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HomeMy WebLinkAbout11915RESOLUTION NO. 11915 A RESOLUTION IN SUPPORT OF USING A PORTION OF THE VENDORS FEE TO FINANCE THE MEMORIAL HALL RENOVATION PROJECT THROUGH THE ISSUANCE OF BONDS IN THE PRINCIPAL AMOUNT UP TO $10,000,000 AND URGING THE REGISTERED ELECTORS OF THE CITY OF PUEBLO TO SUPPORT THE USE OF SUCH VENDORS FEE AT THE NOVEMBER 2, 2010, SPECIAL MUNICIPAL ELECTION BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: WHEREAS, the Pueblo City Council has discussed and fully supports the proposed Memorial Hall renovation project that would address regulatory issues with this historic building, including accessibility, building codes, and patron/performer safety issues, as well as take advantage of synergies with a proposed City Hall renovation project, enhance the historic character and identity of the facility, and increase use of Memorial Hall; and WHEREAS, the Pueblo City Council understands that with voter approval, a portion of the three and three-tenths (3.3%) of sales and use tax revenues, commonly referred to as the “Vendors Fee,” could be used to issue bonds in the principal amount up to $10,000,000 for the purpose of remodeling, restoring, and maintaining the historic Memorial Hall; and WHEREAS, C.R.S. §1-45-117(1)(b)(III)(A) authorizes City Council to adopt a Resolution taking a position in favor of a proposed ballot measure as contemplated; NOW THEREFORE, SECTION 1. The Pueblo City Council supports the Memorial Hall renovation project and the use of the Vendors Fee for the purpose of financing the Project. SECTION 2. The Pueblo City Council urges the voters at the Special Municipal Election to be held on November 2, 2010, to vote for the question allowing the Vendors Fee to be used for renovating Memorial Hall, paying the principal and interest on bonds issued for such purpose, and authorizing the issuance of revenue bonds in the principal amount up to $10,000,000 to finance the Memorial Hall renovation project. SECTION 3. This Resolution shall become effective upon final approval and passage. INTRODUCED: June 14, 2010 BY: Vera Ortegon /COUNCILPERSON Background Paper for Proposed RESOLUTION # Q-1 DATE: June 14, 2010 AGENDA ITEM DEPARTMENT: Office of the City Manager Jerry M. Pacheco, City Manager Jenny M. Eickelman, Assistant City Manager TITLE A RESOLUTION IN SUPPORT OF USING A PORTION OF THE VENDORS FEE TO FINANCE THE MEMORIAL HALL RENOVATION PROJECT THROUGH THE ISSUANCE OF BONDS IN THE PRINCIPAL AMOUNT UP TO $10,000,000 AND URGING THE REGISTERED ELECTORS OF THE CITY OF PUEBLO TO SUPPORT THE USE OF SUCH VENDORS FEE AT THE NOVEMBER 2, 2010, SPECIAL MUNICIPAL ELECTION ISSUE Should the City Council approve a Resolution urging support of a ballot measure authorizing use of the so-called “Vendors Fee” to issue revenue bonds in the principal amount up to $10 million to finance the Memorial Hall renovation project which will be considered by the voters at the November 2, 2010, Special Municipal Election? RECOMMENDATION This Resolution is brought forth at the request of the City Council. BACKGROUND On May 10, 2010, City staff and Mr. Chris Wineman, Principal of Semple Brown Design, P.C., made a presentation to City Council at a Work Session regarding a major renovation project for Pueblo Memorial Hall. This renovation project would address regulatory issues, such as accessibility, building code, and patron/performer safety. The project would also take advantage of synergies with the proposed City Hall Renovation Project, such as sharing costs associated with electrical, mechanical, and fire safety sprinklers, coordinated design teams, and shorter construction disruptions. The project would enhance the historic character and identity of the facility, and, upon completion, is expected to result in increased year-round usage of the facility. This project would improve seating, enlarge the stage, modernize restroom facilities and dressing rooms, provide air conditioning, and improve backstage facilities. The amount of the Vendors Fee now exceeds the amount required for debt service on the Convention Center bonds and its operating deficiency, and the bonds on the Convention Center will be paid in full in 2019. Both of these circumstances would make the Vendors Fee available to finance the Memorial Hall renovation project, if the voters approve such use. Following the Work Session presentation on May 10, Administration was directed by the Council to explore revenue bond financing and to bring back for Council’s consideration a Resolution supporting bond financing options. This Resolution would not only ratify the Council’s support of using the Vendors Fee to finance the Memorial Hall renovation project, but would also urge the voters to support a ballot question at the Special Municipal Election to be held on November 2, 2010, to authorize the City to issue revenue bonds to finance the Memorial Hall renovation project through the use of the Vendors Fee. This Resolution is authorized under C.R.S. §1-45- 117(1)(b)(III)(A), a provision of the Fair Campaign Practices Act. FINANCIAL IMPACT If the ballot issue is approved, it would not increase the sales tax rate but would allow the Vendors Fee to be used to fund the renovation of Memorial Hall in the principal amount up to $10 million.