The URL can be used to link to this page

Home My WebLink About11956RESOLUTION NO. 11956 A RESOLUTION APPROVING AMENDMENT NO. 1 TO COOPERATION AGREEMENT BETWEEN PUEBLO, A MUNICIPAL CORPORATION AND THE URBAN RENEWAL AUTHORITY OF PUEBLO AND AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL TO EXECUTE SAME BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. Amendment No. 1 to Cooperation Agreement between the City of Pueblo, a Municipal Corporation and the Urban Renewal Authority of Pueblo, Colorado (“Amendment No. 1”), 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 Amendment No. 1 in the name of the City and the City Clerk is directed to affix the seal of the City thereto. SECTION 2. This Resolution shall become effective upon final passage and approval. INTRODUCED: August 23, 2010 BY: Vera Ortegon /COUNCILPERSON Background Paper for Proposed RESOLUTION DATE: AGENDA ITEM August 23, 2010 # M-4 DEPARTMENT: Law Department Thomas J. Florczak, City Attorney TITLE A RESOLUTION APPROVING AMENDMENT NO. 1 TO COOPERATION AGREEMENT BETWEEN PUEBLO, A MUNICIPAL CORPORATION AND THE URBAN RENEWAL AUTHORITY OF PUEBLO AND AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL TO EXECUTE SAME ISSUE Should City Council approve an amendment to the Cooperation Agreement between the Urban Renewal Authority ("Authority") of Pueblo and the city concerning the rebate of taxes to Vestas Towers America, Inc. ("Vestas"). RECOMMENDATION Vestas has requested approval of this amendment. BACKGROUND In December 2009, City Council approved an Urban Renewal Plan for the Saint Charles Industrial Park Urban Renewal Project Area. That Urban Renewal Area was and remains owned by Vestas. In order to develop the Urban Renewal Project Area, the Authority agreed with Vestas that Vestas would finance the construction of infrastructure within the Urban Renewal Area and receive reimbursement of such costs, up to $12,500,000, out of certain pledged Property Tax TIF over a period of approximately nine years. The pledged TIF excludes the TIF revenue equal to the City's mill levy applied to assessed value, which is paid by the Authority directly to the City. These terms are incorporated into a Cooperation Agreement between the City and Authority and a separate Reimbursement agreement between the City and Vestas. Because the Vestas personal property was not assessed when anticipated and will not be placed on the tax rolls until the 2011 tax year with taxes due and payable in 2012, Vestas has requested that the dates in the Cooperation and Reimbursement Agreements be adjusted so that there will be sufficient TIF revenues available to pay the reimbursement. FINANCIAL IMPACT No financial impact to the City. AMENDMENT NO. 1 TO COOPERATION AGREEMENT THIS AMENDMENT NO. 1 to Cooperation Agreement ( "Amendment No. 1") is made and entered into this 23rd day of August, 2010 between Pueblo, a Municipal Corporation (the "City ") and the Urban Renewal Authority of Pueblo, Colorado (the "Authority "). WHEREAS, City and Authority heretofore entered into a Cooperation Agreement dated as of June 8, 2009 (the "Cooperation Agreement "); and WHEREAS, due to information provided by the Pueblo County Assessor, it is necessary and desirable that the Cooperation Agreement be amended to change certain dates related to the assessment and payment of personal property taxes. NOW, THEREFORE, in consideration of the foregoing recitals and the mutual terms and conditions set forth herein, and other valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties agree as follows: 1. The definition of "County Tax Contribution" in Section 4.0 of the Cooperation Agreement is amended to read as follows: "County Tax Contribution" means 50% of the County personal property tax paid by the Owner for personal property located within the Urban Renewal Area for a period of 10 years starting with payments made in 2012. 2. Section 7.0 b. of the Cooperation Agreement is amended to read as follows: b. County Tax Contribution. Unless otherwise agreed in writing between the County and Authority, commencing January 1, 2012 and continuing until the earlier of (i) the end of the Term, or (ii) December 31, 2021, the Authority shall transfer to the Owner quarterly, or as otherwise agreed in writing by the Parties, all of the County Tax Contribution received by the Authority. 3. Except as expressly modified by this Amendment No. 1, the Cooperation Agreement shall remain in full force and effect. Except as expressly modified, any obligations remaining to be performed under the Cooperation 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 Cooperation Agreement as it existed prior to this Amendment No. 1. , r IN WITNESS WHEREOF, Authority and City have executed this Amendment No. 1 to the Cooperation Agreement as of the date first above written. ATTEST: PUEBLO, a Municipal Corporation By: 114w _. x..•_ _ . . City erk President of the City Council APPROVED AS TO FORM: 74 City Attorne 4191 THE URBAN RENEWAL AUTHORITY OF PUEBLO, CO : ' • DO ATTEST: By: A LA, • -.ago / Chai an e the Commis 'oners Se. etary 2 RESOLUTION NO. JO! Q A RESOLUTION APPROVING THE AMENDED COOPERATION AGREEMENT BETWEEN THE URBAN RENEWAL AUTHORITY OF PUEBLO, COLORADO, A BODY CORPORATE AND POLITIC OF THE STATE OF COLORADO AND PUEBLO, A MUNICIPAL CORPORATION RELATING TO THE SAINT CHARLES INDUSTRIAL PARK URBAN RENEWAL PROJECT AND TAX INCREMENT FINANCING, AND AUTHORIZING CHAIRMAN TO EXECUTE SAME WHEREAS, In accordance with the Urban Renewal Plan for the Saint Charles Industrial Park Urban Renewal Project Area, adopted by Pueblo City Council in December, 2008, and the Cooperation Agreement between the City of Pueblo and the Urban Renewal Authority of Pueblo, dated June 8, 2009, the Urban Renewal Authority of Pueblo entered into an agreement with Vestas Towers America, Inc.; and, WHEREAS, the Urban Renewal Authority of Pueblo and Vestas Towers America, Inc. have agreed to modifications of the Agreement; and such changes have been incorporated into an Amendment No. 1 to the Agreement, approved by the Urban Renewal Authority of Pueblo Board of Commissioners on August 10, 2010 via Resolution 2010 -21; and, WHEREAS, the approval of Amendment No. 1 between the Urban Renewal Authority of Pueblo and Vestas Towers of America, Inc. requires a similar Amendment No. 1 to the coinciding Cooperation Agreement between the Urban Renewal Authority of Pueblo and the City of Pueblo. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE URBAN RENEWAL AUTHORITY OF PUEBLO, COLORADO, THAT: Amendment No. 1 to Reimbursement Agreement by and between the Urban Renewal Authority of Pueblo and the City of Pueblo is hereby approved. Of Adopted this 14th day of September 2010. / , t. / / APPROVED: /11P /s,. 1 .o L, L1 - Chair-•erson, URB a REN. AL AUTHO r ITY OF PUEBLO . .- ST: / ojr ( C 14 11. Se etary W Asor