being in full force and effect and to obtain specific performance, but not any damages. (c) Costs and Attorneys' Fees Anything to the contrary herein notwithstanding, in the event of any action or litigation arising out of this Contract, the court shall award to the prevailing party all reasonable costs and expenses, including reasonable attorneys' fees. Exclusive venue and jurisdiction for any such litigation shall be in the District Court in and for Pueblo County, Colorado. The provisions of this subparagraph (c) shall survive Closing or termination of this Contract. 11. Representations and Warranties of Seller The Seller represents and warrants to Buyer as follows: (a) Seller has full power, capacity and authority to execute and deliver this CM , all other documents required to be executed and delivered by Seller under this Contract A and to perform its obligations hereunder. (b) This Contract has been, duly authorized, executed and delivered by Seller and constitutes the legal, valid and binding obligation of Seller, enforceable against Seller in accordance with its terms. (c) Seller is not a party to any judicial, administrative, arbitration or other similar proceedings relating in any manner to the Property or to Seller's interest therein or that may detrimentally affect Seller's ability to perform its obligations under this Contract or the ability of persons who acquire portions of the Property to develop, own or operate the Property. Seller has not received notice of (and to Seller's knowledge there is no basis for) any pending or threatened claims, actions, suits or other proceedings of the nature described in the immediately preceding sentence, nor are any such claims, actions, suits or other proceedings contemplated by Seller. (d) To Seller's knowledge, there are no violations of laws, rules, regulations, ordinances, codes, covenants, conditions, restrictions, instructions or agreements applicable to the Property. Seller has not received notice from any governmental or other agency or any other person with respect to any such violations concerning the Property. (e) Other than this Contract and the Option dated June 15, 2009 between the Parties, there are no contracts or other obligations outstanding for the sale, lease or transfer of all or any part of the Property. (f) None of the Property is included in the U.S. Department of Agriculture Conservation Reserve Program. (g) There is no default, nor has any event occurred which, with the passage of time, the giving of notice or both, would constitute a default under any agreement, contract, mortgage, deed of trust or other instrument which relates to Seller or the Property or which affects the Property in any manner. (h) To Seller's knowledge (i) the Property is and at all time has been in compliance with all applicable state and federal environmental laws, regulations, ordinances, rules and orders (collectively, "Environmental Laws "); (ii) there are no pending or threatened judicial or administrative proceedings ofany kind with respect to the Property alleging the violation or potential violation of any Environmental Law nor are there any pending or threatened investigations of any matters relating to any Environmental Laws with respect to the Property; (iii) there has been no release or threatened release of any hazardous, toxic or otherwise regulated substance, waste, contaminant or material (collectively "Hazardous Materials "), as such terms are defined in any applicable Environmental Law, on, in or at the Property, or any part thereof; (iv) no portion of the Property has been used as a dump site, a storage site for solid wastes or the location of above ground or underground fuel or storage tanks; and (v) no Hazardous Materials are currently present on or have t any f e been stored or used on the Property, except for fertilizers and pesticides. Seller shall indemnify and hold Buyer harmless and defend Buyer from any loss, liability or expense, including reasonable attorneys' fees, incurred by Buyer, or any claim made against Buyer, by reason of Seller's breach of any of the foregoing representations or warranties. 12. Representations and Warranties of Buyc Buyer represents, warrants and covenants as follows: (a) Buyer has full power, capacity and authority to execute and deliver this Contract and all other documents required to be executed and delivered by Buyer under this Contract and to perform its obligations hereunder. (b) This Contract has been duly authorized, executed and delivered by Buyer and constitutes the legal, valid and binding obligation of Buyer, enforceable against Buyer in accordance with its terms. (c) To the extent sufficient funds are made available therefor through the use of tax increment financing derived from urban renewal plans for the Property or portion thereof, Buyer will cause Greenhorn Drive to be extended south along the existing right of way to north line of the Property. (d) Buyer will not by the extension of Greenhorn Drive impair Seller's accessibility to the proposed water line to Seller's approximately 179 acres of land remaining after the sale of the Property to Buyer ("Seller's Other Land"). (e) Buyer will grant to Seller or its assigns a twenty-five (25) foot easement for installation, maintenance, repair and replacement of a water main within any public utility easement or roadway on the Property, and, if required by Seller or its assigns, along the north twenty-five (25) feet of the Property. (f) If Seller is not in default hereunder, Buyer's staff will expedite the processing of Seller's petition to annex Seller's Other Land. Buyer shall indemnify and hold Seller harmless from any loss, liability or expense, including reasonable attorneys' fees, incurred by Seller, or any claim made against Seller, by reason of Buyer's breach of the foregoing representations or warranties. 13. Seller Covenants Commencing on the Effective Date and until the first to occur of Closing or termination of this Contract, Seller shall not (a) lease, sell, convey or further encumber any portion of the Property, (b) consent to any zoning or other change affecting the use of the Property, except for those requested or approved by Buyer, or (c) cause any other changes which affect the condition of Seller's title to the Property or otherwise adversely impact the condition of the Property or Buyer's intended use thereof. Notices Any notice required or permitted to be given or delivered under this 6 Contract shall be in writing and shall be given by personal delivery, or by the United States Postal Service, by registered or certified mail, postage prepaid, or reputable national overnight courier service: (a) If to Buyer, addressed to: City Manager City of Pueblo 1 City Hall Place Pueblo, Colorado 81003 Telephone No. (719)553 -2655 with a copy to: Thomas E. Jagger, Esq. 503 N. Main, Suite 127 Pueblo, Colorado 81003 Telephone No. (719)545 -4412 (b) If to Seller, addressed to: Pueblo Suburban Development, LLC Albert W. Vanzeyst 26033 Estates Ridge Drive Sorrento, Florida 32776 Telephone No. (407)620 -3731 with a copy to: Nicholas G. Muller, Esq. 475 17th Street, Suite 940 Denver, Colorado 80202 Telephone No. (303)297 -1970 or to such other address or person as any party may from time to time specify in a writing delivered to the other party in the manner provided in this paragraph. Any notice shall be deemed delivered on the day on which personal delivery is effected or three (3) days after deposit in the mail in the case of registered or certified mail, and one (1) business day in the case of overnight courier. 15. Assignment This Contract and the rights granted to Buyer hereunder may be assigned by Buyer with Seller's consent, provided, such consent shall not be unreasonably withheld, conditioned or delayed. Except as so restricted, this Contract shall inure to the benefit of and be binding upon the Parties and their respective successors and assigns. In no event will Buyer assign its obligation to pay Seller under the Promissory Note provided for hereunder, and Buyer may prepay such Promissory Note without penalty at any time. 16. Modification No subsequent modification of any of the terms of this Contract shall be lid or ' inding upon the Parties or enforceable unless made in writing and signed by the Parties. 7 17. Entire Contract This Contract constitutes the entire contract and agreement between the Parties relating to the subject matter hereof, and any prior statements, representations or agreements pertaining thereto, whether oral or written, have been merged and integrated into this Contract. 18. Captions The captions in this Contract are inserted for convenience of reference only and in no way define, describe or limit the scope or intent of this Contract or any of the provisions hereof. 19. Validi . If any provision of this Contract shall be held to be invalid or unenforceable, the same shall not affect in any respect whatsoever the validity or enforceability of the remainder of this Contract. 20. Broker Buyer and Seller represent and warrant to the other than no broker or finder has been engaged by such Parry in connection with this transaction. Seller agrees to indemnify, defend and hold Buyer harmless from and against any and all claims, loss, liability, costs and expenses (including reasonable attorneys' fees), resulting from any claims that may be made against Buyer by any broker or other person claiming a commission, fee or other compensation by reason of the transaction contemplated hereby if the same shall arise by, through or on account of Seller. Buyer agrees to indemnify, defend and hold Seller harmless from and against any and all claims, loss, liability, costs and expenses (including reasonable attorneys' fees), resulting from any claims that may be made against Seller by any broker or other person claiming a commission, fee or other compensation by reason of the transaction contemplated hereby if the same shall arise by, through or on account of Buyer. 21. Applicable Law This Contract will be construed and enforced in accordance with the laws of the State of Colorado (without giving effect to its choice of law principles). 22. Interoretation Whenever the context so requires, the singular number shall include the plural and the plural the singular, and the use of any gender shall include all genders. 23. Survival of Representations The representations, warranties, covenants and agreements of Buyer and Seller in this Contract are and shall be construed to be covenants running with the Property, shall survive the Closing of the transaction contemplated hereby and recordation of the Special Warranty Deed, may be enforced by either Buyer or Seller after Closing Date, and shall not be merged or be deemed to be merged into the Special Warranty Deed. 24. Third Parties Buyer and Seller and their respective successors and permitted assigns are the only parties to this Contract and are the only parties entitled to enforce this Contract. Nothing contained in this Contract nor any provision hereof is intended to give or shall be construed to give or confer, directly or indirectly, or otherwise, upon any third party any right, remedy or benefit hereunder r3 25. Counterparts This Contract maybe executed in multiple counterparts, which taken together shall be deemed one original. 26. Exclusivitv In consideration of the time and resources which the Buyer will devote to the transactions contemplated herein, Seller agrees that until Closing or the earlier termination of this Contract, Seller will not, directly or indirectly, solicit, initiate or enter into discussions or transactions with, or encourage, or provide any information to, any individual, entity or group (other than to Buyer and Buyer's designees) concerning any sale or lease of the Property or any similar transaction or alternative. The provisions of this Paragraph shall not be construed to prohibit Seller or Buyer from discussing the transaction contemplated herein with their attorneys or other consultants. 27. Option The Option executed June 15, 2009 between the Parties shall terminate and be cancelled on Closing Date and each party shall be released from all obligations thereunder. IN WITNESS WHEREOF, the parties have signed this Contract as of the Effective Date. BUYER THE CITY OF PUEBLO, A MUNICIPAL CORPORATION By :Gocy President the City Council 6 ' Attest: City Wrk SELLER PUEBLO SUBURBAN DEVELOPMENT, A COLORADO LIMITED COMPANY /� / Name: Albert W. Vanzeyst Title: Manager and Member Approved as to form: City Attome 0 RELEASE AND SETTLEMENT AGREEMENT THIS RELEASE AND SETTLEMENT AGREEMENT (this "Agreement ") is entered into this / x b' day of , 2011, by and between PUEBLO SUBURBAN DEVELOPMENT, LLC, a Colorado limited liability company (herein after referred to as "PSD ") and the City of Pueblo, a Municipal Corporation (hereinafter referred to as "City") for the purpose of settling all claims, controversies and disputes between the parties. PSD and City may each be referred to herein simply as a "party" or collectively as the "parties." RECITALS WHEREAS, a dispute has arisen with regard to a certain Contract to Buy and Sell Real Estate dated September 14, 2009, as amended (hereinafter the "Contract ") entered into by the parties, WHEREAS, City had terminated the Contract and filed suit in the Pueblo County District Court, Case No. 11CV410, for return of its earnest money pursuant to the Contract (hereinafter referred to as the "Civil Action "); and WHEREAS, each party, without admitting the merits of any claims of the other party, desires to compromise and settle any and all obligations and disputes between them in any way relating to, or arising from the Contract and the Civil Action. NOW, THEREFORE, in consideration of the foregoing Recitals, the compromise and settlement of claims set forth herein, and the payment to be made as hereinafter set forth, the parties agree as follows. TERMS AND CONDITIONS OF MUTUAL RELEASE AND SETTLEMENT 1 PSD will, within twenty -one (21) days of the date of this Agreement, pay the sum of U.S. $30,000.00 to City in good funds. Good funds shall mean irrevocable wire transfer to City's bank, certified bank check or bank cashier's check. 2 PSD hereby releases and forever discharges City and City's officers, agents, employees, attorneys, assigns, and successors from any and all actions, claims, counterclaims, cross - claims, and demands of whatever nature now existing, whether known or unknown, or which may arise hereafter, relating to any acts or omissions of City and City's officers, agents, employees and attorneys, arising from or related in any way to the Contract and the Civil Action. 3 In consideration of the foregoing and upon receipt of the payment described in paragraph 1, including honor and payment of any bank instrument tendered by PSD, City shall dismiss with prejudice the Civil Action currently pending m the Pueblo County District Court, Case No 2011CV410 4 Upon receipt of the payment described in paragraph 1, including honor and payment of any bank instrument tendered by PSD, City releases and forever discharges PSD and PSD's officers, agents, employees, attorneys, assigns, and successors from any and all actions, claims, counterclaims, cross - claims, and demands of whatever nature now existing, whether known or unknown, or which may arise hereafter, relating to any acts or omissions of PSD and PSD's officers, agents, employees and attorneys, arising from or related in any way to the Contract and the Civil Action. 5 The parties represent and warrant that no other person or entity has any interest in the claims, demands, obligations or causes of actions released by each under this Agreement. The parties further warrant that no promise or inducement has been offered except as set forth herein and that all agreements and understandings between the parties are expressed herein and that this Agreement was entered into and executed without reliance on any statement or representation by the other or the other's officers, agents, employees, and attorneys. 6 The parties represent and warrant that each has investigated the facts pertaining to this settlement and this Agreement, and all matters pertaming thereto, to the full extent that party deems necessary 7 This Agreement constitutes and comprises the entire agreement between the parties with respect to the subject matter hereof. It supersedes all prior and contemporaneous oral and/or written negotiations, agreements, and/or discussions. It may be amended only by an agreement in writing, signed by the parties. 8 Each party hereto has participated in, and m any construction to be made of this Agreement shall be deemed to have equally participated in the negotiation, drafting, and execution of this Agreement and each of its parts. 9 The parties acknowledge and understand that a portion of the consideration given for this Agreement is for the full and final release of any and all claims, demands and/or causes of action which may have occurred in the past and are not yet known. The parties agree to voluntarily and knowingly assume the risk of any mistake of fact, either mutual or unilateral, with respect to said claims, demands and/or causes of action and shall not, under any circumstances, seek to present such claims on their behalf against the other 10 PSD agrees to indemnify, defend and hold City and City's officers, agents, employees, attorneys, assigns and successors harmless from and against all actions, claims, counterclaims, cross - claims and demands of whatever nature, now existing, whether known or unknown, or which may arise hereafter which may be asserted by third parties, and their successors and assigns, arising from or related to the Contract. 11 The terms herein are contractual and not mere recitals. The payments, obligations and agreements provided herein are the entire and sole consideration for this Agreement. The parties -2- shall be responsible for their own respective attorney fees, expenses and costs relative to the Civil Action and this Agreement. Should City need to enforce the terms of this Agreement, City shall be entitled to its reasonable attorneys' fees and costs. 12 As additional consideration for the compromise and settlement of claims contained herein and the payments to be made hereunder, the parties agree that they each waive any right to trial by jury in any litigation seeking enforcement of this Agreement, arising under this Agreement, or in any way connected to this Agreement. 13 The undersigned certify that they have read this entire Release and Settlement Agreement, have consulted with their attorney, or have had the opportunity to consult with their attorneys concerning its terms, fully understand, approve and agree to its terms, and voluntanly enter into the Agreement. 14 This Agreement shall be governed by and interpreted under the laws of the State of Colorado Venue and junsdiction for any action arising out of or relating to this Agreement shall he exclusively in the District Court, Pueblo County, Colorado 15 This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, and all of which, when taken together, constitute one and the same Agreement. The signature of any party's representative to any counterpart shall be deemed a signature to and may be appended to, any other counterpart. A faxed signature of a party on a signature page of a counterpart of this Agreement shall be as valid and binding as the original ink impression of such party 16 Each of the signatories executing this Agreement in a representative capacity on behalf of any entity hereby certifies that he or she has actual authonty to so execute on behalf of his or her principals Executed at Pueblo, Colorado on the day and year first above written. CITY OF PUEBLO, PUEBLO SUBURBAN DEVELOPMENT, LLCa Municipal Corporation a Colorado limited liability company B ��� LL�X LCIC�f By e y Eicke an, Acting City Manager Name Title S: \Files -E (for all new City work) \CITY \ LITIGATION \Pueblo Suburban Development, LLOSeat7nent Agreement (rev 071111).wpd 0 shall be responsible for their own respective attorney fees, expenses and costs relative to the Civil Action and this Agreement. Should City need to enforce the terms of this Agreement, City shall be entitled to its reasonable attorneys' fees and costs. 12. As additional consideration for the compromise and settlement of claims contamed herein and the payments to be made hereunder, the parties agree that they each waive any right to trial by jury in any litigation seeking enforcement of this Agreement, arising under this Agreement, or in any way connected to this Agreement. 13 The undersigned certify that they have read this entire Release and Settlement Agreement, have consulted with their attorney, or have had the opportunity to consult with their attorneys concerning its terms, fully understand, approve and agree to its terms, and voluntarily enter into the Agreement. 14 This Agreement shall be governed by and interpreted under the laws of the State of Colorado. Venue and jurisdiction for any action arising out of or relating to this Agreement shall lie exclusively in the District Court, Pueblo County, Colorado. 15 This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, and all of which, when taken together, constitute one and the same Agreement. The signature of any party's representative to any counterpart shall be deemed a signature to and may be appended to, any other counterpart. A faxed signature of a party on a signature page of a counterpart of this Agreement shall be as valid and binding as the original ink impression of such party 16. Each of the signatories executing this Agreement in a representative capacity on behalf of any entity hereby certifies that he or she has actual authority to so execute on behalf of his or her principals. Executed at Pueblo, Colorado on the day and year first above written. CITY OF PUEBLO, PUEBLO SUBURBAN DEVELOP, 4ENT, LLCa Municipal Corporation a Colorado 1 d liability co luny By BY ..L_.a..� .4 Jenny Eickelman, Acting City Manager Name: FL_.3 FAT V N zE ys i Title: W4Nn � i ry r ' &R i ' c S: \Files -E (for all new City work)\CITY\LITIGATION\Pueblo Suburban Development, LLC \SMaritent Agreement (rev 07l 1 11).wpd